Financial Performance - For the fiscal year ending July 31, 2022, the group recorded revenue of HKD 830.2 million, a slight decrease of 0.6% compared to HKD 835.3 million in the previous fiscal year[14]. - Revenue from cinema operations increased by approximately 80.8% compared to the previous fiscal year, contributing positively to overall performance[14]. - Gross profit rose by approximately 89.5% to HKD 348.9 million, up from HKD 184.1 million in the previous year[14]. - The net loss attributable to shareholders was approximately HKD 328.7 million, a slight improvement from a net loss of HKD 351.1 million in the previous year[15]. - The loss per share was HKD 0.220, compared to HKD 0.235 in the previous year[15]. - The group reported a loss before tax of HKD 406,869,000 for the year, compared to a loss of HKD 399,845,000 in the previous year, indicating a deterioration in performance[40]. - The company's revenue for the year ended July 31, 2022, was HKD 830.2 million, a slight decrease from HKD 835.3 million in the previous year[46]. - Gross profit increased significantly to HKD 348.9 million, resulting in a gross margin of 42.0%, compared to 22.0% in the prior year[46]. - The company reported an operating loss of HKD 334.6 million, slightly improved from a loss of HKD 339.3 million in the previous year[46]. - The group reported a net loss attributable to shareholders of HKD 328,732,000 for the year, compared to a loss of HKD 351,126,000 in the previous year, showing a slight improvement[40]. Business Operations - The company continues to focus on media and entertainment, music production and distribution, and cinema operations in Hong Kong and mainland China[14]. - The group is actively involved in the development and investment in various entertainment sectors, including film and television production[8]. - The cinema operations in Hong Kong gradually recovered, with a maximum seating capacity of 85% allowed as of January 2022, but faced temporary closures due to the fifth wave of COVID-19[21]. - A new cinema, MCL Cinemas Plus+ at Hollywood Plaza, commenced operations in July 2022, with another cinema expected to open in the second quarter of 2023[24]. - The cinema operations segment reported revenue of HKD 385 million for the year ended July 31, 2022, compared to HKD 213 million in 2021, with a loss of HKD 128.6 million, improved from a loss of HKD 151 million in the previous year[55]. - The media and entertainment segment generated revenue of HKD 256.8 million, down from HKD 321.1 million in 2021, with a reduced loss of HKD 7.7 million compared to HKD 17.4 million in the previous year[58]. - The film and television production and distribution segment recorded revenue of HKD 185.8 million, down from HKD 298.9 million in 2021, with a loss of HKD 52.8 million, improved from a loss of HKD 94.9 million in the previous year[62]. - The group produced or invested in 8 films during the year, up from 6 films in 2021, and released 19 films and 196 videos, compared to 27 films and 165 videos in the previous year[62]. Financial Position - As of July 31, 2022, the company's attributable equity was HKD 965.2 million, down from HKD 1,263.4 million on July 31, 2021[16]. - The net asset value per share as of July 31, 2022, was HKD 0.647, a decrease from HKD 0.847 on July 31, 2021[16]. - As of July 31, 2022, the group's total cash and bank deposits amounted to HKD 1,202,900,000, down from HKD 1,640,900,000 a year earlier, reflecting a decrease of approximately 26.6%[35]. - The debt-to-equity ratio as of July 31, 2022, was 38.4%, an increase from 30.3% in the previous year, indicating a rise in financial leverage[35]. - Total assets decreased to HKD 3,170.7 million from HKD 3,717.1 million year-over-year[46]. - Total liabilities also decreased to HKD 2,168.3 million from HKD 2,393.7 million in the previous year[46]. - The current ratio decreased to 1.9 from 2.2 in the previous year, indicating a decline in short-term liquidity[46]. - The total outstanding loans as of July 31, 2022, amounted to HKD 370.8 million, with bank loans of HKD 143.9 million due within one year[65]. Strategic Initiatives - The company continues to invest in original quality film production in China, with several projects currently in production[26]. - The company is exploring new opportunities in the media and entertainment sector, including the development of online content for streaming platforms[25]. - The company is in discussions with various Chinese online platforms for new television drama projects[29]. - The group plans to continue collaborating with local and Asian artists for upcoming concerts, including performances by Ekin Cheng and Super Junior, to enhance revenue streams[30]. - The group is actively seeking cooperation and investment opportunities to diversify its business and broaden income sources amid a cautious market outlook[30]. - The company aims to enhance its market position as a leading multi-screen cinema operator in Hong Kong while cautiously assessing further expansion opportunities[21]. Environmental, Social, and Governance (ESG) - The company published its annual Environmental, Social, and Governance (ESG) report, outlining management policies and strategies in these areas[72]. - The board of directors is responsible for overseeing significant ESG issues and integrating them into the company's strategies and policies[75]. - The company conducted extensive stakeholder engagement activities to identify significant ESG issues relevant to its business and stakeholders[77]. - The group aims to enhance its ESG strategies based on stakeholder feedback collected through independent consultations[78]. - The company will continue to review significant ESG issues annually to ensure effective management and strategy implementation[81]. - The company aims to reduce its environmental impact while conducting business sustainably, focusing on effective management of carbon emissions, waste generation, water usage, and resource consumption[85]. - The company has conducted a climate risk assessment to identify and evaluate potential risks in its operations, with tropical cyclones identified as a significant climate-related risk[87]. - The company has implemented a series of reduction procedures and control measures to minimize waste and emissions from its operations[89]. - The company is committed to energy management and has established green policies to reduce energy consumption and greenhouse gas emissions[93]. - The company has identified "energy" and "customer satisfaction" as new important issues for its business operations compared to the previous year's report[86]. Employee Welfare and Training - The group employed approximately 560 employees as of July 31, 2022, a decrease from 580 employees in the previous year[70]. - The company is committed to providing comprehensive employee benefits, including mandatory provident fund, medical insurance, and housing provident fund[101]. - During the COVID-19 pandemic, the company provided paid special leave and financial support for employees needing quarantine[102]. - The company has taken measures to ensure employee health and safety, including providing free surgical masks and disinfectants during the pandemic[104]. - The company organizes various health and wellness workshops and activities to promote employee well-being[105]. - The group provides extensive on-the-job training programs for employees, particularly focusing on enhancing communication skills and other business competencies[108]. - Performance evaluations are conducted annually, with employees in mainland China undergoing assessments twice a year, in July and December[109]. - The company emphasizes the importance of employees for sustainable operations and strives to create a healthy and supportive work environment[96]. Corporate Governance - The company has adhered to the corporate governance code and has established policies and procedures in line with the Hong Kong Stock Exchange's listing rules[178]. - The company has implemented new corporate governance regulations effective from January 1, 2022, including the establishment of a nomination committee[180]. - The board consists of nine members, including four executive directors and four independent non-executive directors, exceeding the minimum requirement for independent directors[188]. - The board held a total of four meetings in the year, with all executive directors attending all meetings[195]. - The company has established mechanisms to ensure independent opinions are obtained for board decisions[192]. - The board chair meets annually with independent non-executive directors without the presence of executive directors[195]. - The company has purchased appropriate directors' and officers' liability insurance for its directors and senior management[200]. - The nomination committee evaluates the independence of newly appointed independent non-executive director candidates annually[192].
丰德丽控股(00571) - 2022 - 年度财报