Financial Performance - The Group's turnover decreased to approximately HK$127.6 million, with a loss of approximately HK$78.9 million for the year ended June 30, 2022[9]. - The Group recorded a loss of approximately HK$78.9 million for the year ended June 30, 2022, compared to a profit of approximately HK$152.5 million for the previous year, primarily due to a revenue decrease from approximately HK$602.6 million to approximately HK$127.6 million[21]. - The Group's segmental revenue from film distribution and exhibition decreased by approximately 86.9% to approximately HK$69.0 million, accounting for approximately 54.1% of the Group's total revenue during the year[24]. - An impairment loss of approximately HK$27.5 million was recorded for film rights and related assets, significantly higher than the approximately HK$3.0 million recorded in the previous year[26]. - The Group's segmental loss amounted to approximately HK$61.7 million, a stark contrast to the segmental profit of approximately HK$193.5 million from the previous year[27]. - Revenue from the optical products and watches segment was approximately HK$36.1 million, a decrease of approximately 35.4% compared to HK$55.9 million in the previous year, accounting for approximately 28.3% of the Group's revenue[34][35]. - The financial printing segment recorded a loss of approximately HK$11.2 million, an increase from HK$4.5 million in the previous year, primarily due to an impairment loss of HK$4.7 million and increased expenses of HK$2.0 million[60]. Market Conditions - The PRC's movie industry gross box office reached approximately RMB47.2 billion in 2021, recovering to approximately 74% of its pre-pandemic level[8]. - The total box office for the PRC's movie market decreased by approximately 37.7% to approximately RMB17.2 billion for the first half of 2022 compared to the same period last year[8]. - The PRC's total box office decreased by approximately 37.7% to approximately RMB17.2 billion in the first half of 2022 due to the rapid spread of COVID-19 variants[21]. - The pandemic situation in the PRC has stabilized since June 2022, with expectations for a steady rebound in the film market[10]. - The operating rate of movie theatres in the PRC has gradually recovered since June 2022, indicating signs of market recovery[31]. Business Strategy - The Group delayed the theatrical debut of several quality films in response to intermittent lockdowns and cinema closures in the PRC[9]. - The Group plans to continue investing and producing quality films in the coming years to drive business growth in the PRC market[10]. - The Group plans to invest in original productions, with upcoming releases including "Flashover" and "Shock Wave 3," featuring notable directors and actors[28]. - The Group's strategy includes closely monitoring the operating environment and adjusting business plans as necessary[31]. - The Group plans to continue investing in quality film production and expand financial printing services to meet increasing market demand[72]. Cost Management - The extended anti-pandemic measures and economic downturn in Hong Kong caused severe hardship in the Group's optical and watch products business, securities trading, and financial printing[15]. - The Group will implement strict cost-saving measures and adjust business strategies to address upcoming challenges[15]. - Cost-saving measures implemented included reducing the number of retail shops and seeking rental reductions, which helped mitigate the financial impact of the COVID-19 pandemic[40][41]. - The Group will adopt a prudent approach to control costs and enhance operational efficiency in its optical and watch products trade, wholesale, retail, and securities investment business[72]. Corporate Governance - The Company has adopted corporate governance principles emphasizing a quality board, effective risk management, and stringent disclosure practices[106]. - The Company has complied with the Corporate Governance Code except for the separation of roles between Chairman and CEO, which are currently held by the same individual[108]. - The Board is collectively responsible for overseeing business management, strategic decisions, and financial performance for the best interests of Shareholders[115]. - The Company has made continuous efforts to enhance internal controls and procedures in light of regulatory changes and best practices[107]. - The Company has established an Audit Committee on October 11, 1999, which currently comprises three independent non-executive Directors[160]. Risk Management - The Board is responsible for establishing, maintaining, and reviewing the Group's risk management and internal control systems[174]. - An external consultant was engaged to evaluate the Group's risk management and internal control systems, identifying strategic, operational, financial, and compliance risks[177]. - The Group's risk management and internal control systems were reviewed and deemed effective and adequate by the Board for the Year[183]. - The Audit Committee reviews the effectiveness of the internal control system and reports the results to the Board annually[183]. Financial Position - As of June 30, 2022, the Group had cash and cash equivalents of approximately HK$211.8 million, a decrease from approximately HK$375.9 million in 2021[76]. - The Group's total assets as of June 30, 2022, were approximately HK$1,073.0 million, compared to approximately HK$1,051.8 million in 2021[76]. - The gearing ratio as of June 30, 2022, was approximately 3.1%, down from approximately 4.2% as of June 30, 2021[76]. - The current ratio as of June 30, 2022, was approximately 0.42, significantly lower than approximately 1.11 as of June 30, 2021[76]. Shareholder Rights - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition a special general meeting[198]. - The procedures for shareholders to submit proposals at meetings require a written notice with detailed contact information to the Company Secretary[200]. - For ordinary resolutions at special general meetings, a minimum of 14 clear days' notice is required, including 10 clear business days[200]. - For special resolutions at special general meetings, a minimum of 21 clear days' notice is required, including 10 clear business days[200].
寰宇娱乐文化(01046) - 2022 - 年度财报