Financial Performance - Total revenue for 2021 was HKD 340,437,000, a significant increase of 87.2% compared to HKD 181,858,000 in 2020[46] - The group reported a loss before tax of HKD 623,063,000, compared to a profit of HKD 1,277,229,000 in the previous year[46] - The group incurred a loss attributable to shareholders of HKD 469,397,000, a decrease from a profit of HKD 871,566,000 in 2020[46] - The company reported a loss attributable to equity holders of HKD 258.3 million for the year ended December 31, 2021, a significant decline from a profit of HKD 884.8 million for the year ended December 31, 2020[62] - The group’s total comprehensive income for the year was not specified, but the net loss indicates a challenging financial year[46] - The company reported a total loss attributable to equity holders of approximately HKD 469.4 million for the year 2021, compared to a profit of HKD 871.6 million in 2020[74] Revenue Sources - Total revenue from continuing operations was HKD 340.4 million in 2021, compared to HKD 181.9 million in 2020, indicating a substantial increase[61] - The group contributed approximately HKD 265.5 million in revenue from its integrated resort operations in the Primorsky Krai region of Russia, up from HKD 47.7 million in 2020[78] - The total gaming revenue for the year was HKD 286 million, a significant increase from HKD 53 million in the previous year[67] - The group experienced a significant decline in travel-related revenue, recording approximately HKD 42.8 million, down from HKD 123.8 million in 2020 due to the impact of the COVID-19 pandemic[78] Costs and Expenses - The group recognized an impairment loss of HKD 119,717,000 on loans to a joint venture[46] - The group’s financing costs decreased to HKD 283,876,000 from HKD 329,053,000 in the previous year[46] - The total employee costs for the year ended December 31, 2021, amounted to approximately HKD 205.5 million, compared to HKD 97.5 million in 2020[142] - Sales and distribution expenses increased in 2021 due to the consolidation of the financial performance of the acquired company, Kaisa[82] - Administrative expenses rose in 2021 mainly due to increased employee costs following the acquisition of Kaisa in Q4 2020[83] Strategic Focus and Development - The group plans to focus on market expansion and new product development in the upcoming year[46] - The company is focusing on maintaining a stable cash reserve and has implemented unprecedented cost-cutting measures[53] - The company plans to concentrate resources in regions that provide the most stable returns and lowest risks[54] - The company is considering the sale of land in Japan for hotel development as part of its strategic realignment[53] - The group is developing a five-star hotel and entertainment complex in Manila, expected to commence operations in 2024[77] Asset Management - Non-current assets decreased to HKD 5,615.2 million in 2021 from HKD 7,056.4 million in 2020[49] - Current assets also declined to HKD 2,716.7 million in 2021 from HKD 3,674.4 million in 2020[49] - As of December 31, 2021, the total cash and bank balances amounted to approximately 1,573.0 million HKD, a decrease from 2,644.5 million HKD as of December 31, 2020[129] - The group's total borrowings were approximately 972.3 million HKD, with about 823.1 million HKD due within one year[129] Market Conditions and Impact - The global tourism industry continued to be severely impacted by the pandemic in 2021, with most regions still lacking bilateral quarantine-free travel arrangements[192] - The Russian tourism sector saw a 15% year-on-year decline in foreign visitors to approximately 115,000 in 2021, affected by the pandemic and geopolitical tensions[193] - The number of tourists from Japan, South Korea, and China dropped by 63% to 1.4 million in 2021 due to travel restrictions during the pandemic[199] - The Philippine GDP grew by 5.6% in 2021, recovering from a 9.6% decline in 2020[199] Gaming Operations - The gaming business at Crystal Tiger Palace was primarily derived from VIP, mass market, and slot machine operations[171] - Total betting amount in the gaming segment increased by 37% from approximately HKD 362 million in 2020 to approximately HKD 496 million in 2021[172] - Net gaming revenue for the gaming segment rose by 38% from approximately HKD 82 million in 2020 to approximately HKD 113 million in 2021[172] - Slot machine betting amount increased by 57% from approximately HKD 2,217 million in 2020 to approximately HKD 3,477 million in 2021[175] Corporate Governance and Employee Relations - The company regularly reviews its compensation policies based on employee performance and industry practices, providing year-end bonuses and stock options as rewards[146] - The company has implemented appropriate operational measures and health protocols to protect employees during the pandemic[147] - The company encourages employees to participate in training programs to obtain professional qualifications relevant to their job roles[145] - The company has established a transparent process for determining director remuneration, which is reviewed annually by the remuneration committee and the board[146]
LET GROUP(01383) - 2021 - 年度财报