Financial Performance - The company reported a revenue of HKD 392 million in 2023, a decrease from HKD 633 million in 2021, reflecting a significant decline in performance [8]. - The company experienced a loss of HKD 1,034 million in 2022, which improved to a loss of HKD 83 million in 2023, showing a positive trend in financial recovery [12]. - The company reported a 31.08% year-on-year decline in revenue from the indoor theme park segment due to the pandemic's impact [28]. - The multimedia animation entertainment segment did not generate any revenue during the year [28]. - The company's revenue for the year ended March 31, 2023, was approximately HKD 360.3 million, a decrease of about HKD 92.8 million or 20.5% from HKD 453.1 million in the previous year [44]. - The gross profit for the same period was approximately HKD 19.9 million, down 68.3% from HKD 62.7 million, resulting in a gross margin of 5.5% compared to 13.8% in the prior year [52]. - The revenue from the operation of indoor theme parks decreased by approximately HKD 84.8 million, primarily due to a decline in sales of theme park machinery [45]. - The sales of anime derivative products increased by approximately 6.8% to about HKD 172.4 million, attributed to price adjustments amid global inflation [46]. - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% year-over-year growth [86]. - The company reported a net profit margin of 10%, up from 8% in the previous year [86]. Assets and Liabilities - Total assets reached HKD 2,209 million in 2023, up from HKD 1,675 million in 2021, indicating growth in the company's asset base [9]. - The group's asset-to-liability ratio as of March 31, 2023, was approximately 195.6%, compared to 62.9% as of March 31, 2022 [65]. - The expected credit loss under the impairment model decreased to approximately HKD 283.7 million for the year ended March 31, 2023, from HKD 537.3 million for the year ended March 31, 2022 [58]. - Loss attributable to owners of the company decreased by approximately HKD 16.6 million or 1.6% to approximately HKD 1,033.6 million for the year ended March 31, 2023, due to a reduction in impairment losses [59]. Business Segments and Operations - The company operates three major business segments: theme park operations, anime derivative product trading, and multimedia entertainment, focusing on global expansion [15]. - The CA SEGA JOYPOLIS brand, acquired in 2017, has expanded to three major locations in Shanghai, Qingdao, and Tokyo, enhancing the company's market presence [15]. - The company has developed its own VR esports game "Huangyangjie Defense War," which has received multiple industry awards, showcasing its innovation in the gaming sector [17]. - The company is actively exploring IP toy platform business opportunities, capitalizing on its extensive experience and reputation in the industry [16]. - The company has collaborated with international brands and invested in anime productions, expanding its global reach and influence [16]. - The company launched the JOYPOLIS SPORTS theme park in Sendai, Japan, on April 29, 2022, promoting a world of entertainment and sports for all ages [34]. - The company plans to expand its CA SEGA JOYPOLIS theme parks in China over the next decade, with a focus on both large and small indoor theme parks [43]. - The company is focusing on developing Web 3.0 and metaverse-level indoor parks, leveraging valuable Japanese IP resources [26]. Employee and Operational Efficiency - The company retained 301 employees to strengthen its R&D capabilities despite the challenging year [28]. - The group had 301 employees as of March 31, 2023, an increase from 216 employees as of March 31, 2022 [74]. - Employee compensation and benefits for the year ended March 31, 2023, amounted to approximately HKD 72.5 million, down from HKD 85.6 million in the previous year, primarily due to a decrease in employee compensation of about HKD 7.0 million [74]. - The company aims to enhance operational efficiency by integrating offline park visitors with an online toy platform through various IP activities [40]. Strategic Initiatives and Future Plans - The company is actively seeking new funding and revenue sources while navigating a challenging economic climate [24]. - The company aims to optimize shareholder capital returns as a top priority amidst a recovering market environment [30]. - The company is considering strategic acquisitions to enhance its market position, targeting companies with complementary technologies [86]. - Market expansion efforts are underway, with plans to enter three new international markets by Q3 2024 [86]. - The company is investing in new technology development, allocating $50 million towards R&D initiatives [86]. Corporate Governance - The company is committed to high standards of corporate governance to create long-term value for all shareholders [96]. - As of March 31, 2023, the company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, except for specific provisions detailed in the report [97]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balance of perspectives [102]. - The board is responsible for overseeing the company's affairs and adopting long-term strategies, while management is tasked with daily operations [103]. - The company has established a dividend policy that considers financial performance, shareholder equity, and overall business conditions when declaring dividends [100]. - The board has mechanisms in place to ensure independent viewpoints and opinions are available for decision-making [102]. - The company has reviewed its corporate governance policies and practices during the fiscal year ending March 31, 2023 [107]. - The board is responsible for preparing financial statements that fairly reflect the group's financial position and performance [108]. Risk Management - The company has established a comprehensive risk management system, integrating risk identification, assessment, and response into daily operations [152]. - The board is responsible for maintaining an effective internal control system to ensure operational efficiency and compliance with applicable laws [153]. - The company has implemented a two-tier risk management framework to enhance risk management effectiveness [150]. Shareholder Engagement - The company encourages shareholder participation in general meetings and allows proxy voting for those unable to attend [165]. - The company maintains effective communication with shareholders and investors through various channels, including financial reports and shareholder meetings [163]. - The company’s website provides updated information regarding the board of directors, committee charters, and other relevant corporate governance details [167].
华夏文化科技(01566) - 2023 - 年度财报