Financial Performance - The group's revenue for the fiscal year ending March 31, 2023, was approximately HKD 39.6 million, a decrease of about 42% compared to HKD 67.8 million in the previous fiscal year[6]. - The group recorded a loss before tax of approximately HKD 20.9 million, compared to a loss of HKD 18.4 million in the previous fiscal year, indicating an increase in losses[6]. - Revenue from digital media services decreased from approximately HKD 42.2 million to HKD 36.0 million, a decline of about 15% due to intense competition and tightened customer spending[14]. - Revenue from other media services dropped significantly from approximately HKD 24.1 million to HKD 2.5 million, leading to increased losses in this segment[16]. - Loss before tax increased from approximately HKD 18.4 million to about HKD 20.9 million, with the increase attributed to various factors including a shift from profit to loss from associated companies[26]. - The company reported a significant decrease in distributable reserves, amounting to approximately HKD 32.1 million as of March 31, 2023, down from HKD 57.5 million in 2022[157]. Digital Media Services - Digital media services accounted for approximately 90.8% of total revenue, showing growth despite a decrease in other media services due to the absence of live events[6]. - The loss before tax for the digital media services segment decreased from approximately HKD 16.6 million to HKD 13.0 million, a reduction of about 22%[14]. Cost Management - Sales cost decreased from approximately HKD 57.8 million for the year ended March 31, 2022, to about HKD 30.1 million for the current year, a reduction of approximately HKD 27.7 million or 48%[20]. - Gross profit decreased from approximately HKD 9.9 million for the year ended March 31, 2022, to about HKD 9.5 million, a decline of approximately HKD 0.4 million or 4%, while the overall gross margin increased from about 15% to 24%[21]. - Selling and distribution expenses increased from approximately HKD 3.8 million to about HKD 8.2 million, an increase of approximately HKD 4.4 million or 115%[22]. - Administrative expenses decreased from approximately HKD 24.4 million to about HKD 17.2 million, a reduction of approximately HKD 7.2 million or 30%[25]. Strategic Plans - The group plans to diversify marketing channels across various online and offline platforms to enhance brand awareness and improve the variety and content of events[7]. - The group aims to focus on the development of new technologies, particularly artificial intelligence and automation, to improve business efficiency[18]. - The company is currently negotiating with multiple service providers to upgrade its technology infrastructure, including the television website and mobile application[48]. Corporate Governance - The company has a strong governance structure with independent non-executive directors serving on various committees, including the audit, remuneration, and nomination committees[58][59][62]. - The board consists of two executive directors and three independent non-executive directors as of March 31, 2023[77]. - The company has implemented all corporate governance code provisions and will continue to enhance governance practices for future fiscal years[76]. - The board meets at least four times a year and additional meetings are held as necessary[76]. - The company has adopted a zero-tolerance policy towards all forms of bribery, fraud, and corruption, ensuring high standards of governance and ethics[125]. Shareholder Communication - The board has established a shareholder communication policy to maintain effective dialogue with shareholders through various channels, including printed or electronic copies of communications and annual general meetings[130]. - The company emphasizes the importance of transparency and timely disclosure of information to enable shareholders and investors to make informed decisions[130]. - The board encourages shareholders to submit inquiries and suggestions, and provides contact information for direct communication[136]. Risk Management - The board is responsible for monitoring the effectiveness of the group's risk management and internal control systems, which are designed to manage significant risks rather than eliminate them[120]. - The company conducts systematic fraud risk assessments to mitigate internal and external fraud risks[126]. - The board regularly reviews security measures to ensure proper handling and dissemination of insider information[127]. Employee and Management Structure - The total number of full-time employees decreased from 77 to 73, with employee benefit expenses dropping from approximately HKD 38.7 million to HKD 26.5 million[40]. - The management team is composed of individuals with extensive experience in their respective fields, ensuring effective oversight and strategic direction for the company[63][67][69]. Share Option Plan - The total number of shares available for issuance under the share option plan is 27,000,000 shares, representing 10% of the company's issued share capital as of the report date[192]. - The maximum number of shares that can be issued upon the exercise of all unexercised options under the share option plan shall not exceed 30% of the company's issued share capital at any time[194]. - The individual limit for each participant under the share option plan is capped at 1% of the company's issued share capital within any 12-month period[193].
毛记葵涌(01716) - 2023 - 年度财报