Financial Performance - The Group recorded a revenue of HK$68.6 million for the year ended December 31, 2022, a decrease of 68.7% compared to HK$218.7 million in the previous year[16]. - Gross profit for the year was HK$14.2 million, down from HK$56.7 million in the previous year, reflecting a gross margin decline[16]. - The net loss for the year was HK$88.3 million, compared to a net loss of HK$41.6 million in the previous year, indicating a worsening financial performance[16]. - The Group's sports and entertainment business recorded revenue of HK$68.3 million in the Current Year, a significant decrease of approximately 69% from HK$218.7 million in the Corresponding Year[23][36]. - Gross profit dropped to approximately HK$14.2 million, with a gross profit margin of 20.7%, down from HK$56.7 million and 25.9% respectively in the Corresponding Year[36][40]. - The loss before tax was HK$39.6 million, compared to a net loss of HK$1.1 million in the Corresponding Year, with a one-off non-cash impairment loss on goodwill of HK$29.1 million[24][26]. - The Group recorded a net loss of HK$88.3 million in the Current Year, an increase from HK$41.6 million in the Corresponding Year, primarily due to a significant decrease in revenue and gross profit contribution from the sports and entertainment business by approximately HK$150 million and more than HK$42.5 million respectively[54][56]. Assets and Liabilities - Total assets decreased to HK$386.5 million as of December 31, 2022, down from HK$557.6 million in 2021, representing a decline of 30.7%[14]. - Total liabilities were HK$130.9 million, reduced from HK$194.9 million in the previous year, showing a decrease of 32.9%[14]. - Net assets stood at HK$255.6 million, down from HK$362.7 million in 2021, reflecting a decrease of 29.5%[14]. - The Group's interest-bearing borrowings were approximately HK$26.7 million as of December 31, 2022, down from HK$39.3 million as of December 31, 2021[72]. - The gearing ratio was 6.9% as of December 31, 2022, slightly down from 7.1% as of December 31, 2021[72]. - The current assets were approximately HK$237.3 million as of December 31, 2022, compared to approximately HK$349.8 million as of December 31, 2021[73]. - The current ratio was 1.94 as of December 31, 2022, down from 2.02 as of December 31, 2021[73]. Business Strategy and Outlook - The Company aims to leverage its position as a leading integrated service provider of air dome facilities in China to meet the growing demand for indoor sports facilities[17]. - Future strategies may include market expansion and the development of new technologies related to air dome facilities[17]. - The Group is optimistic about business volume improvement next year due to secured reserve contracts and potential contracts in the pipeline[25][27]. - The Group is focusing on optimizing its business model and strengthening risk management, particularly regarding trade receivables[25][29]. Subsidiaries and New Ventures - The Group established a new 51%-owned subsidiary in the PRC for manufacturing and selling white pigment powder, with a registered capital of RMB10 million[30][33]. - The Group's subsidiary, MetaSpace (Beijing) Air Dome Corp, is positioned to capitalize on the increasing popularity of eco-friendly and cost-effective sports facilities[17]. Income and Expenses - Other income and gains increased to HK$11.7 million from HK$3.1 million in the Corresponding Year, primarily due to a decrease in fair value loss on unlisted equity investments[37][41]. - Selling expenses decreased by HK$2.3 million or 22.5%, mainly due to reduced payroll costs from decreased revenue[38][42]. - Administrative expenses remained stable at approximately HK$44 million across both years, with specific costs such as wages at HK$21.2 million and professional fees at HK$5.7 million in the Current Year[43]. - The Group recorded a net cash outflow from operating activities of approximately HK$(69.1) million for the current year, compared to an inflow of approximately HK$21.7 million in the corresponding year[71]. Impairment and Losses - Impairment loss on goodwill related to the sports and entertainment business was approximately HK$29.1 million in the Current Year, whereas no such item was recognized in the Corresponding Year[56]. - Impairment losses on financial and contract assets included expected credit loss of trade receivables and contract assets of HK$18.7 million, down from HK$21.6 million in the Corresponding Year, and expected credit loss on debt investments of HK$6.4 million, down from HK$16.4 million[45][49]. - Other expenses included an impairment loss on property, plant, and equipment of HK$3.5 million, direct operating expenses of a leasing air dome stadium of HK$1.8 million, and an impairment loss on right-of-use assets of HK$1.1 million[46][50]. Share Capital and Options - As of December 31, 2022, there are 35,142,000 outstanding share options, representing approximately 2.50% of the total number of Shares in issue, which is 1,408,019,000[185]. - The Company may grant share options to eligible participants conferring on them the right to subscribe for a total of up to 104,659,900 shares, representing approximately 7.50% of the total number of Shares in issue as of December 31, 2022[185]. - The maximum number of shares that may be issued upon exercise of all share options must not exceed 30% of the total number of ordinary shares in the capital of the Company[183]. - The New Share Option Scheme will expire on June 17, 2031, unless terminated earlier by a general meeting[191]. - The exercise price for share options must be at least the higher of the closing price on the date of the offer or the average closing price for the five business days preceding the date of grant[190]. Compliance and Governance - The Group complied with all relevant laws and regulations in the PRC and Hong Kong that significantly impact the Group during the year ended December 31, 2022[118]. - The company has confirmed the independence of all independent non-executive directors as per the Listing Rules[151]. - No significant transactions or contracts involving directors were reported during the year ended December 31, 2022[159]. - The directors' remuneration policy is subject to shareholders' approval, with other emoluments determined by the Board based on performance and recommendations from the remuneration committee[157]. Employee and Shareholder Information - The Group has a total of 141 full-time employees as of December 31, 2022, an increase from 132 employees in the previous year[99]. - The Board does not recommend the payment of any final dividend for the current year, with future dividends dependent on the Group's operational results and financial conditions[101]. - The Group's accumulated loss as of December 31, 2022, amounted to approximately HK$472.5 million, an increase from approximately HK$395.5 million in 2021[128]. - Sales to the Group's five largest customers accounted for 69.5% of total sales for the year, with the largest customer contributing 21.9%[129].
北京体育文化(01803) - 2022 - 年度财报