Financial Performance - Total revenue for the year ended March 31, 2022, was HK$397.9 million, an increase of 18.7% from HK$335.2 million in 2021[15]. - Profit attributable to shareholders increased by 10.0% to HK$42.4 million compared to HK$38.6 million in the previous year[15]. - The Group achieved a revenue increase of 18.6% and a net profit growth of 10.0% for the reporting year[32]. - The total revenue for the year ended March 31, 2022, was HKD 397.9 million, with a year-on-year growth of 10.0%[46]. - Revenue from the Media Content Distribution Business was HK$275.8 million, contributing 69.3% of total revenue, while the Brand Licensing Business generated HK$122.1 million, representing a significant increase of 80.0%[115][116]. - Gross profit margin improved to 49.7% from 49.1% year-on-year[15]. - Gross profit rose by HK$33.2 million or 20.2% to HK$197.6 million, with a gross profit margin of 49.7%[120]. - Selling and distribution expenses increased by approximately 22.1% to HK$54.7 million, driven by higher staff costs and marketing expenses[120]. - Income tax expense rose to HK$2.3 million, with an effective tax rate of 5.1% compared to 3.5% in the previous year[124]. Business Segments - Media Content Distribution Business revenue rose by 3.2% to HK$275.8 million, while Brand Licensing Business revenue surged by 80.0% to HK$122.1 million[15]. - The media content distribution business generated revenue of HKD 275.8 million, representing a year-on-year growth of 3.2%[47]. - The brand licensing business reported revenue of HKD 122.1 million for the year ended March 31, 2022[48]. - The Group acquired 189 licensing brands, a 34% increase from 141 brands in the previous year, significantly boosting revenue in the brand licensing segment[81][83]. - The Group added the pre-school brand Sesame Street, reaching 150 million kids worldwide and having 22.9 million YouTube subscribers[81][83]. Dividends and Shareholder Returns - Proposed final dividend per share increased to HK$0.35 cents from HK$0.20 cents[15]. - A final dividend of HKD 0.35 per share was proposed, bringing the total dividends for the reporting period to HKD 0.85 per share, which is approximately 40% of the Group's profit attributable to shareholders[39]. Market and Growth Opportunities - The Asia-Pacific media and entertainment market is expected to grow at a compound annual growth rate (CAGR) of 7.2% from 2021 to 2026[34]. - The global brand licensing market is projected to grow at a CAGR of 4.1% from 2022 to 2027, with the Asia Pacific region expected to be the fastest-growing segment[34]. - The Group aims for double-digit growth year on year, focusing on expanding content distribution and e-commerce platforms, as well as licensing in digital games and NFTs[105][107]. - The global trendy toy market is projected to grow from US$19.8 billion in 2019 to US$44.8 billion by 2024, presenting significant opportunities for the Group's branded 'trendy toys'[105][107]. Strategic Initiatives - The company aims to expand its Brand Licensing Business further, leveraging the significant growth observed in the past year[15]. - Future strategies include enhancing media content distribution capabilities and exploring new market opportunities[15]. - The Group is expanding its business in the Guangdong-Hong Kong-Macao Greater Bay Area by establishing a new wholly owned subsidiary in Guangzhou[33]. - The Group's long-term strategy focuses on acquiring quality content and brands to enhance performance in the coming years[35]. - The Group plans to collaborate with luxury brands on a regional and global scale, and explore strategic partnerships, alliances, and acquisitions[106][108]. Operational Metrics - As of March 31, 2022, the Group had 600 active media content titles and 189 brands available, reflecting an increase of 67 and 48 respectively from the previous year[35]. - The number of active content titles increased by 12.6% to 600 as of March 31, 2022, compared to 533 in the previous year[63]. - The distribution network has expanded to over 91 platforms across Asia, including Mainland China, with distributed content available in 42 countries and territories[49]. Corporate Governance - The board of directors is committed to maintaining good corporate governance practices and procedures[171]. - The company has complied with the code provisions set out in the CG Code, except for code provision C.2.1[172]. - All directors are subject to retirement by rotation and re-election at the annual general meetings[185]. - Directors have full and timely access to all company information and may seek independent professional advice at the company's expense[195]. Financial Position - Current ratio decreased to 2.4 from 2.7, while cash ratio slightly declined to 0.9 from 1.0[16]. - The company reported no interest-bearing or external borrowings, making the debt to equity ratio not applicable[21]. - Net current assets rose by 5.9% to HK$446.6 million as of 31 March 2022, with current assets at HK$774.7 million, an increase of HK$103.1 million year-on-year[145]. - Cash and bank balances amounted to HK$283.3 million as of March 31, 2022, with a current ratio of 2.4 and a cash ratio of 0.9[152]. Changes in Strategy - The Group plans to scale down the amount originally allocated for licensing rights for Chinese/Asian drama series and live-action films due to the economic impact of COVID-19, reducing focus on sectors heavily affected by the pandemic[157]. - The proposed changes in the use of Unutilised Net Proceeds aim to enhance financial flexibility and align with the current business needs of the Group[162]. - The Group's acquisition strategy has become more cautious, particularly in sectors like aviation, film, and retail, which have been severely impacted by the pandemic[157].
羚邦集团(02230) - 2022 - 年度财报