SINO-ENTERTAIN(HK:06933)2022-04-14 08:45Financial Performance - The total revenue for the year was approximately RMB 104,267,000, a decrease of about 56.6% compared to RMB 240,426,000 for the year ended December 31, 2020[9]. - The company recorded a net loss of approximately RMB 2,950,000, compared to a profit of approximately RMB 56,285,000 for the year ended December 31, 2020[9]. - Revenue from self-developed games was approximately RMB 3,209,000, down from RMB 87,723,000 in the previous year, reflecting a significant decline[13]. - Revenue from third-party game publishing was approximately RMB 92,567,000, compared to RMB 123,458,000 in the previous year, indicating a decrease[14]. - The gross profit for the year was approximately RMB 28,806,000, a reduction of about 74.3% from RMB 111,868,000 in the previous year[16]. - The gross profit margin was 27.6%, down from 46.5% in the previous year, primarily due to the significant decrease in revenue from self-developed games[16]. - Other income increased by approximately 258.6% to RMB 6,817,000, mainly due to one-time government incentives related to the company's listing and development[17]. Expenses and Costs - Employee costs for the year were approximately RMB 8,623,000, down from RMB 14,083,000 in the previous year, attributed to a reduction in staff numbers[19]. - Administrative expenses were approximately RMB 19,741,000, slightly decreased from RMB 20,775,000 in the previous year, mainly due to reduced salaries from fewer employees[21]. - The impairment loss for trade receivables was recognized at approximately RMB 2,163,000, compared to RMB 195,000 in 2020, indicating a significant increase in expected credit losses[22]. - The group confirmed an impairment loss of approximately RMB 429,000 for other receivables, which was not present in the previous year[22]. Assets and Liabilities - As of December 31, 2021, the group's current assets amounted to approximately RMB 254,943,000, slightly up from RMB 253,230,000 in 2020, while cash and cash equivalents decreased to approximately RMB 88,256,000 from RMB 106,196,000[34]. - The group had no bank loans as of December 31, 2021, maintaining a debt-free status similar to the previous year[36]. - The group had no assets pledged or contingent liabilities as of December 31, 2021[39]. Taxation - The income tax expense for the year was approximately RMB 394,000, down from RMB 644,000 in the previous year[32]. - The group’s subsidiaries in the Xinjiang Horgos Economic Development Zone are eligible for a five-year corporate income tax exemption starting from their first profitable year, which applies to the years 2020 and 2021[29]. - The effective tax rate for a Chinese subsidiary recognized as a "High-tech Enterprise" is 15% for the current year, down from 25% previously[26]. Corporate Governance - The company has established a remuneration committee to review the remuneration policy and structures for directors and senior management[116]. - The company has adopted a diversity policy for board members, ensuring a mix of experience and expertise[191]. - The independent non-executive directors have confirmed their independence and compliance with the relevant listing rules[169]. - The company has implemented corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[197]. Share Capital and Dividends - The company does not recommend any final dividend for the year, consistent with the previous year[55]. - The available distributable reserves as of December 31, 2021, were approximately RMB 104.4 million, unchanged from the previous year[56]. - As of December 31, 2021, the company had 400,000,000 shares issued, with significant shareholdings reported[88]. - The total issued shares increased to 409,167,630 shares after the issuance of 9,167,630 new shares under the share incentive plan[130]. Future Outlook - Future revenue is expected to decline due to delays in the pre-approval process by the National Press and Publication Administration, impacting game launches[49]. - The company is optimistic about opportunities in developing blockchain games and decentralized financial service platforms overseas[10]. Operational Developments - The group has engaged third-party contractors to expedite game development and improve quality[49]. - The group did not have any significant acquisitions or disposals during the year, but completed the acquisition of 49% of SimpliFi for HKD 1,442,377[40]. - The company has not established or maintained any management contracts for its overall or any major part of its business during the year[114]. Board and Management - The board consists of seven members, including two executive directors and three independent non-executive directors[146]. - The company held seven board meetings during the fiscal year ending December 31, 2021, with all directors indicating their attendance[162]. - The company has implemented appropriate insurance coverage for directors and senior management against legal actions arising from corporate activities[167]. - The company’s chairman and CEO roles are separated, with Mr. Sui Jia Heng as chairman and Mr. Li Tao as CEO, ensuring effective leadership and management[168].