Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 3,724.81 million, representing a 166.84% increase compared to HKD 1,395.89 million in 2021[81]. - The gross profit for the same period was HKD 436.96 million, a slight decrease of 3.30% from HKD 451.85 million in 2021[81]. - The net loss attributable to shareholders was HKD (339.45) million, compared to a profit of HKD 244.64 million in 2021, indicating a significant shift in performance[81]. - The net profit margin was reported at (9.11)%, down from 17.53% in the previous year, reflecting a decline of 26.64 percentage points[81]. - Basic and diluted loss per share was HKD (15.03), compared to earnings of HKD 11.30 in 2021, marking a substantial change in earnings per share[81]. - The company's domestic business revenue decreased by 50.31% year-on-year to 620.20 million HKD due to the impact of domestic pandemic and regulatory issues, but it remained profitable[168]. - The company incurred a loss of 339.12 million HKD in 2022 due to a physical subsidy of 322.96 million HKD for expanding overseas e-commerce sales, compared to a profit of 244.64 million HKD in 2021[167]. Research and Development - R&D expenses decreased by 26.49% from HKD 71.79 million in 2021 to HKD 52.77 million in 2022, primarily due to increased investment in independent site development and digital supply chain for overseas e-commerce in the first half of 2022[2]. - The company is increasing its investment in research and development to enhance algorithm technology and maintain a competitive edge in the digital economy[78]. - The group plans to continue investing in R&D to support the rapid development of its overseas e-commerce sales business, particularly in data analysis and algorithm modeling[176]. - The group aims to increase investment in AIGC (Artificial Intelligence Generated Content) to improve content production efficiency and reduce costs significantly[195]. - The company has developed 190 data models and utilized 2,823 data labels in its algorithm marketing business, reflecting its strong technical capabilities[153]. - The company is accelerating the R&D of its AIGC project, which aims to enhance content production efficiency and reduce costs in various fields[151]. E-commerce and Market Expansion - The company is focused on expanding its overseas e-commerce business and enhancing its digital capabilities[2]. - The overseas e-commerce product sales business generated sales of HKD 3,104.61 million, a significant increase of 1,999.55% compared to HKD 147.87 million in 2021[83]. - The sales volume reached 2,793,265 units, representing a growth of 2,000.74% from 132,966 units in the previous year[83]. - The group recorded overseas e-commerce sales revenue of HKD 3,104.61 million, with a sales volume of 2,793,265 items, indicating significant growth in this segment, particularly in Southeast Asia[169]. - The company aims to create a globally competitive e-commerce platform for electronic consumer goods, targeting both domestic and overseas markets[121]. - The group aims to become the largest e-commerce platform in the Southeast Asian consumer electronics vertical within the next five years, focusing on expanding sales networks and enhancing supply chain systems[196]. Corporate Governance - The group plans to continue enhancing its corporate governance to protect shareholder interests and improve transparency[33]. - The board will continue to review and monitor the company's corporate governance practices to ensure compliance with governance codes and maintain high standards of corporate governance[55]. - The board has adopted a diversity policy to achieve a diverse board composition[34]. - The board is responsible for overseeing all major matters of the company and delegates daily operational and management powers to the management team[56]. Legal and Risk Management - The group had no significant legal, arbitration, or administrative litigation that could adversely affect its business or financial condition as of December 31, 2021, and December 31, 2022[12]. - There is currently no foreign exchange hedging policy in place, but management monitors foreign exchange risks[15]. Marketing and User Engagement - The entertainment content on mobile internet platforms attracts significant user traffic, indicating potential for business growth in areas such as content commercialization and interactive gaming[58]. - The company's algorithm marketing business primarily generates revenue through e-commerce sales on well-known short video platforms, both domestically and internationally[136]. - The company is leveraging its unique IP and content to cultivate proprietary traffic, aiming to reduce external traffic acquisition costs[125]. - The group aims to leverage its data collection and analysis capabilities to enhance marketing effectiveness and efficiency in new media commercial activities[179]. Financial Position - Non-current assets increased to HKD 423.09 million from HKD 155.62 million in 2021, reflecting a growth of 171.5%[85]. - Current assets rose to HKD 2,375.23 million, compared to HKD 2,304.65 million in 2021, indicating a growth of 3.07%[85]. - The group's cost of revenue increased by 248.27% from HKD 944.04 million in 2021 to HKD 3,287.84 million in 2022, mainly due to the rapid growth of overseas e-commerce sales[198]. - The gross margin decreased from 32.37% in 2021 to 11.73% in 2022, primarily due to the lower gross margin contribution from the overseas e-commerce sales business[200].
乐享集团(06988) - 2022 - 年度财报