Financial Performance - The company reported a revenue of HKD 46,774,000 for the year ended June 30, 2022, compared to HKD 209,261,000 for the previous year, representing a decrease of approximately 77.7%[6] - Gross profit for the year was HKD 1,821,000, down from HKD 15,788,000 in the previous year, indicating a decline of about 88.5%[6] - The company incurred a loss before tax of HKD 36,150,000, compared to a loss of HKD 43,863,000 in the previous year, showing an improvement of approximately 17.5%[8] - The net loss attributable to equity holders was HKD 36,150,000, compared to HKD 44,130,000 in the previous year, reflecting a reduction of about 18.1%[8] - The company reported a basic loss per share of HKD 7.49, an improvement from HKD 10.51 in the previous year[8] - Total comprehensive income for the year was HKD 3,466,000, compared to HKD 11,066,000 in the previous year, indicating a decrease of approximately 68.7%[8] - The company recognized impairment losses of HKD 7,963,000, compared to HKD 21,432,000 in the previous year, representing a decrease of about 62.8%[6] - The company reported a significant increase in cash and cash equivalents from HKD 1.45 billion in 2021 to HKD 19.92 billion in 2022, a growth of approximately 1275.6%[10] - The group reported a total revenue of approximately HKD 46.8 million for the period, a decline of about 77.7% compared to HKD 209.3 million for the same period last year[53] - The group recorded a net loss of approximately HKD 36 million for the year, compared to a loss of HKD 44.1 million in the previous year[60] Assets and Liabilities - The company's total liabilities decreased to HKD 114,000,000 from HKD 1,128,000,000 in the previous year, reflecting a significant reduction[8] - The company's total assets decreased from HKD 131.77 billion in 2021 to HKD 116.26 billion in 2022, representing a decline of approximately 11.8%[10] - The company's total liabilities decreased from HKD 44.12 billion in 2021 to HKD 28.36 billion in 2022, a reduction of approximately 35.6%[10] - The company has a total of HKD 4.32 billion in non-current assets as of June 30, 2022, compared to HKD 18.40 billion in the previous year, indicating a decrease of approximately 76.5%[10] - The estimated provision for uncollectible trade receivables increased to HKD 23,032,000 in 2022 from HKD 15,069,000 in 2021[31] - Trade payables were reported at HKD 7,907,000 for the year[32] Income and Expenses - The company reported other income of HKD 4,000,000, compared to HKD 2,311,000 in the previous year, indicating an increase of approximately 73.1%[6] - Interest income from bank deposits amounted to HKD 5 million, while interest income from loans receivable was HKD 1,834 million[23] - Total miscellaneous income was reported at HKD 1,067 million, contributing to overall revenue[23] - The company’s financial expenses included HKD 1,128 million in interest expenses related to borrowings[23] - The cost of sales for the group was approximately HKD 45 million, down about 76.8% from the previous year's cost of sales[54] - The gross profit margin for the period was approximately 3.9%, a decrease of 3.6% from the previous year's margin of 7.5%[54] - Administrative expenses were HKD 24,120,000, down from HKD 27,108,000 in the previous year, showing a reduction of approximately 10.9%[6] - Financial costs reduced significantly from HKD 1.1 million in the previous fiscal year to HKD 0.1 million[58] Shareholder Information - The company did not declare or recommend any dividends during the year, consistent with the previous year[27] - The company has no issued potential ordinary shares, thus no diluted loss per share is presented for the two years[28] - The company issued 68,000,000 shares at a subscription price of HKD 0.25 per share, raising a total of HKD 17,000,000[39] - The net proceeds from the share issuance are approximately HKD 16,955,000, intended for general working capital and future business development[39] - The company does not recommend any final dividend for the year ending June 30, 2022, maintaining the previous year's dividend at zero[43] Business Operations and Strategy - The company is focused on expanding its digital asset business and enhancing its mobile payment technology support services[13] - The group primarily engages in internet advertising agency services and digital asset business, expanding its overseas cryptocurrency operations in the second half of 2021[45] - The subsidiary, Wanxing Network, develops the overseas internet advertising market, providing global advertising services through platforms like Facebook and Google[46] - The company has a professional management team in the digital asset sector, focusing on cryptocurrency mining equipment and market supply-demand information[47] - The group plans to expand its internet advertising services and explore new digital asset business opportunities, including investments in global supercomputing centers[50][51] - The group aims to leverage opportunities in the overseas internet advertising market and digital transformation in rural China and new retail sectors[50] Compliance and Governance - The company has adopted corporate governance standards in compliance with GEM listing rules, effective from January 1, 2022[79] - As of June 30, 2022, the company confirmed compliance with the GEM listing rules and corporate governance standards[81] - The board of directors has established a set of conduct rules for securities trading, adhering to the standards set forth in GEM listing rules[78] - The company has not identified any conflicts of interest involving directors or major shareholders in competitive businesses[75] Audit and Reporting - The annual performance reported is based on preliminary assessments and has not yet received approval from the auditors, with the final audited results expected to be published by October 30, 2022[88] - The audit committee, consisting of independent non-executive directors, has reviewed the financial statements and accounting principles adopted by the company[84] - The company anticipates that the audit process will be completed by October 30, 2022, and will issue a separate announcement regarding any significant differences in the audited results compared to the unaudited figures[88] - The financial data presented in the announcement is unaudited and subject to adjustments[88] - The company plans to distribute the audited annual report, containing all required information under GEM listing rules, by November 30, 2022[89] Impact of COVID-19 - The company faced significant adverse impacts on its business activities and auditing work due to strict COVID-19 control measures implemented by the Chinese government, affecting operations until July 2022[85] - The ongoing COVID-19 pandemic has caused delays in obtaining confirmations from customers, suppliers, and banks, impacting the audit process[87] - The company has experienced restrictions on movement across various subsidiaries, significantly hindering business progress and audit coordination[85] - The audit process for assessing impairment of certain assets has not been completed due to the pandemic, involving significant management judgment and estimates[87] - The company’s financial team gradually resumed auditing work with Zhongzheng Tianheng starting in July 2022[85]
万星控股(08093) - 2022 Q4 - 年度财报