Market Overview - GEM provides a market for small and medium-sized companies, which generally carry higher investment risks compared to companies listed on the main board[3]. - Securities traded on GEM may experience greater market volatility and lower liquidity compared to those on the main board[3]. - In 2021, the total sales of the Chinese lottery industry increased by 11.8% compared to 2020, indicating a strong rebound[33]. - The online gaming market in India grew by 18% in 2020, reaching INR 77 billion (approximately USD 10.3 billion), with projections to reach INR 155 billion (approximately USD 20.7 billion) by 2023, reflecting a compound annual growth rate of 27%[170]. - In 2021, China's total retail sales of consumer goods reached approximately RMB 44 trillion, with a year-on-year growth of 12.5%[171]. Company Strategy and Business Segments - The company has diversified its business into three main categories: lottery hardware sales, gaming and entertainment, and non-lottery hardware sales[20]. - The company aims to enhance its business value by developing a diversified gaming and entertainment platform that integrates unique social games and sports entertainment content[22]. - The group operates in three main business segments: lottery hardware sales, lottery distribution through physical channels, and non-lottery hardware sales[166]. - The group has begun supplying non-lottery hardware products, such as POS terminals, to the retail sector in China starting in 2021[166]. - The company plans to evaluate overseas opportunities and establish strategic partnerships with local leaders in Asia to globalize its business[168]. Corporate Governance - The report confirms that the information provided is accurate and complete, with no misleading or fraudulent elements[3]. - The board of directors collectively and individually assumes full responsibility for the report's content[3]. - The company has adopted corporate governance practices to enhance transparency and protect shareholder interests, including the establishment of various committees[39]. - The board composition includes a balance of independent non-executive directors, ensuring that at least one-third of the board is independent[39]. - The company has committed to regular communication with shareholders, including annual general meetings and timely announcements of financial performance[40]. Financial Performance - The group's revenue for the review year was approximately HKD 253,200,000, an increase of about 56.7% compared to HKD 161,600,000 in 2020[183]. - Revenue growth was primarily driven by an increase in lottery hardware sales by approximately HKD 94,800,000 and an increase in lottery agency services by approximately HKD 18,400,000[183]. - Operating loss for the year was approximately HKD 65,800,000, a reduction from HKD 131,100,000 in 2020, mainly due to increased total revenue and cost control measures[184]. - The group's net loss for the year was approximately HKD 63,100,000, a decrease of about 42.4% from HKD 109,500,000 in 2020[184]. - As of December 31, 2021, the group maintained a strong financial position with a net cash balance of approximately HKD 936,700,000 and a current ratio of about 12.2[186]. Risk Management and Internal Controls - The Risk Management and Internal Control Committee is responsible for executing risk management and internal control systems, reviewing all related financial, operational, and compliance controls[72]. - The internal audit function is deemed effective and sufficient, with no major deficiencies reported during the annual review[79]. - The company has implemented a fraud reporting mechanism allowing employees to confidentially report concerns related to financial reporting and risk management[77]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems, confirming their adequacy and compliance with GEM listing rules[79]. - The company has established policies to prevent bribery, extortion, fraud, and money laundering, ensuring compliance with various laws and regulations[144]. Employee and Diversity Policies - The company has not set specific plans or measurable targets for gender diversity among employees, including senior management, as recruitment is based on qualifications and experience rather than gender[91]. - The group promotes equal opportunities and prohibits discrimination based on age, gender, disability, religion, marital status, pregnancy, sexual orientation, and nationality[135]. - The group has implemented a diversity policy for its board and overall workforce, considering various elements such as gender, age, and nationality[136]. - The company has established comprehensive employment policies that consider government labor laws, including parental leave and additional medical insurance for employees[119]. - The company encourages the use of public transportation for business-related travel to further reduce environmental impact[130]. Sustainability and Community Engagement - The company emphasizes responsible contributions to the lottery and online gaming industry, actively participating in sports development and charitable activities[104]. - The sustainability management goal is to promote business development while managing the environmental and social impacts of the group's operations[108]. - The company has implemented energy efficiency measures, including encouraging employees to turn off electrical devices when leaving the office[150]. - During the COVID-19 pandemic, the company donated 33,000 masks to various sports bureaus to support local communities[145]. - The group actively participates in community investment, focusing on sports development and charitable activities, although donations were zero in the review year compared to HKD 197,000 in 2020[165]. Acquisitions and Partnerships - The company announced a conditional sale agreement on September 10, 2021, to acquire 100% of the equity of Macau Tong Holdings Limited for a maximum cash consideration of HKD 778 million[194]. - The completion of the acquisition will result in the target company becoming a wholly-owned subsidiary of the company, with its financial statements consolidated into the company's financial reports post-completion[194]. - The new cooperation agreement with Alibaba China will last for two years, from January 1, 2022, to December 31, 2023, focusing on selling sports and welfare lottery products through Alibaba's retail digital procurement platform[198]. - The group plans to continue investing additional resources into Paytm First Games to support its future expansion[179]. - The group is committed to improving its technological infrastructure to support its gaming and lottery entertainment initiatives[182].
亚博科技控股(08279) - 2021 - 年度财报