Financial Performance - For the fiscal year ending March 31, 2023, the company reported revenue of approximately RMB 260.3 million, an increase of 4.3% compared to RMB 249.7 million for the fiscal year ending December 31, 2021[8]. - The company recorded a loss of RMB 108.7 million for the fiscal year 2022/2023, compared to a loss of RMB 102.8 million in the previous fiscal year[13]. - The company recorded revenue of RMB 260.3 million for the fiscal year 2022/2023, an increase of 4.3% from RMB 249.7 million in the previous year[23]. - Gross profit increased by 20.6% to RMB 55.0 million, with a gross margin rising from 18.3% to 21.1% due to revenue growth outpacing cost increases[26]. - Other income rose by 30.6% to RMB 39.8 million, primarily due to an increase in software tax rebates[27]. - Sales and marketing expenses decreased by 11.1% to RMB 59.4 million, attributed to reduced employee compensation payments[30]. - Research and development expenses decreased by 37.0% to RMB 19.6 million, compared to RMB 31.1 million in the previous year[32]. - The company's current assets amounted to RMB 444.5 million, while current liabilities were RMB 399.8 million, resulting in a capital debt ratio of 88.6%[48]. - The company's non-current assets decreased to RMB 102.8 million from RMB 158.9 million in the previous year, mainly due to a reduction in intangible assets[43]. - Trade and other receivables impairment losses increased to RMB 20.5 million from RMB 7.6 million in the previous year, primarily due to expected credit losses[34]. - The company's employee compensation expenses for the fiscal year 2022/2023 were approximately RMB 93.8 million, compared to RMB 111.2 million in the previous year[57]. Corporate Governance - The company has complied with all relevant laws and regulations without any significant violations during the review period[18]. - The company has established a robust governance structure with independent directors serving on key committees[77][84]. - The company is committed to maintaining high levels of corporate governance to build trust with shareholders and stakeholders, which is essential for long-term value creation[97]. - The board of directors has adopted a diversity policy aimed at enhancing the quality of company performance, considering various measurable aspects such as gender, age, and professional experience[104]. - The board will take measures to strengthen diversity and aims to appoint at least one female director by December 31, 2024[109]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and adequate oversight for the interests of the company and its shareholders[112]. - The company has complied with the corporate governance code as per the GEM listing rules during the reporting period[98]. - The management team includes experienced professionals with backgrounds in technology and corporate governance, enhancing operational efficiency[100]. - The company secretary has extensive experience in corporate secretarial matters and holds multiple professional qualifications[93]. - The board is responsible for formulating business strategies, reviewing performance, and approving financial statements and budgets[100]. - The company has not disclosed any significant relationships among board members that could affect governance[111]. - The chairman and CEO roles are currently held by the same individual, which the board believes enhances operational efficiency despite deviating from governance code recommendations[112]. - The company has appointed Dr. Li Wanshou, Mr. Frank Christiaens, and Mr. Li Youliang as directors for a term of three years starting from June 28, 2021, May 22, 2022, and March 1, 2023, respectively[113]. - All independent non-executive directors have confirmed their independence according to GEM Listing Rules, and the board believes they meet the independence criteria[114]. - The board has established three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with clear written terms of reference[122]. - The Remuneration Committee reviewed the remuneration of directors and senior management during the 2022/2023 period and deemed it fair and reasonable[123]. - The Nomination Committee evaluated the composition of the board and the independence of non-executive directors, recommending new director appointments based on objective criteria[124]. - The company encourages continuous professional development for all directors, who participated in training courses and relevant materials during the 2022/2023 period[119]. - The company has made appropriate insurance arrangements for directors and senior management against legal claims arising from their duties[118]. - The board has confirmed compliance with the trading guidelines for directors as per GEM Listing Rules, ensuring no violations occurred during the reporting period[117]. - The board considers various aspects of diversity, including gender, age, and industry experience, when appointing new directors[126]. - The company conducts annual reviews of its insurance arrangements for directors to ensure adequate coverage[118]. - The audit committee was established on May 23, 2016, with a focus on reviewing and monitoring the integrity of financial information and ensuring compliance with accounting standards[127]. - During the fiscal year 2022/2023, the audit committee reviewed the consolidated financial statements and internal control systems, concluding that they were prepared in accordance with applicable standards and regulations[127]. - The company held 9 board meetings and the audit committee held 6 meetings during the fifteen months ending March 31, 2023[130]. - The annual remuneration for senior management included 5 individuals earning between HKD 1,000,001 and HKD 1,500,000, compared to 2 individuals in the previous year[134]. - The external auditor, Deloitte, received a fee of RMB 1,380,000 for audit services and RMB 150,000 for non-audit services during the fiscal year 2022/2023[138]. - The company emphasizes the importance of risk management and internal control systems, which are regularly reviewed to ensure effectiveness[140]. - The internal audit function is executed by the finance department, which reports directly to the CEO and monitors various operational areas continuously[141]. - The company has established internal policies to regulate the handling and disclosure of insider information in compliance with relevant regulations[141]. - The audit committee consists of independent non-executive directors, ensuring that at least one member has appropriate professional qualifications or financial management expertise[127]. - The company has implemented a performance incentive scheme for directors and employees based on individual and group performance[132]. - The company has adopted a shareholder communication policy to ensure timely and unbiased access to information for shareholders and potential investors[146]. - During the fiscal year 2022/2023, the board of directors fulfilled its responsibilities regarding corporate governance policies and compliance with legal regulations[144]. - There were no significant changes to the company's articles of association during the fiscal year 2022/2023[145]. Business Strategy and Development - The company aims to continue developing and investing in innovative products and services to enhance its core digital video technology[9]. - The company is exploring potential business opportunities, including asset sales, acquisitions, and business rationalization, to enhance long-term growth potential[16]. - The company emphasizes the importance of demand-driven and responsive R&D work to meet customer needs in the digital video technology sector[16]. - The company plans to optimize and improve existing product performance while reducing costs[9]. - The company is actively seeking to expand revenue sources and enhance shareholder value through potential business opportunities[9]. - The company plans to enhance and develop its service business to create recurring high-profit revenue streams, focusing on co-producing media content with rights holders[63]. - The company aims to leverage its core digital video technology to develop and invest in innovative products and services, particularly in collaboration with major telecom operators[66]. - The company intends to pursue strategic investments and acquisitions to strengthen its solution and service offerings, particularly in the fragmented Chinese post-production industry[67]. - The long-term goal is to become a leading integrated digital video technology, service, and media company in China, focusing on market share expansion and service enhancement[61]. - The company has over 20 years of experience in the digital video technology industry[69]. - The executive team includes individuals with extensive backgrounds in broadcasting and technology, such as Mr. Pang, who has approximately 20 years of experience in the broadcasting industry[73]. - The company is focused on expanding its market presence and enhancing its technological capabilities through new product development and strategic initiatives[69][73]. - The management team has a strong academic background, with degrees from prestigious institutions such as Peking University and the University of Leuven[69][80]. - The company has a commitment to innovation, as evidenced by the recognition received by its executives for technological advancements[73][78]. - The company is actively involved in various social organizations, indicating a commitment to corporate social responsibility[69]. Employee and Workplace Environment - The company employs 388 full-time employees as of March 31, 2023, a decrease from 530 full-time employees as of December 31, 2021[57]. - The company has no significant foreign currency risk as most transactions are settled in RMB, and it did not enter into any hedging arrangements during the fiscal year 2022/2023[55]. - The company has no significant contingent liabilities or major legal proceedings as of March 31, 2023[58]. - The total number of employees is 422, with 289 males and 133 females, and the majority (304) are aged between 30 to 50 years[163]. - The employee turnover rate is notably high for males at 56.6% and lower for females at 22.3%, indicating a significant gender disparity in retention[164]. - Training participation rates show that 11.7% of male employees and 4.6% of female employees received training during the reporting period[168]. - The company is committed to creating a fair and equitable work environment, with no tolerance for discrimination or harassment[162]. - The company emphasizes the importance of employee health and safety, adhering to relevant laws and regulations without any significant non-compliance issues reported during the period[160]. - The company has not reported any incidents of child labor or forced labor, strictly adhering to labor laws and regulations[167]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development as a key component of its business strategy, aiming to create long-term value for stakeholders[150]. - The environmental, social, and governance (ESG) report covers the period from January 1, 2022, to March 31, 2023, detailing the company's ESG impacts and policies[151]. - The board of directors is responsible for guiding and overseeing the implementation of the company's ESG strategies[150]. - The company has not encountered any significant legal or regulatory non-compliance issues related to employment and labor practices during the reporting period[157]. - The company maintains multiple communication channels with shareholders, including annual and interim reports available in printed form and on its website[146]. - The company encourages feedback from investors and the public, providing various means for inquiries and suggestions[146]. - The company has established a systematic process for identifying and reporting insider information to ensure compliance with securities regulations[143]. - The company generated carbon emissions of 10.8 tons from vehicle usage during the reporting period, with plans to consider more environmentally friendly fuel options[175]. - The company has implemented measures to promote energy efficiency and waste management, aiming to minimize negative environmental impacts[172]. - There were no reported non-compliance incidents with environmental laws and regulations during the reporting period[172]. - The company has not reported any significant harmful waste generation during the reporting period[176]. - The company has implemented energy-saving measures, including zoned lighting and maintaining indoor temperatures between 25 to 26 degrees Celsius[176]. - The company has not established any water conservation targets as water consumption is not significant[181]. - The company has not encountered any issues in obtaining water sources during the reporting period[182]. - The company emphasizes the importance of supplier selection based on environmental and social responsibility performance[192].
中国数字视频(08280) - 2023 - 年度财报