GAMEONE(HK:08282)2022-03-31 08:24Financial Performance - The company recorded a net profit of approximately HKD 600,000 for the fiscal year ending December 31, 2021, compared to a net loss of approximately HKD 10.1 million in the same period of 2020, indicating a significant improvement in profitability[11]. - Revenue increased by approximately 64.7% from about HKD 51.3 million in 2020 to approximately HKD 84.5 million for the fiscal year ended December 31, 2021, primarily due to the launch of licensed mobile games[22]. - The gross profit rose approximately 207.5% from about HKD 10.7 million in 2020 to approximately HKD 32.9 million in 2021, with a gross margin of approximately 38.9%, up from 20.9% in the previous year[27]. - The company reported a total comprehensive income of HKD 601,000 for the year, compared to a loss of HKD 11,086,000 in 2020[194]. - Profit before tax for the same period was HKD 556,000, a significant recovery from a loss of HKD 10,070,000 in 2020[194]. Revenue Sources - The increase in game revenue was primarily driven by the successful launch of licensed mobile games "Gangster M" and "Field Storm" in the second and third quarters of 2021[11]. - The company recorded a significant increase in revenue from licensed games, which accounted for 75.4% of total revenue in 2021, compared to 69.7% in 2020[23]. Strategic Plans - The company plans to establish a headquarters in Hangzhou, Zhejiang Province, China, to leverage the region's technology talent pool and expand revenue levels in the mainland market[12]. - The company aims to maintain its leading market share in Hong Kong and Taiwan while expanding its presence in the mobile gaming industry through organic growth and strategic partnerships[12]. - The company intends to selectively invest in game developers, technology providers, and other gaming operators to create complementary business effects and expand its mobile gaming offerings[12]. - The company plans to expand its market share in the mobile gaming industry through organic growth and strategic partnerships with game developers and distributors[18]. - The company aims to introduce more high-quality licensed games and strengthen its market positioning and marketing efforts[18]. Research and Development - Plans are in place to establish a research and development center in Hangzhou, recognized by the local government, to keep pace with rapid technological advancements in the gaming industry[13]. - The company will increase hardware and software investments at the R&D center to raise entry barriers for future competitors and maintain a competitive edge[13]. Corporate Governance - The company emphasizes high levels of corporate governance to maintain shareholder trust and long-term value creation[76]. - The company has complied with all applicable corporate governance code provisions as of December 31, 2021, except for the deviation noted in the "Chairman and CEO" section[77]. - The board of directors has adopted a code of conduct for securities trading, ensuring compliance with GEM listing rules, with no violations reported during the review year[78]. - The company has appointed three independent non-executive directors, meeting the requirement of at least one with appropriate professional qualifications or financial management expertise[82]. - The company believes that having the same individual serve as both chairman and CEO since January 7, 2022, provides strong and consistent leadership[89]. Shareholder Relations - The company expressed gratitude to shareholders and business partners for their support and feedback, emphasizing a commitment to improving services and maximizing returns for shareholders[15]. - The company has established multiple channels for communication with shareholders and stakeholders, enhancing investor relations[140]. - The company adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[136]. Financial Position - Cash and cash equivalents as of December 31, 2021, were approximately HKD 35.4 million, a slight decrease from HKD 38.2 million as of December 31, 2020[35]. - The total assets as of December 31, 2021, amounted to HKD 54,742,000, slightly up from HKD 53,762,000 in 2020[194]. - The total liabilities increased to HKD 20,090,000 from HKD 19,711,000 in 2020, reflecting a rise of 1.9%[194]. - The net current assets were HKD 26,623,000, down from HKD 29,516,000 in 2020, indicating a decrease of 9.7%[194]. - As of December 31, 2021, the company's debt-to-asset ratio was approximately 36.7%, unchanged from December 31, 2020[41]. Employee and Management - The total employee cost for the year ended December 31, 2021, was approximately HKD 13.2 million, down from HKD 17.5 million in the previous year[48]. - The company employed 49 staff as of December 31, 2021, a decrease from 53 staff as of December 31, 2020[48]. - Liu Yi was appointed as Executive Director and CEO on January 7, 2022, overseeing overall strategic planning and general management[63]. - Huang Jianying joined as Executive Director on December 16, 2021, responsible for general management oversight[64]. Risk Management - The company established an enterprise risk management framework in 2016, following the COSO framework to manage various risks[132]. - A risk register is maintained to track identified major risks and actions taken to mitigate them, with annual assessments conducted[133]. - The board is responsible for maintaining effective internal controls and risk management systems, which are reviewed annually[128]. Environmental Compliance - The company has adopted green initiatives and measures in its daily operations, including resource recycling and energy-saving practices[139]. - The company has complied with all relevant environmental laws and regulations during the year ended December 31, 2021[141].