Financial Performance - For the fiscal year 2021, the revenue from the electronic gaming equipment business decreased by approximately 81.1% to about HKD 7.6 million from approximately HKD 40.5 million in the fiscal year 2020[12]. - The revenue from technical sales and distribution for electronic gaming equipment dropped by about 86.4%, while consulting and technical service revenue decreased by approximately 27.2%[12]. - The overall gross profit fell by approximately 93.2% to about HKD 0.9 million compared to approximately HKD 12.5 million in the previous fiscal year[12]. - The company recorded a loss of approximately HKD 23.1 million for the fiscal year 2021, compared to a loss of about HKD 32.0 million in the fiscal year 2020[12]. - The total revenue of the electronic gaming equipment business for the fiscal year was approximately HKD 7.5 million, a decrease of about 81.5% compared to approximately HKD 40.5 million in the previous fiscal year[21]. - The technical sales and distribution revenue for electronic gaming equipment was approximately HKD 5.0 million, down approximately 86.4% from about HKD 36.9 million in the previous fiscal year[21]. - The consulting and technical services revenue was approximately HKD 1.8 million, a decrease of about 27.2% from approximately HKD 2.5 million in the previous fiscal year[21]. - The overall gross profit for the electronic gaming equipment business was approximately HKD 0.9 million, with a gross margin of about 12.3%, compared to a gross profit of approximately HKD 12.5 million and a gross margin of about 31.0% in the previous fiscal year[21]. - The net loss after tax for the fiscal year 2021 was approximately HKD 23.1 million, an improvement from a net loss of approximately HKD 32.0 million in 2020[40]. - Operating expenses decreased by approximately 10.3% to about HKD 18.7 million in 2021 from approximately HKD 20.8 million in 2020[39]. Smart Vending Machine Business - The smart vending machine business generated revenue of HKD 0.15 million during its initial trial phase, with 40 machines installed in Macau and 2 in Zhuhai[12]. - The smart vending machine business commenced operations in the second half of the fiscal year 2021, targeting local consumers and tourists in Macau and the Greater Bay Area[25]. - The company has customized vending machines for various local products, including a collaboration with a well-known brand for a dedicated vending machine[25]. - The company has installed various electronic payment systems in its vending machines, including WeChat Pay and Alipay, to enhance consumer convenience[25]. - The smart vending machine business generated revenue of HKD 0.15 million, with a gross loss of HKD 0.74 million, resulting in a gross loss margin of 50.8%[161]. - The company is optimistic about the growth of its smart vending machine business in Macau and the Greater Bay Area, anticipating positive profit contributions in the coming years[35]. Market Opportunities and Strategies - The company aims to strengthen its position in the growing consumer market of the Greater Bay Area through its dual business model of electronic gaming equipment and smart vending machines[11]. - The company is exploring a digital opportunity through a project named "Macaoverse," aimed at creating a virtual Macau experience for tourists and players[16]. - The company plans to share more details about the "Macaoverse" project in the first quarter of 2022[16]. - The management remains optimistic about the recovery of the mass gaming market in Macau once the pandemic subsides, positioning the electronic gaming equipment business to benefit from this recovery[20]. - The company plans to focus on operations in Macau and selectively sell electronic gaming equipment to Southeast Asian countries[31]. - The company believes that the demand for electronic gaming equipment will remain strong due to increased automation and social distancing measures in casinos[32]. - The company is conducting research and testing on a project called "Macaoverse" aimed at creating a Macau metaverse for tourists and players, with results expected to be announced in Q1 2022[45]. Corporate Governance - The management team emphasized the importance of corporate governance, adhering to the GEM Listing Rules to ensure accountability and transparency[80]. - The board consists of six directors, with independent non-executive directors accounting for 50% of the board members[88]. - The board held four meetings during the year, including the approval of the audited consolidated financial statements for the fiscal year ending December 31, 2020[94]. - The company has adopted a board diversity policy, emphasizing the importance of diverse perspectives in board appointments[99]. - Each director participated in continuous professional development courses during the year, covering topics related to corporate governance and director responsibilities[93]. - The company ensures that all directors have access to independent professional advice at the company's expense when necessary[84]. - The board is responsible for overseeing the management of the group's business affairs and overall performance[83]. - The management is tasked with executing the business plans and strategies adopted by the board[83]. - The company has established appropriate insurance arrangements to cover directors against liabilities incurred in the performance of their duties[91]. - The independent auditor for the year was appointed as RSM Hong Kong, ensuring the integrity of financial reporting[125]. Risk Management - The CFO highlighted the importance of risk management, stating that the company has strengthened its internal controls to mitigate potential financial risks[80]. - The board believes that the risk management and internal control measures are adequate and effective[132]. - The board will review the risk management and internal control systems annually[133]. - The independent auditor has conducted an annual review of the adequacy and effectiveness of the risk management and internal control systems[132]. - The company has adopted various internal guidelines and written policies to monitor and mitigate risks associated with its business[129]. - The company secretary has participated in over 15 hours of relevant continuing professional development training during the year[136]. - The company has established procedures for handling and disclosing inside information in compliance with the GEM Listing Rules[134]. - The board is responsible for assessing the nature and extent of risks the company is willing to take to achieve its strategic objectives[129]. - The company will consider hiring internal control consultants to review the internal control system annually[129]. Share Options and Dividends - The board has adopted a share option scheme but has not implemented it during the fiscal year 2021 and does not recommend the distribution of dividends for the year[13]. - No share options have been granted or issued as of the report date, and there are no unexercised options as of December 31, 2021[200]. - The company has a stock option plan aimed at rewarding participants for their contributions, with the board having discretion over the terms of the options granted[196]. - The company has adopted a dividend policy to allow shareholders to share in the profits while reserving sufficient reserves for future development[100]. - The board of directors considers various factors when determining dividend declarations, including the company's strategy, business cycle, operational performance, and financial condition[100]. - No dividends were declared for the fiscal year, consistent with the previous fiscal year[163]. - The board has resolved not to recommend any final dividend for the fiscal year[164]. Employee and Operational Insights - As of December 31, 2021, the group had a total of 44 employees, an increase from 40 employees in 2020, with employee costs approximately HKD 13.5 million, unchanged from 2020[47]. - The group reported a net foreign exchange loss of HKD 96,103 for the fiscal year 2021, up from HKD 4,461 in the fiscal year 2020, attributed to unfavorable exchange rate fluctuations of USD against HKD[54]. - The company has no debt as of December 31, 2021, and its current assets net value was approximately HKD 30.6 million[41]. - The company has no significant contingent liabilities as of December 31, 2021, and December 31, 2020[46]. - The company has no mortgages on its assets as of December 31, 2021, and December 31, 2020[49]. - The company reported no interest expenses related to capital expenditures for the fiscal year, consistent with the previous fiscal year[178]. - The company has confirmed the independence of all independent non-executive directors in accordance with the GEM Listing Rules[188]. - The company has a competitive compensation policy to attract and retain outstanding employees, with regular reviews of remuneration packages[191].
亚洲先锋娱乐(08400) - 2021 - 年度财报