Business Performance - The company experienced a significant decline in business due to the COVID-19 pandemic, with a reduction in employee count from 44 at the end of 2021 to 35 by the end of 2022[12]. - The overall gross profit of the group decreased from approximately HKD 0.9 million in the 2021 fiscal year to a gross loss of approximately HKD 0.1 million in the 2022 fiscal year[16]. - The group recorded a loss of approximately HKD 14.7 million in the 2022 fiscal year, an improvement from a loss of approximately HKD 23.1 million in the 2021 fiscal year, indicating a reduction in losses by about 36.5%[16]. - The company's revenue for the fiscal year 2022 increased by approximately 37.7% to about HKD 10.5 million, compared to approximately HKD 7.6 million in 2021[37]. - The smart vending machine business generated revenue of approximately HKD 0.9 million with a gross loss of about HKD 0.45 million during the fiscal year[29]. - The total revenue from the electronic gaming equipment business was approximately HKD 9.6 million, representing an increase of about 28.1% compared to approximately HKD 7.5 million in the 2021 fiscal year[22]. - Revenue from technical sales and distribution of electronic gaming equipment was approximately HKD 6.1 million, up about 21.2% from approximately HKD 5.0 million in the previous year[22]. - Revenue from consulting and technical services increased by approximately 67.9%, reaching about HKD 3.0 million compared to approximately HKD 1.8 million in the 2021 fiscal year[22]. - The overall gross profit margin for the electronic gaming equipment business was approximately 3.3%, down from approximately 12.3% in the 2021 fiscal year[22]. - The total gaming revenue in Macau for 2022 was MOP 42.55 billion, a year-on-year decline of 51.4%, marking the lowest annual total since 2004[26]. - The number of visitors to Macau in 2022 was 5.70 million, a decrease of 26.0% year-on-year, representing the lowest annual figure since 1999[26]. Cost Management - Monthly operating expenses were reduced from HKD 1.1 million in December 2021 to HKD 0.95 million in December 2022, following a 50% salary cut for three executive directors for six months[13]. - Operating expenses decreased by approximately 13% to about HKD 16.2 million in 2022, down from approximately HKD 18.7 million in 2021[39]. - The total capital expenditure for the vending machines was approximately HKD 2.7 million[29]. Future Outlook - The electronic gaming equipment and smart vending machine businesses were severely impacted, but the company is optimistic about recovery as travel restrictions ease[12]. - The company plans to focus on optimizing vending machine locations and reducing rental costs, while concentrating on best-selling products like the KATFFEE coffee vending machine[13]. - The company anticipates improvement in its overall smart vending machine business as the number of visitors and consumer spending in Macau is expected to rebound next year[13]. - The group plans to focus on restoring profitability in the coming year and is optimistic about the recovery of the gaming market in Macau[16]. - Several casinos have begun consulting the company for new electronic gaming equipment orders, indicating potential future demand[15]. Corporate Governance - The company is committed to good corporate governance to enhance shareholder value[78]. - The company has adopted the GEM Listing Rules and Corporate Governance Code applicable to the financial year ending December 31, 2022[79]. - The board of directors is responsible for overseeing the group's business management and overall performance, ensuring necessary financial and human resources are in place to achieve the group's goals[81]. - The board consists of six directors, with independent non-executive directors making up 50% of the board members, ensuring a strong independent element for effective judgment[88]. - The company emphasizes continuous growth and sustainable development, focusing on innovation and advanced, reliable products to meet societal needs[84]. - The board aims to maintain a balance between continuity of experience and renewal during the board's term[94]. - The company has established a whistleblowing policy to encourage employees to report misconduct, ensuring confidentiality and protection against retaliation[104]. - The company maintains a zero-tolerance approach towards corruption and has implemented policies to prevent bribery and fraud[105]. Risk Management - The company has established policies and procedures for risk management and internal control, with the board overseeing their effectiveness[145]. - The board believes that the risk management and internal control measures are adequate and effective for the current business environment[148]. - The external auditor has conducted an annual review of the company's risk management and internal control systems, including financial, operational, compliance, and IT controls[146]. - The board expects to review the risk management and internal control systems annually[149]. Employee and Management Information - As of December 31, 2022, the group had a total of 35 employees, down from 44 employees as of December 31, 2021, with employee costs amounting to approximately HKD 12.1 million in 2022, compared to HKD 13.5 million in 2021[47]. - The Chief Financial Officer has been with the group since 2013 and was appointed CFO in April 2018[69]. - The independent non-executive director has over 21 years of experience in accounting, auditing, and corporate advisory[70]. - The financial director has 20 years of experience in accounting and financial management[74]. - The sales director for Macau and Southeast Asia has over 35 years of work experience, with significant expertise in public relations and event management[75]. Financial Position - The company has no debt as of December 31, 2022, and its capital structure has not changed since its listing[41]. - The net loss after tax for the fiscal year 2022 was approximately HKD 14.7 million, an improvement from a net loss of about HKD 23.1 million in 2021[40]. - The group had no significant investments or acquisitions related to subsidiaries, associates, or joint ventures during the fiscal year 2022[44]. - The group reported a net foreign exchange loss of HKD 44,459 for the fiscal year 2022, a decrease from HKD 96,103 in the previous fiscal year, attributed to fluctuations in the USD/HKD exchange rate[55]. - The group had no significant contingent liabilities as of December 31, 2021, and December 31, 2022[46]. - The company has a dividend policy allowing shareholders to share in distributable profits while reserving sufficient reserves for future development[102]. - No dividends were declared or paid for the fiscal year 2022, consistent with the previous fiscal year[179]. - The board has resolved not to recommend any final dividend for the fiscal year 2022[180]. - As of December 31, 2022, the company had no distributable reserves available for shareholders according to the Cayman Islands Companies Law[190].
亚洲先锋娱乐(08400) - 2022 - 年度财报