Financial Performance - The group's revenue for the year ended March 31, 2023, was approximately HKD 15,105,000, a decrease of about 17.5% compared to HKD 18,320,000 for the previous year[8]. - Gross profit decreased by approximately 15.4% to about HKD 5,983,000 from HKD 7,072,000 in the previous year[8]. - The group recorded a loss of approximately HKD 16,349,000 for the year, an increase of about HKD 3,221,000 from a loss of HKD 13,128,000 in the previous year[8]. - Total revenue for the group decreased by about 17.5% to approximately HKD 15,105,000 compared to the previous year[22]. - Operating loss increased to HKD 15,981,000 from HKD 13,055,000, reflecting a deterioration in operational performance[197]. - Net loss for the year was HKD 16,349,000, compared to a net loss of HKD 13,128,000 in the prior year, indicating a 24.5% increase in losses[197]. - Total assets decreased to HKD 25,484,000 from HKD 39,188,000, representing a decline of 34.9%[199]. - Net assets fell to HKD 17,694,000 from HKD 33,501,000, a significant drop of 47.2%[199]. - Basic and diluted loss per share for the year was HKD 0.08, compared to HKD 0.07 in the previous year[197]. Revenue Breakdown - Approximately 73.0% of the group's revenue came from Hong Kong clients, while about 20.6% came from Taiwan clients, and Southeast Asia contributed approximately 6.4%[14]. - Revenue from Hong Kong decreased by approximately 12.9% to about HKD 11,034,000 compared to the previous year[15]. - Revenue from Taiwan fell to approximately HKD 3,114,000, a decrease from HKD 3,920,000 in the previous year, reflecting a decline of about 20.5%[16]. - Revenue from Southeast Asia dropped from approximately HKD 1,726,000 to about HKD 957,000, a decrease of approximately 44.4%[17]. Strategic Focus and Plans - The company plans to enhance its talent pool and team to seize opportunities in the large online advertising market in Southeast Asia[10]. - New strategies will focus on increasing face-to-face meetings with peers and clients, and enhancing online advertising solutions[9]. - The group plans to focus on enhancing its service offerings and strengthening relationships with key partners to capture future opportunities[19]. - The company aims to identify growth-driving partnerships and acquisition opportunities[10]. - The management anticipates growth in marketing agency services from Asia Interactive, which is expected to enhance social media coverage and business introduction opportunities, particularly in the Chinese market[43]. Challenges and Risks - The recovery of the advertising market is slower than expected, posing challenges for the company[9]. - Key risks include reliance on advertising agency relationships for revenue, with measures to diversify the client base and engage directly with medium brands[45]. - The group faces challenges in retaining employees, with strategies including semi-annual evaluations and maintaining good relationships with staff[47]. - Currency fluctuations pose a risk, with plans to monitor and convert foreign currency cash to HKD as needed[47]. - The group is developing business contingency plans to address adverse external conditions, including social unrest and pandemics[47]. - The management emphasizes the importance of risk management measures to mitigate operational and financial risks[45]. Corporate Governance - The company has established a robust governance structure with various committees, including a nomination committee and an audit committee, to ensure effective oversight[59]. - The board consists of seven members, including four executive directors and three independent non-executive directors, maintaining the required independence[130]. - The independent non-executive directors provide practical independent opinions and judgments, enhancing the board's decision-making process[133]. - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance throughout the relevant year[125]. - The board is responsible for major policy decisions, overall strategy, business plans, and risk management systems[127]. Employee and Director Information - The employee costs for the group, including director remuneration, employee salaries, wages, other benefits, and fixed contributions to retirement plans, were approximately HKD 12,737,000 for the year, down from HKD 14,083,000 in the previous year[104]. - The group employed a total of 33 employees as of March 31, 2023, unchanged from the previous year[104]. - The management team has over 10 years of experience in marketing and advertising, with key personnel responsible for overall management and operations including sales, marketing, customer service, human resources, and finance[55]. - The company has established a competitive salary policy for employees, which includes salary and bonuses, as well as benefits such as retirement and medical insurance[104]. Audit and Financial Reporting - The financial statements for the year ending March 31, 2023, were audited by KPMG, which is eligible for reappointment at the annual general meeting[122]. - The audit committee assists the board in overseeing the financial reporting process of the group[191]. - The independent auditor's goal is to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error[192]. - The company is assessing its internal controls and accounting policies to address the identified risks and improve financial reporting[194]. Shareholder Communication - The company maintains communication with shareholders through various channels, including annual general meetings and its website[171]. - The company confirms it has maintained sufficient public float as required by GEM listing rules as of March 31, 2023[116].
源想集团(08401) - 2023 - 年度财报