Financial Performance - For the year ended May 31, 2022, the Group recognized revenue of approximately HK$20.3 million, representing an increase of HK$8.0 million or 65% compared to the previous year[15]. - The Group's gross loss for the year was approximately HK$11.5 million, a significant improvement from a gross loss of approximately HK$22.5 million for the year ended May 31, 2021[15]. - The net loss of the Group was approximately HK$24.4 million, which is a decrease of approximately HK$11.3 million or 32% compared to the previous year[15]. - For the year ended May 31, 2022, the company reported revenue of approximately HKD 20.3 million, an increase of HKD 8.0 million or 65% compared to the previous year[19]. - The gross loss for the same period was approximately HKD 11.5 million, down from HKD 22.5 million in the previous year[19]. - The net loss for the year was approximately HKD 24.4 million, a reduction of HKD 11.3 million or 32% compared to the previous year[19]. - The Group's loss for the year was approximately HK$24.4 million, a decrease of approximately HK$10.7 million compared to a loss of HK$35.1 million in 2021, attributed to an increase in shows and events, higher equipment rental charges, and successful cost-saving measures[84]. - The effective income tax rate of the Group was 2.3% for the year ended 31 May 2022, down from 12.3% in 2021[83]. - The actual income tax rate for the Group for the year ended May 31, 2022, was 2.3%, down from 12.3% in the previous year[86]. Business Operations and Strategy - The Group has entered into cooperation with Shenzhen Xinhang Information Technology Company Limited to explore new business opportunities in metaverse technology[16]. - The Group aims to leverage existing video display equipment to expand into the field of metaverse technology and enhance its visual display business[16]. - The Group plans to strengthen management governance and explore more business opportunities to diversify its operations for shareholder benefit[17]. - The Group aims to mitigate the adverse impact of relying on a single source of revenue by introducing existing video display equipment to the television and film industry[90]. - The management believes that the business will return to the right track as COVID-19 subsides and may experience explosive growth in the near future[91]. - The Group has actively sought new business opportunities to apply its video display solutions beyond the live event industry, including a partnership with Shenzhen Xinhang Information Technology Company Limited to explore metaverse technology[90]. Event Participation and Revenue Sources - The company engaged in 107 pop concert shows during the year, up from 65 shows in 2021, indicating a recovery in business activities[25]. - Approximately 33.7% of total revenue for the year came from pop concerts, compared to 20.9% in the previous year[25]. - Revenue from visual display solutions accounted for approximately 95.5% of the Group's total revenue in the year ended 31 May 2022, down from 97.4% in 2021[32]. - The average revenue per pop concert performance increased from approximately HK$39,000 in 2021 to approximately HK$64,000 in 2022[40]. - Revenue from other live events increased, with average revenue per performance rising from HK$7,000 in 2021 to approximately HK$10,000 in 2022[39]. - For the year ended 31 May 2022, total revenue from pop concerts was HK$6,857,000, representing a 100% increase from HK$2,510,000 in the previous year[58]. - Revenue from other live events totaled HK$12,567,000, with an average revenue per show of HK$10,000, compared to HK$9,512,000 and HK$8,000 in the previous year, respectively[63]. Financial Risks and Management - The group faces various financial risks, including cash flow and foreign exchange risks, which are detailed in the annual report[25]. - The Group's business performance may be affected by the economic conditions in Hong Kong, which are susceptible to fluctuations in the global economic environment[30]. - The Group maintained a healthy liquidity position throughout the year ended May 31, 2022, by adopting prudent financial management approaches[103]. - As of May 31, 2022, the Group recorded net current liabilities of approximately HK$26.4 million, compared to net current assets of approximately HK$12.1 million in 2021[92]. - The Group's current ratio as of May 31, 2022, was approximately 0.32, down from approximately 0.55 in 2021[93]. - The gearing ratio as of May 31, 2022, was approximately 47.1%, compared to approximately 21.2% in 2021[93]. Corporate Governance - The Board comprises seven Directors, including three executive Directors and four independent non-executive Directors, ensuring a balance of skills and experience[126]. - The Board has achieved compliance with the GEM Listing Rules, with more than one-third of its members being independent non-executive Directors[126]. - The Company has complied with all applicable code provisions of the Corporate Governance Code, except for a deviation regarding the roles of chairman and chief executive[117]. - The Board is committed to high standards of corporate governance to safeguard and enhance shareholders' interests[115]. - Monthly financial and operational information is provided to the Board to assess the performance of the Company and its subsidiaries[122]. - The Board held a total of ten Board meetings, five Audit Committee meetings, two Remuneration Committee meetings, and one Nomination Committee meeting during the year ended May 31, 2022[136]. Audit and Remuneration - PricewaterhouseCoopers resigned as the auditor effective June 17, 2022, due to a disagreement on audit fees, and Zhonghui Anda CPA Limited was appointed as the new auditor[157]. - The Remuneration Committee, comprising four independent non-executive Directors, is responsible for recommending remuneration policies and packages for Directors and senior management[160]. - The remuneration policy for Directors and senior management is based on experience, responsibility level, and market conditions, with bonuses linked to Group and individual performance[164]. - The Group's senior management remuneration is linked to both Group performance and individual performance metrics[164]. Shareholder Engagement - The Company aims to maintain ongoing dialogue with shareholders through annual general meetings and other communications[196]. - The forthcoming annual general meeting is scheduled for 8 November 2022[199].
耀星科技集团(08446) - 2022 - 年度财报