Impact of COVID-19 - The ongoing COVID-19 pandemic has severely impacted the sales performance of the gaming machine and equipment industry, leading to significant adverse effects on the cash-generating units of the group [3]. - The demand for the group's gaming machines decreased due to the prolonged pandemic and travel restrictions, impacting order volumes significantly [6]. - The group’s reliance on the social conditions globally, particularly the public entertainment accessibility of amusement parks, has been a critical factor affecting its operations [5]. - The board acknowledges that the group's operations faced significant adverse impacts on sales performance due to the inability to achieve expected results compared to the previous year [6]. Financial Performance - The group experienced a decline of over 90% in standardized net profit for the year ended December 31, 2021, compared to the previous year, leading to a substantial decrease in fair value [8]. - The valuation method used for the group as of December 31, 2021, was adjusted due to the ongoing pandemic and its financial impacts, resulting in a more accurate reflection of the group's value [9]. Valuation Methods - The discount rate used for the value-in-use calculation was set at 22%, reflecting specific risks associated with the cash-generating units [3]. - The growth rate for cash flows beyond the five-year budget plan is projected at 2%, which does not exceed the management's forecasted long-term industry growth rate [4]. - The independent professional valuers have indicated that the existing market approach may only serve as one of the methods for estimating the fair value of the group [9]. - The board believes that the changes in valuation methods are necessary to ensure a fair and reasonable valuation for the group and its shareholders [9].
官酝控股(08513) - 2022 Q2 - 季度财报