Business Expansion and Market Position - The company has entered the digital market in China through its online mall, Michong Mall, marking a new milestone in its business expansion[13]. - The company changed its name to Michong Metaverse (China) Holdings Group Limited, which is expected to enhance its corporate image and facilitate business development[13]. - The company aims to strengthen its position as a major player in the information and communication technology industry in Malaysia[12]. - The company is actively exploring various opportunities to drive business growth in response to market changes[12]. - The company plans to enhance its e-commerce business and invest in internet retail technology development to improve online consumer shopping experiences[21]. - The company aims to expand its partner network to strengthen competitive advantages and improve operational efficiency as e-commerce business grows[21]. - The company has expanded its market beyond Malaysia, generating approximately RM 1.4 million in revenue from new market connections in China as of June 30, 2022[33]. - The group primarily engages in providing network support services, network connectivity services, and e-commerce, with a focus on developing new e-commerce businesses in China as of June 30, 2022[133]. Financial Performance - In the fiscal year 2021/2022, the e-commerce business contributed approximately 9.8 million MYR, accounting for 16.1% of the total revenue[17]. - The company's revenue increased from approximately 39.8 million MYR for the year ended June 30, 2021, to approximately 61.0 million MYR for the year ended June 30, 2022, representing a growth of 53.3%[58]. - Revenue from network support services rose by approximately 42.0%, while revenue from network connection services increased by approximately 20.0%[58]. - The cost of sales and services increased from approximately 27.5 million MYR to approximately 39.1 million MYR, a rise of 42.2%[59]. - Gross profit margin improved from approximately 30.9% to approximately 35.9% due to the introduction of e-commerce, which contributed a relatively high gross profit margin of about 99.0%[60]. - Selling expenses surged from approximately 1.0 million MYR to approximately 23.9 million MYR, an increase of 2290%, primarily due to marketing expenses related to the new e-commerce initiative[65]. - Loss for the year increased by approximately RM 18.4 million or 800.0% to RM 20.7 million for the year ended June 30, 2022, attributed to increased selling and administrative expenses[70]. Operational Challenges and Market Conditions - The COVID-19 pandemic has significantly impacted global economies, leading to a shift in consumer behavior from offline to online[12]. - Malaysia's reopening on May 1, 2022, is seen as a key factor for resuming economic activities, prompting the company to adjust its market entry strategies[21]. - The company will continue to monitor the situation in Malaysia to ensure sustainable operations and business performance amid ongoing challenges from the COVID-19 pandemic[28]. - The company is closely monitoring the situation and will adjust its management and sales strategies as necessary following the reopening of Malaysia's borders[32]. Investments and Future Plans - The company plans to continue investing more resources in developing its e-commerce business despite challenges from the pandemic and weak consumer environment in China[37]. - The group plans to utilize the remaining HKD 2.8 million of net proceeds in the fiscal year ending June 30, 2023[105]. - The group aims to expand its workforce to support anticipated growth, with HKD 2.7 million or 9.6% allocated for this purpose[98]. - The company plans to promote its business to gain more market share, with HKD 2.0 million or 7.2% allocated for marketing efforts[99]. Risk Management and Compliance - The board regularly reviews major risk areas and appropriate risk mitigation strategies, considering the overall risk management and internal control systems effective and adequate[55]. - The board report includes a discussion on the major risks and uncertainties faced by the group, as well as potential future developments in its business[134]. - The group is focused on maintaining compliance with all relevant laws and regulations, ensuring that its operations adhere to environmental policies[136]. Shareholder and Governance Information - The company has arranged suitable liability insurance for its directors and executives against potential legal actions as of June 30, 2022[166]. - The company has not entered into any management or administrative contracts for its overall business or any significant operations as of June 30, 2022[168]. - The company has not disclosed any significant interests held by directors or executives in any transactions or arrangements that could materially affect the group's business[167]. - The company has authorized a total of 60,000,000 shares for the share option plan, representing 10% of the expanded issued share capital[185]. Employee and Community Engagement - The group made charitable donations of approximately MYR 86,000 during the year ended June 30, 2022, compared to none in 2021[200]. - The company has established a favorable working environment and offers various benefits and career development opportunities to its employees[140].
比特元宇宙(08645) - 2022 - 年度财报