Financial Performance - The Group recorded revenue of approximately HK$209,261,000 for FY2021, representing a year-on-year decrease of approximately 51.8%[16] - The loss after tax for the Group was approximately HK$44,130,000 during the same period[16] - The decline in revenue was mainly due to the shrinking sales volume of internet advertising agency services offered by its wholly-owned subsidiary[16] - The Group recorded an operating income of approximately HK$209.3 million for the year ended June 30, 2021, representing a decrease of about 51.8% compared to HK$434.3 million for the year ended June 30, 2020[37] - The Group recorded a loss for the year of approximately HK$44.1 million for the year ended June 30, 2021, compared to a loss of HK$44.0 million for the previous year[50] Cost Management - The cost of sales for the year ended June 30, 2021, amounted to approximately HK$193.5 million, a decrease of about 54.6% compared to the previous year[38] - Selling and distribution expenses decreased from approximately HK$2.2 million in FY 2020 to HK$0.6 million in FY 2021, reflecting tight cost control measures[45] - Administrative expenses decreased from approximately HK$33.9 million for the year ended June 30, 2020, to approximately HK$27.1 million for the year ended June 30, 2021, representing a decrease of about 20%[46] - Finance costs decreased from HK$4.4 million in FY 2020 to HK$1.1 million in FY 2021, primarily due to the termination of lease contracts and full repayment of bank loans[48] Future Plans - The Group plans to adjust investments in the internet advertising business and seek new customers, businesses, and revenue streams[17] - Future plans include the development of an overseas cryptocurrency business to enhance returns for shareholders[17] - The Group plans to develop overseas cryptocurrency business to deliver better returns to shareholders in the future[28] - The Group aims to adjust investments in the internet advertising business to tap into new customers, businesses, and revenue streams[28] Financial Position - As of June 30, 2021, the Group's cash and bank balances totaled approximately HK$1.4 million, a decrease from HK$49.9 million as of June 30, 2020, primarily due to repayment of borrowings and purchases of property, plant, and equipment[59] - The Group's outstanding borrowings as of June 30, 2021, amounted to HK$10.2 million, down from HK$30.8 million as of June 30, 2020, with borrowings primarily denominated in HKD at fixed interest rates[60] - The total debt to equity ratio was approximately 7.7% as of June 30, 2021, a decrease from 18.7% as of June 30, 2020, indicating improved financial stability[61] - The Group has a capital commitment of HK$13.9 million as of June 30, 2021, related to the acquisition of property, plant, and equipment, compared to nil in the previous year[70] Risk Management - The Group's risk management policy aims to minimize adverse effects from market risks such as currency and interest rate risks[62] - The Group has not entered into any interest rate hedging contracts due to current low interest rates but continues to monitor its interest rate exposure closely[68] - The Group's foreign exchange exposure was minimal, with no significant adverse effects from changes in foreign exchange rates during the reporting periods[67] Auditor's Opinion - The independent auditor expressed a disclaimer of opinion on the Group's consolidated financial statements as of June 30, 2021, due to issues related to prior year transactions and intangible assets[81] - The disclaimer of opinion from the auditor relates solely to the items and disclosures in the Group's consolidated financial statements as of 30 June 2020[102] Intangible Assets - The Group entered into supplementary agreements for the termination and revision of prior year's acquisition of certain intangible assets for a total price of HK$7,151,000[87] - The Group completed disposals of remaining intangible assets for a total consideration of HK$31,554,000, recognizing a gain on disposal of HK$2,444,000 in profit and loss[87] - The carrying amount of the intangible assets at the date of sale agreements was HK$20,501,000, which was reclassified to "Assets classified as held-for-sale"[87] - The opening balance of intangible assets at 1 July 2020 was approximately HK$32,993,000, which may significantly impact the retained profits of the Group[88] - The Group disposed of its entire interest in Yidao Network for a total consideration of HK$32,962,000, with a carrying amount of HK$32,360,000 at the date of the sale agreement[98] - The exchange surplus relating to the Group's interest in Yidao Network amounted to approximately HK$3,074,000 recognized in profit or loss for the current year[101] - The Group's interest in intangible assets was fully disposed of and collected as of 30 September 2021[95] - Any necessary adjustments to the interest in Yidao Network may significantly affect the consolidated financial position and performance of the Group as at 30 June 2020[97] - The completion of industrial and commercial procedures for Yidao Network occurred on 16 September 2021, and it is no longer an associate of the Group[103] Employee Costs and Policies - The Group's total staff costs for FY 2021 were approximately HK$7.3 million, a decrease from HK$13.6 million in FY 2020, with a workforce of 48 employees as of June 30, 2021[121] - The Group's total employee cost for the fiscal year 2021 was approximately HK$7.3 million, a decrease from HK$13.6 million in the fiscal year 2020[126] - The Group's emolument policy for employees and directors is reviewed annually, considering individual responsibilities and performance[122] - The Group's employee compensation policy is reviewed annually by the remuneration committee, considering responsibilities, experience, and performance[126] - The Group's contributions to the Mandatory Provident Fund for employees in Hong Kong are 5% of their monthly income, with a maximum contribution of HK$1,500 monthly[125] - The Group is required to contribute to government retirement benefit schemes for employees in the PRC, calculated based on certain percentages of applicable payroll costs[127] - The Group has maintained a good working relationship with its employees, experiencing no significant labor disputes or difficulties in recruitment[128] - The Group's employee training programs focus on enhancing technical skills and safety awareness[126] Board and Management - Ms. Tian has extensive experience in foreign exchange trading, derivatives development, and investment fund management[147] - Ms. Tian is currently the general manager of Shanghai Angell Asset Management Company Limited and deputy general manager of Jilin Province Investment Group Company Limited[145] - Mr. Chen has been a senior investment manager at Haitong Capital Investment Co., Ltd. since August 2011, focusing on pre-investment research and post-investment management[151] - Ms. Zhu serves as the chairlady of the remuneration committee and nomination committee, with a background in risk management and financial auditing[155] - Ms. Jiang has extensive experience in corporate governance and compliance, previously working at Long Well International Holdings Limited[163] - Mr. Ren, appointed as vice president on July 28, 2021, has over 10 years of experience in senior corporate management and capital investment[165] - The company has a strong focus on investment management and risk control, as demonstrated by the roles of its independent directors[157] - The board includes members with qualifications such as certified public accountants and chartered governance professionals, enhancing its governance capabilities[162] - The management team has a diverse educational background, with degrees from prestigious universities such as UCLA and Fudan University[147] Customer and Supplier Concentration - The Group's total sales for FY2021 were entirely accounted for by its five largest customers, with the largest customer contributing 98.3%[186] - The Group's total purchases for FY2021 were also entirely from its five largest suppliers, with the largest supplier accounting for 95.4%[186] Dividends and Financial Health - The Board does not recommend any dividend payment for FY2021, consistent with FY2020 where no dividend was paid[171][179] - The movements in the Group's reserves during FY2021 are detailed in the consolidated financial statements, reflecting the financial health of the Company[181][190] - The Group's financial risk management objectives and policies are outlined in the consolidated financial statements, indicating a structured approach to managing financial risks[173][180] Governance and Compliance - The Group's environmental, social, and governance performance is discussed in a report published on December 30, 2021, highlighting compliance with relevant laws and regulations[174][180] - Significant related party transactions during the year are disclosed, ensuring transparency in the Group's financial dealings[188][193] Changes in Board Composition - The company has appointed new directors, including Mr. Gan Xiaohua on July 25, 2022, and has seen changes in the board with resignations and appointments[199] - Five directors, including Mr. Zhu Yongjun and Ms. Tian Yuan, will retire at the upcoming annual general meeting and are eligible for re-election[199]
瓦普思瑞元宇宙(08093) - 2022 - 年度财报