SINO-ENTERTAIN(HK:06933)2023-04-26 22:31Financial Performance - The total revenue for the year was approximately RMB 12,302,000, a decrease of about 88.2% compared to approximately RMB 104,267,000 for the year ended December 31, 2021[14]. - The company recorded a loss attributable to owners of approximately RMB 97,525,000 for the year, compared to a loss of approximately RMB 2,950,000 for the year ended December 31, 2021[12]. - The gross loss for the year was approximately RMB 3,714,000, a significant decline from a gross profit of approximately RMB 28,806,000 in the previous year, primarily due to a substantial decrease in revenue[20]. - Other income decreased by approximately 91.4% to RMB 583,000 from RMB 6,817,000 in the previous year, mainly due to one-time government incentives received in prior years[21]. - The company reported a net loss attributable to owners of approximately RMB 97,525,000 for the year, compared to a loss of RMB 2,950,000 in the previous year, largely due to a reduction in game publishing service revenue[29]. Revenue Sources - The company did not generate any revenue from self-developed games during the year, while it had revenue of approximately RMB 3,209,000 from one internally developed mobile game in the previous year[16]. - As a co-publisher, the company provided publishing services for 11 third-party games during the year, contributing approximately RMB 10,750,000 in revenue, down from approximately RMB 92,567,000 from 65 third-party games in the previous year[17]. - No revenue was recorded from self-developed and sold games this year, while two custom software and games sold to third parties contributed approximately RMB 8,491,000 in the previous year[19]. - The company generated approximately RMB 1,552,000 in revenue from blockchain technology services outside mainland China, compared to zero in the previous year[18]. Impairment and Losses - The company recognized impairment losses of approximately RMB 39,884,000 under the expected credit loss model and approximately RMB 24,657,000 for intangible assets during the year[12]. - The company recognized impairment losses of approximately RMB 22,845,000 on trade receivables under the expected credit loss model, compared to RMB 2,163,000 in the previous year[25]. Assets and Liabilities - As of December 31, 2022, the company's current assets net value was approximately RMB 183,768,000, down from RMB 254,943,000 in the previous year[30]. - The company had bank borrowings of approximately RMB 47,748,000 as of December 31, 2022, compared to zero in the previous year, resulting in a debt-to-equity ratio of approximately 73.1%[31]. - As of December 31, 2022, the company's distributable reserves amounted to approximately RMB 639 million, a decrease from RMB 688 million in 2021[50]. Governance and Compliance - The board of directors did not recommend any final dividend for the year, consistent with 2021[49]. - The board consists of seven members, including two executive directors and three independent non-executive directors, complying with listing rules[115]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to enhance governance and oversight[129]. - The company has complied with all provisions of the Corporate Governance Code as per the listing rules[104]. - The company has confirmed that all independent non-executive directors are independent and comply with the independence guidelines set out in the listing rules[122]. Strategic Focus - The company anticipates that the current downturn in the Chinese gaming industry is temporary, with the potential to obtain new game licenses in the future, including two game titles currently under application[13]. - The company is focusing on developing high-growth potential businesses, including the possibility of creating new games with innovative elements such as blockchain technology[7]. - The company will regularly review its business strategies to capture opportunities in both the Chinese and overseas markets[13]. Shareholder Engagement - The company is committed to engaging with shareholders during the annual general meeting to address their concerns and questions[155]. - The company has established procedures for convening special general meetings upon request from shareholders holding at least 10% of the paid-up capital[156]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report highlights the company's commitment to sustainable development and stakeholder engagement[177]. - The company is committed to environmental management and has established a system for environmental protection and resource conservation[189]. - The company has implemented measures to reduce paper usage, including double-sided printing and promoting paperless communication[199]. - The company emphasizes the importance of employee health and safety, product responsibility, and employee development in its sustainability strategy[188]. Risk Management - The company has a structured approach to risk management and internal controls, which is overseen by the Audit Committee[131]. - The board of directors is responsible for establishing and maintaining an effective risk management and internal control system, which is reviewed at least annually[165]. - The company has engaged an independent consultant, GRC Chamber Limited, to review its internal control systems and risk management processes[166].