Financial Performance - The total comprehensive loss for the year ended December 31, 2022, was HKD 94,228,000, compared to a loss of HKD 156,300,000 in 2021, representing a 39.7% improvement[18]. - Revenue from continuing operations for the year was HKD 3,879,000, an increase of 4.4% from HKD 3,717,000 in 2021[17]. - The group reported a gross profit of HKD 3,413,000 for the year, down from HKD 3,588,000 in 2021, reflecting a decrease of 4.9%[17]. - Administrative expenses increased to HKD 88,174,000 from HKD 75,063,000, representing a rise of 17.4%[17]. - The company reported a loss attributable to owners of HKD 94,101,000 for the year 2022, compared to a loss of HKD 156,496,000 in 2021, indicating a reduction in losses[67]. - The loss for the year was HKD 94,120,000, a decrease of 40% from HKD 156,515,000 in the previous year, primarily due to a significant reduction in losses from fair value changes of financial assets[103]. - The company reported a loss from discontinued operations of HKD 7,866,000 for the year ended December 31, 2021[87]. - The company recorded a loss attributable to shareholders of HKD 94,101,000 in 2022, an improvement from a loss of HKD 148,630,000 in 2021[99]. Assets and Liabilities - The group's total assets as of December 31, 2022, amounted to HKD 5,247,857,000, a slight decrease from HKD 5,285,909,000 in 2021[20]. - Non-current assets increased to HKD 694,674,000 in 2022 from HKD 214,382,000 in 2021, indicating a significant growth in long-term investments[7]. - The group's total liabilities increased to HKD 2,298,105,000 in 2022 from HKD 2,221,933,000 in 2021, indicating a rise of 3.4%[20]. - The group's total equity decreased to HKD 803,752 million in 2022 from HKD 834,441 million in 2021, reflecting a decline in shareholder value[40]. - The total borrowings amounted to HKD 1,694,397,000, up from HKD 1,576,191,000 in 2021, including secured bank loans of HKD 1,600,000,000 and notes payable of HKD 86,898,000[129]. - The capital debt ratio was 57% as of December 31, 2022, compared to 51% in 2021, with total debt of HKD 1,694,397,000 and equity attributable to owners of HKD 2,950,433,000[144]. Revenue Streams - The group's revenue from film-related operations for 2022 was HKD 3,879 million, an increase from HKD 3,717 million in 2021, while the property development and investment segment reported a loss of HKD 34,066 million in 2022 compared to a loss of HKD 38,441 million in 2021[28]. - Total revenue for the year was entirely derived from film-related business, amounting to HKD 3,879,000, with no revenue from property development and investment[89]. - Revenue from artist management services increased to HKD 888,000 in 2022 from HKD 449,000 in 2021[58]. - The total interest income from loans decreased to HKD 46,079,000 in 2022 from HKD 86,102,000 in 2021[60]. Cash Flow and Expenses - The group's cash and bank balances decreased to HKD 75,484,000 from HKD 102,021,000, reflecting a decline of 26.0%[7]. - The company incurred a loss of HKD 13,046,000 due to the termination of a loan provided to a director, which was not present in the previous year[62]. - The depreciation expense for property, plant, and equipment was HKD 6,810,000 in 2022, down from HKD 9,503,000 in 2021[62]. - Marketing and issuance expenses rose significantly to HKD 11,111,000 from HKD 158,000 in the previous year, driven by promotional activities for the "Daphne's House" project[127]. Impairments and Provisions - The company recognized an impairment loss of HKD 256,000 related to film copyrights in 2022, significantly lower than the HKD 2,862,000 recorded in 2021[62]. - The expected credit loss provision for trade receivables was HKD 4,000 in 2022, compared to HKD 46,000 in 2021[62]. - The expected credit loss provision for film-related business was HKD 6,887,000 in 2022, up from HKD 3,339,000 in 2021[92]. Strategic Focus and Future Outlook - The company aims to achieve healthy and stable growth while seeking appropriate business opportunities for maximum investment returns[153]. - The company plans to gradually expand film production when suitable storylines are available, indicating a strategic focus on content creation[153]. - The Macau property market is expected to rebound in Q2 2023 due to the gradual relaxation of pandemic policies and a recovery in tourism and gaming industries[153]. - The company anticipates improved cash flow and revenue in 2023, driven by the commencement of earnings from the new project, Diphany House[153]. Corporate Governance - The company’s audit committee consists of independent non-executive directors, ensuring oversight of financial reporting and risk management[156]. - The group has applied new Hong Kong Financial Reporting Standards, which are expected to have no significant impact on the financial statements in the foreseeable future[15]. - The group has not adopted new Hong Kong Financial Reporting Standards that have been issued but are not yet effective, indicating a cautious approach to regulatory changes[24].
中国星集团(00326) - 2022 - 年度业绩