FIRE ROCK(HK:01909)2024-03-28 11:43Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was approximately HKD 134.9 million, representing an increase of about 17.2% compared to HKD 115.1 million in 2022[4] - The gross profit for the same period was approximately HKD 107.5 million, reflecting a growth of about 40.3% from HKD 76.6 million in the previous year[4] - The net profit for the year was approximately HKD 572.5 million, a significant increase from HKD 35.5 million in 2022[4] - The company reported a basic and diluted earnings per share of HKD 14.58, compared to HKD 0.79 in the previous year[1] - Total comprehensive income for the year amounted to approximately HKD 573.8 million, up from HKD 36.4 million in 2022[1] - The group reported external customer revenue of HKD 134,927,000 for the year ended December 31, 2023, compared to HKD 115,063,000 for the previous year, representing an increase of approximately 17.3%[30] - The group recorded a profit of HKD 4,251,000 for the reporting segments, a significant recovery from a loss of HKD 40,501,000 in the previous year[30] - The group’s net profit attributable to shareholders for the year was approximately HKD 559,911,000, a substantial increase from HKD 30,201,000 in the previous year, indicating a growth of over 1,700%[37] - The company reported a revenue of approximately HKD 134.9 million for the year ended December 31, 2023, an increase of about HKD 19.8 million from HKD 115.1 million for the year ended December 31, 2022[75] - The gross profit for the year ended December 31, 2023, was approximately HKD 107.5 million, up about HKD 30.9 million from HKD 76.6 million in the previous year, resulting in a gross margin of approximately 79.7% compared to 66.6% in the prior year[78] - Other income for the year ended December 31, 2023, was approximately HKD 594.4 million, significantly higher than approximately HKD 50.9 million in the previous year, primarily due to the issuance of promissory notes[79] - The company recorded a profit attributable to equity holders of approximately HKD 559.9 million for the year ended December 31, 2023, compared to HKD 30.2 million for the year ended December 31, 2022, largely due to one-time non-recurring other income[90] Dividends - The company did not recommend the payment of a final dividend for the fiscal year ending December 31, 2023[4] - The group did not recommend any final dividend for the year ended December 31, 2023[36] - No final dividends are recommended for the years ending December 31, 2023, and December 31, 2022[163] Assets and Liabilities - Non-current assets increased, with property, plant, and equipment at HKD 5.1 million and intangible assets at HKD 15.4 million[2] - Current assets decreased to HKD 109.5 million from HKD 131.8 million in the previous year, primarily due to a reduction in cash and cash equivalents[2] - The company's total liabilities decreased significantly, resulting in a net asset position of HKD 140.3 million compared to a net loss position of HKD 421.3 million in 2022[2] - The group’s total assets for the reporting segments amounted to HKD 145,967,000, with liabilities totaling HKD 18,869,000 as of December 31, 2023[30] - Total assets as of December 31, 2023, amounted to HKD 160,873 million, a decrease from HKD 189,712 million in 2022, reflecting a reduction of approximately 15.3%[44] - Total liabilities decreased significantly to HKD 20,552 million in 2023 from HKD 610,966 million in 2022, a decline of about 96.6%[44] - The company’s total unallocated assets decreased to HKD 14,906 million in 2023 from HKD 43,596 million in 2022, a decline of approximately 65.8%[44] Employee and Operational Metrics - As of December 31, 2023, the company had 108 employees, an increase from 71 employees as of December 31, 2022[119] - The employee distribution by function shows that project development accounted for 39.8% of total employees in 2023, compared to 23.9% in 2022[119] - Employee costs and benefits for the year ended December 31, 2023, amounted to HKD 1.37 million, representing 5.0% of total costs, compared to HKD 654,000 or 1.7% in the previous year[77] Research and Development - Research costs for the year ended December 31, 2023, amounted to HKD 19.8 million, as several projects were in the research stage, while there were no research costs recognized for the year ended December 31, 2022[109] - The company aims to enhance its game development capabilities and diversify its offerings, with a planned allocation of HKD 2.9 million for this purpose[125] Strategic Initiatives - The company continues to focus on the development of web and mobile games, expanding its market presence globally[5] - The company plans to strengthen its business related to third-party licensed game publishing and expand its online marketing and digital support activities in overseas markets[74] - The company has strategically expanded its main business to include a more diverse range of services, including internet application technology and investment businesses[90] Risk Management - The company faces various risks, including credit risk, interest rate risk, liquidity risk, currency risk, and business risk[126] - The audit committee regularly reviews the company's risk management and internal control systems to ensure their effectiveness[152] - The company has no significant foreign exchange risk hedging policies but closely monitors foreign exchange risks[123] Compliance and Governance - The company has adopted corporate governance codes and confirms compliance with the standards for securities trading during the fiscal year ending December 31, 2023[165] - The audit committee has reviewed the audited financial statements for the fiscal year ending December 31, 2023, ensuring compliance with applicable accounting standards[168] Other Financial Metrics - The company incurred a loss of HKD 2.771 million from the sale of Lord Metaverse Co. Ltd., with a total cash consideration of HKD 185,000 received[60] - The company reported a loss of HKD 109,000 from the sale of 德成國際控股有限公司, with a total cash consideration of HKD 10,000 received[63] - The company reported a tax expense of HKD 8,271 million for 2023, slightly down from HKD 8,699 million in 2022, a decrease of about 4.9%[48] - The company’s trade receivables increased to HKD 20,645 million in 2023 from HKD 9,832 million in 2022, representing a growth of approximately 109.2%[57] - The company has no short-term or long-term borrowings as of December 31, 2023[117] - The company has not pledged any assets as collateral for bank loans or other financing arrangements as of December 31, 2023[118] - The company plans to use internal resources and continuous internal growth to fund its expansion and business operations[112]