Financial Performance - The Group reported a revenue of approximately HK$199.4 million for the year 2021, a significant increase from approximately HK$47.8 million in 2020[17]. - The net loss attributable to owners of the Company for 2021 was approximately HK$401.1 million, compared to a net loss of approximately HK$162.3 million in 2020[17]. - The recorded gross loss for 2021 was approximately HK$95.4 million, up from a gross loss of approximately HK$28.2 million in 2020[16]. - Basic loss per share for the year amounted to approximately 48.70 HK cents, compared to a loss per share of 19.70 HK cents in 2020[18]. - Net liabilities of the Group were approximately HK$190.87 million in 2021, compared to net assets of approximately HK$176.58 million in 2020[18]. - The Group recorded a gross loss of approximately HK$95.4 million for the year 2021, compared to a gross loss of approximately HK$28.2 million in 2020[21]. - The loss attributable to owners of the Company for FY2021 was approximately HK$401.1 million, up from approximately HK$162.3 million in FY2020[63]. - Basic loss per share for FY2021 was approximately 48.7 HK cents, compared to approximately 19.70 HK cents in FY2020[64]. - The cost of sales increased by approximately HK$218.8 million, from approximately HK$76.0 million in FY2020 to approximately HK$294.8 million in FY2021, mainly due to increased amortization from new film investments[70]. - Total impairment losses for the year amounted to approximately HK$288,636,000, including HK$55,229,000 on financial and contract assets, HK$80,223,000 on film investments, and HK$153,184,000 on prepayments and other assets[94]. Impact of COVID-19 - The media business was significantly affected by the COVID-19 pandemic, leading to delays in film and TV drama projects[15]. - The Group's operating results were negatively impacted due to delays in distribution and income receipt from TV drama and film investments[16]. - The Group's overall business activities slowed down due to the pandemic, affecting revenue generation[15]. - The media business has been adversely affected by the COVID-19 pandemic, leading to delays in film and TV drama projects[60]. - The Group will continue to monitor the COVID-19 situation and assess its impacts on financial performance[34]. Business Strategy and Future Plans - The Group aims to recover trade receivables of gross carrying amount of HK$114.6 million as of 31 December 2021 to improve its financial position[25]. - The Group plans to allocate more resources to the media and culture segment, which is a major growth driver, focusing on film and TV series investment and production[25]. - The Group is exploring new business opportunities and market expansion in Mainland China to enhance shareholder returns[26]. - The Group engaged 8 film directors to diversify and enhance its entertainment business, aiming to broaden income sources[58]. Shareholder and Dividend Information - The Board does not recommend the payment of a final dividend for the year ended 31 December 2021[19]. - The Board does not recommend the payment of a final dividend for the year ended 31 December 2021, consistent with the previous year[91]. Film and Media Performance - The movie "Malignant" grossed a worldwide total of $126,696,475, achieving North American box office champion status in its opening week[44]. - "Malignant" was produced with a budget of $25 million and earned $21 million at the domestic box office during its opening weekend[45]. - The film received a 92% audience score on Rotten Tomatoes, indicating strong positive reception among viewers[44]. - "Malignant" has an IMDb rating of 6.3/10 and a Tomatometer score of 76%[47]. - The film won the ReFrame Stamp for Best Feature at ReFrame 2022 and received multiple nominations at various film awards[48]. Financial Position and Liabilities - The Group's net debt amounted to approximately HK$190.9 million as of 31 December 2021, compared to a net asset value of approximately HK$176.6 million in 2020[21]. - As at 31 December 2021, the Company's capital deficiency was approximately HK$189,848,000, compared to equity attributable to its owners of approximately HK$202,548,000 in 2020[93]. - Financial liabilities at fair value through profit or loss increased by approximately HK$192,023,000 from nil as at 31 December 2020 to approximately HK$192,023,000 as at 31 December 2021, attributed to co-investment agreements with investors in film production projects[81]. Corporate Governance and Committees - The Company's external auditors, Ernst & Young, received an auditor's remuneration of HK$3,068,000 for the year ended 31 December 2021, an increase from HK$2,446,000 in 2020[168]. - The Nomination Committee held 2 meetings during the year ended 31 December 2021[158]. - The Remuneration Committee conducted one meeting in 2021 to discuss remuneration-related matters[166]. - The Company has adopted a Board Diversity Policy to ensure a diverse composition of Directors in terms of skills, experience, knowledge, and gender[160]. - The Directors confirmed their participation in continuous professional development activities during the year[151]. - The Company has established a code of conduct for Directors' securities transactions, which has been complied with throughout the year ended 31 December 2021[152]. - The Audit Committee held 3 meetings during the year ended December 31, 2021, to review the Group's financial reporting and internal control systems[172]. - The Audit Committee confirmed that the consolidated results for the year ended December 31, 2021, complied with applicable accounting standards and legal requirements[173]. Risk Management - The Group's risk management and internal control system aims to provide reasonable assurance in achieving the Company's objectives and safeguarding shareholders' interests[191]. - The Group employs a three-line defense risk management model to identify, assess, mitigate, and manage risks effectively[195]. - The risk management process includes identifying risks, assessing their impact, and determining management strategies to mitigate them[198]. - The Anti-money Laundering Committee is responsible for reviewing and monitoring the Company's anti-money laundering policies and procedures[178].
智数科技集团(01159) - 2022 - 年度财报