Financial Performance - Revenue from the media and culture business for 2022 was approximately HK$60.2 million, a decrease from HK$199.4 million in 2021, representing a decline of about 69.8%[15] - Gross profit for 2022 was approximately HK$4.0 million, compared to a gross loss of approximately HK$95.4 million in 2021[15] - The net loss attributable to owners of the Company for 2022 was approximately HK$135.9 million, significantly improved from a net loss of approximately HK$399.3 million in 2021[16] - Basic loss per share for 2022 was approximately 16.50 HK cents, down from approximately 48.48 HK cents in 2021[16] - The Group's net deficit was approximately HK$330.5 million for 2022, compared to approximately HK$189.0 million in 2021[16] - The Board does not recommend the payment of a final dividend for the year ended 31 December 2022[20] Impact of COVID-19 - The COVID-19 epidemic is expected to have a diminishing impact on the Group's media and culture business as restrictions are lifted[21] - The Group anticipates that it may take time for business activities to return to normal levels, with potential continued negative impacts on financial results in the coming years[22] - The Company anticipates that the media and culture business activities will gradually return to normal levels as COVID-19 restrictions are lifted[26][37] - The impact of COVID-19 has continued to affect the financial results, with business activities expected to resume to normal levels in the long term[91][92] Business Strategy and Development - The Company plans to leverage its existing Hollywood intellectual property to develop metaverse businesses and expand cross-border e-commerce operations in Hong Kong and Mainland China[27][37] - The Group is reviewing the future prospects of its other business segments while exploring new business opportunities in Mainland China[31][34] - The Group's strategy includes focusing on technology-driven growth and innovation to support its business recovery and expansion plans[27][37] - A reseller service agreement was signed with Alibaba Cloud, allowing the Group to distribute various cloud computing products, which is expected to broaden the revenue base in the future[97][98] - The Group aims to explore new business opportunities and enhance market opportunities in Mainland China to improve financial performance[99] Film Production and Projects - The Group's media investments and products, including movies and TV drama series, amounted to approximately HK$374.9 million as of 31 December 2022[40][43] - The movie "Midway" had a total investment budget of nearly $100 million and grossed over $30 million in overseas pre-sales outside of Greater China[49] - "Scary Stories to Tell in the Dark" was produced for $25 million and earned $21 million at the domestic box office in its opening weekend, with a worldwide gross of $104,545,505 to date[51][54] - "Malignant" grossed $126,696,475 worldwide and received an audience score of 92% on Rotten Tomatoes[50][53] - "Malignant" was released in theaters and on HBO Max simultaneously, showcasing a multi-platform distribution strategy[55] - "Malignant" received high praise from Stephen King, indicating strong audience interest and potential for future viewership[57][60] - The IMDb rating for "Malignant" is 6.3/10, while the Tomatometer score is 76%, reflecting a generally positive reception[58][61] - "Midway" is noted as Roland Emmerich's first World War II-themed film, highlighting a strategic expansion into historical narratives[49] - "Scary Stories to Tell in the Dark" is based on a bestselling series, indicating a focus on leveraging existing intellectual properties for new film projects[51] - The international sales agency for "Scary Stories to Tell in the Dark" is Sierra/Affinity, emphasizing the company's role in global distribution[54] - "Malignant" won the ReFrame Stamp for Best Feature at ReFrame 2022, showcasing recognition in the industry for its quality[59] - The Group has engaged 8 film directors to diversify and enhance its entertainment business, developing 44 feature projects, with 38 having completed scripts[70][72]. - The film "Umma," produced by Sam Raimi, was released on March 15, 2022, and won the ReFrame Stamp award, highlighting its unique blend of horror and Asian culture[64][67]. - "Marshall," acquired by the Group, received multiple nominations including an Oscar nomination for Best Original Song and won the Audience Choice Award at the Chicago International Film Festival[63][66]. - The Group plans to redirect films suitable for streaming platforms to allow for quicker cost recovery and increased visibility through widespread coverage[77]. - The Group is exploring various financing channels, including international sales and tax refunds, to support its film projects[77]. - The collaboration with A-list talents has led to the joint development of 12 projects, enhancing the Group's portfolio[76]. - The Group aims to retain copyright to establish a new ecosystem, converting part of the visual effects budget into investments[77]. - The film "My Robot Boyfriend" was first broadcast on October 21, 2019, showcasing the Group's engagement in urban love sci-fi comedies[65][68]. - The Group's commitment to film production and distribution is reinforced by its partnerships with renowned directors like James Wan and Roland Emmerich[71][73]. - The film "Umma" garnered significant interest from major studios, indicating its impact on the film industry upon release[64][67]. Corporate Governance - The Board consists of six Executive Directors and three Independent Non-executive Directors, ensuring a diverse leadership structure[143] - The Company complied with all applicable provisions of the Corporate Governance Code during the year ended December 31, 2022, with minor deviations noted[141] - Attendance records show that the Chairman missed one Annual General Meeting (AGM) out of one held, while other Executive Directors had varying attendance rates[147] - The Nomination Committee, established on March 28, 2012, is responsible for reviewing the Board's structure and recommending suitable candidates for directorship[160] - Independent Non-executive Directors confirmed their independence annually, in compliance with Rule 3.13 of the Listing Rules[144] - The Company has adopted a code of conduct for Directors' securities transactions, ensuring compliance throughout the year ended December 31, 2022[159] - Continuous professional development activities for Directors were confirmed through attendance at seminars or self-reading[158] - The Company has a nomination policy that considers professional qualifications, skills, and diversity when assessing candidates for the Board[162] - The Board has reserved decision-making on significant operational and financial matters, including corporate strategy and major acquisitions[150] - The Company encourages Directors to stay updated with legal and regulatory developments to fulfill their responsibilities effectively[156] Financial Oversight - The auditor's remuneration for the year ended December 31, 2022, is HK$2,000,000[178] - The Audit Committee held three meetings during the year ended December 31, 2022[179] - The Remuneration Committee held one meeting in 2022 to discuss remuneration-related matters[172] - The Company aims to maintain a diverse Board in terms of skills, experience, knowledge, and gender appropriate for business development[170] - The Company has established an Anti-money Laundering Committee responsible for reviewing policies and compliance[187] - The Investment Steering Committee is responsible for considering and recommending potential investment projects[194] - The Company has adopted a strict code of conduct for securities trading by directors, ensuring compliance with regulations[165] - The Remuneration Committee considers existing terms of employment contracts for executive and non-executive Directors to be fair and reasonable[177] - The Company has a Board Diversity Policy to promote diversity among Board members[173] - The Audit Committee is responsible for reviewing the Group's financial reporting process and internal control systems[182] - The Board is responsible for maintaining an adequate risk management and internal control system, reviewing its effectiveness annually to safeguard shareholders' interests and the Group's assets[196] - The risk management and internal control system aims to provide reasonable assurance in managing risks associated with achieving the Company's objectives[197] - The Investment Supervisory Committee was established in June 2010, consisting of two executive directors and three independent non-executive directors, responsible for considering and recommending potential investment projects[198]
智数科技集团(01159) - 2023 - 年度财报