Financial Performance - In 2023, the total revenue decreased by 30.3% to approximately HKD 490.2 million, primarily due to reduced income from sports and leisure gaming businesses [18]. - The company recorded a loss of HKD 23.3 million in 2023, compared to a profit of HKD 17.7 million in 2022, due to decreased income from the sale of a subsidiary and foreign exchange gains [18]. - Total revenue for 2023 was approximately HKD 490.2 million, a decrease of 30.3% compared to HKD 703.5 million in 2022 [41]. - Gross profit for 2023 was approximately HKD 179.4 million, a decrease of 28.9%, with a slight increase in gross margin from 35.9% in 2022 to 36.6% in 2023 [43]. - Other income and losses recorded HKD 6.0 million in 2023, a significant decrease from HKD 84.6 million in 2022, primarily due to the sale of a subsidiary in the previous year [44]. - Selling and marketing expenses decreased by 23.7% to HKD 146.1 million in 2023, mainly due to reduced marketing and advertising costs [45]. - Administrative expenses decreased by 21.6% to HKD 45.9 million in 2023, due to cost reallocation and restructuring measures [46]. User Growth and Engagement - The focus product "Crazy Red Single" generated revenue exceeding HKD 227.6 million in 2023, with average monthly active users increasing by 16.1% compared to 2022 [17]. - The total user base increased by 22.8% compared to 2022, indicating a growing interest among younger lottery users and urban white-collar workers [17]. - The user base of China Sports Lottery Network has exceeded 200 million, positioning it among the top platforms in the Chinese football lottery sector [24]. - As of December 31, 2023, the platform accumulated 87 million registered users, an increase of 22.8% from the end of 2022 [38]. Strategic Initiatives and Future Outlook - The upcoming 2024 Paris Olympics is expected to significantly boost revenue, profit, and traffic for the company, as it is the first fully open Olympic event post-pandemic [14]. - The company aims to leverage AI technology and big data resources to enhance the quality of its digital sports entertainment offerings [17]. - The company plans to leverage major sporting events in 2024, including the UEFA European Championship and the Summer Olympics, to drive revenue growth in the sports lottery market [36]. - The company is positioned to capitalize on the rapid growth of the sports industry in China, with a target of reaching a market size of RMB 5 trillion by 2024 [14]. - The company plans to focus on its core business of digital sports entertainment, utilizing a precise market positioning strategy combining sports lottery new retail and "Crazy Red Single" offerings [14]. Sustainability and Environmental Impact - In 2023, the total greenhouse gas emissions amounted to 139.26 tons of CO2 equivalent, with direct emissions at 3.46 tons, indirect emissions at 87.65 tons, and other indirect emissions at 48.15 tons [105]. - The company generated 12,125 kg of non-hazardous waste from daily office operations, equating to 24.7 kg per million HKD in revenue [108]. - The total electricity consumption for 2023 was 91,725 kWh, representing 187.1 kWh per million HKD in revenue [111]. - Water usage in 2023 was recorded at 26,905 cubic meters, which translates to 54.9 cubic meters per million HKD in revenue [111]. - The company has implemented energy-saving measures, including the use of LED lighting and regular checks on electrical appliances to reduce energy consumption [112]. - The company has adopted a paperless office approach, encouraging the use of electronic documents to minimize paper usage [116]. - The company has initiated a waste classification and recycling program to manage solid waste effectively [107]. - The company emphasizes the importance of water conservation and has implemented measures to reduce water usage in daily operations [115]. - The company achieved its 2023 sustainability goals, maintaining greenhouse gas emissions density and waste production density at 2022 levels [120]. Corporate Governance and Management - The company is committed to high standards of corporate governance, ensuring compliance with ethical standards to maximize long-term shareholder value [175]. - The company has adhered to all provisions of the corporate governance code during the fiscal year ending December 31, 2023 [176]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a diverse range of business, financial, technical, management, and leadership experience [180]. - Continuous professional development is encouraged, with all directors participating in training or seminars during 2023 to enhance their knowledge and skills [192]. - The company ensures ongoing communication with shareholders and key stakeholders to align with its purpose and values [183]. Employee Development and Training - The group employs a total of 97 employees as of December 31, 2023 [75]. - A total of 4,612 training hours were provided to employees in 2023, averaging 47.5 hours per employee [134]. - The company has established a comprehensive talent management system to attract and retain skilled employees, ensuring equal opportunities regardless of gender, race, or other factors [122]. - The company has developed a talent cultivation plan in collaboration with educational institutions to ensure a steady supply of skilled personnel for its ongoing development [133]. Compliance and Risk Management - The group faces regulatory risks primarily due to its core business being based on China's internet infrastructure [74]. - The group has taken measures to comply with new laws and regulations to mitigate risks related to product liability [74]. - The company has implemented a comprehensive user data protection strategy, including strict access controls and encryption measures to safeguard user information [148]. - The company has established a "Responsible Lottery" framework to promote responsible gambling practices and ensure compliance with regulatory standards [144]. - The group emphasizes integrity in operations and adheres to anti-corruption laws in China and Hong Kong [155].
疯狂体育(00082) - 2023 - 年度财报