Financial Performance - The Group's revenue from media and culture business for 2023 was approximately HK$80.3 million, a 33.5% increase from HK$60.2 million in 2022[18]. - Gross profit for the media and culture business in 2023 was approximately HK$15.1 million, compared to HK$4.0 million in 2022, representing a significant improvement[18]. - The net loss attributable to owners of the Company for the year ended December 31, 2023, was approximately HK$45.7 million, a reduction from a net loss of approximately HK$135.9 million in 2022[18]. - Basic loss per share for the year was approximately 5.55 HK$ cents, down from approximately 16.5 HK$ cents in 2022, indicating a decrease in loss per share[19]. - The Group's total losses amounted to approximately HK$378.3 million for 2023, compared to HK$330.5 million in 2022[24]. - The Group's net deficit increased to approximately HK$378.3 million in 2023, compared to approximately HK$330.5 million in 2022[19]. - The Group's bank balances and cash amounted to approximately HK$52.0 million as of December 31, 2023, down from approximately HK$79.4 million in 2022[121]. - The current ratio as of December 31, 2023, was approximately 0.20, compared to approximately 0.28 in 2022, indicating a decline in liquidity[121]. Business Challenges - The media business has been impacted by the COVID-19 pandemic and the strikes of the Writers Guild of America and Screen Actors Guild-AFTRA in 2023, affecting revenue and gross profit[17]. - Delays in distribution and settlement of income from TV drama and film investments have negatively impacted the Group's operating results[17]. - The slow-down of business activities and postponement of film and TV drama projects have further affected the financial results of the Group[17]. - The Group continues to face challenges in recovering from the impacts of the pandemic and industry strikes, which may affect future performance[17]. - The impact of the COVID-19 pandemic and the strikes in 2023 has led to delays in film and TV projects, affecting future cash flow projections[86][97]. Strategic Initiatives - The Company plans to utilize existing Hollywood intellectual property resources to develop metaverse businesses and expand cross-border e-commerce operations[28]. - 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[29][30]. - A strategic cooperation framework agreement was established with Greenland Digital to enhance metaverse business development and digital product platform construction[35][36]. - The Group is reviewing the future prospects of its other business segments and exploring new business opportunities, particularly in Mainland China[37][40]. - The Group aims to recover development costs and generate revenue through various channels, including online distribution, theatrical releases, and IP licensing[82][84]. - The Group is exploring diversified project structuring approaches, including targeting streaming platforms for quicker cost recovery and increased visibility[81][83]. - The Company entered into a Strategic Cooperation Framework Agreement with Greenland Digital to enhance its metaverse business and expand cross-border e-commerce operations, expected to commence in or around 2024[101]. Film and Media Projects - The Group has developed 44 feature projects, with 38 of them having completed scripts[75]. - The film "Crazy Rich Asians," co-invested by the group, has achieved a global box office of USD 238.5 million since its release[49]. - The film "Midway," with a total budget of approximately USD 100 million, has exceeded USD 30 million in overseas pre-sales, excluding the Greater China area[53]. - "Midway" grossed USD 126.7 million worldwide, achieving a 92% audience score on Rotten Tomatoes[54][58]. - The horror film "Scary Stories to Tell in the Dark" was produced for USD 25 million and has grossed USD 104.5 million worldwide[59]. - The company is collaborating with notable directors such as James Wan and Roland Emmerich for the development and production of motion picture projects[75]. - "Malignant" won the ReFrame Stamp for Best Feature at ReFrame 2022 and received multiple nominations for prestigious awards[67]. - "Marshall," featuring Chadwick Boseman, was nominated for an Oscar for Best Original Song and received numerous other award nominations[68]. - "Umma," produced by Sam Raimi, was released on March 15, 2022, and received the ReFrame Stamp award[72]. - The film "Umma" was praised for its unique blend of horror and intimate portrayal of East Asian culture, garnering significant interest from major studios[72]. Corporate Governance - The Company complied with all applicable provisions of the Corporate Governance Code during the year ended December 31, 2023[152]. - The Board consists of six Executive Directors and three Independent Non-executive Directors, ensuring a diverse leadership structure[159]. - Independent Non-executive Directors possess academic and professional qualifications in accounting, enhancing the Board's effectiveness[160]. - The Board is responsible for corporate strategy, annual and interim results, and major acquisitions, ensuring comprehensive oversight of the company's operations[165]. - The company emphasizes compliance with statutory requirements and internal controls as part of its governance framework[165]. - The Company has established a clear process for the appointment and re-election of Directors, ensuring transparency in governance practices[166]. - The Company has adopted a Board Diversity Policy to promote diversity in terms of skills, experience, knowledge, and gender[184]. - The Company has achieved its target of having at least one female Director and 20% female employees during the year ended December 31, 2023[191]. - The gender ratio in the workforce shows 50% female employees and 50% male employees, with a total of 3 females and 10 males[190]. Employment and Workforce - The Group employed 13 employees as of 31 December 2023, a decrease from 20 employees in 2022[137]. - The Group is committed to providing career development opportunities for female staff, focusing on training senior female employees with relevant experience[197]. - The Group has implemented recruitment practices to ensure a diverse range of candidates are considered for positions[197].
星光文化(01159) - 2023 - 年度财报