SINO-ENTERTAIN(HK:06933)2024-04-26 11:03Financial Performance - The total revenue for the year ended December 31, 2023, was approximately RMB 8,998,000, a decrease of about 26.9% compared to approximately RMB 12,302,000 for the year ended December 31, 2022[16]. - The company recorded a loss attributable to owners of the company of approximately RMB 103,378,000 for the year, compared to a loss of approximately RMB 97,525,000 for the previous year[8]. - Revenue from joint publishing of third-party games was approximately RMB 8,015,000, down from approximately RMB 10,750,000 in the previous year[19]. - The blockchain technology business generated approximately RMB 87,000 in revenue, significantly down from RMB 1,552,000 in the previous year[20]. - The company did not record any revenue from self-developed games during the year, consistent with the previous year[17]. - The company reported a gross loss of approximately RMB 14,374,000 for the year, compared to a gross loss of RMB 3,714,000 for the year ended December 31, 2022, primarily due to decreased revenue and increased promotional fees charged by game platform operators[22]. - The company confirmed impairment losses on intangible assets totaling approximately RMB 12,546,000, with specific impairments of RMB 1,121,000 for licenses, RMB 176,000 for mobile game aggregation platforms, and RMB 11,249,000 for game publishing rights[28]. - The total loss attributable to the company's owners for the year was approximately RMB 103,378,000, compared to a loss of RMB 97,525,000 for the year ended December 31, 2022, primarily due to decreased total revenue and increased sales costs and administrative expenses[32]. Business Strategy and Development - The company plans to focus on developing high-growth potential businesses, including new games with innovative elements such as blockchain technology[9]. - The company has submitted approval applications for two game titles to the National Press and Publication Administration, anticipating future game license approvals[8]. - The number of new game licenses approved by the National Press and Publication Administration has increased, indicating a potential recovery in the market[8]. - The company will regularly review its business strategies to capture opportunities in both China and overseas markets[15]. - The company primarily engages in mobile game publishing, custom software development, and blockchain technology[47]. Financial Position and Assets - As of December 31, 2023, the company's current assets net value was approximately RMB 86,647,000, down from RMB 183,768,000 as of December 31, 2022, with cash and cash equivalents at approximately RMB 79,569,000[33]. - The company's debt-to-equity ratio as of December 31, 2023, was approximately 32.2%, a significant decrease from 73.1% as of December 31, 2022, indicating improved financial stability[34]. - The company had no bank borrowings as of December 31, 2023, compared to bank borrowings of approximately RMB 47,748,000 as of December 31, 2022, reflecting a shift towards a more conservative capital structure[34]. - The distributable reserves of the company as of December 31, 2023, were approximately RMB 591 million, down from RMB 639 million in 2022[51]. Employee and Operational Costs - Employee costs increased to approximately RMB 13,698,000 from RMB 12,231,000 for the year ended December 31, 2022, mainly due to increased share-based payment expenses[25]. - The company employed 28 staff members as of December 31, 2023, down from 35 in 2022[44]. Corporate Governance - The board of directors includes both executive and non-executive members, with specific terms of service established[56]. - The company has adopted a set of corporate governance practices and has complied with the Corporate Governance Code throughout the year[112]. - The company has established a remuneration committee responsible for reviewing the remuneration policy and all remuneration structures for directors and senior management[97]. - The board consists of six members, including two executive directors and three independent non-executive directors, complying with listing rules regarding board composition[123]. - The company has arranged training for directors to ensure they understand their roles and responsibilities under the listing rules[133]. Shareholder Communication and Policies - The company has established a shareholder communication policy to ensure appropriate responses to shareholder opinions and questions[184]. - Shareholders can submit written inquiries to the board, as the company generally does not handle oral or anonymous inquiries[168]. - The company has established a dividend policy that considers various factors, including economic conditions, actual and expected financial results, and cash flow status, but does not guarantee any specific dividend amount[170][172]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report is prepared in accordance with the Hong Kong Stock Exchange's listing rules, emphasizing the importance of ESG for long-term development[187]. - The report covers the group's performance in ESG areas, including operational management, employment practices, environmental protection, and community investment[189]. - The company has identified key ESG issues through stakeholder engagement and annual assessments, prioritizing employee health and safety, product responsibility, and compensation benefits[199]. - The company is committed to environmental management and has established a system for environmental protection and resource conservation, ensuring compliance with relevant laws and regulations[200].