Financial Performance - In 2023, CMON Limited's gross margin improved by over 20%, and net profit increased by nearly 50% compared to 2022[8]. - Total revenue for the fiscal year decreased by approximately 0.6% to about $45.1 million from approximately $45.3 million in the previous fiscal year[14]. - Revenue from wholesale sales decreased by about 0.6% to approximately $18.6 million, down from about $19.8 million in the previous year[14]. - Revenue generated from Kickstarter projects increased from approximately $25.1 million to about $26.4 million, attributed to higher sales from six projects in 2023 compared to five in 2022[14]. - Total revenue for the year ended December 31, 2023, was approximately $45.05 million, a decrease of about 0.6% from $45.34 million in 2022[17]. - Gross profit increased by approximately 28.2% to about $23.6 million for the year ended December 31, 2023, compared to approximately $18.4 million in 2022, with a gross margin improvement of 11.8 percentage points to 52.4%[20]. - The company reported a net profit attributable to equity holders of approximately $0.8 million for the year ended December 31, 2023, up from about $0.6 million in 2022[26]. Revenue Sources - Board games accounted for approximately 85.8% of total revenue in 2023, generating about $38.6 million, compared to 86.5% and approximately $39.2 million in 2022[15]. - The company shipped Kickstarter projects contributing approximately $26.3 million in revenue for the year ended December 31, 2023, compared to $25.1 million in 2022[35]. - The company launched four Kickstarter games in 2023, raising approximately $4.8 million, $3.8 million, $0.7 million, and $2.6 million respectively[11]. Expenses and Costs - Sales and distribution expenses rose to approximately $9.6 million in 2023 from about $7.8 million in 2022, partly due to an increase in patent fees and salary expenses[22]. - General and administrative expenses increased to approximately $12.2 million in 2023 from about $9.3 million in 2022, primarily driven by higher game development costs[23]. - Other income decreased to $62,898 in 2023 from $138,628 in 2022, mainly due to a reduction in patent income[21]. Market Strategy and Growth - CMON Limited plans to expand its market presence in Asia and diversify its product offerings to achieve long-term growth[12]. - The company aims to introduce new games based on its proprietary IP and popular licensed IPs in 2024, enhancing its revenue base and competitive position[12]. - The group has identified potential crowdfunding platforms other than Kickstarter for game launches, enhancing internal capabilities for launching games on its own website if necessary[47]. Financial Position - Cash and cash equivalents were approximately $3.2 million as of December 31, 2023, compared to $3.9 million as of December 31, 2022[27]. - The total bank borrowings of the company were approximately $5.8 million as of December 31, 2023, down from $7.3 million in 2022[31]. - The asset-liability ratio as of December 31, 2023, was approximately 48.1%, a decrease from 50.6% in 2022[40]. - As of December 31, 2023, the company's distributable reserves for equity holders were approximately $18.5 million, an increase from $17.8 million as of December 31, 2022[87]. Corporate Governance - The board of directors includes experienced professionals with extensive backgrounds in finance and management, enhancing the company's governance[64]. - The company has established compliance procedures to ensure adherence to relevant laws and regulations in Cayman Islands, Singapore, China, the United States, and Hong Kong[78]. - The audit committee consists of three independent non-executive directors who reviewed the group's accounting policies and financial reporting matters[130]. - The company has adopted a board diversity policy to enhance the effectiveness of the board[142]. Employee and Labor Relations - As of December 31, 2023, the total employee cost amounted to approximately $4.0 million, compared to $3.9 million in 2022, with the number of employees increasing from 78 to 87[37]. - There were no labor disputes reported, indicating good working relationships with employees during the fiscal year ending December 31, 2023[79]. Environmental Commitment - The company is committed to providing an environmentally friendly atmosphere while balancing environmental and economic needs[75]. - The group encourages environmentally friendly practices, including double-sided printing and the use of recycled paper[76]. - The group emphasizes environmental considerations in product design and production, aiming to minimize waste and packaging materials[76]. Shareholder Relations - The company emphasizes effective communication with shareholders to enhance investor relations and ensure timely and transparent information disclosure[186]. - The company has established a shareholder communication policy to facilitate two-way communication with shareholders[186]. - Shareholders have the right to propose matters for consideration at the general meeting, provided they hold at least 10% of the voting shares[192]. Risk Management - The company continues to monitor foreign exchange risks and may consider hedging significant foreign currency risks as needed[42]. - Major operational units are responsible for daily risk management activities, including identifying and mitigating significant risks[180]. - The risk management and internal control systems are deemed effective and adequate for the year ending December 31, 2023[182].
CMON(01792) - 2023 - 年度财报