Financial Performance - The Group's revenue for the year 2023 was HK$72,557,000, a decrease of 45.4% compared to HK$133,101,000 in 2022[4] - The loss attributable to owners of the Company for 2023 was HK$127,733,000, compared to a loss of HK$180,884,000 in 2022, indicating a 29.4% improvement[4] - Total assets decreased to HK$100,929,000 in 2023 from HK$246,422,000 in 2022, representing a decline of 59.0%[4] - Total liabilities were HK$353,744,000 in 2023, down from HK$374,734,000 in 2022, a reduction of 5.6%[4] - In 2023, the Group's total revenue decreased by approximately 45.5% to approximately HK$72,557,000, mainly due to a decrease in sales from the household segment and esports segment[47] - The esports business revenue for the year ended 31 December 2023 was approximately HK$24,860,000, representing a decrease of approximately 56.4% compared to HK$57,017,000 in 2022[30] - The Group's blockchain gaming segment reported revenue of approximately HK$20,796,000, down from HK$29,083,000 in 2022, with a segment loss of approximately HK$71,649,000[31] - Revenue from the cloud computing and data storage business was approximately HK$5,292,000 in 2023, representing a year-on-year decrease of 57.5% from HK$12,447,000 in 2022, with a segment loss of approximately HK$20,439,000[53] - Revenue from the household products business decreased to approximately HK$18,292,000 in 2023, down 43.58% from HK$32,424,000 in 2022, while the segment profit was approximately HK$23,959,000[54] - The Group's revenue from property investment business increased to approximately HK$1,642,000 in 2023 from HK$1,332,000 in 2022, with a segment loss of approximately HK$95,000[59] - Revenue from the money lending business increased to approximately HK$1,673,000 in 2023, up from HK$798,000 in 2022, with a segment loss of approximately HK$2,903,000[60] Strategic Initiatives - The Company plans to invest resources in technology-related businesses, particularly in blockchain games, to enhance competitiveness in the online gaming and esports sectors[19] - The Company aims to broaden its revenue sources and maximize shareholder returns through strategic investments in emerging technologies[19] - The Group plans to negotiate with existing and potential customers regarding the use of Filecoin and Chia mining machines to increase capital inflow[34] - The Group plans to invest resources to explore blockchain gaming and develop a large-scale amusement park called Metasens, incorporating Web3.0 technology[66] - A new studio has been established to develop casual games, with the first game projected to launch by the end of this year or the first quarter of next year, targeting regions including Taiwan, Hong Kong, Macau, Southeast Asia, and South America[29] Market Outlook - The global gaming market revenue is projected to reach US$184.0 billion in 2023, with the number of gamers expected to hit 3.38 billion[24] - The gaming market is anticipated to grow to US$205.7 billion by 2026, with a compound annual growth rate (CAGR) of 4.7% from 2021 to 2026[24] - The long-term development prospect of the game market is considered positive, with a strong momentum in blockchain games, prompting the Group to explore game publishing opportunities[46] - The global economic growth rate was revised down to 3.0% for 2023, with increasing risks to the economic outlook[24] Operational Challenges - The Group will take initiatives to increase revenue and reduce costs in response to market challenges[54] - The Group recorded a reversal of impairment on cryptocurrencies of approximately HK$2,725,000 in 2023 as the cryptocurrency market stabilized[72] - An impairment loss of approximately HK$4.6 million was incurred in 2023, compared to HK$2.5 million in 2022, due to limited repayments from borrowers[65] - Finance costs increased from approximately HK$12,203,000 in 2022 to approximately HK$16,793,000 in 2023 due to increased loans from related parties[72] Employee and Safety Management - The Group employed approximately 177 staff as of December 31, 2023, and emphasizes continuous training and development to enhance employee skills and productivity[112][135] - The Group has not experienced any work-related accidental fatalities in the past three years, indicating a strong focus on employee safety[130] - The average training hours for male employees in the game publishing business is 3.80 hours, while for female employees it is 5.21 hours[140] - The percentage of employees trained in the game publishing business is 63.64%, in the esports business is 67.74%, and in the cloud computing and data storage business is 57.89%[142] - The company provides subsidies for employees participating in accredited external courses to enhance their professional knowledge and skills[140] Corporate Governance - As of December 31, 2023, the Board consists of eight members, including the Chairman, three executive Directors, and four independent non-executive Directors[160] - The Board meets regularly, with a total of six Board meetings held during the year ended December 31, 2023[168] - All independent non-executive Directors have confirmed their independence annually, and the company considers them independent[172] - The company has implemented a comprehensive supply chain management mechanism, including a code of conduct and supplier assessment system[159] - The company requires suppliers to comply with minimum environmental and social performance standards, as well as local laws and regulations[156] - The Board has adopted a diversity policy to enhance transparency and governance, considering various factors such as gender, age, and professional experience in appointments[161] - The company conducts annual SSI system audits of suppliers to ensure compliance with corporate social responsibility standards[159] - The company prioritizes partnerships with suppliers that have sustainable development principles and corporate social responsibility[159]
帝国科技集团(00776) - 2023 - 年度财报