Financial Performance - In 2021, CMON Limited reported a revenue increase from approximately $25.1 million to about $37.8 million, marking a significant recovery from the previous year's loss of approximately $4.9 million[13]. - Overall, the company achieved a profit attributable to equity holders of approximately $0.4 million for the year, a turnaround from the previous year's loss[13]. - Revenue increased by approximately 50.3% from about $25.1 million for the year ended December 31, 2020, to about $37.8 million for the year ended December 31, 2021, primarily due to increased wholesale sales[17]. - Gross profit increased by approximately 54.9% from about $9.4 million in 2020 to about $14.5 million in 2021, with gross margin rising from approximately 37.2% to 38.3%[23]. - The company recorded a profit attributable to equity holders of approximately $0.4 million for the year ended December 31, 2021, compared to a loss of about $4.9 million in 2020[30]. - Cash and cash equivalents increased to approximately $3.1 million as of December 31, 2021, from about $509,585 as of December 31, 2020[31]. - The revenue contribution from Kickstarter projects for the year ended December 31, 2021, was approximately $17.4 million, compared to $16.9 million in 2020[37]. Sales and Market Growth - Sales on Kickstarter grew by approximately 5.4% to about $17.4 million, while sales to distributors surged by 137.0% to approximately $20.1 million compared to the previous fiscal year[8]. - The company's sales in Asia increased by approximately 52.1% to about $3.8 million, which is viewed as a key growth driver[8]. - CMON Limited plans to expand its market presence in Asia, particularly targeting end-users and players in China, to enhance market share[15]. - The company successfully launched a game based on licensed and proprietary IP, "Marvel Zombies — A Zombicide Game," which raised $9.0 million on Kickstarter[15]. - The company aims to enhance its game design capabilities and introduce high-quality intellectual properties to drive long-term growth[15]. - The company plans to expand its game portfolio through acquisitions or licensing agreements to increase market share[41]. Expenses and Financial Management - Total sales and distribution expenses rose from about $5.2 million in 2020 to about $6.0 million in 2021, mainly due to increased royalties from licensed games[26]. - Total bank borrowings decreased from approximately $8.8 million as of December 31, 2020, to about $8.3 million as of December 31, 2021[33]. - The amount of successfully launched but not yet delivered Kickstarter projects as of December 31, 2021, was approximately $6.9 million, down from $14.3 million in 2020, with expected delivery in the first half of 2022[37]. Corporate Governance and Compliance - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2021[142]. - The company has adopted corporate governance practices in line with the applicable codes and has complied with all relevant provisions for the year ended December 31, 2021[138]. - The audit committee, composed of three independent non-executive directors, reviewed the financial performance for the year ended December 31, 2021[131]. - The company has appropriate liability insurance for its directors, which is reviewed annually[140]. - The company confirmed compliance with the non-competition agreement for the year ended December 31, 2021[123]. Shareholder Information - The board of directors did not recommend a final dividend for the year ending December 31, 2021, compared to zero in 2020[68]. - The company has adopted a dividend policy to allow shareholders to enjoy profits while retaining liquidity for future development opportunities[192]. - The board will consider various factors, including financial performance and capital needs, when determining dividend payments[194]. - Shareholders can propose matters for consideration at the company's general meetings, provided they hold at least 10% of the voting shares[196]. Risk Management and Internal Control - The company has no internal audit department, and the board directly oversees the internal control system's effectiveness[184]. - The management is responsible for designing and maintaining the risk management and internal control systems to ensure compliance with relevant laws and regulations[185]. - The company engaged an independent third party to review the internal control system's effectiveness during the year ended December 31, 2021[184]. - The audit committee regularly reviews the effectiveness of the company's risk management and internal control systems[191]. - The company has not identified any significant issues that would adversely affect the effectiveness and adequacy of its risk management and internal control systems[191].
CMON(01792) - 2021 - 年度财报