SFC(601595)2023-04-26 16:00Company Structure and Ownership - The registered capital of Shanghai Film Co., Ltd. is RMB 280 million, with a total of 448.2 million shares after a capital increase in 2019[1]. - The company has a controlling shareholder, Shanghai Film Group, holding 95.52% of the shares[1]. - The company operates a total of 30 subsidiaries, including various cinema management companies across multiple cities[2][5]. Financial Reporting and Accounting Practices - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of the company's financial status as of December 31, 2022[9][11]. - The company’s financial reports are based on the principle of going concern, indicating ongoing operational viability[10]. - The company has undergone changes in its consolidation scope, which is detailed in the financial report[8]. - The company’s accounting period is from January 1 to December 31 each year, aligning with standard fiscal practices[12]. - The company utilizes RMB as its functional currency for accounting purposes[14]. - The company follows specific accounting treatments for mergers and acquisitions, ensuring proper valuation of assets and liabilities[15]. - The company consolidates financial statements for the entire corporate group as a single accounting entity, reflecting the overall financial position, operating results, and cash flows[19]. - The company applies the equity method for investments in joint ventures, recognizing its share of assets, liabilities, and income from joint operations[23]. Financial Performance - The company reported a net profit attributable to shareholders of -334,795,713.92 yuan for the year 2022, with a cumulative undistributed profit of 28,626,545.59 yuan as of the end of 2022[41]. - The company's operating revenue for 2022 was ¥368,345,326.11, a decrease of 49.62% compared to ¥731,083,518.96 in 2021[92]. - The net profit attributable to shareholders for 2022 was -¥334,795,713.92, representing a significant decline of 1,630.74% from a profit of ¥21,871,531.94 in 2021[92]. - The net cash flow from operating activities was ¥94,603,185.47, down 64.17% from ¥264,049,771.19 in the previous year[92]. - The total assets at the end of 2022 were ¥2,905,963,225.37, a decrease of 16.03% from ¥3,460,677,577.86 at the end of 2021[92]. - The net assets attributable to shareholders decreased by 18.45% to ¥1,574,594,946.55 from ¥1,930,854,910.48 in 2021[92]. - The company's revenue after deducting non-main business income was ¥344,764,339.55, a decline of 50.42% compared to ¥695,361,672.51 in 2021[92]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥370,907,523.39, worsening from -¥24,422,679.51 in 2021[92]. Inventory and Receivables Management - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs when costs exceed net realizable values[65]. - The company uses a perpetual inventory system for inventory management[66]. - The company recognizes contract assets based on the relationship between performance obligations and customer payments, with expected credit loss methods applicable[67][68]. - The total balance of other receivables at the end of the period amounted to 13,618,256.00 yuan, compared to 13,383,175.30 yuan at the beginning of the period[127]. - The total amount of bad debt provision at the end of the period was 12,179,433.22 yuan, with a total book value of 25,797,689.22 yuan[133]. Strategic Plans and Market Outlook - The company plans to focus on expanding its market presence and enhancing its film distribution capabilities in the coming years[92]. - The company will focus on "online and offline integrated development" to innovate in traditional cinema and distribution, aiming for a transformation of its core business[151]. - The company aims to enhance its operational efficiency by transitioning from customer maintenance to traffic operation, and from pure film screening to diversified experiences[152]. - The company will explore new business models by integrating IP with emerging technologies like the metaverse and AR/VR, aiming to transform innovation into revenue[152]. - The management expressed optimism about future recovery as the market stabilizes post-pandemic[92]. Risks and Challenges - The company faces intensified market competition in the film industry, with a shift towards a saturated competition era expected in the short term[157]. - The rise of online media and digital entertainment consumption is leading to a fragmented market, potentially delaying the recovery of box office revenues to pre-pandemic levels[157]. - There is a risk of insufficient supply of quality content, which could negatively impact audience demand and the company's revenue performance[157]. - The company is exposed to risks related to the recovery of receivables and potential asset impairment due to industry recovery uncertainties[157]. - The company relies on leased properties for its cinemas, with an average lease term of 15 years, but faces risks related to lease renewals and potential cost increases[160]. Employee Compensation and Governance - The total pre-tax remuneration for the reporting period amounted to 3.7824 million yuan[170]. - The remuneration for the general manager, Dai Yun, was 620,400 yuan[170]. - The remuneration for the financial director and board secretary, Wang Rui, was 592,700 yuan[170]. - The independent directors received a remuneration of 122,000 yuan each[170]. - The company has a diverse board with a mix of genders and ages, with the youngest director being 39 years old[170]. Revenue Recognition Policies - The company recognizes revenue when the customer obtains control of the related goods or services, which is when the customer can direct the use and obtain almost all the economic benefits[190]. - Revenue from movie screening is recognized at the total ticket sales amount when the service is provided, while pre-sale amounts are initially recognized as contract liabilities[191]. - Advertising service revenue is recognized during the service period based on the agreed standards and prices after confirmation by the service recipient[194]. - Government grants are recognized when the company meets the conditions attached and can receive them, with asset-related grants recognized as deferred income[197].