JiShi Media(601929)2023-04-28 16:00Financial Performance - The net profit attributable to shareholders of the parent company for 2022 was -424,642,809.04 CNY, a decrease of 1,699.40% compared to the previous year's profit of 26,550,103.08 CNY[5]. - Total operating revenue for 2022 was 1,812,997,058.85 CNY, representing a decline of 12.83% from 2,079,765,156.57 CNY in 2021[23]. - The net cash flow from operating activities decreased by 24.93% to 685,096,812.81 CNY from 912,655,869.44 CNY in the previous year[23]. - The company's total assets at the end of 2022 were 14,690,759,118.19 CNY, down 3.23% from 15,180,922,787.31 CNY at the end of 2021[24]. - The basic earnings per share for 2022 was -0.1305 CNY, a decrease of 1,635.29% compared to 0.0085 CNY in 2021[25]. - The net profit attributable to shareholders of the listed company for the year was approximately -RMB 425.80 million, with quarterly figures of RMB 11.94 million, -RMB 109.62 million, RMB 9.61 million, and -RMB 336.58 million[27]. - The company reported a significant increase in the net profit attributable to shareholders after deducting non-recurring gains and losses, which was -474,138,161.63 CNY for 2022, compared to -88,950,087.77 CNY in 2021, reflecting a 433.04% increase in losses[23]. - The weighted average return on net assets for 2022 was -6.04%, a decrease from 0.38% in 2021[25]. Operational Developments - The company launched its 5G trial commercial services in July 2022, marking its entry into a full-service operational era with a new model of "wired + 5G" integrated development[36]. - The company signed interconnection and settlement agreements with three major operators to enhance its 5G network construction and operational capabilities[36]. - The company implemented a series of promotional activities and developed various 5G product packages to meet diverse customer needs, resulting in significant marketing outreach with approximately 240,000 views and nearly 40,000 shares across various media platforms[37]. - The company achieved a significant reduction in net user loss, marking the first time since 2015 that the decline in users has narrowed substantially, indicating a historical turnaround in basic business operations[36]. - The company has completed the fiber optic network renovation for rural areas in Jilin Province, with urban network renovations expected to be completed by July 2023[41]. - The company has secured multiple contracts in the public security sector, including projects for the Jilin Provincial Public Security Department and various local police stations, enhancing its market presence[39]. - The company has initiated a "Smart Deer Industry" project in collaboration with the Dongfeng County government, establishing a comprehensive information service platform[40]. - The company has established a new financial management system, including project management and tax management protocols, to enhance operational efficiency[46]. Financial Management and Governance - The company has established a governance structure that complies with relevant laws and regulations, ensuring effective oversight and transparency[102]. - The company maintains independence from its controlling shareholder, ensuring separate operations and compliance with decision-making processes[103]. - The company has implemented measures to manage insider information and prevent unauthorized trading of its stock[103]. - The company held its annual general meeting on May 20, 2022, approving nine resolutions, including the annual financial report[104]. - The company conducted a temporary shareholders' meeting on June 2, 2022, to discuss the issuance of non-public corporate bonds[104]. - The total pre-tax remuneration for the chairman, general manager, and vice presidents during the reporting period amounted to 5.4075 million CNY[110]. - The company has a structured approach to determining the remuneration of its board members and senior management, ensuring compliance with local regulations[115]. - The company has appointed Beijing Xinghua Accounting Firm as its auditor for the 2022 fiscal year, with an audit fee of RMB 800,000 and an internal control audit fee of RMB 400,000[142]. Market and Competitive Landscape - The company faces market competition risks due to the increasing impact of IPTV, internet TV, and mobile video on traditional broadcasting services[100]. - There are technology risks associated with the rapid integration of new media technologies, which may increase capital expenditures and impact financial performance[100]. - The company is focused on achieving a balance between social and economic benefits, with a market-oriented approach to drive growth in both consumer and enterprise markets[93]. - The company is actively exploring new service areas such as big data, cloud computing, and artificial intelligence, aiming to provide high-quality and cost-effective 5G services[90]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 6,320, with 3,417 in sales, 1,374 in technical roles, and 270 in finance[128]. - The company plans to continue its three-part salary system consisting of basic salary, performance salary, and reward salary, focusing on user growth and performance improvement[130]. - The company has established a data-sharing mechanism between the salary system and the financial system to enhance salary supervision[130]. - The management team consists of experienced professionals with backgrounds in engineering, finance, and media[110]. Research and Development - Research and development expenses rose by 7.58% to ¥66,779,743.30, up from ¥62,075,605.24 in the previous year[64]. - The company holds multiple patents related to its I-PON technology, including 8 invention patents and 5 utility model patents in China[60]. - The company is focused on enhancing its technological capabilities in 4K and 8K video content through its proprietary I-PON technology[60]. Assets and Liabilities - The company's cash and cash equivalents decreased by 66.32% to 1,032,607,424.63, representing 7.03% of total assets[77]. - Long-term borrowings rose to 2,749,405,166.09 RMB, a significant increase of 45.98% due to new long-term bank loans[78]. - The company's total assets at the end of 2022 were 14,690,759,118.19 CNY, down 3.23% from 15,180,922,787.31 CNY at the end of 2021[24].