Financial Performance - The company's revenue for 2021 was RMB 8,668,244 thousand, an increase of 1.67% compared to RMB 8,525,701 thousand in 2020[8]. - Gross profit for 2021 reached RMB 4,599,443 thousand, up from RMB 4,234,076 thousand in 2020, reflecting a growth of 8.63%[8]. - Operating profit for 2021 was RMB 2,172,640 thousand, a significant recovery from an operating loss of RMB 4,474,668 thousand in 2020[8]. - The net profit attributable to equity holders of the company for 2021 was RMB 1,846,609 thousand, compared to a loss of RMB 4,483,869 thousand in 2020[8]. - The company reported a total comprehensive income of RMB 1,764,723 thousand for 2021, a significant recovery from a loss of RMB 4,532,508 thousand in 2020[8]. - Total revenue for the year ended December 31, 2021, was RMB 8.7 billion, representing a 2% year-over-year growth[10]. - Profit attributable to equity holders increased by 34% year-over-year to RMB 1.23 billion, benefiting from the growth of core business and New Classics Media's profits[10]. - The company reported a total of 1,022,026,549 shares outstanding as of December 31, 2021[56]. Assets and Equity - Total assets increased to RMB 23,297,314 thousand in 2021 from RMB 21,315,760 thousand in 2020, representing a growth of 9.30%[9]. - The total equity attributable to equity holders of the company rose to RMB 17,186,455 thousand in 2021, up from RMB 15,093,507 thousand in 2020, marking an increase of 13.87%[9]. - Non-current assets amounted to RMB 10,567,004 thousand in 2021, compared to RMB 9,815,429 thousand in 2020, indicating a growth of 7.66%[9]. - Current assets also increased to RMB 12,730,310 thousand in 2021 from RMB 11,500,331 thousand in 2020, reflecting a growth of 10.70%[9]. User Engagement and Market Expansion - Monthly active users for online business reached a historical high of 249 million in 2021, driven by content upgrades and community operation strategies[10]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[8]. - The company aims to enhance its IP development capabilities and expand into international markets, with a focus on creating long-lasting IPs[12]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[46]. Product Development and IP Strategy - The company is implementing a three-phase strategy to enhance the value of literary IP, including multimedia adaptation, commercialization, and extending the IP lifecycle[10]. - The company launched new hit series such as "Human World," which achieved the highest ratings in nearly 8 years for CCTV's prime time slot, and "Snow in the Sword" with a total view count of nearly 7 billion[11]. - The company is actively developing new adaptations of classic IPs, including sequels for popular series such as "Qing Yu Nian" and "Zhui Xu" to further capitalize on existing successes[12]. - The company is focused on expanding its market presence through strategic partnerships and acquisitions in the media and technology sectors[43]. Financial Management and Governance - The company has established a remuneration committee to review the remuneration policy for the board and senior management[52]. - The company has adopted the corporate governance code as its own governance code and has complied with all applicable provisions during the reporting period[115]. - The board believes that good corporate governance is crucial for the long-term success and sustainable development of the company[115]. - The company has established a risk management system that includes roles, responsibilities, and relevant risk management policies and processes, ensuring long-term growth and sustainability[136]. Environmental, Social, and Governance (ESG) Initiatives - The company has committed to full compliance with the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring transparency in its disclosures[157]. - The company engages in community investment and charitable activities to enhance positive social impact[160]. - The company has established a management framework for ESG, supported by the board of directors and senior management, to guide daily operations and risk management[160]. - The company emphasizes the provision of high-quality and healthy works, protection of intellectual property, and maintenance of employee health as very important ESG issues[165]. Employee Management and Development - The company has a dual career path system for promotions, allowing employees to apply for advancement based on merit[179]. - The company offers competitive compensation linked to employee performance to attract and retain talent[180]. - The company has established a comprehensive employee assistance program, including a psychological counseling hotline and stress relief activities[183]. - The employee turnover rate for 2021 was 40.6%, with a higher rate of 45.7% for those under 30 years old[177]. Risk Management - The company has identified nine significant risks in 2021, including "macroeconomic risk," "product manufacturing risk," and "human resources risk," which were newly added due to the global economic uncertainty and the impact of the COVID-19 pandemic[136]. - The company faces various major financial risks, including foreign exchange risk, market risk, credit risk, and liquidity risk, with detailed measures outlined in the financial statements[136]. - The company has implemented appropriate measures to manage key risks to an acceptable level as determined by the board of directors[136]. Strategic Partnerships and Collaborations - The company is collaborating with Tencent for joint investments in film and television production, game development, and other products[96]. - The company has established a partnership with Sogou for content cooperation and game licensing[96]. - The company continues to explore new business opportunities and market expansion strategies to drive future growth[43]. Compliance and Regulatory Matters - The company has established contractual arrangements to gain actual control over the businesses operated by Shanghai Hongwen and New Classics Media, allowing it to consolidate their financial performance into its financial statements[101]. - The company has submitted a copy of the auditor's letter to the stock exchange, confirming the results of the review of related party transactions[100]. - The group has applied for and received exemptions from the stock exchange regarding certain contractual arrangements, ensuring compliance with relevant regulations[111].
阅文集团(00772) - 2021 - 年度财报