Impairment Loss and Copyrights - The company recorded an impairment loss of RMB 562.6 million for the year ended December 31, 2021, which accounted for 97.7% of the net loss for the same period [9]. - The total number of impaired copyrights was 30,024, with a carrying value before impairment of RMB 639.89 million and a value in use of RMB 77.29 million [10]. - Domestic market impaired copyrights amounted to 15,070, with a carrying value before impairment of RMB 258.17 million and an impairment loss of RMB 188.14 million [10]. - The total carrying value of copyrights, both impaired and unimpaired, was RMB 730.54 million as of December 31, 2021 [10]. - The company is committed to monitoring the dynamic and uncertain situation regarding asset impairment due to the evolving nature of the pandemic [9]. - The company continues to adhere to accounting standards and policies for impairment reviews to ensure accurate financial reporting [20]. - The company will continue to perform annual impairment tests as required by accounting policies [20]. Market Impact and Recovery - The overall travel market and the company's operations were significantly impacted by COVID-19, leading to a decline in sales demand both domestically and internationally [6]. - The company anticipates a V-shaped recovery trend in the domestic tourism market, reflecting confidence in future development [5]. - The online electronic guide sales revenue from the overseas market primarily came from domestic tourists, which was severely affected by travel restrictions [7]. - The company did not foresee the COVID-19 pandemic's impact extending throughout 2021, despite ongoing international travel restrictions [7]. Financial Projections and Costs - The company expects continued growth in revenue from the domestic market, driven by the resilience of the Chinese economy and demand for travel and leisure [5]. - The estimated growth rate for the next 5 to 10 years is projected at 2.5% [15]. - The company anticipates an operating capital growth rate of 8.33% [15]. - The operating cost for the year was reported at 17.2%, an increase from 14.7% in the previous year [18]. - The depreciation expense for fixed assets was recorded at 0.81%, up from 0.67% in the previous year [18]. - The cash flow forecasts are based on reasonable assumptions reflecting the company's best estimates [12]. Valuation and Accounting Policies - The company adopted a post-tax discount rate of 17% for the valuation of intangible assets, reflecting current market conditions and business risks [13]. - The tax rate applied in the valuation is between 15% and 25% [15]. - The remaining useful life for the intangible assets is estimated to be between 0.1 to 10 years [15].
LVJITECH(01745) - 2021 Q4 - 年度财报