Financial Performance - Revenues for the year ended December 31, 2022, were RMB 129,321,000, a decrease of 51.2% compared to RMB 265,158,000 in 2021[14] - Gross profit for 2022 was RMB 10,829,000, down from RMB 21,729,000 in 2021, reflecting a gross margin decline[14] - Operating loss for 2022 was RMB 80,476,000, an improvement from a loss of RMB 213,310,000 in 2021[14] - Loss attributable to owners of the Company was RMB 169,809,000, compared to RMB 187,468,000 in the previous year, indicating a reduction in losses[14] - Basic loss per share for 2022 was RMB 0.1668, slightly better than RMB 0.2029 in 2021[14] - The net loss after taxation was approximately RMB167.9 million, slightly improved from a loss of RMB188.9 million in 2021[33] - The net loss for the year was RMB 167.9 million in 2022, a decrease of 11.1% compared to RMB 188.9 million in 2021[73] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 257,289,000, an increase from RMB 240,045,000 in 2021[16] - Total liabilities decreased to RMB 219,333,000 in 2022 from RMB 359,565,000 in 2021, showing improved financial stability[16] - Equity attributable to owners of the Company improved to RMB 5,686,000 from a deficit of RMB 125,626,000 in 2021[16] - The gearing ratio improved to 21.2% in 2022 from 44.7% in 2021, indicating a stronger financial position[1] - Cash and bank balances increased to approximately RMB 46.6 million in 2022 from RMB 9.8 million in 2021[84] - As of 31 December 2022, the Group's current liabilities exceeded its current assets by RMB58,200,000, with cash and cash equivalents of approximately RMB46,025,000[89] Revenue Breakdown - Revenue from newspapers and public vehicles advertising was RMB6.5 million, a decrease of 51.2% from RMB13.3 million in 2021[50] - Revenue from marketing and consulting services was approximately RMB54.1 million, representing a decrease of 28.0% compared to 2021[51] - Revenue from printing services decreased to RMB3.0 million, down 28.6% from 2021, with a gross profit margin of 9.8%[51] - For the twelve months ended December 31, 2022, the Group's revenue from sales of agricultural products was approximately RMB61.0 million, a decrease from RMB171.7 million in 2021, with a gross profit margin of 13.6%[55] - Total revenue decreased by 51.2% from RMB 265.2 million in 2021 to RMB 129.3 million in 2022, primarily due to a decrease in revenue from agricultural products[63] - Revenue from agricultural products fell from RMB 171.7 million in 2021 to RMB 61.0 million in 2022, a decrease of 64.5%[63] Market Conditions - The advertising market in China decreased by 11.8% year-on-year in 2022, with traditional media revenues declining significantly[24] - The overall gross profit margin decreased to 8.4% in 2022 from 8.2% in 2021, reflecting ongoing challenges in the advertising market[1] - The size of China's Internet advertising market was approximately RMB 508.8 billion, representing a decrease of 6.38% compared to 2021, marking the first negative growth in nearly seven years[41] - The total size of the advertising and marketing market was approximately RMB 1,123.8 billion, a decrease of 3.19% compared to the previous year[41] - The total box office in China for 2022 was RMB30.067 billion, a decrease of 36.07% compared to RMB47.033 billion in 2021, and only half of the RMB64.266 billion in 2019[44] Strategic Focus - The Company is focusing on new product development and market expansion strategies to enhance future performance[12] - Management anticipates a gradual recovery in revenues and profitability as market conditions improve[12] - The Group aims to develop integrated projects in film and media, focusing on unique environmental elements and cultural heritage[34] - The Group aims to restructure its publishing and advertising businesses by consolidating with cultural and film media businesses in PRC to broaden long-term income sources[166] - The company aims to leverage favorable factors to continue developing its existing advertising, marketing, consulting, and agricultural businesses[167] Cost Management - Selling and marketing expenses decreased by 63.5% from RMB 26.3 million in 2021 to RMB 9.6 million in 2022[70] - General and administrative expenses decreased by 41.4% from RMB 40.8 million in 2021 to RMB 23.9 million in 2022[71] - Cost control measures will be implemented, including adjustments to management remuneration and streamlining administrative costs[95] Future Outlook - The market predicts that China's economy could achieve growth of about 5% in 2023, with a peak recovery expected in the second quarter[154] - Full-year gross film box office revenue in 2023 is expected to reach approximately RMB54.6 billion, recovering to 85% of the average box office level in 2019[162] - The box office in the PRC is expected to reach around RMB15.5 billion in Q1 2023, laying a solid foundation for the yearly box office recovery[162] Management and Governance - Mr. Chen Wei Dong served as a non-executive Director from April 1, 2015, until his resignation on January 9, 2023[183] - Mr. Wong Heung Ming Henry was appointed as an independent non-executive Director on November 8, 2010, and resigned on April 19, 2023[187] - Mr. Wong has over 29 years of experience in finance, accounting, internal controls, and corporate governance across Singapore, China, and Hong Kong[192]
十方控股(01831) - 2022 - 年度财报