Financial Performance - The group's total revenue increased from approximately RMB 95,217,000 in the previous year to approximately RMB 97,941,000, representing a growth of about 2.9%[9] - The overall loss attributable to the company's owners decreased to approximately RMB 110,464,000, down by about RMB 36,502,000 or 24.8% compared to last year's loss of RMB 146,966,000[9] - Gross profit increased by approximately RMB 10,482,000 or 153.4%, rising from RMB 6,835,000 to RMB 17,317,000, with the gross profit margin improving from 7.2% to 17.9%[14] - The increase in revenue was primarily driven by the recovery of the prepaid card and film and entertainment investment businesses[14] - Other income decreased by approximately RMB 856,000 or 27.4% from last year's RMB 3,121,000 to this year's RMB 2,265,000, primarily due to a reduction in bank interest income[26] - Selling and distribution expenses decreased by approximately 22.2% from last year's RMB 6,057,000 to this year's RMB 4,715,000, attributed to effective cost control measures implemented during the year[28] - Administrative expenses increased by approximately 7.4% from last year's RMB 26,189,000 to this year's RMB 28,140,000, mainly due to increased public relations and corporate expenses[30] Business Segments - The flat media advertising segment recorded a loss of approximately RMB 1,000, significantly reduced from a loss of approximately RMB 463,000 in the previous year, mainly due to effective cost-cutting measures[16] - Outdoor and digital advertising revenue decreased by approximately RMB 4,250,000 or 6.7% from last year's RMB 63,559,000 to this year's RMB 59,309,000, primarily due to intense industry competition during the Double Eleven shopping festival[19] - Film and entertainment investment revenue increased by approximately RMB 4,716,000 or 40.0% from last year's RMB 11,785,000 to this year's RMB 16,501,000, reflecting a gradual recovery in the industry compared to the early stages of the COVID-19 pandemic[20] - The film and entertainment segment reported a loss of approximately RMB 100,247,000 this year, an increase of approximately RMB 8,609,000 or 9.4% compared to last year, mainly due to impairment of film and entertainment prepayments of approximately RMB 65,395,000[20] - Prepaid card business revenue increased by approximately RMB 3,107,000 or 16.3% from last year's RMB 19,024,000 to this year's RMB 22,131,000, driven by an increase in sales channels and customer numbers[25] Corporate Governance - The company has maintained high levels of corporate governance to meet shareholder expectations and comply with GEM listing rules[45] - The board of directors consists of a balanced mix of executive and independent non-executive directors, ensuring compliance with GEM listing rules regarding independent directors[49] - The company has adopted a code of conduct for securities trading by directors, confirming compliance by all directors during the year[46] - The company has implemented a board diversity policy, recognizing the benefits of a diverse board for improving performance[60] - The board diversity policy includes measurable objectives related to gender, ethnicity, age, and tenure, which are regularly reviewed[62] - The chairman and CEO roles are separated to ensure a balance of power and authority within the company[55] - The company will continue to review its corporate governance practices to enhance standards and meet regulatory requirements[45] Risk Management - The company maintains a robust internal control and risk management system, reviewed by the audit committee[72] - The board is responsible for establishing, maintaining, and reviewing the group's risk management and internal control systems[90] - The group has developed a risk management policy that outlines the identification, assessment, and management processes for major business risks[91] - An external consultant was hired to conduct an annual review of the group's risk management and internal control systems, with no significant concerns identified[92] - Each department is responsible for identifying and assessing major risks quarterly and developing plans to manage identified risks[93] Environmental and Social Responsibility - The total greenhouse gas emissions for the group in 2021 were 6.5 tons of CO2 equivalent, a decrease of 61% from 16.6 tons in 2020, resulting in a reduction in emissions density from 0.46 tons to 0.17 tons per employee[112] - The total energy consumption for the group in 2021 was 17.7 MWh, down 46% from 32.6 MWh in 2020, with energy consumption density decreasing from 0.91 MWh to 0.45 MWh per employee[121] - The group has implemented various environmental measures, including the installation of LED lights, to enhance energy efficiency and reduce greenhouse gas emissions[121] - The group emphasizes corporate social responsibility and sustainable development, actively engaging with stakeholders to enhance operational transparency[106] - The group has adopted a waste reduction philosophy, promoting recycling and efficient resource use in daily operations[117] - The company is committed to improving waste management mechanisms despite its minimal direct environmental impact[127] Employee and Workplace Practices - The company employed a total of 39 employees as of December 31, 2021, down from 52 employees in 2020, with total employee costs of approximately RMB 11,105,000[42] - The employee count at the end of the reporting period was 39, a decrease from 52 in 2020, with 37 being full-time employees[133] - 51% of employees are female and 49% are male, with 41% located in China and 13% in Hong Kong[134] - The company provided training to 20 employees in Hong Kong, representing 51% of the workforce, with an average training duration of approximately 1.35 hours for females and 1.58 hours for males[140] - There were no reported fatalities or serious workplace accidents in the past three years, maintaining a fatality rate of 0%[139] - The company encourages a family-friendly work environment, providing various leave benefits and establishing breastfeeding rooms for employees[135] Shareholder Communication - Multiple communication channels have been established for shareholders and investors, including annual meetings and reports[95] - The group has established communication channels with stakeholders, including annual reports and shareholder meetings, to address their concerns and interests[107] - The company has a dividend policy in place since January 1, 2019, to establish appropriate dividend and recommendation procedures[102] - The board will consider the declaration of dividends based on the company's actual and expected financial performance, cash flow, and overall business conditions[103] - The group will regularly review and reassess its dividend policy and its effectiveness[104] Supplier and Customer Relations - The company has a total of 26 suppliers, primarily from China, reflecting its focus on the Chinese market[145] - The group reported that sales to the top five customers accounted for approximately 60.2% of total sales for the year, up from 50.6% in 2020, with the largest customer contributing about 29.0% of total sales, compared to 17.3% in 2020[189] - The group’s major suppliers accounted for approximately 45.1% of total sales costs, an increase from 30.8% in 2020, with the largest supplier contributing about 14.9% of total sales costs, compared to 9.1% in 2020[189] - The company received five complaints regarding products and services during the reporting period, which were addressed by the customer service department[149]
中国三三传媒(08087) - 2021 - 年度财报