Financial Performance - The company recorded revenue of RMB 249.7 million for the fiscal year ending December 31, 2021, a decrease of 20.0% compared to RMB 312.0 million for the fiscal year ending December 31, 2020[7]. - The company incurred a loss of RMB 102.8 million in the fiscal year 2021, compared to a loss of RMB 69.1 million in the fiscal year 2020[13]. - The decline in revenue was primarily due to television stations slowing down program upgrades influenced by internet video media[17]. - The company does not recommend the payment of dividends for the fiscal year 2021, consistent with no dividends in 2020[14]. - Sales cost decreased by 21.0% from RMB 258.2 million in 2020 to RMB 204.0 million in 2021 due to reduced revenue[18]. - Gross profit fell by 15.2% from RMB 53.8 million in 2020 to RMB 45.6 million in 2021, while gross margin increased from 17.2% to 18.3%[19]. - Other income decreased by 50.8% from RMB 62.0 million in 2020 to RMB 30.5 million in 2021, primarily due to a decline in software tax rebates and government subsidies[20]. - The company recorded a loss before tax of RMB 102.8 million in 2021, compared to a loss of RMB 61.6 million in 2020[26]. Business Strategy and Development - The company plans to continue developing and investing in innovative products and services to enhance its core digital video technology[8]. - The company aims to optimize and improve existing product performance while reducing costs[8]. - The company is exploring potential business opportunities to expand revenue sources and enhance shareholder value[8]. - The company may consider asset sales, acquisitions, business rationalization, and diversification to enhance long-term growth potential[15]. - The company is committed to reviewing its business activities to formulate future development plans and strategies[15]. - The company aims to become a leading integrated digital video technology, services, and media company in China, focusing on expanding its customer base and market share[46]. - The company plans to enhance its service business to create recurring high-profit revenue streams, transitioning its CreaStudio service to co-produce entertainment media content with media rights holders[49]. - The company intends to continue developing and investing in innovative products and services, particularly by strengthening partnerships with telecom operators like China Mobile and China Unicom[50]. - The company is looking for strategic investment and acquisition opportunities to enhance its solutions, services, and product offerings, particularly in advanced digital video technology and smaller domestic competitors with niche customer bases[52]. Human Resources and Employment - As of December 31, 2021, the company employed 530 full-time employees and 40 temporary workers, a decrease from 619 full-time employees and 36 temporary workers in 2020[44]. - Total employee compensation expenses for 2021 were approximately RMB 923 million, down from RMB 1,036 million in 2020[44]. - The total number of employees is 564, with 409 males and 155 females[129]. - Employee turnover rate is 75% for males and 25% for females, with 49% for those under 30 years old[130]. - The company emphasizes the importance of employee training and development for long-term success[131]. - The company has not encountered any significant legal or regulatory non-compliance issues regarding employment and labor practices during the reporting period[124]. - The company is committed to providing a safe and healthy work environment, adhering to relevant occupational health and safety laws[126]. - The company has established high standards for health and safety across all work locations[126]. - The company promotes equal employment opportunities and does not tolerate discrimination or harassment[128]. - The company has implemented measures to ensure a harmonious and fair working environment for all employees[128]. Corporate Governance - The management team includes experienced professionals with backgrounds in technology and finance, enhancing the company's strategic direction[66]. - The company has confirmed that none of the directors have held any positions in other listed companies in the past three years, ensuring focused governance[67]. - The management team includes a Chief Technology Officer who has been with the company since 2008, indicating stability in technical leadership[72]. - The company has a strong emphasis on audit and financial management, with independent directors holding key positions in audit committees[66]. - The company has maintained a consistent leadership structure with experienced executives, which may contribute to its operational effectiveness[68]. - The company has adopted a board diversity policy to enhance performance quality, considering various measurable aspects such as gender, age, and professional experience[82]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and adequate oversight for shareholder interests[90]. - The company has confirmed the independence of all independent non-executive directors according to GEM Listing Rules, ensuring compliance with governance standards[92]. - The chairman and CEO roles are currently held by the same individual, which the board believes enhances operational efficiency despite deviating from governance code recommendations[90]. - The company has established measurable targets for board diversity and reviews its composition annually to ensure effectiveness[85]. - The board has been satisfied with the effectiveness of its corporate governance policies and practices[79]. - The company has received annual confirmations of independence from its independent non-executive directors, reinforcing its governance framework[92]. - The board of directors has established three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, to oversee specific areas of the company's affairs[98]. - The Remuneration Committee reviewed the remuneration of directors and senior management during the fiscal year 2021 and deemed it fair and reasonable[99]. - The Nomination Committee evaluated the composition and independence of the board and reviewed the policies and procedures for the nomination and appointment of new directors during the fiscal year 2021[100]. - The Audit Committee reviewed the consolidated financial statements for the fiscal year 2021 and confirmed that they were prepared in accordance with applicable standards and regulations[103]. - The company held six board meetings in 2021 to discuss operational performance, while the Audit, Remuneration, and Nomination Committees held four, one, and one meetings respectively[104]. - The company has implemented appropriate insurance arrangements for directors and senior management against legal claims arising from their duties[96]. - All directors participated in training programs organized by the company during the fiscal year 2021 to enhance their knowledge and skills[97]. - The company encourages continuous professional development for all directors to better serve the company[97]. - The Audit Committee ensures that employees can confidentially report any concerns regarding financial reporting or internal controls[103]. - The company adheres to the GEM Listing Rules regarding the composition and responsibilities of the Audit Committee, ensuring at least one member has appropriate professional qualifications[103]. - The board is responsible for the overall effectiveness of the risk management and internal control systems[112]. - The company emphasizes the importance of integrity and respect in employee conduct, with specific operational procedures outlined in departmental manuals[113]. - The remuneration policy for directors and senior management is based on their experience, industry knowledge, and the company's performance[106]. - The company aims to ensure shareholders and potential investors receive timely and unbiased information[117]. Environmental and Social Responsibility - The company aims to integrate sustainable development policies and strategies into all aspects of its business[121]. - The group generated carbon emissions of 8.44 tons from vehicle usage during the reporting period[136]. - The total electricity consumption of the group was 584,053 kWh during the reporting period[139]. - The group produced minimal non-hazardous waste, primarily household waste and waste paper, with no significant hazardous waste generated during the reporting period[137]. - The group has implemented energy-saving measures, including maintaining indoor temperatures between 25 to 26 degrees Celsius[138]. - The group has established a whistleblowing system for employees to report misconduct or suspicious transactions confidentially[134]. - The group strictly adheres to anti-corruption policies, with no corruption lawsuits filed against the group or its employees during the reporting period[133]. - The group has not encountered any issues regarding water source acquisition during the reporting period[141]. - The group has taken measures to ensure compliance with environmental protection laws, with no incidents of non-compliance reported during the year[135]. - The group respects and protects intellectual property rights, actively taking measures to safeguard its trademarks and other intellectual property[146]. - The group has developed policies to manage and protect customer data, ensuring the integrity and security of personal information[147]. - The company emphasizes the importance of managing environmental and social risks in its supply chain[148]. Shareholder Information - Major shareholders include Mr. Zheng Fushuang with 214,278,278 shares, representing approximately 33.99% of the company's equity[171]. - Eagle Eyes Investment Limited and its affiliates hold 98,098,000 shares, accounting for about 15.56% of the company's equity[171]. - The company has adopted a dividend policy that considers operational performance, cash flow, and financial conditions before declaring dividends[158]. - The company's distributable reserves as of December 31, 2021, amount to RMB 237,699,000, down from RMB 296,689,000 in 2020[162]. - The largest supplier accounts for 16.9% of the total purchases, while the top five suppliers together account for 50.8%[165]. - The largest customer contributes 10.0% of total sales, with the top five customers accounting for 31.3%[165]. - The company maintains sufficient public float as per GEM listing rules[155]. - The company has not purchased, sold, or redeemed any of its listed securities during the year[160]. - The company has not entered into any significant management contracts during the reporting period[163]. - The company has not made any charitable or other donations during the year ended December 31, 2021[191]. - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year 2021[200]. - There are no specific plans for significant investments or capital assets as of December 31, 2021[199]. - The company has complied with all code provisions throughout 2021, with the exception of the chairman and CEO roles being held by the same individual, which the board believes enhances operational efficiency[197].
中国数字视频(08280) - 2022 - 年度财报