Financial Performance - The company reported a revenue of RMB 304.96 million for the year ended December 31, 2021, a decrease of 33.0% compared to RMB 455.27 million in 2020[8]. - The gross loss for the year was RMB 49.79 million, compared to a gross profit of RMB 125.88 million in the previous year, representing a decline of 139.6%[8]. - The loss attributable to equity shareholders was RMB 75.12 million, a significant drop of 207.2% from a profit of RMB 70.08 million in 2020[8]. - The adjusted loss attributable to equity shareholders, excluding listing expenses, was also RMB 75.12 million, down 187.5% from RMB 85.84 million in 2020[8]. - The basic and diluted loss per share was RMB 0.25, compared to earnings of RMB 0.26 per share in the previous year, reflecting a decrease of 196.2%[8]. - Total revenue decreased by approximately 33.0% from RMB 455.3 million in 2020 to RMB 305.0 million in 2021, primarily due to a reduction of RMB 152.2 million in revenue from acquired drama rights[24]. - Revenue from self-produced drama rights decreased by approximately 71.4% from RMB 10.2 million in 2020 to RMB 2.9 million in 2021, with no self-produced dramas licensed for first-round broadcasting on satellite TV in 2021[25]. - Revenue from acquired drama rights was RMB 290.1 million in 2021, down from RMB 442.3 million in 2020[24]. - Other income decreased by approximately 78.9% from about RMB 10.7 million for the year ended December 31, 2020, to approximately RMB 2.3 million for the year ended December 31, 2021, mainly due to a reduction in government subsidies[43]. Costs and Expenses - Total sales costs increased by approximately 7.7% from RMB 329.4 million in 2020 to RMB 354.7 million in 2021, mainly due to increased costs in self-produced drama rights[32]. - Costs for self-produced drama rights increased by approximately 293.8% from RMB 16.8 million in 2020 to RMB 66.3 million in 2021[33]. - Costs for acquired drama rights decreased by approximately 10.0% from RMB 310.8 million in 2020 to RMB 279.6 million in 2021[34]. - Sales and marketing expenses increased by approximately 119.8% from about RMB 1.2 million for the year ended December 31, 2020, to approximately RMB 2.6 million for the year ended December 31, 2021[46]. - Administrative expenses increased by approximately 7.3% from about RMB 24.6 million for the year ended December 31, 2020, to approximately RMB 26.4 million for the year ended December 31, 2021[50]. Assets and Liabilities - As of December 31, 2021, the company's bank deposits and cash on hand were approximately RMB 856 million, down from approximately RMB 1,857 million as of December 31, 2020[61]. - The company's net current assets as of December 31, 2021, were approximately RMB 4,253 million, compared to approximately RMB 5,310 million as of December 31, 2020[61]. - The total amount of bank and other loans as of December 31, 2021, was approximately RMB 1,282 million, an increase from approximately RMB 792 million as of December 31, 2020[61]. - The current ratio decreased from approximately 1.9 times as of December 31, 2020, to approximately 1.8 times as of December 31, 2021[65]. - The debt-to-equity ratio increased from approximately 14.3% as of December 31, 2020, to approximately 26.8% as of December 31, 2021[68]. Corporate Governance - The company emphasizes the importance of independent directors in governance and strategic oversight[117]. - The board includes members with experience in various industries, enhancing the company's strategic decision-making capabilities[115]. - The company is committed to maintaining high standards of corporate governance through its independent board members[114]. - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors, with no changes in composition during the year[145]. - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring a balanced board structure[147]. - The company has established a nomination committee to review the board's structure and assess the independence of non-executive directors[169]. - The audit committee is responsible for overseeing financial reporting procedures and risk management systems[163]. - The remuneration committee's main responsibility is to propose overall compensation policies for all directors and senior management[164]. - The company has a policy to seek independent professional advice for directors when necessary, with costs borne by the company[158]. Future Plans and Strategies - The company aims to enhance its television production and distribution performance by expanding its self-produced drama licensing business and diversifying its drama offerings[13]. - The company plans to strengthen market research and insights into industry trends to increase its script and intellectual property reserves in response to enhanced copyright protection in China[13]. - The company plans to collaborate closely with third-party rights holders to acquire more diverse drama rights to meet customer preferences[21]. - The management remains confident in the future development of the business despite uncertainties caused by the COVID-19 pandemic[21]. - The company aims to continue implementing its business strategies as outlined in its prospectus[21]. Use of Proceeds - The net proceeds from the global offering in 2020 amounted to approximately HKD 152 million after deducting underwriting commissions and related expenses[78]. - The company has utilized approximately HKD 76.4 million, accounting for about 50.3% of the net proceeds from the global offering as of December 31, 2021[79]. - The planned use of net proceeds includes 50% for producing self-made TV dramas, with HKD 76.0 million allocated, of which HKD 38.6 million has been used[79]. - 37.5% of the proceeds, amounting to HKD 57.0 million, is designated for acquiring rights from third-party copyright holders, with HKD 31.5 million already utilized[79]. - The company plans to hire more experienced professionals and provide employee training, allocating 7.5% of the proceeds (HKD 11.4 million), with HKD 2.9 million already spent[79]. - 5% of the proceeds (HKD 7.6 million) is earmarked for working capital and general corporate purposes, with HKD 3.4 million already used[79]. - The total net proceeds amount to HKD 152.0 million, with HKD 75.6 million remaining unutilized as of December 31, 2021[79]. - The company expects to complete the planned uses of proceeds by December 2023[79]. Board Composition and Attendance - The board consists of 2 female directors and 7 male directors, demonstrating a balanced knowledge and skill set[172]. - The age range of the board members is between 39 and 58 years[172]. - The board will review the composition of the board annually to ensure diversity in skills, experience, and perspectives[172]. - The board has established three committees to oversee specific areas, including audit, remuneration, and nomination, to enhance operational efficiency[142]. - The board has the discretion to propose any dividends based on the company's financial performance and other relevant factors[181]. - The board's attendance record shows full participation in meetings, with all executive directors attending 100% of board meetings[153].
力天影业(09958) - 2021 - 年度财报