DDMC(SH:600136)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥804,697,510.44, a decrease of 1.20% compared to the same period last year [23]. - The net profit attributable to shareholders was -¥362,232,719.43, showing a significant loss compared to -¥198,221,275.05 in the previous year [23]. - The net cash flow from operating activities decreased by 91.97%, amounting to ¥24,663,549.71 [23]. - The total assets at the end of the reporting period were ¥7,194,271,274.63, reflecting a 1.81% increase from the previous year [23]. - The net assets attributable to shareholders decreased by 35.18%, totaling ¥424,043,397.32 [23]. - The basic earnings per share for the first half of 2022 was -¥0.62, compared to -¥0.34 in the same period last year [24]. - The weighted average return on net assets was -76.58%, a decrease of 66.73 percentage points from the previous year [24]. - The company reported a total comprehensive loss of RMB 302.73 million for the first half of 2022, compared to a loss of RMB 309.44 million in the same period last year [144]. - The company reported a significant decrease in cash received from sales, which fell by 60.12% to CNY 290.33 million [54]. - The company’s total comprehensive income for the current period shows a decrease of RMB 135,777,002.12 [162]. Governance and Compliance - The company guarantees the authenticity, accuracy, and completeness of the financial report, with individual and joint legal responsibilities [4]. - The report has not been audited, and the financial report is declared to be true, accurate, and complete by the responsible persons [8]. - The company has not faced any situation where more than half of the directors cannot guarantee the authenticity of the report [9]. - The company has not disclosed any significant matters that require further attention in the report [10]. - The company confirmed that it will maintain its independence and avoid competition with its controlling shareholder, Guochuang Capital, as per commitments made [92]. - The company is undergoing a major asset restructuring to ensure its independence and compliance with regulatory requirements [93]. - The company has established specific accounting policies and estimates based on its operational characteristics, particularly regarding revenue recognition [173]. Risks and Challenges - The company has detailed potential risks in the report, which investors should review [9]. - The company is subject to a risk statement regarding forward-looking statements, indicating that future plans do not constitute a substantive commitment to investors [7]. - The company faces risks from potential adverse changes in operating policies and intensified market competition, particularly in the film and sports industries [67][68]. - The company faces risks related to the sales of film and television works, as the consumption of cultural products is largely one-time and requires continuous creation and distribution of new works [69]. - The company's inventory risk is significant due to the nature of its business, with inventory only being recognized after obtaining necessary licenses, leading to potential increases in inventory if sales are not timely [70]. - The company is exposed to foreign exchange risks due to its subsidiaries operating in multiple currencies, which could adversely affect its financial condition and operating results [73]. - The ongoing impact of the COVID-19 pandemic may lead to the cancellation or postponement of major international sports events, affecting media rights and sponsorship sales [78]. - The company faces significant legal challenges, including a potential loss of control over assets due to a lawsuit involving a 16% equity pledge [52]. Shareholder Structure and Financing - The company has a total of 22,668 ordinary shareholders as of the end of the reporting period [110]. - The top ten shareholders include Wuhan Contemporary Technology Industry Group Co., Ltd. with 78,705,094 shares (13.46%) and Wuhan New Star Hanyi Chemical Co., Ltd. with 70,041,630 shares (11.98%) [113]. - The total voting rights controlled by the shareholders who delegated their voting rights to Guochuang Capital amount to 160,108,073 shares (27.39% of total share capital) [114]. - The company reported a non-operating fund occupation by related parties amounting to CNY 26,000,000, which accounts for 39.75% of the latest audited net assets [94]. - The company is actively seeking financial support from major shareholders to reduce the asset-liability ratio and alleviate cash flow shortages [98]. - The company plans to address liquidity issues through asset disposal, collection of receivables, and seeking support from financial institutions and the government [126]. Operational Developments - The company aims to enhance its film and television production by focusing on high-quality content and data analysis to mitigate investment risks [34]. - The company holds exclusive global rights and commercial interests for AFC events from 2021 to 2028, facilitating multiple copyright operations and sports marketing initiatives [36]. - The company has authorized various media partners across different regions, including MNC in Indonesia and CJ ENM in South Korea, for broadcasting AFC events from 2021 to 2024 [37]. - The company is currently engaged in ongoing media partnerships for AFC events in multiple countries, including Vietnam, Mongolia, and Myanmar [37]. - The company has secured media partnerships for AFC events in multiple regions, including CBS Sports in the US and StarTimes in Africa, covering the period from 2021 to 2024 [21]. Financial Management - The company is focusing on reducing unnecessary capital investments in non-core businesses to maximize profits amid tight liquidity [98]. - The company has reported a significant amount of guarantees provided to related parties without proper internal approval processes [96]. - The company’s financial expenses decreased by 3.03% year-on-year to CNY 237.76 million, reflecting efforts to manage costs [54]. - The company’s loan repayment rate dropped by 90.22 percentage points to 9.78% [133]. - The company is actively seeking to negotiate with bondholders for potential deferment of principal and interest payments [126]. Future Outlook - The sports industry is expected to become a pillar of the national economy by 2035, with an increasing share of GDP [33]. - Despite short-term impacts from the pandemic, the long-term outlook for the sports industry remains positive, indicating an overall upward trend [33]. - The company plans to focus on improving profitability and managing costs in the upcoming quarters to enhance shareholder value [161].