DDMC(SH:600136)2023-04-26 16:00Financial Performance - In 2022, the company's operating revenue was CNY 656,416,758.49, a decrease of 57.75% compared to CNY 1,553,560,345.77 in 2021[27]. - The net profit attributable to shareholders was a loss of CNY 5,166,484,968.73, compared to a loss of CNY 977,773,714.87 in the previous year[27]. - The net cash flow from operating activities was CNY 78,414,576.17, down 39.91% from CNY 130,489,306.55 in 2021[27]. - The total assets decreased by 51.71% to CNY 3,412,292,968.57 from CNY 7,066,053,150.63 in 2021[27]. - The net assets attributable to shareholders were CNY -4,623,538,192.95 at the end of 2022, a decline of 806.80% from CNY 654,150,226.99 in 2021[27]. - The basic earnings per share for 2022 was CNY -8.84, compared to CNY -1.67 in 2021[28]. - The company reported a significant quarterly loss in Q4 2022, with a net profit attributable to shareholders of CNY -4,597,435,206.32[31]. - The company experienced a decline in revenue across all four quarters, with Q1 revenue at CNY 387,057,800.13 and Q4 revenue at CNY -305,791,526.36[31]. - The weighted average return on equity was not applicable for 2022, compared to -93.24% in 2021[28]. Legal and Compliance Issues - The company has identified three instances of non-compliance regarding guarantees, but cannot confirm the existence of other similar issues[6]. - The company is currently involved in multiple lawsuits related to equity repurchase obligations, with the final amounts subject to court rulings[6]. - The company received an audit report with a disclaimer of opinion from the auditing firm, indicating unresolved issues regarding financial reporting[8]. - The company has not confirmed the accuracy of revenue recognition related to the LaLiga media rights due to uncertainties surrounding the licensing agreement[5]. - The company has faced legal issues due to unpaid fees related to La Liga and AFC, resulting in the termination of agreements and potential loss of sports-related business[43]. - The company has faced disciplinary action from the Shanghai Stock Exchange for multiple violations, including undisclosed guarantees and incomplete information disclosure[125]. - Several key personnel, including the chairman and financial director, received public reprimands due to the company's regulatory violations[125]. - The company has identified 3 instances of illegal guarantees totaling 325 million yuan, which have led to lawsuits for payment[134]. - The company has faced legal actions regarding multiple equity repurchase obligations without proper internal approval[134]. Operational Challenges - The company has not provided any forward-looking commitments regarding future plans or strategies, highlighting investment risks[10]. - The company has not ensured the accuracy of past financial transactions due to the lack of clarity in certain agreements[6]. - The company has lost multiple sports business opportunities due to macroeconomic factors and heavy debt burdens[52]. - The company continues to face legal challenges related to debt, impacting its operational capabilities[52]. - The company is under pressure from high overdue loans and bond principal amounts, which may lead to increased financial costs and potential litigation risks[96]. - The company has a high proportion of goodwill relative to total assets and net assets, which poses a risk of impairment if subsidiaries fail to maintain competitive capabilities[100]. - The company is exposed to foreign exchange settlement risks due to significant overseas operations, which may adversely affect financial results[97]. - The company has implemented measures to attract and retain core personnel, but risks remain regarding potential talent loss impacting future operations[98]. - The company faces inventory increase risks in both its film and sports segments due to production and market competition challenges[95]. Revenue and Segment Performance - In 2022, the company's film and television segment generated revenue of 162.16 million, an increase of 7.47% compared to the previous year[35]. - The sports segment's revenue for 2022 was 494.26 million, a decrease of 64.76% year-over-year due to loss of domestic broadcasting rights for major events[35]. - The company recognized inventory impairment of 576.40 million in 2022 due to declining inventory turnover capability[36]. - The company reported credit impairment losses on receivables amounting to 268.42 million for the year[36]. - Goodwill impairment for the subsidiary Borg B.V. was recorded at 76.73 million in 2022[36]. Governance and Management Changes - The company has established a transparent governance structure, but issues related to timely disclosure of related party transactions and litigation have been identified[106]. - The company identified multiple instances of non-compliance with board and shareholder meeting decision-making procedures, as well as delayed information disclosure regarding litigation and arbitration matters[109]. - The company held its first extraordinary shareholders' meeting on January 28, 2022, where it approved the change of the 2021 annual audit institution and internal control audit institution[109]. - The 2021 annual shareholders' meeting, held on June 20, 2022, approved the board and supervisory committee work reports, financial settlement report, profit distribution plan, and internal control evaluation report[109]. - The second extraordinary shareholders' meeting took place on October 17, 2022, where proposals for expected daily related party transactions and the cancellation of part of the repurchased shares were approved[109]. - The company plans to strengthen internal governance and operational quality to prevent future compliance issues[109]. - The company has undergone significant changes in its board and management, with multiple resignations and appointments due to personal reasons and re-elections[123]. - The company appointed Zhou Xu as the new Chief Financial Officer on July 8, 2022, following the resignation of Li Zhenyu[118]. - The board of directors underwent significant changes, with Zhou Dong elected as the new chairman on June 20, 2022[118]. Future Outlook and Strategic Initiatives - The company announced a strategic focus on market expansion and new product development in the upcoming fiscal year[119]. - The company plans to enhance its research and development efforts, particularly in technology innovation, to drive future growth[119]. - Future earnings guidance indicates a projected growth rate of approximately 10% year-over-year, reflecting confidence in market conditions[119]. - The company is currently in a pre-restructuring phase and is focusing on orderly business development to create market value[90]. - The company plans to reduce unnecessary capital expenditures to maximize profits amid tight liquidity[163]. - The company is accelerating the collection of accounts receivable and clearing inventory to revitalize existing assets[163]. Shareholder and Equity Information - The total number of shares decreased by 1,525,500 shares, resulting in a total of 583,093,123 shares outstanding[181]. - The number of ordinary shareholders increased from 21,499 to 23,501 during the reporting period[184]. - The largest shareholder, Wuhan Contemporary Science and Technology Industry Group Co., Ltd., holds 78,705,094 shares, representing 13.50% of total shares[187]. - The company’s total assets and liabilities structure remained unchanged during the reporting period[183]. - The company’s shareholding structure shows that 83.24% of shares are freely tradable[181]. - The company canceled 1,525,500 shares of repurchased stock on December 5, 2022, reducing total share capital from 584,618,623 shares to 583,093,123 shares[200]. - The repurchase plan was disclosed on February 13, 2019, with a proposed repurchase amount between RMB 0.8 billion and RMB 1.6 billion[200].