DDMC(SH:600136)2023-06-26 16:00Financial Performance - The company's operating revenue for 2022 was ¥759,567,760.14, a decrease of 47.80% compared to ¥1,455,140,178.88 in 2021[27]. - The net profit attributable to shareholders for 2022 was -¥5,068,200,280.25, compared to -¥1,071,327,568.59 in 2021, indicating a significant loss[27]. - The net cash flow from operating activities for 2022 was ¥78,414,576.17, down 39.91% from ¥130,489,306.55 in 2021[27]. - The total assets at the end of 2022 were ¥3,412,292,968.57, a decrease of 51.07% from ¥6,973,593,200.34 at the end of 2021[27]. - The net assets attributable to shareholders at the end of 2022 were -¥4,623,538,192.95, a decline of 923.15% from ¥561,690,276.70 at the end of 2021[27]. - The basic earnings per share for 2022 was -¥8.67, compared to -¥1.83 in 2021[28]. - The diluted earnings per share for 2022 was also -¥8.67, reflecting a worsening financial position[28]. - The company reported a quarterly operating revenue of -¥106,241,236.43 in Q4 2022, following revenues of ¥323,828,216.05 in Q1, ¥384,470,006.11 in Q2, and ¥157,510,774.41 in Q3[30]. - The net profit attributable to shareholders in Q4 2022 was -¥4,407,723,517.24, significantly impacting the annual results[30]. 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 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 disclosed potential risks in its management discussion and analysis section, urging investors to review these risks[11]. - The company has not ensured the accuracy and completeness of its annual report due to the presence of significant uncertainties[4]. - The company has faced legal challenges 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 is actively pursuing new media partnerships across various regions, including Southeast Europe and Central Asia, for AFC event broadcasting rights[44]. - The company has faced continuous losses for three consecutive years, with current assets less than current liabilities, indicating significant operational uncertainty[102]. - The company is under pressure from overdue loans and bonds, which could lead to increased financial costs and potential litigation risks if not managed properly[97]. Operational Challenges - The company has not provided any forward-looking commitments in its future plans or development strategies[10]. - The company has not engaged in any related party transactions that require board or shareholder meeting approval[110]. - The company has not reported any significant changes in business, products, or services during the reporting period[62]. - The overall business environment remains challenging due to macroeconomic factors and a tightening cash flow situation[55]. - The company has lost several sports business opportunities due to macroeconomic factors and heavy debt burdens[52]. - The company is currently undergoing a pre-restructuring process, with uncertainty regarding its success and potential implications for future operations[103]. - The company is facing delisting risk due to negative net assets and a non-standard audit report, as per the Shanghai Stock Exchange listing rules[161]. - The company is in a pre-restructuring phase and is cooperating with the temporary administrator to return to a healthy and sustainable development track[162]. Management and Governance - The company has undergone several leadership changes, including the resignation of General Manager Yan Aihua on April 22, 2022[118]. - The company appointed Zhou Xu as the new Chief Financial Officer on July 8, 2022, following the resignation of Li Zhenyu[118]. - The company has appointed new directors and management personnel, with the current term for the new chairman starting from March 8, 2023[114]. - The company has been actively involved in corporate governance, ensuring compliance and transparency in its operations[119]. - The company has established internal control systems but identified significant deficiencies, including unapproved guarantees and delayed disclosures[144]. - The company aims to enhance its internal governance and operational quality to prevent future violations[110]. - The company has implemented measures to attract and retain core personnel, but risks remain regarding potential talent loss impacting future operations[99]. - The company has a competitive salary policy to attract and retain talent, with a focus on fairness and performance-based adjustments[137]. Revenue and Segment Performance - In 2022, the company's film and television segment achieved revenue of 162.16 million RMB, an increase of 7.47% year-on-year[35]. - The sports segment reported revenue of 597.41 million RMB in 2022, a decrease of 54.20% year-on-year due to cash flow shortages and loss of domestic broadcasting rights[35]. - The company recorded inventory impairment of 576.40 million RMB and accounts receivable credit impairment loss of 273.28 million RMB in 2022[36]. - The company maintained a high debt ratio with financial expenses amounting to 298.66 million RMB, including interest expenses of 512.06 million RMB[36]. - The company experienced a significant increase in investment income, reporting ¥23,479,703.93 compared to a loss of ¥585,795.13 in the previous year[55]. Shareholder and Equity Information - The total number of shares decreased from 584,618,623 to 583,093,123 due to the cancellation of 1,525,500 repurchased shares[180]. - The largest shareholder, Wuhan Contemporary Science and Technology Industry Group Co., Ltd., holds 78,705,094 shares, accounting for 13.50% of the total[186]. - The top ten shareholders hold a total of 309,000,000 shares, representing approximately 52.9% of the total shares[186]. - The company’s shareholding structure remains stable with no significant changes in asset and liability structure during the reporting period[182]. - The company has not engaged in any entrusted financial management or loans during the reporting period[175]. Future Outlook and Strategy - The company aims to enhance its production capabilities and expand its market presence through digital transformation and international cooperation[81]. - The company plans to accelerate the collection of accounts receivable and inventory clearance to revitalize existing assets[91]. - The company is exploring expansion opportunities in the sports marketing sector despite recent setbacks in its sports business[43]. - The company anticipates a more regulated and rational development in the television industry, focusing on quality and innovation as key growth drivers[80]. - The company plans to reduce unnecessary capital expenditures to maximize profits amid tight liquidity[162].