CIH(SH:600715)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was ¥776,093,582.01, representing a 46.99% increase compared to ¥527,986,746.42 in 2020[19] - The net profit attributable to shareholders of the listed company was -¥718,013,713.74, an improvement from -¥3,462,649,263.23 in 2020[19] - The net cash flow from operating activities was ¥128,806,499.35, a decrease of 28.73% from ¥180,739,060.96 in 2020[20] - The total assets at the end of 2021 were ¥7,218,958,535.00, a slight decrease of 0.34% from ¥7,243,344,394.45 at the end of 2020[20] - The company's net assets attributable to shareholders decreased by 24.89% to ¥2,139,162,938.44 from ¥2,848,178,743.29 in 2020[20] - The basic earnings per share for 2021 was -¥0.39, an improvement from -¥1.87 in 2020[21] - The weighted average return on equity was -27.81% for 2021, compared to -74.16% in 2020[21] - The company did not distribute profits or increase capital reserves in 2021, as approved by the board[5] Market and Industry Overview - In 2021, the total box office in China reached 47.258 billion yuan, an increase of 131% compared to 2020, maintaining the position as the world's largest film market[43] - The number of new films released in 2021 was 554, representing an increase of 81.6% from 2020[44] - Domestic films accounted for 39.927 billion yuan of the total box office, making up 84.49% of the market share[44] - The average ticket price in China rose to 40.3 yuan in 2021, an increase of 8.9% year-on-year[46] - The number of cinemas in operation reached 12,400, a year-on-year growth of 2.7%[45] - The total revenue of the Chinese gaming market in 2021 was 296.513 billion yuan, a year-on-year increase of 6.4%[49] - The mobile gaming market generated 225.538 billion yuan in revenue, accounting for 76.06% of the total gaming market[49] - The user base for mobile games reached 666 million, showing a slight growth of 0.22% year-on-year[49] Company Operations and Strategy - The company operated 73 cinemas with a total of 533 screens as of the end of 2021, having closed one underperforming cinema[31] - The company implemented significant cost control measures, including negotiating rent reductions and managing labor and procurement costs to mitigate losses caused by the pandemic[31] - A dual platform for business and financial management was launched in collaboration with Alibaba Cloud, integrating data across membership, stores, and headquarters[31] - The company completed the transition of 22 cinemas to its film investment and distribution operations during the reporting period[31] - The company adjusted its film project evaluation system to ensure prudent investment decisions in response to market changes[31] - The company is actively expanding its market presence, planning to enter overseas markets including Taiwan, Japan, South Korea, and Vietnam in 2022[38] - The company is focusing on developing key projects related to the Winter Olympics, enhancing its capabilities in major thematic productions[35] Risks and Challenges - The company faced significant losses in the past two years due to the severe impact of the pandemic on its cinema and film business[21] - The company has outlined potential risks in its future development discussions, emphasizing the need for investor caution[10] - The gaming industry is experiencing increased regulatory scrutiny, which may impact the company's operations if not addressed promptly[130] - The company is under pressure from intensified market competition, particularly in the gaming sector, which demands higher quality products[130] - Changes in audience preferences pose a risk to the company's film projects, as viewer demands are influenced by various social factors[129] Governance and Management - The board of directors consists of 9 members, including 3 independent directors, meeting legal requirements with independent directors making up 1/3 of the total[134] - The company held 4 shareholder meetings during the reporting period, approving a total of 22 proposals, including the annual financial report and the appointment of new directors and supervisors[141] - The company established a performance evaluation and incentive mechanism linking managerial compensation to company performance and individual achievements[137] - The supervisory board is composed of 5 members, including 2 employee supervisors, complying with legal requirements[135] - The company ensures independent operations between the controlling shareholder and the listed company, maintaining autonomy in business, personnel, assets, and finance[137] Future Outlook - The company anticipates the film market to stabilize around the levels of 2016 to 2017, with potential for box office revenue to exceed RMB 60 billion if the pandemic situation improves[110] - The company plans to implement a classification management system for cinemas, focusing on loss reduction for unprofitable locations and revenue expansion for growing cinemas[115] - The company aims to increase non-ticket revenue by adjusting product offerings and exploring innovative cross-industry collaborations, such as cinema bookstores and VR exhibitions[115] - The company plans to launch 2 new game products in 2022 to ensure steady and sustainable development[125] - The company is committed to producing high-quality television series and web dramas, focusing on themes that reflect the new era and national values[120] Social Responsibility and Community Engagement - The company is actively working on its social responsibility initiatives, as detailed in its annual social responsibility report[180] - The company has focused on enhancing organizational capabilities and fostering a learning culture among employees[174]