CIH(SH:600715)2023-04-28 16:00Financial Performance - The company's operating revenue for 2022 was approximately CNY 799.73 million, representing a 3.05% increase compared to CNY 776.09 million in 2021[19] - The net profit attributable to shareholders for 2022 was a loss of approximately CNY 1.27 billion, worsening from a loss of CNY 718.01 million in 2021[19] - The total assets decreased by 30.43% to approximately CNY 5.02 billion at the end of 2022, down from CNY 7.22 billion at the end of 2021[20] - The net asset attributable to shareholders decreased by 60.97% to approximately CNY 834.89 million at the end of 2022, compared to CNY 2.14 billion at the end of 2021[20] - The basic earnings per share for 2022 was -CNY 0.69, compared to -CNY 0.39 in 2021[21] - The weighted average return on equity for 2022 was -84.67%, significantly lower than -27.81% in 2021[21] - The company reported a total loss of 1.273 billion RMB for the reporting period due to various factors including asset impairment losses and bad debt provisions[22] - The company reported a cash flow from operating activities of approximately CNY 74.11 million, a decrease of 42.46% from CNY 128.81 million in 2021[20] Operational Challenges - The company faced significant operational losses and asset impairment losses due to external factors impacting the film industry[21] - The company has indicated that the film and cinema business has been severely affected, leading to increased financing costs and high financial expenses[21] - The company closed 26 underperforming cinemas to reduce losses, leaving a total of 46 cinemas in operation with 351 screens as of December 31, 2022[33] - The company incurred a goodwill impairment loss of 356 million RMB and a bad debt loss of 292 million RMB due to external factors affecting customer payment capabilities[22] - The cinema film screening and related derivative business reported revenue of ¥254,033,738.47, with a gross margin of -84.23%, a decrease in revenue of 45.45% compared to the previous year[75] Revenue Streams - The company’s game business showed signs of recovery with the mobile game "Attack City" entering a stable phase during the reporting period[22] - The film business generated a total box office of 236 million RMB, accounting for 0.79% of the national total box office, ranking 16th in the industry[33] - The company achieved a total revenue of 86.93 million CNY from the sales of 58 licensed Winter Olympic products, with a profit of 17.29 million CNY after a cost of 69.64 million CNY[42] - The online gaming business achieved revenue of ¥191,655,016.51, a 50.63% increase, with a gross margin of 86.41%, marking a 38.83 percentage point increase compared to the previous year[75] - The "Cultural +" business segment saw revenue of ¥160,086,662.61, a 123.35% increase, but a decrease in gross margin by 24.26 percentage points to 19.98%[75] Market Trends - The total box office for the Chinese film market in 2022 was 30.07 billion CNY, a decline of approximately 36.4% compared to 2021, with domestic films accounting for 84.85% of the total box office[44][46] - The number of new films released in 2022 was 325, a decrease of 222 films from the previous year, with only 39 films surpassing 100 million CNY at the box office[47] - The actual sales revenue of China's gaming market was 265.88 billion yuan, a decrease of 30.63 billion yuan or 10.33% compared to 2021[49] - The gaming industry is facing multiple challenges, including a decline in sales revenue and user scale as the "stay-at-home" economy benefits fade[114] Strategic Initiatives - The company has established a dual middle platform for business and finance in collaboration with Alibaba Cloud, enhancing operational efficiency[34] - The company is committed to diversifying its revenue channels through horizontal and vertical investments and acquisitions in the cultural sector, enhancing its overall competitiveness[58] - The company plans to enhance its cinema management by optimizing layouts and increasing non-ticket revenue, while ensuring safety and risk management[119] - The company aims to strengthen its role as a content production platform, focusing on high-quality development and creating premium cultural projects that reflect the spirit of the times[117] Governance and Management - The company has established a performance evaluation and incentive mechanism linking managerial compensation to company performance and individual achievements[144] - The independent directors actively fulfilled their duties, providing independent opinions on major matters to enhance the scientific and objective nature of board decisions[142] - The company has implemented strict information disclosure practices, ensuring timely and accurate information is available to all shareholders and stakeholders[143] - The company has established a transparent process for the nomination and election of independent directors, ensuring compliance with legal requirements[144] Future Outlook - The company plans to focus on major and realistic themes in film production to enhance brand differentiation and industry influence, anticipating a recovery in the film industry with new releases stimulating market activity[113] - The company is committed to integrating culture with technology, tourism, and sports to enhance operational performance and core competitiveness[118] - The company plans to expand its overseas market presence by integrating self-developed products with global distribution and traffic operations, targeting high-potential markets in Europe and America[130] - The company aims to enhance player satisfaction, activity, and retention rates through diversified exploration in game types, themes, and gameplay, focusing on high-quality content as a strategic direction[130]