CIH(SH:600715)2023-07-07 16:00Financial Performance - The company's operating revenue for 2022 was CNY 799.73 million, representing a 3.05% increase compared to CNY 776.09 million in 2021[21]. - The net profit attributable to shareholders of the listed company for 2022 was a loss of CNY 1.27 billion, compared to a loss of CNY 718.01 million in 2021[21]. - The net cash flow from operating activities decreased by 42.46% to CNY 74.11 million in 2022 from CNY 128.81 million in 2021[22]. - The total assets at the end of 2022 were CNY 5.02 billion, a decrease of 30.43% from CNY 7.22 billion at the end of 2021[22]. - The net assets attributable to shareholders of the listed company decreased by 60.97% to CNY 834.89 million at the end of 2022 from CNY 2.14 billion at the end of 2021[22]. - The company reported a net loss of CNY 12.73 billion in 2022, compared to a loss of CNY 7.18 billion in 2021, indicating a significant decline in financial performance[24]. - Basic and diluted earnings per share were both CNY -0.69 in 2022, worsening from CNY -0.39 in 2021[23]. - The weighted average return on equity was -84.67% in 2022, a decline from -27.81% in 2021[23]. Revenue Sources - The company’s franchise business saw significant revenue growth due to the successful hosting of the Beijing Winter Olympics[24]. - The gaming business showed signs of recovery with the mobile game "Attack City" entering a stable phase, contributing positively to profitability[24]. - 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[44]. - The company’s game business revenue increased by 50.63% year-on-year, attributed to the stable performance of the mobile game "Attack City" since its launch in April 2021[75]. - The company's cultural business revenue surged by 123.35% year-on-year, benefiting from the performance of the licensing business linked to the Winter Olympics[75]. Cinema Operations - In 2022, the company's cinema business achieved a total of 5.4414 million moviegoers and a total box office of 236 million yuan, accounting for 0.79% of the national box office, ranking 16th in the industry by box office revenue[35]. - The company closed 26 cinemas with poor operational efficiency and future potential, reducing losses through negotiations for rent reductions and cost controls[35]. - The cinema film screening and related derivative business reported revenue of ¥254,033,738.47, with a gross margin of -84.23%, reflecting a year-over-year revenue decrease of 45.45%[77]. - The film investment, production, and distribution segment generated revenue of ¥193,950,978.09, achieving a gross margin of 7.29%, with a significant year-over-year revenue increase of 74.01%[77]. Risk Management - The company has detailed potential risks in its report, which investors should be aware of[10]. - The company has taken measures to reduce debt risk by selling underlying assets of a trust plan, alleviating operational funding pressure[44][45]. - The company is facing increased financial pressure with a higher debt-to-asset ratio compared to previous years, complicating new loan applications and renewals[140]. - The company aims to enhance its internal control systems to mitigate risks related to legal disputes and contract issues that have been on the rise in the cultural industry[137]. Governance and Compliance - The audit report for the company was issued with a standard unqualified opinion by Zhongxing Caiguanghua Accounting Firm[4]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated any decision-making procedures for providing guarantees[8]. - The company adheres to legal and regulatory requirements for information disclosure, ensuring timely and accurate communication with all stakeholders[145]. - The company has not faced any penalties from securities regulatory authorities in the past three years[162]. Future Strategies - The company plans to enhance game product R&D and distribution, focusing on breakthrough SLG game products while expanding into other product types and overseas markets[120]. - The company aims to strengthen its brand image and undertake important content development tasks from local governments, prioritizing social benefits alongside economic returns[119]. - The company plans to leverage its experience from hosting the Winter Olympics to expand its cultural event business, targeting various domestic and international sports events for future collaborations[70]. - The company is focusing on high-quality content production to withstand market fluctuations and maintain competitiveness in the film and television sector[136]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 648, with 38 in the parent company and 610 in subsidiaries[173]. - The company has established a performance evaluation and incentive mechanism linking managerial compensation to company performance and individual achievements[145]. - The management team includes individuals with extensive experience in investment and cultural industries[151]. - The company has a diverse management team with a mix of genders and ages, promoting inclusivity[151]. Market Trends - The total box office for the national 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[46][49]. - The gaming industry in China is exploring new opportunities in areas such as minor protection, overseas market expansion, and technological innovation[115]. - The cultural industry is expected to play a larger role in the national economy, with ongoing reforms and the emergence of new cultural business models[117].