SXBN(SH:600831)2022-04-21 16:00Financial Performance - The company's operating revenue for 2021 was CNY 3,005,075,913.26, representing an increase of 8.88% compared to CNY 2,760,077,360.30 in 2020 [24]. - The net profit attributable to shareholders of the listed company was CNY 63,871,204.39, a 4.70% increase from CNY 61,002,861.60 in the previous year [24]. - The net profit after deducting non-recurring gains and losses was CNY 38,996,743.35, which is a significant increase of 67.44% from CNY 23,290,130.89 in 2020 [24]. - The total assets at the end of 2021 reached CNY 10,168,212,003.77, marking a 14.94% increase from CNY 8,846,522,657.83 at the end of 2020 [25]. - The net assets attributable to shareholders of the listed company increased to CNY 3,783,080,359.91, a 1.14% rise from CNY 3,740,482,848.82 in 2020 [25]. - The basic earnings per share for 2021 was CNY 0.0899, reflecting a 4.66% increase from CNY 0.0859 in 2020 [26]. - The diluted earnings per share was CNY 0.0886, up 3.87% from CNY 0.0853 in the previous year [26]. - The cash flow from operating activities net amount was CNY 120,077,790.49, a decrease of 43.28% compared to CNY 211,693,206.37 in 2020 [24]. Profit Distribution - The proposed profit distribution plan for 2021 is to distribute a cash dividend of 0.30 CNY per 10 shares, totaling approximately 21.32 million CNY, which accounts for 33.37% of the net profit attributable to shareholders [6]. - The proposed cash dividend for 2021 is 0.30 yuan per 10 shares, amounting to a total of 21,315,101.58 yuan, which represents 33.37% of the net profit attributable to shareholders [148]. Business Expansion and Strategy - The company plans to expand its business scope to include first-class value-added telecommunications services as part of its growth strategy [19]. - The company is actively transforming into a "cable + wireless" integrated media operator, focusing on smart broadcasting [49]. - The company aims to optimize its management processes and enhance operational efficiency through various initiatives, including supplier management and inventory optimization [46]. - The company is focusing on the development of smart broadcasting networks, leveraging new technologies like 5G and intelligent operating systems to enhance service offerings [104]. - The company is committed to expanding its smart broadcasting infrastructure as part of the national digital economy development plan [104]. Operational Challenges - The company is currently facing operational and financial risks due to the transition period of new and old driving forces, changes in industry market and user habits, and rapid technological updates [10]. - The company faces financial risks due to the transition from traditional to new business models, with cash flow pressures and increased accounts receivable [112]. - The company is addressing user retention risks due to competition from OTT TV and IPTV, focusing on improving user experience and optimizing service packages [114]. Subsidiaries and Investments - The company reported a net profit impact of over 10% from six subsidiaries, with positive contributions from Baoji Broadcasting and Xixian Broadcasting, and negative impacts from Guodian Xiaolai, Jinma Media, Guangtong Boda, and Smart Community [97]. - The company has 16 subsidiaries operating at a loss and 6 subsidiaries with negative net assets, prompting a focus on improving post-investment management and business restructuring [98]. - The company has a 49% stake in "Yunshang Shaanxi," a digital government construction and operation company, with a registered capital of CNY 500 million [89]. Governance and Management - The company is committed to enhancing its governance structure by separating personnel, assets, and finances from its controlling shareholders [117]. - The company has conducted over 10 training sessions for key personnel to improve compliance awareness and governance quality [118]. - The company has implemented measures to strengthen management control over subsidiaries, including appointing directors and supervisors to oversee operations and financial performance [153]. Social Responsibility and Community Engagement - The company is committed to social responsibility, focusing on economic benefits while protecting the rights of stakeholders and participating in community development and environmental protection initiatives [162]. - The company is actively supporting rural revitalization efforts by providing affordable cable TV services and engaging in local development projects [163]. Legal and Regulatory Matters - The company faced regulatory penalties for failing to timely release the 2019 annual performance forecast, resulting in a warning letter from the Shaanxi Securities Regulatory Bureau and a public reprimand from the Shanghai Stock Exchange [131]. - The company faced a significant lawsuit related to a contract dispute, resulting in a total payment of RMB 2.9215 million, which included a refund of RMB 300,000, compensation of RMB 2 million, and other fees [174]. Employee and Compensation Structure - The total number of employees in the parent company is 5,562, while the main subsidiaries have 1,123 employees, resulting in a total of 6,685 employees [140]. - The company has established a performance-based compensation system linking employee income to individual and departmental performance, ensuring fair and equitable distribution [146]. - The total pre-tax compensation for all directors and senior management amounted to 7,223,500 CNY [123].