KEDA GROUP(SH:600986)2021-03-30 16:00Financial Performance - The net profit attributable to the parent company for 2020 was CNY 94,359,600.45, while the accumulated undistributed profit as of December 31, 2020, was CNY -1,303,067,903.58[5] - The company will not distribute cash dividends for 2020 due to the negative accumulated undistributed profit, which does not meet the conditions for cash dividends[5] - The company's operating revenue for 2020 was approximately ¥9.26 billion, a decrease of 50.96% compared to ¥18.88 billion in 2019[27] - The net profit attributable to shareholders for 2020 was approximately ¥94.36 million, a significant recovery from a loss of ¥2.51 billion in 2019[27] - The net cash flow from operating activities for 2020 was approximately -¥113.99 million, a decline of 121.37% compared to ¥533.33 million in 2019[27] - The total assets at the end of 2020 were approximately ¥7.01 billion, down 15.27% from ¥8.28 billion at the end of 2019[27] - The basic earnings per share for 2020 was ¥0.07, compared to a loss of ¥1.89 per share in 2019[27] - The net profit after deducting non-recurring gains and losses for 2020 was approximately ¥71.83 million, recovering from a loss of ¥2.62 billion in 2019[27] Business Strategy and Development - The company established an innovation business division in 2020 to explore new areas such as short videos, live e-commerce, and game business[35] - The company aims to enhance its digital marketing solutions by leveraging data analysis and technology to improve user conversion rates[34] - The company plans to raise funds through a targeted issuance to build an intelligent marketing platform, improving data analysis and operational efficiency[45] - The company is actively exploring new business opportunities in short video marketing and e-commerce live streaming, with some live streaming events achieving GMV exceeding CNY 1 million[56] - The company aims to leverage 5G and big data opportunities to enhance its digital cultural industry platform and improve competitive capabilities[50] - The company plans to strengthen its marketing capabilities through team building and resource allocation in the short video and e-commerce sectors[56] Market Trends and Challenges - The digital marketing industry in China is projected to reach nearly ¥800 billion in 2020, despite a slowdown in growth due to economic conditions and the pandemic[36] - The digital marketing business is facing challenges due to the COVID-19 pandemic, necessitating a transformation to find new profit growth points[49] - The rapid expansion of the short video and live streaming market is creating new user shopping habits, indicating a promising future for these marketing channels[42] - The digital marketing industry is entering a phase of efficiency enhancement and cost reduction, with a focus on providing intelligent marketing services[81] Governance and Compliance - The report includes a standard unqualified audit opinion from Tianyuan Certified Public Accountants[4] - The company has confirmed that all board members attended the board meeting, ensuring accountability for the report's accuracy[4] - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[7] - There are no violations of decision-making procedures regarding external guarantees[7] - The company has maintained a competitive compensation and incentive system to retain core management and key personnel, aiming to stabilize its core team[91] - The company has committed to avoid competition with its controlling shareholders and ensure independence in operations, which is crucial for maintaining market position[99] Financial Management and Assets - The total assets decreased from 827,547.51 million yuan at the beginning of the year to 701,152.19 million yuan at the end of the year, while total liabilities decreased from 463,316.53 million yuan to 326,622.47 million yuan, resulting in a reduction of the asset-liability ratio from 55.99% to 46.58%[137] - The company reported a significant decrease in trading financial assets, down 94.39% to 7,615,232.65 CNY, primarily due to performance compensation adjustments[71] - The company’s total liabilities included a 59.06% increase in current non-current liabilities, amounting to 175,138,847.06 CNY[73] - The company’s cash flow from investment activities was 51,665,193.93 CNY, primarily due to the recovery of bank wealth management products[69] Shareholder Structure and Equity - The total number of ordinary shares decreased from 1,325,192,361 to 1,324,552,361, reflecting a reduction of 640,000 shares[130] - The total number of ordinary shareholders reached 77,849 by the end of the reporting period[137] - The report indicates that there are no controlling shareholders or actual controllers, as no shareholder has significant voting power[146] - The company has a commitment from certain shareholders not to sell their shares for 36 months post-IPO, including 4,984,388 shares held by Zhang Juzhou[142] Employee and Management Information - The company employed a total of 1,460 staff, with 1,433 in major subsidiaries and 27 in the parent company[176] - The company has a total of 663 sales/business personnel, 243 technical/design personnel, and 124 management personnel[176] - The total remuneration for all directors, supervisors, and senior management personnel at the end of the reporting period amounted to 7.3227 million yuan[170] - The company has implemented a salary policy combining basic salary and year-end assessment for senior management, with ordinary employees' salaries determined by their positions[177] Risk Management - The company has experienced core talent turnover post-acquisitions, which could adversely affect business development and performance if not managed properly[91] - The company faces risks in digital marketing due to increasing competition and the need for innovation in content, data, and terminal aspects, as advertisers demand higher data management capabilities[89] - The company has implemented internal controls to assess and review the adequacy of bad debt provisions[200] Corporate Social Responsibility - The company donated RMB 1 million to Wuhan Charity Association during the COVID-19 pandemic for medical support and facilities[125] - The company is committed to environmental protection and complies with relevant laws and regulations without any violations reported[126]