KEDA GROUP(SH:600986)2022-03-30 16:00Financial Performance - The company's consolidated net profit attributable to shareholders for 2021 was CNY 294,383,714.38, representing a 211.98% increase compared to CNY 94,359,600.45 in 2020[6]. - Operating revenue for 2021 reached CNY 14,293,791,849.70, a 54.35% increase from CNY 9,260,567,256.86 in 2020[26]. - The net profit after deducting non-recurring gains and losses was CNY 246,238,881.97, up 242.82% from CNY 71,827,125.84 in the previous year[26]. - The company's total assets as of the end of 2021 were CNY 7,650,574,587.36, an increase of 9.11% from CNY 7,011,521,922.61 at the end of 2020[26]. - The net assets attributable to shareholders at the end of 2021 were CNY 3,941,782,135.91, reflecting an 8.18% increase from CNY 3,643,575,340.62 at the end of 2020[26]. - The company reported a negative cash flow from operating activities of CNY -601,774,242.33 for 2021, worsening from CNY -113,991,668.59 in 2020[26]. - Basic earnings per share increased to CNY 0.22, up 214.29% from CNY 0.07 in 2020[27]. - The weighted average return on equity rose to 7.76%, an increase of 5.13 percentage points compared to 2.63% in 2020[27]. - The company reported a significant increase in investment income, amounting to CNY 53,515.59 million, a year-on-year growth of 2,252.71%[64]. - The company achieved operating revenue of CNY 1,429,379.18 million, a year-on-year increase of 54.35%[63]. - Net profit reached CNY 30,457.68 million, representing a significant year-on-year increase of 204.26%[63]. - The net profit attributable to the parent company was CNY 29,438.37 million, up 211.98% compared to the previous year[63]. Dividend Policy - As of December 31, 2021, the cumulative distributable profits of the parent company were negative CNY -1,256,324,568.97, which did not meet the conditions for cash dividends[6]. - The company plans not to distribute cash dividends or bonus shares for the 2021 fiscal year due to the negative distributable profits[6]. Strategic Initiatives - The company is actively restructuring its equity and has introduced Zhejiang Cultural Investment as a controlling shareholder[40]. - A private placement plan was disclosed on December 29, 2021, to issue up to 165 million shares at CNY 4.85 each to further increase the stake of the state-owned shareholder[40]. - The company is focusing on digital marketing and cultural innovation as part of its strategic direction[39]. - The company has established a mixed-ownership governance structure to promote steady performance improvement[40]. - The company is focusing on enhancing its marketing technology capabilities to provide more efficient marketing solutions for clients[49]. - The company is exploring opportunities in emerging fields such as the metaverse and blockchain technology[100]. - The company aims to enhance its digital marketing capabilities through the integration of AI technologies and innovative applications[100]. - The company is focusing on developing virtual digital assets, esports predictions, and live e-commerce as part of its innovation business segment, leveraging existing client resources[106]. Market Expansion and Innovation - The digital marketing industry is projected to grow, with China's online advertising market expected to reach approximately 1.2 trillion CNY by 2023, reflecting a year-on-year growth of 21.9% in 2021[46]. - The company has successfully developed and launched two virtual digital personas, "Jun Ruo Jin" and "Lan_Lan," contributing to its positioning in the metaverse sector[42]. - The company established a wholly-owned subsidiary, Hangzhou Zhewen Technology, to explore new business avenues, including virtual digital assets and e-sports event predictions[42]. - The company has expanded into new business areas including virtual digital assets and live e-commerce, demonstrating its innovative execution capabilities[62]. - The company aims to solidify its leading position in the automotive sector while expanding into high-end luxury brands and enhancing profitability through innovative marketing strategies[104]. Governance and Compliance - The report includes a standard unqualified audit opinion from Tianyuan Certified Public Accountants[5]. - The company emphasizes shareholder rights protection and has implemented a reasonable profit distribution policy to enhance investor confidence[179]. - The company has committed to enhancing its governance structure and internal controls to protect shareholder rights and promote sustainable development[117]. - The company strictly follows information disclosure regulations, ensuring transparency and fairness in its communications with shareholders[121]. - The company has not provided guarantees for its controlling shareholder or related parties during the reporting period[118]. - The company has committed to maintaining the independence of the listed company and ensuring no harm to the rights of shareholders through related transactions[194]. Employee and Management Practices - The company maintained an employee count of around 1,200, supporting rapid revenue growth with industry-leading efficiency[45]. - The company has a total of 55 employees with a master's degree or higher, and 965 employees with a bachelor's degree[160]. - The company has implemented a leading compensation strategy for key positions to prevent talent loss while controlling labor costs[163]. - The company emphasizes the importance of talent retention in the digital marketing sector, as core talent is crucial for sustainable growth[110]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 7.6918 million yuan[145]. Social Responsibility and Sustainability - The company actively engages in social responsibility initiatives and aims to contribute to local economic development and employment[185]. - The management team emphasized a focus on sustainability and corporate social responsibility in future business strategies[138]. - The company strictly adheres to environmental protection laws and regulations, with no violations or administrative penalties reported during the reporting period[177].