LGWH(SH:601599)2021-06-07 16:00Financial Performance - The company’s operating revenue for 2020 was approximately ¥1.69 billion, a decrease of 44.24% compared to ¥3.04 billion in 2019[22]. - The net profit attributable to shareholders was a loss of approximately ¥1.02 billion, compared to a loss of ¥965.75 million in 2019[22]. - The cash flow from operating activities was negative ¥156.04 million, a decline of 143.40% from ¥359.53 million in 2019[25]. - The textile business revenue decreased by 24.94% to ¥1.93 billion, with international revenue dropping by 32.05% to ¥693.42 million[24]. - The company recognized impairment losses totaling approximately ¥766.53 million in 2020 due to the impact of the pandemic on the film industry[24]. - Basic earnings per share for 2020 were -¥1.14, compared to -¥1.08 in 2019[23]. - The weighted average return on equity was -96.53% for 2020, down from -46.10% in 2019[23]. - Total assets at the end of 2020 were approximately ¥3.82 billion, a decrease of 29.18% from ¥5.39 billion at the end of 2019[22]. - The company achieved an operating revenue of 1,692.69 million RMB, a decline of 1,342.75 million RMB or 44.24% compared to the previous year[60]. - The net profit attributable to shareholders was -1,022.12 million RMB, with the film segment suffering a total loss of 1,160.71 million RMB due to industry adjustments and the pandemic[70]. Audit and Compliance - The company received a standard unqualified audit report from the accounting firm, ensuring the financial report's authenticity and completeness[4]. - The company’s board of directors and management guarantee the report's accuracy and completeness, assuming legal responsibility for any misstatements[8]. - The company has adhered to the revised accounting policies in accordance with national standards[133]. - The company has retained the same auditing firm for 2020, continuing its relationship with Gongzheng Tianye Accounting Firm[136]. - The company has not faced any significant litigation or arbitration matters during the reporting period[137]. Shareholder and Dividend Policy - The company will not distribute cash dividends for the year 2020, nor will it increase capital from reserves or distribute bonus shares, pending shareholder approval[5]. - The company did not adjust its cash dividend policy during the reporting period, adhering to the established shareholder return plan[126]. - The profit distribution policy is clear and complies with the company's articles of association, ensuring the protection of minority investors' rights[126]. - The company has not proposed any capital reserve transfers or bonus shares for the 2020 fiscal year[127]. - The company has maintained its commitment to independent directors providing opinions on profit distribution plans[126]. Operational Challenges and Strategies - The company has not disclosed any significant operational changes or new strategies in the current report[7]. - The company plans to negotiate with clients for returning unbroadcasted dramas to mitigate losses in the film segment[24]. - The company is focusing on reducing costs through centralized procurement of raw materials in response to price increases[25]. - The company is focusing on expanding its domestic market presence to counteract the adverse effects of the pandemic on foreign trade[60]. - The company is responding to the impacts of the COVID-19 pandemic by increasing product development and sales efforts to mitigate order disruptions from international clients[115]. Legal Matters - The company is currently facing multiple lawsuits with significant amounts involved, indicating potential financial implications[138][139][140]. - The company has been actively engaging in mediation and arbitration to resolve ongoing legal disputes[138][139][140]. - The outcomes of these legal proceedings may impact the company's financial stability and future operations[138][139][140]. Environmental and Social Responsibility - The company is committed to environmental protection and adheres to national pollution discharge standards[149]. - The company has maintained compliance with national and local environmental regulations, with no environmental accidents or administrative penalties reported[159]. - The company has achieved ISO14001 environmental management system certification, demonstrating its commitment to environmental management[158]. Management and Governance - The company has a diverse management team with extensive experience in various sectors of the cultural industry[178]. - The company is focused on expanding its influence in the cultural industry through strategic appointments and board restructuring[179]. - The company continues to strengthen its governance structure by electing qualified individuals to key positions[179]. - The independent directors accounted for one-third of the total number of board members, ensuring effective governance[194]. - The company has established a comprehensive governance structure that promotes accountability and effective decision-making[193].