Thinkingdom Media (SH:603096)2019-04-19 16:00Financial Performance - In 2018, the company achieved a net profit attributable to shareholders of 240,814,176.91 CNY, representing a 3.65% increase compared to 232,322,877.80 CNY in 2017[5]. - The company's total revenue for 2018 was 926,050,369.00 CNY, a decrease of 1.90% from 943,971,002.72 CNY in 2017[24]. - The company's net assets increased by 14.42% to 1,744,571,147.50 CNY at the end of 2018, compared to 1,524,651,188.41 CNY at the end of 2017[24]. - The total assets of the company rose by 11.29% to 1,984,597,614.75 CNY at the end of 2018, up from 1,783,259,778.06 CNY at the end of 2017[24]. - Basic earnings per share decreased by 5.79% to CNY 1.79 in 2018 compared to CNY 1.90 in 2017[25]. - Diluted earnings per share fell by 6.35% to CNY 1.77 in 2018 from CNY 1.89 in 2017[25]. - The weighted average return on equity decreased by 4.34 percentage points to 14.99% in 2018 from 19.33% in 2017[25]. - The gross margin for the main business was 46.27%, up by 2.59 percentage points from the previous year[54]. - The company reported a total of CNY 45,882,435.83 in non-recurring gains and losses for 2018[29]. Cash Flow and Dividends - The operating cash flow net amount for 2018 was -17,205,526.21 CNY, a significant decrease of 114.06% compared to 122,330,976.72 CNY in 2017[24]. - The company proposed a cash dividend of 6 CNY per 10 shares, totaling a distribution of 80,796,000.00 CNY for the year[5]. - For 2018, the company achieved a net profit of 240,814,176.91 RMB, with a proposed cash dividend of 6 RMB per 10 shares, amounting to 81,184,800 RMB, which is 33.71% of the net profit[103]. - The company commits to distributing at least 20% of the annual distributable profit as cash dividends, with a review of the dividend policy at least every three years[103]. Revenue Breakdown - The company launched 396 new self-owned copyright titles in 2018, generating revenue of CNY 691.58 million from self-owned copyright book planning and distribution, a slight decrease of 0.31% compared to the previous year[46]. - The revenue from literary books was CNY 485.07 million, down 3.98% year-on-year, primarily due to a significant decline in sales of three major titles by author Higashino Keigo, which saw a combined revenue drop of approximately 40%[46]. - Revenue from children's books reached CNY 147.47 million, growing by 10.95% year-on-year[50]. - Digital book revenue surged to CNY 22.20 million, marking a significant increase of 137.95% compared to the previous year[51]. - Revenue from non-self-owned copyright book publishing declined by 7.43% to CNY 127.01 million, primarily due to reduced sales following the end of the TV series "In the Name of the People"[50]. - The company’s self-owned copyright book planning and publishing accounted for the highest proportion of its business segments[79]. - In 2018, the company's self-owned copyright book publishing and distribution generated revenue of 691.58 million RMB, a decrease of 0.31% year-on-year, accounting for 74.79% of total revenue[83]. Operational Highlights - The company did not face any significant operational risks during the reporting period[8]. - The company plans to continue its focus on market expansion and new product development in the upcoming year[6]. - The company has no non-operational fund occupation by controlling shareholders or related parties[7]. - There were no violations of decision-making procedures regarding external guarantees during the reporting period[8]. - The company maintained a competitive edge in copyright acquisition, with approximately 3,900 types of copyrights authorized, including works from notable domestic authors[41]. - The company expanded its distribution channels by opening official flagship stores on Tmall, enhancing its understanding of consumer behavior[42]. Employee and Management Structure - The company has a total of 117 employees with a graduate degree or above, and 224 employees with a bachelor's degree[182]. - The company emphasizes a fair and competitive compensation system based on internal equity and external competitiveness, aligning with its cultural and strategic goals[183]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal requirements and effective governance[189]. - The company has established multiple channels for investor communication, including an investor relations section and dedicated contact methods[191]. - The company has engaged an external accounting firm to evaluate its internal control system across various aspects, ensuring healthy and orderly development[192]. Strategic Initiatives - The company implemented a stock incentive plan for 90 core employees, granting a total of 4.64 million shares, which has fostered a stronger alignment between employee performance and company development[43]. - The company aims to establish a dedicated editorial department for non-fiction books in 2019 to enhance its content offerings[96]. - The company recognizes the importance of talent acquisition and training to maintain innovation within its teams[97]. - The company plans to continue focusing on digital book sales and retail expansion as part of its future strategy[60]. Compliance and Governance - The company has committed to repurchasing shares if any false statements or omissions are found in the prospectus, ensuring investor compensation for losses[115]. - The company will disclose any related party transactions in accordance with market principles to protect the rights of minority shareholders[113]. - The company has established a plan to monitor and supervise stock buybacks and shareholding increases by its controlling shareholders and executives[115]. - The company has made changes to accounting policies, including the reclassification of "research and development expenses" to a separate line item, impacting the profit statement by an increase of ¥4,283,156.10[120]. - The company has appointed Lixin Accounting Firm as its auditor for the 2018 fiscal year, with an audit fee of ¥1,000,000 and an internal control audit fee of ¥500,000[124].