Thinkingdom Media (SH:603096)2021-04-19 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 219,689,297.19 CNY, a decrease of 8.57% compared to 2019[5]. - The total revenue for 2020 was 875,930,307.77 CNY, reflecting a decline of 5.34% from the previous year[21]. - The company reported a net profit of 200,291,503.51 CNY for the parent company, with distributable profits amounting to 743,075,193.56 CNY[5]. - Basic earnings per share decreased by 8.99% to CNY 1.62 in 2020 compared to CNY 1.78 in 2019[23]. - Diluted earnings per share fell by 9.60% to CNY 1.60 in 2020 from CNY 1.77 in 2019[23]. - The total profit was 293.85 million yuan, down 8.32% year-on-year[56]. - The net profit attributable to shareholders was 219.69 million yuan, a decline of 8.57% from the previous year[56]. - The company achieved operating revenue of 875.93 million yuan, a decrease of 5.34% compared to the previous year[56]. Assets and Liabilities - The company's net assets increased by 7.36% year-on-year, reaching 2,048,983,774.14 CNY by the end of 2020[21]. - The total assets rose to 2,235,639,118.06 CNY, marking a 6.77% increase compared to the end of 2019[21]. - The company's cash and cash equivalents increased by 142.35% at the end of the period, primarily due to the maturity of financial products[37]. - The company's goodwill increased by 63.14% due to the acquisition of an overseas company during the reporting period[37]. - The company's overseas assets amounted to 235.67 million yuan, accounting for 10.54% of total assets[37]. Cash Flow - The cash flow from operating activities was 196,800,703.12 CNY, down 17.42% from the previous year[21]. - The company reported a net cash flow from operating activities of CNY 126,177,232.58 in the fourth quarter of 2020[26]. - The net cash flow from operating activities decreased to approximately 19.68 million yuan, down from 23.83 million yuan in the previous year[75]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of 7.50 CNY per 10 shares (including tax) and to convert 2 shares from capital reserves for every 10 shares held[5]. - The company distributed a cash dividend of 7.50 RMB per 10 shares, totaling 101,481,000 RMB, which represents 42.23% of the audited net profit attributable to shareholders for 2019[106]. - The company commits to a stable and proactive profit distribution policy, ensuring that cash distributions will not be less than 20% of the distributable profit for the year[107]. - The total number of shares for the 2020 dividend distribution is based on 135,885,000 shares, excluding 2,792,075 shares held in the repurchase account, resulting in a total cash dividend of 99,819,693.75 RMB[109]. Business Operations - The domestic book retail market saw a decline of 5.08% in 2020, marking the first negative growth in five years[35]. - The number of book titles selling over one million copies dropped from 49 in 2019 to 24 in 2020[35]. - The company continues to expand its international publishing platform by investing in overseas publishers and enhancing its copyright resources[34]. - The company launched 237 new self-owned copyright books during the reporting period, a decrease of 119 from 2019, with total revenue from this segment at 706.60 million yuan, down 1.59% year-on-year[46]. - The children's book segment generated revenue of 237.45 million yuan, an increase of 11.67% year-on-year, with a gross margin of 50.94%, up 0.70 percentage points[47]. - The company’s digital book segment saw revenue of 24.08 million yuan, a growth of 36.87% compared to the previous year, benefiting from partnerships with major platforms[51]. Risks and Challenges - The company does not foresee any significant risks that could materially affect its operations during the reporting period[8]. - The company faces risks from rising raw material prices, particularly paper, which may affect cost control in 2021[101]. - The ongoing COVID-19 pandemic in the U.S. and Europe poses a risk to the company's overseas business development[103]. - The company is addressing the risk of intellectual property infringement, which has become more severe with the rise of the internet and sharing platforms[102]. Governance and Compliance - The company has maintained a standard unqualified audit opinion from its accounting firm, ensuring the accuracy and completeness of its financial reports[4]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has no major litigation or arbitration matters during the reporting period, indicating a stable legal standing[124]. - The company has committed to avoid and reduce related party transactions, ensuring compliance with market principles and legal regulations[117]. - The company has established specialized committees within the board, including a strategy committee and an audit committee, to enhance decision-making processes[195]. Shareholder Information - The total number of ordinary shares before the changes was 135,308,000, with 81,000,000 shares being restricted shares[146]. - The largest shareholder, Chen Mingjun, holds 71,584,945 shares, representing 52.68% of the total shares, with 9,310,000 shares pledged[159]. - The total number of ordinary shareholders increased from 4,165 to 5,489 during the reporting period[157]. - The company has a total of 71,584,445 shares under lock-up conditions for Chen Mingjun, which will be released after 36 months from the listing date[162]. Employee and Management - The total number of employees in the parent company is 383, and the total number of employees in major subsidiaries is 36, resulting in a combined total of 419 employees[187]. - The company has implemented a competitive salary system, adjusting employee compensation upwards during the reporting period to attract and retain talent[189]. - The training program for employees has been enhanced, with an increase in training courses and a shift to online formats due to the COVID-19 pandemic, receiving positive feedback from employees[190]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.3617 million yuan[184].