Thinkingdom Media (SH:603096)2022-04-28 16:00Financial Performance - The net profit attributable to shareholders for 2021 was CNY 130,648,069.76, with a profit distribution plan proposing a cash dividend of CNY 6 per 10 shares, totaling CNY 95,059,214.40, which accounts for 72.76% of the net profit [7]. - The total cash dividend, including share repurchase, amounted to CNY 255,444,590.93, representing 195.52% of the net profit attributable to shareholders [7]. - The company achieved a total revenue of RMB 921.64 million in 2021, representing a year-on-year increase of 5.22% [25]. - Net profit attributable to shareholders decreased by 40.53% to RMB 130.65 million, while the net profit after deducting non-recurring gains and losses fell by 33.54% to RMB 117.85 million [25]. - The basic earnings per share (EPS) for 2021 was RMB 0.80, a decrease of 40.74% compared to RMB 1.35 in 2020 [26]. - The weighted average return on equity (ROE) decreased by 4.40 percentage points to 6.73% in 2021 [26]. - The company's operating cash flow net amount was RMB 183.46 million, down 6.78% from the previous year [25]. - The company’s total assets at the end of 2021 were RMB 2,188.43 million, a decrease of 2.11% from the previous year [25]. - The company’s net assets attributable to shareholders decreased by 6.22% to RMB 1,921.55 million at the end of 2021 [25]. Shareholder Returns - The company plans to maintain the per-share distribution amount even if the total share capital changes before the dividend distribution date [8]. - The company plans to distribute at least 20% of the annual distributable profit to shareholders in cash each year [144]. - The company completed a cash dividend distribution of CNY 0.75 per share (including tax) and a bonus share distribution of 0.2 shares per share on June 10, 2021 [116]. - The total cash dividend for 2021 amounted to 255,444,590.93 CNY, representing 195.52% of the audited net profit attributable to shareholders for the same year [144]. Operational Highlights - The company reported a net loss of RMB 30.07 million from overseas operations, an increase in loss of RMB 22.54 million compared to the previous year [35]. - The company received government subsidies totaling RMB 10.83 million, a decrease of RMB 25.39 million from the previous year [35]. - The company’s book planning and publishing business achieved revenue of 828.23 million yuan in 2021, a year-on-year increase of 3.13% [36]. - The revenue from self-owned copyright books was 732.94 million yuan, up 3.73% year-on-year, with a gross margin of 50.85%, an increase of 0.65 percentage points [36]. - The literature segment generated revenue of 454.65 million yuan, a 12.67% increase year-on-year, with a gross margin of 50.69%, up 1 percentage point [37]. - The children's book segment saw revenue of 210.91 million yuan, a decline of 11.18% year-on-year, but the gross margin increased by 0.99 percentage points to 50.85% [37]. - The digital content business reported revenue of 23.41 million yuan, a decrease of 2.79% year-on-year, with a gross margin of 61.46%, down 1.39 percentage points [39]. - The overseas business generated revenue of 68.28 million yuan, a significant increase of 43.94% year-on-year, primarily driven by an 81.20% increase in U.S. book sales [41]. Risk Management - There were no significant risks impacting the company's operations during the reporting period [12]. - The company faces risks related to intellectual property infringement, particularly with the rise of e-commerce platforms [96]. - The company is also aware of potential risks in overseas business development and new product launches not meeting expectations [98]. - The company is implementing measures to manage market volatility and supply chain disruptions due to external factors [99]. Governance and Compliance - The company has maintained a standard unqualified audit report from its accounting firm, Lixin Certified Public Accountants [6]. - The board of directors and management have confirmed the accuracy and completeness of the financial report [4]. - The company emphasizes shareholder rights, ensuring all proposals presented to the shareholders' meeting are voted on and results are disclosed on the Shanghai Stock Exchange website [105]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements [108]. - The company maintains complete independence from its actual controllers in terms of assets, personnel, finance, and operations, with no non-operating occupation of company funds [107]. Strategic Initiatives - The company plans to continue investing in overseas business development, including recruitment, copyright acquisition, product development, and marketing [35]. - The company aims to enhance its content innovation capabilities and strengthen its core competitiveness by focusing on quality content and IP development [92]. - The company plans to integrate marketing and sales channels to optimize content dissemination and improve user engagement [94]. - The company is committed to promoting Chinese culture internationally and enhancing the efficiency of its overseas business operations [95]. Human Resources - The company employed a total of 480 staff members, including 422 in the parent company and 58 in major subsidiaries [134]. - The workforce consists of 310 production personnel, 89 sales personnel, 14 technical personnel, 15 financial personnel, and 52 administrative personnel [135]. - The company has a total of 194 employees with a master's degree or above, and 235 with a bachelor's degree [135]. - The company has implemented a training program that includes new employee orientation and management training to enhance employee skills and retention [139]. - The company has established a talent development strategy, promoting young talents to middle management positions [138]. Financial Management - The company has various wealth management products with annualized returns ranging from 0.30% to 3.63% [176]. - The company reported a total of 9,000.00 million RMB in entrusted financial management with an annualized return of 1.65% [178]. - The company achieved a total of 10,000.00 million RMB in "随享存" financial products with a return of 2.25% [177]. - The company has a total of 5,000.00 million RMB in structured deposits with an interest rate of 3.10% [178]. - The company has a total of 6,000.00 million RMB in structured deposits with an interest rate of 3.20% [177]. Shareholder Structure - The largest shareholder, Chen Mingjun, holds 85,901,934 shares, representing 52.86% of the total shares, with 9,900,000 shares pledged [189]. - The second-largest shareholder, Chen Liping, holds 5,880,000 shares, accounting for 3.62% of the total shares, with 2,000,000 shares pledged [189]. - The company has repurchased 4,071,561 shares, which is 2.51% of the total share capital, as part of its stock incentive plan [190]. - The top ten shareholders include various investment funds, with the largest fund holding 4,536,800 shares, or 2.79% of the total shares [190].