INLY(SH:603598)2023-04-28 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥4.33 billion, a decrease of 21.17% compared to ¥5.50 billion in 2021[22]. - The net profit attributable to shareholders for 2022 was approximately -¥100.02 million, an improvement of 51.76% from -¥207.34 million in 2021[22]. - The net cash flow from operating activities was ¥121.95 million, down 33.48% from ¥183.33 million in 2021[22]. - Total assets at the end of 2022 were approximately ¥1.38 billion, a decrease of 18.83% from ¥1.71 billion at the end of 2021[22]. - The net assets attributable to shareholders decreased by 41.14% to approximately ¥145.43 million at the end of 2022 from ¥247.09 million at the end of 2021[22]. - The company reported a decrease in revenue from its main business activities, with a total of approximately ¥4.33 billion, down 21.19% from ¥5.49 billion in 2021[22]. - The basic earnings per share for 2022 was -0.37 CNY, a 51.95% improvement compared to -0.77 CNY in 2021[23]. - The diluted earnings per share for 2022 was also -0.37 CNY, reflecting the same 51.95% improvement from the previous year[23]. - The weighted average return on equity increased by 8.45 percentage points to -50.96% in 2022 from -59.41% in 2021[23]. - The total revenue for Q4 2022 was 1,231,885,772.19 CNY, with a net profit attributable to shareholders of -126,031,018.20 CNY[25]. - The net cash flow from operating activities in Q4 2022 was 247,601,594.26 CNY, indicating a positive cash flow after previous quarters' losses[25]. - The company reported a goodwill impairment of CNY 28,315,800.00 in 2022, with the goodwill balance reduced to zero[61]. - The company reported a net loss of CNY 144,535,213.02 in 2022, compared to a loss of CNY 44,519,744.80 in 2021, reflecting a worsening of approximately 224.5%[197]. Business Strategy and Operations - The company plans not to distribute profits or increase capital reserves for the year 2022 due to operating losses[5]. - The company has acknowledged potential risks in its future development strategies and operational plans[6]. - The company focuses on a comprehensive marketing solution that integrates brand marketing, performance marketing, social marketing, and data marketing consulting[33]. - The company aims to enhance service quality and efficiency for existing clients while expanding its high-quality client base to sustain healthy growth in brand marketing[34]. - The company has introduced the "IP Full-Field Marketing 4.0" concept to leverage IP value across multiple marketing scenarios[34]. - The company completed nearly 20,000 original short video advertisements and served over 500 clients across various industries, including education, finance, and e-commerce in 2022[35]. - The company has developed the "Nuclear Power Intelligent Selection System," which integrates a database of over one million influencers and covers major social media platforms, enhancing social marketing efficiency[36]. - The e-commerce marketing business has expanded its service capabilities, focusing on sectors such as food, beauty, and 3C digital products, with a goal to increase brand signing numbers and enhance brand incubation capabilities[38]. - The company aims to leverage new technologies such as AIGC and VR/AR to enhance marketing services and improve consumer engagement[44]. - The company will implement a "4+1" operational plan in 2023, focusing on four advertising marketing lines: brand, performance, social, and e-commerce, along with e-commerce operations[88]. - The company aims to enhance its full-chain marketing service capabilities, integrating brand marketing, performance marketing, social marketing, and e-commerce marketing to meet diverse client needs[86]. - The company plans to strengthen its data technology platform and develop a comprehensive data system to enable real-time digital insights and intelligent decision-making[89]. - The company will actively explore AI+ marketing applications, leveraging AIGC+ technology to transform its business model and improve gross margins[90]. Market and Industry Insights - The digital economy is projected to account for 10% of GDP by 2025, with the marketing and e-commerce service industry playing a crucial role in driving high-quality economic development[44]. - The advertising market in 2022 saw a slight growth of 1.4%, reaching 663.92 billion yuan, driven by increased online user engagement[42]. - The company has achieved a 24.1% year-on-year growth in the brand e-commerce service market, reaching a market size of 366.32 billion yuan in 2022[43]. Governance and Compliance - The company emphasizes the importance of investor relations, with a dedicated office responsible for communication and feedback from institutional investors and minority shareholders[104]. - The board of directors and supervisory board are composed in accordance with legal regulations, ensuring independent oversight of the company's operations and financial status[104]. - The company has implemented measures to maintain the independence of its assets, personnel, and operations, with no significant changes in competitive conditions reported[104]. - The company has a commitment to transparency, adhering to the Shanghai Stock Exchange's disclosure rules to ensure timely and accurate information for all shareholders[104]. - The company’s governance structure aligns with the requirements set by the China Securities Regulatory Commission, with no significant discrepancies noted[104]. - The company has established specialized committees, including the audit committee and the remuneration and assessment committee, to enhance governance[114]. - The company has a structured process for the appointment and evaluation of directors, ensuring compliance with regulations[114]. - The company has made commitments to avoid competition with related parties and ensure compliance with relevant laws and regulations regarding related transactions[138]. - The company is focused on maintaining compliance with relevant laws and regulations regarding related party transactions[140]. Employee and Management Structure - The company had a total of 800 employees, with 621 in the parent company and 179 in major subsidiaries[121]. - The employee composition includes 136 sales personnel, 35 technical staff, 39 financial staff, and 173 media strategy personnel[121]. - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to 530.57 million yuan[104]. - The company’s performance evaluation for senior management is based on annual performance indicators set by the remuneration and assessment committee[110]. Financial Management and Investments - The company optimized its customer structure and strengthened accounts receivable management to ensure healthy cash flow[61]. - The total operating cost decreased by 21.31% to CNY 4,136,305,924.46, reflecting adjustments in business structure and client base[62]. - The company’s investment income turned negative at CNY -2,695,035.36, a decrease of 262.67% compared to the previous year[62]. - The company has committed to increasing investment in data technology and talent development to drive its digital transformation[85]. Risks and Challenges - The company faces risks from intensified market competition and technological changes that may disrupt its marketing business model[93][94]. - The company reported significant losses in its subsidiaries, with Zhuhai Shitong Chaoran Cultural Media Co., Ltd. posting a net loss of approximately 21.85 million yuan[84]. Environmental and Social Responsibility - The company did not implement any carbon reduction measures during the reporting period, resulting in no reduction in carbon dioxide equivalent emissions[134]. - The company did not disclose a separate social responsibility report, sustainable development report, or ESG report[135]. - The company has not reported any significant environmental or social responsibility initiatives during the reporting period[135].