OBM(SH:603729)2020-04-29 16:00Financial Performance - In 2019, the company reported a net profit attributable to shareholders of -58,738,833.01 RMB, a significant decline compared to a profit of 22,879,188.74 RMB in 2018, marking a change of not applicable[5]. - The total operating revenue for 2019 was 642,922,500.70 RMB, down 46.19% from 1,194,908,372.75 RMB in 2018[22]. - The company's basic earnings per share decreased by 352.00% compared to the previous year, resulting in a loss of CNY 0.63 per share[25]. - Net profit attributable to shareholders dropped by 356.73% year-on-year, primarily due to losses from equity transfers and a decline in business volume[24]. - Operating revenue for the reporting period fell by 46.19% compared to the previous year, attributed to a downturn in conventional agency business[23]. - The net profit attributable to shareholders was -¥58,738,833.01, a decline of 356.73% year-on-year[45]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥52,127,603.68, a decrease of 386.18% compared to the same period last year[45]. - The advertising sector generated revenue of ¥633,250,151.21, down 47.00% year-on-year, with a gross margin of 7.53%[51]. Cash Flow and Assets - The net cash flow from operating activities improved to 161,024,671.25 RMB in 2019, compared to -29,318,386.38 RMB in 2018[22]. - The company's total assets decreased by 11.18% to 1,134,718,790.23 RMB at the end of 2019, down from 1,277,490,397.46 RMB at the end of 2018[22]. - The company's net assets attributable to shareholders decreased by 7.39% to 806,201,926.95 RMB at the end of 2019, compared to 870,551,303.22 RMB at the end of 2018[22]. - The net cash inflow from operating activities was 161.02 million yuan, attributed to a decrease in business volume and higher customer repayments[59]. - The net cash outflow from investment activities was 127.02 million yuan, primarily due to the cash acquisition of a 42% stake in Yuheng Film[60]. - The company's cash and cash equivalents remained stable at 156.45 million yuan as of the end of 2019[112]. Business Operations and Strategy - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The company aims to enhance its main business profitability by focusing on content and customer needs through comprehensive marketing services[43]. - The company is actively seeking investment opportunities to promote its main business development, including establishing subsidiaries and expanding into diverse industries[44]. - The company plans to enhance its core competitiveness by strengthening content marketing and integrating service content[44]. - The company has established new subsidiaries, including Longyun Wine Industry and Longxin Education, to expand its commercial layout and seek additional profit growth points[40]. - The company plans to deepen its content marketing capabilities and adapt its business model to focus on content production, leveraging its strategic resources[79]. Risks and Challenges - The company faces significant risks and uncertainties that may impact future performance, as detailed in the report[7]. - The company anticipates challenges due to intensified market competition and macroeconomic pressures[81]. - The company faced risks from intensified industry competition and a significant increase in demand for advertising and marketing monetization due to macroeconomic downturns and reduced advertiser budgets[82]. - The ongoing impact of the COVID-19 pandemic remains uncertain, potentially affecting the company's annual operating performance and financial condition[82]. Governance and Compliance - The audit report for the company was issued with a standard unqualified opinion by the accounting firm Zhongshen Zhonghuan[4]. - The company is committed to providing differentiated marketing solutions and exploring diversified products to meet market demands[78]. - The company has established measures to prevent insider trading and protect shareholder interests during the restructuring[98]. - The company has confirmed that there are no criminal investigations or regulatory inquiries against its executives[90]. - The company has committed to timely disclosure and approval procedures for related party transactions, which include advertising resource procurement[109]. - The company has established a principle of fair and transparent decision-making for unavoidable related party transactions[91]. Shareholder Information - The largest shareholder, Duan Peizhang, holds 30,694,300 shares, representing 32.89% of the total shares, with 20,350,000 shares pledged[154]. - The second largest shareholder, Fang Xiaoqin, holds 9,492,000 shares, accounting for 10.17% of the total shares[154]. - The total number of shares held by the top ten unrestricted shareholders is 30,694,300 shares for Duan Peizhang, 9,492,000 shares for Fang Xiaoqin, and 3,906,000 shares for Duan Zhirui[155]. - The company has a total of 10 shareholders with over 1% ownership, including Duan Peizhang, Fang Xiaoqin, and others[155]. Employee and Management - The company employed a total of 209 staff members, with 182 in the parent company and 27 in major subsidiaries[170]. - The educational background of employees includes 32 with master's degrees, 113 with bachelor's degrees, 60 with associate degrees, and 4 with high school or lower education[170]. - The company’s compensation policy links employee remuneration to company performance and individual achievements, ensuring a fair and transparent system[171]. - The company has established a training and team interaction learning system to enhance industry knowledge and trends among employees[172]. Audit and Financial Reporting - The audit report confirms that the financial statements fairly present the financial position and operating results of Longyun Media for the year ended December 31, 2019[190]. - The audit procedures included evaluating the effectiveness of internal controls related to revenue recognition and verifying the authenticity of transactions through customer confirmations[191]. - The financial statements were prepared in accordance with the applicable accounting standards, reflecting the company's financial condition accurately[190]. - The internal control evaluation report for 2019 was approved, indicating effective financial reporting controls were maintained[183].