OBM(SH:603729)2021-04-29 16:00Financial Performance - The net profit attributable to shareholders of the listed company for 2020 was -21,630,952.00 RMB, an improvement from -58,738,833.01 RMB in 2019[5]. - Total operating revenue for 2020 was 621,431,825.20 RMB, a decrease of 3.34% compared to 642,922,500.70 RMB in 2019[22]. - The net cash flow from operating activities was -29,063,188.53 RMB, a significant decline of 118.05% from 161,024,671.25 RMB in 2019[22]. - The company reported a significant reduction in net profit compared to the previous year, indicating ongoing financial challenges[22]. - Basic earnings per share for 2020 was -0.23 CNY, an increase of 63.49% compared to the previous year, but a decrease of 192.00% compared to 2018[23]. - Net profit attributable to shareholders increased by 63.17% year-on-year, but decreased by 194.54% compared to 2018, primarily due to increased impairment provisions[24]. - Operating revenue for 2020 decreased by 3.34% year-on-year and by 47.99% compared to 2018, mainly impacted by the pandemic[23]. - The company reported a net loss of 27,538,999.89 CNY in Q4 2020, following a net profit of 4,173,045.71 CNY in Q1[27]. - The company achieved a net profit of RMB 18.16 million for the year 2020, with a net profit of RMB 16.89 million after excluding non-recurring gains and losses, failing to meet the performance commitment of RMB 80 million for the year[84]. - Cumulative net profit from 2019 to 2020 was RMB 145.57 million, which is below the cumulative performance commitment of RMB 160 million, necessitating cash compensation from the commitment parties[85]. Assets and Liabilities - Total assets at the end of 2020 were 1,048,522,254.83 RMB, down 7.60% from 1,134,718,790.23 RMB in 2019[22]. - The total liabilities decreased from CNY 326,069,853.08 in 2019 to CNY 260,714,181.54 in 2020, reflecting a reduction of about 20%[159][160]. - The total equity attributable to shareholders decreased from CNY 806,201,926.95 in 2019 to CNY 786,358,052.95 in 2020, a decline of approximately 2.1%[160]. - Cash and cash equivalents increased significantly from CNY 25,626,906.94 in 2019 to CNY 117,177,170.73 in 2020, marking an increase of about 357%[158]. - The company's total liabilities decreased to CNY 259,832,350.08 from CNY 339,919,119.42 in 2019, reflecting a reduction of approximately 23.6%[164]. - The total equity increased to CNY 916,620,946.53 from CNY 847,135,942.43, representing an increase of about 8.2%[164]. Revenue and Expenses - The company's operating costs were CNY 544,045,136.39, down 7.85% year-on-year[41]. - Total revenue for the reporting period was RMB 621,431,825.20, a decrease of 3.34% year-on-year, while total cost was RMB 544,045,136.39, down 7.85% year-on-year, resulting in a gross margin increase of 4.28 percentage points to 12.45%[47]. - Advertising revenue decreased by 5.45% to RMB 598,733,328.08, with a gross margin increase of 3.67 percentage points to 11.20%[46]. - The liquor sales segment experienced significant growth, with revenue increasing by 134.67% to RMB 22,698,497.12, although the gross margin decreased by 4.75 percentage points to 45.60%[47]. - The company's media agency revenue fell by 8.66% to RMB 112,348,119.85, with a gross margin increase of 8.81 percentage points to 12.69%[46]. - The overall sales expenses increased by 9.80%, attributed to the expansion of content marketing and liquor sales[52]. Strategic Initiatives - The company established new subsidiaries, including Longyun Liquor Industry and Huodu Industry, to diversify its business and seek new profit growth points[40]. - The company focused on enhancing customer service and expanding its industry chain to improve core competitiveness and risk resistance[34]. - The company aims to provide comprehensive marketing services by integrating upstream and downstream industry chains[39]. - The company plans to enhance its talent acquisition and training programs to improve management and operational efficiency, aiming to maximize human resource potential[71]. - The company will deepen its integration within the industry chain to enhance marketing efficiency and profitability, focusing on high-quality content and data-driven advertising strategies[71]. Compliance and Governance - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[7]. - There were no violations of decision-making procedures regarding external guarantees[8]. - The company has committed to not reducing its shareholding in the company by more than 5% within two years after the lock-up period expires[82]. - The company has established a cash compensation mechanism for performance shortfalls, ensuring accountability from the commitment parties[84]. - The company has maintained a good integrity status for itself and its controlling shareholders during the reporting period[92]. - The company has not reported any significant deficiencies in internal controls during the reporting period[142]. Market Trends - The advertising market in China saw a year-on-year decline of 11.6% in 2020 due to the pandemic, impacting overall advertising spending[34]. - The advertising industry is witnessing a trend towards content-driven marketing, with a significant focus on online media and KOL marketing strategies[69]. - The impact of the COVID-19 pandemic has led to a decline in advertising demand, but as the situation improves, the company anticipates increased competition from leading firms in the industry[73]. - The company expects the total value of the advertising market to reach ¥1 trillion in 2021, indicating a strong recovery trend[68]. Human Resources - The company employed a total of 208 staff, with 185 in the parent company and 23 in major subsidiaries[126]. - The educational background of employees includes 44 with master's degrees, 114 with bachelor's degrees, 43 with associate degrees, and 7 with high school or lower education[126]. - The company has established a training and team interaction learning system to enhance industry knowledge and skills among employees[128]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 3.27 million yuan[123]. Audit and Financial Reporting - The company received a standard unqualified opinion from the auditor regarding its financial statements, indicating no significant issues were found[145]. - The internal control audit report issued by Zhongshui Yatai Accounting Firm confirmed that the company maintained effective financial reporting internal controls as of December 31, 2020[142]. - The company appointed Zhongshen Yapat Accounting Firm as the financial and internal control audit institution for the 2020 fiscal year, with audit fees amounting to RMB 500,000 and internal control audit fees of RMB 300,000[91].