OBM(SH:603729)2021-05-06 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] - 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 net assets attributable to shareholders of the listed company decreased by 2.46% to 786,358,052.95 RMB at the end of 2020[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 weighted average return on equity improved by 4.31 percentage points year-on-year, but decreased by 5.38 percentage points compared to 2018[25] - Cash flow from operating activities showed a net outflow, primarily due to extended customer credit periods and increased working capital requirements[24] Business Operations - The company’s main business includes comprehensive advertising services and media agency services, focusing on integrated marketing solutions[33] - 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 is focusing on long-term partnerships with high-quality clients in its full-service business, aiming to enhance service quality and profitability[47] - The company plans to enhance its marketing efficiency by deepening its industry chain layout and leveraging strategic resources such as talent and data[71] Market Conditions - The advertising industry experienced significant declines in 2020, with marketing expenses showing negative growth for the first time due to decreased confidence among advertisers[33] - 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 market experienced a 19% year-on-year decline in the first half of 2020 due to the pandemic, but showed signs of recovery in the second half[67] - The impact of the COVID-19 pandemic has led to a decline in advertising demand, with market competition intensifying as the industry recovers[73] Financial Management - The company decided not to distribute profits or increase capital reserves for the year due to future development planning and cash flow considerations[5] - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7] - The company has provided a risk statement indicating that forward-looking statements may be subject to significant differences from actual results due to various uncertainties[6] - The company’s financial report has been audited and received a standard unqualified opinion from the auditing firm[4] - The company reported a significant increase in financial expenses, rising by 1,052.88% to CNY 10,003,737.46[43] - The company has established a cash compensation mechanism for performance shortfalls, ensuring accountability from the commitment parties[84] Shareholder Information - The company has not distributed cash dividends for 2020, maintaining a policy of no cash dividends, stock bonuses, or capital reserve transfers[76] - The company has not made any cash profit distribution plans for common stock shareholders despite having positive distributable profits[80] - The total number of ordinary shareholders at the end of the reporting period was 9,278, an increase from 9,143 at the end of the previous month[106] - The largest shareholder, Duan Peizhang, held 23,094,300 shares, representing 24.74% of the total shares, with a decrease of 7,600,000 shares during the reporting period[108] Internal Controls and Governance - The company’s independent directors have extensive experience in academia and industry, enhancing governance and oversight capabilities[120] - The company has implemented a comprehensive internal control evaluation report, which was approved by the board of directors[140] - The internal control audit report issued by Zhongshui Yatai CPA indicated significant deficiencies in internal controls related to related party transactions, including employee compensation and office expenses[140] - The company has not faced any penalties from securities regulatory authorities in the past three years[125] Future Outlook - The company expects the total value of the advertising market to reach ¥1 trillion in 2021, indicating a strong recovery[68] - In 2021, China's digital marketing is expected to grow by 20%, up from a 16% growth rate in 2020, indicating strong recovery in overall marketing spending[70] - The company plans to expand its market presence and explore potential mergers and acquisitions to drive future growth[165] - The company aims to provide personalized marketing services by integrating resources across the entire industry chain, enhancing its competitive edge[70]