BJCT(SZ:000802)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was ¥425,779,609.11, a decrease of 50.22% compared to ¥855,335,357.54 in 2019[21]. - The net profit attributable to shareholders for 2020 was -¥767,373,478.71, an improvement of 66.72% from -¥2,305,834,809.46 in 2019[22]. - The net cash flow from operating activities was ¥18,481,529.33, a significant increase of 103.50% compared to -¥528,199,247.16 in 2019[21]. - The total assets at the end of 2020 were ¥4,539,096,381.47, a slight decrease of 0.83% from ¥4,577,226,290.13 at the end of 2019[22]. - The net assets attributable to shareholders decreased by 31.48% to ¥1,712,944,410.29 at the end of 2020 from ¥2,499,863,271.97 at the end of 2019[22]. - The basic and diluted earnings per share for 2020 were both -¥1.0719, showing a 66.72% improvement from -¥3.2209 in 2019[22]. - The company reported a total of ¥22,969,195.86 in non-recurring gains and losses for 2020, compared to -¥23,985,472.81 in 2019[26]. - The company reported a net loss of approximately 767.37 million yuan for 2020, with a net profit margin of 0.00%[86]. Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the year[9]. - The company did not distribute profits for the years 2019 and 2020 due to negative retained earnings and significant financial pressure, aiming to maintain stable development[84][86]. - The company has maintained a consistent policy of not distributing dividends in the last three years due to financial constraints[84][85]. - The company’s cash dividend policy is compliant with its articles of association and shareholder resolutions, ensuring transparency and protection of minority shareholders' rights[84]. Strategic Transformation - The company has undergone a transformation from tourism to a full-spectrum cultural group, focusing on film, television, and new media[20]. - The company plans to focus on film business development and explore tourism culture integration through the construction of the Miyun Oriental Mountain Water International Film and Tourism Town project[29]. - The company aims to enhance its investment, production, marketing, and distribution capabilities in the film industry while leveraging big data and internet marketing[29]. - The company is currently undergoing a strategic transformation towards the film and cultural industry, necessitating funding to support new profit growth points[66]. Risk Management - The company faced major internal control deficiencies, as highlighted in the internal control self-assessment report[6]. - The company is exposed to various risks, including regulatory policy risks and market competition, which could affect its future performance[8]. - The company’s management emphasized the importance of risk awareness among investors regarding future plans and forecasts[8]. - The company acknowledges potential disruptions to operations due to public health emergencies, although it maintains long-term profitability[78]. - The company is actively managing production costs to mitigate the impact of rising expenses associated with high-quality content creation[78]. Market and Industry Context - In 2020, the company achieved total revenue of 425.78 million yuan, a year-on-year decrease of 50.22% due to the impact of the COVID-19 pandemic and the high box office revenue from the previous year's film "The Wandering Earth"[36]. - The film "My People, My Homeland" grossed over 2.8 billion yuan, making it the second highest-grossing film globally in 2020[36]. - In 2020, China's total box office reached 20.417 billion yuan, making it the world's largest film market, with domestic films accounting for 83.72% of the total at 17.093 billion yuan[71]. - The number of cinema-goers in urban theaters was 548 million, with a total of 75,581 screens nationwide after adding 5,794 new screens[71]. Corporate Governance - The company has committed to ensuring that its operations do not harm the interests of its shareholders, particularly minority investors, during related party transactions[89]. - The company has ongoing commitments to avoid conflicts of interest and ensure independent operations following acquisitions[89]. - The company operates independently from its largest shareholder, with no business, personnel, or financial dependencies, ensuring complete operational autonomy[200]. - The governance structure aligns with the requirements set forth by the China Securities Regulatory Commission, with no significant discrepancies[199]. Management and Leadership - The company experienced a leadership transition with multiple appointments and resignations among senior management throughout 2020[178]. - The company appointed Yan Xuefeng as the new President on December 23, 2020, following the adjustment of Song Ge's position[178]. - The company experienced a change in financial leadership, with Zhang Xue appointed as the new CFO on December 23, 2020, after the departure of Jia Yuanbo[178]. - The company has a total of 6 independent directors, with no changes in their shareholdings during the reporting period, with all maintaining zero shares[175]. Investment and Acquisitions - The company acquired 100% equity of Beijing Dongfang Shanshui Resort for CNY 84 million, aiming to develop a comprehensive cultural tourism project in Beijing[146]. - The company has paid CNY 600 million of the transaction price for the acquisition of Dongfang Shanshui, with project design plans underway despite delays due to the pandemic[148]. - The company has decided to transfer 100% equity of its subsidiary Century Partners for CNY 48 million to mitigate losses from significant impairment of goodwill and assets[149]. Financial Reporting and Audit - The company’s independent auditor issued a qualified opinion on the financial statements due to significant uncertainties[6]. - The company received a qualified audit opinion from Suya Jin Cheng Accounting Firm, which highlighted risks related to the disposal of a subsidiary and ongoing investigations into fund misappropriation[94][95]. - The company reported a significant adjustment in its financial statements due to the implementation of the new revenue recognition standards, resulting in a decrease of ¥117,239,097.36 in advance receipts and an increase in contract liabilities[98]. Employee and Talent Management - The company employed a total of 80 staff members, including 62 in the parent company and 18 in major subsidiaries[192]. - The company implemented measures such as reducing staff and adjusting salaries to cope with the impact of the pandemic in 2020[193]. - The company plans to attract and motivate talent while controlling labor costs as the film industry gradually recovers in 2021[193]. - The company shifted its training methods from traditional offline to online formats due to the pandemic, with plans to gradually resume offline training[194].