H&R(SZ:000892)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was ¥387,819,385.11, representing a 109.71% increase compared to ¥184,935,603.34 in 2020[19]. - The net profit attributable to shareholders for 2021 was -¥333,682,036.56, an improvement of 57.48% from -¥784,855,283.01 in 2020[19]. - The net cash flow from operating activities for 2021 was -¥273,378,506.77, a significant decline of 198.87% compared to ¥276,500,167.82 in 2020[19]. - The total assets at the end of 2021 were ¥2,377,434,371.93, a decrease of 10.12% from ¥2,645,212,770.21 at the end of 2020[19]. - The company's basic earnings per share for 2021 was -¥0.34, improving by 57.50% from -¥0.80 in 2020[19]. - The weighted average return on equity for 2021 was -19.64%, an improvement of 15.07% from -34.71% in 2020[19]. - The company reported a negative operating revenue of -¥72,603,420.29 in Q4 2021 due to income reversals from project confirmations[24]. - The total net profit attributable to shareholders in Q4 2021 was -¥393,518,747.37, following a profit of ¥48,485,910.39 in Q3 2021[24]. - The company achieved operating revenue of ¥387,819,385.11, an increase of 109.71% compared to the same period last year[33]. - Revenue from film and television sales increased by 323.35% year-on-year, with a higher number of series confirmed for revenue recognition[33]. - The net loss attributable to shareholders decreased significantly to ¥333,682,036.56, compared to the previous year's loss[33]. - Revenue from film and television and related products reached ¥267,736,528.98, accounting for 69.04% of total revenue, with a significant growth of 205.21% from ¥87,722,643.96 in the previous year[52]. - The artist management segment generated ¥106,779,070.13, which is 27.53% of total revenue, showing a modest increase of 9.84% from ¥97,212,959.38 in 2020[52]. - The domestic revenue accounted for 99.30% of total revenue at ¥385,118,343.35, reflecting a 150.87% increase from ¥153,512,848.06 in 2020[52]. - The overseas revenue dropped significantly by 91.40% to ¥2,701,041.76 from ¥31,422,755.28 in the previous year[52]. - The company reported a negative distributable profit of -608,581,060.81 CNY, leading to no cash dividend distribution for the year[141]. - The total amount of cash dividends, including share repurchase, was 33,995,635 CNY, which represents -10.19% of the net profit attributable to the parent company[141]. Business Transformation and Strategy - The company has undergone significant business transformations, shifting from automotive parts manufacturing to film production and distribution since 2016[16]. - The company is focusing on content production and artist management, exploring new business directions in AI virtual artists, new media, e-commerce, and cultural tourism[33]. - The company is actively developing diverse content themes, including reality-based, youth spy warfare, and fantasy adventure genres, to enhance IP potential and brand strength[34]. - The company is committed to producing high-quality films and series that align with the mainstream values of the socialist era, enhancing its social responsibility[34]. - The company is exploring a full industry chain development model in the artist management sector, adapting to the rapid growth of new media and internet star-making[32]. - The company plans to produce high-quality dramas that reflect mainstream socialist values, with upcoming titles including "South Wind Knows My Intent" and "Ten Years One Product Warm as Words" scheduled for release in 2022[96]. - The company intends to optimize its financial structure and improve cash flow by increasing the proportion of project pre-sales and enhancing accounts receivable collection[98]. - The company will explore new consumption and media opportunities, including AI virtual artists and e-commerce, to enhance its risk resistance and operational strength[98]. Governance and Management - The actual controller of the company changed from Zhong Junyan and Chen Yuan to Zhao Zhicheng on August 17, 2021[17]. - The company has established a robust governance structure, ensuring compliance with relevant laws and regulations[107]. - The company has a diverse management team with backgrounds in law, finance, and auditing[120]. - The company continues to expand its management capabilities with experienced professionals in key positions[120]. - The total remuneration for directors, supervisors, and senior management in 2021 amounted to 1,074.44 million CNY[125]. - The company has implemented a performance-based remuneration system for its executives[125]. - The board of directors held five meetings during the reporting period, approving 23 resolutions[108]. - The independent directors actively participated in discussions and provided independent opinions on key matters such as profit distribution and related transactions[129]. - The company reported that the financial statements accurately reflect its operational results and governance level[130]. - The audit committee unanimously agreed on the financial report and internal control audit plan for the year 2020[130]. - The company confirmed that there were no violations in the use of raised funds during the reporting period[130]. Legal and Compliance Issues - The company is currently involved in multiple lawsuits, with a total of CNY 14.748 million in liabilities confirmed for the year 2020[173]. - The company has confirmed expected liabilities of 14.61 million yuan in 2020 and 11.87 million yuan in 2021 related to litigation[101]. - A total of 257 plaintiffs have filed lawsuits against the company for alleged false statements, with a total claim amount of 43.17 million yuan as of December 31, 2021[101]. - The company is actively managing its legal risks and liabilities, with ongoing updates on litigation and arbitration statuses disclosed regularly[173]. - The company faced disciplinary actions due to false records in restructuring documents and inadequate disclosure of related party fund occupation[177]. - The company has reported a warning and a fine of 1 million CNY for current director Zhong Jun Yan due to violations of the Securities Law[123]. - Current director Zhao Zhi Cheng was fined 80,000 CNY for similar violations[123]. Investment and Financial Management - The company has established measures to eliminate discrepancies between actual profits and performance commitments[157]. - The company is currently in the process of addressing uncertainties related to performance commitments from 2016 to 2018, aiming to confirm the completion of these commitments once uncertainties are resolved[157]. - The company has not engaged in any significant related party transactions during the reporting period[178]. - The company has no significant asset or equity acquisitions or sales during the reporting period[179]. - The company has no major contracts or leasing situations reported for the year[185]. - The company has no related party debt transactions during the reporting period[181]. - The company has no significant guarantees or collateral arrangements with related parties[182]. - The total amount of guarantees approved during the reporting period is 22,200 million, with an actual guarantee balance of 22,200 million, representing 14.80% of the company's net assets[190]. - The company signed a major contract with Alibaba (Beijing) Software Service Co., Ltd. for a film project worth 594 million, with 280.2 million received as of December 31, 2021[193]. - Another major contract was signed with Hainan iQIYI Information Technology Co., Ltd. for a film project valued at 600 million, currently in preparation[194]. Employee and Operational Insights - The total number of employees at the end of the reporting period is 177, with 111 in production, 28 in technology, 16 in finance, 15 in administration, and 7 in sales[135]. - The company has no retired employees requiring expense coverage, indicating a fully active workforce[135]. - The company emphasizes employee training and development, particularly for core team members, to enhance their skills and management capabilities[137]. - The company has implemented a performance assessment mechanism to ensure fair treatment and competitive compensation for all employees[136]. Environmental and Social Responsibility - The company is not classified as a key pollutant discharge unit by the environmental protection department[150]. - No administrative penalties were imposed on the company or its subsidiaries during the reporting period due to environmental issues[150]. - The company has not engaged in targeted poverty alleviation efforts during the reporting period[152].