GIMC(SZ:002400)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was ¥13,291,267,668.33, representing a 15.22% increase compared to ¥11,535,693,013.64 in 2019[21] - The net profit attributable to shareholders for 2020 was -¥932,266,939.80, a significant decline of 723.64% from ¥149,487,578.92 in 2019[21] - The net cash flow from operating activities decreased by 31.60% to ¥372,687,841.91 in 2020 from ¥544,841,376.04 in 2019[21] - The total assets at the end of 2020 were ¥8,134,722,153.89, down 7.14% from ¥8,760,427,109.27 at the end of 2019[21] - The net assets attributable to shareholders decreased by 17.81% to ¥4,420,919,099.55 at the end of 2020 from ¥5,378,965,382.46 at the end of 2019[21] - The basic earnings per share for 2020 was -¥0.530, a decrease of 688.89% compared to ¥0.090 in 2019[21] - The weighted average return on net assets was -19.05% in 2020, a decrease of 21.88% from 2.83% in 2019[21] - The company reported a significant increase in the net profit attributable to shareholders after deducting non-recurring gains and losses, which was -¥968,983,155.69 in 2020 compared to ¥98,171,081.84 in 2019, marking a decline of 1,087.04%[21] - The company’s operating profit for 2020 was reported at CNY -0.881 billion, indicating challenges in profitability amidst strategic transitions[43] Revenue Breakdown - Digital marketing revenue was ¥9,357,708,369.91, accounting for 53.54% of total revenue, with a year-on-year growth of 51.52%[51] - Advertising industry revenue was ¥13,284,449,286.38, representing 99.92% of total revenue, with a growth of 15.26%[51] - Revenue from the Eastern China region surged by 71.24% to ¥2,586,451,118.68, compared to ¥1,510,413,346.08 in the previous year[51] - The company experienced a significant decline in public relations activities revenue, which fell by 49.40% to ¥232,030,644.96[51] - The company reported a 30.64% decline in revenue from other industries, totaling ¥6,818,381.95[51] Cash Flow and Assets - The company's net cash flow from operating activities showed significant fluctuations, with a net cash flow of CNY 491.29 million in Q4 2020, following a negative cash flow in Q1 and Q3[26] - The company reported an asset impairment of ¥1,143,767,654.02, primarily due to long-term equity investment impairment and goodwill impairment[72] - The fair value of investment properties decreased by 1.05% from CNY 264,219,603.60 to CNY 261,527,461.56 during the reporting period[78] - The total amount of raised funds in 2016 was CNY 220,247.11 million, with CNY 10,818.26 million utilized during the reporting period[85] Strategic Initiatives - The G-IN platform was launched in September 2020, marking the company's full transition to a platform-based model, integrating over 20,000 influencers from more than 200 MCN institutions[45] - The company aims to enhance its digital marketing capabilities by integrating marketing resources across different sectors, transitioning from traditional marketing services to digital marketing assistance[46] - The company plans to continue its transformation and upgrade around the industrial internet, focusing on resource integration and platform operation capabilities[108] - The company aims to create an S2B2C industrial integration ecological platform, innovating three major business models: B2C, B2B2C, and B2B[109] Risks and Challenges - The company acknowledges risks including industry competition, talent loss, and asset impairment, urging investors to be cautious[5] - The company faces risks including industry competition, talent loss, and asset impairment due to the nature of the advertising industry[110] Shareholder and Dividend Information - The company plans not to distribute cash dividends or issue bonus shares for the year[5] - The company reported a net profit attributable to ordinary shareholders of RMB -932,266,939.80 for the year 2020, resulting in a cash dividend payout ratio of 0.00%[121] - The company did not propose any cash dividend distribution or capital reserve transfer to increase share capital for the year 2020[120] - The profit distribution plan for 2020 indicates no cash dividends will be distributed, nor will there be any stock dividends or capital reserve transfers[122] Subsidiaries and Acquisitions - The company disposed of its subsidiary Jiangxi Hezhong Guanghua International Media Advertising Co., Ltd. for ¥10,200,000, losing 100% control[59] - The company established several new subsidiaries in 2020, including Shanghai Yinxin Information Technology Co., Ltd. with a 100% ownership[59] - The company has disposed of Guangdong Guangfo Metro Advertising Resource Management Co., Ltd. through business cancellation, which did not significantly impact overall operations[107] Compliance and Governance - The company has emphasized the importance of adhering to legal and regulatory requirements in its related party transactions[131] - The company has committed to transparency and fairness in its operations, particularly regarding related party transactions and shareholder rights[131] - The company has not reported any non-operating fund occupation by its controlling shareholder or related parties during the reporting period[138] - The company’s board of directors has confirmed that there are no non-standard audit reports for the reporting period[138] Employee and Management Information - The number of R&D personnel decreased by 23.21% to 688 from 896 in 2019[67] - The company did not implement any employee stock ownership plans or other incentive measures during the reporting period[158] Related Party Transactions - The company reported a total of 125,084.11 thousand yuan in related party transactions, accounting for 68.36% of similar transaction amounts[159] - The company engaged in advertising services with a related party, with a transaction amount of 102,031.7 thousand yuan, which did not exceed the approved limit of 115,000 thousand yuan[159]