WANDA FILM(SZ:002739)2021-04-28 16:00Business Expansion and Operations - Wanda Film reported a significant expansion in its business scope, moving from primarily cinema operations to include film investment, production, distribution, and related derivative businesses, covering the entire industry chain [20]. - Wanda Film's main business during the reporting period included cinema investment and construction, film investment, production, distribution, and related derivative businesses, as well as TV series production and distribution, and game distribution [20]. - The company has not experienced any changes in its controlling shareholder during the reporting period [20]. - The company has not made any significant asset restructuring changes since May 2019, maintaining its focus on the film industry [20]. - The company launched new online media business initiatives, including short video advertising and live streaming sales [31]. - The company continues to hold the leading position in the domestic cinema market, maintaining the highest box office and audience attendance for twelve consecutive years [31]. - The company operates 370 IMAX screens and 47 Dolby cinemas, the highest number in the country [44]. - In 2020, 5,794 new screens were added, resulting in an 8.3% year-on-year increase in total screens [48]. - The company has established a strong partnership with commercial real estate developers to support nationwide expansion [41]. - The company has implemented a standardized investment construction model to ensure consistent quality across cinema projects [41]. Financial Performance - The company's operating revenue for 2020 was ¥6,295,481,617.12, a decrease of 59.21% compared to ¥15,435,362,985.83 in 2019 [22]. - The net profit attributable to shareholders for 2020 was -¥6,668,695,499.15, representing a decline of 41.03% from -¥4,728,585,957.39 in 2019 [22]. - The net cash flow from operating activities was ¥482,122,394.75, down 74.06% from ¥1,858,832,299.51 in the previous year [22]. - The total assets at the end of 2020 were ¥23,476,060,766.72, a decrease of 11.37% from ¥26,488,081,327.87 at the end of 2019 [22]. - The company reported a basic earnings per share of -¥3.1589 for 2020, a decrease of 38.85% from -¥2.2751 in 2019 [22]. - The company reported a total of 21,473,239.68 CNY in restricted cash due to usage limitations and judicial freezes [100]. - The company reported a significant cash flow discrepancy due to goodwill impairment and long-term asset impairment preparations [92]. - The company reported a total of 317 subsidiaries included in the consolidated financial statements for 2020, with 1 new subsidiary acquired and 13 newly established [158]. Market Trends and Challenges - The total box office for 2020 was 18.605 billion yuan, a year-on-year decrease of 68.69% [46]. - The number of moviegoers in 2020 was 549 million, down 68.27% year-on-year [46]. - Domestic films accounted for 83.7% of the total box office, with a record high in 2020 [49]. - The company acknowledges risks related to potential film supply shortages and the impact of the ongoing pandemic on operations [132]. - The competitive landscape is intensifying, with an increase in cinema numbers and new entrants, necessitating effective market strategies [135]. - The pandemic significantly impacted the film industry in 2020, causing delays in the release of major films and a substantial decline in revenue from film production and distribution [151]. Strategic Initiatives and Future Plans - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the reporting period [7]. - The company’s future plans and development strategies are subject to various risk factors, which have been disclosed in the annual report [6]. - In 2021, Wanda Film plans to release several films, including "The Underwater Squad" and "Detective Chinatown 3," with expectations of significant box office performance [63]. - The company plans to continue investing in big data-based systems to enhance operational efficiency and reduce costs [86]. - The company aims to strengthen its market share through strategic partnerships and innovative marketing, leveraging its new media matrix [124]. - The company intends to create a series of high-quality films and TV shows, emphasizing brand and series development [128]. - The company will implement refined management practices to control operational costs and enhance efficiency in response to post-pandemic uncertainties [126]. Social Responsibility and Community Engagement - The company actively participated in social responsibility initiatives during the pandemic, focusing on low-carbon and energy-saving efforts while balancing the interests of stakeholders [185]. - The company donated approximately 4.53 million yuan to support pandemic relief efforts, including 1.6 million yuan from the film crew of "Detective Chinatown 3" to Wuhan Charity Association [186]. - The company organized multiple charity screening events, with over 90 cinemas participating and more than 50,000 attendees, including free screenings for medical staff and students [187]. - The company has maintained a focus on sustainable development and social responsibility, emphasizing stakeholder cooperation and community engagement [185]. Governance and Compliance - The financial report for the year 2020 was confirmed to be true, accurate, and complete by the company's management, including the chairman and accounting supervisor [5]. - The company has engaged Da Xin Accounting Firm for auditing services during the reporting period [21]. - The company has made commitments to avoid and minimize related party transactions, ensuring compliance with legal requirements [149]. - The company has established a profit distribution policy and has made commitments regarding dividend distribution [149]. - The company has not reported any related party debts or other significant related party transactions during the reporting period [169].