HBMC(SZ:300027)2022-04-27 16:00Financial Performance - The total operating revenue for Huayi Brothers in 2021 was CNY 1,399,063,818.60, a decrease of 6.73% compared to the previous year[28]. - The net profit attributable to shareholders of the listed company was CNY -246,243,415.16, an increase of 76.50% year-on-year[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY -1,073,079,766.83, a decrease of 5.37% compared to the previous year[28]. - The net cash flow from operating activities was CNY 234,412,233.59, down 4.86% from the previous year[28]. - The total assets at the end of 2021 were CNY 7,094,224,006.07, a decrease of 26.12% from the end of 2020[28]. - The net assets attributable to shareholders at the end of 2021 were CNY 2,331,064,414.50, a decrease of 24.13% from the end of 2020[28]. - The basic earnings per share for 2021 was CNY -0.09, an improvement of 76.32% compared to CNY -0.38 in 2020[28]. - The weighted average return on net assets was -8.36%, an increase of 19.01 percentage points from -27.37% in 2020[28]. - The company did not distribute cash dividends or bonus shares for the year 2021[10]. Impact of COVID-19 - The main reason for the loss was the ongoing impact of the COVID-19 pandemic on the film and tourism industry, affecting project production and distribution[11]. - The total box office revenue in China for 2021 reached ¥47.26 billion, recovering to 74% of pre-pandemic levels, with domestic films accounting for 84.49% of the total[43]. Business Strategy and Development - The company continues to focus on a "film + real scene" light asset business model, aiming to enhance its core competitiveness in the film industry[44]. - The company plans to optimize its asset structure and consolidate resources to strengthen its main business capabilities[45]. - The company aims to achieve a total of over 100,000 screens by 2025 as part of the national film development plan[44]. - The company is focusing on expanding its digital content offerings to capture a larger audience[71]. - The company is actively pursuing global strategic partnerships, including collaborations with top Hollywood directors to invest in and produce global IP projects[54]. - The company has a forward-looking strategy that aims to expand its influence in international markets while promoting Chinese cultural confidence[54]. - The company continues to innovate in content creation and distribution, leveraging its extensive experience in international cooperation to enhance its competitive edge[54]. Content Production and Partnerships - The company has produced or co-produced several high-quality films and series, including "Hello, Li Huanying" and "The Yinyang Master," indicating a strong content production capability[48]. - The company has built a team of outstanding talents in the film industry, collaborating closely with renowned directors and supporting emerging filmmakers to ensure a pipeline of new talent[51]. - The company has formed stable partnerships with major industry players such as Alibaba, Tencent, and Fosun, which provide a strong backing for breaking industry boundaries[52]. - The company has established partnerships with various upstream and downstream enterprises in the entertainment industry, enhancing the production and development of quality content[54]. Financial Investments and Acquisitions - The company has completed the acquisition of a local production company, which is projected to increase overall production capacity by 20%[78]. - The company is exploring potential acquisitions in the film production sector to diversify its content portfolio and enhance competitive advantage[83]. - The company is exploring potential mergers and acquisitions to enhance its content library and distribution capabilities[89]. Market Expansion and Revenue Growth - Huayi Brothers plans to expand its market presence in Southeast Asia, targeting a 30% growth in that region by 2023[78]. - The company has set a performance guidance of 1.5 billion RMB in revenue for 2022, reflecting a 25% growth target[78]. - The company expects a revenue guidance of RMB 4 billion for 2022, reflecting a growth target of 14%[83]. Operational Efficiency and Cost Management - Huayi Brothers has implemented cost-cutting measures that are expected to reduce operational expenses by 10% in 2022[83]. - The company is investing RMB 200 million in new technology for enhanced cinema experiences, including 4D and IMAX formats[89]. Audience Engagement and Cinema Operations - User engagement metrics showed a 25% increase in viewership for their digital content platforms compared to 2020[78]. - The total audience attendance for the year 2021 was 5.8972 million, representing an increase of 82.6% year-on-year[198]. - The revenue from the cinema distribution and screening business for the year 2021 was 223.7429 million yuan, an increase of 102.5% compared to the previous year[198]. Intellectual Property and Licensing - The company owns over 600 registered trademarks, emphasizing its commitment to intellectual property protection[55]. - The company has acquired copyright registrations for several major films, including "The Eight Hundred" and "Hi, Mom," which are significant assets in its portfolio[56]. - The company has secured additional copyright registrations for various new projects, strengthening its intellectual property portfolio[68]. Awards and Recognition - The film "The Eight Hundred" won the "Weibo Annual Movie" award at the 2020 Weibo Night, showcasing the company's successful content production[98]. - The company received the "2020 Annual Production Enterprise" award at the 11th Beijing International Film Festival, highlighting its industry recognition[98]. - The company has been recognized as a "Meritorious Film Enterprise" at the 2021 Hengdian Film Festival, reflecting its contributions to the industry[98].