Rastar(SZ:300043)2022-04-27 16:00Financial Performance - In 2021, the company's sports business revenue and net profit significantly declined due to the dual impact of the COVID-19 pandemic and the relegation of the Espanyol football club[6]. - Overall net profit decreased compared to the previous year, but the company's core competitiveness and main business did not experience significant adverse changes[6]. - The company's operating revenue for 2021 was ¥1,406,891,138.77, a decrease of 19.28% compared to ¥1,742,854,011.17 in 2020[30]. - The net profit attributable to shareholders was -¥662,605,082.00, representing a decline of 2,647.11% from a profit of ¥26,013,979.26 in 2020[30]. - The net cash flow from operating activities was ¥100,008,315.94, down 84.65% from ¥651,538,788.84 in the previous year[30]. - The total assets at the end of 2021 were ¥4,504,554,947.25, a decrease of 15.96% from ¥5,360,084,427.62 at the end of 2020[30]. - The company's basic and diluted earnings per share were both -¥0.53, a drop of 2,750.00% from ¥0.02 in 2020[30]. - The weighted average return on equity was -25.49%, down 26.37% from 0.88% in 2020[30]. - The company achieved total revenue of 1.407 billion yuan in 2021, a decrease of 19.28% year-on-year, and a net profit attributable to shareholders of -663 million yuan, a decline of 6.89 million yuan compared to the previous year[57]. Business Segments - The gaming business generated main operating revenue of 606 million yuan, down 6.48% year-on-year, accounting for 43.10% of total revenue, with a net profit of 48.35 million yuan, a decrease of 70.50%[57]. - The football club business reported main operating revenue of 363 million yuan, a decrease of 47.95%, and a net profit of -320 million yuan, with broadcast rights income dropping by 47.84% to 258 million yuan[62]. - The toy and derivative products business achieved main operating revenue of 348 million yuan, an increase of 18.78%, and a net profit of 35.39 million yuan, up 415.95%[64]. - The company’s overseas gaming revenue reached 958 million yuan, accounting for 55.97% of total gaming revenue, with significant titles achieving high monthly revenues[58]. - The company has developed a diverse toy product line with over 400 high-quality toys sold in 120 countries and regions, maintaining a leading position in the domestic industry[55]. Strategic Initiatives - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves[8]. - The company has outlined measures to improve profitability in the "Management Discussion and Analysis" section of the report[6]. - The company plans to explore the integration of gaming products with new technologies to enhance user experience and promote cultural exports[60]. - The company aims to leverage its European club resources to develop Chinese football talent, contributing to the growth of the football industry in China[53]. - The company is focusing on expanding its business and diversifying its operations through strategic partnerships[79]. Market Environment - The company operates in an industry without overcapacity or technological substitution risks, indicating a stable market environment[6]. - The sports industry in China is projected to reach a total value of 5 trillion yuan by 2025, supported by national policies and increasing consumer demand[45]. - The gaming industry in China saw a 6.40% increase in actual sales revenue, reaching ¥296.51 billion in 2021[42]. - The overseas sales revenue of domestically developed games reached $18.01 billion in 2021, an increase of 16.59% year-on-year[42]. - The company is positioned to benefit from the growing trend of integrating NFTs into football, with over 20 clubs in major leagues already launching similar products[45]. Risk Management - There are no significant adverse risk factors affecting the company's operational, financial status, or ongoing profitability[7]. - The company emphasizes the importance of understanding the risks associated with forward-looking statements regarding future plans[6]. - The company faces risks in the gaming industry due to rapid technological changes and stricter regulations on game publishing[130]. - The football industry poses risks related to team performance fluctuations, which can affect revenue from broadcasting rights and merchandise sales[131]. - The ongoing COVID-19 pandemic continues to pose risks, with potential impacts on logistics and sales channels, prompting the company to adapt to a new normal[136]. Governance and Management - The company has established a performance evaluation and incentive system linking management compensation to business performance, ensuring transparency in executive appointments[145]. - The governance structure complies with relevant laws and regulations, ensuring independent operation from the controlling shareholder[143]. - The company maintains a complete and independent operational system, including R&D, production, and sales, without reliance on the controlling shareholder[148]. - The company has a diverse board with members holding various qualifications, including CPA and legal qualifications, enhancing its governance structure[159][162]. - The company has seen a stable leadership structure with key executives holding long-term positions, ensuring continuity in management[163]. Employee and Compensation - The total number of employees at the end of the reporting period is 2,179, with 102 in the parent company and 2,077 in major subsidiaries[182]. - The professional composition includes 812 production personnel, 252 sales personnel, 835 technical personnel, 51 financial personnel, and 229 administrative personnel[182]. - The company’s compensation policy emphasizes strategic orientation, focusing on job value, employee capability, and performance, with a different pay distribution model for sales and other personnel[184]. - The total remuneration paid to directors, supervisors, and senior management in 2021 amounted to 3.5725 million yuan[171]. - The remuneration for the chairman and general manager, Chen Chuanghuang, was 445,500 yuan[172]. Research and Development - The company applied for 20 patents in the toy sector during the reporting period, with a total of 270 patents held by the end of the period, including 7 invention patents[65]. - R&D expenses surged by 224.20% to ¥71,121,219.54 in 2021, up from ¥21,937,633.54 in 2020, primarily due to the reclassification of certain game development costs[101]. - The company plans to enhance its game development capabilities through the implementation of an independent AI real-time calculation 3D game project, which is expected to improve brand influence and economic benefits[103]. - The company’s financial director has a strong background in finance, having previously served as the financial director at Xinghui Interactive Entertainment Co., Ltd.[164]. - The company has developed a comprehensive R&D and production system for its toy business, significantly reducing the development cycle for car models from over a year to approximately four months[74].