TANGEL(SZ:300148)2023-04-23 16:00Financial Performance - The total revenue for 2022 was ¥605,838,110.06, representing a 19.86% increase compared to ¥505,470,902.13 in 2021[17]. - The net loss attributable to shareholders was ¥329,302,246.71, a 51.45% improvement from a loss of ¥678,241,830.06 in the previous year[17]. - The basic and diluted earnings per share improved to -¥0.39 from -¥0.81, marking a 51.85% increase[17]. - The revenue related to core business after deductions was ¥587,326,878.73, compared to ¥503,329,240.11 in 2021[17]. - The company reported a weighted average return on equity of -25.61%, an improvement from -36.21% in the previous year[17]. - The company reported a net profit of -642,030,020.08 CNY for 2022, leading to a cumulative distributable profit of -2,422,629,255.51 CNY by the end of the year[127]. - The company has decided not to distribute cash dividends or issue bonus shares for both 2021 and 2022 due to negative distributable profits[127]. Cash Flow and Investment - The net cash flow from operating activities decreased by 21.02% to ¥110,967,186.87 from ¥140,497,622.42 in 2021[17]. - The cash flow from operating activities showed a recovery, with a net cash inflow of CNY 84.37 million in Q4 2022, compared to a cash outflow of CNY 85.36 million in Q1 2022[20]. - Investment cash inflow increased by 42.97% to ¥1,219,041,178.50, while investment cash outflow rose by 26.45% to ¥1,282,861,666.71[64]. - The net increase in cash and cash equivalents decreased by 70.69% to ¥19,775,717.32 in 2022[64]. - The total investment amount for the reporting period was ¥58,761,666.71, a decrease of 70.40% compared to the previous year's investment of ¥198,522,207.36[75]. Market and Industry Trends - The book retail market in China saw a decline of 11.77% in 2022, with physical retail channels experiencing a 37.22% drop, indicating a challenging market environment[29]. - The mobile gaming industry in China reported a 10.33% decrease in actual sales revenue, totaling CNY 265.88 billion in 2022, reflecting a shift towards stock competition in the market[30]. - The overall industry outlook remains cautious, with a need for innovation and adaptation to changing consumer demands and market conditions[29]. Business Strategy and Development - The company is focusing on digital transformation in the education sector, aligning with national policies aimed at enhancing cultural consumption and educational equity[33]. - The company plans to leverage digital technologies to address educational development challenges, aiming for a more equitable distribution of educational resources[33]. - The company is actively optimizing resource allocation to enhance competitiveness in publishing and gaming sectors[40]. - The company is seeking new growth points through the incubation of new businesses in technology-driven sectors[34]. - The company aims to enhance its market share in the education publishing sector while developing new projects such as educational textbooks and materials related to Xi Jinping's thoughts[84]. - The gaming business will focus on long-term operations of existing card and strategy games, while also exploring new genres like VR and cloud gaming, and applying AI technology to improve development efficiency[85]. Governance and Management - The governance structure was enhanced with a new board and management team, focusing on high-quality development and risk mitigation[43]. - The company has established a talent strategy and comprehensive human resources policies to regulate employee hiring, training, and compensation[95]. - The company has implemented a stock incentive plan to motivate and retain key personnel[100]. - The company has a diverse management team with various backgrounds and experiences contributing to its governance[110]. - The company has maintained a consistent payment of remuneration to its management team over the years[111]. Audit and Compliance - The audit opinion for the financial statements was a standard unqualified opinion, issued on April 20, 2023, by Zhongzheng Huacai Accounting Firm[192]. - The company’s internal controls related to revenue recognition were evaluated as part of the audit process, focusing on the complexity of the gaming industry[194]. - The audit report will highlight any internal control deficiencies identified during the audit process[198]. - The company is committed to maintaining compliance with regulations set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange[118]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 48,405, with 40,781 holding preferred shares[179]. - The largest shareholder, Hunan Tianhong Investment Group, holds 11.84% of the shares, totaling 98,940,202 ordinary shares, which are pledged[180]. - The company completed the repurchase of 9,000,000 restricted shares on February 23, 2022[174]. - The total number of shares decreased from 844,339,343 to 835,339,343 due to the repurchase and cancellation of 9,000,000 restricted shares[173].