Funshine Culture(SZ:300860)2021-02-22 16:00Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 20% in 2020[14]. - The company's operating revenue for 2020 was ¥983,895,054.72, an increase of 7.87% compared to ¥912,126,929.27 in 2019[20]. - The net profit attributable to shareholders for 2020 was ¥260,500,436.06, showing a slight increase of 2.63% from ¥253,832,040.58 in 2019[20]. - The company achieved a revenue of 983.90 million yuan in 2020, representing a year-on-year growth of 7.87%[46]. - The net profit for the year was 260.50 million yuan, an increase of 2.63% compared to the previous year[46]. - The total assets at the end of 2020 reached ¥3,563,147,858.63, a substantial increase of 180.41% from ¥1,270,698,515.92 at the end of 2019[20]. - The net assets attributable to shareholders increased by 402.43% to ¥3,162,222,791.28 from ¥629,390,961.78 in 2019[20]. - The basic earnings per share for 2020 was ¥4.34, a decrease of 7.66% compared to ¥4.70 in 2019[20]. - The weighted average return on equity for 2020 was 17.17%, down 33.39% from 50.56% in 2019[20]. - The company’s comprehensive gross margin was 38.37% in 2020, a decline from 40.62% in 2019, primarily due to a significant drop in high-margin large cultural performance activities during the pandemic[132]. Dividend Distribution - The company plans to distribute a cash dividend of 10 RMB per 10 shares to all shareholders, totaling approximately 72 million shares[5]. - The total cash dividend amount distributed is RMB 72,074,057, which accounts for 100% of the distributable profit[139]. - The cash dividend for 2020 represents 27.67% of the net profit attributable to shareholders[145]. - The cumulative undistributed profit as of December 31, 2020, is RMB 680,305,809.44[144]. - The company has committed to ensuring the rights of minority shareholders are fully protected during the dividend distribution process[138]. - The company has a profit distribution plan emphasizing reasonable returns for investors, particularly small shareholders, over the next three years[155]. - The company adopts a profit distribution policy prioritizing cash dividends, with a minimum of 10% of distributable profits allocated for cash dividends in profitable years[157]. Market Expansion and Strategy - The company is focusing on expanding its market presence and enhancing its product offerings through new technology developments, including holographic projection technology[14]. - The company aims to increase its capital reserve by issuing 9 additional shares for every 10 shares held[5]. - The company has engaged in strategic acquisitions to bolster its market position and expand its service capabilities[14]. - The company has established partnerships to enhance its cultural performance equipment, which includes sound, lighting, and stage machinery[14]. - The company aims to enhance its cultural influence and soft power through innovative artistic methods and advanced cultural technology[32]. - The company plans to expand its large cultural performance activities into commercial performance projects and medium-sized projects, targeting contract amounts generally between 50 million to 100 million RMB[126]. - The company established a dedicated sales department in August 2020 to proactively expand market share[47]. - The company aims to leverage innovative artistic methods and cutting-edge cultural technology to promote traditional culture and enhance cultural confidence, contributing to the soft power of Chinese culture[35]. Research and Development - The company is committed to ongoing research and development to innovate its product line and stay competitive in the market[14]. - Research and development expenses increased significantly to ¥10,245,527.16, a 2,736.58% increase compared to the previous year[90]. - The number of R&D personnel rose to 66, making up 24.35% of the total workforce[93]. - The company obtained three utility model patents and several software copyrights during the year, enhancing its technical support and creative design capabilities[91]. Operational Efficiency - The company reported a net profit margin of 15% for the fiscal year 2020, reflecting improved operational efficiency[14]. - The management team has a deep understanding of industry development trends and has established efficient internal management systems, contributing to the company's operational efficiency[40]. - The company’s projects often require high levels of creativity and safety, which serves as a recognition of its comprehensive strength in the industry[38]. - The company will ensure that management's compensation is linked to operational performance to promote diligence and responsibility[170]. Impact of COVID-19 - Revenue from large cultural performances was 122.69 million yuan, significantly impacted by the COVID-19 pandemic[47]. - The cultural tourism performance segment has seen rapid growth, contributing approximately half of the company's revenue[61]. - The company plans to enhance its online performance sector to mitigate potential impacts from ongoing COVID-19 pandemic uncertainties[131]. - Operating cash inflow decreased by 46.36% to ¥572,870,876.57, primarily due to the impact of the COVID-19 pandemic on customer payments[94]. Competitive Landscape - The cultural and creative industry is experiencing increased market investment activity and expanding market size, driven by rising consumer spending and supportive industry policies, leading to intensified competition[36]. - The company recognizes the risk of increased competition in the cultural creative industry, particularly in the mid-to-low-end market segments[132]. - The company has a competitive advantage in the high-end market due to its unique creative design capabilities and extensive experience in significant projects, while the low-end market remains highly competitive[36]. Corporate Governance and Compliance - The company has committed to ensuring that raised funds are used effectively and in compliance with regulations, with a dedicated account for managing these funds[170]. - The company has established measures to ensure that any unfulfilled commitments do not lead to losses for investors, including stopping the receipt of dividends by those responsible for the commitments[166]. - The company has a long-term commitment to normal operations, ensuring that it adheres to its promises and obligations[166]. - The company will disclose the specific reasons for any failure to fulfill commitments in a timely and adequate manner, and will take corrective actions as required by regulatory authorities[166]. Investment and Financial Management - The total investment during the reporting period was ¥6,418,900,000.00, a substantial increase of 322.30% compared to the previous year[107]. - The company has raised excess funds totaling CNY 96,036.3 million, which will be used in accordance with regulatory requirements[114]. - The company has established a special account for fundraising and signed a tripartite supervision agreement with banks and the sponsor[199]. - The company confirmed that there were no significant related party transactions during the reporting period[189]. Subsidiaries and Projects - The company established two new subsidiaries, Zhengzhou Fengshang Century Cultural Tourism Development Co., Ltd. and Shanghai Fengshang Century Enterprise Development Co., Ltd., expanding its operational scope[86]. - The company completed several major cultural tourism performance projects, including "Han Song" and "Tian Han Legend," which contributed to the positive market opportunities during the pandemic[62]. - The company has successfully executed major projects such as the lighting design for the Beijing 2008 Olympic Games and the "Beijing 8 Minutes" performance at the PyeongChang 2018 Winter Olympics, showcasing its strong creative design capabilities and project experience[35][39].