Funshine Culture(SZ:300860)2022-04-22 16:00Financial Performance - The company's operating revenue for 2021 was ¥466,742,052.51, a decrease of 52.56% compared to ¥983,895,054.72 in 2020[25]. - The net profit attributable to shareholders for 2021 was ¥92,164,180.42, down 64.62% from ¥260,500,436.06 in 2020[25]. - The net profit after deducting non-recurring gains and losses was ¥23,600,878.64, a decline of 89.68% from ¥228,755,649.77 in 2020[25]. - The net cash flow from operating activities was ¥55,489,107.04, a decrease of 29.55% compared to ¥78,760,170.00 in 2020[25]. - The total assets at the end of 2021 were ¥3,876,751,820.78, an increase of 8.80% from ¥3,563,147,858.60 at the end of 2020[25]. - The net assets attributable to shareholders at the end of 2021 were ¥3,185,700,006.73, a slight increase of 0.74% from ¥3,162,222,791.20 at the end of 2020[25]. - The basic earnings per share for 2021 were ¥0.67, down 70.61% from ¥2.28 in 2020[25]. - The diluted earnings per share for 2021 were also ¥0.67, reflecting the same decline of 70.61% from ¥2.28 in 2020[25]. - The weighted average return on equity for 2021 was 2.92%, a significant drop of 14.25% from 17.17% in 2020[25]. - Consolidated net profit was 91.96 million yuan, down 64.70% compared to the same period last year[58]. - The company achieved consolidated revenue of 466.74 million yuan, a decrease of 52.56% year-over-year[58]. Dividend and Share Information - The company reported a cash dividend of 0.70 RMB per 10 shares (including tax) for a total of 137,262,108 shares[8]. - The company has not issued any bonus shares for the reporting period[8]. - The board of directors has approved the profit distribution plan during the board meeting[7]. - The company has a total of 137,262,108 shares outstanding[8]. Risk Factors and Future Outlook - The company has outlined potential risks in its future development outlook section[8]. - The company faces risks from the ongoing impact of COVID-19 on large cultural events, which could adversely affect its business operations[139]. - The company is aware of the competitive risks in the cultural creative industry, particularly in the mid-to-low-end market, which is becoming increasingly crowded[140]. - The company is closely monitoring the investment growth rate in downstream industries, as a slowdown could negatively impact its business development and growth potential[140]. Market Trends and Industry Insights - The cultural and creative industry in China saw a significant growth in value added from 764.04 billion yuan in 2019 to 1,956.5 billion yuan in 2021, with a compound annual growth rate of 60%[39]. - The performance of the live performance market in China declined, with the number of performances dropping from 3.1246 million in 2018 to 2.2561 million in 2020, reflecting a compound annual growth rate of -15.03%[41]. - Domestic tourism numbers fell by 52.1% year-on-year in 2020, totaling 2.879 billion trips, while tourism revenue decreased by 61.1% to 2.23 trillion yuan[42]. - The urbanization rate in China increased from 44.34% in 2006 to 63.89% in 2020, indicating significant potential for growth in the landscape art lighting market[42]. - The overall development of the cultural tourism performance market is transitioning towards a more innovative and refined model, focusing on themes, professionalism, and branding[42]. - The cultural and creative industry is experiencing increased market investment activity and expansion, driven by rising consumer spending and supportive policies[48]. - The high-end market is showing a trend towards concentration among brand-leading companies, with increasing demand for high-end cultural creative products and services[48]. Company Strategy and Operations - The company has shifted its cultural tourism performance services from targeting corporate clients to ordinary consumers, extending the service chain in the cultural tourism industry[44]. - The company aims to integrate cultural lighting design with artistic expression, enhancing the cultural quality of cities through innovative lighting solutions[45]. - The company aims to enhance cultural confidence and soft power through innovative artistic methods and cutting-edge cultural technology, gradually becoming an industry leader[47]. - The company is expanding its cultural tourism business, moving from project contracting to commercial operations[65]. - The company is developing the "404Lab · Wu" project in Xi'an, expected to officially operate in May 2022[68]. - The company launched the virtual music carnival "Night of Gathering Light," integrating virtual and interactive entertainment experiences[76]. - The company is developing a virtual performance cloud platform to enhance online concert experiences, targeting a market of 370 million individuals interested in online performances and subculture[99]. - The company plans to focus on expanding its large cultural performance projects while reducing cultural tourism performance projects[86]. Research and Development - Research and development expenses surged by 188.16% to ¥29,523,917.90, reflecting increased investment in R&D projects[95]. - The company's R&D investment in 2021 amounted to ¥29,523,917.90, representing 6.33% of its operating revenue, a significant increase from 1.04% in 2020[103]. - The number of R&D personnel increased by 57.58% from 66 in 2020 to 104 in 2021, with R&D personnel now accounting for 33.33% of the total workforce[101]. - The company has filed for multiple patents, including two utility model patents and one invention patent related to stage lighting and control systems, enhancing its technological capabilities[96]. - The company has applied for 13 software copyrights and is in the process of applying for 1-2 utility model patents and 1-2 invention patents related to lighting art effects[99]. Governance and Management - The company emphasizes the importance of accurate financial reporting and has ensured the completeness and truthfulness of the annual report[6]. - The company has established a strong brand reputation, benefiting from its creative design and service quality, which enhances order acquisition and customer loyalty[52]. - The company has implemented a stock incentive plan, granting up to 2.2 million shares to 74 executives and core employees to support long-term stable development[52]. - The management team has extensive industry experience and has strengthened its core management capabilities by hiring three new senior managers[53]. - The company has a complete personnel management system, ensuring that senior management does not hold positions in the controlling shareholder's enterprises[149]. - The company has a fully independent governance structure, including a shareholders' meeting, board of directors, and supervisory board[149]. - The company has established a complete independent business system, free from competition with the controlling shareholder[150]. - The company has undergone significant management changes, including the appointment of new executives to support business growth[163]. Financial Management - The company reported a credit impairment loss of ¥68,047,434.27, which is -54.32% of total profit[108]. - The company's cash and cash equivalents decreased by 16.32% to ¥255,008,750.62, constituting 6.58% of total assets[110]. - Accounts receivable increased by 1.22% to ¥443,196,303.44, making up 11.43% of total assets[110]. - The total amount of unused raised funds is ¥134,209.46 million, with no funds unused for over two years[121]. - The company has utilized CNY 28,810 million of the raised funds for supplementary working capital, which is 100% of the allocated amount[129]. - The company has a total of CNY 96,036.30 million in excess raised funds, with CNY 28,810 million already utilized[129]. Shareholder Engagement - The company held its first extraordinary shareholders' meeting in 2021 with a participation rate of 64.22%[151]. - The company did not receive any objections from the board members regarding company matters during the reporting period[190]. - The board of directors actively participated in governance and decision-making, ensuring the protection of the interests of minority shareholders[192].