Financial Performance - For the year ended December 31, 2021, the company reported revenues of RMB 265,158,000, a significant increase from RMB 126,384,000 in 2020, representing a year-on-year growth of 109.5%[13]. - The gross profit for 2021 was RMB 21,729,000, with a gross profit margin of 8.2%, down from 17.2% in 2020[13][18]. - The operating loss increased to RMB 213,310,000 in 2021, compared to a loss of RMB 74,812,000 in 2020, indicating a deterioration in operational performance[13]. - The loss attributable to owners of the company was RMB 187,468,000, compared to RMB 73,784,000 in the previous year, reflecting a significant increase in losses[13]. - The return on equity for 2021 was (158%), worsening from (120.7%) in 2020, indicating a decline in profitability relative to shareholders' equity[18]. - The Group recorded a revenue of approximately RMB 265.2 million in 2021, up from RMB 126.4 million in 2020, while the net loss for the year was RMB 188.9 million compared to RMB 74.5 million in 2020[25]. - The loss for the year increased to approximately RMB 188.9 million, compared to RMB 74.5 million in 2020[45][48]. - Net loss for the year increased by 153.4% to RMB 188.9 million in 2021 from RMB 74.5 million in 2020[73]. Assets and Liabilities - Total assets decreased to RMB 240,045,000 in 2021 from RMB 433,245,000 in 2020, indicating a reduction in the company's asset base[15]. - Total liabilities were reported at RMB 359,565,000, slightly down from RMB 371,513,000 in 2020, showing a marginal improvement in the company's debt situation[15]. - The Group's gearing ratio increased to approximately 81.6% in 2021 from 44.7% in 2020[76]. - Net current liabilities increased to approximately RMB 213.2 million in 2021 from RMB 32.8 million in 2020[77]. - Cash and bank balances decreased to approximately RMB 9.8 million in 2021 from RMB 14.3 million in 2020[77]. - Trade receivables increased by 28.3% from RMB 5.5 million as of December 31, 2020, to RMB 7.0 million as of December 31, 2021, attributed to higher revenue generation[111]. - Non-current prepayments, deposits, and other receivables decreased by 74.2% from RMB 80.5 million as of December 31, 2020, to RMB 20.8 million as of December 31, 2021[112]. - Current other payables, accrued expenses, and contract liabilities increased by 156% from RMB 48.3 million as of December 31, 2020, to RMB 123.8 million as of December 31, 2021, primarily due to the reclassification of marketing and promotional contract payables[124]. Operational Efficiency - The company reported a trade receivables turnover of 2.3 days, significantly improved from 17 days in 2020, suggesting better efficiency in collecting receivables[18]. - The Group plans to improve cost control and resource allocation to enhance operational efficiency and leverage its brand effect and customer base for transformation[34]. - Selling and marketing expenses increased by 234.3% to RMB 26.3 million, primarily due to higher expenses related to agricultural product sales[66]. - General and administrative expenses decreased by 28.0% from RMB 56.7 million in 2020 to RMB 40.8 million in 2021[71]. Market and Economic Context - The chairman noted that despite the challenges posed by the COVID-19 pandemic, the global economy began to show signs of recovery, with China's GDP growing by 8.1% in 2021[22]. - The overall domestic advertising market in 2021 increased by 11.2% year-on-year, with television, radio, elevator LCD, and elevator poster advertisements rising by 1.3%, 3.4%, 31.5%, and 32.4% respectively[41]. - The total box office of Chinese films in 2021 reached RMB 47.258 billion, recovering to 74% of the pre-epidemic level[25]. - The domestic economy in China has shown a positive recovery trend since 2021, with expectations for steady recuperation and improved consumption contributing significantly to economic growth[148][150]. - The government aims to expand domestic demand and optimize the consumption market, which is expected to enhance the contribution of consumption to China's economic growth[148][150]. Strategic Initiatives - The Group is focusing on restructuring its publishing and advertising businesses to reduce reliance on printed media, which has been impacted by external factors[26]. - The Group aims to develop integrated projects in the film and media sectors, leveraging its experience and resources to create synergies with existing businesses[34]. - The Group plans to continue developing its existing businesses in advertising, marketing, consulting, and agricultural products while restructuring its publishing and advertising sectors[154][155]. - The Group will actively seek suitable industry partners and investment opportunities to create synergies with its existing businesses in the new media era[154][155]. - The film and television industry in China is anticipated to enter a golden stage of development, driven by favorable policies and digital innovation, which will benefit the Group's operations[153][155]. Management and Governance - Mr. Chen Zhi was appointed as the chairman and CEO of the company on October 9, 2019[162]. - Mr. Yu Shi Quan was appointed as the chief financial officer of the Group on June 9, 2014[165]. - Ms. Chen Min has been an associate professor of drama literature at the Central Academy of Drama since May 2007[171]. - Mr. Zhou Chang Ren has extensive print media experience, particularly in the Fujian newspaper industry[172]. - The Group's overall financial operations have been significantly managed by Mr. Yu Shi Quan[165]. Future Outlook - Management expects that additional proactive economic and monetary policies from the Chinese government will stimulate economic recovery in 2022 following disruptions caused by COVID-19[157][158]. - The Group is focusing on restructuring its publishing and advertising businesses by consolidating with cultural media and film media businesses in the PRC, and diversifying into tourism and integrated developments[190].
十方控股(01831) - 2021 - 年度财报