OBM(SH:603729)2024-04-25 10:45Financial Performance - The net profit attributable to ordinary shareholders for 2023 is -52,420,199.67 RMB, indicating a loss for the year[6]. - Operating revenue for 2023 was CNY 329,919,776, a decrease of 23.43% compared to 2022 and a decrease of 55.41% compared to 2021[22]. - Net profit attributable to shareholders for 2023 was CNY 52,420,199, a reduction in loss of 71.72% compared to 2022 and a reduction in loss of 16.82% compared to 2021[22]. - Net cash flow from operating activities for 2023 was CNY 16,943,721, a decrease of 61.27% compared to 2022 and a decrease of 15.45% compared to 2021[22]. - The weighted average return on equity for 2023 was -10.15%, an improvement of 19.62 percentage points compared to 2022, but a decline of 1.10 percentage points compared to 2021[22]. - The company reported a significant decrease in cash flow due to reduced income and customer credit terms affecting collections[22]. - The company achieved operating revenue of CNY 329,919,776.30, a year-on-year decrease of 23.43%[39]. - The net profit attributable to shareholders was a loss of CNY 52,420,200.00, which is a 71.72% reduction in losses year-on-year[38]. - The net cash flow from operating activities decreased by 61.27% to CNY 16,943,721.65, primarily due to reduced income and customer credit terms[41]. - The company reported a net profit of 43.95 million yuan for the year 2023, with a net profit of 42.18 million yuan after deducting non-recurring gains and losses, failing to meet the performance commitment[114]. Corporate Governance - The board of directors and management have ensured the accuracy and completeness of the annual report[4]. - The company has not violated decision-making procedures for providing guarantees[8]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[8]. - The company is committed to enhancing internal control systems and corporate governance to maximize shareholder interests[77]. - The company held its 2022 annual general meeting, approving multiple key proposals, including the annual financial report and profit distribution plan[81]. - The company’s audit committee strictly adhered to legal and regulatory requirements in its operations and discussions[94]. - The company recognized the qualifications of candidates for the board of directors during the nomination committee meeting[95]. - The company’s internal control system was evaluated and reported as effective, with no significant deficiencies noted during the reporting period[106]. - The audit report issued by Zhonghua Accounting Firm is a standard unqualified opinion[5]. - The company has established several specialized committees, including the Audit Committee and the Strategic Committee, with specific members appointed[93]. Market and Industry Trends - In 2023, China's GDP grew by 5.2%, contributing to a 6.0% increase in the advertising market according to CTR Media Intelligence[30]. - The traditional television advertising market faced a 0.2% decline, while cinema video advertising expenditures increased by 21.9%[32]. - The advertising market is characterized by a rise in new product promotions, with advertisers increasing their marketing budgets for new launches[32]. - The company reported a significant focus on digital marketing services, integrating data strategies to empower e-commerce marketing efforts[31]. - The company aims to enhance its "brand + content" dual-engine strategy, leveraging digital marketing and data analytics to drive growth[31]. - The company faces intensified market competition from emerging self-media platforms, which may impact profitability and market share[75]. - The advertising market saw a 5.5% increase in overall spending compared to the same period in 2022, with significant growth in sectors like beverages and cosmetics[71]. - New brands in the advertising market experienced a spending increase of 164.9%, indicating a shift in competitive dynamics[71]. Financial Position and Assets - The total assets at the end of 2023 were CNY 637,250,760, a decrease of 9.26% compared to the end of 2022[20]. - Total current assets decreased to ¥235,768,583.42 in 2023 from ¥334,817,676.40 in 2022, a decline of approximately 29.5%[157]. - Total non-current assets increased to ¥401,482,177.54 in 2023 from ¥367,498,815.24 in 2022, an increase of approximately 9.3%[158]. - Total liabilities increased to ¥275,969,695.22 in 2023 from ¥156,452,070.93 in 2022, reflecting an increase of about 76.4%[158]. - Total equity attributable to shareholders decreased to ¥362,787,832.72 in 2023 from ¥543,751,148.57 in 2022, a decrease of approximately 33.2%[159]. - The company reported a total of 14,300 million RMB in investment properties, with a decrease of 700 million RMB impacting current profits[28]. - The company reported a significant increase in other payables due to the consolidation of ChenYue Technology, totaling 84,180.14 million yuan[57]. - The company's long-term borrowings increased to 59,486.13 million, reflecting a 100% rise due to bank loans during the reporting period[58]. Strategic Initiatives - The company aims to optimize and upgrade its business by integrating resources across various sectors, enhancing profit growth points through content and technology service advantages[73]. - The company plans to explore new media and content creation in diverse formats, establishing its own content marketing system[73]. - The company has developed a stable media resource network through over a decade of collaboration with various media outlets, enhancing its media integration capabilities[35]. - The company has strengthened risk control and optimized customer structure, focusing on high-quality client expansion to ensure steady business development[31]. - The company plans to continue diversifying its product offerings and actively explore new market areas[72]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 40,094, an increase from 39,671 at the end of the previous month[132]. - The top shareholder, Duan Peizhang, holds 23,094,300 shares, representing 24.74% of the total shares[134]. - The company has a repurchase account holding 1,172,900 shares, accounting for 1.26% of the total share capital at the end of the reporting period[135]. - The largest shareholder, Duan Peizhang, has pledged 9,669,190 shares[134]. - The total number of shares held by the top ten shareholders has changed, with new entries and exits noted[135]. Employee and Management Compensation - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounts to 3,249,051.20 yuan[86]. - The highest remuneration among the directors is 66.28 million yuan received by Duan Peizhang, the director and controlling shareholder[83]. - The company’s remuneration policy links employee compensation to company performance and individual achievements, ensuring a fair and transparent system[100]. - The company’s remuneration committee will meet in April 2024 to review the remuneration proposals for the year 2023[86]. Audit and Compliance - The audit report emphasizes the importance of internal controls in the financial reporting process to prevent material misstatements due to fraud or error[152]. - The audit firm communicated with the governance layer regarding significant audit findings and internal control deficiencies identified during the audit[155]. - The audit procedures included sampling tests of operating revenue and confirmation of sales income with major customers to ensure the accuracy and completeness of revenue recognition[148]. - Management's assessment of the recoverability of accounts receivable was also deemed a key audit matter, requiring significant accounting estimates and judgments[149]. Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[183]. - The company is focusing on digital transformation and the application of emerging technologies like AI and 5G to drive sustainable growth in the advertising sector[71].