JYKJ(SZ:300242)2024-04-25 15:44Financial Performance - The company achieved operating revenue of CNY 755 million in 2023, a year-on-year decrease of 66.81%[3]. - The net profit attributable to shareholders was a loss of CNY 95.54 million, a year-on-year decrease of 679.41%[3]. - The company's operating revenue for 2023 was ¥754,647,892.56, a decrease of 66.81% compared to ¥2,273,924,619.63 in 2022[21]. - The net profit attributable to shareholders for 2023 was -¥95,543,679.72, representing a decline of 679.41% from ¥16,593,388.33 in 2022[21]. - The net cash flow from operating activities was ¥204,704,811.85, down 48.59% from ¥398,158,596.61 in 2022[21]. - The total assets at the end of 2023 were ¥559,847,316.93, a decrease of 24.08% from ¥729,912,621.89 at the end of 2022[21]. - The net assets attributable to shareholders decreased by 16.94% to ¥408,919,549.21 in 2023 from ¥492,404,819.15 in 2022[21]. - The basic earnings per share for 2023 was -¥0.1506, a decline of 681.47% compared to ¥0.0261 in 2022[21]. - The company reported a total of ¥17,383,680.10 in non-recurring gains and losses for 2023, significantly lower than ¥87,309,723.53 in 2022[29]. - The company experienced a negative net profit for all four quarters of 2023, with the fourth quarter showing a net loss of -¥33,647,511.49[25]. Business Segments - The company's internet marketing business experienced a decline in both revenue and gross margin due to limited operational funding and the inability to secure core agency rights with major mobile manufacturers[3]. - The beauty and skincare business has established dozens of offline stores across various provinces, contributing to rapid revenue growth, although it remains unprofitable[4]. - The self-developed game "All War Chronicles" received its game license in the first half of 2023, with commercialization starting in the second half, but it has not yet generated significant revenue[5]. - In 2023, the total revenue from internet marketing was approximately ¥641.38 million, accounting for 84.99% of total revenue, a decrease of 70.32% compared to ¥2.16 billion in 2022[36]. - The revenue from the beauty and skincare segment reached 72.91 million yuan, marking a significant increase of 270.63% year-on-year[51]. - The internet marketing business accounted for 84.99% of total revenue, generating 641.38 million yuan, down 70.32% from 2022[51]. - The company established 107 offline stores across various provinces, enhancing sales and customer services in the beauty segment[48]. Cost and Expenses - The total cost of internet marketing was approximately ¥625.51 million, with media costs accounting for 92.44% of total costs[39]. - The company actively reduced the scale of its internet marketing business, leading to a 69.73% decrease in related costs[54]. - The beauty and skincare business saw a 146.68% increase in costs due to the expansion of its store network[55]. - Sales expenses increased by 15.90% year-on-year to ¥123,777,348.17, primarily due to the expansion of the beauty and skincare business[59]. - Management expenses rose by 19.72% year-on-year to ¥80,428,363.67, mainly driven by the diversification of business operations[59]. - Financial expenses decreased by 77.87% year-on-year to ¥2,262,664.71, attributed to a reduction in bank borrowings[60]. - R&D expenses fell by 71.01% year-on-year to ¥7,464,337.35, mainly due to a contraction in internet marketing operations[60]. Future Plans and Strategies - The company plans to optimize its business structure to improve operational performance and profitability moving forward[5]. - Future plans and forecasts mentioned in the report do not constitute a commitment to investors, and risks associated with these plans should be acknowledged[6]. - The company aims to enhance profitability by focusing on high-margin and quality media clients, optimizing its internet marketing business structure[83]. - The company is diversifying its business by exploring new growth areas such as insurance brokerage, game development, and beauty products, leveraging its strengths in traffic operation and data analysis[83]. - The company is actively managing its subsidiaries to ensure efficient operations while mitigating risks associated with rapid growth[85]. - The company is committed to improving internal management through reforms, organizational adjustments, and employee training[83]. - The company is considering strategic acquisitions to enhance its market position, with a target of identifying at least two potential candidates by the end of the year[144]. Governance and Management - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management, ensuring compliance with legal standards[91]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, finance, and operations, with a clear delineation of asset ownership[94]. - The company has a dedicated financial department with a complete accounting system, enabling independent financial decision-making[94]. - The company has conducted its operations in compliance with the Company Law, Securities Law, and other relevant regulations[94]. - The company reported a significant management reshuffle, with multiple executives resigning and new appointments made, including Yang Jiade as the new General Manager[99]. - The company is focusing on enhancing its governance structure through these changes in leadership and board composition[99]. - The company has established a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and senior management to enhance operational compliance[135]. Legal and Compliance Issues - The company faced regulatory penalties for failing to disclose related party transactions and other compliance issues, resulting in a warning letter from the China Securities Regulatory Commission on December 7, 2023[107]. - The company has actively rectified the issues raised in the warning letter and submitted a written rectification report by January 5, 2024[171]. - The company is currently involved in a lawsuit with an amount in dispute of CNY 11.6958 million, with CNY 6.6210 million related to a subsidiary, and the case is still in the first instance[169]. - The company has recognized a provision for other litigation amounting to CNY 0.116 million[169]. - The company has committed to reducing related party transactions with Mingjia Technology to ensure fair dealings[150]. Market and Competitive Landscape - The advertising market in China showed a recovery trend, with Q1 to Q3 growth rates of 2.3%, 14.1%, and 3.6% respectively, and an expected growth rate of 9.8% in Q4[34]. - The active device market share for Huawei reached 22.8%, leading among domestic brands, while the overall market for smart terminals is dominated by Huawei, OPPO, vivo, and Xiaomi, which together hold over 70%[34]. - The average monthly usage time for mobile internet users decreased by 11.4 hours year-on-year, indicating a slight decline in user engagement[33]. - The internet marketing market in China is projected to reach approximately ¥675 billion in 2023, reflecting a year-on-year growth of 9.76%[32]. Employee and Training Initiatives - The total number of employees at the end of the reporting period was 732, with 695 from major subsidiaries[121]. - The professional composition includes 535 sales personnel, 28 technical personnel, and 25 financial personnel[122]. - The company has implemented an annual training plan to enhance employee skills and promote career development[124]. - The company has established a salary management system to attract and retain talent, ensuring alignment with performance management[123]. Sustainability and Social Responsibility - The company emphasizes its commitment to social responsibility, focusing on innovation, technology leadership, and shareholder value creation[135]. - The company is committed to sustainability initiatives, planning to invest 100 million RMB in green technologies over the next three years[147].