DDMC(SH:600136)2024-05-28 09:31Licensing and Revenue - The company reported a licensing agreement with Super Sports Media Inc. for LaLiga media rights at a price of $15 million, effective from August 1, 2021[5]. - The confirmed revenue for the 2021-2022 LaLiga rights was €45 million, but the company has not adjusted this amount based on the new agreement due to uncertainties regarding its validity[5]. - In 2022, the company's operating revenue was CNY 740,580,750.38, a decrease of 49.11% compared to CNY 1,455,140,178.88 in 2021[27]. - The company's revenue for 2022 was CNY 74,058.08 million, a decline of 49.11% year-on-year[52]. - The total scale of China's sports industry reached 2.9483 trillion RMB in 2019, with a compound annual growth rate of 15.8% from 2016 to 2019[40]. Financial Performance - The net profit attributable to shareholders was CNY -4,724,347,627.49, compared to CNY -1,336,075,620.72 in the previous year, indicating a significant loss[27]. - The company's total assets decreased by 46.22% to CNY 3,680,336,926.70 from CNY 6,843,173,305.44 in 2021[27]. - The basic earnings per share for 2022 was CNY -8.10, compared to CNY -2.29 in 2021, reflecting a worsening financial position[28]. - The company's net assets attributable to shareholders were CNY -4,723,159,409.44 at the end of 2022, a decline of 14,914.78% from CNY 31,881,390.75 in 2021[27]. - The company reported a significant net loss of -¥605,782,520.63 from its subsidiary, Qiangshi Media, which focuses on film production and distribution[79]. Operational Challenges - The company identified three instances of non-compliant guarantees during self-inspection, raising concerns about potential undisclosed similar issues[6]. - There are multiple equity repurchase obligations, with ongoing litigation regarding the fulfillment of these obligations, which may affect the company's financial liabilities[6]. - The company has acknowledged the existence of risks related to its operations and has detailed these in the management discussion section of the report[11]. - The company has not provided any forward-looking commitments in its future plans, emphasizing the importance of investor caution regarding investment risks[10]. - The company has lost its sports-related business due to the termination of agreements with La Liga and AFC, but continues to pursue copyright operations and sports marketing[44]. Governance and Management - The company has established internal control systems in compliance with relevant laws and regulations, but has faced challenges in executing decision-making processes for certain transactions[105]. - The company has initiated measures to improve its financial condition, although the effectiveness of these measures remains uncertain[100]. - The company has seen a turnover in its board, with several directors and supervisors leaving during the reporting period[114]. - The company has appointed new directors and supervisors, with terms starting from March 8, 2023, and ending on March 7, 2026[111]. - The company is focusing on compliance with regulatory requirements to avoid future penalties and improve its market reputation[124][126]. Legal and Regulatory Issues - The company has faced regulatory scrutiny, receiving multiple warnings and penalties from the Shanghai Stock Exchange and the China Securities Regulatory Commission for issues related to share repurchase plans and incomplete disclosures[123][124][125][126]. - The company reported a total guarantee amount of 86,208.41 million RMB, which accounts for 18.65% of the company's net assets[176]. - The company has received a non-standard audit opinion from Asia Pacific (Group) CPA, indicating issues with the financial statements for the year 2022[158]. - The company has been criticized by the Shanghai Stock Exchange for not prudently formulating share repurchase plans and failing to complete them as promised[167]. - The company has multiple ongoing significant litigation and arbitration matters, including disputes related to loans and contracts[166]. Strategic Focus and Future Outlook - The company is focusing on high-quality content production, with an emphasis on original capabilities and market-oriented pricing strategies[81]. - The company is exploring opportunities in the sports copyright distribution sector, which involves purchasing broadcasting rights and reselling them to media platforms[83]. - The company is currently in a pre-restructuring phase and aims to enhance internal control management and governance standards[89]. - The company plans to accelerate the collection of accounts receivable and clear inventory to revitalize existing assets[89]. - The company anticipates that the film industry will recover due to new policies aimed at promoting quality productions and protecting copyrights[82]. Employee and Compensation Matters - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 9.18 million CNY, with no changes in shareholding for the year[111]. - The company has a competitive salary policy designed to attract and retain talent, considering market conditions and individual performance[138]. - The company has established a clear cash dividend policy to provide stable returns to investors, aligning with legal regulations and company bylaws[140]. - The company has a structured remuneration system for its directors and senior management based on their roles and responsibilities[120]. - The company emphasizes talent development as a key component of its strategy, focusing on employee skills and growth through various training programs[139]. Environmental and Social Responsibility - No environmental protection mechanisms were established, and no funds were allocated for environmental protection during the reporting period[149]. - The company did not implement any carbon reduction measures or report on efforts to decrease carbon emissions[150]. - The company did not disclose a separate social responsibility report or any specific social responsibility initiatives during the reporting period[150]. - The company has not engaged in any mergers or acquisitions during the reporting period, focusing instead on internal management and control[145]. - There were no updates on stock incentive plans or employee stock ownership plans during the reporting period[143].