TANGEL(300148)2022-04-25 16:00Financial Performance - The company's operating revenue for 2021 was ¥505,470,902.13, a decrease of 40.37% compared to ¥847,680,612.10 in 2020[21] - The net profit attributable to shareholders was -¥678,241,830.06, showing an improvement of 26.56% from -¥923,478,255.00 in the previous year[21] - The net cash flow from operating activities was ¥140,497,622.42, reflecting a slight increase of 2.88% from ¥136,564,308.08 in 2020[21] - The total assets at the end of 2021 were ¥1,992,143,939.55, down 29.63% from ¥2,830,922,876.41 at the end of 2020[21] - The net assets attributable to shareholders decreased by 35.95% to ¥1,494,738,099.54 from ¥2,333,825,232.51 in 2020[21] - The basic earnings per share for 2021 was -¥0.81, an improvement of 26.36% from -¥1.10 in 2020[21] - The weighted average return on equity was -36.21%, a decline of 7.32% from -28.89% in the previous year[21] Operational Highlights - In Q1 2021, the company reported revenue of approximately ¥108.06 million, which increased to ¥157.23 million in Q2, but dropped to ¥85.76 million in Q3 before recovering to ¥154.41 million in Q4[23] - The net profit attributable to shareholders was ¥22.95 million in Q1, but turned negative in Q3 and Q4, with losses of ¥6.68 million and ¥716.95 million respectively[23] - The net cash flow from operating activities showed a significant improvement, moving from a negative ¥19.99 million in Q2 to a positive ¥157.38 million in Q4[23] - The mobile gaming market in China accounted for 76.06% of total revenue, reflecting a year-on-year growth of 7.57%[30] - The overseas market for Chinese self-developed games reached actual sales revenue of $18.01 billion, marking a year-on-year increase of 16.6%[31] - The company holds a total of 792 software copyrights, with 24 new copyrights added during the reporting period[35] - The company has 54 game licenses, indicating its strong position in the mobile gaming sector[35] - As of the end of the reporting period, the company operated a total of 69 game products, with 8 new games launched during the period[41] Strategic Initiatives - The company is focusing on expanding its game business while also developing new business areas in cultural entertainment and education driven by technological innovation[34] - The company is actively exploring VR products and plans to launch the VR game "EDM Storm" for testing in 2022[42] - The company has established a cloud gaming team and is collaborating with Huawei to enhance its cloud gaming offerings, including a cloud phone product and a PaaS service platform[42] - The company is expanding its overseas market presence, with operations in Japan, South Korea, Malaysia, Indonesia, and Vietnam[41] - The company has launched several new games targeting female audiences, such as "Good Morning Girl" and "Kyoto Smoke Rain Record," which have already been released in Hong Kong and Taiwan[41] - The company plans to optimize its marketing system and develop more high-quality cloud games to meet user demands[42] Financial Management - The company has initiated the establishment of a private equity fund through Tianzhou Venture Capital, aiming to incubate high-tech and high-growth projects[43] - The company has focused on optimizing its asset structure and has exited several underperforming investments, including subsidiaries like Zhongnan Tianzhou and Mengxiangzhe International Travel Agency[43] - The company's cash inflow from operating activities was ¥727,027,324.85 in 2021, a decrease of 32.56% from ¥1,077,966,980.06 in 2020[64] - The net cash inflow from investment activities increased by 60.34% to ¥852,672,959.30, primarily due to the recovery of structured deposits[65] - The net cash outflow from financing activities decreased by 75.30% to ¥23,722,013.91, mainly due to reduced bank loan repayments[66] - The net cash flow from financing activities increased by 236.23% to ¥89,937,986.09, driven by new long-term borrowings and employee stock incentive payments[66] Governance and Compliance - The company maintained independence from its controlling shareholders in terms of assets, personnel, finance, and operations[119] - The company is focused on maintaining a strong governance structure and ensuring compliance with relevant laws and regulations[119] - The company has implemented a governance special action plan since January 2021 to enhance its governance level, focusing on internal control and information disclosure[171] - The company has committed to avoiding competition with its controlling shareholders and related parties, and has adhered to this commitment throughout the reporting period[175] - The company has not reported any changes in the positions of directors, supervisors, or senior management during the reporting period[124] Employee Management - The total number of employees at the end of the reporting period was 462, including 52 at the parent company and 410 at major subsidiaries[145] - The company has a diverse management team with members holding various academic qualifications and professional certifications[130] - The company has implemented a dynamic compensation policy prioritizing performance while ensuring fairness, consisting of position salary, insurance allowances, and performance pay[147] - The company has established a training program at three levels: company-wide, departmental, and voluntary employee participation to enhance professional skills and overall quality[148] - The company encourages employees to engage in self-directed learning to improve their professional and comprehensive skills[148] Risk Management - The report highlights potential risks in the company's operations and outlines measures to address them[4] - The company has indicated that its ability to continue as a going concern is uncertain, as reflected in the audit report[21] - The company recognizes the risk of core personnel turnover and is committed to enhancing its talent incentive mechanisms to maintain a stable workforce[104] - The company faces intensified market competition due to advancements in AI and big data, necessitating a focus on technological innovation to sustain its competitive edge[105] - The company will continue to adjust its business strategies in response to regulatory policies affecting the gaming industry, ensuring compliance to mitigate potential risks[107]