Financial Performance - The adjusted net profit of the group decreased by 49.3% from RMB 279.5 million for the year ended December 31, 2021, to RMB 141.8 million for the year ended December 31, 2022, primarily due to delays in production and broadcasting of certain series caused by the COVID-19 pandemic [1]. - Revenue declined by 23.8% from RMB 1,249.0 million for the year ended December 31, 2021, to RMB 951.5 million for the year ended December 31, 2022, largely due to the postponement of the series "Love Is Only" to March 27, 2023 [14]. - The gross profit decreased by 33.1% from RMB 559.0 million for the year ended December 31, 2021, to RMB 374.0 million for the year ended December 31, 2022, with the gross margin dropping from 44.8% to 39.3% [22]. - The company reported a total comprehensive loss of RMB 732,034,000 for the year, compared to a profit of RMB 60,913,000 in the previous year, indicating a significant decline in performance [84]. - The basic and diluted loss per share for the company was RMB 2.95, compared to earnings of RMB 0.61 in the prior year [87][88]. Equity and Debt - Total equity attributable to the owners of the company increased to RMB 2,390.5 million as of December 31, 2022, compared to a deficit of RMB 1,322.5 million as of December 31, 2021, mainly due to the issuance of ordinary shares related to the IPO [4]. - Total debt decreased by 79.2% from RMB 4,285.6 million as of December 31, 2021, to RMB 891.8 million as of December 31, 2022, primarily due to the conversion of redeemable convertible preferred shares into ordinary shares post-IPO [4]. - The company’s share premium reserve increased significantly to RMB 4,437,226,000 from RMB 23,983,000, indicating strong investor confidence [96]. Cash Flow and Investments - Cash outflow from operating activities was RMB 199.0 million for the year ended December 31, 2022, compared to an inflow of RMB 436.1 million for the year ended December 31, 2021, a decrease of 145.6% [6]. - Cash outflow from investing activities was RMB 284.9 million for the year ended December 31, 2022, compared to an inflow of RMB 328.9 million for the year ended December 31, 2021, a decrease of 186.6% [8]. - Cash inflow from financing activities increased by 709.4% to RMB 329.1 million for the year ended December 31, 2022, compared to an outflow of RMB 54.0 million for the year ended December 31, 2021, primarily due to funds raised from the IPO [9]. Operational Highlights - The company launched several successful dramas, achieving an average Douban score of 7.9 for four major series, the highest in its history [30]. - The short video business saw significant growth, with the short drama "Twenty-Nine" achieving over 790 million total views and a peak single episode view of over 140 million [38]. - The company is actively developing local adaptations of its dramas, including a Thai version of "Thirty Only," set to start production in Q2 2023 [40]. - The company has established its own YouTube channel, which has rapidly increased viewership and will serve as a key distribution channel for overseas dramas [41]. - The company continues to enhance its operational control and cost management to improve production efficiency [30]. Strategic Initiatives - The company has strengthened its strategic brand client development, collaborating with 46 brands including Yum China and PepsiCo for IP integration, and is currently following up on 6 external key drama integration projects [44]. - The company launched NFT digital blind boxes for "Twenty Not Confused 2," which sold out within one day, becoming the most popular project on the platform [45]. - The company is actively developing IP derivatives, with successful launches of a musical, audiobook, and merchandise for "Hunting Crime" achieving a high rating of 9.3 on the Damai platform [47]. - The company plans to enhance its operational management capabilities and accelerate new business development, including international operations covering overseas distribution and local production [52]. Employee and Governance - As of December 31, 2022, the company had 181 employees, maintaining high recruitment standards and competitive compensation to promote business development [54]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the corporate governance code [71]. Tax and Liabilities - Income tax expenses decreased by 33.1% from RMB 62.9 million for the year ended December 31, 2021, to RMB 42.1 million for the year ended December 31, 2022, due to a reduction in taxable income [110]. - The company has not faced any significant contingent liabilities or foreign exchange losses during the year ended December 31, 2022, and will continue to monitor foreign exchange risk exposure [59]. Future Outlook - The company plans to expand its IP library, with 10% of the net proceeds (HKD 31.2 million) designated for this purpose, of which HKD 26.1 million has been used [60]. - The company has plans for potential strategic investments and acquisitions, allocating 15% of the net proceeds (HKD 46.8 million) for this purpose, which remains unutilized [60].
柠萌影视(09857) - 2022 - 年度业绩