H&R(000892)2024-04-29 11:21Financial Performance - The company reported a total revenue of 970,863,773 RMB for the year 2023, with no cash dividends or stock bonuses distributed to shareholders [4]. - The company's operating revenue for 2023 was ¥335,845,163.44, a decrease of 43.67% compared to ¥596,198,779.17 in 2022 [19]. - The net profit attributable to shareholders for 2023 was -¥397,132,196.33, a significant decline from a profit of ¥17,950,625.87 in 2022, representing a decrease of 2,312.36% [19]. - The basic earnings per share for 2023 was -¥0.41, compared to ¥0.02 in 2022, reflecting a decline of 2,150.00% [19]. - The company reported a total of ¥60,657,331.42 in non-recurring losses for 2023, compared to -¥43,737,632.16 in 2022 [24]. - The company achieved operating revenue of 335.84 million yuan, a decrease of 43.67% year-on-year, with film and television sales revenue down 48.89% [32]. - The company reported a net profit attributable to shareholders of -397.13 million yuan, a decrease of 2,312.36 million yuan compared to the previous year [32]. - The company's cash flow from operating activities was a net inflow of 178.85 million yuan, an increase of 1,907.17 million yuan year-on-year [32]. - The company’s monetary funds at the end of the year were 579.44 million yuan, an increase of 48.03% compared to the end of the previous year [32]. Risk Management and Governance - The company emphasizes the importance of risk awareness among investors regarding forward-looking statements and potential risks outlined in the report [4]. - The management discussion section highlights the company's future development outlook and potential risks it may face, although specific numerical forecasts are not provided [4]. - The company has faced uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profits over the last three accounting years [20]. - The company maintains a commitment to transparency and accuracy in its financial reporting, as stated by its management team [4]. - The company has established a robust corporate governance structure, adhering to relevant laws and regulations, ensuring transparency and protecting investor rights [98]. - The company emphasizes strict information disclosure, maintaining transparency and fairness in communication with investors [101]. - The company actively engages with investors through various channels, enhancing communication and addressing investor concerns [102]. Shareholder Engagement and Board Activities - The report indicates that all board members attended the meeting to review the annual report, ensuring collective accountability [4]. - In 2023, the company held 4 shareholder meetings and approved 23 resolutions, including 7 sub-resolutions [99]. - The board of directors convened 8 meetings, passing 43 resolutions, with 2 out of 5 members being independent directors [99]. - The supervisory board held 5 meetings, approving 10 resolutions, ensuring oversight of financial and managerial compliance [100]. - The company held four shareholder meetings during the reporting period, with participation rates of 37.89%, 39.81%, 36.49%, and 37.61% respectively [104]. Strategic Direction and Business Development - The company has not disclosed any new product launches or technological advancements in the current report, focusing instead on financial performance and risk management [4]. - The company is actively exploring new business directions, including short dramas, interactive dramas, AIGC, and film technology, with a dedicated team established for these initiatives [38]. - The company is focusing on the development of AIGC technology, which is expected to enhance script creation and special effects production efficiency [31]. - The company plans to launch several new film projects in 2024, including titles such as "Deep Dive" and "Ten Years of Warmth," aiming to enhance production quality and optimize project investment returns [89]. Financial Management and Internal Controls - The company has improved its governance system to ensure good cash flow and financial reserves, enhancing its financial management framework [40]. - The internal control system has been updated and improved according to the basic norms of internal control, effectively preventing operational risks [133]. - The internal control audit report indicates that the company maintained effective financial reporting internal controls as of December 31, 2023 [137]. - The company reported no discrepancies in the supervisory activities conducted by the supervisory board during the reporting period [124]. Legal and Compliance Issues - The company has received a total of 1,043 lawsuits related to false securities statements, with a total claimed amount of 183.57 million RMB as of December 31, 2023 [158]. - The estimated liability for these lawsuits is 16.09 million RMB, with 1,040 cases settled and 3 cases withdrawn [158]. - The company has ongoing litigation involving an estimated amount of 355.76 million RMB, with an estimated liability balance of 16.30 million RMB [158]. - The company has faced regulatory scrutiny, with chairman Zhao Zhicheng receiving a public reprimand from the Shenzhen Stock Exchange for violations of the Securities Law [113]. Employee Management and Development - The total number of employees at the end of the reporting period is 125, with 22 in the parent company and 103 in major subsidiaries [125]. - The professional composition includes 69 production personnel, 5 sales personnel, 20 technical personnel, 14 financial personnel, and 17 administrative personnel [125]. - Employee training and development are prioritized, with management participating in advanced studies to enhance skills and knowledge [127]. - The company emphasizes a performance-based compensation policy to attract and retain talent, ensuring competitive salaries [126]. Profit Distribution and Shareholder Returns - The board of directors has approved a profit distribution plan based on the aforementioned revenue figure, indicating a cautious approach to shareholder returns [4]. - The company's distributable profits for the consolidated and parent company reports for 2023 are -987,762,631.27 CNY and -664,745,884.33 CNY respectively, indicating negative distributable profits and non-compliance with cash dividend conditions [130]. - There were no cash dividends proposed during the reporting period, with a total cash dividend amount of 0.00 CNY [129]. - The company plans not to distribute profits for the 2023 fiscal year to ensure sufficient funding for long-term development and to provide stable returns to investors [131].