Financial Performance - The total revenue for the year ended December 31, 2021, was approximately RMB 431 million, a decrease of about 50.8% compared to RMB 876 million for the year ended December 31, 2020[9]. - Gross profit fell approximately 100.8% to about RMB 3 million from approximately RMB 333 million in the previous year[9]. - The net loss for the reporting period was approximately RMB 380 million, a decrease of about 3,197.1% from a net profit of approximately RMB 12 million in the previous year[9]. - Revenue from licensing television drama rights was approximately RMB 362 million, an increase of about 344.5% from RMB 81 million in the previous year[14]. - Revenue from investment in television dramas, web dramas, and films as a non-executive producer was approximately RMB 70 million, a decrease of about 91.2% from RMB 795 million in the previous year[14]. - Total revenue decreased by approximately 50.8% from RMB 87.6 million in 2020 to RMB 43.1 million in 2021, primarily due to changes in broadcasting plans and delays in production caused by the COVID-19 pandemic[17]. - Other income and gains decreased by 78.7% from approximately RMB 71.26 million in 2020 to approximately RMB 15.15 million in 2021, primarily due to government subsidies received in 2020 for the successful listing on the stock exchange[28]. - The net profit decreased by approximately 3,197.1% from a profit of approximately RMB 12 million in 2020 to a loss of approximately RMB 380 million in 2021, resulting in a net profit margin decline from approximately 1.4% to negative 88.0%[36]. Business Operations - The company is currently involved in the production of 2 web dramas and has invested in 4 web dramas, aiming to expand its business with online video platforms[10]. - The company has successfully completed the sale of 1 self-produced and 1 externally purchased television drama during the reporting period[14]. - The company plans to continue exploring opportunities in web drama and online movie production to diversify its revenue sources[10]. - The company has suspended the production of 1 television drama due to market trends and competition, reallocating resources to other business opportunities[14]. - The company participated in the production of 2 web dramas and 1 web movie during the reporting period, adapting to market trends[15]. - The company aims to restore a more proactive business operation and achieve better performance and returns in 2022[15]. - The company is committed to using its resources flexibly to seize new business opportunities in response to market trends[68]. Cost Management - The cost of sales decreased by approximately 20.1% from about RMB 54.3 million in 2020 to about RMB 43.4 million in 2021, primarily due to reduced costs in the non-executive production segment[22]. - Sales costs for the television drama broadcasting rights segment increased by approximately 820.8% from about RMB 4.2 million in 2020 to about RMB 38.3 million in 2021, due to increased revenue from licensing[22]. - Administrative expenses decreased by approximately 8.2% from approximately RMB 159.56 million in 2020 to approximately RMB 146.48 million in 2021, mainly due to a reduction in listing expenses[31]. - Financial asset impairment losses amounted to approximately RMB 27.5 million, primarily due to an increase in long-term overdue trade receivables[32]. Corporate Governance - The board consists of 12 directors, including 6 executive directors, 2 non-executive directors, and 4 independent non-executive directors, ensuring compliance with listing rules[103]. - The company has adopted the corporate governance code as a basis for its governance practices, ensuring adherence to applicable rules since its listing[97]. - The board is responsible for the overall leadership and supervision of the group's strategic decisions and performance monitoring[99]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee to oversee specific areas[99]. - The company has maintained a high level of corporate governance to protect shareholder interests and enhance corporate value[97]. - The company has undergone a change in board composition, with the appointment of a new director effective May 25, 2021[103]. - The company has continuously reviewed and improved its corporate governance practices to ensure compliance with the governance code[97]. Employee Relations - As of December 31, 2021, the group employed 28 full-time employees, an increase from 24 in 2020[56]. - The company promotes a healthy work environment and provides training opportunities to employees, ensuring compliance with labor contract terms[180]. - Employee compensation includes basic salary, position salary, seniority salary, bonuses, special rewards, and insurance benefits, with social insurance contributions based on the previous year's salary[193]. - The company conducts annual health check-ups for employees at a tertiary hospital and provides supplementary medical insurance[197]. - The company organized team-building activities and cultural events, including 1 outdoor team-building event and 2 annual meetings[200]. Environmental, Social, and Governance (ESG) - The company published its annual ESG report covering the period from January 1, 2021, to December 31, 2021, detailing its management policies and performance in environmental, social, and governance aspects[163]. - Key ESG issues identified include product quality, intellectual property protection, customer relationship management, and labor management, among others[170]. - The company aims to ensure sustainable business development while providing stable and long-term returns to shareholders[171]. - The report adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring compliance with regulatory requirements[167]. - The company has established a comprehensive ESG management system involving the board, management, and relevant departments to enhance ESG performance[176]. - The report emphasizes the importance of stakeholder engagement in identifying and prioritizing ESG issues[175].
新石文化(01740) - 2021 - 年度财报