SFC(601595)2022-03-24 08:31Group 1: Company Performance and Recovery - In 2021, the company achieved a turnaround from losses to profitability, aided by strict pandemic measures and innovative business practices [3] - The company’s film screening and distribution operations gradually recovered in 2021 compared to the previous year [3] - The company expects to report a profitable 2021 based on its preliminary earnings announcement [3] Group 2: Shanghai Cinema Renovation - Shanghai Cinema temporarily closed for renovation starting February 21, 2022, as part of a significant upgrade [4] - The renovation aims to transform the cinema into a "most beautiful premiere hall" while integrating diverse business models [5] - The upgraded cinema will serve as a cultural landmark, promoting a multi-faceted ecosystem centered around film and arts [5] Group 3: Impact of COVID-19 on Operations - The company’s cinemas in Shanghai were closed from March 11, 2022, due to pandemic restrictions, affecting daily operations [6] - The company is implementing cost-reduction and efficiency measures to mitigate the impact of the pandemic on its business [6] Group 4: Future Expansion and Business Strategy - The cinema terminal assets remain a core part of the company’s strategy, focusing on quality and scale amid industry competition [7] - The company plans to expand its "cinema+" business model, enhancing customer experience and operational efficiency [7] Group 5: Industry Trends and Outlook - The National Film Administration's 14th Five-Year Plan aims for high-quality development in the film industry by 2035 [8] - The film industry is shifting from growth based on the number of cinemas to content-driven development, with quality content being a key driver [8] - The company expresses confidence in the sustainable development of the Chinese film market, supported by improved domestic film production [8]