[年报]宋城演艺(300144):2021年年度报告（英文版）
原标题:宋城演艺:2021年年度报告（英文版） Section I Important Notes, Contents And Definitions The Board of Directors, the Board of Supervisors, directors, supervisors and senior management members of the Company hereby guarantee that the information presented in this annual report is authentic, accurate, complete and free of any false records, misleading statements or material omissions, and they will bear joint and several liabilities for such information. Shang Lingxia, the person in charge of the Company, Chen Shengmin, chief accountant, and Zhu Shana, head of accounting department (Accounting Officer) hereby declare and warrant that the financial statements in the annual report are authentic, accurate, and complete. All directors attended the meeting of the Board of Directors for deliberation of this annual report. The content concerning the future plan and performance forecast in this report shall not constitute the Company's substantial commitment to investors and relevant persons who shall maintain adequate risk awareness and shall understand the differences between the plans, forecasts and commitments. The risks that the Company may face in management and countermeasures have been stated in “XI. Outlook for the Future Development of the Company” of “Section III Discussion and Analysis of Management of the Company”. Investors are kindly reminded to pay attention to possible investment risks. The profit distribution proposal approved by the Board of Directors is: Taking 2,614,694,040 as the basis, RMB 0.50 (tax included) of cash dividend and 0 bonus share (tax included) for every 10 shares will be distributed to all shareholders, and 0 share capitalized from the capital reserves will be distributed to all the shareholders for every 10 shares. Note: This document is a translated version of the Chinese version 2021 Annual Report (“2021年年度报告”), and the published annual report in the Chinese version shall prevail. The complete published Chinese 2021 Annual Report may be obtained at www.cninfo.com.cn. Table of Contents Section I Important Notes, Contents And Definitions ..............................................................................................................................2 Section II Company Profile and Key Financial Indicators .........................................................................................................................8 Section III Discussion and Analysis of Management of the Company .................................................................................................... 13 Section IV Corporate Governance.......................................................................................................................................................... 41 Section V Environment and Social Responsibility .................................................................................................................................. 61 Section VI Significant Events .................................................................................................................................................................. 62 Section VII Changes in Shares and Information about Shareholders ..................................................................................................... 75 Section VIII Information of Preferred Shares ......................................................................................................................................... 84 Section IX Information of Bonds ............................................................................................................................................................ 85 Section X Financial Report ..................................................................................................................................................................... 86 Directory of Reference Files I. The financial statements signed and sealed by the legal representative, the chief accountant and the person in charge of accounting institution (Accounting Officer) of the Company. II. The original copy of the Audit Report with the seal of the Accounting Firm and signed and stamped by Certified Public Accountants. III. Originals of all the Company's documents and announcements published on the website designated by China Securities Regulatory Commission during the reporting period. IV. Other related information. The said documents are prepared and placed at the Company's Securities Investment Department Definitions
I. Company Information
Accounting Firm Hired by the Company
□ Applicable √ Not applicable The financial adviser hired by the company to perform the continuous supervision in the reporting period □ Applicable √ Not applicable V. Key Accounting Data and Financial Indicators Whether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not □ Yes √ No
negative, and the audit report for the latest year shows that there is uncertainty about the Company's ability to continue operating □ Yes √ No The lower of net profit before and after deduction of non-recurring profit and loss is negative □ Yes √ No Total share capital of the Company as at the trading date preceding the disclosure:
buy-back, and whether the amount of the owners' equity is influenced from the end of the reporting period of the Company to the disclosure date of the annual report □ Yes √ No
VI. Key Financial Indicators by Quarter Unit: RMB
Company’s quarterly and semi-annual reports □ Yes √ No VII. Differences in Accounting Data Under Domestic and Foreign Accounting Standards 1. Differences of net profits and net assets in the financial reports disclosed according to the international accounting standards and Chinese accounting standards □ Applicable √ Not applicable During the reporting period of the company, there is no difference between the net profits and net assets in the financial reports disclosed according to international accounting standards and Chinese accounting standards. (2) Differences between the net profits and net assets in the financial reports disclosed according to the overseas accounting standards and Chinese accounting standards □ Applicable √ Not applicable During the reporting period of the company, there is no difference between the net profits and net assets in the financial reports disclosed according to overseas accounting standards and Chinese accounting standards. 3. Reasons for differences in accounting data under domestic and overseas accounting standards □ Applicable √ Not applicable Note: If the data audited by an overseas audit firm is adjusted for differences, the name of the overseas firm shall be indicated. VIII. Non-recurring Gains and Losses Items and Their Amounts √ Applicable □ Not applicable Unit: RMB
The Company did not have any details of other gain and loss items that meet the definition of non-recurring gains and losses. Description of defining the non-recurring gain and loss items, which are listed in Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as recurring gain and loss items □ Applicable √ Not applicable The Company did not classify any item of the non-recurring gain and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses, as recurring gain and loss items in the reporting period. Section III Discussion and Analysis of Management of the Company I. Industry Overview during the Reporting Period 1. The Overall Trend of the Industry (1) Normalized Pandemic Prevention and Control and Industrial Short-term Development Impacted by the Pandemic Data released by the National Bureau of Statistics shows that in 2021, the number of domestic tourists grew by 12.89% over the previous year to 3.25 billion, but was only at 54.11% of the 2019 level. The domestic tourism revenue was RMB 2919.1 billion, an increase of 30.98% year on year, but was only at 50.99% of the 2019 level. Affected by the COVID-19 pandemic, the domestic tourism market declined sharply in 2020, ending the continuous growth for 16 consecutive years since 2004. Though 2021 saw recovery to some extent, the market performance remained unsatisfactory. The COVID-19 pandemic had a great impact on the tourism industry, and it also driven away a large amount of speculative capitals in the society, cleared out most inferior suppliers that lack capitals and creativity, and forced enterprises to work on intelligent hardware, themes and atmosphere, content-based scenarios, and services and reception, thus facilitating the emergence of a number of products integrating elements such as culture, tourism, and technology. In the long run, enterprises with abundant resources, sufficient creativity, convenient transportation and good supporting facilities have stronger risk-resistance ability and market competitiveness.
obvious advantages in adjusting the industrial structure, creating job opportunities, and narrowing regional development gaps. China continuously issues various tourism promotion policies, thus facilitating the long-term high-quality development of the industry. In 2021, the State Council issued the “Development Plan for the Tourism Industry during the 14th Five-Year Plan Period” to deepen the integration of culture and tourism, as well as accelerate the construction of a strong tourism industry, thus achieving the higher-quality development of the tourism industry. According to the plan, by 2025, the tourism industry will continue to improve, with a more complete modern tourism system. There will be more effective, high-quality and flexible supply resources for tourism, and the consumption demand of the general public will be better met. The Ministry of Culture and Tourism has released documents such as the “Development Plan for the Culture Industry during the 14th Five-Year Plan Period”, “Development Plan for Culture and Tourism during the 14th Five-Year Plan Period”, and “Plan for Artistic Creation during the 14th Five-Year Plan Period”, so as to accelerate the improvement of the modern culture industry system, promote the high-quality development of the culture industry, and build a socialist country of a strong power of culture. (3) Constantly Developed Economy and Society for a Broad Space for Industrial Development Sustained economic development and social progress have boosted the long-term sound development of the tourism industry. Over the past 70 years, China has built a complete modern industrial system, created a unified free-circulation nationwide market, and constructed global leading infrastructure. China’s middle-income group has quickly grown to a large population. The period has witnessed continuously growing national economy, improved people’s living standards and enhanced purchasing power. According to global precedent, a country with per capita GDP between USD 10,000 and 30,000 experiences the fastest growth of consumption for pleasure such as tourism, leisure, culture and entertainment. In 2021, China’s per capita GDP reached USD 12,600, which was close to the threshold of high-income countries released by the World Bank. People has changed their consumption habit from material consumption to consumption for pleasure. Therefore, there is broad room for development in the culture and tourism industry. (4) Innovation-driven Development and Technology Empowerment The new round of technological revolution and industrial reform and the innovation-driven development strategy will continuously promote the creation of new products, new formats and new models and provide strong impetus for the transformation and upgrade of the culture and tourism industry. With the popularization of technologies such as big data, cloud computing, Internet of Things, blockchain and 5G, Beidou System, virtual reality, and augmented reality, smart tourism featuring digitization, network, and intelligence is gaining momentum. “Internet +” scenic spots, digital experience and products, and immersive and interactive experience have emerged to offer constantly improved culture and tourism experience. Technological innovation is constantly leading and supporting the development of culture and tourism industry and shaping a new landscape of the industry. 2. The Company's Market Position and Strengths in the Industry Songcheng Performance is China’s leading comprehensive culture and tourism service provider. It is one of China’s top 30 enterprises in the culture industry. It is approved as a national demonstration base for integration of culture and technology. Its business scope covers live performance and tourism service. The Company engages itself in segmented markets such as culture and art, tourism and leisure. The Company has created a unique business model of “Theme park + Cultural performance”, and operates more than 10 scenic spots nationwide and develops nearly 100 different shows. The Company leads the industry in the number of theaters, the number of seats, the number of performances, audience visits, operating efficiency, etc. “Songcheng” and “Romance Show” have established good brand awareness and have been widely praised in the industry, thus becoming the great strengths of the brand. II. The Principal Business of the Company during the Reporting Period (I) Vision and mission The Company upholds the business philosophy of “a drop of water in need shall be returned with a spring in deed”, to provide customers with heartwarming on-site entertainment experience. It is dedicated to telling China’s stories through the Chinese culture, promoting confidence of the nation, and striving to become the world’s top Company in cultural performing arts. (ii) The Principal Business of the Company In the reporting period, the Company was mainly engaged in live performance and tourism service. Live performance: The Company has created a unique business model of “Theme park + Cultural performance”. Relying on “Songcheng” and “Romance Show”, and based on specific scenarios such as theme parks, the Company provides tourists with high-quality culture and tourism products characterized by a variety of art performances. Projects under operation include Hangzhou Songcheng Park, Sanya Romance Park, Lijiang Romance Park, Jiuzhai Romance Park, Guilin Romance Park, Zhangjiajie Romance Park, Xi'an Romance Park, Shanghai Romance Park, etc. Several new projects are under construction or going to be constructed. Tourism services include light-asset output business and online sales of tickets. For light-asset output business, the Company provides partners with brand authorization, planning and design, directing and creation, entrusted operation and other services, so as to earn income through service fees and entrusted operation management fees. Light-asset projects under operation include Tanhe Ancient City, Yichun Mingyue Romance Park, and Zhengzhou Huangdi Romance Park. Online sales of tickets refer to online direct sales and distribution of tickets of performances and projects operated by the Company, and sales of joint tickets and ticket packages with third-party providers. III. Core Competitiveness Analysis After continuous efforts, the Company has established nationwide chain operation, with more than 40 million regular audiences per year in normal times. Our market share ranks among the top and continues to increase, with rising efficiency in resource allocation and brand influence. As a leading enterprise in China's performing arts industry, the Company's core competitiveness is mainly reflected in the following aspects: 1. Advantage in the Business Model Centering on performing arts in theme parks with creativity, the Company is different from traditional companies in performing arts and tourism. The business mode of "theme park + cultural performance" helps solve high performance costs, high traffic attraction costs, and low frequency of audience replacement faced by common performing arts enterprises without self-owned venues. For the tourism industry, the mode has overcome shortcomings of insufficient core competitiveness, poor reproducibility, excessive reliance on large-scale amusement equipment, low marginal effect, homogeneous services, and weak profitability of traditional enterprises. The Company is transforming from the Romance Show model characterized by “one show and one park” to the performance theme park model characterized by “multiple theaters, shows, activities and tickets”, a move to enrich business operations and aim for stronger competitiveness. 2. Brand advantages The Company has established cultural performance platforms nationwide, thus leading the industry in the numbers of projects, theaters and seats, performance sessions and viewers, and growing into the largest domestic art performance group with a widely recognized brand. The Company’s market reputation and strong brand influence have benefited its project expansion, resource integration, recruitment, and market expansion. 3. Advantages in locations The Company was one of the first to enter China's first-tier tourism and leisure destinations and most commercially developed cities, thus occupying locations with the most traffic in the surrounding areas. The Company thus has significant advantages in region and location. The location advantage has improved the convenience and reduced the costs for the Company to carry out businesses, and made it difficult for potential competitors to enter the local market. The Company will continue to operate steadily, implement the expansion strategy based on schedules, and continuously strengthen and consolidate the location advantage. 4. Advantage in Cultural Values The Company has always rooted its business in Chinese culture and the spirit of Chinese people. Through in-depth on-site investigations and extensive research, the Company has integrated cultural values, art and commerce, and shouldered its responsibility to deliver cultural values among people and tell Chinese stories through Chinese culture, thus creating many high-quality artistic works and achieving sound economic and social benefits. 5. Advantage in Creativity The Company has strong creativity capability and rich creativity practices. The barrier in creativity established over the years is difficult for its competitors to break. This top-level design featuring creativity ensures the success of the projects. After years of development, the Company has built a team with creativity, professionalism, dedication, passion and vitality. The Company has created a closed-loop industrial chain involving site selection, planning and design, construction investment, directing and creation, stage choreography, park operation, marketing, and service upgrade. Strong creativity and professional capabilities across the whole industrial chain ensure the Company’s differentiated operation and continuous innovation, so that the Company can better control costs, improve efficiency, and enhance profitability. 6. Advantage in Technology The Company persists in technology-driven development to innovate services through technology. It always pays close attention to technological progress, and has integrated virtual and real stage design with cutting-edge digital technologies to create a dream-like immersive scene and to bring tourists extraordinary experience. The Company continues to promote the deep integration of cultural creativity and technology to create culture and tourism products that feature “culture + tourism + technology” and culture and tourism scenarios that integrate reality with virtual technology, leading the development of the industry. 7. Platform advantages The Company aims to transform into a platform-based enterprise. With an open mind, it has encouraged free mobility and aggregation of personnel, content, resources and other factors, and takes the lead in integrating and reconstructing the upstream and downstream of the industrial chain, so as to realize high-efficiency operations at low costs. By transforming itself from a content-based company that emphasizes creativity to a platform-based one that integrates content creation, art appreciation and social contact, the Company has created greater value for itself and the cultural performance industry. 8. Advantage in Operation Over years of development, the Company has demonstrated abilities to respond quickly, implement plans efficiently and keeps pace with the times in its operations. The Company implements flexible marketing strategies, attaches great importance to the application of social media, we-media and private traffic, gives full play to the power of creativity, and carries out creative marketing online and offline to reach clients accurately at low costs. The Company is capable of making planning as well as providing reception and other services for a large number of tourists, so as to bring them extraordinary experience and make their trips joyful. IV. Main Business Analysis 1. Overview 2021 marked the first year of the 14th Five-Year Plan. In 2021, China led the world in economic development and pandemic prevention and control. However, the impact of the change in global landscape and the impact of the COVID-19 pandemic were unprecedented in a century. For one thing, the COVID-19 virus constantly mutated, and sporadic cases challenged the dynamic zero-COVID policy, resulting in normalized measures for pandemic prevention and control. For another, the instability in the global landscape continuously worried people and affected the recovery of consumer confidence. The complex, changeable external environment affected the consumption demand and the normal operation of the culture and tourism industry, which led to the sluggish recovery of the industry. Facing the complex environment and various challenges at home and abroad, the Company kept in mind its vision and mission, came up with creative ideas and adhered to innovation, gave full play to its advantages, so as to make reasonable and effective arrangements for the operation schedule of each project, thus showing strong resilience. During the reporting period, the Company achieved operating income of RMB 1,184.8646 million, a year-on-year increase of 31.27%; net profit attributable to shareholders of the listed Company was RMB 315.1308 million, a year-on-year increase of 117.98%; net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses was RMB 267.8097 million, a year-on-year increase of 115.15%. As the impact of the change in global landscape and the impact of the COVID-19 pandemic unseen in a century are expected to continue, the world is going to face more stress and more complicated risks and challenges in the long term. The Company is well aware of this situation, and has prepared itself for a prolonged difficult time. Facing the uncertainty of the future, the Company should not only maintain its advantages, but also pursue the development, and it should insist on doing things within the its capabilities. During the reporting period, the Company innovated the management of Hangzhou Songcheng Park and Shanghai Romance Park, continuously adjusted spatial layout, innovated diverse content, optimized the visiting routes, and promoted the breakthrough and upgrade of the cultural performance park model, so as to lay the foundation for the operation recovery of the Company in the short term; the Company integrated advantageous resources, increased investment, and accelerated the construction of technology-infused theme parks, so as to ensure the medium-term development of the Company; the Company strengthened market research and drew upon experiences, carried out drastic integration and optimization from the aspects of industrial layout, project layout, light asset expansion, etc., and accelerated the implementation of platform development strategy, so as to make sufficient preparations for the Company's long-term development. The Company thoroughly reconstructed the organizational structure, personnel structure and management process, and strengthened fine operation management to secure the Company's overall development. The key tasks carried out by the Company during the reporting period are as follows: (1) Promote the breakthrough and upgrade of the cultural performance park mode The Company used Hangzhou Songcheng Park and Shanghai Romance Park as models to seek new changes. It continued to make efforts in terms of spatial layout, content and products, visiting routes, and event marketing, thus promoting the continuous breakthrough and upgrade of the cultural performance park model. Based on the advantages as the headquarters, Hangzhou Songcheng Park actively explored the mode featuring multiple theaters, multiple types and multiple sessions for performances, and accelerated content enrichment and diversification. The outdoor version of “The Romantic Show of Song Cheng”, the real-scene performance “The Enchanting Bagpipe” and the light-and-shadow show “My All” made a stunning appearance. The total duration of all shows increased from 120 minutes to 300 minutes. The park also introduced famous plays such as “Thunderstorm” and “Worry-free Grocery Store”, and jointly hosted the 2nd “Zhi Sheng” Mental Games and “Zhi Sheng” Mental Sports Industry Expo with the Hangzhou branch of Chinese Chess Academy to effectively meet the needs of various groups including individual tourists, parents and children as well as students. The Company adjusted and optimized visiting routes so that the duration of stay of tourists in the park has been increased from 3 hours to 6 hours; special themed events for young people such as the Halloween-themed “Night in Songcheng” and “Night for the celebration of Christmas and New Year” have been launched, thus setting new records in the number of sessions and tourists. In 2021, Hangzhou Songcheng Park was awarded as one of “First batch of national-level nighttime cultural and tourist consumption cluster areas”, the “Place for experiencing Song Dynasty culture and Hangzhou lifestyle”, “Excellent study trip base (camp) in Hangzhou for primary and middle school students”, etc. During the Spring Festival, the May Day holiday and the National Day holiday, the total number of visitors, the total number of performance sessions, operating income, the proportion of individual tourists, and the duration of stay of tourists in Hangzhou Songcheng Park were all close to or exceeded those of the same period in 2019. Shanghai Romance Park has a large construction area, high construction standards, and strict requirements for approval. It successful completion and opening has already been a great success. During the May Day holiday, Shanghai Romance Park achieved a revenue of over RMB 25 million, receiving 179,000 tourists. The consumption of each visitor reached a new high among that of all theme parks of Songcheng, thus breaking the record of the opening year of Songcheng during the May Day holiday. During the National Day holiday, Shanghai Romance Park put on more than 50 sessions of shows such as the live show by the Huangpu River （未完）  |