Changcheng Film and Television Co., Ltd. (hereinafter referred to as "the Company") and all members of the Supervisory Committee guarantee that the content of this information disclosure is true, accurate, and complete, without false records, misleading statements, or significant omissions.
On April 22, 2021, the Company issued a notice to convene the seventh meeting of the seventh Supervisory Committee via email and personal delivery. The meeting was held on April 27, 2021, at 13:30 in the conference room of the Company located at 683 Wen'er West Road, Xixi Creative Industry Park, Hangzhou, Zhejiang Province. Three supervisors were expected to attend, and all three were present. The meeting was chaired by Mr. Zheng Xilai, the chairman of the Supervisory Committee. The convening and holding of the meeting complied with the provisions of the Company Law and other relevant laws, regulations, and the Articles of Association.
After careful deliberation by the attending supervisors, the following resolutions were made by voting:
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The "2020 Annual Supervisory Committee Work Report" was reviewed and approved. This proposal is subject to approval at the Company's 2020 annual shareholders' meeting. Voting results: 3 votes in favor, 0 votes against, 0 abstentions.
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The "2020 Annual Financial Settlement Report" was reviewed and approved. According to the audit by Zhongxinghua Accounting Firm (Special General Partnership), in 2020, the Company achieved operating revenue of 160,732,270.27 yuan, a decrease of 67.25% compared to the previous year; total profit was -224,487,910.15 yuan, an increase of 75.90% year-on-year; the net profit attributable to shareholders of the listed company was -250,216,028.23 yuan, an increase of 73.52% year-on-year. The reasons for the changes are as follows:
- The TV dramas "Premier Zhou Enlai" and "Blood Gunner," invested and filmed by the Company, obtained the "Domestic TV Drama Distribution License" at the end of 2020. The Company's distribution department is currently negotiating distribution matters with CCTV and major TV stations, and formal distribution contracts have not yet been signed. During the reporting period, the Company's film and television business mainly focused on distributing works filmed in previous years.
- Due to the impact of the COVID-19 pandemic, the tourism revenue of the nine travel agencies under the Company declined year-on-year, and the visitor capacity of the Marenqifeng Scenic Area was limited due to local government visitor flow control measures.
- Given that the accounting firm with securities and futures qualifications audited the Company, it had already made provisions for goodwill impairment for subsidiaries that did not meet performance expectations in 2019. There were no significant goodwill impairment provisions during the reporting period. This proposal is subject to approval at the Company's 2020 annual shareholders' meeting. Voting results: 3 votes in favor, 0 votes against, 0 abstentions.