Affected by the epidemic, Happy Animation has financial difficulties and cannot pay wages on time

by:Ennas      2022-01-18
Shenzhen Happy Animation Co., Ltd. issued the 'Announcement of Risk Reminders Concerning Major Uncertainties in Continued Operation Capability'. The content of the announcement is as follows: Shenzhen Happy Animation Co., Ltd. (hereinafter referred to as the company) is engaged in the production of movies and TV programs in the culture, sports and entertainment industries, and its products are the production and distribution of animation TV series, animation movies, and preschool resources video. And animation derivative product design and sales. Since the outbreak of the novel coronavirus pneumonia epidemic (hereinafter referred to as the epidemic), it has had a greater impact on the production and operation of the company (including its subsidiaries). 1. Due to the impact of the epidemic, the company's and its subsidiaries' derivatives sales business, IP authorization business, animation commissioned production business and issuance business have seen a significant decline in orders and revenue. 2. Due to the impact of the epidemic, the company's financial status has led to a decline in business revenues in various segments of the company, slow collection of customer accounts receivable, and shortage of operating funds. 3. Due to the impact of the epidemic, the company’s business has declined, and funding is difficult. It is unable to pay employees’ wages on time and has a high employee turnover rate. 4. About the company's subsidiaries Since its establishment, Shenzhen Zhongyinglian Technology Co., Ltd. (hereinafter referred to as Zhongyinglian), a subsidiary of the company, has not appointed or appointed financial personnel and other management personnel to it, and the company cannot be responsible for Zhongyinglian. People or their controllers get in touch and cannot obtain their financial data. According to Zhongyinglian employees, the suspected violation of the law may be investigated and tried by the public security organs. The company will follow up the progress of Zhongyinglian's affairs and fulfill the obligation of information disclosure. 5. Disclosure of the company's 2019 annual report. The company has difficulties in payment of funds, unable to pay employees' wages and office space rent on time, staff turnover, office space restricted by the landlord, financial information of the subsidiary Zhongyinglian cannot be obtained, and information provided by the Hong Kong subsidiary for epidemic control The slowness and the low rate of response to current accounts and many other issues have slowed the progress of the financial audit. The 2019 annual report has not yet been disclosed. According to the author's review, Happy Animation has not had a record of the production and production of well-known animation works in recent years.
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