[Company Profile and Key Financial Indicators](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides the company's fundamental information and a detailed analysis of its key accounting data and financial performance for the reporting period [Company Information](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This chapter provides the company's basic business registration information, including its Chinese and English names, legal representative, contact details for the board secretary, and registered and office addresses - The company's full name is "China Wen Tian Di Publishing & Media Group Co., Ltd.", abbreviated as "China Wen Media", with **Wu Xinggen** as the legal representative[8](index=8&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2021, the company's operating revenue increased by 4.45%, and net profit attributable to shareholders surged by 36.64%, primarily due to a significant non-recurring investment gain of **850 million yuan**; however, excluding non-recurring items, net profit attributable to shareholders decreased by 30.77%, indicating a decline in core business profitability, while net cash flow from operating activities significantly improved, increasing by 1960.11% 2021 Semi-Annual Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 5,167,778,861.28 | 4,947,681,671.36 | 4.45% | | Net Profit Attributable to Shareholders | 1,174,043,172.63 | 859,241,526.49 | 36.64% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items | 503,685,361.86 | 727,561,822.55 | -30.77% | | Net Cash Flow from Operating Activities | 461,722,332.74 | 22,412,555.84 | 1960.11% | | **Asset Status** | **End of Current Period (Yuan)** | **End of Prior Year (Yuan)** | **YoY Change (%)** | | Net Assets Attributable to Shareholders | 15,587,739,292.15 | 15,158,981,164.97 | 2.83% | | Total Assets | 28,717,249,688.28 | 24,370,351,033.56 | 17.84% | 2021 Semi-Annual Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.87 | 0.63 | Increase 38.10% | | Basic EPS Excluding Non-Recurring Items (Yuan/share) | 0.37 | 0.54 | Decrease 31.48% | | Weighted Average Return on Net Assets (%) | 7.58 | 5.99 | Increase 1.59 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Items (%) | 3.25 | 5.07 | Decrease 1.82 percentage points | - Total non-recurring gains and losses for the reporting period amounted to **670 million yuan**, primarily from the investment income generated by subsidiary StarTimes' associate disposing of its equity in Moonton Holdings Limited, contributing **850 million yuan** to the company's earnings[17](index=17&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section offers an in-depth review of the company's industry, core competencies, operational performance, and potential risks during the reporting period [Industry and Main Business Overview During the Reporting Period](index=8&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's main business covers the entire industry chain, from traditional publishing (books, newspapers, periodicals, printing, distribution) to new formats (games, new media, film, investment); the publishing and media industry is traditional, heavily influenced by policies and raw material prices, but is integrating with new publishing, presenting both opportunities and challenges, while Jiangxi Province's cultural strength development plan provides a favorable policy environment for the company's growth - The company is a large-scale multi-media, platform-based, full-industry-chain publishing and media company, with businesses covering three major segments: traditional publishing, supply chain extension (trade, logistics), and new formats (games, online education, film, investment)[18](index=18&type=chunk) - The industry trend is the integrated development of traditional and new publishing, with opportunities outweighing challenges, further supported by Jiangxi Province's cultural strength development policies[19](index=19&type=chunk) [Core Competitiveness Analysis During the Reporting Period](index=9&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness spans brand, scale, full industry chain, channels, new media business, and talent; among national listed peers, it ranks first in net profit and net assets, second in total assets, and third in operating revenue, owning multiple renowned publishing brands and a leading national distribution network, and through its subsidiary StarTimes, holds a significant position in the global gaming market, forming an integrated R&D and operations competitive advantage - Among 22 listed publishing and media companies nationwide, the company ranks **first in net profit, net profit attributable to shareholders, net assets, and net assets attributable to shareholders**, **second in total assets**, and **third in operating revenue**[20](index=20&type=chunk) - The company possesses a **full industry chain** encompassing editing, printing, distribution, and supply, alongside strategic layouts in emerging businesses like IoT, new media, and internet gaming, fostering effective synergy between traditional and new formats[20](index=20&type=chunk) - Subsidiary StarTimes operates in **over 150 countries and regions globally**, with **90% of its revenue from overseas**, demonstrating significant integrated R&D and operations, and international competitive advantages[20](index=20&type=chunk)[22](index=22&type=chunk) [Discussion and Analysis of Operations](index=10&type=section&id=%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the first half of 2021, the company's operations showed dual characteristics: traditional main businesses like publishing and distribution grew steadily, with revenue increases of **14.82%** and **8.95%** respectively, acting as a "ballast stone"; however, the significant increase in net profit primarily stemmed from a **637 million yuan** non-recurring gain from subsidiary StarTimes' associate disposing of equity, and excluding this, core business profit actually declined, while the company also completed an equity investment in Xinhua Zhuyun, a big data AI technology company - Traditional publishing main business developed steadily, with publishing and distribution revenue increasing by **14.82%** and **8.95%** respectively in the first half[23](index=23&type=chunk) - The company's net profit achieved significant growth, primarily due to a non-recurring gain from subsidiary StarTimes' associate disposing of its equity in Moonton Holdings Limited, impacting the company's net profit by **637 million yuan**[24](index=24&type=chunk)[25](index=25&type=chunk) - The company invested in Xinhua Zhuyun, a big data AI technology company under Xinhua Net, acquiring a **6% equity stake** through public bidding to deepen integrated publishing development[24](index=24&type=chunk) [Key Operating Conditions During the Reporting Period](index=11&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) During the reporting period, several financial accounts experienced significant changes: selling expenses surged by **89.48%** due to new game promotions, while investment income soared by **1602.62%** due to equity disposal, fundamentally altering the profit structure; on the asset and liability side, accounts receivable increased by **77.30%** due to seasonality, long-term equity investments rose by **56.23%** due to increased investment income, and other current liabilities surged by **426.48%** due to the issuance of ultra-short-term financing bonds Analysis of Major Financial Statement Item Changes | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change Ratio (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 586,290,637.32 | 309,423,130.16 | 89.48% | Increased marketing and promotion expenses for subsidiary StarTimes' new game projects | | Investment Income | 920,596,456.55 | 54,069,315.40 | 1602.62% | Investment income from subsidiary StarTimes' associate disposing of equity | | Net Cash Flow from Operating Activities | 461,722,332.74 | 22,412,555.84 | 1960.11% | Increased sales collection year-on-year | | Income Tax Expense | 226,445,886.85 | 49,420,911.17 | 358.20% | Increased total profit of subsidiary StarTimes | - The company's profit sources underwent significant changes, with investment income reaching **921 million yuan**, a **1602.62% year-on-year increase**, primarily due to **850 million yuan** in non-recurring gains from subsidiary StarTimes' associate disposing of equity[28](index=28&type=chunk)[29](index=29&type=chunk) Changes in Major Asset and Liability Status | Item Name | End of Current Period Amount (Yuan) | Change Ratio from End of Prior Year (%) | Explanation | | :--- | :--- | :--- | :--- | | Accounts Receivable | 1,255,044,349.30 | 77.30% | Primarily due to seasonal factors in spring textbook and supplementary material collections | | Long-Term Equity Investments | 2,519,009,860.40 | 56.23% | Primarily due to investment income from subsidiary StarTimes' associate disposing of equity | | Other Current Liabilities | 2,830,419,577.45 | 426.48% | Due to the issuance of ultra-short-term financing bonds in the current period | | Deferred Income Tax Liabilities | 104,727,190.63 | 907.77% | Primarily due to increased taxable temporary differences from subsidiary StarTimes' equity method adjustments for associate's profit/loss | - The company's external equity investment for the current period was **314 million yuan**, a substantial **660.80% increase** from **41.25 million yuan** in the prior period, primarily for equity investments in entities like Xinhua Zhuyun Technology Co., Ltd. and capital increases for subsidiaries[34](index=34&type=chunk)[35](index=35&type=chunk) [Potential Risks](index=16&type=section&id=%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces key risks including potential impacts on profitability from industry and tax policy adjustments, cost control challenges due to rising raw material prices like paper, the risk of traditional business transformation falling short amid digital publishing disruption, and intensifying domestic and international market competition - The company faces four main risks: - **Policy Risk**: Adjustments in industry and tax policies - **Cost Risk**: Fluctuations in raw material prices such as paper and ink - **Transformation Risk**: Traditional business transformation and upgrading may fall short of expectations amidst the impact of digital publishing - **Competition Risk**: Intensified competition in the domestic and international publishing and media industries[40](index=40&type=chunk) [Corporate Governance](index=16&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section details changes in the company's board of directors, supervisors, and senior management, highlighting key personnel transitions [Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Post-reporting period, the company experienced significant personnel changes; in August 2021, former Chairman Zhao Dongliang resigned due to health and work adjustments, and Mr. Wu Xinggen was elected as the new Chairman and legal representative, with his Vice Chairman position removed - In August 2021, Zhao Dongliang resigned as Chairman, and **Wu Xinggen** was elected as the **new Chairman and legal representative**[43](index=43&type=chunk) [Environmental and Social Responsibility](index=18&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%8E%AF%E5%A2%83%E4%B8%8E%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) This section outlines the company's adherence to environmental regulations and its active contributions to social welfare initiatives, including rural revitalization [Environmental Information Overview](index=18&type=section&id=%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) The company and its subsidiaries strictly comply with environmental regulations; its main printing subsidiary has obtained **ISO 14001** environmental management system certification and China Environmental Labeling Product Certification, incurring no environmental administrative penalties during the reporting period - The company's wholly-owned subsidiary, Jiangxi Xinhua Printing Development Group Co., Ltd., has obtained **ISO 14001 environmental management system certification** and **China Environmental Labeling Product Certification**[46](index=46&type=chunk) [Specific Actions to Consolidate Poverty Alleviation Achievements, Rural Revitalization, etc.](index=18&type=section&id=%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities, with a total investment of **1.3957 million yuan** by the company and its subsidiaries in the first half of 2021 to support rural revitalization and related initiatives - In the first half of 2021, the company and its subsidiaries invested a total of **1.3957 million yuan** to support rural revitalization efforts[48](index=48&type=chunk) [Significant Matters](index=19&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section reports on the company's ongoing fulfillment of commitments made during past major asset restructurings by both the controlling shareholder and original StarTimes shareholders [Fulfillment of Commitments](index=19&type=section&id=%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company and related parties continue to fulfill commitments made during major asset restructurings in 2010 and 2015; long-term commitments by the controlling shareholder regarding avoiding horizontal competition and regulating related-party transactions remain valid and have not been violated, while commitments by original shareholders of StarTimes regarding tenure and non-compete clauses are also being fulfilled - The controlling shareholder, Publishing Group, continues to fulfill **5 long-term commitments** made during the 2010 restructuring, including avoiding horizontal competition, regulating related-party transactions, and ensuring the listed company's independence, with no violations observed[51](index=51&type=chunk)[52](index=52&type=chunk) - In the 2015 acquisition of StarTimes, original shareholders Tang Binsen and others continue to fulfill **6 commitments**, including tenure (at least 60 months at StarTimes) and non-compete clauses (during tenure and for 2 years post-departure), with no violations observed[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Share Changes and Shareholder Information](index=28&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section presents the company's shareholder structure, including the total number of shareholders and the holdings of its top five investors [Shareholder Information](index=28&type=section&id=%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **39,274** common shareholders; the controlling shareholder, Jiangxi Provincial Publishing Group Company, holds a **55.76%** stake, indicating a stable equity structure Top Five Shareholders' Holdings as of the End of the Reporting Period | Shareholder Name | Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Jiangxi Provincial Publishing Group Company | 755,541,032 | 55.76 | State-owned Legal Person | | HKSCC Nominees Limited | 94,879,964 | 7.00 | Unknown | | Xie Xianlin | 29,230,000 | 2.16 | Domestic Natural Person | | Xu Xin | 18,859,098 | 1.39 | Domestic Natural Person | | Central Huijin Asset Management Co., Ltd. | 15,260,200 | 1.13 | Unknown | [Bond-Related Information](index=30&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section provides an overview of the company's outstanding non-financial enterprise debt financing instruments, including their balances, credit ratings, and key financial indicators [Non-Financial Enterprise Debt Financing Instruments](index=31&type=section&id=%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) As of the end of the reporting period, the company's outstanding bonds included 2 medium-term notes and 4 ultra-short-term financing bonds, totaling **3.3 billion yuan**; all bonds are traded on the national interbank bond market, with an **AAA** corporate credit rating and a stable outlook, and no changes to the repayment plan Overview of Outstanding Non-Financial Enterprise Debt Financing Instruments | Bond Abbreviation | Code | Maturity Date | Bond Balance (Yuan) | | :--- | :--- | :--- | :--- | | 18 China Wen Tian Di MTN001 | 101801154 | 2021-10-17 | 500,000,000.00 | | 19 China Wen Tian Di MTN001 | 101900269 | 2022-03-06 | 500,000,000.00 | | 20 China Wen Tian Di SCP006 | 012004435 | 2021-07-03 | 500,000,000.00 | | 21 China Wen Tian Di SCP001 | 012100748 | 2021-11-27 | 1,300,000,000.00 | | 21 China Wen Tian Di SCP002 | 012101288 | 2021-09-26 | 500,000,000.00 | | 21 China Wen Tian Di SCP003 | 012102356 | 2021-12-25 | 500,000,000.00 | - The company's corporate credit rating is **AAA**, with a **stable outlook**, and the bond credit rating is **AAA**[74](index=74&type=chunk) - During the reporting period, the company's asset-liability ratio increased from **36.94% to 44.83%**, primarily due to the issuance of ultra-short-term financing bonds, while the interest coverage ratio significantly rose from **13.72 to 18.59**, mainly influenced by non-recurring investment income[77](index=77&type=chunk) [Financial Report](index=34&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section provides detailed notes to the consolidated financial statements, explaining the composition and changes in key accounts, including long-term equity investments, goodwill, and segment performance [Notes to Consolidated Financial Statements](index=77&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) Notes to the financial statements detail the composition and changes of various asset, liability, and profit/loss accounts; key insights include goodwill primarily from the StarTimes acquisition, a significant increase in long-term equity investments due to the disposal of an associate's assets, confirming the source of non-recurring income, and segment information showing distribution and publishing as major revenue contributors [Long-Term Equity Investments](index=91&type=section&id=%E9%95%BF%E6%9C%9F%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84) At the end of the reporting period, the company's long-term equity investments amounted to **2.519 billion yuan**, a significant increase from **1.612 billion yuan** at the beginning of the period; the primary growth came from the associate "Beijing Innovation Yizhou Investment Center (Limited Partnership)", which recognized **878 million yuan** in investment gains under the equity method, consistent with its gain from disposing of Moonton equity Major Associate Investment Changes | Investee | Beginning Balance (Yuan) | Investment Gains/Losses Recognized under Equity Method (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Beijing Innovation Yizhou Investment Center (Limited Partnership) | 116,202,860.72 | 877,686,289.16 | 962,829,603.06 | | Xinhua United Distribution Co., Ltd. | 409,708,647.49 | 8,608,276.06 | 418,316,923.55 | | Jiangxi University Press Co., Ltd. | 131,768,654.98 | 6,698,179.21 | 138,466,834.19 | [Goodwill](index=101&type=section&id=%E5%95%86%E8%AA%89) As of the end of the reporting period, the company's goodwill had a carrying amount of **2.466 billion yuan**, with the vast majority (**2.438 billion yuan**) originating from the acquisition of subsidiary Beijing StarTimes Technology Co., Ltd.; impairment provisions totaled **28.11 million yuan**, mainly for Beijing Baifen Online and Jiangxi China Wen Media Network Technology - The company's goodwill carrying amount is approximately **2.466 billion yuan**, of which **2.438 billion yuan** was formed during the acquisition of Beijing StarTimes Technology Co., Ltd[233](index=233&type=chunk) [Segment Information](index=148&type=section&id=%E5%88%86%E9%83%A8%E4%BF%A1%E6%81%AF) The company reports its business across seven segments; in terms of main business revenue, distribution (**2.402 billion yuan**), publishing (**1.839 billion yuan**), and material trade (**961 million yuan**) are the three largest segments, while regarding profitability, publishing and new format businesses contribute significantly to gross profit Reported Segment Financial Information (Unit: 100 million Yuan) | Item | Publishing Business | Distribution Business | Logistics Business | Printing and Packaging | Material Trade | New Formats | Other | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Main Business Revenue** | 18.39 | 24.02 | 1.35 | 1.26 | 9.61 | 8.30 | 2.81 | 15.21 | 50.53 | | **Main Business Cost** | 15.11 | 14.36 | 0.77 | 1.04 | 9.45 | 3.65 | 2.35 | 14.75 | 31.98 |