Financial Performance - The company's operating revenue for Q3 2022 was ¥45,366,714.49, a decrease of 22.29% compared to the same period last year[5]. - The net profit attributable to shareholders for Q3 2022 was ¥2,638,367.14, down 36.77% year-on-year[5]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for Q3 2022 was ¥889,013.81, a decline of 69.10% compared to the same period last year[9]. - The basic earnings per share for Q3 2022 was ¥0.0043, a decrease of 35.82% year-on-year[9]. - Total operating revenue for Q3 2022 was ¥159,875,831.90, a decrease of 1.99% compared to ¥162,200,410.68 in Q3 2021[33]. - The total operating profit for the current period is 9,309,992.10 RMB, compared to 18,097,344.68 RMB in the previous period, reflecting a decrease of approximately 48.6%[37]. - The net profit attributable to the parent company's shareholders is 8,484,729.55 RMB, down from 14,001,269.62 RMB, indicating a decline of about 39.4%[39]. - The total comprehensive income for the current period is 5,206,299.23 RMB, compared to 13,345,637.49 RMB in the previous period, a decline of approximately 61.0%[39]. - The company reported operating income of 10,062,703.52 RMB, down from 17,996,317.27 RMB, which is a decrease of about 44.1%[37]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,162,360,062.62, a decrease of 3.55% from the end of the previous year[9]. - As of September 30, 2022, the company's total current assets amounted to ¥828,316,334.30, a decrease from ¥859,184,911.65 at the end of 2021, reflecting a decline of approximately 3.9%[24]. - The company's cash and cash equivalents were reported at ¥232,594,374.82, down from ¥359,535,909.92, indicating a decrease of about 35.3%[24]. - Total assets decreased to ¥1,162,360,062.62 from ¥1,205,119,346.90 year-over-year[29]. - Non-current assets totaled ¥334,043,728.32, down from ¥345,934,435.25 in the previous year[29]. - Total liabilities decreased to ¥108,127,084.46 from ¥156,092,667.97 year-over-year[29]. - The company’s total equity increased to ¥1,054,232,978.16 from ¥1,049,026,678.93 in the previous year[29]. - The company’s financial position reflects a significant reduction in current liabilities, which totaled ¥103,125,171.66 compared to ¥148,133,034.51 in the previous year[29]. Cash Flow - The company reported a net cash flow from operating activities of -¥129,625,478.42 for the year-to-date period[9]. - Cash flow from operating activities shows a net outflow of -129,625,478.42 RMB, compared to -13,980,060.28 RMB in the previous period, indicating a significant increase in cash outflow[42]. - The cash inflow from operating activities totaled 815,677,123.09 RMB, compared to 789,732,155.11 RMB in the previous period, showing an increase of approximately 3.4%[42]. - The cash outflow for operating activities was 945,302,601.51 RMB, compared to 803,712,215.39 RMB, indicating an increase of about 17.6%[42]. Business Developments - The company completed a major asset restructuring transaction in October 2022, which is not reflected in the current financial data[4]. - The decline in net profit was primarily attributed to the impact of the pandemic, which led to a decrease in gross profit[11]. - The company plans to acquire 100% equity of several companies, including Beijing Bailong Green Technology Co., Ltd. and others, through a share issuance, raising up to ¥300 million in supporting funds[19]. - The acquisition is expected to enhance the company's total assets, operating income, and net profit attributable to shareholders, thereby improving its financial condition and profitability[20]. - The company received approval from the China Securities Regulatory Commission for the asset purchase and fundraising plan on September 30, 2022[21]. - The company’s total liabilities and equity structure will be positively impacted post-acquisition, enhancing its market position in the tourism sector[20]. - The company’s major business prior to the acquisition focused on animation and related industries, which will be diversified with the new tourism assets[20]. Expenses - Total operating costs increased to ¥131,482,324.85, up 5.48% from ¥124,619,268.12 in the previous year[33]. - Operating costs included ¥97,423,116.64 in operating expenses, which rose significantly from ¥79,002,505.04 in the same period last year[33]. - Research and development expenses for Q3 2022 were ¥3,005,365.36, slightly down from ¥3,272,925.48 in Q3 2021[33]. - The company recorded a tax expense of 4,856,404.29 RMB, slightly up from 4,650,679.78 RMB, reflecting an increase of about 4.4%[37].

Financial Performance - The company's operating revenue for the first half of 2022 was ¥114,509,117.41, representing a 10.30% increase compared to ¥103,817,422.61 in the same period last year[24]. - The net profit attributable to shareholders for the first half of 2022 was ¥5,846,362.41, a decrease of 40.52% from ¥9,828,349.00 in the previous year[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥2,702,020.19, down 68.25% from ¥8,510,717.87 in the same period last year[24]. - The net cash flow from operating activities was -¥118,773,624.72, a significant decline compared to ¥3,707,287.61 in the previous year, representing a decrease of 3,303.79%[24]. - Basic earnings per share for the first half of 2022 were ¥0.0094, down 40.88% from ¥0.0159 in the same period last year[27]. - The diluted earnings per share were also ¥0.0094, a decrease of 40.88% compared to ¥0.0159 in the previous year[27]. - The weighted average return on net assets was 0.54%, a decrease of 0.41 percentage points from 0.95% in the previous year[27]. - The company achieved total revenue of 114.51 million yuan and a net profit attributable to shareholders of 5.85 million yuan in the first half of 2022[57]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 2.70 million yuan[57]. - The company reported a net loss of CNY 683,570,450.04, slightly improved from a loss of CNY 689,416,812.45[122]. - The total comprehensive income for the first half of 2022 was CNY 2,176,842.33, contrasting with a total comprehensive loss of CNY -6,624,102.05 in the previous year[137]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,204,963,151.40, a slight decrease of 0.01% from ¥1,205,119,346.90 at the end of the previous year[24]. - The net assets attributable to shareholders at the end of the reporting period were ¥1,078,508,369.57, reflecting a 0.55% increase from ¥1,072,662,007.16 at the end of the previous year[24]. - Total current assets amount to 864,275,270.71 RMB, slightly up from 859,184,911.65 RMB at the beginning of the period[117]. - The total liabilities decreased from CNY 309,020,863.91 to CNY 277,661,343.86, a reduction of 10.1%[127]. - The total liabilities decreased from CNY 156,092,667.97 to CNY 154,083,667.71, a decline of about 1.3%[122]. - The company’s total liabilities were reported at CNY 697,707,815.00, showing a manageable debt level[172]. Cash Flow - The net cash flow from operating activities turned negative at CNY -118,773,624.72, a decline of 3,303.79% compared to CNY 3,707,287.61 in the previous year[68]. - The company's cash and cash equivalents decreased by 32.13% to CNY 244,004,060.76 from CNY 359,535,909.92, primarily due to payments related to various obligations[72]. - The ending cash and cash equivalents balance was CNY 243,402,060.76, down from CNY 279,261,289.03 at the end of the first half of 2021[143]. - The net cash flow from financing activities was CNY -775,239.99, worsening from CNY -354,805.16 in the previous year[143]. - The net increase in cash and cash equivalents for the period was -210,113,681.27 RMB, a decrease from -13,241,980.55 RMB in the previous period, reflecting a worsening cash position[144]. Business Strategy and Operations - The company continues to focus on its core business in animation and its derivatives, with no significant changes reported during the period[32]. - The company has established a complete animation industry chain, leveraging its IP content advantages to create a "content + channel" business model[33]. - The company is a leading player in the new media animation sector, collaborating with telecom operators to provide high-quality original content and distribution channels[34]. - The company has expanded its digital cultural products design and distribution, enhancing its commercial diversification through e-commerce channels[35]. - The company has implemented a "animation + cultural tourism" strategy, providing integrated solutions for tourism destinations using its animation IP resources[43]. - The company is committed to a "Cultural +" strategy, integrating culture with tourism and technology to create innovative projects[49]. - The company plans to deepen the integration of cultural IP with tourism and technology, enhancing visitor experiences through projects like the immersive art boat tour in Phoenix Ancient City[53]. - The company is focusing on optimizing its organizational structure and management systems to enhance business efficiency and team performance[56]. Market and Industry Trends - The company faces significant risks from macroeconomic fluctuations, with ongoing pressures due to global economic slowdowns and uncertainties related to the pandemic[79]. - Increased competition in the entertainment sector is leading to a more complex market landscape, requiring the company to innovate and enhance its core competitiveness[79]. - The rapid pace of product development and innovation is critical, especially with the integration of emerging technologies like 5G and AI, which the company must leverage to stay relevant[79]. - The telecommunications industry reported a cumulative revenue of 665 billion yuan from January to May 2022, representing a year-on-year growth of 8.5%, with emerging services like IPTV and cloud computing showing rapid revenue growth[44]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 36,078, with no changes in the total number of shares or capital structure[106]. - Zhejiang Xiangyuan Industrial Co., Ltd. holds 206,788,258 shares, accounting for 33.39% of total shares[107]. - Pacific Securities Co., Ltd. decreased its holdings by 2,800,000 shares, now holding 37,249,229 shares, representing 6.01%[107]. - Chen Fashu increased his holdings by 15,227,518 shares, now holding 26,505,320 shares, which is 4.28%[107]. Research and Development - Research and development expenses decreased by 10.12% to CNY 2,029,411.75 from CNY 2,257,792.77, reflecting reduced investment in R&D[68]. - The company aims to enhance its core competitiveness by focusing on high-concept original content and technology R&D, establishing a high-end animation production system[50]. Regulatory and Compliance - The cultural industry is subject to strict regulatory oversight, and the company will adapt to policy changes to mitigate risks associated with industry regulations[79]. - The company has applied to suspend the review of a restructuring application with the China Securities Regulatory Commission, which poses potential approval risks for future transactions[79].

Financial Performance - The company's operating revenue for Q1 2022 was ¥34,687,094.68, representing a decrease of 11.27% compared to the same period last year[6] - Net profit attributable to shareholders was ¥3,081,470.74, down 44.70% year-over-year[6] - The net profit after deducting non-recurring gains and losses was ¥1,002,547.69, a decline of 79.39% compared to the previous year[6] - Basic earnings per share were ¥0.005, reflecting a decrease of 44.44% year-over-year[6] - Total operating revenue for Q1 2022 was ¥34,687,094.68, a decrease of 11.4% from ¥39,090,952.07 in Q1 2021[29] - Net profit for Q1 2022 was ¥284,111.11, a significant decline of 91.4% compared to ¥3,318,280.46 in Q1 2021[32] - The total comprehensive income attributable to the parent company for Q1 2022 was ¥3,081,470.74, down from ¥5,572,719.44 in Q1 2021[34] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,197,444,616.96, a decrease of 0.64% from the previous year[9] - The total current assets amount to approximately CNY 853.20 million, a slight decrease from CNY 859.18 million in the previous period, representing a decline of about 0.8%[24] - The company's total assets decreased from CNY 1,205.12 million to CNY 1,197.44 million, a decline of about 0.6%[24] - The total liabilities decreased from CNY 156.09 million to CNY 148.13 million, reflecting a reduction of about 5.9%[27] - The company's long-term receivables increased from CNY 121.40 million to CNY 123.50 million, an increase of about 1.7%[24] - The company’s non-current liabilities decreased from CNY 7.96 million to CNY 7.27 million, a reduction of approximately 8.7%[27] Cash Flow - The net cash flow from operating activities was negative at -¥79,447,770.36, indicating increased cash payments related to operating activities[6] - Cash flow from operating activities was ¥163,531,240.65 in Q1 2022, down 44.5% from ¥294,684,776.85 in Q1 2021[34] - The net cash flow from operating activities was -79,447,770.36, compared to -30,031,477.51 in the previous period, indicating a decline in operational performance[37] - Total cash outflow from operating activities amounted to 242,979,011.01, a decrease from 324,716,254.36 in the prior period[37] - The net cash flow from financing activities was -387,990.08, slightly worse than -377,402.58 in the previous period[37] - The total cash and cash equivalents at the end of the period were 283,097,149.48, down from 290,514,652.79 at the beginning of the period[39] - The net increase in cash and cash equivalents was -75,835,760.44, compared to -30,407,923.58 in the previous period[39] Expenses - Total operating costs increased to ¥30,969,356.38 in Q1 2022, up 39.6% from ¥22,162,699.83 in Q1 2021[29] - The company reported a significant increase in sales expenses to ¥2,084,154.16 in Q1 2022, compared to ¥2,267,208.76 in Q1 2021[29] - Research and development expenses were ¥1,069,400.77 in Q1 2022, a decrease from ¥1,319,176.71 in Q1 2021[29] - The company paid 7,374,130.51 in employee compensation, which is a decrease from 9,203,391.70 in the prior period[37] - Tax payments amounted to 5,326,108.57, significantly higher than 1,247,580.79 in the previous period[37] - Cash outflow related to other operating activities was 65,778,271.05, an increase from 47,574,985.47 in the prior period[37] Government Support and Acquisitions - The company received government subsidies amounting to ¥6,126.58 during the reporting period[9] - The company plans to acquire 100% equity of Beijing Bailong Green Technology Co., Ltd., 100% equity of Phoenix Xiangsheng Tourism Development Co., Ltd., and other assets through a share issuance[19] - The company has received acceptance from the China Securities Regulatory Commission for its application regarding the issuance of shares for asset acquisition[19] Inventory and Foreign Exchange - The company’s inventory increased from CNY 22.71 million to CNY 26.23 million, representing an increase of approximately 15.5%[24] - The company experienced a foreign exchange gain of ¥1,195,600.00 in Q1 2022, contrasting with a loss of ¥67,200.00 in Q1 2021[32] - The impact of exchange rate changes on cash and cash equivalents was 13,054.51[39]

Financial Performance - The company achieved operating revenue of CNY 246,622,005.85, representing a year-on-year increase of 6.20%[40]. - Net profit attributable to shareholders was CNY 18,119,352.43, showing a decrease of 4.38% compared to the previous year[40]. - The net profit after deducting non-recurring gains and losses was CNY 27,575,653.46, an increase of 54.03% year-on-year[40]. - The net cash flow from operating activities was CNY 64,678,028.69, a significant decrease of 71.41% compared to the previous year[40]. - Total assets increased to CNY 1,205,119,346.90, up 3.72% year-on-year[40]. - Net assets attributable to shareholders reached CNY 1,072,662,007.16, reflecting a year-on-year increase of 4.61%[40]. - Basic earnings per share remained stable at CNY 0.03, with a diluted earnings per share also at CNY 0.03[40]. - Operating costs rose to CNY 134,914,537.53, marking a significant increase of 30.32% compared to the previous year[100]. - Research and development expenses surged by 109.43% to CNY 4,237,963.41, indicating a strong commitment to innovation[104]. - The gross margin for the animation and its derivative business decreased by 12.86 percentage points to 41.57%[105]. Corporate Governance - The company held 1 annual general meeting and 4 extraordinary general meetings during the reporting period, ensuring all shareholders, especially minority shareholders, can exercise their rights[160]. - The board of directors consists of 7 members, including 3 independent directors, and has established 4 specialized committees to enhance governance[160]. - The company published a total of 91 interim announcements during the reporting period, adhering to legal requirements for information disclosure[161]. - The company has implemented a fair and transparent performance evaluation and incentive mechanism for senior management, aligning with legal regulations[162]. - The company has made no changes to its internal control systems during the reporting period, and it continues to enhance its internal control mechanisms to promote sustainable development[165]. - The company maintains complete operational independence from its controlling shareholders, with no significant changes in competitive conditions affecting its business[165]. - The company’s governance structure aligns with legal and regulatory requirements, with no significant discrepancies noted[165]. - The company’s board of directors includes independent directors who have not experienced any changes in shareholding during the reporting period[172]. - The company’s chairman, Lai Zhilin, has been in position since February 25, 2021, and will serve until September 9, 2024[172]. - The company’s independent directors received a total of 23.71 million yuan in remuneration during the reporting period[172]. Business Strategy and Development - The company focused on optimizing its original content strategy and enhancing its IP commercialization paths[41]. - The company is actively developing new immersive cultural tourism experiences, including the first night tour project themed around Miao culture, "Xiangjian Tuojiang," which integrates various technological elements to enhance visitor experiences[49]. - The company initiated a major asset restructuring in May 2021, acquiring scarce cultural tourism resources to create a comprehensive service ecosystem for tourism destinations, enhancing the integration of cultural IP and technology[53]. - The company aims to enhance its digital marketing capabilities in response to the slowing growth of the advertising market due to economic downturns and stricter regulations[63]. - The company is committed to developing original IP with distinct Chinese cultural characteristics, utilizing various media forms to promote cultural transformation[62]. - The company is exploring new commercial opportunities in urban animation sculptures and large-scale sports event derivatives[68]. - The company aims to deepen the integration of cultural IP with tourism and technology, enhancing the value of tourism resources[95]. - The company plans to continue exploring innovative models in the cultural tourism industry, leveraging its rich tourism destination resources[95]. - The company anticipates that the macroeconomic environment may pose risks, including potential fluctuations in economic growth affecting consumer demand[150]. - The company is focused on enhancing its core competitiveness in the fields of animation, immersive cultural tourism, and scarce tourism asset operations[150]. Market Trends and Industry Insights - The animation industry in China saw a total output value exceeding ¥200 billion in 2021, indicating a clear growth trajectory despite increasing competition[58]. - The telecommunications industry reported a total revenue of ¥1.47 trillion in 2021, with mobile data and internet services generating ¥640.9 billion, reflecting an 8% growth year-on-year[59]. - The IP licensing business in China is rapidly developing, driven by advancements in 5G and AI technologies, as well as the popularity of short videos and live streaming[60]. - In 2021, the Chinese film and television industry market size reached RMB 234.9 billion, with a year-on-year growth of 23.2% and a compound annual growth rate of 7.9% from 2019 to 2021[62]. - The cultural industry in China is expected to grow significantly, driven by policy and technological advancements[134]. - The digital cultural tourism industry is expected to become a key driver for high-quality development, supported by government policies and technological advancements[138]. - The cultural entertainment industry is entering a phase of slowed growth, with intensified competition as internet giants deepen their involvement and new entrants squeeze existing market space[153]. Risk Management - The company has outlined potential risks in its future development in the management discussion and analysis section[10]. - The company is facing risks from industry regulation and policy changes, which may impact its animation and film business due to stricter qualification, content review, and administrative licensing policies[153]. - The company is actively exploring new business models to enhance its industry dynamics, but faces risks of underperformance in new business developments due to increasing market competition[154]. - The company reported a significant increase in operational efficiency through cost control measures and management precision, implementing training programs that included 22 sessions throughout the year[54]. Shareholder Engagement - The company held a total of 5 shareholder meetings during the reporting period, including 1 annual meeting and 4 extraordinary meetings, all of which complied with legal regulations and had valid resolutions[168]. - The company has not engaged in any related party transactions that would affect its independence[165]. - No insider trading was detected during the reporting period, ensuring compliance with insider information management regulations[162].

Financial Performance - The company's operating revenue for Q3 2021 was ¥58,382,988.07, a decrease of 59.66% compared to the same period last year[5] - The net profit attributable to shareholders for Q3 2021 was ¥4,172,920.62, with a significant increase of 271.14% year-to-date[5] - The basic earnings per share for Q3 2021 was ¥0.0067, reflecting a year-to-date increase of 270.49%[7] - Total revenue for the first three quarters of 2021 was CNY 162,200,410.68, a decrease of 39.9% compared to CNY 269,460,213.75 in the same period of 2020[32] - Net profit for the third quarter of 2021 was CNY 13,345,637.49, a decline of 27.4% compared to CNY 18,415,040.15 in the same quarter of 2020[36] - Basic earnings per share for the third quarter of 2021 were CNY 0.0226, compared to CNY 0.0061 in the same period of 2020[38] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,174,420,522.38, representing a 1.08% increase from the end of the previous year[7] - Total assets increased to CNY 1,174,420,522.38 from CNY 1,161,862,949.64, reflecting a growth of 1.1%[32] - Total liabilities amounted to CNY 158,793,048.30, slightly up from CNY 157,687,354.60, indicating a 0.7% increase[32] - The company’s total equity increased to CNY 1,015,627,474.08 from CNY 1,004,175,595.04, reflecting a growth of 1.2%[32] Cash Flow - The net cash flow from operating activities for the year-to-date was -¥13,980,060.28, a decrease of 122.05% compared to the same period last year[5] - Cash inflow from operating activities totaled RMB 789,732,155.11, an increase from RMB 756,388,819.15 in the same period last year, representing a growth of approximately 4.5%[42] - Cash outflow from operating activities amounted to RMB 803,712,215.39, compared to RMB 692,979,782.88 in the previous year, indicating an increase of about 15.9%[42] - Net cash flow from operating activities was negative at RMB -13,980,060.28, a significant decline from RMB 63,409,036.27 in the same period last year[42] - The ending cash and cash equivalents balance was RMB 268,786,815.49, down from RMB 290,514,652.79 at the beginning of the period[43] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 32,818[14] - The largest shareholder, Zhejiang Xiangyuan Industrial Co., Ltd., held 33.39% of the shares[14] Government Support and Investments - The company received government subsidies amounting to ¥4,026,171.88 during the reporting period[9] - The company plans to acquire 100% equity of Beijing Bailong Green Technology Co., Ltd., 100% equity of Phoenix Xiangsheng Tourism Development Co., Ltd., 100% equity of Zhangjiajie Huanglong Cave Tourism Development Co., Ltd., 80% equity of Qiyun Mountain Tourism Co., Ltd., and 100% equity of Hangzhou Xiaodao Network Technology Co., Ltd. through a share issuance, raising no more than RMB 400 million in supporting funds[19] Legal Matters - The company is currently facing multiple lawsuits related to securities false statements, with total claims amounting to RMB 235,956.65, but these are not expected to significantly impact operations[23] - The company is actively managing ongoing litigation matters to protect shareholder interests and mitigate potential financial losses[23] Asset Management - The company is undergoing a major asset restructuring, which is expected to enhance its financial position and profitability after completion[22] - The company’s net profit attributable to shareholders is projected to grow following the completion of the asset acquisition, although specific figures are not disclosed[22] Other Financial Metrics - The weighted average return on equity for Q3 2021 was 0.40%, an increase of 0.98 percentage points year-to-date[7] - Research and development expenses for the third quarter of 2021 were CNY 3,272,925.48, up from CNY 2,521,808.51 in the previous year, indicating a focus on innovation[36] - The company reported a decrease in accounts payable from CNY 59,702,672.10 to CNY 49,808,208.25, a reduction of 16.5%[32] - The company reported a significant increase in other receivables, which rose to RMB 29,992,048.14 from RMB 15,768,501.08, marking an increase of about 90%[27]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥103,817,422.61, a decrease of 16.76% compared to ¥124,724,476.19 in the same period last year[22]. - The net profit attributable to shareholders of the listed company increased by 67.02% to ¥9,828,349.00 from ¥5,884,615.08 year-on-year[22]. - The net profit after deducting non-recurring gains and losses surged by 448.75% to ¥8,510,717.87 compared to ¥1,550,929.88 in the previous year[22]. - The net cash flow from operating activities decreased significantly by 93.95% to ¥3,707,287.61 from ¥61,300,196.01 in the same period last year[22]. - The total assets at the end of the reporting period were ¥1,142,817,813.02, down 1.64% from ¥1,161,862,949.64 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company increased slightly by 0.96% to ¥1,035,233,050.87 from ¥1,025,404,701.87 at the end of the previous year[22]. - Basic earnings per share for the first half of 2021 were ¥0.0159, an increase of 67.37% from ¥0.0095 in the same period last year[22]. - The diluted earnings per share also stood at ¥0.0159, reflecting the same growth rate of 67.37% year-on-year[22]. - The weighted average return on net assets rose to 0.95%, an increase of 0.72 percentage points compared to 0.23% in the previous year[22]. - The company did not distribute cash dividends or transfer capital reserves to increase share capital for the first half of 2021[6]. Business Operations - The company maintains its core business in animation and its derivatives, focusing on new media animation and cultural tourism animation as strategic development directions[27]. - The company has established a robust IP resource library, successfully creating an IP matrix that covers users of all ages, primarily targeting young children[28]. - The company collaborates with major telecom operators to provide original animation copyrights and has accumulated extensive operational experience in this area[29]. - The animation and derivative business generates revenue through partnerships with telecom operators, online and offline copyright sales, and third-party billing[33]. - The company has produced over 12,000 minutes of high-quality animation content and has received nearly 100 domestic and international awards[34]. - The animation film and series production team consists of over 100 professionals, with core management having more than 10 years of industry experience[34]. - The company focuses on creating original content for animation films, series, and short videos, leveraging advanced CG animation technology[34]. - The company aims to integrate the "animation + cultural tourism" industry value chain to enhance its market position[32]. - The company's animation film business generates revenue through original film box office sharing, production services, and content operation, with a focus on high-quality animation projects[38]. - The internet promotion business leverages mobile internet resources and integrates telecom operator resources to enhance digital marketing services, including CPA and CPM billing models[39]. - The company has initiated a "Cultural + Tourism" strategy, collaborating with tourism destinations to provide comprehensive solutions that integrate animation IP and cultural experiences[41]. - The company has developed cultural derivative products by combining unique cultural elements with products, enhancing the cultural and commercial value[43]. Market Environment - In the first half of 2021, China's GDP reached 53,216.7 billion yuan, with a year-on-year growth of 12.7%[48]. - Per capita consumer spending in China was 11,471 yuan, reflecting a year-on-year increase of 17.4%, with per capita spending on education, culture, and entertainment rising by 68.5%[48]. - During the "Qingming" holiday, domestic tourism saw 102 million trips, a 144.6% increase compared to 2020, recovering to 94.5% of pre-pandemic levels, generating tourism revenue of 27.168 billion yuan, up 228.9% year-on-year[48]. - The "May Day" holiday recorded 230 million visitors, a 100% increase from 2020, with tourism revenue reaching 113.23 billion yuan, a 138.08% year-on-year growth, recovering to 77% of pre-pandemic levels[48]. - The emerging business revenue of telecom operators grew by 27% year-on-year in the first half of 2021, while mobile data and internet business revenue was 332.8 billion yuan, a 4.4% increase year-on-year[48]. - The total box office in mainland China for the first half of 2021 was 27.568 billion yuan, approximately 88% of the same period in 2019, with average audience attendance per screening down 20% compared to 2019[50]. - The brand licensing retail sales in China reached 110.6 billion yuan in 2020, with a year-on-year growth of 11.5%[50]. - The Chinese trendy toy market was estimated to be close to 30 billion yuan in 2020, projected to grow to 38.43 billion yuan in 2021[50]. - The advertising market in China saw a year-on-year growth of 27.3% in Q1 2021, with television media advertising revenue increasing by 19.9%[50]. Strategic Initiatives - The company is actively promoting a major asset restructuring to acquire scarce cultural tourism resources, enhancing its sustainable development prospects[61]. - The company plans to enhance its operational management efficiency and quality through internal management innovations and market expansion strategies[55]. - The company aims to create a unique cultural tourism industry model by integrating online cultural products with offline tourism experiences[61]. - The company has established a training platform to enhance employee skills and professional capabilities, conducting 18 training sessions[60]. - The company is focused on optimizing its organizational structure and performance assessment systems to improve employee satisfaction and operational efficiency[60]. - The company plans to acquire 100% equity of several companies, raising up to RMB 400 million through a private placement to no more than 35 specific investors[62]. Risks and Challenges - The financing leasing business has faced challenges due to macroeconomic slowdown and increased competition, leading to a strategic focus on risk control and business transformation[47]. - The company faces risks from macroeconomic fluctuations, industry regulations, and intensified market competition, which may impact its operations and profitability[75][76][77]. - The company faces risks related to product development and innovation due to rapid changes in user preferences and technology integration, particularly with the rise of 5G and AI[78]. - The cultural media industry is undergoing significant changes in production, dissemination, interaction, and profit models, impacting the company's profitability[79]. - The company is actively restructuring its existing business and exploring new business models, although these transitions are not expected to be immediate[81]. - There are uncertainties regarding the approval and integration of ongoing restructuring efforts, which may pose risks to effective asset synergy post-acquisition[83]. Legal and Compliance - The company received 110 civil judgments, 58 civil mediation documents, and 267 response notices from the Hangzhou Intermediate People's Court as of July 26, 2021[101]. - The company is involved in significant litigation with a total claim amount of RMB 707,087.89 and RMB 552,742.50 from different parties[102]. Corporate Governance - The company emphasizes its commitment to environmental responsibility and sustainable practices, aligning with its corporate philosophy of "living healthily"[95]. - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations in the next 12 months[194]. - The company adheres to accounting standards, ensuring that its financial reports accurately reflect its financial condition and operational results[196]. - The company's accounting period runs from January 1 to December 31[197]. - The business cycle is relatively short, with a liquidity classification standard of 12 months for assets and liabilities[198]. - The company's functional currency is Renminbi (RMB)[199].

[Important Notes](index=3&type=section&id=I.%20Important%20Notes) The Board of Directors, Supervisory Committee, and senior management ensure the report's authenticity, accuracy, and completeness, while noting the report is unaudited - Management guarantees the authenticity, accuracy, and completeness of the report's content and assumes corresponding legal responsibilities[8](index=8&type=chunk)[9](index=9&type=chunk) - The company's first quarter report is **unaudited**[10](index=10&type=chunk) [Company Profile](index=3&type=section&id=II.%20Company%20Profile) This section presents key financial data and shareholder structure for Q1 2021, highlighting a revenue decrease but a significant non-recurring profit increase [Key Financial Data](index=3&type=section&id=2.1%20Key%20Financial%20Data) Q1 2021 revenue and net profit declined, but net profit excluding non-recurring items grew significantly while operating cash flow turned negative Key Financial Data for Q1 2021 | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 39,090,952.07 | 57,318,172.70 | -31.80 | | Net Profit Attributable to Shareholders (Yuan) | 5,572,719.44 | 6,098,571.28 | -8.62 | | Net Profit Attributable to Shareholders (Non-recurring items excluded) (Yuan) | 4,863,459.27 | 2,900,950.62 | 67.65 | | Net Cash Flow from Operating Activities (Yuan) | -30,031,477.51 | 24,088,272.11 | -224.67 | | Total Assets (Yuan) | 1,157,277,695.53 | 1,161,862,949.64 (Prior Year-End) | -0.39 | - Total non-recurring gains and losses for the period were **709,260.17 Yuan**, primarily from government subsidies of 1,027,324.39 Yuan[14](index=14&type=chunk) [Shareholder Structure](index=4&type=section&id=2.2%20Total%20Number%20of%20Shareholders%2C%20Top%20Ten%20Shareholders%2C%20and%20Top%20Ten%20Tradable%20Shareholders%20at%20the%20End%20of%20the%20Reporting%20Period) The company had 38,806 shareholders, with the largest shareholder's stake significantly pledged and the second-largest shareholder's stake fully frozen - As of the end of the reporting period, the total number of shareholders was **38,806**[14](index=14&type=chunk) Top Ten Shareholders | Shareholder Name | Shareholding | Ratio (%) | Share Status | | :--- | :--- | :--- | :--- | | Zhejiang Sunriver Industrial Co., Ltd. | 206,788,258 | 33.39 | Pledged 151,760,000 | | Tibet Lian'er Venture Capital Co., Ltd. | 47,934,743 | 7.74 | Frozen 47,934,743 | | Xu Haiqing | 35,000,000 | 5.65 | None | | Zhang Jie | 12,147,500 | 1.96 | None | | Hangzhou Qiji Investment Management Partnership (Limited Partnership) | 11,155,819 | 1.80 | None | [Significant Matters](index=5&type=section&id=III.%20Significant%20Matters) This section analyzes major financial data fluctuations, driven by changes in revenue recognition, increased R&D spending, and higher procurement costs [Analysis of Significant Changes in Financial Indicators](index=5&type=section&id=3.1%20Significant%20Changes%20in%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators%20and%20Their%20Causes) Significant financial indicator changes were driven by net revenue recognition, increased R&D investment, higher interest income, and increased procurement Analysis of Major Financial Indicator Changes | Item | Change (%) | Primary Reason for Change | | :--- | :--- | :--- | | Operating Revenue | -31.80 | Due to net method revenue recognition | | Operating Costs | -84.57 | Due to net method revenue recognition | | R&D Expenses | 81.39 | Due to increased R&D investment | | Finance Expenses | -404.31 | Due to increased interest income | | Credit Impairment Loss | -809.13 | Due to bad debt provision for receivables | | Net Cash Flow from Operating Activities | -224.67 | Due to increased procurement | [Appendix: Financial Statements](index=7&type=section&id=IV.%20Appendix) The appendix contains the unaudited Q1 2021 consolidated and parent company financial statements, including balance sheets, income, and cash flow statements [Consolidated Balance Sheet](index=7&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2021, total assets stood at 1.16 billion Yuan, with a slight decrease from the previous year-end Key Items from Consolidated Balance Sheet (2021-03-31) | Item | Amount (Yuan) | | :--- | :--- | | **Assets** | | | Total Current Assets | 818,671,059.13 | | Total Non-current Assets | 338,606,636.40 | | **Total Assets** | **1,157,277,695.53** | | **Liabilities and Equity** | | | Total Current Liabilities | 132,741,682.32 | | Total Non-current Liabilities | 17,042,137.71 | | **Total Liabilities** | **149,783,820.03** | | Total Equity Attributable to Parent Company | 1,030,977,421.31 | | **Total Liabilities and Equity** | **1,157,277,695.53** | [Consolidated Income Statement](index=11&type=section&id=Consolidated%20Income%20Statement) In Q1 2021, the company's total operating revenue decreased by 31.80% while net profit attributable to parent company shareholders slightly fell by 8.62% Key Items from Consolidated Income Statement (Q1 2021) | Item | Q1 2021 (Yuan) | Q1 2020 (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 39,090,952.07 | 57,318,172.70 | | II. Total Operating Costs | 22,162,699.83 | 58,292,459.44 | | Of which: Operating Costs | 6,825,555.94 | 44,227,993.65 | | III. Operating Profit | 5,696,896.31 | 4,342,880.88 | | IV. Total Profit | 5,612,226.99 | 4,461,534.55 | | Net Profit Attributable to Parent Company Shareholders | 5,572,719.44 | 6,098,571.28 | | Basic Earnings Per Share (Yuan/Share) | 0.01 | 0.01 | [Consolidated Cash Flow Statement](index=15&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash flow from operating activities turned significantly negative in Q1 2021 due to increased payments for goods and services Key Items from Consolidated Cash Flow Statement (Q1 2021) | Item | Q1 2021 (Yuan) | Q1 2020 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -30,031,477.51 | 24,088,272.11 | | Net Cash Flow from Investing Activities | -12,098.00 | -49,939,310.72 | | Net Cash Flow from Financing Activities | -377,402.58 | -3,738,372.30 | | Net Increase in Cash and Cash Equivalents | -30,407,923.58 | -29,550,967.42 | | Closing Balance of Cash and Cash Equivalents | 260,106,729.21 | 138,957,594.48 | [Parent Company Financial Statements](index=9&type=section&id=Parent%20Company%20Financial%20Statements) The parent company reported a net loss of 1.36 million Yuan and negative operating cash flow of 23.09 million Yuan for Q1 2021 - The parent company's net profit for Q1 2021 was **-1,360,283.18 Yuan**[46](index=46&type=chunk) - Net cash flow from the parent company's operating activities was **-23,090,152.28 Yuan**[51](index=51&type=chunk)

Financial Performance - The company achieved a total consolidated profit of CNY 37,393,479.08 in 2020, with a net profit of CNY 33,022,592.20 after tax expenses[6]. - The net profit attributable to shareholders of the listed company was CNY 18,950,236.03, a significant recovery from a loss of CNY 853,344,751.49 in 2019[24]. - Operating revenue for 2020 was CNY 232,227,277.97, representing a decrease of 45.01% compared to CNY 422,318,298.85 in 2019[24]. - The company decided not to distribute profits or increase capital reserves due to negative retained earnings of CNY -707,536,164.88 at the end of 2020[6]. - The net cash flow from operating activities was CNY 226,252,519.22, a recovery from a negative cash flow of CNY -185,177,743.75 in 2019[24]. - Total assets decreased by 4.11% to CNY 1,161,862,949.64 at the end of 2020, down from CNY 1,211,722,261.46 in 2019[27]. - The net assets attributable to shareholders of the listed company increased by 2.46% to CNY 1,025,404,701.87 at the end of 2020[27]. - The company reported a negative retained earnings balance for the parent company of CNY -1,135,366,666.96 at the end of 2020[6]. - Basic earnings per share increased to CNY 0.03 from a loss of CNY 1.37 in 2019, marking a significant recovery[28]. - The weighted average return on equity improved to 1.88% from -60.45% in 2019, indicating a positive turnaround in profitability[28]. Business Strategy and Development - The company maintains a strategic focus on animation and its derivatives, with an emphasis on new media and cultural tourism animation[38]. - The company has established a mature business model combining content and channels, leveraging its extensive IP resources in the animation sector[39]. - The company aims to expand its market presence in mobile internet animation services, targeting a broad age demographic with its IP matrix[39]. - The company is committed to developing new products and technologies within the animation and cultural tourism sectors to enhance its competitive edge[38]. - The company has accumulated a total box office revenue of 430 million yuan and produced over 12,000 minutes of high-quality animation content[47]. - The company has established a comprehensive brand copyright authorization and development solution platform, covering various sectors including publishing, education, toys, and fast-moving consumer goods[46]. - The company has developed a video ringtone service, which is considered an innovative application in the 5G era, providing customized video ringtones for enterprises[42]. - The company has a professional animation team with over 100 members, each with more than 10 years of experience in their respective fields[47]. - The company generates revenue through multiple channels, including partnerships with telecom operators, online and offline copyright sales, and third-party billing[46]. - The company has received nearly 100 national and international awards for its influential animated works[47]. Market Trends and Industry Insights - The financing leasing business has been impacted by the pandemic, leading to an increase in non-performing rates among leasing companies[63]. - From 2015 to 2019, the cultural and related industries' added value increased from less than 3 trillion yuan to 4.43 trillion yuan, contributing to GDP growth from under 4% to 4.5%[63]. - The average per capita consumption expenditure on education, culture, and entertainment rose from 1,723 yuan in 2015 to 2,513 yuan in 2019, maintaining an 11% share of total per capita consumption expenditure[63]. - The number of pan-anime users in China reached 390 million in 2019, with expectations to grow to 410 million post-2020[63]. - The total output value of China's animation industry reached 194.1 billion yuan in 2019, benefiting from robust economic growth and government support[63]. - In 2020, mobile communication business revenue was 889.1 billion yuan, a 0.4% decline from the previous year, with its share of telecom revenue dropping to 65.5%[63]. - The traditional telecom market is facing saturation, prompting operators to shift focus towards new business opportunities[63]. - The financing leasing industry is undergoing a transformation due to stricter regulations and increased competition, necessitating innovation and strategic adjustments[63]. Legal and Compliance Issues - The company received a total of 8 civil judgments and 24 appellate judgments related to securities false statement liability disputes as of January 3, 2020[133]. - By January 23, 2020, the company had received an additional 20 civil judgments and 40 appellate judgments concerning similar disputes[133]. - As of March 20, 2020, the company received 5 civil judgments and 40 notices of defense, with 40 individuals filing lawsuits against the company for securities false statement liability[133]. - The company faced 26 new lawsuits filed by individuals for securities false statement liability as of March 27, 2020[133]. - The total amount involved in the civil lawsuits from various individuals includes 7,383,145.36 RMB and 1,246,280.13 RMB among others[136]. - The company is currently involved in multiple civil lawsuits with amounts claimed ranging from 96,606.39 RMB to 11,003,211.12 RMB[136]. - The company has not recognized any contingent liabilities related to the ongoing lawsuits[136]. - The company has received notices of defense for several lawsuits, indicating ongoing legal challenges[136]. - The company continues to monitor and respond to the legal proceedings as they develop[133]. - The company has confirmed that the ongoing litigation will not have a significant impact on its production and operational management[141]. Corporate Governance and Shareholder Relations - The company has established a comprehensive talent management system to attract, retain, and motivate employees, ensuring a stable core team[121]. - The company has maintained compliance with commitments regarding independence and avoidance of competition with related parties[127]. - The company is committed to improving its corporate governance and ensuring compliance with regulatory requirements[127]. - The company emphasizes its commitment to environmental protection and sustainable practices, stating it does not belong to key pollutant discharge units[153]. - The company has actively engaged in social responsibility initiatives, as detailed in its 2020 Social Responsibility Report[152]. - The company has a clear governance structure, ensuring independence and compliance with relevant laws and regulations[194]. - The company has established effective communication channels with shareholders to enhance understanding and recognition, promoting positive interaction and protecting investor interests[197]. - The company implemented a fair and transparent performance evaluation and incentive mechanism for senior management, with annual goals and assessment indicators set at the beginning of each year[197]. Future Outlook and Strategic Initiatives - The company plans to leverage the growing cultural consumption demand as the economy stabilizes, aiming to expand its market presence in the entertainment sector[101]. - The company aims to enhance its investment in technology elements and promote the development of the entire industry chain of animation IP, including original animation, copyright operation, and derivative product development[107]. - The company is committed to becoming a leading cultural and entertainment technology company in China by building a comprehensive "cultural, animation, film, and tourism" industry chain[109]. - The company aims to enhance its profitability and competitive edge by focusing on strategic investments and project collaborations within the "cultural, animation, film, and tourism" integrated entertainment industry chain[110]. - The company will continue to develop immersive cultural tourism projects, leveraging its animation and brand influence to enhance industry collaboration and diversify revenue streams[110]. - The company is committed to continuous innovation in its operations and management to adapt to the evolving cultural media landscape and user preferences[117].

2020 年第三季度报告 公司代码：600576 公司简称：祥源文化 浙江祥源文化股份有限公司 2020 年第三季度报告 1 / 20 2020 年第三季度报告 一、 重要提示 二、 公司基本情况. 11[ 重要事项 四、 附录 目录 2 / 20 2020 年第三季度报告 单位：元 币种：人民币 一、重要提示 1.1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 1.2 公司全体董事出席董事会审议季度报告。 1.3 公司负责人燕东来、主管会计工作负责人高朝晖及会计机构负责人（会计主管人员）郭伟肖 保证季度报告中财务报表的真实、准确、完整。 1.4 本公司第三季度报告未经审计。 二、公司基本情况 2.1 主要财务数据 | --- | --- | --- | --- | |-----------------------------------------------|------------------------------|------------------------------------|--- ...

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 124,724,476.19, a decrease of 55.29% compared to CNY 278,992,363.25 in the same period last year[21]. - The net profit attributable to shareholders for the first half of 2020 was CNY 5,884,615.08, down 86.50% from CNY 43,575,827.66 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 1,550,929.88, a decline of 96.25% compared to CNY 41,351,410.09 in the same period last year[21]. - Basic earnings per share for the first half of 2020 were CNY 0.0095, down 86.23% from CNY 0.069 in the same period last year[22]. - The weighted average return on net assets was 0.23%, a decrease of 2.08 percentage points from 2.31% in the previous year[22]. - The company reported a net loss of -1,141,190,862.92 RMB in retained earnings, slightly increasing from -1,140,492,763.28 RMB year-over-year[124]. - The company's net profit for the current period is CNY 2,231,967.34, a significant decrease from CNY 40,613,043.76 in the previous period, representing a decline of approximately 94.5%[128]. - The total profit for the current period is CNY 2,911,984.17, down from CNY 48,647,456.29 in the previous period, indicating a decrease of about 94.0%[128]. - The company's operating profit is CNY 2,936,533.64, compared to CNY 48,053,918.18 in the previous period, reflecting a decline of approximately 93.9%[128]. Cash Flow and Assets - The net cash flow from operating activities was CNY 61,300,196.01, compared to a negative cash flow of CNY -240,040,504.76 in the previous year[21]. - Cash and cash equivalents decreased by 24.45% to ¥127,315,841.44, accounting for 11.13% of total assets[60]. - The total amount of government subsidies recognized in the current period was RMB 5,231,051.89[26]. - The total current assets decreased to ¥761,775,296.01 from ¥865,139,447.18 as of December 31, 2019, representing a decline of approximately 12%[114]. - Total liabilities decreased to ¥175,659,143.85 from ¥243,596,948.06, a decrease of around 28%[119]. - The company's total equity increased slightly to ¥968,722,780.74 from ¥968,125,313.40, reflecting a marginal growth of about 0.06%[119]. Business Operations and Strategy - The main business segments include animation and derivative services, animation film and television production, cultural tourism animation, internet promotion, and internet finance[28]. - The company focuses on leveraging its rich IP resources for mobile internet animation and related services, aiming to enhance revenue through various channels[31]. - The animation film and television business operates under three models: commissioned production, production as investment, and leading investment[36]. - The company aims to integrate its animation and cultural tourism businesses to enhance product offerings and market reach[36]. - The internet finance segment primarily involves financing leasing and automotive financial services, targeting a broader consumer base[30]. - The company is committed to expanding its market presence through strategic partnerships and innovative product offerings[30]. Market and Economic Context - In Q1 2020, China's GDP decreased by 6.8% year-on-year, marking the first negative growth quarter and the largest decline on record, with industrial enterprise revenue down 15.1%[40]. - The pandemic led to a significant impact on the tourism industry, with over 13,170 film-related companies being canceled or revoked by June 12, 2020, far exceeding the number in 2019[40]. - The average daily usage time of the Toutiao app increased by 11.5% to 96.65 minutes, while NetEase News saw a 29.7% increase to 102 minutes, indicating a surge in online content consumption[40]. - The total number of active users in China's mobile internet reached 8.52 billion by June 2020, with a net increase surpassing the entire previous year[40]. Legal and Compliance Issues - The company has received a total of 8 first-instance civil judgments and 24 appellate judgments related to securities false statement liability disputes as of January 3, 2020[82]. - The company has ongoing civil litigation involving amounts totaling approximately RMB 19 million, with various outcomes including dismissals and judgments[84]. - The company was ordered to pay a total of RMB 2,211,120.49 in compensation and interest in a case involving 55 plaintiffs due to securities false statement liability disputes[86]. - The company’s actual controller, Kong Deyong, has committed to compensate the company for any economic losses arising from legal liabilities due to violations of securities laws[86]. - The company is actively taking measures to handle litigation matters and protect the legal rights of shareholders[89]. Corporate Governance and Shareholder Information - The company did not distribute cash dividends or transfer capital reserves to increase share capital for the first half of 2020[6]. - The total number of shareholders at the end of the reporting period was 44,791, with no changes in the number of preferred shareholders[105]. - The largest shareholder, Zhejiang Xiangyuan Industrial Co., Ltd., holds 206,788,258 shares, representing 33.39% of the total shares[105]. - The company has not reported any new capital contributions or reductions during the reporting period[146]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection and sustainable practices, aligning with its corporate philosophy of "living healthily"[95]. Accounting and Financial Reporting - The company reported no significant changes in accounting policies or estimates during the reporting period[96]. - There were no major accounting errors that required retrospective restatement during the reporting period[96]. - The company’s financial statements are prepared based on the assumption of going concern, with no significant doubts regarding its ability to continue operations for the next 12 months[171]. - The company’s accounting policies include specific provisions for bad debts, depreciation of fixed assets, and revenue recognition, ensuring compliance with accounting standards[172].