掌阅科技股份有限公司 2022 年第一季度报告 单位：元 币种：人民币 证券代码：603533 证券简称：掌阅科技 掌阅科技股份有限公司 2022 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示 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、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人成湘均、主管会计工作负责人张维聪及会计机构负责人（会计主管人员）朱丹保证季 度报告中财务报表信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | |-----------------------------------------------|----------------|-------------------------------------| | 项目 | 本报告期 | 本报告期比上年同期增减 变动幅度 (%) | | 营业收入 | ...

Financial Performance - The company's operating revenue for Q3 2021 was ¥502,464,470.33, a decrease of 2.40% compared to the same period last year[7] - The net profit attributable to shareholders of the listed company was ¥14,929,714.17, down 73.16% year-on-year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥14,873,026.26, a decrease of 72.19% compared to the same period last year[7] - In the first three quarters of 2021, the company achieved operating revenue of CNY 1,596.79 million, a year-on-year increase of 6.81%[21] - The net profit attributable to shareholders was CNY 148.74 million, a year-on-year decrease of 10.46%[21] - Net profit for the first three quarters of 2021 was RMB 151,165,133.83, slightly down from RMB 156,695,198.59 in the same period of 2020, indicating a decrease of around 3.2%[35] - Total comprehensive income for the first three quarters of 2021 was RMB 151,203,866.37, compared to RMB 156,682,543.93 in 2020, indicating a decrease of around 3.5%[38] Assets and Liabilities - The total assets at the end of the reporting period were ¥3,563,468,417.53, an increase of 55.99% compared to the end of the previous year[10] - As of September 30, 2021, the company's total assets amounted to CNY 3,563.47 million, up from CNY 2,284.40 million at the end of 2020[24] - The company's total liabilities as of September 30, 2021, were CNY 1,001.48 million, compared to CNY 836.59 million at the end of 2020[29] - The total assets increased to $2.30 billion, reflecting an increase of $12.61 million compared to the previous year[49] - The total liabilities rose to $850.99 million, an increase of $14.39 million year-over-year[51] Shareholder Equity - The equity attributable to shareholders of the listed company was ¥2,545,636,450.86, up 76.94% year-on-year[10] - The total equity attributable to shareholders reached CNY 2,545.64 million, up from CNY 1,438.67 million at the end of 2020[29] - The company's equity attributable to shareholders was $1.44 billion, slightly down from $1.44 billion in the previous year[51] Earnings Per Share - The basic earnings per share for the reporting period was ¥0.03, a decrease of 78.57% compared to the same period last year[10] - The diluted earnings per share for the reporting period was also ¥0.03, reflecting the same percentage decrease of 78.57%[10] - Basic earnings per share for the third quarter of 2021 were RMB 0.35, down from RMB 0.41 in the same quarter of 2020, reflecting a decrease of approximately 14.6%[38] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥130,955,872.29, down 46.78% compared to the same period last year[10] - Cash flow from operating activities for the first three quarters of 2021 was RMB 130,955,872.29, compared to RMB 246,074,403.89 in the same period of 2020, showing a decline of about 46.8%[42] - The company reported a total cash inflow from operating activities of RMB 1,768,973,139.43 for the first three quarters of 2021, compared to RMB 1,599,503,028.10 in 2020, representing an increase of approximately 10.6%[42] - The net cash flow from investing activities was -$516.47 million, a decrease from -$646.46 million year-over-year[44] - The net cash flow from financing activities was $999.27 million, compared to a negative $61.02 million in the previous year[44] Investment and Expenses - The company increased its investment in personnel and R&D, which contributed to the decline in net profit[13] - Research and development expenses increased to RMB 128,297,576.84 in the first three quarters of 2021, up from RMB 111,393,273.54 in 2020, marking a rise of approximately 15.2%[33] - The company reported a decrease in prepaid expenses by approximately $1.86 million[47] Shareholder Information - The top ten shareholders collectively hold 43.93% of the company's shares, with Zhang Lingyun and Cheng Xiangjun being acting in concert[14] - The cash received from minority shareholders' investments was $4.27 million[44] - The cash paid for dividends and interest was $43.89 million, compared to $60.15 million in the previous year[44]

Financial Performance - The company's operating revenue for the first half of the year reached ¥1,094,323,030.77, an increase of 11.64% compared to ¥980,200,686.68 in the same period last year [29]. - Net profit attributable to shareholders was ¥133,813,325.46, reflecting a growth of 21.10% from ¥110,497,809.05 year-on-year [29]. - The net cash flow from operating activities increased by 75.73% to ¥121,191,590.20, compared to ¥68,965,882.41 in the previous year [29]. - The company's total assets grew by 48.47% to ¥3,391,700,274.89 from ¥2,284,396,340.71 at the end of the previous year [29]. - The weighted average return on equity decreased by 2.50 percentage points to 6.10% from 8.60% in the same period last year [29]. - The company achieved a revenue of 1,094.32 million RMB in the first half of 2021, representing a year-on-year growth of 11.64% [45]. - The net profit attributable to shareholders was 133.81 million RMB, an increase of 21.10% compared to the same period last year [45]. - The company's total liabilities decreased by 34.23% to ¥31,355,672.20, which is 0.92% of total assets, mainly due to a reduction in taxes payable [60]. - The company's total liabilities decreased to ¥756,169,247.53 from ¥773,453,767.00, a reduction of 2.5% [167]. - Total equity increased significantly to ¥2,446,166,790.68 from ¥1,353,008,799.28, reflecting an increase of 80.9% [167]. Assets and Liabilities - The company's cash and cash equivalents at the end of the period amounted to ¥2,375,795,973.72, representing 70.05% of total assets, an increase of 83.97% compared to the previous year [58]. - Other receivables increased by 34.03% to ¥7,165,592.70, accounting for 0.21% of total assets, primarily due to an increase in deposits [58]. - Inventory rose by 47.55% to ¥941,531.60, maintaining a 0.03% share of total assets, attributed to the introduction of new product types [58]. - The company's long-term equity investments rose to RMB 253,557,051.20 from RMB 244,731,264.92, marking an increase of approximately 3.9% [152]. - The total current assets as of June 30, 2021, amounted to RMB 2,797,177,342.59, an increase from RMB 1,730,303,338.45 as of December 31, 2020, representing a growth of approximately 61.8% [152]. - The total assets of the company reached ¥3,202,336,038.21, compared to ¥2,126,462,566.28, representing a growth of 50.5% [167]. Research and Development - The company’s R&D expenses rose by 17.54% to 71.55 million RMB, reflecting increased investment in research and development [56]. - Research and development expenses increased to ¥84,096,429.43, up from ¥71,548,922.02, marking a rise of 17.5% [167]. Market and Competition - The company faces risks from regulatory changes in the digital reading industry, which could impact business stability [65]. - The company is exposed to intense market competition in the digital reading sector, which may affect its competitive position and performance [66]. - The average monthly active users on the digital reading platform maintained an industry-leading level, with plans to increase user acquisition through targeted advertising [48]. - The overseas reading business added over 1 million paid users, generating revenue of 148 million RMB, which is over 100% growth year-on-year [50]. Corporate Governance and Compliance - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties [9]. - The company has made commitments to avoid non-operating fund occupation and will ensure compliance with relevant laws and regulations [105]. - The controlling shareholders have pledged to prevent any competition with the company and will introduce any relevant business opportunities to the company [102]. - The company has not reported any violations or penalties against its directors, supervisors, or senior management during the reporting period [106]. - The company has established measures to ensure that its controlling shareholders do not interfere with its management activities [102]. Social Responsibility - The company provided job opportunities for 219 disabled individuals through its "Zhangyue Book Craftsman" project, enabling them to work remotely in e-book formatting and proofreading [91]. - The company has maintained and updated reading rooms in impoverished areas and minority communities as part of its social responsibility initiatives [91]. - The company donated 50 iReader e-book readers and 50 annual VIP reading cards, each containing access to 200,000 e-books for one year, to several primary schools in Jinggangshan [92]. - The company donated laptops to 30 students from impoverished families in Kangbao County and 30 students in Zhuozi County, aiming to support education in underprivileged areas [92]. - The company has focused on reducing carbon emissions by promoting digital reading services, which decreases the need for paper books and tree cutting [90]. Shareholder Information - The total number of ordinary shareholders reached 45,638 by the end of the reporting period [135]. - The top shareholder, Zhang Lingyun, holds 99,451,049 shares, representing 22.66% of the total shares [138]. - The second-largest shareholder, Cheng Xiangjun, owns 93,352,370 shares, accounting for 21.27% [138]. - Major shareholders include various investment funds, with significant increases in limited shares for several individuals and institutions [126]. - The company has maintained a stable shareholder structure with no significant changes in the top ten shareholders during the reporting period [135]. Future Outlook - The management provided a positive outlook for the second half of 2021, anticipating continued growth in user engagement and revenue [146]. - The company is focusing on expanding its market presence and enhancing its product offerings, although specific new products were not detailed in the report [146]. - The report indicates that the company is exploring strategic partnerships and potential acquisitions to bolster growth [146].

Financial Performance - Operating revenue for the period was CNY 553,989,673.08, representing a 12.77% increase year-on-year[11] - Net profit attributable to shareholders increased by 14.71% to CNY 63,345,053.86 compared to the same period last year[11] - Basic earnings per share rose by 7.14% to CNY 0.15 per share[11] - Total revenue for Q1 2021 reached ¥553,989,673.08, an increase of 12.8% compared to ¥491,237,835.90 in Q1 2020[45] - Operating profit for Q1 2021 was ¥77,443,757.93, up from ¥63,843,537.88 in Q1 2020, reflecting a growth of 21.3%[45] - Net profit for Q1 2021 was ¥62,944,277.53, compared to ¥55,794,680.00 in Q1 2020, representing an increase of 12.9%[47] - Total comprehensive income for the first quarter of 2021 was ¥47,637,374.27, compared to ¥46,522,945.97 in the same period of 2020, reflecting a year-over-year increase[55] Assets and Liabilities - Total assets increased by 48.22% to CNY 3,385,895,826.28 compared to the end of the previous year[11] - Cash and cash equivalents increased to ¥2,285,909,573.09 from ¥1,291,384,613.59, a growth of 77.01% due to the arrival of funds from a private placement[21] - Total assets increased to ¥3,200,394,789.76 as of March 31, 2021, up from ¥2,126,462,566.28 at the end of December 2020, representing a growth of approximately 50.5%[39] - Total liabilities decreased slightly to ¥763,776,411.39 from ¥773,453,767.00, a reduction of approximately 1.7%[39] - Non-current liabilities totaled ¥34,782,085.29, up from ¥18,300,705.47, indicating a growth of approximately 90%[39] - The total liabilities rose from ¥836,591,829.35 to ¥850,985,665.96, an increase of ¥14,393,836.61[75] - Total liabilities increased to CNY 773,453,767.00 from CNY 787,184,739.14, an increase of CNY 13,730,972.14 attributed to the new leasing standard[82] Cash Flow - Cash flow from operating activities showed a significant decline of 178.87%, resulting in a net outflow of CNY 28,652,389.50[11] - Net cash flow from operating activities turned negative at -¥28,652,389.50 compared to ¥36,327,984.22, a decline of 178.87% attributed to increased employee compensation and promotional costs[21] - Cash inflow from operating activities amounted to ¥555,319,337.08, up from ¥455,873,924.27 in the first quarter of 2020, representing a growth of approximately 21.8%[59] - Cash outflow from investing activities totaled ¥634,476,520.34, leading to a net cash flow from investing activities of -¥629,856,520.34, compared to -¥144,860,365.89 in the previous year[61] - Cash inflow from financing activities was ¥1,045,436,416.83, with a net cash flow from financing activities of ¥1,042,229,644.38, indicating strong capital raising efforts[61] Shareholder Information - The total number of shareholders reached 39,944 by the end of the reporting period[14] - The top two shareholders, Zhang Lingyun and Cheng Xiangjun, collectively hold 43.93% of the company's shares[18] Expenses - Research and development expenses increased to ¥43,781,396.11 in Q1 2021, up from ¥35,244,609.65 in Q1 2020, marking a rise of 24.3%[45] - Sales expenses for Q1 2021 were ¥130,259,972.40, an increase from ¥116,793,811.29 in Q1 2020, which is a growth of 11.5%[45] - The tax expenses for Q1 2021 were ¥14,359,624.95, significantly higher than ¥5,694,563.51 in Q1 2020, showing an increase of 152.5%[47] Equity and Reserves - Net assets attributable to shareholders increased by 76.60% to CNY 2,540,660,662.85 compared to the end of the previous year[11] - Shareholders' equity totaled ¥2,436,618,378.37, up from ¥1,353,008,799.28, reflecting an increase of around 80.1%[41] - The capital reserve increased significantly to ¥1,369,339,584.43 from ¥369,535,586.42, representing a growth of about 270%[39] - The company reported a decrease in undistributed profits to CNY 511,106,091.42 from CNY 509,377,463.22, a decrease of CNY 1,728,628.20[85]

Financial Performance - Net profit attributable to shareholders was ¥166,115,485.60, representing a growth of 53.75% year-on-year[11]. - Operating revenue for the first nine months was ¥1,495,034,254.71, up 7.83% from the same period last year[11]. - Basic earnings per share rose to ¥0.41, reflecting a 51.85% increase year-on-year[13]. - The weighted average return on net assets improved to 12.82%, an increase of 3.38 percentage points[13]. - The company reported a total profit of ¥72,545,467.01 for Q3 2020, compared to ¥44,704,647.38 in Q3 2019, marking a significant increase[59]. - Net profit for Q3 2020 was ¥47,759,148.84, compared to ¥36,366,510.95 in Q3 2019, reflecting a 31.5% year-over-year growth[59]. - The company’s total revenue for the first three quarters of 2020 was ¥1,495,034,254.71, a 7.8% increase from ¥1,386,496,470.70 in the same period of 2019[55]. Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,120,392,108.44, an increase of 10.92% compared to the end of the previous year[11]. - The company’s net assets attributable to shareholders increased by 8.43% to ¥1,345,313,028.93 compared to the previous year[11]. - Total liabilities increased to ¥769,183,538.22 from ¥656,980,767.40, which is an increase of approximately 17.0%[43]. - Current liabilities rose to ¥764,317,149.37, compared to ¥654,709,539.07, indicating an increase of about 16.7%[41]. - The total current liabilities increased by 43.47% to CNY 414,931,284.00, reflecting business expansion and operational optimization[24]. - The company reported contract liabilities of CNY 253,338,190.05, resulting from the reclassification of advance receipts under the new revenue recognition standards[24]. Cash Flow - The net cash flow from operating activities increased by 120.52% to ¥246,074,403.89 compared to the previous year[11]. - Cash flow from operating activities for the first three quarters of 2020 was RMB 246.07 million, significantly higher than RMB 111.59 million in the same period of 2019, marking a 120.4% increase[76]. - The company’s cash flow from investing activities worsened by 96.54%, amounting to CNY -646,458,891.11, due to increased equity investments and large certificate purchases[27]. - The company reported cash outflows from investment activities totaling CNY 985,868,138.46, compared to CNY 1,708,989,509.86 in the previous year, indicating a reduction in investment spending[81]. - The company experienced a net decrease in cash and cash equivalents of -CNY 522,687,013.54 in Q3 2020, compared to -CNY 301,645,139.84 in Q3 2019[84]. Shareholder Information - The total number of shareholders at the end of the reporting period was 34,119, with the top two shareholders holding a combined 59.31% of the shares[20]. - The company is in the process of a non-public offering of A-shares, which is subject to further review by the China Securities Regulatory Commission, with no certainty of final approval[32]. Expenses and Income - Financial expenses decreased by 34.93% to CNY -19,071,572.91 from CNY -29,310,059.59 year-on-year, mainly due to the impact of exchange gains and interest income[27]. - Other income rose by 41.99% to CNY 13,226,564.34, attributed to an increase in deductible input tax and related subsidies received[27]. - Investment income decreased by 31.63% to CNY 21,283,573.67, primarily due to the absence of long-term equity investment disposals compared to the previous year[27]. - The company reported a 226.68% increase in income tax expenses to CNY 36,339,936.73, driven by growth in copyright and commercialization value-added businesses[27]. Research and Development - Research and development expenses increased to ¥39,844,351.52 in Q3 2020, up 21.5% from ¥32,826,258.70 in Q3 2019[59]. - Research and development expenses for Q3 2020 amounted to RMB 37.12 million, up from RMB 32.35 million in Q3 2019, representing a 14.0% increase[68]. Accounting Policies - The company adjusted its accounting policies in accordance with the new revenue standards effective from January 1, 2020, impacting the reporting of contract liabilities[92]. - The company has implemented changes in accounting policies to enhance financial reporting accuracy[100].

Financial Performance - The company's operating revenue for the first half of 2020 was approximately RMB 980.20 million, representing an increase of 8.96% compared to RMB 899.62 million in the same period last year[25]. - The net profit attributable to shareholders of the listed company reached approximately RMB 110.50 million, a significant increase of 72.82% from RMB 63.94 million in the previous year[28]. - The net profit after deducting non-recurring gains and losses was approximately RMB 109.37 million, up 137.28% from RMB 46.09 million in the same period last year[28]. - The basic earnings per share for the first half of 2020 was RMB 0.28, a 75% increase compared to RMB 0.16 in the same period last year[29]. - The weighted average return on net assets increased to 8.60%, up 2.79 percentage points from 5.81% in the previous year[29]. - The total operating revenue for the first half of 2020 reached RMB 980,200,686.68, an increase from RMB 899,624,258.00 in the same period of 2019, representing an increase of approximately 8.9%[134]. - Operating profit for the first half of 2020 was RMB 123,083,105.74, compared to RMB 58,413,880.54 in the first half of 2019, showing a significant increase of approximately 110.8%[138]. - Net profit for the first half of 2020 was RMB 108,936,049.75, up from RMB 55,228,962.10 in the same period of 2019, reflecting an increase of approximately 96.9%[138]. - The total comprehensive income of RMB 108,910,704.14 for the first half of 2020, compared to RMB 55,349,495.01 in the same period of 2019, an increase of approximately 96.9%[140]. Cash Flow and Assets - The net cash flow from operating activities was approximately RMB 68.97 million, a decrease of 61.74% compared to RMB 180.27 million in the same period last year[28]. - The total assets at the end of the reporting period were approximately RMB 1,968.20 million, an increase of 2.96% from RMB 1,911.66 million at the end of the previous year[28]. - The net cash flow from operating activities decreased by 61.74% to approximately ¥68.97 million, mainly due to an increase in operating receivables[51]. - The total current assets amounted to approximately CNY 1,504.34 million, a decrease from CNY 1,537.90 million at the end of 2019, reflecting a decline of about 2.4%[122]. - The cash and cash equivalents were reported at CNY 1,124.68 million, down from CNY 1,198.92 million, indicating a decrease of approximately 6.2%[122]. - The total liabilities amounted to ¥664,760,288.32, compared to ¥656,980,767.40, showing a slight increase of about 1.1%[125]. - The cash inflow from investment activities was ¥215,000,000.00, significantly lower than ¥702,000,000.00 in the previous period, reflecting reduced investment recovery[155]. - The cash and cash equivalents at the end of the period were ¥181,394,209.51, a decrease from ¥219,648,524.60 in the previous period[155]. Market and User Growth - The average monthly active user count for the digital reading platform was 170 million, indicating sustained user growth[45]. - The user base for online literature in China reached 455 million by March 2020, with a growth of 23.37 million users since the end of 2018[34]. - The digital reading market in China reached a scale of 28.88 billion yuan in 2019, reflecting robust market growth[33]. - The global digital reading market revenue was 13.69 billion USD in 2019, indicating a growing international market[35]. Research and Development - The company holds 276 patents and 122 software copyrights, showcasing its strong research and development capabilities[40]. - R&D expenses rose by 18.97% to approximately ¥71.55 million, driven by higher salaries for R&D personnel[51]. - Research and development expenses increased to RMB 71,548,922.02 in the first half of 2020, compared to RMB 60,141,102.61 in the first half of 2019, marking an increase of approximately 18.5%[134]. Risks and Challenges - The company faces risks from regulatory adjustments in the internet digital reading industry, which could impact business stability and operations[60]. - Intense market competition in the digital reading sector poses a risk to the company's competitive advantage and market position[61]. - The prevalence of copyright infringement and piracy in digital content directly affects the company's sales revenue and operational performance[61]. - There is a risk of losing core management and technical personnel due to increased competition for talent in the industry[62]. - Insufficient innovation in business models may hinder the company's ability to adapt to market changes and achieve performance targets[62]. Shareholder and Governance Matters - The company does not plan to distribute profits or increase capital reserves through stock issuance for the first half of 2020[8]. - The company has committed to not transferring or managing shares held by its actual controllers for 36 months post-IPO[69]. - The company has outlined a strategy to avoid conflicts of interest and ensure that any business opportunities are directed towards the company[75]. - The company has established a lock-up period for shares, extending if the stock price falls below the issue price for 20 consecutive trading days post-listing[73]. - The company will take necessary actions to maintain compliance with listing conditions regarding share distribution after implementing stock price stabilization measures[76]. Corporate Social Responsibility - The company donated 1 million RMB each to Hubei Provincial People's Hospital and Wuhan University Zhongnan Hospital to support COVID-19 prevention efforts[104]. - The company has established and maintained reading rooms in impoverished areas and trained 140 disabled individuals, with 50 successfully employed, achieving an average monthly income exceeding 2,000 RMB[101]. - The company will continue its "Cultural Dream Building" and "Assistive Employment for Disabled" projects to provide more job opportunities for impoverished individuals[105]. Audit and Compliance - The company has reappointed Rongcheng Accounting Firm as its auditor for the fiscal year 2020, which was approved at the 2019 annual shareholders' meeting[88]. - There are no significant litigation or arbitration matters reported during the reporting period, indicating a stable legal environment for the company[88]. - The company has not encountered any issues with non-standard audit reports, indicating a clean financial record for the reporting period[88]. - The company maintains a continuous operation basis for its financial reporting, indicating stability in its business model[188].

Financial Performance - Net profit attributable to shareholders increased by 78.24% to CNY 55,222,739.73 year-on-year[10] - Operating revenue rose by 9.25% to CNY 491,237,835.90 compared to the same period last year[10] - Basic earnings per share increased by 75% to CNY 0.14[10] - Operating profit for Q1 2020 reached CNY 63,843,537.88, up from CNY 31,320,811.92 in Q1 2019, representing a growth of 104.5%[42] - The company reported a net profit of CNY 55,794,680.00 for Q1 2020, compared to CNY 30,427,118.34 in Q1 2019, marking an increase of 83.4%[42] - Total comprehensive income amounted to CNY 46,522,945.97, compared to CNY 19,729,409.14 in the previous period[50] Assets and Liabilities - Total assets increased by 6.36% to CNY 2,033,310,439.30 compared to the end of the previous year[10] - Total liabilities increased to ¥722,837,646.10 from ¥656,980,767.40, representing a growth of approximately 10.05%[32] - Total equity rose to ¥1,310,472,793.20 compared to ¥1,254,676,026.29, marking an increase of about 4.45%[32] - Current assets totaled ¥1,398,791,397.11, up from ¥1,324,650,233.27, reflecting a growth of approximately 5.58%[36] - Non-current assets totaled ¥425,194,762.19, up from ¥403,963,091.16, indicating a growth of about 5.67%[36] Cash Flow - Net cash flow from operating activities decreased by 61.28% to CNY 36,327,984.22 compared to the previous year[10] - Cash flow from operating activities generated a net cash inflow of CNY 36,327,984.22, down from CNY 93,824,825.35 year-over-year[55] - Cash inflow from sales of goods and services was CNY 447,120,163.78, a decrease of 9.6% from CNY 494,824,730.32 in the same quarter last year[52] - Cash outflow for purchasing goods and services was CNY 226,201,794.42, down from CNY 290,929,062.29, reflecting a 22.2% reduction[52] - Cash flow from investment activities resulted in a net outflow of CNY 144,860,365.89, compared to a net outflow of CNY 285,928,748.50 in the previous year[55] Shareholder Information - The number of shareholders at the end of the reporting period was 28,953[12] - The top two shareholders, Zhang Lingyun and Cheng Xiangjun, collectively hold 59.31% of the company's shares[12] Taxation - The income tax expense surged by 591.54% to ¥5,694,563.51 from ¥823,463.58, attributed to increased business volume leading to higher tax liabilities[19] - The company reported a 197.79% increase in taxes and surcharges to ¥2,919,903.31 from ¥980,535.77, driven by growth in business activities[19] - Tax expenses for Q1 2020 were CNY 5,694,563.51, significantly higher than CNY 823,463.58 in Q1 2019, reflecting a growth of 591.5%[42] Investments and Strategic Plans - The company plans to introduce Baidu Group as a strategic investor through a non-public issuance of A-shares, enhancing collaboration in strategic investment and digital content licensing[20] - The company received acceptance from the China Securities Regulatory Commission for its application regarding the non-public issuance of A-shares, although approval remains uncertain[22]

Financial Performance - In 2019, the company's operating revenue was approximately CNY 1.88 billion, a decrease of 1.09% compared to CNY 1.90 billion in 2018[22]. - The net profit attributable to shareholders of the listed company reached approximately CNY 161 million, an increase of 15.57% from CNY 139 million in 2018[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 140 million, reflecting a growth of 9.26% compared to CNY 128 million in 2018[22]. - The net cash flow from operating activities significantly increased by 115.40% to approximately CNY 309 million, compared to CNY 143 million in 2018[22]. - The gross profit margin for 2019 was 37.58%, an increase of 8.12 percentage points year-on-year, reflecting improved profitability[41]. - The company's total revenue for 2019 was CNY 1,882,346,953.45, a slight decrease of 1.09% compared to the previous year, while the gross profit margin increased by 8.12 percentage points to 37.58%[50]. - Digital reading platform revenue was CNY 1,583,827,579.94, down 5.55% year-on-year, but the gross profit margin improved by 7.47 percentage points to 35.33%[50]. - The company achieved a net profit of 161.00 million yuan, representing a year-on-year growth of 15.57%[41]. - The revenue from copyright products grew by 91.17% to CNY 261,644,938.25, with a gross profit margin of 51.98%[50]. - The total revenue for the year 2019 was approximately 270.49 million, a decrease of 3.18 million compared to the previous year, representing a decline of about 1.16%[132]. - The company reported a user base growth, with a total of 267.31 million users, indicating a slight decrease from the previous year[132]. - The company reported a total revenue of CNY 1,647,406,008.63 from sales of goods and services, down 5.1% from CNY 1,736,960,719.61 in 2018[187]. Dividends and Shareholder Returns - The company proposed a cash dividend of CNY 1.50 per 10 shares, based on a total share capital of 40.1 million shares as of December 31, 2019[6]. - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares for the year 2019, totaling 60,150,000 RMB, which represents 37.36% of the net profit attributable to ordinary shareholders[83]. - The cash dividend for 2018 was 1.10 RMB per 10 shares, amounting to 44,110,000 RMB, which accounted for 31.66% of the net profit attributable to ordinary shareholders[83]. - The company distributed dividends totaling CNY 44,110,000.00 in 2019, compared to CNY 13,634,000.00 in 2018, indicating a significant increase in shareholder returns[188]. Assets and Liabilities - Total assets grew by 20.12% to CNY 1,911,656,793.69 from CNY 1,591,391,803.09 in the previous year[24]. - The company's total liabilities increased to CNY 656,980,767.40 in 2019 from CNY 473,881,673.30 in 2018, representing a growth of about 38.6%[170]. - The total equity attributable to shareholders rose to CNY 1,240,683,659.45 in 2019, up from CNY 1,113,099,889.19 in 2018, indicating an increase of approximately 11.4%[171]. - Cash and cash equivalents reached CNY 1,198,923,537.70 in 2019, compared to CNY 1,031,575,880.67 in 2018, marking a growth of around 16.2%[169]. - The company's inventory stood at CNY 48,131,948.79 as of December 31, 2019, with no prior year data provided for comparison[169]. - The company's retained earnings increased to CNY 412,380,911.94 in 2019 from CNY 311,474,874.80 in 2018, showing a growth of approximately 32.4%[171]. Research and Development - Research and development expenses for 2019 were 120.07 million yuan, a 6.56% increase from the previous year, highlighting the company's commitment to innovation[41]. - The company has developed 212 patents and 116 software copyrights, showcasing its strong R&D capabilities[37]. - The company is committed to increasing its R&D investment to drive innovation in its product lines[133]. - Research and development expenses for 2019 were CNY 120,065,447.12, slightly up from CNY 112,679,245.69 in 2018, highlighting continued investment in innovation[177]. Market and User Engagement - The digital reading user base in China reached 740 million, growing by 1.4% year-on-year[33]. - The digital reading market size is projected to reach CNY 20.48 billion, with a year-on-year growth of 21%[33]. - The average monthly active users reached 140 million, indicating strong user engagement and retention on the digital reading platform[36]. - The company is focused on expanding its digital reading services and enhancing its hardware product offerings[22]. - The company aims to enhance its product offerings and is focusing on new technology development to improve user engagement and retention[133]. - The company plans to enhance user scale and traffic resources by deepening partnerships with major mobile manufacturers and internet platforms[69]. Risks and Challenges - The report includes a risk statement regarding future plans and development strategies, emphasizing the importance of investor awareness of investment risks[7]. - The company faces risks related to potential regulatory changes in the internet digital reading industry, which could impact its business operations[73]. - The company has identified risks related to increasing competition in the digital reading industry, which could impact its market position and operational performance[74]. - The company faces risks from copyright infringement in the digital content sector, which could adversely affect sales revenue due to the prevalence of piracy[75]. - There is a risk of losing core management and technical personnel due to intensified competition for talent in the industry[76]. - The company acknowledges the risk of insufficient business model innovation, which may hinder its ability to adapt to market changes and achieve performance targets[77]. Corporate Governance and Compliance - The company has maintained a standard unqualified audit opinion from the accounting firm Rongcheng[5]. - The company has not violated any decision-making procedures for providing guarantees[8]. - The company has committed to preventing non-operational fund occupation and ensuring compliance with relevant laws and regulations[93]. - The company emphasizes the importance of corporate governance and investor relations, ensuring shareholder rights and stable returns[113]. - The company has established a comprehensive internal control system in compliance with relevant laws and regulations, ensuring effective governance[143]. - The company actively engages in investor relations, ensuring timely and fair disclosure of information through designated media[144]. Social Responsibility - The company actively engaged in social responsibility by launching the "National Reading Cultural Dream" project, donating reading rooms and e-readers to impoverished areas[109]. - In 2019, the company established reading rooms in dozens of primary schools in Ganzi Prefecture, Sichuan, and donated reading materials[110]. - The company donated a total of 2 million yuan to hospitals in Hubei Province for COVID-19 prevention efforts[113]. - The company has trained over 100 disabled individuals in Hebei Province, helping many achieve employment[111]. - The company plans to continue its "National Reading Cultural Dream" project, ensuring ongoing support and updates for donated reading rooms over the next three years[112]. Shareholder Structure - The total share capital of the company is 401,000,000 shares, with 237,848,465 shares under limited sale conditions and 163,151,535 shares under unrestricted sale conditions[117]. - The number of shareholders at the end of the reporting period is 23,995, a decrease from 28,953 at the end of the previous month[119]. - The top shareholder, Zhang Lingyun, holds 121,973,572 shares, representing 30.42% of the total shares, all of which are under pledge[121]. - The second-largest shareholder, Cheng Xiangjun, owns 115,874,893 shares, accounting for 28.90% of the total shares, also under pledge[121]. - The company does not have a controlling shareholder situation, indicating a more distributed ownership structure[125]. Future Outlook - Future outlook includes plans for market expansion and potential mergers and acquisitions to strengthen its market position[133]. - The financial guidance for the next fiscal year indicates a cautious optimism with expectations of revenue stabilization[132]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[185].

Financial Performance - Net profit attributable to shareholders decreased by 5.92% to CNY 108,039,361.37[10] - Operating revenue for the first nine months decreased by 2.28% to CNY 1,386,496,470.70[10] - Basic and diluted earnings per share decreased by 6.90% to CNY 0.27[10] - Net profit for the first three quarters of 2019 reached CNY 101,647,465.98, down from CNY 113,829,660.93 in the same period of 2018, indicating a decline of 10.5%[43] - Net profit for Q3 2019 reached ¥50.09 million, significantly up from ¥20.43 million in Q3 2018, representing a growth of 144.5%[56] - The net profit attributable to shareholders of the parent company for Q3 2019 was ¥44.10 million, compared to ¥36.39 million in Q3 2018, an increase of 21.5%[49] Assets and Liabilities - Total assets increased by 7.06% year-on-year to CNY 1,703,757,401.25[10] - The total assets reached ¥1,703,757,401.25, up from ¥1,591,391,803.09, indicating overall growth[31] - Total assets as of September 30, 2019, amounted to CNY 1,583,843,515.05, an increase from CNY 1,487,716,751.51 at the end of 2018, representing a growth of 6.4%[37] - Current assets totaled CNY 1,228,483,908.50, slightly down from CNY 1,245,526,330.24 at the end of 2018, a decrease of 1.4%[35] - Non-current assets increased to CNY 355,359,606.55 from CNY 242,190,421.27, marking a significant growth of 46.8%[35] - The total liabilities amounted to 473,881,673.30 RMB, with no adjustments from the previous reporting period[74] Cash Flow - Cash flow from operating activities increased by 4.48% to CNY 111,586,685.76[10] - Net cash flow from operating activities for the first three quarters of 2019 was CNY 85,908,860.02, slightly up from CNY 84,754,587.35 in 2018, indicating stable operational performance[64] - Cash inflow from operating activities totaled CNY 1,272,664,800.38 in 2019, down from CNY 1,329,948,466.50 in 2018, reflecting a decrease of approximately 4.5%[64] - Cash outflow for purchasing goods and services was CNY 721,382,828.44 in 2019, compared to CNY 809,611,189.74 in 2018, showing a reduction of about 10.9%[64] - Cash inflow from investment activities reached CNY 1,365,545,510.00 in 2019, significantly higher than CNY 731,000,000.00 in 2018, marking an increase of approximately 86.9%[64] - The company reported a net cash decrease of CNY -221,738,445.70 in 2019, compared to CNY -86,467,115.30 in 2018, highlighting challenges in cash management[61] Shareholder Equity - The total equity attributable to shareholders increased to ¥1,187,763,182.34, compared to ¥1,113,099,889.19, reflecting a positive trend in shareholder value[31] - Shareholders' equity rose to CNY 1,118,401,049.03 from CNY 1,057,472,733.38, reflecting an increase of 5.8%[37] - The company has a total of RMB 369,535,586.42 in capital reserves, supporting its equity base[81] Expenses and Costs - Sales expenses rose to ¥330,005,830.01, reflecting a 52.20% increase primarily from higher promotional costs, advertising, and salaries[18] - Total operating costs for Q3 2019 were CNY 450,046,543.41, compared to CNY 450,749,911.91 in Q3 2018, showing a decrease of 0.2%[39] - Research and development expenses for Q3 2019 were ¥32.35 million, slightly down from ¥34.09 million in Q3 2018, reflecting a focus on efficiency[53] Government Support and Other Income - The company received government subsidies amounting to CNY 5,519,133.32 for the year-to-date[12] - Other income rose to ¥9,315,304.56, an 81.43% increase influenced by input tax policies[18] Investment Activities - Investment income surged to ¥31,130,181.85, marking a 184.57% increase due to the disposal of long-term equity investments and profit growth from joint ventures[18] - Cash flow from investing activities showed a net outflow of ¥328,913,104.31, a 72.43% increase attributed to higher net purchases of structured deposits[18] Market Strategy - The company plans to expand its market presence and invest in new product development to drive future growth[50]

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2019, representing a year-on-year increase of 15%[19]. - Revenue for the first half of the year was CNY 899,624,258, a decrease of 4% compared to the same period last year[24]. - The company expects to achieve a revenue target of RMB 2.5 billion for the full year 2019, which would represent a growth of 18% year-on-year[19]. - Total operating revenue for the first half of 2019 was RMB 899,624,258, a decrease of 4.0% compared to RMB 937,151,854 in the same period of 2018[135]. - Operating profit for the first half of 2019 was RMB 58,413,880.54, down 25.2% from RMB 78,074,510.91 in the first half of 2018[135]. - Net profit for the first half of 2019 was RMB 58,014,737.87, a decrease of 29.9% compared to RMB 82,521,740.36 in the same period of 2018[135]. - The net profit attributable to shareholders was CNY 63,937,125, down 18.51% year-over-year[24]. - The net profit after deducting non-recurring gains and losses was CNY 46,091,711, a decline of 35.36% compared to the previous year[24]. - The company's net profit for the first half of 2019 was CNY 54,946,131.85, an increase from CNY 47,323,580.89 in the same period of 2018, representing a growth of approximately 16.5%[142]. - The total comprehensive income for the first half of 2019 was CNY 55,349,495.01, compared to CNY 78,044,511.78 in the same period of 2018, indicating a decrease of about 29.1%[144]. User Engagement and Market Position - User data indicated that the active user base reached 30 million, with a growth rate of 20% compared to the same period last year[19]. - The number of monthly active users exceeded 120 million, maintaining a leading position in the domestic digital reading market[33]. - Monthly active users on the reading platform exceeded 120 million, maintaining a leading position in the industry[42]. - The company has implemented a new marketing strategy that increased user engagement by 35%[19]. Research and Development - Research and development expenses increased by 30% to RMB 150 million, focusing on enhancing digital content delivery technologies[19]. - The company holds 149 patents and 94 software copyrights, reflecting its strong R&D capabilities[36]. - Research and development expenses increased to CNY 58,034,997.72 in the first half of 2019, compared to CNY 47,320,436.48 in the same period of 2018, reflecting a rise of approximately 22.5%[142]. Strategic Initiatives - New product launches included the latest e-reader model, which saw a 25% increase in sales compared to the previous model[19]. - The company is expanding its market presence in Southeast Asia, aiming for a 10% market share by the end of 2020[19]. - The company increased its investment in original content, acquiring a 17.74% stake in the original literature supplier "Hongshu Network" to enhance its competitive edge[42]. - The company established a film company to expand its copyright development efforts, aiming to create a commercial closed loop[43]. - The company launched a free reading service, which has rapidly accumulated a large user base, although it has led to increased promotional spending in the short term[43]. Financial Position and Assets - As of June 30, 2019, the total current assets amounted to ¥1,351,045,093.96, a decrease of 1.5% from ¥1,371,789,192.34 on December 31, 2018[125]. - The total assets as of June 30, 2019, were ¥1,670,900,780.22, compared to ¥1,591,391,803.09, indicating an increase of approximately 5%[127]. - The total liabilities as of June 30, 2019, were ¥524,208,898.85, up from ¥473,881,673.30, indicating an increase of approximately 10.6%[127]. - The total equity attributable to shareholders reached ¥1,134,493,544.46, an increase from ¥1,113,099,889.19, which is a growth of about 1.9%[127]. - The cash and cash equivalents stood at ¥1,082,659,365.73, up from ¥1,031,575,880.67, marking an increase of approximately 4.9%[125]. Risks and Challenges - The company faces risks from increasing competition in the digital reading industry, which could impact its market position and operational performance[57]. - There is a risk of insufficient innovation in the business model, which may hinder the company's ability to adapt to market changes and achieve performance targets[58]. - The company is at risk of losing key management and technical personnel due to intensified competition for talent in the industry[59]. - The prevalence of piracy in digital content poses a significant threat to the company's revenue from digital reading services[59]. - Regulatory changes in the digital reading industry could adversely affect the company's business operations and stability[59]. Shareholder Commitments and Governance - The controlling shareholders have committed to not transferring their shares for 36 months post-IPO, ensuring stability in shareholding[65]. - The company will ensure that any necessary related party transactions are conducted fairly and disclosed in accordance with regulations[71]. - The company has established a commitment to avoid any indirect control or management roles in competing entities during their tenure and for six months thereafter[71]. - The company will stabilize its stock price if it falls below the latest audited net asset value for 20 consecutive trading days, with measures including a share buyback plan requiring a two-thirds majority approval from shareholders[71]. Social Responsibility - The company actively engaged in social responsibility by launching the "National Reading Cultural Dream" public welfare project, donating reading rooms and e-readers to impoverished areas and minority regions[95]. - The company established love reading rooms in several primary schools in Ganzi Tibetan Autonomous Prefecture and Inner Mongolia, donating e-readers and books to promote reading habits[99]. - The company plans to continue its public welfare project, ensuring the reading rooms are equipped with necessary facilities and regularly updating the digital books available in the e-readers over the next three years[100].