Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the year 2020, representing a growth of 15% compared to the previous year[9]. - The company's operating revenue for 2020 was ¥184,935,603.34, a decrease of 65.76% compared to ¥540,047,298.34 in 2019[15]. - The net profit attributable to shareholders for 2020 was a loss of ¥784,855,283.01, representing an increase in loss of 42.40% from a loss of ¥551,157,816.39 in 2019[15]. - The total revenue for 2020 was approximately ¥184.94 million, a decrease of 65.76% year-on-year, while the net profit attributable to shareholders was approximately -¥784.86 million, an increase in loss of 42.40% compared to the previous year[30]. - The company reported a net profit margin of -34.71% for 2020, compared to -18.81% in 2019[15]. - The company reported a net loss of ¥784,855,283.01 for the year 2020, with significant differences between net cash flow from operating activities and net profit[58]. Cash Flow and Assets - The net cash flow from operating activities for 2020 was ¥276,500,167.82, a significant increase of 2,811.77% compared to a negative cash flow of ¥10,196,281.77 in 2019[15]. - The company's cash and cash equivalents increased by 86.48% compared to the beginning of 2020, primarily due to reduced production and investment expenditures in film and television projects and the recovery of accounts receivable[24]. - The total assets at the end of 2020 were ¥2,645,212,770.21, a decrease of 25.48% from ¥3,549,759,961.22 at the end of 2019[15]. - The net assets attributable to shareholders at the end of 2020 were ¥1,868,972,592.25, down 29.57% from ¥2,653,827,875.26 at the end of 2019[15]. - The company's cash flow from financing activities saw a drastic decrease of 96.99%, totaling ¥22,544,000.00 in inflows[57]. Market and Strategic Outlook - The company has outlined a positive outlook for 2021, projecting a revenue growth of 20% based on new product launches and market expansion strategies[9]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[9]. - A strategic acquisition of a smaller media company is in progress, expected to enhance content offerings and increase market competitiveness[9]. - The company aims to strengthen its main business and deepen its strategic layout in the cultural industry, focusing on high-quality productions that align with socialist values[23]. - The company is actively developing new projects, with several dramas such as "Ten Years of Warmth" and "The Legend of Yao Xiang" currently in production, totaling 164 episodes across three series[32]. Risks and Challenges - The company has identified potential risks, including market competition and regulatory changes, which may impact future performance[3]. - The company faces significant risks in the television industry, including intense market competition and a supply-demand imbalance leading to increased competition and potential market share loss[89]. - The company has a large accounts receivable balance, primarily due to the timing of payments from clients after the airing of television dramas, which increases financial management difficulty and cash flow risks[91]. - The company is currently involved in multiple lawsuits related to securities false statements, with a total claim amount of 24,524,440 CNY, which may impact future profits[91]. Production and Content Development - The company has introduced two new product lines in 2020, contributing to 15% of total revenue, indicating successful market entry[9]. - The number of television dramas produced and registered in 2020 was 670, a decrease of 26% compared to 2019, indicating significant industry challenges[31]. - The company holds adaptation rights for numerous scripts and novels, ensuring a robust pipeline of content for future productions[27]. - The company is committed to producing high-quality dramas that align with mainstream values, focusing on diverse themes and genres[31]. Shareholder and Governance - No cash dividends will be distributed to shareholders for the fiscal year 2020, as the company aims to reinvest profits into growth initiatives[3]. - The company did not implement any profit distribution or capital reserve transfer to increase share capital for the year 2020 due to negative distributable profits[99]. - The company has established a commitment to maintain the independence of its personnel, assets, finances, and operations from its controlling enterprises[107]. - The company held three shareholder meetings in 2020, including one annual and two extraordinary meetings[143]. Social Responsibility and Awards - The company engaged in social responsibility initiatives, including a charity auction that raised over ¥170,000 for children's welfare projects[34]. - The company received multiple awards for its productions, including "Annual Excellent Network Drama" for "Liuli" at the China Broadcasting and Television Festival[37].

[Important Notice](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board and senior management guarantee the authenticity, accuracy, and completeness of this quarterly report - The company's Board of Directors, Supervisory Committee, and all directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of this quarterly report's content, and assume legal responsibility[4](index=4&type=chunk) - The company's legal representative Zhao Zhicheng, the person in charge of accounting, and the head of the accounting department Zeng Jiannan all declare their guarantee of the authenticity, accuracy, and completeness of the financial statements in the quarterly report[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section presents key financial data for Q1 2021 and details on the company's shareholder structure [Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In Q1 2021, revenue grew significantly due to the artist agency business, but net profit after non-recurring items declined and operating cash flow was negative Key Financial Indicators for Q1 2021 | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 28,025,357.95 | 11,729,739.38 | 138.93% | | Net Profit Attributable to Shareholders (RMB) | 18,551,902.22 | 14,304,563.63 | 29.69% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (RMB) | 18,369,599.88 | 29,018,252.03 | -36.70% | | Net Cash Flow from Operating Activities (RMB) | -260,961,310.44 | -15,186,287.15 | Net cash outflow increased 1,618.40% | | Basic Earnings Per Share (RMB/Share) | 0.0189 | 0.0146 | 29.45% | | Total Assets (RMB) | 2,555,103,361.38 | 2,645,212,770.21 | -3.41% | - Non-recurring gains and losses for the period totaled **RMB 182,302.34**, primarily from government grants[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company had 31,721 common shareholders, with major shareholders having concert party relationships and significant portions of their shares pledged or frozen - At the end of the reporting period, the total number of common shareholders was **31,721**[11](index=11&type=chunk) Top 5 Shareholders' Holdings | Shareholder Name | Shareholding Ratio | Number of Shares | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | | H&R Century Union | 10.87% | 106,651,376 | Pledged 105,504,587 | | Zhong Junyan | 6.17% | 60,569,259 | Pledged 60,569,258, Frozen 60,569,259 | | Tianjin H&R | 5.91% | 57,938,783 | Pledged 56,410,000 | | Qingyou Qianhe | 5.22% | 51,241,586 | Pledged 51,241,586 | | Zhejiang H&R | 5.01% | 49,194,111 | Pledged 49,194,110, Frozen 49,194,111 | - Two groups of concert parties exist among shareholders: 1) H&R Century Union, Tianjin H&R, Zhejiang H&R, Zhong Junyan, etc; 2) Qingyou Qianhe, Qingyou Ruihe, Hongdao Tianhua, Shenzhen Hongdao, etc[11](index=11&type=chunk) [Significant Matters](index=6&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details significant financial fluctuations, major litigation, status of commitments, and the progress of projects funded by raised capital [Analysis of Financial Indicator Changes](index=6&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Revenue increased due to the artist agency business, while cash outflows from investing and financing activities grew, and asset impairment losses were recognized - Operating revenue increased by **138.93%** year-on-year, mainly due to a significant recovery in artist agency income compared to the pandemic-affected period last year[15](index=15&type=chunk) - Net cash outflow from operating activities increased by **1618.40%**, primarily due to an increase in filming projects and payments of profit shares to co-producers[15](index=15&type=chunk) - Net cash outflow from investing activities increased by **141.66%**, mainly due to increased external equity investments[15](index=15&type=chunk) - A new asset impairment loss of **RMB 17,658,059.29** was recognized, resulting from increased provisions for certain film and television drama projects[15](index=15&type=chunk) [Progress of Significant Matters](index=7&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company is involved in two major litigations: a contract dispute over a TV series and investor claims for false statements, with provisions made accordingly - The company is in litigation and counter-litigation with Shanghai New Culture over the 'The Apocalypse of Fengshen' project, with amounts in dispute of **RMB 147 million** and **RMB 144 million** respectively; the case is in the first instance[16](index=16&type=chunk) - The company faces 27 lawsuits from plaintiffs regarding securities misrepresentation, with a total claim of approximately **RMB 24.52 million**, for which an equivalent provision was recognized in fiscal year 2020[16](index=16&type=chunk) [Commitment Matters](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) While no commitments were overdue, the completion of a 2018 performance commitment remains uncertain due to a qualified audit opinion on H&R Century Pictures - Due to the qualified opinion issued by the auditor on the 2018 financial statements of H&R Century Pictures, the completion status of its performance commitment for that year **could not be determined**[17](index=17&type=chunk) - The company's annual financial statements for 2019 and 2020 also received **non-standard audit reports**[17](index=17&type=chunk) - The company stated that the final confirmation of the performance commitment's completion will be made after the uncertainty causing the qualified opinion is resolved[18](index=18&type=chunk) [Use of Raised Funds](index=9&type=section&id=%E5%85%AD%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E6%8A%95%E8%B5%84%E9%A1%B9%E7%9B%AE%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5) The progress of four TV drama projects funded by raised capital is slow, with over RMB 100 million in a dedicated account frozen due to litigation Progress of Investment Projects Funded by Raised Capital | Project Name | Planned Investment (RMB 10k) | Cumulative Investment (RMB 10k) | Investment Progress | Status | | :--- | :--- | :--- | :--- | :--- | | TV Series 'Mysterious Lotus Casebook' | 10,000.00 | 0.00 | 0.00% | Script revision | | TV Series 'The Empire of Yongle' | 25,000.00 | 24,519.99 | 98.08% | Under review for modification | | TV Series 'South Wind Knows My Mood' | 6,000.00 | 4,917.70 | 81.96% | Post-production | | TV Series 'In the Deep' | 4,000.00 | 4,000.00 | 100.00% | Distribution license obtained | - The slow progress of investment projects is attributed to industry regulations, market demand changes, post-production difficulties, and the impact of the pandemic[23](index=23&type=chunk) - As of the end of 2020, approximately **RMB 103 million** in the company's dedicated fund account was frozen due to the 'The Apocalypse of Fengshen' contract dispute[23](index=23&type=chunk) [Significant Contracts](index=10&type=section&id=%E5%85%AB%E3%80%81%E6%97%A5%E5%B8%B8%E7%BB%8F%E8%90%A5%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C) The company signed a RMB 558 million contract with Alibaba for two film and television projects, with an advance payment received in April 2021 - The company signed a contract with Alibaba for two film and television projects totaling **RMB 558 million**[24](index=24&type=chunk) - As of the reporting period, one drama is in post-production and the other is in filming; the company received an advance payment of **RMB 70.2 million** in April 2021[24](index=24&type=chunk) [Financial Statements](index=11&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides an analysis of the consolidated balance sheet, income statement, and cash flow statement for Q1 2021 [Consolidated Balance Sheet Analysis](index=11&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of Q1 2021, total assets were RMB 2.56 billion, with a decrease in cash and an increase in inventory, while accounts payable decreased significantly [Consolidated Income Statement Analysis](index=15&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) Q1 2021 revenue was RMB 28.03 million and net profit was RMB 18.55 million, though profits were impacted by asset impairment losses and negative investment income [Consolidated Cash Flow Statement Analysis](index=18&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The company's cash flow deteriorated, with a significant net operating cash outflow of RMB 261 million due to increased payments for production activities [Audit Report](index=21&type=section&id=%E4%B8%89%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's first-quarter 2021 financial report has not been audited - The company's first-quarter report is unaudited[50](index=50&type=chunk)

Group 1: Event Overview - The event is the "2020 Online Collective Reception Day for Investors" organized by the Chongqing Securities Regulatory Bureau and the Chongqing Listed Companies Association, in collaboration with Shenzhen Panorama Network Co., Ltd. [1] - The event will take place on November 26, 2020, from 15:00 to 16:30 [1]. Group 2: Company Participation - The representatives from the company attending the online investor reception include Chairman and CEO Zhao Zhicheng, Director Zhong Junyan, CFO Zeng Jiannan, and Board Secretary Wang Zejia [2]. - The company encourages investors to actively participate in the event [2].

Financial Performance - Operating revenue for the reporting period was approximately -¥8.15 million, representing a decline of 128.91% compared to the same period last year[6]. - Net profit attributable to shareholders of the listed company was approximately -¥25.06 million, a decrease of 99.23% year-on-year[6]. - Basic earnings per share were -¥0.0256, down 99.23% year-on-year[6]. - The company reported a significant decrease in revenue due to lower than expected broadcast episodes for certain projects[6]. - Total revenue for the third quarter was CNY 17,188,753.60, a significant decrease from CNY 137,397,326.78 in the same period last year, representing a decline of approximately 87.5%[42]. - The net profit for the third quarter was a loss of CNY 25,064,137.87, compared to a loss of CNY 12,583,044.59 in the previous year, indicating an increase in losses of approximately 99%[38]. - The company recorded a total profit of -19,469,211.42 CNY, compared to a profit of 380,076.06 CNY in the previous period, showing a significant loss[46]. Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥3.45 billion, a decrease of 2.93% compared to the end of the previous year[6]. - Total liabilities increased to CNY 940,699,591.58 from CNY 896,446,563.89, marking an increase of about 4.91%[28]. - The company’s non-current liabilities rose significantly, with estimated liabilities increasing to CNY 83,127,171.50 from CNY 27,067,098.90, an increase of approximately 207.36%[28]. - The total current assets as of September 30, 2020, were CNY 1,486,874,522.85, compared to CNY 1,453,986,732.31 as of December 31, 2019, reflecting an increase of approximately 2.26%[32]. Cash Flow - The net cash flow from operating activities was approximately ¥76.43 million, an increase of 24.40% compared to the previous period[6]. - The company reported a significant cash outflow from operating activities, with a net cash flow of -¥87,762,315.50, indicating a substantial decline compared to the previous year[14]. - Operating cash flow generated was 126,143,907.41 CNY, a recovery from a negative cash flow of -87,762,315.50 CNY in the prior period[49]. - The net cash flow from investment activities improved to 111,328,541.31 from -27,087,436.85 in the previous period, reflecting a positive turnaround in investment returns[52]. Shareholder Information - Net assets attributable to shareholders of the listed company were approximately ¥2.51 billion, down 5.61% year-on-year[6]. - The total number of ordinary shareholders at the end of the reporting period was 29,662[10]. - The company’s equity attributable to shareholders was 2,653,827,875.26, indicating a solid equity position[56]. Expenses and Income - Sales expenses surged by 206.03% to ¥174,033,413.83 primarily due to increased promotional costs for new dramas[14]. - Financial expenses decreased by 68.25% to ¥5,036,861.65 as a result of reduced bank loan balances[14]. - Other income increased by 335.78% to ¥15,228,556.22 due to subsidies received under local support policies[14]. - The company experienced a significant increase in credit impairment losses, totaling CNY 76,942,524.65, compared to CNY 17,670,272.57 in the previous year, reflecting a rise of approximately 335%[42]. Project Funding and Investments - The total amount of raised funds for projects is RMB 35,000 million, with an actual investment of RMB 4,000 million, resulting in an investment progress of 81.49%[19]. - The project "江山永乐" has received RMB 25,000 million in funding after terminating projects "盗情" and "楼兰 I" due to market uncertainties[19]. - The project "迷局破之深潜" has been fully funded with RMB 4,000 million, achieving 100% investment completion[19]. - The company has invested RMB 30,700 million in bank principal-protected financial products using temporarily idle raised funds[21]. Changes in Financial Position - The company adjusted its financial statements in accordance with new revenue and leasing standards, impacting the balance sheet[53]. - The company has no significant contracts or non-operating fund occupation by controlling shareholders during the reporting period[20][22].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥25,338,880.34, a decrease of 76.80% compared to ¥109,203,530.28 in the same period last year[15]. - The net profit attributable to shareholders of the listed company was -¥123,239,586.07, a decline of 775.31% from ¥18,249,234.85 in the previous year[15]. - The basic earnings per share were -¥0.1256, down 775.27% from ¥0.0186 in the previous year[15]. - The company reported a net profit excluding non-recurring gains and losses of -¥87,209,675.88, a decrease of 517.66% from ¥20,880,334.95 in the same period last year[15]. - The company reported a total operating revenue of 25.34 million yuan, a decrease of 76.80% compared to the same period last year[29]. - The net profit attributable to shareholders was -12.32 million yuan, a decline of 775.72% compared to the previous year[29]. - The company achieved a net cash flow from operating activities of 49.71 million yuan, a 133.32% improvement compared to the previous year[29]. - The company reported a significant loss of -36.03 million yuan from non-operating income, primarily due to litigation-related expenses[20]. - The company’s revenue from artist management increased by 125.85% to ¥31,888,009.07, while revenue from film and television projects saw a decline of 119.41%[37]. Assets and Liabilities - Total assets at the end of the reporting period were ¥3,542,641,643.31, a slight decrease of 0.20% from ¥3,549,759,961.22 at the end of the previous year[16]. - The net assets attributable to shareholders of the listed company decreased by 4.66% to ¥2,530,073,811.26 from ¥2,653,827,875.26 at the end of the previous year[16]. - The company's total liabilities increased from ¥896,446,563.89 to ¥1,012,567,832.05 during the same period[132]. - The company's accounts receivable decreased significantly from ¥1,263,166,213.66 to ¥661,873,633.67[131]. - The company's total equity attributable to shareholders decreased to CNY 4,496,846,517.29 from CNY 4,507,227,009.26, reflecting a decline in retained earnings[136]. Cash Flow - The net cash flow from operating activities improved to ¥49,714,871.25, a 133.32% increase compared to a net cash outflow of -¥149,202,052.95 in the same period last year[15]. - The company reported a net increase in cash and cash equivalents of ¥104,077,889.23, a decrease of 55.27% from ¥232,696,173.29, resulting from changes in cash flow from operating, investing, and financing activities[35]. - Cash flow from operating activities for the first half of 2020 was 49,714,871.25, compared to -149,202,052.95 in the first half of 2019, indicating a positive turnaround[145]. - The company reported a decrease in sales revenue from providing services, with cash received from sales dropping to 199,082,771.00 in the first half of 2020 from 656,987,081.84 in the same period of 2019[144]. Strategic Focus and Operations - The company has not disclosed any significant new product developments or market expansion strategies in this report[4]. - The company aims to strengthen the commercial monetization of its artist management business and build a leading artist management service platform in China[29]. - The company’s strategic focus remains on content production and artist management despite ongoing challenges in the film and television industry due to the pandemic[29]. - The company plans to continue producing high-quality films and television dramas that align with mainstream values, while also diversifying content themes and types[30]. - The company aims to enhance content production quality and risk control by collaborating with broadcasting platforms and exploring diverse content formats[30]. Shareholder Information - The total number of shares before the recent changes was 980,980,473, with 442,804,757 shares (45.14%) being subject to restrictions[103]. - The largest shareholder, Huanrui United, holds 10.87% of shares, totaling 106,651,376 shares[106]. - The total shareholding of the top 10 shareholders accounts for 18.67% of the company's total shares[109]. - The company has not conducted any repurchase transactions during the reporting period[107]. - The total number of common shareholders at the end of the reporting period is 27,014[106]. Legal and Compliance Issues - The company is under investigation by the China Securities Regulatory Commission for information disclosure violations, which is crucial for understanding the financial statements[71]. - The company is involved in a lawsuit with Shanghai New Culture Media Group regarding a contract dispute, with the amount in question being 146.78 million yuan[74]. - The company is facing a lawsuit from Stabiz s.r.o regarding a contract dispute, with a claim amount of 1.769 million yuan[74]. - The company is involved in multiple legal disputes, including a lawsuit for 1,499 million CNY related to alleged false statements leading to investment losses[75]. - The company has not engaged in any significant related party transactions during the reporting period[79]. Governance and Independence - The company has committed to ensuring the independence of its operations, including maintaining independent financial departments and separate bank accounts[61]. - The company has established measures to avoid competition with related parties and ensure compliance with market principles in related transactions[61]. - The company has a long-term commitment to maintaining the independence of its management and operations, ensuring that key personnel do not hold positions in other companies[61]. - The company has a structured governance framework to ensure independent decision-making processes within its board and management[61]. - The company guarantees that its financial personnel will not hold positions in other controlled enterprises[64]. Financial Reporting and Compliance - The half-year financial report for 2020 has not been audited[68]. - The company's financial statements comply with the requirements of the Accounting Standards for Business Enterprises, accurately reflecting the financial position and operating results for the periods ending June 30, 2019, and June 30, 2020[171]. - The company has not made any changes to its accounting policies or corrected prior period errors during the reporting period[158]. - The company’s financial statements are prepared based on the assumption of going concern, with no significant doubts about its ability to continue operations[169].

Business Focus and Strategy - The company reported a significant change in its main business focus, shifting to film production, artist management, and related entertainment services as of December 6, 2016[13]. - The company aims to strengthen its main business and deepen its strategic layout in the cultural industry[26]. - The company will continue to focus on drama production and artist management as core businesses, enhancing competitive advantages and business layout[92]. - The company is focusing on developing diverse content themes and types to align with the mainstream values of the new era[34]. - The company has a robust talent cultivation system with 47 signed artists, enhancing its core competitiveness[30]. - The company has a significant IP reserve and is strengthening copyright incubation efforts to enrich its quality IP portfolio[95]. Financial Performance - The company's operating revenue for 2019 was approximately ¥540 million, a decrease of 59.35% compared to ¥1.57 billion in 2018[16]. - The net profit attributable to shareholders was a loss of approximately ¥551 million, representing a decline of 269.79% from a profit of ¥324 million in 2018[16]. - The total assets at the end of 2019 were approximately ¥3.55 billion, down 27.93% from ¥4.91 billion at the end of 2018[16]. - The net assets attributable to shareholders decreased to approximately ¥2.65 billion, a decline of 22.13% from ¥3.45 billion in 2018[16]. - The basic earnings per share for 2019 was -¥0.56, compared to ¥0.33 in 2018, marking a decrease of 269.70%[16]. - The weighted average return on equity was -18.81% in 2019, down from 9.89% in 2018, indicating a significant decline in profitability[16]. - The company reported a total of ¥402 million in operating revenue for Q4 2019, which was a substantial increase compared to previous quarters[21]. - The total profit amounted to -¥616,124,690.91, a decrease of 275.51% compared to the previous year[33]. Revenue Breakdown - Revenue from film and television series and derivatives accounted for approximately 77.39% of total revenue, amounting to ¥418 million, down 62.48% from ¥1.11 billion in 2018[41]. - The artist management business generated approximately ¥122 million, representing 22.61% of total revenue, a decrease of 42.17% from ¥211 million in 2018[41]. - The company's revenue for the film industry was approximately ¥540 million, representing a year-over-year decrease of 6.33%[43]. - The revenue from film and derivative products was approximately ¥418 million, a decrease of 35.76% year-over-year[43]. - The revenue from artist management was approximately ¥122 million, with a gross margin of 94.42%[43]. Cash Flow and Investments - The total cash inflow from operating activities was approximately ¥1.39 billion, an increase of 14.27% year-over-year[57]. - The net cash outflow from operating activities decreased by 98.43%, amounting to approximately -¥10 million[57]. - The company reported an investment amount of 5,000,000 yuan for the reporting period, a decrease of 88.89% compared to 45,000,000 yuan in the previous year[66]. - The company’s cash and cash equivalents net increase was -117,679,132.56 yuan, a reduction in cash outflow by 76.21%[58]. - The company has incurred CNY 32.85 million in operational expenses for its wholly-owned subsidiary, which were covered by non-raised funds[72]. Governance and Compliance - The company is committed to improving its governance structure to align with modern corporate requirements, focusing on board effectiveness and management incentives[96]. - The company has established an independent financial department and accounting system, ensuring compliance with financial regulations and independent tax obligations[109]. - The company guarantees that all related party transactions are conducted at fair market prices and comply with legal procedures, minimizing unnecessary transactions[111]. - The company has made retrospective adjustments to its financial statements for the years 2013 to 2018 in accordance with the relevant accounting standards following the penalties received[125]. - The company received administrative penalties from the China Securities Regulatory Commission for failing to provide accurate financial data for the years 2013 to 2016, which affected the disclosure of significant asset restructuring documents[125]. Risks and Challenges - The company has outlined potential risks in its future development outlook, which investors should be aware of[3]. - The company anticipates challenges in the drama industry due to strict regulatory oversight and increasing market competition, leading to a potential oversupply of content[98]. - The company recognizes the risk of piracy affecting viewership and revenue, which could impact the profitability of high-quality productions[99]. - The company has experienced a significant slowdown in project progress and investment due to changes in the broadcasting environment and market demand, leading to a cautious approach in using raised funds for film and television projects[77]. Shareholder and Equity Information - The total number of shares is 980,980,473, with 442,804,757 shares (45.14%) being subject to restrictions[166]. - The controlling shareholders, including Huanshui United and Tianjin Huanshui, collectively held 289,815,273 shares, accounting for 29.54% of the total shares[173]. - 79.04% of the shares held by the controlling shareholders were pledged, totaling 229,064,656 shares, which is 23.35% of the company's total shares[173]. - The company did not conduct any repurchase transactions among the top 10 ordinary shareholders during the reporting period[172]. - The controlling shareholder is currently negotiating with lenders for debt extension due to repayment difficulties caused by the pandemic[175]. Legal Matters - The company faced litigation risks with 13 plaintiffs claiming a total of 186.94 thousand yuan in damages due to alleged false statements, with the case still pending in court[100]. - The company is involved in a lawsuit with IOFX, claiming 6 million RMB for damages related to a contract dispute, with a counterclaim for 1.9416 million RMB[132]. - The company has confirmed a contingent liability of approximately 6.93 million RMB related to the IOFX lawsuit[133]. - The company has also recognized a contingent liability of 1.8 million RMB for another ongoing lawsuit with Stabiz s.r.o[135]. Employee and Management Information - The total remuneration for directors, supervisors, and senior management in 2019 amounted to 666.85 million CNY[200]. - The company employed a total of 153 staff members, with 60 in business development/marketing[200]. - There are 22 employees with a master's degree or higher, and 95 with a bachelor's degree[200]. - The company has not granted any stock incentives to directors and senior management during the reporting period[200].

Business Focus and Strategy - The company reported a significant change in its main business focus, shifting to film production, artist management, and related entertainment services as of December 6, 2016[13]. - The company plans to strengthen its core business and enhance the artist agency business to improve revenue generation capabilities[33]. - The company aims to produce high-quality content that aligns with the socialist core values, contributing to its competitive advantage in the industry[33]. - The company will continue to focus on drama production and artist management as core businesses, enhancing competitive advantages and business layout[93]. - The company plans to produce high-quality dramas that align with mainstream socialist values, with upcoming projects including "Power and Profit" and "Tomb Raider Notes 3" expected to be completed in 2020[95]. - The company has a significant IP reserve and is strengthening copyright incubation efforts to create impactful original IPs for use in film and television production[96]. - The company is committed to optimizing its financial structure and improving cash flow by enhancing the collection of accounts receivable and diversifying financing channels[97]. - The company has established strong partnerships with major TV stations and online video platforms, enhancing its distribution capabilities[29]. Financial Performance - The company's operating revenue for 2019 was approximately ¥540 million, a decrease of 59.35% compared to ¥1.33 billion in 2018[16]. - The net profit attributable to shareholders was a loss of approximately ¥551 million in 2019, representing a decline of 269.79% from a profit of ¥324 million in 2018[16]. - The total assets at the end of 2019 were approximately ¥3.55 billion, down 27.93% from ¥4.91 billion at the end of 2018[16]. - The net assets attributable to shareholders decreased by 22.13% to approximately ¥2.65 billion at the end of 2019 from ¥3.45 billion at the end of 2018[16]. - The basic and diluted earnings per share for 2019 were both -¥0.56, a decline of 269.70% from ¥0.33 in 2018[16]. - The weighted average return on equity was -18.81% in 2019, down from 9.89% in 2018, indicating a significant deterioration in profitability[16]. - The company reported a total of ¥479 million from its top five revenue-generating projects, accounting for 88.71% of total revenue[53]. - The total revenue for 2019 was approximately ¥540 million, a decrease of 59.35% compared to ¥1.33 billion in 2018[40]. Operational Changes and Challenges - The company experienced a change in accounting policies and corrected accounting errors, necessitating a retrospective adjustment of previous financial data[15]. - The company has implemented new financial instrument standards starting January 1, 2019, which required retrospective adjustments to prior financial statements[16]. - The company has experienced a slowdown in project progress and investment due to the cautious approach towards film projects amid significant changes in the broadcasting environment and market demand[78]. - The company has not indicated any plans for market expansion or mergers and acquisitions in the reporting period[3]. - The company has not reported any new product or technology developments during the reporting period[75]. - The company has not disclosed any major changes in accounting policies or estimates that would affect financial reporting[141]. Governance and Compliance - The company’s board of directors and management have confirmed the accuracy and completeness of the annual report[3]. - The company has established a governance structure that allows its board and shareholders to exercise their rights independently[112]. - The company has committed to avoiding competition and ensuring independent operations as part of its corporate governance[110]. - The company has established an independent financial department and accounting system, ensuring compliance with legal tax obligations and independent financial decision-making[112]. - The audit report indicates that the receivables related to the TV series "Tianxia Chang'an" have a balance of 182 million yuan, with a provision for bad debts of 96 million yuan for 2019, significantly impacting the company's financial position[124]. - The company has faced administrative penalties from the China Securities Regulatory Commission due to the failure to provide accurate financial data for the years 2013 to 2016, which has led to a non-standard audit opinion[128]. - The company’s independent directors have called for improved corporate governance and risk management practices to enhance operational standards and protect investor rights[126]. Shareholder and Equity Information - The total number of shares is 980,980,473, with 45.14% being restricted shares[169]. - The controlling shareholders, including Huanshui United and Tianjin Huanshui, collectively held 289,815,273 shares, representing 29.54% of the total shares[175]. - 79.04% of the shares held by the controlling shareholders were pledged, amounting to 229,064,656 shares, which is 23.35% of the company's total shares[175]. - The company’s shareholder, Yao Qun, transferred 524,073 restricted shares to settle debts as per a court ruling[169]. - The company reported that 98.50% of the pledged shares by the controlling shareholders and their concerted actors were under pledge, totaling 285,474,656 shares[175]. - The largest shareholder, Huanshui United, held 10.87% of the shares, totaling 106,651,376 shares[173]. - The company did not conduct any repurchase transactions among the top 10 common shareholders during the reporting period[174]. Legal and Litigation Matters - The company is involved in a lawsuit with IOFX, claiming 6 million RMB for special effects production fees, with a counterclaim for 1.9416 million RMB and 3.6 million RMB in penalties[135]. - The company faces a total claim of 1.8694 million RMB from 13 plaintiffs due to alleged false statements leading to investment losses[139]. - The company has confirmed a contingent liability of approximately 6.93 million RMB related to the IOFX lawsuit[136]. - The company has also recognized a contingent liability of 1.8 million RMB for another ongoing lawsuit with Stabiz s.r.o[138]. Risk Management - The company has outlined potential risks in its future development outlook, which investors should be aware of[3]. - The company recognizes the risks associated with intellectual property rights and the potential for disputes arising from third-party claims[100]. - The company has a significant risk related to accounts receivable, with a large balance due to the timing of payments from clients after the release of films, increasing the risk of cash flow shortages[101]. - The company anticipates challenges in the drama industry due to strict regulatory oversight and increasing market competition, leading to a potential oversupply of content[99].

Financial Performance - The company's operating revenue for Q1 2020 was ¥11,729,739.38, a decrease of 79.64% compared to ¥57,619,969.17 in the same period last year[7] - Net profit attributable to shareholders increased by 31.27% to ¥14,304,563.63 from ¥10,896,837.74 year-on-year[7] - The net profit after deducting non-recurring gains and losses surged by 191.54% to ¥29,018,252.03 compared to ¥9,953,278.64 in the previous year[7] - Basic earnings per share rose by 31.53% to ¥0.0146 from ¥0.0111 in the same period last year[7] - Total operating revenue for Q1 2020 was CNY 11,729,739.38, a decrease of 79.7% compared to CNY 57,619,969.17 in the same period last year[34] - Net profit for Q1 2020 was CNY 14,303,935.42, an increase of 31.8% compared to CNY 10,894,446.30 in Q1 2019[36] - Operating profit for Q1 2020 was CNY 31,755,612.82, compared to CNY 22,987,909.96 in Q1 2019, indicating a growth of 38.4%[35] Cash Flow and Expenses - The net cash flow from operating activities improved, with a cash outflow reduction of 67.84%, amounting to -¥15,186,287.15 compared to -¥47,223,754.59 last year[7] - Cash inflow from operating activities was 126,916,337.40 CNY, down 59.8% from 315,008,992.77 CNY in the previous year[40] - Cash inflow from investment activities totaled 80,752,000.00 CNY, a decrease of 80% compared to 402,920,000.00 CNY in the previous year[41] - Net cash flow from investment activities was 80,633,819.72 CNY, down 78.3% from 370,894,881.05 CNY year-over-year[41] - The company's management expenses decreased by 28.34% to CNY 11,908,270.26, mainly due to the reduction in total expenses following the divestiture of a subsidiary[14] - The company experienced a decrease in sales expenses, which were CNY 7,488,691.29, down from CNY 14,827,067.94 in the same period last year[35] Assets and Liabilities - Total assets at the end of the reporting period were ¥3,555,508,220.85, reflecting a slight increase of 0.16% from ¥3,549,759,961.22 at the end of the previous year[7] - The net assets attributable to shareholders increased by 0.54% to ¥2,668,132,438.89 from ¥2,653,827,875.26 at the end of the last year[7] - Total liabilities increased to CNY 11,297,257.51 in Q1 2020 from CNY 9,073,624.60 in the previous year, reflecting a growth of 24.5%[35] - The company's total equity stood at CNY 4,507,067,712.28, slightly down from CNY 4,507,227,009.26 year-over-year[35] - The company's total equity attributable to shareholders rose to CNY 2,673,329,908.06 from CNY 2,659,025,344.43, an increase of approximately 0.5%[30] Shareholder Information - The company reported a total of 27,709 common shareholders at the end of the reporting period[11] - The top shareholder, Huanrui United, holds 10.87% of the shares, amounting to 106,651,376 shares, which are all pledged[11] - The company did not engage in any repurchase transactions during the reporting period[11] Legal and Compliance - The company is currently involved in litigation regarding alleged false statements, with a total claim amount of CNY 1.8694 million, which is not expected to have a significant impact on current profits[16] - The company did not undergo an audit for the first quarter report[45] - The company has not applied new revenue and leasing standards for the first quarter of 2020[45] Other Financial Metrics - The financial expenses decreased by 130.44% to CNY -2,560,626.34, primarily due to a reduction in bank borrowings compared to the previous year[14] - The company reported a significant increase in credit impairment losses, amounting to CNY 38,648,684.78, compared to CNY 8,113,137.52 in the previous year[35] - Other current assets decreased by 38.17% to CNY 22,939,736.37, mainly due to the receipt of previously refundable VAT during the reporting period[14] - The company’s expected liabilities increased by 45.68% to CNY 39,430,646.26, primarily due to provisions for contract breach penalties related to co-production agreements[14]

Financial Performance - Operating revenue for the reporting period was CNY 28,193,796.50, down 89.62% year-on-year[6] - Net profit attributable to shareholders was a loss of CNY 12,580,698.46, a decline of 110.26% compared to the same period last year[6] - Basic and diluted earnings per share were both CNY -0.0128, a decrease of 110.25% year-on-year[6] - Total operating revenue for Q3 2019 was CNY 28,193,796.50, a decrease of 89.6% compared to CNY 271,700,773.85 in the same period last year[37] - Net profit for Q3 2019 was a loss of CNY 12,583,044.59, compared to a profit of CNY 122,173,825.16 in Q3 2018[37] - The company's operating profit for Q3 2019 was a loss of CNY 8,691,052.38, a significant decline from a profit of CNY 135,458,080.12 in the previous year[37] - Total operating revenue for the first nine months of 2019 was CNY 137,397,326.78, a decrease of 74.0% compared to CNY 527,317,483.66 in the same period last year[43] - Net profit for the third quarter was CNY 5,655,238.34, a significant decline of 96.7% compared to CNY 171,352,538.99 in the previous year[44] Cash Flow - The net cash flow from operating activities showed a reduction in cash outflow by 86.17%, amounting to CNY -87,762,315.50[6] - Net cash flow from operating activities improved to -¥87.76 million from -¥634.72 million, driven by increased sales collections[15] - The cash inflow from operating activities totaled CNY 1,103,382,081.89, an increase of 11.0% compared to CNY 994,031,551.86 in the previous period[50] - The net cash outflow from operating activities was CNY -87,762,315.50, improving from CNY -634,716,319.29 in the previous period[50] - Cash inflow from investment activities was CNY 402,920,000.00, down 54.4% from CNY 882,492,164.38 in the previous period[50] - The company reported a net decrease in cash and cash equivalents of CNY -420,554,206.98, compared to CNY -224,519,887.56 in the previous period[50] Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,287,831,674.98, a decrease of 12.71% compared to the end of the previous year[6] - Current assets totaled approximately ¥4.12 billion, down from ¥4.73 billion, indicating a decrease of around 13%[31] - Total liabilities decreased from ¥1.47 billion to ¥836.13 million, reflecting a decline of approximately 43.3%[32] - The company's equity attributable to shareholders increased slightly from ¥3.45 billion to ¥3.45 billion, showing a marginal increase of about 0.02%[33] - Total liabilities for Q3 2019 were CNY 62,115,677.75, down from CNY 206,575,542.54 in the same period last year[37] - The company reported total liabilities of CNY 1,466,180,898.43, with current liabilities totaling CNY 1,353,730,898.43[55] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,804[10] - The largest shareholder, Huanrui United (Tianjin) Asset Management Partnership, held 10.87% of the shares[10] - The company did not engage in any repurchase transactions during the reporting period[10] Government Support - The company received government subsidies amounting to CNY 3,384,169.29, primarily due to local support policies[7] Inventory and Receivables - Accounts receivable decreased by 29.34% to ¥1.64 billion, primarily due to a reduction in TV drama sales revenue and increased collection efforts[15] - The company has recovered ¥165.12 million of accounts receivable related to the TV drama "Tianxia Chang'an," with ¥442.34 million still outstanding[18] - Inventory increased from ¥1.27 billion to ¥1.48 billion, marking an increase of approximately 16.5%[31] Financial Adjustments - The company adjusted its financial assets under the new financial standards, reclassifying CNY 401,800,000.00 from financial assets at fair value to other current assets[56] Financial Expenses - The company reported a significant increase in financial expenses, totaling CNY 7,068,403.89 in Q3 2019, compared to a negative expense of CNY -3,421,154.95 in the previous year[37] - The company incurred a financial expense of CNY 15,862,787.69, compared to a financial income of CNY 555,747.33 in the previous year[43] Credit Impairment - The company recorded a credit impairment loss of CNY 5,578,893.97 in Q3 2019, with no such loss reported in the same period last year[37] - The company reported a credit impairment loss of CNY 17,670,272.57 for the third quarter[43] Audit Status - The third quarter report was not audited, which may affect the reliability of the financial data presented[61]

| --- | --- | --- | --- | |------------|--------|----------------------------------------------------------------------|---------| | | | | | | 证券代码： | 000892 | 证券简称：欢瑞世纪 公告编号： | 2019-58 | | | | 欢瑞世纪联合股份有限公司 | | | | | 关于参加重庆辖区上市公司 2019 年投资者网上 集体接待日活动的公告 | | | | | 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记 | | 载、误导性陈述或重大遗漏。 为提高上市公司规范运作水平，推动重庆辖区上市公司进一步做好投资者关系管 理工作，重庆上市公司协会联合深圳市全景网络有限公司举办"重庆辖区上市公司 2019 年投资者网上集体接待日活动"。活动将于 2019 年 11 月 6 日（下周星期三）下 午 15:00-17:00 举行，投资者可以登录全景网（http://www.p5w.net）进入本公司 互动平台参与互动交流。 公司出席本次网上投 ...