Financial Performance - The company's operating revenue for the first half of 2019 was approximately ¥988.84 million, representing a 2.07% increase compared to the same period last year[18]. - The net profit attributable to shareholders of the listed company was approximately ¥103.06 million, an increase of 6.26% year-on-year[18]. - The basic earnings per share for the period was ¥0.08, reflecting a 14.29% increase compared to the previous year[18]. - The total revenue for the reporting period was RMB 988.84 million, representing a 2.07% increase from RMB 968.76 million in the previous year[42]. - The manufacturing sector accounted for 95.92% of total revenue, with revenue of RMB 948.47 million, reflecting a 2.07% increase year-on-year[44]. - The company's revenue for the manufacturing sector reached ¥948,471,406.40, representing a year-on-year increase of 2.07%[45]. - The company reported a total of ¥2,302.26 million in raised funds during the reporting period, with a cumulative investment of ¥68,323.81 million[55]. - The company’s research and development expenditure was RMB 46.96 million, a decrease of 3.96% from RMB 48.89 million in the previous year[42]. - The company’s overseas revenue decreased by 25.95% to RMB 74.72 million, down from RMB 100.91 million in the previous year[44]. - The cultural service sector generated revenue of RMB 29.11 million, a decline of 2.31% from RMB 29.79 million in the previous year[44]. Cash Flow and Financial Position - The net cash flow from operating activities was negative at approximately -¥156.08 million, a decline of 106.64% compared to the previous year[18]. - The company's cash and cash equivalents at the end of the reporting period amounted to ¥547,819,368.50, down 3.17% from ¥693,442,630.79 at the same time last year[47]. - Accounts receivable increased significantly to ¥287,133,281.65, up 4.68% from ¥85,695,551.34 year-on-year[47]. - Inventory levels rose to ¥960,695,086.39, which is an increase of 2.22% compared to ¥875,245,160.36 from the previous year[47]. - The company’s short-term borrowings increased to ¥395,353,000.00, up 3.21% from ¥259,625,700.00 year-on-year[47]. - The total amount of guarantees provided by the company accounted for 2.14% of the company's net assets[87]. - The company has no violations regarding external guarantees during the reporting period[89]. - The total assets at the end of the reporting period were approximately ¥4.32 billion, a decrease of 1.19% from the end of the previous year[18]. - The net assets attributable to shareholders of the listed company were approximately ¥3.31 billion, an increase of 0.44% compared to the previous year[18]. Market and Competition - The company faces risks from macroeconomic fluctuations that may impact consumer spending on pianos and digital instruments[4]. - Increased competition in the domestic piano and digital instrument market poses a risk to the company's market position[5]. - The company aims to optimize its sales structure and expand its marketing network to cover untapped markets[32]. - The company has established 58 national distributors and 28 sub-distributors for the Schimmel brand in China[32]. - The company participated in over 189 cultural events to enhance its international brand influence[35]. Product Development and Innovation - The company developed 16 new piano models in the first half of 2019, with some entering the trial production phase[34]. - The company has authorized 8 patents this year, including 1 invention patent and 5 utility model patents[34]. - The company completed 214 trials for new materials and processes in piano manufacturing, with 22 projects implemented[33]. Social Responsibility and Community Engagement - The company aims to achieve poverty alleviation goals by 2020, ensuring that rural poor populations have access to basic needs and services[95]. - The company has invested a total of 171 million yuan in poverty alleviation efforts, with 468 individuals from registered impoverished households lifted out of poverty[101]. - A total of 9 poverty alleviation projects have been initiated, with an investment of 85.2 million yuan specifically for industry development[102]. - The company has organized 2 training sessions annually for impoverished households to enhance their skills[99]. - The company has allocated 74.5 million yuan to improve educational resources in impoverished areas[102]. Governance and Compliance - The company has not reported any significant legal disputes or penalties during the period, reflecting a stable operational environment[74]. - The company has not engaged in any major related party transactions during the reporting period, ensuring transparency in its operations[78]. - The company has not initiated any stock incentive plans or employee shareholding plans during the reporting period, indicating a focus on other strategic initiatives[77]. - The financial report for the first half of 2019 has not been audited[126]. - The company prepares financial statements based on the assumption of going concern, with no significant doubts about its ability to continue operations for the next 12 months[174]. Shareholder Information - The total number of shares is 1,358,320,323, with 99.91% being unrestricted shares[111]. - The largest shareholder, Guangzhou Municipal Government, holds 74.89% of the shares, totaling 1,017,244,800 ordinary shares[115]. - The total number of ordinary shareholders at the end of the reporting period is 16,604[114]. Environmental Compliance - The company strictly adheres to environmental protection laws and regulations, ensuring compliance in all new project constructions[91]. - The company has installed online monitoring facilities for wastewater treatment, ensuring compliance with local environmental standards[92]. - The company has developed an emergency response plan for environmental incidents, which has been reviewed and filed with the local environmental authority[94].

Financial Performance - The company's operating revenue for Q1 2019 was CNY 518,020,680.46, representing an increase of 8.08% compared to CNY 479,314,264.56 in the same period last year[8] - The net profit attributable to shareholders of the listed company was CNY 55,659,840.43, up by 9.18% from CNY 50,977,621.73 year-on-year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 4.40% to CNY 48,224,182.10 from CNY 50,441,336.36 in the previous year[8] - The basic earnings per share remained at CNY 0.04, unchanged from the previous year[8] - The weighted average return on net assets was 1.68%, down from 2.52% in the same period last year[8] - Total operating revenue for the current period reached ¥518,020,680.46, an increase of 8.1% compared to ¥479,314,264.56 in the previous period[46] - Net profit for the current period was ¥55,009,417.66, representing a 9.4% increase from ¥50,419,029.95 in the same period last year[48] - Operating profit increased to ¥67,044,025.67, a rise of 8.5% compared to ¥61,602,924.38 in the previous year[48] Cash Flow - The net cash flow from operating activities was negative at CNY -116,163,840.13, worsening by 40.81% compared to CNY -82,496,319.03 in the same period last year[8] - Cash inflow from operating activities totaled CNY 484,021,330.62, up from CNY 437,329,072.49 in the previous period, reflecting a growth of approximately 10.5%[58] - Cash outflow from operating activities was CNY 600,185,170.75, compared to CNY 519,825,391.52 in the previous period, representing an increase of about 15.4%[58] - Net cash flow from operating activities grew by 40.81% in Q1 2019, mainly due to increased cash payments for goods and services[21] - Cash inflow from investing activities was CNY 472,819,204.70, down from CNY 524,549,403.55 in the previous period, a decrease of approximately 9.9%[60] - Net cash flow from investing activities was CNY 98,705,840.99, an increase from CNY 70,083,361.00 in the previous period, showing a growth of about 40.9%[60] - Net cash flow from financing activities decreased by 94.39% in Q1 2019, primarily due to a reduction in bank loan repayments[21] - The company reported a decrease in cash flow from operating activities, highlighting the need for strategic adjustments to improve liquidity[63] Assets and Liabilities - The total assets at the end of the reporting period were CNY 4,308,157,650.45, an increase of 7.48% from CNY 4,008,289,949.65 at the end of the previous year[8] - The total liabilities decreased from CNY 1,050,484,574.36 in 2018 to CNY 932,736,915.22 in 2019, representing a reduction of approximately 11.2%[36] - The total owner's equity increased from CNY 3,325,966,794.03 in 2018 to CNY 3,375,420,735.23 in 2019, reflecting a growth of about 1.5%[38] - The total current liabilities decreased from CNY 977,017,407.69 in 2018 to CNY 860,568,174.61 in 2019, a decline of about 12%[36] - The total cash and cash equivalents at the end of the period amounted to 180,959,548.94 CNY, down from 197,328,669.01 CNY year-over-year, reflecting a decrease of about 8.7%[65] - The total current assets increased slightly to 2,562,077,272.52 CNY from 2,558,914,473.44 CNY, marking a growth of about 0.1%[68] Shareholder Information - The top ten shareholders held a combined 84.77% of the company's shares, with the largest shareholder, Guangzhou Municipal Government, holding 74.89%[11] - The company’s retained earnings increased to 813,523,941.12 CNY, reflecting a growth of approximately 0.3% from the previous year[70] Other Financial Metrics - The company reported non-operating income of CNY 7,435,658.33, primarily from government subsidies and investment management income[8] - Research and development expenses were ¥26,697,024.84, up 11.3% from ¥23,999,276.21 in the prior period[46] - Tax expenses increased to ¥8,637,968.64, a rise of 53.7% from ¥5,620,675.01 in the previous period[46] - The company reported a decrease in other comprehensive income by CNY 2,185,622.49 compared to the previous period[77] - The company has adjusted its financial reporting to comply with new financial accounting standards effective from January 1, 2019[78]

2018 年 10 月 1 广州珠江钢琴集团股份有限公司 2018 年第三季度报告正文 证券代码：002678 证券简称：珠江钢琴 公告编号：2018-054 广州珠江钢琴集团股份有限公司 2018 年第三季度报告正文 广州珠江钢琴集团股份有限公司 2018 年第三季度报告正文 第一节 重要提示 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、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人李建宁、主管会计工作负责人麦燕玉及会计机构负责人(会计主 管人员)梁永恒声明：保证季度报告中财务报表的真实、准确、完整。 2 广州珠江钢琴集团股份有限公司 2018 年第三季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增 | | --- | --- | --- | --- | --- | | | | | | 减 | | 总资产（元） | 4,086,415,987.42 | ...

[Important Notes, Table of Contents, and Definitions](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%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the report's accuracy, highlights forward-looking statement risks, and confirms no interim dividend distribution - The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[4](index=4&type=chunk) - Forward-looking statements regarding development strategies do not constitute substantive commitments to investors, who are advised to be aware of investment risks[5](index=5&type=chunk) - The company faces risks including macroeconomic impacts, intensified market competition, and film and television industry policies[5](index=5&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) - The company does not plan to distribute cash dividends, issue bonus shares, or capitalize reserves for the first half of the year[9](index=9&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms and entities used in the report to ensure clear understanding - The reporting period refers to January 1, 2018, to June 30, 2018[13](index=13&type=chunk) - Key subsidiaries and related parties, including Amason, the micro-credit company, Zhuguang Media, and Schimmel, are defined[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Company Profile](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section provides basic corporate information, including stock details, legal representative, and contact information Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Pearl River Piano | | Stock Code | 002678 | | Stock Exchange | Shenzhen Stock Exchange | | Legal Representative | Li Jianning | - The company's registered and office address is Building 1 and Plant 3, No 38 Xiangshan Avenue, Yongning Street, Zengcheng District, Guangzhou[18](index=18&type=chunk) - There were no changes to the company's contact information or information disclosure locations during the reporting period[18](index=18&type=chunk)[20](index=20&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's operating revenue grew by 14.56% year-over-year, while net profit attributable to shareholders increased by 6.02% Key Accounting Data and Financial Indicators for H1 2018 | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 968,758,594.75 | 845,659,555.51 | 14.56% | | Net Profit Attributable to Shareholders | 96,987,690.05 | 91,481,689.94 | 6.02% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 90,623,873.94 | 86,290,300.58 | 5.02% | | Net Cash Flow from Operating Activities | -75,531,809.50 | -72,817,628.52 | 3.73% | | Basic Earnings Per Share | 0.09 | 0.10 | -10.00% | | Diluted Earnings Per Share | 0.09 | 0.10 | -10.00% | | Weighted Average Return on Equity | 2.99% | 4.46% | -1.47% | | Total Assets (End of Period) | 4,125,220,819.61 | 4,169,525,836.25 | -1.06% | | Net Assets Attributable to Shareholders (End of Period) | 3,201,163,254.06 | 3,193,511,835.88 | 0.24% | - The company did not need to retrospectively adjust or restate prior year accounting data[21](index=21&type=chunk) - There were no discrepancies between net profit and net assets disclosed under IFRS and Chinese Accounting Standards[22](index=22&type=chunk)[23](index=23&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Non-recurring profit and loss items totaled CNY 6.36 million, primarily from government subsidies and investment income Non-recurring Profit and Loss Items and Amounts for H1 2018 | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -991,618.35 | | Government Subsidies Included in Current Profit/Loss | 4,411,087.00 | | Gains/Losses from Entrusted Investments or Asset Management | 6,152,310.93 | | Other Non-operating Income and Expenses | -1,634,745.93 | | Less: Income Tax Impact | 1,190,555.05 | | Minority Interest Impact (After Tax) | 382,662.49 | | Total | 6,363,816.11 | - The company did not reclassify any non-recurring profit and loss items as recurring during the reporting period[25](index=25&type=chunk) [Company Business Summary](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%A6%81) [Principal Business Activities During the Reporting Period](index=9&type=section&id=%E6%8A%A5%E5%91%8A%E6%C2%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's principal business activities remained unchanged during the reporting period, with details available in the 2017 annual report - There were no significant changes to the company's principal business activities during the reporting period[28](index=28&type=chunk) [Significant Changes in Major Assets](index=9&type=section&id=%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) The company's major assets underwent significant changes, primarily due to the ongoing construction of the Zengcheng industrial base Phase II project - The primary significant change in major assets was the construction in progress for the Zengcheng industrial base Phase II project[29](index=29&type=chunk) - The company had no major overseas assets during the reporting period[30](index=30&type=chunk) [Core Competitiveness Analysis](index=9&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness remained stable during the reporting period, with details available in the 2017 annual report - There were no significant changes to the company's core competitiveness during the reporting period[30](index=30&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Overview](index=10&type=section&id=%E6%A6%82%E8%BF%B0) In H1 2018, the company achieved rapid growth in key economic indicators and maintained its leading industry position despite a complex economic environment - In H1 2018, the global economy recovered amid escalating trade friction, while the domestic economy remained stable and piano market competition intensified[33](index=33&type=chunk) - The company continued to deepen reforms, advance supply-side structural reform, and promote innovation-driven development and international operations[33](index=33&type=chunk) - The company ranked first among China's Top 50 Musical Instrument Manufacturers and received honors such as "2017-2018 National Key Cultural Export Enterprise"[33](index=33&type=chunk) - The Pearl River Piano brand achieved a strength score of 915 and a **brand value of CNY 4.772 billion**, ranking 20th in the light industry sector[33](index=33&type=chunk) [Operating Performance](index=10&type=section&id=%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E6%96%B9%E9%9D%A2) The company achieved rapid growth in operating performance, with a 14.56% increase in revenue and a 6.02% increase in net profit Operating Performance for H1 2018 | Indicator | Amount (CNY Million) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 968.76 | 14.56% | | Operating Profit | 116.37 | 15.13% | | Total Profit | 114.73 | 7.75% | | Net Profit Attributable to Shareholders | 96.99 | 6.02% | [Piano Business](index=10&type=section&id=%E9%92%A2%E7%90%B4%E4%B8%9A%E5%8A%A1%E6%96%B9%E9%9D%A2) The piano business achieved sales growth and enhanced brand influence through innovations in operations, technology, and marketing activities - **Operational innovation** was promoted by expanding the marketing network, with 250 new exclusive stores; total piano sales reached **74,600 units**, a YoY increase of **7.77%**, including 4,959 export units[34](index=34&type=chunk) - The Schimmel project deepened, with H1 sales of **952 units** and revenue of **CNY 64.8 million**[35](index=35&type=chunk) - Internet integration drove online piano sales to **1,221 units**, with revenue up **10.65%** and total profit up **96.55%** YoY[35](index=35&type=chunk) - **Technological innovation** was advanced through 183 experiments on new materials and processes, holding **142 patents** (including 36 invention patents)[35](index=35&type=chunk) - High-end product R&D led to the Kayserburg KN series winning a technology award, with **16 new piano models** designed[36](index=36&type=chunk) - Brand activities supported over **150 international cultural events**, enhancing global brand influence[37](index=37&type=chunk) - The relocation to the Zengcheng plant is progressing smoothly, with the headquarters expected to complete the move by September 2018[38](index=38&type=chunk) [Digital Musical Instrument Business](index=11&type=section&id=%E6%95%B0%E7%A0%81%E4%B9%90%E5%99%A8%E4%B8%9A%E5%8A%A1%E6%96%B9%E9%9D%A2) Subsidiary Amason was listed on the NEEQ in April 2018, achieving revenue growth and advancing R&D in digital piano systems - Holding subsidiary Amason was successfully listed on the **NEEQ** in April 2018[39](index=39&type=chunk) - In H1 2018, Amason achieved operating revenue of **CNY 37.66 million**, a YoY increase of **6.36%**[39](index=39&type=chunk) - R&D was initiated for a piano silent system and Pearl River branded digital pianos, with the self-developed digital piano keyboard entering the sample testing phase[39](index=39&type=chunk) - Amason's concert-grade nine-foot grand digital piano was selected for use in venues like the Great Hall of the People and the CCTV Spring Festival Gala[39](index=39&type=chunk) [Music and Culture Business](index=11&type=section&id=%E9%9F%B3%E4%B9%90%E6%96%87%E5%8C%96%E4%B8%9A%E5%8A%A1%E6%96%B9%E9%9D%A2) The company expanded its art education footprint with new direct-managed centers and grew its media business through strategic investments - The cultural education investment company established direct-managed education centers in Beijing, Guangzhou, and Foshan, building a standardized framework for the brand[39](index=39&type=chunk) - Pearl River-Eno's smart instruments and digital art courses were upgraded, with over **200 Pearl River Piano Art Classrooms** developed in H1, covering 626 partners[39](index=39&type=chunk) - Zhuguang Media invested in the TV series "Awakening" and completed initial IP incubation for two other projects[40](index=40&type=chunk) - The Guangzhou Cultural Industry Innovation and Entrepreneurship Incubation Park project is progressing on schedule with active market research and promotion[40](index=40&type=chunk) [Piano After-Sales Service Market](index=11&type=section&id=%E9%92%A2%E7%90%B4%E5%90%8E%E6%9C%8D%E5%8A%A1%E5%B8%82%E5%9C%BA%E6%96%B9%E9%9D%A2) Qinqu Technology's "91qinqu" and "91diaolv" platforms drove growth in the after-sales market, becoming a new growth driver for the group - Qinqu Technology's "91qinqu" and "91diaolv" platforms, launched in 2016, provide O2O services[40](index=40&type=chunk) - The "Piano Cloud Classroom" mobile product was launched in 2017, with marketing efforts intensified in H1 2018[40](index=40&type=chunk) - The tuning business was upgraded to "Piano Cloud After-sales" to accelerate the creation of a closed-loop industry chain[40](index=40&type=chunk) - In H1 2018, Qinqu Technology sold 2,102 cloud classroom cameras, completed 23,800 piano tunings, and generated **main business revenue of CNY 5.94 million**[41](index=41&type=chunk) [Quasi-Financial Business](index=12&type=section&id=%E7%B1%BB%E9%87%91%E8%9E%8D%E4%B8%9A%E5%8A%A1%E6%96%B9%E9%9D%A2) The company engages in quasi-financial business through equity investments in micro-credit, education, media, and state-owned industry funds - The company's quasi-financial business is conducted mainly through equity participation in a micro-credit company and various funds[41](index=41&type=chunk) - The micro-credit company adheres to prudent operations, continuously improving internal management and risk monitoring while pursuing strategic business transformation[41](index=41&type=chunk) [Internal Management](index=12&type=section&id=%E5%86%85%E9%83%A8%E7%AE%A1%E7%90%86%E6%96%B9%E9%9D%A2) The company enhanced internal management by promoting quality control activities and strengthening its talent pipeline through university partnerships - Mass quality management activities were promoted, with QC teams winning first prize at provincial and municipal level conferences[41](index=41&type=chunk) - High-level talent was introduced and cultivated through university-enterprise cooperation, with 26 employees admitted to an undergraduate program[42](index=42&type=chunk) - Teaching and internship bases were established with several universities to train specialized piano manufacturing and tuning talent[42](index=42&type=chunk) [Main Business Analysis](index=12&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Revenue grew 14.56% YoY, driven by a 724.28% surge in the cultural services segment, while management and financial expenses decreased significantly Key Financial Data YoY Changes | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 968,758,594.75 | 845,659,555.51 | 14.56% | | | Operating Costs | 662,753,708.15 | 567,143,384.15 | 16.86% | | | Selling Expenses | 59,537,480.56 | 50,784,767.31 | 17.23% | | | Administrative Expenses | 116,254,079.56 | 204,062,789.68 | -43.03% | Provision for relocation compensation in the previous year | | Financial Expenses | 2,083,062.93 | 6,246,684.35 | -66.65% | Increased interest income and decreased interest expense | | Net Cash Flow from Investing Activities | 80,677,963.97 | 41,324,194.23 | 95.23% | Purchase of wealth management products and payment for construction | Operating Revenue Composition | Category | Current Period Amount (CNY) | % of Revenue | Prior Year Amount (CNY) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Manufacturing | 929,211,905.98 | 95.92% | 803,586,248.25 | 95.02% | 15.63% | | Cultural Services | 29,794,420.03 | 3.08% | 3,614,609.48 | 0.43% | 724.28% | | Other Business | 9,752,268.74 | 1.00% | 38,458,697.78 | 4.55% | -74.64% | | Domestic Sales | 867,846,853.07 | 89.58% | 738,510,275.97 | 87.33% | 17.51% | | Export Sales | 100,911,741.68 | 10.42% | 107,149,279.54 | 12.67% | -5.82% | - The growth in cultural services revenue and costs was mainly due to a low base in the previous year and business expansion[48](index=48&type=chunk) - The decline in other business revenue and costs was due to the company focusing resources on its core industries[48](index=48&type=chunk) [Non-Main Business Analysis](index=14&type=section&id=%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) No non-main business analysis was applicable for the reporting period - No non-main business analysis was applicable for the reporting period[49](index=49&type=chunk) [Analysis of Assets and Liabilities](index=14&type=section&id=%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets decreased slightly, with a notable increase in cash and construction in progress and a decrease in short-term borrowings Significant Changes in Asset Composition | Item | End of Current Period (CNY) | % of Total Assets | End of Prior Period (CNY) | % of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 655,990,052.13 | 15.90% | 408,612,821.96 | 13.76% | 2.14% | | Accounts Receivable | 278,184,374.91 | 6.74% | 274,932,188.27 | 9.26% | -2.52% | | Inventory | 809,391,723.26 | 19.62% | 805,324,613.43 | 27.12% | -7.50% | | Construction in Progress | 278,314,717.59 | 6.75% | 86,392,675.38 | 2.91% | 3.84% | | Short-term Borrowings | 161,405,571.75 | 3.91% | 280,000,000.00 | 9.43% | -5.52% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Fair Value Change (CNY) | Amount Sold (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Available-for-sale Financial Assets | 3,392,224.92 | -256,738.44 | | 3,135,486.48 | | Total | 3,392,224.92 | -256,738.44 | | 3,135,486.48 | - There were no significant changes in the measurement attributes of major assets during the reporting period[53](index=53&type=chunk) - As of the end of the reporting period, there were no restrictions on the company's asset rights[53](index=53&type=chunk) [Investment Status Analysis](index=15&type=section&id=%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's investments include equity instruments measured at fair value, and it has utilized CNY 602.36 million of its total raised funds Financial Assets Measured at Fair Value | Asset Class | Initial Investment Cost (CNY) | Fair Value Change (CNY) | Ending Amount (CNY) | Funding Source | | :--- | :--- | :--- | :--- | :--- | | Equity | 591,478.50 | -256,738.44 | 3,135,486.48 | Own Funds | - The company had no securities investments or derivatives investments during the reporting period[56](index=56&type=chunk)[58](index=58&type=chunk) Overall Use of Raised Funds | Indicator | Amount (CNY Million) | | :--- | :--- | | Total Raised Funds | 1,061.20 | | Raised Funds Invested in Reporting Period | 197.48 | | Cumulative Raised Funds Invested | 602.36 | | Raised Funds with Changed Use in Reporting Period | 11.00 | | Cumulative Proportion of Raised Funds with Changed Use | 1.03% | Status of Committed Investment Projects | Project Name | Committed Investment (CNY Million) | Cumulative Investment (CNY Million) | Investment Progress | | :--- | :--- | :--- | :--- | | Guangzhou Cultural Industry Innovation Park Project | 269.00 | 1.71 | 0.66% | | Zengcheng National Cultural Industry Base Project (Phase II) | 629.00 | 529.41 | 82.91% | | National Culture and Arts Education Center Project | 102.00 | 10.04 | 9.84% | | Supplementary Working Capital | 61.20 | 61.20 | 100.00% | - The company reallocated **CNY 11 million** of raised funds from the "Pearl River Musical Instrument Cloud Service Platform Project" to the "Guangzhou Cultural Industry Innovation and Entrepreneurship Incubation Park Project"[66](index=66&type=chunk) [Sale of Major Assets and Equity](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) No major assets or equity were sold during the reporting period - The company did not sell any major assets during the reporting period[69](index=69&type=chunk) - The company did not sell any major equity stakes during the reporting period[70](index=70&type=chunk) [Analysis of Major Holding and Investee Companies](index=19&type=section&id=%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Guangzhou Pearl River Kayserburg Piano Co, Ltd had a significant impact on net profit, contributing CNY 105.40 million Major Subsidiaries and Investee Companies with >10% Impact on Net Profit | Company Name | Type | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guangzhou Pearl River Kayserburg Piano Co, Ltd | Subsidiary | R&D, manufacturing, and sales of pianos | 131,253,000 | 2,306,167,017.60 | 1,594,815,163.22 | 835,237,658.46 | 124,194,409.80 | 105,398,074.36 | - The company did not acquire or dispose of any subsidiaries during the reporting period[71](index=71&type=chunk) [Structured Entities Controlled by the Company](index=19&type=section&id=%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[71](index=71&type=chunk) [Forecast for Q1-Q3 2018 Operating Performance](index=20&type=section&id=%E5%AF%B9%202018%20%E5%B9%B4%201-9%20%E6%9C%88%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E7%9A%84%E9%A2%84%E8%AE%A1) The company projects a 0% to 30% year-over-year increase in net profit for the first nine months of 2018 Q1-Q3 2018 Performance Forecast | Indicator | Change Range (CNY Million) | Change Rate | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders | 128.15 to 166.59 | 0.00% to 30.00% | - Reasons for the performance change include continuous reform and innovation, high-end brand development, expansion in smart pianos and art education, and industrial structure upgrades[72](index=72&type=chunk) [Risks and Countermeasures](index=20&type=section&id=%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces challenges in talent development and management mechanisms during its industrial transformation and business expansion phase - The company faces risks related to talent pipeline development and the establishment of effective assessment mechanisms for various business segments during its industrial transformation[73](index=73&type=chunk) - Countermeasures include improving the internal control system, optimizing corporate governance, and enhancing refined management and risk prevention capabilities[73](index=73&type=chunk) [Significant Events](index=21&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Annual and Extraordinary General Meetings Held During the Reporting Period](index=21&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%AC%E5%BC%80%E7%9A%84%E5%B9%B4%E5%BA%A6%E8%82%A1%E4%B8%9C%E5%A4%A7%E4%BC%9A%E5%92%8C%E4%B8%B4%E6%97%B6%E8%82%A1%E4%B8%9C%E5%A4%A7%E4%BC%9A%E7%9A%84%E6%9C%89%E5%85%B3%E6%83%85%E5%86%B5) The company held one extraordinary general meeting and its 2017 annual general meeting during the reporting period - The first extraordinary general meeting of 2018 was held on April 2, 2018[76](index=76&type=chunk) - The 2017 annual general meeting was held on May 14, 2018[76](index=76&type=chunk) [Profit Distribution or Capitalization of Capital Reserve Plan for the Reporting Period](index=21&type=section&id=%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E9%A2%84%E6%A1%88) The company does not plan to distribute cash dividends, issue bonus shares, or capitalize reserves for the first half of the year - The company does not plan to distribute cash dividends, issue bonus shares, or capitalize reserves for the first half of the year[77](index=77&type=chunk) [Commitments Fulfilled or Overdue by Relevant Parties](index=21&type=section&id=%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%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%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) Commitments regarding non-competition and lock-up periods for non-publicly offered shares were fulfilled during the reporting period - Guangzhou SASAC committed to avoiding competition with the issuer and prioritizing the introduction of relevant business opportunities[79](index=79&type=chunk)[80](index=80&type=chunk) - Two investment partnerships that subscribed to the non-public offering fulfilled their commitments, with the lock-up period for their shares ending on August 21, 2018[80](index=80&type=chunk) - The company's commitment not to engage in venture capital or provide financial assistance to external parties for twelve months after supplementing working capital has been fulfilled[81](index=81&type=chunk) [Appointment and Dismissal of Accounting Firm](index=24&type=section&id=%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[82](index=82&type=chunk) [Explanation on "Non-standard Audit Report" for the Reporting Period](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) This item is not applicable as there was no non-standard audit report for the period - There was no non-standard audit report for the reporting period[83](index=83&type=chunk) [Explanation on "Non-standard Audit Report" from the Previous Year](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) This item is not applicable as there was no non-standard audit report for the previous year - There was no explanation regarding a non-standard audit report from the previous year[83](index=83&type=chunk) [Bankruptcy and Reorganization Matters](index=25&type=section&id=%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) No bankruptcy or reorganization matters occurred during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[83](index=83&type=chunk) [Litigation Matters](index=25&type=section&id=%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no major litigation but was involved in several other lawsuits concerning contract and liability disputes - The company had no major litigation or arbitration matters during the reporting period[84](index=84&type=chunk) Other Litigation Matters | Case Description | Amount Involved (CNY Million) | Progress | Outcome and Impact | | :--- | :--- | :--- | :--- | | Construction contract dispute with Yang Weibing | 3.14 | Second appeal not yet heard | None yet | | Contract dispute between Zhuguang Media and Juhe Media, Tan Lulu | 5.87 | Enforcement case filed | Respondents ordered to repay CNY 5 million principal, CNY 0.65 million interest, plus damages and fees | | Contract dispute between Zhuguang Media and Haining Beichen Film, Li Tie | 4.00 | First instance case filed | None yet | | Contract dispute between Amason and Qingdao Angel Education Technology | 0.41 | First instance case filed | None yet | [Media Questioning](index=26&type=section&id=%E5%AA%92%E4%BD%93%E8%B4%A8%E7%96%91%E6%83%85%E5%86%B5) There were no widespread media inquiries or questioning during the reporting period - There were no widespread media inquiries during the reporting period[86](index=86&type=chunk) [Penalties and Rectifications](index=27&type=section&id=%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) No penalties or rectifications occurred during the reporting period - No penalties or rectifications occurred during the reporting period[87](index=87&type=chunk) [Integrity Status of the Company and Its Controlling Shareholders](index=27&type=section&id=%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) There were no integrity issues to disclose regarding the company or its controlling shareholders - There were no integrity issues to disclose regarding the company or its controlling shareholders during the reporting period[88](index=88&type=chunk) [Implementation of Equity Incentive Plans or Other Employee Incentives](index=27&type=section&id=%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place - The company had no equity incentive plans or other employee incentive measures during the reporting period[88](index=88&type=chunk) [Major Related-Party Transactions](index=27&type=section&id=%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) No major related-party transactions related to daily operations, asset acquisitions, or joint investments occurred during the reporting period - No related-party transactions related to daily operations occurred during the reporting period[89](index=89&type=chunk) - No related-party transactions involving the acquisition or sale of assets or equity occurred[90](index=90&type=chunk) - No joint investments with related parties occurred during the reporting period[91](index=91&type=chunk) - There were no related-party credit or debt transactions[92](index=92&type=chunk) - There were no other major related-party transactions during the reporting period[93](index=93&type=chunk) [Major Contracts and Their Performance](index=28&type=section&id=%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company provided several external guarantees, totaling 2.17% of its net assets, primarily for its subsidiaries - The company had no custody, contracting, or leasing arrangements during the reporting period[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) Company's External Guarantees | Guaranteed Party | Guarantee Limit (CNY Million) | Actual Guarantee Amount (CNY Million) | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Guangzhou Pearl River Micro-credit Co, Ltd | 21.00 | 4.50 | 2016.12.01-2018.08.20 | No | | Pearl River Piano Group Europe GmbH | 24.50 | 24.50 | 2017.09.17-2018.09.17 | No | | Pearl River Piano Group Europe GmbH | 80.00 | 40.32 | 2018.04.18-2019.04.02 | No | - The total actual guarantee amount represents **2.17%** of the company's net assets[99](index=99&type=chunk) - There were no irregular external guarantees during the reporting period[100](index=100&type=chunk) - There were no other major contracts during the reporting period[101](index=101&type=chunk) [Social Responsibility](index=29&type=section&id=%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfilled its social responsibilities through strict environmental protection measures and targeted poverty alleviation efforts - The company and its subsidiaries are listed as key pollutant-discharging units by environmental protection authorities[102](index=102&type=chunk) - The company strictly complies with environmental laws and regulations, implementing environmental impact assessments for all new projects[103](index=103&type=chunk) - The company is equipped with comprehensive environmental protection facilities, ensuring all discharged wastewater meets standards and recycling water at the Zengcheng plant[104](index=104&type=chunk) - An emergency response plan for environmental incidents has been prepared and filed, with regular training and drills conducted[105](index=105&type=chunk) - The company has been assisting three villages in Wuhua County, Meizhou City, aiming to ensure basic living needs are met by 2018[107](index=107&type=chunk)[108](index=108&type=chunk) - H1 poverty alleviation efforts included providing pension insurance for 74 people, education assistance for 108 people, and basic medical insurance for 476 people[113](index=113&type=chunk) - Industrial support projects and infrastructure construction have provided dividends to 108 impoverished households and improved village facilities[113](index=113&type=chunk)[114](index=114&type=chunk) Targeted Poverty Alleviation Results | Indicator | Unit | Quantity/Status | | :--- | :--- | :--- | | Total Funds Invested | CNY Million | 4.80 | | Number of Registered Poor Lifted from Poverty | People | 425 | | Investment in Industrial Development Projects | CNY Million | 2.32 | | Number of Registered Poor Employed | People | 83 | | Number of Students Subsidized | People | 108 | | Investment in Improving Educational Resources | CNY Million | 0.58 | - Future poverty alleviation plans include continuing to help remaining households, assisting with new rural construction, and increasing financial support[117](index=117&type=chunk) [Other Significant Matters](index=33&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company completed the re-election of its Board of Directors and Supervisory Committee and approved changes to its investment projects - On April 2, 2018, the company elected new non-independent and independent directors for the third Board of Directors[118](index=118&type=chunk) - On April 2, 2018, the company elected new non-employee representative supervisors to form the third Supervisory Committee[119](index=119&type=chunk) - On April 19, 2018, the Board of Directors approved the extension and modification of certain fund-raising investment projects[119](index=119&type=chunk) [Significant Matters of Subsidiaries](index=34&type=section&id=%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) Holding subsidiary Amason was approved for listing on the NEEQ, and the company continues to monitor commitments from other investees - Holding subsidiary Amason received approval for its stock to be listed on the National Equities Exchange and Quotations (NEEQ) on March 13, 2018[120](index=120&type=chunk) - The company will closely monitor the fulfillment of commitments by the original shareholder of Guangzhou Badoumi Advertising Co, Ltd[121](index=121&type=chunk) - The company will monitor the progress of the performance guarantee for Haining Beichen Film and Television, an investment of the media fund[122](index=122&type=chunk) [Changes in Share Capital and Shareholder Information](index=35&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Changes in Share Capital](index=35&type=section&id=%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The total number of shares remained unchanged, while restricted shares decreased by 1.48 million, correspondingly increasing unrestricted shares Changes in Share Capital | Item | Pre-Change Quantity (Shares) | Change (+/-) (Shares) | Post-Change Quantity (Shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 91,348,430 | -1,482,049 | 89,866,381 | | II. Unrestricted Shares | 953,513,357 | 1,482,049 | 954,995,406 | | III. Total Shares | 1,044,861,787 | 0 | 1,044,861,787 | Changes in Restricted Shares | Shareholder Name | Beginning Restricted Shares | Increase in Restricted Shares | Ending Restricted Shares | Lock-up Expiry Date | | :--- | :--- | :--- | :--- | :--- | | Guangzhou Xinhua Urban Development Industry Investment Enterprise (LP) | 48,780,487 | 14,634,146 | 63,414,633 | August 22, 2018 | | Guangzhou China Life Urban Development Industry Investment Enterprise (LP) | 40,081,300 | 12,024,390 | 52,105,690 | August 22, 2018 | | Total | 88,861,787 | 26,658,536 | 115,520,323 | | - There were no securities issuance and listing activities during the reporting period[129](index=129&type=chunk) [Number of Shareholders and Shareholdings](index=36&type=section&id=%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the period end, the company had 19,301 common shareholders, with Guangzhou SASAC being the largest shareholder at 74.89% - The total number of common shareholders at the end of the reporting period was **19,301**[130](index=130&type=chunk) Shareholdings of Top 10 Shareholders and Those with >5% Stakes | Shareholder Name | Nature | Shareholding Ratio | Common Shares Held (Shares) | Restricted Shares Held (Shares) | Unrestricted Shares Held (Shares) | Pledged or Frozen Status (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guangzhou SASAC | State-owned legal entity | 74.89% | 782,496,000 | 0 | 782,496,000 | None | | Guangzhou Xinhua Urban Development Industry Investment Enterprise (LP) | Domestic non-state legal entity | 4.67% | 48,780,487 | 48,780,487 | 0 | None | | Guangzhou China Life Urban Development Industry Investment Enterprise (LP) | Domestic non-state legal entity | 3.84% | 40,081,300 | 40,081,300 | 0 | None | | Central Huijin Asset Management Ltd | State-owned legal entity | 0.91% | 9,483,500 | 0 | 9,483,500 | None | | Guangzhou Jin Hong Li Investment Group Co, Ltd | Domestic non-state legal entity | 0.75% | 7,870,900 | 0 | 7,870,900 | Pledged (7,830,000) | - Guangzhou Xinhua Urban Development Industry Investment Enterprise (LP) and Guangzhou China Life Urban Development Industry Investment Enterprise (LP) are parties acting in concert[131](index=131&type=chunk) - The top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[132](index=132&type=chunk) [Changes in Controlling Shareholder or De Facto Controller](index=38&type=section&id=%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes in the company's controlling shareholder or de facto controller during the reporting period - The company's controlling shareholder did not change during the reporting period[133](index=133&type=chunk) - The company's de facto controller did not change during the reporting period[133](index=133&type=chunk) [Information on Preferred Shares](index=39&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [No Preferred Shares During the Reporting Period](index=39&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%85%AC%E5%8F%B8%E4%B8%8D%E5%AD%98%E5%9C%A8%E4%BC%98%E5%85%88%E8%82%A1) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[136](index=136&type=chunk) [Directors, Supervisors, and Senior Management](index=40&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=40&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) The shareholdings of current directors, supervisors, and senior management remained unchanged during the reporting period - The current Chairman Li Jianning held 610,000 shares, Vice Chairman and General Manager Xiao Wei held 155,000 shares, and Director, Deputy GM, and CFO Mai Yanyu held 455,625 shares at period end[138](index=138&type=chunk) - Retired employee supervisor Li Suijuan held 88,375 shares at the beginning of the period[139](index=139&type=chunk) - There were no changes in the shareholdings of directors, supervisors, and senior management during the reporting period[139](index=139&type=chunk) [Changes in Directors, Supervisors, and Senior Management](index=41&type=section&id=%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company underwent a re-election of its Board of Directors and Supervisory Committee, resulting in several personnel changes - Mai Yanyu was elected as a Director on April 2, 2018[140](index=140&type=chunk) - Jia Qingjun and Li Suijuan retired as Supervisors on April 2, 2018, upon term completion[140](index=140&type=chunk) - Li Cuixia and Zeng Yong were elected as Employee Supervisor and Supervisor, respectively, on April 2, 2018[140](index=140&type=chunk) [Information on Corporate Bonds](index=42&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%85%AC%E5%8F%B8%E5%80%BA%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [No Publicly Issued Corporate Bonds Outstanding](index=42&type=section&id=%E5%85%AC%E5%8F%B8%E4%B8%8D%E5%AD%98%E5%9C%A8%E5%85%AC%E5%BC%80%E5%8F%91%E8%A1%8C%E5%B9%B6%E5%9C%A8%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93%E6%89%80%E4%B8%8A%E5%B8%82%EF%BC%8C%E4%B8%94%E5%9C%A8%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E6%89%B9%E5%87%86%E6%8A%A5%E5%87%BA%E6%97%A5%E6%9C%AA%E5%88%B0%E6%9C%9F%E6%88%96%E5%88%B0%E6%9C%9F%E6%9C%AA%E8%83%BD%E5%85%A8%E9%A2%9D%E5%85%91%E4%BB%98%E7%9A%84%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8) The company has no publicly issued corporate bonds that were outstanding or matured but not fully redeemed as of the report date - The company has no publicly issued corporate bonds that were outstanding or matured but not fully redeemed as of the report date[143](index=143&type=chunk) [Financial Report](index=43&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Auditor's Report](index=43&type=section&id=%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[145](index=145&type=chunk) [Financial Statements](index=43&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the consolidated and parent company financial statements, reflecting the company's financial position and performance [Consolidated Balance Sheet](index=43&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2018, the company's total consolidated assets were CNY 4.13 billion, with total liabilities of CNY 0.89 billion Consolidated Balance Sheet Key Data | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 4,125,220,819.61 | 4,169,525,836.25 | | Total Liabilities | 888,476,586.20 | 938,995,380.54 | | Total Equity | 3,236,744,233.41 | 3,230,530,455.71 | [Parent Company Balance Sheet](index=46&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2018, the parent company's total assets were CNY 3.73 billion, with total liabilities of CNY 0.87 billion Parent Company Balance Sheet Key Data | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 3,732,539,588.42 | 4,300,940,741.64 | | Total Liabilities | 873,222,374.76 | 1,362,390,701.88 | | Total Equity | 2,859,317,213.66 | 2,938,550,039.76 | [Consolidated Income Statement](index=48&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2018, the company achieved total operating revenue of CNY 968.76 million and net profit attributable to parent of CNY 96.99 million Consolidated Income Statement Key Data | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 968,758,594.75 | 845,659,555.51 | | Operating Profit | 116,365,220.29 | 106,450,344.33 | | Total Profit | 114,730,474.36 | 106,473,733.76 | | Net Profit | 95,753,923.82 | 89,558,530.79 | | Net Profit Attributable to Parent | 96,987,690.05 | 91,481,689.94 | | Basic Earnings Per Share | 0.09 | 0.10 | [Parent Company Income Statement](index=51&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2018, the parent company generated operating revenue of CNY 371.08 million and a net profit of CNY 4.57 million Parent Company Income Statement Key Data | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Operating Revenue | 371,084,792.00 | 719,801,363.37 | | Operating Profit | 850,992.91 | 66,282,269.05 | | Total Profit | 352,183.34 | 66,375,827.50 | | Net Profit | 4,574,344.54 | 56,106,152.13 | [Consolidated Cash Flow Statement](index=52&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2018, net cash flow from operating activities was -CNY 75.53 million, while net cash increased by -CNY 169.16 million Consolidated Cash Flow Statement Key Data | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -75,531,809.50 | -72,817,628.52 | | Net Cash Flow from Investing Activities | 80,677,963.97 | 41,324,194.23 | | Net Cash Flow from Financing Activities | -183,226,254.80 | -148,647,035.39 | | Net Increase in Cash and Cash Equivalents | -169,164,643.62 | -177,968,417.95 | [Parent Company Cash Flow Statement](index=55&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2018, the parent company's net cash flow from operating activities was -CNY 194.31 million, with a net cash decrease of CNY 403.54 million Parent Company Cash Flow Statement Key Data | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -194,307,212.08 | -120,863,660.05 | | Net Cash Flow from Investing Activities | -24,509,311.67 | -40,529,047.99 | | Net Cash Flow from Financing Activities | -182,784,670.04 | 26,972,370.83 | | Net Increase in Cash and Cash Equivalents | -403,539,355.24 | -135,224,163.72 | [Consolidated Statement of Changes in Equity](index=56&type=section&id=%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2018, total consolidated equity was CNY 3.24 billion, with retained earnings of CNY 733.46 million Consolidated Statement of Changes in Equity Key Data | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Share Capital | 1,044,861,787.00 | 1,044,861,787.00 | | Capital Reserve | 1,294,814,860.46 | 1,294,814,860.46 | | Other Comprehensive Income | 20,015,020.75 | 25,312,349.66 | | Surplus Reserve | 108,007,001.87 | 108,007,001.87 | | Retained Earnings | 733,464,583.98 | 720,515,836.89 | | Total Equity Attributable to Parent | 3,201,163,254.06 | 3,193,511,835.88 | | Minority Interest | 35,580,979.35 | 37,018,619.83 | | Total Equity | 3,236,744,233.41 | 3,230,530,455.71 | [Parent Company Statement of Changes in Equity](index=60&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2018, the parent company's total equity was CNY 2.86 billion, with retained earnings of CNY 393.58 million Parent Company Statement of Changes in Equity Key Data | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Share Capital | 1,044,861,787.00 | 1,044,861,787.00 | | Capital Reserve | 1,290,463,945.27 | 1,290,463,945.27 | | Other Comprehensive Income | 22,405,628.89 | 22,623,856.57 | | Surplus Reserve | 108,007,001.87 | 108,007,001.87 | | Retained Earnings | 393,578,850.63 | 472,593,449.05 | | Total Equity | 2,859,317,213.66 | 2,938,550,039.76 | [Company Basic Information](index=64&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company, controlled by Guangzhou SASAC, was listed on the Shenzhen Stock Exchange in 2012 and operates in diverse cultural sectors - The company was established in June 2008 and listed on the Shenzhen Stock Exchange in May 2012 with stock code 002678[186](index=186&type=chunk)[187](index=187&type=chunk) - The company's parent and de facto controller is the Guangzhou Municipal People's Government State-owned Assets Supervision and Administration Commission[187](index=187&type=chunk) - As of June 30, 2018, the company's total issued share capital was **1,044,861,787 shares**[189](index=189&type=chunk) - The company's main business includes manufacturing and sales of pianos and digital instruments, music education, and film production[190](index=190&type=chunk) - As of June 30, 2018, the company had **22 subsidiaries** included in its consolidated financial statements[192](index=192&type=chunk)[193](index=193&type=chunk) [Basis of Preparation for Financial Statements](index=65&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis in accordance with Chinese Accounting Standards and CSRC disclosure rules - The company prepares its financial statements on a going concern basis, in accordance with Enterprise Accounting Standards and CSRC disclosure regulations[194](index=194&type=chunk) - An evaluation of the company's going concern ability for the next 12 months from June 30, 2018, revealed no significant uncertainties[195](index=195&type=chunk) [Significant Accounting Policies and Estimates](index=66&type=section&id=%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the key accounting policies and estimates applied in preparing the financial statements, covering areas like consolidation, financial instruments, and revenue recognition - The company adheres to Enterprise Accounting Standards to truly and completely reflect its financial position, operating results, and cash flows[197](index=197&type=chunk) - Financial instruments are classified as FVTPL, held-to-maturity investments, receivables, available-for-sale financial assets, or other financial liabilities[210](index=210&type=chunk) - Bad debt provisions for receivables are determined using individual assessment for significant amounts and a portfolio-based approach (aging analysis)[220](index=220&type=chunk)[221](index=221&type=chunk) - Inventory is valued using the weighted average method, with provisions for impairment made on an individual item basis at period end[226](index=226&type=chunk)[227](index=227&type=chunk) - Fixed assets are depreciated using the straight-line method over their useful lives, such as 10-40 years for buildings and 10 years for machinery[238](index=238&type=chunk) - Intangible assets are amortized on a straight-line basis, while those with indefinite useful lives are not amortized[247](index=247&type=chunk)[248](index=248&type=chunk)[250](index=250&type=chunk) - Revenue from goods is recognized when significant risks and rewards of ownership are transferred; TV series revenue is recognized upon obtaining the distribution license[268](index=268&type=chunk)[269](index=269&type=chunk) - Government grants are classified as asset-related or income-related and are recognized accordingly[273](index=273&type=chunk) [Taxes](index=80&type=section&id=%E7%A8%8E%E9%A1%B9) The company is subject to various taxes, including VAT and corporate income tax, with several entities enjoying a preferential 15% income tax rate as high-tech enterprises Main Taxes and Tax Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 16%, 17% for sales; 6% for training; 5%, 11% for rent; 3%, 6% for cultural and advertising services | | Urban Maintenance and Construction Tax | 5%, 7% | | Corporate Income Tax | 25%, 16.5%, 15% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Cultural Undertaking Development Fee | 3% | - The company and several subsidiaries, including Guangzhou Pearl River Kayserburg Piano and Guangzhou Amason Electronics, are qualified as high-tech enterprises and are subject to a **15% corporate income tax rate**[279](index=279&type=chunk)[280](index=280&type=chunk) [Notes to Consolidated Financial Statement Items](index=82&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on key items in the consolidated financial statements, including assets, liabilities, revenues, and expenses - At period end, cash and cash equivalents totaled **CNY 656.0 million**, with CNY 22.6 million held overseas[282](index=282&type=chunk) - The carrying amount of accounts receivable was **CNY 278.2 million**, with 99.75% due within one year[291](index=291&type=chunk) - The carrying amount of inventory was **CNY 809.4 million**, mainly comprising raw materials, work-in-progress, and finished goods[320](index=320&type=chunk) - The carrying amount of construction in progress was **CNY 278.3 million**, primarily for the Zengcheng factory Phase II and cultural center projects[358](index=358&type=chunk) - Short-term borrowings at period end were **CNY 161.4 million**, consisting of guaranteed and credit loans[388](index=388&type=chunk) - Employee benefits payable totaled **CNY 92.6 million**, mainly for short-term compensation and termination benefits[402](index=402&type=chunk) - Operating revenue for the period was **CNY 968.8 million**, with operating costs of **CNY 662.8 million**[452](index=452&type=chunk) - Net profit attributable to the parent company for the period was **CNY 97.0 million**[157](index=157&type=chunk) [Changes in the Scope of Consolidation](index=126&type=section&id=%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The scope of consolidation expanded to include one newly established subsidiary, Guangzhou Hengsheng Testing Co, Ltd - One new entity, Guangzhou Hengsheng Testing Co, Ltd, was added to the consolidation scope this period, established in February 2018 with a 100% effective holding[502](index=502&type=chunk) - There were no changes in the consolidation scope due to business combinations or disposals of subsidiaries during the period[493](index=493&type=chunk)[496](index=496&type=chunk)[500](index=500&type=chunk) [Interests in Other Entities](index=130&type=section&id=%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) The company holds interests in 22 subsidiaries and several associate companies, with Guangzhou Pearl River Micro-credit being a key associate - The company has interests in 22 subsidiaries, including Hong Kong Music-Trade Co, Ltd and Guangzhou Pearl River Kayserburg Piano Co, Ltd[501](index=501&type=chunk)[502](index=502&type=chunk) - Guangzhou Pearl River Micro-credit Co, Ltd is a significant associate, in which the company holds a **30.00%** stake accounted for using the equity method[508](index=508&type=chunk) Key Financial Information of Associate Guangzhou Pearl River Micro-credit Co, Ltd | Item | Ending Balance/Current Period Amount (CNY) | | :--- | :--- | | Total Assets | 271,329,753.18 | | Total Liabilities | 16,226,577.23 | | Equity Attributable to Parent | 255,103,175.95 | | Share of Net Assets based on Ownership | 76,530,952.79 | | Operating Revenue | 9,388,830.16 | | Net Profit | 2,891,235.74 | [Risks Related to Financial Instruments](index=133&type=section&id=%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company manages credit, market, and liquidity risks through customer assessments, fixed-rate borrowing, and cash flow monitoring - The company is exposed to credit risk, market risk (interest rate, currency, and other price risks), and liquidity risk[514](index=514&type=chunk) - Credit risk from trade receivables is managed by assessing new customer credit and conducting monthly reviews of aging accounts[517](index=517&type=chunk) - Interest rate risk is minimal due to fixed-rate borrowings; currency risk arises from foreign currency loans and overseas operations[518](index=518&type=chunk) - Liquidity risk is centrally controlled by the finance department through cash balance monitoring and forecasting, with no current liquidity risk identified[520](index=520&type=chunk) [Fair Value Disclosures](index=134&type=section&id=%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) Assets measured at fair value at period end consist of available-for-sale equity investments totaling CNY 3.14 million Fair Value of Assets and Liabilities at Period End | Item | Ending Fair Value (CNY) | | :--- | :--- | | Available-for-sale Financial Assets (Equity Investments) | 3,135,486.48 | | Total Assets Continuously Measured at Fair Value | 3,135,486.48 | - The fair value of financial instruments traded in active markets is determined based on quoted market prices at the balance sheet date[524](index=524&type=chunk) [Related Parties and Transactions](index=135&type=section&id=%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's parent is Guangzhou SASAC, and transactions with related parties included procurement, sales, and guarantees - The company's parent is the Guangzhou SASAC, with a **74.89%** shareholding[525](index=525&type=chunk) Related-Party Transactions for Goods and Services | Related Party | Transaction Content | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | :--- | | Huizhou Lichuang Hardware Products Co, Ltd | Processing Fees | 17,393,469.79 | 15,406,245.26 | | Fujian Pearl River-Eno Education Management Co, Ltd | Product Sales | 13,060,288.86 | 6,489,676.10 | - The company provided guarantees of **CNY 4.5 million** for Guangzhou Pearl River Micro-credit and **CNY 24.5 million** plus **EUR 5.27 million** for Pearl River Piano Group Europe GmbH[534](index=534&type=chunk)[536](index=536&type=chunk) Key Management Personnel Compensation | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 3,474,931.19 | 2,403,859.08 | Related-Party Receivables and Payables | Item | Related Party | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | :--- | | Prepayments | Huizhou Lichuang Hardware Products Co, Ltd | 3,034,033.18 | 4,912,071.19 | | Prepayments | Fujian Pearl River-Eno Education Management Co, Ltd | 737,060.00 | 0.00 | | Accounts Receivable | Fujian Pearl River-Eno Education Management Co, Ltd | 1,038,393.50 | 0.00 | | Accounts Payable | Fujian Pearl River-Eno Education Management Co, Ltd | 0.00 | 47,500.00 | | Advances from Customers | Fujian Pearl River-Eno Education Management Co, Ltd | 0.00 | 319,090.50 | [Share-based Payments](index=139&type=section&id=%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) Subsidiary Zhuguang Media has a stock option plan to grant up to 22.5 million options at an exercise price of CNY 1 per share - Zhuguang Media plans to grant a total of **22,500,000** stock options at an exercise price of **CNY 1 per share**[548](index=548&type=chunk) - The performance condition for exercising the options is a return on net assets (excluding non-recurring items) of **≥10%**[550](index=550&type=chunk)[551](index=551&type=chunk) - Based on the current business model, the estimated number of exercisable options for 2018 is zero[551](index=551&type=chunk) [Commitments and Contingencies](index=140&type=section&id=%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company has non-cancellable operating lease commitments with future minimum payments totaling CNY 30.97 million Future Minimum Lease Payments under Non-cancellable Operating Leases | Period | June 30, 2018 (CNY) | | :--- | :--- | | Within 1 year | 3,227,433.44 | | 1 to 2 years | 5,747,989.34 | | 2 to 3 years | 3,801,753.74 | | Over 3 years | 18,194,126.30 | | Total | 30,971,302.82 | - Contingent liabilities arising from guarantees provided to other entities are detailed in the related-party guarantee section[553](index=553&type=chunk) - The company has no other significant contingencies to disclose[554](index=554&type=chunk) [Post-Balance Sheet Events](index=141&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) There were no significant post-balance sheet events such as non-adjusting events, profit distributions, or sales returns - The company had no significant non-adjusting events during the reporting period[556](index=556&type=chunk) - The company had no profit distribution plans during the reporting period[557](index=557&type=chunk) - The company had no sales returns during the reporting period[557](index=557&type=chunk) [Other Significant Matters](index=141&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company had no other significant matters such as prior period error corrections, debt restructuring, or discontinued operations - The company had no prior period error corrections, debt restructuring, asset swaps, annuity plans, or discontinued operations[558](index=558&type=chunk)[561](index=561&type=chunk)[562](index=562&type=chunk)[563](index=563&type=chunk) - The company has no reportable segments[565](index=565&type=chunk) [Notes to Parent Company Financial Statement Items](index=142&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section details key items in the parent company's financial statements, including receivables, long-term investments, and investment income - The carrying amount of accounts receivable at period end was **CNY 19.69 million**, all due within one year[568](index=568&type=chunk) - The carrying amount of other receivables at period end was **CNY 18.47 million**, all due within one year[576](index=576&type=chunk) Parent Company Long-term Equity Investments | Item | Ending Carrying Amount (CNY) | Beginning Carrying Amount (CNY) | | :--- | :--- | :--- | | Investments in Subsidiaries | 1,810,134,664.19 | 1,809,234,664.19 | | Investments in Associates and Joint Ventures | 83,414,757.16 | 82,440,030.04 | | Total | 1,893,549,421.35 | 1,891,674,694.23 | Parent Company Operating Revenue and Costs | Item | Current Period Revenue (CNY) | Current Period Cost (CNY) | | :--- | :--- | :--- | | Main Business | 365,069,317.69 | 355,244,022.30 | | Other Business | 6,015,474.31 | 726,641.96 | | Total | 371,084,792.00 | 355,970,664.26 | Parent Company Investment Income | Item | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Income from long-term equity investments (cost method) | 3,474,931.19 | 0.00 | | Income from long-term equity investments (equity method) | 30,974,727.12 | 2,403,859.08 | | Income from wealth management products | 1,551,859.08 | 111,000.00 | | Total | 36,001,517.39 | 2,514,859.08 | [Supplementary Information](index=149&type=section&id=%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides details on non-recurring profit and loss items and calculations for return on equity and earnings per share Details of Current Non-recurring Profit and Loss | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -991,618.35 | | Government Subsidies Included in Current Profit/Loss | 4,411,087.00 | | Gains/Losses from Entrusted Investments or Asset Management | 6,152,310.93 | | Other Non-operating Income and Expenses | -1,634,745.93 | | Less: Income Tax Impact | 1,190,555.05 | | Minority Interest Impact | 382,662.49 | | Total | 6,363,816.11 | Return on Equity and Earnings Per Share | Profit for the Period | Weighted Average ROE | Basic EPS (CNY/Share) | Diluted EPS (CNY/Share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders | 2.99% | 0.09 | 0.09 | | Net profit attributable to common shareholders (excluding non-recurring items) | 2.80% | 0.09 | 0.09 | - There are no differences in net profit or net assets between financial reports prepared under IFRS and Chinese Accounting Standards[599](index=599&type=chunk) [List of Documents for Inspection](index=151&type=section&id=%E7%AC%AC%E5%8D%81%E4%B8%80%E8%8A%82%20%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) [Documents for Inspection](index=151&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6) This section lists the reference documents available for inspection, including signed financial statements and all public filings - Documents for inspection include financial statements signed and sealed by the company's responsible persons[601](index=601&type=chunk) - Documents for inspection include the originals of all company documents and announcements publicly disclosed on CSRC-designated websites during the reporting period[601](index=601&type=chunk) - Documents for insp

广州珠江钢琴集团股份有限公司 2017 年年度报告全文 证券代码：002678 证券简称：珠江钢琴 公告编号：2018-027 广州珠江钢琴集团股份有限公司 （Guangzhou Pearl River Piano Group Co.,Ltd） 2017 年年度报告 2018 年 04 月 1 广州珠江钢琴集团股份有限公司 2017 年年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 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。 公司负责人李建宁、主管会计工作负责人麦燕玉及会计机构负责人(会计主 管人员)梁永恒声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 1、宏观经济环境影响本公司业务的风险 钢琴、数码乐器、音乐教育消费 属于人类精神文明消费，是物质文明发展到一定程度的产物，因此钢琴、数码 乐器、音乐教育消费受宏观经济和音乐文化普及等多重因素影响。宏观经济的 周期性波动将一定程度上影响消费者实际可支配收入水平以及消费者信心指 数。虽然近几年我国的国内生产总值、国民 ...

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) [Board of Directors' Statement](index=2&type=section&id=Board%20of%20Directors%27%20Statement) The company's management guarantees the report's truthfulness, accuracy, and completeness, assuming legal responsibility - The company's management guarantees the truthfulness, accuracy, and completeness of the report content, assuming corresponding legal responsibility[4](index=4&type=chunk) - All directors attended the board meeting that reviewed this quarterly report[5](index=5&type=chunk) [Company Basic Information](index=3&type=section&id=Item%202.%20Company%20Basic%20Information) [Key Accounting Data and Financial Indicators](index=3&type=section&id=Item%202.1.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Q1 2018 saw revenue and net profit growth, but operating cash flow significantly declined, worsening the cash position Key Financial Indicators for Q1 2018 | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 479,314,264.56 | 425,178,815.38 | 12.73 | | Net Profit Attributable to Shareholders | 50,977,621.73 | 47,997,312.78 | 6.21 | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 50,441,336.36 | 47,138,861.55 | 7.01 | | Net Cash Flow from Operating Activities | -82,496,319.03 | -48,493,875.21 | -70.12 | | Basic Earnings Per Share (CNY/share) | 0.05 | 0.05 | 0.00 | | Weighted Average Return on Net Assets | 2.52% | 2.61% | -0.09 | | Total Assets (vs. prior year-end) | 4,008,289,949.65 | 4,169,525,836.25 | -3.87 | | Net Assets Attributable to Shareholders (vs. prior year-end) | 3,241,746,105.85 | 3,193,511,835.88 | 1.51 | Details of Non-recurring Gains and Losses | Item | Amount (CNY) | | :--- | :--- | | Government grants recognized in current profit/loss | 2,165,030.73 | | Other non-operating income and expenses | -1,534,106.76 | | Less: Income tax impact | 94,638.60 | | **Total** | **536,285.37** | [Shareholder Information](index=4&type=section&id=Item%202.2.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period-End) The company has **19,981** shareholders, with Guangzhou SASAC as controlling shareholder and two entities forming a concerted action group - At the end of the reporting period, the company had **19,981** common shareholders[10](index=10&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Guangzhou Municipal People's Government State-owned Assets Supervision and Administration Commission | State-owned Legal Person | 74.89% | 782,496,000 | | Guangzhou Xinhua Urban Development Industry Investment Enterprise (Limited Partnership) | Domestic Non-state-owned Legal Person | 4.67% | 48,780,487 | | Guangzhou Guoshou Urban Development Industry Investment Enterprise (Limited Partnership) | Domestic Non-state-owned Legal Person | 3.84% | 40,081,300 | | Central Huijin Asset Management Co., Ltd. | State-owned Legal Person | 0.91% | 9,483,500 | - Shareholders 'Guangzhou Xinhua Urban Development Industry Investment Enterprise (Limited Partnership)' and 'Guangzhou Guoshou Urban Development Industry Investment Enterprise (Limited Partnership)' constitute concerted parties due to having the same actual controller[12](index=12&type=chunk) [Significant Events](index=6&type=section&id=Item%203.%20Significant%20Events) [Analysis of Major Financial Data Changes](index=6&type=section&id=Item%203.1.%20Changes%20and%20Reasons%20for%20Major%20Financial%20Data%20and%20Indicators%20in%20the%20Reporting%20Period) Net cash flow from operating activities decreased by **70.12%** year-on-year, primarily due to increased employee severance and wages - Net cash flow from operating activities decreased by **70.12%** year-on-year, primarily due to increased employee severance payments and wages during the reporting period[15](index=15&type=chunk) [Progress of Significant Events](index=6&type=section&id=Item%203.2.%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company advanced property asset disposal, registered address change, subsidiary listing, and board re-election - The company initiated asset disposal procedures for multiple factory buildings and residential properties in Guangzhou, which have been listed on the Guangzhou Property Rights Exchange[16](index=16&type=chunk) - The company's registered address changed to 'Building 1, Factory (Self-numbered Building 3), No. 38 Xiangshan Avenue, Yongning Street, Zengcheng District, Guangzhou City'[17](index=17&type=chunk) - Controlled subsidiary Guangzhou Pearl River Amason Digital Musical Instrument Co., Ltd. was officially listed on the New Third Board on April 4, 2018[17](index=17&type=chunk) - The company completed the re-election of its third Board of Directors and Supervisory Board[18](index=18&type=chunk)[19](index=19&type=chunk) [2018 H1 Performance Forecast](index=7&type=section&id=Item%203.4.%20Forecast%20of%20Operating%20Performance%20for%20January-June%202018) The company forecasts **0% to 30%** H1 2018 net profit growth, driven by brand, smart education, and new business initiatives 2018 H1 Performance Forecast | Item | Forecast | | :--- | :--- | | Net Profit Change Range | 0.00% to 30.00% | | Net Profit Range (CNY ten thousand) | 9,148.17 to 11,892.62 | | Net Profit for Same Period in 2017 (CNY ten thousand) | 9,148.17 | - Reasons for performance growth include brand premiumization, strategic deployment in smart pianos and art education, expansion into cultural media businesses, and accelerated industrial structure transformation and upgrading[23](index=23&type=chunk) [Other Significant Disclosures](index=7&type=section&id=Item%203.3.%20Other%20Significant%20Disclosures) No overdue commitments, irregular external guarantees, or non-operating fund appropriation by controlling shareholders were reported - During the reporting period, the company had no overdue unfulfilled commitments from actual controllers, shareholders, or related parties[22](index=22&type=chunk) - The company had no irregular external guarantees or non-operating appropriation of company funds by the controlling shareholder or its related parties during the reporting period[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) [Investor Relations Activities](index=8&type=section&id=Item%203.8.%20Registration%20Form%20for%20Investor%20Relations%20Activities%20in%20the%20Reporting%20Period) In Q1 2018, the company engaged in **4** telephone communications with individual investors regarding operations and announcements Q1 2018 Investor Relations Activities Record | Reception Date | Reception Method | Type of Recipient | Content of Communication | | :--- | :--- | :--- | :--- | | January 17, 2018 | Telephone Communication | Individual | Understanding company operations and related announcement content | | February 06, 2018 | Telephone Communication | Individual | Understanding company operations | | March 12, 2018 | Telephone Communication | Individual | Understanding company operations | | March 22, 2018 | Telephone Communication | Individual | Understanding company operations and related announcement content |

广州珠江钢琴集团股份有限公司 2017 年第三季度报告正文 证券代码：002678 证券简称：珠江钢琴 公告编号：2017-060 广州珠江钢琴集团股份有限公司 2017 年第三季度报告正文 2017 年 10 月 1 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人李建宁、主管会计工作负责人麦燕玉及会计机构负责人(会计主 管人员)梁永恒声明：保证季度报告中财务报表的真实、准确、完整。 2 广州珠江钢琴集团股份有限公司 2017 年第三季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 广州珠江钢琴集团股份有限公司 2017 年第三季度报告正文 第一节 重要提示 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增 | | --- | --- | --- | --- | --- | | | | | | 减 | | 总资产（元） | 4,192,414,100.89 | ...

广州珠江钢琴集团股份有限公司 2017 年半年度报告全文 证券代码：002678 证券简称：珠江钢琴 公告编号：2017-038 广州珠江钢琴集团股份有限公司 （Guangzhou Pearl River Piano Group Co.,Ltd） 2017 年半年度报告 2017 年 08 月 1 广州珠江钢琴集团股份有限公司 2017 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 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。 公司负责人李建宁、主管会计工作负责人麦燕玉及会计机构负责人(会计主 管人员)梁永恒声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 1、宏观经济环境影响本公司业务的风险 钢琴、数码钢琴、音乐教育消费 属于人类精神文明消费，是物质文明发展到一定程度的产物，因此钢琴、数码 钢琴、音乐教育消费受宏观经济和音乐文化普及等多重因素影响。宏观经济的 周期性波动将一定程度上影响消费者实际可支配收入水平以及消费者信心指数。 虽然近几年我国的国内生 ...

广州珠江钢琴集团股份有限公司 2017 年第一季度报告全文 证券代码：002678 证券简称：珠江钢琴 公告编号：2017-019 广州珠江钢琴集团股份有限公司 （Guangzhou Pearl River Piano Group Co.,Ltd） 2017 年第一季度报告 2017 年 04 月 1 广州珠江钢琴集团股份有限公司 2017 年第一季度报告全文 第一节 重要提示 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、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人李建宁、主管会计工作负责人麦燕玉及会计机构负责人(会计主 管人员)梁永恒声明：保证季度报告中财务报表的真实、准确、完整。 2 广州珠江钢琴集团股份有限公司 2017 年第一季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否因会计政策变更及会计差错更正等追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增 | | | --- | --- | --- | -- ...

广州珠江钢琴集团股份有限公司 2016 年年度报告全文 证券代码：002678 证券简称：珠江钢琴 公告编号：2017-010 广州珠江钢琴集团股份有限公司 （Guangzhou Pearl River Piano Group Co.,Ltd） 2016 年年度报告 2017 年 04 月 1 广州珠江钢琴集团股份有限公司 2016 年年度报告全文 第一节 重要提示、目录和释义 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的 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。 公司负责人李建宁、主管会计工作负责人麦燕玉及会计机构负责人(会计主 管人员)梁永恒声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 1、宏观经济环境影响本公司业务的风险 钢琴、数码钢琴、音乐教育消费 属于人类精神文明消费，是物质文明发展到一定程度的产物，因此钢琴、数码 钢琴、音乐教育消费受宏观经济和音乐文化普及等多重因素影响。宏观经济的 周期性波动将一定程度上影响消费者实际可支配收入水平以及消费者信心指 数。虽然近几年我国的国内生产总值、国 ...