证券代码：300081 证券简称：恒信东方 恒信东方文化股份有限公司 投资者关系活动记录表 | --- | --- | --- | |--------------------|---------------|----------------| | | | 编号：2023-001 | | | □特定对象调研 | □分析师会议 | | | □媒体采访 | 业绩说明会 | | 投资者关系活动类别 | □新闻发布会 □ | 路演活动 | | | □现场参观 | | □其他 参与单位名称及人员姓名 线上参与公司2022年度网上业绩说明会的投资者 时间 2023 年 5 月 11 日 15:00-17:00 地点 价值在线（https://www.ir-online.com.cn/）网络互动 董事长兼总经理 孟楠 独立董事 吴灵犀 上市公司接待人员姓名 副总裁兼董事会秘书 宫泽茹 财务总监 王林海 投资者关系活动主要内容 介绍 详见附件 附件清单（如有） 恒信东方 2022 年度网上业绩说明会问题列表 日期 2023 年 5 月 11 日 附件：恒信东方 2022 年度网上业绩说明会问题列表 1.请问: 2022 年第 ...

出席本次网上业绩说明会的人员有：公司董事长兼总经理孟楠先生、独立董 事吴灵犀先生、副总裁兼董事会秘书宫泽茹女士、财务总监王林海先生。欢迎广 大投资者积极参与。 1 证券代码：300081 证券简称：恒信东方 公告编号：2023-047 恒信东方文化股份有限公司 关于举办2022年度网上业绩说明会的公告 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。 恒信东方文化股份有限公司（以下简称"公司"）已于2023年4月28日在巨潮 资讯网（http://www.cninfo.com.cn/）上披露了《2022年年度报告》及《2022年年 度报告摘要》。 为了使广大投资者能够进一步了解公司经营业绩等方面的情况，公司将于 2023年5月11日（星期四）下午15：00至17：00在"价值在线"（www.ir-online.cn） 举办2022年度网上业绩说明会。投资者可于2023年5月11日（星期四）15：00-17： 00通过网址https://eseb.cn/145QhvhQHew或使用微信扫一扫以下小程序码即可进 入参与互动交流。投资者可于2023年5月11日前进行访 ...

Financial Performance - The company's operating revenue for 2022 was ¥489,278,927.02, representing a slight increase of 0.51% compared to ¥486,798,921.39 in 2021[33]. - The net profit attributable to shareholders for 2022 was -¥420,671,302.29, an improvement of 18.06% from -¥513,372,364.79 in the previous year[33]. - The net cash flow from operating activities was ¥29,577,915.27, a significant increase of 463.25% compared to -¥8,142,490.73 in 2021[33]. - The total assets at the end of 2022 were ¥2,117,989,582.76, down 17.42% from ¥2,564,861,338.07 at the end of 2021[33]. - The net assets attributable to shareholders decreased by 15.21% to ¥1,839,095,009.72 from ¥2,168,887,410.73 in 2021[33]. - The basic earnings per share for 2022 was -¥0.6956, an improvement of 28.28% from -¥0.9699 in 2021[33]. - The weighted average return on equity was -21.06%, an improvement of 7.24% from -28.30% in the previous year[33]. - The company reported a net loss for each quarter in 2022, with the fourth quarter loss being the largest at -¥295,551,511.03[36]. - The net profit attributable to shareholders after deducting non-recurring gains and losses for 2022 was -32,962,450.16 CNY, compared to -58,010,208.29 CNY in 2021, indicating a significant improvement[37]. - The company reported a significant decrease in the cost of sales for digital creative products, which dropped by 65.56% to CNY 60,644,883.53[97]. Business Operations and Strategy - In 2022, the company experienced significant operational losses due to underperformance in LBE, preschool education products, and VR gaming business[5]. - The company successfully launched the intelligent computing system integration business and completed the construction of the Hengtong Chain BaaS platform based on POA consensus algorithm for digital identity and asset management in the metaverse[6]. - The company is focusing on the integration of IP, CG, and VR digital creativity, anticipating deep cooperation with multiple cities in metaverse application scenarios and infrastructure in 2023[10]. - The company aims to leverage cultural IP to create long-term emotional connections with users in the metaverse, distinguishing its approach from competitors[7]. - The company is focusing on expanding its presence in the AI+ surveillance market, which is increasingly penetrating various sectors such as finance and public safety[46]. - The company is actively exploring new business systems and profit models in the integration of virtual reality and cultural tourism, aiming to enhance its competitive strength in the industry[86]. - The company is committed to enhancing its product offerings and technological advancements to meet the evolving demands of the digital economy[134]. - The company is exploring market expansion opportunities through strategic partnerships and acquisitions in the digital content sector[134]. Research and Development - The company accumulated over 1 PB of high-quality digital assets and holds 50 technology patents in areas such as image semantic segmentation and panoramic video compression[4]. - The company has developed a complete VR interactive creation system, enhancing its product innovation and user experience through advanced technologies[77]. - The company has developed a smart virtual environment that combines VR and AI technologies, completing all development work by year-end[102]. - The company aims to explore the integration of VR and AI technologies for batch generation of VR content, providing low-cost solutions[102]. - R&D investment in 2022 amounted to ¥76,517,886.92, accounting for 15.64% of operating revenue, a decrease from 16.40% in 2021[105]. Market Trends and Industry Insights - The digital creative industry is rapidly developing, with significant growth potential driven by advancements in AI, IoT, cloud computing, and big data[44]. - The demand for AI computing power is experiencing explosive growth, driven by the rise of AI-generated content (AIGC), which is expected to account for 10% of all generated data by 2025[47]. - The overall market for digital creative industries is characterized by intense competition and a growing number of enterprises, indicating a strategic direction for future growth[44]. - The Chinese government has initiated a cultural digitalization strategy, aiming to establish a comprehensive cultural service supply system by the end of the 14th Five-Year Plan period[45]. Governance and Management - The company has established a governance structure that complies with relevant laws and regulations, ensuring independent operation from its controlling shareholder[155]. - The company has undergone significant management changes, with multiple executives resigning for personal reasons, including the former Chairman Wang Bing and Vice General Manager Fu Wei[166][168]. - The company has a diverse board with members holding advanced degrees and extensive experience in various sectors, including finance, management, and technology[169][171]. - The company is focusing on enhancing its management structure to align with its current development needs, leading to the dismissal of non-independent director Pan Chao[167][168]. - The company has implemented a structured decision-making process for determining executive compensation, involving both the board and shareholders[182]. Employee and Talent Management - The total number of employees at the end of the reporting period was 639, with 72 in the parent company and 567 in major subsidiaries[192]. - The company has established a scientific talent management system to enhance recruitment, training, and incentive mechanisms to boost employee productivity and creativity[137]. - The company has a total of 34 employees with a master's degree or above, and 353 employees with a bachelor's degree[192]. - The company has implemented a stock incentive plan, with 4.365 million shares of restricted stock repurchased and canceled at a price of 6.30 yuan per share due to unmet performance targets[196]. Future Outlook - The company aims to leverage existing IP resources to expand its VR IP offerings, with a focus on children's original and co-produced IPs that include VR adaptation rights[84]. - The company plans to enhance its digital immersive cultural tourism projects, focusing on VR/CG content production and LBE urban entertainment operations, aiming to increase revenue through upgraded VR entertainment products and new product development[135]. - The company is committed to steadily advancing its fundraising project investments to ensure that the raised funds generate benefits as planned[147].

恒信东方文化股份有限公司 2023 年第一季度报告 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。 恒信东方文化股份有限公司 2023 年第一季度报告 证券代码：300081 证券简称：恒信东方 公告编号：2023-039 重要内容提示： 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、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。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的真实、准确、完 整。 3.第一季度报告是否经过审计 □是 否 1 恒信东方文化股份有限公司 2023 年第一季度报告 一、主要财务数据 （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 追溯调整或重述原因 会计政策变更 □会计差错更正 □同一控制下企业合并 □其他原因 | | 本报告期 | 上年同期 | | 本报告期比上年同期 | | --- | --- | --- | --- | --- | | | | | | 增减（%） | | | | 调整前 | 调 ...

Group 1: Company Overview - Hengxin Mobile is positioned as a technology company within the film industry, focusing on CG production and virtual reality content [3] - The company has a comprehensive business model that includes full CG film production, virtual reality experiences, and IP commercial operations [3] Group 2: Business Operations - Hengxin Mobile's main business segments include IP-based CG film and animation production, virtual reality content creation, and organization of children's animation events [3][4] - The subsidiary Huakai Film's technical team is developing a social production platform to leverage artistic and software talent for project execution [4] Group 3: Talent and Resources - The company acknowledges a perpetual need for talent and is working on a social production platform to facilitate talent sharing [4] - Zhongke Pangu, another subsidiary, focuses on venue system integration and holds 44 software copyrights and 4 patents [4] Group 4: Valuation and Financial Assessment - The valuation of the recent transaction was determined using the income approach, considering future revenue projections and various factors affecting shareholder equity value [5]

Group 1: Company Overview - The main business scope includes CG and VR content production, children's industry chain development, LBE (Location Based Entertainment) new urban entertainment, internet video application products and services, and sales and services of mobile information products [3][4]. - The company has undergone a comprehensive cleanup of its traditional mobile information product sales and services, with most of the business either completed or adjusted during the reporting period [4]. Group 2: Impact of 5G Technology - The arrival of 5G will significantly promote the development of VR through ultra-high-speed data transmission, ultra-low latency, and high-capacity cloud storage, enhancing the immersive and interactive experience of VR [4][5]. - The company plans to increase investment in VR technology applications and explore market opportunities driven by national industrial policies and the growing demand as 5G becomes widespread [5][6]. Group 3: Investment in VRC - The Virtual Reality Company (VRC) is a leading US firm in VR content creation, focusing on story-driven VR content, with notable achievements including an Oscar-winning art director [6][7]. - The investment aims to leverage VRC's international IP resources and creative capabilities to enhance the company's own team and improve competitive barriers in the industry [7][8]. Group 4: Fundraising and Project Allocation - The company plans to raise up to 1 billion yuan (100,000 million) through a private placement, with funds allocated to three main projects: AI virtual ecosystem engine system for VR development, VR digital asset production, and VR venue operation center [8][9]. - The VR digital asset production project will develop over 10,000 types of digital assets, including ancient Chinese architecture, modern urban scenes, natural landscapes, and fantasy worlds [9][10]. Group 5: VR Venue Operation - The company aims to operate 4,000 VR experience centers nationwide through partnerships, providing proprietary VR children's seats, dynamic seats, and over 100 high-quality VR educational and entertainment interactive contents [10].

Group 1: Company Overview and Financial Performance - The company faced significant challenges in 2020 due to the COVID-19 pandemic, resulting in a decline in revenue and net profit compared to the previous year [3][5] - Internet video application products and services saw a year-on-year increase of 14.71%, primarily driven by growth in terminal sales from projects like Tianyi Smart Home [3] - The company reported a 29% increase in operating expense ratio, which negatively impacted performance [6] Group 2: Business Strategy and Future Outlook - The company aims to enhance its core business capabilities in the digital creative industry to support long-term sustainable operations [5][6] - Future projects in the LBE (Location-Based Entertainment) sector are anticipated, with specific details to be disclosed in the annual report [4] - The company is focused on expanding its VR and CG content production capabilities, leveraging its technological advantages and IP resources [4][7] Group 3: Investor Relations and Market Position - The company emphasizes the importance of investor relations management and actively engages with various investors to communicate its strategic direction [3][4] - The company has established partnerships with major telecom operators like China Mobile and China Unicom in the family monitoring camera business [6] - The company is exploring opportunities for mergers and acquisitions based on strategic development plans and market conditions [8][9] Group 4: Challenges and Risks - The company acknowledges that its revenue and net profit have been unstable since its listing, partly due to industry characteristics and increased market competition [5] - The user growth rate for the AI Family platform slowed in 2020 compared to 2019, primarily due to the impact of the pandemic on B-end partnerships with kindergartens [8][9]

Group 1: Company Overview - The company focuses on the development of a digital creative industry driven by "artistic creativity + visual technology" [2] - Main business areas include VR and CG content production, children's industry chain development, and location-based entertainment (LBE) [3] Group 2: VR Product Development - The VR game "Drunken Iron Fist VR" was launched in January 2021 on the STEAM platform for global users [3] - The company has developed over 70 VR educational videos and more than 20 interactive VR teaching contents covering various subjects [3][4] Group 3: VR Education Market - Plans to launch VR educational products targeting preschool, primary and secondary education, and adult education markets [4] - VR educational products include "Space Academy - VR Future Classroom" and patriotic education experiences [4] Group 4: Competitive Advantages - The company has early positioning in the VR/AR field with rich experience and technical reserves, providing a market first-mover advantage [4] - It integrates IP creation, VR/CG content production, and business expansion, making it one of the few listed companies in this sector [4] Group 5: Fundraising and Project Investment - The company plans to raise up to 985 million yuan through a targeted stock issuance, with funds allocated for VR development projects including an AI virtual ecosystem engine and VR digital asset production [5]

[Key Financial Data](index=2&type=section&id=Item%20I.%20Key%20Financial%20Data) This section provides an overview of the company's key financial performance, non-recurring gains and losses, and detailed analysis of changes in balance sheet, income statement, and cash flow items [Key Accounting Data and Financial Indicators](index=2&type=section&id=Item%20(I)%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company experienced significant declines in operating revenue and net profit attributable to shareholders, with deteriorating net cash flow from operating activities and slight decreases in total assets and owner's equity during Q3 and YTD 2022 Overview of Key Accounting Data and Financial Indicators | Indicator | Current Period (Q3 2022) | YoY Change (Q3) | Year-to-Date (YTD 2022) | YoY Change (YTD) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 64,629,652.40 | -51.95% | 205,859,527.64 | -47.37% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | -39,799,685.86 | -421.21% | -125,119,791.26 | -645.36% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) (CNY) | -41,759,798.14 | -15,355.64% | -132,732,456.59 | -194.06% | | Net Cash Flow from Operating Activities (CNY) | -- | -- | -59,287,305.59 | -102.20% | | Basic Earnings Per Share (CNY/share) | -0.066 | -375.00% | -0.2069 | -571.30% | | Diluted Earnings Per Share (CNY/share) | -0.066 | -375.00% | -0.2069 | -571.30% | | Weighted Average Return on Net Assets | -1.89% | -2.50% | -5.90% | -7.03% | | Indicator | End of Current Period (Sep 30, 2022) | End of Prior Year (Dec 31, 2021) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets (CNY) | 2,343,521,051.90 | 2,564,861,338.07 | -8.63% | | Total Equity Attributable to Shareholders of Listed Company (CNY) | 2,161,429,658.42 | 2,168,887,410.73 | -0.34% |[5](index=5&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=2&type=section&id=Item%20(II)%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, non-recurring gains primarily stemmed from wealth management income and government subsidies, partially offset by non-current asset disposal losses and litigation expenses, resulting in a positive year-to-date total Non-Recurring Gains and Losses Items and Amounts (Year-to-Date) | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -1,130,448.19 | Mainly losses from scrapped fixed assets | | Government Grants Recognized in Current Profit/Loss | 3,189,636.81 | Mainly tax refunds and deferred income received | | Gains/Losses from Entrusted Investments or Asset Management | 4,398,833.51 | Entirely wealth management income | | Gains/Losses from Debt Restructuring | 765,211.05 | | | Other Non-Operating Income and Expenses Apart from the Above | -776,428.55 | Mainly litigation losses | | Other Income/Loss Items Meeting Definition of Non-Recurring Gains/Losses | 1,304,305.68 | Mainly additional VAT deductions | | Less: Income Tax Impact | 161,364.98 | | | Impact on Minority Interests (After Tax) | -22,920.00 | | | **Total** | **7,612,665.33** | -- |[6](index=6&type=chunk) - The company has no other income or loss items meeting the definition of non-recurring gains and losses, nor has it classified non-recurring items listed in explanatory announcements as recurring gains and losses[7](index=7&type=chunk) [Changes and Reasons for Key Accounting Data and Financial Indicators](index=3&type=section&id=Item%20(III)%20Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section details significant changes and their specific reasons for major balance sheet, income statement, and cash flow statement items during the reporting period, reflecting notable shifts in the company's operating, investing, and financing activities [Significant Changes and Reasons for Balance Sheet Items](index=3&type=section&id=Item%201.%20Significant%20Changes%20and%20Reasons%20for%20Balance%20Sheet%20Items) This section analyzes the significant changes in key balance sheet items and their underlying causes, providing insights into the company's financial position shifts Changes in Major Balance Sheet Items | Balance Sheet Item | Period-End Balance (CNY) | Dec 31, 2021 (CNY) | Change Rate | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 261,719,770.42 | 693,179,537.79 | -62.24% | Funds used for operating payments, wealth management product purchases, and external investments | | Financial Assets Held for Trading | 251,834,000.00 | 181,834,000.00 | 38.50% | Idle funds used to purchase wealth management products | | Accounts Receivable | 76,848,294.30 | 130,706,290.14 | -41.21% | Collection of some customer payments from the beginning of the period | | Prepayments | 68,504,264.31 | 28,633,800.42 | 139.24% | Prepayments made for external payments not yet settled | | Investments in Other Equity Instruments | 213,017,435.76 | 116,267,435.76 | 83.21% | Increase in external investments | | Right-of-Use Assets | 19,730,379.29 | 3,832,920.64 | 414.76% | Increase in leases exceeding one year | | Development Expenditures | 17,992,642.12 | 6,020,087.83 | 198.88% | Increase in capital expenditure for R&D projects | | Short-Term Borrowings | 155,474,686.94 | 229,249,274.79 | -32.18% | Repayment of bank loans | | Taxes Payable | 2,496,893.41 | 9,578,239.52 | -73.93% | Payment of taxes accrued at the end of the previous year | | Non-Current Liabilities Due Within One Year | 8,410,296.79 | 3,652,744.00 | 130.25% | Increase in lease liabilities due within one year | | Lease Liabilities | 13,135,841.07 | 2,382,845.63 | 451.27% | Recognition of increased leases exceeding one year | | Provisions | 4,338,981.65 | 20,608,200.00 | -78.95% | Part of the provisions at the beginning of the period has been paid | | Treasury Shares | 21,040,477.90 | 48,728,977.90 | -56.82% | Cancellation of repurchased treasury shares due to expired equity incentives | | Minority Interests | -117,456,374.00 | 4,631,978.34 | -2635.77% | Transfer of partial equity in a subsidiary |[9](index=9&type=chunk)[10](index=10&type=chunk) [Significant Changes and Reasons for Income Statement Items](index=4&type=section&id=Item%202.%20Significant%20Changes%20and%20Reasons%20for%20Income%20Statement%20Items) This section details the significant changes in key income statement items and their underlying causes, reflecting shifts in the company's profitability and operational efficiency Changes in Major Income Statement Items (Year-to-Date) | Income Statement Item | Jan-Sep 2022 (CNY) | Jan-Sep 2021 (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 205,859,527.64 | 391,141,971.92 | -47.37% | Decrease in revenue from digital creative products and internet video application services | | Operating Cost | 150,939,674.67 | 264,291,786.62 | -42.89% | Decreased proportionally with operating revenue | | Selling Expenses | 73,069,741.32 | 55,646,156.05 | 31.31% | Increase in labor costs and intangible asset amortization | | Administrative Expenses | 57,933,422.52 | 42,355,084.91 | 36.78% | Increase in labor costs, intangible asset amortization, and lease expenses | | Financial Expenses | 1,115,491.18 | 6,520,201.68 | -82.89% | Decrease in interest expense, increase in interest income | | Investment Income | 2,406,471.00 | 9,788,230.03 | -75.41% | Significant increase in investment income from disposal of financial assets held for trading in the prior period | | Gains from Changes in Fair Value | - | 50,881,689.37 | -100.00% | Fair value changes of financial assets held for trading in the prior period | | Asset Impairment Losses | -1,064,193.39 | -599,516.73 | 77.51% | Higher provision for inventory impairment losses | | Non-Operating Expenses | 2,052,228.48 | 332,934.99 | 516.41% | Increase in estimated litigation losses and fixed asset disposal losses | | Income Tax Expense | 1,309,694.24 | -1,137,150.53 | 215.17% | Decrease in taxable temporary differences due to disposal of financial assets held for trading in the prior period | | Minority Interest Income/Loss | -7,299,188.18 | 3,026,406.63 | -341.18% | Change in minority shareholder equity proportion | | Net Other Comprehensive Income After Tax | 2,240,335.28 | -689,520.80 | 424.91% | Exchange rate fluctuations increased foreign currency translation differences |[11](index=11&type=chunk)[12](index=12&type=chunk) [Significant Changes and Reasons for Cash Flow Statement Items](index=5&type=section&id=Item%203.%20Significant%20Changes%20and%20Reasons%20for%20Cash%20Flow%20Statement%20Items) This section outlines the significant changes in key cash flow statement items and their underlying causes, illustrating shifts in the company's liquidity and cash generation capabilities Changes in Major Cash Flow Statement Items (Year-to-Date) | Cash Flow Statement Item | Jan-Sep 2022 (CNY) | Jan-Sep 2021 (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Tax Refunds Received | 15,987,087.98 | 1,664,257.02 | 860.61% | Higher VAT input tax credit refunds | | Other Cash Received Related to Operating Activities | 19,407,524.02 | 50,279,822.67 | -61.40% | More intercompany receivables received in the prior period | | Net Cash Flow from Operating Activities | -59,287,305.59 | -29,321,304.29 | -102.20% | Decrease in cash received from sales of goods and services, increase in taxes paid and labor costs | | Cash Received from Disposal of Investments | 62,469,252.00 | 244,539,693.53 | -74.45% | More cash recovered from disposal of financial assets held for trading in the prior period | | Net Cash Received from Disposal of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 321,424.48 | 17,855.00 | 1700.19% | Higher amount recovered from disposal of fixed assets | | Cash Paid for Investments | 201,550,000.00 | 3,850,000.00 | 5135.06% | Increase in external investments and wealth management expenditures | | Net Cash Flow from Investing Activities | -236,937,840.09 | 178,913,371.49 | -232.43% | Decrease in cash recovered from disposal of financial assets held for trading and increase in external investment expenditures | | Cash Received from Borrowings | 202,331,488.84 | 389,721,556.25 | -48.08% | Decrease in bank loans received | | Cash Paid for Debt Repayment | 277,454,241.92 | 541,580,000.00 | -48.77% | Proactive reduction in bank loans, leading to a corresponding decrease in repayments | | Net Cash Flow from Financing Activities | -81,420,050.18 | -162,849,076.19 | 50.00% | Significant decrease in cash paid for debt repayment compared to the prior period | | Net Increase in Cash and Cash Equivalents | -377,767,932.87 | -13,250,830.75 | -2750.90% | Decrease in net cash flow from operating and investing activities |[13](index=13&type=chunk)[14](index=14&type=chunk) [Shareholder Information](index=6&type=section&id=Item%20II.%20Shareholder%20Information) This section details the company's shareholder structure, including common and preferred shareholders, and changes in restricted shareholdings [Total Number of Common Shareholders and Top Ten Shareholders' Shareholding](index=6&type=section&id=Item%20(I)%20Total%20Number%20of%20Common%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Shareholding) As of the reporting period end, the company had 54,141 common shareholders, with Meng Xianmin as the largest shareholder whose holdings are largely pledged and frozen - Total number of common shareholders at the end of the reporting period: **54,141** households[15](index=15&type=chunk) Top 10 Shareholders' Shareholding | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Pledged, Marked, or Frozen Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Meng Xianmin | Domestic Natural Person | 15.84% | 96,161,704 | 79,747,174 | Pledged: 85,682,562 shares; Frozen: 96,161,704 shares | | Wang Bing | Domestic Natural Person | 3.36% | 20,411,166 | 20,411,166 | Pledged: 20,000,000 shares |[15](index=15&type=chunk) - Among the top 10 unrestricted shareholders, Meng Xianmin holds **16,414,530** unrestricted tradable shares[16](index=16&type=chunk) - There are no related party relationships or concerted action relationships among the top 10 shareholders[16](index=16&type=chunk) [Preferred Shareholder Information](index=7&type=section&id=Item%20(II)%20Total%20Number%20of%20Preferred%20Shareholders%20and%20Top%2010%20Preferred%20Shareholders'%20Shareholding) The company has no preferred shareholders - The company has no preferred shareholders[17](index=17&type=chunk) [Changes in Restricted Shares](index=7&type=section&id=Item%20(III)%20Changes%20in%20Restricted%20Shares) During the reporting period, the company's total restricted shares slightly decreased, with executive Wang Bing's restricted shares increasing due to executive lock-up rules and Fu Wei's decreasing due to partial release Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released This Period (shares) | Restricted Shares Increased This Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Bing | 20,408,374 | 0 | 2,792 | 20,411,166 | Executive Restricted Shares | | Fu Wei | 121,875 | 30,469 | 0 | 91,406 | Executive Restricted Shares | | **Total** | **20,530,249** | **30,469** | **2,792** | **20,502,572** | |[18](index=18&type=chunk) [Other Significant Matters](index=7&type=section&id=Item%20III.%20Other%20Significant%20Matters) This section covers significant corporate events, including changes in leadership and adjustments to share repurchase plans [Resignation and Re-election of Chairman](index=7&type=section&id=Item%201.%20Resignation%20and%20Re-election%20of%20Chairman) On July 11, 2022, the company's board of directors and supervisory board approved the proposal for the re-election of the Seventh Board of Directors' Chairman - On July 11, 2022, the company's board of directors and supervisory board approved the "Proposal on the Re-election of the Chairman of the Seventh Board of Directors"[20](index=20&type=chunk) [Change in Purpose and Cancellation of Repurchased Shares](index=8&type=section&id=Item%202.%20Change%20in%20Purpose%20and%20Cancellation%20of%20Repurchased%20Shares) Given the impending expiration of repurchased but unused shares, the company decided to change the purpose from equity incentives to cancellation to reduce registered capital, with the cancellation completed on October 11, 2022 - On July 11, 2022, the company's board of directors approved the "Proposal on Changing the Purpose and Cancellation of Repurchased Shares," changing the purpose from "entirely for future equity incentive plans" to "entirely for cancellation to reduce registered capital"[20](index=20&type=chunk) - On August 12, 2022, the company's general meeting of shareholders approved the proposal[20](index=20&type=chunk) - The share cancellation procedures were completed on October 11, 2022, at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited[20](index=20&type=chunk) [Quarterly Financial Statements](index=8&type=section&id=Item%20IV.%20Quarterly%20Financial%20Statements) This section presents the company's unaudited consolidated quarterly financial statements, including the balance sheet, income statement, and cash flow statement [Financial Statements](index=8&type=section&id=Item%20(I)%20Financial%20Statements) This section presents the company's consolidated balance sheet as of September 30, 2022, and consolidated income and cash flow statements for the year-to-date period, comprehensively detailing its financial position, operating results, and cash flows [Consolidated Balance Sheet](index=8&type=section&id=Item%201.%20Consolidated%20Balance%20Sheet) This section presents the company's consolidated balance sheet, offering a snapshot of its assets, liabilities, and equity as of the reporting date Consolidated Balance Sheet (Summary) | Item | Sep 30, 2022 (CNY) | Jan 1, 2022 (CNY) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 261,719,770.42 | 693,179,537.79 | | Financial Assets Held for Trading | 251,834,000.00 | 181,834,000.00 | | Accounts Receivable | 76,848,294.30 | 130,706,290.14 | | Prepayments | 68,504,264.31 | 28,633,800.42 | | Inventories | 405,917,004.51 | 382,873,924.45 | | Total Current Assets | 1,149,669,571.76 | 1,501,250,001.30 | | Long-Term Equity Investments | 244,804,996.76 | 214,547,607.23 | | Investments in Other Equity Instruments | 213,017,435.76 | 116,267,435.76 | | Right-of-Use Assets | 19,730,379.29 | 3,832,920.64 | | Intangible Assets | 142,110,766.80 | 177,347,018.76 | | Development Expenditures | 17,992,642.12 | 6,020,087.83 | | Total Non-Current Assets | 1,193,851,480.14 | 1,063,611,336.77 | | **Total Assets** | **2,343,521,051.90** | **2,564,861,338.07** | | Short-Term Borrowings | 155,474,686.94 | 229,249,274.79 | | Contract Liabilities | 13,281,969.61 | 11,468,408.70 | | Taxes Payable | 2,496,893.41 | 9,578,239.52 | | Total Current Liabilities | 262,912,743.92 | 346,565,702.53 | | Lease Liabilities | 13,135,841.07 | 2,382,845.63 | | Provisions | 4,338,981.65 | 20,608,200.00 | | Total Non-Current Liabilities | 36,635,023.56 | 44,776,246.47 | | **Total Liabilities** | **299,547,767.48** | **391,341,949.00** | | Share Capital | 607,115,817.00 | 611,510,817.00 | | Capital Reserve | 2,224,302,999.51 | 2,132,129,334.53 | | Less: Treasury Shares | 21,040,477.90 | 48,728,977.90 | | Retained Earnings | -626,893,276.66 | -501,773,485.40 | | Total Equity Attributable to Parent Company Shareholders | 2,161,429,658.42 | 2,168,887,410.73 | | Minority Interests | -117,456,374.00 | 4,631,978.34 | | **Total Equity** | **2,043,973,284.42** | **2,173,519,389.07** | | **Total Liabilities and Equity** | **2,343,521,051.90** | **2,564,861,338.07** |[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) [Consolidated Income Statement (Year-to-Date)](index=10&type=section&id=Item%202.%20Consolidated%20Income%20Statement%20(Year-to-Date)) This section provides the company's consolidated income statement, detailing revenues, expenses, and net profit for the year-to-date period Major Consolidated Income Statement Data (Year-to-Date) | Item | Amount for Current Period (Jan-Sep 2022, CNY) | Amount for Prior Period (Jan-Sep 2021, CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 205,859,527.64 | 391,141,971.92 | | Operating Cost | 150,939,674.67 | 264,291,786.62 | | Selling Expenses | 73,069,741.32 | 55,646,156.05 | | Administrative Expenses | 57,933,422.52 | 42,355,084.91 | | Research and Development Expenses | 37,672,179.24 | 45,062,215.96 | | Financial Expenses | 1,115,491.18 | 6,520,201.68 | | Investment Income | 2,406,471.00 | 9,788,230.03 | | Gains from Changes in Fair Value | 0 | 50,881,689.37 | | Credit Impairment Losses | -20,206,486.83 | -15,931,683.78 | | Asset Impairment Losses | -1,064,193.39 | -599,516.73 | | Operating Profit (Loss indicated by "-") | -129,111,229.30 | 25,131,983.97 | | Total Profit (Total Loss indicated by "-") | -131,109,285.20 | 24,831,662.03 | | Net Profit (Net Loss indicated by "-") | -132,418,979.44 | 25,968,812.56 | | Net Profit Attributable to Parent Company Shareholders | -125,119,791.26 | 22,942,405.93 | | Minority Interest Income/Loss | -7,299,188.18 | 3,026,406.63 | | Basic Earnings Per Share (CNY/share) | -0.2069 | 0.0439 |[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [Consolidated Cash Flow Statement (Year-to-Date)](index=12&type=section&id=Item%203.%20Consolidated%20Cash%20Flow%20Statement%20(Year-to-Date)) This section presents the company's consolidated cash flow statement, outlining cash inflows and outflows from operating, investing, and financing activities for the year-to-date period Major Consolidated Cash Flow Statement Data (Year-to-Date) | Item | Amount for Current Period (Jan-Sep 2022, CNY) | Amount for Prior Period (Jan-Sep 2021, CNY) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 294,687,100.35 | 410,447,890.35 | | Subtotal of Cash Outflows from Operating Activities | 353,974,405.94 | 439,769,194.64 | | Net Cash Flow from Operating Activities | -59,287,305.59 | -29,321,304.29 | | Subtotal of Cash Inflows from Investing Activities | 66,321,176.66 | 247,291,041.53 | | Subtotal of Cash Outflows from Investing Activities | 303,259,016.75 | 68,377,670.04 | | Net Cash Flow from Investing Activities | -236,937,840.09 | 178,913,371.49 | | Subtotal of Cash Inflows from Financing Activities | 202,331,488.84 | 389,721,556.25 | | Subtotal of Cash Outflows from Financing Activities | 283,751,539.02 | 552,570,632.44 | | Net Cash Flow from Financing Activities | -81,420,050.18 | -162,849,076.19 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -122,737.02 | 6,178.24 | | Net Increase in Cash and Cash Equivalents | -377,767,932.88 | -13,250,830.75 | | Cash and Cash Equivalents at Period-End | 223,100,381.52 | 57,155,943.86 |[27](index=27&type=chunk)[28](index=28&type=chunk) [Audit Report](index=13&type=section&id=Item%20(II)%20Audit%20Report) The company's Q3 2022 report is unaudited - The company's third-quarter report is unaudited[28](index=28&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2022 was ¥141,229,875.24, a decrease of 44.97% compared to ¥256,646,058.82 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was -¥85,320,105.40, representing a decline of 908.58% from ¥10,551,843.83 in the previous year[20]. - Basic and diluted earnings per share were both -¥0.1411, a decrease of 798.51% from ¥0.0202 in the previous year[20]. - The company achieved operating revenue of ¥141,229,875.24, a year-on-year decrease of 44.97%[45]. - The net profit attributable to shareholders, after deducting non-recurring gains and losses, was -¥90,972,658.45, a decline of 102.76% year-on-year[45]. - Revenue from digital creative products and services was ¥19,454,529.13, down 82.37% year-on-year, primarily due to project delays caused by the pandemic[45]. - Internet video application products and services generated revenue of ¥121,038,851.00, a decrease of 16.04% year-on-year, attributed to pandemic-related order and shipment controls[46]. - The company reported a total comprehensive income attributable to the parent company for the first half of 2022 was CNY -84,542,090.15, compared to CNY 9,775,258.18 in the previous year, indicating a substantial drop in profitability[198]. Cash Flow and Assets - The net cash flow from operating activities improved by 30.77%, amounting to -¥39,697,763.03 compared to -¥57,340,875.08 in the same period last year[20]. - Total assets at the end of the reporting period were ¥2,447,776,094.67, down 4.56% from ¥2,564,861,338.07 at the end of the previous year[20]. - The total monetary funds decreased by 11.10% to CNY 389,863,584.59, primarily due to operational expenditures and investments in financial products[74]. - The company reported a decrease in cash and cash equivalents from approximately CNY 693.18 million at the beginning of the year to CNY 389.86 million by June 30, 2022, a decline of about 44%[189]. - The company's total assets decreased from approximately CNY 2.56 billion at the beginning of the year to CNY 2.45 billion by June 30, 2022, a reduction of about 4.4%[190]. Investment and Development - The company plans to launch multiple new products in the second half of the year to improve profitability and competitiveness[46]. - The company signed a partnership agreement with Beijing Hetu Innovation Technology Co., Ltd. to enhance market expansion in digital product applications[47]. - A framework agreement was signed with Huawei Cloud to collaborate on various digital content and technology projects[47]. - The company has developed a complete VR interactive creation system and possesses high-quality R&D capabilities in VR and CG products, enhancing its production efficiency and expanding application areas[52]. - The company is focusing on expanding sales channels and product offerings in response to the ongoing pandemic challenges[45]. Strategic Initiatives - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments, highlighting investment risks[3]. - The company has established a comprehensive service matrix in new cultural tourism and entertainment sectors, offering one-stop services from top-level design to project management[39]. - The company is exploring operational directions for its LBE model, aiming to replicate successful projects and expand its service offerings in the cultural and entertainment sectors[39]. - The company aims to strengthen its team and implement a comprehensive incentive mechanism to achieve its market expansion goals[104]. - The company is actively seeking to adjust its industrial structure in response to market uncertainties and regulatory changes in the K12 education sector[104]. Challenges and Risks - The company faced risks and challenges as detailed in the management discussion and analysis section, which investors should be aware of[3]. - The company has identified risks related to industry development and macroeconomic factors, including potential impacts from government budget cuts and ongoing pandemic effects[104]. - The company has reported a credit impairment loss of CNY 14,708,285.86, an increase of 17.47%[73]. - The company has faced significant challenges in market expansion for its "Stai Classmate" and VR Future Classroom products due to ongoing pandemic risks[106]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[4]. - The company issued 82,352,941 shares to 20 specific investors, increasing total shares from 529,157,876 to 611,510,817[158]. - The company’s total share capital after the issuance was 611,510,817 shares, with 99% held by domestic investors[164]. - The company’s stock was listed on December 10, 2021, following the approval of the stock issuance[158]. - The company has maintained compliance with regulatory requirements regarding the use of raised funds[160]. Social Responsibility - The company emphasizes its commitment to social responsibility and aims to promote harmonious development with society under its corporate vision of "Digital Creativity, Beautiful Life"[125]. - 恒信东方积极践行社会责任，持续开展公益活动，支持特殊人群成长[128]. - 公司在2022年与河南省儿童希望救助基金会等机构合作，帮助脑瘫儿童和心智障碍青年学生[128].