恒信东方文化股份有限公司 2020 年第一季度报告全文 恒信东方文化股份有限公司 2020 年第一季度报告 2020-031 2020 年 04 月 1 恒信东方文化股份有限公司 2020 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。 公司负责人孟宪民、主管会计工作负责人王林海及会计机构负责人(会计主 管人员)王林海声明：保证季度报告中财务报表的真实、准确、完整。 2 恒信东方文化股份有限公司 2020 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 公司是否需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 | | --- | --- | --- | --- | | | | | 减 | | 营业总收入（元） | 105,542,345.82 | 137,745,554.13 | -23.38% | | 归属于上市公司股东的净利润（元） | - ...

恒信东方文化股份有限公司 2019 年第三季度报告全文 恒信东方文化股份有限公司 2019 年第三季度报告 2019-094 2019 年 10 月 1 恒信东方文化股份有限公司 2019 年第三季度报告全文 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。 公司负责人孟宪民、主管会计工作负责人王林海及会计机构负责人(会计主 管人员)李玫声明：保证季度报告中财务报表的真实、准确、完整。 2 恒信东方文化股份有限公司 2019 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 对公司根据《公开发行证券的公司信息披露解释性公告第 1 号——非经常性损益》定义界定的非经常性损益项目，以及把《公 开发行证券的公司信息披露解释性公告第 1 号——非经常性损益》中列举的非经常性损益项目界定为经常性损益的项目，应 说明原因 □ 适用 √ 不适用 公司报告期不存在将根据《公开发行证券 ...

2019 年半年度报告 2019 年 08 月 1 恒信东方文化股份有限公司 2019 年半年度报告全文 恒信东方文化股份有限公司 2019 年半年度报告全文 恒信东方文化股份有限公司 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、误导性陈述或者重大遗漏，并承担个别 和连带的法律责任。 公司负责人孟宪民、主管会计工作负责人王林海及会计机构负责人(会计主 管人员)李玫声明：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。 本报告中所涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者 的实质承诺，投资者及相关人士均应当对此保持足够的风险认识，并且应当理 解计划、预测与承诺之间的差异，注意投资风险。 2 第一节 重要提示、目录和释义 公司存在 VR 行业发展不及预期风险、全资子公司安徽赛达无法如期完成 业绩承诺的风险、并购和业务整合的风险、募集资金投资项目风险、合家欢体 验中心市场拓展未达预期的风险，敬请广大投资者注意投资风险。公司在本报 告第四节"经营情况讨论与分析"中的"公司面临的风险和应对措施"详细描述了 公司 ...

恒信东方文化股份有限公司 2019 年第一季度报告全文 恒信东方文化股份有限公司 2019 年第一季度报告 第二节 公司基本情况 2019-038 2019 年 04 月 1 恒信东方文化股份有限公司 2019 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。 公司负责人孟宪民、主管会计工作负责人陈伟及会计机构负责人（会计主 管人员）王林海声明：保证季度报告中财务报表的真实、准确、完整。 2 恒信东方文化股份有限公司 2019 年第一季度报告全文 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 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 137,745,554.13 | 158,720,042.31 | -13.21% | | 归属于上市公司股东的净利润（元） | 13,919,558.80 ...

恒信东方文化股份有限公司 2018 年年度报告全文 恒信东方文化股份有限公司 1 恒信东方文化股份有限公司 2018 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。 公司负责人孟宪民、主管会计工作负责人陈伟及会计机构负责人(会计主管 人员)王林海声明：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。 本报告中所涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者 的实质承诺，投资者及相关人士均应当对此保持足够的风险认识，并且应当理 解计划、预测与承诺之间的差异，注意投资风险。 公司存在 VR 行业发展不及预期风险、全资子公司安徽赛达无法如期完成 业绩承诺的风险、并购和业务整合的风险、募集资金投资项目风险、合家欢体 验中心市场拓展未达预期的风险，敬请广大投资者注意投资风险。公司在本报 告第四节"经营情况讨论与分析"中的"公司未来发展的展望"部分，详细描 述了公司经营中可能存在的风险及应对措施，敬请投资者关注相关内容。 公司经 ...

2018 年第三季度报告 2018 年 10 月 1 恒信东方文化股份有限公司 2018 年第三季度报告全文 第一节 重要提示 恒信东方文化股份有限公司 2018 年第三季度报告全文 恒信东方文化股份有限公司 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。 公司负责人孟宪民、主管会计工作负责人陈伟及会计机构负责人（会计主管人员）王林 海声明：保证季度报告中财务报表的真实、准确、完整。 2 恒信东方文化股份有限公司 2018 年第三季度报告全文 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） | 2,755,270,316.16 | 2,361,675,636.33 | | 16.67% | | 归属于上市公司股东的净资产 | 2,443,077,529 ...

Section I Important Notice [Important Notice Statement](index=2&type=section&id=Important%20Notice%20Statement) The Board of Directors, Supervisory Board, and senior management affirm the quarterly report's truthfulness, accuracy, and completeness, assuming legal responsibility - The Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[3](index=3&type=chunk) - Company's principal, Meng Xianmin, chief financial officer, Chen Wei, and head of accounting department, Wang Linhai, declare that the financial statements in the quarterly report are true, accurate, and complete[4](index=4&type=chunk) Section II Company Profile [I. Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Total assets and net assets attributable to shareholders increased, with significant growth in revenue and net profit, largely due to investment income from the acquisition of Anhui Saida Key Accounting Data and Financial Indicators | Indicator | Period-End/Year-to-Date (CNY) | Prior Year-End/Prior Year-to-Date (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | **Balance Sheet (Period-End):** | | | | | Total Assets | 2,755,270,316.16 | 2,361,675,636.33 | 16.67% | | Net Assets Attributable to Listed Company Shareholders | 2,443,077,529.02 | 2,256,213,858.46 | 8.28% | | **Income Statement (Year-to-Date):** | | | | | Operating Revenue | 484,916,388.68 | 284,928,578.80 | 70.19% | | Net Profit Attributable to Listed Company Shareholders | 206,112,356.43 | 78,687,479.73 | 161.94% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Items) | 103,764,428.81 | 32,300,000.00 (Estimated) | 221.18% | | Net Cash Flow from Operating Activities | -86,467,470.55 | -59,154,991.60 | -46.17% | | Basic Earnings Per Share (CNY/share) | 0.39 | 0.16 | 143.75% | | Weighted Average Return on Net Assets | 8.76% | 4.34% (Estimated) | 4.42% | Non-Recurring Gains and Losses from Year-Beginning to Period-End | Item | Year-to-Date Amount (CNY) | Explanation | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -200,910.99 | | | Government Grants Recognized in Current Profit/Loss | 2,214,160.25 | Primarily tax refunds and Guangzhou service trade demonstration subsidies | | Enterprise Restructuring Expenses | -14,850,857.39 | Primarily resettlement expenses and cleanup losses | | Other Non-Operating Income and Expenses | -72,283.46 | Primarily liquidated damages expenses | | Other Non-Recurring Gains and Losses | 115,658,318.56 | Primarily investment income from the re-measurement of the original long-term equity investment's fair value due to the non-same-control acquisition of Anhui Saida | | Less: Income Tax Impact | 384,058.63 | | | Minority Interest Impact (After Tax) | 16,440.72 | | | Total | 102,347,927.62 | -- | [II. Total Shareholders at Period End and Top Ten Shareholders' Holdings](index=4&type=section&id=II.%20Total%20Shareholders%20at%20Period%20End%20and%20Top%20Ten%20Shareholders'%20Holdings) As of the period end, the company had 529,657,876 common shares, with the largest shareholder, Meng Xianmin, holding 27.43% of shares, mostly pledged - The total number of common shareholders at the end of the reporting period was **529,657,876 shares**, with no preferred shareholders whose voting rights have been restored[11](index=11&type=chunk) Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Pledge or Freeze Status (Status/Number of Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Meng Xianmin | Domestic Natural Person | 27.43% | 145,272,966 | 108,954,724 | Pledged 89,130,000 | | Wang Bing | Domestic Natural Person | 6.85% | 36,278,366 | 36,278,366 | Pledged 27,950,000 | | Pei Jun | Domestic Natural Person | 3.53% | 18,670,810 | 14,003,107 | Pledged 6,060,000 | | China Merchants Bank Co., Ltd. - Jiutai Jiuli Flexible Allocation Mixed Securities Investment Fund | Other | 3.37% | 17,826,086 | 0 | | | Xiamen Rongxinbo Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 3.17% | 16,776,123 | 16,776,123 | Pledged 6,070,200 | | Shenyang Zhengli Investment Co., Ltd. | State-Owned Legal Person | 2.69% | 14,255,167 | 0 | | | Ningbo Meishan Bonded Port Area Dongli Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.66% | 14,112,615 | 0 | | | Golden Eagle Fund - ICBC - Wanxiang Trust - Wanxiang Trust - Xingchen No. 50 Single Fund Trust for Business Management | Other | 2.33% | 12,323,595 | 0 | | | Zhou Jie | Domestic Natural Person | 1.99% | 10,525,030 | 0 | | | Industrial and Commercial Bank of China Co., Ltd. - CCB Preferred Growth Mixed Securities Investment Fund | Other | 1.55% | 8,220,213 | 0 | | - The company's top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[12](index=12&type=chunk) [III. Changes in Restricted Shares](index=6&type=section&id=III.%20Changes%20in%20Restricted%20Shares) During the period, several institutional shareholders' non-publicly issued shares became unrestricted, totaling 71,233,934 shares, while a former executive's restricted shares increased due to resignation Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period Beginning (shares) | Shares Unrestricted This Period (shares) | Shares Added to Restriction This Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | Proposed Unrestriction Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Caitong Fund Management Co., Ltd. | 12,045,616 | 12,045,616 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Golden Eagle Fund Management Co., Ltd. | 12,323,595 | 12,323,595 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Shenyang Zhengli Investment Co., Ltd. | 14,255,167 | 14,255,167 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Jiutai Fund Management Co., Ltd. | 17,826,086 | 17,826,086 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Ningbo Meishan Bonded Port Area Dongli Investment | 14,112,615 | 14,112,615 | 0 | 0 | Non-public issuance shares restricted for one year | April 24, 2018 | | Duan Zhaodong | 2,012,561 | 670,855 | 670,855 | 2,012,561 | Executive resignation | August 1, 2018 | | Total | 72,575,640 | 71,233,934 | 670,855 | 2,012,561 | -- | -- | Section III Significant Events [I. Significant Changes and Reasons in Key Financial Data and Indicators for the Reporting Period](index=7&type=section&id=I.%20Significant%20Changes%20and%20Reasons%20in%20Key%20Financial%20Data%20and%20Indicators%20for%20the%20Reporting%20Period) Multiple balance sheet, income statement, and cash flow items experienced significant changes due to acquisitions, business expansion, and shifts in funding strategies [1. Significant Changes and Reasons in Balance Sheet Items](index=7&type=section&id=1.%20Significant%20Changes%20and%20Reasons%20in%20Balance%20Sheet%20Items) Key balance sheet items, including cash, receivables, inventory, and goodwill, saw substantial changes driven by investment activities, acquisitions, and business growth Significant Changes in Balance Sheet Items | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 716,251,636.26 | 1,241,160,676.40 | -42.29% | Primarily due to significant investment expenditures in the current reporting period | | Notes and Accounts Receivable | 325,225,650.92 | 111,126,228.12 | 192.66% | Primarily due to a significant increase in accounts receivable from the non-same-control acquisition of Anhui Saida, and an increase in accounts receivable as the business scale of wholly-owned subsidiary Oriental DreamWorks Cultural Industry Investment Co., Ltd. expanded | | Prepayments | 99,107,701.71 | 49,277,742.49 | 101.12% | Primarily due to the expansion of Oriental DreamWorks and its subsidiaries' business scale, leading to increased operating costs and prepayments due to delayed invoice settlement | | Other Receivables | 44,536,947.08 | 98,384,157.75 | -54.73% | Primarily due to the recovery of performance compensation from Zhou Jie, the original shareholder of Anhui Saida Technology Co., Ltd. in the current period | | Inventories | 242,000,446.29 | 137,198,861.46 | 76.39% | Primarily due to a significant increase in inventories from the non-same-control acquisition of Anhui Saida in the current reporting period, and a corresponding increase in inventories with the development of the company's business scale | | Other Current Assets | 14,919,050.16 | 7,217,939.25 | 106.69% | Primarily due to Oriental DreamWorks, Beijing Huakai Film and Television Production Co., Ltd., and Hengxin Oriental Children (Guangzhou) Cultural Industry Development Co., Ltd. being recognized as animation enterprises in 2017, allowing them to enjoy corporate income tax exemption under animation enterprise tax preferential policies, leading to the reversal of corporate income tax provisioned in 2017 | | Available-for-Sale Financial Assets | 207,432,967.28 | 109,496,620.28 | 89.44% | Primarily due to increased external investments by the company in the current reporting period | | Intangible Assets | 53,593,572.92 | 39,574,635.88 | 35.42% | Primarily due to the purchase of a significant amount of copyrights in the current reporting period, increasing intangible assets | | Development Expenditures | 35,073,890.90 | 7,391,454.14 | 374.52% | Primarily due to increased R&D investment in the company's fundraising projects - "VR Film and Television Promotion Platform" and "Family Entertainment Platform" in the current reporting period | | Goodwill | 470,632,207.59 | 35,317,662.58 | 1,232.57% | Primarily due to significant goodwill generated from the non-same-control acquisitions of Anhui Saida and Hangzhou Xiayi Cultural Creative Co., Ltd. in the current reporting period | | Long-Term Deferred Expenses | 58,741,423.36 | 40,248,073.25 | 45.95% | Primarily due to a significant increase in long-term deferred expenses from the non-same-control acquisition of Anhui Saida in the current reporting period, and increased long-term deferred expenses from new children's venue renovations | | Other Non-Current Assets | 30,000,000.00 | - | 100% | Primarily due to the equity investment in Zhongke Beiying (Beijing) Technology Media Co., Ltd. not yet completing industrial and commercial change procedures, temporarily listed under other non-current assets | | Short-Term Borrowings | 179,450,000.00 | 30,000,000.00 | 498.17% | Primarily due to the company increasing short-term loans based on funding arrangements | | Notes and Accounts Payable | 82,717,745.66 | 33,620,025.88 | 146.04% | Primarily due to the expansion of Oriental DreamWorks' business scale, leading to a corresponding increase in accounts payable | | Advances from Customers | 9,452,469.41 | 5,359,207.42 | 76.38% | Primarily due to the increased business scale of wholly-owned sub-subsidiary Hengxin Oriental Children, leading to a corresponding increase in advances from customers | | Taxes Payable | 10,331,707.18 | 16,010,356.15 | -35.47% | Primarily due to Oriental DreamWorks, Huakai Film and Television, and Hengxin Oriental Children being recognized as animation enterprises in 2017, allowing them to enjoy corporate income tax exemption under animation enterprise tax preferential policies, leading to the reversal of corporate income tax provisioned in 2017 | | Deferred Income | - | 58,333.21 | -100.00% | Primarily due to deferred income being transferred to current profit/loss periodically in accordance with Accounting Standards for Business Enterprises | | Minority Interests | 18,602,698.36 | 8,301,092.42 | 124.10% | Primarily due to minority shareholder contributions and increased minority interests from the non-same-control acquisition of Xiayi Culture in the current reporting period | [2. Significant Changes and Reasons in Income Statement Items](index=8&type=section&id=2.%20Significant%20Changes%20and%20Reasons%20in%20Income%20Statement%20Items) Operating revenue, cost, and investment income significantly increased, primarily due to business growth and the acquisition of Anhui Saida, while asset impairment losses decreased Significant Changes in Income Statement Items (Jan-Sep 2018 vs Jan-Sep 2017) | Item | Jan-Sep 2018 (CNY) | Jan-Sep 2017 (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 484,916,388.68 | 284,928,578.80 | 70.19% | Primarily due to the continued growth of Oriental DreamWorks' business in the current reporting period, and increased operating revenue from the non-same-control acquisition of Anhui Saida | | Operating Cost | 298,287,476.49 | 161,341,576.94 | 84.88% | Primarily due to the continued growth of Oriental DreamWorks' business in the current reporting period, leading to a corresponding increase in costs with revenue growth, and increased operating costs from the non-same-control acquisition of Anhui Saida | | Administrative Expenses | 73,451,128.32 | 46,635,232.02 | 57.50% | Primarily due to increased recognition of share-based payment expenses and employee severance compensation in the current period compared to the prior year | | Financial Expenses | -6,015,395.67 | -4,089,615.15 | 47.09% | Primarily due to increased interest income in the current reporting period compared to the prior year | | Asset Impairment Losses | 183,954.41 | 7,635,859.02 | -97.59% | Primarily due to a shortened overall aging of accounts and inventory in the current reporting period, leading to a significant decrease in asset impairment losses | | Other Income | 2,687,927.43 | 1,615,299.22 | 66.40% | Primarily due to increased software tax refunds from the non-same-control acquisition of Anhui Saida in the current reporting period compared to the prior year | | Investment Income | 130,115,669.70 | 80,808,361.54 | 61.02% | Primarily due to significant investment income generated from the re-measurement of the original equity's fair value during the non-same-control acquisition of Anhui Saida in the current reporting period | | Gains/Losses on Asset Disposal | -200,910.99 | -5,465,561.57 | -96.32% | Primarily due to the disposal of a batch of intangible assets related to businesses planned for contraction in the prior period | | Non-Operating Income | 3,154,368.06 | 319,232.11 | 888.11% | Primarily due to the non-same-control acquisition of Anhui Saida in the current period, which had a higher amount of tax refunds | | Non-Operating Expenses | 451,923.59 | 4,933,302.00 | -90.84% | Primarily due to monetary and inventory donations for public welfare in the prior period | | Income Tax Expense | 4,099,457.71 | 12,920,493.02 | -68.27% | Primarily due to Oriental DreamWorks, Huakai Film and Television, and Hengxin Oriental Children being recognized as animation enterprises in 2017, allowing them to enjoy corporate income tax exemption under animation enterprise tax preferential policies, leading to the reversal of corporate income tax provisioned in 2017 | [3. Significant Changes and Reasons in Cash Flow Statement Items](index=9&type=section&id=3.%20Significant%20Changes%20and%20Reasons%20in%20Cash%20Flow%20Statement%20Items) Operating cash outflow increased due to business expansion and longer collection cycles, while investment cash outflow surged from acquisitions and increased financial investments Significant Changes in Cash Flow Statement Items (Jan-Sep 2018 vs Jan-Sep 2017) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Cash Received from Sales of Goods and Services | 392,567,742.96 | 263,775,047.23 | 48.83% | Primarily due to the expansion of the company's business scale, cash received from sales of goods and services increased correspondingly with the increase in revenue compared to the prior year | | Cash Received from Interest, Fees, and Commissions | 16,729,375.65 | 10,735,764.12 | 55.83% | Primarily due to increased interest income from the company's pawn business in the current reporting period | | Tax Refunds Received | 8,671,816.75 | 2,070,128.21 | 318.90% | Primarily due to increased software tax refunds and other tax refunds from the newly acquired subsidiary Anhui Saida in the current period | | Other Cash Received Related to Operating Activities | 184,740,228.19 | 335,181,936.89 | -44.88% | Primarily due to a decrease in "real-time deduction" business in traditional operations during the reporting period | | Cash Paid for Goods and Services | 402,361,312.06 | 208,745,280.83 | 92.75% | Primarily due to the expansion of the company's business scale, cash paid for purchases increased correspondingly with the increase in cash received from sales compared to the prior year | | Taxes Paid | 34,091,224.07 | 25,054,675.82 | 36.07% | Primarily due to the expansion of the company's business scale, leading to a corresponding increase in taxes paid | | Other Cash Paid Related to Operating Activities | 164,006,610.10 | 366,710,424.77 | -55.28% | Primarily due to a decrease in "real-time deduction" business in traditional operations during the reporting period | | Net Cash Flow from Operating Activities | -86,467,470.55 | -59,154,991.60 | -46.17% | Primarily due to: 1. Significant changes in the company's business structure compared to the prior period, with a continuous decrease in revenue from mobile information sales and services to individual cash-and-carry customers, and a gradual increase in revenue from industry clients, extending the sales collection cycle; 2. With the continuous expansion of revenue scale in the reporting period, cash paid for goods and services increased significantly compared to the prior year, thus leading to a decrease in net cash flow from operating activities compared to the prior year | | Cash Received from Disposal of Investments | 709,280,000.00 | 55,965,870.00 | 1,167.34% | Primarily due to increased recovery of wealth management products in the current reporting period | | Cash Received from Investment Income | 6,425,809.52 | 4,310,356.19 | 49.08% | Primarily due to increased investment income from wealth management products compared to the prior period | | Net Cash Received from Disposal of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 57,552.73 | 780,409.46 | -92.63% | Primarily due to more fixed assets and intangible assets disposed of in the prior period, resulting in higher cash receipts | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 76,014,270.71 | 15,060,378.43 | 404.73% | Primarily due to increased investment in long-term assets such as copyright purchases and construction in progress in the current reporting period | | Cash Paid for Investments | 959,057,288.57 | 107,000,000.00 | 796.32% | Primarily due to increased investment in wealth management products and significant investment payments for equity in Zishuiniao Image Limited Partnership, Zishuiniao Image General Partnership Co., Ltd., Zhongke Beiying, and other companies in the current reporting period | | Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 244,248,524.62 | 178,696.08 | 136,583.76% | Primarily due to investment payments for the non-same-control acquisition of Anhui Saida in the current reporting period | | Other Cash Paid Related to Investing Activities | 3,193,380.76 | 21,633.59 | 14,661.22% | Primarily due to monetary funds no longer consolidated upon disposal of part of the equity in sub-subsidiary Oriental DreamWorks (Chengdu) Cultural Arts Development Co., Ltd. | | Net Cash Flow from Investing Activities | -565,518,911.41 | -61,204,072.45 | 823.99% | Primarily due to significant investment in wealth management products, the non-same-control acquisition of Anhui Saida, and investment payments for equity in Zishuiniao Image Company, Zhongke Beiying, and other companies in the current reporting period | | Cash Received from Capital Contributions | 2,835,085.00 | 981,519,998.37 | -99.71% | Primarily due to the receipt of funds raised for major asset restructuring in the prior period | | Cash Received from Borrowings | 179,450,000.00 | 30,000,000.00 | 498.17% | Primarily due to increased short-term borrowings as the company adjusted its capital structure and increased funding needs in the current reporting period | | Cash Paid for Debt Repayment | 30,000,000.00 | 50,000,000.00 | -40.00% | Primarily due to a decrease in short-term debt repayment in the current reporting period compared to the prior year-beginning | | Cash Paid for Dividends, Profits, or Interest | 29,435,064.64 | 6,278,241.48 | 368.84% | Primarily due to increased dividend distribution in the current reporting period compared to the prior period | | Other Cash Paid Related to Financing Activities | 6,756,207.54 | 70,563.08 | 9,474.71% | Primarily due to the company's share repurchase in the current reporting period | | Net Cash Flow from Financing Activities | 116,093,812.82 | 955,171,193.81 | -87.85% | Primarily due to the receipt of funds raised for major asset restructuring in the prior period | [II. Progress, Impact, and Solutions for Significant Events](index=11&type=section&id=II.%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company completed the acquisition of Anhui Saida's remaining 49% equity, adjusted the use of raised funds for new acquisitions and IP, and approved a share repurchase plan - The company completed the acquisition of the remaining **49% equity** in Anhui Saida Technology Co., Ltd., with a total transaction consideration of **CNY 294 million**, adjusted to **CNY 248.5077 million** after deductions[24](index=24&type=chunk)[27](index=27&type=chunk) - The counterparty, Zhou Jie, fulfilled his commitment by using **CNY 120 million** of the transaction proceeds (after tax) to increase his holdings in the company's shares, acquiring **10,525,030 shares**, representing **1.99%** of the total share capital, with an investment of **CNY 120,096,125.17**[24](index=24&type=chunk)[27](index=27&type=chunk) - The company reallocated **CNY 101.5 million** from the original **CNY 131.5 million** designated for copyright film and television production to acquire and increase capital in Hangzhou Xiayi Cultural Creative Co., Ltd., and to purchase Jin Yong's literary copyrights for future development, production, and operation[25](index=25&type=chunk)[27](index=27&type=chunk) - As of the end of the reporting period, the company completed the acquisition and capital increase in Hangzhou Xiayi Cultural Creative Co., Ltd., holding a **51% equity stake**[25](index=25&type=chunk)[27](index=27&type=chunk) - The company approved a share repurchase plan, intending to use its own and self-raised funds to repurchase shares for future equity incentive plans or legal cancellation[26](index=26&type=chunk)[28](index=28&type=chunk) - The total repurchase amount will be between **CNY 150 million** and **CNY 200 million**, at a price not exceeding **CNY 12 per share**, with an implementation period of no more than **12 months**[26](index=26&type=chunk)[28](index=28&type=chunk) - A dedicated securities account for share repurchases has been opened[26](index=26&type=chunk)[28](index=28&type=chunk) [III. Overdue Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company](index=12&type=section&id=III.%20Overdue%20Unfulfilled%20Commitments%20by%20Controlling%20Shareholder%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company) No overdue unfulfilled commitments by the controlling shareholder, shareholders, related parties, acquirers, or the company were identified during the reporting period - The company had no overdue unfulfilled commitments from its controlling shareholder, shareholders, related parties, acquirers, or the company itself during the reporting period[29](index=29&type=chunk) [IV. Execution of Cash Dividend Policy During the Reporting Period](index=12&type=section&id=IV.%20Execution%20of%20Cash%20Dividend%20Policy%20During%20the%20Reporting%20Period) The company did not implement any cash dividend policy during the reporting period - The company had no execution of cash dividend policy during the reporting period[30](index=30&type=chunk) [V. Warning and Explanation for Potential Cumulative Net Profit Loss or Significant Change from Year-Ago Period](index=12&type=section&id=V.%20Warning%20and%20Explanation%20for%20Potential%20Cumulative%20Net%20Profit%20Loss%20or%20Significant%20Change%20from%20Year-Ago%20Period) The company did not issue any warning regarding potential cumulative net profit loss or significant changes for the period from year-beginning to the end of the next reporting period - The company did not issue any warning or explanation regarding a potential cumulative net profit loss or significant change compared to the prior year-ago period from year-beginning to the end of the next reporting period[30](index=30&type=chunk) [VI. Irregular External Guarantees](index=12&type=section&id=VI.%20Irregular%20External%20Guarantees) The company reported no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[30](index=30&type=chunk) [VII. Non-Operating Funds Occupied by Controlling Shareholder and Related Parties](index=12&type=section&id=VII.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholder%20and%20Related%20Parties) There were no instances of non-operating funds being occupied by the controlling shareholder or its related parties during the reporting period - The company had no non-operating funds occupied by the controlling shareholder or its related parties during the reporting period[31](index=31&type=chunk) Section IV Financial Statements [I. Financial Statements](index=13&type=section&id=I.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the reporting period, offering a comprehensive view of financial performance [1. Consolidated Balance Sheet](index=13&type=section&id=1.%20Consolidated%20Balance%20Sheet) This table presents the consolidated financial position of the company and its subsidiaries as of September 30, 2018, and the beginning of the year Consolidated Balance Sheet (September 30, 2018) | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Current Assets | 1,442,041,432.42 | 1,644,365,605.47 | | Total Non-Current Assets | 1,313,228,883.74 | 717,310,030.86 | | Total Assets | 2,755,270,316.16 | 2,361,675,636.33 | | Total Current Liabilities | 293,590,088.79 | 97,102,352.24 | | Total Non-Current Liabilities | - | 58,333.21 | | Total Liabilities | 293,590,088.79 | 97,160,685.45 | | Total Equity Attributable to Parent Company Shareholders | 2,443,077,529.02 | 2,256,213,858.46 | | Minority Interests | 18,602,698.35 | 8,301,092.42 | | Total Shareholders' Equity | 2,461,680,227.37 | 2,264,514,950.88 | | Total Liabilities and Shareholders' Equity | 2,755,270,316.16 | 2,361,675,636.33 | [2. Parent Company Balance Sheet](index=16&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) This table details the financial position of the parent company as of September 30, 2018, and the beginning of the year Parent Company Balance Sheet (September 30, 2018) | Item | Period-End Balance (CNY) | Year-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Current Assets | 902,436,212.29 | 1,295,750,393.98 | | Total Non-Current Assets | 1,474,213,792.33 | 983,022,362.21 | | Total Assets | 2,376,650,004.62 | 2,278,772,756.19 | | Total Current Liabilities | 225,610,676.33 | 113,175,039.69 | | Total Non-Current Liabilities | - | - | | Total Liabilities | 225,610,676.33 | 113,175,039.69 | | Total Shareholders' Equity | 2,151,039,328.29 | 2,165,597,716.50 | | Total Liabilities and Shareholders' Equity | 2,376,650,004.62 | 2,278,772,756.19 | [3. Consolidated Income Statement for the Current Period](index=18&type=section&id=3.%20Consolidated%20Income%20Statement%20for%20the%20Current%20Period) This table presents the consolidated financial performance of the company and its subsidiaries for the current reporting period Consolidated Income Statement for the Current Period (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 178,559,325.49 | 98,986,664.20 | | II. Total Operating Costs | 147,732,286.16 | 87,233,983.04 | | III. Operating Profit | 31,063,354.05 | 25,434,097.19 | | IV. Total Profit | 31,078,170.43 | 21,586,193.67 | | V. Net Profit | 20,065,952.50 | 15,559,068.88 | | Net Profit Attributable to Parent Company Shareholders | 18,367,567.32 | 17,371,341.80 | | Minority Interest Income/Loss | 1,698,385.18 | -1,812,272.92 | | VII. Total Comprehensive Income | 20,065,952.50 | 15,559,068.88 | | VIII. Earnings Per Share (Basic/Diluted) | 0.035 | 0.034 | [4. Parent Company Income Statement for the Current Period](index=20&type=section&id=4.%20Parent%20Company%20Income%20Statement%20for%20the%20Current%20Period) This table outlines the financial performance of the parent company for the current reporting period Parent Company Income Statement for the Current Period (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Operating Revenue | 16,564,393.63 | 29,133,638.04 | | II. Operating Profit | -12,997,686.71 | -4,212,890.50 | | III. Total Profit | -13,012,310.03 | -8,269,289.63 | | IV. Net Profit | -13,012,310.03 | -8,269,289.63 | | VI. Total Comprehensive Income | -13,012,310.03 | -8,269,289.63 | [5. Consolidated Income Statement from Year-Beginning to Period End](index=22&type=section&id=5.%20Consolidated%20Income%20Statement%20from%20Year-Beginning%20to%20Period%20End) This table presents the consolidated financial performance of the company and its subsidiaries from the beginning of the year to the end of the reporting period Consolidated Income Statement from Year-Beginning to Period End (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | 498,877,437.77 | 296,570,475.63 | | II. Total Operating Costs | 422,763,162.61 | 280,376,609.56 | | III. Operating Profit | 208,716,961.30 | 93,151,965.26 | | IV. Total Profit | 211,419,405.77 | 88,537,895.37 | | V. Net Profit | 207,319,948.06 | 75,617,402.35 | | Net Profit Attributable to Parent Company Shareholders | 206,112,356.43 | 78,687,479.73 | | Minority Interest Income/Loss | 1,207,591.63 | -3,070,077.38 | | VII. Total Comprehensive Income | 207,319,948.06 | 75,617,402.35 | | VIII. Earnings Per Share (Basic/Diluted) | 0.39 | 0.16 | [6. Parent Company Income Statement from Year-Beginning to Period End](index=24&type=section&id=6.%20Parent%20Company%20Income%20Statement%20from%20Year-Beginning%20to%20Period%20End) This table details the financial performance of the parent company from the beginning of the year to the end of the reporting period Parent Company Income Statement from Year-Beginning to Period End (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Operating Revenue | 106,340,807.73 | 118,223,154.23 | | II. Operating Profit | 4,532,742.95 | 24,088,053.94 | | III. Total Profit | 4,464,858.28 | 19,406,579.81 | | IV. Net Profit | 4,464,858.28 | 19,406,579.81 | | VI. Total Comprehensive Income | 4,464,858.28 | 19,406,579.81 | [7. Consolidated Cash Flow Statement from Year-Beginning to Period End](index=25&type=section&id=7.%20Consolidated%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Period%20End) This table presents the consolidated cash flow activities of the company and its subsidiaries from the beginning of the year to the end of the reporting period Consolidated Cash Flow Statement from Year-Beginning to Period End (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | -86,467,470.55 | -59,154,991.60 | | II. Net Cash Flow from Investing Activities | -565,518,911.41 | -61,204,072.45 | | III. Net Cash Flow from Financing Activities | 116,093,812.82 | 955,171,193.81 | | V. Net Increase in Cash and Cash Equivalents | -535,892,569.14 | 834,812,129.76 | | Add: Cash and Cash Equivalents at Year-Beginning | 1,211,160,676.40 | 292,469,421.36 | [8. Parent Company Cash Flow Statement from Year-Beginning to Period End](index=28&type=section&id=8.%20Parent%20Company%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Period%20End) This table outlines the cash flow activities of the parent company from the beginning of the year to the end of the reporting period Parent Company Cash Flow Statement from Year-Beginning to Period End (Current Period Amount) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | 197,438,143.14 | -722,551,665.42 | | II. Net Cash Flow from Investing Activities | -420,501,729.57 | -36,519,243.14 | | III. Net Cash Flow from Financing Activities | 83,881,227.82 | 950,271,193.81 | | V. Net Increase in Cash and Cash Equivalents | -139,182,358.61 | 191,200,285.25 | | VI. Cash and Cash Equivalents at Period End | 186,790,372.70 | 262,041,454.68 | [II. Audit Report](index=29&type=section&id=II.%20Audit%20Report) The company's third-quarter report for 2018 was not audited - The company's third-quarter report was unaudited[66](index=66&type=chunk)

[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) [Important Notes](index=2&type=section&id=Important%20Notes) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this semi-annual report, assuming legal responsibility, while future plans mentioned do not constitute substantive commitments, and investors are advised to note risks related to Anhui Saida's performance commitments, VR industry development, business integration, declining mobile information business, and fundraising projects - Company management guarantees the truthfulness, accuracy, and completeness of the report content and assumes corresponding legal responsibilities[3](index=3&type=chunk) - The report highlights major risks faced by the company, including: - Risk of wholly-owned subsidiary Anhui Saida failing to meet performance commitments - Risk of VR industry development falling short of expectations - Risks associated with acquisitions and business integration - Risk of continued decline in mobile information product sales and services - Risks related to fundraising investment projects[4](index=4&type=chunk) [Definitions](index=4&type=section&id=Definitions) This section defines key terms used in the report, covering the reporting period, company entities, and core business-related technical and commercial concepts such as CG, VR, AR, and LBE, providing a foundation for understanding the report's content Key Terms and Definitions | Term | Definition | | :--- | :--- | | Reporting Period | January 1, 2018 to June 30, 2018 | | VR | Virtual Reality | | LBE | Location Based Entertainment, venue-based entertainment experience | | IP | Intellectual Property | | Oriental Dream | Oriental Dream Cultural Industry Investment Co., Ltd., a wholly-owned subsidiary of the company | | Anhui Saida | Anhui Saida Technology Co., Ltd. | [Company Profile and Key Financial Indicators](index=5&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) [I. Company Profile](index=5&type=section&id=I.%20Company%20Profile) This section provides the company's basic information, including its stock abbreviation 'Hengxin Oriental', stock code '300081', full Chinese and English names, and legal representative Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Hengxin Oriental | | Stock Code | 300081 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | Hengxin Oriental Culture Co., Ltd. | | Company's Legal Representative | Meng Xianmin | [IV. Key Accounting Data and Financial Indicators](index=6&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company achieved significant performance growth with total operating revenue increasing by 62.12%, net profit attributable to shareholders surging by 206.19%, and non-recurring net profit rising by an impressive 359.61%, indicating strong core business profitability, while basic earnings per share grew by 169.23%, though net cash flow from operating activities decreased by 95.64%, warranting attention to its cash position Key Accounting Data and Financial Indicators | Indicator | Current Period | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue (CNY) | $320.32 million | $197.58 million | 62.12% | | Net Profit Attributable to Shareholders (CNY) | $187.74 million | $61.32 million | 206.19% | | Net Profit Excluding Non-Recurring Items (CNY) | $83.52 million | $18.17 million | 359.61% | | Net Cash Flow from Operating Activities (CNY) | -$25.83 million | -$13.20 million | -95.64% | | Basic Earnings Per Share (CNY/share) | $0.35 | $0.13 | 169.23% | | Weighted Average Return on Net Assets | 7.98% | 3.71% | 4.27% | | Total Assets (CNY) | $2.62 billion | $2.36 billion | 10.78% (Period-End vs. Prior Year-End) | | Net Assets Attributable to Shareholders (CNY) | $2.43 billion | $2.26 billion | 7.55% (Period-End vs. Prior Year-End) | [VI. Non-Recurring Gains and Losses](index=7&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses) During the reporting period, the company's non-recurring gains and losses totaled $104.23 million, significantly impacting net profit, primarily due to a $115.66 million investment gain from remeasuring the original long-term equity investment at fair value upon non-same-control business combination with Anhui Saida - Non-recurring gains and losses totaled **$104.23 million**, primarily from investment income generated by the non-same-control business combination with Anhui Saida[22](index=22&type=chunk) Non-Recurring Gains and Losses Items and Amounts | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Other gains and losses items conforming to the definition of non-recurring gains and losses | $115.66 million | Primarily investment income from remeasuring original long-term equity investment at fair value due to non-same-control business combination with Anhui Saida | | Enterprise restructuring expenses | -$12.97 million | Mainly resettlement expenses and liquidation losses | | Government subsidies | $2.21 million | Mainly tax refunds and Guangzhou service trade demonstration subsidies | [Business Overview](index=8&type=section&id=Business%20Overview) [I. Principal Activities During the Reporting Period](index=8&type=section&id=I.%20Principal%20Activities%20During%20the%20Reporting%20Period) During the reporting period, the company focused on the digital creative industry with 'artistic creativity + visual technology' at its core, encompassing CG/VR content production, children's industry chain development and operation, LBE urban new entertainment, internet video applications and services, while strategically reducing traditional mobile information product sales, with performance growth primarily driven by the three emerging businesses and significant investment income from the 100% acquisition of Anhui Saida - The company's business scope primarily includes five major segments: - CG/VR content production - Children's industry chain development and operation - LBE (Location Based Entertainment) urban new entertainment - Internet video application products and services - Mobile information product sales and services (planned contraction)[25](index=25&type=chunk) - Performance drivers primarily include significant revenue growth from CG/VR content production, children's industry chain development and operation, and LBE urban new entertainment, as well as substantial investment income from the non-same-control business combination after acquiring a 49% stake in Anhui Saida[45](index=45&type=chunk)[46](index=46&type=chunk) [II. Significant Changes in Major Assets](index=14&type=section&id=II.%20Significant%20Changes%20in%20Major%20Assets) During the reporting period, the company's major assets underwent significant changes, primarily driven by the non-same-control merger of Anhui Saida, leading to substantial increases in accounts receivable, inventory, goodwill (up 1208.68%), and long-term deferred expenses, alongside increased investment in children's and VR projects boosting intangible assets (copyrights) and development expenditures, while cash and equivalents decreased by 35.21% to support investment activities Significant Changes in Major Assets | Major Asset | Change from Period-Start | Significant Change Description | | :--- | :--- | :--- | | Goodwill | +1208.68% | Mainly due to significant goodwill arising from non-same-control business combination with Anhui Saida | | Development Expenditures | +228.10% | Mainly due to increased R&D investment in 'VR Film Promotion Platform' and 'Family Fun Entertainment Platform' fundraising projects | | Accounts Receivable | +131.86% | Mainly due to merger of Anhui Saida and business development of subsidiary Oriental Dream | | Inventory | +53.85% | Mainly due to merger of Anhui Saida and business development of grandchild company Hengxin Oriental Children | | Cash and Equivalents | -35.21% | Mainly due to significant investment expenditures this period | - The company holds two major overseas assets: an investment in US VR content production company VRC, accounting for **5.41%** of the company's net assets, and an investment in New Zealand children's cultural creation company Pukeko Pictures, accounting for **3.89%** of the company's net assets[57](index=57&type=chunk) [III. Core Competitiveness Analysis](index=15&type=section&id=III.%20Core%20Competitiveness%20Analysis) The company's core competitiveness is built upon seven key advantages: leading digital visual content production capabilities, a full industry chain layout from IP acquisition to channel distribution, rich proprietary and cooperative IP resources, stable strategic partnerships with internationally renowned companies like Weta Workshop, continuous CG/VR technology R&D investment, integrated online and offline channel resources, and significant intellectual property accumulation including 14 invention patents and 257 registered trademarks - The company maintains strategic partnerships with multiple internationally renowned film, animation, and special effects companies, including Weta Workshop, Pukeko Pictures, and VRC, leveraging an 'organic + inorganic' approach to connect high-quality domestic and international resources and build a 'technology + content + scenario' VR industry ecosystem[61](index=61&type=chunk)[62](index=62&type=chunk) - The company independently developed a CG socialized production platform, achieving industrialized processes and management for digital image creation, effectively enhancing content creation efficiency and production scale[58](index=58&type=chunk) - As of the end of the reporting period, the company held **14 invention patents**, **257 registered trademarks**, **211 software copyrights**, and **176 work copyrights**, demonstrating a significant intellectual property advantage[66](index=66&type=chunk)[68](index=68&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [I. Overview](index=18&type=section&id=I.%20Overview) In H1 2018, driven by its 'artistic creativity + visual technology' strategy, the company achieved robust performance growth with total revenue reaching $320.32 million, up 62.12%, and net profit attributable to parent company surging to $187.74 million, up 206.19%, primarily due to rapid development in CG/VR content production, children's industry chain, and LBE urban new entertainment, alongside an approximately $114 million investment gain from acquiring the remaining equity in Anhui Saida, while strategically scaling back mobile information product sales Key Financial Indicators (H1 2018) | Financial Indicator | 2018年上半年 | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | $320.32 million | 62.12% | | Operating Profit | $178 million | 162.34% | | Net Profit Attributable to Parent | $188 million | 206.19% | - Investment income reached **$132 million** during the reporting period, a **96.12%** year-on-year increase, primarily due to the completion of the 100% acquisition of Anhui Saida, constituting a non-same-control business combination, which generated approximately **$114 million** in investment income from the remeasurement of the original long-term equity investment at fair value[72](index=72&type=chunk) - The company's core business segments progressed smoothly: in CG/VR content, 'Space Academy' animation production was completed, and VRC's VR film won an award; in the children's industry chain, the 'Oriental Children' brand strategy and 'Family Fun' interactive entertainment platform were launched; in LBE business, multiple offline venue projects in Zhuhai, Wuhan, and Nanjing advanced steadily[74](index=74&type=chunk)[77](index=77&type=chunk)[81](index=81&type=chunk) [II. Analysis of Principal Activities](index=21&type=section&id=II.%20Analysis%20of%20Principal%20Activities) During the reporting period, the company optimized its main business structure with rapid growth in emerging sectors; professional technical services for culture and entertainment reached $184.12 million, up 114.59%, becoming a core revenue stream; children's industry chain development and operation revenue grew by 248.60%, and LBE urban new entertainment by 109.37%; traditional mobile information product sales and services revenue declined by 8.68% with a 15.19 percentage point drop in gross margin, reflecting the effectiveness of strategic contraction; and new internet video application products and services contributed approximately $30.97 million in revenue Revenue and Gross Margin by Product/Service | By Product or Service | Operating Revenue (CNY) | Operating Revenue YoY Change | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Professional Technical Services for Culture and Entertainment** | $184.12 million | 114.59% | 46.63% | -16.00% | | - Children's Industry Chain Development and Operation | $96.86 million | 248.60% | 45.64% | -25.68% | | - LBE Urban New Entertainment | $55.83 million | 109.37% | 53.48% | 8.02% | | **Mobile Information Product Sales and Services** | $95.93 million | -8.68% | 12.44% | -15.19% | | **Internet Video Application Products and Services** | $30.97 million | - | 51.83% | - | - The company's profit sources underwent significant changes, primarily stemming from the operating performance growth of wholly-owned subsidiary Oriental Dream and investment income generated by the non-same-control business combination with Anhui Saida[90](index=90&type=chunk) [III. Analysis of Non-Principal Activities](index=23&type=section&id=III.%20Analysis%20of%20Non-Principal%20Activities) During the reporting period, non-principal activities significantly contributed to the company's profit, primarily from $132 million in investment income, accounting for 73.13% of total profit, largely derived from the non-recurring gain on remeasurement of original equity investment at fair value during the non-same-control business combination with Anhui Saida, which is not sustainable Non-Principal Activities Analysis | Item | Amount (CNY) | Share of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | $131.89 million | 73.13% | Primarily investment income from remeasuring original equity investment at fair value due to non-same-control business combination with Anhui Saida, etc | No | | Non-Operating Income | $3.13 million | 1.74% | Mainly government subsidies income | No | [IV. Analysis of Assets and Liabilities](index=24&type=section&id=IV.%20Analysis%20of%20Assets%20and%20Liabilities) As of the end of the reporting period, the company's total assets reached $2.62 billion, an increase of 10.78% from the previous year-end, with significant changes in asset structure primarily due to the merger of Anhui Saida and business expansion: goodwill's proportion of total assets surged from 1.55% to 17.67%, accounts receivable and inventory also notably increased, and cash and equivalents decreased from 54.13% to 30.74% to support investment activities Asset and Liability Status Analysis | Major Asset | Proportion of Total Assets (Period-End) | Proportion of Total Assets (Prior Period-End) | Proportion Change | Significant Change Description | | :--- | :--- | :--- | :--- | :--- | | Goodwill | 17.67% | 1.55% | +16.12% | Mainly due to significant goodwill arising from non-same-control business combination with Anhui Saida | | Accounts Receivable | 9.85% | 2.87% | +6.98% | Mainly due to merger of Anhui Saida and business development of subsidiary Oriental Dream | | Inventory | 8.07% | 3.37% | +4.70% | Mainly due to merger of Anhui Saida and business development of grandchild company Hengxin Oriental Children | | Cash and Equivalents | 30.74% | 54.13% | -23.39% | Mainly due to higher investment expenditures this period | [V. Analysis of Investment Activities](index=25&type=section&id=V.%20Analysis%20of%20Investment%20Activities) During the reporting period, the company actively engaged in investment activities, with total investments reaching $867 million, a 96.44% year-on-year increase; significant equity investments included acquiring the remaining 49% stake in Anhui Saida for $294 million to achieve full control, and a $94.62 million investment for a 31.42% stake in New Zealand's Pukeko Pictures to deepen international cooperation; regarding raised funds, $617 million has been cumulatively invested, with 53.03% of the funds' original uses changed, primarily redirected to equity acquisitions in Anhui Saida and Pukeko Pictures - Two significant equity investments were completed during the reporting period: - **Acquisition of Anhui Saida**: Invested **$294 million** to acquire the remaining **49%** equity, achieving **100%** control, contributing **$15.22 million** in investment profit/loss this period - **Acquisition of Pukeko Pictures**: Invested **$94.62 million** to acquire **31.42%** equity, contributing **$0.13 million** in investment profit/loss this period[101](index=101&type=chunk)[102](index=102&type=chunk) - Total raised funds amounted to **$978 million**, with **$617 million** cumulatively invested; the total amount of raised funds with changed uses was **$519 million**, accounting for **53.03%** of the total, primarily used for the acquisition of Anhui Saida and Pukeko Pictures equity[104](index=104&type=chunk)[108](index=108&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=34&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company identified five major operational risks: Anhui Saida's potential failure to meet performance commitments, slower-than-expected VR industry development impacting business performance, integration challenges following acquisitions of companies like Oriental Dream and Anhui Saida, continued decline in traditional mobile information product sales, and uncertainties in the implementation and market changes of fundraising investment projects, for which the company has developed corresponding countermeasures - Anhui Saida's original shareholders committed to achieving net profits of **$60 million** and **$70 million** in 2018 and 2019 respectively; if its operations fall short of expectations, the performance commitments may not be fulfilled[123](index=123&type=chunk) - The company's CG/VR content production business relies on advanced hardware technology; if hardware development fails to keep pace with industry demand, it will delay the realization of the company's performance in this area[124](index=124&type=chunk) - The company has expanded its assets and business scale through multiple mergers and acquisitions, but faces integration risks in business systems, organizational structures, and corporate culture[126](index=126&type=chunk) [Significant Matters](index=35&type=section&id=Significant%20Matters) [XII. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=37&type=section&id=XII.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company continued its 2017 restricted stock incentive plan, completing the grant of 16.12 million restricted shares to 38 grantees at $6.35 per share in December 2017, and initiating the repurchase and cancellation of 1.07 million restricted shares from 3 departing grantees at $6.30 per share in June 2018 - On December 19, 2017, the company completed the registration of restricted stock grants, awarding **16.12 million shares** to **38 grantees** at an exercise price of **$6.35/share**, with lock-up periods of 24, 36, and 48 months respectively[142](index=142&type=chunk) - On June 8, 2018, due to the departure of **3 grantees**, the company's board of directors approved the repurchase and cancellation of their combined **1.07 million restricted shares** at a repurchase price of **$6.30/share**[143](index=143&type=chunk) [XIV. Significant Contracts and Their Performance](index=39&type=section&id=XIV.%20Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company advanced two significant cooperation projects: the 'Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park Herbal Science Museum (Phase I)' project with Aotou (Hengqin) and others, which had cumulatively recognized revenue of $56.64 million by period-end, and the 'China-New Zealand Creative Industry Park' project with Pukeko Pictures and others, which had cumulatively recognized revenue of $2.08 million by period-end Significant Contracts Performance | Contract Subject | Partner | Contract Date | Transaction Price (CNY '0k) | Performance as of Period-End | | :--- | :--- | :--- | :--- | :--- | | Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park Herbal Science Museum (Phase I) Project | Aotou (Hengqin) Health Tourism Co., Ltd. etc | 2017年12月25日 | $200.00 million | Cumulatively recognized revenue of **$56.64 million** | | Construction of China-New Zealand Creative Industry Park | Pukeko Pictures, CDB Oriental Urban Development Investment Co., Ltd. | 2017年11月13日 | - | Cumulatively recognized revenue of **$2.08 million** | [XVI. Other Significant Matters](index=41&type=section&id=XVI.%20Other%20Significant%20Matters) During the reporting period, the company had two other significant matters: first, the acquisition of the remaining 49% equity in Anhui Saida was completed, with the counterparty Zhou Jie committing to use part of the transaction proceeds to increase his shareholding in the company, which has been partially fulfilled; second, 70.56 million restricted shares from the company's 2017 non-public offering of supporting funds, representing 13.30% of total share capital, were unrestricted and listed for trading on April 24, 2018 - The acquisition of **49%** equity in Anhui Saida was completed, with the counterparty Zhou Jie committing to use **$120 million** of the after-tax transaction proceeds to increase his shareholding in the company; as of the end of the reporting period, Zhou Jie had increased his holdings by **7.26 million shares**, representing **1.37%** of the total share capital[156](index=156&type=chunk) - On April 24, 2018, **70.56 million restricted shares** from the company's non-public offering of supporting funds were unrestricted and listed for trading, accounting for **13.30%** of the company's total share capital[157](index=157&type=chunk) [Changes in Share Capital and Shareholder Information](index=42&type=section&id=Changes%20in%20Share%20Capital%20and%20Shareholder%20Information) [I. Changes in Share Capital](index=42&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital of 530.73 million shares remained unchanged, but the share structure shifted primarily due to the lifting of restrictions on 70.56 million shares from the 2017 non-public offering of supporting funds on April 24, 2018, resulting in a decrease in restricted shares from 53.79% to 40.52% and an increase in unrestricted shares from 46.21% to 59.48% - Due to the expiration of the lock-up period for some shares from the non-public offering of supporting funds, **70.56 million restricted shares** were converted into unrestricted shares[162](index=162&type=chunk) Share Class | Share Class | Before Change (%) | After Change (%) | | :--- | :--- | :--- | | Restricted Shares | 53.79% | 40.52% | | Unrestricted Shares | 46.21% | 59.48% | [III. Number of Shareholders and Shareholding Information](index=43&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Information) As of the end of the reporting period, the company had 21,533 common shareholders, with a stable top ten shareholder structure where the actual controller Meng Xianmin held a controlling stake of 27.37%, other major shareholders included Wang Bing (6.84%), Pei Jun (3.52%), and several institutional investors, and new top ten shareholder Zhou Jie held 1.37% as part of his commitment to increase holdings following the Anhui Saida acquisition Top Shareholders Information | Shareholder Name | Shareholder Type | Shareholding (%) | Shares Held | | :--- | :--- | :--- | :--- | | Meng Xianmin | Domestic Natural Person | 27.37% | 145.27 million | | Wang Bing | Domestic Natural Person | 6.84% | 36.28 million | | Pei Jun | Domestic Natural Person | 3.52% | 18.67 million | | China Merchants Bank...Jiutai Jiuli... | Other | 3.36% | 17.83 million | | Xiamen Rongxinbo Investment... | Domestic Non-State-Owned Legal Person | 3.16% | 16.78 million | - As of the end of the reporting period, the total number of common shareholders was **21,533**[167](index=167&type=chunk) [Financial Report](index=49&type=section&id=Financial%20Report) [II. Financial Statements](index=49&type=section&id=II.%20Financial%20Statements) This section presents the company's core financial statements for H1 2018, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, showing steady growth in total assets, significant increases in operating revenue and net profit, negative operating cash flow, and an increase in owners' equity due to profit growth and share-based payments 1. Consolidated Balance Sheet As of June 30, 2018, the company's total assets reached $2.62 billion, up 10.78% from the beginning of the period, with asset growth primarily driven by goodwill from the Anhui Saida acquisition (increasing to $462.19 million) and increased accounts receivable and inventory due to business expansion, while on the liability side, short-term borrowings rose from $30 million to $80 million, and equity attributable to the parent company increased to $2.43 billion | Item | Period-End Balance (CNY) | Period-Start Balance (CNY) | | :--- | :--- | :--- | | **Total Assets** | **$2.62 billion** | **$2.36 billion** | | Cash and Equivalents | $804.18 million | $1.24 billion | | Accounts Receivable | $257.65 million | $111.13 million | | Goodwill | $462.20 million | $35.32 million | | **Total Liabilities** | **$180.24 million** | **$97.16 million** | | Short-term Borrowings | $80.00 million | $30.00 million | | **Total Owners' Equity** | **$2.44 billion** | **$2.26 billion** | 3. Consolidated Income Statement In H1 2018, the company achieved total operating revenue of $320.32 million, up 62.12%, and net profit of $187.25 million, up 211.79%, with significant profit growth primarily due to $132 million in investment income, including non-recurring investment income from the Anhui Saida acquisition, resulting in a net profit attributable to the parent company of $187.74 million after deducting income tax expenses (negative this period due to animation enterprise tax refunds) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | I. Total Operating Revenue | $320.32 million | $197.58 million | | II. Total Operating Costs | $275.03 million | $193.14 million | | Add: Investment Income | $131.89 million | $67.25 million | | III. Operating Profit | $177.65 million | $67.72 million | | IV. Total Profit | $180.34 million | $66.95 million | | V. Net Profit | $187.25 million | $60.06 million | | Net Profit Attributable to Parent Company Shareholders | $187.74 million | $61.32 million | 5. Consolidated Cash Flow Statement During the reporting period, the company's cash flow showed net outflows from operating and investing activities and net inflows from financing activities; net cash flow from operating activities was -$25.83 million, mainly due to extended sales collection cycles and increased procurement expenditures; net cash outflow from investing activities reached $436 million, primarily for the Anhui Saida acquisition and other external investments; net cash inflow from financing activities was $24.04 million, mainly from bank borrowings; and cash and cash equivalents at period-end significantly decreased by $437 million from the beginning of the period | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -$25.83 million | -$13.20 million | | Net Cash Flow from Investing Activities | -$435.67 million | $1.67 million | | Net Cash Flow from Financing Activities | $24.04 million | $950.65 million | | Net Increase in Cash and Cash Equivalents | -$437.46 million | $939.12 million | [VII. Notes to Consolidated Financial Statements](index=93&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statements) This section details the composition and changes of major accounts in the consolidated financial statements, highlighting significant increases in accounts receivable, inventory, and goodwill due to the Anhui Saida acquisition; an increase in other current assets and negative current income tax expense due to tax refunds from animation enterprise certification; investment income primarily from the accounting treatment of the Anhui Saida acquisition; and a substantial increase in development expenditures reflecting the company's ongoing investment in VR and family entertainment platforms 5. Accounts Receivable As of period-end, the company's accounts receivable book value was $258 million, a significant increase of 131.86% from $111 million at the beginning of the period, primarily due to the substantial increase in accounts receivable from the non-same-control merger of Anhui Saida and business development of subsidiary Oriental Dream, with the top five debtors accounting for 30.56% of the total year-end balance - The year-end balance of accounts receivable significantly increased compared to the beginning of the period, primarily due to the merger of Anhui Saida and the business development of subsidiary Oriental Dream[342](index=342&type=chunk) Top 5 Accounts Receivable Debtors | Debtor Name | Period-End Balance (CNY) | Proportion of Total Accounts Receivable (Period-End) | | :--- | :--- | :--- | | Beijing Longbu Visual Culture Industry Co., Ltd. | $22.67 million | 8.51% | | Hubei Duobao Qibing Film and Television Culture Co., Ltd. | $16.80 million | 6.31% | | Shenzhen Zhongke Dingchuang Technology Co., Ltd. | $15.54 million | 5.84% | | Aotou (Hengqin) Health Tourism Co., Ltd. | $15.12 million | 5.68% | | Bangwei International Industrial Co., Ltd. | $11.25 million | 4.22% | 27. Development Expenditures At the end of the reporting period, the company's development expenditures balance was $24.25 million, a significant increase of 228.10% from $7.39 million at the beginning of the period, with the growth primarily from ongoing R&D investments in the 'Family Fun Project' and 'VR Film Promotion Platform,' which increased by $10.98 million and $4.08 million respectively this period, reflecting the company's strong technological investment in new business areas Development Expenditures Details | Item | Period-Start Balance (CNY) | Current Period Increase (CNY) | Period-End Balance (CNY) | | :--- | :--- | :--- | :--- | | Family Fun Project | 0.00 | $10.98 million | $10.98 million | | VR Film Promotion Platform | 0.00 | $4.08 million | $4.08 million | | **Total** | **$7.39 million** | **$20.76 million** | **$24.25 million** | 28. Goodwill At the end of the reporting period, the company's goodwill book value surged from $38.62 million at the beginning of the period to $465 million, with this substantial increase primarily stemming from the non-same-control business combination with Anhui Saida this period, adding $427 million in goodwill, which arose because the merger cost ($556 million) exceeded the fair value share of Anhui Saida's identifiable net assets acquired ($129 million) - This period, goodwill increased by **$427 million** due to the non-same-control business combination with Anhui Saida[459](index=459&type=chunk) - The merger cost for acquiring Anhui Saida was **$556 million**, exceeding its identifiable net assets' fair value share of **$129 million**, with the difference forming goodwill[462](index=462&type=chunk) 69. Investment Income During the reporting period, the company achieved total investment income of $132 million, a major component of profit, with the largest portion being a $114 million gain from remeasuring the original equity investment at fair value during the non-same-control business combination with Anhui Saida, in addition to $10.77 million in long-term equity investment income accounted for under the equity method Investment Income Breakdown | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Investment income from remeasuring original equity at fair value in non-same-control business combinations | $114.30 million | 0.00 | | Long-term equity investment income accounted for under equity method | $10.77 million | -$4.61 million | | Investment income from wealth management products | $5.47 million | $0.08 million | | **Total** | **$131.89 million** | **$67.25 million** | [VIII. Changes in Consolidation Scope](index=141&type=section&id=VIII.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company's consolidation scope changed, primarily on March 20, 2018, when it acquired the remaining 49% equity in Anhui Saida Technology Co., Ltd., bringing the former joint venture into full subsidiary status, constituting a non-same-control business combination; additionally, the company established Wuhan Wow Space Dream Children's Park Management Co., Ltd., and ceased consolidating Shanghai Quren Entrepreneurship Incubator Co., Ltd. and Oriental Dream (Chengdu) Cultural Arts Development Co., Ltd. due to loss of control through equity transfer - On March 20, 2018, the company acquired the remaining **49%** equity in Anhui Saida, changing it from a joint venture to a wholly-owned subsidiary, constituting a non-same-control business combination[580](index=580&type=chunk) - During the reporting period, the company established a new subsidiary, 'Wuhan Wow Space Dream Children's Park Management Co., Ltd.', and ceased consolidating 'Shanghai Quren Entrepreneurship Incubator Co., Ltd.' and 'Oriental Dream (Chengdu) Cultural Arts Development Co., Ltd.' due to loss of control through equity transfer[228](index=228&type=chunk)[595](index=595&type=chunk) [Reference Documents](index=167&type=section&id=Reference%20Documents)

恒信东方文化股份有限公司 2018 年第一季度报告全文 恒信东方文化股份有限公司 2018 年第一季度报告 2018 年 04 月 1 恒信东方文化股份有限公司 2018 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。 公司负责人孟宪民、主管会计工作负责人陈伟及会计机构负责人(会计主管 人员)李玫声明：保证季度报告中财务报表的真实、准确、完整。 2 恒信东方文化股份有限公司 2018 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 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 公司报告期不存在将根据《公开发行证券的公司信息披露解释性公告第 1 号——非经常性损益》定义、列举的非经常性损益 项目界定为经常性损益的项目的情形。 二、重大风险提示 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | --- | --- | --- | | 营业总收入（元） | 158, ...

恒信东方文化股份有限公司 2017 年年度报告全文 恒信东方文化股份有限公司 2017 年年度报告 2018 年 04 月 1 恒信东方文化股份有限公司 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。 公司负责人孟宪民、主管会计工作负责人陈伟及会计机构负责人(会计主管 人员)李玫声明：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。 本报告中所涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者 的实质承诺，投资者及相关人士均应当对此保持足够的风险认识，并且应当理 解计划、预测与承诺之间的差异，注意投资风险。 公司存在移动信息产品销售与服务业务持续下滑的风险、并购和业务整合 风险、VR 行业发展不及预期的风险、核心技术人员不足或者流失的风险、业绩 承诺无法实现的风险，敬请广大投资者注意投资风险。公司在本报告第四节"经 营情况讨论与分析"中的"公司未来发展的展望"部分，详细描述了公司经营中可 能存在的风险及应对措施 ...