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欢喜传媒(01003) - 2020 - 年度财报
01003HUANXI MEDIA(01003)2021-04-30 14:03

Box Office Performance - In 2020, total box office receipts in China amounted to RMB 20,417 million, with domestic films contributing RMB 17,093 million, accounting for 83.72% of the total[8]. - The top 10 highest-grossing films in 2020 were all domestically produced, reflecting the audience's recognition of quality domestic films[8]. - The film "Leap" generated box office receipts exceeding RMB 100 million within just two days of release, ultimately totaling RMB 830 million[12]. - "My People, My Homeland" also performed exceptionally well, ranking among the top 10 highest-grossing films in China for 2020 and one of the top three globally[12]. - "Warm Hug" achieved nearly RMB 200 million in box office receipts on its first day, with total receipts reaching RMB 860 million[12]. - The Group's productions, including "Leap," "My People, My Homeland," and "Warm Hug," achieved robust box office receipts, demonstrating the competitiveness of premium films[42]. - The film "囧媽" was released on an online platform in collaboration with ByteDance due to the pandemic, generating considerable revenue for the Group[49]. - The film "Crazy Alien" generated revenue of RMB700 million, which had a guaranteed minimum distribution amount of RMB2.8 billion[28]. Online Video Platform Growth - The number of downloads and fee-paying subscribers for the online video platform "huanxi.com" has shown strong growth momentum, driven by the "Stay-at-Home Economy" during the pandemic[6]. - The Group's online video platform has promising long-term growth potential due to the increased demand for digital content during the pandemic[6]. - The number of online video users in China surged to 927 million by December 2020, a 76.33 million increase from March 2020, representing 93.7% of the total netizen population[14]. - The Group's online video platform "huanxi.com" has over 8 million fee-paying subscribers and the app has been downloaded over 33 million times[52]. - The Group's strategic focus on quality content production and digital platform expansion positions it well for future growth in the evolving media landscape[6]. - The Group's strategic cooperation with online video platforms and TV terminals facilitated the development of the "huanxi.com" business[42]. - The Group's philosophy of "Importance of Contents" guided its efforts to produce premium film and TV productions during the challenging market environment[42]. Impact of the Pandemic - The Chinese film industry faced significant challenges due to the pandemic, with cinemas closed from early 2020 until July 20, leading to a difficult period of over six months[8]. - The pandemic caused delays in film releases, impacting box office receipts due to prevention and control measures[43]. - The Chinese film market is recovering from the pandemic, supported by government policies and subsidies for affected companies[20]. - The Group will continue to monitor the pandemic's impact on the media market and take proactive measures to minimize its effects on business operations and financial results[56]. - The financial performance of the Group for the year ending December 31, 2021, may be affected by the ongoing pandemic, although the financial impact cannot be reasonably estimated at this stage[107]. Strategic Partnerships and Investments - The Group secured a strategic investment of HK513millionfromBilibiliInc.,alongwithacooperationagreementtoenhancecontentdistribution[15].−ThecollaborationwithBilibiliwillallowforexclusivebroadcastingoftheGroup′sfilmandTVcontent,increasingaudiencereachandrevenuepotential[15].−TheGroup′sonlinevideoplatform"huanxi.com"expandeditscoveragethroughstrategicpartnershipswithmajorplatformsanddevices,includingHuaweiandXiaomi[16].−TheGrouphasestablishedpartnershipswithmajorplatformsincludingHuaweiVideo,XiaomiTV,andLeTVSuperTV,coveringapproximately18million(18,000,000)activeterminalsand55million(55,000,000)users[20].−TheGroupenteredintoasubscriptionagreementwithBilibilion30August2020,issuing346,626,954ordinarysharesatasubscriptionpriceofHK 513 million from Bilibili Inc., along with a cooperation agreement to enhance content distribution[15]. - The collaboration with Bilibili will allow for exclusive broadcasting of the Group's film and TV content, increasing audience reach and revenue potential[15]. - The Group's online video platform "huanxi.com" expanded its coverage through strategic partnerships with major platforms and devices, including Huawei and Xiaomi[16]. - The Group has established partnerships with major platforms including Huawei Video, Xiaomi TV, and LeTV Super TV, covering approximately 18 million (18,000,000) active terminals and 55 million (55,000,000) users[20]. - The Group entered into a subscription agreement with Bilibili on 30 August 2020, issuing 346,626,954 ordinary shares at a subscription price of HK1.480 per share, raising approximately HK1.476persharenet[57].FinancialPerformance−FortheyearendedDecember31,2020,revenuefromthefilmandTVprogrammesrightsbusinessamountedtoHK1.476 per share net[57]. Financial Performance - For the year ended December 31, 2020, revenue from the film and TV programmes rights business amounted to HK633,176,000, a decrease from HK814,425,000in2019[43].−TheGrouprecordedalossofHK814,425,000 in 2019[43]. - The Group recorded a loss of HK144,636,000 in the film and TV programmes rights business for 2020, compared to a profit of HK279,417,000in2019[43].−Fortheyearended31December2020,theGrouprecordedrevenueofHK279,417,000 in 2019[43]. - For the year ended 31 December 2020, the Group recorded revenue of HK633,176,000, a decrease of 22.2% from HK814,425,000in2019,andanetlossofHK814,425,000 in 2019, and a net loss of HK236,391,000 compared to a net profit of HK105,103,000in2019[56].−ThelosspersharefortheyearwasHK105,103,000 in 2019[56]. - The loss per share for the year was HK0.07, a decline from earnings per share of HK0.03in2019,whilethenetassetvaluepershareattributabletoownersincreasedtoHK0.03 in 2019, while the net asset value per share attributable to owners increased to HK0.42 from HK$0.36[57]. - The Group's gearing ratio improved to 0.03 as of 31 December 2020, down from 0.04 in 2019, indicating a stronger capital structure[57]. Leadership and Management - The Company has a strong leadership team with extensive backgrounds in law, media, and film production, positioning it well for future growth[68][70]. - The Board consists of eight members, including two executive Directors, three non-executive Directors, and three independent non-executive Directors[161]. - The Group maintains a clear operational and financial independence from Mr. Ning's and Mr. Xu's Companies, ensuring no conflicts of interest[161]. - The participation of Mr. Ning and Mr. Xu is viewed as instrumental for the Company's development in the media and entertainment industry[147]. Shareholder Interests - As of December 31, 2020, substantial shareholders holding 5% or more of the company's issued share capital include Dong Ping with 1,468,734,354 shares, representing approximately 42.37%[172]. - The company is actively monitoring the interests of substantial shareholders and their implications for corporate governance[172]. - The company is committed to transparency regarding shareholder interests as mandated by the Securities and Futures Ordinance[172]. VIE Group and Compliance - The VIE Group, which includes Beijing Huanxi Shou Ying Culture Company Limited and its subsidiaries, is involved in film and TV production and internet audio-visual services in the PRC[180]. - The company has established contractual arrangements to gain financial and operational control over the VIE Group, ensuring compliance with PRC laws[181]. - The financial results of the VIE Group are consolidated into the company's financial statements as indirect subsidiaries under HKFRS 10[182]. - The VIE Group holds necessary permits for audio-visual program publication and telecommunications services[184].