Jetsen(300182)2023-08-29 16:00Foreign Currency Transactions - The company reported that foreign currency transactions are initially recognized at the spot exchange rate on the transaction date, as published by the People's Bank of China[1]. - For monetary foreign currency items, the exchange rate on the balance sheet date is used for conversion, with exchange differences recognized in current profit or loss, except for specific capitalized assets and hedging instruments[1]. - The company’s financial statements involving overseas operations will recognize exchange differences as "foreign currency translation differences" in other comprehensive income, which will be reclassified to profit or loss upon disposal of the overseas operation[4]. - Cash flows in foreign currencies are converted at the exchange rate on the cash flow occurrence date, with the impact of exchange rate changes reported separately in the cash flow statement[4]. Financial Instruments - The company’s financial instruments are initially measured at fair value, with subsequent measurement depending on their classification[5]. - Debt instruments are classified based on the company's business model for managing financial assets and the cash flow characteristics of the financial assets[6]. - Financial assets measured at amortized cost are recognized for interest income using the effective interest method, with gains or losses from derecognition directly included in current profit or loss[6]. - Financial assets measured at fair value with changes recognized in other comprehensive income will have cumulative fair value changes reclassified to profit or loss upon derecognition[7]. Financial Performance - Total operating revenue for the first half of 2023 was CNY 1,487,759,050.38, a decrease of 13.5% compared to CNY 1,719,382,100.94 in the same period of 2022[28]. - Total operating costs decreased to CNY 1,137,093,448.93 from CNY 1,301,281,119.45, reflecting a reduction of 12.6%[28]. - Net profit for the first half of 2023 was CNY 352,364,308.74, down from CNY 418,389,248.49, representing a decline of 15.8%[28]. - Cash flow from operating activities showed a net outflow of CNY -84,822,343.19, compared to a smaller outflow of CNY -479,346.98 in the previous year[30]. - Cash flow from financing activities generated a net inflow of CNY 79,298,147.77, contrasting with a net outflow of CNY -39,730,578.29 in the same period of 2022[32]. Assets and Liabilities - Total assets increased to ¥10,555,887,316.25, up from ¥10,046,529,924.55, representing a growth of approximately 5.06%[19]. - Non-current assets totaled ¥7,692,995,637.21, a decrease from ¥7,795,043,671.58, reflecting a decline of about 1.32%[19]. - Current liabilities rose to ¥2,626,024,693.70, compared to ¥2,547,941,034.20, indicating an increase of approximately 3.06%[19]. - Total liabilities reached ¥2,740,008,279.95, up from ¥2,662,010,337.09, marking a growth of around 2.93%[19]. - Owner's equity increased to ¥7,815,879,036.30 from ¥7,384,519,587.46, showing an increase of about 5.87%[19]. Inventory and Cost Management - Inventory increased significantly to ¥50,018,405.78 from ¥2,931,371.61, representing a growth of approximately 1605.73%[22]. - The company’s inventory includes raw materials, work-in-progress, and finished goods, with initial measurement based on cost[55]. - The company follows specific accounting methods for inventory valuation related to film production, including pre-receiving production payments and adjusting costs upon completion[64]. - For sales of inventory, the company recognizes costs based on the revenue recognition criteria, using methods such as the planned income ratio method for partial rights transfers[66]. - The company assesses the net realizable value of inventory at the end of the period and adjusts for inventory impairment based on the lower of cost or net realizable value[67]. Research and Development - Research and development expenses increased significantly to CNY 12,907,928.20 from CNY 5,234,516.73, reflecting a growth of 146.5%[28]. - Internal research and development expenditures during the research phase are recognized as expenses in the current period[197]. - Development phase expenditures are recognized as intangible assets if certain conditions are met, including technical feasibility and intention to complete the asset[200]. - The company capitalizes development phase expenditures that meet the criteria, which are then classified as development expenditures on the balance sheet[200]. Risk Management and Strategy - The company emphasizes the importance of market, operational, and policy risks, detailing potential risks and countermeasures in the report[96]. - The company is committed to maintaining a robust financial position while exploring potential mergers and acquisitions to drive growth[38]. - The company is enhancing its operational stability and risk resistance by diversifying its revenue channels and strengthening its content library monetization[175]. - The company is integrating blockchain technology into its copyright management processes to improve operational efficiency and profitability in the future copyright market[170]. Equity and Shareholder Information - The company reported a decrease in retained earnings, with a balance of 681.0 million, down from 690.0 million in the previous year[33]. - The total equity rose slightly to CNY 7,608,176,629.12 from CNY 7,588,910,419.31, indicating a growth of 0.3%[27]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves[96]. - The company recorded a profit distribution of 11.8 million, which includes allocations to surplus reserves and general risk provisions[36]. Market and Industry Trends - The company operates in the new media copyright operation industry, which is experiencing growth due to increased copyright awareness and supportive national policies[163]. - Recent national policies have strengthened copyright protection, promoting the legitimate development of the online video industry[164]. - The company is focused on leveraging technological and business model innovations to drive growth in the film and television copyright market[163]. - The company is actively expanding its new media copyright operations, having launched multiple high-quality films and series in the first half of 2023, including "The Wandering Earth 2" and "A Smile is Beautiful"[173].