Financial Performance - The company's revenue for the first half of 2021 reached RMB 4.342 billion, representing a year-on-year increase of 33.2% compared to RMB 3.260 billion in the same period of 2020[7]. - Gross profit for the same period was RMB 2.288 billion, up 32.2% from RMB 1.731 billion in the previous year[7]. - Operating profit turned positive at RMB 1.284 billion, a significant recovery from an operating loss of RMB 3.556 billion in the first half of 2020[7]. - The company reported a net profit attributable to equity holders of RMB 1.083 billion, a substantial rebound from a loss of RMB 3.296 billion in the same period last year[7]. - Revenue for the six months ended June 30, 2021, reached RMB 4,342,146 thousand, a 33% increase from RMB 3,260,206 thousand in the same period of 2020[15]. - Gross profit for the same period was RMB 2,288,065 thousand, up from RMB 1,731,312 thousand, reflecting a gross margin improvement[15]. - The company reported a net profit of RMB 1,080,950 thousand for the first half of 2021, compared to a net loss of RMB 3,310,525 thousand in the prior year[15]. - The company reported a significant increase in other income, amounting to RMB 901,146 thousand, compared to a loss of RMB 3,529,736 thousand in the previous year[78]. - The company reported a net profit attributable to equity holders of RMB 1,082,742,000 for the six months ended June 30, 2021, compared to a net loss of RMB 3,295,874,000 for the same period in 2020[131]. User Engagement - The number of active users for the online business reached 232.7 million, showing a quarter-on-quarter growth of 4%[8]. - Daily active users for the free reading service reached 13 million in June 2021, a 30% increase from 10 million in December 2020[8]. - The number of new authors on the platform increased significantly, with 86% of new authors being born in the 1990s, and they accounted for 57% of the top 100 new book sales[11]. - Average monthly active users for proprietary platform products and Tencent's self-operated channels slightly decreased by 0.3% year-on-year to 232.7 million[20]. - Average monthly paying users decreased by 12.3% year-on-year to 9.3 million[20]. Revenue Segmentation - The copyright operations and other segments saw revenue growth of 125% to RMB 1.8 billion, accounting for 42% of total revenue[8]. - Online business revenue grew by 3.4% year-on-year to RMB 2,540.0 million, accounting for 58.5% of total revenue[18]. - Revenue from proprietary platform products in the online business decreased by 5.5% year-on-year to RMB 1,880.7 million[18]. - Revenue from third-party platforms in the online business surged by 91.9% year-on-year to RMB 305.8 million[18]. - The revenue from the online business segment was RMB 2,539,956 thousand for the first half of 2021, compared to RMB 2,457,276 thousand in the same period of 2020, indicating a growth of approximately 3.4%[112][113]. Cost and Expenses - Cost of revenue increased by 34.4% year-on-year to RMB 2,054.1 million, primarily due to expansion in copyright licensing and free reading business[21]. - Sales and marketing expenses increased by 6.1% to RMB 1,348.2 million, while the percentage of sales and marketing expenses to revenue decreased from 39.0% to 31.0%[23]. - General and administrative expenses rose by 81.1% to RMB 635.1 million, mainly due to increased employee compensation and related costs[24]. - The total costs of revenue for the first half of 2021 were RMB 2,054,081 thousand, up from RMB 1,528,894 thousand in the same period of 2020, reflecting an increase of approximately 34.3%[112][113]. Investments and Acquisitions - The company has launched over 70 comic adaptations of its IPs on Tencent Comics, with plans for 300 adaptations over three years[9]. - The company aims to expand its international market presence, with approximately 1,700 translated Chinese works and 280,000 local original works available on its overseas platform WebNovel[14]. - The company completed the acquisition of New Classics Media Holdings Limited on October 31, 2018, expanding its copyright operation business in film and television production[90]. - The company completed an investment of approximately RMB 299,282,000 for a 5% stake in a mobile reading and copyright operation company on July 30, 2021[196]. Shareholder Information - The total number of issued shares as of June 30, 2021, was 1,018,805,679 shares[49]. - Tencent Holdings Limited holds a total of 587,128,824 shares, representing approximately 57.63% of the company's equity[54]. - The company has adopted a Restricted Share Unit Plan, which was approved on December 23, 2014, and is effective for a period of ten years[56]. - The company has adopted a share incentive plan allowing for a total of 40,409,091 new ordinary shares to attract and retain talent[172]. Financial Position - Total assets increased from RMB 21,315.8 million as of December 31, 2020, to RMB 22,609.4 million as of June 30, 2021, while total liabilities rose slightly from RMB 6,217.3 million to RMB 6,227.7 million[35]. - The company's debt-to-equity ratio improved from 29.2% to 27.5% during the same period[35]. - The company's cash net amount increased from RMB 5,011.0 million to RMB 5,691.9 million, primarily due to cash generated from operating activities and the sale of equity[37]. - The company maintained a current ratio of 276.1% as of June 30, 2021, up from 272.7% at the end of 2020[35]. Risk Management - The company’s risk management and internal control systems have been deemed effective and adequate by the audit committee[43]. - The group faces various financial risks, including market risk, credit risk, and liquidity risk[98]. - The financial risk management policies remained unchanged during the six months ended June 30, 2021[98]. Future Outlook - The company plans to continue developing quality IP series and expand into new areas such as online movies and short dramas[9]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[83]. - The company has set a performance guidance of 15% revenue growth for the next quarter[200]. - The implementation of a new user engagement strategy is projected to improve retention rates by 10%[200].
阅文集团(00772) - 2021 - 中期财报