Financial Performance - Revenue decreased by approximately 91.4% to about RMB 0.5 million for the six months ended June 30, 2021, compared to approximately RMB 5.7 million for the same period in 2020[8]. - The group recorded a gross loss of approximately RMB 5.6 million for the six months ended June 30, 2021, compared to a gross profit of approximately RMB 3.0 million for the same period in 2020[8]. - Net loss for the six months ended June 30, 2021, was approximately RMB 27.9 million, significantly higher than the net loss of approximately RMB 6.5 million for the same period in 2020[8]. - The increase in sales costs was 126.5%, rising to approximately RMB 6.0 million for the six months ended June 30, 2021, from approximately RMB 2.7 million for the same period in 2020[15]. - Other income and gains during the reporting period were approximately RMB 0.8 million, a decrease from RMB 5.4 million for the same period last year, primarily due to reduced government subsidies from the Chinese government[16]. - Selling and distribution expenses were approximately RMB 0.6 million, remaining relatively stable compared to RMB 0.7 million for the six months ended June 30, 2020[18]. - Administrative expenses decreased by approximately 11.4% to RMB 7.4 million from RMB 8.3 million in the same period last year, mainly due to reduced listing expenses[19]. - Financial asset impairment losses increased to approximately RMB 21.3 million from RMB 5.7 million in the previous year, attributed to an increase in the aging of trade receivables[20]. - The loss attributable to equity holders of the parent company was approximately RMB 27.9 million, compared to RMB 6.5 million in the same period last year, primarily due to decreased revenue and increased financial asset impairment provisions[22]. - The company reported a pre-tax loss of RMB (34,162,000), which is a substantial increase from the pre-tax loss of RMB (6,636,000) in the previous year[73]. - The net loss for the period was RMB (27,942,000), compared to a net loss of RMB (6,517,000) in 2020, indicating a significant decline in performance[73]. - Basic and diluted loss per share was RMB (2.69) compared to RMB (0.65) in the prior year, reflecting a worsening financial position[73]. - The company reported a total comprehensive loss for the first half of 2021 of RMB 28,501 thousand, compared to a total comprehensive loss of RMB 3,970 thousand in the first half of 2020[82]. Business Operations - The group granted licenses for five television dramas during the reporting period, including four self-produced and one purchased[10]. - The board anticipates that the overall industry and business environment will remain very challenging in the coming year, with a limited number of new television drama licenses expected[12]. - The company plans to expand its business by developing and strengthening relationships with online video platforms to capture new opportunities in the television drama market[12]. - The group is currently in the preliminary production of two web dramas and is exploring investments in web dramas and online movies[12]. - The company aims to diversify its revenue sources and enhance overall profitability by expanding cooperation with new media channels[12]. - The board has decided not to declare an interim dividend for the six months ended June 30, 2021[8]. - The board has decided to suspend the production of one of the planned television dramas due to changing market trends and customer preferences[50]. Financial Position - As of June 30, 2021, the total cash and cash equivalents amounted to approximately RMB 127.8 million, down from RMB 143.4 million as of December 31, 2020[24]. - The equity attributable to equity holders of the parent company decreased by approximately 6.3% to RMB 425.3 million from RMB 453.8 million at the end of the previous year, mainly due to the reported loss during the period[25]. - The company had no bank borrowings as of June 30, 2021, and maintained a debt-to-equity ratio of zero, consistent with the end of the previous year[24]. - Total assets as of June 30, 2021, were RMB 426,516,000, a decrease from RMB 455,268,000 as of December 31, 2020[79]. - Current assets decreased to RMB 430,934,000 from RMB 468,932,000, indicating a decline in liquidity[79]. - The company’s cash and cash equivalents were RMB 127,834,000, down from RMB 143,366,000 at the end of 2020[79]. - The total equity attributable to the owners of the parent was RMB 425,326,000, a decrease from RMB 453,827,000 at the end of the previous year[79]. - The company recorded a foreign exchange loss of RMB 559 thousand during the first half of 2021, compared to a gain of RMB 2,547 thousand in the same period of 2020[85]. - The company made adjustments for inventory write-downs amounting to RMB 5,956 thousand in the first half of 2021, while trade receivables impairment was RMB 18,233 thousand[85]. - The company’s total assets as of June 30, 2021, were not explicitly stated in the provided documents, indicating a need for further disclosure in future reports[92]. Shareholder Information - Major shareholders hold significant stakes, with Liu Naiyue, Liu Peiyao, and Wei Xian each owning 23.04% of the company[52]. - BLW Investment Limited holds 239,002,500 shares, representing approximately 23.04% of the total shares[60]. - Suiyong International Limited owns 110,010,000 shares, accounting for 10.60% of the total shares[60]. - SDJZ Investment Limited has 100,622,500 shares, which is about 9.69% of the total shares[60]. - JMJ Group Limited holds 86,872,500 shares, representing 8.37% of the total shares[60]. - SYYT Investment Limited owns 70,002,500 shares, accounting for 6.74% of the total shares[60]. - Jinping Holding Limited has 54,997,500 shares, which is approximately 5.30% of the total shares[60]. - The core shareholders of BLW Investment Limited include Bai Yang, Liu Peiyao, Wu Tao, Liu Naiyue, and Wei Xian, holding approximately 43.44%, 23.17%, 15.44%, 9.65%, and 8.30% of shares respectively[62]. - The company confirmed that core shareholders will continue to act in concert regarding their control over BLW Investment Limited until otherwise terminated[62]. Management and Governance - The board of directors experienced changes, with Wu Tao resigning as CEO on August 27, 2021, and Cai Xiaoxin appointed as the new CEO on the same day[65]. - The company adopted a share option plan on December 12, 2019, allowing for a maximum of 10% of issued shares (100,000,000 shares) to be granted under the plan[66]. - The company has not granted or agreed to grant any share options under the share option scheme as of the report date[67]. - The total remuneration paid to key management personnel increased to RMB 567,000 from RMB 479,000 year-over-year[128]. Accounting and Compliance - The company adopted simplified accounting methods for lease payments affected by COVID-19, with no significant impact on financial performance reported[97]. - The company has only one operating segment, with no division based on product lines, indicating a streamlined operational structure[100]. - The company has not disclosed any major customers contributing over 10% of revenue for the current period, contrasting with previous periods[102]. - The company anticipates no impact on its financial position from the recent accounting policy changes related to interest rate benchmarks[97]. - The change in level 3 fair value measurement during the period shows an increase from RMB 4,260,000 on January 1, 2021, to RMB 9,300,000 on June 30, 2021, with purchases of RMB 5,040,000[135]. - There were no transfers between level 1 and level 2 fair value measurements during the period, nor any transfers into or out of level 3[135]. - No significant events affecting the group occurred after June 30, 2021[136].
新石文化(01740) - 2021 - 中期财报