中国三三传媒(08087) - 2020 Q3 - 季度财报

Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's revenue grew 62.8% to RMB 72.37 million for the nine months ended September 30, 2020, yet the period loss expanded to RMB 34.78 million due to increased expenses 2020 First Three Quarters and Third Quarter Performance Overview (Unit: RMB thousands) | Indicator | Nine Months Ended Sep 30 (2020) | Nine Months Ended Sep 30 (2019) | Year-over-Year Change | Three Months Ended Sep 30 (2020) | Three Months Ended Sep 30 (2019) | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 72,370 | 44,458 | +62.8% | 22,227 | 16,149 | +37.6% | | Gross Profit | 9,656 | 4,586 | +110.5% | 384 | 1,404 | -72.6% | | Loss Before Tax | (34,737) | (16,480) | +110.8% | (8,229) | (9,019) | -8.8% | | Loss for the Period | (34,777) | (16,480) | +111.0% | (8,241) | (9,019) | -8.6% | | Loss Attributable to Owners of the Company for the Period | (34,660) | (16,526) | +109.7% | (8,228) | (8,916) | -7.7% | | Basic and Diluted Loss Per Share (RMB cents) | (5.9) | (2.9) | +103.4% | (1.4) | (1.5) | -6.7% | Condensed Consolidated Statement of Changes in Equity Total equity decreased by 4.6% to RMB 346 million in the first three quarters of 2020, primarily due to a RMB 34.78 million loss, partially offset by share placement proceeds Summary of Changes in Equity (Unit: RMB thousands) | Item | Amount | | :--- | :--- | | Total Equity as at January 1, 2020 | 362,711 | | Loss for the Period | (34,777) | | Total Comprehensive Expense for the Period | (37,915) | | Shares Issued on Placement | 7,855 | | Total Equity as at September 30, 2020 | 346,151 | Notes to the Condensed Consolidated Financial Statements Note 1 Company Information The Company, a Cayman Islands investment holding entity, operates in outdoor and digital advertising, film and entertainment, prepaid cards, and print media advertising - The Group's core businesses encompass four segments: outdoor and digital advertising, film and entertainment investment, prepaid cards, and print media advertising[11] Note 4 Revenue and Operating Segment Information Total revenue grew 62.8% in 2020's first three quarters, driven by outdoor and digital advertising's 93.4% increase, while print media advertising declined 56.4% Segment Revenue Details (For the nine months ended September 30, Unit: RMB thousands) | Business Segment | 2020 | 2019 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Print Media Advertising | 314 | 721 | -56.4% | | Outdoor and Digital Advertising | 49,596 | 25,641 | +93.4% | | Film and Entertainment Investment | 7,213 | 7,703 | -6.4% | | Prepaid Card | 15,247 | 10,393 | +46.7% | | Total | 72,370 | 44,458 | +62.8% | Segment (Loss)/Profit Details (For the nine months ended September 30, Unit: RMB thousands) | Business Segment | 2020 | 2019 | | :--- | :--- | :--- | | Print Media Advertising | (897) | (783) | | Outdoor and Digital Advertising | 3,418 | 1,524 | | Film and Entertainment Investment | (5,510) | 489 | | Prepaid Card | 652 | (4,917) | | Total | (2,337) | (3,687) | Note 8 Dividends The Board does not recommend any dividend payment for the nine months ended September 30, 2020, consistent with prior year policy - No dividend payment is recommended for the current reporting period[24] Note 9 Loss Per Share Basic and diluted loss per share expanded to RMB 5.9 cents for the nine months ended September 30, 2020, primarily due to increased loss attributable to owners Loss Per Share Calculation Data | Item | Nine Months Ended Sep 30 (2020) | Nine Months Ended Sep 30 (2019) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousands) | (34,660) | (16,526) | | Weighted Average Number of Ordinary Shares (thousands) | 583,147 | 576,000 | Note 10 Share Capital The company completed a "ten-into-one" share consolidation on June 10, 2020, and placed 115.2 million new shares at HKD 0.079 each on September 14 - On June 10, 2020, the company consolidated every ten shares of US$0.001 par value into one consolidated share of US$0.01 par value[28] - On September 14, 2020, the company successfully placed 115,200,000 shares at HKD 0.079 per share through a placing agent[28] Management Discussion and Analysis Business and Financial Review Overall revenue grew 62.8% to RMB 72.37 million in 2020's first three quarters, with gross margin improving to 13.3%, but total comprehensive expense attributable to owners surged to RMB 37.80 million Key Financial Indicators for the First Three Quarters of 2020 | Indicator | First Three Quarters 2020 | First Three Quarters 2019 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 72,370,000 | RMB 44,458,000 | +62.8% | | Gross Profit | RMB 9,656,000 | RMB 4,586,000 | +110.5% | | Gross Margin | 13.3% | 10.3% | +3.0 p.p. | | Total Comprehensive Expense Attributable to Owners | RMB 37,798,000 | RMB 1,534,000 | +2364% | Segment Business Review Segment performance varied, with outdoor and digital advertising driving 93.4% revenue growth, prepaid cards turning profitable, film and entertainment shifting to loss, and print media declining Print Media Advertising Print media advertising revenue declined 56.4% to RMB 0.314 million due to phasing out, expanding the segment loss margin to 285.7% - Due to the gradual phasing out of this business, print media advertising revenue decreased by 56.4% from approximately RMB 0.721 million in the prior period to approximately RMB 0.314 million in the current period[30] Outdoor and Digital Advertising Revenue for outdoor and digital advertising surged 93.4% to RMB 49.60 million, driven by a new online platform, with profit margin improving to 6.9% - Outdoor and digital advertising revenue significantly increased by 93.4% year-over-year to approximately RMB 49.60 million, primarily attributable to advertising revenue from the new online platform[31] - Segment profit was approximately RMB 3.418 million, with the profit margin improving from 5.9% in the prior period to 6.9%[34] Film and Entertainment Investment Revenue for film and entertainment investment decreased 6.4% to RMB 7.21 million, shifting from a profit of RMB 0.489 million to a loss of RMB 5.51 million due to increased expenses - Film and entertainment business shifted from a segment profit of approximately RMB 0.489 million in the prior period to a loss of approximately RMB 5.51 million in the current period, primarily due to increased promotional and administrative expenses[35] Prepaid Card Prepaid card revenue grew 46.7% to RMB 15.25 million, turning profitable from a RMB 4.92 million loss to a RMB 0.65 million profit - Prepaid card business revenue increased by 46.7% year-over-year, primarily due to higher consumption volumes leading to increased transaction fees and management fees from cards sold in prior years[36] - This business segment shifted from a loss margin of approximately 47.3% in the prior period to a profit margin of approximately 4.3% in the current period, achieving a turnaround to profitability[36] Outlook The Group will focus on digital advertising and prepaid card businesses, anticipating post-COVID-19 opportunities for digital advertising despite challenges to film and entertainment - Future focus will be on developing digital advertising and prepaid card businesses[39] - The Group believes the COVID-19 pandemic presents development opportunities for the digital advertising business, as merchants will more intensively promote their products and services post-pandemic[39] Other Disclosures This section covers corporate governance, shareholdings, share options, and audit committee review, confirming compliance with the Corporate Governance Code - The Board believes the company has complied with the Corporate Governance Code for the nine months ended September 30, 2020[40] - As of September 30, 2020, there were 57,600,000 outstanding share options[52] - The Audit Committee has reviewed the Group's unaudited results for the nine months ended September 30, 2020, and believes they were prepared in compliance with applicable accounting standards and rules[54]