Financial Performance - For the six months ended June 30, 2021, the company's revenue was RMB 155.3 million, a decrease of 39.5% compared to RMB 256.7 million in the same period of 2020[11]. - Gross profit for the same period was RMB 37.7 million, down 56.9% from RMB 87.6 million year-on-year[11]. - Profit attributable to equity shareholders was RMB 12.5 million, reflecting a 77.0% decrease from RMB 54.3 million in the previous year[11]. - Adjusted profit attributable to equity shareholders, excluding listing expenses, was also RMB 12.5 million, a decline of 80.5% compared to RMB 64.2 million in 2020[11]. - Basic and diluted earnings per share were RMB 0.04, down 83.3% from RMB 0.24 in the same period last year[11]. - Total comprehensive income for the period was RMB 11,477 thousand, compared to RMB 54,156 thousand in the same period last year, reflecting a decrease of 78.8%[125]. - Operating profit decreased to RMB 13,880 thousand, a decline of 77.6% from RMB 61,980 thousand in the previous year[125]. - The company reported a basic earnings per share of RMB 0.0417 for the six months ended June 30, 2021, compared to RMB 0.2370 for the same period in 2020, reflecting a significant decrease[179]. Revenue Sources - Revenue from purchased television drama broadcasting rights decreased by approximately 42.0% from RMB 253.7 million to RMB 147.2 million, primarily due to a reduction in the number of purchased dramas[36]. - Revenue from self-produced television drama broadcasting rights decreased by approximately 94.1% from RMB 3.0 million to RMB 0.2 million, due to scheduling and pricing issues[32]. - The company generated approximately RMB 121.0 million from the only purchased drama "The Ideal Life of Love" during the reporting period[36]. - Revenue from self-produced TV series was RMB 178,000, while revenue from purchased TV series was RMB 147,155,000 for the six months ended June 30, 2021, resulting in total revenue of RMB 155,258,000, a decrease of 39.5% from RMB 256,744,000 in the same period of 2020[158][167]. Cost and Expenses - Other income decreased by 71.0% from RMB 5.0 million to RMB 1.5 million, mainly due to a reduction in government subsidies[51]. - The cost of sales decreased by approximately 30.5% from RMB 169.2 million to RMB 117.5 million, primarily due to a reduction in costs associated with purchased television drama broadcasting rights[40]. - Sales and marketing expenses increased approximately 340.0% from RMB 0.5 million for the six months ended June 30, 2020, to RMB 2.0 million for the six months ended June 30, 2021, primarily due to an increase in marketing and promotional expenses of RMB 1.2 million[52]. - Administrative expenses rose approximately 53.1% from RMB 7.6 million for the six months ended June 30, 2020, to RMB 11.7 million for the six months ended June 30, 2021, mainly driven by an increase in employee costs and remuneration expenses of RMB 2.3 million[55]. Assets and Liabilities - As of June 30, 2021, the company's cash and bank deposits were approximately RMB 101.0 million, down from RMB 185.7 million as of December 31, 2020[71]. - The company's net current assets increased to approximately RMB 540.0 million as of June 30, 2021, compared to RMB 531.0 million as of December 31, 2020[71]. - Total liabilities decreased to RMB 534,041 thousand from RMB 612,995 thousand as of December 31, 2020[130]. - The company's equity attributable to shareholders increased to RMB 566,381 thousand from RMB 554,904 thousand at the end of 2020[130]. - Trade receivables as of June 30, 2021, amounted to RMB 420,235, down 20% from RMB 525,367 as of December 31, 2020, with an increase in loss provisions to RMB 69,862 from RMB 58,213[189]. - Cash and cash equivalents as of June 30, 2021, totaled RMB 49,385, a decrease of 63.0% from RMB 133,504 as of December 31, 2020[196]. Strategic Initiatives - Future business strategies will focus on expanding self-produced drama licensing and diversifying drama types and themes[17]. - The company plans to enhance market research and expand its script and intellectual property reserves in response to strengthened copyright protection in China[18]. - Management remains confident in the future development of the business despite the competitive environment[25]. - The company plans to allocate 50.0% of the net proceeds (approximately RMB 76.0 million) for producing self-made television dramas[89]. Shareholder Information - The board of directors does not recommend the distribution of an interim dividend for the six months ended June 30, 2021, consistent with 2020[97]. - Mr. Yuan Li holds a controlled corporation interest of 68,282,350 shares, representing approximately 22.76% of the company[103]. - Ms. Tian Tian holds a controlled corporation interest of 64,380,501 shares, representing approximately 21.46% of the company[103]. - Joint Fortune Huayi holds 19,806,339 shares, representing approximately 6.60% of the company[111]. Compliance and Governance - The company has established an audit committee consisting of two independent non-executive directors and one non-executive director, with the chairman being Mr. Liu Hanlin[95]. - The audit committee reviewed the interim results for the six months ended June 30, 2021, and confirmed compliance with applicable accounting standards[95]. - There were no changes in the information of directors or senior management that require disclosure under the listing rules[98].
力天影业(09958) - 2021 - 中期财报