东方明珠(600637) - 2024 Q4 - 年度财报(更正)

Definitions This chapter provides explanations of professional terms and company abbreviations used in the report, offering a foundational understanding for investors - This section clarifies professional terms and company abbreviations, providing a foundational understanding for report readers[11] Company Profile and Core Financial Data This section presents the company's key accounting data and financial indicators, including annual and quarterly performance, and an analysis of non-recurring gains and losses Key Accounting Data and Financial Indicators In 2024, operating revenue decreased by 3.45% to RMB 7.698 billion, while net profit attributable to shareholders increased by 11.11% to RMB 669 million, primarily due to non-recurring gains and losses Key Accounting Data for 2024 | Indicator | 2024 (RMB) | 2023 (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 7,697,919,104.81 | 7,973,350,186.01 | -3.45% | | Net Profit Attributable to Shareholders | 668,712,124.82 | 601,868,659.87 | 11.11% | | Net Profit Attributable to Shareholders After Deducting Non-Recurring Gains and Losses | 263,318,942.68 | 327,826,113.42 | -19.68% | | Net Cash Flow from Operating Activities | 1,004,538,861.35 | 1,637,973,014.55 | -38.67% | | Net Assets Attributable to Shareholders (Period-End) | 29,930,453,764.30 | 29,639,657,077.38 | 0.98% | | Total Assets (Period-End) | 43,581,314,485.45 | 44,139,984,573.04 | -1.27% | Key Financial Indicators for 2024 | Key Financial Indicator | 2024 | 2023 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.1989 | 0.1790 | 11.12% | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (RMB/share) | 0.0783 | 0.0975 | -19.69% | | Weighted Average Return on Net Assets (%) | 2.2470 | 2.0488 | Increased by 0.20 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 0.8848 | 1.1160 | Decreased by 0.23 percentage points | Quarterly Financial Data Quarterly revenue in 2024 showed sequential growth, peaking at RMB 2.51 billion in Q4, though Q4 net profit and non-recurring net profit were negative, while operating cash flow rebounded strongly in Q4 2024 Quarterly Key Financial Data (RMB) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,594,904,179.66 | 1,711,020,402.04 | 1,881,808,024.62 | 2,510,186,498.49 | | Net Profit Attributable to Shareholders | 118,615,608.40 | 304,692,414.51 | 295,459,873.28 | -50,055,771.37 | | Net Profit After Deducting Non-Recurring Gains and Losses | 93,059,533.79 | 254,943,330.41 | 180,146,285.46 | -264,830,206.98 | | Net Cash Flow from Operating Activities | -592,154,270.54 | 294,221,590.53 | 307,342,331.74 | 995,129,209.62 | Non-Recurring Gains and Losses Analysis Total non-recurring gains and losses in 2024 significantly increased to RMB 405 million, primarily driven by entrusted investment gains, fair value changes in financial assets, and a RMB 136 million reversal of inventory impairment provisions Key Non-Recurring Gains and Losses Items for 2024 (RMB) | Non-Recurring Gains and Losses Item | 2024 Amount | | :--- | :--- | | Gains/Losses from Entrusted Investment or Asset Management | 154,810,112.19 | | Other Gains/Losses Defined as Non-Recurring | 137,126,412.98 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | 128,462,688.60 | | Government Grants | 71,260,278.66 | | Total | 405,393,182.14 | - Among other non-recurring items, RMB 136 million primarily resulted from the reversal of inventory impairment provisions due to a settlement with a client regarding historical film and television business[25] Management Discussion and Analysis (MD&A) This section provides management's discussion and analysis of the company's industry landscape, business operations, core competencies, financial performance, investment activities, and future outlook and risks Industry Landscape and Operating Environment The company's industries are undergoing profound transformation, with media and smart broadcasting embracing digital and intelligent integration, while the consumer sector, particularly culture and tourism, shows robust growth driven by digital technology - Mainstream media faces systemic transformation, with national policies promoting integrated media systems emphasizing digitalization, networking, and intelligent trends[29] - The smart broadcasting industry ecosystem is optimizing, with national IPTV users reaching a record 408 million by the end of 2024, and rapid growth in broadcasting 5G services[30] - The consumer sector, especially culture, tourism, exhibitions, and performances, continues to thrive, with domestic tourism increasing by 14.8% in 2024 and deepening integration with digital technologies[31] Company's Main Business Overview The company's main businesses are Smart Broadcasting, including integrated media and 5G services, and Cultural Consumption, leveraging landmark resources for tourism, retail, and cultural real estate, forming an online-offline integrated value chain - Smart Broadcasting Business: Encompasses integrated media (cable TV, IPTV, OTT, content production/distribution, gaming) and smart broadcasting 5G services, aiming for a full-service operator transformation[32][33] - Cultural Consumption Business: Includes cultural tourism (Oriental Pearl TV Tower, Mercedes-Benz Arena operations), video retail, and cultural real estate (industrial park development/operation), catering to quality lifestyle demands[32][33] Core Competitiveness Analysis The company's core competencies include an integrated online-offline value chain, unique Shanghai cultural tourism landmarks, comprehensive multi-platform operating licenses, extensive channel traffic entry points, 804 intellectual property rights for media convergence, and strong synergistic support from its controlling shareholder - The company boasts a full industry chain layout, integrating online (hundreds of millions of users) and offline (tens of millions of reception capacity) resources for seamless multi-screen and online-offline connectivity[35][36][39] - The company possesses rare landmark cultural tourism resources in Shanghai, such as the Oriental Pearl TV Tower and Mercedes-Benz Arena, forming strong market competitive barriers[37] - The company holds comprehensive operating licenses, including national licenses for IPTV, internet TV, digital pay TV, and mobile TV[38] - The company has deep technological R&D accumulation, holding 804 intellectual property rights, including 170 patents and 634 software copyrights, actively leveraging AI and big data to empower its businesses[40] 2024 Annual Operating Performance Review In 2024, the company achieved RMB 7.698 billion in revenue and RMB 669 million in net profit attributable to shareholders, driven by growing Smart Broadcasting user bases and cultural consumption business innovations including new cultural real estate projects 2024 Key Operating Data | Business Segment | Key Indicator | 2024 Status | | :--- | :--- | :--- | | Integrated Media | IPTV Users | Over 61 million users | | | OTT Users | Over 110 million users | | Smart Broadcasting 5G | 5G Users | Over 2.35 million users | - In content creation, the dance drama film 'The Eternal Wave' premiered at the Shanghai International Film Festival, and several series like 'Zichuan: Three Bright Heroes' were broadcast[74] - Significant progress was made in cultural real estate, with key projects like Oriental Smart Media City and Lingang Film Base becoming operational, the former positioned as a national-level audio-visual industry cluster and AI ecosystem base[79] - The company accelerates digital capability building, implementing AI and big data technologies across integrated media, smart broadcasting, retail, and tourism business lines[80] Income Statement and Cash Flow Statement Analysis Revenue declined due to lower IPTV settlement prices and fewer real estate deliveries, while operating costs rose from 5G expansion; operating cash flow significantly decreased by 38.67% due to reduced collections, and both investing and financing cash outflows expanded 2024 Income Statement and Cash Flow Statement Key Item Changes | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 7,697,919,104.81 | 7,973,350,186.01 | -3.45 | Decrease in IPTV business settlement unit price, reduction in retail and real estate business revenue | | Operating Cost | 5,537,952,702.52 | 5,415,270,517.64 | 2.27 | Increase in costs due to expansion of Smart Broadcasting 5G business | | R&D Expenses | 217,529,919.68 | 190,181,357.71 | 14.38 | Increase in R&D personnel labor costs and equipment leasing fees | | Net Cash Flow from Operating Activities | 1,004,538,861.35 | 1,637,973,014.55 | -38.67 | Decrease in cash collection from IPTV, retail, and real estate businesses | | Net Cash Flow from Investing Activities | -4,723,050,119.01 | -1,347,135,539.50 | Not Applicable | Increase in wealth management of idle funds, equity investments, and long-term asset investments | | Net Cash Flow from Financing Activities | -1,628,365,906.23 | -180,831,162.84 | Not Applicable | Increase in repayment of bank loans year-on-year | Segment Revenue and Cost Analysis Smart Broadcasting revenue slightly increased by 0.36% but gross margin declined by 2.86 percentage points, while Cultural Consumption revenue decreased by 12.05% with a 4.00 percentage point gross margin drop, primarily due to a 34.15% revenue decline and 25.45 percentage point gross margin plunge in cultural real estate 2024 Main Business Segment Performance (RMB 10,000) | Segment | Operating Revenue (RMB 10,000) | Revenue YoY (%) | Gross Margin (%) | Gross Margin YoY Change (pp) | | :--- | :--- | :--- | :--- | :--- | | Smart Broadcasting Business | 522,864.09 | 0.36% | 21.29% | -2.86 | | Integrated Media Business | 175,265.37 | -16.33% | 25.91% | -6.96 | | Smart Broadcasting 5G Business | 347,598.72 | 11.57% | 18.97% | +0.68 | | Cultural Consumption Business | 212,840.88 | -12.05% | 46.32% | -4.00 | | Cultural Tourism Business | 146,760.38 | 0.35% | 48.66% | +1.95 | | Retail Business | 32,721.63 | -27.44% | 61.33% | -4.72 | | Cultural Real Estate Business | 33,358.87 | -34.15% | 21.32% | -25.45 | R&D Investment Analysis In 2024, total R&D investment was RMB 218 million, fully expensed, increasing by 14.38% and representing 2.83% of revenue, focusing on media convergence, 5G, digital transformation, and AI applications, supported by 519 R&D personnel 2024 R&D Investment Overview | Indicator | Amount/Ratio | | :--- | :--- | | Expensed R&D Investment (RMB) | 217,529,919.68 | | Total R&D Investment (RMB) | 217,529,919.68 | | R&D Investment as % of Revenue | 2.83% | | Number of R&D Personnel (persons) | 519 | | % of R&D Personnel | 8.21% | - Key R&D areas include: advancing media convergence (e.g., 'Broadcasting + Education'), 5G network construction, digital transformation of cultural consumption (e.g., Oriental Pearl Tower smart entity), technical security, and AIGC technology upgrades[94][95][96] Investment Status Analysis New external equity investments totaled RMB 915 million, up 52.75%, including RMB 600 million in Shanghai Oriental Dragon New Media and RMB 315 million in Shanghai Oriental Smart Media City Economic Development, while the company terminated the Gaia Interactive overseas listing plan; fair value financial assets totaled RMB 9.636 billion at year-end - The company invested an additional RMB 600 million in associate Shanghai Oriental Dragon New Media Co., Ltd., strengthening its mobile product layout, with its stake increasing to 48.8883% post-investment[109][110][111] - The company invested RMB 315 million with other parties to establish Shanghai Oriental Smart Media City Economic Development Co., Ltd., holding a 50% stake for industrial park development and operation[111] - The company ceased efforts to advance Gaia Interactive's equity restructuring for overseas listing and initiated litigation over equity transfer disputes, with a claim amount of approximately RMB 1.184 billion[245][246] Period-End Key Financial Assets Measured at Fair Value (RMB 10,000) | Asset Category | Period-End Book Value (RMB 10,000) | | :--- | :--- | | Stocks | 111,177.19 | | Private Equity Funds | 14,722.87 | | Other (primarily bank wealth management products) | 837,676.67 | | Total | 963,576.73 | Future Development Outlook and Risks The company aims to become a leading digital cultural media service group, focusing on Smart Broadcasting and Cultural Consumption, advancing media convergence, 5G, and digital upgrades, while identifying key risks including macroeconomic fluctuations, regulatory changes, market competition, technological upgrades, talent loss, and intellectual property infringement - Development Strategy: Focus on Smart Broadcasting and Cultural Consumption, building new productive forces through digital transformation to enhance core business capabilities, improve digital efficiency, and achieve sustained economic growth[135] - Operating Plan: In 2025, focus on media convergence innovation, enhancing 5G network capabilities, developing the live streaming economy, deepening digital upgrades for cultural tourism, and fostering industrial ecosystems for cultural real estate[139][142][144][145][146] - Key Risks: The company faces multiple risks including macroeconomic fluctuations, regulatory changes, intensified market competition, technological upgrades, talent loss, and intellectual property infringement[151][152][153][154][155][156] Corporate Governance This section details the company's corporate governance structure, shareholder meeting activities, changes in directors, supervisors, and senior management, and the proposed profit distribution plan Overview of Corporate Governance During the reporting period, the company strictly adhered to laws and regulations, continuously improving its corporate governance structure, ensuring compliance in shareholder relations, board and supervisory board operations, information disclosure, and maintaining independence in assets, personnel, finance, organization, and business - The company's corporate governance structure is robust, complying with relevant laws and regulations across shareholder relations, board and supervisory board functions, and information disclosure[159][160][161] - The company maintains 'five separations and five independences' from its controlling shareholder in assets, personnel, finance, organization, and business, ensuring its independence as a listed company[163] Shareholder Meeting Convening Status During the reporting period, the company convened three shareholder meetings, including two extraordinary general meetings and one annual general meeting, approving significant proposals such as related party transactions, profit distribution, governance rule revisions, and auditor changes - The company held three shareholder meetings on April 3, June 17, and December 10, 2024[164] Directors, Supervisors, and Senior Management Status During the reporting period, there were changes in directors, supervisors, and senior management, with Chairman Shen Jun, Vice Chairman and President Liu Xiaofeng, and Director Zhong Jing departing due to work reassignments, and Vice President Tian Peijie resigning; Mr. Song Jiongming was elected as the new Chairman, and several senior executives increased their shareholdings, demonstrating confidence in the company's future - Significant personnel changes occurred during the reporting period: Chairman Shen Jun, Vice Chairman and President Liu Xiaofeng, and Director Zhong Jing resigned, and Song Jiongming was elected as the new Chairman[178][179] - Several senior executives increased their company shareholdings through the secondary market during and after the reporting period, totaling over 220,000 shares[167][168] Profit Distribution Plan The company proposed a 2024 profit distribution plan of RMB 1.80 cash dividend per 10 shares (tax inclusive), totaling RMB 605 million, representing 90.49% of net profit attributable to shareholders, demonstrating a strong commitment to shareholder returns, with an additional interim dividend planned for 2025 2024 Profit Distribution Plan | Item | Amount/Ratio | | :--- | :--- | | Cash Dividend Per 10 Shares (RMB) (tax inclusive) | 1.80 | | Total Cash Dividend (RMB) (tax inclusive) | 605,141,967.06 | | Cash Dividend as % of Net Profit Attributable to Shareholders | 90.49% | - The company plans an additional interim dividend during the 2025 semi-annual or Q3 report disclosure period, with the interim dividend capped at 100% of net profit attributable to shareholders for the respective period[195] Environmental, Social, and Governance (ESG) This section outlines the company's commitments and actions in environmental protection, social responsibility initiatives, and contributions to rural revitalization efforts Environmental Responsibility The company prioritizes environmental protection, investing RMB 100,000 in 2024, reducing carbon emissions by optimizing IDC cabinet configurations and enhancing office energy management, resulting in a 2 million kWh reduction in electricity consumption and 840 tons of CO2 emissions, earning government energy-saving awards - Through optimizing IDC cabinet configurations and enhancing cloud storage, the company reduced annual electricity consumption by approximately 2 million kWh, equivalent to a 840-ton reduction in carbon dioxide emissions[206] - The company was recognized as an advanced energy-saving unit by the Xuhui District Development and Reform Commission for its outstanding energy conservation efforts, receiving a government award of RMB 90,000[205] Social Responsibility The company actively fulfills social responsibilities with an annual investment of RMB 208,400, benefiting over 2,600 people through initiatives like accessible audio-visual platforms, senior care programs, and hosting numerous public welfare events at landmark venues, including free access for military personnel - The company developed a high-quality accessible audio-visual TV service platform, leveraging AI to enhance the user experience for people with disabilities, helping to bridge the 'audio-visual information gap'[208] - Focusing on the silver economy, the company hosted the '2024 Silver Lifestyle Festival,' completed aging-in-place renovations for 809 households, and launched the 'Elderly Club' mini-program, providing one-stop lifestyle services for seniors[209][210] - The company utilized its landmark resources to host 15 public welfare events, waiving RMB 9.95 million in venue fees, and provided free admission for active military personnel and martyrs' families, totaling approximately RMB 6.59 million[217] Rural Revitalization The company actively contributes to rural revitalization with an annual investment of RMB 13.452 million, benefiting over 45,000 people; its subsidiary Oriental Cable invested over RMB 13.4 million in suburban network and smart village projects, while Oriental Digital Shopping facilitated RMB 52.751 million in agricultural and cultural tourism product sales - Its subsidiary, Oriental Cable, invested over RMB 13.4 million in smart village top-level design and digital infrastructure construction, providing high-quality network products and services to villages and towns[227] - Through industrial poverty alleviation, the Oriental Digital Shopping rural revitalization project helped local enterprises sell agricultural and cultural tourism products, achieving sales of RMB 52.751 million[226] Significant Matters This section covers significant events including major related party transactions, the status of significant contracts, and the company's external guarantees and wealth management activities Significant Related Party Transactions During the reporting period, the company experienced multiple significant related party transactions, including a joint capital increase of RMB 600 million with its controlling shareholder in Shanghai Oriental Dragon New Media Co., Ltd., followed by the company waiving its pre-emptive right, diluting its stake to 33.8504%, and ongoing financial service transactions with an affiliated finance company - The company and its controlling shareholder jointly invested in Shanghai Oriental Dragon New Media Co., Ltd., with the company contributing RMB 600 million, resulting in a 48.8883% stake post-investment[241][242] - The company waived its pro-rata pre-emptive right for subsequent capital increases in Shanghai Oriental Dragon New Media Co., Ltd., resulting in its stake decreasing to 33.8504% after the capital increase[243] - The company continues to conduct financial business with its related party, Shanghai Media Group Finance Co., Ltd., with deposit balances of RMB 1.484 billion and loan balances of RMB 278 million at period-end[253][745] Significant Contracts and Performance At period-end, the company's external guarantees totaled RMB 130 million, primarily for subsidiaries; it actively managed idle funds, with RMB 7.82 billion in outstanding bank wealth management products and RMB 199 million in outstanding entrusted loans Period-End Guarantee Status | Guarantee Type | Total Guarantee Amount (RMB) | % of Company's Net Assets | | :--- | :--- | :--- | | Guarantees for Subsidiaries | 130,050,000.00 | 0.43% | Period-End Entrusted Wealth Management and Loan Status | Item | Outstanding Balance (RMB) | | :--- | :--- | | Bank Wealth Management Products | 7,820,000,000.00 | | Entrusted Loans | 199,000,000.00 | Share Changes and Shareholder Structure This section details changes in the company's share capital, the total number of shareholders, and the composition of its major shareholders and actual controller Share Capital Change Status During the reporting period, the company's total share capital decreased from 3.415 billion shares to 3.362 billion shares, primarily due to the cancellation of 52,600,384 previously repurchased shares in February 2024 - The company's total share capital decreased from 3,414,500,201 shares to 3,361,899,817 shares, a reduction of 52,600,384 shares[269] - The decrease in share capital was due to the company canceling all shares in its dedicated repurchase securities account[270][271] Shareholders and Actual Controller As of the reporting period end, the company had 136,416 shareholders; its controlling shareholder is Shanghai Media Group Co., Ltd. with a 46.69% stake, and the actual controller is Shanghai State-owned Assets Supervision and Administration Commission, with other top shareholders including Hong Kong Securities Clearing Company and Central Huijin Top Five Shareholders' Holdings as of Report End | Shareholder Name | Number of Shares Held (shares) | % of Total Share Capital | | :--- | :--- | :--- | | Shanghai Media Group Co., Ltd. | 1,569,830,431 | 46.69% | | Hong Kong Securities Clearing Company Limited | 47,053,950 | 1.40% | | Central Huijin Asset Management Co., Ltd. | 33,748,834 | 1.00% | | CSI 500 ETF | 28,285,457 | 0.84% | | Shanghai Jiushi Sports Asset Management Co., Ltd. | 22,551,658 | 0.67% | - The company's controlling shareholder is Shanghai Media Group Co., Ltd., and its actual controller is the Shanghai State-owned Assets Supervision and Administration Commission[278][279] Preferred Shares Status The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[285] Bonds Status The company had no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - The company had no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period[287] Financial Report This section presents the company's audited financial statements, including the audit opinion and key audit matters identified by the independent auditor Audit Report Tianjian Certified Public Accountants issued a standard unqualified audit opinion on the company's 2024 financial statements, with key audit matters identified as revenue recognition and goodwill impairment - Audit Opinion Type: Standard Unqualified Opinion[289] - Key Audit Matter 1: Revenue Recognition. Reason: Operating revenue is a key performance indicator, with inherent risk of management inappropriately recognizing revenue to achieve specific targets. Audit Response: Understand and test internal controls, examine sales contracts, perform analytical procedures, detail testing, and cut-off testing[291] - Key Audit Matter 2: Goodwill Impairment. Reason: Goodwill is material (period-end book value of RMB 299 million), and impairment testing involves significant management judgment. Audit Response: Understand and test internal controls, review cash flow forecasts, assess external appraiser capabilities, and review appraisal reports and key assumptions[291][292][293]