恒信东方(300081) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The Board of Directors, Supervisory Committee, and senior management guarantee the authenticity, accuracy, and completeness of the semi-annual report, with no planned profit distribution for the period - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report's content[3] - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[4] Table of Contents This section outlines the structure of the semi-annual report, including key chapters such as company profile, management discussion, corporate governance, and financial statements List of Documents for Inspection This section lists the documents available for inspection, including the semi-annual report signed by the Chairman and financial statements signed by key personnel - The 2025 semi-annual report text signed by Chairman Mr. Meng Nan[8] - Financial report text signed and sealed by the company's legal representative Mr. Meng Nan, person in charge of accounting Mr. Yuan Hui, and head of the accounting department Mr. Yuan Hui[8] - Originals of all company documents and announcements publicly disclosed on the CSRC's designated websites during the reporting period[8] Definitions This section defines common terms and abbreviations used in the report, covering the reporting period, company name, and key technologies like VR, AR, AI, and AIGC - The reporting period refers to January 1, 2025, to June 30, 2025[9] - VR refers to Virtual Reality[9] - AI refers to Artificial Intelligence[9] Company Profile and Key Financial Indicators I. Company Profile The company, with stock code 300081 and named Hifun Media, is listed on the Shenzhen Stock Exchange with Meng Nan as its legal representative - Stock Abbreviation: Hifun Media, Stock Code: 300081[11] - Stock Exchange Listing: Shenzhen Stock Exchange[11] - Company's Legal Representative: Meng Nan[11] II. Contacts and Contact Information The company's Board Secretary is Gong Zeru and the Securities Affairs Representative is Li Wenchao, both located in Beijing - Board Secretary: Gong Zeru, Securities Affairs Representative: Li Wenchao[12] - Contact Address: 101, 1st Floor, Building 3, No. 2 Cangjingguan Hutong, Dongcheng District, Beijing[12] III. Other Information During the reporting period, the company's registered address, office address, website, email, and information disclosure locations remained unchanged - The company's registered address, office address, postal code, website, and email address did not change during the reporting period[13] - Information disclosure and document repository locations remained unchanged during the reporting period[14] - The company's registration details remained unchanged during the reporting period[16] IV. Key Accounting Data and Financial Indicators Operating revenue increased by 12.26% year-on-year, but net profit and operating cash flow declined, alongside a reduction in total and net assets Key Accounting Data and Financial Indicators | Indicator | Current Period | Prior Year Period | Change YoY | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 184,736,007.61 | 164,563,004.59 | 12.26% | | Net Profit Attributable to Shareholders (Yuan) | -96,027,674.76 | -78,487,556.73 | -22.35% | | Net Cash Flow from Operating Activities (Yuan) | -61,632,624.80 | -46,713,899.27 | -31.94% | | Basic Earnings Per Share (Yuan/Share) | -0.1588 | -0.1298 | -22.34% | | Total Assets (Yuan) | 1,804,832,832.62 | 1,833,938,795.20 | -1.59% | | Net Assets Attributable to Shareholders (Yuan) | 1,115,268,008.87 | 1,204,230,352.18 | -7.39% | V. Differences in Accounting Data under Domestic and Foreign Accounting Standards There were no discrepancies in net profit or net assets between financial reports prepared under Chinese accounting standards and international or foreign accounting standards - The company has no discrepancies in net profit and net assets between financial reports disclosed under IFRS and Chinese Accounting Standards[18] - The company has no discrepancies in net profit and net assets between financial reports disclosed under foreign accounting standards and Chinese Accounting Standards[19] VI. Non-recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled 1,140,361.71 Yuan, primarily from asset disposals, government grants, and other non-operating income and expenses Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | Description | | :--- | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 485,803.16 | Mainly gains/losses from the disposal of fixed assets and equity | | Government Grants Recognized in Current Profit or Loss | 363,983.58 | Mainly various government subsidies received | | Other Non-operating Income and Expenses | 277,533.03 | Mainly litigation losses, labor compensation, asset retirement losses, and late fees | | Other Items Meeting the Definition of Non-recurring Gains and Losses | 25,775.24 | Mainly direct tax exemptions | | Less: Income Tax Impact | 711.82 | | | Minority Interest Impact (After Tax) | 12,021.48 | | | Total | 1,140,361.71 | | Management Discussion and Analysis I. Principal Business Activities During the Reporting Period The company's revenue grew 12.26% driven by internet video services, but net profit fell 22.64% due to gross margin adjustments in certain business segments - The company continues to advance its digital creative industry development strategy driven by "Artistic Creativity + Visual Technology"[31] - The business scope mainly includes digital creative product applications and services, internet video application products and services, and computing power system integration and technical services[31] - Revenue from the internet video application products and services business grew, driving an overall increase in the company's sales revenue year-on-year[51] (I) Industry Development The digital creative industry received strong policy support in 2025, accelerating VR/XR/AI industrialization and driving significant growth in intelligent video and computing markets - In 2025, a series of domestic policies were introduced to promote the development of Virtual Reality (VR), Extended Reality (XR), and Artificial Intelligence (AI) technologies[25] - According to industry forecasts, the compound annual growth rate of the intelligent video application market size will exceed 20% from 2025 to 2028[27] - The global intelligent computing market is expected to exceed $500 billion in 2025, with a compound annual growth rate (CAGR) of over 30%[28] (II) Company's Principal Business Activities Hifun Media focuses on digital cultural creativity and content production, with business segments in digital creative products, internet video applications, and computing system integration - Hifun Media is a company primarily engaged in digital cultural creativity, content production, and technical services[31] - The company continues to advance its digital creative industry development strategy driven by "Artistic Creativity + Visual Technology"[31] - During the reporting period, the business scope mainly included digital creative product applications and services, internet video application products and services, and computing power system integration and technical services[31] (III) Main Products and Their Uses The company's products include LBE entertainment, VR/CG content, AI platforms, internet video solutions, and AICC system integration and computing services - The company's digital creative product applications and services mainly include LBE urban new entertainment business, VR/CG content production and application, and AI family fun platform application product business[32] - In VR entertainment, the company's self-developed fantasy Roguelite action VR gesture interaction game "Drakheir" has accumulated approximately 44,000 purchases and downloads[35] - The end products of the company's internet video application products and services business mainly include small monitoring equipment for the home customer market, medium-sized monitoring equipment for enterprise-level customers, and large heavy-duty monitoring equipment for vertical industry customers[39] - The company's computing power system integration and technical services mainly include the construction of AI computing center hardware infrastructure and software platforms, as well as computing power operation services[41] (IV) Business Model The company offers full-chain LBE services, monetizes VR/CG content, sells AI platform products, and provides internet video and computing solutions through various models - The company's LBE projects are mainly positioned in the new cultural tourism, new cultural entertainment, and new commercial fields, providing one-stop services across the entire industry chain with diverse profit models[45] - The production process for VR and CG content involves creating original narrative ideas or reaching licensing agreements with original IP rights holders to form commercially distributable film, educational content, or interactive game works[46] - Anhui Saida's internet video application product and service business model is mainly divided into terminal procurement for operators, system integration for the government, and cooperative operation with operators[49] - The company's computing power system integration and technical services provide integrated hardware and software AICC solutions and computing power operation services to local governments, state-owned enterprises, and listed companies[50] (V) Key Performance Drivers Revenue grew 12.26% to 184.74 million Yuan driven by internet video services, but net profit after non-recurring items fell 22.64% due to margin adjustments - During the reporting period, the company achieved operating revenue of 184.736 million Yuan, a year-on-year increase of 12.26%[51] - Net profit attributable to shareholders after deducting non-recurring gains and losses was -97.168 million Yuan, a year-on-year decrease of 22.64%[51] - Revenue from the internet video application products and services business grew, driving an overall increase in the company's sales revenue year-on-year[51] - The year-on-year decrease in net profit attributable to shareholders after deducting non-recurring gains and losses was mainly affected by phased adjustments in the gross profit margins of some business segments51 II. Core Competitiveness Analysis The company's core strengths lie in its R&D capabilities, extensive IP portfolio, high-quality VR/XR content production, and strategic partnerships - The company has always insisted on continuous R&D innovation as the core driving force for development and has a strong technological advantage in the digital creative industry[53] - As of the end of the reporting period, the company held 90 invention patents, 7 utility model patents, 8 design patents, 432 computer software copyrights, and 293 works[54] - The company has formed strategic partnerships with several well-known enterprises in the film and television creation, visual effects, and virtual reality fields, such as Weta Workshop, Pukeko Pictures, and The Virtual Reality Company (VRC)[60] - The company's IP is divided into four major categories: children's, film and television, VR film and game, and VR book[62] III. Main Business Analysis Revenue grew 12.26%, but a 31.50% rise in operating costs squeezed profitability, with internet video services becoming the main revenue driver despite falling margins Changes in Key Financial Data Year-on-Year | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 184,736,007.61 | 164,563,004.59 | 12.26% | | | Operating Costs | 172,463,612.62 | 131,149,762.01 | 31.50% | Costs increased with revenue; cost growth outpaced revenue growth due to intensified competition | | Selling Expenses | 46,800,953.13 | 49,272,961.44 | -5.02% | | | Administrative Expenses | 32,155,835.33 | 40,723,842.62 | -21.04% | | | R&D Investment | 31,134,365.31 | 39,314,086.15 | -20.81% | | | Net Cash Flow from Operating Activities | -61,632,624.80 | -46,713,899.27 | -31.94% | Mainly due to a decrease in cash received from sales of goods and services compared to the prior year period | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue | Operating Costs | Gross Margin | Revenue YoY Change | Cost YoY Change | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Digital Creative Product Application & Services | 8,998,836.45 | 7,014,117.36 | 22.06% | -67.29% | -69.32% | 5.14% | | Internet Video Application Product & Services | 172,756,328.71 | 161,066,282.29 | 6.77% | 27.36% | 49.18% | -13.63% | | Computing System Integration & Technical Services | 2,492,202.31 | 4,061,377.21 | -62.96% | 143.59% | | -162.96% | IV. Non-Core Business Analysis Non-core business activities impacted total profit, with investment income of 1.15 million Yuan, credit impairment loss of -10.05 million Yuan, and asset impairment loss of -0.68 million Yuan Non-Core Business Analysis | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,152,985.43 | -1.10% | Mainly investment income from associates and gains on equity disposal | No | | Asset Impairment | -679,697.70 | 0.65% | Mainly inventory impairment loss | No | | Credit Impairment | -10,046,909.84 | 9.58% | Mainly impairment loss on receivables | No | V. Analysis of Assets and Liabilities Total assets and net assets decreased by 1.59% and 7.39% respectively, with significant changes in fixed assets and long-term payables due to project cost capitalization Significant Changes in Asset Composition | Item | Closing Balance (Yuan) | % of Total Assets | Opening Balance (Yuan) | % of Total Assets | Change in % | Reason for Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 84,974,948.96 | 4.71% | 147,582,477.30 | 8.05% | -3.34% | Mainly due to debt repayment during the reporting period | | Inventories | 407,058,611.24 | 22.55% | 586,873,142.89 | 32.00% | -9.45% | Mainly due to the transfer of Pingtan project contract costs to fixed assets | | Fixed Assets | 278,356,502.63 | 15.42% | 56,870,587.65 | 3.10% | 12.32% | Mainly due to the transfer of Pingtan project contract costs to fixed assets | | Short-term Borrowings | 52,024,126.92 | 2.88% | 96,223,832.44 | 5.25% | -2.37% | Mainly due to the repayment of matured short-term borrowings | | Contract Liabilities | 102,033,079.67 | 5.65% | 283,595,101.91 | 15.46% | -9.81% | Mainly due to a decrease in advances received from customers | | Long-term Payables | 362,524,462.97 | 20.09% | | 0.00% | 20.09% | Mainly due to the recognition of long-term payables for annual payments for the Pingtan project | Major Overseas Assets | Asset Description | Asset Size (Yuan) | Location | Operating Model | Income (Yuan) | % of Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | The Virtual Reality Company (VRC) | 22,959,397.13 | USA | VR and CG content production | -43,519.13 | 2.06% | | Pukeko Pictures Limited Partnership | 9,092,496.15 | New Zealand | Children's cultural and artistic works creation, theme venue design | -967,093.90 | 0.82% | - As of the end of the reporting period, the company's total restricted assets amounted to 46,698,968.03 Yuan, mainly comprising frozen funds, security deposits, and fixed assets pledged for short-term borrowings[76] VI. Investment Analysis Investment was zero, down 100% YoY, while several fundraising projects underperformed or were terminated, and one project's completion was delayed to late 2025 - The investment amount for the reporting period was 0.00 Yuan, compared to 1,000,000.00 Yuan in the same period last year, a change of -100.00%[77] - As of the end of the reporting period, a cumulative total of 675.1408 million Yuan of raised funds had been used[82] - The "VR Venue Operation Center Project" was terminated due to lower-than-expected economic benefits and market changes[85] - The "AI Computing Center Platform Construction and Operation Project" and the "VR Digital Asset Production Project" failed to achieve their promised returns[85] - The scheduled completion date for the "Digital Immersive Application Scene Content Development Project" has been postponed to December 31, 2025[88] VII. Major Asset and Equity Sales No major sales of assets or equity occurred during the reporting period - The company did not sell any major assets during the reporting period[92] - The company did not sell any major equity during the reporting period[93] VIII. Analysis of Major Holding and Participating Companies Anhui Saida Technology was a standout performer with 173 million Yuan in revenue, while the company sold one subsidiary and deregistered another during the period Major Subsidiaries and Investees with >10% Impact on Net Profit | Company Name | Type | Main Business | Registered Capital (10k Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Oriental Dreamworks VR Tech Co., Ltd. | Subsidiary | Technology development, software development, etc. | 10,000 | 44,657,936.09 | -4,385,053.23 | 740,724.71 | -8,549,434.62 | -8,577,588.42 | | Oriental Dreamworks Cultural Industry Investment Co., Ltd. | Subsidiary | Project investment, film & TV production | 7,800 | 324,361,868.02 | 141,224,167.93 | 19,006,399.47 | 3,610,397.30 | 3,880,040.58 | | Beijing Huakai Film Production Co., Ltd. | Subsidiary | Film production | 1,250 | 60,697,524.45 | 56,392,048.13 | 2,267,232.89 | 3,880,040.58 | 3,880,040.58 | | Anhui Saida Technology Co., Ltd. | Subsidiary | IoT technology R&D, software development | 5,000 | 423,510,990.18 | 159,895,910.58 | 172,756,328.71 | 21,305,487.68 | 21,102,537.58 | | Sichuan Hifun AI Technology Co., Ltd. | Subsidiary | Technical services, AI system integration | 10,000 | 127,608,767.41 | -19,741,548.22 | 1,408,680.09 | -4,596,554.47 | -4,307,784.56 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition/Disposal | Impact on Overall Production, Operation, and Performance | | :--- | :--- | :--- | | Guangzhou Hifun Future Digital Technology Co., Ltd. | Sale | Impacted net profit attributable to parent by 263,002.99 Yuan | | Dongfang Xinwei Zhisuan (Beijing) Technology Co., Ltd. | Deregistration | 0 | IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not have any controlled structured entities during the reporting period[99] X. Company's Risks and Countermeasures The company faces risks from economic conditions, competition, technology iteration, and potential impairments, which it addresses through strategic R&D and operational enhancements - The company faces macroeconomic risks and will monitor domestic and international economic changes while continuously strengthening its core competitiveness and market advantages[98] - The company faces market competition risks and will closely follow market demand, increase R&D investment, maintain core competitive advantages, and actively expand its customer base[99] - The company faces risks such as rapid technological iteration and volatile market demand in the digital creative product application and service industry, and will optimize its talent management and incentive systems while monitoring cutting-edge technologies[100][101] - As of June 30, 2025, the company's goodwill amounted to 152.7372 million Yuan, posing a risk of impairment; the company will enhance integration and synergy with acquired enterprises to improve operational and profitability levels[104][105] - As of the end of the reporting period, the company's inventory balance was 407.0586 million Yuan, accounting for 22.55% of total assets, posing a risk of large inventory amounts; the company will adjust procurement and sales plans to accelerate inventory turnover[107][108] XI. Record of Investor Relations Activities The company held an online performance briefing on May 13, 2025, to communicate with investors about its operating results - On May 13, 2025, the company conducted an online communication session via the V-Next platform, engaging with investors on topics including the company's operating performance[109] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[110] - The company has not disclosed a valuation enhancement plan[110] XIII. Implementation of the "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an announcement regarding a "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding a "Dual Improvement in Quality and Returns" action plan[110] Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management Non-employee supervisor Bao Mingya retired and left his position on May 23, 2025 Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Bao Mingya | Non-employee Supervisor | Departure | May 23, 2025 | Retirement | II. Profit Distribution and Capitalization of Capital Reserve for the Reporting Period The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[113] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures Portions of the 2023 and 2024 restricted stock incentive plans were forfeited due to employee departures and failure to meet performance targets - In the 2023 restricted stock incentive plan, a total of 8.8 million restricted shares were forfeited due to employee departures and failure to meet company-level performance targets[114] - In the 2024 restricted stock incentive plan, 8 million restricted shares were forfeited because the company-level performance targets for the first vesting period of the initial grant were not met[115] IV. Environmental Information Disclosure The company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law[117] V. Social Responsibility Hifun Media actively fulfills its social responsibilities by improving governance, protecting shareholder rights, supporting employee growth, and using technology for public welfare initiatives - Hifun Media has always regarded "Digital Creativity, Better Life" as the foundation for the development of the company and its various undertakings, actively assuming various social responsibilities and obligations[117] - The company places high importance on the realization of employee value, continuously optimizing employee growth paths and talent mechanisms to create smooth multi-level career channels[118] - The company continues to strengthen the leading role of its Party branch, exploring active and innovative new models of Party building to promote the deep integration of Party building and business operations[118] - Hifun Media has internalized "Technology for Good, Hifun Builds Love" as a fundamental principle driving high-quality development, focusing on the physical and mental health needs of special groups such as children in distress, those with autism, and the intellectually disabled[121] Significant Matters I. Commitments Fulfilled or Overdue by Relevant Parties There were no commitments fulfilled or overdue by the company's controlling shareholders, related parties, or the company itself during the reporting period - The company reports no commitments fulfilled during the reporting period or overdue as of the end of the reporting period by its actual controller, shareholders, related parties, acquirers, or the company itself[126] II. Non-operational Use of Company Funds by Controlling Shareholders and Other Related Parties No non-operational occupation of the company's funds by controlling shareholders or other related parties occurred during the reporting period - The company reports no non-operational occupation of its funds by the controlling shareholder or other related parties during the reporting period[127] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[128] IV. Appointment and Dismissal of Accounting Firm The company's semi-annual financial report has not been audited - The company's semi-annual report has not been audited[129] V. Explanation from the Board, Supervisory Committee, and Audit Committee on "Non-standard Audit Report" for the Current Period This item is not applicable as the semi-annual report was not audited VI. Board's Explanation on "Non-standard Audit Report" from the Previous Year This item is not applicable as there was no non-standard audit report in the previous year VII. Bankruptcy and Reorganization Matters No bankruptcy or reorganization matters occurred during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[130] VIII. Litigation Matters The company had no major litigation but was involved in several other legal disputes, most of which have been resolved through mediation, settlement, or are under enforcement - The company had no major litigation or arbitration matters during this reporting period[131] Other Litigation Matters | Litigation (Arbitration) Details | Amount Involved (10k Yuan) | Litigation (Arbitration) Progress | Judgment and Impact | | :--- | :--- | :--- | :--- | | Hifun Children (Guangzhou) arbitration vs. Sino-British Network Technology Co., Ltd. contract dispute | 2,597.44 | Award rendered | Arbitration award supports the plaintiff; no significant impact on company operations | | Beijing Zhongke Pangu Technology vs. Beijing Shuixin Visual Technology contract dispute | 1,120 | Enforcement in progress | Mediated; Beijing Shuixin Visual Technology to pay 11.2 million Yuan contract fee and damages by April 20, 2024 | | Hifun Media vs. Zhongke Beiying (Beijing) Technology Media, et al. contract dispute | 1,200 | Mediated, 0.8 million Yuan repaid | Defendants to return 12 million Yuan capital increase prepayment in installments | | Deyang City Smart Heart Information Technology vs. Sichuan Hifun AI Technology, et al. sales contract dispute | 7,359.21 | Enforcement suspended | Parties reached a settlement; case closed by court mediation | | Shanghai Tianshu Zhixin Semiconductor vs. Sichuan Hifun AI Technology, et al. sales contract dispute | 3,318.21 | Mediated | Court-mediated settlement reached; asset preservation measures against Hifun and subsidiaries lifted | IX. Penalties and Rectifications No penalties or rectifications occurred during the reporting period - No penalties or rectifications occurred during the reporting period[134] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company maintains a good integrity status, while its controlling shareholder is actively negotiating debt restructuring for matured pledged financing - During the reporting period, the company's integrity status was good, with no unfulfilled court judgments or significant overdue debts[135] - The controlling shareholder and actual controller's integrity status was good, but they failed to repay matured pledged financing loans; all parties are actively negotiating settlement and debt restructuring[135] XI. Major Related-Party Transactions No major related-party transactions related to daily operations, asset sales, joint investments, or financial services occurred during the reporting period - The company had no related-party transactions related to daily operations during the reporting period[136] - The company had no related-party transactions involving the acquisition or sale of assets or equity during the reporting period[137] - The company had no related-party credit or debt transactions during the reporting period[139] - There were no deposits, loans, credit lines, or other financial services between the company and related financial companies or between the company's controlled financial companies and related parties[140][141] XII. Major Contracts and Their Performance The company has no custody or lease matters, with total guarantees at 3.81% of net assets, while two major operating contracts are progressing as planned - The company had no custody, contracting, or leasing arrangements during the reporting period[143][144][146] Company Guarantee Summary | Indicator | Amount (10k Yuan) | | :--- | :--- | | Approved External Guarantee Limit at Period-End (A3) | 2,000 | | Actual External Guarantee Balance at Period-End (A4) | 2,000 | | Approved Guarantee Limit for Subsidiaries at Period-End (B3) | 30,000 | | Actual Guarantees Provided to Subsidiaries during Period (B2) | 81.7 | | Actual Guarantee Balance for Subsidiaries at Period-End (B4) | 2,252.7 | | Ratio of Total Actual Guarantees (A4+B4+C4) to Company's Net Assets | 3.81% | | Guarantees for Shareholders, Actual Controllers, and their Affiliates (D) | 2,252.7 | Major Ordinary Course Contracts | Contracting Company | Counterparty | Total Contract Amount (10k Yuan) | Contract Progress | Cumulative Recognized Sales Revenue (10k Yuan) | | :--- | :--- | :--- | :--- | :--- | | Oriental Dreamworks Cultural Industry Investment Co., Ltd. | Aotou (Hengqin) Health Tourism Co., Ltd., et al. | 32,560.06 | 89% | 26,442.38 | | Hifun Media Co., Ltd. | Pingtan Comprehensive Experimental Zone Xingchen Shuzhi Technology Co., Ltd. | 40,626.45 | Construction phase completed | | XIII. Other Significant Matters The company concluded several fundraising projects, reallocating surplus funds to working capital, and extended the completion date of another project to late 2025 - On February 21, 2025, the company concluded several fundraising investment projects and used the surplus funds to permanently supplement working capital[153] - On March 28, 2025, the scheduled completion date for the "Digital Immersive Application Scene Content Development Project" was postponed to December 31, 2025[154] XIV. Significant Matters of Company Subsidiaries There were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[155] Share Capital Changes and Shareholder Information I. Share Capital Changes The company's total share count remained unchanged at 604,795,417 shares, with no changes in the number of restricted or unrestricted shares Share Capital Changes | | Pre-Change Quantity | Pre-Change Ratio | Change (+, -) | Post-Change Quantity | Post-Change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 91,575 | 0.02% | 0 | 91,575 | 0.02% | | II. Unrestricted Shares | 604,703,842 | 99.98% | 0 | 604,703,842 | 99.98% | | III. Total Shares | 604,795,417 | 100.00% | 0 | 604,795,417 | 100.00% | Changes in Restricted Shares | Shareholder Name | Restricted Shares at Start of Period | Shares Released from Restriction | Shares Added to Restriction | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Xiaobo | 91,575 | 0 | 0 | 91,575 | Executive Lock-up Shares | II. Securities Issuance and Listing No securities were issued or listed during the reporting period - No securities were issued or listed during the reporting period[160] III. Number of Shareholders and Shareholding Status The company had 55,369 common shareholders at period-end, with Meng Xianmin as the largest shareholder holding 10.51%, most of which is pledged - Total number of common shareholders at the end of the reporting period: 55,369[161] Shareholding of Shareholders with over 5% or Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period-End | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | | Meng Xianmin | Domestic Individual | 10.51% | 63,544,821 | Pledged | 59,955,000 | | Pei Jun | Domestic Individual | 1.90% | 11,510,810 | N/A | 0 | | Guotong Trust Co., Ltd. | State-owned Legal Entity | 1.88% | 11,399,290 | N/A | 0 | - There are no related-party relationships or concerted actions among the shareholders listed above[162] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[164] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[165] - The company's actual controller did not change during the reporting period[166] VI. Preferred Stock Information The company had no preferred stock during the reporting period - The company had no preferred stock during the reporting period[167] Bond-related Matters The company had no bond-related matters during the reporting period[169] Financial Report I. Audit Report The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[171] II. Financial Statements This section presents the consolidated and parent company financial statements for the semi-annual period, reflecting the company's financial position, performance, and cash flows - The consolidated balance sheet shows total assets of 1,804,832,832.62 Yuan and total liabilities of 929,589,003.30 Yuan at the period-end[175] - The consolidated income statement shows a net loss of -103,947,390.57 Yuan for the period, with a net loss attributable to parent company shareholders of -96,027,674.76 Yuan[183] - The consolidated cash flow statement shows net cash outflow from operating activities of -61,632,624.80 Yuan and net cash outflow from investing activities of -154,128,750.41 Yuan[189] III. Company Basic Information Hifun Media, established in 2001 and listed in 2010, operates in digital creative services, internet video applications, and computing system integration - Hifun Media Co., Ltd. was established on November 3, 2001, and was listed on the Shenzhen Stock Exchange on April 26, 2010[206] - As of June 30, 2025, the company's total issued share capital is 604,795,417 shares, with a registered capital of 604,795,417.00 Yuan[207] - The company's business scope primarily covers digital creative product applications and services, internet video application products and services, and computing system integration and technical services[207] - These financial statements were approved for issuance by the company's Board of Directors on August 27, 2025[208] IV. Basis of Preparation for Financial Statements The financial statements are prepared on a going concern basis in accordance with the Ministry of Finance's Enterprise Accounting Standards and CSRC regulations - These financial statements are prepared on a going concern basis, in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and the regulations of the China Securities Regulatory Commission[209] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period[210] V. Significant Accounting Policies and Estimates This section details key accounting policies for consolidation, financial instruments, revenue recognition, and other areas, with no significant changes during the period - The financial statements prepared by the company comply with the requirements of the Enterprise Accounting Standards, and truly and completely reflect the company's financial position as of June 30, 2025, and its operating results and cash flows for the 2025 semi-annual period[212] Importance Standard Determination Method and Basis | Item | Importance Standard | | :--- | :--- | | Significant individual provision for bad debts on receivables | Amount ≥ 1.00 million Yuan | | Significant non-wholly-owned subsidiary | Impact of a single company's net profit on the group's net profit reaches 5% or more | - The company classifies financial assets into those measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss, based on the business model for managing the assets and their contractual cash flow characteristics[243] - Revenue is recognized when the customer obtains control of the related goods, provided that the contract with the customer meets specific criteria[345] - The company had no significant changes in accounting policies or estimates during the reporting period[369] VI. Taxes The company is subject to VAT (3%-13%) and corporate income tax (8.25%-25%), with several entities enjoying a preferential 15% rate as high-tech enterprises Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods, taxable labor services, and taxable services | 3%, 6%, 9%, 13% | | Corporate Income Tax | Taxable income | 8.25%, 16.5%, 15%, 20%, 25% | Tax Incentives | Taxpayer Name | Tax Incentive Policy and Basis | | :--- | :--- | | Hifun Media Co., Ltd. | Certified as a High-Tech Enterprise, valid until December 31, 2027 | | Oriental Dreamworks VR Tech Co., Ltd. | Certified as a High-Tech Enterprise, valid until December 2, 2027 | | Anhui Saida Technology Co., Ltd. | Certified as a High-Tech Enterprise, valid until November 28, 2027 | VII. Notes to Consolidated Financial Statement Items This section provides detailed disclosures on key balance sheet and income statement items, including cash, receivables, inventory, fixed assets, goodwill, and liabilities - Cash and cash equivalents at period-end were 84.97 million Yuan, of which 46.59 million Yuan was restricted[373] - Accounts receivable had a carrying amount of 147.10 million Yuan, after a bad debt provision of 143.19 million Yuan[392] - Inventories had a carrying amount of 407.06 million Yuan, after a write-down provision of 327.58 million Yuan[456] - Fixed assets had a carrying amount of 278.36 million Yuan, with an increase of 231.36 million Yuan during the period[501][502] - Goodwill had an original cost of 452.78 million Yuan and an accumulated impairment provision of 300.04 million Yuan[526][528] - Short-term borrowings at period-end were 52.02 million Yuan, a significant decrease from 96.22 million Yuan at the beginning of the period[545] - Contract liabilities at period-end were 102.03 million Yuan, a significant decrease from 283.60 million Yuan at the beginning of the period[567] - Operating revenue for the period was 184.74 million Yuan, and operating costs were 172.46 million Yuan[610] VIII. R&D Expenses Total R&D expenditure was 31.13 million Yuan, with 5.60 million Yuan capitalized for projects including intelligent computing and digital governance platforms R&D Expenses | Item | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Employee Compensation | 15,078,598.62 | 19,336,827.33 | | Depreciation and Amortization | 14,574,867.26 | 15,287,641.26 | | Outsourced R&D Expenses | 876,134.32 | 3,511,103.80 | | Share-based Payments | 331,250.00 | 238,504.28 | | Rental Fees | 128,663.82 | 575,433.90 | | Other Expenses | 144,851.29 | 364,575.58 | | Total | 31,134,365.31 | 39,314,086.15 | | Of which: Expensed R&D | 25,531,121.70 | 26,531,714.63 | | Capitalized R&D | 5,603,243.61 | 12,782,371.52 | - Significant capitalized R&D projects include the Intelligent Computing Platform System, Smart Planting Production Management Platform, Rural Comprehensive Governance Digital Intelligence Platform, and Zhisuan Hongtu[661][663] IX. Changes in the Scope of Consolidation The company lost control of two subsidiaries during the period through a sale and a deregistration, resulting in a disposal gain of 515,692.14 Yuan - The company lost control of subsidiaries through transactions or other events during the period[674] Disposal of Subsidiaries | Subsidiary Name | Disposal Price (Yuan) | Disposal Ratio | Disposal Method | Date of Losing Control | Difference between Disposal Price and Share of Net Assets (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangzhou Hifun Future Digital Technology Co., Ltd. | 0.00 | 100.00% | Sale | April 2, 2025 | 515,692.14 | | Dongfang Xinwei Zhisuan (Beijing) Technology Co., Ltd. | 0.00 | 100.00% | Deregistration | June 4, 2025 | 0.00 | X. Interests in Other Entities This section details the company's interests in its subsidiaries, joint ventures, and associates, including significant non-wholly-owned subsidiaries and key associate companies - The company's interests in subsidiaries include Oriental Dreamworks Cultural Industry Investment Co., Ltd., Beijing Huakai Film Production Co., Ltd., Anhui Saida Technology Co., Ltd., etc[676][677][678][679][680] - The company exercises control over certain entities with less than 50% voting rights, such as Hifun Sanpin (Jiangsu) Education Technology Development Co., Ltd., through board representation[680][681] Significant Non-wholly-owned Subsidiaries | Subsidiary Name | Minority Interest Ratio | Profit/Loss Attributable to Minority Interests (Yuan) | Minority Interest Balance at Period-End (Yuan) | | :--- | :--- | :--- | :--- | | Beijing Hifun Rainbow Technology Co., Ltd. | 49.00% | -6,843,687.50 | -134,136,573.93 | | Hifun Children (Guangzhou) Cultural Industry Development Co., Ltd. | 49.00% | -813,138.55 | -97,485,534.07 | | Oriental Dreamworks (Beijing) Architectural Design Co., Ltd. | 15.00% | -31,913.17 | -6,196,926.30 | - The company holds a 17.57% voting right in the associate The Virtual Reality Company and exercises significant influence by appointing a director[689] XI. Government Grants The company recognized government grants totaling 363,983.58 Yuan, primarily from tax rebates and high-tech enterprise awards, recorded in other income and non-operating income Government Grants Recognized in Current Profit or Loss | Account | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Other Income | 321,054.26 | 178,885.00 | | Non-operating Income | 42,929.32 | 21,353.01 | - Sources of other income include individual income tax handling fee refunds, stable employment subsidies, high-tech enterprise re-certification awards, and investment loan support bonuses[621] XII. Risks Related to Financial Instruments The company primarily faces credit and liquidity risks, which are managed through credit policies, continuous monitoring, and maintaining sufficient cash and credit facilities - The company's main financial instruments include cash, receivables, payables, and borrowings, exposing it primarily to credit risk and liquidity risk[700][701] - Credit risk is managed by establishing appropriate credit policies, continuously monitoring credit exposure, and assessing customer creditworthiness[702] - Liquidity risk is managed by the treasury department through continuous monitoring of short-term and long-term funding needs based on cash flow forecasts to ensure sufficient cash reserves are maintained[705] Financial Liabilities and Off-Balance Sheet Guarantees by Remaining Contractual Maturity | Item | On Demand (Yuan) | Within 1 Year (Yuan) | 1-2 Years (Yuan) | Over 2 Years (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Short-term Borrowings | | 52,024,126.92 | | | 52,024,126.92 | | Non-current Liabilities Due within One Year | | 13,670,689.06 | | | 13,670,689.06 | | Long-term Borrowings | | | 4,135,428.56 | 1,643,000.00 | 5,778,428.56 | | Accounts Payable | 329,631,082.84 | | | | 329,631,082.84 | | Other Payables | 17,988,014.46 | | | | 17,988,014.46 | | Total | 347,619,097.30 | 65,694,815.98 | 4,135,428.56 | 1,643,000.00 | 419,092,341.84 | XIII. Fair Value Disclosure Assets and liabilities measured at fair value totaled 256.13 million Yuan, primarily comprising financial assets valued using Level 3 inputs Assets and Liabilities Measured at Fair Value at Period-End | Item | Level 1 Fair Value (Yuan) | Level 2 Fair Value (Yuan) | Level 3 Fair Value (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets (Equity Investments) | | 15,250,000.00 | 61,072,979.81 | 76,322,979.81 | | (III) Other Equity Instrument Investments | | 62,000,000.00 | 117,807,417.03 | 179,807,417.03 | | Total Assets Continuously Measured at Fair Value | | 77,250,000.00 | 178,880,396.84 | 256,130,396.84 | - For equity investments where the operating environment and financial condition have not changed significantly, the company uses the acquisition cost as the best estimate of fair value; for those with significant changes, a third-party valuation is obtained[712] - The carrying amounts of financial assets and liabilities not measured at fair value approximate their fair values[713] XIV. Related Parties and Related-Party Transactions The company's ultimate controlling party is Meng Xianmin, and transactions with related parties included sales, services, leases, and guarantees, with key management compensation at 2.32 million Yuan - The ultimate controlling party of the company is Meng Xianmin[714] - Other related parties include associates (such as The Virtual Reality Company, Pukeko Pictures Limited Partnership) and entities where the company's directors, supervisors, or senior executives hold positions[715][716] Related-Party Transactions for Goods and Services | Related Party | Transaction Content | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | :--- | | Beijing Yuanshu Intelligent Technology Co., Ltd. | Technical service fee | 2,830.19 | | | Beijing Yuanshu Intelligent Technology Co., Ltd. | Production fee | | 3,485,000.00 | | Beijing Yuanshu Intelligent Technology Co., Ltd. | Design fee | | 2,415,094.35 | | Xingfan Xingqi (Chengdu) Technology Co., Ltd. | Information technology service | 126,698.12 | 1,023,113.21 | - The company acted as a guarantor for Anhui Saida Technology Co., Ltd. and Hifun Children (Guangzhou) Cultural Industry Development Co., Ltd., and was guaranteed by Meng Xianmin, Meng Nan, and Anhui Saida Technology Co., Ltd[726][727] - Key management personnel compensation for the current period was 2,318,646.16 Yuan, compared to 1,778,952.08 Yuan in the prior period[731] XV. Share-based Payments The first tranche of the 2024 restricted stock plan was forfeited, while 5.3 million Yuan in share-based payment expenses were recognized for the second tranche - In the 2024 restricted stock incentive plan, the first vesting period's performance targets for the initial grant were not met, and the corresponding shares were forfeited[738] - For the second vesting period, share-based payment expenses of 5,300,000.00 Yuan were recognized in the current reporting period[738] Share-based Payment Expenses for the Current Period | Grantee Category | Equity-settled Share-based Payment Expense (Yuan) | | :--- | :--- | | Management Personnel | 1,888,125.00 | | Sales Personnel | 3,080,625.00 | | R&D Personnel | 331,250.00 | | Total | 5,300,000.00 | XVI. Commitments and Contingencies The company has a 40 million Yuan investment commitment pending and is involved in a sales contract dispute with an unresolved outcome - The company has committed to a 40.00 million Yuan capital increase in Beijing Future Computing Cloud Technology Co., Ltd., but the closing conditions had not been met as of June 30, 2025[742] - Subsidiary Anhui Saida Technology is involved in a sales contract dispute with Shenzhen Kanhu Jia Technology over after-sales payments and obsolete inventory, totaling over 3.7 million Yuan plus interest[743] - The company has no significant contingencies to disclose[744] XVII. Subsequent Events No significant non-adjusting events, profit distributions, sales returns, or other subsequent events occurred after the balance sheet date - The company had no significant non-adjusting events during the reporting period[746] - The company had no profit distribution plans during the reporting period[747] - The company had no sales returns during the reporting period[747] XVIII. Other Significant Matters The company had no prior period error corrections, debt restructurings, or discontinued operations, and defines its operating segments based on its internal organizational structure - The company had no prior period accounting error corrections during the reporting period[752] - The company had no debt restructuring, asset swaps, annuity plans, or discontinued operations during the reporting period[750][751][753] - The company determines its operating segments based on its internal organizational structure, management requirements, and internal reporting system, with each segment providing different products and services[754][755] XIX. Notes to Parent Company Financial Statement Items This section details key items in the parent company's financial statements, including significant receivables from related parties and long-term equity investments in subsidiaries and associates - The parent company's accounts receivable had a carrying amount of 177.98 million Yuan, after a bad debt provision of 5.61 million Yuan[763] - The parent company's other receivables had a carrying amount of 1,043.69 million Yuan, after a bad debt provision of 21.33 million Yuan[794] - The parent company's **long-ter