川网传媒(300987) - 2025 Q2 - 季度财报

Section 1: Important Notes, Table of Contents, and Definitions Important Notes The company's management guarantees the report's accuracy and confirms no dividend distribution plan for the period - The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, confirming no false records, misleading statements, or major omissions, and assume individual and joint legal liability[3] - Company head Yang Miao, chief accounting officer Xie Jia, and head of the accounting department Zhong Yan declare that the financial report in this semi-annual report is true, accurate, and complete[3] - The company plans no cash dividends, no bonus shares, and no capitalization of public reserve funds[4] Table of Contents The report's table of contents is clearly structured into eight main sections covering key corporate and financial information Report Directory | Section | Title | Page Number | | :--- | :--- | :--- | | Section 1 | Important Notes, Table of Contents, and Definitions | 1 | | Section 2 | Company Profile and Key Financial Indicators | 6 | | Section 3 | Management Discussion and Analysis | 9 | | Section 4 | Corporate Governance, Environment, and Society | 24 | | Section 5 | Important Matters | 26 | | Section 6 | Share Capital Changes and Shareholder Information | 33 | | Section 7 | Bond-related Matters | 37 | | Section 8 | Financial Report | 38 | List of Documents for Inspection All legally required documents, including the signed semi-annual report and financial statements, are available for inspection at the Board of Directors' office - Documents available for inspection include the semi-annual report text signed by the legal representative, financial statements signed and sealed by relevant personnel, originals of all company documents and announcements disclosed during the reporting period, and other related materials[9][10][11][12] - The location for inspecting the above documents is the Board of Directors' office[13] Definitions This section defines key terms used throughout the report, including company names, regulatory bodies, and reporting periods Key Definitions | Term | Refers to | Definition | | :--- | :--- | :--- | | The Company, Chuanwang Media | Refers to | Sichuan Newsnet Media (Group) Co,Ltd | | Chuanwang Limited | Refers to | Sichuan Newsnet Co, Ltd, the predecessor of the Company | | CSRC | Refers to | China Securities Regulatory Commission | | SZSE | Refers to | Shenzhen Stock Exchange | | Sichuan Provincial Party Committee Propaganda Department | Refers to | Propaganda Department of the Sichuan Provincial Committee of the Communist Party of China | | Reporting Period, Current Period | Refers to | January 1, 2025 to June 30, 2025 | | Same Period Last Year | Refers to | January 1, 2024 to June 30, 2024 | | End of the Reporting Period | Refers to | June 30, 2025 | Section 2: Company Profile and Key Financial Indicators I. Company Profile The company, Chuanwang Media (stock code 300987), is listed on the Shenzhen Stock Exchange with Yang Miao as its legal representative Company Basic Information | Stock Abbreviation | Chuanwang Media | Stock Code | 300987 | | :--- | :--- | :--- | :--- | | Stock Exchange | Shenzhen Stock Exchange | | | | Chinese Name | 四川新闻网传媒（集团）股份有限公司 | | | | Chinese Abbreviation (if any) | 川网传媒 | | | | English Name (if any) | Sichuan Newsnet Media (Group) Co,Ltd | | | | Legal Representative | Yang Miao | | | II. Contacts The Board Secretary is Xie Jia and the Securities Affairs Representative is Lin Ping, both located at the Sichuan News Building in Chengdu Company Contacts | | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Xie Jia | Lin Ping | | Address | 19th Floor, Sichuan News Building, 196 Yuxin Road, Jinniu District, Chengdu | 19th Floor, Sichuan News Building, 196 Yuxin Road, Jinniu District, Chengdu | | Phone | 028-62616168 | 028-62616168 | | Fax | 028-85327857 | 028-85327857 | | Email | ir@newssc.org | ir@newssc.org | III. Other Information No changes occurred in the company's registration details, addresses, or information disclosure channels during the reporting period - The company's registered address, office address, postal code, website, and email address remained unchanged during the reporting period, with details available in the 2024 annual report[19] - The stock exchange website and media for disclosing the semi-annual report, as well as the location for report inspection, remained unchanged during the reporting period, with details available in the 2024 annual report[20] - The company's registration status remained unchanged during the reporting period, with details available in the 2024 annual report[21] IV. Key Accounting Data and Financial Indicators Operating revenue grew 29.09% to RMB 135.21 million, while net profit attributable to shareholders declined 52.00% to RMB 2.74 million, though operating cash flow improved significantly Key Accounting Data and Financial Indicators (Consolidated) | Indicator | Current Period (RMB) | Prior-Year Period (RMB) | Change vs Prior-Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 135,209,867.66 | 104,742,605.57 | 29.09% | | Net Profit Attributable to Shareholders | 2,738,405.84 | 5,705,130.15 | -52.00% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 2,548,996.90 | 5,266,814.55 | -51.60% | | Net Cash Flow from Operating Activities | 34,677,011.53 | -13,195,240.86 | 362.80% | | Basic Earnings Per Share (RMB/Share) | 0.02 | 0.03 | -33.33% | | Diluted Earnings Per Share (RMB/Share) | 0.02 | 0.03 | -33.33% | | Weighted Average Return on Equity | 0.34% | 0.71% | -0.37% | | End of Current Period | End of Prior Year | Change vs End of Prior Year | | Total Assets | 1,124,736,089.77 | 1,183,890,342.17 | -5.00% | | Net Assets Attributable to Shareholders | 808,306,929.62 | 805,218,523.78 | 0.38% | V. Differences in Accounting Data under Domestic and Foreign Accounting Standards There are no discrepancies between financial reports prepared under Chinese accounting standards and those under international or foreign accounting standards - The company has no discrepancies in net profit or net assets between financial reports disclosed under international accounting standards and Chinese accounting standards for the reporting period[23] - The company has no discrepancies in net profit or net assets between financial reports disclosed under foreign accounting standards and Chinese accounting standards for the reporting period[24] VI. Non-recurring Gains and Losses Non-recurring gains and losses totaled RMB 189,408.94, primarily from asset disposals and government grants Non-recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | Notes | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets (including write-offs of asset impairment provisions) | 51,135.36 | | | Government Grants Included in Current Profit/Loss (excluding those closely related to normal business operations, compliant with national policies, and having a continuous impact) | 145,511.93 | | | Other Non-operating Income and Expenses | -7,198.18 | | | Less: Income Tax Impact | 53.03 | | | Minority Interest Impact (After Tax) | -12.86 | | | Total | 189,408.94 | | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses[27] - The company has not classified any non-recurring items listed in "Explanatory Announcement No 1 on Information Disclosure for Companies Offering Securities to the Public - Non-recurring Gains and Losses" as recurring items[27] Section 3: Management Discussion and Analysis I. Principal Business Activities The company operates as a leading new media enterprise, with core businesses in integrated marketing, mobile information services, and interactive television - Chuanwang Media is a leading mainstream new media enterprise in China, supported by internet and mobile communication technologies, and operates platforms such as Sichuan Newsnet, the provincial government's new media, and Sichuan Mobile News[29] - The company owns a portfolio of new media platforms including Sichuan Newsnet, China West Network, Sichuan Fabu, Sichuan Mobile News, Mala Community, and Kele Film, forming a comprehensive "web, app, social, screen" communication matrix[29] - During the reporting period, the company's overall operations were stable, with all business segments running normally, notable achievements in news reporting, and continuous improvement in governance[29] (I) New Media Integrated Marketing The company provides comprehensive online and offline promotional services to a wide range of clients, primarily government departments and state-owned enterprises in Sichuan - The company's new media integrated marketing business leverages platforms like Sichuan Newsnet and Mala Community, combined with PC, mobile, and outdoor media channels, to offer clients comprehensive promotional services[30] - Service types include promotional campaigns, online public opinion services, advertising agency operations, and technical services, catering to major enterprises, public institutions, and government departments in Sichuan[30] - The company secured the advertising resource operation project for the Chengdu rail transit network, gaining rights to operate media advertising resources across 17 metro lines[31] (II) Mobile Information Services This service delivers news and information to subscribers via mobile news reports, generating revenue from fees and value-added services - Mobile information services primarily involve providing news and information to subscribers through mobile news reports in exchange for service fees[31] - Service types include mobile news dissemination and value-added services such as advertising, mobile technology support, and content security auditing[31] - The company's main mobile news products are "Sichuan Mobile News" and "Government and Party Affairs Mobile News"[31] (III) Interactive Television Business The company acts as a content and service provider for IPTV platforms, generating revenue through content provision and operational management - The interactive television business involves the company providing content and services to IPTV platforms[32] - The company is responsible for the content provision and operational management of its branded zones and the interactive TV platform, generating revenue through settlement with the platform[32] Disclosure Requirements for Internet Marketing and Data Services Internet marketing revenue reached RMB 53.76 million, a 12.39% year-on-year increase, accounting for 39.76% of total operating revenue Overall Internet Marketing Revenue | Indicator | Current Period Amount (RMB) | % of Operating Revenue | Prior-Year Period Amount (RMB) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Internet Marketing Revenue | 53,757,432.62 | 39.76% | 47,830,282.89 | 45.66% | 12.39% | - The company's internet marketing business generates revenue by providing comprehensive promotional services to clients through its diverse new media platforms and channels[36] - The company's clients are primarily government departments, public institutions, and state-owned enterprises, with a large and diverse customer base[36] Key Internet Media and Operating Data The company's media platforms, including Sichuan Mobile News and Mala Community, maintained extensive user reach and high engagement levels during the period Sichuan Mobile News Operating Data for H1 2025 | Indicator | Data | | :--- | :--- | | Average Monthly Paying Users (in ten thousands) | 214 | | User Coverage of Mobile News Products (in ten thousands) | 6,465 | | User Coverage of Mobile Operating Platforms (in ten thousands) | 7,584 | | Average Monthly Articles Published | 6,280 | | Average Monthly Interactive Participation (in ten thousands) | 2.32 | | Average Monthly Interactive Clicks (in ten thousands) | 1,810 | Sichuan Fabu Website and App Operating Data for H1 2025 | Indicator | Data | | :--- | :--- | | Registered App Users at Period-End (in ten thousands) | 64.2 | | Weibo Followers at Period-End (in ten thousands) | 657.1 | | WeChat Followers at Period-End (in ten thousands) | 110 | | App Readership (in ten thousands) | 2,197 | | Weibo Readership (in ten thousands) | 18,326 | | WeChat Readership | 742 | Mala Community Operating Data for H1 2025 | Indicator | Data | | :--- | :--- | | Page Views (PV) (in ten thousands) | 9,235 | | Unique Visitors (UV) (in ten thousands) | 5,435 | | Average Monthly Active Users (in ten thousands) | 436 | | Visitor Geographic Distribution (Sichuan Province) | 68.18% | | Average Visit Duration (seconds) | 195.00 | | User Stickiness | 48.33% | | Registered Users at Period-End (in ten thousands) | 800 | | Weibo Followers at Period-End (in ten thousands) | 132.2 | | App Readership (in ten thousands) | 7,619 | | Weibo Readership (in ten thousands) | 5,000 | II. Core Competitiveness Analysis The company's core strengths lie in its operational licenses, strong brand presence in Sichuan, large user base, and established relationships with government clients - The company holds several high-barrier-to-entry licenses, including for internet news information services and internet publishing, and is qualified for internet news gathering, editing, and distribution[46] - The company's Sichuan Newsnet is the official portal website of Sichuan Province, and Sichuan Fabu is the sole provincial-level government release platform recognized by the Cyberspace Administration of China, ranking first in comprehensive influence among provincial government new media nationwide[47] - The company possesses a large base of high-quality, high-stickiness users, maintains long-term strategic partnerships with government entities across Sichuan, and its mobile information services cover over 70 million users in the province[48] - As a key cultural media group and mainstream media outlet in Sichuan, the company has a first-mover advantage in serving various levels of party and government organs and industry departments within the province[50] - With multiple new media platforms, a broad client base, and extensive information channels, the company has a significant advantage in gathering and mining news and information from all cities and prefectures within Sichuan[51] III. Analysis of Main Business Operations Revenue grew 29.09% to RMB 135.21 million, driven by new metro media operations, but net profit fell 52% to RMB 2.74 million due to increased R&D and operational costs - During the reporting period, the company achieved operating revenue of RMB 135.21 million, a year-on-year increase of 29.09%, while net profit attributable to shareholders was RMB 2.74 million, a decrease of 52%; basic earnings per share were RMB 0.02, down 33.33%[52] - The revenue growth was primarily due to stable growth in the main business and the addition of a new metro media operation business after securing the Chengdu rail transit advertising rights in July 2024[52] - The profit decline was mainly caused by: 1) increased R&D expenses and investment in new projects like "Chuanwang Cloud"; 2) the new business being in its initial operational phase; 3) increased amortization of renovation costs and depreciation of assets after relocating to a new office[52] Year-on-Year Changes in Key Financial Data Operating revenue increased by 29.09%, but a 42.56% rise in operating costs and a 100% increase in R&D investment pressured profitability, while operating cash flow improved significantly Key Financial Data YoY Changes | Indicator | Current Period (RMB) | Prior-Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 135,209,867.66 | 104,742,605.57 | 29.09% | | | Operating Costs | 99,806,344.84 | 70,008,391.79 | 42.56% | Mainly due to increased media resource procurement costs | | Selling Expenses | 12,411,014.99 | 10,665,174.97 | 16.37% | | | Administrative Expenses | 20,235,388.14 | 22,545,820.89 | -10.25% | | | Finance Costs | -1,052,119.35 | -5,898,018.16 | 82.16% | Mainly due to increased financing costs for metro media resource leasing | | Income Tax Expense | -526,833.79 | 1,420,013.91 | -137.10% | Mainly due to a decrease in current income tax payable | | R&D Investment | 844,892.58 | 0.00 | 100.00% | Mainly due to increased R&D investment in the current period | | Net Cash Flow from Operating Activities | 34,677,011.53 | -13,195,240.86 | 362.80% | Mainly due to revenue growth and increased cash receipts from sales | | Net Cash Flow from Investing Activities | 14,915,408.83 | -54,138,499.54 | 127.55% | Mainly due to the maturity and recovery of large-denomination certificates of deposit purchased in the prior period | | Net Cash Flow from Financing Activities | -39,167,270.15 | -34,325,914.04 | -14.10% | | | Net Increase in Cash and Cash Equivalents | 10,425,150.21 | -101,659,654.44 | 110.25% | Primarily due to the combined effects of operating, investing, and financing cash flows | Products or Services Accounting for Over 10% New media integrated marketing revenue grew 82.98%, while mobile information services revenue declined 11.26% Products or Services Accounting for Over 10% | Product or Service | Operating Revenue (RMB) | Operating Costs (RMB) | Gross Margin | Revenue YoY Change | Cost YoY Change | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | New Media Integrated Marketing | 79,966,096.41 | 64,939,461.64 | 18.79% | 82.98% | 87.53% | -1.97% | | Mobile Information Services | 44,887,839.67 | 26,273,578.86 | 41.47% | -11.26% | -6.28% | -3.11% | | Interactive TV and Others | 10,355,931.58 | 8,593,304.34 | 17.02% | -0.98% | 16.99% | -12.75% | IV. Analysis of Non-Core Business Non-core business activities had a minor impact on profits, with asset impairment provisions being the most significant non-sustainable item Analysis of Non-Core Business | Item | Amount (RMB) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 2,003.76 | 0.09% | Primarily investment income recognized under the equity method | Yes | | Asset Impairment | 410,468.28 | 17.69% | Primarily impairment provisions for accounts receivable, other receivables, and contract assets per company policy | No | | Non-operating Income | 2,675.54 | 0.12% | | No | | Non-operating Expenses | 16,437.48 | 0.71% | | No | V. Analysis of Assets and Liabilities Total assets decreased by 5.00% to RMB 1.12 billion, with right-of-use assets and lease liabilities showing a slight decline as a percentage of total assets Major Changes in Asset Composition | Item | End of Current Period (RMB) | % of Total Assets | End of Prior Year (RMB) | % of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 497,303,490.72 | 44.22% | 487,921,340.51 | 41.21% | 3.01% | | Accounts Receivable | 75,741,147.23 | 6.73% | 85,139,789.41 | 7.19% | -0.46% | | Contract Assets | 2,903,062.15 | 0.26% | 3,192,878.43 | 0.27% | -0.01% | | Right-of-use Assets | 193,444,075.88 | 17.20% | 226,889,841.73 | 19.16% | -1.96% | | Contract Liabilities | 27,429,032.97 | 2.44% | 45,546,164.58 | 3.85% | -1.41% | | Lease Liabilities | 125,728,090.64 | 11.18% | 154,516,545.41 | 13.05% | -1.87% | Assets and Liabilities Measured at Fair Value | Item | Opening Balance (RMB) | Cumulative Fair Value Changes in Equity (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | | Other Non-current Financial Assets | 49,577,701.32 | 9,577,701.32 | 49,577,701.32 | | Subtotal of Financial Assets | 49,577,701.32 | 9,577,701.32 | 49,577,701.32 | | Total | 49,577,701.32 | 9,577,701.32 | 49,577,701.32 | | Financial Liabilities | 0.00 | 0.00 | 0.00 | - Cash and cash equivalents at the end of the period include a performance bond deposit of RMB 43,500.00[64] VI. Investment Analysis Total investment was RMB 49.58 million, primarily in a closed-end fund, while some fundraising projects were terminated or postponed Investment Amount in the Reporting Period | Investment in Current Period (RMB) | Investment in Prior-Year Period (RMB) | Change | | :--- | :--- | :--- | | 49,577,701.32 | 52,153,609.93 | -4.94% | Financial Assets Measured at Fair Value | Asset Class | Initial Investment Cost (RMB) | Cumulative Fair Value Changes in Equity (RMB) | Closing Amount (RMB) | Funding Source | | :--- | :--- | :--- | :--- | :--- | | Fund | 40,000,000.00 | 9,577,701.32 | 49,577,701.32 | Own Funds | | Total | 40,000,000.00 | 9,577,701.32 | 49,577,701.32 | -- | - On March 31, 2025, and May 9, 2025, the company's Board of Directors, Supervisory Committee, and Annual General Meeting approved the termination of the "National Mobile News Joint Operation Platform Project" and "Integrated Media Intelligent Interaction Platform Project," and postponed the "'Chuanwang Cloud' Intelligent Technology Platform Project" after re-evaluation[72] - As of June 30, 2025, the company had used RMB 8.32 million of raised funds, with a special account balance of RMB 55.89 million (including interest and investment income), and had invested RMB 110 million in large-denomination certificates of deposit and RMB 20 million in time deposits[72] Entrusted Wealth Management | Type | Funding Source | Amount Entrusted (RMB 10k) | Outstanding Balance (RMB 10k) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 5,000 | 4,000 | | Bank Wealth Management Products | Raised Funds | 13,000 | 11,000 | | Total | | 18,000 | 15,000 | VII. Major Asset and Equity Sales The company did not engage in any major sales of assets or equity during the reporting period - The company did not sell any major assets during the reporting period[83] - The company did not sell any major equity during the reporting period[84] VIII. Analysis of Major Holding and Participating Companies The company's main subsidiaries operate in internet services and advertising, with varying contributions to net profit Major Subsidiaries and Participating Companies with >10% Impact on Net Profit | Company Name | Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Mala Community Network Media Co, Ltd | Subsidiary | Internet and Related Services | 20,000,000.00 | 36,246,434.69 | 27,826,501.00 | 9,251,813.46 | 638,674.11 | 601,431.86 | | Sichuan Xinmei Hulian Culture Communication Co, Ltd | Subsidiary | Internet and Related Services | 10,000,000.00 | 10,521,819.01 | 5,683,864.75 | 4,007,871.28 | -860,215.61 | -861,379.13 | | Sichuan Xinwang Public Network Information Management Co, Ltd | Subsidiary | Internet and Related Services | 10,000,000.00 | 22,244,210.90 | 22,135,499.06 | 0.00 | 339,818.22 | 322,243.11 | | Chengdu Wangtai Culture Media Co, Ltd | Subsidiary | Advertising Agency | 30,000,000.00 | 54,162,152.73 | 25,777,687.12 | 40,298,662.43 | -2,651,449.28 | -2,060,811.63 | | Sichuan Fabu Network Media Co, Ltd | Subsidiary | Internet and Related Services | 10,000,000.00 | 17,032,159.03 | 12,587,340.72 | 5,127,528.76 | 676,828.59 | 503,861.05 | - There is no information on significant holding or participating companies that requires disclosure during the reporting period[86] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[87] X. Risks and Countermeasures The company faces risks related to government procurement, policy changes, regional concentration, and bad debt, which it addresses through various strategic measures - The company faces uncertainty from potential changes in government procurement service amounts and will mitigate this by improving service quality, monitoring policy trends, and strengthening process management[87] - The company's mobile information and interactive TV businesses are highly dependent on telecom operators for promotion, and policy changes could have an adverse impact; the company will continuously track policies and adjust its business strategies accordingly[89] - The company's main business revenue and customer base are concentrated in Sichuan Province, posing a risk of regional and customer concentration; the company will enhance synergy between its new media and mobile businesses and expand its national presence[90] - There is a risk of bad debt from uncollectible accounts and notes receivable; the company will manage this by assessing bad debt risk, managing customers by credit rating, and strengthening collection efforts[91] - Fundraising investment projects face risks from long construction cycles, large capital investment, and market changes; the company will manage these by considering market factors, strengthening talent and systems, and advancing project implementation[92] XI. Record of Investor Relations Activities The company participated in an online 2024 annual results presentation on June 20, 2025, via the "p5w.net" investor relations platform Record of Investor Relations Activities | Date | Location | Method | Counterparty Type | Counterparty | Main Topics Discussed & Materials Provided | Index of Basic Survey Information | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | June 20, 2025 | p5w.net "Investor Relations Interactive Platform" | Online Platform | Other | Investors participating in the 2024 annual results presentation via the p5w.net platform (https://ir.p5w.net) | 2024 Annual Results Presentation | www.cninfo.com.cn | XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not established a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[94] - The company has not disclosed a valuation enhancement plan[94] XIII. Implementation of the "Dual Improvement of Quality and Return" Action Plan The company has not disclosed an action plan for the "Dual Improvement of Quality and Return" initiative - The company has not disclosed an announcement regarding the "Dual Improvement of Quality and Return" action plan[94] Section 4: Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management There were no changes to the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period; for details, please refer to the 2024 annual report[95] II. Profit Distribution and Capitalization of Capital Reserve The company does not plan to distribute cash dividends, issue bonus shares, or capitalize its capital reserve for the semi-annual period - The company plans no cash dividends, no bonus shares, and no capitalization of public reserve funds for the semi-annual period[96] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[97] IV. Environmental Information Disclosure The company and its main subsidiaries are not designated as 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[98] V. Social Responsibility The company fulfilled its social responsibilities by publishing over 53,000 articles on major topics, achieving a total online readership of 1.97 billion - In the first half of 2025, Chuanwang Media actively fulfilled its responsibilities as a party-affiliated media and state-owned enterprise, prioritizing social benefits and advancing media integration[99] - The company utilized various media formats, including text, video, AI, and AIGC, to cover major events such as the national and provincial "Two Sessions" and the fifth anniversary of the Chengdu-Chongqing economic circle strategy[99] - The company published over 53,000 articles, achieving a total online readership of 1.97 billion; Sichuan Mobile News sent 4.9 billion news messages and short videos, significantly enhancing the influence and credibility of mainstream media[99] Section 5: Important Matters I. Commitments Fulfilled or Overdue by Relevant Parties There were no commitments fulfilled or overdue by the company's actual controller, shareholders, or other related parties during the reporting period - The company reports no commitments that were fulfilled during the reporting period or were overdue as of the end of the reporting period by the actual controller, shareholders, related parties, acquirers, or the company itself[101] II. Non-operational Fund Occupation by Controlling Shareholders and Other Related Parties There was no non-operational occupation of the company's funds by its controlling shareholder or other related parties during the reporting period - The company reports no instances of non-operational fund occupation by its controlling shareholder or other related parties during the reporting period[102] 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[103] 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[104] V. Explanation on "Non-standard Audit Report" by the Board, Supervisory Committee, and Audit Committee This section is not applicable as there was no "non-standard audit report" for the current period - Not applicable[105] VI. Board's Explanation on Prior Year's "Non-standard Audit Report" This section is not applicable as there was no "non-standard audit report" for the prior year - Not applicable[105] VII. Bankruptcy and Reorganization Matters The company was not involved in any bankruptcy or reorganization matters during the reporting period - The company was not involved in any bankruptcy or reorganization matters during the reporting period[105] VIII. Litigation Matters The company had no major litigation or arbitration but was involved in other minor lawsuits with a total amount of RMB 0.61 million - The company had no major litigation or arbitration matters during the reporting period[106] Summary of Other Litigation Matters | Litigation (Arbitration) Details | Amount Involved (RMB 10k) | Provision for Liabilities | | :--- | :--- | :--- | | Summary of other litigation matters | 61 | No | IX. Penalties and Rectifications The company was not subject to any penalties or rectification orders during the reporting period - The company was not subject to any penalties or rectification orders during the reporting period[108] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller There were no issues concerning the integrity of the company, its controlling shareholder, or its actual controller during the reporting period - There were no issues concerning the integrity of the company, its controlling shareholder, or its actual controller during the reporting period[109] XI. Major Related-Party Transactions The company engaged in routine related-party transactions, primarily involving sales to entities under its actual controller and procurement from subsidiaries of its controlling shareholder Related-Party Transactions in Daily Operations (Sales of Goods or Services) | Related Party | Relationship | Transaction Type | Transaction Content | Amount (RMB 10k) | % of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | :--- | | Propaganda Department of Sichuan Provincial Party Committee | Actual Controller | Sales of goods or services | Comprehensive government and enterprise services | 278.44 | 3.48% | | Lecturer Group of Sichuan Provincial Party Committee | Public institution held by the actual controller | Sales of goods or services | Comprehensive government and enterprise services | 232.08 | 2.90% | | Sichuan Provincial Cultural Industry Development Promotion Center | Public institution held by the actual controller | Sales of goods or services | Comprehensive government and enterprise services | 17.16 | 0.21% | | Sichuan Xinwang Bank Co, Ltd | Company where a senior executive's immediate family member is a director | Sales of goods or services | Promotion and planning services | 3.77 | 0.05% | | Sichuan Cultural Big Data Co, Ltd | Subsidiary of the controlling shareholder | Sales of goods or services | Promotion services | 1.89 | 0.02% | | Chengdu Wukong Culture Media Co, Ltd | Subsidiary of the controlling shareholder | Sales of goods or services | Advertising and project promotion services | 38.12 | 0.48% | Related-Party Transactions in Daily Operations (Procurement of Goods or Services) | Related Party | Relationship | Transaction Type | Transaction Content | Amount (RMB 10k) | % of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | :--- | | Chengdu Xinmei Property Management Co, Ltd | Wholly-owned subsidiary of the controlling shareholder | Procurement of goods or services | Property management and other services | 79.52 | 603.4% | | Chengdu Bus Media Co, Ltd | Company where a senior executive served as an executive in the past 12 months | Procurement of goods or services | Media procurement | 28.31 | 0.93% | | Sichuan Rongyuan Real Estate Co, Ltd | Wholly-owned subsidiary of the controlling shareholder | Procurement of goods or services | Leasing and catering services | 447.75 | 83.87% | | Sichuan Cultural Big Data Co, Ltd | Subsidiary of the controlling shareholder | Procurement of goods or services | Technical services | 0 | 0.00% | - The company did not engage in related-party transactions involving asset or equity acquisitions/sales, joint external investments, related-party debt, dealings with related financial companies, or other major related-party transactions during the reporting period[112][113][114][115][116][117][118] XII. Major Contracts and Their Performance The company has significant leasing contracts for office space and advertising rights, and a major operating contract with Migu Music, while no major guarantees were made - During the reporting period, the company's main leased assets included: (1) office space at Sichuan News Building; (2) advertising rights for the Chengdu rail transit network; and (3) bus stop advertising rights for its subsidiary Wangtai Media, with some leases having a significant impact on profit[121] Leases with an Impact of 10% or More on Total Profit | Lessor | Lessee | Leased Asset | Amount Involved (RMB 10k) | Lease Income/Loss (RMB 10k) | Impact on Company | | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Rongyuan Real Estate Co, Ltd | Sichuan Newsnet Media (Group) Co, Ltd | Floors 14-19, Sichuan News Building, Chengdu | 708.27 | -337.32 | This lease decreased the company's total profit by RMB 3.37 million | | Chengdu Rail Transit Resource Management Co, Ltd | Sichuan Newsnet Media (Group) Co, Ltd | Chengdu Rail Transit Advertising Project (Phase 2) - Section 1 | 9,398.18 | -1,667.27 | This lease helps expand business and increase revenue | | Chengdu Rail Transit Resource Management Co, Ltd | Sichuan Newsnet Media (Group) Co, Ltd | Chengdu Rail Transit Advertising Project (Phase 2) - Section 2 | 9,013.45 | -1,599.15 | This lease helps expand business and increase revenue | | Chengdu Tianfu Investment Industrial Co, Ltd | Chengdu Wangtai Culture Media Co, Ltd | Sichuan Tianfu New Area Bus Stop Advertising Resources | 144.7 | -99.4 | This lease decreased the company's total profit by RMB 0.99 million | Major Operating Contracts | Company Party | Counterparty | Total Contract Amount (RMB 10k) | Performance Progress | Revenue Recognized This Period (RMB 10k) | Cumulative Revenue Recognized (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | :--- | | Chuanwang Media | Migu Music Co, Ltd | 3,511.00 | 98.04% | 56.58 | 3,247.18 | - The company had no major guarantees during the reporting period[124] - The company had no other major contracts during the reporting period[127] XIII. Explanation of Other Major Matters The company completed its 2024 annual equity distribution on July 8, 2025, with details disclosed on Cninfo - The company's Board of Directors, Supervisory Committee, and 2024 Annual General Meeting approved the 2024 annual profit distribution plan, which was implemented on July 8, 2025[128] XIV. Major Matters Concerning Company Subsidiaries The company increased the capital of its wholly-owned subsidiary, Sichuan Mala Community Network Media Co, Ltd, by RMB 10 million to enhance its competitiveness - On March 31, 2025, the Board of Directors approved a RMB 10 million capital increase for the wholly-owned subsidiary Mala Community through a cash injection[129] - After the capital increase, Mala Community's registered capital is RMB 20 million, and it remains a wholly-owned subsidiary; the relevant business registration changes were completed in April 2025[129][130] Section 6: Share Capital Changes and Shareholder Information I. Share Capital Changes The company's total number of shares and share capital structure remained unchanged during the reporting period Share Capital Changes | | Pre-Change Quantity | Pre-Change Ratio | Change (+, -) | Post-Change Quantity | Post-Change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | | | | | | | II. Unrestricted Shares | 173,368,000 | 100.00% | | 173,368,000 | 100.00% | | 1. RMB Ordinary Shares | 173,368,000 | 100.00% | | 173,368,000 | 100.00% | | III. Total Shares | 173,368,000 | 100.00% | | 173,368,000 | 100.00% | - The reasons for share changes, approvals, transfers, share repurchase progress, and implementation of share repurchases via centralized bidding are not applicable[132][133] - Changes in restricted shares are not applicable[133] II. Securities Issuance and Listing The company did not issue or list any new securities during the reporting period - Not applicable[133] III. Number of Shareholders and Shareholding Status As of the period-end, the company had 22,907 ordinary shareholders, with the controlling shareholder holding a 44.99% stake - The total number of ordinary shareholders at the end of the reporting period was 22,907[134] Shareholdings of Shareholders with over 5% or Top 10 Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period-End | Unrestricted Shares Held | Share Status | Quantity (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan New Media Group Co, Ltd | State-owned Legal Entity | 44.99% | 78,000,000.00 | 78,000,000.00 | N/A | 0.00 | | Guoguang Global Media Holdings Co, Ltd | State-owned Legal Entity | 3.67% | 6,370,000.00 | 6,370,000.00 | Pledged | 6,370,000.00 | | | | | | | Frozen | 6,370,000.00 | | China Youth Publishing Group Co, Ltd | State-owned Legal Entity | 3.22% | 5,590,000.00 | 5,590,000.00 | N/A | 0.00 | | China Youth Magazine | State-owned Legal Entity | 1.42% | 2,470,000.00 | 2,470,000.00 | N/A | 0.00 | | Emei Film Group Co, Ltd | State-owned Legal Entity | 1.40% | 2,424,080.00 | 2,424,080.00 | N/A | 0.00 | | Li Zhongliang | Domestic Individual | 0.38% | 660,000.00 | 660,000.00 | N/A | 0.00 | | CICC-ABC-CICC Fengzhong No 36 Employee Participation in GEM Strategic Placement Collective Asset Management Plan | Other | 0.24% | 423,825.00 | 423,825.00 | N/A | 0.00 | | Sun Xiaoqiang | Domestic Individual | 0.22% | 388,000.00 | 388,000.00 | N/A | 0.00 | | Chen Hong | Domestic Individual | 0.17% | 300,000.00 | 300,000.00 | N/A | 0.00 | | Hu Jianguo | Domestic Individual | 0.16% | 278,100.00 | 278,100.00 | N/A | 0.00 | - The controlling shareholder, Sichuan New Media Group Co, Ltd, has no related-party relationship with the other shareholders listed above and is not a party acting in concert; China Youth Publishing Group Co, Ltd and China Youth Magazine have the same legal representative and are related parties[135] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, or 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; for details, please refer to the 2024 annual report[137] 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[138] - The company's actual controller did not change during the reporting period[138] VI. Information on Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[139] Section 7: Bond-related Matters The company has no bond-related matters to report for this period - Not applicable[141] Section 8: 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[143] II. Financial Statements This section presents the consolidated and parent company financial statements for the first half of 2025 1. Consolidated Balance Sheet As of June 30, 2025, the company's total consolidated assets were RMB 1.12 billion, with total liabilities of RMB 315 million and total equity of RMB 810 million Key Data from Consolidated Balance Sheet | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 497,303,490.72 | 487,921,340.51 | | Accounts Receivable | 75,741,147.23 | 85,139,789.41 | | Total Current Assets | 661,264,414.13 | 641,665,831.36 | | Long-term Equity Investments | 3,743,371.99 | 3,741,368.23 | | Right-of-use Assets | 193,444,075.88 | 226,889,841.73 | | Total Assets | 1,124,736,089.77 | 1,183,890,342.17 | | Contract Liabilities | 27,429,032.97 | 45,546,164.58 | | Lease Liabilities | 125,728,090.64 | 154,516,545.41 | | Total Liabilities | 315,002,609.41 | 377,354,396.52 | | Total Equity Attributable to Parent Company | 808,306,929.62 | 805,218,523.78 | | Total Equity | 809,733,480.36 | 806,535,945.65 | 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were RMB 1.10 billion, with total liabilities of RMB 301 million and total equity of RMB 796 million Key Data from Parent Company Balance Sheet | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 403,137,447.34 | 399,186,540.90 | | Accounts Receivable | 72,879,506.40 | 77,255,921.22 | | Total Current Assets | 560,998,997.24 | 542,155,460.10 | | Long-term Equity Investments | 87,461,649.95 | 77,459,646.19 | | Right-of-use Assets | 190,576,734.57 | 222,449,112.32 | | Total Assets | 1,096,722,917.15 | 1,145,844,346.04 | | Contract Liabilities | 20,633,952.68 | 36,866,274.56 | | Lease Liabilities | 125,728,090.64 | 153,823,415.08 | | Total Liabilities | 301,045,600.85 | 354,835,413.49 | | Total Equity | 795,677,316.30 | 791,008,932.55 | 3. Consolidated Income Statement For the first half of 2025, consolidated total operating revenue was RMB 135.21 million, a 29.09% increase, while net profit attributable to the parent company fell 52.00% to RMB 2.74 million Key Data from Consolidated Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 135,209,867.66 | 104,742,605.57 | | II. Total Operating Costs | 133,582,449.99 | 98,079,641.70 | | Of which: Cost of Revenue | 99,806,344.84 | 70,008,391.79 | | Selling Expenses | 12,411,014.99 | 10,665,174.97 | | Administrative Expenses | 20,235,388.14 | 22,545,820.89 | | R&D Expenses | 844,892.58 | 0.00 | | Finance Costs | -1,052,119.35 | -5,898,018.16 | | III. Operating Profit | 2,334,462.86 | 7,175,688.07 | | IV. Total Profit | 2,320,700.92 | 7,171,331.39 | | Less: Income Tax Expense | -526,833.79 | 1,420,013.91 | | V. Net Profit | 2,847,534.71 | 5,751,317.48 | | Net Profit Attributable to Parent Company | 2,738,405.84 | 5,705,130.15 | | Minority Interest Income | 109,128.87 | 46,187.33 | | VIII. Earnings Per Share: Basic EPS | 0.02 | 0.03 | | VIII. Earnings Per Share: Diluted EPS | 0.02 | 0.03 | 4. Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was RMB 115.02 million, a 28.39% increase, while net profit decreased by 44.01% to RMB 4.32 million Key Data from Parent Company Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | I. Operating Revenue | 115,018,353.40 | 89,583,794.81 | | Less: Cost of Revenue | 86,847,853.43 | 58,794,695.81 | | Selling Expenses | 6,872,647.34 | 5,898,544.10 | | Administrative Expenses | 16,607,063.48 | 19,870,746.37 | | R&D Expenses | 149,836.14 | 0.00 | | Finance Costs | -270,444.94 | -5,094,521.52 | | II. Operating Profit | 4,322,224.86 | 9,068,979.94 | | III. Total Profit | 4,318,383.75 | 9,074,641.45 | | Less: Income Tax Expense | 0.00 | 1,361,196.22 | | IV. Net Profit | 4,318,383.75 | 7,713,445.23 | 5. Consolidated Cash Flow Statement Net cash flow from operating activities for H1 2025 was RMB 34.68 million, a significant improvement from the negative RMB 13.20 million in the prior-year period Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 34,677,011.53 | -13,195,240.86 | | Net Cash Flow from Investing Activities | 14,915,408.83 | -54,138,499.54 | | Net Cash Flow from Financing Activities | -39,167,270.15 | -34,325,914.04 | | Net Increase in Cash and Cash Equivalents | 10,425,150.21 | -101,659,654.44 | | Cash and Cash Equivalents at End of Period | 497,259,990.72 | 433,669,983.41 | 6. Parent Company Cash Flow Statement The parent company's net cash flow from operating activities for H1 2025 was RMB 37.25 million, a substantial improvement from the negative RMB 7.14 million in the prior-year period Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 37,249,611.09 | -7,137,388.15 | | Net Cash Flow from Investing Activities | 5,258,139.40 | -52,297,955.82 | | Net Cash Flow from Financing Activities | -37,513,844.05 | -33,221,374.04 | | Net Increase in Cash and Cash Equivalents | 4,993,906.44 | -92,656,718.01 | | Cash and Cash Equivalents at End of Period | 403,097,947.34 | 351,301,890.22 | 7. Consolidated Statement of Changes in Equity Total consolidated equity increased by RMB 3.20 million in H1 2025, driven by net profit and a capital contribution Consolidated Statement of Changes in Equity | Item | Share Capital (RMB) | Capital Reserve (RMB) | Surplus Reserve (RMB) | Retained Earnings (RMB) | Total Equity Attributable to Parent (RMB) | Minority Interest (RMB) | Total Equity (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | II. Opening Balance | 173,368,000.00 | 217,637,343.20 | 54,954,325.75 | 359,258,854.83 | 805,218,523.78 | 1,317,421.87 | 806,535,945.65 | | III. Change in Current Period | 0.00 | 350,000.00 | 0.00 | 2,738,405.84 | 3,088,405.84 | 109,128.87 | 3,197,534.71 | | IV. Closing Balance | 173,368,000.00 | 217,987,343.20 | 54,954,325.75 | 361,997,260.67 | 808,306,929.62 | 1,426,550.74 | 809,733,480.36 | 8. Parent Company Statement of Changes in Equity The parent company's total equity increased by RMB 4.67 million in H1 2025, primarily due to net profit and a capital contribution Parent Company Statement of Changes in Equity | Item | Share Capital (RMB) | Capital Reserve (RMB) | Surplus Reserve (RMB) | Retained Earnings (RMB) | Total Equity (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | II. Opening Balance | 173,368,000.00 | 220,698,739.92 | 54,954,325.75 | 341,987,866.88 | 791,008,932.55 | | III. Change in Current Period | 0.00 | 350,000.00 | 0.00 | 4,318,383.75 | 4,668,383.75 | | IV. Closing Balance | 173,368,000.00 | 221,048,739.92 | 54,954,325.75 | 346,306,250.63 | 795,677,316.30 | III. Company's Basic Information Sichuan Newsnet Media (Group) Co, Ltd is an internet services company with a registered capital of RMB 173.37 million, listed on the SZSE in May 2021 - Company Name: Sichuan Newsnet Media (Group) Co, Ltd; Registered Capital: RMB 173.37 million; Legal Representative: Yang Miao[172] - The company belongs to the Internet and Related Services (I64) industry, with a business scope including value-added telecommunications, advertising, project investment, information management, and technology services[174] - The company includes 7 subsidiaries, such as Sichuan Mala Community Network Media Co, Ltd, in its consolidated financial statements for the reporting period[175] IV. Basis of Preparation of Financial Statements The financial statements are prepared on a going concern basis, with no material uncertainties affecting the company's ability to continue operations - The company's financial statements are prepared on a going concern basis[176] - The company has no events or conditions that cast significant doubt on its ability to continue as a going concern for the next 12 months from the end of the reporting period[177] V. Significant Accounting Policies and Estimates The company's financial statements adhere to corporate accounting standards, using RMB as the functional currency and detailing policies for key areas like revenue recognition and asset valuation - The financial statements prepared by the company comply with the requirements of corporate accounting standards, truly and completely reflecting the company's financial position, operating results, and cash flows[179] - The company has formulated specific accounting policies and estimates for transactions or events such as financial instrument impairment, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition based on its operational characteristics[178] Materiality Standards | Item | Materiality Standard | | :--- | :--- | | Significant individually assessed bad debt provision for accounts receivable | Single amount exceeding 0.3% of total assets | | Significant construction in progress projects | Single project investment exceeding 0.3% of total assets | | Significant subsidiaries, non-wholly-owned subsidiaries | Total assets/revenue/profit exceeding 10% of the group's total assets/revenue/profit | VI. Taxes The company is subject to various taxes, including VAT and corporate income tax, and benefits from several preferential tax policies such as exemptions for cultural enterprises Main Taxes and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales revenue and taxable service income, net of deductible input tax | 0%, 3%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Actual turnover tax paid | 7%, 5% | | Corporate Income Tax | Taxable income | 0%, 20% | | Property Tax | 1.2% of the residual value (original value less 30%) for self-owned property; 12% of rental income for leased property | 1.2%, 12% | | Education Surcharge | Actual turnover tax paid | 3% | | Local Education Surcharge | Actual turnover tax paid | 1%, 2% | - The company continues to enjoy an exemption from corporate income tax in 2025, and its revenue from party newspapers and periodicals continues to be exempt from VAT[248] - Some subsidiaries benefit from the small and micro-enterprise income tax incentive, with taxable income calculated at a reduced rate of 25% and taxed at 20%[248] - The subsidiary Chengdu Wangtai Culture Media Co, Ltd benefits from the Western Development preferential policy, with corporate income tax levied at a reduced rate of 15%[249] VII. Notes to Consolidated Financial Statement Items This section provides detailed breakdowns of items in the consolidated financial statements, including revenue by business type and a reconciliation of net profit to operating cash flow Breakdown of Operating Revenue and Costs | Contract Classification | Operating Revenue (RMB) | Operating Costs (RMB) | | :--- | :--- | :--- | | Business Type | 133,201,304.36 | 97,736,589.38 | | New Media Integrated Marketing | 79,966,096.41 | 64,939,461.64 | | Mobile Information Services | 44,887,839.67 | 26,273,578.86 | | Other Main Business | 8,347,368.28 | 6,523,548.88 | | By Timing of Revenue Recognition | 133,201,304.36 | 97,736,589.38 | | Revenue recognized at a point in time | 61,707,536.04 | 35,942,154.89 | | Revenue recognized over time | 71,493,768.32 | 61,794,434.49 | - As of the end of the reporting period, the revenue corresponding to performance obligations from signed but unfulfilled or partially fulfilled contracts amounted to RMB 79.05 million, of which RMB 55.31 million is expected to be recognized in 2025, RMB 19.80 million in 2026, and RMB 3.94 million in 2027[367] Supplementary Cash Flow Information: Reconciliation of Net Profit to Operating Cash Flow | Supplementary Information | Current Period (RMB) | Prior-Year Period (RMB) | | :--- | :--- | :--- | | Net Profit | 2,847,534.71 | 5,751,317.48 | | Add: Provision for Asset Impairment | -410,468.28 | 151,273.31 | | Depreciation of Fixed Assets | 3,104,715.57 | 2,294,840.57 | | Depreciation of Right-of-use Assets | 33,445,765.85 | 4,352,556.60 | | Amortization of Intangible Assets | 3,718,619.64 | 3,506,924.70 | | Amortization of Long-term Deferred Expenses | 1,811,224.08 | 437,021.02 | | Net Cash Flow from Operating Activities | 34,677,011.53 | -13,195,240.86 | VIII. R&D Expenditures Total R&D expenditure for the period was RMB 844,892.58, all of which was expensed and primarily consisted of direct labor costs R&D Expenditure Details | Item | Current Period (RMB) | Prior-Year Period (RMB) | | :--- | :--- | :--- | | Direct Labor Costs | 818,801.51 | 0.00 | | Rent and Depreciation | 509.89 | 0.00 | | Travel Expenses | 13,443.07 | 0.00 | | Other | 12,138.11 | 0.00 | | Total | 844,892.58 | 0.00 | | Of which: Expensed R&D | 844,892.58 | 0.00 | IX. Equity in Other Entities The company has seven subsidiaries and holds equity in an associate, from which it recognized an investment income of RMB 2,003.76 Composition of the Enterprise Group (Subsidiaries) | Subsidiary Name | Main Place of Business | Registered Office | Business Nature | Shareholding Ratio (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Mala Community Network Media Co, Ltd | Chengdu | Chengdu | Internet and Related Services | 100.00% | Newly established | | Sichuan Xinmei Hulian Culture Communication Co, Ltd | Chengdu | Chengdu | Internet and Related Services | 100.00% | Business combination under common control | | Sichuan Xinwang Public Network Information Management Co, Ltd | Chengdu | Chengdu | Internet and Related Services | 100.00% | Business combination not under common control | | Bazhong City Network Culture Media Co, Ltd | Bazhong | Bazhong | Internet and Related Services | 51.00% | Newly established | | Chengdu Wangtai Culture Media Co, Ltd | Chengdu | Chengdu | Advertising Agency | 100.00% | Newly established | | Sichuan Fabu Network Media Co, Ltd | Chengdu | Chengdu | Internet and Related Services | 100.00% | Newly established | | Sichuan Linghang Xinmei Culture Technology Co, Ltd | Chengdu | Chengdu | Internet and Related Services | 100.00% | Newly established | Significant Non-wholly-owned Subsidiaries | Subsidiary Name | Minority Shareholding Ratio | Profit/Loss Attributable to Minority Shareholders (RMB) | Minority Equity Balance at Period-End (RMB) | | :--- | :--- | :--- | :--- | | Bazhong City Network Culture Media Co, Ltd | 49.00% | 109,128.87 | 1,426,550.74 | Summari