新石文化(01740) - 2025 - 年度业绩

Announcement Overview This announcement is a supplementary report to New Culture Investment Group Limited's 2024 annual report, providing additional details on trade receivables Purpose and Scope of Announcement This announcement supplements the annual report of New Culture Investment Group Limited (the Group) for the year ended December 31, 2024, to provide additional information[2] Detailed Analysis of Trade Receivables The Group's trade receivables totaled RMB 167,687 thousand, with most credit-impaired and individually assessed, primarily involving four companies, and the collectively assessed expected credit loss rate significantly increased from 70.56% in 2023 to 93.97% in 2024 Details and Impairment of Trade Receivables During the reporting period, the Group's total trade receivables amounted to RMB 167,687 thousand, with most credit-impaired and individually assessed, primarily involving four companies, indicating significant bad debt risk. The collectively assessed expected credit loss rate significantly increased from 70.56% in 2023 to 93.97% in 2024 Balances Credit-Impaired and Individually Assessed 2024 Details of Credit-Impaired and Individually Assessed Trade Receivables as of December 31 (RMB Thousand) | Item | RMB Thousand | | :--- | :--- | | Credit-Impaired | 59,215 | | Individually Impaired | 108,472 | | –Company A | 84,659 | | –Company B | 9,213 | | –Company C | 6,800 | | –Company D | 7,800 | | Total Trade Receivables | 167,687 | Collectively Assessed Balances and Expected Credit Losses Expected Credit Loss Rates and Gross Carrying Amounts of Trade Receivables (RMB Thousand) | Metric | Less than 1 year | 1 to 2 years | 2 to 3 years | Over 3 years | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | December 31, 2024 | | | | | | | Expected Credit Loss Rate | 51.86% | 71.03% | 62.57% | 100.00% | 93.97% | | Gross Carrying Amount | 295 | 26,240 | 6,313 | 134,839 | 167,687 | | Expected Credit Loss | 153 | 18,637 | 3,950 | 134,839 | 157,579 | | December 31, 2023 | | | | | | | Expected Credit Loss Rate | 10.23% | 25.12% | 43.21% | 100.00% | 70.56% | | Gross Carrying Amount | 34,640 | 6,663 | 29,513 | 108,689 | 179,505 | | Expected Credit Loss | 3,544 | 1,674 | 12,753 | 108,689 | 126,660 | Analysis of Reasons for Increased Loss Rates The increase in trade receivables loss rates is primarily due to financial constraints, legal disputes, and liquidation procedures faced by business stakeholders, leading to long-unsettled payments, prompting the Group to make 100% impairment provisions for related receivables, involving Companies A, B, C, and D - Company A: Approximately RMB 84,216,000 in receivables (related to a 2020 TV series) due to Company A's financial constraints and the Group's lack of direct involvement as an investor in distribution, facing indefinite settlement delays, 100% impairment provision made[6] - Company B: Approximately RMB 3,574,000 in receivables (related to a 2020 TV series) due to Company B being in liquidation since 2024, significantly increasing credit risk, 100% impairment provision made[6] - Company C: Approximately RMB 6,800,000 in receivables (related to a TV series) due to Company C management changes, significantly increasing credit risk, 100% impairment provision made[8] - Company D: Approximately RMB 7,800,000 in receivables (related to a web series) due to Company D's failure to fulfill guaranteed payment agreements and non-payment even after a favorable judgment, significantly increasing credit risk, 100% impairment provision made[8] Methodology and Basis for Impairment Determination The Group uses a provision matrix for impairment analysis, deriving provision rates based on aging periods and overdue dates for customer segments, reflecting probability-weighted outcomes, time value of money, and available historical, current, and future economic forecasts, without considering independent valuers - Impairment analysis uses a provision matrix, deriving provision rates based on customer segment aging periods and overdue dates[9] - Calculations reflect probability-weighted outcomes, time value of money, and reasonable and reliable information regarding past events, current conditions, and forecasts of future economic conditions[9] - The Group did not consider independent valuers for impairment assessment[10] Macro Reasons for Deterioration of Trade Receivables Aging The deterioration in trade receivables aging is primarily attributed to the post-pandemic downturn in the TV series industry, disrupting TV stations' cash flow, limiting financing channels, and consequently affecting business stakeholders' payment ability, exacerbating the Group's receivables delays - Post-pandemic downturn in the TV series industry severely disrupted TV stations' cash flow, limiting their ability to make timely payments[12] - Widespread economic recession restricted TV stations' financing channels, exacerbating difficulties in timely settlement of receivables[12] Risk Management and Recovery Measures The Group has taken measures such as demand letters, negotiating alternative solutions, and initiating legal proceedings to recover receivables. Favorable judgments were obtained against Companies B and D, but enforcement faces challenges; for Companies A and C, negotiation or legal consultation is being considered Recovery Actions Taken and Progress The Group has taken measures such as demand letters, negotiating alternative solutions, and initiating legal proceedings to recover receivables. Favorable judgments were obtained against Companies B and D, but enforcement faces challenges; for Companies A and C, negotiation or legal consultation is being considered - The Group has taken measures including: issuing demand letters to business stakeholders, discussing alternative solutions, and initiating legal proceedings[9] - Company B: Favorable judgment obtained in 2020, but as Company B is in liquidation, the Group will consult lawyers to pursue approximately RMB 9,213,000 through legal procedures[11] - Company D: Favorable judgment obtained in November 2024, but Company D lacks funds to fulfill the judgment; the Group is consulting lawyers and initiated enforcement proceedings in May 2025[11] - Companies A and C: To maintain positive relationships, no legal action has been taken yet, but alternative solutions are being negotiated or legal consultation is being considered[11] Due Diligence and Credit Risk Assessment Work The Board believes sufficient due diligence and risk assessment were conducted before contracting with business stakeholders, including credit verification, management discussions, industry payment performance analysis, and internal credit assessment, but the significant increase in impairment losses primarily stems from unforeseen external economic recession - The Board believes sufficient due diligence and risk assessment were conducted, including verifying business stakeholders' credit, discussing with management, analyzing industry payment performance, and internal credit assessment[13][14] - The significant increase in impairment losses is primarily due to external factors beyond the Group's control, such as an unforeseen economic recession[13] - As of December 31, 2024, over 80% of total trade receivables were overdue for more than three years, indicating these receivables originated from contracts over three years ago[13] Subsequent Recovery of Trade Receivables As of July 31, 2025, approximately RMB 2,428,800 of overdue trade receivables from FY2024 have been successfully recovered - As of July 31, 2025, approximately RMB 2,428,800 of overdue trade receivables from FY2024 have been recovered[15] Other Information This section provides details regarding the composition of the Board of Directors as of the announcement date Board of Directors Information As of the announcement date, August 27, 2025, New Culture Investment Group Limited's Board of Directors comprises 6 executive directors, including Chairman and Executive Director Mr. Liu Naiyue, 1 non-executive director, and 4 independent non-executive directors - As of August 27, 2025, the Board includes 6 executive directors (Mr. Liu Naiyue as Chairman), 1 non-executive director, and 4 independent non-executive directors[16]