歌华有线(600037) - 2025 Q2 - 季度财报

Definitions This section provides definitions for key terms used in the report, including the reporting period, 4K standard, and cloud service models - The reporting period is from January 1, 2025, to June 30, 2025[12] - 4K refers to the ultra-high-definition video standard with a pixel resolution of 4096×2160[12] - IaaS, PaaS, and SaaS denote the three service models of cloud computing[12] Company Profile and Key Financial Indicators This section presents the company's basic information, contact details, changes in registration, information disclosure, stock overview, and key financial performance metrics for the reporting period Company Information This section discloses the company's Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Beijing Gehua CATV Network Co., Ltd., abbreviated as Gehua CATV[14] - The company's legal representative is Guo Zhangpeng[14] Contact Person and Information This section provides contact details for the Board Secretary and Securities Affairs Representative - The Board Secretary is Ding Yinglei, and the Securities Affairs Representative is Yang Qin[15] - The contact address for both is Gehua Building, No. 1 Qinglong Hutong, Dongcheng District, Beijing[15] Brief Introduction to Changes in Basic Information This section details historical changes in the company's registered address and lists its office address, website, and email - The company's registered address changed on June 7, 2021, from "No. 35 Huayuan North Road (East Gate), Haidian District, Beijing, China" to "4th Floor, No. 87 West Third Ring North Road, Haidian District, Beijing, China"[16] - The company's office address is Gehua Building, No. 1 Qinglong Hutong, Dongcheng District, Beijing, and its website is www.bgctv.com.cn[16](index=16&type=chunk) Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section discloses the company's designated newspapers for information disclosure, website for semi-annual reports, and report custody location - The company's designated newspapers for information disclosure are Securities Times and China Securities Journal[17] - The website for publishing semi-annual reports is www.sse.com.cn[17](index=17&type=chunk) - The company's semi-annual report custody location is the Investment and Financing Department (Board Office)[18] Brief Introduction to Company Stock This section provides information on the company's stock type, listing exchange, stock abbreviation, and code - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[19] - The stock abbreviation is Gehua CATV, and the stock code is 600037[19] Company's Key Accounting Data and Financial Indicators Operating revenue decreased by 11.90% year-on-year, net loss attributable to shareholders narrowed, and net cash flow from operating activities decreased by 61.00% Key Accounting Data and Financial Indicators (Jan-Jun 2025) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 933,257,788.57 | 1,059,300,192.83 | -11.90 | | Total Profit | -8,891,576.58 | -43,458,200.48 | Not Applicable | | Net Profit Attributable to Shareholders of Listed Company | -9,694,305.79 | -44,774,217.03 | Not Applicable | | Net Cash Flow from Operating Activities | 85,662,276.00 | 219,653,246.64 | -61.00 | | Net Assets Attributable to Shareholders of Listed Company (Period-End) | 12,663,259,657.28 | 12,710,531,965.94 | -0.37 | | Total Assets (Period-End) | 15,854,454,336.08 | 16,037,012,558.37 | -1.14 | | Basic Earnings Per Share (RMB/share) | -0.01 | -0.03 | Not Applicable | | Diluted Earnings Per Share (RMB/share) | -0.01 | -0.03 | Not Applicable | | Weighted Average Return on Net Assets (%) | -0.08 | -0.35 | Increased by 0.27 percentage points | - Net loss attributable to shareholders for the current period was RMB 9.69 million, a significant narrowing from a loss of RMB 44.77 million in the prior year[23] - Net cash flow from operating activities for the current period was RMB 85.66 million, a 61.00% decrease year-on-year[23] Non-recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled RMB 15.60 million, primarily from government subsidies, fair value changes of financial assets, and other non-operating income Non-recurring Gains and Losses Items and Amounts (Jan-Jun 2025) | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | -196,406.06 | Primarily net loss from disposal of fixed assets in the current period | | Government grants recognized in current profit or loss | 6,129,550.74 | Primarily government grants received and amortized in the current period | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities | 2,785,270.37 | Primarily due to changes in fair value of financial assets in the current period | | Other non-operating income and expenses apart from the above | 6,952,907.70 | | | Less: Income tax impact | 73,056.88 | | | Total | 15,598,265.87 | | - Total non-recurring gains and losses amounted to RMB 15.60 million[24] Management Discussion and Analysis This section discusses the company's industry, main business, operational performance, core competencies, and key financial changes during the reporting period Explanation of the Company's Industry and Main Business during the Reporting Period The broadcasting and television network industry faces policy support and market competition, with the company actively transforming into a high-quality cultural service and smart broadcasting provider - The State Administration of Radio and Television emphasizes the main channel and position of broadcasting networks, proposing to adhere to the three attributes of ideology, public service, and technology industry, and to comprehensively promote the "two governance" political, public service, and systemic projects[27] - The industry faces challenges from user consumption habits shifting towards mobile internet, small screens, and streaming media, leading to significant loss of traditional cable TV users due to the rapid rise of new media[28] - The company is primarily responsible for the development, operation, management, and maintenance of Beijing's broadcasting and television network, and engages in broadcasting and television program reception and transmission, network information services, and video-on-demand businesses[30] - The company is fully committed to strategic transformation from a "single cable TV operator" to a "high-quality cultural service operator" and "smart broadcasting service provider"[31] Discussion and Analysis of Operations In the first half, Gehua CATV focused on party building, consolidating its base, promoting UHD TV, optimizing channel sequencing, managing "Relive Classics" channel, strengthening government and enterprise business, and advancing media asset platform construction and network integration Implementing the "China (Beijing) Ultra-High-Definition TV Pioneer Action Plan" and Advancing End-to-End UHD Development The company successfully implemented full-network TV channel sequence optimization and SD channel shutdown on June 28, enhancing user experience and setting an example for national cable TV network development - The company successfully implemented full-network TV channel sequence optimization and simultaneous SD channel shutdown on June 28, ensuring safe and stable viewing with positive market feedback[32] - The company continues to provide free 4K ultra-high-definition set-top boxes to household users and implements a key account manager responsibility system for enterprise users to ensure comprehensive outreach[32] - The company scientifically formulated a channel sequence adjustment plan, highlighting ultra-high-definition and high-definition channels while fully considering users' existing viewing habits[33] Successfully Operating the "Relive Classics" Channel and Achieving Good Social Benefits The "Relive Classics" channel has maintained leading viewership since its launch, reaching 78.62 million households and over 300 million viewers by June 30, 2025, achieving significant social benefits through content quality, HD restoration, and new media operations - As of June 30, 2025, the "Relive Classics" channel (cable TV) accumulated 78.62 million households and 2.67 billion hours of viewing, reaching over 300 million viewers[36] - The company diligently advanced copyright negotiations and content organization for the 2025 annual exhibition list, completing authorization and media delivery for 236 programs from 68 entities/individuals[36] - The company performed HD restoration on 65 exhibition works, simultaneously optimizing subtitles to enhance the viewer experience[36] Consolidating "Dual Governance" Achievements and Promoting High-Quality Development The company focused on government reception hotels and unassigned hotels, expanded vertical market business, tested and piloted plug-in micro set-top boxes, and continued the aerospace network integration project, achieving user migration - In the first half, 6 new government reception hotels and 54 unassigned hotels were signed[38] - By the end of June, vertical business cable TV users totaled 364,800 terminals, an increase of 24,000 terminals or 7% from the end of 2024[38] - The aerospace network integration project has migrated 38,463 TV users, 10,683 broadband users, 3,075 VOD users, and 187 hotel users[39] Seizing Government and Enterprise Business Opportunities for Profit Growth The company actively advanced the China Broadcasting National Cultural Big Data Service Platform project, completed emergency broadcasting command hall renovation, steadily progressed the connected vehicle project, and expanded professional information services, fintech, and cultural digitalization, collaborating with multiple entities - The hardware installation for the China Broadcasting National Cultural Big Data Service Platform project (application support) reached 70%, with all software platforms deployed in the cloud[40] - The company completed the renovation of the emergency broadcasting command hall, including the installation of a 4K display screen, power supply, operating console, and surveillance cameras[40] - The company steadily advanced the Connected Vehicle 3.0 project, completed optical cable construction for the Tongzhou expansion, and coordinated the Connected Vehicle 4.0 project[40] Promoting Media Asset Platform Construction and Enhancing Content Quality The company strictly controlled content security, achieved full coverage of provincial satellite HD channels, strengthened UHD content, optimized review columns, enhanced "Kuaidian" product competitiveness, and reinforced public service platforms to improve social benefits - The company successfully completed security tasks for important events like the National Two Sessions, deeply carried out first-screen publicity and guidance, and launched main theme zones such as "Chinese Dream New Journey"[41] - The company was the first nationwide to achieve full coverage of provincial satellite HD channels, including Qinghai, Shanxi, Xinjiang, Bingtuan, Ningxia, and Tibet Satellite TV[41] - In the first half, over 1,000 hours of 4K special zone programs were updated, with over 6,000 hours available online; the review application was revamped and upgraded, optimizing page layout, simplifying interactive operations, and adding frequently watched channel categories[42] Implementing "One Province, One Network" Integration Requirements, Advancing Zhuozhou Gehua CATV Network Integration into Hebei Broadcasting The company actively pursued the integration of Zhuozhou Gehua CATV network into Hebei Broadcasting, completing asset integration preparations, advancing technical and business integration plans, and smoothly settling personnel - The company efficiently completed legal due diligence and asset valuation for Zhuozhou Gehua CATV network integration, and promptly fulfilled board review and information disclosure procedures[43] - The company actively advanced technical and business integration, finalized the business integration plan, and pushed for agreement signing[43] - The company closely communicated with Hebei Broadcasting, achieving the expected goal of personnel reallocation, with overall stable and orderly personnel settlement[43] Optimizing Institutional Mechanisms and Strengthening Refined Enterprise Management The company fully implemented the "Service Leadership" strategy, improved safety production supervision, strengthened internal control and audit rectification, deepened grid-based operation and maintenance integration, implemented total wage management and performance appraisal, and refined comprehensive budget and material procurement management - The company improved its safety production supervision system, established a dedicated safety management department, and implemented a full staff safety production responsibility system[44] - The company strengthened internal control, actively promoted special audit rectification, and carried out special tasks such as accounts receivable collection, construction in progress cleanup, and pipeline verification[44] - The company implemented full coverage of total wage management across all units, improved its performance appraisal system, piloted task-list based unit performance appraisal, and promoted quantitative employee performance appraisal[44] Analysis of Core Competencies during the Reporting Period As one of the first cultural system reform pilot units, the company holds the operating rights for Beijing's cable TV network, continuously increases 5G user scale, and possesses four core advantages: platform, network, terminal, and data Platform Advantage The company has built an industry-leading "Gehua Cloud" platform, achieving "five-in-one" integration of platform, content, channels, operations, and management, with full IaaS, PaaS, SaaS capabilities - The company has built the "Gehua Cloud" platform, a leader in the broadcasting industry, achieving "five-in-one" integration of platform, content, channels, operations, and management[47] - The platform has achieved a hybrid cloud architecture with private and public cloud linkage, possessing full cloud capabilities to provide IaaS, PaaS, and SaaS services[47] Network Advantage The company has built a city-wide wired and mobile bidirectional network, continuously upgrading high-speed internet access and data network transmission, and enhancing iBOSS mobile functions to ensure network operation and maintenance - The company has built a city-wide wired and mobile bidirectional network, continuously promoting the construction, renovation, and upgrade of high-speed internet access and data network transmission[48] - The company enhanced the functions of iBOSS mobile, grid mobile, and business analysis mobile, and advanced data center system upgrade, providing strong support for bidirectional network O&M[48] Terminal Advantage The company developed a series of set-top box terminals supporting various home video application scenarios, actively promoting R&D and market expansion of 4K UHD smart, IP, and gateway set-top boxes, with TV APP and smart home products entering market promotion - The company developed a series of set-top box terminal products supporting various user home video application scenarios[49] - The company actively promoted the R&D and market expansion of 4K ultra-high-definition smart set-top boxes, IP set-top boxes, and gateway set-top boxes[49] - R&D efforts for TV APP, smart TV USB CAM large card, and Gehua Smart Home have made progress and entered the market promotion stage[49] Data Advantage The company actively leverages data assets, strengthening user viewing behavior analysis to provide more precise products and content services and enhance user experience - The company actively leveraged data asset value, strengthening user viewing behavior data analysis[50] - Through data analysis, the company continuously identifies user preferences to provide more precise products and content services and enhance user experience[50] Key Operating Performance during the Reporting Period Operating revenue and costs decreased, financial expenses significantly changed due to reduced interest income, and R&D investment decreased; asset-liability structure changed, with increased inventory and financial assets, and decreased construction in progress and employee compensation; key subsidiaries were profitable, while Zhuozhou Gehua CATV was at a loss Analysis of Main Business Operating revenue and costs both decreased by over 11% year-on-year, financial expenses significantly changed due to reduced interest income, R&D expenses decreased by 38.97% year-on-year, and net cash flow from operating activities decreased by 61.00% year-on-year Financial Statement Related Account Changes Analysis (Jan-Jun 2025) | Item | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change Percentage (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 933,257,788.57 | 1,059,300,192.83 | -11.90 | | Operating Cost | 863,342,680.55 | 971,481,775.74 | -11.13 | | Selling Expenses | 52,831,554.27 | 59,797,306.56 | -11.65 | | Administrative Expenses | 45,156,539.93 | 45,434,876.12 | -0.61 | | Financial Expenses | -27,753,043.89 | -95,343,206.04 | Not Applicable | | R&D Expenses | 31,702,357.15 | 51,941,876.08 | -38.97 | | Net Cash Flow from Operating Activities | 85,662,276.00 | 219,653,246.64 | -61.00 | - The change in financial expenses was primarily due to a significant amount of interest income in the prior year from early settlement of some bank deposits[52] - The change in R&D expenses was primarily due to reduced R&D investment in the current period[54] Analysis of Assets and Liabilities At the end of the reporting period, inventory increased by 79.99% year-on-year, trading financial assets significantly increased, construction in progress decreased by 40.31% year-on-year, employee compensation decreased by 50.06% year-on-year, and other payables increased by 102.42% year-on-year Asset and Liability Status Changes (June 30, 2025) | Item Name | Current Period End Amount (RMB) | Current Period End % of Total Assets | Prior Year End Amount (RMB) | Prior Year End % of Total Assets | Current Period End Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inventory | 255,950,821.45 | 1.61 | 142,205,198.28 | 0.89 | 79.99 | Primarily due to increased contract performance expenditures in the current period compared to the prior year | | Construction in Progress | 410,845,351.40 | 2.59 | 688,312,601.36 | 4.29 | -40.31 | Primarily due to subsidiary engineering projects being transferred to fixed assets | | Trading Financial Assets | 1,258,357,123.93 | 7.94 | - | - | Not Applicable | Primarily due to an increase in wealth management products not yet matured at the end of the current reporting period | | Employee Compensation Payable | 91,522,828.79 | 0.58 | 183,266,772.56 | 1.14 | -50.06 | Primarily due to the payment of year-end bonuses accrued in the prior year during the current reporting period | | Other Payables | 66,318,991.72 | 0.42 | 32,762,466.05 | 0.20 | 102.42 | Primarily due to an increase in unpaid amounts at the end of the current period compared to the beginning of the year | - RMB 1.59 million of other monetary funds are restricted as margin deposits[57] Analysis of Investment Status The company's financial assets measured at fair value totaled RMB 1.72 billion at period-end, with fair value change gains of RMB 2.79 million, mainly due to a significant increase in purchases of trading financial assets Financial Assets Measured at Fair Value (Jan-Jun 2025) | Asset Category | Beginning Balance (RMB) | Fair Value Change Gains/Losses in Current Period (RMB) | Purchase Amount in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Stocks | 185,376,508.65 | -4,553,107.23 | - | 180,823,401.42 | | Other | 255,504,911.37 | -545,785.38 | 33,897,113.89 | 280,710,566.56 | | Trading Financial Assets | - | 7,884,079.18 | 1,250,000,000.00 | 1,258,357,123.93 | | Total | 440,881,420.02 | 2,785,186.57 | 1,283,897,113.89 | 1,719,891,091.91 | - Current period purchases of trading financial assets amounted to RMB 1.25 billion, leading to a significant increase in period-end trading financial assets[59] Analysis of Major Holding and Participating Companies Among major subsidiaries, Beijing Gehua CATV Engineering Management and Digital Media were profitable, while Zhuozhou Gehua CATV and Gehua CATV Investment Management incurred losses; associate Beijing Gehua Silk Road Golden Bridge Media Industry Investment Partnership achieved net profit Major Holding and Participating Companies Financial Status (Jan-Jun 2025) | Company Name | Company Type | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Gehua CATV Engineering Management Co., Ltd. | Subsidiary | 100,000,000.00 | 704,361,268.50 | 239,679,457.62 | 82,116,189.79 | 5,506,685.17 | 5,743,142.01 | | Beijing Gehua CATV Digital Media Co., Ltd. | Subsidiary | 40,000,000.00 | 202,809,979.48 | 141,713,877.78 | 64,117,296.30 | 3,207,772.49 | 2,684,301.42 | | Zhuozhou Gehua CATV Network Co., Ltd. | Subsidiary | 35,534,495.00 | 590,157,848.99 | -144,044,327.41 | 1,256,184.59 | -15,025,706.71 | -15,025,706.70 | | Gehua CATV Investment Management Co., Ltd. | Subsidiary | 400,000,000.00 | 476,372,544.83 | 410,192,778.73 | 27,777,066.24 | -7,688,160.20 | -7,865,385.24 | | Beijing Gehua Silk Road Golden Bridge Media Industry Investment Partnership (Limited Partnership) | Associate | 1,500,000,000.00 | 946,583,794.52 | 944,160,209.00 | - | 0 | 18,706,427.60 | - Zhuozhou Gehua CATV Network Co., Ltd. reported negative net assets of RMB 144.04 million and a net loss of RMB 15.03 million, indicating a loss-making status[62] - Beijing Gehua Silk Road Golden Bridge Media Industry Investment Partnership (Limited Partnership) achieved a net profit of RMB 18.71 million[63] Other Disclosures The company faces risks such as user loss, increased costs, and declining profits, but will respond through a "Service Leadership" strategy, "Cable + 5G + Government/Enterprise" integrated development, and a "Quality Improvement, Efficiency Enhancement, and Return" action plan Potential Risks The industry faces user loss, rising costs, declining profits, immature innovative businesses, and the need to improve network technology and infrastructure capacity; the company will address these through a "Service Leadership" strategy and "Cable + 5G + Government/Enterprise" integrated development - The company faces user loss, increased costs, declining profits, immature innovative businesses, and the need to improve network product technology and infrastructure capacity[64] - The company will uphold its role as the main channel for ideology, deepen "dual governance" efforts, comprehensively improve user TV viewing experience, and enhance cable TV's attractiveness and competitiveness[65] - The company adheres to "three attributes," practices the "concentric circle strategy," promotes "Cable + 5G + Government/Enterprise" full-service integrated development, innovates, reduces costs, increases efficiency, and drives transformation and high-quality innovative development[65] Other Disclosures The company implemented a "Quality Improvement, Efficiency Enhancement, and Return" action plan, optimizing cable TV, broadband, and 5G user acquisition, accelerating cultural industry layout, winning the National Cultural Big Data Service Platform project, formulating a valuation enhancement plan, implementing "One Province, One Network" integration, stabilizing investment returns, and strengthening investor communication - For cable TV business, by the end of June, 240,000 SD set-top boxes were withdrawn from the market, and 154,900 4K ultra-high-definition set-top boxes were promoted year-to-date[66] - The company won the China Broadcasting National Cultural Big Data Service Platform project (application support) with a contract value of RMB 549.37 million (including tax), leveraging the national cultural digitalization strategy to accelerate cultural industry layout[69] - The company formulated a 2025 valuation enhancement plan, including improving operational quality and profitability, actively exploring M&A, stably implementing cash dividends, and strengthening investor communication to further enhance its investment value[70] - The company exchanged its wholly-owned subsidiary Zhuozhou Gehua's cable network assets and business for 1.79% equity in Hebei Broadcasting, with an appraisal increment of RMB 19.42 million, optimizing asset structure and resource allocation[71] - The company distributed a 2024 annual cash dividend of RMB 0.27 per 10 shares (including tax), totaling RMB 37.58 million (including tax), to boost investor confidence and protect shareholder rights[73] Corporate Governance, Environment and Society This section covers changes in the company's directors, supervisors, and senior management, and its semi-annual profit distribution plan Changes in Directors, Supervisors, and Senior Management Mr. Hu Zhipeng, Director and Chief Accountant, retired, and Ms. Wu Chunyan was appointed as the new Chief Accountant - Mr. Hu Zhipeng, Director and Chief Accountant, resigned from his positions due to reaching the statutory retirement age[76] - The company's Seventh Board of Directors' Seventh Meeting on March 28, 2025, approved the appointment of Ms. Wu Chunyan as the company's Chief Accountant[76] Profit Distribution or Capital Reserve Conversion Plan The company does not plan any profit distribution or capital reserve conversion for the semi-annual period - The proposed semi-annual profit distribution plan and capital reserve conversion plan is "No"[77] - The number of bonus shares, dividends, and conversion shares per 10 shares are all "Not Applicable"[77] Significant Matters This section details significant legal proceedings, related party transactions, and the progress of raised funds utilization Significant Litigation and Arbitration Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters in the current reporting period[80] Significant Related Party Transactions The company engaged in related party transactions for daily operations, including receiving and providing services, and conducted an asset swap with Hebei Broadcasting involving Zhuozhou Gehua's network assets for equity Related Party Transactions Related to Daily Operations The company received RMB 53.46 million in services from related parties, mainly for program fees, data transmission, and internet traffic; it provided RMB 109.09 million in services, primarily for group data, 5G cooperation, and information services Services Received from Related Parties (Jan-Jun 2025) | Related Party | Related Transaction Content | Related Transaction Amount (RMB) | Percentage of Similar Transactions (%) | | :--- | :--- | :--- | :--- | | Oriental Jia Ying TV Cinema Media Co., Ltd. | Program fees, promotion service fees | 19,750,629.05 | 37.08 | | China Broadcasting Entertainment Culture Media Co., Ltd. | Data transmission services | 32,070,631.14 | 60.21 | | China Broadcasting Smart Technology (Beijing) Co., Ltd. | Internet egress traffic fees | 808,094.02 | 1.52 | | China Broadcasting Mobile Network Co., Ltd. | Lease fees | 597,735.85 | 1.12 | Services Provided to Related Parties (Jan-Jun 2025) | Related Party | Related Transaction Content | Related Transaction Amount (RMB) | Percentage of Similar Transactions (%) | | :--- | :--- | :--- | :--- | | China Cable TV Network Co., Ltd. | Group data business revenue | 10,404,136.58 | 9.55 | | China Broadcasting Mobile Network Co., Ltd. | 5G business cooperation | 12,666,041.48 | 11.63 | | China Broadcasting Network Co., Ltd. | Technical service revenue | 2,231,132.08 | 71.46 | | China Broadcasting Network Co., Ltd. | Information business revenue | 75,591,508.24 | - | - In the reporting period, the company paid RMB 19.75 million to Oriental Jia Ying TV Cinema Media Co., Ltd. for program and promotion services[83] - In the reporting period, the company provided technical and information services to China Broadcasting Network Co., Ltd., collecting RMB 2.23 million in technical service fees and RMB 75.59 million in information service fees[84] Related Party Transactions Involving Asset or Equity Acquisition/Disposal To implement "One Province, One Network" integration, the company exchanged its wholly-owned subsidiary Zhuozhou Gehua CATV Network Co., Ltd.'s cable TV network assets and business for a portion of China Broadcasting Hebei Network Co., Ltd.'s equity - The company exchanged its wholly-owned subsidiary Zhuozhou Gehua CATV Network Co., Ltd.'s cable TV network assets and business for a portion of China Broadcasting Hebei Network Co., Ltd.'s equity[87] - This transaction aims to implement the "One Province, One Network" integration plan in the "National Cable TV Network Integration and Development Implementation Plan" and further improve the company's asset operating efficiency[87] - Specific details are disclosed in the "Announcement on Asset Swap and Related Party Transactions" and "Announcement on Progress of Asset Swap and Related Party Transactions" published by the company on the Shanghai Stock Exchange website on February 7, 2025, and August 28, 2025, respectively[87] Explanation of Progress in Use of Raised Funds As of the reporting period end, the company cumulatively invested RMB 397.0 million, representing 12.09% of the net raised funds, primarily in cloud service platform upgrades and content platform operations Overall Use of Raised Funds As of the reporting period end, total raised funds were RMB 3.30 billion, net raised funds RMB 3.28 billion, with cumulative investment of RMB 397.0 million, representing 12.09% of the total Overall Use of Raised Funds (As of Reporting Period End) | Indicator | Amount (RMB million) | | :--- | :--- | | Total Raised Funds | 3,299.99 | | Net Raised Funds | 3,283.49 | | Total Committed Investment of Raised Funds in Prospectus or Offering Circular | 3,300.00 | | Cumulative Investment of Raised Funds as of Reporting Period End | 396.97 | | Cumulative Investment Progress of Raised Funds as of Reporting Period End (%) | 12.09 | - As of the reporting period end, total raised funds were RMB 3.30 billion, and net raised funds were RMB 3.28 billion[91] - Cumulative investment of raised funds totaled RMB 397.0 million, with a cumulative investment progress of 12.09%[91] Details of Raised Fund Investment Projects Key projects include cloud service platform upgrades and application expansion, and high-quality copyright content platform operations, with cumulative investments of RMB 356.22 million and RMB 40.75 million, respectively Details of Raised Fund Investment Projects (As of Reporting Period End) | Committed Investment Project | Planned Investment of Raised Funds (RMB million) | Cumulative Investment of Raised Funds as of Reporting Period End (RMB million) | Investment Progress (%) | | :--- | :--- | :--- | :--- | | Cloud Service Platform Upgrade and Application Expansion Project | 1,400.00 | 356.22 | 25.44 | | High-Quality Copyright Content Platform Operation Project | 1,883.50 | 40.75 | 2.16 | | Total | 3,283.50 | 396.97 | - | - The Cloud Service Platform Upgrade and Application Expansion Project has a planned investment of RMB 1.40 billion, with a cumulative investment of RMB 356.22 million, and an investment progress of 25.44%[92] - The High-Quality Copyright Content Platform Operation Project has a planned investment of RMB 1.88 billion, with a cumulative investment of RMB 40.75 million, and an investment progress of 2.16%[92] Share Changes and Shareholder Information This section details changes in share capital and shareholder structure, including major shareholders Changes in Share Capital No changes in the company's total share capital or share structure occurred during the reporting period - No changes in the company's total share capital or share structure occurred during the reporting period[95] Shareholder Information As of the reporting period end, the company had 54,584 common shareholders; the top two shareholders were China Broadcasting Network Co., Ltd. and Beijing Beiguang Media Investment Development Center Co., Ltd., holding 19.09% and 18.34% respectively - Total common shareholders as of the reporting period end: 54,584[97] Top Ten Shareholders' Shareholding (As of Reporting Period End) | Shareholder Name | Ending Shareholding Quantity (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China Broadcasting Network Co., Ltd. | 265,635,026 | 19.09 | State-owned Legal Person | | Beijing Beiguang Media Investment Development Center Co., Ltd. | 255,217,966 | 18.34 | State-owned Legal Person | | Central Huijin Asset Management Co., Ltd. | 29,868,200 | 2.15 | State-owned Legal Person | | Oriental Pearl New Media Co., Ltd. | 20,311,442 | 1.46 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 10,361,201 | 0.74 | Other | - Beijing Beiguang Media Investment Development Center Co., Ltd. and Beijing Broadcasting Group Co., Ltd. are under the same ultimate control; China Broadcasting Network Co., Ltd. is the controlling shareholder of China Broadcasting Jiangxi Network Co., Ltd[100] Bond-Related Information This section is empty, indicating no bond-related information to disclose Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with notes on accounting policies and financial risks Audit Report The semi-annual report is unaudited - This semi-annual report is unaudited[5] Financial Statements This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the financial position and operating results at period-end Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were RMB 15.85 billion, total liabilities RMB 3.19 billion, and equity attributable to parent company owners RMB 12.66 billion, all slightly decreased from year-end Consolidated Balance Sheet Key Data (June 30, 2025) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Monetary Funds | 7,309,771,868.82 | 8,670,102,536.01 | | Trading Financial Assets | 1,258,357,123.93 | - | | Total Assets | 15,854,454,336.08 | 16,037,012,558.37 | | Total Liabilities | 3,191,194,678.80 | 3,326,480,592.43 | | Total Equity Attributable to Parent Company Owners | 12,663,259,657.28 | 12,710,531,965.94 | - As of June 30, 2025, consolidated total assets were RMB 15.85 billion, a 1.14% decrease from December 31, 2024[23][107] - As of June 30, 2025, total equity attributable to parent company owners was RMB 12.66 billion, a 0.37% decrease from December 31, 2024[23][107] Parent Company Balance Sheet As of June 30, 2025, parent company total assets were RMB 15.16 billion, total liabilities RMB 2.68 billion, and total owners' equity RMB 12.48 billion, all slightly decreased from year-end Parent Company Balance Sheet Key Data (June 30, 2025) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Monetary Funds | 6,468,258,520.95 | 7,793,175,741.01 | | Trading Financial Assets | 1,258,357,123.93 | - | | Total Assets | 15,158,044,062.87 | 15,260,147,031.86 | | Total Liabilities | 2,682,809,458.81 | 2,706,881,503.40 | | Total Owners' Equity | 12,475,234,604.06 | 12,553,265,528.46 | - As of June 30, 2025, parent company total assets were RMB 15.16 billion, and total owners' equity was RMB 12.48 billion[110] Consolidated Income Statement In the first half of 2025, consolidated total operating revenue was RMB 933.26 million, a 11.90% decrease year-on-year, with a net loss of RMB 9.69 million, significantly narrowed from RMB 44.77 million in the prior year Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 933,257,788.57 | 1,059,300,192.83 | | Total Operating Cost | 975,108,282.68 | 1,043,108,530.80 | | Total Profit | -8,891,576.58 | -43,458,200.48 | | Net Profit | -9,694,305.79 | -44,774,217.03 | | Basic Earnings Per Share (RMB/share) | -0.01 | -0.03 | - 2025 semi-annual total operating revenue was RMB 933.26 million, a 11.90% decrease year-on-year[23][112] - 2025 semi-annual net profit was a loss of RMB 9.69 million, significantly narrowed from a loss of RMB 44.77 million in the prior year[23][114] Parent Company Income Statement In the first half of 2025, parent company operating revenue was RMB 845.08 million, with a net loss of RMB 40.45 million, which widened from a loss of RMB 34.57 million in the prior year Parent Company Income Statement Key Data (Jan-Jun 2025) | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | Operating Revenue | 845,081,444.51 | 897,990,361.40 | | Operating Cost | 779,846,227.76 | 834,422,441.96 | | Total Profit | -40,452,921.53 | -40,310,249.35 | | Net Profit | -40,452,921.53 | -34,572,559.33 | - 2025 semi-annual parent company operating revenue was RMB 845.08 million, with a net loss of RMB 40.45 million[116][117] - Parent company net loss widened compared to a loss of RMB 34.57 million in the prior year[117] Consolidated Cash Flow Statement In the first half of 2025, consolidated net cash flow from operating activities was RMB 85.66 million, a 61.00% decrease year-on-year; net cash flow from investing activities was -RMB 1.35 billion, and from financing activities was -RMB 97.67 million Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 85,662,276.00 | 219,653,246.64 | | Net Cash Flow from Investing Activities | -1,349,718,329.81 | -1,124,725,458.60 | | Net Cash Flow from Financing Activities | -97,668,619.82 | -83,821,449.90 | | Net Increase in Cash and Cash Equivalents | -1,361,724,673.63 | -988,893,661.86 | - Net cash flow from operating activities was RMB 85.66 million, a 61.00% decrease year-on-year[23][53][121] - Net cash flow from investing activities was -RMB 1.35 billion, and from financing activities was -RMB 97.67 million[53][121] Parent Company Cash Flow Statement In the first half of 2025, parent company net cash flow from operating activities was RMB 156.13 million, a decrease year-on-year; net cash flow from investing activities was -RMB 1.44 billion, and from financing activities was -RMB 43.40 million Parent Company Cash Flow Statement Key Data (Jan-Jun 2025) | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 156,128,491.31 | 306,110,925.33 | | Net Cash Flow from Investing Activities | -1,437,646,874.35 | -1,057,686,960.88 | | Net Cash Flow from Financing Activities | -43,398,837.02 | -41,070,679.47 | | Net Increase in Cash and Cash Equivalents | -1,324,917,220.06 | -792,646,715.02 | - Parent company net cash flow from operating activities was RMB 156.13 million, a decrease from RMB 306.11 million in the prior year[123] - Parent company net cash flow from investing activities was -RMB 1.44 billion, and from financing activities was -RMB 43.40 million[123][124] Consolidated Statement of Changes in Owners' Equity In the first half of 2025, consolidated total owners' equity decreased by RMB 47.27 million, primarily due to net loss and profit distribution - Current period comprehensive income attributable to parent company owners was -RMB 9.69 million[126] - Current period distribution to owners (or shareholders) was -RMB 37.58 million[126] - Period-end total owners' equity attributable to parent company was RMB 12.66 billion[127] Parent Company Statement of Changes in Owners' Equity In the first half of 2025, parent company total owners' equity decreased by RMB 78.03 million, primarily due to net loss and profit distribution - Current period comprehensive income totaled -RMB 40.45 million[131] - Current period distribution to owners (or shareholders) was -RMB 37.58 million[131] - Period-end total owners' equity was RMB 12.48 billion[131] Company Basic Information Established in 1999 and listed in 2001, the company has a total share capital of RMB 1.39 billion; its controlling shareholder changed to China Broadcasting Network Co., Ltd. in 2020, and it primarily manages Beijing's cable broadcasting network and related information services - Beijing Gehua CATV Network Co., Ltd. was established on September 29, 1999, and publicly issued A-shares for listing on January 4, 2001[133] - The company's total share capital is RMB 1.39 billion[137] - On December 21, 2020, the company's controlling shareholder changed from Beijing Beiguang Media Investment Development Center to China Broadcasting Network Co., Ltd[138] - The company is primarily responsible for the construction, management, and operation of Beijing's cable broadcasting network, and engages in broadcasting and television program reception and transmission, video-on-demand, and network information services[138] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant CSRC regulations, on a going concern basis - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises—Basic Standards, specific accounting standards, application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[140] - These financial statements are prepared on a going concern basis[142] Significant Accounting Policies and Accounting Estimates This section details the company's adherence to accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, financial instruments, receivables, inventory, contract assets, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, long-term asset impairment, long-term deferred expenses, contract liabilities, employee compensation, provisions, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company adheres to Accounting Standards for Business Enterprises, accurately reflecting its financial position, operating results, and cash flows[144] - The company's accounting year is from January 1 to December 31, its operating cycle is 12 months, and it adopts RMB as its functional currency[145][146][147] - The company classifies financial assets at initial recognition as: financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss[159] - The company recognizes revenue when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services[218] Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, and property tax; it enjoys various tax incentives, such as VAT exemption for basic cable digital TV subscription fees and a 15% corporate income tax rate for some high-tech subsidiaries Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Based on sales of goods and taxable services calculated according to tax laws, after deducting deductible input VAT for the current period, the difference is the VAT payable | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Calculated based on actual VAT and consumption tax paid | 7% | | Corporate Income Tax | Calculated based on taxable income | 15%, 25% | | Property Tax | Calculated based on the appreciated value from real estate transfer and prescribed tax rates | 1.2%, 12% | - As a transformed cultural enterprise in Beijing, the company is exempt from corporate income tax from January 1, 2024, to December 31, 2027[246] - Basic cable digital TV subscription fees and rural cable TV basic subscription fees collected by broadcasting and television operating service enterprises are exempt from VAT, effective until December 31, 2027[246] - Subsidiaries Beijing Gehua CATV Digital Media Co., Ltd. and Beijing Gehua CATV Engineering Management Co., Ltd. have obtained high-tech enterprise certificates, and their corporate income tax is calculated at 15% of taxable income[246][247] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including assets, liabilities, owners' equity, and profit/loss, such as monetary funds, trading financial assets, receivables, inventory, construction in progress, long-term equity investments, operating revenue and costs, financial expenses, and investment income, with explanations for changes - Monetary funds balance at period-end was RMB 7.31 billion, a decrease from RMB 8.67 billion at period-beginning[250] - Trading financial assets balance at period-end was RMB 1.26 billion, primarily comprising bank structured deposits and income certificates[252] - Inventory book value at period-end was RMB 255.95 million, a 79.99% increase from RMB 142.21 million at period-beginning, mainly due to increased contract performance expenditures[56][289] - Construction in progress book value at period-end was RMB 269.69 million, a decrease from RMB 531.54 million at period-beginning, mainly due to subsidiary projects being transferred to fixed assets[56][316][318] - Financial expenses for the current period were -RMB 27.75 million, a significant decrease from -RMB 95.34 million in the prior period, mainly due to significant interest income in the prior year from early settlement of some bank deposits[52][396] - Investment income for the current period was RMB 9.03 million, compared to -RMB 22.16 million in the prior period, achieving a turnaround, mainly due to increased investment income from long-term equity investments accounted for using the equity method[398] R&D Expenses Total R&D expenditure for the reporting period was RMB 31.79 million, with RMB 31.70 million expensed and RMB 0.09 million capitalized; R&D investment decreased from the prior period R&D Expenses by Nature (Jan-Jun 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Personnel Costs | 12,234,736.51 | 39,071,519.15 | | Intangible Asset Amortization | 16,285,477.89 | 8,521,649.19 | | Depreciation and Long-term Deferred Expenses | 2,926,015.71 | 555,480.45 | | Technical Service Fees | 218,613.86 | - | | Business Expenses | 127,191.61 | 4,163,049.09 | | Total | 31,792,035.58 | 52,311,697.88 | | Of which: Expensed R&D Expenditure | 31,702,357.15 | 51,941,876.08 | | Capitalized R&D Expenditure | 89,678.43 | 369,821.80 | - Total R&D expenditure for the current period was RMB 31.79 million, with RMB 31.70 million expensed and RMB 0.09 million capitalized[429] - R&D expenses decreased from the prior period, mainly due to reduced R&D investment in the current period[54][429] Changes in Consolidation Scope No changes in consolidation scope occurred during the reporting period due to non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries leading to loss of control - No non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries leading to loss of control occurred during the reporting period[431][432] Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates; the company owns several wholly-owned or controlled subsidiaries and holds interests in associates such as Beijing Gehua Silk Road Golden Bridge Media Industry Investment Partnership Composition of the Enterprise Group The company owns several subsidiaries, including Beijing Gehua CATV Engineering Management Co., Ltd., Beijing Gehua CATV Digital Media Co., Ltd., Zhuozhou Gehua CATV Network Co., Ltd., Beijing Gehua Yi Network Technology Development Co., Ltd., and Gehua CATV Investment Management Co., Ltd Composition of the Enterprise Group | Subsidiary Name | Main Operating Location | Registered Capital (RMB million) | Business Nature | Shareholding Ratio (%) (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Gehua CATV Engineering Management Co., Ltd. | Beijing | 100.00 | Engineering Construction | 90.00 | Establishment | | Beijing Gehua CATV Digital Media Co., Ltd. | Beijing | 40.00 | Equipment Sales, Technology Development | 95.00 | Establishment | | Zhuozhou Gehua CATV Network Co., Ltd. | Zhuozhou | 35.53 | Broadcasting and Television Network Services | 98.34 | Non-same-control business combination | | Beijing Gehua Yi Network Technology Development Co., Ltd. | Beijing | 88.00 | Technology Development Services | 100.00 | Establishment | | Gehua CATV Investment Management Co., Ltd. | Beijing | 400.00 | Investment Management, Asset Management | 100.00 | Establishment | - The company owns subsidiaries such as Beijing Gehua CATV Engineering Management Co., Ltd. and Beijing Gehua CATV Digital Media Co., Ltd[432] Key Financial Information of Significant Associates Significant associate Beijing Gehua Silk Road Golden Bridge Media Industry Investment Partnership (Limited Partnership) had total assets of RMB 946.58 million and equity attributable to parent company shareholders of RMB 944.16 million at period-end, achieving a net profit of RMB 18.71 million in the current period Key Financial Information of Significant Associates (Beijing Gehua Silk Road Golden Bridge Media Industry Investment Partnership (Limited Partnership), June 30, 2025) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 946,583,794.52 | 927,865,801.88 | | Total Liabilities | 2,423,585.52 | 2,412,020.48 | | Equity Attributable to Parent Company Shareholders | 944,160,209.00 | 925,453,781.40 | | Net Profit | 18,706,427.60 | -13,080,230.18 | | Total Comprehensive Income | 18,706,427.60 | -13,080,230.18 | - Beijing Gehua Silk Road Golden Bridge Media Industry Investment Partnership (Limited Partnership) had total assets of RMB 946.58 million and equity attributable to parent company shareholders of RMB 944.16 million at period-end[434][436] - This associate achieved a net profit of RMB 18.71 million in the current period, turning around from a loss of RMB 13.08 million in the prior period[436] Summary Financial Information of Insignificant Joint Ventures and Associates Insignificant joint ventures had a total investment book value of RMB 31.41 million and a net profit of RMB 2.37 million in the current period; insignificant associates had a total investment book value of RMB 486.15 million and a net profit of RMB 0.54 million in t