Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 651,797 thousand, a decrease of 53.3% compared to RMB 1,395,040 thousand for the same period in 2021[15]. - Gross profit for the same period was RMB 353,871 thousand, down 27.1% from RMB 485,880 thousand year-on-year[15]. - Operating profit for the six months ended June 30, 2022, was RMB 248,893 thousand, a significant recovery from an operating loss of RMB 2,397,992 thousand in the prior year[15]. - The company reported a net profit of RMB 146,567 thousand for the six months ended June 30, 2022, compared to a net loss of RMB 2,448,786 thousand in the same period last year[15]. - Basic earnings per share for the period was RMB 1.59, a recovery from a loss per share of RMB 26.87 in the previous year[16]. - The company recorded a foreign exchange loss of RMB 71,900 million for the six months ended June 30, 2022, compared to a loss of RMB 4,513 million in the same period of 2021, indicating a substantial increase in foreign exchange impact[70]. - The company reported a net other income of RMB 33,918 million for the six months ended June 30, 2022, compared to a net loss of RMB 2,558,283 million in the same period of 2021, indicating a substantial turnaround[79]. Assets and Liabilities - The total assets of China Ruyi Holdings Limited increased to RMB 11,349,906 thousand as of June 30, 2022, compared to RMB 10,619,892 thousand as of December 31, 2021, representing a growth of approximately 6.9%[13]. - The total liabilities increased to RMB 5,363,606 thousand as of June 30, 2022, compared to RMB 5,000,476 thousand at the end of 2021, reflecting a rise of 7.3%[14]. - The company's cash and cash equivalents decreased significantly to RMB 456,772 thousand from RMB 1,139,463 thousand, indicating a decline of approximately 59.9%[13]. - The trade receivables rose to RMB 2,396,111 thousand from RMB 1,300,529 thousand, marking an increase of around 84.7%[13]. - The company's total equity increased to RMB 7,998,844,000 as of June 30, 2022, from RMB 7,752,893,000 as of December 31, 2021, reflecting a growth of 3.2%[65]. - The total borrowings as of June 30, 2022, amounted to RMB 1,593,079 million, an increase from RMB 1,523,018 million as of December 31, 2021, showing a growth of approximately 4.6%[72]. Investments and Assets Valuation - The company’s investment in film and television program rights increased to RMB 654,146 million as of June 30, 2022, compared to RMB 559,058 million as of December 31, 2021, reflecting an increase of approximately 17%[77]. - The total completed film and television program copyrights amounted to RMB 806,913,000 as of June 30, 2022, up from RMB 612,835,000 as of December 31, 2021[54]. - The company has not recognized any impairment for completed or in-progress film and television program copyrights as of June 30, 2022[29]. - The fair value of listed equity securities decreased to RMB 30,417,000 as of June 30, 2022, from RMB 44,846,000 as of December 31, 2021, reflecting a decline of 32.3%[61]. Share Capital and Financing - The company has issued 120,000,000 new ordinary shares, increasing the total issued share capital to 9,354,647,545 shares as of June 30, 2022[66]. - The company entered into a share subscription agreement with Water Lily Investment Limited to issue 64,000,000 new ordinary shares at HKD 2.50 per share, raising approximately HKD 300 million net[123]. - Another share subscription agreement was made with Mr. Liu for 56,000,000 new ordinary shares at the same price, contributing to the total net proceeds of HKD 300 million[123]. - The net proceeds from the share subscriptions are intended for general working capital and business development and expansion[124]. Operational Highlights - The company maintained a high production rate for film and television projects, with 7 films and 4 series commencing production in the first half of 2022 despite disruptions from the COVID-19 pandemic[103]. - The company is actively expanding its streaming content offerings, including games and IP monetization, to enhance user experience and service quality[104]. - The company launched two mobile games, "Chaos in the World" and "Legend of the World," which achieved significant revenue shortly after their release[104]. - The company is committed to diversifying its business across film production, streaming platform operations, and game development to ensure robust growth[104]. Risk Management - The company faces various financial risks, including market risk, credit risk, and liquidity risk, with no changes to risk management policies since December 31, 2021[31]. - The company faces significant risks related to fluctuations in the RMB exchange rate, as most of its assets and liabilities are denominated in RMB[122]. Corporate Governance - The company has established internal policies to ensure compliance with corporate governance standards, although there were deviations noted regarding the separation of roles between the chairman and CEO[151]. - The chairman was unable to attend the annual general meeting held on June 13, 2022, but the meeting was chaired by an independent non-executive director[151]. - The company confirms that all directors have complied with the standard code of conduct for securities trading during the six months ending June 30, 2022[152].
中国儒意(00136) - 2022 - 中期财报