Company Overview - Linmon Media Limited produced and distributed a total of 19 high-quality drama series, with 17 being original series where the company acted as the lead/sole investor and executive producer[10]. - The company ranked fourth among all Chinese drama series companies in terms of revenue in 2021, according to Frost & Sullivan[12]. - Linmon Media has a strong reserve of original IPs, positioning itself as a top brand in the industry[12]. - The company aims to reinforce its leadership in the industry through diversified growth strategies[13]. Content Production and Performance - From 2019 to 2021, 75.0% of the original drama series broadcast by Linmon Media were high viewership series, accumulating over 16.3 billion view counts on online platforms during their first-run broadcast[11]. - The annual viewership rate of high viewership drama series on TV channels exceeded 1.0% during the same period[11]. - The original drama series "Beyond" achieved a highest viewership rate of 3.52%, covering over 200 million viewers[28]. - The original drama series "Under the Skin" ranked first in terms of accumulated effective view counts per episode every 30 days on major platforms[28]. - The Company launched new original drama series "Nobody Knows" and "Twenty Your Life On II" in August 2022, both achieving great broadcast effects[28]. Financial Performance - Revenue for the six months ended June 30, 2022, amounted to approximately RMB480.2 million, representing a decrease of 15.1% from approximately RMB565.4 million for the same period in 2021[22]. - Gross profit for the same period was approximately RMB189.1 million, a decrease of 36.8% from approximately RMB299.2 million in 2021[22]. - Net loss for the six months ended June 30, 2022, was approximately RMB65.2 million, a decrease of 178.1% from net profit of approximately RMB83.5 million in 2021[22]. - Adjusted net profit for the same period was approximately RMB105.2 million, representing a decrease of 44.2% from approximately RMB188.6 million in 2021[22]. - Revenue from the broadcasting of original drama series amounted to RMB460 million, representing a year-on-year increase of 7.1%, accounting for 96.5% of total revenue[25]. Revenue Breakdown - Revenue from broadcasting rights of original drama series increased by 7.1% from RMB 432.7 million in the first half of 2021 to RMB 463.3 million in the first half of 2022[57][59]. - Revenue from content marketing decreased by 70.5% from RMB 53.9 million in the first half of 2021 to RMB 15.9 million in the first half of 2022[60][61]. - Revenue from other businesses decreased by 98.7% from RMB 78.8 million in the first half of 2021 to RMB 1.0 million in the first half of 2022[62]. Operational Strategies - Linmon Media is exploring new growth avenues such as content marketing, derivative licensing, and overseas distribution to maximize the commercial value of its proprietary IP rights[13]. - The Company has deepened IP placement in consumption scenarios and has established cooperation for 4 external drama series[32]. - The Company is actively expanding its overseas business by partnering with major international media platforms such as Disney+, HBO Max, and Netflix[34]. - The Company aims to enhance its IP operating and management capacity and seeks to create collections of original drama series to build the "Linmon Universe" brand[41]. Employee and Corporate Governance - As of June 30, 2022, the group had 170 employees, primarily based in Shanghai, Beijing, and Hangzhou[51][54]. - The company maintains high recruitment standards and continuously refines its remuneration and incentive policies to motivate business development[52][54]. - The roles of chairman and president are currently performed by the same individual, Mr. Su Xiao, which deviates from code provision C.2.1 of the Corporate Governance Code[108]. - The Board believes that the current structure does not impair the balance of power and authority within the Company[111]. Shareholder Information - As of the interim report date, Mr. Su Xiao holds a 44.33% shareholding interest in the company, amounting to 159,782,040 shares[126]. - Ms. Chen Fei, Ms. Xu Xiao'ou, and Mr. Zhou Yuan also hold a 44.33% shareholding interest each, with the same number of shares[126]. - The interests stated in the report are all long positions, indicating a positive outlook on the company's performance[127]. Cash Flow and Financial Position - Cash generated from operations for the first half of 2022 was RMB 320,829,000, an increase from RMB 302,612,000 in the prior year[157]. - Total cash and cash equivalents at the end of the period reached RMB 1,192,772,000, up from RMB 422,650,000 at the end of the same period in 2021[158]. - The company reported a net cash inflow from investing activities of RMB 120,833,000, compared to RMB 94,039,000 in the previous year[157]. - The Group has available bank facilities totaling RMB 1,992,500,000 that can be utilized in the next twelve months, ensuring sufficient financial resources for ongoing operations[163]. Taxation and Dividends - The statutory corporate income tax rate for certain PRC subsidiaries is 25%, with no Hong Kong profits tax provided due to no assessable profit arising in Hong Kong during the reporting period[185]. - For the six months ended June 30, 2022, the total tax charge for the period was RMB 23,923,000, a decrease from RMB 29,919,000 in the same period of 2021, representing a reduction of approximately 20.4%[187]. - No interim dividend has been paid or declared for the six months ended June 30, 2022, consistent with the same period in 2021[188].
柠萌影视(09857) - 2022 - 中期财报