博瑞传播(600880) - 2021 Q2 - 季度财报

Definitions Company Profile and Key Financial Indicators Company Basic Information This chapter outlines the fundamental corporate details of Chengdu Bory Communications Co., Ltd., such as its name, stock code, and legal representative Company Basic Information | Item | Information | | :--- | :--- | | Chinese Name | Chengdu Bory Communications Co., Ltd. | | Chinese Abbreviation | Bory Communications | | Stock Code | 600880 | | Legal Representative | Mu Tao | Key Financial Data and Indicators The company reported 292 million yuan in operating revenue, a 69.69% increase, and 35.05 million yuan in net profit attributable to shareholders, up 15.47%, with operating cash flow at -124 million yuan Key Accounting Data for H1 2021 (Unit: Yuan) | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 291,621,709.63 | 171,853,248.09 | 69.69 | | Net Profit Attributable to Shareholders | 35,049,265.01 | 30,354,663.07 | 15.47 | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 32,535,676.16 | 33,093,182.57 | -1.68 | | Net Cash Flow from Operating Activities | -123,679,821.38 | -48,313,368.44 | -156.00 | | Asset Data | End of Current Period | End of Prior Year | Period-end vs. Prior Year-end Change (%) | | Net Assets Attributable to Shareholders | 2,940,172,189.89 | 2,929,148,479.82 | 0.38 | | Total Assets | 3,559,546,680.82 | 3,553,964,126.36 | 0.16 | Key Financial Indicators for H1 2021 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.03 | 0.03 | 0.00% | | Weighted Average ROE (%) | 1.19 | 1.05 | Increased by 0.14 percentage points | | Weighted Average ROE (Excl. Non-recurring Items) (%) | 1.11 | 1.15 | Decreased by 0.04 percentage points | - During the reporting period, the company's total non-recurring gains and losses amounted to 2.51 million yuan, primarily from government subsidies[19] Management Discussion and Analysis Industry and Main Business Operations The company's main businesses include education, gaming, outdoor advertising, and micro-lending, each navigating distinct policy and market environments, from tightening K12 education regulations to digital transformation in advertising - The company's main businesses include education, gaming, outdoor advertising, property leasing, and micro-lending services[21] - Education industry: Policies for private K12 education are tightening, with stricter regulation in compulsory education, while smart education is policy-driven with broad development prospects[21] - Gaming industry: Market potential remains strong, with sub-segments like ACG, overseas expansion, and IP adaptation becoming new growth drivers, though game license approvals remain restricted[22] Analysis of Core Competencies The company's core competencies stem from favorable regional development and policy support in Chengdu, a mature corporate governance system with an experienced management team, and robust financial health with ample capital and low debt - Regional and Policy Advantages: As a state-owned cultural media listed company in Chengdu, the company benefits from Chengdu's urban development strategy to build 'Three Cities and Three Capitals'[25] - Governance and Management Advantages: The company has established a mature and standardized governance system, with mature operating mechanisms and an experienced management team[26] - Financial Advantages: The company maintains robust financial health with ample capital, low debt, and good credit ratings, laying a solid foundation for future development[27] Discussion and Analysis of Operations In H1 2021, the company achieved 318 million yuan in total operating revenue, up 61.65%, and 35.05 million yuan in net profit attributable to shareholders, up 15.47%, driven by strategic adjustments across its diverse business segments and proactive external investments Overall Operating Performance for H1 2021 | Indicator | Amount (Yuan) | YoY Growth (%) | | :--- | :--- | :--- | | Total Operating Revenue | 317,542,400 | 61.65% | | Net Profit Attributable to Shareholders | 35,049,300 | 15.47% | Main Business Operations During the reporting period, all main business segments showed progress, with the gaming sector reducing losses, education and training revenue increasing, smart education securing significant new contracts, and positive growth in advertising, micro-lending, and property leasing Operating Performance of Business Segments (H1 2021) | Business Segment | Operating Revenue (Yuan) | Net Profit (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Gaming Business | 41,673,600 | -6,557,900 | Loss reduced by 2,174,000 yuan | | School Education and Training | 66,133,900 | 16,098,400 | Revenue increased by 9,516,700 yuan, net profit increased by 1,488,700 yuan | | Shengxue Education (Smart Education) | 90,420,900 | 6,760,400 | New contract value of 169,000,000 yuan, YoY increase of 152.24% | | Advertising Business (Bory Horizon) | 65,680,700 | 5,966,600 | Revenue increased by 15,875,100 yuan, net profit increased by 1,448,300 yuan | | Micro-lending Business | 25,920,700 | 12,729,100 | Net profit decreased by 8,600,000 yuan YoY (due to reversal of impairment loss in prior period) | | Property Leasing | 25,888,300 | 6,655,900 | Revenue increased by 4,859,800 yuan, net profit increased by 2,437,000 yuan | Key Initiatives Progress During the reporting period, the company actively advanced key initiatives to foster cultural and creative economic development, including restructuring Chengdu Cultural Exchange, investing in the Locke Park project, and subscribing to New Caihuazhang and Ganbei fund shares - Completed the reorganization and transformation of Chengdu Cultural Exchange and signed capital increase agreements, actively pursuing business collaborations[35] - Invested in the Locke Park project through the Bory Libao Fund, exploring a new integrated sports venue development model combining sports and entertainment experiences[37] - Subscribed to New Caihuazhang Fund shares with 100 million yuan and Ganbei Fund shares with 50 million yuan of self-owned capital, aiming to strategically position in the cultural industry and cultivate new profit growth points[38] Financial Analysis of Key Operating Performance This chapter provides an in-depth analysis of the company's H1 2021 operating performance, covering financial statement item changes, non-core business impacts, asset and liability status, investment activities, subsidiary analysis, and potential risks Main Business Analysis During the reporting period, operating revenue and costs increased by 69.69% and 83.85% respectively, driven by the acquisition of Shengxue Education and growth in advertising, gaming, and education, while operating cash flow decreased by 156.00% due to increased micro-lending and investment payments Analysis of Major Financial Statement Item Changes (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 291,621,709.63 | 171,853,248.09 | 69.69 | Change in consolidation scope and increase in revenue from multiple businesses | | Operating Cost | 197,233,634.15 | 107,282,390.68 | 83.85 | Costs increased proportionally with revenue | | Selling Expenses | 17,747,108.00 | 8,880,674.89 | 99.84 | Change in consolidation scope and increase in game promotion expenses | | Net Cash Flow from Operating Activities | -123,679,821.38 | -48,313,368.44 | -156.00 | Increase in net loans and advances to customers by Bory Micro-lending | | Net Cash Flow from Investing Activities | -72,130,048.04 | -8,114,136.93 | -788.94 | Increase in cash paid for investments | | Net Cash Flow from Financing Activities | 88,852,740.43 | 6,214,365.04 | 1,329.80 | Shengxue Education obtained borrowings and absorbed minority shareholder investments | Analysis of Assets and Liabilities As of the reporting period end, total assets were 3.56 billion yuan, a slight 0.16% increase, driven by a 229.45% rise in other non-current financial assets from new investments, while short-term borrowings surged 451.85% due to subsidiary loans Changes in Major Balance Sheet Items (Unit: Yuan) | Item Name | Current Period End Balance | Prior Year End Balance | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Other Non-current Financial Assets | 100,220,700.00 | 30,421,000.00 | 229.45 | New investments in companies such as Shanghai Bilibili E-sports. | | Short-term Borrowings | 48,364,000.00 | 8,764,000.00 | 451.85 | Increase in short-term borrowings by subsidiaries Shengxue Education and Caizi Software. | | Employee Remuneration Payable | 14,749,768.64 | 40,937,469.73 | -63.97 | Year-end bonuses accrued at the end of the prior year have been paid. | Analysis of Investment Status During the reporting period, the company's total external equity investment significantly increased to 70 million yuan, primarily comprising a 50 million yuan investment in Shanghai Bilibili E-sports Information Technology Co., Ltd., for a 6.02% stake Major External Equity Investments in H1 2021 | Investee Company | Main Business | Investment Amount During Reporting Period (Yuan) | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | Shanghai Bilibili E-sports Information Technology Co., Ltd. | Information Technology, Sports Competition Organization | 50,000,000 | 6.02 | Analysis of Major Holding and Associate Companies During the reporting period, major subsidiaries showed varied performance, with Bory Horizon, Bory Education, Media Property, Bory Micro-lending, and Shengxue Education all profitable, while gaming subsidiaries Dream Factory and Manyougu remained at a loss, albeit with reduced deficits Operating Performance of Major Holding and Associate Companies in H1 2021 (Unit: Yuan) | Company Name | Business Type | Operating Revenue/Total Revenue | Net Profit | | :--- | :--- | :--- | :--- | | Chengdu Dream Factory Network Information Co., Ltd. | Online Gaming | 9,308,437.82 | -2,607,815.18 | | Beijing Manyougu Information Technology Co., Ltd. | Online Gaming | 32,365,135.35 | -3,950,082.33 | | Sichuan Bory Horizon Outdoor Media Co., Ltd. | Advertising | 65,680,710.80 | 5,966,606.26 | | Sichuan Bory Education Co., Ltd. | Education | 66,133,887.87 | 16,098,365.44 | | Sichuan Bory Media Property Co., Ltd. | Property Leasing | 25,888,333.82 | 6,655,874.43 | | Chengdu Bory Micro-lending Co., Ltd. | Micro-lending | 25,920,685.47 | 12,729,114.84 | | Sichuan Shengxue Education Technology Co., Ltd. | Smart Education | 90,420,915.75 | 6,760,425.66 | Potential Risks The company faces multiple risks, including potential goodwill impairment of 223 million yuan in the gaming segment, Shengxue Education's inability to meet profit commitments, overall transformation falling short of expectations, and regulatory uncertainties in the education sector impacting future growth or requiring business restructuring - The gaming segment faces a 223 million yuan goodwill impairment risk, potentially leading to impairment if operating performance falls short of expectations[60] - Subsidiary Shengxue Education faces the risk of not fulfilling its performance commitments for 2020-2023[60] - The company is in a critical period of transformation and upgrading; if new stable profit growth points are not found, there is a risk of transformation falling short of expectations[60] - Tightening education regulatory policies, such as the Private Education Promotion Law implementation rules, may limit the future growth of the company's education segment or even lead to the risk of private-to-public conversion[61] Corporate Governance Changes in Directors, Supervisors, and Senior Management During the reporting period, the company experienced changes in its directors, supervisors, and senior management, including the passing of independent director Mr. Zhang Jinsong, the departure of Vice General Manager and CFO Mr. Ye Tao, and the election of Mr. Shen Dingding as a non-independent director Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change | | :--- | :--- | :--- | | Zhang Jinsong | Independent Director | Resigned | | Ye Tao | Vice General Manager and CFO | Resigned | | Shen Dingding | Director | Elected | Environmental and Social Responsibility Environmental Information The company and its major subsidiaries are not classified as key pollutant-discharging entities by environmental protection authorities, with no significant environmental information requiring disclosure during the reporting period - Neither the company nor its major subsidiaries are classified as key pollutant-discharging entities[70] Significant Matters Fulfillment of Commitments During the reporting period, the company's actual controller, Chengdu Media Group, and other related parties strictly fulfilled their commitments regarding resolving horizontal competition and regulating related-party transactions - Controlling shareholder Chengdu Media Group committed to avoiding new horizontal competition with the listed company and prioritizing business opportunities for the listed company[72] - The controlling shareholder committed to conducting necessary related-party transactions based on market fairness principles, minimizing related-party transactions with the listed company, and not occupying the listed company's funds[72][73] Significant Related-Party Transactions During the reporting period, the company engaged in routine related-party transactions, including 12.54 million yuan in purchases/services and 7.01 million yuan in sales/services, while its subsidiary Shengxue Education received 40 million yuan in loans from its second and third largest shareholders - Routine Related-Party Transactions: During the reporting period, the company's total purchases of goods/acceptance of services amounted to 12,543,014.98 yuan, and sales of goods/provision of services totaled 7,011,557.26 yuan[77] - Related-Party Borrowings: Holding subsidiary Shengxue Education received a total of 40 million yuan in borrowings from its second largest shareholder Chen Changzhi and third largest shareholder Tianjin Shengxue to alleviate operating capital pressure[79] Significant Guarantees During the reporting period, the company provided a joint and several liability guarantee for a 40 million yuan credit line granted by Chengdu Bank to its holding subsidiary Shengxue Education, representing 1.36% of the company's net assets as of the period end Company's Total Guarantee Status | Item | Amount (Yuan) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During Reporting Period | 40,000,000 | | Total Outstanding Guarantees to Subsidiaries at Period End (B) | 40,000,000 | | Total Guarantee Amount (A+B) | 40,000,000 | | Ratio of Total Guarantee Amount to Company's Net Assets (%) | 1.36 | Share Changes and Shareholder Information Share Capital Changes During the reporting period, the company's total share capital and structure remained unchanged; post-period, controlling shareholder Chengdu Media Group initiated a plan to increase its stake by 0.5% to 2% of total share capital - During the reporting period, the company's total number of shares and share capital structure remained unchanged[88] - Controlling shareholder Chengdu Media Group plans to increase its stake in the company by no less than 0.5% and no more than 2% of the total share capital within 12 months starting from August 9, 2021[89] Shareholder Information As of the reporting period end, the company had 51,612 common shareholders, with Chengdu Bory Investment Holding Group Co., Ltd. and Chengdu Media Group as the top two, holding a combined 34.93% as parties acting in concert Top Ten Shareholders' Shareholding Status | Shareholder Name | Shares Held at Period End (Shares) | Proportion (%) | | :--- | :--- | :--- | | Chengdu Bory Investment Holding Group Co., Ltd. | 255,519,676 | 23.37 | | Chengdu Media Group | 126,425,137 | 11.56 | | E Fund Management - Central Huijin Asset Management... | 16,853,900 | 1.54 | | Chen Changzhi | 9,356,600 | 0.86 | | Wu Bin | 7,729,830 | 0.71 | - Chengdu Media Group and Chengdu Bory Investment Holding Group Co., Ltd. are parties acting in concert, jointly holding 34.93% of the company's shares[94] Preferred Shares Information - During the reporting period, the company had no preferred shares information to disclose[98] Bonds Information - During the reporting period, the company had no information regarding corporate bonds, company bonds, or non-financial enterprise debt financing instruments[99] Financial Report Financial Statements This chapter presents the company's unaudited consolidated and parent company financial statements for H1 2021, including the balance sheet, income statement, cash flow statement, and statement of changes in equity - This semi-annual report is unaudited[7][101] Consolidated Balance Sheet As of June 30, 2021, the company's total assets were 3.56 billion yuan, a 0.16% increase, with equity attributable to the parent company at 2.94 billion yuan, up 0.38%, and total liabilities at 495 million yuan, resulting in a 13.9% asset-liability ratio Consolidated Balance Sheet Summary (June 30, 2021) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 3,559,546,680.82 | | Total Current Assets | 1,027,652,770.39 | | Total Non-current Assets | 2,531,893,910.43 | | Total Liabilities | 494,785,592.01 | | Total Current Liabilities | 392,311,707.13 | | Total Non-current Liabilities | 102,473,884.88 | | Total Owners' Equity | 3,064,761,088.81 | | Total Owners' Equity Attributable to Parent Company | 2,940,172,189.89 | | Minority Interests | 124,588,898.92 | Consolidated Income Statement In H1 2021, the company achieved 318 million yuan in total operating revenue, a 61.65% increase, with total operating costs of 273 million yuan, resulting in a total profit of 53.69 million yuan and net profit attributable to parent company shareholders of 35.05 million yuan, up 15.47% Consolidated Income Statement Summary (Jan-Jun 2021) | Item | Amount (Yuan) | | :--- | :--- | | I. Total Operating Revenue | 317,542,395.10 | | II. Total Operating Costs | 273,016,788.66 | | III. Operating Profit | 53,626,544.43 | | IV. Total Profit | 53,690,356.27 | | V. Net Profit | 37,944,000.30 | | Net Profit Attributable to Parent Company Shareholders | 35,049,265.01 | | Minority Interest Income/Loss | 2,894,735.29 | | Basic Earnings Per Share (Yuan/share) | 0.03 | Consolidated Cash Flow Statement In H1 2021, net cash flow from operating activities was -124 million yuan, a significant decrease from -48 million yuan in the prior period, primarily due to increased customer loans; net cash flow from investing activities was -72 million yuan due to higher investment payments; and net cash flow from financing activities was 89 million yuan from borrowings and investments, with cash and equivalents at 678 million yuan at period end Consolidated Cash Flow Statement Summary (Jan-Jun 2021) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -123,679,821.38 | | Net Cash Flow from Investing Activities | -72,130,048.04 | | Net Cash Flow from Financing Activities | 88,852,740.43 | | Net Increase in Cash and Cash Equivalents | -106,957,128.99 | | Cash and Cash Equivalents at Period End | 677,680,286.74 | Notes to Consolidated Financial Statements This chapter provides detailed explanations and analyses of significant items in the consolidated financial statements, covering the composition, changes, and related risks of key accounts such as cash, accounts receivable, goodwill, operating revenue and costs, and investment income Goodwill As of the reporting period end, the company's goodwill had a gross book value of 1.323 billion yuan, impairment provisions of 902 million yuan, and a net book value of 421 million yuan, primarily from acquisitions in education and gaming, with significant impairment already recognized for gaming subsidiaries Composition of Goodwill Gross Book Value (Unit: Yuan) | Goodwill-Generating Event | Period-End Balance | | :--- | :--- | | Sichuan Bory Education Co., Ltd. | 16,022,994.64 | | Chengdu Dream Factory Network Information Co., Ltd. | 363,998,494.43 | | Beijing Manyougu Information Technology Co., Ltd. | 761,435,434.18 | | Sichuan Shengxue Education Technology Co., Ltd. | 181,562,394.20 | | Total | 1,323,019,317.45 | Goodwill Impairment Provisions (Unit: Yuan) | Goodwill-Generating Event | Period-End Balance | | :--- | :--- | | Chengdu Dream Factory Network Information Co., Ltd. | 315,579,833.58 | | Beijing Manyougu Information Technology Co., Ltd. | 586,704,722.96 | | Total | 902,284,556.54 | Operating Revenue and Operating Cost In H1 2021, the company's main business revenue reached 291 million yuan, up 69.69%, with costs at 197 million yuan, up 83.85%, primarily due to the acquisition of Shengxue Education and growth in advertising, gaming, and education, making smart education the largest revenue contributor at 90.42 million yuan Main Business by Industry (Unit: Yuan) | Industry Name | Operating Revenue | Operating Cost | | :--- | :--- | :--- | | Advertising Business | 68,213,414.30 | 61,186,245.76 | | Smart Education Business | 90,420,915.75 | 65,708,966.43 | | School Business | 66,103,037.39 | 39,415,414.60 | | Leasing and Property Management Business | 24,438,764.59 | 6,081,352.50 | | Online Gaming Business | 41,673,573.17 | 24,825,213.61 | | Total | 290,849,705.20 | 197,217,192.90 |