大晟文化(600892) - 2021 Q2 - 季度财报

Financial Performance - The company's operating revenue for the first half of 2021 was ¥111,230,543.07, a decrease of 47.29% compared to ¥211,038,685.35 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 was ¥7,986,527.26, down 77.16% from ¥34,973,722.16 in the previous year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥3,509,942.87, a decline of 89.33% compared to ¥32,883,693.89 in the same period last year[20]. - The net cash flow from operating activities was -¥24,527,760.97, worsening from -¥6,541,421.76 in the previous year[20]. - Basic earnings per share for the first half of 2021 were ¥0.01, down 83.33% from ¥0.06 in the same period last year[21]. - The weighted average return on net assets decreased by 10.02 percentage points to 2.94% from 12.96% in the previous year[21]. - The company reported a total non-recurring profit and loss of 4,476,584.39, with significant contributions from government subsidies amounting to 1,962,427.56 and a reversal of impairment provisions for receivables totaling 1,620,000.00[22]. - The company reported a net loss of CNY 1,419,616,791.28 in retained earnings, a slight improvement from a loss of CNY 1,427,471,233.93 at the end of 2020[89]. - The company's net profit for the first half of 2021 was CNY 10,428,006.64, a decrease of 73.5% compared to CNY 39,310,674.33 in the same period of 2020[95]. - The company reported a significant lawsuit where the defendants are required to pay performance compensation of approximately RMB 83 million and additional penalties[68]. Assets and Liabilities - The total assets at the end of the reporting period were ¥557,881,683.09, a decrease of 3.95% from ¥580,794,339.89 at the end of the previous year[20]. - The total liabilities of the company were CNY 255,214,435.59, compared to CNY 280,046,225.16 at the end of 2020, representing a reduction of approximately 8.8%[89]. - The company's cash and cash equivalents stood at CNY 81,484,824.09, down from CNY 130,300,654.83 at the end of 2020, marking a decline of about 37.4%[87]. - The company's total equity increased slightly to CNY 302,667,247.50 from CNY 300,748,114.73 at the end of 2020, reflecting a growth of approximately 0.7%[89]. - The company's total assets amounted to CNY 661,770,248.32 as of June 30, 2021, compared to CNY 638,971,961.24 at the end of 2020, reflecting an increase of 3.9%[92]. - The total liabilities were CNY 104,313,976.94 as of June 30, 2021, an increase from CNY 98,182,697.66 at the end of 2020, marking a rise of 6.5%[92]. Operational Highlights - The main business focuses on the development and operation of online games and the production and distribution of films and television series[24]. - The gaming market is experiencing increased competition, with a notable decline in user growth and tightening regulations impacting the industry[26]. - The company has launched two new games in the first half of 2021, with three additional games currently in development, expected to launch in the second half of 2021[30]. - The company’s subsidiary, Qiyao Interactive Entertainment, has successfully launched the Vietnamese version of the game "Magic World War" on July 3, 2021[32]. - The film and television industry is undergoing an adjustment period, with the company reducing investments and focusing on the distribution of existing projects to recover costs[27]. - The company is actively promoting the release of the web drama "Journey to the West: Daughter Country" and is in communication for the second round of distribution for "Fox's Summer"[33]. Management and Governance - The company emphasizes its strong management team with extensive experience from leading gaming companies, which enhances its operational efficiency and market position[28]. - The company has not proposed any profit distribution or capital reserve transfer plans for the half-year period[58]. - The company has guaranteed the independence of its personnel, assets, finances, and operations since October 8, 2014, ensuring no conflicts of interest with minority shareholders[62]. - The company has engaged Rongcheng Accounting Firm for the audit of its 2021 financial statements and internal controls, continuing from the previous year[65]. - The management team remains unchanged, with Huang Ping as the company leader and Fei Haijiang overseeing accounting[123]. Risks and Challenges - The company faces significant risks from intensified industry competition in both the film and gaming sectors, which could impact future performance[51]. - The company acknowledges the risk of product development in the gaming industry, where failure to meet market expectations could negatively affect revenue[53]. - There is a risk of goodwill impairment if the operational performance of subsidiaries like Taole Network and Qiyao Interactive deteriorates[54]. - The company is subject to policy risks that could affect its operations in the film, gaming, and equity investment sectors[55]. - The overall financial health shows signs of recovery, but the company still faces challenges in achieving profitability[116]. Financial Strategy and Capital Management - The company continues to focus on internal capital management and has not indicated any changes in its financial strategy[115]. - The company completed a non-public offering of 76,741,047 shares at a price of RMB 20.05 per share, raising a total of RMB 1,510,581,251.30 after expenses, increasing total share capital to 139,866,047 shares[127]. - The company executed a capital reserve conversion, increasing total share capital from 139,866,047 shares to 559,464,188 shares by issuing 419,598,141 additional shares[129]. - The company has maintained a consistent capital stock of 559,464,188 throughout the reporting periods[113]. Accounting and Financial Reporting - The company’s financial statements comply with the requirements of the enterprise accounting standards, reflecting its financial position and operating results accurately[135]. - The company applies fair value measurement for identifiable assets and liabilities acquired in business combinations under non-common control, recognizing goodwill when the acquisition cost exceeds the fair value of net identifiable assets[140]. - Financial instruments are assessed for impairment based on expected credit losses, ensuring accurate recognition of potential losses[176]. - The company recognizes expected credit losses for financial assets measured at amortized cost and other specified financial instruments[176]. - Financial assets are derecognized when the contractual rights to cash flows expire or are transferred, and the transfer meets derecognition criteria[162].