2023-08-29 16:00Financial Performance - Revenue for the first half of the year reached 5,427,547,628.27 yuan, an increase of 8.99% compared to the same period last year[9] - Net profit attributable to shareholders of the listed company was 762,156,455.81 yuan, up 6.18% year-on-year[9] - Revenue increased by 8.99% to 5,427,547,628.27 RMB, driven by growth in education services, internet sales, and the acquisition of Liangshan Xinhua Bookstore[45][46] - Basic earnings per share for the first half of 2023 increased by 6.90% to RMB 0.62, while diluted earnings per share remained unchanged[134] - The company's general book publishing business achieved a revenue of RMB 453 million, a 13.63% increase year-on-year, with a gross margin of 24.63%, a decrease of 0.87 percentage points[148] - The textbook and teaching aid publishing business generated a revenue of RMB 630 million, a 9.25% increase year-on-year, with a gross margin of 39.01%, a decrease of 3.5 percentage points due to fluctuations in paper prices[149] - The company's textbook and teaching aid distribution business achieved a revenue of RMB 2.124 billion, a 13.49% increase year-on-year[149] - The company's logistics services revenue increased by 9.99% to RMB 171.67 million, with a gross margin increase of 3.45 percentage points[145] - Offline sales revenue increased by 8.69% to RMB 2.872 billion, with a gross margin increase of 0.49 percentage points[145] - Online sales revenue increased by 9.72% to RMB 2.481 billion, with a gross margin increase of 1.37 percentage points[145] - The company's general book distribution business achieved a main business revenue of 2.529 billion yuan, an increase of 8.47% compared to 2.331 billion yuan in the same period last year, mainly due to increased sales of student reading materials such as knowledge expansion and comprehensive practice[174] - The gross profit margin for the general book distribution business was 28.27%, an increase of 0.88 percentage points compared to 27.39% in the same period last year[174] - The company's education informatization and education equipment business achieved sales revenue of 72.32 million yuan, a decrease of 56.53% compared to the same period last year, mainly due to a significant decrease in local fiscal investment and smaller project scales[172] - The company's third-party logistics business achieved revenue of 120 million yuan in the first half of the year[175] - The company exported 274 copyrights and 2.15 million yuan worth of physical goods in the first half of the year[169] - The company launched 730 integrated publications and generated 5 million yuan in revenue from new business formats[169] - Asset impairment loss amounted to -40,814,578.89, a significant decrease compared to the previous period[178] - Disposal gains of assets were 267,758.40, a sharp decline of 99.34% year-over-year[178] - Other receivables increased by 75.04% to 227,153,733.07, mainly due to the declared cash dividends of 86 million from Chengdu Bank and Wanxin Media[182] - Other current assets rose by 55.49% to 514,785,696.64, driven by the transfer of time deposits due within one year[182] - Long-term receivables decreased by 39.25% to 61,013,498.25, as payments for educational informatization and equipment business were transferred to receivables[182] - Notes payable dropped by 83.21% to 5,000,000.00, due to reduced use of bills for settlement in printing materials supply and logistics businesses[182] - Other payables increased by 37.50% to 556,004,168.03, primarily due to the declared H-share cash dividends of 150 million[182] - Cash flow from operating activities improved significantly due to increased cash inflows from general book publishing and the acquisition of Liangshan Xinhua Bookstore[179] - Cash flow from investing activities was impacted by the absence of 86 million in cash dividends from Chengdu Bank and Wanxin Media, and the purchase of time deposits[179] Business Operations and Expansion - The company operates 186 retail stores in Sichuan Province, with new stores mainly from the acquisition of Liangshan Prefecture Xinhua Bookstore[13] - The company's education service network covers 152 branches in Sichuan Province, with new branches also from the Liangshan Prefecture Xinhua Bookstore acquisition[14] - The company's online platform serves 6,189 schools, 434,700 teachers, and 4.66 million students[23] - Labor and practical education business generated sales revenue of 71.81 million yuan, serving 259,500 students[23] - Teacher training business achieved sales revenue of 9.78 million yuan, serving 91,000 teachers[23] - The company's general book distribution business continues to grow, with a focus on online and offline integration[23] - The company's market share in the general book market ranked 11th among 37 publishing and media groups in China[22] - The company is actively revising national standard textbooks and developing new products to meet the "Double Reduction" policy requirements[22] - The company invested an additional 150 million yuan in Zhongjin Qichen Phase II during the first half of 2023[35] - The company's stock holdings increased from 1.87 billion yuan at the beginning of the period to 2.15 billion yuan at the end of the period, with a cumulative fair value change of 273.59 million yuan included in equity[44] - The company's private equity fund holdings decreased from 464.65 million yuan to 453.86 million yuan, with a fair value change loss of 4.64 million yuan during the period[44] - The company's investment in Chengdu Bank had an initial cost of 240 million yuan and a year-end book value of 976.8 million yuan, with a cumulative fair value change of -247.2 million yuan included in equity[44] - The company's investment in Wanxin Media had an initial cost of 186.42 million yuan and a year-end book value of 1.17 billion yuan, with a cumulative fair value change of 521 million yuan included in equity[44] - The company's total investment assets increased from 2.35 billion yuan at the beginning of the period to 2.61 billion yuan at the end of the period[44] - The company invested 120,000,000 RMB in Zhongjin Qichen Phase II, a new energy industry equity investment fund, holding a 9.88% stake[50][53] - Sichuan Education Press Co., Ltd., a subsidiary, reported revenue of 39,029.04 million RMB and net profit of 19,089.75 million RMB for the first half of 2023[55] - The company plans to enhance its original publishing and marketing capabilities to mitigate risks from market competition and changing consumer habits[56] - The company will further integrate publishing and distribution business with emerging technologies such as big data, cloud computing, AI, and blockchain, exploring new business models and opportunities[69] - The company's "Blockchain Publishing and Distribution Innovation Project - Digital Book Collection" was selected for the Sichuan Provincial Cultural Industry Development Project Library[169] - The company's 9 publishing houses were all ranked in the top 100 of the "2023 Chinese Book Overseas Library Collection Influence Research Report"[169] - The company's "Approaching Sanxingdui" was selected as one of the "China Good Books" of 2022[169] - The company's "My Family's 'Human World' Story" and other key theme books were launched in the first half of 2023[169] Expenses and Costs - The company's non-operating income and expenses amounted to -13.98 million yuan, with a total non-recurring profit and loss of -39.3 million yuan[31] - The company's management expenses increased due to the acquisition of Liangshan Xinhua Bookstore and increased human resource costs, depreciation, and property management expenses[38] - The company's R&D expenses increased due to investment in education informatization and amortization of self-developed software[38] - R&D expenses surged by 273.32% to 8,668,944.20 RMB, reflecting increased investment in innovation[45] - The acquisition of Liangshan Xinhua Bookstore contributed to increased sales expenses by 4.99%, reaching 660,590,684.41 RMB[45][46] - The company's total financial assets measured at fair value stood at 453,861,530.70 RMB, with a net loss of 4,637,313.55 RMB from fair value changes[53] - The company's fair value changes from financial assets amounted to RMB 32.18 million, which is not considered non-recurring profit or loss[137] Corporate Governance and Leadership Changes - The company's 2022 annual general meeting of shareholders was held on May 18, 2023, and resolutions were published on May 19, 2023, including the approval of the 2022 annual report and financial statements[70] - Luo Yong resigned as executive director, chairman, and chairman of the Strategy and Investment Committee due to age, effective August 29, 2023. Zhou Qing was appointed as the new executive director and chairman[73] - Tang Xiongxing resigned as supervisor and chairman of the Supervisory Committee due to work changes, effective August 29, 2023. Qiu Ming was appointed as the new supervisor and chairman[74][75] - The company did not propose any profit distribution or capital reserve conversion plan for the first half of 2023[76] Environmental and Social Responsibility - The company is committed to reducing environmental impact through energy-saving measures, facility upgrades, and the use of green materials in its printing operations[82] - The company actively participated in rural revitalization efforts in Sichuan Province, including poverty alleviation and infrastructure improvement projects[84] - Sichuan Xinhua Printing, a subsidiary, has implemented measures to reduce emissions and manage waste, achieving compliance with environmental standards and receiving a "Green Leading Enterprise" certification[95] - The company adheres to national environmental laws and regulations, promoting green operations and minimizing environmental impact[99] - The company organized the recycling of approximately 2,264.79 tons of books and periodicals during the reporting period[100] Financial Assets and Liabilities - The company's stock holdings increased from 1.87 billion yuan at the beginning of the period to 2.15 billion yuan at the end of the period, with a cumulative fair value change of 273.59 million yuan included in equity[44] - The company's private equity fund holdings decreased from 464.65 million yuan to 453.86 million yuan, with a fair value change loss of 4.64 million yuan during the period[44] - The company's investment in Chengdu Bank had an initial cost of 240 million yuan and a year-end book value of 976.8 million yuan, with a cumulative fair value change of -247.2 million yuan included in equity[44] - The company's investment in Wanxin Media had an initial cost of 186.42 million yuan and a year-end book value of 1.17 billion yuan, with a cumulative fair value change of 521 million yuan included in equity[44] - The company's total investment assets increased from 2.35 billion yuan at the beginning of the period to 2.61 billion yuan at the end of the period[44] - The company's total financial assets measured at fair value stood at 453,861,530.70 RMB, with a net loss of 4,637,313.55 RMB from fair value changes[53] - The company's financial assets are derecognized if the contractual rights to receive cash flows are terminated or if the risks and rewards are transferred to another party[194] - The company's financial liabilities are classified as other financial liabilities, including short-term borrowings, notes payable, and accounts payable[196] - The company's inventory is initially measured at cost, which includes purchase cost, processing cost, and other expenses to bring the inventory to its present location and condition[200] - The company does not recognize changes in the fair value of equity instruments and deducts transaction costs related to equity transactions from equity[198] - The company's financial liabilities are derecognized when the present obligation is discharged or replaced with a new financial liability with substantially different terms[197] - The company's financial assets are measured at fair value, with related liabilities adjusted for retained rights and obligations[195] - The company's expected credit losses for financial assets are determined by the difference between contractual cash flows and expected cash flows[192] - The company's lease receivables' credit losses are determined by the present value of the difference between contractual cash flows and expected cash flows[192] - The company's inventory is subject to impairment provisions based on categories and regions, with similar products grouped for impairment assessment[200] - The company's financial assets are derecognized if control is not retained after transfer, even if risks and rewards are not fully transferred[194] Tax and Financial Benefits - The company benefited from tax exemptions on property tax and urban land use tax for the first half of 2023, reducing tax expenses by 64.75%[47] Cash Flow and Investments - Operating cash flow grew by 38.37% to 582,152,981.45 RMB, indicating strong cash generation from core operations[45] - Investment cash flow decreased by 149.73% to -92,831,524.90 RMB, primarily due to reduced investment activities[45] - The company's subsidiaries, including Wenxuan Media and Wenxuan Logistics, continue to operate with 100% ownership and are consolidated in the financial statements[188] Agreements and Transactions - The company renewed a property management service agreement with Xinhua Culture Property, with an annual transaction cap of RMB 50.5 million and actual transactions of RMB 18.63 million during the reporting period[105] - The company entered into a housing lease framework agreement with Sichuan Xinhua Publishing & Distribution Group, with an annual transaction cap of RMB 46 million and actual transactions of RMB 19.39 million during the reporting period[105] - The company signed a paper supply framework agreement with Minzu Publishing House, with an annual transaction cap of RMB 39 million and actual transactions of RMB 8.8 million during the reporting period[107] - The company signed a publication procurement framework agreement with Minzu Publishing House, with an annual transaction cap of RMB 11.5 million and actual transactions of RMB 2.68 million during the reporting period[107] - The company signed a special business cooperation framework agreement with Chengdu Bank, allowing the company to use up to 20% of its latest audited net assets for financial management services, with a maximum daily deposit balance of RMB 526.29 million and a cumulative financial management service fee of RMB 2,300[116]