欢瑞世纪(000892) - 2021 Q1 - 季度财报

Important Notice The company's board and senior management guarantee the authenticity, accuracy, and completeness of this quarterly report - The company's Board of Directors, Supervisory Committee, and all directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of this quarterly report's content, and assume legal responsibility[4] - The company's legal representative Zhao Zhicheng, the person in charge of accounting, and the head of the accounting department Zeng Jiannan all declare their guarantee of the authenticity, accuracy, and completeness of the financial statements in the quarterly report[5] Company Profile This section presents key financial data for Q1 2021 and details on the company's shareholder structure Key Accounting Data and Financial Indicators In Q1 2021, revenue grew significantly due to the artist agency business, but net profit after non-recurring items declined and operating cash flow was negative Key Financial Indicators for Q1 2021 | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 28,025,357.95 | 11,729,739.38 | 138.93% | | Net Profit Attributable to Shareholders (RMB) | 18,551,902.22 | 14,304,563.63 | 29.69% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) (RMB) | 18,369,599.88 | 29,018,252.03 | -36.70% | | Net Cash Flow from Operating Activities (RMB) | -260,961,310.44 | -15,186,287.15 | Net cash outflow increased 1,618.40% | | Basic Earnings Per Share (RMB/Share) | 0.0189 | 0.0146 | 29.45% | | Total Assets (RMB) | 2,555,103,361.38 | 2,645,212,770.21 | -3.41% | - Non-recurring gains and losses for the period totaled RMB 182,302.34, primarily from government grants[9] Shareholder Information The company had 31,721 common shareholders, with major shareholders having concert party relationships and significant portions of their shares pledged or frozen - At the end of the reporting period, the total number of common shareholders was 31,721[11] Top 5 Shareholders' Holdings | Shareholder Name | Shareholding Ratio | Number of Shares | Pledged or Frozen Status | | :--- | :--- | :--- | :--- | | H&R Century Union | 10.87% | 106,651,376 | Pledged 105,504,587 | | Zhong Junyan | 6.17% | 60,569,259 | Pledged 60,569,258, Frozen 60,569,259 | | Tianjin H&R | 5.91% | 57,938,783 | Pledged 56,410,000 | | Qingyou Qianhe | 5.22% | 51,241,586 | Pledged 51,241,586 | | Zhejiang H&R | 5.01% | 49,194,111 | Pledged 49,194,110, Frozen 49,194,111 | - Two groups of concert parties exist among shareholders: 1) H&R Century Union, Tianjin H&R, Zhejiang H&R, Zhong Junyan, etc; 2) Qingyou Qianhe, Qingyou Ruihe, Hongdao Tianhua, Shenzhen Hongdao, etc[11] Significant Matters This section details significant financial fluctuations, major litigation, status of commitments, and the progress of projects funded by raised capital Analysis of Financial Indicator Changes Revenue increased due to the artist agency business, while cash outflows from investing and financing activities grew, and asset impairment losses were recognized - Operating revenue increased by 138.93% year-on-year, mainly due to a significant recovery in artist agency income compared to the pandemic-affected period last year[15] - Net cash outflow from operating activities increased by 1618.40%, primarily due to an increase in filming projects and payments of profit shares to co-producers[15] - Net cash outflow from investing activities increased by 141.66%, mainly due to increased external equity investments[15] - A new asset impairment loss of RMB 17,658,059.29 was recognized, resulting from increased provisions for certain film and television drama projects[15] Progress of Significant Matters The company is involved in two major litigations: a contract dispute over a TV series and investor claims for false statements, with provisions made accordingly - The company is in litigation and counter-litigation with Shanghai New Culture over the 'The Apocalypse of Fengshen' project, with amounts in dispute of RMB 147 million and RMB 144 million respectively; the case is in the first instance[16] - The company faces 27 lawsuits from plaintiffs regarding securities misrepresentation, with a total claim of approximately RMB 24.52 million, for which an equivalent provision was recognized in fiscal year 2020[16] Commitment Matters While no commitments were overdue, the completion of a 2018 performance commitment remains uncertain due to a qualified audit opinion on H&R Century Pictures - Due to the qualified opinion issued by the auditor on the 2018 financial statements of H&R Century Pictures, the completion status of its performance commitment for that year could not be determined[17] - The company's annual financial statements for 2019 and 2020 also received non-standard audit reports[17] - The company stated that the final confirmation of the performance commitment's completion will be made after the uncertainty causing the qualified opinion is resolved[18] Use of Raised Funds The progress of four TV drama projects funded by raised capital is slow, with over RMB 100 million in a dedicated account frozen due to litigation Progress of Investment Projects Funded by Raised Capital | Project Name | Planned Investment (RMB 10k) | Cumulative Investment (RMB 10k) | Investment Progress | Status | | :--- | :--- | :--- | :--- | :--- | | TV Series 'Mysterious Lotus Casebook' | 10,000.00 | 0.00 | 0.00% | Script revision | | TV Series 'The Empire of Yongle' | 25,000.00 | 24,519.99 | 98.08% | Under review for modification | | TV Series 'South Wind Knows My Mood' | 6,000.00 | 4,917.70 | 81.96% | Post-production | | TV Series 'In the Deep' | 4,000.00 | 4,000.00 | 100.00% | Distribution license obtained | - The slow progress of investment projects is attributed to industry regulations, market demand changes, post-production difficulties, and the impact of the pandemic[23] - As of the end of 2020, approximately RMB 103 million in the company's dedicated fund account was frozen due to the 'The Apocalypse of Fengshen' contract dispute[23] Significant Contracts The company signed a RMB 558 million contract with Alibaba for two film and television projects, with an advance payment received in April 2021 - The company signed a contract with Alibaba for two film and television projects totaling RMB 558 million[24] - As of the reporting period, one drama is in post-production and the other is in filming; the company received an advance payment of RMB 70.2 million in April 2021[24] Financial Statements This section provides an analysis of the consolidated balance sheet, income statement, and cash flow statement for Q1 2021 Consolidated Balance Sheet Analysis As of Q1 2021, total assets were RMB 2.56 billion, with a decrease in cash and an increase in inventory, while accounts payable decreased significantly Consolidated Income Statement Analysis Q1 2021 revenue was RMB 28.03 million and net profit was RMB 18.55 million, though profits were impacted by asset impairment losses and negative investment income Consolidated Cash Flow Statement Analysis The company's cash flow deteriorated, with a significant net operating cash outflow of RMB 261 million due to increased payments for production activities Audit Report The company's first-quarter 2021 financial report has not been audited - The company's first-quarter report is unaudited[50]