HBMC(SZ:300027)2019-10-25 16:00Financial Performance - Operating revenue for the reporting period was ¥539,793,334.12, down 49.14% year-on-year[7]. - Net profit attributable to shareholders was -¥272,908,531.21, a decline of 634.11% compared to the same period last year[7]. - Basic earnings per share were -¥0.10, a decrease of 600.00% compared to the same period last year[7]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of -¥133,048,954.67, a decrease of 842.14% year-on-year[7]. - The net profit attributable to shareholders for the reporting period was -652.22 million yuan, a decrease of 298.56% compared to the same period last year[43]. - The total comprehensive income for the current period is a loss of CNY 726,246,457.00, compared to a profit of CNY 476,505,598.26 in the previous period[130]. - The total profit for the current period is a loss of CNY 700,224,956.52, contrasting with a profit of CNY 603,787,346.58 in the previous period[130]. Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥16,623,643,298.83, a decrease of 9.85% compared to the end of the previous year[7]. - The company's total liabilities reached CNY 7,737,434,165.90, compared to CNY 8,852,893,214.14 at the end of 2018, reflecting a reduction of approximately 13%[106]. - The company's current assets totaled CNY 5,799,942,480.32, down from CNY 7,532,789,740.32 in December 2018, indicating a decline of approximately 23%[100]. - The company's total non-current assets were CNY 10,823,700,818.51, slightly down from CNY 10,906,905,234.71, indicating a decrease of about 0.76%[100]. - The company's equity attributable to shareholders of the parent company was CNY 7,972,330,353.81, down from CNY 8,552,213,842.81, indicating a decline of around 7%[106]. Cash Flow - The net cash flow from operating activities was -¥193,892,564.99, an increase of 155.39% year-on-year[7]. - The company's cash flow from operating activities was a net outflow of 193.89 million yuan, a decline of 155.39% year-on-year, mainly due to payments for film distribution and investment[38]. - The company's cash flow from investing activities was a net inflow of 590.62 million yuan, an increase of 194.95% year-on-year, mainly due to proceeds from the sale of equity stakes in subsidiaries[38]. - The company's cash flow from investment activities showed a net outflow of -20,911,322.42, compared to -32,597,883.85 in the previous period, indicating improved investment performance[148]. Shareholder Information - The total number of shareholders at the end of the reporting period was 109,178[12]. - Major shareholder Wang Zhongjun holds 20.69% of the shares, with 578,234,062 shares[12]. - Tencent holds 7.88% of the shares, amounting to 220,363,501 shares[12]. - The actual controllers, Wang Zhongjun and Wang Zhonglei, hold a combined 28.53% stake, which provides relative control but poses risks if dilution occurs[86]. Business Strategy and Operations - The company continues to focus on the "film + real scene" strategy to enhance core competitiveness amid industry adjustments[24]. - The company has opened a total of 30 cinemas by the end of the reporting period, including one joint venture[27]. - The company plans to continue producing high-quality films and improve the monetization channels of valuable IP[50]. - The company is involved in various TV series and web dramas, with several projects scheduled for 2019, such as "The Glory Era" in October 2019[54]. - The company is integrating quality assets and adjusting strategies to maintain orderly progress in various businesses[49]. Risks and Challenges - The company faces risks from strict industry policies that could challenge its competitive advantage as regulations may loosen in the future, potentially allowing foreign enterprises to enter the market more easily[61]. - The company acknowledges the risk of revenue fluctuations due to the reliance on commercial blockbusters, which require significant investment and may not always perform well at the box office[68]. - The company is exposed to risks related to the approval process for films and television series, which could lead to project cancellations if they do not pass regulatory scrutiny[69]. - The company reported a significant risk associated with joint production control, particularly in television series where it typically acts as the executive producer, which may affect investment success[76]. Research and Development - R&D expenses increased by 165.61% to 48.66 million yuan, attributed to a rise in personnel costs[28]. - The company reported a significant increase in research and development expenses, rising to CNY 48,660,359.83 from CNY 18,319,940.01, an increase of about 165%[130]. Compliance and Governance - The company has maintained compliance with commitments made by its major shareholders and management, ensuring no conflicts of interest or competitive issues arise[90]. - There were no reported violations regarding external guarantees or non-operational fund occupation by major shareholders during the reporting period[95].