COL(SZ:300364)2023-08-30 16:00Financial Performance - The company's operating revenue for the reporting period was ¥651,048,579.58, representing a 34.54% increase compared to ¥483,922,753.54 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was -¥37,055,639.44, an improvement of 38.84% from -¥60,502,526.07 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥108,315,472.92, which is a decline of 141.70% compared to -¥44,729,871.83 last year[21]. - The net cash flow from operating activities was -¥17,228,861.01, slightly worse than -¥16,275,575.67 in the previous year, a decrease of 5.86%[21]. - The total assets at the end of the reporting period were ¥1,701,432,926.27, down 8.91% from ¥1,864,833,071.02 at the end of the previous year[22]. - The net assets attributable to shareholders of the listed company were ¥1,135,184,932.66, a decrease of 1.58% from ¥1,153,520,871.57 at the end of the previous year[22]. - The basic earnings per share were -¥0.0508, an improvement of 38.87% from -¥0.0830 in the same period last year[21]. - The diluted earnings per share were also -¥0.0508, reflecting a 38.87% improvement from -¥0.0798 last year[21]. - The weighted average return on net assets was -3.24%, an improvement from -3.94% in the previous year[21]. - The company plans not to distribute cash dividends or issue bonus shares[3]. Industry Trends - The digital content industry in China is projected to grow from RMB 14,935 million in 2022 to RMB 16,592 million by 2025, with a compound annual growth rate (CAGR) of 3.6%[50]. - The market size of the digital cultural entertainment industry increased from RMB 3,863 million in 2016 to RMB 7,651 million in 2021, reflecting a CAGR of 14.6%[50]. - In 2022, the Chinese online literature market size reached 38.93 billion yuan, with a year-on-year growth of 8.8%[76]. - The number of online literature users in China reached 492 million in 2022, with over 22.78 million registered authors[76]. - The overall impact scale of the Chinese online literature IP full copyright operation market exceeded 252 billion yuan in 2022, expected to surpass 300 billion yuan by 2025[76]. - The government has emphasized the importance of digital economy development, positioning it as a key driver for stable growth[52]. - The overseas market for online literature is experiencing continuous growth, enhancing the international influence of cultural brands[57]. Company Strategy and Operations - The company focuses on digital content production, copyright distribution, IP derivatives, and intellectual property protection as its core business[83]. - The company has signed numerous well-known authors and produced popular works across various genres, enhancing its content portfolio[63]. - The company is committed to the integration of technology and culture, aiming to drive the development of the digital economy[79]. - The company has trained over 90,000 aspiring writers through its "Online Big Class" initiative, promoting talent development in online literature[86]. - The company has established a multi-dimensional original content platform matrix to continuously produce high-quality content[84]. - The company has shifted from a single online literature production model to a comprehensive lifecycle management of literary IP[66]. - The company plans to acquire a 51.0414% stake in Beijing Hanmu Chunhua Animation Technology Co., Ltd. for RMB 137.81 million, enhancing its IP portfolio with successful projects like "The Legend of Luo Xiaohei," which has over 1 billion views and a box office revenue exceeding RMB 300 million[92]. - The company has produced over 180,000 hours of audio content using "AI anchors," significantly increasing its production capacity for audio books and other media[95]. - The company has established partnerships with major platforms such as Tencent, Bilibili, and iQIYI for animation projects, with the first preview of "Xiu Luo Wu Shen" set to premiere in September on Tencent Video[91]. - The company has over 5.5 million digital content resources and collaborates with over 600 copyright institutions, signing more than 2,000 well-known authors[99]. - The company has developed a comprehensive copyright protection system, utilizing a combination of technology, administrative, judicial, and social protections to safeguard digital rights[101]. - The company is exploring new media paid content opportunities and enhancing its distribution capabilities through partnerships with major reading and audio platforms[100]. - The company has set up subsidiaries in the US and Singapore, and a branch in Japan, to expand its international presence and leverage local market characteristics[97]. - The company has launched two platforms, "Rights Watch" and "No Copy," to support copyright protection and facilitate reporting of infringement[88]. - The company is actively developing multi-modal IP derivative content generation technologies, integrating AI for efficient content production across various formats[94]. - The company has a strong focus on AI-driven content generation, with ongoing projects translating works into multiple languages for distribution in North America, Europe, and Southeast Asia[95]. Financial Management - Operating costs rose to approximately 355.91 million, reflecting a 50.21% increase from 236.93 million in the previous year, mainly due to higher channel costs[106]. - Sales expenses surged by 115.31% to approximately 277.49 million, up from 128.88 million, attributed to increased promotional expenses[106]. - The investment income for the reporting period was approximately 54.76 million, reflecting a significant change due to the change in accounting method for long-term equity investments[107]. - The company reported a net cash outflow from operating activities of approximately -17.23 million, slightly worse than the previous year's outflow of -16.28 million[106]. - The cultural business generated revenue of ¥642,981,313.98, with a year-on-year increase of 35.51%, while the cost of sales was ¥349,939,961.93, reflecting a 50.08% increase compared to the previous year, resulting in a gross margin of 45.58%[128]. - Cash and cash equivalents at the end of the reporting period amounted to ¥325,883,277.73, representing 19.15% of total assets, down from 27.31% at the end of the previous year[130]. - The company's long-term equity investments increased to ¥248,516,150.60, accounting for 14.61% of total assets, up from 8.45% the previous year, indicating a significant growth of 6.16%[130]. - The company signed data content cooperation contracts with multiple model companies, enhancing its data asset value through a robust data protection and copyright system[125]. - The company's short-term borrowings decreased to ¥210,000,000.00, which is 12.34% of total assets, down from 14.35% the previous year, reflecting a reduction of 2.01%[130]. - The company reported a decrease in trading financial assets to ¥54,937,277.12, which is 3.23% of total assets, down from 5.45% the previous year, indicating a decline of 2.22%[130]. - The company’s prepayments increased to ¥208,947,618.42, representing 12.28% of total assets, up from 9.76% the previous year, showing a growth of 2.52%[130]. - The company’s intangible assets accounted for 16.74% of total assets, slightly increasing from 15.31% the previous year, reflecting a growth of 1.43%[130]. - The overall investment amount for the reporting period was ¥57,645,957.60, showing a slight decrease of 0.09% compared to the same period last year[135]. Accounting and Compliance - The company has classified non-current assets or disposal groups as held for sale if they meet the criteria of being expected to be sold within one year and likely to meet other classification conditions within a short term (typically 3 months) at the acquisition date[152]. - The fair value of the disposal group less costs to sell is to be used for subsequent measurement, with any increase in previously recognized impairment losses being reversed and recognized in the current profit or loss[153]. - The company’s intangible assets primarily consist of bought copyrights, software usage rights, and non-patented technologies[179]. - The company has adopted new accounting standards effective from January 1, 2023, which impacts the recognition of deferred tax assets and liabilities related to temporary differences arising from certain transactions[178]. - The company recognizes revenue based on the progress of performance obligations, using either input or output methods to determine the progress[187]. - The company has significant long-term equity investments in entities where it has control, joint control, or significant influence, which are accounted for using the equity method[157]. - The company has incurred research and development expenditures, which are categorized into research phase and development phase expenditures[181]. - The company’s investment properties are measured at cost and depreciated over their useful lives using the average annual method[169]. - The company has a policy for capitalizing borrowing costs directly attributable to the acquisition or construction of qualifying assets[173]. - The company has recognized deferred tax assets and liabilities based on the expected recovery of related assets or settlement of related liabilities at applicable tax rates[165]. - The group's revenue is primarily divided into cultural revenue and educational revenue, with cultural revenue including digital reading and audio income, internet service income, derivative rights licensing income, and intellectual property protection income[190]. - Digital reading and audio income is recognized based on traffic, confirmed by settlement documents, or based on actual settlement documents at year-end[190]. - Internet service income includes reading base operation support, technical operation services, and advertising income, recognized according to service agreements and confirmed settlement documents[191]. - Educational reading income is recognized upon delivery of educational reading products and receipt of acceptance documents[191]. - The group does not recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases[197]. - The group capitalizes borrowing costs for qualifying assets until there is a significant interruption in construction or production activities lasting over three months[194]. - The amortization of purchased copyrights is based on the contractually agreed usage period or estimated benefit period if not specified[200]. - The group recognizes derivative rights licensing income upon completion of contractual obligations and receipt of copyright acceptance letters from clients[191]. - The group confirms revenue from intellectual property protection based on settlement agreements and civil judgments[191]. - The group assesses the impairment of intangible assets and fixed assets based on their useful lives and valuation methods[199].