China Literature Declares 2022 interim Outcomes

HONG KONG, Aug. 15, 2022 /PRNewswire/ — China Literature Restricted (“China Literature”Or “the Company”Inventory code: 0772), the main on-line library and mental property (“IP”) incubation platform in ChinaAt the moment, the unaudited outcomes of the six-month ended introduced by, June 30, 2022.

Highlights of Outcomes(1)

  • Complete revenues RMB4,087.2 Million (USD609.0 Million), in contrast with RMB4,342.1 hundreds of thousandsWithin the first half of 2021.
  • On a non-IFRS foundation(2)Foundation, which is meant for core earnings by excluding sure one time and/or non-cash objects
    –  Working revenue elevated 8.2% year-over-year to RMB693.8 Million (USD103.4 Million). Working margin elevated from 14.8% as much as 17.0%.
    –  Revenue attributable to fairness holders of the Firm elevated 0.2% year-over-year to RMB666.0 Million (USD99.2 Million). Its margin elevated from 15.3% – 16.3%
    –  Fundamental earnings per share have been RMB0.66. Earnings per share have been diluted RMB0.65.
  • On an IFRS foundation:
    –  Working revenue was RMB251.2 Million (USD37.4 hundreds of thousands), in contrast with RMB1,284.0 hundreds of thousandsWithin the first half of 2021. The principle purpose for the year-overyear distinction was a acquire of RMB1,076.8 Millionassociated to the sale within the first half 2021 of our stake in a three way partnership.  
    –  Revenue attributable to fairness holders of the Firm was RMB228.5 Million (USD34.1 million), in contrast with RMB1,082.7 MillionWithin the first half of 2021.
    –  Fundamental earnings per share have been RMB0.23. Earnings per share have been diluted RMB0.22.

(1) All figures in USD are based mostly upon USD1 to RMB6.7114.
(2) Non-IFRS changes don’t embody share-based compensation, M&A-related affect similar to internet losses/(beneficial properties), amortization of intangibles, and earnings tax results.
(3) Some figures on this press launch have been topic to rounding changes. The totals proven on this press launch could not replicate an arithmetic sum of the breakdown objects.

Mr. Edward ChengChina Literature Chief Govt Officer, stated: “During the first half of 2022, the overall macro environment presented many challenges and put pressure on our industry. The volatility of the market forced us to adopt a more forward-thinking and flexible approach, and to explore a healthier and more sustainable growth trajectory. We took initiatives to optimize costs and improve efficiency, and sharpened our focus on key business and long-term objectives. Our operational efficiency improved significantly as a result. Non-IFRS operating profit increased by 8.2% year-over-year to RMB693.8 millions, and non IFRS operating margin rose from 14.8% a decade ago to 17.0% during the first half 2022.

At the same time, we released compelling visual content including drama series A Lifelong Journey (人世间), Life is A Long Quiet River (心居), The Wind Blows from Longxi (风起陇西) and Master of My Own (请叫我总监), the film Too Cool to Kill (这个杀手不太冷静), as well as a number of exciting animated series. Our long-term strategy of IP adaptation to visual formats supported by the constant release of blockbusters and high-quality content was reflected in our extensive resources for transforming literary material into video. We also increased our copyright protections and anti-piracy efforts as part of improving our content ecosystem. This was widely recognized by our writers.

We believe that the cultural sector is in ChinaIt has tremendous potential. The industry’s long-term prospects and general trend have not been affected by the short-term challenges. Our long-term strategy is unchanged. We will continue to put our efforts into the development, incubation and operation good stories that can live forever.

Financial Review(3)

Revenues were RMB4,087.2 Million (USD609.0 Million), compared with RMB4,342.1 millionsIn the first half of 2021.

Online businesses generated significant revenue RMB2,307.0 millions (USD343.7 Million), compared with RMB2,540.0 MillionIn the first half 2021. This category is further broken down as follows: i. Online business revenues from Company’s self-owned platforms products were RMB1,763.1 Million (USD262.7 Million), compared with RMB1,880.7 Million in the prior corresponding period, mainly as a result of a reduction in spending on marketing for user acquisition for our online business as we took initiatives to optimize costs and improve operational efficiency during the first half of 2022; ii) online business revenues from our self-operated channels on Tencent products broadly stabilized at RMB347.5 million (USD51.8 Million), compared with RMB353.5 millionsIn the previous corresponding period, iii), and online business revenues via third-party platforms were RMB196.5 Million (USD29.3 million), compared with RMB305.8 million in the prior corresponding period, mainly as we suspended collaboration with certain third-party distribution partners during the first half of 2022.

Revenues from IP operations and others were RMB1,780.2 millions (USD265.2 million), compared with RMB1,802.2 Million in the prior corresponding period, among which i) revenues from IP operations were broadly stable at RMB1,731.3 millions (USD258.0 Million), compared with RMB1,740.1 MillionIn the first half of 2021, ii) revenues “others”The class, which consists primarily of bodily ebook gross sales, fell 21.2% 12 months over 12 months. RMB48.9 Million (USD7.3 million) within the first half of 2022.

Revenues price decreased 5.5% year-over-year to RMB1,940.9 hundreds of thousands (USD289.2 hundreds of thousands), because of i) a lower in amortization of intangible belongings of content material copyrights as a result of excessive base impact within the prior corresponding interval, ii) a discount in platform distribution prices for our on-line companies, and iii) decrease content material prices. The lower in revenues was partially offset partly by a rise of manufacturing prices for TV, movie and animated collection in addition to the rise in revenues.

Gross revenue To lower 6.2% year-overyear RMB2,146.3 Million (USD319.8 million). Gross margin was 52.5% compared to 52.7% in earlier intervals.

Curiosity earnings elevated 13.6% year-over-year to RMB68.9 hundreds of thousands (USD10.3 hundreds of thousands), reflecting greater curiosity earnings from financial institution deposits.

Different losses, internet have been RMB235.4 hundreds of thousands (USD35.1 Million), in contrast with internet different beneficial properties of RMB901.1 MillionWithin the earlier corresponding interval. The distinction in year-over-year was primarily due a acquire of RMB1,076.8 Millionassociated to the sale our fairness curiosity in Lazy Audio throughout 2021’s first half. Honest worth losses have been the primary purpose for different losses within the first quarter of 2022. RMB372.9 Million (USD55.6 Million) ensuing from the decreased valuations of our investee corporations, partially offset by a good worth acquire of RMB112.2 Million (USD16.7 Million) as a consequence of a change within the honest worth of consideration liabilities associated to the acquisition of New Classics Media.

Advertising and marketing and promoting bills decreased 17.6% year-over-year to RMB1,110.5 hundreds of thousands (USD165.5 MillionWe diminished promoting and promotion bills for our on-line enterprise as a part of price management measures and effectivity enchancment initiatives within the first half 2022. Nevertheless, the lower was partially offset partly by elevated advertising bills to advertise movies and drama collection. From 31.0% in 2020, the ratio of promoting and advertising bills to revenues decreased to 27.2% in 2022.

Basic and administrative bills decreased 12.2% year-over-year to RMB557.5 hundreds of thousands (USD83.1 million), primarily as a consequence of a lower in analysis and growth bills. As a share income, normal and administration bills declined to 13.6% from 14.6% in 2020.

Provision for impairment losses on monetary belongings mirrored a provision for uncertain receivables. The availability for uncertain receivables was carried out within the first half 2022. RMB60.5 Million (USD9.0 Million) on a internet foundation, primarily associated to TV collection and movie tasks.

Working revenue was RMB251.2 million (USD37.4 million), in contrast with RMB1,284.0 million within the prior corresponding interval. Non-IFRS working revenue elevated 8.2% year-over-year to RMB693.8 million (USD103.4 million), reflecting our profitable efforts to regulate operational prices.

Revenue tax expense was RMB108.2 million (USD16.1 million), in contrast with RMB284.4 million for a similar interval of final 12 months.

Revenue attributable to fairness holders of the Firm was RMB228.5 million (USD34.1 million), in contrast with RMB1,082.7 million within the prior corresponding interval. Non-IFRS revenue attributable to fairness holders of the Firm elevated 0.2% year-over-year to RMB666.0 million (USD99.2 million).

Key Working Data

  • Common MAUs on our self-owned platform merchandise and self-operated channels elevated 13.8% year-over-year from 232.7 million to 264.7 million within the first half of 2022. An additional breakdown of MAUs is as follows: i) MAUs on our self-owned platform merchandise elevated 4.5% year-over-year from 114.6 million to 119.8 million, primarily pushed by our strengths in high-quality content material; and ii) MAUs on our self-operated channels on Tencent merchandise elevated 22.7% year-over-year from 118.1 million to 144.9 million, primarily as a consequence of development in customers for our free-to-read content material.
  • Common MPUs on our self-owned platform merchandise and self-operated channels decreased 12.9% year-over-year from 9.3 million to eight.1 million within the first half of 2022, primarily as extra informal customers have been drawn to our free-to-read content material within the second half of 2021. Common MPUs remained steady as in comparison with 8.1 million within the second half of 2021.
  • Month-to-month ARPU for our pay-to-read enterprise elevated 6.6% year-over-year from RMB36.4 to RMB38.8 within the first half of 2022, reflecting enhancements in content material operations, neighborhood options, and advice effectivity. These drove the demand of paying customers for high-quality content material through the first half of 2022.
  • Common DAUs for our free-to-read enterprise have been 14 million in June 2022, in contrast with 13 million in June 2021.

Different Key Data

  • EBITDA decreased 4.2% year-over-year from RMB626.9 million to RMB600.6 million (USD89.5 million) within the first half of 2022. Adjusted EBITDA elevated 5.1% year-over-year from RMB708.9 million to RMB745.1 million (USD111.0 million) within the first half of 2022.
  • As of June 30, 2022, the Firm’s internet money positionWas RMB6,555.7 million (USD976.8 million).
  • Free money move*Was RMB548.7 million (USD81.7 million), in comparison with RMB278.9 million within the first half of 2021.
  • New Classics Media, on a standalone foundation, recorded RMB966.7 million (USD144.0 million) in revenues and RMB208.5 million (USD31.1 million) in revenue attributable to fairness holders of the corporate within the first half of 2022.

* Free money move: working money move deducts funds for lease liabilities and funds for capital expenditures.

Enterprise Highlights

IP Creation

As we have now talked about earlier than, the net literature enterprise is the place our high quality IP content material begins. We centered on fundamentals of our on-line enterprise in our core pay-to-read enterprise, and continued to strengthen our on-line literature IP ecosystem. In the course of the first half of 2022, the quantity, high quality and visibility of IP on our on-line literature platform continued to extend.

On the provision facet, our on-line literature platform added roughly 300,000 writers and 600,000 novels, with a rise in phrase rely of 16 billion Chinese language characters. On the identical time, we accelerated the event of high-quality content material in particular classes by enhancing our system for incubation and operations. For instance, at the start of this 12 months, we recognized by inner evaluation the rising potential of science fiction themes, main us to arrange two science fiction writing contests and a collection of actions, incubating about 20,000 science fiction works. Quite a lot of well-known writers in different thematic areas have additionally began to create science fiction. In the course of the first half, a complete of 12 Platinum and Phenomenal Writers on our platform began to supply science fiction novels, making science fiction the quickest rising style on our platform.

This 12 months marks the twentieth anniversary of the founding of Qidian.com below China Literature. We upgraded the model of Qidian, and launched a brand new model proposition of “every good book is a new starting point” and a model mission of “good books never end” that are per the Firm’s mission. With high quality because the core, we are going to give attention to the incubation of compelling on-line literature content material and encourage content material diversification to create a wholesome ecosystem for writers.

Whereas enhancing the standard and amount of our literary IPs, we additionally carried out price management measures, proactively diminished sure gross sales and advertising bills, and shifted our focus from prioritizing short-term income development to optimizing operational effectivity and value construction. Consequently, we gave up a portion of revenues through the present interval, however we imagine these measures will lay a stable basis for the wholesome growth of our long-term enterprise.

In an effort to defend the rights and pursuits of writers, we enhanced our efforts to fight piracy points. We deployed synthetic intelligence, encrypted watermarks, piracy detection and danger controls and bans to enhance our copyright safety and anti-piracy capabilities, and continued to litigate in opposition to piracy websites and IP infringement. Our sturdy efforts to guard copyright and IP have been acknowledged by writers, serving to to win their belief, and is a crucial a part of the continued enchancment of our content material ecosystem.

Visualization of IP

At the moment, IP visualization is the main focus of our work. Within the first half of 2022, we achieved exceptional outcomes. Steady launch of high-quality content material, notably blockbusters, mirrored the robust capabilities of China Literature in re-creating literary tales in visible codecs, and helps our technique of IP visualization.

  • Within the dwell motion TV and movie section, we maintained a top-tier stage of productions and launched a number of compelling new works within the first half of the 12 months, together with:
    –  The drama collection, A Lifelong Journey (人世间). Tailored from the Mao Dun Literature Prize-winning novel by modern author Liang Xiaosheng, this blockbuster collection set an 8-year file for CCTV-1 prime time drama collection rankings, topped all charts throughout the web, and achieved leads to each fame and recognition.
    –  The drama collection, Life is A Lengthy Quiet River (心居). The viewership of this household drama collection ranked first amongst native TV prime time drama collection rankings nationwide within the first half of this 12 months, and ranked second within the reputation rating of iQIYI within the first half of this 12 months, proper after A Lifelong Journey (人世间).
    –  The drama collection, The Wind Blows from Longxi (风起陇西). Tailored from the novel by Ma Boyong, this drama collection Was an revolutionary exploration of the theme of historical spycraft, with a rating of 8.1 on the Douban platform.
    –  The drama collection, Grasp of My Personal (请叫我总监). This romantic drama collection ranked first for native TV prime time drama collection rankings nationwide and ranked first within the record of scorching drama collection on Youku throughout its broadcast interval.
    –  The movie, Too Cool To Kill (这个杀手不太冷静). The movie achieved a field workplace of RMB2.6 billion, rating second within the 2022 Spring Pageant field workplace.

On the identical time, we continued to work on serial growth of IP drama collection, similar to Pleasure of Life (庆余年), My Heroic Husband (赘婿), and Dafeng Guardian (大奉打更人). We imagine that the launch of those works will deliver China Literature’s IP model enchantment to a better stage.

  • Within the animation section, we launched new seasons of Stellar Transformations (星辰变) and Martial Universe (武动乾坤). At current, the collection Stellar Transformations (星辰变) and Martial Universe (武动乾坤) have had 4 billion and three billion video views respectively, and ranked No.1 by way of the common video views per episode amongst newly launched animations on Tencent Video on the time of their launch interval within the first half of the 12 months. In line with knowledge from Guduo, among the many prime 20 most watched home animation works launched on Tencent Video within the first half of 2022, 11 have been tailored from China Literature’s IP.
  • Within the comics section, we continued to enhance manufacturing capability, speed up the method of IP visualization, and incubate prime IP. Our joint challenge with Tencent Comics to adapt 300 on-line literary works into comics in three years is progressing effectively. Proper now, over 170 tailored comedian works have been launched on the Tencent Comics platform. Some titles have turn into blockbusters, similar to Dafeng Guardian (大奉打更人), The First Sequence (第一序列) and Begin with a Mountain (开局一座山).
  • Within the video games section, we strengthened our partnerships with high quality sport manufacturing studios. Within the first half of this 12 months, in style IPs similar to Battle By means of the Heavens (斗破苍穹) and The Naming of Night time (夜的命名术) have been licensed to sport builders for adaptation. We count on to see the discharge of those tailored video games within the subsequent few years.

Commercialization of IP

Within the first half of 2022, we continued to construct a basis for the enterprise, shortening the conversion time from IP to offline merchandise, increasing the variety of IP and product varieties, and reaching breakthroughs in theme, product model and design. We centered on alternatives in client items, vogue toys and offline retail. We achieved preliminary success by working along with upstream and downstream companions within the business. For instance, we licensed a single version of toy sculptures of the theme character “Medusa” from Battle By means of the Heavens (斗破苍穹), which bought out instantly after the pre-sale launch with a GMV of RMB5 million. In future, we are going to develop derivatives tailored from extra IP content material, similar to Pleasure of Life (庆余年), Lord of the Mysteries (诡秘之主), The King’s Avatar (全职高手) and Candle within the Tomb (鬼吹灯), and supply joint promotion for the launch of drama collection, movie, animation, comics, video games and different content material.

Abroad Enterprise

We continued to advertise cultural alternate and increase our worldwide presence. As of June 30, 2022, WebNovel, our international language on-line studying model, provided roughly 2,600 works translated from Chinese language and roughly 420,000 unique content material works created regionally.

Social Duty

China Literature takes account of its social obligations by selling the event of fine studying habits by social actions and public welfare tasks with a view to assist the nationwide marketing campaign of “reading for all”. In the course of the pandemic outbreak this 12 months, we donated a number of hundreds of thousands of membership playing cards to customers in pandemic-affected areas together with Shanghai, Shenzhen and Suzhou, permitting them to learn numerous works at no cost. On World Guide and Copyright Day this 12 months, we collaborated with the Nationwide Library of China, Shanghai Library, Folks’s Literature Publishing Home, Posts & Telecom Press and lots of of different publishing models to advertise nationwide studying. Our Qidian Studying App launched the “Nationwide Reading Month” marketing campaign with 217 high-quality paid books out there at no cost studying for the primary time.

Outlook

On-line literature has begun to point out worth and prospects that transcend print. The conclusion of such worth will depend upon our efforts. With on-line literature as the start line, China Literature has steadily expanded to numerous media codecs together with drama collection, movie, animation, comics, video games and offline merchandise. Whereas assembly the various literary, leisure and cultural wants of individuals, varied works tailored from our unique IP amplify the bandwidth of the unique narrative and kind a mutually reinforcing virtuous cycle. China’s IP business remains to be at an early stage, and can want sustained funding in IP growth and inventive expertise. By strengthening our personal IP assets, we hope to hyperlink with business companions to create IP that spans the entire worth chain, within the service of fine tales that can dwell without end.

About China Literature Restricted

China Literature is devoted to constructing a deep and immersive mental property (“IP”) universe for the Mandarin-speaking world. It incubates unique IPs from its on-line literature platform, that are subsequently tailored on a variety of digital leisure mediums, together with comics, animation, movie, TV collection, internet collection and video games. The digital world created by these digital choices turn into an inseparable a part of a person’s every day life. China Literature creates and promotes IPs primarily by QQ Studying and Qidian, its main on-line literature platforms, in addition to New Classics Media, a famend movie and TV drama collection manufacturing home in China. China Literature collaborates with Tencent, its shareholder and strategic associate, in addition to different third-party companions to distribute and develop IP content material and to reinforce worth of its IP. Lots of the Firm’s on-line literature works have been efficiently tailored into animation, TV collection, internet collection, movie and video games, together with Pleasure of Life, Candle within the Tomb, Soul Land, The King’s Avatar and My Heroic Husband. China Literature’s wealthy and intensive content material library in addition to its unparalleled functionality and assets to adapt IP into varied leisure codecs is a major aggressive benefit that lies on the core of its enterprise mannequin. For extra data, please go to http://ir.yuewen.com/.

Contact

For buyers / analysts:
Maggie Zhou
Tel: +8621 6187 0500 ext. 80605
E-mail: [email protected]

For media:
Vivian Wang
Tel: +852 2232 3978
E-mail: [email protected]

Non-IFRS Monetary Measures

To complement the consolidated monetary statements of the Firm ready in accordance with IFRS, sure non-IFRS monetary measures, particularly non-IFRS working revenue, non-IFRS working margin, non-IFRS revenue for the interval, non-IFRS internet margin, non-IFRSProfit attributable to Fairness Holders of the Firm, non-IFRS primary EPS and non-IFRS diluted EPS as extra monetary measures, have been introduced on this press launch for the comfort of readers. These unaudited non-IFRS monetary measures needs to be thought of along with, and never as an alternative choice to, measures of the Firm’s monetary efficiency ready in accordance with IFRS. These non-IFRS monetary measures could also be outlined otherwise from comparable phrases utilized by different corporations. As well as, non-IFRS changes embody related non-IFRS changes for the Firm’s materials associates based mostly on out there revealed financials of the related materials associates, or estimates made by the Firm’s administration based mostly on out there data, sure expectations, assumptions and premises.

Our administration believes that the presentation of those non-IFRS monetary measures, when proven along with the corresponding IFRS measures, offers helpful data to buyers and administration relating to the monetary and enterprise traits referring to the Firm’s monetary situation and outcomes of operations. Our administration additionally believes that the non-IFRS monetary measures are helpful in evaluating the Firm’s working performances. Every now and then, there could also be different objects that the Firm could embody or exclude in reviewing its monetary outcomes.

Ahead-Wanting Statements

This press launch incorporates forward-looking statements referring to the business and enterprise outlook, forecast enterprise plans and development methods of the Firm. These forward-looking statements are based mostly on data presently out there to the Firm and are said herein on the premise of the outlook on the time of this press launch. They’re based mostly on sure expectations, assumptions and premises, a few of that are subjective or past our management. These forward-looking statements could show to be incorrect and might not be realized in future. Underlying the forward-looking statements is numerous dangers and uncertainties. Additional data relating to these dangers and uncertainties is included in our different public disclosure paperwork on our company web site.

CHINA LITERATURE

CONSOLIDATED INCOME STATEMENT








Six months ended June 30,



2022


2021



(RMB in million, except specified)

Revenues





On-line enterprise(1)

2,307.0


2,540.0


Mental property operations and others(2)

1,780.2


1,802.2



4,087.2


4,342.1

Value of revenues

(1,940.9)


(2,054.1)

Gross revenue

2,146.3


2,288.1


Gross margin

52.5 %


52.7 %

Curiosity earnings

68.9


60.6

Different (losses)/beneficial properties, internet

(235.4)


901.1

Promoting and advertising bills

(1,110.5)


(1,348.2)

Basic and administrative bills

(557.5)


(635.1)

Web (provision for)/reversal of impairment losses on
     monetary belongings

(60.5)


17.5

Operation revenue

251.2


1,284.0


Working margin

6.1 %


29.6 %

Finance prices

(31.6)


(34.6)

Share of internet revenue of associates and joint ventures

120.8


115.9

Revenue earlier than earnings tax

340.4


1,365.4

Revenue tax expense

(108.2)


(284.4)

Revenue for the interval

232.3


1,081.0


Web margin

5.7 %


24.9 %

Revenue attributableTo:





Fairness holders of the Firm

228.5


1,082.7


Non-controlling pursuits

3.7


(1.8)



232.3


1,081.0

Earnings per share




(in RMB per share)




– Fundamental earnings per share

0.23


1.08

– Diluted earnings per share

0.22


1.07


Notes:

(1) Revenues from on-line enterprise primarily replicate revenues from on-line paid studying, internet advertising and distribution of third-party on-line video games on our platform.

(2) Revenues from mental property operations and others primarily replicate revenues from manufacturing and distribution of TV, internet and animated collection, movies, licensing
    of copyrights, operation of self-operated on-line video games and gross sales of bodily books.

CHINA LITERATURE

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME



Six months ended June 30,



2022


2021



(RMB in million)




Revenue for the interval

232.3


1,081.0

Different complete earnings/(loss):




Merchandise which may be subsequently reclassifiedTo revenue or
loss





Share of different complete lack of associates
     and joint ventures

(0.5)


(2.4)


Foreign money translation variations

46.1


(40.6)






Merchandise that might not be reclassifiedTo revenue or loss





Web (loss)/acquire from change in honest worth of economic
     asset at honest worth by different
     complete earnings

(6.6)


5.9


Foreign money translation variations

71.8


(2.2)



110.9


(39.2)

Complete complete earnings for the interval

343.1


1,041.8

 

Complete complete earnings attributable to:





Fairness holders of the Firm

339.4


1,044.1


Non-controlling pursuits

3.7


(2.3)



343.1


1,041.8

CHINA LITERATURE

SEGMENT INFORMATION








Six months ended June 30,



2022


2021



(RMB in million, besides percentages)

Revenues





On-line enterprise

2,307.0


2,540.0


Mental property operations and others

1,780.2


1,802.2


Complete revenues

4,087.2


4,342.1






Value of revenues





On-line enterprise

(1,146.7)


(1,336.0)


Mental property operations and others

(794.1)


(718.1)


Complete price of revenues

(1,940.9)


(2,054.1)






Gross revenue


On-line enterprise

1,160.3


1,203.9


Mental property operations and others

986.1


1,084.1


Complete gross revenue

2,146.3


2,288.1






Gross margin





On-line enterprise

50.3 %


47.4 %


Mental property operations and others

55.4 %


60.2 %


Complete gross margin

52.5 %


52.7 %

CHINA LITERATURE

CONSOLIDATED STATEMENT OF FINANCIAL POSITION








As of



June 30, 2022


December 31, 2021



(RMB in million)

ASSETS




Non-current belongings





Property, plant and tools

67.3


45.1


Proper-of-use belongings

227.2


281.5


Intangible belongings

7,437.0


7,455.5


Investments in associates and joint ventures

1,055.7


932.3


Monetary belongings at honest worth by revenue or loss

953.5


1,310.0


Monetary asset at honest worth by different
     complete earnings

8.3


14.1


Deferred earnings tax belongings

244.7


271.8


Prepayments, deposits and different belongings

234.5


256.7



10,228.1


10,567.0

Present belongings





Inventories

738.3


653.8


Tv collection and movie rights

944.4


1,090.9


Monetary belongings at honest worth by revenue or loss

4.5



Commerce and notes receivables

2,541.3


2,747.2


Prepayments, deposits and different belongings

1,168.1


1,032.0


Time period deposits

2,414.9


2,678.0


Money and money equivalents

4,735.7


4,528.4



12,547.2


12,730.3

Complete belongings

22,775.3


23,297.3






EQUITY




Capital and reserves attributable to the fairness
     holders of the Firm





Share capital

0.6


0.6


Shares held for RSU scheme

(17.5)


(17.5)


Share premium

16,403.0


16,412.7


Different reserves

1,680.1


1,455.1


Collected losses

(436.0)


(664.6)



17,630.3


17,186.5

Non-controlling pursuits

0.5


0.5

Complete fairness

17,630.8


17,187.0





As of



June 30, 2022


December 31, 2021



(RMB in million)

LIABILITIES




Non-current liabilities





Borrowings


382.5


Lease liabilities

164.1


201.9


Lengthy-term payables

6.5


9.1


Deferred earnings tax liabilities

144.0


149.3


Deferred income

27.7


28.8


Monetary liabilities at honest worth by revenue or loss

488.0


827.2



830.3


1,598.8

Present liabilities





Borrowings

594.9


792.8


Lease liabilities

83.8


72.6


Commerce payables

1,188.9


1,127.4


Different payables and accruals

1,152.8


1,185.8


Deferred income

679.0


669.8


Present earnings tax liabilities

160.8


338.6


Monetary liabilities at honest worth by revenue or loss

454.1


324.7



4,314.3


4,511.5

Complete liabilities

5,144.5


6,110.3

Complete fairness and liabilities

22,775.3


23,297.3

CHINA LITERATURE

RECONCILIATION OF OPERATING PROFIT TO EBITDA AND ADJUSTED EBITDA



Six months ended June 30


2022


2021


(RMB in million)

Reconciliation of working revenue to EBITDA and
     adjusted EBITDA:




Working revenue

251.2


1,284.0

Changes:




Curiosity earnings

(68.9)


(60.6)

Different losses/(beneficial properties), internet

235.4


(901.1)

Depreciation of property, plant and tools

9.6


9.5

Depreciation of right-of-use belongings

49.9


32.4

Amortization of intangible belongings

123.3


262.7

EBITDA

600.6


626.9

Changes:




Share-based compensation

116.7


53.7

Expenditure associated to acquisition

27.8


28.3

Adjusted EBITDA

745.1


708.9

CHINA LITERATURE

RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS



Six months ended June 30, 2022


Changes


As
reported

Share-based
compensation

Web losses from investments
and acquisition(1)

Amortization of
intangible belongings(2)

Tax results

Non-IFRS


(RMB in hundreds of thousands, except in any other case specified)

Working revenue

251.2

116.7

305.9

20.1

693.8

Revenue for the interval

232.3

116.7

305.9

20.1

(5.2)

669.7

Revenue attributable to fairness
holders of
the Firm

228.5

116.7

305.9

20.1

(5.2)

666.0

EPS (RMB per share)







  – primary

0.23





0.66

  – diluted

0.22





0.65

Working margin

6.1 %





17.0 %

Margin internet

5.7 %





16.4 %










Six months ended June 30 2021


Changes


As
reported

Share-based
compensation

Web (beneficial properties) from investments
and acquisition(1)

Amortization of
intangible belongings(2)

Tax results

Non-IFRS


(RMB in million, except specified)

Working revenue

1,284.0

53.7

(716.7)

20.5

641.5

Revenue for the interval

1,081.0

53.7

(716.7)

20.5

224.8

663.2

Revenue attributable to fairness
holders of
the Firm

1,082.7

53.7

(716.7)

20.5

224.8

665.0

EPS (RMB per share)







  – primary

1.08





0.66

  – diluted

1.07





0.66

Working margin

29.6 %





14.8 %

Web margin

24.9 %





15.3 %


Notes:

(1) Contains the disposal Loss/(beneficial properties) and The honest worth adjustments arising from our investee corporations, the honest worth adjustments of consideration liabilities
     associated to theAcquisition of New Classics Media and the Compensation prices for sure staff and former homeowners of New Classics Media.

(2) Represents amortization of Intangible belongings and TV collection and movie rights ensuing from acquisitions.

SOURCE China Literature

Supply: China Literature Declares 2022 interim Outcomes

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