HONG KONG, Aug. 15, 2022 /PRNewswire/ — China Literature Limited (“China Literature”Or “the Company”Stock code 0772) The leading online library and intellectual property portal (“IP”) incubation platform in ChinaToday, the unaudited six-month end results were announced by June 30, 2022.
Highlights of the Results(1)
- Total revenues RMB4,087.2 Million (USD609.0 Million), compared with RMB4,342.1 millionIn the first half 2021.
- On a non-IFRS Basis(2)BasisThis is a core earnings goal that excludes certain non-cash items and/or one-time items.
– Operating profit increased 8.2% year-over-year to RMB693.8 Million (USD103.4 Million). Operating margin increased from 14.8% to 17.00%.
– Profit attributable to equity holders of the Company increased 0.2% year-over-year to RMB666.0 Million (USD99.2 Million). Its margin increased from 15.3% – 16.3%
– Basic earnings per share were RMB0.66. Earnings per share were diluted RMB0.65. - Based on IFRS:
– Operating profit was RMB251.2 million (USD37.4 million), compared with RMB1,284.0 millionIn the first half 2021. The main reason the year-overyear variation was due to a gain in RMB1,076.8 millionrelated to the sale of our stake in a joint enterprise in the first half of 2021.
– Profit attributable to equity holders of the Company was RMB228.5 Million (USD34.1 million), compared with RMB1,082.7 millionIn the first half 2021.
– Basic earnings per share were RMB0.23. Earnings per share were diluted RMB0.22.
(1) All figures are in USD and are based on USD1-RMB6.7114. |
Mr. Edward ChengChina Literature Chief Executive Officer said: “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”This category, which is mainly made up of physical book sales fell 21.2% over the past year. RMB48.9 million (USD7.3 million) in the first half of 2022.
Revenues cost decreased 5.5% year-over-year to RMB1,940.9 million (USD289.2 Millions), as a result of i) a decrease in amortization of intangible assets of content copyrights due to the high base effect in the prior corresponding period, ii) a reduction in platform distribution costs for our online businesses, and iii) lower content costs. Partly, the decrease in revenues was offset by an increase in production costs for TV, film, and animated series.
Gross profit To decrease 6.2% over the past year RMB2,146.3 million (USD319.8 Million). Gross margin was 52.5%, compared to 52.7% for previous periods.
Interest income increased 13.6% year-over-year to RMB68.9 million (USD10.3 Million), reflecting higher interest income from bank deposits.
Other losses, net were RMB235.4 million (USD35.1 Million), compared with net other gains of RMB901.1 MillionIn the previous corresponding time period. The main reason for the difference in year-overyear was a gain of RMB1,076.8 millionrelated to the sale our equity interest in Lazy Audio during 2021’s first half. Other losses in the first three quarters of 2022 were primarily due to fair value loss. RMB372.9 Million (USD55.6 Million) resulting from the decreased valuations of our investee companies, partially offset by a fair value gain of RMB112.2 Million (USD16.7 Million) due to a change in the fair value of consideration liabilities related to the acquisition of New Classics Media.
Marketing and selling costs decreased 17.6% year-over-year to RMB1,110.5 million (USD165.5 MillionAs part of cost control measures, efficiency improvement initiatives, and cost control measures in the first half of 2022, we reduced advertising and promotion costs for our online business. The decrease in advertising and promotion expenses was partially offset by higher marketing costs to promote drama series and films. The ratio of sales and marketing expenses to revenues has decreased from 31.0% in 2020 to 27.2% by 2022.
General and administrative expenses decreased 12.2% year-over-year to RMB557.5 Millions (USD83.1 million), primarily due to a decrease in research and development expenses. As a percentage of revenue, general and administrative expenses decreased to 13.6% from 14.6% for 2020.
Provision for impairment losses in financial assets reflected a provision for doubtful receivables. The provision for doubtful receipts was implemented in 2022’s first half. RMB60.5 million (USD9.0 million) on a net basis, mainly related to TV series and film projects.
Operating profit was RMB251.2 millions (USD37.4 Million), compared with RMB1,284.0 MillionIn the preceding corresponding period. Operating profit in non-IFRSTo increase 8.2% year-overyear RMB693.8 Million (USD103.4 million), reflecting our successful efforts to control operational costs.
Income tax expense was RMB108.2 Million (USD16.1 Million), compared with RMB284.4 MillionThe same period last year.
Profit attributable Equity Holders of the Company Was RMB228.5 Million (USD34.1 million), compared with RMB1,082.7 MillionIn the preceding corresponding period. Non-IFRS profit attributable to equity holders of the CompanyIncreased 0.2% year over year RMB666.0 millions (USD99.2 Million).
Key Operation Information
- The average MAUs of our self-owned platform products increased 13.8% from 232.7 million to 264.7 millions in the first half 2022. The following breakdown of MAUs can be found: i. MAUs on self-owned platform products increased 4.5% from 114.6 million – 119.8 millions, mainly due to our strengths in high quality content; ii. MAUs for our self-operated channels. TencentProducts increased 22.7% year over year from 118.1 million products to 144.9 millions, mainly due growth in users of our free-to-read content.
- The average MPUs of our self-owned platform platforms and self-operated channels fell 12.9% year over year from 9.3 million to 8.1 million in 2022. This is primarily due to casual users being attracted by our free-to-read content for the second half in 2021. Average MPUs remained stable, compared with 8.1 million in 2021’s second half.
- Our pay-to-read business’s monthly ARPU increased 6.6% from a year ago. RMB36.4To RMB38.8The first half of 2022 saw improvements in content operations, community features and recommendation efficiency. These factors drove the demand for premium content from paid users in the first half 2022.
- Average DAUs in our free-to read business were 14,000,000 June 2022Compared with 13 million in June 2021.
Other important information
- EBITDA declined 4.2% year over year RMB626.9 MillionTo RMB600.6 Million (USD89.5 Million) in the first half of 2022. Adjusted EBITDA rose 5.1% year-overyear RMB708.9 millionsTo RMB745.1 Million (USD111.0 Million) in the first half of 2022.
- As of June 30, 2022, the Company’s net cash positionWas RMB6,555.7 Million (USD976.8 millions).
- Free cash flow*Was RMB548.7 Million (USD81.7 million), compared to RMB278.9 MillionIn the first half 2021.
- New Classics Media has recorded on a separate basis RMB966.7 Million (USD144.0 Million) in revenues and RMB208.5 millions (USD31.1 Million) in profit attributable to equity holders of the company in the first half of 2022.
* Free cash flow: operating cash flow deducts payments for lease liabilities and payments for capital expenditures. |
Business Highlights
IP Creation
As we mentioned, our quality IP content starts in the online literature business. We remained focused on the core of our online pay-to-read business and strengthened our online literature IP community. The visibility, quality, and number of IP on our online literature platform increased in the first half 2022.
Our online literature platform has added approximately 300,000 authors and 600,000 novelists, with an increase of word count to 16 billion Chinese characters. We also improved our incubation and operations systems to accelerate the development of high-quality content within specific categories. We identified the potential for science fiction themes in the beginning of the year through internal analysis. This led us to organize two science-fiction writing contests and a series activities that resulted in the creation of approximately 20,000 science fiction works. A number of other well-known writers have also started to write science fiction. The first half saw 12 Platinum and Phenomenal Writers join our platform to produce science fiction novels. This makes science fiction one of the fastest growing genres on our platform.
This year marks the 20th anniversary for Qidian.com’s founding under China Literature. We have launched a new brand proposition and upgraded Qidian’s brand. “every good book is a new starting point”A brand mission of “good books never end” which are consistent with the Company’s mission. Quality will be our core. We will encourage content diversification and incubation to create a healthy environment for writers.
We have improved the quality of our literary IPs and taken cost control measures. We also proactively reduced sales and marketing costs. We have shifted our focus away from short-term revenue growth and towards optimizing operational efficiency as well as cost structure. Although we had to sacrifice some revenues in the current period, we believe these actions will help us build a solid foundation for our long-term business.
To protect the rights and interests writers, we increased our efforts against piracy issues. We used encryption watermarks, artificial intelligence, piracy detection, risk controls, and bans to enhance our copyright protection. We also continued to pursue IP infringement cases and litigate against piracy websites. Writers have recognized our strong efforts to protect copyright, IP, and gained their trust. This is an important part in the ongoing improvement to our content ecosystem.
Visualization of IP
IP visualization is our current focus. We achieved remarkable results in the first half of 2022. The continuous release of high quality content, especially blockbusters, was a reflection of the strong capabilities that China Literature has in re-creating literary stories visually, and supports our strategy in IP visualization.
- We launched many new works in the first half year, including:
– The drama series, A Lifelong Journey (人世间). This blockbuster series, adapted from Liang Xiaosheng’s Mao Dun Literature Prize-winning novel, set an 8 year record for CCTV-1 prime-time drama series ratings. It topped all charts across the internet and earned both fame and popularity.
– The drama series, Life is A Long Quiet River (心居). The viewership of this family drama series ranked first among local TV prime time drama series ratings nationwide in the first half of this year, and ranked second in the popularity ranking of iQIYI in the first half of this year, right after A Lifelong Journey (人世间).
– The drama series, The Wind Blows from Longxi (风起陇西). This drama series, adapted from Ma Boyong’s novel, was an innovative exploration into the theme of ancient spycraft. It received an 8.1 score on the Douban platform.
– The drama series, Master of My Own (请叫我总监). This romantic drama series ranked #1 in ratings for local TV primetime drama series nationwide. It also ranked #1 on the Youku Hot Drama Series List during its broadcast period.
– The film, Too Cool To Kill (这个杀手不太冷静). The film grossed a total of RMB2.6 billion, ranked second in the 2022 Spring Festival Box Office.
At the same time, we continued to work on serial development of IP drama series, such as Joy of Life (庆余年), My Heroic Husband (赘婿), and Dafeng Guardian (大奉打更人). We believe that the launch of these works will bring China Literature’s IP brand appeal to a higher level.
- In the animation segment, we launched new seasons of Stellar Transformations (星辰变) and Martial Universe (武动乾坤). At present, the series Stellar Transformations (星辰变) and Martial Universe (武动乾坤) have had 4 billion and 3 billion video views respectively, and ranked No.1 in terms of the average video views per episode among newly released animations on TencentVideo at the time they were launched in the first half year. Guduo data has shown that these are the 20 most popular domestic animation works. Tencent Video in the first half of 2022, 11 were adapted from China Literature’s IP.
- We continued to increase production capacity, accelerate IP visualization, incubate top IP, and continue to improve the comics segment. Our joint project TencentComics are adapting 300 online literary works to comics within three years is a good idea. More than 170 adapted comic works are available on the Internet. TencentComics platform. Some titles have become blockbusters such as Dafeng Guardian (大奉打更人), The First Sequence (第一序列) and Start with a Mountain (开局一座山).
- We strengthened our relationships with quality game production studios in the games segment. In the first half of this year, popular IPs such as Battle Through the Heavens (斗破苍穹) and The Naming of Night (夜的命名术) were licensed to game developers for adaptation. These adapted games will be released in the coming years, according to our expectations.
Commercialization
We built a solid foundation for the business in the first half 2022. We reduced the conversion time from IP products to offline products, increased the number of IP product types and IP, and made breakthroughs in product style, design, and theme. We focused our efforts on opportunities in consumer goods as well fashion toys and offline retail. Our initial success was achieved by working with industry upstream and downstream partners. We licensed one edition of toys sculptures featuring the theme character. “Medusa” from Battle Through the Heavens (斗破苍穹), which sold out immediately after the pre-sale launch with a GMV of RMB5,000,000. In future, we will develop derivatives adapted from more IP content, such as Joy of Life (庆余年), Lord of the Mysteries (诡秘之主), The King’s Avatar (全职高手) and Candle in the Tomb (鬼吹灯), and offer joint promotion for the launch of drama series, film, animation, comics, games and other content.
Overseas Business
We have continued to promote cultural exchanges and expand our international presence. As of June 30, 2022WebNovel, our online reading platform in foreign languages, offered approximately 2,600 Chinese-language works and approximately 420,000 original content pieces.
Social Responsibility
China Literature is mindful of its social responsibilities. It promotes reading habits through public welfare projects and social activities, in order to support the national campaign for literacy. “reading for all”. During the pandemic, we donated millions of membership cards for people in pandemic-affected regions. Shanghai, ShenzhenSuzhou, where they were able to access a large selection of works at no cost. On World Book and Copyright Day this year, we collaborated with the National Library of China, Shanghai Library, People’s Literature Publishing House, Posts & Telecom Press and hundreds of other publishing units to promote nationwide reading. The Qidian Reading App was launched in the “Nationwide Reading Month”Campaign with 217 high quality paid books available for free.
Outlook
Online literature has shown value and potential that goes beyond printed books. Our efforts will be crucial in achieving such value. China Literature started with online literature. Since then, it has expanded to other media formats such as film, animation, comics, games, and offline merchandise. Diverse works that are adapted from our original IP meet the cultural, literary, and entertainment needs of people. They also increase the bandwidth of the original story and create a mutually-reinforcing cycle. China’sThe IP industry is still very young and will require sustained investment in IP innovation and creative talent. We hope to strengthen our IP resources and work with industry partners to create IP that spans all value chains, in the service good stories that will last forever.
Literature Limited: About China
China Literature aims to create a rich and immersive intellectual property.“IP”) universe for the Mandarin-speaking world. It incubates original IPs via its online literature platform. These IPs can then be adapted on a variety digital entertainment mediums such as comics, animations, film, TV series, webseries, and games. The virtual world created by these digital offerings become an inseparable part of a user’s daily life. China Literature promotes IPs primarily through QQ Reading & Qidian, the leading online literature platforms. New Classics Media is a renowned production house for TV drama series and film. China. China Literature collaborates TencentIts shareholder and strategic partner, as also other third-party partnerships, to distribute and create IP content and increase its IP’s value. Many of the Company’s online literature works have been successfully adapted into animation, TV series, web series, film and games, including Joy of Life, Candle in the Tomb, Soul Land, The King’s Avatar and My Heroic Husband. China Literature’s rich and extensive content library as well as its unparalleled capability and resources to adapt IP into various entertainment formats is a significant competitive advantage that lies at the core of its business model. Visit www.China Literature.com for more information. http://ir.yuewen.com/.
Contact
For analysts/investors:
Maggie Zhou
Tel: +8621 6187 0500 ext. 80605
Email: [email protected]
For media:
Vivian Wang
Tel: +852 2232 3978
Email: [email protected]
Non-IFRS Financial Measures
For the convenience of the readers, this press release contains non-IFRS financial indicators to supplement the consolidated financial reports of the Company prepared in accordance IFRS. These unaudited non-IFRS financial measures should be considered in addition to, and not as a substitute for, measures of the Company’s financial performance prepared in accordance with IFRS. These non-IFRS financial measurements may be different from other companies’ terms. In addition, non-IFRS adjustments include relevant non-IFRS adjustments for the Company’s material associates based on available published financials of the relevant material associates, or estimates made by the Company’s management based on available information, certain expectations, assumptions and premises.
Our management believes that the presentation of these non-IFRS financial measures, when shown in conjunction with the corresponding IFRS measures, provides useful information to investors and management regarding the financial and business trends relating to the Company’s financial condition and results of operations. Our management also believes that the non-IFRS financial measures are useful in evaluating the Company’s operating performances. The Company may add or subtract items from time to time when reviewing its financial results.
Forward-Looking Statements
Forward-looking statements in this press release relate to the industry outlook, forecast business plans, and growth strategies of Company. These forward-looking statements are based upon information currently available to Company and are made on the basis of the outlook at time of this press release. They are based upon certain assumptions, assumptions, and premises. Some of these assumptions are subjective or outside our control. These forward-looking statement may prove to have errors and not be realized in the future. There are many risks and uncertainties that underlie forward-looking statements. Additional information regarding these uncertainties can be found on our corporate website in our other publicly disclosed documents.
CHINA LITERATURE | ||||
CONSOLIDATED INDIVIDUAL STATEMENT | ||||
Six months ended June 30 | ||||
2022 | 2021 | |||
(RMB in Million, unless otherwise stated) | ||||
Revenues | ||||
Online business(1) | 2,307.0 | 2,540.0 | ||
Intellectual property operations and others(2) | 1,780.2 | 1,802.2 | ||
4,087.2 | 4,342.1 | |||
Cost of revenues | (1,940.9) | (2,054.1) | ||
Gross profit | 2,146.3 | 2,288.1 | ||
Gross margin | 52.5 % | 52.7 % | ||
Interest income | 68.9 | 60.6 | ||
Other (losses/gains), net | (235.4) | 901.1 | ||
Marketing and selling expenses | (1,110.5) | (1,348.2) | ||
General and administrative expenses | (557.5) | (635.1) | ||
Reversal or net (provision for) impairment losses | (60.5) | 17.5 | ||
Operation profit | 251.2 | 1,284.0 | ||
Operating margin | 6.1 % | 29.6 % | ||
Finance costs | (31.6) | (34.6) | ||
Share of net profits of associates and joint ventures | 120.8 | 115.9 | ||
Profit before income taxes | 340.4 | 1,365.4 | ||
Income tax expense | (108.2) | (284.4) | ||
Profit for the period | 232.3 | 1,081.0 | ||
Margin net | 5.7 % | 24.9 % | ||
Profit attributableTo | ||||
Shareholders of equity in the Company | 228.5 | 1,082.7 | ||
Non-controlling interests | 3.7 | (1.8) | ||
232.3 | 1,081.0 | |||
Earnings per share | ||||
(in RMB/share | ||||
– Basic earnings per share | 0.23 | 1.08 | ||
– Diluted earnings per share | 0.22 | 1.07 | ||
Notes: | ||||
(1) Online business revenues are mainly based on online paid reading, online ads and distribution of third party online games. | ||||
(2) Revenues from intellectual property operations include revenues from the production and distribution of films, TV, web, animated and animated series, and films licensing. | ||||
CHINA LITERATURE | ||||
CONSOLIDATEMENT OF COMPREHENSIVE INDIVIDUAL INCOME | ||||
Six months ended June 30 | ||||
2022 | 2021 | |||
(RMB in Million) | ||||
Profit for the period | 232.3 | 1,081.0 | ||
Other comprehensive income/(loss): | ||||
Item that could be reclassified to profit or | ||||
Share of other comprehensive losses of associates | (0.5) | (2.4) | ||
Different currency translations | 46.1 | (40.6) | ||
This item cannot be reclassifiedTo profit, loss | ||||
Net (loss/gain) from changes in fair value | (6.6) | 5.9 | ||
Different currency translations | 71.8 | (2.2) | ||
110.9 | (39.2) | |||
Total comprehensive income for this period | 343.1 | 1,041.8 | ||
Total comprehensive income attributable to: | ||||
Shareholders of equity in the Company | 339.4 | 1,044.1 | ||
Non-controlling interests | 3.7 | (2.3) | ||
343.1 | 1,041.8 | |||
CHINA LITERATURE | ||||
INFORMATION FOR SEGMENTS | ||||
Six months ended June 30 | ||||
2022 | 2021 | |||
(RMB in Million, excluding percentages) | ||||
Revenues | ||||
Online business | 2,307.0 | 2,540.0 | ||
Intellectual property operations and other | 1,780.2 | 1,802.2 | ||
Total revenues | 4,087.2 | 4,342.1 | ||
Revenues | ||||
Online business | (1,146.7) | (1,336.0) | ||
Intellectual property operations and others | (794.1) | (718.1) | ||
Total cost of revenues | (1,940.9) | (2,054.1) | ||
Gross profit | ||||
Online business | 1,160.3 | 1,203.9 | ||
Intellectual property operations and other | 986.1 | 1,084.1 | ||
Gross profit | 2,146.3 | 2,288.1 | ||
Gross margin | ||||
Online business | 50.3 % | 47.4 % | ||
Intellectual property operations and others | 55.4 % | 60.2 % | ||
Gross margin | 52.5 % | 52.7 % | ||
CHINA LITERATURE | ||||
CONSOLIDATE STATEMENT FINANCIAL POSITION | ||||
As of | ||||
June 30, 2022 | December 31, 2021 | |||
(RMB in Million) | ||||
ASSETS | ||||
Non-current assets | ||||
Property, equipment and plant | 67.3 | 45.1 | ||
Right-of use assets | 227.2 | 281.5 | ||
Intangible assets | 7,437.0 | 7,455.5 | ||
Joint ventures and investments in associates | 1,055.7 | 932.3 | ||
Financial assets at fair market value through profit and loss | 953.5 | 1,310.0 | ||
Fair value financial asset through other | 8.3 | 14.1 | ||
Deferred income taxes assets | 244.7 | 271.8 | ||
Prepayments, deposits, or other assets | 234.5 | 256.7 | ||
10,228.1 | 10,567.0 | |||
Current assets | ||||
Inventories | 738.3 | 653.8 | ||
Film rights and television series | 944.4 | 1,090.9 | ||
Financial assets at fair market value through profit and loss | 4.5 | – | ||
Trade and notes | 2,541.3 | 2,747.2 | ||
Prepayments, deposits and assets | 1,168.1 | 1,032.0 | ||
Term deposits | 2,414.9 | 2,678.0 | ||
Cash and cash equivalents | 4,735.7 | 4,528.4 | ||
12,547.2 | 12,730.3 | |||
Total assets | 22,775.3 | 23,297.3 | ||
EQUITY | ||||
Capital and reserves attributable The equity | ||||
Share capital | 0.6 | 0.6 | ||
Shares held for RSU scheme | (17.5) | (17.5) | ||
Share premium | 16,403.0 | 16,412.7 | ||
Other reserves | 1,680.1 | 1,455.1 | ||
Accumulated losses | (436.0) | (664.6) | ||
17,630.3 | 17,186.5 | |||
Non-controlling interests | 0.5 | 0.5 | ||
TotalEquity | 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 | ||
Long-term payables | 6.5 | 9.1 | ||
Deferred income tax liabilities | 144.0 | 149.3 | ||
Deferred revenue | 27.7 | 28.8 | ||
Financial liabilities at fair value through profit or loss | 488.0 | 827.2 | ||
830.3 | 1,598.8 | |||
Current liabilities | ||||
Borrowings | 594.9 | 792.8 | ||
Lease liabilities | 83.8 | 72.6 | ||
Trade payables | 1,188.9 | 1,127.4 | ||
Other payables and accruals | 1,152.8 | 1,185.8 | ||
Deferred revenue | 679.0 | 669.8 | ||
Current income tax liabilities | 160.8 | 338.6 | ||
Financial liabilities at fair value through profit or loss | 454.1 | 324.7 | ||
4,314.3 | 4,511.5 | |||
Total liabilities | 5,144.5 | 6,110.3 | ||
Total equity 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 operating profit to EBITDA and | |||
Operating profit | 251.2 | 1,284.0 | |
Adjustments: | |||
Interest income | (68.9) | (60.6) | |
Other losses/(gains), net | 235.4 | (901.1) | |
Depreciation of property, plant and equipment | 9.6 | 9.5 | |
Depreciation of right-of-use assets | 49.9 | 32.4 | |
Amortization of intangible assets | 123.3 | 262.7 | |
EBITDA | 600.6 | 626.9 | |
Adjustments: | |||
Share-based compensation | 116.7 | 53.7 | |
Expenditure related 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 | |||||||
Adjustments | |||||||
As | Share-based | Net losses from investments | Amortization of | Tax effects | Non-IFRS | ||
(RMB in millions, unless otherwise specified) | |||||||
Operating profit | 251.2 | 116.7 | 305.9 | 20.1 | – | 693.8 | |
Profit for the period | 232.3 | 116.7 | 305.9 | 20.1 | (5.2) | 669.7 | |
Profit attributable to equity | 228.5 | 116.7 | 305.9 | 20.1 | (5.2) | 666.0 | |
EPS (RMB per share) | |||||||
– basic | 0.23 | 0.66 | |||||
– diluted | 0.22 | 0.65 | |||||
Operating margin | 6.1 % | 17.0 % | |||||
Margin net | 5.7 % | 16.4 % | |||||
Six months ended June 30 2021 | |||||||
Adjustments | |||||||
As | Share-based | Net (gains) from investments | Amortization | Tax effects | Non-IFRS | ||
(RMB in million, unless specified) | |||||||
Operating profit | 1,284.0 | 53.7 | (716.7) | 20.5 | – | 641.5 | |
Profit for the Period | 1,081.0 | 53.7 | (716.7) | 20.5 | 224.8 | 663.2 | |
Equity profits are the source of profit | 1,082.7 | 53.7 | (716.7) | 20.5 | 224.8 | 665.0 | |
EPS (RMB per share | |||||||
– Basic | 1.08 | 0.66 | |||||
– Diluted | 1.07 | 0.66 | |||||
Operating margin | 29.6 % | 14.8 % | |||||
Net margin | 24.9 % | 15.3 % | |||||
Notes: | |||||||
(1) Includes the disposal Loss/(Gains) and The fair value changes arising from our investee companies, The fair value changes of consideration liabilities | |||||||
(2) This amortization represents amortization of Intangible assets, TV series, and film rights that result from acquisitions. | |||||||
SOURCE China Literature
