Mango Excellent Media Co., Ltd.
Annual Report 2023
April 2024
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Annual Report 2023
Section I Important Note, Table of Contents and Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and
executives of the Company hereby warrant that the information contained in this
Annual Report is true, accurate and complete and this Annual Report is free from any
misrepresentation, misleading statement or material omission, and agree to assume
joint and several liability for this Annual Report.
CAI Huaijun, Principal of the Company, ZHANG Zhihong, CFO and TAO Jinyu,
Chief Accountant, hereby represent that the financial statements contained in this
Annual Report are true, accurate and complete.
All directors of the Company attended the meeting of the Board of Directors
reviewing this Report.
This Report contains certain forward-looking statements regarding future plans,
development strategies and other projected matters, which do not constitute any
substantial covenant made by the Company to the investors and related persons. The
investors and related persons shall be fully aware of the relevant risks, and understand
the differences among such plans, forecasts and covenants.
The Company has stated in details the possible risks in its operation and
countermeasures in this Report. Investors are advised to refer to the Section III
“Management’s Discussion and Analysis – Prospects for future development of the
Company”.
According to the profit distribution proposal approved by the Board of Directors,
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the Company will distribute a cash dividend of RMB1.8 (tax inclusive) per 10 shares
to all shareholders on the basis of 1,870,720,815 shares, without distributing any bonus
shares or transferring any capital reserve to the share capital.
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Table of Contents
Section I Important Note, Table of Contents and Definitions ...............................................................................2
Section II Company Profile and Key Financial Indicators ...................................................................................7
Section III Management’s Discussion and Analysis ............................................................................................ 11
Section IV Corporate Governance ........................................................................................................................36
Section V Environmental and Social Responsibility ............................................................................................57
Section VI Important Events .................................................................................................................................58
Section VII Share Changes and Information of Shareholders ...........................................................................72
Section VIII Preference Shares ..............................................................................................................................79
Section IX Bonds.....................................................................................................................................................80
Section X Financial Report ....................................................................................................................................81
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List of References
1. Financial statements signed and chopped by the Principal, CFO and Chief Accountant of the Company;
2. Original of the auditor’s report stamped with the seal of the accounting firm and signed and chopped by the certified public
accountants;
3. Originals of all documents of the Company publicly disclosed on the website for information disclosure designated by the
China Securities Regulatory Commission during the Reporting Period and related announcements; and
4. Other references.
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Definitions
Terms means Definition
Mango Excellent Media, Company, we or
means Mango Excellent Media Co., Ltd.
the Listed Company
Mango Excellent Media Co., Ltd. means the full name of the Company in English.
MANGO means the short name of the Company in English.
Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., a wholly-
Happy Sunshine means
owned subsidiary of the Listed Company.
the online video platform affiliated to the Listed Company and operated by
Mango TV means
Happy Sunshine.
Hunan Golden Eagle Cartoon Media Co., Ltd., a wholly-owned subsidiary
Golden Eagle Cartoon means
of the Listed Company.
Xiaomang E-commerce Co., Ltd., a subsidiary controlled by the Listed
Xiaomang E-commerce means
Company.
Happigo means Happigo Co., Ltd., a wholly-owned subsidiary of the Listed Company.
Shanghai EE-Media Co., Ltd., a wholly-owned subsidiary of the Listed
EE-Media means
Company.
Mango Studios Culture Co., Ltd., a wholly-owned subsidiary of Happy
Mango Studios means
Sunshine.
Hunan Mango Entertainment Co., Ltd., a wholly-owned subsidiary of Happy
Mango Entertainment means
Sunshine.
Shanghai Mangofun Technology Co., Ltd., a wholly-owned subsidiary of
Mangofun means
Happy Sunshine.
Mango Media means Mango Media Co., Ltd., the controlling shareholder of the Company.
Golden Eagle Broadcasting System Co., Ltd., the parent company of Mango
GBS means
Media Co., Ltd. as the controlling shareholder of the Company.
Hunan State-owned Cultural Assets Supervision and Administration
Hunan Cultural Assets Commission means
Commission, the actual controller of the Company.
the company that operates GBS in an integrated manner, where they are
Hunan Broadcasting System means managed under the model of “one Party committee, two entities and
integrated operation”.
HBNHG means Hunan Broadcasting Network Holding Group Co., Ltd., a subsidiary of GBS.
Xiaoxiang Film Group means Xiaoxiang Film Group Co., Ltd., a subsidiary of GBS.
HTBI means Hunan TV & Broadcast Intermediary Co., Ltd.
China Mobile means China Mobile Communications Group Co., Ltd.
Internet protocol television, a technology integrated with Internet,
multimedia, communication and other technologies that provides home users
IPTV means
with digital television and other interactive services through broadband
network.
over the top, which provides a variety of video and data services to users via
OTT means
the Internet.
intellectual property, the property rights given to persons over the creations
IP means
of their minds.
APP means application, i.e. mobile application program.
PAD means portable device.
PC means personal computer.
TV means television.
AR means augmented reality.
VR means virtual reality.
5G means 5G network.
QM means QuestMobile, a mobile web big data company.
AIGC means AI generated content.
Chat Generative Pre-trained Transformer, a large language model based on
ChatGPT means
the GPT-4 architecture developed by OpenAI
a data platform which carries out statistics and analysis of the program
Enlightent means
broadcast data of long video platforms and channels
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Section II Company Profile and Key Financial Indicators
I. Company profile
Stock short name Mango Stock code 300413
Chinese name 芒果超媒股份有限公司
Chinese short name 芒果超媒
English name (if any) Mango Excellent Media Co., Ltd.
English short name (if any) Mango
Legal representative CAI Huaijun
Registered address Golden Eagle TV Culture City, Changsha, Hunan
Postal code of registered
410003
address
History of changes in
None
registered address
Office address Golden Eagle TV Culture City, Changsha, Hunan
Postal code of office address 410003
Company website https://www.mgtv.com
Email mangocm@mangocm.com
II. Contact person and contact information
Board Secretary Securities Affairs Representative
Name ZHANG Zhihong ZHOU Yong
Golden Eagle TV Culture City, Golden Eagle TV Culture City,
Address
Changsha, Hunan Changsha, Hunan
Telephone (0731) 82967188 (0731) 82967188
Facsimile (0731) 82897962 (0731) 82897962
Email mangocm@mangocm.com mangocm@mangocm.com
III. Information disclosure and place for keeping annual report
Website of the stock exchange for disclosing the Company’s
http://www.szse.cn
annual report
The China Securities Journal, the Securities Times, the
Media and website for disclosing the Company’s annual report Securities Daily, the Shanghai Securities News and
http://www.cninfo.com.cn
Place for keeping the Company’s annual report Board of Directors Office of the Company
IV. Other related information
Accounting firm engaged by the Company:
Name of accounting firm Pan-China Certified Public Accountants LLP
6/F, No. 128, Xixi Road, Xihu District, Hangzhou City,
Office address of accounting firm
Zhejiang Province
Name of accountants signing this Report ZHENG Shengjun and HU Jian
Sponsor engaged by the Company that performs the duties of ongoing supervision over the Company during the Reporting Period:
Applicable N/A
Names of sponsor Period of continuous
Name of sponsor Office address of sponsor
representatives supervision
China International Capital 27 & 28/F, Block 2, China YAO Xudong and WANG From August 24, 2021 to
Corporation Limited World Towers, No. 1 Kun December 31, 2023
7
Jianguomenwai Street,
Chaoyang District, Beijing
Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the Reporting
Period:
Applicable N/A
V. Key accounting data and financial indicators
Did the Company need to retrospectively adjust or re-state accounting data of prior accounting years?
Yes □No
Reason for retrospective adjustment or re-statement:
Changes in accounting policies, the business combination involving entities under common control, and other reasons.
Increase/decrease
2022 2021
2023 YoY
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Operating revenue
14,628,016,301.84 13,704,339,712.31 13,976,774,034.92 4.66% 15,355,863,482.07 15,800,575,582.17
(RMB)
Net profit attributable to
shareholders of the Listed 3,555,705,558.90 1,824,925,935.93 1,864,245,432.69 90.73% 2,114,090,171.85 2,173,186,477.07
Company (RMB)
Net profit attributable to
shareholders of the Listed
Company less non- 1,695,473,001.05 1,587,332,987.64 1,604,009,042.23 5.70% 2,059,758,151.24 2,067,988,835.94
recurring gain or loss
(RMB)
Net cash flow from
operating activities 1,083,773,256.71 551,646,897.99 621,803,699.44 74.30% 561,800,882.37 591,807,858.26
(RMB)
Basic earnings per share
1.90 0.98 1.00 90.00% 1.17 1.20
(RMB/share)
Diluted earnings per
1.90 0.98 1.00 90.00% 1.17 1.20
share (RMB/share)
Weighted average return
17.34% 10.20% 10.17% 7.17% 16.25% 16.22%
on equity
Increase/decrease
End of 2022 End of 2021
End of 2023 YoY
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Total assets (RMB) 31,422,386,654.49 29,049,673,556.55 29,783,551,722.86 5.50% 26,110,751,404.90 26,809,389,379.67
Net assets attributable to
shareholders of the Listed 21,492,422,786.43 18,850,714,836.78 19,014,691,412.16 13.03% 16,966,400,358.23 17,373,834,160.11
Company (RMB)
Reason for changes in accounting policies and correction of accounting errors:
Since January 1, 2023, we have adopted the provisions contained in the Interpretation of the Accounting Standards for Business
Enterprises No. 16 issued by the Ministry of Finance, regarding the “accounting treatment of deferred taxes related to assets and
liabilities arising from single transactions to which the initial recognition exemption does not apply”, and adjusted the single
transactions to which such provisions apply that occurred during the period from the beginning of the earliest period in which we
adopted such provisions in the presentation of the financial statements for the first time, till the date of initial adoption of such provisions
as follows: with respect to the taxable temporary difference and deductible temporary differences arising from lease liabilities and
right-of-use assets, provisions related to retirement obligations and corresponding assets recognized in connection with the single
transactions to which such provisions apply, at the beginning of the earliest period in which we adopted such provisions in the
presentation of the financial statements for the first time, the cumulative effect is treated as an adjustment to the opening retained
earnings and other related financial statement items for that period in accordance with such provisions and the provisions of the CASBE
No. 18 – Income Tax.
Whether the lower of the net profit before and after deduction of non-recurring gain or loss in the past three accounting years has been
negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concern is uncertain?
□Yes No
Whether the lower of the net profit before and after deduction of non-recurring gain or loss is negative?
□Yes No
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VI. Key financial indicators by quarter
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 3,101,059,998.83 3,691,961,699.32 3,573,177,607.48 4,261,816,996.21
Net profit attributable
to shareholders of the 548,278,325.03 711,208,458.41 521,322,289.18 1,774,896,486.28
Listed Company
Net profit attributable
to shareholders of the
Listed Company less 521,486,713.37 657,359,741.32 443,861,449.84 72,765,096.52
non-recurring gain or
loss
Net cash flow from
-252,682,158.94 1,299,068,498.96 44,571,778.27 -7,184,861.58
operating activities
Whether there’s any material difference between the financial indicators or aggregate amounts thereof set out above and the
corresponding financial indicators set out in any quarter report or semi-annual report of the Company already disclosed?
Yes □No
The differences between the indicators set out above and the corresponding indicators contained in the quarterly reports and semi-
annual reports already disclosed were primarily due to the effect of the business combination involving entities under common control
(Hunan Golden Eagle Cartoon Media Co., Ltd.).
VII. Differences in accounting data arising from adoption of foreign and Chinese accounting
standards concurrently
1. Differences between net profit and net assets disclosed on the financial statements according to the
international accounting standards and the Chinese accounting standards concurrently
Applicable N/A
During the Reporting Period, there was no difference in net profits and net assets in the financial report disclosed in accordance with
the international accounting standards and the Chinese accounting standards.
2. Differences between net profit and net assets disclosed on the financial statements according to the foreign
accounting standards and the Chinese accounting standards concurrently
□Applicable N/A
During the Reporting Period, there was no difference in net profits and net assets in the financial report disclosed in accordance with
the foreign accounting standards and the Chinese accounting standards.
VIII. Items and amounts of non-recurring gain or loss
Applicable □N/A
In RMB
Item Amount in 2023 Amount in 2022 Amount in 2021 Remark
Gain or loss on disposal of non-current
assets (including the written-off part of the 1,151,553.70 807,213.90 501,358.91
asset impairment reserve accrued)
Government subsidies accrued to the current
profit and loss (excluding government
subsidies that are closely related to the
business of the Company and are provided 63,122,567.77 29,499,336.70 27,521,238.14
in fixed amount or quantity continuously
according to the applicable polices and
standards of the country)
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Profit and loss from investment or asset
92,809,746.83 119,290,763.72 34,265,617.23
management by commissioned parties
Reversal of impairment loss on accounts
receivable tested for impairment 17,343,043.26 3,355,000.00 4,843,660.00
individually
Net profit or loss of subsidiaries acquired
through business combination involving
entities under common control from the 32,481,963.81 39,292,296.69 59,525,956.70
beginning of the current period to the
combination date
Profit and loss from debt restructuring 3,000,000.00 27,219,600.00
One-off
One-off effect of adjustments of tax, adjustment due to
accounting and other laws and regulations 1,628,790,218.38 changes in the
on current profit or loss enterprise income
tax policy
Other non-operating revenue and
25,036,359.58 41,319,889.16 -21,265,876.15
expenditure other than those listed above
Less: Effect on income tax
243,024.40
Effect on minority interests (tax
3,259,871.08 547,709.71 194,313.70
exclusive)
Total 1,860,232,557.85 260,236,390.46 105,197,641.13 --
Specific circumstances of other gain or loss items that meet the definition of non-recurring gain or loss:
□Applicable N/A
We do not have any other gain or loss items that can be defined as non-recurring gain or loss.
Statement on defining non-recurring gain or loss items listed in the Explanatory Announcement No. 1 on Information Disclosure of
Publicly Listed Companies – Non-recurring Gain or Loss as recurring gain or loss items
□Applicable N/A
We do not have any non-recurring gain or loss items listed in the Explanatory Announcement No. 1 on Information Disclosure of
Publicly Listed Companies – Non-recurring Gain or Loss defined as recurring gain or loss items.
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Section III Management’s Discussion and Analysis
I. Situations of our industry during the Reporting Period
1. Media convergence enters a new stage, and the mainstream media greet strategic opportunities.
Since the overall implementation of media convergence as a national strategy, the development of media convergence has yielded
remarkable results, including continuously expanding all-media arena, numerous phenomenal convergence media products, and wider
and deeper mainstream communication through network channels. At present, China’s media convergence process has gradually moved
from “addition” toward “convergence”, and in the context of new ecosystem and new technologies, entered the new stage of all-round
development and system building. In the new journey, the mainstream media have the duty to continuously build a healthy network
ecosystem, step up the development of media convergence, improve the communication and leadership powers, influence and public
credibility of mainstream opinions, and provide strong support to the building of a strong country and national rejuvenation of China
in the field of public opinions and communication.
2. Content supply focuses on top-tier works, and the share of exclusively broadcast films, TV dramas and variety shows is
increasing.
Though the major long video platforms may adopt different content patterns, TV dramas and variety shows are their foundation.
According to Enlightent, in 2023, the supply of variety shows, films and TV dramas was generally stable, the number of new works
was almost the same as that in 2022, and the video platforms focused more on top-tier works that can remarkably attract new users and
vertical contents focusing on core users, and cut certain ordinary contents having a poor return on investment. In terms of broadcasting
strategy, the video platforms adopted exclusive broadcast as their primary strategy, with the share of exclusively broadcast new TV
dramas and series increasing from 72% to 78%, the share of variety shows exclusively broadcast on TV and online both exceeded 50%,
and the share of variety shows exclusively broadcast online reached 93%. As micro and short dramas become a new incremental content
market, the long video platforms have increased their deployment in short dramas.
3. The long video user base is basically stable and membership operation enters a high-quality development stage.
According to QuestMobile, the number of online video users was 786 million in December 2023, almost the same as one year
ago. The competition pattern of the domestic long video industry has gradually shifted from the original “top 3” toward “2+2” top 4
video platforms. The user base and duration of watch time on the major video platforms may fluctuate due to the release of key contents
and popular programs, but the overall competition pattern is stabilizing. In the context of competition over existing users, the platforms
are actively exploiting existing users taking into account their user development stage, developing new user terminals and channels,
improving the refined content operation level, and increasing their ARPPU, in order to achieve high-quality development.
4. The industry is gradually regaining its confidence, and the advertising market is showing a structural recovery trend.
According to CTR, the domestic advertising market was gradually recovering amid fluctuations in 2023, up about 6% year on
year. Despite the recovery of the market confidence to a certain extent, certain advertisers are cautious in the utilization of their
advertising budget. In terms of different advertisement types, general performance-based advertisements have taken the lead in strong
recovery, while the recovery of brand advertisements lags behind. When the consumer market enters an upward cycle, a more reliable
and sustainable recovery of brand advertisements can be expected, due to replenishment of budget. The top-tier media have relative
advantages in market competition due to their brand value, user access and transformation effect. AI and other technologies may bring
about new drives for the upgrading of advertisement operation system.
5. Large screen users are increasing stably, and the new policies promote the healthy development of the industry.
The industrial authorities have taken a combination of actions against the Matryoshka doll-style charges, complicated operations
and other problems existing in the household large screen TV business, to continuously regulate the order of business operation of the
industry, and achieved staged results of governance. IPTV and OTT license holders are expected to benefit from the regulatory
compliant and high-quality development of the industry. According to Gozen Analytics, in 2023, the percentage of homes using IPTV,
OTT and other types of intelligent TV in China was 52% per day or 91% per month, which was basically stable. As of the end of 2023,
there were 326 million intelligent TV subscribers in China, an increase of 4% year on year. As a household information and
entertainment hub and major channel for the content ecosystem of long and short video platforms, intelligent TV still occupies an
important position in content terminals.
6. AIGC promotes industrial reform and enables the application scenarios in the field of media in an all-round way.
In July 2023, the Cyberspace Administration of China and other six authorities jointly promulgated the Interim Measures for the
Administration of Artificial Intelligence Generated Content Services, designed to promote the healthy development of the artificial
intelligence generated content (AIGC) industry with policies. AIGC provides a new way to create content following PGC and UGC.
A large number of large model products have been released, and widely applied in the exploration of innovative applications and
business models in gaming, social networking, video and other media fields. The continuous upgrading of AI models is expected to
create more application scenarios and space for growth, further reduce content production costs, improve the efficiency and quality of
content production, and open up new commercial spaces.
II. Our main business during the Reporting Period
We are required to comply with the disclosure requirements for “Internet Video Business” set forth in the Guide on Self-regulatory
Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 – Disclosure of Industry Information by the Companies
Listed on the ChiNext Board.
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We are the sole state-owned long video and new media company listed on the A-share market, represent an important achievement
in reform made by the Hunan Broadcasting System (HBS) in actively responding to the strategy of the Central Government on
promoting the in-depth media convergence and development, and are one of the first group of leading entities in the convergence of
radio, TV and media named by the State Administration of Radio, Film and Television (“SARFT”). Leveraging the Mango media
convergence ecosystem, and centered on our Internet video platform, Mango TV, we have focused on the control of the entire industry
chain and ecosystem synergy, integrated resources of key elements, opened up the upstream and downstream of the industry chain,
established an interconnected ecosystem matrix with multiple linkages, and built a mainstream new media group with strong leadership,
communication and competitive powers. We are primarily engaged in Mango TV Internet video, new media interactive entertainment
content production, and content e-commerce businesses.
1. Mango TV Internet video
Our Mango TV Internet video business comprises advertising, membership and operator businesses, where the membership
business is designed to attract target audience to become subscribing members through promotional campaigns and channel expansions,
by leveraging our rich copyright resources and premium exclusive contents; the advertising business focuses on contents, fully explores
the marketing value of high-quality content IPs, and provides clients with naming, placement, patching, inserting and other advertising
products and services; and in the operator’s large-screen business, we, as a license holder with advantageous contents, cooperate with
telecommunication carriers and cable TV operators, and share the revenues from VOD with them.
2. New media interactive entertainment content production
Our new media interactive entertainment content production business mainly comprises content production and operation, artist
agency, music copyright, and IP derivatives businesses; in the content production and operation business, we create and produce variety
shows, films, TV dramas, cartoons for children and other programs, and earn revenues through copyright distribution, content operation
or otherwise; in the artist agency business, we build an echelon of artists at all levels and of various types, and create a closed loop by
arranging for the artists to take part in films, TV dramas, variety shows, commercial performances, branded concerts or otherwise; in
the music copyright business, we grant licenses on the basis of music IP resources accumulated and continuously enriched by the artists;
and in the IP derivatives business, we develop multi-dimensional derivatives based on our premium content IPs, and M-CITY, Maiji
and other offline location based entertainment and amusement brands.
3. Content e-commerce
In the content e-commerce business, leveraging our advantages in media creativity and content production, we conduct integrated
communications and marketing through APP, large screen, mini program, live streaming room and other channels, to attract consumer
demands and sell goods. Xiaomang e-commerce is designed as “a content e-commerce platform focusing on home-made new fashions”,
that focuses on the integration of IP content and e-commerce modes, creates the “super live steaming rooms” with the help of multiple
unique content-based product lines, and continuously improves the closed loop of “content + video + e-commerce”. Happigo e-
commerce targets silver-haired old people on the basis of large screen TV audience, serves high-end members through private domain
marketing, and sells goods through TV, APP and other channels.
III. Analysis of core competencies
1. Platform advantages
As a Party-controlled media and state-owned enterprise, we inherit the media gene that “orientation is more precious than gold”,
enter the main battlefield as a main force, stick to the correct political direction, direction of guidance of public opinion and orientation
of values, strictly implement the content “three reviews” system and the responsibility system for ideological work, build a strong
ideological front, vigorously create a sound network ecosystem, and improve the communication and leaderships powers, influence
and public credibility of mainstream public opinions. We have precise insight, profound understanding and strong execution capability
in mainstream communication, and integrate mainstream communication with the communication system for social mainstream
cultural values.
2. Advantages in convergence
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The Report to the 20th National Congress of the Communist Party of China (“CPC”) requires the improvement of the systems for
communications across all forms of media and creation of a new environment of mainstream public opinion”, which marks that the in-
depth media convergence enters a period of important opportunities for high-quality development. We have intensively implemented
the strategic plan made by the Central Government on accelerating the in-depth media convergence, and built an integrated ecosystem
comprising Mango TV, Golden Eagle Cartoon, Xiaomang e-commerce and Hunan Satellite TV. Through multi-screen linkage, multi-
domain marketing and diversified convergence, the four platforms give full play to the effect of business synergy and resource
integration, create a linked development model featuring joint creation and sharing, and effectively transform the advantages of media
convergence into drives for development.
3. Institutional advantages
Relying on our efficient and flexible market-oriented operating mechanism, we continuously improve the management and
operating efficiency of our platforms, implement the compensation and incentive system that gives more pay for more work, and gives
priority to efficiency, to stimulate the employees’ creativity; grant the power to manage and allocate personnel and property to the
front-liners based on the four-level management system comprising independent studios, teams, etc.; accelerate the competition among
internal teams through market-oriented talent flows, “H” type double talent channel management, young talent training project or
otherwise; and use the “intelligent mid-end matrix” to build a content-technology-risk control-operation coordinated linkage
mechanism, to further liberate the productive forces of content teams.
4. Advantages in innovation
We stick to the concept of “innovate or die”, build a strong content team system, continuously secure core essential production
factors, and firmly maintain our core competencies in content innovation. Our four platforms currently have 56 variety show production
teams, 22 film and TV drama production teams, and 36 strategic studios under the Xinmang Program, thereby becoming the largest
variety show producer in China. By establishing the content innovation bidding system, innovating in creativity research, development
and production chain or otherwise, we stimulate the teams’ creative power, maintain a keen sense of smell, and rapidly respond to
market changes with innovative contents.
5. Advantages in users
As of the end of 2023, Mango TV had 66.53 million paying users, ranking steadily among the top long video platforms in China.
We stick to the special content strategy and platform positioning of “youth, metropolis and women”, to realize that our clear user base,
fine content products and advertisers are linked and fit perfectly with each other. The overall user image of Mango TV is “vigor, fashion
and quality”, among others, and its percentage of women users is higher than the average level of the industry. Clear user imaging and
platform positioning will enhance our special advantages in realizing the brand value of our platform through multiple channels and in
a variety of ways, and building the membership operation system.
6. Advantages in ecosystem
Leveraging our advantages in proprietary contents, we have built the synergistic and complementary closed loop of Mango new
media ecosystem covering the entire industry chain of media and Internet, where the upstream mainly includes artist agency and variety
show, film and TV drama, and children’s cartoon production business, the mid-stream is responsible for content operation and
distribution through multiple channels provided by the online video platforms, in reliance on our strong content production capabilities
and premium content matrix, and the downstream centers on offline location-based entertainment, parent-child amusement park, and
other derivative operations based on Mango family content IPs, creates a wholly new business model comprising “content + video +
e-commerce” with content as the basis, and realizes monetization of derivatives through multiple online and offline channels.
7. Advantages in licenses
Mango TV is the sole market player in the Internet video industry that holds both IPTV and OTT business licenses, with its smart
large-screen business covering 31 provincial regions in China, which is an important supporting point for us to develop 5G and living
room economy. In reliance on our complete licenses, our video content business covers all terminals, including mobile phone, PAD,
PC, TV, IPTV and OTT. We are the first video media platform that has actually built “one cloud and multiple screens” system in the
industry. As the Internet TV industry enters the high-quality development stage, the licenses held by us will further show our advantages.
8. Advantages in business model
We firmly believe that the content is the king, and have established a sustainable and sound business model. In reliance on our
sound market-oriented operation mechanisms, we have continuously improved the efficiency of business innovation and the risk control
level, maximized the input-output ratio, and become a market player in the online video industry that has made profits for many years.
We have realized effective control over content production costs through accurate user positioning, strong content production
capabilities, and effective cluster of core production factors. In reliance on our industry leading model of monetization through
“membership + advertising + operator + e-commerce” channels, we have developed multiple sources of revenue.
IV. Analysis of main business
1. Overview
The year of 2023 is the first year for the full implementation of the spirit of the 20th National Congress of the CPC, and also the
10th year of the overall implementation of media convergence as a national strategy. During the Reporting Period, we adhered to the
spirit of General Secretary Xi Jinping’s cultural ideology and the instructions in his series important speeches on media convergence
as the fundamental principles and guidelines, addressed the uncertainties of the external environment with the certainties of our own
development, focused on in-depth media convergence, consolidated the advantages of multi-platform coordinated development,
stimulated intrinsic drives for our core business through content innovation, promoted diversified development of the emerging types
of operations on the basis of ecosystem coordination, and took into consideration both short-term goals and medium- and long-term
strategies, made steady and strong progress in high-quality development, and achieved steady improvement of all key operating
indicators. In 2023, our total operating revenue was RMB14.628 billion, an increase of 4.66% year on year (where in the fourth quarter,
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our total operating revenue was RMB4.262 billion, an increase of 21.16% year on year); our net profit attributable to the shareholders
of the List Company was RMB3.556 billion, an increase of 90.73% year on year; and our net profit attributable to the shareholders of
the List Company after deduction of non-recurring gain or loss was RMB1.695 billion, an increase of 5.70% year on year. We made
the 15th list of “Top 30 Cultural Enterprises in China”, which was the fourth time we made the list since we completed the major asset
restructuring in 2018, and further consolidated our position in the “first echelon” of the cultural industry.
1. Hold fast to the communication position, and always fulfill the duties and missions of mainstream media
We always uphold the principle that “media controlled by the Party shall adhere to the leadership of the Party with utter loyalty”,
focus on the duties and missions to “hold up the flag, gather the people, train new talents, promote culture, and showcase the image”,
continuously strengthen the mainstream new media through our high-quality development, and enhance the leadership and
communication powers, and influence of the mainstream public opinion through reform, innovation, convergence and development, to
make positive energy stronger and central theme more magnificent. First, focusing on major thematic communication. Mango TV has
prominently featured “Study Moments” on the first screen of its homepage, with a total of over 6 billion views of the special section
of important reports featuring General Secretary Xi Jinping, and released special features on themes such as themed education for
studying and implementing Xi Jinping thought on socialism with Chinese characteristics for a new era, studying and implementing Xi
Jinping’s cultural ideology, and celebrating the 102 nd anniversary of the founding of the CPC. Second, promoting cultural
internationalization. We have actively implemented the requirement for “strengthening international communications capabilities”
proposed in the Report to the 20th National Congress of the CPC, and continuously explored the ways to tell China’s stories and make
China’s voices heard in the world. “Ride the Wind 2023” attracted wide attention from 600 overseas media outlets, with its program
mode exported to Vietnam. “Divas Hit the Road” was recommended by 36 embassies abroad. Mango TV international App covers
over 195 countries and regions globally, with over 140 million downloads, and has become an important window for promoting Chinese
culture internationally. Third, creating a lot of excellent works. Our central theme documentaries have won the “China News Award”
for six consecutive years. Six works, including “China S3” and “Finding Beyond Time and Space”, were selected as excellent domestic
documentaries by the SARFT in 2023. We have produced many works featuring Hunan, such as “Hunan Tourism Development
Conference”, “Taste of Hunan” and “A Travelogue of Hunan”, to spread Hunan culture and tell stories of Hunan.
2. Build a hub for long video creation and production, and continuously strengthen the ecosystem moat for Mango contents
We persist in the long-termism and futurism, ensure that content innovation holds high ideological banners, deepens cultural roots,
respects market rules, and complies with the laws of new media communication, and vigorously build a talent and innovation hub for
domestic long video content creation and production. With 56 variety show production teams, 22 film and TV drama production teams,
and 36 strategic studios, we have further consolidated our advantages in high-level, innovative and diversified content supply.
According to Enlightent, in 2023, the effective all-network playback volume of Mango TV’s full-length variety shows increased by
31% year on year, and the effective all-network playback volume of its full-length TV dramas and series increased by 46% year on
year, both ranking first in terms of growth rate in the long video industry.
We have further consolidated the leading position of our variety shows in the industry. During the Reporting Period, Mango TV
released over 100 variety shows, leading the industry in new releases, exclusive broadcasts, and innovation rates. Eight of the top ten
most popular variety shows on Douban belong to Mango TV. Our popular variety shows include “Ride the Wind 2023”, “Call Me by
Fire S3”, “Infinity and Beyond 2023”, “Divas Hit the Road”, “Who’s the Murderer S8” and other generation N variety shows, and
“Happy Friends”, “SHErlock”, and “Happy Adults” and other “small and beautiful” novelty variety shows that formed the “Douban 9
Points Club of Mango Variety Shows”. In addition, works such as “Chinese Village Flowers” and “Mom & Daughter” stood out from
over 700 ideas in the “Mango 1% Creative Finals”, laying a solid foundation for future popular variety shows.
We have continuously enhanced the supply of premium films and TV dramas, innovated in the organizational structure and
incentive mechanisms for the film and TV drama production teams, established the drama evaluation and quality control center,
introduced super studios, launched the “Xinmang Program S” and the super partner system for films and TV dramas, focused on the
development of top-tier TV dramas and series, enhanced the supply capacity of high-quality TV dramas and series, and significantly
improved our content quality. During the Reporting Period, Mango TV released 128 TV dramas and series in total, including key films
and TV dramas, and micro and short dramas under the “Damang Program”. “Meet Yourself”, “Fake It Till You Make It” and “The
Forerunner” were selected by the SARFT into the “Selected Chinese TV Dramas and Series 2023”. Mango TV and Douyin have jointly
launched the “Premium Short Drama Support Program”, under which the parties will focus on the joint creation of short dramas, and
explore new opportunities for cooperation in long and short videos. “Changing Wind and Moon” had its premiere on the Hunan Satellite
TV, becoming the first domestic micro and short drama broadcast on a satellite TV station for the first time. In 2024, we will release
over 80 films and TV dramas and 100 micro and short dramas, which will further enhance our ability to supply high-quality TV dramas
and series.
3. Overcome challenges for the core business, and bring the membership business into a new stage of high-quality development
Membership, advertising and operator businesses are important monetization channels for long video contents, and form the “three
pillars” of Mango TV Internet video business. During the Reporting Period, our membership business grew rapidly, and continuously
increased its proportion in the total operating revenue; our advertising business stabilized the fundamentals and continued to improve;
and our operator business continued to maintain steady growth. These segments are structurally complementary to one another, making
our business development more healthy and resilient.
The number of our members reached a new high. As of the end of 2023, Mango TV had 66.53 million active members. In 2023,
our membership revenue was RMB4.315 billion, an increase of 10.23% year on year, where the membership revenue in the fourth
quarter increased by 35.64% year on year. Our membership business is developing at an accelerated pace again, and the growth of
members and input of contents have formed a virtuous cycle and positive feedback loop. During the Reporting Period, Mango TV
focused on both content and channels, attracted and retained users with premium and exclusive contents, actively expanded the high-
quality cross-industry channels; advanced the four themed membership brand season events, namely “Chasing Wind Season”, “Joyful
Season”, “Graduation Season” and “Co-branded Season”, in an orderly manner, and increased the ARPPU of members in a refined
manner; innovated in and upgraded membership entitlements, and offered over 300 kinds of membership benefits. Our member
customized programs set industrial benchmarks, with the average input-output ratio of “Happy Adults”, “Forest Evolution Theory”,
“God Training Camp” and other member customized innovative IPs reaching 286%.
14
Our advertising revenue has rebounded rapidly. In 2023, our advertising revenue was RMB3.532 billion, a decrease of 11.57%
year on year; however, the drop narrowed as compared to the first half of 2023, and the advertising revenue in the fourth quarter
increased by 15.95% year on year, marking that the annual growth has turned from negative to positive. The top-tier IPs, such as “Ride
the Wind 2023” and “Call Me by Fire S3”, stabilized the variety show advertising market, while “Meet Yourself” and “The Love of
Love” set new records in terms of advertising revenue and the number of project partners achieved by our TV dramas and series within
the past three years. Benefiting from the ecosystem advantages of multi-platform convergence and the continuously growing user base,
the platform value of Mango TV in brand marketing was further highlighted. During the Reporting Period, we solicited a number of
top-tier brand customers in Internet platform, liquor, food and other key sectors, and now one third of our customers are new customers.
Our operator business has maintained steady growth. In 2023, our operating revenue from the operator business was RMB2.767
billion, an increase of 10.27% year on year. In the business operation outside Hunan, we leveraged the cooperation with operators,
especially the strategic partnership with China Mobile, improved the online release rate and recommendation rate of large-screen
contents, and achieved full coverage of basic and value-added services. In the business operation in Hunan, we promoted growth of
revenues from the IPTV business through innovative operations, optimization of offline incentive policies, and focus on key areas,
released the “Hunan Smart Education Platform App for TV”, and created a lot of innovative special courses that attracted over 6 million
users. In addition, we launched the innovative “Crowdfunding Plan” based on the large-screen treasure bowl platform, under which
the family sitcom entitled “Happy Family” was broadcast jointly on IPTVs of 16 provinces and cities.
4. Fully leverage the synergy effect, and create a diversified and deeply converged Mango ecosystem
During the Reporting Period, we completed the acquisition of Golden Eagle Cartoon, pursued a unique development path for
Xiaomang E-commerce, and upgraded our “Mango TV + Hunan Satellite TV” double platforms media convergence model to “Mango
TV + Hunan Satellite TV + Golden Eagle Cartoon + Xiaomang E-commerce” four platforms model. On the basis of consolidating
Mango TV Internet video business, the four platforms have fully integrated content creation, production and operation, leveraged the
effects of business synergy and resource integration, built “1+1+1+1+N” Mango ecosystem with richer contents, continuously
improved the monetization chain for our content ecosystem and values, and pursued more diversified business development paths.
The acquisition of Golden Eagle Cartoon, as a top-tier domestic parent-child content platform, was an important step made by us
in enriching our all-media communication ecosystem, which will further consolidate our content moat in the parent-child field, and
produce a comprehensive synergy effect with our existing business in program innovation, marketing resources, venture capital
investment in cartoons, research-based learning parks, derivative products, etc. During the Reporting Period, Golden Eagle Cartoon
focused its efforts on building content barriers for children’s programs and parent-child ecosystem, explored new parent-child
consumption models, focused on content operation, brand marketing, development of derivative products, and offline amusement parks,
etc., and made a net profit of RMB63,473,700, successfully fulfilling the performance commitment for the year 2023. Xiaomang E-
commerce leveraged the premium content IPs and artist resources of Mango ecosystem, focused on core user groups, explored new
commercial models for contents, and maintained the momentum of rapid growth, with GMV exceeding RMB10 billion. The GMV of
our first self-operated fashion brand “No. 1” exceeded RMB270 million, achieving the transition from single products to a brand, and
providing a more commercially valuable growth model for partner brands. “A Journey for No.1”, the first customized variety show
released by Xiaomang received a Douban rating of over 9 points, realized an in-depth convergence of content and e-commerce, and
achieved a win-win situation for the program and product sales. EE-Media fully leveraged its advantages as an artist agency, enhanced
training of new talents, optimized the artist structure, and actively explored the new growth space for artist agency and music copyright
businesses. Happigo fully leveraged the advantages of Mango ecosystem, developed high-quality products on the supply chain, and
created multiple categories of self-owned brands.
5. Promote in-depth convergence of technology and content, and actively explore the application of cutting-edge technologies
We attach great importance to technology research, development and application, fully leverage rich application scenarios, and
actively explore the application of AI and other cutting-edge technologies, and innovation in types of operation. We have released
more than 40 AI products, and widely applied AI technologies in media operation, advertisement placement, member interaction, video
edition, content production, and other business scenarios. In order to increase the recommendation conversion effect, we have released
an AI multimodal retrieval and creation engine, which enables interactive retrieval of massive contents within seconds through vector
engine and dialogue model. In order to reduce costs and increase efficiency, we have used AI-generated short videos in variety shows
such as “Call Me by Fire” and “Run for Time”, produced over 1 million short videos, and significantly reduced the content promotion
costs and platform customer acquisition costs. In order to improve our operational efficiency, we have developed the AIGC HUB
application platform, which integrates AIGC capabilities in text, image and speech modalities such as domain models, AI drawing and
voice generation. We have innovated in business models, cooperated with large model companies to launch AI character dialogue
products, linked AI large anthropomorphic models with popular IPs such as “Young Blood 2” and “The Love of Love”, created AI
character chat scenarios, tried new monetization modes, and increased user adhesion and activity. In addition, we have also explored
the in-depth integration of AI and content, and widely used AIGC audio dramas, AIGC copies, and AIGC posters.
2. Revenues and costs
(1) Components of operating revenue
Overall situation of operating revenue
In RMB
2023 2022
Proportion to Proportion to Y/Y % change
Amount Amount
operating revenue operating revenue
15
Total operating
14,628,016,301.84 100% 13,976,774,034.92 100% 4.66%
revenue
By segment
Mango TV
Internet video 10,614,030,327.62 72.56% 10,417,661,860.99 74.54% 1.88%
business
New media
interactive
entertainment 1,149,941,038.24 7.86% 1,390,868,611.95 9.95% -17.32%
content production
and operation
Content e-
2,822,529,201.38 19.30% 2,135,993,003.68 15.28% 32.14%
commerce
Others 41,515,734.60 0.28% 32,250,558.30 0.23% 28.73%
By product
Mango TV
Internet video 10,614,030,327.62 72.56% 10,417,661,860.99 74.54% 1.88%
business
New media
interactive
entertainment 1,149,941,038.24 7.86% 1,390,868,611.95 9.95% -17.32%
content production
and operation
Content e-
2,822,529,201.38 19.30% 2,135,993,003.68 15.28% 32.14%
commerce
Others 41,515,734.60 0.28% 32,250,558.30 0.23% 28.73%
By region
Hunan 3,558,155,682.72 24.32% 3,361,013,169.27 27.51% 5.87%
Outside Hunan 11,069,860,619.12 75.68% 10,615,760,865.65 72.49% 4.28%
By sales model
Sale 14,628,016,301.84 100.00% 13,976,774,034.92 100.00% 4.66%
(2) Segments, products, regions or sales models representing more than 10% of operating revenue or profit
Applicable N/A
In RMB
Y/Y % change Y/Y % change
Gross Y/Y % change
Operating revenue Operating cost in operating in operating
margin in gross margin
revenue cost
By segment
Mango TV
Internet video 10,614,030,327.62 6,229,223,213.61 41.31% 1.88% 1.52% 0.21%
business
New media
interactive
entertainment 1,149,941,038.24 855,899,278.24 25.57% -17.32% -18.11% 0.71%
content
production
Content e-
2,822,529,201.38 2,682,738,552.41 4.95% 32.14% 34.17% -1.44%
commerce
Others 41,515,734.60 35,145,850.68 15.34% 28.73% 26.86% 1.25%
By product
Mango TV
Internet video 10,614,030,327.62 6,229,223,213.61 41.31% 1.88% 1.52% 0.21%
business
16
New media
interactive
entertainment 1,149,941,038.24 855,899,278.24 25.57% -17.32% -18.11% 0.71%
content
production
Content e-
2,822,529,201.38 2,682,738,552.41 4.95% 32.14% 34.17% -1.44%
commerce
Others 41,515,734.60 35,145,850.68 15.34% 28.73% 26.86% 1.25%
By region
Hunan 3,558,155,682.72 2,383,287,108.23 33.02% 5.87% 8.58% -1.68%
Outside Hunan 11,069,860,619.12 7,419,719,786.71 32.97% 4.28% 5.80% -0.96%
By sales model
Sale 14,628,016,301.84 9,803,006,894.94 32.98% 4.66% 6.46% -1.13%
In case of any adjustment to the statistic scale for main business data, the main business data of the most recent reporting period as
adjusted according to the statistic scale applied at the end of the current reporting period:
Applicable N/A
(3) Whether the Company’s revenue from sale of tangible goods is higher than the revenue from labor service?
Yes No
(4) Performance of material sales contracts and material purchase contracts of the Company as of the end of the Reporting
Period
Applicable N/A
(5) Components of operating cost
Classification of segments and products:
In RMB
2023 2022
Proportion
Proportion Y/Y %
Segment Item to
Amount Amount to operating change
operating
revenue
revenue
Mango TV
Internet video
Internet video 5,795,180,476.82 59.12% 5,771,468,065.50 62.68% 0.41%
business
business
Mango TV
Operator
Internet video 434,042,736.79 4.43% 364,240,806.41 3.96% 19.16%
business
business
New media
interactive
Copyright and
entertainment 692,872,785.79 7.07% 842,065,761.90 9.14% -17.72%
production costs
content
production
New media
interactive Employee
entertainment remuneration 163,026,492.45 1.66% 203,064,774.92 2.21% -19.72%
content and others
production
Content e- Content e-
2,682,738,552.41 27.37% 1,999,535,703.06 21.72% 34.17%
commerce commerce
Others Others 35,145,850.68 0.36% 27,705,011.28 0.30% 26.86%
17
In RMB
2023 2022
Proportion Proportion Y/Y %
Product Item
Amount to operating Amount to operating change
revenue revenue
Mango TV
Internet video
Internet video 5,795,180,476.82 59.12% 5,771,468,065.50 62.68% 0.41%
business
business
Mango TV
Operator
Internet video 434,042,736.79 4.43% 364,240,806.41 3.96% 19.16%
business
business
New media
interactive
Copyright and
entertainment 692,872,785.79 7.07% 842,065,761.90 9.14% -17.72%
production costs
content
production
New media
interactive Employee
entertainment remuneration 163,026,492.45 1.66% 203,064,774.92 2.21% -19.72%
content and others
production
Content e- Content e-
2,682,738,552.41 27.37% 1,999,535,703.06 21.72% 34.17%
commerce commerce
Others Others 35,145,850.68 0.36% 27,705,011.28 0.30% 26.86%
Analysis: None.
(6) Changes in the scope of consolidation during the Reporting Period
Yes No
During the Reporting Period, we acquired Golden Eagle Cartoon through a business combination involving entities under common
control, and deregistered Beijing Happy Mango Culture Media Co., Ltd. See “IX. Changes in Scope of Consolidation” under “Section
X Financial Report” for details.
(7) Material changes or adjustments in respect of business, products or services of the Company during the Reporting Period
Applicable N/A
(8) Major customers and suppliers
Major customers of the Company:
Aggregate sales revenue from top 5 customers (RMB) 4,739,829,701.56
Proportion of aggregate sales revenue from top 5 customers to
32.40%
annual sales revenue
Proportion of aggregate sales revenue from related parties
27.21%
among top 5 customers to annual sales revenue
Particulars of top 5 customers:
Proportion to annual sales
No. Name of customer Sales revenue (RMB)
revenue
1 Customer 1 2,699,571,918.02 18.45%
2 Customer 2 1,279,986,808.00 8.75%
3 Customer 3 262,758,232.01 1.80%
4 Customer 4 262,298,381.58 1.79%
5 Customer 5 235,214,361.95 1.61%
Total -- 4,739,829,701.56 32.40%
Other information of major customers:
18
Applicable N/A
Major suppliers of the Company:
Aggregate purchase amount from top 5 suppliers (RMB) 2,241,153,433.69
Proportion of aggregate purchase amount from top 5 suppliers
22.86%
to annual purchase cost
Proportion of aggregate purchase amount from related parties
12.13%
among top 5 suppliers to annual purchase cost
Particulars of top 5 suppliers:
Proportion to annual purchase
No. Name of supplier Purchase amount (RMB)
cost
1 Supplier 1 1,189,151,288.20 12.13%
2 Supplier 2 291,572,413.80 2.97%
3 Supplier 3 283,018,868.78 2.89%
4 Supplier 4 260,377,358.49 2.66%
5 Supplier 5 217,033,504.42 2.21%
Total -- 2,241,153,433.69 22.86%
Other information of major suppliers:
Applicable N/A.
3. Expenses
In RMB
2023 2022 Y/Y % change Reason of significant change
Primarily due to an increase in channel
Selling expenses 2,260,065,273.97 2,244,824,328.98 0.68%
development expenses
Administrative
612,009,007.33 646,502,018.06 -5.34% Primarily due to a decrease in labor costs
expenses
Financial
-147,667,394.09 -142,444,802.89 3.67% Primarily due to an increase in interest income
expenses
Primarily due to an increase in the labor costs
R&D expenses 278,728,244.78 257,607,242.41 8.20%
of R&D personnel
19
4. R&D expenses
Applicable N/A
Expected effect on the future
Description of major R&D project Purpose Progress Objectives
development of the Company
Mango TV basic service platform
module: the research, development
and building of the business
experimental platform, highly
reliable gateway, Mango coordinated
system and other products have been
completed; audio-visual media
business application innovation
platform: the research, development
and building of the rich media
advertising, Mango digital collection
platform and other products have The project can support the ever-
been completed; VR application expanding demands for content
research platform: the research, To improve the security of platform production and distribution, meet the
development and building of the XR data contents and other information, growing needs of users for the
Use proprietary technologies to build
live streaming platform, VR and enhance R&D efficiency; development of audio-visual
a basic service platform, an
interactive content platform and other provide efficient and powerful tools experience, help Mango TV to
intelligent content production and
products have been completed; for smart content production, refined enhance its image in the industry and
Mango TV smart audio-visual media processing platform, a content
Guangmang cloud production and operation and multi-channel its soft power, and build a media
service platform distribution platform, an application
broadcasting platform: using the distribution, support “4K+5G” high- technology moat. It is the only way to
service platform and other systems,
advanced design concept based on definition intelligent production, reduce costs and improve efficiency
and form a domestic leading smart
the “end-edge-cloud” coordinated explore VR and other cutting-edge in operation and enhance user
audio-visual media service platform.
treatment, the directional research technology scenarios and realize their experience, and is of great
and development of cloud production industrialization. significance for the Company to
and broadcast process and maintain its core competitiveness in
management model have been the future.
completed, which will improve the
production efficiency of ultra HD
video contents; new infrastructure
platform for content production
management: the research,
development and building of the
cloud content review system, media
structural platform and other
products have been completed;
audio-visual media refined operation
support platform: the research,
20
development and building of the
intelligent customer service system,
Mango instant messaging service and
other products have been completed.
Based on the home-made cloud-
native virtual production platform
mainly comprising virtual production
collection system, supercomputing
The project focuses on the
rendering system and lightweight
technology field of “ultra HD video
space data collection system, in
According to the software and algorithms”, and is an important
The Phase I development of virtual combination with cloud-native
hardware configurations for video attempt in the localization of virtual
production based on supercomputing supercomputing virtual production
supercomputing, integrate camera shooting technology,
platform, development and SaaS and PaaS services, to develop a
equipment, cloud real-time rendering supercomputing platform and other
deployment of virtual asset library cloud-native supercomputing-based
Video supercomputing-based virtual engine, spatial positioning data advanced technologies. The project
and related function test report have home-made virtual production SaaS
shooting and production collection and virtual standard will not only reduce the content
been completed; and three patent platform that supports the production
production system with VFX basic production costs of Happy Sunshine,
applications in connection with the of program contents; and based on
production workflow, and build and is an important measure to
project have been submitted, which XR shooting technology, to develop
cloud-native virtual production SaaS develop “culture + technology”, and
are under review. virtual space lighting calibration
service. create fine contents incorporating
algorithms for integrated lighting
mainstream values and cutting-edge
linkage, LED texture detection
video technologies.
algorithms for LED screen display,
and ROI (Region of Interest) ultra
HD video optimization algorithms
for video rendering.
AI technology is an advantage of
Happy Sunshine technology team
To increase the number of daily and the focus of future cutting-edge
The anthropomorphic AI project will
Phase I development: Release active users and members of the technologies. In light of the new
link the new ChatGPT technology
derivative characters of Young Blood platform, expand the boundary of AI reform of the industry and new
with Mango’s specialty contents, and
2, complete the deployment of AI capability, enable platform scenarios impact on user habits brought about
Research and development of based on large-scale drama training,
interactive capability, and link with other than content, build “IP+” by ChatGPT, the project intends to
anthropomorphic AI project create AI characters for popular TV
Mango large-scale AI training camp, ecosystem model, explore AI take the lead in releasing interactive
dramas and series, and assign
to accumulate technologies for Phase response experience on user side, and AI products in the industry, and
personality settings to such
II large-scale development. reserve technologies for product produce positive results in the
characters.
upgrading. production-research integration of AI
technology, user attraction, retention
and conversion, among others.
Particulars of R&D personnel:
2023 2022 Y/Y % change
Number of R&D personnel 694 604 14.90%
21
Proportion of R&D personnel 15.78% 13.62% 2.16%
Education background of R&D personnel
Undergraduates
518 445 16.40%
Masters
111 97 14.43%
Others
65 62 4.84%
Ages of R&D personnel
Below 30
185 180 2.78%
30-40
453 383 18.28%
Others
56 41 36.59%
Amount of R&D expenses and proportion of R&D expenses to operating revenue in the past three years:
2023 2022 2021
Amount of R&D expenses
418,744,155.24 364,132,943.53 429,785,963.31
(RMB)
Proportion of R&D expenses
2.86% 2.61% 2.72%
to operating revenue
Amount of R&D expenses
140,015,910.46 106,525,701.12 97,370,501.74
capitalized (RMB)
Proportion of capitalized
R&D expenses to total R&D 33.44% 29.25% 22.66%
expenses
Proportion of R&D expenses
capitalized to the net profit of 4.03% 5.90% 4.48%
the current period
22
Analysis of the cause and effect of significant change in the composition of R&D personnel:
Applicable N/A
Analysis of the cause of significant change in the proportion of R&D expenses to operating revenue compared with the preceding
year:
Applicable N/A
Analysis of the cause and reasonableness of significant change in the proportion of R&D expenses capitalized:
Applicable N/A
5. Cash flows
In RMB
Item 2023 2022 Y/Y % change
Subtotal of cash provided by
14,518,104,991.76 13,574,285,652.07 6.95%
operating activities
Subtotal of cash used in
13,434,331,735.05 12,952,481,952.63 3.72%
operating activities
Net cash flows from operating
1,083,773,256.71 621,803,699.44 74.30%
activities
Subtotal of cash provided by
7,219,501,306.58 14,218,842,067.23 -49.23%
investment activities
Subtotal of cash used in
6,463,056,173.92 13,561,887,809.91 -52.34%
investment activities
Net cash flows from investment
756,445,132.66 656,954,257.32 15.14%
activities
Subtotal of cash provided by
679,622,361.64 1,923,325,434.53 -64.66%
financing activities
Subtotal of cash used in
997,937,817.51 391,530,893.80 154.88%
financing activities
Net cash flows from financing
-318,315,455.87 1,531,794,540.73 -120.78%
activities
Net increase in cash and cash
1,521,997,270.65 2,811,010,904.25 -45.86%
equivalents
Analysis of the main causes of significant changes in the relevant data:
Applicable N/A
The net cash flow from operating activities increased by 74.30% year on year, primarily due to an increase in receipts from operating
items in the current year.
The net cash flow from investment activities increased by 15.14% year on year, primarily due to the amount of bank wealth management
products redeemed exceeding the amount of bank wealth management products purchased in the current year.
The net cash flow from financing activities decreased by 120.78% year on year, primarily due to a decrease in the discounted notes not
qualified for derecognition, resulting in a decrease in cash flows provided by financing activities from the last year, and an increase in
dividends in the current year, resulting in an increase in cash flows used in financing activities from the last year.
Analysis of the significant difference between net cash flows from operating activities during the Reporting Period and net profit in
current year:
Applicable N/A
Primarily because the deferred tax expenses recognized in the current year did not generate cash flows.
V. Analysis of non-main business
Applicable N/A
In RMB
Proportion to Whether or not
Amount Main source
total profit sustainable
Investment income 73,236,767.58 3.96% Income on bank wealth No
23
management products
Impairment losses on
Impairment loss on assets -100,061,039.58 -5.41% accounts receivable and No
inventories
Income from rights
Non-operating revenue 35,532,003.82 1.92% No
protection actions
Expenses in connection
Non-operating expenses 4,005,884.29 0.22% No
with indemnity
VI. Analysis of assets and liabilities
1. Material changes in the components of assets
In RMB
End of 2023 Beginning of 2023 Reason of
Change significant
Proportion to Proportion to
Amount Amount change
total assets total assets
Cash and bank
11,882,208,257.60 37.81% 10,369,682,100.19 34.82% 2.99%
balances
Accounts
3,496,523,370.15 11.13% 3,239,435,040.40 10.88% 0.25%
receivable
Contract assets 838,691,849.14 2.67% 929,403,936.51 3.12% -0.45%
Inventories 1,717,435,689.33 5.47% 1,608,818,863.16 5.40% 0.07%
Investment
81,084,052.23 0.26% 83,381,033.60 0.28% -0.02%
properties
Long-term
equity 4,123,864.73 0.01% -0.01%
investment
Fixed assets 142,419,568.37 0.45% 173,715,579.21 0.58% -0.13%
Right-of-use
228,587,413.61 0.73% 180,794,786.22 0.61% 0.12%
assets
Primarily due
to the maturity
Short-term of discounted
33,781,325.60 0.11% 1,057,932,476.80 3.55% -3.44%
borrowings notes not
qualified for
derecognition
Contract
1,223,382,815.57 3.89% 1,095,959,210.88 3.68% 0.21%
liabilities
Lease
151,809,003.34 0.48% 138,344,104.72 0.46% 0.02%
liabilities
Analysis of high proportion of overseas assets:
Applicable N/A
2. Assets and liabilities at fair value
Applicable N/A
In RMB0’000
Aggregate Impairment
Gain or Amount
changes loss Amount sold
loss on acquired in
Opening in fair recognized in the Other Closing
Item changes the
balance value in the Reporting changes balance
in fair Reporting
recorded current Period
value Period
in equity period
Financial assets
1. Financial
269,500.00 547,800.00 712,100.00 105,200.00
assets held
24
for trading
(excluding
derivative
financial
assets)
2. Accounts
receivable 4,905.44 64,934.04 69,839.49
financing
Subtotal 274,405.44 547,800.00 712,100.00 64,934.04 175,039.49
Financial
0.00 0.00
liabilities
Other changes:
Other changes of receivables financing are primarily due to changes in discounting, endorsement or acceptance upon maturity of
banker’s acceptance bills.
Whether there’s any material change in the measurement properties of main assets of the Company during the Reporting Period?
Yes No
3. Encumbrances on assets as of the end of the Reporting Period
As of the end of the Reporting Period, the total amount of restricted assets was RMB49,811,900, where the cash and bank balances
included RMB12,942,100 subject to judicial freeze, RMB995,100 of third-party platform deposits, RMB954,700 of other deposits, and
the amount of endorsed or discounted but not matured bills was RMB34,920,000.
VII. Analysis of investments
1. Overall situation
Applicable N/A
Amount of investment in 2023 (RMB) Amount of investment in 2022 (RMB) Y/Y % change
834,795,100.00 2,880,000.00 28,885.94%
2. Major equity investments acquired during the Reporting Period
Applicable N/A
25
In RMB
Investment
Whether or not Date of
Main Method of Amount of Shareholding Source of Term of Status as of the income/ loss in Disclosure
Investee Partner Product type Expected income involved in any disclosure
business investment investment percentage funds investment balance sheet date the Reporting index (if any)
litigation (if any)
Period
Announcement
of Acquisition
of 100%
Shares of
Hunan Hunan Golden
Completed business
Golden Eagle Cartoon
Production combination
Eagle Self-owned July 26, Media Co.,
of contents Acquisition 834,795,100.00 100.00% N/A N/A Equity involving entities 834,795,100.00 63,473,693.23 No
Cartoon funds 2023 Ltd. by Cash
for youth under common
Media and Related-
control
Co., Ltd. party
Transaction
disclosed on
www.cninfo.co
m.cn
Total -- -- 834,795,100.00 -- -- -- -- -- -- 834,795,100.00 63,473,693.23 -- -- --
3. Major non-equity investments that have not yet been completed in the Reporting Period
Applicable N/A
4. Investment in financial assets
(1) Securities investment
Applicable N/A
No such case during the Reporting Period.
(2) Derivative investment
Applicable N/A
No such case during the Reporting Period.
5. Use of offering proceeds
Applicable N/A
26
(1) Description of use of offering proceeds
Applicable N/A
In RMB 0’000
Total
amount of Aggregate Total
Percentage
offering amount of amount of
of offering
proceeds offering offering
Total amount of proceeds Purpose and
Method Total Net Aggregate amount of the proceeds Total amount of proceeds
Year of offering proceeds the whereabouts of
of offering offering offering proceeds purpose of the unused offering that has
offering used in the purpose of unused offering
offering proceeds proceeds already used which was purpose proceeds remained
Reporting Period which has proceeds
changed in of which unused for
been
the has been more than
changed
Reporting changed two years
Period
Deposited in the
dedicated account
of offering
proceeds and
used for the
purchase of cash
Private
management
2019 share 200,000 198,270.07 22,450 130,669.45 0 0 0.00% 67,600.62 67,600.62
products;
offering
wherein,
RMB368,805,500
has been used to
permanently
replenish the
working capital
Deposited in the
Share dedicated account
offering of offering
2021 to 450,000 448,579.21 116,615.39 297,340.12 0 0 0.00% 151,239.09 proceeds, and 151,239.09
specific purchase cash
persons management
products
Total -- 650,000 646,849.28 139,065.39 428,009.57 0 0 0.00% 218,839.71 -- 218,839.71
Description of use of offering proceeds
During the Reporting Period, the total amount of offering proceeds used by us was RMB1,390,653,900. As of December 31, 2023, the aggregate amount of offering proceeds used by us was
RMB4,280,095,700, and RMB390,599,900 (including interest) was used to permanently replenish the working capital. The balance of the dedicated account of offering proceeds was
RMB2,090,065,200, including RMB1,797,797,200 of principal and RMB292,268,000 of interest income, of which, RMB224,065,200 was deposited in the dedicated account of offering
proceeds, and RMB1,866,000,000 of idle offering proceeds was used to purchase cash management products.
27
(2) Committed fund-raising investment projects
Applicable □N/A
In RMB0’000
Whether
Aggregate
the Progress of
amount
project Total Amount investment Income Aggregate Whether there’s
Committed Total already Date that the Whether the
has investment invested in as of the earned in income as of any significant
investment project committed invested as project is project has
been amount as the end of the the the end of the change in the
and use of over- investment of the end ready for its produced the
changed adjusted Reporting Reporting Reporting Reporting feasibility of
raised funds amount of the intended use desired result
or (1) Period Period (3) Period Period the project
Reporting
partially =(2)/(1)
Period (2)
changed
Committed investment project
Mango TV
copyright pool No 148,674 148,674 22,450 117,992 79.36% -4,168.57 24,291.72 N/A No
expansion project
Mango TV cloud
storage and multi-
No 49,558 49,558 12,677.45 25.58%1 2 N/A No
screen broadcast
platform project
Content resource
pool expansion No 398,587.78 398,587.78 107,899.02 283,417.38 71.11% 111,095.48 289,816.29 Yes No
project
Mango TV smart
audio & video 3
No 49,991.43 49,991.43 8,716.37 13,922.74 27.85% N/A No
media service
platform project
Subtotal -- 646,811.21 646,811.21 139,065.39 428,009.57 -- -- 106,926.91 314,108.01 -- --
Use of over-raised funds
None
Total -- 646,811.21 646,811.21 139,065.39 428,009.57 -- -- 106,926.91 314,108.01 -- --
Explain the Mango TV cloud storage and multi-screen broadcast platform project: The project was planned in 2017 and implemented in 2019 after receipt of the relevant offering
situation and proceeds. However, within these two years, the technical environment changed greatly, and the technical requirements also changed. Therefore, after receipt of the relevant
reason for failure offering proceeds, we adjusted the fund use plan, resulting in a significant deviation of the fund use progress from the fund use plan originally disclosed. Pursuant to the
to achieve the Guide on Operational Compliance for Companies Listed on the ChiNext Board of the Shenzhen Stock Exchange, we proposed to adjust the fund use plan in respect of
planned progress the cloud storage and multi-screen broadcast platform project, by extending the fund use period to 2021. The fund use plan in respect of Mango TV cloud storage and
and desired result multi-screen broadcast platform project was adjusted pursuant to the Proposal for Adjusting the Fund Use Plan in Respect of Certain Fund-raising Investment Project
by item (including adopted at the 29th meeting of the 3rd Board of Directors of the Company on April 23, 2020, and further adjusted pursuant to the Proposal for Adjusting the Fund Use Plan
the reason for in Respect of Certain Fund-raising Investment Project adopted at the 35th meeting of the 3rd Board of Directors on January 26, 2021.
choosing “N/A” Mango TV smart audio & video media service platform project: The planning of the project was completed in 2020, the fundraising of the project was completed in 2021,
for “Whether the the project was officially implemented in 2022, and the construction of the project is planned to be completed in 2023. During the implementation of the project, certain
project has changes have taken place in both the external market and the technical environment: On the one hand, due to the impact of travel conditions in 2022, there was a certain
produced the lag in business negotiation, contract signing and other procedures required for the procurement of software and hardware in this project; meanwhile, the frequency of
28
desired result”) offline communication and field follow-up projects of the R&D team has decreased, which, to some extent, has affected the progress of project construction. On the other
hand, in the background of reducing costs and increasing efficiency, Mango TV has suspended the development of heavy-asset projects after multiple reviews of project
implementation and R&D focuses; it has prioritized the development of light-asset projects, mainly with human resources and a small quantity of software and hardware.
With the transfer and adjustment of R&D resources and strategies, the overall implementation progress of the project has certain changes. According to the evaluation, it
is expected that the project needs to be postponed for one year on the basis of the original project construction schedule; to be specific, all construction contents under the
project plan will be completed by the end of 2024. The Company held the 15th meeting of the 4th Board of Directors of the Company on April 20, 2023, reviewing and
adopting the Proposal for Adjusting the Fund Use Plan in Respect of Fund Raised for Mango TV Smart Audio & Video Media Service Platform Project, to adjust the fund
use plan of the Mango TV smart audio & video media service platform project. The Company’s independent directors and the Board of Supervisors expressed their
consent to the above proposal, and the sponsor issued a verification opinion. Due to the impact of the operational strategy of cost reduction and efficiency enhancement
and supply of hardware and software resources in the market, in order to adapt to the construction progress of the smart audio-visual project, the Company held the 20th
meeting of the 4th Board of Directors and the 18th meeting of the 4th Board of Supervisors of the Company on April 18, 2024, reviewing and adopting the Proposal for
Adjusting the Fund Use Plan in Respect of Fund Raised for Mango TV Smart Audio & Video Media Service Platform Project, to adjust the fund use plan of the Mango
TV smart audio & video media service platform project, and extend the construction period of the project to December 31, 2025. A special meeting of independent
directors of the Company reviewed and adopted the above proposal, and the sponsor issued a verification opinion.
Content resource pool expansion project: The Company held the 18th meeting of the 4th Board of Directors on August 17, 2023, reviewing and adopting the Proposal on
Adjusting the Use Plan of Funds Raised by the Content Resource Pool Expansion Project, to adjust the fund use plan of the content resource pool expansion project, and
extend the project construction period to December 31, 2025. The Company’s independent directors and the Board of Supervisors expressed their consent to the above
proposal. The actual use of funds raised by the project is slower than the planned. It is mainly because under the impact of the overall development trend of the industry,
the Company deeply cultivated the quality of contents, pursued high-quality development, and made content production more cautious than planned. Besides, the
Company added a new bill acceptance method for content payment, which also delayed the actual payment of raised funds in the project to a certain extent.
Reason of
significant change
None
in the feasibility of
the project
Amount and use of
over-raised funds
N/A
and progress of
use thereof
Change in the
place of the fund-
N/A
raising investment
project
Adjustment of the Applicable
method of
implementation of
the fund-raising
investment project Occurred in previous years
29
Mango TV copyright pool expansion project: As of December 31, 2020, we purchased and released on Hunan TV 5 key TV series as scheduled. The progress of investment
and development meets expectations. The amount of actual investment being lower than the planned amount of investment was primarily due to changes in industry
policies, as a result of which the prices for content copyright have returned to the reasonable level, so the price for TV series per part actually paid by us was lower than
the estimated amount. On November 28, 2021, the Company held the 7th meeting of the 4th Board of Directors, considering and approving the Proposal for Adjusting the
Method of Implementation and Fund Use Plan in Respect of Certain Fund-raising Investment Project, pursuant to which the method of implementation and fund use plan
in respect of the Mango TV copyright pool expansion project were adjusted. The Company’s independent directors and Board of Supervisors expressed their consent to
the above proposal, and the independent financial advisor issued a verification opinion. On December 21, 2021, the above proposal was reviewed and approved at the
Company’s 2nd extraordinary general meeting of shareholders in 2021. The remaining offering proceeds were used to purchase exclusive Internet copyright of teleplays.
On April 18, 2024, the 20th meeting of the 4th Board of Directors and the 18th meeting of the 4th Board of Supervisors of the Company reviewed and adopted the Proposal
on Adjusting the Implementation Method and Fund Use Plan of Mango TV Copyright Pool Expansion Project. Due to commercial negotiations, scheduling planning and
other reasons, the films and TV dramas that the Company intended to purchase were subject to scheduling adjustment, repertoire change, etc. According to the actual
implementation of the project, the Company adjusted the implementation method and fund use plan of the Mango TV copyright pool expansion project, adjusted part of
the films and TV dramas to be purchased, and extended the project construction period to December 31, 2026. A special meeting of the Company’s independent directors
reviewed and adopted the above proposal, and the sponsor issued the verification opinion. The adjustment matters still need to be submitted to the Company’s general
meeting for review and approval.
Content resource pool expansion project: On April 18, 2024, the 20th meeting of the 4th Board of Directors and the 18th meeting of the 4th Board of Supervisors of the
Company reviewed and adopted the Proposal on Adjusting the Implementation Method of the Content Resource Pool Expansion Project. Due to commercial negotiations,
scheduling planning and other reasons, the films and TV dramas that the Company intended to purchase were subject to rescheduling, repertoires changes, etc. According
to the actual implementation of the project, the Company adjusted the implementation method of the content resource pool expansion project, and continued to use the
balance of the raised funds of Sub-project 1 “Grade-S Film and TV Drama Copyright Procurement Project” for Sub-project 2, and adjusted the implementation method
of Sub-project 2 “Grade-A Film and TV Drama Copyright Self-production (including Customization) and Procurement Project” into “Grade-S / Grade-A Film and TV
Drama Copyright Self-production (including Customization) and Procurement Project”. A special meeting of the Company’s independent directors reviewed and adopted
the above proposal, and the sponsor issued a verification opinion. The adjustment matters still shall be submitted to the Company's general meeting for review and
approval.
Applicable
On August 25, 2020, the 31th meeting of the 3rd Board of Directors considered and adopted the Proposal Regarding Payment by the Wholly-owned Subsidiary of Funds
Invested in the Fund-Raising Investment Project with Banker’s Acceptance Bills and Replacement of the Same with the Offering Proceeds, approving that Happy
Sunshine, a wholly-owned subsidiary of the Company, may use banker’s acceptance bills as the case may be during project investment with the fund raised, and
replacement of the same with the offering proceeds by transferring the amount actually paid from the special account of offering proceeds to the account of owned funds
of the Company. The independent directors and the Board of Supervisors of the Company expressed their consent to the above proposal, and the independent financial
Funds pre-invested advisor issued a verification opinion.
in the investment On September 23, 2021, the 5th meeting of the 4th Board of Directors considered and adopted the Proposal for Replacing the Self-raised Funds Pre-invested in the Fund-
project and Raising Investment Project and Funds Used to Pay Part of the Offering Costs with the Offering Proceeds, approving the replacement of the funds pre-invested in the
replacement investment project in the amount of RMB703,945,553.67 and self-raised funds used to pay part of the offering costs in the amount of RMB475,471.70 (tax exclusive)
thereof with the offering proceeds. The independent directors and the Board of Supervisors of the Company approved such proposal, and the sponsor (CICC) issued a verification
opinion. The Replacement of raised funds pre-invested in the fund-raising investment project was completed as of December 31, 2021.
On September 23, 2021, the 5th meeting of the 4th Board of Directors considered and adopted the Proposal Regarding Payment by the Wholly-owned Subsidiary of Funds
Invested in the Fund-Raising Investment Project with Banker’s Acceptance Bills and Replacement of the Same with the Offering Proceeds, approving the payment by
Happy Sunshine, our wholly-owned subsidiary, of amounts in connection with the fund-raising investment project with banker’s acceptance bills during the period of
fund-raising for such investment project through share offering to specific persons in 2020, and replacement of the same with the offering proceeds by transferring the
amount actually paid from the dedicated account of offering proceeds to the account of owned funds of the Company. The independent directors and the Board of
Supervisors of the Company approved such proposal, and the sponsor issued a verification opinion.
On April 20, 2023, the 15th meeting of the 4th Board of Directors of the Company reviewed and adopted the Proposal Regarding Payment with Commercial Acceptance
30
Bills or Otherwise and Replacement of the Same with the Offering Proceeds, approving the payment by Happy Sunshine, our wholly-owned subsidiary, of amounts in
connection with the fund-raising investment project with commercial acceptance bills (including issuance and endorsement of banker’s acceptance bills and commercial
acceptance bills), letters of credit, cloud certificates or otherwise, and replacement of the same with the offering proceeds by transferring the amount actually paid from
the dedicated account of offering proceeds to the account of owned funds of the Company. The independent directors and the Board of Supervisors of the Company
expressed their consent to, and the sponsor and independent financial advisor issued verification opinions on, the proposal referred to above.
Temporary
replenishment of
working capital N/A
with the unused
offering proceeds
Amount of unused
offering proceeds Applicable
and reason thereof
Mango TV cloud storage and multi-screen broadcast platform project: The project was planned in 2017 and implemented from 2019 when the supporting funds were
raised. The construction of the project was basically completed in 2021, and the project has reached the expected usable state as planned. On April 21, 2022, Mango
Excellent Media held the 8th meeting of the 4th Board of Directors, reviewing and adopting the Proposal on the Closing of Mango TV Cloud Storage and Multi-screen
Broadcast Platform Project and Permanent Supplementation of Working Capital through with Remaining Raised Funds. The independent directors and the Board of
Supervisors expressed their independent consent. On May 19, 2022, the Company held the 2021 annual general meeting of shareholders, reviewing and adopting the
proposal referred to above. As of December 31, 2022, the special fund-raising account of the Mango TV cloud storage and multi-screen broadcast platform project has
been canceled, and the remaining raised funds of RMB390,599,900 (including interest) has been transferred out to permanently supplementing the working capital. The
reason for the balance is that the fundraising plan of the project was mainly based on investments in hardware platforms, mainly including the procurement of node
servers, switches, storage servers and other equipment. During the project construction, cloud computing technology developed rapidly, and the Company also actively
grasped the opportunity brought about by the technological innovation by purchasing commercial CDNs and cloud resources to replace the original hardware procurement
plan, which, without affecting the implementation of the project, effectively reduced the project cost and enhanced the resource utilization efficiency of the Company.
Besides, the Company has strengthened its independent innovation capabilities, increased expenses for personnel, increased self-research efforts, insisted on
nationalization and self-development, replaced procurement with self-research, increase the number of R&D team members from 287 to 558, and had 70 patents from
the project. For this project, in addition to the investment with raised funds, the Company also spent around RMB164,599,300 with its own funds in R&D personnel,
commercial CDNs, cloud resources, etc.
Purpose and
whereabouts of As of the end of the Reporting Period, we used RMB1,866,000,000 of unused offering proceeds to purchase cash management products, and deposited the balance of the
unused offering unused offering proceeds in the dedicated account of offering proceeds.
proceeds
Problems or other
matters existing in
the use and None
disclosure of
offering proceeds
Note: 1. The project has been completed. 2. The project aims at fully improving users’ experience of watching across the platform, no economic benefits will be yielded directly, so it is impossible
to calculate the benefits of such project separately. 3. The project aims at improving overall platform-level solutions in ultra HD video, interactive video and re-consumable video in the future,
accelerating integration of Mango TV in aspects of resources, technology, services, business and flow, and no economic benefits will be yielded directly, so it is impossible to calculate the benefits
of such project separately.
31
Mango Excellent Media Co., Ltd. Annual Report 2023
(3) Changes in the fund-raising investment projects
□Applicable N/A
There has been no change in the fund-raising investment projects during the Reporting Period.
VIII. Sale of material assets and equities
1. Sale of material assets
Applicable N/A
No material asset has been sold during the Reporting Period.
2. Sale of material equities
Applicable N/A
IX. Analysis of major subsidiaries and associates
Applicable N/A
Major subsidiaries and associates representing more than 10% of the net profit of the Company:
In RMB0’000
Company Type of Main Registered Operating Operating
Total assets Net assets Net profit
name company business capital revenue profit
Internet
video
business,
operator
Happy
Subsidiary business 24,247.00 2,952,884.03 2,019,896.78 1,167,991.37 199,154.49 362,291.48
Sunshine
and
content
operation
business
Xiaomang
Content e-
E- Subsidiary 7,500.00 10,781.43 -45,394.15 102,097.05 -25,125.61 -25,117.77
commerce
commerce
Golden Production
Eagle Subsidiary of contents 5,969.33 39,185.59 22,767.09 25,134.78 5,398.53 6,347.37
Cartoon for youth
Media
Happigo Subsidiary 40,100.00 87,759.89 53,046.57 181,214.57 -4,037.44 -3,416.94
retail
Artist
agency
business,
program,
film and
EE-Media Subsidiary TV drama 9,000.00 84,576.45 57,719.32 38,011.94 4,098.12 4,106.94
production
business
and
copyright
business
Subsidiaries acquired or disposed of during the Reporting Period:
Applicable N/A
Company name Method of acquisition or disposal of Effect on the production, operation and results of the Company
32
Mango Excellent Media Co., Ltd. Annual Report 2023
subsidiary during the Reporting taken as a whole
Period
Xiaomang E-commerce originally was a wholly-owned subsidiary
of Happy Sunshine (in the data of major subsidiaries set out above,
the data of Happy Sunshine contain the data of Xiaomang E-
Xiaomang E-commerce Internal transfer without consideration commerce between January and June 2023), and was transferred to
the Company in July 2023 without consideration. This transaction
does not have a material effect on the overall production, operation
and results of the Company.
Business combination involving The effect on the net profit of the Listed Company was
Golden Eagle Cartoon
entities under common control RMB63,473,700.
Particulars of major subsidiaries and associates:
X. Structured entities controlled by the Company
Applicable N/A
XI. Prospects for future development of the Company
1. Prospects for future development
The year of 2024 is a critical year for achieving the goals and tasks set forth in the “14th Five-Year Plan”, and also a year for us to
tackle thorny problems and accelerate the in-depth media convergence and development. The vast journey knows no bounds, setting
sail with faith in the wind. We will always adhere to the guidance of Xi Jinping’s cultural ideology, and the important instruction made
by General Secretary Xi Jinping during his inspection of the Malanshan Video Cultural and Creative Park that “the convergence of
cultural and technology has great prospects”, firmly focus on “culture + technology” as the key for the future, accurately identify
changes, adapt scientifically, and seek changes proactively. In the new journey of building a mainstream new media group with strong
leadership, communication and competitive powers, we will strive to provide “Mango answer” to the high-quality media convergence
and development.
(1) Strictly fulfill the missions and duties of a Party-controlled media and state-owned enterprise. We will always uphold the
principle that “media controlled by the Party shall adhere to the leadership of the Party with utter loyalty”, adhere to the correct political
direction, direction of guidance of public opinion and orientation of values, and strengthen the ideological front. Oriented on the 75th
anniversary of the founding of New China, and the annual theme of “bright journey of Chinese-style modernization”, we will innovate
in mainstream communication, build high-quality communication and public opinion positions, and create a number of fine programs,
to deeply implant the mainstream values in the hearts of the people. We will implement the plan to double the number of users of
Mango TV International APP, increase copyright exports, continue to promote the internationalization of Mango’s variety show model,
and enhance the overseas influence of Mango contents.
(2) Continue to consolidate the advantages of media convergence and development. After a decade of development, media
convergence has entered a new stage and a new journey. We will follow up the instructions contained in the important speeches of
General Secretary Xi Jinping on media convergence, on the basis of the original double platforms, focus more on the strategic synergy
and resource intensification in the convergence of four platforms, break down the barriers among new media and between new media
and traditional media, ensure that the convergence brings about opportunities, values and benefits, and achieve new competitive
advantages for high-quality media convergence and development. We will train a group of artists with potentials, promote in-depth
convergence of artist agency and content business on the four platforms, and form a virtuous cycle.
(3) Work harder and firmly defend the leading position in content innovation. We stick to the people-centered philosophy in
content innovation, uphold cultural confidence, make innovations on the basis of what has worked in the past, refrain from relying on
past experiences and paths, anchor fast to super-hit products, strive to maintain the absolute lead through ongoing innovations,
continuously strengthen the core advantages in long video contents, promote the improvement of both “quality” and “quantity”, and
firmly defend the absolute leading position of “Mango products” in content innovation. We will consolidate our advantages in the field
of variety show, strengthen the combination of content with AI and other new technologies, make breakthroughs in the new vertical
contents, and ensure that the proportion of innovative programs is not less than 40%. We will increase investments in film and TV
drama business, focus on the development of top-tier TV dramas and series, enhance the supply capability of premium TV dramas and
series, and continue to seek new opportunities in the fields of other contents, such as micro and short dramas, and cartoons for children.
(4) Make plans before taking actions, and promote the steady growth of the core business in an all-round way. General Secretary
Xi Jinping pointed out at the Central Economic Work Conference at the end of 2023 that “high-quality development is of paramount
importance in the new era”. In the new journey, we will continuously enhance incentives to innovate and develop, seize opportunities,
forge ahead bravely, and unswervingly promote the high-quality development of our core business. Leveraging our rich content
resources, we will improve the efficiency of membership operations, develop high-quality channel users, and achieve rapid user growth
and steady increase in ARPPU; integrate advertising marketing resources of the four platforms, adopt differential marketing strategies,
target budgets of core customers, seize additional budgets from the blue ocean and industry segments; rely on strategic cooperation,
steadily improve the online release rate and duration of watch time of operator’s large screen contents; and expand content monetization
chain through content e-commerce, offline concerts, on-site research-based learning, artist agency or otherwise.
(5) Walk faster and accelerate the upgrading of emerging businesses. Golden Eagle Cartoon and Xiaomang E-commerce, as
important components of our ecosystem, will be fully integrated with the main platform Mango TV in content creation and operations,
33
Mango Excellent Media Co., Ltd. Annual Report 2023
which will continuously improve our content monetization chain with stronger ecosystem enabling. As a top-tier domestic parent-child
content platform, Golden Eagle Cartoon will comprehensively upgrade the Maiji brand, deploy offline locations, and promote the faster
and steadier growth of the “content + research-based learning + offline + derivative” industry chain. Xiaomang E-commerce will
strengthen platform building and operation, focus on core users, efficiently and differentially link artists, contents, products and brands,
fully integrate the production advantages and artist resources of Mango ecosystem, and build distinctive “super live steaming rooms”.
(6) Driven by technology, focus on the development of new quality productive forces in the cultural field. Development of new
quality productive forces in the cultural field requires a dialectical unity of high-quality creativity and advanced technology. Leveraging
our advantages in content creativity and values-based guidance, we will explore effective mechanisms for the convergence of culture
and technology, and promote the shift of the technical team from a “supporting mindset” to a “leading mindset”, to become “creative
engineers” who solve content demands and lead content trends. In reliance on the “Mango large model”, we will effectively incorporate
“culture + technology” throughout the entire chain of creativity, planning, execution, data analysis, commercialization, among others,
give full play to the role of new quality productive forces in innovation in business models, enhancing user experience, and improving
quality and efficiency, and create more growth points in the cultural industry.
(7) Make steady progress, and continuously consolidate the foundation of high-quality development and governance. We will
fully implement all measures set forth in the three-year action plan to improve the quality of listed companies and the action plan to
improve quality and returns of listed companies, and pursue high-quality development through standardized corporate governance;
continuously improve our governance system in accordance with the current regulatory policies, taking into account our actual
situations; strengthen the primary responsibility of the “key few”, enhance the internal driving forces for corporate governance;
establish the special meeting system of independent directors, and guarantee the performance of duties by the independent directors;
broaden the channels for investors’ participation in corporate governance, facilitate the participation by all kinds of investors in major
decision-making, continuously improve the return on investment mechanisms; strengthen ESG governance, and use ESG as an
important means to pursue high-quality corporate development.
(8) Vigorously train the new generation of young leading talents. “People” are the key to the development of new quality
productive forces, so we must make good use of talents as the “primary resources”. We will attach greater importance to team building
and exploitation of young talents, provide an infinite stage for daring and innovative Mango people; explore and establish incentive
mechanisms in line with the market competition rules, create conditions and environment for the growth of new technical talents;
advance the “Young Talent Program” with high quality; create a more enthusiastic, more free cultural atmosphere, to enable more post-
95s and post-00s to stand up, step forward and rise up, and inject endless vitality for the building of a mainstream new media group.
2. Potential risks and countermeasures
(1) Risks of impact of economic cycles. The advertising budget of business customers and consumption preference of end users
of our Internet video business are closely related to the macroeconomic cycles. In recent years, China’s economy has maintained
medium-to-high speed of development, and Internet media industry has realized rapid growth. However, given the economic cycles,
our business development may still be affected to a certain extent. To this end, we will fully make foresight and planning and
continuously consolidate our core competitiveness in terms of content, products, talents and technologies to effectively cope with the
impact of economic cycles.
(2) Risk of changes in industrial policies. We pertain to the cultural and art industry. The market players shall conduct relevant
business in strict accordance with the industrial regulatory policies and shall obtain broadcast licenses before releasing the films, TV
dramas, variety shows. Any change in industrial regulatory policies will bring uncertainties to our content production and broadcast
schedule. As a Party media and state-owned enterprise, we have head start advantages in policy research, and will adhere to the correct
political direction, direction of guidance of public opinion and direction of values, and create content in strict compliance with
requirements of industrial policies.
(3) Risks of market competition. The Internet long video industry witnesses fundamental changes in operational thinking and
underlying logics and enters a new stage of rational development in terms of industry competition. Various major video platforms are
further strengthening capabilities of proprietary content production, improving operation efficiency and enhancing profitability.
Changes in industrial competitive situation may have adverse impact on our market shares and profitability. As a state-owned long
video platform, we will continue to pursue the values guiding role of media and innovation in proprietary content and consolidate
development advantages with content advantages.
(4) Risk of business qualifications. Our certain businesses require and maintain special business qualifications. If we are unable
to promptly renew or obtain new business qualifications upon expiration of the relevant existing business qualifications, our business
development may be adversely affected. We will enhance business qualification management, work out a scientific plan for applying
for business qualifications, increase communications with the competent business qualifications authorities to promptly renew business
qualifications upon expiration thereof.
(5) Risks of return on investment. The broadcast effect of audiovisual content including films, TV dramas and variety shows is
highly uncertain because it is affected by several factors such as program quality, user preference and public opinion environment. The
production of audiovisual content and the procurement of copyright have the inherent characteristics of huge amount of single
investment, long period of return on investment and non-predictability of market reaction, among others, so the return on investment
is greatly uncertain. As a result, we have firmly controlled content production elements in the whole process, established a
comprehensive appraisal system to focus on the content input-output ratio and minimize investment risks.
(6) Risk of technology upgrading. Along with the maturity and application of metaverse, AIGC and other technologies, new
business patterns and business models will bring wholly new cultural and entertainment experience to users. If we fail to keep with the
trend of technology upgrading, the commercial remodeling brought by technology upgrading may have an adverse effect on our
operation. We have established the innovation research institute to enhance researches on new technologies, new models and future
trends of the industry, make judgments and arrangements in advance, and grasp development opportunities brought by technology
upgrading.
(7) Risk of outflow of talents. The new media business, film and TV drama production, and artist agency business conducted by
us have high requirements for the professional levels of practitioners, so outflow of core personnel could affect the conduct of our
business to a certain degree. We have established an open and innovative incentive mechanism, a unique self-motivation mechanism
34
Mango Excellent Media Co., Ltd. Annual Report 2023
and a content ecosystem suitable for creative talents to release their potential, so as to arouse the enthusiasm and creativity of core
personnel while retaining them.
(8) Risk of infringement on intellectual property rights. Our main business involves the use of copyright of audiovisual programs,
so the purchased copyright may have defects and infringe on the interests of legal right holders. Meanwhile, there exist infringements
on copyright of the programs to which we have legal rights and interests. Therefore, we have established a copyright procurement
management system, regulated the procurement process, conducted strict examination of copyright supporting documents, and
specified relevant rights and obligations as well as liability for breach of contract; and intensified efforts to safeguard our intellectual
property rights against copyright infringements.
XII. Investigation, research, communication, interview and other activities during the
Reporting Period
Applicable N/A
Particulars of
Main topic of the
Method of discussion and investigation
Date Place Type of guests Guests
communication information and research
provided activity
available at
Refer to the Refer to our
Record of Record of
Investor Investor
Relations Relations
Communication Institutional Our business
April 25, 2023 Teleconference Activities of Activities
by telephone investors situations
Mango (2023-001)
Excellent disclosed on
Media Co., Ltd. www.cninfo.co
(2023-001) m.cn
Refer to the Refer to the
Record of Record of
Investor Investor
Relations Relations
Online Our business
May 12, 2023 Web meeting Others Activities of Activities of
communication situations
Mango Mango
Excellent Excellent
Media Co., Ltd. Media Co., Ltd.
(2023-002) (2023-002)
Refer to the Refer to the
Record of Record of
Investor Investor
Relations Relations
August 18, Communication Institutional Our business
Teleconference Activities of Activities of
2023 by telephone investors situations
Mango Mango
Excellent Excellent
Media Co., Ltd. Media Co., Ltd.
(2023-003) (2023-003)
XIII. Implementation of the action plan to improve the quality and returns
Whether the Company has disclosed its action plan to improve the quality and returns?
Yes No
In order to implement the guiding ideology of “vigorously improving the quality and investment value of listed companies, and
taking more effective measures to stabilize the market and enhance confidence” proposed by an Executive Meeting of the State Council,
to safeguard the interests of all shareholders, enhance investor confidence, and promote high-quality development, based on its
development strategies, operating conditions, and financial status, the Company formulated the “Improving Both Quality and Returns”
action plan. The progress of the implementation of the “Improving Both Quality and Returns” action plan by the Company is detailed
in the Progress Announcement on the ‘Improving Both Quality and Returns’ Action Plan disclosed by the Company on the same day
on www.cninfo.com.cn.
35
Mango Excellent Media Co., Ltd. Annual Report 2023
Section IV Corporate Governance
I. Overview of our corporate governance
During the Reporting Period, we have continuously improved our corporate governance structure, internal management and
control policies, promoted compliant operations and raised the governance level in strict accordance with the requirements of the
Company Law, the Securities Law, the Code of Corporate Governance for Listed Companies, the Rules Governing the Listing of
Stocks on the ChiNext Board of the Shenzhen Stock Exchange, the Guide on Self-regulatory Supervision for Companies Listed on the
Shenzhen Stock Exchange No. 2 – Compliant Operations of Listed Companies on the ChiNext Board, and other applicable laws,
regulations and normative documents. As of the end of the Reporting Period, our corporate governance complies with the applicable
laws, administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies.
1. Shareholders and the general meeting of shareholders
We convened and held general meetings of shareholders in strict accordance with our Articles of Association and the Rules of
Procedure of the General Meeting of Shareholders and treated all shareholders fairly. We permitted investors to elect to vote in person
or on line at our shareholders’ meetings, so as to enable minority investors to fully exercise their voting rights. In considering material
matters that affect the interests of minority investors, the votes cast by them were counted separately and disclosed on the relevant
announcements on the resolutions of our shareholders’ meeting.
2. Relationship with the controlling shareholder
Our controlling shareholder exercised its rights as a contributor to the Company in accordance with law and did not directly or
indirectly interfere with the decision-making and business activities of the Company without the authorization of the general meeting
of shareholders. We conduct business and operate independently, and are independent of our controlling shareholder in business,
personnel, assets, organization and finance.
3. Directors and the Board of Directors
Our Board of Directors has 9 directors, including 3 independent directors. The number of members and composition of our Board
of Directors comply with the requirements of the applicable laws and regulations and our Articles of Association. The procedures for
convening and holding the meetings of the Board of Directors, voting procedures and resolutions comply with the relevant provisions
of the laws, regulations, Articles of Association and the Rules of Procedure of the Board of Directors. All directors exercise their
functions and perform their duties and obligations with good faith and diligently and in accordance with the provisions of the Guide
on Self-regulatory Supervision for Companies Listed on the Shenzhen Stock Exchange No. 2 – Compliant Operations of Listed
Companies on the ChiNext Board.
4. Supervisors and the Board of Supervisors
The Board of Supervisors of the Company consists of 3 supervisors, including 1 employee supervisor. The number of members
and composition of the Board of Supervisors are in compliance with the requirements of relevant laws and regulations. During the
Reporting Period, our supervisors seriously performed their duties, and actively supervised our material matters, related-party
transactions, insiders, internal controls and financial condition and performance of duties by our directors and executives in compliance
with the applicable laws and regulations, pursuant to the Rules of Procedure of the Board of Supervisors.
5. Establishment and implementation of internal audit policy
Our Board of Directors has set up the Audit Committee, responsible for communications, supervision, meeting organization and
examinations in respect of internal and external audits. The Audit Department under the Audit Committee is responsible for handling
day-to-day affairs, and examination and supervision of the establishment and implementation of internal controls, truthfulness and
completeness of financial information of the Company.
6. Performance appraisal and incentive and restraint mechanisms
Our Board of Directors has set up the Compensation and Appraisal Committee, responsible for the establishment of compensation
policies, determination of compensation plans, and performance appraisal of executives. We have established scientific performance
appraisal standards and procedures for executives.
7. Stakeholders
We fully respect the legitimate rights and interests of stakeholders, and strive to coordinate and balance the interests of
shareholders, employees, partners, the society and other stakeholders, and jointly promote our high-quality development, the details of
which are shown in the 2023 ESG Report and Social Responsibility Report disclosed on www.cninfo.com.cn on the same day.
8. Information disclosure and transparency
We have established the relevant systems on information disclosure management, made the secretary of the Board of Directors be
responsible for the information disclosure of the Company, and designated www.cninfo.com.cn, the China Securities Journal, the
Shanghai Securities News, the Securities Times and the Securities Daily as the websites and newspapers for us to disclose information.
During the Reporting Period, we performed the obligations of information disclosure in strict accordance with the requirements of the
CSRC and the Shenzhen Stock Exchange and ensured that all shareholders have equal opportunities to access the information about
us.
We have established the office of the Board of Directors in charge of investor relations management in strict compliance with the
Work Guidelines for the Investor Relations Management of Listed Companies and the relevant systems on investor relations
management and is dedicated to enabling investors to equally access the business management, future development and other
information on us in a better manner. We actively replied to important problems that employees care about through the investor
“interaction” platform, investor consultation telephone, public email and other communication channels, as well as through
performance briefings convened on a periodic basis and receiving investigations by investors from time to time.
36
Mango Excellent Media Co., Ltd. Annual Report 2023
During the Reporting Period, we were awarded A, the highest level, in an annual assessment of information disclosure of listed
companies for the 5th consecutive year, and awarded the “2023 Best Practice Cases of Directors’ Office of Listed Companies” by the
China Association for Public Companies.
Is there any significant difference between the actual circumstance of corporate governance of the Company and the applicable laws,
administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies?
Yes No
There is no significant difference between the actual circumstance of our corporate governance and the applicable laws, administrative
regulations and the provisions of the CSRC regarding corporate governance of the listed companies.
II. The Company’s independence of its controlling shareholder and actual controller in assets,
personnel, finance, organization and business
We are independent of our controlling shareholder and actual controller in assets, personnel, finance, organization and business.
The Company’s assets are complete and free from any encumbrance, and we have independent purchasing, production and sales
systems and supporting facilities; we have an independent human resources department; we have an independent finance department,
and have established independent financial and accounting system and formulated financial management policies; we have set up
internal bodies that are suitable for our development requirements and operate independently; we are an independent corporate entity,
and conduct business and operate independently. None of our controlling shareholder, actual controller or their affiliates have illegally
occupied our funds or requested us to provide any guarantee in violation of the applicable laws and regulations.
III. Horizontal competition
Applicable N/A
Type of related-
party
Type of Company Progress and
relationship Company name Reasons Solutions
problems nature subsequent plans
with the Listed
Company
Regulated by In accordance with
Actual
Coexistence HTBI SASAC local relevant notices and
controller
counterparts replied approvals GBS has issued
issued by the written
General Office of the commitment on
CPC Hunan matters related
Provincial to horizontal
Committee, the competition
GBS has issued written
General Office of the with the Listed
commitment on matters
People’s Company
related to horizontal
Government of during the
competition with the
Hunan Province and application
Listed Company during
the Special Panel for process of the
the application process
Reform of Hunan Company’s
of the Company’s 2020
Provincial Cultural 2020 non-public
non-public offering and
System from 2018, offering and of
of free transfer by the
the CPC Hunan free transfer by
Company’s controlling
Provincial the Company’s
Regulated by shareholder of the
Actual Xiaoxiang Film Committee and the controlling
Coexistence SASAC local state-owned shares,
controller Group People’s shareholder of
counterparts which clearly describes
Government of the state-owned
the plan and schedule
Hunan Province shares, which
for solving the
proposed to clearly describes
horizontal competition,
reorganize the CPC the plan and
with details referring to
Committee of schedule for
Section VI “I.
Golden Eagle solving the
Performance of
Broadcasting horizontal
commitments”.
System Co., Ltd. to competition,
universally lead with details
GBS, Xiaoxiang referring to
Film Group and Section VI “I.
HBNHG. It was Performance of
agreed that commitments”.
Xiaoxiang Film
Group and HBNHG
37
Mango Excellent Media Co., Ltd. Annual Report 2023
were merged into
GBS to be its
wholly-owned
subsidiaries, and all
institutional assets
owned by Hunan
Broadcasting
System were
divested and
transferred to GBS,
so that the
management system
of “two institutions
under the leadership
of one CPC
committee operating
integratedly” can be
realized, and GBS
can further develop.
After the integration
of GBS, Xiaoxiang
Film Group (film
and television
content production
business) and HTBI
(game business)
under HBNHG have
similar businesses
with the Listed
Company.
IV. Annual and extraordinary general meetings of shareholders held during the Reporting
Period
1. General meetings of shareholders held during the Reporting Period
Percentage of
Resolution of the
Session Type of meeting investors attending Date of meeting Disclosure date
meeting
the meeting
Refer to the
Announcement on
Resolutions of the
1st extraordinary First Extraordinary
Extraordinary
general meeting of General Meeting of
general meeting of 71.32% February 21, 2023 February 22, 2023
shareholders in Shareholders in 2023
shareholders
2023 (Announcement No.
2023-010) disclosed
on
www.cninfo.com.cn.
Refer to the
Announcement on
Resolutions of the
Annual general 2022 Annual General
Annual general
meeting of Meeting of
meeting of 71.12% May 31, 2023 June 1, 2023
shareholders in Shareholders
shareholders
2022 (Announcement No.:
2023-040) disclosed
on
www.cninfo.com.cn.
38
Mango Excellent Media Co., Ltd. Annual Report 2023
2. Extraordinary general meetings of shareholders convened at the request of preferred shareholders with
resumed voting rights
Applicable N/A
V. Arrangement for differential voting rights
Applicable N/A
VI. Corporate governance of red-chip structured companies
Applicable N/A
VII. Directors, supervisors and executives
1. Particulars
39
Mango Excellent Media Co., Ltd. Annual Report 2023
Changes in Cause of
Beginning End date No. of additional
Opening No. of shares the number of Closing increase or
date of the of the shares acquired in
Name Gender Age Title Status balance of disposed of in the shares held balance of decrease in
term of term of the Reporting
shares held Reporting Period due to other shares held the number of
office office Period
reasons shares held
January 31,
Chairman Current
CAI 2023
Male 47
Huaijun September
Director Current
12, 2018
ZHONG June 14,
Male 49 Independent Director Current
Hongming 2017
January 8,
XIAO Xing Female 53 Independent Director Current
2019
January 8,
LIU Yuhui Male 54 Independent Director Current
2019
February 21,
YANG Yun Male 51 Director Current 1,500 1,500
2023
SONG February 21,
Male 55 Director Current
Zichao 2023
February 21,
Director Current
LIANG 2023
Male 45
Deping January 31,
General Manager Current
2023
September
LIU Xin Male 53 Director Current
19, 2019
May 19,
PENG Jian Male 52 Director Current
2022
Chairman of the February 27,
Current
Board of Supervisors 2023
FANG Fei Male 39
February 21,
Supervisor Current
2023
ZHANG February 21,
Male 52 Supervisor Current
Shangbin 2023
XIE September 7,
Male 39 Employee Supervisor Current
Shaoqiang 2022
ZHENG Deputy General August 16,
Male 48 Current
Huaping Manager 2018
Deputy General January 31,
ZHOU Hai Male 48 Current
Manager 2023
Deputy General
ZHANG Manager & Finance Current July 4, 2022
Male 47 Director
Zhihong
Board Secretary Current July 25, 2023
SHEN Deputy General
Male 44 Current July 4, 2022
Yadong Manager
40
Mango Excellent Media Co., Ltd. Annual Report 2023
Deputy General
LUO Zejun Male 53 Current July 4, 2022
Manager
ZHANG Chairman and November January
Male 60 Retired
Huali Director 16, 2017 31, 2023
CAI August 16, January
Male 47 General Manager Retired
Huaijun 2018 31, 2023
Chairman of the
June 14, February
YANG Yun Male 51 Board of Supervisors Retired
2017 21, 2023
and Supervisor
LUO September January
Male 62 Director Retired
Weixiong 19, 2019 31, 2023
ZHANG November January
Male 62 Director Retired
Yong 25, 2011 31, 2023
LIANG Executive Deputy Appointed January
Male 45 July 4, 2022
Deping General Manager and removed 31, 2023
June 14, February
LI Jiaochun Male 60 Supervisor Retired
2017 21, 2023
Deputy General April 27,
Retired July 4, 2022
Manager 2023
WU Jun Female 41
April 27, April 27,
Board Secretary Retired
2019 2023
Total -- -- -- -- -- -- 1,500 0 0 0 1,500 --
41
Mango Excellent Media Co., Ltd. Annual Report 2023
Whether any director or supervisor retired or any executive was removed during the Reporting Period?
Yes No
On January 31, 2023, Mr. ZHANG Huali resigned as the Chairman, director, and member of the Strategy Committee of the Company
due to work adjustment.
On January 31, 2023, Mr. LUO Weixiong and Mr. ZHANG Yong resigned as the director and members of the relevant committees of
the Board of Directors because they have reached the statutory retirement age.
On January 31, 2023, upon deliberation and approval at the 14th meeting of the 4th Board of Directors of the Company, Mr. CAI Huaijun,
director, served as the Chairman of the 4th Board of Directors and ceased to serve as the general manager of the Company.
On January 31, 2023, upon deliberation and approval at the 14 th meeting of the 4th Board of Directors of the Company, Mr. LIANG
Deping served as the general manager of the Company and ceased to serve as the executive deputy general manager.
On February 21, 2023, Mr. YANG Yun resigned as the non-employee supervisor and Chairman of the 4th Board of Supervisors due to
work adjustment.
On February 21, 2023, Mr. LI Jiaochun resigned as the non-employee supervisor of the 4th Board of Supervisors due to work adjustment.
On April 27, 2023, Ms. WU Jun resigned as the deputy general manager and Board Secretary of the Company due to work adjustment.
Changes in directors, supervisors and executives
Applicable N/A
Name Title Type Date Reason
Mr. ZHANG Huali resigned as the Chairman of the
ZHANG 4th Board of Directors, director, and member of the
Chairman Retired January 31, 2023
Huali Strategy Committee of the Company due to work
adjustment.
Upon deliberation and approval at the 14th meeting
of the 4th Board of Directors of the Company,
Appointed
CAI Huaijun Chairman January 31, 2023 director Mr. CAI Huaijun served as the Chairman of
and removed
the 4th Board of Directors and ceased to serve as the
general manager of the Company.
Mr. LUO Weixiong resigned as the director of the 4th
LUO Board of Directors and member of the relevant
Director Retired January 31, 2023
Weixiong committees of the Board of Directors because he has
reached the retirement age.
Mr. ZHANG Yong resigned as the director of the 4th
Board of Directors and member of the relevant
ZHANG Yong Director Retired January 31, 2023
committees of the Board of Directors because he has
reached the retirement age.
Upon deliberation and approval at the 14th meeting
of the 4th Board of Directors of the Company, Mr.
LIANG General Appointed
January 31, 2023 LIANG Deping served as the general manager of the
Deping Manager and removed
Company and ceased to serve as the executive
deputy general manager.
Upon deliberation and approval at the 14th meeting
Deputy General of the 4th Board of Directors of the Company, Mr.
ZHOU Hai Appointed January 31, 2023
Manager ZHOU Hai was appointed as the deputy general
manager of the Company.
Mr. YANG Yun was elected as the director at the 1st
YANG Yun Director Elected February 21, 2023 extraordinary general meeting of shareholders in
2023.
Mr. SONG Zichao was elected as the director at the
SONG Zichao Director Elected February 21, 2023 1st extraordinary general meeting of shareholders in
2023.
Mr. LIANG Deping was elected as the director at the
LIANG
Director Elected February 21, 2023 1st extraordinary general meeting of shareholders in
Deping
2023.
Mr. FANG Fei was elected as the non-employee
Supervisor and
supervisor at the 1st extraordinary general meeting of
Chairman of the
FANG Fei Elected February 21, 2023 shareholders in 2023, and as the chairman of the 4th
Board of
Board of Supervisors at the 12th meeting of the 4th
Supervisors
Board of Supervisors on February 27, 2023.
YANG Yun Chairman of the Retired February 21, 2023 Mr. YANG Yun resigned as the non-employee
42
Mango Excellent Media Co., Ltd. Annual Report 2023
Board of supervisor and chairman of the 4th Board of
Supervisors Supervisors due to work adjustment, which will
become effective after a new supervisor is elected at
the general meeting of shareholders of the Company.
Mr. ZHANG Shangbin was elected as the non-
ZHANG
Supervisor Elected February 21, 2023 employee supervisor at the 1st extraordinary general
Shangbin
meeting of shareholders in 2023.
Mr. LI Jiaochun resigned as the non-employee
supervisor of the 4th Board of Supervisors due to
LI Jiaochun Supervisor Retired February 21, 2023 work adjustment, which will become effective after
a new supervisor is elected at the general meeting of
shareholders of the Company.
Mr. ZHANG Zhihong was elected as the board
ZHANG
Board Secretary Appointed July 25, 2023 secretary at the 17th meeting of the 4th Board of
Zhihong
Directors.
Deputy General
Ms. WU Jun resigned as the deputy general manager
WU Jun Manager and Removed April 27, 2023
and board secretary due to work adjustment.
Board Secretary
2. Positions held
Professional background and main work experience of our current directors, supervisors and executives and main positions held by
them in the Company:
Directors of the Company:
CAI Huaijun, male, born in December 1977, member of the Communist Party of China, holds a doctor’s degree in management;
former director, General Manager and Chief Editor of Mango Excellent Media Co., Ltd., Secretary of the Party Committee, executive
director and General Manager of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and Chairman of Xiaomang
Electronic Commerce Co., Ltd.; and is now member of the Party Committee and Deputy General Manager (Vice President) of Golden
Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System), Secretary of the Party Committee of Satellite TV Channel, and
Deputy Secretary and Chairman of the Board of Directors in Mango Excellent Media Co., Ltd.
ZHONG Hongming, male, Han ethnicity, born in January 1975, graduated from the Law School of Renmin University of China,
doctor of laws; is now associate research fellow at the Institute of Law, Sichuan Academy of Social Sciences, member of the Executive
Council of the China Commercial Law Society, member of the Executive Council of the China Securities Law Society, and independent
director of FIYTA Precision Technology Co., Ltd. and Chengdu Shengbang Seals Co., Ltd.; and has been our independent director
since June 2017.
XIAO Xing, female, born in March 1971, member of the Communist Party of China, graduated from the Tsinghua University,
PhD in accounting; joined the School of Economics and Management of Tsinghua University in 1997, successively acted as teaching
assistant, lecturer, associate professor, tenured associate professor and tenured professor there; and is now professor and chief of the
Department of Accounting of the School of Economics and Management, Tsinghua University, and Director of the Institute for Global
Private Equity, Tsinghua University, member of the National Accounting Professional Master Education Steering Committee, member
of the Accounting Teaching Steering Committee of the Ministry of Education, executive director of the Accounting Society of China,
and independent director of Li Auto and Kuaishou Technology; and has been our independent director since January 2019.
LIU Yuhui, male, born in October 1970, graduated from the Chinese Academy of Social Sciences majoring in quantitative
economics, PhD; Head of the Key Financing Laboratory, the Institute of Finance, the Chinese Academy of Social Sciences from August
2003 to April 2017; research fellow of the Institute of Economics, the Chinese Academy of Social Sciences between April 2017 and
April 2023; and is now member of the Executive Council of the China Chief Economist Forum; and has been our independent director
since January 2019.
YANG Yun, male, born in July 1973, member of the Communist Party of China, holds an MBA degree, accountant; former
Deputy Director of the Entertainment Channel of Hunan Broadcasting System, member of the Party Committee and Deputy General
Manager of Mango Media Co., Ltd., Director of the Finance Department of Hunan Broadcasting System, Head of the Assets and
Finance Department of Golden Eagle Broadcasting System Co., Ltd., and the Chairman of the Board of Supervisors in Mango Excellent
Media Co., Ltd.; and is now member of the Party Committee, Deputy General Manager (Vice President) and Head of the Assets and
Finance Department of Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System), Secretary of the General Party
Branch, director and General Manager of Mango Media Co., Ltd., director of Mango Excellent Media Co., Ltd. and Hunan TV &
Broadcast Intermediary Co., Ltd.
SONG Zichao, male, born in August 1969, member of the Communist Party of China, grade-1 director, holds a master’s degree
in arts; former Director of R&D Center, Production Scheduling Center and Advertising Department of Satellite TV channel and Deputy
Director of Satellite TV channel in Hunan Broadcasting System, and Secretary of the Party Committee of TV channel in Golden Eagle
Broadcasting System Co., Ltd. (Hunan Broadcasting System); and is now Deputy Secretary of the Party Committee and Director of
Satellite TV Channel in Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System), Deputy Secretary of the Party
Committee and director of Mango Excellent Media Co., Ltd.
LIANG Deping, male, born in February 1979, member of the Communist Party of China, holds a MBA degree; former Deputy
General Manager and Finance Director, Executive Deputy General Manager of Mango Excellent Media Co., Ltd., member of the Party
Committee, Deputy General Manager and Finance Director of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and
Secretary of the Party Committee and executive director of Happigo Co., Ltd.; and is now member of the Party Committee, director
43
Mango Excellent Media Co., Ltd. Annual Report 2023
and General Manager of Mango Excellent Media Co., Ltd., Secretary of the Party Committee, executive director and General Manager
of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., director of Xiaomang Electronic Commerce Co., Ltd., and
member of the Party Committee of Satellite TV Channel in Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System).
LIU Xin, male, born in October 1971, member of the Communist Party of China, PhD; former Deputy General Manager and
General Manager of the Data Department of China Mobile, and Secretary of the Party Committee, Chairman and General Manager of
Migu Culture Technology Co., Ltd., and is now General Manager of the Development Strategy Department of China Mobile, and
director of iFlyTek Co., Ltd.; and has been our director since September 2019.
PENG Jian, male, born in November 1972, member of the Communist Party of China, undergraduate; former Deputy Director
of the Division IV of Hunan Commissioner Office of the Ministry of Finance, full-time Deputy Secretary of the Party Committee of
Hunan Commissioner Office of the Ministry of Finance, full-time Deputy Secretary of the Party Committee of Hunan Regulatory
Bureau of the Ministry of Finance and Assistant to the General Manager (temporary) of Hunan Chasing Financial Holding Group Co.,
Ltd.; is now Assistant to the General Manager of Hunan Chasing Financial Holding Group Co., Ltd.; and our director since May 2022.
Supervisors of the Companies:
FANG Fei, male, born in December 1985, member of the Communist Party of China, holds a master’s degree in science; former
General Manager of Advertising & Marketing Center, Assistant to the President and Deputy General Manager of Hunan Happy
Sunshine Interactive Entertainment Media Co., Ltd., and employee supervisor of Mango Excellent Media Co., Ltd.; and is now
Chairman of the Board of Supervisors of Mango Excellent Media Co., Ltd., Deputy Director of Satellite TV Channel in Golden Eagle
Broadcasting System Co., Ltd. (Hunan Broadcasting System), member of the Party Committee of Hunan Happy Sunshine Interactive
Entertainment Media Co., Ltd., General Manager of Shanghai Mangofun Technology Co., Ltd. and director of Xiaomang Electronic
Commerce Co., Ltd.
ZHANG Shangbin, male, born in May 1972, member of the Communist Party of China, holds a bachelor’s degree in law; former
Deputy Director of Production and Scheduling Center and Director of Public Affairs Department, Director of Comprehensive Affairs
Department, and Director of HR Department of Satellite TV Channel in Hunan Broadcasting System; and is now member of the Party
Committee, Secretary of Discipline Inspection Committee, and supervisor of Mango Excellent Media Co., Ltd.
XIE Shaoqiang, male, born in March 1985, member of the Communist Party of China, undergraduate; former General Manager
of Large Membership Center, General Manager of Operator Network Center and General Manager of Smart Large Screen Center in
Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and the General Manager of Xiaomang Electronic Commerce Co.,
Ltd.; and is now employee supervisor of Mango Excellent Media Co., Ltd., Deputy Chief Editor and General Manager of Brand
Promotion Center of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd.
Executives (other than those who serve on the Board of Directors concurrently) of the Company:
ZHENG Huaping, male, born in October 1976, member of the Communist Party of China, holds a master’s degree in philosophy;
former Deputy Chief of Mango Media Restructuring and Listing Office, Deputy Director of the Chief Editor Office of the Hunan
Satellite TV Channel, Deputy Director of HBS Program Transaction Management Center, and Chairman and General Manager of
Shanghai Mangofun Technology Co., Ltd.; and is now member of the Party Committee, Chief Editor and Deputy General Manager of
Mango Excellent Media Co., Ltd., member of the Party Committee, Chief Editor and Deputy General Manager of Hunan Happy
Sunshine Interactive Entertainment Media Co., Ltd., director of Xiaomang Electronic Commerce Co., Ltd., and member of the Party
Committee of Satellite TV Channel in Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System).
ZHOU Hai, male, born in November 1976, member of the Communist Party of China, holds a master’s degree in law, literary
editor of second rank; former Director of the Chief Editor Office, Assistant to the Director and Director of the Chief Editor Office of
the Satellite TV Channel in Hunan Broadcasting System, member of the Party Committee, Deputy Director and Director of the Chief
Editor Office of Satellite TV Channel in Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System), member of the
Party Committee and Secretary of the Discipline Inspection Committee of Mango Excellent Media Co., Ltd.; and is now member of
the Party Committee and Deputy General Manager of Mango Excellent Media Co., Ltd., executive director of Mango Studios Culture
Co., Ltd., and member of the Party Committee of Satellite TV Channel in Golden Eagle Broadcasting System Co., Ltd. (Hunan
Broadcasting System).
ZHANG Zhihong, male, born in September 1977, member of the Communist Party of China, holds a master’s degree in
management; former Senior Director of the Assets and Finance Department, General Manager of the Finance Center, and Finance
Director of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and Deputy General Manager and Finance Director of
Happy Sunshine Xingmang Interactive Entertainment Media Co., Ltd.; and is now Deputy General Manager, Finance Director and
Board Secretary of Mango Excellent Media Co., Ltd, member of the Party Committee, Deputy General Manager and Finance Director
of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and the director of Xiaomang Electronic Commerce Co., Ltd.
SHEN Yadong, male, born in June 1980, member of the Communist Party of China, holds a master’s degree in law; former
Deputy General Manager of the Program Department of the Chief Editor Office of Satellite TV Channel in Hunan Broadcasting System,
Head of Copyright Management Department of HBS Program Transaction Management Center, Deputy General Manager of Shanghai
EE-Media Co., Ltd., No. 1 Deputy Director of Legal Affair Department of Golden Eagle Broadcasting System Co., Ltd., and Assistant
to General Manager of Mango Excellent Media Co., Ltd.; and is now Deputy General Manager of Mango Excellent Media Co., Ltd.,
and executive director and General Manager of Shanghai EE-Media Co., Ltd.
LUO Zejun, male, born in February 1971, member of the Communist Party of China, undergraduate; former Director of the
Security Department of Hunan Economic TV Channel, Deputy Director of HBS Urban Channel, Executive Deputy General Manager,
Secretary of the General Party Branch, and General Manager of Hunan Radio, Film & Television Property Management Center, and
Director of HBS Logistics Support Center; and is now Deputy General Manager of Mango Excellent Media Co., Ltd., and member of
the Party Committee and Deputy General Manager of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd.
Positions held in shareholders:
Applicable N/A
Name Shareholder Position Beginning date of End date of the Whether or not
44
Mango Excellent Media Co., Ltd. Annual Report 2023
the term of office term of office receiving
remunerations and
subsidies from
such shareholder
Secretary of the
General Party
Mango Media Co.,
YANG Yun Branch, Director
Ltd.
& General
Manager
Positions held in other entities:
Applicable N/A
Whether or not
receiving
Beginning date of End date of the
Name Entity Position remunerations and
the term of office term of office
subsidies from
such entity
Member of the
Party Committee,
Deputy General
Manager (Vice
CAI Huaijun GBS (HBS) President) and
Secretary of the
Party Committee
of Satellite TV
Channel
Institute of Law,
ZHONG Associate research
Sichuan Academy
Hongming fellow
of Social Sciences
ZHONG China Commercial Member of the
Hongming Law Society Executive Council
ZHONG China Securities Member of the
Hongming Law Society Executive Council
ZHONG FIYTA (Group) Independent
Hongming Co., Ltd. Director
Chengdu
ZHONG Independent
Shengbang Seals
Hongming Director
Co., Ltd.
School of
Economics and
XIAO Xing Management, Professor
Tsinghua
University
Institute for Global
Private Equity,
XIAO Xing Dean
Tsinghua
University
National
Accounting
Professional
XIAO Xing Member
Master Education
Steering
Committee
Accounting
Teaching Steering
XIAO Xing Committee of the Member
Ministry of
Education
Accounting
XIAO Xing Executive director
Society of China
Independent
XIAO Xing Li Auto
Director
Kuaishou Independent
XIAO Xing
Technology Director
China Chief Member of the
LIU Yuhui
Economist Forum Executive Council
45
Mango Excellent Media Co., Ltd. Annual Report 2023
Member of the
Party Committee,
Deputy General
Manager (Vice
YANG Yun GBS (HBS)
President) and
Head of the Assets
and Finance
Department
YANG Yun HTBI Director
Deputy Secretary
of the Party
Committee and
SONG Zichao GBS (HBS)
Director of
Satellite TV
Channel
Member of the
Party Committee
LIANG Deping GBS (HBS)
of Satellite TV
Channel
General Manager
of the
LIU Xin China Mobile Development
Strategy
Department
LIU Xin iFlyTek Co., Ltd. Director
Hunan Chasing
Assistant to the
PENG Jian Financial Holding
General Manager
Group Co., Ltd.
Member of the
Party Committee
ZHENG Huaping GBS (HBS)
of Satellite TV
Channel
Member of the
Party Committee
ZHOU Hai GBS (HBS)
of Satellite TV
Channel
Deputy Director of
FANG Fei GBS (HBS) Satellite TV
Channel
Punishments imposed by the securities regulatory authorities in the past three years on the directors, supervisors and executives of the
Company currently in office or leaving office during the Reporting Period:
Applicable N/A
3. Remunerations of directors, supervisors and executives
Decision-making process, criteria for determination and actual amount in respect of remunerations of directors, supervisors and
executives
Decision-making process: The remunerations of our directors and supervisors are decided by the shareholders’ meeting according to
our Articles of Association and other relevant provisions; the remunerations of executives are decided by the Board of Directors. The
remunerations and subsidies of our directors and supervisors are considered and approved by the Board of Directors, and then submitted
to the general meeting of shareholders for approval.
Criteria for determination of the remunerations: The remunerations are determined according to our business situations, scope, duties,
importance and result of performance appraisal. The subsidies of independent directors are determined by reference to the overall level
of the listed companies in the same region and industry.
Amount of remunerations actually paid: The remunerations of directors, supervisors and executives holding posts in the Company are
paid by the Company during the Reporting Period. We do not pay any additional subsidy to our directors and supervisors. The amount
of total remunerations paid in 2023 was RMB33,881,000.
Remunerations of directors, supervisors and executives paid in the Reporting Period:
In RMB 0’000
Total Whether or not
Name Gender Age Title Status remuneration receiving
received from remunerations
46
Mango Excellent Media Co., Ltd. Annual Report 2023
the Company from any
(tax inclusive) affiliate of the
Company
CAI Huaijun Male 47 Chairman Current 0
ZHONG Independent
Male 49 Current 22
Hongming Director
Independent
XIAO Xing Female 53 Current 22
Director
Independent
LIU Yuhui Male 54 Current 22
Director
YANG Yun Male 51 Director Current 0
SONG Zichao Male 55 Director Current 0
Director &
LIANG Deping Male 45 General Current 500
Manager
LIU Xin Male 53 Director Current 0
PENG Jian Male 52 Director Current 0
Chairman of
FANG Fei Male 39 the Board of Current 450
Supervisors
ZHANG
Male 52 Supervisor Current 244.77
Shangbin
Employee
XIE Shaoqiang Male 39 Current 280
Supervisor
ZHENG Deputy General
Male 48 Current 450
Huaping Manager
Deputy General
ZHOU Hai Male 48 Current 400
Manager
Deputy General
Manager,
ZHANG Finance
Male 47 Current 400
Zhihong Director and
Board
Secretary
Deputy General
SHEN Yadong Male 44 Current 256
Manager
Deputy General
LUO Zejun Male 53 Current 256
Manager
ZHANG Huali Male 60 Chairman Retired 0
LUO Weixiong Male 62 Director Retired 0
ZHANG Yong Male 62 Director Retired 0
LI Jiaochun Male 60 Supervisor Retired 0
Deputy General
Manager and
WU Jun Female 41 Retired 85.33
Board
Secretary
Total -- -- -- -- 3,388.1 --
Other information:
Applicable N/A
VIII. Performance of duties by the directors during the Reporting Period
1. Meetings of the Board of Directors held during the Reporting Period
Meeting Date of meeting Disclosure date Resolution of the meeting
Refer to the Announcement on
Resolutions of the 14th meeting of the 4th
14th meeting of the 4th Board
January 31, 2023 February 1, 2023 Board of Directors disclosed on
of Directors
www.cninfo.com.cn (Announcement
No. 2023-003)
15th meeting of the 4 th Board April 20, 2023 April 22, 2023 Refer to the Announcement on
47
Mango Excellent Media Co., Ltd. Annual Report 2023
of Directors Resolutions of the 15th meeting of the 4th
Board of Directors disclosed on
www.cninfo.com.cn (Announcement
No. 2023-016)
Refer to the Announcement on
Resolutions of the 16th meeting of the 4th
16th meeting of the 4th Board
May 10, 2023 May 11, 2023 Board of Directors disclosed on
of Directors
www.cninfo.com.cn (Announcement
No. 2023-035)
Refer to the Announcement on
Resolutions of the 17th meeting of the 4th
17th meeting of the 4th Board
July 25, 2023 July 26, 2023 Board of Directors disclosed on
of Directors
www.cninfo.com.cn (Announcement
No. 2023-044)
Refer to the Announcement on
Resolutions of the 18th meeting of the 4th
18th meeting of the 4th Board
August 17, 2023 August 18, 2023 Board of Directors disclosed on
of Directors
www.cninfo.com.cn (Announcement
No. 2023-048)
Refer to the Announcement on
Resolutions of the 19th meeting of the 4th
19th meeting of the 4th Board
October 24, 2023 October 25, 2023 Board of Directors disclosed on
of Directors
www.cninfo.com.cn (Announcement
No. 2023-057)
2. Attendance of the directors at meetings of the Board of Directors and shareholders
Attendance of the directors at meetings of the Board of Directors and shareholders
No. of board Whether or
No. of board
meetings that not having
No. of board meetings No. of board No. of
should be No. of board been absent
meetings present by meetings shareholders’
Director attended meetings from two
present in means of present by meeting
during the absent from consecutive
person communicati proxy attended
Reporting board
on equipment
Period meetings
CAI Huaijun 6 0 6 0 0 No 2
ZHONG
6 0 6 0 0 No 2
Hongming
XIAO Xing 6 0 6 0 0 No 2
LIU Yuhui 6 0 6 0 0 No 2
YANG Yun 5 0 5 0 0 No 1
SONG
5 0 5 0 0 No 1
Zichao
LIANG
5 0 5 0 0 No 1
Deping
LIU Xin 6 0 6 0 0 No 0
PENG Jian 6 0 6 0 0 No 2
Explanation about absence from two consecutive meetings of the Board of Directors
3. Objections raised by the directors regarding matters of the Company
Whether any director has raised any objection regarding matters of the Company?
Yes No
No director has raised any objection regarding matters of the Company during the Reporting Period.
4. Other information regarding the performance of duties by the directors
Whether the suggestions put forward by the directors have been adopted by the Company?
Yes No
48
Mango Excellent Media Co., Ltd. Annual Report 2023
Explanation about the adoption or non-adoption by the Company of the suggestions put forward by the directors
During the Reporting Period, our directors have performed their duties and obligations diligently in strict accordance with the Company
Law, the Securities Law and other applicable laws and regulations and our Articles of Association, actively participated in the relevant
meetings, and seriously considered all proposals. Our independent directors have kept communications with other directors, executives
and related personnel by multiple ways, asked for information about our production, operation and financial conditions, put forward
suggestions regarding our development strategies and corporate governance, and expressed independent opinions about related-party
transactions, profit distribution policies, remuneration management and other matters, to effectively ensure the fairness and
objectiveness of the decisions made by the Board of Directors. Our directors perform their duties honestly and in good faith, safeguard
the legitimate rights and interests of the Company and all shareholders, and play an active role in promoting our operational compliance
and healthy development.
49
Mango Excellent Media Co., Ltd. Annual Report 2023
IX. Activities of the committees of the Board of Directors during the Reporting Period
No. of
Date of Important opinions Performance of
Committee Members meetings Topics Objections (if any)
meeting and suggestions other duties
held
Considered and approved the Proposal Regarding
the 2022 Auditor’s Report, the Proposal Regarding
XIAO Xing the Self-assessment of Internal Controls in 2022, the
(Chairman), Proposal Regarding the Special Report on the
ZHONG April 10, Deposit and Use of Offering Proceeds in 2022, the
Hongming 2023 Proposal Regarding the Special Examination Report
and LIU on the Implementation of Significant Events and
Yuhui Material Receipts and Payments in 2022, and the
Proposal Regarding the Re-engagement of the
Accounting Firm.
Considered and approved the Proposal Regarding
XIAO Xing
the Financial Report for the First Quarter of 2023
(Chairman),
and the Proposal Regarding the Special Report on
ZHONG April 14,
the Deposit and Use of Offering Proceeds in the First
Hongming 2023
Quarter of 2023; and reviewed the First Quarter
and LIU
Audit Work Summary and Second Quarter Work
Yuhui
Plan 2023 prepared by the Audit Department.
Considered and approved the Proposal Regarding
Audit
the Financial Report for the First Half of 2023, and
Committee XIAO Xing 5
the Proposal Regarding the Special Report on the
(Chairman),
Deposit and Use of Offering Proceeds in the First
ZHONG
Half of 2023; and approved the Proposal Regarding
Hongming, August 6,
the Special Examination Report on the
LIU Yuhui, 2023
Implementation of Significant Events and Material
LIANG
Receipts and Payments in the First Half of 2023; and
Deping and
reviewed the Second Quarter Audit Work Summary
LIU Xin
and Third Quarter Work Plan 2023 prepared by the
Audit Department.
XIAO Xing
Considered and approved the Proposal Regarding
(Chairman),
the Financial Report for the Third Quarter of 2023;
ZHONG
approved the Proposal Regarding the Special Report
Hongming, October 19,
on the Deposit and Use of Offering Proceeds in the
LIU Yuhui, 2023
Third Quarter of 2023; and reviewed the Third
LIANG
Quarter Audit Work Summary and Fourth Quarter
Deping and
Work Plan 2023 prepared by the Audit Department.
LIU Xin
XIAO Xing December Considered and approved the Proposal Regarding
(Chairman), 29, 2023 the 2023 Annual Report Audit Plan prepared by Pan-
50
Mango Excellent Media Co., Ltd. Annual Report 2023
ZHONG China Certified Public Accountants LLP, the
Hongming, Proposal Regarding the 2023 General Internal
LIU Yuhui, Control Plan and the Proposal Regarding the 2024
LIANG Internal Audit Plan; and reviewed the 2023 Audit
Deping and Work Summary and 2024 Work Plan prepared by the
LIU Xin Audit Department.
Considered and approved the Proposal Regarding
Waiver of the Notice Period for the 1st Meeting of
ZHONG the Nominating Committee of the 4th Board of
Hongming Directors in 2023, the Proposal Regarding
(Chairman), Nomination of Chairman of the 4th Board of
January 31,
XIAO Xing, Directors, the Proposal Regarding Nomination of
2023
LIU Yuhui, Non-independent Directors of the 4th Board of
and CAI Directors, the Proposal Regarding Nomination of the
Huaijun General Manager of the Company, and the Proposal
Nominating
2 Regarding Nomination of the Deputy General
Committee
Manager of the Company.
ZHONG
Hongming
(Chairman),
XIAO Xing, Considered and approved the Proposal Regarding
July 19, 2023
LIU Yuhui, Nomination of the Board Secretary of the Company.
CAI Huaijun
and SONG
Zichao
LIU Yuhui
(Chairman),
Considered and approved the Proposal Regarding
ZHONG January 31,
Total Salaries and Executives’ Remunerations of
Hongming, 2023
Company for 2022.
Compensation XIAO Xing,
and Appraisal and LIU Xin 2
Committee LIU Yuhui
(Chairman),
Considered and approved the Proposal Regarding
ZHONG April 10,
Performance Appraisal of Executives for 2022 and
Hongming, 2023
Remuneration Proposal for 2023.
XIAO Xing
and LIU Xin
51
Mango Excellent Media Co., Ltd. Annual Report 2023
X. Activities of the Board of Supervisors
Whether the Board of Supervisors has identified any risk involving the Company in its supervisory activities during the Reporting
Period?
Yes No
The Board of Supervisors has not raised any objection to the supervisory matters during the Reporting Period.
XI. Employees
1. Employees and their composition by specialization and education background
Employees of the parent company (person) at the end of the
31
Reporting Period
Employees of main subsidiaries (person) at the end of the
4,366
Reporting Period
Total of employees on active duty (person) at the end of the
4,397
Reporting Period
Total of employees receiving remuneration for the current
4,397
period (person)
Retired employees whose expense is undertaken by parent
13
company and main subsidiaries (person)
Composition of employees by specialization
Areas of specialization Headcounts
Production personnel 1,517
Sales personnel 1,694
Technical personnel 774
Finance personnel 147
Administrative personnel 265
Total 4,397
Education background
Education background Headcounts
Doctorate 6
Master’s degree 611
Bachelor’s degree 3,035
Junior college or below 745
Total 4,397
2. Remuneration policy
In order to establish and improve the market-based salary determination mechanism and internal incentive and restraint mechanism,
and effectively promote the scientific development of the Company, the Company has formulated and promulgated the Measure of
Gross Remuneration Determination Mechanism and Management of Mango Excellent Media Co., Ltd., which provides detailed
provisions on the method of determining the gross payroll of the Company’s employees, reasonable intervals, formula, management
procedures and supervision and inspection mechanisms. This measure strictly complies with the relevant provisions of the policy
documents and adheres to the basic principles of “strategic orientation, dual-effect unification, benefits synergy and dynamic
supervision”. According to this measure, the annual gross payrolls of employees of the Company are determined reasonably by taking
the total annual salary of prior year as the basis and considering the Company’s salary-income ratio and market and industry benchmark,
the completion of the assessment goals, the rate of value preservation and appreciation of state-owned assets, labor cost production
ratio and other factors in accordance with the Company’s development strategy and remuneration strategy, annual production and
operation goals, social benefits, economic benefits and other factors.
3. Training plan
The Company continuously establishes and improves a systematic employee training system and cultivation system, and carries out
training work by categories and levels. Based on an in-depth understanding of the training needs of employees, the Company has
developed interesting and practical courses for employees of different functions, and established a comprehensive training system
52
Mango Excellent Media Co., Ltd. Annual Report 2023
covering vocational training, theoretical education, professional training, marketing, new technology, new media operation, etc., to
support the comprehensive development of the Company’s talents and enhance employees’ sense of belonging.
4. Outsourcing
Applicable N/A
Total working hours of outsourcing (hour) 516,594
Total remuneration paid for outsourcing (RMB) 23,505,685.49
XII. The Company’s profit distribution and capitalization of capital reserve
Policies of profit distribution during the Reporting Period, especially the development, implementation, or adjustment of cash
dividend distribution policies
Applicable N/A
During the Reporting Period, the Company implemented the 2022 profit distribution plan as follows: a cash dividend of RMB1.3 (tax
inclusive) per 10 shares, or RMB243,193,705.95 in total, was distributed to all shareholders based on the total share capital of
1,870,720,815 shares, without distributing any bonus shares or transferring any capital reserve to the share capital.
Special explanation for cash dividend policies
Do they comply with the provisions of Articles of Association
or the requirements of the resolutions of general meeting of Yes
shareholders?
Are dividend standards and ratios clear and explicit? Yes
Are decision-making procedures and mechanisms complete? Yes
Do independent directors diligently perform their duties and
Yes
play their roles?
If the Company has not distributed cash dividends, explain the
reason, and describe the measures to be taken in order to N/A
increase the return to investors in the futures
Do minority shareholders have the opportunity to fully express
their opinions and demands? Are their legal rights and interests Yes
fully protected?
Are conditions and procedures for adjusted or changed cash
Yes
dividend policies compliant and transparent?
The Company’s proposed profit distribution plan and proposed capitalization of capital reserve during the Reporting Period are
consistent with relevant provisions of the Company’s Articles of Association and dividend management methods.
Yes No N/A
The Company’s proposed profit distribution plan and proposed capitalization of capital reserve during the Reporting Period are
consistent with relevant provisions of the Company’s Articles of Association and other regulations.
Description of the profit distribution and capitalization of capital reserve during this year
Number of bonus shares distributed for each 10 shares (unit:
0
share)
Amount of dividends distributed for each 10 shares (in RMB)
1.8
(tax inclusive)
Number of shares transferred from capital reserve each 10
0
shares (unit: share)
Basic number of the share capital for the distribution proposal
1,870,720,815
(unit: share)
Amount of cash dividends (tax inclusive) 336,729,746.70
Amount of cash dividends distributed by other means (such as
0.00
share repurchase) (RMB)
Total amount of cash dividends (RMB) 336,729,746.70
Distributable profit (RMB) 485,261,705.93
Ratio of total cash dividends to the distributable profit 100.00%
Particulars of cash dividends distributed for the Reporting Period
If the Company is at the growth period and has any major asset arrangement, then at the time of distribution of profits, its cash
53
Mango Excellent Media Co., Ltd. Annual Report 2023
dividends shall account for at least 20% of profits distributed this time.
Descriptions on proposal of profit distribution or capitalization of capital reserve
The profit distribution proposal which is in compliance with the relevant provisions of the Articles of Association and the
deliberation procedures, has fully protected the legitimate rights and interests of minority investors.
The Company puts forward no proposal for cash dividend distribution despite of profitable and positive profits of its parent company
attributable to shareholders during the Reporting Period
Applicable N/A
XIII. Implementation of the Company’s equity incentive plan, employee shareholding plan or
other employee incentive measures
Applicable N/A
The Company has no equity incentive plan, employee shareholding plan or other employee incentive measures as well as the
implementation thereof during the Reporting Period.
XIV. Construction and implementation of internal control system during the Reporting Period
1. Construction and implementation of internal control system
During the Reporting Period, the Company conscientiously complies with all laws and regulations as well as the provisions of the
Company’s internal control system to standardize operations, optimize governance and control risks. Through comprehensive
implementation of the Company’s internal control application manual, the Company makes continuous review and evaluation on the
implementation effects of the internal control system, continues to improve and optimize various important business processes in
conjunction with business changes, and revises and updates the internal control application manual, in order to ensure its internal
control management develops synchronously with businesses, and its internal control system is complete, compliant with laws and
regulations, effective and feasible. The Audit Department under the Audit Committee of the Board of Directors of the Company carries
out independent and objective supervision and evaluation within the Company pursuant to regulations and systems such as the Basic
Standards for Enterprise Internal Control, Internal Audit Standards, the Company’s Audit Management System and Management
Measures for Self-Evaluation of the Company’s Internal Control. In accordance with the determination of material deficiencies in the
Company’s internal control over financial report, the Company has no material deficiencies in internal control over financial report on
the benchmark date of the internal control evaluation report, and the Company has maintained effective internal control over financial
report in all material aspects under the requirements of Standards for Enterprise Internal Control and related regulations. In accordance
with the determination of material deficiencies in the Company’s internal control over non-financial report, the Company has no
material deficiencies in internal control over non-financial report on the benchmark date of the internal control evaluation report. There
are no factors affecting the evaluation conclusion of the effectiveness of internal control from the benchmark date of the internal control
evaluation report to the issue date thereof.
2. Details of material internal control deficiencies identified during the Reporting Period
Yes No
XV. Management and control of subsidiaries by the Company during the Reporting Period
Integration Problems met Solutions Subsequent
Company name Integration plan Progress
progress in integration adopted solutions
Golden Eagle Acquisition by
Completed N/A N/A N/A N/A
Cartoon cash
XVI. Internal control assessment report or internal control audit report
1. Internal control assessment report
Disclosure date April 22, 2024
Disclosure index http://www.cninfo.com.cn
Proportion of the total assets of the entities 100.00%
54
Mango Excellent Media Co., Ltd. Annual Report 2023
included in the assessment scope to the
total assets recorded in the Company’s
consolidated financial statements
Proportion of the operating revenue of the
entities included in the assessment scope to
the operating revenue recorded in the 100.00%
Company’s consolidated financial
statements
Identification Standard of Deficiencies
Category Financial Report Non-financial Report
1. General deficiencies: other internal
control deficiencies under the threshold of
material deficiencies and significant
deficiencies.
1. General deficiencies: other internal
2. Significant deficiencies: the selection and
control deficiencies under the threshold of
application of accounting policies
material deficiencies and significant
inconsistent with the generally accepted
deficiencies.
accounting standards; the absence of anti-
2. Significant deficiencies: general mistakes
fraud procedures and control measures; the
resulting from decision-making procedures;
absence of appropriate control mechanisms,
violation of internal rules and regulations,
the absence of compensatory controls or
resulting in losses; deficiencies in
failure in the implementation thereof for the
significant business mechanisms or
accounting treatment of irregular or special
systems; significant or general deficiencies
transactions; the existence of one or more
in internal control that have not been
deficiencies in the control of the financial
Qualitative standard rectified.
reporting process at the end of the period
3. Material deficiencies: significant
and the absence of reasonable assurance that
mistakes due to lack of democratic decision-
the financial statements prepared are true
making procedures or unscientific decision-
and accurate.
making procedures, resulting in significant
3. Material deficiencies: fraud acts of the
property losses to the Company; serious
Company’s directors, supervisors, or
violations of national laws and regulations;
executives; correction of published financial
lack of significant business mechanisms, or
reports by the Company, and material
ineffectiveness of implementation thereof;
misstatements in the current financial
continuous or a large quantity of significant
reports detected by the certified public
internal control deficiencies in the
accountants but not identified by the
Company.
Company’s internal control process;
ineffective supervision by the Audit
Committee and the internal audit institution
on internal control.
1. General deficiencies: potential
misstatement of total consolidated profit
<3%, potential misstatement of total
consolidated owner’s equity <0.5%,
potential misstatement of total consolidated
assets <0.5%, potential misstatement of
total consolidated operating revenue <0.5%. 1. General deficiencies: direct property loss
2. Significant deficiencies: 3% ≤ potential subsequent to consolidation <0.5% of total
misstatement of total consolidated profit assets of the Company;
<5%, 0.5% ≤ potential misstatement of total 2. Significant deficiencies: 0.5% of total
consolidated owner’s equity <1%, 0.5% ≤ assets of the Company ≤ direct property loss
Quantitative standard
potential misstatement of total consolidated subsequent to consolidation <1% of total
assets <3%, 0.5% ≤ potential misstatement assets of the Company;
of total consolidated operating revenue 3. Material deficiencies: 1% of total assets
<1%. of the Company ≤ direct property loss
3. Material deficiencies: potential subsequent to consolidation.
misstatement of total consolidated profit
≥5%, potential misstatement of total
consolidated owner’s equity ≥1%, potential
misstatement of total consolidated assets
≥3%, potential misstatement of total
consolidated operating revenue ≥1%.
Number of material deficiencies of
0
financial reports (piece)
Number of material deficiencies of non-
0
financial reports (piece)
55
Mango Excellent Media Co., Ltd. Annual Report 2023
Number of significant deficiencies of
0
financial reports (piece)
Number of significant deficiencies of non-
0
financial reports (piece)
2. Audit or assurance report of internal control
Assurance report of internal control
Audit opinion on assurance report of internal control
The Company maintained effective internal control over financial reports in all material aspects as of December 31, 2023 in
accordance with the Basic Standard for Corporate Internal Control and relevant regulations. This conclusion is based on the inherent
limitations set forth in the authentication report.
Disclosure of Internal Control Assurance Report Disclosure
Disclosure date April 22, 2024
Disclosure index http://www.cninfo.com.cn
Type of opinions Standard unqualified opinion
Whether there are any material deficiencies in non-financial
No
reports
Did the accounting firm issue a modified assurance report of internal control?
Yes No
Was the assurance report of internal control issued by the accounting firm in line with self-assessment report opinion of the Board of
Directors?
Yes No
XVII. Rectification on self-examination problems regarding the special campaign to improve
the governance of listed companies
Under relevant requirements of the Announcement on Launching a Special Campaign to Improve the Governance of Listed
Companies (Zheng Jian Hui [2020] No. 69) by China Securities Regulatory Commission (“CSRC”) and the Circular on Launching a
Special Campaign to Improve the Governance of Listed Companies (Xiang Zheng Jian Gong Si Zi [2020] No. 31) by Hunan Regulatory
Bureau of CSRC, the Company conscientiously organizes, carefully arranges and actively carries out the special campaign to improve
the governance of listed companies. Through self-examination, self-correction and self-regulation, the Company has strengthened the
endogenous power of corporate governance and improved rules of corporate governance system, thus a good ecology of corporate
governance has been established, and a listed company governance structure with each department taking accountability for their own
duties and responsibilities, coordinated operation and effective balances has been further improved, so as to solidify the foundation of
the Company’s high-quality development.
Problems: There was no horizontal competition between Mango Media Co., Ltd. as our controlling shareholder and the Listed
Company. Mango Media Co., Ltd. has made written commitment on matters related to horizontal competition with the Listed Company
to avoid horizontal competition with the Listed Company. Xiaoxiang Film Group under GBS as our indirect controlling shareholder
and HTBI have similar businesses with the Listed Company.
Reasons: In accordance with relevant notices and replied approvals issued by the General Office of the CPC Hunan Provincial
Committee, the General Office of the People’s Government of Hunan Province and the Special Panel for Reform of Hunan Provincial
Cultural System from 2018, the CPC Hunan Provincial Committee and the People’s Government of Hunan Province proposed to
reorganize the CPC Committee of Golden Eagle Broadcasting System Co., Ltd. to universally lead Golden Eagle Broadcasting System,
Xiaoxiang Film Group and HBNHG. It was agreed that Xiaoxiang Film Group and HBNHG were merged into GBS to be its wholly-
owned subsidiaries, and all institutional assets owned by Hunan Broadcasting System were divested and transferred to GBS, so that
the management system of “two institutions under the leadership of one CPC committee operating integratedly” can be realized, and
GBS can further develop. After the integration of GBS, Xiaoxiang Film Group (film and television content production business) and
HTBI (game business) under HBNHG have similar businesses with the Listed Company.
Rectification plan: GBS has issued written commitment on matters related to horizontal competition with the Listed Company
during the application process of the Company’s 2020 non-public offering and of free transfer by the Company’s controlling
shareholder of the state-owned shares, which clearly describes the plan and schedule for solving the horizontal competition with key
details referring to Section VI “I. Performance of commitments”.
56
Mango Excellent Media Co., Ltd. Annual Report 2023
Section V Environmental and Social Responsibility
I. Significant environment protection problems
Whether the Listed Company and its subsidiaries are in high pollution industries regulated by the State Department of Environmental
Protection?
Yes No
Description of administrative penalties for environmental problems during the Reporting Period
Effects on
Company or Reasons for production and Rectification
Violation cases Penalty result
subsidiaries penalty operation of the measures
Listed Company
N/A N/A N/A N/A N/A N/A
Other environment information disclosed with reference to other entities engaged in high pollution industries
None
Measures taken to reduce its carbon emissions and their effectiveness during the Reporting Period
Applicable N/A
Reasons for not disclosing other environment information
None of the Company or its subsidiaries is a major polluter identified by the environmental protection authority. During the Reporting
Period, the Company and its subsidiaries received no penalties due to violation of laws and regulations related to environment protection.
II. Description of social responsibilities
See the 2023 ESG Report and Social Responsibility Report disclosed on www.cninfo.com.cn on the same day.
III. Description of consolidating and expanding achievements of poverty eradication and rural
revitalization
See the 2023 ESG Report and Social Responsibility Report disclosed on www.cninfo.com.cn on the same day.
57
Mango Excellent Media Co., Ltd. Annual Report 2023
Section VI Important Events
I. Performance of Commitments
1. Commitments completed during the Reporting Period or not completed as of the end of the Reporting
Period by the actual controller, shareholders, affiliates and acquirer of the Company, the Company itself and
other related parties
Applicable □ N/A
Commitment Committed by Type Content Date Deadline Performance
1. After completion of this free transfer, we and our related
parties will minimize and regulate the related-party
transactions with the List Company and its subordinate
enterprises. 2. After completion of this free transfer, with
respect to the related-party transactions with the Listed
Company and its subordinate enterprises that are
unavoidable or conducted with good reason, we and our
related parties will comply with the market principle to
conclude such transactions at fair and reasonable market
prices, perform decision-making procedures for related-
party transactions in accordance with the provisions of
applicable laws, regulations and normative documents,
fulfill the obligations of information disclosure in
Commitments on accordance with law and go through the relevant
Commitments Avoiding formalities for approval, and avoid such transactions as
made in the Golden Eagle Horizontal required, and will not use related-party transactions to
November Long-
Acquisition Report Broadcasting Competition, illegally use funds and assets of the Listed Company or Ongoing
22, 2022 term
or Equity Change System Co., Ltd. Related-party seek any other improper interests or use the status of the
Report Transactions and controlling shareholder to damage the legitimate interests
Fund Use of the Listed Company and other shareholders. 3. After
completion of this free transfer, we will not use the
shareholder rights owned by us in the Listed Company to
manipulate or instruct the List Company or any of its
directors, supervisors and executives to cause the Listed
Company to provide or accept funds, goods, services or
other assets on unfair terms, or do any act that is detrimental
to the interests of the Listed Company. The aforementioned
commitments will remain in effect for so long as we
actually control the Listed Company and the Listed
Company maintains its listing status. We will be liable for
any actual losses, if any, caused to the Listed Company
arising from our breach of the aforementioned
commitments.
In order to ensure the independence of the Listed Company,
we make the following commitments with respect to
maintaining the independence of the Listed Company after
this free transfer: 1. We guarantee that Mango Excellent
Media will be independent of us and our related parties
business, assets, finance, personnel and organization,
among others, and we will strictly comply with the relevant
provisions of the China Securities Regulatory Commission
(the “CSRC”) on the independence of listed companies; 2.
Commitments
we undertake that we will not use our status as the actual
made in the Golden Eagle
Other controller of the Listed Company to damage the legitimate November Long-
Acquisition Report Broadcasting Ongoing
Commitments interests of the Listed Company; 3. we and the channels and 22, 2022 term
or Equity Change System Co., Ltd.
enterprises controlled by us will eliminate any illegal use
Report
of assets and funds of the Listed Company, and in no event
shall we request the Listed Company and its controlled
subsidiaries to provide any form of guarantee or financial
support to us. The aforementioned commitments will
remain in effect for so long as we remain control of Mango
Excellent Media. We will compensate Mango Excellent
Media in time and in full for any and all losses caused to
Mango Excellent Media arising from our failure to fulfill
the aforementioned commitments.
Commitments After completion of this transfer, we will give full play to
Golden Eagle
made in the Other our active role as an indirect controlling shareholder of the November Long-
Broadcasting Ongoing
Acquisition Report Commitments Listed Company, cause the Listed Company to 22, 2022 term
System Co., Ltd.
or Equity Change continuously improve the corporate governance structure,
58
Mango Excellent Media Co., Ltd. Annual Report 2023
Report establish a sound internal control system, regulate the
operations of the Listed Company and raise the governance
level of the Listed Company in accordance with the
requirements of the Articles of Association of Mango
Excellent Media Co., Ltd., the Companies Law of the
People’s Republic of China, the Securities Law of the
People’s Republic of China, the Code of Corporate
Governance of Listed Companies, the Rules Governing
Listing of Stocks on Shenzhen Stock Exchange, the
Guidelines for Articles of Association of Listed Companies
and all other applicable laws and regulations of the CSRC
and the Shenzhen Stock Exchange.
1. As at the date of issue of the letter of commitments, we
and the channels or enterprises controlled by us have not
carried out horizontal competition which has material
adverse effect on the Listed Company and/or its controlled
enterprises. 2. By the end of July 2026, we and the channels
or enterprises controlled by us will settle the horizontal
competition with the Listed Company that already existed
by various means such as entrusted management, assets
restructuring, business adjustment/termination and assets
transfer/sale, and implement measures related to business
integration, in accordance with laws, regulations, policies,
articles of association or similar constitutional documents
of such channels or enterprise, with a view to benefiting
business development of the Listed Company and
safeguarding benefits of shareholders of the Listed
Company. 3 We will, and procure that channels and
enterprises controlled by us will, adopt effective measures
to: (1) avoid adding other business constituting horizontal
competition with the Listed Company and/or its controlled
Commitments
enterprises before settling existing horizontal competition;
made in the Golden Eagle
Other (2) not to support any persons other than the Listed November Long-
Acquisition Report Broadcasting Ongoing
Commitments Company and/or its controlled enterprises in conducting 22, 2022 term
or Equity Change System Co., Ltd.
any business or activities which compete or would compete
Report
with the business currently conducted or presently
proposed to be conducted by the Listed Company and/or its
controlled enterprises. 4 If we and the channels or
enterprises controlled by us have any business opportunity
of carrying out, participating in or holding shares in any
business or activity which would compete with the business
conducted by the Listed Company and/or its controlled
enterprises, then the Listed Company and/or its controlled
enterprises shall have preferred rights with respect to such
business opportunity. 5 We agree to bear and compensate
for all losses, damages and expenses caused to the Listed
Company and/or its controlled enterprises arising from our
breach of the aforementioned commitments. 6. The
aforementioned commitments will remain in effect for so
long as we actually control the Listed Company and the
Listed Company maintains its listing status. We will be
liable for any actual losses, if any, caused to the Listed
Company arising from our breach of the aforementioned
commitments.
1. During 6 months prior to the date of board resolution
concerning this issuance and till today, we did not invest in
any similar financial business; from the date of issuing
letter of commitment (December 25, 2020) to the date
when the capitals raised this time are totally used or during
36 months after raised capitals are available, we undertake
Commitments to not add investment in any similar financial business
made at the time of Mango Excellent Other (including capital increase, loan, security and other forms December Long-
Ongoing
IPO or re- Media Co., Ltd. Commitments of investment); 2. As at the date of this Announcement, we 25, 2020 term
financing hold 100% of shares in Hunan Happy Money Microfinance
Co., Ltd. (hereinafter “Happy Money”), we will complete
dispose of small loan business of Happy Money through
dissolution and liquidation, termination of business or
transferring equities to qualified entity within 6 months
after letter of commitments is issued, and we will no longer
be engaged in small loan business.
(1) As at the date of issue of the letter of commitments,
Commitments on GBS and the channels or enterprises controlled by it have
Fully fulfilled
Avoiding not carried out horizontal competition which has material
Commitments (Such
Golden Eagle Horizontal adverse effect on the Issuer and/or its controlled
made at the time of September Long- commitments have
Broadcasting Competition, enterprises. (2) Within 5 years after completion of this
IPO or re- 25, 2020 term been made in the
System Co., Ltd. Related-party issuance, GBS and the channels or enterprises controlled
financing Acquisition Report
Transactions and by it will settle the horizontal competition with the Issuer
again).
Fund Use that already existed by various means such as entrusted
management, assets restructuring, business
59
Mango Excellent Media Co., Ltd. Annual Report 2023
adjustment/termination and assets transfer/sale, and
implement measures related to business integration, in
accordance with laws, regulations, policies, articles of
association or similar organizational documents of such
channels or enterprise, with a view to benefiting business
development of the Issuer and safeguarding benefits of
shareholders of the Issuer. (3) GBS will, and procure that
channels and enterprises controlled by it will, adopt
effective measures to: (i) avoid adding other business
constituting horizontal competition with the Issuer and/or
its controlled enterprises before settling existing horizontal
competition; (ii) not to support any persons other than those
of the Issuer and/or its controlled enterprises in conducting
any business or activities which compete or would compete
with the business currently conducted or presently
proposed to be conducted by the Listed Company and/or its
controlled enterprises. (4) If GBS and the channels or
enterprises controlled by it have any business opportunity
of carrying out, participating in or holding shares in any
business or activity which would compete with the business
conducted by the Issuer and/or its controlled enterprises,
then the Issuer and/or its controlled enterprises shall have
preferred rights with respect to such business opportunity.
(5) GBS agrees to bear and compensate for all losses,
damages and expenses caused to the Issuer and/or its
controlled enterprises arising from GBS’s breach of the
aforementioned commitments.
(1) We undertake that we will not interfere in the
Company’s operation and management activities beyond
our authority, nor will we encroach on the Company’s
interests; (2) From the date of this letter of commitment to
the completion of the Company’s issuance of A-share
shares to specific persons, if securities regulatory
authorities such as the CSRC and Shenzhen Stock
Exchange make separate provisions or put forward other
requirements on measures to compensate for diluted returns
Commitments Hunan and the commitments thereon, and the above commitments
made at the time of Broadcasting Other cannot meet such provisions, we will then make September Long-
Ongoing
IPO or re- System; Mango Commitments supplementary commitments in accordance with the latest 25, 2020 term
financing Media Co., Ltd. provisions; (3) We will effectively take relevant recovery
measures for returns formulated by the Company and fulfill
our corresponding commitments on recovery measures for
returns. Besides, we will, in case of violating or refusing to
fulfill the above commitments, undertake the
corresponding obligations of explanation, apology and so
on in accordance with the relevant provisions, and will be
liable for compensation as appropriate in accordance with
law if losses are thus caused to the Company or its
shareholders.
(1) I undertake that I will faithfully and diligently perform
my duties and safeguard the legitimate rights and interests
of the Company and all shareholders; (2) I undertake that I
will not to transfer benefits to other entities or individuals
free of charge or under unfair conditions, nor otherwise
damage the Company’s interests; (3) I undertake that I will
restrict my position-related consumption; (4) I undertake
that I will not use the Company’s assets to engage in
investment or consumption activities irrelevant to
performance of my duties; (5) I undertake that I will
CAI Huaijun; HE
procure the linkage of the compensation system formulated
Jin; LIANG
by the board of directors or the remuneration and appraisal
Deping; LIU Xin;
assessment committee with the implementation of the
LIU Yuhui; LUO
Company’s recovery measures for returns within my legal
Commitments Weixiong; TANG
authority; (6) If the Company subsequently implements the
made at the time of Liang; WANG Ke; Other September Long-
equity incentive plan, I undertake that I will procure the Ongoing
IPO or re- WU Jun; XIAO Commitments 25, 2020 term
linkage of exercise conditions for the Company’s equity
financing Xing; ZHANG
incentives to be announced with the implementation of the
Huali; ZHANG
Company’s recovery measures for returns within my legal
Yong; ZHENG
authority;
Huaping; ZHONG
(7) From the date of this letter of commitment to the
Hongming
completion of the Company’s issuance of A-share shares to
specific persons, if securities regulatory authorities such as
the CSRC and Shenzhen Stock Exchange make separate
provisions or put forward other requirements on measures
to compensate for diluted returns and the commitments
thereon, and the above commitments cannot meet such
provisions, I undertake that I will then make supplementary
commitments in accordance with the latest provisions; (8)
I undertake that I will effectively implement measures to
compensate for diluted returns formulated by the Company
60
Mango Excellent Media Co., Ltd. Annual Report 2023
and fulfill my corresponding commitments on measures to
compensate for diluted returns. Besides, I will, in case of
violating or refusing to fulfill the above commitments,
undertake the corresponding obligations of explanation,
apology and so on in accordance with the relevant
provisions, and will be liable for compensation as
appropriate in accordance with if losses are thus caused to
the Company or its shareholders.
1. Within 36 months from the end of this issuance, we will
not transfer the Listed Company’s shares acquired by us in
this restructuring in any form, including but not limited to
the public transfer through securities market or transfer by
agreement, nor will we entrust others with management of
the Listed Company’s shares held by us. Within 6 months
of completion of this restructuring, if the daily closing price
of the Listed Company’s shares is lower than the issue price
for 20 consecutive trading days, or the daily closing price
of the Listed Company’s shares at the end of a 6-month
period is lower than the issue price, then the lock-up period
of the Listed Company’s shares acquired by us in this
restructuring will automatically be extended for 6 months;
2. The aforesaid share lock-up arrangements shall also Fully fulfilled, but
apply to the increase in holdings of consideration shares such shareholder
Commitments
acquired by us in this restructuring due to placement of has not gone
made at the time of Mango Media Co., Commitments on July 12, July 12,
shares, bonus share distribution and capitalization of through the
IPO or re- Ltd. Share Lock-Up 2018 2021
capital reserve by the Listed Company and other reasons formalities for
financing
within the lock-up period; 3. If the aforesaid commitments circulation of
on the lock-up period are inconsistent with the latest restricted shares.
regulatory opinions issued by the security regulatory
authority, then we agree to make adjustments accordingly
pursuant to the regulatory opinions issued by the competent
security regulatory authority; after the expiry of the
aforesaid lock-up period, the relevant regulations of the
CSRC and Shenzhen Stock Exchange shall apply; 4. If we
are suspected of providing or disclosing any information
containing misrepresentations, misleading statements or
materials omissions in this transaction and are therefore
investigated by the judicial authority or the CSRC, we will
not transfer the beneficial interest held by us in the Listed
Company before the investigation conclusion of the case is
determined.
In order to avoid the horizontal competition with the Listed
Company, Mango Media and Hunan Broadcasting System
have respectively issued their own Letter of Commitments
on Avoiding Horizontal Competition, undertaking that,
during the period of acting as the controlling shareholder
and actual controller of the Listed Company,
1. We and the channels and enterprises controlled by us are
not engaged in any business or activity in any form that
competes or would compete, directly or indirectly, with the
business of the Listed Company and/or its controlled
enterprises.
2. After completion of this restructuring, we will take and
procure the channels and companies controlled by us to
take effective measures to avoid: (1) engaging in any
business or activities directly or indirectly in any form that
competes or would compete, directly or indirectly, with the
Commitments on business of the Listed Company and/or its controlled
Avoiding enterprises, or holding any interests or benefits in such
Commitments Hunan
Horizontal business; (2) supporting in any form any persons other than
made at the time of Broadcasting July 12, Long-
Competition, the Listed Company and/or its controlled enterprises in Ongoing
IPO or re- System; Mango 2018 term
Related-party engagement in any business or activity that competes or
financing Media Co., Ltd.
Transactions and would compete with the business currently conducted or
Fund Use presently proposed to be conducted by the Listed Company
and/or its controlled enterprises.
3. If we and the channels and enterprises controlled by us
have any business opportunity of carrying out, participating
in or holding shares in any business or activity which would
compete with the business conducted by the Listed
Company and/or its controlled enterprises, then Listed
Company and/or its controlled enterprises shall have
preferred rights with respect to such business opportunity.
4. If our business and the business of the channels and
enterprises controlled by us competes with business of the
Listed Company and/or its controlled enterprises, then we
and the channels and enterprises controlled by us will cease
engaging in any business similar with or identical with the
principal business of the Listed Company and/or its
controlled enterprises to avoid the horizontal competition
by stopping conduct of the relevant competitive business,
61
Mango Excellent Media Co., Ltd. Annual Report 2023
including the relevant competitive business in that of the
listed company or transferring the relevant competitive
business to any unrelated third party.
5. We agree to bear and be liable for all losses, damage and
costs caused to the Listed Company and/or its controlled
enterprises due to our breach of the aforesaid
commitments.”
In order to reduce and regulate the related-party
transactions and safeguard the legal rights and interests of
Happigo and minority shareholders, Hunan Broadcasting
System and Mango Media have issued the Letter of
Commitments on Regulating Related-party Transactions
with the contents as follows: we and the channels and other
public institutions or economic organizations controlled by
us will take measures to avoid conducting the relate
related-party d party transactions with the Listed Company
and its controlled enterprises as far as possible; regarding
the related-party transactions that cannot be avoided or are
definitely necessary (including but not limited to product
transactions, mutual offer of services/labor and etc.), we
Commitments on undertake that we will urge the channels and other public
Avoiding institutions or economic organizations controlled by us to
Commitments Hunan
Horizontal follow the principles of market fairness, justice and
made at the time of Broadcasting July 12, Long-
Competition, openness, legally sign agreements and perform the legal Ongoing
IPO or re- System; Mango 2018 term
Related-party procedures in accordance with the provisions on the
financing Media Co., Ltd.
Transactions and decision-making and abstention of related-party
Fund Use transactions of the relevant laws and regulations, normative
documents and the Listed Company to guarantee the
fairness and compliance of the related-party transactions,
will not harm the legitimate rights and interests of
shareholders of the Listed Company and its controlled
subsidiaries as well as shareholders of the Listed Company
through related-party transactions, and will promptly
disclose the information as required by the relevant laws
and regulations and normative documents; We and the
channels and other public institutions or economic
organizations controlled by us will eliminate any illegal use
of assets and funds of the Listed Company. If aforesaid
commitments are breached, we are willing to assume all
legal responsibilities arising therefrom.
Mango Media Co., Ltd., the controlling shareholder of the
Company, makes the following commitments with respect
to the intention to reduce shareholdings:
(1) If we intend to reduce the shares of the Company held
us it after expiry of lock-up period, we will legally do same,
and make a public announcement within 3 trading days
prior to reduction through the Company. The total number
of shares of the Company reduced by us within 2 years after
expiry of lock-up period shall not exceed 5% of total shares
Commitments
Commitments on held by us at the time of IPO, and the price at which shares
made at the time of Mango Media Co., January 21, Long-
Reducing are reduced shall not be less than 100% of price of IPO. If Ongoing
IPO or re- Ltd. 2015 term
Shareholdings shares are reduced 2 years after expiry of lock-up period,
financing
the price at which shares are reduced through call auction
trading system of securities exchange shall not be less than
closing price of shares in the trading day immediately
preceding the share reduction announcement day.
(2) The reduction period will be 6 months after the public
announcement of the reduction plan, and if we continue to
reduce our shareholdings after expiry of the reduction
period, we will make the public announcement anew in
accordance with the aforesaid arrangements.
Hongyi Investment Industry Phase I Fund (Tianjin) (L.P.) Mianyang Fund
(“Hongyi Investment”), Mianyang Science and and Hongshan
Technology Industry Investment Fund (L.P.) (“Mianyang Capital disclosed
Fund”) and Tianjin Hongshan Capital Investment Fund on November 19,
Hongyi Investment
Center (L.P.) (“Hongshan Capital”) as other existing 2016 and Hongyi
Industry Phase I
shareholders of the Company make the following Investment
Fund (Tianjin)
commitments with respect to the intention to reduce disclosed on
(L.P.); Mianyang
shareholdings: (1) We will not transfer or entrust others December 10, 2016
Commitments Science and
Commitments on with management of any pre-IPO shares of the Issuer held the Announcement
made at the time of Technology January 21, January
Reducing by us, nor propose the repurchase of such shares by the on Prompt of
IPO or re- Industry 2015 21, 2018
Shareholdings Company within 12 months from the listing date of the Shareholdings
financing Investment Fund
Issuer. (2) If we intend to reduce our shareholdings in the Reduction Plan for
(L.P.); Tianjin
Company after the expiry of the lock-up period of shares Shareholders
Hongshan Capital
held by us in the Company, we will legally do same, and Holding 5% or
Investment Fund
make a public announcement within 3 trading days prior to More of Shares
Center (L.P.)
reduction through the Company. The shareholdings of Prior to IPO
Hongyi Investment, Mianyang Fund, Hongshan Capital we through the
reduce in aggregate within 2 years after the expiry of the Company, and as
lock-up period will equal to the issuer’s shares held in total of the end of 2017,
62
Mango Excellent Media Co., Ltd. Annual Report 2023
by us and the reduction price will not lower than 80% of all of them have
the IPO price of the Company. The reduction period will be completed
6 months after the public announcement of the reduction reduction of their
plan, and if we continue to reduce our shareholdings after shareholdings.
expiry of the reduction period, we will make the public
announcement anew in accordance with the aforesaid
arrangements. During the period from the listing of the
Company’s shares until reduction of shareholdings, if the
Company has paid dividends, given bonus shares,
capitalized capital reserve, issued new shares or had other
ex-right and ex-dividend matters, the floor reduction price
and number of reduced shares will be adjusted accordingly.
If the Company’s shareholders fail to fulfill these
commitments, the proceeds from reduction of
shareholdings in the Company will belong to the listed
Company.
We will improve the profit distribution system, particularly
the cash dividend policy. The Company improved the
Articles of Associations (Draft) at the 1st extraordinary
general meeting of shareholders in 2014, stipulating the
Company’s profit distribution policy, the procedures for
decision-making and implementation of the profit
distribution policy, preparation and adjustment mechanism
of the profit distribution policy, and the plan for
Commitments Commitments on
Mango Excellent shareholders’ dividend returns in order to enhance the January 21, Long-
made at the time of Distributing Ongoing
Media Co., Ltd. protection over minority shareholders. The Articles of 2015 term
IPO or re- Dividends
Associations (Draft) further defines the Company’s profit
financing
distribution, especially the specific conditions,
percentages, and forms of the cash dividend distribution as
well as the conditions of the bonus share distribution, and
clarifies that the cash dividends are superior to bonus
shares; and the Company prepared the Plan on Dividend
Returns for the Coming Three Years of Happigo Inc. to
further implement the profit distribution system.
(I) Commitments on Avoiding Horizontal Competition
In order to avoid the horizontal competition and protect the
interests of the Company and other shareholders, Hunan
Broadcasting System as the actual controller of the
Company and Mango Media as the controlling shareholder
of the Company have respectively issued their own Letter
of Commitments on Avoiding Horizontal Competition.
1. Mango Media as the controlling shareholder of the
Company has issued its Letter of Commitments on
Avoiding Horizontal Competition.
(1) Mango Media and its other subordinate enterprises
other than the Issuer are not engaged in any business or
activity in any form that competes or would compete,
directly or indirectly, with the business of the Issuer and/or
its subordinate enterprises. (2) Mango Media will, and
procure that any enterprises controlled by Mango Media
will, adopt effective measures to avoid: (A) engaging in any
business or activities directly or indirectly in any form that
competes or would compete, directly or indirectly, with the
business of the Issuer and/or its subordinate enterprises, or
Commitments on
holding any interests or benefits in such business; (B)
Avoiding
Commitments Hunan supporting any persons other than the Issuer and/or its
Horizontal
made at the time of Broadcasting subordinate enterprises in conducting any business or January 21, Long-
Competition, Ongoing
IPO or re- System; Mango activities which compete or would compete with the 2015 term
Related-party
financing Media Co., Ltd. business currently conducted or presently proposed to be
Transactions and
conducted by the Issuer and/or its subordinate enterprises.
Fund Use
(3) If Mango Media and its subordinate enterprises have
any business opportunity of carrying out, participating in or
holding shares in any business or activity that would
compete with the business conducted by the Issuer and/or
its subordinate enterprises, then the Issuer and/or its
subordinate enterprises shall have preferred rights with
respect to such business opportunity. (4) Mango Media, as
the shareholder of the Issuer, will not engage in any
business or activity that damages or would damage the
interests of the Issuer and/or its subordinate enterprises by
utilizing the status of the shareholder, the rights to which
the shareholder is entitled and the information obtained in
accordance with the relevant laws, regulations and the
Articles of Association, including but not limited to the
trade secrets of the Issuer and/or its subordinate enterprises.
Mango Media agrees to bear and be liable for all losses,
damage and costs caused to the Issuer and/or its
subordinate enterprises due to breach of the
aforementioned commitments.
2. Commitments on avoiding horizontal competition and
63
Mango Excellent Media Co., Ltd. Annual Report 2023
constraint measures of the actual controller
(1) Letter of Overall Commitments issued by Hunan
Broadcasting System
On March 29, 2012, Hunan Broadcasting System, as the
actual controller of the Company, issued the Letter of
Commitments on Avoiding Horizontal Competition,
undertaking that: ①Hunan Broadcasting System and its
other subordinate enterprises other than the Issuer are not
engaged in any business or activity in any form that
competes or would compete with the business of the Issuer
and/or its subordinate enterprises directly or indirectly. ②
Hunan Broadcasting System will, and procure that any
enterprises controlled by Hunan Broadcasting System will,
adopt effective measures to avoid: (A) engaging in any
business or activities directly or indirectly in any form that
competes or would compete with the business of the Issuer
and/or its subordinate enterprises, or holding any interests
or benefits in such business; (B) supporting any persons
other than the Issuer and/or its subordinate enterprises in
conducting any business or activities which compete or
would compete with the business currently conducted or
presently proposed to be conducted by the Issuer and/or its
subordinate enterprises. ③ If Hunan Broadcasting System
and its subordinate enterprises have any business
opportunity of carrying out, participating in or holding
shares in any business or activity which would compete
with the business conducted by the Issuer and/or its
subordinate enterprises, then the Issuer and/or its
subordinate enterprises shall have preferred rights with
respect to such business opportunity. Hunan Broadcasting
System agrees to bear and be liable for all losses, damage
and costs caused to the Issuer and its subordinate
enterprises due to breach of the aforementioned
commitments.
(II) Letter of Commitments on Avoiding Fund Use
The controlling shareholder and the actual controller of the
Company undertake that: they will strictly comply with the
provisions of the laws, regulations, normative documents
and the Company’s relevant rules and systems, not
appropriate or use the Company’s assets or resources in any
form, nor do anything directly or indirectly which harms or
would harm the interests of the Company and other
shareholders. If the rights and interests of the Company or
other shareholders are harmed due to breach of the
aforementioned commitments and undertakings, the
controlling shareholder and the actual controller will be
liable for compensation in accordance with law.
We undertake not to sell any shares held by us in the Listed
Commitments on Company, including the additional shares that we may
Other Mango Media Co., August 28, August
not Reducing receive due to any distribution of bonus shares, Ongoing
Commitments Ltd. 2023 27, 2024
Shareholdings capitalization of capital reserve, share allotment or
otherwise, within 12 months from August 28, 2023.
Fulfill the
commitments on Yes
time or not
2. If the Company has made any profit forecast on its assets or project and the Reporting Period falls within
the period of such profit forecast, explanation about whether the forecast profit has been achieved and the
related reasons
Applicable □ N/A
Reason of
Forecast
Actual result failure to Disclosure
Underlying Beginning result of the
End time of of the current achieve the date of the Disclosure index (if
asset or time of current
forecast period forecast original any)
project forecast period
(RMB0’000) profit (if forecast
(RMB0’000)
applicable)
Announcement of
Acquisition of
Golden
January 1, December July 26, 100% Shares of
Eagle 4,625.38 4,754.32 N/A
2023 31, 2025 2023 Hunan Golden
Cartoon
Eagle Cartoon
Media Co., Ltd. by
64
Mango Excellent Media Co., Ltd. Annual Report 2023
Cash and Related-
party Transaction
(Announcement
No.: 2023-046)
disclosed on
www.cninfo.com.cn
on July 26, 2023
Commitments made by the shareholders and counterparties of the Company with respect to the annual operating results of the
Company or related assets:
Applicable □ N/A
See the Announcement of Acquisition of 100% Shares of Hunan Golden Eagle Cartoon Media Co., Ltd. by Cash and Related-party
Transaction (Announcement No. 2023-046) disclosed on www.cninfo.com.cn on July 26, 2023.
Fulfillment of the commitment on operating results and effect on the assessment of impairment loss on goodwill:
Golden Eagle Cartoon has fulfilled the commitment on operating results for 2023.
II. Appropriation of non-operating funds of the Listed Company by the controlling shareholder
and other related parties
Applicable □ N/A
In RMB0’000
Balance
New
Proportion Total Proportion as of the
appropriated Estimated
Shareholders Type of of the repayments of the disclosure Estimated Estimated
Appropriation Reason for Opening amount Closing repayment
or related related latest during the latest date of repayment repayment
period appropriation balance during the balance time
parties relationship audited Reporting audited the method amount
Reporting (month)
net assets Period net assets annual
Period
report
Shanghai
Mamma Mia
Borrowings for
Interactive Cash
Others 7 years production and 232.98 0 0.00% 30 202.98 0.00% 202.98 202.98 May 2026
Entertainment settlement
operation
Technology
Co., Ltd.
Total 232.98 0 0.00% 30 202.98 0.00% 202.98 202.98
In order to support the business development of Shanghai Mamma Mia Interactive Entertainment Technology Co.,
Relevant decision procedures Ltd. (“Mamma Mia”) which was originally a wholly-owned subsidiary of Happy News, Mamma Mia would be
supported with liquidity from Happy News through Happy News’ internal approval and decision-making process.
Reasons for new appropriation of non-operating funds by
controlling shareholders and other related parties and
description of the responsible persons’ accountability and N/A
proposed measures by the Board of Directors in the current
period
In December 2016, Happy News transferred 70% of the equity shares of Mamma Mia externally (to non-controlling
Reasons for failure to settle appropriated non-operating funds shareholders and their affiliates), so that Mamma Mia was no longer included in the scope of consolidation of Happy
as planned, and description of accountability and proposed News. At present, Happy News still holds 24.25% of the equity shares of Mamma Mia. In order to ensure stable
measures by the Board of Directors in the current period development of Mamma Mia, Happy News and Mamma Mia signed Repayment Plan, which stipulates monthly
repayment of RMB 50,000 since January 2022, until the loan is paid off.
Pan-China Certified Public Accountants LLP believes that the summary sheet prepared by management of Mango
Excellent Media complies with the provisions of Guideline No. 8 on Regulation of Listed Companies – Regulatory
Special review opinions on appropriation of funds given by Requirements on Fund Transfer and External Guarantee of Listed Companies (CSRC Announcement (2022) No.
accounting firm 26) and Guideline No. 1 on Self-discipline Regulation of Companies Listed at of the Shenzhen Stock Exchange –
Business Handling (Revised in February 2023) (SZS (2023) No. 135) in all material aspects, truly reflecting
appropriation of non-operating funds and transfer of other related capitals of Mango Excellent Media in 2023.
Reasons for inconsistency between appropriation of non-
operating funds by the controlling shareholder and other related
N/A
parties disclosed in the Company’s annual report and that in the
special audit opinion
65
Mango Excellent Media Co., Ltd. Annual Report 2023
III. External Guarantees in Violation of Regulations
□Applicable N/A
The Company has no external guarantees in violation of regulations during the Reporting Period.
IV. Explanations from the Board of Directors for the “Modified Auditor’s Report” Issued Most
Recently
□Applicable N/A
V. Explanations from the Board of Directors, the Board of Supervisors, the Independent
Directors (if any) for the “Modified Auditor’s Report” Issued by the Engaged Accounting Firm
during the Reporting Period
□Applicable N/A
VI. Explanation from the Board of Directors for Accounting Policies and Accounting Estimate
Change and Significant Accounting Mistake Correction
Applicable □N/A
Explanation about changes in the accounting policies:
Since January 1, 2023, we have applied the Interpretation of the Accounting Standards for Business Enterprises No. 16 issued by the
Ministry of Finance, and pursuant to the provisions regarding transition between old and new standards, treated the cumulative effect
of the adoption of the new standard as an adjustment to the opening retained earnings and other related financial statement items for
the current period. See “V. Significant Accounting Policies and Accounting Estimates” under “Section X Financial Report” for details.
VII. Explanation for Changes in the Scope of Consolidated Financial Statements Comparing
with Those in Prior Year
Applicable □N/A
During the Reporting Period, we acquired Golden Eagle Cartoon through a business combination involving entities under common
control, and deregistered Beijing Happy Mango Culture Media Co., Ltd. See “IX. Changes in Scope of Consolidation” under “Section
X Financial Report” for details.
VIII. Engagement and Dismissal of the Accounting Firm
Current certified public accountants
Domestic certified public accountants Pan-China Certified Public Accountants LLP
Remuneration paid to the domestic certified public accountants
198
(in RMB0’000)
Audit period of the domestic accounting firm 8
Name of the engaged certified public accountants ZHENG Shengjun and HU Jian
Audit period of the engaged certified public accountants 2 years for ZHENG Shengjun and 2 years for HU Jian
Whether the certified public accountant is changed
□Yes No
Description of engaging certified public accountants, financial advisor, or sponsor for internal control
□Applicable N/A
66
Mango Excellent Media Co., Ltd. Annual Report 2023
IX. Delisting Subsequent to the Disclosure of the Annual Report
□Applicable N/A
X. Bankruptcy and Reorganization
□Applicable N/A
The Company has no matters with respect to bankruptcy and reorganization during the Reporting Period.
XI. Material Litigation or Arbitration
□Applicable N/A
The Company involves in no material litigation or arbitration during the year.
XII. Penalty and Rectification
□Applicable N/A
The Company has no penalty and rectification during the Reporting Period.
XIII. Integrity of the Company and its Controlling Shareholder and Actual Controller
□Applicable N/A
XIV. Significant Related-party Transactions
1. Related-party transactions related to daily operations
Applicable □N/A
Exceed
Proportion Approved Available
Amount the
Related-party Pricing of similar trading Mode of market price Disclosure Disclosure
Related-party Type Content Price (in approved
relationship principle trading amount (in settlement of similar date index
RMB0’000) amount or
amount RMB0’000) transactions
not
Under
common Acceptance
Copyright, Market Bank April 22,
GBS control of the of labor 86300.26 86,300.26 8.80% 78,130 Yes 86300.26
etc. pricing transfer 2023
same actual service
controller
Under
common Advertisin
Rendering of Market Bank April 22,
GBS control of the g release, 67609.33 67,609.33 4.62% 90,000 No 67609.33
labor service pricing transfer 2023
same actual etc.
controller Announcement
of Estimated
Yunhong Company
Daily Related-
Communication materially Acceptance
Advertisin Market Bank April 22, party
Technology affected by of labor 17234.19 17,234.19 1.76% 20,000 No 17234.19
g service pricing transfer 2023 Transactions in
(Guangzhou) the actual service
2023 disclosed
Co., Ltd. controller
on
Yunhong Company
www.cninfo.co
Communication materially
Rendering of Advertisin Market Bank April 22, m.cn
Technology affected by 56631.6 56,631.6 3.87% 81,000 No 56631.6
labor service g release pricing transfer 2023
(Guangzhou) the actual
Co., Ltd. controller
MIGU Culture Acceptance
Sharing the Bandwidt Market Bank April 22,
Technology Co., of labor 9678.04 9,678.04 0.99% 12,187 No 9678.04
key manager h, etc. pricing transfer 2023
Ltd. service
MIGU Culture
Sharing the Rendering of Operator Market 269954.7 Bank April 22,
Technology Co., 269,954.76 18.45% 265,000 Yes 269954.76
key manager labor service revenue pricing 6 transfer 2023
Ltd.
Total -- -- 507,408.18 -- 546,317 -- -- -- -- --
67
Mango Excellent Media Co., Ltd. Annual Report 2023
Details of return of goods in large sales None
Actual performance during the Reporting Period (if any)
in the event that the total amount of the daily related-
None
party transactions to occur in the current period is
expected by categories
Reasons for the large difference between the trading price
N/A
and the market reference price (if applicable)
2. Related-party transactions related to acquisition or disposal of assets and equities
Applicable □N/A
Carrying Appraisal
Related- value of value of Transfer Trading
Related- Pricing Mode of Disclosure
party Type Content transferred transferred price profit or loss Disclosure index
Party principle settlement date
relationship assets assets (RMB0’000) (RMB0’000)
(RMB0’000) (RMB0’000)
Announcement of
Acquisition of
100% Shares of
Hunan Golden
100%
Eagle Cartoon
Mango shares
Media Co., Ltd. by
Media Parent Share of Appraisal Bank October
19,667.92 83,479.51 83,479.51 0 Cash and Related-
Co., company acquisition Golden value transfer 24, 2023
party Transaction
Ltd. Eagle
(Announcement
Cartoon
No.: 2023-046)
disclosed on
www.cninfo.com.cn
on July 26, 2023
Reasons for significant difference
between transfer price and carrying value None.
or appraisal value (if any)
Impact on the Company’s operating
The effect on the net profit of the Listed Company was RMB63,473,700.
results and financial situation
The performance realization during the
The net profit of Golden Eagle Cartoon attributable to the shareholders of the Listed Company after deduction
Reporting Period if the related-party
of non-recurring gain or loss was RMB47,543,200 for the Reporting Period, which achieved its performance
transaction involves performance
commitment for 2023.
agreement
3. Related-party transactions related to joint external investment
□Applicable N/A
The Company has no related-party transactions involving joint external investments during the Reporting Period.
4. Credits and debits with related parties
Applicable □N/A
Whether there are non-operating credits and debits with related parties
Yes □No
Credits due from related parties
Whether Current Current
Opening Current Closing
there is any increased recovered
Reason of balance Interest interest balance
Related-party Relation non- amount amount
formation (RMB0’00 rate (RMB0’00 (RMB0’00
operating (RMB0’00 (RMB0’00
0) 0) 0)
fund use 0) 0)
Mango Accounts
Subsidiary No 8,000 8,000
Entertainment current
Happy Profit
Subsidiary No 30,000 60,000 90,000 0
Sunshine distribution
68
Mango Excellent Media Co., Ltd. Annual Report 2023
Impact of related-party
creditor’s rights on the
No material impact
Company’s operating
results and financial status
Debts due to related-party
Current Current
Opening Current Closing
increased recovered
Related- Reason of balance interest balance
Relation amount amount Interest rate
party formation (RMB0’00 (RMB0’00 (RMB0’00
(RMB0’00 (RMB0’00
0) 0) 0)
0) 0)
5. Transactions with finance companies having related-party relationship
□Applicable N/A
The Company has no deposit, loan, credit facility or other financial business with finance companies having related-party relationship
and related parties.
6. Transactions between finance companies controlled by the Company and related parties
□Applicable N/A
Finance companies controlled by the Company have no deposit, loan, credit facility or other financial business with related parties.
7. Other significant related-party transactions
□Applicable N/A
The Company has no other significant related-party transactions during the Reporting Period.
XV. Significant Contracts and Performances Thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
□Applicable N/A
No such case during the Reporting Period.
(2) Contracting
□Applicable N/A
No such case during the Reporting Period.
(3) Leases
□Applicable N/A
No such case during the Reporting Period.
2. Significant guarantee
□Applicable N/A
69
Mango Excellent Media Co., Ltd. Annual Report 2023
No such case during the Reporting Period.
3. Entrusted management of cash assets
(1) Entrusted wealth management
Applicable □N/A
Overview of entrusted wealth management during the Reporting Period
In RMB0’000
Impaired amount of
Capital sources of
Amount of entrusted Amount overdue wealth management
Specific type entrusted wealth Undue balance
wealth management and not recovered overdue and not
management
recovered
Bank wealth
management Own funds 181,000 45,200 0 0
product
Bank wealth
management Raised funds 209,500 60,000 0 0
product
Total 390,500 105,200 0 0
Details of high-risk entrusted wealth management with significant single amount or poor security and liquidity
□ Applicable N/A
Expected unavailability to recover the principal or other situations that may lead to impairment with respect to entrusted wealth
management
□ Applicable N/A
(2) Entrusted loans
□Applicable N/A
No such case during the Reporting Period.
4. Other significant contracts
□Applicable N/A
No such case during the Reporting Period.
XVI. Description of Other Significant Matters
Applicable □N/A
On July 25, 2023, at the 17th meeting of the 4th Board of Directors and the 15th meeting of the 4th Board of Supervisors, the Proposal
Regarding Acquisition of 100% Shares of Hunan Golden Eagle Cartoon Media Co., Ltd. by Cash and Related-party Transaction was
considered and adopted, approving the acquisition by us of 100% shares of Golden Eagle Cartoon using RMB834,795,100 of self-
owned funds. On October 20, 2023, Golden Eagle Cartoon completed the relevant alteration filing procedures with the administration
for industry and commerce, and became one of our wholly-owned subsidiaries, included in our scope of consolidation. See the
Announcement of Acquisition of 100% Shares of Hunan Golden Eagle Cartoon Media Co., Ltd. by Cash and Related-party Transaction
(Announcement No. 2023-046) and the Announcement of Completion of the Alteration Filing Procedures Related to the Acquisition
of 100% Shares of Hunan Golden Eagle Cartoon Media Co., Ltd. by Cash and Related-party Transaction (Announcement No. 2023-
056) disclosed on www.cninfo.com.cn on July 26, 2023 and October 24, 2023 respectively for details.
XVII. Description of Significant Matters of the Company’s Subsidiaries
Applicable □N/A
70
Mango Excellent Media Co., Ltd. Annual Report 2023
On July 18, 2023, Xiaomang E-commerce completed the relevant alteration filing procedures with the administration for industry and
commerce, and turned from a subsidiary controlled by our wholly-owned subsidiary Happy Sunshine into a subsidiary directly
controlled by us.
71
Mango Excellent Media Co., Ltd. Annual Report 2023
Section VII Share Changes and Information of Shareholders
I. Share changes
1. Share changes
Unit: Shares
Before this change Increase or decrease this time (+,-) After this change
Capitaliza
Proporti New Bonus tion of Proportio
Number Others Sub-total Number
on shares shares capital n
reserve
I. Restricted share 849,020,857 45.38% 0 0 0 0 0 849,020,857 45.38%
1. Shareholdings
0 0.00% 0 0 0 0 0 0 0.00%
by the state
2. Shareholdings
by the state-
849,019,732 45.38% 0 0 0 0 0 849,019,732 45.38%
owned legal
persons
3. Other
shareholdings by
1,125 0.00% 0 0 0 0 0 1,125 0.00%
domestic
investors
Incl.:
shareholdings by
0 0.00% 0 0 0 0 0 0 0.00%
domestic legal
persons
Shareholdings by
domestic natural 1,125 0.00% 0 0 0 0 0 1,125 0.00%
persons
4. Shareholdings
by foreign 0 0.00% 0 0 0 0 0 0 0.00%
investors
Incl.:
shareholdings by
0 0.00% 0 0 0 0 0 0 0.00%
overseas legal
persons
Shareholdings by
overseas natural 0 0.00% 0 0 0 0 0 0 0.00%
persons
II. Unrestricted
1,021,699,958 54.62% 0 0 0 0 0 1,021,699,958 54.62%
share
1. RMB ordinary
1,021,699,958 54.62% 0 0 0 0 0 1,021,699,958 54.62%
share
2. Domestic listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign share
3. Overseas listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign share
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total 1,870,720,815 100.00% 0 0 0 0 0 1,870,720,815 100.00%
Reasons for share changes
□Applicable N/A
Approval of share changes
□Applicable N/A
Description of registration of share changes
72
Mango Excellent Media Co., Ltd. Annual Report 2023
□Applicable N/A
Effect of share changes on financial indicators in the most recent year and the most recent period, such as basic earnings per share,
diluted earnings per share, net assets per share attributable to the Company’s shareholders of ordinary shares
□Applicable N/A
Other information that the Company deemed as necessary, or security regulators require to be disclosed
□Applicable N/A
2. Restricted share changes
□Applicable N/A
II. Shares issuing and listing
1. Securities issuing during the Reporting Period (excluding preferred shares)
□Applicable N/A
2. Explanation for changes in the Company’s total shares, shareholder structure, and structure of assets
and liabilities
□Applicable N/A
3. Current shares subject to employee share ownership plan
□Applicable N/A
III. Shareholders and actual controllers
1. Description of the Number of the Company’s shareholders and shares held by them
Unit: Shares
Total
preferred
shareholders
Total ordinary Total preferred (if any) with
Total
shareholders shareholders recovered
shareholders
Total ordinary as of the end (if any) with voting rights
(if any)
shareholders of the month recovered as of the end
56,718 62,435 0 0 holding 0
as of the end prior to the voting rights of the month
special
of the period disclosure date as of the end prior to the
voting right
of annual of the period disclosure
shares
report (Note 9) date of
annual
report (Note
9)
Information of shareholders holding 5% or more of shares or top 10 shareholders (excluding the shares lent via refinancing)
Closing Number of Number of Pledged, marked or frozen
Name of Nature of Shareholding Increase or
shareholding restricted unrestricted
shareholders shareholder ratio decrease Status Quantity
quantity shares held shares held
Mango Media State-owned
Co., Ltd. corporation 56.09% 1,049,300,301 0 849,019,732 200,280,569 N/A 0
Zhongyi
Capital State-owned
7.01% 131,188,792 0 0 131,188,792 N/A 0
Holding Group corporation
Limited
Hunan Caixin
Jingguo Equity State-owned
5.01% 93,647,857 0 0 93,647,857 N/A 0
Investment corporation
Partnership
73
Mango Excellent Media Co., Ltd. Annual Report 2023
(LP)
Hong Kong
Securities
Foreign
Clearing 3.15% 58,844,957 1,831,245 0 58,844,957 N/A 0
corporation
Company
Limited
China Life
Insurance Co.,
Ltd. –
Traditional –
General Others 0.54% 10,159,284 7,545,157 0 10,159,284 N/A 0
Insurance
Product 005L-
CT001
(Shanghai)
Industrial and
Commercial
Bank of China
Others 0.49% 9,080,876 5,814,380 0 9,080,876 N/A 0
Limited – E-
Fund ChiNext
ETF
Hua Life
Insurance Co.,
Others 0.36% 6,712,900 5,301,700 0 6,712,900 N/A 0
Ltd. – Self-
owned funds
National
Social Security
Others 0.36% 6,643,867 6,373,567 0 6,643,867 N/A 0
Fund Portfolio
604
Dajia Life
Insurance Co.,
Ltd. – Others 0.32% 6,006,700 6,006,700 0 6,006,700 N/A 0
Universal
product
National
Social Security
Others 0.31% 5,799,992 5,799,992 0 5,799,992 N/A 0
Fund Portfolio
414
Strategic investors or general
corporations becoming top 10
ordinary shareholders as a None
result of rights issue (if any)
(Note 4)
Related-party relationship or
There is no related-party relationship or concerted action relationship between Mango Media Co., Ltd. as the controlling shareholder of
concerted action relationship
the Company and other top 10 shareholders; we are not aware whether or not there is a related-party relationship or concerted action
among the aforementioned
relationship among other top 10 shareholders.
shareholders
Explanation for
entrusting/accepting entrusted
voting rights and waiver of None
voting rights regarding above
shareholders
Special explanation about any
special account for repurchase
None
opened by any top 10
shareholder (if any) (Note 10)
Shareholdings of top 10 unrestricted shareholders
Type
Name of shareholders Number of unrestricted shares held at the end of the Reporting Period
Type Number
Mango Media Co., Ltd. 200,280,569 RMB ordinary shares 200,280,569
Zhongyi Capital Holding
131,188,792 RMB ordinary shares 131,188,792
Group Limited
Hunan Caixin Jingguo Equity
93,647,857 RMB ordinary shares 93,647,857
Investment Partnership (LP)
Hong Kong Securities Clearing
58,844,957 RMB ordinary shares 58,844,957
Company Limited
China Life Insurance Co., Ltd.
– Traditional – General
10,159,284 RMB ordinary shares 10,159,284
Insurance Product 005L-CT001
(Shanghai)
Industrial and Commercial
Bank of China Limited – E- 9,080,876 RMB ordinary shares 9,080,876
Fund ChiNext ETF
Hua Life Insurance Co., Ltd. –
6,712,900 RMB ordinary shares 6,712,900
Self-owned funds
National Social Security Fund
6,643,867 RMB ordinary shares 6,643,867
Portfolio 604
74
Mango Excellent Media Co., Ltd. Annual Report 2023
Dajia Life Insurance Co., Ltd.
6,006,700 RMB ordinary shares 6,006,700
– Universal product
National Social Security Fund
5,799,992 RMB ordinary shares 5,799,992
Portfolio 414
Explanation for related-party
relationship or concerted
actions between top 10 There is no related-party relationship or concerted action relationship between Mango Media Co., Ltd. as the controlling shareholder of
unrestricted outstanding the Company and other top 10 unrestricted outstanding shareholders; we are not aware whether or not there is a related-party relationship
shareholders, and between top or concerted action relationship among top 10 unrestricted outstanding shareholders and between top 10 unrestricted outstanding
10 unrestricted outstanding shareholders and top 10 shareholders.
shareholders and top 10
shareholders
Special explanation about any
shareholder operating margin
financing and short selling business
None
(if any) (Note 5)
Share lending by top 10 shares via refinancing:
Applicable □N/A
Unit: Shares
Share lending by top 10 shares via refinancing
Number of shares held in Number e of shares held
Number of outstanding Number of outstanding
ordinary account and in ordinary account and
shares lent via refinancing shares lent via refinancing
margin trading account at margin trading account at
Full name at the beginning of the at the end of the current
the beginning of the the end of the current
of current period period
current period period
shareholder
% of total % of total % of total % of total
Total Total Total Total
share share share share
number number number number
capital capital capital capital
Industrial
and
Commercial
Bank of
China 3,266,496 0.17% 854,600 0.05% 9,080,876 0.49% 140,000 0.01%
Limited –
E-Fund
ChiNext
ETF
National
Social
Security
270,300 0.01% 7,300 0.00% 6,643,867 0.36% 0 0.00%
Fund
Portfolio
604
Changes in top 10 shareholders compared to the prior period:
Applicable □N/A
Unit: Shares
Changes in top 10 shares compared to the end of the prior period
Number of shares held in ordinary account and
Number of outstanding shares lent via margin trading account and outstanding shares
New or withdrawn
Full name of refinancing at the end of the current period lent via refinancing at the end of the current
shareholder in the
shareholder period
current period
% of total share
Total number Total number % of total share capital
capital
China Life Insurance
Co., Ltd. – Traditional
– General Insurance New 0 0.00% 10,159,284 0.54%
Product 005L-CT001
(Shanghai)
Industrial and
Commercial Bank of
New 140,000 0.01% 9,220,876 0.49%
China Limited – E-
Fund ChiNext ETF
Hua Life Insurance
Co., Ltd. – Self-owned New 0 0.00% 6,712,900 0.36%
funds
National Social
Security Fund New 0 0.00% 6,643,867 0.36%
Portfolio 604
75
Mango Excellent Media Co., Ltd. Annual Report 2023
Dajia Life Insurance
Co., Ltd. – Universal New 0 0.00% 6,006,700 0.32%
product
National Social
Security Fund New 0 0.00% 5,799,992 0.31%
Portfolio 414
China Merchants Bank
Co., Ltd. - Xingquan
Herun Hybrid Withdrawn 0 0.00% 0 0.00%
Securities Investment
Fund
China Merchants Bank
Co., Ltd. - Xingquan
Heyi Flexible
Allocation Hybrid
Withdrawn 0 0.00% 0 0.00%
Securities Investment
Fund (LOF)
Industrial and
Commercial Bank of
China Limited -
Xingquan Green Withdrawn 0 0.00% 0 0.00%
Investment Hybrid
Securities Investment
Fund (LOF)
Industrial Bank Co.,
Ltd. - Xingquan Qushi
Investment Hybrid Withdrawn 0 0.00% 0 0.00%
Securities Investment
Fund
China Merchants Bank
Co., Ltd. - Xingye
Xingrui 2-Year Hybrid Withdrawn 0 0.00% 0 0.00%
Securities Investment
Fund
Industrial and
Commercial Bank of
China Limited - GF Withdrawn 0 0.00% 5,033,661 0.27%
China Securities
Media LOF
Whether the Company has made arrangement for voting right differences?
□Applicable N/A
Whether the Company’s top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders have engaged in an agreed
repurchase transaction during the Reporting Period?
□Yes No
The Company’s top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders have no agreed repurchase transaction
during the Reporting Period.
2. Controlling shareholder of the Company
Nature of the controlling shareholder: Local state-owned holding company
Type of the controlling shareholder Legal person
Legal
Controlling
representative/responsi Date of incorporation Organization code Principal activities
shareholder
ble person
Planning, production
and operation of radio
and television
programs; investments
in culture, sports,
Mango Media Co., Ltd. ZHANG Huali July 10, 2007 914300006707880875
entertainment, media,
technology, Internet
and other industries by
self-owned funds
(excluding national
76
Mango Excellent Media Co., Ltd. Annual Report 2023
financial supervision
and financial credit
businesses such as
deposit absorption,
fund collection,
entrusted loans, notes,
and loans issuance);
advertising planning,
production and
operation; multimedia
technology
development and
operation. (Projects
required for legal
approval shall be
operated on the
premise of being
approved by relevant
authorities)
Shares held in other
domestic or foreign
listed companies
controlled or invested None
by the controlling
shareholder during the
Reporting Period
Change of the controlling shareholder during the Reporting Period
□Applicable N/A
There was no change in the controlling shareholder of the Company during the Reporting Period.
3. Actual controller and its acting-in-concert parties of the Company
Nature of the actual controller: Local state capital management institution
Type of the controlling shareholder: Legal person
Legal
Actual controller representative/responsi Date of incorporation Organization code Principal activities
ble person
Hunan State-owned Perform the
Cultural Assets responsibilities of
Supervision and - May 27, 2015 - provincial state-owned
Administration cultural enterprise as a
Commission contributor
Equity of other
domestic and oversea
listed companies
Directly holding 16.66% of shares in Hunan TV & Broadcast Intermediary Co., Ltd.
controlled by the actual
controller during the
Reporting Period
Change of the actual controller during the Reporting Period
□Applicable N/A
There was no change in the actual controller of the Company during the Reporting Period.
Block diagram for the ownership and controlling relationship between the Company and the actual controller
77
Mango Excellent Media Co., Ltd. Annual Report 2023
Hunan State-owned Cultural Assets Supervision and
Administration Commission
100% shares
Golden Eagle Broadcasting System Co., Ltd.
100 % shares
Mango Media Co., Ltd.
56.09 % shares
Mango Excellent Media Co., Ltd.
\
The Company is controlled by the actual controller through trust funds or other asset management methods
□Applicable N/A
4. The Company’s controlling shareholder or top 1 shareholder and its acting-in-concert parties pledged
more than 80% in total of the Company’s shares held by them
□Applicable N/A
5. Other institutional shareholders owning over 10% of shares
□Applicable N/A
6. Restrictions on shareholding reduction of the controlling shareholder, actual controller, restructuring
parties, and other commitment subjects
□Applicable N/A
IV. Specific implementation of share repurchases during the Reporting Period
Implementation progress of share repurchase
□Applicable N/A
Progress of reducing repurchased shares by means of centralized auction trading
□Applicable N/A
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Mango Excellent Media Co., Ltd. Annual Report 2023
Section VIII Preference Shares
□Applicable N/A
The Company has no preferred shares during the Reporting Period.
79
Mango Excellent Media Co., Ltd. Annual Report 2023
Section IX Bonds
□Applicable N/A
80
Mango Excellent Media Co., Ltd. Annual Report 2023
Section X Financial Report
I. Auditor’s Report
Audit opinion Unmodified Opinion
Signing date of audit report April 18, 2024
Auditor Pan-China Certified Public Accountants LLP
Audit report document No. Tian Jian Shen (2024) 2-191
Name of certified public accountants ZHENG Shengjun and HU Jian
Auditor’s Report
To all shareholders of Mango Excellent Media Co., Ltd.:
I. Audit opinion
We have audited the financial statements of Mango Excellent Media Co., Ltd. (“Mango Excellent Media”), which comprise the
consolidated and the parent company’s balance sheets as at December 31, 2023, and the consolidated and the parent company’s income
statements, the consolidated and the parent company’s statements of cash flow and the consolidated and the parent company’s
statements of changes in owners’ equity for the year then ended, and the notes to the financial statements.
In our opinion, the accompanying financial statements are prepared in all material respects in accordance with Accounting
Standards for Business Enterprises and fairly present the consolidated and the parent company’s financial position as of December 31,
2023, and the consolidated and the parent company’s operating results and cash flows for the year then ended.
II. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further
described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of
Mango Excellent Media in accordance with the Code of Ethics for Chinese Institute of Certified Public Accountants (“the Code”), and
we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, are of most significance in our audit of the financial
statements for the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not express a separate opinion on these matters.
(I) Revenue recognition
1. Descriptions
Details of relevant information are disclosed in Note III (XXIII), V(II)1 and XIV(I) to the financial statements.
The operating revenue of Mango Excellent Media is mainly from new media platform operation, new media interactive
entertainment content production and media retail, etc. In 2023, the operating revenue of Mango Excellent Media amounted to
RMB14,628,016,300, of which the operating revenue from the segments including new media platform operation and new media
interactive entertainment content production amounted to RMB11,763,971,400, accounting for 80.42 % thereof.
As the operating revenue is one of Mango Excellent Media’s KPIs, there may be an inherent risk that the management of Mango
Excellent Media (“management”) may recognize the revenue inappropriately to achieve specific objectives or expectations. Meanwhile,
revenue recognition also needs complex information systems and significant management judgment. Therefore, we identified revenue
recognition as a key audit matter.
2. Audit response
Our audit procedures related to revenue recognition included the following, among others:
(1) Understand the key internal controls related to revenue recognition, evaluate the design of those controls, determine whether
they are implemented, and test the operational effectiveness of the relevant internal controls;
(2) Test general information system controls and application controls related to the revenue recognition process by virtue of the
work results of the in-house information technology experts;
(3) Examine major sales contracts, understand the major terms or conditions thereof, and evaluate whether revenue recognition
methods are proper;
(4) Implement substantive analysis procedures for operating revenue and gross margin by month, product, customer, etc., to
identify whether there are significant or unusual fluctuations and to find out the causes of such fluctuations;
(5) Sample contracts, licenses, settlements, receipts and sign-offs to make test of details according to different types of revenues,
and pay attention to the business content of the related sales and their commercial reasonableness;
(6) In conjunction with accounts receivable confirmation procedures, send confirmation to major customers to recognize the
current sale volumes on a sample basis;
(7) Conduct the cut-off test on the operating revenues recognized about the balance sheet date to evaluate whether the operating
revenues are recognized appropriately;
(8) Obtain a record of sales returns after the balance sheet date to check if there is any instance that conditions for revenue
recognition were not met at the balance sheet date; and
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Mango Excellent Media Co., Ltd. Annual Report 2023
(9) Check whether information relating to operating revenue is properly presented and disclosed in the financial statements.
(II) Recognition of deferred tax assets
1. Descriptions
Details of relevant information are disclosed in Note III(XXVII), Note III(XXX) and Note V(I)18 to the financial statements.
As of December 31, 2023, Mango Excellent Media recognized RMB1,628,790,200 of deferred tax assets for the year 2023, mainly
arising from temporary differences between the accounting amortization approach for film and TV drama copyright and the
amortization approach set forth in tax law. Since the recognition of deferred tax assets involves complicated calculation of differences
between the accounting amortization approach for film and TV drama copyright and the amortization approach set forth in tax law, the
judgment of the availability of taxable income in future periods against which the deductible temporary differences can be utilized
involves estimates, and the recognition of deferred tax assets has a significant on accounting profit, we identified the recognition of
deferred tax assets as a critical audit matter.
2. Audit response
Our audit procedures related to recognition of deferred tax assets included the following, among others:
(1) Assess the design and implementation, and test the effectiveness, of internal controls related to recognition of deferred tax
assets;
(2) Understand and evaluate the management’s calculation methods for the differences between the accounting amortization
approach for film and TV drama copyright and the amortization approach set forth in tax law, and reasonableness of forecast and
assumptions in respect of taxable income available in future periods;
(3) Review the process of calculation of deferred tax assets, and ensure they are accurate and comply with the provisions of the
tax law and accounting standards;
(4) Analyze and assess the temporary differences related to film and TV drama copyright, and review the historic data, assess the
sustainability of forecasts and changes in the relevant tax laws and regulations; and
(5) Communicate with the tax advisor, to obtain professional opinions on the relevant tax law, and assess the effect on the
recognition of deferred tax assets.
(III) The carrying amount of content copyrights
1. Descriptions
Details of relevant information are disclosed in Note III (XIII), Note III (XVIII) and Note V (I) 8 and Note V (I) 15 to the financial
statements.
As of December 31, 2023, the carrying amount of Mango Excellent Media’s content copyrights such as online information
dissemination rights, screenplays, and film and television series was RMB9,445,987,200; of which, intangible assets were
RMB7,814,463,500 and stocks were RMB1,631,523,700.
The management makes significant judgment to evaluate the carrying amount of content copyrights such as online information
dissemination rights, screenplays, and film and television series. In making such evaluation, the management considers all possible
factors that may affect the future broadcasting, production and distribution plans of the content copyrights such as the online
information dissemination rights, screenplays and film and television series, the saleable or booking prices of film and television series,
the discount rate and the current market environment to judge the expectation of obtaining future cash flows. The amount of content
copyrights such as online information dissemination rights, screenplays, and film and television series is material, and involves
significant management judgments, therefore, we identify the carrying amount of content copyrights such as online information
dissemination rights, screenplays, and film and television series as a key audit matter.
2. Audit response
For the carrying amount of content copyrights such as online information dissemination rights, screenplays, and film and television
series, our audit procedures include, inter alia:
(1) Understand the key internal controls related to content copyrights such as online information dissemination rights, screenplays,
and film and television series, evaluate the design of those controls, determine whether they are implemented, and test the operational
effectiveness of the relevant internal controls;
(2) Know and evaluate the reasonableness of amortization policies of online information dissemination rights, and implement
computer-aided audit procedure for amortization information system of online information dissemination rights;
(3) Evaluate the reasonableness of accounting policies related to content copyrights such as online information dissemination
rights, screenplays, and film and television series by comparing relevant accounting standards and industry practice benchmarks, and
test the management’s assessment of the recoverable amount of content copyrights such as online information dissemination rights,
screenplays, and film and television series on a project basis based on the materiality level of the closing balance of net value of content
copyrights such as online information dissemination rights, screenplays, and film and television series;
(4) Inspect selected relevant agreements for the purchase of content copyrights such as online information dissemination rights,
and screenplays, and verify the valid period of their licenses to evaluate the reasonableness of their net realizable values. For self-
produced film and television series, select projects and discuss with the management to understand the current market environment,
their future production and distribution plans;
(5) Inspect distribution contracts to verify the estimated selling price of content rights such as online information dissemination
rights, screenplays, and film and television series. For television series that have been produced but have not obtained broadcast licenses,
we select projects to compare their projected selling prices with the selling prices available to similar television series, so as to assess
their impairment;
(6) Pay attention to public opinion of content rights such as online information dissemination rights, screenplays, and film and
television series, assessing their negative public opinion and discussing with the management that whether there is an expected
withdrawal or failure to complete production;
(7) Check whether information relating to impairment and copyright amortization of content rights such as online information
dissemination rights, screenplays, and film and television series is properly presented and disclosed in the financial statements;
IV. Other Information
The management is responsible for other information. The other information comprises the information included in the Annual
82
Mango Excellent Media Co., Ltd. Annual Report 2023
Report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is any material misstatement of other information, we are required
to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The management of Mango Excellent Media is responsible for the preparation and fair presentation of the financial statements in
accordance with Accounting Standards for Business Enterprises, and designing, implementing, and maintaining internal control that is
necessary to enable the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing Mango Excellent Media’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the management either intends to liquidate Mango Excellent Media or to cease operations, or have no realistic alternative but to do so.
Those charged with governance of Mango Excellent Media (“those charged with governance”) are responsible for overseeing
Mango Excellent Media’s financial reporting process.
VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion solely to you. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with China Standards on Auditing
will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with China Standards on Auditing, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
(IV) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Mango
Excellent Media’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Mango Excellent Media to cease to continue as a going concern.
(V) Evaluate the overall presentation, structure, and content of the financial statements and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation;
(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities
within the Mango Excellent Media to express an opinion on the financial statements. We are responsible for the direction, supervision,
and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements for the current period and are therefore key audit matters. We describe these matters in our audit
report unless laws or regulations preclude public disclosure of the matter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Pan-China Certified Public Accountants LLP Certified Public Accountant: ZHENG Shengjun
(Engagement Partner)
Hangzhou, China Certified Public Accountant: HU Jian
April 18, 2024
83
Mango Excellent Media Co., Ltd. Annual Report 2023
II. Financial Statements
Statements in notes to the financial statements are dominated in RMB.
1. Consolidated balance sheet
Prepared by: Mango Excellent Media Co., Ltd.
December 31, 2023
In RMB
Item December 31, 2023 January 1, 2023
Current assets:
Cash and bank balances 11,882,208,257.60 10,369,682,100.19
Balances with clearing agencies
Placements with banks and other
financial institutions
Held-for-trading financial assets 1,052,000,000.00 2,695,000,000.00
Derivative financial assets
Notes receivable 34,920,000.00 1,424,539,500.76
Accounts receivable 3,496,523,370.15 3,239,435,040.40
Receivable financing 698,394,858.57 49,054,442.19
Prepayments 1,016,664,374.18 1,661,390,146.29
Premium receivable
Amounts receivable under reinsurance
contracts
Reinsurer’s share of insurance contract
reserves
Other receivables 47,852,640.07 57,117,565.37
Incl.: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 1,717,435,689.33 1,608,818,863.16
Contract assets 838,691,849.14 929,403,936.51
Held-for-sale assets
Non-current assets due within one year
Other current assets 130,178,232.12 113,462,529.80
Total current assets 20,914,869,271.16 22,147,904,124.67
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 4,123,864.73
Other investments in equity
instruments
84
Mango Excellent Media Co., Ltd. Annual Report 2023
Other non-current financial assets
Investment properties 81,084,052.23 83,381,033.60
Fixed assets 142,419,568.37 173,715,579.21
Construction in progress
Bearer biological assets
Oil and gas assets
Right-of-use assets 228,587,413.61 180,794,786.22
Intangible assets 8,113,877,366.31 6,968,001,679.08
Development expenditure 241,848,656.69 101,832,746.23
Goodwill
Long-term prepaid expenses 69,653,104.00 88,341,119.22
Deferred tax assets 1,628,790,218.38 6,782.33
Other non-current assets 1,257,003.74 35,450,007.57
Total non-current assets 10,507,517,383.33 7,635,647,598.19
Total assets 31,422,386,654.49 29,783,551,722.86
Current liabilities:
Bank borrowings 33,781,325.60 1,057,932,476.80
Loans from the central bank
Taking from banks and other financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,714,493,274.32 1,641,001,844.25
Accounts payable 5,211,653,685.68 4,929,885,871.44
Receipts in advance
Contract liabilities 1,223,382,815.57 1,095,959,210.88
Financial assets sold under repurchase
agreements
Customer deposits and deposits from
banks and other financial institutions
Funds from securities trading agency
Funds from underwriting securities
agency
Employee benefits payable 1,133,198,261.73 1,019,793,590.40
Taxes payable 271,158,208.58 208,468,050.32
Other payables 118,868,606.40 508,775,724.99
Incl.: Interest payable
Dividends payable 310,000,000.00
Fees and commissions payable
Amounts payable under reinsurance
contracts
Held-for-sale liabilities
Non-current liabilities due within one
63,380,220.77 52,927,194.87
year
85
Mango Excellent Media Co., Ltd. Annual Report 2023
Other current liabilities 90,565,321.21 108,136,216.45
Total current liabilities 9,860,481,719.86 10,622,880,180.40
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable
Incl.: Preference shares
Perpetual bonds
Lease liabilities 151,809,003.34 138,344,104.72
Long-term payables
Long-term employee benefits payable
Estimated liabilities 3,156,100.00 9,038,875.00
Deferred income 43,207,716.48 42,775,997.77
Deferred tax liabilities 94,340.19 227,428.11
Other non-current liabilities
Total non-current liabilities 198,267,160.01 190,386,405.60
Total liabilities 10,058,748,879.87 10,813,266,586.00
Owner’s equity:
Share capital 1,870,720,815.00 1,870,720,815.00
Other equity instruments
Incl.: Preference shares
Perpetual bonds
Capital reserve 8,811,414,997.63 9,646,210,097.63
Less: Treasury shares
Other comprehensive income 172,058.22 157,436.90
Special reserve
Surplus reserve 179,622,015.26 126,108,937.21
General risk reserve
Undistributed profit 10,630,492,900.32 7,371,494,125.42
Total equity attributable to owners of the
21,492,422,786.43 19,014,691,412.16
parent company
Minority interests -128,785,011.81 -44,406,275.30
Total owners’ equity 21,363,637,774.62 18,970,285,136.86
Total liabilities and owners’ equity 31,422,386,654.49 29,783,551,722.86
Legal representative: CAI Huaijun CFO: ZHANG Zhihong Chief Accountant: TAO Jinyu
2. Balance sheet of the parent company
In RMB
Item December 31, 2023 January 1, 2023
Current assets:
Cash and bank balances 282,978,984.89 536,508,258.51
Held-for-trading financial assets
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Mango Excellent Media Co., Ltd. Annual Report 2023
Derivative financial assets
Notes receivable
Accounts receivable
Receivable financing
Prepayments 1,585,821.83 23,629.23
Other receivables 80,009,604.19 380,020,000.00
Incl.: Interest receivable
Dividends receivable 300,000,000.00
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 5,647,818.59 4,739,926.06
Total current assets 370,222,229.50 921,291,813.80
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 12,173,055,024.52 11,976,375,839.55
Other investments in equity
instruments
Other non-current financial assets
Investment properties
Fixed assets 228,497.46 438,682.49
Construction in progress
Bearer biological assets
Oil and gas assets
Right-of-use assets 5,351,417.43 7,135,223.31
Intangible assets 599,408.36 696,395.36
Development expenditure
Goodwill
Long-term prepaid expenses 3,056,182.69 3,920,863.29
Deferred tax assets
Other non-current assets
Total non-current assets 12,182,290,530.46 11,988,567,004.00
Total assets 12,552,512,759.96 12,909,858,817.80
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable
Receipts in advance
87
Mango Excellent Media Co., Ltd. Annual Report 2023
Contract liabilities
Employee benefits payable 49,039,181.88 54,779,216.00
Taxes payable 1,072,123.90 429,648.09
Other payables 14,345,469.63 18,721,165.76
Incl.: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one
1,773,647.85 1,693,962.89
year
Others Current liabilities
Total current liabilities 66,230,423.26 75,623,992.74
Non-current liabilities:
Long-term borrowings
Bonds payable
Incl.: Preference shares
Perpetual bonds
Lease liabilities 4,010,907.98 5,784,555.83
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 4,010,907.98 5,784,555.83
Total liabilities 70,241,331.24 81,408,548.57
Owner’s equity:
Share capital 1,870,720,815.00 1,870,720,815.00
Other equity instruments
Incl.: Preference shares
Perpetual bonds
Capital reserve 9,946,666,892.53 10,584,782,807.56
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 179,622,015.26 126,108,937.21
Undistributed profit 485,261,705.93 246,837,709.46
Total owners’ equity 12,482,271,428.72 12,828,450,269.23
Total liabilities and owners’ equity 12,552,512,759.96 12,909,858,817.80
3. Consolidated income statement
In RMB
Item 2023 2022
88
Mango Excellent Media Co., Ltd. Annual Report 2023
I. Total operating revenue 14,628,016,301.84 13,976,774,034.92
Incl.: Operating revenue 14,628,016,301.84 13,976,774,034.92
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 12,906,257,244.76 12,305,534,748.08
Incl.: Operating cost 9,803,006,894.94 9,208,080,123.07
Interest expenses
Fee and commission expenses
Surrenders
Claims and policyholder benefits
(net of amounts recoverable from
reinsurers)
Net withdrawal of insurance
contract reserves
Insurance policyholder
dividends
Expenses for reinsurance
accepted
Taxes and surcharges 100,115,217.83 90,965,838.45
Selling expenses 2,260,065,273.97 2,244,824,328.98
Administrative expenses 612,009,007.33 646,502,018.06
R&D expenses 278,728,244.78 257,607,242.41
Financial expenses -147,667,394.09 -142,444,802.89
Incl.: Interest expenses 23,068,674.36 20,141,897.51
Interest income 208,888,917.13 200,121,015.01
Add: Other income 122,924,507.92 127,463,901.62
Investment income (loss is
73,236,767.58 133,063,862.35
indicated by “-”)
Incl.: Income from
investments in associates and joint -4,123,864.73 -2,576,746.69
ventures
Income from
derecognition of financial assets
measured at amortized cost
Foreign exchange gains (loss is
indicated by “-”)
Net exposure hedging income
(loss is indicated by “-”)
Gains from changes in fair value
(loss is indicated by “-”)
Credit loss (loss is indicated by
-67,536,455.57 -118,469,952.32
“-”)
Impairment losses of assets (loss
-32,524,584.01 -49,744,224.16
is indicated by “-”)
Gains from disposal of assets
1,171,623.19 891,438.70
(loss is indicated by “-”)
89
Mango Excellent Media Co., Ltd. Annual Report 2023
III. Operating profit (loss is indicated by
1,819,030,916.19 1,764,444,313.03
“-”)
Add: Non-operating revenue 35,532,003.82 45,628,450.37
Less: Non-operating expenses 4,005,884.29 4,490,381.74
IV. Total profit (total losses are indicated
1,850,557,035.72 1,805,582,381.66
by “-”)
Less: Income tax expense -1,620,769,786.67 76,071.59
V. Net profit (net loss is indicated by
3,471,326,822.39 1,805,506,310.07
“-” )
(I) Categorized by the nature of
continuing operation
1. Net profit from continuing
3,471,326,822.39 1,805,506,310.07
operations (net loss is indicated by “-”)
2. Net profit from discontinued
operations (net loss is indicated by “-”)
(II) Categorized by ownership
1. Net profit attributable to
3,555,705,558.90 1,864,245,432.69
shareholders of the parent company
2. Profit or loss attributable to
-84,378,736.51 -58,739,122.62
minority interests
VI. Other comprehensive income, net of
14,621.32 171,220.08
tax
Other comprehensive income
attributable to owners of the parent 14,621.32 171,220.08
company, net of tax
(I) Other comprehensive income
that cannot be subsequently reclassified
to profit or loss
1. Changes from re-measurement
of defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
3. Changes in fair value of other
investments in equity instruments
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
14,621.32 171,220.08
that will be reclassified to profit or loss
1. Other comprehensive income
that will be reclassified to profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
90
Mango Excellent Media Co., Ltd. Annual Report 2023
of other debt investments
5. Reserve for cash flow hedges
6. Translation differences of
financial statements denominated in 14,621.32 171,220.08
foreign currencies
7. Others
Other comprehensive income
attributable to minority interests, net of
tax
VII. Total comprehensive income 3,471,341,443.71 1,805,677,530.15
Total comprehensive income
attributable to owners of the parent 3,555,720,180.22 1,864,416,652.77
company
Total comprehensive income
-84,378,736.51 -58,739,122.62
attributable to minority interests
VIII. Earnings per share
(I) Basic earnings per share 1.90 1.00
(II) Diluted earnings per share 1.90 1.00
With respect to the business mergers involving entities under common control consummated in the current period, the net profit of the
acquirees was RMB32,481,963.81 prior to the merger, and RMB39,292,296.69 in the prior period.
Legal representative: CAI Huaijun CFO: ZHANG Zhihong Chief Accountant: TAO Jinyu
4. Income statement of the parent company
In RMB
Item 2023 2022
I. Operating revenue 11,056.00 18,867.92
Less: Operating cost 0.00 0.00
Taxes and surcharges 423,344.58 2,099.24
Selling expenses
Administrative expenses 79,347,994.13 101,887,298.84
R&D expenses
Financial expenses -14,858,117.90 -12,545,424.65
Incl.: Interest expenses 328,285.09 401,132.83
Interest income 15,190,882.99 12,954,190.78
Add: Other income 15,041.29 84,643.52
Investment income (loss is
600,000,000.00 300,000,000.00
indicated by “-”)
Incl.: Income from investments
in associates and joint ventures
Income from
derecognition of financial assets
measured at amortized cost (loss is
indicated by “-”)
Net exposure hedging income
(loss is indicated by “-”)
Gains from changes in fair value
(loss is indicated by “-”)
Impairment losses of credit (loss
-97.01 1,001.18
is indicated by “-”)
Impairment losses of assets (loss
is indicated by “-”)
Gains from disposal of assets
(loss is indicated by “-”)
II. Operating profit (loss is indicated by 535,112,779.47 210,760,539.19
91
Mango Excellent Media Co., Ltd. Annual Report 2023
“-”)
Add: Non-operating revenue 18,001.00 75,000.00
Less: Non-operating expenses
III. Total profit (total loss is indicated by
535,130,780.47 210,835,539.19
“﹣”)
Less: Income tax expense
IV. Net profit (net loss is indicated by
535,130,780.47 210,835,539.19
“-” )
(I) Net profit from continuing
535,130,780.47 210,835,539.19
operations (net loss is indicated by “-”)
(II) Net profit from discontinued
operations (net loss is indicated by “-”)
V. Other comprehensive income, net of
tax
(I) Other comprehensive income
that cannot be subsequently reclassified
to profit or loss
1. Changes from re-measurement
of defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
3. Changes in fair value of other
investments in equity instruments
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss
1. Other comprehensive income
that will be reclassified to profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of other debt investments
5. Reserve for cash flow hedges
6. Translation differences of
financial statements denominated in
foreign currencies
7. Others
VI. Total comprehensive income 535,130,780.47 210,835,539.19
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated statements of cash flows
In RMB
Item 2023 2022
I. Cash flows from operating activities:
Cash receipts from the sale of goods
14,115,387,393.70 13,095,415,217.09
and the rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from the central
bank
Net increase in taking from banks and
other financial institutions
92
Mango Excellent Media Co., Ltd. Annual Report 2023
Cash receipts from premiums under
direct insurance contracts
Net cash receipts from reinsurance
business
Net cash receipts from policyholders’
deposits and investment contract
liabilities
Cash receipts from interest, fees and
commissions
Net increase in taking from banks and
other financial institutions
Net increase in financial assets sold
under repurchase arrangements
Net cash received from securities
trading agency
Receipts of tax refunds 8,609,557.50 30,895,444.30
Other cash receipts relating to
394,108,040.56 447,974,990.68
operating activities
Sub-total of cash inflows from operating
14,518,104,991.76 13,574,285,652.07
activities
Cash payments for goods purchased
9,748,214,137.91 9,318,836,426.27
and services received
Net increase in loans and advances to
customers
Net increase in balance with the
central bank and due from banks and
other financial institutions
Cash payments for claims and
policyholders’ benefits under direct
insurance contracts
Net increase in placements with banks
and other financial institutions
Cash payments for interest, fees and
commissions
Cash payments for insurance
policyholder dividends
Cash payments to and on behalf of
1,493,967,167.82 1,616,052,857.07
employees
Payment of various types of taxes 292,315,607.94 205,306,601.01
Other cash payments relating to
1,899,834,821.38 1,812,286,068.28
operating activities
Sub-total of cash outflows from
13,434,331,735.05 12,952,481,952.63
operating activities
Net cash flows from operating activities 1,083,773,256.71 621,803,699.44
II. Cash flows from investing activities:
Cash receipts from disposals and
recovery of investments
Cash receipts from investment income
Net cash receipts from disposals of
fixed assets, intangible assets and other 225,533.85 173,531.48
long-term assets
Net cash receipts from disposals of
subsidiaries and other business entities
Other cash receipts relating to
7,219,275,772.73 14,218,668,535.75
investing activities
Sub-total of cash inflows from investing
7,219,501,306.58 14,218,842,067.23
activities
Cash payments to acquire or construct
fixed assets, intangible assets and other 150,261,073.92 189,897,809.91
long-term assets
Cash payments to acquire investments
Net increase in pledged loans
receivable
Net cash payments for acquisitions of
834,795,100.00
subsidiaries and other business entities
93
Mango Excellent Media Co., Ltd. Annual Report 2023
Other cash payments relating to
5,478,000,000.00 13,371,990,000.00
investing activities
Sub-total of cash outflows from investing
6,463,056,173.92 13,561,887,809.91
activities
Net cash flows from investment activities 756,445,132.66 656,954,257.32
III. Cash flows from financing activities:
Cash receipts from investments by
315,693,346.30
others
Incl.: Cash received by subsidiaries
286,000,000.00
from minority shareholders’ investments
Cash receipts from borrowings 679,622,361.64 1,607,632,088.23
Other cash receipts relating to
financing activities
Sub-total of cash inflows from financing
679,622,361.64 1,923,325,434.53
activities
Cash repayments of borrowings 296,562,773.00 39,051,360.40
Cash payments for distribution of
dividends or profits or settlement of 555,137,003.35 255,759,728.90
interest expenses
Incl.: Dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to
146,238,041.16 96,719,804.50
financing activities
Sub-total of cash outflows from
997,937,817.51 391,530,893.80
operating activities
Net cash flows from financing activities -318,315,455.87 1,531,794,540.73
IV. Effect of foreign exchange rate
94,337.15 458,406.76
changes on cash and cash equivalents
V. Net increase in cash and cash
1,521,997,270.65 2,811,010,904.25
equivalents
Add: Opening balance of cash and
10,345,319,073.78 7,534,308,169.53
cash equivalents
VI. Closing balance of cash and cash
11,867,316,344.43 10,345,319,073.78
equivalents
6. Statement of cash flows of the parent company
In RMB
Item 2023 2022
I. Cash flows from operating activities:
Cash receipts from the sale of goods
and the rendering of services
Receipts of tax refunds
Other cash receipts relating to
22,753,060.50 17,332,962.40
operating activities
Sub-total of cash inflows from operating
22,753,060.50 17,332,962.40
activities
Cash payments for goods purchased
and services received
Cash payments to and on behalf of
58,220,694.58 52,213,840.99
employees
Payment of various types of taxes 5,947.03 2,099.24
Other cash payments relating to
38,515,544.95 26,017,975.33
operating activities
Sub-total of cash outflows from
96,742,186.56 78,233,915.56
operating activities
Net cash flows from operating activities -73,989,126.06 -60,900,953.16
II. Cash flows from investing activities:
Cash receipts from disposals and
recovery of investments
Cash receipts from investment income 900,000,000.00 250,000,000.00
Net cash receipts from disposals of
fixed assets, intangible assets and other
94
Mango Excellent Media Co., Ltd. Annual Report 2023
long-term assets
Net cash receipts from disposals of
subsidiaries and other business entities
Other cash receipts relating to
investing activities
Sub-total of cash inflows from investing
900,000,000.00 250,000,000.00
activities
Cash payments to acquire or construct
fixed assets, intangible assets and other 158,535.05 497,131.58
long-term assets
Cash payments to acquire investments 834,795,100.00
Net cash payments for acquisitions of
subsidiaries and other business entities
Other cash payments relating to
investing activities
Sub-total of cash outflows from investing
834,953,635.05 497,131.58
activities
Net cash flows from investment activities 65,046,364.95 249,502,868.42
III. Cash flows from financing activities:
Cash receipts from investments by
others
Cash receipts from borrowings
Other cash receipts relating to
financing activities
Sub-total of cash inflows from financing
activities
Cash repayments of borrowings
Cash payments for distribution of
dividends or profits or settlement of 243,193,705.95 243,193,705.95
interest expenses
Other cash payments relating to
2,204,250.30 2,099,286.00
financing activities
Sub-total of cash outflows from
245,397,956.25 245,292,991.95
operating activities
Net cash flows from financing activities -245,397,956.25 -245,292,991.95
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-254,340,717.36 -56,691,076.69
equivalents
Add: Opening balance of cash and
536,508,258.51 593,199,335.20
cash equivalents
VI. Closing balance of cash and cash
282,167,541.15 536,508,258.51
equivalents
7. Consolidated statement of changes in owners’ equity
Amount in the current period
In RMB
2023
Equity attributable to owners of the parent company
Other equity
Item Other
instruments Less: General Minority
Share Capital compreh Special Surplus Undistribu Other Sub- Total owners’ equity
Prefer Perpet Treasury risk interests
capital reserve ensive reserve reserve ted profits s total
ence ual Others shares reserve
income
shares bonds
19,014,6 -
I. Closing balance of the 1,870,720, 9,646,21 157,436. 126,108, 7,371,494,
preceding year 91,412.1 44,406,27 18,970,285,136.86
815.00 0,097.63 90 937.21 125.42
6 5.30
Add: Changes in
accounting policies
Corrections of prior period
errors
Others
II. Opening balance of the
current year 1,870,720, 9,646,21 157,436. 126,108, 7,371,494, 19,014,6 - 18,970,285,136.86
95
Mango Excellent Media Co., Ltd. Annual Report 2023
815.00 0,097.63 90 937.21 125.42 91,412.1 44,406,27
6 5.30
III. Changes for the year - -
14,621.3 53,513,0 3,258,998, 2,477,73
(decrease is indicated by 834,795, 84,378,73 2,393,352,637.76
“-”) 2 78.05 774.90 1,374.27
100.00 6.51
-
(I) Total comprehensive 14,621.3 3,555,705, 3,555,72
income 84,378,73 3,471,341,443.71
2 558.90 0,180.22
6.51
(II) Owners’ contributions
and reduction in capital
1． Ordinary shares
contributed by owners
2．Capital contribution
from holders of other
equity instruments
3. Share-based payment
recognized in owners’
equity
4. Others
- -
53,513,0
(III) Profit distribution 296,706,7 243,193, -243,193,705.95
78.05
84.00 705.95
-
1. Transfer to surplus 53,513,0
reserve 53,513,07
78.05
8.05
2. Transfer to general risk
reserve
- -
3. Distributions to owners
(shareholders) 243,193,7 243,193, -243,193,705.95
05.95 705.95
4. Others
(IV) Transfers within
owners’ equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4.Retained earnings carried
forward from changes in
defined benefit plans
5. Retained earnings
carried forward from other
comprehensive income
6.Others
(V) Special reserve
1. Transfer to special
reserve in the period
2. Amount utilized in the
period
- -
(VI) Others 834,795, 834,795, -834,795,100.00
100.00 100.00
21,492,4 -
IV. Closing balance of the 1,870,720, 8,811,41 172,058. 179,622, 10,630,49
current period 22,786.4 128,785,0 21,363,637,774.62
815.00 4,997.63 22 015.26 2,900.32
3 11.81
Amount in the prior period
In RMB
2022
Equity attributable to owners of the parent company
Other equity
Item Other
instruments Less: General Undistri Minority Total owners’
Share Capital compre Special Surplus Sub-
Prefer Perpet Treasur risk buted Others interests equity
capital reserve hensive reserve reserve total
ence ual Others y shares reserve profits
income
shares bonds
I. Closing balance of the 1,870,720, 9,244,3 - 105,025 5,746,28 16,966, 30,763,885. 16,997,164,244.07
96
Mango Excellent Media Co., Ltd. Annual Report 2023
preceding year 815.00 86,503. 13,783. ,383.29 1,439.57 400,358 84
55 18 .23
- -
Add: Changes in
accounting policies 247,845. 247,845 -20,010.03 -267,855.88
85 .85
Corrections of prior
period errors
61,645, 346,036, 407,681
Others 407,681,647.73
488.85 158.88 ,647.73
9,306,0 - 17,373,
II. Opening balance of 1,870,720, 105,025 6,092,06 30,743,875.
the current year 31,992. 13,783. 834,160 17,404,578,035.92
815.00 ,383.29 9,752.60 81
40 18 .11
III. Changes for the year 1,640,8 -
340,178 171,220 21,083, 1,279,42
(decrease is indicated by 57,252. 75,150,151. 1,565,707,100.94
“-”) ,105.23 .08 553.92 4,372.82
05 11
1,864,4 -
(I) Total comprehensive 171,220 1,864,24
income 16,652. 58,739,122. 1,805,677,530.15
.08 5,432.69
77 62
(II) Owners’ -
340,178 340,178
contributions and 16,411,028. 323,767,076.74
reduction in capital ,105.23 ,105.23
49
1． Ordinary shares 37,767, 37,767,
37,767,076.74
contributed by owners 076.74 076.74
2．Capital contribution
from holders of other
equity instruments
3. Share-based payment
recognized in owners’
equity
-
302,411, 302,411
4. Others 16,411,028. 286,000,000.00
028.49 ,028.49
49
- -
21,083,
(III) Profit distribution 584,821, 563,737 -563,737,505.95
553.92
059.87 ,505.95
-
1. Transfer to surplus 21,083,
reserve 21,083,5
553.92
53.92
2. Transfer to general
risk reserve
- -
3. Distributions to
owners (shareholders) 563,737, 563,737 -563,737,505.95
505.95 ,505.95
4. Others
(IV) Transfers within
owners’ equity
1. Capitalization of
capital reserve
2. Capitalization of
surplus reserve
3. Loss offset by surplus
reserve
4. Retained earnings
carried forward from
changes in defined
benefit plans
5. Retained earnings
carried forward from
other comprehensive
income
6. Others
(V) Special reserve
1. Transfer to special
reserve in the period
97
Mango Excellent Media Co., Ltd. Annual Report 2023
2. Amount utilized in the
period
(VI) Others
9,646,2 19,014, -
IV. Closing balance of 1,870,720, 157,436 126,108 7,371,49
the current period 10,097. 691,412 44,406,275. 18,970,285,136.86
815.00 .90 ,937.21 4,125.42
63 .16 30
8. Statement of changes in owners’ equity of the parent company
Amount in the current period
In RMB
2023
Other equity instruments Other
Less:
Item Capital comprehen Special Surplus Undistributed
Share capital Preferen Perpetua Treasury Others Total owners’ equity
Others reserve sive reserve reserve profits
ce shares l bonds shares
income
I. Closing balance of the 1,870,720,815 10,584,78 126,108,9 246,837,709.4
preceding year 12,828,450,269.23
.00 2,807.56 37.21 6
Add: Changes in
accounting policies
Corrections of prior period
errors
Others
II. Opening balance of the 1,870,720,815 10,584,78 126,108,9 246,837,709.4
current year 12,828,450,269.23
.00 2,807.56 37.21 6
III. Changes for the year -
53,513,07 238,423,996.4
(decrease is indicated by 638,115,91 -346,178,840.51
“-”) 8.05 7
5.03
(I) Total comprehensive 535,130,780.4
income 535,130,780.47
7
(II) Owners’ contributions
and reduction in capital
1． Ordinary shares
contributed by owners
2．Capital contribution
from holders of other
equity instruments
3. Share-based payment
recognized in owners’
equity
4. Others
-
53,513,07
(III) Profit distribution 296,706,784.0 -243,193,705.95
8.05
0
1. Transfer to surplus 53,513,07
reserve -53,513,078.05
8.05
-
2. Distributions to owners
(shareholders) 243,193,705.9 -243,193,705.95
5
3. Others
(IV) Transfers within
owners’ equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4. Retained earnings
carried forward from
changes in defined benefit
plans
5. Retained earnings
carried forward from other
comprehensive income
6. Others
98
Mango Excellent Media Co., Ltd. Annual Report 2023
(V) Special reserve
1. Transfer to special
reserve in the period
2. Amount utilized in the
period
-
(VI) Others 638,115,91 -638,115,915.03
5.03
IV. Closing balance of the 1,870,720,815 9,946,666, 179,622,0 485,261,705.9
current period 12,482,271,428.72
.00 892.53 15.26 3
Amount in the prior period
In RMB
2022
Other equity instruments Other
Item Less: Total
Share Preferen Capital comprehe Special Surplus Undistrib
Perpetua Treasury Others owners’
capital ce Others reserve nsive reserve reserve uted profit
l bonds shares equity
shares income
I. Closing balance 10,584,7
1,870,72 105,025,3 300,279,4 12,860,80
of the preceding 82,807.5
year 0,815.00 83.29 30.14 8,435.99
6
Add: Changes in
accounting policies
Corrections of prior
period errors
Others
10,584,7
II. Opening balance 1,870,72 105,025,3 300,279,4 12,860,80
of the current year 82,807.5
0,815.00 83.29 30.14 8,435.99
6
III. Changes for the - -
21,083,55
year (Decrease is 53,441,72 32,358,16
indicated by “-”) 3.92
0.68 6.76
(I) Total
210,835,5 210,835,5
comprehensive
income 39.19 39.19
(II) Owners’
contributions and
reduction in capital
1. Ordinary shares
contributed by
owners
2. Capital
contribution from
holders of other
equity instruments
3. Share-based
payment recognized
in owners’ equity
4. Others
- -
(III) Profit 21,083,55
distribution 264,277,2 243,193,7
3.92
59.87 05.95
-
1. Transfer to 21,083,55
surplus reserve 21,083,55
3.92
3.92
2. Distributions to - -
owners 243,193,7 243,193,7
(shareholders)
05.95 05.95
3. Others
(IV) Transfers
within owners’
equity
1. Capitalization of
capital reserve
2. Capitalization of
surplus reserve
3. Loss offset by
surplus reserve
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Mango Excellent Media Co., Ltd. Annual Report 2023
4. Retained earnings
carried forward
from changes in
defined benefit
plans
5. Retained earnings
carried forward
from other
comprehensive
income
6. Others
(V) Special reserve
1. Transfer to
special reserve in
the period
2. Amount utilized
in the period
(VI) Others
10,584,7
IV. Closing balance 1,870,72 126,108,9 246,837,7 12,828,45
of the current period 82,807.5
0,815.00 37.21 09.46 0,269.23
6
III. Basic Information of the Company
Mango Excellent Media Co., Ltd. (the “Company”), formerly known as Happigo Inc., was established on the basis of the overall
change of Happigo Co., Ltd. It completed the registration with the Administration for Industry and Commerce of Changsha City, Hunan
Province on December 28, 2005, with the headquarter located in Changsha City, Hunan Province. In July 2018, the Company changed
its name from “Happigo Inc.” to “Mango Excellent Media Co., Ltd”. Currently, the Company holds a business license with unified
social credit code numbered 91430100782875193K, with registered capital amounting to RMB1,870,720,815.00 and a total of
1,870,720,815 shares (with the par value of RMB 1 per share) comprising restricted outstanding A-share of 849,020,900 shares and
unrestricted A-share of 1,021,700,000 shares as of December 31, 2023. The Company’s shares were listed for trading on the Shenzhen
Stock Exchange on January 21, 2015.
The Company is an entity engaged in the Internet new media industry. Its principal operating activities can be divided into three
parts, namely new media platform operation, new media interactive entertainment content production and media retail business.
These financial statements were approved by the 20th meeting of the 4th Board of Directors of the Company on April 18, 2024 for
issuance.
IV. Basis of Preparation of Financial Statements
1. Basis of preparation
The Company’s financial statements are prepared on a going-concern basis.
2. Going-concerning
The Company has detected no events or circumstances that may cast significant doubt upon its ability to continue as a going
concern within 12 months from the Reporting Period.
V. Significant Accounting Policies and Accounting Estimates
Reminders on specific accounting policies and accounting estimates:
Notice: The Company has formulated the specific accounting policies and made the specific accounting estimates with respect to
the impairment of financial instruments, depreciation of fixed assets, depreciation of right-of-use assets, amortization of intangible
assets, recognition of revenues and other transactions and events according to the actual production and operation characteristics of the
Company.
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1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company conform to the requirements of the Accounting Standards for Business
Enterprises and truly and completely reflect the Company’s financial position, operating results, cash flows and other related
information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company has a relatively short operating cycle, and determines the liquidity of assets and liabilities on the basis of 12 months.
4. Functional currency
The Company and its domestic subsidiaries adopt RMB as its functional currency, while Mgtv.com (Hong Kong) Media Company
Limited engages in overseas operations and accordingly selects the US dollar, the currency used in the main economic environment in
which it operates, as its functional currency.
5. Determination and basis for selection of materiality criteria
Applicable □N/A
Item Materiality criteria
Material accounts receivable assessed Individual accounts receivable in excess of RMB10 million are recognized as material
for impairment loss individually accounts receivable.
Material prepayments aged more than Individual prepayments in excess of RMB30 million and aged more than one year are
one year recognized as material prepayments.
Material accounts payable aged more Individual accounts payable in excess of RMB30 million and aged more than one year
than one year are recognized as material accounts payable.
Material other payables aged more than Individual other payables in excess of RMB3 million and aged more than one year are
one year recognized as material other payables.
Material capitalised research and Any capitalised research and development project in excess of RMB30 million is
development projects recognized as a material capitalised research and development project
Material subsidiaries and non-wholly- Any subsidiary whose total assets/operating revenue accounts for more than 15% of the
owned subsidiaries Group’s total assets/operating revenue, or whose total profit/net profit accounts for more
than 10% of the Group’s total profit/net profit is recognized as a material subsidiary or
non-wholly-owned subsidiary (as the case may be).
Material commitments Individual commitments in excess of RMB100 million are recognized as material
commitments.
Material contingencies Individual contingencies in excess of RMB10 million or of a special nature are recognized
as material contingencies.
Material subsequent events Individual subsequent events in excess of RMB100 million are recognized as material
subsequent events.
Any debt restructuring in excess of RMB10 million is recognized as a material debt
Material debt restructuring
restructuring
6. Accounting treatment of business mergers involving entities under common control and business mergers
not involving entities under common control
1. Accounting treatment of business merger involving entities under common control
Assets and liabilities that are obtained by the Company in a business merger shall be measured at their carrying values in the
consolidated financial statements of the ultimate controller at the merger date as recorded by the acquiree. The difference between the
carrying value of the owners’ equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and the
carrying value of the total consideration paid or total par value of the shares issued in connection with the merger is treated as an
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Mango Excellent Media Co., Ltd. Annual Report 2023
adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference, the remaining balance is adjusted
against the retained earnings.
2. Accounting treatment of business mergers not involving entities under common control
Where the cost of the merger exceeds the Company’s share of the fair value of the acquiree’s identifiable net assets, the difference
is recognized as goodwill at the date of acquisition. Where the cost of merger is lower than the Company’s share of the fair value of
the acquiree’s identifiable net assets, the Company reviews the measurement of the fair value of each of the identifiable assets, liabilities
and provisions acquired from the acquiree and the cost of merger, and if the cost of merger as reviewed is still lower than the Company’s
share of the fair value of the acquiree’s identifiable net assets, the difference is recognized in profit or loss for the current period.
7. Determination of control and method of preparation of consolidated financial statements
1. Determination of control
Control refers to the investor has the power over the investee, enjoys variable returns by participating in the relevant activities of
the investee, and has the ability to use the power of the investee to influence the amount of returns.
2. Method of preparation of consolidated financial statements
The Company includes all of its controlled subsidiaries in its consolidated financial statements. The consolidated financial
statements are prepared by the parent company in accordance with the Accounting Standards for Business Enterprises No. 33 -
Consolidated Financial Statements, on the basis of the respective financial statements of the parent company and its subsidiaries, by
reference to other relevant data.
8. Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements are classified into joint operations and joint ventures.
2. When the Company is a party to a joint operation, the Company recognizes the following items relating to its interest in the
joint operation:
(1) the assets individually held by the Company, and the Company’s share of the assets held jointly;
(2) the liabilities incurred individually by the Company, and the Company’s share of the liabilities incurred jointly;
(3) the Company’s revenue from the sale of its share of output of the joint operation;
(4) the Company’s share of revenue from the sale of assets by the joint operation; and
(5) the expenses incurred individually by the Company, and the Company’s share of the expenses incurred jointly.
9. Recognition of cash and cash equivalents
For the purpose of the statement of cash flows, cash comprises cash on hand and demand deposits, and cash equivalents comprise
short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant
risk of changes in value.
10. Foreign currency transactions and translation of foreign currency financial statements
1. Translation of foreign currency transactions
Upon initial recognition, foreign currency transactions are translated into RMB using the exchange rates prevailing at the
transaction dates. At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot
exchange rates at the balance sheet date. Exchange differences arising from such translations are recognized in profit or loss for the
current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or
construction of qualifying assets and accrued interest. Non-monetary items denominated in foreign currencies that are measured at
historical cost are translated using the foreign exchange rates ruling at the transaction dates, without adjusting the amounts in RMB.
Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange rates
prevailing at the dates the fair value was determined, and exchange differences arising from such translations are recognized in profit
or loss for the current period or other comprehensive income.
2. Translation of foreign currency financial statements
The asset and liability items in the balance sheet are translated at the spot exchange rates at the balance sheet date. The owners’
equity items other than “Undistributed profits” are translated at the spot exchange rates at the transaction dates. The income and expense
items in the income statements are translated at the spot exchange rates at the transaction dates. Exchange differences arising from such
translations are recognized in other comprehensive income.
11. Financial instruments
1. Classification of financial assets and financial liabilities
Upon initial recognition, financial assets are classified into: (1) financial assets at amortized cost; (2) financial assets at fair value
through other comprehensive income; and (3) financial assets at fair value through profit or loss.
Upon initial recognition, financial liabilities are classified into: (1) financial liabilities at fair value through profit or loss; (2)
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Mango Excellent Media Co., Ltd. Annual Report 2023
financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or continuing
involvement in the financial assets transferred; (3) financial guarantee contracts not falling under items (1) and (2), and loan
commitments not falling under item (1) and below market interest rate; and (4) financial liabilities at amortized cost.
2. Recognition, measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liability is recognized. Financial assets
and liabilities are initially measured at fair value. Transaction costs relating to financial assets or liabilities at fair value through profit
or loss are directly recognized in profit or loss for the current period. Transaction costs relating to other kinds of financial assets or
liabilities are included in their initially recognized amount. However, where the accounts that do not contain any significant financing
component or are recognized by the Company without taking into consideration the significant financing components under the
contracts with a term of less than one year upon initial recognition are initially measured at transaction price defined in the Accounting
Standards for Business Enterprises No. 14 - Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains or losses
on financial assets at amortized cost that do not belong to any hedging relationship are recognized in profit or loss for the current period
upon derecognition, reclassification, amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.
Interest, impairment losses or gains and exchange gains or losses calculated using the effective interest method are recognized in profit
or loss for the current period, and other gains or losses are recognized in other comprehensive income. On derecognition, the cumulative
gain or loss previously included in other comprehensive income is removed out from other comprehensive income and included in
profit or loss for the current period.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.
Dividends received (other than those received as recovery of investment cost) are recognized in profit or loss for the current period,
and other gains or losses are recognized in other comprehensive income. On derecognition, the cumulative gain or loss previously
included in other comprehensive income is removed out from other comprehensive income and included in retained earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon, including
interest and dividend income, are recognized in profit or loss for the current period, except the financial assets belonging to any hedging
relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including derivatives classified
as financial liabilities), and financial liabilities directly designated as at fair value through profit or loss. Such financial liabilities are
subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at fair value through profit or loss
arising out of changes in the Company’s credit risk are recognized in other comprehensive income, unless such treatment will result in
or increase any accounting mismatch in profit or loss. Other gains or losses on such financial liabilities, including interest expenses
and changes in fair value not arising out of changes in the Company’s credit risk, are recognized in profit or loss for the current period,
except the financial liabilities belonging to any hedging relationship. On derecognition, the cumulative gain or loss previously included
in other comprehensive income is removed out from other comprehensive income and included in retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or continuing
involvement in the financial assets transferred
Such financial liabilities are measured in accordance with the Accounting Standards for Business Enterprises No. 23 - Transfer of
Financial Assets.
3) Financial guarantee contracts not falling under items 1) and 2) above, and loan commitments not falling under item 1) above
and below market interest rate
Such financial liabilities are subsequently measured at the higher of ① provision for impairment losses determined according to
the policy for impairment of financial instruments; and ② balance of the initially recognized amount after deduction of the accumulated
amortization determined in accordance with Accounting Standards for Business Enterprises No. 14 - Revenue.
4) Financial liabilities at amortized cost
Such financial liabilities are measured at amortized cost using the effective interest method. Gains or losses on financial liabilities
at amortized cost that do not belong to any hedging relationship are recognized in profit or loss for the current period upon derecognition
or amortization using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognition of financial assets as set forth
in the Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligations thereon have been discharged.
3. Determination and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewards incidental to the ownership of the
financial asset have been transferred, the financial asset is derecognized, and the rights and obligations incurred or retained in such
transfer are separately recognized as assets or liabilities (as the case may be). If the Company retains substantially all the risks and
rewards of ownership of a financial asset, the Company shall not derecognize the financial asset. If the Company retains substantially
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Mango Excellent Media Co., Ltd. Annual Report 2023
all the risks and rewards of ownership of a financial asset, the Company shall not derecognize the financial asset. If the Company
neither transferred nor retained a substantial portion of all risks and rewards incidental to the ownership of the financial asset, then: (1)
if the Company does not retain control over the financial asset, the financial asset is derecognized, and the rights and obligations
incurred or retained in such transfer are separately recognized as assets or liabilities (as the case may be); and (2) if the Company
retains control over the financial asset, the financial asset continues to be recognized to the extent of the Company’s continuing
involvement in the financial asset transferred, and a corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between (1) the carrying value of the
financial asset transferred at the date of derecognition; and (2) the sum of the consideration received from the transfer and the portion
of the cumulative amount of changes in fair value directly recorded as other comprehensive income originally that corresponds to the
part derecognized (where the financial asset transferred is an investment in debt instruments at fair value through other comprehensive
income) is recognized in profit or loss for the current period. If part of a financial asset is transferred and the part transferred entirely
meets the criteria for derecognition, the total carrying value of the financial asset immediately prior to the transfer is allocated between
the part derecognized and the part not derecognized in proportion to their relative fair value at the date of transfer, and the difference
between (1) the carrying value of the part derecognized and (2) the sum of the consideration received from the transfer of the part
derecognized and the portion of the cumulative amount of changes in fair value directly recorded as other comprehensive income
originally that corresponds to the part derecognized (where the financial asset transferred is an investment in debt instruments at fair
value through other comprehensive income) is recognized in profit or loss for the current period.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with sufficient data available and support
of other information to determine the fair value of financial assets and financial liabilities. The Company classifies the inputs used by
the valuation techniques in the following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or liability available at the date of
measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or indirectly. This category includes
quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive
markets, observable inputs other than quoted prices (such as interest rate and yield curves observable during regular intervals of
quotation), and inputs validated by the market;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility that cannot be directly
observed or validated by observable market data, future cash flows from retirement obligation incurred in business mergers, and
financial forecasts made using own data.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
The Company carries out impairment treatment and determines impairment losses of financial assets at amortized cost,
investments in debt instruments at fair value with changes accrued to other comprehensive income, contract assets, lease receivables,
loan commitments other than financial liabilities at fair value with changes accrued to current profit or loss, and financial guarantee
contracts other than financial liabilities at fair value with changes accrued to current profit or loss and other than financial liabilities
arising as a result of the transfer of financial assets that does not meet the criteria for derecognition or that continues being involved in
the financial assets transferred, on the basis of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking into account the possibility of default.
Credit loss is the present value of the difference between all contractual cash flows receivable under the contract and estimated future
cash flows discounted at the original effective interest rate, i.e., the present value of all cash shortage, wherein the Company’s purchased
or originated financial assets that have become credit impaired are discounted at their credit-adjusted effective interest rate.
With respect to purchased or originated financial assets that have become credit impaired, at the balance sheet date, the Company
recognizes a loss allowance equal to the cumulative amount of changes in lifetime expected credit losses since initial recognition.
With respect to accounts receivable and contract assets that arise from the transactions regulated under the Accounting Standard
for Business Enterprises No. 14 - Revenue and do not contain any significant financing component or are recognized by the Company
without taking into consideration the significant financing components under the contracts with a term of less than one year, the
Company uses the simple measurement method and recognizes a loss allowance equal to the lifetime expected credit losses.
With respect to financial assets not using the measurement methods stated above, at each balance sheet date, the Company assesses
whether the credit risk has increased significantly since initial recognition, and recognizes a loss allowance equal to the lifetime
expected credit losses if the credit risk has increased significantly since initial recognition, or to the expected credit losses within the
next 12 months if the credit risk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information, and compares the possibility
of default at the balance sheet date with the possibility of default upon initial recognition, to determine whether the credit risk of the
financial instruments has increased significantly since initial recognition.
At the balance sheet date, if the Company determines that a financial instrument has low credit risk, the Company assumes that
its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financial instruments individually or
collectively. When assessing the financial instruments collectively, the Company includes the financial instruments in different groups
according to their common risk characteristics.
At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of increase in or reversal of loss
allowance recognized in profit or loss for the current period as impairment losses or gains. With respect to a financial asset at amortized
cost, its carrying value recorded in the balance sheet is written off against the loss allowance. With respect to an investment in debt
instruments at fair value through other comprehensive income, the Company recognizes the loss allowance in other comprehensive
income, without reducing its carrying value.
(2) Financial instruments with expected credit risk assessed on a group basis and expected credit loss measured under three-stage
model
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Mango Excellent Media Co., Ltd. Annual Report 2023
Item Basis for grouping Method for measuring expected credit losses
Other receivables - group of receivables from Calculate the expected credit losses according to
related parties controlled by the same actual the default risk exposure and rate of expected
controller Nature of receivables credit loss within the next 12 months or lifetime
Other receivables - group of deposit and security expected credit losses by reference to historic
receivable credit loss experience, and taking into account
Other receivables - grouping by age the current situations and prediction of future
Aging economic conditions.
(3) Accounts receivable and contract assets for which expected credit losses are measured collectively
1) Specific grouping and method for measuring expected credit losses
Item Basis for grouping Method for measuring expected credit losses
Notes receivable - banker’s acceptance
bills Calculate the expected credit losses according to the
Type of notes
Notes receivable - commercial default risk exposure and lifetime expected credit losses
acceptance bills receivable by reference to historic credit loss experience, and taking
Accounts receivables - group of Group of receivables from into account the current situations and prediction of
receivables from related parties related parties controlled by the future economic conditions.
controlled by the same actual controller same actual controller
Prepare a comparison table of the age of accounts
receivable and rate of lifetime expected credit loss, and
calculate the expected credit losses by reference to
Accounts receivable - grouping by age Aging
historic credit loss experience, and taking into account
the current situations and prediction of future economic
conditions.
Calculate the expected losses according to the default risk
exposure and rate of lifetime expected loss by reference
Contract assets - group of operator
Operator business to historic loss experience, and taking into account the
business
current situations and prediction of future economic
conditions.
2) Accounts receivable - comparison table of the age of accounts receivable and rate of lifetime expected credit loss
Aging Accounts receivable
Rate of expected credit loss (%)
Group I: Mango TV Internet Video Business (Happy Sunshine)
Within 1 year (inclusive, same below) 5.00
1-2 years 10.00
2-3 years 30.00
3-4 years 50.00
4-5 years 100.00
Over 5 years 100.00
Group II: New media interactive entertainment production and operation, content
e-commerce and others (companies other than Happy Sunshine)
Within 1 year (inclusive, same below) 1.00
1-2 years 5.00
2-3 years 10.00
3-4 years 30.00
4-5 years 50.00
Over 5 years 100.00
Accounts receivable shall be aged from the month in which they are actually incurred.
(4) The criteria for the identification of receivables and contract assets for the accrual of expected credit losses on an individual
basis
For receivables and contract assets whose credit risk is significantly different from its portfolio credit risk, the expected credit
losses shall be accrued on an individual basis.
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However, a financial asset
and a financial liability shall be offset, and the net amount presented in the balance sheet when both of the following conditions are
satisfied: (1) the Company has a legal right to set off the recognized amounts and the legal right is currently enforceable; and (2) the
Company intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously.
In accounting for a transfer of a financial asset that does not qualify for derecognition, the Company does not offset the transferred
financial asset and the associated liability.
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Mango Excellent Media Co., Ltd. Annual Report 2023
12. Contract assets
Contract assets or contract liabilities are presented in the balance sheet according to the relationship between the relevant
performance obligations and payment by the customer. Contract assets and contract liabilities under the same contract are presented on
a net basis.
The right of the Company to payment that is unconditional, except for the passage of time, is presented as an account receivable.
The right of the Company to payment for goods already transferred to a customer is presented as a contract asset if that right to payment
is conditional on something other than the passage of time.
13. Inventories
The Company shall comply with the disclosure requirements for “Internet Video Business” set forth in the Guide on Self-
regulatory Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 – Disclosure of Industry Information by the
Companies Listed on the ChiNext Board.
1. Classification of inventories
Inventories include finished goods or merchandise held by the Company for sale in the ordinary course of business, or work in
progress in the process of production for such sale, or materials or supplies to be consumed in the production process or in the rendering
of services.
2. Pricing methods of inventories transferred out
When transferring out inventories, the Company determines the actual cost of automobile, film and TV drama and consignment
goods using the specific-identification method and of the remaining goods using the weighted moving average method.
3. Inventory systems for inventories
A perpetual inventory system is adopted, among which the Company uses verification of copyright and other right documents as
the inventory system for films and TV dramas.
4. Amortization of low-value consumables and packing materials
(1) Low-value consumables
The packing materials are amortized using immediate write-off method.
(2) Packing materials
The packing materials are amortized using immediate write-off method.
5. Determination criteria and accrual method of inventory depreciation reserve
On the balance sheet date, inventory is measured at the lower of the cost or the net realizable value, and the inventory depreciation
reserve is accrued for the difference between the cost and the net realizable value. In the normal production and operation process, the
net realizable value of inventory directly used for sale is determined by the estimated selling prices of inventory less the estimated
selling expenses and related taxes; in the normal production and operation process, the net realizable value of inventory to be processed
is determined by the estimated selling prices of finished products less the estimated costs to be incurred upon completion, the estimated
selling expenses, and related taxes; on the balance sheet date, if part of the same inventory has contract price agreements, while the
other part does not have any, their net realizable values shall be determined respectively, which shall be compared with the
corresponding costs, to determine the amount of the inventory depreciation reserve to be accrued or reserved respectively.
14. Long-term equity investments
1. Judgment criteria of joint control and significant influence
Joint control is the agreed sharing of control over an arrangement, and the decision in relation to the relevant activities of such
arrangement may only be made upon the unanimous consent of the parties sharing control. Significant influence is the power of the
investing enterprise to participate in the financial and operating policy decisions of an investee, but is not control or joint control with
other parties over the establishment of those policies.
2. Determination of investment cost
(1) In case of an equity investment acquired through a business merger involving entities under common control, if the acquirer
pays consideration for the business merger by cash, transfer of non-cash assets, assumption of liabilities or issuance of equity securities,
the initial investment cost of the long-term equity investment is the Company’s share of the carrying value of the owners’ equity of the
acquiree in the consolidated financial statements of the ultimate controller at the date of merger. The difference between the initial
investment cost of the long-term equity investment and the carrying value of the consideration paid for the merger or the total par value
of the shares issued (as applicable) is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb
the difference, the remaining balance is adjusted against the retained earnings.
In case of a long-term equity investment acquired through a business merger involving entities under common control and through
multiple transactions by steps, the Company judges whether they constitute a “package deal” or not. If they belong to a “package deal”,
the Company accounts for all transactions as one transaction to acquire control. If such transactions do not constitute a “package deal”,
the initial investment cost is the Company’s post-merger share of the carrying value of the net assets of the acquiree in the consolidated
financial statements of the ultimate controller at the date of merger. The difference between the initial investment cost of the long-term
equity investment at the date of merger and the sum of the carrying value of long-term equity investment before the merger and the
carrying value of the consideration paid for acquisition of the additional shares at the date of merger is adjusted against the capital
reserve. In case the capital reserve is not sufficient to absorb the difference, the remaining balance is adjusted against the retained
earnings.
(2) In case of an equity investment acquired through a business merger not involving entities under common control, the initial
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Mango Excellent Media Co., Ltd. Annual Report 2023
investment cost is the fair value of the consideration paid for the merger at the date of acquisition.
With respect to a long-term equity investment acquired through a business merger not involving entities under common control
that is achieved through multiple transactions by steps, the accounting treatment thereof in the separate financial statements is different
from that in the consolidated financial statements as stated below:
1) In the separate financial statements, the initial investment cost for which the Company changes to the cost method is the sum
of the carrying value of the long-term equity investment originally held and the new investment cost.
2) In the consolidated financial statements, the Company judges whether the transactions constitute a “package deal” or not. If
they belong to a “package deal”, the Company accounts for all transactions as one transaction to acquire control. If such transactions
do not constitute a “package deal”, the Company re-measures the fair value of the equity held in the acquiree prior to the date of
acquisition, and records the difference between the fair value and the carrying value as investment income for the current period; if the
equity held in the acquiree prior to the date of acquisition involves other comprehensive income under equity method, such other
comprehensive income is transferred to the income of the period in which the date of acquisition falls, except for other comprehensive
income arising from re-measurement by the investee of changes in net liabilities or net assets of defined benefit plans.
(3) In case of an equity investment not acquired through business merger, the initial investment cost is the purchase price actually
paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired through issuance of equity securities, or is
determined in accordance with the Accounting Standards for Business Enterprises No. 12 - Debt Restructuring if it is acquired through
debt restructuring, or in accordance with the Accounting Standards for Business Enterprises No. 7 - Exchange of Non-monetary Assets
if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees are measured using the cost method. Long-term equity investments in associates and
joint ventures are measured using the equity method.
4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of control over the subsidiary
(1) Determination of whether a transaction is a “package deal”
Where equity investment is made in the subsidiary step by step through multiple transactions until the control is lost, the Company
determines whether the step-by-step transaction is a “package deal” by considering the transaction agreement terms, the respective
disposal consideration acquired, the object of the equity sale, the disposal means, the disposal time and other information of each step
of the step-by-step transaction. If the terms, conditions and economic impact of each transaction meet one or more than one of the
following conditions, it generally indicates that the multiple transactions are the “package deal”:
1) The transactions are concluded at the same time or with regard to their mutual effects;
2) These transactions can achieve a complete business outcome only when being considered as a whole;
3) The occurrence of one transaction depends on the occurrence of at least one other transaction;
4) A transaction is uneconomic in isolation, but economic when considered together with other transactions.
(2) Accounting treatment that is not a “package deal”
1) Separate financial statements
The difference between the carrying value of the equity disposed of and the proceeds of disposal actually received is recognized
in profit or loss for the current period. If the remaining equity empowers the Company to exercise significant influence or joint control
over the investees, the remaining equity is accounted for using the equity method; if the remaining equity does not empower the
Company to exercise control, joint control or significant influence over the investees, the remaining equity is accounted for in
accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
2) Consolidated financial statements
Prior to the loss of control, the difference between the proceeds from disposal and the share owned by the Company in the net
assets of the subsidiary in relation to the long-term equity investment disposed of that is calculated continuously from the date of
acquisition or merger is adjusted against the capital reserve (capital premium). In case the capital premium is not sufficient to absorb
the difference, the remaining balance is adjusted against the retained earnings.
When losing control over an original subsidiary, the remaining equity is re-measured at its fair value at the date of loss of control.
The sum of the consideration received from the disposal of the equity and the fair value of the remaining equity, net of the share owned
by the Company in the net assets of the subsidiary as calculated continuously from the date of acquisition or merger according to the
previous shareholding ratio, is recognized in the investment income for the period in which the control is lost, and the goodwill is
reduced accordingly. Other comprehensive income relating to the equity investment in the original subsidiary should be transferred to
the investment income for the period in which the control is lost.
(3) Accounting treatment for “package deals”
1) Separate financial statements
The Company accounts for such transactions as one transaction to dispose of and lose its control over the subsidiary, however,
the difference between the proceeds from each disposal before loss of control and the carrying value of long-term equity investments
in relation to the investment disposed of is recognized in other comprehensive income in individual financial statements, which is
wholly transferred to the profit or loss in the period in which the control is lost.
2) Consolidated financial statements
The Company accounts for such transactions as one transaction to dispose of and lose its control over the subsidiary, however,
the difference between the proceeds from each disposal before loss of control and the share owned by the Company in the net assets of
the subsidiary in relation to the investment disposed of is recognized in other comprehensive income in the consolidated financial
statements, which is wholly transferred to the profit or loss in the period in which the control is lost.
15. Investment properties
Measurement model of investment properties
Cost method measurement
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Depreciation or amortization method
1. Investment properties include land use rights already leased, land use rights held and ready to be transferred upon appreciation
and leased buildings.
2. An investment property is measured initially at cost, and subsequently using the cost model. The cost of the investment property,
net of estimated net residual value and cumulative provision for impairment loss, is depreciated or amortized using the straight-line
method over its remaining useful life.
16. Fixed assets
(1) Criteria for recognition
Fixed assets are tangible assets held for production of goods, rendering of services, lease or operation and management with a
useful life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very likely to flow
to the Company and its cost can be reliably measured.
(2) Depreciation
Estimated useful life
Category Method of depreciation Residual value rate Annual depreciation rate
(years)
Buildings Straight line method 30 4 3.2
Machines and equipment Straight line method 3-8 0-5 11.88-33.33
Transportation
Straight line method 5-8 0-5 11.88-20
equipment
Electronic equipment,
Straight line method 3-10 0-5 9.50-33.33
devices and furniture
With respect to artworks whose estimated useful life is uncertain, the Company does not assess their depreciation but performs an
impairment test on them every year.
17. Borrowing costs
1. Recognition of capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalized as part of the cost of the relevant asset. The amounts of other borrowing costs incurred are expensed
when incurred and included in profit or loss for the current period.
2. Period of capitalization of borrowing costs
(1) A borrowing cost is capitalized when all of the following conditions are satisfied: 1) the expenditures on the asset have already
been incurred; 2) the borrowing cost has already been incurred; and 3) the acquisition, construction or production activities necessary
to prepare the asset for its intended use or sale have already commenced.
(2) Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a
qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than 3 months. The borrowing costs
incurred during these periods are recognized as an expense for the current period until the acquisition, construction or production
activity is resumed.
(3) When the qualifying asset being acquired, constructed or produced has become ready for its intended use or sale, the
capitalization ceases.
3. Rate and amount of capitalization of borrowing costs
If funds are borrowed under a specific-purpose borrowing for the acquisition, construction or production of a qualifying asset, the
amount of interest to be capitalized shall be the actual interest expense incurred on that borrowing for the period (including amortized
discount or premium determined using the effective interest method) less any bank interest earned from depositing the borrowed funds
before being used on the asset or any investment income on the temporary investment of those funds. If funds are borrowed under
general-purpose borrowings and are utilized for the acquisition, construction or production of a qualifying asset, the Company shall
determine the amount of interest to be capitalized on such borrowings by multiplying a capitalization rate of the utilized general-
purpose borrowings by the weighted average of the excess amounts of cumulative expenditures on the asset over and above the amounts
of specific-purpose borrowings.
18. Intangible assets
(1) Useful life, basis for determination of useful life, estimates, amortization or review process
The Company shall comply with the disclosure requirements for “Internet Video Business” set forth in the Guide on Self-regulatory
Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 - Disclosure of Industry Information by the Companies
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Listed on the ChiNext Board.
1. Intangible assets include film and TV copyrights, land use rights, software, trademarks and domains, game copyrights, etc.,
which are initially measured at cost.
2. Service life and amortization method
(1) Amortization and carryforward of film and TV copyrights
When a film and TV copyright is recognized as an intangible asset, that copyright is amortized in the light of the following
principles during the copyright benefit period: in case of the permanent copyright with the benefit period being determined to be 5
years and the films and TV dramas copyright with the benefit period being determined to be not less than 3 years (inclusive), they are
amortized on a 5:3:2 basis (that is, 50% of the intangible asset value is amortized evenly in the first 12 months, 30% in the second 12
months and the remaining 20% is amortized on a straight-line basis during the remaining benefit period); in case of the copyrights with
the benefit period of more than 2 years (inclusive) but less than 3 years, they are amortized on a 5:5 basis (that is, 50% is amortized in
the first 12 months and the remaining 50% is amortized in a straight line during the remaining benefit period); and in case of the
copyrights with the benefit period of less than 2 years, they are amortized on a monthly straight-line basis during the benefit period.
When the film and TV copyright is used for distribution, the right to use and income right, etc. shared jointly or enjoyed
respectively by the Company and its counterparty after distribution should be transferred as the book cost of the intangible assets at the
lower of the income amount and the amortized carrying value of intangible assets from the date on which they satisfy the recognition
criteria of revenue. If the amortized value after transfer is still greater than zero, they continue to be amortized using the original
amortization method during the remaining amortization period.
(2) Amortization of other intangible assets other than film and TV copyright.
The depreciable amount of an intangible asset with a finite useful life is allocated on a systematic and rational basis over its useful
life in the pattern in which the asset’s economic benefits are expected to be realized. If that pattern cannot be determined reliably, the
straight line method shall be used. The specific life is shown as follows:
Basis for determination of
Item Useful life (years) Method of amortization
useful life
Land use rights Term of the relevant land use
Title certificate Straight line method
right certificate
Software 3-10 Expected benefit period Straight line method
Trademarks and domain
Term of license Term of license Straight line method
names
Patent license fee 10 Expected benefit period Straight line method
Program adaptation right 3 Expected benefit period Straight line method
Game copyright Agreed term of license Agreed term of license Straight line method
(2) Scope and accounting treatment of research and development expenditures
(1) Labor costs
Labor costs include wages and salaries for the Company’s R&D personnel, basic pension insurance, basic medical insurance,
unemployment insurance, work-related injury insurance, maternity insurance, housing provident funds, employee benefits, etc.
If R&D personnel serve multiple R&D projects concurrently, their costs are allocated proportionally based on their recorded work
hours across different projects.
(2) Direct investment costs
Direct investment costs mean actual expenditures incurred by the Company for implementing R&D activities, such as technical
service fees for the operation, maintenance, inspection, testing, and repair of equipment used in R&D activities.
(3) Depreciation expenses and long-term deferred expenses
Depreciation expense mean costs for the depreciation of equipment and buildings in R&D activities.
For equipment and buildings used both for R&D and non-R&D activities, necessary records shall be made on the use of such
equipment and buildings, and the actually incurred depreciation costs shall be allocated between R&D expenses and production and
operating expenses in a reasonable manner according to the actual working hours, use area, etc.
Long-term deferred expenses include costs incurred during the alteration, modification, renovation and repair of R&D facilities.
When the facilities are used for non-R&D activities at the same time, the expenses shall be allocated between R&D expenses and
production and operating expenses in a reasonable manner according to the actual working hours and usage area.
(4) Amortization expenses for intangible assets
Amortization expenses for intangible assets mean the amortization expenses for software and intellectual properties used in R&D
activities.
(5) Commissioned external R&D expenses
The commissioned external R&D expenses mean expenses incurred by the Company in delegating other organizations or
individuals, both at home and abroad, to conduct R&D activities (the results of the R&D activities are owned by the Company and are
closely related to the Company’s main business).
(6) Other expenses
Other expenses mean expenses directly related to R&D activities other than the above expenses, including document translation
fees, expert consulting fees, fees for the retrieval, demonstration, review, appraisal, examination and acceptance of R&D results,
intellectual property application fees, registration fees, conference expenses, travel expenses, communication fees, etc.
The Company engages in the research and development of system software. Expenditures on research and development projects
are classified into expenditures at research phase and expenditures at development phase according to the nature of expenditures and
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depending on whether it is significantly uncertain that the research and development activities will result in intangible assets.
Expenditures at research phase are expenditures at the phase of planned investigation, evaluation and selection for purpose of software
research, which are recognized in profit or loss for the period in which they are incurred. Expenditures at the phase of design and testing
for purpose of final application of the software are recorded as expenditures at development phase, which are capitalized prior to the
final application of the software when all of the following conditions are satisfied: (1) the development of the software has been
sufficiently validated by the technical team; (2) the management has approved the budget for the development of the software; (3) the
system functions and performance of the software to be developed can satisfy the requirements of economic activities; (4) the technical
and financial resources available are sufficient to meet the requirements of the development activities and subsequent use of the
software; and (5) the expenditures attributable to the development of the software can be reliably measured.
19. Impairment of long-term assets
With respect to long-term equity investments, fixed assets, construction in progress, intangible assets with a finite useful life,
right-of-use assets and other long-term assets, if there’s an indication of impairment at the balance sheet date, the Company assesses
their recoverable amount. Goodwill arising from a business merger and an intangible asset with an indefinite useful life are tested for
impairment annually, irrespective of whether there is any indication that the asset may be impaired. For the purpose of impairment
testing, goodwill is considered together with the related asset groups or sets of asset groups.
If the recoverable amount of the long-term asset above is lower than its carrying value, the difference is measured as impairment
loss of the asset and recognized in profit or loss for the current period.
20. Long-term prepaid expenses
Long-term prepaid expenses are expenses that have already been incurred but should be amortized over a period of more than one
year (exclusive). Long-term prepaid expenses are stated as incurred and are amortized evenly by stages within the benefit period or
specified period. If an item of long-term prepaid expenses will not benefit the subsequent periods, the amortized value of the item that
has not yet been amortized is wholly transferred to profit or loss for the current period.
21. Contract liabilities
The Company presents the contract assets or liabilities in the balance sheet based on the relationship between performance
obligations and customer payments. The Company lists the net contract assets and liabilities under the same contract after offset.
The Company presents its obligation to transfer goods to customers for the consideration received or receivable from customers
as the contract liabilities.
22. Employee benefits
(1) Accounting treatment of short-term employee benefits
The Company recognizes the short-term benefits actually incurred during the accounting period when the employees provide
services for the Company as liabilities, and include the same in profit or loss for the current period or as part of the cost of related
assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) The Company recognizes the contributions payable as calculated based on the defined contribution plan during the accounting
period when the employees provide services for the Company as liabilities, and include the same in profit or loss for the current period
or as part of the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method, use the unbiased and consistent actuarial assumptions to estimate demographic
variables and financial variables, measure the obligation arising from the defined benefit plan and determine the period to which the
relevant obligation belongs. Meanwhile, discount the obligation arising from the defined benefit plan, in order to determine the present
value of the benefit plan obligation and the current service cost;
2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the present value of the defined benefit plan
obligation by the fair value of the assets is recognized as a net liability or asset of the defined benefit plan. If the defined benefit plan
has a surplus, the net assets of the defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset ceiling;
3) At the end of the Reporting Period, the cost of employee benefits arising from the defined benefit plan is recorded as service
cost, net interest on the net liabilities or net assets of the defined benefit plan, and changes arising from re-measurement of the net
liabilities or net assets of the defined benefit plan, wherein the service cost and the net interest on the net liabilities or net assets of the
defined benefit plan are included in profit or loss for the current period or the cost of related assets, and the changes arising from re-
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measurement of the net liabilities or net assets of the defined benefit plan are included in other comprehensive income, which will not
be converted back to profit or loss in subsequent periods, but those recognized as other comprehensive income may be transferred
within the scope of equity.
(3) Accounting treatment of termination benefits
The Company recognizes the employment compensation liabilities generated by termination benefits and records them into the
profit or loss for the current period at the earlier of the following dates: (1) when the Company cannot unilaterally withdraw the
termination benefits provided as a result of the labor relationship termination plan or layoff proposal; or (2) when the Company
recognizes the costs or expenses related to the restructuring of the termination benefits payment.
(4) Accounting treatment of other long-term employee benefits
Other long-term employee benefits are accounted for in accordance with the provisions applicable to defined contribution plans
if they are qualified as defined contribution plans, otherwise, are accounted for in accordance with the provisions applicable to defined
benefit plans. In order to simplify the accounting treatment, the total net amount of the cost of employee benefits arising from the
defined benefit plans that is recorded as service cost, net interest on the net liabilities or net assets of the defined benefit plan, changes
arising from re-measurement of the net liabilities or net assets of the defined benefit plan and other components is included in profit or
loss for the current period or the cost of related assets.
23. Provisions
1. An obligation arising from any external guarantee, litigation, product quality warranty, onerous contract or other contingencies
is recognized as a provision if it is a present obligation assumed by the Company, and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably measured.
2. Provisions are initially measured according to the best estimates of the expenditures required to settle the related present
obligations. The carrying value of provisions is reviewed at the balance sheet date.
24. Revenue
Accounting policies adopted for the recognition and measurement of revenues disclosed by type of business
Accounting policies adopted for the recognition and measurement of revenues
1. Revenue recognition
At the inception of the contract, the Company evaluates the contract, identifies each single performance obligation contained
therein and determine whether each single performance obligation is performed over time or at a point in time.
When meeting one of the following criteria, it belongs to the obligation performed over time, otherwise it constitutes the obligation
performed at a point in time: (1) the customer obtains and consumes the economic benefits generated by the Company’s performance
when the Company performs the contract; (2) the customer can control the products under construction in the process of the Company’s
performance; (3) the products produced in the process of the Company’s performance have irreplaceable uses, and the Company has
the right to collect payment for the cumulative performance that has been completed up to date throughout the term of the contract.
For the obligation performed over time, the Company recognizes the revenue based on the performance progress over time. When
the performance progress cannot be reasonably determined, and the costs incurred are expected to be recoverable, revenue is recognized
to the extent of costs incurred until the performance progress can be reasonably determined. For the obligation performed at a point in
time, the revenue is recognized at the time point when the customer obtains the control of the related goods or services. When judging
whether the customer has obtained the control of goods, the Company considers the followings signs: (1) the Company has the current
right to receive payment for such goods, that is, the customer has the current obligation to make payment for such goods; (2) the
Company has transferred the legal ownership of such goods to the customer, that is, the customer has the legal ownership of such goods;
(3) the Company has transferred such goods to the customer physically, that is, the customer has taken possession of such goods
physically; (4) the Company has transferred major risks and rewards of such goods to the customer, that is, the customer has obtained
major risks and rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the customer has obtained
control of such goods.
2. Revenue measurement
(1) The Company measures revenue based on the transaction price allocated to each single performance obligation. The transaction
price is the amount of consideration to which the Company is entitled arising from the transfer of goods or services to the customer,
excluding the amount collected on behalf of a third party and expected to be returned to the customer.
(2) If there is variable consideration in the contract, the Company determines the best estimate of the variable consideration based
on the expected value or the most likely amount. However, variable consideration is included in the transaction price if, and to the
extent that, it is highly probable that its inclusion will not result in a significant revenue reversal of accumulatively recognized revenue
in the future when the uncertainty has been subsequently resolved.
(3) If there is a major financing component in the contract, the Company determines the transaction price based on the presumed
amount payable in cash when the customer obtains the control of goods or services. The difference between that transaction price and
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the contract consideration is amortized over the period of the contract using the effective interest method. If at the inception of the
contract, the Company expects that the customer’s acquisition of control of goods or services is not more than one year from the
customer’s payment therefor, the major financing component in the contract will not be considered.
(4) If the contract has two or multiple performance obligations, the Company allocates the transaction price to each single
performance obligation in the contract by reference to relative standalone selling prices of goods promised thereby.
3. Specific methods for revenue recognition
(1) Revenue recognized at a point in time
The Company’s sales of TV shopping products, films and TV dramas and other goods belong to the obligation performed at a
point in time. The revenue is recognized when goods made for domestic market meet the following criteria: the Company has delivered
the products to the customer pursuant to the contract and the customer has accepted such products, the payment for products has been
received or the receipt of payment has been obtained and it is probable that the associated economic benefits will flow to the Company,
the legal ownership of the products has been transferred, and the major risks and rewards of the products have been transferred to the
customer. The revenue is recognized when goods made for foreign market meet the following criteria: the Company has declared the
products pursuant to the contract and obtained the bill of lading, the payment for products has been received or the receipt of payment
has been obtained and it is probable that the associated economic benefits will flow to the Company, the legal ownership of the products
has been transferred, and the major risks and rewards of the products have been transferred.
(2) Revenue recognized according to the progress of contract performance
The Company provides membership, artiste, operator and financial services, etc. As the customer obtains and consumes the
economic benefits generated by the Company’s performance when the Company performs the contract, the customer can control the
goods or services under construction in the process of the Company’s performance, the services or goods provided in the process of
the Company’s performance have irreplaceable uses, and the Company has the right to collect payment for the cumulative performance
that has been completed up to date throughout the term of the contract, the Company regards it as a performance obligation over time
and recognizes revenue according to the performance progress, unless the performance progress cannot be reasonably determined. The
Company determines the progress of performance obligation using the output method. When the performance progress cannot be
reasonably determined, and the costs incurred by the Company are expected to be recoverable, revenue is recognized to the extent of
costs incurred until the performance progress can be reasonably determined.
(3) The Company’s specific principles for the recognition and measurement of revenues earned in the sectors and lines of business
1) Revenue from sale of goods through TV channels, network channels, outbound channels, online to offline channels and other
channels
The goods sold by the Company are mainly delivered by logistics companies to the buyers or picked by the buyers themselves.
The Company recognizes the revenue from sale of goods when the goods have been delivered by logistics companies to the buyers and
signed for by the buyers and the period for return of goods has expired.
If the customer is a group, sales revenue is recognized when the group has received the goods and signed the receipt of the goods.
If credits are offered to the customers upon sale of goods, the Company allocates the amount received or receivable from the sale
of goods between the revenue from the sale of goods and the value of the credits, and recognizes the amount received or receivable
from the sale of goods net of the value of the credits as revenue, and the value of the credits as contract liabilities.
When the credits are exchanged by the customers, the portion of contract liabilities originally recognized in connection with the
credits exchanged is recognized as revenue, wherein, the amount of revenue recognized is determined according to the proportion of
the amount of the credits exchanged to the total estimated amount of the credits exchangeable.
2) Advertising revenue
Advertising revenue is recognized after the advertisements have been delivered or according to the settlement amount during the
process of service when all of the following conditions are satisfied: (i) the amount of revenue can be measured reliably; (ii) it is
probable that the economic benefits associated therewith will flow to the Company; and (iii) the costs incurred or to be incurred for the
delivery of advertisements can be measured reliably.
3) Membership revenue
Service revenue is recognized during the valid period of membership on a daily basis according to the top-up amount paid by the
members.
4) Royalty revenue
Royalty revenue includes copyright licensing revenue and revenue from joint copyright investment.
① Copyright licensing revenue is recognized when the license has been granted to the counter party and the license fee has been
received or the right to receive the license fee has been obtained under the relevant copyright license contract.
② Revenue from joint copyright investment
A. Investment in films and TV dramas and other programs in which the Company does not hold copyright
Applicable business: The Company participates in the production of films and TV dramas in the capacity of a co-investor under
the relevant investment agreement which explicitly provides that the return on investment receivable by the Company shall be a fixed
income or a risk investment income wherein the Company does not hold copyright as other investors. Income from such business is
recognized as investment income.
B. Investment in films and TV dramas and other programs in which the Company holds joint copyright
Applicable business: The Company participates in the production of films and TV dramas in the capacity of a co-investor under
the relevant investment agreement which explicitly provides that the Company shall participate in the income distribution or loss
sharing of the project in the capacity of a co-investor and holds copyright therein jointly with other investors in such proportion as
agreed. Revenue from release of television series is recognized when the production of the television series has been completed, the
films and TV dramas authority has examined the television series and issued a Television Series Release License, the copies, tapes and
other media of the television series have been delivered to the buyers and it is probable that the economic benefits associated therewith
will flow to the Company. Revenue from release of films is recognized when the production of the films has been completed, the films
and TV dramas authority has examined the films and issued a Film Release License, the film has been screened in theaters and the
settlement statement has been received from the relevant theater chains. Revenue from release of programs is recognized when the
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production of the programs has been completed, the copies, tapes and other media of the program have been delivered to the buyers
and it is probable that the economic benefits associated therewith will flow to the Company.
Such revenue is recognized in two different ways:
If the Company is responsible for release, when the criteria for recognition of revenue is met, the Company recognizes the
distribution income as agreed as operating revenue and records the share of income payable to the production partners as deductions
from revenue. If another party is responsible for release, when the Company receives the income settlement statement as agreed, the
Company recognizes the income receivable as “operating revenue”.
③ Specific methods for cost recognition
If the Company is responsible for the production of and accounting for film or television series, the cost actually incurred is
recorded as “inventories - production cost”. When the production fee advanced by the investors under the contract is received, such
amount is initially recorded as “contract liabilities”, and when the production has been completed and the film or television series is
ready for release, such amount is offset against the inventory cost of film or television series. If another party is responsible for the
production of and accounting for the film or television series, the production fee paid by the Company to the production partner under
the contract is initially recorded as “prepayments”, the travel expenses incurred by the Company directly in connection with the project
is recorded as “inventories - production cost”, and when the production has been completed and the film or television series is ready
for release, such amount is transferred to inventory cost. After receiving the cost or expense settlement vouchers or statements issued
by the producer and audited or confirmed by the co-investors, the assets originally recorded are adjusted according to the actual
settlement amount, by transferring the Company’s share of the cost of the film or television series investment project from
“prepayments” to “inventories - production cost”. After obtaining copyright in the film or television series under the contract, the actual
cost of the film or television series is wholly transferred to “inventories - goods on hand”, and the revenue earned is offset against the
cost using the percentage of completion method. Under the percentage of completion method, from the date the film or TV play is
granted a release permit (i.e. the date of satisfaction of the criteria for recognition of revenue), during the period of cost transfer, the
Company uses the cost transfer rate (the proportion of total cost of the film or TV play to the total planned revenue) to calculate and
determine the cost of sales to be transferred in the current period and the inventories to be recognized at the end of the period.
5) Revenue from operator service
Revenue from operator service is recognized according to the relevant business settlement statements or third-party or technical
background business data provided according to the relevant cooperation agreement.
The Company recognizes the revenue according to the settlement data provided by the operator and confirmed by the Company
and the operator prior to the balance sheet date, or if the settlement data is not obtained from the operator prior to the balance sheet
date, according to the data collected by the billing platform and other data and information available to the extent that the revenue can
be measured reliably, and adjusts the same upon actual settlement.
6) Revenue from sale of hardware
Revenue from sale of hardware is recognized on a monthly basis according to the quantity of intelligent terminal products actually
sold in the given month and their selling prices.
7) Recognition of revenue from artiste agent service
① Artiste performance service
The service period is relatively short. In this service, the Company mainly helps the artistes give commercial performance or
concerts, and recognizes the revenue after a contracted artiste has fulfilled his or her contractual obligations.
② Artiste shooting service
Shooting service includes participation by the artistes in the shooting of films and TV dramas and recording of programs. The
service period is about three months generally. The Company recognizes the revenue after a contracted artiste has fulfilled his or her
contractual obligations.
③ Artiste endorsement service
The term of an artiste’s endorsement is about 1-2 years generally. During the term of endorsement, the artiste needs to be featured
in video commercials, record theme songs, and participate in public relations and other activities. The revenue is recognized according
to the specific contract terms. If the contract provides that after the performance of the obligations by the artiste, and the service fee
already received by the Company will not be refunded except for force majeure, the service fee may be wholly recognized as revenue.
If the contract provides that, in addition to indicating the force majeure, the artiste needs to give exclusive endorsement or maintain his
or her good image, the revenue is recognized in installments during the term of endorsement.
8) Derivative revenue from films, TV dramas and programs
Derivative revenue from films, TV dramas and programs is recognized after the showing thereof, at such time as provided in the
relevant contract.
9) Revenue from games
The Company’s revenue from games mainly includes revenue from game copyright, game distribution service and self-developed
games, which are recognized as follows:
① Revenue from game copyright includes royalty revenue and minimum guarantee revenue. The royalties received by the
Company are recorded as contract liabilities upon receipt, and included in the operating revenue for the current period using the straight
line method during the term of agreement. The minimum guarantees received are recognized as revenue when all the risks and rewards
have been transferred in accordance with the schedule of payment and division of revenues as provided in the relevant contract or
agreement.
② Game distribution service is a mode of operation in which the Company obtains a license to operate an online game and then
enters into cooperation with Mango TV, 360 Game Center or other third-party channel platforms to jointly operate the game; the players
of the game need to be registered as users of the third-party channel, top up their accounts in the top-up system of the third-party
platform to obtain virtual cash, and use such virtual cash to purchase virtual props. In the mode of joint operation by a third party, each
third-party platform is responsible for the operation, promotion, charging service and management of billing system of its channel, and
the Company recognizes its share of revenue as the operating revenue as calculated according to the cooperation agreement concluded
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with the third-party platform and confirmed by the Company and the third-party platform.
③ Self-developed games include online games and standalone games. In the mode of self-operation of an online game, the
Company distributes and operates the game through its own or third-party channels, and is solely responsible for the operation,
promotion and maintenance of the game; the players of the game are directly registered with such channels and then log in to the game,
top up their accounts to obtain virtual cash, and use such virtual cash to purchase virtual props; after the game props purchased by the
players have been used up, the Company recognizes the amount actually paid and consumed by the players as the operating revenue.
Standalone games are available for downloading by the players in the form of a mobile standalone game package. When a player
purchases props of the game, the embedded program generates a billing instruction; the telecom carrier or service provider sends a
billing code by text message, and then the carrier confirms the deduction of the relevant telephone charge to complete the process of
billing and payment. The deduction and payment of the information charge for the mobile standalone game is irrevocable. After the
deduction of such charge by the carrier, the risks and rewards are transferred to the users. The Company’s standalone games are
distributed jointly with third parties. After the users have downloaded and installed the games, the Company is not responsible for the
management of the games or otherwise restricts the use of the games by the users, that is, the Company does not have control over
such games. In such mode, the Company recognizes its share of revenue as the operating revenue as calculated according to the
cooperation agreement concluded with the relevant third-party platform and confirmed by the Company and the third-party platform.
10) Revenue from H5 interaction
Revenue from H5 interaction mainly comes from H5 interactive advertisements placed by clients in the television programs of
Hunan TV, and is recognized after the showing of the relevant programs on Hunan TV.
11) Revenue from wireless value-added service
According to the wireless value-added service contract concluded by the Company and the relevant client, if the contract specifies
the total contract price, the contract price is allocated according to the schedule of payment during the term of license specified therein
if the contract price will be paid in installments, or wholly recognized as revenue after the delivery of service if the contract price will
be paid in one lump sum. If the contract does not specify the total contract price, the revenue is recognized according to the settlement
statements provided by the client.
Difference in the accounting policy for revenue recognition arising from adoption of different modes of operation for the same kind of
business
None
25. Contract costs
Assets related to contract costs include contract acquisition costs and contract performance costs.
If the incremental cost incurred by the Company to obtain a contract is expected to be recovered, it is recognized as an asset as
the cost of obtaining a contract. If the amortization period of the cost of obtaining a contract does not exceed one year, such cost is
directly included in the profit or loss for the current period.
The cost incurred by the Company to perform a contract is not governed by the standards on inventories, fixed assets or intangible
assets, and if meeting the following criteria, is recognized as an asset as the contract performance cost:
1. Such cost is directly related to an existing or expected contract, including expenses for direct labor, direct materials and
manufacturing (or similar expenses), costs to be clearly borne by the customer and other costs incurred only due to the contract;
2. Such cost increases the Company’s future resources for fulfilling its performance obligations; and
3. Such cost is expected to be recovered.
The Company amortizes the asset related to the contract cost on the same basis as the recognition of the revenue of the goods or
services related to the asset, and includes it in the profit or cost for the current period.
If the carrying amount of the asset related to the contract cost is higher than the remaining consideration expected to be obtained
due to the transfer of the goods or services related to the asset less the estimated cost, then the Company makes a provision for
impairment of the excess and recognizes it as an impairment loss for the asset. If the impairment factors for prior periods have changed
afterwards so that the remaining consideration expected to be obtained due to the transfer of the goods or services related to the asset
less the estimated cost is higher than the carrying amount of the asset, then the Company reverses the provision for impairment
originally made and include it in the profit or loss for the current period, provided that the carrying amount after reversal shall not
exceed the carrying amount the asset would have reached on the date of reversal had the provision for impairment been not made.
26. Government grants
1. Government grants are recognized if (1) the Company meets the conditions attaching to the government grants; and (2) the
Company will receive the government grants. If a government grant is in the form of a transfer of a monetary asset, the item is measured
at the amount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset, the item is measured
at fair value. If fair value is not reliably determinable, the item is measured at a nominal amount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered for purchasing, constructing or otherwise acquiring
long-term assets as provided by the applicable government documents, or in the absence of such express provision in the applicable
government documents, government grants whose primary condition is that the Company should purchase, construct or otherwise
acquire long-term assets. The government grants related to assets are offset against the carrying value of the related assets or recognized
as deferred income. Government grants related to assets recognized as deferred income are included in profit or loss over the service
life of the relevant assets on a reasonable and systemic basis. Government grants measured at nominal amount are directly recognized
in profit or loss for the current period. In case of sale, transfer, retirement or damage of the relevant assets before the end of intended
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Mango Excellent Media Co., Ltd. Annual Report 2023
service life, the balance of the unallocated deferred income is transferred to profit or loss for the period in which the assets are disposed
of.
3. Determination and accounting treatment of government grants related to income
Government grants related to income are government grants other than those related to assets. Government grants related to both
assets and income in which it is difficult to make a distinction between the portion related to assets and the portion related to income
are wholly classified as government grants related to income.
Government grants related to income as compensation for expenses or losses to be incurred in subsequent periods are recognized
as deferred income and in the period for recognizing the relevant costs, expenses or losses, included in profit or loss for the current
period or offset against the relevant costs. Government grants related to income as compensation for expenses or losses already incurred
are directly included in profit or loss for the current period or offset against the relevant costs.
4. Government grants related to day-to-day operations of the Company are recognized in other income or offset against the relevant
costs and expenses depending on the nature of economic business. Government grants not related to day-to-day operations of the
Company are recognized in non-operating revenues or expenses.
5. Accounting treatment of policy preferential loans and interest subsidies
(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank, and then the lending bank offers a loan to the
Company at the policy-based preferential interest rate, the Company recognizes the loan amount actually received as the recorded
amount of the loan, and calculates the borrowing costs according to the loan principal and such policy-based preferential interest rate.
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company, the Company offsets the corresponding
interest subsidy against the related borrowing costs.
27. Deferred tax assets / deferred tax liabilities
1. The difference between the tax base of an asset or liability and its carrying value (or in case of an item not recognized as asset
or liability whose tax base can be determined according to the applicable tax law, the difference between its tax base and carrying
value), is recognized as a deferred tax asset or deferred tax liability according to the tax rate applicable to the period in which the asset
or liability is expected to be recovered or settled.
2. Deferred income tax assets are recognized to the extent of the amount of income tax payable that will be available in future
periods against which deductible temporary differences are deductible. At the balance sheet date, deferred tax assets not recognized in
prior periods are recognized if there’s conclusive evidence that it is probable that sufficient taxable income will be available in future
periods against which the deductible temporary differences are deductible.
3. At the balance sheet date, the carrying value of a deferred tax asset is reviewed. The Company reduces the carrying value of a
deferred tax asset to the extent that it is no longer probable that sufficient taxable income will be available in future periods to allow
the benefit of the deferred tax asset to be utilized. Any such reduction in amount is reversed to the extent that it becomes probable that
sufficient taxable income will be available.
4. Current and deferred tax of the Company is recognized as income or an expense and included in profit or loss for the current
period, except to the extent that the tax arises from: (1) business merger; or (2) a transaction or event which is recognized directly in
owner’s equity.
5. When the following conditions are met at the same time, the Company will present the net amount of deferred income tax assets
and deferred income tax liabilities after offset: (1) It has the legal right to settle current income tax assets and current income tax
liabilities on a net basis; (2) deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the
same tax authority on the same taxpayer or related to different taxpayers, provided that during the period in which each of the future
material deferred income tax assets and deferred income tax liability is reversed, the taxpayer involved intends to net the current income
tax assets and current income tax liabilities, or acquire assets and settle debts at the same time.
28. Lease
(1) The Company as lessee
At the commencement date of the lease term, the Company recognizes a lease with a lease term not more than 12 months that
include no purchase option as short-term lease; and a lease at lower value when the individually leased asset is brand-new as low-value
asset lease. If the Company subleases or expects to sublease the leased assets, the original lease is not recognized as a low-value asset
lease.
For all short-term lease and low-value asset lease, the Company recognizes the lease payments in the cost of relevant assets or
profit or loss for the current period on a straight-line basis over the term of the relevant lease.
Except the above short-term leases and low-value asset leases subject to simplified treatment, the Company recognizes the right
of use assets and lease liabilities on the lease at the commencement date of the lease period.
(1) Right of use assets
The right of use asset is initially measured at cost, which includes: 1) the initially measured amount of the lease liability; 2) the
lease payments made on or before the commencement date of the lease term less the amount related to lease incentives (if any); 3) the
initial direct costs incurred by the lessee; 4) the costs that the lessee expects to incur in order to dismantle and remove the leased asset,
restore the site where the leased asset locates, or restore the leased asset to the condition agreed upon in the lease terms.
The Company depreciates the right of use asset on a straight-line basis. If it reasonably ensures that ownership of the leased assets
will be obtained at the expiry of the lease term, the Company will depreciate the leased assets over their remaining useful lives. If not,
the Company will depreciate the leased asset over the shorter of the lease term or the remaining useful life of the leased asset.
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(2) Lease liabilities
At the commence date of the lease term, the Company recognizes the present value of the outstanding lease payments as a lease
liability. When calculating the present value of lease payments, the interest rate in the lease is determined as the discount rate. If the
interest rate in the lease is unavailable, the Company’s incremental borrowing rate is determined as the discount rate. The difference
between the lease payments and their present value is recognized as an unrecognized financing expense, with interest expenses
recognized at the discount rate used to recognize the present value of the lease payments and charged to profit or loss for the current
period over the term of the relevant lease. The variable lease payments not measured as the lease liability are recognized in profit or
loss when they are actually incurred.
After the commencement date of the lease term, when there is a change in the substantive fixed payments, the expected amount
of payable for the guaranteed residual value, the index or rate used to determine the lease payments, or the evaluation result or actual
exercise of the purchase option, renewal option or termination option, the Company will remeasure the lease liability at the present
value of the changed lease payments and adjusts the carrying amount of the right of use asset accordingly. If the carrying amount of
the right of use asset has been reduced to nil but the lease liability still needs to be further reduced, the remaining amount will be
recognized in profit or loss for the current period.
(2) The Company as lessor
At the commencement date of the lease term, the Company classifies a lease as finance lease whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee, and all other leases as operating leases.
The Company recognizes lease receipts as rental income on a straight-line basis over the term of the relevant lease, with initial
direct costs incurred capitalized and apportioned on the same basis of recognizing rental income to include in profit or loss for the
current period separately. Variable lease payments obtained by the Company relevant to operating leases that are not included in the
lease receipts are recognized in profit or loss when they are actually incurred.
(1) Operating lease
The Company recognizes lease receipts as rental income on a straight-line basis over the term of the relevant lease, with initial
direct costs incurred capitalized and apportioned on the same basis of recognizing rental income to include in profit or loss for the
current period separately. Variable lease payments obtained by the Company relevant to operating leases that are not included in the
lease receipts are recognized in profit or loss when they are actually incurred.
(2) Finance lease
On the commencement date of the lease period, the Company recognizes the finance lease payments receivable in accordance
with the net lease investment (sum of the unguaranteed balance and the lease payment not received on the commencement date of the
lease period based on the present value discounted at the inherent interest rate of the lease), and derecognizes the finance lease assets.
At each phase of the lease period, the Company calculates and recognizes the interest income at the inherent interest rate of the lease.
The amount of variable lease payments obtained by the Company that are not accrued to the measurement of net lease investment
is accrued to the current profit and loss when actually incurred.
29. Other significant accounting policies and accounting estimates
Customer credit policy
The accounting for customer credits requires an estimate of the fair value and the time and possibility of use of credits. Valuation
and recording of customer credits require judgment and estimation. If the result of re-estimation is different from the current estimation,
such difference will affect the carrying value of contract liabilities for the period in which the estimation is changed.
30. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
Applicable □N/A
In RMB
Content and reason of changes in accounting policies Item significantly affected Amount affected
Since January 1, 2023, the Company has adopted the provisions
contained in the Interpretation of the Accounting Standards for Business
Enterprises No. 16 issued by the Ministry of Finance, regarding the
See Note
“accounting treatment of deferred taxes related to assets and liabilities
arising from single transactions to which the initial recognition
exemption does not apply”.
Note: Effect of adoption of the Interpretation of the Accounting Standards for Business Enterprises No. 16:
Since January 1, 2023, we have adopted the provisions contained in the Interpretation of the Accounting Standards for Business
Enterprises No. 16 issued by the Ministry of Finance, regarding the “accounting treatment of deferred taxes related to assets and
liabilities arising from single transactions to which the initial recognition exemption does not apply”, and adjusted the single
transactions to which such provisions apply that occurred during the period from the beginning of the earliest period in which we
adopted such provisions in the presentation of its financial statements for the first time, till the date of initial adoption of such provisions
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Mango Excellent Media Co., Ltd. Annual Report 2023
as follows: with respect to the taxable temporary difference and deductible temporary differences arising from lease liabilities and
right-of-use assets, provisions related to retirement obligations and corresponding assets recognized in connection with the single
transactions to which such provisions apply, at the beginning of the earliest period in which we adopted such provisions in the
presentation of its financial statements for the first time, the cumulative effect is treated as an adjustment to the opening retained
earnings and other related financial statement items for that period in accordance with such provisions and the provisions of the
Accounting Standards for Business Enterprises No. 18 “Income Tax”. The table shows the specific adjustments:
Item significantly affected Amount affected Remark
Items of the balance sheet at December
31, 2022
Deferred tax assets 6,782.33
Deferred tax liabilities 227,428.11
Undistributed profits -220,645.78
Items of the income statement for the
year ended December 31, 2022
Income tax expenses -47,210.10
(2) Changes in significant accounting estimates
□Applicable N/A
(3) Adjustments to related financial statement items for the period in which the new accounting standards were adopted for
the first time since 2023
□Applicable N/A
VI. Taxes
1. Major categories of taxes and tax rates
Tax type Taxation basis Tax rate
VAT payable is the output tax based on the
sales of goods and taxable labor income
VAT calculated pursuant to the tax law, net of 13%, 9%, 5%, 6%, 3%
the input tax that is allowed to be deducted
in the current period.
Consumption tax Taxable sales turnover (volume) 5%
Urban maintenance and construction tax Actually paid turnover tax 7%, 5%
Enterprise income tax Taxable income Tax exemption, 8.25%, 15%, 16.5%, 25%
Taxable service income stipulated by the
Cultural program expenditure 1.5%
tax law
If it is levied on an ad valorem basis, the
tax is calculated as 1.2% of the remaining
value after being deducted 20% of the
Property tax 1.2%, 12%
original value of the property; if it is levied
subject to rent, the tax is calculated as 12%
of the rental income.
Education surcharges Actually paid turnover tax 3%
Local education surcharges Actually paid turnover tax 2%
Disclosure of taxpayers with different rates of enterprise income tax:
Taxpayer Rate of enterprise income tax
Happigo Co., Ltd. Tax exemption
Happy Sunshine Tax exemption
Mango Studios Culture Co., Ltd. (“Mango Studios”) Tax exemption
Hunan Mango Entertainment Co., Ltd. (“Mango Entertainment”) Tax exemption
Hunan Happy Mango Fun Technology Co., Ltd. Tax exemption
Hunan E.E. Media Film and Television Production Co. Ltd. Tax exemption
Hunan Golden Eagle Cartoon Media Co., Ltd. (“Golden Eagle Cartoon”) Tax exemption
Hainan E.E. Media Co. Ltd. 15%
Happy Sunshine Xingmang Interactive Entertainment Media Co., Ltd. 15%
Xiaomang E-commerce Co., Ltd. 15%
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Mango Excellent Media Co., Ltd. Annual Report 2023
Hunan Maiji Park Cultural Development Co., Ltd. 5%
Dameiren Global Trading Co., Limited 8.25%, 16.5%
Mgtv.com (Hong Kong) Media Company Limited 8.25%, 16.5%
Other taxpayers not listed above 25%
2. Tax incentives
1. Happy Sunshine, Mango Studios, Mango Entertainment, Hunan Happy Mango Fun Technology Co., Ltd., Hunan E.E. Media
Film and Television Production Co. Ltd., Happigo and Golden Eagle Cartoon are enterprises transformed from cultural public
institutions with for-profit operations approved by the Ministry of Finance and the State Administration of Taxation. In accordance
with the Notice of Continuing Implementing Several Tax Policies for the Transformation of Cultural Public Institutions with For-Profit
Operations into Enterprises During the Cultural System Reform jointly released by the Ministry of Finance, the State Administration
of Taxation, and the Publicity Department of the CPC Central Committee (Cai Shui [2019] No. 16) in February 2019, cultural
enterprises transformed are qualified to be exempt from enterprise income tax within five years from January 1, 2019. This period is
the fifth year of exempting from enterprise income tax.
2. Pursuant to the List of the Second Batch of High and New Technology Enterprises Recognized and Filed by the Recognition
Authority of Hunan Province in 2023 jointly issued by the Office of the National Leading Group for Recognition Management of High
and New Technology Enterprises and the Hunan Provincial Department of Science and Technology, Xiaomang E-commerce Co., Ltd.
was recognized as a high and new technology enterprise with a term of three years (Certificate No.: GR202343005636), and therefore
is subject to a reduced enterprise income tax rate of 15% applicable to high and new technology enterprises from 2023 to 2025.
3. Pursuant to the List of the First Batch of High and New Technology Enterprises Recognized and Filed by the Recognition
Authority of Hunan Province in 2022 issued by the Office of the National Leading Group for Recognition Management of High and
New Technology Enterprises, Happy Sunshine was recognized as a high and new technology enterprise with a term of three years
(Certificate No.: GR202243000815), and therefore is subject to a reduced enterprise income tax rate of 15% applicable to high and
new technology enterprises from 2022 to 2024.
4. Pursuant to the Notice on the Preferential Enterprise Income Tax Policy for the Hainan Free Trade Port jointly released by the
Ministry of Finance and the State Administration of Taxation (Cai Shui [2020] No. 31), the encouraged enterprises registered and
actually operating at the Hainan Free Trade Port are subject to a reduced enterprise income tax rate of 15% from January 1, 2020 till
December 31, 2024. Happy Sunshine Xingmang Interactive Entertainment Media Co., Ltd. and Hainan E.E. Media Co. Ltd. met such
conditions, and therefore enjoyed such preferential enterprise income tax policy in 2023.
5. As stipulated by the Announcement of the General Administration of Taxation of the Ministry of Finance on Related Tax
Policies for Further Supporting the Development of SMEs and Private Businesses (Announcement No. 12 of the General
Administration of Taxation of the Ministry of Finance, 2023), from January 1, 2023 to December 31, 2027, taxable incomes of SMEs
shall be reduced to 25%, and enterprise income taxes shall be levied at a rate of 20%. Hunan Maiji Park Cultural Development Co.,
Ltd. is entitled the above preferential enterprise income tax policy for the period.
6. Pursuant to the Announcement of the Ministry of Finance and the State Administration of Taxation on Further Clarifying the
Value-added Tax Reduction and Exemption and Other Policies for Small-scale Value-added Tax Payers (Announcement of the
Ministry of Finance and the State Administration of Taxation [2023] No. 1), taxpayer engaged in producer services are permitted to
deduct their taxable income by an amount equal to 105% of their deductible input tax for the current period, and taxpayer engaged in
life services are permitted to deduct their taxable income by an amount equal to 110% of their deductible input tax for the current
period from January 1, 2023 till December 31, 2023.
7. In accordance with the Notice of the Ministry of Finance on Relevant Policies on Adjusting Certain Government-Managed
Funds (Cai Shui [2019] No. 46), from July 1, 2019 to December 31, 2024, development fees for cultural undertakings attributable to
the Central Treasury shall be reduced at 50% of the taxable income paid by the taxpayer. In accordance with the Notice of Huanan
Provincial Department of Finance on Relevant Policies on Adjusting Development Fees for Cultural Undertakings (Xiang Cai Zong
(2019) No. 11), from July 1, 2019 to December 31, 2024, local enterprises and institutions and individuals can pay the development
fees for cultural undertakings under a reduction rate of 50%.
VII. Notes to Items in the Consolidated Financial Statements
1. Cash and bank balances
In RMB
Item Closing balance Opening balance
Cash on hand 34,083.85 88,009.61
Bank deposits 11,857,589,366.06 10,345,526,756.10
Other monetary capital 24,584,807.69 24,067,334.48
Total 11,882,208,257.60 10,369,682,100.19
Other information:
Among the closing balance of bank deposits, RMB12,942,129.82 was frozen due to litigation, and RMB954,663.47 was security
deposits, the use of which was restricted.
Among the closing balance of other monetary capital, RMB995,119.88 was third-party platform deposits, the use of which was
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Mango Excellent Media Co., Ltd. Annual Report 2023
restricted.
2. Held-for-trading financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value with any changes
1,052,000,000.00 2,695,000,000.00
accrued to the current profits and losses
Incl.:
Finance products 1,052,000,000.00 2,695,000,000.00
Incl.:
Total 1,052,000,000.00 2,695,000,000.00
Other information:
3. Notes receivable
(1) Presentation of notes receivable by category
In RMB
Item Closing balance Opening balance
Banker’s acceptance bills 34,920,000.00 1,374,099,617.12
Commercial acceptance bills 50,439,883.64
Total 34,920,000.00 1,424,539,500.76
(2) Presentation by method of recognition of provision for bad debts
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carrying
Proportio Amoun Proportio Carrying value Amoun
Amount Amount Proportion Proportion value
n t n t
Incl.:
Notes receivable for
which the provision for 1,424,562 23,151. 1,424,539,5
bad debts were made by 34,920,000.00 100.00% 34,920,000.00 100.00% 0.01%
,652.53 77 00.76
group
Incl.:
Banker’s acceptance 1,374,099 1,374,099,6
bills 34,920,000.00 100.00% 34,920,000.00 96.46%
,617.12 17.12
Commercial acceptance 50,463,03 23,151. 50,439,883.
bills 3.54% 0.05%
5.41 77 64
1,424,562 23,151. 1,424,539,5
Total 34,920,000.00 100.00% 34,920,000.00 100.00% 0.01%
,652.53 77 00.76
Provisions for bad debts made by group:
In RMB
Closing balance
Item
Book balance Bad debt provision Proportion
Group of banker’s acceptance
34,920,000.00
bills
Total 34,920,000.00
Description of basis for determining the group:
Provisions for bad debts made for notes receivable in accordance with the general model of expected credit losses (“ECL”):
□Applicable N/A
(3) Provisions, recovery or reversal of bad debts for the current period
Provision for bad debts made for the current period:
In RMB
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Mango Excellent Media Co., Ltd. Annual Report 2023
Changes for the current period
Opening
Category Recovery or Closing balance
balance Provision Write-off Others
reversal
Provision for
bad debts by 23,151.77 -23,151.77
group
Total 23,151.77 -23,151.77
Significant recovery or reversal of bad debt provision for the current period:
□Applicable N/A
(4) Notes receivable already endorsed or discounted but not yet become due at the balance sheet date
In RMB
Item Balance derecognized at the end of the period Balance not derecognized at the end of the period
Banker’s acceptance
34,920,000.00
bills
Total 34,920,000.00
4. Accounts receivable
(1) Presentation by aging
In RMB
Aging Opening book balance Closing book balance
Within 1 year (inclusive) 2,943,842,242.71 2,673,410,461.03
1-2 years 397,974,645.55 312,602,330.35
2-3 years 148,659,620.53 253,671,558.04
Over 3 years 372,906,782.88 300,450,173.44
3-4 years 176,552,081.76 246,115,723.72
4-5 years 147,583,365.37 37,994,170.59
Over 5 years 48,771,335.75 16,340,279.13
Total 3,863,383,291.67 3,540,134,522.86
(2) Presentation by method of recognition of provision for bad debts
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carrying
Proportio Amoun Proportio Carrying value Amoun
Amount Amount Proportion Proportion value
n t n t
Accounts receivable for
which the provision for 64,684, 83,744,63 66,739, 17,004,676.
bad debts are made 81,268,801.50 2.10% 79.59% 16,584,676.55 2.37% 79.69%
124.95 4.94 958.39 55
individually
Incl.:
Accounts receivable for
which the provision for 302,175 3,456,389 233,959 3,222,430,3
bad debts are made by 3,782,114,490.17 97.90% 7.99% 3,479,938,693.60 97.63% 6.77%
,796.57 ,887.92 ,524.07 63.85
group
Incl.:
366,859 3,540,134 300,699 3,239,435,0
Total 3,863,383,291.67 100.00% 9.50% 3,496,523,370.15 100.00% 8.49%
,921.52 ,522.86 ,482.46 40.40
Provisions for bad debts made individually: RMB64,684,124.95
In RMB
Opening balance Closing balance
Name Bad debt Bad debt Reason for
Book balance Book balance Proportion
provision provision provisions
Likely to be non-
The first 23,383,374.87 16,777,045.64 23,383,374.87 16,777,045.64 71.75%
recoverable
The second 11,755,050.00 3,526,515.00 11,155,050.00 3,346,515.00 30.00% Likely to be non-
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Mango Excellent Media Co., Ltd. Annual Report 2023
recoverable
Expected to be
The third 10,786,000.00 10,786,000.00 10,786,000.00 10,786,000.00 100.00%
non-recoverable
Likely to be non-
Others 37,820,210.07 35,650,397.75 35,944,376.63 33,774,564.31 93.96%
recoverable
Total 83,744,634.94 66,739,958.39 81,268,801.50 64,684,124.95 --
Provisions for bad debts made by group: RMB302,175,796.57
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Aging group 2,965,806,985.22 302,175,796.57 10.19%
Group of receivables from
related parties controlled by the 816,307,504.95
same actual controller
Total 3,782,114,490.17 302,175,796.57
Description of basis for determining the group:
Provisions for bad debts made for notes receivable in accordance with the general model of ECL:
□Applicable N/A
(3) Provisions, recovery or reversal of bad debts for the current period
Provisions for bad debts made for the current period
In RMB
Changes for the current period
Category Opening balance Recovery or Closing balance
Provision Write-off Others
reversal
Provisions for bad
debts made 66,739,958.39 192,870.14 2,248,703.58 64,684,124.95
individually
Provisions for bad
233,959,524.07 68,216,272.50 302,175,796.57
debts made by group
Total 300,699,482.46 68,409,142.64 2,248,703.58 366,859,921.52
Significant recovery or reversal of bad debt provision for the current period:
In RMB
Basis for determining
Amount of recovery or the proportion of
Entity Reason for recovery Method of recovery
reversal provision for bad debts
and its reasonableness
No significant provision for bad debts was recovered or reversal in the current period.
(4) Accounts receivable actually written off for the current period
In RMB
Item Write-off amount
Information of significant accounts receivable that are written off:
In RMB
Whether the amount
Nature of accounts Write-off procedures
Entity Write-off amount Reason for write-off arises from related-
receivable performed
party transactions
Description of write-off of accounts receivable:
No accounts receivable was actually written off in the current period.
(5) Top five closing balances of accounts receivable and contract assets categorized by debtor
In RMB
Total closing Proportion of total
Closing balance of Closing balance of
Closing balance of balance of closing balance of
Entity accounts provisions for bad
contract assets accounts accounts
receivable debts
receivable and receivable and
121
Mango Excellent Media Co., Ltd. Annual Report 2023
contract assets contract assets
The first 407,019,813.68 453,681,820.30 860,701,633.98 18.11% 43,129,770.17
The second 379,464,569.15 379,464,569.15 7.98%
The third 333,165,220.54 333,165,220.54 7.01% 16,658,261.03
The fourth 264,411,329.80 264,411,329.80 5.56% 14,220,566.49
The fifth 192,697,344.54 192,697,344.54 4.05%
Total 1,576,758,277.71 453,681,820.30 2,030,440,098.01 42.71% 74,008,597.69
5. Contract assets
(1) Details of contract assets
In RMB
Closing balance Opening balance
Item Bad debt Bad debt
Book balance Carrying value Book balance Carrying value
provision provision
Operator
890,102,310.00 51,410,460.86 838,691,849.14 984,299,576.93 54,895,640.42 929,403,936.51
business
total 890,102,310.00 51,410,460.86 838,691,849.14 984,299,576.93 54,895,640.42 929,403,936.51
(2) Presentation by method of recognition of provision for bad debts
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carrying
Proportio Amoun Proportio Carrying value Amoun
Amount Amount Proportion Proportion value
n t n t
Incl.:
Provision for bad debts 51,410, 984,299,5 54,895, 929,403,936
made by group 890,102,310.00 100.00% 5.78% 838,691,849.14 100.00% 5.58%
460.86 76.93 640.42 .51
Incl.:
51,410, 984,299,5 54,895, 929,403,936
Total 890,102,310.00 100.00% 5.78% 838,691,849.14 100.00% 5.58%
460.86 76.93 640.42 .51
Total amount of provision for bad debts made by group: RMB51,410,460.86.
In RMB
Closing balance
Item
Book balance Bad debt provision Proportion
Group of operator business 890,102,310.00 51,410,460.86 5.78%
Total 890,102,310.00 51,410,460.86
Description of basis for determining the group:
Provisions for bad debts made in accordance with the general model of ECL:
□Applicable N/A
(3) Provisions, recovery or reversal of bad debts for the current period
In RMB
Item Provision Recovery or reversal Write-off Reason
Provision for bad debts
-3,485,179.56
made by group
Total -3,485,179.56 -
Significant recovery or reversal of bad debt provision for the current period:
In RMB
Basis for determining
Amount of recovery or the proportion of
Entity Reason for recovery Method of recovery
reversal provision for bad debts
and its reasonableness
Other information:
122
Mango Excellent Media Co., Ltd. Annual Report 2023
(4) Accounts receivable actually written off for the current period
In RMB
Item Write-off amount
Information of significant accounts receivable that are written off:
In RMB
Whether the amount
Nature of accounts Write-off procedures
Entity Write-off amount Reason for write-off arises from related-
receivable performed
party transactions
Description of write-off of accounts receivable:
No contract asset was actually written off in the current period.
Other information:
6. Accounts receivable financing
(1) Presentation of accounts receivable financing by category
In RMB
Item Closing balance Opening balance
Banker’s acceptance bills 690,394,858.57 49,054,442.19
Letters of credit 8,000,000.00
Total 698,394,858.57 49,054,442.19
(2) Presentation by method of recognition of provision for bad debts
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carrying
Proportio Amoun Proportio Carrying value Amoun
Amount Amount Proportion Proportion value
n t n t
Incl.:
Provision for bad debts 49,054,44 49,054,442.
made by group 698,394,858.57 100.00% 698,394,858.57 100.00%
2.19 19
Incl.:
49,054,44 49,054,442.
Total 698,394,858.57 100.00% 698,394,858.57 100.00%
2.19 19
Total amount of provision for bad debts made by group: Nil.
Closing balance
Item
Book balance Bad debt provision Proportion
Provision for bad debts made
698,394,858.57
by group
Total 698,394,858.57
Description of basis for determining the group:
Provisions for bad debts made in accordance with the general model of ECL:
In RMB
Stage I Stage II Stage III
Bad debt provision Lifetime ECL
Future 12-month Lifetime ECL (with Total
(without credit
ECL credit impairment)
impairment)
Balance at January 1, 2023 in
the current period:
Basis for determination of stages and proportion of provision for bad debts:
Changes in book balance whose loss allowance changed significantly in the current period:
123
Mango Excellent Media Co., Ltd. Annual Report 2023
(3) Accounts receivable financing already endorsed or discounted but not yet become due at the balance sheet
date
In RMB
Item Balance derecognized at the end of the period Balance not derecognized at the end of the period
Banker’s acceptance
583,906,273.61
bills
Letters of credit 271,949,741.00
Total 855,856,014.61
7. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 47,852,640.07 57,117,565.37
Total 47,852,640.07 57,117,565.37
(1) Other receivables
1) Classification of other receivables by nature
In RMB
Nature Closing book balance Opening book balance
Security deposit 19,318,333.70 36,034,726.83
Amount due to or from related parties 5,196,090.37 6,476,459.35
Suspense payments receivable 2,490,337.84 4,223,880.28
Petty cash 9,418,011.24 8,481,654.54
Receivables and payables 24,349,805.30 13,444,936.71
Total 60,772,578.45 68,661,657.71
2) Presentation by aging
In RMB
Aging Closing book balance Opening book balance
Within 1 year (inclusive) 29,587,160.90 38,308,635.19
1-2 years 6,355,747.68 5,999,901.68
2-3 years 5,244,596.68 8,340,533.84
Over 3 years 19,585,073.19 16,012,587.00
3-4 years 6,159,143.40 3,872,664.29
4-5 years 1,515,668.57 7,395,551.78
Over 5 years 11,910,261.22 4,744,370.93
Total 60,772,578.45 68,661,657.71
3) Presentation by method of recognition of provision for bad debts
Applicable □N/A
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carrying
Proportio Amoun Proportio Carrying value Amoun
Amount Amount Proportion Proportion value
n t n t
Provision for bad debts 8,986,4 9,164,635 8,237,3
made individually 9,913,746.23 16.31% 90.65% 927,273.03 13.35% 89.88% 927,273.03
73.20 .72 62.69
Incl.:
Provision for bad debts
made by group 50,858,832.22 83.69% 3,933,4 7.73% 46,925,367.04 59,497,02 86.65% 3,306,7 5.56% 56,190,292.
124
Mango Excellent Media Co., Ltd. Annual Report 2023
65.18 1.99 29.65 34
Incl.:
12,919, 68,661,65 11,544, 57,117,565.
Total 60,772,578.45 100.00% 21.26% 47,852,640.07 100.00% 16.81%
938.38 7.71 092.34 37
Provisions for bad debts made individually: RMB8,986,473.20.
In RMB
Opening balance Closing balance
Name Bad debt Bad debt Reason for
Book balance Book balance Proportion
provision provision provisions
Provision for bad
Likely to be non-
debts made 9,164,635.72 8,237,362.69 9,913,746.23 8,986,473.20 90.65%
individually recoverable
Total 9,164,635.72 8,237,362.69 9,913,746.23 8,986,473.20 --
Provisions for bad debts made by group: RMB3,933,465.18.
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Group of receivables from
related parties controlled by the 3,166,325.68
same actual controller
Group of security deposits
18,789,813.71
receivable
Aging group 28,902,692.83 3,933,465.18 13.61%
Total 50,858,832.22 3,933,465.18
Description of basis for determining the group:
Provisions for bad debts made in accordance with the general model of ECL:
In RMB
Stage I Stage II Stage III
Provisions for bad
Lifetime ECL (without Lifetime ECL (with Total
debts Future 12-month ECL
credit impairment) credit impairment)
Balance as at January
523,940.68 122,362.25 10,897,789.41 11,544,092.34
1, 2023
Balance as at January
1, 2023 in the current
period
-- Stage II -105,903.09 105,903.09
-- Stage III -50,301.32 50,301.32
Current provision 594,006.97 -69,564.92 874,726.24 1,399,168.29
Current write-off 23,322.25 23,322.25
Balance as at
1,012,044.56 108,399.10 11,799,494.72 12,919,938.38
December 31, 2023
Basis for determination of stages and proportion of provision for bad debts:
Changes in book balance whose loss allowance changed significantly in the current period:
□Applicable N/A
4) Provisions, recovery or reversal of bad debts for the period
Provision for bad debts made for the current period:
In RMB
Changes for the current period
Opening
Category Recovery or Closing balance
balance Provision Write-off Others
reversal
Provisions for
11,544,092.34 1,399,168.29 23,322.25 12,919,938.38
bad debts
Total 11,544,092.34 1,399,168.29 23,322.25 12,919,938.38
Including significant amounts recovered or reversed from the current provision for bad debts:
In RMB
Basis for determining
Amount of recovery or the proportion of
Entity Reason for recovery Method of recovery
reversal provision for bad debts
and its reasonableness
125
Mango Excellent Media Co., Ltd. Annual Report 2023
No significant provision for bad debts was recovered or reversal in the current period.
5) Other receivables actually written off for the period
In RMB
Item Write-off amount
Other receivables 23,322.25
Descriptions of significant other receivables that are written off:
In RMB
Whether the
Write-off payments were
Nature of other Reasons for write-
Entity Write-off amount procedures generated from
receivables off
performed related-party
transactions
Descriptions of write-off of other receivables:
6) Top five closing balances of other receivables categorized by debtor
In RMB
Proportion in total Closing balance of
Entity Nature Closing balance Aging closing balance of provisions for bad
other receivables debts
Receivables and
The first 8,546,713.60 Within 1 year 14.06% 427,335.68
payables
Amount due to or
The second from related 2,029,764.69 Over 5 years 3.34% 2,029,764.69
parties
Receivables and
The third 2,000,000.00 1-2 years 3.29% 200,000.00
payables
The fourth Security deposit 2,000,000.00 Within 1 year 3.29%
Receivables and
The fifth 1,746,310.20 Within 1 year 2.87% 87,315.51
payables
Total 16,322,788.49 26.85% 2,744,415.88
8. Prepayments
(1) Presentation of prepayments by aging
In RMB
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 703,944,332.23 69.24% 1,121,304,181.75 67.49%
1-2 years 116,269,839.01 11.44% 446,355,580.68 26.87%
2-3 years 174,573,702.88 17.17% 14,407,355.13 0.87%
Over 3 years 21,876,500.06 2.15% 79,323,028.73 4.77%
Total 1,016,664,374.18 1,661,390,146.29
Reasons for overdue settlement of prepayments with significant amounts and aged more than 1 year:
Entity Closing balance Reasons for unsettlement
The first Prepayments for copyrights, pending
58,653,586.43
broadcasting
The second 49,999,516.00 Undelivered goods
The third Prepayments for copyrights, pending
31,733,651.04
broadcasting
Sub-total 140,386,753.47
126
Mango Excellent Media Co., Ltd. Annual Report 2023
(2) Top five closing balances of prepayments categorized by receivers
Entity Book balance Proportion to total
prepayments (%)
The first 99,622,641.47 8.71
The second 84,528,302.21 7.39
The third 59,207,547.14 5.18
The fourth 59,113,207.92 5.17
The fifth 58,653,586.43 5.13
Sub-total 361,125,285.17 31.58
Other information:
9. Inventories
Did the Company need to comply with the disclosure requirements on the real estate industry?
No
(1) Categories of inventories
In RMB
Closing balance Opening balance
Provision for Provision for
decline in value decline in value
of inventories or of inventories or
Item
Book balance for impairment of Carrying value Book balance for impairment of Carrying value
contract contract
performance performance
costs costs
Raw materials 70,747,527.56 70,747,527.56 110,454,024.29 110,454,024.29
Work in process 760,533,375.34 760,533,375.34 756,888,334.48 756,888,334.48
Goods on hand 1,023,495,995.75 152,362,654.35 871,133,341.40 829,494,139.87 140,737,871.18 688,756,268.69
Turnover
807,117.72 41,751.25 765,366.47 863,306.85 41,751.25 821,555.60
materials
Goods upon
14,256,078.56 14,256,078.56 51,898,680.10 51,898,680.10
delivery
Total 1,869,840,094.93 152,404,405.60 1,717,435,689.33 1,749,598,485.59 140,779,622.43 1,608,818,863.16
(2) Provision for decline in value of inventories and for impairment of contract performance costs
In RMB
Increase in the current period Decrease in the current period
Item Opening balance Reversal or write- Closing balance
Provision Others Others
off
Work in process 140,737,871.18 16,104,442.05 4,479,658.88 152,362,654.35
Goods on hand 41,751.25 41,751.25
Total 140,779,622.43 16,104,442.05 4,479,658.88 152,404,405.60
As to the Company’s products directly used for sale, the net realizable value was recognized by: the estimated selling price of the
inventory minus the estimated selling expenses and relevant taxes. External sales have been realized with respect to the current write-
off of provision for decline in value of inventories.
Provision for decline in value of inventories made by group:
In RMB
End of the current period Beginning of the current period
Name of group Provision for Provision for
Closing balance Proportion Opening balance Proportion
decline decline
Criteria for provision for decline in value of inventories made by group:
127
Mango Excellent Media Co., Ltd. Annual Report 2023
10. Non-current assets due within one year
In RMB
Item Closing balance Opening balance
(1) Debt investments due within one year
□Applicable N/A
(2) Other debt investments due within one year
□Applicable N/A
11. Other current assets
In RMB
Item Closing balance Opening balance
Prepayments for Internet access
7,628,577.66 13,696,428.21
cooperation
Input VAT to be deducted 115,296,910.67 83,150,519.10
Others 7,252,743.79 16,615,582.49
Total 130,178,232.12 113,462,529.80
Other information:
12. Long-term equity investments
In RMB
Opening Increase or decrease for the period Closing
Opening balance of Closing balance of
Additio Investment Adjustment Declared Provisio
balance provisions Other balance provision
Investee nal Decreased profit or loss in other cash ns for
(carrying for equity Others (carrying for
investm investment under equity comprehensi dividends impairm
value) impairme changes value) diminution
ent method ve income or profits ent
nt in value
I. Joint ventures
II. Associates
Shanghai
Mamma Mia
Interactive 4,123,864 17,181,90 17,181,905.
Entertainment -4,123,864.73
.73 5.95 95
Technology Co.,
Ltd.
4,123,864 17,181,90 17,181,905.
Sub-total -4,123,864.73
.73 5.95 95
4,123,864 17,181,90 17,181,905.
Total -4,123,864.73
.73 5.95 95
Recoverable amount determined based on fair value net of disposal cost:
□Applicable N/A
Recoverable amount determined based on present value of expected future cash flows:
□Applicable N/A
Reason of significant difference between the information set out above and the information used in prior year’s impairment assessment
or external information:
Reason of significant difference between the information used in prior year’s impairment assessment and the actual situation of the
current year:
Other information:
128
Mango Excellent Media Co., Ltd. Annual Report 2023
13. Investment properties
(1) Investment properties measured at cost
Applicable □N/A
Unit: RMB
Item Buildings Land use right Construction in process Total
I. Original carrying value:
1. Opening balance 84,309,445.29 84,309,445.29
2. Increase in the
current period
(1) Purchase
(2) Inventory/fixed
assets/transfer from
construction in progress
(3) Increase due to
business merger
3. Current decreases
(1) Disposal
(2) Other
amounts transferred out
4. Closing balance 84,309,445.29 84,309,445.29
II. Accumulative
depreciation and
accumulative
amortization
1. Opening balance 928,411.69 928,411.69
2. Current increase 2,296,981.37 2,296,981.37
(1) Provision or
2,296,981.37 2,296,981.37
amortization
3. Current decreases
(1) Disposal
(2) Other
amounts transferred out
4. Closing balance 3,225,393.06 3,225,393.06
III. Provision for
impairment
1. Opening balance
2. Current increase
(1) Provision
3. Current decreases
(1) Disposal
(2) Other
amounts transferred out
4. Closing balance
IV. Carrying value
1. Closing carrying
81,084,052.23 81,084,052.23
value
2. Opening carrying
83,381,033.60 83,381,033.60
value
Recoverable amount determined based on fair value net of disposal cost:
□Applicable N/A
Recoverable amount determined based on present value of expected future cash flows:
□Applicable N/A
129
Mango Excellent Media Co., Ltd. Annual Report 2023
Reason of significant difference between the information set out above and the information used in prior year’s impairment assessment
or external information:
Reason of significant difference between the information used in prior year’s impairment assessment and the actual situation of the
current year:
Other information:
(2) Investment properties measured at fair value
□Applicable N/A
14. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 142,419,568.37 173,715,579.21
Total 142,419,568.37 173,715,579.21
(1) Details of fixed assets
In RMB
Electronic
Machines and equipment, Transportation
Item Buildings Others Total
equipment devices and equipment
furniture
I. Original carrying
value:
1. Opening balance 58,268,091.66 328,859,161.06 309,321,735.99 18,299,945.31 11,000,000.00 725,748,934.02
2. Increase in the
722,319.86 9,982,676.11 10,704,995.97
current period
(1) Purchase 722,319.86 9,982,676.11 10,704,995.97
(2) Transfer from
construction in
progress
(3) Increase due to
business merger
3. Decrease in the
19,097,888.95 4,586,880.44 2,607,951.00 26,292,720.39
current period
(1) Disposal or
19,097,888.95 4,586,880.44 2,607,951.00 26,292,720.39
retirement
4. Closing balance 58,268,091.66 310,483,591.97 314,717,531.66 15,691,994.31 11,000,000.00 710,161,209.60
II. Accumulated
depreciation
1. Opening balance 14,507,279.97 290,829,659.11 232,228,293.48 14,073,007.76 551,638,240.32
2. Increase in the
1,908,705.37 12,867,792.06 25,979,281.21 1,034,197.47 41,789,976.11
current period
(1) Provision 1,908,705.37 12,867,792.06 25,979,281.21 1,034,197.47 41,789,976.11
3. Decrease in the
19,086,373.11 4,517,763.12 2,477,553.46 26,081,689.69
current period
(1) Disposal or
19,086,373.11 4,517,763.12 2,477,553.46 26,081,689.69
retirement
4. Closing balance 16,415,985.34 284,611,078.06 253,689,811.57 12,629,651.77 567,346,526.74
III. Provision for
impairment
130
Mango Excellent Media Co., Ltd. Annual Report 2023
1. Opening balance 391,088.27 4,026.22 395,114.49
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal or
retirement
4. Closing balance 391,088.27 4,026.22 395,114.49
VI. Carrying value
1. Closing balance 41,852,106.32 25,481,425.64 61,023,693.87 3,062,342.54 11,000,000.00 142,419,568.37
2. Opening balance 43,760,811.69 37,638,413.68 77,089,416.29 4,226,937.55 11,000,000.00 173,715,579.21
(2) Fixed assets leased out under operating lease
In RMB
Item Closing carrying value
Buildings 22,478,413.02
15. Right-of-use assets
(1) Details of right-of-use assets
In RMB
Item Buildings Total
I. Original carrying value:
1. Opening balance 276,220,823.46 276,220,823.46
2. Increase in the current period 138,902,030.11 138,902,030.11
(1) Lease in 138,902,030.11 138,902,030.11
3. Decrease in the current period 66,733,461.50 66,733,461.50
(1) Disposal 33,057,412.03 33,057,412.03
(2) Expiration of lease 33,676,049.47 33,676,049.47
4. Closing balance 348,389,392.07 348,389,392.07
II. Accumulated depreciation
1. Opening balance 95,426,037.24 95,426,037.24
2. Increase in the current period 83,840,720.26 83,840,720.26
(1) Provision 83,840,720.26 83,840,720.26
3. Decrease in the current period 59,464,779.04 59,464,779.04
(1) Disposal 25,788,729.57 25,788,729.57
(2) Expiration of lease 33,676,049.47 33,676,049.47
4. Closing balance 119,801,978.46 119,801,978.46
III. Provision for impairment
1. Opening balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
4. Closing balance
VI. Carrying value
1. Closing balance 228,587,413.61 228,587,413.61
2. Opening balance 180,794,786.22 180,794,786.22
131
Mango Excellent Media Co., Ltd. Annual Report 2023
16. Intangible assets
(1) Details of intangible assets
In RMB
Patent
Non- Trademark licensing
Films and TV
Land use Paten patent s and fees and Game
Item dramas Software Total
rights t technolog domain program copyright
copyright
y names adaptation
rights
I. Original
carrying
value
1. Opening 33,157,507. 25,809,815,188. 438,538,674. 4,746,884. 36,792,452. 27,920,810. 26,350,971,517.
balance 40 69 17 13 82 64 85
2. Increase
in the 6,267,314,397.0 3,944,832.9 6,272,670,365.5
1,411,135.55
current 1 4 0
period
(1) 6,267,314,397.0 3,944,832.9 6,272,670,365.5
1,411,135.55
Purchase 1 4 0
(2) Internal
research
and
developme
nt
(3) Increase
due to
business
mergers
3. Decrease
in the
595,900,892.55 170,173.24 596,071,065.79
current
period
(1)
595,900,892.55 170,173.24 596,071,065.79
Disposal
4. Closing 33,157,507. 31,481,228,693. 439,949,809. 4,746,884. 36,792,452. 31,695,470. 32,027,570,817.
balance 40 15 72 13 82 34 56
II.
Accumulat
ed
amortizatio
n
1. Opening 7,838,254.2 19,184,357,541. 137,074,359. 3,832,642. 28,040,736. 21,826,303. 19,382,969,838.
balance 4 85 91 90 11 76 77
2. Increase
in the 5,078,308,521.1 42,334,144.1 1,875,367.8 3,398,750.3 5,126,794,678.2
676,683.82 201,211.00
current 9 2 0 4 7
period
(1) 5,078,308,521.1 42,334,144.1 1,875,367.8 3,398,750.3 5,126,794,678.2
676,683.82 201,211.00
Provision 9 2 0 4 7
3. Decrease
in the
595,900,892.55 170,173.24 596,071,065.79
current
period
(1)
595,900,892.55 170,173.24 596,071,065.79
Disposal
4. Closing 8,514,938.0 23,666,765,170. 179,408,504. 4,033,853. 29,916,103. 25,054,880. 23,913,693,451.
balance 6 49 03 90 91 86 25
III.
Provision
132
Mango Excellent Media Co., Ltd. Annual Report 2023
for
impairment
1. Opening
balance
2. Increase
in the
current
period
(1)
Provision
3. Decrease
in the
current
period
(1)
Disposal
4. Closing
balance
VI.
Carrying
value
1. Closing 24,642,569. 7,814,463,522.6 260,541,305. 6,876,348.9 6,640,589.4 8,113,877,366.3
713,030.23
balance 34 6 69 1 8 1
2. Opening 25,319,253. 6,625,457,646.8 301,464,314. 8,751,716.7 6,094,506.8 6,968,001,679.0
914,241.23
balance 16 4 26 1 8 8
Proportion of intangible assets generated from the Company’s internal research and development to the balance of intangible assets at
the end of the period: 0.90%.
17. Long-term prepaid expenses
In RMB
Increase in the
Item Opening balance Amortization Other decrease Closing balance
current period
Projects of
rebuilding and
88,341,119.22 12,626,857.56 31,314,872.78 69,653,104.00
decoration for rented
buildings
Total 88,341,119.22 12,626,857.56 31,314,872.78 69,653,104.00
Other information:
18. Deferred tax assets / deferred tax liabilities
(1) Deferred tax assets not offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
difference difference
Provision for
355,596,582.46 54,294,735.45
impairment of assets
Unrealized profits on
93,422,322.40 14,013,348.36
intragroup transactions
Intangible assets 10,377,237,346.29 1,556,627,584.71
Lease liabilities 204,140,260.49 38,732,376.27 80,860,974.39 15,747,631.58
Deferred income 37,912,257.53 5,886,838.63
Income from equity
6,855,915.19 1,028,387.28
investment
Provisions 3,156,100.00 473,415.00
Total 11,078,320,784.36 1,671,056,685.70 80,860,974.39 15,747,631.58
133
Mango Excellent Media Co., Ltd. Annual Report 2023
(2) Deferred tax liabilities not offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
difference difference
Right-of-use assets 228,587,413.61 42,360,807.51 73,622,532.30 15,968,277.36
Total 228,587,413.61 42,360,807.51 73,622,532.30 15,968,277.36
(3) Deferred tax assets and deferred tax liabilities presented on a netting basis
In RMB
Closing offset amount Closing balance of Opening offset amount Opening balance of
Item of deferred tax assets deferred tax assets or of deferred tax assets deferred tax assets or
and liabilities liabilities after offset and liabilities liabilities after offset
Deferred tax assets 42,266,467.32 1,628,790,218.38 15,740,849.25 6,782.33
Deferred tax liabilities 42,266,467.32 94,340.19 15,740,849.25 227,428.11
(4) Details of unrecognized deferred tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary
364,843,876.01 9,370,255,527.90
differences
Deductible losses 1,049,348,341.90 837,495,510.21
Total 1,414,192,217.91 10,207,751,038.11
(5) Deductible losses, for which no deferred tax assets are recognized, will expire in the following year
In RMB
Year Closing balance Opening balance Remark
2023 33,995,918.61
2024 383,268.85 383,268.85
2025 39,485,265.41 39,666,144.36
2026 349,142,170.13 352,766,517.40
2027 393,914,930.28 410,683,660.99
2028 266,422,707.23
Total 1,049,348,341.90 837,495,510.21
Other information:
19. Other non-current assets:
In RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment
Prepayments for
equipment and 1,257,003.74 1,257,003.74 35,450,007.57 35,450,007.57
construction projects
Total 1,257,003.74 1,257,003.74 35,450,007.57 35,450,007.57
Other information:
20. Assets subject to restrictions on ownership or right of use
In RMB
134
Mango Excellent Media Co., Ltd. Annual Report 2023
End of the current period Beginning of the current period
Item Type of Reason of Type of Reason of
Book balance Carrying value Book balance Carrying value
restriction restriction restriction restriction
Freeze due Freeze due
to to
litigation, litigation,
security security
Cash and deposit deposit
Freeze and Freeze and
bank 14,891,913.17 14,891,913.17 and third- 24,363,026.41 24,363,026.41 and third-
security security
balances party party
platform platform
account account
security security
deposit deposit
Endorsed Endorsed
or or
Notes Endorsement discounted Endorsement discounted
34,920,000.00 34,920,000.00 1,024,395,661.37 1,024,395,661.37
receivable and discount but yet not and discount but yet not
matured matured
bills bills
Total 49,811,913.17 49,811,913.17 1,048,758,687.78 1,048,758,687.78
Other information:
21. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Item Closing balance Opening balance
Pledge borrowings 1,018,145,573.43
Credit borrowings - principal 33,731,500.00 39,731,500.00
Credit borrowings - interest 49,825.60 55,403.37
Total 33,781,325.60 1,057,932,476.80
Description for categories of short-term borrowings:
The pledged loans are banker’s acceptance bills and commercial acceptance bills of small commercial banks that have already been
discounted yet not derecognized at the end of the period.
22. Notes payable
In RMB
Category Closing balance Opening balance
Commercial acceptance bills 121,027,286.03 403,807,532.47
Banker’s acceptance bills 585,287,605.99 1,237,194,311.78
Letters of credit 1,008,178,382.30
Total 1,714,493,274.32 1,641,001,844.25
Total notes payable matured but not paid yet is RMB0.00 at the end of the period.
23. Accounts payable
(1) Details of accounts payable
In RMB
Item Closing balance Opening balance
Payments for purchase of engineering
5,211,653,685.68 4,929,885,871.44
equipment and goods
Total 5,211,653,685.68 4,929,885,871.44
135
Mango Excellent Media Co., Ltd. Annual Report 2023
(2) Significant accounts payable aged over one year or overdue
In RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
The first 50,395,471.69 Not yet due for settlement
The second 49,410,599.97 Not yet due for settlement
The third 47,077,269.85 Not yet due for settlement
The fourth 40,892,106.88 Not yet due for settlement
The fifth 38,679,245.29 Not yet due for settlement
The sixth 30,159,886.01 Not yet due for settlement
Total 256,614,579.69
Other information:
24. Other payables
In RMB
Item Closing balance Opening balance
Dividends payable 310,000,000.00
Other payables 118,868,606.40 198,775,724.99
Total 118,868,606.40 508,775,724.99
(1) Dividends payable
In RMB
Item Closing balance Opening balance
Dividends on ordinary shares 310,000,000.00
Total 310,000,000.00
Other information, including the reason for failure to pay any material dividends overdue for more than one year:
(2) Other payables
1) Other payables by nature
In RMB
Item Closing balance Opening balance
Receivables and payables 89,952,391.96 167,244,129.47
Security deposit 28,916,214.44 31,531,595.52
Total 118,868,606.40 198,775,724.99
2) Other significant payables aged over one year
In RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
The first 3,793,780.40 Not yet due for settlement
Total 3,793,780.40
3) Top 5 other payables in terms of closing balance categorized by counterparty
Other information:
136
Mango Excellent Media Co., Ltd. Annual Report 2023
25. Contract liabilities
In RMB
Item Closing balance Opening balance
Payment for goods 326,891,199.04 346,714,804.82
Investments in films and TV dramas co-
55,498,792.71 84,187,513.92
production
Membership service 840,992,823.82 665,056,892.14
Total 1,223,382,815.57 1,095,959,210.88
Material contract liabilities aged more than one year:
In RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
Significant changes in the carrying value during the Reporting Period and reasons therefor:
In RMB
Item Changes Reason for changes
26. Employee benefits payable
(1) Details of employee benefits payable
In RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term benefits 1,018,804,563.91 1,662,551,293.03 1,549,404,332.02 1,131,951,524.92
II. Post-employment
benefits-defined benefit 478,800.10 44,223,376.30 43,780,003.77 922,172.63
plan
III. Termination benefits 510,226.39 15,031,762.77 15,217,424.98 324,564.18
Total 1,019,793,590.40 1,721,806,432.10 1,608,401,760.77 1,133,198,261.73
(2) Short-term benefits
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wages or salaries,
bonuses, allowances and 1,016,144,756.03 1,540,798,266.80 1,427,775,301.67 1,129,167,721.16
subsidies
2. Employee welfare
323,060.00 53,125,778.80 53,141,539.80 307,299.00
expenses
3. Social security
250,945.43 29,336,605.06 29,306,211.18 281,339.31
contributions
Incl.: Medical
233,096.54 24,628,570.39 24,611,918.67 249,748.26
insurance
Work-related
11,624.05 1,623,353.14 1,621,668.52 13,308.67
injuries insurance
Maternity
6,224.84 257,214.62 257,143.37 6,296.09
insurance
Other commercial
2,827,466.91 2,815,480.62 11,986.29
insurance
4. Housing provident
350,457.00 32,548,777.00 32,684,183.00 215,051.00
fund
5. Union running costs
and employee education 1,735,345.45 6,741,865.37 6,497,096.37 1,980,114.45
cost
Total 1,018,804,563.91 1,662,551,293.03 1,549,404,332.02 1,131,951,524.92
(3) Defined benefit plan
In RMB
137
Mango Excellent Media Co., Ltd. Annual Report 2023
Item Opening balance Increase Decrease Closing balance
1. Basic pensions 463,529.93 40,960,951.91 40,523,494.33 900,987.51
2. Unemployment
15,270.17 3,262,424.39 3,256,509.44 21,185.12
insurance
Total 478,800.10 44,223,376.30 43,780,003.77 922,172.63
Other information:
27. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 11,408,321.49 13,344,691.29
Enterprise income tax 8,206,297.94 61,255.01
Personal Income Tax 40,619,583.31 36,982,910.73
Urban maintenance and construction tax 198,770.35 421,370.61
Stamp duty 2,521,617.23 1,985,402.35
Education surcharges 141,978.81 327,072.20
Development fee for cultural undertakings 205,222,676.00 152,478,937.95
Other taxes 2,838,963.45 2,866,410.18
Total 271,158,208.58 208,468,050.32
Other information:
28. Non-current liabilities due within one years
In RMB
Item Closing balance Opening balance
Lease liabilities due within 1 year 63,380,220.77 52,927,194.87
Total 63,380,220.77 52,927,194.87
Other information:
29. Other current liabilities
In RMB
Item Closing balance Opening balance
Output tax to be transferred 55,645,321.21 81,629,189.75
Notes endorsed but not derecognized [note] 34,920,000.00
Others 26,507,026.70
Total 90,565,321.21 108,136,216.45
Changes in short-term bonds payable:
In RMB
Interest Closi
Amortization Repayment
Name of Coupon Term of Issue Opening Issue for accrued ng Default
Par value Issue date of premiums for the
bond rate bond amount balance the period based on balan or not
or discounts period
par value ce
Total
Other information:
[Note] Notes endorsed but not derecognized are banker’s acceptance bills of small-sized commercial banks that have been endorsed
but not derecognize at the end of the Reporting Period.
30. Lease liabilities
In RMB
Item Closing balance Opening balance
Housing and building rental payments 163,907,504.63 148,555,695.29
138
Mango Excellent Media Co., Ltd. Annual Report 2023
Unrecognized financing expenses -12,098,501.29 -10,211,590.57
Total 151,809,003.34 138,344,104.72
Other information:
31. Provisions
In RMB
Item Closing balance Opening balance Reason
Estimated compensation for
Pending litigation 3,156,100.00 9,038,875.00
pending litigation
Total 3,156,100.00 9,038,875.00
Other information, including important assumptions and estimation explanations related to significant estimated liabilities:
32. Deferred income
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government grants
Governmental grants 42,775,997.77 24,310,000.00 23,878,281.29 43,207,716.48 related to assets and
income
Total 42,775,997.77 24,310,000.00 23,878,281.29 43,207,716.48 --
Other information:
33. Share capital
In RMB
Increase or decrease (+,-)
Opening balance Capitalization of Closing balance
New shares Bonus shares Others Sub-total
capital reserve
Total shares 1,870,720,815.00 1,870,720,815.00
Other information:
34. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (Share
9,639,945,659.79 834,795,100.00 8,805,150,559.79
capital premium)
Other capital reserve 6,264,437.84 6,264,437.84
Total 9,646,210,097.63 834,795,100.00 8,811,414,997.63
Other information, including changes and reasons therefor:
The decrease in the current capital premium (equity premium) was caused by acquisition of 100% shares of Golden Eagle Cartoon
from the parent company Mango Media. See Note VII.54 and Note IX.1 for details.
35. Other comprehensive income
In RMB
Amount in the current period
Less: Amount Less: Amount
Amount included in included in Less: Attributable Attributable to
Opening Closing
Item before income other other Income to the parent minority
balance balance
tax for the comprehensive comprehensive tax company interests after
current period income for the income for the expenses after tax tax
prior periods prior periods
139
Mango Excellent Media Co., Ltd. Annual Report 2023
and transferred and transferred
to the profit or to the retained
loss for the earnings for
current period the current
period
II. Other comprehensive
income that will be 157,436.90 14,621.32 14,621.32 172,058.22
reclassified to profit or loss
Translation differences of
financial statements
157,436.90 14,621.32 14,621.32 172,058.22
denominated in foreign
currencies
Total of other
157,436.90 14,621.32 14,621.32 172,058.22
comprehensive income
Other information, including adjustment of the effective part of the cash flow hedge gains and losses transferred to initially
recognized amount of hedged items:
36. Surplus reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory capital reserves 126,108,937.21 53,513,078.05 179,622,015.26
Total 126,108,937.21 53,513,078.05 179,622,015.26
Descriptions of surplus reserve, including changes for the current period and reasons therefor: Current increase of statutory capital
reserves is accrued based on 10% of net profits of parent company.
37. Undistributed profit
In RMB
Item Amount in the current period Amount in the prior period
Undistributed profits at the end of the prior period
7,306,930,115.63 5,746,281,439.57
before adjustment
Aggregate adjustment to the opening balance of
undistributed profits (increase expressed with “+”, 64,564,009.79 345,788,313.03
and decrease expressed with “-”)
Beginning balance of undistributed profits after
7,371,494,125.42 6,092,069,752.60
adjustment
Add: Net profit attributable to owners of the parent
3,555,705,558.90 1,864,245,432.69
company for the period
Less: Appropriation to statutory surplus reserve 53,513,078.05 21,083,553.92
Dividends payable for ordinary shares 243,193,705.95 563,737,505.95
Closing balance of undistributed profits 10,630,492,900.32 7,371,494,125.42
Details of adjustments to the opening balance of undistributed profits:
1) Effect on the opening balance of undistributed profits due to retrospective adjustment pursuant to the Accounting Standards
for Business Enterprises and related new provisions: Nil.
2) Effect on the opening balance of undistributed profits due to changes in accounting policies: RMB-220,645.78.
3) Effect on the opening balance of undistributed profits due to the correction of material accounting errors: Nil.
4) Effect on the opening balance of undistributed profits due to changes in the scope of consolidation resulting from business
merger involving entities under common control: RMB64,784,655.57.
5) Effect on the opening balance of undistributed profits due to other adjustments: Nil.
38. Operating revenues and operating costs
In RMB
Amount in the current period Amount in the prior period
Item
Revenue Cost Revenue Cost
Primary business 14,593,731,803.65 9,764,976,782.77 13,960,815,498.38 9,194,378,666.53
Other business 34,284,498.19 38,030,112.17 15,958,536.54 13,701,456.54
Total 14,628,016,301.84 9,803,006,894.94 13,976,774,034.92 9,208,080,123.07
Whether the lower of the audited net profit before and after deduction of non-recurring gain or loss is negative?
140
Mango Excellent Media Co., Ltd. Annual Report 2023
□Yes No
Breakdown of operating revenues and operating costs:
In RMB
Segment 1 Segment 2 Total
Category of
Operating Operating Operating Operating
contract Operating revenue Operating cost Operating revenue Operating cost
revenue cost revenue cost
By segment 14,607,812,188.73 9,788,565,453.99 14,607,812,188.73 9,788,565,453.99
Incl.:
Mango TV
Internet video 10,614,030,327.62 6,229,223,213.61 10,614,030,327.62 6,229,223,213.61
business
New media
interactive
entertainment
content 1,149,941,038.24 855,899,278.24 1,149,941,038.24 855,899,278.24
production
and operation
Content e-
commerce 2,822,529,201.38 2,682,738,552.41 2,822,529,201.38 2,682,738,552.41
Others 21,311,621.49 20,704,409.73 21,311,621.49 20,704,409.73
By operating
region 14,607,812,188.73 9,788,565,453.99 14,607,812,188.73 9,788,565,453.99
Incl.:
Hunan 3,537,951,569.61 2,368,845,667.28 3,537,951,569.61 2,368,845,667.28
Others 11,069,860,619.12 7,419,719,786.71 11,069,860,619.12 7,419,719,786.71
By market or
customer
type
Incl.:
By contract
type
Incl.:
By transfer
time of goods 14,607,812,188.73 9,788,565,453.99 14,607,812,188.73 9,788,565,453.99
Incl.:
Revenue
recognized at
a point in 7,322,021,341.01 5,480,672,112.18 7,330,400,480.95 5,480,672,112.18
time
Revenue
recognized 7,285,790,847.72 4,307,893,341.81 6,635,020,319.10 4,307,893,341.81
over time
By term of
contract
Incl.:
By sales
channel
Incl.:
Total
Information related to performance obligations:
Type of
Amount that
Time for Nature of goods warranty
Whether the the Company is
satisfaction of Material terms to be provided by the
Item Company is a expected to
performance of payment transferred by Company and
primary obligor return to the
obligation the Company related
customer
obligation
Other information:
Information related to the transaction price allocated to the outstanding performance obligations:
The revenue corresponding to the performance obligations for which the contract has been signed but has not yet been performed or
fully performed at the end of the Reporting Period was RMB1,167,884,022.86, of which RMB[ ] is expected to be recognized as
revenue in [ ], RMB[ ] is expected to be recognized as revenue in [ ], and RMB[ ] is expected to be recognized as revenue in [ ].
Information related to variable consideration under the contract:
Material changes to contract or material adjustment to transaction price:
In RMB
Item Method of accounting treatment Effect on revenues
Other information:
141
Mango Excellent Media Co., Ltd. Annual Report 2023
39. Taxes and surcharges
In RMB
Item Amount in the current period Amount in the prior period
Consumption tax 4,609,149.68 182,749.05
Urban maintenance and construction tax 15,971,815.04 14,198,586.07
Education surcharges 11,426,041.49 10,195,202.13
Property tax 848,676.35 728,127.45
Land use rights 317,111.64 304,072.27
Vehicle and vessel tax 52,190.00 44,743.15
Stamp duty 4,172,011.31 1,613,045.10
Cultural program expenditure 62,712,654.64 63,689,854.06
Others 5,567.68 9,459.17
Total 100,115,217.83 90,965,838.45
Other information:
40. Administrative expenses
In RMB
Item Amount in the current period Amount in the prior period
Employee’s benefits and labor costs 430,604,885.05 464,190,051.90
Depreciation and amortization 60,923,666.46 60,547,830.40
Legal costs 10,709,601.29 9,512,505.95
Office and administrative service 71,238,413.34 69,184,998.74
Agency fees 17,522,886.67 14,401,232.02
Business entertainment expenses 2,661,030.35 1,936,702.25
Others 18,348,524.17 26,728,696.80
Total 612,009,007.33 646,502,018.06
Other information:
41. Selling expenses
In RMB
Item Amount in the current period Amount in the prior period
Employee’s benefits and labor costs 576,127,812.59 639,343,477.94
Depreciation and amortization 8,466,298.99 11,677,591.99
Advertising costs 1,096,031,531.92 1,114,422,163.05
Expenses for Internet access cooperation 34,925,253.55 35,562,482.84
Office and travel expenses 26,303,720.55 15,828,308.40
Program production costs 19,085,890.68 9,674,917.32
Channel sales and operations development
474,478,818.33 390,480,869.67
expenses
Others 24,645,947.36 27,834,517.77
Total 2,260,065,273.97 2,244,824,328.98
Other information:
42. Research and development expenses
In RMB
Item Amount in the current period Amount in the prior period
Employee’s benefits and labor costs 132,809,324.23 78,469,189.04
142
Mango Excellent Media Co., Ltd. Annual Report 2023
Depreciation and amortization 14,284,930.13 15,548,111.63
Technical service fees 112,770,214.15 140,783,980.32
Others 18,863,776.27 22,805,961.42
Total 278,728,244.78 257,607,242.41
Other information:
43. Financial expenses
In RMB
Item Amount in the current period Amount in the prior period
Loan interest expenses 1,937,719.63 2,022,222.95
Expenditure from interest of bills
14,480,442.10 8,626,569.06
discounted not derecognized
Less: Interest income 208,888,419.38 200,121,015.01
Service charge 43,051,724.38 33,125,167.59
Interest expenses from lease liabilities 6,650,512.63 9,493,105.50
Foreign exchange gains and losses -4,899,373.45 4,409,147.02
Total -147,667,394.09 -142,444,802.89
Other information:
44. Other income
In RMB
Source of other income Amount in the current period Amount in the prior period
Government grants related to assets 16,732,948.07 16,648,854.52
Government grants related to income 69,609,403.38 35,466,135.70
Refund of service fees of withholding
3,820,990.58 5,240,976.47
personal income tax
Additional VAT deduction 32,761,165.89 70,107,934.93
Total 122,924,507.92 127,463,901.62
45. Investment income
In RMB
Item Amount in the current period Amount in the prior period
Income from long-term equity investments under equity
-4,123,864.73 -2,576,746.69
method
Proceeds from debt restructuring 3,000,000.00 27,219,600.00
Interest expenses on derecognized discount notes -18,449,114.52 -10,956,907.95
Income from wealth management products 92,809,746.83 119,377,916.99
Total 73,236,767.58 133,063,862.35
Other information:
46. Impairment losses of credit
In RMB
Item Amount in the current period Amount in the prior period
Losses from impairment of notes receivable 23,151.77 -23,151.77
Bad debt losses of accounts receivable -66,160,439.05 -117,264,188.06
Bad debt losses of other receivables -1,399,168.29 -1,182,612.49
Total -67,536,455.57 -118,469,952.32
Other information:
143
Mango Excellent Media Co., Ltd. Annual Report 2023
47. Impairment losses of assets
In RMB
Item Amount in the current period Amount in the prior period
I. Loss from inventory depreciation and loss from
-16,104,442.05 -20,689,008.13
impairment of contract performance cost
II. Loss from impairment of long-term equity investment -17,181,905.95
XI. Impairment losses of contractual assets 3,485,179.56 -3,213,575.08
XII. Others -19,905,321.52 -8,659,735.00
Total -32,524,584.01 -49,744,224.16
Other information:
48. Income from disposal of assets
In RMB
Source of income from disposal of assets Amount in the current period Amount in the prior period
Income from disposal of long-term assets 1,171,623.19 891,438.70
49. Non-operating revenue
In RMB
Amount included in the non-
Item Amount in the current period Amount in the prior period recurring gain or loss for the
current period
Payment not to be made 2,956,600.70 5,290,663.40 2,956,600.70
Income from safeguarding legal
25,508,083.38 37,208,566.67 25,508,083.38
rights
Others 7,067,319.74 3,129,220.30 7,067,319.74
Total 35,532,003.82 45,628,450.37 35,532,003.82
Other information:
50. Non-operating expenses
In RMB
Amount in the Amount included in the non-recurring gain or
Item Amount in the prior period
current period loss for the current period
Outbound donations 447,013.55 8,291.60 447,013.55
Losses from damage and
51,994.54 84,224.80 51,994.54
retirement of non-current assets
Compensation expenditures 3,179,097.37 4,086,213.49 3,179,097.37
Others 327,778.83 311,651.85 327,778.83
Total 4,005,884.29 4,490,381.74 4,005,884.29
Other information:
51. Income tax expenses
(1) Table of income tax expenses
In RMB
Item Amount in the current period Amount in the prior period
Current income tax expenses 8,146,737.30 76,071.59
Deferred income tax expenses -1,628,916,523.97
Total -1,620,769,786.67 76,071.59
144
Mango Excellent Media Co., Ltd. Annual Report 2023
(2) Reconciliation of income tax expenses to the accounting profit
In RMB
Item Amount in the current period
Total profit 1,850,557,035.72
Income tax expense calculated based on statutory/applicable tax rate 462,639,258.93
Effect of different tax rates of subsidiaries operating in other jurisdictions -512,820,365.96
Effect of adjustment on income tax for the prior period 84,246.60
Effect of non-deductible cost, expense and loss 115,470.39
Effect of utilizing deductible loss not recognized for deferred tax assets for the prior period -1,780,002.87
Effect of deductible temporary difference or deductible loss not recognized for deferred tax
59,908,130.21
assets for the current period
Other -1,628,916,523.97
Income tax expense -1,620,769,786.67
Other information: Other deferred income tax expenses recognized as temporary differences due to the expiration of tax exemptions
for the Company.
52. Items of the cash flow statement
(1) Cash flows relating to operating activities
Other cash receipts relating to operating activities:
In RMB
Item Amount in the current period Amount in the prior period
Governmental grants 86,774,070.16 49,373,216.18
Interest income 208,888,917.13 200,121,015.01
Income from safeguarding legal rights 25,508,083.38 37,208,566.67
Payment for goods collected for others 57,918,097.18 134,507,004.72
Receivables and payables and others 15,018,872.71 26,765,188.10
Total 394,108.040.56 447,974,990.68
Descriptions of other cash receipts relating to operating activities:
Other cash payments relating to operating activities
In RMB
Item Amount in the current period Amount in the prior period
Payments of various expenses 1,794,393,196.61 1,640,256,969.08
Band service charges 43,052,222.13 33,125,167.59
Payment for goods made for others 57,918,097.18 134,507,004.72
Accounts current and others 4,471,305.46 4,396,926.89
Total 1,899,834,821.38 1,812,286,068.28
Descriptions of other cash payments relating to operating activities:
(2) Cash flows relating to investing activities
Other cash receipts relating to investing activities:
In RMB
Item Amount in the current period Amount in the prior period
Redemption of bank wealth management
7,121,000,000.00 14,099,290,618.76
products
Income from wealth management products 98,275,772.73 119,377,916.99
Total 7,219,275,772.73 14,218,668,535.75
Material cash receipts relating to investing activities:
In RMB
Item Amount in the current period Amount in the prior period
Descriptions of other cash receipts relating to investing activities:
Other cash payments relating to investing activities
145
Mango Excellent Media Co., Ltd. Annual Report 2023
In RMB
Item Amount in the current period Amount in the prior period
Purchase of wealth management products 5,478,000,000.00 13,371,990,000.00
Total 5,478,000,000.00 13,371,990,000.00
Material cash payments relating to investing activities:
In RMB
Item Amount in the current period Amount in the prior period
Descriptions of other cash payments relating to investing activities:
(3) Cash flows relating to financing activities
Other cash receipts relating to financing activities:
In RMB
Item Amount in the current period Amount in the prior period
Descriptions of other cash receipts relating to financing activities:
Other cash payments relating to financing activities
In RMB
Item Amount in the current period Amount in the prior period
Lease payment 82,238,041.16 67,026,458.20
Repayment of intergroup loans 64,000,000.00 29,693,346.30
Total 146,238,041.16 96,719,804.50
Descriptions of other cash payments relating to financing activities:
Repayment of intergroup loans involves the intergroup loans obtained by Golden Eagle Cartoon before it was merged into the Company,
which were repaid in full before it was merged into the Company.
Changes in liabilities arising from financing activities:
Applicable □N/A
In RMB
Increase in the current period Decrease in the current period
Closing
Item Opening balance Monetary Non-monetary Monetary Non-monetary
balance
change change change change
Short-term
1,057,932,476.80 679,622,361.64 296,562,773.00 1,407,210,739.84 33,781,325.60
borrowings
Lease
liabilities
(including
191,271,299.59 106,155,965.68 82,238,041.16 215,189,224.11
those due
within one
year)
Total 1,249,203,776.39 679,622,361.64 106,155,965.68 378,800,814.16 1,407,210,739.84 248,970,549.71
53. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
In RMB
Supplementary information Amount in the current period Amount in the prior period
1. Reconciliation of net profit to cash flow from operating
activities:
Net profit 3,471,326,822.39 1,805,506,310.07
Add: Provision for impairment losses of assets 100,061,039.58 168,214,176.48
Depreciation of fixed assets, depletion of oil and gas assets,
44,086,957.48 41,351,798.47
depreciation of bearer biological assets
Depreciation of right-of-use assets 83,840,720.26 65,495,312.38
Amortization of intangible assets 5,126,794,678.27 5,009,896,316.63
Amortization of long-term prepaid expenses 31,314,872.78 31,408,448.81
Losses on disposal of fixed assets, intangible assets and other
long-term assets (gains are indicated by “－”) -1,171,623.19 -891,438.70
146
Mango Excellent Media Co., Ltd. Annual Report 2023
Losses on retirement of fixed assets (gains are indicated by
“－”) 51,994.54 84,224.80
Income from changes in fair value (gains are indicated by “-”)
Financial expenses (gains are indicated by “－”) 18,169,300.91 24,551,044.53
Investment losses (gains are indicated by “－”) -73,236,767.58 -132,976,709.08
Decrease in deferred tax assets (increase is indicated by “－”) -1,628,783,436.05 -6,782.33
Increase in deferred tax liabilities (decrease is indicated by
“－”) -133,087.92 227,428.11
Decrease in inventories (increase is indicated by “－”) -124,721,268.22 80,414,477.47
Decrease in receivables from operating activities (increase is
indicated by “－”) -258,552,482.21 -1,257,620,367.60
Increase in payables from operating activities (decrease is
indicated by “－”) 562,070,967.16 75,204,594.63
Others -6,267,345,431.49 -5,289,055,135.23
Net cash flows from operating activities 1,083,773,256.71 621,803,699.44
2. Significant investing and financing activities that do not involve
cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds due within 1 year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 11,867,316,344.43 10,345,319,073.78
Less: opening balance of cash 10,345,319,073.78 7,534,308,169.53
Add: Closing balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 1,521,997,270.65 2,811,010,904.25
(2) Net cash paid for acquisition of subsidiaries in the current period
In RMB
Amount
Cash or cash equivalents paid in connection with business
834,795,100.00
mergers in the current period
Incl.:
Golden Eagle Cartoon 834,795,100.00
Incl.:
Incl.:
Net cash paid for acquisition of subsidiaries 834,795,100.00
Other information:
(3) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 11,867,316,344.43 10,345,319,073.78
Incl.: Cash on hand 34,083.85 88,009.61
Bank deposit that can be paid at any
11,843,692,572.77 10,322,905,867.30
time
Other monetary capital that can be paid
23,589,687.81 22,325,196.87
at any time
III. Closing balance of cash and cash
11,867,316,344.43 10,345,319,073.78
equivalents
Incl.: Restricted cash and cash equivalents
held by the parent company or other 1,490,065,232.16 2,105,457,389.75
subsidiaries in the Group
147
Mango Excellent Media Co., Ltd. Annual Report 2023
(4) Amounts whose use is restricted but which are still presented as cash and cash equivalents
In RMB
Reason for presentation as
Item Amount in the current period Amount in the prior period
cash and cash equivalents
Amount held in the account of Be subject to limited usage but
1,490,065,232.16 2,105,457,389.75
offering proceeds can be spent at any time
Total 1,490,065,232.16 2,105,457,389.75
54. Notes to the statement of changes in owners’ equity
Titles of items under “others” whose balance at the end of the prior year was adjusted and amount of adjustment:
On July 25, 2023, at the 17th meeting of the 4th Board of Directors and the 15th meeting of the 4th Board of Directors, the Proposal
Regarding Acquisition of 100% Shares of Hunan Golden Eagle Cartoon Media Co., Ltd. by Cash and Related-party Transaction was
considered and adopted, which provides that, pursuant to the Asset Valuation Report on the Total Interests Held by the Shareholders
of Hunan Golden Eagle Cartoon Media Co., Ltd. Involved in the Proposed Transfer by Mango Media Co., Ltd. of 100% Shares of
Hunan Golden Eagle Cartoon Media Co., Ltd. (Vacation International Ping Bao Zi (2023) No. 1243) issued by Vacation (Beijing)
International Asset Valuation Co., Ltd., as of December 31, 2022, the reference date for the valuation, the value of the total interests
held by the shareholders of Golden Eagle Cartoon was RMB834,795,100; based on such result of valuation, the parties to the transaction
agreed that the transaction price for 100% shares of Golden Eagle Cartoon was RMB834,795,100; the Company would pay
RMB834,795,100, using its self-owned funds, to acquire 100% shares of Golden Eagle Cartoon. In October 2023, Golden Eagle
Cartoon completed the relevant alteration filing procedures with the administration for industry and commerce, the Company acquired
100% shares of Golden Eagle Cartoon, and Golden Eagle Cartoon was included in the scope of consolidation of the Company.
Both the Company and Golden Eagle Cartoon are controlled by Mango Media before and after this business merger, and such
control is not temporary, so the acquisition by the Company of Golden Eagle Cartoon constitute a business merger involving entities
not under common control. Pursuant to the Accounting Standards for Business Enterprises No. 2 “Long-term Equity Investment” and
the Accounting Standards for Business Enterprises No. 33 “Consolidated Financial Statements”, the Company needs to retroactively
adjust the balance of related financial statement items at January 1, 2023.
Retroactive adjustment to opening balance:
Opening balance before Opening balance after
Item Other adjustment
adjustment adjustment
Capital reserve 9,546,797,532.04 99,412,565.59 9,646,210,097.63
Undistributed profit 7,306,930,115.63 64,784,655.57 7,371,714,771.20
Adjustment to the opening balance of capital reserve was primarily due to recognition of the Company’s share in the paid-in
capital and capital reserve of Golden Eagle Cartoon, and adjustment to the opening balance of undistributed profit was primarily due
to recognition of the Company’s share in the distributable profit of Golden Eagle Cartoon.
55. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
In RMB
Closing balance of foreign Translated balance in RMB at
Item Exchange rate
currency the end of the period
Cash and bank balances
Incl.: USD 800,823.15 7.0827 5,671,990.12
EUR
HKD 2,320.83 0.9062 2,103.18
Accounts receivable
Incl.: USD 1,657,521.19 7.0827 11,739,725.33
EUR
HKD
Long-term borrowings
Incl.: USD
EUR
HKD
Accounts payable
148
Mango Excellent Media Co., Ltd. Annual Report 2023
Incl.: USD 7,597,907.25 7.0827 53,813,697.68
Other information:
(2) Descriptions of overseas operating entities, including disclosure of the main overseas business locations, functional currency
and the basis for selection of important overseas operating entities, and the reasons for changes in functional currency (if any)
□Applicable N/A
56. Leases
(1) The Company as lessee
Applicable □N/A
Variable lease payments not included in lease liabilities:
□Applicable N/A
Lease expenses under short-term leases and leases of low-value assets using the simplified approach:
□Applicable N/A
Sale and leaseback transactions:
None.
(2) The Company as lessor
The Company as lessor under operating leases
Applicable □N/A
In RMB
Incl.: Income related to variable lease
Item Rental income
payments not included in lease receipts
Buildings 20,204,113.11
Total 20,204,113.11
The Company as lessor under finance leases
□Applicable N/A
Annual undiscounted lease receipts in the following five years:
Applicable □N/A
In RMB
Annual undiscounted lease receipts
Item
Closing balance Opening balance
Year 1 9,654,633.78 10,623,126.18
Year 2 7,959,920.12 11,238,554.40
Year 3 5,760,657.31 9,883,531.00
Year 4 3,000,125.74 8,326,777.08
Year 5 2,161,091.60 6,061,978.71
Total undiscounted lease receipts after five years 68,807.34 5,370,943.39
Reconciliation of undiscounted lease receipts to net investment in leases:
(3) Gain or loss on sales under finance leases as producer or distributor
□Applicable N/A
VIII. Research and Development Expenses
In RMB
Item Amount in the current period Amount in the prior period
Employee’s benefits and labor costs 239,717,202.20 157,497,801.91
Depreciation and amortization 25,265,966.87 27,896,456.26
Technical service fees 127,840,867.11 153,660,894.75
Others 25,920,119.06 25,077,790.61
Total 418,744,155.24 364,132,943.53
149
Mango Excellent Media Co., Ltd. Annual Report 2023
Incl.: Charging research and development
278,728,244.78 257,607,242.41
expenses
Capitalized research and
140,015,910.46 106,525,701.12
development expenses
1. Research and development projects qualified for capitalization
In RMB
Increase in the current period Decrease in the current period
Internal Recognized Transferred
Opening Closing
Project research and as to current
balance Others balance
development intangible profit or
expenses assets loss
Smart
audio-
98,662,331.53 125,920,688.48 224,583,020.01
visual
project
Self-
developed
3,170,414.70 14,095,221.98 17,265,636.68
game
project
Total 101,832,746.23 140,015,910.46 241,848,656.69
Important capitalized research and development projects:
Progress of Expected ways to Basis for
Expected time of Beginning time of
Project research and produce economic beginning
completion capitalization
development benefits capitalization
The project aims to
strengthen the
basic service
ability, intelligent
content production
The smart audio- management,
visual project has 6 refined audio-
second-level sub- visual media
projects. At operations, cutting-
present, all projects edge audio-visual
have proceeded in experience
Approval of the
an orderly manner, exploration,
project by the
and the research innovative business
Smart audio-visual meeting of
and development December 1, 2025 application sector, March 25, 2022
project technical
of 20 out of 33 sub- “4K+5G” high-
committee of
modules have been definition smart
Happy Sunshine.
completed, production, etc., to
marking more than build China’s
half of the research leading smart
and development audio-visual media
tasks has been service platform, so
completed. as to improve the
core
competitiveness
and brand
awareness of the
Company.
Provision for impairment of research and development expenses:
In RMB
Increase in the Decrease in the Impairment
Project Opening balance Closing balance
current period current period assessment
150
Mango Excellent Media Co., Ltd. Annual Report 2023
IX. Changes in Scope of Consolidation
1. Business merger involving entities under common control
(1) Business merger involving entities under common control effected in the current period
In RMB
Net profit of
Revenues of
Basis for the acquiree
the acquiree
constituting from the
from the Revenues of
business Basis for beginning of Net profit of the
Percentage of beginning of the acquiree in
merger determining the period in acquiree in the
Acquiree shares Merger date the period in the
involving the merger which the comparative
acquired which the comparative
entities under date merger period
merger period
common occurred till
occurred till
control the merger
the merger date
date
The Company
The has paid
Company 100% of the
acquired cash
Hunan
100% shares consideration
Golden Eagle
of Golden October 20, and there isn’t
Cartoon 100.00% 193,926,532.98 32,481,963.81 273,141,672.07 39,292,296.69
Eagle 2023 any
Media Co.,
Cartoon held substantial
Ltd.
by its parent barrier to the
company change in
Mango Media share
ownership.
Other information:
(2) Acquisition cost
In RMB
Acquisition cost Hunan Golden Eagle Cartoon Media Co., Ltd.
-Cash 834,795,100.00
-Carrying value of non-cash assets
-Carrying value of liabilities issued or assumed
-Carrying value of equity securities issued
-Contingent consideration
Contingent consideration and changes therein:
Other information:
(3) Carrying value of the assets and liabilities of the acquiree at the merger date
In RMB
Hunan Golden Eagle Cartoon Media Co., Ltd.
Merger date End of prior period
Assets:
Cash and bank balances 334,428,751.74 682,992,725.80
Accounts receivable 25,835,411.85 18,813,428.92
151
Mango Excellent Media Co., Ltd. Annual Report 2023
Inventories 21,019,575.06 8,687,024.50
Fixed assets 6,641,330.65 8,439,709.59
Intangible assets 3,993,602.40 2,932,094.35
Other current assets 2,703,695.83
Right-of-use assets 7,012,756.00 8,606,564.20
Long-term deferred expenses 16,935.60 266,324.17
Other non-current assets 225,513.43 432,816.62
Liabilities:
Borrowings
Accounts payable 191,086,482.69 558,619,564.87
Non-current liabilities due within one year 999,638.17 1,743,486.89
Other non-current liabilities 1,579,534.04 2,485,074.20
Lease liabilities 6,829,036.86 6,829,036.86
Deferred income 2,000,000.00
Net assets 196,679,184.97 164,197,221.16
Less: Minority interest
Net assets acquired 196,679,184.97 164,197,221.16
Provisions of the acquiree assumed in the business merger:
Other information:
2. Changes in the scope of merger for other reasons
Descriptions of changes in the scope of merger for other reasons (such as establishment of a new subsidiary and liquidation of a
subsidiary, etc.) and the relevant information:
Reduction in the scope of merger
In RMB
Net profit from the
Method of disposal Net assets at the beginning of the
Company name Time of disposal of shares
of shares disposal date current period till
the disposal date
Beijing Happy Mango Culture
Deregistered June 27, 2023 745,341.66
Media Co., Ltd.
X. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of enterprise group
In RMB
Name of Main business Registered Shareholding ratio Method of
Registered capital Business nature
subsidiary place address Direct Indirect acquisition
Shanghai
Happigo
Enterprise 3,000,000.00 Shanghai Shanghai Commerce 100.00% Establishment
Development Co.,
Ltd.
Shanghai
Happivision
Advertising 5,000,000.00 Shanghai Shanghai Commerce 100.00% Establishment
Communication
Co., Ltd.
Doug Cloud
Business (Hunan) 10,000,000.00 Changsha Changsha Commerce 100.00% Establishment
Trade Limited
152
Mango Excellent Media Co., Ltd. Annual Report 2023
Liability
Company
Mango Life
(Hunan) E-
commerce 70,000,000.00 Changsha Changsha Commerce 100.00% Establishment
Limited Liability
Company
Happigo (Hunan) Business merger
Supply Chain involving entities
60,000,000.00 Changsha Changsha Storage 100.00%
Management Co., not under
Ltd. common control
Shanghai Meimi
5,000,000.00 Shanghai Shanghai Commerce 100.00% Establishment
Trade Co., Ltd.
Dameiren Global
Trading Co., 1,612,970.00 Shanghai Hong Kong Commerce 100.00% Establishment
Limited
Hunan Mango
Auto Automobile 100,000,000.00 Changsha Changsha Commerce 51.00% Establishment
Sales Co., Ltd.
Happigo Co., Ltd. 401,000,000.00 Changsha Changsha Commerce 100.00% Establishment
Hunan Happy
Business merger
Sunshine
involving entities
Interactive 242,470,013.00 Changsha Changsha Video 100.00%
under common
Entertainment
control
Media Co., Ltd.
Business merger
Mango
involving entities
Entertainment 48,306,424.00 Changsha Changsha Film & Television 100.00%
under common
Co., Ltd
control
Business merger
Mango Studios involving entities
80,000,000.00 Changsha Changsha Film & Television 100.00%
Co., Ltd. under common
control
Shanghai Business merger
Mangofun involving entities
72,968,014.00 Shanghai Shanghai Game 100.00%
Technology Co., under common
Ltd. control
Business merger
Shanghai EE- involving entities
90,000,000.00 Shanghai Shanghai Film & Television 100.00%
Media Co., Ltd. under common
control
Zhejiang
Business merger
Dongyang Tianyu
involving entities
Film and 10,000,000.00 Zhejiang Zhejiang Film & Television 100.00%
under common
Television
control
Culture Co. Ltd.
Hunan Tianyu
Business merger
Film and
involving entities
Television 3,000,000.00 Changsha Changsha Film & Television 100.00%
under common
Production Co.
control
Ltd.
Business merger
Beijing E.E. involving entities
5,000,000.00 Beijing Beijing Music 100.00%
Media Co., Ltd. under common
control
Hainan E.E.
30,000,000.00 Hainan Hainan Culture media 100.00% Establishment
Media Co., Ltd.
Business merger
Horgos Happy
involving entities
Sunshine Media 10,000,000.00 Horgos Horgos Culture media 100.00%
under common
Co., Ltd.
control
Hunan Happy Business merger
Mangofun involving entities
10,000,000.00 Changsha Changsha Game 100.00%
Technology Co., under common
Ltd. control
Shanghai Mango 10,000,000.00 Shanghai Shanghai Game 100.00% Establishment
153
Mango Excellent Media Co., Ltd. Annual Report 2023
Universe Culture
and Entertainment
Co., Ltd.
Happy Sunshine
Xingmang
Interactive 50,000,000.00 Haikou Haikou Commerce 100.00% Establishment
Entertainment
Media Co., Ltd.
Happy Sunshine
Hongmang
Education 50,000,000.00 Changsha Changsha Commerce 100.00% Establishment
Technology Co.,
Ltd.
Xiaomang E-
Commerce Co., 75,000,000.00 Changsha Changsha Commerce 66.67% Establishment
Ltd.
Mgtv.com (Hong
Kong) Media 10,000,000.00 Hong Kong Hong Kong Commerce 100.00% Establishment
Company Limited
Shenzhen
Business merger
Zhonghe Boao
involving entities
Technology 5,000,000.00 Changsha Shenzhen Game 100.00%
not under
Development Co.,
common control
Ltd.
Hunan Immersion
Technology Co., 10,000,000.00 Changsha Changsha Advertising 100.00% Establishment
Ltd.
Changsha
Xingmang Artist
Culture 100,000.00 Changsha Changsha Commerce 20.00% Establishment
Communications
Partnership (L.P.)
Changsha
Xingzhimang
Entertainment 100,000.00 Changsha Changsha Commerce 20.80% Establishment
Media Co., Ltd.
Changsha
Xingmang
Interactive
Entertainment
10,000,000.00 Changsha Changsha Commerce 99.21% Establishment
Media Partnership
(Limited
Partnership)
Business merger
Hunan Golden
Production of involving entities
Eagle Cartoon 59,693,346.30 Changsha Changsha 100.00%
radio programs not under
Media Co., Ltd.
common control
Hunan Maiji Park Business merger
Cultural involving entities
10,000,000.00 Changsha Changsha Commerce 100.00%
Development Co., not under
Ltd. common control
In RMB
Descriptions of the difference between the shareholding ratio and the proportion of voting rights in a subsidiary:
Basis for holding half of the voting rights or below but still controlling the investee, and holding over half of the voting right but
having no control over the investee:
Basis for controls over significant structured entities included in consolidation scope:
Basis for determining the Company as the agent or the principal:
Other information:
(2) Significant non-wholly owned subsidiaries
In RMB
Shareholding ratio by Profit or loss attributable Dividends declared for Closing balance of
Name of subsidiary
minority shareholders to minority interests for distribution to minority minority interests
154
Mango Excellent Media Co., Ltd. Annual Report 2023
the current period shareholders for the
current period
Xiaomang E-commerce
33.33% -83,725,886.84 -151,313,846.25
Co., Ltd.
Descriptions of the difference between the shareholding ratio of minority shareholders and their proportion of voting rights in a
subsidiary:
Other information:
(3) Key financial information of significant non-wholly owned subsidiaries
In RMB
Closing balance Opening balance
Name of Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
subsidiary current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Xiaomang
E- 96,307,0 11,507,3 107,814, 556,404, 5,351,42 561,755, 308,110, 926,595. 309,037, 511,800, 511,800,989.6
commerce 06.58 35.55 342.13 454.52 6.35 880.87 516.20 24 111.44 989.65 5
Co., Ltd.
In RMB
Amount in the current period Amount in the prior period
Name of Total Cash flows Total Cash flows
subsidiary Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Xiaomang - - - - - -
E- 1,020,970,5 680,133,76
251,177,66 251,177,66 219,609,80 245,678,03 245,678,03 200,830,56
commerce 36.13 9.80
Co., Ltd. 0.53 0.53 5.36 3.21 3.21 0.22
Other information:
XI. Government Grants
1. Government grants recognized at the amount receivable at the end of the Reporting Period
□Applicable N/A
Reason of failure to receive expected government grants at expected time:
□Applicable N/A
2. Liabilities related to government grants
Applicable □N/A
In RMB
Amount of
non-
Additional Amount
operating Other
grants transferred to
Account Opening revenue changes in Closing Related to
received in other income
title balance recognized the current balance assets/income
the current in the current
in the period
period period
current
period
Deferred Related to
33,675,664.51 21,800,000.00 16,732,948.07 38,742,716.44
income assets
Deferred Related to
9,100,333.26 2,510,000.00 7,145,333.22 4,465,000.04
income income
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Mango Excellent Media Co., Ltd. Annual Report 2023
3. Government grants recognized in profit or loss
Applicable □N/A
In RMB
Account title Amount in the current period Amount in the prior period
Government grants recognized in other
86,342,351.45 52,114,990.22
income
Other information:
XII. Risks Related to Financial Instruments
1. Risks arising from financial instruments
The Company’s risk management objectives are to achieve a proper balance between risks and yield, minimize the adverse impacts
of risks on the Company’s operation performance, and maximize the benefits of the shareholders and other stakeholders. Based on
these risk management objectives, the Company’s basic risk management strategy is to identify and analyze its exposure to various
risks, establish an appropriate maximum tolerance to risk, implement risk management, and monitor regularly and effectively these
exposures to ensure the risks are monitored at a certain level.
The Company is exposed to various risks associated with financial instruments in its daily routines, primarily including credit risk,
liquidity risk and market risk. The management has reviewed and approved policies to manage these risks, summarized as below.
(I) Credit risk
Credit risk refers to the risk that a party of the financial instrument will default on its obligations resulting in financial loss to the
counterparty.
1. Management of credit risk
(1) Evaluation of credit
The Company assesses at each balance sheet date whether the credit risk of the underlying financial instruments has increased
significantly since initial recognition. In determining whether the credit risk has increased significantly since initial recognition, the
Company considers reasonable and supportable information that is available without undue cost or effort, including quantitative and
qualitative analysis based on historical data, ranking of external credit risks and forward-looking information. The Company compares
the risk of a default occurring on a financial instrument as at the balance sheet date with the risk of a default occurring on the financial
instrument as at the date of initial recognition based on individual financial instrument or a group of financial instruments with similar
credit risk characteristic, to determine the change of the risk of a default occurring on a financial instrument over the expected life.
The Company considers the credit risk of financial instruments has increased significantly when one or more of the following
quantitative and qualitative criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of default over the remaining
life of the financial instruments as of the balance sheet date when comparing with that at initial recognition of the financial instruments;
2) The qualitative criteria include, inter alia, adverse material changes in business or financial conditions that are expected to cause
a significant decrease in the debtor’s ability to meet its debt obligations, and an actual or expected significant adverse change in the
technological, market, economic, or legal environment of the debtor that results in a significant decrease in the debtor’s ability to meet
its debt obligations;
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditions stated as below, and the
criteria of defining defaulted asset is consistent with the that of defining credit-impaired asset:
1) significant financial difficulty of the debtor;
2) a breach of contract terms with binding force by the debtor;
3) it is becoming probable that the borrower will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, has granted to the
debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit loss (“ECL”)
Key parameters to measure ECL include the probability of default, loss given default and the exposure at default. The Company
established models of the probability of default, loss given default and the exposure at default on the basis of qualitative analysis on
historical statistical data (such as counterparty ranking, guarantee methods, collateral category, and repayment way) and forward-
looking information.
3. Details of reconciliation of the opening balance and the closing balance of provision for impairment of financial instruments
can be referred to in Note V(I)4, Note V(I)7 and Note V(I)9 to the financial statements hereof.
4. Credit risk exposure and credit risk concentration
The Company's credit risk is primarily from cash and bank balances and receivables. In order to control the risks associated with
aforementioned items, the Company has taken the following measures.
(1) Cash and bank balances
The credit risk of the Company is limited because the Company has deposited bank deposits and other monetary capital in banks
with high credit ratings.
(2) Receivables
The Company continually evaluates the creditworthiness of its customers with deals on credit, and selects to deal with approved
156
Mango Excellent Media Co., Ltd. Annual Report 2023
and creditworthy customers subject to the results of the credit assessment with monitoring the balance of its receivables, so as to ensure
that the Company is not exposed to significant risk of bad debt.
No collateral is required since the Company only deals with third parties that are approved and creditworthy. The concentrated
credit risks are managed by customers. As of December 31, 2023, the Company is exposed to certain concentration of credit risks, as
the Company’s accounts receivable from top 5 customers have accounted for 42.71% of the total balance of accounts receivable and
contract assets (December 31, 2022: 40.24%). The Company held no collateral or other credit ranking measures for the balance of
accounts receivable.
The maximum exposure to the Company is the carrying value of each financial asset in the balance sheet.
(II) Liquidity risk
Liquidity risk refer to the risk that the Company is in shortage of funds in performing obligations that are settled by delivering
cash or another financial asset.
In order to control this risk, the Company balances the continuity and flexibility of financing by using various financing measures
such as notes settlement and bank loans comprehensively and adopting both long-term and short-term financing methods to optimize
the financing structure. The Company has received credit facilities from a number of commercial banks to satisfy its working capital
requirements and capital expenditures.
Financial liabilities classified by remaining maturity
Closing balance
Item
Carrying value Undiscounted contract amount Within 1 year 1-3 years Over 3 years
Short-term borrowings 33,781,325.60 34,406,880.84 34,406,880.84
Notes payable 1,714,493,274.32 1,714,493,274.32 1,714,493,274.32
Accounts payable 5,211,653,685.68 5,211,653,685.68 5,211,653,685.68
Other payables 118,868,606.40 118,868,606.40 118,868,606.40
Other current liabilities 34,920,000.00 34,920,000.00 34,920,000.00
Lease liabilities
(including those due 215,189,224.11 236,266,339.88 71,301,647.54 120,460,350.15 44,504,342.19
within one year)
Sub-total 7,328,906,116.11 7,350,608,787.12 7,185,644,094.78 120,460,350.15 44,504,342.19
(Continued)
Balance at the end of last year
Item Undiscounted
Carrying value Within 1 year 1-3 years Over 3 years
contract amount
Short-term borrowings 1,057,932,476.80 1,058,796,992.31 1,058,796,992.31
Notes payable 1,641,001,844.25 1,641,001,844.25 1,641,001,844.25
Accounts payable 4,929,885,871.44 4,929,885,871.44 4,929,885,871.44
Other payables 508,775,724.99 508,775,724.99 508,775,724.99
Lease liabilities
(including those due 191,271,299.59 212,301,884.04 61,503,064.82 82,280,864.66 68,517,954.56
within one year)
Sub-total 8,328,867,217.07 8,350,762,317.03 8,199,963,497.81 82,280,864.66 68,517,954.56
(III) Market risk
Market risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk mainly includes interest rate risk and currency risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Since the Company’s borrowings are at fixed interest rates, fluctuations in interest rates of borrowings will not
have a material impact on the Company’s total profits or shareholders’ equity.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. Since the Company mainly operates in Mainland China with its principal activities denominated in RMB, its
exposure to the currency risk due to changes in market is not material.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies can be referred to in Note V(V)2
to the financial statements hereof.
157
Mango Excellent Media Co., Ltd. Annual Report 2023
XIII. Disclosure of Fair Value
1. Closing balance of the fair value of assets and liabilities measured at fair value
In RMB
Closing balance of fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value
-- -- -- --
measurement
(I) Held-for-trading
1,052,000,000.00 1,052,000,000.00
financial assets
1. Financial assets at fair
value through profit or 1,052,000,000.00 1,052,000,000.00
loss
(3) Derivative financial
1,052,000,000.00 1,052,000,000.00
assets
(II) Accounts receivable
698,394,858.57 698,394,858.57
financing
Total liabilities
continuously measured at 1,052,000,000.00 698,394,858.57 1,750,394,858.57
fair value
II. Non-continuous fair
-- -- -- --
value measurement
2. Valuation techniques and qualitative and quantitative information of key parameters adopted for
continuous and non-continuous level 2 fair value measurement items
With respect to held-for-trading financial assets with similar products quotation in an active market, the fair value of them shall
be determined by the quotation of such similar products in the active market.
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for
continuous and non-continuous level 3 fair value measurement items
The Company’s receivables financing refers to the banker’s acceptance bills accepted by commercial banks with higher credit rating,
without quotation in the active market. The cost thereof represents the best estimate of fair value.
XIV. Related Parties and Related-party Transactions
1. Parent company of the Company
Proportion of the
Proportion of the
Company’s
Name of the parent Company’s voting
Registered address Business nature Registered capital ownership interest
company right held by the
held by the parent
parent company(%)
company (%)
Planning, production
and operation of
radio and television
programs; asset
Mango Media Co., management and
PRC 2,050,000,000.00 56.09% 56.09%
Ltd. investment subject to
laws and regulations;
advertising planning,
production and
operation;
Descriptions of the Company’s parent company
Mango Media Co., Ltd., which holds 56.09% of the shares in the Company, was established on July 10, 2007 with a registered
capital of RMB2,050,000,000 and registered address and principal place of business in Golden Eagle Studio Culture City in Kaifu
158
Mango Excellent Media Co., Ltd. Annual Report 2023
District, Changsha City. GBS holds 100% shares in Mango Media Co., Ltd. Mango Media Co., Ltd. is mainly engaged in planning,
production and operation of radio and television programs; investment in culture, sports, entertainment, media, science and technology,
Internet and other industries with self-owned funds (not allowed to engage in activities under national financial supervision and
financial credit businesses such as deposit absorption, fund raising and collection, entrusted loan, bill issuance, loan issuance, etc.);
advertising planning, production and operation; and multimedia technology development and management.
The ultimate controller of the Company is Hunan State-owned Cultural Assets Supervision and Administration Commission.
Other information:
2. Subsidiaries of the Company
For details of the subsidiaries of the Company, see the descriptions in the accompanying Note X.
3. Associates and joint ventures of the Company
For details of the significant joint ventures or associates of the Company, see the descriptions in the accompanying Note X.
The details of other joint ventures or associates having related-party transactions and balances with the Company in the current
period or prior periods are presented as follows:
Name of joint venture or associate Relationship with the Company
Shanghai Mamma Mia Interactive Entertainment Technology
Associates
Co., Ltd.
Tianjin Sunshine Meichuang Technology Co., Ltd. Associates
Other information:
4. Other related parties of the Company
Name of other related-party Relationship between other related-party and the Company
Hunan EE Advertising Co., Ltd. Controlled by the same actual controller
Yunhong Communication Technology (Guangzhou) Co., Ltd.1 Controlled by the same actual controller
GBS2 Controlled by the same actual controller
Subsidiaries of GBS3 Controlled by the same actual controller
Hunan Broadcasting System Controlled by the same actual controller
Subsidiaries of Hunan Broadcasting System4 Controlled by the same actual controller
Subsidiaries of HTBI (excluding Yunhong)5 Controlled by the same actual controller
Subsidiaries of Mango Media6 Controlled by the same actual controller
Xiaoxiang Film Group7 Controlled by the same actual controller
MIGU Culture Technology Co., Ltd.8 Company materially affected by the key officers
iFlyTek Co., Ltd. Company materially affected by the key officers
Note:
1. Yunhong Communication Technology (Guangzhou) Co., Ltd. comprises Shanghai Yunhong Advertising Co., Ltd. and
Guangzhou Yunhong Jiaze Advertising Co., Ltd.
2. GBS comprises Hunan Radio, Film and Television Group Satellite TV Channel Branch.
3. The subsidiaries of GBS include Hunan Fengmang Media Co., Ltd., Hunan Public Media Co., Ltd., Hunan Economic TV
Malanshan Media Co., Ltd., Hunan Malanshanshang Media Co., Ltd., Golden Light Culture Co., Ltd., Hunan Golden Bee Audio &
Visual Publishing House Co., Ltd., Changsha Mango Cinema Student Branch Co., Ltd., Hunan TV Drama Media Co., Ltd., Hunan
Broadcasting and Television Logistics Management Service Co., Ltd., Hunan Xiangguang Property Management Co., Ltd., Hunan
Broadcasting International Media Co., Ltd., Hunan International Exhibition Center Co., Ltd., Hunan International Convention and
Exhibition Management Center Co., Ltd., Letian Entertainment (Hunan) Co., Ltd., Hunan Happy Avant Garde Media Co., Ltd., Hunan
Happy Avant Garde Tea Culture Media Co., Ltd., Hunan Happy Fishing Development Co., Ltd., Shenzhen Jiuzhitianxia Technology
Co., Ltd., Hunan Pingan Fairy Media Co., Ltd., THBI, Hunan Radio Media Co., Ltd., Hunan Broadcasting Media Co., Ltd., Hunan
Golden Eagle International Exhibition Co., Ltd., Hunan Golden Eagle Documentary Media Co., Ltd., Hunan Golden Eagle Sound
Media Co., Ltd., Hunan Economic TV Media Co., Ltd., Hunan Letian Shanshuiwan Studio Co., Ltd., Hunan Mango Tingjian
Technology Co., Ltd., Hunan Film Release and Showing Center Co., Ltd., Hunan Shijie Golden Eagle Media Co., Ltd., Hunan Xiangshi
Advertising Golden Co., Ltd., and Shanghai Happy Mango Music & Cultural Media Co., Ltd., Hunan Broadcasting and Television
Logistics Management Service Co., Ltd., and Hunan Xiangshi TV Program Center Co., Ltd.
4. The subsidiaries of Hunan Broadcasting System include all channels of Hunan Broadcasting System (excluding satellite TV
channels), Hunan Broadcasting System Radio Media Center, Hunan Broadcasting System Logistics Center, Shanghai Xiangmanguo
Cultural Investment Co., Ltd.
5. The subsidiaries of HTBI (excluding Yunhong) include Hunan Saint Tropez Investment Co., Ltd., Shanghai Jiuyou Network
Technology Co., Ltd., Changsha Colorful World Co., Ltd., Hunan Mango Travel Investment Co. Ltd. and Huafengda Cable Network
Holding Co., Ltd.
6. Mango Media and its subsidiaries comprise Mango Media, Hunan Mango Vision Technology Co., Ltd., Hunan Happy Money
Microfinance Co., Ltd., Hunan Pingan Little Fairy Cultural Development Co., Ltd., and Hunan Innovative Entertainment Media Co.,
159
Mango Excellent Media Co., Ltd. Annual Report 2023
Ltd.
7. Xiaoxiang Film Group comprises Hunan Dangran Film Co., Ltd., Hunan Xiaoying Interactive Entertainment Media Co., Ltd.,
Hunan Xiaoying Cultural Industry Investment Co., Ltd., Anren Xiaoxiang International Studio Co., Ltd., Dong’an Xiaoxiang
International Studio Co., Ltd., Hengyang Xiaoxiang International Studio Co., Ltd., Hunan Xiaoxiang Jinqiu International Studio Co.,
Ltd., Hunan Xiaoxiang Xinsheng International Studio Co., Ltd., Hunan Xiaoxiang Studio Investment Management Co., Ltd., Hunan
Xiaoxiang Yongzhou International Studio Co., Ltd., Jishou Xiaoxiang Studio Management Co., Ltd., Jinshi Xiaoxiang International
Studio Co., Ltd., Nanchang Xiaoxiang Studio Co., Ltd., Pingxiang Xiaoxiang Studio Co., Ltd., Xiamen Xiaoxiang Youth Studio Co.,
Ltd., Xiangtan Xiaoxiang International Studio Co., Ltd., Yichang Xiaoxiang Studio Co., Ltd., Yingtan Xiaoxiang Studio Co., Ltd.,
Yueyang Xiaoxiang Studio Co., Ltd., Tianxin District Xiaoxiang International Studio Co., Ltd. of Changsha, and Zhoukou Xiaoxiang
Studio Co., Ltd.
8. MIGU Culture Technology Co., Ltd. comprises MIGU Video Technology Co., Ltd., MIGU Xinkong Cultural Technology
(Xiamen) Co., Ltd., MIGU Digital Media Co., Ltd., MIGU Music Co., Ltd. and MIGU Interactive Entertainment Co., Ltd.
5. Related-party transactions
(1) Sales and purchase of goods, and rendering and receipt of services
Statement of purchase of goods/ receipt of services
In RMB
Whether exceeding the
Details of related- Amount in the Transaction quota Amount in the prior
Related party approved transaction
party transactions current period approved period
amount
Yunhong
Communication
Technology Advertising agency 172,341,901.28 200,000,000.00 No 193,311,480.39
(Guangzhou) Co.,
Ltd
Publicity and
promotion, artist
agency, program
Subsidiaries of production, venue
Hunan Broadcasting exhibition and 48,000,000.00 2,000,000.00 Yes 526,415.09
System supporting
services, purchase
of goods, and
advertising agency
Bandwidth,
MIGU Culture copyright
Technology Co., purchase, 96,781,406.82 121,920,000.00 No 58,600,167.19
Ltd. advertising fee and
goods purchase
Purchase of
copyrights,
operator sharing,
GBS 863,002,591.18 781,300,000.00 Yes 553,460,079.49
publicity and
promotion, and
advertising agency
Operator sharing,
Subsidiaries of board and lodging
HTBI (excluding expenses, purchase 5,261,975.27 4,500,000.00 Yes 8,090,859.46
Yunhong) of goods and site
expenses
Artist agency,
Mango Media and technical fees and
2,512,891.82 650,000.00 Yes 12,128,629.83
its subsidiaries acceptance of
services
Advertising
Hunan EE
agency, Internet
Advertising Co., 3,191,482.69 2,000,000.00 Yes 2,698,445.39
access cooperation
Ltd.
fees
Xiaoxiang Film Copyright
80,543,509.28 95,150,000.00 No 158,633,453.49
Group purchase
Purchase of goods,
Subsidiaries of GBS 14,296,936.68 14,300,000.00 No 79,763,769.49
program
160
Mango Excellent Media Co., Ltd. Annual Report 2023
production,
publicity and
promotion,
copyright
purchase, and
advertising agency
service
iFlyTek Co., Ltd. Operator sharing 1,994,176.45 0.00 Yes
Operator added-
value sharing,
HBS 0.00 No 1,674,491.61
brand license, and
program use fees
Shanghai Mamma
Mia Interactive
Entertainment Purchase of goods 0.00 No 547,062.50
Technology Co.,
Ltd.
Statement of sales of goods/rendering of services
In RMB
Details of related-party
Related party Amount in the current period Amount in the prior period
transactions
Yunhong Communication
Technology (Guangzhou) Co., Advertising 566,316,002.35 849,964,110.56
Ltd.
Advertising, distribution
GBS revenue, publicity and 676,350,261.13 775,699,205.81
promotion
Hunan Broadcasting System Technical services 5,667.77 1,704,317.14
Member rights, distribution
Subsidiaries of Hunan
revenues, and merchandise 2,431,978.37 3,303,257.24
Broadcasting System
sales
Shanghai Mamma Mia
Sales of goods and supplier
Interactive Entertainment 32,923.80 642,662.54
charge
Technology Co., Ltd.
Operator revenue, advertising,
MIGU Culture Technology membership rights and
2,699,571,918.02 2,166,512,518.08
Co., Ltd. interests, derivative sales, and
sales of goods
Hunan EE Advertising Co.,
Advertising and sales of goods 28,355,845.92 29,240,355.34
Ltd.
Mango Media and its Membership rights, and sales
423,755.03 1,422,806.62
subsidiaries of goods
Xiaoxiang Film Group Copyright transfer 1,689,882.51 2,015,601.22
Member rights, distribution
Subsidiaries of GBS revenues, and merchandise 4,337,943.22 19,323,179.50
sales
Subsidiaries of HTBI Member rights, and artiste
75,471.70 377,358.80
(excluding Yunhong) revenues
iFlyTek Co., Ltd. Advertising revenue 7,223,630.17
Descriptions of related-party transactions with respect to the sales and purchase of goods, as well as rendering and receipt of services
(2) Related-party leases
The Company as lessor:
In RMB
Lease income recognized in Lease income recognized in
Name of lessee Category of leased assets
the current period the prior period
Mango Media Co., Ltd. and Lease and property
150,000.00
its subsidiaries management
The Company as lessee:
In RMB
Lessor Categor Expenses related to Variable lease Paid rent Assumed interest Added use right assets
161
Mango Excellent Media Co., Ltd. Annual Report 2023
y of short-term leases payments expenses of lease
leased and low-value through profit or liabilities
assets assets leases loss not included
subject to in the
simplified measurement of
treatment, if any lease liabilities,
if any
Amou Amou
Amou
nt in Amount nt in
nt in Amount in Amount in Amount in Amount in Amount in Amount in
the in the the
the the current the prior the current the prior the current the prior
curren prior curren
prior period period period period period period
t period t
period
period period
Subsidiari Buildin 425,760. 24,085,967 20,948,243 3,683,160. 3,301,840. 14,507,383 3,361,745.
es of GBS gs 00 .09 .47 64 93 .03 10
Subsidiari
es of
Buildin 699,900.3 559,675.4
Hunan 64,564.85
gs 4 2
Broadcasti
ng System
Subsidiari
es of
Buildin 17,611,301. 12,921,465 1,049,293. 963,132.9 6,765,197. 19,871,390
HTBI
gs 70 .56 71 1 35 .55
(excluding
Yunhong)
Explanation about related-party leases:
(3) Compensation for key management
In RMB
Item Amount in the current period Amount in the prior period
Compensation for key management
33,881,000.00 34,612,300.00
personnel
(4) Other related-party transactions
The Company acquired 100% shares of Golden Eagle Cartoon from Mango Media in the current period. See Note VII.54 and Note
IX.1 in Section X for details.
6. Receivables from and payables to related parties
(1) Accounts receivable
In RMB
Closing balance Opening balance
Item Related parties Provisions for bad Provisions for bad
Gross carrying value Gross carrying value
debts debts
Accounts
GBS 543,586,847.15 561,086,053.15
receivable
Accounts Subsidiaries of
361,429.50 990,268.43
receivable GBS
Tianjin Sunshine
Accounts Meichuang
766,557.10 766,557.10 766,557.10 766,557.10
receivable Technology Co.,
Ltd.
Yunhong
Communication
Accounts
Technology 68,026,149.58 104,970,272.61
receivable
(Guangzhou) Co.,
Ltd
MIGU Culture
Accounts
Technology Co., 768,340,398.63 38,518,127.65 435,996,686.27 21,941,878.57
receivable
Ltd.
Accounts Subsidiaries of 7,370,220.54 7,313,220.54
162
Mango Excellent Media Co., Ltd. Annual Report 2023
receivable Hunan
Broadcasting
System
Hunan EE
Accounts
Advertising Co., 194,899,844.54 273,927,032.36
receivable
Ltd.
Accounts Mango Media and
598,245.52 382,284.32
receivable its subsidiaries
Shanghai Mamma
Mia Interactive
Accounts
Entertainment 8,310.60 2,493.18 8,310.60 831.06
receivable
Technology Co.,
Ltd.
Accounts Xiaoxiang Film
1,464,768.12 335,354.75
receivable Group
Accounts
iFlyTek Co., Ltd. 1,868,771.35 93,438.57
receivable
Subsidiaries of
Accounts
HTBI (excluding 4,503.00
receivable
Yunhong)
Subtotal 1,587,291,542.63 39,380,616.50 1,385,780,543.13 22,709,266.73
MIGU Culture
Notes receivable Technology Co., 1,371,194,442.95
Ltd.
Yunhong
Communication
Notes receivable Technology 50,000,000.00
(Guangzhou) Co.,
Ltd
Subtotal 1,421,194,442.95
Accounts
receivable GBS 29,000,000.00 30,300,000.00
financing
Accounts MIGU Culture
receivable Technology Co., 664,078,684.63
financing Ltd.
Subtotal 693,078,684.63 30,300,000.00
Subsidiaries of
Prepayments HTBI (excluding 5,000.00 3,568.00
Yunhong)
Tianjin Sunshine
Meichuang
Prepayments 6,014,723.96 6,014,723.96 6,014,723.96 6,014,723.96
Technology Co.,
Ltd.
Subsidiaries of
Prepayments 2,683,842.12 2,617,385.23
GBS
Shanghai Mamma
Mia Interactive
Prepayments Entertainment 13,399.99
Technology Co.,
Ltd.
Mango Media and
Prepayments 23,894.18 26,493.58
its subsidiaries
Yunhong
Communication
Prepayments Technology 160,754.72
(Guangzhou) Co.,
Ltd
Subtotal 8,888,214.98 6,014,723.96 8,675,570.76 6,014,723.96
Subsidiaries of
Hunan
Other receivables 789,360.97 789,360.97
Broadcasting
System
Subsidiaries of
Other receivables HTBI (excluding 1,273,334.80 1,393,334.80
Yunhong)
163
Mango Excellent Media Co., Ltd. Annual Report 2023
Shanghai Mamma
Mia Interactive
Other receivables Entertainment 2,029,764.69 2,029,764.69 2,329,764.69 2,329,764.69
Technology Co.,
Ltd.
Other receivables GBS 20,000.00
Subsidiaries of
Other receivables 1,031,581.00 1,005,081.00
GBS
Mango Media and
Other receivables 22,048.91 928,917.89
its subsidiaries
Hunan
Other receivables Broadcasting 30,000.00 30,000.00
System
Subtotal 5,196,090.37 2,029,764.69 6,476,459.35 2,329,764.69
MIGU Culture
Contract assets Technology Co., 456,846,336.30 22,842,316.82 530,029,532.96 26,501,476.65
Ltd.
Subtotal 456,846,336.30 22,842,316.82 530,029,532.96 26,501,476.65
(2) Accounts payable
In RMB
Item Related parties Closing book balance Opening book balance
Yunhong Communication
Accounts payable Technology (Guangzhou) Co., 150,429,482.95 230,784,237.63
Ltd
Accounts payable Hunan Broadcasting System 7,918,506.80 7,938,849.06
Accounts payable GBS 227,335,748.86 94,915,908.41
Accounts payable Subsidiaries of GBS 3,285,130.10 3,477,774.03
Shanghai Mamma Mia
Accounts payable Interactive Entertainment 21,015.94 359,769.40
Technology Co., Ltd.
MIGU Culture Technology Co.,
Accounts payable 56,656,887.99 42,409,357.34
Ltd.
Subsidiaries of HTBI
Accounts payable 622,908.63 22,000.30
(excluding Yunhong)
Mango Media and its
Accounts payable 514,847.07 37,092.58
subsidiaries
Accounts payable Hunan EE Advertising Co., Ltd. 131,922,236.18 132,483,303.41
Accounts payable Xiaoxiang Film Group 80,484,310.47 47,548,491.26
Subsidiaries of Hunan
Accounts payable 25,083,333.35
Broadcasting System
Accounts payable iFlyTek Co., Ltd. 2,531,110.00
Subtotal 686,805,518.34 559,976,783.42
Notes payable GBS 272,855,000.00 169,608,024.71
Notes payable Xiaoxiang Film Group 50,400,000.00 95,600,000.00
MIGU Culture Technology Co.,
Notes payable 25,500,000.00 10,948,683.43
Ltd.
Notes payable Subsidiaries of GBS 38,360,000.00
Yunhong Communication
Notes payable Technology (Guangzhou) Co., 15,408,000.00
Ltd.
Subtotal 348,755,000.00 329,924,708.14
Contract liabilities Hunan Broadcasting System 1,886,792.45 1,886,792.45
MIGU Culture Technology Co.,
Contract liabilities 1,281,446.49 3,628,680.18
Ltd.
Contract liabilities Hunan EE Advertising Co., Ltd. 319,273.40 311,881.28
Mango Media and its
Contract liabilities 6,100.00
subsidiaries
Contract liabilities Subsidiaries of GBS 2,378,035.43 1,296,394.11
Contract liabilities Xiaoxiang Film Group 15,887.00 15,860.00
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Mango Excellent Media Co., Ltd. Annual Report 2023
Yunhong Communication
Contract liabilities Technology (Guangzhou) Co., 2,460,203.60 2,206,439.33
Ltd.
Subsidiaries of Hunan
Contract liabilities 41,700.00 55,335.53
Broadcasting System
Subtotal 8,389,438.37 9,401,382.88
Subsidiaries of HTBI
Other payables 108,422.13 88,384.49
(excluding Yunhong)
Mango Media and its
Other payables 3,795,134.25 15,798,134.25
subsidiaries
Subsidiaries of Hunan
Other payables 13,455,655.01 2,373,786.45
Broadcasting System
Other payables GBS 708,051.10 28,051.10
Other payables Subsidiaries of GBS 2,765,789.04 3,543,587.59
MIGU Culture Technology Co.,
Other payables 3,000.00 3,000.00
Ltd.
Other payables Hunan Broadcasting System 64,005,667.77
Subtotal 20,836,051.53 85,840,611.65
Mango Media and its
Dividends payable 300,000,000.00
subsidiaries
Subtotal 300,000,000.00
Other current liabilities Hunan Broadcasting System 113,207.55
Other current liabilities Hunan EE Advertising Co., Ltd. 11,320.75
Subtotal 124,528.30
Non-current liabilities due Subsidiaries of HTBI
6,726,989.84 11,646,253.42
within one year (excluding Yunhong)
Non-current liabilities due Subsidiaries of Hunan
706,625.23
within one year Broadcasting System
Non-current liabilities due
Subsidiaries of GBS 12,049,411.52 18,456,135.43
within one year
Subtotal 19,483,026.59 30,102,388.85
Subsidiaries of HTBI
Lease liabilities 9,311,800.75 12,664,387.49
(excluding Yunhong)
Subsidiaries of Hunan
Lease liabilities 14,784,960.57 14,791,685.46
Broadcasting System
Lease liabilities Subsidiaries of GBS 30,562,364.15 44,407,335.14
Subtotal 54,659,125.47 71,863,408.09
XV. Commitments and Contingencies
1. Significant commitments
Significant commitments as of the balance sheet date
The table shows the irrevocable external business contracts executed by the Company and its subsidiaries as of the balance
sheet date:
Copyright purchase commitment
In RMB0’000
Copyright purchase agreements Closing balance Opening balance
The 1st year subsequent to the balance sheet date 54,571.00 54,571.00
The 2nd year subsequent to the balance sheet date 54,571.00 54,571.00
The 3rd year subsequent to the balance sheet date 54,571.00
Total 109,142.00 163,713.00
Copyright purchase agreements are concluded by and between Happy Sunshine and GBS for considerations that should be paid
by the Company to purchase copyrights in each relevant agreement period.
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2. Contingencies
(1) Significant contingencies as of the balance sheet date
1. Beijing Guolong Film Investment Co., Ltd. (hereinafter referred to as “Guolong”) is a debtor to Lead Capital Management Co.,
Ltd. (hereinafter referred to as “Lead Capital”), and Happy Sunshine purchased the exclusive information network dissemination right
for the TV series “If Paris Downcast” from Guolong at a total licensing fee of RMB74.4 million. Happy Sunshine has already made
the down payment of 22.32 million. As Guolong has not fully delivered the copyright chain of the works, Happy Sunshine has not
made the remaining two payments of RMB 52.08 million in total. In August 2019, Lead Capital filed a subrogation lawsuit against
Happy Sunshine with Changsha Intermediate People’s Court, requesting Happy Sunshine to settle the payment and liquidated damages
of approximately RMB20,461,100 to Lead Capital on behalf of Guolong. During the litigation, Lead Capital applied with the Changsha
Intermediate People’s Court for property preservation, as a result of which RMB21 million in the account opened at the Business
Department of CZBank Changsha Branch under the name of Happy Sunshine. Happy Sunshine sued Guolong in a separate case on the
grounds that Guolong failed to fulfill the main obligations under the contract, requesting the termination of the copyright procurement
contract. In the ruling in effect, it is found that the copyright procurement contract for “If Paris Downcast” should be terminated,
Guolong should pay liquidated damages of RMB 2.98 million to Happy Sunshine, and the amount of the royalty to be paid by Happy
Sunshine to Guolong should be tried in a separate case.
The subrogation case of Lead Capital v. Sunshine was heard by the Hunan Provincial Higher People’s Court as the court of second
instance. As Guolong, a key party in the case, was ruled bankrupt during the second instance, the trial of the case was suspended.
2. With respect to the dispute between Xiangshan Wukong Cultural Media Co., Ltd. (“Xiangshan Wukong”) and Mango Studios
arising out of the settlement of investment in the TV drama “Great Expectation”, Xiangshan Wukong brought a suit against Mango
Studios at the Huairou District People’s Court of Beijing, requesting Mango Studios to pay the settlement price of about RMB28.3155
million. Mango Studios has submitted an opposition to jurisdiction over the case, which is pending review. The final result of the case
is subject to the judgment rendered by the court.
XVI. Events Subsequent to the Balance Sheet Date
1. Profit distribution
Dividends to be distributed per 10 shares (RMB) 1.8
Number of bonus shares to be distributed per 10 shares (shares) 0
Number of shares to be distributed per 10 shares through
0
capitalization of capital reserve (shares)
Dividends to be distributed per 10 shares approved and declared
1.8
(RMB)
Number of bonus shares to be distributed per 10 shares approved
0
and declared (shares)
Number of shares to be distributed per 10 shares through
0
capitalization of capital reserve approved and declared (shares)
To distribute a cash dividend of RMB1.8 (inclusive of tax) per
10 shares to all shareholders on the basis of 1,870,720,815
Profit distribution proposal
shares, without distributing any bonus shares or transferring
any capital reserve to the share capital.
XVII. Other Significant Events
1. Segment information
(1) Determination basis and accounting policies of reporting segments
The Company has established four reporting segments being Mango TV Internet video business, new media interactive
entertainment content production, content e-commerce and others, which are divided based on its internal organizational structure,
management requirements, and inner reporting system, among others, in light of the industry and product actuality. The reporting
information on each segment is disclosed according to the accounting policies and measurement standards adopted thereby when
reporting to the management, the measurement bases of which are in line with the accounting and measurement bases for the preparation
of the financial statements.
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Mango Excellent Media Co., Ltd. Annual Report 2023
(2) Financial information of reporting segments
In RMB
New media
Mango TV Internet interactive
Content E- Inter-segment
Item Video Business entertainment Others Total
commerce offset
content production
and operation
Operating revenue 10,614,030,327.62 1,149,941,038.24 2,822,529,201.38 41,515,734.60 14,628,016,301.84
Operating cost 6,229,223,213.61 855,899,278.24 2,682,738,552.41 35,145,850.68 9,803,006,894.94
(3) If the Company has no reporting segment or is unable to disclose total assets and liabilities of each
reporting segment, please give the reason therefor
Happy Sunshine, a subsidiary of the Company, engages in business involving two segments i.e. Mango TV Internet video, and
new media interactive entertainment content production and operation, the total assets and liabilities of each reporting segment of
whom cannot be disclosed as its assets and liabilities cannot be divided according to the reporting segments.
XVIII. Notes to Main Items in the Financial Statements of the Parent Company
1. Other receivables
In RMB
Item Closing balance Opening balance
Dividends receivable 300,000,000.00
Other receivables 80,009,604.19 80,020,000.00
Total 80,009,604.19 380,020,000.00
(1) Dividends receivable
1) Classification of dividends receivable
In RMB
Project (or investee) Closing balance Opening balance
Happy Sunshine 300,000,000.00
Total 300,000,000.00
2) Presentation by method of recognition of provision for bad debts
□Applicable N/A
(2) Other receivables
1) Classification of other receivables by nature
In RMB
Nature Closing book balance Opening book balance
Hunan Mango Entertainment Co., Ltd. 80,000,000.00 80,020,000.00
Temporary payment receivable 9,701.20
Total 80,009,701.20 80,020,000.00
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Mango Excellent Media Co., Ltd. Annual Report 2023
2) Presentation by aging
In RMB
Aging Closing book balance Opening book balance
Within 1 year (inclusive) 9,701.20 20,000.00
Over 3 years 80,000,000.00 80,000,000.00
3-4 years 80,000,000.00
4-5 years 80,000,000.00
Total 80,009,701.20 80,020,000.00
3) Presentation by method of recognition of provision for bad debts
Applicable □N/A
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carrying
Proportio Amoun Proportio Carrying value Amoun
Amount Amount Proportion Proportion value
n t n t
Incl.:
Provision for bad debts 80,020,00 80,020,000.
made by group 80,009,701.20 100.00% 97.01 80,009,604.19 100.00%
0.00 00
Incl.:
80,020,00 80,020,000.
Total 80,009,701.20 100.00% 97.01 80,009,604.19 100.00%
0.00 00
Provisions for bad debts made individually: RMB97.01.
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Group of receivables from
related parties controlled by the 80,000,000.00
same actual controller
Aging group 9,701.20 97.01 1.00%
Total 80,009,701.20 97.01
Description of basis for determining the group:
Provisions for bad debts made in accordance with the general model of ECL:
In RMB
Stage I Stage II Stage III
Provisions for bad
Lifetime ECL (without Lifetime ECL (with Total
debts Future 12-month ECL
credit impairment) credit impairment)
Balance as at January
1, 2023 in the current
period
Current provision 97.01 97.01
Balance as at
97.01 97.01
December 31, 2023
Basis for determination of stages and proportion of provision for bad debts:
Changes in book balance whose loss allowance changed significantly in the current period:
□Applicable N/A
4) Provisions, recovery or reversal of bad debts for the period
Provision for bad debts made for the current period:
In RMB
Changes for the current period
Opening
Category Recovery or Closing balance
balance Provision Write-off Others
reversal
Aging group 97.01 97.01
Total 97.01 97.01
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Mango Excellent Media Co., Ltd. Annual Report 2023
Including significant amounts recovered or reversed from the current provision for bad debts:
In RMB
Basis for determining
Amount of recovery or the proportion of
Entity Reason for recovery Method of recovery
reversal provision for bad debts
and its reasonableness
No significant provision for bad debts was recovered or reversal in the current period.
5) Top five closing balances of other receivables categorized by debtor
In RMB
Proportion in total Closing balance of
Entity Nature Closing balance Aging closing balance of provisions for bad
other receivables debts
Hunan Mango
Receivables from
Entertainment Co., 80,000,000.00 4-5years 99.99% 0.00
subsidiary
Ltd.
Hunan Provincial
Temporary
Public Institution
payment 9,701.20 Within 1 year 0.01% 97.01
Pension Service
receivable
Center
Total 80,009,701.20 100.00% 97.01
2. Long-term equity investments
In RMB
Closing balance Opening balance
Item Provision for Provision for
Gross carrying value Carrying value Gross carrying value Carrying value
impairment impairment
Investments
in 12,173,055,024.52 12,173,055,024.52 11,976,375,839.55 11,976,375,839.55
subsidiaries
Total 12,173,055,024.52 12,173,055,024.52 11,976,375,839.55 11,976,375,839.55
(1) Investments in subsidiaries
In RMB
Changes in the current period Closing
Opening balance of
Opening balance Provisions Closing balance balance of
Investees provisions for bad Additional Decreased
(carrying value) for Others (carrying value) provisions
debts investment investment
impairment for bad debts
Happy
10,845,049,607.62 10,845,049,607.62
Sunshine
EE-Media 535,281,326.72 535,281,326.72
Happigo 596,044,905.21 596,044,905.21
Golden
Eagle 196,679,184.97 196,679,184.97
Cartoon
Xiaomang
E-
comemrce
Total 11,976,375,839.55 196,679,184.97 12,173,055,024.52
3. Operating revenue and operating cost
In RMB
Amount in the current period Amount in the prior period
Item
Income Cost Income Cost
Other business 11,056.00 18,867.92
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Mango Excellent Media Co., Ltd. Annual Report 2023
Total 11,056.00 18,867.92
Breakdown of operating revenues and operating costs:
In RMB
Segment 1 Segment 2 Total
Category of
Operating Operating Operating Operating Operating Operating
contract Operating cost Operating cost
revenue revenue cost revenue cost revenue
By segment
Incl.:
Others 11,056.00 11,056.00
By operating
region
Incl.:
Hunan 11,056.00 11,056.00
By market or
customer type
Incl.:
By contract
type
Incl.:
By transfer
time of goods
Incl.:
Revenue
recognized at
a point in 11,056.00 11,056.00
time
By term of
contract
Incl.:
By sales
channel
Incl.:
Total
Information related to performance obligations:
Type of
Amount that
Time for Nature of goods warranty
Whether the the Company is
satisfaction of Material terms to be provided by the
Item Company is a expected to
performance of payment transferred by Company and
primary obligor return to the
obligation the Company related
customer
obligation
Other information:
Information related to the transaction price allocated to the outstanding performance obligations:
The revenue corresponding to the performance obligations for which the contract has been signed but has not yet been performed
or fully performed at the end of the Reporting Period was nil, of which RMB[ ] is expected to be recognized as revenue in [ ], RMB[ ]
is expected to be recognized as revenue in [ ], and RMB[ ] is expected to be recognized as revenue in [ ].
Material changes to contract or material adjustment to transaction price:
In RMB
Item Method of accounting treatment Effect on revenues
Other information:
4. Investment income
In RMB
Item Amount in the current period Amount in the prior period
Long-term equity investment income
600,000,000.00 300,000,000.00
accounted by the cost method
Total 600,000,000.00 300,000,000.00
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Mango Excellent Media Co., Ltd. Annual Report 2023
XIX. Supplementary Information
1. Statement of non-recurring gain or loss for the current period
Applicable □N/A
In RMB
Item Amount Note
Gain or loss on disposal of non-current assets 1,151,553.70
Government subsidies accrued to the current
profit and loss (excluding government
subsidies that are closely related to the
business of the Company and are provided in 63,122,567.77
fixed amount or quantity continuously
according to the applicable polices and
standards of the country)
Profit and loss from investment or asset
92,809,746.83
management by commissioned parties
Reversal of impairment loss on accounts
17,343,043.26
receivable tested for impairment individually
Net profit or loss of subsidiaries acquired
through business merger involving entities
32,481,963.81
under common control from the beginning of
the current period to the merger date
Profit and loss from debt restructuring 3,000,000.00
One-off effect of adjustments of tax,
One-off adjustment due to changes in the
accounting and other laws and regulations on 1,628,790,218.38
enterprise income tax policy
current profit or loss
Other non-operating revenue and expenditure
25,036,359.58
other than those listed above
Less: Effect on income tax 243,024.40
Effect on minority interests (exclusive of
3,259,871.08
tax)
Total 1,860,232,557.85 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□Applicable N/A
The Company has no other items of profit and loss that meet the definition of non-recurring profit and loss.
Explanations for classifying non-recurring profit and loss items enumerated in the Explanatory Announcement No. 1 for Public
Company Information Disclosures – Non-recurring Profits and Losses as recurring profit and loss items:
□Applicable N/A
2. Return on equity and earnings per share
Earnings per share
Profit for the Reporting Period Weighted average return on equity (%) Diluted EPS
Basic EPS (RMB/share)
(RMB/share)
Net loss attributable to the
17.34% 1.90 1.90
Company’s ordinary shareholders
Net profit attributable to the parent
company’s shareholders after
8.32% 0.91 0.91
deduction of non-recurring gain or
loss
3. Accounting data differences arising from accounting standard of the PRC and the International
Accounting Standards
(1) Differences in net profits and net assets in the financial reports disclosed concurrently under international
accounting standards and Chinese accounting standards
□Applicable N/A
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Mango Excellent Media Co., Ltd. Annual Report 2023
(2) Differences in net profits and net assets in the financial reports disclosed concurrently under overseas
accounting standards and Chinese accounting standards
□Applicable N/A
(3) Explanation about the accounting date differences under overseas accounting standards and Chinese
accounting standards, and if the data audited by a foreign firm have been conciliated for such differences,
name of such foreign firm
□Applicable N/A
172
