2020 Annual Report of Mango Excellent Media Co., Ltd.
MANGO EXCELLENT MEDIA CO., Ltd.
2020 Annual Report
April 2021
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section I Important Notes, Content and Definitions
The board of directors, board of supervisors, directors, supervisors, and
officers of the Company certify that this report is free from any
misrepresentations, misleading statements or material omissions, and are jointly
and severally liable for the authenticity, accuracy and completeness of the
content.
ZHANG Huali, the legal representative, LIANG Deping, the chief financial
officer, and TAO Jinyu, the head of accounting department (the person in
charge of accounting) of the Company undertake that the financial statements
contained herein are authentic, accurate and complete.
All directors of the Company attended the board meeting with respect to the
review of the annual report.
The forward-looking contents in respects of future development outlook, etc.,
herein are plans in nature, which shall in no event constitute the Company’s
substantive commitment to investors and related persons. The investors and
related persons should maintain sufficient risk awareness thereof and
understand the differences between plans, forecasts, and commitments.
The Company describes the possible risks in its operations and the
measures to be taken in Section IV "Discussion and Analysis of Business
Conditions - Development Outlook" for investors’ review.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
The proposal for profit distribution approved by the Board is as follows: on
the basis of 1,780,377,511 shares in total, all shareholders will be paid cash
dividends (including tax) at RMB1.3 and given 0 bonus shares (including tax)
per 10 shares and awarded with additional stock of 0 shares per 10 shares with
corresponding consideration to be paid by capital reserve.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Content
Section I Important Notes, Content and Definitions ......................................................................................................................... 2
Section II General Information and Financial Indicators of the Company ......................................................................................... 7
Section Ⅲ Overview of the Company’ s Business ......................................................................................................................... 12
Section IV Discussion and Analysis of Business Conditions .......................................................................................................... 19
Section V Important Events .......................................................................................................................................................... 43
Section VI Share Changes and Information of Shareholders ........................................................................................................... 83
Section VII Preferred Shares ......................................................................................................................................................... 93
Section VIII Convertible Bonds .................................................................................................................................................... 94
Section IX Directors, Supervisors, Officers and Employees ........................................................................................................... 95
Section X Governance ................................................................................................................................................................ 107
Section Ⅺ Corporate Bonds........................................................................................................................................................ 116
Section XII Financial Report....................................................................................................................................................... 117
Section XIII List of Documents Available for Inspection ............................................................................................................. 254
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Definitions
Words Refers to Definition
Mango Excellent Media, Company, the Refers to
Mango Excellent Media Co., Ltd.
Company or Listed Company
Mango Excellent Media Co., Ltd. Refers to The full name of 芒果超媒股份有限公司 in English
MANGO Refers to The abbreviated name of 芒果超媒股份有限公司 in English
Refers to Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., a
Happy Sunshine
wholly-owned company of the Listed Company
Refers to Mango Studios Culture Co., Ltd., a wholly-owned company of the
Mango Studios
Listed Company
Refers to Hunan Mango Entertainment Co., Ltd., a wholly-owned company of the
Mango Entertainment
Listed Company
Refers to Shanghai EE-Media Co., Ltd., a wholly-owned company of the Listed
EE-Media
Company
Refers to Shanghai Mangofun Technology Co., Ltd., a wholly-owned company of
Mangofun
the Listed Company
Happigo Refers to Happigo Co. Ltd., a wholly-owned company of the Listed Company,
Refers to Hunan Happy Money Microfinance Co., Ltd., a wholly-owned company
Happy Money
of the Listed Company
Refers to An internet video platform subordinated to the Listed Company and
Mango TV
operated by Happy Sunshine
China Mobile Refers to China Mobile Communications Group Co., Ltd.
Refers to Internet Protocol Television, a technology integrated with internet,
multimedia, communication, and other technologies through broadband
IPTV
network to provide family users a variety of interactive services
including digital television
Refers to Over the Top, which provides a variety of video and data services to
OTT
users via the Internet
Refers to Intellectual property, the property rights of an obligee to the results of
IP
his or her intellectual work
APP Refers to Application
PAD Refers to Portable Device
PC Refers to Personal computer
TV Refers to Television
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2020 Annual Report of Mango Excellent Media Co., Ltd.
AR Refers to Augmented Reality
VR Refers to Virtual Reality
5G Refers to 5G Network
KOL Refers to Key Opinion Leader
UGC Refers to User Generated Content
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section II General Information and Financial Indicators of the
Company
I. Company profile
Stock abbreviation
Mango Excellent Media Stock code 300413
Company name in Chinese 芒果超媒股份有限公司
Abbreviation name in Chinese 芒果超媒
Company name in English (if
Mango Excellent Media Co., Ltd.
any)
Abbreviation name in English
Mango
(if any)
Legal representative ZHANG Huali
Registration address Golden Eagle TV Culture City, Changsha City, Hunan Province
Post code of registration
410003
address
Office address Golden Eagle TV Culture City, Changsha City, Hunan Province
Post code of office address 410003
Website https://www.mgtv.com
Email mangocm@mangocm.com
II. Contact and contact information
Secretary of the Board Representative of Security Affairs
Name WU Jun HUANG Jianyong
Golden Eagle TV Culture City, Changsha Golden Eagle TV Culture City, Changsha
Address
City, Hunan Province City, Hunan Province
Telephone (0731) 82967188 (0731)82967188
Fax (0731) 82897962 (0731) 82897962
Email mangocm@mangocm.com mangocm@mangocm.com
III. Information disclosure and the locations
China Securities Journal, Securities Times, Securities Daily and Shanghai
Designated newspapers for information disclosure
Securities News
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Website designated by CSRC for the publication of
http://www.cninfo.com.cn
the Company's annual report
The Company's annual report is available at Golden Eagle TV Culture City, Changsha City, Hunan Province
VI. Other relevant information
The certified public accountants engaged by the Company
Name Pan-China Certified Public Accountants LLP
Office address 19/F, New Century Building, No.198, Furong Middle Road, Changsha City, Hunan Province
Certified Public Accountant in
LI Xinkui, ZHANG Hong
signature
Sponsor performing continuous supervision duties in the Reporting Period
□ Applicable √ N/A
Financial advisor performing continuous supervision duties in the Reporting Period
□ Applicable √ N/A
V. Major accounting data and financial indicators
Whether it is necessary for the Company to make retrospective adjustment or restatement on the accounting data in previous years
□ Yes √ No
Year-on-year
2020 2019 increase or 2018
decrease
Operating income (in
14,005,534,955.36 12,500,664,232.05 12.04% 9,660,661,413.72
RMB)
Net profit attributable to
shareholders of the listed 1,982,159,476.82 1,156,285,253.73 71.42% 865,568,532.45
company (in RMB)
Net profit attributable to
shareholders of the listed
company, net of 1,846,203,181.73 1,093,036,165.68 68.91% 287,569,612.17
non-recurring profit or loss
(in RMB)
Net cash flows from
operating activities (in 580,970,353.08 292,866,711.18 98.37% -376,920,617.58
RMB)
Basic earnings per share
1.11 0.66 68.18% 0.54
(RMB/share)
Diluted earnings per share
1.11 0.66 68.18% 0.54
(RMB/share)
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Weighted average return on
20.46% 15.68% 4.78% 17.43%
equity
Year-on-year
At the end of 2020 At the end of 2019 increase or At the end of 2018
decrease
Total assets (in RMB) 19,265,699,802.98 17,078,206,149.68 12.81% 12,111,376,784.55
Net asset attributable to
shareholders of the listed 10,587,978,185.42 8,783,859,219.07 20.54% 5,639,373,295.72
company (in RMB)
Whether the lower of the Company’s net profit before and after deduction of the non-recurring profit or loss in the past three
accounting years is negative, and the audit report of the last year shows that it remains uncertain as to the Company’s ability to
continue as a going concern.
□ Yes √ No
Whether the lower of the net profit before and after deduction of the non-recurring profit or loss is negative
□ Yes √ No
VI. Major financial indicators by quarter
In RMB
Q1 Q2 Q3 Q4
Operating income 2,727,232,097.21 3,046,531,909.01 3,696,934,898.85 4,534,836,050.29
Net profit attributable to
479,871,363.62 623,504,210.38 508,514,082.57 370,269,820.25
shareholders of the listed company
Net profit attributable to
shareholders of the listed company, 441,483,222.17 533,648,020.70 475,483,944.20 395,587,994.66
net of non-recurring profit or loss
Net cash flows from operating
-353,131,865.13 364,640,666.35 349,564,689.33 219,896,862.53
activities
Whether there is any material difference between the above financial indicators, or their aggregates, and those disclosed in the
Company's quarterly and semi-annual reports
□ Yes √ No
VII. Differences between accounting data under foreign and domestic accounting principles
1. Differences between net profit and net assets disclosed in the financial report under Chinese Accounting
Standards and International Accounting Standards
□ Applicable √ N/A
There is no difference between net profit and net assets disclosed in the financial report under Chinese Accounting Standards and
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2020 Annual Report of Mango Excellent Media Co., Ltd.
International Accounting Standards during the Company’s Reporting Period.
2. Differences between net profit and net assets disclosed in the financial report under Chinese Accounting
Standards and Oversea Accounting Standards
□ Applicable √ N/A
There is no difference between net profit and net assets disclosed in the financial report under Chinese Accounting Standards and
Oversea Accounting Standards during the Company’s Reporting Period.
VIII. Items and amounts of non-recurring profit or loss
√ Applicable □ N/A
In: RMB
Items 2020 Amount 2019 Amount 2018 Amount Note
Profit or loss from disposal of non-current
Mainly due to income
assets (including the offset part of the 70,055,759.62 -253,138.65 -592,600.43
from equity disposal
retained asset impairment provisions)
Governmental grants included in the current
profit or loss (except for those closely
related with the normal operation of the
49,700,923.82 57,599,556.19 30,084,939.12
Company and gained at a fixed amount or
quantity according to certain standards
based on State policies)
Profit or loss from entrusting others with
3,906,349.28 7,344,704.18 29,283,549.28
investment or asset management
Enterprises’ reorganization fees, such as
-6,109,972.47
staffing expenses and integration fees
Current net profit or loss of the subsidiaries
established by merger of enterprises under
common control from the opening of the 633,706,593.00
accounting period to the date of
consolidation
Reversal of impairment provisions of
accounts receivable and contract assets that 31,747,600.00 1,800,000.00
have been tested for impairment separately
Other non-operating income and expenses
-18,913,395.60 -111,786.45 -31,529,319.92
besides the above items
Less: impact on income tax 1,209.77 2,138,585.88 2,610,651.01
Impact on minority equity (net of tax) 539,732.26 991,661.34 74,233,617.29
Total 135,956,295.09 63,249,088.05 577,998,920.28 --
It is required to explain the basis on which the Company defined the items as those of non-recurring profit or loss under the
Information Disclosure and Explanation Announcement No. 1 for Companies with Publicly Offered Securities- Non-recurring Profit
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2020 Annual Report of Mango Excellent Media Co., Ltd.
or Loss, and the reason why the Company defined as items of recurring profit or loss for those are illustrated as items of
non-recurring profit or loss pursuant to the Information Disclosure and Explanation Announcement No. 1 for Companies with
Publicly Offered Securities- Non-recurring Profit or Loss.
□ Applicable √ N/A
The Company has no cases described above during the Reporting Period.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section Ⅲ Overview of the Company’ s Business
I. Principal Activities of the Company within the Reporting Period
(I) About the principal activities
The Company carries out its principal activities through Mango TV Internet Video Business, New Media Interactive
Entertainment Content Production and Media Retail, among other businesses. By leveraging its distinctive green media convergence,
and in light of its media attributes and content genes, the Company has built an ecology of entire media industry chain around
internet video platform operation with coordinated development of upstream and downstream businesses covering membership,
advertising, IPTV, OTT, movie and TV drama, variety show, artists agency, music copyright operation, game and IP derivative
development, and content e-commerce, etc.
1. Mango TV internet video business
Taking the channel synergy advantage of “one cloud for multiple screens”, the Company is committed to building a high
threshold long video platform. Facing the global user group, featured by “self-made competitive products + Mango exclusive
broadcast + high quality selection” and relying on the increasingly mature self-made content ecosystem and differentiated quality
content matrix, the Company has launched a wide range of content products covering variety show, movie and TW drama, film,
animation and short video, etc. Through the self-developed and operation Mango TV internet video platform, IPTV, OTT, and other
channels, it provides content services across the full screens to cover PC web terminal, PC client, mobile APP, internet TV and so on.
The sales modes for the Mango TV internet video business are mainly divided into advertising sales, member sales and operator
business sales. Advertising sales are primarily sub-divided into soft sales and hard sales, of which the soft sales refer to a mode
around the content of fully exploring the marketing value of high-quality content IP to provide customers with advertising products
such as naming and placement, while hard sales refer to a mode of continuous expansion of the platform popularity and enhancing
the number of platform visits through high-quality content services to provide customers with advertising products such as pre-rolls
and spots. Member sales are primarily sub-divided into online sales and offline sales, of which online sales refer to a mode whereby
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2020 Annual Report of Mango Excellent Media Co., Ltd.
the Company attracts users to buy membership packages on a monthly, seasonal, and annual basis, etc., through online consumption
by virtue of its advantages of rich copyright resources and high-quality exclusive broadcasting content, while offline sales refer to a
mode of selling membership cards to users. The operator large-screen business sales mainly refer to a mode of entering into
cooperation agreements with major operators and cable TV operators based on which the Company will provide content products and
cooperate with marketing, and the operators will develop users, with the relevant revenue to be shared between them after the users
place orders.
Mobile APP Homepage of Mango TV PC Web Homepage of Mango TV
TV Homepage of Mango TV
2. New media interactive entertainment content production
(1) Content production and operation. As one of the leading content producers in the market, the Company has an open and
innovative talent incentive mechanism and continuously produces high-quality content that meets the needs of the public, creating a
business closed-loop of the entire industry chain to cover IP copyright, planning and creation, shooting and production, commercial
distribution, and copyright sales, among others.
(2) Artist agency. By exploring and cultivating potential new talents, the Company provides artists with all-round services from
positioning, publicity, modeling, and business endorsement, etc. to form a mature artist echelon with rich levels and complete types.
It maximizes the commercial value of artists by organizing them to participate in movie and TV dramas, variety shows, commercial
performances, brand concerts, brand endorsements, and peripheral derivative product licenses.
(3) Music copyright. Based on the long-term accumulation and constant enlarging of music IP resources by artist brokers, the
Company carries out exclusive digital music licensing businesses such as online APP licensing, overseas digital music licensing,
game licensing, program use licensing, movie, and TV soundtrack cooperation.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
(4) Game and IP derivative development. The Company creates competitive game products by virtue of Mango’s high-quality
IP resources; operates e-sports IP events and creates IPTV e-sports channel to provide value-added services; carries out IP derivatives
licensing and development, IP offline entertainment entity projects, among other businesses; and develop prime game products based
on Mango’s excellent IP resources.
3. Content e-commerce business
(1) The traditional media retail business mainly includes TV shopping, media e-commerce and outbound call. In terms of TV
shopping, the cable TV network is leveraged to provide shopping display scenes on the large screen; in terms of media e-commerce,
IPTV and OTT channels are expanded to create e-commerce live broadcast format; and in terms of outbound call, the private IP is
built to release commodity information to target groups.
(2) With the advantages of its long video content, the Company launches a vertical content e-commerce platform “XIAOMANG”
for the Z era, using contents as a basis to evoke resonance and further create demands, thus stimulating consumption. Through the
content creation sharing based on short videos and the e-commerce shopping platform featured by sharing and recommendation, a
new video content e-commerce mode with “video + content + e-commerce” as the core is formed.
4. Other business
Relying on the content production matrix and internet TV license, the Company continues to cooperate with intelligent hardware
manufacturers, and precisely participates in the innovative R&D, design and production of intelligent hardware based on 5G, AI,
VR/AR, Ultra HD, and other new technology applications.
(II) About the Industry
1. The outline of the national development plan clearly emphasizes the continuous promotion of in-depth media convergence
In June 2020, the Central Committee for Deepening Overall Reform passed a new round of reform plan, requiring continuing
the intensified reform of state-owned enterprises and deepen the promotion of media convergence. In September, the General Office
of the CPC Central Committee and the General Office of the State Council issued the Opinions on Accelerating the In-depth Media
Convergence and Development with a notice to clarify the overall requirements for the in-depth media convergence and development
to optimize the allocation of resources with internet thinking and give full play to the main force in an all-round way, and stress that
party committees and governments at all levels should strengthen the guarantee of funds and policies to support the in-depth
convergence and development of media. In November, the National Radio and Television Administration issued the Opinions on
Accelerating the In-depth Convergence and Development of Radio and Television Media, pointing out that in order to speed up the
reform of deepening system and mechanism, it is encouraged to support radio and television institutions to hold or participate in
internet and technology enterprises. In March 2021, the “fourteenth five-year plan” of the State was officially released, further
emphasizing the promotion of in-depth media convergence and improvement of new mainstream media.
2. High-loyalty individuals become the main driving force for the online video development, and the platform is actively
constructing a multi-level membership system
According to the QuestMobile data, in 2020 the penetration of online video users exceeds 75%, and the average monthly per
capita usage duration of pan-entertainment users increases by more than 13% year on year. High-loyalty individuals become the main
driving force for the industry development, and the growth rate of vertical video platforms exceeds the average level of the industry.
Each platform actively seeks to change the traditional “bulk-cheap” strategy by increasing the benchmark price for platform members
and decreasing the promotion for members. While speeding up the refinement of content and enhancing the originality and
self-making, the Company is constantly innovating and diversifying the payment methods, with the mode of preview screening for
members and video-on-demand after payment for a single drama becoming a new normal in the industry; continues to boost the
platforms to build multi-level and refined member price and service operation systems, so as to keep pace with the increasingly rich
content needs and viewing habits of different customer groups; and builds a more diversified and reasonable membership system, to
further facilitate the expansion of revenue sources for video platforms, so as to achieve long-term sustainable development.
3. Branding, digitization and precision become the core competitiveness in the advertising market
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2020 Annual Report of Mango Excellent Media Co., Ltd.
According to the CTR Market Research Report, the advertising market continued to differentiate throughout the year, with the
growth rate of internet brand advertising exceeding that of traditional leading industries, and the internet platforms having high traffic
and strong transformation ability becoming popular among advertisers. Relying on independent broadcast control platforms, creative
content production capacity, matrix advertising products, full chain after-sales service systems, global marketing channels and
digitally precise advertising abilities, main competitors show significant global advantages with respect to the actual effective
conversion rate in the terminal market, core customer loyalties, brand premium and ecological innovation and development, thus
obtaining the continuous appreciation by the market.
4. The supply-clearing of drama market maintains, and the proportion of self-made high-quality drama on video platform
increases
According to the data from the National Radio and Television Administration, 670 TV dramas with 23,500 episodes were
filmed, produced, and filed nationwide in 2020, 26% and 31.7% lower than the 905 TV dramas with 34,400 episodes in 2019
respectively. The risks and challenges faced by well-founded movie and TV companies are increasing, regulatory policies keep
intensifying to regulate movie and television content frauds and other issues, the number of movie and TV episodes is constantly
streamlined, and the multi-dimensional clearing of supply in the industry runs through the whole year, resulting in a main trend of
“reducing quantity and improving quality” and a mainstream consensus on best quality. The first-line movie and television
companies continue to show their competitive advantages by virtue of high-quality content production and stable financial situation.
In respect of the video platforms, by integrating content creativity, production, distribution, broadcast operation, member derivation,
advertising, marketing, and other key business segments, and further participating in the key links of the upstream and downstream
industries of movie and television drama production, the quantity of original self-made and high-quality drama is creased, raising
their proportions in the total constantly.
5. Content e-commerce keeps upgrading, and the platforms’ advantages of “brand promotion and sales efficiency” combined
marketing become prominent
The new e-commence competition involving video, content, personality, and social contact remains intense. By reconstructing
such elements as users, products and scenes, the new content e-commerce upgrades the simple “shopping environment” to “social +
shopping environment”, creates an immersive shopping experience by combining multiple scenes and digital technology, thus
improving the monetization efficiency of supply and demand. Each flow platform actively expands the new mode of e-commerce,
and widely cooperates with leading IP, creative contents, stars, artists and KOL talents to jointly innovate the new generation of
e-commerce channels with short and medium contents, IP derivatives and live-streaming sales, among others. With the industrial
closed-loop building capability of complete product R&D, content creativity, and “brand promotion and sales efficiency” combined
marketing, the internet platforms have significant advantages in the new round of content e-commerce competition.
6. The two-way integration of long and short videos is intensified, and the vertical competition is upgraded
The traffic competition among platforms focusing on contents becomes fiercer. The two-way penetration of long and short
videos and the multi-dimensional integration are accelerated, with the “long-short linkage” becoming the industry norm. High quality
variety shows, dramas and other professional content products are still the core competitiveness in the long video industry. Relying
on high-quality copyright and self-made content, the long video platforms accelerate the upgrade of content and users, continue to
launch innovative short and medium video services, strengthen the traffic support and business incentives for UP in various fields,
and seek to improve their own PUGC ecosystem, with the purpose to actively create a compound content ecology and diversified
derivative business model. The short video platforms show more intensive multi-dimensional competition with respect to contents,
traffics and users, by continuing to expand the layout of professional content fields such as movies, movie and TV dramas, mi cro
variety shows, short plays and music libraries, accelerating the improvement of traffic commercialization operation efficiency, and
upgrading and improving the user value realization mode around “short video + e-commerce”.
7. The distribution of digital copyrights and cross-platform contents is regulated, and the crackdown on copyright infringement
is intensified with the joint efforts of the content industry
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2020 Annual Report of Mango Excellent Media Co., Ltd.
The protection of content keeps improving. Meanwhile, the distribution of cross-platform and cross-terminal video and audio
contents, as well as the establishment of digital copyrights management system standards continue to be strengthened. In order to
further implement the new requirements for the media convergence and development, ultra HD TV, 5G applications and other fields,
the National Radio and Television Administration officially released the Management Standard System on Digital Copyrights for
Video and Audio Content Distribution in February 2021, covering cable digital TV, IPTV, internet TV and internet video, among
other business fields, further regulating the digital copyrights protection in the process of video and audio content distribution,
terminal receiving and broadcasting, and terminal-to-terminal transmission. The crackdown efforts and coverage on UGC and short
video copyrights infringements continue to increase, in which scenario the popular TV dramas, variety shows, cinema movies and
other long video content products become the main force of rights protection. On the one hand, the forms of short video copyright
infringement are diversified and complicated. On the other hand, the improvement of platform review, real-time monitoring, nature
identification, right confirmation and protection, supervision, and protection in response to all kinds of infringement are sped up. In
April 2021, more than 70 movie and television media entities and enterprises issued a joint statement on the protection of movie and
television copyrights, indicating that they would initiate centralized and necessary legal actions against the public account producers
and operators for their unauthorized editing, cutting, transferring and communicating of movie and television works, and meanwhile
calling for the producers and operators of short video platforms and public accounts to enhance the awareness of copyright
protection.
8. The market share of IPTV continues to rise, the industry standards are regulated, and the brand building is accelerated
According to the Ministry of Industry and Information Technology of the PRC, by the end of 2020, the three leading operators
had 484 million broadband access users and 315 million IPTV users, a net increase of 21.2 million in the whole year, and an IPTV
business revenue of RMB33.5 billion, an increase of 13.6% compared with that in 2019. In 2020, the revenue from fixed value-added
telecom services based on IPTV, cloud computing and big data increases by 26.9% compared with that in 2019, representing a
year-on-year growth rate of 5.7%, with a revenue growth contribution rate of 79.1%. Additionally, new industry standards,
represented by the Specification of Interfaces for User “Double Authentication and Accounting” for Both IPTV Integrated Playout
Management Platform and Transmission System issued by the National Radio and Television Administration, are being rolled out,
further upgrading, and improving the management on the development of radio and television as well as network audio-visual
industry. With the constant expansion of the IPTV market and its value highlights, the brand construction of IPTV platforms around
the world has accelerated, promoting the simultaneous improvement of industry content, experience, and service quality.
II. Significant changes in major assets
1. Significant changes in major assets
Major assets Explanation on significant changes
The long-term equity investments decreased by RMB187.5532 million at the end of the
Equity assets period compared with the beginning of the period, mainly due to the transfer of 40%
equity in Malanshan Cultural and Creative Investment Co., Ltd..
The fixed assets increased by RMB6.3181 million at the end of the period compared with
Fixed assets the beginning of the period, mainly due to the purchase of machinery and equipment,
electronic equipment, and other fixed assets in the current period.
The intangible assets increased by RMB1,043.3764 million at the end of the period
Intangible assets compared with the beginning of the period, mainly due to the increase in the reserve of
purchasing copyright resources.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
The prepayments increased by RMB270.616 million at the end of the period compared
Prepayments with the beginning of the period, mainly due to the increase in prepayments for copyright
purchase and investments in movie and TV dramas.
The contract assets increased by RMB244.5826 million at the end of the period
Contract assets compared with the beginning of the period, mainly due to the expansion of operator
business scale.
2. Major overseas assets
□ Applicable √ N/A
III. Analysis of core competence
1. The advantages for the main platform involving in-depth media convergence and development
On August 18, 2014, the fourth meeting of the Central Committee for Deepening Overall Reform was held under the presiding
of the General Secretary Mr. XI Jinping, at which the Guiding Opinions on Promoting the Convergence and Development of
Traditional Media and New Media was deliberated and adopted. The media convergence and development has become a focus of the
national strategy. Since then, the CPC and the State have made multiple deployments for the media convergence and development; in
September 2020, the General Office of the CPC Central Committee and the General Office of the State Council issued the Opinions
on Facilitating the Promotion of In-depth Media Convergence and Development, putting forward further requirements and giving
policy supports for promoting the in-depth media convergence and development. As a state-owned enterprise of party media, the
Company is bound to become the main platform for in-depth media convergence and development, give full play to its dominant role,
and accordingly get more policy supports; meanwhile, in light of its rich experience in content control and value orientation, etc., it
has generated the main platform advantages in the in-depth media deep convergence and development.
2. Ecological advantages of Mango based on dual-platform linkage development
In order to further promote the in-depth media convergence and development, as the new mainstream media of Hunan
Broadcasting System, the Company has, relying on the Mango ecology, formed a dual-platform linkage advantage with Hunan
Broadcasting System's traditional media. By actively exploring and promoting the co-creation and sharing mechanism of dual
platforms, fully opening up the field of content creation, jointly increasing content innovation and improving product cluster links,
the Company is expected to normalize the popular content products that meet the value orientation and market demand, so as to lay a
solid foundation to continuously create the new mainstream media group with strong communication, guidance, influence, and
credibility.
3. Advantages of innovation mechanism taking “Innovation or Death” as the idea
The Company follows the innovation principle of Hunan Broadcasting System, always adhering to the innovative concept of
“Innovation or Death”. It kept giving full play to the team vitality and activating the innovation power through the establishment of
an incentive mechanism for open innovation, the vigorous implementation of the studio system, the creation of a good external
environment for employees’ innovation, and the provision of sufficient resource allocation, while disclosing the innovation risks;
built a platform for employees to actively participate in innovation and creative activities through the organization of strategic
seminars, “Mango Youth Talk” and other activities; constantly improved the innovative talent reserve system and echelon
construction system through the implementation of “Mango Youth CEO Club”, “Green Mango Plan” and other youth training
programs; and accurately grasped the development trend of the industry as well as prospectively arranged new technologies and
businesses in the face of the rapid technological progress to construct strategic innovation advantages.
4. Advantages of systematic self-production content enabled by middle ground
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Based on its own strong content production team, and adhering to the strategy of “locking core production factors and creating
high threshold long videos”, the Company has established a unique self-made content production system; and by building a smart
middle ground, reconstructing the standardized linkage mechanism in the evaluation, operation, product and technology, etc., of
content production, and in light of the AI technology application, it has effectively improved the level of large-scale collaboration
among various parts to minimize the costs and controls the risks, thus freeing the content team for their focusing on innovation,
thereby forming the Company’s self-made content production advantages. It is under the support of this standardized self-made
content production system that the Company launched more than 40 self-made variety shows throughout the year.
5. Advantages of differentiated user positioning of “youth, city and women”
With the unique content strategy, the Company adheres to the platform user positioning of “youth, city and women”, ensuring
the connection and high coincidence among clear user groups, accurate content products and advertisers. Overall, the Mango TV
users have distinctive profiles such as “vitality, fashion and high quality”, the female users accounting for a higher proportion than
the industry level. The definite user profiles and platform positioning has strengthened the Company’s unique advantages in t he
multi-channel and multi-way release of content IP composite value, as well as the construction of member-fan combined operation
system. On this basis, the Company keeps attracting more diverse users through the rich content matrix.
6. Advantages of ecological “moat” in the coordinated development of the whole upstream and downstream industrial chain
Taking the advantages of content production, the Company continues to build a new media ecological closed-loop around the
whole upstream and downstream industry chain of the media internet: the upstream mainly includes artist agency, variety show as
well as movie and TV production businesses; the midstream relies on strong content self-making ability and high-quality content
product matrix to conduct multi-channel content operation and distribution through internet video platforms; the downstream focuses
on the IP classification, adaptation and development around Mango series, and form a new video content e-commerce mode with
“video + content + e-commerce” as the core based on the content, so as to realize multi-channel derivative realization online and
offline. With strong synergy and complementarity, each part of the industry chain joins together to form an integral and unique
ecological “moat” for the whole industry chain of Mango in the context of media convergence.
7. Full terminal linkage advantages of “one cloud for multiple screens” supported by multiple licenses
Mango TV is the only competitive market player in the internet video industry with IPTV and OTT business licenses at the
same time. The smart large screen business has covered 31 provincial administrative regions such as Hunan, Jiangsu, and Zhejiang,
which is of importance to support the Company’s layout of 5G and smart economy. Relying on the advantages of complete licenses,
the Company has had its audio-visual business covering all terminals including mobile phone, PAD, PC, TV, IPTV and OTT, being
the first video media in the industry to truly realize “one cloud for multiple screens”.
8. Benign business model of sustainable development
Based on the accurate user positioning, strong content self-making ability, refined member operation system and advertising
marketing system with combination of brand promotion and sales efficiency, the Company has been able to greatly improve the
operation efficiency of membership and advertising businesses, increase the operating income, and establish an industry-leading and
unique benign business model while effectively controlling the costs, especially the costs of content production, thus becoming the
only market player in the online video industry to make and maintain profitability.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section IV Discussion and Analysis of Business Conditions
I. Overview
In 2020, under the background of deep industrial reform and COVID-19 outbreak control normalization, the Company always
shouldered its mission to lead the in-depth media convergence and development. By strengthening the strategic orientation, closely
focusing on the high-quality development of the listed company, attaching great importance to the content with the high threshold
long video as the core business strategy, and continuously giving full play to its advantages in content self-making, it repeatedly
outperformed others in content innovation. Meanwhile, the operation efficiency of Mango TV was improved steadily, and the
revenue structure was optimized for the coordinated development of upstream and downstream businesses in the whole industry
chain. During the Reporting Period, the Company had a total operating income of RMB 14,005.5350 million, a year-on-year increase
of 12.04%; and a net profit attributable to the shareholders of the listed company of RMB 1,982.1595 million, a year-on-year increase
of 71.42%. Mango TV membership, advertising, operators, and other businesses kept growing in a steady and rapid manner. Happy
Sunshine, another operating entity, had an operating income of RMB 10.003 billion, a year-on-year increase of 23.36%, and a net
profit of RMB 1.775 billion, a year-on-year increase of 83.17%.
Operating Income of Mango Excellent Media (In: RMB0.1 billion)
1. Keep in mind the mission of the party media and insist on the lead of the main force
The Company always adhered to the principle of innovation by constant creation of high-quality content, and expanded the
mainstream force to firmly keep its leading position in the mainstream publicity. In terms of grand theme publicity: the special
reports on major events such as the “Two Sessions” and the 70th anniversary of the founding of the PRC were successfully
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2020 Annual Report of Mango Excellent Media Co., Ltd.
completed, which were highly appreciated by competent authorities at all levels; during the outbreak, the first-level response to the
control and containment propaganda was initiated at the first time whereupon the Mango TV launched COVID-19 Control and
Containment, a large-scale convergence media topic, and Will Win One Day, a short play acting against the outbreak, in which
touching stories of the first line anti-outbreak heroes were shown to pay high respect to the medical staff. In terms of news films,
youth elements were particularly integrated into the works to endow the main themes with more vitality and further realize the
efficient dissemination of mainstream values: Picturesque Battle Flag told the stories of Chinese soldiers’ dedication to the country,
inspiring young groups to “pay homage to Chinese soldiers”; Flowering Pomegranate 2 focused on poverty alleviation, telling the
stories of all ethnic groups working together for common development; CHINA summarized the context of Chinese history to deeply
explore the source of strength for the great rejuvenation of the Chinese nation; The Day I Ran China which told China stories in an
unique perspective to represent the image of China in the new era won the 30th “China News Award”. In terms of major literary and
artistic projects: A LAND SO RICH IN BUAUTY praised poverty alleviation to attract concerns of the young to rural issues; Be
Steeled in Repeated Struggles reproduced the glorious history of the Communist Party of China in a freehand way; and Ideal Shining
China focused on the historic leap of the Communist Party of China in leading the Chinese people to stand up, get rich and be strong,
drawing a grand picture of the party history in the past 100 years. In terms of promoting international communication, the
international APP of Mango TV sought to tell sound Chinese stories and spread sound Chinese voices, having recommended more
than 100 high-quality Chinese cultural documentaries in 18 languages, with its overseas business services covering more than 195
countries and regions around the world, thereby to keep building a new open and diversified international communication system,
which won the “China - ASEAN Excellent Communication Case” award in 2020.
2. Enrich the program matrix and actively build own long video ecology
In terms of variety shows, during the Reporting Period, Mango TV launched more than 40 self-made variety shows, with
excellent performance of newly created programs and continuous upgrading of N-generation variety shows to continue the building
of a firm “moat” for contents: Sisters Who Brave Winds and Waves spreads the positive energy of being brave through the struggles
of young ladies, and presents the new-era women’s encouragement, value building and beauty at their thirties, which has become a
phenomenal innovation program leading the trend; such innovative variety shows as Welcome Back to Sound, Lady Land and Listen
Up, and such N-generation variety shows as GREAT ESCAPT (Season II), Meeting Mr. Right (Season III) and Viva La Romance
(Season IV) have been popular and highly appraised. In terms of drama, the Company adhered to the two-pronged development
strategy of self-built studio and external strategic studio, based on which Mango TV has made every endeavor to build an
independent and self-control movie and television production system with 12 movie and television production teams and 30 strategic
studios under the “New Mango Plan” as the core productivity, gradually building a high-quality, benign and sustainable self-drama
content ecology. During the Reporting Period, Mango TV launched a total of 57 key movie and TV dramas: Find Yourself conveys
the infinite positive life concept and creates happiness during the outbreak; Go Ahead interprets that family members will make each
other better; Fearless Whispers, a realistic era drama produced by Mango Studios has been broadcast on CCTV-8, Mango TV and
other network platforms at the same time, ranking the first in the ratings for 25 consecutive days; and Living Toward the Sun,
produced by Mango Entertainment, was premiered on Hunan Satellite TV Channel and broadcast alone on Mango TV, ranking the
first as to the premiere in the provincial satellite TV network.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
3. Strengthen the middle ground empowerment and promote the iterative upgrade of platform operation
The Company strengthened the construction of smart middle ground, transformed the organization management, and improved
the business process quality and efficiency, with all business sectors of multi-screen integration, advertising, member and operator
joining each other to make efforts. In terms of membership business, the Company, based on a deep study on the membership rights
and interests, implemented the “3rd Youth Mango Festival” for the upgrade of “cultural + city” brand and introduced special
programs for high-quality IP members; the revenue from membership business has been promoted by implementing the diversified
payment policy for contents , the proportion of member life cycle and health types being steadily increased; more diverse users have
been obtained by enriching the content matrix, with the male user preference (TGI) up to 124% for the self-made drama Stage
Builder. By the end of 2020, the number of effective members of Mango TV reached 36.13 million, an increase of 96.68% over the
end of 2019. During the Reporting Period, the income from membership reached RMB3.255 billion, an increase of 92% over the
same period of last year. In terms of advertising business, on the basis of safeguarding high-quality content of Mango TV, new
marketing mode was actively explored to excavate the program advertising value and widen the cooperation space for advertising
with brand promotion and sales efficiency: Sisters Who Brave Winds and Waves has attracted investment that breaks many records
with more than 40 program advertisers; Find Yourself has created a new high of drama-related advertising investment; and the
customized variety shows have created a new mode of “live + variety show”, excavating more than 40 advertisers. During the
Reporting Period, the income from advertising reached RMB4.139 billion, a year-on-year increase of 24%. In terms of operator
business, the Company broke through the existing cooperation mode, expanded the scale of channel revenue, and focused on
improving the revenue volume of single province, and through the multi-dimensional interaction of “contents + members + activities
+ brands”, explored the innovation of local content and vertical fields, with the income from operator reaching RMB1.667 billion, up
31% year on year, during the Reporting Period.
4. Promote ecological collaboration and continue to build the whole media industrial links
Around Mango TV, the Company kept building the industrial links such as media retail, artist agency, music copyright, game,
and IP derivative development. As of the end of the Reporting Period, there were a total of 163 contractual artists including such
well-known ones as YANG Shuo, HUANG Shengyi and YUAN Yonglin who were newly come in EE-Media, Happy Sunshine,
Mango Entertainment and Mango Studios subordinated to the Company. There were nearly 1,400 songs in EE-Media record and film
music library. HUA Chenyu’s album New World had a total sales volume of exceeding 1.73 million, winning the sales champion in
Netease CloudMusic for 2020. During the Reporting Period, Mango TV launched more than 100 kinds of stand-alone, online games
and H5 games; the e-sport channel has begun to take shape, with its own video content of exclusive copyright for 5,000 hours, the
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2020 Annual Report of Mango Excellent Media Co., Ltd.
user scale of the e-sport channel IPTV in Hunan Province has maintained a rapid growth, and the e-sport channel products outside the
province have covered 14 provinces. In terms of media retail: the TV shopping business actively compressed the market with low
output efficiency, focused on the profitable market, and continued to expand the IPTV + OTT channel; the outbound call business
was upgraded, and more focus has been put on the core member operation. The “Mango Poverty Alleviation Cloud Supermarket” has
been built, covering 41 counties and cities in Hunan Province, which was selected by the New Media Professional Committee of
ACJA into the “Top Ten Outstanding Cases of Poverty Alleviation by China’s New Media in 2020”.
5. Optimize the structure of talents and construct the person-post matching mechanism in selecting, employing, and appointing
The Company kept improving the open and innovative incentive mechanism and distinctive refresh mechanism by giving full
play to talent vitality through strengthening talent reserve and echelon construction and enriching more young and middle-aged
talents who were familiar with new media to key positions. On the one hand, the advantages of creative talents were consolidated, the
existing talent team was transformed and upgraded during which the business backbones were transformed to project leaders and
product managers taking the project as the guide, the evaluation echelon rewards were clarified, super studios were upgraded, and a
completely new outlook of team was encouraged to maximize the team creativity. As of the end of the Reporting Period, Mango TV
had a total of 20 variety show teams, 12 movie and television drama production teams and 30 strategic cooperation studios, and has
established multi-dimensional studios to cover music, directing and vision. On the other hand, the training and introduction of talents
were strengthened by quick supplement of new media and technical talents in such fields as software engineering, product research
and development, data operation and maintenance to make up for the shortage of professional talents.
6. Incubate new business forms and explore new ways of high-quality development
In June 2020, the Company held a strategic seminar with the theme of “Let the youth ride the wind and waves”, deeply
discussing the Company’s strategy from the aspects of content innovation, operation management, commercialization, capital
operation, new products, new technology and new racetracks, among others. In the second half of 2020, the Company made every
effort to promote the launching and implementation of the key new racetracks and products discussed in the said seminar. The
“Mango Monsoon” plan was initiated to innovate the production and business operation mode of TV series, reconstruct the
production system of Mango TV series, and create the first weekly broadcasting theater linking TV and network. Meanwhile,
“XIAOMANG” APP was launched to explore and build vertical communities in respects of “great escape”, “fashion” and “cute pet”,
etc. and give full play to the Company’s advantages in IP creativity, thus forming a brand-new e-commerce model for video “content
+ social contact” around “video + content + e-commerce”. Through pioneering a new track and exploring a new growth for business
development, the Company has created a Mango ecosystem with richer connotations.
7. Explore technological innovation to drive the in-depth media convergence and development
During the Reporting Period, the Company actively explored the integration of content and technology, integrating new
technology into the whole process of content production, dissemination, and service. A Mango holographic light field system has
been build with the first 4K light field shed in China, applying the dynamic holographic light field acquisition system to special effect
production of program and automatic dynamic 3D modeling, among others. A Mango VR system has been developed to explore VR
innovation on suspenseful and mentally absorbing topics such as GREAT ESCAPT, and conduct research on VR interaction. Besides,
the Company made efforts to develop an interactive drama production platform, actively participated in the formulation of national
industry standards, and launched the interactive derivative micro drama TARGET PERSON corresponding to Who's the Murderer,
with the score of 8.7 on Douban. Mango TV hosted the first “Malanshan Cup” international audio and video algorithm optimization
competition, during which nearly 1,300 teams of algorithm elites from more than 20 countries and regions gathered in Malanshan to
raise the technology in respects of image, picture quality and recommendation to the leading level in the industry. Five of the top 10
winners of the said competition have joined Mango TV to accelerate its development in algorithm. During the Reporting Period,
Mango TV was rated as one of the top 100 software and information technology service competitive enterprises of the 24th China
International Software Expo in 2020, ranking 20th among the top 100 internet enterprises of China in 2020.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
The Company is required to observe the disclosure requirements in No. 6 Guideline of Shenzhen Stock Exchange Regarding
Information Disclosure in Growth Enterprise Market Industry – Listing Company Engaged in Internet Video Business.
II. Analysis on principal activities
1. Overview
For relevant details, see “I. Overview” in the Section “Discussion and Analysis of Business Conditions” hereof.
2. Revenue and cost
(1) Composition of operating income
Overall description of operating income
In: RMB
2020 2019
Year-on-year
Proportion to Proportion to
Amount Amount increase or decrease
operating income operating income
Total operating
14,005,534,955.36 100% 12,500,664,232.05 100% 12.04%
income
By industry
Mango TV internet
9,060,568,867.27 64.69% 6,318,231,214.48 50.54% 43.40%
video business
New media
interactive
2,764,980,756.83 19.74% 3,902,187,958.57 31.22% -29.14%
entertainment
content production
Media retail 2,104,532,724.46 15.03% 2,007,314,831.02 16.06% 4.84%
Other principal
61,533,468.52 0.44% 56,234,849.86 0.45% 9.42%
businesses
Other business
13,919,138.28 0.10% 216,695,378.12 1.73% -93.58%
income
By product
Mango TV internet
9,060,568,867.27 64.69% 6,318,231,214.48 50.54% 43.40%
video business
New media
interactive
2,764,980,756.83 19.74% 3,902,187,958.57 31.22% -29.14%
entertainment
content production
Media retail 2,104,532,724.46 15.03% 2,007,314,831.02 16.06% 4.84%
Other principal 61,533,468.52 0.44% 56,234,849.86 0.45% 9.42%
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2020 Annual Report of Mango Excellent Media Co., Ltd.
businesses
Other business
13,919,138.28 0.10% 216,695,378.12 1.73% -93.58%
income
By region
Within Hunan 4,513,906,434.72 32.23% 4,354,887,302.09 34.84% 3.65%
Outside Hunan 9,491,628,520.64 67.77% 8,145,776,929.96 65.16% 16.52%
(2) Industries, products, or geographical areas having operating income or operating profit
accounting for more than 10% of that of the Company
√ Applicable □ N/A
In: RMB
Year-on-year Year-on-year Year-on-year
Gross profit increase or increase or increase or
Operating income Operating costs
margin decrease of decrease of decrease of gross
operating income operating costs profit margin
By industry
Mango TV
internet video 9,060,568,867.27 5,373,904,985.43 40.69% 43.40% 40.74% 1.12%
business
New media
interactive
entertainment 2,764,980,756.83 2,146,888,764.52 22.35% -29.14% -24.84% -4.45%
content
production
Media retail 2,104,532,724.46 1,676,380,697.52 20.34% 4.84% 14.12% -6.48%
Others 75,452,606.80 33,114,196.97 56.11% -72.35% -76.49% 7.73%
By product
Mango TV
internet video 9,060,568,867.27 5,373,904,985.43 40.69% 43.40% 40.74% 1.12%
business
New media
interactive
entertainment 2,764,980,756.83 2,146,888,764.52 22.35% -29.14% -24.84% -4.45%
content
production
Media retail 2,104,532,724.46 1,676,380,697.52 20.34% 4.84% 14.12% -6.48%
Others 75,452,606.80 33,114,196.97 56.11% -72.35% -76.49% 7.73%
By region
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Within Hunan 4,513,906,434.72 3,049,636,842.23 32.44% 3.65% -1.27% 3.37%
Outside Hunan 9,491,628,520.64 6,180,651,801.71 34.88% 16.52% 18.95% -1.33%
The Company’s principal business data in the most recent year that has been adjusted subject to the closing balance of the report as
there are certain adjustments on the statistical data of the Company's principal businesses in the Reporting Period.
□ Applicable √ N/A
(3) Whether the Company’s income from physical sales is greater than its labor income
□ Yes √ No
(4) Performance of significant sales contracts concluded by the Company as of the Reporting
Period
□ Applicable √ N/A
(5) Composition of operating costs
By industry
In: RMB
2020 2019 Year-on-year
By industry Item Proportion to Proportion to increase or
Amount Amount
operating costs operating costs decrease
Mango TV
Internet video
internet video 4,841,068,825.32 52.45% 3,399,238,963.61 41.03% 42.42%
business
business
Mango TV
internet video Operator business 532,836,160.11 5.77% 419,175,433.87 5.06% 27.12%
business
New media
interactive
Copyright and
entertainment 1,980,061,842.66 21.45% 2,616,039,876.07 31.58% -24.31%
production costs
content
production
New media
interactive Employee
entertainment benefits and 166,826,921.86 1.81% 240,425,514.40 2.90% -30.61%
content others
production
Media retail Media retail 1,676,380,697.52 18.16% 1,468,987,207.33 17.73% 14.12%
Other principal Other principal
26,844,714.41 0.29% 37,320,352.51 0.45% -28.07%
businesses businesses
Other business Other business 6,269,482.56 0.07% 103,553,601.63 1.25% -93.95%
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2020 Annual Report of Mango Excellent Media Co., Ltd.
costs costs
Explanation
None
(6) Whether there is any change in the scope of consolidation during the Reporting Period
□ Yes √ No
During the Reporting Period, Happy Sunshine Hongmang Education Technology Co., Ltd. and Xiaomang Electronic Commerce Co.,
Ltd. are newly established, while Doug (Shanghai) Investment Management Limited Liability Company, Ningbo Free Trade Zone
Happigo International Trade Co., Ltd. and Damei Fashion (Shanghai) Culture Media Co., Ltd. are deregistered. For details, see VIII.
Change in Scope of Consolidation in Section XII. Financial Report hereof.
(7) Descriptions of significant changes or adjustments on the Company’s businesses, products,
or services
□ Applicable √ N/A
(8) Major clients and suppliers
Major clients of the Company
Total sales of top 5 clients (in RMB) 4,968,532,823.01
Proportion of total sales from top 5 clients to total annual
35.48%
sales
Proportion of sales from the related parties among top 5
27.59%
clients to total annual sales
Information of top 5 clients of the Company
S.N. Name of client Sales (in RMB) Proportion to total annual sales
1 The First 3,038,207,506.39 21.69%
2 The Second 826,176,362.97 5.90%
3 The Third 451,961,458.28 3.23%
4 The Fourth 400,492,950.89 2.86%
5 The Fifth 251,694,544.48 1.80%
Total -- 4,968,532,823.01 35.48%
Other information of major clients of the Company
√ Applicable □ N/A
The client ranked first refers to Hunan Broadcasting System, the de facto controller of the Company, and its subsidiaries under its
control, with which the transaction are recorded in aggregation. The client ranked second refers to MIGU Culture Technology Co.
Ltd., a related party of the Company, and its subsidiaries under its control, with which the transaction are recorded in aggregation.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Major suppliers of the Company
Total purchase amount of top 5 suppliers (in RMB) 2,075,853,242.53
Proportion of total purchase amount of top 5 suppliers to
22.49%
total annual purchase amount
Proportion of the purchase amount of the related parties
13.11%
among top 5 suppliers to the total purchase amount
Information of top 5 suppliers of the Company
Proportion to total annual purchase
S.N. Name of supplier Purchase amount (in RMB)
amount
1 The First 1,210,045,246.96 13.11%
2 The Second 269,699,812.24 2.92%
3 The Third 226,415,094.34 2.45%
4 The Fourth 212,264,150.94 2.30%
5 The Fifth 157,428,938.05 1.71%
Total -- 2,075,853,242.53 22.49%
Other information of major suppliers of the Company
√ Applicable □ N/A
The supplier ranked first refers to Hunan Broadcasting System, the de facto controller of the Company, and its subsidiaries under its
control, with which the transaction are recorded in aggregation.
3. Expenses
In: RMB
Year-on-year
2020 2019 increase or Explanation on significant changes
decrease
Mainly caused by the increase in
promotion and advertising agency fees,
resulted from increased program
Selling expenses 2,164,415,269.87 2,140,684,155.45 1.11%
releases and advertising revenue, and
by the enhancement of marketing and
sale team incentives.
Mainly caused by the increase in
Administrative expenses 629,200,722.73 610,138,439.92 3.12%
human resources investment.
Mainly caused by the increase in
Financial expenses -86,619,854.07 -36,576,566.73
interest income.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Mainly caused by the increase of R&D
resources invested in cloud storage
Research and
184,384,948.72 239,299,331.86 -22.95% platform projects and the
development expenses
corresponding decrease of expensed
R&D expenditure.
4. Research and development expenditures
√ Applicable □ N/A
The Company aims to provide customers with more types of products for a better service by accelerating the company's technology
updates in products and business operations for keeping up with industry development trends and guaranteeing in-depth product
project research and development, so as to ensure that the Company is more competitive in the market with a broader channel and
space for performance growth.
Proportion of the Company’s R&D investments to the operating income in the past three years
2020 2019 2018
Number of R&D personnel
622 645 645
(person)
Proportion of number of R&D
13.91% 15.41% 15.49%
personnel
R&D investments (in RMB) 319,282,521.92 280,287,866.02 225,112,126.76
Proportion of R&D investments
2.28% 2.24% 2.33%
to operating income
Amount of R&D expenditure
134,897,573.20 40,988,534.16 4,556,241.12
capitalization (in RMB)
Proportion of R&D expenditure
capitalization to R&D 42.25% 14.62% 2.02%
investments
Proportion of R&D expenditure
capitalization to current net 6.82% 3.54% 0.49%
profit
Reasons for significant changes in the proportion of the Company’s R&D investments to the operating income
□ Applicable √ N/A
Reasons for significant changes in capitalization rate of R&D investments and the description of their rationality
√ Applicable □ N/A
During the Reporting Period, the Company made great efforts to promote the equity investment project concerning the construction
of Mango TV cloud storage and multi-screen broadcast platform, and the R&D expenditure of the project was capitalized. Given the
large scale of the project, the proportion of capitalized R&D expenditure in R&D investment increased.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
5. Cash flow
In: RMB
Year-on-year increase or
Item 2020 2019
decrease
Sub-total of cash inflows from
13,357,032,896.39 11,017,337,848.86 21.24%
operating activities
Sub-total of cash outflows from
12,776,062,543.31 10,724,471,137.68 19.13%
operating activities
Net cash flow from operating
580,970,353.08 292,866,711.18 98.37%
activities
Sub-total of cash inflows from
886,489,234.84 922,908,322.83 -3.95%
investing activities
Sub-total of cash outflows from
692,459,021.89 813,567,045.02 -14.89%
investing activities
Net cash flow from investing
194,030,212.95 109,341,277.81 77.45%
activities
Sub-total of cash inflows from
160,436,700.00 2,380,419,369.03 -93.26%
financing activities
Sub-total of cash outflows from
662,272,824.91 255,743,249.75 158.96%
financing activities
Net cash flow from financing
-501,836,124.91 2,124,676,119.28 -123.62%
activities
Net increase in cash and cash
273,387,984.85 2,526,488,344.91 -89.18%
equivalents
Explanations on main factors affecting significant differences between data compared on a year-on-year basis
√ Applicable □ N/A
The net cash flow from operating activities in the current period was RMB580.9704 million, an increase of 98.37%, mainly due to
the increase in cash received from sales of goods.
The net cash flow from investing activities in the current period was RMB194.0302 million, an increase of 77.45%, mainly due to the
increase in cash received from equity transfer in the Reporting Period.
The subtotal of cash inflow from financing activities in the period was RMB160.4367 million, a decrease of 93.26%, mainly due to
the decrease in cash received from loans in the current period and the availability of funds raised in the same period of last year.
The subtotal of cash outflow from financing activities in the current period was RMB662.2728 million, an increase of 158.96%,
mainly due to repayment of loans and distribution of dividends.
The net cash flow from financing activities was RMB-501.8361 million in the current period, a decrease of 123.62% compared with
RMB2,124.6761 million in the prior period, mainly due to the repayment of bank loans and the distribution of dividends in the
current period, as well as the availability of funds raised in the same period of last year.
29
2020 Annual Report of Mango Excellent Media Co., Ltd.
The net increase in cash and cash equivalents in the current period was RMB273.388 million, a decrease of 89.18%, mainly due to
the acquisition of matching financing funds in the same period of last year without such acquisition in this year.
Explanations on reasons for significant differences between the net cash flow from the Company’s operating activities during the
Reporting Period and the net profit for the year
√ Applicable □ N/A
This is mainly due to the cash outflow caused by the Company’s copyright reserves and substantial investment in movie and
television dramas during the Reporting Period.
III. Non-principal activities
√ Applicable □ N/A
In: RMB
Proportion to total
Amount Reasons Continual or not
profits
Mainly due to financial
management income and
Investment income 80,792,516.40 4.07% No
long-term equity investment
disposal income
Mainly due to the provision
Impairment of
-89,388,881.81 -4.50% for bad debts and inventory No
assets
impairment.
Non-operating Mainly due to income from
26,886,284.35 1.35% No
income safeguarding rights.
Mainly due to compensation
Non-operating expenditure, losses from
46,535,880.99 2.34% No
expenses outbreak containment and
donation expenditure.
IV. Assets and liabilities
1. Significant changes in asset composition
The Company adopted new revenue standards or new lease standards for the first time in 2020, with adjustments to the opening
balance of relevant items in the financial statements
Applicable
In: RMB
At the end of 2020 At the beginning of 2020
Increase
Proportion Proportion
or Explanation for significant changes
Amount to total Amount to total
decrease
assets assets
30
2020 Annual Report of Mango Excellent Media Co., Ltd.
Cash and bank Mainly due to the increase in sales
5,336,319,786.70 27.70% 5,064,224,581.46 29.65% -1.95%
balances receipts inflow.
Accounts Mainly due to the expansion of internet
2,976,696,672.95 15.45% 2,424,141,754.09 14.19% 1.26%
receivable video business scale.
Mainly due to the decrease in the
number of movie and TV dramas in
Inventories 1,660,324,608.09 8.62% 1,916,375,338.89 11.22% -2.60%
production at the end of the report
period.
Mainly due to the transfer of 40%
Long-term
equity in Malanshan Cultural and
equity 22,882,969.51 0.12% 210,436,179.18 1.23% -1.11%
Creative Investment Co., Ltd. during
investments
the Reporting Period.
Mainly due to the increase in fixed
assets such as machinery and
Fixed assets 186,924,296.25 0.97% 180,606,150.34 1.06% -0.09%
equipment, electronic equipment, etc.
purchased in the current period.
Mainly due to the decrease in bank
Short-time
39,789,110.68 0.21% 349,816,947.83 2.05% -1.84% credit loans in response to the needs of
borrowings
funds.
2. Assets and liabilities measured at fair value
□ Applicable √ N/A
3. Restricted asset rights as of the end of the Reporting Period
As of the end of the Reporting Period, the Company’s assets with restricted asset rights amounted to RMB21,856,300.00, in which
RMB21,625,200.00 were frozen due to litigation, RMB230,100.00 were used as third-party deposits, and RMB1,000 were used as
POS deposits.
V. Analysis on investment
1. Overview
√ Applicable □ N/A
Investments in the Reporting Period (in Investment of the same period in the
Change %
RMB) previous year
60,000,000.00 50,000,000.00 20.00%
2. Significant equity investments acquired during the Reporting Period
□ Applicable √ N/A
3. Significant non-equity investments proceeding during the Reporting Period
31
2020 Annual Report of Mango Excellent Media Co., Ltd.
□ Applicable √ N/A
4. Financial assets measured at fair value
□ Applicable √ N/A
5. Use of financing funds
√ Applicable □ N/A
(1) Overall introduction
√ Applicable □ N/A
In: RMB0'000
Proportion of
Total financing Total financing
total financing Financing
Total financing funds used funds Usage and
Total Total funds funds which
Financing funds whose usage is accumulatively Total financing whereabouts of
Year financing financing accumulatively have been idle
modes accumulatively changed within used whose funds not used total financing
funds funds used used whose for more than
used the reporting usage is funds not used
usage is two years
period changed
changed
Non- Deposited in
public the special
2019 198,270.07 94,438.71 94,651.01 0 0 0.00% 103,619.06 0
offering of account for
stocks financing funds
Total -- 198,270.07 94,438.71 94,651.01 0 0 0.00% 103,619.06 -- 0
Explanation for general use of financing funds
According to the Approval on Issuance of Shares by Happigo Inc. to Mango Media Co., Ltd. and Other Entities for Purchase of
Assets and Raising of Matching Funds (Zheng Jian Xu Ke [2018] No.999) issued by the China Securities Regulatory Commission
("CSRC"), and with the consent, the Company, through CICC as the lead underwriter, issued 57,257,371 shares of ordinary shares
(A shares) by private offering at an issue price of RMB34.93 per share, and actually raised matching funds of
RMB1,999,999,969.03 in total. After deduction of the underwriting fee (including tax) of RMB17,680,000.00, the funds raised was
RMB1,982,319,969.03 which was remitted by CICC to the Company’s financing fund escrow account on May 21, 2019. By
deducting other issuance expenses (including tax) such as the legal fees and capital verification fees amounting to RMB657,257.37
in total, and adding the deductible input tax of RMB1,037,957.96, the net funds raised was RMB1,982,700,669.62. Pan-China
Certified Public Accountants LLP audited has verified the availability of the corresponding financing funds and issued a Capital
Verification Report (Tian Jian Yan [2019] No. 2-16). The 23rd session of the third board of directors of the Company deliberated
and passed the Proposal on Using the Financing Funds for Capital Increase in the Subsidiary Implementing the Equity Investment
Project, whereby it is agreed the Company shall allocate the balance of the financing funds (including interest) amounting to
RMB1,983,911,813.91 as of June 30, 2019 in a lump sum to Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd.
(“Happy Sunshine Company”), a subsidiary to implement the equity investment project, for the construction of the “Mango TV
Copyright Library Expansion Project” and the “Mango TV Cloud Storage and Multi-screen Broadcast Platform Project”. On July
32
2020 Annual Report of Mango Excellent Media Co., Ltd.
11, 2019, the Company and Happy Sunshine, the subsidiary to implement the equity investment project, entered into a four-party
escrow agreement on the financing funds with the Bank of Changsha Dianguang Sub-branch, Huarong Xiangjiang Bank
Xiangjiang New Area Branch, and the independent financial consultant. In 2020, the Company actually used RMB944.3871
million among the financing funds, with a cumulative use of RMB946.5101 million. As of the end of 2020, the net interest received
from bank deposits with the deduction of bank service charges amounted to RMB46.6480 million. As of December 31, 2020, the
Company’s special account for offering projects had a balance of RMB1,082.8386 million (comprising RMB1,036.1906 million of
principal and RMB46.6480 million of interest).
(2) Committed items of financing funds
√ Applicable □ N/A
In: RMB0'000
Committed
investment
Investment Revenues Revenues
items and Change Total Investments Accumulative Date when Achieve Significantly
Total progress as of achieved accumulatively
investment items or not commitments within the investments as the items are expected change item
after-adjusted the end of the within the achieved as of
direction of (incl. partial of financing reporting of the end of ready for revenues or feasibility or
investments (1) period (3)＝ reporting the end of the
excess change) funds period the period (2) intended use not not
(2)/(1) period period
financing
funds
Committed investment items
1.
Mango
TV
56.20%Note 21,839.4
copyrigh No 148,674 148,674 83,550 83,550 1
21,839.47 N/A No
7
t library
expansio
n project
2.
Mango
TV
cloud
storage
and 10,888.7 Note 2
No 49,558 49,558 11,101.01 22.40% N/A No
multi-scr 1
een
broadcas
t
platform
project
Subtotal of 94,438.7 21,839.4
-- 198,232 198,232 94,651.01 -- -- 21,839.47 -- --
committed 1 7
33
2020 Annual Report of Mango Excellent Media Co., Ltd.
investment
items
Investment direction of excess financing funds
/
94,438.7 21,839.4
Total -- 198,232 198,232 94,651.01 -- -- 21,839.47 -- --
1 7
Mango TV Cloud Storage and Multi-screen Broadcast Platform Project: The project was duly planned in 2017 and
implemented in 2019 upon completion of the matching funds raising. Due to certain changes in the marker and
Failure to technological environments in the industry during the implementation, the Company adjusted the plan for using the funds
reach the upon receipt of the same by extending the fund use period to 2021, resulting a difference between the progress of the
expected actual use of the funds in the Reporting Period and the original plan for the use thereof. On April 23, 2020, the Company
progress or held the 29th meeting of the third board of directors, deliberating and approving the Proposal on Adjusting the Fund Use
revenues Plan for Some Investment Projects with Financing Funds, whereby to adjust the plan of using the funds for the Mango TV
and reasons cloud storage and multi-screen broadcast platform project. On January 26, 2021, the Company held the 35th meeting of
therefor the third board of directors, deliberating and approving the Proposal on Adjusting the Fund Use Plan for Some Investment
Projects with Financing Funds, adjusting the plan of using the funds for the Mango TV cloud storage and multi-screen
broadcast platform project.
Explanation
for
significant
/
changes to
item
feasibility
Amount, N/A
usage and
use progress
of excess
financing
funds
Changes to N/A
implementat
ion
locations of
investment
items of
financing
funds
Adjustment N/A
on
implementat
ion methods
of
34
2020 Annual Report of Mango Excellent Media Co., Ltd.
committed
items
Advance N/A
investment
of
committed
funds and
swap
Temporally N/A
using idle
funds raised
as working
capital
Balance of N/A
financing
funds in the
implementat
ion of items
and the
reasons
therefor
Usage and
whereabouts
The unused financing funds were all deposited in the special account for the financing funds to be used for subsequent
of unused
investment in committed items.
financing
funds
Problems
and other
matters
occurring in
/
the use and
disclosure
of financing
funds.
Note 1- Mango TV Copyright Library Expansion Project: As of December 31, 2020, the Company has completed the purchase and
launching of 5 annual key satellite TV dramas, the investment and construction progress proceeding as expected. The actual
investment therein is lower than the planned one, mainly because the price of a single episode of such TV dramas actually pur chased
by the Company has decreased compared with the previous forecast due to the content copyright price returning to rationality as a
result of policy changes in the industry.
Note 2 - Mango TV Cloud Storage and Multi-screen Broadcast Platform Project: Aiming at comprehensively improving the users’
all-platform viewing experience, the project did not directly generate economic benefits, and accordingly the benefits therefor cannot
be calculated separately.
35
2020 Annual Report of Mango Excellent Media Co., Ltd.
(3) Changes in financing funds
□ Applicable √ N/A
There is no change in financing funds during the Company’s Reporting Period.
VI. Disposal of major assets and equities
1. Disposal of major assets
□ Applicable √ N/A
No major assets were disposed by the Company during the reporting period
2. Disposal of major equities
√ Applicable □ N/A
Net
profit
Whether
contribu
Proporti the
ted by
on of implem
the
net ent
equity
profit proceed
to the
contribu ed as
listed Related Have all
Impact ted by planned;
Transact compan Pricing Is it a party the
of the the if not,
ion y from principl related relations equity Disclos
Counter Equity Date of sale on equity the Disclos
price the e of party hip with involve ure
party sold sale the sale to associat ure date
(RMB0’ beginni equity transacti the d been index
Compan the total ed
000) ng of sale on counter transferr
y net reasons
the party ed
profit of and the
current
the measure
period
listed s taken
to the
compan by the
date of
y Compan
sale
y
(RMB0’
000)
40 Improvi Publishe
equity ng the d at:
in efficienc www.cn
Mango
Malansh April y of Parent March info.co
Media 25,967. 6,986.4 Apprais
an 16, resource 3.52% Yes compan Yes Yes 18, m.cn;
Co., 92 7 al price
Cultural 2020 allocatio y 2020 Announ
Ltd.
and n which cement
Creative is Title:
Investm conduci Announ
36
2020 Annual Report of Mango Excellent Media Co., Ltd.
ent Co., ve to the cement
Ltd. Compan on
y’s Transfer
focus on of
the main Equity
activitie in
s Joint-sto
ck
Compan
y and
Related
Party
Transact
ions
VII. Analysis on companies which the Company controls or where the Company holds shares
√ Applicable □ N/A
Description of major subsidiaries and shareholding companies that affect more than 10% of the Company’s net profits
In: RMB
Principal Registered Operating Operating
Name Type Total assets Net assets Net profit
business capital income profit
Hunan Happy Internet video,
Sunshine operator
242,470,013. 14,414,311,9 7,585,980,15 10,003,418,3 1,775,612,50 1,774,508,05
Interactive Subsidiary business and
00 59.06 3.09 41.98 3.28 9.40
Entertainment content
Media Co., Ltd. operation
Happigo Co., 401,000,000. 922,763,445. 564,695,994. 2,119,393,86 11,945,182.5 14,290,415.3
Subsidiary Media retail
Ltd. 00 78 13 5.59 0 5
Artist agency,
program and
Shanghai movie and TV
90,000,000.0 979,117,598. 667,951,411. 720,405,395. 62,288,627.5 54,390,878.7
EE-Media Co., Subsidiary dramas
0 65 82 27 5 3
Ltd. production and
copyright
business
Mango Studios Movie and TV
80,000,000.0 1,333,051,20 350,229,784. 910,857,365. 68,702,883.7 68,702,883.7
Culture Co., Subsidiary dramas
0 6.95 90 37 7 7
Ltd. production
Programs,
Hunan Mango
movie and TV 48,306,424.0 1,261,568,96 331,472,172. 665,063,351. 84,094,351.7 80,267,532.8
Entertainment Subsidiary
dramas 0 9.27 44 96 1 1
Co., Ltd.
production and
37
2020 Annual Report of Mango Excellent Media Co., Ltd.
artist agency
Shanghai
Games and
Mangofun 72,968,014.0 371,199,881. 328,579,954. 146,201,916. 76,390,577.8 61,461,281.2
Subsidiary interactive
Technology Co., 0 96 84 76 2 9
marketing
Ltd.
Hunan Happy
Money Financing 300,000,000. 478,705,422. 303,479,002. 40,570,639.5
Subsidiary 3,485,652.23 3,529,029.51
Microfinance services 00 13 83 7
Co., Ltd.
Acquisition and disposal of subsidiaries during the Reporting Period
□ Applicable √ N/A
Description of major shareholding companies
During the Reporting Period, the business of Happy Sunshine, the operating entity of the Company’s main platform Mango TV,
continued to maintain rapid growth, with significant growth in advertising and membership revenue, and operating income and net
profits up 23.36% and 83.17% respectively.
VIII. Structured entities controlled by the Company
□ Applicable √ N/A
IX. Company development outlook
(I) Company development outlook
The year 2021 marks the centenary of the founding of the CPC and the beginning of the 14th Five-Year Plan. In context of the
new development stage, guided by the socialist ideology of XI Jinping’s new era with Chinese characteristics, and bearing in mind
the principles of the 19th National Congress of the CPC and the Second, Third, Fourth and Fifth Plenary Session of the 19th CPC
Central Committee, the Company will fulfill the mission and responsibilities of party media, give full play to the main force to build
the new mainstream media group, and make every endeavor to achieve innovation, development, integration and communication to
practically celebrate the 100th anniversary of the founding of the CPC.
1. Create an atmosphere for the education and study of party history, and gather powerful energy for entrepreneurship
The Company will thoroughly study and implement the principles of the important speech given by the General Secretary XI
Jinping at the conference on party history education and mobilization, conscientiously organize and carefully plan and carry out the
education of CPC history learning for the objectives of “in-depth understanding, self-confidence enhancement, moral
accomplishment and competence improvement” and “study the Party's history, understand its theories, do practical work and make
new advances”, strengthen the party spirit, and improve political standing and earnestly learn the party history to gather the powerful
energy of action and entrepreneurship for transferring the organizational advantages of the party media as a state-owned enterprise
into the Company’s competitive and development advantages. With an overarching view and a sense of responsibility for the state
and the times, the Company will be brave to make further great achievements in media construction and content innovation, actively
undertaking the historical mission of promoting the in-depth media convergence and development.
2. Give full play to the main force and seek to build a new mainstream media group
With the coming of the second half of in-depth media convergence, in accordance with the Opinions on Accelerating the
In-depth Media Convergence and Development issued by the CPC Central Committee and the General Office of the State Council ,
and in light of the practical experience in the process of promoting media convergence, Mango Excellent Media has found out the
ideas and measures to play a good second half, that is, to give full play to the main force, seek to build a new industry-leading
38
2020 Annual Report of Mango Excellent Media Co., Ltd.
mainstream media group with strong influence and competitiveness adapting to the development trend of the all-media era by
reducing the construction blueprint into practice according to: the party media attribute of integrity and innovation, the convergence
with matrix communication, the organization form of middle ground empowerment, the talent structure of the all-media era, the
product cluster with complete links, the leading application technology, and the open and cooperative operation ecology.
3. Build a good ecology of corporate governance for business development
While keeping revering the market, rule of law, specialized knowledge and investor, the Company will actively implement the
relevant requirements of the CSRC on carrying out the special actions on the governance of listed companies, conscientiously
conduct self-examination and self-correction, upgrade itself through rectification, and keep improving various internal control
systems to form a long-term mechanism for standardized governance. Close attention will be paid to the controlling shareholders,
directors, supervisors, and other key personnel to enhance their legal awareness, strengthen their bottom line thinking and improve
their ability to perform their duties, so as to give full play to their leading role in improving the corporate governance. In addition, the
Company will earnestly fulfill its obligation of information disclosure, improve the good communication mechanism between the
board of directors and investors, fully protect the investors’ right to know, and continuously improve the transparency of the
Company. It will also actively practice the equity culture, keep optimizing the mechanism of returns for investors, and share its
development achievements. A solid and in-depth corporate governance capacity will be built to guarantee the sustainable and steady
development of the Company in various businesses.
4. Actively practice the equity culture and constantly optimize the return mechanism of investors
A listed company will survive and thrive with the concurrent involvement of investors in the capital market, and can win the
recognition and respect of the market only by respecting and rewarding the investors. On the one hand, the Company will actively
practice the equity culture by properly conducting investor relationship management, actively understanding the demands of mi nority
investors, revering investors, and constantly optimizing the return mechanism of investors to be responsible listed company sticking
on principles. On the other hand, bearing in mind that achieving high-quality development is the best return to investors, the
Company will always adhere to the correct strategic direction around its principal activities to continuously improve its
comprehensive strength for high-quality development with the audio-visual content of Mango TV as the core, the industrial
derivation as the matrix, the content and technological innovation as the driving force, and the whole industry chain control and
ecological collaboration as the important channel.
5. Adhere to the strategy concerning long video content and explore the dual-platform innovation and sharing mechanism
Adhering to the core concept of focusing on the content and driving the platform development with content innovation, the
Company will, for the purpose of establishing a more efficient and self-consistent content ecosystem, continuously improve its
personnel training mechanism, content evaluation system, self-made production process, external innovation cooperation mechanism,
among others, and industrialized content production system with Mango characteristics, to win and consolidate the development
advantages with content strength. Meanwhile, it will actively implement the development strategy of in-depth media convergence to
continue the promotion of in-depth convergence between Mango TV as a new media platform and Hunan Satellite TV as a traditional
media platform, and actively explore and boost the dual-platform innovation and sharing mechanism to increase and give full play to
the advantages of the content innovation as well as stimulate the innovation potential of content-related talents for the constant
improvement of content quality and the expansion of production volume, thereby building a “moat” of competitive long video.
6. Steadily promote the implementation of new business forms and drive the iterative upgrade of “Mango Mode”
The Company will accelerate the planning and implementation of brand building in new fields and new business forms, extend
the industrial chain and enlarge the industrial value through high-value content service-oriented products. It will implement the
“Mango Monsoon Plan” by carrying out the dual-platform customization of TV series to create common brands, reconstruct the
production system of Mango movie and television dramas, and make “Mango Monsoon” a new brand in the industry. “XIAOMANG”
will keep moving forward and explore its internal sub-track according to the competitive advantage of long video content to form a
mature business model. Meanwhile, with long video as the core competitiveness, and relying on the open and cooperative operation
39
2020 Annual Report of Mango Excellent Media Co., Ltd.
ecology, the Company will continue to explore new business forms and models to form a more complete product cluster, shape a
well-known all-media brand and enrich the profit model for sustainable development.
(II) Potential risks and countermeasures
1. Macroeconomic fluctuation risks
The cultural media industry has a strong correlation with the macro economy. As one of the optional consumer industries, the
media industry is affected by many factors, such as the level of consumers’ actual disposable income, the structure of consumers’
income, the index of consumers’ confidence and the tendency of consumption. Under the influence of Sino-US trade war and
COVID-19 outbreak, the macroeconomic situation is complex and changeable, which may bring uncertainty to the Company’s
medium and long-term development. The Company will thus stick to the principal activities, continue to refine, and strengthen itself,
and adopt business strategies of steady development.
2. Policy supervision risks
The cultural media industry where the Company locates has a special ideological attribute, with policy supervision running
through the whole business process of the industry. There may be changes in the industrial regulatory policies thereby bringing
uncertainty to the Company’s business operation. The Company will carry out content production in strict accordance with the
requirements of industry regulations and policies, and establish a sound internal quality management and control mechanism to avoid
the risks from policies and regulations.
3. Industrial competition risks
The long video involved by the Company is in fierce competition, with each long video platform strengthening the content
self-making ability, the homogenization of content becoming more and more serious. The short video platforms have developed
rapidly to enter the long video field. The mutual penetration of long and short videos has intensified to change the industry pattern,
which poses great challenges to the Company’s business model and management level, and may have adverse effects on its market
share and profitability. The Company will, accordingly, improve its ability to run the long video, consolidate its own compet itive
advantage, and explore the layout of new business.
4. Business qualification risks
The Company is subject to specific business qualifications for relevant business operations. If the Company fails to timely
renew the relevant business qualifications, obtain new business qualification, and meet the latest requirements of the regulatory
authorities, an adverse effect will be resulted in its business development. The Company will thus strengthen the business
qualification management, properly communicate with the business qualification administrations, and handle the renewal of various
expired qualifications in a timely manner.
5. Movie and television production risks
(1) The risk of movie and television works failing to pass the examination. A TV series after production must be examined and
approved by the National Radio and Television Administration or its branch at the provincial level before it can be released. During
the movie and television drama production, the Company may be unable to have the drama filed, obtain production license, acquire
distribution license due to theme and other issues after production, or broadcast the same after acquiring the distribution license, etc.
In case of the foregoing, the Company’s operating performance will be affected. As such, the Company will carry out movie and
television production in strict accordance with the policy guidance of the State and the review process of competent authorities, and
plan the movie and television themes taking into account of both social and economic benefits.
(2) The risk of higher uncertainty exposed to the return on investment in movie and television business. As a kind of cultural
product, a movie and television work will depend on the subjective preference, life experience and public opinion environment,
among other factors, to determine the audience’s acceptance of it. It is highly uncertain as to the viewing effect of a movie and
television drama after its broadcasting. The investment in movie and television dramas is attached with such natural attributes as
large scale of single investment, long payback period of investment, direct connection between revenue and box office performances
40
2020 Annual Report of Mango Excellent Media Co., Ltd.
or ratings, and unpredictable market reaction. The return on investment has relatively high uncertainty. In response thereto, the
Company has established a scientific project pre-approval and approval system as well as set up a special evaluation department to
mitigate the risks associated with movie and television drama investment.
6. Technological innovation risks
With the continuous maturity and application of 5G, cloud computing, artificial intelligence, AR/VR and other technologies,
new business forms and models may appear, bringing new cultural and entertainment experience to users. The business remodeling
as a result of technological changes may have adverse effects on the Company’s operation. Accordingly, the Company has set up an
innovation research institute to strengthen the research on new technologies, new models and future industry trends and conduct
study, judgment, and layout ahead of time to respond to the risks of technological innovation with ease.
7. Brain drain risks
The Company’s new media business, movie and TV drama production and artist agency put forward high professional
requirements for practitioners. The professional and well-experienced talents are a valuable fortune of the Company, and their drain
will affect the normal conduct of business. Furthermore, the Company’s business will be adversely affected if it fails to continue
introduction of external talents. As such, the Company will create an ecosystem suitable for the talents to exert their abilities and
keep improving the competitive incentive mechanism to retain and attract talents and inspire creativity and vitality of key employees,
thus promoting its business growth.
8. Intellectual property infringement risks
Due to the complexity of the development of movie and television dramas as well as audio-visual products, the diversity of the
use of works, the rapid development of internet applications and the complexity of copyright protection, the copyrights purchased by
the Company may infringe on the interests of the legitimate owners due to defects, or the licenses purchased by the Company may
fail to cover the development and use of emerging businesses, resulting in the loss of compensation for infringement. In addition,
there are copyright infringements upon the legitimate rights and interests of the Company with respect to its exclusive movie and
television dramas as well as audio-visual products. To this end, the Company has established a copyright protection system and a
copyright procurement management system, and strengthened the protection of intellectual property rights to safeguard its legitimate
rights and interests through legal means.
X. Registration form of reception survey, communication, interviews, and other activities
1. Registration form of reception survey, communication, interviews, and other activities in the
Reporting Period
√ Applicable □ N/A
Type of
Reception Reception Reception Main content discussed
object in Object in reception Index of basic information
date place method and materials provided
reception
See the record form of See the record form of
investor relation investor relation activity
February
Online Telephone Institution activity of Mango of Mango Excellent http://www.cninfo.com.cn/
7, 2020
Excellent Media Co., Media Co., Ltd.
Ltd. (2020-01) (2020-01)
41
2020 Annual Report of Mango Excellent Media Co., Ltd.
See the record form of See the record form of
investor relation investor relation activity
April 28,
Online Telephone Institution activity of Mango of Mango Excellent http://www.cninfo.com.cn/
2020
Excellent Media Co., Media Co., Ltd.
Ltd. (2020-02) (2020-02)
Presentation of
April 30, performance briefing on
Online Others Others Investors http://rs.p5w.net
2020 the Company’s 2019
Annual Report
See the record form of See the record form of
Meeting
investor relation investor relation activity
August room of
Field Survey Institution activity of Mango of Mango Excellent http://www.cninfo.com.cn/
27, 2020 the
Excellent Media Co., Media Co., Ltd.
Company
Ltd. (2020-03) (2020-03)
Online collective
Septembe reception of listed
Online Others Others Investors http://rs.p5w.net
r 11, 2020 companies in Hunan
Province in 2020
42
2020 Annual Report of Mango Excellent Media Co., Ltd.
Section V Important Events
I. Dividend distribution for ordinary shares and capitalization of capital reserve
Policies of dividend distribution for ordinary shares during the Reporting Period, especially the development, implementation, or
adjustment of cash dividend distribution.
√ Applicable □ N/A
During the Reporting Period, the Company implemented the 2019 profit distribution plan as follows: an aggregate of
RMB178,037,751.1 as cash dividends are distributed to all shareholders at RMB1.00 (including tax) per 10 shares based on the total
share capital of 1,780,377,511 shares, with 0 bonus shares and 0 capitalized stock involved.
Special explanation for cash dividend policies
Do they comply with the provisions of the Company’s Articles of
Association or the requirements of the resolutions of general Yes
meeting of 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 play
Yes
their roles?
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 in 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 in 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
Number of bonus shares distributed for each 10
0
shares (unit: share)
Amount of dividends distributed for each 10
1.3
shares (in RMB) (including tax)
Number of shares transferred from capital reserve
0
per ten shares (unit: share)
Basic number of the share capital for the
1,780,377,511
distribution proposal
43
2020 Annual Report of Mango Excellent Media Co., Ltd.
Amount of cash dividends (in RMB) (including
231,449,076.43
tax)
Amount of cash dividends through other methods
0.00
(e.g., repurchase of shares) (in RMB)
Total cash dividends (including those distributed
231,449,076.43
through other methods) (in RMB)
Attributable profits (in RMB) 1,783,943,529.14
Proportion of total cash dividends (including those
distributed through other methods) to the total 100.00%
profits distributed
Cash dividends distributed this time
If the Company is at the growth period and has any major asset arrangement, then at the time of distribution of profits, its cash
dividends shall account for at least 20% of profits distributed this time.
Descriptions on proposal of profit distribution and capitalization of capital reserve
In accordance with the relevant provisions of the Notice of CSRC Concerning Further Implementation of Matters on Distribution of
Cash Dividends of Listed Companies, the No. 3 Regulatory Guideline for Listed Companies—Distribution of Cash Dividends of
Listed Companies and the Articles of Associations, through seeking opinions and demands from minority shareholders and
independent directors and in view of the Company’ actual situation, the Company intends to distribute to all shareholders the cash
dividends at RMB1.3 (including tax) per 10 shares, 0 bonus shares and 0 stock transferred from capital reserve per 10 shares based
on the total share capital of 1,780,377.51 shares, with the remaining undistributed profits to be carried forward to the following
year. Such proposal has been adopted at the 36th meeting of the third board of directors of the Company through deliberation, and
the independent directors have given their consent independently, pending deliberation by the general meeting of shareholders.
The Company’s dividend distribution plan (proposal) for ordinary shares and capital reserve capitalization plan (proposal) in recent
three years (including the Reporting Period)
1. 2020 profit distribution proposal: all shareholders will be paid cash dividends at RMB1.3 (including tax) per 10 shares and given 0
bonus shares based on the total share capital of 1,780,377.51 shares, and awarded with 0 additional stock per 10 shares in
consideration of the capital reserve, with the undistributed profits to be carried forward to the following year.
2. 2019 profit distribution plan: all shareholders will be paid cash dividends at RMB1.00 (including tax) per 10 shares and given 0
bonus shares based on the total share capital of 1,780,377,511 shares, and awarded with 0 additional stock per 10 shares in
consideration of the capital reserve, with the undistributed profits to be carried forward to the following year.
3. 2019 semi-annual capital reserve capitalization plan: all shareholders will be awarded with 7 shares per 10 shares based on the
total share capital of 1,047,280,889 shares, with corresponding consideration to be paid by the balance of capital reserve within the
scope of consolidated financial report, resulting in an aggregate of additional stock of 733,096,622 shares. Except the above share
awards, all shareholders will be paid with no bonus shares and cash dividends.
4. 2018 profit distribution plan: all shareholders will be paid cash dividends at RMB0.00 (including tax) and given 0 bonus shares
(including tax) per 10 shares based on the total share capital of 990,023,518 shares, and awarded with 0 additional stock per each 10
shares in consideration of the capital reserve, with the remaining undistributed profits to be carried forward to the following year.
Cash dividend distribution for ordinary shares of the Company in recent three years (including the Reporting Period)
In: RMB
44
2020 Annual Report of Mango Excellent Media Co., Ltd.
Proportion of total
Proportion of cash cash dividends
Proportion of cash dividends distributed
dividends distributed (including those
Net profit in the Total cash
distributed to net Cash dividends through other distributed
consolidated dividends
profit in the distributed methods to net through other
Cash dividends statements distributed
consolidated through other profit in the methods) to net
Year distributed attributable to (including those
statements methods (e.g., consolidated profit in the
(including tax) ordinary distributed
attributable to repurchase of statements consolidated
shareholders of through other
ordinary shares) attributable to statements
the listed company methods)
shareholders of ordinary attributable to
the listed company shareholders of ordinary
the listed company shareholders of
the listed company
1,982,159,476.
2020 231,449,076.43 11.68% 0.00 0.00% 231,449,076.43 11.68%
82
1,156,285,253.
2019 178,037,751.10 15.40% 0.00 0.00% 178,037,751.10 15.40%
73
2018 0.00 865,568,532.45 0.00% 0.00 0.00% 0.00 0.00%
The Company puts forward no proposal for cash dividend distribution of ordinary shares despite profitable and positive profits of its
parent company attributable to shareholders of ordinary shares during the Reporting Period
□ Applicable √ N/A
II. Performance of commitments
1. Commitments completed in the Reporting Period or not completed as of the end of the
Reporting Period by de facto controllers, shareholders, related parties, purchaser, the
Company, or others relating to commitments
√ Applicable □ N/A
Sources of
Promiser Type Content Date Deadline Performance
commitments
Commitments
made in the
Acquisition
Report or Equity
Change Report
1. Within thirty-six months of the
end of this offering, we will not
Commitments Commitm
transfer the listed company’s shares
made at the time Mango Media Co., ents on
acquired by us in this restructuring July 12, 2018 July 12, 2021 Outstanding
of assets Ltd. Share
in any form (including but not
restructuring Lock-up
limited to the public transfer
through securities market or
45
2020 Annual Report of Mango Excellent Media Co., Ltd.
transfer by agreement), nor will we
entrust others with management of
the listed company’s shares held by
us. Within six months of completion
of this restructuring, if the daily
closing price of the listed
company’s shares is lower than the
issue price for twenty consecutive
trading days, or the daily closing
price of the listed company’s shares
at the end of a six-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
extended for six months; 2. The
aforesaid share lock-up
arrangements shall also apply to the
increase in holdings of
consideration shares acquired by us
in this restructuring due to
placement of shares, bonus share
distribution and capitalization of
capital reserve by the listed
company and other reasons within
the lock-up period; 3. If the
aforesaid commitments on the
lock-up period are inconsistent with
the latest regulatory opinions issued
by the securities regulatory
authority, then we agree to make
adjustments accordingly pursuant to
the regulatory opinions issued by
the competent securities regulatory
authority; after the expiry of the
aforesaid lock-up period, the
relevant regulations of 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
46
2020 Annual Report of Mango Excellent Media Co., Ltd.
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.
1. Within twelve months of
completion of registration of
consideration shares involved by the
listed company’s issue of shares this
time to purchase assets (i.e. the date
when China Securities Depository
and Clearing Co., Ltd Shenzhen
Branch completes registration of
consideration shares), we will not
transfer the listed company’s shares
held by us as of the date when this
Letter of Commitments is issued 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
Mango Media Co., listed company’s shares above held
Commitments
Ltd.; and Hunan by us; 2.The aforesaid share lock-up
on Share July 12, 2018 July 12, 2019 Fulfilled
Hi-tech Investment arrangements shall also apply to the
Lock-up
Group Co., Ltd. increase in holdings of shares by us
due to placement of shares, bonus
share distribution and capitalization
of capital reserve by the listed
company and other reasons within
the aforesaid lock-up period; 3. If
the aforesaid commitments on share
lock-up arrangements are
inconsistent with the latest
regulatory opinions issued by the
securities regulatory authority, then
we agree to make adjustments
accordingly pursuant to the
regulatory opinions issued by the
competent securities regulatory
authority; after the expiry of the
aforesaid lock-up period, the shares
will be exercised pursuant to the
47
2020 Annual Report of Mango Excellent Media Co., Ltd.
relevant regulations of CSRC and
Shenzhen Stock Exchange.
Beijing Zhonghe 1. Within twelve months of the end
Dingyuan Equity of this offering, we will not transfer
Investment the listed company’s shares
Management Center acquired by us in this restructuring
(L.P.); Guangzhou in any form (including but not
Yuexiu Lichuang limited to the public transfer
No.3 Industrial through securities market or
Investment transfer by agreement), nor will we
Partnership (L.P.）; entrust others with management of
Hunan Mango the listed company’s shares held by
Haitong Creative us; 2. The aforesaid share lock-up
Cultural Investment arrangements shall also apply to the
Partnership (L.P.); increase in holdings of
Hunan Cultural consideration shares acquired by us
Creative Tourism in this restructuring due to
Venture Capital placement of shares, bonus share
Fund (L.P.); Jiantou distribution and capitalization of
Huawen Investment capital reserve by the listed
Co., Ltd.; Mango company and other reason within
Wenchuang the share lock-up period; 3. If the
Commitments
(Shanghai) Equity commitments on the aforesaid
on Share July 12, 2018 July 12, 2019 Fulfilled
Investment Fund lock-up period are inconsistent with
Lock-up
(L.P.); Shanghai the latest regulatory opinions issued
Guohe Modern by the securities regulatory
Service Industry authority, then we agree to make
Capital Fund (L.P.); adjustments accordingly pursuant to
Shanghai Huawei the regulatory opinions issued by
Equity Investment the competent securities regulatory
Fund (L.P.); authority; after the expiry of the
Shanghai Junyong aforesaid lock-up period, the
Investment relevant regulations of CSRC and
Management Co., Shenzhen Stock Exchange shall
Ltd.; Shanghai apply; 4. If we are suspected of
Lianxin Phase II providing or disclosing any
Equity Investment information containing
Center; Shenzhen misrepresentations, misleading
Guangda New statements or material omissions in
Entertainment this transaction and are therefore
Industry Fund investigated by the judicial
(L.P.); Tibet Taifu authority or the CSRC, we will not
Cultural Media Co., transfer the beneficial interest held
Ltd.; Xiamen C&D by us in the listed company before
48
2020 Annual Report of Mango Excellent Media Co., Ltd.
Emerging Industry the investigation conclusion of the
Equity Investment case is determined.
Co., Ltd.; Zhejiang
Chengzhang
Cultural Industry
Equity Investment
Fund (L.P.); and
Zhongnan Red
Cultural Group Co.,
Ltd.
Mango Media Co., Ltd. makes the
specific commitments as follows:
with respect to the net profit within
the earnings commitment period of
the target companies in this
restructuring including Hunan
Happy Sunshine Interactive
Entertainment Media Co., Ltd.
(“Happy Sunshine”), Shanghai
Mangofun Technology Co., Ltd.
(Mangofun), Shanghai EE-Media
Co., Ltd. (“E.E. Media”), Mango
Studios Culture Co., Ltd. (‘Mango
Studios“) and Hunan Mango
Entertainment Co., Ltd. (“Mango
Earnings
Entertainment”) (“net profit” refers
Commitment
Mango Media Co., to the net profit net of non-recurring December
and July 12, 2018 Ongoing
Ltd. profit or loss attributable to the 31, 2020
Compensation
owners of the parent companies of
Arrangement
target companies in each of the
target companies’ consolidated
statements): (1) the committed net
profit of Happy Sunshine is RMB
315,494,700.00 in 2017, RMB
679,457,800.00 in 2018, RMB
910,215,000.00 in 2019 and
1,293,696,000.00 in 2020; (2) the
committed net profit of Mangofun is
41,329,100.00 in 2017, RMB
50,708,100.00 in 2018, RMB
48,765,400.00 in 2019 and RMB
50,915,600.00 in 2020; (3) the
committed net profit of E.E. Media
is 95,486,200.00 in 2017, RMB
49
2020 Annual Report of Mango Excellent Media Co., Ltd.
20,874,600.00 in 2018, RMB
25,389,600.00 in 2019 and
28,444,100.00 in 2020; (4) the
committed net profit of Mango
Studios is RMB 41,503,900.00 in
2017, RMB 49,446,700.00 in 2018,
RMB 45,319,600.00 in 2019 and
RMB 46,880,700.00 in 2020; (5)
the committed net profit of Mango
Entertainment is 27,737,400.00 in
2017, RMB 74,513,000.00 in 2018,
RMB 64,329,100.00 in 2019 and
74,957,600.00 in 2020.
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 de facto controller
of the listed company, “1. We and
the channels and companies
Commitments controlled by us are not engaged in
on Avoiding any business or activity in any form
Hunan Broadcasting Horizontal that competes or would compete
System; and Mango Competition, with the business of the listed July 12, 2018 9999-12-31 Ongoing
Media Co., Ltd. Related-party company and/or its controlled
Transactions companies, directly or indirectly. 2.
and Fund Use 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 with the business
of the listed company and/or its
controlled companies, or holding
any interests or benefits in such
business; (2) supporting in any form
any other persons other than the
50
2020 Annual Report of Mango Excellent Media Co., Ltd.
listed company and/or its controlled
companies in engagement in any
business or activity that competes or
would compete with the business
being conducted or to be conducted
by the listed company and/or its
controlled companies. 3. If we and
the channels and companies
controlled by us have any
commercial opportunity to engage,
join or participate in any business or
activity that would compete with the
business of the listed company
and/or its controlled companies,
then the listed company and/or its
controlled companies will have a
priority with respect to the aforesaid
commercial opportunities. 4. If any
business of mine and the channels
and companies controlled by us
competes with that of the listed
company and its controlled
enterprise, then we and the channels
and companies 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
companies to avoid the horizonal
competition by stopping conduct of
the relevant competitive business,
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
companies due to breach of the
aforesaid commitments.”
Hunan Broadcasting Commitments “In order to reduce and regulate the
System; and Mango on Avoiding related-party transactions and July 12, 2018 9999-12-31 Ongoing
Media Co., Ltd. Horizontal safeguard the legal rights and
51
2020 Annual Report of Mango Excellent Media Co., Ltd.
Competition, interests of Happigo and minority
Related-party shareholders, Hunan Broadcasting
Transactionsan System and Mango Media have
d Fund Use 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
dealing with the related-party
transactions with the listed company
and its controlled companies 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
undertake that we will follow and
urge the channels and other public
institutions or economic
organizations controlled by us to
follow the principles of market
fairness, justice and openness,
legally sign agreements and perform
the legal procedures in accordance
with the provisions on the
decision-making and abstention of
related-party 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
52
2020 Annual Report of Mango Excellent Media Co., Ltd.
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.
A-share stocks non-publicly issued
by Mango Excellent Media Co.,
Ltd. this time that we acquire will
China Life Asset
not be transferred within twelve
Management
Commitments months from the date of the issue
Company Limited; May 30,
on Share completion, including but not May 30, 2019 Ongoing
and China Mobile 2020
Lock-up limited to the public transfer
Capital Holding Co.,
through securities market or the
Ltd.
transfer by agreement, unless
otherwise provided for in the laws
and regulations.
The Company’s controlling
shareholder Mango Media Co., Ltd.
(“Mango Media”) and its party
acting in concert Hunan Hi-tech
Investment Group Co., Ltd. make
the following commitments with
respect to circulation restrictions
Commitments
and voluntary lock-up: (1)within
made at the time
thirty-six months from the listing
of IPO or
date of the shares of the listed
re-financing Hunan Hi-tech
company, we will not transfer or
Investment Group
entrust others with management of
Co., Ltd.; Mango
any pre-IPO shares of the issuer
Media Co., Ltd.; and Commitments
held by us, nor propose the January 21, January 21,
No. 2 Account for on Share Fulfilled
repurchase of such shares by the 2015 2018
Accepted Shares of Stock-up
Company. (2) If, within six months
National Council for
of the listing of the issuer, the daily
Social Security
closing price of its shares is lower
Fund, PRC
than the issue price for 20
consecutive trading days, or the
daily closing price of the listed
company’s shares is lower than the
issue price at the end of a six-month
period of the listing (i.e. July 21,
2015, not the extended trading day),
then the lock-up period of the
issuer’ shares held by us will
automatically extended for six
53
2020 Annual Report of Mango Excellent Media Co., Ltd.
months. (3) If we reduce our
shareholdings within two years after
the expiry of lock-up period, the
reduction price will not be lower
than 100% of the issue price. If we
fail to fulfill these commitments, the
proceeds from reduction of
shareholdings in the Company will
belong to the Company. 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.
Hongyi Investment
Industry Phase I
Fund (Tianjin)
(L.P.); Mianyang
Science and
Within twelve months from the
Technology Industry
listing date of the issuer, we will not
Investment Fund
Commitments transfer or entrust others with
(L.P.); Tianjin January 21, January 21,
on Share management of any pre-IPO shares Fulfilled
Sequoia Capital 2015 2016
Stock-up of the issuer held by us, nor propose
Investment Fund
the repurchase of such shares by the
Center (L.P.); and
listed company.
Tibet Hongzhi
Investment
Consulting
Partnership
Enterprise (L.P.)
Mango Media Co., Ltd., as the
Company’s controlling shareholder,
makes the following commitments
Commitments with respect to the intention to
Mango Media Co., January 21, January 21,
on Reducing reduce shareholdings: (1) If we Ongoing
Ltd. 2015 2018
Shareholdings intend to reduce our shareholdings
in the Company after the expiry of
the lock-up period of shares held by
us in the Company, we will legally
54
2020 Annual Report of Mango Excellent Media Co., Ltd.
do same, and make a public
announcement within three trading
days prior to reduction through the
Company. The shareholdings we
reduce in aggregate within two
years after the expiry of the lock-up
period will not exceed 5% of the
total IPO shares of the Company
held by us and the reduction price
will not lower than 100% of the IPO
price of the Company. If we reduce
our shareholdings after two years
upon expiry of the lock-up period,
the price for the shareholdings
reduced through the centralized
quotation trading system of the
stock exchange will not lower than
the daily closing price for one
trading day prior to the public
announcement of reduction. (2) The
reduction period will be six months
after the public announcement of
the reduction plan, 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.
Hunan Hi-tech Investment Group
Co., Ltd., as the party acting in
concert of the Company’s
controlling shareholder Mango
Media, makes the following
commitments with respect to the
intention to reduce shareholdings:
Hunan Hi-tech Commitments
(1) If we intend to reduce our January 20, January 21,
Investment Group on Reducing Ongoing
shareholdings in the Company after 2015 2018
Co., Ltd. Shareholdings
the expiry of the lock-up period of
shares held by us in the Company,
we will legally do same, and make a
public announcement within three
trading days prior to reduction
through the Company. If the
Company’s shareholders intend to
55
2020 Annual Report of Mango Excellent Media Co., Ltd.
reduce their shareholdings in within
two years after the lock-up period,
the number of reduced shares will
not exceed the issuer’s shares held
in total by the Company’s
shareholders; (2) Mode of
reduction: the shareholdings will be
reduced through the centralized
quotation or block trading system of
the stock exchange or through
transfer by agreement (but if the
number of the released lock-up
shares in stock that the Company’s
shareholders expect to publicly sell
within one coming month
accumulatively exceeds 1% of total
shares of the Company, the shares
will not be transferred through
centralized quotation trading system
of the stock exchange), or will be
transferred in accordance with the
provisions of other laws and
regulations then in effect or the
rules of the stock exchange; (3)
Reduction price: if we reduced our
shareholdings within two years
upon expiry of the lock-up period,
the reduction price will not lower
than 100% of the issue price (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 issue price will be
adjusted accordingly).
Hongyi Investment “Hongyi Investment Industry Phase Mianyang Fund
Industry Phase I I Fund (Tianjin) (L.P.) (“Hongyi and Sequoia
Fund (Tianjin) Investment”), Mianyang Science Capital
(L.P.); Mianyang Commitments and Technology Industry disclosed on
January 21, January 21,
Science and on Reducing Investment Fund (L.P.) (“Mianyang November 19,
2015 2018
Technology Industry Shareholdings Fund”), Tianjin Sequoia Capital 2016 and
Investment Fund Investment Fund Center (L.P.) Hongyi
(L.P.); and Tianjin (“Sequoia Capital Tianjin”), as other Investment
Sequoia Capital existing shareholders of the disclosed on
56
2020 Annual Report of Mango Excellent Media Co., Ltd.
Investment Fund Company, make the following December 10,
Center (L.P.) commitments with respect to the 2016 the
intention to reduce shareholdings: Announcement
(1) We will not transfer or entrust on Prompt of
others with management of any Shareholdings
pre-IPO shares of the issuer held by Reduction Plan
us, nor propose the repurchase of for
such shares by the Company within Shareholders
twelve months from the listing date Holding 5% or
of the issuer. (2) If we intend to More of Shares
reduce our shareholdings in the Prior to IPO
Company after the expiry of the through the
lock-up period of shares held by us Company, and
in the Company, we will legally do as of the end of
same, and make a public 2017, all of
announcement within three trading them have
days prior to reduction through the completed
Company. The shareholdings we reduction of
reduce in aggregate within two their
years after the expiry of the lock-up shareholdings.
period will equal to the issuer’s
shares held in total by us and the
reduction price will not lower than
80% of the IPO price of the
Company. The reduction period will
be six 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. 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
57
2020 Annual Report of Mango Excellent Media Co., Ltd.
commitments, the proceeds from
reduction of shareholdings in the
Company will belong to the listed
Company.
1. Strengthening the management of
financing funds. After financing
funds issued this time are received,
the Company’s directors will strictly
comply with the requirements of the
Measures for Management of
Financing Funds of Happigo Inc.,
open the special account for
financing funds, ensure the funds
are used exclusively and strictly
control all links in the use of
financing funds. 2. Actively Fulfilled, and
Commitments
implementing committed projects. all IPO
Mango Excellent on Use of January 21,
The funds raised this time will 9999-12-31 committed
Media Co., Ltd. Financing 2015
closely focus on the Company’s projects have
Funds
principal business, conforming to been closed.
the Company’s future growth
strategy and facilitating
improvement of the Company’s
sustainable profitability. The
Company has fully demonstrated
the investment projects of the
financing funds, and invest its own
or self-raised funds in the aforesaid
projects in advance before the
financing funds are received so as to
yield profits as soon as possible.
Improving the profit distribution
system, in particular cash dividends
policy. The Company improved the
Articles of Associations (Draft) at
the 1st extraordinary general
Commitments meeting of shareholders, stipulating
Mango Excellent January 21,
on Distributing the Company’s profit distribution 9999-12-31 Ongoing
Media Co., Ltd. 2015
Dividends policy, the procedures of
decision-making and
implementation of the profit
distribution policy, preparation and
adjustment mechanism of the profit
distribution policy, and the plan for
58
2020 Annual Report of Mango Excellent Media Co., Ltd.
shareholders’ dividend returns in
order to enhance the protection over
minority shareholders. The Articles
of Associations (Draft) further
defines the Company’s profit
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
de facto controller, and Mango
Media, as the controlling
shareholder of the Company, have
respectively issued their own Letter
Commitments of Commitments on Avoiding
on Avoiding Horizontal Competition. 1.
Hunan Broadcasting Horizontal Controlling Shareholder: Mango
January 21,
System; and Mango Competition, Media, as the controlling 9999-12-31 Ongoing
2015
Media Co., Ltd. Related-party shareholder of the Company, issued
transaction, the Letter of Commitments on
and Fund Use Avoiding Horizontal Competition.
(1) Mango Media and its other
subordinate enterprises (excluding
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) Mango Media will
take and procure any enterprises
controlled by Mango Media to take
59
2020 Annual Report of Mango Excellent Media Co., Ltd.
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 directly or indirectly, or
holding any interests or benefits in
such business; (2) supporting any
other persons other than the issuer
and/or its subordinate enterprises in
any form in engagement in any
business or activity that competes or
would compete with the business
being conducted or to be conducted
by the issuer and/or its subordinate
enterprises. (3) If Mango Media and
its subordinate enterprises have any
commercial opportunity to engage,
join or participate in any business or
activity that would compete with the
business of the issuer and/or its
subordinate enterprises, then the
issuer and/ its subordinate
enterprises will have a priority with
respect to the aforesaid commercial
opportunities. (4) Mango Media, as
the shareholder of the issuer, will
not use the status of the shareholder
and the rights and information
which the shareholder is entitled to
and obtains according to 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, to engage in any
business or activity that damages or
would damage the interests 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 its subordinate
60
2020 Annual Report of Mango Excellent Media Co., Ltd.
enterprises due to breach of the
aforesaid commitments.” 2.
Commitments Avoiding Horizontal
Competition and Constraint
Measures of the De Facto
Controller: (1) Letter of Overall
Commitments Issued by Hunan
Broadcasting System: On March 29,
2012, Hunan Broadcasting System,
as the de facto controller of the
Company, issued the Letter of
Commitments on Avoiding
Horizontal Competition,
undertaking that: ① Hunan
Broadcasting System and its
subordinate enterprises (excluding
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 Mango Media will
take and procure any enterprises
controlled by Mango Media to take
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 directly or indirectly, or
holding any interests or benefits in
such business; (B) supporting any
other persons other than the issuer
and/or its subordinate enterprises in
any form in engagement in any
business or activity that competes or
would compete with the business
being conducted or to be conducted
by the issuer and/or its subordinate
enterprises. ③ If Hunan
Broadcasting System and its
subordinate enterprises have any
commercial opportunity to engage,
61
2020 Annual Report of Mango Excellent Media Co., Ltd.
join or participate in any business or
activity that would compete with the
business of the issuer and/or its
subordinate enterprises, then the
issuer and/or its subordinate
enterprises will have a priority with
respect to the aforesaid commercial
opportunities. 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 aforesaid
commitments. (II) Letter of
Commitments on Avoiding Fund
Use: The controlling shareholders
and de facto controllers 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
violations of the aforesaid
commitments and undertakings, the
controlling shareholders and de
facto controllers will be liable for
compensation according to law.”
CHEN Gang; “Specific measures to stabilize the
JIANG Yingxing; stock: 1. Shareholding increases by
Happigo Inc.; LI the controlling shareholders: (1) The
Commitments
Niu; LI Xiang; controlling shareholders shall,
on Stabilizing January 21, January 21,
Mango Media Co., within 10 trading days after Fulfilled
IPO Stock 2015 2018
Ltd.; OUYANG triggering the obligations of
Price
Wen, TANG Liang; shareholding increases, notify the
TANG Weimin; WU Company in writing as to whether
Junyun; ZHANG or not they have the specific plan to
62
2020 Annual Report of Mango Excellent Media Co., Ltd.
Xiaoxue; ZHANG increase A-share stocks of the
Yong; ZHANG Company, and the Company will
Zhifang; and ZHU make the public announcement; if
Deqiang increasing shareholdings, they shall
disclose the range of shares to be
increased, range of price, date of
competition and other information,
and the amount of shares to be
increased this time will not exceed
30% of cash dividends received
from the Company in aggregate
after the listing of the Company. (2)
If the Company’s stock price has
not met the conditions for starting
measures to stabilize stock price of
the Company before the plan on
shareholding increases of the
controlling shareholders is
implemented, such plan may cease.
(3) The price of shares increased by
the controlling shareholders will not
exceed audited net asset per share
for the latest period. 2. Repurchase
by the Company: (1) If the
controlling shareholders fail to
announce the aforesaid specific plan
on shareholding increases on time,
or clearly state that they have no
plan to increase their shareholdings,
the Company’s board of directors
shall, within 20 trading days after
the obligations of shareholding
increases are triggered firstly, make
the public announcement as to
whether there is the specific share
repurchase plan, and if there is, they
shall disclose the range of shares to
be repurchased, range of price, date
of completion and other
information, and total repurchase
amount will not exceed 30% of
audited net profit attributable to the
parent company’s shareholders for
the previous fiscal year. (2) After
63
2020 Annual Report of Mango Excellent Media Co., Ltd.
the Company’s general meeting of
shareholders deliberates and
approves the share purchase plan,
the Company will notify the
creditors according to law, and
submit the relevant materials to the
securities supervisory management
department, stock exchange and
other competent authorities for
going through approval or filing
formalities. (3) If the daily closing
price of the Company’s shares has
not met the conditions for starting
the measures to stabilize the stock
price before the Company’s share
repurchase plan is implemented, the
issuer may cease to implement the
aforesaid measures to stabilize the
stock price. (4) The share
repurchase price of the Company
will not exceed the audited net asset
per share for the latest period. 3.
Shareholding increases by the
directors and officers: (1) If the
Company’s board of directors fails
to announce the aforesaid share
repurchase plan on time, or the
aforesaid share repurchase plan fails
to be approved at the general
meeting of shareholders for any
reason, then the directors (excluding
independent directors and directors
nominated by non-controlling
shareholders, same below) and
officers shall, within 30 trading days
after the obligations of shareholding
increases are triggered firstly (or if
the directors and officers are
restricted to trade shares for N days
during this period, within 30+N
trading days after the obligations of
shareholding increases are triggered
firstly) or within 10 trading days
after the aforesaid share repurchase
64
2020 Annual Report of Mango Excellent Media Co., Ltd.
plan fails to be approved at the
general meeting of shareholders (or
if the directors and officers are
restricted to trade shares for N days
during this period, within 10+N
trading days after the aforesaid
share repurchase plan fails to be
approved at the general meeting of
shareholders), unconditionally
increase the Company’s A-share
stocks , and the amount of shares to
be increased in aggregate by each of
the directors and officers will not
exceed 30% of the accumulative
amount of after-tax remunerations
or allowances received from the
Company for the previous fiscal
year. (2) If the daily closing price of
the Company’s shares has not met
the conditions for starting the
measures to stabilize the stock price
before the plan on shareholding
increases by the directors and
officers is implemented, the
directors and officers may cease to
implement the aforesaid measures
to stabilize the stock price. (3) The
price of shareholding increases by
the directors and officers will not
exceed the audited net asset per
share for the latest period.”
“(1) We commit that we will not
interfere in the Company’s
operation and management
activities beyond our authority, nor
will we encroach on the Company’s
Hunan Broadcasting interests;
Other September 25,
System; Mango (2) From the date hereof to the 9999-12-31 Ongoing
commitments 2020
Media Co., Ltd. completion of the Company’s
issuance of A shares to specific
objects, if securities regulatory
authorities such as the CSRC and
Shenzhen Stock Exchange make
separate provisions or put forward
65
2020 Annual Report of Mango Excellent Media Co., Ltd.
other requirements on the recovery
measures for returns and the
commitments thereon, and the
above commitments cannot meet
such provisions, we will then make
supplementary commitments in
accordance with the latest
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
according to law if losses are thus
caused to the Company or its
shareholders.”
“(1) I will faithfully and diligently
perform my duties and safeguard
the legitimate rights and interests of
the Company and all shareholders;
CAI Huaijun; HE (2) I will not to transfer benefits to
Jin; LIANG Deping; other entities or individuals free of
LIU Xin; LIU charge or under unfair conditions,
Yuhui; LUO nor otherwise damage the
Weixiong; TANG Company’s interests; (3) I will
Other
Liang; WANG Ke; restrict my position-related
commitme
WU Jun; XIAO consumption; (4) I will not use the
nts
Xing; ZHANG Company’s assets to engage in
Huali; ZHANG investing or consumption activities
Yong; ZHENG irrelevant to performance of my
Huaping; ZHONG duties; (5) I will procure the linkage
Hongming of the compensation system
formulated by the board of directors
or the remuneration and appraisal
assessment committee with the
implementation of the Company’s
66
2020 Annual Report of Mango Excellent Media Co., Ltd.
recovery measures for returns
within my legal authority; (6) if the
Company subsequently implements
the equity incentive plan, I will
procure the linkage of exercise
conditions for the Company’s equity
incentives to be announced with the
implementation of the Company’s
recovery measures for returns
within my legal authority; (7) from
the date hereof to the completion of
the Company’s issuance of A shares
to specific objects, if securities
regulatory authorities such as the
CSRC and Shenzhen Stock
Exchange make separate provisions
or put forward other requirements
on the recovery measures for returns
and the commitments thereon, and
the above commitments cannot
meet such provisions, I will then
make supplementary commitments
in accordance with the latest
provisions; (8) I will effectively
take relevant recovery measures for
returns formulated by the Company
and fulfill my corresponding
commitments on recovery measures
for 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
according to law if losses are thus
caused to the Company or its
shareholders.”
1. We have never engaged in any
Other investment financial business within
Mango Excellent December 25,
commitme six months prior to the date of the 9999-12-31 Ongoing
Media Co., Ltd. 2020
nts board meeting concerning this
offering; from the date of issuing
67
2020 Annual Report of Mango Excellent Media Co., Ltd.
this commitment letter (December
25, 2020) to the end of the use of
the financing funds or within 36
months after availability of the
financing funds, we undertake not
to increase the capital investment
(including capital increase, loan,
guarantee and other forms of capital
investment) in such financial
business.
2. We will initiate as soon as
possible, and complete within six
months from the date of issuing this
commitment letter, the disposal of
Happy Money’s micro-loan
business by means of dissolution
and liquidation, business closure or
equity transfer to accredited entities,
etc. After the disposal, we will no
longer engage in micro-loan
business.
Commitments
on equity
incentives
Other
commitments
made to the
Company’s
minority
shareholders
Fulfill the
commitments on Yes
time or not
2. Explanation of the original profit estimate with respect to the assets or projects of the
Company and reasons for realization if the Company makes a profit estimate for its assets or
projects which is still in progress during the Reporting Period
√ Applicable □ N/A
Asset or End date of Current Current Reason for not Disclosure date Index of the
project with Commence forecast estimated achieved achieving the of the original original
68
2020 Annual Report of Mango Excellent Media Co., Ltd.
profit estimates date of forecast performanc performance(in estimate (if estimate estimate
e (in 0’000) 0’000) applicable)
Announcement
: Report for
Issuance of
Shares for
Purchase of
Assets and
Happy Raising of
January 1,2017 December 31,2020 129,369.6 145,838.81 N/A June 22,2018
Sunshine Matching
Funds and
Related Party
Transactions,
disclosed at
http://www.cni
nfo.com.cn/
Mango Fun, January 1,2017 December 31,2020 5,091.56 7,674.53 N/A June 22,2018
EE-Media, January 1,2017 December 31,2020 2,844.41 4,987.54 N/A June 22,2018
Mango Studios January 1,2017 December 31,2020 4,688.07 6,756.92 N/A June 22,2018
Mango
January 1,2017 December 31,2020 7,495.76 8,364.43 N/A June 22,2018
Entertainment
Commitments made by the Company's shareholders and counterparties to the annual operating results of the Company or related
assets
√ Applicable □ N/A
On September 27, 2017, the Agreement on Profit Estimating Compensation for the Issuance of Shares to Purchase Assets with
effectiveness subject to certain conditions were made and entered into by and between the Listed Company and Mango Media acti ng
as the restructuring counterparty and the controlling shareholder of the Company. On November 20, 2017, the two parties above
concluded the Supplemental Agreement to Agreement on Profit Estimating Compensation for the Issuance of Shares to Purchase
Assets with effectiveness subject to certain conditions. According to the two agreements, Mango Media has agreed to make the
following specific commitments to net profits arising from the performance commitment period of the target companies:
In: RMB0'000
Target Company Committed net profits Committed net profits in Committed net profits in Committed net profits in
in 2017 2018 2019 2020
Happy Sunshine 31,549.47 67,945.78 91,021.50 129,369.60
Mango Fun, 4,132.91 5,070.81 4,876.54 5,091.56
EE-Media, 9,548.62 2,087.46 2,538.96 2,844.41
Mango Studios 4,150.39 4,944.67 4,531.96 4,688.07
Mango Entertainment 2,773.74 7,451.30 6,432.91 7,495.76
69
2020 Annual Report of Mango Excellent Media Co., Ltd.
Completion of performance commitments and their impacts on goodwill impairment
In 2020, all of the 5 targeted companies in asset restructuring completed their performance commitments successfully, evidenced by
112.73%, 150.73%, 175.35%, 144.13%, 111.59% performance achieved by Happy Sunshine, Mango Fun, EE-Media, Mango Studios
and Mango Entertainment respectively. No goodwill is caused from this restructuring.
III. Appropriation of non-operating funds of the Listed Company by the controlling
shareholder and its related parties
□ Applicable √ N/A
The Company’s controlling shareholder and its related parties have appropriated no non-operating funds of the Listed Company
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, the board of supervisors, the independent directors (if any)
for the “Modified Auditor’s Report” issued by the engaged accounting firm in the Reporting
Period
□ Applicable √ N/A
VI. Explanation from the board for reasons and effects of accounting policies and accounting
estimate change and significant accounting mistake correction
√ Applicable □ N/A
On April 23, 2020, the Company held the 29th meeting of the third board of directors and the 19th meeting of the third board of
supervisors , deliberating and approving the Proposal to Changes in Accounting Policies, as detailed below:
(1) Reasons for changes
On July 5, 2017, the Ministry of Finance issued the Notice on Issuing the Revised Accounting Standards for Business
Enterprises No. 14 - Revenue (Cai Kuai [2017] No. 22), requiring that enterprises listed concurrently at home and abroad and
enterprises that are listed abroad and prepare financial statements by adopting the International Financial Reporting Standards or the
Accounting Standards for Business Enterprises shall implement the revised standards as of January 1, 2018; other domestic listed
enterprises shall implement the revised standards as of January 1, 2020; and non-listed enterprises that adopt the Accounting
Standards for Business Enterprises shall implement the same as of January 1, 2021.
As a domestic listed company, the Company shall implement the said revised standards from January 1, 2020, and adjust the
original accounting policies accordingly.
(2) Accounting policies before this change
Before this change, the Company implemented its accounting policies in accordance with the Accounting Standards for
Business Enterprises - Basic Standards issued by the Ministry of Finance as well as the specific accounting standards, the application
guidelines, and interpretations to accounting standards for business enterprises and other relevant provisions.
(3) Accounting policies after this change
After this change, the Company will implement the relevant provisions of the Accounting Standards for Business Enterprises
No. 14 - Revenue revised by the Ministry of Finance on July 5, 2017. In addition to the above accounting policy changes, the
remaining unchanged parts are still implemented in accordance with the Accounting Standards for Business Enterprises - Basic
70
2020 Annual Report of Mango Excellent Media Co., Ltd.
Standards issued by the Ministry of Finance previously, as well as the specific accounting standards, the application guidelines, and
interpretations to accounting standards for business enterprises and other relevant provisions.
VII. Explanation for changes in the scope of consolidated financial statements comparing with
those in prior year
√ Applicable □ N/A
During the Reporting Period, Happy Sunshine Hongmang Education Technology Co., Ltd. and Xiaomang
Electronic Commerce Co., Ltd. are newly established, while Doug (Shanghai) Investment Management Limited
Liability Company, Ningbo Free Trade Zone Happigo International Trade Co., Ltd., and Damei Fashion
(Shanghai) Culture Media Co., Ltd. are deregistered. For details, see VIII. Change in Scope of Consolidation in
Section XII. Financial Report hereof.
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 5
Name of the engaged certified public accountants LI Xinkui, ZHANG Hong
Audit period of the engaged certified public accountants 5
Whether the certified public accountant is changed
□ Yes √ No
Description of engaging certified public accountants, financial adviser, or sponsor for internal control
□ Applicable √ N/A
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 no material litigation or arbitration during the Reporting Period.
XII. Penalty and rectification
□ Applicable √ N/A
71
2020 Annual Report of Mango Excellent Media Co., Ltd.
The Company has no penalty and rectification during the Reporting Period.
XIII. Integrity of the Company and its controlling shareholders and de facto controllers
□ Applicable √ N/A
XIV. 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.
XV. Significant related-party transactions
1. Related-party transactions related to daily operations
√ Applicable □ N/A
Approved Available
Proportio Exceed
Related Amount trading market
n of the
Related party Pricing (in amount Mode of price of Disclosur Disclosur
Type Content Price similar approved
party relationsh principal RMB0’00 (in settlement similar e date e index
trading amount or
ip 0) RMB0’00 transactio
amount not
0) ns
Publishe
d at the
official
website
of cninfo;
Announc
ement
Title:
Hunan Under
Announc
Radio, Film common Acceptan
ement on
and control of ce of Copyright, Market By April 25,
66,211.43 66,211.43 7.17% 62,855 Yes 66,211.43 the
Television the same labor etc. pricing transfer 2020
Occurren
Group Co., de facto service
ce of
Ltd. controller
Related-p
arty
Transacti
ons
Concerni
ng Daily
Operatio
ns in
72
2020 Annual Report of Mango Excellent Media Co., Ltd.
2019 and
the
Forecast
of
Related-p
arty
Transacti
ons
Concerni
ng Daily
Operatio
ns in
2020,
and
Announc
ement on
Adjusting
the
Forecast
of
Transacti
ons
Concerni
ng Daily
Operatio
ns in
2020
Publishe
d at the
official
website
of cninfo;
Announc
Hunan Under
ement
Radio, Film common
Offer of Title:
and control of Advertisin Market By April 25,
labor 80,190.06 80,190.06 5.73% 101,950 No 80,190.06 Announc
Television the same g release pricing transfer 2020
service ement on
Group Co., de facto
the
Ltd. controller
Occurren
ce of
Related-p
arty
Transacti
ons
73
2020 Annual Report of Mango Excellent Media Co., Ltd.
Concerni
ng Daily
Operatio
ns in
2019 and
the
Forecast
of
Related-p
arty
Transacti
ons
Concerni
ng Daily
Operatio
ns in
2020,
and
Announc
ement on
Adjusting
the
Forecast
of
Transacti
ons
Concerni
ng Daily
Operatio
ns in
2020
Publishe
d at the
official
website
Yunhong Company
of cninfo;
Communica materially
Offer of Announc
tion affected Advertisin Market By April 25,
labor 77,148.37 77,148.37 5.51% 104,000 No 77,148.37 ement
Technology by the de g release pricing transfer 2020
service Title:
(Guangzhou facto
Announc
) Co., Ltd. controller
ement on
the
Occurren
ce of
74
2020 Annual Report of Mango Excellent Media Co., Ltd.
Related-p
arty
Transacti
ons
Concerni
ng Daily
Operatio
ns in
2019 and
the
Forecast
of
Related-p
arty
Transacti
ons
Concerni
ng Daily
Operatio
ns in
2020
Publishe
d at the
official
website
of cninfo;
Announc
ement
Title:
Announc
Under
ement on
common
Hunan EE Offer of the
control of Advertisin Market By April 25,
Advertising labor 55,646.59 55,646.59 3.97% 32,187 Yes 55,646.59 Occurren
the same g release pricing transfer 2020
Co., Ltd. service ce of
de facto
Related-p
controller
arty
Transacti
ons
Concerni
ng Daily
Operatio
ns in
2019 and
the
75
2020 Annual Report of Mango Excellent Media Co., Ltd.
Forecast
of
Related-p
arty
Transacti
ons
Concerni
ng Daily
Operatio
ns in
2020
Publishe
d at the
official
website
of cninfo;
Announc
ement
Title:
Announc
ement on
the
Occurren
ce of
Related-p
arty
MIGU
Sharing Offer of Transacti
Culture Operator Market By April 25,
the key labor 82,617.64 82,617.64 5.98% 82,716 Yes 82,617.64 ons
Technology revenue pricing transfer 2020
manager service Concerni
Co., Ltd.
ng Daily
Operatio
ns in
2019 and
the
Forecast
of
Related-p
arty
Transacti
ons
Concerni
ng Daily
Operatio
ns in
76
2020 Annual Report of Mango Excellent Media Co., Ltd.
2020,
and
Announc
ement on
Adjusting
the
Estimate
d Amount
of
Related-p
arty
transacti
ons
Concerni
ng Daily
Operatio
ns with
MIGU
Culture
Technolo
gy Co.,
Ltd. in
2020
361,814.0
Total -- -- -- 383,708 -- -- -- -- --
9
Details of return of goods with large sales None
Actual performance within the reporting
period (if any) in the event that the total
amount of the daily related-party transactions None
to occur in the current period is expected by
categories
Reasons for the large difference between the
trading price and the market reference price N/A
(if applicable)
2. Related-party transactions related to acquisition or disposal of assets and equities
√ Applicable □ N/A
Carrying Appraisal Trading
Transfer
Related amount of value of profit or
Pricing price Mode of Disclosure Disclosure
Related party party Type Content transferre transferre loss
principal (RMB0’0 settlement date index
relationship d assets d assets (RMB0’0
00)
(RMB0’0 (RMB0’0 00)
77
2020 Annual Report of Mango Excellent Media Co., Ltd.
00) 00)
Published
at the
official
website
of cninfo;
Announce
ment on
Mango
Transfer
Media Parent Equity Equity By March 18,
Appraisal 18,929.58 25,967.92 25,967.92 7,038.34 of Equity
Co., Ltd. company transfer transfer transfer 2020
in Joint-
stock
Company
and
Related
Party
Transacti
on
Reasons for significant difference between
transfer price and carrying amount or None
appraisal value (if any)
Impact on the Company’s operating results An amount of RMB70.3834 was recognized for investment income from equity
and financial situation transfer, accounting for 3.56% of the net profit in the consolidated statements.
The performance realization in the
Reporting Period if the related party
None
transaction involves performance
agreement
3. Related-party transactions related to joint external investment
□ Applicable √ N/A
The Company has no related-party transactions related to joint external investment during the Reporting Period.
4. Credits and debits with related parties
√ Applicable □ N/A
Where there is any non-operating credits and debits with related parties
□ Yes √ No
The Company has no non-operating credits and debits with related parties during the Reporting Period.
5. Other significant related-party transactions
□ Applicable √ N/A
The Company has no other significant related-party transactions during the Reporting Period.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
XVI. Significant contracts and performances thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ N/A
The Company has no trusteeship during the Reporting Period.
(2) Contracting
□ Applicable √ N/A
The Company has no contracting during the Reporting Period.
(3) Leasing
□ Applicable √ N/A
The Company has no lease during the Reporting Period.
2. Significant guarantee
□ Applicable √ N/A
The Company has no guarantee during the Reporting Period.
3. Significant contracts for daily operation
Unit:
Whether the
Is there any
conditions
Sales revenue significant
Name of Accumulated affecting the
Progress of amount Collection of risk that may
contracting Name of Total contract sales revenue performance
contract recognized in accounts result in the
party of the counter party price amount of significant
performance the current receivable non-performa
Company recognized contracts
period nce of
have material
contract
changes
4. Cash asset management by others under entrustment
(1) Entrusted financing
√ Applicable □ N/A
Overview of entrusted financing in the Reporting Period
In: RMB0’000
Capital sources of Amount of entrusted Amount overdue and
Specific type Undue balance
entrusted financing financing not recovered
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Bank financing product Own funds 25,150 0 0
Total 25,150 0 0
Details of high-risk entrusted financing with significant single amount or low security, poor liquidity and non-break-even
□ Applicable √ N/A
Expected unavailability to recover the principal or other situations that may lead to impairment with respect to entrusted financing
□ Applicable √ N/A
(2) Entrusted loans
□ Applicable √ N/A
The Company has no entrusted loan in the Reporting Period.
5. Other significant contracts
□ Applicable √ N/A
The Company has no other significant contracts in the Reporting Period.
XVII. Social Responsibilities
1. Performance of social responsibilities
For details, refer to 2020 Social Responsibility Report disclosed by the Company at www.cninfo.com.cn.
2. Description of targeted poverty alleviation activities
(1) Plan for targeted poverty alleviation
In response to the national, provincial, and municipal calls for poverty alleviation in a serious attitude, the Company actively carry
out targeted poverty alleviation activities by giving full play to the advantages of the Company’s platform and industrial chains.
(2) Overview of annual targeted poverty alleviation
For details, refer to the 2020 Social Responsibility Report disclosed by the Company at www.cninfo.com.cn.
(3) Effects of targeted poverty alleviation
Unit of
Indicator Quantity/Development
measurement
I. Overall —— ——
Including: 1. funds RMB0’000 1,509.64
II. Subdivided investments —— ——
1. Poverty alleviation via industry
—— ——
development
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Including: 1.1 Type of poverty alleviation
—— E-commerce poverty alleviation
projects involving industrial development
1.2 Number of poverty alleviation projects
Unit 1
involving industrial development
1.3 Investment amount of poverty
alleviation projects involving industrial RMB0’000 1,489.641
development
2. Poverty alleviation via employment transfer —— ——
3. Poverty alleviation via relocation —— ——
4. Poverty alleviation via education —— ——
5. Health poverty alleviation —— ——
6. Ecological poverty alleviation —— ——
7. Underwritten protection —— ——
8. Poverty alleviation via social resources —— ——
9. Other items —— ——
9.2. Investment amounts RMB0’000 20
III. Awards (content, level) —— ——
Note: 1 It refers to the amount of investment in the project i.e. “Mango Poverty Alleviation Cloud Supermarket” of Happigo Co., Ltd.,
a wholly-owned subsidiary of the Company, during the Reporting Period.
(4) Supplementary plan for targeted approach to alleviating poverty
In 2021, the Company will earnestly fulfill its social responsibility by continuing the active response to the national, provincial, and
municipal call for rural revitalization.
3. Environmental protection
Whether the Listed Company and its subsidiaries are in high pollution industries regulated by the State Department of Environmental
Protection.
□ Yes √ No
No
The Listed Company and its subsidiaries are not in high pollution industries regulated by the State Department of Environmental
Protection.
XVIII. Description of other significant matters
√ Applicable □ N/A
On April 14, 2021, 100% of the equity in Mango Studios Cultural Co., Ltd. and Hunan Mango Entertainment Co., Ltd.,
wholly-owned subsidiaries of the Company, were transferred to Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd.,
another wholly-owned subsidiary of the Company.
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XIV. Significant matters of subsidiaries of the Company
□ Applicable √ N/A
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section VI Share Changes and Information of Shareholders
I. Share changes
1. Share changes
Unit: share
Before this change Increase or decrease this time (+,-) After this change
Bonus Capitalization of
Quantity Ratio New shares Others Sub-total Quantity Ratio
shares capital reserve
I. Restricted share 946,357,263 53.15% 0 0 0 -97,336,406 -97,336,406 849,020,857 47.69%
1. Shareholdings by the
0 0.00% 0 0 0 0 0 0 0.00%
State
2. Shareholdings by the
926,889,757 52.06% 0 0 0 -77,870,025 -77,870,025 849,019,732
State-owned legal persons
3. Other shareholdings
19,467,506 1.09% 0 0 0 -19,466,381 -19,466,381 1,125 0.00%
by domestic investors
Including: shareholdings
19,467,506 1.09% 0 0 0 -19,467,506 -19,467,506 0 0.00%
by domestic legal persons
Shareholdings by
0 0.00% 0 0 0 1,125 1,125 1,125 0.00%
domestic natural persons
4. Shareholdings by
0 0.00% 0 0 0 0 0 0 0.00%
foreign investors
Including:
Shareholdings by overseas 0 0.00% 0 0 0 0 0 0.00%
legal persons
Shareholdings by
0 0.00% 0 0 0 0 0 0 0.00%
overseas natural persons
II. Unrestricted share 834,020,248 46.85% 0 0 0 97,336,406 97,336,406 931,356,654 52.31%
1. RMB ordinary share 834,020,248 46.85% 0 0 0 97,336,406 97,336,406 931,356,654 52.31%
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%
1,780,377,51
III. Total 100.00% 0 0 0 0 0 1,780,377,511 100.00%
1
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Reason for share changes
√ Applicable □ N/A
The restriction on the restricted shares is released as the restriction period has expired.
Approval of share changes
□ Applicable √ N/A
Description of registration of share changes
□ Applicable √ N/A
Progress of share repurchase
□ Applicable √ N/A
Progress of reducing repurchased shares through centralized competitive pricing
□ 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
Unit: share
Restricted
Increase in Date of
Opening shares Closing
Name of restricted proposed
restricted released for restricted Reasons for restriction
shareholder shares for the release of
shares the current shares
current period restriction
period
China Life
Insurance
Company Limited Additional restricted shares in Listing and
－Dividend－ 19,467,506 0 19,467,506 0 private placement for raising circulating on
Individual matching funds July 3, 2020
Dividend-005L-F
H002 Shen
China Mobile Additional restricted shares in Listing and
77,870,025 0 77,870,025 0
Capital Holding private placement for raising circulating on
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Co., Ltd. matching funds July 3, 2020
Additional restricted shares in
Mango Media Co.,
849,019,732 0 0 849,019,732 offering of shares for purchasing July 12, 2021
Ltd.
assets
During the
term of
office, the
restriction in
25% of the
Restricted shares for directors, number of
YANG Yun 0 1,125 0 1,125
supervisors, and officers shares held at
the end of
last year will
be lifted at
the beginning
of each year.
Total 946,357,263 1,125 97,337,531 849,020,857 -- --
II. Shares issuing and listing
1. Securities issuing in 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 de facto controllers
1. Description of the quantity of the Company’s shareholders and shares held by them
Unit: share
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Total
Total ordinary preferred
Total preferred
shareholders shareholders
shareholders with
Total ordinary as of the end with
recovered voting rights as
shareholders as of the month recovered
24,773 36,311 0 of the end of the month 0
of the end of prior to the voting rights
prior to the disclosure date
the period disclosure date as of the end
of annual report (refer to
of annual of the period
Note 9)
report (if any) (refer
to Note 9)
Information of shareholders holding 5% or more of shares or top 10 shareholders
Closing Quantity of Quantity of Pledged or frozen
Name of Nature of Shareholding Increase or
shareholding restricted unrestricted
shareholder shareholder percentage decrease Status Quantity
quantity shares held shares held
Mango Media State-owned 1,049,300,3
58.94% -93,647,857 849,019,732 200,280,569
Co., Ltd. legal person 01
Domestic
Haiyan Ali
non-state-ow
Venture Capital 5.26% 93,647,857 93,647,857 0 93,647,857
ned legal
Co., Ltd.
persons
China Mobile
Capital State-owned
3.99% 70,959,923 -6,910,102 0 70,959,923
Holding Co., legal person
Ltd.
HONG KONG
SECURITIES
Foreign legal
CLEARING 2.42% 43,127,568 20,186,145 0 43,127,568
person
COMPANY
LIMITED
CHINA CITIC
BANK
CORPORATIO
N LIMITED -
BOCOM
Schroders
Xinshenghuoli Others 0.96% 17,177,141 2,633,288 0 17,177,141
Flexible
Allocation
Hybrid
Securities
Investment
Fund
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2020 Annual Report of Mango Excellent Media Co., Ltd.
China
Merchants
Bank Co., Ltd.
- Xingquan
Heyi Flexible
Others 0.74% 13,089,224 -11,373,582 0 13,089,224
Allocation
Hybrid
Securities
Investment
Fund (LOF)
China Postal
Savings Bank
Co.,
Ltd.-China-Eur
ope Small and Others 0.69% 12,325,850 1,106,951 0 12,325,850
Medium Equity
Securities
Investment
Fund (LOF)
China
Construction
Bank
Corporation -
BOCOM
Schroders Others 0.68% 12,091,876 12,091,876 0 12,091,876
Kernel-Driven
Hybrid
Securities
Investment
Fund
China Life
Insurance
Company
Limited -
Others 0.58% 10,262,239 -10,461,440 0 10,262,239
Dividends -
Individual
Dividends-005
L-FH002 Shen
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2020 Annual Report of Mango Excellent Media Co., Ltd.
China
Merchants
Bank Co., Ltd.
- Xingquan
Herun Graded Others 0.53% 9,394,546 3,018,554 0 9,394,546
Hybrid
Securities
Investment
Fund
Mango Media Co., Ltd. as the controlling shareholder of the Company has no related-party
Explanation for related-party
relationship or concerted action relationship with other top ten shareholders, and it remains
relationship or concerted
unknown whether or not there is a related-party relationship or concerted action relationship among
action of above shareholders
other top ten shareholders.
Shareholdings of top 10 unrestricted shareholders
Name of shareholders Quantity of unrestricted shares held at the end of the Reporting Period Type
Type Quantity
RMB
Mango Media Co., Ltd. 200,280,569 ordinary 200,280,569
shares
RMB
Haiyan Ali Venture Capital
93,647,857 ordinary 93,647,857
Co., Ltd.
shares
RMB
China Mobile Capital Holding
70,959,923 ordinary 70,959,923
Co., Ltd.
shares
HONG KONG SECURITIES RMB
CLEARING COMPANY 43,127,568 ordinary 43,127,568
LIMITED shares
CHINA CITIC BANK
CORPORATION LIMITED -
RMB
BOCOM Schroders
17,177,141 ordinary 17,177,141
Xinshenghuoli Flexible
shares
Allocation Hybrid Securities
Investment Fund
China Merchants Bank Co.,
RMB
Ltd. - Xingquan Heyi Flexible
13,089,224 ordinary 13,089,224
Allocation Hybrid Securities
shares
Investment Fund (LOF)
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2020 Annual Report of Mango Excellent Media Co., Ltd.
China Postal Savings Bank
RMB
Co., Ltd.-China-Europe Small
12,325,850 ordinary 12,325,850
and Medium Equity Securities
shares
Investment Fund (LOF)
China Construction Bank
Corporation - BOCOM RMB
Schroders Kernel-Driven 12,091,876 ordinary 12,091,876
Hybrid Securities Investment shares
Fund
China Life Insurance
RMB
Company Limited - Dividends
10,262,239 ordinary 10,262,239
- Individual
shares
Dividends-005L-FH002 Shen
China Merchants Bank Co.,
RMB
Ltd. - Xingquan Herun
9,394,546 ordinary 9,394,546
Graded Hybrid Securities
shares
Investment Fund
Explanation for related-party
relationship or concerted
There is no related-party relationship or concerted action relationship between the Mango Media
actions between top 10
Co., Ltd. as the controlling shareholder of the Company and other top 10 unrestricted outstanding
unrestricted outstanding
shareholders; it remains unknown whether or not there is a related-party relationship or concerted
shareholders, and between top
action relationship among top 10 unrestricted outstanding shareholders and between top 10
10 unrestricted outstanding
unrestricted outstanding shareholders and top 10 shareholders.
shareholders and top 10
shareholders
Explanation for shareholders
participating in the margin
None
trading and short-selling (if
any) (refer to Note 5)
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. The Company’s controlling shareholder
Nature of the controlling shareholder: local state-owned holding company
Type of the controlling shareholder: legal person
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Legal
representative/
Controlling shareholder Date of incorporation Organization code Principal activities
responsible
person
Planning, production and operation of
radio and television programs; asset
management and investment subject to
laws and regulations (excluding
national financial supervision and
financial credit businesses such as
deposit absorption, fund collection,
Mango Media Co., Ltd ZHANG Huali July 10, 2007 914300006707880875 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)
Change of the controlling shareholder in the Reporting Period
□ Applicable √ N/A
The Company has not changed the controlling shareholder in the Reporting Period.
3. The Company’s de facto controller and its acting-in-concert parties
Nature of the de facto controller: Local state capital management institution
Type of the controlling shareholder: Legal person
Legal representative/ Date of
De facto controller Organization code Principal activities
responsible person incorporation
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Broadcasting news and other
information, and television
programs to promote
socio-economic and cultural
development; news, thematic,
literary, and artistic broadcasts,
consulting services, advertising,
12430000444877954 broadcasting technical services,
Hunan Broadcasting System GONG Zhengwen January 25, 2010
G broadcasting research, broadcast
business trainings, publishing and
distribution of audiovisual
products, television program
production, television programs
broadcasting and rebroadcasting,
television industry business, and
television research.
Equity of other domestic and According to the guideline of the Hunan Provincial CPC Committee and Hunan Provincial
oversea listed companies Government for the integration and reform of Hunan Broadcasting System, despite a related
controlled by the de facto relationship between Hunan Broadcasting System and Hunan TV & Broadcast Intermediary Co.,
controller in the Reporting Ltd., the de facto controller, and its subordinate companies hold no shares in Hunan TV & Broadcast
Period Intermediary Co., Ltd.
Change of the de facto controller in the Reporting Period
□ Applicable √ N/A
The Company has not changed the de facto controller in the Reporting Period
Block diagram for the ownership and controlling relationship between the Company and the de facto controller
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Hunan Broadcasting System
100% shares
Mango Media Co., Ltd.
58.94% shares
Mango Excellent Media Co., Ltd..
The Company is controlled by the de facto controller through trust funds or other asset management methods
□ Applicable √ N/A
4. Other legal person shareholders with more than 10% shares in the Company
□ Applicable √ N/A
5. Restriction on reduction of shares to the controlling shareholder, the de facto controller, the
restructuring party, and other committed entity
□ Applicable √ N/A
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section VII Preferred Shares
□ Applicable √ N/A
The Company has no preferred shares in the Reporting Period.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section VIII Convertible Bonds
□ Applicable √ N/A
The Company has no convertible bonds in the Reporting Period.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section IX Directors, Supervisors, Officers and Employees
I. Changes in shares held by directors, supervisors, and officers
Number of
Number of Number of Number of
shares held
increased reduced Other shares held
at the
Office term Office term shares for shares for increases or at the end
Name Position Status Gender Age beginning
from to the current the current decreases of the
of the
period period (unit: share) period
period:
(unit: share) (unit: share) (unit: share)
(unit: share)
ZHANG Chairman November
Current Male 0 0 0 0 0
Huali of the board 16, 2017
ZHONG Independent June 14,
Current Male 0 0 0 0 0
Hongming director 2017
Independent January 8,
XIAO Xing Current Female 0 0 0 0 0
director 2019
Independent Male January 8,
LIU Yuhui Current 0 0 0 0 0
director 2019
LUO Male September
Director Current 0 0 0 0 0
Weixiong 19, 2019
ZHANG Male May 25,
Director Current 0 0 0 0 0
Yong 2011
Director, Current Male
CAI September
general 0 0 0 0 0
Huaijun 12, 2018
manager
Current Male September
LIU Xin Director 0 0 0 0 0
19, 2019
TANG Current Male June 1,
Director 0 0 0 0 0
Liang 2014
Chairman Current Male
of the board June 14,
YANG Yun 0 0 0 0 0
of 2017
supervisors
Current Male June 14,
LI Jiaochun Supervisor 0 0 0 0 0
2017
Employee Current Male August 19,
FANG Fei 0 0 0 0 0
supervisor 2020
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Deputy Current
August 16,
HE Jin general Female 0 0 0 0 0
2018
manager
Deputy Current Male
ZHENG August 16,
general 0 0 0 0 0
Huaping 2018
manager
Deputy Current Male
August 16,
WANG Ke general 0 0 0 0 0
2018
manager
Deputy
general
LIANG August 16,
manager Current Male 0 0 0 0 0
Deping 2018
and finance
director
Secretary of
April 27,
WU Jun the board of Current Female 0 0 0 0 0
2019
directors
JIANG Employee May 12, August 19,
Former Female
Qian supervisor 2015 2020
Deputy Former
August 16, August 8,
XIAO Ning general Female 0 0 0 0 0
2018 2020
manager
Total -- -- -- -- -- -- 0 1,500 0 0 1,500
II. Changes of directors, supervisors, and officers
√ Applicable □ N/A
Name Position Type Date Reasons
Resigned upon
JIANG Qian Employee supervisor expiry of the August 19, 2020 She resigned due to expiry of her term of office.
term
He was elected as an employee supervisor by the workers
and employees’ congress to replace the former employee
FANG Fei Employee supervisor Newly elected August 19, 2020
supervisor upon her resign from officer upon expiry of
the term.
Deputy general She resigned as deputy general manager of the Company
XIAO Ning Resigned August 19, 2020
manager due to work transfer arrangement.
III. Job Titles
About the education backgrounds and main work experiences of the existing directors, supervisors and officers of the Company and
their current job duties in the Company
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2020 Annual Report of Mango Excellent Media Co., Ltd.
1. Directors
ZHANG Huali, male, Han nationality, born in December 1964, a member of the Communist Party of China and a first-class
literary editor. He graduated from the Chinese Department of Fudan University in 1986 and joined Hunan TV in the same year. His
work experiences are as follows: the reporter of the Hunan News Network and Focus, the producer of Evening News and News Watch,
the deputy director of the News Center of Hunan TV from July 1986 to December 1998; the first deputy director of Hunan TV's
Cultural and Sports Channel from December 1998 and January 2001; the director of Hunan TV's Entertainment Channel from
January 2001 to September 2002; the director and the deputy secretary of the CPC General Branch of Hunan TV's Entertainment
Channel from September 2002 to October 2004; the director and the deputy secretary of the Party Committee of Hunan TV's
Entertainment Channel from October 2004 to December 2006; the deputy general manager of Golden Eagle Broadcasting System
and the director of Entertainment Channel and the deputy secretary of the Party Committee of Hunan TV from December 2006 to
July 2008; the deputy general manager of Golden Eagle Broadcasting System, the chief editor and deputy head (ranking first) of
Hunan TV (headquarters), the director and the deputy secretary of the CPC General Branch of Hunan TV's Entertainment Channel
from July 2008 to September 2009; the deputy general manager of Golden Eagle Broadcasting System and the chief editor and
deputy head (ranking first) of Hunan TV (headquarters) from September 2009 to March 2010; a member of the Party Committee and
the deputy head of Hunan Broadcasting System from March 2010 to August 2020; a member of the Party Committee, the deputy
head and the chief editor of Hunan Broadcasting System from August 2010 to December 2010; a member of the Party Committee,
the deputy head and chief editor of Hunan Broadcasting System and the director of Hunan Satellite TV Channel from December
2010 to May 2015; a member of the Party Committee, the deputy head and the chief editor of Hunan Broadcasting System and the
general manager of Golden Eagle Broadcasting System and the director of Hunan Satellite TV Channel from May 2015 to June 2017;
a member of the Party Committee, the deputy head and chief editor of Hunan Broadcasting System, the deputy secretary of the Party
Committee and the general manager of Golden Eagle Broadcasting System from June 2017 to June 2020; the secretary of the Party
Committee, the chairman and chief editor of Golden Eagle Broadcasting System (Hunan Broadcasting System) from June 2020 to
November 2020; the secretary of the Party Committee and the chairman of Golden Eagle Broadcasting System (Hunan Broadcasting
System) since November 2020. He acted as the chairman of the Company since November 2017 and the secretary of the Party
Committee of the Company since November 2018.
ZHONG Hongming, male, Han nationality, born in January 1975, graduated from the Law School of Renmin University of
China with a doctor's degree of Law. He worked in Shenzhen Stock Exchange and now serves as an associate researcher at the
Institute of Law, Sichuan Academy of Social Sciences and concurrently works as a member of the council of the China Securities
Law Research Association, the secretary-general of Sichuan Commercial Law Research Association, and an independent director of
FIYTA Precision Technology Co., Ltd. And from June 2017 to present, he has been serving as an independent director of the
Company.
XIAO Xing, female, born in March 1971, a member of the Communist Party of China, graduated from Tsinghua University
with a doctor's degree of Accounting. She joints in the School of Economics and Management of Tsinghua University in 1971 to
successively serve as teaching assistant, lecturer, associate professor, long-term external associate professor and professor. Now she
works as the professor of the School of Economics and Management, the head of the Department of Accounting and the deputy
executive dean of the Global Equity Private Research Institute of Tsinghua University, and concurrently serves as a member of the
National Accounting Professional Master Education Steering Committee, a member of the Accounting Teaching Steering Committee
of the Ministry of Education, and an independent director of Agricultural Bank of China Co., Ltd. and Bloomage Biotechnology
Corporation Limited. And from January 2019 to present, she has been serving as an independent director of the Company.
LIU Yuhui, male, born in October 1970, a member of the Communist Party of China, graduated from Chinese Academy of
Social Sciences with a doctor's degree of Quantitative Economics. He worked as the head of Key Financing Laboratory in the
Institute of Finance of Chinese Academy of Social Sciences from August 2003 to April 2017, joined in the Institution of Economics
of Chinese Academy of Social Sciences in April 2017 to serve as a researcher, and now serves as the professor and the doctoral tutor
of economics in Chinese Academy of Social Sciences and is also the chief economist in TF Securities, a member of the council of
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2020 Annual Report of Mango Excellent Media Co., Ltd.
China Chief Economist Forum, a member of the Annuity Council of China National Petroleum Corporation and an independent
director in Bank of Jiangsu Co., Ltd.; and from January 2019 to present, he has been serving as an independent director of the
Company.
LUO Weixiong, male, Han nationality, born in November 1962, a member of the Communist Party of China, obtained a
bachelor's degree of Arts and the title of chief editor. His work experiences are as follows: the deputy director of the Managerial
Department of Hunan TV and Broadcasting Agency, the deputy director and then director of the Advertising Information Department
of Hunan TV and Broadcasting News Agency, the director of the Editor Department of Hunan Radio and TV News Agency, deputy
editor-in-chief and then chief editor of Hunan Radio and TV News Agency, the general manager of Hunan TV & Broadcast
Intermediary Co., Ltd. Advertising Branch and the director of the Advertising Operation and Management Center of Golden Eagle
Broadcasting System from April 1988 to April 2005; the deputy general manager of Golden Eagle Broadcasting System, the deputy
editor-in-chief of Hunan Provincial Radio and Television Bureau and the Editor Committee of Golden Eagle Broadcasting System
from April 2005 to March 2010; a director and the deputy general manager of Hunan TV & Broadcast Intermediary Co., Ltd. from
April 2005 to April 2012; a member of the Party Committee and the deputy head of Hunan Broadcasting System, and the director of
Operation and Industry Management Committee of Hunan Broadcasting System and a director of Mango Media Co., Ltd. from
March 2010 to June 2018; a member of the Party Committee of Golden Eagle Broadcasting System in June 2018; a member of the
Party Committee and the deputy head of Hunan Broadcasting System, and a member of the Party Committee and the deputy general
manager of Golden Eagle Broadcasting System and a director of Mango Media Co., Ltd. from July 2018 to present; and a director of
the Company from September 2019 to present.
ZHANG Yong, male, born in 1962, a member of the Communist Party of China, graduated from Zhengzhou University of
Light Industry with a bachelor’s degree of Electromechanics and was conferred the title of senior engineer. His work experiences are
as follows: the deputy director of Hunan TV’s Entertainment Channel, the director of the Program Marketing Center of Golden Eagle
Broadcasting System, the head assistant of Hunan TV, the director of the Production Dispatch Center of Hunan TV and the head
assistant of Hunan Broadcasting System from April 1984 to present; the general manager of Mango Media Co., Ltd. since May 2012;
a director of Mango Media Co., Ltd. since December 2013; the chairman since August 2017 and the chief editor since March 2018 in
Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd.; the general manager assistant of Golden Eagle Broadcasting Co.,
Ltd. since April 2019. He serves as the general manager assistant of Gold Eagle Broadcasting System Co., Ltd., a director and the
general manager of Mango Media Co., Ltd., the chairman and the chief editor of Hunan Happy Sunshine Interactive Entertainment
Media Co., Ltd.; and since May 2011, he has been acting a director of the Company (including “Happigo Co., Ltd.” as the
predecessor of the Company).
CAI Huaijun, male, born in December 1977, a member of the Communist Party of China, graduated from Accounting major of
Hunan University with a doctorate in management. His work experiences are as follows: worked in Hunan Economic TV from July
2000 and March 2002; worked in the Planning and Finance Department of Hunan TV from March 2002 to April 2004; the deputy
director at the Planning and Statistics Division of the Finance Department of Hunan TV from April 2004 to March 2006; the director
at the Planning and Statistics Division of the Finance Department of Hunan TV from March 2006 to April 2011; the deputy director
of the Mango Media Restructuring and Listing Office from April 2011 to October 2011; the deputy director of the Finance
Department of Hunan Broadcasting System from October 2011 to March 2014; the head of the Strategic Investment Department of
Mango Media Co., Ltd. from March 2014 to April 2017; the deputy general manager and the head of the Strategic Investment
Department of Mango Media Co., Ltd. from April 2017 to June 2017; the deputy general manager of Mango Media Co., Ltd., and the
chairman and the general manager of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd. from June 2017 to May 2018;
the deputy general manager of Mango Media Co., Ltd., and the secretary of the Party Committee, a director and the general manager
of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd. from May 2018 to July 2018; the secretary of the Party
Committee, a director and the general manager of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd. since July 2018;
the general manager of the Company since August 2018; a director of the Company since September 2018; the deputy secretary of
the Party Committee of the Company since November 2018; and the chief editor of the Company since April 2020..
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LIU Xin, male, born in October 1971, a member of the Communist Party of China, obtained a doctor's degree. His work
experiences are as follows: the industry solution manager, the technical team leader and the customer technical director of the Public
Utilities Department of International Business Machines (China) Co., Ltd. from August 2004 to December 2009; the deputy general
manager of the Data Department of China Mobile Communications Group Co., Ltd. from December 2009 to November 2013; the
general manager of the Data Department of China Mobile Communications Group Co., Ltd. from November 2013 to February 2015;
the secretary of the Party Committee, the chairman and general manager of MIGU Culture Technology Co., Ltd., and the chairman of
Mingu Music Co., Ltd., MIGU Video Technology Co., Ltd., Migu Digital Media Co., Ltd., Migu Interactive Entertainment Co., Ltd.
and MIGU Cartoon Co., Ltd. from November 2014 to present; a director of IFLYTEK Co., Ltd. since January 2013; a director of
China Mobile SDIC Innovation Investment Management Co., Ltd.; and a director of the Company from September 2019 to present.
TANG Liang, male, born in 1976, a member of the Communist Party of China, graduated from Hunan Normal University with
a bachelor's degree of English Education, and is studying EMBA in Hunan University. His work experiences are as follows: an editor,
editor in charge, producer, the deputy director of the News Center, and the director of Beijing Program Center of Hunan Economic
TV from June 1997 to November 2005; was sent to study at the University of Westminster, UK, funded by the government, from
November 2005 to March 2006; the deputy general manager of Happigo Co., Ltd. from March 2006 to May 2011; the deputy general
manager of Happigo Inc. from May 2011 to November 2011; the deputy executive general manager of Happigo Inc. from November
2011 to June 2014; the deputy executive general manager and a director of Happigo Inc. from June 2014 to April 2015; the general
manager and a director of Happigo Inc. from April 2015 to July 2018; the secretary of the Party Committee of Happigo Inc. from
December 2016 to July 2018; the deputy general manager of the Company from August 2018 to June 2019; a director of the
Company since August 2018; the deputy secretary of the Party Committee of the Company since November 2018; and the secretary
of the Discipline Inspection Committee of the Company since April 2020.
2. Supervisors
YANG Yun, male, born in July 1973, obtained a master's degree, an accountant. He currently serves as the head of the Finance
Department of Hunan Broadcasting System and also works as an external instructor for postgraduate students at Hunan University.
He joined Hunan Broadcasting System in 1999, and successively worked as the head and deputy director at the Finance Department
of the Entertainment Channel of Hunan Broadcasting System, the deputy general manager and the head of the Asset and Finance
Department of Mango Media Co., Ltd., with rich experience in financial management and media operations. From June 2017 to
present, he has been serving as the chairman of the board of supervisor in the Company.
LI Jiaochun, male, born in January 1964, a member of the Communist Party. He previously worked as the chief editor of the
magazine and the director of the Cultural Industry Office in Hunan Provincial Party Committee Organ., and now serves as the deputy
secretary of the Party Committee, the secretary of the Discipline Inspection Committee and the chairman of the board of supervisors
of Mango Media Co., Ltd.; and since June 2017, he has been serving as a supervisor of the Company.
FANG Fei, male, born in December 1985, a member of the Communist Party of China, obtained a master's degree. He
successively served as the planning director of the Advertising Department under the Advertising Operation and Management Center
of Hunan Broadcasting System; a director of the Integrated Marketing Department under the Advertising Marketing Center and the
senior director, general manager and assistant president of the Advertising Marketing Center of Hunan Happy Sunshine Interactive
Entertainment Media Co., Ltd. He is now the deputy general manager of Hunan Happy Sunshine Interactive Entertainment Media
Co., Ltd.; a director and general manager of Horgos Happy Sunshine Media Co., Ltd.; and a director and general manager of Happy
Sunshine Xingmang Interactive Entertainment Media Co., Ltd. Since August 2020, he has been serving as an employee supervisor of
the Company.
3. Officers (Other than those who currently work as a director)
HE Jin, female, born in April 1971, a member of the Communist Party of China, a master of Statistics and Risk Management,
University of South Australia. Her work experiences are as follows: worked in Hunan KAMP Medical and Health Products Co., Ltd.
from September 1991 to January 1993; worked in Hainan Juchuan Industry Company and Suzhou Shihu Development Co., Ltd. from
January 1993 to October 1995; worked in Hunan Economic TV from October 1995 to March 2003 (concurrently worked as the
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secretary of the Youth League Committee of Hunan Economic TV from July 2000 and March 2003); the manager of the Finance
Department of Changsha Colorful World Co., Ltd. from March 2003 to December 2004; the deputy director of the Finance
Department of Hunan Economic TV from December 2004 to March 2006; the deputy general manager of Hunan Jingshi Cultural
Communication Co., Ltd. from March 2006 to December 2007; the vice chairman of the Trade Union of Hunan Economic TV from
December 2007 to August 2010; the general manager of Hunan Jingshi Cultural Communication Co., Ltd. from August 2010 to May
2012; the general manager of Hunan Jingshi Cultural Communication Co., Ltd. from May 2012 to June 2015; the general manager of
Mango Studios Culture Co., Ltd. since June 2015; the deputy general manager of the Company since August 2018; and a member of
the Party Committee of the Company from November 2018.
ZHENG Huaping, male, born in October 1976, a member of the Communist Party of China, graduated from Central South
University with a master's degree of Philosophy. His work experiences are as follows: the reporter of the News Center of Hunan TV
from June 2000 to December 2004; the director of the Golden Eagle Cartoon Channel Administration Department of Hunan TV from
December 2004 to March 2006; worked in the Planning and Promotion Department of the Chief Editor Office of Hunan TV from
March 2006 to December 2006; the director of the Planning and Promotion Department of the Chief Editor Office of Hunan TV from
December 2006 to April 2011; the deputy director of Mango Media Restructuring and Listing Office and the deputy director of the
Chief Editor Office of Hunan Satellite TV Channel from April 2011 to October 2011; the deputy director of the Program Transaction
Management Center of Hunan Broadcasting System from October 2011 to August 2014; the joint general manager of Shanghai
Mangofun Technology Co., Ltd. and the chairman of Hunan Happy Mangofun Technology Co., Ltd. from August 2014 to April 2016;
the general manager of Shanghai Mangofun Technology Co., Ltd. and chairman of Hunan Happy Mangofun Technology Co., Ltd.
from April 2016 to October 2017; the deputy general manager of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd.,
the chairman and general manager of Shanghai Mangofun Technology Co., Ltd. and the chairman of Hunan Happy Mangofun
Technology Co., Ltd. from October 2017 to September 2019; the deputy general manager of Hunan Happy Sunshine Interactive
Entertainment Technology Co., Ltd. since September 2019; the deputy general manager of the Company since August 2018; and a
member of the Party Committee of the Company from November 2018.
WANG Ke, male, born in March 1979, a member of the Communist Party of China, graduated from Cheung Kong Graduate
School of Business with MBA. His work experiences are as follows: the reporter, program coordinator and production manager of
Hunan TV's Cultural and Sports Channel from June 2001 to January 2004; the deputy director of the Performance Department of
Hunan TV's Entertainment Channel from January 2004 to April 2005; the director of the Artists Development Department of
Shanghai EE-Media Co., Ltd. from April 2005 to October 2005; the deputy general manager of Shanghai EE-Media Co., Ltd. from
October 2005 to July 2014 (studied EMBA at Cheung Kong Graduate School of Business from September 2008 to May 2010); the
deputy general manager of Hunan Mango Entertainment Co., Ltd. from July 2014 to August 2017 (a member of the Party Committee
of Entertainment Channel of Hunan Broadcasting System from November 2006 to August 2017); the general manger of Beijing
Happy Mango Cultural Media Co., Ltd. since July 2014; the general manager of Hunan Mango Entertainment Co., Ltd. Since August
2017 (a member of the Party Committee of the Entertainment Channel of Hunan Broadcasting System from August 2017 to January
2018, a member of the CPC General Branch of Hunan Mango Entertainment Co., Ltd. from July 2018 to January 2019 and the
secretary of the CPC General Branch of Hunan Mango Entertainment Co., Ltd. since January 2019); the deputy general manager of
Mango Excellent Media Co., Ltd. since August 2018; a member of the Party Committee of Mango Excellent Media Co., Ltd. from
November 2018.
LIANG Deping, male, born in February 1979, a member of the Communist Party of China, graduated from Changsha
University of Science and Technology with MBA. His work experiences are as follows: the accounting head of the Finance
Department of Entertainment Channel of Hunan Broadcasting System from August 1998 to October 2004; the deputy director of the
Finance Department of Hunan TV's Entertainment Channel from October 2004 to January 2008; the director of the Finance
Department of Hunan TV’s Entertainment Channel from January 2008 to January 2013 (studied the MBA in Changsha University of
Science and Technology from March 2009 to January 2012); the director assistant and the head of the Finance Department of the
Entertainment Channel of Hunan Broadcasting System from January 2013 to April 2013; the director assistant of the Entertainment
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Channel of Hunan Broadcasting System, the head of the Finance Department and the head of the Production Department of the
Entertainment Channel of Hunan Broadcasting System from April 2013 to April 2014; the deputy director of Entertainment Channel
of Hunan Broadcasting System from April 2014 to November 2014; the deputy director of Entertainment Channel of Hunan
Broadcasting System and the deputy general manager of Hunan Mango Entertainment Co., Ltd. from November 2014 to October
2017; the deputy director of Entertainment Channel of Hunan Broadcasting System and the deputy general manager of Hunan Mango
Entertainment Co., Ltd. from October 2017 to July 2018; the deputy general manager of Hunan Happy Sunshine Interactive
Entertainment Media Co., Ltd. since October 2017; an executive director of Hunan Happy Money Microfinance Co., Ltd. since May
2019; an executive director of Shanghai Mangofun Technology Co., Ltd. from September 2019 to January 2021; the deputy general
manager of and the finance director of the Company since August 2018; and a member of the Party Committee of the Company since
November 2018.
WU Jun, female, born in February 1983, a member of the Communist Party of China, obtained a doctor's degree. She
successively served as the reporter and editor in charge for Hunan News Network of Hunan TV, and the deputy manager of HR
Department, the director of the General Manager Office and the secretary of CPC Branch of Mango Media Co., Ltd. from June 2007;
she has been working as the director of Board Office of Mango Excellent Media Co., Ltd. from August 2018 to present and since
April 2019, been working as the secretary of the board of director of the Company.
Positions in shareholder entities
√ Applicable □ N/A
If receive
Position(s) in the Commence End date of remunerations or
Name Shareholder entity
shareholder entity date of tenure tenure allowances from the
shareholder entity
ZHANG Huali Mango Media Co., Ltd. Chairman
LUO Weixiong Mango Media Co., Ltd. Director
Mango Media Co., Ltd. Director and general
ZHANG Yong
manager
Deputy secretary of the
Party Committee, the
secretary of the Discipline
LI Jiaochun Mango Media Co., Ltd.
Inspection Committee and
the chairman of the board
of supervisors
HE Jin Mango Media Co., Ltd. Supervisor
Positions in other entities
√ Applicable □ N/A
If receive
Position(s) in
Commence End date of remunerations or
Name Other entity the other
date of tenure tenure allowances from the
entity
shareholder entity
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Secretary of
the Party
ZHANG Huali Hunan Broadcasting System
Committee,
chairman
Secretary of
Golden Eagle Broadcasting System Co., the Party
ZHANG Huali
Ltd. Committee,
chairman
Associate
researcher,
and director
ZHONG Institute of Law, Sichuan Academy of of Financing
Hongming Social Sciences Law
Government
Research
Office
ZHONG Independent
Dagang Holding Group Co., Ltd.
Hongming director
ZHONG Independent
FIYTA Precision Technology Co., Ltd.
Hongming director
Professor,
and head of
School of Economics and Management of the
XIAO Xing
Tsinghua University Department
of
Accounting
XIAO Xing Deputy
Global Private Equity Research Institute of
executive
Tsinghua University
dean
XIAO Xing National Accounting Professional Master
Member
Education Steering Committee
XIAO Xing Accounting Teaching Steering Committee
Member
of the Ministry of Education
XIAO Xing Independent
Agricultural Bank of China Co., Ltd.
director
XIAO Xing Bloomage Biotechnology Corporation Independent
Limited director
Professor and
LIU Yuhui Chinese Academy of Social Sciences doctoral
supervisor
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2020 Annual Report of Mango Excellent Media Co., Ltd.
LIU Yuhui Chief
TF Securities Co., Ltd.
economist
LIU Yuhui Member of
China Chief Economist Forum
the council
LIU Yuhui Annuity Council of China National Member of
Petroleum Corporation the council
LIU Yuhui Independent
Bank of Jiangsu Co., Ltd.
director
Member of
the Party
LUO Weixiong Hunan Broadcasting System Committee
and deputy
head
Member of
the Party
Golden Eagle Broadcasting System Co., Committee
LUO Weixiong
Ltd. and deputy
general
manager
Executive
ZHANG Yong Shanghai EE-Media Co., Ltd.
director
ZHANG Yong Hunan Happy Sunshine Interactive Chairman of
Entertainment Media Co., Ltd. the board
ZHANG Yong Yize Capital Management Co., Ltd. Director
Secretary of
the Party
LIU Xin MIGU Culture Technology Co., Ltd.
Committee
and chairman
LIU Xin IFLYTEK Co., Ltd. Director
LIU Xin China Mobile SDIC Innovation Investment
Director
Management Co., Ltd.
Head of the
Asset and
YANG Yun Hunan Broadcasting System
Finance
Department
External
instructor for
YANG Yun Hunan University
postgraduate
students
Penalty by regulators to the Company’s current directors, supervisors, and officers, including those resigned in the Reporting Period,
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in recent three years
□ Applicable √ N/A
IV. Remuneration of directors, supervisors, and officers
Decision-making process, determination basis and actual payment of remuneration of directors, supervisors, and officers,
For independent directors, their remunerations are paid subject to the resolution of the shareholders' meeting; for officers, their
remunerations are determined by the board of directors; for directors, supervisors and officers who hold positions in the Company,
their remunerations are paid by the company; and for directors and supervisors, the Company do not pay allowances separately.
Total remuneration of directors, supervisors and officers received during the Reporting Period
In: RMB0'000
Whether or not
Total
receiving
remunerations
remunerations
Name Position Gender Age Status received from the
from the related
Company
parties of the
(including tax)
Company
Chairman of the
ZHANG Huali Male 56 Current 0 Yes
board
ZHONG Independent
Male 46 Current 22 No
Hongming director
Independent
XIAO Xing Female 49 Current 22 No
director
Independent
LIU Yuhui Male 50 Current 22 No
director
LUO Weixiong Director Male 58 Current 0 Yes
ZHANG Yong Director Male 58 Current 0 Yes
Director and Male
CAI Huaijun 43 Current 700 No
general manager
LIU Xin Director Male 49 Current 0 Yes
TANG Liang Director Male 44 Current 256 No
Chairman of the Male
YANG Yun board of 47 Current 0 Yes
supervisors
LI Jiaochun Supervisor Male 56 Current 0 Yes
Employee Male
FANG Fei 35 Current 650 No
supervisor
Deputy general Female
HE Jin 49 Current 319.4 No
manager
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Deputy general Male
ZHENG Huaping 44 Current 449 No
manager
Deputy general Male
WANG Ke 41 Current 320 No
manager
Deputy general Male
LIANG Deping manager and 41 Current 450 No
finance director
Secretary of the
WU Jun Female 37 Current 256 No
board of directors
Employee
JIANG Qian Female 50 Former 68.39 No
supervisor
Deputy general Female
XIAO Ning 52 Former 186.7 No
manager
Total -- -- -- -- 3,721.49 --
Equity incentives awarded to the Company’s directors and officers
□ Applicable √ N/A
V. Employees
1. Employees and their composition by specialization and education background
Employees of the parent company (person) 28
Employees of main subsidiaries (person) 4,443
Total of employees on active duty (person) 4,471
Total of employees receiving remuneration for the current period
4,471
(person)
Retired employees whose expense is undertaken by parent
2
company and main subsidiaries (person)
Composition of employees by specialization
Areas of specialization Headcounts
Production personnel 1,480
Sales personnel 1,758
Technical personnel 780
Finance personnel 121
Administrative personnel 332
Total 4,471
Composition of employees by education background
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Education background Headcount
Doctorate 5
Master’s degree or above 548
Bachelor’s degree 2,664
Junior college or below 1,254
Total 4,471
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 Trial
Measures of Gross Payroll 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 productivity, 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 to strengthen the management ability of middle and senior staff, improve the professional
ability of key personnel and the job skills of basic staff. In terms of content, 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 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 the Company's brand as
an employer and employees' sense of belonging.
4. Outsourcing
√ Applicable □ N/A
Total outsourced working hours (in hour) 906,548
Total compensation paid for outsourced work (in RMB) 36,778,400.00
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2019 Annual Report of Mango Excellent Media Co., Ltd.
Section X Governance
I. Basic introduction
During the Reporting Period, in accordance with the relevant requirements of laws and regulations such as the Company Law,
the Securities Law, the Code of Corporate Governance of Listed Companies, the Rules Governing the Listing of Shares on the
ChiNext Market of Shenzhen Stock Exchange, and Guidelines for the Standardized Operation of Listed Companies on the ChiNext of
the Shenzhen Stock Exchange, the Company has continuously improved its corporate governance structure under established sound
internal management and control system and continuous in-depth corporate governance activities to promote the normative operation
of the Company and improve its corporate governance. In response to the latest requirements from regulators, the Company has
amended the Articles of Association, Rules of Procedure for the Board of Directors, and other institutional documents subject to its
actual changes during the Reporting Period, so as to provide a more improved institutional protection for the normative operation of
the Company. As of the end of the Reporting Period, the Company’s actual governance is in compliance with the Code of Corporate
Governance of Listed Companies and Guidelines for the Standardized Operation of Listed Companies on the ChiNext of the
Shenzhen Stock Exchange.
1. Shareholders and the general meetings of shareholder
The Company convenes and holds general meetings of shareholder in strict accordance with provisions as required by the
Articles of Association and the Rules of Procedure for the Shareholders' Meetings, treating all shareholders equally and facilitating
shareholders' participation in general meetings of shareholder as far as possible to ensure they can fully exercise their shareholders'
rights.
2. The Company and the controlling shareholder
The controlling shareholder of the Company strictly regulates its own conduct without any direct or indirect interference to the
Company's decision-making and business activities beyond the general meeting of shareholders. The Company has independent and
complete businesses and is able to operate independently. It is independent of the controlling shareholders in terms of business,
personnel, assets, institutions, and finances, which is evidenced by independent operations of the Company's board of directors,
board of supervisors and internal institutions.
3. Directors and the boards of directors
The Board of Directors of the Company consists of 9 directors, including 3 independent directors. Members and the composition
thereof are in line with the requirements of relevant laws and regulations and the Articles of Association. Each director is able to
carry out their work and attend the Board of Directors and general meetings of shareholders in accordance with the Company Law,
Guidelines for the Standardized Operation of Listed Companies on the ChiNext of the Shenzhen Stock Exchange, the Articles of
Association, and the Rules of Procedure for the Board of Directors, as to perform their duties and obligations diligently and
conscientiously. Meanwhile, they can actively participate in relevant trainings and become familiar with relevant laws and
regulations. The procedures for convening and holding board meetings comply with the requirements of relevant regulations. The
meeting minutes of the Board of Directors are true, accurate, and complete, and kept in safety. Resolutions made in the meeting of
the Board of Directors are disclosed in a timely manner.
4. Supervisors and the board of supervisors
The Board of Supervisors of the Company consists of 3 supervisors, including 1 employee supervisor. Members and the
composition thereof are in line with the requirements of relevant laws and regulations. During the Reporting Period, each supervisor
can conscientiously perform their duties in accordance with the requirements of the Rules of Procedure for the Board of Supervisors,
supervising the legality and compliance of the Company's significant matters, related-party transactions, insider, internal control,
financial position, and the execution of duties of directors and officers.
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2019 Annual Report of Mango Excellent Media Co., Ltd.
5. Establishment and implementation of the internal audit system
The Audit Committee under the Board of Directors is responsible for communication, supervision, organization of meetings and
verification with respect to the internal and external audits of the Company. The Audit Department under the Audit Committee is its
executing agency which inspects and supervises the establishment and implementation of the Company's internal control system and
the authenticity and integrity of the Company's financial information, etc.
6. Performance evaluation and incentive binding mechanisms
The Committee for Remuneration and Appraisal under the Board of Directors of the Company is responsible for formulation of
remuneration policies, determination of remuneration proposal, and remuneration appraisal of officers. The Company has established
an incentive system for enterprise performance evaluation, according to which the income of operators is linked to the business
performance, and the officers is employed in an open and transparent way subject to provisions of laws and regulations.
7. Information disclosure and transparency
The Company discloses relevant information in a true, accurate, timely, fair and complete manner in strict accordance with
relevant laws and regulations and the requirements of the Information Disclosure Management System and the Investor Relations
Management System, and designates the Secretary of the Board of Directors of the Company to be responsible for information
disclosure, coordination of the Company's relationship with investors, reception of shareholders’ visits, response to investor inquiries
from various channels such as the interactive platform and telephone in a timely manner, and supply of information disclosed by the
Company to investors. The Company also designates several websites and newspapers including www.cninfo.com.cn, China
Securities Journal, Shanghai Securities News, Securities Times and Securities Daily to disclose its information. The Company’s
disclosure of relevant information is made in a true, accurate, complete, and timely manner subject to relevant laws and regulations
and the requirements of the Information Disclosure Management System, as to ensure all shareholders are equally accessible to
information of the Company.
8. Stakeholders
The company fully respects and protects the legitimate rights and interests of relevant stakeholders to balance interests of
shareholders, employees, partners, the society, and others in an effort to promote the sustainable and healthy development of the
Company.
Whether there is any material difference between the Company’s actual governance and that stated in the normative documents on
the governance of listed companies issued by the CSRC
□ Yes √ No
There is no material difference between the Company’s actual governance and that stated in the normative documents on the
governance of listed companies issued by the CSRC.
II. The Company’s independence from its the controlling shareholder in terms of business,
personnel, assets, institutions, and finances
The Company is independent from the controlling shareholder and the de facto controller of the Company in terms of business,
personnel, assets, institutions, and finances. The Company’s controlling shareholder, de facto controller and their related parties have
not appropriated the company's funds illegally, nor required the Company to provide guarantees in violation of laws and regulations.
1. Business: As an independent legal entity under self-management, the Company has independent and complete businesses
and is able to operate independently.
2.Personnel: The Company has set up an independent human resource management department and established a series of
human resource management systems according to which the general manager, the deputy general manager, the financial director, the
secretary of the board of directors and other officers are paid by the Listed Company during their tenure.
3. Separation of assets: The Company has completed assets with clear property rights, and independent procurement,
production, sales systems and supporting facilities.
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2019 Annual Report of Mango Excellent Media Co., Ltd.
4. Institution: The Company has owned an organizational structure that meets its development needs and independent operation
requirements, with functional departments operating independently from those of the controlling shareholders.
5. Finance: The Company has set up an independent financial department with independent accounting system and financial
management system. The Company also opens separate bank accounts and pays taxes independently as required by laws.
III. Horizontal competition
□ Applicable √ N/A
IV. Description of annual and extraordinary general meetings of shareholders during the
Reporting Period
1. Description of general meetings of shareholders during the Reporting Period
Ratio of
Sequence Type participating Convening date Disclosure date Disclosure index
investors
Announcement of the Resolution
2019 annual general Annual general of the 2019 Annual General
meeting of meeting of 80.71% June 22, 2020 Meeting of Shareholders
June 23, 2020
shareholders shareholders (2020-032) at
http://www.cninfo.com.cn/
Announcement of the Resolution
The first
Extraordinary of the First Extraordinary General
extraordinary
general meeting 77.41% October 23, 2020 October 24, 2020 Meeting of Shareholders in 2020
general meeting of
of shareholders (2020-062) at
shareholders in 2020
http://www.cninfo.com.cn/
Announcement of the Resolution
The second
Extraordinary of the Second Extraordinary
extraordinary
general meeting 79.48% December 24, 2020 December 25, 2020 General Meeting of Shareholders
general meeting of
of shareholders in 2020 (2020-084) at
shareholders in 2020
http://www.cninfo.com.cn/
2. Extraordinary general meetings of shareholders required by preferred shareholders with voting rights
□ Applicable √ N/A
V. Execution of duties by independent directors during the Reporting Period
1. Independent directors’ attendance at meetings of the board of directors and the general meetings of
shareholders
Independent directors’ attendance at meetings of the board of directors and the general meetings of shareholders
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2019 Annual Report of Mango Excellent Media Co., Ltd.
Number of
Whether
attendances at Number of
absent from
Name of meetings of attendances at
Through Through attendance in
independent the board of On site Absence general
communications entrustment person for two
director directors meetings of
consecutive
during the shareholders
times
Reporting
Period
ZHONG
7 1 6 0 0 No 2
Hongming
XIAO Xing 7 1 6 0 0 No 0
LIU Yuhui 7 1 6 0 0 No 2
Description of two consecutive absences at meetings of the board of directors
2. Description of dissents by independent directors for matters of the Company
Whether independent directors put forward any dissent for matters of the Company
□ Yes √ No
The independent directors have no dissent for matters of the Company during the Reporting Period.
3. Other descriptions on execution of duties by the independent directors
Whether the Company adopts any recommendation from the independent directors
□ Yes √ No
Description of adopting or refusing to adopt a recommendation from independent directors
During the Reporting Period, the independent directors of the Company have performed their duties diligently, independently
and conscientiously in accordance with the relevant provisions of the Guiding Opinions on Establishing the Independent Director
System in Listed Companies, the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock Exchange and the
Articles of Association by attending the meetings of the board of directors, the general meetings of shareholders as well as meetings
held by special committees under the board of directors. Before attending these meetings, they actively understood and obtained the
information required for decision-makings, and at these meetings, they carefully considered each proposal, actively participated in
discussions, and provided rationalization proposals. They have expressed independent, impartial, and objective opinions on
significant matters of the Company such as production and operation, financial management, internal control and related-party
transactions, and played an appropriate role in safeguarding the legitimate rights and interests of all shareholders, especially minority
shareholders. During the Reporting Period, the Company adopted all reasonable recommendations from the independent directors.
VI. Execution of duties by special committees under the board of directors during the
Reporting Period
1. Strategy Committee
The Strategy Committee met once during the Reporting Period, with the specific date of meeting and matters for deliberation
stated as below:
On September 25, 2020, the first session of the Strategy Committee under the third Board of Directors in 2020 was held, at
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2019 Annual Report of Mango Excellent Media Co., Ltd.
which the following proposals were deliberated the approved: the Proposal on Exempting the Notice Period for the First Meeting of
the Strategy Committee under the Third Board of Directors in 2020, the Proposal on the Eligibility of Mango Excellent Media Co.,
Ltd. for Issuing A Shares to Specific Offerees, the Proposal on the Plan of Issuance by Mango Excellent Media Co., Ltd. of A Shares
to Specific Offerees in 2020, the Proposal on the Pre-arranged Plan of Issuance by Mango Excellent Media Co., Ltd. of A Shares to
Specific Offerees in 2020, the Proposal on the Argumentation and Analysis Report Concerning the Plan of Issuance by Mango
Excellent Media Co., Ltd. of A Shares to Specific Offerees in 2020, and the Proposal on the Feasibility Study Report Concerning the
Uses of Proceeds from the Issuance by Mango Excellent Media Co., Ltd. of A Shares to Specific Offerees in 2020.
2. Audit Committee
During the Reporting Period, the Audit Committee held a total of 5 meetings, with the specific dates of meetings and matters for
deliberation stated as below:
On January 17, 2020, the first session of the Audit Committee under the third Board of Directors in 2020 was held, at which the
following were deliberated and approved: The Annual Internal Audit of the Company for 2020, the Audit Plan of 2019 Annual Report
(Pan-China) and the Proposal on the Audit Report for Implementing Internal Control by Mango Studios Cultural Co., Ltd. over
Monetary Funds in 2019; and the Audit Department’s Summary on Audit in 2019 and Plan for 2020 Audit was reviewed.
On April 10, 2020, the second session of the Audit Committee under the third Board of Directors in 2020 was held, at which the
following proposals were deliberated and approved: The Proposal on the Company’s 2019 Annual Audit Report, the Proposal on the
Company’s 2019 Internal Control Self-evaluation Report, the Proposal for the Company's 2019 Special Report on the Deposit and
Use of Funds Raised, and the Proposal for the Company's 2019 Performance Commitment;
On April 17, 2020, the third session of the Audit Committee under the third Board of Directors in 2020 was held, at which the
Proposal on the Company's 2020 Q1 Financial Report and the Proposal on Changes in Accounting Standards were deliberated and
approved; the Proposal for the Company's 2020 Q1 Special Report on Funds Raised, and the Proposal on the Audit Report for
Implementing Internal Control by Happy Purchase Limited Liability Company over Monetary Funds in 2020 were reviewed and
approved; and the Audit Department's Summary on 2020 Q1 Audit and Plan for 2020 Q2 Audit was reviewed;
On August 18, 2020, the fourth session of the Audit Committee under the third Board of Directors in 2020 was held, at which
the Proposal on the Company's 2020 Semi-Annual Financial Report and the Proposal for the Company's 2020 Semi-Annual Special
Report on the Deposit and Use of Funds Raised were deliberated and approved; the Proposal on the Audit Report for Implementing
Internal Control by Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd. over Monetary Funds in 2020 was reviewed
and approved; and the Audit Department's Summary on 2020 Q2 Audit and Plan for 2020 Q3 Audit was reviewed;
On October 21, 2020, the fifth session of the Audit Committee under the third Board of Directors in 2020 was held, at which the
Proposal on the Company's 2020 Q3 Financial Report and the Proposal on Further Employing the Accounting Law Firm were
deliberated and approved; the Proposal for the Company's 2020 Q3 Special Report on the Deposit and Use of Funds Raised and the
Proposal on the Audit Report for Implementing Internal Control by Shanghai E.E. Media Co., Ltd. over Monetary Funds in 2020
were reviewed and approved; and the Audit Department's Summary on 2020 Q3 Audit and Plan for 2020 Q4 Audit was reviewed.
3. Nomination Committee
During the Reporting Period, the Nomination Committee met once, with the specific date of meeting and matters for
deliberation stated as below:
On July 15, 2020, the first session of the Nomination Committee under the third Board of Directors in 2020 was held, at which
the Proposal on Exempting the Notice Period for the First Meeting of the Nomination Committee under the Third board of Directors
in 2020, the Proposal on the Nomination of Non-independent Director Candidates for the Fourth Board of Director and the Proposal
on the Nomination of the Independent Director Candidates for the Fourth Board of Director were deliberated and approved.
4. Remuneration and Appraisal Committee
During the Reporting Period, the Remuneration and Appraisal Committee met once, with the specific date of meeting and
matters for deliberation stated as below:
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On April 23, 2020, the first session of the Remuneration and Appraisal Committee under the third Board of Directors in 2020
was held, at which the Proposal on 2019 Annual Remuneration and 2020 Annual Remuneration Appraisal Program for the
Company's Officers was deliberated and approved.
VII. Work of the Board of Supervisors
Whether the Board of Supervisors detect the Company is exposed to any risk through its supervision activities during the Reporting
Period
□ Yes √ No
The Company’s Board of Supervisors has no dissent to matters under supervision during the Reporting Period.
VIII. Appraisal and incentive of the officers
For the purpose of further improving the binding mechanism for incentive of the Company's officers and fully mobilize their
enthusiasm and creativity, the Company has formulated the Management Measures for the Annual Performance Appraisal of
Officers of Mango Excellent Media Co., Ltd. pursuant to the Articles of Association of Mango Excellent Media Co., Ltd. and the
Detailed Rules of Work for the Remuneration and Appraisal Committee of the Board of Directors of Mango Excellent Media Co.,
Ltd., as to standardize the performance management of the Company's performance objectives and to conduct objective and fair
examination and assessment on the value creation process and results of the officers. Annual salaries to the Company’s officers are
composed of two parts, “basic annual salary” and “annual performance bonus”, in which the “annual performance bonus” should
account for 60 % at least, and closely linked to the annual performance appraisal results of the officers.
IX. Internal control evaluation report
1. Details of material internal control deficiencies identified during the Reporting Period
□ Yes √ No
2. Internal control self-evaluation report
Disclosure date April 26, 2021
Index of disclosure http://www.cninfo.com.cn/
Proportion of the total assets of the entities
included in the evaluation scope to the total
100.00%
assets recorded in the Company’s
consolidated financial statements
Proportion of the operating income of the
entities included in the evaluation scope to
the operating income recorded in the 100.00%
Company’s consolidated financial
statements
Identification Standard of Deficiencies
Type Financial Report Non-financial Report
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1. General deficiencies: other internal
control deficiencies under the threshold of
material weakness and significant
1. General deficiencies: other internal
deficiencies. 2 significant deficiencies: the
control deficiencies under the threshold
selection and application of accounting
of material weakness and significant
policies inconsistent with the generally
deficiencies. 2. Significant deficiencies:
accepted accounting standards; the absence
general mistakes resulting from
of anti-fraud procedures and control
decision-making procedures; violation of
measures; the absence of appropriate control
internal rules and regulations, resulting
mechanisms, the absence of compensatory
in losses; deficiencies in significant
controls or failure in the implementation
business mechanisms or systems;
thereof for the accounting treatment of
significant or general deficiencies in
irregular or special transactions; the
internal control that have not been
existence of one or more deficiencies in the
Qualitative standard rectified. 3. Material weakness:
control of the financial reporting process at
significant mistakes due to lack of
the end of the period and the absence of
democratic decision-making procedures
reasonable assurance that the financial
or unscientific decision-making
statements prepared are true and accurate. 3.
procedures, resulting in significant
Material weakness: fraud acts of the
property losses to the Company; serious
Company’s directors, supervisors, or
violations of national laws and
officers; correction of published financial
regulations; lack of significant business
reports by the Company, and material
mechanisms, or ineffectiveness of
misstatements in the current financial reports
implementation thereof; continuous or a
detected by the certified public accountants
large quantity of significant internal
but not identified by the Company's internal
control deficiencies in the Company.
control process; ineffective supervision by
the Audit Committee and the internal audit
institution on internal control.
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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
1. General deficiencies: direct property
consolidated operating income <0.5%. 2.
loss subsequent to consolidation <0.5%
Significant deficiencies, 3% ≤ potential
of total assets of the Company; 2.
misstatement of total consolidated profit
Significant deficiencies: 0.5% of total
<5%, 0.5% ≤ potential misstatement of total
assets of the Company ≤ direct property
Quantitative standard consolidated owner's equity <1%, 0.5% ≤
loss subsequent to consolidation <1% of
potential misstatement of total consolidated
total assets of the Company; 3. Material
assets <3%, 0.5% ≤ potential misstatement
weakness: 1% of total assets of the
of total consolidated operating income <1%.
Company ≤ direct property loss
3. Material weakness, potential misstatement
subsequent to consolidation.
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
income ≥1%.
Number of material weakness of financial
0
reports (piece)
Number of material weakness of
0
non-financial reports (piece)
Number of significant deficiencies of
0
financial reports (piece)
Number of significant deficiencies of
0
non-financial reports (piece)
X. Audit or assurance report of internal control
Internal control verification report
The comment-related content in the internal control verification report
Mango Excellent Media Co., Ltd. has maintained effective internal control over financial reporting in all material respects a s of
December 31, 2020 in accordance with the Guidelines for the Standardized Operation of Listed Companies in Shenzhen Stock
Exchange (Revised in 2020).
Disclosure of the report Disclosed
Full text of the report was disclosed on April 26, 2021
Disclosure index for the full text of the
http://www.cninfo.com.cn/
report
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2019 Annual Report of Mango Excellent Media Co., Ltd.
Comment type of the report Unmodified opinion
Whether there is a material defect in the
No
non-financial report
Whether the accounting firm issues an internal control verification report with non-standard opinion
□ Yes √ No
Whether the internal control verification report issued by the accounting firm is consistent with the self-evaluation report made by the
board of directors
√ Yes □ No
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2019 Annual Report of Mango Excellent Media Co., Ltd.
Section Ⅺ Corporate Bonds
Whether the Company has any corporate bonds that are publicly issued and listed on the stock exchange, but not matured or
redeemed in full on mature date as of the date of approval of the annual report
No
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Section XII Financial Report
I. AUDITOR’S REPORT
Audit opinion Unmodified Opinion
Signing date of audit report April 22, 2021
Auditor Pan-China Certified Public Accountants LLP
Auditor report document number Tian Jian Shen [2021] No. 2-227
Name of certified public accountants LI Xinkui and ZHANG Hong
Auditor’s Report
I. Audit opinion
We have audited the financial statements of Mango Excellent Media Co., Ltd. (“Mango
Excellent Media”), which comprise the consolidated and the company’s balance sheets as at
December 31, 2020, and the consolidated and the company’s income statements, the consolidated
and the parent company’s statements of cash flow and the consolidated and the 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 company’s financial position as of December 31, 2020, and the consolidated and the
company’s operating results and cash flows for the year then ended.
II. Basis for Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public
Accountants of China. 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 Certified
Public Accountants, 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 (XXII), V(II)1 and XIII to the
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2020 Annual Report of Mango Excellent Media Co., Ltd.
financial statements.
The operating income of Mango Excellent Media is mainly from new media platform
operation, new media interactive entertainment content production and media retail businesses, etc.
In 2020, the operating income of Mango Excellent Media amounted to RMB14,005,535,000.00, of
which the operating income from the segments including new media platform operation and new
media interactive entertainment content production amounted to RMB11,827,906,500.00,
accounting for 84.45% thereof.
As the operating income is one of Mango Excellent Media’s KPIs, there may be an inherent
risk that the management of Mango Excellent Media (hereinafter referred to as “management”) may
recognize the revenue inappropriately to achieve specific objectives or expectations. Meanwhile,
revenue recognition also needs complex information systems and significant management
judgement. Therefore, we identified revenue recognition as a key audit matter.
2. Audit response
For revenue recognition, our audit procedures include, inter alia:
(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 provisions or conditions thereof, and
evaluate whether revenue recognition methods are proper;
(4) Implement substantive analysis procedures for operating income 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, final statements, 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 incomes recognized about the balance sheet date
to evaluate whether the operating incomes 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
(9) Check whether information relating to operating income is properly presented and
disclosed in the financial statements.
(II) Impairment of accounts receivable
1. Descriptions
Details of relevant information are disclosed in Note III (X), V(I)3 and V(II)10 to the financial
statements.
As of December 31, 2020, the Mongo Excellent Media Company’s gross carrying amount of
accounts receivable amounted to RMB3,124,103,900.00, the provision for bad debts amounted to
RMB147,407,200.00 and the carrying amount amounted to RMB2,976,696,700.00.
In view of credit risk characteristics of each account receivable, the management measures its
loss provision based on the single account receivable or a combination of account receivables and
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2020 Annual Report of Mango Excellent Media Co., Ltd.
with reference to the expected credit loss amount within the entire duration. For receivables whose
expected credit losses are measured on a single basis, the management comprehensively considers
reasonable and well-founded information about past events, current conditions, and predictions of
future economic conditions, estimates the expected cash flows, and accordingly determines the
provisions for bad debts to be accrued; for receivables whose expected credit losses are measured
on a combination basis, the management divides the combination based on aging and adjusts it with
reference to historical credit loss experience and based on forward-looking estimates, prepares the
comparison table of between the aging of accounts receivable and expected credit loss ratio, and
accordingly determines the provision for bad debts to be accrued.
The amount of accounts receivable is material, and the impairment of accounts receivable
involves significant management judgment, therefore, we identified accounts receivable as a critical
audit matter.
2. Audit response
For impairment of accounts receivable, our audit procedures include, inter alia:
(1) Understand the key internal controls related to impairment of accounts receivable, evaluate
the effectiveness of their design and implementation, determine whether they are implemented, and
test the operational effectiveness of the relevant internal controls;
(2) Review the subsequent actual write-off or reversal of accounts receivable for which a
provision for bad debts was made in prior years, and evaluate the accuracy of management’s
previous projections;
(3) Review the considerations and objective evidence related to the management’s evaluation
of credit risks of accounts receivable and evaluate whether the management has adequately
identified the credit risk characteristics of accounts receivable;
(4) For accounts receivable for which the expected credit loss has been measured on a single
basis, obtain, and review the management’s projections on estimated cash flows that can be
received, evaluate the reasonableness of the key assumptions and the accuracy of the data used in
the projections, and check them with the external evidence obtained;
(5) For accounts receivable for which the expected credit loss has been measured by group,
evaluate the reasonableness of the classification of groups by the management subject to credit risk
characteristics; evaluate the reasonableness of the matching relationship between the aging of
accounts receivable and the expected credit loss rates determined by the management based on
historical experience on credit loss and forward-looking estimation; and test the accuracy and
completeness of the data used by the management and the accuracy of the management’s
calculation of the provisions for bad debt.
(6) Review the post-period recovery of accounts receivable and evaluate the reasonableness of
the management's provisions for bad debts on accounts receivable; and
(7) Check whether information relating to impairment of accounts receivable 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 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
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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 (hereinafter referred to as “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 can 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 that 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, but not for the purpose to express opinions on
the effectiveness of internal control.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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.
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.
In: RMB
Item December 31, 2020 December 31, 2019
Current Assets:
Cash and bank balances 5,336,319,786.70 5,064,224,581.46
Balances with clearing agencies
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Placements with banks and other
financial institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 95,456,357.50
Accounts receivable 2,976,696,672.95 2,997,010,508.82
Receivable financing 164,410,000.00
Prepayments 1,398,350,153.72 1,127,734,126.28
Premiums receivable
Amounts receivable under
reinsurance contracts
Reinsurer’s share of insurance
contract reserves
Other receivables 51,168,090.47 35,946,262.96
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 1,660,324,608.09 1,916,375,338.89
Contract assets 817,451,396.56
Held-for-sale assets
Non-current assets due within one
year
Other current assets 520,087,664.20 491,278,913.90
Total current assets 12,924,808,372.69 11,728,026,089.81
Non-current Assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 22,882,969.51 210,436,179.18
Other investments in equity
instruments
Other non-current financial assets 6,946,466.60
Investment properties
Fixed assets 186,924,296.25 180,606,150.34
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets 5,894,454,399.68 4,851,078,019.24
Development expenditure 157,264,231.85 38,338,883.84
Goodwill
Long-term prepaid expenses 77,342,051.99 61,646,861.37
Deferred income tax assets
Other non-current Assets 2,023,481.01 1,127,499.30
Total non-current assets 6,340,891,430.29 5,350,180,059.87
Total assets 19,265,699,802.98 17,078,206,149.68
Current liabilities:
Short-term borrowings 39,789,110.68 349,816,947.83
Loans from the central bank
Taking from banks and other
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 712,292,035.75 325,880,463.11
Accounts payable 5,217,087,330.62 5,048,443,928.94
Receipts in advance 1,192,477,979.60
Contract liabilities 1,330,475,023.10
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 856,712,827.84 589,359,251.74
Taxes payable 131,527,885.95 137,563,508.65
Other payables 160,651,194.91 202,952,467.24
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Including: Interest payable
Dividends payable
Fees and commissions payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due within
10,400,000.00
one years
Other current liabilities 138,698,825.59 78,695,861.52
Total current liabilities 8,587,234,234.44 7,935,590,408.63
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions 8,305,486.15 14,232,872.30
Deferred income 48,938,835.69 308,425,484.68
Deferred income tax liabilities
Other non-current liabilities
Total Non-current Liabilities 57,244,321.84 322,658,356.98
Total liabilities 8,644,478,556.28 8,258,248,765.61
Owner’s equity:
Share capital 1,780,377,511.00 1,780,377,511.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 4,838,937,706.35 4,838,937,706.35
Less: Treasury shares
Other comprehensive income -2,759.37
Special reserve
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Surplus reserve 87,139,560.14 84,782,321.71
General risk reserve
Undistributed profit 3,881,526,167.30 2,079,761,680.01
Total owners’ equity attributable to
10,587,978,185.42 8,783,859,219.07
equity holders of the parent company
Minority interests 33,243,061.28 36,098,165.00
Total owners’ equity 10,621,221,246.70 8,819,957,384.07
Total liabilities and owners’ Equity 19,265,699,802.98 17,078,206,149.68
Legal representative: ZHANG Huali Chief financial officer: LIANG Deping Head of accounting department: TAO Jinyu
2. Balance sheet of the Company
In: RMB
Item December 31, 2020 December 31, 2019
Current Assets:
Cash and bank balances 405,729,095.82 359,847,797.79
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivable financing
Prepayments 270,000.00 88,060.80
Other receivables 260,068,347.20 260,036,746.64
Including: Interest receivable
Dividends receivable
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within one
year
Other current assets 3,194,254.68 2,275,609.21
Total current assets 669,261,697.70 622,248,214.44
Non-current Assets:
Debt investments
Other debt investments
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Long-term receivables
Long-term equity investments 7,780,583,738.35 7,970,398,191.17
Other investments in equity
instruments
Other non-current financial assets
Investment properties
Fixed assets 1,305,884.91 343,638.91
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets 803,907.00 776,485.36
Development expenditure
Goodwill
Long-term prepaid expenses 5,579,058.77 6,052,764.08
Deferred income tax assets
Other non-current Assets
Total non-current assets 7,788,272,589.03 7,977,571,079.52
Total assets 8,457,534,286.73 8,599,819,293.96
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable
Accounts payable
Receipts in advance
Contract liabilities
Employee benefits payable 31,708,478.30 19,164,650.75
Taxes payable 545,679.40 316,522.46
Other payables 7,672,949.27 8,093,306.17
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within
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2020 Annual Report of Mango Excellent Media Co., Ltd.
one years
Other current liabilities
Total current liabilities 39,927,106.97 27,574,479.38
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 172,268.06
Deferred income tax liabilities
Other non-current liabilities
Total Non-current Liabilities 172,268.06
Total liabilities 39,927,106.97 27,746,747.44
Owner’s equity:
Share capital 1,780,377,511.00 1,780,377,511.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 6,179,334,010.36 6,179,334,010.36
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 87,139,560.14 84,782,321.71
Undistributed profit 370,756,098.26 527,578,703.45
Total owners’ equity 8,417,607,179.76 8,572,072,546.52
Total liabilities and owners’ Equity 8,457,534,286.73 8,599,819,293.96
3. Consolidated income statement
In: RMB
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Item 2020 2019
I. Total operating income 14,005,534,955.36 12,500,664,232.05
Including: Operating income 14,005,534,955.36 12,500,664,232.05
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 12,143,647,482.17 11,334,717,041.48
Including: Operating costs 9,230,288,644.44 8,284,740,949.42
Interest expenses
Fee and commission
expenses
Surrenders
Claims and policyholder
benefits (net of mounts recoverable from
reinsurers)
Charges in insurance
contract reserves (net of reinsurers’ share)
Insurance policyholder
dividends
Expenses for reinsurance
accepted
Taxes and levies 21,977,750.48 96,430,731.56
Selling expenses 2,164,415,269.87 2,140,684,155.45
General and administrative
629,200,722.73 610,138,439.92
expenses
Research and development
184,384,948.72 239,299,331.86
expenses
Financial expenses -86,619,854.07 -36,576,566.73
Including: Interest
13,532,130.10 15,981,713.90
expenses
Interest income 116,608,027.78 65,976,045.63
Add: Other income 152,751,572.29 58,722,830.21
Investment income (Loss is
80,792,516.40 6,466,901.43
indicated by “-”)
Including: Income from
investments in associates and joint 72,125,990.33 -5,105,446.79
ventures
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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 “-”)
Income from changes in fair
-1,370,986.18
value (Loss is indicated by “-”)
Impairment losses of credit
-52,586,997.38 -51,242,827.14
(Loss is indicated by “-”)
Impairment losses of assets
-36,801,884.43 -624,124.49
(Loss is indicated by “-”)
Income from disposal of assets
354,684.48 -168,797.67
(Loss is indicated by “-”)
III. Operating profit (Loss is indicated by
2,006,397,364.55 1,177,730,186.73
“-”)
Add: Non-operating income 26,886,284.35 25,843,091.28
Less: Non-operating expenses 46,535,880.99 26,039,218.71
IV. Total profit (Total losses are indicated
1,986,747,767.91 1,177,534,059.30
by “-”)
Less: Income tax expenses 7,411,218.58 20,031,543.84
V. Net profit (Net loss is indicated by “-”) 1,979,336,549.33 1,157,502,515.46
(I) Categorized by the nature of
continuing operation
1. Net profit from continuing
1,979,336,549.33 1,157,502,515.46
operations (Net loss is indicated by “-”)
2. Net profit from discontinued
operations (Net loss is indicated by “-”)
(II) Categorized by ownership
Net profit attributable to
1,982,159,476.82 1,156,285,253.73
shareholders of the parent company
2. Profit or loss attributable to
-2,822,927.49 1,217,261.73
minority interests
VI. Other comprehensive income, net of
-2,759.37
tax
Other comprehensive income
-2,759.37
attributable to owners of the parent
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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
-2,759.37
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 -2,759.37
foreign currencies
7. Others
Other comprehensive income
attributable to minority interests, net of
tax
VII. Total comprehensive income 1,979,333,789.96 1,157,502,515.46
Total comprehensive income
attributable to owners of the parent 1,982,156,717.45 1,156,285,253.73
company
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Total comprehensive income
-2,822,927.49 1,217,261.73
attributable to minority interests
VIII. Earnings per share
(I) Basic earnings per share 1.11 0.66
(II) Diluted earnings per share 1.11 0.66
For any business combination involving enterprises under common control for the current period, the net profits of the absorbed party
prior to the combination are RMB in the current period, and were RMB in prior period.
Legal representative: ZHANG Huali Chief financial officer: LIANG Deping Head of accounting department: TAO Jinyu
4. Income statement of the Company
In: RMB
Item 2020 2019
I. Total operating income 0.00 0.00
Less: Operating costs 0.00 0.00
Taxes and levies 6,923.08 1,211.60
Selling expenses
General and administrative
72,126,384.06 45,738,735.45
expenses
Research and development
expenses
Financial expenses -26,287,586.49 -23,110,120.24
Including: Interest
expenses
Interest income 26,296,386.01 23,126,974.14
Add: Other income 227,348.06 3,127,731.94
Investment income (Loss is
69,864,747.18 -4,561,270.99
indicated by “-”)
Including: Income from
investments in associates and joint 69,864,747.18 -7,121,117.50
ventures
Income from
derecognition of financial assets
measured at amortized cost (Loss is
indicated by “-”)
Net exposure hedging income
(Loss is indicated by “-”)
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Income from changes in fair
value (Loss is indicated by “-”)
Impairment losses of credit
-1,040.99 -101.18
(Loss is indicated by “-”)
Impairment losses of assets
(Loss is indicated by “-”)
Income from disposal of
assets (Loss is indicated by “-”)
II. Operating profit (Loss is indicated
24,245,333.60 -24,063,467.04
by “-”)
Add: Non-operating income 20,000.74 0.43
Less: Non-operating expenses 692,950.00
III. Total profit (Total losses are
23,572,384.34 -24,063,466.61
indicated by “-”)
Less: Income tax expenses
Ⅳ. Net profit（(Net loss is indicated by
23,572,384.34 -24,063,466.61
“-”)
(I) Net profit from continuing
23,572,384.34 -24,063,466.61
operation (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
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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 23,572,384.34 -24,063,466.61
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated statements of cash flows
In: RMB
Item 2020 2019
I. Cash Flows from Operating
Activities:
Cash receipts from the sale of
13,100,389,646.19 10,639,452,867.62
goods 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 other
financial institutions
Cash payments for claims and
policyholders' benefits under direct
insurance contracts
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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 2,974,027.99 6,431,647.66
Other cash receipts relating to
253,669,222.21 371,453,333.58
operating activities
Sub-total of cash inflows from
13,357,032,896.39 11,017,337,848.86
operating activities
Cash payments for goods
9,520,378,278.33 7,014,189,213.84
purchased and services received
Net increase in loans and advances
11,344,610.37 311,444,470.47
to customers
Net increase in balance with the
central bank and due from banks and
other financial institution
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
1,280,202,698.37 1,257,941,352.73
employees
Payments of various types of taxes 176,899,520.26 198,848,248.38
Other cash payments relating to
1,787,237,435.98 1,942,047,852.26
operating activities
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Sub-total of cash outflows from
12,776,062,543.31 10,724,471,137.68
operating activities
Net cash flow from operating activities 580,970,353.08 292,866,711.18
II. Cash Flows from Investing
Activities:
Cash receipts from disposals and
259,679,200.00 63,804,483.36
recovery of investments
Cash receipts from investment
income
Net cash receipts from disposals of
fixed assets, intangible assets and other 403,685.56 323,367.83
long-term assets
Net cash receipts from disposals of
subsidiaries and other business entities
Other cash receipts relating to
626,406,349.28 858,780,471.64
investing activities
Sub-total of cash inflows from investing
886,489,234.84 922,908,322.83
activities
Cash payments to acquire or
construct fixed assets, intangible assets 69,959,021.89 155,967,045.02
and other long-term assets
Cash payments to acquire
investments
Net increase in pledged loans
receivables
Net cash payments for acquisitions
of subsidiaries and other business units;
Other cash payments relating to
622,500,000.00 657,600,000.00
investing activities.
Sub-total of cash outflows from
692,459,021.89 813,567,045.02
investing activities
Net cash flow from investing activities 194,030,212.95 109,341,277.81
III. Cash Flows from Financing
Activities:
Cash receipts from capital
1,987,819,969.03
contributions
Including: cash receipts from
capital contributions from minority
owners of subsidiaries
135
2020 Annual Report of Mango Excellent Media Co., Ltd.
Cash receipts from borrowings 160,436,700.00 392,599,400.00
Other cash receipts relating to
financing activities
Sub-total of cash inflows from
160,436,700.00 2,380,419,369.03
financing activities
Cash repayments of borrowings 470,057,800.00 239,344,400.00
Cash payments for distribution of
dividends or profits or settlement of 192,215,024.91 15,741,592.38
interest expenses
Including: payments for
distribution of dividends or profits to
minority owners of subsidiaries
Other cash payments relating to
657,257.37
financing activities
Sub-total of cash outflows from
662,272,824.91 255,743,249.75
financing activities
Net cash flow from financing activities -501,836,124.91 2,124,676,119.28
IV. Effect of Foreign Exchange Rate
223,543.73 -395,763.36
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
273,387,984.85 2,526,488,344.91
Equivalents
Add: Opening balance of cash and
5,041,075,499.16 2,514,587,154.25
cash equivalents
VI. Closing Balance of Cash and Cash
5,314,463,484.01 5,041,075,499.16
Equivalents
6. Statement of cash flows of the Company
In: RMB
Item 2020 2019
I. Cash Flows from Operating
Activities:
Cash receipts from the sale of
27,000.00
goods and the rendering of services;
Receipts of tax refunds
Other cash receipts relating to
41,857,033.57 117,743,252.37
operating activities
Sub-total of cash inflows from
41,857,033.57 117,770,252.37
operating activities
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Cash payments for goods
purchased and services received
Cash payments to and on behalf of
33,162,880.94 16,608,439.68
employees
Payments of various types of taxes 1,211.60
Other cash payments relating to
42,247,660.59 290,480,238.38
operating activities
Sub-total of cash outflows from
75,410,541.53 307,089,889.66
operating activities
Net cash flow from operating activities -33,553,507.96 -189,319,637.29
II. Cash Flows from Investing
Activities:
Cash receipts from disposals and
259,679,200.00 60,000,000.00
recovery of investments
Cash receipts from investment
income
Net cash receipts from disposals of
fixed assets, intangible assets and other
long-term assets
Net cash receipts from disposals of
subsidiaries and other business entities
Other cash receipts relating to
74,243,568.71
investing activities
Sub-total of cash inflows from investing
259,679,200.00 134,243,568.71
activities
Cash payments to acquire or
construct fixed assets, intangible assets 2,206,642.91 7,515,394.30
and other long-term assets
Cash payments to acquire
1,989,411,813.91
investments
Net cash payments for acquisitions
of subsidiaries and other business units;
Other cash payments relating to
investing activities.
Sub-total of cash outflows from
2,206,642.91 1,996,927,208.21
investing activities
Net cash flow from investing activities 257,472,557.09 -1,862,683,639.50
III. Cash Flows from Financing
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Activities:
Cash receipts from capital
1,987,819,969.03
contributions
Cash receipts from borrowings
Other cash receipts relating to
financing activities
Sub-total of cash inflows from
1,987,819,969.03
financing activities
Cash repayments of borrowings
Cash payments for distribution of
dividends or profits or settlement of 178,037,751.10
interest expenses
Other cash payments relating to
657,257.37
financing activities
Sub-total of cash outflows from
178,037,751.10 657,257.37
financing activities
Net cash flow from financing activities -178,037,751.10 1,987,162,711.66
IV. Effect of Foreign Exchange Rate
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
45,881,298.03 -64,840,565.13
Equivalents
Add: Opening balance of cash and
359,847,797.79 424,688,362.92
cash equivalents
VI. Closing Balance of Cash and Cash
405,729,095.82 359,847,797.79
Equivalents
7. Consolidated statement of changes in owners’ equity
Amount in the current period
In: RMB
2020
Equity attributable to owners of the parent company
Other equity
instruments Other Total
Item Less: General Undistri Minority
Share Capital compreh Special Surplus owners’
Treasury risk buted Others Sub-total interests
Perpet equity
capital Prefer reserve ensive reserve reserve
ual Others shares reserve profit
red income
bonds
shares
I. Closing 1,780 4,838, 84,782 2,079, 8,783,85 36,098,1 8,819,
138
2020 Annual Report of Mango Excellent Media Co., Ltd.
balance of the ,377, 937,70 ,321.7 761,68 9,219.07 65.00 957,38
preceding year 511.0 6.35 1 0.01 4.07
0
Add:
Changes in
accounting
policies
Corrections of
prior period
errors
Business
combination
involving
enterprises
under common
control
Others
1,780
II. Opening 4,838, 84,782 2,079, 8,819,
,377, 8,783,85 36,098,1
balance of the 937,70 ,321.7 761,68 957,38
511.0 9,219.07 65.00
current year 6.35 1 0.01 4.07
0
III. Changes for
the year 1,801, 1,801,
-2,759. 2,357, 1,804,11 -2,855,1
(decrease is 764,48 263,86
37 238.43 8,966.35 03.72
indicated by 7.29 2.63
“-”)
(I) Total 1,982, 1,979,
-2,759. 1,982,15 -2,822,9
comprehensive 159,47 333,78
37 6,717.45 27.49
income 6.82 9.96
(II) Owners’
contributions -32,176. -32,17
and reduction in 23 6.23
capital
1. Ordinary
shares
contributed by
owners
2. Capital
139
2020 Annual Report of Mango Excellent Media Co., Ltd.
contribution
from holders of
other equity
instruments
3. Share-based
payment
recognized in
owners’ equity
-32,176. -32,17
4. Others
23 6.23
-180,3 -178,0
(III) Profit 2,357, -178,03
94,989 37,751
distribution 238.43 7,751.10
.53 .10
1. Transfer to 2,357, -2,357,
surplus reserve 238.43 238.43
2. Transfer to
general risk
reserve
3. Distributions -178,0 -178,0
-178,03
to owners (or 37,751 37,751
7,751.10
shareholders) .10 .10
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
140
2020 Annual Report of Mango Excellent Media Co., Ltd.
earnings carried
forward from
other
comprehensive
income
6. Others
(V) Special
reserve
1. Transfer to
special reserve
in the current
period
2. Amount
utilized in the
current period
(VI) Others
1,780
VI. Closing 4,838, 87,139 3,881, 10,587,9 10,621
,377, -2,759. 33,243,0
balance of the 937,70 ,560.1 526,16 78,185.4 ,221,2
511.0 37 61.28
current period 6.35 4 7.30 2 46.70
0
Amount in prior period
In: RMB
2019
Equity attributable to owners of the parent company
Other equity
instruments Other Total
Item Minority
Less: General Undistri
Share Capital compre Special Surplus owners’
Perpet Treasur risk buted Others Sub-total interests
capital Prefer reserve hensive reserve reserve equity
ual Others y shares reserve profit
red income
bonds
shares
I. Closing 990,0 3,641, 84,782 923,47 5,639,3 5,674,2
34,880,
balance of the 23,51 091,02 ,321.7 6,426. 73,295. 54,198.
903.27
preceding year 8.00 9.73 1 28 72 99
Add:
Changes in
accounting
policies
Corrections of
prior period
141
2020 Annual Report of Mango Excellent Media Co., Ltd.
errors
Business
combination
involving
enterprises
under common
control
Others
II. Opening 990,0 3,641, 84,782 923,47 5,639,3 5,674,2
34,880,
balance of the 23,51 091,02 ,321.7 6,426. 73,295. 54,198.
903.27
current year 8.00 9.73 1 28 72 99
III. Changes for
the year 790,3 1,197, 1,156, 3,144,4 3,145,7
1,217,2
(Decrease is 53,99 846,67 285,25 85,923. 03,185.
61.73
indicated by 3.00 6.62 3.73 35 08
“-”)
(I) Total 1,156, 1,156,2 1,157,5
1,217,2
comprehensive 285,25 85,253. 02,515.
61.73
income 3.73 73 46
(II) Owners’
57,25 1,930, 1,988,2 1,988,2
contributions
7,371 943,29 00,669. 00,669.
and reduction
.00 8.62 62 62
in capital
1. Ordinary
57,25 1,925, 1,982,7 1,982,7
shares
7,371 443,29 00,669. 00,669.
contributed by
.00 8.62 62 62
owners
2. Capital
contribution
from holders of
other equity
instruments
3. Share-based
payment
recognized in
owners’ equity
5,500, 5,500,0 5,500,0
4. Others
000.00 00.00 00.00
(III) Profit
142
2020 Annual Report of Mango Excellent Media Co., Ltd.
distribution
1. Transfer to
surplus reserve
2. Transfer to
general risk
reserve
3. Distributions
to owners (or
shareholders)
4. Others
(IV) Transfers 733,0 -733,0
within owners’ 96,62 96,622
equity 2.00 .00
1.
733,0 -733,0
Capitalization
96,62 96,622
of capital
2.00 .00
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
143
2020 Annual Report of Mango Excellent Media Co., Ltd.
special reserve
in the current
period
2. Amount
utilized in the
current period
(VI) Others
1,780
VI. Closing 4,838, 84,782 2,079, 8,783,8 8,819,9
,377, 36,098,
balance of the 937,70 ,321.7 761,68 59,219. 57,384.
511.0 165.00
current period 6.35 1 0.01 07 07
0
8. Statement of changes in owners’ equity of the Company
Amount in the current period
In: RMB
2020
Other equity
instruments Other
Less: Undistr Total
Item Share Capital compreh Special Surplus
Perpet Treasury ibuted Others owners’
capital Preferr reserve ensive reserve reserve
ual Others shares profit equity
ed income
bonds
shares
I. Closing 1,780,3 527,57
6,179,33 84,782,3 8,572,072,
balance of the 77,511. 8,703.4
4,010.36 21.71 546.52
preceding year 00 5
Add:
Changes in
accounting
policies
Corrections of
prior period
errors
Others
II. Opening 1,780,3 527,57
6,179,33 84,782,3 8,572,072,
balance of the 77,511. 8,703.4
4,010.36 21.71 546.52
current year 00 5
III. Changes for 2,357,23 -156,82 -154,465,3
the year 8.43 2,605.1 66.76
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2020 Annual Report of Mango Excellent Media Co., Ltd.
(Decrease is 9
indicated by “-”)
(I) Total
23,572, 23,572,38
comprehensive
384.34 4.34
income
(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
-180,39
(III) Profit 2,357,23 -178,037,7
4,989.5
distribution 8.43 51.10
3
1. Transfer to 2,357,23 -2,357, 2,357,238.
surplus reserve 8.43 238.43 43
2. Distributions -178,03
-178,037,7
to owners (or 7,751.1
51.10
shareholders) 0
3. Others
(IV) Transfers
within owners’
equity
1. Capitalization
of capital reserve
2. Capitalization
of surplus
reserve
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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 current
period
2. Amount
utilized in the
current period
(VI) Others
VI. Closing 1,780,3 370,75
6,179,33 87,139,5 8,417,607,
balance of the 77,511. 6,098.2
4,010.36 60.14 179.76
current period 00 6
Amount in prior period
In: RMB
2019
Other equity
instruments Other
Less: Undistrib Total
Item Share Capital compre Special Surplus
Perpet Treasur uted Others owners’
capital Preferr reserve hensive reserve reserve
ual Others y shares profit equity
ed income
bonds
shares
I. Closing 990,02 4,981,4
84,782, 551,642,1 6,607,935,3
balance of the 3,518. 87,333.
321.71 70.06 43.51
preceding year 00 74
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Add:
Changes in
accounting
policies
Corrections of
prior period
errors
Others
II. Opening 990,02 4,981,4
84,782, 551,642,1 6,607,935,3
balance of the 3,518. 87,333.
321.71 70.06 43.51
current year 00 74
III. Changes for
the year 790,35 1,197,8
-24,063,4 1,964,137,2
(Decrease is 3,993. 46,676.
66.61 03.01
indicated by 00 62
“-”)
(I) Total
-24,063,4 -24,063,466
comprehensive
66.61 .61
income
(II) Owners’
57,257 1,930,9
contributions 1,988,200,6
,371.0 43,298.
and reduction in 69.62
0 62
capital
1. Ordinary
57,257 1,925,4
shares 1,982,700,6
,371.0 43,298.
contributed by 69.62
0 62
owners
2. Capital
contribution
from holders of
other equity
instruments
3. Share-based
payment
recognized in
owners’ equity
5,500,0 5,500,000.0
4. Others
00.00 0
(III) Profit
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2020 Annual Report of Mango Excellent Media Co., Ltd.
distribution
1. Transfer to
surplus reserve
2. Distributions
to owners (or
shareholders)
3. Others
(IV) Transfers 733,09 -733,09
within owners’ 6,622. 6,622.0
equity 00 0
1.
733,09 -733,09
Capitalization
6,622. 6,622.0
of capital
00 0
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 current
period
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2020 Annual Report of Mango Excellent Media Co., Ltd.
2. Amount
utilized in the
current period
(VI) Others
VI. Closing 1,780, 6,179,3
84,782, 527,578,7 8,572,072,5
balance of the 377,51 34,010.
321.71 03.45 46.52
current period 1.00 36
III. BASIC INFORMATION
Mango Excellent Media Co., Ltd. (hereinafter referred to as 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
RMB1,780,377,511.00 and a total of 1,780,377,511 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 931,356,700 shares as of
December 31, 2020. The Company’s shares were listed for trading on the Shenzhen Stock Exchange on January
21, 2015.
The Company is an entity 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 36th meeting of the third board of directors of the Company
on April 22, 2021 for issuance.
27 companies including Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd. (hereinafter
referred to as “Happy Sunshine Company”), Shanghai Mangofun Technology Co., Ltd. (hereinafter referred to as
“Mangofun”), Shanghai EE-Media Co., Ltd. (hereinafter referred to as “EE-Media”), Mango Studios Co., Ltd.,
(hereinafter referred to as “Mango Studios”), Hunan Mango Entertainment Co., Ltd. ( hereinafter referred to as
“Mango Entertainment”), Happigo Co., Ltd. and Hunan Happy Money Microfinance Co., Ltd. were included in
the scope of the consolidated financial statements for the current period. For details, please see Note VIII Changes
in Scope of Consolidation and Note IX Interests in Other Entities.
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.
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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, amortization of intangible
assets, recognition of revenues and other transactions and events according to the actual production and operation
characteristics of the Company.
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. Accounting treatment of business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
1. Accounting treatment of business combinations involving entities under common control
Assets and liabilities that are obtained by the Company in a business combination shall be measured at their
carrying amounts in the consolidated financial statements of the ultimate controller at the combination date as
recorded by the acquiree. The difference between the carrying amount of the owners’ equity of the acquiree as
stated in the consolidated financial statements of the ultimate controller and the carrying amount of the total
consideration paid or total par value of the shares issued in connection with the combination 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.
2. Accounting treatment of business combinations not involving entities under common control
Where the cost of the combination 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
combination is lower than the Company’s share of the fair value of the acquiree’s identifiable net assets, the
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Company reviews the measurement of the fair value of each of the identifiable assets, liabilities and contingent
liabilities acquired from the acquiree and the cost of combination, and if the cost of combination 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.
6. Method of preparation of financial statements
The parent 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.
7. 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.
8. 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.
9. 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
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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 “retained 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.
10. 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) 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 Standard 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 debt 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 debt 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
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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. Upon derecognition, the
aggregate gains or losses previously recognized in other comprehensive income are transferred to 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
Standard 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
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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 amount 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 amount 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 amount 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 combinations, and financial forecasts made using own data.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
The Company determines the impairment and assesses provision for impairment losses of financial assets at
amortized cost, investments in debt instruments at fair value through other comprehensive income, lease
receivable, loan commitments other than financial liabilities designated at fair value through profit or loss, and
financial guarantee contracts other than financial liabilities designated at fair value through profit or loss and
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, 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
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2020 Annual Report of Mango Excellent Media Co., Ltd.
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 amount 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 amount.
(2) Financial instruments for which expected credit risk is assessed and expected credit losses are measured
collectively
Description Basis for grouping Method for measuring expected credit losses
Other receivables - group of receivables Nature of Calculate the expected credit losses according to the
from affiliates controlled by the same receivables default risk exposure and rate of expected credit
actual controller loss within the next 12 months or over the life by
Other receivables - group of deposit and reference to historic credit loss experience, and
security receivable taking into account the current situations and
Other receivables - grouping by age Aging prediction of future 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
Description Basis for grouping Method for measuring expected credit
losses
Notes receivable - banker’s acceptance Type of bills Calculate the expected credit losses
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2020 Annual Report of Mango Excellent Media Co., Ltd.
bills according to the default risk exposure and
Notes receivable - commercial rate of lifetime expected credit loss by
acceptance bills receivable reference to historic credit loss experience,
Accounts receivables - group of Group of receivables from and taking into account the current
receivables from affiliates controlled by affiliates controlled by the situations and prediction of future
the same actual controller same actual controller economic conditions.
Accounts receivable - grouping by age Aging 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
historic credit loss experience, and taking
into account the current situations and
prediction of future economic conditions.
Other current assets - loans and advances Loans and advances Calculate the expected credit losses
according to the default risk exposure and
rate of lifetime expected credit loss by
reference to historic credit loss experience,
and taking into account the current
situations and prediction of future
economic conditions.
Contract assets - Group of operator Operator business Calculate the expected losses according to
business the default risk exposure and rate of
lifetime expected loss by reference to
historic loss experience, and taking into
account the 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: New media platform operation (Happy Sunshine)
Within 1 year (inclusive, same below) 5.00
More than 1 year but not exceeding 2 years 10.00
More than 2 years but not exceeding 3 years 30.00
More than 3 years but not exceeding 4 years 50.00
More than 4 years but not exceeding 5 years 100.00
More than 5 years 100.00
Group II: New media interactive entertainment production and
operation, medial retails and others (companies other than Happy
Sunshine)
Within 1 year (inclusive, same below) 1.00
More than 1 year but not exceeding 2 years 5.00
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2020 Annual Report of Mango Excellent Media Co., Ltd.
More than 2 years but not exceeding 3 years 10.00
More than 3 years but not exceeding 4 years 30.00
More than 4 years but not exceeding 5 years 50.00
More than 5 years 100.00
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 do not
offset the transferred financial asset and the associated liability.
11. Inventories
The Company shall comply with the disclosure requirements set forth in ChiNext Guide on Industrial Information Disclosure No. 6 --
Internet Video Business Conducted by Listed Companies.
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 television
drama and consignment goods using the specific-identification method and of the remaining goods using the
weighted average method.
3. Determination basis of net realizable value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value, and the
provision for decline in value of inventories is determined on an item-by-item basis. For inventories available for
sales, in the ordinary production and operation process, their realizable net value is determined at the estimated
selling price of these inventories less the estimated costs necessary to make the sale and relevant taxes; for the
inventories that need to be processed, in the ordinary production and operation process, their realizable net value
is determined at the estimated selling price of finished products less the estimated costs of completion and the
estimated costs necessary to make the sale and relevant taxes. At the balance sheet date, where a part of an
inventory is subject to the contract price agreement and other parts of the same inventory has no such agreement,
their realizable net value is determined separately, and by comparing them with their corresponding cost, the
amount made for or reversal of the provision for decline in value of inventories is determined separately.
4. 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 file and television dramas.
5. Amortization of low-value consumables and packing materials
(1) Low-value consumables
The low-value consumables are amortized using immediate write-off method.
(2) Packing materials
The packing materials are amortized using immediate write-off method.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
12. Contract assets
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 contract assets and liabilities under the same contract as net amount after
offset.
The Company presents its owned right to unconditionally (that is, only depending on the passage of time) receive consideration
from customers as the accounts receivable, and the right to receive the consideration for which the goods that have been transferred
to customers (that is, depending on factors other than the passage of time) as the contract assets.
13. 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 a provisions for impairment originally made and
include it in the profit or loss for the current period, provided that the carrying amount after reverse shall not
exceed the carrying amount the asset would have reached on the date of reversal had the provision for impairment
been not made.
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 relevant activities of such
arrangement must be decided 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 combination involving entities under
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common control, if the acquirer pays consideration for the business combination by cash, transfer of
non-monetary 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 amount of the owners’ equity of the acquiree
in the consolidated financial statements of the ultimate controller at the date of combination. The difference
between the initial investment cost of the long-term equity investment and the carrying amount of the
consideration paid for the combination 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 combination 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-combination share of the carrying amount of the owners’ equity of the acquiree in the
consolidated financial statements of the ultimate controller at the date of combination; The difference between the
initial investment cost of the long-term equity investment at the date of combination and the sum of the carrying
amount of long-term equity investment before the combination and the carrying amount of the consideration paid
for acquisition of the additional shares at the date of combination 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 combination not involving enterprises under
common control, the initial investment cost is the fair value of the carrying amount of the consideration paid for
the combination at the date of acquisition.
With respect to a long-term equity investment acquired through a business combination not involving
enterprises 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 amount 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 amount 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 combination, 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.
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3. Subsequent measurement and recognition of profit of 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) Separate financial statements
The difference between the carrying amount 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
1) Disposal of investment in a subsidiary through multiple transactions by steps until loss of control over the
subsidiary which do not constitute a “package deal”
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 combination 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 in relation to the
long-term equity investment disposed of as calculated continuously from the date of acquisition or combination
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.
2) Disposal of investment in a subsidiary through multiple transactions by steps until loss of control over the
subsidiary which constitute a “package deal”
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. Fixed assets
(1) Criteria for recognition
Fixed assets are tangible assets held for production of goods, rendering of service, 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.
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(2) Depreciation
Estimated useful life
Category Method of depreciation Residual value rate Annual depreciation rate
(years)
Buildings Straight line method 30 4 3.2
Mechanical 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.
16. Construction in progress
1. A construction in progress is recognized if the economic benefits relating to it are very likely to flow to the
Company and its cost can be reliably measured. A construction in progress is measured at the actual cost incurred
for bringing the asset to working condition for its intended use.
2. The construction in progress shall be transferred to fixed assets at its actual construction cost when
meeting working conditions for its intended use. If a project under construction have not undergone final accounts
for completion when the project meets the working condition for its intended use, the project is transferred to
fixed assets at the estimated value, and after final accounts for completion are handled, the original value
provisionally estimated is adjusted at the actual cost, but no adjustment is made to originally provided
depreciation.
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 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
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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) Pricing methods, useful lives and impairment tests
The Company shall comply with the disclosure requirements set forth in ChiNext Guide on Industrial Information Disclosure No. 6 --
Internet Video Business Conducted by Listed Companies.
1. Intangible assets include file and television copyrights, land use rights, software, trademark rights and
copyrights, which are initially measured at cost.
2. Service life and amortization method
(1) Amortization and carryforwards of file and television copyrights
When a film and television 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 film and television drama 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 in a straight line 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 not more than 2 years, they are amortized
on a monthly basis during the benefit period.
When the file and television 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 book amortized value of intangible
assets from the date on which they satisfied 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 during the
amortization period.
(2) Amortization of other intangible assets other than film and television 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:
Item Amortization period (years)
Land use rights 49
Software 3-10
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Trademarks and domain names Authorized use period
Patent license fee 10
Program adaptation license 3
Game copyright Period granted by the contract
(2) Accounting policy on internal research and development expenditures
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 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 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 in a business combination 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 amount, 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 deferred expenses are expensed that have already been incurred but should be amortized over a
period of more than one year (excluding one year). Long-term deferred expenses are stated as the amount actually
incurred and are amortized evenly by stages within the benefit period or specified period. If an item of long-term
deferred 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 contract assets and liabilities under the same contract as net amount after
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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 same as part of the cost of related assets or
in profit or loss for the current period.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
The Company recognizes the amount contributable calculated based on the defined contribution plan during
the accounting period when the employees provide services for the Company as liabilities, and include 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 defined benefit plan 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-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 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.
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(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, litigations, 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 amount of provisions is reviewed at the balance sheet date.
24. Revenue
The accounting policies adopted for the recognition and measurement of revenue
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 and 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
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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 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. Recognition of revenue
(1) Revenue recognized at a point in time
The Company’s sales of TV shopping products, film and television 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 has 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 has been transferred.
(2) Revenue recognized according to the progress of contract performance
The Company provides membership, artist, operator and financial services, etc. The customer obtains and
consumes the economic benefits generated by the Company’s performance when the Company performs the
contract, so 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/input
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
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progress can be reasonably determined.
The Company’s specific principles for the recognition and measurement of revenues earned in the following
sectors and lines of business are as follows:
(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 other current liabilities.
When the credits are exchanged by the customers, the portion of other current 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) Revenue from advertising service
Revenue from advertising service 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) Revenue from member service
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 counterparty 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
① Investment in films, TV plays and programs in which the Company does not hold copyright
Applicable business: The Company participates in the production of a film or TV play 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 businesses is recognized as investment income.
② Investment in films, TV plays and programs in which the Company holds joint copyright
Applicable business: The Company participates in the production of a film or TV play 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 distribution of a TV play is recognized
when the production of the TV play has been completed, the film and TV authority has examined the TV play and
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issued a TV Play Release Permit, the copies, tapes and other media of the TV play have been delivered to the
buyers and it is probable that the economic benefits associated therewith will flow to the Company. Revenue from
distribution of a film is recognized when the production of the film has been completed, the film and TV authority
has examined the film play and issued a Film Play Release Permit, the film has been screened in theaters and the
settlement statement has been received from the relevant theater chains. Revenue from distribution of a program is
recognized when the production of the program 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 distribution, 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 distribution,
when the Company receives the income settlement statement as agreed, the Company recognizes the income
receivable as “operating revenue”.
3) Recognition of cost
If the Company is responsible for the production of and accounting for a film or TV play, 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 TV play is ready for release, such amount is offset against the inventory cost of
film and TV plays. If another party is responsible for the production of and accounting for the film or TV play,
the production fee paid by the Company to the production partner under the contract is initially recorded as
“advances to suppliers”, 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 TV play
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 TV play investment project from “advances from clients” to “inventories - production cost”. After
obtaining copyright in the film or TV play under the contract, the actual cost of the film or TV play 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
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terminal products actually sold in the given month and their selling prices.
(7) Recognition of revenue from artist agent service
1) Artist performance service
The service period is relatively short. In this service, the Company mainly helps the artists give commercial
performance or concerts, and recognizes the revenue after a contracted artist has fulfilled his or her contractual
obligations.
2) Artist shooting service
Shooting service includes participation by the artists in the shooting of films and TV plays and recording of
programs. The service period is about three months generally. The Company recognizes the revenue after a
contracted artist has fulfilled his or her contractual obligations.
3) Artist endorsement service
The term of an artist’s endorsement is about 1-2 years generally. During the term of endorsement, the artist
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 artist, the service fee already received by the Company will not be refunded
except for force majeure, and the service fee may be wholly recognized as revenue. If the contract provides that,
in addition to indicating the force majeure, the artist 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 plays and program
Derivative revenue from films, TV plays and program 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 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
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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 Satellite TV, and is recognized after the showing of the relevant programs on 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. Government grants
1. Government grants are recognized if (1) the Company meets the conditions attaching to the government
grants; and (ii) 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 amount 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 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
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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 finance department allocates the interest discount funds 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 finance department directly allocates the interest discount funds to the Company, the Company
offsets the corresponding interest subsidy against the related borrowing costs.
26. Deferred tax assets / deferred tax liabilities
1. The difference between the tax base of an asset or liability and its carrying amount (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 amount 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 amount of a deferred tax asset is reviewed. The Company reduces
the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profits
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 profits 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 combination; or (2) a
transaction or event which is recognized directly in owner’s equity.
27. Lease
(1) Accounting Treatment for operating lease
If the Company is a lessee, the rents paid by the Company are included in the costs of the relevant assets or
in profit or loss for the current period over the whole lease term on a straight line basis. The initial direct cost
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incurred by the Company is directly recognized in profit or loss for the current period. Contingent rents are
charged to profit or loss in the period in which they are actually incurred.
If the Company is a lessor, the rents received by the Company are recognized in profit or loss for the current
period over the whole lease term on a straight line basis. The initial direct cost incurred by the Company is
directly recognized in profit or loss for the current period. However, if such initial direct cost is of a large amount,
the initial direct cost is capitalized and recognized in profit or loss by installments. Contingent rents are charged to
profit or loss in the period in which they are actually incurred.
28. 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 amount of other
current liabilities for the period in which the estimation is changed.
29. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√ Applicable □N/A
Changes in accounting policies and
Approval procedure Remark
associated reasons
Changes in accounting policies caused by Approved by the Company at the 29th
changes in Accounting Standards for conference of the 3rd board of directors New Revenue Standards
Business Enterprises held on April 23, 2020.
1. The Company implements the Accounting Standard for Business Enterprises No. 14—Revenue revised by
the Ministry of Finance (“New Revenue Standard”) from January 1, 2020. In accordance with the relevant
regulations on the transition of old and new standards, the information for the comparable period is not adjusted,
and the cumulative effects arising from the implementation of new standards on the first implementation date is
retrospectively adjusted to the amount of retained earnings and other related items in the financial statements at
the beginning of the reporting period.
The main impacts of the new standards on the Company’s financial statements on January 1, 2020 are
presented as follows:
Item Balance sheet
December 31, 2019 Adjusted effects arising from January 1, 2020
the implementation of New
Revenue Standards
Accounts receivable 2,997,010,508.82 -572,868,754.73 2,424,141,754.09
Contract Assets 572,868,754.73 572,868,754.73
Receipts in advance 1,192,477,979.60 -1,192,477,979.60
Contract liabilities 1,417,590,477.58 1,417,590,477.58
Other current liabilities 78,695,861.52 37,041,392.57 115,737,254.09
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Deferred income 308,425,484.68 -262,153,890.55 46,271,594.13
2. The Company implements the Interpretation No. 13 of the Accounting Standards for Business Enterprises
issued by the Ministry of Finance in 2019 from January 1, 2020, and changes in the accounting policy are
accounted for using prospective application.
(2) Changes in significant accounting estimates
□ Applicable √ N/A
(3) Description of adjustments in opening balances of line items in financial statements of the year due to
first implementation of new financial instrument standards, new income standard and new lease standard
since 2020
Applicable
Did the line items of the opening assets and liabilities require adjustment?
√ Yes □ No
Consolidated balance sheet
In RMB
Item December 31, 2019 January 01, 2020 Adjusted amount
Current Assets:
Cash and bank balances 5,064,224,581.46 5,064,224,581.46
Balances with clearing
agencies
Placements with banks
and other financial
institutions
Held-for-trading
financial assets
Derivative financial
assets
Notes receivable 95,456,357.50 95,456,357.50
Accounts receivable 2,997,010,508.82 2,424,141,754.09 -572,868,754.73
Receivable financing
Prepayments 1,127,734,126.28 1,127,734,126.28
Premiums receivable
Amounts receivable
under reinsurance contracts
Reinsurer’s share of
insurance contract reserves
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Other receivables 35,946,262.96 35,946,262.96
Including: Interest
receivable
Dividends
receivable
Financial assets
purchased under resale
agreements
Inventories 1,916,375,338.89 1,916,375,338.89
Contract assets 572,868,754.73 572,868,754.73
Held-for-sale assets
Non-current assets due
within one year
Other current assets 491,278,913.90 491,278,913.90
Total current assets 11,728,026,089.81 11,728,026,089.81
Non-current Assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity
210,436,179.18 210,436,179.18
investments
Other investments in
equity instruments
Other non-current
6,946,466.60 6,946,466.60
financial assets
Investment properties
Fixed assets 180,606,150.34 180,606,150.34
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets 4,851,078,019.24 4,851,078,019.24
Development
38,338,883.84 38,338,883.84
expenditure
Goodwill
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Long-term prepaid
61,646,861.37 61,646,861.37
expenses
Deferred income tax
assets
Other non-current
1,127,499.30 1,127,499.30
Assets
Total non-current assets 5,350,180,059.87 5,350,180,059.87
Total assets 17,078,206,149.68 17,078,206,149.68
Current liabilities:
Short-term borrowings 349,816,947.83 349,816,947.83
Loans from the central
bank
Taking from banks and
other financial institutions
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable 325,880,463.11 325,880,463.11
Accounts payable 5,048,443,928.94 5,048,443,928.94
Receipts in advance 1,192,477,979.60 -1,192,477,979.60
Contract liabilities 1,417,590,477.58 1,417,590,477.58
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
589,359,251.74 589,359,251.74
payable
Taxes payable 137,563,508.65 137,563,508.65
Other payables 202,952,467.24 202,952,467.24
Including: Interest
payable
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Dividends
payable
Fees and commissions
payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities
10,400,000.00 10,400,000.00
due within one years
Other current liabilities 78,695,861.52 115,737,254.09 37,041,392.57
Total current liabilities 7,935,590,408.63 8,197,744,299.18 262,153,890.55
Non-current liabilities:
Insurance contract
reserves
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions 14,232,872.30 14,232,872.30
Deferred income 308,425,484.68 46,271,594.13 -262,153,890.55
Deferred income tax
liabilities
Other non-current
liabilities
Total Non-current Liabilities 322,658,356.98 60,504,466.43 -262,153,890.55
Total liabilities 8,258,248,765.61 8,258,248,765.61
Owner’s equity:
Share capital 1,780,377,511.00 1,780,377,511.00
Other equity instruments
Including: Preferred
shares
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Perpetual
bonds
Capital reserve 4,838,937,706.35 4,838,937,706.35
Less: Treasury shares
Other comprehensive
income
Special reserve
Surplus reserve 84,782,321.71 84,782,321.71
General risk reserve
Undistributed profit 2,079,761,680.01 2,079,761,680.01
Total owners’ equity
attributable to equity holders 8,783,859,219.07 8,783,859,219.07
of the parent company
Minority interests 36,098,165.00 36,098,165.00
Total owners’ equity 8,819,957,384.07 8,819,957,384.07
Total liabilities and owners’
17,078,206,149.68 17,078,206,149.68
Equity
Descriptions of adjustments
Balance sheet of the Company
In RMB
Item December 31, 2019 January 01, 2020 Adjusted amount
Current Assets:
Cash and bank balances 359,847,797.79 359,847,797.79
Held-for-trading
financial assets
Derivative financial
assets
Notes receivable
Accounts receivable
Receivable financing
Prepayments 88,060.80 88,060.80
Other receivables 260,036,746.64 260,036,746.64
Including: Interest
receivable
Dividends
receivable
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Inventories
Contract assets
Held-for-sale assets
Non-current assets due
within one year
Other current assets 2,275,609.21 2,275,609.21
Total current assets 622,248,214.44 622,248,214.44
Non-current Assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity
7,970,398,191.17 7,970,398,191.17
investments
Other investments in
equity instruments
Other non-current
financial assets
Investment properties
Fixed assets 343,638.91 343,638.91
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets
Intangible assets 776,485.36 776,485.36
Development
expenditure
Goodwill
Long-term prepaid
6,052,764.08 6,052,764.08
expenses
Deferred income tax
assets
Other non-current
Assets
Total non-current assets 7,977,571,079.52 7,977,571,079.52
Total assets 8,599,819,293.96 8,599,819,293.96
Current liabilities:
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Short-term borrowings
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable
Accounts payable
Receipts in advance
Contract liabilities
Employee benefits
19,164,650.75 19,164,650.75
payable
Taxes payable 316,522.46 316,522.46
Other payables 8,093,306.17 8,093,306.17
Including: Interest
payable
Dividends
payable
Held-for-sale liabilities
Non-current liabilities
due within one years
Other current liabilities
Total current liabilities 27,574,479.38 27,574,479.38
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income 172,268.06 172,268.06
Deferred income tax
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liabilities
Other non-current
liabilities
Total Non-current Liabilities 172,268.06 172,268.06
Total liabilities 27,746,747.44 27,746,747.44
Owner’s equity:
Share capital 1,780,377,511.00 1,780,377,511.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserve 6,179,334,010.36 6,179,334,010.36
Less: Treasury shares
Other comprehensive
income
Special reserve
Surplus reserve 84,782,321.71 84,782,321.71
Undistributed profit 527,578,703.45 527,578,703.45
Total owners’ equity 8,572,072,546.52 8,572,072,546.52
Total liabilities and owners’
8,599,819,293.96 8,599,819,293.96
Equity
Descriptions of adjustments
(4) Descriptions of retrospective adjustments in comparative data in prior periods due to the first
implementation of new revenue standards or new lease standard from 2020
□Applicable √N/A
VI. TAXES
1. Major categories of taxes and tax rates
Category of tax 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
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Consumption tax Taxable sales turnover (volume) 5%
City maintenance and construction tax Actually paid turnover tax 7%, 5%
Tax exemption, 8.25%, 12.5%, 15%,
Enterprise income tax Taxable income
16.5%, 25%
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%
Development fee for cultural undertakings Taxable service income subject to tax laws Tax exemption
Disclosure of taxpayers with different rates of enterprise income tax:
Taxpayer Rate of enterprise income tax
Bio Products Laboratory Holdings Limited Tax exemption
Hunan Happy Sunshine Interactive Entertainment Media Co.,
Tax exemption
Ltd.
Horgos Happy Sunshine Media Co., Ltd. Tax exemption
Mango Studios Co., Ltd. Tax exemption
Hunan Mango Entertainment Co., Ltd. Tax exemption
Hunan Happy Mangofun Technology Co., Ltd. Tax exemption
Hunan Tianyu Film and Television Production Co. Ltd. Tax exemption
Shanghai Mangofun Technology Co., Ltd. 12.5%
Hunan Happy Money Microfinance Co., Ltd. 12.5%
Happigo Cloud Providers Trading (Hong Kong) Co., Limited 8.25%, 16.5%[note]
Dameiren Global Trading Co., Limited 8.25%, 16.5%[note]
Mgtv.com (Hong Kong) Media Company Limited 8.25%, 16.5%[note]
Other taxpayers excluding above ones 25%
2. Tax incentives
1. The Company’s subsidiaries, including Happy Sunshine, Mango Studios, Mango Entertainment, Hunan
Happy Mangofun Technology Co., Ltd., Hunan Tianyu Film and Television Production Co. Ltd. and Happigo Co.,
Ltd. are enterprises transformed from cultural public institutions with for-profit operations. 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 issued by the Ministry of
Finance, the State Taxation Administration, and the Publicity Department of the CPC Central Committee (Cai
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Shui (2019) No. 16) on February 2019, cultural enterprises transformed are qualified to be exempt from enterprise
income tax within five years from January 1, 2019.
2. The Company’s sub-subsidiary, Horgos Happy Sunshine Media Co., Ltd., is an enterprise within the scope
defined in the Notice of the Ministry of Finance, the State Administration of Taxation, the National Development
and Reform Commission, and the Ministry of Industry and Information Technology on Publishing the Catalogue
of Enterprise Income Tax Incentives for Industries Particularly Encouraged by Poverty Areas of Xinjiang for
Development (Trial) (Cai Shui (2011) No. 60). In accordance with the requirements in the Notice on Enterprise
Income Tax Incentive Policies for Enterprises in Two Special Economic Development Zones Including Kashgar
and Horgos Economic Development Zones in Xinjiang (Cai Shui (2011) No. 112), enterprises in such scope can be
exempted from enterprise income tax within five years consecutively, starting from the first year in which
manufacturing or business operational revenue is earned in the period from January 1, 2010 to December 31, 2020.
Horgos Happy Sunshine Media Co., Ltd. is exempted from enterprise income tax within five years from 2018 as it
earned its first manufacturing or business operational revenue in 2018.
3. The Company’s subsidiary, Mangofun, has been evaluated as a software enterprise in accordance with the
requirements in Several Policies on Further Encouraging the Development of the Software and Integrated Circuit
Industries (Guo Fa (2011) No. 4) and the Evaluation Standard for Software Enterprises, and received the new
certificate numbered in Hu RQ-2017-0370 with a valid term of 1 year on July 30, 2019 after passing the annual
verification. In accordance with the Notice of the Ministry of Finance, the State Administration of Taxation on
Enterprise Income Tax Policies for Further Encouraging the Development of Software and Integrated Circuit
Industries (Cai Shui (2012) No. 27), Mangofun’s tax incentive period should commence from 2017, the first year
of earning profits, which means Mangofun can be exempted from enterprise income tax from the first year to the
second year, and is eligible for a reduction half (i.e. 25%) from the third year to the fifth year until the tax
incentive period expires.
4. The Company’s subsidiary, Hunan Happy Money Microfinance Co., Ltd., was recognized as a software
enterprise by Huanan Software Industry Association on August 5, 2020, and obtained a Software Enterprise
Certificate (Xiang RQ-2020-0050). The Company paid the enterprise income tax at the reduced tax rate of 12.5%
in 2020.
5. In accordance with the Announcement on Relevant Policies for Deepening the Value-Added Tax Reform
(Announcement No. 39 by the Ministry of Finance, the State Taxation Administration and the General
Administration of Customs in 2019), VAT taxpayers in production and life service industry are allowed to credit
the amount of input tax deductible in the current period plus 10% thereof against the amount of taxes payable
from April 1, 2019 to December 31, 2021.
6. 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 in a reduction of 50%.
7. In accordance with the Announcement on Taxation Support Policies for Film and Other Industries
(Announce No. 25 issued by the Ministry of Finance and the State Administration of Taxation in 2020), the
Company is exempted from cultural undertaking construction fees from January 1, 2020 to December 31, 2020.
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3. Others
[Note] The Company’s subsidiaries, Happigo Cloud Providers Trading (Hong Kong) Co., Limited, Dameiren
Global Trading Co., Limited, Mamma Mia Global Trading Co., Limited, and Mgtv.com (Hong Kong) Media
Company Limited, are all enterprises incorporated in Hong Kong. From April 1, 2018, their enterprise income
taxes are paid in two level, namely, at a rate of 8.25% for the profits equal to or below HKD 2 million, and at a
rate of 16.5% for the remaining profits over HKD 2 million.
VII. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
In: RMB
Item Closing balance Opening balance
Cash on hand 86,976.40 104,219.13
Bank deposits 5,317,984,735.78 5,024,849,713.74
Other monetary funds: 18,248,074.52 39,270,648.59
Total 5,336,319,786.70 5,064,224,581.46
Total amount of funds restricted in use due
21,856,302.69 23,149,082.30
to mortgage, pledge or freezing, etc.
Other descriptions:
In the closing balance of bank balances, the amount of RMB1,000.00 using as POS deposits and the amount of
RMB21,625,225.00 frozen due to litigation are restricted to use.
In the closing balance of other monetary funds, the amount of RMB230,077.69 using as third-party deposits are restricted to use.
2. Notes receivable
(1) Presentation of notes receivable by category
In: RMB
Item Closing balance Opening balance
Bank acceptances 95,456,357.50
Total 95,456,357.50
In: RMB
Closing balance Opening balance
Gross carrying Provisions for Gross carrying Provisions for bad
Category Carrying Carrying
amount doubtful debts amount debts
amount amount
Amount Proportio Amount Proportio Amount Proportio Amount Proportio
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2020 Annual Report of Mango Excellent Media Co., Ltd.
n (%) n (%) n (%) n (%)
Notes receivable for
which the provision 95,456,35 95,456,35
100.00%
for bad debts are 7.50 7.50
made individually
Including:
95,456,35 95,456,35
Bank acceptances 100.00%
7.50 7.50
Including:
95,456,35 95,456,35
Total 100.00%
7.50 7.50
Provisions for bad debts made individually:
In: RMB
Closing balance
Name
Gross carrying amount Provisions for bad debts Proportion (%) Reason for provisions
Provisions for bad debts made by group:
In: RMB
Closing balance
Name
Gross carrying amount Provisions for bad debts Proportion (%)
Descriptions of basis for determining the group:
If a provision for bad debts is made for notes receivable in accordance with the general model of expected credit losses (hereinafter
referred to as “ECL”), please disclose relevant information on provisions for bad debts with reference to the disclosure method of
other receivables.
□ Applicable √ N/A
(2) Notes receivable of the Company that have been endorsed or discounted and are not yet due as of the
balance sheet date at the end of the period
In: RMB
Balance derecognized at the end of the Balance not derecognized at the end of the
Item
period period
Total 0.00 0.00
3. Accounts receivable
(1) Disclosure of accounts receivable by category
In: RMB
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Closing balance Opening balance
Gross carrying Provisions for bad Gross carrying Provisions for bad
Category amount debts Carrying amount debts Carrying
Proportio Proportio amount Proportio Proportio amount
Amount Amount Amount Amount
n (%) n (%) n (%) n (%)
Accounts receivable
for which the
70,540,3 49,824,6 20,715,70 39,878,13 26,084,59 13,793,535.
provision for bad 2.26% 70.63% 1.58% 65.41%
38.97 33.16 5.81 1.10 6.10 00
debts are made
individually
Including:
Accounts receivable
for which the
3,053,56 97,582,6 2,955,980 2,483,359 73,011,47 2,410,348,2
provision for bad 97.74% 3.20% 98.42% 2.94%
3,568.97 01.83 ,967.14 ,692.94 3.85 19.09
debts are made by
group
Including:
3,124,10 147,407, 2,976,696 2,523,237 99,096,06 2,424,141,7
Total 100.00% 4.72% 100.00% 3.93%
3,907.94 234.99 ,672.95 ,824.04 9.95 54.09
Provisions for bad debts made individually:
In: RMB
Closing balance
Name
Gross carrying amount Provisions for bad debts Proportion (%) Reason for provisions
Likely to be
The First 17,205,050.00 5,161,515.00 30.00%
non-recoverable
Likely to be
The Second 13,800,000.00 7,821,226.41 56.68%
non-recoverable
Expected to be
The Third 9,701,037.77 9,701,037.77 100.00%
non-recoverable
Expected to be
The Fourth 5,832,200.00 5,832,200.00 100.00%
non-recoverable
Expected to be
The Fifth 5,419,890.00 5,419,890.00 100.00%
non-recoverable
Expected to be
The Sixth 3,880,651.10 3,880,651.10 100.00%
non-recoverable
Likely to be
The Seventh 3,000,000.00 830,187.68 27.67%
non-recoverable
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Likely to be
The Eighth 3,000,000.00 2,830,188.68 94.34%
non-recoverable
Likely to be
The Ninth 2,500,000.00 2,146,226.42 85.85%
non-recoverable
Expected to be
The Tenth 1,676,100.00 1,676,100.00 100.00%
non-recoverable
Expected to be
Other 4,525,410.10 4,525,410.10 100.00%
non-recoverable
Total 70,540,338.97 49,824,633.16 -- --
Provisions for bad debts made individually:
In: RMB
Closing balance
Name
Gross carrying amount Provisions for bad debts Proportion (%) Reason for provisions
Provisions for bad debts made by group:
In: RMB
Closing balance
Name
Carrying amount Provisions for bad debts Proportion (%)
Aging group 2,182,153,749.12 97,582,601.83 4.47%
Group of receivables from
related parties controlled by the 871,409,819.85
same de facto controller
Total 3,053,563,568.97 97,582,601.83 --
Description of basis for determining the group:
Provisions for bad debts made by group:
In: RMB
Closing balance
Name
Carrying amount Provisions for bad debts Proportion (%)
Within 1 year (including) 1,506,542,196.23 48,513,510.47 3.22%
More than 1 year but not
619,437,957.15 39,614,172.99 6.40%
exceeding 2 years
More than 2 years but not
51,088,622.86 5,699,607.53 11.16%
exceeding 3 years
More than 3 years but not 1,811,809.75 696,092.24 38.42%
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2020 Annual Report of Mango Excellent Media Co., Ltd.
exceeding 4 years
More than 4 years but not
1,641,771.91 1,427,827.38 86.97%
exceeding 5 years
More than 5 years 1,631,391.22 1,631,391.22 100.00%
Total 2,182,153,749.12 97,582,601.83 --
Description of basis for determining the group:
Provisions for bad debts made by group:
In: RMB
Closing balance
Name
Carrying amount Provisions for bad debts Proportion (%)
Description of basis for determining the group:
If a provision for bad debts is made for accounts receivable in accordance with the general model of expected credit losses, please
disclose relevant information on provisions for bad debts with reference to the disclosure method of other receivables.
□ Applicable √ N/A
Disclosure by aging
In: RMB
Aging Carrying amount
Within 1 year (including) 2,382,081,553.85
More than 1 year but not exceeding 2 years 663,676,910.15
More than 2 years but not exceeding 3 years 55,911,327.16
More than 3 years 22,434,116.78
More than 3 years but not exceeding 4 years 2,568,413.55
More than 4 years but not exceeding 5 years 1,641,771.91
More than 5 years 18,223,931.32
Total 3,124,103,907.94
(2) 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
Provision for bad 26,084,596.10 24,490,037.06 750,000.00 49,824,633.16
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2020 Annual Report of Mango Excellent Media Co., Ltd.
debts made
individually
Provision for bad
debts made by 73,011,473.85 25,343,290.31 772,162.33 97,582,601.83
group
Total 99,096,069.95 49,833,327.37 750,000.00 772,162.33 147,407,234.99
Significant recovery or reversal of bad debt provision for the current period:
In: RMB
Name Amount of recovery or reversal Method of recovery
(3) Notes receivable actually written off for the current period
In: RMB
Item Write-off amount
Loan 772,162.33
Information of significant accounts receivable that are written off:
In: RMB
If the payments is
Nature of accounts Write-off procedures generated from the
Name Write-off amount Reason for write-off
receivable performed related party
transactions
Description of write-off of accountants receivable:
(4) Top five closing balances of accounts receivable categorized by debtor
In: RMB
Closing balance of accounts % of total closing balance of Closing balance of provisions for
Entities
receivable accounts receivable bad debts
The First 290,175,195.53 9.29%
The Second 249,955,809.88 8.00% 2,947,503.92
The Third 214,923,447.92 6.88%
The Fourth 164,336,587.00 5.26%
The Fifth 156,250,000.00 5.00% 7,812,500.00
Total 1,075,641,040.33 34.43%
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2020 Annual Report of Mango Excellent Media Co., Ltd.
4. Receivable financing
In: RMB
Item Closing balance Opening balance
Notes receivable 164,410,000.00
Total 164,410,000.00
Increase or decrease of receivable financing for the current period and changes in its fair value
□ Applicable √ N/A
If a provision for impairment is made for receivable financing in accordance with the general model of expected credit losses, please
disclose relevant information on the provisions for impairment with reference to the disclosure method of other receivables.
□ Applicable √ N/A
Other descriptions:
At the end of the period, the Company has no notes receivable that have been endorsed or discounted and are
not yet due as of the balance sheet date
5. Prepayments
(1) Presentation of prepayments by aging
In: RMB
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 1,056,611,336.10 75.56% 704,974,422.77 62.51%
More than 1 year but not
141,828,262.96 10.14% 132,081,812.20 11.71%
exceeding 2 years
More than 2 years but not
95,580,817.91 6.84% 195,519,392.56 17.34%
exceeding 3 years
More than 3 years 104,329,736.75 7.46% 95,158,498.75 8.44%
Total 1,398,350,153.72 -- 1,127,734,126.28 --
Reasons for overdue settlement of prepayments with significant amounts and aged more than 1 year:
Entity Gross carrying amount Reasons for unsettlement
86,556,603.68 Prepayments for copyrights
The First
pending broadcasting
The Second 57,816,250.00 Undelivered goods
54,235,437.00 Prepayments for copyrights
The Third
pending broadcasting
The Fourth 49,999,516.00 Undelivered goods
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2020 Annual Report of Mango Excellent Media Co., Ltd.
45,283,019.04 Prepayments for copyrights
The Fifth
pending broadcasting
The Sixth 42,915,750.00 Undelivered goods
Sub-total 336,806,575.72
(2) Top five closing balances of prepayments categorized by receivers
Entity Gross carrying amount Proportion to total
prepayments (%)
The First 224,056,603.68 14.67
The Second 128,399,815.62 8.41
The Third 93,597,918.79 6.13
The Fourth 83,005,169.06 5.44
The Fifth 70,754,717.25 4.63
Sub-total 599,814,224.40 39.28
Other descriptions:
The bad-debt provision made and reversed in the current period was RMB52,414,642.28 and
RMB30,997,600.00 respectively, without actual write-off of bed-debt provision for prepayments.
6. Other receivables
In: RMB
Item Closing balance Opening balance
Other receivables 51,168,090.47 35,946,262.96
Total 51,168,090.47 35,946,262.96
(1) Other receivables
1) Category of other receivables by nature
In: RMB
Gross carrying amount at the end of the Gross carrying amount at the beginning of
Nature
period the period
Security deposit 17,122,521.77 18,036,931.78
Amount due to or from related parties 3,928,869.69 3,640,174.50
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Suspense payments receivable 3,787,622.67 2,911,186.43
Petty cash 8,384,709.56 9,084,428.85
Receivables and payables 22,452,844.09 5,508,622.75
Total 55,676,567.78 39,181,344.31
2) Provisions for bad debts
In: RMB
Stage I Stage II Stage III
Provisions for bad debts Future 12-month Lifetime ECL (without Lifetime ECL (with credit Total
ECL credit impairment) impairment)
Balance as at January 1,
410,810.45 139,608.94 2,684,661.96 3,235,081.35
2020
Balance as at January 1,
—— —— —— ——
2020 transferred to
-- Stage II -45,262.91 45,262.91
-- Stage III -83,439.55 83,439.55
Provision 466,220.39 44,728.99 762,446.58 1,273,395.96
Balance as at December
831,767.93 146,161.29 3,530,548.09 4,508,477.31
31, 2020
Changes in gross carrying amount whose loss allowance changed significantly in the current period
□ Applicable √ N/A
Disclosure by aging
In: RMB
Aging Carrying amount
Within 1 year (including) 34,177,378.24
More than 1 year but not exceeding 2 years 7,990,859.07
More than 2 years but not exceeding 3 years 3,624,448.03
More than 3 years 9,883,882.44
More than 3 years but not exceeding 4 years 693,986.96
More than 4 years but not exceeding 5 years 4,312,397.25
More than 5 years 4,877,498.23
Total 55,676,567.78
3) Provisions, recovery or reversal of bad debts for the period
Provisions for bad debts made for the current period
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2020 Annual Report of Mango Excellent Media Co., Ltd.
In: RMB
Changes for the current period
Opening
Category Recovery or Closing balance
balance Provision Write-off Others
reversal
Provision for bad
debts made 1,661,929.89 99,412.94 1,761,342.83
individually
Provision for bad
debts made by 1,573,151.46 1,173,983.02 2,747,134.48
group
Total 3,235,081.35 1,273,395.96 4,508,477.31
Significant recovery or reversal of provisions for bad debts for the current period:
In: RMB
Entity Amount of recovery or reversal Method of recovery
4) Top five closing balances of other receivables categorized by debtor
In: RMB
% of total closing Closing balance of
Entity Nature Closing balance Aging balance of other provisions for bad
receivables debts
Receivables and
The First 8,400,000.00 Within 1 year 15.09% 84,000.00
Payables
More than 4 years
Amount due to or but not exceeding 5
The Second 2,629,764.69 4.72% 1,564,882.35
from related parties years, more than 5
years
Receivables and
The Third 2,006,200.00 Within 1 year 3.60% 100,310.00
Payables
More than 1 year but
The Fourth Security deposit 2,000,000.00 not exceeding 2 3.59%
years
Within 1 year, more
than 2 years but not
exceeding 3 years,
The Fifth Security deposit 1,321,183.96 more than 3 years 2.38%
but not exceeding 4
years, more than 5
years
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Total -- 16,357,148.65 -- 29.38% 1,749,192.35
7. 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 Gross carrying Gross carrying
for impairment of Carrying amount for impairment of Carrying amount
amount amount
contract contract
performance performance
costs costs
Raw materials 110,321,511.87 110,321,511.87 119,569,809.53 119,569,809.53
Work-in-progress 1,048,703,826.21 76,390,171.65 972,313,654.56 1,393,906,522.76 74,642,083.76 1,319,264,439.00
Goods on hand 571,736,351.42 754,367.83 570,981,983.59 468,194,587.57 4,406,332.80 463,788,254.77
Goods upon
5,911,092.71 5,911,092.71 12,502,049.88 12,502,049.88
delivery
Other reusable
796,365.36 796,365.36 1,250,785.71 1,250,785.71
materials
Total 1,737,469,147.57 77,144,539.48 1,660,324,608.09 1,995,423,755.45 79,048,416.56 1,916,375,338.89
(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 Recovery or Closing balance
Provision Others Others
reversal
Work-in-progress 74,642,083.76 1,748,087.89 76,390,171.65
Goods on hand 4,406,332.80 423,571.89 4,075,536.86 754,367.83
Total 79,048,416.56 2,171,659.78 4,075,536.86 77,144,539.48
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 reversal of provision for decline in value of inventories in the current
period.
The Company’s provision for decline in value of work-in-progress was made mainly because The Herstory,
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2020 Annual Report of Mango Excellent Media Co., Ltd.
a TV drama, was unable to be released after a release license was obtained therefor on November 28, 2016 due to
restrictions in broadcasting. Accordingly, the provision for decline in value was fully made.
8. Contract assets
In: RMB
Closing balance Opening balance
Item Gross carrying Provisions for Carrying Gross carrying Provisions for
Carrying amount
amount impairment amount amount impairment
Operator business 860,346,222.69 42,894,826.13 817,451,396.56 602,550,398.49 29,681,643.76 572,868,754.73
Total 860,346,222.69 42,894,826.13 817,451,396.56 602,550,398.49 29,681,643.76 572,868,754.73
Significant changes in the carrying amount of contract assets for the current period and reasons therefor:
In: RMB
Item Changes Reason for changes
If a provision for bad debts is made for contract assets in accordance with the general model of expected credit losses, please disclose
relevant information on provisions for bad debts with reference to the disclosure method of other receivables.
□ Applicable √ N/A
Information of the provisions for impairment made for contract assets for the period
In: RMB
Removal/write-off for the
Item Provisions for the period Reversal for the period Reason
period
Operator business 13,213,182.37 Made by group
Total 13,213,182.37 --
Other descriptions:
The difference between the opening balance of the current year and the closing balance of the previous year (as at December 31,
2019) represents the adjustment made in accordance with the new revenue standard.
9. Other current assets
In: RMB
Item Closing balance Opening balance
Prepayments for internet access
19,816,194.13 45,657,300.81
cooperation
Input VAT to be deducted 87,304,605.69 33,725,081.91
Prepaid taxes and levies 2,425,615.08 6,115,482.85
Issued loans-credit loans [Note] 6,034,159.32 1,803,532.21
Issued loans-mortgage loans [Note] 399,965,532.81 395,395,091.01
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Others 4,541,557.17 8,582,425.11
Total 520,087,664.20 491,278,913.90
Other descriptions:
[Note] For issued loan group, the provision for impairment of loan losses amounted to RMB2,230,274.05 for the current period.
10. Long-term equity investments
In: RMB
Increase or decrease for the period
Closing
Opening Investment Closing
Adjustment Declared balance of
balance profit or Other Provisions balance
Investee Additional Decreased in other cash provisions
(carrying loss under equity for Others (carrying
investment investment comprehens dividends for bad
amount) equity changes impairment amount)
ive income or profits debts
method
I. Joint ventures
II. Associates
Shanghai
Mama
Mia
Mutual
Entertain 20,621,72 2,261,243 22,882,96
ment 6.36 .15 9.51
Network
Technolo
gy Co.,
Ltd.
Malansha
n Culture
Creative 189,814,4 189,295,8 -518,632.
Investme 52.82 20.20 62
nt Co.,
Ltd.
210,436,1 189,295,8 1,742,610 22,882,96
Sub-total
79.18 20.20 .53 9.51
210,436,1 189,295,8 1,742,610 22,882,96
Total
79.18 20.20 .53 9.51
Other descriptions
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2020 Annual Report of Mango Excellent Media Co., Ltd.
11. Other non-current financial assets
In: RMB
Item Closing balance Opening balance
Classified as financial assets at fair value
6,946,466.60
through profit or loss
Total 6,946,466.60
Other descriptions:
12. Fixed assets
In: RMB
Item Closing balance Opening balance
Fixed assets 186,924,296.25 180,606,150.34
Total 186,924,296.25 180,606,150.34
(1) Fixed assets
In: RMB
Electronic
Machinery and equipment, Transportation
Item Buildings Others Total
equipment appliances and equipment
furniture
I. Original
carrying amount
1.Opening
58,268,091.66 268,694,025.62 238,194,727.92 22,103,860.11 11,000,000.00 598,260,705.31
balance
2. Increase 22,655,301.67 28,238,262.44 1,039,000.00 51,932,564.11
(1)Purchase 22,655,301.67 28,238,262.44 1,039,000.00 51,932,564.11
(2)Transfer
from construction
in progress
(3)Increase
due to business
combination
3. Decrease 1,970,034.18 2,570,730.51 4,800,226.76 9,340,991.45
(1) Disposal
1,970,034.18 2,570,730.51 4,800,226.76 9,340,991.45
or retirement
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2020 Annual Report of Mango Excellent Media Co., Ltd.
4. Closing
58,268,091.66 289,379,293.11 263,862,259.85 18,342,633.35 11,000,000.00 640,852,277.97
balance
II. Accumulated
depreciation
1. Opening
8,781,163.86 224,166,288.74 169,592,587.55 14,709,777.66 417,249,817.81
balance
2. Increase 1,908,705.38 18,796,528.77 22,435,787.87 1,688,194.06 44,829,216.08
(1) Provision 1,908,705.38 18,796,528.77 22,435,787.87 1,688,194.06 44,829,216.08
3. Decrease 1,886,063.67 2,067,512.87 4,595,576.45 8,549,152.99
(1) Disposal
1,886,063.67 2,067,512.87 4,595,576.45 8,549,152.99
or retirement
4. Closing
10,689,869.24 241,076,753.84 189,960,862.55 11,802,395.27 453,529,880.90
balance
III. Provision for
impairment
1. Opening
392,428.73 12,308.43 404,737.16
balance
2. Increase
(1) Provision
3. Decrease 1,340.46 5,295.88 6,636.34
(1)Disposal
1,340.46 5,295.88 6,636.34
or retirement
4. Closing
391,088.27 7,012.55 398,100.82
balance
VI. Book value
1. Closing
47,578,222.42 47,911,451.00 73,894,384.75 6,540,238.08 11,000,000.00 186,924,296.25
balance
2. Opening
49,486,927.80 44,135,308.15 68,589,831.94 7,394,082.45 11,000,000.00 180,606,150.34
balance
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2020 Annual Report of Mango Excellent Media Co., Ltd.
13. Intangible assets
(1) Intangible assets
In: RMB
Patent
Film and licensing
Trademarks
Land use Non-patent television fees and Game
Item Patent Software and domain Total
right technology play program copyright
names
copyright adaptation
rights
I. Original
carrying
amount:
1.
33,157,507. 12,128,370, 161,081,841 2,884,994.2 29,245,283. 5,934,212.5 12,360,674,
Opening
40 818.55 .49 9 01 7 657.31
balance
2. 5,354,703,2 40,852,398. 11,415,094. 2,661,202.7 5,409,914,9
283,018.87
Increase 10.18 75 34 2 24.86
(1) 5,354,703,2 24,880,173. 11,415,094. 2,661,202.7 5,393,942,6
283,018.87
Purchase 10.18 56 34 2 99.67
(2)
Internal
research 15,972,225. 15,972,225.
and 19 19
developmen
t
(3)
Increase
due to
business
combination
s
3. 534,855,398 1,405,910.6 536,261,308
Decrease .24 8 .92
(1) 534,855,398 1,405,910.6 536,261,308
Disposal .24 8 .92
4. 33,157,507. 16,948,218, 201,934,240 3,168,013.1 40,660,377. 7,189,504.6 17,234,328,
Closing 40 630.49 .24 6 35 1 273.25
198
2020 Annual Report of Mango Excellent Media Co., Ltd.
balance
II.
Accumulate
d
amortizatio
n
1.
5,808,202.7 7,414,542,9 68,223,301. 2,736,213.1 14,002,683. 4,283,315.6 7,509,596,6
Opening
8 21.65 71 5 09 9 38.07
balance
2. 4,337,288,9 19,075,540. 5,593,921.1 2,495,853.3 4,365,366,9
676,683.82 235,960.75
Increase 92.15 92 6 8 52.18
(1) 4,337,288,9 19,075,540. 5,593,921.1 2,495,853.3 4,365,366,9
676,683.82 235,960.75
Provisions 92.15 92 6 8 52.18
3. 534,855,398 535,089,716
234,318.44
Decrease .24 .68
(1) 534,855,398 535,089,716
234,318.44
Disposal .24 .68
4.
6,484,886.6 11,216,976, 87,298,842. 2,972,173.9 19,596,604. 6,544,850.6 11,339,873,
Closing
0 515.56 63 0 25 3 873.57
balance
III.
Provisions
for
impairment
1.
Opening
balance
2.
Increase
(1)
Provisions
3.
Decrease
(1)
Disposal
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2020 Annual Report of Mango Excellent Media Co., Ltd.
4.
Closing
balance
IV. Book
value
1.
26,672,620. 5,731,242,1 114,635,397 21,063,773. 5,894,454,3
Closing 195,839.26 644,653.98
80 14.93 .61 10 99.68
balance
2.
27,349,304. 4,713,827,8 92,858,539. 15,242,599. 1,650,896.8 4,851,078,0
Opening 148,781.14
62 96.90 78 92 8 19.24
balance
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: 0.13%.
14. Development expenditure
In: RMB
Increase Decrease
Opening In-house Recognized Transfer to Closing
Item
balance development Others intangible profit or loss balance
expenditure assets for the period
Mangoli 12,899,556.9 15,972,225.1
3,072,668.27
system 2 9
Cloud
platform 25,439,326.9 125,750,660. 151,189,987.
construction 2 43 35
project
Smart credit
6,074,244.50 6,074,244.50
system
38,338,883.8 134,897,573. 15,972,225.1 157,264,231.
Total
4 20 9 85
Other descriptions
1) The Mangoli System is a project developed by Hunan Happy Money Microfinance Co., Ltd. It is intended to solve problems
such as underlying data security, system compatibility, and iterative expansion., and to improve the financial technology ability, so
that the system can support businesses more significantly.
The Mangoli System began its market research in October 2018, and was established in December 2018. As it has been eligible
for capitalization and recognition in the development expenses since January 2019, the expenses related to the project that are eligible
for capitalization are included in the development expenses, and the expenses incurred in the previous research phase are directly
recognized in the current profit and loss.
2) Mongo TV Cloud Storage and Multi-screen Broadcast Platform Construction Project (“Cloud Platform Construction
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Project”) is a supporting project funded by Happy Sunshine financing funds. This project, which is intended to provide enhanced
platform technology support for enterprise content production and dissemination to improve users’ experience and satisfaction,
reduce platform operating costs and enhance platform data security and reliability, is an inevitable choice for the strategic
development of enterprises in the fierce competition.
The Cloud Platform Construction Project was planned in 2017 and implemented upon approval of the board meeting of Happy
Sunshine on July 30, 2019. From September 1, 2019, the expenses related to the project that are eligible for capitalization are
included in the development expenses, and the expenses incurred in the previous research phase are directly recognized in the current
profit or loss.
3) The Smart Credit System aims to create diversified credit products, quickly adapt to different customer groups in the market,
and realize smart monitoring and customer management after loan. From May 2020, the expenses related to the project that are
eligible for capitalization are included in the development expenses, and the expenses in the previous research stage are directly
recognized in the current profit or loss.
15. Long-term prepaid expenses
In: RMB
Item Opening balance Increase Amortization Other decrease Closing balance
Projects of
rebuilding and
61,646,861.37 41,387,062.61 25,691,871.99 77,342,051.99
decoration for rented
buildings
Total 61,646,861.37 41,387,062.61 25,691,871.99 77,342,051.99
Other descriptions
16. Deferred income tax assets/deferred income tax liabilities
(1) Details of unrecognized deferred tax assets
In: RMB
Item Closing balance Opening balance
Deductible temporary differences 19,411,205.95 9,364,947.85
Deductible losses 106,310,201.58 80,994,642.11
Total 125,721,407.53 90,359,589.96
(2) Deductible losses, for which no deferred income tax assets are recognized, will expire in the following
year
In: RMB
Year Closing balance Opening balance Note
2021 390,483.62 1,923,827.66
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2022 18,240,181.33 24,850,507.66
2023 34,021,526.74 34,021,526.74
2024 3,629,802.99 20,198,780.05
2025 50,028,206.90
Total 106,310,201.58 80,994,642.11 --
Other descriptions:
17. Other non-current assets:
In: RMB
Closing balance Opening balance
Gross Provisions Gross Provisions
Item Carrying Carrying
carrying for carrying for
amount amount
amount impairment amount impairment
Prepayments for equipment 2,023,481.01 2,023,481.01 1,127,499.30 1,127,499.30
Total 2,023,481.01 2,023,481.01 1,127,499.30 1,127,499.30
Other descriptions:
18. Short-term borrowings
(1) Category of short-term borrowings
In: RMB
Item Closing balance Opening balance
Credit borrowings 39,731,500.00 349,352,600.00
Credit borrowings - interest 57,610.68 464,347.83
Total 39,789,110.68 349,816,947.83
Descriptions of categorization of short-term borrowings:
19. Notes payable
In: RMB
Category Closing balance Opening balance
Commercial acceptances 221,862,982.11 42,502,468.46
Bank acceptances 490,429,053.64 283,377,994.65
Total 712,292,035.75 325,880,463.11
The total of notes payable due but not yet paid for the period is RMB0.00.
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20. Accounts payable
(1) Accounts payable
In: RMB
Item Closing balance Opening balance
Purchase payment 5,217,087,330.62 5,048,443,928.94
Total 5,217,087,330.62 5,048,443,928.94
(2) Significant accounts payable aged not less than one year
In: RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
The First 159,000,000.00 Not yet due for settlement
The Second 108,800,000.00 Not yet due for settlement
The Third 100,828,305.14 Not yet due for settlement
The Fourth 50,395,471.69 Not yet due for settlement
The Fifth 41,254,117.83 Not yet due for settlement
The Sixth 43,716,981.13 Not yet due for settlement
The Seventh 40,080,000.00 Not yet due for settlement
Total 544,074,875.79 --
Other descriptions:
21. Contract liabilities
In: RMB
Item Closing balance Opening balance
Loan 663,307,479.05 661,047,311.39
Investments in film and television play
146,186,845.74 509,228,175.11
co-production
Membership service 520,980,698.31 247,314,991.08
Total 1,330,475,023.10 1,417,590,477.58
Significant changes in the carrying amount during the Reporting Period and reasons therefor:
In: RMB
Item Changes Reason for changes
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22. Employee benefits payable
(1) Employee benefits payable
In: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term
588,179,880.34 1,537,987,554.31 1,269,710,835.76 856,456,598.89
remuneration
II. Post-employment
benefits-defined 643,815.52 5,029,951.47 5,607,986.15 65,780.84
contribution plan
III. Termination benefits 535,555.88 10,847,634.33 11,192,742.10 190,448.11
Total 589,359,251.74 1,553,865,140.11 1,286,511,564.01 856,712,827.84
(2) Short-term remuneration
In: RMB
Item Opening balance Increase Decrease Closing balance
1. Wages or salaries,
bonuses, allowances and 586,902,865.99 1,465,776,621.36 1,197,601,119.27 855,078,368.08
subsidies
2. Staff welfare 21,834,085.95 21,834,085.95
3. Social security
373,917.63 18,161,113.40 18,215,659.12 319,371.91
contributions
Including: Medical
329,348.26 15,702,153.43 15,721,473.35 310,028.34
insurance
Work injury 12,559.86 136,174.53 146,443.20 2,291.19
Maternity
32,009.51 385,543.17 410,500.30 7,052.38
insurance
Other commercial
1,937,242.27 1,937,242.27
insurance
4. Housing funds 250,246.00 28,565,216.52 28,490,787.29 324,675.23
5. Union running costs
and employee education 102,072.57 3,650,517.08 3,018,405.98 734,183.67
cost
Other short-term
550,778.15 550,778.15
remuneration
Total 588,179,880.34 1,537,987,554.31 1,269,710,835.76 856,456,598.89
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(3) Defined benefit plan
In: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pensions 615,832.84 4,849,475.73 5,402,303.94 63,004.63
2. Unemployment
27,982.68 180,475.74 205,682.21 2,776.21
insurance
Total 643,815.52 5,029,951.47 5,607,986.15 65,780.84
Other descriptions:
23. Taxes payable
In: RMB
Item Closing balance Opening balance
VAT 17,317,973.41 31,925,708.15
Enterprise income tax 4,183,186.13 1,020,008.15
Personal income tax 17,925,339.96 11,616,474.32
City maintenance and construction tax 422,228.46 611,160.04
Stamp duty 2,395,805.75 2,556,733.85
Educational surcharges 315,577.50 533,271.72
Development Fees for Cultural
88,789,083.88 89,141,920.66
Undertakings
Other taxes 178,690.86 158,231.76
Total 131,527,885.95 137,563,508.65
Other descriptions:
24. Other payables
In: RMB
Item Closing balance Opening balance
Other payables 160,651,194.91 202,952,467.24
Total 160,651,194.91 202,952,467.24
(1) Other payables
1) Other payables by nature
In: RMB
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Item Closing balance Opening balance
Receivables and payables 131,046,966.11 171,975,402.58
Security deposit 29,604,228.80 30,977,064.66
Total 160,651,194.91 202,952,467.24
2) Other significant payables aged not less than one year
In: RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
The First 3,784,547.60 Not yet due for settlement
Total 3,784,547.60 --
Other descriptions
25. Non-current liabilities due within one years
In: RMB
Item Closing balance Opening balance
Long-term employee benefits payable due
10,400,000.00
within 1 year
Total 10,400,000.00
Other information:
26. Other current liabilities
In: RMB
Item Closing balance Opening balance
Logistics and distribution expenses 1,909,886.62 3,391,046.30
Output tax to be transferred 106,261,801.24 45,541,221.04
Internet access cooperation 24,923,744.58 52,969,657.49
Others 5,603,393.15 13,835,329.26
Total 138,698,825.59 115,737,254.09
Changes in short-term bonds payable:
In: RMB
Interest Amortizat Repayme
Name of Term of Issue Opening Issue for Closing
Par value Issue date accrued ion of nt for the
bond bond amount balance the period balance
based on premiums period
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2020 Annual Report of Mango Excellent Media Co., Ltd.
par value or
discounts
Other descriptions:
The difference between the opening balance of the current year and the closing balance of the previous year (as at December 31,
2019) can be referred to the descriptions in Note V 29, Changes in significant accounting policies and accounting estimates.
27. Provisions
In: RMB
Item Closing balance Opening balance Reason
Estimated compensation for
Pending litigation 8,305,486.15 14,092,872.30
pending litigation
Provision for infringement
140,000.00 Estimated compensation
compensation
Total 8,305,486.15 14,232,872.30 --
Other descriptions, including important assumptions and estimation explanations related to significant estimated liabilities:
28. Deferred income
In: RMB
Item Opening balance Increase Decrease Closing balance Reason
Government grants
Government grants 46,271,594.13 29,383,962.27 26,716,720.71 48,938,835.69 related to assets and
income
Total 46,271,594.13 29,383,962.27 26,716,720.71 48,938,835.69 --
Projects involving government grants
In: RMB
Amount Amount
Amount
Additional recognized offset Related to
Opening recognized Other
Liabilities government in against costs Closing balance assets/incom
balance in other changes
grants non-operatin and e
income
g income expenses
Happigo
Supply
Chain Urban Related to
2,583,002.83 100,000.00 2,483,002.83
Co-Distribut assets
ion System
Project
Special 1,015,787.96 40,229.22 975,558.74 Related to
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2020 Annual Report of Mango Excellent Media Co., Ltd.
funds for the assets
development
of the
modern
logistics
The second
batch of
special
guidance
funds of
Hunan Related to
199,999.96 199,999.96
Province to assets
cultivate and
develop
strategic
emerging
industries
Special
funds for
"Cloud Related to
1,380,000.00 1,380,000.00
Multi-screen assets
" service
platform
The second
batch of
special funds
for modern Related to
140,000.00 60,000.00 80,000.00
services assets
development
- Mango TV
mobile client
Mobile
internet
Related to
industry 4,680,677.20 2,064,638.24 2,616,038.96
assets
development
special fund
Special
funds for the
development Related to
19,200,233.36 7,750,000.00 8,456,954.89 18,493,278.47
of the assets
cultural
industry
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Guidance
funds for
provincial-le Related to
1,133,333.44 399,999.96 733,333.48
vel cultural assets
industry
development
Special
funds for the
Related to
development 180,000.00 60,000.00 120,000.00
assets
of modern
services
Special
funds for
Mongo TV
Related to
Cloud 6,000,000.00 6,000,000.00
assets
Platform
(ERU)
project
Silk Road
Film and
Television
Bridge
Project of Related to
1,132,075.48 566,037.74 566,037.74
the State assets
Administrati
on of Radio,
Film and
Television
Network
audio-visual
program
Related to
quality 258,000.00 72,000.00 186,000.00
assets
creation and
distribution
project
“Youth
Mango Related to
8,000,000.00 666,666.67 7,333,333.33
Festival” assets
project
Related to
Others 714,907.67 483,962.27 237,951.13 960,918.81
assets
Key project 622,641.51 622,641.51 Related to
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2020 Annual Report of Mango Excellent Media Co., Ltd.
of "going income
global" by
the State
Administrati
on of Radio,
Film and
Television
Guidance
fund
subsidies for
Related to
cultural 1,525,333.33 284,000.00 1,241,333.33
income
business of
Hunan
Province
Central
cultural
Related to
industry 5,000,000.00 5,000,000.00
income
development
special funds
Malanshan
cultural and Related to
333,333.33 333,333.33
creative income
subsidy
Intellectual
property Related to
172,268.06 172,268.06
subsidy income
funds
The second
batch of
special funds
for the
development Related to
8,000,000.00 8,000,000.00
of modern income
service
industry in
Hunan
Province
Mango TV
high-tech
Related to
interactive 150,000.00 150,000.00
income
video
creation
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2020 Annual Report of Mango Excellent Media Co., Ltd.
platform
project
Mango TV
international
convergence Related to
4,000,000.00 4,000,000.00
media income
communicati
on project
Mango TV
smart home Related to
1,000,000.00 1,000,000.00
page push income
project
29,383,962.2 26,716,720.7
Total 46,271,594.13 48,938,835.69
7 1
Other descriptions:
29. Share capital
In: RMB
Changes (+ or -)
Conversion of
Opening Closing
New shares equity reserve
balance Bonus shares Others Sub-total balance
issued into share
capital
1,780,377,511. 1,780,377,511.
Total shares
00 00
Other information:
30. Capital reserve
In: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (Share
4,832,673,268.51 4,832,673,268.51
capital premium)
Other capital reserve 6,264,437.84 6,264,437.84
Total 4,838,937,706.35 4,838,937,706.35
Other descriptions, including changes and reasons therefor:
31. Other comprehensive income
In: RMB
211
2020 Annual Report of Mango Excellent Media Co., Ltd.
Amount for the current period
Less:
Amount
Less: Amount included in
included in other
Amount other comprehensi
before comprehensive ve income Attributable Attributable
Opening Less: Closing
Items income tax income for the for the prior to the parent to minority
balance Income tax balance
for the prior periods periods and company interests
expenses
current and transferred transferred after tax after tax
period to the profit or to the
loss for the retained
current period earnings for
the current
period
II. Other comprehensive income
-2,759.3
to be reclassified into profit or -2,759.37 -2,759.37
7
loss
Translation differences of
-2,759.3
financial statements denominated -2,759.37 -2,759.37
7
in foreign currencies
Total of other comprehensive -2,759.3
-2,759.37 -2,759.37
income 7
Other descriptions, including adjustment of the effective part of the cash flow hedge gains and losses transferred to initially
recognized amount of hedged items:
32. Surplus reserve
In: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserve 84,782,321.71 2,357,238.43 87,139,560.14
Total 84,782,321.71 2,357,238.43 87,139,560.14
Descriptions of surplus reserve, including changes for the current period and reasons therefor:
In the current period, the surplus reserve is appropriated according to 10% of the net profit of the parent company.
33. Undistributed profit
In: RMB
Items Current period Prior period
Retained profits at the end of prior period before
2,079,761,680.01 923,476,426.28
adjustment
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Retained profits at the beginning of the period
2,079,761,680.01 923,476,426.28
after adjustment
Add: Net profit attributable to owners of the
1,982,159,476.82 1,156,285,253.73
Company for the period
Less: Appropriation to statutory surplus reserve 2,357,238.43
Distribution to owners (or shareholders) 178,037,751.10
Retained profits at the end of the period 3,881,526,167.30 2,079,761,680.01
Details of adjustments to retained profits at the beginning of the period:
1) Retained profits at the beginning of the period were affected by RMB0.00 due to the retrospective adjustment under the
Accounting Standards for Business Enterprises and related new regulations.
2) Retained profits at the beginning of the period were affected by RMB0.00 due to changes in accounting policies.
3) Retained profits at the beginning of the period were affected by RMB0.00 due to the correction of significant accounting errors.
4) Retained profits at the beginning of the period were affected by RMB0.00 due to changes in the scope of consolidation resulting
from business combination involving enterprises under common control.
5) Retained profits at the beginning of the period were affected by RMB0.00 in total due to other adjustments.
34. Operating income and operating costs
In: RMB
Amount for the current period Amount for the prior period
Item
Revenue Cost Revenue Cost
Principal operating
13,991,615,817.08 9,224,019,161.88 12,283,968,853.93 8,181,187,347.79
activities
Other operating
13,919,138.28 6,269,482.56 216,695,378.12 103,553,601.63
activities
Total 14,005,534,955.36 9,230,288,644.44 12,500,664,232.05 8,284,740,949.42
Whether the lower of the net profit after non-recurring gain or loss is negative
□ Yes √ No
Information on Revenue:
In: RMB
Category of Contract Segment 1 Segment 2 Total
Commodity type 13,992,232,833.33 13,992,232,833.33
Including:
New media platform
9,060,568,867.27 9,060,568,867.27
operation
New media interactive
2,764,980,756.83 2,764,980,756.83
entertainment content
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2020 Annual Report of Mango Excellent Media Co., Ltd.
production and operation
Media retail 2,104,532,724.46 2,104,532,724.46
Others 62,150,484.77 62,150,484.77
By region 13,992,232,833.33 13,992,232,833.33
Including:
Within Hunan 4,500,604,312.69 4,500,604,312.69
Outside Hunan 9,491,628,520.64 9,491,628,520.64
Including:
Including:
By the time of
13,992,232,833.33 13,992,232,833.33
commodity transfer
Including:
Goods (transferred at a
8,835,348,876.25 8,835,348,876.25
certain time point)
Services (rendered within
5,156,883,957.08 5,156,883,957.08
a certain time period)
Including:
Including:
Information regarding performance obligations:
None
Information regarding the transaction price allocated to the remaining 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 this Reporting Period is RMB1,330,475,023.10, among which RMB is expected to be
recognized as the revenue in , RMB is expected to be recognized as the revenue in , and RMB is
expected to be recognized as the revenue in .
Other descriptions
The revenue-related statement does not include the revenue from leasing in the amount of RMB13,302,122.03.
35. Taxes and levies
In: RMB
Item Amount for the current period Amount for the prior period
Consumption tax 280,585.49 167,486.70
City construction and maintenance tax 10,756,920.01 5,900,635.15
Education surcharges 7,721,309.79 4,437,184.38
Property tax 648,464.10 651,832.90
Land use tax 294,816.00 294,816.00
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Vehicle and vessel tax 30,730.00 24,970.00
Stamp duty 2,190,238.78 2,706,383.81
Development fees for cultural undertakings 82,219,302.29
Others 54,686.31 28,120.33
Total 21,977,750.48 96,430,731.56
Other descriptions:
36. Selling expenses
In: RMB
Item Amount for the current period Amount for the prior period
Employee’s benefits and labor costs 649,713,450.73 594,022,500.47
Depreciation and amortization 11,258,434.02 10,708,960.80
Advertising costs 1,275,774,161.48 1,175,246,290.72
Payments for internet access cooperation 104,333,924.97 200,426,442.86
Settlement costs of logistics and service
6,646,826.33 53,935,525.49
charges for payment collection (Note)
Business travel expenses 24,555,943.68 25,541,037.00
Program production costs 4,706,447.54 9,730,185.87
Channel sales and operations development
49,839,615.85 35,871,112.32
expenses
Others 37,586,465.27 35,202,099.92
Total 2,164,415,269.87 2,140,684,155.45
Other descriptions:
Note: As adjusted according to the new revenue standard, the transportation expenses for the period is presented in the main
operating costs.
37. General and administrative expenses
In: RMB
Item Amount for the current period Amount for the prior period
Employee’s benefits and labor costs 428,389,317.79 391,323,328.42
Depreciation and amortization 45,517,534.33 58,628,415.09
Legal costs 12,643,454.90 13,302,853.01
Office and administrative service 90,263,227.76 95,274,367.16
Agency fees 8,368,627.11 11,738,465.41
Business entertainment expenses 2,567,649.76 2,740,267.03
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Others 41,450,911.08 37,130,743.80
Total 629,200,722.73 610,138,439.92
Other descriptions:
38. Research and development expenses
In: RMB
Item Amount for the current period Amount for the prior period
Employee’s benefits and labor costs 78,237,277.89 128,112,151.81
Depreciation and amortization 12,030,086.93 21,407,106.17
Technical service fees 88,241,580.19 81,582,077.08
Others 5,876,003.71 8,197,996.80
Total 184,384,948.72 239,299,331.86
Other descriptions:
39. Financial expenses
In: RMB
Item Amount for the current period Amount for the prior period
Interest expenses 13,770,536.66 15,981,713.90
Less: Interest income 116,608,027.78 65,976,045.63
Finance discount 238,406.56
Service charge 16,999,003.73 13,022,001.64
Exchange profit or loss -542,960.12 395,763.36
Total -86,619,854.07 -36,576,566.73
Other descriptions:
40. Other income
In: RMB
Source of other income Amount for the current period Amount for the prior period
Government grants related to assets 20,304,477.81 12,748,320.76
Government grants related to income 29,158,039.45 44,851,235.43
Refund of service fees of withholding
6,044,849.19 1,123,274.02
personal income tax
Additional VAT deduction 97,244,205.84
Total 152,751,572.29 58,722,830.21
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2020 Annual Report of Mango Excellent Media Co., Ltd.
41. Investment income
In: RMB
Item Amount for the current period Amount for the prior period
Income from long-term equity investments
1,742,610.53 -5,105,446.79
under equity method
Income from disposal of long-term equity
70,437,276.18
investments
Income from investments in film and
4,706,280.41 4,227,644.04
television play without copyrights
Income from wealth management products 3,906,349.28 7,344,704.18
Total 80,792,516.40 6,466,901.43
Other descriptions:
42. Income from changes in fair values
In: RMB
Source of income from changes in fair
Amount for the current period Amount for the prior period
values
Other non-current financial
assets(Financial assets at fair value through -1,370,986.18
profit or loss)
Total -1,370,986.18
Other descriptions:
43. Impairment losses of credit
In: RMB
Item Amount for the current period Amount for the prior period
Bad debt losses of other receivables -1,273,395.96 31,334.30
Bad debt losses of accounts receivable -49,083,327.37 -50,020,218.33
Other current assets-losses of impairment
-2,230,274.05 -1,253,943.11
on issued loans
Total -52,586,997.38 -51,242,827.14
Other descriptions:
44. Impairment losses of assets
In: RMB
217
2020 Annual Report of Mango Excellent Media Co., Ltd.
Items Amount for the current period Amount for the prior period
I. Bad debt losses -21,417,042.28 1,371,927.60
II. Losses from decline in value of
inventories and impairment of contract -2,171,659.78 -1,996,052.09
performance costs
XII. Impairment losses of contractual
-13,213,182.37
assets
Total -36,801,884.43 -624,124.49
Other descriptions:
45. Income from disposal of assets
In: RMB
Source of income from disposal of assets Amount for the current period Amount for the prior period
Income from disposal of fixed assets 354,684.48 -168,797.67
46. Non-operating income
In: RMB
Amount included in the
Item Amount for the current period Amount for the prior period non-recurring profit or loss for
the current period
Payment unable to be made 3,249,641.40 3,249,641.40
Gains from damage and
51,169.81
retirement of non-current assets
Income from safeguarding legal
21,772,303.69 24,730,857.50 21,772,303.69
rights
Others 1,864,339.26 1,061,063.97 1,864,339.26
Total 26,886,284.35 25,843,091.28 26,886,284.35
Government grants included in profit and loss for the current period
In: RMB
Did the
grants affect Amount for Amount for
Special Related to
Project Issuer Reason Nature earnings or the current the current
grants? assets/income
losses for the period period
current year?
Other descriptions:
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47. Non-operating expenses
In: RMB
Amount included in the
Item Amount for the current period Amount for the prior period non-recurring profit or loss for
the current period
Losses from debt restructuring 2,576,237.35 1,004,295.80 2,576,237.35
Losses from damage and
736,201.04 135,510.79 736,201.04
retirement of non-current assets
Compensation expenditures 26,032,164.94 21,447,884.24 26,032,164.94
Losses from outbreak 15,627,676.21 15,627,676.21
Others 1,563,601.45 3,451,527.88 1,563,601.45
Total 46,535,880.99 26,039,218.71 46,535,880.99
Other descriptions:
48. Income tax expenses
(1) Table of income tax expenses
In: RMB
Item Amount for the current period Amount for the prior period
Current income tax expenses 7,411,218.58 16,092,665.26
Deferred income tax expenses 3,938,878.58
Total 7,411,218.58 20,031,543.84
(2) Reconciliation of income tax expenses to the accounting profit
In: RMB
Item Amount for the current period
Total profit 1,986,747,767.91
Income tax expense calculated based on statutory/applicable tax
496,686,941.98
rate
Effect of different tax rates of subsidiaries operating in other
-494,232,528.50
jurisdictions
Effect of adjustment on income tax for the period -1,708,718.01
Effect of non-taxable income -565,310.79
Effect of non-deductible cost, expense and loss 1,874,964.40
Effect of utilizing deductible loss not recognized for deferred tax -6,077,279.62
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2020 Annual Report of Mango Excellent Media Co., Ltd.
assets for prior period
Effect of deductible temporary difference or deductible loss not
12,236,955.68
recognized for deferred tax assets for the current period
Additional deduction of R&D expenses -803,806.56
Income tax expense 7,411,218.58
Other descriptions
49. Other comprehensive income
See the accompanying Note 31. Other comprehensive income.
50. Items in the cash flow statement
(1) Other cash receipts relating to operating activities
In: RMB
Item Amount for the current period Amount for the prior period
Other business income 14,754,286.58 192,630,932.33
Government grants 72,405,901.23 42,494,918.97
Interest income 116,608,027.78 65,976,045.63
Note deposits and legal affairs deposits 10,422,873.28
Income from safeguarding legal rights 21,772,303.69 24,730,857.50
Receivables and payables and others 28,128,702.93 35,197,705.87
Total 253,669,222.21 371,453,333.58
Descriptions of other cash receipts relating to operating activities:
(2) Other cash payments relating to operating activities
In: RMB
Items Amount for the current period Amount for the prior period
Payments of various expenses 1,721,402,373.87 1,806,621,786.03
Other business expenditures 6,645,651.51 82,336,163.55
Bank service fees 16,999,003.73 13,022,001.64
Others 42,190,406.87 40,067,901.04
Total 1,787,237,435.98 1,942,047,852.26
Descriptions of other cash payments relating to operating activities:
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(3) Other cash receipts relating to investing activities
In: RMB
Item Amount for the current period Amount for the prior period
Recovery of bank wealth management
622,500,000.00 840,100,000.00
products
Income from wealth management products 3,906,349.28 7,344,704.18
Income from investments in copyrights
945,045.86
where the investor have no copyrights
Received investments in film and
10,390,721.60
television plays
Total 626,406,349.28 858,780,471.64
Descriptions of other cash receipts relating to investing activities:
(4) Other cash payments relating to investing activities
In: RMB
Item Amount for the current period Amount for the prior period
Wealth management products 622,500,000.00 657,600,000.00
Total 622,500,000.00 657,600,000.00
Descriptions of other cash payments relating to investing activities:
(5) Other cash payments relating to financing activities
In: RMB
Item Amount for the current period Amount for the prior period
Supporting financing expenses and
657,257.37
expenditures
Total 657,257.37
Descriptions of other cash payments relating to financing activities:
51. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
In: RMB
Supplementary information Amount for the current period Amount for prior period
1. Reconciliation of net profit to cash flow
-- --
from operating activities:
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Net profit 1,979,336,549.33 1,157,502,515.46
Add: Provisions for impairment losses
89,388,881.81 51,866,951.63
of assets
Depreciation of fixed assets,
depletion of oil and gas assets, depreciation 44,829,216.08 60,969,750.12
of bearer biological assets
Depreciation of use right assets
Amortization of intangible assets 4,365,366,952.18 3,684,525,176.86
Amortization of long-term prepaid
25,691,871.99 25,123,027.11
expenses
Losses on disposal of fixed assets,
intangible assets and other long-term assets -354,684.48 168,797.67
(gains are indicated by “－")
Losses on retirement of fixed
736,201.04 84,340.98
assets (gains are indicated by "－")
Losses on changes in fair values
1,370,986.18
(gains are indicated by "－")
Financial expenses (gains are
13,546,992.93 16,377,477.26
indicated by "－")
Investment losses (gains are
-80,792,516.40 -6,466,901.43
indicated by "－")
Decrease in deferred tax assets
3,938,878.58
(increase is indicated by "－")
Increase in deferred tax liabilities
(decrease is indicated by "－")
Decrease in inventories (increase is
253,879,071.02 296,441,004.11
indicated by "－")
Decrease in receivables from
operating activities (increase is indicated by -1,256,748,283.48 -1,048,364,434.32
"－")
Increase in payables from
operating activities (decrease is indicated by 500,793,311.24 1,692,076,134.46
"－")
Others -5,354,703,210.18 -5,642,746,993.49
Net cash flow from operating
580,970,353.08 292,866,711.18
activities
2. Significant investing and financing
activities that do not involve cash receipts -- --
and payments:
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Conversion of debts into capital
Convertible corporate bonds due within
one years
Fixed assets leased in under financing
leases
3. Net changes in cash and cash equivalents: -- --
Closing balance of cash 5,314,463,484.01 5,041,075,499.16
Less: Opening balance of cash 5,041,075,499.16 2,514,587,154.25
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
273,387,984.85 2,526,488,344.91
equivalents
(2) Composition of cash and cash equivalents
In: RMB
Item Closing balance Opening balance
I. Cash 5,314,463,484.01 5,041,075,499.16
Including: Cash on hand 86,976.40 104,219.13
Bank deposit that can be paid at any
5,296,358,510.78 5,003,669,597.21
time
Other monetary funds that can be
18,017,996.83 37,301,682.82
paid at any time
III. Closing balance of cash and cash
5,314,463,484.01 5,041,075,499.16
equivalents
Other descriptions:
52. Assets with restrictions in ownership or use right
In: RMB
Gross carrying amount at the end of the
Items Reason for restriction
period
Frozen amounts due to litigation, POS
Cash and bank balances 21,856,302.69 deposits and third-party platform account
deposits
Total 21,856,302.69 --
Other descriptions:
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53. Foreign currency item
(1) Foreign currency item
In: RMB
Closing balance of foreign Translated balance in RMB at
Item Exchange Rate
currency the end of the period
Cash and bank balances -- -- 4,057,722.10
Including: USD 621,882.65 6.5249 4,057,722.10
EUR
HKD
Accounts receivable -- -- 251,861.14
Including: USD 38,600.00 6.5249 251,861.14
EUR
HKD
Long-term borrowings -- --
Including: USD
EUR
HKD
Other descriptions:
(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
54. Government grants
(1) Basic information of government grants
In: RMB
Amount included in profit or
Category Amount Line item
loss for the current period
Happigo Supply Chain Urban
100,000.00 Other income 100,000.00
Co-Distribution System Project
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Special funds for the
development of the modern 40,229.22 Other income 40,229.22
logistics
The second batch of special
guidance funds of Hunan
Province to cultivate and 199,999.96 Other income 199,999.96
develop strategic emerging
industries
Special funds for "Cloud
1,380,000.00 Other income 1,380,000.00
Multi-screen" service platform
The second batch of special
funds for modern services
60,000.00 Other income 60,000.00
development - Mango TV
mobile client
Mobile internet industry
2,064,638.24 Other income 2,064,638.24
development special fund
Special funds for the
development of the cultural 8,456,954.89 Other income 8,456,954.89
industry
Guidance funds for
provincial-level cultural 399,999.96 Other income 399,999.96
industry development
Special funds for the
development of modern 60,000.00 Other income 60,000.00
services
Special funds for Mongo TV
6,000,000.00 Other income 6,000,000.00
Cloud Platform (ERU) project
Silk Road Film and Television
Bridge Project of the State
566,037.74 Other income 566,037.74
Administration of Radio, Film
and Television
Network audio-visual program
quality creation and distribution 72,000.00 Other income 72,000.00
project
2020 “Youth Mango Festival”
666,666.67 Other income 666,666.67
Project
Others 237,951.13 Other income 237,951.13
Key project of "going global"
by the State Administration of 622,641.51 Other income 622,641.51
Radio, Film and Television
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Guidance fund subsidies for
cultural business of Hunan 284,000.00 Other income 284,000.00
Province
Central cultural industry
5,000,000.00 Other income 5,000,000.00
development special funds
Malanshan cultural and creative
333,333.33 Other income 333,333.33
subsidy
Intellectual property subsidy
172,268.06 Other income 172,268.06
funds
R&D awards for enterprises,
universities and research 4,079,000.00 Other income 4,079,000.00
institutes
Special fund award for movie
and television culture 2,942,576.00 Other income 2,942,576.00
development
Enterprise development award
on “case-by-case” basis for
2,337,000.00 Other income 2,337,000.00
“four types of large-scale
enterprises”
Activity bonus for Malanshan
Cup international algorithm 1,990,000.00 Other income 1,990,000.00
competition
Subsidy for job stabilization 1,916,448.22 Other income 1,916,448.22
The “five one” project award
for the City of the Family by the
900,000.00 Other income 900,000.00
Publicity Department of the
CPC
Subsidy funds for modern
service enterprises newly 698,100.00 Other income 698,100.00
introduced in Xiaoshan District
Financial support for
development of e-commerce 660,000.00 Other income 660,000.00
industry
Financial support funds 576,000.00 Other income 576,000.00
Special fund for risk
compensation to micro-loan 570,000.00 Other income 570,000.00
companies
Awards for key cultural export
500,000.00 Other income 500,000.00
enterprises and projects
New media conference project 500,000.00 Other income 500,000.00
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2020 Annual Report of Mango Excellent Media Co., Ltd.
support fund
The sixth quality bonus by
500,000.00 Other income 500,000.00
Hunan Provincial Governor
The fifth network original audio
visual program competition 396,226.42 Other income 396,226.42
award
Bonus for top 100 internet
370,000.00 Other income 370,000.00
companies in China
Housing subsidy during the
355,748.54 Other income 355,748.54
outbreak of COVID-19
Special fund for cultural
300,000.00 Other income 300,000.00
industry development
Subsidy for development of
boutique member system in 250,000.00 Other income 250,000.00
Mango automobile mall
Incentive funds for leading
200,000.00 Other income 200,000.00
e-commerce enterprises
Intellectual Property Protection
200,000.00 Other income 200,000.00
Award
Awards for assessment on
leading enterprises in modern 200,000.00 Other income 200,000.00
service industry
Subsidy funds for cultural
enterprises to deal with the 200,000.00 Other income 200,000.00
outbreak
Others 2,104,697.37 Other income 2,104,697.37
Loan interest subsidy related to
Malanshan Cultural and 238,406.56 Financial expense 238,406.56
Creative Park
Be Steeled in Repeated
11,037,735.85 Inventory offset
Struggles
A LAND SO RICH IN
9,000,000.00 Inventory offset
BUAUTY
VIII. CHANGES IN SCOPE OF CONSOLIDATION
1. Changes in scope of consolidation due to other reasons
Descriptions of changes in scope of consolidation caused by other reasons (such as establishment of a new subsidiary and liquidation
of a subsidiary, etc.) and their relevant information:
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2020 Annual Report of Mango Excellent Media Co., Ltd.
1. Increase in the scope of combination
In: RMB0’000
Company name Method of obtaining Timepoint of obtaining Capital Proportion of contribution
equity equity contribution
Happy Sunshine
Hongmang
Education Establishment June 16, 2020 1,000.00 100.00%
Technology Co.,
Ltd.
Xiaomang
Electronic
Establishment September 11, 2020 5,000.00 100.00%
Commerce Co.,
Ltd.
2. Decrease in the scope of combination
In: RMB
Company name Method of Timepoint of disposing Net profit from the beginning of the period to the
disposing equity equity date of disposal
Doug (Shanghai) Deregistration June 16, 2020 21,727.98
Investment
Management
Limited Liability
Company
Ningbo Free Trade Deregistration March 25, 2020 -1,974,065.52
Zone Happigo
International Trade
Co., Ltd.
Damei Fashion Deregistration July 23, 2020 -316,944.01
(Shanghai) Culture
Media Co., Ltd.
IX. INTERESTS IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of enterprise group
Name of Main business Registered Shareholding percentage Method of
Business nature
subsidiary place address Direct Indirect acquisition
Shanghai
Happigo
Enterprise Shanghai Shanghai Commerce 100.00% Establishment
Development Co.,
Ltd.
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Shanghai Establishment
Happivision
Advertising Shanghai Shanghai Commerce 100.00%
Communication
Co., Ltd.
Happigo (Beijing) Establishment
New Media Tech Beijing Beijing Commerce 100.00%
nology Co., Ltd.
Doug Cloud Establishment
Business (Hunan)
Trade Limited Changsha Changsha Commerce 100.00%
Liability
Company
Mango Life Establishment
(Hunan)
E-commerce Changsha Changsha Commerce 100.00%
Limited Liability
Company
Business
Happigo (Hunan) combination not
Supply Chain Changsha Changsha Storage 100.00% involving
Management Co., enterprises under
Ltd. common control
Shanghai Meimi Establishment
Shanghai Shanghai Commerce 100.00%
Trade Co., Ltd.
Dameiren Global Establishment
Trading Co., Shanghai Hong Kong Commerce 100.00%
Limited
Hunan Mango Establishment
Auto Automobile Changsha Changsha Commerce 51.00%
Sales Co., Ltd.
Happigo Co., Ltd. Changsha Changsha Commerce 100.00% Establishment
Hunan Happy Establishment
Money
Changsha Changsha Finance 100.00%
Microfinance Co.,
Ltd.
Hunan Happy Business
Sunshine combination
Interactive Changsha Changsha Video 100.00% involving
Entertainment enterprises under
Media Co., Ltd. common control
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Business
combination
Film &
Hunan Mango Changsha Changsha 100.00% involving
Television
Entertainment enterprises under
Co., Ltd common control
Business
combination
Film &
Changsha Changsha 100.00% involving
Television
Mango Studios enterprises under
Co., Ltd. common control
Business
Shanghai combination
Mangofun Shanghai Shanghai Game 100.00% involving
Technology Co., enterprises under
Ltd. common control
Business
combination
Film &
Shanghai Shanghai Shanghai 100.00% involving
Television
EE-Media Co., enterprises under
Ltd. common control
Zhejiang Film & Business
Dongyang Tianyu Television combination
Film and Zhejiang Zhejiang 100.00% involving
Television enterprises under
Culture Co. Ltd. common control
Hunan Tianyu Film & Business
Film and Television combination
Television Changsha Changsha 100.00% involving
Production Co. enterprises under
Ltd. common control
Business
combination
Beijing Super Beijing Beijing Music 100.00% involving
Vocal Culture Co. enterprises under
Ltd. common control
Business
combination
Beijing Happy Beijing Beijing Culture media 100.00% involving
Mango Culture enterprises under
Media Co., Ltd. common control
Horgos Happy Horgos Horgos Business
Culture media 100.00%
Sunshine Media combination
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Co., Ltd. involving
enterprises under
common control
Business
Hunan Happy combination
Mangofun Changsha Changsha Game 100.00% involving
Technology Co., enterprises under
Ltd. common control
Hangzhou Hemei
Interactive
Entertainment Hangzhou Hangzhou Commerce 54.00% Establishment
Technology Co.,
Ltd.
Hunan Happy
Star Light
Interactive Haikou Haikou Commerce 100.00% Establishment
Entertainment
Media Co., Ltd.
Happy Sunshine
Hongmang
Education Changsha Changsha Commerce 100.00% Establishment
Technology Co.,
Ltd.
Xiaomang
Electronic
Changsha Changsha Commerce 100.00% Establishment
Commerce Co.,
Ltd.
Mgtv.com (Hong
Kong) Media Hong Kong Hong Kong Commerce 100.00% Establishment
Company Limited
Descriptions of the difference between the shareholding percentage 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 descriptions:
(2) Significant non-wholly subsidiaries
In: RMB
Shareholding percentage Profit or loss attributable Dividends declared for Closing balance of
Name of subsidiary
by minority shareholders to minority interests for distribution to minority minority interests
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2020 Annual Report of Mango Excellent Media Co., Ltd.
the current period shareholders for the
current period
Hunan Mango Auto
Automobile Sales Co., 49.00% 501,154.15 30,315,205.14
Ltd.
Descriptions of the difference between the shareholding percentage of minority shareholders and their proportion of voting rights in a
subsidiary:
Other descriptions:
(3) Key financial information of significant non-wholly subsidiaries
In: RMB
Closing balance Opening balance
Name of Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
subsidiary ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Hunan
Mango
Auto 95,213,4 13,358,8 108,572, 46,704,5 46,704,5 48,911,5 17,876,0 66,787,5 5,942,56 5,942,56
Automobil 39.53 62.09 301.62 36.01 36.01 15.19 51.30 66.49 4.46 4.46
e Sales
Co., Ltd.
In: RMB
Amount for the current period Amount for the prior period
Cash flows Cash flows
Name of Total Total
Operating from Operating from
subsidiary Net profit comprehensi Net profit comprehensi
income operating income operating
ve income ve income
activities activities
Hunan Mango
Auto 735,524,869. -39,939,680.6 318,492,977. -13,467,087.6
1,022,763.58 1,022,763.58 -918,080.86 -918,080.86
Automobile 05 0 00 8
Sales Co., Ltd.
Other descriptions:
2. Interests in joint ventures or associates
(1) Summary of financial information of insignificant joint ventures and associates
In: RMB
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Closing balance / Amount for the current Opening balance / Amount for the prior
period period
Joint ventures -- --
Total of the following items calculated based
-- --
on the shareholding percentage
Associates: -- --
Total carrying amount of investment 22,882,969.51 210,436,179.18
Total of the following items calculated based
-- --
on the shareholding percentage
--Net profit 1,742,610.53 -5,105,446.79
--Other comprehensive income 1,742,610.53 -5,105,446.79
--Total comprehensive income 1,742,610.53 -5,105,446.79
Other descriptions
Note: In this period, the Company transferred 40% of the equity in Malanshan Culture Creative Investment Co.,
Ltd. to Mango Media Co., Ltd. at a price of RMB259.6792 million.
(2) Excessive loss of joint venture or associates
In: RMB
Loss not recognized in the
Name of associates or joint Accumulated loss not Closing accumulated loss not
current period (net profit shared
ventures recognized in the prior period recognized in the current period
in the current period)
Tianjin Sunshine Meichuang
-2,164,726.96 -98,191.97 -2,262,918.93
Technology Co., Ltd.
Other descriptions:
X. RISKS RELATED TO 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
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2020 Annual Report of Mango Excellent Media Co., Ltd.
(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 includes, 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 VII(I)3, 6 and 8 of 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 funds 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
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 collaterals are required since the Company only deals with third parties that are approved and creditworthy. The
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2020 Annual Report of Mango Excellent Media Co., Ltd.
concentrated credit risks are managed by customers. As of December 31, 2020, the Company is exposed to certain concentration of
credit risks, as the Company’s accounts receivable from top 5 customers have accounted for 34.43% of the total balance of accounts
receivable (December 31, 2019: 33.31%). The Company held no collaterals or other credit ranking measures for the balance of
accounts receivable.
The maximum exposure to the Company is the carrying amount 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
Item Closing balance
Carrying amount Undiscounted contract Within 1 year 1-3 years Over 3
amount years
Short-term 39,789,110.68 41,159,399.06 41,159,399.06
borrowings
Notes payable 712,292,035.75 712,292,035.75 712,292,035.75
Accounts 5,217,087,330.62 5,217,087,330.62 5,217,087,330.62
payable
Other payables 160,651,194.91 160,651,194.91 160,651,194.91
Sub-total 6,129,819,671.96 6,131,189,960.34 6,131,189,960.34
(Continued to above table)
Item Balance at the end of last year
Carrying amount Undiscounted contract Within 1 year 1-3 years Over 3
amount years
Short-term 349,816,947.83 357,795,920.01 357,795,920.01
borrowings
Notes payable 325,880,463.11 325,880,463.11 325,880,463.11
Accounts payable 5,048,443,928.94 5,048,443,928.94 5,048,443,928.94
Other payables 202,952,467.24 202,952,467.24 202,952,467.24
Sub-total 5,927,093,807.12 5,935,072,779.30 5,935,072,779.30
(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
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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. The Company's exposure to the currency risk is primarily associated with the Company’s monetary assets
and liabilities dominated in foreign currencies. If the monetary assets and liabilities dominated in foreign currencies are imbalanced
in a short time, the Company will purchase and sell foreign currencies at the market exchange rate to keep the net risk exposure
acceptable. Since the Company mainly operates in Mainland China with its principal activities denominated in RMB, the Company's
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
VII53. Foreign currency item of the financial statements hereof for details.
XI. 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
Items
Level 1 Level 2 Level 3 Total
I. Continuous fair value
-- -- -- --
measurement
Receivables financing 164,410,000.00 164,410,000.00
Total assets continuously
164,410,000.00 164,410,000.00
measured at 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 3 fair value measurement items
The Company’s receivables financing refers to the bank acceptances accepted by commercial banks with
higher credit rating, without quotation in the active market. The cost thereof represents the best estimate of fair
value.
XII. 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 (%)
Mango Media Co., Planning, production
PRC 2,050,000,000.00 58.94% 58.94%
Ltd. and operation of
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2020 Annual Report of Mango Excellent Media Co., Ltd.
radio and television
programs; asset
management and
investment subject to
laws and regulations;
advertising planning,
production and
operation;
Descriptions of the Company’s parent company
Mango Media Co., Ltd., which holds 58.94% 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
District, Changsha City. Hunan Broadcasting System 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 controlling party of the Company is Hunan Broadcasting System .
Other descriptions:
2. Subsidiaries of the Company
For details of the subsidiaries of the Company, see Note IX. Interests in Other Entities.
3. Associates and joint ventures of the Company
For details of the significant joint ventures or associates of the Company, see the accompanying notes.
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 Mama Mia Mutual Entertainment Network Technology
Associates
Co., Ltd.
Tianjin Sunshine Meichuang Technology Co., Ltd. Associates
Other descriptions
4. Other related parties of the Company
Name of other related parties Relationship between other related parties and the Company
Hunan Radio and Television Advertising Corporation Controlled by the same de facto controller
Hunan Broadcasting System Satellite TV Channel Controlled by the same de facto controller
Hunan Golden Eagle Animation Media Co., Ltd. (former name: Controlled by the same de facto controller
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Hunan Golden Eagle Cartoon Co., Ltd.)
Hunan EE Advertising Co., Ltd. Controlled by the same de facto controller
Yunhong Communication Technology (Guangzhou) Co., Ltd.
[Note 1] Controlled by the same de facto controller
Hunan Radio, Film and Television Group Co., Ltd. Controlled by the same de facto controller
Subsidiaries of Hunan Broadcasting System [Note 2] Controlled by the same de facto controller
Subsidiaries of Hunan TV & Broadcast Intermediary Co., Ltd.
[Note 3] Controlled by the same de facto controller
Subsidiaries of Mango Media Co., Ltd. [Note 4] Controlled by the same de facto controller
Hunan Fukun Culture Media Investment Center (LP) Joint-stock company of Mango Media
MIGU Culture Technology Co., Ltd. [Note 5] Company materially affected by the key officers
Other descriptions
[Note 1] Yunhong Communication Technology (Guangzhou) Co., Ltd. Comprises Beijing Yunhong Wanhao Advertising Co.,
Ltd. and Shanghai Yunhong Advertising Co., Ltd..
[Note 2] The subsidiaries of Hunan Broadcasting System comprise Beijing Happywoods Culture Communication Co., Ltd.,
Hunan Innovation Entertainment Media Co., Ltd., Hunan TV Drama Media Co., Ltd. 、Hunan Broadcasting and Television Logistics
Management Service Co., Ltd., Hunan Broadcasting System Channel (excluding Satellite TV Channel), Hunan Broadcasting System
Broadcast Media Center, Hunan Broadcasting System Logistics Support Center, Hunan Broadcasting System International Media
Co., Ltd., Hunan International Convention and Exhibition Center, Hunan Happy Avant Garde Media Co., Ltd. and Letian
Entertainment (Hunan) Co., Ltd..
[Note 3] The subsidiaries of Hunan TV & Broadcast Intermediary Co., Ltd. comprise TIK Films, Hunan Jinyingcheng Real
Estate Co., Ltd., Hunan CATV Network Group Co., Ltd., Hunan Saint Tropez Investment Co., Ltd., Shenzhen 9zhitx Technology
Co., Ltd. and Changsha Colorful World Co., Ltd..
[Note 4] The subsidiaries of Mango Media Co., Ltd. comprise Beijing Jinshiyatang Film & Television Culture Communication
Co., Ltd. and Hunan Mango Vision Technology Co., Ltd..
[Note 5] MIGU Culture Technology Co., Ltd. comprises MIGU Video Technology Co., Ltd., MIGU Cartoon 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, rendering and receipt of services
Table of purchase of goods/ receipt of services
In: RMB
If exceeding the
Details of related Amount for the Transaction quota Amount for the prior
Related parties approved transaction
party transactions current period approved period
amount
Yunhong
Communication Advertising
210,676,667.48 260,500,000.00 No 209,215,545.43
Technology agency
(Guangzhou) Co.,
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Ltd.
Hunan Radio and
Advertising,
Television
publicity and 40,592,476.33 42,800,000.00 No 1,456,603.77
Advertising
promotion
Corporation
Value added share
Hunan Broadcasting of operators, brand
11,407,659.58 12,120,000.00 No 474,672,200.51
System license and
program usage fee
Publicity and
promotion, artist
Subsidiaries of
agency, program
Hunan Broadcasting 33,420,832.91 29,340,000.00 Yes 41,707,546.09
production, venue
System
exhibition and
supporting services
Publicity and
Hunan Broadcasting
promotion, artist
System Satellite TV 36,848,537.20 43,450,000.00 No 36,560,704.01
agency, accepting
Channel
services
Hunan Golden Artist agency,
Eagle Animation publicity and 10,642,027.79 20,000,000.00 No 7,783,371.36
Media Co., Ltd. promotion
Advertising
Mango Media Co.,
agency and 183,877,073.47 71,090,000.00 Yes 70,252,090.47
Ltd.
purchase of goods
Meichuang
Technology Co., Purchase of goods 4,000,000.00 No 3,423,354.19
Ltd.
Shanghai Mama
Mia Mutual
Entertainment
Purchase of goods 949,171.49 3,950,000.00 No 1,741,999.26
Network
Technology Co.,
Ltd.
Purchase of
MIGU Culture
bandwidth,
Technology Co., 62,298,481.29 70,120,000.00 No 16,540,342.07
copyrights and
Ltd.
goods
Hunan Radio, Film Purchase of
and Television copyrights, 662,114,253.82 628,550,000.00 Yes
Group Co., Ltd. operator sharing,
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2020 Annual Report of Mango Excellent Media Co., Ltd.
publicity and
promotion
Subsidiaries of Operator sharing,
Hunan TV & board and lodging
Broadcast expenses, purchase 20,277,039.13 3,800,000.00 Yes 3,611,104.17
Intermediary Co., of goods and site
Ltd. expenses
Subsidiaries of
Mango Media Co., Technical cost 188,679.25 8,000,000.00 No
Ltd.
Table of sales of goods/ rendering of services
In: RMB
Details of related party
Related parties Amount for the current period Amount for the prior period
transactions
Yunhong Communication
Technology (Guangzhou) Co., Advertising 771,483,736.91 741,360,400.00
Ltd.
Hunan Radio, Film and Advertising and release
801,900,648.11 2,358,490.57
Television Group Co., Ltd. income
Hunan Radio and Television
HS interaction and advertising 19,735,849.06
Advertising Corporation
Advertising and release
Hunan Broadcasting System 354,592.45 981,143,773.58
income
Hunan Broadcasting System Release income and rendering
418,531,355.04 379,794,709.37
Satellite TV Channel of services
Subsidiaries of Hunan
Advertising and artist income 40,437,722.81 135,295.21
Broadcasting System
Hunan Golden Eagle Animation
Artist income 867,924.52 3,594,301.88
Media Co., Ltd.
Mango Media Co., Ltd. Advertising 556,465,901.91 344,703,783.89
Mango Media Co., Ltd. Release income 445,650,943.20 578,254,700.00
Shanghai Mama Mia Mutual
Entertainment Network Sales of goods 308,159.28 566,194.21
Technology Co., Ltd.
Subsidiaries of Hunan TV &
Broadcast Intermediary Co., Operator income 2,514,681.44 5,471,698.11
Ltd.
MIGU Culture Technology Co., Operator income and 826,176,362.97 510,790,103.89
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Ltd. advertising
Descriptions of related party transactions with respect to the sales and purchase of goods, rendering and receipt of services
(2) Related leases
The Company as the lessor
In: RMB
Lease income recognized in the Lease income recognized in the
Name of lessee Category of leased assets
current period prior period
Subsidiaries of Mango Media Leasing and property
2,005,015.86
Co., Ltd. management
Subsidiaries of Hunan Leasing and property
5,229,537.88 5,462,134.32
Broadcasting System management
Hunan Golden Eagle Animation Leasing and property
1,019,573.80
Media Co., Ltd. management
The Company as the lessee:
In: RMB
Lease fees recognized in the Lease fees recognized in the
Name of lessor Category of leased assets
current period prior period
Subsidiaries of Hunan Leasing and property
23,335,476.32 14,657,277.07
Broadcasting System management
Hunan TV & Broadcast
Leasing and property
Subsidiaries of Intermediary 13,260,280.74 10,913,921.27
management
Co., Ltd.
Subsidiaries of Mango Media
Automobile rental 188,586.82 392,000.00
Co., Ltd.
Descriptions of leases with related parties
(3) Compensation for key management
In: RMB
Item Amount for the current period Amount for the prior period
Compensation for key management
37,175,900.00 27,328,700.00
personnel
(4) Other related party transactions
The 40% equity of Malanshan Cultural and Creative Investment Co., Ltd. held by the Company was
transferred to Mango Media Co., Ltd. in consideration of RMB259.6792 million, the industrial and commercial
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2020 Annual Report of Mango Excellent Media Co., Ltd.
change registration procedures for which were completed on April 16, 2020.
6. Receivables from and payables to related parties
(1) Accounts receivable
In: RMB
Closing balance Opening balance
Item Related parties Gross carrying Provisions for bad Gross carrying Provisions for bad
amount debts amount debts
Receivable financing
Hunan Broadcasting
Receivable financing System Satellite TV 57,000,000.00
Channel
MIGU Culture
Receivable financing 107,410,000.00
Technology Co., Ltd.
Hunan Broadcasting
Notes receivable System Satellite TV 95,456,357.50
Channel
Hunan Radio and
Television
Accounts receivable 3,420,000.00
Advertising
Corporation
Hunan Broadcasting
Accounts receivable 244,000.00 127,438,327.00
System
Hunan Broadcasting
Accounts receivable System Satellite TV 214,923,447.92 146,560,000.00
Channel
Hunan Radio, Film
Accounts receivable and Television 164,336,587.00 2,500,000.00 25,000.00
Group Co., Ltd.
Hunan EE
Accounts receivable 290,175,195.53 41,294,538.32
Advertising Co., Ltd.
Mango Media Co.,
Accounts receivable 122,610,000.00 20,500,000.00
Ltd.
Meichuang
Accounts receivable 766,557.10 766,557.10 766,557.10 71,405.67
Technology Co., Ltd.
Yunhong
Accounts receivable Communication 72,753,709.93 47,659,781.04 2,382,989.05
Technology
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2020 Annual Report of Mango Excellent Media Co., Ltd.
(Guangzhou) Co.,
Ltd.
MIGU Culture
Accounts receivable 61,576,467.21 3,078,823.36 101,563,719.81 5,078,185.99
Technology Co., Ltd.
Subsidiaries of
Hunan TV &
Accounts receivable Broadcast 2,876,840.38
Intermediary Co.,
Ltd.
Subsidiaries of
Accounts receivable Hunan Broadcasting 3,490,039.09 1,090,000.00
System
Subsidiaries of
Hunan TV &
Contract asset Broadcast 2,449,700.00 8,800,000.00 590,000.00
Intermediary Co.,
Ltd.
MIGU Culture
Contract asset 462,914,088.43 23,145,704.42 252,143,480.97 12,607,174.06
Technology Co., Ltd.
Yunhong
Communication
Prepayments Technology 164,717.00
(Guangzhou) Co.,
Ltd.
Hunan Radio and
Television
Prepayments 111,344.33
Advertising
Corporation
Hunan EE
Prepayments 257,835.67
Advertising Co., Ltd.
Subsidiaries of
Hunan TV &
Prepayments Broadcast 64,443.96 40,820.20
Intermediary Co.,
Ltd.
Subsidiaries of
Prepayments Hunan Broadcasting 397,107.70 236,399.19
System
Meichuang
Prepayments 6,014,723.96 6,014,723.96 6,014,723.96 428,072.40
Technology Co., Ltd.
Prepayments Hunan Golden Eagle 304,789.54 824,175.81
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Animation Media
Co., Ltd.
Subsidiaries of
Other receivables Hunan Broadcasting 1,000,105.00 500,105.00
System
Subsidiaries of
Hunan TV &
Other receivables Broadcast 1,119,357.00 1,161,620.80
Intermediary Co.,
Ltd.
Shanghai Mama Mia
Mutual
Other receivables Entertainment 2,629,764.69 1,564,882.35 3,000,000.00 1,000,000.00
Network Technology
Co., Ltd.
Hunan Radio, Film
Other receivables and Television 300,000.00
Group Co., Ltd.
Subsidiaries of
Other receivables Mango Media Co., 241,069.50
Ltd.
Subsidiaries of
Hunan TV &
Other current assets Broadcast 1,531,056.96 1,940,764.58
Intermediary Co.,
Ltd.
(2) Accounts payable
In: RMB
Gross carrying amount at the Gross carrying amount at the
Item Related parties
end of the period beginning of the period
Yunhong Communication
Accounts payable Technology (Guangzhou) Co., 199,545,392.54 152,095,293.45
Ltd.
Accounts payable Hunan Broadcasting System 20,281,809.33 157,092,020.64
Hunan Broadcasting System
Accounts payable 3,380,943.40 4,622,628.53
Satellite TV Channel
Hunan Radio and Television
Accounts payable 11,320,754.73
Advertising Corporation
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Hunan Radio, Film and
Accounts payable 37,086,109.61
Television Group Co., Ltd.
Accounts payable Hunan EE Advertising Co., Ltd. 176,823,442.87 41,762,467.87
Shanghai Mama Mia Mutual
Accounts payable Entertainment Network 134,309.23 185,956.40
Technology Co., Ltd.
Hunan Fukun Culture Media
Accounts payable 179,055.14
Investment Center (LP)
Meichuang Technology Co.,
Accounts payable 25,350.00 25,350.00
Ltd.
MIGU Culture Technology Co.,
Accounts payable 35,517,829.89 17,963,977.49
Ltd.
Subsidiaries of Hunan TV &
Accounts payable Broadcast Intermediary Co., 17,725,248.79 404,627.42
Ltd.
Subsidiaries of Hunan
Accounts payable 1,845,211.14 11,813,636.47
Broadcasting System
Subsidiaries of Mango Media
Accounts payable 132,075.48
Co., Ltd.
Yunhong Communication
Contract liabilities Technology (Guangzhou) Co., 855,240.83 110,717.09
Ltd.
Contract liabilities Hunan Broadcasting System 1,886,792.45 1,698,142.45
Hunan Broadcasting System
Contract liabilities 117,594,339.62 42,924.53
Satellite TV Channel
Contract liabilities Hunan EE Advertising Co., Ltd. 1,725,283.01 247,660.23
MIGU Culture Technology Co.,
Contract liabilities 22,022.40 1,962,264.10
Ltd.
Subsidiaries of Hunan
Contract liabilities 349,943.95 331,222.25
Broadcasting System
Subsidiaries of Hunan TV &
Contract liabilities Broadcast Intermediary Co., 1,573,712.60 377,358.49
Ltd.
Other payables Hunan EE Advertising Co., Ltd. 250,000.00
Hunan TV & Broadcast
Other payables Subsidiaries of Intermediary 1,596,991.85 559,752.67
Co., Ltd.
Other payables Hunan Broadcasting System 104,245.28
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Other payables Mango Media Co., Ltd. 3,784,547.60 3,796,820.30
Shanghai Mama Mia Mutual
Other payables Entertainment Network 207,397.81
Technology Co., Ltd.
Subsidiaries of Hunan
Other payables 5,788,122.23 2,114,564.76
Broadcasting System
Subsidiaries of Hunan TV &
Other current liabilities Broadcast Intermediary Co., 1,273,669.54
Ltd.
XIII. COMMITMENTS AND CONTINGENCIES
1. Significant commitment
Significant commitments as of the balance sheet date
As of the balance sheet date, the Company and its subsidiaries have had the following commitments in respect of
non-cancellable operating leases:
In: RMB0’000
1. Operating lease commitment
Minimum lease payments under non-cancellable Closing balance Opening balance
operating leases:
1st year subsequent to the balance sheet date 6,059.73 4,804.20
2nd year subsequent to the balance sheet date 4,918.39 3,655.84
3rd year subsequent to the balance sheet date 3,474.67 2,562.88
Subsequent periods 11,111.92 8,597.38
Total 25,564.71 19,620.30
Operating lease expenses are the expenses spent by the Company and its subsidiaries to rent office, program production space
and storage facilities.
2. Commitment to payments for internet access cooperation
Payments for internet access cooperation Closing balance Opening balance
1st year subsequent to the balance sheet date 3,198.95 6,710.50
2nd year subsequent to the balance sheet date 4.86 410.40
3rd year subsequent to the balance sheet date 410.00
Subsequent periods 3,203.81 7,530.90
Payments for internet access cooperation are charges for use that should be paid by the Company in each relevant agreement
period subject to agreements concluded by the Company and each local TV station with cooperation.
3. Copyright purchase commitment
Copyright purchase agreements Closing balance Opening balance
1st year subsequent to the balance sheet date 54,571.00 54,571.00
2nd year subsequent to the balance sheet date 54,571.00
3rd year subsequent to the balance sheet date 54,571.00
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Subsequent periods 109,142.00
Total 272,855.00 54,571.00
Copyright purchase agreements are concluded by and between Happy Sunshine and Golden Eagle Broadcasting System Co., Ltd.
for considerations that should be paid by the Company to purchase copyrights in each relevant agreement period.
2. Contingencies
Significant contingencies as of the balance sheet date
1. In July 2019, Jiangsu Baozi Film and Television Media Co., Ltd. (“Jiangsu Baozi”) filed a lawsuit against
Happy Sunshine, Zhejiang Hengrui Film and Television Media Co., Ltd. and the Company, requesting to order: to
confirm Happy Sunshine and Zhejiang Hengrui infringe upon Jiangsu Baozi’s rights to publish, release and
communicate through information network the film i.e. HE Likes Me First; a statement of apology to be published
for three consecutive days; Happy Sunshine and Zhejiang Hengrui to compensate Jiangsu Baozi for the economic
loss of RMB5.2926 million, and the Company to be jointly and severally liable therefor to the extent payable by
Happy Sunshine.
The first instance judgment of the case was made by Changsha Municipal Intermediate People’s Court,
whereby it is adjudicated that Happy Sunshine shall compensate Jiangsu Baozi for the economic loss of
RMB450,000, and Zhejiang Hengrui shall bear joint and several liability for RMB400,000 of the said
compensation. The Company has appealed to Hunan Provincial Higher People’s Court against Jiangsu Baozi
requesting to dismiss the latter’s claim. At present, the second instance proceedings are pending. It is expected
that the case will not have a material adverse effect on the financial situation of the Company.
2. In August 2019, Lead Capital Management Co., Ltd. (“Lead Capital”) filed a lawsuit against Happy
Sunshine with Changsha Municipal Intermediate People’s Court, requesting to order Happy Sunshine to make the
relevant payments together with the liquidated damages in the amount of about RMB20.4611 million on behalf of
Beijing Guolong Film Investment Co., Ltd. (“Guolong”) to Lead Capital, and meanwhile applying to the court for
property preservation, as a result of which a sum of RMB21 million in Happy Sunshine’s account opened with the
Business Department of China Zheshang Bank Changsha Branch was frozen.
At present, the second instance of the case is pending before Hunan Provincial Higher People’s Court who
has ruled to suspend the trial. The key to the case lies in the outcome of a separate case filed by Happy Sunshine
concerning termination of contract with Guolong. If the contract is held to be terminated, Happy Sunshine will not
be required to pay the subsequent copyright licensing fee, and accordingly will have no need to pay to Lead
Capital on behalf of Guolong.
3. In September 2020, Century Great Dragon Film & TV Co., Ltd. (“Century Great Dragon”) filed a lawsuit
against Happy Sunshine with Changsha Municipal Intermediate People’s Court, requesting to order Happy
Sunshine to make on behalf of Guolong the relevant payments together with the liquidated damages in the amount
of about RMB29.0624 million to Century Great Dragon.
At present, the first instance of the case is pending before Changsha Municipal Intermediate People’s Court
who has ruled to suspend the trial. The key to the case lies in the outcome of a separate case filed by Happy
Sunshine concerning termination of contract with Guolong. If the contract is held to be terminated, Happy
Sunshine will not be required to pay the subsequent copyright licensing fee, and accordingly will have no need to
pay to Lead Capital on behalf of Guolong.
4. Chongqing Daisheng Cultural Entertainment Media Co., Ltd. (“Chongqing Daisheng”) filed a lawsuit
against Happy Sunshine and Entertainment Channel of Hunan Broadcasting System with the People’s Court of
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2020 Annual Report of Mango Excellent Media Co., Ltd.
Chongqing Pilot Free Trade Zone, claiming that the two defendants, without permission, had the music work i.e.
Opponent sang by guests in the variety show Sisters Who Brave Winds and Waves, and requesting to order Happy
Sunshine and Entertainment Channel to pay a total of RMB4.058 million comprising the indemnity for losses of
RMB4.0 million, the attorneys’ fees of RMB50,000 and the notarization fees of RMB8,000.
The music work involved was initially sung by the guest New Rap New Star in the program Listen Up.
Under the agreement on the contestant, it is New Rap New Star who shall be responsible for solving the dispute
over copyright. New Rap New Star has appointed an attorney to handle this case at their expense, who has
instituted proceedings for confirming the song copyright against Chongqing Daisheng. It is expected that this case
will have no material adverse effect on the financial situation of the Company.
XIV. EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE
1. Distribution of profits
In: RMB
Profits or dividends proposed to be distributed 231,449,076.43
Declared profits or dividends that has been deliberated and
231,449,076.43
approved
XV. OTHER SIGNIFICANT EVENTS
1. Segment information
(1) Determination basis and accounting policies of reporting segments
Happy Sunshine, the subsidiary of the Company, is engaged in two segments, new media platform operation and new media
interactive entertainment content production and operation, and cannot separate its assets and liabilities by industrial segments, hence
the Company’s assets and liabilities are not presented by industrial segments.
(2) Financial information of reporting segments
In: RMB
New media
New media
interactive
platform Media retail Inter-segment
Item entertainment Others Total
operation business offset
content production
and operation
Income from
13,991,615,817.0
principal operating 9,060,568,867.27 2,764,980,756.83 2,104,532,724.46 61,533,468.52
8
activities
Cost of principal
5,373,904,985.43 2,146,888,764.52 1,676,380,697.52 26,844,714.41 9,224,019,161.88
operating activities
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2020 Annual Report of Mango Excellent Media Co., Ltd.
XVI. NOTES TO MAIN ITEMS IN THE FINANCIAL STATEMENTS OF THE COMPANY
1. Other receivables
In: RMB
Item Closing balance Opening balance
Other receivables 260,068,347.20 260,036,746.64
Total 260,068,347.20 260,036,746.64
(1) Other receivables
1) Category of other receivables by nature
In: RMB
Gross carrying amount at the end of the Gross carrying amount at the beginning of
Nature
period the period
Petty cash 69,759.37 25,673.88
Receivables and payables 11,443.94
Amount due to or from related parties
260,000,000.00 260,000,000.00
within the scope of consolidation
Total 260,069,759.37 260,037,117.82
2) Provisions for bad debts
In: RMB
Stage I Stage II Stage III
Provisions for bad debts Future 12-month Lifetime ECL (without Lifetime ECL (with credit Total
ECL credit impairment) impairment)
Balance as at January 1,
371.18 371.18
2020
Balance as at January 1,
—— —— —— ——
2020 transferred to
-- Stage II -178.64 178.64
Provisions 326.41 714.58 1,040.99
Balance as at December
518.95 893.22 1,412.17
31, 2020
Changes in gross carrying amount whose loss allowance changed significantly in the current period
□ Applicable √ N/A
Disclosure by aging
249
2020 Annual Report of Mango Excellent Media Co., Ltd.
In: RMB
Aging Carrying amount
Within 1 year (including) 51,895.04
More than 1 year but not exceeding 2 years 260,017,864.33
Total 260,069,759.37
3) Provisions, recovery or reversal of bad debts for the period
Provisions 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
Other receivables for
which the bad debt
provision are made
by groups classified 371.18 1,040.99 1,412.17
according to credit
risk characteristics
Total 371.18 1,040.99 1,412.17
Significant recovery or reversal of provisions for bad debts for the current period:
In: RMB
Entity Amount of recovery or reversal Method of recovery
4) Top five closing balances of other receivables categorized by debtor
In: RMB
Proportion of total Closing balance of
Entity Nature Closing balance Aging closing balance of provisions for bad
other receivables debts
Hunan Mango
Amount due to or
Entertainment Co., 130,000,000.00 1-2 years 49.99%
from subsidiaries
Ltd.
Hunan Happy Money
Amount due to or
Microfinance Co., 130,000,000.00 1-2 years 49.99%
from subsidiaries
Ltd.
Total -- 260,000,000.00 -- 99.98%
250
2020 Annual Report of Mango Excellent Media Co., Ltd.
2. Long-term equity investments
In: RMB
Closing balance Opening balance
Items Gross carrying Provisions for Gross carrying Provisions for
Carrying amount Carrying amount
amount impairment amount impairment
Investments in
7,780,583,738.35 7,780,583,738.35 7,780,583,738.35 7,780,583,738.35
subsidiaries
Investments in
associates and 189,814,452.82 189,814,452.82
joint ventures
Total 7,780,583,738.35 7,780,583,738.35 7,970,398,191.17 7,970,398,191.17
(1) Investments in subsidiaries
In: RMB
Opening Increase or decrease for the period
Closing balance Closing balance
balance
Investees Additional Decreased Provisions for (carrying of provisions
(carrying Others
investment investment impairment amount) for bad debts
amount)
Hunan Happy
Money 300,000,000.0
300,000,000.00
Microfinance 0
Co., Ltd.
Hunan Happy
Sunshine
5,658,165,333. 5,658,165,333.
Interactive
48 48
Entertainment
Media Co., Ltd.
Hunan Mango
145,185,235.6
Entertainment 145,185,235.62
2
Co., Ltd.
Mango Studios 211,030,100.5
211,030,100.57
Co., Ltd. 7
Shanghai
Mangofun 334,876,836.7
334,876,836.75
Technology Co., 5
Ltd.
Shanghai
535,281,326.7
EE-Media Co., 535,281,326.72
2
Ltd.
251
2020 Annual Report of Mango Excellent Media Co., Ltd.
Happigo Co., 596,044,905.2
596,044,905.21
Ltd. 1
7,780,583,738. 7,780,583,738.
Total
35 35
(2) Investments in associates and joint ventures
In: RMB
Increase or decrease for the period
Closing
Opening Investment Closing
Adjustment Declared Provisions balance of
balance profit or Other balance
Investors Additional Decreased in other cash for provisions
(carrying loss under equity Others (carrying
investment investment comprehens dividends impairment for bad
amount) equity changes amount)
ive income or profits s debts
method
I. Joint ventures
II. Associates
Malansha
n Culture
Creative 189,814,4 189,295,8 -518,632.
Investme 52.82 20.20 62
nt Co.,
Ltd.
189,814,4 189,295,8 -518,632.
Sub-total
52.82 20.20 62
189,814,4 189,295,8 -518,632.
Total
52.82 20.20 62
3. Investment income
In: RMB
Items Amount for the current period Amount for the prior period
Income from long-term equity investments
-518,632.62 -7,121,117.50
under equity method
Income from disposal of long-term equity
70,383,379.80
investments
Income from investments in wealth
2,559,846.51
management products
Total 69,864,747.18 -4,561,270.99
252
2020 Annual Report of Mango Excellent Media Co., Ltd.
XVII. SUPPLEMENTARY INFORMATION
1. Breakdown of non-recurring profit or loss for the current period
√ Applicable □N/A
Item Amount Description
Profit or loss on disposal of non-current assets 70,055,759.62 Mainly due to income from equity disposal
Government grants recognized in profit or loss
(other than grants which are closely related to the
Company's business and are either in fixed 49,700,923.82
amounts or determined under quantitative methods
in accordance with the national standard)
Profit or loss on entrusted investments or assets
3,906,349.28
management
Reversal of provision for accounts receivable and
contract assets that are tested for impairment 31,747,600.00
losses individually
Other non-operating income or expenses other
-18,913,395.60
than the above
Less: effects of income tax 1,209.77
Effects attributable to minority interests 539,732.26
Total 135,956,295.09 --
It is required to specify the reason for defining items as non-recurring profit or loss items according to Information Disclosure
and Presentation Rules for Companies Making Public Offering of Securities No. 1－Non-recurring Profit or Loss, and reasons for
defining non-recurring profit or loss items illustrated in Information Disclosure and Presentation Rules for Companies Making
Public Offering of Securities No. 1－Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable √ N/A
2. Return on net assets and earnings per share
Earnings per share:
Weighted average return on net assets
Profit during the Reporting Period Basic earnings per share Diluted earnings per
(%)
(RMB/share) share (RMB/share)
Net profit attributable to ordinary
20.46% 1.11 1.11
shareholders of the Company
Net profit after deduction of
non-recurring profits or losses
19.06% 1.04 1.04
attributable to ordinary
shareholders of the Company
253
2020 Annual Report of Mango Excellent Media Co., Ltd.
Section XIII List of Documents Available for Inspection
1. Financial statements with seals and signatures of legal representative, the chief financial officer and the head of accounting
department (the person in charge of accounting).
2. The original auditor’s report with seals of the accounting firm and seals and signatures of the certified public accountants.
3. All original documents and announcements of the Company publicly disclosed in the websites designated by the CSRC within the
Reporting Period.
4. Other relevant materials.
254
