Mango Excellent Media Co., Ltd. Annual Report 2021
Mango Excellent Media Co., Ltd.
Annual Report 2021
2022-021
April 2022
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Mango Excellent Media Co., Ltd. Annual Report 2021
Section I Important Note, Table of Contents and Definitions
The Board of Directors, the Board of Supervisors, directors,
supervisors and executives of the Company hereby warrant that the
information contained in this Annual Report is true, accurate and
complete and this Annual Report is free from any misrepresentation,
misleading statement or material omission, and agree to assume joint
and several liability for this Annual Report.
ZHANG Huali, Principal of the Company, CFO LIANG Deping
and Chief Accountant TAO Jinyu hereby represent that the financial
statements contained in this Annual Report are true, accurate and
complete.
All directors of the Company attended the meeting of the Board
of Directors reviewing this Report.
This Report contains certain forward-looking statements
regarding future plans, development strategies and other projected
matters, which do not constitute any substantial covenant made by
the Company to the investors. The investors and related persons shall
be fully aware of the relevant risks, and understand the differences
among such plans, forecasts and covenants.
The Company has stated in details the possible risks in its
operation and countermeasures in this report. Investors are advised
to refer to the Section III “Management’s Discussion and Analysis -
Prospects for future development of the Company”.
According to the profit distribution proposal approved by the
Board of Directors, the Company will distribute a cash dividend of
RMB1.30 (inclusive of tax) per 10 shares to all shareholders on the
basis of 1,870,720,815 shares, and will not distribute any bonus
shares or transfer any capital reserve to the share capital.
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Mango Excellent Media Co., Ltd. Annual Report 2021
Table of Contents
Section I Important Note, Table of Contents and Definitions ..................................2
Section II Company Profile and Key Financial Indicators ...................................... 6
Section III Management’s Discussion and Analysis ................................................10
Section IV Corporate Governance ........................................................................... 39
Section V Environmental and Social Responsibility ...............................................62
Section VI Important Events .................................................................................... 63
Section VII Share Changes and Information of Shareholders .............................. 80
Section VIII Preferred Shares ...................................................................................91
Section IX Bonds ........................................................................................................ 92
Section X Financial Report ....................................................................................... 93
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Mango Excellent Media Co., Ltd. Annual Report 2021
List of References
1. Financial statements signed and chopped by the principal, CFO and Chief Accountant of the Company;
2. Original of the auditor’s report stamped with the seal of the accounting firm and signed and chopped by the
certified public accountants;
3. Originals of all documents of the Company publicly disclosed on the website for information disclosure
designated by the China Securities Regulatory Commission during the reporting period and related
announcements; and
4. Other references.
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Mango Excellent Media Co., Ltd. Annual Report 2021
Definitions
Terms Definition
Mango Excellent Media, Company,
means Mango Excellent Media Co., Ltd.
we/our or the Listed Company
Mango Excellent Media Co., Ltd. means The full name of the Company in English.
MANGO means the short name of the Company in English.
Hunan Happy Sunshine Interactive Entertainment Media Co.,
Happy Sunshine means
Ltd., a wholly-owned subsidiary of the Listed Company.
Mango Studios Culture Co., Ltd., a wholly-owned subsidiary of
Mango Studios means
Happy Sunshine.
Hunan Mango Entertainment Co., Ltd., a wholly-owned
Mango Entertainment means
subsidiary of Happy Sunshine.
Shanghai EE-Media Co., Ltd., a wholly-owned subsidiary of the
EE-Media means
Listed Company.
Shanghai Mangofun Technology Co., Ltd., a wholly-owned
Mangofun means
subsidiary of Happy Sunshine.
Happigo Co. Ltd., a wholly-owned subsidiary of the Listed
Happigo means
Company,
Happy Money means Hunan Happy Money Microfinance Co., Ltd.
The online video platform affiliated to the Listed Company and
Mango TV means
operated by Happy Sunshine.
Mango Media means Mango Media Co. Ltd, controlling shareholder of the Company
Hunan Broadcasting System means Actual controller of the Company
Golden Eagle Broadcasting System Co., Ltd., an integrated
GBS means company operated by the Hunan Broadcasting System (HBS),
the actual controller of the Company.
Hunan Broadcasting Network Holding Group Co., Ltd., a
HBNHG means
subsidiary of GBS.
Xiaoxiang Film Group means Xiaoxiang Film Group Co., Ltd., a subsidiary of GBS.
HTBI means Hunan TV & Broadcast Intermediary Co., Ltd.
China Mobile means China Mobile Communications Group Co., Ltd.
Internet protocol television, a technology integrated with
internet, multimedia, communication and other technologies
IPTV means
that provides home users with digital television and other
interactive services through broadband network.
Over the top, which provides a variety of video and data
OTT means
services to users via the Internet.
Intellectual properties, the property rights given to persons over
IP means
the creations of their minds.
APP means Application, mobile application program.
PAD means Portable device.
PC means Personal computer.
TV means Television.
AR means Augmented reality.
VR means Virtual reality.
5G means 5G network.
UGC means User generated content.
QM means QuestMobile, a mobile web big data company
KOL means Key Opinion Leader
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Mango Excellent Media Co., Ltd. Annual Report 2021
Section II Company Profile and Key Financial Indicators
I. Company profile
Stock short name Mango Stock code 300413
Chinese name 芒果超媒股份有限公司
Chinese short name 芒果超媒
English name (if any) Mango Excellent Media Co., Ltd.
English short name (if any) Mango
Legal representative ZHANG Huali
Registered address Golden Eagle TV Culture City, Changsha, Hunan
Postal code of registered address 410003
History of changes in registered None
address
Office address Golden Eagle TV Culture City, Changsha, Hunan
Postal code of office address 410003
Company website https://www.mgtv.com
Email mangocm@mangocm.com
II. Contact person and contact information
Board Secretary Securities Affairs Representative
Name WU Jun HUANG Jianyong
Golden Eagle TV Culture City, Changsha, Golden Eagle TV Culture City, Changsha,
Address
Hunan Hunan
Telephone (0731) 82967188 (0731) 82967188
Facsimile (0731) 82897962 (0731) 82897962
Email mangocm@mangocm.com mangocm@mangocm.com
III. Information disclosure and place for keeping annual report
Website of the stock exchange disclosing the
http://www.szse.cn
Company’s annual report
The China Securities Journal, the Securities Times, the
Media and website disclosing the Company’s annual
Securities Daily, the Shanghai Securities News and
report
http://www.cninfo.com.cn
Place for keeping the Company’s annual report Board of Directors Office of the Company
IV. Other related information
Accounting firm engaged by the Company:
Name of accounting firm Pan-China Certified Public Accountants LLP
6/F, No. 128, Xixi Road, Xihu District, Hangzhou City,
Office address of accounting firm
Zhejiang Province
Name of accountants signing this report LIU Gangyue and ZHANG Hong
Sponsor institution engaged by the Company that performs the duties of ongoing supervision over the Company
during the reporting period:
√Applicable □ N/A
Name of sponsor Office address of sponsor Sponsor’s Period of continuous
institution institution representative supervision
China International 27 & 28/F, Block 2, China YAO Xudong and From August 24, 2021 to
Capital Corporation World Towers, No. 1 WANG Kun December 31, 2023
Limited Jianguomenwai Street,
Chaoyang District, Beijing
Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company
during the reporting period:
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Mango Excellent Media Co., Ltd. Annual Report 2021
□ Applicable √ N/A
V. Key accounting data and financial indicators
Did the Company need to retrospectively adjust or re-state accounting data of prior accounting years?
□ Yes √ No
Y/Y %
2021 2020 2019
change
Operating revenue (RMB) 15,355,863,482.07 14,005,534,955.36 9.64% 12,500,664,232.05
Net profit attributable to
shareholders of the listed 2,114,090,171.85 1,982,159,476.82 6.66% 1,156,285,253.73
company (RMB)
Net profit attributable to
shareholders of the listed
company after deduction of 2,059,758,151.24 1,846,203,181.73 11.57% 1,093,036,165.68
extraordinary gain or loss
(RMB)
Net cash flows from operating
561,800,882.37 580,970,353.08 -3.30% 292,866,711.18
activities (RMB)
Basic earnings per share
1.17 1.11 5.41% 0.66
(RMB/share)
Diluted earnings per share
1.17 1.11 5.41% 0.66
(RMB/share)
Weighted average return on
16.25% 20.46% -4.21% 15.68%
net assets
Y/Y %
End of 2021 End of 2020 End of 2019
change
Total assets (RMB) 26,110,751,404.90 19,265,699,802.98 35.53% 17,078,206,149.68
Net assets attributable to
shareholders of the listed 16,966,400,358.23 10,587,978,185.42 60.24% 8,783,859,219.07
company (RMB)
Whether the lower of the net profit before and after deduction of extraordinary gain or loss in the past three
accounting years has been negative and the most recent annual auditor’s report indicates that the Company’s ability
to continue as a going concern is uncertain?
□ Yes √ No
Whether the lower of the net profit before and after deduction of extraordinary gain or loss is negative?
□ Yes √ No
VI. Key financial indicators by quarter
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 4,008,953,829.13 3,844,274,956.64 3,778,078,677.52 3,724,556,018.78
Net profit attributable to
shareholders of the listed 773,455,157.66 677,752,452.09 528,792,372.20 134,090,189.90
company
Net profit attributable to
shareholders of the listed
company after deduction 771,179,702.79 668,842,459.86 531,484,128.95 88,251,859.64
of extraordinary gain or
loss
Net cash flows from
426,746,375.68 -24,802,517.88 -76,777,607.56 236,634,632.13
operating activities
Whether there’s any material difference between the financial indicators or aggregate amounts thereof set out
above and the corresponding financial indicators set out in any quarter report or semi-annual report of the
Company already disclosed?
□ Yes √ No
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Mango Excellent Media Co., Ltd. Annual Report 2021
VII. Differences in accounting data arising from adoption of foreign and
Chinese accounting standards concurrently
1. Differences between net profit and net assets disclosed on the financial statements
according to the international accounting standards and the Chinese accounting
standards concurrently
□ Applicable √ N/A
There wasn’t any difference between net profit and net assets disclosed on the financial statements for the
reporting period due to adoption of the international accounting standards and the Chinese accounting
standards by us concurrently.
2. Differences between net profit and net assets disclosed on the financial statements
according to the foreign accounting standards and the Chinese accounting standards
concurrently
□ Applicable √ N/A
There wasn’t any difference between net profit and net assets disclosed on the financial statements for the
reporting period due to adoption of the foreign accounting standards and the Chinese accounting standards
by us concurrently.
VIII. Items and amounts of extraordinary gains or losses
√ Applicable □ N/A
In RMB
The amount of The amount of The amount of
Item Remark
2021 2020 2019
Gain or loss on disposal of
non-current assets (including
501,358.91 70,055,759.62 -253,138.65
allowance for impairment of assets
that has been written off)
Government grants recognized in
profit or loss (excluding government
grants that are closely related to the
business of the Company and are 35,999,768.69 49,700,923.82 57,599,556.19
provided in fixed amount or quantity
continuously according to the
applicable polices of the country)
Gain or loss on assets under entrusted
34,265,617.23 3,906,349.28 7,344,704.18
investment or management
Reversal of impairment loss on
accounts receivable tested for 4,843,660.00 31,747,600.00 1,800,000.00
impairment individually
Other non-operating revenue and
-21,265,876.15 -18,913,395.60 -111,786.45
expenses
Less: Effect of income tax 1,209.77 2,138,585.88
Effect of minority interest (exclusive
12,508.07 539,732.26 991,661.34
of tax)
Total 54,332,020.61 135,956,295.09 63,249,088.05 --
Other items of gain or loss within the meaning of extraordinary gains or losses:
□ Applicable √ N/A
We do not have any other item of gain or loss within the meaning of extraordinary gains or losses.
Classification of any item of extraordinary gain or loss defined by the Explanatory Announcement No. 1 on
Information Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurrent
profit or loss:
□ Applicable √ N/A
We have not classified any item of extraordinary gain or loss defined by the Explanatory Announcement No. 1 on
Information Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurrent
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Mango Excellent Media Co., Ltd. Annual Report 2021
profit or loss during the reporting period.
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Mango Excellent Media Co., Ltd. Annual Report 2021
Section III Management’s Discussion and Analysis
I. Situations of our industry during the reporting period
1. As the main arena, battlefield and forefront, the media are undergoing in-depth convergence.
The Resolution of the Central Committee of the Communist Party of China on the Major Achievements
and Historical Experience of the Party over the Past Century states that the Party puts heavy emphasis on
developing and creating new means of communication; it has promoted integrated development of media,
and worked to strengthen the penetration and credibility of the media and its ability to guide and influence;
the Party therefore attaches great importance to the Internet as the main arena, battleground, and forefront of
the ideological struggle; it has improved the leadership and management systems for the Internet, regulated
the cyberspace according to the law, and strived to foster a clean online environment. Along with the
promulgation and implementation of the Anti-trust Guidelines for Platform Economy, comprehensive
rectification and control of the cultural and entertainment sector and launch of “Qinglang” special campaigns,
the elements of internal and external development of the Internet industries and the cultural and
entertainment sector have been further regulated, disorderly competitions have been effectively curbed, and
the industry has become more orderly. Long-term development, proprietary content and innovation have
become common understanding about the development of Internet content platforms in the new era.
2. The video industry enters the era of competition for existing users, and witnesses changes in market
recognition, development pattern and underlying logics.
According to the Annual Report on China’s Mobile Internet Development 2021 published by
QuestMobile, as of the end of 2021, there were 1.174 billion mobile Internet subscribers in China; the
coverage of the mobile Internet has reached the saturation point generally; the total number of subscribers
increased slightly. The industry enters the era of competition for existing users in the number and activeness
of subscribers and market penetration. The market recognition, development pattern and underlying logics of
the long video industry are undergoing radical changes, the traffic-guided expansion is drawing to an end, the
development model that gains market share through cash burning can not be cast off overnight, and the
number of subscribers and paid members of some platforms has stopped increasing. In the context of such
changes, the long video industry finds new opportunities of development, and it becomes critical for the new
pattern of the long vide sector to return to the essence of content creation, increase the conversion rate of
existing users and operate member service ecosystem meticulously.
3. The Internet advertising market is growing steadily and the media content marketing has become the
core driving force for the industry.
According to the Annual Report on China’s Mobile Internet Development 2021 and relevant data
published by QuestMobile, the total size of the advertising and promotion market increased more than 11%
year on year; the Internet advertising market has maintained a good momentum of development, reflected by
the continuous increase in the duration of use of online products and frequency of interaction by users of
video platforms and other content media, which propels the brands to attach great importance to content
operations; the market share of content operations has been increasing continuously; and the growth rate of
effect advertisements is close to 60%. In the field of long video streaming advertisements, the integrated
platforms having content ecosystem covering the entire industry chain are continuously consolidating their
market position. The integrated video platforms are enhancing their advantages in conversion rate at
terminals of the advertising consumer market, customer adhesion, IP premiums, brand expansion and other
areas, and major advertisers show a greater preference for leading new media platforms.
4. Along with the upgrading of user base, content quality and technical standards, the development of big
screen smart IPTV is accelerating.
According to the Communications Statistics Bulletin 2021, there were 349 million IPTV subscribers in
China in 2021, a net increase of 33.36 million year on year; and the three major carriers had 536 million
broadband subscribers in total, which means that the penetration of IPTV among broadband subscribers
reaches more than 65%. According to the Asia Pacific Pay TV Forecasts issued by Digital TV Research, the
number of IPTV subscribers in China will increase by 44 million between 2021 and 2027. The subscribers of
big screen smart TV, mainly IPTV, have the core characteristics of high confidence of TV subscribers and
high adhesion of paid subscribers. High quality content, rapid popularization of 4K/8K ultra HD standard,
improved user experience realized by smart recommendation and waterfall display have become main
driving forces behind the upgrading and accelerated development of the smart big screen sector.
5. The content sector is improving quality and reducing volume, and the market share of positive energy
and central theme content is growing steadily.
According to the 2021 Insights into Entertainment issued by Endata, the production of variety shows
has decreased for three consecutive years. In 2021, 428 variety shows were released in total, a decrease of
more than 5% as compared with the preceding year. The policies relating to variety shows have been further
improved, as a result of which, the traffic hype, excessive entertainment and other adverse trends have been
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Mango Excellent Media Co., Ltd. Annual Report 2021
effectively curbed, and the positive energy works continuously guide the industry. Though long video
platforms still maintain the traditional system superiority in the field of variety shows, short video platforms
are actively making breakthroughs by releasing vertical and innovative variety shows, and a variety of
mid-form, short and micro variety shows have sprung up and become new focus of the industry. In the field
of films and TV dramas, the total number of home-made TV dramas and series decreased as compared with
the preceding year, traffic stars, hot topic hype and other development patterns of the industry in the past
began to ebb, and excellent TV dramas and series with good conception, stories and reputation and
respecting aesthetic standards of audiences become the focus of the market. TV dramas and series giving full
scope of the central theme of the times and focusing on hot topics win the market by their quality and gain
reputation and popularity; key TV dramas and series make a strong performance on the market; short TV
dramas grow rapidly; high-quality short TV dramas have become the new and main development direction
for the long video streaming platforms due to their brands, intensification and normality; and creative
network micro-dramas and IP derivate dramas grow continuously, to further satisfy the diversified demands
of market segments.
6. Enhancing the protection of content copyright has become a common understanding of the industry,
promoting the integration and sound development of long and short videos.
In 2021, a number of content industry associations, video platforms, film and TV companies and other
stakeholders jointly participated in the publication of the Joint Declaration on the protection of copyright in
films and TV dramas, the 2021 Whitepaper on the Protection of Copyright in Short Videos in China, and the
Standard and Detailed Rules for the Examination of Network Short Videos, appealed to the short video
platforms and public account producers and operators to respect authorship and protect copyright, so that the
practices and standards relating to short videos have been further defined and improved. To improve the
copyright protection practices of the long and short video industry has become a common understanding of
the industry, and the major market players’ awareness of copyright protection has been enhanced generally.
The long video platforms, on the basis of high-quality variety shows, dramas, series, films and other key
content IPs, actively innovate in mid-form, short and micro videos, continuously enhance commercial
incentives and traffic support, and actively promote the ecological extension of PUGC, resulting in an
increase in market share of excellent micro-shows and micro-dramas. The short video platforms continuously
increase investment in the ecosystem for professional user generated content, widen the traffic distribution
channels in a variety of ways, further exploit the lower-tier and overseas markets, and focus on monetization
of the value of “short video + e-commerce” users.
7. The metaverse industry is on the upswing, and virtual human, VR/AR, digital collection and other
frontier metaverse technologies guide the trend of innovation of the content industry.
Digital virtual human, VR/AR, digital twin, digital collection and other frontier metaverse technologies,
exploration of new-generation Internet patterns and other new trends of the industry have drawn wide
attention throughout the world, and more and more social media, gaming, e-commerce, advertising, and long
and short video platforms begin to set foot in this field. Creation of virtual content, copyright protection
using block chain encryption technology and digital circulation of assets have become the innovation trends
of the cultural and media industry. The industries, universities and research institutes work together to
promote the commercialization of metaverse technologies. A variety of software and hardware products
designed to cope with the demands of young people for new-pattern content have been released, promoting
innovation in high-quality content IPs, development of related frontier technologies, and rapid upgrading of
business models. New-type interaction content, 3D virtual social media, integrated virtual and real shopping,
and other kinds of metaverse-related business innovations have become hot topics of the market.
8. The competition in content among e-commerce platforms is turning white-hot, and the construction of
vertical platform ecosystem is enhanced.
According to the Annual Report published by QuestMobile, e-commerce shopping is growing steadily,
and the number of mobile subscribers has exceeded 1.1 billion. In the context of new market pattern, the
competition for customer traffic among all kinds of e-commerce platforms in their social media, community
and content operations is turning white-hot. The lower-tier markets have become the main source of new
customers. The new-type content e-commerce platforms further enhance their advantage in the conversion
rate of “recommendation”. The major e-commerce platforms continuously innovate in and produce
“recommendation” content, and on the basis of intelligent algorithms, access different kinds of potential
users through multiple channels, in various forms and a variety of market segments, and promote
multi-dimensional binding and in-depth linkage between audiences and content, products, brands and
platforms. Through restructuring human, goods, stores and other factors, the new-type content e-commerce
platforms continuously upgrade the past shopping environment to “social media + shopping environment”,
and create an immersive shopping experience by building diversified scenarios and using new digital
technologies, to improve the efficiency of monetization. By cooperating with leading IP and creative content
providers, professional artists and KOL talents, the platforms actively explore new e-commerce models, and
collaborate with mid- and short-form content, IP derivates, live streaming commerce and other new
e-commerce distribution channels, in order to stimulate users’ purchase intention by means of content, and
create an organic cycle of human, goods and content that co-exist and promote each other.
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Mango Excellent Media Co., Ltd. Annual Report 2021
II. Our main business during the reporting period
We are required to comply with the disclosure requirements applicable to “Internet video business” set forth
in the Guide on Self-regulatory Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 –
Disclosure of Industry Information by the Companies Listed on the ChiNext Board.
We are the first state-owned new media company listed on the A-share market that is characterized by
integrated development, and has built a core industry chain covering all channels and the entire content
ecosystem, and is the integrated convergence media industry and capital operation platform affiliated to GBS
(HBC). Our main business includes Mango TV Internet video business, new media interactive entertainment
content production and content e-commerce business. Relying on the Mango convergence media ecosystem,
and centered on the Internet video platform operation, we have built an entire media industry chain ecosystem
covering membership, advertising, IPTV, OTT, films and TV dramas, variety shows, artist agency, music
copyright operation, IP derivative development and live entertainment, content e-commerce, etc.,
characterized by synergetic development of the upstream and downstream.
1. Mango TV Internet video business
Mango TV Internet video business mainly includes advertising, membership and operator business. The
advertising business is classified into soft advertising business and hard advertising business; where the soft
advertising business centers on content, and fully exploits the market value of high-quality content IPs, to
provide customers with naming rights, implant and other advertising products; and hard advertising business
provides customers with pre-roll, inserted and other advertising services. The membership business is
classified into online membership business and offline membership business; where the online membership
business means such business activities where we attract users to purchase member packages on line on the
basis of our rich copyright resources and high-quality content released by us exclusively; and the offline
membership business mainly attracts target audiences to become our members through promotional activities
in various forms. The operator big screen business means such business activities where we enter into
cooperation agreements with major carriers and cable TV operators, pursuant to which we provide them with
content products and give cooperation to them in their marketing and promotional activities, and share the
relevant revenues with them.
2. New media interactive entertainment content production
Our new media interactive entertainment content production business mainly includes content
production and operation, artist agency, music copyright, IP derivatives development and location based
entertainment business. The content production and operation business mainly includes production of variety
shows, films and TV dramas and content copyright operation, reflecting our core competencies. As a leading
content producer, we produce proprietary and customized high-quality content, to publicize the positive
energy of the society, guide the culture and values of young people, and bring social benefits as a
state-owned cultural company. On the other hand, we use our high-quality content to attract members, serve
advertisers or otherwise bring economic benefits. In the artist agency business, we seek and train new talents
having great potentialities, provide artists with comprehensive services including positioning, publicity,
modeling, commercial sponsorship, etc., build an echelon of artists at all levels and of various types, and
create a closed loop of artist agency business by arranging the artists to take part in films, TV dramas, variety
shows, commercial performances, branded concerts, brand sponsorship, peripheral derivatives license or
otherwise. In the music copyright business, on the basis of music IP resources accumulated and continuously
enriched by the artists, we grant online App licenses, overseas digital music licenses, game licenses, program
licenses, background music licenses for films and TV dramas and other digital music licenses. In the IP
derivative development and live entertainment business, relying on the rich IPs of Mango family, such as
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Mango Excellent Media Co., Ltd. Annual Report 2021
Who’s the Murderer, Great Escape and other hot programs, we grant multi-dimensional IP derivatives
licenses, carry out offline location based entertainment business around the country, and build M-CITY
brand.
3. Content e-commerce business
Our content e-commerce business mainly includes Happigo, a media e-commerce platform transformed
from traditional TV shopping, and Xiaomang, a vertical content e-commerce platform targeting youngsters
on the basis of our rich long videos. The media e-commerce business mainly relies on TV screen, while also
promotes interaction between big screen and IPTV, mobile App, mini program and other small screens, and
multi-channel operations. Xiaomang e-commerce platform is designed as “a content e-commerce platform
focusing on home-made new fashions”, puts forward a slogan of “go to Xiaomang to find home-made new
fashions”, recommends home-made goods to young users using high-quality content, and builds a wholly
new e-commerce model centered on “content + community + e-commerce”.
III. Analysis of core competencies
1. Important opportunities for in-depth integrated development of media
The commencement of the 14th Five-year plan period and the promulgation of the Opinions on
Accelerating the In-depth Integrated Development of Media by the General Office of CCCPC and the
General Affairs Office of the State Council mark the integrated development of media enters a new journey
in the second half, and the Party media and state-owned enterprises face a period of important opportunities
for high-quality development. In this course of history full of honors and dreams, we have the sense of
responsibility and mission that “the main forces shall enter the main arena”, and will give full play to our
advantages as an integrated media platform, actively carry out mainstream propaganda campaigns and
content upgrading campaigns, lay stress on talent management, cope with trade competition, through
innovation in systems and mechanisms, build an integrated mainstream new media group and ecosystem, and
establish new standards for stated-owned Internet companies, to make the main forces become real main
forces and the main arena actually play its role.
2. Advantages of Mango convergence media in joint development of double platforms
In conformity with the trend of in-depth integrated development of media, HBS has built the sole
double platforms in the country, i.e. the mainstream new media platform Mango TV and the traditional media
Hunan TV. These two platforms are committed to realizing win-win development, by building a joint
development model characterized by co-creation and sharing, have realized content creation, advertising
marketing, joint interview and broadcasting and other areas, and mutual supplement in product cluster and
linkage, and actually brought benefits of reform and development through integrated development of media,
and in iteration and symbiosis, laid a solid foundation for the building of a mainstream new media group
with strong propagation force, guiding force, influence and credibility.
3. Innovation gene based on the concept of “innovate or die”
We carry the innovation spirit of HBS, and stick to the concept of “innovate or die”; with respect to
mechanisms, have established the open and innovative incentive system, and vigorously promoted team
system and studio system, to create a sound external environment for the employees that bears the basic risks
and arouses their enthusiasm; with respect to management, organized “Mango Youth Talk”, “Young CEO
Club”, “Qingmang Internship Program” and other activities, to build innovation and creation exchange
platforms for young people and continuously improve our innovative talent pool and echelon building system;
with respect to business, set the goal of “do it first or be the best”, continuously enhanced content innovation
and upgrading, and preserved our core competencies in content creation; and with respect to technology,
accurately understood the development trend of the industry, made forward-looking arrangements for new
technologies and new businesses, taken part in competition for future communication patterns, and
accelerated the in-depth integration of culture and technology.
4. The smart mid-end matrix enables systemic production of proprietary content
We stick to the business philosophy that “content is the king”, rely on our strong content production
teams, secure core essential production factors, and build a high-level long video platform. As of the end of
the reporting period, Mango TV has 26 variety show production teams, and has built a proprietary variety
show system having strong competencies and high market value in the industry, and become the largest
variety show producer. With respect to TV dramas and series, we now have 29 film and TV drama
production teams and 34 strategic studios under the Xinmang Program, and in reliance on Mango ecosystem,
actively innovate in the integration of TV station and network. In addition, we have built a smart mid-end
matrix, and realized standardized coordination in assessment, operation, product, technology and other
aspects of content production, in order to build a joint action mechanism with efficient processes, activated
elements and agile operation that enables sound management, liberate the production forces of the content
teams and continuously consolidate and improve the high-quality proprietary content with plentiful layers
and special characteristics of Mango.
5. Differential positioning of “youth, metropolis and women”
13
Mango Excellent Media Co., Ltd. Annual Report 2021
We stick to the special content strategy and platform positioning of “youth, metropolis and women”, to
ensure that our clear user base, fine content products and advertisers are linked and fit perfectly with each
other. The overall user image of Mango TV is “vigor, fashion and quality”, among others, and its percentage
of women users is higher than the average level of the industry. Clear user imaging and platform positioning
will enhance our special advantages in realizing compound value of content IPs through multiple channels
and in a variety of ways, and building membership operation system. On this basis, we will continuously
enrich the content matrix, to acquire more diversified users.
6. Ecological advantage with joint actions of the upstream and downstream of the entire industry
chain
In reliance on our advantages in content production, we continuously build the closed loop of new
media ecosystem covering the entire industry chain of media and Internet, where the upstream mainly
includes artist agency and variety show, film and TV drama production business, the mid-stream is
responsible for content operation and distribution through multiple channels provided by the online video
platforms, in reliance on our strong content production capabilities and high-quality content matrix, and the
downstream is responsible for adaption and development of Mango family content IPs and derivatives of
offline location based entertainment, and on the basis of content, creates a wholly new video content
e-commerce model centered on “video + content + e-commerce”, and realizes monetization of derivatives
through multiple online and offline channels. All links in our industry chain coordinate and supplement with
each other, creating integrated Mango ecosystem covering the entire industry chain with special
characteristics in the context of media convergence.
7. “One cloud and multiple screens” system covering all terminals and supported by multiple
licenses
Mango TV is the sole market player in the Internet video industry that holds both IPTV and OTT
business licenses, and its smart big screen business has covered 31 provincial regions in China, and is an
important supporting point for us to develop 5G and living room economy. In reliance on our complete
licenses, our video content business covers all terminals, including mobile phone, PAD, TV, IPTV and OTT.
We are the first video media platform that has actually built “one cloud and multiple screens” system in the
industry.
8. Sustainable business model
On the basis of our attributes as a video platform and gene of content production, we have blazed a
development path different from other Internet platforms. On the one hand, we have realized effective
control over content production costs through accurate user positioning, strong content production
capabilities, and effective cluster of core production factors. On the other hand, in reliance on our
industry-leading model of monetization through “membership + advertising + operator” channels, we have
developed multiple sources of revenue, and become the sole market player in the Internet video industry that
has made profits and maintained profitability.
IV. Analysis of main business
1. Overview
The year of 2021 stood at the historical intersection of the Two Centenary Goals and was the 100th
anniversary of the Communist Party of China and the first year of the 14th Five-year Plan, starting a new
journey for building a modern socialist country in all respects. Guided by the spirit of series of important
speeches of General Secretary Xi Jinping, we resolutely implement the decisions and arrangements by the
Central Government about the in-depth integrated development of media and comprehensive rectification of
the cultural and entertainment sector, strictly perform our missions and duties as a Party media and
state-owned company, focus on the building of a mainstream new media group in the new period of
development, cope with the changes in the competition pattern of the industry, continuously enhance the
values guiding role of media and innovation in proprietary content, actively deal with the repeated shocks
brought about by COVID-19, and promote the steady and high-quality development of all lines of business.
During the reporting period, our operating revenue totaled RMB15.356 billion, an increase of 9.64% year on
year; and the net profit attributable to the shareholders of the Listed Company was RMB2.114 billion, an
increase of 6.66% year on year. Our core business, Mango TV Internet video business (advertising +
membership + operator business), has grown steadily and realized an operating revenue of RMB11.261
billion, up 24.29% year on year.
(1) Increase the mainstream voice and play the strong tone of the times, to celebrate the 100th
anniversary of the Communist Party of China
“A Party media must be absolutely loyal to the Party”. We always follow the correct political direction,
direction of public opinions and values, innovate on the basis of what has worked in the past, and resolutely
occupy the mainstream propaganda front. With respect to the propaganda of important themes, Mango TV
always places “Study Time” highlighted in red on its homepage, launched the special channel “100th
anniversary of the Communist Party of China”, and released TV dramas “Faith Makes Great” and
14
Mango Excellent Media Co., Ltd. Annual Report 2021
“Refinement of Faith” dedicated to the 100th anniversary of the Communist Party of China, focusing on the
historic leap achieved by the Chinese people under the leadership of the Communist Party of China from
standing upright to becoming prosperous and growing in strength in various forms. With respect to newsreels,
we established special documentary studios focusing on the creation of central theme works, and released 17
central theme high-quality documentaries carrying forward positive energy, including “Daughter of the
Party”, “We Are Young” and “Mundane Glory: Here Comes The Party”, of which, “Mundane Glory” was
awarded a second prize in the 31st China News Awards, which fully reflects our mission and responsibility of
the times as a mainstream new media. With respect to international communication, we upgraded the
international App of Mango TV in an all-round way, and launched “Chinese Culture”, “100th anniversary of
the Communist Party of China”, “Traditional Chinese Culture Channel” and other special sections, to build it
into an important window for Chinese culture to go global.
(2) Innovate in the system and mechanisms, consolidate our advantages in the production of
proprietary content and enhance the values guiding role of content
We stick to the philosophy that content is the king for a high-level long video platform, concentrate our
efforts on the creation of content that satisfy the demands of the times, reflect the social sentiment and
address the concerns of the public, resist the chaotic phenomenon of the industry through our practical
actions, and strive to guide the new-round of innovation and build a high-quality, sound and sustainable
proprietary content ecosystem.
With respect to variety shows, Mango TV has 26 variety show production teams, and has established a
production center, and technical, director and photographic, packaging and other multi-dimensional studios,
to provide professional support to content production; established the variety show authorization committee,
to regulate the whole-course management of content production and effectively control production costs;
made continuous efforts to explore innovation mechanisms and incentive mechanisms for content products,
improve the efficiency of team cooperation, fully stimulate the creativity of content teams, and cultivate the
endogenous impetus for content innovation. During the report period, Mango TV released more than 40
variety show programs; of which, “Call Me By Fire”, “Braving Life” and other programs salute the fighting
spirit of the times; “Call Me By Fire” has become another hot program following “Sisters Who Make
Waves”; “Dawan District Brothers” marks the integration of Hong Kong and Chinese Mainland; “See You
Again” reflects the social reality from the perspective of “cooling-off period before divorce” introduced by
the new marriage law; and “Sisters Who Make Waves”, “Who’s the Murderer”, “Great Escape”, “Viva La
Romance”, “Meeting Mr. Right” and other N-generation proprietary flagship variety show programs have
become the evergreen of the industry.
With respect to films and TV dramas, Mango TV has 29 film and TV drama production teams and 34
strategic studios under the “Xinmang Program”, and has established the film and TV drama planning
committee, responsible for overall management of planning, production and assessment of TV dramas and
series, and whole-course control over the assessment, authorization, production, broadcasting, review and
other activities, in order to effectively improve the quality of films and TV dramas, and competencies of the
platform in the field of TV dramas and series. In 2021, Mango TV released 170 films and TV dramas in total,
including 55 key films and TV dramas, and 84 micro and short dramas under the “Big Mango Program”. The
“Mango Monsoon” theater takes the lead in the industry in resisting water injection dramas, suspended
expressions, reliance on traffic and traditional broadcasting system, promotes the new pattern of the industry
and innovation and development of the film and TV industry, and has released nine high-quality innovative
short dramas, including “Hunter”, “The Lie Detective” and “Remembrance of Things Past”. “The Rational
Life”, “Unforgettable Love”, “Stand by Me”, “Love at Night”, “Love is Beautiful”, “As We Wish” and other
key films and TV dramas have also been well received by the audiences. With respect to micro and short
dramas, Mango TV has established the “Big Mango Program” to support the production of mid- and
short-form videos. “The Queen of Attack”, a hot micro and short drama of the year, has been well received
by the audiences and viewed more than 500 million times.
15
Mango Excellent Media Co., Ltd. Annual Report 2021
(3) Consolidate the smart mid-end, gather the momentum of development and maintain the steady
growth of the core Internet video business
Mango TV has made continuous efforts to build a big operation system, and in reliance on the integrated
smart mid-end matrix consisting of content mid-end, technology mid-end, risk control mid-end and operation
mid-end, created business synergy in multi-screen integration, advertising membership operation and other
core business segments, and improved the market value of content IPs. Mango TV Internet video business
has realized steady growth of revenue, and increase in margin rate year on year, and constitutes an ever
increasing proportion in our total operating revenue, and its position as the core pillar of the main platform
becomes more and more prominent.
With respect to the advertising business, in addition to ensuring high-quality content, we actively
explore the new marketing models, and exploit the advertising value of programs. During the reporting
period, we developed 118 new advertisers, more than 1,000 brands ran soft, hard, programmatic and other
advertisements on Mango TV, and our revenue from the advertising business exceeded RMB5 billion for the
first time, totaling RMB5.453 billion, an increase of 31.75% year on year. By providing one-stop marketing
services, the amount of sponsorship fees received by our major variety show programs has hit record highs
repeatedly. The amount of sponsorship fees received by “Sisters Who Make Waves S2” hit record high in the
industry. The advertising and sponsorship fees received by high-quality N-generation proprietary variety
show programs have been increasing steadily. The customized advertisements inserted in variety show
programs adopt the model of “IP & brand interaction”, and the revenues from which have grown
significantly for four consecutive years. With respect to advertisements inserted in TV dramas, we adopt the
differential strategy, and develop new soft advertising products, to expand the channels for cooperation.
With respect to the membership business, Mango TV has overcome the adverse effect of repeated
breaks of COVID-19 on offline membership operations and production of important programs and content,
and attracted 50.4 million active members as of the end of 2021, an increase of 39.5% as compared with
2020. During the reporting period, our revenue from the membership business totaled RMB3.688 billion, an
increase of 13.3% year on year. In view of the evolution of the long video industry and the current pattern of
market competition, Mango TV has gradually enhanced channel cooperation, concentrated its efforts on
increasing the member conversion rate and user penetration rate, while maintaining the established practices
such as accurate marketing and user circle break, tried full-cycle customized operation for variety show
members, such as in “Call Me By Fire”, “Who’s the Murderer” and other major proprietary programs. While
fully upgrading the membership interest matrix, we have adjusted the membership prices since January 2,
2022.
With respect to operator business, during the reporting period, our revenue from the operator business
totaled RMB2.12 billion, an increase of 27.17% year on year. With respect to nation-wide business, we have
entered into in-depth strategy cooperation with Migu Culture, a subsidiary of China Mobile, in big screen
business, 5G innovative business and other areas, enhanced business development in all provinces, and
realized in-depth coverage of content basic package and value-added package. With respect to the business in
16
Mango Excellent Media Co., Ltd. Annual Report 2021
Hunan, we have realized growth of business revenue through “offline promotion + smart recommendation +
business innovation”.
17
Mango Excellent Media Co., Ltd. Annual Report 2021
(4) Optimize organization structure, gather development forces and improve the quality and
efficiency of operation
During the reporting period, in order to improve internal business synergy, and enhance the core
competencies of Mango TV as our main platform, we have optimized our organization structure, by
reorganizing Mango Studios, Mango Entertainment and Mango Fun into subsidiaries of Mango TV, focusing
on production of programs for Monsoon theater, variety show content innovation and location based
entertainment operation respectively. With respect to the artist agency business, management of artist always
insists on passing on the mainstream social values and giving full scope to the central themes, actively
promoting execution and renewal of contracts with key artists, and forming a group of nearly 100 actors,
variety show performers, musicians, hosts and other artists represented by HUA Chenyu, OU Hao, ZHANG
Xincheng, LI Sidani and BAI Jugang under EE-Media, YANG Shuo, WAN Qian and QI Sijun, among others
under Happy Sunshine. With respect to music copyright business, EE-Media and Happy Sunshine have
established a music library composed of nearly 1,700 record, film, TV and variety show music. With respect
to media retail business, Happigo continuously optimizes the cost structure of and exploits key markets for
the big screen TV shopping business. In addition, “Mango Revitalization Cloud Supermarket” has been
upgraded to promote the effective linkage between consolidation of the poverty alleviation outcomes and
rural revitalization.
(5) Develop new business, extend industry chain and cultivate new points of growth
During the reporting period, we concentrated our efforts on accelerating the development of Shopmang
App, our e-commerce platform selling and distributing new fashion home-made goods and content, and
through Shopmang Flower Cultivation Night, Xiaomang New Year’s Shopping Festival and other large
evening parties, successfully realized interaction by users between programs and the App. During the
reporting period, the peak number of daily active users of Shopmang App reached 1.26 million. We have
actively developed offline location based entertainment business, on the basis of “Who’s the Murderer”,
“Great Escape” and other high-quality content, extended our IPs from online to offline, and created M-city, a
wholly new brand. We focus on building offline location based entertainment complex, and establish and
output industrial standards in respect of script creation, copyright protection, DM training, offline entity
operation, etc.
(6) Focus on innovation in content product patterns and promote in-depth integration of culture and
technology
We focus on innovation in content product patterns by using technologies, and actively explore wholly
new approaches of integration of culture and technology. The “Guangmang” cloud production and
broadcasting platform independently developed by us integrates “interview, edition and broadcasting”, and
“Guangmang” ultra HD cloud production and broadcasting technology was named as a “National Typical
Case of Integration of Radio, TV and Media”. We successfully applied 5G and VR production and
broadcasting technologies in the Family Outing Night of “Call Me By Fire”, and created the most
complicated application of new technologies by long video variety show platforms. We continuously follow
AR, VR, XR and other frontier technologies, and have made series of achievements of innovation, including
without limitation virtual host, interactive video platform, IMGO ultra HD vide reparation and augmentation
platform, Internet 4K ultra HD production and broadcasting platform, and 3D video content reality
augmentation system.
2. Revenue and cost
(1) Components of operating revenue
Overall situation of operating revenue
In RMB
2021 2020
Proportio Proportio Y/Y %
n to n to change
Amount Amount
operating operating
revenue revenue
15,355,863,482.0 14,005,534,955.
Total operating revenue 100% 100% 9.64%
7 36
By segment
Mango TV Internet 11,261,249,957.2 9,060,568,867.2
73.33% 64.69% 24.29%
video business 1 7
New media interactive 2,764,980,756.8
entertainment content 1,877,457,854.82 12.23% 19.74% -32.10%
3
production and
18
Mango Excellent Media Co., Ltd. Annual Report 2021
operation
2,104,532,724.4
Content E-business 2,157,213,530.01 14.05% 15.03% 2.50%
6
Other main business 39,485,705.99 0.26% 61,533,468.52 0.44% -35.83%
Revenue from other
20,456,434.04 0.13% 13,919,138.28 0.10% 46.97%
business
By product
Mango TV Internet 11,261,249,957.2 9,060,568,867.2
73.33% 64.69% 24.29%
video business 1 7
New media interactive
entertainment content 2,764,980,756.8
1,877,457,854.82 12.23% 19.74% -32.10%
production and 3
operation
2,104,532,724.4
Content E-business 2,157,213,530.01 14.05% 15.03% 2.50%
6
Other main business 39,485,705.99 0.26% 61,533,468.52 0.44% -35.83%
Revenue from other
20,456,434.04 0.13% 13,919,138.28 0.10% 46.97%
business
By region
4,513,906,434.7
Hunan 4,224,776,693.61 27.51% 32.23% -6.41%
2
11,131,086,788.4 9,491,628,520.6
Outside Hunan 72.49% 67.77% 17.27%
6 4
By sales model
15,355,863,482.0 14,005,534,955.
Sale 100.00% 100.00% 9.64%
7 36
(2) Segments, products, regions or sales models representing more than 10% of
operating revenue or profit
√ Applicable □ N/A
In RMB
Y/Y %
Y/Y %
change Y/Y %
change
Operating Gross in change
Operating cost in
revenue margin operatin in gross
operatin
g margin
g cost
revenue
By segment
Mango TV
11,261,249,957. 6,350,577,826.
Internet video 43.61% 24.29% 18.17% 2.92%
21 34
business
New media
interactive
1, 1,
entertainment 17.09% -32.10% -27.49 -5.26%
877,457,854.82 556,685,395.67
content
production
Content 2,157,213,530.0 1,968,834,667.
8.73% 2.50% 17.45% -11.61%
E-business 1 67
Others 59,942,140.03 29,364,881.14 51.01% -20.56% -11.32% -5.10%
By product
Mango TV
11,261,249,957. 6,350,577,826.
Internet video 43.61% 24.29% 18.17% 2.92%
21 34
business
New media 1,877,457,854.8 1,556,685,395.
interactive 2 67 17.09% -32.10% -27.49% -5.26%
19
Mango Excellent Media Co., Ltd. Annual Report 2021
entertainment
content
production
Content 2,157,213,530.0 1,968,834,667.
8.73% 2.50% 17.45% -11.61%
E-business 1 67
Others 59,942,140.03 29,364,881.14 51.01% -20.56% -11.32% -5.10%
By region
4,224,776,693.6 2,679,793,836.
Hunan 36.57% -6.41% -12.98% 4.13%
1 19
11,131,086,788. 7,225,668,934.
Outside Hunan 35.09% 17.27% 16.91% 0.21%
46 63
By sales model
15,355,863,482. 9,905,462,770.
Sale 35.49% 9.64% 7.31% 1.39%
07 82
In case of any adjustment to the statistic scale for main business data, the main business data of the
most recent reporting period as adjusted according to the statistic scale applied at the end of the current
reporting period:
□ Applicable √ N/A
(3) Whether the Company’s revenue from sale of tangible goods is higher than the
revenue from labor service?
□ Yes √ No
(4) Performance of material sales contracts of the Company as of the end of the
reporting period
□ Applicable √ N/A
(5) Components of operating cost
Classification of segments and products:
In RMB
2021 2020
Proporti
Proportio Y/Y %
Segment Item on to
n to change
Amount operatin Amount
operating
g
revenue
revenue
Mango TV Internet
5,929,892,854.5 4,841,068,825.
Internet video video 59.86% 52.45% 22.49%
1 32
business business
Mango TV
Operator -21.05
Internet video 420,684,971.83 4.25% 532,836,160.11 5.77%
business %
business
New media
Copyright
interactive
and 1,980,661,842.
entertainment 21.45%
production 66
content 1,402,186,406.7 -29.21
costs
production 7 14.16% %
New media
interactive Employee
166,826,921.8
entertainment benefits and 154,498,988.90 1.56% 1.81% -7.39%
6
content others
production
Content Content 1,968,834,667.6 1,676,380,697.
19.88% 18.16% 17.45%
E-business E-business 7 52
Other main Other main
26,844,714.41 0.29%
business business 20,199,308.10 0.20% 24.75%
20
Mango Excellent Media Co., Ltd. Annual Report 2021
Costs of other Costs of
business other 6,269,482.56 0.07%
business 9,165,573.04 0.09% 46.19%
In RMB
2021 2020
Proportio Proportio Y/Y %
Product Item n to n to
Amount Amount change
operating operating
revenue revenue
Mango TV Internet
5,929,892,854.5 4,841,068,825
Internet video video 59.86% 52.45% 22.49%
1 .32
business business
Mango TV
Operator 532,836,160.1 -21.05
Internet video 420,684,971.83 4.25% 5.77%
business 1 %
business
New media
Copyright
interactive
and 1,980,661,842
entertainment 21.45%
production .66
content 1,402,186,406.7 -29.21
costs
production 7 14.16% %
New media
interactive Employee
166,826,921.8
entertainment benefits and 154,498,988.90 1.56% 1.81% -7.39%
6
content others
production
Content Content 1,968,834,667.6 1,676,380,697
19.88% 18.16% 17.45%
E-business E-business 7 .52
Other main Other main
26,844,714.41 0.29%
business business 20,199,308.10 0.20% 24.75%
Costs of other Costs of
business other 6,269,482.56 0.07%
business 9,165,573.04 0.09% 46.19%
Analysis:
None.
(6) Changes in the scope of consolidation during the reporting period
√ Yes □ No
During the reporting period, we established Hainan EE-Media Co., Ltd. and Shanghai Mango Universe
Culture & Entertainment Co., Ltd., deregistered Happigo (Beijing) New Media Technology Co., Ltd.
and Hangzhou Hemei Interactive Entertainment Technology Co., Ltd., transferred 100% shares of
Hunan Happy Money Microfinance Co., Ltd., and acquired 100% shares of Shenzhen Zhonghe Boao
Technology Development Co., Ltd. Refer to “Section X Financial Report – VIII. Changes in the
scope of consolidation”.
(7) Material changes or adjustments in respect of business, products or services of the
Company during the reporting period
□ Applicable √ N/A
(8) Major customers and suppliers
Major customers of the Company:
Aggregate sales revenue from top 5 customers (RMB) 6,081,156,735.70
Proportion of aggregate sales revenue from top 5 customers to annual sales
39.60%
revenue
Proportion of aggregate sales revenue from related parties among top 5
32.17%
customers to annual sales revenue
Particulars of top 5 customers:
21
Mango Excellent Media Co., Ltd. Annual Report 2021
Proportion to annual sales
No. Name of customer Sales revenue (RMB)
revenue
1 Customer 1 3,289,290,336.88 21.42%
2 Customer 2 1,650,532,231.02 10.75%
3 Customer 3 640,648,113.21 4.17%
4 Customer 4 333,268,244.86 2.17%
5 Customer 5 167,417,809.73 1.09%
Total -- 6,081,156,735.70 39.60%
Other information of major customers:
√ Applicable □ N/A
The sales revenue from the largest customer reflects the aggregate sales revenue from our actual
controller HBC and its controlled subsidiaries, and the sales revenue from the second largest customer
reflects the aggregate sales revenue from our affiliate Migu Culture Technology Co., Ltd. and its
controlled subsidiaries.
Major suppliers of the Company:
Aggregate purchase amount from top 5 suppliers (RMB) 1,977,207,514.01
Proportion of aggregate purchase amount from top 5 suppliers to annual
19.96%
purchase cost
Proportion of aggregate purchase amount from related parties among top 5
11.43%
suppliers to annual purchase cost
Particulars of top 5 customers:
Proportion to annual purchase
No. Name of supplier Purchase amount (RMB)
cost
1 Supplier 1 1,132,617,166.53 11.43%
2 Supplier 2 231,132,075.47 2.33%
3 Supplier 3 224,236,501.26 2.26%
4 Supplier 4 209,519,697.66 2.12%
5 Supplier 5 179,702,073.09 1.82%
Total -- 1,977,207,514.01 19.96%
Other information of major suppliers:
√ Applicable □ N/A
The purchase amount from the largest supplier reflects the aggregate purchase amount from our actual
controller HBC and its controlled subsidiaries
3. Expenses
In RMB
Y/Y % Explanation for significant
2021 2020
change changes
Primarily due to an increase in
Selling
2,469,328,212.64 2,164,415,269.87 14.09% business marketing and channel
expenses
development expenses
Primarily due to an increase in
Administrative expenses in connection with
695,934,611.78 629,200,722.73 10.61%
expenses human resources and
depreciation
Financial Primarily due to an increase in
-101,210,337.17 -86,619,854.07 16.84%
expenses interest income
Primarily due to an increase in
R&D expenses 271,991,403.40 184,384,948.72 47.51% the funding for R&D projects
and salaries of R&D personnel
4. R&D expenses
22
Mango Excellent Media Co., Ltd. Annual Report 2021
√ Applicable □ N/A
Expected effect on
Description of
the future
major R&D Purpose Progress Objectives
development of
project
Company
The platform will
act as a core
technology platform
for viewing videos,
Use proprietary be linked with the
technologies to Mango TV video
build edge cloud production system
Construction of having huge media The project will
computing platform,
systems such as improve
Mango TV media convergence resources on the
cloud storage subscribers’ viewing
cloud storage platform, cloud upstream， and with
system, cloud experience on the
and production platform, PC, mobile, Internet
distribution system, platform, reduce the
multi-screen smart audio & video TV and other
cloud P2P system, operating costs of
broadcasting cloud and other broadcasting
cloud transcoding the platform, and
platform systems, and create terminals on the
system and cloud help us maintain our
project a cloud storage and downstream, help
data analysis system core competencies
multi-screen Mango TV realize
has been completed. in the future.
broadcasting storage of huge
platform leading in video resources,
the country. distribution to
subscribers through
nearby nodes and
extremely fast view
and downloading.
“1. To implement
the requirements of
the National Radio
and TV The product fully
Administration, supports signal
build 1:1 backup source reception,
system for signal live broadcast,
The smartly
source reception, broadcast
managed
live transcoding and monitoring, fault
broadcasting and
broadcast routing alert and location
control system is a
with full coverage. and emergency
key project of
response for IPTV
Mango TV for The related 2. To establish in Hunan, and
ensuring secure live infrastructure has standard data provides data
broadcast and been improved; and interfaces, on the analysis and logical
improving image live transcoding, principle of secure display capabilities,
Smartly quality, and is signal source, broadcast and and data system
managed designed to build an monitoring, standard operation support for
broadcasting IP broadcasting and network, data and maintenance, scientific broadcast
and control control platform collection and use the smartly management. The
system using virtual, SND analysis and other managed new distributed
and other basic resources have broadcasting and broadcast and
next-generation been consolidated control system to control model with
technologies under and would be fully improve the security data link logical
the development backed up. performance and display + accurate
strategy of image quality of fault location
integration and Mango TV developed
intelligentization of broadcast system, independently will
radio, TV and and enable it to be the important
media. cope with the tool for improving
requirements for the the stableness of
development of live broadcast of
convergence media Mango TV.
in all respects at
present and in the
future.”
Particulars of R&D personnel:
23
Mango Excellent Media Co., Ltd. Annual Report 2021
2021 2020 Y/Y % change
Number of R&D personnel 595 622 -4.34%
Proportion of R&D personnel to total number of employees 14.79% 13.91% 0.88%
Education background of R&D personnel
Undergraduates 439 458 -4.15%
Masters 100 102 -1.96%
Others 56 62 -9.68%
Ages of R&D personnel - - -
Below 30 155 168 -7.74%
30-40 415 426 -2.58%
Others 25 28 -10.71%
Amount of R&D expenses and proportion of R&D expenses to operating revenue in the past three years:
2021 2020 Y/Y % change
Amount of R&D expenses (RMB) 369,361,905.14 319,282,521.92 280,287,866.02
Proportion of R&D expenses to operating
2.41% 2.28% 2.24%
revenue
Amount of R&D expenses capitalized
97,370,501.74 134,897,573.20 40,988,534.16
(RMB)
Proportion of capitalized R&D expenses
26.36% 42.25% 14.62%
to total R&D expenses
Proportion of R&D expenses capitalized
4.60% 6.82% 3.54%
to the net profit of the current period
Analysis of the cause and effect of significant change in the composition of R&D personnel:
√ Applicable □ N/A
Because Happy Money was excluded from our scope of consolidation, its R&D personnel were no longer
included in the number of R&D personnel in 2021.
Analysis of the cause of significant change in the proportion of R&D expenses to operating revenue
compared with the preceding year:
□ Applicable √ N/A
Analysis of the cause and reasonableness of significant change in the proportion of R&D expenses
capitalized:
□ Applicable √ N/A
5. Cash flows
In RMB
Item 2021 2020 Y/Y % change
Cash provided by operating activities 14,948,148,074.05 13,357,032,896.39 11.91%
Cash used in operating activities 14,386,347,191.68 12,776,062,543.31 12.60%
New cash flows from operating
561,800,882.37 580,970,353.08 -3.30%
activities
Cash provided by investment
5,738,565,482.92 886,489,234.84 547.34%
activities
Cash used in investment activities 8,931,089,507.90 692,459,021.89 1,189.76%
Net cash flows from investment
-3,192,524,024.98 194,030,212.95 -1,745.37%
activities
Cash provided by financing activities 4,566,523,925.07 160,436,700.00 2,746.31%
Cash used in financing activities 339,498,633.27 662,272,824.91 -48.74%
Net cash flows from financing
4,227,025,291.80 -501,836,124.91
activities
24
Mango Excellent Media Co., Ltd. Annual Report 2021
Net increase in cash and cash
1,596,914,430.17 273,387,984.85 484.12%
equivalents
Analysis of the main causes of significant changes in the relevant data:
√ Applicable □ N/A
The cash provided by investing activities increased by 547.34%, cash used in investment activities increased
by 1,189.76%, and new cash flows from investment activities decreased by 1,745.37%, primarily due to use
of offering proceeds as scheduled, and purchase of structured bank deposits with unused offering proceeds.
The cash provided by financing activities increased by 2,746.31%, primarily due to receipt of the offering
proceeds of RMB4.487 billion.
The cash used in financing activities decreased by 48.74%, primarily due to repayment of loans of prior
years in the preceding year, and a decrease in cash used for repaying debts in the current year.
The net cash flows from financing activities in the current period was RMB 4,227,025,300, as compared with
- RMB 501,836,100 in the preceding period, primarily due to receipt of the offering proceeds.
The net increase in cash and cash equivalents increased by 484.12%, primarily due to receipt of the offering
proceeds of RMB4.487 billion and cash provided by operating activities.
Analysis of the significant difference between net cash flows from operating activities during the reporting
period and net profit in current year:
√ Applicable □ N/A
Primarily due to our strategic investment in copyright pool and Shopmang e-commerce during the reporting
period.
V. Analysis of non-main business
√ Applicable □ N/A
In RMB
Proportion
Whether or not
Amount to total Main source
sustainable
profit
Income on bank wealth
Investment income 37,229,498.93 1.76% No
management products
Impairment loss on
Impairment loss on assets -112,008,261.59 -5.30% inventories and No
accounts receivable
Income from rights
Non-operating revenue 21,850,496.77 1.03% No
protection actions
Expenses in connection
with indemnity,
Non-operating expenses 43,300,269.96 2.05% No
epidemics and
donations
VI. Analysis of assets and liabilities
1. Material changes in the components of assets
In RMB
End of 2021 Beginning of 2021
Reason of
Proportion Proportion Y/Y %
significant
Amount to total Amount to total change
change
assets assets
Primarily
due to
receipt of the
Monetary private
6,974,465,151.81 26.71% 5,336,319,786.70 27.39% -0.68%
capital offering
proceeds of
RMB4.487
billion in the
25
Mango Excellent Media Co., Ltd. Annual Report 2021
reporting
period
Accounts
3,113,742,914.88 11.93% 2,976,696,672.95 15.28% -3.35%
receivable
Contract
903,053,743.61 3.46% 817,451,396.56 4.20% -0.74%
assets
Inventories 1,689,546,700.79 6.47% 1,660,324,608.09 8.52% -2.05%
Long-term
equity 23,882,517.37 0.09% 22,882,969.51 0.12% -0.03%
investment
Fixed assets 184,450,336.98 0.71% 186,924,296.25 0.96% -0.25%
Right of use
210,304,495.42 0.81% 217,783,996.12 1.12% -0.31%
assets
Short-term
39,786,903.37 0.15% 39,789,110.68 0.20% -0.05%
borrowings
Contract
1,327,294,063.85 5.08% 1,330,475,023.10 6.83% -1.75%
liabilities
Lease
169,643,622.50 0.65% 168,778,053.34 0.87% -0.22%
liabilities
Analysis of high proportion of overseas assets:
□ Applicable √ N/A
2. Assets and liabilities at fair value
□ Applicable √ N/A
In RMB
Gain Aggre
Impair
or gate
ment
loss change Amount
loss Amount
on s in acquired in
Beginning recogni sold in the Other Ending
Item chan fair the
balance zed in reporting changes balance
ges value reporting
the period
in record period
current
fair ed in
period
value equity
Financial assets
1.
Financi
al assets
held for
trading
8,736,000,0 5,326,000,0 3,410,000,0
(excludi
00.00 00.00 00.00
ng
derivati
ve
financia
l assets)
Subtota
l of 8,736,000,0 5,326,000,0 3,410,000,0
financia 00.00 00.00 00.00
l assets
Receiva
bles 164,410,0 26,610,0 137,800,00
financin 00.00 00.00 0.00
g
Total 164,410,0 8,736,000,0 5,326,000,0 26,610,0 3,547,800,0
00.00 00.00 00.00 00.00 00.00
Financi 0.00 0.00
26
Mango Excellent Media Co., Ltd. Annual Report 2021
al
liabiliti
es
Other changes:
Other changes of receivables financing mainly refer to changes of endorsement of acceptance bill or maturity
acceptance.
Whether there’s any material change in the measurement properties of main assets of the Company during
the reporting period?
□ Yes √ No
3. Encumbrances on assets as of the end of the reporting period
As of the end of the reporting period, the total amount of restricted assets was RMB 273,835,200, including
capitals of RMB 61,822,000 frozen in litigations, third-party platform deposit RMB 1,220,200, and POS
deposit RMB5,000; endorsed commercial bill undue RMB 210,748,000.
VII. Analysis of investments
1. Overall situation
√ Applicable □ N/A
Amount of investment in 2021 Amount of investment in 2020
Y/Y % change
(RMB) (RMB)
43,523,517.70 60,000,000.00 -27.46%
2. Major equity investments acquired during the reporting period
□ Applicable √ N/A
3. Major non-equity investment that have not yet been completed in the reporting period
□ Applicable √ N/A
4. Financial assets at fair value
√ Applicable □ N/A
In RMB
Gain Aggre
or gate
loss change Amount
Amount Aggregat
Type Initial cost on s in acquired in Sourc
sold in the e Ending
of of chan fair the e of
reporting investme balance
assets investment ges value reporting funds
period nt income
in record period
fair ed in
value equity
Purch
ase of
structu
red
bank
Financi deposi
al 8,736,000,0 8,736,000,0 5,326,000,0 34,265,6 3,410,000,0 ts with
derivat 00.00 00.00 00.00 17.23 00.00 owned
ives funds
and
offerin
g
procee
ds
8,736,000,0 8,736,000,0 5,326,000,0 34,265,6 3,410,000,0 -
Total 0.00 0.00
00.00 00.00 00.00 17.23 00.00
5. Use of offering proceeds
27
Mango Excellent Media Co., Ltd. Annual Report 2021
√ Applicable □ N/A
(1) Description of use of offering proceeds
√ Applicable □ N/A
In RMB0’000
Total
Total
amount of Aggregate
Percentage amount of
Total amount offering amount of
Aggregate of offering Purpose and offering
of offering proceeds the offering Total amount
Total amount of proceeds the whereabouts proceeds
Year of Method of proceeds purpose of proceeds the of unused
offering offering purpose of of unused that has
offering offering used in the which was purpose of offering
proceeds proceeds which has offering remained
reporting changed in which has proceeds
already used been proceeds unused for
period the been
changed more than
reporting changed
two years
period
Deposited in
Private the special
2019 share 198,270.07 4,176.44 98,827.45 0 0 0.00% 99,442.62 account of 99,442.62
offering offering
proceeds
Deposited in
the special
Share account of
offering to offering
2021 448,579.21 108,727.65 108,727.65 0 0 0.00% 339,851.56 0
specific proceeds, and
persons purchase cash
management
products
Total -- 646,849.28 112,904.09 207,555.1 0 0 0.00% 439,294.18 -- 99,442.62
Description of use of offering proceeds
During the reporting period, the total amount of offering proceeds used by us was RMB1,129,040,900. As of December 31, 2021 during the reporting period, the aggregate
28
Mango Excellent Media Co., Ltd. Annual Report 2021
amount of offering proceeds used by us was RMB2,075,551,000. The balance of the special account of offering proceeds was RMB2,224,720,100, including
RMB2,132,941,800 of principal and RMB91,778,300 of interest income. We have used RMB2,260,000,000 of unused offering proceeds to purchase cash management
products.
(2) Committed fund-raising investment projects
√ Applicable □ N/A
In RMB0’000
Whether Whether
Aggregate Progress of Date that Whether
the there’s any
amount investment the Aggregate the project
project Total Total Amount Income significant
Committed investment already as of the project is income as of has
has been committed investment invested in earned in the change in
project and use of invested as of end of the ready for the end of the produced
changed investment amount as the reporting reporting the
over-raised funds the end of the reporting its reporting the
or amount adjusted (1) period period feasibility
reporting period (3) intended period desired
partially of the
period (2) =(2)/(1) use result
changed project
Committed investment project
1. Mango TV
copyright pool No 148,674 148,674 2,600 86,150 57.95% -4,723.48 17,115.99 N/A No
expansion project
2. Mango TV cloud
storage and
No 49,558 49,558 1,576.44 12,677.45Note1 25.58% Note2
N/A No
multi-screen broadcast
platform project
1. Content resource
No 398,587.78 398,587.78 108,727.65 108,727.65 27.28% 108,853.3 108,853.3 N/A No
pool expansion project
2. Mango TV smart
audio & video media
No 49,991.43 49,991.43 0 0 0.00% Note3
N/A No
service platform
project
Subtotal -- 646,811.21 646,811.21 112,904.09 207,555.1 -- -- 104,129.82 125,969.29 -- --
Use of over-raised funds
29
Mango Excellent Media Co., Ltd. Annual Report 2021
None
Total -- 646,811.21 646,811.21 112,904.09 207,555.1 -- -- 104,129.82 125,969.29 -- --
Mango TV cloud storage and multi-screen broadcast platform project: The project was planned for in 2017 and implemented in 2019 after receipt of the relevant
Failure to meet the offering proceeds. During the procedure of implementation, the market and technical environment of the industry also changed to certain degree within these two
scheduled progress and years. Therefore, after receipt of the relevant offering proceeds, we adjusted the fund use plan by extending the fund use period to 2021, resulting in the difference
produce the desired between the fund use progress and original use plan in the reporting period. The fund use plan in respect of Mango TV cloud storage and multi-screen broadcast
result and reason platform project was adjusted pursuant to the Proposal for Adjusting the Fund Use Plan in Respect of Certain Fund-raising Investment Project adopted by the 29th
thereof (please session of the 3rd Board of Directors of the Company on April 23, 2020, and further adjusted pursuant to the Proposal for Adjusting the Fund Use Plan in Respect
describe on a project of Certain Fund-raising Investment Project adopted by the 35th session of the 3rd Board of Directors on January 26, 2021.
by project basis)
Reason of significant
change in the None
feasibility of the
project
Amount and use of
over-raised funds and N/A
progress of use thereof
Change in the place of
the fund-raising N/A
investment project
Applicable
Adjustment of the
Occurred in the reporting period.
method of
implementation of the
fund-raising Mango TV copyright pool expansion project: As of December 31, 2020, we purchased and released on Hunan TV 5 key TV series as scheduled. The progress of
investment project investment and development meet expectations. The amount of actual investment being lower than the planned amount of investment was primarily due to changes
in industry policies, as a result of which the prices for content copyright have returned to the reasonable level, so the price for TV series per part actually paid by us
was lower than the estimated amount. On November 28, 2021 and December 21, 2021, the Company held the 7th session of the 4th Board of Directors and the 2nd
extraordinary shareholders’ meeting respectively, considering and approving The Proposal for Adjusting the Method of Implementation and Fund Use Plan in
Respect of Certain Fund-raising Investment Project, pursuant to which the method of implementation and fund use plan in respect of the Mango TV copyright pool
30
Mango Excellent Media Co., Ltd. Annual Report 2021
expansion project were adjusted, and remaining offering proceeds were used to purchase exclusive Internet copyright of teleplays.
Applicable
On September 23, 2021, the 5th session of the 4th Board of Directors and the 4th session of the 4th Board of Supervisors considered and adopted the Proposal for
Replacing the Funds Pre-invested in the Fund-Raising Investment Project and Self-raised Funds Used to Pay Part of the Offering Costs with the Offering
Proceeds, approving the replacement of the funds pre-invested in the investment project in the amount of RMB703,945,533.67 and self-raised funds used to pay
Funds pre-invested in part of the offering costs in the amount of RMB475,471.70 (exclusive of tax) with the offering proceeds, totaling RMB704,421,025.37. The independent directors
the investment project and the Board of Supervisors of the Company approved such proposal. The replacement has been completed as of December 31, 2021.
and replacement
On September 23, 2021, the 5th session of the 4th Board of Directors and the 4th session of the 4th Board of Supervisors considered and adopted the Proposal
thereof
Regarding Payment by the Wholly-owned Subsidiary of Funds Invested in the Fund-Raising Investment Project with Banker’s Acceptance Bills and Replacement of
the Same with the Offering Proceeds, approving the payment by Happy Sunshine, our wholly-owned subsidiary, of amounts in connection with the fund-raising
investment project with banker’s acceptance bills (including issuance and endorsement of banker’s acceptance bills, the same below) during the period of fund
raising for such investment project through share offering to specific persons, and replacement of the same with the offering proceeds by transferring the amount
actually paid from the special account of offering proceeds to the account of owned funds of the Company. The independent directors and the Board of Supervisors
of the Company approved such proposal.
Temporary
replenishment of
working capital with N/A
the unused offering
proceeds
Amount of unused
offering proceeds and N/A
reason thereof
Purpose and During the reporting period, we used RMB2,260,000,000 of unused offering proceeds to purchase cash management products, and deposited the balance of the
whereabouts of unused unused offering proceeds in the special account of offering proceeds.
offering proceeds
Problems and other
matters existing in the None
use and disclose of
offering proceeds
Notes: 1. The planning for Mango TV cloud storage and multi-screen broadcast platform project was completed in 2017, and its implementation was commenced after raising
supporting funds in 2019; the project construction was almost completed in 2021. On April 21, 2022, the 8th session of the 4th Board of Directors and the 7th session of the 4th Board
of Supervisors considered and adopted Proposal on Termination of Cloud Storage and Multi-Screen Broadcast Platform Project and Applying Saved Offering Proceeding to Eternally
31
Mango Excellent Media Co., Ltd. Annual Report 2021
Supplement Working Capitals, proposing to apply offering proceeds saved from this project RMB 388,899,100 (including interest incomes, and final amount is subject to balance of
interest-bearing bank account at the date of fund transfer) to eternally supplement working capitals; independent directors expressed independent opinions of agreeing with it. This
matter shall be submitted to the general meeting of the Company for consideration.
2. Mango TV cloud storage and multi-screen broadcast platform project: aiming at fully improving users’ experience of watching across the platform, no economic benefits will be
yielded directly, so it is impossible to calculate the benefits of such project separately.
3. Mango TV smart audio & video media service platform project: project initiation has been completed in the first quarter of 2022, and investment continues. This project aims at
improving overall platform-level solutions in ultra HD video, interactive video and re-consumable video in future, accelerating integration of Mango TV in aspects of resources,
technology, services, business and flow, no economic benefits will be yielded directly, so it is impossible to calculate the benefits of such project separately.
(3) Changes in the fund-raising investment projects
□ Applicable √ N/A
There has been no change in the fund-raising investment projects during the reporting period.
VIII. Sale of material assets and equities
1. Sale of material assets
□ Applicable √ N/A
No material asset has been sold during the reporting period.
2. Sale of material equities
√ Applicable □ N/A
Net profit
Whether the
contributed by
Ratio of the transaction
such equities
net profit has been
to the Listed Whether
contributed completed as
Company from Whether or such
Transaction Effect of the by the sale of Affiliation scheduled,
Equities Date of the beginning Pricing not a equities Date of Disclosure
Counterparty price sale on the equities to with the and if not,
sold transaction date of the principle related-party have been disclosure reference
(RMB0’000) Company the Listed counterparty the reason
reporting transaction fully
Company to and the
report to the transferred
its total net actions taken
date of
profit by the
transaction
Company
(RMB0’000)
Mango 100% May 31, To improve the Appraised June 25, Announcement on
30,424.97 77.07 0.04% Yes Parent Yes Yes
Media Co., shares 2021 efficiency of price 2021 the Completion of
32
Mango Excellent Media Co., Ltd. Annual Report 2021
Ltd. of resource Transfer of 100%
Happy allocation, and Shares of the
Money enable us to Wholly Owned
focus on our Subsidiary
main business disclosed on
www.cninfo.com.cn
IX. Analysis of major subsidiaries and associates
√ Applicable □ N/A
Major subsidiaries and associates representing more than 10% of the net profit of the Company:
In RMB
Company Type of
Main business Registered capital Total assets Net assets Operating revenue Operating profit Net profit
name company
Happy Subsidiary Internet video business, operator
Sunshine business and content operation 242,470,013.00 23,570,984,552.88 15,055,215,350.00 12,950,476,639.62 2,104,527,787.90 2,082,070,694.11
business
Happigo Subsidiary Media retail 401,000,000.00 1,034,734,591.59 581,665,920.92 1,923,249,732.02 18,853,328.73 19,838,645.46
EE-Media Subsidiary Artist agency business, program,
film and TV drama production 90,000,000.00 1,145,327,685.12 491,568,431.98 534,369,650.50 73,599,373.37 73,617,020.16
business and copyright business
33
Mango Excellent Media Co., Ltd. Annual Report 2021
Subsidiaries acquired or disposed of during the reporting period:
√ Applicable □ N/A
Method of acquisition or
Company name Effect on overall production, operation and results
disposal
The operating revenue of Happy Money was RMB28.3559
million and the gain or loss on disposal was RMB770,700
Happy Money Share transfer
on a consolidated basis, so this share transfer has little effect
on our production, operation and results.
Particulars of major subsidiaries and associates:
During the reporting period, Happy Sunshine, the operating entity of our main platform Mango TV, maintained
growth of business, and its operating revenue increased by 14.93%. During the reporting period, the net offering
proceeds was RMB4.487 billion, and the total assets of Happy Sunshine increased by 40% year on year, reflecting
further improvement of our asset quality.
X. Structured entities controlled by the Company
□ Applicable √ N/A
XI. Prospects for future development of the Company
(I) Prospects for future development
The year 2022 is a crucial opportune year for Mango Excellent Media to pursue the high-quality
development. Keeping in mind the mission of the party media and assuming the social responsibility as the
listed company, the board of directors and the management of the Company made real efforts and innovation,
maintained the main position as the main force and strived to optimize and strengthen the mainstream new
media group, so as to celebrate the 20th National Congress of the CPC with practical achievements. Below is
a brief description of our main tasks:
1. Keep in mind the mission of the party media and promote mainstream value communication
By upholding the leadership of the Party with utter loyalty, the Company continues to enhance its
mainstream value guidance through content innovation and upgrading. In 2022, the Company will take
a higher political position and give full play to its advantages as the integrated media to advocate the
20th National Congress of the CPC with the greatest investment, the best creativity and the most
enthusiasm, and promote Xi Jinping’s socialist ideology with China’s characteristics in the new era
around the main theme of the 20th National Congress of the CPC. To this end, the Company will plan
the theme work of “New Generation”, and release more than 20 documentary films such as These Ten
Years and Daughter of the Party 2 and some teleplays such as China’s Long Course of History and
Hutong, presenting the magnificent picture of the new journey in the new era with small points and big
picture. Meanwhile, the Company will sing the Chinese voice out loud in international communication
in the new era. We will strengthen foreign communication by optimizing Mango TV’s international
APP and striving to carry out in-depth cooperation with countries along the Belt and Road within the
year, and expand the overseas user base, so as to build a benchmark platform for international
communication.
2. Leverage on the advantages of two platforms to pursue innovative, integrated and in-depth
development of media
The Company proactively implements the strategy of the Party Central Committee on accelerating
media’s integrated development and utilizes the advantages of the two platform of Mango ecosystem to
promote the integrated and in-depth development of media with innovations in mechanism, paradigm
and content. In 2022, in compliance with the regulatory requirements for listed companies, the
Company will further develop the joint mechanism of Hunan Satellite TV and Mango TV platforms for
content collection and broadcasting to realize the in-depth content integration from planning, operation
to management, consolidate the upgrade from copyright-based to talent-based, and establish a new
benchmark for the integrated development of media. On this basis, we will also explore more paths and
methods for in-depth integration, and realize the self-evolution and iteration of the Mango integrated
development model.
3. Insist on innovation and lead content upgrade in the industry
Currently, the changing creative themes of the content sector bring new opportunities to the long video
industry. The Company will cater to the trend of content innovation and upgrading, leverage on
Mango’s talents and ecosystem strength, adhere to the “people-centered” creation philosophy, insist on
self-breakthrough, catch up with the times and long-term planning, so as to pursue long-term content
innovation and upgrading and lead the content innovation and upgrading of the industry. In 2022, the
Company will make efforts in both film and television and variety shows for content innovation and
34
Mango Excellent Media Co., Ltd. Annual Report 2021
upgrading. In terms of film and television, the Company will focus on the “Mango Monsoon” theater,
set higher standards and mobilize wider collaboration to sustainably produce high-quality products that
empathize with the times and boast refreshed visual experience. In terms of variety shows, the
Company will increase innovation and research and development efforts and strive to launch more than
40% of innovative programs, so as to further consolidate its leading position in the variety shows
industry.
4. Increase strategic investment to promote the iteration and upgrade of emerging businesses
In 2022, the Company will increase strategic resources to promote stable development of emerging
businesses. Xiaomang E-commerce will continue to strengthen its core positioning as a content
e-commerce platform for new trendy domestic products. Taking advantage of its high-quality content
IP resources on the two platforms within Mango ecosystem, it will iterate and upgrade the “video +
content + e-commerce” model through IP resources operation to empower new trendy domestic
products. Meanwhile, we will introduce strategic shareholders to push synergy between Xiaomang
E-commerce and each business sector of the overall Mango ecosphere, and promote the faster and
better development of Xiaomang E-commerce. The live entertainment business will expedite its
transformation from setting a benchmark to expanding new stores.
5. Consolidate the middle platform matrix and explore the evolutionary transformation of technology
content
In 2022, the Company will further improve and consolidate the middle platform matrix in three aspects
to further enhance the effectiveness of resource integration and facilitate our production and operation.
Firstly, we will further upgrade our content middle platform to implement more innovative projects and
stimulate internal content creativity. Secondly, we will strengthen the risk control and operation middle
platforms to maximize resource allocation. We will improve large operation system to cultivate
strategic operation talents, so as to utilize the aggregation capabilities to maximize the content value.
Thirdly, in line with the trend of digital intelligence in the content industry, we will empower our
business development with technology middle platform to promote symbiosis between culture and
technology; based on 5G key lab established under authorization of The State Administration of Radio
Film and Television, promote R&D and application of NFT, digital human production and virtual
content production & broadcasting technology, and explore metaverse-oriented 5G+ media product
form, technology application and business model innovation.
6. Focus on team building to stimulate the innovative vitality of young talents
The high threshold long video content innovation is driven by talents essentially. Talent is the most
important resource and a company’s development cannot leave talents. The Company will further
optimize the talent-based innovation mechanism to attract, develop, retain and utilize talents. We will
further solidify the “Young Talent Plan”, promote the “Qingmang Internship Program” and expand the
“Mango Youth Talk”. We will also focus on team building and invest in human capital to further
consolidate our core competitiveness and stimulate the innovative vitality of young talents.
7. Improve corporate governance and promote high-quality development of listed companies
In 2022, the Company will continue to implement the relevant requirements of the Securities and
Futures Commission to carry out special actions on the governance of listed companies, and ensure the
quality development of the Company through multi-level and multi-dimensional development of
corporate governance capacity. Firstly, based on the self-examination and self-correction in the
previous year, we will further strengthen the institutionalization of the corporate governance system
and upgrade the corporate governance capability and internal control to a higher level. Secondly, with a
focus on high-quality information disclosure, we will further improve the operation of the mechanism
of general meeting of shareholders, board of directors and board of supervisors of the Company, and
enhance the ability of directors, supervisors and senior executives to perform their duties diligently, so
as to build a long-term mechanism for the standardized operation of the Company. Lastly, we will
define the main responsibility of the “key minority”, promote the Company to lead innovation while
ensuring standardized operation, continuously improve the intrinsic development quality of listed
companies and create higher corporate value, thus effectively rewarding investors.
8. Practice the concept of “protect the investment” and strengthen the protection mechanism for minority
shareholders
As the cornerstone of the capital market, it’s the battlefield for investor protection in listed companies.
The Company is obliged to practice the concept of “protect the investment” and protect minority
investors. In 2022, the Company will further strengthen investor protection by enhancing the relevance
and effectiveness of information disclosure based on investor demands, to fully protect investors’ right
to know; establish a sound communication mechanism between the board of directors and investors
and improve the channels and ways for institutional investors to participate in corporate governance;
and take the initiative to understand the demands of minority investors and continuously optimize the
investor return mechanism. Meanwhile, the Company will leverage on its advantages as a new media
35
Mango Excellent Media Co., Ltd. Annual Report 2021
platform and rely on the Mango New Media Investor Education Base to further strengthen the
education for minority investors through developing investor-friendly and high-quality investment
education programs, in a bid to further improve the operation of the investor education base.
(II) Potential risks and countermeasures
1. Risk of macroeconomic fluctuations
The cultural and media industry is closely related to macro-economy. Macroeconomic fluctuations will
increase uncertainties in our operation: first, changes in macroeconomic situation will affect the
budgets of our business customers, which could in turn result in great fluctuations in our B2B business,
for example, during the recession of macro-economy, business customers may reduce their advertising
budgets, which could have an adverse effect on our advertising business; second, macroeconomic
fluctuations will affect the revenue level and structure of our end customers and in turn affect consumer
confidence and consumer preferences. Therefore, we will give full play to the advantages of Mango
system with the joint action of double platforms and entire industry chain, through content innovation
and upgrading, increase the percentage of hot variety shows, films and TV dramas, attract more end
customers, strive to improve platform brands, and provide advertisers with high-quality, effective,
customized and integrated services, to effectively cope with the risk of macroeconomic fluctuations.
2. Policy and regulatory risks
The whole business process of the cultural and media industry in which we operate is subject to
policies and regulations. The changes in industry regulatory policies may bring uncertainties for our
business and operation. We will produce content in strict accordance with the applicable industry
regulatory and policy requirements, and establish sound internal quality management and control
mechanisms, in order to avoid risks associated with policies and regulations. As a mainstream new
media, we will insist on our attributes as a media, reject the idea of traffic first, focus on the production
of high-quality content, assume the responsibility to guide mainstream social values, and embrace the
new development opportunities in the current policy environment.
3. Risk of changes in industry competition patterns
The video industry enters the era of competition for existing users, and witnesses changes in market
recognition, development pattern and underlying logics. The traffic-oriented expansion of the Internet
operations is drawing to an end, and the number of subscribers and paid members of some video
platforms has stopped increasing. In the context of changes in industry pattern, as a mainstream new
media, we always stick to the development strategy of focusing on high-level long videos, accurately
catch the trends of the themes of creation in the field of long videos, fulfill the values guiding role of
media, emphasize on the essence of content creation, and make breakthroughs in the context of
changes in industry pattern through content innovation and upgrading.
4. Risk of business qualifications
Certain businesses of us are subject to special business qualifications. If we are unable to promptly
renew or obtain new business qualifications upon expiration of the relevant existing business
qualifications or to comply with the updated regulatory requirements, our business development may
be adversely affected. We will enhance business qualification management and actively communicate
with the competent business qualifications authorities, to promptly renew business qualifications upon
expiration thereof.
5. Risk of film and TV drama production
(1) Risk of failure of films and TV dramas to pass the relevant review. After completion of
production, a TV drama must pass the review by and obtain a TV Drama Release Permit from the
National Radio and TV Administration or the relevant provincial office. A film or TV drama
produced by us may fail to pass the filing procedures and obtain a production permit due to any
reason attributable to the artists appearing therein or otherwise; and after completion of
production, may fail to obtain a release permit, or to be broadcast after obtaining a release permit,
due to its theme or otherwise, which could affect our operating results. We will produce films and
TV dramas in strict accordance with the applicable policies of the country and review process of
the competent authorities, and ensure that both social and economic benefits are taken into
account in our planning for the production of films and TV dramas.
(2) Risk of high uncertainties of return on investment in films and TV dramas. Films and TV dramas
are cultural products, the reception of which by the audiences is affected by preferences, life
experience, public opinions and other factors, and their audience rating after being broadcast is
greatly uncertain. The investment in films and TV dramas has the inherent characteristics of huge
amount of single investment, long period of return on investment, direct linkage between revenue
and box office receipts or audience rating, and non-predictability of market reaction, among
others, so the return on investment is greatly uncertain. We have established scientific
pre-authorization and authorization policies, and set up special review departments, to reduce the
36
Mango Excellent Media Co., Ltd. Annual Report 2021
risks of investment in films and TV dramas.
6. Risk of technology upgrading
Along with the maturity and application of 5G, cloud computing, AI, AR/VR and other technologies,
new business patterns and business models may emerge and bring about wholly new cultural and
entertainment experience to users. The commercial remodeling brought about by technology upgrading
may have an adverse effect on our operation. We have established the innovation research institute, to
enhance researches on new technologies, new models and future trends of the industry, make
judgments and arrangements in advance, and cope with risks of technology upgrading in an unhurried
manner.
7. Risk of outflow of talents
The new media business, film and TV drama production, and artist agency business conducted by us
have high requirements for the professional levels of practitioners, so experienced professionals are of
great importance to our business development, and outflow of core personnel could affect the conduct
of our business. In addition, if we fail to continuously recruit outstanding talents, our business
development may be adversely affected. We will build an ecosystem suitable for talents to give full
play to their abilities, and continuously improve the incentive mechanisms that are competitive on the
market, to retain and attract talents, arouse the enthusiasm and creativity of core personnel, and
promote our business development.
8. Risk of infringement on intellectual property rights
Due to the complexity of the production of films, TV dramas and audio & video products, diversified
ways to use the works, rapid development of Internet application and complexity of copyright
protection, the copyright purchased by us may have defects and infringe on the interests of legal right
holders, or the licenses purchased by us may be unable to satisfy the requirements of new businesses,
resulting in infringement damages payable by us. In addition, there may be infringing and pirating
activities on the market in respect of films, TV dramas and audio & video products in which we have
exclusive rights, which could prejudice our legitimate rights and interests. Therefore, we have
established copyright protection policy and copyright purchase policy, enhanced efforts to safeguard
our intellectual property rights, and in particular, appoint special personnel and professional institutions
to monitor copyright infringement activities over the Internet in real time and take actions to safeguard
our legitimate rights and interests.
XII. Investigation, research, communication, interview and other activities
during the reporting period
√ Applicable □ N/A
Main topic
of Particulars of the
Method of Type of discussion investigation and
Date Place Guests
communication guests and research activity
information available at
provided
April Meeting room On-site Institution Refer to Our Refer to our
27, of the investigation s the business Record of Investor
2021 Company and research Record of situations Relations Activities
Investor and future disclosed on
Relations developmen www.cninfo.com.c
Activities t strategies n
of Mango and
Excellent prospects
Media for
Co., Ltd. industrial
( 2021-01 developmen
) t
Augus Teleconferenc Communicatio Institution Refer to Our Refer to our
t 18, e n by telephone s the business Record of Investor
2021 Record of situations Relations Activities
Investor and future disclosed on
Relations developmen www.cninfo.com.c
Activities t strategies n
of Mango and
Excellent prospects
Media for
37
Mango Excellent Media Co., Ltd. Annual Report 2021
Co., Ltd. industrial
(2021-02) developmen
t
38
Mango Excellent Media Co., Ltd. Annual Report 2021
Section IV Corporate Governance
I. Overview of our corporate governance
During the reporting period, we have continuously improved our corporate governance structure, internal
management and control policies, intensively carried out corporate governance activities, promoted operational
compliance and continuously increased our corporate governance level in strict accordance with the requirements
of the Company Law, the Securities Law, the Code of Corporate Governance for Listed Companies, the Rules
Governing the Listing of Stocks on the ChiNext Board of the Shenzhen Stock Exchange, and other applicable laws,
regulations and normative documents. During the reporting period, we amended our Articles of Association, the
Rules of Procedure of the Board of Directors, the Rules of Procedure of the Board of Supervisors and other
relevant policies and documents, to provide stronger institutional guarantee for our operational compliance. As of
the end of the reporting period, our corporate governance complies with the applicable laws, administrative
regulations and the provisions of the CSRC regarding corporate governance of the listed companies.
1. Shareholders and shareholders’ meeting
We convene and hold shareholders’ meetings in strict accordance with our Articles of Association, the Rules
of Procedure of the Shareholders’ Meeting and other relevant provisions and requirements, and treat all
shareholders fairly. We permit investors to elect to vote in person or on line at our shareholders’ meetings, so
as to enable minority investors to fully exercise their voting rights. In considering material matters that affect
the interests of minority investors, the votes cast by them are counted separately and disclosed on the
relevant announcements on the resolutions of our shareholders’ meeting.
2. Relationship with controlling shareholder
Our controlling shareholder is strict with itself and has not directly or indirectly interfered with our
decision-making and business activities without the authorization of the shareholders’ meeting. We conduct
business and operate independently, and are independent of our controlling shareholder in business,
personnel, assets, organization and finance, and each of our Board of Directors, Board of Supervisors and
internal bodies operates independently.
3. Directors and Board of Directors
Our Board of Directors has nine directors, including three independent directors. The number of members
and composition of our Board of Directors comply with the requirements of the applicable laws and
regulations and our Articles of Association. The members of our Board of Directors perform their duties in
good faith and diligently in accordance with our Articles of Association and the Rules of Procedure of the
Board of Directors, actively participate in the related training, and are familiar with the applicable laws and
regulations. Our Board of Directors convenes and holds meetings in accordance with the applicable
procedures, keeps true, accurate and complete meeting minutes, securely maintain such meeting minutes, and
disclose its resolutions in a timely manner.
4. Supervisors and Board of Supervisors
Our Board of Supervisors has three supervisors, including one employee supervisor. The number of members
and composition of our Board of Supervisors comply with the requirements of the applicable laws and
regulations. During the reporting period, our supervisors seriously performed their duties, and actively
supervised our material matters, related-party transactions, insiders, internal controls and financial condition
and performance of duties by our directors and executives in compliance with the applicable laws and
regulations, pursuant to the Rules of Procedure of the Board of Supervisors.
5. Establishment and implementation of internal audit policy
Our Board of Directors has set up the Audit Committee, responsible for communications, supervision,
meeting organization and examinations in respect of internal and external audits. The Audit Department
under the Compensation and Appraisal Committee is responsible for handling day-to-day affairs, and
examination and supervision of the establishment and implementation of internal controls, truthfulness and
completeness of financial information of the Company.
6. Performance appraisal and incentive and restraint mechanisms
Our Board of Directors has set up the Compensation and Appraisal Committee, responsible for the
establishment of compensation policies, determination of compensation plans, and performance appraisal of
executives. We have the performance appraisal and incentive system in place, link the revenue of operators
with our operating results, and require that the appointment of executives must be open and transparent and
comply with the applicable laws and regulations.
7. Information disclosure and transparency
We truthfully, accurately, timely, fairly and completely disclose the relevant information in strict accordance
with the applicable laws and regulations, the Information Disclosure Policy and the Investor Relations
Management Policy, designate our Board Secretary to be responsible for making information disclosures,
39
Mango Excellent Media Co., Ltd. Annual Report 2021
coordinating our relations with investors, receiving visiting shareholders, and promptly replying inquiries of
investors through the investors interaction platform, telephone and other channels, and
http://www.cninfo.com.cn, the China Securities Journal, the Shanghai Securities News, the Securities Times
and the Securities Daily as the websites and newspapers for us to disclose information, and truthfully,
accurately, timely, fairly and completely disclose the relevant information in strict accordance with the
applicable laws and regulations and the Information Disclosure Policy, in order to ensure that all
shareholders have equal opportunities to access the information about us.
8. Stakeholders
We fully respect the legitimate rights and interests of stakeholders, and strive to coordinate and balance the
interests of shareholders, employees, partners, the society and other stakeholders, and jointly promote our
sustained and steady development.
Is there any significant difference between the actual circumstance of corporate governance of the Company and
the applicable laws, administrative regulations and the provisions of the CSRC regarding corporate governance of
the listed companies?
□ Yes √ No
There isn’t any significant difference between the actual circumstance of our corporate governance and the
applicable laws, administrative regulations and the provisions of the CSRC regarding corporate governance of the
listed companies.
II. The Company’s independence of its controlling shareholder and actual
controller in assets, personnel, finance, organization and operation
We are independent of our controlling shareholder and actual controller in operation, personnel, assets,
organization and finance. None of our controlling shareholder, actual controller or their affiliates has illegal
occupied our funds or requested us to provide any guarantee in violation of the applicable laws and regulations.
1. Business: We are an independent corporate entity, and conduct business and operate independently.
2. Personnel: We have an independent human resources department, and complete human resources
management policies in place. Our General Manager, Deputy General Managers, CFO, Board Secretary and
other executives receive remunerations from the Listed Company during their terms of office.
3. Segregation of assets: Our assets are complete and free from any encumbrance, and we have independent
purchasing, production and sales systems and supporting facilities.
4. Organization: We have set up internal bodies that are suitable for our development requirements and operate
independently, and our functional departments are independent of our controlling shareholder in their
operation.
5. Finance: We have an independent finance department, and have established independent financial and
accounting system and financial management policies, and opened separate bank accounts, and paid taxes
separately.
III. Horizontal competition
□ Applicable √ N/A
IV. Annual and extraordinary shareholders’ meetings held during the reporting
period
1. Shareholders’ meetings held during the reporting period
Parentage of
investors Date of Date of Resolution of the
Session Type of meeting
attending meeting disclosure meeting
the meeting
2020 annual Annual 78.95% May 21, May 22, Refer to the
shareholders’ shareholders’ 2021 2021 Announcement on
meeting meeting Resolutions of the 2020
Annual Shareholders’
Meeting disclosed on
www.cninfo.com.cn.
First Extraordinary 76.96% October October Refer to the
extraordinary shareholders’ 11, 2021 12, 2021 Announcement on
shareholders’ meeting Resolutions of the First
meeting in 2021 Extraordinary
40
Mango Excellent Media Co., Ltd. Annual Report 2021
Shareholders’ Meeting in
2021 disclosed on
www.cninfo.com.cn.
Second Extraordinary 79.98% December December Refer to the
extraordinary shareholders’ 21, 2021 22, 2021 Announcement on
shareholders’ meeting Resolutions of the
meeting in 2021 Second Extraordinary
Shareholders’ Meeting in
2021 disclosed on
www.cninfo.com.cn.
2. Extraordinary shareholders’ meetings convened on the requisition of holders of
preferred shares whose voting rights have been restituted
□ Applicable √ N/A
V. Arrangement for differential voting rights
□ Applicable √ N/A
VI. Corporate governance of red-chip structured companies
□ Applicable √ N/A
41
Mango Excellent Media Co., Ltd. Annual Report 2021
VII. Directors, supervisors and executives
1. Particulars
No. of
No. of Changes in Cause of
additional
Beginning shares the number increase or
End date Beginning shares Ending
date of the disposed of of shares decrease in
Name Title Status Gender Age of the term balance of acquired in balance of
term of in the held due to the number
of office shares held the shares held
office reporting other of shares
reporting
period reasons held
period
Chairman of the November
ZHANG Huali Active Male 0 0 0 0 0
Board of Directors 16, 2017
ZHONG Independent June 14,
Active Male 0 0 0 0 0
Hongming Director 2017
Independent January 8,
XIAO Xing Active Female 0 0 0 0 0
Director 2019
Independent January 8,
LIU Yuhui Active Male 0 0 0 0 0
Director 2019
September
LUO Weixiong Director Active Male 0 0 0 0 0
19, 2019
May 25,
ZHANG Yong Director Active Male 0 0 0 0 0
2011
Director & General September
CAI Huaijun Active Male 0 0 0 0 0
Manager 12, 2018
September
LIU Xin Director Active Male 0 0 0 0 0
19, 2018
June 1,
TANG Liang Director Active Male 0 0 0 0 0
2014
Chairman of the
June 14,
YANG Yun Board of Active Male 1,500 0 0 0 1,500
2017
Supervisors
June 14,
LI Jiaochun Supervisor Active Male 0 0 0 0 0
2017
42
Mango Excellent Media Co., Ltd. Annual Report 2021
Employee August 19,
FANG Fei Active Male 0 0 0 0 0
Supervisor 2020
Deputy General August 16,
ZHENG Huaping Active Male 0 0 0 0 0
Manager 2018
Deputy General
August 16,
LIANG Deping Manager & Finance Active Male 0 0 0 0 0
2018
Director
April 27,
WU Jun Board Secretary Active Female 0 0 0 0 0
2019
Deputy General August 16, April 21,
HE Jin Retired Female 0 0 0 0 0
Manager 2018 2021
Deputy General August 16, April 21,
WANG Ke Retired Male 0 0 0 0 0
Manager 2018 2021
Total -- -- -- -- -- -- 1,500 0 0 1,500 --
43
Mango Excellent Media Co., Ltd. Annual Report 2021
Whether any director or supervisor retired or any executive was removed during the reporting period?
√ Yes □ No
On April 21, 2021, our former deputy general managers HE Jin and WANG Ke resigned office due to transfer to
different jobs.
Changes in directors, supervisors and executives:
√ Applicable □ N/A
Name Title Type Date Reason
Re-elected upon expiration of
ZHANG Huali Director Elected May 21, 2021
term of office
ZHONG Re-elected upon expiration of
Independent Director Elected May 21, 2021
Hongming term of office
Re-elected upon expiration of
XIAO Xing Independent Director Elected May 21, 2021
term of office
Re-elected upon expiration of
LIU Yuhui Independent Director Elected May 21, 2021
term of office
Re-elected upon expiration of
LUO Weixiong Director Elected May 21, 2021
term of office
Re-elected upon expiration of
ZHANG Yong Director Elected May 21, 2021
term of office
Re-elected upon expiration of
CAI Huaijun Director Elected May 21, 2021
term of office
Re-elected upon expiration of
LIU Xin Director Elected May 21, 2021
term of office
Re-elected upon expiration of
TANG Liang Director Elected May 21, 2021
term of office
Re-elected upon expiration of
YANG Yun Supervisor Elected May 21, 2021
term of office
Re-elected upon expiration of
LI Jiaochun Supervisor Elected May 21, 2021
term of office
Chairman of the Board Re-elected upon expiration of
ZHANG Huali Elected July 5, 2021
of Directors term of office
Chairman of the Board Re-elected upon expiration of
YANG Yun Elected July 5, 2021
of Supervisors term of office
Re-elected upon expiration of
CAI Huijun General Manager Appointed July 5, 2021
term of office
Re-elected upon expiration of
ZHENG Huaping Deputy General Manager Appointed July 5, 2021
term of office
Deputy General Manager Re-elected upon expiration of
LIANG Deping Appointed July 5, 2021
& Finance Director term of office
Re-elected upon expiration of
WU Jun Board Secretary Appointed July 5, 2021
term of office
Resigned as deputy general
HE Jin Deputy General Manager Retired April 21, 2021 manager due to transfer to a
different job
Resigned as deputy general
WANG Ke Deputy General Manager Retired April 21, 2021 manager due to transfer to a
different job
2. Positions held
Professional background and main work experience of our current directors, supervisors and executives and
main positions held by them in the Company:
1. Directors
ZHANG Huali, male, Han nationality, born in December 1964, member of the Communist Party of
China, literary editor of first rank, graduated from the Chinese Department of Fudan University; former
44
Mango Excellent Media Co., Ltd. Annual Report 2021
deputy chief of the News Center, first deputy chief of the Culture and Sports Channel, director of the
Entertainment Channel and director of the Satellite Channel of Hunan TV, member of the Party
Committee, deputy controller and chief editor of HBS, and deputy secretary of the Party Committee
and general manager of GBS; is now Secretary of the Party Committee and Chairman of GBS (HBS),
and Chairman of Mango Media; has been our Chairman since November 2017, and Secretary of the
Party Committee since November 2018.
ZHONG Hongming, male, Han nationality, born in January 1975, graduated from the Renmin
University of China Law School, doctor of laws; is now associate research fellow at the Institute of
Law, Sichuan Academy of Social Sciences, member of the Executive Council of the China Securities
Law Society, member of the Executive Council of the China Commercial Law Society, and
Independent Director of FIYTA Precision Technology Co., Ltd.; and has been our Independent Director
since June 2017.
XIAO Xing, female, born in March 1971, member of the Communist Party of China, graduated from
the Tsinghua University, PhD candidate of accounting; joined the Tsinghua University School of
Economics and Management in 1997, has acted as teaching assistant, lecturer, associate professor,
tenured associate professor and tenured professor there, and is now professor and chief of the
Department of Accounting of the Tsinghua University School of Economics and Management, and
Executive Deputy Director of the Tsinghua University Global Equity Private Research Institute,
member of the National Accounting Professional Master Education Steering Committee, member of
the Accounting Teaching Steering Committee of the Ministry of Education, and Independent Director
of Li Auto and Bloomage Biotechnology; and has been our Independent Director since January 2019.
LIU Yuhui, male, born in October 1970, member of the Communist Party of China, graduated from the
Chinese Academy of Social Sciences majoring in quantitative economics, PhD candidate; was chief of
the Key Financing Laboratory, the Institute of Finance, the Chinese Academy of Social Sciences from
August 2003 to April 2017; joined the Institution of Economics, the Chinese Academy of Social
Sciences as a research fellow in April 2017; is now professor and doctoral tutor of economics at the
Chinese Academy of Social Sciences, member of the Executive Council of the China Chief Economist
Forum, and member of the Annuity Council of China National Petroleum Corporation; and has been
our Independent Director since January 2019.
LUO Weixiong, male, Han nationality, born in November 1962, member of the Communist Party of
China, undergraduate, bachelor of arts, chief editor; former chief editor of the Radio and TV News
Agency, director and general manager of HTBI, general manager of HTBI Advertising Company,
director of GBS Advertising Operation and Management Center, and director of HBS Operation and
Industry Management Committee; is now member of the Party Committee and Deputy Controller of
HBS, member of the Party Committee and Deputy General Manager of GBS, and Director of Mango
Media Co., Ltd.; and has been our Director since September 2019.
ZHANG Yong, male, born in September 1962, member of the Communist Party of China, graduated
from the Zhengzhou University of Light Industry as an undergraduate majoring in automation control,
senior engineer; former deputy director of Hunan TV Entertainment Channel, director of GBS Program
Marketing Center; assistant to controller and director of the Production Dispatch Center of Hunan TV,
assistant to controller of HBS, and chairman and chief editor of Happy Sunshine; is now Assistant to
the General Manager of GBS, and Director and General Manager of Mango Media Co., Ltd.; and has
been a Director of the Company (including Happigo Co., Ltd., the predecessor of the Company) since
May 2011.
CAI Huaijun, male, born in December 1977, member of the Communist Party of China, graduated
from the Central South University majoring in business management, PhD candidate; former planning
and statistics section chief of the Finance Department of Hunan TV, deputy chief of the Mango Media
Restructuring and Listing Office, deputy chief of the Finance Department of HBS, and deputy general
manager and strategic investment director of Mango Media Co., Ltd.; is now Secretary of the Party
Committee, Managing Director and General Manager of Happy Sunshine; and has been General
Manager of the Company since August 2018, Director of the Company since September 2018, Deputy
Secretary of the Party Committee since November 2018, and Chief Editor since April 2020.
LIU Xin, male, born in October 1971, member of the Communist Party of China, PhD candidate;
former deputy general manager and general manager of the Data Department of China Mobile; is now
Secretary of the Party Committee, Chairman and General Manager of Migu Culture Technology Co.,
Ltd., Chairman of Migu Music Co., Ltd., Migu Video Technology Co., Ltd., Migu Digital Media Co.,
Ltd., Migu Interactive Entertainment Co., Ltd. and Migu Cartoon Co., Ltd., Director of iFlyTek Co.,
Ltd., and Director of China Mobile SDIC Innovation Investment Management Co., Ltd.; and has been
our Director since September 2019.
TANG Liang, male, born in 1976, member of the Communist Party of China, graduated from the
Hunan Normal University majoring in English education, undergraduate; former deputy chief of the
News Center, and chief of the Beijing Program Center of Hunan Economic TV, deputy director of the
45
Mango Excellent Media Co., Ltd. Annual Report 2021
Fashion (Shopping) Channel of Hunan TV, member of the Party Committee and deputy general
manager of Mango Media Co., Ltd., secretary of the Party Committee, director and general manager of
Happigo Inc.; and has been our Director since August 2018, Deputy Secretary of the Party Committee
since November 2018, and Secretary of the Discipline Inspection Committee since April 2020.
2. Supervisors
YANG Yun, male, born in July 1973, member of the Communist Party of China, master candidate,
accountant; former chief of the Finance Department and deputy director of HBS Entertainment
Channel, deputy general manager and chief of the Assets and Finance Department of Mango Media Co.,
Ltd., and chief of the Assets and Finance Department of HBS; is now Assistant to the General Manager
and Chief of the Assets and Finance Department of GBS, Chief of the Finance Department of HBS,
Director and Deputy General Manager of Mango Media, and Director of HTBI, has rich experience in
financial management and media operations; and has been our Chairman of the Board of Supervisor
since June 2017.
LI Jiaochun, male, born in January 1964, member of the Communist Party; has worked in the Hunan
Provincial Party Committee for a long time as chief editor of magazine and chief of the Cultural
Industry Office; is now Deputy Secretary of the Party Committee, Secretary of the Discipline
Inspection Committee and Chairman of the Board of Supervisors of Mango Media; and has been our
Supervisor since June 2017.
FANG Fei, male, born in December 1985, member of the Communist Party of China, master candidate;
former planning director of the Economic TV Advertising Department, HBS Advertising Operation and
Management Center, assistant to the general manager of Happy Sunshine and general manager of the
Advertising Marketing Center of Happy Sunshine; is now Deputy General Manager of Happy Sunshine,
Managing Director and General Manager of Mangofun, Managing Director and General Manager of
Horgos Happy Sunshine Media Co., Ltd., and Director and General Manager of Happy Sunshine
Xingmang Interactive Entertainment Media Co., Ltd.; and has been our Employee Supervisor since
August 2020.
3. Executives (other than those who serve on the Board of Directors concurrently)
ZHENG Huaping, male, born in October 1976, member of the Communist Party of China, graduated
from the Central South University majoring in science, technology and philosophy, master candidate;
former section chief of the Planning and Promotion Department of the Chief Editor Office of Hunan
TV, deputy chief of Mango Media Restructuring and Listing Office, deputy chief of the Chief Editor
Office of the Hunan Satellite TV Channel, deputy director of HBS Program Transaction Management
Center, and chairman and general manager of Mangofun; is now member of the Party Committee,
Chief Editor and Deputy General Manager of Happy Sunshine; and has been Deputy General Manager
of the Company since August 2018, and member of the Party Committee since November 2018.
LIANG Deping, male, born in February 1979, member of the Communist Party of China; MBA,
Changsha University of Science and Technology; former assistant to the director, chief of the Finance
Department and chief of the Production Department of the Entertainment Channel, and deputy director
of the Entertainment Channel of Hunan TV, deputy general manager of Mango Entertainment, and
managing director of Mangofun; is now member of the Party Committee and Deputy General Manager
of Happy Sunshine, Managing Director of Happy Money, and Managing Director of Happigo; and has
been Deputy General Manager and Finance Director of the Company since August 2018, and member
of the Party Committee of the Company since November 2018.
WU Jun, female, born in February 1983, member of the Communist Party of China, PhD candidate;
since June 2007, has been reporter and editor in charge at Hunan News Network of Hunan TV, deputy
chief of the Administration and Human Resources Department, chief of the General Manager’s Office
and Party branch secretary of the head office of Mango Media Co., Ltd.; has been chief of the Board
Office of Mango Excellent Media since August 2018, and our Board Secretary since April 2019.
Positions held in shareholders:
√ Applicable □ N/A
Whether or not
Beginning End date receive
date of the of the remunerations
Name Shareholder Position
term of term of and subsidies
office office from such
shareholder
ZHANG Huali Mango Media Chairman
Co., Ltd.
LUO Weixiong Mango Media Director
46
Mango Excellent Media Co., Ltd. Annual Report 2021
Co., Ltd.
ZHANG Yong Mango Media Director &
Co., Ltd. General Manager
YANG Yun Mango Media Director &
Co., Ltd. Deputy General
Manager
LI Jiaochun Mango Media Deputy Secretary
Co., Ltd. of the Party
Committee,
Secretary of the
Discipline
Inspection
Committee and
Chairman of the
Board of
Supervisors
Positions held in other entities:
√ Applicable □ N/A
Whether or not
Beginning End date
receive
date of the of the
Name Entity Position remunerations
term of term of
and subsidies
office office
from such entity
ZHANG Huali HBS Secretary of the
Party Committee
& Chairman
ZHANG Huali GBS Secretary of the
Party Committee
& Chairman
ZHONG Institute of Law, Associate
Hongming Sichuan Academy of research fellow &
Social Sciences Chief of the
Finance Law
Research Office
ZHONG FIYTA (Group) Co., Independent
Hongming Ltd. Director
XIAO Xing Tsinghua University professor & chief
School of of the Department
Economics and of Accounting
Management
XIAO Xing Tsinghua University Executive Deputy
Global Equity Director
Private Research
Institute
XIAO Xing National Accounting Member
Professional Master
Education Steering
Committee
XIAO Xing Accounting Member
Teaching Steering
Committee of the
Ministry of
Education
XIAO Xing Li Auto Independent
Director
XIAO Xing Bloomage Independent
Biotechnology Director
Corp., Ltd.
LIU Yuhui Chinese Academy of Professor and
47
Mango Excellent Media Co., Ltd. Annual Report 2021
Social Sciences doctoral tutor of
economics
LIU Yuhui TF Securities Guest economist
LIU Yuhui Executive Council Member
of the China Chief
Economist Forum
LIU Yuhui Annuity Council of Member
China National
Petroleum
Corporation
LUO Weixiong HBS Member of the
Party Committee
& Deputy
Controller
LUO Weixiong GBS Member of the
Party Committee
& Deputy General
Manager
ZHANG Yong GBS Assistant to the
General Manager
ZHANG Yong EE-Media Managing
Director
ZHANG Yong Yize Capital Director
Management Co.,
Ltd.
LIU Xin Migu Culture Secretary of the
Technology Co., Party Committee
Ltd. & Chairman
LIU Xin iFlyTek Co., Ltd. Director
LIU Xin China Mobile SDIC Director
Innovation
Investment
Management Co.,
Ltd.
YANG Yun HBS Chief of the
Finance
Department
YANG Yun GBS Assistant to the
General Manager
and Chief of the
Assets and
Finance
Department
YANG Yun HTBI Director
LIANG Deping Happigo Managing
Director
Punishments imposed by the securities regulatory authorities in the past three years on the directors,
supervisors and executives of the Company currently in office or leaving office during the reporting period:
□ Applicable √ N/A
3. Remunerations of directors, supervisors and executives
Decision-making process, criteria for determination and actual amount in respect of remunerations of
directors, supervisors and executives:
Decision-making process: The remunerations of our directors and supervisors are decided by the
shareholders’ meeting according to our Articles of Association and other relevant provisions; the
remunerations of executives are decided by the Board of Directors. The remunerations and subsidies of our
directors and supervisors are considered and approved by the Board of Directors, and then submitted to the
shareholders’ meeting for approval.
48
Mango Excellent Media Co., Ltd. Annual Report 2021
Criteria for determination of the remunerations: The remunerations are determined according to our business
situations, scope and importance of duties and result of performance appraisal. The subsidies of independent
directors are determined by reference to the overall level of the listed companies in the same region and
industry.
Amount of remunerations actually paid: The remunerations of directors, supervisors and executives holding
posts in the Company are paid by the Company. We do not pay any additional subsidy to our directors and
supervisors. The amount of total remunerations paid in 2021 was RMB28.98 million.
Remunerations of directors, supervisors and executives paid in the reporting period:
In RMB0’000
Total
Whether or
remuneratio
not receiving
n received
remuneration
Name Title Gender Age Status from the
s from any
Company
affiliate of
(inclusive of
the Company
tax)
ZHANG Huali Director Male 57 Active 0
ZHONG
Independent Director Male 47 Active 22
Hongming
XIAO Xing Independent Director Female 50 Active 22
LIU Yuhui Independent Director Male 51 Active 22
LUO Weixiong Director Male 59 Active 0
ZHANG Yong Director Male 59 Active 0
Director & General
CAI Huaijun Male 44 Active 600
Manager
LIU Xin Director Male 50 Active 0
TANG Liang Director Male 45 Active 256
Chairman of the Board
YANG Yun Male 48 Active 0
of Supervisors
LI Jiaochun Supervisor Male 57 Active 0
FANG Fei Employee Supervisor Male 36 Active 550
ZHENG Deputy General
Male 45 Active 450
Huaping Manager
Deputy General
LIANG Deping Manager & Finance Male 42 Active 450
Director
WU Jun Board Secretary Female 38 Active 256
Deputy General
HE Jin Female 50 Retired 135
Manager
Deputy General
WANG Ke Male 42 Retired 135
Manager
Total - - - - 2,898 -
VIII. Performance of duties by the directors during the reporting period
1. Meetings of the Board of Directors held during the reporting period
Session Date of meeting Date of disclosure Resolution of the meeting
Refer to the Announcement on
35th meeting of the 3rd Resolutions of the 35th meeting of
January 26, 2021 January 27, 2021
Board of Directors the 3rd Board of Directors
disclosed on www.cninfo.com.cn.
Refer to the Announcement on
36th meeting of the 3rd Resolutions of the 36th meeting of
April 22, 2021 April 26, 2021
Board of Directors the 3rd Board of Directors
disclosed on www.cninfo.com.cn.
49
Mango Excellent Media Co., Ltd. Annual Report 2021
Refer to the Announcement on
1st meeting of the 4th Resolutions of the 1st meeting of
July 5, 2021 July 6, 2021
Board of Directors the 4th Board of Directors
disclosed on www.cninfo.com.cn.
Refer to the Announcement on
2nd meeting of the 4th Resolutions of the 2nd meeting of
August 16, 2021 August 18, 2021
Board of Directors the 4th Board of Directors
disclosed on www.cninfo.com.cn.
Refer to the Announcement on
3rd meeting of the 4th Resolutions of the 3rd meeting of
August 30, 2021 August 31, 2021
Board of Directors the 4th Board of Directors
disclosed on www.cninfo.com.cn.
Refer to the Announcement on
4th meeting of the 4th September 10, Resolutions of the 4th meeting of
September 14, 2021
Board of Directors 2021 the 4th Board of Directors
disclosed on www.cninfo.com.cn.
Refer to the Announcement on
5th meeting of the 4th September 23, Resolutions of the 5th meeting of
September 24, 2021
Board of Directors 2021 the 4th Board of Directors
disclosed on www.cninfo.com.cn.
Refer to the Announcement on
6th meeting of the 4th Resolutions of the 6th meeting of
October 27, 2021 October 28, 2021
Board of Directors the 4th Board of Directors
disclosed on www.cninfo.com.cn.
Refer to the Announcement on
7th meeting of the 4th November 28, Resolutions of the 7th meeting of
November 29, 2021
Board of Directors 2021 the 4th Board of Directors
disclosed on www.cninfo.com.cn.
2. Attendance of the directors at meetings of the Board of Directors and shareholders
Attendance of the directors at meetings of the Board of Directors and shareholders
No. of Whether or
board No. of No. of board No. of not having
No. of No. of
meetings board meetings board been
board
attended meeting present by meeting absent shareholders’
Director meeting
during s present means of s present from two meeting
s absent
the in communicatio by consecutiv attended
from
reportin person n equipment proxy e board
g period meetings
ZHANG
9 2 7 0 0 No 3
Huali
ZHONG
Hongmin 9 1 8 0 0 No 1
g
XIAO
9 0 9 0 0 No 1
Xing
LIU
9 0 9 0 0 No 1
Yuhui
LUO
9 2 7 0 0 No 3
Weixiong
ZHANG
9 2 7 0 0 No 3
Yong
CAI
9 2 7 0 0 No 2
Huaijun
LIU Xin 9 2 7 0 0 No 1
TANG
9 2 7 0 0 No 3
Liang
Explanation about absence from two consecutive meetings of the Board of Directors:
50
Mango Excellent Media Co., Ltd. Annual Report 2021
3. Objections raised by the directors regarding matters of the Company
Whether any director has raised any objection regarding matters of the Company?
□ Yes √ No
No director has raised any objection regarding matters of the Company during the reporting period.
4. Other information regarding the performance of duties by the directors
Whether the suggestions put forward by the directors have been adopted by the Company?
√ Yes □ No
Explanation about the adoption or non-adoption by the Company of the suggestions put forward by the
directors:
During the reporting period, our directors have performed their duties and obligations diligently in strict
accordance with the Company Law, the Securities Law and other applicable laws and regulations and our
Articles of Association, actively participated in the relevant meetings, and seriously considered all proposals.
Our independent directors have kept communications with other directors, supervisors, executives and
related personnel by telephone, attending meetings, on-site investigations or otherwise, actively asked for
information about our production, operation and financial conditions, put forward active suggestions
regarding our development strategies and corporate governance, and expressed independent opinions about
related-party transactions, profit distribution policies, remuneration management, re-election and other
matters, to effectively ensure the fairness and objectiveness of the decisions made by the Board of Directors.
Our directors perform their duties honestly and in good faith, safeguard the legitimate rights and interests of
the Company and all shareholders, and play an active role in promoting our operational compliance and
healthy development.
51
Mango Excellent Media Co., Ltd. Annual Report 2021
IX. Activities of the committees of the Board of Directors during the reporting period
No. of Important
Performance Objections
Committee Members meetings Date of meeting Topics opinions and
of other duties (if any)
held suggestions
Considered and approved the Internal Audit Plan 2021,
2020 Annual Report Audit Plan, and the Proposal
Regarding the Auditor’s Report on the Internal Control
January 20, 2021 Policy for Monetary Capital of Happy Money; and
reviewed the Summary Report on Audit Work 2020 and
Work Plan 2021 prepared by the Audit Department.
Considered and approved the Proposal Regarding the
2020 Auditor’s Report, the Proposal Regarding the
Self-assessment of Internal Controls in 2020, the
Proposal Regarding the Special Report on the Deposit
and Use of Offering Proceeds in 2020, the Proposal
April 12, 2021 Regarding the Fulfillment of Covenants Relating to
Operating Results in 2020, the Proposal Regarding
XIAO Xing Amendment to the Accounting Policies and the Proposal
(Chairman), ZHONG Regarding the Financial Report for the First Quarter of
Hongming, LIU 2021.
Audit Committee 6
Yuhui, LUO
Considered and approved the Proposal Regarding the
Weixiong and TANG
Special Report on Offering Proceeds in the First Quarter
Liang
of 2021, and the Proposal Regarding the Auditor’s Report
on the Internal Control Policy for Monetary Capital of
April 20, 2021 Happigo Co. Ltd.; and reviewed the Summary Report on
Audit Work in the First Quarter of 2021 and Work Plan
for the Second Quarter of 2021 prepared by the Audit
Department.
Considered and approved the Proposal Regarding the
Financial Report for the First Half of 2021, and the
Proposal Regarding the Special Report on the Deposit
August 6, 2021 and Use of Offering Proceeds in the First Half of 2021;
approved the Proposal Regarding the Special
Examination Report on the Implementation of Significant
Events and Material Receipts and Payments in the First
Half of 2021; and reviewed the Summary Report on Audit
52
Mango Excellent Media Co., Ltd. Annual Report 2021
Work in the Second Quarter of 2021 and Work Plan for
the Third Quarter of 2021 prepared by the Audit
Department.
Considered and approved the Proposal Regarding the
Financial Report for the Third Quarter of 2021, the
Proposal Regarding the Re-appointment of Accounting
Firm, and the Proposal Regarding the Special Report on
October 22, 2021 the Deposit and Use of Offering Proceeds in the Third
Quarter of 2021; and reviewed the Summary Report on
Audit Work in the Third Quarter of 2021 and Work Plan
for the Fourth Quarter of 2021 prepared by the Audit
Department.
Considered and approved the Proposal Regarding the
2021 Annual Report Audit Plan prepared by Pan-China
December 24, Certified Public Accountants LLP, and the Internal Audit
2021 Plan 2021; and reviewed the Summary Report on Audit
Work 2021 and Work Plan 2022 prepared by the Audit
Department.
Considered and approved the Proposal Regarding Total
LIU Yuhui February 9, 2021 Remunerations and Remunerations of Senior Officers for
(Chairman), ZHONG 2020.
Compensation
Hongming, XIAO 2
Committee Considered and approved the Proposal Regarding
Xing, ZHANG Yong
and LIU Xin April 22, 2021 Performance Appraisal of Senior Officers for 2020 and
Remuneration Proposal for 2021.
53
Mango Excellent Media Co., Ltd. Annual Report 2021
X. Activities of the Board of Supervisors
Whether the Board of Supervisors has identified any risk involving the Company in its supervisory activities during the reporting
period?
√ Yes □ No
The Board of Supervisors has not raised any objection to the supervisory matters during the reporting period.
XI. Employees
1. Employees and their composition by specialization and education background
Employees of the parent company (person) at the end of the
34
Reporting Period
Employees of main subsidiaries (person) at the end of the
3,988
Reporting Period
Total of employees on active duty Period(person) at the end of
4,022
the Reporting
Total of employees receiving remuneration for the current period
4,022
(person)
Retired employees whose expense is undertaken by parent
7
company and main subsidiaries (person)
Composition of employees by specialization
Areas of specialization Headcounts
Production personnel 1,332
Sales personnel 1,543
Technical personnel 745
Finance personnel 118
Administrative personnel 284
Total 4,022
Composition of employees by education background
Education background Headcounts
Doctorate 6
Master’s degree or above 550
Bachelor’s degree 2,680
Junior college or below 786
Total 4,022
54
Mango Excellent Media Co., Ltd. Annual Report 2021
2. Remuneration policy
In order to establish and improve the market-based salary determination mechanism and internal incentive and restraint mechanism,
and effectively promote the scientific development of the Company, the Company has formulated and promulgated the Measure of
Gross 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 working hours of outsourcing (hour 510,409.11
Total remuneration paid for outsourcing (RMB) 23,002,981.21
XII. The Company’s Profit Distribution and Capitalization of Capital Reserve
Policies of profit distribution during the Reporting Period, especially the development, implementation, or adjustment of cash
dividend distribution.
√ Applicable □ N/A
During the Reporting Period, the Company implemented the 2020 profit distribution plan as follows: an aggregate of
RMB231,449,076.43 as cash dividends are distributed to all shareholders at RMB1.3 (including tax) per 10 shares based on the total
share capital of 1,780,377,511 shares, with 0 bonus shares and 0 capitalized shares involved.
Special explanation for cash dividend policies
Do they comply with the provisions of Articles of Association or
the requirements of the resolutions of general meeting of Yes
shareholders?
Are dividend standards and ratios clear and explicit? Yes
55
Mango Excellent Media Co., Ltd. Annual Report 2021
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
Cash dividend policies are not adjusted or changed
dividend policies compliant and transparent?
The Company’s proposed profit distribution plan and proposed capitalization of capital reserve during the Reporting Period are
consistent with relevant provisions of the Company’s Articles of Association and dividend management methods.
√ Yes □ No □ N/A
The Company’s proposed profit distribution plan and proposed capitalization of capital reserve during the Reporting Period are
consistent with relevant provisions of the Company’s Articles of Association and other regulations.
Description of the profit distribution and capitalization of capital reserve
Number of bonus shares distributed for each 10 shares (unit: share) 0
Amount of dividends distributed for each 10 shares (in RMB) (including tax) 1.30
Number of shares transferred from capital reserve each 10 shares (unit: share) 0
Basic number of the share capital for the distribution proposal (unit: share) 1,870,720,815
Amount of cash dividends (in RMB) (including tax) 243,193,705.95
Amount of cash dividends through other methods (e.g., repurchase of shares) (in RMB) 0.00
Total cash dividends (including those distributed through other methods) (in RMB) 243,193,705.95
Distributable profits (in RMB) 300,279,430.14
Proportion of total cash dividends (including those distributed through other methods) to the
100.00%
total 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
The profit distribution proposal which is in compliance with the relevant provisions of the Articles of Association and the
deliberation procedures, has fully protected the legitimate rights and interests of minority investors, on which the independent
directors have expressed their agreement opinion independently.
The Company puts forward no proposal for cash dividend distribution despite profitable and positive profits of its parent company
attributable to shareholders during the Reporting Period.
□ Applicable √ N/A
XIII. Implementation of the Company’s Equity Incentive Plan, Employee Shareholding Plan
or Other Employee Incentive Measures
□ Applicable √ N/A
56
Mango Excellent Media Co., Ltd. Annual Report 2021
The Company has no equity incentive plan, employee shareholding plan or other employee incentive measures as well as the
implementation thereof during the Reporting Period.
XIV. Construction and Implementation of Internal Control System during the Reporting
Period
1. Construction and Implementation of Internal Control System
During the Reporting Period, the Company conscientiously complies with all laws and regulations as well as the provisions of the
Company’s internal control system to standardize operations, optimize governance and control risks. Through comprehensive
implementation of the Company’s internal control application manual, the Company makes continuous review and evaluation on the
implementation effects of the internal control system, continues to improve and optimize various important business processes in
conjunction with business changes, and revises and updates the internal control application manual, in order to ensure its internal
control management develops synchronously with businesses, and its internal control system is complete, compliant with laws and
regulations, effective and feasible. The Audit Department under the Audit Committee of the Board of Directors of the Company
carries out independent and objective supervision and evaluation within the Company pursuant to regulations and systems such as the
Basic Standards for Enterprise Internal Control, Guidelines for the Standardized Operation of Listed Companies on GEM, Internal
Audit Standards, the Company’s Audit Management System and Management Measures for Self-Evaluation of the Company’s
Internal Control. In accordance with the determination of material weaknesses in the Company’s internal control over financial
report, the Company has no material weaknesses in internal control over financial report on the benchmark date of the internal
control evaluation report, and the Company has maintained effective internal control over financial report in all material aspects
under the requirements of Standards for Enterprise Internal Control and related regulations. In accordance with the determination of
material weaknesses in the Company’s internal control over non-financial report, the Company has no material weaknesses in
internal control over non-financial report on the benchmark date of the internal control evaluation report. There are no factors
affecting the evaluation conclusion of the effectiveness of internal control from the benchmark date of the internal control evaluation
report to the issue date thereof.
2. Details of material internal control deficiencies identified during the Reporting Period
□ Yes √ No
XV. Management and Control of Subsidiaries by the Company During the Reporting Period
Integration Problems met in Resolution Resolution Subsequent
Company name Integration plan
progress integration measures adopted progress resolution plan
Happy Sunshine N/A N/A N/A N/A N/A N/A
Happigo Inc. N/A N/A N/A N/A N/A N/A
EE-Media N/A N/A N/A N/A N/A N/A
57
Mango Excellent Media Co., Ltd. Annual Report 2021
XVI. Internal control evaluation report and internal control audit report
1.Internal control self-evaluation report
Disclosure date April 25, 2022
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
Category Financial Report Non-financial Report
1. General deficiencies: other internal
1. General deficiencies: other internal
control deficiencies under the threshold of
control deficiencies under the threshold
material weakness and significant
of material weakness and significant
deficiencies.
deficiencies.
2 Significant deficiencies: the selection and
2. Significant deficiencies: general
application of accounting policies
mistakes resulting from decision-making
inconsistent with the generally accepted
procedures; violation of internal rules
accounting standards; the absence of
and regulations, resulting in losses;
anti-fraud procedures and control measures;
deficiencies in significant business
the absence of appropriate control
mechanisms or systems; significant or
mechanisms, the absence of compensatory
general deficiencies in internal control
controls or failure in the implementation
that have not been rectified.
Qualitative standard thereof for the accounting treatment of
3. Material weakness: significant
irregular or special transactions; the
mistakes due to lack of democratic
existence of one or more deficiencies in the
decision-making procedures or
control of the financial reporting process at
unscientific decision-making procedures,
the end of the period and the absence of
resulting in significant property losses to
reasonable assurance that the financial
the Company; serious violations of
statements prepared are true and accurate.
national laws and regulations; lack of
3. Material weakness: fraud acts of the
significant business mechanisms, or
Company’s directors, supervisors, or
ineffectiveness of implementation
officers; correction of published financial
thereof; continuous or a large quantity of
reports by the Company, and material
significant internal control deficiencies
misstatements in the current financial reports
in the Company.
detected by the certified public accountants
58
Mango Excellent Media Co., Ltd. Annual Report 2021
but not identified by the Company’s internal
control process; ineffective supervision by
the Audit Committee and the internal audit
institution on internal control.
1. General deficiencies: potential
misstatement of total consolidated profit
<3%, potential misstatement of total
consolidated owner’s equity <0.5%,
potential misstatement of total consolidated
assets <0.5%, potential misstatement of total
1. General deficiencies: direct property
consolidated operating income <0.5%.
loss subsequent to consolidation <0.5%
2. Significant deficiencies, 3% ≤ potential
of total assets of the Company;
misstatement of total consolidated profit
2. 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;
assets <3%, 0.5% ≤ potential misstatement
3. Material weakness: 1% of total assets
of total consolidated operating income <1%.
of the 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)
2. Audit or assurance report of internal control
N/A
XVII. Rectification on Self-examination Problems Regarding the Special Campaign to
Improve the Governance of Listed Companies
Under relevant requirements of the Announcement on Launching a Special Campaign to Improve the Governance of Listed
Companies (Zheng Jian Hui [2020] No. 69) by China Securities Regulatory Commission (“CSRC”) and the Circular on Launching a
59
Mango Excellent Media Co., Ltd. Annual Report 2021
Special Campaign to Improve the Governance of Listed Companies （ Xiang Zheng Jian Gong Si Zi [2020] No. 31) by Hunan
Regulatory Bureau of CSRC, the Company conscientiously organizes, carefully arranges and actively carries out the special
campaign to improve the governance of listed companies. Through self-examination, self-correction and self-regulation, the
Company has strengthened the endogenous power of corporate governance and improved rules of corporate governance system, thus
a good ecology of corporate governance has established, and a listed company governance structure with each department taking
accountable for their own duties and responsibilities, coordinated operation and effective balances has been further improved, so as to
solidify the foundation of the Company’s high-quality development.
1. Change of the Board of Directors
Problems: The Company did not fulfill the deliberation procedures for the change of the Board of Directors on the general
meeting of shareholders as of the self-examination reporting date regarding the special campaign to improve the governance of listed
companies, though the change of the Board of Directors through deliberation had been approved on the 30th meeting of the third
session of the Board of Directors of the Company due to expiration of the third session of the Board of Directors of the Company in
June 2020.
Rectification: On May 21, 2021, the Company held the 2020 general meeting of shareholders, in which the Company elected
members of the fourth session of the Board of Directors of the Company. On July 5, 2021, the Company held the first meeting of the
fourth session of the Board of Directors, in which the Company elected the chairman of the Board of Directors, formed a new special
committee of the Board of Directors, and appointed senior management, thus completed matters of the change of the Board of
Directors.
2. Attendance on meetings including general meeting of shareholders, and meetings of the Board of Directors and the Board of
Supervisors
Problems: Some directors, supervisors and executives were unable to attend all on-site general meetings of shareholders due to
objective reasons such as the COVID-19.
Rectification plan: Directors, supervisors and executives will attend (observe) or authorize others to attend general meeting of
shareholders, and meetings of the Board of Directors and the Board of Supervisors in strict accordance with the relevant regulations.
3. Horizontal competition
Problems: Mango Media Co., Ltd., acting as the Company’s controlling shareholder, and Hunan Broadcasting System, acting as
the actual controller of the Company, have no horizontal competitions between each other, and have made written commitment on
matters related to horizontal competition with the listed company to avoid horizontal competition with the listed company. However,
Xiao Xiang Film Group and Hunan TV & Broadcast Intermediary Co., Ltd., as subordinate enterprises of Golden Eagle Broadcasting
System which is the integrated operating company of the actual controller Hunan Broadcasting System, have operated similar
businesses with the listed company.
Reasons: In accordance with relevant notices and replied approvals issued by the General Office of the CPC Hunan Provincial
Committee, the General Office of the People’s Government of Hunan Province and the Special Panel for Reform of Hunan Provincial
Cultural System from 2018, the CPC Hunan Provincial Committee and the People’s Government of Hunan Province proposed to
reorganize the CPC Committee of Golden Eagle Broadcasting System to universally lead Golden Eagle Broadcasting System, Xiao
Xiang Film Group and Hunan Broadcasting Internet Holding Group. It was agreed that Xiao Xiang Film Group and Hunan
Broadcasting Internet Holding Group were merged into Golden Eagle Broadcasting System to be its wholly-owned subsidiaries, and
all institutional assets owned by Hunan Broadcasting System were divested and transferred to Golden Eagle Broadcasting System, so
that the management system of “Two Institutions under the leadership of one CPC committee operating integratedly” can realize, and
Golden Eagle Broadcasting System can further develop. After the integration of Golden Eagle Broadcasting System, Xiao Xiang
Film Group (film and television content production business) and Hunan TV & Broadcast Intermediary Co., Ltd. (game business)
under Hunan Broadcasting Internet Holding Group have similar businesses with the listed company.
Rectification plan: Golden Eagle Broadcasting System has issued written commitment on matters related to horizontal
60
Mango Excellent Media Co., Ltd. Annual Report 2021
competition with the listed company during the application process of the Company’s 2020 non-public offering, which clearly
describes the plan and schedule for solving the horizontal competition with key details referring to Section VI “I. Performance of
Commitments”.
61
Mango Excellent Media Co., Ltd. Annual Report 2021
Section V Environmental and Social Responsibility
I. Significant Environment Protection Problems
Whether the listed company and its subsidiaries are in high pollution industries regulated by the State Department of Environmental
Protection.
□ Yes √ No
Description of administrative penalties for environmental problems during the Reporting Period
Effects on
Company or production and Rectification
Reasons for penalty Violation cases Penalty result
subsidiaries operation of the measures
listed company
N/A N/A N/A N/A N/A N/A
Other environment information disclosed with reference to other entities engaged in high pollution industries
N/A
Measures taken to reduce its carbon emissions and their effectiveness during the Reporting Period
√ Applicable □ N/A
For details, refer to ESG Report separately disclosed by the Company at www.cninfo.com.cn at the same date.
Reasons for not disclosing other environment information
The Company and its subsidiaries are not in high pollution industries regulated by the State Department of Environmental Protection.
During the Reporting Period, the Company and its subsidiaries receives no penalties due to violation of laws and regulations related
to environment protection.
II. Description of social responsibilities
For details, refer to 2021 Social Responsibility Report separately disclosed by the Company at www.cninfo.com.cn at the same date.
III. Description of consolidating and expanding achievements of poverty eradication and
rural revitalization
For details, refer to 2021 Social Responsibility Report separately disclosed by the Company at www.cninfo.com.cn at the same date.
62
Mango Excellent Media Co., Ltd. Annual Report 2021
Section VI Important Events
I. Performance of Commitments
1. Commitments completed during the Reporting Period or not completed as of the end of the Reporting
Period by actual 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
transfer the listed company’s shares acquired by us in this
restructuring in any form, including but not limited to the public
transfer through securities market or transfer by agreement, nor
will we entrust others with management of the listed company’s
shares held by us. Within 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
Fulfilled the
days, or the daily closing price of the listed company’s shares at
commitments,
the end of a six-month period is lower than the issue price, then
but listing and
Commitments the lock-up period of the listed company’s shares acquired by us
Commitments circulating
made at the Mango Media in this restructuring will automatically extended for six months; July 12, July 12,
on Share procedures for
time of assets Co., Ltd. 2. The aforesaid share lock-up arrangements shall also apply to 2018 2021
Lock-up restricted shares
restructuring the increase in holdings of consideration shares acquired by us in
not commenced
this restructuring due to placement of shares, bonus share
by the
distribution and capitalization of capital reserve by the listed
shareholder
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
63
Mango Excellent Media Co., Ltd. Annual Report 2021
providing or disclosing any information containing
misrepresentations, misleading statements or materials omissions
in this transaction and are therefore investigated by the judicial
authority or the CSRC, we will not transfer the beneficial interest
held by us in the listed company before the investigation
conclusion of the case is determined.
In order to avoid the horizontal competition with the listed
company, Mango Media and Hunan Broadcasting System have
respectively issued their own Letter of Commitments on Avoiding
Horizontal Competition, undertaking that, during the period of
acting as the controlling shareholder and actual controller of the
listed company, “1. We and the channels and companies
controlled by us are not engaged in any business or activity in any
form that competes or would compete with the business of the
listed company and/or its controlled companies, directly or
indirectly. 2. After completion of this restructuring, we will take
and procure the channels and companies controlled by us to take
effective measures to avoid: (1) engaging in any business or
activities directly or indirectly in any form that competes or
would compete 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
Commitments
the listed company and/or its controlled companies in
Hunan on Avoiding
engagement in any business or activity that competes or would
Broadcasting Horizontal
compete with the business being conducted or to be conducted by July 12,
System; Competition, Long-term Ongoing
the listed company and/or its controlled companies. 3. If we and 2018
Mango Media Related-party
the channels and companies controlled by us have any
Co., Ltd. Transactions
commercial opportunity to engage, join or participate in any
and Fund Use
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 we 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 horizontal 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.”
64
Mango Excellent Media Co., Ltd. Annual Report 2021
In order to reduce and regulate the related-party transactions and
safeguard the legal rights and interests of Happigo and minority
shareholders, Hunan Broadcasting System and Mango Media
have issued the Letter of Commitments on Regulating
Related-party Transactions with the contents as follows: we and
the channels and other public institutions or economic
organizations controlled by us will take measures to avoid 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,
Commitments mutual offer of services/labor and etc.), we undertake that we will
Hunan on Avoiding follow and urge the channels and other public institutions or
Broadcasting Horizontal economic organizations controlled by us to follow the principles
July 12,
System; Competition, of market fairness, justice and openness, legally sign agreements Long-term Ongoing
2018
Mango Media Related-party and perform the legal procedures in accordance with the
Co., Ltd. Transactions provisions on the decision-making and abstention of related-party
and Fund Use transactions of the relevant laws and regulations, normative
documents and the listed company to guarantee the fairness and
compliance of the related-party transactions, will not harm the
legitimate rights and interests of shareholders of the listed
company and its controlled subsidiaries as well as shareholders of
the listed company through related-party transactions, and will
promptly disclose the information as required by the relevant
laws and regulations and normative documents; we and the
channels and other public institutions or economic organizations
controlled by us will eliminate any illegal use of assets and funds
of the listed company. If aforesaid commitments are breached, we
are willing to assume all legal responsibilities arising therefrom.
Aegon-industr
ial Fund
Management
Co., Ltd.; The shares purchased by the issuance target shall not be
Zhongou transferred within 6 months since end of the issuance. From end
Commitments
Commitments Asset of this issuance to expiry of lock-up period, any shares added to August February 24, Performance
on Share
made at the Management the shares purchased by the issuance target due to bonus issue or 24, 2021 2022 completed
Lock-Up
time of IPO or Co., Ltd.; share capital converted from capital reserves shall also comply
re-financing China Mobile with aforesaid lock-up arrangement.
Capital
Holding Co.,
Ltd.
Mango Other 1. During six months prior to the date of board resolution Decemb
Long-term Ongoing
Excellent Commitments concerning this issuance and till today, the Company did not er 25,
65
Mango Excellent Media Co., Ltd. Annual Report 2021
Media Co., invest in any similar financial business; from the date of issuing 2021
Ltd. letter of commitment (December 25, 2020) to the date when the
capitals raised this time are totally used or during 36 months after
raised capitals are available, the Company undertakes to not add
investment in any similar financial business (including capital
increase, loan, security and other forms of investment); 2. As at
the date of this Announcement, the Company holds 100% of
equities of Hunan Happy Money Microfinance Co., Ltd.
(hereinafter “Happy Money”), the Company will complete
dispose of small loan business of Happy Money through
dissolution and liquidation, termination of business or
transferring equities to qualified entity within six months after
letter of commitments is issued, and the Company will no longer
be engaged in small loan business.
(1) As at the date of issuing letter of commitments, GBS and
channels or enterprises controlled by it have not carried out
horizontal competition which has material adverse effect on the
Issuer and/or enterprises controlled by it. (2) Within 5 years after
completing this Offering, GBS and channels or enterprises
controlled by it will settle the issue of horizontal competition
concerning the Issuer by various means such as entrusted
management, assets restructuring, business
adjustment/termination and assets transfer/sale, and implement
measures related to business integration, in accordance with laws,
policies, articles of association or similar organizational
documents of such channels or enterprise, with a view to benefit
Commitments
business development of the Issuer and safeguard benefits of
on Avoiding
shareholders of the Issuer; (3) GBS will, and procure that
Horizontal Septemb
channels and enterprises controlled by it will, adopt effective
GBS Competition, er 25, Long-term Ongoing
measures to: (i) avoid adding other business constituting
Related-party 2020
horizontal competition with the Issuer and/or enterprises
Transactions
controlled by it before settling existing issue of horizontal
and Fund Use
competition; (ii) not to support any other person in engaging any
business or activities which compete or may compete with the
business dealt in by the Issuer and/or enterprises controlled by it
currently or in future. (4) If GBS and channels or enterprises
controlled by it have any business opportunity of carrying out,
participating in or holds equities in any business or activity which
may compete with the business dealt in by the Issuer and/or
enterprises controlled by it, the Issuer and/or enterprises
controlled by it shall have preferred rights with respect to such
business opportunity. (5) GBS agrees to bear and compensate all
losses, damages and expenses incurred by the Issuer and/or
enterprises controlled by it due to breach of aforesaid
66
Mango Excellent Media Co., Ltd. Annual Report 2021
commitments by GBS.
(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 interests; (2) From the date
hereof to the completion of the Company’s issuance of A-share
shares to specific persons, if securities regulatory authorities such
as the CSRC and Shenzhen Stock Exchange make separate
provisions or put forward other requirements on the recovery
Hunan measures for returns and the commitments thereon, and the above
Broadcasting commitments cannot meet such provisions, we will then make Septemb
Other
System; supplementary commitments in accordance with the latest er 25, Long-term Ongoing
Commitments
Mango Media provisions; (3) We will effectively take relevant recovery 2020
Co., Ltd. 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; (2) I will not to transfer benefits to other entities
CAI Huaijun;
or individuals free of charge or under unfair conditions, nor
HE Jin;
otherwise damage the Company’s interests; (3) I will restrict my
LIANG
position-related consumption; (4) I will not use the Company’s
Deping; LIU
assets to engage in investing or consumption activities irrelevant
Xin; LIU
to performance of my duties; (5) I will procure the linkage of the
Yuhui; LUO
compensation system formulated by the board of directors or the
Weixiong;
remuneration and appraisal assessment committee with the
TANG Liang;
implementation of the Company’s recovery measures for returns
WANG Ke; Septemb
Other within my legal authority; (6) if the Company subsequently
WU Jun; er 25, Long-term Ongoing
Commitments implements the equity incentive plan, I will procure the linkage
XIAO Xing; 2020
of exercise conditions for the Company’s equity incentives to be
ZHANG
announced with the implementation of the Company’s recovery
Huali;
measures for returns within my legal authority; (7) from the date
ZHANG
hereof to the completion of the Company’s issuance of A-share
Yong;
shares to specific persons, if securities regulatory authorities such
ZHENG
as the CSRC and Shenzhen Stock Exchange make separate
Huaping;
provisions or put forward other requirements on the recovery
ZHONG
measures for returns and the commitments thereon, and the above
Hongming
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
67
Mango Excellent Media Co., Ltd. Annual Report 2021
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) If it intends to reduce the shares of the Company held by it
after expiry of lock-up period, it shall reduce according to
relevant laws, and make announcement through the Company 3
trading days before reducing. The total number of shares of the
Company reduced by it within two years after expiry of lock-up
period shall not exceed 5% of total shares held by it at the time of
IPO, and the price at which shares are reduced shall not be less
Commitments
Mango Media than 100% of price of IPO. If shares are reduced two years after January
on Reducing Long-term Ongoing
Co., Ltd. expiry of lock-up period, the price at which shares are reduced 21, 2015
Shareholdings
through call auction trading system of securities exchange shall
not be less than closing price of shares in the trading day
immediately preceding the share reduction announcement day. (2)
The period of share reduction is six months after announcing
reduction plan; if intending to continue to reduce shareholding
after expiry of aforesaid period, the reduction plan shall be
announced again according to aforesaid arrangement.
Hongyi Investment Industry Phase I Fund (Tianjin) (L.P.) Mianyang Fund
Hongyi (“Hongyi Investment”), Mianyang Science and Technology and Hongshan
Investment Industry Investment Fund (L.P.) (“Mianyang Fund”), Tianjin Capital
Industry Phase Hongshan Capital Investment Fund Center (L.P.) (“Hongshan disclosed on
I Fund Capital”), as other existing shareholders of the Company, make November 19,
(Tianjin) the following commitments with respect to the intention to reduce 2016 and
(L.P.); shareholdings: (1) We will not transfer or entrust others with Hongyi
Mianyang management of any pre-IPO shares of the issuer held by us, nor Investment
Science and propose the repurchase of such shares by the Company within disclosed on
Commitments
Technology twelve months from the listing date of the issuer. (2) If we intend January January 21, December 10,
on Reducing
Industry to reduce our shareholdings in the Company after the expiry of 21, 2015 2018 2016 the
Shareholdings
Investment the lock-up period of shares held by us in the Company, we will Announcement
Fund (L.P.); legally do same, and make a public announcement within three on Prompt of
Tianjin trading days prior to reduction through the Company. The Shareholdings
Hongshan shareholdings of Hongyi Investment, Mianyang Fund, Hongshan Reduction Plan
Capital Capital we reduce in aggregate within two years after the expiry for Shareholders
Investment of the lock-up period will equal to the issuer’s shares held in total Holding 5% or
Fund Center by us and the reduction price will not lower than 80% of the IPO More of Shares
(L.P.) price of the Company. The reduction period will be six months Prior to IPO
after the public announcement of the reduction plan, and if we through the
68
Mango Excellent Media Co., Ltd. Annual Report 2021
continue to reduce our shareholdings after expiry of the reduction Company, and
period, we will make the public announcement anew in as of the end of
accordance with the aforesaid arrangements. During the period 2017, all of
from the listing of the Company’s shares until reduction of them have
shareholdings, if the Company has paid dividends, given bonus completed
shares, capitalized capital reserve, issued new shares or had other reduction of
ex-right and ex-dividend matters, the floor reduction price and their
number of reduced shares will be adjusted accordingly. If the shareholdings.
Company’s shareholders fail to fulfill these commitments, the
proceeds from reduction of shareholdings in the Company will
belong to the listed Company.
The Company commits to improving the profit distribution
system, in particular cash dividends policy. The Company
improved the Articles of Associations (Draft) at the 1st
extraordinary general meeting of shareholders in 2014, stipulating
the Company’s profit distribution policy, the procedures of
decision-making and implementation of the profit distribution
policy, preparation and adjustment mechanism of the profit
Mango Commitments
distribution policy, and the plan for shareholders’ dividend returns
Excellent on January
in order to enhance the protection over minority shareholders. Long-term Ongoing
Media Co., Distributing 21, 2015
The Articles of Associations (Draft) further defines the
Ltd. Dividends
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: 1.
Controlling Shareholder: Mango Media, as the controlling
shareholder of the Company, issued the Letter of Commitments on
Avoiding Horizontal Competition. (1) Mango Media and its other
subordinate enterprises other than the Issuer are not engaged in
Commitments
any business or activity in any form that competes or would
Hunan on Avoiding
compete with the business of the Issuer and/or its subordinate
Broadcasting Horizontal
enterprises directly or indirectly. (2) Mango Media will take and January
System; Competition, Long-term Ongoing
procure any enterprises controlled by Mango Media to take 21, 2015
Mango Media Related-party
effective measures to avoid: (A) engaging in any business or
Co., Ltd. Transactions
activities directly or indirectly in any form that competes or
and Fund Use
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
69
Mango Excellent Media Co., Ltd. Annual Report 2021
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 engage in any business or
activity that damages or would damage the interests of the Issuer
and/or its subordinate enterprises by utilizing the status of the
shareholder, the rights to which the shareholder is entitled and the
information obtained 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.
Mango Media 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. 2. Commitments on
avoiding horizontal competition and constraint measures of the
actual controller: (1) Letter of Overall Commitments issued by
Hunan Broadcasting System: On March 29, 2012, Hunan
Broadcasting System, as the actual controller of the Company,
issued the Letter of Commitments on Avoiding Horizontal
Competition, undertaking that: 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 Hunan
Broadcasting System will take and procure any enterprises
controlled by Hunan Broadcasting System 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, 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
70
Mango Excellent Media Co., Ltd. Annual Report 2021
commercial opportunities. Mango Media 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. 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 actual 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 actual controllers will be liable for
compensation according to law.
Commitments
on equity
incentives
Other
commitments
made to the
Company’s
minority
shareholders
Fulfill the
commitments Yes
on 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
II. Appropriation of non-operating funds of the Listed Company by the controlling
shareholder and other related parties
√ Applicable □ N/A
In: RMB0’000
71
Mango Excellent Media Co., Ltd. Annual Report 2021
New Balance as
Proportion Total Proportion
Type of Openi appropriat of the Estimated
Appropr Reason for of the repayments of the Estimated Estimated
Shareholder related ng ed amount Closing disclosure repayment
iation appropriati latest during the latest repayment repayment
s or related relations balanc during the balance date of the time
period on audited net Reporting audited net method amount
parties hip e Reporting annual (month)
assets Period assets
Period report
Shanghai
Mamma Mia Borrowing
Interactive s for
Cash
Entertainme Others 5 years production 262.97 0 0.00% 0 262.97 0.02% 262.97 262.97 May 2026
settlement
nt and
Technology operation
Co., Ltd.
Total 262.97 0 0.00% 0 262.97 0.02% 262.97 -- 262.97 --
In order to support the business development of Shanghai Mamma Mia Interactive Entertainment Technology Co.,
Relevant decision procedures Ltd. (“Mamma Mia”) which was originally a wholly-owned subsidiary of Happy News, Mamma Mia would be
supported with liquidity from Happy News through Happy News’ internal approval and decision-making process.
Reasons for new appropriation of
non-operating funds by controlling
shareholders and other related parties and
N/A
description of the responsible persons’
accountability and proposed measures by
the Board of Directors in the current period
Reasons for failure to settle appropriated In December 2016, Happy News transferred 70% of the equity shares of Mamma Mia externally (to noncontrolling
non-operating funds as planned, and shareholders and their affiliates), so that Mamma Mia was no longer included in the scope of consolidation of
description of accountability and proposed Happy News. At present, Happy News still holds 24.25% of the equity shares of Mamma Mia. In order to ensure
measures by the Board of Directors in the stable development of Mamma Mia, Happy News and Mamma Mia signed Repayment Plan, which stipulates
current period monthly repayment of RMB 50,000 since January 2022, until the loan is paid off.
Pan-China Certified Public Accountants LLP believes that the summary sheet prepared by management of Mango
Excellent Media complies with the provisions of Guideline No. 8 on Regulation of Listed Companies – Regulatory
Special review opinions on appropriation of Requirements on Fund Transfer and External Guarantee of Listed Companies (CSRC Announcement (2022) No.
funds given by accounting firm 26) and Guideline No. 1 on Self-discipline Regulation of Companies Listed at the Growth Enterprise Market of the
Shenzhen Stock Exchange – Business Handling (SZS (2022) No. 28) in all material aspects, truly reflecting
appropriation of non-operating funds and transfer of other related capitals of Mango Excellent Media in 2021.
Reasons for inconsistency between
appropriation of non-operating funds by the
controlling shareholder and other related N/A
parties disclosed in the Company’s annual
report and that in the special audit opinion
72
Mango Excellent Media Co., Ltd. Annual Report 2021
III. External Guarantees in Violation of Regulations
□ Applicable √ N/A
The Company has no external guarantees in violation of regulations during the Reporting Period.
IV. Explanations from the Board of Directors for the “Modified Auditor’s Report” Issued
Most Recently
□ Applicable √ N/A
V. Explanations from the Board, the Board of Supervisors, the Independent Directors (if any)
for the “Modified Auditor’s Report” Issued by the Engaged Accounting Firm During the
Reporting Period
□ Applicable √ N/A
VI. Explanation from the Board for Reasons and Effects of Accounting Policies and
Accounting Estimate Change and Significant Accounting Mistake Correction
√ Applicable □ N/A
1. Reasons for changes
On December 7, 2018, the Ministry of Finance issued the Notice on Issuing the Revised Accounting Standards for Business
Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35), 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, 2019; other 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. 21
- Leases revised by the Ministry of Finance on December 7, 2018. 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 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.
4. Effects of Change
The Company has implemented the new leasing standard since January 1, 2021. In accordance with the provisions for the transition
from the old standard to the new standard, the Company may adjust the opening amounts of relevant items of the financial statements
based on the cumulative effect of the first implementation of the standard, and cannot make any adjustments on information for the
comparable periods. This change in accounting policies will bring no significant impacts on the Company’s financial position,
operation results and cash flows.
73
Mango Excellent Media Co., Ltd. Annual Report 2021
VII. Explanation for Changes in the Scope of Consolidated Financial Statements Comparing
with Those in Prior Year
√ Applicable □ N/A
During the Reporting Period, Hainan E.E. Media Co., Ltd. and Shanghai Mango Universe Culture and Entertainment Co., Ltd. are
newly established, while Happigo (Beijing) New Media Technology Co., Ltd.and Hangzhou Hemei Interactive Entertainment
Technology Co., Ltd. are deregistered; and shares of Hunan Happy Money Microfinance Co., Ltd., are transferred out in 100%, while
shares of Shenzhen Zhonghe Boao Technology Development Co., Ltd. are acquired in 100%. For details, see “VIII. Changes in
Scope of Consolidation in Section X 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 6
Name of the engaged certified public accountants LIU Gangyue, ZHANG Hong
Audit period of the engaged certified public accountants 1 year for LIU Gangyue and 4 years for ZHANG Hong
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
During the year, the Company engaged China International Capital Corporation Limited as its sponsor due to non-public offering of
stocks, and paid RMB14 million in total as the underwriting fees in such period.
IX. Delisting Subsequent to the Disclosure of the Annual Report
□ Applicable √ N/A
X. Bankruptcy and Reorganization
□ Applicable √ N/A
The Company has no matters with respect to bankruptcy and reorganization during the Reporting Period.
XI. Material Litigation or Arbitration
□ Applicable √ N/A
The Company involves in no material litigation or arbitration during the Reporting Period.
74
Mango Excellent Media Co., Ltd. Annual Report 2021
XII. Penalty and Rectification
□ Applicable √ N/A
The Company has no penalty and rectification during the Reporting Period.
XIII. Integrity of the Company and Its Controlling Shareholders and actual controllers
□ Applicable √ N/A
XIV. Significant Related-party Transactions
1. Related-party transactions related to daily operations
√ Applicable □ N/A
Approv Availabl
Exceed
Proporti ed e
Amount the
Related Pricing on of trading Mode of market
(in approve Disclos
Related party party Type Content principl Price similar amount settleme price of Disclosure index
RMB0’ d ure date
relationship e trading (in nt similar
000) amount
amount RMB0’ transacti
or not
000) ons
Under
Published at
common Accepta
Golden Eagle April http://www.cninfo.co
control of nce of Copyrig Market 73,295. 73,295. By 73,295.
Broadcasting 7.40% 70,031 Yes 26, m.cn; Announcement
the same labor ht, etc. pricing 92 92 transfer 92
System 2021 Titles: Announcement
actual service
on the Occurrence of
controller
Related-party
Under Transactions
common Renderi Advertis Concerning Daily
Golden Eagle April
control of ng of ing Market 168,414 168,414 By 168,414 Operations in 2020
Broadcasting 10.97% 151,200 Yes 26,
the same labor release, pricing .52 .52 transfer .52 and Estimation of
System 2021
actual service etc. Related-party
controller Transactions
Yunhong Company Concerning Daily
Renderi
Communicatio materially Advertis April Operations in 2021,
ng of Market 76,596. 76, By 76,
n Technology affected by ing 4.99% 77,900 None 26, Announcement on
labor pricing 83 596.83 transfer 596.83
(Guangzhou) the actual release 2021 Increasing the
service
Co., Ltd. controller Estimated Amount of
Related-party
Hunan TV Under
Renderi transactions
Business common Advertis April
ng of Market 67,343. 67,343. By 67,343. Concerning Daily
Operation control of ing 4.39% 66,458 Yes 26,
labor pricing 87 87 transfer 87 Operations in 2021,
Development the same release 2021
service and Announcement on
Co., Ltd. actual
75
Mango Excellent Media Co., Ltd. Annual Report 2021
controller Adjusting the
Estimated Amount of
Related-party
Renderi transactions
MIGU Culture Sharing the April
ng of Operator Market 165,053 165,053 By 165,053 Concerning Daily
Technology key 10.75% 170,000 None 26,
labor revenue pricing .22 .22 transfer .22 Operations with
Co., Ltd. manager 2021
service MIGU Culture
Technology Co., Ltd.
in 2021
550,704
Total -- -- -- 535,589 -- -- -- -- --
.36
Details of return of goods in large sales None.
Actual performance during the reporting
period (if any) in the event that the total
amount of the daily related-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 (if N/A
applicable)
2. Related-party transactions related to acquisition or disposal of assets and equities
√ Applicable □ N/A
Carrying Appraisal
Trading
amount of value of Transfer
Related profit or
Pricing transferre transferre price Mode of Disclosur
Related Party party Type Content loss Disclosure index
principle d assets d assets (RMB0’0 settlement e date
relationship (RMB0’0
(RMB0’0 (RMB0’0 00)
00)
00) 00)
Published at the
100% equity official website of
shares of cninfo;
Mango Media Parent Equity Hunan Happy Appraisal By June 25, Announcement on
30,347.9 30,424.97 30,424.97 77.07
Co., Ltd. company transfer Money value transfer 2021 Transfer of 100%
Microfinance Equity Shares of a
Co., Ltd. Wholly-owned
Subsidiary
Reasons for significant difference between transfer
None.
price and carrying amount or appraisal value (if any)
Impact on the Company’s operating results and An amount of RMB770,700 was recognized for investment income from equity transfer at the
financial situation level of consolidated financial statements, accounting for 0.04% of the net profit in the
76
Mango Excellent Media Co., Ltd. Annual Report 2021
consolidated statements.
The performance realization during the Reporting
Period if the related party transaction involves None.
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. Transactions with finance companies having related-party relationship
□ Applicable √ N/A
The Company has no deposit, loan, credit facility or other financial business with finance companies having related-party
relationship and related parties.
6. Transactions between finance companies controlled by the Company and related parties
□ Applicable √ N/A
Finance companies controlled by the Company have no deposit, loan, credit facility or other financial business with related parties.
7. Other significant related-party transactions
□ Applicable √ N/A
The Company has no other significant related-party transactions during the Reporting Period.
XV. Significant Contracts and Performances Thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ N/A
The Company has no trusteeship during the Reporting Period.
77
Mango Excellent Media Co., Ltd. Annual Report 2021
(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. Cash asset management by others under entrustment
(1) Entrusted financing
√ Applicable □ N/A
Overview of entrusted financing during the Reporting Period
In RMB0’000
Impaired amount of
Capital sources of Amount of entrusted Amount overdue
Specific type Undue balance financing overdue
entrusted financing financing and not recovered
and not recovered
Bank financing
Raised funds 182,000 178,000 0 0
product
Bank financing
Own funds 163,000 163,000 0 0
product
Total 345,000 341,000 0 0
Details of high-risk entrusted financing with significant single amount or poor security and liquidity.
□ Applicable √ N/A
Expected unavailability to recover the principal or other situations that may lead to impairment with respect to entrusted financing
□ Applicable √ N/A
(2) Entrusted loans
□ Applicable √ N/A
The Company has no entrusted loan during the Reporting Period.
78
Mango Excellent Media Co., Ltd. Annual Report 2021
4. Other significant contracts
□ Applicable √ N/A
The Company has no other significant contracts during the Reporting Period.
XVI. Description of Other Significant Matters
√ Applicable □ N/A
During the Reporting Period, 100% of the equity in Mango Studios Cultural Co., Ltd., Hunan Mango Entertainment Co., Ltd., and
Shanghai Mangofun Technology Co., Ltd., as wholly-owned subsidiaries of the Company, were transferred to Hunan Happy
Sunshine Interactive Entertainment Media Co., Ltd., another wholly-owned subsidiary of the Company.
XVII. Description of Significant Matters of the Company’s Subsidiaries
□ Applicable √ N/A
79
Mango Excellent Media Co., Ltd. Annual Report 2021
Section VII 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
Capitalization
Proporti Bonus
Quantity New shares of capital Others Sub-total Quantity Proportion
on shares
reserve
I. Restricted share 849,020,857 47.69% 90,343,304 0 0 0 90,343,304 939,364,161 50.21%
1. Shareholdings by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. Shareholdings by the
849,019,732 47.69% 60,228,869 0 0 0 60,228,869 909,248,601 48.60%
state-owned legal persons
3. Other shareholdings by
1,125 0.00% 30,114,435 0 0 0 30,114,435 30,115,560 1.61%
domestic investors
Including: shareholdings by
0 0.00% 30,114,435 0 0 0 30,114,435 30,114,435 1.61%
domestic legal persons
Shareholdings by domestic
1,125 0.00% 0 0 0 0 0 1,125 0.00%
natural persons
4. Shareholdings by foreign
0 0.00% 0 0 0 0 0 0 0.00%
investors
Including: shareholdings by
0 0.00% 0 0 0 0 0 0 0.00%
overseas legal persons
Shareholdings by overseas
0 0.00% 0 0 0 0 0 0 0.00%
natural persons
II. Unrestricted share 931,356,654 52.31% 0 0 0 0 0 931,356,654 49.79%
1. RMB ordinary share 931,356,654 52.31% 0 0 0 0 0 931,356,654 49.79%
2. Domestic listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
share
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
share
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total 1,780,377,511 100.00% 90,343,304 0 0 0 90,343,304 1,870,720,815 100.00%
80
Mango Excellent Media Co., Ltd. Annual Report 2021
Reason for share changes
√ Applicable □ N/A
In accordance with the CSRC’s Official Reply on Approving the Registration of Share Offering to Specific Persons by Mango
Excellent Media (Zheng Jian Xu Ke [2021] No. 2105), the Company issued 90,343,304 RMB ordinary shares to three specific
persons, namely Zhongyi Capital Holding Group Limited, Lombarda China Fund Management Co.,Ltd., and Aegon-industrial Fund
Management Co., Ltd., for which Pan-China Certified Public Accountants LLP made an audit for verification and issued a Capital
Verification Report (Tian Jian Yan [2021] No. 2-29). The above shares were listed on the GEM of the Shenzhen Stock Exchange on
August 24, 2021, with a six-month lock-up period commencing from the date of listing of the additional shares. Upon completion of
this offering, the Company’s shares have increased from 1,780,377,511 shares to 1,870,720,815 shares.
Approval of share changes
√ Applicable □ N/A
On June 24, 2021, the Company received CSRC’s Official Reply on Approving the Registration of Share Offering to Specific Persons
by Mango Excellent Media (Zheng Jian Xu Ke [2021] No. 2105), which approved: 1. it was approved the Company’s registration
application for share offering to specific persons; 2. the Company’s shares to be issued this time shall be offered in strict accordance
with the reporting documents and the issue plan submitted to the Shenzhen Stock Exchange; 3. this approval is valid for 12 months
from the date of approval of registration; 4. in case of any significant matters arising from the Company between the date of approval
of registration and date of the end of this issuance, the Company shall report to Shenzhen Stock Exchange in a timely manner and
deal with such matters in accordance with relevant regulations.
Description of registration of share changes
√ Applicable □ N/A
The Company issued 90,343,304 RMB ordinary shares to three specific persons, namely Zhongyi Capital Holding Group Limited,
Lombarda China Fund Management Co.,Ltd., and Aegon-industrial Fund Management Co., Ltd., which were listed on the GEM of
the Shenzhen Stock Exchange on August 24, 2021, with a six-month lock-up period commencing from the date of listing of the
additional shares.
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
Increase in Restricted
Closing
Opening restricted shares released Date of proposed release of
Name of shareholders restricted Reasons for restriction
restricted shares shares for the for the current restriction
shares
current period period
Additional restricted The lock-up period was
shares in offering of expired on July 12, 2021,
Mango Media Co., Ltd. 849,019,732 0 0 849,019,732
shares for purchasing but the listing and
assets circulating procedures of the
81
Mango Excellent Media Co., Ltd. Annual Report 2021
restricted shares are not
applied for.
Additional restricted As the lock-up period was
Zhongyi Capital shares in offering of expired on February 24,
0 60,228,869 0 60,228,869
Holding Group Limited A-share shares to 2022, these shares have
specific persons in 2020 been Listed and circulated.
Industrial and
Commercial Bank of
Additional restricted As the lock-up period was
China Limited -
shares in offering of expired on February 24,
Lombarda China Times 0 7,428,228 0 7,428,228
A-share shares to 2022, these shares have
Pioneer Stock Promoter
specific persons in 2020 been Listed and circulated.
Securities Investment
Fund
Shanghai Pudong
Development Bank Co.,
Ltd – Lombarda China Additional restricted As the lock-up period was
Innovation Future shares in offering of expired on February 24,
0 4,416,784 0 4,416,784
18-month Closed A-share shares to 2022, these shares have
Operation Hybrid specific persons in 2020 been Listed and circulated.
Securities Investment
Fund
China Everbright Bank
Co., Ltd.-Xingquan Additional restricted As the lock-up period was
Business Model shares in offering of expired on February
0 3,122,979 0 3,122,979
Preferred Hybrid A-share shares to 24,2022, these shares have
Securities Investment specific persons in 2020 been Listed and circulated.
Fund (LOF)
China Merchants Bank
Additional restricted As the lock-up period was
Co., Ltd. - Lombarda
shares in offering of expired on February 24,
China Internet Pioneer 0 2,810,680 0 2,810,680
A-share shares to 2022, these shares have
Hybrid Securities
specific persons in 2020 been Listed and circulated.
Investment Fund
China Merchants Bank
Additional restricted As the lock-up period was
Co., Ltd. - Xingquan
shares in offering of expired on February 24,
Heyi Flexible Allocation 0 2,411,981 0 2,411,981
A-share shares to 2022, these shares have
Hybrid Securities
specific persons in 2020 been Listed and circulated.
Investment Fund (LOF)
China Merchants Bank Additional restricted As the lock-up period was
Co., Ltd. - Xingquan shares in offering of expired on February 24,
0 2,411,980 0 2,411,980
Herun Hybrid Securities A-share shares to 2022, these shares have
Investment Fund specific persons in 2020 been Listed and circulated.
Industrial and 0 1,561,489 0 1,561,489 Additional restricted As the lock-up period was
82
Mango Excellent Media Co., Ltd. Annual Report 2021
Commercial Bank of shares in offering of expired on February 24,
China Limited - A-share shares to 2022, these shares have
Xingquan Green specific persons in 2020 been Listed and circulated.
Investment Hybrid
Securities Investment
Fund (LOF)
Postal Savings Bank of
China Co., Ltd.- Additional restricted As the lock-up period was
Lombarda China shares in offering of expired on February 24,
0 1,003,814 0 1,003,814
Shuangli Debt A-share shares to 2022, these shares have
Securities Investment specific persons in 2020 been Listed and circulated.
Fund
4,946,500 shares are
additional restricted
shares in offering of As the lock-up period of
A-share shares to 4,946,500 shares was
Others 1,125 4,946,500 0 4,947,625 specific persons in 2020 expired on February 24,
and the left 1,125 shares 2022, these shares have
are restricted shares to been Listed and circulated.
directors, supervisors
and executives.
Total 849,020,857 90,343,304 0 939,364,161 -- --
II. Shares issuing and listing
1. Securities issuing during the Reporting Period (excluding preferred shares)
√ Applicable □ N/A
Shares and their Offering Approved End date
Disclosure
derivative Issue date price (or Quantity Listing date quantity for of Disclosure index
date
securities interest rate) listing trading transaction
Shares
For details, refer to
Announcement on Offering
Offering A-share
August 3, 49.81 August 24, A-share Shares to Specific August 19,
shares to specific 90,343,304 90,343,304
2021 RMB/Share 2021 Persons in 2020 disclosed 2021
persons in 2020
by the Company at
http://www.cninfo.com.cn/
Convertible corporate bonds, separately traded convertible corporate bonds, corporate bonds
Other derivative securities
Description of securities issuing during the Reporting Period (excluding preferred shares)
In accordance with the CSRC’s Official Reply on Approving the Registration of Share Offering to Specific Persons by Mango
83
Mango Excellent Media Co., Ltd. Annual Report 2021
Excellent Media (Zheng Jian Xu Ke [2021] No. 2105), the Company issued 90,343,304 RMB ordinary shares to three specific
persons, namely Zhongyi Capital Holding Group Limited, Lombarda China Fund Management Co.,Ltd., and Aegon-industrial Fund
Management Co., Ltd. at a price of RMB49.81 per share, for which Pan-China Certified Public Accountants LLP made an audit for
verification and issued a Capital Verification Report (Tian Jian Yan [2021] No. 2-29). The above shares were listed on the GEM of
the Shenzhen Stock Exchange on August 24, 2021, with a six-month lock-up period commencing from the date of listing of the
additional shares. Upon completion of this offering, the Company’s shares have increased from 1,780,377,511 shares to
1,870,720,815 shares.
2. Explanation for changes in the Company’s total shares, shareholder structure, and structure of assets
and liabilities
√ Applicable □ N/A
On August 24, 2021, the Company issued 90,343,304 Renminbi common shares to specific targets at the Growth Enterprise Market
of the Shenzhen Stock Exchange, increasing the Company’s shares from 1,780,377,511 shares to 1,870,720,815 shares.
Refer to following table for changes of assets and liabilities at the end of reporting period and end of previous year (Unit: RMB):
Item December 31, 2021 December 31, 2020 Change at end of this year compared
with end of previous year
Total assets 26,110,751,404.90 19,265,699,802.9 35.53%
Total liabilities 9,113,587,160.83 8,644,478,556.28 5.43%
3. Current shares subject to employee share ownership plan
□ Applicable √ N/A
III. Shareholders and actual controllers
1. Description of the quantity of the Company’s shareholders and shares held by them
Unit: share
Total
Total preferred
ordinary Total
shareholders
shareholders preferred
with recovered Total
Total ordinary as of the end shareholders
voting rights as shareholders
shareholders of the month with
42,998 57,530 0 of the end of the 0 holding 0
as of the end prior to the recovered
month prior to special voting
of the period disclosure voting rights
the disclosure right shares
date of as of the end
date of annual
annual of the period
report
report
Information of shareholders holding 5% or more of shares or top 10 shareholders
Name of Nature of Shareholdin Closing Increase or Quantity of Quantity of Pledged, marked or frozen
shareholders shareholder g percentage shareholding decrease restricted unrestricted Status Quantity
84
Mango Excellent Media Co., Ltd. Annual Report 2021
quantity shares held shares held
Mango Media State-owned 1,049,300,30
56.09% 0 849,019,732 200,280,569
Co., Ltd. legal person 1
Zhongyi
Capital State-owned
7.01% 131,188,792 +60,228,869 60,228,869 70,959,923
Holding legal person
Group Limited
Hunan Caixin
Jingguo
Equity State-owned
5.01% 93,647,857 +93,647,857 0 93,647,857
Investment legal person
Partnership
(LP)
Hong Kong
Securities
Foreign
Clearing 2.78% 52,033,005 +8,905,437 0 52,033,005
legal person
Company
Limited
China
Merchants
Bank Co., Ltd.
- Xingquan
Others 1.20% 22,359,381 +12,964,835 2,411,980 19,947,401
Herun Hybrid
Securities
Investment
Fund
China
Merchants
Bank Co., Ltd.
- Xingquan
Heyi Flexible
Others 0.96% 17,900,404 +4,811,180 2,411,981 15,488,423
Allocation
Hybrid
Securities
Investment
Fund (LOF)
Industrial and
Commercial
Bank of China
Others 0.91% 17,101,103 +14,144,130 7,428,228 9,672,875
Limited -
Lombarda
China Times
85
Mango Excellent Media Co., Ltd. Annual Report 2021
Pioneer Stock
Promoter
Securities
Investment
Fund
Industrial and
Commercial
Bank of China
Limited -
Xingquan
Green Others 0.67% 12,582,075 +9,254,137 1,561,489 11,020,586
Investment
Hybrid
Securities
Investment
Fund (LOF)
117 Portfolio
of the Social
Others 0.48% 9,049,621 +400,000 0 9,049,621
Security Fund
of the PRC
Industrial
Bank Co.,
Ltd.- Fullgoal
Xingyuan
Preferred
12-Month Others 0.47% 8,853,835 +8,853,835 0 8,853,835
Holding
Period Hybrid
Securities
Investment
Fund
Explanation for
There is no related-party relationship or concerted action relationship between the Mango Media Co., Ltd. as the
related-party relationship or
controlling shareholder of the Company and other top 10 unrestricted outstanding shareholders; it remains unknown
concerted actions of above
whether or not there is a related-party relationship or concerted action relationship among other top 10 shareholders.
shareholders
Explanation for
entrusting/accepting
entrusted voting rights and
N/A
waiver of voting rights
regarding above
shareholders
Shareholdings of top 10 unrestricted shareholders
86
Mango Excellent Media Co., Ltd. Annual Report 2021
Quantity of unrestricted shares held at the end of the Reporting Type
Name of shareholders
Period Type Quantity
RMB ordinary
Mango Media Co., Ltd. 200,280,569 200,280,569
shares
Hunan Caixin Jingguo
RMB ordinary
Equity Investment 93,647,857 93,647,857
shares
Partnership (LP)
Zhongyi Capital Holding RMB ordinary
70,959,923 70,959,923
Group Limited shares
Hong Kong Securities RMB ordinary
52,033,005 52,033,005
Clearing Company Limited shares
China Merchants Bank Co.,
Ltd. - Xingquan Herun RMB ordinary
19,947,401 19,947,401
Hybrid Securities shares
Investment Fund
China Merchants Bank Co.,
Ltd. - Xingquan Heyi
RMB ordinary
Flexible Allocation Hybrid 15,488,423 15,488,423
shares
Securities Investment Fund
(LOF)
Industrial and Commercial
Bank of China Limited -
RMB ordinary
Xingquan Green Investment 11,020,586 11,020,586
shares
Hybrid Securities
Investment Fund (LOF)
Industrial and Commercial
Bank of China Limited -
RMB ordinary
Lombarda China Times 9,672,875 9,672,875
shares
Pioneer Stock Promoter
Securities Investment Fund
117 Portfolio of the Social RMB ordinary
9,049,621 9,049,621
Security Fund of the PRC shares
Industrial Bank Co., Ltd.-
Fullgoal Xingyuan Preferred
RMB ordinary
12-Month Holding Period 8,853,835 8,853,835
shares
Hybrid Securities
Investment Fund
Explanation for
There is no related-party relationship or concerted action relationship between the Mango Media Co., Ltd. as the
related-party relationship or
controlling shareholder of the Company and other top 10 unrestricted outstanding shareholders; it remains unknown
concerted actions between
whether or not there is a related-party relationship or concerted action relationship among top 10 unrestricted outstanding
top 10 unrestricted
87
Mango Excellent Media Co., Ltd. Annual Report 2021
outstanding shareholders, shareholders and between top 10 unrestricted outstanding shareholders and top 10 shareholders.
and between top 10
unrestricted outstanding
shareholders and top 10
shareholders
Whether the Company has made arrangement for voting right differences
□ Applicable √ N/A
Whether the Company’s top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders have engaged in an agreed
repurchase transaction during the Reporting Period
□ Yes √ No
The Company’s top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders have no agreed repurchase transaction
during the Reporting Period.
2. The Company’s controlling shareholder
Nature of the controlling shareholder: local state-owned holding company
Type of the controlling shareholder: legal person
Legal
Controlling representative/ Date of
Organization code Principal activities
shareholder responsible incorporation
person
Planning, production and operation of radio and
television programs; investments in culture, sports,
entertainment, media, technology, internet and
other industries by self-owned funds (excluding
national financial supervision and financial credit
Mango Media Co., businesses such as deposit absorption, fund
ZHANG Huali July 10, 2007 914300006707880875
Ltd. collection, entrusted loans, notes, and loans
issuance); advertising planning, production and
operation; multimedia technology development
and operation. (Projects required for legal approval
shall be operated on the premise of being approved
by relevant authorities)
Change of the controlling shareholder during the Reporting Period
□ Applicable √ N/A
The Company has not changed the controlling shareholder during the Reporting Period.
3. The Company’s actual controller and its acting-in-concert parties
Nature of the actual controller: local state capital management institution
Type of the controlling shareholder: legal person
Actual controller Legal Date of Organization code Principal activities
88
Mango Excellent Media Co., Ltd. Annual Report 2021
representativ incorporation
e/responsible
person
Broadcasting news and other information,
and television programs to promote social,
economic and cultural development; news,
thematic, literary, and artistic broadcasts,
consulting services, advertising,
GONG January 25, broadcasting technical services,
Hunan Broadcasting System 12430000444877954G
Zhengwen 2010 broadcasting research, broadcast business
training, 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 actual relationship between Hunan Broadcasting System and Hunan TV & Broadcast Intermediary Co.,
controller during the Ltd., the actual controller, and its subordinate companies hold no shares in Hunan TV & Broadcast
Reporting Period Intermediary Co., Ltd.
Change of the actual controller during the Reporting Period
□ Applicable √ N/A
The Company has not changed the actual controller during the Reporting Period
Block diagram for the ownership and controlling relationship between the Company and the actual controller
Hunan Broadcasting System
100% shares
Mango Media Co., Ltd.
56.09 % shares
Mango Excellent Media Co., Ltd..
The Company is controlled by the actual controller through trust funds or other asset management methods
□ Applicable √ N/A
89
Mango Excellent Media Co., Ltd. Annual Report 2021
4. The controlling shareholder or the largest shareholder of the Company and its acting-in-concert parties
have pledged 80% of the number of shares held by them
□ Applicable √ N/A
5. Other legal person shareholders with more than 10% shares in the Company
□ Applicable √ N/A
6. Restriction on reduction of shares to the controlling shareholder, the actual controller, the restructuring
party, and other committed entity
□ Applicable √ N/A
IV. Practical implementation of share repurchase during the reporting period
Implementation progress of share repurchase
□ Applicable √ N/A
Progress of reducing repurchased shares by means of centralized auction trading
□ Applicable √ N/A
90
Mango Excellent Media Co., Ltd. Annual Report 2021
Section VIII Preferred Shares
□ Applicable √ N/A
The Company has no preferred shares during the Reporting Period.
91
Mango Excellent Media Co., Ltd. Annual Report 2021
Section IX Bonds
□ Applicable √ N/A
92
2021 Annual Report of Mango Excellent Media Co., Ltd.
Section X Financial Report
I. Auditor’s Report
Audit opinion Unmodified Opinion
Signing date of audit report April 21, 2022
Auditor Pan-China Certified Public Accountants LLP
Auditor’s report document number Tian Jian Shen [2022] No. 2-191
Name of certified public accountants LIU Gangyue and ZHANG Hong
Auditor’s Report
To all shareholders of Mango Excellent Media Co., Ltd.:
I. Audit opinion
We have audited the financial statements of Mango Excellent Media Co., Ltd. (“Mango Excellent Media”), which comprise the
consolidated and the parent company’s balance sheets as at December 31, 2021, and the consolidated and the parent company’s
income statements, the consolidated and the parent company’s statements of cash flow and the consolidated and the parent
company’s statements of changes in owners’ equity for the year then ended, and the notes to the financial statements.
In our opinion, the accompanying financial statements are prepared in all material respects in accordance with Accounting
Standards for Business Enterprises and fairly present the consolidated and the parent company’s financial position as of December 31,
2021, and the consolidated and the parent company’s operating results and cash flows for the year then ended.
II. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further
described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of
Mango Excellent Media in accordance with the Code of Ethics for Chinese Institute of Certified Public Accountants (“the Code”),
and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, are of most significance in our audit of the financial
statements for the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not express a separate opinion on these matters.
(I) Revenue recognition
1. Descriptions
Details of relevant information are disclosed in Note III (XXII), V(II)1 and XIII(II) to the financial statements.
The operating income of Mango Excellent Media is mainly from new media platform operation, new media interactive
entertainment content production and content e-businesses, etc. In 2021, the operating income of Mango Excellent Media amounted
to RMB15,355,863,500.00, of which the operating income from the segments including new media platform operation and new
media interactive entertainment content production amounted to RMB 13,138,707,800.00, accounting for 85.56% 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.
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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) The carrying amount of content copyrights
1. Descriptions
Details of relevant information are disclosed in Note III (XI), (XVII)and Note V(I) 8 and 14 to the financial statements.
As of December 31, 2021, the carrying amount of Mango Excellent Media’s content copyrights such as online information
dissemination rights, screenplays, and film and television series was RMB7,906,817,800; of which, intangible assets were RMB
6,296,622,200 and stocks were RMB 1,610,195,600.
The management makes significant judgment to evaluate the carrying amount of content copyrights such as online information
dissemination rights, screenplays, and film and television series. In making such evaluation, the management considers all possible
factors that may affect the future broadcasting, production and distribution plans of the content copyrights such as the online
information dissemination rights, screenplays and film and television series, the saleable or booking prices of film and television
series, the discount rate and the current market environment to judge the expectation of obtaining future cash flows. The amount of
content copyrights such as online information dissemination rights, screenplays, and film and television series is material, and
involves significant management judgments, therefore, we identify the carrying amount of content copyrights such as online
information dissemination rights, screenplays, and film and television series as a key audit matter.
2. Audit response
For the carrying amount of content copyrights such as online information dissemination rights, screenplays, and film and
television series, our audit procedures include, inter alia:
(1) Understand the key internal controls related to content copyrights such as online information dissemination rights,
screenplays, and film and television series, evaluate the design of those controls, determine whether they are implemented, and test
the operational effectiveness of the relevant internal controls;
(2) Know and evaluate the reasonableness of amortization policies of online information dissemination rights, and implement
computer-aided audit procedure for amortization information system of online information dissemination rights;
(3) Evaluate the reasonableness of accounting policies related to content copyrights such as online information dissemination
rights, screenplays, and film and television series by comparing relevant accounting standards and industry practice benchmarks, and
test the management’s assessment of the recoverable amount of content copyrights such as online information dissemination rights,
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screenplays, and film and television series on a sample basis based on the materiality level of the closing balance of net value of
content copyrights such as online information dissemination rights, screenplays, and film and television series;
(4) Inspect relevant agreements for the purchase of content copyrights such as online information dissemination rights, and
screenplays, and verify the valid period of their licenses to evaluate the reasonableness of their net realizable values. For
self-produced film and television series, select samples and discuss with the management to understand the current market
environment, their future production and distribution plans;
(5) Inspect distribution contracts to verify the estimated selling price of content rights such as online information dissemination
rights, screenplays, and film and television series. For television series that have been produced but have not obtained broadcast
licenses, we select samples to compare their projected selling prices with the selling prices available to similar television series, so as
to assess their impairment;
(6) Pay attention to public opinion of content rights such as online information dissemination rights, screenplays, and film and
television series, assessing their negative public opinion and discussing with the management that whether there is an expected
withdrawal or failure to complete production;
(7) Check whether information relating to impairment and copyright amortization of content rights such as online information
dissemination rights, screenplays, and film and television series is properly presented and disclosed in the financial statements;
IV. Other Information
The management is responsible for other information. The other information comprises the information included in the Annual
Report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is any material misstatement of other information, we are
required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The management of Mango Excellent Media is responsible for the preparation and fair presentation of the financial statements
in accordance with Accounting Standards for Business Enterprises, and designing, implementing, and maintaining internal control
that is necessary to enable the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing Mango Excellent Media’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the management either intends to liquidate Mango Excellent Media or to cease operations, or have no realistic alternative but to do
so.
Those charged with governance of Mango Excellent Media (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:
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(I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, 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 accounting estimates and related
disclosures made by the management.
(IV) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Mango
Excellent Media’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Mango Excellent Media to cease to continue as a going concern.
(V) Evaluate the overall presentation, structure, and content of the financial statements and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation;
(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities
within the Mango Excellent Media to express an opinion on the financial statements. We are responsible for the direction,
supervision, and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements for the current period and are therefore key audit matters. We describe these matters in our
audit report unless laws or regulations preclude public disclosure of the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Pan-China Certified Public Accountants LLP Certified Public Accountant: LIU Gangyue
(Engagement Partner)
Hangzhou, China Certified Public Accountant: ZHANG Hong
April 21, 2022
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.
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In RMB
Item December 31, 2021 December 31, 2020
Current Assets
Cash and bank balances 6,974,465,151.81 5,336,319,786.70
Balances with clearing agencies
Placements with banks and other
financial institutions
Held-for-trading financial assets 3,410,000,000.00
Derivative financial assets
Notes receivable 673,742,339.23
Accounts receivable 3,113,742,914.88 2,976,696,672.95
Receivable financing 137,800,000.00 164,410,000.00
Prepayments 1,834,350,013.20 1,398,350,153.72
Premium receivable
Amounts receivable under reinsurance
contracts
Reinsurer’s share of insurance contract
reserves
Other receivables 40,568,403.37 51,168,090.47
Including: dividends receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 1,689,546,700.79 1,660,324,608.09
Contract assets 903,053,743.61 817,451,396.56
Held-for-sale assets
Non-current assets due within one year
Other current assets 123,539,219.25 520,087,664.20
Total current assets 18,900,808,486.14 12,924,808,372.69
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 23,882,517.37 22,882,969.51
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Other investments in equity instruments
Other non-current financial assets
Investment properties
Fixed assets 184,450,336.98 186,924,296.25
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets 210,304,495.42
Intangible assets 6,443,675,155.95 5,894,454,399.68
Development expenditure 232,522,753.24 157,264,231.85
Goodwill
Long-term prepaid expenses 113,847,481.21 77,342,051.99
Deferred income tax assets
Other non-current assets 1,260,178.59 2,023,481.01
Total non-current assets 7,209,942,918.76 6,340,891,430.29
Total assets 26,110,751,404.90 19,265,699,802.98
Current liabilities:
Short term borrowings 39,786,903.37 39,789,110.68
Loans from the central bank
Taking from banks and other financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 921,504,704.91 712,292,035.75
Accounts payable 4,960,935,241.83 5,217,087,330.62
Receipts in advance
Contract liabilities 1,327,294,063.85 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 980,394,114.20 856,712,827.84
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Taxes payable 123,474,589.72 131,527,885.95
Other payables 149,086,160.61 160,651,194.91
Including: interest payable
Dividends payable
Fees and commissions payable
Amounts payable under reinsurance
contracts
Held-for-sale liabilities
Non-current liabilities due within one
43,098,562.04
year
Other current liabilities 339,035,557.99 138,698,825.59
Total current liabilities 8,884,609,898.52 8,587,234,234.44
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 169,643,622.50
Long-term payables
Long-term employee benefits payable
Provisions 13,815,868.00 8,305,486.15
Deferred income 45,517,771.81 48,938,835.69
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 228,977,262.31 57,244,321.84
Total liabilities 9,113,587,160.83 8,644,478,556.28
Owner’s equity
Share capital 1,870,720,815.00 1,780,377,511.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserve 9,244,386,503.55 4,838,937,706.35
Less: treasury shares
Other comprehensive income -13,783.18 -2,759.37
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Special reserve
Surplus reserve 105,025,383.29 87,139,560.14
General risk reserve
Undistributed profit 5,746,281,439.57 3,881,526,167.30
Total owners’ equity attributable to
16,966,400,358.23 10,587,978,185.42
equity holders of the parent company
Minority interests 30,763,885.84 33,243,061.28
Total owners’ equity 16,997,164,244.07 10,621,221,246.70
Total liabilities and owners’ equity 26,110,751,404.90 19,265,699,802.98
Legal representative: ZHANG Huali Chief financial officer: LIANG Deping Head of accounting department: TAO Jinyu
2. Balance sheet of the parent company
In RMB
Item December 31, 2021 December 31, 2020
Current Assets
Cash and bank balances 593,199,335.20 405,729,095.82
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivable financing
Prepayments 746,648.08 270,000.00
Other receivables 330,099,116.90 260,068,347.20
Including: dividends receivable
Dividends receivable 250,000,000.00
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 2,989,471.09 3,194,254.68
Total current assets 927,034,571.27 669,261,697.70
Non-current assets:
Debt investments
Other debt investments
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Long-term receivables
Long-term equity investments 11,976,375,839.55 7,780,583,738.35
Other investments in equity instruments
Other non-current financial assets
Investment properties
Fixed assets 852,797.16 1,305,884.91
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets 8,919,029.19
Intangible assets 714,278.56 803,907.00
Development expenditure
Goodwill
Long-term prepaid expenses 4,785,543.89 5,579,058.77
Deferred income tax assets
Other non-current assets
Total non-current assets 11,991,647,488.35 7,788,272,589.03
Total assets 12,918,682,059.62 8,457,534,286.73
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 39,647,064.37 31,708,478.30
Taxes payable 624,511.69 545,679.40
Other payables 8,598,711.22 7,672,949.27
Including: interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one
1,524,817.62
year
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Other current liabilities
Total current liabilities 50,395,104.90 39,927,106.97
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 7,478,518.73
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 7,478,518.73
Total liabilities 57,873,623.63 39,927,106.97
Owner’s equity
Share capital 1,870,720,815.00 1,780,377,511.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserve 10,584,782,807.56 6,179,334,010.36
Less: treasury shares
Other comprehensive income
Special reserve
Surplus reserve 105,025,383.29 87,139,560.14
Undistributed profit 300,279,430.14 370,756,098.26
Total owners’ equity 12,860,808,435.99 8,417,607,179.76
Total liabilities and owners’ equity 12,918,682,059.62 8,457,534,286.73
3. Consolidated income statement
In RMB
Item 2021 2020
I. Total operating income 15,355,863,482.07 14,005,534,955.36
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including: operating income 15,355,863,482.07 14,005,534,955.36
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 13,268,399,151.99 12,143,647,482.17
Including: operating costs 9,905,462,770.82 9,230,288,644.44
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 26,892,490.52 21,977,750.48
Selling expenses 2,469,328,212.64 2,164,415,269.87
General and administrative expenses 695,934,611.78 629,200,722.73
Research and development expenses 271,991,403.40 184,384,948.72
Financial expenses -101,210,337.17 -86,619,854.07
Including: interest expenses 2,630,663.17 13,532,130.10
Interest income 125,145,189.95 116,608,027.80
Add: other income 123,334,219.55 152,751,572.29
Investment income (Loss is indicated by
37,229,498.93 80,792,516.40
“-”)
Including: income from investments in
999,547.86 72,125,990.33
associates and joint ventures
Income from derecognition of financial
assets measured at amortized cost
Foreign exchange gains (Loss is
indicated by “-”)
Net exposure hedging income (Loss is
indicated by “-”)
Income from changes in fair value (Loss
is indicated by “-”)
Impairment losses of credit (Loss is -43,921,867.09 -52,586,997.38
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2021 Annual Report of Mango Excellent Media Co., Ltd.
indicated by “-”)
Impairment losses of assets (Loss is
-68,086,394.50 -36,801,884.43
indicated by “-”)
Income from disposal of assets (Loss is
-85,941.70 354,684.48
indicated by “-”)
III. Operating profit (Loss is indicated by
2,135,933,845.27 2,006,397,364.55
“-”)
Add: non-operating income 21,850,496.77 26,886,284.35
Less: non-operating expenses 43,300,269.96 46,535,880.99
IV. Total profit (Total losses are indicated
2,114,484,072.08 1,986,747,767.91
by “-”)
Less: income tax expense 4,357.00 7,411,218.58
V. Net profit (Net loss is indicated by
2,114,479,715.08 1,979,336,549.33
“-” )
(I) Categorized by the nature of
continuing operation
1. Net profit from continuing operations
2,113,148,651.46 1,975,807,519.82
(Net loss is indicated by “-”)
2. Net profit from discontinued
1,331,063.62 3,529,029.51
operations (Net loss is indicated by “-”)
(II) Categorized by ownership:
1.Net profit attributable to shareholders
2,114,090,171.85 1,982,159,476.82
of the parent company
2.Profit or loss attributable to minority
389,543.23 -2,822,927.49
interests
VI. Other comprehensive income, net of
-11,023.81 -2,759.37
tax
Other comprehensive income attributable
to owners of the parent company, net of -11,023.81 -2,759.37
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
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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
-11,023.81 -2,759.37
will be reclassified to profit or loss
1. Other comprehensive income that will
be reclassified to profit or loss under the
equity method
2. Changes in fair value of other debt
investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment of
other debt investments
5. Reserve for cash flow hedges
6. Translation differences of financial
statements denominated in foreign -11,023.81 -2,759.37
currencies
7.Others
Other comprehensive income
attributable to minority interests, net of
tax
VII. Total comprehensive income 2,114,468,691.27 1,979,333,789.96
Total comprehensive income attributable
2,114,079,148.04 1,982,156,717.45
to owners of the parent company
Total comprehensive income attributable
389,543.23 -2,822,927.49
to minority interests
VIII. Earnings per share:
(I) Basic earnings per share 1.17 1.11
(II) Diluted earnings per share 1.17 1.11
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
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4. Income statement of the parent company
In RMB
Item 2021 2020
I. Operating income 0.00 0.00
Less: Total operating costs 0.00 0.00
Taxes and levies 1,899,087.62 6,923.08
Selling expenses
General and administrative expenses 99,902,232.40 72,126,384.06
Research and development expenses
Financial expenses -25,837,827.24 -26,287,586.49
Including: interest expenses
Interest income 26,073,238.54 26,296,386.01
Add: other income 11,246.72 227,348.06
Investment income (Loss is indicated
254,810,066.45 69,864,747.18
by “-”)
Including: income from investments in
69,864,747.18
associates and joint ventures
Income from derecognition of financial
assets measured at amortized cost (Loss
is indicated by “-”)
Net exposure hedging income (Loss is
indicated by “-”)
Income from changes in fair value
(Loss is indicated by “-”)
Impairment losses of credit (Loss is
410.99 -1,040.99
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
178,858,231.38 24,245,333.60
by “-”)
Add: non-operating income 0.08 20,000.74
Less: non-operating expenses 692,950.00
III. Total profit (Loss is indicated by
178,858,231.46 23,572,384.34
“﹣”)
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Less: income tax expense
IV. Net profit (Net loss is indicated by
178,858,231.46 23,572,384.34
“-” )
(I) Net profit from continuing
178,858,231.46 23,572,384.34
operations (Net loss is indicated by “-”)
(II) Net profit from discontinued
operations (Net loss is indicated by “-”)
V. Other comprehensive income, net of
tax
(I) Other comprehensive income that
cannot be subsequently reclassified to
profit or loss
1. Changes from re-measurement of
defined benefit plans
2. Other comprehensive income that
cannot be reclassified to profit or loss
under the equity method
3. Changes in fair value of other
investments in equity instruments
4. Changes in fair value of enterprises’
own credit risks
5.Others
(II) Other comprehensive income that
will be reclassified to profit or loss
1. Other comprehensive income that
will be reclassified to profit or loss
under the equity method
2. Changes in fair value of other debt
investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment of
other debt investments
5. Reserve for cash flow hedges
5.Translation differences of financial
statements denominated in foreign
currencies
7.Others
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VI. Total comprehensive income: 178,858,231.46 23,572,384.34
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated statements of cash flows
In RMB
Item 2021 2020
I. Cash Flows from Operating
Activities:
Cash receipts from the sale of goods
14,751,013,340.67 13,100,389,646.19
and the rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from the central
bank
Net increase in taking from banks and
other financial institutions
Cash receipts from premiums under
direct insurance contracts
Net cash receipts from reinsurance
business
Net cash receipts from policyholders’
deposits and investment contract
liabilities
Cash receipts from interest, fees and
commissions
Net increase in taking from banks and
other financial institutions
Net increase in financial assets sold
under repurchase arrangements
Net cash received from securities
trading agency
Receipts of tax refunds 1,996,750.43 2,974,027.99
Other cash receipts relating to operating
195,137,982.95 253,669,222.21
activities
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Sub-total of cash inflows from
14,948,148,074.05 13,357,032,896.39
operating activities
Cash payments for goods purchased and
10,601,434,852.06 9,520,378,278.33
services received
Net increase in loans and advances to
-24,141,357.18 11,344,610.37
customers
Net increase in balance with the central
bank and due from banks and other
financial institutions
Cash payments for claims and
policyholders’ benefits under direct
insurance contracts
Net increase in placements with banks
and other financial institutions
Cash payments for interest, fees and
commissions
Cash payments for insurance
policyholder dividends
Cash payments to and on behalf of
1,652,192,693.42 1,280,202,698.37
employees
Payment of various types of taxes 161,767,416.65 176,899,520.26
Other cash payments relating to
1,995,093,586.73 1,787,237,435.98
operating activities
Sub-total of cash outflows from
14,386,347,191.68 12,776,062,543.31
operating activities
Net cash flow from operating activities 561,800,882.37 580,970,353.08
II. Cash flows from investing activities:
Cash receipts from disposals and
259,679,200.00
recovery of investments
Cash receipts from investment income 560,366.45
Net cash receipts from disposals of
fixed assets, intangible assets and other 986,465.39 403,685.56
long-term assets
Net cash receipts from disposals of
245,559,897.67
subsidiaries and other business entities
Other cash receipts relating to investing
5,491,458,753.41 626,406,349.28
activities
Sub-total of cash inflows from investing 5,738,565,482.92 886,489,234.84
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2021 Annual Report of Mango Excellent Media Co., Ltd.
activities
Cash payments to acquire or construct
fixed assets, intangible assets and other 193,602,527.81 69,959,021.89
long-term assets
Cash payments to acquire investments
Net increase in pledged loans receivable
Net cash payments for acquisitions of
1,486,980.09
subsidiaries and other business entities
Other cash payments relating to
8,736,000,000.00 622,500,000.00
investing activities
Sub-total of cash outflows from
8,931,089,507.90 692,459,021.89
investing activities
Net Cash Flow from Investing
-3,192,524,024.98 194,030,212.95
Activities
III. Cash Flows from Financing
Activities:
Cash receipts from investments by
4,496,792,425.07
others
Including: cash received by subsidiaries
from minority shareholders’
investments
Cash receipts from borrowings 69,731,500.00 160,436,700.00
Other cash receipts relating to financing
activities
Sub-total of cash inflows from
4,566,523,925.07 160,436,700.00
financing activities
Cash repayments of borrowings 39,631,527.65 470,057,800.00
Cash payments for distribution of
dividends or profits or settlement of 234,040,696.91 192,215,024.91
interest expenses
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to
65,826,408.71
financing activities
Sub-total of cash outflows from
339,498,633.27 662,272,824.91
financing activities
Net cash flow from financing activities 4,227,025,291.80 -501,836,124.91
IV. Effect of foreign exchange rate 612,280.98 223,543.73
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2021 Annual Report of Mango Excellent Media Co., Ltd.
changes on cash and cash equivalents
V. Net increase in cash and cash
1,596,914,430.17 273,387,984.85
equivalents
Add: opening balance of cash and cash
5,314,463,484.01 5,041,075,499.16
equivalents
VI. Closing balance of cash and cash
6,911,377,914.18 5,314,463,484.01
equivalents
6. Statement of cash flows of the parent company
In RMB
Item 2021 2020
I. Cash Flows from Operating
Activities:
Cash receipts from the sale of goods
and the rendering of services
Receipts of tax refunds 1,996,750.43
Other cash receipts relating to operating
211,758,714.55 41,857,033.57
activities
Sub-total of cash inflows from
213,755,464.98 41,857,033.57
operating activities
Cash payments for goods purchased and
services received
Cash payments to and on behalf of
49,283,696.15 33,162,880.94
employees
Payment of various types of taxes 1,899,087.70
Other cash payments relating to
46,516,142.78 42,247,660.59
operating activities
Sub-total of cash outflows from
97,698,926.63 75,410,541.53
operating activities
Net cash flow from operating activities 116,056,538.35 -33,553,507.96
II. Cash flows from investing activities:
Cash receipts from disposals and
304,249,700.00 259,679,200.00
recovery of investments
Cash receipts from investment income 560,366.45
Net cash receipts from disposals of
fixed assets, intangible assets and other
long-term assets
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Net cash receipts from disposals of
subsidiaries and other business entities
Other cash receipts relating to investing
activities
Sub-total of cash inflows from investing
304,810,066.45 259,679,200.00
activities
Cash payments to acquire or construct
fixed assets, intangible assets and other 306,134.50 2,206,642.91
long-term assets
Cash payments to acquire investments 4,495,792,101.20
Net cash payments for acquisitions of
subsidiaries and other business entities
Other cash payments relating to
investing activities
Sub-total of cash outflows from
4,496,098,235.70 2,206,642.91
investing activities
Net Cash Flow from Investing
-4,191,288,169.25 257,472,557.09
Activities
III. Cash Flows from Financing
Activities:
Cash receipts from investments by
4,496,792,425.07
others
Cash receipts from borrowings
Other cash receipts relating to financing
activities
Sub-total of cash inflows from
4,496,792,425.07
financing activities
Cash repayments of borrowings
Cash payments for distribution of
dividends or profits or settlement of 231,449,076.43 178,037,751.10
interest expenses
Other cash payments relating to
2,641,478.36
financing activities
Sub-total of cash outflows from
234,090,554.79 178,037,751.10
financing activities
Net cash flow from financing activities 4,262,701,870.28 -178,037,751.10
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
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V. Net increase in cash and cash
187,470,239.38 45,881,298.03
equivalents
Add: opening balance of cash and cash
405,729,095.82 359,847,797.79
equivalents
VI. Closing balance of cash and cash
593,199,335.20 405,729,095.82
equivalents
7. Consolidated statement of changes in owners’ equity
Amount in the current period
In RMB
2021
Equity attributable to owners of the parent company
Other equity
Item Other
instruments Less: General Minority
Share Capital compreh Special Surplus Undistribu Other Sub-tota Total owners’ equity
Treasury risk interests
Prefer Perpet
capital reserve ensive reserve reserve ted profits s l
ence ual Others shares reserve
income
shares bonds
4,838, 87,139 10,587
I. Closing balance of 1,780,37 -2,759. 3,881,52 33,243,
937,70 ,560.1 ,978,1 10,621,221,246.70
the preceding year 7,511.00 37 6,167.30 061.28
6.35 4 85.42
Add: Changes in
accounting policies
Corrections of prior
period errors
Business combination
involving enterprises
under common control
Others
4,838, 87,139 10,587
II. Opening balance of 1,780,37 -2,759. 3,881,52 33,243,
937,70 ,560.1 ,978,1 10,621,221,246.70
the current year 7,511.00 37 6,167.30 061.28
6.35 4 85.42
III. Changes for the 4,405, 17,885 6,378,
90,343,3 -11,02 1,864,75 -2,479,1
year (decrease is 448,79 ,823.1 422,17 6,375,942,997.37
04.00 3.81 5,272.27 75.44
indicated by “-”) 7.20 5 2.81
(I) Total 2,114,
-11,02 2,114,09 389,543
comprehensive 079,14 2,114,468,691.27
3.81 0,171.85 .23
income 8.04
(II) Owners’ 4,405, 4,495,
90,343,3 -2,868,7 4,492,923,382.53
contributions and 448,79 792,10
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2021 Annual Report of Mango Excellent Media Co., Ltd.
reduction in capital 04.00 7.20 1.20 18.67
4,405, 4,495,
1． Ordinary shares 90,343,3 -2,868,7
448,79 792,10 4,492,923,382.53
contributed by owners 04.00 18.67
7.20 1.20
2．Capital contribution
from holders of other
equity instruments
3. Share-based
payment recognized in
owners’ equity
4. Others
17,885 -231,4
-249,334
(III) Profit distribution ,823.1 49,076 -231,449,076.43
,899.58
5 .43
17,885
1. Transfer to surplus -17,885,
,823.1
reserve 823.15
5
2. Transfer to general
risk reserve
-231,4
3. Distributions to -231,449
49,076 -231,449,076.43
owners (shareholders) ,076.43
.43
4. Others
(IV) Transfers within
owners’ equity
1. Capitalization of
capital reserve
2. Capitalization of
surplus reserve
3. Loss offset by
surplus reserve
4.Retained earnings
carried forward from
changes in defined
benefit plans
5. Retained earnings
carried forward from
other comprehensive
income
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6.Others
(V) Special reserve
1. Transfer to special
reserve in the period
2. Amount utilized in
the period
(VI) Others
9,244, 105,02 16,966
IV. Closing balance of 1,870,72 -13,78 5,746,28 30,763,
386,50 5,383. ,400,3 16,997,164,244.07
the current period 0,815.00 3.18 1,439.57 885.84
3.55 29 58.23
Amount in prior period
In RMB
2020
Equity attributable to owners of the parent company
Other equity Other
Minorit
instruments Less: compr
Item y Total owners’
Specia Surplu Genera Undist
Share Prefe Perp Capital Treasu ehensi Sub-to
l s l risk ributed Others interest equity
capital rence etual Other reserve ry ve tal
reserve reserve reserve profits s
share bond s shares incom
s s e
4,838, 84,782 2,079, 8,783,
I. Closing balance of 1,780,37 36,098,
937,70 ,321.7 761,68 859,21 8,819,957,384.07
the preceding year 7,511.00 165.00
6.35 1 0.01 9.07
Add: Changes in
accounting policies
Corrections of prior
period errors
Business
combination
involving
enterprises under
common control
Others
4,838, 84,782 2,079, 8,783,
II. Opening balance 1,780,37 36,098,
937,70 ,321.7 761,68 859,21 8,819,957,384.07
of the current year 7,511.00 165.00
6.35 1 0.01 9.07
III. Changes for the 1,801, 1,804,
-2,759. 2,357, -2,855,
year (decrease is 764,48 118,96 1,801,263,862.63
37 238.43 103.72
indicated by “-”) 7.29 6.35
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2021 Annual Report of Mango Excellent Media Co., Ltd.
(I) Total 1,982, 1,982,
-2,759. -2,822,
comprehensive 159,47 156,71 1,979,333,789.96
37 927.49
income 6.82 7.45
(II) Owners’
-32,176
contributions and -32,176.23
.23
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
-32,176
4. Others -32,176.23
.23
-180,3 -178,0
(III) Profit 2,357,
94,989 37,751 -178,037,751.10
distribution 238.43
.53 .10
1. Transfer to 2,357, -2,357,
surplus reserve 238.43 238.43
2. Transfer to
general risk reserve
3. Distributions to -178,0 -178,0
owners 37,751 37,751 -178,037,751.10
(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
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2021 Annual Report of Mango Excellent Media Co., Ltd.
from changes in
defined benefit
plans
5. Retained earnings
carried forward
from other
comprehensive
income
6.Others
(V) Special reserve
1. Transfer to
special reserve in
the period
2. Amount utilized
in the period
(VI) Others
4,838, 87,139 3,881, 10,587
IV. Closing balance 1,780,37 -2,759. 33,243,
937,70 ,560.1 526,16 ,978,1 10,621,221,246.70
of the current period 7,511.00 37 061.28
6.35 4 7.30 85.42
8. Statement of changes in owners’ equity of the parent company
Amount in the current period
In RMB
2021
Other equity
Other
instruments Less:
Item Share Capital compreh Special Surplus Undistribute Total owners’
Prefere Perpet Treasury Others
capital reserve ensive reserve reserve d profits equity
nce ual Others shares
income
shares bonds
I. Closing balance of 1,780,377,5 6,179,33 87,139,5 370,756,098
8,417,607,179.76
the preceding year 11.00 4,010.36 60.14 .26
Add: Changes in
accounting policies
Corrections of prior
period errors
Others
II. Opening balance of 1,780,377,5 6,179,33 87,139,5 370,756,098
8,417,607,179.76
the current year 11.00 4,010.36 60.14 .26
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2021 Annual Report of Mango Excellent Media Co., Ltd.
III. Changes for the
90,343,304. 4,405,44 17,885,8 -70,476,668.
year (decrease is 4,443,201,256.23
00 8,797.20 23.15 12
indicated by “-”)
(I) Total
178,858,231
comprehensive 178,858,231.46
.46
income
(II) Owners’
90,343,304. 4,405,44
contributions and 4,495,792,101.20
00 8,797.20
reduction in capital
1． Ordinary shares 90,343,304. 4,405,44
4,495,792,101.20
contributed by owners 00 8,797.20
2．Capital contribution
from holders of other
equity instruments
3. Share-based
payment recognized in
owners’ equity
4. Others
-249,334,89
(III) Profit distribution 17,885,8 -231,449,076.43
9.58
23.15
1. Transfer to surplus
17,885,8 -17,885,823.
reserve
23.15 15
3. Distributions to -231,449,07
-231,449,076.43
owners (shareholders) 6.43
3.Others
(IV) Transfers within
owners’ equity
1. Capitalization of
capital reserve
2. Capitalization of
surplus reserve
3. Loss offset by
surplus reserve
4.Retained earnings
carried forward from
changes in defined
benefit plans
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2021 Annual Report of Mango Excellent Media Co., Ltd.
5. Retained earnings
carried forward from
other comprehensive
income
6.Others
(V) Special reserve
1. Transfer to special
reserve in the period
2. Amount utilized in
the period
(VI) Others
10,584,7
IV. Closing balance of 1,870,720,8 105,025, 300,279,430
82,807.5 12,860,808,435.99
the current period 15.00 383.29 .14
6
Amount in prior period
In RMB
2020
Other equity
Other
instruments Less:
Item Share Capital compre Special Surplus Undistributed Total owners’
Prefer Perpet Treasur Others
capital reserve hensive reserve reserve profits equity
ence ual Others y shares
income
shares bonds
6,179,3
I. Closing balance of 1,780,377,5 84,782,
34,010. 527,578,703.45 8,572,072,546.52
the preceding year 11.00 321.71
36
Add: Changes in
accounting policies
Corrections of prior
period errors
Others
6,179,3
II. Opening balance 1,780,377,5 84,782,
34,010. 527,578,703.45 8,572,072,546.52
of the current year 11.00 321.71
36
III. Changes for the
2,357,2
year (decrease is -156,822,605.19 -154,465,366.76
38.43
indicated by “-”)
(I) Total
comprehensive 23,572,384.34 23,572,384.34
income
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2021 Annual Report of Mango Excellent Media Co., Ltd.
(II) Owners’
contributions and
reduction in capital
1． Ordinary shares
contributed by
owners
2．Capital
contribution from
holders of other
equity instruments
3. Share-based
payment recognized
in owners’ equity
4. Others
(III) Profit 2,357,2
-180,394,989.53 -178,037,751.10
distribution 38.43
1. Transfer to 2,357,2
-2,357,238.43
surplus reserve 38.43
3. Distributions to
owners -178,037,751.10 -178,037,751.10
(shareholders)
3.Others
(IV) Transfers
within owners’
equity
1. Capitalization of
capital reserve
2. Capitalization of
surplus reserve
3. Loss offset by
surplus reserve
4.Retained earnings
carried forward
from changes in
defined benefit
plans
5. Retained earnings
carried forward
from other
comprehensive
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2021 Annual Report of Mango Excellent Media Co., Ltd.
income
6.Others
(V) Special reserve
1. Transfer to
special reserve in
the period
2. Amount utilized
in the period
(VI) Others
6,179,3
IV. Closing balance 1,780,377,5 87,139,
34,010. 370,756,098.26 8,417,607,179.76
of the current period 11.00 560.14
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 RMB1,870,720,815.00 and a total of 1,870,720,815 shares (with the par value of RMB 1 per share) comprising
restricted outstanding A-share of 939,364,200 shares and unrestricted A-share of 931,356,700 shares as of December 31, 2021. The
Company’s shares were listed for trading on the Shenzhen Stock Exchange on January 21, 2015.
The Company is an entity engaged in the internet new media industry. Its principal operating activities can be divided into three
parts, namely new media platform operation, new media interactive entertainment content production and media retail business.
These financial statements were approved by the 8th meeting of the fourth board of directors of the Company on April 21, 2022
for issuance.
Twenty-seven companies including Hunantv.com Interactive Entertainment Media Co., Ltd. (hereinafter referred to as
“Hunantv.com”), Shanghai EE-Media Co., Ltd. (hereinafter referred to as “EE-Media”), and Happigo Co., Ltd. were included in the
scope of the consolidated financial statements for the current period. For details, please see Note VIII and Note IX to the Financial
Statements.
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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2021 Annual Report of Mango Excellent Media Co., Ltd.
V. Significant Accounting Policies and Accounting Estimates
Reminders on specific accounting policies and accounting estimates:
Notice: The Company has formulated the specific accounting policies and made the specific accounting estimates with respect to the
impairment of financial instruments, depreciation of fixed assets, depreciation of right of use assets, amortization of intangible assets,
recognition of revenues and other transactions and events according to the actual production and operation characteristics of the
Company.
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 combination involving enterprises 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 enterprises 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 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.
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2021 Annual Report of Mango Excellent Media Co., Ltd.
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
The asset and liability items in the balance sheet are translated at the spot exchange rates at the balance sheet date. The owners’
equity items other than “Undistributed profits” are translated at the spot exchange rates at the transaction dates. The income and
expense items in the income statements are translated at the spot exchange rates at the transaction dates. Exchange differences arising
from such translations are recognized in other comprehensive income.
10. Financial instruments
1. Classification of financial assets and financial liabilities
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2021 Annual Report of Mango Excellent Media Co., Ltd.
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 Standards for Business Enterprises No. 14 —Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains or losses on
financial assets at amortized cost that do not belong to any hedging relationship are recognized in profit or loss for the current period
upon derecognition, reclassification, amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value. Interest,
impairment losses or gains and exchange gains or losses calculated using the effective interest method are recognized in profit or loss
for the current period, and other gains or losses are recognized in other comprehensive income. On derecognition, the cumulative
gain or loss previously included in other comprehensive income is removed out from other comprehensive income and included in
profit or loss for the current period.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.
Dividends received (other than those received as recovery of investment cost) are recognized in profit or loss for the current period,
and other gains or losses are recognized in other comprehensive income. On derecognition, the cumulative gain or loss previously
included in other comprehensive income is removed out from other comprehensive income and included in retained earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon, including interest
and dividend income, are recognized in profit or loss for the current period, except the financial assets belonging to any hedging
relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including derivatives classified as
financial liabilities), and financial liabilities directly designated as at fair value through profit or loss. Such financial liabilities are
subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at fair value through profit or loss
arising out of changes in the Company’s credit risk are recognized in other comprehensive income, unless such treatment will result
in or increase any accounting mismatch in profit or loss. Other gains or losses on such financial liabilities, including interest expenses
and changes in fair value not arising out of changes in the Company’s credit risk, are recognized in profit or loss for the current
period, except the financial liabilities belonging to any hedging relationship. On derecognition, the cumulative gain or loss previously
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included in other comprehensive income is removed out from other comprehensive income and included in retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or continuing
involvement in the financial assets transferred
Such financial liabilities are measured in accordance with the Accounting Standards for Business Enterprises No. 23——Transfer of
Financial Assets.
3) Financial guarantee contracts not falling under items 1) and 2) above, and loan commitments not falling under item 1) above and
below market interest rate
Such financial liabilities are subsequently measured at the higher of ① provision for impairment losses determined according to the
policy for impairment of financial instruments; and ② balance of the initially recognized amount after deduction of the accumulated
amortization determined in accordance with Accounting Standards for Business Enterprises No. 14 —Revenue.
4) Financial liabilities at amortized cost
Such financial liabilities are measured at amortized cost using the effective interest method. Gains or losses on financial liabilities at
amortized cost that do not belong to any hedging relationship are recognized in profit or loss for the current period upon
derecognition or amortization using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognition of financial assets as set forth in
the Accounting Standards for Business Enterprises No. 23 -- Transfer of Financial Assets.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligations thereon have been discharged.
3. Determination and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewards incidental to the ownership of the
financial asset have been transferred, the financial asset is derecognized, and the rights and obligations incurred or retained in such
transfer are separately recognized as assets or liabilities (as the case may be). If the Company retains substantially all the risks and
rewards of ownership of a financial asset, the Company shall not derecognize the financial asset. If the Company retains substantially
all the risks and rewards of ownership of a financial asset, the Company shall not derecognize the financial asset. If the Company
neither transferred nor retained a substantial portion of all risks and rewards incidental to the ownership of the financial asset, then: (1)
if the Company does not retain control over the financial asset, the financial asset is derecognized, and the rights and obligations
incurred or retained in such transfer are separately recognized as assets or liabilities (as the case may be); and (2) if the Company
retains control over the financial asset, the financial asset continues to be recognized to the extent of the Company’s continuing
involvement in the financial asset transferred, and a corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between (1) the carrying 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
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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 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.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
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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
Item Basis for grouping Method for measuring expected credit losses
Other receivables - group of receivables from Nature of receivables Calculate the expected credit losses according to
related parties controlled by the same actual the default risk exposure and rate of expected
controller credit loss within the next 12 months or lifetime
Other receivables - group of deposit and security expected credit losses by reference to historic
receivable credit loss experience, and taking into account
Other receivables - grouping by age Aging the current situations and 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
Item Basis for grouping Method for measuring expected credit losses
Notes receivable - banker’s acceptance Type of notes Calculate the expected credit losses according to the
bills default risk exposure and lifetime expected credit losses
Notes receivable - commercial by reference to historic credit loss experience, and
acceptance bills receivable taking into account the current situations and prediction
Accounts receivables - group of Group of receivables from of future economic conditions.
receivables from related parties related parties controlled by
controlled by the same actual the same actual controller
controller
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 Loans and advances to Calculate the expected credit losses according to the
advances to customers customers default risk exposure and lifetime expected credit losses
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 the default
business 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
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Aging Accounts receivable
Rate of expected credit loss (%)
Group I: Mango TV Internet Video Business (Hunantv.com)
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
Over 5 years 100.00
Group II: New media interactive entertainment production and operation, , content
e-business and others (companies other than Hunantv.com)
Within 1 year (inclusive, same below) 1.00
More than 1 year but not exceeding 2 years 5.00
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
Over 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 for “Internet Video Business” set forth in the Guide on Self-regulatory
Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 – Disclosure of Industry Information by the Companies
Listed on the ChiNext Board.
1. Classification of inventories
Inventories include finished goods or merchandise held by the Company for sale in the ordinary course of business, or work in
progress in the process of production for such sale, or materials or supplies to be consumed in the production process or in the
rendering of services.
2. Pricing methods of inventories transferred out
When transferring out inventories, the Company determines the actual cost of automobile, film and television drama and
consignment goods using the specific-identification method and of the remaining goods using the weighted moving average method.
3. Determination 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 net realizable 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 net realizable value is determined at the estimated selling price of finished products less the estimated costs of
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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 net realizable
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 film and television series.
5. Amortization of low-value consumables and packing materials
(1) Low-value consumables
The packing materials are amortized using immediate write-off method.
(2) Packing materials
The packing materials are amortized using immediate write-off method.
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 net contract assets and liabilities under the same contract 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 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 the provision for
impairment originally made and include it in the profit or loss for the current period, provided that the carrying amount after reversal
shall not exceed the carrying amount the asset would have reached on the date of reversal had the provision for impairment been not
made.
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14. Long-term equity investments
1. Judgment criteria of joint control and significant influence
Joint control is the agreed sharing of control over an arrangement, and the decision in relation to the relevant activities of such
arrangement may only be made upon the unanimous consent of the parties sharing control. Significant influence is the power of the
investing enterprise to participate in the financial and operating policy decisions of an investee, but is not control or joint control with
other parties over the establishment of those policies.
2. Determination of investment cost
(1) In case of an equity investment acquired through a business combination involving enterprises under common control, if the
acquirer pays consideration for the business combination by cash, transfer of non-cash assets, assumption of liabilities or issuance of
equity securities, the initial investment cost of the long-term equity investment is the Company’s share of the carrying 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 enterprises 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 net assets 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 entities under common control, the initial
investment cost is the fair value 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 entities under common control
that is achieved through multiple transactions by steps, the accounting treatment thereof in the separate financial statements is
different from that in the consolidated financial statements as stated below:
1) In the separate financial statements, the initial investment cost for which the Company changes to the cost method is the sum of
the carrying 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.
3. Subsequent measurement and recognition of profit or loss
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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 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. 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 services, lease or operation and management with a
useful life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very likely to flow
to the Company and its cost can be reliably measured.
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(2) Depreciation
Estimated useful life Estimated useful life
Category Method of depreciation Residual value rate
(years) (years)
Buildings Straight line method 30 4 3.2
Machines and equipment Straight line method 3-8 0-5 11.88-33.33
Transportation
Straight line method 5-8 0-5 11.88-20
equipment
Electronic equipment,
Straight line method 3-10 0-5 9.50-33.33
devices and furniture
With respect to artworks whose estimated useful life is uncertain, the Company does not assess their depreciation but performs an
impairment test on them every year.
(3) Recognition, valuation and depreciation of fixed assets leased in under finance leases
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 has 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 activity is
resumed.
(3) When the qualifying asset being acquired, constructed or produced has become ready for its intended use or sale, the
capitalization ceases.
3. Rate and amount of capitalization of borrowing costs
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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. Right of use assets
A right of use asset is the right of the Company as the lessee to use the leased asset within the lease term. The Company
recognizes the right of use asset for leases at the commencement date of the lease term. A right of use 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.
The right of use asset is initially measured at cost, which includes: 1) the initially measured amount of the lease liability; 2) the
lease payments made on or before the commencement date of the lease term less the amount related to lease incentives (if any); 3)
the initial direct costs incurred by the lessee; 4) the costs that the lessee expects to incur in order to dismantle and remove the leased
asset, restore the site where the leased asset locates, or restore the leased asset to the condition agreed upon in the lease terms.
The Company depreciates the right of use asset on a straight-line basis. If it reasonably ensures that ownership of the leased
assets will be obtained at the expiry of the lease term, the Company will depreciate the leased assets over their remaining useful lives.
If not, the Company will depreciate the leased asset over the shorter of the lease term or the remaining useful life of the leased asset.
19. Intangible assets
(1) Pricing methods, useful lives and impairment tests
The Company shall comply with the disclosure requirements for “Internet Video Business” set forth in the Guide on Self-regulatory
Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 – Disclosure of Industry Information by the Companies
Listed on the ChiNext Board.
1. Intangible assets include film 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 film 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 series copyright with the benefit period being determined to be not less than 3 years (inclusive), they
are amortized on a 5:3:2 basis (that is, 50% of the intangible asset value is amortized evenly in the first 12 months, 30% in the second
12 months and the remaining 20% is amortized on a straight-line basis during the remaining benefit period); in case of the copyrights
with the benefit period of more than 2 years (inclusive) but less than 3 years, they are amortized on a 5:5 basis (that is, 50% is
amortized in the first 12 months and the remaining 50% is amortized in a straight line during the remaining benefit period); and in
case of the copyrights with the benefit period of not more than 2 years, they are amortized on a straight-line basis during the benefit
period.
When the film 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
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the lower of the income amount and the amortized book value of intangible assets from the date on which they satisfy the recognition
criteria of revenue. If the amortized value after transfer is still greater than zero, they continue to be amortized using the original
amortization method during the remaining amortization period.
(2) Amortization of other intangible assets other than film and 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
Trademarks and domain names Trademarks and domain names
Authorized use period 10
Patent license fee 3
Game copyright Period granted by the contract
(2) Accounting policy on in-house 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.
20. Impairment of long-term assets
With respect to long-term equity investments, fixed assets, construction in progress, intangible assets with a finite useful life, right of
use assets and other long-term assets, if there’s an indication of impairment at the balance sheet date, the Company assesses their
recoverable amount. Goodwill arising from a business 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.
21. Long-term prepaid expenses
Long-term prepaid expenses are expenses that have already been incurred but should be amortized over a period of more than one
year (exclusive). Long-term prepaid expenses are stated as incurred and are amortized evenly by stages within the benefit period or
specified period. If an item of long-term prepaid expenses will not benefit the subsequent periods, the amortized value of the item
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that has not yet been amortized is wholly transferred to profit or loss for the current period.
22. Contract liabilities
The Company presents the contract assets or liabilities in the balance sheet based on the relationship between performance
obligations and customer payments. The Company lists the net contract assets and liabilities under the same contract after offset.
The Company presents its obligation to transfer goods to customers for the consideration received or receivable from customers as
the contract liabilities.
23. Employee benefits
(1) Accounting treatment of short-term employee benefits
The Company recognizes the short-term benefits actually incurred during the accounting period when the employees provide services
for the Company as liabilities, and include the same in profit or loss for the current period or as part of the cost of related assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are classified into defined contribution plans and defined benefit plans.
(1) The Company recognizes the 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 the same in profit or loss for the current
period or as part of the cost of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method, use the unbiased and consistent actuarial assumptions to estimate demographic
variables and financial variables, measure the obligation arising from the defined benefit plan and determine the period to which the
relevant obligation belongs. Meanwhile, discount the obligation arising from the defined benefit plan, in order to determine the
present value of the benefit plan obligation and the current service cost;
2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the present value of the defined benefit plan
obligation by the fair value of the assets is recognized as a net liability or asset of the defined benefit plan. If the defined benefit plan
has a surplus, the net assets of the defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset
ceiling;
3) At the end of the reporting period, the cost of employee benefits arising from the defined benefit plan is recorded as service cost,
net interest on the net liabilities or net assets of the defined benefit plan, and changes arising from re-measurement of the net
liabilities or net assets of the defined benefit plan, wherein the service cost and the net interest on the net liabilities or net assets of the
defined benefit plan are included in profit or loss for the current period or the cost of related assets, and the changes arising from
re-measurement of the net liabilities or net assets of the defined benefit plan are included in other comprehensive income, which will
not be converted back to profit or loss in subsequent periods, but those recognized as other comprehensive income may be transferred
within the scope of equity.
(3) Accounting treatment of termination benefits
The Company recognizes the employment compensation liabilities generated by termination benefits and records them into the profit
or loss for the current period at the earlier of the following dates:
(1) when the Company cannot unilaterally withdraw the termination benefits provided as a result of the labor relationship termination
plan or layoff proposal; or
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(2) when the Company recognizes the costs or expenses related to the restructuring of the termination benefits payment.
(4) Accounting treatment of other long-term employee benefits
Other long-term employee benefits are accounted for in accordance with the provisions applicable to defined contribution plans if
they are qualified as defined contribution plans, otherwise, are accounted for in accordance with the provisions applicable to defined
benefit plans. In order to simplify the accounting treatment, the total net amount of the cost of employee benefits arising from the
defined benefit plans that is recorded as service cost, net interest on the net liabilities or net assets of the defined benefit plan,
changes arising from re-measurement of the net liabilities or net assets of the defined benefit plan and other components is included
in profit or loss for the current period or the cost of related assets.
24. Lease liabilities
At the commence date of the lease term, the Company recognizes the present value of the outstanding lease payments as a lease
liability. When calculating the present value of lease payments, the interest rate in the lease is determined as the discount rate. If the
interest rate in the lease is unavailable, the Company’s incremental borrowing rate is determined as the discount rate. The difference
between the lease payments and their present value is recognized as an unrecognized financing expense, with interest expenses
recognized at the discount rate used to recognize the present value of the lease payments and charged to profit or loss for the current
period over the term of the relevant lease. The variable lease payments not measured as the lease liability are recognized in profit or
loss when they are actually incurred.
After the commencement date of the lease term, when there is a change in the substantive fixed payments, the expected amount
of payable for the guaranteed residual value, the index or rate used to determine the lease payments, or the evaluation result or actual
exercise of the purchase option, renewal option or termination option, the Company will remeasure the lease liability at the present
value of the changed lease payments and adjusts the carrying amount of the right of use asset accordingly. If the carrying amount of
the right of use asset has been reduced to nil but the lease liability still needs to be further reduced, the remaining amount will be
recognized in profit or loss for the current period.
25. Provisions
1. An obligation arising from any external guarantee, litigation, product quality warranty, onerous contract or other contingencies is
recognized as a provision if it is a present obligation assumed by the Company, and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably measured.
2. Provisions are initially measured according to the best estimates of the expenditures required to settle the related present
obligations. The carrying amount of provisions is reviewed at the balance sheet date.
26. 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
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Company has the right to collect payment for the cumulative performance that has been completed up to date throughout the term of
the contract.
For the obligation performed over time, the Company recognizes the revenue based on the performance progress over time. When the
performance progress cannot be reasonably determined, and the costs incurred are expected to be recoverable, revenue is recognized
to the extent of costs incurred until the performance progress can be reasonably determined. For the obligation performed at a point
in time, the revenue is recognized at the time point when the customer obtains the control of the related goods or services. When
judging whether the customer has obtained the control of goods, the Company considers the followings signs: (1) the Company has
the current right to receive payment for such goods, that is, the customer has the current obligation to make payment for such goods;
(2) the Company has transferred the legal ownership of such goods to the customer, that is, the customer has the legal ownership of
such goods; (3) the Company has transferred such goods to the customer physically, that is, the customer has taken possession of
such goods physically; (4) the Company has transferred major risks and rewards of such goods to the customer, that is, the customer
has obtained major risks and rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the customer
has obtained control of such goods.
2. Revenue measurement
(1) The Company measures revenue based on the transaction price allocated to each single performance obligation. The transaction
price is the amount of consideration to which the Company is entitled arising from the transfer of goods or services to the customer,
excluding the amount collected on behalf of a third party and expected to be returned to the customer.
(2) If there is variable consideration in the contract, the Company determines the best estimate of the variable consideration based on
the expected value or the most likely amount. However, variable consideration is included in the transaction price if, and to the extent
that, it is highly probable that its inclusion will not result in a significant revenue reversal of accumulatively recognized revenue in
the future when the uncertainty has been subsequently resolved.
(3) If there is a major financing component in the contract, the Company determines the transaction price based on the presumed
amount payable in cash when the customer obtains the control of goods or services. The difference between that transaction price and
the contract consideration is amortized over the period of the contract using the effective interest method. If at the inception of the
contract, the Company expects that the customer’s acquisition of control of goods or services is not more than one year from the
customer’s payment therefor, the major financing component in the contract will not be considered.
(4) If the contract has two or multiple performance obligations, the Company allocates the transaction price to each single
performance obligation in the contract by reference to relative standalone selling prices of goods promised thereby.
3. Specific methods for revenue recognition
(1) Revenue recognized at a point in time
The Company’s sales of TV shopping products, film and television series and other goods belong to the obligation performed at a
point in time. The revenue is recognized when goods made for domestic market meet the following criteria: the Company has
delivered the products to the customer pursuant to the contract and the customer has accepted such products, the payment for
products has been received or the receipt of payment has been obtained and it is probable that the associated economic benefits will
flow to the Company, the legal ownership of the products has been transferred, and the major risks and rewards of the products have
been transferred to the customer. The revenue is recognized when goods made for foreign market meet the following criteria: the
Company has declared the products pursuant to the contract and obtained the bill of lading, the payment for products has been
received or the receipt of payment has been obtained and it is probable that the associated economic benefits will flow to the
Company, the legal ownership of the products has been transferred, and the major risks and rewards of the products have been
transferred.
(2) Revenue recognized according to the progress of contract performance
The Company provides membership, artiste, operator and financial services, etc. As the customer obtains and consumes the
economic benefits generated by the Company’s performance when the Company performs the contract, the customer can control the
goods or services under construction in the process of the Company’s performance, the services or goods provided in the process of
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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 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 current liabilities.
When the credits are exchanged by the customers, the portion of 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 counter party and the license fee has been
received or the right to receive the license fee has been obtained under the relevant copyright license contract.
2) Revenue from joint copyright investment
① Investment in film and television series and other programs in which the Company does not hold copyright
Applicable business: The Company participates in the production of film and television series 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 film and television series and other programs in which the Company holds joint copyright
Applicable business: The Company participates in the production of film and television series in the capacity of a co-investor under
the relevant investment agreement which explicitly provides that the Company shall participate in the income distribution or loss
sharing of the project in the capacity of a co-investor and holds copyright therein jointly with other investors in such proportion as
agreed. Revenue from release of television series is recognized when the production of the television series has been completed, the
film and television series authority has examined the television series and issued a Television Series Release License, the copies,
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tapes and other media of the television series have been delivered to the buyers and it is probable that the economic benefits
associated therewith will flow to the Company. Revenue from release of films is recognized when the production of the films has
been completed, the film and television series authority has examined the films and issued a Film Release License, the film has been
screened in theaters and the settlement statement has been received from the relevant theater chains. Revenue from release of
programs is recognized when the production of the programs has been completed, the copies, tapes and other media of the program
have been delivered to the buyers and it is probable that the economic benefits associated therewith will flow to the Company.
Such revenue is recognized in two different ways:
If the Company is responsible for release, when the criteria for recognition of revenue is met, the Company recognizes the
distribution income as agreed as operating revenue and records the share of income payable to the production partners as deductions
from revenue. If another party is responsible for release, when the Company receives the income settlement statement as agreed, the
Company recognizes the income receivable as “operating income”.
3) Specific methods for cost recognition
If the Company is responsible for the production of and accounting for film or television series, the cost actually incurred is recorded
as “inventories - production cost”. When the production fee advanced by the investors under the contract is received, such amount is
initially recorded as “contract liabilities”, and when the production has been completed and the film or television series is ready for
release, such amount is offset against the inventory cost of film or television series. If another party is responsible for the production
of and accounting for the film or television series, the production fee paid by the Company to the production partner under the
contract is initially recorded as “prepayments”, the travel expenses incurred by the Company directly in connection with the project is
recorded as “inventories - production cost”, and when the production has been completed and the film or television series is ready for
release, such amount is transferred to inventory cost. After receiving the cost or expense settlement vouchers or statements issued by
the producer and audited or confirmed by the co-investors, the assets originally recorded are adjusted according to the actual
settlement amount, by transferring the Company’s share of the cost of the film or television series investment project from
“prepayments” to “inventories - production cost”. After obtaining copyright in the film or television series under the contract, the
actual cost of the film or television series is wholly transferred to “inventories - goods on hand”, and the revenue earned is offset
against the cost using the percentage of completion method. Under the percentage of completion method, from the date the film or
TV play is granted a release permit (i.e. the date of satisfaction of the criteria for recognition of revenue), during the period of cost
transfer, the Company uses the cost transfer rate (the proportion of total cost of the film or TV play to the total planned revenue) to
calculate and determine the cost of sales to be transferred in the current period and the inventories to be recognized at the end of the
period.
(5) Revenue from operator service
Revenue from operator service is recognized according to the relevant business settlement statements or third-party or technical
background business data provided according to the relevant cooperation agreement.
The Company recognizes the revenue according to the settlement data provided by the operator and confirmed by the Company and
the operator prior to the balance sheet date, or if the settlement data is not obtained from the operator prior to the balance sheet date,
according to the data collected by the billing platform and other data and information available to the extent that the revenue can be
measured reliably, and adjusts the same upon actual settlement.
(6) Revenue from sale of hardware
Revenue from sale of hardware is recognized on a monthly basis according to the quantity of intelligent terminal products actually
sold in the given month and their selling prices.
(7) Recognition of revenue from artiste agent service
1) Artiste performance service
The service period is relatively short. In this service, the Company mainly helps the artistes give commercial performance or concerts,
and recognizes the revenue after a contracted artiste has fulfilled his or her contractual obligations.
2) Artiste shooting service
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Shooting service includes participation by the artistes 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 artiste has fulfilled his or her
contractual obligations.
3) Artiste endorsement service
The term of an artiste’s endorsement is about 1-2 years generally. During the term of endorsement, the artiste needs to be featured in
video commercials, record theme songs, and participate in public relations and other activities. The revenue is recognized according
to the specific contract terms. If the contract provides that after the performance of the obligations by the artiste, and the service fee
already received by the Company will not be refunded except for force majeure, the service fee may be wholly recognized as revenue.
If the contract provides that, in addition to indicating the force majeure, the artiste needs to give exclusive endorsement or maintain
his or her good image, the revenue is recognized in installments during the term of endorsement.
(8) Derivative revenue from films, TV plays and programs
Derivative revenue from films, TV plays and programs is recognized after the showing thereof, at such time as provided in the
relevant contract.
(9) Revenue from games
The Company’s revenue from games mainly includes revenue from game copyright, game distribution service and self-developed
games, which are recognized as follows:
1) Revenue from game copyright includes royalty revenue and minimum guarantee revenue. The royalties received by the Company
are recorded as contract liabilities upon receipt, and included in the operating revenue for the current period using the straight line
method during the term of agreement. The minimum guarantees received are recognized as revenue when all the risks and rewards
have been transferred in accordance with the schedule of payment and division of revenues as provided in the relevant contract or
agreement.
2) Game distribution service is a mode of operation in which the Company obtains a license to operate an online game and then
enters into cooperation with Mango TV, 360 Game Center or other third-party channel platforms to jointly operate the game; the
players of the game need to be registered as users of the third-party channel, top up their accounts in the top-up system of the
third-party platform to obtain virtual cash, and use such virtual cash to purchase virtual props. In the mode of joint operation by a
third party, each third-party platform is responsible for the operation, promotion, charging service and management of billing system
of its channel, and the Company recognizes its share of revenue as the operating revenue as calculated according to the cooperation
agreement concluded with the third-party platform and confirmed by the Company and the third-party platform.
3) Self-developed games include online games and standalone games. In the mode of self-operation of an online game, the Company
distributes and operates the game through its own or third-party channels, and is solely responsible for the operation, promotion and
maintenance of the game; the players of the game are directly registered with such channels and then log in to the game, top up their
accounts to obtain virtual cash, and use such virtual cash to purchase virtual props; after the game props purchased by the players
have been used up, the Company recognizes the amount actually paid and consumed by the players as the operating revenue.
Standalone games are available for downloading by the players in the form of a mobile standalone game package. When a player
purchases props of the game, the embedded program generates a billing instruction; the telecom carrier or service provider sends a
billing code by text message, and then the carrier confirms the deduction of the relevant telephone charge to complete the process of
billing and payment. The deduction and payment of the information charge for the mobile standalone game is irrevocable. After the
deduction of such charge by the carrier, the risks and rewards are transferred to the users. The Company’s standalone games are
distributed jointly with third parties. After the users have downloaded and installed the games, the Company is not responsible for the
management of the games or otherwise restricts the use of the games by the users, that is, the Company does not have control over
such games. In such mode, the Company recognizes its share of revenue as the operating revenue as calculated according to the
cooperation agreement concluded with the relevant third-party platform and confirmed by the Company and the third-party platform.
(10) Revenue from H5 interaction
Revenue from H5 interaction mainly comes from H5 interactive advertisements placed by clients in the television programs of Hunan
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TV, and is recognized after the showing of the relevant programs on Hunan TV.
(11) Revenue from wireless value-added service
According to the wireless value-added service contract concluded by the Company and the relevant client, if the contract specifies the
total contract price, the contract price is allocated according to the schedule of payment during the term of license specified therein if
the contract price will be paid in installments, or wholly recognized as revenue after the delivery of service if the contract price will
be paid in one lump sum. If the contract does not specify the total contract price, the revenue is recognized according to the
settlement statements provided by the client.
Difference in the accounting policy for revenue recognition arising from adoption of different modes of operation for the same kind
of business
None
27. Government grants
1. Government grants are recognized if (i) 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
Government grants related to income are government grants other than those related to assets. Government grants related to both
assets and income in which it is difficult to make a distinction between the portion related to assets and the portion related to income
are wholly classified as government grants related to income. Government grants related to income as compensation for expenses or
losses to be incurred in subsequent periods are recognized as deferred income and in the period for recognizing the relevant costs,
expenses or losses, included in profit or loss for the current period or offset against the relevant costs. Government grants related to
income as compensation for expenses or losses already incurred are directly included in profit or loss for the current period or offset
against the relevant costs.
4. Government grants related to day-to-day operations of the Company are recognized in other income or offset against the relevant
costs and expenses depending on the nature of economic business. Government grants not related to day-to-day operations of the
Company are recognized in non-operating revenues or expenses.
5. Accounting treatment of policy preferential loans and interest subsidies
(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank, and then the lending bank offers a loan to the
Company at the policy-based preferential interest rate, the Company recognizes the loan amount actually received as the recorded
amount of the loan, and calculates the borrowing costs according to the loan principal and such policy-based preferential interest rate.
(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company, the Company offsets the corresponding
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interest subsidy against the related borrowing costs.
28. 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 income will be available in future periods to allow
the benefit of the deferred tax asset to be utilized. Any such reduction in amount is reversed to the extent that it becomes probable
that sufficient taxable income will be available.
4. Current and deferred tax of the Company is recognized as income or an expense and included in profit or loss for the current
period, except to the extent that the tax arises from: (1) business combination; or (2) a transaction or event which is recognized
directly in owner’s equity.
29. Lease
(1) Accounting treatment for operating lease
1. The Company as a lessee
At the commencement date of the lease term, the Company recognizes a lease with a lease term not more than 12 months that
include no purchase option as short-term lease; and a lease at lower value when the individually leased asset is brand-new as
low-value asset lease. If the Company subleases or expects to sublease the leased assets, the original lease is not recognized as a
low-value asset lease.
For all short-term lease and low-value asset lease, the Company recognizes the lease payments in the cost of relevant assets or
profit or loss for the current period on a straight-line basis over the term of the relevant lease.
2. The Company as a lessor
At the commencement date of the lease term, the Company classifies a lease as finance lease whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee, and all other leases as operating leases.
The Company recognizes lease receipts as rental income on a straight-line basis over the term of the relevant lease, with initial
direct costs incurred capitalized and apportioned on the same basis of recognizing rental income to include in profit or loss for the
current period separately. Variable lease payments obtained by the Company relevant to operating leases that are not included in the
lease receipts are recognized in profit or loss when they are actually incurred.
(2) Accounting treatment for finance lease
1. The Company as a lessee
At the commencement date of the lease term, the Company recognizes right of use asset and lease liability for a lease, with
details referring to Right of use assets and Lease liabilities described above.
2. The Company as a lessor
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At the commencement date of the lease term, the Company recognizes the finance lease receivable at the net value of lease
investment (the sum of the unguaranteed residual value and the present value of the lease receipts not yet received at the
commencement date of the lease term that are discounted at the interest rate in the lease) and derecognizes the finance lease asset.
Over the term of the relevant lease, the Company calculates and recognizes interest income based on the interest rate in the lease.
Variable lease payments obtained by the Company that are not included in the net value of lease investment are recognized in
profit or loss when they are actually incurred.
30. 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 contract liabilities for the period in which the estimation is changed.
31. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√ Applicable □ N/A
Changes in accounting policies and associated
Approval procedure Remark
reasons
Changes in accounting policies caused by changes Approved by the Company at the 36th meeting of the
New Lease Standard
in Accounting Standards for Business Enterprises 3rd board of directors held on April 22, 2021.
1.The Company implemented the revised Accounting Standards for Business Enterprises No. 21—Lease (the “New Lease
Standard”) from January 1, 2021(the “First Implementation Date”).
(1) For contracts existing before the First Implementation Date, the Company chooses not to reassess whether they are leases or
include leases.
(2) For lease contracts in which the Company is a lessee, the Company retrospectively adjusts the amount of retained earnings
and other related items in the financial statements at the beginning of the reporting period in accordance with the cumulative effects
arising from the implementation of the New Lease Standard comparing with the previous standard on the First Implementation Date,
with the information for the comparable period not adjusted. The details are shown as follows:
For operating leases prior to the First Implementation Date, the Company, on the First Implementation Date, measures the lease
liability based on the present value of the remaining lease payments discounted at the Company’s incremental borrowing rate on the
First Implementation Date, and the right of use asset at an amount equal to the lease liability with necessary adjustments for prepaid
rentals.
On the First Implementation Date, the Company makes impairment tests and relevant accounting treatments for right of use
assets in accordance with Note V (20) to the Financial Statements.
1) The main impacts of the New Lease Standard on the Company’s financial statements on January 1, 2021 are presented as
follows:
Item Balance Sheet
December 31, 2020 Adjustment impacts of January 1, 2021
New Lease Standard
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Prepayment 1,398,350,153.72 -409,160.33 1,397,940,993.39
Right of use assets 217,783,996.12 217,783,996.12
Non-current liabilities due within one 48,596,782.45 48,596,782.45
year
Lease liabilities 168,778,053.34 168,778,053.34
2) The lease liabilities included in the balance sheet on the First Implementation Date adopts 3.85% as the weighted average of
the Company’s incremental borrowing rate.
3) Simplified treatment applied to operating leases prior to the First Implementation Date
A. For lease contracts completed within 12 months after the First Implementation Date, the Company applies simplified
method and does not recognize right of use assets and lease liabilities.
B. The Company adopts the same discount rate for lease contracts with similar characteristics like similar lease terms in
measuring lease liabilities.
C. The measurement of right of use assets does not involve initial direct costs.
D. The Company determines the lease term based on the actual exercise of the option to renew or to terminate the lease and
other latest information prior to the First Implementation Date.
E. As an alternative of the impairment test for right of use asset, the Company assesses whether the contract including a lease is
an onerous contract prior to the First Implementation Date in accordance with the Accounting Standards for Business Enterprises No.
13 - Contingencies and adjusts the right of use asset by the amount of loss provision recorded at the balance sheet date prior to the
First Implementation Date.
F. If a lease changes prior to the First Implementation Date, the Company will make accounting treatment in accordance with
the final arrangement of the lease change.
The above simplified treatment has brought no significant impact on the Company’s financial statements.
(3) For operating lease contracts related to low-value assets that have existed before the First Implementation Date, the
Company adopts simplified treatments of not recognizing right of use assets and lease liabilities, and accounting for them in
accordance with the New Lease Standard from the First Implementation Date.
(4) For lease contracts in which the Company is a lessor, the Company will account for the lease contracts in accordance with
the New Lease Standard from the First Implementation Date.
2. The Company implements the Interpretation No. 14 of the Accounting Standards for Business Enterprises issued by the
Ministry of Finance in 2021 from January 26, 2021, and changes in the accounting policy bring no impact on the Company’s
financial statements.
3. The Company implements the “Presentation of Centralized Management of Funds” in Interpretation No. 15 of the
Accounting Standards for Business Enterprises issued by the Ministry of Finance from December 31, 2021, and changes in the
accounting policy bring no impact on the Company’s financial statements.
(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 Lease Standard since 2021
√ Applicable □ N/A
Did the opening balances of line items in the balance sheet require adjustment?
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√ Yes □ No
Consolidated balance sheet
In RMB
Item December 31, 2020 January 1, 2021 Adjusted amount
Current Assets:
Cash and bank balances 5,336,319,786.70 5,336,319,786.70
Balances with clearing
agencies
Placements with banks and
other financial institutions
Held-for-trading financial
assets
Derivative financial assets
Notes receivable
Accounts receivable 2,976,696,672.95 2,976,696,672.95
Receivable financing 164,410,000.00 164,410,000.00
Prepayments 1,398,350,153.72 1,397,940,993.39 -409,160.33
Premium receivable
Amounts receivable under
reinsurance contracts
Reinsurer’s share of
insurance contract reserves
Other receivables 51,168,090.47 51,168,090.47
Including: dividends
receivable
Dividends receivable
Financial assets purchased
under resale agreements
Inventories 1,660,324,608.09 1,660,324,608.09
Contract assets 817,451,396.56 817,451,396.56
Held-for-sale assets
Non-current assets due
within one year
Other current assets 520,087,664.20 520,087,664.20
Total current assets 12,924,808,372.69 12,924,399,212.36 -409,160.33
Non-current assets:
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Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity
22,882,969.51 22,882,969.51
investments
Other investments in equity
instruments
Other non-current financial
assets
Investment properties
Fixed assets 186,924,296.25 186,924,296.25
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets 217,783,996.12 217,783,996.12
Intangible assets 5,894,454,399.68 5,894,454,399.68
Development expenditure 157,264,231.85 157,264,231.85
Goodwill
Long-term prepaid expenses 77,342,051.99 77,342,051.99
Deferred income tax assets
Other non-current assets 2,023,481.01 2,023,481.01
Total non-current assets 6,340,891,430.29 6,558,675,426.41 217,783,996.12
Total assets 19,265,699,802.98 19,483,074,638.77 217,374,835.79
Current liabilities:
Short term borrowings 39,789,110.68 39,789,110.68
Loans from the central bank
Taking from banks and other
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 712,292,035.75 712,292,035.75
Accounts payable 5,217,087,330.62 5,217,087,330.62
Receipts in advance
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Contract liabilities 1,330,475,023.10 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 856,712,827.84 856,712,827.84
Taxes payable 131,527,885.95 131,527,885.95
Other payables 160,651,194.91 160,651,194.91
Including: interest payable
Dividends payable
Fees and commissions
payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due
48,596,782.45 48,596,782.45
within one year
Other current liabilities 138,698,825.59 138,698,825.59
Total current liabilities 8,587,234,234.44 8,635,831,016.89 48,596,782.45
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 168,778,053.34 168,778,053.34
Long-term payables
Long-term employee benefits
payable
Provisions 8,305,486.15 8,305,486.15
Deferred income 48,938,835.69 48,938,835.69
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Deferred income tax
liabilities
Other non-current liabilities
Total non-current liabilities 57,244,321.84 226,022,375.18 168,778,053.34
Total liabilities 8,644,478,556.28 8,861,853,392.07 217,374,835.79
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 -2,759.37
Special reserve
Surplus reserve 87,139,560.14 87,139,560.14
General risk reserve
Undistributed profit 3,881,526,167.30 3,881,526,167.30
Total owners’ equity
attributable to equity holders 10,587,978,185.42 10,587,978,185.42
of the parent company
Minority interests 33,243,061.28 33,243,061.28
Total owners’ equity 10,621,221,246.70 10,621,221,246.70
Total liabilities and owners’
19,265,699,802.98 19,483,074,638.77 217,374,835.79
equity
Descriptions of adjustments
On January 1, 2021, the Company began to implement the Notice on Revision and Issuance of the Accounting Standards for Business
Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35) (the “New Lease Standard”), according to which the prepaid rent recognized in
prepayments was transferred to right of use assets, and leases other than short-term and low-value leases were recognized as right of
use assets and lease liabilities.
Balance sheet of the parent company
In RMB
Item December 31, 2020 January 1, 2021 Adjusted amount
Current Assets:
Cash and bank balances 405,729,095.82 405,729,095.82
Held-for-trading financial
assets
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Derivative financial assets
Notes receivable
Accounts receivable
Receivable financing
Prepayments 270,000.00 270,000.00
Other receivables 260,068,347.20 260,068,347.20
Including: dividends
receivable
Dividends receivable
Inventories
Contract assets
Held-for-sale assets
Non-current assets due
within one year
Other current assets 3,194,254.68 3,194,254.68
Total current assets 669,261,697.70 669,261,697.70
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity
7,780,583,738.35 7,780,583,738.35
investments
Other investments in equity
instruments
Other non-current financial
assets
Investment properties
Fixed assets 1,305,884.91 1,305,884.91
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets 10,702,835.07 10,702,835.07
Intangible assets 803,907.00 803,907.00
Development expenditure
Goodwill
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Long-term prepaid expenses 5,579,058.77 5,579,058.77
Deferred income tax assets
Other non-current assets
Total non-current assets 7,788,272,589.03 7,798,975,424.10
Total assets 8,457,534,286.73 8,468,237,121.80 10,702,835.07
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 31,708,478.30
Taxes payable 545,679.40 545,679.40
Other payables 7,672,949.27 7,672,949.27
Including: interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due
1,699,498.72 1,699,498.72
within one year
Other current liabilities
Total current liabilities 39,927,106.97 41,626,605.69 1,699,498.72
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 9,003,336.35 9,003,336.35
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
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Deferred income tax
liabilities
Other non-current liabilities
Total non-current liabilities 9,003,336.35 9,003,336.35
Total liabilities 39,927,106.97 50,629,942.04 10,702,835.07
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 87,139,560.14
Undistributed profit 370,756,098.26 370,756,098.26
Total owners’ equity 8,417,607,179.76 8,417,607,179.76
Total liabilities and owners’
8,457,534,286.73 8,468,237,121.80 10,702,835.07
equity
Descriptions of adjustments
On January 1, 2021, the Company began to implement the Notice on Revision and Issuance of the Accounting Standards for Business
Enterprises No. 21 - Leases (Cai Kuai [2018] No. 35) (the “New Lease Standard”), according to which the prepaid rent recognized in
prepayments was transferred to right of use assets, and leases other than short-term and low-value leases were recognized as right of
use assets and lease liabilities.
(4) Description of retrospective adjustments in comparative data in prior periods due to the first
implementation of New Lease Standard from 2021
□ Applicable √ N/A
32. Others
VI. Taxes
1. Major categories of taxes and tax rates
Tax type Taxation basis Tax rate
VAT payable is the output tax based on the
VAT 13%, 9%, 5%, 6%, 3%
sales of goods and taxable labor income
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calculated pursuant to the tax law, net of
the input tax that is allowed to be deducted
in the current period.
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
Happigo Co., Ltd. Tax exemption
Happy Sunshine Tax exemption
Horgos Happy Sunshine Media Co., Ltd. Tax exemption
Mango Studios Co., Ltd. Tax exemption
Mango Entertainment Co., Ltd. Tax exemption
Hunan Happy Mango Fun Technology Co., Ltd. Tax exemption
Hunan E.E. Media Film and Television Production Co. Ltd. Tax exemption
Mango Fun Technology 12.5%
Hainan E.E. Media Co., Ltd. 15%
Happy Sunshine Xingmang Interactive Entertainment Media Co.,
15%
Ltd.
Dameiren Global Trading Co., Limited 8.25%, 16.5%
Happy Sunshine (Hong Kong) Media Company Limited 8.25%, 16.5%
Other taxpayers excluding above ones 25%
2. Tax incentives
1. Happy Sunshine, Happigo Co., Ltd., Mango Studios, Mango Entertainment, Hunan Happy Mango Fun Technology Co., Ltd.,
and Hunan E.E. Media Film and Television Production Co. Ltd. are enterprises transformed from cultural public institutions with
for-profit operations approved by the Ministry of Finance and the State Administration of Taxation. In accordance with the Notice of
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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 Administration of Taxation, and
the Publicity Department of the CPC Central Committee (Cai Shui (2019) No. 16) in February 2019, cultural enterprises transformed
are qualified to be exempt from enterprise income tax within five years from January 1, 2019. This period is the third year of
exempting from enterprise income tax.
2. 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.
This period is the fourth year of exempting from enterprise income tax.
3. Mango Fun 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. 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), Mango Fun’s tax incentive period should commence from 2017, the first year of earning profits, which means Mango
Fun can be exempted from enterprise income tax from the first year to the second year, and is eligible for a halved tax rate (i.e. 25%)
from the third year to the fifth year until the tax incentive period expires. This period is the third year of being eligible for a halved
tax rate.
4. Happy Sunshine Xingmang Interactive Entertainment Media Co., Ltd., Hainan E.E. Media Co., Ltd. is qualified as an
encouraged enterprise registered and substantially operating in Hainan Free Trade Port in accordance with the Notice of Income Tax
Incentive Policies for Enterprises in Hainan Free Trade Port (Cai Shui [2020] No. 31) by the Ministry of Finance and the State
Taxation Administration, thus its enterprise income tax is levied at a reduced rate of 15%.
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 under a reduction rate 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. In accordance with the Announcement of the Ministry of Finance and
the State Administration of Taxation on Continuing the Implementation of Certain Tax Preferential Policies Responding to the
COVID-19 Outbreak (Announce No. 21 issued by the Ministry of Finance and the State Administration of Taxation in 2021), the
Company is exempted from cultural undertaking construction fees until December 31, 2021.
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3. Others
VII. Notes to Items in the Consolidated Financial Statements
1. Cash and bank balances
In RMB
Item Closing balance Opening balance
Cash on hand 42,803.61 86,976.40
Bank deposits 6,952,751,972.39 5,317,984,735.78
Other monetary funds 21,670,375.81 18,248,074.52
Total 6,974,465,151.81 5,336,319,786.70
Total amount of funds restricted in
use due to mortgage, pledge or freezing, 63,087,237.63 21,856,302.69
etc.
Other descriptions
In the closing balance of bank balances, the amount of RMB5,000.00 using as POS deposits and the amount of
RMB61,862,026.15 frozen due to litigation are restricted to use.
In the closing balance of other monetary funds, the amount of RMB1,220,211.48 using as third-party deposits are restricted to
use.
2. Held-for-trading financial assets
In RMB
Item Closing balance Opening balance
Financial assets measured at fair value with any changes
3,410,000,000.00
accrued to the current profits and losses
Including:
Bank finance 3,410,000,000.00
Including:
Total 3,410,000,000.00
Other descriptions:
3. Notes receivable
(1) Presentation of notes receivable by category
In RMB
Item Closing balance Opening balance
Bank acceptances 673,742,339.23
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Total 673,742,339.23
In RMB
Closing balance Opening balance
Category Book balance Bad debt provision Book balance Bad debt provision Carrying
Carrying amount
Amount Proportion Amount Proportion Amount Proportion Amount Proportion amount
Including:
Notes receivable for
which the provision
673,742,339.23 100.00% 673,742,339.23
for bad debts are
made by group
Including:
Group of bank
673,742,339.23 100.00% 673,742,339.23
acceptances
Total 673,742,339.23 100.00% 673,742,339.23
Provisions for bad debts made individually:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason for provisions
Provisions for bad debts made by group:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Description 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) 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
Significant recovery or reversal of bad debt provision for the current period:
□ Applicable √ N/A
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2021 Annual Report of Mango Excellent Media Co., Ltd.
(3) Notes receivable of the Company pledged at the end of the Reporting Period
In RMB
Item Pledged amount at the end of the period
(4) 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 Reporting Period
In RMB
Item Balance derecognized at the end of the period Balance not derecognized at the end of the period
Bank acceptances 210,748,000.00
Total 210,748,000.00
(5) Notes receivable of the Company that have been transferred to accounts receivable due to the drawers'
failure of performance at the end of the Reporting Period
In RMB
Amount transferred to accounts receivable at the end of the
Item
Reporting Period
Other descriptions
As it is unlikely for large state-owned commercial banks and listed joint-stock commercial banks to be unable to pay the
matured acceptance bills, the Company derecognizes the above bank acceptances that have been endorsed or discounted. However, if
these bank acceptances are not paid on maturity, the Company will still be jointly and severally liable to the holder in accordance
with the provisions of the Law on Negotiable Instruments. Except those accepted by large state-owned commercial banks and listed
joint-stock commercial banks, the Company derecognizes no other bank acceptances that have been endorsed or discounted.
(6) Notes receivable actually written off for the current period
In RMB
Item Write-off amount
Information of significant notes receivable that are written off:
In RMB
Whether the amount
Nature of notes Write-off procedures arises from
Entity Write-off amount Reason for write-off
receivable performed related-party
transactions
Description of write-off of notes receivable:
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4. Accounts receivable
(1) Disclosure of accounts receivable by category
In RMB
Closing balance Opening balance
Category Book balance Bad debt provision Carrying Book balance Bad debt provision Carrying
Amount Proportion Amount Proportion amount Amount Proportion Amount Proportion amount
Accounts receivable for
which the provision for 57,616,8 38,634,67
96,251,520.25 2.92% 59.86% 70,540,338.97 2.26% 49,824,633.16 70.63% 20,715,705.81
bad debts are made 47.28 2.97
individually
Including:
Accounts receivable for
which the provision for 123,522, 3,075,108 3,053,563,568. 2,955,980,967
3,198,630,401.64 97.08% 3.86% 97.74% 97,582,601.83 3.20%
bad debts are made by 159.73 ,241.91 97 .14
group
Including:
181,139, 3,113,742 3,124,103,907. 147,407,234.9 2,976,696,672
Total 3,294,881,921.89 100.00% 5.50% 100.00% 4.72%
007.01 ,914.88 94 9 .95
Provisions for bad debts made individually:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason for provisions
Likely to be
The first 43,718,371.28 16,777,045.63 38.38%
non-recoverable
Likely to be
The second 13,605,050.00 4,081,515.00 30.00%
non-recoverable
Expected to be
The third 10,786,000.00 10,786,000.00 100.00%
non-recoverable
Expected to be
The fourth 9,701,037.77 9,701,037.77 100.00%
non-recoverable
Expected to be
The fifth 5,832,200.00 5,832,200.00 100.00%
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
The eighth 2,185,000.00 2,185,000.00 100.00% Expected to be
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non-recoverable
Expected to be
Others 3,543,210.10 3,543,210.10 100.00%
non-recoverable
Total 96,251,520.25 57,616,847.28 -- --
Provisions for bad debts made individually:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason for provisions
Provisions for bad debts made by group:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Aging group 1,769,746,844.21 123,522,159.73 6.98%
Group of receivables from
related parties controlled by the 1,428,883,557.43
same actual controller
Total 3,198,630,401.64 123,522,159.73 --
Description of basis for determining the group:
Provisions for bad debts made by group: aging group
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 1,230,532,020.41 53,572,481.28 4.35%
1-2 years 239,014,294.97 17,516,681.30 7.33%
2-3 years 266,864,072.98 39,026,384.35 14.62%
3-4 years 28,617,506.47 9,143,715.00 31.95%
4-5 years 1,494,849.98 1,038,798.40 69.49%
Over 5 years 3,224,099.40 3,224,099.40 100.00%
Total 1,769,746,844.21 123,522,159.73 --
Description of basis for determining the group:
Provisions for bad debts made by group:
In RMB
Closing balance
Name
Book balance Bad debt provision 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
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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 Book balance
Within 1 year (including) 2,610,801,538.75
1-2 years 353,131,856.11
2-3 years 272,414,533.08
Over 3 years 58,533,993.95
3-4 years 42,224,609.67
4-5 years 2,251,453.78
Over 5 years 14,057,930.50
Total 3,294,881,921.89
(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
Provisions for
bad debts made 49,824,633.16 19,780,592.81 4,843,660.00 7,108,378.68 -36,340.01 57,616,847.28
individually:
Provisions for
bad debts made 97,582,601.83 25,970,093.72 -30,535.82 123,522,159.73
by group:
Total 147,407,234.99 45,750,686.53 4,843,660.00 7,108,378.68 -66,875.83 181,139,007.01
Significant recovery or reversal of bad debt provision for the current period:
In RMB
Entity Amount of recovery or reversal Method of recovery
(3) Accounts receivable actually written off for the current period
In RMB
Item Write-off amount
Accounts receivable 7,108,378.68
Information of significant accounts receivable that are written off:
159
2021 Annual Report of Mango Excellent Media Co., Ltd.
In RMB
Whether the amount
Nature of accounts Write-off procedures arises from
Entity Write-off amount Reason for write-off
receivable performed related-party
transactions
Description of write-off of accounts receivable:
(4) Top five closing balances of accounts receivable categorized by debtor
In RMB
Closing balance of accounts Proportion of total closing Closing balance of provisions for
Entity
receivable balance of accounts receivable bad debts
The first 1,039,093,242.60 31.54%
The second 345,350,543.25 10.48%
The third 229,332,314.07 6.96% 11,444,236.34
The fourth 80,962,500.00 2.46% 8,096,250.00
The fifth 64,132,446.09 1.95% 3,330,298.62
Total 1,758,871,046.01 53.39%
(5) Accounts receivable derecognized due to transfer of financial assets
(6) Amount of assets and liabilities arising from transfer of accounts receivable under continuing
involvement
Other descriptions:
5. Receivable financing
In RMB
Item Closing balance Opening balance
Bank acceptances 137,800,000.00 164,410,000.00
Total 137,800,000.00 164,410,000.00
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, bank acceptances of the Company that have been endorsed or discounted but not yet due as of the balance
sheet date amount to RMB161,846,150.00.
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2021 Annual Report of Mango Excellent Media Co., Ltd.
6. Prepayments
(1) Presentation of prepayments by aging
In RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 1,420,518,067.67 77.44% 1,056,202,175.77 75.55%
1-2 years 174,255,538.14 9.50% 141,828,262.96 10.15%
2-3 years 103,322,639.16 5.63% 95,580,817.91 6.84%
Over 3 years 136,253,768.23 7.43% 104,329,736.75 7.46%
Total 1,834,350,013.20 -- 1,397,940,993.39 --
Reasons for overdue settlement of prepayments with significant amounts and aged more than 1 year:
Entity Closing balance Reasons for unsettlement
The first 226,428,301.80 Prepayments for copyrights, pending
broadcasting
The second 57,816,250.00 Undelivered goods
The third 49,999,516.00 Undelivered goods
The fourth 45,283,019.04 Prepayments for copyrights, pending
broadcasting
The fifth 42,915,750.00 Undelivered goods
The sixth 31,733,651.04 Prepayments for copyrights, pending
broadcasting
Sub-total 454,176,487.88
(2) Top five closing balances of prepayments categorized by receivers
Entity Book balance Proportion to total prepayments (%)
The first 226,428,301.80 11.53
The second 142,614,624.00 7.27
The third 90,085,653.58 4.59
The fourth 83,767,619.64 4.27
The fifth 71,094,383.44 3.62
Sub-total 613,990,582.46 31.28
Other descriptions: refer to Note VII (31) of this Financial Statement for the difference between beginning number and ending
number of previous year (December 31, 2020).
7. Other receivables
In RMB
161
2021 Annual Report of Mango Excellent Media Co., Ltd.
Item Closing balance Opening balance
Other receivables 40,568,403.37 51,168,090.47
Total 40,568,403.37 51,168,090.47
(1) Interest receivable
1) Category of interest receivable
In RMB
Item Closing balance Opening balance
2)Significant overdue interest
In RMB
If impaired and the
Borrower Closing balance Overdue period Reason for overdue
judgement basis
Other descriptions:
3) Provisions for bad debts
□ Applicable √ N/A
(2) Dividends receivable
1) Category of dividends receivable
In RMB
Item (or investee) Closing balance Opening balance
2) Significant dividends receivable aging over one year
In RMB
If impaired and the
Item (or investee) Closing balance Aging Reason for no recovery
judgement basis
3) Provisions for bad debts
□ Applicable √ N/A
Other descriptions:
162
2021 Annual Report of Mango Excellent Media Co., Ltd.
(3) Other receivables
1) Category of other receivables by nature
In RMB
Book balance at the beginning of the
Nature of receivables Book balance at the end of the period
period
Security deposit 20,865,460.51 17,122,521.77
Amount due to or from related parties 6,905,347.81 3,928,869.69
Suspense payments receivable 4,517,799.42 3,787,622.67
Petty cash 6,334,132.71 8,384,709.56
Receivables and payables 7,369,135.72 22,452,844.09
Total 45,991,876.17 55,676,567.78
2) Provisions for bad debts
In RMB
Stage I Stage II Stage III
Bad debt provision Future 12-month Lifetime ECL (without Lifetime ECL (with credit Total
ECL credit impairment) impairment)
Balance as at January 1,
831,767.93 146,161.29 3,530,548.09 4,508,477.31
2021
Balance as at January 1,
—— —— —— ——
2020 transferred to
-- Stage II -36,005.87 36,005.87
-- Stage III -68,767.63 68,767.63
Current provision -226,560.61 -23,389.33 1,240,066.71 990,116.77
Current write-off 58,099.48 58,099.48
Other change -17,021.80 -17,021.80
Balance as at December
552,179.65 90,010.20 4,781,282.95 5,423,472.80
31, 2021
Changes in book balance whose loss allowance changed significantly in the current period
□ Applicable √ N/A
Disclosure by aging
In RMB
Aging Book balance
Within 1 year (including) 22,643,068.31
1-2 years 10,623,515.77
163
2021 Annual Report of Mango Excellent Media Co., Ltd.
2-3 years 4,424,096.03
Over 3 years 8,301,196.06
3-4 years 1,711,684.08
4-5 years 322,093.82
Over 5 years 6,267,418.16
Total 45,991,876.17
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
Provisions for bad
debts made 1,761,342.83 106,200.00 -6,812.94 1,860,729.89
individually:
Provisions for bad
debts made by 2,747,134.48 1,228,298.72 344,381.95 58,099.48 -10,208.86 3,562,742.91
group:
Total 4,508,477.31 1,334,498.72 344,381.95 58,099.48 -17,021.80 5,423,472.80
Significant recovery or reversal of provisions for bad debts for the current period:
In RMB
Entity Amount of reversal or recovery Method of recovery
4) Other receivables actually written off for the current period
In RMB
Item Write-off amount
Other receivables 58,099.48
Information of significant other receivables that are written off:
In RMB
Whether the amount
Nature of other Write-off procedures arises from
Entity Write-off amount Reason for write-off
receivables performed related-party
transactions
Description of the write-off of other receivables
164
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5) Top five closing balances of other receivables categorized by debtor
In RMB
Proportion of total Closing balance of
Nature of other
Entity Closing balance Aging closing balance of provisions for bad
receivables
other receivables debts
Amount due to or
The first 2,629,764.69 Over 5 years 5.72% 2,629,764.69
from related parties
The second Security deposit 2,000,000.00 2-3 years 4.35%
The third Security deposit 1,763,441.30 Within 1 year 3.83%
Within 1 year, 1-2
The fourth Security deposit 1,412,441.00 years, 2-3 years, and 3.07%
more than 5 years
The fifth Security deposit 1,114,955.04 1-2 years 2.42%
Total -- 8,920,602.03 -- 19.39% 2,629,764.69
6) Other receivables relevant to government grants
In RMB
Estimated date and
Name of government Aging by the end of the
Entity Closing balance amount to be received
grants Reporting Period
and relevant basis
7) Other receivable derecognized due to transfer of financial assets
8) Amount of assets and liabilities arising from transfer of other receivables under continuing involvement
Other descriptions:
8. 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
Item
Book balance decline in value Carrying amount Book balance decline in value Carrying amount
of inventories or of inventories or
165
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for impairment of for impairment of
contract contract
performance performance
costs costs
Raw materials 153,715,792.31 153,715,792.31 110,321,511.87 110,321,511.87
Work in process 739,561,476.10 7,075,138.47 732,486,337.63 1,048,703,826.21 76,390,171.65 972,313,654.56
Goods on hand 911,365,394.93 128,552,836.04 782,812,558.89 571,736,351.42 754,367.83 570,981,983.59
Turnover
756,248.01 756,248.01 796,365.36 796,365.36
materials
Goods upon
19,775,763.95 19,775,763.95 5,911,092.71 5,911,092.71
delivery
Total 1,825,174,675.30 135,627,974.51 1,689,546,700.79 1,737,469,147.57 77,144,539.48 1,660,324,608.09
(2) Provision for decline in value of inventories and for impairment of contract performance costs
In RMB
Increase in the current period Decrease in the current period
Item Opening balance Reversal or Closing balance
Provision Others Others
write-off
Work in process 76,390,171.65 3,394,528.30 72,709,561.48 7,075,138.47
Goods on hand 754,367.83 128,668,778.66 870,310.45 128,552,836.04
Total 77,144,539.48 132,063,306.96 73,579,871.93 135,627,974.51
As to the Company’s products directly used for sale, the net realizable value was recognized by: the estimated selling price of
the inventory minus the estimated selling expenses and relevant taxes. External sales have been realized with respect to the current
write-off of provision for decline in value of inventories.
The Company’s provision for decline in value of work-in-progress was reversed mainly because the Herstory, a television
series that was released from broadcasting limitation and played in Mango TV on January 1, 2022, eliminating the factors affecting
original provision for decline in value.
(3) Description of the closing balance of inventories containing the capitalized borrowing costs
(4) Description of the current amortization amount of contract performance costs
9. Contract assets
In RMB
Closing balance Opening balance
Item provision for Carrying provision for
Book balance Book balance Carrying amount
impairment amount impairment
Operator business 954,735,808.95 51,682,065.34 903,053,743.61 860,346,222.69 42,894,826.13 817,451,396.56
166
2021 Annual Report of Mango Excellent Media Co., Ltd.
Total 954,735,808.95 51,682,065.34 903,053,743.61 860,346,222.69 42,894,826.13 817,451,396.56
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
Write-off/elimination for
Item Provision Reversal Reason
the period
Operator business 8,787,239.21 Made by group
Total 8,787,239.21 --
Other descriptions:
10. Other current assets
In RMB
Item Closing balance Opening balance
Prepayments for internet access
8,462,851.39 19,816,194.13
cooperation
Input VAT to be deducted 101,052,683.66 87,304,605.69
Prepaid taxes and levies 6,281,520.53 2,425,615.08
Issued loans-credit loans [note] 6,034,159.32
Issued loans-mortgage loans [note] 399,965,532.81
Others 7,742,163.67 4,541,557.17
Total 123,539,219.25 520,087,664.20
Other descriptions:
[Note] The decrease for the current period is caused by disposal of a subsidiary, Hunan Happy Money Microfinance Co., Ltd.
11. Long-term equity investments
In RMB
Increase or decrease for the period Closing
Opening Closing
balance of
balance Investment Adjustment Other Declared Provisions balance
Investee Additional Decreased provision for
(carrying profit or in other equity cash for Others (carrying
investment investment diminution in
amount) loss under comprehensi changes dividends impairment amount)
value
167
2021 Annual Report of Mango Excellent Media Co., Ltd.
equity ve income or profits
method
I. Joint ventures
II. Associates
Shanghai
Mamma Mia
Interactive
22,882,969.51 999,547.86 23,882,517.37
Entertainment
Technology
Co., Ltd.
Sub-total 22,882,969.51 999,547.86 23,882,517.37
Total 22,882,969.51 999,547.86 23,882,517.37
Other descriptions
12. Investment properties
(1) Investment properties measured at cost
□ Applicable √ N/A
(2) Investment properties measured at fair value
□ Applicable √ N/A
(3) Investment properties for which the title certificates are not completed
In RMB
Item Carrying amount Reason for incompletion of title certificate
Other descriptions
13. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 184,450,336.98 186,924,296.25
Total 184,450,336.98 186,924,296.25
(1) Fixed assets
In RMB
Item Buildings Machines and Electronic Transportation Others Total
168
2021 Annual Report of Mango Excellent Media Co., Ltd.
equipment equipment, equipment
devices and
furniture
I. Original carrying
amount:
1. Opening balance 58,268,091.66 289,379,293.11 263,862,259.85 18,342,633.35 11,000,000.00 640,852,277.97
2. Increase in the
6,851,007.50 35,209,853.33 405,462.57 42,466,323.40
current period
(1) Purchase 6,851,007.50 35,209,853.33 405,462.57 42,466,323.40
(2) Transfer from
construction in progress
(3) Increase due to
business combination
3. Decrease in the
1,373,509.42 10,011,461.70 3,082,900.85 14,467,871.97
current period
(1) Disposal or
1,373,509.42 8,749,621.58 3,082,900.85 13,206,031.85
retirement
Disposal of subsidiaries 1,261,840.12 1,261,840.12
4. Closing balance 58,268,091.66 294,856,791.19 289,060,651.48 15,665,195.07 11,000,000.00 668,850,729.40
II. Accumulated
depreciation
1. Opening balance 10,689,869.24 241,076,753.84 189,960,862.55 11,802,395.27 453,529,880.90
2. Increase in the
1,908,705.36 14,611,705.27 25,376,899.51 1,325,798.19 43,223,108.33
current period
(1) Provision 1,908,705.36 14,611,705.27 25,376,899.51 1,325,798.19 43,223,108.33
3. Decrease in the
1,306,619.60 8,618,955.67 2,822,136.03 12,747,711.30
current period
(1) Disposal or
1,306,619.60 8,215,966.70 2,822,136.03 12,344,722.33
retirement
Disposal of subsidiaries 402,988.97 402,988.97
4. Closing balance 12,598,574.60 254,381,839.51 206,718,806.39 10,306,057.43 484,005,277.93
III. Provision for
impairment
1. Opening balance 391,088.27 7,012.55 398,100.82
2. Increase in the
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2021 Annual Report of Mango Excellent Media Co., Ltd.
current period
(1) Provision
3. Decrease in the
2,986.33 2,986.33
current period
(1) Disposal or
2,986.33 2,986.33
retirement
4. Closing balance 391,088.27 4,026.22 395,114.49
VI. Book value
1. Closing balance 45,669,517.06 40,083,863.41 82,337,818.87 5,359,137.64 11,000,000.00 184,450,336.98
2. Opening balance 47,578,222.42 47,911,451.00 73,894,384.75 6,540,238.08 11,000,000.00 186,924,296.25
(2) Fixed assets temporarily idle
In RMB
Accumulated Provision for
Item Cost Carrying amount Remark
depreciation impairment
(3) Fixed assets leased out under operating lease
In RMB
Item Closing balance
Buildings 23,382,792.73
Machines and equipment 10,447,576.02
Transportation equipment 239,667.44
Sub-total 34,070,036.19
(4) Fixed assets for which the title certificates are not completed
In RMB
Item Carrying amount Reason for incompletion of title certificate
Other descriptions
(5) Disposal of fixed assets
In RMB
Item Closing balance Opening balance
Other descriptions
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2021 Annual Report of Mango Excellent Media Co., Ltd.
14. Right of use assets
In RMB
Item Buildings Total
I. Original carrying amount:
1. Opening balance 217,783,996.12 217,783,996.12
2. Increase in the current period 46,617,118.66 46,617,118.66
1) Lease in 46,617,118.66 46,617,118.66
3. Decrease in the current period 2,318,188.53 2,318,188.53
2,318,188.53 2,318,188.53
4. Closing balance 262,082,926.25 262,082,926.25
II. Accumulated depreciation
1. Opening balance
2. Increase in the current period 52,187,591.16 52,187,591.16
(1) Provision 52,187,591.16 52,187,591.16
3. Decrease in the current period 409,160.33 409,160.33
(1) Disposal 409,160.33 409,160.33
4. Closing balance 51,778,430.83 51,778,430.83
III. Provision for impairment
1. Opening balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
4. Closing balance
VI. Book value
1. Closing balance 210,304,495.42 210,304,495.42
2. Opening balance 217,783,996.12 217,783,996.12
Other descriptions:
[Note] The differences between the opening balance of this year and the closing balance of the previous year (December 31,
2020) are detailed in Note V (31) to the financial statements.
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15. Intangible assets
(1) Intangible assets
In RMB
Patent licensing
Trademarks fees and
Land use Non-patent Film and television Game
Item Patent Software and domain program Total
rights technology series copyright copyright
names adaptation
rights
I. Original
carrying amount
1. Opening 201,934,240 3,168,013.1
33,157,507.40 16,948,218,630.49 40,660,377.35 7,189,504.61 17,234,328,273.25
balance .24 6
2. Increase in the 16,118,608.
5,319,320,806.62 47,169.81 19,133,746.86 5,354,620,331.92
current period 63
(1) Purchase 5,319,320,806.62 80,872.78 47,169.81 17,697,395.82 5,337,146,245.03
(2) In-house
16,037,735.
research and 16,037,735.85
85
development
(3) Increase due to
business 1,436,351.04 1,436,351.04
combinations
3. Decrease in the 24,738,370.
770,291,232.08 119,123.94 471,698.10 795,620,425.06
current period 94
(1) Disposal 770,291,232.08 879,702.28 119,123.94 471,698.10 771,761,756.40
(2) Disposal of 23,858,668.
23,858,668.66
subsidiaries 66
193,314,477 3,096,059.0
4. Closing balance 33,157,507.40 21,497,248,205.03 40,660,377.35 25,851,553.37 21,793,328,180.11
.93 3
II. Accumulated
amortization
1. Opening 87,298,842. 2,972,173.9
6,484,886.60 11,216,976,515.56 19,596,604.25 6,544,850.63 11,339,873,873.57
balance 63 0
2. Increase in the 19,748,018.
676,683.82 4,753,940,750.04 126,461.63 5,680,399.20 11,015,414.55 4,791,187,727.82
current period 58
19,748,018.
(1) Provision 676,683.82 4,753,940,750.04 126,461.63 5,680,399.20 10,926,866.00 4,791,099,179.27
58
172
2021 Annual Report of Mango Excellent Media Co., Ltd.
2) Increase due to
business 88,548.55 88,548.55
combinations
3. Decrease in the 10,821,267.
770,291,232.08 112,639.40 183,438.21 781,408,577.23
current period 54
(1) Disposal 770,291,232.08 810,717.52 112,639.40 183,438.21 771,398,027.21
2) Disposal of 10,010,550.
10,010,550.02
subsidiaries 02
96,225,593. 2,985,996.1
4. Closing balance 7,161,570.42 15,200,626,033.52 25,277,003.45 17,376,826.97 15,349,653,024.16
67 3
III. Provision for
impairment
1. Opening
balance
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Closing balance
VI. Book value
97,088,884.
1. Closing balance 25,995,936.98 6,296,622,171.51 110,062.90 15,383,373.90 8,474,726.40 6,443,675,155.95
26
2. Opening 114,635,397
26,672,620.80 5,731,242,114.93 195,839.26 21,063,773.10 644,653.98 5,894,454,399.68
balance .61
Proportion of intangible assets generated from the Company’s in-house research and development to the balance of intangible assets
at the end of the period: 0.18%.
(2) Land use right for which the title certificate is not completed
In RMB
Item Carrying amount Reason for incompletion of title certificate
Other descriptions:
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2021 Annual Report of Mango Excellent Media Co., Ltd.
16. Development expenditure
In RMB
Increase in the current period Decrease in the current period
Opening In-house Recognized Transfer to Closing
Item Disposal of
balance development Others intangible current profit balance
subsidiaries
expenditure assets or loss
Cloud
platform 151,189,987. 97,370,501.7 16,037,735.8 232,522,753.
construction 35 4 5 24
project
Smart credit
6,074,244.50 6,074,244.50
system
157,264,231. 97,370,501.7 16,037,735.8 232,522,753.
Total 6,074,244.50
85 4 5 24
Other descriptions
Mongo TV Cloud Storage and Multi-Screen Broadcast Platform Construction Project (“Cloud Platform Construction 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
Hunantv.com 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.
17. Long-term prepaid expenses
In RMB
Increase in the
Item Opening balance Amortization Other decrease Closing balance
current period
Projects of
rebuilding and
77,342,051.99 56,801,478.08 19,340,593.74 955,455.12 113,847,481.21
decoration for rented
buildings
Total 77,342,051.99 56,801,478.08 19,340,593.74 955,455.12 113,847,481.21
Other descriptions
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2021 Annual Report of Mango Excellent Media Co., Ltd.
18. Deferred tax assets/deferred tax liabilities
(1) Details of deferred tax assets not offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
(2) Details of deferred tax liabilities not offset
In RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
(3) Deferred tax assets or liabilities presented on a net basis
In RMB
Closing offset amount Opening offset amount
Closing balance of Opening balance of
between deferred tax between deferred tax
Item deferred tax assets or deferred tax assets or
assets and deferred tax assets and deferred tax
liabilities after offset liabilities after offset
liabilities liabilities
(4) Details of unrecognized deferred tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences 37,086,125.59 19,411,205.95
Deductible losses 453,456,947.42 106,310,201.58
Total 490,543,073.01 125,721,407.53
(5) Deductible losses, for which no deferred tax assets are recognized, will expire in the following year
In RMB
Year Closing balance Opening balance Remark
2021 390,483.62
2022 16,360,098.46 18,240,181.33
2023 34,007,431.00 34,021,526.74
2024 383,268.85 3,629,802.99
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2021 Annual Report of Mango Excellent Media Co., Ltd.
2025 40,704,936.96 50,028,206.90
2026 362,001,212.15
Total 453,456,947.42 106,310,201.58 --
Other descriptions:
19. Other non-current assets:
In RMB
Closing balance Opening balance
Item provision for Carrying provision for Carrying
Book balance Book balance
impairment amount impairment amount
Prepayments for equipment 1,260,178.59 1,260,178.59 2,023,481.01 2,023,481.01
Total 1,260,178.59 1,260,178.59 2,023,481.01 2,023,481.01
Other descriptions:
20. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Item Closing balance Opening balance
Credit borrowings - principal 39,731,500.00 39,731,500.00
Credit borrowings - interest 55,403.37 57,610.68
Total 39,786,903.37 39,789,110.68
Descriptions of categorization of short-term borrowings:
(2) Short-term borrowings overdue but not repaid
The short-term borrowings overdue but not repaid amount to RMB ____ at the end of the Reporting Period. Details of significant
short-term borrowings overdue but not repaid are as follows:
In RMB
Borrower Closing balance Interest rate Overdue period Interest rate overdue
Other descriptions:
21. Notes payable
In RMB
Category Closing balance Opening balance
Commercial acceptances 349,649,263.65 221,862,982.11
176
2021 Annual Report of Mango Excellent Media Co., Ltd.
Bank acceptances 571,855,441.26 490,429,053.64
Total 921,504,704.91 712,292,035.75
The total of notes payable due but not yet paid for the period is RMB0.00.
22. Accounts payable
(1) Accounts payable
In RMB
Item Closing balance Opening balance
Payments for purchase of engineering
4,960,935,241.83 5,217,087,330.62
equipment and goods
Total 4,960,935,241.83 5,217,087,330.62
(2) Significant accounts payable aged over one year
In RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
The first 93,447,650.88 Not yet due for settlement
The second 71,520,170.79 Not yet due for settlement
The third 50,943,396.23 Not yet due for settlement
The fourth 50,395,471.69 Not yet due for settlement
The fifth 49,111,077.45 Not yet due for settlement
The sixth 37,735,848.35 Not yet due for settlement
Total 353,153,615.39 --
Other descriptions:
23. Contract liabilities
In RMB
Item Closing balance Opening balance
Goods payments 551,341,131.10 663,307,479.05
Investments in film and television series
103,960,965.03 146,186,845.74
co-production
Membership service 671,991,967.72 520,980,698.31
Total 1,327,294,063.85 1,330,475,023.10
Significant changes in the carrying amount during the Reporting Period and reasons therefor:
177
2021 Annual Report of Mango Excellent Media Co., Ltd.
In RMB
Item Changes Reason for changes
24. Employee benefits payable
(1) Employee benefits payable
In RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term
856,456,598.89 1,780,202,983.13 1,657,443,964.04 979,215,617.98
remuneration
II. Post-employment
benefits-defined benefit 65,780.84 42,702,391.48 42,209,123.21 559,049.11
plan
III. Termination benefits 190,448.11 9,655,632.30 9,226,633.30 619,447.11
Total 856,712,827.84 1,832,561,006.91 1,708,879,720.55 980,394,114.20
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wages or salaries,
bonuses, allowances and 855,078,368.08 1,687,238,449.99 1,564,375,094.76 977,941,723.31
subsidies
2. Employee welfare
34,106,373.31 34,100,093.31 6,280.00
expenses
3. Social security
319,371.91 26,362,981.40 26,402,482.13 279,871.18
contributions
Including: Medical
310,028.34 20,825,143.55 20,875,943.19 259,228.70
insurance
Work-related
2,291.19 1,402,236.11 1,391,456.58 13,070.72
injuries insurance
Maternity
7,052.38 308,719.57 308,200.19 7,571.76
insurance
Other
3,826,882.17 3,826,882.17
commercial insurance
4. Housing funds 324,675.23 28,408,412.49 28,547,196.72 185,891.00
5. Union running costs
734,183.67 4,086,765.94 4,019,097.12 801,852.49
and employee education
178
2021 Annual Report of Mango Excellent Media Co., Ltd.
cost
Total 856,456,598.89 1,780,202,983.13 1,657,443,964.04 979,215,617.98
(3) Defined benefit plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pensions 63,004.63 41,086,416.57 40,608,074.57 541,346.63
2. Unemployment
2,776.21 1,615,974.91 1,601,048.64 17,702.48
insurance
Total 65,780.84 42,702,391.48 42,209,123.21 559,049.11
Other descriptions:
25. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 18,212,095.97 17,317,973.41
Enterprise income tax 58,276.74 4,183,186.13
Personal Income Tax 12,409,994.97 17,925,339.96
City maintenance and construction tax 1,082,825.71 422,228.46
Stamp duty 2,101,365.54 2,395,805.75
Education surcharges 773,440.32 315,577.50
Development fee for cultural undertakings 88,789,083.88 88,789,083.88
Other taxes 47,506.59 178,690.86
Total 123,474,589.72 131,527,885.95
Other descriptions:
26. Other payables
In RMB
Item Closing balance Opening balance
Other payables 149,086,160.61 160,651,194.91
Total 149,086,160.61 160,651,194.91
(1) Interest payable
In RMB
179
2021 Annual Report of Mango Excellent Media Co., Ltd.
Item Closing balance Opening balance
Significant interest overdue but not paid
In RMB
Borrower Overdue amount Reason for overdue
Other descriptions:
(2) Dividends payable
In RMB
Item Closing balance Opening balance
Other descriptions, including the disclosure of the reasons for failure of payment for significant dividends payable unpaid over one
year.
(3) Other payables
1) Other payables by nature
In RMB
Item Closing balance Opening balance
Receivables and payables 125,133,366.15 131,046,966.11
Security deposit 23,952,794.46 29,604,228.80
Total 149,086,160.61 160,651,194.91
2) Other significant payables aged over one year
In RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
The first 3,795,949.15 Not yet due for settlement
Total 3,795,949.15 --
Other descriptions
27. Non-current liabilities due within one years
In RMB
Item Closing balance Opening balance
Lease liabilities due within 1 year 43,098,562.04 48,596,782.45
Total 43,098,562.04 48,596,782.45
Other descriptions:
180
2021 Annual Report of Mango Excellent Media Co., Ltd.
[Note] The differences between the opening balance of this year and the closing balance of the previous year (December 31,
2020) are detailed in Note V (31) to the financial statements.
28. Other current liabilities
In RMB
Item Closing balance Opening balance
Logistics and distribution expenses 2,219,436.05 1,909,886.62
Output tax to be transferred 106,144,514.31 106,261,801.24
Expenses for internet access cooperation 12,861,922.09 24,923,744.58
Notes endorsed but not derecognized [note] 210,748,000.00
Others 7,061,685.54 5,603,393.15
Total 339,035,557.99 138,698,825.59
Changes in short-term bonds payable:
In RMB
Interest
Amortization Repayment
Name of Term of Issue Opening Issue for accrued Closing
Par value Issue date of premiums for the
bond bond amount balance the period based on balance
or discounts period
par value
Total -- -- --
Other descriptions:
[Note] Notes endorsed but not derecognized are bank acceptances of small-sized commercial banks that have been endorsed
but not derecognize at the end of the Reporting Period.
29. Lease liabilities
In RMB
Item Closing balance Opening balance
Leased houses and buildings 169,643,622.50 168,778,053.34
Total 169,643,622.50 168,778,053.34
Other descriptions
[Note] The differences between the opening balance of this year and the closing balance of the previous year (December 31,
2020) are detailed in Note V (31) to the financial statements.
30. Estimated liabilities
In RMB
Item Closing balance Opening balance Reason
181
2021 Annual Report of Mango Excellent Media Co., Ltd.
Estimated compensation for
Pending litigation 13,815,868.00 8,305,486.15
pending litigation
Total 13,815,868.00 8,305,486.15 --
Other descriptions, including important assumptions and estimation explanations related to significant estimated liabilities:
31. Deferred income
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government grants
Governmental grants 48,938,835.69 15,550,000.00 18,971,063.88 45,517,771.81 related to assets and
income
Total 48,938,835.69 15,550,000.00 18,971,063.88 45,517,771.81 --
Projects involving government grants
In RMB
Amount Amount
Additional recognized Amount offset
Opening Other Related to
Liabilities government in recognized in against Closing balance
balance changes assets/income
grants non-operatin other income costs and
g income expenses
Special funds for culture
18,493,278.47 5,000,000.00 3,549,291.66 19,943,986.81 Related to assets
industry development
Subsidy for Youth
7,333,333.33 3,000,000.00 1,600,000.00 8,733,333.33 Related to assets
Mango Night Project
Mango Offline
Immersion Experience 3,000,000.00 3,000,000.00 Related to assets
Project
Happigo Supply Chain
Urban Co-Distribution 2,483,002.83 100,000.00 2,383,002.83 Related to assets
System Project
“Project Investment
Support” for Malanshan
Investment Invitation 2,400,000.00 107,998.94 2,292,001.06 Related to assets
and Industry
Development
Special Funds for
Construction of 2,000,000.00 2,000,000.00 Related to assets
Innovative Province
Special Funds for
2,616,038.96 1,646,039.06 969,999.90 Related to assets
Development of Mobile
182
2021 Annual Report of Mango Excellent Media Co., Ltd.
Internet Industry
Special Funds for
Development of Modern 975,558.74 40,229.22 935,329.52 Related to assets
Logistics
Others 960,918.81 150,000.00 276,933.97 833,984.84 Related to assets
Funds for Guiding
Development of
733,333.48 399,999.96 333,333.52 Related to assets
Provincial Culture
Undertakings
Network Audiovisual
Program Quality
186,000.00 72,000.00 114,000.00 Related to assets
Creation and
Dissemination Project
Special Funds for
Development of Modern 120,000.00 60,000.00 60,000.00 Related to assets
Services
Second Special Funds
for Development of
80,000.00 60,000.00 20,000.00 Related to assets
Modern Services-Mango
TV App
Silk Road Film and
Television Bridge
Project of State 566,037.74 566,037.74 Related to assets
Administration of Radio,
Film, and Television
Mango TV International
Media Integration and 4,000,000.00 1,940,200.00 2,059,800.00 Related to proceeds
Communication Project
Subsidy for Guiding
Development of Hunan 1,241,333.33 284,000.00 957,333.33 Related to proceeds
Culture Undertakings
Mango TV Smart Home
1,000,000.00 233,333.33 766,666.67 Related to proceeds
Page Push Project
Mango TV High-tech
Interactive Video
150,000.00 35,000.00 115,000.00 Related to proceeds
Creation Platform
Project
Second Special Funds
for Development of
8,000,000.00 8,000,000.00 Related to proceeds
Modern Services of
Hunan Province
183
2021 Annual Report of Mango Excellent Media Co., Ltd.
Sub-total 48,938,835.69 15,550,000.00 18,971,063.88 45,517,771.81
Other descriptions:
32. Share capital
In RMB
Increase or decrease (+,-)
Opening balance Capitalization of Closing balance
New shares Bonus shares Others Sub-total
capital reserve
Total shares 1,780,377,511.00 90,343,304.00 90,343,304.00 1,870,720,815.00
Other descriptions:
In accordance with resolutions of the 32nd meeting and the 34th meeting of the third session of the Board of Directors, the
resolution of the 1st Extraordinary General Meeting of 2020, and CSRC’s Official Reply on Approving the Registration of Share
Offering to Special Objects by Mango Excellent Media (Zheng Jian Xu Ke [2021] No. 2105), the Company is approved to issue
shares to specific persons for raising funds not exceeding RMB4.5 billion. The actual total amount of funds raised by the Company is
RMB4,499,999,972.24, with a net amount of RMB4,485,792,101.20 after deducting underwriting fees, attorney's fees, capital
verification and other expenses (excluding tax) totaled RMB14,207,871.04, in which RMB90,343,304.00 is recognized in paid-in
capital and RMB4,395,448,797.20 is recognized in capital reserve (equity premium). Pan-China Certified Public Accountants LLP
has made an audit for verification of this additional capital contribution and issued a Capital Verification Report (Tian Jian Yan
[2021] No. 2-29) on August 10, 2021.
33. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (Share
4,832,673,268.51 4,405,448,797.20 9,238,122,065.71
capital premium)
Other capital reserve 6,264,437.84 6,264,437.84
Total 4,838,937,706.35 4,405,448,797.20 9,244,386,503.55
Other descriptions, including changes and reasons therefor:
1) The increase in capital premium (share capital premium) is due to the capital premium of RMB4,395,448,797.20 resulting
from the issuance of shares by the Company to specific persons detailed in Note VII (I) 32 to the financial statements.
2) In 2021, the Company received a state-owned capital of RMB10,000,000.00 from cultural enterprises under provincial
administration.
34. Other comprehensive income
In RMB
Amount for the current period
Opening Closing
Item Amount Less: Amount Less: Amount Less: Attributable Attributable to
balance balance
before income included in included in Income to the parent minority
184
2021 Annual Report of Mango Excellent Media Co., Ltd.
tax for the other other tax company interests after
current period comprehensive comprehensive expenses after tax tax
income for the income for the
prior periods prior periods
and transferred and transferred
to the profit or to the retained
loss for the earnings for
current period the current
period
II. Other comprehensive
income that will be -2,759.37 -11,023.81 -11,023.81 -13,783.18
reclassified to profit or loss
Translation differences of
financial statements
-2,759.37 -11,023.81 -11,023.81 -13,783.18
denominated in foreign
currencies
Total of other
-2,759.37 -11,023.81 -11,023.81 -13,783.18
comprehensive income
Other descriptions, including adjustment of the effective part of the cash flow hedge gains and losses transferred to initially
recognized amount of hedged items:
35. Surplus reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory capital reserves 87,139,560.14 17,885,823.15 105,025,383.29
Total 87,139,560.14 17,885,823.15 105,025,383.29
Descriptions of surplus reserve, including changes for the current period and reasons therefor: current increase of statutory capital
reserves is accrued based on 10% of net profits of parent company.
36. Undistributed profit
In RMB
Item Amount for the current period Amount for the prior period
Undistributed profits at the end of prior period
3,881,526,167.30 2,079,761,680.01
before adjustment
Undistributed profits at the beginning of the
3,881,526,167.30 2,079,761,680.01
period after adjustment
Add: Net profit attributable to owners of the
2,114,090,171.85 1,982,159,476.82
parent company for the period
185
2021 Annual Report of Mango Excellent Media Co., Ltd.
Less: Appropriation to statutory surplus reserve 17,885,823.15 2,357,238.43
Dividends payable for ordinary shares 231,449,076.43 178,037,751.10
Undistributed profits at the end of the period 5,746,281,439.57 3,881,526,167.30
Details of adjustments to undistributed profits at the beginning of the period:
1) Undistributed profits at the beginning of the period were affected by RMB due to the retrospective adjustment under the
Accounting Standards for Business Enterprises and related new regulations.
2) Undistributed profits at the beginning of the period were affected by RMB due to changes in accounting policies.
3) Undistributed profits at the beginning of the period were affected by RMB due to the correction of significant accounting errors.
4) Undistributed profits at the beginning of the period were affected by RMB due to changes in the scope of consolidation resulting
from business combination involving enterprises under common control.
5) Undistributed profits at the beginning of the period were affected by RMB in total due to other adjustments.
37. Operating income and operating costs
In RMB
Amount for the current period Amount for the prior period
Item
Revenue Cost Revenue Cost
Principal operating activities 15,335,407,048.03 9,896,297,197.78 13,991,615,817.08 9,224,019,161.88
Other operating activities 20,456,434.04 9,165,573.04 13,919,138.28 6,269,482.56
Total 15,355,863,482.07 9,905,462,770.82 14,005,534,955.36 9,230,288,644.44
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
Including:
Internet video business of Mango TV 11,261,249,957.21 11,261,249,957.21
New media interactive entertainment content
1,877,457,854.82 1,877,457,854.82
production and operation
Content E-business 2,157,213,530.01 2,157,213,530.01
Others 40,799,013.60 40,799,013.60
By operating regions 15,336,720,355.64 15,336,720,355.64
Including:
Within Hunan province 4,205,633,567.18 4,205,633,567.18
Outside Hunan province 11,131,086,788.46 11,131,086,788.46
Type of market or customer 15,336,720,355.64 15,336,720,355.64
186
2021 Annual Report of Mango Excellent Media Co., Ltd.
Including:
Type of contract
Including:
By the time of commodity transfer
Including:
Revenue recognized at a certain time point 9,206,687,860.72 9,206,687,860.72
Revenue recognized over a certain period of
6,130,032,494.92 6,130,032,494.92
time
By the contract term 15,336,720,355.64 15,336,720,355.64
Including:
By the selling channel
Including:
Total
Information regarding performance obligations:
Incomes generated from contracts with customers are RMB 15,336,720,355.64.
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 RMB1,223,333,098.82, 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
38. Taxes and levies
In RMB
Item Amount for the current period Amount for the prior period
Consumption tax 178,896.89 280,585.49
City maintenance and construction tax 12,005,462.97 10,756,920.01
Education surcharges 8,610,998.23 7,721,309.79
Property tax 662,834.77 648,464.10
Land use rights 294,816.00 294,816.00
Vehicle and vessel tax 34,420.00 30,730.00
Stamp duty 5,092,020.91 2,190,238.78
187
2021 Annual Report of Mango Excellent Media Co., Ltd.
Others 13,040.75 54,686.31
Total 26,892,490.52 21,977,750.48
Other descriptions:
39. Selling expenses
In RMB
Item Amount for the current period Amount for the prior period
Employee’s benefits and labor costs 732,215,078.75 649,713,450.73
Depreciation and amortization 12,874,964.32 11,258,434.02
Advertising costs 1,385,934,490.67 1,275,774,161.48
Expenses for internet access cooperation 50,041,434.51 104,333,924.97
Settlement costs of logistics and service
4,916,911.14 6,646,826.33
charges for payment collection
Business travel expenses 27,363,866.16 24,555,943.68
Program production costs 22,105,723.12 4,706,447.54
Channel sales and operations development
195,904,288.97 49,839,615.85
expenses
Others 37,971,455.00 37,586,465.27
Total 2,469,328,212.64 2,164,415,269.87
Other descriptions:
40. General and administrative expenses
In RMB
Item Amount for the current period Amount for the prior period
Employee’s benefits and labor costs 467,964,670.43 428,389,317.79
Depreciation and amortization 63,382,058.67 45,517,534.33
Legal costs 11,964,048.12 12,643,454.90
Office and administrative service 104,503,482.74 90,263,227.76
Agency fees 13,626,103.94 8,368,627.11
Business entertainment expenses 2,749,458.11 2,567,649.76
Others 31,744,789.77 41,450,911.08
Total 695,934,611.78 629,200,722.73
Other descriptions:
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2021 Annual Report of Mango Excellent Media Co., Ltd.
41. Research and development expenses
In RMB
Item Amount for the current period Amount for the prior period
Employee’s benefits and labor costs 121,946,092.84 78,237,277.89
Depreciation and amortization 15,098,549.93 12,030,086.93
Technical service fees 129,004,804.77 88,241,580.19
Others 5,941,955.86 5,876,003.71
Total 271,991,403.40 184,384,948.72
Other descriptions:
42. Financial expenses
In RMB
Item Amount for the current period Amount for the prior period
Interest expenses 2,630,663.17 13,770,536.66
Less: interest income 125,145,189.95 116,608,027.78
Finance discount 238,406.56
Service charge 16,108,222.86 16,999,003.73
Interest expenses from lease liabilities 5,819,271.54
Foreign exchange gains and losses -623,304.79 -542,960.12
Total -101,210,337.17 -86,619,854.07
Other descriptions:
43. Other income
In RMB
Source of other income Amount for the current period Amount for the prior period
Government grants related to assets 8,478,530.55 20,304,477.81
Government grants related to income 27,521,238.14 29,158,039.45
Refund of service fees of withholding
3,750,717.93 6,044,849.19
personal income tax
Additional VAT deduction 83,583,732.93 97,244,205.84
Total 123,334,219.55 152,751,572.29
44. Investment income
In RMB
189
2021 Annual Report of Mango Excellent Media Co., Ltd.
Item Amount for the current period Amount for the prior period
Income from long-term equity investments under equity
999,547.86 1,742,610.53
method
Income from disposal of long-term equity investments 771,197.65 70,437,276.18
Income from investments in film and television series without
1,193,136.19 4,706,280.41
copyrights
Income from wealth management products 34,265,617.23 3,906,349.28
Total 37,229,498.93 80,792,516.40
Other descriptions:
45. Impairment losses of credit
In RMB
Item Amount for the current period Amount for the prior period
Bad debt losses of other receivables -990,116.77 -1,273,395.96
Bad debt losses of accounts receivable -40,907,026.53 -49,083,327.37
Other current assets-losses of impairment on issued loans -2,024,723.79 -2,230,274.05
Total -43,921,867.09 -52,586,997.38
Other descriptions:
46. Impairment losses of assets
In RMB
Item Amount for the current period Amount for the prior period
I. Bad debt losses -21,417,042.28
II. Losses from decline in value of inventories and
-59,299,155.29 -2,171,659.78
impairment of contract performance costs
XII. Impairment losses of contractual assets -8,787,239.21 -13,213,182.37
Total -68,086,394.50 -36,801,884.43
Other descriptions:
47. 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 long-term assets -85,941.70 354,684.48
Total -85,941.70 354,684.48
190
2021 Annual Report of Mango Excellent Media Co., Ltd.
48. 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 1,994,903.35 3,249,641.40 1,994,903.35
Income from safeguarding legal
18,826,660.47 21,772,303.69 18,826,660.47
rights
Others 1,028,932.95 1,864,339.26 1,028,932.95
Total 21,850,496.77 26,886,284.35 21,850,496.77
Government grants included in profit and loss for the current period
In RMB
If the grants
Amount for Amount for
affect earnings or If special Related to
Project Issuer Reason Nature the current the prior
losses for the grants assets/income
period period
current year
Other descriptions:
49. Non-operating expenses
In RMB
Amount for the Amount included in the non-recurring profit or
Item Amount for the prior period
current period loss for the current period
Outbound donations 2,046,319.26 2,576,237.35 2,046,319.26
Losses from damage and
183,897.04 736,201.04 183,897.04
retirement of non-current assets
Compensation expenditures 20,277,175.00 26,032,164.94 20,277,175.00
COVID-19-related expenses 19,931,072.18 15,627,676.21 19,931,072.18
Others 861,806.48 1,563,601.45 861,806.48
Total 43,300,269.96 46,535,880.99 43,300,269.96
Other descriptions:
50. Income tax expenses
(1) Table of income tax expenses
In RMB
Item Amount for the current period Amount for the prior period
191
2021 Annual Report of Mango Excellent Media Co., Ltd.
Current income tax expenses 4,357.00 7,411,218.58
Total 4,357.00 7,411,218.58
(2) Reconciliation of income tax expenses to the accounting profit
In RMB
Item Amount for the current period
Total profit 2,114,484,072.08
Income tax expense calculated based on statutory/applicable tax rate 528,621,018.02
Effect of different tax rates of subsidiaries operating in other jurisdictions -571,930,564.57
Effect of adjustment on income tax for the period 4,357.00
Effect of non-taxable income -249,886.97
Effect of non-deductible cost, expense and loss 281,227.53
Effect of utilizing deductible loss not recognized for deferred tax assets for prior period -1,179,586.42
Effect of deductible temporary difference or deductible loss not recognized for deferred tax
44,457,792.41
assets for the current period
Income tax expense 4,357.00
Other descriptions
51. Other comprehensive income
Refer to note for details.
52. 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
Governmental grants 32,578,704.81 72,405,901.23
Interest income 125,145,189.95 116,608,027.78
Income from safeguarding legal rights 18,826,660.47 21,772,303.69
Receivables and payables and others 18,587,427.72 42,882,989.51
Total 195,137,982.95 253,669,222.21
Descriptions of other cash receipts relating to operating activities:
(2) Other cash payments relating to operating activities
In RMB
192
2021 Annual Report of Mango Excellent Media Co., Ltd.
Item Amount for the current period Amount for the prior period
Payments of various expenses 1,920,961,411.48 1,721,402,373.87
Band service charges 16,108,222.86 16,999,003.73
Others 58,023,952.39 48,836,058.38
Total 1,995,093,586.73 1,787,237,435.98
Descriptions of other cash payments relating to operating activities:
(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
5,326,000,000.00 622,500,000.00
products
Income from wealth management products 34,265,617.23 3,906,349.28
Income from investments in copyrights
1,193,136.18
where the investor has no copyrights
Amount due to/from Happy Money 130,000,000.00
Total 5,491,458,753.41 626,406,349.28
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
Purchase of wealth management products 8,736,000,000.00 622,500,000.00
Total 8,736,000,000.00 622,500,000.00
Descriptions of other cash payments relating to investing activities:
(5) Other cash receipts relating to financing activities
In RMB
Item Amount incurred in the current period Amount incurred in the prior period
Descriptions of other cash receipts relating to financing activities:
(6) Other cash payments relating to financing activities
In RMB
Item Amount for the current period Amount for the prior period
193
2021 Annual Report of Mango Excellent Media Co., Ltd.
Lease payment 64,826,084.84
Payment of intermediary financing fees 1,000,323.87
Total 65,826,408.71
Descriptions of other cash payments relating to financing activities:
53. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
In RMB
Supplementary information Amount in the current period Amount in prior period
1. Reconciliation of net profit to cash flow from operating
-- --
activities:
Net profit 2,114,479,715.08 1,979,336,549.33
Add: Provision for impairment losses of assets 112,008,261.59 89,388,881.81
Depreciation of fixed assets, depletion of oil and gas assets,
43,223,108.33 44,829,216.08
depreciation of bearer biological assets
Depreciation of right of use assets 52,187,591.16
Amortization of intangible assets 4,791,099,179.27 4,365,366,952.18
Amortization of long-term prepaid expenses 19,340,593.74 25,691,871.99
Losses on disposal of fixed assets, intangible assets and other
85,941.70 -354,684.48
long-term assets (gains are indicated by “－”)
Losses on retirement of fixed assets (gains are indicated by “－”) 183,897.04 736,201.04
Income from changes in fair value (gains are indicated by “-”)
Financial expenses (gains are indicated by “－”) 7,826,629.92 13,227,576.54
Investment losses (gains are indicated by “－”) -37,229,498.93 -80,792,516.40
Decrease in deferred tax assets (increase is indicated by “－”)
Increase in deferred tax liabilities (decrease is indicated by “－”)
Decrease in inventories (increase is indicated by “－”) -88,521,247.99 253,879,071.02
Decrease in receivables from operating activities (increase is
-1,337,314,454.99 -1,256,428,867.09
indicated by “－”)
]Increase in payables from operating activities (decrease is
203,751,973.07 500,793,311.24
indicated by “－”)
Others -5,319,320,806.62 -5,354,703,210.18
Net cash flows from operating activities 561,800,882.37 580,970,353.08
2. Significant investing and financing activities that do not involve
-- --
cash receipts and payments:
194
2021 Annual Report of Mango Excellent Media Co., Ltd.
Conversion of debt into capital
Convertible corporate bonds due within 1 year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents: -- --
Closing balance of cash 6,911,377,914.18 5,314,463,484.01
Less: opening balance of cash 5,314,463,484.01 5,041,075,499.16
Add: Closing balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 1,596,914,430.17 273,387,984.85
(2) Net cash payments for acquisition of subsidiaries in the current period
In RMB
Amount
Cash or cash equivalents paid for business combination incurred in the current period 1,500,000.00
Including: --
Shenzhen Zhonghe Boao Technology Development Co., Ltd. 1,500,000.00
Less: cash and cash equivalents held by subsidiaries at the acquisition date 13,019.91
Including: --
Shenzhen Zhonghe Boao Technology Development Co., Ltd. 13,019.91
Including: --
Net cash payment for acquisition of subsidiaries 1,486,980.09
Other descriptions:
(3) Net cash receipts for disposal of subsidiaries in the current period
In RMB
Amount
Cash or cash equivalents received from disposal of subsidiaries in the current period 304,249,700.00
Including: --
Hunan Happy Money Microfinance Co., Ltd. 304,249,700.00
Less: cash and cash equivalents held by subsidiaries at the date of losing control 58,689,802.33
Including: --
Hunan Happy Money Microfinance Co., Ltd. 58,689,802.33
Including: --
Net cash receipts from disposal of subsidiaries 245,559,897.67
195
2021 Annual Report of Mango Excellent Media Co., Ltd.
Other descriptions:
(4) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 6,911,377,914.18 5,314,463,484.01
Including: cash on hand 42,803.61 86,976.40
Bank deposit that can be paid at any
6,890,884,946.24 5,296,358,510.78
time
Other monetary funds that can be paid
20,450,164.33 18,017,996.83
at any time
III. Closing balance of cash and cash
6,911,377,914.18 5,314,463,484.01
equivalents
Other descriptions:
54. Notes to items in the statement of changes in owners’ equity
Description of the name of “other” item whose closing balance of the prior year has been adjusted and the amount adjusted:
55. Assets with restrictions in ownership or use right
In RMB
Item Closing balance Reason for restriction
Frozen amounts due to litigation, POS
Cash and bank balances 63,087,237.63 deposits and third-party platform account
deposits
Commercial notes endorsed but not
Notes receivable 210,748,000.00
matured yet
Total 273,835,237.63 --
Other descriptions:
56. 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 -- -- 3,716,365.26
196
2021 Annual Report of Mango Excellent Media Co., Ltd.
Including: USD 582,527.63 6.376 3,714,196.17
EUR 2,651.70 0.818 2,169.09
HKD
Accounts receivable -- -- 9,178,252.00
Including: USD 1,439,500.00 6.376 9,178,252.00
EUR
HKD
Long-term borrowings -- --
Including: USD
EUR
HKD
Accounts payable 62,493,973.73
Including: USD 9,801,438.79 6.376 62,493,973.73
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
57. Government grants
(1) Basic information of government grants
In RMB
Amount included in profit or
Category Amount Line item
loss for the current period
Special funds for the development of the cultural industry 3,549,291.66 Other income 3,549,291.66
Youth Mango Night project subsidy 1,600,000.00 Other income 1,600,000.00
Happigo Supply Chain Urban Co-Distribution System
100,000.00 Other income 100,000.00
Project
“Project Investment Support” for Malanshan investment
107,998.94 Other income 107,998.94
attraction and industrial development
197
2021 Annual Report of Mango Excellent Media Co., Ltd.
Mobile internet industry development special fund 1,646,039.06 Other income 1,646,039.06
Special funds for the development of the modern logistics 40,229.22 Other income 40,229.22
Other 276,933.97 Other income 276,933.97
Guidance funds for provincial-level cultural industry
399,999.96 Other income 399,999.96
development
Network audio-visual program quality creation and
72,000.00 Other income 72,000.00
distribution project
Special funds for the development of modern services 60,000.00 Other income 60,000.00
The second batch of special funds for modern services
60,000.00 Other income 60,000.00
development - Mango TV mobile client
Silk Road Film and Television Bridge Project of the State
566,037.74 Other income 566,037.74
Administration of Radio, Film and Television
Mango TV international convergence media
1,940,200.00 Other income 1,940,200.00
communication project
Guidance fund subsidies for cultural business of Hunan
284,000.00 Other income 284,000.00
Province
Mango TV smart home page push project 233,333.33 Other income 233,333.33
Mango TV high-tech interactive video creation platform
35,000.00 Other income 35,000.00
project
The second batch of special funds for the development of
8,000,000.00 Other income 8,000,000.00
modern services in Hunan Province
Awards for enterprises in Malanshan Cultural and Creative
3,984,000.00 Other income 3,984,000.00
Industrial Park
Cultural service export awards from central special funds
1,750,000.00 Other income 1,750,000.00
for cultural industry development in 2021
Subsidy fund for training in work 1,163,500.00 Other income 1,163,500.00
Bonus for original creative innovation works 1,060,000.00 Other income 1,060,000.00
Project subsidy and reward fund 1,459,811.27 Other income 1,459,811.27
Financial support funds 877,679.25 Other income 877,679.25
Awards for economic development of Kaifu District 856,000.00 Other income 856,000.00
Special fund for development of e-commerce industry 820,000.00 Other income 820,000.00
Special awards from Changsha Municipal Government 690,000.00 Other income 690,000.00
“Project Investment Support” for Malanshan investment
600,000.00 Other income 600,000.00
attraction and industrial development
Job stabilization subsidy 595,328.61 Other income 595,328.61
Special fund for service outsourcing industry 560,000.00 Other income 560,000.00
Innovation reward 550,000.00 Carrying 550,000.00
198
2021 Annual Report of Mango Excellent Media Co., Ltd.
forward to the
current period
The sixth network original audio visual program
405,660.38 Line item 405,660.38
competition award
Subsidies for electricity related to outbreak 400,886.89 Other income 400,886.89
Guiding funds for high-quality development of business
300,000.00 Other income 300,000.00
economy in Chaoyang District
2020 economic development incentives 250,000.00 Other income 250,000.00
Financing innovation evaluation funds 250,000.00 Other income 250,000.00
Economic development incentives 211,000.00 Other income 211,000.00
Other 244,838.41 Other income 244,838.41
(2) Return of government grants
□Applicable √ N/A
Other descriptions:
58. Others
VIII. Changes in Scope of Consolidation
1. Business combination involving enterprises not under common control
(1) Business combinations involving enterprises not under common control
In RMB
Income of the Net profit of
Basis of acquiree from the acquiree
Timepoint of Cost of Ratio of Method of determining the from the
Name of the Acquisition
acquiring equity equity acquiring the acquisition acquisition
acquiree date
equity acquisition acquired equity acquisition date to the date to the
date end of the end of the
period period
The industrial
and
Shenzhen
commercial
Zhonghe
change
Boao
May 18, 2021 1,500,000.00 100.00% Acquisition May 31, 2021 procedures 186,325.12 137,300.68
Technology
have been
Development
completed
Co., Ltd.
and the
payment for
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2021 Annual Report of Mango Excellent Media Co., Ltd.
equity has
been made
Other descriptions:
(2) Combination cost and goodwill
In RMB
Combination cost
--Cash 1,500,000.00
--Fair value of assets other than cash
--Fair value of debts issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equities held before the acquisition date on the
acquisition date
--Others
Total combination costs 1,500,000.00
Less: Fair value of identifiable net assets acquired 1,439,370.54
Goodwill/difference between the lower combination costs and
the fair value of identifiable net assets
Descriptions of the method for determining the fair value of combination cost, contingent consideration and changes therein:
Note: The difference of RMB60,629.46 between the combination costs and the fair value of identifiable net assets acquired
represents the amortization amount of the assets from the evaluation base date to the acquisition date, which has been included in the
current profit or loss on the date of combination.
Main reasons for the formation of substantial goodwill:
Other descriptions:
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
In RMB
Fair value on the acquisition date Carrying amount on the acquisition date
Assets: 1,449,370.95 13,019.91
Cash and bank balances 13,019.91 13,019.91
Accounts receivable
Inventories
Fixed assets
Intangible assets 1,436,351.04
200
2021 Annual Report of Mango Excellent Media Co., Ltd.
Liabilities: 10,000.41 10,000.41
Borrowings
Accounts payable 10,000.41 10,000.41
Deferred tax liabilities
Net assets 1,439,370.54 3,019.50
Less: Minority interests
Net assets acquired 1,439,370.54 3,019.50
Method for determining the fair value of identifiable assets and liabilities:
All shareholders’ equity in Shenzhen Zhonghe Boao Technology Development Co., Ltd. acquired by the Company has been
evaluated by Carea Asset Appraisal Co., Ltd. who has issued an appraisal report Kai Yuan Ping Bao Zi 2020 (No. 035) therefor.
Contingent liabilities of the acquiree undertaken in business combination:
Other descriptions:
(4) Gains or losses arising from re-measurement of equity held before the acquisition date at fair value
Whether there is a business combination realized through multiple transactions by steps with control obtained during the reporting
period
□ Yes √ No
(5) Descriptions of inability to reasonably determine the combination consideration or the fair value of
identifiable assets and liabilities of the acquiree on the acquisition date or at the end of the corresponding
period
(6) Other descriptions
2. Business combination involving enterprises under common control
(1) Business combination involving enterprises under common control in the current period
In RMB
Basis of Income of the Net profit of
constituting combined the combined
Income of the Net profit of
Proportion of business Basis of party from party from
combined the merged
Name of the equity combination determining the beginning the beginning
Combination party during party during
combined acquired in involving the of the period of the period
date the the
party business enterprises combination in which the in which the
comparison comparison
combination under date combination combination
period period
common falls to the falls to the
control date of date of
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2021 Annual Report of Mango Excellent Media Co., Ltd.
combination combination
Other descriptions:
3. Reverse purchase
Basic information of the transaction, basis for the transaction to constitute a reverse purchase, whether assets and liabilities retained
by the listed company constitute businesses and the basis therefor, determination of consolidation costs, amount of adjustments to
equity in case of equity transactions and the calculation thereof:
4. Disposal of subsidiaries
Whether there was any circumstance under which a single disposal of the investment in subsidiaries led to control loss
√ Yes □ No
In RMB
Difference
between the Methods of Amount
Proporti Carrying
disposal price Fair Gains or determining transferred from
on of amount
Basis for and the shares of value of losses fair value of other
remainin of
establish net assets of the remainin arising from remaining comprehensive
Proceeds Disposal Time of g equity remainin
Name of Method of ing the subsidiary g equity re-measurem equity on income related
from proportion losing on the g equity
subsidiary disposal time of corresponding to on the ent of the date of to initial equity
disposal (%) control date of on the
losing disposal of date of remaining losing investment in
losing date of
control investments in losing equity at the control and the subsidiary to
control losing
the consolidated control fair value main investment
(%) control
financial assumptions income or loss
statements
Hunan
Happy Receipt
Money 304,249,7 May 31, of the
100.00% Sale 770,697.17 0.00% 0.00 0.00 0.00 N/A 0.00
Microfina 00.00 2021 transfer
nce Co., fund
Ltd.
Other descriptions:
Whether there is a disposal of investment in a subsidiary through multiple transactions by steps with loss of control over the
subsidiary in the current period
□ Yes √ No
5. Changes in the scope of combination for other reasons
Descriptions of changes in the scope of combination for other reasons (such as establishment of a new subsidiary and liquidation of a
subsidiary, etc.) and the relevant information:
1. Increase in the scope of combination
Company name Method of Timepoint of acquiring Capital contribution Proportion of
202
2021 Annual Report of Mango Excellent Media Co., Ltd.
acquiring equity contribution
equity
Hainan E.E. Media Co., Ltd. Establishment June 30, 2021 30,000,000.00 100.00%
Shanghai Mango Universe Culture Establishment December 13, 2021 10,000,000.00 100.00%
and Entertainment Co., Ltd.
2. Decrease in the scope of combination
Company name Method of disposing equity Timepoint of disposing equity
Happigo (Beijing) New Media Technology Co., Ltd. Deregistration April 12, 2021
Hangzhou Hemei Interactive Entertainment Technology Deregistration July 19, 2021
Co., Ltd.
6. Others
IX. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of enterprise group
Name of Main business Registered Shareholding ratio Method of
Business nature
subsidiary place address Direct Indirect acquisition
Shanghai
Happigo
Enterprise Shanghai Shanghai Commerce 100.00% Establishment
Development Co.,
Ltd.
Shanghai Establishment
Happivision
Advertising Shanghai Shanghai Commerce 100.00%
Communication
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
Happigo (Hunan) Changsha Changsha Storage 100.00% Business
203
2021 Annual Report of Mango Excellent Media Co., Ltd.
Supply Chain combination
Management Co., involving
Ltd. enterprises not
under 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 Business
Sunshine combination
Interactive Changsha Changsha Video 100.00% involving
Entertainment enterprises under
Media Co., Ltd. common control
Business
combination
Film &
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
Zhejiang Zhejiang 100.00%
Dongyang Tianyu Television combination
204
2021 Annual Report of Mango Excellent Media Co., Ltd.
Film and 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
Hainan E.E.
Hainan Hainan Culture media 100.00% Establishment
Media Co., Ltd.
Business
combination
Beijing Happy Beijing Beijing Culture media 100.00% involving
Mango Culture enterprises under
Media Co., Ltd. common control
Horgos Horgos Business
combination
Horgos Happy Culture media 100.00% involving
Sunshine Media enterprises under
Co., Ltd. common control
Business
Hunan Happy combination
Mangofun Changsha Changsha Game 100.00% involving
Technology Co., enterprises under
Ltd. common control
Shanghai Mango
Universe Culture
and Shanghai Shanghai Game 100.00% Establishment
Entertainment
Co., Ltd.
Happy Sunshine
Xingmang
Interactive Haikou Haikou Commerce 100.00% Establishment
Entertainment
Media Co., Ltd.
Happy Sunshine
Changsha Changsha Commerce 100.00% Establishment
Hongmang
205
2021 Annual Report of Mango Excellent Media Co., Ltd.
Education
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
Business
Shenzhen
combination
Zhonghe Boao
involving
Technology Changsha Shenzhen Game 100.00%
enterprises not
Development Co.,
under common
Ltd.
control
Descriptions of the difference between the shareholding ratio and the proportion of voting rights in a subsidiary:
Basis for holding half of the voting rights or below but still controlling the investee, and holding over half of the voting right but
having no control over the investee:
Basis for controls over significant structured entities included in consolidation scope:
Basis for determining the Company as the agent or the principal:
Other descriptions:
(2) Significant non-wholly owned subsidiaries
In RMB
Dividends declared for
Profit or loss attributable
Shareholding ratio by distribution to minority Closing balance of
Name of subsidiary to minority interests for
minority shareholders shareholders for the minority interests
the current period
current period
Hunan Mango Auto
Automobile Sales Co., 49.00% 448,680.70 30,763,885.84
Ltd.
Descriptions of the difference between the shareholding ratio of minority shareholders and their proportion of voting rights in a
subsidiary:
Other descriptions:
(3) Key financial information of significant non-wholly owned subsidiaries
In RMB
206
2021 Annual Report of Mango Excellent Media Co., Ltd.
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 278,910, 20,051,2 298,961, 230,291, 5,886,47 236,177, 95,213,4 13,358,8 108,572, 46,704,5
46,704,536.01
Automobil 162.12 33.70 395.82 484.49 0.82 955.31 39.53 62.09 301.62 36.01
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
1,008,991,70 -50,575,124.2 735,524,869. -39,939,680.6
Automobile 915,674.90 915,674.90 1,022,763.58 1,022,763.58
7.33 2 05 0
Sales Co.,
Ltd.
Other descriptions:
(4) Significant restrictions on the use of enterprise group assets and settlement of enterprise group debts
(5) Financial supports or other supports offered for the structured entities included in the scope of
consolidated financial statements
Other descriptions:
2. Transactions through which the share of the owner’s equity in the subsidiary has changed and the
control on the subsidiary is still maintained
(1) Descriptions of changes in the share of owner’s equity in the subsidiary
3. Interests in joint ventures or associates
(1) Summary of financial information of insignificant joint ventures and associates
In RMB
Closing balance/Amount for the current Opening balance/Amount for the prior
period period
207
2021 Annual Report of Mango Excellent Media Co., Ltd.
Joint ventures -- --
Total of the following items calculated based
-- --
on the shareholding ratio
Associates: -- --
Total carrying amount of investment 23,882,517.37 22,882,969.51
Total of the following items calculated based
-- --
on the shareholding ratio
--Net profit 999,547.86 1,742,610.53
--Total comprehensive income 999,547.86 1,742,610.53
Other descriptions
(2) Descriptions of significant restrictions on the ability of joint ventures or associates to transfer funds to
the Company
(3) Unrecognized commitments related to investments in joint ventures
(4) Contingent liabilities related to investments in joint ventures or associates
4. Significant joint operations
Name of joint Principal operation Shareholding ratio/share
Registration place Business nature
operation place Direct Indirect
Description of difference between shareholding ratio or share and voting right ratio in joint operation:
The basis for classifying a separate entity as a joint operation, if applicable:
Other descriptions
5. Interests in structured entities not included in the scope of consolidated financial statements
Descriptions of structured entities not included in the scope of consolidated financial statements:
6. Others
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.
208
2021 Annual Report of Mango Excellent Media Co., Ltd.
(I) Credit risk
Credit risk refers to the risk that a party of the financial instrument will default on its obligations resulting in financial loss to the
counterparty.
1. Management of credit risk
(1) Evaluation of credit
The Company assesses at each balance sheet date whether the credit risk of the underlying financial instruments has increased
significantly since initial recognition. In determining whether the credit risk has increased significantly since initial recognition, the
Company considers reasonable and supportable information that is available without undue cost or effort, including quantitative and
qualitative analysis based on historical data, ranking of external credit risks and forward-looking information. The Company
compares the risk of a default occurring on a financial instrument as at the balance sheet date with the risk of a default occurring on
the financial instrument as at the date of initial recognition based on individual financial instrument or a group of financial
instruments with similar credit risk characteristic, to determine the change of the risk of a default occurring on a financial instrument
over the expected life.
The Company considers the credit risk of financial instruments has increased significantly when one or more of the following
quantitative and qualitative criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of default over the remaining
life of the financial instruments as of the balance sheet date when comparing with that at initial recognition of the financial
instruments;
2) The qualitative criteria 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) 4, 7 and 9 to the financial statements hereof.
4. Credit risk exposure and credit risk concentration
The Company's credit risk is primarily from cash and bank balances and receivables. In order to control the risks associated with
aforementioned items, the Company has taken the following measures.
(1) Cash and bank balances
The credit risk of the Company is limited because the Company has deposited bank deposits and other monetary funds in banks
with high credit ratings.
(2) Receivables
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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 collateral is required since the Company only deals with third parties that are approved and creditworthy. The concentrated
credit risks are managed by customers. As of December 31, 2021, the Company is exposed to certain concentration of credit risks, as
the Company’s accounts receivable from top 5 customers have accounted for 53.39% of the total balance of accounts receivable
(December 31, 2020: 34.43%). The Company held no collateral or other credit ranking measures for the balance of accounts
receivable.
The maximum exposure to the Company is the carrying 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
Closing balance
Item Undiscounted contract
Carrying amount Within 1 year 1-3 years Over 3 years
amount
Bank borrowings 39,786,903.37 41,628,749.86 41,628,749.86
Notes payable 921,504,704.91 921,504,704.91 921,504,704.91
Accounts payable 4,960,935,241.83 4,960,935,241.83 4,960,935,241.83
Other payables 149,086,160.61 149,086,160.61 149,086,160.61
Other current liabilities 210,748,000.00 210,748,000.00 210,748,000.00
Lease liabilities 212,742,184.54 237,923,303.74 44,757,856.68 113,422,811.81 79,742,635.25
(including those due
within one year)
Sub-total 6,494,803,195.26 6,521,826,160.95 6,328,660,713.89 113,422,811.81 79,742,635.25
(Continued to above table)
Balance at the end of last year
Item Carrying Undiscounted
Within 1 year 1-3 years Over 3 years
amount contract amount
Bank borrowings 39,789,110.68 41,159,399.06 41,159,399.06
Notes payable 712,292,035.75 712,292,035.75 712,292,035.75
Accounts payable 5,217,087,330.62 5,217,087,330.62 5,217,087,330.62
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
(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
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market prices. Market risk mainly includes interest rate risk and currency risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Since the Company’s borrowings are at fixed interest rates, fluctuations in interest rates of borrowings will not
have a material impact on the Company’s total profits or shareholders' equity.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. Since the Company mainly operates in Mainland China with its principal activities denominated in RMB, its
exposure to the currency risk due to changes in market is not material.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies can be referred to in Note
VII. 56 to the financial statements hereof.
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
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value
-- -- -- --
measurement
(I) Held-for-trading
3,410,000,000.00 3,410,000,000.00
financial assets
1. Financial assets at fair
value through profit or 3,410,000,000.00 3,410,000,000.00
loss
(3) Derivative financial
3,410,000,000.00 3,410,000,000.00
assets
(II) Receivables financing 137,800,000.00 137,800,000.00
Total liabilities
continuously measured at 3,410,000,000.00 137,800,000.00 3,547,800,000.00
fair value
II. Non-continuous fair
-- -- -- --
value measurement
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2. Basis for determining the market price of continuous and non-continuous level 1 fair value measurement
items
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for
continuous and non-continuous level 2 fair value measurement items
With respect to held-for-trading financial assets with similar products quotation in an active market, the fair value of them shall
be determined by the quotation of such similar products in the active market.
4. 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.
5. Reconciliation between opening and closing carrying amounts and sensitivity analysis of unobservable
parameters for continuous level 3 fair value measurement items
6. In case of transfers among levels for the current period, explain the transfer reasons and policies for
determining transfer time point for continuous fair value measurement items
7. Changes in valuation techniques for the current period and reasons for changes
8. Fair value of financial assets and liabilities not measured at fair value
9. Others
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 (%)
Planning, production
and operation of
radio and television
Mango Media Co., programs; asset
PRC 2,050,000,000.00 56.09% 56.09%
Ltd. management and
investment subject to
laws and regulations;
advertising planning,
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production and
operation;
Descriptions of the Company’s parent company
Mango Media Co., Ltd., which holds 56.09% of the shares in the Company, was established on July 10, 2007 with a registered
capital of RMB2,050,000,000 and registered address and principal place of business in Golden Eagle Studio Culture City in Kaifu
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 the descriptions in the accompanying Note IX.
3. Associates and joint ventures of the Company
For details of the significant joint ventures or associates of the Company, see the descriptions in the accompanying Note IX.
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 party Relationship between other related party and the Company
Hunan Radio and Television Advertising Corporation Controlled by the same actual controller
Hunan Broadcasting System Satellite TV Channel Controlled by the same actual controller
Subsidiaries of Hunan TV Business Operation Development Co.,
Ltd. [Note 1]
Yunhong Communication Technology (Guangzhou) Co., Ltd.
[Note 2] Controlled by the same actual controller
Hunan Broadcasting and Film Group Co., Ltd. Controlled by the same actual controller
Subsidiaries of Hunan Broadcasting System [Note 3] Controlled by the same actual controller
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Subsidiaries of Hunan TV & Broadcast Intermediary Co., Ltd.
[Note 4] Controlled by the same actual controller
Subsidiaries of Mango Media Co., Ltd. [Note 5] Controlled by the same actual controller
Xiao Xiang Film Group Co., Ltd. Controlled by the same actual controller
MIGU Culture Technology Co., Ltd. [Note 6] Company materially affected by the key officers
Other descriptions
[Note 1] Hunan TV Business Operation Development Co., Ltd. comprises Hunan EE Advertising Co., Ltd. and Hunan EE
Advertising Co., Ltd. Mango Idol Branch
[Note 2] Yunhong Communication Technology (Guangzhou) Co., Ltd. comprises Beijing Yunhong Wanhao Advertising Co.,
Ltd. and Shanghai Yunhong Advertising Co., Ltd..
[Note 3] 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 Co., Ltd., Hunan Happy Avant Garde Media Co., Ltd. and Letian
Entertainment (Hunan) Co., Ltd..
[Note 4] 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 5] Mango Media Co., Ltd. and its subsidiaries comprise] Mango Media Co., Ltd., Beijing Jinshiyatang Film & Television
Culture Communication Co., Ltd. and Hunan Mango Vision Technology Co., Ltd. and Hunan Happy Money Microfinance Co., Ltd.
and Golden Eagle Broadcasting System Co., Ltd.
[Note 6] 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, and rendering and receipt of services
Statement of purchase of goods/ receipt of services
In RMB
Whether exceeding
Details of related Amount for the Transaction quota Amount for the prior
Related parties the approved
party transactions current period approved period
transaction amount
Yunhong
Communication
Advertising
Technology 209,219,140.92 204,000,000.00 Yes 210,676,667.48
agency
(Guangzhou) Co.,
Ltd
Hunan Radio and Advertising,
40,592,476.33
Television publicity and
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Advertising promotion
Corporation
Value added share
Hunan Broadcasting of operators, brand
3,805,031.40 Yes 11,407,659.58
System license and
program usage fee
Publicity and
promotion, artist
agency, program
Subsidiaries of production, venue
Hunan Broadcasting exhibition and 67,038,290.39 55,340,000.00 Yes 33,420,832.91
System supporting
services, purchase
of goods, and
advertising agency
Publicity and
Hunan Broadcasting promotion, artist
System Satellite TV agency, accepting 1,724,905.65 2,060,000.00 No 36,848,537.20
Channel services and
copyrights
Shanghai Mama
Mia Mutual
Entertainment
Purchase of goods 1,360,895.71 1,000,000.00 Yes 949,171.49
Network
Technology Co.,
Ltd.
Bandwidth,
MIGU Culture copyright
Technology Co., purchase, 36,872,709.67 48,800,000.00 No 62,298,481.29
Ltd. advertising fee and
goods purchase
Purchase of
copyrights,
Hunan Broadcasting
operator sharing,
and Film Group 732,959,163.69 700,310,000.00 Yes 662,114,253.82
publicity and
Co., Ltd.
promotion, and
advertising agency
Subsidiaries of Operator sharing,
Hunan TV & board and lodging
Broadcast expenses, purchase 12,498,312.87 12,500,000.00 No 20,277,039.13
Intermediary Co., of goods and site
Ltd. expenses
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Mango Media Co.,
Artist agency and
Ltd. and 24,809,356.57 8,100,000.00 Yes 10,830,707.04
technical cost
subsidiaries
Hunan TV Business Advertising
Operation agency, internet
77,336,094.65 153,910,000.00 No 183,877,073.47
Development Co., access cooperation
Ltd. fees
Hunan Broadcasting Artist agency,
System Broadcast publicity and 1,704,764.54 Yes
Media Center promotion
Xiao Xiang Film Purchase of
1,769,911.50 Yes
Group Co., Ltd. copyrights
Statement 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 765,968,272.87 771,483,736.91
Ltd
Hunan Broadcasting and Film Advertising, release income,
1,684,145,199.13 801,900,648.11
Group Co., Ltd. publicity and promotion
Advertising, release income,
Hunan Broadcasting System 619,469.03 354,592.45
and sales of goods
Hunan Broadcasting System Release income and rendering
3,069,701.06 418,531,355.04
Satellite TV Channel of services
Advertising, artist income,
Subsidiaries of Hunan
derivatives business and sales 5,925,945.90 40,437,722.81
Broadcasting System
of goods
Mango Media Co., Ltd. and Artist income, sales of goods
156,799,987.36 446,518,867.72
subsidiaries and release income
Shanghai Mama Mia Mutual
Sales of goods and supplier
Entertainment Network 146,432.71 308,159.28
charge
Technology Co., Ltd.
Subsidiaries of Hunan TV &
Broadcast Intermediary Co., Operator income 2,514,681.44
Ltd.
Operator income, advertising,
MIGU Culture Technology Co.,
member benefits, and sales of 1,650,532,231.02 826,176,362.97
Ltd.
derivatives and goods
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Hunan Broadcasting System
Sales of goods 35,253.98
Broadcast Media Center
Hunan TV Business Operation Advertising and sales of
673,438,735.02 556,465,901.91
Development Co., Ltd. goods
Xiao Xiang Film Group Co.,
Copyright transfer 185,238.06
Ltd.
Descriptions of related party transactions with respect to the sales and purchase of goods, as well as rendering and receipt of services
(2) Related entrusted management/contracting and entrusting management/outsourcing
Statement of the entrusted management/contracting of the Company:
In RMB
Category of assets Basis for pricing of Trusteeship
Name of entrusting Name of entrusted being entrusted with Entrusted/contracting Entrusted/contracting trusteeship income/contracting
party/contractee party/contractor management or start date end date income/contracting income recognized in
contracting assets income the current period
Descriptions of related trusteeship/outsourcing
Statement of the entrusting management/outsourcing of the Company:
In RMB
Category of assets Trusteeship
Basis for pricing of
Name of entrusting Name of entrusted being entrusted Entrusting/outsourcing Entrusting/outsourcing fee/contracting fee
trusteeship
party/contractee party/contractor with management start date end date recognized in the
fee/outsourcing fee
or contracted assets current period
Descriptions of related management/outsourcing
(3) 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
Mango Media Co., Ltd. and Leasing and property
561,203.27 2,005,015.86
subsidiaries management
Subsidiaries of Hunan Leasing and property
4,052,832.85 5,229,537.88
Broadcasting System management
The Company as the lessee:
In RMB
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2021 Annual Report of Mango Excellent Media Co., Ltd.
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
34,890,852.22 23,335,476.32
Broadcasting System management
Subsidiaries of Hunan TV &
Leasing and property
Broadcast Intermediary Co., 13,683,059.96 13,260,280.74
management
Ltd.
Subsidiaries of Mango Media
Automobile rental 188,586.82
Co., Ltd.
Descriptions of leases with related parties
(4) Related guarantees
The Company as the guarantor:
In RMB
Whether the guarantee
Maturity date of
Guaranteed Guarantee amount Start date of guarantee obligation has been
guarantee
discharged
The Company as the guaranteed:
In RMB
Whether the guarantee
Maturity date of
Guarantor Guarantee amount Start date of guarantee obligation has been
guarantee
discharged
Descriptions of guarantees with related parties
(5) Lending funds of related parties
In RMB
Related parties Amount Start date Maturity date Note
Borrowing
Lending
(6) Asset transfer and debt restructuring between related parties
In RMB
Details of related party Amount for the current
Related party Amount for the prior period
transactions period
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2021 Annual Report of Mango Excellent Media Co., Ltd.
(7) Compensation for key management
In RMB
Item Amount for the current period Amount for the prior period
Compensation for key management
28,980,000.00 37,175,900.00
personnel
(8) Other related party transactions
The 100% equity of Hunan Happy Money Microfinance Co., Ltd held by the Company was transferred to Mango Media Co.,
Ltd. in consideration of RMB304,249,700, the industrial and commercial change registration procedures for which were completed
on June 16, 2021.
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
Hunan Broadcasting
Receivable financing System Satellite TV 57,000,000.00
Channel
MIGU Culture
Receivable financing 107,410,000.00
Technology Co., Ltd.
Hunan TV Business
Operation
Receivable financing 12,000,000.00
Development Co.,
Ltd.
Hunan Broadcasting
Receivable financing and Film Group Co., 43,200,000.00
Ltd.
Sub-total 55,200,000.00 164,410,000.00
Hunan Broadcasting
Notes receivable and Film Group Co., 12,000,000.00
Ltd.
MIGU Culture
Notes receivable 661,742,339.23
Technology Co., Ltd.
Sub-total 673,742,339.23
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Hunan Broadcasting
Accounts receivable 244,000.00
System
Hunan Broadcasting
Accounts receivable System Satellite TV 214,923,447.92
Channel
Hunan Broadcasting
Accounts receivable and Film Group Co., 1,039,093,242.60 164,336,587.00
Ltd.
Mango Media Co.,
Accounts receivable 348,640.12 122,610,000.00
Ltd. and subsidiaries
Tianjin Sunshine
Accounts receivable Meichuang 766,557.10 766,557.10 766,557.10 766,557.10
Technology Co., Ltd.
Yunhong
Communication
Accounts receivable Technology 33,794,156.81 72,753,709.93
(Guangzhou) Co.,
Ltd
MIGU Culture
Accounts receivable 283,182,835.10 14,159,141.76 61,576,467.21 3,078,823.36
Technology Co., Ltd.
Subsidiaries of
Hunan TV &
Accounts receivable Broadcast 4,503.00 2,876,840.38
Intermediary Co.,
Ltd.
Subsidiaries of
Accounts receivable Hunan Broadcasting 7,618,619.30 3,490,039.09
System
Hunan TV Business
Operation
Accounts receivable Development Co., 347,838,043.25 290,175,195.53
Ltd. and its
subsidiaries
Shanghai Mama Mia
Mutual
Accounts receivable Entertainment 8,310.60 415.53
Network Technology
Co., Ltd.
Xiao Xiang Film
Accounts receivable 186,352.35
Group Co., Ltd.
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Sub-total 1,712,841,260.23 14,926,114.39 933,752,844.16 3,845,380.46
Subsidiaries of
Hunan TV &
Contract asset Broadcast 2,449,700.00
Intermediary Co.,
Ltd.
MIGU Culture
Contract asset 520,037,950.51 26,001,897.53 462,914,088.43 23,145,704.42
Technology Co., Ltd.
Sub-total 520,037,950.51 26,001,897.53 465,363,788.43 23,145,704.42
Subsidiaries of
Hunan TV &
Prepayments Broadcast 160,628.95 64,443.96
Intermediary Co.,
Ltd.
Subsidiaries of
Prepayments Hunan Broadcasting 2,515,982.48 397,107.70
System
Tianjin Sunshine
Prepayments Meichuang 6,014,723.96 6,014,723.96 6,014,723.96 6,014,723.96
Technology Co., Ltd.
Hunan Broadcasting
Prepayments and Film Group Co., 2,264.15
Ltd.
Shanghai Mama Mia
Mutual
Prepayments Entertainment 13,399.99
Network Technology
Co., Ltd.
Mango Media Co.,
Prepayments 23,893.82 304,789.54
Ltd. and subsidiaries
Sub-total 8,730,893.35 6,014,723.96 6,781,065.16 6,014,723.96
Subsidiaries of
Other receivables Hunan Broadcasting 1,761,126.00 1,000,105.00
System
Subsidiaries of
Hunan TV &
Other receivables Broadcast 1,412,441.00 1,119,357.00
Intermediary Co.,
Ltd.
Other receivables Shanghai Mama Mia 2,629,764.69 2,629,764.69 2,629,764.69 1,564,882.35
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Mutual
Entertainment
Network Technology
Co., Ltd.
Hunan Broadcasting
Other receivables and Film Group Co., 100,000.00 300,000.00
Ltd.
Subsidiaries of
Other receivables Mango Media Co., 921,193.47
Ltd.
Hunan Broadcasting
Other receivables 30,000.00
System
Xiao Xiang Film
Other receivables 50,822.65
Group Co., Ltd.
Sub-total 6,905,347.81 2,629,764.69 5,049,226.69 1,564,882.35
Subsidiaries of
Hunan TV &
Other current assets Broadcast 1,531,056.96
Intermediary Co.,
Ltd.
Hunan TV Business
Operation
Other current assets 707,547.16
Development Co.,
Ltd.
Sub-total 707,547.16 1,531,056.96
(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., 237,264,113.11 199,545,392.54
Ltd
Accounts payable Hunan Broadcasting System 20,290,566.05 20,281,809.33
Hunan Broadcasting System
Accounts payable 3,380,943.40
Satellite TV Channel
Hunan Radio and Television
Accounts payable 11,320,754.73
Advertising Corporation
Accounts payable Hunan Broadcasting and Film 97,676,655.77 37,086,109.61
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Group Co., Ltd.
Shanghai Mama Mia Mutual
Accounts payable Entertainment Network 61,546.13 134,309.23
Technology Co., Ltd.
Tianjin Sunshine Meichuang
Accounts payable 24,449.42 25,350.00
Technology Co., Ltd.
MIGU Culture Technology Co.,
Accounts payable 13,758,167.93 35,517,829.89
Ltd.
Subsidiaries of Hunan TV &
Accounts payable Broadcast Intermediary Co., 76,946.59 17,725,248.79
Ltd.
Subsidiaries of Hunan
Accounts payable 9,404,343.82 1,845,211.14
Broadcasting System
Subsidiaries of Mango Media
Accounts payable 1,055,662.29 132,075.48
Co., Ltd.
Hunan TV Business Operation
Accounts payable 169,921,580.33 176,823,442.87
Development Co., Ltd.
Sub-total 549,534,031.44 503,818,477.01
Yunhong Communication
Contract liabilities Technology (Guangzhou) Co., 855,240.83
Ltd
Contract liabilities Hunan Broadcasting System 1,886,792.45 1,886,792.45
Hunan Broadcasting System
Contract liabilities 117,594,339.62
Satellite TV Channel
MIGU Culture Technology Co.,
Contract liabilities 2,907,212.61 22,022.40
Ltd.
Subsidiaries of Hunan
Contract liabilities 349,943.95
Broadcasting System
Subsidiaries of Hunan TV &
Contract liabilities Broadcast Intermediary Co., 1,573,712.60 1,573,712.60
Ltd.
Hunan TV Business Operation
Contract liabilities 358,490.58
Development Co., Ltd.
Subsidiaries of Mango Media
Contract liabilities 31,720.00 1,725,283.01
Co., Ltd.
Sub-total 6,757,928.24 124,007,334.86
Hunan TV Business Operation
Other payables 250,000.00
Development Co., Ltd.
Other payables Subsidiaries of Hunan TV & 903,112.55 1,596,991.85
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Broadcast Intermediary Co.,
Ltd.
Other payables Hunan Broadcasting System 172,249.06
Mango Media Co., Ltd. and its
Other payables 3,798,949.15 3,784,547.60
subsidiaries
Subsidiaries of Hunan
Other payables 5,168,933.76 5,788,122.23
Broadcasting System
Sub-total 10,043,244.52 11,419,661.68
Subsidiaries of Hunan TV &
Other current liabilities Broadcast Intermediary Co., 5,595,825.03
Ltd.
Subsidiaries of Hunan
Other current liabilities 12,506,214.32
Broadcasting System
MIGU Culture Technology Co.,
Other current liabilities 210,754,333.88
Ltd.
Sub-total 228,856,373.23
Subsidiaries of Hunan TV &
Non-current liabilities due
Broadcast Intermediary Co., 8,952,558.55
within one year
Ltd.
Non-current liabilities due Subsidiaries of Hunan
11,062,016.76
within one year Broadcasting System
Sub-total 20,014,575.31
Subsidiaries of Hunan TV &
Lease liabilities Broadcast Intermediary Co., 11,051,946.09
Ltd.
Subsidiaries of Hunan
Lease liabilities 60,992,717.01
Broadcasting System
Sub-total 72,044,663.10
7. Commitments of related parties
8. Others
XIII. Share-Based Payment
1. Overview of shared-based payment
□ Applicable √ N/A
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2. Equity-settled share-based payment
□ Applicable √ N/A
3. Cash-settled share-based payment
□ Applicable √ N/A
4. Modification to and termination of share-based payment
5. Others
XIV. Commitments and Contingencies
1. Significant commitment
Significant commitments as of the balance sheet date
1. Commitment to payments for internet access cooperation
In RMB0’000
Payments for internet access cooperation Closing balance Opening balance
The 1st year subsequent to the balance sheet date 2,329.72 3,198.95
The 2nd year subsequent to the balance sheet date 4.86
The 3rd year subsequent to the balance sheet date
Total 2,329.72 3,203.81
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 Happigo and each local TV station with cooperation.
2. Copyright purchase commitment
In RMB0’000
Copyright purchase agreements Closing balance Opening balance
The 1st year subsequent to the balance sheet date 54,571.00 54,571.00
The 2nd year subsequent to the balance sheet date 54,571.00 54,571.00
The 3rd year subsequent to the balance sheet date 54,571.00 54,571.00
Subsequent periods 54,571.00 109,142.00
Total 218,284.00 272,855.00
Copyright purchase agreements are concluded by and between Happy Sunshine and Hunan Broadcasting and Film Group Co.,
Ltd. for considerations that should be paid by the Company to purchase copyrights in each relevant agreement period.
2. Contingencies
(1) Significant contingencies as of the balance sheet date
1. 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 relevant payments together with liquidated
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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.
As present, the second instance has been heard by Hunan Provincial Higher People’s Court who then has made a ruling
ordering the case to be remanded to Changsha Municipal Intermediate People’s Court for retrial. In this connection, Happy Sunshine
has lodged a separate action against Guolong for contract termination, for which Changsha Municipal Intermediate People’s Court
has rendered an effective first-instance judgment confirming the license contract on “Paris Unhappy” between Happy Sunshine and
Guolong is terminated, and determining the payment made by Happy Sunshine does not need to be returned to Guolong film, and
Guolong shall pay a sum of RMB2.98 million as liquidated damages to Happy Sunshine, finding, however, that whether the
remaining amount of the contract shall be paid shall be an issue to be addressed via a separate case. As such, whether there is still any
payment obligation on the part of Happy Sunshine shall be subject to the retrial.
2. Protium Deuterium Tritium (Guangzhou) Industrial Operation Management Co., Ltd. (“Protium Deuterium Tritium”) sued
Happy Sunshine in the People’s Court of Haizhu District, Guangzhou City, Guangdong Province on November 30, 2020, requesting
the court to order Happy Sunshine to pay the outstanding production fees of RMB14.36 million and bear the liquidated damages of
RMB3.19 million.
With respect to the case, the People’s Court of Haizhu District made the first-instance judgement ordering Happy Sunshine to
pay the production fees of RMB13.16 million, while rejecting other litigation requests of Protium Deuterium Tritium. At present, the
case has entered the appeal proceedings in Guangzhou Municipal Intermediate People’s Court pending the second-instance
judgement. In addition, Happy Sunshine filed a lawsuit against Protium Deuterium Tritium for advertising fees owed to the former
with Changsha Municipal Intermediate People’s Court who rendered the first-instance judgement which has been in force obliging
Protium Deuterium Tritium to pay the advertising fees of RMB13.28295 million to Happy Sunshine, but such judgment has not yet
been enforced by Protium Deuterium Tritium for the time being.
3. Shandong Yuquan Tianyuan Agricultural Comprehensive Development Co., Ltd. (“Shandong Yuquan”) filed a lawsuit
against Shanghai Mangofun Technology Co., Ltd. (“Mangofun”) with the People’s Court of Lanshan District, Linyi City, Shandong
Province on July 6, 2021, requesting the court to order: a cancellation of the cooperation agreement on “Happy Mango” experience
park dated January 1, 2019 between both parties; a compensation from Mangofun to Shandong Yuquan for the economic losses in
the amount of RMB6.8098 million. Meanwhile, Shandong Yuquan has applied to such court for property preservation, resulting in a
freezing of RMB1.6 million in the account under the name of Mangofun at China Merchants Bank.
At present, the case is pending before the People’s Court of Lanshan District. Even if the contract is determined to be canceled,
the Company will seek to reduce its compensation liability given it is Shandong Yuquan who breached the contract first, subject to
the judgment of the court.
4. On December 4, 2017, Leshi Internet Information & Technology Corp., Beijing (hereinafter “Leshi Internet”) and Happy
Sunshine concluded an Agreement on Exclusively Licensed Use of Information Network Dissemination Rights (hereinafter “Original
License Agreement”); pursuant to which, Leshi Internet assigns the exclusive information network dissemination rights of teleplay
Tears In Heaven to Happy Sunshine, and Happy Sunshine has paid the down payment of RMB 31.20 million.
On March 20, 2021, Leshi Internet, Leshi Xinshengdai (Beijing) Culture Media Co., Ltd. (hereinafter “Xinshengdai”) and
Happy Sunshine concluded an agreement, pursuant to which, Leshi Internet transfers its rights and obligations under Original
License Agreement to Xinshengdai; the total license fee of teleplay Tears In Heaven is RMB 63.75 million, and Happy Sunshine
shall pay remaining license fee of RMB 32.55 million. Xinshengdai lodged a lawsuit to People’s Court of Chaoyang District, Beijing
for aforesaid unpaid license fee of RMB 32.55 million in December 2021, and the bank deposit RMB 34,177,500 of Happy Sunshine
was frozen. Through negotiation, Happy Sunshine and Xinshengdai concluded a new agreement, Happy Sunshine has paid the
license fee of RMB 32.55 million on January 4, 2022, and Xinshengdai has dropped the lawsuit and unfrozen the bank deposit of
Happy Sunshine.
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(2) Please make corresponding clarification if the Company has no significant contingency to be disclosed
The Company has no significant contingencies to be disclosed.
3. Others
XV. Events Subsequent to the Balance Sheet Date
1. Significant non-adjustment events
In RMB
Effects on financial position Reasons for inability to estimate
Item Content
and operating results the effects
2. Profit distribution
In RMB
Profits or dividends to be distributed 243,193,705.95
Profits or dividends declared for distribution after being approved 243,193,705.95
3. Sales returns
4. Descriptions of other events subsequent to the balance sheet date
XVI. Other Significant Events
1. Corrections of previous accounting errors
(1) Retrospective restatement
In RMB
Content of accounting error Report items in each
Accounting procedure Cumulative effects
correction comparison period affected
(2) Prospective application
Reasons for adopting prospective
Content of accounting error correction Approval procedure
application
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2. Debt restructuring
3. Replacement of assets
(1) Exchange of non-monetary assets
(2) Replacement of other assets
4. Annuity plan
5. Discontinued operations
In RMB
Profit from discontinued
Income tax operation attributable to
Item Income Cost Total profit Net profit
expense owners of the parent
company
Hunan Happy Money
Microfinance Co., 28,355,903.05 14,939,256.18 560,366.45 0.00 560,366.45 1,331,063.62
Ltd.
Other descriptions
6. Segment information
(1) Determination basis and accounting policies of reporting segments
The Company has established four reporting segments being Mango TV Internet video business, new media interactive
entertainment content production, content e-business and others, which are divided based on its internal organizational structure,
management requirements, and inner reporting system, among others, in light of the industry and product actuality. The reporting
information on each segment is disclosed according to the accounting policies and measurement standards adopted thereby when
reporting to the management, the measurement bases of which are in line with the accounting and measurement bases for the
preparation of the financial statements.
(2) Financial information of reporting segments
In RMB
New media
interactive
Mango TV Internet
entertainment Content Inter-segment
Item Video Business Others Total
content E-business offset
production and
operation
Income from 11,261,249,957.21 1,877,457,854.82 2,157,213,530.01 39,485,705.99 15,335,407,048.03
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principal operating
activities
Cost of principal
6,350,577,826.34 1,556,685,395.67 1,968,834,667.67 20,199,308.10 9,896,297,197.78
operating activities
(3) If the Company has no reporting segment or is unable to disclose total assets and liabilities of each
reporting segment, please give the reason therefor
Happy Sunshine, a subsidiary of the Company, engages in business involving three segments i.e. Mango TV Internet video,
new media interactive entertainment content production and operation, and content e-commerce, the total assets and liabilities of
each reporting segment of whom cannot be disclosed as its assets and liabilities cannot be divided according to the reporting
segments.
(4) Other descriptions
7. Other significant transactions and events affecting the investors’ decisions
8. Others
Leases
1. The Company as the lessee
(1) For the relevant information of use right assets, see Note VII (I)14 to the financial statements hereof;
(2) Current profit or loss and cash flow related to leasing
Item Amount in the current period (in RMB)
Interest expense on lease liabilities 5,819,271.54
Variable lease payments through profit or loss not included in the measurement of
lease liabilities
Income from subletting right to use assets 9,341,266.04
Total cash outflow related to leasing 64,826,084.84
Relevant profit or loss arising from sale-leaseback transactions
(4) For the maturity analysis of lease liabilities and the corresponding liquidity risk management, see Note X(II) to the financial
statements hereof.
2. The Company as the lessor
Operating lease
1. Lease income
Item Amount in the current period (in RMB)
Lease income 19,143,126.43
(2) Operating lease assets
Item Closing balance (in RMB)
Fixed assets 34,070,036.19
Use right assets 6,884,092.38
Sub-total 40,954,128.57
For details of fixed assets leased out for operation, see Note VII(I)13 to the financial statements hereof.
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(3) Future undiscounted lease receipts under irrevocable leases according to the leases with the lessees
Remaining term Closing balance (in RMB)
Within 1 year 15,399,807.10
1-2 years 13,592,258.70
2-3 years 12,598,737.80
3-4 years 10,176,167.90
4-5 years 8,561,441.20
Over 5 years 11,423,322.10
Total 71,751,734.80
XVII. Notes to Main Items in the Financial Statements of the Parent Company
1. Other receivables
In RMB
Item Closing balance Opening balance
Dividends receivable 250,000,000.00
Other receivables 80,099,116.90 260,068,347.20
Total 330,099,116.90 260,068,347.20
(1) Interest receivable
1) Classification of interest receivable
In RMB
Item Closing balance Opening balance
2) Significant overdue interest
Whether there is any
Borrower Closing balance Overdue time Overdue reasons impairment and the basis
for judgment
Other descriptions:
3) Provision for bad debts
□ Applicable √ N/A
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(2) Dividends receivable
1) Classification of dividends receivable
In RMB
Project (or investee) Closing balance Opening balance
Shanghai EE-Media Co., Ltd. 250,000,000.00
Total 250,000,000.00
2) Significant dividends receivable aged more than 1 year
In RMB
Whether there is any
Reasons for
Project (or investee) Closing balance Aging impairment and the basis
non-recovery
for judgment
3) Provision for bad debts
□ Applicable √ N/A
Other descriptions:
(3) Other receivables
1) Classification 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 100,118.08 69,759.37
Amount due to or from related parties
80,000,000.00 260,000,000.00
within the scope of consolidation
Total 80,100,118.08 260,069,759.37
2) Provision 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,
518.95 893.22 1,412.17
2021
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In the current period,
balance as at January 1, —— —— —— ——
2021
Provision for the current
482.23 -893.22 -410.99
period
Balance as at December
1,001.18 1,001.18
31, 2021
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 (inclusive) 100,118.08
2 to 3 years 80,000,000.00
Total 80,100,118.08
3) Provision, recovery or reversal of bad debts for the current period
Provision for bad debts made for the current period:
In RMB
Changes for the current period
Opening
Category Recovery or Closing balance
balance Provision Write-off Others
reversal
Group by age 1,412.17 -410.99 1,001.18
Total 1,412.17 -410.99 1,001.18
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) Other receivables actually written off for the period
In RMB
Item Write-off amount
Descriptions of significant other receivables that are written off:
In RMB
Whether the
Nature of other Reasons for Write-off procedures
Entity Write-off amount payments were
receivables write-off performed
generated from
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related party
transactions
Descriptions of write-off of other receivables:
5) Top five closing balances of other receivables categorized by debtor
In RMB
Proportion in total Closing balance of
Entity Nature Closing balance Aging closing balance of provisions for bad
other receivables debts
Hunan Mango
Amount due to or
Entertainment Co., 80,000,000.00 2-3 years 99.88%
from subsidiaries
Ltd.
Total -- 80,000,000.00 -- 99.88%
6) Receivables involving government grants
In RMB
Projects supported by Expected receipt time,
Entity Closing balance Ending aging
government grants amount and basis
7) Other receivables derecognized due to the transfer of financial assets
8) Assets and liabilities generated by the transfer of other receivables and continuing involvement therein
Other descriptions:
2. Long-term equity investments
In RMB
Closing balance Opening balance
Item Gross carrying Provision for Gross carrying Provision for
Carrying amount Carrying amount
amount impairment amount impairment
Investments in 11,976,375,839.5 11,976,375,839.5
7,780,583,738.35 7,780,583,738.35
subsidiaries 5 5
11,976,375,839.5 11,976,375,839.5
Total 7,780,583,738.35 7,780,583,738.35
5 5
(1) Investments in subsidiaries
In RMB
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Opening Changes in the current 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 300,000,000.0 300,000,000.0
Microfinance 0 0
Co., Ltd.
Hunan Happy
Sunshine
5,658,165,333. 5,186,884,274. 10,845,049,607
Interactive
48 14 .62
Entertainment
Media Co., Ltd.
Hunan Mango
145,185,235.6 145,185,235.6
Entertainment
2 2
Co., Ltd.
Mango Studios 211,030,100.5 211,030,100.5
Co., Ltd. 7 7
Shanghai
Mangofun 334,876,836.7 334,876,836.7
Technology Co., 5 5
Ltd.
Shanghai
535,281,326.7
EE-Media Co., 535,281,326.72
2
Ltd.
Happigo Co., 596,044,905.2
596,044,905.21
Ltd. 1
7,780,583,738. 5,186,884,274. 991,092,172.9 11,976,375,839
Total
35 14 4 .55
(2) Investments in associates and joint ventures
In RMB
Changes in the current 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
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II. Associates
(3) Other descriptions
3. Investment income
In RMB
Item Amount for the current period Amount for the prior period
Income from long-term equity investments
250,560,366.45
accounted for using the cost method
Income from long-term equity investments
-518,632.62
accounted for using the equity method
Income from disposal of long-term equity
4,249,700.00 70,383,379.80
investments
Total 254,810,066.45 69,864,747.18
4. Others
XVIII. Supplementary Information
1. Statement of non-recurring profit or loss for the current period
√ Applicable □ N/A
In RMB
Item Amount Note
Gains or losses from disposal of non-current
501,358.91
assets
Government grants recognized in profit or
loss for the current period (excluding
government grants that are closely related to
35,999,768.69
the company’s business operations and
gained at a fixed amount or quantity
according to national uniform standards)
Gains or losses from entrusting others with
34,265,617.23
investment or asset management
Reversal of impairment provision of
accounts receivable that have undergone 4,843,660.00
impairment test alone
Other non-operating incomes and expenses
-21,265,876.15
besides the above items
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2021 Annual Report of Mango Excellent Media Co., Ltd.
Effect of minority equity 12,508.07
Total 54,332,020.61 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ N/A
The Company has no other items of profit and loss that meet the definition of non-recurring profit and loss.
Explanations for classifying non-recurring profit and loss items enumerated in the Explanatory Announcement No. 1 for Public
Company Information Disclosures – Non-recurring Profits and Losses as recurring profit and loss items:
□ Applicable √ N/A
2. Return on equity and earnings per share
Earnings per share
Profit for the reporting period Weighted average return on equity (%)
Basic EPS (RMB) Diluted EPS (RMB)
Net loss attributable to the
16.25% 1.17 1.17
Company’s ordinary shareholders
Net profit attributable to the parent
company’s shareholders after
15.83% 1.14 1.14
deduction of non-recurring profit or
loss
3. Accounting data differences arising from accounting standard of the PRC and the International
Accounting Standards
(1) Differences in net profits and net assets in the financial reports disclosed concurrently under
international accounting standards and Chinese accounting standards
□ Applicable √ N/A
(2) Differences in net profits and net assets in the financial reports disclosed concurrently under overseas
accounting standards and Chinese accounting standards
□ Applicable √ N/A
(3) Description of the reasons for the differences in accounting data under domestic and foreign accounting
standards, and in case of the differences being adjusted for the data audited by an overseas audit institution,
indication of the name of the overseas institution
4. Others
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