Mango Excellent Media Co., Ltd. Annual Report 2022
Mango Excellent Media Co., Ltd.
Annual Report 2022
April 2023
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Mango Excellent Media Co., Ltd. Annual Report 2022
Annual Report 2022
Section I Important Note, Table of Contents and Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and executives
of the Company hereby warrant that the information contained in this Annual Report is true,
accurate and complete and this Annual Report is free from any misrepresentation, misleading
statement or material omission, and agree to assume joint and several liability for this Annual
Report.
CAI Huaijun, Principal of the Company, ZHANG Zhihong, CFO and TAO Jinyu, Chief
Accountant hereby represent that the financial statements contained in this Annual Report
are true, accurate and complete.
All directors of the Company attended the meeting of the Board of Directors reviewing
this Report.
This Report contains certain forward-looking statements regarding future plans,
development strategies and other projected matters, which do not constitute any substantial
covenant made by the Company to the investors and related persons. The investors and
related persons shall be fully aware of the relevant risks, and understand the differences
among such plans, forecasts and covenants.
The Company has stated in details the possible risks in its operation and
countermeasures in this Report. Investors are advised to refer to the Section III
“Management’s Discussion and Analysis - Prospects for future development of the Company”.
According to the profit distribution proposal approved by the Board of Directors, on the
basis of 1,870,720,815, a cash dividend of RMB 1.3 (tax inclusive) will be distributed for every
10 shares held by shareholders, with 0 bonus share (tax inclusive) and no capital reserves
converted into the share capital.
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Mango Excellent Media Co., Ltd. Annual Report 2022
Table of Contents
Section I Important Note, Table of Contents and Definitions ........................................................ 2
Section II Company Profile and Key Financial Indicators ............................................................ 7
Section III Management’s Discussion and Analysis ...................................................................... 11
Section IV Corporate Governance ................................................................................................. 40
Section V Environmental and Social Responsibility ..................................................................... 70
Section VI Important Events .......................................................................................................... 73
Section VII Share Changes and Information of Shareholders .................................................... 91
Section VIII Preference Shares ..................................................................................................... 101
Section IX Bonds ............................................................................................................................ 102
Section X Financial Report ........................................................................................................... 103
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Mango Excellent Media Co., Ltd. Annual Report 2022
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 2022
Definitions
Terms Definition
Mango Excellent Media, Company,
means Mango Excellent Media Co., Ltd.
we/our or the Listed Company
The full name of the Company in
Mango Excellent Media Co., Ltd. means
English.
The short name of the Company in
MANGO means
English.
Hunan Happy Sunshine Interactive
Entertainment Media Co., Ltd., a wholly-
Happy Sunshine means
owned subsidiary of the Listed
Company.
Mango Studios Culture Co., Ltd., a
Mango Studios means wholly-owned subsidiary of Happy
Sunshine.
Hunan Mango Entertainment Co., Ltd., a
Mango Entertainment means wholly-owned subsidiary of Happy
Sunshine.
Shanghai EE-Media Co., Ltd., a wholly-
EE-Media means owned subsidiary of the Listed
Company.
Happigo Co., Ltd., a wholly-owned
Happigo means
subsidiary of the Listed Company.
Shanghai Mangofun Technology Co.,
Mangofun means Ltd., a wholly-owned subsidiary of
Happy Sunshine.
The online video platform affiliated to
Mango TV means the Listed Company and operated by
Happy Sunshine.
Xiaomang E-commerce Co., Ltd., a
Xiaomang E-commerce means
subsidiary of Happy Sunshine
Mango Media Co., Ltd. the controlling
Mango Media means
shareholder of the Company.
Golden Eagle Broadcasting System Co.,
Ltd., the parent company of Mango
GBS means
Media Co., Ltd. as the controlling
shareholder of the Company.
Hunan State-owned Cultural Assets
Supervision and Administration
Hunan Cultural Assets Commission means
Commission, the actual controller of the
Company.
GBS is an all-in-one company of Hunan
Broadcasting System, and Hunan
Broadcasting System and Golden Eagle
Broadcasting System Co., Ltd. are
Hunan Broadcasting System means operated under the management model of
“two institutions operating integratedly
under the leadership of one CPC
committee” of Hunan Broadcasting
System and GBS.
Hunan Broadcasting Network Holding
HBNHG means
Group Co., Ltd., a subsidiary of GBS.
Xiaoxiang Film Group Co., Ltd., a
Xiaoxiang Film Group means
subsidiary of GBS.
HTBI means Hunan TV & Broadcast Intermediary
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Mango Excellent Media Co., Ltd. Annual Report 2022
Co., Ltd.
China Mobile Communications Group
China Mobile means
Co., Ltd.
Internet Protocol Television, a
technology integrated with internet,
multimedia, communication and other
IPTV means technologies that provides home users
with digital television and other
interactive services through broadband
network.
Over The Top, which provides a variety
OTT means of video and data services to users via
the Internet.
Intellectual Property, the property rights
IP means given to persons over 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.
QuestMobile, a mobile web big data
QM means
company.
KOL means Key Opinion Leader.
PUGC means Professional User-generated Content
AIGC means AI Generated Content.
Chat Generative Pre-trained Transformer,
a large language model based on the
ChatGPT means
GPT-4 architecture developed by
OpenAI
A data platform which carries out
statistics and analysis of the program
ENLIGHTENT means
broadcast data of long video platforms
and channels
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Mango Excellent Media Co., Ltd. Annual Report 2022
Section II Company Profile and Key Financial Indicators
I. Company profile
Stock short name Mango Stock code 300413
Chinese name 芒果超媒股份有限公司
Chinese short name 芒果超媒
English name (if any) Mango Excellent Media Co., Ltd.
English short name (if any) Mango
Legal representative CAI Huaijun
Registered address Golden Eagle TV Culture City, Changsha, Hunan
Postal code of registered
410003
address
History of changes in
None
registered address
Office address Golden Eagle TV Culture City, Changsha, Hunan
Postal code of office address 410003
Company website https://www.mgtv.com
Email mangocm@mangocm.com
II. Contact person and contact information
Board Secretary Securities Affairs Representative
Name WU Jun ZHOU Yong
Golden Eagle TV Culture City, Golden Eagle TV Culture City,
Address
Changsha, Hunan Changsha, Hunan
Telephone (0731) 82967188 (0731) 82967188
Facsimile (0731) 82897962 (0731) 82897962
Email mangocm@mangocm.com mangocm@mangocm.com
III. Information disclosure and place for keeping annual report
Website of the stock exchange disclosing the Company’s
http://www.szse.cn
annual report
The China Securities Journal, the Securities Times, the
Media and website disclosing the Company’s annual report Securities Daily, the Shanghai Securities News and
http://www.cninfo.com.cn
Place for keeping the Company’s annual report Board of Directors Office of the Company
IV. Other related information
Accounting firm engaged by the Company:
Name of accounting firm Pan-China Certified Public Accountants LLP
Office address of accounting firm 6/F, No. 128, Xixi Road, Xihu District, Hangzhou City,
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Mango Excellent Media Co., Ltd. Annual Report 2022
Zhejiang Province
Name of accountants signing this Report ZHENG Shengjun and HU Jian
Sponsor institution engaged by the Company that performs the duties of ongoing supervision over the Company during the Reporting
Period:
Applicable N/A
Office address of sponsor Period of continuous
Name of sponsor institution Sponsor’s representative
institution supervision
27 & 28/F, Block 2, China
China International Capital World Towers, No. 1 YAO Xudong and WANG From August 24, 2021 to
Corporation Limited Jianguomenwai Street, Kun December 31, 2023
Chaoyang District, Beijing
Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the Reporting
Period:
Applicable N/A
V. Key accounting data and financial indicators
Did the Company need to retrospectively adjust or re-state accounting data of prior accounting years?
□Yes No
Increase/decrease
2022 2021 2020
YoY
Operating revenue (RMB) 13,704,339,712.31 15,355,863,482.07 -10.76% 14,005,534,955.36
Net profit attributable to shareholders of
1,824,925,935.93 2,114,090,171.85 -13.68% 1,982,159,476.82
the Listed Company (RMB)
Net profit attributable to shareholders of
the Listed Company less non-recurring 1,587,332,987.64 2,059,758,151.24 -22.94% 1,846,203,181.73
profit or loss (RMB)
Net cash flow from operating activities
551,646,897.99 561,800,882.37 -1.81% 580,970,353.08
(RMB)
Basic earnings per share (RMB/share) 0.98 1.17 -16.24% 1.11
Diluted earnings per share (RMB/share) 0.98 1.17 -16.24% 1.11
Weighted average return on equity 10.20% 16.25% -6.05% 20.46%
Year-end
End of 2022 End of 2021 increase/decrease End of 2020
YoY
Total assets (RMB) 29,049,673,556.55 26,110,751,404.90 11.26% 19,265,699,802.98
Net assets attributable to shareholders of
18,850,714,836.78 16,966,400,358.23 11.11% 10,587,978,185.42
the Listed Company (RMB)
Whether the lower of the net profit before and after deduction of non-recurring profit or loss in the past three accounting years has
been negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concern is
uncertain?
□Yes No
Whether the lower of the net profit before and after deduction of non-recurring profit or loss is negative?
□Yes No
VI. Key financial indicators by quarter
In RMB
First quarter Second quarter Third quarter Fourth quarter
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Mango Excellent Media Co., Ltd. Annual Report 2022
Operating revenue 3,123,969,453.34 3,590,517,648.95 3,524,344,638.12 3,465,507,971.90
Net profit attributable
to shareholders of the 507,478,079.59 683,286,374.23 487,528,304.18 146,633,177.93
Listed Company
Net profit attributable
to shareholders of the
Listed Company less 474,325,192.41 621,084,933.79 441,615,284.70 50,307,576.74
non-recurring profit or
loss
Net cash flow from
-733,432,499.72 648,062,871.71 542,673,374.45 94,343,151.55
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
VII. Differences in accounting data arising from adoption of foreign and Chinese accounting
standards concurrently
1. Differences between net profit and net assets disclosed on the financial statements according to the
international accounting standards and the Chinese accounting standards concurrently
Applicable N/A
During the Reporting Period, there was no difference in net profits and net assets in the financial report disclosed in accordance with
the international accounting standards and the Chinese accounting standards.
2. Differences between net profit and net assets disclosed on the financial statements according to the
foreign accounting standards and the Chinese accounting standards concurrently
□Applicable N/A
During the Reporting Period, there was no difference in net profits and net assets in the financial report disclosed in accordance with
the foreign accounting standards and the Chinese accounting standards.
VIII. Items and amounts of non-recurring profit or loss
Applicable □N/A
In RMB
Item Amount in 2022 Amount in 2021 Amount in 2020 Note
Income from
Gain or loss on disposal of non-current
scrapping of fixed
assets (including the written-off part of the 807,213.90 501,358.91 70,055,759.62
assets and
asset impairment reserve accrued)
disposal of assets
Government subsidies accrued to the
current profit and loss (excluding
government subsidies that are closely
related to the business of the Company and 46,148,191.22 35,999,768.69 49,700,923.82
are provided in fixed amount or quantity
continuously according to the applicable
polices and standards of the country)
Profit and loss from investment or asset
119,290,763.72 34,265,617.23 3,906,349.28
management by commissioned parties
Profit and loss from debt restructuring 27,219,600.00
Reversal of provision for impairment of
receivables subject to individual 3,355,000.00 4,843,660.00 31,747,600.00
impairment test
Other non-operating revenue and
41,319,889.16 -21,265,876.15 -18,913,395.60
expenditure other than those listed above
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Mango Excellent Media Co., Ltd. Annual Report 2022
Less: Amount of income tax affected 1,209.77
Amount of minority shareholders’
547,709.71 12,508.07 539,732.26
equity affected (after tax)
Total 237,592,948.29 54,332,020.61 135,956,295.09 --
Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss:
□Applicable N/A
The Company does not have any other profit or loss items that can be defined as non-recurring profit or loss.
Statement on defining non-recurring profit or loss items listed in the “Explanatory Announcement No. 1 on Information Disclosure of
Publicly Listed Companies - Non-recurring Profit or Loss” as recurring profit or loss items
□Applicable N/A
The Company does not have any non-recurring profit or loss items listed in the “Explanatory Announcement No. 1 on Information
Disclosure of Publicly Listed Companies - Non-recurring Profit or Loss” defined as recurring profit or loss items.
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Mango Excellent Media Co., Ltd. Annual Report 2022
Section III Management’s Discussion and Analysis
I. Situations of our industry during the Reporting Period
1. Cultural confidence is built and the development of a digital China is accelerated to secure successes in developing a
confident and flourishing digital culture
The report to the 20th National Congress of CPC points out that to build a modern socialist country in all respects, we must
develop a socialist culture with Chinese characteristics and be more confident in our culture; to develop cultural programs and the
cultural section, we will encourage people-centered cultural creation and make sure the cultural sector prioritizes social benefit while
also producing economic returns, deepen reform of the cultural management system and improve economic policy for the cultural
sector; we will implement a national cultural digitization strategy, improve the modern system of public cultural services and launch
new public-benefit cultural programs; and we will improve the modern systems for cultural industries and markets and implement
major cultural projects to spur the development of the sector. The Central Committee of the CPC and the State Council issued the
Plan for the Overall Layout of Building a Digital China (hereinafter, the “Plan”). The Plan points out that we will forge a confident
and flourishing digital culture; we will vigorously develop cyber culture, strengthen the supply of top-quality cyber cultural products
and guide all kinds of platforms as well as Internet users at large to create and produce positive, healthy, upright and beneficial cyber
cultural products; we will promote the digital development of culture, deepen the implementation of national culture digitization
strategy, build a national big data cultural system, and form a data bank of Chinese culture; we will raise capacity for digital cultural
services, create a number of comprehensive digital culture exhibition platforms, and accelerate the development of novel cultural
enterprises, industrial models, and consumption models. Guided by new macro policies and jointly advanced by technology
upgrading and market demands, the Internet digital economy, platform economy, media integration, cultural innovation and content
consumption will embrace new opportunities.
2. Reducing costs, increasing efficiency, and putting profits first have become a common understanding of the long video
industry
According to QM data report, as of the end of 2022, the number of China’s mobile Internet users reached 1.2 billion, further
increasing customer stickiness. On average, Internet users spent more than 177 hours every month, and the number of their use
exceeded 2,600 times. Regarding the video industry, various platforms continued to implement their plans for burden alleviation. The
long video industry moved faster to return to media attributes and content essence. Reducing costs, increasing efficiency, making
both ends meet, and putting profits first have become a common understanding of the industry, and old days of “losing money for the
market” have come to an end. Confronted with the continued fluctuations in the advertising market caused by macroeconomic
instability, leading platforms further intensified efforts to expand their ecological membership layout and conduct refined operations,
and the periodic increase in membership prices has become the market norm. Intelligent, comprehensive, long-tail operations
continued to raise the member conversion rate and made users develop payment habits. The emerging leverage effect brought by
high-quality content of leading platforms and the efforts to explore users’ core extended needs by focusing on low-cost targeted
content jointly push the long video content consumption to a new level.
3. The advertising market moves forward under pressure in 2022, while e-commerce and beauty advertising spending
scale remains in the front rank
According to CTR data, QM data, GfK’s China Consumer Confidence survey and other reports, the advertising market moved
forward under pressure in 2022, and the market shares decreased by 11.8% year on year, including a year-on-year decline of over 57%
in the cinema video advertising spending. Online shopping, online games, digital reading and other Internet industry advertising
spending decreased on a year-on-year basis, while the advertising spending for the non-Internet industries, such as household
appliances, medicine and health care, mother and baby products, maintained a year-on-year growth. Core customer groups, including
e-commerce platforms and international beauty care brands, still ranked among the top in term of advertising spending. Different
channels such as long and short videos, social media and live streaming platforms, continue to show differentiated unique content
advantages and attract different types of advertisers for more accurate advertisement putting cooperation. Given the large-scale
promotion activities at the end of 2022 and the expectations of a stable macroeconomic prospect in 2023, the customers’ confidence
is improving, and the overall advertising growth is expected to resume.
4. The popularization of IPv6 and ultra-high-definition video technologies is accelerated and the smart large-screen
users hit record high
The State Council issued the Plan for Development of the Digital Economy During the “14th Five-Year” Period, pointing that
the popularization of ultra-high-definition TV should be strengthened, and new technologies and business modes such as 8K ultra-
high-definition video, interactive video and immersive video should be developed. The Cyberspace Administration of China, the
National Development and Reform Commission of China and the Ministry of Industry and Information Technology of China jointly
printed and issued the document, pointing out that we should deeply promote IPv6 scale deployment and application, continuously
optimize IPv6 network performance, enhance IPv6 network interoperability, explore and advance live network deployment of IPv6
single stack and SRv6 technology, step up the IPv6 upgrading and transformation of broadcasting networks, and improve the end-to-
end IPv6 support capability of IPTV services. In 2022, China’s three basic telecommunications enterprises continuously devoted
great energy to developing IPTV, Internet data centers, big data, cloud computing, the Internet of Things and other emerging
businesses. According to the data issued by the Ministry of Industry and Information Technology of China, our total IPTV users
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Mango Excellent Media Co., Ltd. Annual Report 2022
reached 380 million, with a net increase of 31.92 million. CSM report shows that China’s audience size, market share and monthly
active users of IPTV and OTT grew steadily throughout 2022, and that the personalized, timely, multi-selective and interactive large-
screen viewing experience made the smart large-screen viewers further show a younger trend, bringing more opportunities for
industry communication and marketing.
5. The films, TV dramas and variety shows implement the plan of “cost-reducing and efficiency-increasing” throughout
2022 and the shares of the long video platforms remain stable by adhering to the business philosophy that “content quality is
the king”
With respect to variety shows, according to the reports issued by ENLIGHTENT, the Institute of Media Economics and other
institutes, 274 home-made seasonal variety shows were released in 2022, an increase of 7 shows year on year. The major long video
platforms enjoyed an important market share, while short video platforms continued to increase their investment in variety shows.
The high-quality variety shows maintained a high level, and the “N-generation variety show” took the lead in the segmented field.
Music variety shows have become a core engine, and their nostalgic theme and sentiment help them become a hot-selling product.
The vertically classified and derivative customized variety shows were further expanded. Efforts were made to develop “small but
beautiful” mid-tier and micro variety shows to precisely attract core target audiences under the guidance of cost reduction and
efficiency increase as well as value co-creation. In terms of films and TV dramas, according to Endata, 301 dramas were released on
long video platforms in 2022, a year-on-year decrease of 18 dramas, with the number of Internet dramas representing over 60%. The
high-quality dramas and series were still concentrated in major long video platforms, and the number of popular dramas wining good
reputation and audience rating increased significantly. The reality, history and women dramas and series outperformed the market,
and more high-quality costume dramas, comedies, suspense dramas and workplace dramas were produced. Further, the content
modes and consumption experience of short dramas made a new breakthrough.
6. Content protection continues to strengthen, and the in-depth cooperation between long and short videos becomes a
general trend
The administrative and judicial organs further enhance efforts to combat infringements of content copyright and continuously
impose more severer punishments. The national-level network copyright protection work, represented by “Jianwang” special
campaigns jointly carried out by the National Copyright Administration, the Ministry of Industry and Information Technology, the
Ministry of Public Security, the Cyberspace Administration of China and other departments to combat Internet infringement and
piracy, has been conducted over a long period of time. This effectively promotes mutual in-depth cooperation between leading long
and short video platforms, so that they work together to protect original copyrights, broadly grant genuine authorization and
effectively advance joint innovation. On the basis of high-quality product content matrix, long video platforms continued to explore
the new direction of micro dramas and micro variety shows, and more and more derivative high-quality PUGC products were
released and well received by target audiences. The attention, rate of becoming widely known and rate of return of the original works
grew steadily. Capitalizing on the traffic, algorithm and scale advantages, the leading short video platforms continued to expand the
ecological deployment of original long videos, and broaden two-way promotion and distribution channels of the original, cooperative
and derivative long videos between upstream and downstream, and further explore the global market.
7. The new AI is on the upswing, and AIGC opens up a new direction of content creation
The new AI represented by ChatGPT grows rapidly, and new opportunities, new modes and new applications of related
industries and sectors have commanded high attention worldwide. The heads of related departments in the Ministry of Science and
Technology of China said that, AI, as a strategic emerging technology, has become an important driver for scientific and
technological innovation, industrial upgrading and productivity improvement in many fields. In March 2023, the Ministry of Science
and Technology of China officially started the special deployment of “Artificial Intelligence for Science”, a project to promote the
use of AI in frontier sci-tech research, with a view to accelerating the building of a new generation of national AI innovation
platforms. Local AI special campaigns or development plans were issued successively in Beijing, Tianjin, Chengdu and Hangzhou,
etc., further supporting the development of China’s AI and its applications. The evolution of AIGC creation and production system
for texts, images, 3D, audio, video and games based on a new generation of AI technology is accelerating. New AI has a broad
prospect of application in the key aspects of content creation and systemic design from content informatization, digitization to
intelligentization, which exerts far-reaching impacts on the evolution and upgrading of the cultural industry in terms of production
efficiency, cost optimization and access threshold. As a result, more and more major Internet platforms, games and content-based
companies begin to set foot in this field.
8. The e-commerce expansion continues to accelerate across all domains and all scenarios, and the content e-commerce
penetration rate increases steadily
According to QM data, the number of major e-commerce platform users remained on the rise in 2022, and the overall gap
between the leading platforms and medium-sized platforms continued to widen in terms of user scale, resource investment and other
key areas. In the industry with strong demand for liquidity, e-commerce platforms worked to deploy multiple channels, and actively
made the growth of user scale become a new growth driver. The users of the mobile shopping all-scenic traffic channels represented
by applets reached 700 million, becoming a core pillar of differentiated ecological traffic. The self-built e-commerce channels
emerged in leading vertical industries such as liquor and mobile phones. The interest-based content e-commerce platforms
represented by “live + short video” further deepened the integration of content and consumption scenarios, increasing consumer
reach and conversion rates. By community marketing, the use habits of targeted users were further cultivated. The user scale of the
group, community and takeaway e-commerce platforms were expanded steadily.
II. Our main business during the Reporting Period
The Company shall comply with the disclosure requirements for “Internet Video Business” set forth in the Guide on Self-
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Mango Excellent Media Co., Ltd. Annual Report 2022
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 (Hunan Broadcasting System). 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’s Internet video service
Mango TV’s Internet video business is mainly categorized into advertising, membership and operator businesses. The
advertising business is mainly categorized into soft advertising business and hard advertising business. The soft advertising business
focuses on contents, fully explores the marketing value of high-quality content IPs, and provides clients with naming, placement and
other advertising products; hard advertising business provides clients with patching, inserting and other advertising services. The
membership business is divided into two parts, that is, the online part and the offline part. The online membership business means
that the Company attracts users to purchase membership packages through online consumption with its enriched copyright resources
and high-quality exclusive contents; the offline membership business mainly attracts target audience and make them members
through promotional activities in various forms. The operator’s large-screen business model is mainly to sign cooperation agreements
with major operators, cable TV operators, etc., where the Company provides content products for promotion and marketing, and both
parties share related revenues.
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 include 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 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 potentials, 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 derivatives development and location-based entertainment business, relying on the IPs of Who’s the Murderer, Great Escape
and other 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 includes Happigo and Xiaomang. Happigo e-commerce seeks to develop a service and tool
platform around the closed loop of large-screen TV and TV audience sales, with its focus on TV shopping business, and supply chain
building and expansion. Xiaomang e-commerce is designed as “a content e-commerce platform focusing on home-made new
fashions”, focuses on the integration of IP content and e-commerce modes, and creates a vertical Mang brand with the help of
multiple unique content-based product lines. Meanwhile, we strengthened the overall linkage between Xiaomang e-commerce and
each business sector of the overall Mango ecosphere. We took advantage of IP cooperation rights and interests to further expand the
cooperation matrix of home-made brands, and continued to improve the closed loop of “content + video + e-commerce”.
III. Analysis of core competencies
1. Opportunities for in-depth integrated development of media
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Mango Excellent Media Co., Ltd. Annual Report 2022
The report to the 20th National Congress of CPC points out that we will improve the systems for communications across all
forms of media and create a new environment of mainstream public opinion. In this report, a comprehensive plan is developed for
being more confident in our culture, carrying forward China’s cultural heritage and turning China into a country with a strong
socialist culture, bringing new strategic opportunities for the in-depth integrated development of media. As a Party media and state-
owned enterprise, we build the integration ecosystem of mainstream new media group in a comprehensive manner, keep improving
the effectiveness of international communication, and deliver high-quality political leadership projects, hot innovation projects,
operation optimization projects, industrial upgrading projects, and youth talent projects. By strengthening and innovating the Internet
content building, we have effectively turned opportunities into development effectiveness.
2. System and mechanism advantages in joint development of double platforms
Hunan Broadcasting System has the advantage of leading double platforms in the country, i.e. the mainstream new media
platform Mango TV and the traditional media Hunan TV. These two platforms continue to create a new pattern of media integration,
realizing the effect of making one plus one bigger than two. These two platforms have actively explored the integration of strategies,
marketization of mechanism and rejuvenation of talents, and built a joint development model characterized by co-creation and
sharing. With these efforts, we have realized opening up and cooperation in 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 in iteration and symbiosis.
3. Mango innovation gene based on the concept of “innovate or die”
We carry Mango innovation spirit of “innovate or die”, and continue our efforts to explore endogenous driving force through the
synergy innovation of the system, management, business and technology. With respect to mechanisms, we 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, we have organized “Mango
Youth Talk”, “Young CEO Club”, “Qingmang Internship Program” and other activities to iterate young talent training programs and
internal competition mechanisms, and promoted the rejuvenation of the management team; with respect to business, we have got rid
of the dependency on channels, set the goal of “do it first or be the best”, create highly innovative content works, and preserve our
core competencies in proprietary content.
4. The intensive and smart mid-end enabling production of proprietary content
We encourage people-centered cultural creation, 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 24 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 25 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 leading smart mid-end matrix in China’s video industry, and realized standardized
coordination in content, technology, risk control and operation and other aspects, 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 to have them focus on quality and innovation 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”
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. Closed loop of new media ecosystem with joint actions of the upstream and downstream of the entire industry chain
In reliance on our advantages in proprietary content, we stick to creating and controlling content independently, and have built
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 “content + video + e-commerce”, and realizes monetization of derivatives through multiple online and
offline channels. All aspects in our industry chain coordinate and supplement with each other, creating an integrated Mango
ecosystem covering the entire industry chain with special characteristics in the context of media convergence.
7. “One cloud and multiple screens” system with multiple licenses covering all terminals
Mango TV is the sole market player in the Internet video industry that holds both IPTV and OTT business licenses, and its smart
large-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, PC, TV, IPTV and OTT. We are the first video media platform that has actually built “one cloud and multiple screens” system
in the industry.
14
Mango Excellent Media Co., Ltd. Annual Report 2022
8. High-quality development of business model
We stick to the general principle that the content is the king, and continuously improve the content and market input-output ratio
with the help of high-quality content and technological innovation. We have blazed a sustainable 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 a market player in the Internet video industry that has made profits and maintained profitability.
IV. Analysis of main business
1. Overview
In 2022, China successfully convened the 20th National Congress of CPC. An ambitious blueprint has been drawn for building a
modern socialist country in all respects and advancing the great rejuvenation of the Chinese nation on all fronts through a Chinese
path to modernization, sounding a clarion call of the times for us to forge ahead on a new journey. Guided by Xi Jinping’s Thought
on Socialism with Chinese Characteristics for a New Era and the spirit of Xi Jinping’s series of important speeches on media
integration, we, as a new media platform under Hunan Broadcasting System and a pioneer in building mainstream new media group,
are committed to shouldering the mission as a Party media and state-owned enterprise, namely, “focusing on upholding socialism
with Chinese characteristics, rallying public support, fostering a new generation of young people, developing Chinese culture, and
better presenting China to the world”. We also strive to advance the media integration to develop in depth and breadth, keep the
fundamentals of core business, improve quality while ensuring stability in economic activities, and consolidate the foundations of
high-quality development. During the Reporting Period, our operating revenue totaled RMB 13.704 billion, a decrease of 10.76%
year on year; and the net profit attributable to the shareholders of the Listed Company was RMB 1.825 billion, a decrease of 13.68%
year on year. Our core business, Mango TV Internet video business, realized an operating revenue of RMB 10.418 billion, down by
7.49% year on year. We were listed in the 14th “Top 30 National Cultural Enterprises”, and Mango TV ranked 19th among the “2022
China Internet Comprehensive Strength Enterprises”, the only state-controlled enterprise among top 20.
1. Give full play to the advantages of integrated communication and resolutely shoulder the mission and responsibilities
as a Party media
As the largest listed new media platform enterprise managed and controlled by the CPC in China, we have always adhered to the
leadership of the Party with utter loyalty and give top priority to expanding mainstream ideas. We promote mainstream value
communication with innovative and young spirit, perform social responsibilities, and are dedicated to ensuring that underlying values
hold greater appeal than ever before, and the wave of positive energy felt throughout society is building. During the Reporting Period,
we closely followed and publicized the main line of work included in the report to the 20th National Congress of CPC. For example,
we set the “Special Zone for the 20th National Congress of CPC” on the first screen of Mango TV’s homepage, focusing on the
reporting and publicizing the “Following the Footsteps of the General Secretary”, “The Past Decade”, “Times of the 20th National
Congress of CPC”, “Hard Work in Great Age” and other special events in the whole media. We also established a multi-dimensional
communication matrix of positive energy, actively created an enthusiastic and positive public opinion atmosphere, and fully
demonstrated the course of endeavor and great achievements for advancing the rejuvenation of the Chinese nation on all fronts
through a Chinese path to modernization. By sticking to the theme that China’s culture should go broad, and around the interpretation
of Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, the 20th National Congress of CPC, Two Sessions,
101st Anniversary of CPC, 25th Anniversary of Hong Kong’s Return and other major events, the Mango TV International APP
continued to explore how to tell China’s stories well and make the voice of China heard on the world stage, and our .international
works have won the China News Award for four consecutive years. All of this have rewarded us with an ever increasing overseas
influence. The APP now covers over 195 countries and regions worldwide with over 118 million downloads.
2. Keep advancing in-depth media integration and build hubs for long video content creation
We fully implement the strategic plans of the Party Central Committee on accelerating the development of media integration,
adhere to the “sustainability” and “futurism”, and fulfill the values guiding role of media and innovation in proprietary content. In
addition, we focus on building Mango’s in-depth integration ecosystem, make better use of the content supply advantages of media
integration development, continuously improve the diversity, innovation and sustainability of content ecosystem, so as to secure
development advantages with content advantages. Mango TV has 24 variety show production teams, 25 film and TV drama
production teams and 34 strategic studios under the Xinmang Program, and is dedicated to building hubs for talents and innovation in
China’s long video production.
With respect to variety shows, during the Reporting Period, Mango TV released 77 variety show programs, of which 4 N-
generation programs, including “Sisters Who Make Waves S3”, “Who’s the Murderer S7”, “Great Escape S4” and “Call Me By Fire
S2”, were named in the list of Top 10 Effective View Counts of Online Variety Shows in 2022 (from ENLIGHTENT), with “Sisters
Who Make Waves S3” taking the first. This further consolidates our leading position in the industry. The “Infinity and Beyond 2022”
(also known as “Endless Melody”), an innovative program, is created for celebrating the 25th anniversary of Hong Kong’s return.
This program was honored as the “Cultural Integration Bellwether in the Greater Bay Area” and also entered the “Network
Audiovisual Program Quality Creation and Dissemination Projects of the National Radio and Television Administration”. The
derivative variety show “Go for Happiness” won reputation and popularity and had a score of 9.6 points on the Douban Platform, and
its sequel “Go for Happiness S2” also gained a score of 9.5 points.
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Mango Excellent Media Co., Ltd. Annual Report 2022
With respect to films and TV dramas, during the Reporting Period, Mango TV released 163 films and TV dramas, including key
films and TV dramas, and short and micro dramas under the “Big Mango Program”. 4 TV dramas, including “The Power Source”,
“Draw the Line”, “The Long River” and “Twenty Your Life On S2”, were named in the list of “2022 Selected Chinese Dramas” of
the National Radio and Television Administration, and “A Land So Rich In Beauty” won China’s 33rd TV Series “Flying Award”.
“Mango Monsoon” released 5 dramas (which were first released on TV and then on online platforms) and 4 online dramas. “Guo’s
Summer”, “A Year Without A Job”, “The Disappearing Child” and other dramas, which focus on social reality topics from different
dimensions, have won the championship of multi-network provincial TV channels and gained high attention from the market. “Big
Mango Program” released a series of high-quality short TV dramas as represented by “A Familiar Stranger” and “The Killer is also
Romantic”, achieving good results.
3. Actively overcome the disturbance of external factors and firmly keep the fundamentals of core business
During the Reporting Period, we made active response and breakthroughs, removed the adverse impact of the decline in the
Internet advertising industry to the greatest extent possible, and firmly kept the fundamentals of Mango TV Internet video business.
With respect to advertising business, there was still some pressure. During the Reporting Period, we realized the operating
revenue of RMB 3.994 billion, a decrease of 26.77% year on year, and the YoY scale of decline dropped compared to that in the first
half of the year. Given the industry uncertainties, Mango TV upgraded its joint investment attraction mechanism. To be specific, it
upgraded single-platform content to a comprehensive dual-platform, multi-layered and full-chain marketing system, so as to provide
the advertisers with higher-value and more competitive integrated marketing solutions. Meanwhile, with respect to innovative
marketing strategies, we provided a package of special marketing solutions to gain exclusive budget and the cooperation amounts
with a number of key customers witnessed continuous growth against economy downtrend; we also launched online super show,
naked eye 3D show and other new forms of advertising, and expanded 32 new non-pre-roll brands in the second half of the year,
securing a rise in the non-pre-roll hard advertising revenue.
The number of members hit a historic high. Mango TV took multiple measures such as content operation, activity marketing and
channel expansion to make innovation and improve efficiency. With these efforts, the member scale hit a record high, there had 59.16
million active members as of the end of 2022, and our revenue from the membership business in 2022 totaled RMB 3.915 billion, an
increase of 6.15% year on year. Mango TV created a content operation system with Mango’s characteristics, developed a series of
16
Mango Excellent Media Co., Ltd. Annual Report 2022
customized variety shows for members with respect to key IPs, e.g., “Go for Happiness” and “Welcome to the Mushroom House”;
launched a number of integrated marketing activities such as “Cool Season” and “Selection Season”, as well as a number of limited
IP cards such as the “Card for Back to Field”, “Card for Great Escape”, and “Card for The Long River” to meet the needs of different
consumer groups; strengthened channel coverage and attraction of new members, and developed heavyweight membership products
such as China Mobile’s “Mango Card” and Huamang Fusion Membership.
The operator business grew steadily. During the Reporting Period, our revenue from the operator business totaled RMB 2.509
billion, an increase of 18.36% year on year, maintaining a steady increase. With respect to out-of-province business, in reliance on
the strategic cooperation with the three major operators, especially China Mobile, we continued to deepen the layout of large screen
across the country and expand the in-depth cooperation in various fields such as content innovation to improve content reach rate.
With respect to provincial business, we piloted the unified billing mode of “Mango Big TV membership” and realized a steady
increase in value-added income; strengthened the content operation and created Hunan IPTV’s “Happykan” and “Mangtoutiao”,
effectively increasing users’ VODs and enhancing customer stickiness.
4. Increase the resource integration and contribute to the rapid development of new forms of business
Xiaomang e-commerce continues to be designed as “a content e-commerce platform focusing on home-made new fashions”,
and by strengthening the overall linkage between Xiaomang e-commerce and each business sector of the overall Mango ecosphere,
developed core vertical products. As a result, our gross merchandise volume (“GMV”) in 2022 was seven times that of previous year
and the daily active user (“DAU”) peak reached 2.06 million, making initial progress. During the Reporting Period, Xiaomang e-
commerce completed the first round of financing, introduced the necessary liquidity for the strategic cultivation period, and
accelerated the construction of the closed loop of “content + video + e-commerce”. First, we focused on the integration of content
and e-commerce business, and achieved precise reach at the target consumers with the help of IPs, developed representative products
such as self-owned brand “No. 1” baseball clothes. Second, we actively explored innovative strategies for selling goods in scenarios,
and made the use of Mango’s high-quality IP resources such as “Who is the Murderer”, “Detective School” and “Racing Mangoers”
to drive the sales of cooperative goods and expand new channels. Third, we created special evening parties for home-made products,
including Shopmang Flower Cultivation Night, Xiaomang New Year’s Shopping Festival, conducted marketing activities in
conjunction with major IPs such as “Sisters Who Make Waves” and “Call Me By Fire” to expand the cooperation brand matrix and
the influence of Xiaomang brand. Xiaomang e-commerce has established multiple product lines with characteristics covering
clothing, food, beauty, celebrity souvenir, art toys, cute pets, light camping, etc. In the future, it will continue to explore the ability to
sell goods in content scenarios and lead the trend of home-made product consumption for young users. While Happigo e-commerce
seeks to develop a service and tool platform around the closed loop of large-screen TV and TV audience sales, with its focus on TV
shopping business, and supply chain building and expansion.
5. Build business synergy ecosystem and stimulate endogenous momentum through internal integration
During the Reporting Period, influenced by objective conditions, the artist agency and other business were affected to a certain
extent. In order to enhance management efficiency and strengthen ecological synergy, we gave full play to the brand effect of EE-
Media’s first-class artist agency and famous record company in China, and promoted the comprehensive integration of the artist
agency business and music copyright business of each subsidiary. With respect to the artist agency business, we established an
interactive mechanism between content production and artist cultivation, and gave priority to contracted artists for content products
such as variety shows, films and TV dramas, realizing two-way empowerment of platforms and artists. During the Reporting Period,
our artists appeared in many films and TV dramas including “The Power Source”, “Draw the Line” and “Being A Hero”. Regarding
music copyright business, with EE-Media as the sole distributor of music works on the double platform, we sought business
increments by creating individual albums of key contracted artists, increasing copyright licensing, expanding cooperation platforms
and intensifying music product planning. Meanwhile, in reliance on the resources of high-quality variety shows, films and TV dramas
on double platforms, we continuously expanded the scale of variety show, film, and TV music copyright. As of the end of the
Reporting Period, we had more than 2,000 pieces of record, film, TV and variety show music protected by copyright.
2. Revenues and costs
(1) Components of operating revenue
Overall situation of operating revenue
In RMB
2022 2021
Proportion to Proportion to Y/Y % change
Amount Amount
operating revenue operating revenue
Total operating
13,704,339,712.31 100% 15,355,863,482.07 100% -10.76%
revenue
By segment
Mango TV Internet
10,417,661,860.99 76.02% 11,261,249,957.21 73.33% -7.49%
video business
New media
interactive
1,118,058,249.34 8.16% 1,877,457,854.82 12.23% -40.45%
entertainment
content production
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Mango Excellent Media Co., Ltd. Annual Report 2022
and operation
Content E-business 2,136,369,043.68 15.59% 2,157,213,530.01 14.05% -0.97%
Other main
16,292,021.76 0.12% 39,485,705.99 0.26% -58.74%
business
Revenue from
15,958,536.54 0.12% 20,456,434.04 0.13% -21.99%
other business
By product
Mango TV Internet
10,417,661,860.99 76.02% 11,261,249,957.21 73.33% -7.49%
video business
New media
interactive
entertainment 1,118,058,249.34 8.16% 1,877,457,854.82 12.23% -40.45%
content production
and operation
Content E-business 2,136,369,043.68 15.59% 2,157,213,530.01 14.05% -0.97%
Other main
16,292,021.76 0.12% 39,485,705.99 0.26% -58.74%
business
Revenue from
15,958,536.54 0.12% 20,456,434.04 0.13% -21.99%
other business
By region
Hunan 3,247,684,921.20 23.70% 4,224,776,693.61 27.51% -23.13%
Outside Hunan 10,456,654,791.11 76.30% 11,131,086,788.46 72.49% -6.06%
By sales model
Sale 13,704,339,712.31 100.00% 15,355,863,482.07 100.00% -10.76%
(2) Segments, products, regions or sales models representing more than 10% of operating revenue or profit
Applicable N/A
In RMB
Y/Y % change Y/Y % change
Gross Y/Y % change
Operating revenue Operating cost in operating in operating
margin in gross margin
revenue cost
By segment
Mango TV
Internet video 10,417,661,860.99 6,135,708,871.91 41.10% -7.49% -3.38% -2.51%
business
New media
interactive
entertainment 1,118,058,249.34 903,918,572.35 19.15% -40.45% -41.93% 2.06%
content
production
Content E-
2,136,369,043.68 1,999,701,035.45 6.40% -0.97% 1.57% -2.33%
business
Others 32,250,558.30 27,705,011.28 14.09% -46.20% -5.65% -36.92%
By product
Mango TV
Internet video 10,417,661,860.99 6,135,708,871.91 41.10% -7.49% -3.38% -2.51%
business
New media
interactive
1,118,058,249.34 903,918,572.35 19.15% -40.45% -41.93% 2.06%
entertainment
content
18
Mango Excellent Media Co., Ltd. Annual Report 2022
production
Content E-
2,136,369,043.68 1,999,701,035.45 6.40% -0.97% 1.57% -2.33%
business
Others 32,250,558.30 27,705,011.28 14.09% -46.20% -5.65% -36.92%
By region
Hunan 3,247,684,921.20 2,128,310,905.82 34.47% -23.13% -20.58% -2.10%
Outside Hunan 10,456,654,791.11 6,938,722,585.17 33.64% -6.06% -3.97% -1.45%
By sales model
Sale 13,704,339,712.31 9,067,033,490.99 33.84% -10.76% -8.46% -1.65%
In case of any adjustment to the statistic scale for main business data, the main business data of the most recent reporting period as
adjusted according to the statistic scale applied at the end of the current Reporting Period:
Applicable N/A
(3) Whether the Company’s revenue from sale of tangible goods is higher than the revenue from labor service?
Yes No
(4) Performance of material sales contracts and material purchase contracts of the Company as of the end of the Reporting
Period
Applicable N/A
(5) Components of operating cost
Classification of segments and products:
In RMB
2022 2021
Proportion Proportion Y/Y %
Segment Item
Amount to operating Amount to operating change
revenue revenue
Mango TV
Internet video
Internet video 5,771,468,065.50 63.65% 5,929,892,854.51 59.86% -2.67%
business
business
Mango TV
Operator
Internet video 364,240,806.41 4.02% 420,684,971.83 4.25% -13.42%
business
business
New media
interactive Copyright and
749,036,548.43 8.26% 1,402,186,406.77 14.16% -46.58%
entertainment production costs
content production
New media
Employee
interactive
benefits and 154,882,023.92 1.71% 154,498,988.90 1.56% 0.25%
entertainment
others
content production
Content E- Content E-
1,999,701,035.45 22.05% 1,968,834,667.67 19.88% 1.57%
business business
Other main Other main
14,003,554.74 0.15% 20,199,308.10 0.20% -30.67%
business business
Costs of other Costs of other
13,701,456.54 0.15% 9,165,573.04 0.09% 49.49%
business business
In RMB
2022 2021
Proportion Proportion Y/Y %
Product Item
Amount to operating Amount to operating change
revenue revenue
Mango TV Internet video
5,771,468,065.50 63.65% 5,929,892,854.51 59.86% -2.67%
Internet video business
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Mango Excellent Media Co., Ltd. Annual Report 2022
business
Mango TV
Operator
Internet video 364,240,806.41 4.02% 420,684,971.83 4.25% -13.42%
business
business
New media
interactive Copyright and
749,036,548.43 8.26% 1,402,186,406.77 14.16% -46.58%
entertainment production costs
content production
New media
Employee
interactive
benefits and 154,882,023.92 1.71% 154,498,988.90 1.56% 0.25%
entertainment
others
content production
Content E- Content E-
1,999,701,035.45 22.05% 1,968,834,667.67 19.88% 1.57%
business business
Other main Other main
14,003,554.74 0.15% 20,199,308.10 0.20% -30.67%
business business
Costs of other Costs of other
13,701,456.54 0.15% 9,165,573.04 0.09% 49.49%
business business
Analysis: None.
(6) Changes in the scope of consolidation during the Reporting Period
Yes No
During the Reporting Period, Changsha Xingmang Artist Culture Communication Partnership, Changsha Xingzhimang
Entertainment Media Co., Ltd., Changsha Xingmang Interactive Entertainment Media Partnership (Limited Partnership), and Hunan
Immersion Technology Co., Ltd. were newly established. See “VIII. Changes in Scope of Consolidation” under “Section X Financial
Report” for details.
(7) Material changes or adjustments in respect of business, products or services of the Company during the Reporting Period
Applicable N/A
(8) Major customers and suppliers
Major customers of the Company:
Aggregate sales revenue from top 5 customers (RMB) 4,832,064,340.93
Proportion of aggregate sales revenue from top 5 customers to
35.26%
annual sales revenue
Proportion of aggregate sales revenue from related parties
27.76%
among top 5 customers to annual sales revenue
Particulars of top 5 customers:
Proportion to annual sales
No. Name of customer Sales revenue (RMB)
revenue
1 Customer 1 2,166,512,518.08 15.81%
2 Customer 2 1,637,712,672.66 11.95%
3 Customer 3 537,210,743.30 3.92%
4 Customer 4 268,149,541.96 1.96%
5 Customer 5 222,478,864.92 1.62%
Total -- 4,832,064,340.93 35.26%
Other information of major customers:
Applicable N/A
The sales revenue from the largest customer reflects the aggregate sales revenue from our affiliate Migu Culture Technology Co., Ltd.
and its controlled subsidiaries, and the sales revenue from the second largest customer reflects the aggregate sales revenue from GBS
(Hunan Broadcasting System) and its controlled subsidiaries.
Major suppliers of the Company:
Aggregate purchase amount from top 5 suppliers (RMB) 1,808,811,480.15
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Mango Excellent Media Co., Ltd. Annual Report 2022
Proportion of aggregate purchase amount from top 5 suppliers
19.95%
to annual purchase cost
Proportion of aggregate purchase amount from related parties
11.02%
among top 5 suppliers to annual purchase cost
Particulars of top 5 suppliers:
Proportion to annual purchase
No. Name of supplier Purchase amount (RMB)
cost
1 Supplier 1 998,977,312.84 11.02%
2 Supplier 2 267,947,374.14 2.96%
3 Supplier 3 194,716,981.13 2.15%
4 Supplier 4 188,679,246.00 2.08%
5 Supplier 5 158,490,566.04 1.74%
Total -- 1,808,811,480.15 19.95%
Other information of major suppliers:
Applicable N/A
The purchase amount from the largest supplier reflects the aggregate purchase amount from GBS (Hunan Broadcasting System) and
its controlled subsidiaries.
3. Expenses
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Mango Excellent Media Co., Ltd. Annual Report 2022
In RMB
2022 2021 Y/Y % change Reason of significant change
Selling expenses 2,179,889,009.35 2,469,328,212.64 -11.72% Mainly reduction in advertising expenditure and labor cost
Administrative
623,943,425.86 695,934,611.78 -10.34% Mainly reduction in logistics office cost and labor cost
expenses
Financial expenses -131,463,023.66 -101,210,337.17 29.89% Mainly increase in interest income
R&D expenses 234,726,198.48 271,991,403.40 -13.70% Mainly reduction in the labor cost for R&D personnel
4. R&D expenses
Applicable N/A
Expected effect on the future
Description of major R&D project Purpose Progress Objectives
development of the Company
The project can support the ever-
expanding demand for content
The construction of sub-modules
To improve the security of platform production and distribution, meet the
required for 6 projects, including
data contents and other information, growing needs of users for the
Use proprietary technologies to build Mango TV’s basic service platform,
and enhance R&D efficiency; development of audio-visual
a basic service platform, an content production management new
provide efficient and powerful tools experience, help Mango TV to
intelligent content production and infrastructure platform, audio-visual
for smart content production, refined enhance its image in the industry and
Mango TV smart audio-visual media processing platform, a content media business application
operation and multi-channel its soft power, and build a media
service platform distribution platform, an application innovation platform, VR application
distribution, help with “4K+5G” technology moat. It is the only way
service platform and other systems, research platform, audio-visual
high-definition intelligent to reduce costs and improve
and form a domestic leading smart media refined operation support
production, explore VR and other efficiency in operation and enhance
audio-visual media service platform. platform, and Guangmang cloud
cutting-edge technology scenarios user experience, and is of great
production and broadcasting
and realize their industrialization. significance for the Company to
platform, has been started.
maintain its core competitiveness in
the future.
The broadcasting and control The product fully supports signal 1. To implement the safe
The smartly managed broadcasting management system has been built: source reception, live broadcast, broadcasting regulations of the
and control system is a key project of the signal source receipt system broadcast monitoring, fault alert and National Radio and Television
Mango TV for ensuring secure live transformation, livestreaming location and emergency response for Administration, and build a signal
broadcast and improving picture transcoding system upgrading and IPTV in Hunan, and provides data source reception, livestreaming
quality, and is designed to build an transformation, multicast switching analysis and logical display transcoding and broadcasting routing
Smartly managed broadcasting and
IP broadcasting and control platform system upgrading and capabilities, and data system support 1:1 backup system with full coverage
control system using virtual, SDN and other next- transformation, SDN system for scientific broadcast management. 2. To formulate a standardized data
generation technologies under the construction, data analysis system The new distributed broadcast and interface, enhance the safety
development strategy of integration construction and basic network control model with data link logical performance and upgrade the image
and intelligentization of radio, TV optimization and adjustment have display + accurate fault location quality of the Mango TV
and media. been completed, downstream CMS is developed independently will be the livestreaming system via smartly
connected in business, the channel important tool for improving the managed broadcasting and control
22
Mango Excellent Media Co., Ltd. Annual Report 2022
coverage rate is 100%, and the stability of live broadcast of Mango system based on the principles of
system has been launched smoothly TV. safe broadcasting and standardized
as a whole. operation and maintenance, and
make it fully adapt to the current and
future development of integrated
media business needs.
To implement the “Ultra-HD Video The first phase of the project has
Industry Development Action Plan been completed: the self-adaption To develop the “Mango Sound” and
(2019-2022)” jointly promulgated by coding, coding in areas of interest, “Mango 3D Sound” product
the Ministry of Industry and video repair, video denoising, super solutions based on the domestic
Information Technology, resolution, SDR-to-HDR technology AVS2 standard audio part, as well as Lay a solid technical foundation for
the
National Radio and Television iterative optimization and the end-to-end solution on the basis the high growth of the Mango TV
Key technology R&D project for
Administration and China Media productization promotion have been of the 3D sound bed and post- platform, and contribute to the core
ultimate audio-visual experience
Group, and follow the overall completed; video frame insertion, 3D production workstation for objects, technology in the Internet audio-
technical route of “4K first, followed
sound coding, decoding, sound effect 3D sound audio coding and terminal visual and other fields of China.
by 8K” to bring users “extreme library and R&D for production virtual sound algorithm technology,
audio-visual” experience, including software have been completed, benchmarking “Dolby Audio” and
the improvement of picture quality which have been promoted on the “Dolby Atmos”.
and sound quality. platforms as products.
To systematize new businesses,
standardize business operation and Create a highly integrated business
processes; optimize system modules The system upgrading and To help with business development
System upgrading and integration system to adapt to the ever-changing
related to functional management, to integration have been completed and enhance management efficiency
meet the needs for business business forms
development
Particulars of R&D personnel:
2022 2021 Y/Y % change
Number of R&D personnel 535 595 -10.08%
Proportion of R&D personnel
12.97% 14.79% -1.82%
to total number of employees
Education background of R&D personnel
Undergraduates 395 439 -10.02%
Masters 92 100 -8.00%
Others 48 56 -14.29%
Ages of R&D personnel
23
Mango Excellent Media Co., Ltd. Annual Report 2022
Below 30 153 155 -1.29%
30-40 350 415 -15.66%
Others 32 25 28.00%
Amount of R&D expenses and proportion of R&D expenses to operating revenue in the past three years:
2022 2021 2020
Amount of R&D expenses
341,251,899.60 369,361,905.14 319,282,521.92
(RMB)
Proportion of R&D expenses
2.49% 2.41% 2.28%
to operating revenue
Amount of R&D expenses
106,525,701.12 97,370,501.74 134,897,573.20
capitalized (RMB)
Proportion of capitalized
R&D expenses to total R&D 31.22% 26.36% 42.25%
expenses
Proportion of R&D expenses
capitalized to the net profit of 6.03% 4.60% 6.82%
the current period
24
Mango Excellent Media Co., Ltd. Annual Report 2022
Analysis of the cause and effect of significant change in the composition of R&D personnel:
Applicable N/A
Analysis of the cause of significant change in the proportion of R&D expenses to operating revenue compared with the preceding
year:
Applicable N/A
Analysis of the cause and reasonableness of significant change in the proportion of R&D expenses capitalized:
Applicable N/A
5. Cash flows
In RMB
Item 2022 2021 Y/Y % change
Subtotal of cash provided by
13,145,180,960.83 14,948,148,074.05 -12.06%
operating activities
Subtotal of cash used in
12,593,534,062.84 14,386,347,191.68 -12.46%
operating activities
Net cash flows from operating
551,646,897.99 561,800,882.37 -1.81%
activities
Subtotal of cash provided by
14,213,254,913.96 5,738,565,482.92 147.68%
investment activities
Subtotal of cash used in
13,559,572,200.09 8,931,089,507.90 51.82%
investment activities
Net cash flows from investment
653,682,713.87 -3,192,524,024.98 120.48%
activities
Subtotal of cash provided by
1,893,632,088.23 4,566,523,925.07 -58.53%
financing activities
Subtotal of cash used in
348,471,673.05 339,498,633.27 2.64%
financing activities
Net cash flows from financing
1,545,160,415.18 4,227,025,291.80 -63.45%
activities
Net increase in cash and cash
2,750,948,433.80 1,596,914,430.17 72.27%
equivalents
Analysis of the main causes of significant changes in the relevant data:
Applicable N/A
The net cash flow from operating activities decreased by 1.81% YoY, basically flat compared with that of the last year.
The net cash flow from investment activities increased by 120.48% YoY, mainly due to the redemption of bank finance products
purchased last year.
The net cash flow from financing activities decreased by 63.45% YoY, mainly due to the significant decrease in cash inflow from
financing activities this year compared to that of the last year caused by the fund raised in the last year.
Analysis of the significant difference between net cash flows from operating activities during the Reporting Period and net profit in
current year:
Applicable N/A
Mainly due to the cash inflow from a large amount of notes discounted accrued to financing activities in the current year.
V. Analysis of non-main business
Applicable N/A
In RMB
Proportion to Whether or not
Amount Main source
total profit sustainable
Income on bank wealth
Investment income 132,976,709.08 7.53% No
management products
25
Mango Excellent Media Co., Ltd. Annual Report 2022
Impairment loss on
Impairment loss on assets -167,832,371.04 -9.50% accounts receivable and No
inventories provisioned
Income from rights
Non-operating revenue 45,620,655.36 2.58% No
protection actions
Expenses in connection
Non-operating expenses 4,384,991.00 0.25% No
with indemnity
VI. Analysis of assets and liabilities
1. Material changes in the components of assets
In RMB
End of 2022 Beginning of 2022 Reason of
Proportion to Proportion to Change significant
Amount Amount change
total assets total assets
Mainly due to
the increase in
redeemed bank
wealth
Monetary management
9,686,689,374.39 33.35% 6,974,465,151.81 26.71% 6.64%
capital products and
increase in
accumulative
operating
revenues
Accounts
3,235,431,528.25 11.14% 3,113,742,914.88 11.93% -0.79%
receivable
Contract assets 929,403,936.51 3.20% 903,053,743.61 3.46% -0.26%
Inventory 1,600,131,838.66 5.51% 1,689,546,700.79 6.47% -0.96%
Investment
83,381,033.60 0.29% 0.29%
properties
Long-term
equity 4,123,864.73 0.01% 23,882,517.37 0.09% -0.08%
investment
Fixed assets 165,275,869.62 0.57% 184,450,336.98 0.71% -0.14%
Right-of-use
172,188,222.02 0.59% 210,304,495.42 0.81% -0.22%
asset
Short-term loan 1,057,932,476.80 3.64% 39,786,903.37 0.15% 3.49%
Contract
1,044,740,162.71 3.60% 1,327,294,063.85 5.08% -1.48%
liabilities
Lease liabilities 131,515,067.86 0.45% 169,643,622.50 0.65% -0.20%
Analysis of high proportion of overseas assets:
Applicable N/A
2. Assets and liabilities at fair value
Applicable N/A
In RMB
Gain Aggrega Impairme
or loss te nt loss Amount
Amount sold in
Opening on changes recognize acquired in the Other Closing
Item the Reporting
balance chang in fair d in the Reporting changes balance
Period
es in value current Period
fair recorded period
26
Mango Excellent Media Co., Ltd. Annual Report 2022
value in equity
Financial assets
1. Financial
assets held
for trading
3,410,000, 13,371,990,000 14,086,990,000. 2,695,000,000.
(excluding
000.00 .00 00 00
derivative
financial
assets)
2. Financing
-
with 137,800,0
89,614,557. 48,185,442.19
accounts 00.00
81
receivable
-
3,547,800, 13,371,990,000 14,086,990,000. 2,743,185,442.
Subtotal 89,614,557.
000.00 .00 00 19
81
Financial
0.00 0.00
liabilities
Other changes:
Other changes of receivables financing mainly refer to changes of discounting, endorsement or acceptance upon maturity of
acceptance bills.
Whether there’s any material change in the measurement properties of main assets of the Company during the Reporting Period?
Yes No
3. Encumbrances on assets as of the end of the Reporting Period
As of the end of the Reporting Period, the total amount of restricted assets was RMB 1,048,758,700, including capitals of RMB
22,600,000 frozen in litigations, third-party platform deposit RMB 1,742,100, and other deposit RMB 20,900; endorsed or
discounted commercial bill undue RMB 1,024,395,700.
VII. Analysis of investments
1. Overall situation
Applicable N/A
Amount of investment in 2022 (RMB) Amount of investment in 2021 (RMB) Y/Y % change
2,880,000.00 43,523,517.70 -93.38%
2. Major equity investments acquired during the Reporting Period
Applicable N/A
3. Major non-equity investments that have not yet been completed in the Reporting Period
Applicable N/A
4. Investment in financial assets
(1) Securities investment
Applicable N/A
The Company had no securities investment during the Reporting Period.
(2) Derivative investment
Applicable N/A
The Company had no derivative investment during the Reporting Period.
5. Use of offering proceeds
Applicable N/A
(1) Description of use of offering proceeds
Applicable N/A
In RMB 0’000
27
Mango Excellent Media Co., Ltd. Annual Report 2022
Total
amount Total
Aggregat
Total of Percentag amount
e amount
amount Aggregat offering e of Purpose of
of
of e amount proceeds offering Total and offering
Metho offering
Year of Total offering of the proceeds amount of whereabou proceeds
d of proceeds
offerin offering proceeds offering purpose the unused ts of that has
offerin the
g proceeds used in proceeds of which purpose offering unused remaine
g purpose
the already was of which proceeds offering d unused
of which
Reportin used changed has been proceeds for more
has been
g Period in the changed than two
changed
Reportin years
g Period
Deposited
in the
special
account of
Private offering
share 198,270.0 108,219.4 proceeds 90,050.6
2019 9,392 0 0 0.00% 90,050.62
offerin 7 5 and used 2
g for the
purchase of
cash
manageme
nt products
Deposited
in the
Share special
offerin account of
g to offering
448,579.2 71,997.0 180,724.7 267,854.4
2021 specifi 0 0 0.00% proceeds, 0
1 8 3 8
c and
person purchase
s cash
manageme
nt products
646,849.2 81,389.0 288,944.1 90,050.6
Total -- 0 0 0.00% 357,905.1 --
8 8 8 2
Description of use of offering proceeds
During the Reporting Period, the total amount of offering proceeds used by us was RMB813,890,800. As of December 31, 2022, the
aggregate amount of offering proceeds used by us was RMB2,889,441,800. The balance of the special account of offering proceeds
was RMB1,625,457,400, including RMB1,435,245,500 of principal and RMB190,211,900 of interest income. We have used
RMB1,775,000,000 of unused offering proceeds to purchase cash management products.
(2) Committed fund-raising investment projects
Applicable □N/A
In RMB 0’000
Whet Aggreg Whethe
Progress
her ate r
of Date Aggreg Wheth
the amount there’s
Total Amoun investm that ate er the
Committed projec Total already Income any
investm t ent as of the income project
investment t has committ invested earned signific
ent investe the end projec as of the has
project and been ed as of the in the ant
amount d in the of the t is end of produc
use of chang investm end of Reporti change
as Reporti Reporti ready the ed the
over-raised ed or ent the ng in the
adjusted ng ng for its Reporti desire
funds partial amount Reporti Period feasibil
(1) Period Period intend ng d
ly ng ity of
(3) ed use Period result
chang Period the
=(2)/(1)
ed (2) project
Committed investment project
Mango TV
copyright 11,344. 28,460.
No 148,674 148,674 9,392 95,542 64.26% N/A No
pool 3 29
expansion
28
Mango Excellent Media Co., Ltd. Annual Report 2022
project
Mango TV
cloud
storage and
multi- 12,677. 25.58% Note 2
No 49,558 49,558 Note 1 N/A No
screen 45
broadcast
platform
project
Content
resource
398,587 398,587 66,790. 175,518 69,867. 178,720
pool No 44.04% N/A No
.78 .78 71 .36 51 .81
expansion
project
Mango TV
smart audio
& video
49,991. 49,991. 5,206.3 5,206.3 Note 3
media No 10.41% N/A No
43 43 7 7
service
platform
project
646,811 646,811 81,389. 288,944 81,211. 207,181
Subtotal -- -- -- -- --
.21 .21 08 .18 81 .1
Use of over-raised funds
None
646,811 646,811 81,389. 288,944 81,211. 207,181
Total -- -- -- -- --
.21 .21 08 .18 81 .1
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 offering proceeds. During the procedure of implementation, the
market and technical environment of the industry also changed to certain degree. 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 between the fund use progress and original use plan in the reporting period. The fund use plan in respect
Explain the of Mango TV cloud storage and multi-screen broadcast platform project was adjusted pursuant to the Proposal for
situation Adjusting the Fund Use Plan in Respect of Certain Fund-raising Investment Project adopted by the 29th session of
and reason the 3rd Board of Directors of the Company on April 23, 2020, and further adjusted pursuant to the Proposal for
for failure Adjusting the Fund Use Plan in Respect of Certain Fund-raising Investment Project adopted by the 35th session of
to achieve the 3rd Board of Directors on January 26, 2021.
the planned
progress Mango TV smart audio & video media service platform project: The planning of the project was completed in
and desired 2020, the fundraising of the project was completed in 2021, the project was officially implemented in 2022, and the
result by construction of the project is planned to complete in 2023. During the implementation of the project, certain
item changes have taken place in both the external market and the technical environment: On the one hand, due to the
(including impact of travel conditions in 2022, there was a certain lag in business negotiation, contract signing and other
the reason procedures required for the procurement of software and hardware in this project; meanwhile, the frequency of
for offline communication and field follow-up projects of the R&D team has decreased, which, to some extent, has
choosing affected the progress of project construction. On the other hand, in the background of reducing costs and increasing
“N/A” for efficiency, Mango TV has suspended the development of heavy-asset projects after multiple reviews of project
“Whether implementation and R&D focuses; it has prioritized the development of light-asset projects, mainly with human
the project resources and a small quantity of software and hardware. With the transfer and adjustment of R&D resources and
has strategies, the overall implementation progress of the project has certain changes. According to evaluation, it is
produced expected that the project needs to be postponed for one year on the basis of the original project construction
the desired schedule; to be specific, all construction contents under the project plan will be completed by the end of 2024. The
result”) Company held the 15th session of the 4th Board of Directors of the Company on April 20, 2023, reviewing and
adopting the Proposal for Adjusting the Fund Use Plan in Respect of Fund Raised for Mango TV Smart Audio &
Video Media Service Platform Project, to adjust the fund use plan of the Mango TV smart audio & video media
service platform project. The Company’s independent directors and the board of supervisors expressed their
consent to the above proposal, and the sponsor issued a verification opinion.
Reason of
significant
change in None
the
feasibility
29
Mango Excellent Media Co., Ltd. Annual Report 2022
of the
project
Amount
and use of
over-raised N/A
funds and
progress of
use thereof
Change in
the place of
the fund- N/A
raising
investment
project
Adjustment
of the
method of
implementa
tion of the Applicable
fund-
raising
investment
project
Occurred in previous years
Mango TV copyright pool expansion project: As of December 31, 2020, we purchased and released on Hunan TV
5 key TV series as scheduled. The progress of investment and development 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, the Company
held the 7th session of the 4th Board of Directors, considering and approving the Proposal for Adjusting the
Method of Implementation and Fund Use Plan in Respect of Certain Fund-raising Investment Project, pursuant to
which the method of implementation and fund use plan in respect of the Mango TV copyright pool expansion
project were adjusted. The Company’s independent directors and board of supervisors expressed their consent to
the above proposal, and the independent financial consultant issued a verification opinion. On December 21, 2021,
the above proposal was reviewed and approved at the Company’s 2nd extraordinary general meeting of
shareholders in 2021. The remaining offering proceeds were used to purchase exclusive Internet copyright of
teleplays.
Applicable
On August 25, 2020, the 31th session of the 3rd Board of Directors considered and adopted the Proposal Regarding
Payment by the Wholly-owned Subsidiary of Funds Invested in the Fund-Raising Investment Project with
Banker’s Acceptance Bills and Replacement of the Same with the Offering Proceeds, approving that Happy
Sunshine, a wholly-owned subsidiary of the Company, may use banker’s acceptance bills as the case may be
during project investment with the fund raised, and replacement of the same with the offering proceeds by
transferring the amount actually paid from the special account of offering proceeds to the account of owned funds
of the Company. The independent directors and the Board of Supervisors of the Company expressed their consent
Funds pre- to the above proposal, and the independent financial consultant issued a verification opinion.
invested in
the On September 23, 2021, the 5th meeting of the 4th Board of Directors considered and adopted the Proposal for
investment Replacing the Self-raised Funds Pre-invested in the Fund-Raising Investment Project and Funds Used to Pay Part
project and of the Offering Costs with the Offering Proceeds, approving the replacement of the funds pre-invested in the
replacemen investment project in the amount of RMB703,945,533.67 and self-raised funds used to pay part of the offering
t thereof costs in the amount of RMB475,471.70 (exclusive of tax) with the offering proceeds . The independent directors
and the Board of Supervisors of the Company approved such proposal, and the sponsor issued a verification
opinion. The Replacement of raised funds pre-invested in the fund-raising investment project was completed as of
December 31, 2021.
On September 23, 2021, the 5th meeting of the 4th Board of Directors and the 4th meeting of the 4th Board of
Supervisors considered and adopted the Proposal Regarding Payment by the Wholly-owned Subsidiary of Funds
Invested in the Fund-Raising Investment Project with Banker’s Acceptance Bills and Replacement of the Same
with the Offering Proceeds, approving the payment by Happy Sunshine, our wholly-owned subsidiary, of amounts
in connection with the fund-raising investment project with banker’s acceptance bills during the period of fund
raising for such investment project through share offering to specific persons in 2020, and replacement of the same
30
Mango Excellent Media Co., Ltd. Annual Report 2022
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. During the Reporting Period, and the sponsor issued a verification opinion.
Temporary
replenishm
ent of
working N/A
capital with
the unused
offering
proceeds
Amount of
unused
offering Applicable
proceeds
and reason
thereof
Mango TV cloud storage and multi-screen broadcast platform project: The project was planned in 2017 and
implemented from 2019 when the supporting funds were raised. The construction of the project was basically
completed in 2021, and the project has reached the expected usable state as planned. On April 21, 2022, Mango
Excellent Media held the 8th session of the 4th Board of Directors, reviewing and adopting the Proposal on the
Closing of Mango TV Cloud Storage and Multi-screen Broadcast Platform Project and Permanent Supplementation
of Working Capital through with Remaining Raised Funds. The independent directors and the Board of Supervisors
expressed their independent consent. On May 19, 2022, the Company held the 2021 annual general meeting of
shareholders, reviewing and adopting the above proposal. As of December 31, 2022, the special fund-raising
account of the Mango TV cloud storage and multi-screen broadcast platform project has been canceled, and the
remaining raised funds of RMB390,599,900 (including interest) has been transferred out to permanently
supplementing the working capital. The reason for the balance is that the fundraising plan of the project was
mainly based on investments in hardware platforms, mainly including the procurement of node servers, switches,
storage servers and other equipment. During the project construction, cloud computing technology developed
rapidly, and the Company also actively grasped the opportunity brought about by the technological innovation by
purchasing commercial CDNs and cloud resources to replace the original hardware procurement plan, which,
without affecting the implementation of the project, effectively reduced the project cost and enhanced the resource
utilization efficiency of the Company. Besides, the Company has strengthened its independent innovation
capabilities, increased expenses for personnel, increased self-research efforts, insisted on nationalization and self-
development, replaced procurement with self-research, increase the number of R&D team members from 287 to
558, and had 70 patents from the project. For this project, in addition to the investment with raised funds, the
Company also spent around RMB164,599,300 with its own funds in R&D personnel, commercial CDNs, cloud
resources, etc.
Purpose
and As of the end of the Reporting Period, we used RMB1.775 billion of unused offering proceeds to purchase cash
whereabout management products, and deposited the balance of the unused offering proceeds in the special account of offering
s of unused proceeds.
offering
proceeds
Problems
or other
matters
existing in None
the use and
disclosure
of offering
proceeds
Note 1: The project has been concluded.
Note 2: The project aims at fully improving users’ experience of watching across the platform, no economic benefits will be yielded
directly, so it is impossible to calculate the benefits of such project separately.
Note 3: This project aims at improving overall platform-level solutions in ultra HD video, interactive video and re-consumable video
in the future, accelerating integration of Mango TV in aspects of resources, technology, services, business and flow, and no economic
benefits will be yielded directly, so it is impossible to calculate the benefits of such project separately.
(3) Changes in the fund-raising investment projects
31
Mango Excellent Media Co., Ltd. Annual Report 2022
□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
32
Mango Excellent Media Co., Ltd. Annual Report 2022
Net profit
contributed by Whether the
such equities Ratio of the transaction
to the Listed net profit has been
Whether
Company contributed Whether or completed as
such
Transaction from the Effect of the by the sale not a Affiliation scheduled,
Equities Date of Pricing equities Date of Disclosure
Counterparty price beginning date sale on the of equities to related- with the and if not,
sold transaction principle have been disclosure reference
(RMB0’000) of the Company the Listed party counterparty the reason
fully
reporting Company to transaction and the
transferred
report to the its total net actions taken
date of profit by the
transaction Company
(RMB0’000)
It has
enhanced the
financial
strength of Announcement on
Xiaomang the Completion of
Electronic Recapitalization
Xiaomang Commerce, and Share Increase
Mango
Electronic May 19, and promoted Appraised Parent June 25, and Related
Media Co., 28,600 -9,214.72 Yes Yes Yes
Commerce 2022 the price company 2022 Transaction by
Ltd.
Co., Ltd. collaboration Wholly-owned
between Subsidiary
Xiaomang disclosed on
Electronic www.cninfo.com.cn
Commerce and
the Mango
ecosystem
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
242,470,013.
Sunshine business and content operation 26,953,351,270.92 16,883,899,853.41 11,965,582,644.18 1,783,083,681.29 1,822,513,283.32
business 00
Happigo Subsidiary Media retail 401,000,000.
966,889,524.27 564,635,153.97 1,493,429,340.05 -18,729,268.46 -17,030,766.95
00
EE-Media Subsidiary Artist agency business, program, 90,000,000.0 789,183,839.05 536,117,059.70 338,731,640.61 44,636,370.32 44,548,627.72
33
Mango Excellent Media Co., Ltd. Annual Report 2022
film and TV drama production 0
business and copyright business
34
Mango Excellent Media Co., Ltd. Annual Report 2022
Subsidiaries acquired or disposed of during the Reporting Period:
Applicable N/A
Particulars of major subsidiaries and associates:
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 of 2023 is the first year for fully implementing the spirit of the 20th National Congress of CPC and also a crucial
year for implementing the 14th Five-Year Plan. Let us brave wind and rain and forge ahead against all odds. As guided by Xi
Jinping’s Thought on Socialism with Chinese Characteristics for a New Era, we unswervingly publicize and implement the spirit
of the 20th National Congress of CPC, maintain firm strategic resolve, pursue reform and integrated development, and steer
changes. These efforts will help us to continuously deliver Mango’s high-quality development achievements in a new journey to
build a mainstream new media group with strong influence and competitiveness.
1. Remain true to our original aspiration and keep our mission as a Party media firmly
We will adhere to the leadership of the Party with utter loyalty. We will stick to the right political direction, tone in public
communication and value orientation, and actively perform our mission of “focusing on upholding socialism with Chinese
characteristics, rallying public support, fostering a new generation of young people, developing Chinese culture, and better
presenting China to the world”. We will resolutely occupy the mainstream propaganda front, enhance the construction of Mango
TV’s headline project and homepage, and make theme planning around important time nodes such as the 130th anniversary of
Comrade Mao Zedong’s birth, the 45th anniversary of Reform and Opening up, and the 70th anniversary of the victory of the War
to Resist US Aggression and Aid Korea. For example, we will make greater efforts to deliver high-quality works such as
“Navigating to the Future” and “China S3”, effectively lay out key dramas such as “City of Sunlight” and “Polluted Rivers”, and
create “people-centered” masterpieces, so as to ensure that the underlying values hold greater appeal than ever before, and the
wave of positive energy felt throughout society is building. Meanwhile, we will continue to explore how to tell China’s stories
well and make the voice of China heard on the world stage, and develop Mango TV International App into a more influential
communication benchmark platform around the world.
2. Sail into the future through in-depth integration and embark on a new journey to pursue the integrated media development
2023 is a critical year for us to promote the in-depth integrated development of media. We will continue to fully implement
the strategic plans of the Party Central Committee on accelerating the in-depth integrated development of media. Subject to the
provisions of Compliant Operation of the Listed Companies and market-oriented principles, we will utilize the advantages of the
two platform of Mango ecosystem and advance the media integration to develop in depth and breadth with innovations in value,
mechanism, content and business cooperation. With these efforts, we will create the all-media communication ecosystem with the
guiding role. What’s more, we will continue to explore unique, effective and sustainable mechanisms, paths and methods of in-
depth integration, realize the self-evolution and iteration of media integration in a Mango model, and stimulate more industrial
vitality and momentum, and make every effort to achieve the rapid development of high-quality integrated development of double
platforms.
3. Insist on innovation and continue to consolidate and expand content brand advantages
35
Mango Excellent Media Co., Ltd. Annual Report 2022
The report to the 20th National Congress of CPC points out that we will encourage people-centered cultural creation and
production of more outstanding works that inspire the people. In the future, we will continue to pursue the values guiding role of
media and innovation in proprietary content, make better use of the content supply advantages of media’s integrated development,
and consolidate development advantages with content advantages. With respect to variety shows, we will insist on self-
breakthrough, remove reliance on channels, release a number of key projects such as “Youth π Plan”, “Infinity and Beyond 2023”,
“Run for Time” and “Sisters Who Make Waves 2023”, and maintain over 40% of innovative programs to preserve our leading
position in variety shows. With respect to films and TV dramas, in reliance on our film and TV drama production teams and
strategic studios, we will accelerate the self-production of dramas, and strengthen the whole process management. Key films and
TV dramas such as “Fireworks of My Heart”, “Young Blood S2” and “As All The Stars Shine” will be released.
4. Accumulate momentum to make progress while ensuring stability in all businesses
The 20th National Congress of CPC, the Central Economic Work Conference and the Two Sessions have been held
successively. We see that the Chinese modernization is speeding up and various policies have gained notable effects. For the
various major business divisions, detailed plans have been worked out and the momentum for development is building. We will
pool resources to grasp new strategic opportunities for business development. With respect to the advertising division, we will
integrate the advantageous resources of double platforms, determine the budget of core customers, and fully explore non-core
resources, non-prime times and non-key projects. With respect to the membership division, in conjunction with leading IPs, we
will implement the strategies for full-scene marketing, customized content and differentiated membership, deepen cooperation
with leading enterprises in the consumer electronics industry, and expand diversified channels with joint rights and interests. With
respect to the large screen division, we will maintain the business cooperation scale with strategic partners, and fully launch
Mango Card, Mango Big TV membership and other ecological products. Artist agency and music copyright business will
accelerate the integration with Mango ecosystem around core platforms to stimulate the internal momentum for business
integration.
5. Pursue rapid development while ensuring stability and fully stimulate the development vitality of new business modes
In 2023, we will continue to invest more resources in strategic emerging businesses. Xiaomang e-commerce will still be
designed as “a content e-commerce platform focusing on home-made new fashions”. In reliance on high-quality content IPs and
artist resources within Mango ecosystem and on double platforms, Xiaomang e-commerce will devote great energy to creating hot
products, establishing a replicable growth mechanism for hot products, and exploring home-made product partners; highlight the
characteristics of products, and empower the content of products of new types and new concepts with the help of IPs and artist
attributes; improve liquidity, utilize the IP value and the capacity to sell goods in content scenarios in a long term, lead the trend of
women fashion based on the Mango core user group, and strive to be one of the most commercially valuable platforms of Hunan
Broadcasting System. Based on a new positioning, Happigo e-commerce will focus on the differentiated market, and form
complementarity with Xiaomang e-commerce.
6. Continue to consolidate the foundations of high-quality development governance
We will keep improving the level of compliant operation through our multi-level and multi-dimensional corporate governance.
First, we will continue to strengthen the construction of the corporate governance system and enhance the governance capacity and
internal control level in accordance with the latest regulatory policy system and on the basis of the actual situation of the Company;
second, we will continue to improve the information disclosure system in response to consumers’ demands, and fully disclose the
information necessary for value judgments and investment decisions by investors; third, we will define the main responsibility of
the “key minority”, continuously improve the development quality of the Listed Company and create higher corporate value;
fourth, we will establish a sound communication mechanism for investors and a smooth channel and way for investors to
36
Mango Excellent Media Co., Ltd. Annual Report 2022
participate in corporate governance, and continuously optimize the mechanism of returns to investors; fifth, we will enhance ESG
governance and make ESG governance become an important tool of high-quality development.
7. Move with the times and actively seek the content production patterns by using technologies
In 2023, we will devote great energy to taking AIGC and virtual-real interaction as the main direction of product technology
innovation. On the one hand, we will explore the multi-touch combination of AIGC technology stack and media business scenarios,
and focus on creating new AIGC infrastructures covering script creation, audio and video content production, new search
recommendation and other businesses. On the other hand, we will create virtual interactive spaces based on the content production
demand of key IPs in virtual human, virtual interaction, virtual space and other areas, so as to realize new content interactive
experiences such as content classic episodes, user online case detection and deduction, and variety co-creation interaction. In the
future, we will continue to explore the innovation in the media product forms, technology applications and business modes for
metaverse and AIGC.
8. Vigorously implement the strategy on strengthening the enterprise through youth talent
Xi Jinping, the General Secretary, pointed out in 2023 New Address that a nation will prosper only when its young people
thrive, and for China to develop further, our young people must step forward and take on their responsibilities. In the future, we
will attach greater importance to, value and foster young people. To be specific, we will enable more post-90s and post-00s to take
up producer, management and core business positions through a series of talent training projects, including “Mango Youth Talk”,
“Qingmang Internship Program”, “Young CEO Club” and “36 Young Talents Action”. Our aim is to create a new talent team
compatible with the development of a mainstream new media group. Further, we will make sure that core resources will be tilted
toward young people and the business department, accelerate team restructuring and iterations, cultivate more young teams in
practices, and incubate more innovative projects.
(II) Potential risks and countermeasures
1. Risks of impact of economic cycles
The advertising budget of business customers and consumption preference of end users of our Internet video business are
closely related to the macroeconomic cycles. In recent years, China’s economy has maintained medium-to-high speed of
development, and Internet media industry has realized rapid growth. However, given the economic cycles, our business
development may still be affected to a certain extent. To this end, we will fully make foresight and planning and continuously
consolidate our core competitiveness in terms of content, products, talents and technologies to effectively cope with the impact of
economic cycles.
2. Risk of changes in industrial policies
We pertain to the cultural and art industry. The market players shall conduct relevant business in strict accordance with the
industrial regulatory policies and shall obtain broadcast licenses before releasing the films, TV dramas, variety shows. Any change
in industrial regulatory policies will bring uncertainties to our content production and broadcast schedule. As a Party media and
state-owned enterprise, we have head start advantages in policy research, and will adhere to the right political direction, tone in
public communication and value orientation, and create content in strict compliance with requirements of industrial policies.
3. Risks of market competition
The Internet long video industry witnesses fundamental changes in operational thinking and underlying logics and enters a
new stage of rational development in terms of industry competition. Various major video platforms are further strengthening
capabilities of proprietary content production, improving operation efficiency and enhancing profitability. Changes in industrial
competitive situation may have adverse impact on our market shares and profitability. As a state-owned long video platform, we
37
Mango Excellent Media Co., Ltd. Annual Report 2022
will continue to pursue the values guiding role of media and innovation in proprietary content and consolidate development
advantages with content advantages.
4. Risk of business qualifications
Our certain businesses require and maintain special business qualifications. If we are unable to promptly renew or obtain new
business qualifications upon expiration of the relevant existing business qualifications, our business development may be
adversely affected. We will enhance business qualification management, work out a scientific plan for applying for business
qualifications, increase communications with the competent business qualifications authorities to promptly renew business
qualifications upon expiration thereof.
5. Risks of return on investment
The broadcast effect of audiovisual content including films, TV dramas and variety shows is highly uncertain because it is
affected by several factors such as program quality, user preference and public opinion environment. The production of
audiovisual content and the procurement of copyright have the inherent characteristics of huge amount of single investment, long
period of return on investment and non-predictability of market reaction, among others, so the return on investment is greatly
uncertain. As a result, we have firmly controlled content production elements in the whole process, established a comprehensive
appraisal system to focus on the content input-output ratio and minimize investment risks.
6. Risk of technology upgrading
Along with the maturity and application of metaverse, AIGC and other technologies, new business patterns and business
models will bring wholly new cultural and entertainment experience to users. If we fail to keep with the trend of technology
upgrading, the commercial remodeling brought by technology upgrading may have an adverse effect on our operation. We have
established the innovation research institute to enhance researches on new technologies, new models and future trends of the
industry, make judgments and arrangements in advance, and grasp development opportunities brought by technology upgrading.
7. Risk of outflow of talents
The new media business, film and TV drama production, and artist agency business conducted by us have high requirements
for the professional levels of practitioners, so outflow of core personnel could affect the conduct of our business to a certain degree.
We have established an open and innovative incentive mechanism, a unique self-motivation mechanism and a content ecosystem
suitable for creative talents to release their potential, so as to arouse the enthusiasm and creativity of core personnel while retaining
them.
8. Risk of infringement on intellectual property rights
Our main business involves the use of copyright of audiovisual programs, so the purchased copyright may have defects and
infringe on the interests of legal right holders. Meanwhile, there exist infringements on copyright of the programs to which we
have legal rights and interests. Therefore, we have established a copyright procurement management system, regulated the
procurement process, conducted strict examination of copyright supporting documents, and specified relevant rights and
obligations as well as liability for breach of contract; and intensified efforts to safeguard our intellectual property rights against
copyright infringements.
XII. Investigation, research, communication, interview and other activities during the
Reporting Period
Applicable N/A
Method of Main topic of Particulars of
Date Place Type of guests Guests
communication discussion and the
38
Mango Excellent Media Co., Ltd. Annual Report 2022
information investigation
provided and research
activity
available at
Refer to the
Refer to our
Record of
Record of
Investor
Investor
Relations
Communication Our business Relations
April 25, 2022 Teleconference Institutions Activities of
by telephone situations Activities
Mango
disclosed on
Excellent
www.cninfo.co
Media Co., Ltd.
m.cn
(2022-01)
Refer to the
Refer to our
Record of
Record of
Investor
Investor
Relations
August 18, Communication Our business Relations
Teleconference Institutions Activities of
2022 by telephone situations Activities
Mango
disclosed on
Excellent
www.cninfo.co
Media Co., Ltd.
m.cn
(2022-02)
39
Mango Excellent Media Co., Ltd. Annual Report 2022
Section IV Corporate Governance
I. Overview of our corporate governance
During the Reporting Period, we have continuously improved our corporate governance structure, internal management and
control policies, promoted compliant operations and raised the governance level in strict accordance with the requirements of the
Company Law, the Securities Law, the Code of Corporate Governance for Listed Companies, the Rules Governing the Listing of
Stocks on the ChiNext Board of the Shenzhen Stock Exchange, the Guide on Self-regulatory Supervision for Companies Listed on
the Shenzhen Stock Exchange No. 2 – Compliant Operations of Listed Companies on the ChiNext Board, and other applicable
laws, regulations and normative documents. As of the end of the Reporting Period, our corporate governance complies with the
applicable laws, administrative regulations and the provisions of the CSRC regarding corporate governance of the listed
companies.
1. Shareholders and the general meeting of shareholders
We convened and held general meetings of shareholders in strict accordance with our Articles of Association and the Rules of
Procedure of the General Meeting of Shareholders and treated all shareholders fairly. We permitted investors to elect to vote in
person or on line at our shareholders’ meetings, so as to enable minority investors to fully exercise their voting rights. In
considering material matters that affect the interests of minority investors, the votes cast by them were counted separately and
disclosed on the relevant announcements on the resolutions of our shareholders’ meeting.
2. Relationship with the controlling shareholder
Our controlling shareholder exercised its rights as a contributor to the Company in accordance with law and did not directly
or indirectly interfere with the decision-making and business activities of the Company without the authorization of the general
meeting of shareholders. We conduct business and operate independently, and are independent of our controlling shareholder in
business, personnel, assets, organization and finance.
3. Directors and the Board of Directors
Our Board of Directors has 9 directors, including 3 independent directors. The number of members and composition of our
Board of Directors comply with the requirements of the applicable laws and regulations and our Articles of Association. The
procedures for convening and holding the meetings of the Board of Directors, voting procedures and resolutions comply with the
relevant provisions of the laws, regulations, Articles of Association and the Rules of Procedure of the Board of Directors. All
directors exercise their functions and perform their duties and obligations with good faith and diligently and in accordance with the
provisions of the Guide on Self-regulatory Supervision for Companies Listed on the Shenzhen Stock Exchange No. 2 – Compliant
Operations of Listed Companies on the ChiNext Board.
4. Supervisors and the Board of Supervisors
The Board of Supervisors of the Company consists of 3 supervisors, including 1 employee supervisor. The number of
members and composition of the Board of Supervisors are in compliance with the requirements of relevant laws and regulations.
During the Reporting Period, our supervisors seriously performed their duties, and actively supervised our material matters,
related-party transactions, insiders, internal controls and financial condition and performance of duties by our directors and
executives in compliance with the applicable laws and regulations, pursuant to the Rules of Procedure of the Board of Supervisors.
5. Establishment and implementation of internal audit policy
Our Board of Directors has set up the Audit Committee, responsible for communications, supervision, meeting organization
and examinations in respect of internal and external audits. The Audit Department under the Audit Committee is responsible for
handling day-to-day affairs, and examination and supervision of the establishment and implementation of internal controls,
truthfulness and completeness of financial information of the Company.
6. Performance appraisal and incentive and restraint mechanisms
40
Mango Excellent Media Co., Ltd. Annual Report 2022
Our Board of Directors has set up the Compensation and Appraisal Committee, responsible for the establishment of
compensation policies, determination of compensation plans, and performance appraisal of executives. We have established
scientific performance appraisal standards and procedures for executives, and the executives are engaged in strict accordance with
the relevant provisions of the Companies Law and the Articles of Association.
7. Stakeholders
We fully respect the legitimate rights and interests of stakeholders, and strive to coordinate and balance the interests of
shareholders, employees, partners, the society and other stakeholders, and jointly promote our high-quality development, the
details of which are shown in the 2022 ESG Report and Social Responsibility Report disclosed on www.cninfo.com.cn on the
same day.
8. Information disclosure and transparency
We have established the relevant systems on information disclosure management, made the secretary of the Board of
Directors be responsible for the information disclosure of the Company, and designated www.cninfo.com.cn, the China Securities
Journal, the Shanghai Securities News, the Securities Times and the Securities Daily as the websites and newspapers for us to
disclose information. During the Reporting Period, we performed the obligations of information disclosure in strict accordance
with the requirements of the CSRC and the Shenzhen Stock Exchange and ensured that all shareholders have equal opportunities
to access the information about us.
We have established the office of the Board of Directors in charge of investor relations management in strict compliance with
the Work Guidelines for the Investor Relations Management of Listed Companies and the relevant systems on investor relations
management and is dedicated to enabling investors to equally access the business management, future development and other
information on us in a better manner. We actively replied to important problems that employees care about through the investor
“interaction” platform, investor consultation telephone, public email and other diversified communication channels, as well as
through performance briefings convened on a periodic basis and receiving investigations by investors from time to time.
During the Reporting Period, we were awarded A, the highest level, in the annual assessment by the Shenzhen Stock
Exchange of information disclosure of the listed companies in the fourth consecutive year, and awarded the “2022 5A Rating for
Performance Evaluation of Board Secretaries of Listed Companies” and the “2022 Best Practice Cases of Directors’ Office of
Listed Companies” of China Association for Public Companies.
Is there any significant difference between the actual circumstance of corporate governance of the Company and the applicable
laws, administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies?
Yes No
There is no significant difference between the actual circumstance of our corporate governance and the applicable laws,
administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies.
II. The Company’s independence of its controlling shareholder and actual controller in
assets, personnel, finance, organization and business
We are independent of our controlling shareholder and actual controller in assets, personnel, finance, organization and
business. The Company’s assets are complete and free from any encumbrance, and we have independent purchasing, production
and sales systems and supporting facilities; we have an independent human resources department; we have an independent finance
department, and have established independent financial and accounting system and formulated financial management policies; we
have set up internal bodies that are suitable for our development requirements and operate independently; we are an independent
corporate entity, and conduct business and operate independently. None of our controlling shareholder, actual controller or their
affiliates have illegally occupied our funds or requested us to provide any guarantee in violation of the applicable laws and
regulations.
41
Mango Excellent Media Co., Ltd. Annual Report 2022
III. Horizontal competition
Applicable N/A
Type of related
party
Type of Company Progress and
relationship Company name Reasons Solutions
problems nature subsequent plans
with the Listed
Company
Regulated by In accordance with
Controlling
Coexistence HTBI SASAC local relevant notices and
Shareholder
counterparts replied approvals
issued by the
General Office of
the CPC Hunan
Provincial
Committee, the
General Office of GBS has issued
the People’s written
Government of commitment on
Hunan Province and matters related
the Special Panel for to horizontal
Reform of Hunan competition GBS has issued written
Provincial Cultural with the Listed commitment on
System from 2018, Company matters related to
the CPC Hunan during the horizontal competition
Provincial application with the Listed
Committee and the process of the Company during the
People’s Company’s application process of
Government of 2020 non-public the Company’s 2020
Hunan Province offering and of non-public offering
proposed to free transfer by and of free transfer by
reorganize the CPC the Company’s the Company’s
Regulated by Committee of controlling controlling shareholder
Controlling Xiaoxiang Film
Coexistence SASAC local Golden Eagle shareholder of of the state-owned
Shareholder Group
counterparts Broadcasting the state-owned shares, which clearly
System Co., Ltd. to shares, which describes the plan and
universally lead clearly schedule for solving
GBS, Xiaoxiang describes the the horizontal
Film Group and plan and competition, with
HBNHG. It was schedule for details referring to
agreed that solving the Section VI “I.
Xiaoxiang Film horizontal Performance of
Group and HBNHG competition, commitments”.
were merged into with details
GBS to be its referring to
wholly-owned Section VI “I.
subsidiaries, and all Performance of
institutional assets commitments”.
owned by Hunan
Broadcasting
System were
divested and
transferred to GBS,
so that the
management system
of “two institutions
42
Mango Excellent Media Co., Ltd. Annual Report 2022
under the leadership
of one CPC
committee operating
integratedly” can be
realized, and GBS
can further develop.
After the integration
of GBS, Xiaoxiang
Film Group (film
and television
content production
business) and HTBI
(game business)
under HBNHG have
similar businesses
with the Listed
Company.
IV. Annual and extraordinary general meetings of shareholders held during the Reporting
Period
1. General meetings of shareholders held during the Reporting Period
Percentage of
Resolution of the
Session Type of meeting investors attending Date of meeting Disclosure date
meeting
the meeting
Refer to the
Announcement on
Resolutions of the
Annual general
Annual general 2021 Annual
meeting of
meeting of 78.27% May 19, 2022 May 20, 2022 General Meeting of
shareholders in
shareholders Shareholders (No.:
2021
2022-027) disclosed
on
www.cninfo.com.cn.
Refer to the
Announcement on
Resolutions of the
1st extraordinary
Extraordinary First Extraordinary
general meeting of December 27, December 28,
general meeting of 65.37% General Meeting of
shareholders in 2022 2022
shareholders Shareholders in 2022
2022
(No. 2022-053)
disclosed on
www.cninfo.com.cn.
2. Extraordinary general meetings of shareholders convened at the request of preferred shareholders
with resumed voting rights
Applicable N/A
V. Arrangement for differential voting rights
Applicable N/A
43
Mango Excellent Media Co., Ltd. Annual Report 2022
VI. Corporate governance of red-chip structured companies
Applicable N/A
VII. Directors, supervisors and executives
1. Particulars
44
Mango Excellent Media Co., Ltd. Annual Report 2022
Changes in Cause of
Beginning End date No. of additional
Opening No. of shares the number of Closing increase or
date of the of the shares acquired in
Name Title Status Gender Age balance of disposed of in the shares held balance of decrease in
term of term of the Reporting
shares held Reporting Period due to other shares held the number of
office office Period
reasons shares held
January 31,
CAI Chairman
Current Male 46 2023
Huaijun
September
Director
12, 2018
ZHONG Independent June 14,
Current Male 48
Hongming Director 2017
Independent January 8,
XIAO Xing Current Female 52
Director 2019
Independent January 8,
LIU Yuhui Current Male 53
Director 2019
February 21,
YANG Yun Director Current Male 50 1,500 1,500
2023
SONG February 21,
Director Current Male 54
Zichao 2023
LIANG February 21,
Director Current Male 44
Deping 2023
General January 31,
Manager 2023
September
LIU Xin Director Current Male 52
19, 2019
May 19,
PENG Jian Director Current Male 51
2022
Chairman of
February 27,
FANG Fei the Board of Current Male 38
2023
Supervisors
February 21,
FANG Fei Supervisor Current Male 38
2023
ZHANG February 21,
Supervisor Current Male 51
Shangbin 2023
XIE Employee September 7,
Current Male 38
Shaoqiang Supervisor 2022
Deputy
ZHENG August 16,
General Current Male 47
Huaping 2018
Manager
45
Mango Excellent Media Co., Ltd. Annual Report 2022
Deputy
January 31,
ZHOU Hai General Current Male 47
2023
Manager
Deputy
General
ZHANG
Manager & Current Male 46 July 4, 2022
Zhihong
Finance
Director
Deputy
SHEN
General Current Male 43 July 4, 2022
Yadong
Manager
Deputy
LUO Zejun General Current Male 52 July 4, 2022
Manager
Deputy
General July 4, 2022
WU Jun Current Female 40
Manager
Board April 27,
Secretary 2019
ZHANG Chairman November January
Retired Male 59
Huali and Director 16, 2017 31, 2023
LUO September January
Director Retired Male 61
Weixiong 19, 2019 31, 2023
ZHANG November January
Director Retired Male 61
Yong 25, 2011 31, 2023
TANG April 22,
Director Retired Male 47 June 1, 2014
Liang 2022
Chairman of
the Board of
June 14, February
YANG Yun Supervisors Retired Male 50
2017 21, 2023
and
Supervisor
June 14, February
LI Jiaochun Supervisor Retired Male 59
2017 21, 2023
Employee August 18, September
FANG Fei Retired Male 38
Supervisor 2020 7, 2022
CAI General August 16, January
Retired Male 46
Huaijun Manager 2018 31, 2023
LIANG Deputy Retired Male 44 August 16, July 4,
46
Mango Excellent Media Co., Ltd. Annual Report 2022
Deping General 2018 2022
Manager &
Finance
Director
Executive
LIANG Deputy January
Retired Male 44 July 4, 2022
Deping General 31, 2023
Manager
Total -- -- -- -- -- -- 1,500 0 0 0 1,500 --
47
Mango Excellent Media Co., Ltd. Annual Report 2022
Whether any director or supervisor retired or any executive was removed during the Reporting Period?
Yes No
On April 22, 2022, Mr. TANG Liang resigned from the position as the director and the relevant position of the special committee
of the Company due to transfer to a different job.
On July 4, 2022, upon deliberation and approval at the 9th meeting of the 4th Board of Directors of the Company, Mr. LIANG
Deping worked as the executive deputy general manager of the Company and ceased to work as the deputy general manager and
Finance Director.
On September 7, 2022, Mr. FANG Fei ceased to work as the employee supervisor due to work adjustment, and Mr. XIE
Shaoqiang was elected as the new employee supervisor by the trade union of the Company.
On January 31, 2023, Mr. ZHANG Huali resigned from the Chairman, director, and the member of the Strategy Committee of the
Company due to work adjustment, and Mr. LUO Weixiong and Mr. ZHANG Yong resigned from the director and the relevant
position of the special committee because they have reached the statutory retirement age.
On January 31, 2023, upon deliberation and approval at the 14th meeting of the 4th Board of Directors of the Company, the
director Mr. CAI Huaijun worked as the Chairman of the 4th Board of Directors and ceased to work as the general manager of the
Company.
On January 31, 2023, upon deliberation and approval at the 14th meeting of the 4th Board of Directors of the Company, Mr.
LIANG Deping worked as the general manager of the Company and ceased to be the executive deputy general manager.
Changes in directors, supervisors and executives
Applicable N/A
Name Title Type Date Reason
Mr. TANG Liang
resigned from the
position as the director
TANG Liang Director Retired April 22, 2022
of the Company due to
transfer to a different
job.
Mr. PENG Jian was
elected as the director
at the Company’s
PENG Jian Director Elected May 19, 2022
annual general meeting
of shareholders in
2021.
Upon deliberation and
approval at the 9th
meeting of the 4th
Board of Directors of
the Company, Mr.
Executive Deputy Appointed and
LIANG Deping July 4, 2022 LIANG Deping
General Manager removed
worked as the
executive deputy
general manager of the
Company and ceased
to work as the deputy
48
Mango Excellent Media Co., Ltd. Annual Report 2022
general manager and
Finance Director.
Upon deliberation and
approval at the 9th
meeting of the 4th
Board of Directors of
Deputy General
SHEN Yadong Engaged July 4, 2022 the Company, Mr.
Manager
SHEN Yadong worked
as the deputy general
manager of the
Company.
Upon deliberation and
approval at the 9th
meeting of the 4th
Board of Directors of
Deputy General
LUO Zejun Engaged July 4, 2022 the Company, Mr.
Manager
LUO Zejun worked as
the deputy general
manager of the
Company.
Upon deliberation and
approval at the 9th
meeting of the 4th
Board of Directors of
Deputy General
the Company, Mr.
ZHANG Zhihong Manager and Finance Engaged July 4, 2022
ZHANG Zhihong
Director
worked as the deputy
general manager and
Finance Director of the
Company
Upon deliberation and
approval at the 9th
meeting of the 4th
Board of Directors of
Deputy General
WU Jun Engaged July 4, 2022 the Company, Mr. WU
Manager
Jun was engaged by the
Company as the deputy
general manager and
the board secretary.
Mr. FANG Fei ceased
to work as the
employee supervisor of
FANG Fei Employee Supervisor Retired September 7, 2022
the 4th Board of
Supervisors due to
work adjustment.
XIE Shaoqiang was
elected by the trade
union of the Company
XIE Shaoqiang Employee Supervisor Elected September 7, 2022 as the new employee
supervisor because of
the original employee
supervisor’s departure.
Mr. ZHANG Huali
resigned from the
ZHANG Huali Chairman Retired January 31, 2023 position as the
Chairman of the 4th
Board of Directors,
49
Mango Excellent Media Co., Ltd. Annual Report 2022
director, and the
member of the Strategy
Committee of the
Company due to work
adjustment.
Upon deliberation and
approval at the 14th
meeting of the 4th
Board of Directors of
the Company, the
Appointed and director Mr. CAI
CAI Huaijun Chairman January 31, 2023
removed Huaijun worked as the
Chairman of the 4th
Board of Directors and
ceased to work as the
general manager of the
Company.
Mr. LUO Weixiong
resigned from the
position as the director
of the 4th Board of
LUO Weixiong Director Retired January 31, 2023 Directors and the
member of the special
committee because he
has reached the
retirement age.
Mr. ZHANG Yong
resigned from the
position as the director
of the 4th Board of
ZHANG Yong Director Retired January 31, 2023 Directors and the
member of the special
committee because he
has reached the
retirement age.
Upon deliberation and
approval at the 14th
meeting of the 4th
Board of Directors of
the Company, Mr.
Appointed and LIANG Deping
LIANG Deping General Manager January 31, 2023
removed worked as the general
manager of the
Company and ceased
to work as the
executive deputy
general manager.
Upon deliberation and
approval at the 14th
meeting of the 4th
Board of Directors of
Deputy General
ZHOU Hai Engaged January 31, 2023 the Company, Mr.
Manager
ZHOU Hai was
engaged as the deputy
general manager of the
Company.
Mr. YANG Yun was
YANG Yun Director Elected February 21, 2023
elected as the director
50
Mango Excellent Media Co., Ltd. Annual Report 2022
at the 1st extraordinary
general meeting of
shareholders in 2023.
Mr. SONG Zichao was
elected as the director
SONG Zichao Director Elected February 21, 2023 at the 1st extraordinary
general meeting of
shareholders in 2023.
Mr. LIANG Deping
was elected as the
director at the 1st
LIANG Deping Director Elected February 21, 2023
extraordinary general
meeting of
shareholders in 2023.
Mr. YANG Yun
resigned from the
position as the non-
employee supervisor
and the chairman of the
4th Board of
Chairman of the Board
YANG Yun Retired February 21, 2023 Supervisors due to
of Supervisors
work adjustment,
which will become
effective after a new
supervisor is elected at
the general meeting of
the Company.
Mr. LI Jiaochun
resigned from the
position as the non-
employee supervisor of
the 4th Board of
Supervisors due to
LI Jiaochun Supervisor Retired February 21, 2023
work adjustment,
which will become
effective after a new
supervisor is elected at
the general meeting of
the Company.
Mr. FANG Fei was
elected as the non-
employee supervisor at
FANG Fei Supervisor Retired February 21, 2023
the 1st extraordinary
general meeting of
shareholders in 2023.
Mr. ZHANG Shangbin
was elected as the non-
employee supervisor at
ZHANG Shangbin Supervisor Retired February 21, 2023
the 1st extraordinary
general meeting of
shareholders in 2023.
Upon deliberation and
approval at the 12th
Chairman of the Board meeting of the 4th
FANG Fei Elected February 27, 2023
of Supervisors Board of Supervisors,
Mr. FANG Fei worked
as the Chairman of the
51
Mango Excellent Media Co., Ltd. Annual Report 2022
4th Board of
Supervisors.
2. Positions held
Professional background and main work experience of our current directors, supervisors and executives and main positions held by
them in the Company:
Directors of the Company:
CAI Huaijun, male, born in December 1977, member of the Communist Party of China, holds a doctor’s degree in
management; former director, General Manager and Chief Editor of Mango Excellent Media Co., Ltd., Secretary of the Party
Committee, executive director and General Manager of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and
Chairman of Xiaomang Electronic Commerce Co., Ltd.; and is now member of the Party Committee and Deputy General Manager
(Vice President) of Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System), Secretary of the Party Committee
of Satellite TV Channel, and Deputy Secretary and Chairman of the Board of Directors in Mango Excellent Media Co., Ltd.
ZHONG Hongming, male, Han nationality, born in January 1975, graduated from the Law School of Renmin University of
China, doctor of laws; is now associate research fellow at the Institute of Law, Sichuan Academy of Social Sciences, member of
the Executive Council of the China Commercial Law Society, member of the Executive Council of the China Securities Law
Society, and independent director of FIYTA Precision Technology Co., Ltd. and Chengdu Shengbang Seals Co., Ltd.; and has
been our independent director since June 2017.
XIAO Xing, female, born in March 1971, member of the Communist Party of China, graduated from the Tsinghua
University, PhD in accounting; joined the School of Economics and Management of Tsinghua University in 1997, successively
acted as teaching assistant, lecturer, associate professor, tenured associate professor and tenured professor there; and is now
professor and chief of the Department of Accounting of the School of Economics and Management, Tsinghua University, and
Director of the Institute for Global Private Equity, Tsinghua University, member of the National Accounting Professional Master
Education Steering Committee, member of the Accounting Teaching Steering Committee of the Ministry of Education, and
independent director of Li Auto; 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; Head of the Key Financing Laboratory, the Institute of Finance, the
Chinese Academy of Social Sciences from August 2003 to April 2017; joined the Institute of Economics, the Chinese Academy of
Social Sciences as a research fellow in April 2017; and 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.
YANG Yun, male, born in July 1973, member of the Communist Party of China, holds an MBA degree, accountant; former
Deputy Director of the Entertainment Channel of Hunan Broadcasting System, member of the Party Committee and Deputy
General Manager of Mango Media Co., Ltd., Director of the Finance Department of Hunan Broadcasting System, Head of the
Assets and Finance Department of Golden Eagle Broadcasting System Co., Ltd., and the Chairman of the Board of Supervisors in
Mango Excellent Media Co., Ltd.; and is now Assistant General Manager and Head of the Assets and Finance Department of
Golden Eagle Broadcasting System Co., Ltd., Director of the Finance Department of Hunan Broadcasting System, director and
General Manager of Mango Media Co., Ltd., director of Mango Excellent Media Co., Ltd. and Hunan TV & Broadcast
Intermediary Co., Ltd.
SONG Zichao, male, born in August 1969, member of the Communist Party of China, grade-1 director, holds a master’s
degree in arts; former Director of R&D Center, Production Scheduling Center and Advertising Department of Satellite TV channel
and Deputy Director of Satellite TV channel in Hunan Broadcasting System, and Secretary of the Party Committee of TV channel
in Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System); and is now Deputy Secretary of the Party
52
Mango Excellent Media Co., Ltd. Annual Report 2022
Committee and Director of Satellite TV Channel in Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System),
Deputy Secretary of the Party Committee and director of Mango Excellent Media Co., Ltd.
LIANG Deping, male, born in February 1979, member of the Communist Party of China, holds a MBA degree; former
Deputy General Manager and Finance Director, Executive Deputy General Manager of Mango Excellent Media Co., Ltd., member
of the Party Committee, Deputy General Manager and Finance Director of Hunan Happy Sunshine Interactive Entertainment
Media Co., Ltd., and Secretary of the Party Committee and executive director of Happigo Co., Ltd.; and is now member of the
Party Committee, director and General Manager of Mango Excellent Media Co., Ltd., Secretary of the Party Committee, executive
director and General Manager of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., director of Xiaomang
Electronic Commerce Co., Ltd., and member of the Party Committee of Satellite TV Channel in Golden Eagle Broadcasting
System Co., Ltd. (Hunan Broadcasting System).
LIU Xin, male, born in October 1971, member of the Communist Party of China, PhD; former Deputy General Manager and
General Manager of the Data Department of China Mobile; is now Secretary of the Party Committee, Chairman and General
Manager of Migu Culture Technology Co., Ltd., and director of iFlyTek Co., Ltd.; and our director since September 2019.
PENG Jian, male, born in November 1972, member of the Communist Party of China, undergraduate; former Deputy
Director of the Division IV of Hunan Commissioner Office of the Ministry of Finance, full-time Deputy Secretary of the Party
Committee of Hunan Commissioner Office of the Ministry of Finance, full-time Deputy Secretary of the Party Committee of
Hunan Regulatory Bureau of the Ministry of Finance and Assistant to the General Manager (temporary) of Hunan Chasing
Financial Holding Group Co., Ltd.; is now Assistant to the General Manager of Hunan Chasing Financial Holding Group Co., Ltd.;
and our director since May 2022.
Supervisors of the Companies:
FANG Fei, male, born in December 1985, member of the Communist Party of China, holds a master’s degree in science;
former General Manager of Advertising & Marketing Center, Assistant to the President and Deputy General Manager of Hunan
Happy Sunshine Interactive Entertainment Media Co., Ltd., and employee supervisor of Mango Excellent Media Co., Ltd.; and is
now Chairman of the Board of Supervisors of Mango Excellent Media Co., Ltd., Deputy Director of Satellite TV Channel in
Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System), member of the Party Committee of Hunan Happy
Sunshine Interactive Entertainment Media Co., Ltd., General Manager of Shanghai Mangofun Technology Co., Ltd. and director
of Xiaomang Electronic Commerce Co., Ltd.
ZHANG Shangbin, male, born in May 1972, member of the Communist Party of China, holds a bachelor’s degree in law;
former Deputy Director of Production and Scheduling Center and Director of Public Affairs Department, Director of
Comprehensive Affairs Department, and Director of HR Department of Satellite TV Channel in Hunan Broadcasting System; and
is now member of the Party Committee, Secretary of Discipline Inspection Committee, and supervisor of Mango Excellent Media
Co., Ltd.
XIE Shaoqiang, male, born in March 1985, member of the Communist Party of China, undergraduate; former General
Manager of Large Membership Center, General Manager of Operator Network Center and General Manager of Smart Large
Screen Center in Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and the General Manager of Xiaomang
Electronic Commerce Co., Ltd.; and is now employee supervisor of Mango Excellent Media Co., Ltd., Deputy Chief Editor and
General Manager of Brand Promotion Center of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd.
Executives (other than those who serve on the Board of Directors concurrently) of the Company:
ZHENG Huaping, male, born in October 1976, member of the Communist Party of China, holds a master’s degree in
philosophy; former Deputy Chief of Mango Media Restructuring and Listing Office, Deputy Director of the Chief Editor Office of
the Hunan Satellite TV Channel, Deputy Director of HBS Program Transaction Management Center, and Chairman and General
Manager of Shanghai Mangofun Technology Co., Ltd.; and is now member of the Party Committee, Chief Editor and Deputy
General Manager of Mango Excellent Media Co., Ltd., member of the Party Committee, Chief Editor and Deputy General
Manager of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., director of Xiaomang Electronic Commerce Co.,
53
Mango Excellent Media Co., Ltd. Annual Report 2022
Ltd., executive director of Mango Studios Culture Co., Ltd., and member of the Party Committee of Satellite TV Channel in
Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System).
ZHOU Hai, male, born in November 1976, member of the Communist Party of China, holds a master’s degree in law,
literary editor of second rank; former Director of the Chief Editor Office, Assistant to the Director and Director of the Chief Editor
Office of the Satellite TV Channel in Hunan Broadcasting System, member of the Party Committee, Deputy Director and Director
of the Chief Editor Office of Satellite TV Channel in Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System),
member of the Party Committee and Secretary of the Discipline Inspection Committee of Mango Excellent Media Co., Ltd.; and is
now member of the Party Committee and Deputy General Manager of Mango Excellent Media Co., Ltd., and member of the Party
Committee of Satellite TV Channel in Golden Eagle Broadcasting System Co., Ltd. (Hunan Broadcasting System).
ZHANG Zhihong, male, born in September 1977, member of the Communist Party of China, holds a master’s degree in
management; former Senior Director of the Assets and Finance Department, General Manager of the Finance Center, and Finance
Director of Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and Deputy General Manager and Finance Director
of Happy Sunshine Xingmang Interactive Entertainment Media Co., Ltd.; and is now Deputy General Manager and Finance
Director of Mango Excellent Media Co., Ltd, member of the Party Committee, Deputy General Manager and Finance Director of
Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd., and the director of Xiaomang Electronic Commerce Co., Ltd.
SHEN Yadong, male, born in June 1980, member of the Communist Party of China, holds a master’s degree in law; former
Deputy General Manager of the Program Department of the Chief Editor Office of Satellite TV Channel in Hunan Broadcasting
System, Head of Copyright Management Department of HBS Program Transaction Management Center, Deputy General Manager
of Shanghai EE-Media Co., Ltd., No. 1 Deputy Director of Legal Affair Department of Golden Eagle Broadcasting System Co.,
Ltd., and Assistant to General Manager of Mango Excellent Media Co., Ltd.; and is now Deputy General Manager of Mango
Excellent Media Co., Ltd., and executive director and General Manager of Shanghai EE-Media Co., Ltd.
LUO Zejun, male, born in February 1971, member of the Communist Party of China, undergraduate; former Director of the
Security Department of Hunan Economic TV Channel, Deputy Director of HBS Urban Channel, Executive Deputy General
Manager, Secretary of the General Party Branch, and General Manager of Hunan Radio, Film & Television Property Management
Center, and Director of HBS Logistics Support Center; and is now Deputy General Manager of Mango Excellent Media Co., Ltd.,
and member of the Party Committee and Deputy General Manager of Hunan Happy Sunshine Interactive Entertainment Media Co.,
Ltd.
WU Jun, female, born in February 1983, member of the Communist Party of China, holds a doctor’s degree in arts; worked
as reporter and editor in charge at Hunan News of Hunan TV, Deputy Chief of the Administration and Human Resources
Department, Director of the General Manager’s Office and Party Branch Secretary of the Head Office of Mango Media Co., Ltd.;
and is now Deputy General Manager, Secretary of the Board of Directors, and Director of Board Office of Mango Excellent Media
Co., Ltd.
Positions held in shareholders:
Applicable N/A
Whether or not
receiving
Beginning date of End date of the
Name Shareholder Position remunerations and
the term of office term of office
subsidies from
such shareholder
Mango Media Co., Director &
YANG Yun
Ltd. General Manager
Positions held in other entities:
Applicable N/A
Beginning date of End date of the Whether or not
Name Entity Position
the term of office term of office receiving
54
Mango Excellent Media Co., Ltd. Annual Report 2022
remunerations and
subsidies from
such entity
Member of the
Party Committee,
Golden Eagle
Deputy General
Broadcasting
Manager (Vice
System Co., Ltd.
CAI Huaijun President) and
(Hunan
Secretary of the
Broadcasting
Party Committee
System)
of Satellite TV
Channel
Associate research
Institute of Law,
ZHONG fellow & Chief of
Sichuan Academy
Hongming the Finance Law
of Social Sciences
Research Office
ZHONG China Commercial Member of the
Hongming Law Society Executive Council
ZHONG China Securities Member of the
Hongming Law Society Executive Council
ZHONG FIYTA (Group) Independent
Hongming Co., Ltd. Director
Chengdu
ZHONG Independent
Shengbang Seals
Hongming Director
Co., Ltd.
School of
Economics and Professor & Chief
XIAO Xing Management, of the Department
Tsinghua of Accounting
University
Institute for Global
Private Equity,
XIAO Xing Dean
Tsinghua
University
National
Accounting
Professional
XIAO Xing Member
Master Education
Steering
Committee
Accounting
Teaching Steering
XIAO Xing Committee of the Member
Ministry of
Education
Independent
XIAO Xing Li Auto
Director
Chinese Academy Professor and
LIU Yuhui
of Social Sciences doctoral tutor
LIU Yuhui TF Securities Guest economist
China Chief Member of the
LIU Yuhui
Economist Forum Executive Council
Annuity Council
of China National Member of the
LIU Yuhui
Petroleum Executive Council
Corporation
YANG Yun Golden Eagle Assistant to the
55
Mango Excellent Media Co., Ltd. Annual Report 2022
Broadcasting General Manager
System Co., Ltd. and Head of the
(Hunan Assets and Finance
Broadcasting Department of the
System) Group, and
Director of the
Finance
Department of
HBS
Hunan TV &
Broadcast
YANG Yun Director
Intermediary Co.,
Ltd.
Golden Eagle Deputy Secretary
Broadcasting of the Party
System Co., Ltd. Committee and
SONG Zichao
(Hunan Director of
Broadcasting Satellite TV
System) Channel
Golden Eagle
Broadcasting Member of the
System Co., Ltd. Party Committee
LIANG Deping
(Hunan of Satellite TV
Broadcasting Channel
System)
Secretary of the
MIGU Culture
Party Committee,
LIU Xin Technology Co.,
Chairman and
Ltd.
General Manager
LIU Xin iFlyTek Co., Ltd. Director
Hunan Chasing
Assistant to the
PENG Jian Financial Holding
General Manager
Group Co., Ltd.
Golden Eagle
Broadcasting
Deputy Director of
System Co., Ltd.
FANG Fei Satellite TV
(Hunan
Channel
Broadcasting
System)
Golden Eagle
Broadcasting Member of the
System Co., Ltd. Party Committee
ZHENG Huaping
(Hunan of Satellite TV
Broadcasting Channel
System)
Golden Eagle
Broadcasting Member of the
System Co., Ltd. Party Committee
ZHOU Hai
(Hunan of Satellite TV
Broadcasting Channel
System)
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
56
Mango Excellent Media Co., Ltd. Annual Report 2022
3. Remunerations of directors, supervisors and executives
Decision-making process, criteria for determination and actual amount in respect of remunerations of directors, supervisors and
executives
Decision-making process: The remunerations of our directors and supervisors are decided by the shareholders’ meeting according
to our Articles of Association and other relevant provisions; the remunerations of executives are decided by the Board of Directors.
The remunerations and subsidies of our directors and supervisors are considered and approved by the Board of Directors, and then
submitted to the general meeting of shareholders for approval.
Criteria for determination of the remunerations: The remunerations are determined according to our business situations, scope,
duties, importance and result of performance appraisal. The subsidies of independent directors are determined by reference to the
overall level of the listed companies in the same region and industry.
Amount of remunerations actually paid: The remunerations of directors, supervisors and executives holding posts in the Company
are paid by the Company during the Reporting Period. We do not pay any additional subsidy to our directors and supervisors. The
amount of total remunerations paid in 2022 was RMB34,612,300.
Remunerations of directors, supervisors and executives paid in the Reporting Period:
In RMB 0’000
Total Whether or not
remuneration receiving
received from remunerations
Name Title Gender Age Status
the Company from any
(inclusive of affiliate of the
tax) Company
Chairman and
CAI Huaijun Male 46 Current
Director
General
Retired 513.33
Manager
ZHONG Independent
Male 48 Current 22
Hongming Director
Independent
XIAO Xing Female 52 Current 22
Director
Independent
LIU Yuhui Male 53 Current 22
Director
YANG Yun Director Male 50 Current
Chairman of
Board of Retired
Supervisors
SONG Zichao Director Male 54 Current
Director &
LIANG Deping General Male 44 Current
Manager
Executive
Deputy General
Manager,
Deputy General Retired 450
Manager, and
Finance
Director
LIU Xin Director Male 52 Current
PENG Jian Director Male 51 Current
57
Mango Excellent Media Co., Ltd. Annual Report 2022
Chairman of
the Board of
Male 38 Current
Supervisors and
FANG Fei
Supervisor
Employee
Retired 450
Supervisor
ZHANG
Supervisor Male 51 Current
Shangbin
Employee
XIE Shaoqiang Male 38 Current 280
Supervisor
ZHENG Deputy General
Male 47 Current 400
Huaping Manager
Deputy General
ZHOU Hai Male 47 Current
Manager
Deputy General
ZHANG Manager and
Male 46 Current 480
Zhihong Finance
Director
Deputy General
SHEN Yadong Male 43 Current 256
Manager
Deputy General
LUO Zejun Male 52 Current 256
Manager
Deputy General
Manager and
WU Jun Female 40 Current 256
Board
Secretary
ZHANG Huali Chairman Male 59 Retired
LUO Weixiong Director Male 61 Retired
ZHANG Yong Director Male 61 Retired
TANG Liang Director Male 47 Retired 53.9
LI Jiaochun Supervisor Male 59 Retired
Total -- -- -- -- 3,461.23 --
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 Disclosure date Resolution of the meeting
Refer to the Announcement
on Resolutions of the 8th
8th meeting of the 4th Board
April 21, 2022 April 25, 2022 meeting of the 4th Board of
of Directors
Directors disclosed on
www.cninfo.com.cn.
Refer to the Announcement
on Resolutions of the 9th
9th meeting of the 4th Board
July 4, 2022 July 5, 2022 meeting of the 4th Board of
of Directors
Directors disclosed on
www.cninfo.com.cn.
Refer to the Announcement
on Resolutions of the 10th
10th meeting of the 4th Board
August 16, 2022 August 18, 2022 meeting of the 4th Board of
of Directors
Directors disclosed on
www.cninfo.com.cn.
Refer to the Announcement
11th meeting of the 4th Board
August 30, 2022 August 31, 2022 on Resolutions of the 11th
of Directors
meeting of the 4th Board of
58
Mango Excellent Media Co., Ltd. Annual Report 2022
Directors disclosed on
www.cninfo.com.cn.
Refer to the Announcement
on Resolutions of the 12th
12th meeting of the 4th Board
October 24, 2022 October 25, 2022 meeting of the 4th Board of
of Directors
Directors disclosed on
www.cninfo.com.cn.
Refer to the Announcement
on Resolutions of the 13th
13th meeting of the 4th Board
December 8, 2022 December 9, 2022 meeting of the 4th Board of
of Directors
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 board Whether or
No. of board
meetings that not having
No. of board meetings No. of board No. of
should be No. of board been absent
meetings present by meetings shareholders’
Director attended meetings from two
present in means of present by meeting
during the absent from consecutive
person communicati proxy attended
Reporting board
on equipment
Period meetings
CAI Huaijun 6 2 4 0 0 No 2
ZHONG
6 0 6 0 0 No 2
Hongming
XIAO Xing 6 0 6 0 0 No 2
LIU Yuhui 6 1 5 0 0 No 2
LIU Xin 6 0 6 0 0 No 2
PENG Jian 5 1 4 0 0 No 1
ZHANG
Huali 6 1 4 1 0 No 2
(retired)
LUO
Weixiong 6 2 4 0 0 No 2
(retired)
ZHANG
Yong 6 2 4 0 0 No 2
(retired)
TANG Liang
1 1 0 0 0 No 0
(retired)
Explanation about absence from two consecutive meetings of the Board of Directors
3. Objections raised by the directors regarding matters of the Company
Whether any director has raised any objection regarding matters of the Company?
Yes No
No director has raised any objection regarding matters of the Company during the Reporting Period.
4. Other information regarding the performance of duties by the directors
Whether the suggestions put forward by the directors have been adopted by the Company?
Yes No
59
Mango Excellent Media Co., Ltd. Annual Report 2022
Explanation about the adoption or non-adoption by the Company of the suggestions put forward by the directors
During the Reporting Period, our directors have performed their duties and obligations diligently in strict accordance with the
Company Law, the Securities Law and other applicable laws and regulations and our Articles of Association, actively participated
in the relevant meetings, and seriously considered all proposals. Our independent directors have kept communications with other
directors, executives and related personnel by multiple ways, asked for information about our production, operation and financial
conditions, put forward suggestions regarding our development strategies and corporate governance, and expressed independent
opinions about related-party transactions, profit distribution policies, remuneration management and other matters, to effectively
ensure the fairness and objectiveness of the decisions made by the Board of Directors. Our directors perform their duties honestly
and in good faith, safeguard the legitimate rights and interests of the Company and all shareholders, and play an active role in
promoting our operational compliance and healthy development.
60
Mango Excellent Media Co., Ltd. Annual Report 2022
IX. Activities of the committees of the Board of Directors during the Reporting Period
No. of
Date of Important opinions Performance of
Committee Members meetings Topics Objections (if any)
meeting and suggestions other duties
held
Considered and approved the Proposal Regarding
XIAO Xing
the 2021 Auditor’s Report, the Proposal Regarding
(Chairman),
the Self-assessment of Internal Controls in 2021,
ZHONG
the Proposal Regarding the Special Report on the
Hongming,
April 11, Deposit and Use of Offering Proceeds in 2021, the
LIU Yuhui,
2022 Proposal Regarding the Special Examination
LUO
Report on the Implementation of Significant Events
Weixiong
and Material Receipts and Payments in 2021, the
and TANG
Proposal Regarding the Financial Report for the
Liang
First Quarter of 2022.
XIAO Xing
(Chairman),
ZHONG Considered and approved the Proposal Regarding
April 25,
Hongming, the Special Report on Offering Proceeds in the First
2022
LIU Yuhui, Quarter of 2022.
Audit and LUO
Committee Weixiong 5
Considered and approved the Proposal Regarding
XIAO Xing
the Financial Report for the First Half of 2022, and
(Chairman),
the Proposal Regarding the Special Report on the
ZHONG
August 6, Deposit and Use of Offering Proceeds in the First
Hongming,
2022 Half of 2022; and approved the Proposal Regarding
LIU Yuhui,
the Special Examination Report on the
and LUO
Implementation of Significant Events and Material
Weixiong
Receipts and Payments in the First Half of 2022.
XIAO Xing Considered and approved the Proposal Regarding
(Chairman), the Financial Report for the Third Quarter of 2022,
ZHONG the Proposal Regarding the Re-appointment of
October 19,
Hongming, Accounting Firm, and approved the Proposal
2022
LIU Yuhui, Regarding the Special Report on the Deposit and
and LUO Use of Offering Proceeds in the Third Quarter of
Weixiong 2022.
XIAO Xing December Considered and approved the Proposal Regarding
61
Mango Excellent Media Co., Ltd. Annual Report 2022
(Chairman), 30, 2022 the 2022 Annual Report Audit Plan prepared by
ZHONG Pan-China Certified Public Accountants LLP, and
Hongming, the Proposal regarding the 2023 Internal Audit
LIU Yuhui, Plan.
and LUO
Weixiong
ZHONG
Hongming
(Chairman),
Considered and approved the Proposal Regarding
Nominating XIAO Xing, April 12,
2 Nomination of Non-independent Director
Committee LIU Yuhui, 2022
Candidates
ZHANG
Yong and
CAI Huaijun
Considered and approved the Proposal Regarding
the Engagement of the Company’s Executive
June 28, Deputy General Manager, the Proposal Regarding
2022 the Engagement of the Company’s Deputy General
Manager, and the Proposal Regarding the Change
of the Company’s Chief Financial Officer
LIU Yuhui
(Chairman),
ZHONG
Compensation Considered and approved the Proposal Regarding
Hongming, January 24,
and Appraisal 2 Total Salaries and Executives’ Remunerations of
XIAO Xing, 2022
Committee Mango Excellent Media for 2021.
ZHANG
Yong and
LIU Xin
LIU Yuhui
(Chairman),
ZHONG
Compensation Considered and approved the Proposal Regarding
Hongming, April 12,
and Appraisal 2 Performance Appraisal of Executives for 2021 and
XIAO Xing, 2022
Committee Remuneration Proposal for 2022.
ZHANG
Yong and
LIU Xin
62
Mango Excellent Media Co., Ltd. Annual Report 2022
63
Mango Excellent Media Co., Ltd. Annual Report 2022
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
4,091
Reporting Period
Total of employees on active duty (person) at the end of the
4,125
Reporting Period
Total of employees receiving remuneration for the current
4,125
period (person)
Retired employees whose expense is undertaken by parent
8
company and main subsidiaries (person)
Composition of employees by specialization
Areas of specialization Headcounts
Production personnel 1,383
Sales personnel 1,656
Technical personnel 716
Finance personnel 127
Administrative personnel 243
Total 4,125
Education background
Education background Headcounts
Doctorate 6
Master’s degree 587
Bachelor’s degree 2,766
Junior college or below 766
Total 4,125
2. Remuneration policy
In order to establish and improve the market-based salary determination mechanism and internal incentive and restraint
mechanism, and effectively promote the scientific development of the Company, the Company has formulated and promulgated
the Measure of Gross Remuneration Determination Mechanism and Management of Mango Excellent Media Co., Ltd., which
provides detailed provisions on the method of determining the gross payroll of the Company’s employees, reasonable intervals,
formula, management procedures and supervision and inspection mechanisms. This measure strictly complies with the relevant
provisions of the policy documents and adheres to the basic principles of “strategic orientation, dual-effect unification, benefits
synergy and dynamic supervision”. According to this measure, the annual gross payrolls of employees of the Company are
64
Mango Excellent Media Co., Ltd. Annual Report 2022
determined reasonably by taking the total annual salary of prior year as the basis and considering the Company’s salary-income
ratio and market and industry benchmark, the completion of the assessment goals, the rate of value preservation and appreciation
of state-owned assets, labor cost production ratio and other factors in accordance with the Company’s development strategy and
remuneration strategy, annual production and operation goals, social benefits, economic benefits and other factors.
3. Training plan
The Company continuously establishes and improves a systematic employee training system and cultivation system, and carries
out training work by categories and levels. Based on an in-depth understanding of the training needs of employees, the Company
has developed interesting and practical courses for employees of different functions, and established a comprehensive training
system covering vocational training, theoretical education, professional training, marketing, new technology, new media operation,
etc., to support the comprehensive development of the Company’s talents and enhance employees’ sense of belonging.
4. Outsourcing
Applicable N/A
Total working hours of outsourcing (hour) 605,520
Total remuneration paid for outsourcing (RMB) 28,710,000.00
XII. The Company’s profit distribution and capitalization of capital reserve
Policies of profit distribution during the Reporting Period, especially the development, implementation, or adjustment of cash
dividend distribution policies
Applicable N/A
During the Reporting Period, the Company implemented the 2021 profit distribution plan as follows: an aggregate of
RMB243,193,705.95 as cash dividends are distributed to all shareholders at RMB1.3 (tax inclusive) per 10 shares based on the
total share capital of 1,870,720,815 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
Are decision-making procedures and mechanisms complete? Yes
Do independent directors diligently perform their duties and
Yes
play 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.
65
Mango Excellent Media Co., Ltd. Annual Report 2022
Description of the profit distribution and capitalization of capital reserve during this year
Number of bonus shares distributed for each 10 shares (unit:
0
share)
Amount of dividends distributed for each 10 shares (in RMB)
1.3
(including tax)
Number of shares transferred from capital reserve each 10
0
shares (unit: share)
Basic number of the share capital for the distribution proposal
1,870,720,815
(unit: share)
Amount of cash dividends (in RMB) (including tax) 243,193,705.95
Amount of cash dividends through other methods (e.g.,
0.00
repurchase of shares) (in RMB)
Total cash dividends (including those distributed through other
243,193,705.95
methods) (in RMB)
Distributable profits (in RMB) 246,837,709.46
Proportion of total cash dividends (including those distributed
100.00%
through other methods) to the 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 or capitalization of capital reserve
The profit distribution proposal which is in compliance with the relevant provisions of the Articles of Association and the
deliberation procedures, has fully protected the legitimate rights and interests of minority investors, on which the independent
directors have expressed their agreement opinion independently.
The Company puts forward no proposal for cash dividend distribution despite of profitable and positive profits of its parent
company attributable to shareholders during the Reporting Period
Applicable N/A
XIII. Implementation of the Company’s equity incentive plan, employee shareholding plan
or other employee incentive measures
Applicable N/A
The Company has no equity incentive plan, employee shareholding plan or other employee incentive measures as well as the
implementation thereof during the Reporting Period.
XIV. Construction and implementation of internal control system during the Reporting
Period
1. Construction and implementation of internal control system
During the Reporting Period, the Company conscientiously complies with all laws and regulations as well as the provisions of the
Company’s internal control system to standardize operations, optimize governance and control risks. Through comprehensive
implementation of the Company’s internal control application manual, the Company makes continuous review and evaluation on
the implementation effects of the internal control system, continues to improve and optimize various important business processes
in conjunction with business changes, and revises and updates the internal control application manual, in order to ensure its
internal control management develops synchronously with businesses, and its internal control system is complete, compliant with
laws and regulations, effective and feasible. The Audit Department under the Audit Committee of the Board of Directors of the
Company carries out independent and objective supervision and evaluation within the Company pursuant to regulations and
66
Mango Excellent Media Co., Ltd. Annual Report 2022
systems such as the Basic Standards for Enterprise Internal Control, Internal Audit Standards, the Company’s Audit Management
System and Management Measures for Self-Evaluation of the Company’s Internal Control. In accordance with the determination
of material deficiencies in the Company’s internal control over financial report, the Company has no material deficiencies in
internal control over financial report on the benchmark date of the internal control evaluation report, and the Company has
maintained effective internal control over financial report in all material aspects under the requirements of Standards for Enterprise
Internal Control and related regulations. In accordance with the determination of material deficiencies in the Company’s internal
control over non-financial report, the Company has no material deficiencies in internal control over non-financial report on the
benchmark date of the internal control evaluation report. There are no factors affecting the evaluation conclusion of the
effectiveness of internal control from the benchmark date of the internal control evaluation report to the issue date thereof.
2. Details of material internal control deficiencies identified during the Reporting Period
Yes No
XV. Management and control of subsidiaries by the Company during the Reporting Period
Integration Problems met Solutions Subsequent
Company name Integration plan Progress
progress in integration adopted solutions
N/A N/A N/A N/A N/A N/A N/A
XVI. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
Disclosure date April 22, 2023
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 of
material deficiencies and significant material deficiencies and significant
deficiencies. deficiencies.
2. Significant deficiencies: the selection 2. Significant deficiencies: general
and application of accounting policies mistakes resulting from decision-making
inconsistent with the generally accepted procedures; violation of internal rules and
Qualitative standard accounting standards; the absence of anti- regulations, resulting in losses; deficiencies
fraud procedures and control measures; the in significant business mechanisms or
absence of appropriate control systems; significant or general deficiencies
mechanisms, the absence of compensatory in internal control that have not been
controls or failure in the implementation rectified.
thereof for the accounting treatment of 3. Material deficiencies: significant
irregular or special transactions; the mistakes due to lack of democratic
existence of one or more deficiencies in the decision-making procedures or unscientific
67
Mango Excellent Media Co., Ltd. Annual Report 2022
control of the financial reporting process at decision-making procedures, resulting in
the end of the period and the absence of significant property losses to the Company;
reasonable assurance that the financial serious violations of national laws and
statements prepared are true and accurate. regulations; lack of significant business
3. Material deficiencies: fraud acts of the mechanisms, or ineffectiveness of
Company’s directors, supervisors, or implementation thereof; continuous or a
executives; correction of published large quantity of significant internal control
financial reports by the Company, and deficiencies in the Company.
material misstatements in the current
financial reports detected by the certified
public accountants 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 consolidated operating income <0.5%.
1. General deficiencies: direct property loss
2. Significant deficiencies: 3% ≤ potential
subsequent to consolidation <0.5% of total
misstatement of total consolidated profit
assets of the Company;
<5%, 0.5% ≤ potential misstatement of
2. Significant deficiencies: 0.5% of total
total consolidated owner’s equity <1%,
assets of the Company ≤ direct property
Quantitative standard 0.5% ≤ potential misstatement of total
loss subsequent to consolidation <1% of
consolidated assets <3%, 0.5% ≤ potential
total assets of the Company;
misstatement of total consolidated
3. Material deficiencies: 1% of total assets
operating income <1%.
of the Company ≤ direct property loss
3. Material deficiencies: potential
subsequent to consolidation.
misstatement of total consolidated profit
≥5%,
potential misstatement of total consolidated
owner’s equity ≥1%, potential
misstatement of total consolidated assets
≥3%, potential misstatement of total
consolidated operating income ≥1%.
Number of material deficiencies of
0
financial reports (piece)
Number of material deficiencies of non-
0
financial reports (piece)
Number of significant deficiencies of
0
financial reports (piece)
Number of significant deficiencies of non-
0
financial reports (piece)
2. Audit or assurance report of internal control
Assurance report of internal control
Audit opinion on assurance report of internal control
The Company maintained effective internal control over financial reports in all material aspects as of December 31, 2022 in
accordance with the Basic Standard for Corporate Internal Control and relevant regulations. This conclusion is based on the
inherent limitations set forth in the authentication report.
68
Mango Excellent Media Co., Ltd. Annual Report 2022
Disclosure of Internal Control Assurance Report Disclosure
Disclosure date April 22, 2023
Index for Disclosure http://www.cninfo.com.cn
Type of opinions Standard unqualified opinion
Whether there are any material deficiencies in non-financial
No
reports
Did the accounting firm issue a modified assurance report of internal control?
Yes No
Was the assurance report of internal control issued by the accounting firm in line with self-evaluation report opinion of the Board
of Directors?
Yes No
XVII. Rectification on self-examination problems regarding the special campaign to
improve the governance of listed companies
Under relevant requirements of the Announcement on Launching a Special Campaign to Improve the Governance of Listed
Companies (Zheng Jian Hui [2020] No. 69) by China Securities Regulatory Commission (“CSRC”) and the Circular on Launching
a Special Campaign to Improve the Governance of Listed Companies (Xiang Zheng Jian Gong Si Zi [2020] No. 31) by Hunan
Regulatory Bureau of CSRC, the Company conscientiously organizes, carefully arranges and actively carries out the special
campaign to improve the governance of listed companies. Through self-examination, self-correction and self-regulation, the
Company has strengthened the endogenous power of corporate governance and improved rules of corporate governance system,
thus a good ecology of corporate governance has been established, and a listed company governance structure with each
department taking accountability for their own duties and responsibilities, coordinated operation and effective balances has been
further improved, so as to solidify the foundation of the Company’s high-quality development.
Problems: There was no horizontal competition between Mango Media Co., Ltd. as our controlling shareholder and the Listed
Company. Mango Media Co., Ltd. has made written commitment on matters related to horizontal competition with the Listed
Company to avoid horizontal competition with the Listed Company. Xiaoxiang Film Group under GBS as our indirect controlling
shareholder and HTBI have similar businesses with the Listed Company.
Reasons: In accordance with relevant notices and replied approvals issued by the General Office of the CPC Hunan
Provincial Committee, the General Office of the People’s Government of Hunan Province and the Special Panel for Reform of
Hunan Provincial Cultural System from 2018, the CPC Hunan Provincial Committee and the People’s Government of Hunan
Province proposed to reorganize the CPC Committee of Golden Eagle Broadcasting System Co., Ltd. to universally lead Golden
Eagle Broadcasting System, Xiaoxiang Film Group and HBNHG. It was agreed that Xiaoxiang Film Group and HBNHG were
merged into GBS to be its wholly-owned subsidiaries, and all institutional assets owned by Hunan Broadcasting System were
divested and transferred to GBS, so that the management system of “two institutions under the leadership of one CPC committee
operating integratedly” can be realized, and GBS can further develop. After the integration of GBS, Xiaoxiang Film Group (film
and television content production business) and HTBI (game business) under HBNHG have similar businesses with the Listed
Company.
Rectification plan: GBS has issued written commitment on matters related to horizontal competition with the Listed Company
during the application process of the Company’s 2020 non-public offering and of free transfer by the Company’s controlling
shareholder of the state-owned shares, which clearly describes the plan and schedule for solving the horizontal competition with
key details referring to Section VI “I. Performance of commitments”.
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Mango Excellent Media Co., Ltd. Annual Report 2022
Section V Environmental and Social Responsibility
I. Significant environment protection problems
Whether the Listed Company and its subsidiaries are in high pollution industries regulated by the State Department of
Environmental Protection?
Yes No
Description of administrative penalties for environmental problems during the Reporting Period
Effects on
Company or Reasons for production and Rectification
Violation cases Penalty result
subsidiaries penalty operation of the measures
Listed Company
N/A N/A N/A N/A N/A N/A
Other environment information disclosed with reference to other entities engaged in high pollution industries
N/A
Measures taken to reduce its carbon emissions and their effectiveness during the Reporting Period
Applicable N/A
Reasons for not disclosing other environment information
None of the Company or its subsidiaries is a major polluter identified by the environmental protection authority. During the
Reporting Period, the Company and its subsidiaries received no penalties due to violation of laws and regulations related to
environment protection.
II. Description of social responsibilities
We have always adhered to the leadership of the Party with utter loyalty. As a state-owned mainstream new media and the
listed company, Mango Excellent Media has always put its social responsibilities first. In 2022, in reliance on Mango ecological
advantages of in-depth integrated development of the double platforms, we promoted mainstream value communication,
contributed to rural revitalization and social welfare, focused on protection of investors, and effectively shouldered the social
responsibilities as a state-owned enterprise.
We kept our mission as a Party media and a state-owned enterprise firmly, strived to secure that underlying values hold
greater appeal than ever before, and the wave of positive energy felt throughout society is building, and continuously enhanced our
ability to guide mainstream values. During the 20th National Congress of CPC, with the help of two platforms including Hunan
TV and Mango TV, we carried out integrated communication and launched a number of heavyweight plans, products and
arrangements to establish a multi-dimensional communication matrix of positive energy and actively created an enthusiastic and
positive public opinion atmosphere. We have always adhered to the people-centered creation direction, created the works
accessible to and serving ordinary people at the grassroots to tell warm and resonant Chinese stories, shaping the image of the
people for a new area and demonstrating great achievements for a new area. We have sticked to cultural confidence and actively
explored excellent cultural elements to integrate traditional Chinese culture into our work creation and enhance cultural
connotation of our works. Also, we have developed new ways of communication, intensified efforts to expand overseas market
and actively advanced Chinese culture to go out.
Mango TV launched a special channel to publicize the 20th National Congress of CPC in a comprehensive way. “Philosophy
Shining China Sharing”, “Letter from General Secretary”, and “A Journey into the Thought” show the responsibility and elegant
demeanor as a new mainstream media. “The Past Decade”, “The Past Decade Light Chaser” and “The Past Decade Light
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Mango Excellent Media Co., Ltd. Annual Report 2022
Chasing Night” are about the struggle history of light chasers in the new era, winning big traffic with central theme content and
positive energy. “The Power Source”, “Draw the Line” and other thematic dramas were broadcast intensively during the 20th
National Congress of CPC, building a network zone for dramas carrying forward positive energy. The TV series “Our Times”
demonstrates the miracles with the persistent efforts of representatives from all walks of life. In addition, the documentary “China
S2” discusses our culture in the vision of the world, and explores the source of Chinese spirit, Chinese power and Chinese
confidence in the context of international communication. Mango TV’s international communication works have won the China
News Award for four consecutive years. As of the end of the Reporting Period, the Mango TV International APP was downloaded
more than 118 million times, an increase of 94.1% year on year; the number of overseas users exceeded 110 million, and overseas
business services covered more than 195 countries and regions in the world, supporting subtitle switching in 18 languages.
We devoted ourselves to public welfare activities, built “Mango Public Welfare” platform to actively respond to major social
concerns and launch public fundraising projects for emergency and disaster relief as an important complementary force to the
government’s welfare policy benefiting all people. With these efforts, we strived to effectively address the urgent needs of the
public, ensured people’s wellbeing and raised the level of public service supply. During the summer vacation in 2022, the Mango
Public Welfare platform launched the Mango public welfare activity to assist the impoverished students, entitled “Weak Light
Coming Together as Bright as Sun”, and a total of RMB10.03 million was raised, including offline donations from enterprises.
After the forest mountain fire broke out in Chongqing, Mango Public Welfare platform organized the public welfare project
“Guarding Our Beautiful Mountain” without delay. To be specific, we planted trees for the mountainous areas affected by the
wildfire, and carried out forest guarding and disaster prevention activities. Further, after an earthquake struck Luding county,
Sichuan Province on September 5, 2022, Mango Public Welfare platform timely started the fundraising project “Help Luding
County, Sichuan” to collect donations from people from all walks of life, which are used to buy relief materials and help rebuild
families after earthquake. During the “June 1” Children’s Day, Mango TV organized a series of public welfare activities entitled
“Protect Children” to care for disadvantaged children. On the “March 8” International Women’s Day, Mango TV organized the
online public welfare activity to promote women’s employment and entrepreneurship, protect maternal and child health and care
about minority girls.
We gave full play to the advantages of our new media platform and actively fulfilled our social responsibility of investor
protection. During the Reporting Period, the investor education channel of the Mango TV, as the investor education base of new
media, actively promoted the opening of columns around such themes as “Registration System Reform”, “New Regulations on
Delisting”, “Advancing Development of National Financing Education”, “Shareholders Coming” and “Propaganda and Education
on Preventing and Fighting Illegible Activities”, with a total of 9,000 minutes of video content and 250 million views. The short
video of investor education entitled “Application of Knowledge to Practice” ranked 1 st among 3,800 pieces of works in the
national short video competition -“Hi, Registration System” organized by China Securities Investor Services Center. What’s more,
we organized the high-quality final competition of “Shareholders Coming 2022” and held the Mango investor education forum.
Our investor protection work was affirmed well by regulatory authorities.
For our fulfillment of social responsibilities, see the 2022 ESG Report and Social Responsibility Report disclosed on
www.cninfo.com.cn on the same day.
III. Description of consolidating and expanding achievements of poverty eradication and
rural revitalization
Relying on its own integrated media resources and e-commerce platform, the Company utilizes the power of media to
consolidate poverty alleviation achievements and help with rural revitalization. During the 1st Hunan Tourism Development
Conference, the Company worked with Hunan TV to give full play to the advantages of the dual platforms, and efficiently
organized and disseminated the opening ceremony and promotion party of the 1st Hunan Tourism Development Conference in just
one week. As of midnight of the day, a total of 120 million audiences watched the livestreaming on new media such as Hunan TV
71
Mango Excellent Media Co., Ltd. Annual Report 2022
and Mango TV, and a new pattern of cultural and tourism integration has thus been built in Hunan with ingenious creation. During
the event, the Company created a “mainstream media + e-commerce” public benefit platform - Mango Revitalization Cloud
Supermarket, which launched a series of livestreaming events with hundreds of Internet anchors, themed “Beautiful Scenery in a
Fairyland, Quality Products from Nature”, achieving sales of RMB14.8744 million in total across all Internet-based platforms.
Mango Revitalization Cloud Supermarket also gives full play to the brand effect of a ten-year brand program of Hunan
Broadcasting System named “New Year at the Grassroots” by promoting characteristic agricultural products from all over Hunan
and publicizing local characteristic tourism at the start of every Spring Festival through live commerce in “Great Changes in New
Mountain Areas” via the launch of the topic page of “New Year at the Grassroots”. Besides, Mango Revitalization Cloud
Supermarket organized the “Yanling Yellow Peach Sweetens the World” event in July 2022, selling out 5,213 pieces of Yanling
Yellow Peach in just one week, with a sale volume of over RMB750,000. The “Thousands of Screens for Livestreaming: Purchase
from Anhua on Cloud” livestreaming event was held in November, promoting characteristic agricultural and sideline products
represented by Yiyang Anhua Black Tea and tourism resources to the people across China. With the foregoing programs, every
product sold through livestreaming can truly enhance the local economy.
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Mango Excellent Media Co., Ltd. Annual Report 2022
Section VI Important Events
I. Performance of Commitments
1. Commitments completed during the Reporting Period or not completed as of the end of the reporting
period by the actual controller, shareholders, affiliates and acquirer of the Company, the Company itself
and other related parties
Applicable □ N/A
Commitment Committed by Type Content Date Deadline Performance
1. After completion of this free transfer, we and our
related parties will minimize and regulate the related party
transactions with the List Company and its subordinate
enterprises. 2. After completion of this free transfer, with
respect to the related party transactions with the Listed
Company and its subordinate enterprises that are
unavoidable or conducted with good reason, we and our
related parties will comply with the market principle to
conclude such transactions at fair and reasonable market
prices, perform decision-making procedures for related
party transactions in accordance with the provisions of
applicable laws, regulations and normative documents,
fulfill the obligations of information disclosure in
Commitments on accordance with law and go through the relevant
Avoiding formalities for approval, and avoid such transactions as
Golden Eagle Horizontal required, and will not use related party transactions to
November Long-
Broadcasting Competition, illegally use funds and assets of the Listed Company or Ongoing
22, 2022 term
System Co., Ltd. Related Party seek any other improper interests or use the status of the
Transactions and controlling shareholder to damage the legitimate interests
Commitments Fund Use of the Listed Company and other shareholders. 3. After
made in the completion of this free transfer, we will not use the
Acquisition Report shareholder rights owned by us in the Listed Company to
or Equity Change manipulate or instruct the List Company or any of its
Report directors, supervisors and executives to cause the Listed
Company to provide or accept funds, goods, services or
other assets on unfair terms, or do any act that is
detrimental to the interests of the Listed Company. The
aforementioned commitments will remain in effect for so
long as we actually control the Listed Company and the
Listed Company maintains its listing status. We will be
liable for any actual losses, if any, caused to the Listed
Company arising from our breach of the aforementioned
commitments.
In order to ensure the independence of the Listed
Company, we make the following commitments with
respect to maintaining the independence of the Listed
Company after this free transfer: 1. We guarantee that
Golden Eagle
Other Mango Excellent Media will be independent of us and our November Long-
Broadcasting Ongoing
Commitments related parties business, assets, finance, personnel and 22, 2022 term
System Co., Ltd.
organization, among others, and we will strictly comply
with the relevant provisions of the China Securities
Regulatory Commission (the “CSRC”) on the
independence of listed companies; 2. we undertake that
73
Mango Excellent Media Co., Ltd. Annual Report 2022
we will not use our status as the actual controller of the
Listed Company to damage the legitimate interests of the
Listed Company; 3. we and the channels and enterprises
controlled by us will eliminate any illegal use of assets
and funds of the Listed Company, and in no event shall
we request the Listed Company and its controlled
subsidiaries to provide any form of guarantee or financial
support to us. The aforementioned commitments will
remain in effect for so long as we remain control of
Mango Excellent Media. We will compensate Mango
Excellent Media in time and in full for any and all losses
caused to Mango Excellent Media arising from our failure
to fulfill the aforementioned commitments.
After completion of this transfer, we will give full play to
our active role as an indirect controlling shareholder of the
Listed Company, cause the Listed Company to
continuously improve the corporate governance structure,
establish a sound internal control system, regulate the
operations of the Listed Company and raise the
governance level of the Listed Company in accordance
Golden Eagle
Other with the requirements of the Articles of Association of November Long-
Broadcasting Ongoing
Commitments Mango Excellent Media Co., Ltd., the Companies Law of 22, 2022 term
System Co., Ltd.
the People’s Republic of China, the Securities Law of the
People’s Republic of China, the Code of Corporate
Governance of Listed Companies, the Rules Governing
Listing of Stocks on Shenzhen Stock Exchange, the
Guidelines for Articles of Association of Listed
Companies and all other applicable laws and regulations
of the CSRC and the Shenzhen Stock Exchange.
1. As at the date of issue of the letter of commitments, we
and the channels or enterprises controlled by us have not
carried out horizontal competition which has material
adverse effect on the Listed Company and/or its controlled
enterprises. 2. By the end of July 2026, we and the
channels or enterprises controlled by us will settle the
horizontal competition with the Listed Company that
already existed by various means such as entrusted
management, assets restructuring, business
adjustment/termination and assets transfer/sale, and
implement measures related to business integration, in
accordance with laws, regulations, policies, articles of
association or similar constitutional documents of such
Golden Eagle channels or enterprise, with a view to benefiting business
Other November Long-
Broadcasting development of the Listed Company and safeguarding Ongoing
Commitments 22, 2022 term
System Co., Ltd. benefits of shareholders of the Listed Company. 3 We
will, and procure that channels and enterprises controlled
by us will, adopt effective measures to: (1) avoid adding
other business constituting horizontal competition with
the Listed Company and/or its controlled enterprises
before settling existing horizontal competition; (2) not to
support any persons other than the Listed Company and/or
its controlled enterprises in conducting any business or
activities which compete or would compete with the
business currently conducted or presently proposed to be
conducted by the Listed Company and/or its controlled
enterprises. 4 If we and the channels or enterprises
controlled by us have any business opportunity of
carrying out, participating in or holding shares in any
74
Mango Excellent Media Co., Ltd. Annual Report 2022
business or activity which would compete with the
business conducted by the Listed Company and/or its
controlled enterprises, then the Listed Company and/or its
controlled enterprises shall have preferred rights with
respect to such business opportunity. 5 We agree to bear
and compensate for all losses, damages and expenses
caused to the Listed Company and/or its controlled
enterprises arising from our breach of the aforementioned
commitments. 6. The aforementioned commitments will
remain in effect for so long as we actually control the
Listed Company and the Listed Company maintains its
listing status. We will be liable for any actual losses, if
any, caused to the Listed Company arising from our
breach of the aforementioned commitments.
The shares subscribed for by any person to which the
Aegon-industrial
shares are issued shall not be transferred within 6 months
Fund Management
of completion of this issuance. From end of this issuance
Co., Ltd.; Zhongou
Commitments on to expiry of lock-up period, any shares added to the shares August 24, February
Asset Management Fully fulfilled
Share Lock-Up purchased by the person to which the shares are issued 2021 24, 2022
Co., Ltd.; China
due to bonus issue or share capital converted from capital
Mobile Capital
reserves shall also comply with aforementioned lock-up
Holding Co., Ltd.
arrangement.
1. During 6 months prior to the date of board resolution
concerning this issuance and till today, we did not invest
in any similar financial business; from the date of issuing
letter of commitment (December 25, 2020) to the date
when the capitals raised this time are totally used or
during 36 months after raised capitals are available, we
undertake to not add investment in any similar financial
business (including capital increase, loan, security and
Mango Excellent Other December Long-
other forms of investment); Ongoing
Media Co., Ltd. Commitments 25, 2020 term
2. As at the date of this Announcement, we hold 100% of
shares in Hunan Happy Money Microfinance Co., Ltd.
(hereinafter “Happy Money”), we will complete dispose
Commitments of small loan business of Happy Money through
made at the time of dissolution and liquidation, termination of business or
IPO or re- transferring equities to qualified entity within 6 months
financing after letter of commitments is issued, and we will no
longer be engaged in small loan business.
(1) As at the date of issue of the letter of commitments,
GBS and the channels or enterprises controlled by it have
not carried out horizontal competition which has material
adverse effect on the Issuer and/or its controlled
enterprises.
(2) Within 5 years after completion of this issuance, GBS
Commitments on and the channels or enterprises controlled by it will settle
Fully fulfilled
Avoiding the horizontal competition with the Issuer that already
(Such
Golden Eagle Horizontal existed by various means such as entrusted management,
September Long- commitments have
Broadcasting Competition, assets restructuring, business adjustment/termination and
25, 2020 term been made in the
System Co., Ltd. Related Party assets transfer/sale, and implement measures related to
Acquisition Report
Transactions and business integration, in accordance with laws, regulations,
again).
Fund Use policies, articles of association or similar organizational
documents of such channels or enterprise, with a view to
benefiting business development of the Issuer and
safeguarding benefits of shareholders of the Issuer.
(3) GBS will, and procure that channels and enterprises
controlled by it will, adopt effective measures to:
(i) avoid adding other business constituting horizontal
75
Mango Excellent Media Co., Ltd. Annual Report 2022
competition with the Issuer and/or its controlled
enterprises before settling existing horizontal competition;
(ii) not to support any persons other than those of the
Issuer and/or its controlled enterprises in conducting any
business or activities which compete or would compete
with the business currently conducted or presently
proposed to be conducted by the Listed Company and/or
its controlled enterprises.
(4) If GBS and the channels or enterprises controlled by it
have any business opportunity of carrying out,
participating in or holding shares in any business or
activity which would compete with the business
conducted by the Issuer and/or its controlled enterprises,
then the Issuer and/or its controlled enterprises shall have
preferred rights with respect to such business opportunity.
(5) GBS agrees to bear and compensate for all losses,
damages and expenses caused to the Issuer and/or its
controlled enterprises arising from GBS’s breach of the
aforementioned commitments.
(1) We undertake that we will not interfere in the
Company’s operation and management activities beyond
our authority, nor will we encroach on the Company’s
interests;
(2) From the date of this letter of commitment to the
completion of the Company’s issuance of A-share shares
to specific persons, if securities regulatory authorities
such as the CSRC and Shenzhen Stock Exchange make
separate provisions or put forward other requirements on
measures to compensate for diluted returns and the
Hunan
commitments thereon, and the above commitments cannot
Broadcasting Other September Long-
meet such provisions, we will then make supplementary Ongoing
System; Mango Commitments 25, 2020 term
commitments in accordance with the latest provisions;
Media Co., Ltd.
(3) We will effectively take relevant recovery measures
for returns formulated by the Company and fulfill our
corresponding commitments on recovery measures for
returns. Besides, we will, in case of violating or refusing
to fulfill the above commitments, undertake the
corresponding obligations of explanation, apology and so
on in accordance with the relevant provisions, and will be
liable for compensation as appropriate in accordance with
law if losses are thus caused to the Company or its
shareholders.
(1) I undertake that I will faithfully and diligently perform
my duties and safeguard the legitimate rights and interests
CAI Huaijun; HE of the Company and all shareholders;
Jin; LIANG (2) I undertake that I will not to transfer benefits to other
Deping; LIU Xin; entities or individuals free of charge or under unfair
LIU Yuhui; LUO conditions, nor otherwise damage the Company’s
Weixiong; TANG interests;
Liang; WANG Ke; Other (3) I undertake that I will restrict my position-related September Long-
Ongoing
WU Jun; XIAO Commitments consumption; 25, 2020 term
Xing; ZHANG (4) I undertake that I will not use the Company’s assets to
Huali; ZHANG engage in investment or consumption activities irrelevant
Yong; ZHENG to performance of my duties;
Huaping; ZHONG (5) I undertake that I will procure the linkage of the
Hongming compensation system formulated by the board of directors
or the remuneration and appraisal assessment committee
with the implementation of the Company’s recovery
76
Mango Excellent Media Co., Ltd. Annual Report 2022
measures for returns within my legal authority;
(6) If the Company subsequently implements the equity
incentive plan, I undertake that I will procure the linkage
of exercise conditions for the Company’s equity
incentives to be announced with the implementation of the
Company’s recovery measures for returns within my legal
authority;
(7) From the date of this letter of commitment to the
completion of the Company’s issuance of A-share shares
to specific persons, if securities regulatory authorities
such as the CSRC and Shenzhen Stock Exchange make
separate provisions or put forward other requirements on
measures to compensate for diluted returns and the
commitments thereon, and the above commitments cannot
meet such provisions, I undertake that I will then make
supplementary commitments in accordance with the latest
provisions;
(8) I undertake that I will effectively implement measures
to compensate for diluted returns formulated by the
Company and fulfill my corresponding commitments on
measures to compensate for diluted returns. Besides, I
will, in case of violating or refusing to fulfill the above
commitments, undertake the corresponding obligations of
explanation, apology and so on in accordance with the
relevant provisions, and will be liable for compensation as
appropriate in accordance with if losses are thus caused to
the Company or its shareholders.
1. Within 36 months from the end of this issuance, we will
not transfer the Listed Company’s shares acquired by us in
this restructuring in any form, including but not limited to
the public transfer through securities market or transfer by
agreement, nor will we entrust others with management of
the Listed Company’s shares held by us. Within 6 months
of completion of this restructuring, if the daily closing
price of the Listed Company’s shares is lower than the
issue price for 20 consecutive trading days, or the daily
closing price of the Listed Company’s shares at the end of
a 6-month period is lower than the issue price, then the
lock-up period of the Listed Company’s shares acquired
by us in this restructuring will automatically be extended Fully fulfilled, but
for 6 months; such shareholder
2. The aforesaid share lock-up arrangements shall also has not gone
Mango Media Co., Commitments on July 12, July 12,
apply to the increase in holdings of consideration shares through the
Ltd. Share Lock-Up 2018 2021
acquired by us in this restructuring due to placement of formalities for
shares, bonus share distribution and capitalization of circulation of
capital reserve by the Listed Company and other reasons restricted shares.
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 security regulatory authority, then we agree to make
adjustments accordingly pursuant to the regulatory
opinions issued by the competent security regulatory
authority; after the expiry of the aforesaid lock-up period,
the relevant regulations of the CSRC and Shenzhen Stock
Exchange shall apply;
4. If we are suspected of providing or disclosing any
information containing misrepresentations, misleading
statements or materials omissions in this transaction and
77
Mango Excellent Media Co., Ltd. Annual Report 2022
are therefore investigated by the judicial authority or the
CSRC, we will not transfer the beneficial interest held by
us in the Listed Company before the investigation
conclusion of the case is determined.
In order to avoid the horizontal competition with the
Listed Company, Mango Media and Hunan Broadcasting
System have respectively issued their own Letter of
Commitments on Avoiding Horizontal Competition,
undertaking that, during the period of acting as the
controlling shareholder and actual controller of the Listed
Company,
“1. We and the channels and enterprises controlled by us
are not engaged in any business or activity in any form
that competes or would compete, directly or indirectly,
with the business of the Listed Company and/or its
controlled enterprises.
2. After completion of this restructuring, we will take and
procure the channels and companies controlled by us to
take effective measures to avoid:
(1) engaging in any business or activities directly or
indirectly in any form that competes or would compete,
directly or indirectly, with the business of the Listed
Company and/or its controlled enterprises, or holding any
interests or benefits in such business;
(2) supporting in any form any persons other than the
Commitments on Listed Company and/or its controlled enterprises in
Avoiding engagement in any business or activity that competes or
Hunan
Horizontal would compete with the business currently conducted or
Broadcasting July 12, Long-
Competition, presently proposed to be conducted by the Listed Ongoing
System; Mango 2018 term
Related Party Company and/or its controlled enterprises.
Media Co., Ltd.
Transactions and 3. If we and the channels and enterprises controlled by us
Fund Use have any business opportunity of carrying out,
participating in or holding shares in any business or
activity which would compete with the business
conducted by the Listed Company and/or its controlled
enterprises, then Listed Company and/or its controlled
enterprises shall have preferred rights with respect to such
business opportunity.
4. If our business and the business of the channels and
enterprises controlled by us competes with business of the
Listed Company and/or its controlled enterprises, then we
and the channels and enterprises controlled by us will
cease engaging in any business similar with or identical
with the principal business of the Listed Company and/or
its controlled enterprises to avoid the horizontal
competition by stopping conduct of the relevant
competitive business, including the relevant competitive
business in that of the listed company or transferring the
relevant competitive business to any unrelated third party.
5. We agree to bear and be liable for all losses, damage
and costs caused to the Listed Company and/or its
controlled enterprises due to our breach of the aforesaid
commitments.”
Commitments on In order to reduce and regulate the related party
Hunan
Avoiding transactions and safeguard the legal rights and interests of
Broadcasting July 12, Long-
Horizontal Happigo and minority shareholders, Hunan Broadcasting Ongoing
System; Mango 2018 term
Competition, System and Mango Media have issued the Letter of
Media Co., Ltd.
Related Party Commitments on Regulating Related Party Transactions
78
Mango Excellent Media Co., Ltd. Annual Report 2022
Transactions and with the contents as follows:
Fund Use we and the channels and other public institutions or
economic organizations controlled by us will take
measures to avoid conducting the related party
transactions with the Listed Company and its controlled
enterprises as far as possible;
regarding the related party transactions that cannot be
avoided or are definitely necessary (including but not
limited to product transactions, mutual offer of
services/labor and etc.), we undertake that we will urge
the channels and other public institutions or economic
organizations controlled by us to follow the principles of
market fairness, justice and openness, legally sign
agreements and perform the legal procedures in
accordance with the provisions on the decision-making
and abstention of related party transactions of the relevant
laws and regulations, normative documents and the Listed
Company to guarantee the fairness and compliance of the
related party transactions, will not harm the legitimate
rights and interests of shareholders of the Listed Company
and its controlled subsidiaries as well as shareholders of
the Listed Company through related party transactions,
and will promptly disclose the information as required by
the relevant laws and regulations and normative
documents;
We and the channels and other public institutions or
economic organizations controlled by us will eliminate
any illegal use of assets and funds of the Listed Company.
If aforesaid commitments are breached, we are willing to
assume all legal responsibilities arising therefrom.
Mango Media Co., Ltd., the controlling shareholder of the
Company, makes the following commitments with respect
to the intention to reduce shareholdings:
(1) If we intend to reduce the shares of the Company held
us it after expiry of lock-up period, we will legally do
same, and make a public announcement within 3 trading
days prior to reduction through the Company. The total
number of shares of the Company reduced by us within 2
years after expiry of lock-up period shall not exceed 5%
of total shares held by us at the time of IPO, and the price
Commitments on
Mango Media Co., at which shares are reduced shall not be less than 100% of January 21, Long-
Reducing Ongoing
Ltd. price of IPO. If shares are reduced 2 years after expiry of 2015 term
Shareholdings
lock-up period, the price at which shares are reduced
through call auction trading system of securities exchange
shall not be less than closing price of shares in the trading
day immediately preceding the share reduction
announcement day.
(2) The reduction period will be 6 months after the public
announcement of the reduction plan, and if we continue to
reduce our shareholdings after expiry of the reduction
period, we will make the public announcement anew in
accordance with the aforesaid arrangements.
Hongyi Investment Hongyi Investment Industry Phase I Fund (Tianjin) (L.P.) Mianyang Fund
Industry Phase I (“Hongyi Investment”), Mianyang Science and and Hongshan
Commitments on
Fund (Tianjin) Technology Industry Investment Fund (L.P.) (“Mianyang January 21, January Capital disclosed
Reducing
(L.P.); Mianyang Fund”) and Tianjin Hongshan Capital Investment Fund 2015 21, 2018 on November 19,
Shareholdings
Science and Center (L.P.) (“Hongshan Capital”) as other existing 2016 and Hongyi
Technology shareholders of the Company make the following Investment
79
Mango Excellent Media Co., Ltd. Annual Report 2022
Industry commitments with respect to the intention to reduce disclosed on
Investment Fund shareholdings: (1) We will not transfer or entrust others December 10, 2016
(L.P.); Tianjin with management of any pre-IPO shares of the Issuer held the Announcement
Hongshan Capital by us, nor propose the repurchase of such shares by the on Prompt of
Investment Fund Company within 12 months from the listing date of the Shareholdings
Center (L.P.) Issuer. Reduction Plan for
(2) If we intend to reduce our shareholdings in the Shareholders
Company after the expiry of the lock-up period of shares Holding 5% or
held by us in the Company, we will legally do same, and More of Shares
make a public announcement within 3 trading days prior Prior to IPO
to reduction through the Company. The shareholdings of through the
Hongyi Investment, Mianyang Fund, Hongshan Capital Company, and as
we reduce in aggregate within 2 years after the expiry of of the end of 2017,
the lock-up period will equal to the issuer’s shares held in all of them have
total by us and the reduction price will not lower than completed
80% of the IPO price of the Company. The reduction reduction of their
period will be 6 months after the public announcement of shareholdings.
the reduction plan, and if we continue to reduce our
shareholdings after expiry of the reduction period, we will
make the public announcement anew in accordance with
the aforesaid arrangements. During the period from the
listing of the Company’s shares until reduction of
shareholdings, if the Company has paid dividends, given
bonus shares, capitalized capital reserve, issued new
shares or had other ex-right and ex-dividend matters, the
floor reduction price and number of reduced shares will be
adjusted accordingly. If the Company’s shareholders fail
to fulfill these commitments, the proceeds from reduction
of shareholdings in the Company will belong to the listed
Company.
We will improve the profit distribution system,
particularly the cash dividend policy.
The Company improved the Articles of Associations
(Draft) at the 1st extraordinary general meeting of
shareholders in 2014, stipulating the Company’s profit
distribution policy, the procedures for decision-making
and implementation of the profit distribution policy,
preparation and adjustment mechanism of the profit
Commitments on distribution policy, and the plan for shareholders’ dividend
Mango Excellent January 21, Long-
Distributing returns in order to enhance the protection over minority Ongoing
Media Co., Ltd. 2015 term
Dividends shareholders. The Articles of Associations (Draft) further
defines the Company’s profit distribution, especially the
specific conditions, percentages, and forms of the cash
dividend distribution as well as the conditions of the
bonus share distribution, and clarifies that the cash
dividends are superior to bonus shares; and the Company
prepared the Plan on Dividend Returns for the Coming
Three Years of Happigo Inc. to further implement the
profit distribution system.
(I) Commitments on Avoiding Horizontal Competition
Commitments on In order to avoid the horizontal competition and protect
Avoiding the interests of the Company and other shareholders,
Hunan
Horizontal Hunan Broadcasting System as the actual controller of the
Broadcasting January 21, Long-
Competition, Company and Mango Media as the controlling Ongoing
System; Mango 2015 term
Related Party shareholder of the Company have respectively issued their
Media Co., Ltd.
Transactions and own Letter of Commitments on Avoiding Horizontal
Fund Use Competition.
1. Mango Media as the controlling shareholder of the
80
Mango Excellent Media Co., Ltd. Annual Report 2022
Company has issued its Letter of Commitments on
Avoiding Horizontal Competition.
(1) Mango Media and its other subordinate enterprises
other than the Issuer are not engaged in any business or
activity in any form that competes or would compete,
directly or indirectly, with the business of the Issuer
and/or its subordinate enterprises.
(2) Mango Media will, and procure that any enterprises
controlled by Mango Media will, adopt effective measures
to avoid:
(A) engaging in any business or activities directly or
indirectly in any form that competes or would compete,
directly or indirectly, with the business of the Issuer
and/or its subordinate enterprises, or holding any interests
or benefits in such business;
(B) supporting any persons other than the Issuer and/or its
subordinate enterprises in conducting any business or
activities which compete or would compete with the
business currently conducted or presently proposed to be
conducted by the Issuer and/or its subordinate enterprises.
(3) If Mango Media and its subordinate enterprises have
any business opportunity of carrying out, participating in
or holding shares in any business or activity which would
compete with the business conducted by the Issuer and/or
its subordinate enterprises, then the Issuer and/or its
subordinate enterprises shall have preferred rights with
respect to such business opportunity.
(4) Mango Media, as the shareholder of the Issuer, will
not engage in any business or activity that damages or
would damage the interests of the Issuer and/or its
subordinate enterprises by utilizing the status of the
shareholder, the rights to which the shareholder is entitled
and the information obtained in accordance with the
relevant laws, regulations and the Articles of Association,
including but not limited to the trade secrets of the Issuer
and/or its subordinate enterprises.
Mango Media agrees to bear and be liable for all losses,
damage and costs caused to the Issuer and/or its
subordinate enterprises due to breach of the
aforementioned commitments.
2. Commitments on avoiding horizontal competition and
constraint measures of the actual controller
(1) Letter of Overall Commitments issued by Hunan
Broadcasting System
On March 29, 2012, Hunan Broadcasting System, as the
actual controller of the Company, issued the Letter of
Commitments on Avoiding Horizontal Competition,
undertaking that:
①Hunan Broadcasting System and its other subordinate
enterprises other than the Issuer are not engaged in any
business or activity in any form that competes or would
compete with the business of the Issuer and/or its
subordinate enterprises directly or indirectly.
②Hunan Broadcasting System will, and procure that any
enterprises controlled by Hunan Broadcasting System
will, adopt effective measures to avoid:
(A) engaging in any business or activities directly or
indirectly in any form that competes or would compete
81
Mango Excellent Media Co., Ltd. Annual Report 2022
with the business of the Issuer and/or its subordinate
enterprises, or holding any interests or benefits in such
business;
(B) supporting any persons other than the Issuer and/or its
subordinate enterprises in conducting any business or
activities which compete or would compete with the
business currently conducted or presently proposed to be
conducted by the Issuer and/or its subordinate enterprises.
③ If Hunan Broadcasting System and its subordinate
enterprises have any business opportunity of carrying out,
participating in or holding shares in any business or
activity which would compete with the business
conducted by the Issuer and/or its subordinate enterprises,
then the Issuer and/or its subordinate enterprises shall
have preferred rights with respect to such business
opportunity.
Hunan Broadcasting System agrees to bear and be liable
for all losses, damage and costs caused to the Issuer and
its subordinate enterprises due to breach of the
aforementioned commitments.
(II) Letter of Commitments on Avoiding Fund Use
The controlling shareholder and the actual controller of
the Company undertake that: they will strictly comply
with the provisions of the laws, regulations, normative
documents and the Company’s relevant rules and systems,
not appropriate or use the Company’s assets or resources
in any form, nor do anything directly or indirectly which
harms or would harm the interests of the Company and
other shareholders. If the rights and interests of the
Company or other shareholders are harmed due to breach
of the aforementioned commitments and undertakings, the
controlling shareholder and the actual controller will be
liable for compensation in accordance with law.
Fulfill the
commitments on Yes
time or not
2. Explanation of the original profit estimate with respect to the assets or projects of the Company and
reasons for realization if the Company makes a profit estimate for its assets or projects which is still in
progress during the Reporting Period
□Applicable N/A
II. Appropriation of non-operating funds of the Listed Company by the controlling
shareholder and other related parties
Applicable □ N/A
In RMB0’000
Balance
New Total
Proportio Proportio as of the Estimate
Type of appropriate repayment Closin Estimate Estimate
Shareholders Reason for Openin n of the n of the disclosur d
related Appropriatio d amount s during g d d
or related appropriatio g latest latest e date of repaymen
relationshi n period during the the balanc repaymen repaymen
parties n balance audited audited the t time
p Reporting Reporting e t method t amount
net assets net assets annual (month)
Period Period
report
82
Mango Excellent Media Co., Ltd. Annual Report 2022
Shanghai
Mamma Mia Borrowings
Interactive for Cash
May
Entertainme Others 6 years production 262.98 0 0.00% 30 232.98 0.00% 222.98 settlemen 222.98
2026
nt and t
Technology operation
Co., Ltd.
Total 262.98 0 0.00% 30 232.98 0.00% 222.98 222.98
In order to support the business development of Shanghai Mamma Mia Interactive Entertainment
Technology Co., Ltd. (“Mamma Mia”) which was originally a wholly-owned subsidiary of Happy News,
Relevant decision procedures
Mamma Mia would be supported with liquidity from Happy News through Happy News’ internal
approval and decision-making process.
Reasons for new appropriation of non-operating
funds by controlling shareholders and other related
parties and description of the responsible persons’ N/A
accountability and proposed measures by the Board
of Directors in the current period
In December 2016, Happy News transferred 70% of the equity shares of Mamma Mia externally (to
Reasons for failure to settle appropriated non- noncontrolling shareholders and their affiliates), so that Mamma Mia was no longer included in the scope
operating funds as planned, and description of of consolidation of Happy News. At present, Happy News still holds 24.25% of the equity shares of
accountability and proposed measures by the Board Mamma Mia. In order to ensure stable development of Mamma Mia, Happy News and Mamma Mia
of Directors in the current period signed Repayment Plan, which stipulates monthly repayment of RMB 50,000 since January 2022, until
the loan is paid off.
Pan-China Certified Public Accountants LLP believes that the summary sheet prepared by management of
Mango Excellent Media complies with the provisions of Guideline No. 8 on Regulation of Listed
Companies – Regulatory Requirements on Fund Transfer and External Guarantee of Listed Companies
Special review opinions on appropriation of funds
(CSRC Announcement (2022) No. 26) and Guideline No. 1 on Self-discipline Regulation of Companies
given by accounting firm
Listed at of the Shenzhen Stock Exchange – Business Handling (Revised in February 2023) (SZS (2023)
No. 135) in all material aspects, truly reflecting appropriation of non-operating funds and transfer of other
related capitals of Mango Excellent Media in 2022.
Reasons for inconsistency between appropriation of
non-operating funds by the controlling shareholder
N/A
and other related parties disclosed in the Company’s
annual report and that in the special audit opinion
III. External Guarantees in Violation of Regulations
□Applicable N/A
The Company has no external guarantees in violation of regulations during the Reporting Period.
IV. Explanations from the Board of Directors for the “Modified Auditor’s Report” Issued
Most Recently
□Applicable N/A
V. Explanations from the Board of Directors, the Board of Supervisors, the Independent
Directors (if any) for the “Modified Auditor’s Report” Issued by the Engaged Accounting
Firm During the Reporting Period
□Applicable N/A
VI. Explanation from the Board of Directors for Accounting Policies and Accounting
Estimate Change and Significant Accounting Mistake Correction
□Applicable N/A
83
Mango Excellent Media Co., Ltd. Annual Report 2022
VII. Explanation for Changes in the Scope of Consolidated Financial Statements Comparing
with Those in Prior Year
Applicable □N/A
Changsha Xingmang Artist Culture Communication Partnership, Changsha Xingzhimang Entertainment Media Co., Ltd.,
Changsha Xingmang Interactive Entertainment Media Partnership (Limited Partnership), and Hunan Immersion Technology Co.,
Ltd. were newly established during the Reporting Period. See “VIII. Changes in Scope of Consolidation” under “Section X
Financial Report” for details.
VIII. Engagement and Dismissal of the Accounting Firm
Current certified public accountants
Domestic certified public accountants Pan-China Certified Public Accountants LLP
Remuneration paid to the domestic certified public accountants
198
(in RMB0’000)
Audit period of the domestic accounting firm 7
Name of the engaged certified public accountants ZHENG Shengjun and HU Jian
Audit period of the engaged certified public accountants 1 year for ZHENG Shengjun and 1 years for HU Jian
Whether the certified public accountant is changed
□Yes No
Description of engaging certified public accountants, financial adviser, or sponsor for internal control
□Applicable N/A
IX. Delisting Subsequent to the Disclosure of the Annual Report
□Applicable N/A
X. Bankruptcy and Reorganization
□Applicable N/A
The Company has no matters with respect to bankruptcy and reorganization during the Reporting Period.
XI. Material Litigation or Arbitration
□Applicable N/A
The Company involves in no material litigation or arbitration during the year.
XII. Penalty and Rectification
□Applicable N/A
The Company has no penalty and rectification during the Reporting Period.
XIII. Integrity of the Company and its Controlling Shareholder and Actual Controller
□Applicable N/A
84
Mango Excellent Media Co., Ltd. Annual Report 2022
XIV. Significant Related Party Transactions
1. Related party transactions related to daily operations
Applicable □N/A
Approv
Exceed Available
Proporti ed
Amount the market
Related on of trading Mode of
Related Pricing (in approve price of Disclosur
party Type Content Price similar amount settleme Disclosure index
party principle RMB0’ d similar e date
relationship trading (in nt
000) amount transactio
amount RMB0’
or not ns
000)
Under
Golden common Acceptan
Eagle control of ce of Copyrig Market 55,069 55,069. 66,000. By April 25,
6.07% No 55,069.96
Broadcastin the same labor ht, etc. pricing .96 96 00 transfer 2022
g System actual service
controller Published at
Under http://www.cninfo.
Golden common Advertis com.cn;
Rendering
Eagle control of ing Market 77,552 77,552. 153,900 By April 25, Announcement
of labor 5.66% No 77,552.00
Broadcastin the same release, pricing .00 00 .00 transfer 2022 Title:
service
g System actual etc. Announcement on
controller the Occurrence of
Yunhong Related-party
Company
Communic Acceptan Transactions
materially Advertis
ation ce of Market 18,526 18,526. 23,312. By April 25, Concerning Daily
affected by ing 2.04% No 18,526.33
Technology labor pricing .33 33 00 transfer 2022 Operations in
the actual service
(Guangzho service 2021 and
controller
u) Co., Ltd. Estimation of
Yunhong Related-party
Company
Communic Transactions
materially Rendering Advertis
ation Market 80,483 80,483. 93,250. By April 25, Concerning Daily
affected by of labor ing 5.87% No 80,483.60
Technology pricing .60 60 00 transfer 2022 Operations in
the actual service release
(Guangzho 2022
controller
u) Co., Ltd.
MIGU
Rendering
Culture Sharing the Operator Market 216,65 216,651 202,600 By 216,651.2 April 25,
of labor 15.81% Yes
Technology key manager revenue pricing 1.25 .25 .00 transfer 5 2022
service
Co., Ltd.
448,283 539,062
Total -- -- -- -- -- -- -- --
.14 .00
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
Related amount of value of Transfer Trading
Related Pricing Mode of Disclosure
party Type Content transferred transferred price profit or loss Disclosure index
Party principle settlement date
relationship assets assets (RMB0’000) (RMB0’000)
(RMB0’000) (RMB0’000)
Mango Parent Sales 33.33% of Appraisal 28,600 28,600 28,600 Settlement 0 June 25, Announcement on
85
Mango Excellent Media Co., Ltd. Annual Report 2022
Media company of the equity value by 2022 the Completion of
Co., Ltd. equity in transferring Recapitalization
Xiaomang accounts and Share Increase
Electronic and Related
Commerce Transaction by
Co., Ltd. Wholly-owned
Subsidiary
disclosed on
www.cninfo.com.cn
Reasons for significant difference
between transfer price and carrying None.
amount or appraisal value (if any)
Impact on the Company’s operating
No impact on the consolidated net profit of the Company
results and financial situation
The performance realization during the
Reporting Period if the related party
None.
transaction involves performance
agreement
3. Related party transactions related to joint external investment
□Applicable N/A
The Company has no related party transactions involving joint external investments during the Reporting Period.
4. Credits and debits with related parties
Applicable □N/A
Whether there are non-operating credits and debits with related parties
Yes □No
Credits due from related parties
Whether Current Current
Opening Current Closing
there is any increased recovered
Related Reason of balance Interest interest balance
Relation non- amount amount
party formation (RMB0’00 rate (RMB0’00 (RMB0’00
operating (RMB0’00 (RMB0’00
0) 0) 0)
fund use 0) 0)
Controlled
Xiaoxiang
by the Accounts
Film Group No 5.08 5.08 0
same actual current
Co., Ltd.
controller
Mango
Controlled
Media Co.,
by the Accounts
Ltd. and its No 92.12 0.77 92.89
same actual current
subsidiarie
controller
s
Hunan
Mango
Accounts
Entertainm Subsidiary No 8,000 8,000
current
ent Co.,
Ltd.
Hunan
Happy
Sunshine Profit
Subsidiary No 30,000 30,000
Interactive distribution
Entertainm
ent Media
86
Mango Excellent Media Co., Ltd. Annual Report 2022
Co., Ltd.
Shanghai
Profit
EE-Media Subsidiary No 25,000 25,000 0
distribution
Co., Ltd.
Impact of related-party
creditor’s rights on the
Company’s operating No material impact
results and financial
status
Debts due to related-party
Current Current
Opening Current Closing
increased recovered
Related Reason of balance interest balance
Relation amount amount Interest rate
party formation (RMB0’00 (RMB0’00 (RMB0’00
(RMB0’00 (RMB0’00
0) 0) 0)
0) 0)
5. Transactions with finance companies having related party relationship
□Applicable N/A
The Company has no deposit, loan, credit facility or other financial business with finance companies having related-party
relationship and related parties.
6. Transactions between finance companies controlled by the Company and related parties
□Applicable N/A
Finance companies controlled by the Company have no deposit, loan, credit facility or other financial business with related parties.
7. Other significant related party transactions
□Applicable N/A
The Company has no other significant related-party transactions during the Reporting Period.
XV. Significant Contracts and Performances Thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
□Applicable N/A
The Company has no trusteeship during the Reporting Period.
(2) Contracting
□Applicable N/A
The Company has no contracting during the Reporting Period.
(3) Leasing
Applicable □N/A
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Mango Excellent Media Co., Ltd. Annual Report 2022
Lease description
1. The Company as a lessee
(1) For relevant details of the right-of-use assets, see Article VII (14) of “Section X Financial Report”.
(2) Current lease-related profit and loss and cash flow
Unit: RMB
Amount in the same period
Item Current amount
last year
Interest expenditure on lease liabilities 9,301,906.56 5,819,271.54
Income from sub-leasing of right-of-use assets 7,990,890.37 9,341,266.04
Total lease-related cash outflow 64,204,383.75 64,826,084.84
(3) For the maturity time analysis of lease liabilities and the corresponding liquidity risk management, see Article X of
“Section X Financial Report” for details.
2. The Company as a lessor
Operating lease
(1) Lease income
Unit: RMB
Amount in the same period
Item Current amount
last year
Income from lease 11,353,234.87 19,143,126.43
(2) Operating lease assets
Unit: RMB
Closing amount of the last
Item Closing amount
year
Fixed assets 22,747,860.63 34,070,036.19
Right-of-use assets 4,732,738.24 6,884,092.38
Investment real estate properties 50,786,391.83
Subtotal 78,266,990.70 40,954,128.57
For details of operating leased-out fixed assets, see Article VII (13) of “Section X Financial Report”
(3) Undiscounted lease receipt that will be received in the future
Unit: RMB
Closing amount of the last
Remaining period Closing amount
year
Within 1 year 10,623,126.18 15,399,807.10
1-2 years 11,238,554.40 13,592,258.70
2-3 years 9,883,531.00 12,598,737.80
3-4 years 8,326,777.08 10,176,167.90
4-5 years 6,061,978.71 8,561,441.20
5 years later 5,370,943.39 11,423,322.10
Total 51,504,910.76 71,751,734.80
Items that bring profits or losses to the Company amounting to over 10% of the Company’s total profits in the Reporting Period
□Applicable N/A
88
Mango Excellent Media Co., Ltd. Annual Report 2022
During the Reporting Period, there were no leasing items that bring profits or losses to the Company reached more than 10% of the
Company’s total profits in the Reporting Period.
2. Significant guarantee
Applicable □N/A
The Company has no significant 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
Own funds 214,000 140,000 0 0
product
Bank financing
Raised funds 216,000 129,500 0 0
product
Total 430,000 269,500 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.
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
On July 30, 2022, the Company disclosed the “Informative Announcement on Free Transfer of Controlling Shareholder’s Equity
and Proposed Change of Actual Controller” (Announcement No.: 2022-032). The Company received a notice from its controlling
shareholder Mango Media that in accordance with an official reply issued by the Hunan Provincial Department of Finance on
matters related to the transformation of Hunan Broadcasting System into an enterprise, Hunan Broadcasting System, the sole
shareholder of Mango Media, intends to transfer the 100% equity in Mango Media it holds to GBS (hereinafter referred to as the
“Free Transfer”). Currently, relevant procedures are being handled for the Free Transfer. After the transfer is completed, the
Company’s controlling shareholder will still be Mango Media, while the Company’s actual controller will be changed from Hunan
Broadcasting System to Hunan State-owned Cultural Assets Supervision and Administration Commission, which performs the
89
Mango Excellent Media Co., Ltd. Annual Report 2022
investor’s duties to GBS as authorized by the Hunan Provincial People’s Government. Hunan Provincial State-owned Cultural
Assets Supervision and Administration Commission. The Free Transfer is an important initiative of GBS (Hunan Broadcasting
System) to implement decisions and deployment related to cultural system reform made by the Hunan Provincial Committee of the
CPC and the Hunan Provincial People’s Government, which is conductive to the further optimization of the layout structure of
Hunan’s cultural enterprises, the promotion of resource elements to be gathered for backbone cultural enterprises, and the large-
scale and group-type development. GBS is an integrated operation company of Hunan Broadcasting System. The management
mode of Hunan Broadcasting System and GBS is “one Party committee, two organs and all-in-one operation”. This change of
control will not have any adverse impact on the Company’s normal production and operation, nor will it do any damage to the
interests of the Company and its small and medium shareholders. On November 30, 2022, the Company disclosed the
“Informative Announcement on Completion of Industrial and Commercial Registration Information Change for Free Transfer of
Controlling Shareholder’s Equity and Completion of Change of Actual Controller” (Announcement No.: 2022-049), and the
industrial and commercial registration information change has been completed for the above Free Transfer, and the actual
controller of the Company has been changed into the Hunan Cultural Assets Commission.
XVII. Description of Significant Matters of the Company’s Subsidiaries
□Applicable N/A
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Mango Excellent Media Co., Ltd. Annual Report 2022
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
Capitaliza
Proporti New Bonus tion of Proportio
Number Others Sub-total Number
on shares shares capital n
reserve
I. Restricted share 939,364,161 50.21% 0 0 0 -90,343,304 -90,343,304 849,020,857 45.38%
1. Shareholdings
0 0.00% 0 0 0 0 0 0 0.00%
by the state
2. Shareholdings
by the state-
909,248,601 48.60% 0 0 0 -60,228,869 -60,228,869 849,019,732 45.38%
owned legal
persons
3. Other
shareholdings by
30,115,560 1.61% 0 0 0 -30,114,435 -30,114,435 1,125 0.00%
domestic
investors
Including:
shareholdings by
30,114,435 1.61% 0 0 0 -30,114,435 -30,114,435 0 0.00%
domestic legal
persons
Shareholdings by
domestic natural 1,125 0.00% 0 0 0 0 0 1,125 0.00%
persons
4. Shareholdings
by foreign 0 0.00% 0 0 0 0 0 0 0.00%
investors
Including:
shareholdings by
0 0.00% 0 0 0 0 0 0 0.00%
overseas legal
persons
Shareholdings by
overseas natural 0 0.00% 0 0 0 0 0 0 0.00%
persons
II. Unrestricted
931,356,654 49.79% 0 0 0 90,343,304 90,343,304 1,021,699,958 54.62%
share
1. RMB ordinary
931,356,654 49.79% 0 0 0 90,343,304 90,343,304 1,021,699,958 54.62%
share
2. Domestic listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign share
3. Overseas listed 0 0.00% 0 0 0 0 0 0 0.00%
91
Mango Excellent Media Co., Ltd. Annual Report 2022
foreign share
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total 1,870,720,815 100.00% 0 0 0 0 0 1,870,720,815 100.00%
Reasons for share changes
Applicable □N/A
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. at a price of RMB49.81 per share. 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. On
February 24, 2022, the aforementioned lock-up shares were released and became available for trading. The restricted shares of the
Company decreased by 90,343,304 shares and unrestricted shares increased by 90,343,304 shares, so the total share capital remain
unchanged.
Approval of share changes
□Applicable N/A
Description of registration of share changes
□Applicable N/A
Effect of share changes on financial indicators in the most recent year and the most recent period, such as basic earnings per share,
diluted earnings per share, net assets per share attributable to the Company’s shareholders of ordinary shares
□Applicable N/A
Other information that the Company deemed as necessary, or security regulators require to be disclosed
□Applicable N/A
2. Restricted share changes
Applicable □N/A
Unit: share
Increase in Restricted
Opening Closing
Name of restricted shares released Reasons for Date of release
restricted restricted
shareholders shares for the for the current restriction of restriction
shares shares
current period period
The lock-up
period was
Additional
expired on July
restricted
12, 2021, but
shares in
Mango Media the listing and
849,019,732 0 0 849,019,732 offering of
Co., Ltd. circulating
shares for
procedures of
purchasing
the restricted
assets
shares are not
applied for.
Additional As the lock-up
restricted period was
Zhongyi shares in expired, these
Capital Holding 60,228,869 0 60,228,869 0 offering of A- shares became
Group Limited share shares to available for
specific persons trading on
in 2020 February 24,
92
Mango Excellent Media Co., Ltd. Annual Report 2022
2022
Industrial and
Commercial
As the lock-up
Bank of China Additional
period was
Limited - restricted
expired, these
Lombarda shares in
shares became
China Times 7,428,228 0 7,428,228 0 offering of A-
available for
Pioneer Stock share shares to
trading on
Promoter specific persons
February 24,
Securities in 2020
2022
Investment
Fund
Shanghai
Pudong
Development
Bank Co., Ltd – As the lock-up
Additional
Lombarda period was
restricted
China expired, these
shares in
Innovation shares became
4,416,784 0 4,416,784 0 offering of A-
Future 18- available for
share shares to
month Closed trading on
specific persons
Operation February 24,
in 2020
Hybrid 2022
Securities
Investment
Fund
China
Everbright As the lock-up
Additional
Bank Co., Ltd.- period was
restricted
Xingquan expired, these
shares in
Business Model shares became
3,122,979 0 3,122,979 0 offering of A-
Preferred available for
share shares to
Hybrid trading on
specific persons
Securities February 24,
in 2020
Investment 2022
Fund (LOF)
China
As the lock-up
Merchants Additional
period was
Bank Co., Ltd. restricted
expired, these
- Lombarda shares in
shares became
China Internet 2,810,680 0 2,810,680 0 offering of A-
available for
Pioneer Hybrid share shares to
trading on
Securities specific persons
February 24,
Investment in 2020
2022
Fund
China
Merchants As the lock-up
Additional
Bank Co., Ltd. period was
restricted
- Xingquan expired, these
shares in
Heyi Flexible shares became
2,411,981 0 2,411,981 0 offering of A-
Allocation available for
share shares to
Hybrid trading on
specific persons
Securities February 24,
in 2020
Investment 2022
Fund (LOF)
China Additional As the lock-up
Merchants 2,411,980 0 2,411,980 0 restricted period was
Bank Co., Ltd. shares in expired, these
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Mango Excellent Media Co., Ltd. Annual Report 2022
- Xingquan offering of A- shares became
Herun Hybrid share shares to available for
Securities specific persons trading on
Investment in 2020 February 24,
Fund 2022
Industrial and
Commercial
As the lock-up
Bank of China Additional
period was
Limited - restricted
expired, these
Xingquan shares in
shares became
Green 1,561,489 0 1,561,489 0 offering of A-
available for
Investment share shares to
trading on
Hybrid specific persons
February 24,
Securities in 2020
2022
Investment
Fund (LOF)
Postal Savings As the lock-up
Additional
Bank of China period was
restricted
Co., Ltd.- expired, these
shares in
Lombarda shares became
1,003,814 0 1,003,814 0 offering of A-
China Shuangli available for
share shares to
Debt Securities trading on
specific persons
Investment February 24,
in 2020
Fund 2022
As the lock-up
4,946,500
period of
shares are
4,946,500
additional
shares was
restricted
expired, these
shares in
shares became
offering of A-
available for
share shares to
trading on
specific persons
Others 4,947,625 0 4,946,500 1,125 February 24,
in 2020 and the
2022, and the
left 1,125
left 1,125
shares are
shares are
restricted
restricted
shares to
shares to
directors,
directors,
supervisors and
supervisors and
executives.
executives.
Total 939,364,161 0 90,343,304 849,020,857 -- --
II. Shares issuing and listing
1. Securities issuing during the Reporting Period (excluding preferred shares)
□Applicable N/A
2. Explanation for changes in the Company’s total shares, shareholder structure, and structure of assets
and liabilities
□Applicable N/A
94
Mango Excellent Media Co., Ltd. Annual Report 2022
3. Current shares subject to employee share ownership plan
□Applicable N/A
III. Shareholders and actual controllers
1. Description of the Number of the Company’s shareholders and shares held by them
Unit: share
Total
preferred
Total shareholders
Total
ordinary (if any) with
preferred Total
shareholders recovered
shareholders shareholders
Total ordinary as of the end voting rights
(if any) with (if any)
shareholders as of the month as of the end
52,454 42,332 recovered 0 0 holding 0
of the end of the prior to the of the
voting rights special
period disclosure month prior
as of the end voting right
date of to the
of the shares
annual disclosure
period
report date of
annual
report
Information of shareholders holding 5% or more of shares or top 10 shareholders
Number Pledged, marked or frozen
Nature Closing
of Number of
Name of of Shareholdin sharehol Increase or
restricted unrestricted
shareholders sharehol g ratio ding decrease Status Quantity
shares shares held
der quantity
held
State-
Mango Media owned 1,049,30 849,019,7
56.09% 0 200,280,569
Co., Ltd. legal 0,301 32
person
State-
Zhongyi Capital
owned 131,188,
Holding Group 7.01% 0 0 131,188,792
legal 792
Limited
person
Hunan Caixin State-
Jingguo Equity owned 93,647,8
5.01% 0 0 93,647,857
Investment legal 57
Partnership (LP) person
Hong Kong
Securities
57,013,7
Clearing Others 3.05% 4,980,707 0 57,013,712
12
Company
Limited
China
Merchants Bank
Co., Ltd. -
28,206,6
Xingquan Herun Others 1.51% 5,847,288 0 28,206,669
69
Hybrid
Securities
Investment Fund
China Others 0.93% 17,407,7 -492,617 0 17,407,787
95
Mango Excellent Media Co., Ltd. Annual Report 2022
Merchants Bank 87
Co., Ltd. -
Xingquan Heyi
Flexible
Allocation
Hybrid
Securities
Investment Fund
(LOF)
Industrial and
Commercial
Bank of China
Limited -
Xingquan Green 9,599,50
Others 0.51% -2,982,573 0 9,599,502
Investment 2
Hybrid
Securities
Investment Fund
(LOF)
Industrial Bank
Co., Ltd. -
Xingquan Qushi
9,407,86
Investment Others 0.50% 4,070,419 0 9,407,869
9
Hybrid
Securities
Investment Fund
China
Merchants Bank
Co., Ltd. -
7,880,00
Xingye Xingrui Others 0.42% 6,350,300 0 7,880,000
0
2-Year Hybrid
Securities
Investment Fund
Industrial and
Commercial
Bank of China 7,565,11
Others 0.40% 1,671,233 0 7,565,118
Limited - GF 8
China Securities
Media LOF
Related-party relationship
or concerted action There is no related party relationship or concerted action relationship between Mango Media Co., Ltd. as
relationship among the the controlling shareholder of the Company and other top 10 shareholders; we are not aware whether or
aforementioned 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
None
waiver of voting rights
regarding above
shareholders
Shareholdings of top 10 unrestricted shareholders
Type
Name of shareholders Number of unrestricted shares held at the end of the reporting period
Type Number
RMB ordinary
Mango Media Co., Ltd. 200,280,569
shares
Zhongyi Capital Holding 131,188,792 RMB ordinary
96
Mango Excellent Media Co., Ltd. Annual Report 2022
Group Limited shares
Hunan Caixin Jingguo
RMB ordinary
Equity Investment 93,647,857
shares
Partnership (LP)
Hong Kong Securities RMB ordinary
57,013,712
Clearing Company Limited shares
China Merchants Bank Co.,
Ltd. - Xingquan Herun RMB ordinary
28,206,669
Hybrid Securities shares
Investment Fund
China Merchants Bank Co.,
Ltd. - Xingquan Heyi
RMB ordinary
Flexible Allocation Hybrid 17,407,787
shares
Securities Investment Fund
(LOF)
Industrial and Commercial
Bank of China Limited -
RMB ordinary
Xingquan Green Investment 9,599,502
shares
Hybrid Securities
Investment Fund (LOF)
Industrial Bank Co., Ltd. -
Xingquan Qushi Investment RMB ordinary
9,407,869
Hybrid Securities shares
Investment Fund
China Merchants Bank Co.,
Ltd. - Xingye Xingrui 2- RMB ordinary
7,880,000
Year Hybrid Securities shares
Investment Fund
Industrial and Commercial
Bank of China Limited - GF RMB ordinary
7,565,118
China Securities Media shares
LOF
Explanation for related-
party relationship or
concerted actions between There is no related party relationship or concerted action relationship between Mango Media Co., Ltd. as
top 10 unrestricted the controlling shareholder of the Company and other top 10 unrestricted outstanding shareholders; we are
outstanding shareholders, not aware whether or not there is a related-party relationship or concerted action relationship among top 10
and between top 10 unrestricted outstanding shareholders and between top 10 unrestricted outstanding shareholders and top 10
unrestricted outstanding shareholders.
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. Controlling shareholder of the Company
Nature of the controlling shareholder: Local state-owned holding company
Type of the controlling shareholder Legal person
Controlling Legal Date of incorporation Organization code Principal activities
97
Mango Excellent Media Co., Ltd. Annual Report 2022
shareholder representative/responsi
ble 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
businesses such as
deposit absorption,
Mango Media Co., Ltd. ZHANG Huali July 10, 2007 914300006707880875 fund collection,
entrusted loans, notes,
and loans issuance);
advertising planning,
production and
operation; multimedia
technology
development and
operation. (Projects
required for legal
approval shall be
operated on the
premise of being
approved by relevant
authorities)
Change of the controlling shareholder during the Reporting Period
□Applicable N/A
There was no change of the controlling shareholder of the Company during the Reporting Period.
3. Actual controller and its acting-in-concert parties of the Company
Nature of the actual controller: local state capital management institution
Type of the controlling shareholder: legal person
Legal
Actual controller representative/responsi Date of incorporation Organization code Principal activities
ble person
Hunan State-owned Perform the
Cultural Assets responsibilities of
Supervision and —— May 27, 2015 —— provincial state-owned
Administration cultural enterprise as a
Commission contributor
Equity of other
domestic and oversea
listed companies
Directly holding 16.66% of shares in Hunan TV & Broadcast Intermediary Co., Ltd.
controlled by the actual
controller during the
Reporting Period
Change of the actual controller during the Reporting Period
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Mango Excellent Media Co., Ltd. Annual Report 2022
Applicable □N/A
Original actual controller Hunan Broadcasting System
Hunan State-owned Cultural Assets Supervision and
New actual controller
Administration Commission
Date of change November 30, 2022
Suggestive Announcement on Transfer of Shares by the
Controlling Shareholder Free of Charge and Proposed Change
of the Actual Controller (No. 2022-032) and Suggestive
Designated website for query index Announcement on Completion of Change Registration for
Transfer of Shares by the Controlling Shareholder Free of
Charge and Change of the Actual Controller (No. 2022-049)
disclosed on www.cninfo.com.cn.
Date of disclosure on the designated website July 30, 2022
Block diagram for the ownership and controlling relationship between the Company and the actual controller
Hunan State-owned Cultural Assets Supervision and
Administration Commission
100% shares
Golden Eagle Broadcasting System Co., Ltd.
100 % shares
Mango Media Co., Ltd.
56.09 % shares
Mango Excellent Media Co., Ltd.
\
The Company is controlled by the actual controller through trust funds or other asset management methods
□Applicable N/A
4. The Company’s controlling shareholder or top 1 shareholder and its acting-in-concert parties pledged
more than 80% in total of the Company’s shares held by them
□Applicable N/A
5. Other institutional shareholders owning over 10% of shares
□Applicable N/A
6. Restrictions on shareholding reduction of the controlling shareholder, actual controller, restructuring
parties, and other commitment subjects
□Applicable N/A
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Mango Excellent Media Co., Ltd. Annual Report 2022
IV. Specific implementation of share repurchases during the Reporting Period
Implementation progress of share repurchase
□Applicable N/A
Progress of reducing repurchased shares by means of centralized auction trading
□Applicable N/A
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Mango Excellent Media Co., Ltd. Annual Report 2022
Section VIII Preference Shares
□Applicable N/A
The Company has no preferred shares during the Reporting Period.
101
Mango Excellent Media Co., Ltd. Annual Report 2022
Section IX Bonds
□Applicable N/A
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Mango Excellent Media Co., Ltd. Annual Report 2022
Section X Financial Report
I. Auditor’s Report
Audit opinion Unmodified Opinion
Signing date of audit report April 20, 2023
Auditor Pan-China Certified Public Accountants LLP
Audit report document No. Tian Jian Shen (2023) 2-208
Name of certified public accountants ZHENG Shengjun and HU Jian
Auditor’s Report
To all shareholders of Mango Excellent Media Co., Ltd.:
I. Audit opinion
We have audited the financial statements of Mango Excellent Media Co., Ltd. (“Mango Excellent Media”), which comprise the
consolidated and the parent company’s balance sheets as at December 31, 2022, 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,
2022, 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 media retail, etc. In 2022, the operating income of Mango Excellent Media amounted to
RMB13,704,339,700, of which the operating income from the segments including new media platform operation and new media
interactive entertainment content production amounted to RMB11,535,720,100, accounting for 84.18 % thereof.
As the operating income is one of Mango Excellent Media’s KPIs, there may be an inherent risk that the management of Mango
Excellent Media (hereinafter referred to as “management”) may recognize the revenue inappropriately to achieve specific objectives
or expectations. Meanwhile, revenue recognition also needs complex information systems and significant management judgement.
Therefore, we identified revenue recognition as a key audit matter.
2. Audit response
For revenue recognition, our audit procedures include, inter alia:
(1) Understand the key internal controls related to revenue recognition, evaluate the design of those controls, determine whether
they are implemented, and test the operational effectiveness of the relevant internal controls;
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Mango Excellent Media Co., Ltd. Annual Report 2022
(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), Note III (XVII) and Note V (I) 8 and Note V (I) 15 to the financial
statements.
As of December 31, 2022, the carrying amount of Mango Excellent Media’s content copyrights such as online information
dissemination rights, screenplays, and film and television series was RMB8,137,597,000; of which, intangible assets were
RMB6,625,457,600 and stocks were RMB1,512,139,400.
The management makes significant judgment to evaluate the carrying amount of content copyrights such as online information
dissemination rights, screenplays, and film and television series. In making such evaluation, the management considers all possible
factors that may affect the future broadcasting, production and distribution plans of the content copyrights such as the online
information dissemination rights, screenplays and film and television series, the saleable or booking prices of film and television
series, the discount rate and the current market environment to judge the expectation of obtaining future cash flows. The amount of
content copyrights such as online information dissemination rights, screenplays, and film and television series is material, and
involves significant management judgments, therefore, we identify the carrying amount of content copyrights such as online
information dissemination rights, screenplays, and film and television series as a key audit matter.
2. Audit response
For the carrying amount of content copyrights such as online information dissemination rights, screenplays, and film and
television series, our audit procedures include, inter alia:
(1) Understand the key internal controls related to content copyrights such as online information dissemination rights,
screenplays, and film and television series, evaluate the design of those controls, determine whether they are implemented, and test
the operational effectiveness of the relevant internal controls;
(2) Know and evaluate the reasonableness of amortization policies of online information dissemination rights, and implement
computer-aided audit procedure for amortization information system of online information dissemination rights;
(3) Evaluate the reasonableness of accounting policies related to content copyrights such as online information dissemination
rights, screenplays, and film and television series by comparing relevant accounting standards and industry practice benchmarks, and
test the management’s assessment of the recoverable amount of content copyrights such as online information dissemination rights,
screenplays, and film and television series on a 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
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Mango Excellent Media Co., Ltd. Annual Report 2022
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:
(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.
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Mango Excellent Media Co., Ltd. Annual Report 2022
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
(IV) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Mango
Excellent Media’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the Mango Excellent Media to cease to continue as a going concern.
(V) Evaluate the overall presentation, structure, and content of the financial statements and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation;
(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities
within the Mango Excellent Media to express an opinion on the financial statements. We are responsible for the direction,
supervision, and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements for the current period and are therefore key audit matters. We describe these matters in our
audit report unless laws or regulations preclude public disclosure of the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Pan-China Certified Public Accountants LLP Certified Public Accountant: ZHENG Shengjun
(Engagement Partner)
Hangzhou, China Certified Public Accountant: HU Jian
April 20, 2023
II. Financial Statements
Statements in notes to the financial statements are dominated in RMB.
1. Consolidated balance sheet
Prepared by: Mango Excellent Media Co., Ltd.
December 31, 2022
In RMB
Item December 31, 2022 January 1, 2022
106
Mango Excellent Media Co., Ltd. Annual Report 2022
Current Assets:
Cash and bank balances 9,686,689,374.39 6,974,465,151.81
Balances with clearing agencies
Placements with banks and other
financial institutions
Held-for-trading financial assets 2,695,000,000.00 3,410,000,000.00
Derivative financial assets
Notes receivable 1,424,539,500.76 673,742,339.23
Accounts receivable 3,235,431,528.25 3,113,742,914.88
Receivable financing 48,185,442.19 137,800,000.00
Prepayments 1,650,218,511.76 1,834,350,013.20
Premium receivable
Amounts receivable under reinsurance
contracts
Reinsurer’s share of insurance contract
reserves
Other receivables 54,351,283.13 40,568,403.37
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 1,600,131,838.66 1,689,546,700.79
Contract assets 929,403,936.51 903,053,743.61
Held-for-sale assets
Non-current assets due within one year
Other current assets 110,758,833.97 123,539,219.25
Total current assets 21,434,710,249.62 18,900,808,486.14
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 4,123,864.73 23,882,517.37
Other investments in equity
instruments
Other non-current financial assets
Investment properties 83,381,033.60
Fixed assets 165,275,869.62 184,450,336.98
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets 172,188,222.02 210,304,495.42
Intangible assets 6,965,069,584.73 6,443,675,155.95
Development expenditure 101,832,746.23 232,522,753.24
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Mango Excellent Media Co., Ltd. Annual Report 2022
Goodwill
Long-term prepaid expenses 88,074,795.05 113,847,481.21
Deferred tax assets
Other non-current assets 35,017,190.95 1,260,178.59
Total non-current assets 7,614,963,306.93 7,209,942,918.76
Total assets 29,049,673,556.55 26,110,751,404.90
Current liabilities:
Bank borrowings 1,057,932,476.80 39,786,903.37
Loans from the central bank
Taking from banks and other financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,641,001,844.25 921,504,704.91
Accounts payable 4,836,096,826.84 4,960,935,241.83
Receipts in advance
Contract liabilities 1,044,740,162.71 1,327,294,063.85
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 988,921,346.26 980,394,114.20
Taxes payable 203,562,305.87 123,474,589.72
Other payables 130,945,241.48 149,086,160.61
Including: Interest payable
Dividends payable
Fees and commissions payable
Amounts payable under reinsurance
contracts
Held-for-sale liabilities
Non-current liabilities due within one
51,183,707.98 43,098,562.04
year
Other current liabilities 105,651,142.25 339,035,557.99
Total current liabilities 10,060,035,054.44 8,884,609,898.52
Non-current liabilities:
Insurance contract reserves
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 131,515,067.86 169,643,622.50
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Mango Excellent Media Co., Ltd. Annual Report 2022
Long-term payables
Long-term employee benefits payable
Estimated liabilities 9,038,875.00 13,815,868.00
Deferred income 42,775,997.77 45,517,771.81
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 183,329,940.63 228,977,262.31
Total liabilities 10,243,364,995.07 9,113,587,160.83
Owner’s equity:
Share capital 1,870,720,815.00 1,870,720,815.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve 9,546,797,532.04 9,244,386,503.55
Less: Treasury shares
Other comprehensive income 157,436.90 -13,783.18
Special reserve
Surplus reserve 126,108,937.21 105,025,383.29
General risk reserve
Undistributed profit 7,306,930,115.63 5,746,281,439.57
Total owners’ equity attributable to
18,850,714,836.78 16,966,400,358.23
equity holders of the parent company
Minority interests -44,406,275.30 30,763,885.84
Total owners’ equity 18,806,308,561.48 16,997,164,244.07
Total liabilities and owners’ equity 29,049,673,556.55 26,110,751,404.90
Legal representative: CAI Huaijun CFO: ZHANG Zhihong Chief Accountant: TAO Jinyu
2. Balance sheet of the parent company
In RMB
Item December 31, 2022 January 1, 2022
Current Assets:
Cash and bank balances 536,508,258.51 593,199,335.20
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Receivable financing
Prepayments 23,629.23 746,648.08
Other receivables 380,020,000.00 330,099,116.90
Including: Interest receivable
Dividends receivable 300,000,000.00 250,000,000.00
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 4,739,926.06 2,989,471.09
109
Mango Excellent Media Co., Ltd. Annual Report 2022
Total current assets 921,291,813.80 927,034,571.27
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 11,976,375,839.55 11,976,375,839.55
Other investments in equity
instruments
Other non-current financial assets
Investment properties
Fixed assets 438,682.49 852,797.16
Construction in progress
Bearer biological assets
Oil and gas assets
Right of use assets 7,135,223.31 8,919,029.19
Intangible assets 696,395.36 714,278.56
Development expenditure
Goodwill
Long-term prepaid expenses 3,920,863.29 4,785,543.89
Deferred tax assets
Other non-current assets
Total non-current assets 11,988,567,004.00 11,991,647,488.35
Total assets 12,909,858,817.80 12,918,682,059.62
Current liabilities:
Bank borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable
Receipts in advance
Contract liabilities
Employee benefits payable 54,779,216.00 39,647,064.37
Taxes payable 429,648.09 624,511.69
Other payables 18,721,165.76 8,598,711.22
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one
1,693,962.89 1,524,817.62
year
Others Current liabilities
Total current liabilities 75,623,992.74 50,395,104.90
Non-current liabilities:
Long-term borrowings
110
Mango Excellent Media Co., Ltd. Annual Report 2022
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 5,784,555.83 7,478,518.73
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 5,784,555.83 7,478,518.73
Total liabilities 81,408,548.57 57,873,623.63
Owner’s equity:
Share capital
Other equity instruments 1,870,720,815.00 1,870,720,815.00
Including: Preference shares
Perpetual bonds
Capital reserve 10,584,782,807.56 10,584,782,807.56
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 126,108,937.21 105,025,383.29
Undistributed profit 246,837,709.46 300,279,430.14
Total owners’ equity 12,828,450,269.23 12,860,808,435.99
Total liabilities and owners’ equity 12,909,858,817.80 12,918,682,059.62
3. Consolidated income statement
In RMB
Item 2022 2021
I. Total operating income 13,704,339,712.31 15,355,863,482.07
Including: Operating income 13,704,339,712.31 15,355,863,482.07
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 12,064,532,034.44 13,268,399,151.99
Including: Operating cost 9,067,033,490.99 9,905,462,770.82
Interest expenses
Fee and commission expenses
Surrenders
Claims and policyholder
benefits (net of amounts recoverable
from reinsurers)
Net withdrawal of insurance
contract reserves
Insurance policyholder
dividends
111
Mango Excellent Media Co., Ltd. Annual Report 2022
Expenses for reinsurance
accepted
Taxes and surcharges 90,402,933.42 26,892,490.52
Selling expenses 2,179,889,009.35 2,469,328,212.64
General and administrative
623,943,425.86 695,934,611.78
expenses
R&D expenses 234,726,198.48 271,991,403.40
Financial expenses -131,463,023.66 -101,210,337.17
Including: Interest expenses 19,950,698.57 8,449,934.71
Interest income -188,926,813.85 125,145,189.95
Add: Other income 119,207,987.73 123,334,219.55
Investment income (loss is
132,976,709.08 37,229,498.93
indicated by “-”)
Including: Income from
investments in associates and joint -2,576,746.69 999,547.86
ventures
Income from
derecognition of financial assets
measured at amortized cost
Foreign exchange gains (loss is
indicated by “-”)
Net exposure hedging income
(loss is indicated by “-”)
Gains from changes in fair value
(loss is indicated by “-”)
Impairment losses of credit (loss
-118,092,496.49 -43,921,867.09
is indicated by “-”)
Impairment losses of assets (loss
-49,739,874.55 -68,086,394.50
is indicated by “-”)
Gains from disposal of assets
891,438.70 -85,941.70
(loss is indicated by “-”)
III. Operating profit (loss is indicated by
1,725,051,442.34 2,135,933,845.27
“-”)
Add: Non-operating revenue 45,620,655.36 21,850,496.77
Less: Non-operating expenses 4,384,991.00 43,300,269.96
IV. Total profit (total losses are indicated
1,766,287,106.70 2,114,484,072.08
by “-”)
Less: Income tax expense 120,303.42 4,357.00
V. Net profit (net loss is indicated by “-
1,766,166,803.28 2,114,479,715.08
”)
(I) Categorized by the nature of
continuing operation
1. Net profit from continuing
1,766,166,803.28 2,113,148,651.46
operations (net loss is indicated by “-”)
2. Net profit from discontinued
1,331,063.62
operations (net loss is indicated by “-”)
(II) Categorized by ownership:
1. Net profit attributable to
1,824,925,935.93 2,114,090,171.85
shareholders of the parent company
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Mango Excellent Media Co., Ltd. Annual Report 2022
2. Profit or loss attributable to
-58,759,132.65 389,543.23
minority interests
VI. Other comprehensive income, net of
171,220.08 -11,023.81
tax
Other comprehensive income
attributable to owners of the parent 171,220.08 -11,023.81
company, net of tax
(I) Other comprehensive income
that cannot be subsequently reclassified
to profit or loss
1. Changes from re-measurement
of defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
3. Changes in fair value of other
investments in equity instruments
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
171,220.08 -11,023.81
that will be reclassified to profit or loss
1. Other comprehensive income
that will be reclassified to profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of other debt investments
5. Reserve for cash flow hedges
6. Translation differences of
financial statements denominated in 171,220.08 -11,023.81
foreign currencies
7. Others
Other comprehensive income
attributable to minority interests, net of
tax
VII. Total comprehensive income 1,766,338,023.36 2,114,468,691.27
Total comprehensive income
attributable to owners of the parent 1,825,097,156.01 2,114,079,148.04
company
Total comprehensive income
-58,759,132.65 389,543.23
attributable to minority interests
VIII. Earnings per share
(I) Basic earnings per share 0.98 1.17
(II) Diluted earnings per share 0.98 1.17
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 the prior period.
Legal representative: CAI Huaijun CFO: ZHANG Zhihong Chief Accountant: TAO Jinyu
4. Income statement of the parent company
In RMB
113
Mango Excellent Media Co., Ltd. Annual Report 2022
Item 2022 2021
I. Operating income 18,867.92 0.00
Less: Operating cost 0.00 0.00
Taxes and surcharges 2,099.24 1,899,087.62
Selling expenses
General and administrative
101,887,298.84 99,902,232.40
expenses
R&D expenses
Financial expenses -12,545,424.65 -25,837,827.24
Including: Interest expenses 401,132.83 226,451.74
Interest income 12,954,190.78 26,073,238.54
Add: Other income 84,643.52 11,246.72
Investment income (loss is
300,000,000.00 254,810,066.45
indicated by “-”)
Including: Income from
investments in associates and joint
ventures
Income from
derecognition of financial assets
measured at amortized cost (loss is
indicated by “-”)
Net exposure hedging income
(loss is indicated by “-”)
Gains from changes in fair value
(loss is indicated by “-”)
Impairment losses of credit (loss
1,001.18 410.99
is indicated by “-”)
Impairment losses of assets (loss
is indicated by “-”)
Gains from disposal of assets
(loss is indicated by “-”)
II. Operating profit (loss is indicated by
210,760,539.19 178,858,231.38
“-”)
Add: Non-operating revenue 75,000.00 0.08
Less: Non-operating expenses
III. Total profit (loss is indicated by
210,835,539.19 178,858,231.46
“﹣”)
Less: Income tax expense
IV. Net profit (net loss is indicated by “-
210,835,539.19 178,858,231.46
”)
(I) Net profit from continuing
210,835,539.19 178,858,231.46
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
114
Mango Excellent Media Co., Ltd. Annual Report 2022
1. Changes from re-measurement
of defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
3. Changes in fair value of other
investments in equity instruments
4. Changes in fair value of
enterprises’ own credit risks
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss
1. Other comprehensive income
that will be reclassified to profit or loss
under the equity method
2. Changes in fair value of other
debt investments
3. Amounts of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of other debt investments
5. Reserve for cash flow hedges
6. Translation differences of
financial statements denominated in
foreign currencies
7. Others
VI. Total comprehensive income: 210,835,539.19 178,858,231.46
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated statements of cash flows
In RMB
Item 2022 2021
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods
12,819,276,216.45 14,751,013,340.67
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
115
Mango Excellent Media Co., Ltd. Annual Report 2022
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 30,895,444.30 1,996,750.43
Other cash receipts relating to
295,009,300.08 195,137,982.95
operating activities
Sub-total of cash inflows from operating
13,145,180,960.83 14,948,148,074.05
activities
Cash payments for goods purchased
9,214,889,349.53 10,601,434,852.06
and services received
Net increase in loans and advances to
-24,141,357.18
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
1,512,911,054.68 1,652,192,693.42
employees
Payment of various types of taxes 201,026,494.42 161,767,416.65
Other cash payments relating to
1,664,707,164.21 1,995,093,586.73
operating activities
Cash used in operating activities 12,593,534,062.84 14,386,347,191.68
Net cash flows from operating activities 551,646,897.99 561,800,882.37
II. Cash flows from investing activities:
Cash receipts from disposals and
recovery of investments
Cash receipts from investment income 560,366.45
Net cash receipts from disposals of
fixed assets, intangible assets and other 173,531.48 986,465.39
long-term assets
Net cash receipts from disposals of
245,559,897.67
subsidiaries and other business entities
Other cash receipts relating to
14,213,081,382.48 5,491,458,753.41
investing activities
Sub-total of cash inflows from investing
14,213,254,913.96 5,738,565,482.92
activities
Cash payments to acquire or construct
fixed assets, intangible assets and other 187,582,200.09 193,602,527.81
long-term assets
Cash payments to acquire investments
Net increase in pledged loans
receivable
Net cash payments for acquisitions of 1,486,980.09
116
Mango Excellent Media Co., Ltd. Annual Report 2022
subsidiaries and other business entities
Other cash payments relating to
13,371,990,000.00 8,736,000,000.00
investing activities
Sub-total of cash outflows from investing
13,559,572,200.09 8,931,089,507.90
activities
Net cash flows from investment activities 653,682,713.87 -3,192,524,024.98
III. Cash Flows from Financing
Activities:
Cash receipts from investments by
286,000,000.00 4,496,792,425.07
others
Including: Cash received by
subsidiaries from minority shareholders’ 286,000,000.00
investments
Cash receipts from borrowings 1,607,632,088.23 69,731,500.00
Other cash receipts relating to
financing activities
Sub-total of cash inflows from financing
1,893,632,088.23 4,566,523,925.07
activities
Cash repayments of borrowings 39,051,360.40 39,631,527.65
Cash payments for distribution of
dividends or profits or settlement of 245,215,928.90 234,040,696.91
interest expenses
Including: Dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to
64,204,383.75 65,826,408.71
financing activities
Cash used in financing activities 348,471,673.05 339,498,633.27
Net cash flows from financing activities 1,545,160,415.18 4,227,025,291.80
IV. Effect of foreign exchange rate
458,406.76 612,280.98
changes on cash and cash equivalents
V. Net increase in cash and cash
2,750,948,433.80 1,596,914,430.17
equivalents
Add: Opening balance of cash and
6,911,377,914.18 5,314,463,484.01
cash equivalents
VI. Closing balance of cash and cash
9,662,326,347.98 6,911,377,914.18
equivalents
6. Statement of cash flows of the parent company
In RMB
Item 2022 2021
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
17,332,962.40 211,758,714.55
operating activities
Sub-total of cash inflows from operating
17,332,962.40 213,755,464.98
activities
Cash payments for goods purchased
and services received
Cash payments to and on behalf of
52,213,840.99 49,283,696.15
employees
Payment of various types of taxes 2,099.24 1,899,087.70
Other cash payments relating to
26,017,975.33 46,516,142.78
operating activities
117
Mango Excellent Media Co., Ltd. Annual Report 2022
Cash used in operating activities 78,233,915.56 97,698,926.63
Net cash flows from operating activities -60,900,953.16 116,056,538.35
II. Cash flows from investing activities:
Cash receipts from disposals and
304,249,700.00
recovery of investments
Cash receipts from investment income 250,000,000.00 560,366.45
Net cash receipts from disposals of
fixed assets, intangible assets and other
long-term assets
Net cash receipts from disposals of
subsidiaries and other business entities
Other cash receipts relating to
investing activities
Sub-total of cash inflows from investing
250,000,000.00 304,810,066.45
activities
Cash payments to acquire or construct
fixed assets, intangible assets and other 497,131.58 306,134.50
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 investing
497,131.58 4,496,098,235.70
activities
Net cash flows from investment activities 249,502,868.42 -4,191,288,169.25
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 financing
4,496,792,425.07
activities
Cash repayments of borrowings
Cash payments for distribution of
dividends or profits or settlement of 243,193,705.95 231,449,076.43
interest expenses
Other cash payments relating to
2,099,286.00 2,641,478.36
financing activities
Cash used in financing activities 245,292,991.95 234,090,554.79
Net cash flows from financing activities -245,292,991.95 4,262,701,870.28
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
-56,691,076.69 187,470,239.38
equivalents
Add: Opening balance of cash and
593,199,335.20 405,729,095.82
cash equivalents
VI. Closing balance of cash and cash
536,508,258.51 593,199,335.20
equivalents
7. Consolidated statement of changes in owners’ equity
Amount for the current period
In RMB
118
Mango Excellent Media Co., Ltd. Annual Report 2022
2022
Equity attributable to owners of the parent company
Other equity Other
instruments Less: compr
Item Specia Surplu Genera Undistri Minority Total owners’
Share Prefe Perpe Capital Treasu ehensi Othe Sub-
l s l risk buted interests equity
capital rence tual Other reserve ry ve rs total
reserve reserve reserve profits
share bond s shares incom
s s e
9,244, - 105,02 16,966
I. Closing balance of 1,870,72 5,746,28 30,763,8 16,997,164,244.0
386,50 13,783 5,383. ,400,3
the preceding year 0,815.00 1,439.57 85.84 7
3.55 .18 29 58.23
Add: Changes in
accounting policies
Corrections of prior
period errors
Business combination
involving enterprises
under common control
Others
9,244, - 105,02 16,966
II. Opening balance of 1,870,72 5,746,28 30,763,8 16,997,164,244.0
386,50 13,783 5,383. ,400,3
the current year 0,815.00 1,439.57 85.84 7
3.55 .18 29 58.23
III. Changes for the 302,41 21,083 1,884, -
171,22 1,560,64
year (decrease is 1,028. ,553.9 314,47 75,170,1 1,809,144,317.41
0.08 8,676.06
indicated by “-”) 49 2 8.55 61.14
(I) Total 1,825, -
171,22 1,824,92
comprehensive 097,15 58,759,1 1,766,338,023.36
0.08 5,935.93
income 6.01 32.65
(II) Owners’ 302,41 302,41 -
contributions and 1,028. 1,028. 16,411,0 286,000,000.00
reduction in capital 49 49 28.49
1． Ordinary shares 286,000,
286,000,000.00
contributed by owners 000.00
2．Capital
contribution from
holders of other equity
instruments
3. Share-based
payment recognized in
owners’ equity
302,41 302,41 -
4. Others 1,028. 1,028. 302,411,
49 49 028.49
-
21,083 -
243,19
(III) Profit distribution ,553.9 264,277, -243,193,705.95
3,705.
2 259.87
95
21,083 -
1. Transfer to surplus
,553.9 21,083,5
reserve
2 53.92
2. Transfer to general
risk reserve
-
-
3. Distributions to 243,19
243,193, -243,193,705.95
owners (shareholders) 3,705.
705.95
95
4. Others
(IV) Transfers within
owners’ equity
1. Capitalization of
capital reserve
2. Capitalization of
surplus reserve
3. Loss offset by
surplus reserve
119
Mango Excellent Media Co., Ltd. Annual Report 2022
4.Retained earnings
carried forward from
changes in defined
benefit plans
5. Retained earnings
carried forward from
other comprehensive
income
6.Others
(V) Special reserve
1. Transfer to special
reserve in the period
2. Amount utilized in
the period
(VI) Others
9,546, 126,10 18,850 -
IV. Closing balance of 1,870,72 157,43 7,306,93 18,806,308,561.4
797,53 8,937. ,714,8 44,406,2
the current period 0,815.00 6.90 0,115.63 8
2.04 21 36.78 75.30
Amount in prior period
In RMB
2021
Equity attributable to owners of the parent company
Other equity Other
Item instruments Less: compr
Specia Surplu Genera Undist Minority Total owners’
Share Prefe Perp Capital Treasu ehensi Sub- interests equity
l s l risk ributed Others
capital rence etual Other reserve ry ve total
reserve reserve reserve profits
share bond s shares incom
s s e
4,838, - 87,139 3,881, 10,587
I. Closing balance of 1,780,37 33,243,06 10,621,221,246.
937,70 2,759. ,560.1 526,16 ,978,1
the preceding year 7,511.00 1.28 70
6.35 37 4 7.30 85.42
Add: Changes in
accounting policies
Corrections of prior
period errors
Business
combination
involving
enterprises under
common control
Others
4,838, - 87,139 3,881, 10,587
II. Opening balance 1,780,37 33,243,06 10,621,221,246.
937,70 2,759. ,560.1 526,16 ,978,1
of the current year 7,511.00 1.28 70
6.35 37 4 7.30 85.42
III. Changes for the 4,405, - 17,885 1,864, 6,378, -
90,343,3 6,375,942,997.3
year (decrease is 448,79 11,023 ,823.1 755,27 422,17 2,479,175
04.00 7
indicated by “-”) 7.20 .81 5 2.27 2.81 .44
(I) Total - 2,114, 2,114,
389,543.2 2,114,468,691.2
comprehensive 11,023 090,17 079,14
3 7
income .81 1.85 8.04
(II) Owners’ 4,405, 4,495, -
90,343,3 4,492,923,382.5
contributions and 448,79 792,10 2,868,718
04.00 3
reduction in capital 7.20 1.20 .67
1． Ordinary shares 4,405, 4,495, -
90,343,3 4,492,923,382.5
contributed by 448,79 792,10 2,868,718
04.00 3
owners 7.20 1.20 .67
2．Capital
contribution from
120
Mango Excellent Media Co., Ltd. Annual Report 2022
holders of other
equity instruments
3. Share-based
payment recognized
in owners’ equity
4. Others
- -
17,885
(III) Profit 249,33 231,44
,823.1 -231,449,076.43
distribution 4,899. 9,076.
5
58 43
-
17,885
1. Transfer to 17,885
,823.1
surplus reserve ,823.1
5
5
2. Transfer to
general risk reserve
- -
3. Distributions to
231,44 231,44
owners -231,449,076.43
9,076. 9,076.
(shareholders)
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
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 5,746, 16,966
IV. Closing balance 1,870,72 30,763,88 16,997,164,244.
386,50 13,783 5,383. 281,43 ,400,3
of the current period 0,815.00 5.84 07
3.55 .18 29 9.57 58.23
8. Statement of changes in owners’ equity of the parent company
Amount for the current period
In RMB
121
Mango Excellent Media Co., Ltd. Annual Report 2022
2022
Other equity
instruments Other
Item Less:
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
10,584,7
I. Closing balance of 1,870,720,8 105,025, 300,279,430
82,807.5 12,860,808,435.99
the preceding year 15.00 383.29 .14
6
Add: Changes in
accounting policies
Corrections of prior
period errors
Others
10,584,7
II. Opening balance of 1,870,720,8 105,025, 300,279,430
82,807.5 12,860,808,435.99
the current year 15.00 383.29 .14
6
III. Changes for the -
21,083,5
year (decrease is 53,441,720. -32,358,166.76
53.92
indicated by “-”) 68
(I) Total
210,835,539
comprehensive 210,835,539.19
.19
income
(II) Owners’
contributions and
reduction in capital
1． Ordinary shares
contributed by owners
2．Capital
contribution from
holders of other equity
instruments
3. Share-based
payment recognized in
owners’ equity
4. Others
-
21,083,5
(III) Profit distribution 264,277,259 -243,193,705.95
53.92
.87
-
1. Transfer to surplus 21,083,5
21,083,553.
reserve 53.92
92
-
2. Distributions to
243,193,705 -243,193,705.95
owners (shareholders)
.95
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
122
Mango Excellent Media Co., Ltd. Annual Report 2022
changes in defined
benefit plans
5. Retained earnings
carried forward from
other comprehensive
income
6. Others
(V) Special reserve
1. Transfer to special
reserve in the period
2. Amount utilized in
the period
(VI) Others
10,584,7
IV. Closing balance of 1,870,720,8 126,108, 246,837,709
82,807.5 12,828,450,269.23
the current period 15.00 937.21 .46
6
Amount for the prior period
In RMB
2021
Other equity instruments Other
Item Less: Undistri Total
Share Prefere Perpet Capital compreh Special Surplus
Treasury buted Others owners’
capital nce ual Others reserve ensive reserve reserve
shares profit equity
shares bonds income
I. Closing 1,780, 6,179,
87,139,5 370,756, 8,417,60
balance of the 377,51 334,01
60.14 098.26 7,179.76
preceding year 1.00 0.36
Add: Changes in
accounting
policies
Corrections of
prior period
errors
Others
II. Opening 1,780, 6,179,
87,139,5 370,756, 8,417,60
balance of the 377,51 334,01
60.14 098.26 7,179.76
current year 1.00 0.36
III. Changes for
90,343 4,405, -
the year 17,885,8 4,443,20
,304.0 448,79 70,476,6
(Decrease is 23.15 1,256.23
0 7.20 68.12
indicated by “-”)
(I) Total
178,858, 178,858,
comprehensive
231.46 231.46
income
(II) Owners’
90,343 4,405,
contributions 4,495,79
,304.0 448,79
and reduction in 2,101.20
0 7.20
capital
1. Ordinary
90,343 4,405,
shares 4,495,79
,304.0 448,79
contributed by 2,101.20
0 7.20
owners
123
Mango Excellent Media Co., Ltd. Annual Report 2022
2. Capital
contribution
from holders of
other equity
instruments
3. Share-based
payment
recognized in
owners’ equity
4. Others
- -
(III) Profit 17,885,8
249,334, 231,449,
distribution 23.15
899.58 076.43
-
1. Transfer to 17,885,8
17,885,8
surplus reserve 23.15
23.15
2. Distributions - -
to owners 231,449, 231,449,
(shareholders) 076.43 076.43
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
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
124
Mango Excellent Media Co., Ltd. Annual Report 2022
(VI) Others
IV. Closing 1,870, 10,584 12,860,8
105,025, 300,279,
balance of the 720,81 ,782,8 08,435.9
383.29 430.14
current period 5.00 07.56 9
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 849,020,900 shares and unrestricted A-share of 1,021,700,000 shares as of December 31, 2022. 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 15th meeting of the fourth board of directors of the Company on April 20,
2023 for issuance.
Thirty-one 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 VI and Note VII 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.
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.
125
Mango Excellent Media Co., Ltd. Annual Report 2022
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.
6. Method of preparation of consolidated 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.
126
Mango Excellent Media Co., Ltd. Annual Report 2022
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
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
127
Mango Excellent Media Co., Ltd. Annual Report 2022
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liability is recognized. Financial
assets and liabilities are initially measured at fair value. Transaction costs relating to financial assets or liabilities at fair value through
profit or loss are directly recognized in profit or loss for the current period. Transaction costs relating to other kinds of financial
assets or liabilities are included in their initially recognized amount. However, where the accounts that do not contain any significant
financing component or are recognized by the Company without taking into consideration the significant financing components
under the contracts with a term of less than one year upon initial recognition are initially measured at transaction price defined in the
Accounting Standards for Business Enterprises No. 14 —Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains or
losses on financial assets at amortized cost that do not belong to any hedging relationship are recognized in profit or loss for the
current period upon derecognition, reclassification, amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.
Interest, impairment losses or gains and exchange gains or losses calculated using the effective interest method are recognized in
profit or loss for the current period, and other gains or losses are recognized in other comprehensive income. On derecognition, the
cumulative gain or loss previously included in other comprehensive income is removed out from other comprehensive income and
included in profit or loss for the current period.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.
Dividends received (other than those received as recovery of investment cost) are recognized in profit or loss for the current period,
and other gains or losses are recognized in other comprehensive income. On derecognition, the cumulative gain or loss previously
included in other comprehensive income is removed out from other comprehensive income and included in retained earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon, including
interest and dividend income, are recognized in profit or loss for the current period, except the financial assets belonging to any
hedging relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including derivatives
classified as financial liabilities), and financial liabilities directly designated as at fair value through profit or loss. Such financial
liabilities are subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at fair value through
profit or loss arising out of changes in the Company’s credit risk are recognized in other comprehensive income, unless such
treatment will result in or increase any accounting mismatch in profit or loss. Other gains or losses on such financial liabilities,
including interest expenses and changes in fair value not arising out of changes in the Company’s credit risk, are recognized in profit
or loss for the current period, except the financial liabilities belonging to any hedging relationship. On derecognition, the cumulative
gain or loss previously included in other comprehensive income is removed out from other comprehensive income and included in
retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with the Accounting Standards for Business Enterprises No. 23 - Transfer
of Financial Assets.
3) Financial guarantee contracts not falling under items 1) and 2) above, and loan commitments not falling under item 1) above
128
Mango Excellent Media Co., Ltd. Annual Report 2022
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 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
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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 carries out impairment treatment and determines impairment losses of financial assets at amortized cost,
investments in debt instruments at fair value with changes accrued to other comprehensive income, contract assets, lease receivables,
loan commitments other than financial liabilities at fair value with changes accrued to current profit or loss, and financial guarantee
contracts other than financial liabilities at fair value with changes accrued to current profit or loss and other than financial liabilities
arising as a result of the transfer of financial assets that does not meet the criteria for derecognition or that continues being involved
in the financial assets transferred, on the basis of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking into account the possibility of
default. Credit loss is the present value of the difference between all contractual cash flows receivable under the contract and
estimated future cash flows discounted at the original effective interest rate, i.e., the present value of all cash shortage, wherein the
Company’s purchased or originated financial assets that have become credit impaired are discounted at their credit-adjusted effective
interest rate.
With respect to purchased or originated financial assets that have become credit impaired, at the balance sheet date, the
Company recognizes a loss allowance equal to the cumulative amount of changes in lifetime expected credit losses since initial
recognition.
With respect to accounts receivable and contract assets that arise from the transactions regulated under the Accounting Standard
for Business Enterprises No. 14 - Revenue and do not contain any significant financing component or are recognized by the Company
without taking into consideration the significant financing components under the contracts with a term of less than one year, the
Company uses the simple measurement method and recognizes a loss allowance equal to the lifetime expected credit losses.
With respect to financial assets not using the measurement methods stated above, at each balance sheet date, the Company
assesses whether the credit risk has increased significantly since initial recognition, and recognizes a loss allowance equal to the
lifetime expected credit losses if the credit risk has increased significantly since initial recognition, or to the expected credit losses
within the next 12 months if the credit risk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information, and compares the
possibility of default at the balance sheet date with the possibility of default upon initial recognition, to determine whether the credit
risk of the financial instruments has increased significantly since initial recognition.
At the balance sheet date, if the Company determines that a financial instrument has low credit risk, the Company assumes that
its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financial instruments individually or
collectively. When assessing the financial instruments collectively, the Company includes the financial instruments in different
groups according to their common risk characteristics.
At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of increase in or reversal of
loss allowance recognized in profit or loss for the current period as impairment losses or gains. With respect to a financial asset at
amortized cost, its carrying 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 with expected credit risk assessed on a group basis and expected credit loss measured under three-
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stage model
Item Basis for grouping Method for measuring expected credit losses
Other receivables - group of receivables from Calculate the expected credit losses according to
related parties controlled by the same actual the default risk exposure and rate of expected
controller Nature of receivables credit loss within the next 12 months or lifetime
Other receivables - group of deposit and security expected credit losses by reference to historic
receivable credit loss experience, and taking into account
Other receivables - grouping by age the current situations and prediction of future
Aging economic conditions.
(3) Accounts receivable and contract assets for which expected credit losses are measured collectively
1) Specific grouping and method for measuring expected credit losses
Item Basis for grouping Method for measuring expected credit losses
Notes receivable - banker’s acceptance 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.
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
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.
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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 reserve for inventory
impairment is made based on the cost of a single inventory item less the net realizable value. 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 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.
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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.
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
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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
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.
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15. Investment properties
Measurement model of investment properties
Cost method measurement
Depreciation or amortization method
1. Investment properties include land use rights already leased, land use rights held and ready to be transferred upon
appreciation and leased buildings.
2. The initial measurement of investment properties is based on cost, the subsequent measurement is conducted by the cost
model, and the depreciation or amortization is conducted by the same method as that for fixed assets and intangible assets.
16. Fixed assets
(1) Criteria for recognition
Fixed assets are tangible assets held for production of goods, rendering of services, lease or operation and management with a
useful life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very likely to
flow to the Company and its cost can be reliably measured.
(2) Depreciation
Estimated useful life 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.
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
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, trademarks and domains, game copyrights,
etc., 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 less 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
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.
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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
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
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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 (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
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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 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.
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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
the Company’s performance have irreplaceable uses, and the Company has the right to collect payment for the cumulative
performance that has been completed up to date throughout the term of the contract, the Company regards it as a performance
obligation over time and recognizes revenue according to the performance progress, unless the performance progress cannot be
reasonably determined. The Company determines the progress of performance obligation using the output method. When the
performance progress cannot be reasonably determined, and the costs incurred by the Company are expected to be recoverable,
revenue is recognized to the extent of costs incurred until the performance progress can be reasonably determined.
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(3) The Company’s specific principles for the recognition and measurement of revenues earned in the sectors and lines of
business
1) Revenue from sale of goods through TV channels, network channels, outbound channels, online to offline channels and other
channels
The goods sold by the Company are mainly delivered by logistics companies to the buyers or picked by the buyers themselves.
The Company recognizes the revenue from sale of goods when the goods have been delivered by logistics companies to the buyers
and signed for by the buyers and the period for return of goods has expired.
If the customer is a group, sales revenue is recognized when the group has received the goods and signed the receipt of the
goods.
If credits are offered to the customers upon sale of goods, the Company allocates the amount received or receivable from the
sale of goods between the revenue from the sale of goods and the value of the credits, and recognizes the amount received or
receivable from the sale of goods net of the value of the credits as revenue, and the value of the credits as 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
A. 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
business is recognized as investment income.
B. 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,
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
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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
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
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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 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
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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 (1) the Company meets the conditions attaching to the government grants; and (2) the
Company will receive the government grants. If a government grant is in the form of a transfer of a monetary asset, the item is
measured at the amount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset, the item is
measured at fair value. If fair value is not reliably determinable, the item is measured at a nominal amount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered for purchasing, constructing or otherwise acquiring
long-term assets as provided by the applicable government documents, or in the absence of such express provision in the applicable
government documents, government grants whose primary condition is that the Company should purchase, construct or otherwise
acquire long-term assets. The government grants related to assets are offset against the carrying 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 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
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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 of finance lease
1. The Company as the lessee
On the commencement date of the lease period, the Company recognizes the right to use assets and lease liabilities for the
lease. See the right-to-use assets and lease liabilities for details.
2. The Company as the lessor
On the commencement date of the lease period, the Company recognizes the finance lease payments receivable in accordance
with the net lease investment (sum of the unguaranteed balance and the lease payment not received on the commencement date of
the lease period based on the present value discounted at the inherent interest rate of the lease), and derecognizes the finance lease
assets. At each phase of the lease period, the Company calculates and recognizes the interest income at the inherent interest rate of
the lease.
The amount of variable lease payments obtained by the Company that are not accrued to the measurement of net lease
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investment is accrued to the current profit and loss when 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
(2) Changes in significant accounting estimates
□Applicable N/A
VI. Taxes
1. Major categories of taxes and tax rates
Tax type Taxation basis Tax rate
VAT payable is the output tax based on the
sales of goods and taxable labor income
VAT calculated pursuant to the tax law, net of 13%, 9%, 5%, 6%, 3%
the input tax that is allowed to be deducted
in the current period.
Consumption tax Taxable sales turnover (volume) 5%
City maintenance and construction tax Actually paid turnover tax 7%, 5%
Enterprise income tax Taxable income Tax exemption, 8.25%, 15%, 16.5%, 25%
Taxable service income stipulated by the
Cultural program expenditure 1.5%
tax law
If it is levied on an ad valorem basis, the
tax is calculated as 1.2% of the remaining
value after being deducted 20% of the
Property tax 1.2%, 12%
original value of the property; if it is levied
subject to rent, the tax is calculated as 12%
of the rental income.
Education surcharges Actually paid turnover tax 3%
Local education surcharges Actually paid turnover tax 2%
Disclosure of taxpayers with different rates of enterprise income tax:
Taxpayer Rate of enterprise income tax
Happigo Co., Ltd. Tax exemption
Happy Sunshine Tax exemption
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
Hainan E.E. Media Co., Ltd. 15%
Happy Sunshine Xingmang Interactive Entertainment Media Co., 15%
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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, Mango Studios, Mango Entertainment, Hunan Happy Mango Fun Technology Co., Ltd., Hunan E.E. Media
Film and Television Production Co. Ltd. and Happigo 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
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 fourth 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 fifth year of exempting from enterprise income tax.
3. 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%.
4. 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. The National Development and Reform Commission
and other departments issued the Several Policies on Promoting the Recovery of the Development of Industries with Difficulties in
the Service Sector, where it is mentioned that the policy on VAT deduction for the service sector will be continued, and the current
deductible input tax for taxpayers in the life service sector will continue to be deducted at the rate of 10% in2022.
5. 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%.
147
Mango Excellent Media Co., Ltd. Annual Report 2022
VII. Notes to Items in the Consolidated Financial Statements
1. Cash and bank balances
In RMB
Item Closing balance Opening balance
Cash on hand 70,509.61 42,803.61
Bank deposits 9,662,574,577.55 6,952,751,972.39
Other monetary funds 24,044,287.23 21,670,375.81
Total 9,686,689,374.39 6,974,465,151.81
Other descriptions:
RMB22,600,000.00 in the ending bank deposit balance is frozen due to litigation, and the use of an amount of RMB20,888.80
of the security deposit is restricted.
In the closing balance of other monetary funds, the amount of RMB1,742,137.61 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
2,695,000,000.00 3,410,000,000.00
accrued to the current profits and losses
Including:
Finance products 2,695,000,000.00 3,410,000,000.00
Including:
Total 2,695,000,000.00 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 1,374,099,617.12 673,742,339.23
Trade acceptance 50,439,883.64
Total 1,424,539,500.76 673,742,339.23
In RMB
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
Category provision Carrying Carrying
Proporti Amou Proporti amount Proportio Amou amount
Amount Amount Proportion
on nt on n nt
Including:
Notes receivable for
which the provision 1,424,562,652. 100.00 23,15 1,424,539,500. 673,742 673,742,3
0.01% 100.00%
for bad debts were 53 % 1.77 76 ,339.23 39.23
made by group
Including:
1,374,099,617. 1,374,099,617. 673,742 673,742,3
Bank acceptances 96.46% 100.00%
12 12 ,339.23 39.23
23,15
Trade acceptance 50,463,035.41 3.54% 0.05% 50,439,883.64
1.77
1,424,562,652. 100.00 23,15 1,424,539,500. 673,742 673,742,3
Total 0.01% 100.00%
53 % 1.77 76 ,339.23 39.23
148
Mango Excellent Media Co., Ltd. Annual Report 2022
Provisions for bad debts made by group:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Bank acceptances portfolio 1,374,099,617.12
Trade acceptance portfolio 50,463,035.41 23,151.77 0.05%
Total 1,424,562,652.53 23,151.77
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
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
Provision for
bad debts by 23,151.77 23,151.77
portfolio
Total 23,151.77 23,151.77
Significant recovery or reversal of bad debt provision for the current period:
□Applicable N/A
(3) 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 974,395,661.37
Trade acceptance 50,000,000.00
Total 1,024,395,661.37
(4) 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,
149
Mango Excellent Media Co., Ltd. Annual Report 2022
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.
4. Accounts receivable
(1) Disclosure of accounts receivable by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Carrying Carrying
Proporti Proporti Proporti Proporti
Amount Amount amount Amount Amount amount
on on on on
Accounts
receivabl
e for
which
the
81,799,834.9 64,795,158. 17,004,676.5 96,251,520.2 57,616,847. 38,634,672.9
provision 2.32% 79.21% 2.92% 59.86%
4 39 5 5 28 7
for bad
debts are
made
individua
lly
Including
:
Accounts
receivabl
e for
which
the 3,451,667,28 233,240,429 3,218,426,85 3,198,630,40 123,522,159 3,075,108,24
97.68% 6.76% 97.08% 3.86%
provision 1.30 .60 1.70 1.64 .73 1.91
for bad
debts are
made by
group
Including
:
3,533,467,11 100.00 298,035,587 3,235,431,52 3,294,881,92 100.00 181,139,007 3,113,742,91
Total 8.43% 5.50%
6.24 % .99 8.25 1.89 % .01 4.88
Provisions for bad debts made individually:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason for provisions
Likely to be non-
The first 23,383,374.87 16,777,045.64 71.75%
recoverable
Likely to be non-
The second 11,755,050.00 3,526,515.00 30.00%
recoverable
Expected to be non-
The third 10,786,000.00 10,786,000.00 100.00%
recoverable
Expected to be non-
The fourth 9,701,037.77 9,701,037.77 100.00%
recoverable
Expected to be non-
The fifth 4,832,200.00 4,832,200.00 100.00%
recoverable
Expected to be non-
The sixth 3,880,651.10 3,880,651.10 100.00%
recoverable
Likely to be non-
The seventh 3,000,000.00 830,187.68 27.67%
recoverable
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Mango Excellent Media Co., Ltd. Annual Report 2022
Expected to be non-
The eighth 2,185,000.00 2,185,000.00 100.00%
recoverable
Expected to be non-
Others 12,276,521.20 12,276,521.20 100.00%
recoverable
Total 81,799,834.94 64,795,158.39 -- --
Provisions for bad debts made individually:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Aging group 2,502,582,336.23 233,240,429.60 9.32%
Group of receivables from
related parties controlled by the 949,084,945.07
same actual controller
Total 3,451,667,281.30 233,240,429.60
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 1,788,585,669.14 76,973,529.61 4.30
1-2 years 260,626,349.06 23,401,898.84 8.98
2-3 years 186,457,705.87 32,434,896.78 17.40
3-4 years 239,181,511.90 83,624,833.39 34.96
4-5 years 23,535,846.03 12,610,016.75 53.58
Over 5 years 4,195,254.23 4,195,254.23 100.00
Total 2,502,582,336.23 233,240,429.60 9.32
If a provision for bad debts is made for accounts receivable in accordance with the general model of expected credit losses, please
disclose relevant information on provisions for bad debts with reference to the disclosure method of other receivables.
□Applicable N/A
Disclosure by aging
In RMB
Aging Book balance
Within 1 year (including) 2,669,588,177.06
1-2 years 312,462,622.35
2-3 years 253,350,558.04
Over 3 years 298,065,758.79
3-4 years 246,072,327.50
4-5 years 35,822,155.49
Over 5 years 16,171,275.80
Total 3,533,467,116.24
(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 57,616,847.28 8,733,311.11 1,555,000.00 64,795,158.39
individually:
Provisions for bad
123,522,159.73 109,718,269.87 233,240,429.60
debts made by group:
Total 181,139,007.01 118,451,580.98 1,555,000.00 298,035,587.99
Significant recovery or reversal of bad debt provision for the current period:
In RMB
151
Mango Excellent Media Co., Ltd. Annual Report 2022
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
Information of significant accounts receivable that are written off:
In RMB
Whether the amount
Nature of accounts Write-off procedures
Entity Write-off amount Reason for write-off arises from related-
receivable performed
party transactions
Description of write-off of accounts receivable:
(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 455,401,053.15 12.89%
The second 316,136,543.13 8.95% 15,806,827.16
The third 270,043,032.36 7.64%
The fourth 141,632,704.42 4.01% 2,216,327.04
The fifth 113,618,418.14 3.22% 5,680,920.91
Total 1,296,831,751.20 36.71%
5. Receivable financing
In RMB
Item Closing balance Opening balance
Bank acceptance 48,185,442.19 137,800,000.00
Total 48,185,442.19 137,800,000.00
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 RMB966,243,266.44.
6. Prepayments
(1) Presentation of prepayments by aging
In RMB
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 1,110,132,547.22 67.27% 1,420,518,067.67 77.44%
152
Mango Excellent Media Co., Ltd. Annual Report 2022
1-2 years 446,355,580.68 27.05% 174,255,538.14 9.50%
2-3 years 14,407,355.13 0.87% 103,322,639.16 5.63%
Over 3 years 79,323,028.73 4.81% 136,253,768.23 7.43%
Total 1,650,218,511.76 1,834,350,013.20
Reasons for overdue settlement of prepayments with significant amounts and aged more than 1 year:
Entity Closing balance Reasons for unsettlement
The first Prepayments for copyrights, pending
60,484,371.18
broadcasting
The second Prepayments for copyrights, pending
58,653,586.43
broadcasting
The third 49,999,516.00 Undelivered goods
The fourth Prepayments for copyrights, pending
45,283,019.04
broadcasting
The fifth Prepayments for copyrights, pending
31,733,651.04
broadcasting
Sub-total 246,154,143.69
(2) Top five closing balances of prepayments categorized by receivers
Entity Book balance Proportion to total
prepayments (%)
The first 126,584,906.51 7.19
The second 81,186,510.95 4.61
The third 70,584,905.16 4.01
The fourth 61,094,339.90 3.47
The fifth 60,484,371.18 3.44
Sub-total 399,935,033.70 22.72
Other descriptions:
7. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 54,351,283.13 40,568,403.37
Total 54,351,283.13 40,568,403.37
(1) 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
Nature
period of the period
Security deposit 35,507,726.83 20,865,460.51
Amount due to or from related parties 6,264,749.58 6,905,347.81
Suspense payments receivable 3,630,180.60 4,517,799.42
Petty cash 7,994,665.36 6,334,132.71
153
Mango Excellent Media Co., Ltd. Annual Report 2022
Receivables and payables 7,500,197.30 7,369,135.72
Total 60,897,519.67 45,991,876.17
2) Provision for bad debts
In RMB
Stage I Stage II Stage III
Provisions for bad
Lifetime ECL (without Lifetime ECL (with Total
debts Future 12-month ECL
credit impairment) credit impairment)
Balance as at January
552,179.65 90,010.20 4,781,282.95 5,423,472.80
1, 2022
Balance as at January
1, 2022 in the current
period
-- Stage II -49,621.51 49,621.51
-- Stage III -48,923.07 48,923.07
Current provision -30,126.17 21,586.61 1,181,303.30 1,172,763.74
Current write-off 50,000.00 50,000.00
Balance as at
472,431.97 112,295.25 5,961,509.32 6,546,236.54
December 31, 2022
Changes in book balance whose loss allowance changed significantly in the current period
□Applicable N/A
Disclosure by aging
In RMB
Aging Gross carrying amount
Within 1 year (including) 37,154,145.07
1-2 years 5,758,731.68
2-3 years 8,205,703.84
Over 3 years 9,778,939.08
3-4 years 3,672,664.29
4-5 years 1,361,903.86
Over 5 years 4,744,370.93
Total 60,897,519.67
3) Provisions, recovery or reversal of bad debts for the period
Provision for bad debts made for the current period:
In RMB
Changes for the current period
Opening
Category Recovery or Closing balance
balance Provision Write-off Others
reversal
Provisions for
5,423,472.80 1,172,763.74 50,000.00 6,546,236.54
bad debts
Total 5,423,472.80 1,172,763.74 50,000.00 6,546,236.54
Including significant amounts recovered or reversed from the current provision for bad debts:
154
Mango Excellent Media Co., Ltd. Annual Report 2022
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
Other receivables 50,000.00
Descriptions of significant other receivables that are written off:
In RMB
Whether the
Write-off payments were
Nature of other Reasons for write-
Entity Write-off amount procedures generated from
receivables off
performed related party
transactions
Descriptions of write-off of other receivables:
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
The first Security deposit 5,444,006.24 Within 1 year 8.94%
Amount due to or
The second from related 2,329,764.69 Over 5 years 3.83% 2,329,764.69
parties
Receivables and
The third 2,000,000.00 Within 1 year 3.28% 20,000.00
payables
The fourth Security deposit 2,000,000.00 3-4 years 3.28%
The fifth Security deposit 1,600,000.00 Within 1 year 2.63%
Total 13,373,770.93 21.96% 2,349,764.69
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 decline in value decline in value
Book balance Carrying amount Book balance Carrying amount
of inventories or of inventories or
for impairment of for impairment of
155
Mango Excellent Media Co., Ltd. Annual Report 2022
contract contract
performance performance
costs costs
Raw materials 110,454,024.29 110,454,024.29 153,715,792.31 153,715,792.31
Work in process 751,769,342.11 751,769,342.11 739,561,476.10 7,075,138.47 732,486,337.63
Goods on hand 825,737,851.60 140,484,307.45 685,253,544.15 911,365,394.93 128,552,836.04 782,812,558.89
Turnover
756,248.01 756,248.01 756,248.01 756,248.01
materials
Goods upon
51,898,680.10 51,898,680.10 19,775,763.95 19,775,763.95
delivery
Total 1,740,616,146.11 140,484,307.45 1,600,131,838.66 1,825,174,675.30 135,627,974.51 1,689,546,700.79
(2) Provision for decline in value of inventories and for impairment of contract performance costs
In RMB
Increase in the current period Decrease in the current period
Item Opening balance Reversal or write- Closing balance
Provision Others Others
off
Work in process 7,075,138.47 7,075,138.47
Goods on hand 128,552,836.04 20,684,658.52 8,753,187.11 140,484,307.45
Total 135,627,974.51 20,684,658.52 15,828,325.58 140,484,307.45
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.
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 984,299,576.93 54,895,640.42 929,403,936.51 954,735,808.95 51,682,065.34 903,053,743.61
Total 984,299,576.93 54,895,640.42 929,403,936.51 954,735,808.95 51,682,065.34 903,053,743.61
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
3,213,575.08 Made by group
portfolio
Total 3,213,575.08 --
Other descriptions:
10. Other current assets
In RMB
Item Closing balance Opening balance
Prepayments for internet access
13,696,428.21 8,462,851.39
cooperation
Input VAT to be deducted 83,150,519.10 101,052,683.66
156
Mango Excellent Media Co., Ltd. Annual Report 2022
Prepaid taxes and levies 6,281,520.53
Others 13,911,886.66 7,742,163.67
Total 110,758,833.97 123,539,219.25
Other descriptions:
11. Long-term equity investments
In RMB
Increase or decrease for the period Closing
Opening Investmen Declared Closing balance of
Additio Adjustment in Provisions
balance Decreased t profit or Other cash balance provision
Investee nal other for
(carrying investmen loss under equity dividend Others (carrying for
investm comprehensive impairmen
amount) t equity changes s or amount) diminution
ent income t
method profits in value
I. Joint ventures
II. Associates
Shanghai
Mamma Mia
-
Interactive 23,882,5 17,181,905 4,123,86 17,181,90
2,576,746.
Entertainment 17.37 .95 4.73 5.95
69
Technology
Co., Ltd.
-
23,882,5 17,181,905 4,123,86 17,181,90
Sub-total 2,576,746.
17.37 .95 4.73 5.95
69
-
23,882,5 17,181,905 4,123,86 17,181,90
Total 2,576,746.
17.37 .95 4.73 5.95
69
Other descriptions:
12. Investment properties
(1) Investment properties measured at cost
Applicable □N/A
Unit: RMB
Item Buildings Land use right Construction in process Total
I. Original carrying
amount:
1. Opening balance
2. Increase in the
84,309,445.29 84,309,445.29
current period
(1) Purchase
(2) Inventory/fixed
assets/transfer from
construction in progress
(3) Increase due to
business merger
(4) Other increases 84,309,445.29 84,309,445.29
3. Current decreases
(1) Disposal
(2) Other
amounts transferred out
157
Mango Excellent Media Co., Ltd. Annual Report 2022
4. Closing balance 84,309,445.29 84,309,445.29
II. Accumulative
depreciation and
accumulative
amortization
1. Opening balance
2. Current increase 928,411.69 928,411.69
(1) Provision or
928,411.69 928,411.69
amortization
3. Current decreases
(1) Disposal
(2) Other
amounts transferred out
4. Closing balance 928,411.69 928,411.69
III. Reserve for
impairment
1. Opening balance
2. Current increase
(1) Provision
3. Current decreases
(1) Disposal
(2) Other
amounts transferred out
4. Closing balance
IV. Book value
1. Closing book
83,381,033.60 83,381,033.60
value
2. Opening book
value
(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
The online registration was completed in
Buildings 29,086,264.81 December 2022, and the title certificate is
expected to be completed in 2023
Other descriptions: The current increase in investment properties is due to the increase in debt repayment with debt-restructured
properties.
158
Mango Excellent Media Co., Ltd. Annual Report 2022
13. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 165,275,869.62 184,450,336.98
Total 165,275,869.62 184,450,336.98
(1) Fixed assets
In RMB
Electronic
Machines and equipment, Transportation
Item Buildings Others Total
equipment devices and equipment
furniture
I. Original carrying
amount:
1. Opening 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
2. Increase in the
1,587,194.00 19,815,044.97 21,402,238.97
current period
(1) Purchase 1,587,194.00 19,815,044.97 21,402,238.97
(2) Transfer from
construction in
progress
(3) Increase due to
business
combination
3. Decrease in the
12,308,527.74 507,689.74 12,816,217.48
current period
(1) Disposal or
12,308,527.74 507,689.74 12,816,217.48
retirement
4. Closing balance 58,268,091.66 296,443,985.19 296,567,168.71 15,157,505.33 11,000,000.00 677,436,750.89
II. Accumulated
depreciation
1. Opening balance 12,598,574.60 254,381,839.51 206,718,806.39 10,306,057.43 484,005,277.93
2. Increase in the
1,908,705.37 10,755,435.17 26,085,388.52 1,234,260.15 39,983,789.21
current period
(1) Provision 1,908,705.37 10,755,435.17 26,085,388.52 1,234,260.15 39,983,789.21
3. Decrease in the
11,796,340.93 426,959.43 12,223,300.36
current period
(1) Disposal or
11,796,340.93 426,959.43 12,223,300.36
retirement
4. Closing balance 14,507,279.97 265,137,274.68 221,007,853.98 11,113,358.15 511,765,766.78
III. Provision for
impairment
1. Opening balance 391,088.27 4,026.22 395,114.49
2. Increase in the
current period
(1) Provision
3. Decrease in the
current period
(1) Disposal or
retirement
4. Closing balance 391,088.27 4,026.22 395,114.49
VI. Book value
1. Closing balance 43,760,811.69 30,915,622.24 75,555,288.51 4,044,147.18 11,000,000.00 165,275,869.62
159
Mango Excellent Media Co., Ltd. Annual Report 2022
2. Opening 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
(3) Fixed assets leased out under operating lease
In RMB
Item Closing balance
Buildings 22,747,860.63
14. Right of use assets
In RMB
Item Total
I. Cost:
1. Opening balance 262,082,926.25 262,082,926.25
2. Increase in the current period 80,455,805.59 80,455,805.59
(1) Lease in 80,455,805.59 80,455,805.59
3. Decrease in the current period 75,880,757.49 75,880,757.49
(1) Disposal 75,880,757.49 75,880,757.49
4. Closing balance 266,657,974.35 266,657,974.35
II. Accumulated depreciation
1. Opening balance 51,778,430.83 51,778,430.83
2. Increase in the current period 65,087,069.79 65,087,069.79
(1) Provision 65,087,069.79 65,087,069.79
3. Decrease in the current period 22,395,748.29 22,395,748.29
(1) Disposal 22,395,748.29 22,395,748.29
4. Closing balance 94,469,752.33 94,469,752.33
III. Provision for impairment
1. Opening balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
4. Closing balance
VI. Carrying amount
1. Closing balance of carrying
172,188,222.02 172,188,222.02
amount
2. Opening balance of carrying
210,304,495.42 210,304,495.42
amount
Other descriptions:
160
Mango Excellent Media Co., Ltd. Annual Report 2022
15. Intangible assets
(1) Intangible assets
In RMB
Patent
Non- licensing
Film and Trademarks
Land use Paten patent fees and Game
Item television series Software and domain Total
rights t technolog program copyright
copyright names
y adaptation
rights
I. Original
carrying
amount
1. Opening 33,157,507. 21,497,248,205. 193,314,477. 3,096,059.0 40,660,377. 25,851,553. 21,793,328,180.
balance 40 03 93 3 35 37 11
2. Increase
in the 5,289,055,135.2 241,856,763. 2,069,257.2 5,533,062,391.6
81,235.84
current 3 31 7 5
period
(1) 5,289,055,135.2 2,069,257.2 5,295,846,683.5
4,641,055.18 81,235.84
Purchase 3 7 2
(2) In-
house
research 237,215,708.
237,215,708.13
and 13
developme
nt
(3) Increase
due to
business
combinatio
ns
3. Decrease
in the 3,867,924.5
976,488,151.57 980,356,076.10
current 3
period
(1)
976,488,151.57 976,488,151.57
Disposal
Other 3,867,924.5
3,867,924.53
decreases 3
4. Closing 33,157,507. 25,809,815,188. 435,171,241. 3,177,294.8 36,792,452. 27,920,810. 26,346,034,495.
balance 40 69 24 7 82 64 66
II.
Accumulate
d
amortizatio
n
1. Opening 7,161,570.4 15,200,626,033. 96,225,593.6 2,985,996.1 25,277,003. 17,376,826. 15,349,653,024.
balance 2 52 7 3 45 97 16
2. Increase
in the 4,960,219,659.9 39,657,959.7 4,412,055.3 4,449,476.7 5,009,448,361.0
676,683.82 32,525.47
current 0 0 7 9 5
period
(1) 4,960,219,659.9 39,657,959.7 4,412,055.3 4,449,476.7 5,009,448,361.0
676,683.82 32,525.47
Provision 0 0 7 9 5
(2) Other
decreases
3. Decrease
in the 1,648,322.7
976,488,151.57 978,136,474.28
current 1
period
(1) 976,488,151.57 976,488,151.57
161
Mango Excellent Media Co., Ltd. Annual Report 2022
Disposal
2) Disposal
1,648,322.7
of 1,648,322.71
1
subsidiaries
4. Closing 7,838,254.2 19,184,357,541. 135,883,553. 3,018,521.6 28,040,736. 21,826,303. 19,380,964,910.
balance 4 85 37 0 11 76 93
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 25,319,253. 6,625,457,646.8 299,287,687. 8,751,716.7 6,094,506.8 6,965,069,584.7
158,773.27
balance 16 4 87 1 8 3
2. Opening 25,995,936. 6,296,622,171.5 97,088,884.2 15,383,373. 8,474,726.4 6,443,675,155.9
110,062.90
balance 98 1 6 90 0 5
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: 1.05%.
16. Development expenditure
In RMB
Opening Closing
Increase in the current period Decrease in the current period
balance balance
Item In-house Transfer to
Recognized
Opening developme current Closing
Others intangible
balance nt profit or balance
assets
expenditure loss
Cloud
platform 232,522,75 4,692,954.8 237,215,70
constructio 3.24 9 8.13
n project
Smart
audio- 98,662,331. 98,662,331.
visual 53 53
project
Self-
developed 3,170,414.7 3,170,414.7
game 0 0
project
Total 232,522,75 106,525,70 237,215,70 101,832,74
162
Mango Excellent Media Co., Ltd. Annual Report 2022
3.24 1.12 8.13 6.23
Other descriptions:
Mango TV Smart audio-visual media service platform project (hereinafter referred to as “Smart Audio-visual Project”) is a project
supporting Happy Sunshine Fund, aiming to strengthen the basic service ability, intelligent content production management,
refined audio-visual media operations, cutting-edge audio-visual experience exploration, innovative business application sector,
“4K+5G” high-definition smart production, etc., to build China’s leading smart audio-visual media service platform, so as to
improve the core competitiveness and brand awareness of the Company.
Planned in 2020, the Smart Audio-visual Project was approved at a meeting of the Happy Sunshine Technical Committee on
March 25, 2022. From March 2022, 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
113,847,481.21 4,977,912.59 30,750,598.75 88,074,795.05
decoration for rented
buildings
Total 113,847,481.21 4,977,912.59 30,750,598.75 88,074,795.05
Other descriptions:
18. Deferred tax assets / deferred tax liabilities
(1) Details of unrecognized deferred tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary
69,703,920.25 37,086,125.59
differences
Deductible losses 830,187,037.45 453,456,947.42
Total 899,890,957.70 490,543,073.01
(2) Deductible losses, for which no deferred tax assets are recognized, will expire in the following year
In RMB
Year Closing balance Opening balance Remark
2022 16,360,098.46
2023 33,995,918.61 34,007,431.00
2024 383,268.85 383,268.85
2025 39,666,144.36 40,704,936.96
2026 352,766,517.40 362,001,212.15
2027 403,375,188.23
Total 830,187,037.45 453,456,947.42
Other descriptions:
163
Mango Excellent Media Co., Ltd. Annual Report 2022
19. Other non-current assets:
In RMB
Closing balance Opening balance
Provision
Item Carrying Provision for Carrying
Book balance for Book balance
amount impairment amount
impairment
Prepayments for equipment and
35,017,190.95 35,017,190.95 1,260,178.59 1,260,178.59
construction projects
Total 35,017,190.95 35,017,190.95 1,260,178.59 1,260,178.59
Other descriptions:
20. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Item Closing balance Opening balance
Pledge borrowings 1,018,145,573.43
Credit borrowings - principal 39,731,500.00 39,731,500.00
Credit borrowings - interest 55,403.37 55,403.37
Total 1,057,932,476.80 39,786,903.37
Description for categories of short-term borrowings: The pledged loans are bank acceptance bills and commercial acceptance bills
of small commercial banks that have already been discounted yet not derecognized at the end of the period.
21. Notes payable
In RMB
Category Closing balance Opening balance
Commercial acceptances 403,807,532.47 349,649,263.65
Bank acceptances 1,237,194,311.78 571,855,441.26
Total 1,641,001,844.25 921,504,704.91
Total notes payable matured but not paid yet is RMB0.00 at the end of the period.
22. Accounts payable
(1) Accounts payable
In RMB
Item Closing balance Opening balance
Payments for purchase of engineering
4,836,096,826.84 4,960,935,241.83
equipment and goods
Total 4,836,096,826.84 4,960,935,241.83
(2) Significant accounts payable aged over one year
In RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
The first 53,715,637.77 Not yet due for settlement
The second 50,943,396.23 Not yet due for settlement
The third 50,395,471.69 Not yet due for settlement
164
Mango Excellent Media Co., Ltd. Annual Report 2022
The fourth 49,111,077.45 Not yet due for settlement
The fifth 42,117,006.78 Not yet due for settlement
The sixth 40,658,279.84 Not yet due for settlement
Total 286,940,869.76 --
Other descriptions:
23. Contract liabilities
In RMB
Item Closing balance Opening balance
Goods payments 295,622,176.66 551,341,131.10
Investments in film and television series
84,061,093.91 103,960,965.03
co-production
Membership service 665,056,892.14 671,991,967.72
Total 1,044,740,162.71 1,327,294,063.85
Significant changes in the carrying amount during the Reporting Period and reasons therefor:
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
979,215,617.98 1,585,230,181.30 1,576,513,479.51 987,932,319.77
remuneration
II. Post-employment
benefits-defined benefit 559,049.11 45,323,448.70 45,403,697.71 478,800.10
plan
III. Termination benefits 619,447.11 9,659,771.08 9,768,991.80 510,226.39
Total 980,394,114.20 1,640,213,401.08 1,631,686,169.02 988,921,346.26
(2) Short-term remuneration
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wages or salaries,
bonuses, allowances and 977,941,723.31 1,476,637,180.65 1,468,983,332.07 985,595,571.89
subsidies
2. Employee welfare
6,280.00 46,887,370.82 46,893,650.82
expenses
3. Social security
279,871.18 27,815,102.22 27,844,027.97 250,945.43
contributions
Including: Medical
259,228.70 22,858,219.09 22,884,351.25 233,096.54
insurance
Work-related
13,070.72 1,551,201.19 1,552,647.86 11,624.05
injuries insurance
Maternity
7,571.76 324,424.98 325,771.90 6,224.84
insurance
Other commercial
0.00 3,081,256.96 3,081,256.96 0.00
insurance
4. Housing funds 185,891.00 28,751,191.24 28,586,625.24 350,457.00
5. Union running costs
and employee education 801,852.49 5,139,336.37 4,205,843.41 1,735,345.45
cost
Total 979,215,617.98 1,585,230,181.30 1,576,513,479.51 987,932,319.77
165
Mango Excellent Media Co., Ltd. Annual Report 2022
(3) Defined benefit plan
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pensions 541,346.63 43,549,220.97 43,627,037.67 463,529.93
2. Unemployment
17,702.48 1,774,227.73 1,776,660.04 15,270.17
insurance
Total 559,049.11 45,323,448.70 45,403,697.71 478,800.10
25. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 9,265,812.82 18,212,095.97
Enterprise income tax 58,276.74 58,276.74
Personal Income Tax 36,167,891.54 12,409,994.97
City maintenance and construction tax 416,197.31 1,082,825.71
Stamp duty 1,985,402.35 2,101,365.54
Education surcharges 323,376.98 773,440.32
Development fee for cultural undertakings 152,478,937.95 88,789,083.88
Other taxes 2,866,410.18 47,506.59
Total 203,562,305.87 123,474,589.72
Other descriptions:
26. Other payables
In RMB
Item Closing balance Opening balance
Other payables 130,945,241.48 149,086,160.61
Total 130,945,241.48 149,086,160.61
(1) Other payables
1) Other payables by nature
In RMB
Item Closing balance Opening balance
Receivables and payables 101,256,645.96 125,133,366.15
Security deposit 29,688,595.52 23,952,794.46
Total 130,945,241.48 149,086,160.61
2) Other significant payables aged over one year
In RMB
Reason for failure to be repaid or carried
Item Closing balance
forward
The first 3,795,134.25 Not yet due for settlement
The second 3,679,057.92 Not yet due for settlement
The third 3,000,000.00 Not yet due for settlement
Total 10,474,192.17
166
Mango Excellent Media Co., Ltd. Annual Report 2022
Other descriptions:
27. Non-current liabilities due within one years
In RMB
Item Closing balance Opening balance
Lease liabilities due within 1 year 51,183,707.98 43,098,562.04
Total 51,183,707.98 43,098,562.04
Other descriptions:
28. Other current liabilities
In RMB
Item Closing balance Opening balance
Logistics and distribution expenses 1,526,603.47 2,219,436.05
Output tax to be transferred 79,144,115.55 106,144,514.31
Expenses for internet access cooperation 12,388,033.97 12,861,922.09
Notes endorsed but not derecognized [note] 210,748,000.00
Others 12,592,389.26 7,061,685.54
Total 105,651,142.25 339,035,557.99
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 131,515,067.86 169,643,622.50
Total 131,515,067.86 169,643,622.50
Other descriptions:
30. Estimated liabilities
In RMB
Item Closing balance Opening balance Reason
Estimated compensation for
Pending litigation 9,038,875.00 13,815,868.00
pending litigation
Total 9,038,875.00 13,815,868.00
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
167
Mango Excellent Media Co., Ltd. Annual Report 2022
Government grants
Governmental grants 45,517,771.81 14,247,547.17 16,989,321.21 42,775,997.77 related to assets and
income
Total 45,517,771.81 14,247,547.17 16,989,321.21 42,775,997.77 --
Projects involving government grants
In RMB
Amount
Additional Amount Amount offset Related to
Opening recognized in Other Closing
Liabilities government recognized in against costs assets/inco
balance non-operating changes balance
grants other income and expenses me
income
Special funds for culture 19,943,986 11,238,028. Related to a
8,705,958.32
industry development .81 49 ssets
Subsidy for Youth Mango 8,733,333. 4,133,333.3 Related to
4,599,999.99
Night Project 33 4 assets
Mango Offline Immersion 3,000,000. 2,234,042.5 Related to
765,957.48
Experience Project 00 2 assets
Happigo Supply Chain
2,383,002. 2,283,002.8 Related to
Urban Co-Distribution 100,000.00
83 3 assets
System Project
“Project Investment
Support” for Malanshan 2,292,001. 1,644,007.4 Related to
647,993.65
Investment Invitation and 06 1 assets
Industry Development
Special Funds for
2,000,000. 2,000,000.0 Related to
Construction of Innovative
00 0 assets
Province
Special Funds for
Related to
Development of Mobile 969,999.90 953,333.40 16,666.50
assets
Internet Industry
Special Funds for
Related to
Development of Modern 935,329.52 40,229.22 895,100.30
assets
Logistics
Funds for Guiding
Related to
Development of Provincial 333,333.52 333,333.52
assets
Culture Undertakings
Network Audiovisual
Related to
Program Quality Creation 114,000.00 72,000.00 42,000.00
assets
and Dissemination Project
Special Funds for
Related to
Development of Modern 60,000.00 60,000.00
assets
Services
Second Special Funds for
Related to
Development of Modern 20,000.00 20,000.00
assets
Services-Mango TV App
Broadcasting and 10,000,000. 10,000,000. Related to
Recording Studio Subsidy 00 00 assets
Subsidy for Key Animation Related to a
707,547.17 707,547.17
Projects ssets
Mango TV International
2,059,800. 2,133,333.3 Related to p
Media Integration and -73,533.32
00 2 roceeds
Communication Project
Subsidy for Guiding
Related to
Development of Hunan 957,333.33 284,000.01 673,333.32
proceeds
Culture Undertakings
Mango TV Smart Home Related to
766,666.67 100,000.00 666,666.67
Page Push Project proceeds
Mango TV High-tech
Related to
Interactive Video Creation 115,000.00 30,000.00 85,000.00
proceeds
Platform Project
Mango TV International
3,000,000.0 3,000,000.0 Related to
APP Overseas
0 0 proceeds
Development Project
Mango TV International
Related to
APP Traditional Chinese 540,000.00 540,000.00
proceeds
Culture Project
168
Mango Excellent Media Co., Ltd. Annual Report 2022
Related to
Other 833,984.84 350,048.94 483,935.90
assets
45,517,771 14,247,547. 16,989,321.2 42,775,997.
Subtotal
.81 17 1 77
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 1,870,720,815.00 1,870,720,815.00
Other descriptions:
33. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (Share
9,238,122,065.71 302,411,028.49 9,540,533,094.20
capital premium)
Other capital reserve 6,264,437.84 6,264,437.84
Total 9,244,386,503.55 302,411,028.49 9,546,797,532.04
Other descriptions, including changes and reasons therefor:
The increase in the current capital premium (equity premium) was caused by capital increase from minority shareholders to the
controlled subsidiary Xiaomang Electronic Commerce Co., Ltd. See Note IX (2) hereto for details.
34. Other comprehensive income
In RMB
Amount for the current period
Less: Amount
Less: Amount
included in
included in
other
other
comprehensive
Amount comprehensive Less: Attributable Attributable to
Opening income for the Closing
Item before income income for the Income to the parent minority
balance prior periods balance
tax for the prior periods tax company interests after
and transferred
current period and transferred expenses after tax tax
to the retained
to the profit or
earnings for
loss for the
the current
current period
period
II. Other comprehensive
income that will be -13,783.18 171,220.08 171,220.08 157,436.90
reclassified to profit or loss
Translation differences of
financial statements
-13,783.18 171,220.08 171,220.08 157,436.90
denominated in foreign
currencies
Total of other
-13,783.18 171,220.08 171,220.08 157,436.90
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:
169
Mango Excellent Media Co., Ltd. Annual Report 2022
35. Surplus reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory capital reserves 105,025,383.29 21,083,553.92 126,108,937.21
Total 105,025,383.29 21,083,553.92 126,108,937.21
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 beginning of the period
5,746,281,439.57 3,881,526,167.30
after adjustment
Add: Net profit attributable to owners of the parent
1,824,925,935.93 2,114,090,171.85
company for the period
Less: Appropriation to statutory surplus reserve 21,083,553.92 17,885,823.15
Dividends payable for ordinary shares 243,193,705.95 231,449,076.43
Undistributed profits at the end of the period 7,306,930,115.63 5,746,281,439.57
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 13,688,381,175.77 9,053,332,034.45 15,335,407,048.03 9,896,297,197.78
Other operating activities 15,958,536.54 13,701,456.54 20,456,434.04 9,165,573.04
Total 13,704,339,712.31 9,067,033,490.99 15,355,863,482.07 9,905,462,770.82
Whether the lower of the net profit after non-recurring gain or loss is negative
□Yes No
Information on Revenue:
In RMB
Category of Contract Segment 1 Segment 2 Total
Commodity type 13,692,986,477.44 13,692,986,477.44
Including:
Internet video business of Mango TV 10,417,661,860.99 10,417,661,860.99
New media interactive entertainment content
1,118,058,249.34 1,118,058,249.34
production and operation
Content E-business 2,136,369,043.68 2,136,369,043.68
Others 20,897,323.43 20,897,323.43
By operating regions 13,692,986,477.44 13,692,986,477.44
Including:
Within Hunan province 3,236,331,686.33 3,236,331,686.33
170
Mango Excellent Media Co., Ltd. Annual Report 2022
Outside Hunan province 10,456,654,791.11 10,456,654,791.11
Type of market or customer
Including:
Type of contract
Including:
By the time of commodity transfer 13,692,986,477.44 13,692,986,477.44
Including:
Revenue recognized at a certain time point 7,057,966,158.34 7,057,966,158.34
Revenue recognized over a certain period of
6,635,020,319.10 6,635,020,319.10
time
By the contract term
Including:
By the selling channel
Including:
Total
Information regarding performance obligations:
Incomes generated from contracts with customers are RMB13,692,986,477.44.
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 RMB960,679,068.80, 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 182,749.05 178,896.89
City maintenance and construction tax 13,948,585.41 12,005,462.97
Education surcharges 10,016,630.23 8,610,998.23
Property tax 728,127.45 662,834.77
Land use rights 304,072.27 294,816.00
Vehicle and vessel tax 41,563.15 34,420.00
Stamp duty 1,485,561.97 5,092,020.91
Cultural program expenditure 63,689,854.06
Others 5,789.83 13,040.75
Total 90,402,933.42 26,892,490.52
Other descriptions:
39. Selling expenses
In RMB
Item Amount for the current period Amount for the prior period
Employee’s benefits and labor costs 608,608,837.08 732,215,078.75
Depreciation and amortization 11,377,513.71 12,874,964.32
Advertising costs 1,087,258,876.38 1,385,934,490.67
Expenses for internet access cooperation 35,562,482.84 50,041,434.51
Business travel expenses 14,986,093.99 27,363,866.16
Program production costs 9,674,917.32 22,105,723.12
Channel sales and operations development
390,480,869.67 195,904,288.97
expenses
Others 21,939,418.36 42,888,366.14
171
Mango Excellent Media Co., Ltd. Annual Report 2022
Total 2,179,889,009.35 2,469,328,212.64
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 446,229,549.51 467,964,670.43
Depreciation and amortization 60,238,161.98 63,382,058.67
Legal costs 9,346,418.21 11,964,048.12
Office and administrative service 66,449,942.90 104,503,482.74
Agency fees 14,249,003.73 13,626,103.94
Business entertainment expenses 1,857,431.67 2,749,458.11
Others 25,572,917.86 31,744,789.77
Total 623,943,425.86 695,934,611.78
Other descriptions:
41. Research and development expenses
In RMB
Item Amount for the current period Amount for the prior period
Employee’s benefits and labor costs 74,149,719.55 121,946,092.84
Depreciation and amortization 15,548,111.63 15,098,549.93
Technical service fees 140,783,980.32 129,004,804.77
Others 4,244,386.98 5,941,955.86
Total 234,726,198.48 271,991,403.40
Other descriptions:
42. Financial expenses
In RMB
Item Amount for the current period Amount for the prior period
Loan interest expenses 2,022,222.95 2,630,663.17
Expenditure from interest of bills
8,626,569.06
discounted not derecognized
Less: Interest income 188,926,813.85 125,145,189.95
Service charge 33,103,944.60 16,108,222.86
Interest expenses from lease liabilities 9,301,906.56 5,819,271.54
Foreign exchange gains and losses 4,409,147.02 -623,304.79
Total -131,463,023.66 -101,210,337.17
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 16,648,854.52 8,478,530.55
Government grants related to income 29,499,336.70 27,521,238.14
Refund of service fees of withholding
5,238,150.50 3,750,717.93
personal income tax
Additional VAT deduction 67,821,646.01 83,583,732.93
Total 119,207,987.73 123,334,219.55
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Mango Excellent Media Co., Ltd. Annual Report 2022
44. Investment income
In RMB
Item Amount for the current period Amount for the prior period
Income from long-term equity investments under equity
-2,576,746.69 999,547.86
method
Income from disposal of long-term equity investments 771,197.65
Proceeds from debt restructuring 27,219,600.00
Income from investments in film and television series without
1,193,136.19
copyrights
Income from wealth management products 119,290,763.72 34,265,617.23
Derecognized bill discount interest expenditure -10,956,907.95
Total 132,976,709.08 37,229,498.93
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 -1,172,763.74 -990,116.77
Bad debt losses of accounts receivable -116,896,580.98 -40,907,026.53
Losses from impairment of notes receivable -23,151.77
Other current assets-losses of impairment on issued loans -2,024,723.79
Total -118,092,496.49 -43,921,867.09
Other descriptions:
46. Impairment losses of assets
In RMB
Item Amount for the current period Amount for the prior period
II. Loss from inventory depreciation and loss from
-20,684,658.52 -59,299,155.29
impairment of contract performance cost
III. Loss from impairment of long-term equity investment -17,181,905.95
XII. Impairment losses of contractual assets -3,213,575.08 -8,787,239.21
XIII. Other -8,659,735.00
Total -49,739,874.55 -68,086,394.50
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 891,438.70 -85,941.70
Total 891,438.70 -85,941.70
48. Non-operating income
In RMB
Amount included in the non-
Item Amount for the current period Amount for the prior period recurring profit or loss for the
current period
Payment not to be made 5,290,663.40 1,994,903.35 5,290,663.40
Income from safeguarding legal
37,208,566.67 18,826,660.47 37,208,566.67
rights
Others 3,121,425.29 1,028,932.95 3,121,425.29
173
Mango Excellent Media Co., Ltd. Annual Report 2022
Total 45,620,655.36 21,850,496.77 45,620,655.36
Government grants included in profit and loss for the current period:
In RMB
If the grants affect
Amount for Amount for
earnings or losses If special Related to
Project Issuer Reason Nature the current the prior
for the current grants assets/income
period period
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 8,291.60 2,046,319.26 8,291.60
Losses from damage and
84,224.80 183,897.04 84,224.80
retirement of non-current assets
Compensation expenditures 4,085,013.49 20,277,175.00 4,085,013.49
Others 207,461.11 20,792,878.66 207,461.11
Total 4,384,991.00 43,300,269.96 4,384,991.00
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
Current income tax expenses 120,303.42 4,357.00
Total 120,303.42 4,357.00
(2) Reconciliation of income tax expenses to the accounting profit
In RMB
Item Amount for the current period
Total profit 1,766,287,106.70
Income tax expense calculated based on statutory/applicable tax rate 441,571,776.68
Effect of different tax rates of subsidiaries operating in other jurisdictions -544,902,968.23
Effect of adjustment on income tax for the period 119,436.49
Effect of non-deductible cost, expense and loss 1,511,531.56
Effect of utilizing deductible loss not recognized for deferred tax assets for prior period -2,861,456.07
Effect of deductible temporary difference or deductible loss not recognized for deferred tax
104,681,982.99
assets for the current period
Income tax expense 120,303.42
Other descriptions
51. 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 43,406,417.18 32,578,704.81
Interest income 188,926,813.85 125,145,189.95
174
Mango Excellent Media Co., Ltd. Annual Report 2022
Income from safeguarding legal rights 37,208,566.67 18,826,660.47
Receivables and payables and others 25,467,502.38 18,587,427.72
Total 295,009,300.08 195,137,982.95
Descriptions of other cash receipts relating to operating activities:
(2) Other cash payments relating to operating activities
In RMB
Item Amount for the current period Amount for the prior period
Payments of various expenses 1,616,249,384.77 1,920,961,411.48
Band service charges 44,365,733.65 16,108,222.86
Accounts current and others 4,092,045.79 58,023,952.39
Total 1,664,707,164.21 1,995,093,586.73
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
14,093,790,618.76 5,326,000,000.00
products
Income from wealth management products 119,290,763.72 34,265,617.23
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 14,213,081,382.48 5,491,458,753.41
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 13,371,990,000.00 8,736,000,000.00
Total 13,371,990,000.00 8,736,000,000.00
Descriptions of other cash payments relating to investing activities:
(5) Other cash payments relating to financing activities
In RMB
Item Amount for the current period Amount for the prior period
Lease payment 64,204,383.75 64,826,084.84
Payment of intermediary financing fees 1,000,323.87
Total 64,204,383.75 65,826,408.71
Descriptions of other cash payments relating to financing activities:
52. 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:
175
Mango Excellent Media Co., Ltd. Annual Report 2022
Net profit 1,766,166,803.28 2,114,479,715.08
Add: Provision for impairment losses of assets 167,832,371.04 112,008,261.59
Depreciation of fixed assets, depletion of oil and gas assets,
40,912,200.90 43,223,108.33
depreciation of bearer biological assets
Depreciation of right of use assets 65,087,069.79 52,187,591.16
Amortization of intangible assets 5,009,448,361.05 4,791,099,179.27
Amortization of long-term prepaid expenses 30,750,598.75 19,340,593.74
Losses on disposal of fixed assets, intangible assets and other long-
-891,438.70 85,941.70
term assets (gains are indicated by “－”)
Losses on retirement of fixed assets (gains are indicated by “－”) 84,224.80 183,897.04
Income from changes in fair value (gains are indicated by “-”)
Financial expenses (gains are indicated by “－”) 24,359,845.59 7,826,629.92
Investment losses (gains are indicated by “－”) -132,976,709.08 -37,229,498.93
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 “－”) 68,730,203.61 -88,521,247.99
Decrease in receivables from operating activities (increase is
-1,261,061,702.77 -1,337,314,454.99
indicated by “－”)
Increase in payables from operating activities (decrease is indicated
62,260,204.96 203,751,973.07
by “－”)
Others -5,289,055,135.23 -5,319,320,806.62
Net cash flows from operating activities 551,646,897.99 561,800,882.37
2. Significant investing and financing activities that do not involve
cash receipts and payments:
Conversion of debt into capital
Convertible corporate bonds due within 1 year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 9,662,326,347.98 6,911,377,914.18
Less: opening balance of cash 6,911,377,914.18 5,314,463,484.01
Add: Closing balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 2,750,948,433.80 1,596,914,430.17
(2) Composition of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 9,662,326,347.98 6,911,377,914.18
Including: cash on hand 70,509.61 42,803.61
Bank deposit that can be paid at any
9,639,953,688.75 6,890,884,946.24
time
Other monetary funds that can be paid
22,302,149.62 20,450,164.33
at any time
III. Closing balance of cash and cash
9,662,326,347.98 6,911,377,914.18
equivalents
Other descriptions:
RMB22,600,000.00 in the ending bank deposit balance is frozen due to litigation, and the use of an amount of RMB20,888.80
of the security deposit is restricted.
In the closing balance of other monetary funds, the amount of RMB1,742,137.61 using as third-party deposits are restricted
to use.
53. Assets with restrictions in ownership or use right
In RMB
Item Closing balance Reason for restriction
Funds frozen in litigation and security
Cash and bank balances 24,363,026.41 deposit, and third-party platform account
security deposit
176
Mango Excellent Media Co., Ltd. Annual Report 2022
Bill endorsed or discounted before
Notes receivable 1,024,395,661.37
maturity
Total 1,048,758,687.78
Other descriptions:
54. 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 5,565,395.49
Including: USD 798,757.50 6.9646 5,563,026.48
EUR
HKD 2,651.98 0.8933 2,369.01
Accounts receivable 5,414,529.23
Including: USD 777,435.78 6.9646 5,414,529.23
EUR
HKD
Long-term borrowings
Including: USD
EUR
HKD
Accounts payable 11,988,641.95 6.9646 83,496,095.72
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
55. Government grants
(1) Basic information of government grants
In RMB
Amount included in profit or loss
Category Amount Line item
for the current period
Special funds for the development of
8,705,958.32 Other income 8,705,958.32
the cultural industry
Youth Mango Night project subsidy 4,599,999.99 Other income 4,599,999.99
Mango Offline Immersive Experience
765,957.48 Other income 765,957.48
Project
Happigo Supply Chain Urban Co-
100,000.00 Other income 100,000.00
Distribution System Project
“Project Investment Support” for
Malanshan investment attraction and 647,993.65 Other income 647,993.65
industrial development
Mobile internet industry development
953,333.40 Other income 953,333.40
special fund
Special funds for the development of 40,229.22 Other income 40,229.22
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Mango Excellent Media Co., Ltd. Annual Report 2022
the modern logistics
Guidance funds for provincial-level
333,333.52 Other income 333,333.52
cultural industry development
Network audio-visual program quality
72,000.00 Other income 72,000.00
creation and distribution project
Special funds for the development of
60,000.00 Other income 60,000.00
modern services
The second batch of special funds for
modern services development - Mango 20,000.00 Other income 20,000.00
TV mobile client
Other 350,048.94 Other income 350,048.94
Mango TV international convergence
-73,533.32 Other income -73,533.32
media communication project
Guidance fund subsidies for cultural
284,000.01 Other income 284,000.01
business of Hunan Province
Mango TV smart home page push
100,000.00 Other income 100,000.00
project
Mango TV high-tech interactive video
30,000.00 Other income 30,000.00
creation platform project
Subsidy and reward funds for cultural
7,900,000.00 Other income 7,900,000.00
industry development
Subsidy fund to help enterprises in
7,005,106.00 Other income 7,005,106.00
need and stabilize the economy
Project subsidy fund 4,751,509.44 Other income 4,751,509.44
Cultural export incentive 2,000,000.00 Other income 2,000,000.00
Job stabilization subsidy 1,861,986.32 Other income 1,861,986.32
Social security subsidy for enterprises
1,167,382.00 Other income 1,167,382.00
to maintain steady work and production
Corporate science and technology
1,000,000.00 Other income 1,000,000.00
innovation team bonus
Invention patent award 900,000.00 Other income 900,000.00
Special fund for e-commerce industry
870,000.00 Other income 870,000.00
development
Economic development incentive 360,000.00 Other income 360,000.00
Bonus for the 7th Online Original
349,056.60 Other income 349,056.60
Audio-visual Program Competition
Civilization construction Five “One”
Project (one good book, one good TV
150,000.00 Other income 150,000.00
series, one good play, one good film,
and one good article)
Special fund for service outsourcing
150,000.00 Other income 150,000.00
industry
One-time training subsidy for staying
107,894.99 Other income 107,894.99
workers
Financial support fund 101,000.00 Other income 101,000.00
Corporate development incentive fund 100,000.00 Other income 100,000.00
Other 384,934.66 Other income 384,934.66
(2) Return of government grants
□Applicable N/A
Other descriptions:
VIII. Changes in Scope of Consolidation
1. Disposal of subsidiaries
Whether there was any circumstance under which a single disposal of the investment in subsidiaries led to control loss
□Yes No
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Mango Excellent Media Co., Ltd. Annual Report 2022
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
2. 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:
Increase in the scope of combination
Company name Method of acquiring Timepoint of acquiring Subscribed capital Proportion of
equity equity contribution contribution
Changsha Xingmang Artist Culture
Communications Partnership Establishment February 23, 2022 20,000.00 20%
(Limited Partnership) [Note 1]
Changsha Xingzhimang
Entertainment Media Co., Ltd. Establishment March 21, 2022 20,800.00 20.80%
[Note 1]
Changsha Xingmang Interactive
Entertainment Media Partnership Establishment April 7, 2022 9,921,000.00 99.21%
(Limited Partnership) [Note 1]
Hunan Immersion Technology Co.,
Establishment August 11, 2022 10,000,000.00 100%
Ltd. [Note 2]
[Note 1] Changsha Xingmang Artist Cultural Communications Partnership, Changsha Xingzhimang Entertainment Media
Co., Ltd. and Changsha Xingmang Interactive Entertainment Media Partnership (Limited Partnership) have no actual contributions.
[Note 2] The actual contribution by Hunan Immersion Technology Co., Ltd. is RMB2,880,000.00.
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-
Changsha Changsha Commerce 100.00%
commerce
Limited Liability
179
Mango Excellent Media Co., Ltd. Annual Report 2022
Company
Business
Happigo (Hunan) combination
Supply Chain involving
Changsha Changsha Storage 100.00%
Management Co., enterprises not
Ltd. 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
Mango combination
Film &
Entertainment Changsha Changsha 100.00% involving
Television
Co., Ltd enterprises under
common control
Business
combination
Mango Studios Film &
Changsha Changsha 100.00% involving
Co., Ltd. Television
enterprises under
common control
Business
Shanghai
combination
Mangofun
Shanghai Shanghai Game 100.00% involving
Technology Co.,
enterprises under
Ltd.
common control
Business
combination
Shanghai EE- Film &
Shanghai Shanghai 100.00% involving
Media Co., Ltd. Television
enterprises under
common control
Zhejiang Business
Dongyang Tianyu combination
Film &
Film and Zhejiang Zhejiang 100.00% involving
Television
Television enterprises under
Culture Co. Ltd. common control
Hunan Tianyu Business
Film and combination
Film &
Television Changsha Changsha 100.00% involving
Television
Production Co. enterprises under
Ltd. common control
Business
combination
Beijing E.E.
Beijing Beijing Music 100.00% involving
Media Co., Ltd.
enterprises under
common control
Hainan E.E.
Hainan Hainan Culture media 100.00% Establishment
Media Co., Ltd.
Business
Beijing Happy combination
Mango Culture Beijing Beijing Culture media 100.00% involving
Media Co., Ltd. enterprises under
common control
Horgos Happy Business
Sunshine Media Horgos Horgos Culture media 100.00% combination
Co., Ltd. involving
180
Mango Excellent Media Co., Ltd. Annual Report 2022
enterprises under
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
Hongmang
Education Changsha Changsha Commerce 100.00% Establishment
Technology Co.,
Ltd.
Xiaomang
Electronic
Changsha Changsha Commerce 66.67% 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
Hunan Immersion
Technology Co., Changsha Changsha Advertising 100.00% Establishment
Ltd.
Changsha
Xingmang Artist
Culture Changsha Changsha Commerce 20.00% Establishment
Communications
Partnership
Changsha
Xingzhimang
Entertainment Changsha Changsha Commerce 20.80% Establishment
Media Co., Ltd.
Changsha
Xingmang
Interactive
Entertainment
Media Changsha Changsha Commerce 99.21% Establishment
Partnership
(Limited
Partnership)
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:
181
Mango Excellent Media Co., Ltd. Annual Report 2022
(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
Xiaomang Electronic
33.33% -51,176,930.92 -67,587,959.40
Commerce Co., Ltd.
Hunan Mango Auto
Automobile Sales Co., 49.00% -7,582,201.74 23,181,684.10
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
Closing balance Opening balance
Name of Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
subsidiary current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Xiaomang
Electronic 308,110, 926,595. 309,037, 511,800, 511,800, 76,397,4 380,034. 76,777,4 319,863, 319,863,306.6
Commerce 516.20 24 111.44 989.65 989.65 26.72 88 61.60 306.60 0
Co., Ltd.
Hunan
Mango
Auto 186,926, 16,193,3 203,120, 150,606, 5,204,38 155,810, 278,910, 20,051,2 298,961, 230,291, 5,886,47 236,177,955.3
Automobil 763.42 86.10 149.52 200.35 9.76 590.11 162.12 33.70 395.82 484.49 0.82 1
e Sales
Co., Ltd.
In RMB
Amount for the current period Amount for the prior period
Name of Total Cash flows Total Cash flows
subsidiary Operating comprehen from Operating comprehen from
Net profit Net profit
income sive operating income sive operating
income activities income activities
Xiaomang
- - - - - -
Electronic 680,133,76 247,298,09
245,678,03 245,678,03 200,830,56 281,426,10 281,426,10 161,993,39
Commerce 9.80 3.03
3.21 3.21 0.22 7.65 7.65 5.20
Co., Ltd.
Hunan
Mango
- - -
Auto 563,431,42 47,962,141. 1,008,991,7
15,473,881. 15,473,881. 915,674.90 915,674.90 50,575,124.
Automobil 7.14 19 07.33
10 10 22
e Sales Co.,
Ltd.
Other descriptions:
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Mango Excellent Media Co., Ltd. Annual Report 2022
2. Changes of shares of owners’ equity in subsidiaries but continue to remain control over transactions of
subsidiaries
(1) Descriptions of changes in the share of owner’s equity in the subsidiary
Shareholding ratio before Shareholding ratio after
Name of subsidy Time of change
change change
Xiaomang Electronic Commerce Co.,
June 20, 2022 100.00% 66.67%
Ltd.
(2) Effect of the transaction on the minority interests and the equity attributable to owners of the parent company
In RMB
Acquisition cost/disposal consideration
--Cash 286,000,000.00
-- Fair value of non-cash assets
Total acquisition cost/disposal consideration 286,000,000.00
Less: Share in net assets of subsidiaries calculated based on the
-16,411,028.49
acquired/disposed shareholding ratio
Difference 302,411,028.49
Including: Adjustment to capital reserves 302,411,028.49
Adjustment to surplus reserves
Adjustment to undistributed profits
Other descriptions:
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
Joint ventures
Total of the following items calculated
based on the shareholding ratio
Associates:
Total carrying amount of investment 4,123,864.73 23,882,517.37
Total of the following items calculated
based on the shareholding ratio
--Net profit -2,576,746.69 999,547.86
--Total comprehensive income -2,576,746.69 999,547.86
Other descriptions:
183
Mango Excellent Media Co., Ltd. Annual Report 2022
X. Risks Related to Financial Instruments
The Company’s risk management objectives are to achieve a proper balance between risks and yield, minimize the adverse
impacts of risks on the Company’s operation performance, and maximize the benefits of the shareholders and other stakeholders.
Based on these risk management objectives, the Company’s basic risk management strategy is to identify and analyze its exposure to
various risks, establish an appropriate maximum tolerance to risk, implement risk management, and monitor regularly and effectively
these exposures to ensure the risks are monitored at a certain level.
The Company is exposed to various risks associated with financial instruments in its daily routines, primarily including credit
risk, liquidity risk and market risk. The management has reviewed and approved policies to manage these risks, summarized as
below.
(I) Credit risk
Credit risk refers to the risk that a party of the financial instrument will default on its obligations resulting in financial loss to the
counterparty.
1. Management of credit risk
(1) Evaluation of credit
The Company assesses at each balance sheet date whether the credit risk of the underlying financial instruments has increased
significantly since initial recognition. In determining whether the credit risk has increased significantly since initial recognition, the
Company considers reasonable and supportable information that is available without undue cost or effort, including quantitative and
qualitative analysis based on historical data, ranking of external credit risks and forward-looking information. The Company
compares the risk of a default occurring on a financial instrument as at the balance sheet date with the risk of a default occurring on
the financial instrument as at the date of initial recognition based on individual financial instrument or a group of financial
instruments with similar credit risk characteristic, to determine the change of the risk of a default occurring on a financial instrument
over the expected life.
The Company considers the credit risk of financial instruments has increased significantly when one or more of the following
quantitative and qualitative criteria are met:
1) The quantitative criterion primarily refers to a certain percentage of increase in the probability of default over the remaining
life of the financial instruments as of the balance sheet date when comparing with that at initial recognition of the financial
instruments;
2) The qualitative criteria include, inter alia, adverse material changes in business or financial conditions that are expected to
cause a significant decrease in the debtor’s ability to meet its debt obligations, and an actual or expected significant adverse change in
the technological, market, economic, or legal environment of the debtor that results in a significant decrease in the debtor’s ability to
meet its debt obligations;
(2) Definition of defaulted or credit-impaired assets
A financial asset is defined as defaulted when the financial instrument meets one or more conditions stated as below, and the
criteria of defining defaulted asset is consistent with the that of defining credit-impaired asset:
1) significant financial difficulty of the debtor;
2) a breach of contract terms with binding force by the debtor;
3) it is becoming probable that the borrower will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, has granted to the
debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit loss (“ECL”)
Key parameters to measure ECL include the probability of default, loss given default and the exposure at default. The Company
established models of the probability of default, loss given default and the exposure at default on the basis of qualitative analysis on
historical statistical data (such as counterparty ranking, guarantee methods, collateral category, and repayment way) and forward-
184
Mango Excellent Media Co., Ltd. Annual Report 2022
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 (4), VII (7) and VII (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
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, 2022, the Company is exposed to certain concentration of credit risks, as
the Company’s accounts receivable from top 5 customers have accounted for 36.71% of the total balance of accounts receivable
(December 31, 2021: 53.39%). 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
Carrying amount Undiscounted contract amount Within 1 year 1-3 years Over 3 years
Bank borrowings 1,057,932,476.80 1,058,796,992.31 1,058,796,992.31
Notes payable 1,641,001,844.25 1,641,001,844.25 1,641,001,844.25
Accounts payable 4,836,096,826.84 4,836,096,826.84 4,836,096,826.84
Other payables 130,945,241.48 130,945,241.48 130,945,241.48
Lease liabilities
(including those due 182,698,775.84 202,746,787.27 59,391,064.82 78,056,864.66 65,298,857.79
within one year)
Sub-total 7,848,675,165.21 7,869,587,692.15 7,726,231,969.70 78,056,864.66 65,298,857.79
(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 39,786,903.37 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
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Mango Excellent Media Co., Ltd. Annual Report 2022
Other current
210,748,000.00 210,748,000.00 210,748,000.00
liabilities
Lease liabilities
(including those due 212,742,184.54 237,923,303.74 44,757,856.68 113,422,811.81 79,742,635.25
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
(III) Market risk
Market risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk mainly includes interest rate risk and currency risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. Since the Company’s borrowings are at fixed interest rates, fluctuations in interest rates of borrowings will not
have a material impact on the Company’s total profits or shareholders’ equity.
2. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. Since the Company mainly operates in Mainland China with its principal activities denominated in RMB, its
exposure to the currency risk due to changes in market is not material.
The closing balance of the Company’s monetary assets and liabilities dominated in foreign currencies can be referred to in Note
VII (54) 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
2,695,000,000.00 2,695,000,000.00
financial assets
1. Financial assets at fair
value through profit or 2,695,000,000.00 2,695,000,000.00
loss
(3) Derivative financial
2,695,000,000.00 2,695,000,000.00
assets
(II) Receivables financing 48,185,442.19 48,185,442.19
Total assets continuously
2,695,000,000.00 48,185,442.19 2,743,185,442.19
measured at fair value
II. Non-continuous fair
-- -- -- --
value measurement
2. Valuation techniques and qualitative and quantitative information of key parameters adopted for
continuous and non-continuous level 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.
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Mango Excellent Media Co., Ltd. Annual Report 2022
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for
continuous and non-continuous level 3 fair value measurement items
The Company’s receivables financing refers to the bank acceptances accepted by commercial banks with higher credit rating,
without quotation in the active market. The cost thereof represents the best estimate of fair value.
XII. Related Parties and Related Party Transactions
1. Parent company of the Company
Proportion of the
Proportion of the
Company’s
Name of the parent Company’s voting
Registered address Business nature Registered capital ownership interest
company right held by the
held by the parent
parent company(%)
company (%)
Planning, production
and operation of
radio and television
programs; asset
Mango Media Co., management and
PRC 2,050,000,000.00 56.09% 56.09%
Ltd. investment subject to
laws and regulations;
advertising planning,
production and
operation;
Descriptions of the Company’s parent company
Mango Media Co., Ltd., which holds 56.09% of the shares in the Company, was established on July 10, 2007 with a
registered capital of RMB2,050,000,000 and registered address and principal place of business in Golden Eagle Studio Culture
City in Kaifu District, Changsha City. GBS holds 100% shares in Mango Media Co., Ltd. Mango Media Co., Ltd. is mainly
engaged in planning, production and operation of radio and television programs; investment in culture, sports, entertainment,
media, science and technology, internet and other industries with self-owned funds (not allowed to engage in activities under
national financial supervision and financial credit businesses such as deposit absorption, fund raising and collection, entrusted loan,
bill issuance, loan issuance, etc.); advertising planning, production and operation; and multimedia technology development and
management.
The ultimate controlling party of the Company is Hunan State-owned Cultural Assets Supervision and Administration
Commission.
Other descriptions:
2. Subsidiaries of the Company
For details of the subsidiaries of the Company, see the descriptions in the accompanying Note VII.
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 VII.
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.
187
Mango Excellent Media Co., Ltd. Annual Report 2022
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 Broadcasting System Satellite TV Channel Controlled by the same actual controller
Hunan EE Advertising Co., Ltd. Controlled by the same actual controller
Yunhong Communication Technology (Guangzhou) Co., Ltd. Controlled by the same actual controller
GBS [Note 2] Controlled by the same actual controller
Subsidiaries of GBS [Note 3] Controlled by the same actual controller
Hunan Broadcasting System Controlled by the same actual controller
Subsidiaries of Hunan Broadcasting System [Note 4] Controlled by the same actual controller
Subsidiaries of Hunan TV & Broadcast Intermediary Co., Ltd.
(excluding Yunhong) [Note 5] Controlled by the same actual controller
Subsidiaries of Mango Media Co., Ltd. [Note 6] Controlled by the same actual controller
Xiao Xiang Film Group Co., Ltd. [Note 7] Controlled by the same actual controller
MIGU Culture Technology Co., Ltd. [Note 8] Company materially affected by the key officers
Other descriptions
[Note 1] Yunhong Communication Technology (Guangzhou) Co., Ltd. comprises Beijing Yunhong Wanhao Advertising Co.,
Ltd. and Shanghai Yunhong Advertising Co., Ltd.
[Note 2] GBS comprises Hunan Radio, Film and Television Group Satellite TV Channel Branch
[Note 3] The subsidiaries of GBS include Hunan Fengmang Media Co., Ltd., Hunan Public Media Co., Ltd., Hunan Economic
TV Malanshan Media Co., Ltd., Hunan Malanshanshang Media Co., Ltd., Golden Light Culture Co., Ltd., Hunan Golden Bee Audio
& Visual Publishing House Co., Ltd., Changsha Mango Cinema Student Branch Co., Ltd., Hunan Innovation Entertainment Media
Co., Ltd., Hunan TV Drama Media Co., Ltd., Hunan Broadcasting and Television Logistics Management Service Co., Ltd., Hunan
Xiangguang Property Management Co., Ltd., Hunan Broadcasting International Media Co., Ltd., Hunan International Exhibition
Center Co., Ltd., Hunan International Convention and Exhibition Center Co., Ltd., Hunan International Convention and Exhibition
Management Center Co., Ltd., Letian Entertainment (Hunan) Co., Ltd., Hunan Happy Avant Garde Media Co., Ltd., Hunan Happy
Avant Garde Tea Culture Media Co., Ltd., Hunan Happy Fishing Development Co., Ltd., Shenzhen Jiuzhitianxia Technology Co.,
Ltd., and Hunan Pingan Fairy Media Co., Ltd.
[Note 5] The subsidiaries of Hunan TV & Broadcast Intermediary Co., Ltd. include Hunan Jinyingcheng Real Estate Co., Ltd.,
Hunan Saint Tropez Investment Co., Ltd., Shanghai Jiuyou Network Technology Co., Ltd., Changsha Colorful World Co., Ltd., and
Hunan Mango Travel Investment Co. Ltd.
[Note 6] Mango Media Co., Ltd. and its subsidiaries comprise] Mango Media Co., Ltd., Hunan Mango Vision Technology Co.,
Ltd., Hunan Happy Money Microfinance Co., Ltd., Golden Eagle Broadcasting System Co., Ltd. and Hunan Pingan Little Fairy
Cultural Development Co., Ltd.
[Note 7] Xiaoxiang Film Group Co., Ltd. comprises Hunan Dangran Film Co., Ltd., Hunan Xiaoying Interactive
Entertainment Media Co., Ltd., and Hunan Xiaoying Cultural Industry Investment Co., Ltd.
[Note 8] MIGU Culture Technology Co., Ltd. comprises MIGU Video Technology Co., Ltd., MIGU Xinkong Cultural
Technology (Xiamen) Co., Ltd., MIGU Digital Media Co., Ltd., MIGU Music Co., Ltd. and MIGU Interactive Entertainment Co.,
Ltd.
5. Related party transactions
(1) Sales and purchase of goods, and rendering and receipt of services
Statement of purchase of goods/ receipt of services
In RMB
188
Mango Excellent Media Co., Ltd. Annual Report 2022
Whether exceeding the
Details of related Amount for the Transaction quota Amount for the prior
Related parties approved transaction
party transactions current period approved period
amount
Yunhong
Communication
Technology Advertising agency 185,263,301.58 233,120,000.00 No 209,219,140.92
(Guangzhou) Co.,
Ltd
Value added share
Hunan Broadcasting of operators, brand
1,674,491.61 4,000,000.00 No 3,805,031.40
System license and
program usage fee
Publicity and
promotion, artist
agency, program
Subsidiaries of production, venue
Hunan Broadcasting exhibition and 526,415.09 3,100,000.00 No 68,743,054.93
System supporting
services, purchase
of goods, and
advertising agency
Publicity and
Hunan Broadcasting promotion, artist
System Satellite TV agency, accepting No 1,724,905.65
Channel services and
copyrights
Shanghai Mama
Mia Mutual
Merchandise sales
Entertainment
and supplier 547,062.50 Yes 1,360,895.71
Network
charges
Technology Co.,
Ltd.
Bandwidth,
MIGU Culture copyright
Technology Co., purchase, 58,600,167.19 83,340,000.00 No 36,872,709.67
Ltd. advertising fee and
goods purchase
Purchase of
copyrights,
Hunan Broadcasting
operator sharing,
and Film Group Co., 550,699,612.49 660,000,000.00 No 732,959,163.69
publicity and
Ltd.
promotion, and
advertising agency
Subsidiaries of Operator sharing,
Hunan TV & board and lodging
Broadcast expenses, purchase 7,748,967.46 8,500,000.00 No 12,498,312.87
Intermediary Co., of goods and site
Ltd. expenses
Artist agency,
Mango Media Co.,
technical and labor 12,128,629.83 7,270,000.00 Yes 24,809,356.57
Ltd. and subsidiaries
costs
Advertising
Hunan EE
agency, internet
Advertising Co., 2,698,445.39 97,360,000.00 No 77,336,094.65
access cooperation
Ltd.
fees
Xiao Xiang Film Copyright
158,491,887.45 2,000,000.00 Yes 1,769,911.50
Group Co., Ltd. purchase
Commodity
purchase, program
production,
publicity and
Subsidiaries of GBS promotion, 79,745,561.94 36,000,000.00 Yes
copyright
purchase, and
advertising agency
service
189
Mango Excellent Media Co., Ltd. Annual Report 2022
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 804,836,021.38 765,968,272.87
Ltd
Hunan Broadcasting and Film Advertising, release income,
775,519,960.53 1,684,145,199.13
Group Co., Ltd. publicity and promotion
Advertising, release income,
Hunan Broadcasting System 1,694,883.18 619,469.03
and sales of goods
Hunan Broadcasting System Release income and rendering
3,069,701.06
Satellite TV Channel of services
Advertising, artist income,
Subsidiaries of Hunan
derivatives business and sales 3,303,257.24 5,961,199.88
Broadcasting System
of goods
Shanghai Mama Mia Mutual
Sales of goods and supplier
Entertainment Network 642,662.54 146,432.71
charge
Technology Co., Ltd.
Operator income, advertising,
MIGU Culture Technology membership rights and
2,166,512,518.08 1,650,532,231.02
Co., Ltd. interests, derivative sales, and
commodity sales
Hunan EE Advertising Co., Advertising and commodity
29,240,355.34 673,438,735.02
Ltd. sales
Mango Media Co., Ltd. and its Artist income, merchandise
1,422,806.62 156,799,987.36
subsidiaries sales, and distribution income
Xiaoxiang Film Group Co.,
Copyright transfer 2,005,001.63 185,238.06
Ltd.
Artist income, copyright sales,
publicity and promotion,
Subsidiaries of GBS 19,313,027.94
advertising, and commodity
sales
Subsidiaries of Hunan TV &
Broadcast Intermediary Co., Program production cost 377,358.80
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 leases
The Company as the lessor:
In RMB
Lease income recognized in Lease income recognized in
Name of lessee Category of leased assets
the current period the prior period
Mango Media Co., Ltd. and Lease and property
150,000.00 561,203.27
its subsidiaries management
Hunan Broadcasting System Lease and property
4,052,832.85
and its subsidiaries management
The Company as the lessee:
In RMB
Expenses Variable lease
Catego Assumed interest
related to payments Added use right
Lessor ry of Paid rent expenses of lease
short-term through profit assets
leased liabilities
leases and low- or loss not
190
Mango Excellent Media Co., Ltd. Annual Report 2022
assets value assets included in the
leases subject measurement
to simplified of lease
treatment, if liabilities, if
any any
Amo Amo
Amo Amo Amo
unt unt
unt unt unt
for for Amount Amount Amount Amount Amount
for for for
the the for the for the for the for the for the
the the the
curre curre current prior current prior current
prior prior prior
nt nt period period period period period
perio perio perio
perio perio
d d d
d d
Subsidiar
Buildi 20,948,24 3,301,84 3,361,745.
ies of
ngs 3.47 0.93 10
GBS
Subsidiar
ies of
Hunan Buildi 30,072,69 559,675. 2,293,52
64,564.85
Broadcas ngs 4.74 42 6.45
ting
System
Subsidiar
ies of
Hunan
TV &
Buildi 11,096,46 7,058,274. 771,933. 566,308. 10,308,54
Broadcas
ngs 5.56 13 97 07 1.44
t
Intermedi
ary Co.,
Ltd.
(3) Compensation for key management
In RMB
Item Amount for the current period Amount for the prior period
Compensation for key management
34,612,300.00 28,980,000.00
personnel
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
Accounts
GBS 561,086,053.15 1,039,093,242.60
receivable
Accounts Subsidiaries of
990,081.81
receivable GBS
Tianjin Sunshine
Accounts Meichuang
766,557.10 766,557.10 766,557.10 766,557.10
receivable Technology Co.,
Ltd.
Accounts Tianjin Sunshine 104,970,272.61 33,794,156.81
191
Mango Excellent Media Co., Ltd. Annual Report 2022
receivable Meichuang
Technology Co.,
Ltd.
MIGU Culture
Accounts
Technology Co., 435,996,686.27 21,941,878.57 283,182,835.10 14,159,141.76
receivable
Ltd.
Subsidiaries of
Hunan TV &
Accounts
Broadcast 4,503.00 4,503.00
receivable
Intermediary Co.,
Ltd.
Subsidiaries of
Accounts Hunan
7,313,220.54 7,618,619.30
receivable Broadcasting
System
Hunan EE
Accounts
Advertising Co., 273,927,032.36 347,838,043.25
receivable
Ltd.
Mango Media
Accounts
Co., Ltd. and its 462,381.60 348,640.12
receivable
subsidiaries
Shanghai Mama
Mia Mutual
Accounts Entertainment
8,310.60 831.06 8,310.60 415.53
receivable Network
Technology Co.,
Ltd.
Accounts Xiaoxiang Film
331,400.00 186,352.35
receivable Group Co., Ltd.
Subtotal 1,385,856,499.04 22,709,266.73 1,712,841,260.23 14,926,114.39
Notes receivable GBS 12,000,000.00
MIGU Culture
Notes receivable Technology Co., 1,371,194,442.95 661,742,339.23
Ltd.
Yunhong
Communication
Notes receivable Technology 50,000,000.00
(Guangzhou) Co.,
Ltd
Subtotal 1,421,194,442.95 673,742,339.23
Hunan EE
Receivable
Advertising Co., 12,000,000.00
financing
Ltd.
Receivable
GBS 30,300,000.00 43,200,000.00
financing
Subtotal 30,300,000.00 55,200,000.00
Subsidiaries of
Hunan TV &
Prepayments Broadcast 3,568.00 160,628.95
Intermediary Co.,
Ltd.
Subsidiaries of
Hunan
Prepayments 2,515,982.48
Broadcasting
System
Tianjin Sunshine
Prepayments 6,014,723.96 6,014,723.96 6,014,723.96 6,014,723.96
Meichuang
192
Mango Excellent Media Co., Ltd. Annual Report 2022
Technology Co.,
Ltd.
Prepayments GBS 2,264.15
Subsidiaries of
Prepayments 2,617,385.23
GBS
Shanghai Mama
Mia Mutual
Entertainment
Prepayments 13,399.99 13,399.99
Network
Technology Co.,
Ltd.
Mango Media
Prepayments Co., Ltd. and its 26,493.58 23,893.82
subsidiaries
Subtotal 8,675,570.76 6,014,723.96 8,730,893.35 6,014,723.96
Subsidiaries of
Hunan
Other receivables 756,045.00 1,761,126.00
Broadcasting
System
Subsidiaries of
Hunan TV &
Other receivables Broadcast 1,214,941.00 1,412,441.00
Intermediary Co.,
Ltd.
Shanghai Mama
Mia Mutual
Entertainment
Other receivables 2,329,764.69 2,329,764.69 2,629,764.69 2,629,764.69
Network
Technology Co.,
Ltd.
Other receivables GBS 100,000.00
Subsidiaries of
Other receivables 1,005,081.00
GBS
Mango Media
Other receivables Co., Ltd. and its 928,917.89 921,193.47
subsidiaries
Hunan
Other receivables Broadcasting 30,000.00 30,000.00
System
Xiaoxiang Film
Other receivables 50,822.65
Group Co., Ltd.
Subtotal 6,264,749.58 2,329,764.69 6,905,347.81 2,629,764.69
MIGU Culture
Contract assets Technology Co., 530,029,532.96 520,037,950.51
Ltd.
Subtotal 530,029,532.96 520,037,950.51
Hunan EE
Other current
Advertising Co., 707,547.16
assets
Ltd.
Subtotal 707,547.16
(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
Accounts receivable Yunhong Communication 230,784,237.63 237,264,113.11
193
Mango Excellent Media Co., Ltd. Annual Report 2022
Technology (Guangzhou) Co.,
Ltd
Accounts receivable Hunan Broadcasting System 7,601,886.80 20,290,566.05
Accounts receivable GBS 88,018,798.37 97,676,655.77
Accounts receivable Subsidiaries of GBS 3,474,774.03
Shanghai Mama Mia Mutual
Accounts receivable Entertainment Network 359,769.40 61,546.13
Technology Co., Ltd.
Tianjin Sunshine Meichuang
Accounts receivable 24,449.42
Technology Co., Ltd.
MIGU Culture Technology Co.,
Accounts receivable 41,206,169.39 13,758,167.93
Ltd.
Subsidiaries of Hunan TV &
Accounts receivable Broadcast Intermediary Co., 22,000.30 76,946.59
Ltd.
Subsidiaries of Hunan
Accounts receivable 9,404,343.82
Broadcasting System
Mango Media Co., Ltd. and its
Accounts receivable 78,421.84 1,055,662.29
subsidiaries
Accounts receivable Hunan EE Advertising Co., Ltd. 132,483,303.41 169,921,580.33
Accounts receivable Xiaoxiang Film Group Co., Ltd. 47,548,491.26
Subtotal 551,577,852.43 549,534,031.44
Contract liabilities Hunan Broadcasting System 1,886,792.45 1,886,792.45
MIGU Culture Technology Co.,
Contract liabilities 3,628,680.18 2,907,212.61
Ltd.
Subsidiaries of Hunan TV &
Contract liabilities Broadcast Intermediary Co., 1,573,712.60
Ltd.
Contract liabilities Hunan EE Advertising Co., Ltd. 188,679.25 358,490.58
Mango Media Co., Ltd. and its
Contract liabilities 31,720.00
subsidiaries
Contract liabilities Subsidiaries of GBS 1,296,394.11
Contract liabilities Xiaoxiang Film Group Co., Ltd. 15,860.00
Yunhong Communication
Contract liabilities Technology (Guangzhou) Co., 188,452.84
Ltd
Subtotal 7,204,858.83 6,757,928.24
Subsidiaries of Hunan TV &
Other payables Broadcast Intermediary Co., 88,384.49 903,112.55
Ltd.
Other payables Hunan Broadcasting System 5,667.77 172,249.06
Mango Media Co., Ltd. and its
Other payables 15,801,134.25 3,798,949.15
subsidiaries
Subsidiaries of Hunan
Other payables 2,373,786.45 5,168,933.76
Broadcasting System
Other payables GBS 28,051.10
Other payables Subsidiaries of GBS 3,542,568.71
MIGU Culture Technology Co.,
Other payables 3,000.00
Ltd.
Subtotal 21,842,592.77 10,043,244.52
Subsidiaries of Hunan TV &
Other current liabilities Broadcast Intermediary Co., 5,595,825.03
Ltd.
Other current liabilities Hunan Broadcasting System 113,207.55
Subsidiaries of Hunan
Other current liabilities 12,506,214.32
Broadcasting System
MIGU Culture Technology Co.,
Other current liabilities 210,754,333.88
Ltd.
Other current liabilities Hunan EE Advertising Co., Ltd. 11,320.75
Subtotal 124,528.30 228,856,373.23
Subsidiaries of Hunan TV &
Non-current liabilities due
Broadcast Intermediary Co., 9,902,766.53 8,952,558.55
within one year
Ltd.
Non-current liabilities due Subsidiaries of Hunan
11,062,016.76
within one year Broadcasting System
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Non-current liabilities due
Subsidiaries of GBS 18,456,135.43
within one year
Subtotal 28,358,901.96 20,014,575.31
Subsidiaries of Hunan TV &
Lease liabilities Broadcast Intermediary Co., 5,835,350.63 11,051,946.09
Ltd.
Subsidiaries of Hunan
Lease liabilities 14,791,685.46 60,992,717.01
Broadcasting System
Lease liabilities Subsidiaries of GBS 44,407,335.14
Subtotal 65,034,371.23 72,044,663.10
XIII. Share-Based Payment
1. Overview of shared-based payment
□Applicable N/A
2. Equity-settled share-based payment
□Applicable N/A
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 2,439.67 2,329.72
Total 2,439.67 2,329.72
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
Total 163,713.00 218,284.00
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. Beijing Guolong Film Investment Co., Ltd.(hereinafter referred to as “Guolong”) is a debtor to Lead Capital Management
Co., Ltd. (hereinafter referred to as “Lead Capital”), and Happy Sunshine purchased the exclusive information network
dissemination right for the TV series “If Paris Downcast” from Guolong at a total licensing fee of RMB74.4 million. Happy
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Sunshine has already made the down payment of 22.32 million. As Guolong has not fully delivered the copyright chain of the
works, Happy Sunshine has not made the remaining two payments of RMB 52.08 million in total. In August 2019, Lead Capital
filed a subrogation lawsuit against Happy Sunshine with Changsha Intermediate People’s Court, requesting Happy Sunshine to
settle the payment and liquidated damages of approximately RMB20,461,100 to Lead Capital on behalf of Guolong. During the
litigation, Lead Capital applied with the Changsha Intermediate People’s Court for property preservation, as a result of which
RMB21 million in the account opened at the Business Department of CZBank Changsha Branch under the name of Happy
Sunshine. Happy Sunshine sued Guolong in a separate case on the grounds that Guolong failed to fulfill the main obligations
under the contract, requesting the termination of the copyright procurement contract. In the ruling in effect, it is found that the
copyright procurement contract for “If Paris Downcast” should be terminated, Guolong should pay liquidated damages of RMB
2.98 million to Happy Sunshine, and the amount of the royalty to be paid by Happy Sunshine to Guolong should be tried in a
separate case.
The subrogation case of Lead Capital v. Sunshine was heard by the Hunan Provincial Higher People’s Court as the court of
second instance. As Guolong, a key party in the case, was ruled bankrupt during the second instance, the trial of the case was
suspended.
2. A dispute arose between Shandong Yuquan Tianyuan Agricultural Comprehensive Development Co., Ltd. (hereinafter
referred to as “Shandong Yuquan”) and Shanghai Mangofun Technology Co., Ltd. (hereinafter referred to as “Mangofun”) due to
their cooperation in the “Happy Mango” offline experience park, trademark licensing and other matters. Shandong Yuquan sued
Mangofun at the People’s Court of Lanshan District, Linyi City, Shandong Province, requesting an order to rescind the “Happy
Mango” experience park cooperation agreement, where Mangofun should compensate Shandong Yuquan for an economic loss of
RMB6,809,800, and applied to the People’s Court of Lanshan District for property preservation in the litigation, freezing RMB1.6
million in the China Merchants Bank account under the name of Mangofun. Mangofun filed a counterclaim, requesting an order to
rescind the “Happy Mango” experience park cooperation agreement, where Shandong Yuquan should pay Mangofun a brand usage
fee and liquidated damages of RMB13.006 million in total. According to the first-instance judgment made by the People’s Court of
Lanshan District, Shandong Yuquan should pay Mangofun RMB1.7 million, and Mangofun should pay Shandong Yuquan
RMB512,116 and a preservation fee of RMB5,000. Now the case has been appealed to the Lanshan Municipal Intermediate
People’s Court. The result is subject to the court judgment.
3. Guangzhou Tuoying Culture Communications Co., Ltd. (hereinafter referred to as “Guangzhou Tuoying”) sued Protium
Deuterium Tritium (Guangzhou) Industrial Operation and Management Co., Ltd. (hereinafter referred to as “Protium Deuterium
Tritium”) at the People’s Court of Tianhe District, Guangzhou in April 2022, claiming that Protium Deuterium Tritium failed to
pay Guangzhou Tuoying Company for the stage setting and stage construction costs for the third and fourth episodes of the “Great
Escape 2” so that Protium Deuterium Tritium should pay RMB3.7004 million to Guangzhou Tuoying; Guangzhou Tuoying also
sued Happy Sunshine for its failure to broadcast the program and pay the corresponding fund to Protium Deuterium Tritium,
holding that Happy Sunshine should be jointly and severally liable for compensation. As Happy Sunshine held that Protium
Deuterium Tritium failed to pay for advertising, Happy Sunshine failed to pay the production fee to Protium Deuterium Tritium
and has already delivered a debt offset notice to Protium Deuterium Tritium. The hearing of the case has been started for decision.
(2) Please make corresponding clarification if the Company has no significant contingency to be disclosed
The Company has no significant contingencies to be disclosed.
XV. Events Subsequent to the Balance Sheet Date
1. 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
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XVI. Other Significant Events
1. Debt structuring
The Company as the creditor
Increase in equity investment in a
Debt Loss and income Proportion of equity investment
Book value of joint venture or joint operation
restructuring related to debt in total shares in a joint venture
creditor’s rights enterprise arising from debt
form restructuring or joint operation enterprise
restructuring
Debts settled with
67,089,845.29 27,219,600.00
assets
2. 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
Mango TV Internet interactive
Content E- Inter-segment
Item Video Business entertainment Others Total
business offset
content production
and operation
Income from
2,136,369,043.6
principal operating 10,417,661,860.99 1,118,058,249.34 16,292,021.76 13,688,381,175.77
8
activities
Cost of principal 1,999,701,035.4
6,135,708,871.91 903,918,572.35 14,003,554.74 9,053,332,034.45
operating activities 5
(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.
3. Others
1. The Company as the lessee
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Mango Excellent Media Co., Ltd. Annual Report 2022
(1) For the relevant information of use right assets, see Note VII (14) to the financial statements hereof.
(2) Current profit or loss and cash flow related to leasing
Item Current amount Amount in the same period last
year
Interest expenditure on lease liabilities 9,301,906.56 5,819,271.54
Income from the sublease of right-of-use assets 7,990,890.37 9,341,266.04
Total lease-related cash outflow 64,204,383.75 64,826,084.84
(3) For the maturity analysis of lease liabilities and the corresponding liquidity risk management, see Note X to the financial
statements hereof.
2. The Company as the lessor
Operating lease
(1) Lease income
Item Current amount Amount in the same period last
year
Lease income 11,353,234.87 19,143,126.43
(2) Operating lease assets
Item Closing balance (in RMB) Amount in the same period last
year
Fixed assets 22,747,860.63 34,070,036.19
Use right assets 4,732,738.24 6,884,092.38
Investment properties 50,786,391.83
Sub-total 78,266,990.70 40,954,128.57
For details of fixed assets leased out for operation, see Note VII (13) to the financial statements hereof.
(3) Undiscounted lease receipts to be received for lease in the future
Remaining term Closing balance (in RMB) Amount in the same period last year
Within 1 year 10,623,126.18 15,399,807.10
1-2 years 11,238,554.40 13,592,258.70
2-3 years 9,883,531.00 12,598,737.80
3-4 years 8,326,777.08 10,176,167.90
4-5 years 6,061,978.71 8,561,441.20
Over 5 years 5,370,943.39 11,423,322.10
Total 51,504,910.76 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 300,000,000.00 250,000,000.00
Other receivables 80,020,000.00 80,099,116.90
Total 380,020,000.00 330,099,116.90
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Mango Excellent Media Co., Ltd. Annual Report 2022
(1) Dividends receivable
1) Classification of dividends receivable
In RMB
Project (or investee) Closing balance Opening balance
Happy Sunshine 300,000,000.00 250,000,000.00
Total 300,000,000.00 250,000,000.00
2) Provision for bad debts
□Applicable N/A
Other descriptions:
(2) 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
Nature
period of the period
Petty cash 100,118.08
Amount due to or from related parties
80,020,000.00 80,000,000.00
within the scope of consolidation
Total 80,020,000.00 80,100,118.08
2) Provision for bad debts
In RMB
Stage I Stage II Stage III
Provisions for bad
Lifetime ECL (without Lifetime ECL (with Total
debts Future 12-month ECL
credit impairment) credit impairment)
Balance as at January
1,001.18 1,001.18
1, 2022
Balance as at January
1, 2022 in the current
period
Current provision -1,001.18 -1,001.18
Balance as at
0.00 0.00
December 31, 2022
Changes in book balance whose loss allowance changed significantly in the current period
□Applicable N/A
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year (inclusive) 20,000.00
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Mango Excellent Media Co., Ltd. Annual Report 2022
Over 3 years 80,000,000.00
3-4 years 80,000,000.00
Total 80,020,000.00
3) Provisions, recovery or reversal of bad debts for the period
Provision for bad debts made for the current period:
In RMB
Changes for the current period
Opening
Category Recovery or Closing balance
balance Provision Write-off Others
reversal
Aging group 1,001.18 1,001.18
Total 1,001.18 1,001.18
Including significant amounts recovered or reversed from the current provision for bad debts:
In RMB
Entity Amount of recovery or reversal Method of recovery
4) Other receivables with top five closing balance 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 3-4 years 99.98%
from subsidiaries
Ltd.
Hunan Happy
Sunshine Interactive Amount due to or
20,000.00 Within 1 year 0.02%
Entertainment Media from subsidiaries
Co., Ltd.
Total 80,020,000.00 100.00%
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 11,976,375,839.55 11,976,375,839.55 11,976,375,839.55 11,976,375,839.55
subsidiaries
Total 11,976,375,839.55 11,976,375,839.55 11,976,375,839.55 11,976,375,839.55
(1) Investments in subsidiaries
In RMB
Changes in the current period Closing
Opening balance Closing balance balance of
Investees Additional Decreased Provisions for
(carrying amount) Others (carrying amount) provisions for
investment investment impairment
bad debts
Hunan Happy
Sunshine
Interactive 10,845,049,607.62 10,845,049,607.62
Entertainment
Media Co., Ltd.
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Mango Excellent Media Co., Ltd. Annual Report 2022
Shanghai EE-
535,281,326.72 535,281,326.72
Media Co., Ltd.
Happigo Co.,
596,044,905.21 596,044,905.21
Ltd.
Total 11,976,375,839.55 11,976,375,839.55
3. Operating revenue and operating cost
In RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Other business 18,867.92
Total 18,867.92
Information on revenue:
In RMB
Category of contract Segment 1 Segment 2 Total
Commodity type
Including:
Other 18,867.92 18,867.92
By operating regions
Including:
Within Hunan Province 18,867.92 18,867.92
Type of market or
customer
Including:
Type of contract
Including:
By the time of
commodity transfer
Including:
Income recognized at a
18,867.92 18,867.92
certain time point
By the contract term
Including:
By the selling channel
Including:
Total
Information regarding performance obligations:
Wherein, revenues arising from contracts with clients are RMB18,867.92.
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 the reporting period is RMB0.00, 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.
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Mango Excellent Media Co., Ltd. Annual Report 2022
Other descriptions:
4. Investment income
In RMB
Item Amount for the current period Amount for the prior period
Long-term equity investment income
300,000,000.00 250,560,366.45
accounted by the cost method
Investment income from disposal of
4,249,700.00
long-term equity investments
Total 300,000,000.00 254,810,066.45
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 Income from scrapping of fixed assets and
807,213.90
assets disposal of assets
Government grants recognized in profit or
loss for the current period (excluding
government grants that are closely related to
46,148,191.22
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
119,290,763.72
investment or asset management
Debt restructuring loss and income 27,219,600.00
Reversal of impairment provision of
accounts receivable that have undergone 3,355,000.00
impairment test alone
Other non-operating incomes and expenses
41,319,889.16
besides the above items
Effect of minority equity 547,709.71
Total 237,592,948.29 --
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
10.20% 0.98 0.98
Company’s ordinary shareholders
Net profit attributable to the parent
company’s shareholders after
8.87% 0.85 0.85
deduction of non-recurring profit or
loss
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Mango Excellent Media Co., Ltd. Annual Report 2022
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
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