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1、2020 Annual Report of Songcheng Performance Development Co.,Ltd 1 Songcheng Performance Development Co.,Ltd 2020 Annual Report April 2021 2020 Annual Report of Songcheng Performance Development Co.,Ltd 2 Section I Important Notes,Contents And Definitions The Board of Directors,the Board of Superviso
2、rs,directors,supervisors and senior management members of the Company hereby guarantee that the information presented in this annual report is authentic,accurate,complete and free of any false records,misleading statements or material omissions,and they will bear liabilities regarding this report.Zh
3、ang Xian,Chief Executive Officer(CEO),Chen Shengmin,chief accountant,and Zhu Shana,head of accounting department(Accounting Officer)hereby declare and warrant that the financial statements in the annual report are authentic,accurate,and complete.All directors attended the meeting of the Board of Dir
4、ectors for deliberation of this annual report.There are specific reasons for the sharp decline in the Companys performance during the reporting period.Risk factors that may exist in the production and operation of the Company and countermeasures,have been detailed in the sections I.Overview and IX.P
5、rospects for Future Development of the Company of Section IV Discussion and Analysis on Business Situation of this report.Investors should be mindful to investment risks.The content concerning the future plan and performance forecast,if any,in this report shall not constitute the Companys commitment
6、 to investors and relevant persons.Investors should maintain adequate risk awareness and must understand the differences between the plans,forecasts and commitments.1.Risks of Natural Factors and Social Factors The natural and social factors such as major natural disasters,public health emergencies
7、and large social activities will affect the number of tourists received.The outbreak of COVID-19 in 2020 was a global public health event,which resulted in stagnation of tourist and cultural consumption on the site,thereby affecting the business performances of the Company.The Company may diffuse su
8、ch risks through its strategic layout,but such periodical and local risk factors are generally irresistible once they occur.2.Risks of Macroeconomic Fluctuation In 2020,COVID-19 epidemic swept the world,and accelerated the change of the world political and economic situation unseen in a century.This
9、 presented the risk of change and anxiety to Chinas economy which was in and will remain in an important period of strategic transformation and development for an extended period.The complicated and changeable domestic and international macroeconomic environments may affect the level of national inc
10、ome and further,the consumer demands,thereby affecting the operating performance of the Company.3.Competition Risks The competition risks include those from the same industry and those from the substitutes.The current high-quality development of Chinas economy and the increasing cultural consumption
11、 demands from the general public drive the rapid development of the live performance industry,particularly the tourist performance.Seeing the enormous business opportunities,a large amount of social capital swarmed into the tourist performance industry.This,on the one hand,promotes the development o
12、f the entire live performance industry,but on the other hand,inevitably intensifies the industry competition and affects the operation of the Company.Meanwhile,the performance industry in the first-tier cities has developed to a certain level,presenting a small but scattered development pattern.The
13、Company,starting as a newcomer and integrator,shall undergo market adjustment and adaptation at the initial stage.With continuous technological progress,people have more choices for their cultural consumption from the emerging market of digital cultural consumption such as short videos,movies,games,
14、TV shows,live broadcasts and VR/AR.Despite the irreplaceable 2020 Annual Report of Songcheng Performance Development Co.,Ltd 3 role of live experience,digital entertainment will attract some tourists and impact the live experience to a certain extent,affecting the operation of the Company.4.Risks in
15、 Safety Accidents Live performances being a key component in the Companys operation,may be occasionally hindered by safety accidents.Personal safety of visitors remains a major importance to the reputation of the Company.The profit distribution proposal approved by the Board of Directors is:Taking 2
16、,614,694,040 as the basis,RMB 0.5(tax included)of cash dividend and 0 bonus share(tax included)for every 10 shares will be distributed to all shareholders,and 0 share capitalized from the capital reserves will be distributed to all the shareholders for every 10 shares.Note:This document is a transla
17、ted version of the Chinese version 2020 Annual Report(“2020 年年度报告”),and the published annual report in the Chinese version shall prevail.The complete published Chinese 2020 Annual Report may be obtained at .2020 Annual Report of Songcheng Performance Development Co.,Ltd 4 Table of Contents Section I
18、 Important Notes,Contents And Definitions.2 Section II Company Profile and Key Financial Indicators.7 Section III Corporate Business Overview.12 Section IV Discussion and Analysis on Business Circumstance.15 Section V Significant Events.39 Section VI Changes in Shares and Information about Sharehold
19、ers.62 Section VII Information of Preferred Shares.70 Section VIII Convertible Corporate Bonds.71 Section IX Directors,Supervisors,Senior Managers and Employees.72 Section X Corporate Governance.80 Section XI Corporate Bonds.87 Section XII Financial Report.88 Section XIII Documents Available for Ref
20、erence.254 2020 Annual Report of Songcheng Performance Development Co.,Ltd 5 Definitions Item Refers To Definitions Company,the Company,Songcheng Performance Refers To Songcheng Performance Development Co.,Ltd Songcheng Holdings Refers To Hangzhou Songcheng Group Holdings Co.,Ltd,the controlling sha
21、reholder of the Company Songcheng Performance Valley Company Refers To Hangzhou Songcheng performance Valley technology and Culture Development Co.,Ltd,a wholly-owned subsidiary of the Company Hangzhou Paradise Company Refers To Hangzhou Paradise Co.,Ltd,a wholly-owned subsidiary of the Company Song
22、cheng Art Troupe Refers To Songcheng Performance Management Co.,Ltd,a wholly-owned subsidiary of the Company Songcheng Tourism Refers To Songcheng Tourism Development Co.,Ltd,a wholly-owned subsidiary of the Company Sanya Romance Show Company Refers To Sanya Romance Tourism Performance Co.,Ltd,a who
23、lly-owned subsidiary of the Company Lijiang Chama Ancient City Company Refers To Lijiang Chama Ancient City Tourism Development Co.,Ltd,a wholly-owned subsidiary of the Company Jiuzhai Romance Show Company Refers To Aba Zhou Jiuzhai Romance Tourism Development Co.,Ltd,a wholly-owned subsidiary of th
24、e Company Shanghai Songcheng Company Refers To Shanghai Songcheng World Expo Performance Development Co.,Ltd,a holding subsidiary of the Company Guilin Romance Show Company Refers To Guilin Lijiang Romance Performance Development Co.,Ltd,a holding subsidiary of the Company Zhangjiajie Romance Show C
25、ompany Refers To Zhangjiajie Romance Performance Development Co.,Ltd,a wholly-owned subsidiary of the Company Xian Romance Show Company Refers To Xian Romance Performance Development Co.,Ltd,a holding subsidiary of the Company Foshan Romance Show Company Refers To Foshan South Sea Qiao Mountain Cult
26、ural Tourism Development Co.,Ltd,a wholly-owned subsidiary of the Company Xitang Songcheng Performance Valley Company Refers To Zhejiang Songcheng Xitang Performance Valley Performance Development Co.,Ltd,a wholly-owned subsidiary of the Company Zhuhai Songcheng Company Refers Zhuhai Songcheng Perfo
27、rmance Kingdom Co.,Ltd,a wholly-owned subsidiary of the 2020 Annual Report of Songcheng Performance Development Co.,Ltd 6 To Company Songcheng International Refers To Songcheng Performance International Development Co.,Ltd,a wholly-owned subsidiary of the Company Songcheng Technology Refers To Hangz
28、hou Songcheng Technology Development Co.,Ltd,a wholly-owned subsidiary of the Company Dumuqiao Travel Agency Refers To Hangzhou Songcheng Dumuqiao Travel Services Co.,Ltd,a wholly-owned subsidiary of Songcheng Tourism Development Co.,Ltd,a wholly-owned subsidiary of the Company Songcheng Entertainme
29、nt Company(Australia)Refers To Songcheng(Australia)Entertainment Pty Ltd.,a wholly-owned subsidiary of Songcheng Performance International Development Co.,Ltd,a wholly-owned subsidiary of the Company Jiuzhai Tibetan Mystery Company Refers To Jiuzhaigou Tibetan Mystery Culture Co.,Ltd,a holding subsi
30、diary of the Company Huafang Technology Refers To Beijing Huafang Technology Co.,Ltd,a joint stock company of the Company China Securities Regulatory Commission(CSRC)Refers To China Securities Regulatory Commission Shenzhen Stock Exchange(SZSE)Refers To Shenzhen Stock Exchange yuan,ten thousand yuan
31、 Refers To RMB,RMB Ten Thousand 2020 Annual Report of Songcheng Performance Development Co.,Ltd 7 Section II Company Profile and Key Financial Indicators I.Company Information Stock Abbreviation Songcheng Performance Stock Code 300144 Company Name in Chinese 宋城演艺发展股份有限公司 Company Abbreviation in Chin
32、ese 宋城演艺 Company Name in Foreign Language(If any)Songcheng Performance Development Co.,Ltd Abbreviation of Company Name in Foreign Language(If any)Songcheng Performance Legal Representative Zhang Xian Registered Address 148 Zhijiang Road,Hangzhou City,Zhejiang Province Post Code of Registered Addres
33、s 310008 Office Address 148 Zhijiang Road,Hangzhou City,Zhejiang Province Post Code of Office Address 310008 Internet Website of the Company https:/ II.Contact Person and Contact Information Secretary of the Board Representative of Securities Affairs Name Hou Li Hou Li Contact Address 148 Zhijiang R
34、oad,Hangzhou City,Zhejiang Province 148 Zhijiang Road,Hangzhou City,Zhejiang Province Tel. Fax E-mail III.Information Disclosure and Location The Media Selected by the Company for Disclosure Securities Times,Securities Daily Website Designated b
35、y CSRC for Publishing Annual Report http:/ Location for Annual Report of the Company Securities Investment Department of the Company 2020 Annual Report of Songcheng Performance Development Co.,Ltd 8 IV.Other Related Information Accounting Firm Hired by the Company Name of the Accounting Firm BDO Chi
36、na Shu Lun Pan CPAs(special general partnership)Office Address of the Accounting Firm No.61 Nanjing East Road,Shanghai Name of Certified Public Accountant Ni Yilin,Jiang Xuelian The sponsor institution hired by the company to perform the continuous supervision in the reporting period Applicable Not
37、applicable The financial adviser hired by the company to perform the continuous supervision in the reporting period Applicable Not applicable V.Key Accounting Data and Financial Indicators Whether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or
38、not Yes No 2020 2019 Increase/decrease compared with previous year 2018 Operating income(RMB)902,586,125.63 2,611,753,208.86-65.44%3,211,192,814.48 Net profit attributable to shareholders of the listed Company(RMB)-1,752,398,009.60 1,339,790,994.94-230.80%1,287,186,547.41 Net profit attributable to
39、shareholders of the listed company after deducting non-recurring gains and losses(RMB)-1,767,861,638.68 1,222,100,617.31-244.66%1,279,733,108.31 Net cash flow generated by operational activities(RMB)393,941,899.94 1,571,451,499.51-74.93%1,647,243,748.01 Basic Earnings per Share(RMB/Share)-0.6702 0.5
40、124-230.80%0.8861 Diluted Earnings per Share(RMB/Share)-0.6702 0.5124-230.80%0.8861 Weighted Average ROE-20.50%14.52%-35.02%16.38%End of 2020 End of 2019 Increase/Decrease at the end of the current year compared with the end of the previous year End of 2018 Total assets(RMB)9,195,342,831.06 11,041,0
41、76,933.58-16.72%10,817,160,458.62 Net assets attributable to shareholders of the listed company(RMB)7,412,287,432.06 9,614,069,166.64-22.90%8,471,075,013.49 2020 Annual Report of Songcheng Performance Development Co.,Ltd 9 The lower of the Companys net profit before and after deduction of non-recurr
42、ing profit and loss for the last three fiscal years is negative,and the audit report for the latest year shows that there is uncertainty about the Companys ability to continue operating Yes No The lower of net profit before and after deduction of non-recurring profit and loss is negative Yes No Item
43、 2020 2019 Notes Operating income(RMB)902,586,125.63/Total Operating Income Amount deducted from operating income(RMB)6,381,032.95/Income from personnel dispatch management and other miscellaneous businesses Amount of operating income after deduction(RMB)896,205,092.68/Operating income of main busin
44、ess Total share capital of the Company as at the trading date preceding the disclosure:Total share capital of the Company as at the trading date preceding the disclosure(share)2,614,694,040 Whether the share capital has been changed for issuance of new shares,addition,allotment,exercise of equity in
45、centives and buy-back,and whether the amount of the owners equity is influenced from the end of the reporting period of the Company to the disclosure date of the annual report Yes No Preferred stock dividends paid 0.00 Fully diluted earnings per share calculated with the latest share capital(RMB/sha
46、re)-0.6702 VI.Key Financial Indicators by Quarter Unit:RMB Q1 Q2 Q3 Q4 Operating income 134,352,197.80 148,522,407.15 335,646,114.92 284,065,405.76 Net profit attributable to shareholders of the listed company 49,960,280.55-10,112,011.86 93,903,527.78-1,886,149,806.07 Net profit attributable to shar
47、eholders of the listed company after deducting non-recurring gains and losses 18,467,729.86 1,512,334.57 91,357,882.55-1,879,199,585.66 Net cash flow generated by operating activities-20,444,426.81-103,304,029.48 282,447,994.96 235,242,361.27 Whether the above financial indicators or their totals ar
48、e significantly different from the financial indicators disclosed in the Companys quarterly and semi-annual reports Yes No 2020 Annual Report of Songcheng Performance Development Co.,Ltd 10 VII.Differences in Accounting Data Under Domestic and Foreign Accounting Standards 1.Differences of net profit
49、s and net assets in the financial reports disclosed according to the international accounting standards and Chinese accounting standards Applicable Not applicable During the reporting period of the company,there is no difference between the net profits and net assets in the financial reports disclos
50、ed according to international accounting standards and Chinese accounting standards.(2)Differences between the net profits and net assets in the financial reports disclosed according to the overseas accounting standards and Chinese accounting standards Applicable Not applicable During the reporting
51、period of the company,there is no difference between the net profits and net assets in the financial reports disclosed according to overseas accounting standards and Chinese accounting standards.3.Reasons for differences in accounting data under domestic and overseas accounting standards Applicable
52、Not applicable VIII.Non-recurring Gains and Losses Items and Their Amounts Applicable Not applicable Unit:RMB Item Amount in 2020 Amount in 2019 Amount in 2018 Note Profits or losses from disposal of non-current assets(including the write-off for the accrued impairment of assets)-37,625,882.13 70,97
53、0,952.64-30,333,257.21 The government subsidies included in the current profits and losses(excluding the government subsidies closely related to regular businesses of the Company and issued in the quota or quantity based on the national standards)35,618,594.19 5,629,978.38 12,326,627.98 Gains or los
54、ses from investment or asset management entrusted to others 25,795,007.28 Profits and losses resulting from the changes in fair value for holding trading financial assets,derivative financial assets and trading financial liabilities,derivative financial liabilities and investment income from disposa
55、l of trading financial assets,derivative financial assets,trading financial 19,619,586.83 52,061,383.80 21,276,486.89 2020 Annual Report of Songcheng Performance Development Co.,Ltd 11 Item Amount in 2020 Amount in 2019 Amount in 2018 Note liabilities,derivative financial liabilities,and other oblig
56、atory right investment,excluding the effective hedging businesses related to the regular business operation of the Company Non-Operating Revenue and expenses other than the above-509,618.20-19,029,327.85-21,969,795.85 Less:Impact of income tax 2,230,795.39-7,184,125.78 556,654.96 Impact of minority
57、equity(after tax)-591,743.78-873,264.88-915,024.97 Total 15,463,629.08 117,690,377.63 7,453,439.10-For items defined as non-recurring gains and losses according to the No.1 Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to Public-Non-recurring Gains and Lo
58、sses,or non-recurring gains and losses items listed in the said document defined as recurring ones,please specify the reasons.Applicable Not applicable In the reporting period,the Company did not define any non-recurring gains and losses items defined and listed in the No.1 Explanatory Announcement
59、on Information Disclosure for Companies Offering Their Securities to Public-Non-recurring Gains and Losses,as recurring gains and losses items.2020 Annual Report of Songcheng Performance Development Co.,Ltd 12 Section III Corporate Business Overview I.The Principal Business of the Company during the
60、 Reporting Period 1.Vision and mission The Company upholds the philosophy of a drop of water in need,shall be returned with a spring in deed,to provide customers with warm on-site entertainment experiences.It is dedicated to telling global stories of Chinese culture,promoting confidence of the natio
61、n,and striving to become the worlds premier company in cultural performing arts.2.Main business and products During the reporting period,the Company was mainly engaged in cultural performance business.On-site performance and tourism and recreation are the Companys main businesses.Live performance is
62、 the Companys core business and main source of incomes and profits.Based on the Companys two major brands of Songcheng and Romantic Show,the original business mode of theme park+cultural performance provides customers with theme park amusement and a variety of shows.Business income mainly comes from
63、 sales of tickets.Projects under operation include Romantic Show of Songcheng,Romantic Show of Sanya,Romantic Show of Lijiang,Romantic Show of Jiuzhai,Romantic Show of Guilin,Romantic Show of Zhangjiajie,and Romantic Show of Xian.The Songcheng project in Shanghai will be unveiled on April 29,2021,an
64、d projects under construction in Foshan,Xitang,and Zhuhai will also be introduced to the market.Tourism and recreation mainly refer to light-asset output business and online sales of tickets.Based on the Companys business capabilities and brand accumulation over the years,the light-asset output busi
65、ness provides partners with brand authorization,planning and design,director and creation,entrusted operation and other services,and realizes business income by a package of service fees and entrusted operation management fees.The light-asset output projects in operation include Romantic Show of Tan
66、he,Romantic Show of Mingyue(Moon)and Romantic Show of Huangdi(Yellow Emperor).Online sales of tickets refer to online direct sales and distribution of tickets of performances and projects operated by the Company,and sales of joint tickets and ticket packages with third-party tourist attractions.II.M
67、aterial Changes to Major Assets 1.Major changes in main assets Major Assets Explanation Of Material Changes Equity assets At the end of the reporting period,the long-term equity investment decreased by RMB 1,934,056,500 compared with the beginning of the period,which was mainly due to the impairment
68、 of the long-term equity investment of Huafang Technology held by the Company during the reporting period.Fixed Assets By the end of the reporting period,the fixed assets increased by RMB 197,503,700 compared with the beginning of the period,which was mainly due to conversion of the Companys project
69、s in construction to fixed assets during the reporting period.Intangible Assets At the end of the reporting period,the intangible assets increased by RMB 381,541,800 compared with the beginning of the period,mainly due to the acquisition of land use rights by Zhuhai Songcheng Performance Kingdom dur
70、ing the reporting period.2020 Annual Report of Songcheng Performance Development Co.,Ltd 13 Projects under Construction By the end of the reporting period,projects in construction increased by RMB 401,871,300 compared with the beginning of the period,which was mainly due to the increased investment
71、in construction by the Company during the reporting period.2.Major overseas assets Applicable Not applicable Details of the Assets Causes Asset Size Location Operation Mode Control Measures to Ensure Asset Safety Income Status Proportion of Foreign Assets in Companys Net Assets Significant Risk of I
72、mpairment Land Purchase 448,900 square meters Gold Coast,Queensland,Australia Theme park+Art performance Suspended 3.80%No Other Information N/A III.Core Competitiveness Analysis Through continuous efforts,the Company has established a nationwide chain operation,with more than 40 million regular aud
73、iences per year.Our market share ranks among the top and continues to increase,with rising efficiency in resource allocation and brand influence.As a leading enterprise in Chinas performing arts industry,the Companys core competitiveness is mainly reflected in the following aspects:1.Advantages of b
74、usiness mode Centering on performing arts in theme parks with creativity,the Company is different from traditional companies in performing arts and tourism.The business mode of theme park+cultural performance helps solve high performance costs,high traffic attraction costs,and low frequency of audie
75、nce replacement faced by common performing arts enterprises without self-owned venues.For the tourism industry,the mode has overcome shortcomings of insufficient core competitiveness,poor reproducibility,excessive reliance on large-scale and costly amusement equipment,low marginal effect,homogeneous
76、 services,and weak profitability experienced by more traditional enterprises.From the Romantic Show model of one show,one park,the Company is transforming to the performing arts kingdom of multiple theaters,shows,activities,and tickets,a move to expand its business content by enriching the performin
77、g art experience for stronger competitiveness.2.Advantages in creation and design The Company has an experienced,professional and independent team in planning,design,creation and performance.In the planning and design of theme parks and creation of performance products,team members can fully integra
78、te their own innovative ideas through a deep understanding of local culture.During operation,new elements can be included in a timely manner according to changes in the industry and the market.Simultaneously,inspiration and creativity are encouraged to constantly upgrade products and services for be
79、tter tourist experiences.The advantages in creation and design are an important guarantee for the Company to advance through exciting innovation and breakthroughs.3.Professional advantages After years of development in the performing arts industry,the Company has accumulated and trained a large numb
80、er of professional talents,and established a standardized operation and management system,with a strong understanding of 2020 Annual Report of Songcheng Performance Development Co.,Ltd 14 development laws and features of the industry.The Company has become highly skilled in project site selection,in
81、vestment control,performing arts creativity and design,stage presentation,costume props,scenic spot operation,viewing experience,and daily management.4.Marketing advantages As internet,mobile internet,and new media are on the rise,the Company took advantage of its creative capabilities,and conducted
82、 online and offline creative marketing.Topics were made to promote spontaneous media dissemination to realize low-cost coverage of consumers,therefore providing market expansion and income growth in the process.In a time when Generation Z has gradually become the main consumer force,the Companys fle
83、xible marketing strategies ensures target groups to be covered through online short videos,in-depth offline promotion and on-site activities.5.Advantages in on-site experience Internet and mobile internet have changed the business models of many traditional industries,and have brought a number of ex
84、isting industries considerable impacts and challenges.However,they cannot replace the enrichment gained through on-site experience and participation to meet peoples spiritual and cultural needs at higher levels.In an era with changing technological innovation,the Companys advantages in outstanding o
85、n-site experiences are becoming more obvious.6.Closed-loop advantages The Company has closed-loop teams covering the entire industry chain from site selection,planning and design,investment and construction,direction and creation,opening planning,operation management,continuous improvement,event pla
86、nning,ticket price system setting,and marketing.The closed-loop coverage of the entire industry chain contributes in controlling costs,improving efficiency,and enhancing profitability of the Company.7.Platform advantages Thanks to continuous development and expansion,the Company has a leading positi
87、on in the number of projects,theaters and seats,performances,and audiences.It has initially established a cultural performance platform covering first-tier tourism and leisure destinations and urban clusters across the country.The large scale and huge tourist base will help the Company expand its bu
88、siness boundaries,reduce marginal costs,improve operational efficiency,enhance brand influence and create performance products with brand and its exclusive and innovative features.8.Brand advantages As the largest performing arts group in China,Songcheng Performances Songcheng and Romantic Show have
89、 become representative brands in live performing arts and creative industries.Our good market reputation and strong brand influence have benefited the Company in project expansion,resource control,talent attraction,and market development.9.Advantages in locations The Company took the lead in busines
90、ses in important cities and first-tier tourism and leisure destinations in the country,and has advantages in locations.As urban performing arts continue to advance,the Company will gradually move into mega and large cities,and continue to strengthen and consolidate its position.2020 Annual Report of
91、 Songcheng Performance Development Co.,Ltd 15 Section IV Discussion and Analysis on Business Circumstance I.Overview 2020 is an extraordinary year in the history of the world,a year of ups and downs.The spread of COVID-19 in more than 199 countries and regions has taken a toll on human life safety a
92、nd global economic development,and significantly raised the risk of economic recession and uncertainties through out the world.The disrupted supply chains,shrinking consumption and investment demand,weakened economic activities,and impaired market confidence have brought unprecedented challenges to
93、the resilience and governance of countries and economic entities.The year of 2020 is also full of critical challenges for the cultural and travel industry.The industry was in a standstill the first half of the year yet managed to recover in the second half of the year when the epidemic receded.The r
94、oad was a bumpy one,yet in recovery,new opportunities arose.As the last year for China to build a moderately prosperous society in an all-round way and the 13th Five-Year Plan,2020 is a historical transition period from the 13th Five-Year Plan to the 14th Five-Year Plan.It is also a time for China t
95、o strive for high-quality economic development with an optimized industrial structure by weighing the modern service industry more.To answer the strategic call for high-quality development,the cultural and tourist industries have entered a new stage for better quality,efficiency,and will become the
96、new powerhouse for further economic growth.During the reporting period,the Companys scenic spots suspended operations from January 24,2020,and resumed operations on June 12,2020.The Company has fully prepared itself to turn crises into opportunities through well balanced epidemic controls and strong
97、 corporate oversight.With effective epidemic prevention in place,the Company has optimized and upgraded the hardware,software,marketing,and organizational structure during park closure.Meanwhile,improvement of various projects was also implemented.Hangzhou Songcheng,as a test field,was rebuilt into
98、a new Hangzhou Songcheng Performing Kingdom.The mode of one show,one park,one ticket was transformed and upgraded to a performing arts platform with multiple shows and combination of a variety of tickets.Since resumption of business,the Company has been fully prepared to actively promote its market
99、recovery of tourists and revenue through online new media,short videos,offline promotion,special markets and activities and other marketing methods.In terms of new projects,Xian and the light-asset project in Zhengzhou successfully presented first shows,projects in Shanghai,Foshan,and Xitang were pr
100、ogressing,the Zhuhai project started construction,and the contracgt for the light-asset project in Yanan project was signed,providing significant momentum for the Companys future growth.During the reporting period,the Company achieved operating income of RMB 902,586,100,a year-on-year decrease of 65
101、.44%;net profit attributable to shareholders of the listed company was-1,752,398,000,a year-on-year decrease of 230.80%;net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss was-1,767,861,600 yuan,a year-on-year decrease of 244.66%.Excluding the
102、financial data of the digital entertainment platform and the increase or decrease in the long-term equity investment of Huafang Technology,the Companys pro forma profit statement is as follows:During the reporting period,the Company achieved operating income of RMB 902,586,100,a year-on-year decreas
103、e of 59.50%;net profit attributable to shareholders of the listed company was 113,724,700 yuan,a year-on-year decrease of 89.11%;net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss was 98,261,100 yuan,a year-on-year decrease of 90.86%.The key t
104、asks carried out by the Company during the reporting period are as follows:2020 Annual Report of Songcheng Performance Development Co.,Ltd 16(I)Hardware expansion 1.Increase the type and number of theaters With Hangzhou Songcheng as a model,the Company deeply explored existing resources of scenic sp
105、ots to introduce different types of indoor and outdoor performance venues with varied experiences.It built upgraded standard theaters,walk-around theaters,cliff theaters,forest theaters,floating theater and other new theaters,delivering new and extraordinary experiences to its guests.No.2 and No.3 R
106、omantic Show Theater is an upgraded version of the Companys standard theaters.The combination of the cliff theater and elegant music,and the forest theater and popular fashion provide visitors with more choices.During the reporting period,10 indoor and outdoor theaters and more than 10,000 seats wer
107、e added in the Hangzhou Songcheng scenic spot during business suspension in response to the epidemic.No.2 and other types of theaters were added to existing or new projects to further expand the capacity.The continuous increase in the number of theaters and seats is conducive to diversified performa
108、nces,larger reception capacity,and better tourist experiences.It also makes it possible in hardware to provide products,content,and tickets on many different levels.2.Extend touring routes Taking Sanya as an example,the original touring route was only a few hundred meters long.With diversion and agg
109、regation,the route length was extended by 3 to 4 times by combining underutilized space.Another example is the restructuring of Hangzhou Songcheng.Without expanding the area,the play route was redesigned,and indoor and outdoor small theaters,and interactive spaces were added with a series of new per
110、formances.These measures have improved the tourist experience and effectively extended park visitor duration.3.New popular sites The Generation Z loves recommending and sharing.Growing up in the internet era,their consumption is trendier and more individual.To meet the needs of young people,the Comp
111、anys scenic spots have created many popular sites,including Glass Skywalk,Setting of Marionette,Sky Tree,Setting of Ayue out of Bath,interactive amusement park of oiled paper umbrellas,love like device,sound post office,and 3D printing wall.The introduction of the role play hall is also favored by y
112、oung people,enhancing their experience and atmosphere of the scenic spot.4.Improved supporting facilities Supporting facilities were further improved in scenic spots.Landscape design and presentation were enhanced with more large entrance halls and rest areas.While increasing the proportion of self-
113、operated businesses,the Company will continue to build all-weather,comfortable,convenient and safe scenic spots for all.Hangzhou Songcheng for example,two newly built large food courts can accommodate 1,500 people at the same time,bringing a variety of delicious foods to meet guests expectations.At
114、the same time,the proportion of self-operated shops was also expanded in projects in other parks to upgrade product types,quality control,and hardware.(II)Content upgrade With continuous expansion of our commercial landscape,the Company,centering on Romantic Show and supplemented by Love in and Colo
115、r series,has gradually formed a content matrix in outfield performances,cooperation,customization,introduction,and procurement of shows.1.Romantic Show series Led by the chief director under the new organizational structure and creation model,the Companys art team work hard with an innovative spirit
116、.Romantic Show of Xian and Romantic Show of Huangdi have opened,and Romantic Show of Shanghai and 2020 Annual Report of Songcheng Performance Development Co.,Ltd 17 Romantic Show of Foshan are proceeding in an orderly manner.During the reporting period,Romantic Show of Xian and Romantic Show of Huan
117、gdi have opened.The Company expanded operation in northern areas,with rising market and brand value and a consolidated position as Chinas top performing arts brand and industry leader.2.Love in and Color series Currently,the Company is stepping up preparations for the Love in and Color series.The Lo
118、ve in series focuses on the original ecological folk culture to present local customs;the Color series is a boutique performing arts for tourists,which is a grand interactive show filled with fashion,culture,technology,light and shadow,dreams,surprises,suspense,and elements favored by young people.T
119、he Company has also enabled new and young director teams from the headquarters and affiliated art troupes on these shows,cultivating a younger director team.3.Indoor small and medium drama In addition to the original 5D real-life drama The Earthquake and the holographic show Phantom,the Company laun
120、ched a new parent-child show Beware-Dinosaurs!,nostalgic drama Katyusha,and walk-around performance Shangganling and Ahoy Captain Cook!during the reporting period.These new performances greatly enhanced its performing arts portfolio.4.Outdoor series In terms of outfield performance,the Company has r
121、esumed the classic traditional dramas,including the martial arts drama Yanqing on Stage Contest and the interactive drama The Case of Chen Shimei,and added trendy content like cliff concerts,forest and water concerts,and electronic music parties for tourists,providing tourists with more entertainmen
122、t options.(III)Marketing optimization During the reporting period,the Company achieved excellent results in marketing through online short videos and new media,offline field promotion and penetration into special markets.1.Online Build up new space in network communication and strengthen the diversi
123、fied development of We media and short video platforms.The Company has closely integrated brand promotion with marketing through content marketing,online gifts and coupons,and offline diversion,to maintain continuous growth of its followers and increasing their retention rate.In addition,employees w
124、ere encouraged to post contents on Tik Tok to increase exposure of various scenic spots on network communication platforms.2.Offline In recent years,consumption of young people in small towns is on the rise.In line with local conditions,the Company started first round marketing in lower-level region
125、s,especially towns contributing more customers.Flyers,wall paintings,and promotion materials were used to effectively expose the brand to potential customers.3.Activities Since resumption of business,the Company has launched different seasonal and holiday themed activities according to various festi
126、vals and timings such as surrounding tours,summer night tours,National Day,Halloween,Christmas Day and New Years Day,and Spring Festival.Different ticket prices and product combinations have been tested in the market,and subsequently,a diverse price system for the its performing arts venues has been
127、 instituted.2020 Annual Report of Songcheng Performance Development Co.,Ltd 18 (IV)Optimized organizational structure 1.Optimizing vertical management The Companys vertical management conducts all-around,refined and standardized management of performance quality,equipment uses,safety,and scenic spot
128、 operation,and has instituted a regular meeting system.The management system has been running effectively now for 3 years.With the rapid increase of projects,everything,from lighting,sound,dance,props,management,to guest reception,must have strict oversight.Standards and vertical management can redu
129、ce levels to ensure accuracy of management points.2.Optimizing creation team The continuous development of the Company and the epidemic prompted the optimization,adjustment and integration of the creation team.The original direction and creation team cultivated from actors has limitation in overall
130、quality,which affects the speed and quality of product creation.During the reporting period,the Company adjusted the original team,some were transferred to the management of the art troupe,and others remained in the creation team.At the same time,professional talents with experiences in large-scale
131、performances,and outstanding talents of Beijing Dance Academy and other colleges were absorbed.The current staff structure as a result is more diverse and efficient.3.Establishing an innovation department The Company established the Innovation Department,which is mainly responsible for creation of p
132、opular content on internet and introduction of creative devices.The department shall introduce relevant fresh information within and beyond the industry to the Company in a timely manner,and add,supplement,and improve new business patterns,experience projects,and landscape atmosphere to various scen
133、ic spots.At the same time,it will collect information for tourism and urban performance potentials.The department shall help solve the deficiencies of original internet applications and popular contents,and serve as the Companys front runner to reach leading projects.(V)Preparation of Shanghai proje
134、ct The Shanghai project is located in the citys permanent green space Expo Park near Huangpu River.It combines elements of Shanghai-style culture,old industrial base,and fashion vitality with an outstanding location,convenient transportation and good supporting facilities.In the post-epidemic era,th
135、e Shanghai government has put forward a call to build a performing arts center of Asia.Firmly grasping this opportunity,the Company will spare no effort to create a“jewel”of performing arts in Shanghai.After more than two years of construction,especially the in-depth development and model testing of
136、 the Performing Arts Kingdom since the epidemic,the Shanghai project will open with rich program content.Rooted in the magnificent history of Shanghai,the main show Romantic Show of Shanghai tells the great chapters of the city with profound culture,passion,and high-tech international stage means.Th
137、e performance is divided into chapters of The Origin of Shenhu,1921,Modern Years,Shanghai Family,and Wind from the Sea.On the stage,the audience will experience the Songze archaeological site dating back 6000 years,Sir Chunshens manor estate granted by the emperor in the Warring States Period,the gl
138、orious history of 1st National Congress of CPC,the ups and downs of the Shili Yangchang in the 1920s and 1930s,the grand atmosphere of the World Expo in the new century.On stage,the core culture of the 30-year development and opening of Pudong is proudly presented.The vivid presentation of Shanghais
139、 red culture,Shanghai-style culture,and Jiangnan culture will bring the audience a visual and spiritual feast.At the same time,the Performing Park also launched 4 special performances for different groups with different styles,including 2020 Annual Report of Songcheng Performance Development Co.,Ltd
140、 19 hundreds of actors from more than ten countries.The High Show Color centers on the performing arts complex of Songcheng in Shanghai,and sets up multiple performance spaces with different styles on each floor.Each performance space is uniquely set up with an independent plot in movie-level scenes
141、,which highly restores the real texture under different themes.Walking in the performance space of Color,the audience will encounter different characters and trigger different stories at every corner.As a high-tech stage production,the parent-child show Beware-Dinosaurs!is a collision of art and sci
142、ence filled with knowledge.The large-scale dinner show Samba Passion brings together top dancers from Argentina,Cuba,Russia,and Ukraine,presenting the purest South American flavor and beat to the audience.The brilliant show S will bring an electric spark to all.This venue is a brand new performance
143、park designed to shock your imagination.Battle of Shanghai,The Earthquake,Ghost Ship,Liaozhai Ghost House,Storm Eye,naked-eye 3D and other large-scale interactive experience projects will impress every tourist.It is like a world away while walking on Crossing Street,Magic Street,Market in Heaven,and
144、 Romantic Street;every stop is a scene in the music square.There will also be“the colorful forest”,the“fairy valley”,the“sky city”,the glass platform and the rattan bridge as splendid shows are staged every day at more than 20 theaters and performance venues,including the standard theater,the bird s
145、how theater,the forest theater,and the cliff theater.As an open art district,Songcheng Downtown has multiple variable spaces and a performance square that can accommodate tens of thousands of people,which is a comprehensive art performance platform.The performance park welcomes people of all ages wi
146、th daily shows and trendy activities each week.Through customized hardware,diversified content creation and a circle-based pricing system,the Shanghai project will cover the overall population and with precise penetration.With rich contents and different customer groups,the Shanghai project will hav
147、e a diversified ticket pricing system,including single tickets,a package ticket of Romantic Show,combined tickets,discounted group tickets,childrens tickets,and night party tickets.(VI)Live broadcast platform In recent years,the internet performance/digital entertainment industry has entered a stage
148、 of steady development with intensified competition.The PC market continues to be eroded by the mobile market.During the reporting period,people stayed more at home due to the epidemic.As a result,they spent more time on internet,bringing a new wave of benefits to digital entertainment platforms;liv
149、e broadcast technology empowered offline industries,live education,live consultation,and Cloud Concerts,Cloud Wedding and Cloud Recruitment have emerged.These have integrated into all aspects of peoples daily life.In the current market environment,the digital entertainment industry faces both opport
150、unities and challenges.During the reporting period,the overall business of Huafang Technology developed well,with increasing paying users,consumption users,operating income and operating profit.In terms of segments,the performance of Six Rooms has shown fluctuation as it has entered the stage of bus
151、iness optimization and operation improvement;while Huajiao Live has shown a growth trend with a leading position in the industry in terms of user usage time and penetration among active users.(VII)Other In 2020,the global outbreak of COVID-19 brought the cultural travel industry almost to a halt.Dur
152、ing this period,the Company did not stop in strategic development thinking and new project expansion,and conducted a comprehensive evaluation of existing projects and businesses.Given that the main business of Zhejiang Songcheng Longquanshan Tourism Development Co.,Ltd.is different from the Companys
153、 future strategic development plan,the Company signed a contract with Longquan Tourism Investment Development Co.,Ltd.under the Peoples Government of Longquan,Zhejiang Province in April 2021 to transfer all the equity of Zhejiang Songcheng Longquanshan Tourism Development Co.,Ltd.at a total consider
154、ation of 276 million yuan.The implementation of this equity transfer is conducive to a stable operation transfer of Longquanshan project,and also helps the Company optimize capital,resource allocation and asset structure,and improve asset operation efficiency to focus on its main business.2020 Annua
155、l Report of Songcheng Performance Development Co.,Ltd 20 II.Main Business Analysis 1.Overview See I.Overview in Discussion and Analysis on Business Circumstance.2.Income and Costs(1)Operating income structure Overall operating income Unit:RMB 2020 2019 Year-on-year increase or decrease Amount Propor
156、tion in Operating Revenue Amount Proportion in Operating Revenue Total Revenue 902,586,125.63 100%2,611,753,208.86 100%-65.44%By Industry I.Culture and Art Industry-Live Performance 675,872,865.35 74.88%1,871,167,934.09 71.64%-63.88%II.Culture and Art Industry-Performance on Internet 383,412,284.25
157、14.68%-100.00%III.Tourism Service Industry 226,713,260.28 25.12%357,172,990.52 13.68%-36.53%By Product 1.Songcheng in Hangzhou 286,877,405.89 31.78%918,884,614.29 35.18%-68.78%2.Songcheng in Sanya 127,098,246.23 14.08%392,729,155.06 15.04%-67.64%3.Songcheng in Lijiang 136,520,949.23 15.13%333,433,83
158、2.57 12.77%-59.06%4.Songcheng in Jiuzhai 25,667,095.21 2.84%5.Songcheng in Guilin 56,586,027.07 6.27%160,649,726.51 6.15%-64.78%6.Songcheng in Zhangjiajie 18,120,963.58 2.01%65,470,605.66 2.51%-72.32%7.Songcheng in 25,002,178.14 2.77%2020 Annual Report of Songcheng Performance Development Co.,Ltd 21
159、 2020 2019 Year-on-year increase or decrease Amount Proportion in Operating Revenue Amount Proportion in Operating Revenue Xian 8.Digital entertainment platform 383,412,284.25 14.68%-100.00%9.E-commerce service charge 43,316,562.23 4.80%180,426,687.71 6.91%-75.99%10.Design and planning fees 183,396,
160、698.05 20.32%173,281,416.46 6.63%5.84%11.Supporting facilities and transportation services for scenic spots 3,464,886.35 0.13%-100.00%By Region 1.Zhejiang Province 513,590,666.17 56.90%1,276,057,604.81 48.86%-59.75%2.Sanya,Hainan Province 127,098,246.23 14.08%392,729,155.06 15.04%-67.64%3.Lijiang,Yu
161、nnan Province 136,520,949.23 15.13%333,433,832.57 12.77%-59.06%4.Sichuan Province 25,667,095.21 2.84%5.Beijing 383,412,284.25 14.68%-100.00%6.Guilin,Guangxi Province 56,586,027.07 6.27%160,649,726.51 6.15%-64.78%7.Zhangjiajie,Hunan Province 18,120,963.58 2.01%65,470,605.66 2.50%-72.32%8.Xian,Shaanxi
162、 Province 25,002,178.14 2.77%(2)Industry,product,or region accounting for more than 10%of the companys operating revenue or profit Applicable Not applicable Unit:RMB 2020 Annual Report of Songcheng Performance Development Co.,Ltd 22 Operating income Operating Cost Gross margin Increase or decrease o
163、f operating income compared with the same period of last year Increase and decrease of operating cost over the same period of last year Increase or decrease of gross profit compared with the same period of last year By Industry I.Culture and Art Industry-Live Performance 675,872,865.35 341,549,955.6
164、8 49.47%-63.88%-28.09%-25.15%II.Tourism Service Industry 226,713,260.28 11,120,517.74 95.09%-36.53%-89.09%23.64%By Product 1.Songcheng in Hangzhou 286,877,405.89 186,752,833.49 34.90%-68.78%-35.30%-33.69%2.Songcheng in Sanya 127,098,246.23 29,293,691.27 76.95%-67.64%-50.29%-8.04%3.Songcheng in Lijia
165、ng 136,520,949.23 34,341,329.43 74.85%-59.06%-42.14%-7.35%4.Design and planning fees 183,396,698.05 8,113,082.55 95.58%5.84%100.08%-2.08%By Region 1.Zhejiang Province 513,590,666.17 197,873,351.23 61.47%-59.75%-49.34%-7.92%2.Sanya,Hainan Province 127,098,246.23 29,293,691.27 76.95%-67.64%-50.29%-8.0
166、4%3.Lijiang,Yunnan Province 136,520,949.23 34,341,329.43 74.85%-59.06%-42.14%-7.35%When the statistical caliber of the companys main business data is adjusted in the reporting period,the companys main business data should be subject to the one after the statistical caliber at the end of the reportin
167、g period is adjusted in the most recent year.Applicable Not applicable (3)Is the companys physical sales income greater than the labor income?Yes No (4)Performance of major sales contracts signed by the Company as of the reporting period Applicable Not applicable 2020 Annual Report of Songcheng Perf
168、ormance Development Co.,Ltd 23(5)Operating Cost Structure Industry Classification Unit:RMB Industry Classification Item 2020 2019 Year-on-year increase or decrease Amount Proportion to Operating Cost Amount Proportion to Operating Cost I.Culture and Art Industry-Live Performance Cost of live perform
169、ance 341,549,955.68 96.85%474,975,419.72 63.57%-28.09%II.Culture and Art Industry-Performance on Internet Performance cost on internet 170,265,034.42 22.79%-100.00%III.Tourism Service Industry Cost of tourism service industry 11,120,517.74 3.15%101,948,847.10 13.64%-89.09%Note N/A(6)Has the scope of
170、 consolidation changed during the reporting period?Yes No There are 5 newly merged units in this period,the reasons are:New Merged Units This Year Investment Ratio Notes Zhuhai Songcheng Performance Kingdom Co.,Ltd 100%New in 2020 Zhuhai Southern Film and Television Cultural Industry Co.,Ltd.100%Acq
171、uire 100%equity in 2020 Zhuhai Huayin Landscaping Co.,Ltd.55%55%holding subsidiary affiliated Zhuhai Southern Film and Television Cultural Industry Co.,Ltd.acquired in 2020 Songcheng Brand Management Co.,Ltd.100%New in 2020 Romance Show Management Co.,Ltd.100%New in 2020 In the current period,the nu
172、mber of merged units was reduced by 2 due to:Reduced Merged Units This Year Investment Ratio Notes Hangzhou Songcheng Art Troupe Co.,Ltd.100%Canceled in 2020 Zhejiang Songcheng Entertainment Culture Co.,Ltd.100%Canceled in 2020 2020 Annual Report of Songcheng Performance Development Co.,Ltd 24(7)Maj
173、or changes or adjustments to the companys business,products,or services during the reporting period Applicable Not applicable (8)Major Clients and Suppliers The Companys Major Clients Total sales amount of the top five customers 295,250,820.97 Proportion of the total sales amount of the top five cus
174、tomers to the total annual sales 32.71%Proportion of the total sales amount of the related parties in the top five customers to the total annual sales 0.00%Profiles of the Companys top five customers No.Name of customer Sales amount(yuan)Proportion to the annual sales 1 Customer I 128,933,962.27 14.
175、28%2 Customer II 50,414,308.38 5.59%3 Customer III 39,108,962.22 4.33%4 Customer IV 38,845,104.50 4.31%5 Customer V 37,948,483.60 4.20%Total-295,250,820.97 32.71%Other Information Notes for Major Clients Applicable Not applicable (8)Major suppliers Total Purchase Amount of Top Five Suppliers(yuan)39
176、7,247,387.85 Proportion of the total purchase amount of top five suppliers to the total annual purchase amount 34.73%Proportion of the total purchase amount of the related parties in top five suppliers to the total annual purchase amount 0.00%Profiles of the Companys top five suppliers No.Supplier N
177、ame Purchase amount(yuan)Proportion to the total annual purchase amount 1 Supplier I 147,103,879.82 12.86%2 Supplier II 106,202,799.73 9.28%3 Supplier III 57,800,000.00 5.05%4 Supplier IV 49,683,318.00 4.34%5 Supplier V 36,457,390.30 3.19%2020 Annual Report of Songcheng Performance Development Co.,L
178、td 25 Total-397,247,387.85 34.73%Other Information Notes for Major Suppliers Applicable Not applicable 3.Expenses Unit:RMB 2020 2019 Year-on-year increase or decrease Statement on Significant Changes Sales Expenses 63,649,750.30 145,503,636.64-56.26%Mainly due to the impact of the epidemic and Huafa
179、ng Technology is no longer included in the scope of consolidation Administration expenses 288,084,167.74 188,215,121.23 53.06%Mainly due to the closure of various scenic spots of the Company during the epidemic,and the adjustment of operating costs during the closed period to this item Financial Exp
180、enses-12,843,438.15-17,743,898.84 27.62%Mainly due to the increase in bank loan interest and exchange gains and losses Research and development expense 37,487,964.00 48,424,520.54-22.58%Mainly due to the fact that Huafang Technology is no longer included in the scope of consolidation 4.R&D Investmen
181、t Applicable Not applicable During the reporting period,the Company invested RMB 37,488,000 in research and development,mainly input in new technologies to improve the stage effect,the background control system,the production of VR content,and upgrade of the ticketing system.In the light of consiste
182、ncy and prudence,the Companys R&D investment is fully included in the current profit and loss without capitalization.The Companys R&D investment in the past three years and its percentage in operating income 2020 2019 2018 Number of R&D personnel 253 252 326 Percentage of R&D personnel 17.56%17.37%1
183、9.09%R&D investment(yuan)37,487,964.00 48,424,520.54 70,567,576.48 The proportion of R&D investment to operating income 4.15%1.85%2.20%2020 Annual Report of Songcheng Performance Development Co.,Ltd 26 Capitalized amount of R&D expenditure(yuan)0.00 0.00 0.00 Percentage of capitalized R&D expenditur
184、e in R&D investment 0.00%0.00%0.00%Percentage of capitalized R&D expenditure in current net profit 0.00%0.00%0.00%The reason for the significant change in the proportion of the total amount of R&D investment to operating income compared with last year Applicable Not applicable Reasons and rational e
185、xplanations on the substantial change in capitalization rate of R&D investment Applicable Not applicable 5.Cash Flow Unit:RMB Item 2020 2019 Year-on-year increase or decrease Subtotal of cash inflow from operational activities 943,790,117.88 3,146,681,409.32-70.01%Subtotal of cash outflow from opera
186、tional activities 549,848,217.94 1,575,229,909.81-65.09%Net cash flow generated by operating activities 393,941,899.94 1,571,451,499.51-74.93%Subtotal of cash inflow from investment activities 1,351,939,517.27 1,939,481,747.40-30.29%Subtotal of Cash Outflow from Investment Activities 2,292,941,086.1
187、0 3,120,852,903.60-26.53%Net amount of cash flow generated by investment activities-941,001,568.83-1,181,371,156.20 20.35%Subtotal of cash inflow from financing activities 420,000,000.00 13,500,000.00 3,011.11%Subtotal of cash outflow from financing activities 306,917,837.81 174,312,936.00 76.07%Net
188、 cash flow generated by financing activities 113,082,162.19-160,812,936.00 170.32%Net additions to balance of equivalents-443,933,773.37 231,761,674.88-291.55%Description of the main factors affecting the significant changes in related data over the same period of last year 2020 Annual Report of Son
189、gcheng Performance Development Co.,Ltd 27 Applicable Not applicable During the reporting period,the subtotals of cash inflows and outflows from operating activities,and the net cash flows from operating activities decreased by 70.01%,65.09%,and 74.93%respectively year-on-year,mainly due to the impac
190、t of the epidemic and the fact that Huafang Technology is no longer incorporated into the scope of the Companys consolidation.During the reporting period,the subtotals of cash inflow and outflow from investment activities decreased by 30.29%and 26.53%respectively year-on-year,mainly due to the year-
191、on-year decrease in the Companys purchase and redemption of financial products.During the reporting period,the subtotal of cash inflow from financing activities increased by 3011.11%year-on-year,mainly due to the increase in the Companys bank loans and the receipt of capital contributions from share
192、holders by Xian Romance Show Company.During the reporting period,the subtotal of cash outflows from financing activities increased by 76.07%year-on-year,mainly due to the year-on-year increase in the Companys repayment of bank loans and dividend distribution.Reasons for the significant difference be
193、tween the net cash flow generated by the companys operating activities in the reporting period and the net profit in the current year Applicable Not applicable Supplementary information Amount of this period 1.Reconciliation of net profit to cash flows from operational activities:Net Profit-1,766,94
194、5,878.00 Plus:Credit impairment loss 32,739,976.91 Provision for Impairment of Assets 1,877,720,155.72 Depreciation of fixed assets 201,385,250.67 Amortization of Intangible Assets 56,669,812.67 Amortization of long-term prepaid expenses 35,034,022.89 Losses on disposal of fixed assets,intangible as
195、sets and other long-term assets(mark-for incomes)-676,435.92 Losses on scrapping of fixed assets(mark-for incomes)38,302,318.05 Losses on fair value changes(mark-for incomes)-247,726.31 Financial expenses(mark-for incomes)17,775,739.48 Losses on investment(mark-for incomes)-14,014,892.30 Decrease on
196、 deferred income tax assets(mark-for increases)-9,318,905.44 Increase on deferred income tax liabilities(mark-for decreases)-3,137,428.24 Decrease on inventories(mark-for increases)-1,993,817.28 Decrease on operational receivables(mark-for increases)-44,275,900.28 Increase on operational payables(ma
197、rk-for decreases)-25,074,392.68 Others Net cash flow generated by operating activities 393,941,899.94 2020 Annual Report of Songcheng Performance Development Co.,Ltd 28 III.Non-Core Business Applicable Not applicable Unit:RMB Amount Percentage of Total Profit Reason Sustainability Investment Income
198、14,014,892.30-0.81%Mainly due to long-term equity investment and financial income calculated by the equity method Yes Changes in fair value gains and losses 247,726.31-0.01%No Asset Impairment-1,910,460,132.63 109.98%Mainly due to the impairment of the long-term equity investment of Huafang Technolo
199、gy held by the Company No Non-operating Revenue 3,242,377.14-0.19%No Non-Operating Expenses 41,007,879.43-2.36%Mainly due to the Companys scenic upgrades and renovations No IV.Analysis of Assets and Liabilities 1.Significant changes in assets composition Since 2020,the Company implemented new revenu
200、e standards and new leasing standards for the first time,and adjusted the items related to financial statements at the beginning of the year.Applicable Unit:RMB End of 2020 Early 2020 Proportion increase and decrease Statement on Significant Changes Amount Proportion To Total Assets Amount Proportio
201、n To Total Assets Cash and Bank Balances 1,337,776,253.98 14.55%1,785,124,821.87 16.17%-1.62%Accounts receivable 5,887,012.36 0.06%5,337,855.43 0.05%0.01%Inventory 13,424,146.50 0.15%6,110,221.56 0.06%0.09%2020 Annual Report of Songcheng Performance Development Co.,Ltd 29 Long-term Equity Investment
202、 1,534,539,625.11 16.69%3,468,596,165.08 31.42%-14.73%Mainly due to the impairment of the long-term equity investment of Huafang Technology held by the Company Fixed Assets 2,508,754,929.16 27.28%2,311,251,277.89 20.93%6.35%Mainly due to the transfer of the Companys project in construction into fixe
203、d assets Projects under Construction 771,871,563.73 8.39%370,000,233.10 3.35%5.04%Mainly due to increased input in the Companys projects in construction Long-term loan 282,000,000.00 3.07%0.00%3.07%Mainly due to increase in the Companys bank loans 2.Assets and liabilities measured at fair value Appl
204、icable Not applicable Unit:RMB Item At the beginning of the reporting period Changes in fair value gains and losses in the current period Cumulative fair value changes in equity Impairment loss of the reporting period Purchase amount of the reporting period Sales amount of the reporting period Other
205、 variations At the end of the reporting period Financial Assets 1.Trading financial assets(excluding derivative financial assets)854,108,086.54-4,999,569.16 814,776,184.30 1,354,628,734.60 19,371,860.52 328,627,827.60 2.Derivative financial assets 6,589,730.08 6,589,730.08 3.Other credit investments
206、 4.Investment in other 300,959,931.64 -76,693,334.90 224,266,596.74 2020 Annual Report of Songcheng Performance Development Co.,Ltd 30 equity instruments Subtotal of financial assets 1,155,068,018.18 1,590,160.92-76,693,334.90 814,776,184.30 1,354,628,734.60 19,371,860.52 559,484,154.42 Total 1,155,
207、068,018.18 1,590,160.92-76,693,334.90 814,776,184.30 1,354,628,734.60 19,371,860.52 559,484,154.42 Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 Note:Changes in fair value recognized in profit or loss for the current period are 1,590,160.92 yuan,which is composed of changes in fair value recog
208、nized in profit or loss of 247,726.31 yuan and converted difference in foreign currency statements of 1,342,434.61 yuan;Other changes are accumulated investment income.Are there any significant changes in the measurement attributes of the companys main assets during the reporting period?Yes No 3.Res
209、trictions on asset rights as of the end of the reporting period As of the end of the reporting period,the Companys main assets were not seized,frozen,mortgaged or pledged.V.Investment analysis 1.Overview Applicable Not applicable Investment In The Reporting Period(RMB)Investment Over The Correspondi
210、ng Period Of Last Year Rate Of Change 2,159,030,550.7 2,680,647,888.78-19.46%2.Significant equity investments acquired during the reporting period Applicable Not applicable Unit:RMB Invested Company Name Main businesses Investment Mode Investment Amount Shareholding Percentage Capital Source Partner
211、 Investment Period Product type Progress as of Balance Sheet Date Anticipated Income Current Investment Profit and Loss Involved in a Lawsuit Disclosing Date(If Any)Disclosing Index(If Any)Zhuhai Southern Film and Television Cultural Industry Co.,Ltd.Project development,operation and management of f
212、ilm and television industry;Acquisition 378,000,000.00 100.00%Equity Fund N/A Long-term Film and television culture Completed 0.00-16,469,469.80 No 2020 Annual Report of Songcheng Performance Development Co.,Ltd 31 Invested Company Name Main businesses Investment Mode Investment Amount Shareholding
213、Percentage Capital Source Partner Investment Period Product type Progress as of Balance Sheet Date Anticipated Income Current Investment Profit and Loss Involved in a Lawsuit Disclosing Date(If Any)Disclosing Index(If Any)development,operation and management of tourism projects;real estate developme
214、nt;business services and commercial wholesale and retail Total-378,000,000.00-0.00-16,469,469.80-3.Major non-equity investments underway during the reporting period Applicable Not applicable 4.Financial assets at fair value Applicable Not applicable Unit:RMB Asset Class Initial Investment Cost Chang
215、es in fair value gains and losses in the current period Cumulative fair value changes in equity Amount purchased during the reporting period Amount sold during the reporting period Cumulative investment income Amount at the end of the period Capital Source Fund 110,024,148.79-538,080.75 103,776,184.
216、30 40,362,625.24-454,248.84 172,445,378.26 Temporarily idle own funds Financial Derivatives 6,589,730.08 6,589,730.08 Temporarily idle own funds Other(Bank Financial Products)744,083,937.75-4,461,488.41 711,000,000.00 1,314,266,109.36 19,826,109.36 156,182,449.34 Temporarily idle own funds Total 854
217、,108,086.54 1,590,160.92 0.00 814,776,184.30 1,354,628,734.60 19,371,860.52 335,217,557.68-Note:The current fair value change in profit and loss in the table is 1,590,160.92 yuan,which is composed of the fair value change in profit and loss of 247,726.31 yuan and the converted difference in foreign
218、currency statements of 1,342,434.61 yuan.2020 Annual Report of Songcheng Performance Development Co.,Ltd 32 5.Utilization of raised funds Applicable Not applicable No use of funds in the reporting period of the Company VI.Major Assets and Equity Sales 1.Major assets sales Applicable Not applicable N
219、o major assets sales in the reporting period of the Company 2.Major equity sales Applicable Not applicable VII.Analysis of Major Subsidiaries and Investees Applicable Not applicable Major subsidiaries and joint-stock companies with a net profit impact of over 10%.Unit:RMB Company Name Company Type M
220、ain businesses Registered Capital Total Assets Net Assets Operating income Operating Profit Net Profit Sanya Romance Tourism Performance Co.,Ltd.Subsidiary Company Theme park+Art performance 490,000,000.00 934,587,240.66 898,931,442.88 127,098,246.23 79,054,679.57 69,002,874.47 Lijiang Chama Ancient
221、 City Tourism Development Co.,Ltd.Subsidiary Company Theme park+Art performance 250,000,000.00 606,265,695.91 579,980,699.81 136,520,949.23 74,962,536.68 62,836,710.80 Songcheng Tourism Development Co.,Ltd.Subsidiary Company Tourism resource development,tourism planning and design,artistic creation,
222、brand and marketing planning of tourist attractions 50,000,000.00 709,296,365.59 416,014,324.88 168,821,226.38 163,040,087.48 162,911,596.90 Beijing Huafang Technology Co.,Ltd.(formerly known as Beijing Joint stock company Internet information service,performance brokerage business,53,333,333.00 1,8
223、82,542,983.27 1,503,710,234.65 3,777,442,691.41 9,844,199.94-10,799,124.63 2020 Annual Report of Songcheng Performance Development Co.,Ltd 33 Six Rooms Technology Co.,Ltd.)business on music entertainment products through information network,competition activities Major holding companies and joint st
224、ock companies;1.The report data of Beijing Huafang Technology Co.,Ltd.(formerly known as Beijing Six Rooms Technology Co.,Ltd.)is presented on the basis of the fair value of the investees identifiable assets and liabilities when the investment is obtained.2.This year,the Company made 1,861,297,284.9
225、0 yuan of impairment provision for the long-term equity investment in Beijing Huafang Technology Co.,Ltd.Acquisition and disposal of subsidiaries during the reporting period Applicable Not applicable Company Name Method of acquisition and disposal of subsidiaries during the reporting period Impact o
226、n overall production management and performance Zhuhai Songcheng Performance Kingdom Co.,Ltd New in 2020 Zhuhai Southern Film and Television Cultural Industry Co.,Ltd.Acquire 100%equity in 2020 Zhuhai Huayin Landscaping Co.,Ltd.A 55%holding subsidiary of Zhuhai Southern Film and Television Culture I
227、ndustry Co.,Ltd.acquired in 2020 Songcheng Brand Management Co.,Ltd.New in 2020 Romance Show Management Co.,Ltd.New in 2020 Hangzhou Songcheng Art Troupe Co.,Ltd.Canceled in 2020 Zhejiang Songcheng Entertainment Culture Co.,Ltd.Canceled in 2020 VIII.The structured entity controlled by the Company Ap
228、plicable Not applicable IX.Prospects for the Future Development of the Company At the beginning of 2020,the COVID-19 pandemic swept across the world,taking a considerable toll on the social order and economic operation of all the countries,especially the entertainment and service industries.As a pio
229、neer in the nations cultural and tourism industry,the Company closed all the scenic spots since January 24 under the call the CPC and government.Until the full resumption on June 12,financial impact is inevitable due to business suspension and recovering of the industry chain.After 20 years of devel
230、opment,the Company has experienced difficult times such as the Southeast Asian financial crisis,SARS,and the 2008 financial crisis.The history shows that every crisis is a rare development opportunity,especially for companies that are 2020 Annual Report of Songcheng Performance Development Co.,Ltd 3
231、4 prepared.After this epidemic,competitors with weak financial strength will fail,those lacking creative ability will lose more shares,and new comers will become more cautious.As a subsequent result,the competition pattern in the industry will be more favorable to the Company.As the downward trends
232、of the cultural and travel industry slid as a result of the epidemic,the Company is more aware of its own position and weak links in the industry.During the epidemic,the Company upgraded hardware against the difficult time,tried the performing arts kingdom model,and achieved initial results.In the f
233、uture,the Company will unswervingly transform and upgrade itself to a performance platform company,and think from the perspective of social communication,internet,and users.Connecting upstream and downstream sectors,it will build a new value ecology and industry order,and absorb more diversified pro
234、fessional talents.Meanwhile,a variety of economic components will be developed to constantly activate the creativity and vitality of the Company,making it a more vibrant and imaginative company.(I)Overview of industry background In 2020,the entire cultural and tourism industry was hit hard by the CO
235、VID-19 epidemic,and many were pushed on the verge of bankruptcy.According to the National Bureau of Statistics,there were 2.88 billion domestic tourists in 2020,a decrease of 52.1%from the previous year.Domestic tourism revenue was 2,228.6 billion yuan,down by 61.1%.The Blue Book of Chinese Tourism
236、Economics(NO.13),issued by the China Tourism Academy(Data Center of the Ministry of Culture and Tourism),estimated that the number of domestic tourists in 2021 will recover to 68.3%of 2019 and the revenue of domestic tourism will recover to 57.6%of 2019.As the epidemic is gradually under control wit
237、h expanding vaccination,the cultural and tourism industry is slowly recovering,and market data is increasing,especially that on domestic tourism.Being the epidemic is still prevalent in other countries,outbound travel will continue to be restricted.It is expected that the internal circulation of tou
238、rism and the return of tourism consumption will continue to be the main trend of the industry in the future.In the post-epidemic era,demand-side trends of the industry are as follows:1.Rising consumption of Generation Z Generation Z refers to the indigenous people of internet born between 1995 and 2
239、009.They grew up with computers,smartphones,and instant messaging software,carrying features of circle cultures,ACG,and niche preference.According to the National Bureau of Statistics,the total population of Generation Z in the Chinese mainland is about 260 million,accounting for about 20%of the tot
240、al population.The generation is the main group of consumption upgrades with frequent consumption in tourism.According to the survey data of Mafengwo,45.3%of Generation Z people travel 2-3 times a year,and 12.4%travel more than 4 times.The proportions are much higher than those of other age groups,an
241、d nearly half of the respondents said that the epidemic has a small impact on tourism consumption and will maintain their previous level of consumption in tourism after the epidemic.The rise of Generation Z is an iterative update of new consumer demand and group culture,and it also brings new econom
242、ic trends.In 2021,for the cultural and tourism industry hit by the COVID-19,seizing Generation Z is to grasp the incremental market for new cultural and tourism consumption in the post-epidemic era.The ability to accurately capture the travel consumption preferences of Generation Z is the key to suc
243、cess.2.Rising popularity of surrounding travel Long-distance travel is relatively restricted during the recovery period of the epidemic,the popularity of travel around the cities will continue to increase and exist for a long time.Overlapped with the demand back from outbound travel,the surrounding
244、tourism markets of the Yangtze River Delta,Pearl River Delta,Beijing-Tianjin-Hebei and other core tourist source areas are expanding significantly.According to the research report of the China Tourism Academy,in the post-epidemic era,tourists of various 2020 Annual Report of Songcheng Performance De
245、velopment Co.,Ltd 35 scenic spots mainly come from within the province.Urban one-day trips and suburban tours have recovered and the proportion of self-driving trips has increased.Self-guided family tours have become the main market contributor.The in-depth exploration and repeated consumption of th
246、e population in the core cities around the scenic spot will become one of the important tasks of the market.3.Tourism consumption from lower-level regions According to data from the National Bureau of Statistics,in recent years,the growth rate of per capita consumption expenditure in rural areas was
247、 higher than that of urban residents,indicating that rural residents also begun to have more potential for consumption.The growth rate of domestic tourist arrivals and consumption of rural residents has shown an upward trend in recent years,while that of urban residents has declined.The decline of d
248、omestic cultural and tourism consumption to third-tier and fourth-tier cities and towns is also related to the more balanced development of the economic level,which will become a long-term trend.The Companys performing arts kingdom model caters to the current consumption needs of Generation Z from t
249、he content side;special events such as summer night tours to meet the surrounding tourism market;the high,medium and low product system to cope with cultural and tourism consumption from lower-level regions,and the work done during the reporting period closely focused on the current changes in marke
250、t trends.(II)Development strategy planning of the Company After more than 20 years of development,the Company has established a relatively large competitive advantage in scale,market,marketing,technology,brand and industry status.In the future,tourism and cultural industries will face unprecedented
251、development opportunities in consumption upgrades.To meet market challenges and seize industry development opportunities,the Company will adhere to the differentiated and centralized development strategy,give full play to its creative and innovative capabilities,strengthen development and applicatio
252、n of new technologies,continue to make breakthroughs in innovative business forms,and maintain integrated development.While consolidating its foundation in the performing arts,the Company will seek another leapfrog development to bring its value to a new level.1.Adhere to differentiation and central
253、ized development The Company will adhere to the differentiated competition strategy,uphold the banner of performing arts,and strengthen the development mode of theme park+cultural performance,to avoid homogenous competition with other types of theme parks;value application of technological innovatio
254、n to cater to the needs of young people;give full play to creativity to increase attraction and improve experiences of performance content.It will remain committed to the strategy of centralized development,and focus on the layout in first-line tourism destinations and live entertainment fields rela
255、ted to performing arts;remian within its ability circle to avoid excessive development,and stay cautious in diversification.2.Attention to creativity and innovation Innovation is the lifeblood of the Company and only internal creativity can build a century-old Songcheng.The Company,based on market d
256、irection,will adhere to performing arts as the core,and focus on experience.Starting from planning,it will continue to strengthen the core competitiveness of performance,and integrate innovation into planning and design,interactive experience,theater matrix,performance content and market planning.3.
257、Drive innovation in live performance with technology Technological innovation is a powerful tool to promote the transformation and by upgrading the cultural industry and achieve 2020 Annual Report of Songcheng Performance Development Co.,Ltd 36 high-quality development.Technology is playing an incre
258、asingly important role in performance effects and the audience experience.The combination of cutting-edge stage machinery,lighting,sound,and smart equipment will realize the coexistence of the real and virtual worlds on the same stage/scene,and enhance visitors/audiences experience of the real world
259、 while bringing them unperceivable feelings.In addition,live entertainment with a strong sense of immersion will innovate the overall entertainment experience.4.Breakthroughs in business forms The Company has become an industry leader in tourism and performing arts.That is not enough,it is actively
260、exploring innovative models,thereby enhancing social contributions.Tourism performance+urban performance is advancing,and the construction of a performing arts kingdom will make it to penetrate from mass tourism to segmented population markets.The Company will constantly challenge itself to seek a b
261、roader market scale and greater development segment.In the construction of the Shanghai project,multiple shows and diversified ticket combinations will be introduced based on the Romantic Show,extending its services to tourist groups,locals and those from close regional markets.5.Committed to integr
262、ated development The current corporate governance has created greater possibilities for the Companys resource integration and group operations.Integrated development is a powerful weapon to improve combat capabilities and achieve strategic goals.In the future,the Company will be committed to integra
263、tion of tourism and cultures,cultures and technology,independent investment and light assets,entertainment and vacation,marketing and planning,products and markets,contents and platforms,consumers and producers,theme scenic spots and performing arts kingdom,as well as internet and the capital market
264、.6.Platform-based strategy for performance The epidemic has resulted in negative impact to the industrial chain and structure,but also gave birth to new opportunities.The Company is considering to become a platform for industry accumulation,to gather the industrial chain shattered by the epidemic an
265、d that squeezed out by urbanization on the Companys platform.That includes,for example,professional equipment,various studios,performing talents and drama platforms,performance management and output,ticketing and international art exchange platform.The Company will be built into a platform for socia
266、l communication of young people,family gatherings,the elderly,and relaxing for business people.It is also a communication platform for various artists and art categories.(III)Work plan in 2021 Since the outbreak of the epidemic,the Company has focused on recovery strategy and economy.After years of
267、development,the Company has formed strong capital strength and brand influence,rich intellectual resources and significant competitive advantages.It has stronger anti-risk capabilities and a better development foundation than ever before.Through systematic review,consideration and preparation,the Co
268、mpany is full of confidence and enthusiasm,and is ready for the market repair and further development after the epidemic is over.1.Development of Shanghai project 2021 is the first year of the nations 14th Five-Year Plan and also the 25th anniversary of the establishment of Songcheng Group,an import
269、ant milestone for the Companys development.The Shanghai project is a key node to link the past and present.,and is also an important stage for Songcheng to further consolidate and establish its top position in performance in the world.The Company will be more tolerant and open while leveraging its c
270、losed-loop advantages.Songcheng in Shanghai will become a rich platform for exchanges of various art forms and a platform for live entertainment.In the future,the Shanghai project,with its location advantages,will carry out various activities like performances,festivals,exhibitions,and IP exhibition
271、s through self-made shows,customization,introduction,cooperation,and sharing.It will continuously expand circles and influence,and complete the 2020 Annual Report of Songcheng Performance Development Co.,Ltd 37 three-dimensional concept of the performance kingdom,while laying a solid foundation for
272、its replication.2.Upgrade of existing projects The continuous improvement of existing projects is conducive to better product quality and user experience.The Company will continue to renovate and upgrade existing projects by expanding and renewing travel routes,adding various types of indoor and out
273、door theaters and shows,and adding popular sites and rest areas.The new changes will increase return visitor attendance potential.3.Establish a hierarchical system for high-end,medium-end and low-end products For the core projects of Romantic show,some adjustments were made to the Romantic Show in S
274、anya,Xian and other places to extract in-depth new cultural elements,and integrate more stage expressions;the introduction of Love in and Color,different from the Romantic Show series,presents culture in a newer and purer form;the existing outfield performances were also improved,and the features of
275、 the scenic spot were fully used to make a point-line-field presentation layout of outfield performances,namely a system in which tourists can watch the shows and participate in immersive interactions.The differentiation in the market will not only deepen the type and quality of Songchengs performan
276、ce product line,but also further consolidate its the core position in the local tourism and performance market.4.Promotion of projects in Foshan,Xitang and Zhuhai The projects in Foshan and Xitang are the continuation of the Romantic Show product line in the Yangtze River Delta and the Pearl River D
277、elta.The Company will ensure the steady progress of various projects and accelerate the construction.As a flagship product in the future,the Zhuhai project has generated high expectations for the Company,and it will invest accordingly to the planning and design,engineering construction,and artistic
278、creation to ensure that the Zhuhai project will become a world-class entertainment destination for performing arts.5.Continue to strengthen marketing The Company will penetrate into low-level regions to consider local cultural and market features,and establish a differentiated market mechanism accor
279、ding to different tourist destinations;strengthen overall layout of channels in each scenic spot market based on the introduction of visitor flow,and build an intensive marketing network through online and offline marketing channels in combination with point,line and field;Combine reshaping of the b
280、rand,event marketing and precise placement,to make a good job in the promotion and comprehensive marketing of each project;innovate the promotion mode and find suitable partners and internet celebrities,strengthen the use of short videos and We media,and activate the promotion of young people on We
281、media.6.Improve mechanism and talent structure The Company will focus on three key points in building a talent system in 2021:(1)Introduction:Fully research the talents required by the post,and identify the features of talents required by different posts.Introduce high-level talents and establishmen
282、t a talent pool of Songcheng through external introduction and internal exploration;expand contacts for professional posts to provide talent support for the Companys innovation strategy.(2)Use of talents:Today,realizing self-value has become the demand of most young employees.Based on this,the Compa
283、ny will combine the situation of talents and posts to set up jobs that meet employees ability development and expectations,and enable them to achieve self-satisfaction and self-realization while gaining sufficient growth.In addition,a variety of incentive channels such as joint systems and performan
284、ce,as well as warm and effective communication will bind talents to promote their sustainable development.(3)Cultivation:Build a stage for outstanding talents to display their skills and expand their horizons,help them go beyond 2020 Annual Report of Songcheng Performance Development Co.,Ltd 38 limi
285、tations of the original work and give full play to their ability.The Company will implement a training plan for Songchengs high-potential talents,integrate and upgrade the existing talent training system,putting talent and the Company on the same page in transformation and development.X.Registration
286、 Form for Reception of Research,Communication,Interviews and Other Activities 1.Registration Form for reception of research,communication,interviews and other activities during the reporting period Applicable Not applicable Reception Time Reception location Reception Method Reception target type Rec
287、eption objects Main content of the discussion and the information provided Index of the basic information of research August 8,2020 Company meeting room Field Investigation Institution Brokerage researcher and fund company manager Business introduction in first half of the year and Q&A For details,p
288、lease refer to the Record of Investor Relations Activities on August 8,2020 announced by the Company on http:/ on August 10,2020.October 29,2020 Company meeting room Field Investigation Institution Brokerage researcher and fund company manager Business introduction in Q3 and Q&A For details,please r
289、efer to the Record of Investor Relations Activities on Thursday,October 29,2020 announced by the Company on http:/ on Sunday,November 1,2020.2020 Annual Report of Songcheng Performance Development Co.,Ltd 39 Section V Significant Events I.Distribution of Common Stock Profits of the Company and Capit
290、alization of Capital Reserves Distribution policies of the common stock profits during the reporting period,especially the formulation,implementation or adjustment of the cash dividend policies Applicable Not applicable Reviewed and approved at the 6th meeting of the 7th Board of Directors held on A
291、pril 27,2020 and at the annual shareholders meeting for 2019 held on May 18,2020,the companys plan for profit distribution in 2019 was:Taking the total share capital of 1,452,607,800 shares of 2019 as the basis,RMB 2.00(tax included)of dividend for every 10 shares was distributed to all the sharehol
292、ders,with a total amount of cash dividend of RMB 290,521,560 and 8 shares capitalized from the capital reserves were distributed to all the shareholders for every 10 shares,with a total number of 1,162,086,240 shares.After capitalization,the total share capital amounted to 2,614,694,040 shares.Durin
293、g the reporting period,the Company has completed the equity distribution.The equity registration date:May 28,2020 and the date of exclude right(XR)and exclude dividend(DR):May 29,2020.Special notes on cash dividend policies Whether they comply with the requirements of the Companys articles of incorp
294、oration or the resolutions of the General Meeting of Shareholders:Yes Whether the dividend standards and proportions are distinct and clear:Yes Whether the relevant decision-making procedures and mechanisms are complete:Yes Whether the independent directors performed their duties and played their du
295、e role:Yes Whether the minority shareholders have the opportunity to fully express their opinions and appeals,and whether their legitimate rights and interests have been fully protected:Yes Whether relevant conditions and procedures are compliant and transparent when the cash dividend policies are b
296、eing adjusted or changed:Not applicable.The plan for profit distribution and capitalization of capital reserves during the reporting period is consistent with relevant provisions in the articles of association and dividend management measures of the Company Yes No Not applicable The plan for profit
297、distribution and capitalization of capital reserves during the reporting period is in compliance with relevant provisions in the articles of association of the Company.Profit distribution and capitalization of capital reserves in the current year Number of bonus shares per 10 shares(shares)0 Number
298、of dividend payout per 10 shares(RMB)(tax included)0.5 2020 Annual Report of Songcheng Performance Development Co.,Ltd 40 Number of capitalized shares per 10 shares(shares)0 Equity base in the distribution preplan(shares)2,614,694,040 The amount of cash dividends(yuan)(including tax)130,734,702.00 T
299、he amount of cash dividends(yuan)in other ways(such as share repurchase)0.00 The total amount of cash dividends(including in other ways)(yuan)130,734,702.00 Distributable profits(RMB)3,132,049,591.95 The ratio of the total amount of cash dividends(including in other ways)to the total amount of profi
300、t distribution 100.00%Latest cash dividend If the Companys development stage is not easy to define but there are significant capital expenditure arrangements,when the profits are being distributed,the proportion of the cash dividends in this profit distribution should be at least 20%Details of the p
301、replans on profit distribution or capitalization of capital reserves Audited by BDO China Shu Lun Pan CPAs(special general partnership),the net profit attributable to the shareholders of the listed company in 2020 was RMB-1,752,398,000.Based on the total share capital of 2,614,694,040 shares as at D
302、ecember 31,2020,the Company distributed RMB 0.50(tax included)of dividend for every 10 shares to all the shareholders,with a total cash dividend of RMB 130,734,702.The Companys common stock dividends distribution plan(preplan)and capital reserve capitalization plan(preplan)in the past three years(in
303、cluding this reporting period)The 2018 profit distribution plan:according to the resolution of 2018 annual shareholders meeting,the Company implemented the 2018 profit distribution plan on May 15,2019,which was:based on the total share capital of 1,452,607,800 shares as at December 31,2018,the Compa
304、ny distributed RMB 1.2(tax included)of dividend for every 10 shares to all the shareholders,with a total cash dividend of RMB 174,312,900.The plan for profit distribution and capitalization of capital reserves of the Company in 2019:according to the resolution of 2019 annual shareholders meeting,the
305、 Company implemented the 2019 profit distribution plan on May 28,2020,which was:Taking the total share capital of 1,452,607,800 shares as at December 31,2019 as the basis,RMB 2.00(tax included)of dividend for every 10 shares was distributed to all the shareholders,with a total cash dividend of RMB 2
306、90,521,560 and 8 shares capitalized from the capital reserves were distributed to all the shareholders for every 10 shares,with a total number of 1,162,086,240 shares.Upon such capitalization,the total share capital amounted to 2,614,694,040 shares.The 2020 profit distribution preplan:the 10th meeti
307、ng of the 7th Board of Directors and the 8th meeting of the 7th Board of Supervisors held by the Company on April 22,2021 reviewed and approved the 2020 Profit Distribution Preplan.According to the Audit Report issued by BDO China Shu Lun Pan CPAs Co.,Ltd(Xin Kuai Shi Bao Zi 2021 No.ZA11461),the Com
308、pany achieved a net profit attributable to the shareholders of listed companies in the amount of RMB-1,752,398,009.60 in 2020,plus the undistributed profits at the end of the previous year in the amount of RMB 5,176,157,180.79,deduct the distributed dividends for 2019 in the amount of RMB 290,521,56
309、0.00 and add the retained earnings carried forward from other comprehensive income in the amount of RMB-1,356,586.59,the actual distributable profit for shareholders in 2020 was RMB 3131881024.60.As at December 31,2020,the balance of capital reserves of the Company was RMB 1,211,364,214.86.Based on
310、the total share capital of 2,614,694,040 shares at the end of 2020,the Company planned to distribute RMB 0.50(tax included)of dividend for every 10 shares to all the shareholders,with a total cash dividend of RMB 130,734,702 in 2020.It is held by the Board of the Directors of the Company that althou
311、gh the epidemic impacted the performances of the Company,2020 Annual Report of Songcheng Performance Development Co.,Ltd 41 the 2020 profit distribution plan proposed by the Company was consistent with the provisions concerning profit distribution in the Company Law,the Circular of the CSRC on Furth
312、er Implementation of the Matters Concerning Cash Dividends of the Listed Companies,the Guideline No.3 of the CSRC on Regulation of the Listed Companies-Cash Dividends of the Listed Companies,the Articles of Association,and other laws and regulations,and was legal,compliant and reasonable in view of
313、the Companys confidence for long-term development,for better consideration of both the immediate interests and long-term interests,in accordance with the relevant provisions of the CSRC which encourage distribution of dividends and on the condition that the healthy,sustainable development of the Com
314、pany was guaranteed.The Company needs to submit the above plan to 2020 annual shareholders meeting of the Company for review.The Companys cash dividends for common stocks in the past three years(including this reporting period)Unit:RMB Year Cash dividend amount(tax included)Net profit attributable t
315、o common stock shareholders of listed companies in the consolidated financial statement of the year for dividend distribution The ratio of cash dividends to the net profit attributable to ordinary shareholders of listed companies in the consolidated statements The amount of cash dividends in other w
316、ays(such as share repurchase)The proportion of cash dividends in other ways to the net profit attributable to ordinary shareholders of listed companies in the consolidated statements Total amount of cash dividends(including other ways)The ratio of total amount of cash dividends(including other ways)
317、to the net profit attributable to ordinary shareholders of listed companies in the consolidated statements 2020 130,734,702.00-1,752,398,009.60-7.46%130,734,702.00-7.46%2019 290,521,560.00 1,339,790,994.94 21.68%290,521,560.00 21.68%2018 174,312,936.00 1,287,186,547.41 13.54%174,312,936.00 13.54%The
318、 Companys profits during the reporting period and the parent companys distribution of common stock shareholders profits are positive but a cash dividend distribution preplan for common stock is not proposed.Applicable Not applicable II.Performance of Commitments 1.Commitments made by the Companys co
319、ntrolling shareholders,shareholders,related parties,purchasers and purchasing companies and have been fulfilled during the reporting period and those that have not been fulfilled by the end of the reporting period Applicable Not applicable There are no commitments which should be fulfilled during th
320、e reporting period as promised by the Companys actual controller,shareholders,related parties,purchasers and purchasing companies and those that have not been fulfilled by the end of the reporting period.2020 Annual Report of Songcheng Performance Development Co.,Ltd 42 2.If there is a profit foreca
321、st for the Companys assets or projects,and the reporting period is still within the profit forecast period,the Company shall make an explanation on the fulfillment and its reasons Applicable Not applicable III.Occupation of the Capital of Listed Companies by Controlling Shareholders and Their Relate
322、d Parties for Non-operational Purposes Applicable Not applicable During the reporting period,there is no non-operational capital occupation over listed companies by controlling shareholders and their related parties.IV.Explanations Made by the Board of Directors on the Latest Non-standard Audit Repo
323、rt Applicable Not applicable V.Explanations Made by the Board of Directors,the Board of Supervisors and Independent Directors(If Any)on the Non-standard Audit Report from the Accounting Firm during the Reporting Period Applicable Not applicable VI.Explanations Made by the Board of Directors on the C
324、hanges to the Accounting Polices and Accounting Estimates or the Corrections of Significant Accounting Error during the Reporting Period Applicable Not applicable 1 1、Changes in significant accounting policies 1)Implementation of Accounting Standards for Business Enterprises No.14-Revenue(revised in
325、 2017)(hereinafter referred to as New Revenue Standards)The Ministry of Finance revised the Accounting Standards for Business Enterprises No.14-Revenue in 2017 The revised standards stipulate that for the first implementation of the standards,the amount of retained earnings and other related items i
326、n the financial statements at the beginning of the year should be adjusted according to the cumulative effects,and the information for the comparable period should not be adjusted.This Company implemented the new revenue standards since January 1,2020.According to the standards,the company only adju
327、sted the retained earnings and other related items in the financial statements at the beginning of the year 2020 for the cumulative effects of contracts that have not been completed on the date of first implementation,and the comparative financial statements were not adjusted.These standards have th
328、e following major effects:Content and Reasons for Change in Accounting Policies Approval process Statements Affected Affected Amount of Balance on January 1,2020 Consolidated Subsidiaries Parent company(1)The advance payments related to the contractual income are reclassified into the The 6th meetin
329、g of the 7th Board of Directors Received Prepayments-311,838,903.34-731,628.89 2020 Annual Report of Songcheng Performance Development Co.,Ltd 43 contractual liabilities.Contract liabilities 294,302,487.38 710,319.31 Other Current Liabilities 17,536,415.96 21,309.58 Compared with the original revenu
330、e standards,implementation of the new revenue standards has the following effects on the relevant items of the financial statements in 2020(increase/(decrease):Balance Sheets Items Affected Affected Amount of Balance on Thursday,December 31,2020 Consolidated Subsidiaries Parent company Contract liab
331、ilities 188,550,237.52 Received Prepayments-192,064,139.60 Other Current Liabilities 3,513,902.08 2)Implementation of Accounting Standards for Business Enterprises Interpretation No.13 The Ministry of Finance issued the Accounting Standards Interpretation for Business Enterprises No.13(CaiKuai 2019
332、No.21,hereinafter referred to as Interpretation No.13)on December 10,2019,which came into force on January 1,2020.Retrospective adjustment was not required.Identification of Related Parties Interpretation No.13 clarifies that the following circumstances constitute a related party:a joint venture or
333、affiliated business between an enterprise and other member units(including parent companies and subsidiaries)of the enterprise group to which it belongs;a joint venture of the enterprise and other joint ventures or affiliated business.In addition,Interpretation No.13 also clarifies that only two or more companies that are only significantly affected by one party do not constitute a related party.I