Performance description
The company's operating income in the first half of 2015 was 2.342 billion yuan, up 10.78 percent from the same period last year; the net profit belonging to shareholders of listed companies was 430 million yuan, up 13.60 percent from the same period last year; and the net cash flow generated by operating activities was 589 million yuan, down 12.31 percent from the same period last year. Basic earnings per share is 0.17 yuan.
Performance review
Integrate resources to expand the scale of users, steady improvement in performance: the company's revenue and net profit in the first half of 2015 continue the trend of steady growth in last year's performance. After listing, we will step up the implementation of the fund-raising commitment investment project, that is, the capital increase and development company will integrate the provincial radio and television network projects, further straighten out the management relationship among provincial, municipal and county companies in accordance with the management and control positions at the provincial, municipal and county levels, and ensure the implementation of various strategies and sustainable development. At the same time, do a good job in the integration and reorganization of internal resources, and implement the top-level design of the company's internal organization and the construction of internal control system. Through the integration of resources, the company continues to expand the scale of users, increasing its business items such as video access, urban construction fees, commodity sales and agency projects compared with the same period last year, and the sales gross profit margin increased by about 2 percentage points. At the same time, although the main points of the company's sales expenses investment
The year-on-year increase of 33.35%, but the sharp decline in financial expenses still increased the company's net sales interest rate by 1 percentage point.
Digital rectification has brought room for growth, and the development of interactive television has started: according to the prospectus, the company's largest source of revenue is viewing and maintenance fees, accounting for about 45% of the total revenue. The basis of viewing and maintenance fee is the size of users. As of December 31, 2014, the company had 14.42 million digital TV users, with a digitization rate of about 81.38%, an increase of 4.62% from 76.76% at the end of 2013. As China plans to turn off analog TV signals in 2015, this means that all existing analog signal users will be digitally converted this year. At present, the charge for a single user of analog signal users in Jiangsu Province is very low or free. After the completion of rectification, the basic viewing fee for a single digital user will rise to 21-24 yuan, and the value of a single user will be greatly increased, resulting in a considerable increase in basic viewing and maintenance fees. The company's interactive TV is still in its infancy, and as of December 31, 2014, the number of interactive TV user terminals accounted for only 15.63% of the total number of Internet users. The opening of the interactive function will bring about an increase of 8 yuan per month in the basic service fee for each household, and the increase in the opening rate will lead to the growth of the basic service income of interactive TV. After the opening of interactive TV, the value-added service of digital TV can be carried out on a large scale.
The forerunner of the "triple play" process has a long-term positive trend: on September 4, 2015, the General Office of the State Council issued the "Triple play Promotion Plan". We believe that the "promotion plan" issued in the A-share media sector mainly benefits the leading state-owned enterprises in the cable TV sector. The stronger the comprehensive strength of the enterprise, the more likely it is to be favorable. Because to achieve business diversification and be recognized by the market must be based on high-speed, open, stable network and a large number of users. The company is located in East China, the living standard of residents is high, the size of the company is large, the foundation of traditional business is solid, new business type is booming, it can be said that it is a leading enterprise in the development of "triple play" and has a good long-term trend.
The risk indicates that the progress of multi-network integration is lower than expected; the progress of industry-finance cooperation project is slow; and there are major changes in national policy.