Beijing Media Corporation Limited

1000

CNE100000254

Advertising & Marketing

Delayed Hong Kong S.E. Other stock markets 04:08:06 2024-04-30 am EDT			5-day change	1st Jan Change
0.39 ^HKD	-.--%		+1.30%	-13.33%

Mar. 22	Beijing Media Corporation Limited Reports Earnings Results for the Full Year Ended December 31, 2023	CI
Feb. 07	Beijing Media Renews Advertising Deal With Parent BYDA	MT

Beijing Media : 2020 INTERIM REPORT

September 11, 2020 at 04:40 am EDT

2020

Company Profile

Corporate Information

Chairman's Statement

Management Discussion and Analysis

Consolidated Balance Sheet (Unaudited)

Consolidated Income Statement (Unaudited)

Consolidated Cash Flow Statement (Unaudited)

Consolidated Statement of Changes in Shareholders' Equity (Unaudited)

Notes to the Financial Statements

CONTENT

2	BEIJING
MEDIA
3

4	CORPORATION
24
10
20
22	LIMITED
26

27

COMPANY	2020
PROFILE

LIMITED CORPORATION MEDIA BEIJING

COMPANY PROFILE

Beijing Media Corporation Limited (the "Company" or "Beijing Media", together with its subsidiaries, collectively referred to as the "Group") is one of the leading media companies in the People's Republic of China (the "PRC"). The Group's main advertising medium is Beijing Youth Daily. Other core businesses of the Group include the production and printing of newspapers, and trading of print-related materials. The Company was listed on the Main Board of Hong Kong Stock Exchange on 22 December 2004.

Company Structure (as at 30 June 2020)

Beijing Media

Corporation Limited

92.84%

100%

51%

60%

84.69%

100%

52.661%

BYD

Beijing

Beiqing

Chongqing

Beiqing

Logistics

Beiqing

Long Teng

Youth

CéCi

Network

Community

Company

Outdoor

Investment

Media

Advertising

Culture

Media

Limited

Management

Company

(Beijing)

Communication

Technology

Co., Ltd.

(Beijing)

Limited

Co., Ltd.

(Beijing)

Co., Limited

Co., Ltd.

COMPANY WEBSITE

www.bjmedia.com.cn

STOCK INFORMATION

Stock Code: 1000

Board Lot: 500 shares

Number of Shares Issued (as at 30 June 2020): 197,310,000 shares

Market Capitalisation (as at 30 June 2020): HK$147.98 million

Financial Year End: 31 December

Bloomberg's Stock Machine Search Code: 1000HKEquity

Reuters Stock Machine Search Code: 1000.HK

2020	CORPORATE INFORMATION

AS AT 30 JUNE 2020

EXECUTIVE DIRECTORS

Ji Chuanpai (Chairman)

Wu Bin (Acting President)

Shang Da (Vice President)

Liu Jia

NON-EXECUTIVE DIRECTORS

Zang Furong Note 1

Sun Fang

Yang Qing

INDEPENDENT NON-EXECUTIVE DIRECTORS

Cui Enqing

Chen Ji

Wu Changqi

Shi Hongying

Chan Yee Ping, Michael Note 2

JOINT COMPANY SECRETARIES

Shang Da

Yu Leung Fai

AUTHORISED REPRESENTATIVES

Ji Chuanpai

Wu Bin

ALTERNATIVE AUTHORISED REPRESENTATIVES

Shang Da

Yu Leung Fai

REGISTERED OFFICE

Building A, No. 23 Baijiazhuang Dongli, Chaoyang District, Beijing, the PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

10/F, Guangdong Investment Tower,

148 Connaught Road Central,

Hong Kong

LEGAL ADVISER

as for Hong Kong Law DLA Piper Hong Kong

25/F, Three Exchange Square, 8 Connaught Place, Central, Hong Kong

LIMITED CORPORATION MEDIA BEIJING

AUDIT COMMITTEE	AUDITORS
Chan Yee Ping, Michael (Chairman) Note 2
WUYIGE Certified Public Accountants LLP
Wu Changqi
Room 1504,
Cui Enqing
Institute International Building,

REMUNERATION COMMITTEE	No. 1 Zhichun Road,
Haidian District,
Cui Enqing (Chairman)	Beijing, the PRC
Chen Ji

Wu Changqi	HONG KONG SHARE REGISTRAR
NOMINATION COMMITTEE	Computershare Hong Kong Investor
Services Limited
Ji Chuanpai (Chairman)	Rooms 1712-1716,
Chen Ji	17/F, Hopewell Centre,
Wu Changqi	183 Queen's Road East,
	Wanchai, Hong Kong

Note:

Ms. Zang Furong resigned as the non-executive director ("Director") of the board (the "Board") of directors of the Company on 14 August 2020 due to reach of retirement age. Please refer to the announcement of the Company dated 14 August 2020 for details.
Upon the approval at the annual general meeting of the Company convened on 19 June 2020, Mr. Chan Yee Ping, Michael was appointed as the independent non-executive Director of the seventh session of the Board of the Company. At the Board meeting convened on the same day, Mr. Chan Yee Ping, Michael was elected as the chairman of the Audit Committee of the Company. Please refer to the announcement of the Company dated 19 June 2020 for details.

CHAIRMAN'S STATEMENT		2020

LIMITED CORPORATION MEDIA BEIJING

Dear Shareholders,

On behalf of the Group, I hereby present the report on interim results of the Group for the six months ended 30 June 2020 (the "First Half of 2020").

BUSINESS REVIEW OF THE GROUP

The Group is principally engaged in three core business: (1) advertising sales, which contributes to part of the Group's turnover; (2) printing, whose turnover includes revenue from printing publications arranged by BYD Logistics; and (3) trading of print-related materials, which involves the supply and trading of, among other things, newsprint, ink, lubricants, films, PS boards and rubber sheets to customers including commercial printers.

In the First Half of 2020, the total operating revenue of the Group was RMB74,279 thousand (corresponding period of 2019: RMB112,729 thousand), representing a decrease of 34.11% as compared with that for the corresponding period of 2019. Net loss attributable to shareholders of the Company was RMB37,121 thousand (net loss attributable to shareholders of the Company for the corresponding period of 2019: RMB88,453 thousand), representing a year-on-year decrease of approximately 58.03%.

In the First Half of 2020, due to the impact of the COVID-19 epidemic and market policies, the macroeconomic growth slowed down, the advertising market of print media continued to be sluggish, and the Group's operating income has also declined.

In light of a severe operating situation, the Group enhanced its comprehensive competitiveness from various aspects for growth and stability:

Aiming at developing convergence media and strengthening the use of new media platforms: the Group integrated superior advertising resources including newspapers, WeChat, Weibo, Beijing Headlines and YNET.com and endeavored to drive marketing performance through planning;
Making breakthroughs in key industries to boost the whole segments: based on the four key business divisions of finance, automobile, real estate and the Internet in advertising industry, the Group established the education division of advertising industry to further improve the business ecology and stabilize the market share;
Focusing on optimizing and adjusting the business segment, the Group cleaned up loss-making companies, and actively recovered the receivables of advertising business.

2020	CHAIRMAN'S STATEMENT

BUSINESS REVIEW OF THE GROUP (Continued)

Advertisement Business

In the First Half of 2020, revenue from advertising business of the Group was RMB39,517 thousand (corresponding period of 2019: RMB44,434 thousand), representing a decrease of 11.07% as compared with the corresponding period of last year.

In the First Half of 2020, advertising income was affected as the marketing activities significantly reduced from February to May 2020 resulting from the COVID-19 epidemic; coupled with the continuous impact of new media, advertising in the traditional print media market was still showing a downward trend.

From a structural perspective, the Company has actively integrated advantageous resources and built a convergence media platform to develop a variety of new media advertising forms for customers, such as Weibo, WeChat, APP and website, based on traditional print media advertising. However, as the proportion of new media advertising revenue in overall advertising revenue of the Company is still small, the increase in new media advertising revenue is not enough to make up for the decline in traditional print media advertising revenue, and the overall advertising revenue of the Company still has declined. This also shows that there is still room for optimization of the advertising revenue structure of the Company. In the next step, the Company will continue to adjust the advertising business structure, expand the new media advertising market, and strive to increase revenue.

From an industrial perspective, the Company's advertising operations continued to focus on key industries, so as to stabilize the original business market share while expanding advantageous businesses. The Company's overall advertising revenue declined, but advertising revenue in many of divisions has shown an upward trend. For example, the Company's advertising revenue from the automobile division increased by 82.21% as compared with the corresponding period of last year; advertising revenue from divisions such as the Internet+, enrollment and recruitment, food and beverage, pension, government (announcements) which are closely related to people's daily consumption all increased as compared with the corresponding period of last year. However, advertising revenue from divisions such as tourism, performances, sports, film and television and real estate which are severely affected by the epidemic declined as compared with the corresponding period last year.

LIMITED CORPORATION MEDIA BEIJING

CHAIRMAN'S STATEMENT		2020

LIMITED CORPORATION MEDIA BEIJING

BUSINESS REVIEW OF THE GROUP (Continued)

Advertisement Business (Continued)

In the First Half of 2020, while consolidating the original advantageous industry advertising, the Company focused on the use of convergence media marketing platforms, enhanced the integration of superior resources and formulated a distribution plan that matches the clients' industries. The following measures are mainly adopted:

Pushing forward advertising distribution starting with planning
The finance business division of the advertising industry launched a series of planning in themed advertising based on market conditions, such as "the finance industry is in action against the epidemic" and "the finance industry helps resume work and production", to actively provide customers with publicity ideas and promote advertising bidding and the actual distribution of orders signed by customers, and achieved sales promotion with content and stabilized market share.
Exploring opportunities in key industries, improving business ecology
The Company established the advertising industry education department, combined with the original advantageous educational resources, and extended the experience of the previous four key industry departments to the education industry, striving to integrate and explore industry opportunities and increase advertising revenue.
Enhancing performance appraisal management and implementing effective incentives
The Company implemented performance appraisal and reward-punishment-parallel mechanism, and engaged professional consultants to review and promote the reform of the operating personnel remuneration performance system.

Film and Television Business

In the First Half of 2020, the TV series "Setting Sail" 《( 啟航》) presented by the Company as the lead-presenter in the theme of urban reform and development achieved satisfactory social and economic benefits, and won the highest award in the literature and art circles of Beijing

the 9th Beijing Literature and Art Award. Due to the impact of the COVID-19 epidemic, the film and television industry was significantly affected. The Company's film and television business was also affected and significantly reduced in the First Half of 2020.

2020	CHAIRMAN'S STATEMENT

BUSINESS REVIEW OF THE GROUP (Continued)

Results of Major Subsidiaries of the Group

Beijing Beiqing Outdoor Advertisement Co., Ltd. ("Beiqing Outdoor") is a wholly-owned subsidiary of the Company which principally engages in the operation of urban outdoor single column billboards. Affected by the COVID-19 epidemic, traditional advertising business remained severe, and due to the expiration of the operation rights of previously operated single column billboards, Beiqing Outdoor's business significantly reduced in the First Half of 2020.

Beiqing Community Media Technology (Beijing) Co., Ltd. ("Beiqing Community Media") is a 52.661%-owned subsidiary of the Company. Relying on its media brand advantages and marketing methods, Beiqing Community Media uses mobile internet technology to integrate online and offline resources of the community, and pursues the Beiqing's strategy of "going down to grassroots" through the multi-channel joint communication means of paper media + government services + community activities. With nearly 7 years of endeavor, it established a multi-integrated sustainable business model based on the three major business segments, namely Beiqing Community Daily, government services and community activities, and transformed from the original traditional media to a government-affiliated convergence media service business model. Up to now, Beiqing Community Media has a total of 7 newspapers of Beiqing Community Daily across the whole urban area of Beijing, including Chaoyang, Wangjing, Shunyi, Changping, Daxing and Beijing Administrative Sub-centers, reaching nearly more than one million readers. At the same time, the branches and marketing department of Beiqing Community Media operated a total of 82 new media accounts on WeChat, Weibo, headlines accounts, Douyin, etc.

In the First Half of 2020, based on the operation of existing government service project, Beiqing Community Media continued to extend government service and social group procurement cooperation, and undertook new media operation projects. In particular, Beiqing Community Media undertook the cooperation with the government departments and social

organizations to publish newspapers, establishing a total of 3 magazines, including "Shichahai Culture Monthly" 《( 什剎海文化月刊》), "《Beixinqiao Scenery》" 《( 北新橋風采》) and "News"

《( 建聞》). It also continued to cooperate with the Chaoyang District Government of Beijing, and operated Chaoyang APP projects for Chaoyang District Convergence Media Center, and provided public opinion service of Chaoyang District Government. It provided comprehensive services such as monitoring of public opinion in the public opinion studio for the Network Information Office of CPC Beijing Xicheng District Committee. It also provided short video shooting services for Xicheng District Convergence Media Center; and launched new media publicity and promotion services for Management Committee of Beijing Chaoyang National Cultural Industry Innovation Experimental Zone.

LIMITED CORPORATION MEDIA BEIJING

CHAIRMAN'S STATEMENT		2020

LIMITED CORPORATION MEDIA BEIJING

BUSINESS REVIEW OF THE GROUP (Continued)

Results of Major Subsidiaries of the Group (Continued)

Affected by the COVID-19 epidemic, Beiqing Community Media's offline activities significantly reduced in the First Half of 2020. In the second half of 2020, Beiqing Community Media will strive for steady progress, and expand more cooperation projects while promoting government services to seek new profit growth points.

Beiqing Network Culture Communication Co., Ltd. ("Beiqing Network Culture") is a wholly-owned subsidiary of the Company. Beiqing Network Culture, as a limited partner, formed Beijing Runxin Dingtai Investment Centre (limited partnership) (the "Fund") in 2013. The Fund also actively promoted various investment projects to realize exits via listing, mergers and acquisitions and restructuring, repurchase and NEEQ market transfer, etc. In particular, Well Pharmaceutical, Jushri Technologies and Bright Laser which the Fund invested and which were listed last year have begun to reduce shareholdings and exit, and Beijing TINAVI Medical Technology Co., Ltd. the Fund invested was officially listed on the Science and Technology Innovation Board on 7 July 2020.

Chongqing Youth Media Company Limited ("Chongqing Youth Media") is a 60%-owned subsidiary of the Company. In the First Half of 2020, while the operations were affected by the COVID-19 epidemic and the original "Chongqing Youth Daily" new media platform was suspended, Chongqing Youth Media continued to strengthen the Company's new media platform by actively developing the new media accounts. Among them, the new account of Douyin and Kuaishou was opened, more than 1,000 works were published, and the cumulative number of readers exceeded 50 million; more than 2,000 Weibo posts were published through the registered Weibo account, accumulating nearly 100,000 fans in a short period of time, with great interactions among fans.

BYD Logistics Company Limited ("BYD Logistics") is a 92.84%-owned subsidiary of the Company and is principally engaged in printing and trading business of printing-related materials. In the First Half of 2020, affected by the COVID-19 epidemic, the purchase demand most of material trading customers of BYD Logistics has dropped sharply, and sales revenue has fallen. It is expected that after the epidemic eases in the second half of 2020, there will be a certain degree of growth in the market. BYD Logistics will pay close attention to the market condition and strive to make a breakthrough in the second half of the year.

2020	CHAIRMAN'S STATEMENT

PROSPECTS AND FUTURE PLANS

In the second half of 2020, the Group will further strengthen the use of convergence media marketing platforms, integrate advantageous resources, improve the business division system in advertising industry, and strengthen performance appraisal.

In the second half of 2020, the Group will continue to advance cost control measures in all dimensions and optimize business segments and industrial layout.

In the second half of 2020, the Group will conduct capital operations when appropriate.

In the second half of 2020, with the existing businesses still as the core, the Group will actively expand into new businesses, cultivate new profit growth point, and persistently consolidate and leverage on the relationship with Beijing Youth Daily Agency ("BYDA") to promote the development of the Group's business, and strive to serve as a leading media group in the industry with cross-media platforms in the PRC.

The Group's structural optimization initiatives mentioned above will have significant and profound impact on the Group's long-term, stable and positive development in the future. The Group's business in the First Half of 2020 was based on the concerted efforts of the entire management teams and staff in each of our business segments. The Group's success were due to key factors as a keen insight to market opportunities and the excellent quality of our management teams and staff. On behalf of the shareholders of the Company and other members of the Board, I would like to express my heartfelt and sincere gratitude to the entire management teams and staff in each of our business segments.

Ji Chuanpai

Chairman

28 August 2020

Beijing, the PRC

LIMITED CORPORATION MEDIA BEIJING

MANAGEMENT	2020
DISCUSSION AND ANALYSIS

LIMITED CORPORATION MEDIA BEIJING

FINANCIAL REVIEW

Total Operating Revenue
For the six months ended 30 June 2020, total operating revenue of the Group was RMB74,279 thousand (corresponding period of 2019: RMB112,729 thousand), representing a decrease of 34.11% as compared with that for the corresponding period of 2019. Herein, revenue from advertising sales decreased by RMB4,917 thousand, representing a decrease of 11.07% as compared with that for the corresponding period of 2019; revenue from printing decreased by RMB1,004 thousand, representing a decrease of 41.18% as compared with that for the corresponding period of 2019; and revenue from the trading of print-related materials decreased by RMB24,239 thousand, representing a decrease of 45.76% as compared with that for the corresponding period of 2019.
Operating Costs and Tax and Surcharges
For the six months ended 30 June 2020, operating costs of the Group were RMB63,889 thousand (corresponding period of 2019: RMB95,074 thousand), representing a decrease of 32.80% as compared with that for the corresponding period of 2019. Herein, costs of advertising sales decreased by RMB6,794 thousand, representing a decrease of 16.84% as compared with that for the corresponding period of 2019; costs of printing decreased by RMB776 thousand, representing a decrease of 38.26% as compared with that for the corresponding period of 2019; costs of the trading of print-related materials decreased by RMB22,052 thousand, representing a decrease of 44% as compared with that for the corresponding period of 2019; tax and surcharges were RMB945 thousand (corresponding period of 2019: RMB2,832 thousand), representing a decrease of 66.63% as compared with that for the corresponding period of 2019.
Selling Expenses
For the six months ended 30 June 2020, selling expenses of the Group were RMB7,268 thousand (corresponding period of 2019: RMB10,080 thousand), representing a decrease of 27.9% as compared with that for the corresponding period of 2019.
Administrative Expenses
For the six months ended 30 June 2020, administrative expenses of the Group were RMB15,183 thousand (corresponding period of 2019: RMB14,537 thousand), representing an increase of 4.44% as compared with that for the corresponding period of 2019.

2020	MANAGEMENT
	DISCUSSION AND ANALYSIS

FINANCIAL REVIEW (Continued)

Financial Expenses
For the six months ended 30 June 2020, financial expenses of the Group were RMB-1,150 thousand (corresponding period of 2019: RMB54 thousand), representing a decrease of 2,229.63% as compared with the net value for the corresponding period of
2019. Herein, interest income was RMB1,276 thousand (corresponding period of 2019: RMB658 thousand), representing an increase of 93.92% as compared with that for the corresponding period of 2019.
Share of Loss of Associates
For the six months ended 30 June 2020, share of loss of associates of the Group was RMB6,263 thousand (corresponding period of 2019: RMB5,163 thousand), representing an increase in loss of 21.31% as compared with that for the corresponding period of 2019.
Operating Profit
For the six months ended 30 June 2020, operating profit of the Group was RMB-38,208 thousand (corresponding period of 2019: RMB-95,286 thousand), representing a decrease in loss of 59.90% as compared with that for the corresponding period of 2019.
Income Tax Expenses
For the six months ended 30 June 2020, income tax expenses of the Group for the current period were RMB1,229 thousand (corresponding period of 2019: RMB-247 thousand), representing an increase of 597.57% as compared with that for the corresponding period of 2019.
Net Profit/Loss Attributable to Shareholders of the Company
For the six months ended 30 June 2020, net loss attributable to shareholders of the Company was RMB37,121 thousand (corresponding period of 2019: net loss of RMB88,453 thousand), representing a decrease in net loss of 58.03% as compared with that for the corresponding period of 2019.
Financial Resources and Liquidity
For the six months ended 30 June 2020, the Group's funds are mainly derived from the cash generated from operating business and deposits balance. The Group's funds are mainly used as the working capital and general recurrent expenses of the Group.

As at 30 June 2020, current assets of the Group were RMB441,888 thousand (31 December 2019: RMB452,716 thousand), including bank balances and cash of RMB227,905 thousand (31 December 2019: RMB217,264 thousand). Non-current assets of the Group were RMB417,277 thousand (31 December 2019: RMB442,729 thousand).

LIMITED CORPORATION MEDIA BEIJING

MANAGEMENT	2020
DISCUSSION AND ANALYSIS

LIMITED CORPORATION MEDIA BEIJING

FINANCIAL REVIEW (Continued)

10. Financial Resources and Liquidity (Continued)

As at 30 June 2020, current liabilities of the Group were RMB96,194 thousand (31 December 2019: RMB92,135 thousand) and non-current liabilities were RMB7,268 thousand (31 December 2019: RMB8,313 thousand).

As at 30 June 2020, shareholders' equity of the Group was RMB755,703 thousand (31 December 2019: RMB794,997 thousand).

Bank Borrowings, Overdrafts and Other Borrowings
As at 30 June 2020, the bank borrowings of the Group were Nil (31 December 2019: Nil). The currency unit of cash and cash equivalent held by the Group was Renminbi.
Gearing Ratio
As at 30 June 2020, gearing ratio of the Group was 13.69% (31 December 2019: 12.64%) (the gearing ratio is derived from dividing the Group's total liabilities by its total equity).

SHARE STRUCTURE (AS AT 30 JUNE 2020)

		Proportion to total
	Number of Shares	share capital
		(%)
Holders of domestic shares
- Beijing Youth Daily Agency	124,839,974	63.27
- Beijing Chengshang Cultural
Communication Co., Ltd.	7,367,000	3.73
- China Telecommunication Broadcast
Satellite Co., Ltd.	4,263,117	2.16
- Beijing Development Area Ltd.	2,986,109	1.52
- Sino Television Co., Ltd.	2,952,800	1.50

Domestic shares (subtotal)	142,409,000	72.18
H shares Note	54,901,000	27.82

Total share capital	197,310,000	100

Note:

Including 19,533,000 H shares held by Leshi Internet Information & Technology Corp., Beijing, representing 9.90% of the total share capital of the Company.

2020	MANAGEMENT
	DISCUSSION AND ANALYSIS

INTERESTS OF SUBSTANTIAL SHAREHOLDERS IN SHARES AND UNDERLYING SHARES

As at 30 June 2020, so far as the Directors, supervisors ("Supervisors") and chief executive of the Company are aware, according to the register of interests and/or short positions in shares required to be kept pursuant to Section 336 of Part XV of the SFO, the persons in the following table had an interest and/or short position in the shares or underlying shares of the Company:

					Percentage of
					H shares/
					Domestic
					shares over
					total issued	Percentage in
				Number of	H shares/	total issued
		H shares/		H shares/	Domestic	share capital
		Domestic	Nature of	Domestic	shares	of the
Name of shareholders	Capacity	shares	Interest	shares held	respectively	Company
Beijing Youth Daily Agency	Beneficial owner	Domestic shares	N/A	124,839,974	87.66	63.27
Beijing Chengshang Cultural	Beneficial owner	Domestic shares	N/A	7,367,000	5.17	3.73
Communication
Co., Ltd. Note 1
Leshi Internet Information &	Beneficial owner	H shares	Long position	19,533,000	35.58	9.90
Technology Corp.,
Beijing Note 2
Founder Investment (HK)	Beneficial owner	H shares	Long position	4,939,000	8.99	2.50
Ltd. Notes 3&4
Beijing University Founder	Interest of controlled	H shares	Long position	4,939,000	8.99	2.50
Investment Co., Ltd. Note 3	corporation
Beijing Beida Founder Group	Interest of controlled	H shares	Long position	4,939,000	8.99	2.50
Corporation Note 3	corporation
Beijing University New	Interest of controlled	H shares	Long position	4,939,000	8.99	2.50
Technology	corporation
Corporation Note 3
Beijing University Note 3	Interest of controlled	H shares	Long position	4,939,000	8.99	2.50
	corporation
CITI CITI Ltd. Note 4	Interest of controlled	H shares	Long position	4,939,000	8.99	2.50
	corporation
Xia Jie Note 4	Interest of controlled	H shares	Long position	4,939,000	8.99	2.50
	corporation
Yue Shan International	Interest of controlled	H shares	Long position	4,939,000	8.99	2.50
Limited Note 5	corporation
Cao Yawen Note 5	Interest of controlled	H shares	Long position	4,939,000	8.99	2.50
	corporation

LIMITED CORPORATION MEDIA BEIJING

MANAGEMENT	2020
DISCUSSION AND ANALYSIS

LIMITED CORPORATION MEDIA BEIJING

INTERESTS OF SUBSTANTIAL SHAREHOLDERS IN SHARES AND UNDERLYING

SHARES (Continued)

Notes:

Beijing Chengshang Cultural Communication Co., Ltd. owns 7,367,000 domestic shares of the Company, approximately amounting to 3.73% of the total issued share capital (5.17% of the total issued domestic shares) of the Company. Beijing Chengshang Cultural Communication Co., Ltd. is 100% directly owned by Beijing Shouhua Asset Management Co., Ltd., which is 50% directly owned by Beijing Bailixing Investment Consulting Co., Ltd. and Puxu (Beijing) Investment Co., Ltd. respectively, among which Puxu (Beijing) Investment Co., Ltd. is 50% directly owned by Sun Shengxian and Sun Yuexian respectively, and Beijing Bailixing Investment Consulting Co., Ltd. is 50% directly owned by Quzhou Hairuiteng Information Consulting Co., Ltd. and Quzhou Zhuoqun Innovation and Cultural Co., Ltd. respectively, among which, Quzhou Hairuiteng Information Consulting Co., Ltd. is 50% directly owned by He Kangmin and Zhang Yang respectively, and Quzhou Zhuoqun Innovation and Cultural Co., Ltd. is 50% directly owned by Zhang Yang and Zhang Yiping respectively. Therefore, Zhang Yang, Zhang Yiping, He Kangmin, Quzhou Hairuiteng Information Consulting Co., Ltd., Quzhou Zhuoqun Innovation and Cultural Co., Ltd., Sun Shengxian, Sun Yuexian, Beijing Bailixing Investment Consulting Co., Ltd. and Puxu (Beijing) Investment Co., Ltd. are deemed under the SFO to have an interest in the 7,367,000 domestic shares registered in the name of Beijing Chengshang Cultural Communication Co., Ltd.
Leshi Internet Information & Technology Corp., Beijing owns 19,533,000 H shares of the Company, representing approximately 9.9% of the total issued share capital (35.58% of the total issued H shares) of the Company.
Founder Investment (HK) Ltd. owns 4,939,000 H shares of the Company, representing approximately 2.5% of the total issued share capital (8.99% of the total issued H shares) of the Company. Beijing University directly owns 100% equity interest in Beijing University New Technology Corporation, which directly owns 80% equity interest in Beijing Beida Founder Group, which in turn owns 51% equity interest in Founder Investment (HK) Ltd. Therefore Beijing University, Beijing University New Technology Corporation, Beijing Beida Founder Group and Beijing University Founder Investment Co., Ltd. are deemed under the SFO to have an interest in the 4,939,000 H shares registered in the name of Founder Investment (HK) Ltd.
Founder Investment (HK) Ltd. owns 4,939,000 H shares of the Company, representing approximately 2.5% of the total issued share capital (8.99% of the total issued H shares) of the Company. Xia Jie indirectly owns 49% equity interest in Founder Investment (HK) Ltd. through CITI CITI Ltd., which is directly 100% owned by Xia Jie. Therefore Xia Jie is deemed under the SFO to have an interest in the 4,939,000 H shares registered in the name of Founder Investment (HK) Ltd.
Yue Shan International Limited, as a trust beneficiary, owns 4,939,000 H shares of the Company, representing approximately 2.5% of the total issued share capital (8.99% of the total issued H shares) of the Company. Cao Yawen directly owns 100% equity interest in Yue Shan International Limited and is therefore deemed under the SFO to have an interest in the 4,939,000 H shares registered in the name of Founder Investment (HK) Ltd.

Information disclosed above is based on the data published on the website of the Hong Kong Stock Exchange (www.hkex.com.hk).

Save as disclosed above, to the best knowledge of the Directors, Supervisors and chief executive of the Company, as at 30 June 2020, there was no other person with interests and/or short positions in shares or underlying shares of the Company which should be recorded under Section 336 of the SFO.

2020	MANAGEMENT
	DISCUSSION AND ANALYSIS

CAPITAL EXPENDITURE

Capital expenditures, including expenditures on transportation and electronic equipment, of the Group for the First Half of 2020 was RMB82 thousand (corresponding period of 2019: RMB52 thousand). The Group expects that its capital expenditures for the second half of 2020 will be mainly comprised of the expenditures consistent with business strategies.

CONTINGENT LIABILITIES AND PLEDGE OF ASSETS

As at 30 June 2020, the Company did not have any other contingent liabilities or any pledge of assets.

FOREIGN EXCHANGE RISKS

Renminbi is the functional currency of the Company. The Company's operations conducted in the PRC are mainly settled in Renminbi. However, certain account payables are settled in foreign currency (mainly Hong Kong dollars). Therefore, the Company is exposed to the risk of fluctuations in foreign exchange rate to a certain extent. Operating cash flow or liquidity of the Group is not subject to any substantial effect from exchange rate fluctuations. The Company does not have any foreign currency hedging policy at present.

EMPLOYEES

As at 30 June 2020, the Group had a total of 308 employees (as at 30 June 2019: a total of 332 employees), and the decrease in the number of employees as compared with the corresponding period of last year was mainly due to the reasonable adjustment of the normal business needs of some subsidiaries of the Company. During the six months ended 30 June 2020, the total employees remuneration paid by the Group was approximately RMB23,355 thousand. The remuneration and benefits of the employees of the Group are determined in accordance with market rates, state policies and individual performance. The Group actively encouraged the self-development of the employees. In the First Half of 2020, the Group carried out staff trainings in respect of connected transactions, legal affairs and compliance management, etc.

LIMITED CORPORATION MEDIA BEIJING

MANAGEMENT	2020
DISCUSSION AND ANALYSIS

LIMITED CORPORATION MEDIA BEIJING

INTERESTS AND SHORT POSITIONS OF DIRECTORS, SUPERVISORS AND CHIEF EXECUTIVE IN THE SHARES, UNDERLYING SHARES OR DEBENTURES OF THE COMPANY

As at 30 June 2020, none of the Directors, Supervisors or chief executive of the Company had any interest or short position in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO), which were required to be notified to the Company and the Hong Kong Stock Exchange pursuant to Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provisions of the SFO), or which were required, pursuant to Section 352 of the SFO, to be recorded into the register referred to therein, or which were required, pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code"), to be notified to the Company and the Hong Kong Stock Exchange.

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY

During the six months ended 30 June 2020, neither of the Company nor any of its subsidiaries purchased, sold or redeemed any listed securities of the Company.

MATERIAL INVESTMENTS

During the six months ended 30 June 2020, the Group made no material investment, or any plan relating to material investment or acquisition of assets.

As at 30 June 2020, the Company's investments in Beiyang Publishing & Media Co., Ltd., Beijing Keyin Media Culture Co., Ltd. and Beijing Runxin Dingtai Investment Center (limited partnership) account for over 5% of the Group's total assets in value. For details of such significant investments, please refer to "VIII.6. Investment in other equity instruments", "VIII.7. Investment in other non-current financial assets", "X.3. Equity in investment in other equity instruments", "X.4. Equity in investment in other non-current financial assets" to the notes to the financial statements of the report.

MATERIAL ACQUISITION AND DISPOSAL OF ASSETS

During the six months ended 30 June 2020, the Group did not have other material acquisitions or disposals of assets relating to its subsidiaries, associates or joint venture companies.

AMENDMENT TO ARTICLES OF ASSOCIATION

At the annual general meeting and the shareholders' class meeting convened on 19 June 2020, the Company approved certain amendments to the articles of association of the Company. For details, please refer to announcements of the Company dated 24 April 2020, 19 June 2020 and 21 June 2020.

CHANGES AND EFFECT IN THE INDUSTRY SEGMENTS OF THE GROUP SINCE 31 DECEMBER 2019

Save as disclosed above, the industry segments, the developments within the segments and the information disclosed in the most recent published annual report of the Group have not changed materially, and did not have significant effect on the performance of each industry segment of the Group.

2020	MANAGEMENT
	DISCUSSION AND ANALYSIS

CORPORATE GOVERNANCE CODE AND CORPORATE GOVERNANCE REPORT

During the six months ended 30 June 2020, the Company had fully complied with all code provisions set out in the Corporate Governance Code and Corporate Governance Report under Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS OF LISTED ISSUERS

The Company has adopted the Model Code as set out in Appendix 10 of the Listing Rules and its amendments from time to time as its own code of conduct regarding securities transactions by Directors and Supervisors. Having made sufficient enquiries of all Directors and Supervisors of the Company, all Directors and Supervisors confirmed that they had fully complied with the standards under the Model Code during the six months ended 30 June 2020.

AUDIT COMMITTEE

Pursuant to the requirements of the Listing Rules, the Company has set up an audit committee which is responsible for the review, supervision and adjustment of the financial reporting process and internal control of the Group. Members of the audit committee comprise three independent non-executive Directors.

During the reporting period, in response to the impact of COVID-19 epidemic on the Group's operating results, the audit committee of the Board conducted discussion and review with management and the Group's auditor with reference to relevant guidance issued by Hong Kong Financial Reporting Council. The audit committee of the Board considers, management has assessed the continuing operation of the Group based on appropriate assumptions, which concludes that the Group has sufficient cash and the COVID-19 epidemic has no substantial adverse impact on the Group's continuing operation; management also monitors the impairment of non-financial assets such as intangible assets, property, equity of associates and right-of-use assets when necessary, to assess whether there is a need to perform impairment test. The auditor has confirmed the judgement of management in line with the Company's business environment, operation position and risks; management recognizes revenue strictly complied with related standards, and ensures that the fair value of assets and liabilities are measured on the basis of market; the internal control of the Group is in place, to ensure the effective measurement and management of expected credit loss of receivables.

The audit committee and the management of the Company have reviewed the accounting principles and practices adopted by the Group. In addition, the audit committee has also discussed with the Directors on matters concerning the internal control and financial reporting of the Company, including the review of the unaudited financial statements of the Group for the First Half of 2020, and has no objection thereto.

LIMITED CORPORATION MEDIA BEIJING

MANAGEMENT	2020
DISCUSSION AND ANALYSIS

LIMITED CORPORATION MEDIA BEIJING

CONNECTED TRANSACTIONS MANAGEMENT

In order to standardise and strengthen the Company's management of connected transactions, the Company has established the "Beijing Media Corporation Limited Connected Transactions Management System". The office of the Board of the Company is responsible for the management of connected transactions. Pursuant to the requirements of the relevant system of the Company, the Company is required to comply with the reporting, announcements and independent shareholders' approval requirements (if applicable) under the Listing Rules before conducting any proposed connected transactions.

INTERNAL CONTROL AND RISK MANAGEMENT

The Company engaged an internal control advisor to evaluate and make recommendations for improvement on the internal control level of the Company. The management of the Company acknowledged the internal control report issued by the internal control advisor and the internal control issues mentioned therein. The Company has or will take the following internal control rectification measures:

The Company has established a connected transaction and notifiable transaction management team (the "Management Team") to monitor and implement the approval and disclosure procedures for transactions and matters as required by the Listing Rules;
The Company has appointed a designated person as contact of departments and subsidiaries and engaged the transaction information collection special monitoring personnel, and the contact reports the latest specific transactions and major financial expenses to the transaction information collection special monitoring personnel and the Management Team on a regular basis for following-up by the Management Team in a timely manner. The major financial expenses are reviewed and approved by the management of the Company;
The Company's legal counsel in Hong Kong has provided compliance training to the Directors, Supervisors and senior management of the Company. The training includes disclosure of connected transactions, notifiable transactions and inside information. The Company has successively provided training to relevant responsible persons of each department and at the subsidiary level;
The Company has sent compliance letters to the relevant personnel of the subsidiaries on a monthly basis;
The members of the board of directors, senior executives and connected shareholders of the subsidiaries of the Company shall submit connected transaction declarations and conflict of interest statement at least semi-annually to the board of directors of the subsidiaries of the Company;
The Company will further amend and improve the written management system and make a clear division on the functions and powers of various departments in the transactions;

2020	MANAGEMENT
	DISCUSSION AND ANALYSIS

INTERNAL CONTROL AND RISK MANAGEMENT (Continued)

The Company will seek legal advice and other external expert advice on the transactions;
The Board and Management Team are responsible for implementing the relevant reward and punishment mechanism. The internal audit department and human resources department of the Company are responsible for implementing the compliance assessment and accountability mechanism of departments and subsidiaries.

DISTRIBUTABLE RESERVE

As at 30 June 2020, the Company's accumulated loss amounted to RMB502,613 thousand and the Company's surplus reserve amounted to RMB130,931 thousand.

According to the articles of association of the Company, the Company's surplus reserve can be used to recover its losses after being approved at the general meeting of the Company.

INTERIM DIVIDEND

The Board does not recommend the distribution of any interim dividend for the six months ended 30 June 2020.

CHANGES IN DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT

On 21 April 2020, Mr. Wu Tak Lung resigned as independent non-executive Director and chairman of the Audit Committee of the Company due to work reasons. For details, please refer to the announcement of the Company dated 21 April 2020.

On 28 May 2020, Ms. Yan Mengmeng resigned as the employee representative supervisor of the Company due to work reasons. Upon approval by the meeting of the employee representatives of the Company convened on the same day, Ms. Wang Sisi and Ms. Xiao Guohui were democratically elected as employee representative supervisors of the seventh session of the Supervisory Committee. Prior to this, Ms. Zhang Bo resigned as the employee representative supervisor due to personal reasons, and she shall continue to fulfill her duties as a supervisor until the date of the election of employee representative supervisors. For details, please refer to the announcement of the Company dated 28 May 2020.

At the annual general meeting of the Company convened on 19 June 2020, Mr. Chan Yee Ping, Michael was appointed as an independent non-executive director of the seventh session of the Board of the Company, and appointed as the chairman of the Audit Committee of the Company upon approval at the seventh meeting of the seventh session of the Board convened on the same day. For details, please refer to the announcement of the Company dated 19 June 2020.

On 14 August 2020, Ms. Zang Furong resigned as non-executive Director of the Company due to reach of retirement age. For details, please refer to the announcement of the Company dated 14 August 2020.

LIMITED CORPORATION MEDIA BEIJING

CONSOLIDATED BALANCE SHEET (UNAUDITED)

MEDIABEIJING
CORPORATION	Bank balances and cash
	Item
LIMITED	Current assets:
Prepayments
	Notes receivable
	Accounts receivable
	Other receivables
	Inventories
	Other current assets
	Total current assets
	Non-current assets:
	Long-term equity investment
	Investment in other equity instruments
	Other non-current financial assets
	Investment properties
	Fixed assets
	Right-of-use assets
	Intangible assets
	Goodwill
	Long-term deferred expenses
	Other non-current assets
	Total non-current assets
	Total assets

2020

As at 30 June 2020

		Unit: RMB'000

	As at	As at
	30 June	31 December
Notes	2020	2019
	227,905	217,264
	46	-
VIII.1	159,032	172,598
VIII.2	5,206	9,375
VIII.3	4,075	6,086
	12,863	12,181
VIII.4	32,761	35,212
	441,888	452,716
VIII.5	3,475	9,738
VIII.6	215,923	215,923
VIII.7	48,774	54,356
	121,646	131,832
VIII.8	1,296	2,078
	2,936	4,166
VIII.9	20,505	20,981
VIII.10	-	-
	2,722	3,655
VIII.11	-	-
	417,277	442,729
	859,165	895,445

2020As at 30 June 2020		CONSOLIDATED BALANCE SHEET
						(UNAUDITED)
									BEIJING

						Unit: RMB'000
							MEDIA
					As at	As at

	Accounts payable	VIII.13		30 June	31 December		CORPORATION
		15,905	10,306
	Item	Notes		2020	2019
	Current liabilities:
	Notes payable			8,209	5,669
	Contractual liabilities			23,640	27,405			LIMITED
	Employee benefit payables			6,358	7,689

	Tax payables			2,099	382
	Other payables	VIII.14		39,777	40,445
	Non-current liabilities due within
	one year	VIII.15		206	239
	Total current liabilities			96,194	92,135
	Non-current liabilities:
	Leased liabilities			206	322
	Deferred income tax liabilities			7,062	7,991
	Total non-current liabilities			7,268	8,313
	Total liabilities			103,462	100,448
	Shareholders' equity:
	Share capital			197,310	197,310
	Capital reserves			934,421	934,421
	Other comprehensive income	VIII.16		105,935	105,909
	Surplus reserves			130,931	130,931
	Undistributed profits			(636,932)	(599,811)
	Total equity attributable to shareholders
	of the Company			731,665	768,760
	Non-controlling interest			24,038	26,237
	Total shareholders' equity			755,703	794,997
	Total liabilities and shareholders'equity			859,165	895,445
	Net current assets			345,694	360,581
	Total assets less current liabilities			762,971	803,310

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

MEDIABEIJING	Item
CORPORATION
Total operating revenue

	Total operating costs
LIMITED	Operating costs
Tax and surcharges

	Selling expenses
	Administrative expenses
	Financial expenses
	Including: Interest expenses
	Interest income
	Add: Other income
	Investment income
	Including: Gain from investments in
	associates
	Gain on the changes in fair value
	Impairment loss of credit
	Impairment loss of assets
	Gain on disposal of asset
	Operating profit
	Add: Non-operating income
	Less: Non-operating expenses
	Total profit
	Less: Income tax expenses
	Net profit
	Net profit attributable to:
	Net profit from continuing operations
	Net profit from discontinued operations
	Shareholders of the Company
	Non-controlling shareholders

2020

For the six months ended 30 June 2020

Unit: RMB'000

For the six months ended 30 June

Notes	2020	2019
VIII.17	74,279	112,729
	86,135	122,577
VIII.17	63,889	95,074
VIII.18	945	2,832
	7,268	10,080
	15,183	14,537
VIII.19	(1,150)	54
	77	681
	1,276	658
	205	236
VIII.20	(223)	(3,259)
	(6,263)	(5,163)
VIII.21	(10,186)	18
VIII.22	(16,204)	(71,417)
VIII.23	-	(11,070)
	56	54
	(38,208)	(95,286)
VIII.24	188	672
VIII.25	88	14
	(38,108)	(94,628)
VIII.26	1,229	(247)
	(39,337)	(94,381)
	(39,337)	(94,381)
	-	-
	(37,121)	(88,453)
	(2,216)	(5,928)

2020

For the six months ended 30 June 2020

Item

Other net comprehensive income after tax

Other net comprehensive income after tax attributable to owners of the Company

Including: Other comprehensive income will not be reclassified into profit or loss

Including: Change in fair value of other equity instruments investments

Including: Other comprehensive income subsequently reclassified into profit or loss

Including: Exchange differences from retranslation of financial statements

Other net comprehensive income after tax attributable to non-controlling shareholders

Total comprehensive income

Total comprehensive income attributable to shareholders of the Company

Total comprehensive income attributable to non-controlling shareholders

Earnings per share:

Basic earnings per share (RMB)

Diluted earnings per share (RMB)

Dividends

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

		Unit: RMB'000	BEIJING
		MEDIA
	For the six months ended 30 June


Notes	2020	2019	CORPORATION
	43	2,070

VIII.16	26	1,922	LIMITED
	-	1,921
	-	1,921
	26	1
	26	1
	17	148
	(39,294)	(92,311)
	(37,095)	(86,531)
	(2,199)	(5,780)
XVII.1	(0.19)	(0.44)
XVII.1	(0.19)	(0.44)
VIII.27	-	-

CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

BEIJING
MEDIA	Item	Notes
CORPORATION	I. Cash flows from operating activities:
	Cash received from sales of goods and
	provision of service
	Tax refund received
	Other cash receipt relating to
LIMITED	operating activities
Sub-total of cash inflows from
	operating activities
	Cash paid for goods purchased and
	services received
	Cash paid to and on behalf of
	employees
	Payments of taxes and surcharges
	Other cash payments relating to
	operating activities
	Sub-total of cash outflows from
	operating activities
	Net cash flows from operating
	activities
	II. Cash flows from investing activities:
	Cash received from sales of
	investments
	Cash received from returns on
	investment
	Net cash received from disposal of
	fixed assets, intangible assets and
	other long-term assets
	Other cash receipt relating to investing
	activities
	Sub-total of cash inflows from
	investing activities
	Cash paid to acquire fixed assets,
	intangible assets and other long-
	term assets
	Cash paid on investment
	Other cash payments related to
	investing	activities

Sub-total of cash outflows from investing activities

Net cash flows from investing activities

2020

For the six months ended 30 June 2020

Unit: RMB'000

For the six months ended 30 June

20202019

69,664	81,000
-	-
4,716	13,786
74,380	94,786
46,811	63,306
23,363	26,230
2,282	4,349
13,114	17,415
85,570	111,300
(11,190)	(16,514)
5,581	8,021
7,021	3,699
65	54
1,000	358,349
13,667	370,123
-	147
-	2,200
-	281,200
-	283,547
13,667	86,576

2020 CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

For the six months ended 30 June 2020

Unit: RMB'000

For the six months ended 30 June

Item	Notes	2020	2019
III. Cash flows from financing activities:		-	-
Cash received from investors
Including: cash received from
non-controlling
shareholders		-	-
of subsidiaries
Cash received from borrowings		-	-
obtained
Other cash receipts relating to		-
financing activities		54,233

Sub-total of cash inflows from		-
financing activities		54,233

Cash payments for borrowings		-
repayment		3,927
Cash payments for distribution of
dividends or profits or interest		-
expense		134
Including: dividends, profits paid
to non-controlling
shareholders of		-	-
subsidiaries
Other cash receipts relating to		122
financing activities		53,000

Sub-total of cash outflows from
financing activities		122	57,061

Net cash flows from financing
activities		(122)	(2,828)

IV. Effect of exchange rate changes on
cash and cash equivalents		33	1
V. Net increase in cash and cash
equivalents		2,388	67,235
Add: balance of cash and cash
equivalents at the beginning		187,707
of the period		186,519
VI. Balance of cash and cash equivalents
at the end of the period	VIII.28	190,095	253,754

LIMITED CORPORATION MEDIA BEIJING

CONSOLIDATED STATEMENT OF	2020For the six
CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
	months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

Unit: RMB'000

			For the six months ended 30 June 2020
		Total equity attributable to shareholders of the Company

			Other				Non-	Total
	Share	Capital	comprehensive	Surplus	Undistributed		controlling	shareholders'
Item	capital	reserve	income	reserve	profits	Subtotal	interest	equity
				(Note)
Balance as at 31 December 2019	197,310	934,421	105,909	130,931	(599,811)	768,760	26,237	794,997

Effect of the changes in accounting	-	-	-	-	-	-	-	-
policies

Balance as at 1 January 2020	197,310	934,421	105,909	130,931	(599,811)	768,760	26,237	794,997

Net profit	-	-	-	-	(37,121)	(37,121)	(2,216)	(39,337)
Other comprehensive income	-	-	26	-	-	26	17	43
Other comprehensive income	-	-	-	-	-	-	-	-
carry-forward to retained earnings
Others	-	-	-	-	-	-	-	-

Sub-total of the changes for the	-	-		-
period	26	(37,121)	(37,095)	(2,199)	(39,294)

Balance as at 30 June 2020	197,310	934,421	105,935	130,931	(636,932)	731,665	24,038	755,703


			For the six months ended 30 June 2019
		Total equity attributable to shareholders of the Company

			Other				Non-	Total
Item	Share	Capital	comprehensive	Surplus	Undistributed		controlling	shareholders'
capital	reserve	income	reserve	profits	Subtotal	interest	equity
				(Note)
Balance as at 1 January 2019	197,310	934,421	105,434	130,931	(401,294)	966,802	44,280	1,011,082

Net profit	-	-	-	-	(88,453)	(88,453)	(5,928)	(94,381)
Other comprehensive income	-	-	1,922	-	-	1,922	148	2,070
Other comprehensive income	-	-	-	-
carry-forward to retained earnings	(1,921)	(1,921)	(148)	(2,069)
Others	-	-	-	-	46	46	4	50

Sub-total of the changes for the	-	-		-
period	1,922	(90,328)	(88,406)	(5,924)	(94,330)

Balance as at 30 June 2019	197,310	934,421	107,356	130,931	(491,622)	878,396	38,356	916,752

Note: In accordance with the People's Republic of China ("PRC") regulations and the Articles of Association of the Company, the respective subsidiaries of the Group are required to transfer 10% of the profit after tax, determined in accordance with the PRC Accounting Standards, every year to statutory surplus reserves until the balance reaches 50% of the registered share capital. Such reserves can be used to offset any losses to be incurred and to increase share capital. Except for the reduction of losses, any other usage should not result in the balance falling below 25% of the registered share capital.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

GENERAL INFORMATION
Beijing Media Corporation Limited (hereinafter referred to as the "Company") was incorporated in the PRC on 28 May 2001 as a joint stock company with limited liability under the PRC Company Law. The Company is listed on the Main Board of the Stock Exchange of Hong Kong Limited ("Hong Kong Stock Exchange").
The Company's parent company and ultimate holding company is Beijing Youth Daily Agency ("BYDA") which is a state-owned entity established in the PRC.
The addresses of the registered office and principal place of business of the Company are disclosed in the "Corporate Information" section in the annual report.
The consolidated financial statements are presented in Renminbi ("RMB") which is the functional currency of the Company as well.

The Company and its subsidiaries (hereinafter referred to as the Group ("Group")) are principally engaged in the provision of newspaper, magazine and outdoor advertising services, printing and trading of print-related materials in the PRC.

SCOPE OF CONSOLIDATED FINANCIAL STATEMENTS
The subsidiaries which are included in the scope of consolidated financial statements for the six months ended 30 June 2020 of the Group are as follows:

	Shareholding (%)
Name of units	Direct	Indirect
Beijing Beiqing Outdoor Advertisement Co., Ltd.
(Beiqing Outdoor)	100.00	-
Beiqing Network Culture Communication Co., Ltd.
(Beiqing Network)	100.00	-
BYD Logistics Company Limited (BYD Logistics)	92.84	-
Beiqing CéCi Advertising (Beijing) Limited
(Beiqing Céci)	84.69	-
Beiqing Long Teng Investment Management (Beijing)
Co., Limited (Beiqing Long Teng)	80.84	-
Beiqing Community Media Technology (Beijing) Co.,
Ltd. (Beiqing Community Media)	52.661	-
Chongqing Youth Media Company Limited
(Chongqing Media)	60.00	-
CHONG QING YOUTH (AMERICA) LLC
(Chong Qing America) (Note)	-	60.00

Note: Chong Qing America is 100% holding by the Group's 60% direct holding subsidiary Chongqing Media.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
1. Basis of preparation
  The Group's financial statements for the six months ended 30 June 2020 have been prepared on a going concern basis and based on the actual transactions and matters incurred, in accordance with requirement such as Accounting Standards for Business Enterprises - Basic Standard and specific accounting standards ("PRC Accounting Standard") issued by the Ministry of Finance of the People's Republic of China (the "Ministry of Finance"), as well as applicable disclosure requirements under the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange and the Hong Kong Companies Ordinance; and the accounting policies and estimates as stated in Note V "Significant accounting policies and accounting estimates and basis of preparation of consolidated financial statements".
2. Going concern
  The Company is able to continue as a going concern for at least the next 12 months from the end of the reporting period, and there is no material issue affecting the ability of on-going operation.

IV. STATEMENT OF COMPLIANCE OF ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

The Group's financial statements have been prepared in conformity with the "PRC Accounting Standards", and present truly and completely the consolidated financial position as at 30 June 2020 and its consolidated operating results, consolidated cash flows and other relevant information for the six months ended 30 June 2020.

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
1. Accounting period
  The accounting period of the Group is from 1 January to 31 December of each calendar year.
  The period of this interim financial report is from 1 January 2020 to 30 June 2020.
2. Reporting currency
  The reporting currency of the Group is RMB. The financial statements of the Group are expressed in RMB.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Basis of preparation and principle of measurement
  The Group's financial statements have been prepared on an accrual basis. Except for financial assets held for trading and investment properties which are measured at fair value, the financial statements are prepared under the historical cost convention.
2. Business combination
3. 1. Business combination involving entities under common control
    In a business combination involving enterprises under common control, if the acquirer pays for the business combination in cash, by transferring of non- cash assets or assuming liabilities, net assets in the ultimate controlling party's consolidated financial statements are measured at their carrying amounts of the acquiree at the acquisition date. If the acquirer issues equity instruments for the business combination, the acquirer measures the share capital by the par value of the shares issued. The difference between the original investment costs and the carrying amounts (or the total par value of shares issued) will be adjusted to the capital reserves. If the capital reserves is insufficient to absorb the difference, the remaining amount shall be deducted from retained earnings.
  2. Business combination involving entities not under common control
    In a business combination involving enterprises not under common control, the combination costs are the aggregate of the fair values of the assets paid, the liabilities incurred or assumed and the equity instruments issued by the acquirer in exchange for control over the acquiree at the acquisition date. At the acquisition date, the acquired assets, liabilities and contingent liabilities of the acquiree that meet the recognition criteria are measured at their fair value. The Company shall recognize the difference of the combination costs in excess of its interest portion in the fair value of the net identifiable assets acquired from the acquiree as goodwill. The Company shall recognize the difference of the combination costs less than its interest portion in the fair value of the net identifiable assets acquired from the acquiree in the non- operating income for current period after reassessment.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. Basis of preparation of consolidated financial statement
1. Determination of the scope of consolidation
  All subsidiaries (including individual entities under the control of the Company) are included in the consolidated financial statements of the Group, including enterprises controlled by the Company, the divisible parts of the invested entities as well as structured entities.
2. Uniform accounting policies, balance sheet date and accounting period If the subsidiaries adopt different accounting policies or accounting period compared with those of the Company, the Company shall make necessary adjustments on the subsidiaries' financial statements according to its accounting policies or accounting period when the consolidated financial statements are prepared.
3. The elimination in the preparation of consolidated financial statements The consolidated financial statements are prepared based on the individual balance sheet of the Company and its subsidiaries, after elimination of the transactions incurred among the Company and the subsidiaries. The portion of a subsidiary's equity that is not attributable to the Company is treated as "minority interests" and presented in the consolidated balance sheet within equity. The equity investment of the Company held by one subsidiary shall be treated as the Company's treasury shares and a deduction of the shareholder's equity which is presented as "less: treasury shares" in the consolidated balance sheet within equity.
4. The accounting treatment for obtaining subsidiaries through a business combination
  Where a subsidiary or business has been acquired through a business combination involving enterprises under common control in the reporting period, the obtained subsidiary or business is deemed to be included in the consolidated financial statements from the date they are controlled by the ultimate controlling party. Their assets, liabilities, operating results and cash flows are included in the consolidated financial statements from the beginning of the accounting period in which the acquisition occurred. Where a subsidiary or business has been acquired through a business combination not involving enterprises under common control, their individual financial statements are adjusted based on the fair value of identifiable net assets at the acquisition date when preparing the consolidated financial statements.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Joint arrangement classification and joint operations accounting treatments
1. The classification of joint arrangement
  Joint arrangements are classified as joint operations or joint ventures. A joint arrangement will be classified as joint operation when the joint arrangement achieves not through an individual entity. Individual entity is an entity with individual identifiable finance structure, including single legal entity and entity unqualified as legal entity but qualified as lawful entity. A joint arrangement is usually classified as joint venture when the joint arrangement achieves through incorporating an individual entity. When changes arising from relevant events or environment cause changes of the cooperative parties' rights and obligations in the joint arrangements, the cooperative parties shall reassess the classification of the joint arrangements.
2. The accounting treatment of joint operations
  The party participating in joint operations shall recognize the following items relating to its interests in the joint operations and account for them in accordance with related requirements of Accounting Standards for Business Enterprises: Its solely-held assets and solely-assumed liabilities, and its share of any assets and liabilities held jointly; its revenue from the sale of its share of the output arising from the joint operation; its share of the revenue from the sale of the output by the joint operation; its own expenses; and its share of any expenses incurred jointly.
  The other parties involving in joint operations without common control power shall account for their investments referring to the treatment method of joint operation participants if they are entitled to relevant assets and undertake relevant liabilities of the joint operations, otherwise, they shall account for their investments according to related requirements of Accounting Standards for Business Enterprises.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Joint arrangement classification and joint operations accounting treatments (Continued)
2. 1. The accounting treatment of joint ventures
    The parties participating in a joint venture account for its investment in accordance with Accounting Standards for Business Enterprises No. 2 - Long-term equity investment. And the other parties involving in joint ventures without common control power shall account for their investments according to their influence extent on the joint ventures.
3. Cash and cash equivalents
  The cash in the Group's statement of cash flows is cash on hand and deposits that can be readily drawn on demand. Cash equivalents in the cash flow statement represent short-term (3 months or less) and highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value.
4. Foreign currency
5. 1. Foreign currency transactions
    The Group records foreign currency transactions in RMB for accounting purpose using the spot exchange rate prevailing on the date when the transactions occur. As at the balance sheet date, monetary items denominated in foreign currency are translated to RMB by adopting the prevailing exchange rate on that date. Foreign exchange difference between the prevailing exchange rate on that date and the prevailing exchange rate on initial recognition or on the previous balance sheet date are recognized in profit or loss for the current period, except the foreign exchange arising from specific loan denominated in foreign currency qualified as capital expenditure and included in the cost of related assets. Non-monetary items denominated in foreign currency that are measured at historical cost are still translated at amount in functional currency exchanged at the prevailing exchange rate at the transaction date. Non-monetary items denominated in foreign currency that are measured at fair value are translated using the exchange rate at the date when fair value was determined and the difference between the translated functional currency amount and the prior translated amount on initial recognition or on the previous balance sheet date are recorded in profit or loss for the current period or other comprehensive income.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Foreign currency (Continued)
1. The translation of financial statements denominated in foreign currency If the Company's controlled subsidiaries, joint ventures and associates etc. adopt different reporting currency, their financial statements denominated in foreign currency shall be translated to financial statements in RMB when preparing consolidated financial statements. The assets and liabilities are translated to RMB amounts using the spot exchange rate at the balance sheet date. Items of the equity, except for "undistributable profits", are translated at the spot exchange rate at the dates on which such items occurred. The revenue and expenditures in the statement of income are translated using the spot exchange rate at the transaction date. The difference arising from foreign currency financial statements translation is presented in other comprehensive income at the consolidated balance sheet within equity. Items of the statement of cash flows are determined by systemic method and translated using the spot exchange rate when they incurred. Effect arising from changes of exchange rates on cash and cash equivalents is presented separately in the statement of cash flows. When disposing of foreign operations, exchange differences of foreign currency financial statements attributable to the foreign operations are transferred to profit or loss for the current period entirely or in proportion with the disposal portion of the foreign operations.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Financial instruments
1. Classification and reclassification of financial instruments
  A financial instrument is a contract that forms the financial assets of a party and forms the financial liabilities or equity instruments of other parties.
2. 1. Financial assets
    The Company will classify its financial assets as financial assets carried at amortised cost if both of the following conditions are met: ①
    Where the Company's business model for managing financial assets is aimed at collecting contractual cash flows; ② the contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only the payment of the principal and the interest based on the outstanding principal amount.
    The Company will classify its financial assets as financial assets at fair
    value through other comprehensive income if both of the following conditions are met: ① Where the Company's business model for
    managing financial assets is aimed at both collecting contractual cash flows and selling the financial assets; ② the contractual terms of the financial assets stipulate that the cash flows generated on a specific date are only the payment of the principal and interest based on the outstanding principal amount.
    For investments in non-trading equity instruments, the Company may, at the time of initial recognition, irrevocably designate it as a financial asset at fair value through other comprehensive income. The designation is based on a single investment and the relevant investment is in line with the definition of the equity instrument from the issuer's perspective.
    For those financial assets other than financial assets measured at amortised cost and financial assets at fair value through other comprehensive income, the Company classifies it as financial assets at fair value through profit or loss. At initial recognition, if accounting mismatch can be eliminated or reduced, the Company may irrevocably designate financial assets as financial assets at fair value through profit or loss.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Financial instruments (Continued)
1. Classification and reclassification of financial instruments (Continued)
2. 1. Financial assets (Continued)
    When the Company changes the business model for managing financial assets, all relevant financial assets as affected are reclassified on the first day of the first reporting period after the business model changes, and the reclassification are applied prospectively from the reclassification date. The Company does not retroactively adjust any previously recognized gains, losses (including impairment losses or gains) or interest.
  2. Financial liabilities
    On initial recognition, financial liabilities are classified as financial liabilities at fair value through profit or loss; financial liabilities at amortised cost. All financial liabilities are not reclassified.
3. Measurement of financial instruments
  On initial recognition, the Company's financial instruments are measured at fair value. For financial assets and financial liabilities at fair value through profit or loss, the related transaction expense is directly recognized in profit or loss for the current period. For financial assets or financial liabilities of other classes, the related transaction expense is included in the amount of initial recognition. Accounts receivable or notes receivable arising from sales of goods or rendering services, without significant financing component, are initially recognised based on the transaction price expected to be entitled by the Company. Subsequent measurement of financial instruments depends on their classifications.
4. 1. Financial Assets
  2. - Financial assets at amortised cost
      After initial recognition, such financial assets are measured at amortised cost using the effective interest method. Gains or losses arising from financial assets at amortised cost that are not parts of any hedging relationships are included in profit or loss in the period which they incurred when derecognised, reclassified, amortised or recognised the impairment under the effective interest method.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Financial instruments (Continued)
1. Measurement of financial instruments (Continued)
2. 1. Financial Assets (Continued)
  2. - Financial assets at fair value through profit or loss
      After initial recognition, gain or loss (including interest and dividend income) arisen from subsequent measurement of the financial assets (excluding the financial assets are parts of the hedging relationships) at fair value is included in profit and loss in the period which they incurred.

Debt instruments investment at fair value through other comprehensive income
After initial recognition, such financial assets are subsequently measured at fair value. Interest, impairment loss or gain and exchange gain and loss calculated using the effective interest method is included in profit or loss in the period which they incurred, and other gains or losses are recognised in other comprehensive income. When derecognised, the accumulated gains or losses previously recognised in other comprehensive income are transferred out from other comprehensive income and included in profit or loss in the period which they incurred.

- Investment in non-trading equity instruments designated at fair value through other comprehensive income
  After initial recognition, such financial assets are subsequently measured at fair value. Except that dividend income received (excluding the parts recovered as investment costs) is included in profit or loss, and other relevant gains or losses are included in other comprehensive income, and would not be transferred to profit or loss in the period.
Financial Liabilities
① Financial liabilities at fair value through profit or loss
Such financial liabilities include financial liabilities for trading purpose (including derivatives that are financial liabilities) and financial liabilities designated as at fair value through profit or loss. After initial recognition, the financial liabilities are subsequently measured at fair value. Except for those involving the hedge accounting, the gains or losses (including interest expenses) arising from changes in fair value of financial liabilities for trading purpose are included in profit or loss in the period which they incurred.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Financial instruments (Continued)
1. Measurement of financial instruments (Continued)
2. 1. Financial Liabilities (Continued)
  2. - Financial liabilities at fair value through profit or loss (Continued) The changes in fair value of financial liabilities designated at fair value through profit or loss that are attributable to changes of that financial liabilities' credit risk to be recognised in other comprehensive income, while other changes in fair value are included in profit or loss in the period. If the inclusion of the impact of changes in credit risk of such financial liabilities causes or increases the accounting mismatch of profit or loss, the Company will include all gains or losses of such financial liabilities in profit or loss in the period.

- Financial liabilities at amortised cost
  After initial recognition, such financial liabilities are measured at amortised cost by using the effective interest method.
Recognition method of financial instruments' fair value
For financial assets or financial liabilities in active markets, the Company uses the quoted prices in active markets to determine their fair value. If there is no active market, the Company uses valuation techniques to determine their fair value. The valuation techniques mainly include market approach, income approach and cost approach. In limited cases, if there is insufficient information used to determine the fair value, or if the range of possible estimated fair values is broad, and the cost represents the best estimate of the fair value in such a range, then such costs can represent the proper estimate of the fair value in that range. The Company determines whether the cost represents the fair value based on all information in relation to the results and operations of the investees available since the date of initial recognition.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Financial instruments (Continued)
1. Recognition and measurement of transfer of financial assets and financial liabilities
  Financial assets
  Financial assets of the Company are derecognised where: ① the contractual rights to receive cash flows from such financial assets have suspended; ②
  the Company has transferred substantially all the risks and rewards associated with ownership of such financial assets; ③ the Company has neither transferred nor retained substantially all the risks and rewards associated with ownership of such financial assets, and has not retained control of such financial assets.
  In the case that the Company has neither transferred nor retained substantially all the rewards associated with ownership of such financial assets and has not retained control of such financial assets, the Company will continue to recognise such financial assets according to the extent of transfer of such financial assets, and will recognise relevant liabilities accordingly.
  When the transfer of financial assets as a whole qualifies for derecognition,
  the Company will include the difference of the following two amounts in profit or loss in the period: ① the carrying amount of the transferring financial asset on the derecognition date; ② the sum of the consideration obtained from transferring the financial asset, and the amount of derecognised part in the accumulated changed amount of fair value directly included in other comprehensive income (the related transferring financial assets are the financial assets at fair value through other comprehensive income).

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Financial instruments (Continued)
1. Recognition and measurement of transfer of financial assets and financial liabilities (Continued)
  Financial assets (Continued)
  When a partial transfer of financial assets qualifies for derecognition, the carrying amount of the transferring financial asset is allocated between the
  part that subject to and the part not subject to derecognition, in proportion to the respective fair values of those parts. The difference between: ① the carrying amount of the part derecognised; and ② the sum of the consideration obtained from the part derecognised and the cumulative changed amount of fair value for the part derecognized (the related transferring financial assets are classified as the financial assets at fair value through other comprehensive income) is included in profit or loss in the period.
  When derecognising the investment in non-trading equity instruments at fair value through other comprehensive income designated by the Company, the accumulated gains or losses previously included in other comprehensive income are transferred out from other comprehensive income and included in retained earnings.
  Financial liabilities
  Once the present obligation of financial liabilities (or parts of them) has been lifted, financial liabilities (or parts of them) of the Group has been derecognised.
  The difference between the carrying amount of financial liabilities (or parts of them) and consideration paid (including transferred non-cash assets or liabilities) is recognised in profit or loss, when financial liabilities (or parts of them) are derecognised.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. Determination and accounting treatment methods of expected credit loss Based on the expected credit loss, the Company made the impairment accounting for financial assets at amortised cost (including notes receivable and accounts receivable, other receivables), debt investments at fair value through other comprehensive income, rental receivable and contractual assets, and recognised the provision for such losses.
The Company assesses whether the credit risk of relevant financial instruments since its initial recognition is significantly increased on each balance sheet date, and divides the process of credit impairment of financial instruments into three stages, with different accounting treatment methods for impairment of financial instruments in different stages: (1) first stage, where the credit risk of financial instruments is not significantly increased since its initial recognition, the Company measures the provision for loss based on the expected credit loss of such financial instruments in the next 12 months, and calculates the interest income based on its book balance (that is, without deduction for credit allowance) and effective interest; (2) second stage, where the credit risk of financial instruments is significantly increased since its initial recognition but no impairment of credits existed, the Company measures the provision for loss based on the expected credit loss of such financial instruments in the lifetime, and calculates the interest income based on its book balance and effective interest; (3) third stage, where impairment of credits existed since its initial recognition, the Company measures the provision for loss based on the expected credit loss of such financial instruments in the lifetime, and calculates the interest income based on its amortised cost (book balance minus provision made for impairment) and effective interest.
1. Method of measuring loss allowance for financial instruments with lower credit risk
  For financial instruments with lower credit risk as at the balance sheet date, the Company may not make a comparison with the credit risk at the time of initial recognition, but directly make the assumption that the credit risk of the instrument has not increased significantly since initial recognition.
  The credit risk on a financial instrument is considered low if the financial instrument has a low risk of default, the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. Determination and accounting treatment methods of expected credit loss (Continued)
1. Method of measuring loss allowance for accounts receivable, contractual assets and rental receivable
2. 1. Accounts receivable and contractual assets without containing significant financing elements. For accounts receivable or contractual assets without containing significant financing elements arising from the transactions regulated under the Accounting Standards for Business Enterprises No. 14 - Revenue, the Company adopts a simplification approach which always measures the provision for loss based on the expected credit loss in the lifetime.
    Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly on the basis of a single financial asset or combination of financial assets. According to the credit risk characteristics, the Company divides the notes receivable and accounts receivable into several combinations, and calculates the expected credit losses on a combined basis. The basis for determining the combination is as follows:

LIMITED CORPORATION MEDIA BEIJING

Accounts receivable group 1: Accounts receivable group 2:


Notes receivable group	1	:
Notes receivable group	2	:
Contractual assets group	1	:
Contractual assets group	2	:

Aging portfolio customers Related party customers Bank acceptance bill Trade acceptance bill Third-party customers Related party customers

For accounts receivable designated to a group, the Company makes the comparison of trade receivables overdue days and full lifetime expected credit losses rate to calculate the expected credit losses by taking into account the historical credit losses experience, and the existing and forecast of future economic conditions. For bills receivable and contract assets designated to a combination, the Company applies exposure at default and lifetime expected credit losses rate to calculate the expected credit losses by taking into account the historical credit losses experience and the existing and forecast of future economic conditions.

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. Determination and accounting treatment methods of expected credit loss (Continued)
1. Method of measuring loss allowance for accounts receivable, contractual assets and rental receivable (Continued)
2. 1. Accounts receivable, contractual assets and rental receivable containing significant financing elements
    For accounts receivable or contractual assets containing significant financing elements and lease receivable regulated by the Accounting Standards for Business Enterprises No. 21 - Lease, the Company measures loss provision based on general approach, i.e. "three stages" model.
3. Method of measuring loss provisions for other financial assets
  For financial assets other than those mentioned above, e.g. debt investment, other debt investment, other receivables, long-term receivables other than rental receivable, etc., the Company measures loss provisions with the general method, i.e. the "three-stages" model.
  The Company divides other receivables into several groups based on the nature of the payment, and calculates the expected credit loss on the basis of the group. The basis for determining the group is as follows:
  Other receivables group 1: Margins, deposits, petty cash, etc.
  Other receivables group 2: Related party payments
  Other receivables group 3: other current payments
4. Related party payments
  There is a special relationship between the related parties and the Company (such as intergroup related parties, jointly controlled entities and associates) where the difference between the present value of future cash flows and their carrying amount is expected to be minimal, the accounts receivable are generally not made for provision of bad debt. However, if there is concrete evidence indicating that a related party who is a debtor of the company the registration of which is revoked, bankrupt, insolvent, or in serious shortage of cash flows and has no intention to undergo debt restructuring in respect of such receivables or the receivables cannot be otherwise collected, provision for bad debts should be made for the part that is expected to be possibly collected. If the entire amount due from a related party is not expected to be recovered, bad debt provision for the entire amount may be made.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Determination and accounting treatment methods of expected credit loss (Continued)
2. 1. Margins, deposits and petty cash and other payments
    The accounts receivable include items such as rental deposits, purchase deposits, petty cash and amount subsequently received. Generally, no bad debt provision is made for such accounts receivable. However, if there is objective evidence indicating that impairment existed in such kind of accounts receivable, the Company will make individual provision for bad debts and write-down of its carrying amount to recoverable amount.
  2. Accounting treatment methods of expected credit losses
    In order to reflect the changes in the credit risk of financial instruments since its initial recognition, the Company re-measures the expected credit loss on each balance sheet date, and the increase or reversal of the loss provision resulting therefrom shall be deemed as impairment loss or gain to be included in profit and loss in the current period, and based on the types of financial instruments, offsetting against the carrying amount of the financial asset shown on the balance sheet or included in estimated liabilities (loans commitment or financial guarantee contracts) or included in other comprehensive income (investment in equity at fair value through other comprehensive income).
3. Inventory
  Inventories mainly include goods in stock.
  The Group maintains a perpetual inventory system. Inventories are recorded at actual cost of purchase when received. Actual cost is calculated using weighted average method when the inventories are consumed or issued. Low value consumables are amortised in full when received for use.
  At the end of the period, inventories are stated at the lower of costs and net realisable value. Where the inventories are expected not to be recoverable as they become damaged, partially or wholly obsolete or whose selling price is lower than its cost, provision for inventory impairment is made for the excess of its cost and net realisable value.
  Net realisable value of the available-for-sale finished goods are determined by its estimated selling price less estimated selling expenses and related taxes.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Contractual assets and contractual liabilities
2. 1. Contractual assets
    A contractual asset is the Company's right to receive consideration in exchange for goods or services that the Company has transferred to a customer when that right is conditioned on something other than the passage of time and an impairment of a contractual asset is measured using ECL model. See note V.10 for details of the Company's method of measuring expected credit losses on contractual assets and accounting treatment thereof.
  2. Contractual liabilities
    The obligation of the Group to transfer goods or to provide services for consideration received or to be received is presented as contractual liabilities.
3. Long-termequity investment
4. 1. Determination of initial investment cost
    Long-term equity investment acquired through a business combination: For a business combination involving enterprises under common control, the initial investment cost of a long-term equity investment is the acquirer's share of the carrying amount of the owners' equity in the acquiree at the acquisition date. For a business combination not involving enterprises under common control, the initial investment cost of a long-term equity investment is the cost of acquisition determined at the date of acquisition. For a long-term equity investment acquired in cash, the initial investment cost is the amount of cash paid. For a long-term equity investment acquired by issuing equity securities, the initial investment cost is the fair value of the equity securities issued. For a long-term equity investment acquired by debt restructuring, the initial investment cost is determined according to related requirements of Accounting Standards for Business Enterprises No.12 - Debt Restructuring. For a long-term equity investment acquired by exchange of non-cash assets, the initial investment cost shall be determined according to related accounting standards.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. Long-term equity investment (Continued)
1. Subsequent measurement and recognition of profit or loss
  Where the Company is able to exercise control over an investee, the long- term equity investment is accounted for using the cost method. Where the Company has investment in associates and joint ventures, the long-term equity investment is accounted for using the equity method. Where portion of the long-term equity investment in an associate is indirectly held through venture capital organizations, mutual funds, trust companies or similar entities including investment-linked insurance funds, regardless whether these entities can exercise significant influence on the investments, the Company shall measure the indirectly held portion at fair value through profit or loss and accounted for the remaining portion using the equity method according to Accounting Standards for Business Enterprises No. 22 - Financial Instrument Recognition and Measurement.
2. Basis for recognition of joint control or significant influence over an investee
  Joint control of an investee is that the decision of activities that can significantly affect the arrangement's return must require the unanimous consent of the parties sharing control, including sale and purchase of goods or services, financial assets management, purchase and disposal of assets, research and development activity and financing activities etc. The Company holding of 20%-50% voting capital of the investee presents it can exercise significant influence over the investee. The Company usually can exercise significant influence over the investee even its voting capital less than 20% if it can meet one of the following situations: a) Appointing representatives in the board of directors or similar governing body of the investee; b) Participating in the strategy and policy decision process; c) Delegating management personnel; d) The investee relying on the Company's technique or technical material; e) Significant transactions occur between the Company and the investee.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. Investment properties
The investment properties of the Group are buildings leased for rental income.
Investment property is measured at cost. The cost for investment properties purchased from outsiders includes purchase price, related taxes and other expenses directly related to the assets. The cost of investment properties constructed by the Group includes the required construction expenses incurred to bring the assets to the condition of intended use.
Investment properties of the Group are subsequently measured using fair value model. Gain or loss on changes in fair value of investment properties is recognized directly in profit or loss for the current period.
The fair value of the investment properties of the Group are determined by the management of the Group on an open market basis by reference to properties of the same location and similar usage.
Where an investment property is changed for owner-occupied purpose, it is transferred to a fixed asset or intangible asset at the date of the change. Where the owner-occupied property is changed for earning rentals or for capital appreciation, the fixed asset or intangible asset is transferred to an investment property at the date of the change. On conversion, the carrying amount immediate before conversion is taken as the cost of the asset.
An investment property is derecognized on disposal or retirement when it is expected that there shall be no economic benefit through disposal. Where the investment properties are sold, transferred, retired or damaged, the proceeds from disposal after deducting the carrying amount and related taxes are recognized in profit or loss for the current period.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
15. Fixed assets
Fixed assets of the Group are tangible assets that are held for the purpose of producing goods, rending services, leasing or operation and management. The useful lives of fixed assets are more than one year.
Fixed assets consist of buildings, plant and machinery, motor vehicles, office equipment and others. The cost for fixed asset is measured at cost at the time when it is acquired. The cost of fixed asset purchased from outsiders includes purchase prices, import tax and other related taxes and other expenses incurred to bring the assets to the condition of intended use. The cost of fixed asset constructed by the Group includes the required expenses incurred to bring the assets to the condition of intended use. The fixed asset acquired by an investor is measured at the agreed considerations as specified in the investment contracts or agreements, or the fair value where the agreed consideration as specified in the contracts or agreements is not justified. The fixed asset acquired under a finance lease is measured at the lower of their fair values and the present value of the minimum lease payment at the date of inception of the leases.
Subsequent expenditures incurred for a fixed asset, such as maintenance expenses, renovation and improvement expenses, are included in the cost of fixed asset when they meet the recognition criteria of a fixed asset, and the carrying amount of the replaced parts is derecognized. The subsequent expenditures incurred for a fixed asset are recognized in profit or loss for the current period in which they are incurred when they do not meet the criteria of a fixed asset.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
15. Fixed assets (Continued)
Depreciation is provided for all fixed assets, except for the assets that are fully depreciated and remain in use. Fixed assets are depreciated using the straight-line method to measure the cost or expenses of the assets for the current period based on the usage of the assets. The useful lives, estimated residual values and depreciation rate of each type of the fixed asset of the Group are as follows:

		Estimated
		residual value	Annual
Category	Useful Life	rate	depreciation
	(years)	(%)	(%)
Buildings	20	0.00	5.00
Plant and Machinery	10	0.00	10.00
Motor vehicles	5	0.00	20.00
Office equipment	5	0.00	20.00
Electronic equipment	3	0.00	33.00

The Group re-assesses the estimated useful life and estimated net residual value of a fixed asset and the depreciation method at the end of each financial year. Any changes will be dealt with as changes on accounting estimates.

A fixed asset is derecognized on disposal or it is expected that there shall be no economic benefit arising from using or after disposal. Where the fixed assets are sold, transferred, retired or damaged, the income received after disposal after deducting the carrying amount and related taxes are recognized in profit or loss for the current period.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
16. Intangible assets
Intangible assets of the Group, including land use rights, operation rights and software, are recognized at actual cost at the time of acquisition. The actual cost of the purchased intangible assets is measured at the actual payment and other related expenses. The actual cost of intangible asset acquired by an investor is measured at the agreed considerations as specified in the investment contracts or agreements. In case where the agreed consideration of the contracts or agreements is not justified, the assets are measured at fair value.
Land use rights are evenly amortised over their lease terms from the date of transfer. Other intangible assets are evenly amortised on the basis of the shortest of their estimated useful lives, the number of beneficial years as stipulated by contract and by law.
Amortisation amount is included in the cost of related assets and profit or loss for the current period based on the beneficiary of the assets.
The estimated useful lives and amortization method of intangible assets with finite useful lives are re-assessed at the end of each financial year. Any changes will be dealt with as changes on accounting estimates. The estimated useful lives of intangible assets with indefinite infinite useful lives are reviewed in each accounting period. Where there is objective evidence to prove that the useful life of an intangible asset is finite, the Company shall estimate the useful life and amortise that intangible asset over its estimated useful life.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
17. Impairment of long-term assets
At each balance sheet date, if there are impairment indications for the long-term assets including long-term equity investments, investment property subsequently measured at cost model, fixed assets, construction in progress, productive biological assets measured at cost, oil and gas assets, intangible assets, goodwill, etc., the Company shall perform impairment test. If the outcome of impairment test indicates the recoverable amount of the asset is lower than its carrying amount, the Company shall recognize the provision for impairment based on the amount of the shortfall.
The recoverable amount of an asset is determined by the higher of the net amount after deducting the disposal costs from the asset's fair value and the present value of the asset's estimated future cash flow. The provision for impairment of asset is estimated and recognized on individual basis. If it is not possible to estimate the recoverable amount of the individual asset, the Company shall determine the recoverable amount of the asset group to which the asset belongs. The asset group is the minimum portfolio of assets that could generate cash inflow independently.
Impairment tests are conducted for goodwill presented in the financial statements separately at least at the end of every accounting year regardless whether there are impairment indications or not. The carrying amount of goodwill arising from business combinations is allocated to relevant asset groups or asset group portfolio. The related impairment loss shall be recognized if the impairment test indicates the recoverable amount of the asset groups or asset group portfolio embodied the goodwill is lower than their carrying amounts. The amount of impairment loss shall firstly be deducted from the carrying amount of goodwill embodied in the asset groups or asset group portfolio, then be deducted from the carrying amounts of other assets based on the proportions of their carrying amounts in the asset group or asset group portfolio.
The impairment losses of assets will not be reversed in subsequent periods once they are recognized.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Goodwill
  Goodwill is the amount at the acquisition date or purchasing date, of the equity investment cost or cost of business combination not involving enterprises under common control, that exceeds the acquirer's interest in the fair value of the investees' or acquiree's identifiable net assets.
  Goodwill relating to subsidiaries is presented in consolidated financial statements as a separate item. Goodwill relating to associates and jointly controlled entities is included in the carrying amount of the long-term equity investment.
2. Long-termdeferred expenses
  Long-term deferred expenses of the Group are expenditures such as property renovation cost, which have incurred but shall be undertaken in more than 1 year of amortization period (not including 1 year) of the current and future periods. They are amortized evenly over the estimated benefit period. If one long-term deferred expense can't benefit the Company in the subsequent periods, the remaining balance of the long-term deferred expense shall be recognized as expense in profit or loss for the current period.
3. Employee benefits
4. 1. Short-timeemployee benefits
    In the accounting period in which employees have rendered services, the Company recognizes the employee benefits as liability, and charges to profit or loss for the current period, or includes in the cost of relevant assets in accordance with other accounting standards. Welfare benefit are charged to profit or loss for the current period or included in the cost of relevant assets when incurred. Welfare benefit in non-monetary forms is measured at fair value. In the accounting period in which employees have rendered services, the Company recognizes the social security contributions as liability according to regulations such as medical insurance, work injury insurance and maternity insurance as well as housing funds, and charges to profit or loss for the current period or includes in the cost of relevant assets.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
20. Employee benefits (Continued)
1. Post-employmentbenefits
  During the accounting period in which employees provide the service, the Company calculates the defined contribution plans payable according to the basis and percentage required by local government, recognized as the liability and charges to profit and loss for current period or includes in the cost of related assets. The Company attributes the obligation incurred by defined benefits plans using the projected accumulated benefit unit credit method to periods in which the employees rendered services and charges the obligation to profit and loss for the current period or includes in the cost of related assets.
2. Termination benefits
  Termination benefits provided by the Company to employees are recognized as an employee benefit liability and charged to profit or loss for the current period at the earlier of the following dates: The Company cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a curtailment proposal; When the Company recognizes costs or expenses related to the restructuring that involves the payment of termination benefits.
3. Other long-term employee benefits
  If other long-term employee benefits provided by the Company to the employees meet the conditions for classifying as a defined contributions plan, those benefits are accounted for in accordance with the above requirements relating to defined contribution plan. Besides, net obligations or net assets of other long-term employee benefits are recognized and measured in accordance with the above requirements relating to defined benefits plan.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
21. Revenue
The Group has fulfilled its performance obligations of the contract that the revenue is recognised based on the transaction price of such performance obligation when the customers take control of the relevant goods or services. Obtaining the right to control the relevant goods means that it is able to dominate the use of the goods and derive almost all economic benefits therefrom. The performance obligations of the contract refer to the undertaking in the contract that the Company can clearly distinguish between the goods transferred by the Company to the customer. Transaction price means to the consideration that the Group is expected to receive a consideration due to the transfer of goods or services to the customer, but it does not include payments received on behalf of third parties and amounts that the Group expects to return to the customer.
Whether performance obligations satisfied over time or at a point in time is based on the terms of contracts and related law regulations. If the performance obligations satisfied over time, the Company will recognise revenue via contract performance schedule, otherwise the Company will recognise revenue at a point in time when the relevant assets control rights are obtained by customers.
The business revenues of the Group are mainly generated from sale of advertising spaces and incomes from printing, trading of print-related materials and distribution of newspapers and magazines and consultation service and technical service and rental income. The principles of revenue recognition are as follows:
1. Revenue from sale of advertising spaces
  Revenue from advertising spaces is generally recognized pro rata over the period in which the advertisement is published (net of VAT). Sales of advertising spaces, with award credits generating from customers, are accounted for as multiple element revenue transactions and the fair value of the consideration received or receivable is allocated between the advertising spaces sold and the award credits granted. The consideration allocated to the award credits is measured by reference to their fair value, which is the fair value of the award credits exchangeable of advertising space. Such consideration is not recognized as revenue at the time of the commencement of the sale transaction, but is deferred and recognized as revenue when such award credits are redeemed and the Group's obligations have been fulfilled.
2. Revenue from printing
  Revenue from printing, net of VAT is recognized when the service is provided.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Revenue (Continued)
2. 1. Revenue from trading of print-related materials and distribution of newspapers and magazines
    Revenue from trading of print-related materials and distribution of newspapers and magazines, net of VAT, is recognized when the customer has obtained control of relevant goods or services, which generally coincides with the time when the goods are delivered to customers and the title has passed.
  2. Revenue from consultation service
    Consultation service income is recognized when the services are provided.
  3. Revenue from technical service
    Revenue from technical service is recognized when the services are provided.
  4. Revenue from rental income
    Rental income is recognized in accordance with the Group's accounting policy for lease (see Note V.25).
3. Contract cost
  Contract cost includes the incremental cost happened for obtaining the contract and the contract performance cost. The incremental cost happened for obtaining the contract (the "contract obtaining cost") refers to the cost which will not occur if the contract is not obtained. Where the cost is expected to be recovered, the Company considers it as the contract obtaining cost and recognises it as an asset.
  Where the cost happened for performing the contract does not fall into the scope of inventories and other accounting standards for business enterprises and meets the following conditions at the same time, the Company considers it as the contract performance cost and recognises it as an asset:
4. 1. The cost is directly related to a current contract or a contract expected to be obtained, including direct labor, direct materials, manufacturing fees (or similar fees), the cost set to be assumed by users and other cost arising merely from the contract;
  2. The cost increased the resources of the Company to be used for performing the performance obligations in the future;
  3. The cost is expected to be recovered.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Contract cost (Continued)
  The assets with the contract obtaining cost recognised and the assets with the contract performance cost recognised (hereafter referred to as the "contract cost related assets") are amortized on the same basis as the recognition of revenue on commodities related to the asset and are included in the current profit or loss. The amortization period for the assets from the incremental cost on obtaining the contract shall be no more than one year and shall be included in the current profit or loss after happened.
  When the carrying value of the contract cost-related assets is higher than the difference between the following two items, the impairment provisions for the excess shall be made and shall be recognised as losses on assets impairment:
2. 1. The remaining consideration expected to be obtained from transfer of commodities related to the asset;
  2. The cost estimated to be happened for the transfer of such commodities.
3. Government grants
4. 1. Category and accounting treatment of government grants
    Government grants are the monetary assets and non-monetary assets received from the government without consideration (excluding the capital invested by the government as the owner). As monetary assets, government grants are measured based on the actual received or receivable amounts. As non-monetary assets, government grants are measured based on their fair value; if the fair value cannot be estimated reliably, it will be measured based on nominal amount.
    Government grants related to daily activities are included in other income according to the substance of the economic activities. Government grants unrelated to daily activities are included in non-operating income and expenditure.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
23. Government grants (Continued)
1. Category and accounting treatment of government grants (Continued) The government grants which are clearly defined in the government documents to be used for acquisition, construction or other project that forms a long-termasset are recognized as asset-relatedgovernment grants. Regarding the government grant that is not clearly defined in the government documents and can form long-termassets, the part of government grant which can be referred to the value of the assets is classified as government grant related to assets and the remaining part is government grant related to income. For the government grant that is difficult to distinguish, the entire government grant is classified as government grant related to income. Any government grants related to assets are recognized as deferred income, the amount of which shall be recorded in the current profit or loss in installments with a reasonable and systematic method over the useful lives of relevant assets.
  The government grants other than those related to assets are recognized as government grants related to income. The income-related government grants used to compensate relevant expenses or losses to be incurred by the enterprise in subsequent periods are recognized as deferred income and recorded in profit and loss for the current period when such expenses are recognized while those used to compensate relevant expenses or losses that have been incurred by the enterprise are recorded directly in profit or loss for the current period.
  Where the Company obtains an interest subsidy for policy-related preferential loans, the government either appropriates an interest subsidy to the lending bank, allowing the latter to provide loans at a preferential interest rate to the Company who shall recognize the loan amount received as the book entry value of such loans, and calculate the relevant loan expenses according to the loan principal and the preferential interest rate; or the government directly appropriates an interest subsidy to the Company who shall use the interest subsidy to offset relevant loan expenses.
2. The recognition time point for government grants
  The governmental grants would be recognized upon satisfaction of the conditions attached and such amount of grants is sure to be received. Specifically, the governmental grants measured at the amount receivable will be recognized when there is unambiguous evidence suggesting the conformance to related conditions as provided in financial support policies and financial support fund is expected to be received at the end of financial year. Other government grants other than those measured at the amount receivable will be recognized at the actual time of receiving such grants.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
24. Deferred tax asset and deferred tax liability
Temporary differences arising from the difference between the carrying amount of an asset or liability (asset or liability not recognized in balance sheet but the tax base is ascertained by the current tax laws and regulation, the tax base is the temporary difference) and its tax base are recognized as deferred tax calculating by the effective tax rate in the expected period to receive the asset or discharge the liability.
Deferred tax assets are recognized for deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized and should be recognized for deductible loss or tax reduction that could be carried forward in subsequent periods to the extent that it is probable that taxable income will be available against which deductible loss or tax reduction can be utilized. If it is probable that sufficient taxable profits will not be available in future periods to allow the benefit of the deferred tax asset to be utilized, the carrying amount of the deferred tax asset is reduced.
The taxable temporary differences associated with investments in subsidiaries and associates shall be recognized deferred tax liability; except the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The deductible temporary differences associated with investments in subsidiaries, associates, the corresponding deferred tax asset is recognized when it is probable that the temporary difference will reverse in the foreseeable future and it is probable that taxable profits will be available in the future against which the temporary difference can be utilized.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
25. Lease
1. The accounting treatment for lessee
  At the beginning of the lease term, the Company recognizes the right-of-use assets and lease liabilities for leases other than short-term leases and leases of low-value assets, and depreciation and interest expenses are recognised during the lease term.
  The company uses the straight-line method in each period of the lease term to include lease payments for short-term leases and leases of low-value assets into current expenses.
2. 1. Right-of-useassets
    The right-of-use assets refer to the right of the lessee to use the leased asset during the lease term. On the commencement date of the
    lease term, right-of-use assets are initially measured at cost. The cost includes: ① the amount of the initial measurement of the lease liability; ② the lease payment made on or before the commencement date of the lease term, less any lease incentive received if any; ③ the initial direct costs incurred by the lessee; ④ an estimate of costs to be incurred by the lessee in dismantling and removing the leased assets, restoring the site on which it is located or restoring the leased asset to the condition required by the terms and conditions of the lease.
    The depreciation for right-of-use assets of the Company is categorized and provided using the average life method. For those leased assets which can be reasonably determined that their ownership will be acquired at the expiration of the lease term, depreciation will be provided within the estimated remaining useful life of the leased assets; for those which cannot be reasonably determined that their ownership will be acquired at the expiration of the lease term, depreciation will be provided within the shorter of the lease term and the remaining useful life of the leased assets.
    The Company determines whether the right-of-use assets have been impaired and are accounted for in accordance with the relevant provisions under the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
25. Lease (Continued)
1. The accounting treatment for lessee (Continued)
2. 1. Lease liabilities
    Lease liabilities are initially measured based on the present value of
    outstanding lease payment on the commencement date of the lease term. Lease payment include: ① fixed payments (including in-substance fixed payments), less any relevant lease incentives if any; ② variable lease payments subject to an index or a rate; ③ estimated payables
    based on the residual value of the guarantee provided by the lessee; ④ the exercise price under the purchase option if the lessee is reasonably certain to exercise; ⑤ payments for exercising the option of termination of a lease if the lease term reflects the lessee exercising the option to terminate.

The Company uses the inherent interest rate of the lease as the discount rate; if the inherent interest rate of the lease cannot be determined, the incremental borrowing interest rate of the Company should be used as the discount rate. The Company calculates the interest expenses of lease liabilities for each period over the lease term based on the fixed periodic rate, and recognises them in financial expenses. Such periodic rate is the discount rate or revised discount rate adopted by the Company.

The variable lease payments not included in the measurement of lease liabilities are recognized in the current profit and loss when they actually occur.

If there are any changes in the Company's evaluation of the lease renewal option, the lease termination option or the purchase option, the lease liabilities shall be remeasured at the present value calculated based on the changed lease payments and the revised discount rate, and the book value of the right-of-use assets shall be adjusted accordingly. If there are any changes in actual lease payments, the estimated payables of guaranteed residual value or the variable lease payments subject to an index or a rate, the lease liabilities are remeasured at the changed lease payments and the present value calculated at the original discount rate, and the book value of the right-of-use assets shall be adjusted accordingly.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Lease (Continued)
2. 1. Accounting treatment of leased assets
  2. 1. Accounting treatment of operating leases
      During each period of the lease term, the Company uses the straight- line method to recognise the lease payments from operating leases as rental income. The initial direct costs incurred by the Company in relation to the operating leases are capitalised, and are accounted for in current income based on the same recognition basis as the rental income during the lease term.
    2. Accounting treatment of finance leases
      At the commencement date of lease term, the Company recognizes the difference between the sum of finance lease receivables and the unguaranteed residual value, and the present value thereof as unrealized finance income, and recognizes the same as rental income over the periods when rent is received in the future. The Company's initial direct costs associated with rental transactions shall be included in the initial measurement of the finance lease receivables.
3. Held-for-saleand discontinued operations
  Non-current assets or disposal groups are classified as held-for-sale assets when all the following conditions are met: a) the asset (or disposal group) must be available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups); b) the sale must be highly probable, i.e. the Company has signed an irrevocable transfer agreement with the transferee and the transfer is expected to be completed within one year. If related regulations require pre-approval for the sale, the sale transaction has been approved.
  When non-current asset (or disposal group) classified as held for sale is initially measured or re-measured at each balance sheet date, if the book value of the non-current asset (or disposal group) is higher than its fair value, the difference will be deducted from the book value and recognized as impairment provision of held for sale in the profit and loss for current period.
  Non-current asset (or disposal group) classified as held-for-sale asset will be presented as held-for-sale assets and the liabilities in the disposal group will be presented as held-for-sale liabilities in the balance sheet.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Held-for-saleand discontinued operations (Continued)
  A discontinued operation is a clearly distinguished component of an entity, that either has been disposed of, or is classified as held for sale, and meets any of the following criteria:
2. 1. represents a separate major line of business or geographical area of operations;
  2. is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations;
  3. is a subsidiary acquired exclusively with a view to resale.
3. Accounting for income tax
  Income tax is accounted for using liability method. Income tax expenses represent the sum of current tax and deferred tax. Current tax and deferred tax relating to the transactions and matters that are directly recorded in shareholders' equity are dealt with in shareholders' equity. Deferred tax arising from business combination is adjusted to the carrying value of goodwill. Expenses or income of all other current tax and deferred tax are recognized in the profit or loss for the period.
  The current income tax payable is the amount of tax payable to taxation authority by the enterprises in respect of the transactions and matters of the current period calculated according to the taxation regulations. The deferred income tax is the difference between the balances of the deferred income tax assets and deferred income tax liabilities that should be recognized using the balance sheet liabilities approach at the end of the period and their balances originally recognized.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Segment information
  Operating segments of the Group are identified on the basis of internal organization structure, management requirements and internal reporting policies. The reporting segments are determined on the basis of operating segments. An operating segment represents a component of the Group that satisfied the following criteria simultaneously: (1) the component engages in business activities from which it may earn revenues and incur expenses; (2) whose operating results are regularly reviewed by the Company's management to make decisions on resources to be allocated to the segments and assess its performance; (3) financial information of the segments such as financial position, operating results and cash flow is available to the Company.
  The price of intra-segment transactions is determined on market rates. Expenses, other than those which are unable to allocate reasonably, are allocated between segments in proportion with their revenue.
2. Key accounting estimates and judgments
  In the application of the Group's accounting policies, the Directors of the Company are required to make judgments, estimates and assumptions on the carrying amounts of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
  The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized for the period in which the estimate is revised if the revision affects only that period or for the current and future periods if the revision affects both periods.
  The followings are the key assumptions on the future, and other key sources of estimation uncertainty at the end of the reporting period, that are probable to cause a material adjustment to the carrying amounts of assets and liabilities of the next financial year.
3. 1. Building ownership
    Certain buildings of the Group have not been granted with Building Ownership Certificates by relevant government authorities. In the opinion of the directors of the Company, the absence of Building Ownership Certificates of these buildings will not impair the value of the buildings and investment properties of the Group.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
29. Key accounting estimates and judgments (Continued)
1. Depreciation of fixed assets
  Fixed assets are depreciated on a straight-line basis over their estimated useful lives and estimated residual values. The determination of the useful lives and residual values involve the estimates of the management. The Group assesses annually the residual value and useful life of the fixed asset and if the expectation differs from the original estimate, such a difference may affect the depreciation charge in the interim of the year and in the future period.
2. Fair value of investment properties
  Investment properties are measured at fair value estimated by the management. The management will determine the fair value on an open market basis by reference to properties of the same location and condition. Should there are any changes in assumptions due to the change in market condition, the fair value of the investment properties will be adjusted accordingly.
3. Allowance for bad debts of account receivables and other receivables The Company assesses expected credit loss of account receivables by using the probability of default of account receivables as the weight factor with to reasonable and supportable information of past events, current reference conditions, and forecast for future economic conditions. When determining the expected credit loss rate, the Company refers to the experience of historical credit loss, and makes adjustments considering the current situation and forward-lookinginformation, which is measured with indicators including the risk of economic downturn, external market environment, industrial risks and customers.
4. Impairment of goodwill
  Determining whether goodwill is impaired requires an estimation of the value-in-use of the cash generating units to which goodwill has been allocated. The value-in-use calculation requires the Group to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate the present value. Where the actual future cash flows are less than expected, a material impairment loss may arise.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)
29. Key accounting estimates and judgments (Continued)
1. Impairment of interests in jointly controlled entities and associates The Group tests annually whether the interests in jointly controlled entities and associates have suffered any impairment in accordance with the Group's accounting policy. The entire carrying amount of the investment (including goodwill) is tested as a single asset by comparing the difference of its recoverable amount (higher of value in use and fair value less cost to sell) with its carrying amount. The values in use calculation requires the use of estimates and judgments including estimation of the future cash flows, determination of applicable discount rate, estimation of exchange rate and future industry trends and market condition and makes other assumptions. Changes in these estimates and assumptions could affect the determination of recoverable amount.
2. Impairment loss for inventories
  The management of the Group reviews the aging of the inventories at the end of each reporting period, and makes allowance for obsolete and slow- moving inventory items identified that are no longer suitable for use or saleable in the market. The management estimates the net realizable value for such items based primarily on the latest invoice prices and current market condition. The Group carries out an inventory review on a product basis at the end of each reporting period and makes allowance for obsolete items. Where the actual future cash flows are less than expected, a material impairment loss may arise.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VI. CHANGE IN ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND CORRECTION OF ERRORS OF PRIOR PERIODS

Changes in accounting policies and their effect
There were no changes in accounting policies during the period.
Change in accounting estimates and their effect
There were no changes in accounting estimates during the period.
Correction of errors of prior periods and their effect
No correction of accounting errors of prior periods was made during the period.

VII. TAXES

1. Main taxes categories and tax rates

Tax category	Tax base	Tax rate
Value added tax	The VAT payable shall be the	13%、9%、6%
	balance of the Output tax for
	the period after deducting the
	Input, tax for the period, and
	Output VAT is calculated
	based on 13%、9%、6%
Cultural construction fee	Taxable revenue from	3%
	advertising
Urban maintenance and	Turnover tax payable	7%
construction tax
Education surcharge	Turnover tax payable	3%
Local education surcharge	Turnover tax payable	2%
Enterprise income tax	Taxable income	25%

2. Significant tax incentives and approval documents

According to the requirements of the "Notice on the Continual Implementation of Certain Taxation Policies relating to the Transformation of Operational Culture Entities into Enterprises in the Cultural Regime Reform issued by the Ministry of

Finance and the State Administration of Taxation and the Central Publicity Department" 《( 財政部稅務總局中央宣傳部關於繼續實施文化體制改革中經營性文化事業單位轉制為企業若干稅收政策的通知》) (Cai Shui [2019] No. 16), enterprises which completed the transformation prior to 31 December 2018 may continue to be exempted from a five-yearenterprise income tax since 1 January 2019.

According to Article 3 of the "Announcement of the Ministry of Finance and the

State Administration of Taxation on Supporting Policies for Films and Other Industries" 《( 財政部稅務總局關於電影等行業稅費支持政策的公告》) (Announcement No. 25, 2020 of the Ministry of Finance and the State Administration of Taxation), the cultural construction fee will be exempted from 1 January 2020 to 31 December 2020.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS

1. Accounts receivable

	As at	As at
	30 June	31 December
Item	2020	2019
Accounts receivable	425,989	425,129
Less: Provision for bad debts	266,957	252,531

Net accounts receivable	159,032	172,598

The following is an aging analysis of accounts receivable presented based on the invoice date (net of provision for bad debts):

	As at	As at
	30 June	31 December
Item	2020	2019
0-90 days	17,200	18,529
91-180 days	4,966	7,558
181-365 days	10,391	6,682
1-2 years	15,879	23,576
Over 2 years	110,596	116,253

Total	159,032	172,598

The top five accounts receivable as at 30 June 2020 represented 43.71% of the total accounts receivable.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2. Prepayments

	As at	As at
	30 June	31 December
Item	2020	2019
Prepayments	5,206	9,375
Less: Provision for bad debts	-	-

Net prepayments	5,206	9,375
The following is an aging analysis of prepayments:

	As at	As at
	30 June	31 December
Item	2020	2019
Within 1 year	5,184	9,353
Over 1 year	22	22

Total	5,206	9,375

The top five prepayments as at 30 June 2020 represented 94.55% of the total prepayments.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3. Other receivables

	As at	As at
	30 June	31 December
Item	2020	2019
Interest receivable	-	-
Dividends receivable	-	-
Other receivables	202,809	203,042
Less: Provision for bad debts	198,734	196,956

Net other receivables	4,075	6,086

The following is an aging analysis of other receivables (net of provision for bad debts):

		As at	As at
		30 June	31 December
Item	2020	2019
Within 1 year	1,014	1,608
1-2	years	956	764
2-3	years	1,995	2,075
3-4	years	11	1,503
Over 4 years	99	136

Total

4,075

6,086

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3. Other receivables (Continued)

Other receivables classified by nature

	As at	As at
	30 June	31 December
Nature	2020	2019
Related party current account	5,213	5,217
External unit current (Note 1)	122,500	123,996
Consideration of equity transfer
(Note 2)	72,320	72,320
Deposit and margin	380	406
Reserve funds	2,390	1,103
Others	6	-

Total	202,809	203,042

Note 1: The above external unit current includes RMB107,391 thousand receivable from Beiqing Transmedia Co., Ltd. As at 30 June 2020, the provision of impairment was made in full.

Note 2: The above consideration of equity transfer represents RMB72,320 thousand receivable from Beijing Trans-media Co., Ltd. As at 30 June 2020, the provision of impairment was made in full.

The top five other receivables as at 30 June 2020 represented 95.86% of the total other receivables.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4. Other current assets

	As at	As at
	30 June	31 December
Item	2020	2019
Investment of film projects (Note)	3,990	5,971
VAT utilizable	28,771	28,828
Prepaid income tax	-	413

Total	32,761	35,212

Note: Investment of film projects including:

The Company had entered into an investment agreement in accordance with the proportion of investment with Beijing Forest Movies Culture Media Co., Ltd., pursuant to which the Company will invest RMB4,990 thousand (representing 10% of total investment cost of the TV series) for the production of internet TV series "Setting Sail" 《( 啟航》). The Company will enjoy the benefits in accordance with the proportion of investment based on the "Earnings Settlement Report" and will not participate in the production process. As at 30 June 2020, the Company's balance of the investment in the TV series amounted to RMB3,990 thousand.

5. Long-term equity investment

Types for long-term equity investments

	As at	As at
	30 June	31 December
Type	2020	2019
Investments in associates -
under equity method	15,092	21,355
Less: provision for impairment for
investments in associates	11,617	11,617

Total	3,475	9,738

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5. Long-term equity investment (Continued)

Types for long-term equity investments (Continued)

					Changes in the period
											Balance of
				Investment							impairment
	Balance			gain or loss	Other		Declaration			Balance	provision
	as at			recognized	comprehensive	Changes	of cash			as at	as at
	1 January	Additional	Decrease in	under equity	income	in other	dividend or	Provision for		30 June	30 June
Investee	2020	investment	investment	method	adjustment	equity	profit	impairment	Others	2020	2020
Beijing Leisure Trend Advertising
Company Limited
("Leisure Trend")	-	-	-	-	-	-	-	-	-	-	-
Beijing Beiqing Shengda
Automobile Service
Company Limited
("Beiqing Shengda")	-	-	-	-	-	-	-	-	-	-	-
Beijing Beisheng United
Insurance Agency Co., Ltd.
("Beisheng United")	1,842	-	-	224	-	-	-	-	-	2,066	-
BY Times Consulting Co., Ltd.
("BY Times")	-	-	-	-	-	-	-	-	-	-	-
Beijing Beiqing Top Advertising
Limited ("Beiqing Top")	-	-	-	-	-	-	-	-	-	-	-
Hebei Jujingcai E-commerce
Company Limited
("Hebei Jujingcai")	-	-	-	-	-	-	-	-	-	-	-
Beijing International Advertising
Media Group Co., Limited
("International Advertising")	6,480	-	-	(6,480)	-	-	-	-	-	-	10,669
Chongqing Soyang Internet
Technology Co., Ltd.
("Chongqing Soyang")	-	-	-	-	-	-	-	-	-	-	948
Beijing Shangyou Network
Technology Co., Ltd.
("Shangyou Network")	1,416	-	-	(7)	-	-	-	-	-	1,409	-

LIMITED CORPORATION MEDIA BEIJING

Total	9,738	-	-	(6,263)	-	-	-	- -	3,475 11,617

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5. Long-term equity investment (Continued)

Investments in associates

	As at	As at
	30 June	31 December
Item	2020	2019
Unlisted investments, at cost	74,144	74,144
Share of post-acquisition profit	(59,602)	(53,339)
Share of other comprehensive income
of associates	550	550
Provision for impairment	11,617	11,617

Total	3,475	9,738

As at 30 June 2020, for details of the associates of the Group, please refer to the "X. DISCLOSURE OF INTERESTS IN OTHER ENTITIES" of this note.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6. Investment in other equity instruments

Investment in other equity instruments

				Dividend
				income
		As at	As at	recognized
	Investment	30 June	31 December	for the
Item	cost	2020	2019	period
Beijing Keyin Media
Culture Co., Ltd.	6,560	45,061	45,061	-
Beiyang Publishing &
Media Co., Ltd.	103,000	168,017	168,017	-
Beijing Youth Daily
Newspaper
Internet
Communication
Technology
Co., Ltd.	500	2,845	2,845	-

Total	110,060	215,923	215,923	-

Investment in other equity instruments is analyzed as follows:

	As at	As at
	30 June	31 December
Type	2020	2019

LIMITED CORPORATION MEDIA BEIJING

Unlisted equity investments, PRC	215,923	215,923

Total	215,923	215,923

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7. Investment in other non-current financial assets

				Investment
				income
		As at	As at	recognized
	Investment	30 June	31 December	for the
Item	cost	2020	2019	period
Beijing Runxin Dingtai
Investment Center
(limited partnership)	38,209	46,057	51,639	7,009
Suzhou Huaying Culture
Industry Investment
Enterprise (limited
partnership)	2,797	2,717	2,717	-

Total	41,006	48,774	54,356	7,009

8. Fixed assets

For the six months ended 30 June 2020, the fixed assets of the Group increased by RMB82 thousand (corresponding period of 2019: RMB52 thousand).

For the six months ended 30 June 2020, the Group disposed of fixed assets with net carrying amount of RMB506 thousand (corresponding period of 2019: RMB1,514 thousand), resulting in net gain on disposal of fixed assets of RMB56 thousand (corresponding period of 2019: net gain of RMB0 thousand).

For the six months ended 30 June 2020, the depreciation of fixed assets recognized in the income statement is RMB855 thousand (corresponding period of 2019: RMB977 thousand).

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Intangible assets
For the six months ended 30 June 2020, the intangible assets of the Group increased by RMB0 thousand (corresponding period of 2019: increased by RMB0 thousand).
For the six months ended 30 June 2020, the amortization of intangible assets recognized in the income statement is RMB476 thousand (corresponding period of 2019: RMB686 thousand).
Goodwill

		As at	As at
		30 June	31 December
	Item	2020	2019
	Goodwill arising from the acquisition of
	Beiqing CéCi	47,377	47,377
	Less: provision for impairment	47,377	47,377

	Total	-	-

11. Other non-current assets


		As at	As at
		30 June	31 December
	Item	2020	2019
	Film project prepaid expenses (Note)	24,000	24,000

	Less: provision for impairment	24,000	24,000

	Total	-	-

Note: Film project prepaid expenses related to the Company's participation in film and television production of "Oriental King of Soccer" 《( 東方球王》). The project settlement period exceeds one year. The Company entered into agreements with Daqianmen (Beijing) Media Co. Ltd., pursuant to which the Company participated in the production of TV series "Oriental King of Soccer". As at 30 June 2020, the balances of prepaid expenses related to the remaining television projects "Oriental King of Soccer" were RMB24,000 thousand. "Oriental King of Soccer" has not been released.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

12. Breakdown of impairment provision of assets

			Increase during		Decrease during
			the period			the period
	As at			Other			Other	As at
	1 January			transfer-			transfer-	30 June
Item	2020	Provision	in	Reversal	out	2020
Provision for bad debts	449,487	16,204	-		-	-	465,691
Provision for inventory
impairment	5,114		-	-		-	43	5,071
Provision for impairment
of investments in
associate	11,617		-	-		-	-	11,617
Provision for impairment
of intangible assets	8,460		-	-		-	-	8,460
Provision for impairment
of goodwill	47,377		-	-		-	-	47,377
Provision for impairment
of other non-current
assets	24,000		-	-		-	-	24,000

Total	546,055	16,204	-		-	43	562,216

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

13. Accounts payable

	As at	As at
	30 June	31 December
Item	2020	2019
Accounts payable	15,905	10,306

Total	15,905	10,306

The following is an aging analysis of accounts payable as at 30 June 2020 presented based on the invoice date:

	As at	As at
	30 June	31 December
Item	2020	2019
0-90 days	10,490	5,310
91-180 days	559	731
181-365 days	934	277
Over one year	3,922	3,988

LIMITED CORPORATION MEDIA BEIJING

Total

15,905

10,306

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

14. Other payables

	As at	As at
	30 June	31 December
Nature	2020	2019
Current account	32,287	32,913
Margin and deposit	5,631	5,817
Collection and payment for other persons	678	264
Others	1,181	1,451

Total	39,777	40,445

15. Non-current liabilities due within one year

	As at	As at
	30 June	31 December
Item	2020	2019

Lease liabilities due within one year	206	239

Total	206	239

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

16. Other comprehensive income

			Less: other
			comprehensive
			income		Amount
			subsequently		after tax
		Amount	reclassified		attributable
	As at	before	into profit or		to the	As at
	1 January	income tax	loss in current	Less: income	parent	30 June
Item	2020	for the year	period	tax expenses	company	2020
1. Other comprehensive income will not be
reclassified into profit or loss	105,277	-	-	-	-	105,277
Including: fair value of other investments of
equity instruments	105,277	-	-	-	-	105,277
2. Other comprehensive income subsequently
reclassified into profit or loss	632	43	-	-	26	658
Including: Items attributable to investees under
equity method subsequently
reclassified to profit or loss	550	-	-	-	-	550
Including: Exchange differences from
retranslation of
financial statement	82	43	-	-	26	108

Total other comprehensive income	105,909	43	-	-	26	105,935

17. Total operating income, operating costs

	For the six months
	ended 30 June
Item	2020	2019
Principal operating income	69,748	101,478
Other operating income	4,531	11,251

Total operating income	74,279	112,729
Principal operating costs	62,933	93,563
Other operating costs	956	1,511

Total operating costs	63,889	95,074

Gross Profit	10,390	17,655

Total operating income (which is the turnover of the Group) represents the net amounts received and receivable from sales of advertising layout and goods and rendering of services by the Group to outside customers, less trade discounts during the period.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

17. Total operating income, operating costs (Continued)

Principal operations - by business segment

For the six months ended 30 June

Item	2020	2019
	Operating	Operating	Operating	Operating
	revenue	costs	revenue	costs
Advertising	39,517	33,549	44,434	40,343
Printing	1,434	1,252	2,438	2,028
Trading of print-
related materials	28,735	28,064	52,974	50,116
Distribution	62	68	268	542
Others	-	-	1,364	534

Total	69,748	62,933	101,478	93,563

The sum of operating revenue from the top five customers is RMB23,756 thousand representing 34.06% of principal operating revenue for the six months ended 30 June 2020.
Other operating revenue includes revenue from property rental income of RMB4,255 thousand.

18. Tax and Surcharges

	For the six months
	ended 30 June
Item	2020	2019
Cultural Construction Fee	-	1,919
Urban maintenance and construction tax	78	75
Education surcharge	33	32
Local Education surcharge	5	21
Property tax	762	657
Others	67	128

Total	945	2,832

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

19. Financial expenses

		For the six months
		ended 30 June
	Item	2020	2019
	Interest expenses	77	681
	Less: Interest income	1,276	658
	Add: Other expenses	49	31

	Total	(1,150)	54
20. Gain on investment

		For the six months
		ended 30 June
	Item	2020	2019
	Share of profit of associates	(6,263)	(5,163)
	Investment income received from the
	disposal of financial assets at fair value
	through profit or loss for the period	7,009	-
	Other investment income	(969)	1,904

LIMITED CORPORATION MEDIA BEIJING

Total	(223)	(3,259)

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

21. Gain/(loss) on the changes in fair value

		For the six months
		ended 30 June
	Item	2020		2019
	Gain on changes in fair value of
	investment properties	(10,186)		18

	Total	(10,186)		18

22. Credit impairment losses

		For the six months
		ended 30 June
	Item	2020		2019
	Loss from bad debts	(16,204)		(71,417)

	Total	(16,204)		(71,417)

23. Impairment loss of assets

		For the six months
		ended 30 June
	Item	2020		2019
	Provision for impairment of inventories	-	(2,430)
	Provision for impairment of intangible
	assets	-	(8,640)

Total	-	(11,070)

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

24. Non-operating income

			For the six months
			ended 30 June
	Item	2020		2019
	Current accounts not payable	179		596
	Others	9		76

	Total	188		672
25. Non-operating expenses

			For the six months
			ended 30 June
	Item	2020		2019
	Compensation and late payment charges	42		14
	Others	46		-

	Total	88		14

26. Income tax expenses

(1) Income tax expenses
			For the six months
			ended 30 June
		Item	2020		2019
		Current income tax expenses	2,158		322
		Deferred income tax expenses	(929)		(569)

LIMITED CORPORATION MEDIA BEIJING

Total	1,229	(247)

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

VIII. EXPLANATORY NOTES TO MAJOR ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

26. Income tax expenses (Continued)

Current income tax expenses

	For the six months
	ended 30 June
Item	2020	2019
Current income tax - PRC	1,963	253
Under-provision in prior years - PRC	195	69

Total	2,158	322

No provisions for Hong Kong profits tax of the Group during the period, as there was no profit generated from Hong Kong.

Dividends
The directors do not recommend the payment of an interim dividend for the six months ended 30 June 2020 (2019: nil).
Cash and cash equivalents

	As at	As at
	30 June	31 December
Item	2020	2019
Bank balances and cash	227,905	217,264
Less: Restricted bank deposits	37,810	29,557

Balance of cash and cash equivalents
at the end of the period	190,095	187,707

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

IX. CHANGES IN CONSOLIDATED SCOPE

Business combination
During the period, the Group had no changes in consolidated scope as a result of business combination.
Disposal of subsidiaries
During the period, the Group had no changes in consolidated scope as a result of disposal of subsidiaries.
Changes in consolidated scope for other reasons
During the period, the Group had no changes in consolidated scope as a result of other reasons.

X. DISCLOSURE OF INTERESTS IN OTHER ENTITIES

Interests in subsidiaries
1. Constitutions for enterprise group

	Principal
	place of	Place of	Business	Registered	Shareholding
Name of subsidiaries	business	registration	nature	capital	percentage (%)	Acquisition method
					Direct	Indirect
BYD Logistics Company	Beijing,	Beijing,	Logistics and	30,000	92.84	-	Establishment
Limited	the PRC	the PRC	warehousing
Beiqing CéCi Advertising	Beijing,	Beijing,	Advertising	80,000	84.69	-	Business combination
(Beijing) Limited	the PRC	the PRC	services				involving entities not
							under common
							control
Beijing Beiqing Outdoor	Beijing,	Beijing,	Advertising	10,000	100.00	-	Business combination
Advertisement Co., Ltd.	the PRC	the PRC	services				involving entities under
							common control
Beiqing Network Culture	Beijing,	Beijing,	Advertising	51,000	100.00	-	Establishment
Communication	the PRC	the PRC	services
Co., Ltd.
Beiqing Long Teng	Beijing,	Beijing,	Investment	50,000	80.84	-	Establishment
Investment Management	the PRC	the PRC	management
(Beijing) Co., Limited
Chongqing Youth Media	Chongqing,	Chongqing,	Newspaper	30,000	60.00	-	Establishment
Company Limited	the PRC	the PRC	distribution,
			advertising
			services
Beiqing Community Media	Beijing,	Beijing,	Advertising	30,025	52.661	-	Establishment
Technology (Beijing)	the PRC	the PRC	services
Co., Ltd.
CHONG QING YOUTH	California,	California,	Travel rental	8,800	-	60.00	Establishment
	the United	the United
	States	States

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

DISCLOSURE OF INTERESTS IN OTHER ENTITIES (Continued)
1. Interests in subsidiaries (Continued)
1. Significant non-wholly-owned subsidiaries

		Gain or loss	Other	Balance of
		for the	comprehensive	non-
	Percentage	period	income	controlling
	of non-	attributable	attributable to	shareholders
	controlling	to non-	non-controlling	as at
	shareholders	controlling	shareholders	30 June
Name of subsidiaries	(%)	shareholders	for the period	2020
BYD Logistics Company
Limited	7.16	(55)	-	3,679
Beiqing Community Media
Technology (Beijing)
Co., Ltd.	47.339	(334)	-	18,997

Major financial information of significant non-wholly-owned subsidiaries

			As at 30 June 2020				As at 31 December 2019
		Non-			Non-			Non-			Non-
	Current	current	Total	Current	current	Total	Current	current	Total	Current	current	Total
Name of subsidiaries	assets	assets	assets	liabilities	liabilities	liabilities	assets	assets	assets	liabilities	liabilities	liabilities

BYD Logistics Company
Limited	106,265	214	106,479	55,075	-	55,075	105,037	400	105,437	53,266	-	53,266
Beiqing Community Media
Technology (Beijing)
Co., Ltd.	57,268	1,418	58,686	18,557	-	18,557	57,651	1,760	59,411	18,532	44	18,576

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

DISCLOSURE OF INTERESTS IN OTHER ENTITIES (Continued)
1. Interests in subsidiaries (Continued)
1. Major financial information of significant non-wholly-owned subsidiaries (Continued)

	For the six months ended 30 June 2020	For the six months ended 30 June 2019
			Total	Cash flows			Total	Cash flows
	Operating		comprehensive from operating	Operating		comprehensive	from operating
Name of subsidiaries	revenue	Net profit	income	activities	revenue	Net profit	income	activities
BYD Logistics Company
Limited	35,959	(766)	(766)	2,154	75,384	(1,073)	(1,073)	1,923
Beiqing Community
Media Technology
(Beijing) Co., Ltd.	21,362	(705)	(705)	(5,417)	23,681	747	747	441

2. Interests in associates

Constitutions for associates

		Primary
	Place of	operation		Shareholding	Voting	Business
Name of associates	registration	place	Business nature	percentage (%)	percentage	structure
				Direct	Indirect	(%)
Beijing Leisure Trend Advertising	Beijing	Beijing	Design, production,	49.04	-	49.04	Limited liability
Company Limited			agency advertising				company
Beijing Beiqing Shengda	Beijing	Beijing	Car decoration services,	20.00	-	20.00	Limited liability
Automobile Service			market research,				company
Company Limited			marketing planning
Beijing Beisheng United	Beijing	Beijing	Car insurance agency	20.00	-	20.00	Limited liability
Insurance Agency			services				company
Co., Limited
BY Time Consulting Co., Ltd.	Beijing	Beijing	Economic information	30.00	-	30.00	Limited liability
			consulting,				company
			organizing cultural
			activities
Beijing Beiqing Top Advertising	Beijing	Beijing	Design, production,	41.60	-	41.60	Limited liability
Limited			agency advertising				company
Hebei Jujingcai E-commerce	Shijiazhuang	Shijiazhuang	Primary agricultural	44.50	-	44.50	Limited liability
Company Limited			products and other				company
			goods
Chongqing Soyang Internet	Chongqing	Chongqing	Network E-Commerce	-	35.00	35.00	Limited liability
Technology Co., Ltd.							company
Beijing Shangyou Network	Beijing	Beijing	Technical service,	-	30.00	30.00	Limited liability
Technology Co., Ltd.			technical				company
			development
Beijing International Advertising	Beijing	Beijing	Design, production,	14.99	-	14.99	Limited liability
Media Group Co., Ltd.			agency advertising				company

Note: The shareholding of Beijing International Advertising Media Group Co., Ltd. held by the Company is 14.99%, and the Company has appointed a director to participate in the decision-making of the production and operation of such company and has significant influence over such company.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

DISCLOSURE OF INTERESTS IN OTHER ENTITIES (Continued)
2. Interests in associates (Continued)
1. Constitutions for associates (Continued)
  The accounting method for associates adopted by the Group is equity method.
2. Major financial information for associates

	As at	As at
	30 June 2020/ 31 December 2019/
	For the six	For the six
	months ended	months ended
Item	30 June 2020	30 June 2019
Associates:
Total carrying value in investment	3,475	9,738
Aggregated amounts per shareholding
percentage for the followings:
- net profit	(6,263)	(5,163)
- other comprehensive income	-	-

- total comprehensive income	(6,263)	(5,163)

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

DISCLOSURE OF INTERESTS IN OTHER ENTITIES (Continued)
2. Interests in associates (Continued)
1. Excess losses from associates

	Accumulated and
	unrecognized	Unrecognized	Accumulated
	loss for the	loss for this	and
	previous years as	period (or net	unrecognized
	at 31 December	profits shared in	loss as at
Name of associates	2019	this period)	30 June 2020
Beijing Leisure Trend Advertising
Company Limited	(5,423)	(186)	(5,609)
Beijing Beiqing Shengda Automobile
Service Company Limited	(1,193)	(28)	(1,221)
Beijing Beiqing Top Advertising
Limited	(12,619)	-	(12,619)
Hebei Jujingcai E-commerce
Company Limited	(872)	(5)	(877)
BY Time Consulting Co., Ltd.	(99)	(13)	(112)
Beijing International Advertising
Media Group Co., Ltd.	-	(5,423)	(5,423)

Total	(20,206)	(5,655)	(25,861)

Unrecognized commitments relating to investments in associates None
Contingent liabilities relating to investments in associates None

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

DISCLOSURE OF INTERESTS IN OTHER ENTITIES (Continued)
3. Equity in investment in other equity instruments
1. Basic information of relevant investee companies in relation to investment in other equity instruments:

		Primary			Fair value
	Place of	operation			as at	Proportion of
Company name	registration	place	Business nature	Shareholding	30 June 2020	total assets
				(%)		(%)
Beiyang Publishing &	Shijiazhuang,	Shijiazhuang,	Production, printing,	2.43	168,017	19.56
Media Co., Ltd.	Hebei	Hebei	publishing and
			distribution of
			books,
			newspapers and
			magazines
Beijing Keyin Media	Beijing	Beijing	Organizing exchange	16.00	45,061	5.24
and Culture Co.,			activities on
Ltd.			culture and art,
			and design,
			production and
			provision of
			agency service of
			advertisements
Beijing Youth Daily	Beijing	Beijing	Internet Information	5.00	2,845	0.33
Newspaper			Service
Internet
Communication
Technology Co.,
Ltd.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

DISCLOSURE OF INTERESTS IN OTHER ENTITIES (Continued)
3. Equity in investment in other equity instruments (Continued)
1. The investment strategies of major investments in respect of investment in other equity instruments:
  Beiyang Publishing & Media Co., Ltd. (hereinafter referred to as "Beiyang Media") is mainly engaged in the production, printing, publishing and distribution of books, newspapers and magazines. It is the main platform for Hebei Publishing & Media Group Co., Ltd. to perform transformation into a corporate and capitalized operations. Currently, the Company holds 43,706,423 shares of Beiyang Media, representing 2.43% of the aggregate share capital of Beiyang Media. The Company has made investments in Beiyang Media mainly based on the following consideration to obtain better investment returns: 1) the robust operating conditions of Beiyang Media; 2) its capital operation plans including the reform of shareholding system and listing. Subsequent to our investment, the Company sees the robust operating conditions of Beiyang Media in recent years and the assets and revenues increase steadily. The Company is optimistic about the future operation of Beiyang Media and intends to hold the shares for a long term.
  Beijing Keyin Media and Culture Co., Ltd. (hereinafter referred to as "Keyin Media") is mainly engaged in organizing exchange activities on culture and art, and design, production and provision of agency service of advertisements, etc. Currently, the Company holds 4,000,000 shares of Keyin Media, representing 16% of the aggregate share capital of Keyin Media. The Company has made investments in Keyin Media mainly based on the consideration of its robust operating conditions and listing plan. Subsequent to our investment, the Company sees the robust operating conditions of Keyin Media in recent years as it has delivered sustained profitability. The Company is optimistic about the future operation of Keyin Media and intends to hold the shares for a long term.

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

DISCLOSURE OF INTERESTS IN OTHER ENTITIES (Continued)
4. Equity in investment in other non-current financial assets
1. Basic information of relevant investee companies in relation to other non-current financial assets:

		Primary			Fair value
	Place of	operation			as at	Proportion of
Company name	registration	place	Business nature	Shareholding	30 June 2020	total assets
				(%)		(%)
Beijing Runxin	Beijing	Beijing	Investment	11.62	46,057	5.36
Dingtai			management
Investment
Center (limited
partnership)
Suzhou Huaying	Suzhou,	Suzhou,	Investment	2.61	2,717	0.32
Culture Industry	Jiangsu	Jiangsu	management
Investment
Enterprise
(limited
partnership)

The investment strategies of major investments in respect of other non- current financial assets:
The Company's wholly-owned subsidiary, Beiqing Network Culture Communication Co., Ltd., as a limited partner, established Beijing Runxin Dingtai Investment Center (limited partnership) (hereafter referred to as the "Fund") in 2013, with a shareholding of 11.62%. The Fund leverages on CSC Financial Co., Ltd. to focus on investing in equities of growth companies that plan to go public. The Company has made investment in the Fund mainly based on the consideration of achieving favourable yields from the Fund's investment projects and considerable investment returns.
In recent years, the Fund has also been actively facilitating various investment projects to realize exits via listing, merger and acquisition and restructuring, repurchase and transfer in NEEQ market, etc. A number of projects have realized exit after listing or partial exit and delivered satisfactory yield. As of 30 June 2020, the Company has received accumulated investment income of RMB38,583 thousand.
The Company is optimistic about the future operation and income of the Fund, and expects to achieve better investment returns upon our exit from the Fund at maturity.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

XI. DISCLOSURE OF FAIR VALUES

1. Fair value of assets and liabilities at the end of period and fair value measurement level

		Fair value as at 30 June 2020
	Level 1	Level 2	Level 3
	Fair value	Fair value	Fair value
Item	measurement	measurement	measurement	Total
I. Fair value measurement on a recurred
basis
(I) Other non-current financial assets	-	-	48,774	48,774
(II) Investment in other equity instruments	-	-	215,923	215,923
(III) Investment properties	-	121,646	-	121,646
1. leased buildings	-	121,646	-	121,646

Total assets measured at fair value on
a recurred basis	-	121,646	264,697	386,343

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS

1. Relationships with related parties

Related parties that had transactions with the Group during the period are as follows：

Relationship	Name of related party
Parent company and ultimate	BYDA
controlling company
Subsidiary of BYDA	Beiqing International Investment Consultancy (Beijing)
	Co., Limited
Subsidiary of BYDA	Beiqing M-Media (Beijing) Culture Media Co., Ltd.*
	(北青融媒 (北京) 文化傳媒有限公司)
Subsidiary of BYDA	Beijing Youth Journal Agency
Subsidiary of BYDA	Legal Evening Agency
Subsidiary of BYDA	Beijing Science and Technology News Agency
Subsidiary of BYDA	Beijing Education Media Co., Limited
Subsidiary of BYDA	Beiqing Film & Television (Beijing) Co., Ltd.*
	(北青影視（北京）有限公司)
Subsidiary of BYDA	Beijing Beiqing Culture and Arts Company
Subsidiary of BYDA	Beijing China Open Promotion Co., Ltd.
Subsidiary of BYDA	Beijing Youth Daily Network Communication Technology
	Co., Ltd.
Associate of the Company	Beijing International Advertising Media Group Co., Ltd.
Associate of the Company	Beijing Beiqing Top Advertising Limited
Associate of the Company	Beijing Leisure Trend Advertising Company Limited
Associate of the Company	Beijing Beisheng United Insurance Agency Co., Limited
Associate of the Company	Beijing Beiqing Shengda Automobile Service Company
	Limited
Associate of the Company	Hebei Jujingcai E-commerce Company Limited
Associate of the Company	BY Time Consulting Co., Ltd.
Associate of the Company	Chongqing Soyang Internet Technology Co., Ltd.
Associate of the Company	Beijing Shangyou Network Technology Co., Ltd.
Associate of the Company	Beijing Shangyou International Travel Agency Limited
Other related party	Shanghai China Business News Company Limited
	(Note 1)
Other related party	Chongqing Youth Industrial Co., Ltd. (Note 2)
Other related party	Chongqing Youth Daily
Other related party	Korea Central M&B Publishing Group
Key Management Personnel	Directors, supervisors and senior management personnel
	including Ji Chuanpai

Note 1: Shanghai China Business News Company Limited is an associate of BYDA.

Note 2: Chongqing Youth Industrial Co., Ltd. is one of the shareholders of Chongqing Media.

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)

2. Parent company and ultimate controlling company

Parent company and ultimate controlling company

Name of parent company and	Type of	Place of	Business	Legal
ultimate controlling company	enterprise	registration	nature	representative
BYDA	State-owned	Beijing	Media and	Tian Kewu
	enterprise		publishing

BYDA, the Company's parent and ultimate controlling company, is a state- owned enterprise established in PRC and mainly engaged in publishing and distribution of "Beijing Youth Daily", "Beijing Teenager Daily", "Middle School Newsletter News", "Beijing Today", etc.

Parent company's registered capital and its changes

	As at			As at
	1 January	Increase in	Decrease in	30 June
Parent company	2020	this period	this period	2020
BYDA	22,439	-	-	22,439

Shares or equity held by parent company and its changes

	Shareholding	Shareholding
	amount		percentage (%)
	As at	As at	As at	As at
Parent	30 June	1 January	30 June	1 January
company	2020	2020	2020	2020

LIMITED CORPORATION MEDIA BEIJING

BYDA	124,840	124,840	63.27	63.27

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)

3. Related party transactions

Purchase of goods/receipt of services

		For the six months
		ended 30 June
	Pricing principle
	for related party
Related parties	transactions	2020	2019
BYDA (Note)	Contracted price	5,900	3,702
Subsidiaries of BYDA	Contracted price	1,322	-
Other related parties	Contracted price	41	65

Total		7,263	3,767

Note: Pursuant to the advertising space operating rights and options subscription agreement entered into between the Company and BYDA on 7 December 2004, the Company agreed to pay 16.5% of the advertising revenue to BYDA for the period from 1 October 2004 to 30 September 2033.

Sale of goods/rendering services

		For the six months
		ended 30 June
	Pricing principle
	for related party
Related parties	transactions	2020	2019
BYDA	Contracted price	-	585
Subsidiaries of BYDA	Contracted price	425	1,040
Other related parties	Contracted price	-	320

Total

425

1,945

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)

3. Related party transactions (Continued)

Leasing (The Group as lessor)

					Rental income
	Nature of	Date of	Date of	Basis for	recognized for
Lessee	assets leased	commencement	termination	rental income	this period
BYDA	Building	2019-1-1	2021-12-31	Contracted price	3,099

Leasing (The Group as lessee)

					Rental
					expenses
	Nature of	Date of	Date of	Basis for	recognized for
Name of lessor	assets leased	commencement	termination	rental fees	this period
BYDA	Building	2019-1-1	2021-12-31	Contracted price	842
BYDA	Building	2020-1-1	2020-12-31	Contracted price	286

Remuneration for key management personnel

	For the six months
	ended 30 June
Item	2020	2019
Remuneration for key management
personnel	1,119	1,181

(6) Guarantee from related parties None

LIMITED CORPORATION MEDIA BEIJING

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

2020

For the six months ended 30 June 2020

LIMITED CORPORATION MEDIA BEIJING

XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)

4. Balances with related parties

Accounts receivable due from related parties

	As at	As at
	30 June 2020	31 December 2019
		Provision		Provision
	Carrying	for bad	Carrying	for bad
Related parties	amount	debts	amount	debts
BYDA	9,016	-	5,657	-
Associates of the
Company	47,884	47,649	47,884	47,420
Subsidiaries of BYDA	116,407	15,938	115,927	14,331
Other related parties	6	5	-	-

Total	173,313	63,592	169,468	61,751

Other receivables due from related parties

	As at	As at
	30 June 2020	31 December 2019
		Provision		Provision
	Carrying	for bad	Carrying	for bad
Related parties	amount	debts	amount	debts
Associates of the
Company	39	39	39	39
Subsidiaries of BYDA	5,174	2,692	5,178	2,695

Total	5,213	2,731	5,217	2,734

2020

For the six months ended 30 June 2020

NOTES TO THE FINANCIAL STATEMENTS

(Amounts expressed in thousands of RMB unless otherwise stated in the notes to the financial statements)

XII. RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)

4. Balances with related parties (Continued)

Accounts payable by related parties

	As at	As at
	30 June	31 December
Related parties	2020	2019
BYDA	801	501
Subsidiaries of BYDA	-	736
Other related parties	616	616

Total	1,417	1,853

Other payables by related parties

	As at	As at
	30 June	31 December
Related parties	2020	2019
BYDA	816	816
Associates of the Company	200	100
Subsidiaries of BYDA	-	150
Other related parties	52	77

Total	1,068	1,143

Prepayments by related parties

	As at	As at
	30 June	31 December
Related parties	2020	2019

LIMITED CORPORATION MEDIA BEIJING

BYDA	4,720	7,861

Total	4,720	7,861

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Beijing Media Corporation Ltd. published this content on 11 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 September 2020 08:39:03 UTC

Latest news about Beijing Media Corporation Limited

Beijing Media Corporation Limited Reports Earnings Results for the Full Year Ended December 31, 2023	Mar. 22	CI
Beijing Media Renews Advertising Deal With Parent BYDA	Feb. 07	MT
Beijing Media Corporation Limited Announces Change of Director and Change of Composition of Board Committees	Dec. 29	CI
Beijing Media Shareholders to Vote on Advertising Concession Rights on Beijing's MTR	Dec. 15	MT
Beijing Media Gets Two-Year Concession for Advertising Services on Beijing MTR	Dec. 11	MT
Beijing Media Corporation Limited Announces Resignation of Xu Jian as Non-Executive Director and A Member of the Remuneration Committee	Dec. 11	CI
Beijing Media Bags Advertising Contract From Beijing MTR	23-10-27	MT
Beijing Media Corporation Limited Reports Earnings Results for the Half Year Ended June 30, 2023	23-08-25	CI
Beijing Media Corporation Limited Reports Earnings Results for the Full Year Ended December 31, 2022	23-03-24	CI
Beijing Media Corporation Limited Announces Resignation of Mr. Su Zhaohui as Chairman of the Board, Non-Executive Director, Chairman of the Nomination Committee of the Board	23-02-24	CI
Beijing Media Corporation Limited Approves Appointment of Sun Baojie as Non-Executive Director	23-02-24	CI
Beijing Media Corporation Limited Announces Resignation of Su Zhaohui, the Chairman, Non-Executive Director, Chairman of the Nomination Committee of the Board	23-01-19	CI
Beijing Media Corporation Limited Announces Appointment of Joint Company Secretaries	22-12-28	CI
Beijing Media Corporation Limited acquired 5.291% stake of Beiqing Community Culture Media Limited from Shanghai Xingjing Investment Centre (Limited Partnership) for RMB 1.52 million.	22-10-27	CI
Beijing Media Corporation Limited Announces Board Changes	22-09-29	CI
Beijing Media Corporation Limited Reports Earnings Results for the Half Year Ended June 30, 2022	22-08-26	CI
Beijing Media Corporation Limited Announces Change of Company Secretary	22-08-19	CI
Beijing Media Corporation Limited Announces Committee Changes	22-06-17	CI
Beijing Media Corporation Limited Announces Directorate Appointments	22-06-17	CI
Beijing Media Corporation Limited Announces Resignation of Mr. Du Min as Executive Vice President	22-05-31	CI
Beijing Media Corporation Limited Enters into Property Lease Contracts with BJAI and Beijing Rural Exchange	22-03-31	CI
Beijing Media Corporation Limited Reports Earnings Results for the Full Year Ended December 31, 2021	22-03-25	CI
Hong Kong Bourse Hits Beijing Media, Directors with Disciplinary Measures	22-02-11	MT
Beijing Media Corporation Limited Appoints Ms. Hou Hui as Deputy Chief Accountant and Head of Finance	21-12-16	CI
Beijing Media Corporation Limited Approves Board Changes	21-11-25	CI

Chart Beijing Media Corporation Limited

Duration

Period

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Company Profile

Beijing Media Corporation Limited is principally engaged in the provision of advertising services and the printing and trading of print-related materials. The Company operates through five business segments. The Advertising segment is engaged in the sales of advertising spaces and outdoor advertising of the media or activities operated by Beijing Youth Daily Agency (BYDA), Chongqing Youth Daily, Beiqing Community Newspaper and CeCi magazine. The Printing segment is involved in the provision of printing services. The Trading of Print-related Material segment is engaged in the sales of paper, ink, lubricant, film, pre-coating photosensitive liquid plate and rubber plate used for printing and other print-related materials. The Distribution segment is engaged in the distribution of newspapers that are mainly published by Chongqing Youth Daily. The Network Technical Services segment is involved in the provision of network technical supports and maintenance services for online gaming.

Sector

Advertising & Marketing

Calendar

2024-08-22 - Q2 2024 Earnings Release (Projected)

More about the company

Income Statement Evolution

More financial data

Sector Other Advertising & Marketing

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