Mango Excellent Media Co. Ltd.Annual Report 2023

April 2024

1Annual Report 2023

Section I Important Note Table of Contents and Definitions

The Board of Directors the Board of Supervisors directors supervisors and

executives of the Company hereby warrant that the information contained in this

Annual Report is true accurate and complete and this Annual Report is free from any

misrepresentation misleading statement or material omission and agree to assume

joint and several liability for this Annual Report.CAI Huaijun Principal of the Company ZHANG Zhihong CFO and TAO Jinyu

Chief Accountant hereby represent that the financial statements contained in this

Annual Report are true accurate and complete.All directors of the Company attended the meeting of the Board of Directors

reviewing this Report.This Report contains certain forward-looking statements regarding future plans

development strategies and other projected matters which do not constitute any

substantial covenant made by the Company to the investors and related persons. The

investors and related persons shall be fully aware of the relevant risks and understand

the differences among such plans forecasts and covenants.The Company has stated in details the possible risks in its operation and

countermeasures in this Report. Investors are advised to refer to the Section III“Management’s Discussion and Analysis – Prospects for future development of theCompany”.According to the profit distribution proposal approved by the Board of Directors

2the Company will distribute a cash dividend of RMB1.8 (tax inclusive) per 10 shares

to all shareholders on the basis of 1870720815 shares without distributing any bonus

shares or transferring any capital reserve to the share capital.

3Table of Contents

Section I Important Note Table of Contents and Def....2

Section II Company Profile and Key Financial Indic....7

Section III Management’s Discussion and Analysis ... 11

Section IV Corporate Governance .....................36

Section V Environmental and Social Responsibility ...57

Section VI Important Events .........................58

Section VII Share Changes and Information of Share...72

Section VIII Preference Shares ......................79

Section IX Bonds ....................................80

Section X Financial Report ..........................81

4List of References

1. Financial statements signed and chopped by the Principal CFO and Chief Accountant of the Company;

2. Original of the auditor’s report stamped with the seal of the accounting firm and signed and chopped by the certified public

accountants;

3. Originals of all documents of the Company publicly disclosed on the website for information disclosure designated by the

China Securities Regulatory Commission during the Reporting Period and related announcements; and

4. Other references.

5Definitions

Terms means Definition

Mango Excellent Media Company we or

means Mango Excellent Media Co. Ltd.the Listed Company

Mango Excellent Media Co. Ltd. means the full name of the Company in English.MANGO means the short name of the Company in English.Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd. a wholly-

Happy Sunshine means

owned subsidiary of the Listed Company.the online video platform affiliated to the Listed Company and operated by

Mango TV means

Happy Sunshine.Hunan Golden Eagle Cartoon Media Co. Ltd. a wholly-owned subsidiary

Golden Eagle Cartoon means

of the Listed Company.Xiaomang E-commerce Co. Ltd. a subsidiary controlled by the Listed

Xiaomang E-commerce means

Company.Happigo means Happigo Co. Ltd. a wholly-owned subsidiary of the Listed Company.Shanghai EE-Media Co. Ltd. a wholly-owned subsidiary of the Listed

EE-Media means

Company.Mango Studios Culture Co. Ltd. a wholly-owned subsidiary of Happy

Mango Studios means

Sunshine.Hunan Mango Entertainment Co. Ltd. a wholly-owned subsidiary of Happy

Mango Entertainment means

Sunshine.Shanghai Mangofun Technology Co. Ltd. a wholly-owned subsidiary of

Mangofun means

Happy Sunshine.Mango Media means Mango Media Co. Ltd. the controlling shareholder of the Company.Golden Eagle Broadcasting System Co. Ltd. the parent company of Mango

GBS means

Media Co. Ltd. as the controlling shareholder of the Company.Hunan State-owned Cultural Assets Supervision and Administration

Hunan Cultural Assets Commission means

Commission the actual controller of the Company.the company that operates GBS in an integrated manner where they areHunan Broadcasting System means managed under the model of “one Party committee two entities andintegrated operation”.HBNHG means Hunan Broadcasting Network Holding Group Co. Ltd. a subsidiary of GBS.Xiaoxiang Film Group means Xiaoxiang Film Group Co. Ltd. a subsidiary of GBS.HTBI means Hunan TV & Broadcast Intermediary Co. Ltd.China Mobile means China Mobile Communications Group Co. Ltd.Internet protocol television a technology integrated with Internet

multimedia communication and other technologies that provides home users

IPTV means

with digital television and other interactive services through broadband

network.over the top which provides a variety of video and data services to users via

OTT means

the Internet.intellectual property the property rights given to persons over the creations

IP means

of their minds.APP means application i.e. mobile application program.PAD means portable device.PC means personal computer.TV means television.AR means augmented reality.VR means virtual reality.

5G means 5G network.

QM means QuestMobile a mobile web big data company.AIGC means AI generated content.Chat Generative Pre-trained Transformer a large language model based on

ChatGPT means

the GPT-4 architecture developed by OpenAI

a data platform which carries out statistics and analysis of the program

Enlightent means

broadcast data of long video platforms and channels

6Section II Company Profile and Key Financial Indicators

I. Company profile

Stock short name Mango Stock code 300413

Chinese name 芒果超媒股份有限公司

Chinese short name 芒果超媒

English name (if any) Mango Excellent Media Co. Ltd.English short name (if any) Mango

Legal representative CAI Huaijun

Registered address Golden Eagle TV Culture City Changsha Hunan

Postal code of registered

410003

address

History of changes in

None

registered address

Office address Golden Eagle TV Culture City Changsha Hunan

Postal code of office address 410003

Company website https://www.mgtv.com

Email mangocm@mangocm.com

II. Contact person and contact information

Board Secretary Securities Affairs Representative

Name ZHANG Zhihong ZHOU Yong

Golden Eagle TV Culture City Golden Eagle TV Culture City

Address

Changsha Hunan Changsha Hunan

Telephone (0731) 82967188 (0731) 82967188

Facsimile (0731) 82897962 (0731) 82897962

Email mangocm@mangocm.com mangocm@mangocm.com

III. Information disclosure and place for keeping annual report

Website of the stock exchange for disclosing the Company’s

http://www.szse.cn

annual report

The China Securities Journal the Securities Times the

Media and website for disclosing the Company’s annual report Securities Daily the Shanghai Securities News and

http://www.cninfo.com.cn

Place for keeping the Company’s annual report Board of Directors Office of the Company

IV. Other related information

Accounting firm engaged by the Company:

Name of accounting firm Pan-China Certified Public Accountants LLP

6/F No. 128 Xixi Road Xihu District Hangzhou City

Office address of accounting firm

Zhejiang Province

Name of accountants signing this Report ZHENG Shengjun and HU Jian

Sponsor engaged by the Company that performs the duties of ongoing supervision over the Company during the Reporting Period:

□Applicable □N/A

Names of sponsor Period of continuous

Name of sponsor Office address of sponsor

representatives supervision

China International Capital 27 & 28/F Block 2 China YAO Xudong and WANG From August 24 2021 to

Corporation Limited World Towers No. 1 Kun December 31 2023

7Jianguomenwai Street

Chaoyang District Beijing

Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the Reporting

Period:

□Applicable □N/A

V. Key accounting data and financial indicators

Did the Company need to retrospectively adjust or re-state accounting data of prior accounting years

□ Yes □No

Reason for retrospective adjustment or re-statement:

Changes in accounting policies the business combination involving entities under common control and other reasons.Increase/decrease

20222021

2023 YoY

Before adjustment After adjustment After adjustment Before adjustment After adjustment

Operating revenue

14628016301.8413704339712.3113976774034.924.66%15355863482.0715800575582.17

(RMB)

Net profit attributable to

shareholders of the Listed 3555705558.90 1824925935.93 1864245432.69 90.73% 2114090171.85 2173186477.07

Company (RMB)

Net profit attributable to

shareholders of the Listed

Company less non- 1695473001.05 1587332987.64 1604009042.23 5.70% 2059758151.24 2067988835.94

recurring gain or loss

(RMB)

Net cash flow from

operating activities 1083773256.71 551646897.99 621803699.44 74.30% 561800882.37 591807858.26

(RMB)

Basic earnings per share

1.900.981.0090.00%1.171.20

(RMB/share)

Diluted earnings per

1.900.981.0090.00%1.171.20

share (RMB/share)

Weighted average return

17.34%10.20%10.17%7.17%16.25%16.22%

on equity

Increase/decrease

End of 2022 End of 2021

End of 2023 YoY

Before adjustment After adjustment After adjustment Before adjustment After adjustment

Total assets (RMB) 31422386654.49 29049673556.55 29783551722.86 5.50% 26110751404.90 26809389379.67

Net assets attributable to

shareholders of the Listed 21492422786.43 18850714836.78 19014691412.16 13.03% 16966400358.23 17373834160.11

Company (RMB)

Reason for changes in accounting policies and correction of accounting errors:

Since January 1 2023 we have adopted the provisions contained in the Interpretation of the Accounting Standards for BusinessEnterprises No. 16 issued by the Ministry of Finance regarding the “accounting treatment of deferred taxes related to assets andliabilities arising from single transactions to which the initial recognition exemption does not apply” and adjusted the single

transactions to which such provisions apply that occurred during the period from the beginning of the earliest period in which we

adopted such provisions in the presentation of the financial statements for the first time till the date of initial adoption of such provisions

as follows: with respect to the taxable temporary difference and deductible temporary differences arising from lease liabilities and

right-of-use assets provisions related to retirement obligations and corresponding assets recognized in connection with the single

transactions to which such provisions apply at the beginning of the earliest period in which we adopted such provisions in the

presentation of the financial statements for the first time the cumulative effect is treated as an adjustment to the opening retained

earnings and other related financial statement items for that period in accordance with such provisions and the provisions of the CASBE

No. 18 – Income Tax.Whether the lower of the net profit before and after deduction of non-recurring gain or loss in the past three accounting years has been

negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concern is uncertain

□Yes □No

Whether the lower of the net profit before and after deduction of non-recurring gain or loss is negative

□Yes □No

8VI. Key financial indicators by quarter

In RMB

First quarter Second quarter Third quarter Fourth quarter

Operating revenue 3101059998.83 3691961699.32 3573177607.48 4261816996.21

Net profit attributable

to shareholders of the 548278325.03 711208458.41 521322289.18 1774896486.28

Listed Company

Net profit attributable

to shareholders of the

Listed Company less 521486713.37 657359741.32 443861449.84 72765096.52

non-recurring gain or

loss

Net cash flow from

-252682158.941299068498.9644571778.27-7184861.58

operating activities

Whether there’s any material difference between the financial indicators or aggregate amounts thereof set out above and the

corresponding financial indicators set out in any quarter report or semi-annual report of the Company already disclosed

□ Yes □No

The differences between the indicators set out above and the corresponding indicators contained in the quarterly reports and semi-

annual reports already disclosed were primarily due to the effect of the business combination involving entities under common control

(Hunan Golden Eagle Cartoon Media Co. Ltd.).VII. Differences in accounting data arising from adoption of foreign and Chinese accounting

standards concurrently

1. Differences between net profit and net assets disclosed on the financial statements according to the

international accounting standards and the Chinese accounting standards concurrently

□Applicable □N/A

During the Reporting Period there was no difference in net profits and net assets in the financial report disclosed in accordance with

the international accounting standards and the Chinese accounting standards.

2. Differences between net profit and net assets disclosed on the financial statements according to the foreign

accounting standards and the Chinese accounting standards concurrently

□Applicable □N/A

During the Reporting Period there was no difference in net profits and net assets in the financial report disclosed in accordance with

the foreign accounting standards and the Chinese accounting standards.VIII. Items and amounts of non-recurring gain or loss

□ Applicable □N/A

In RMB

Item Amount in 2023 Amount in 2022 Amount in 2021 Remark

Gain or loss on disposal of non-current

assets (including the written-off part of the 1151553.70 807213.90 501358.91

asset impairment reserve accrued)

Government subsidies accrued to the current

profit and loss (excluding government

subsidies that are closely related to the

business of the Company and are provided 63122567.77 29499336.70 27521238.14

in fixed amount or quantity continuously

according to the applicable polices and

standards of the country)

9Profit and loss from investment or asset

92809746.83119290763.7234265617.23

management by commissioned parties

Reversal of impairment loss on accounts

receivable tested for impairment 17343043.26 3355000.00 4843660.00

individually

Net profit or loss of subsidiaries acquired

through business combination involving

entities under common control from the 32481963.81 39292296.69 59525956.70

beginning of the current period to the

combination date

Profit and loss from debt restructuring 3000000.00 27219600.00

One-off

One-off effect of adjustments of tax adjustment due to

accounting and other laws and regulations 1628790218.38 changes in the

on current profit or loss enterprise income

tax policy

Other non-operating revenue and

25036359.5841319889.16-21265876.15

expenditure other than those listed above

Less: Effect on income tax

243024.40

Effect on minority interests (tax

3259871.08547709.71194313.70

exclusive)

Total 1860232557.85 260236390.46 105197641.13 --

Specific circumstances of other gain or loss items that meet the definition of non-recurring gain or loss:

□Applicable □N/A

We do not have any other gain or loss items that can be defined as non-recurring gain or loss.Statement on defining non-recurring gain or loss items listed in the Explanatory Announcement No. 1 on Information Disclosure of

Publicly Listed Companies – Non-recurring Gain or Loss as recurring gain or loss items

□Applicable □N/A

We do not have any non-recurring gain or loss items listed in the Explanatory Announcement No. 1 on Information Disclosure of

Publicly Listed Companies – Non-recurring Gain or Loss defined as recurring gain or loss items.

10Section III Management’s Discussion and Analysis

I. Situations of our industry during the Reporting Period

1. Media convergence enters a new stage and the mainstream media greet strategic opportunities.

Since the overall implementation of media convergence as a national strategy the development of media convergence has yielded

remarkable results including continuously expanding all-media arena numerous phenomenal convergence media products and wider

and deeper mainstream communication through network channels. At present China’s media convergence process has gradually moved

from “addition” toward “convergence” and in the context of new ecosystem and new technologies entered the new stage of all-round

development and system building. In the new journey the mainstream media have the duty to continuously build a healthy network

ecosystem step up the development of media convergence improve the communication and leadership powers influence and public

credibility of mainstream opinions and provide strong support to the building of a strong country and national rejuvenation of China

in the field of public opinions and communication.

2. Content supply focuses on top-tier works and the share of exclusively broadcast films TV dramas and variety shows is

increasing.Though the major long video platforms may adopt different content patterns TV dramas and variety shows are their foundation.According to Enlightent in 2023 the supply of variety shows films and TV dramas was generally stable the number of new works

was almost the same as that in 2022 and the video platforms focused more on top-tier works that can remarkably attract new users and

vertical contents focusing on core users and cut certain ordinary contents having a poor return on investment. In terms of broadcasting

strategy the video platforms adopted exclusive broadcast as their primary strategy with the share of exclusively broadcast new TV

dramas and series increasing from 72% to 78% the share of variety shows exclusively broadcast on TV and online both exceeded 50%

and the share of variety shows exclusively broadcast online reached 93%. As micro and short dramas become a new incremental content

market the long video platforms have increased their deployment in short dramas.

3. The long video user base is basically stable and membership operation enters a high-quality development stage.

According to QuestMobile the number of online video users was 786 million in December 2023 almost the same as one year

ago. The competition pattern of the domestic long video industry has gradually shifted from the original “top 3” toward “2+2” top 4

video platforms. The user base and duration of watch time on the major video platforms may fluctuate due to the release of key contents

and popular programs but the overall competition pattern is stabilizing. In the context of competition over existing users the platforms

are actively exploiting existing users taking into account their user development stage developing new user terminals and channels

improving the refined content operation level and increasing their ARPPU in order to achieve high-quality development.

4. The industry is gradually regaining its confidence and the advertising market is showing a structural recovery trend.

According to CTR the domestic advertising market was gradually recovering amid fluctuations in 2023 up about 6% year on

year. Despite the recovery of the market confidence to a certain extent certain advertisers are cautious in the utilization of their

advertising budget. In terms of different advertisement types general performance-based advertisements have taken the lead in strong

recovery while the recovery of brand advertisements lags behind. When the consumer market enters an upward cycle a more reliable

and sustainable recovery of brand advertisements can be expected due to replenishment of budget. The top-tier media have relative

advantages in market competition due to their brand value user access and transformation effect. AI and other technologies may bring

about new drives for the upgrading of advertisement operation system.

5. Large screen users are increasing stably and the new policies promote the healthy development of the industry.

The industrial authorities have taken a combination of actions against the Matryoshka doll-style charges complicated operations

and other problems existing in the household large screen TV business to continuously regulate the order of business operation of the

industry and achieved staged results of governance. IPTV and OTT license holders are expected to benefit from the regulatory

compliant and high-quality development of the industry. According to Gozen Analytics in 2023 the percentage of homes using IPTV

OTT and other types of intelligent TV in China was 52% per day or 91% per month which was basically stable. As of the end of 2023

there were 326 million intelligent TV subscribers in China an increase of 4% year on year. As a household information and

entertainment hub and major channel for the content ecosystem of long and short video platforms intelligent TV still occupies an

important position in content terminals.

6. AIGC promotes industrial reform and enables the application scenarios in the field of media in an all-round way.

In July 2023 the Cyberspace Administration of China and other six authorities jointly promulgated the Interim Measures for the

Administration of Artificial Intelligence Generated Content Services designed to promote the healthy development of the artificial

intelligence generated content (AIGC) industry with policies. AIGC provides a new way to create content following PGC and UGC.A large number of large model products have been released and widely applied in the exploration of innovative applications and

business models in gaming social networking video and other media fields. The continuous upgrading of AI models is expected to

create more application scenarios and space for growth further reduce content production costs improve the efficiency and quality of

content production and open up new commercial spaces.II. Our main business during the Reporting Period

We are required to comply with the disclosure requirements for “Internet Video Business” set forth in the Guide on Self-regulatory

Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 – Disclosure of Industry Information by the Companies

Listed on the ChiNext Board.

11We are the sole state-owned long video and new media company listed on the A-share market represent an important achievement

in reform made by the Hunan Broadcasting System (HBS) in actively responding to the strategy of the Central Government on

promoting the in-depth media convergence and development and are one of the first group of leading entities in the convergence of

radio TV and media named by the State Administration of Radio Film and Television (“SARFT”). Leveraging the Mango media

convergence ecosystem and centered on our Internet video platform Mango TV we have focused on the control of the entire industry

chain and ecosystem synergy integrated resources of key elements opened up the upstream and downstream of the industry chain

established an interconnected ecosystem matrix with multiple linkages and built a mainstream new media group with strong leadership

communication and competitive powers. We are primarily engaged in Mango TV Internet video new media interactive entertainment

content production and content e-commerce businesses.

1. Mango TV Internet video

Our Mango TV Internet video business comprises advertising membership and operator businesses where the membership

business is designed to attract target audience to become subscribing members through promotional campaigns and channel expansions

by leveraging our rich copyright resources and premium exclusive contents; the advertising business focuses on contents fully explores

the marketing value of high-quality content IPs and provides clients with naming placement patching inserting and other advertising

products and services; and in the operator’s large-screen business we as a license holder with advantageous contents cooperate with

telecommunication carriers and cable TV operators and share the revenues from VOD with them.

2. New media interactive entertainment content production

Our new media interactive entertainment content production business mainly comprises content production and operation artist

agency music copyright and IP derivatives businesses; in the content production and operation business we create and produce variety

shows films TV dramas cartoons for children and other programs and earn revenues through copyright distribution content operation

or otherwise; in the artist agency business we build an echelon of artists at all levels and of various types and create a closed loop by

arranging for the artists to take part in films TV dramas variety shows commercial performances branded concerts or otherwise; in

the music copyright business we grant licenses on the basis of music IP resources accumulated and continuously enriched by the artists;

and in the IP derivatives business we develop multi-dimensional derivatives based on our premium content IPs and M-CITY Maiji

and other offline location based entertainment and amusement brands.

3. Content e-commerce

In the content e-commerce business leveraging our advantages in media creativity and content production we conduct integrated

communications and marketing through APP large screen mini program live streaming room and other channels to attract consumer

demands and sell goods. Xiaomang e-commerce is designed as “a content e-commerce platform focusing on home-made new fashions”

that focuses on the integration of IP content and e-commerce modes creates the “super live steaming rooms” with the help of multiple

unique content-based product lines and continuously improves the closed loop of “content + video + e-commerce”. Happigo e-

commerce targets silver-haired old people on the basis of large screen TV audience serves high-end members through private domain

marketing and sells goods through TV APP and other channels.III. Analysis of core competencies

1. Platform advantages

As a Party-controlled media and state-owned enterprise we inherit the media gene that “orientation is more precious than gold”

enter the main battlefield as a main force stick to the correct political direction direction of guidance of public opinion and orientation

of values strictly implement the content “three reviews” system and the responsibility system for ideological work build a strong

ideological front vigorously create a sound network ecosystem and improve the communication and leaderships powers influence

and public credibility of mainstream public opinions. We have precise insight profound understanding and strong execution capability

in mainstream communication and integrate mainstream communication with the communication system for social mainstream

cultural values.

2. Advantages in convergence

12The Report to the 20th National Congress of the Communist Party of China (“CPC”) requires the improvement of the systems forcommunications across all forms of media and creation of a new environment of mainstream public opinion” which marks that the in-

depth media convergence enters a period of important opportunities for high-quality development. We have intensively implemented

the strategic plan made by the Central Government on accelerating the in-depth media convergence and built an integrated ecosystem

comprising Mango TV Golden Eagle Cartoon Xiaomang e-commerce and Hunan Satellite TV. Through multi-screen linkage multi-

domain marketing and diversified convergence the four platforms give full play to the effect of business synergy and resource

integration create a linked development model featuring joint creation and sharing and effectively transform the advantages of media

convergence into drives for development.

3. Institutional advantages

Relying on our efficient and flexible market-oriented operating mechanism we continuously improve the management and

operating efficiency of our platforms implement the compensation and incentive system that gives more pay for more work and gives

priority to efficiency to stimulate the employees’ creativity; grant the power to manage and allocate personnel and property to the

front-liners based on the four-level management system comprising independent studios teams etc.; accelerate the competition among

internal teams through market-oriented talent flows “H” type double talent channel management young talent training project or

otherwise; and use the “intelligent mid-end matrix” to build a content-technology-risk control-operation coordinated linkage

mechanism to further liberate the productive forces of content teams.

4. Advantages in innovation

We stick to the concept of “innovate or die” build a strong content team system continuously secure core essential production

factors and firmly maintain our core competencies in content innovation. Our four platforms currently have 56 variety show production

teams 22 film and TV drama production teams and 36 strategic studios under the Xinmang Program thereby becoming the largest

variety show producer in China. By establishing the content innovation bidding system innovating in creativity research development

and production chain or otherwise we stimulate the teams’ creative power maintain a keen sense of smell and rapidly respond to

market changes with innovative contents.

5. Advantages in users

As of the end of 2023 Mango TV had 66.53 million paying users ranking steadily among the top long video platforms in China.We stick to the special content strategy and platform positioning of “youth metropolis and women” to realize that our clear user basefine content products and advertisers are linked and fit perfectly with each other. The overall user image of Mango TV is “vigor fashionand quality” among others and its percentage of women users is higher than the average level of the industry. Clear user imaging and

platform positioning will enhance our special advantages in realizing the brand value of our platform through multiple channels and in

a variety of ways and building the membership operation system.

6. Advantages in ecosystem

Leveraging our advantages in proprietary contents we have built the synergistic and complementary closed loop of Mango new

media ecosystem covering the entire industry chain of media and Internet where the upstream mainly includes artist agency and variety

show film and TV drama and children’s cartoon production business the mid-stream is responsible for content operation and

distribution through multiple channels provided by the online video platforms in reliance on our strong content production capabilities

and premium content matrix and the downstream centers on offline location-based entertainment parent-child amusement park andother derivative operations based on Mango family content IPs creates a wholly new business model comprising “content + video +e-commerce” with content as the basis and realizes monetization of derivatives through multiple online and offline channels.

7. Advantages in licenses

Mango TV is the sole market player in the Internet video industry that holds both IPTV and OTT business licenses with its smart

large-screen business covering 31 provincial regions in China which is an important supporting point for us to develop 5G and living

room economy. In reliance on our complete licenses our video content business covers all terminals including mobile phone PAD

PC TV IPTV and OTT. We are the first video media platform that has actually built “one cloud and multiple screens” system in the

industry. As the Internet TV industry enters the high-quality development stage the licenses held by us will further show our advantages.

8. Advantages in business model

We firmly believe that the content is the king and have established a sustainable and sound business model. In reliance on our

sound market-oriented operation mechanisms we have continuously improved the efficiency of business innovation and the risk control

level maximized the input-output ratio and become a market player in the online video industry that has made profits for many years.We have realized effective control over content production costs through accurate user positioning strong content production

capabilities and effective cluster of core production factors. In reliance on our industry leading model of monetization through

“membership + advertising + operator + e-commerce” channels we have developed multiple sources of revenue.IV. Analysis of main business

1. Overview

The year of 2023 is the first year for the full implementation of the spirit of the 20th National Congress of the CPC and also the

10th year of the overall implementation of media convergence as a national strategy. During the Reporting Period we adhered to the

spirit of General Secretary Xi Jinping’s cultural ideology and the instructions in his series important speeches on media convergence

as the fundamental principles and guidelines addressed the uncertainties of the external environment with the certainties of our own

development focused on in-depth media convergence consolidated the advantages of multi-platform coordinated development

stimulated intrinsic drives for our core business through content innovation promoted diversified development of the emerging types

of operations on the basis of ecosystem coordination and took into consideration both short-term goals and medium- and long-term

strategies made steady and strong progress in high-quality development and achieved steady improvement of all key operating

indicators. In 2023 our total operating revenue was RMB14.628 billion an increase of 4.66% year on year (where in the fourth quarter

13our total operating revenue was RMB4.262 billion an increase of 21.16% year on year); our net profit attributable to the shareholders

of the List Company was RMB3.556 billion an increase of 90.73% year on year; and our net profit attributable to the shareholders of

the List Company after deduction of non-recurring gain or loss was RMB1.695 billion an increase of 5.70% year on year. We made

the 15th list of “Top 30 Cultural Enterprises in China” which was the fourth time we made the list since we completed the major asset

restructuring in 2018 and further consolidated our position in the “first echelon” of the cultural industry.

1. Hold fast to the communication position and always fulfill the duties and missions of mainstream media

We always uphold the principle that “media controlled by the Party shall adhere to the leadership of the Party with utter loyalty”

focus on the duties and missions to “hold up the flag gather the people train new talents promote culture and showcase the image”

continuously strengthen the mainstream new media through our high-quality development and enhance the leadership and

communication powers and influence of the mainstream public opinion through reform innovation convergence and development to

make positive energy stronger and central theme more magnificent. First focusing on major thematic communication. Mango TV has

prominently featured “Study Moments” on the first screen of its homepage with a total of over 6 billion views of the special section

of important reports featuring General Secretary Xi Jinping and released special features on themes such as themed education for

studying and implementing Xi Jinping thought on socialism with Chinese characteristics for a new era studying and implementing Xi

Jinping’s cultural ideology and celebrating the 102nd anniversary of the founding of the CPC. Second promoting cultural

internationalization. We have actively implemented the requirement for “strengthening international communications capabilities”

proposed in the Report to the 20th National Congress of the CPC and continuously explored the ways to tell China’s stories and make

China’s voices heard in the world. “Ride the Wind 2023” attracted wide attention from 600 overseas media outlets with its program

mode exported to Vietnam. “Divas Hit the Road” was recommended by 36 embassies abroad. Mango TV international App covers

over 195 countries and regions globally with over 140 million downloads and has become an important window for promoting Chinese

culture internationally. Third creating a lot of excellent works. Our central theme documentaries have won the “China News Award”

for six consecutive years. Six works including “China S3” and “Finding Beyond Time and Space” were selected as excellent domesticdocumentaries by the SARFT in 2023. We have produced many works featuring Hunan such as “Hunan Tourism DevelopmentConference” “Taste of Hunan” and “A Travelogue of Hunan” to spread Hunan culture and tell stories of Hunan.

2. Build a hub for long video creation and production and continuously strengthen the ecosystem moat for Mango contents

We persist in the long-termism and futurism ensure that content innovation holds high ideological banners deepens cultural roots

respects market rules and complies with the laws of new media communication and vigorously build a talent and innovation hub for

domestic long video content creation and production. With 56 variety show production teams 22 film and TV drama production teams

and 36 strategic studios we have further consolidated our advantages in high-level innovative and diversified content supply.According to Enlightent in 2023 the effective all-network playback volume of Mango TV’s full-length variety shows increased by

31% year on year and the effective all-network playback volume of its full-length TV dramas and series increased by 46% year on

year both ranking first in terms of growth rate in the long video industry.We have further consolidated the leading position of our variety shows in the industry. During the Reporting Period Mango TV

released over 100 variety shows leading the industry in new releases exclusive broadcasts and innovation rates. Eight of the top ten

most popular variety shows on Douban belong to Mango TV. Our popular variety shows include “Ride the Wind 2023” “Call Me byFire S3” “Infinity and Beyond 2023” “Divas Hit the Road” “Who’s the Murderer S8” and other generation N variety shows and

“Happy Friends” “SHErlock” and “Happy Adults” and other “small and beautiful” novelty variety shows that formed the “Douban 9Points Club of Mango Variety Shows”. In addition works such as “Chinese Village Flowers” and “Mom & Daughter” stood out from

over 700 ideas in the “Mango 1% Creative Finals” laying a solid foundation for future popular variety shows.We have continuously enhanced the supply of premium films and TV dramas innovated in the organizational structure and

incentive mechanisms for the film and TV drama production teams established the drama evaluation and quality control center

introduced super studios launched the “Xinmang Program S” and the super partner system for films and TV dramas focused on the

development of top-tier TV dramas and series enhanced the supply capacity of high-quality TV dramas and series and significantly

improved our content quality. During the Reporting Period Mango TV released 128 TV dramas and series in total including key films

and TV dramas and micro and short dramas under the “Damang Program”. “Meet Yourself” “Fake It Till You Make It” and “TheForerunner” were selected by the SARFT into the “Selected Chinese TV Dramas and Series 2023”. Mango TV and Douyin have jointly

launched the “Premium Short Drama Support Program” under which the parties will focus on the joint creation of short dramas and

explore new opportunities for cooperation in long and short videos. “Changing Wind and Moon” had its premiere on the Hunan Satellite

TV becoming the first domestic micro and short drama broadcast on a satellite TV station for the first time. In 2024 we will release

over 80 films and TV dramas and 100 micro and short dramas which will further enhance our ability to supply high-quality TV dramas

and series.

3. Overcome challenges for the core business and bring the membership business into a new stage of high-quality developmentMembership advertising and operator businesses are important monetization channels for long video contents and form the “threepillars” of Mango TV Internet video business. During the Reporting Period our membership business grew rapidly and continuously

increased its proportion in the total operating revenue; our advertising business stabilized the fundamentals and continued to improve;

and our operator business continued to maintain steady growth. These segments are structurally complementary to one another making

our business development more healthy and resilient.The number of our members reached a new high. As of the end of 2023 Mango TV had 66.53 million active members. In 2023

our membership revenue was RMB4.315 billion an increase of 10.23% year on year where the membership revenue in the fourth

quarter increased by 35.64% year on year. Our membership business is developing at an accelerated pace again and the growth of

members and input of contents have formed a virtuous cycle and positive feedback loop. During the Reporting Period Mango TV

focused on both content and channels attracted and retained users with premium and exclusive contents actively expanded the high-

quality cross-industry channels; advanced the four themed membership brand season events namely “Chasing Wind Season” “JoyfulSeason” “Graduation Season” and “Co-branded Season” in an orderly manner and increased the ARPPU of members in a refined

manner; innovated in and upgraded membership entitlements and offered over 300 kinds of membership benefits. Our member

customized programs set industrial benchmarks with the average input-output ratio of “Happy Adults” “Forest Evolution Theory”

“God Training Camp” and other member customized innovative IPs reaching 286%.

14Our advertising revenue has rebounded rapidly. In 2023 our advertising revenue was RMB3.532 billion a decrease of 11.57%

year on year; however the drop narrowed as compared to the first half of 2023 and the advertising revenue in the fourth quarterincreased by 15.95% year on year marking that the annual growth has turned from negative to positive. The top-tier IPs such as “Ridethe Wind 2023” and “Call Me by Fire S3” stabilized the variety show advertising market while “Meet Yourself” and “The Love ofLove” set new records in terms of advertising revenue and the number of project partners achieved by our TV dramas and series within

the past three years. Benefiting from the ecosystem advantages of multi-platform convergence and the continuously growing user base

the platform value of Mango TV in brand marketing was further highlighted. During the Reporting Period we solicited a number of

top-tier brand customers in Internet platform liquor food and other key sectors and now one third of our customers are new customers.Our operator business has maintained steady growth. In 2023 our operating revenue from the operator business was RMB2.767

billion an increase of 10.27% year on year. In the business operation outside Hunan we leveraged the cooperation with operators

especially the strategic partnership with China Mobile improved the online release rate and recommendation rate of large-screen

contents and achieved full coverage of basic and value-added services. In the business operation in Hunan we promoted growth of

revenues from the IPTV business through innovative operations optimization of offline incentive policies and focus on key areas

released the “Hunan Smart Education Platform App for TV” and created a lot of innovative special courses that attracted over 6 million

users. In addition we launched the innovative “Crowdfunding Plan” based on the large-screen treasure bowl platform under which

the family sitcom entitled “Happy Family” was broadcast jointly on IPTVs of 16 provinces and cities.

4. Fully leverage the synergy effect and create a diversified and deeply converged Mango ecosystem

During the Reporting Period we completed the acquisition of Golden Eagle Cartoon pursued a unique development path for

Xiaomang E-commerce and upgraded our “Mango TV + Hunan Satellite TV” double platforms media convergence model to “MangoTV + Hunan Satellite TV + Golden Eagle Cartoon + Xiaomang E-commerce” four platforms model. On the basis of consolidating

Mango TV Internet video business the four platforms have fully integrated content creation production and operation leveraged the

effects of business synergy and resource integration built “1+1+1+1+N” Mango ecosystem with richer contents continuously

improved the monetization chain for our content ecosystem and values and pursued more diversified business development paths.The acquisition of Golden Eagle Cartoon as a top-tier domestic parent-child content platform was an important step made by us

in enriching our all-media communication ecosystem which will further consolidate our content moat in the parent-child field and

produce a comprehensive synergy effect with our existing business in program innovation marketing resources venture capital

investment in cartoons research-based learning parks derivative products etc. During the Reporting Period Golden Eagle Cartoon

focused its efforts on building content barriers for children’s programs and parent-child ecosystem explored new parent-child

consumption models focused on content operation brand marketing development of derivative products and offline amusement parks

etc. and made a net profit of RMB63473700 successfully fulfilling the performance commitment for the year 2023. Xiaomang E-

commerce leveraged the premium content IPs and artist resources of Mango ecosystem focused on core user groups explored new

commercial models for contents and maintained the momentum of rapid growth with GMV exceeding RMB10 billion. The GMV of

our first self-operated fashion brand “No. 1” exceeded RMB270 million achieving the transition from single products to a brand and

providing a more commercially valuable growth model for partner brands. “A Journey for No.1” the first customized variety show

released by Xiaomang received a Douban rating of over 9 points realized an in-depth convergence of content and e-commerce and

achieved a win-win situation for the program and product sales. EE-Media fully leveraged its advantages as an artist agency enhanced

training of new talents optimized the artist structure and actively explored the new growth space for artist agency and music copyright

businesses. Happigo fully leveraged the advantages of Mango ecosystem developed high-quality products on the supply chain and

created multiple categories of self-owned brands.

5. Promote in-depth convergence of technology and content and actively explore the application of cutting-edge technologies

We attach great importance to technology research development and application fully leverage rich application scenarios and

actively explore the application of AI and other cutting-edge technologies and innovation in types of operation. We have released

more than 40 AI products and widely applied AI technologies in media operation advertisement placement member interaction video

edition content production and other business scenarios. In order to increase the recommendation conversion effect we have released

an AI multimodal retrieval and creation engine which enables interactive retrieval of massive contents within seconds through vector

engine and dialogue model. In order to reduce costs and increase efficiency we have used AI-generated short videos in variety shows

such as “Call Me by Fire” and “Run for Time” produced over 1 million short videos and significantly reduced the content promotion

costs and platform customer acquisition costs. In order to improve our operational efficiency we have developed the AIGC HUB

application platform which integrates AIGC capabilities in text image and speech modalities such as domain models AI drawing and

voice generation. We have innovated in business models cooperated with large model companies to launch AI character dialogue

products linked AI large anthropomorphic models with popular IPs such as “Young Blood 2” and “The Love of Love” created AI

character chat scenarios tried new monetization modes and increased user adhesion and activity. In addition we have also explored

the in-depth integration of AI and content and widely used AIGC audio dramas AIGC copies and AIGC posters.

2. Revenues and costs

(1) Components of operating revenue

Overall situation of operating revenue

In RMB

20232022

Proportion to Proportion to Y/Y % change

Amount Amount

operating revenue operating revenue

15Total operating

14628016301.84100%13976774034.92100%4.66%

revenue

By segment

Mango TV

Internet video 10614030327.62 72.56% 10417661860.99 74.54% 1.88%

business

New media

interactive

entertainment 1149941038.24 7.86% 1390868611.95 9.95% -17.32%

content production

and operation

Content e-

2822529201.3819.30%2135993003.6815.28%32.14%

commerce

Others 41515734.60 0.28% 32250558.30 0.23% 28.73%

By product

Mango TV

Internet video 10614030327.62 72.56% 10417661860.99 74.54% 1.88%

business

New media

interactive

entertainment 1149941038.24 7.86% 1390868611.95 9.95% -17.32%

content production

and operation

Content e-

2822529201.3819.30%2135993003.6815.28%32.14%

commerce

Others 41515734.60 0.28% 32250558.30 0.23% 28.73%

By region

Hunan 3558155682.72 24.32% 3361013169.27 27.51% 5.87%

Outside Hunan 11069860619.12 75.68% 10615760865.65 72.49% 4.28%

By sales model

Sale 14628016301.84 100.00% 13976774034.92 100.00% 4.66%

(2) Segments products regions or sales models representing more than 10% of operating revenue or profit

□Applicable □N/A

In RMB

Y/Y % change Y/Y % change

Gross Y/Y % change

Operating revenue Operating cost in operating in operating

margin in gross margin

revenue cost

By segment

Mango TV

Internet video 10614030327.62 6229223213.61 41.31% 1.88% 1.52% 0.21%

business

New media

interactive

entertainment 1149941038.24 855899278.24 25.57% -17.32% -18.11% 0.71%

content

production

Content e-

2822529201.382682738552.414.95%32.14%34.17%-1.44%

commerce

Others 41515734.60 35145850.68 15.34% 28.73% 26.86% 1.25%

By product

Mango TV

Internet video 10614030327.62 6229223213.61 41.31% 1.88% 1.52% 0.21%

business

16New media

interactive

entertainment 1149941038.24 855899278.24 25.57% -17.32% -18.11% 0.71%

content

production

Content e-

2822529201.382682738552.414.95%32.14%34.17%-1.44%

commerce

Others 41515734.60 35145850.68 15.34% 28.73% 26.86% 1.25%

By region

Hunan 3558155682.72 2383287108.23 33.02% 5.87% 8.58% -1.68%

Outside Hunan 11069860619.12 7419719786.71 32.97% 4.28% 5.80% -0.96%

By sales model

Sale 14628016301.84 9803006894.94 32.98% 4.66% 6.46% -1.13%

In case of any adjustment to the statistic scale for main business data the main business data of the most recent reporting period as

adjusted according to the statistic scale applied at the end of the current reporting period:

□Applicable □N/A

(3) Whether the Company’s revenue from sale of tangible goods is higher than the revenue from labor service

□Yes □No

(4) Performance of material sales contracts and material purchase contracts of the Company as of the end of the Reporting

Period

□Applicable □N/A

(5) Components of operating cost

Classification of segments and products:

In RMB

20232022

Proportion

Proportion Y/Y %

Segment Item to

Amount Amount to operating change

operating

revenue

revenue

Mango TV

Internet video

Internet video 5795180476.82 59.12% 5771468065.50 62.68% 0.41%

business

business

Mango TV

Operator

Internet video 434042736.79 4.43% 364240806.41 3.96% 19.16%

business

business

New media

interactive

Copyright and

entertainment 692872785.79 7.07% 842065761.90 9.14% -17.72%

production costs

content

production

New media

interactive Employee

entertainment remuneration 163026492.45 1.66% 203064774.92 2.21% -19.72%

content and others

production

Content e- Content e-

2682738552.4127.37%1999535703.0621.72%34.17%

commerce commerce

Others Others 35145850.68 0.36% 27705011.28 0.30% 26.86%

17In RMB

20232022

Proportion Proportion Y/Y %

Product Item

Amount to operating Amount to operating change

revenue revenue

Mango TV

Internet video

Internet video 5795180476.82 59.12% 5771468065.50 62.68% 0.41%

business

business

Mango TV

Operator

Internet video 434042736.79 4.43% 364240806.41 3.96% 19.16%

business

business

New media

interactive

Copyright and

entertainment 692872785.79 7.07% 842065761.90 9.14% -17.72%

production costs

content

production

New media

interactive Employee

entertainment remuneration 163026492.45 1.66% 203064774.92 2.21% -19.72%

content and others

production

Content e- Content e-

2682738552.4127.37%1999535703.0621.72%34.17%

commerce commerce

Others Others 35145850.68 0.36% 27705011.28 0.30% 26.86%

Analysis: None.

(6) Changes in the scope of consolidation during the Reporting Period

□Yes □No

During the Reporting Period we acquired Golden Eagle Cartoon through a business combination involving entities under common

control and deregistered Beijing Happy Mango Culture Media Co. Ltd. See “IX. Changes in Scope of Consolidation” under “SectionX Financial Report” for details.

(7) Material changes or adjustments in respect of business products or services of the Company during the Reporting Period

□Applicable □N/A

(8) Major customers and suppliers

Major customers of the Company:

Aggregate sales revenue from top 5 customers (RMB) 4739829701.56

Proportion of aggregate sales revenue from top 5 customers to

32.40%

annual sales revenue

Proportion of aggregate sales revenue from related parties

27.21%

among top 5 customers to annual sales revenue

Particulars of top 5 customers:

Proportion to annual sales

No. Name of customer Sales revenue (RMB)

revenue

1 Customer 1 2699571918.02 18.45%

2 Customer 2 1279986808.00 8.75%

3 Customer 3 262758232.01 1.80%

4 Customer 4 262298381.58 1.79%

5 Customer 5 235214361.95 1.61%

Total -- 4739829701.56 32.40%

Other information of major customers:

18□Applicable □N/A

Major suppliers of the Company:

Aggregate purchase amount from top 5 suppliers (RMB) 2241153433.69

Proportion of aggregate purchase amount from top 5 suppliers

22.86%

to annual purchase cost

Proportion of aggregate purchase amount from related parties

12.13%

among top 5 suppliers to annual purchase cost

Particulars of top 5 suppliers:

Proportion to annual purchase

No. Name of supplier Purchase amount (RMB)

cost

1 Supplier 1 1189151288.20 12.13%

2 Supplier 2 291572413.80 2.97%

3 Supplier 3 283018868.78 2.89%

4 Supplier 4 260377358.49 2.66%

5 Supplier 5 217033504.42 2.21%

Total -- 2241153433.69 22.86%

Other information of major suppliers:

□Applicable □N/A.

3. Expenses

In RMB

2023 2022 Y/Y % change Reason of significant change

Primarily due to an increase in channel

Selling expenses 2260065273.97 2244824328.98 0.68%

development expenses

Administrative

612009007.33 646502018.06 -5.34% Primarily due to a decrease in labor costs

expenses

Financial

-147667394.09 -142444802.89 3.67% Primarily due to an increase in interest income

expenses

Primarily due to an increase in the labor costs

R&D expenses 278728244.78 257607242.41 8.20%

of R&D personnel

194. R&D expenses

□Applicable □N/A

Expected effect on the future

Description of major R&D project Purpose Progress Objectives

development of the Company

Mango TV basic service platform

module: the research development

and building of the business

experimental platform highly

reliable gateway Mango coordinated

system and other products have been

completed; audio-visual media

business application innovation

platform: the research development

and building of the rich media

advertising Mango digital collection

platform and other products have The project can support the ever-

been completed; VR application expanding demands for content

research platform: the research To improve the security of platform production and distribution meet the

development and building of the XR data contents and other information growing needs of users for the

Use proprietary technologies to build

live streaming platform VR and enhance R&D efficiency; development of audio-visual

a basic service platform an

interactive content platform and other provide efficient and powerful tools experience help Mango TV to

intelligent content production and

products have been completed; for smart content production refined enhance its image in the industry and

Mango TV smart audio-visual media processing platform a content

Guangmang cloud production and operation and multi-channel its soft power and build a media

service platform distribution platform an application

broadcasting platform: using the distribution support “4K+5G” high- technology moat. It is the only way to

service platform and other systems

advanced design concept based on definition intelligent production reduce costs and improve efficiency

and form a domestic leading smart

the “end-edge-cloud” coordinated explore VR and other cutting-edge in operation and enhance user

audio-visual media service platform.treatment the directional research technology scenarios and realize their experience and is of great

and development of cloud production industrialization. significance for the Company to

and broadcast process and maintain its core competitiveness in

management model have been the future.completed which will improve the

production efficiency of ultra HD

video contents; new infrastructure

platform for content production

management: the research

development and building of the

cloud content review system media

structural platform and other

products have been completed;

audio-visual media refined operation

support platform: the research

20development and building of the

intelligent customer service system

Mango instant messaging service and

other products have been completed.Based on the home-made cloud-

native virtual production platform

mainly comprising virtual production

collection system supercomputing

The project focuses on the

rendering system and lightweighttechnology field of “ultra HD videospace data collection system inAccording to the software and algorithms” and is an important

The Phase I development of virtual combination with cloud-native

hardware configurations for video attempt in the localization of virtual

production based on supercomputing supercomputing virtual production

supercomputing integrate camera shooting technology

platform development and SaaS and PaaS services to develop a

equipment cloud real-time rendering supercomputing platform and other

deployment of virtual asset library cloud-native supercomputing-based

Video supercomputing-based virtual engine spatial positioning data advanced technologies. The project

and related function test report have home-made virtual production SaaS

shooting and production collection and virtual standard will not only reduce the content

been completed; and three patent platform that supports the production

production system with VFX basic production costs of Happy Sunshine

applications in connection with the of program contents; and based on

production workflow and build and is an important measure to

project have been submitted which XR shooting technology to develop

cloud-native virtual production SaaS develop “culture + technology” and

are under review. virtual space lighting calibration

service. create fine contents incorporating

algorithms for integrated lighting

mainstream values and cutting-edge

linkage LED texture detection

video technologies.algorithms for LED screen display

and ROI (Region of Interest) ultra

HD video optimization algorithms

for video rendering.AI technology is an advantage of

Happy Sunshine technology team

To increase the number of daily and the focus of future cutting-edge

The anthropomorphic AI project will

Phase I development: Release active users and members of the technologies. In light of the new

link the new ChatGPT technology

derivative characters of Young Blood platform expand the boundary of AI reform of the industry and new

with Mango’s specialty contents and

2 complete the deployment of AI capability enable platform scenarios impact on user habits brought about

Research and development of based on large-scale drama training

interactive capability and link with other than content build “IP+” by ChatGPT the project intends to

anthropomorphic AI project create AI characters for popular TV

Mango large-scale AI training camp ecosystem model explore AI take the lead in releasing interactive

dramas and series and assign

to accumulate technologies for Phase response experience on user side and AI products in the industry and

personality settings to such

II large-scale development. reserve technologies for product produce positive results in the

characters.upgrading. production-research integration of AI

technology user attraction retention

and conversion among others.Particulars of R&D personnel:

2023 2022 Y/Y % change

Number of R&D personnel 694 604 14.90%

21Proportion of R&D personnel 15.78% 13.62% 2.16%

Education background of R&D personnel

Undergraduates

51844516.40%

Masters

1119714.43%

Others

65624.84%

Ages of R&D personnel

Below 30

1851802.78%

45338318.28%

Others

564136.59%

Amount of R&D expenses and proportion of R&D expenses to operating revenue in the past three years:

202320222021

Amount of R&D expenses

418744155.24364132943.53429785963.31

(RMB)

Proportion of R&D expenses

2.86%2.61%2.72%

to operating revenue

Amount of R&D expenses

140015910.46106525701.1297370501.74

capitalized (RMB)

Proportion of capitalized

R&D expenses to total R&D 33.44% 29.25% 22.66%

expenses

Proportion of R&D expenses

capitalized to the net profit of 4.03% 5.90% 4.48%

the current period

22Analysis of the cause and effect of significant change in the composition of R&D personnel:

□Applicable □N/A

Analysis of the cause of significant change in the proportion of R&D expenses to operating revenue compared with the preceding

year:

□Applicable □N/A

Analysis of the cause and reasonableness of significant change in the proportion of R&D expenses capitalized:

□Applicable □N/A

5. Cash flows

In RMB

Item 2023 2022 Y/Y % change

Subtotal of cash provided by

14518104991.7613574285652.076.95%

operating activities

Subtotal of cash used in

13434331735.0512952481952.633.72%

operating activities

Net cash flows from operating

1083773256.71621803699.4474.30%

activities

Subtotal of cash provided by

7219501306.5814218842067.23-49.23%

investment activities

Subtotal of cash used in

6463056173.9213561887809.91-52.34%

investment activities

Net cash flows from investment

756445132.66656954257.3215.14%

activities

Subtotal of cash provided by

679622361.641923325434.53-64.66%

financing activities

Subtotal of cash used in

997937817.51391530893.80154.88%

financing activities

Net cash flows from financing

-318315455.871531794540.73-120.78%

activities

Net increase in cash and cash

1521997270.652811010904.25-45.86%

equivalents

Analysis of the main causes of significant changes in the relevant data:

□Applicable □N/A

The net cash flow from operating activities increased by 74.30% year on year primarily due to an increase in receipts from operating

items in the current year.The net cash flow from investment activities increased by 15.14% year on year primarily due to the amount of bank wealth management

products redeemed exceeding the amount of bank wealth management products purchased in the current year.The net cash flow from financing activities decreased by 120.78% year on year primarily due to a decrease in the discounted notes not

qualified for derecognition resulting in a decrease in cash flows provided by financing activities from the last year and an increase in

dividends in the current year resulting in an increase in cash flows used in financing activities from the last year.Analysis of the significant difference between net cash flows from operating activities during the Reporting Period and net profit in

current year:

□Applicable □N/A

Primarily because the deferred tax expenses recognized in the current year did not generate cash flows.V. Analysis of non-main business

□Applicable □N/A

In RMB

Proportion to Whether or not

Amount Main source

total profit sustainable

Investment income 73236767.58 3.96% Income on bank wealth No

23management products

Impairment losses on

Impairment loss on assets -100061039.58 -5.41% accounts receivable and No

inventories

Income from rights

Non-operating revenue 35532003.82 1.92% No

protection actions

Expenses in connection

Non-operating expenses 4005884.29 0.22% No

with indemnity

VI. Analysis of assets and liabilities

1. Material changes in the components of assets

In RMB

End of 2023 Beginning of 2023 Reason of

Change significant

Proportion to Proportion to

Amount Amount change

total assets total assets

Cash and bank

11882208257.6037.81%10369682100.1934.82%2.99%

balances

Accounts

3496523370.1511.13%3239435040.4010.88%0.25%

receivable

Contract assets 838691849.14 2.67% 929403936.51 3.12% -0.45%

Inventories 1717435689.33 5.47% 1608818863.16 5.40% 0.07%

Investment

81084052.230.26%83381033.600.28%-0.02%

properties

Long-term

equity 4123864.73 0.01% -0.01%

investment

Fixed assets 142419568.37 0.45% 173715579.21 0.58% -0.13%

Right-of-use

228587413.610.73%180794786.220.61%0.12%

assets

Primarily due

to the maturity

Short-term of discounted

33781325.600.11%1057932476.803.55%-3.44%

borrowings notes not

qualified for

derecognition

Contract

1223382815.573.89%1095959210.883.68%0.21%

liabilities

Lease

151809003.340.48%138344104.720.46%0.02%

liabilities

Analysis of high proportion of overseas assets:

□Applicable □N/A

2. Assets and liabilities at fair value

□Applicable □N/A

In RMB0’000

Aggregate Impairment

Gain or Amount

changes loss Amount sold

loss on acquired in

Opening in fair recognized in the Other Closing

Item changes the

balance value in the Reporting changes balance

in fair Reporting

recorded current Period

value Period

in equity period

Financial assets

1. Financial

269500.00547800.00712100.00105200.00

assets held

24for trading

(excluding

derivative

financial

assets)

2. Accounts

receivable 4905.44 64934.04 69839.49

financing

Subtotal 274405.44 547800.00 712100.00 64934.04 175039.49

Financial

0.000.00

liabilities

Other changes:

Other changes of receivables financing are primarily due to changes in discounting endorsement or acceptance upon maturity of

banker’s acceptance bills.Whether there’s any material change in the measurement properties of main assets of the Company during the Reporting Period

□Yes □No

3. Encumbrances on assets as of the end of the Reporting Period

As of the end of the Reporting Period the total amount of restricted assets was RMB49811900 where the cash and bank balances

included RMB12942100 subject to judicial freeze RMB995100 of third-party platform deposits RMB954700 of other deposits and

the amount of endorsed or discounted but not matured bills was RMB34920000.VII. Analysis of investments

1. Overall situation

□Applicable □N/A

Amount of investment in 2023 (RMB) Amount of investment in 2022 (RMB) Y/Y % change

834795100.002880000.0028885.94%

2. Major equity investments acquired during the Reporting Period

□Applicable □N/A

25In RMB

Investment

Whether or not Date of

Main Method of Amount of Shareholding Source of Term of Status as of the income/ loss in Disclosure

Investee Partner Product type Expected income involved in any disclosure

business investment investment percentage funds investment balance sheet date the Reporting index (if any)

litigation (if any)

Period

Announcement

of Acquisition

of 100%

Shares of

Hunan Hunan Golden

Completed business

Golden Eagle Cartoon

Production combination

Eagle Self-owned July 26 Media Co.of contents Acquisition 834795100.00 100.00% N/A N/A Equity involving entities 834795100.00 63473693.23 No

Cartoon funds 2023 Ltd. by Cash

for youth under common

Media and Related-

control

Co. Ltd. party

Transaction

disclosed on

www.cninfo.co

m.cn

Total -- -- 834795100.00 -- -- -- -- -- -- 834795100.00 63473693.23 -- -- --

3. Major non-equity investments that have not yet been completed in the Reporting Period

□Applicable □N/A

4. Investment in financial assets

(1) Securities investment

□Applicable □N/A

No such case during the Reporting Period.

(2) Derivative investment

□Applicable □N/A

No such case during the Reporting Period.

5. Use of offering proceeds

□Applicable □N/A

26(1) Description of use of offering proceeds

□Applicable □N/A

In RMB 0’000

Total

amount of Aggregate Total

Percentage

offering amount of amount of

of offering

proceeds offering offering

Total amount of proceeds Purpose and

Method Total Net Aggregate amount of the proceeds Total amount of proceeds

Year of offering proceeds the whereabouts of

of offering offering offering proceeds purpose of the unused offering that has

offering used in the purpose of unused offering

offering proceeds proceeds already used which was purpose proceeds remained

Reporting Period which has proceeds

changed in of which unused for

been

the has been more than

changed

Reporting changed two years

Period

Deposited in the

dedicated account

of offering

proceeds and

used for the

purchase of cash

Private

management

2019 share 200000 198270.07 22450 130669.45 0 0 0.00% 67600.62 67600.62

products;

offering

wherein

RMB368805500

has been used to

permanently

replenish the

working capital

Deposited in the

Share dedicated account

offering of offering

2021 to 450000 448579.21 116615.39 297340.12 0 0 0.00% 151239.09 proceeds and 151239.09

specific purchase cash

persons management

products

Total -- 650000 646849.28 139065.39 428009.57 0 0 0.00% 218839.71 -- 218839.71

Description of use of offering proceeds

During the Reporting Period the total amount of offering proceeds used by us was RMB1390653900. As of December 31 2023 the aggregate amount of offering proceeds used by us was

RMB4280095700 and RMB390599900 (including interest) was used to permanently replenish the working capital. The balance of the dedicated account of offering proceeds was

RMB2090065200 including RMB1797797200 of principal and RMB292268000 of interest income of which RMB224065200 was deposited in the dedicated account of offering

proceeds and RMB1866000000 of idle offering proceeds was used to purchase cash management products.

27(2) Committed fund-raising investment projects

□Applicable □N/A

In RMB0’000

Whether

Aggregate

the Progress of

amount

project Total Amount investment Income Aggregate Whether there’s

Committed Total already Date that the Whether the

has investment invested in as of the earned in income as of any significant

investment project committed invested as project is project has

been amount as the end of the the the end of the change in the

and use of over- investment of the end ready for its produced the

changed adjusted Reporting Reporting Reporting Reporting feasibility of

raised funds amount of the intended use desired result

or (1) Period Period (3) Period Period the project

Reporting

partially =(2)/(1)

Period (2)

changed

Committed investment project

Mango TV

copyright pool No 148674 148674 22450 117992 79.36% -4168.57 24291.72 N/A No

expansion project

Mango TV cloud

storage and multi-

No 49558 49558 12677.45 25.58%1 2 N/A No

screen broadcast

platform project

Content resource

pool expansion No 398587.78 398587.78 107899.02 283417.38 71.11% 111095.48 289816.29 Yes No

project

Mango TV smart

audio & video

No 49991.43 49991.43 8716.37 13922.74 27.85% 3 N/A No

media service

platform project

Subtotal -- 646811.21 646811.21 139065.39 428009.57 -- -- 106926.91 314108.01 -- --

Use of over-raised funds

None

Total -- 646811.21 646811.21 139065.39 428009.57 -- -- 106926.91 314108.01 -- --

Explain the Mango TV cloud storage and multi-screen broadcast platform project: The project was planned in 2017 and implemented in 2019 after receipt of the relevant offering

situation and proceeds. However within these two years the technical environment changed greatly and the technical requirements also changed. Therefore after receipt of the relevant

reason for failure offering proceeds we adjusted the fund use plan resulting in a significant deviation of the fund use progress from the fund use plan originally disclosed. Pursuant to the

to achieve the Guide on Operational Compliance for Companies Listed on the ChiNext Board of the Shenzhen Stock Exchange we proposed to adjust the fund use plan in respect of

planned progress the cloud storage and multi-screen broadcast platform project by extending the fund use period to 2021. The fund use plan in respect of Mango TV cloud storage and

and desired result multi-screen broadcast platform project was adjusted pursuant to the Proposal for Adjusting the Fund Use Plan in Respect of Certain Fund-raising Investment Project

by item (including adopted at the 29th meeting of the 3rd Board of Directors of the Company on April 23 2020 and further adjusted pursuant to the Proposal for Adjusting the Fund Use Plan

the reason for in Respect of Certain Fund-raising Investment Project adopted at the 35th meeting of the 3rd Board of Directors on January 26 2021.choosing “N/A” Mango TV smart audio & video media service platform project: The planning of the project was completed in 2020 the fundraising of the project was completed in 2021for “Whether the the project was officially implemented in 2022 and the construction of the project is planned to be completed in 2023. During the implementation of the project certainproject has changes have taken place in both the external market and the technical environment: On the one hand due to the impact of travel conditions in 2022 there was a certain

produced the lag in business negotiation contract signing and other procedures required for the procurement of software and hardware in this project; meanwhile the frequency of

28desired result”) offline communication and field follow-up projects of the R&D team has decreased which to some extent has affected the progress of project construction. On the other

hand in the background of reducing costs and increasing efficiency Mango TV has suspended the development of heavy-asset projects after multiple reviews of project

implementation and R&D focuses; it has prioritized the development of light-asset projects mainly with human resources and a small quantity of software and hardware.With the transfer and adjustment of R&D resources and strategies the overall implementation progress of the project has certain changes. According to the evaluation it

is expected that the project needs to be postponed for one year on the basis of the original project construction schedule; to be specific all construction contents under the

project plan will be completed by the end of 2024. The Company held the 15th meeting of the 4th Board of Directors of the Company on April 20 2023 reviewing and

adopting the Proposal for Adjusting the Fund Use Plan in Respect of Fund Raised for Mango TV Smart Audio & Video Media Service Platform Project to adjust the fund

use plan of the Mango TV smart audio & video media service platform project. The Company’s independent directors and the Board of Supervisors expressed their

consent to the above proposal and the sponsor issued a verification opinion. Due to the impact of the operational strategy of cost reduction and efficiency enhancement

and supply of hardware and software resources in the market in order to adapt to the construction progress of the smart audio-visual project the Company held the 20th

meeting of the 4th Board of Directors and the 18th meeting of the 4th Board of Supervisors of the Company on April 18 2024 reviewing and adopting the Proposal for

Adjusting the Fund Use Plan in Respect of Fund Raised for Mango TV Smart Audio & Video Media Service Platform Project to adjust the fund use plan of the Mango

TV smart audio & video media service platform project and extend the construction period of the project to December 31 2025. A special meeting of independent

directors of the Company reviewed and adopted the above proposal and the sponsor issued a verification opinion.Content resource pool expansion project: The Company held the 18th meeting of the 4th Board of Directors on August 17 2023 reviewing and adopting the Proposal on

Adjusting the Use Plan of Funds Raised by the Content Resource Pool Expansion Project to adjust the fund use plan of the content resource pool expansion project and

extend the project construction period to December 31 2025. The Company’s independent directors and the Board of Supervisors expressed their consent to the above

proposal. The actual use of funds raised by the project is slower than the planned. It is mainly because under the impact of the overall development trend of the industry

the Company deeply cultivated the quality of contents pursued high-quality development and made content production more cautious than planned. Besides the

Company added a new bill acceptance method for content payment which also delayed the actual payment of raised funds in the project to a certain extent.Reason of

significant change

None

in the feasibility of

the project

Amount and use of

over-raised funds

N/A

and progress of

use thereof

Change in the

place of the fund-

N/A

raising investment

project

Adjustment of the Applicable

method of

implementation of

the fund-raising

investment project Occurred in previous years

29Mango TV copyright pool expansion project: As of December 31 2020 we purchased and released on Hunan TV 5 key TV series as scheduled. The progress of investment

and development meets expectations. The amount of actual investment being lower than the planned amount of investment was primarily due to changes in industry

policies as a result of which the prices for content copyright have returned to the reasonable level so the price for TV series per part actually paid by us was lower than

the estimated amount. On November 28 2021 the Company held the 7th meeting of the 4th Board of Directors considering and approving the Proposal for Adjusting the

Method of Implementation and Fund Use Plan in Respect of Certain Fund-raising Investment Project pursuant to which the method of implementation and fund use plan

in respect of the Mango TV copyright pool expansion project were adjusted. The Company’s independent directors and Board of Supervisors expressed their consent to

the above proposal and the independent financial advisor issued a verification opinion. On December 21 2021 the above proposal was reviewed and approved at the

Company’s 2nd extraordinary general meeting of shareholders in 2021. The remaining offering proceeds were used to purchase exclusive Internet copyright of teleplays.On April 18 2024 the 20th meeting of the 4th Board of Directors and the 18th meeting of the 4th Board of Supervisors of the Company reviewed and adopted the Proposal

on Adjusting the Implementation Method and Fund Use Plan of Mango TV Copyright Pool Expansion Project. Due to commercial negotiations scheduling planning and

other reasons the films and TV dramas that the Company intended to purchase were subject to scheduling adjustment repertoire change etc. According to the actual

implementation of the project the Company adjusted the implementation method and fund use plan of the Mango TV copyright pool expansion project adjusted part of

the films and TV dramas to be purchased and extended the project construction period to December 31 2026. A special meeting of the Company’s independent directors

reviewed and adopted the above proposal and the sponsor issued the verification opinion. The adjustment matters still need to be submitted to the Company’s general

meeting for review and approval.Content resource pool expansion project: On April 18 2024 the 20th meeting of the 4th Board of Directors and the 18th meeting of the 4th Board of Supervisors of the

Company reviewed and adopted the Proposal on Adjusting the Implementation Method of the Content Resource Pool Expansion Project. Due to commercial negotiations

scheduling planning and other reasons the films and TV dramas that the Company intended to purchase were subject to rescheduling repertoires changes etc. According

to the actual implementation of the project the Company adjusted the implementation method of the content resource pool expansion project and continued to use the

balance of the raised funds of Sub-project 1 “Grade-S Film and TV Drama Copyright Procurement Project” for Sub-project 2 and adjusted the implementation method

of Sub-project 2 “Grade-A Film and TV Drama Copyright Self-production (including Customization) and Procurement Project” into “Grade-S / Grade-A Film and TVDrama Copyright Self-production (including Customization) and Procurement Project”. A special meeting of the Company’s independent directors reviewed and adopted

the above proposal and the sponsor issued a verification opinion. The adjustment matters still shall be submitted to the Company's general meeting for review and

approval.Applicable

On August 25 2020 the 31th meeting of the 3rd Board of Directors considered and adopted the Proposal Regarding Payment by the Wholly-owned Subsidiary of Funds

Invested in the Fund-Raising Investment Project with Banker’s Acceptance Bills and Replacement of the Same with the Offering Proceeds approving that Happy

Sunshine a wholly-owned subsidiary of the Company may use banker’s acceptance bills as the case may be during project investment with the fund raised and

replacement of the same with the offering proceeds by transferring the amount actually paid from the special account of offering proceeds to the account of owned funds

of the Company. The independent directors and the Board of Supervisors of the Company expressed their consent to the above proposal and the independent financial

Funds pre-invested advisor issued a verification opinion.th

in the investment On September 23 2021 the 5 meeting of the 4

th Board of Directors considered and adopted the Proposal for Replacing the Self-raised Funds Pre-invested in the Fund-

project and Raising Investment Project and Funds Used to Pay Part of the Offering Costs with the Offering Proceeds approving the replacement of the funds pre-invested in the

replacement investment project in the amount of RMB703945553.67 and self-raised funds used to pay part of the offering costs in the amount of RMB475471.70 (tax exclusive)

thereof with the offering proceeds. The independent directors and the Board of Supervisors of the Company approved such proposal and the sponsor (CICC) issued a verification

opinion. The Replacement of raised funds pre-invested in the fund-raising investment project was completed as of December 31 2021.On September 23 2021 the 5th meeting of the 4th Board of Directors considered and adopted the Proposal Regarding Payment by the Wholly-owned Subsidiary of Funds

Invested in the Fund-Raising Investment Project with Banker’s Acceptance Bills and Replacement of the Same with the Offering Proceeds approving the payment by

Happy Sunshine our wholly-owned subsidiary of amounts in connection with the fund-raising investment project with banker’s acceptance bills during the period of

fund-raising for such investment project through share offering to specific persons in 2020 and replacement of the same with the offering proceeds by transferring the

amount actually paid from the dedicated account of offering proceeds to the account of owned funds of the Company. The independent directors and the Board of

Supervisors of the Company approved such proposal and the sponsor issued a verification opinion.On April 20 2023 the 15th meeting of the 4th Board of Directors of the Company reviewed and adopted the Proposal Regarding Payment with Commercial Acceptance

30Bills or Otherwise and Replacement of the Same with the Offering Proceeds approving the payment by Happy Sunshine our wholly-owned subsidiary of amounts in

connection with the fund-raising investment project with commercial acceptance bills (including issuance and endorsement of banker’s acceptance bills and commercial

acceptance bills) letters of credit cloud certificates or otherwise and replacement of the same with the offering proceeds by transferring the amount actually paid from

the dedicated account of offering proceeds to the account of owned funds of the Company. The independent directors and the Board of Supervisors of the Company

expressed their consent to and the sponsor and independent financial advisor issued verification opinions on the proposal referred to above.Temporary

replenishment of

working capital N/A

with the unused

offering proceeds

Amount of unused

offering proceeds Applicable

and reason thereof

Mango TV cloud storage and multi-screen broadcast platform project: The project was planned in 2017 and implemented from 2019 when the supporting funds were

raised. The construction of the project was basically completed in 2021 and the project has reached the expected usable state as planned. On April 21 2022 Mango

Excellent Media held the 8th meeting of the 4th Board of Directors reviewing and adopting the Proposal on the Closing of Mango TV Cloud Storage and Multi-screen

Broadcast Platform Project and Permanent Supplementation of Working Capital through with Remaining Raised Funds. The independent directors and the Board of

Supervisors expressed their independent consent. On May 19 2022 the Company held the 2021 annual general meeting of shareholders reviewing and adopting the

proposal referred to above. As of December 31 2022 the special fund-raising account of the Mango TV cloud storage and multi-screen broadcast platform project has

been canceled and the remaining raised funds of RMB390599900 (including interest) has been transferred out to permanently supplementing the working capital. The

reason for the balance is that the fundraising plan of the project was mainly based on investments in hardware platforms mainly including the procurement of node

servers switches storage servers and other equipment. During the project construction cloud computing technology developed rapidly and the Company also actively

grasped the opportunity brought about by the technological innovation by purchasing commercial CDNs and cloud resources to replace the original hardware procurement

plan which without affecting the implementation of the project effectively reduced the project cost and enhanced the resource utilization efficiency of the Company.Besides the Company has strengthened its independent innovation capabilities increased expenses for personnel increased self-research efforts insisted on

nationalization and self-development replaced procurement with self-research increase the number of R&D team members from 287 to 558 and had 70 patents from

the project. For this project in addition to the investment with raised funds the Company also spent around RMB164599300 with its own funds in R&D personnel

commercial CDNs cloud resources etc.Purpose and

whereabouts of As of the end of the Reporting Period we used RMB1866000000 of unused offering proceeds to purchase cash management products and deposited the balance of the

unused offering unused offering proceeds in the dedicated account of offering proceeds.proceeds

Problems or other

matters existing in

the use and None

disclosure of

offering proceeds

Note: 1. The project has been completed. 2. The project aims at fully improving users’ experience of watching across the platform no economic benefits will be yielded directly so it is impossible

to calculate the benefits of such project separately. 3. The project aims at improving overall platform-level solutions in ultra HD video interactive video and re-consumable video in the future

accelerating integration of Mango TV in aspects of resources technology services business and flow and no economic benefits will be yielded directly so it is impossible to calculate the benefits

of such project separately.

31Mango Excellent Media Co. Ltd. Annual Report 2023

(3) Changes in the fund-raising investment projects

□Applicable □N/A

There has been no change in the fund-raising investment projects during the Reporting Period.VIII. Sale of material assets and equities

1. Sale of material assets

□Applicable □N/A

No material asset has been sold during the Reporting Period.

2. Sale of material equities

□Applicable □N/A

IX. Analysis of major subsidiaries and associates

□Applicable □N/A

Major subsidiaries and associates representing more than 10% of the net profit of the Company:

In RMB0’000

Company Type of Main Registered Operating Operating

Total assets Net assets Net profit

name company business capital revenue profit

Internet

video

business

operator

Happy

Subsidiary business 24247.00 2952884.03 2019896.78 1167991.37 199154.49 362291.48

Sunshine

and

content

operation

business

Xiaomang

Content e-

E- Subsidiary 7500.00 10781.43 -45394.15 102097.05 -25125.61 -25117.77

commerce

commerce

Golden Production

Eagle Subsidiary of contents 5969.33 39185.59 22767.09 25134.78 5398.53 6347.37

Cartoon for youth

Media

Happigo Subsidiary 40100.00 87759.89 53046.57 181214.57 -4037.44 -3416.94

retail

Artist

agency

business

program

film and

EE-Media Subsidiary TV drama 9000.00 84576.45 57719.32 38011.94 4098.12 4106.94

production

business

and

copyright

business

Subsidiaries acquired or disposed of during the Reporting Period:

□Applicable □N/A

Company name Method of acquisition or disposal of Effect on the production operation and results of the Company

32Mango Excellent Media Co. Ltd. Annual Report 2023

subsidiary during the Reporting taken as a whole

Period

Xiaomang E-commerce originally was a wholly-owned subsidiary

of Happy Sunshine (in the data of major subsidiaries set out above

the data of Happy Sunshine contain the data of Xiaomang E-

Xiaomang E-commerce Internal transfer without consideration commerce between January and June 2023) and was transferred to

the Company in July 2023 without consideration. This transaction

does not have a material effect on the overall production operation

and results of the Company.Business combination involving The effect on the net profit of the Listed Company was

Golden Eagle Cartoon

entities under common control RMB63473700.Particulars of major subsidiaries and associates:

X. Structured entities controlled by the Company

□Applicable □N/A

XI. Prospects for future development of the Company

1. Prospects for future development

The year of 2024 is a critical year for achieving the goals and tasks set forth in the “14th Five-Year Plan” and also a year for us to

tackle thorny problems and accelerate the in-depth media convergence and development. The vast journey knows no bounds setting

sail with faith in the wind. We will always adhere to the guidance of Xi Jinping’s cultural ideology and the important instruction madeby General Secretary Xi Jinping during his inspection of the Malanshan Video Cultural and Creative Park that “the convergence ofcultural and technology has great prospects” firmly focus on “culture + technology” as the key for the future accurately identify

changes adapt scientifically and seek changes proactively. In the new journey of building a mainstream new media group with strong

leadership communication and competitive powers we will strive to provide “Mango answer” to the high-quality media convergence

and development.

(1) Strictly fulfill the missions and duties of a Party-controlled media and state-owned enterprise. We will always uphold the

principle that “media controlled by the Party shall adhere to the leadership of the Party with utter loyalty” adhere to the correct political

direction direction of guidance of public opinion and orientation of values and strengthen the ideological front. Oriented on the 75th

anniversary of the founding of New China and the annual theme of “bright journey of Chinese-style modernization” we will innovate

in mainstream communication build high-quality communication and public opinion positions and create a number of fine programs

to deeply implant the mainstream values in the hearts of the people. We will implement the plan to double the number of users of

Mango TV International APP increase copyright exports continue to promote the internationalization of Mango’s variety show model

and enhance the overseas influence of Mango contents.

(2) Continue to consolidate the advantages of media convergence and development. After a decade of development media

convergence has entered a new stage and a new journey. We will follow up the instructions contained in the important speeches of

General Secretary Xi Jinping on media convergence on the basis of the original double platforms focus more on the strategic synergy

and resource intensification in the convergence of four platforms break down the barriers among new media and between new media

and traditional media ensure that the convergence brings about opportunities values and benefits and achieve new competitive

advantages for high-quality media convergence and development. We will train a group of artists with potentials promote in-depth

convergence of artist agency and content business on the four platforms and form a virtuous cycle.

(3) Work harder and firmly defend the leading position in content innovation. We stick to the people-centered philosophy in

content innovation uphold cultural confidence make innovations on the basis of what has worked in the past refrain from relying on

past experiences and paths anchor fast to super-hit products strive to maintain the absolute lead through ongoing innovations

continuously strengthen the core advantages in long video contents promote the improvement of both “quality” and “quantity” and

firmly defend the absolute leading position of “Mango products” in content innovation. We will consolidate our advantages in the field

of variety show strengthen the combination of content with AI and other new technologies make breakthroughs in the new vertical

contents and ensure that the proportion of innovative programs is not less than 40%. We will increase investments in film and TV

drama business focus on the development of top-tier TV dramas and series enhance the supply capability of premium TV dramas and

series and continue to seek new opportunities in the fields of other contents such as micro and short dramas and cartoons for children.

(4) Make plans before taking actions and promote the steady growth of the core business in an all-round way. General SecretaryXi Jinping pointed out at the Central Economic Work Conference at the end of 2023 that “high-quality development is of paramountimportance in the new era”. In the new journey we will continuously enhance incentives to innovate and develop seize opportunities

forge ahead bravely and unswervingly promote the high-quality development of our core business. Leveraging our rich content

resources we will improve the efficiency of membership operations develop high-quality channel users and achieve rapid user growth

and steady increase in ARPPU; integrate advertising marketing resources of the four platforms adopt differential marketing strategies

target budgets of core customers seize additional budgets from the blue ocean and industry segments; rely on strategic cooperation

steadily improve the online release rate and duration of watch time of operator’s large screen contents; and expand content monetization

chain through content e-commerce offline concerts on-site research-based learning artist agency or otherwise.

(5) Walk faster and accelerate the upgrading of emerging businesses. Golden Eagle Cartoon and Xiaomang E-commerce as

important components of our ecosystem will be fully integrated with the main platform Mango TV in content creation and operations

33Mango Excellent Media Co. Ltd. Annual Report 2023

which will continuously improve our content monetization chain with stronger ecosystem enabling. As a top-tier domestic parent-child

content platform Golden Eagle Cartoon will comprehensively upgrade the Maiji brand deploy offline locations and promote the faster

and steadier growth of the “content + research-based learning + offline + derivative” industry chain. Xiaomang E-commerce will

strengthen platform building and operation focus on core users efficiently and differentially link artists contents products and brands

fully integrate the production advantages and artist resources of Mango ecosystem and build distinctive “super live steaming rooms”.

(6) Driven by technology focus on the development of new quality productive forces in the cultural field. Development of new

quality productive forces in the cultural field requires a dialectical unity of high-quality creativity and advanced technology. Leveraging

our advantages in content creativity and values-based guidance we will explore effective mechanisms for the convergence of culture

and technology and promote the shift of the technical team from a “supporting mindset” to a “leading mindset” to become “creativeengineers” who solve content demands and lead content trends. In reliance on the “Mango large model” we will effectively incorporate

“culture + technology” throughout the entire chain of creativity planning execution data analysis commercialization among others

give full play to the role of new quality productive forces in innovation in business models enhancing user experience and improving

quality and efficiency and create more growth points in the cultural industry.

(7) Make steady progress and continuously consolidate the foundation of high-quality development and governance. We will

fully implement all measures set forth in the three-year action plan to improve the quality of listed companies and the action plan to

improve quality and returns of listed companies and pursue high-quality development through standardized corporate governance;

continuously improve our governance system in accordance with the current regulatory policies taking into account our actual

situations; strengthen the primary responsibility of the “key few” enhance the internal driving forces for corporate governance;

establish the special meeting system of independent directors and guarantee the performance of duties by the independent directors;

broaden the channels for investors’ participation in corporate governance facilitate the participation by all kinds of investors in major

decision-making continuously improve the return on investment mechanisms; strengthen ESG governance and use ESG as an

important means to pursue high-quality corporate development.

(8) Vigorously train the new generation of young leading talents. “People” are the key to the development of new quality

productive forces so we must make good use of talents as the “primary resources”. We will attach greater importance to team building

and exploitation of young talents provide an infinite stage for daring and innovative Mango people; explore and establish incentive

mechanisms in line with the market competition rules create conditions and environment for the growth of new technical talents;

advance the “Young Talent Program” with high quality; create a more enthusiastic more free cultural atmosphere to enable more post-

95s and post-00s to stand up step forward and rise up and inject endless vitality for the building of a mainstream new media group.

2. Potential risks and countermeasures

(1) Risks of impact of economic cycles. The advertising budget of business customers and consumption preference of end users

of our Internet video business are closely related to the macroeconomic cycles. In recent years China’s economy has maintained

medium-to-high speed of development and Internet media industry has realized rapid growth. However given the economic cycles

our business development may still be affected to a certain extent. To this end we will fully make foresight and planning and

continuously consolidate our core competitiveness in terms of content products talents and technologies to effectively cope with the

impact of economic cycles.

(2) Risk of changes in industrial policies. We pertain to the cultural and art industry. The market players shall conduct relevant

business in strict accordance with the industrial regulatory policies and shall obtain broadcast licenses before releasing the films TV

dramas variety shows. Any change in industrial regulatory policies will bring uncertainties to our content production and broadcast

schedule. As a Party media and state-owned enterprise we have head start advantages in policy research and will adhere to the correct

political direction direction of guidance of public opinion and direction of values and create content in strict compliance with

requirements of industrial policies.

(3) Risks of market competition. The Internet long video industry witnesses fundamental changes in operational thinking and

underlying logics and enters a new stage of rational development in terms of industry competition. Various major video platforms are

further strengthening capabilities of proprietary content production improving operation efficiency and enhancing profitability.Changes in industrial competitive situation may have adverse impact on our market shares and profitability. As a state-owned long

video platform we will continue to pursue the values guiding role of media and innovation in proprietary content and consolidate

development advantages with content advantages.

(4) Risk of business qualifications. Our certain businesses require and maintain special business qualifications. If we are unable

to promptly renew or obtain new business qualifications upon expiration of the relevant existing business qualifications our business

development may be adversely affected. We will enhance business qualification management work out a scientific plan for applying

for business qualifications increase communications with the competent business qualifications authorities to promptly renew business

qualifications upon expiration thereof.

(5) Risks of return on investment. The broadcast effect of audiovisual content including films TV dramas and variety shows is

highly uncertain because it is affected by several factors such as program quality user preference and public opinion environment. The

production of audiovisual content and the procurement of copyright have the inherent characteristics of huge amount of single

investment long period of return on investment and non-predictability of market reaction among others so the return on investment

is greatly uncertain. As a result we have firmly controlled content production elements in the whole process established a

comprehensive appraisal system to focus on the content input-output ratio and minimize investment risks.

(6) Risk of technology upgrading. Along with the maturity and application of metaverse AIGC and other technologies new

business patterns and business models will bring wholly new cultural and entertainment experience to users. If we fail to keep with the

trend of technology upgrading the commercial remodeling brought by technology upgrading may have an adverse effect on our

operation. We have established the innovation research institute to enhance researches on new technologies new models and future

trends of the industry make judgments and arrangements in advance and grasp development opportunities brought by technology

upgrading.

(7) Risk of outflow of talents. The new media business film and TV drama production and artist agency business conducted by

us have high requirements for the professional levels of practitioners so outflow of core personnel could affect the conduct of our

business to a certain degree. We have established an open and innovative incentive mechanism a unique self-motivation mechanism

34Mango Excellent Media Co. Ltd. Annual Report 2023

and a content ecosystem suitable for creative talents to release their potential so as to arouse the enthusiasm and creativity of core

personnel while retaining them.

(8) Risk of infringement on intellectual property rights. Our main business involves the use of copyright of audiovisual programs

so the purchased copyright may have defects and infringe on the interests of legal right holders. Meanwhile there exist infringements

on copyright of the programs to which we have legal rights and interests. Therefore we have established a copyright procurement

management system regulated the procurement process conducted strict examination of copyright supporting documents and

specified relevant rights and obligations as well as liability for breach of contract; and intensified efforts to safeguard our intellectual

property rights against copyright infringements.XII. Investigation research communication interview and other activities during the

Reporting Period

□Applicable □ N/A

Particulars of

Main topic of the

Method of discussion and investigation

Date Place Type of guests Guests

communication information and research

provided activity

available at

Refer to the Refer to our

Record of Record of

Investor Investor

Relations Relations

Communication Institutional Our business

April 25 2023 Teleconference Activities of Activities

by telephone investors situations

Mango (2023-001)

Excellent disclosed on

Media Co. Ltd. www.cninfo.co

(2023-001) m.cn

Refer to the Refer to the

Record of Record of

Investor Investor

Relations Relations

Online Our business

May 12 2023 Web meeting Others Activities of Activities of

communication situations

Mango Mango

Excellent Excellent

Media Co. Ltd. Media Co. Ltd.

(2023-002)(2023-002)

Refer to the Refer to the

Record of Record of

Investor Investor

Relations Relations

August 18 Communication Institutional Our business

Teleconference Activities of Activities of

2023 by telephone investors situations

Mango Mango

Excellent Excellent

Media Co. Ltd. Media Co. Ltd.

(2023-003)(2023-003)

XIII. Implementation of the action plan to improve the quality and returns

Whether the Company has disclosed its action plan to improve the quality and returns

□Yes □ NoIn order to implement the guiding ideology of “vigorously improving the quality and investment value of listed companies andtaking more effective measures to stabilize the market and enhance confidence” proposed by an Executive Meeting of the State Council

to safeguard the interests of all shareholders enhance investor confidence and promote high-quality development based on its

development strategies operating conditions and financial status the Company formulated the “Improving Both Quality and Returns”

action plan. The progress of the implementation of the “Improving Both Quality and Returns” action plan by the Company is detailed

in the Progress Announcement on the ‘Improving Both Quality and Returns’ Action Plan disclosed by the Company on the same day

on www.cninfo.com.cn.

35Mango Excellent Media Co. Ltd. Annual Report 2023

Section IV Corporate Governance

I. Overview of our corporate governance

During the Reporting Period we have continuously improved our corporate governance structure internal management and

control policies promoted compliant operations and raised the governance level in strict accordance with the requirements of the

Company Law the Securities Law the Code of Corporate Governance for Listed Companies the Rules Governing the Listing of

Stocks on the ChiNext Board of the Shenzhen Stock Exchange the Guide on Self-regulatory Supervision for Companies Listed on the

Shenzhen Stock Exchange No. 2 – Compliant Operations of Listed Companies on the ChiNext Board and other applicable laws

regulations and normative documents. As of the end of the Reporting Period our corporate governance complies with the applicable

laws administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies.

1. Shareholders and the general meeting of shareholders

We convened and held general meetings of shareholders in strict accordance with our Articles of Association and the Rules of

Procedure of the General Meeting of Shareholders and treated all shareholders fairly. We permitted investors to elect to vote in person

or on line at our shareholders’ meetings so as to enable minority investors to fully exercise their voting rights. In considering material

matters that affect the interests of minority investors the votes cast by them were counted separately and disclosed on the relevant

announcements on the resolutions of our shareholders’ meeting.

2. Relationship with the controlling shareholder

Our controlling shareholder exercised its rights as a contributor to the Company in accordance with law and did not directly or

indirectly interfere with the decision-making and business activities of the Company without the authorization of the general meeting

of shareholders. We conduct business and operate independently and are independent of our controlling shareholder in business

personnel assets organization and finance.

3. Directors and the Board of Directors

Our Board of Directors has 9 directors including 3 independent directors. The number of members and composition of our Board

of Directors comply with the requirements of the applicable laws and regulations and our Articles of Association. The procedures for

convening and holding the meetings of the Board of Directors voting procedures and resolutions comply with the relevant provisions

of the laws regulations Articles of Association and the Rules of Procedure of the Board of Directors. All directors exercise their

functions and perform their duties and obligations with good faith and diligently and in accordance with the provisions of the Guide

on Self-regulatory Supervision for Companies Listed on the Shenzhen Stock Exchange No. 2 – Compliant Operations of Listed

Companies on the ChiNext Board.

4. Supervisors and the Board of Supervisors

The Board of Supervisors of the Company consists of 3 supervisors including 1 employee supervisor. The number of members

and composition of the Board of Supervisors are in compliance with the requirements of relevant laws and regulations. During the

Reporting Period our supervisors seriously performed their duties and actively supervised our material matters related-party

transactions insiders internal controls and financial condition and performance of duties by our directors and executives in compliance

with the applicable laws and regulations pursuant to the Rules of Procedure of the Board of Supervisors.

5. Establishment and implementation of internal audit policy

Our Board of Directors has set up the Audit Committee responsible for communications supervision meeting organization and

examinations in respect of internal and external audits. The Audit Department under the Audit Committee is responsible for handling

day-to-day affairs and examination and supervision of the establishment and implementation of internal controls truthfulness and

completeness of financial information of the Company.

6. Performance appraisal and incentive and restraint mechanisms

Our Board of Directors has set up the Compensation and Appraisal Committee responsible for the establishment of compensation

policies determination of compensation plans and performance appraisal of executives. We have established scientific performance

appraisal standards and procedures for executives.

7. Stakeholders

We fully respect the legitimate rights and interests of stakeholders and strive to coordinate and balance the interests of

shareholders employees partners the society and other stakeholders and jointly promote our high-quality development the details of

which are shown in the 2023 ESG Report and Social Responsibility Report disclosed on www.cninfo.com.cn on the same day.

8. Information disclosure and transparency

We have established the relevant systems on information disclosure management made the secretary of the Board of Directors be

responsible for the information disclosure of the Company and designated www.cninfo.com.cn the China Securities Journal the

Shanghai Securities News the Securities Times and the Securities Daily as the websites and newspapers for us to disclose information.During the Reporting Period we performed the obligations of information disclosure in strict accordance with the requirements of the

CSRC and the Shenzhen Stock Exchange and ensured that all shareholders have equal opportunities to access the information about

us.We have established the office of the Board of Directors in charge of investor relations management in strict compliance with the

Work Guidelines for the Investor Relations Management of Listed Companies and the relevant systems on investor relations

management and is dedicated to enabling investors to equally access the business management future development and other

information on us in a better manner. We actively replied to important problems that employees care about through the investor

“interaction” platform investor consultation telephone public email and other communication channels as well as through

performance briefings convened on a periodic basis and receiving investigations by investors from time to time.

36Mango Excellent Media Co. Ltd. Annual Report 2023

During the Reporting Period we were awarded A the highest level in an annual assessment of information disclosure of listed

companies for the 5th consecutive year and awarded the “2023 Best Practice Cases of Directors’ Office of Listed Companies” by the

China Association for Public Companies.Is there any significant difference between the actual circumstance of corporate governance of the Company and the applicable laws

administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies

□Yes □No

There is no significant difference between the actual circumstance of our corporate governance and the applicable laws administrative

regulations and the provisions of the CSRC regarding corporate governance of the listed companies.II. The Company’s independence of its controlling shareholder and actual controller in assets

personnel finance organization and business

We are independent of our controlling shareholder and actual controller in assets personnel finance organization and business.The Company’s assets are complete and free from any encumbrance and we have independent purchasing production and sales

systems and supporting facilities; we have an independent human resources department; we have an independent finance department

and have established independent financial and accounting system and formulated financial management policies; we have set up

internal bodies that are suitable for our development requirements and operate independently; we are an independent corporate entity

and conduct business and operate independently. None of our controlling shareholder actual controller or their affiliates have illegally

occupied our funds or requested us to provide any guarantee in violation of the applicable laws and regulations.III. Horizontal competition

□Applicable □ N/A

Type of related-

party

Type of Company Progress and

relationship Company name Reasons Solutions

problems nature subsequent plans

with the Listed

Company

Regulated by In accordance with

Actual

Coexistence HTBI SASAC local relevant notices and

controller

counterparts replied approvals GBS has issued

issued by the written

General Office of the commitment on

CPC Hunan matters related

Provincial to horizontal

Committee the competition

GBS has issued written

General Office of the with the Listed

commitment on matters

People’s Company

related to horizontal

Government of during the

competition with the

Hunan Province and application

Listed Company during

the Special Panel for process of the

the application process

Reform of Hunan Company’s

of the Company’s 2020

Provincial Cultural 2020 non-public

non-public offering and

System from 2018 offering and of

of free transfer by the

the CPC Hunan free transfer by

Company’s controlling

Provincial the Company’s

Regulated by shareholder of the

Actual Xiaoxiang Film Committee and the controlling

Coexistence SASAC local state-owned shares

controller Group People’s shareholder of

counterparts which clearly describes

Government of the state-owned

the plan and schedule

Hunan Province shares which

for solving the

proposed to clearly describes

horizontal competition

reorganize the CPC the plan and

with details referring to

Committee of schedule forSection VI “I.Golden Eagle solving the

Performance of

Broadcasting horizontalcommitments”.System Co. Ltd. to competition

universally lead with details

GBS Xiaoxiang referring toFilm Group and Section VI “I.HBNHG. It was Performance ofagreed that commitments”.Xiaoxiang Film

Group and HBNHG

37Mango Excellent Media Co. Ltd. Annual Report 2023

were merged into

GBS to be its

wholly-owned

subsidiaries and all

institutional assets

owned by Hunan

Broadcasting

System were

divested and

transferred to GBS

so that the

management systemof “two institutionsunder the leadership

of one CPC

committee operatingintegratedly” can be

realized and GBS

can further develop.After the integration

of GBS Xiaoxiang

Film Group (film

and television

content production

business) and HTBI

(game business)

under HBNHG have

similar businesses

with the Listed

Company.IV. Annual and extraordinary general meetings of shareholders held during the Reporting

Period

1. General meetings of shareholders held during the Reporting Period

Percentage of

Resolution of the

Session Type of meeting investors attending Date of meeting Disclosure date

meeting

the meeting

Refer to the

Announcement on

Resolutions of the

1st extraordinary First Extraordinary

Extraordinary

general meeting of General Meeting of

general meeting of 71.32% February 21 2023 February 22 2023

shareholders in Shareholders in 2023

shareholders

2023 (Announcement No.

2023-010) disclosed

on

www.cninfo.com.cn.Refer to the

Announcement on

Resolutions of the

Annual general 2022 Annual General

Annual general

meeting of Meeting of

meeting of 71.12% May 31 2023 June 1 2023

shareholders in Shareholders

shareholders

2022 (Announcement No.:

2023-040) disclosed

on

www.cninfo.com.cn.

38Mango Excellent Media Co. Ltd. Annual Report 2023

2. Extraordinary general meetings of shareholders convened at the request of preferred shareholders with

resumed voting rights

□Applicable □N/A

V. Arrangement for differential voting rights

□Applicable □N/A

VI. Corporate governance of red-chip structured companies

□Applicable □N/A

VII. Directors supervisors and executives

1. Particulars

39Mango Excellent Media Co. Ltd. Annual Report 2023

Changes in Cause of

Beginning End date No. of additional

Opening No. of shares the number of Closing increase or

date of the of the shares acquired in

Name Gender Age Title Status balance of disposed of in the shares held balance of decrease in

term of term of the Reporting

shares held Reporting Period due to other shares held the number of

office office Period

reasons shares held

January 31

Chairman Current

CAI 2023

Male 47

Huaijun September

Director Current

122018

ZHONG June 14

Male 49 Independent Director Current

Hongming 2017

January 8

XIAO Xing Female 53 Independent Director Current

2019

January 8

LIU Yuhui Male 54 Independent Director Current

2019

February 21

YANG Yun Male 51 Director Current 1500 1500

2023

SONG February 21

Male 55 Director Current

Zichao 2023

February 21

Director Current

LIANG 2023

Male 45

Deping January 31

General Manager Current

2023

September

LIU Xin Male 53 Director Current

192019

May 19

PENG Jian Male 52 Director Current

2022

Chairman of the February 27

Current

Board of Supervisors 2023

FANG Fei Male 39

February 21

Supervisor Current

2023

ZHANG February 21

Male 52 Supervisor Current

Shangbin 2023

XIE September 7

Male 39 Employee Supervisor Current

Shaoqiang 2022

ZHENG Deputy General August 16

Male 48 Current

Huaping Manager 2018

Deputy General January 31

ZHOU Hai Male 48 Current

Manager 2023

Deputy General

ZHANG Manager & Finance Current July 4 2022

Male 47

Zhihong Director

Board Secretary Current July 25 2023

SHEN Deputy General

Male 44 Current July 4 2022

Yadong Manager

40Mango Excellent Media Co. Ltd. Annual Report 2023

Deputy General

LUO Zejun Male 53 Current July 4 2022

Manager

ZHANG Chairman and November January

Male 60 Retired

Huali Director 16 2017 31 2023

CAI August 16 January

Male 47 General Manager Retired

Huaijun 2018 31 2023

Chairman of the

June 14 February

YANG Yun Male 51 Board of Supervisors Retired

2017212023

and Supervisor

LUO September January

Male 62 Director Retired

Weixiong 19 2019 31 2023

ZHANG November January

Male 62 Director Retired

Yong 25 2011 31 2023

LIANG Executive Deputy Appointed January

Male 45 July 4 2022

Deping General Manager and removed 31 2023

June 14 February

LI Jiaochun Male 60 Supervisor Retired

2017212023

Deputy General April 27

Retired July 4 2022

Manager 2023

WU Jun Female 41

April 27 April 27

Board Secretary Retired

20192023

Total -- -- -- -- -- -- 1500 0 0 0 1500 --

41Mango Excellent Media Co. Ltd. Annual Report 2023

Whether any director or supervisor retired or any executive was removed during the Reporting Period

□Yes □No

On January 31 2023 Mr. ZHANG Huali resigned as the Chairman director and member of the Strategy Committee of the Company

due to work adjustment.On January 31 2023 Mr. LUO Weixiong and Mr. ZHANG Yong resigned as the director and members of the relevant committees of

the Board of Directors because they have reached the statutory retirement age.On January 31 2023 upon deliberation and approval at the 14th meeting of the 4th Board of Directors of the Company Mr. CAI Huaijun

director served as the Chairman of the 4th Board of Directors and ceased to serve as the general manager of the Company.On January 31 2023 upon deliberation and approval at the 14th meeting of the 4th Board of Directors of the Company Mr. LIANG

Deping served as the general manager of the Company and ceased to serve as the executive deputy general manager.On February 21 2023 Mr. YANG Yun resigned as the non-employee supervisor and Chairman of the 4th Board of Supervisors due to

work adjustment.On February 21 2023 Mr. LI Jiaochun resigned as the non-employee supervisor of the 4th Board of Supervisors due to work adjustment.On April 27 2023 Ms. WU Jun resigned as the deputy general manager and Board Secretary of the Company due to work adjustment.Changes in directors supervisors and executives

□Applicable □ N/A

Name Title Type Date Reason

Mr. ZHANG Huali resigned as the Chairman of the

ZHANG 4th Board of Directors director and member of the

Chairman Retired January 31 2023

Huali Strategy Committee of the Company due to work

adjustment.Upon deliberation and approval at the 14th meeting

of the 4th Board of Directors of the Company

Appointed

CAI Huaijun Chairman January 31 2023 director Mr. CAI Huaijun served as the Chairman of

and removed

the 4th Board of Directors and ceased to serve as the

general manager of the Company.Mr. LUO Weixiong resigned as the director of the 4th

LUO Board of Directors and member of the relevant

Director Retired January 31 2023

Weixiong committees of the Board of Directors because he has

reached the retirement age.Mr. ZHANG Yong resigned as the director of the 4th

Board of Directors and member of the relevant

ZHANG Yong Director Retired January 31 2023

committees of the Board of Directors because he has

reached the retirement age.Upon deliberation and approval at the 14th meeting

of the 4th Board of Directors of the Company Mr.LIANG General Appointed

January 31 2023 LIANG Deping served as the general manager of the

Deping Manager and removed

Company and ceased to serve as the executive

deputy general manager.Upon deliberation and approval at the 14th meeting

Deputy General of the 4th Board of Directors of the Company Mr.ZHOU Hai Appointed January 31 2023

Manager ZHOU Hai was appointed as the deputy general

manager of the Company.Mr. YANG Yun was elected as the director at the 1st

YANG Yun Director Elected February 21 2023 extraordinary general meeting of shareholders in

2023.

Mr. SONG Zichao was elected as the director at the

SONG Zichao Director Elected February 21 2023 1st extraordinary general meeting of shareholders in

2023.

Mr. LIANG Deping was elected as the director at the

LIANG

Director Elected February 21 2023 1st extraordinary general meeting of shareholders in

Deping

2023.

Mr. FANG Fei was elected as the non-employee

Supervisor and

supervisor at the 1st extraordinary general meeting of

Chairman of the

FANG Fei Elected February 21 2023 shareholders in 2023 and as the chairman of the 4th

Board of

Board of Supervisors at the 12th meeting of the 4th

Supervisors

Board of Supervisors on February 27 2023.YANG Yun Chairman of the Retired February 21 2023 Mr. YANG Yun resigned as the non-employee

42Mango Excellent Media Co. Ltd. Annual Report 2023

Board of supervisor and chairman of the 4th Board of

Supervisors Supervisors due to work adjustment which will

become effective after a new supervisor is elected at

the general meeting of shareholders of the Company.Mr. ZHANG Shangbin was elected as the non-

ZHANG

Supervisor Elected February 21 2023 employee supervisor at the 1st extraordinary general

Shangbin

meeting of shareholders in 2023.Mr. LI Jiaochun resigned as the non-employee

supervisor of the 4th Board of Supervisors due to

LI Jiaochun Supervisor Retired February 21 2023 work adjustment which will become effective after

a new supervisor is elected at the general meeting of

shareholders of the Company.Mr. ZHANG Zhihong was elected as the board

ZHANG

Board Secretary Appointed July 25 2023 secretary at the 17th meeting of the 4th Board of

Zhihong

Directors.Deputy General

Ms. WU Jun resigned as the deputy general manager

WU Jun Manager and Removed April 27 2023

and board secretary due to work adjustment.Board Secretary

2. Positions held

Professional background and main work experience of our current directors supervisors and executives and main positions held by

them in the Company:

Directors of the Company:

CAI Huaijun male born in December 1977 member of the Communist Party of China holds a doctor’s degree in management;

former director General Manager and Chief Editor of Mango Excellent Media Co. Ltd. Secretary of the Party Committee executive

director and General Manager of Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd. and Chairman of Xiaomang

Electronic Commerce Co. Ltd.; and is now member of the Party Committee and Deputy General Manager (Vice President) of Golden

Eagle Broadcasting System Co. Ltd. (Hunan Broadcasting System) Secretary of the Party Committee of Satellite TV Channel and

Deputy Secretary and Chairman of the Board of Directors in Mango Excellent Media Co. Ltd.ZHONG Hongming male Han ethnicity born in January 1975 graduated from the Law School of Renmin University of China

doctor of laws; is now associate research fellow at the Institute of Law Sichuan Academy of Social Sciences member of the Executive

Council of the China Commercial Law Society member of the Executive Council of the China Securities Law Society and independent

director of FIYTA Precision Technology Co. Ltd. and Chengdu Shengbang Seals Co. Ltd.; and has been our independent director

since June 2017.XIAO Xing female born in March 1971 member of the Communist Party of China graduated from the Tsinghua University

PhD in accounting; joined the School of Economics and Management of Tsinghua University in 1997 successively acted as teaching

assistant lecturer associate professor tenured associate professor and tenured professor there; and is now professor and chief of the

Department of Accounting of the School of Economics and Management Tsinghua University and Director of the Institute for Global

Private Equity Tsinghua University member of the National Accounting Professional Master Education Steering Committee member

of the Accounting Teaching Steering Committee of the Ministry of Education executive director of the Accounting Society of China

and independent director of Li Auto and Kuaishou Technology; and has been our independent director since January 2019.LIU Yuhui male born in October 1970 graduated from the Chinese Academy of Social Sciences majoring in quantitative

economics PhD; Head of the Key Financing Laboratory the Institute of Finance the Chinese Academy of Social Sciences from August

2003 to April 2017; research fellow of the Institute of Economics the Chinese Academy of Social Sciences between April 2017 and

April 2023; and is now member of the Executive Council of the China Chief Economist Forum; and has been our independent director

since January 2019.YANG Yun male born in July 1973 member of the Communist Party of China holds an MBA degree accountant; former

Deputy Director of the Entertainment Channel of Hunan Broadcasting System member of the Party Committee and Deputy General

Manager of Mango Media Co. Ltd. Director of the Finance Department of Hunan Broadcasting System Head of the Assets and

Finance Department of Golden Eagle Broadcasting System Co. Ltd. and the Chairman of the Board of Supervisors in Mango Excellent

Media Co. Ltd.; and is now member of the Party Committee Deputy General Manager (Vice President) and Head of the Assets and

Finance Department of Golden Eagle Broadcasting System Co. Ltd. (Hunan Broadcasting System) Secretary of the General Party

Branch director and General Manager of Mango Media Co. Ltd. director of Mango Excellent Media Co. Ltd. and Hunan TV &

Broadcast Intermediary Co. Ltd.SONG Zichao male born in August 1969 member of the Communist Party of China grade-1 director holds a master’s degree

in arts; former Director of R&D Center Production Scheduling Center and Advertising Department of Satellite TV channel and Deputy

Director of Satellite TV channel in Hunan Broadcasting System and Secretary of the Party Committee of TV channel in Golden Eagle

Broadcasting System Co. Ltd. (Hunan Broadcasting System); and is now Deputy Secretary of the Party Committee and Director of

Satellite TV Channel in Golden Eagle Broadcasting System Co. Ltd. (Hunan Broadcasting System) Deputy Secretary of the Party

Committee and director of Mango Excellent Media Co. Ltd.LIANG Deping male born in February 1979 member of the Communist Party of China holds a MBA degree; former Deputy

General Manager and Finance Director Executive Deputy General Manager of Mango Excellent Media Co. Ltd. member of the Party

Committee Deputy General Manager and Finance Director of Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd. and

Secretary of the Party Committee and executive director of Happigo Co. Ltd.; and is now member of the Party Committee director

43Mango Excellent Media Co. Ltd. Annual Report 2023

and General Manager of Mango Excellent Media Co. Ltd. Secretary of the Party Committee executive director and General Manager

of Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd. director of Xiaomang Electronic Commerce Co. Ltd. and

member of the Party Committee of Satellite TV Channel in Golden Eagle Broadcasting System Co. Ltd. (Hunan Broadcasting System).LIU Xin male born in October 1971 member of the Communist Party of China PhD; former Deputy General Manager and

General Manager of the Data Department of China Mobile and Secretary of the Party Committee Chairman and General Manager of

Migu Culture Technology Co. Ltd. and is now General Manager of the Development Strategy Department of China Mobile and

director of iFlyTek Co. Ltd.; and has been our director since September 2019.PENG Jian male born in November 1972 member of the Communist Party of China undergraduate; former Deputy Director

of the Division IV of Hunan Commissioner Office of the Ministry of Finance full-time Deputy Secretary of the Party Committee of

Hunan Commissioner Office of the Ministry of Finance full-time Deputy Secretary of the Party Committee of Hunan Regulatory

Bureau of the Ministry of Finance and Assistant to the General Manager (temporary) of Hunan Chasing Financial Holding Group Co.Ltd.; is now Assistant to the General Manager of Hunan Chasing Financial Holding Group Co. Ltd.; and our director since May 2022.Supervisors of the Companies:

FANG Fei male born in December 1985 member of the Communist Party of China holds a master’s degree in science; former

General Manager of Advertising & Marketing Center Assistant to the President and Deputy General Manager of Hunan Happy

Sunshine Interactive Entertainment Media Co. Ltd. and employee supervisor of Mango Excellent Media Co. Ltd.; and is now

Chairman of the Board of Supervisors of Mango Excellent Media Co. Ltd. Deputy Director of Satellite TV Channel in Golden Eagle

Broadcasting System Co. Ltd. (Hunan Broadcasting System) member of the Party Committee of Hunan Happy Sunshine Interactive

Entertainment Media Co. Ltd. General Manager of Shanghai Mangofun Technology Co. Ltd. and director of Xiaomang Electronic

Commerce Co. Ltd.ZHANG Shangbin male born in May 1972 member of the Communist Party of China holds a bachelor’s degree in law; former

Deputy Director of Production and Scheduling Center and Director of Public Affairs Department Director of Comprehensive Affairs

Department and Director of HR Department of Satellite TV Channel in Hunan Broadcasting System; and is now member of the Party

Committee Secretary of Discipline Inspection Committee and supervisor of Mango Excellent Media Co. Ltd.XIE Shaoqiang male born in March 1985 member of the Communist Party of China undergraduate; former General Manager

of Large Membership Center General Manager of Operator Network Center and General Manager of Smart Large Screen Center in

Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd. and the General Manager of Xiaomang Electronic Commerce Co.Ltd.; and is now employee supervisor of Mango Excellent Media Co. Ltd. Deputy Chief Editor and General Manager of Brand

Promotion Center of Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd.Executives (other than those who serve on the Board of Directors concurrently) of the Company:

ZHENG Huaping male born in October 1976 member of the Communist Party of China holds a master’s degree in philosophy;

former Deputy Chief of Mango Media Restructuring and Listing Office Deputy Director of the Chief Editor Office of the Hunan

Satellite TV Channel Deputy Director of HBS Program Transaction Management Center and Chairman and General Manager of

Shanghai Mangofun Technology Co. Ltd.; and is now member of the Party Committee Chief Editor and Deputy General Manager of

Mango Excellent Media Co. Ltd. member of the Party Committee Chief Editor and Deputy General Manager of Hunan Happy

Sunshine Interactive Entertainment Media Co. Ltd. director of Xiaomang Electronic Commerce Co. Ltd. and member of the Party

Committee of Satellite TV Channel in Golden Eagle Broadcasting System Co. Ltd. (Hunan Broadcasting System).ZHOU Hai male born in November 1976 member of the Communist Party of China holds a master’s degree in law literary

editor of second rank; former Director of the Chief Editor Office Assistant to the Director and Director of the Chief Editor Office of

the Satellite TV Channel in Hunan Broadcasting System member of the Party Committee Deputy Director and Director of the Chief

Editor Office of Satellite TV Channel in Golden Eagle Broadcasting System Co. Ltd. (Hunan Broadcasting System) member of the

Party Committee and Secretary of the Discipline Inspection Committee of Mango Excellent Media Co. Ltd.; and is now member of

the Party Committee and Deputy General Manager of Mango Excellent Media Co. Ltd. executive director of Mango Studios Culture

Co. Ltd. and member of the Party Committee of Satellite TV Channel in Golden Eagle Broadcasting System Co. Ltd. (Hunan

Broadcasting System).ZHANG Zhihong male born in September 1977 member of the Communist Party of China holds a master’s degree in

management; former Senior Director of the Assets and Finance Department General Manager of the Finance Center and Finance

Director of Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd. and Deputy General Manager and Finance Director of

Happy Sunshine Xingmang Interactive Entertainment Media Co. Ltd.; and is now Deputy General Manager Finance Director and

Board Secretary of Mango Excellent Media Co. Ltd member of the Party Committee Deputy General Manager and Finance Director

of Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd. and the director of Xiaomang Electronic Commerce Co. Ltd.SHEN Yadong male born in June 1980 member of the Communist Party of China holds a master’s degree in law; former

Deputy General Manager of the Program Department of the Chief Editor Office of Satellite TV Channel in Hunan Broadcasting System

Head of Copyright Management Department of HBS Program Transaction Management Center Deputy General Manager of Shanghai

EE-Media Co. Ltd. No. 1 Deputy Director of Legal Affair Department of Golden Eagle Broadcasting System Co. Ltd. and Assistant

to General Manager of Mango Excellent Media Co. Ltd.; and is now Deputy General Manager of Mango Excellent Media Co. Ltd.and executive director and General Manager of Shanghai EE-Media Co. Ltd.LUO Zejun male born in February 1971 member of the Communist Party of China undergraduate; former Director of the

Security Department of Hunan Economic TV Channel Deputy Director of HBS Urban Channel Executive Deputy General Manager

Secretary of the General Party Branch and General Manager of Hunan Radio Film & Television Property Management Center and

Director of HBS Logistics Support Center; and is now Deputy General Manager of Mango Excellent Media Co. Ltd. and member of

the Party Committee and Deputy General Manager of Hunan Happy Sunshine Interactive Entertainment Media Co. Ltd.Positions held in shareholders:

□Applicable □ N/A

Name Shareholder Position Beginning date of End date of the Whether or not

44Mango Excellent Media Co. Ltd. Annual Report 2023

the term of office term of office receiving

remunerations and

subsidies from

such shareholder

Secretary of the

General Party

Mango Media Co.YANG Yun Branch Director

Ltd.& General

Manager

Positions held in other entities:

□Applicable □N/A

Whether or not

receiving

Beginning date of End date of the

Name Entity Position remunerations and

the term of office term of office

subsidies from

such entity

Member of the

Party Committee

Deputy General

Manager (Vice

CAI Huaijun GBS (HBS) President) and

Secretary of the

Party Committee

of Satellite TV

Channel

Institute of Law

ZHONG Associate research

Sichuan Academy

Hongming fellow

of Social Sciences

ZHONG China Commercial Member of the

Hongming Law Society Executive Council

ZHONG China Securities Member of the

Hongming Law Society Executive Council

ZHONG FIYTA (Group) Independent

Hongming Co. Ltd. Director

Chengdu

ZHONG Independent

Shengbang Seals

Hongming Director

Co. Ltd.School of

Economics and

XIAO Xing Management Professor

Tsinghua

University

Institute for Global

Private Equity

XIAO Xing Dean

Tsinghua

University

National

Accounting

Professional

XIAO Xing Member

Master Education

Steering

Committee

Accounting

Teaching Steering

XIAO Xing Committee of the Member

Ministry of

Education

Accounting

XIAO Xing Executive director

Society of China

Independent

XIAO Xing Li Auto

Director

Kuaishou Independent

XIAO Xing

Technology Director

China Chief Member of the

LIU Yuhui

Economist Forum Executive Council

45Mango Excellent Media Co. Ltd. Annual Report 2023

Member of the

Party Committee

Deputy General

Manager (Vice

YANG Yun GBS (HBS)

President) and

Head of the Assets

and Finance

Department

YANG Yun HTBI Director

Deputy Secretary

of the Party

Committee and

SONG Zichao GBS (HBS)

Director of

Satellite TV

Channel

Member of the

Party Committee

LIANG Deping GBS (HBS)

of Satellite TV

Channel

General Manager

of the

LIU Xin China Mobile Development

Strategy

Department

LIU Xin iFlyTek Co. Ltd. Director

Hunan Chasing

Assistant to the

PENG Jian Financial Holding

General Manager

Group Co. Ltd.Member of the

Party Committee

ZHENG Huaping GBS (HBS)

of Satellite TV

Channel

Member of the

Party Committee

ZHOU Hai GBS (HBS)

of Satellite TV

Channel

Deputy Director of

FANG Fei GBS (HBS) Satellite TV

Channel

Punishments imposed by the securities regulatory authorities in the past three years on the directors supervisors and executives of the

Company currently in office or leaving office during the Reporting Period:

□Applicable □N/A

3. Remunerations of directors supervisors and executives

Decision-making process criteria for determination and actual amount in respect of remunerations of directors supervisors and

executives

Decision-making process: The remunerations of our directors and supervisors are decided by the shareholders’ meeting according to

our Articles of Association and other relevant provisions; the remunerations of executives are decided by the Board of Directors. The

remunerations and subsidies of our directors and supervisors are considered and approved by the Board of Directors and then submitted

to the general meeting of shareholders for approval.Criteria for determination of the remunerations: The remunerations are determined according to our business situations scope duties

importance and result of performance appraisal. The subsidies of independent directors are determined by reference to the overall level

of the listed companies in the same region and industry.Amount of remunerations actually paid: The remunerations of directors supervisors and executives holding posts in the Company are

paid by the Company during the Reporting Period. We do not pay any additional subsidy to our directors and supervisors. The amount

of total remunerations paid in 2023 was RMB33881000.Remunerations of directors supervisors and executives paid in the Reporting Period:

In RMB 0’000

Total Whether or not

Name Gender Age Title Status remuneration receiving

received from remunerations

46Mango Excellent Media Co. Ltd. Annual Report 2023

the Company from any

(tax inclusive) affiliate of the

Company

CAI Huaijun Male 47 Chairman Current 0

ZHONG Independent

Male 49 Current 22

Hongming Director

Independent

XIAO Xing Female 53 Current 22

Director

Independent

LIU Yuhui Male 54 Current 22

Director

YANG Yun Male 51 Director Current 0

SONG Zichao Male 55 Director Current 0

Director &

LIANG Deping Male 45 General Current 500

Manager

LIU Xin Male 53 Director Current 0

PENG Jian Male 52 Director Current 0

Chairman of

FANG Fei Male 39 the Board of Current 450

Supervisors

ZHANG

Male 52 Supervisor Current 244.77

Shangbin

Employee

XIE Shaoqiang Male 39 Current 280

Supervisor

ZHENG Deputy General

Male 48 Current 450

Huaping Manager

Deputy General

ZHOU Hai Male 48 Current 400

Manager

Deputy General

Manager

ZHANG Finance

Male 47 Current 400

Zhihong Director and

Board

Secretary

Deputy General

SHEN Yadong Male 44 Current 256

Manager

Deputy General

LUO Zejun Male 53 Current 256

Manager

ZHANG Huali Male 60 Chairman Retired 0

LUO Weixiong Male 62 Director Retired 0

ZHANG Yong Male 62 Director Retired 0

LI Jiaochun Male 60 Supervisor Retired 0

Deputy General

Manager and

WU Jun Female 41 Retired 85.33

Board

Secretary

Total -- -- -- -- 3388.1 --

Other information:

□Applicable □N/A

VIII. Performance of duties by the directors during the Reporting Period

1. Meetings of the Board of Directors held during the Reporting Period

Meeting Date of meeting Disclosure date Resolution of the meeting

Refer to the Announcement on

th Resolutions of the 14

th meeting of the 4th

14 meeting of the 4th Board

January 31 2023 February 1 2023 Board of Directors disclosed on

of Directors

www.cninfo.com.cn (Announcement

No. 2023-003)

15th meeting of the 4 th Board April 20 2023 April 22 2023 Refer to the Announcement on

47Mango Excellent Media Co. Ltd. Annual Report 2023

of Directors Resolutions of the 15th meeting of the 4th

Board of Directors disclosed on

www.cninfo.com.cn (Announcement

No. 2023-016)

Refer to the Announcement on

th th Resolutions of the 16

th meeting of the 4th

16 meeting of the 4 Board

May 10 2023 May 11 2023 Board of Directors disclosed on

of Directors

www.cninfo.com.cn (Announcement

No. 2023-035)

Refer to the Announcement on

th th Resolutions of the 17

th meeting of the 4th

17 meeting of the 4 Board

July 25 2023 July 26 2023 Board of Directors disclosed on

of Directors

www.cninfo.com.cn (Announcement

No. 2023-044)

Refer to the Announcement on

th th Resolutions of the 18

th meeting of the 4th

18 meeting of the 4 Board

August 17 2023 August 18 2023 Board of Directors disclosed on

of Directors

www.cninfo.com.cn (Announcement

No. 2023-048)

Refer to the Announcement on

th th

19th

Resolutions of the 19 meeting of the 4

meeting of the 4th Board

October 24 2023 October 25 2023 Board of Directors disclosed on

of Directors

www.cninfo.com.cn (Announcement

No. 2023-057)

2. Attendance of the directors at meetings of the Board of Directors and shareholders

Attendance of the directors at meetings of the Board of Directors and shareholders

No. of board Whether or

No. of board

meetings that not having

No. of board meetings No. of board No. of

should be No. of board been absent

meetings present by meetings shareholders’

Director attended meetings from two

present in means of present by meeting

during the absent from consecutive

person communicati proxy attended

Reporting board

on equipment

Period meetings

CAI Huaijun 6 0 6 0 0 No 2

ZHONG

6 0 6 0 0 No 2

Hongming

XIAO Xing 6 0 6 0 0 No 2

LIU Yuhui 6 0 6 0 0 No 2

YANG Yun 5 0 5 0 0 No 1

SONG

5 0 5 0 0 No 1

Zichao

LIANG

5 0 5 0 0 No 1

Deping

LIU Xin 6 0 6 0 0 No 0

PENG Jian 6 0 6 0 0 No 2

Explanation about absence from two consecutive meetings of the Board of Directors

3. Objections raised by the directors regarding matters of the Company

Whether any director has raised any objection regarding matters of the Company

□Yes □No

No director has raised any objection regarding matters of the Company during the Reporting Period.

4. Other information regarding the performance of duties by the directors

Whether the suggestions put forward by the directors have been adopted by the Company

□Yes □No

48Mango Excellent Media Co. Ltd. Annual Report 2023

Explanation about the adoption or non-adoption by the Company of the suggestions put forward by the directors

During the Reporting Period our directors have performed their duties and obligations diligently in strict accordance with the Company

Law the Securities Law and other applicable laws and regulations and our Articles of Association actively participated in the relevant

meetings and seriously considered all proposals. Our independent directors have kept communications with other directors executives

and related personnel by multiple ways asked for information about our production operation and financial conditions put forward

suggestions regarding our development strategies and corporate governance and expressed independent opinions about related-party

transactions profit distribution policies remuneration management and other matters to effectively ensure the fairness and

objectiveness of the decisions made by the Board of Directors. Our directors perform their duties honestly and in good faith safeguard

the legitimate rights and interests of the Company and all shareholders and play an active role in promoting our operational compliance

and healthy development.

49Mango Excellent Media Co. Ltd. Annual Report 2023

IX. Activities of the committees of the Board of Directors during the Reporting Period

No. of

Date of Important opinions Performance of

Committee Members meetings Topics Objections (if any)

meeting and suggestions other duties

held

Considered and approved the Proposal Regarding

the 2022 Auditor’s Report the Proposal Regarding

XIAO Xing the Self-assessment of Internal Controls in 2022 the

(Chairman) Proposal Regarding the Special Report on the

ZHONG April 10 Deposit and Use of Offering Proceeds in 2022 the

Hongming 2023 Proposal Regarding the Special Examination Report

and LIU on the Implementation of Significant Events and

Yuhui Material Receipts and Payments in 2022 and the

Proposal Regarding the Re-engagement of the

Accounting Firm.Considered and approved the Proposal Regarding

XIAO Xing

the Financial Report for the First Quarter of 2023

(Chairman)

and the Proposal Regarding the Special Report on

ZHONG April 14

the Deposit and Use of Offering Proceeds in the First

Hongming 2023

Quarter of 2023; and reviewed the First Quarter

and LIU

Audit Work Summary and Second Quarter Work

Yuhui

Plan 2023 prepared by the Audit Department.Considered and approved the Proposal Regarding

Audit

the Financial Report for the First Half of 2023 and

Committee XIAO Xing 5

the Proposal Regarding the Special Report on the

(Chairman)

Deposit and Use of Offering Proceeds in the First

ZHONG

Half of 2023; and approved the Proposal Regarding

Hongming August 6

the Special Examination Report on the

LIU Yuhui 2023

Implementation of Significant Events and Material

LIANG

Receipts and Payments in the First Half of 2023; and

Deping and

reviewed the Second Quarter Audit Work Summary

LIU Xin

and Third Quarter Work Plan 2023 prepared by the

Audit Department.XIAO Xing

Considered and approved the Proposal Regarding

(Chairman)

the Financial Report for the Third Quarter of 2023;

ZHONG

approved the Proposal Regarding the Special Report

Hongming October 19

on the Deposit and Use of Offering Proceeds in the

LIU Yuhui 2023

Third Quarter of 2023; and reviewed the Third

LIANG

Quarter Audit Work Summary and Fourth Quarter

Deping and

Work Plan 2023 prepared by the Audit Department.LIU Xin

XIAO Xing December Considered and approved the Proposal Regarding

(Chairman) 29 2023 the 2023 Annual Report Audit Plan prepared by Pan-

50Mango Excellent Media Co. Ltd. Annual Report 2023

ZHONG China Certified Public Accountants LLP the

Hongming Proposal Regarding the 2023 General Internal

LIU Yuhui Control Plan and the Proposal Regarding the 2024

LIANG Internal Audit Plan; and reviewed the 2023 Audit

Deping and Work Summary and 2024 Work Plan prepared by the

LIU Xin Audit Department.Considered and approved the Proposal Regarding

Waiver of the Notice Period for the 1st Meeting of

ZHONG the Nominating Committee of the 4th Board of

Hongming Directors in 2023 the Proposal Regarding

(Chairman) Nomination of Chairman of the 4th Board of

January 31

XIAO Xing Directors the Proposal Regarding Nomination of

2023

LIU Yuhui Non-independent Directors of the 4th Board of

and CAI Directors the Proposal Regarding Nomination of the

Huaijun General Manager of the Company and the Proposal

Nominating

2 Regarding Nomination of the Deputy General

Committee

Manager of the Company.ZHONG

Hongming

(Chairman)

XIAO Xing Considered and approved the Proposal Regarding

July 19 2023

LIU Yuhui Nomination of the Board Secretary of the Company.CAI Huaijun

and SONG

Zichao

LIU Yuhui

(Chairman)

Considered and approved the Proposal Regarding

ZHONG January 31

Total Salaries and Executives’ Remunerations of

Hongming 2023

Company for 2022.Compensation XIAO Xing

and Appraisal and LIU Xin 2

Committee LIU Yuhui

(Chairman)

Considered and approved the Proposal Regarding

ZHONG April 10

Performance Appraisal of Executives for 2022 and

Hongming 2023

Remuneration Proposal for 2023.XIAO Xing

and LIU Xin

51Mango Excellent Media Co. Ltd. Annual Report 2023

X. Activities of the Board of Supervisors

Whether the Board of Supervisors has identified any risk involving the Company in its supervisory activities during the Reporting

Period

□Yes □No

The Board of Supervisors has not raised any objection to the supervisory matters during the Reporting Period.XI. Employees

1. Employees and their composition by specialization and education background

Employees of the parent company (person) at the end of the

31

Reporting Period

Employees of main subsidiaries (person) at the end of the

4366

Reporting Period

Total of employees on active duty (person) at the end of the

4397

Reporting Period

Total of employees receiving remuneration for the current

4397

period (person)

Retired employees whose expense is undertaken by parent

13

company and main subsidiaries (person)

Composition of employees by specialization

Areas of specialization Headcounts

Production personnel 1517

Sales personnel 1694

Technical personnel 774

Finance personnel 147

Administrative personnel 265

Total 4397

Education background

Education background Headcounts

Doctorate 6

Master’s degree 611

Bachelor’s degree 3035

Junior college or below 745

Total 4397

2. Remuneration policy

In order to establish and improve the market-based salary determination mechanism and internal incentive and restraint mechanism

and effectively promote the scientific development of the Company the Company has formulated and promulgated the Measure of

Gross Remuneration Determination Mechanism and Management of Mango Excellent Media Co. Ltd. which provides detailed

provisions on the method of determining the gross payroll of the Company’s employees reasonable intervals formula management

procedures and supervision and inspection mechanisms. This measure strictly complies with the relevant provisions of the policydocuments and adheres to the basic principles of “strategic orientation dual-effect unification benefits synergy and dynamicsupervision”. According to this measure the annual gross payrolls of employees of the Company are determined reasonably by taking

the total annual salary of prior year as the basis and considering the Company’s salary-income ratio and market and industry benchmark

the completion of the assessment goals the rate of value preservation and appreciation of state-owned assets labor cost production

ratio and other factors in accordance with the Company’s development strategy and remuneration strategy annual production and

operation goals social benefits economic benefits and other factors.

3. Training plan

The Company continuously establishes and improves a systematic employee training system and cultivation system and carries out

training work by categories and levels. Based on an in-depth understanding of the training needs of employees the Company has

developed interesting and practical courses for employees of different functions and established a comprehensive training system

52Mango Excellent Media Co. Ltd. Annual Report 2023

covering vocational training theoretical education professional training marketing new technology new media operation etc. to

support the comprehensive development of the Company’s talents and enhance employees’ sense of belonging.

4. Outsourcing

√ Applicable □N/A

Total working hours of outsourcing (hour) 516594

Total remuneration paid for outsourcing (RMB) 23505685.49

XII. The Company’s profit distribution and capitalization of capital reserve

Policies of profit distribution during the Reporting Period especially the development implementation or adjustment of cash

dividend distribution policies

□Applicable □N/A

During the Reporting Period the Company implemented the 2022 profit distribution plan as follows: a cash dividend of RMB1.3 (tax

inclusive) per 10 shares or RMB243193705.95 in total was distributed to all shareholders based on the total share capital of

1870720815 shares without distributing any bonus shares or transferring any capital reserve to the share capital.

Special explanation for cash dividend policies

Do they comply with the provisions of Articles of Association

or the requirements of the resolutions of general meeting of Yes

shareholders

Are dividend standards and ratios clear and explicit Yes

Are decision-making procedures and mechanisms complete Yes

Do independent directors diligently perform their duties and

Yes

play their roles

If the Company has not distributed cash dividends explain the

reason and describe the measures to be taken in order to N/A

increase the return to investors in the futures

Do minority shareholders have the opportunity to fully express

their opinions and demands Are their legal rights and interests Yes

fully protected

Are conditions and procedures for adjusted or changed cash

Yes

dividend policies compliant and transparent

The Company’s proposed profit distribution plan and proposed capitalization of capital reserve during the Reporting Period are

consistent with relevant provisions of the Company’s Articles of Association and dividend management methods.□Yes □No □N/A

The Company’s proposed profit distribution plan and proposed capitalization of capital reserve during the Reporting Period are

consistent with relevant provisions of the Company’s Articles of Association and other regulations.Description of the profit distribution and capitalization of capital reserve during this year

Number of bonus shares distributed for each 10 shares (unit:

0

share)

Amount of dividends distributed for each 10 shares (in RMB)

1.8

(tax inclusive)

Number of shares transferred from capital reserve each 10

0

shares (unit: share)

Basic number of the share capital for the distribution proposal

1870720815

(unit: share)

Amount of cash dividends (tax inclusive) 336729746.70

Amount of cash dividends distributed by other means (such as

0.00

share repurchase) (RMB)

Total amount of cash dividends (RMB) 336729746.70

Distributable profit (RMB) 485261705.93

Ratio of total cash dividends to the distributable profit 100.00%

Particulars of cash dividends distributed for the Reporting Period

If the Company is at the growth period and has any major asset arrangement then at the time of distribution of profits its cash

53Mango Excellent Media Co. Ltd. Annual Report 2023

dividends shall account for at least 20% of profits distributed this time.Descriptions on proposal of profit distribution or capitalization of capital reserve

The profit distribution proposal which is in compliance with the relevant provisions of the Articles of Association and the

deliberation procedures has fully protected the legitimate rights and interests of minority investors.The Company puts forward no proposal for cash dividend distribution despite of profitable and positive profits of its parent company

attributable to shareholders during the Reporting Period

□Applicable □N/A

XIII. Implementation of the Company’s equity incentive plan employee shareholding plan or

other employee incentive measures

□Applicable □N/A

The Company has no equity incentive plan employee shareholding plan or other employee incentive measures as well as the

implementation thereof during the Reporting Period.XIV. Construction and implementation of internal control system during the Reporting Period

1. Construction and implementation of internal control system

During the Reporting Period the Company conscientiously complies with all laws and regulations as well as the provisions of the

Company’s internal control system to standardize operations optimize governance and control risks. Through comprehensive

implementation of the Company’s internal control application manual the Company makes continuous review and evaluation on the

implementation effects of the internal control system continues to improve and optimize various important business processes in

conjunction with business changes and revises and updates the internal control application manual in order to ensure its internal

control management develops synchronously with businesses and its internal control system is complete compliant with laws and

regulations effective and feasible. The Audit Department under the Audit Committee of the Board of Directors of the Company carries

out independent and objective supervision and evaluation within the Company pursuant to regulations and systems such as the Basic

Standards for Enterprise Internal Control Internal Audit Standards the Company’s Audit Management System and Management

Measures for Self-Evaluation of the Company’s Internal Control. In accordance with the determination of material deficiencies in the

Company’s internal control over financial report the Company has no material deficiencies in internal control over financial report on

the benchmark date of the internal control evaluation report and the Company has maintained effective internal control over financial

report in all material aspects under the requirements of Standards for Enterprise Internal Control and related regulations. In accordance

with the determination of material deficiencies in the Company’s internal control over non-financial report the Company has no

material deficiencies in internal control over non-financial report on the benchmark date of the internal control evaluation report. There

are no factors affecting the evaluation conclusion of the effectiveness of internal control from the benchmark date of the internal control

evaluation report to the issue date thereof.

2. Details of material internal control deficiencies identified during the Reporting Period

□Yes □No

XV. Management and control of subsidiaries by the Company during the Reporting Period

Integration Problems met Solutions Subsequent

Company name Integration plan Progress

progress in integration adopted solutions

Golden Eagle Acquisition by

Completed N/A N/A N/A N/A

Cartoon cash

XVI. Internal control assessment report or internal control audit report

1. Internal control assessment report

Disclosure date April 22 2024

Disclosure index http://www.cninfo.com.cn

Proportion of the total assets of the entities 100.00%

54Mango Excellent Media Co. Ltd. Annual Report 2023

included in the assessment scope to the

total assets recorded in the Company’s

consolidated financial statements

Proportion of the operating revenue of the

entities included in the assessment scope to

the operating revenue recorded in the 100.00%

Company’s consolidated financial

statements

Identification Standard of Deficiencies

Category Financial Report Non-financial Report

1. General deficiencies: other internal

control deficiencies under the threshold of

material deficiencies and significant

deficiencies.

1. General deficiencies: other internal

2. Significant deficiencies: the selection and

control deficiencies under the threshold of

application of accounting policies

material deficiencies and significant

inconsistent with the generally accepted

deficiencies.accounting standards; the absence of anti-

2. Significant deficiencies: general mistakes

fraud procedures and control measures; the

resulting from decision-making procedures;

absence of appropriate control mechanisms

violation of internal rules and regulations

the absence of compensatory controls or

resulting in losses; deficiencies in

failure in the implementation thereof for the

significant business mechanisms or

accounting treatment of irregular or special

systems; significant or general deficiencies

transactions; the existence of one or more

in internal control that have not been

deficiencies in the control of the financial

Qualitative standard rectified.reporting process at the end of the period

3. Material deficiencies: significant

and the absence of reasonable assurance that

mistakes due to lack of democratic decision-

the financial statements prepared are true

making procedures or unscientific decision-

and accurate.making procedures resulting in significant

3. Material deficiencies: fraud acts of the

property losses to the Company; serious

Company’s directors supervisors or

violations of national laws and regulations;

executives; correction of published financial

lack of significant business mechanisms or

reports by the Company and material

ineffectiveness of implementation thereof;

misstatements in the current financial

continuous or a large quantity of significant

reports detected by the certified public

internal control deficiencies in the

accountants but not identified by the

Company.Company’s internal control process;

ineffective supervision by the Audit

Committee and the internal audit institution

on internal control.

1. General deficiencies: potential

misstatement of total consolidated profit

<3% potential misstatement of total

consolidated owner’s equity <0.5%

potential misstatement of total consolidated

assets <0.5% potential misstatement of

total consolidated operating revenue <0.5%. 1. General deficiencies: direct property loss

2. Significant deficiencies: 3% ≤ potential subsequent to consolidation <0.5% of total

misstatement of total consolidated profit assets of the Company;

<5% 0.5% ≤ potential misstatement of total 2. Significant deficiencies: 0.5% of total

consolidated owner’s equity <1% 0.5% ≤ assets of the Company ≤ direct property loss

Quantitative standard

potential misstatement of total consolidated subsequent to consolidation <1% of total

assets <3% 0.5% ≤ potential misstatement assets of the Company;

of total consolidated operating revenue 3. Material deficiencies: 1% of total assets

<1%. of the Company ≤ direct property loss

3. Material deficiencies: potential subsequent to consolidation.

misstatement of total consolidated profit

≥5% potential misstatement of total

consolidated owner’s equity ≥1% potential

misstatement of total consolidated assets

≥3% potential misstatement of total

consolidated operating revenue ≥1%.Number of material deficiencies of

0

financial reports (piece)

Number of material deficiencies of non-

0

financial reports (piece)

55Mango Excellent Media Co. Ltd. Annual Report 2023

Number of significant deficiencies of

0

financial reports (piece)

Number of significant deficiencies of non-

0

financial reports (piece)

2. Audit or assurance report of internal control

Assurance report of internal control

Audit opinion on assurance report of internal control

The Company maintained effective internal control over financial reports in all material aspects as of December 31 2023 in

accordance with the Basic Standard for Corporate Internal Control and relevant regulations. This conclusion is based on the inherent

limitations set forth in the authentication report.Disclosure of Internal Control Assurance Report Disclosure

Disclosure date April 22 2024

Disclosure index http://www.cninfo.com.cn

Type of opinions Standard unqualified opinion

Whether there are any material deficiencies in non-financial

No

reports

Did the accounting firm issue a modified assurance report of internal control

□Yes √ No

Was the assurance report of internal control issued by the accounting firm in line with self-assessment report opinion of the Board of

Directors

√ Yes □No

XVII. Rectification on self-examination problems regarding the special campaign to improve

the governance of listed companies

Under relevant requirements of the Announcement on Launching a Special Campaign to Improve the Governance of Listed

Companies (Zheng Jian Hui [2020] No. 69) by China Securities Regulatory Commission (“CSRC”) and the Circular on Launching a

Special Campaign to Improve the Governance of Listed Companies (Xiang Zheng Jian Gong Si Zi [2020] No. 31) by Hunan Regulatory

Bureau of CSRC the Company conscientiously organizes carefully arranges and actively carries out the special campaign to improve

the governance of listed companies. Through self-examination self-correction and self-regulation the Company has strengthened the

endogenous power of corporate governance and improved rules of corporate governance system thus a good ecology of corporate

governance has been established and a listed company governance structure with each department taking accountability for their own

duties and responsibilities coordinated operation and effective balances has been further improved so as to solidify the foundation of

the Company’s high-quality development.Problems: There was no horizontal competition between Mango Media Co. Ltd. as our controlling shareholder and the Listed

Company. Mango Media Co. Ltd. has made written commitment on matters related to horizontal competition with the Listed Company

to avoid horizontal competition with the Listed Company. Xiaoxiang Film Group under GBS as our indirect controlling shareholder

and HTBI have similar businesses with the Listed Company.Reasons: In accordance with relevant notices and replied approvals issued by the General Office of the CPC Hunan Provincial

Committee the General Office of the People’s Government of Hunan Province and the Special Panel for Reform of Hunan Provincial

Cultural System from 2018 the CPC Hunan Provincial Committee and the People’s Government of Hunan Province proposed to

reorganize the CPC Committee of Golden Eagle Broadcasting System Co. Ltd. to universally lead Golden Eagle Broadcasting System

Xiaoxiang Film Group and HBNHG. It was agreed that Xiaoxiang Film Group and HBNHG were merged into GBS to be its wholly-

owned subsidiaries and all institutional assets owned by Hunan Broadcasting System were divested and transferred to GBS so that

the management system of “two institutions under the leadership of one CPC committee operating integratedly” can be realized and

GBS can further develop. After the integration of GBS Xiaoxiang Film Group (film and television content production business) and

HTBI (game business) under HBNHG have similar businesses with the Listed Company.Rectification plan: GBS has issued written commitment on matters related to horizontal competition with the Listed Company

during the application process of the Company’s 2020 non-public offering and of free transfer by the Company’s controlling

shareholder of the state-owned shares which clearly describes the plan and schedule for solving the horizontal competition with key

details referring to Section VI “I. Performance of commitments”.

56Mango Excellent Media Co. Ltd. Annual Report 2023

Section V Environmental and Social Responsibility

I. Significant environment protection problems

Whether the Listed Company and its subsidiaries are in high pollution industries regulated by the State Department of Environmental

Protection

□Yes □No

Description of administrative penalties for environmental problems during the Reporting Period

Effects on

Company or Reasons for production and Rectification

Violation cases Penalty result

subsidiaries penalty operation of the measures

Listed Company

N/A N/A N/A N/A N/A N/A

Other environment information disclosed with reference to other entities engaged in high pollution industries

None

Measures taken to reduce its carbon emissions and their effectiveness during the Reporting Period

□Applicable □N/A

Reasons for not disclosing other environment information

None of the Company or its subsidiaries is a major polluter identified by the environmental protection authority. During the Reporting

Period the Company and its subsidiaries received no penalties due to violation of laws and regulations related to environment protection.II. Description of social responsibilities

See the 2023 ESG Report and Social Responsibility Report disclosed on www.cninfo.com.cn on the same day.III. Description of consolidating and expanding achievements of poverty eradication and rural

revitalization

See the 2023 ESG Report and Social Responsibility Report disclosed on www.cninfo.com.cn on the same day.

57Mango Excellent Media Co. Ltd. Annual Report 2023

Section VI Important Events

I. Performance of Commitments

1. Commitments completed during the Reporting Period or not completed as of the end of the Reporting

Period by the actual controller shareholders affiliates and acquirer of the Company the Company itself and

other related parties

□Applicable □ N/A

Commitment Committed by Type Content Date Deadline Performance

1. After completion of this free transfer we and our related

parties will minimize and regulate the related-party

transactions with the List Company and its subordinate

enterprises. 2. After completion of this free transfer with

respect to the related-party transactions with the Listed

Company and its subordinate enterprises that are

unavoidable or conducted with good reason we and our

related parties will comply with the market principle to

conclude such transactions at fair and reasonable market

prices perform decision-making procedures for related-

party transactions in accordance with the provisions of

applicable laws regulations and normative documents

fulfill the obligations of information disclosure in

Commitments on accordance with law and go through the relevant

Commitments Avoiding formalities for approval and avoid such transactions as

made in the Golden Eagle Horizontal required and will not use related-party transactions to

November Long-

Acquisition Report Broadcasting Competition illegally use funds and assets of the Listed Company or Ongoing

22 2022 term

or Equity Change System Co. Ltd. Related-party seek any other improper interests or use the status of the

Report Transactions and controlling shareholder to damage the legitimate interests

Fund Use of the Listed Company and other shareholders. 3. After

completion of this free transfer we will not use the

shareholder rights owned by us in the Listed Company to

manipulate or instruct the List Company or any of its

directors supervisors and executives to cause the Listed

Company to provide or accept funds goods services or

other assets on unfair terms or do any act that is detrimental

to the interests of the Listed Company. The aforementioned

commitments will remain in effect for so long as we

actually control the Listed Company and the Listed

Company maintains its listing status. We will be liable for

any actual losses if any caused to the Listed Company

arising from our breach of the aforementioned

commitments.In order to ensure the independence of the Listed Company

we make the following commitments with respect to

maintaining the independence of the Listed Company after

this free transfer: 1. We guarantee that Mango Excellent

Media will be independent of us and our related parties

business assets finance personnel and organization

among others and we will strictly comply with the relevant

provisions of the China Securities Regulatory Commission

(the “CSRC”) on the independence of listed companies; 2.Commitments

we undertake that we will not use our status as the actual

made in the Golden Eagle

Other controller of the Listed Company to damage the legitimate November Long-

Acquisition Report Broadcasting Ongoing

Commitments interests of the Listed Company; 3. we and the channels and 22 2022 term

or Equity Change System Co. Ltd.enterprises controlled by us will eliminate any illegal use

Report

of assets and funds of the Listed Company and in no event

shall we request the Listed Company and its controlled

subsidiaries to provide any form of guarantee or financial

support to us. The aforementioned commitments will

remain in effect for so long as we remain control of Mango

Excellent Media. We will compensate Mango Excellent

Media in time and in full for any and all losses caused to

Mango Excellent Media arising from our failure to fulfill

the aforementioned commitments.Commitments After completion of this transfer we will give full play to

Golden Eagle

made in the Other our active role as an indirect controlling shareholder of the November Long-

Broadcasting Ongoing

Acquisition Report Commitments Listed Company cause the Listed Company to 22 2022 term

System Co. Ltd.or Equity Change continuously improve the corporate governance structure

58Mango Excellent Media Co. Ltd. Annual Report 2023

Report establish a sound internal control system regulate the

operations of the Listed Company and raise the governance

level of the Listed Company in accordance with the

requirements of the Articles of Association of Mango

Excellent Media Co. Ltd. the Companies Law of the

People’s Republic of China the Securities Law of the

People’s Republic of China the Code of Corporate

Governance of Listed Companies the Rules Governing

Listing of Stocks on Shenzhen Stock Exchange the

Guidelines for Articles of Association of Listed Companies

and all other applicable laws and regulations of the CSRC

and the Shenzhen Stock Exchange.

1. As at the date of issue of the letter of commitments we

and the channels or enterprises controlled by us have not

carried out horizontal competition which has material

adverse effect on the Listed Company and/or its controlled

enterprises. 2. By the end of July 2026 we and the channels

or enterprises controlled by us will settle the horizontal

competition with the Listed Company that already existed

by various means such as entrusted management assets

restructuring business adjustment/termination and assets

transfer/sale and implement measures related to business

integration in accordance with laws regulations policies

articles of association or similar constitutional documents

of such channels or enterprise with a view to benefiting

business development of the Listed Company and

safeguarding benefits of shareholders of the Listed

Company. 3 We will and procure that channels and

enterprises controlled by us will adopt effective measures

to: (1) avoid adding other business constituting horizontal

competition with the Listed Company and/or its controlled

Commitments

enterprises before settling existing horizontal competition;

made in the Golden Eagle

Other (2) not to support any persons other than the Listed November Long-

Acquisition Report Broadcasting Ongoing

Commitments Company and/or its controlled enterprises in conducting 22 2022 term

or Equity Change System Co. Ltd.any business or activities which compete or would compete

Report

with the business currently conducted or presently

proposed to be conducted by the Listed Company and/or its

controlled enterprises. 4 If we and the channels or

enterprises controlled by us have any business opportunity

of carrying out participating in or holding shares in any

business or activity which would compete with the business

conducted by the Listed Company and/or its controlled

enterprises then the Listed Company and/or its controlled

enterprises shall have preferred rights with respect to such

business opportunity. 5 We agree to bear and compensate

for all losses damages and expenses caused to the Listed

Company and/or its controlled enterprises arising from our

breach of the aforementioned commitments. 6. The

aforementioned commitments will remain in effect for so

long as we actually control the Listed Company and the

Listed Company maintains its listing status. We will be

liable for any actual losses if any caused to the Listed

Company arising from our breach of the aforementioned

commitments.

1. During 6 months prior to the date of board resolution

concerning this issuance and till today we did not invest in

any similar financial business; from the date of issuing

letter of commitment (December 25 2020) to the date

when the capitals raised this time are totally used or during

36 months after raised capitals are available we undertake

Commitments to not add investment in any similar financial business

made at the time of Mango Excellent Other (including capital increase loan security and other forms December Long-

Ongoing

IPO or re- Media Co. Ltd. Commitments of investment); 2. As at the date of this Announcement we 25 2020 term

financing hold 100% of shares in Hunan Happy Money Microfinance

Co. Ltd. (hereinafter “Happy Money”) we will complete

dispose of small loan business of Happy Money through

dissolution and liquidation termination of business or

transferring equities to qualified entity within 6 months

after letter of commitments is issued and we will no longer

be engaged in small loan business.

(1) As at the date of issue of the letter of commitments

Commitments on GBS and the channels or enterprises controlled by it have

Fully fulfilled

Avoiding not carried out horizontal competition which has material

Commitments (Such

Golden Eagle Horizontal adverse effect on the Issuer and/or its controlled

made at the time of September Long- commitments have

Broadcasting Competition enterprises. (2) Within 5 years after completion of this

IPO or re- 25 2020 term been made in the

System Co. Ltd. Related-party issuance GBS and the channels or enterprises controlled

financing Acquisition Report

Transactions and by it will settle the horizontal competition with the Issuer

again).Fund Use that already existed by various means such as entrusted

management assets restructuring business

59Mango Excellent Media Co. Ltd. Annual Report 2023

adjustment/termination and assets transfer/sale and

implement measures related to business integration in

accordance with laws regulations policies articles of

association or similar organizational documents of such

channels or enterprise with a view to benefiting business

development of the Issuer and safeguarding benefits of

shareholders of the Issuer. (3) GBS will and procure that

channels and enterprises controlled by it will adopt

effective measures to: (i) avoid adding other business

constituting horizontal competition with the Issuer and/or

its controlled enterprises before settling existing horizontal

competition; (ii) not to support any persons other than those

of the Issuer and/or its controlled enterprises in conducting

any business or activities which compete or would compete

with the business currently conducted or presently

proposed to be conducted by the Listed Company and/or its

controlled enterprises. (4) If GBS and the channels or

enterprises controlled by it have any business opportunity

of carrying out participating in or holding shares in any

business or activity which would compete with the business

conducted by the Issuer and/or its controlled enterprises

then the Issuer and/or its controlled enterprises shall have

preferred rights with respect to such business opportunity.

(5) GBS agrees to bear and compensate for all losses

damages and expenses caused to the Issuer and/or its

controlled enterprises arising from GBS’s breach of the

aforementioned commitments.

(1) We undertake that we will not interfere in the

Company’s operation and management activities beyond

our authority nor will we encroach on the Company’s

interests; (2) From the date of this letter of commitment to

the completion of the Company’s issuance of A-share

shares to specific persons if securities regulatory

authorities such as the CSRC and Shenzhen Stock

Exchange make separate provisions or put forward other

requirements on measures to compensate for diluted returns

Commitments Hunan and the commitments thereon and the above commitments

made at the time of Broadcasting Other cannot meet such provisions we will then make September Long-

Ongoing

IPO or re- System; Mango Commitments supplementary commitments in accordance with the latest 25 2020 term

financing Media Co. Ltd. provisions; (3) We will effectively take relevant recovery

measures for returns formulated by the Company and fulfill

our corresponding commitments on recovery measures for

returns. Besides we will in case of violating or refusing to

fulfill the above commitments undertake the

corresponding obligations of explanation apology and so

on in accordance with the relevant provisions and will be

liable for compensation as appropriate in accordance with

law if losses are thus caused to the Company or its

shareholders.

(1) I undertake that I will faithfully and diligently perform

my duties and safeguard the legitimate rights and interests

of the Company and all shareholders; (2) I undertake that I

will not to transfer benefits to other entities or individuals

free of charge or under unfair conditions nor otherwise

damage the Company’s interests; (3) I undertake that I will

restrict my position-related consumption; (4) I undertake

that I will not use the Company’s assets to engage in

investment or consumption activities irrelevant to

performance of my duties; (5) I undertake that I will

CAI Huaijun; HE

procure the linkage of the compensation system formulated

Jin; LIANG

by the board of directors or the remuneration and appraisal

Deping; LIU Xin;

assessment committee with the implementation of the

LIU Yuhui; LUO

Company’s recovery measures for returns within my legal

Commitments Weixiong; TANG

authority; (6) If the Company subsequently implements the

made at the time of Liang; WANG Ke; Other September Long-

equity incentive plan I undertake that I will procure the Ongoing

IPO or re- WU Jun; XIAO Commitments 25 2020 term

linkage of exercise conditions for the Company’s equity

financing Xing; ZHANG

incentives to be announced with the implementation of the

Huali; ZHANG

Company’s recovery measures for returns within my legal

Yong; ZHENG

authority;

Huaping; ZHONG

(7) From the date of this letter of commitment to the

Hongming

completion of the Company’s issuance of A-share shares to

specific persons if securities regulatory authorities such as

the CSRC and Shenzhen Stock Exchange make separate

provisions or put forward other requirements on measures

to compensate for diluted returns and the commitments

thereon and the above commitments cannot meet such

provisions I undertake that I will then make supplementary

commitments in accordance with the latest provisions; (8)

I undertake that I will effectively implement measures to

compensate for diluted returns formulated by the Company

60Mango Excellent Media Co. Ltd. Annual Report 2023

and fulfill my corresponding commitments on measures to

compensate for diluted returns. Besides I will in case of

violating or refusing to fulfill the above commitments

undertake the corresponding obligations of explanation

apology and so on in accordance with the relevant

provisions and will be liable for compensation as

appropriate in accordance with if losses are thus caused to

the Company or its shareholders.

1. Within 36 months from the end of this issuance we will

not transfer the Listed Company’s shares acquired by us in

this restructuring in any form including but not limited to

the public transfer through securities market or transfer by

agreement nor will we entrust others with management of

the Listed Company’s shares held by us. Within 6 months

of completion of this restructuring if the daily closing price

of the Listed Company’s shares is lower than the issue price

for 20 consecutive trading days or the daily closing price

of the Listed Company’s shares at the end of a 6-month

period is lower than the issue price then the lock-up period

of the Listed Company’s shares acquired by us in this

restructuring will automatically be extended for 6 months;

2. The aforesaid share lock-up arrangements shall also Fully fulfilled but

apply to the increase in holdings of consideration shares such shareholder

Commitments

acquired by us in this restructuring due to placement of has not gone

made at the time of Mango Media Co. Commitments on July 12 July 12

shares bonus share distribution and capitalization of through the

IPO or re- Ltd. Share Lock-Up 2018 2021

capital reserve by the Listed Company and other reasons formalities for

financing

within the lock-up period; 3. If the aforesaid commitments circulation of

on the lock-up period are inconsistent with the latest restricted shares.regulatory opinions issued by the security regulatory

authority then we agree to make adjustments accordingly

pursuant to the regulatory opinions issued by the competent

security regulatory authority; after the expiry of the

aforesaid lock-up period the relevant regulations of the

CSRC and Shenzhen Stock Exchange shall apply; 4. If we

are suspected of providing or disclosing any information

containing misrepresentations misleading statements or

materials omissions in this transaction and are therefore

investigated by the judicial authority or the CSRC we will

not transfer the beneficial interest held by us in the Listed

Company before the investigation conclusion of the case is

determined.In order to avoid the horizontal competition with the Listed

Company Mango Media and Hunan Broadcasting System

have respectively issued their own Letter of Commitments

on Avoiding Horizontal Competition undertaking that

during the period of acting as the controlling shareholder

and actual controller of the Listed Company

1. We and the channels and enterprises controlled by us are

not engaged in any business or activity in any form that

competes or would compete directly or indirectly with the

business of the Listed Company and/or its controlled

enterprises.

2. After completion of this restructuring we will take and

procure the channels and companies controlled by us to

take effective measures to avoid: (1) engaging in any

business or activities directly or indirectly in any form that

competes or would compete directly or indirectly with the

Commitments on business of the Listed Company and/or its controlled

Avoiding enterprises or holding any interests or benefits in such

Commitments Hunan

Horizontal business; (2) supporting in any form any persons other than

made at the time of Broadcasting July 12 Long-

Competition the Listed Company and/or its controlled enterprises in Ongoing

IPO or re- System; Mango 2018 term

Related-party engagement in any business or activity that competes or

financing Media Co. Ltd.Transactions and would compete with the business currently conducted or

Fund Use presently proposed to be conducted by the Listed Company

and/or its controlled enterprises.

3. If we and the channels and enterprises controlled by us

have any business opportunity of carrying out participating

in or holding shares in any business or activity which would

compete with the business conducted by the Listed

Company and/or its controlled enterprises then Listed

Company and/or its controlled enterprises shall have

preferred rights with respect to such business opportunity.

4. If our business and the business of the channels and

enterprises controlled by us competes with business of the

Listed Company and/or its controlled enterprises then we

and the channels and enterprises controlled by us will cease

engaging in any business similar with or identical with the

principal business of the Listed Company and/or its

controlled enterprises to avoid the horizontal competition

by stopping conduct of the relevant competitive business

61Mango Excellent Media Co. Ltd. Annual Report 2023

including the relevant competitive business in that of the

listed company or transferring the relevant competitive

business to any unrelated third party.

5. We agree to bear and be liable for all losses damage and

costs caused to the Listed Company and/or its controlled

enterprises due to our breach of the aforesaidcommitments.”

In order to reduce and regulate the related-party

transactions and safeguard the legal rights and interests of

Happigo and minority shareholders Hunan Broadcasting

System and Mango Media have issued the Letter of

Commitments on Regulating Related-party Transactions

with the contents as follows: we and the channels and other

public institutions or economic organizations controlled by

us will take measures to avoid conducting the relate

related-party d party transactions with the Listed Company

and its controlled enterprises as far as possible; regarding

the related-party transactions that cannot be avoided or are

definitely necessary (including but not limited to product

transactions mutual offer of services/labor and etc.) we

Commitments on undertake that we will urge the channels and other public

Avoiding institutions or economic organizations controlled by us to

Commitments Hunan

Horizontal follow the principles of market fairness justice and

made at the time of Broadcasting July 12 Long-

Competition openness legally sign agreements and perform the legal Ongoing

IPO or re- System; Mango 2018 term

Related-party procedures in accordance with the provisions on the

financing Media Co. Ltd.Transactions and decision-making and abstention of related-party

Fund Use transactions of the relevant laws and regulations normative

documents and the Listed Company to guarantee the

fairness and compliance of the related-party transactions

will not harm the legitimate rights and interests of

shareholders of the Listed Company and its controlled

subsidiaries as well as shareholders of the Listed Company

through related-party transactions and will promptly

disclose the information as required by the relevant laws

and regulations and normative documents; We and the

channels and other public institutions or economic

organizations controlled by us will eliminate any illegal use

of assets and funds of the Listed Company. If aforesaid

commitments are breached we are willing to assume all

legal responsibilities arising therefrom.Mango Media Co. Ltd. the controlling shareholder of the

Company makes the following commitments with respect

to the intention to reduce shareholdings:

(1) If we intend to reduce the shares of the Company held

us it after expiry of lock-up period we will legally do same

and make a public announcement within 3 trading days

prior to reduction through the Company. The total number

of shares of the Company reduced by us within 2 years after

expiry of lock-up period shall not exceed 5% of total shares

Commitments

Commitments on held by us at the time of IPO and the price at which shares

made at the time of Mango Media Co. January 21 Long-

Reducing are reduced shall not be less than 100% of price of IPO. If Ongoing

IPO or re- Ltd. 2015 term

Shareholdings shares are reduced 2 years after expiry of lock-up period

financing

the price at which shares are reduced through call auction

trading system of securities exchange shall not be less than

closing price of shares in the trading day immediately

preceding the share reduction announcement day.

(2) The reduction period will be 6 months after the public

announcement of the reduction plan and if we continue to

reduce our shareholdings after expiry of the reduction

period we will make the public announcement anew in

accordance with the aforesaid arrangements.Hongyi Investment Industry Phase I Fund (Tianjin) (L.P.) Mianyang Fund

(“Hongyi Investment”) Mianyang Science and and HongshanTechnology Industry Investment Fund (L.P.) (“Mianyang Capital disclosedFund”) and Tianjin Hongshan Capital Investment Fund on November 19

Hongyi Investment

Center (L.P.) (“Hongshan Capital”) as other existing 2016 and Hongyi

Industry Phase I

shareholders of the Company make the following Investment

Fund (Tianjin)

commitments with respect to the intention to reduce disclosed on

(L.P.); Mianyang

shareholdings: (1) We will not transfer or entrust others December 10 2016

Commitments Science and

Commitments on with management of any pre-IPO shares of the Issuer held the Announcement

made at the time of Technology January 21 January

Reducing by us nor propose the repurchase of such shares by the on Prompt of

IPO or re- Industry 2015 21 2018

Shareholdings Company within 12 months from the listing date of the Shareholdings

financing Investment Fund

Issuer. (2) If we intend to reduce our shareholdings in the Reduction Plan for

(L.P.); Tianjin

Company after the expiry of the lock-up period of shares Shareholders

Hongshan Capital

held by us in the Company we will legally do same and Holding 5% or

Investment Fund

make a public announcement within 3 trading days prior to More of Shares

Center (L.P.)

reduction through the Company. The shareholdings of Prior to IPO

Hongyi Investment Mianyang Fund Hongshan Capital we through the

reduce in aggregate within 2 years after the expiry of the Company and as

lock-up period will equal to the issuer’s shares held in total of the end of 2017

62Mango Excellent Media Co. Ltd. Annual Report 2023

by us and the reduction price will not lower than 80% of all of them have

the IPO price of the Company. The reduction period will be completed

6 months after the public announcement of the reduction reduction of their

plan and if we continue to reduce our shareholdings after shareholdings.expiry of the reduction period we will make the public

announcement anew in accordance with the aforesaid

arrangements. During the period from the listing of the

Company’s shares until reduction of shareholdings if the

Company has paid dividends given bonus shares

capitalized capital reserve issued new shares or had other

ex-right and ex-dividend matters the floor reduction price

and number of reduced shares will be adjusted accordingly.If the Company’s shareholders fail to fulfill these

commitments the proceeds from reduction of

shareholdings in the Company will belong to the listed

Company.We will improve the profit distribution system particularly

the cash dividend policy. The Company improved the

Articles of Associations (Draft) at the 1st extraordinary

general meeting of shareholders in 2014 stipulating the

Company’s profit distribution policy the procedures for

decision-making and implementation of the profit

distribution policy preparation and adjustment mechanism

of the profit distribution policy and the plan for

Commitments Commitments on

Mango Excellent shareholders’ dividend returns in order to enhance the January 21 Long-

made at the time of Distributing Ongoing

Media Co. Ltd. protection over minority shareholders. The Articles of 2015 term

IPO or re- Dividends

Associations (Draft) further defines the Company’s profit

financing

distribution especially the specific conditions

percentages and forms of the cash dividend distribution as

well as the conditions of the bonus share distribution and

clarifies that the cash dividends are superior to bonus

shares; and the Company prepared the Plan on Dividend

Returns for the Coming Three Years of Happigo Inc. to

further implement the profit distribution system.(I) Commitments on Avoiding Horizontal Competition

In order to avoid the horizontal competition and protect the

interests of the Company and other shareholders Hunan

Broadcasting System as the actual controller of the

Company and Mango Media as the controlling shareholder

of the Company have respectively issued their own Letter

of Commitments on Avoiding Horizontal Competition.

1. Mango Media as the controlling shareholder of the

Company has issued its Letter of Commitments on

Avoiding Horizontal Competition.

(1) Mango Media and its other subordinate enterprises

other than the Issuer are not engaged in any business or

activity in any form that competes or would compete

directly or indirectly with the business of the Issuer and/or

its subordinate enterprises. (2) Mango Media will and

procure that any enterprises controlled by Mango Media

will adopt effective measures to avoid: (A) engaging in any

business or activities directly or indirectly in any form that

competes or would compete directly or indirectly with the

business of the Issuer and/or its subordinate enterprises or

Commitments on

holding any interests or benefits in such business; (B)

Avoiding

Commitments Hunan supporting any persons other than the Issuer and/or its

Horizontal

made at the time of Broadcasting subordinate enterprises in conducting any business or January 21 Long-

Competition Ongoing

IPO or re- System; Mango activities which compete or would compete with the 2015 term

Related-party

financing Media Co. Ltd. business currently conducted or presently proposed to be

Transactions and

conducted by the Issuer and/or its subordinate enterprises.Fund Use

(3) If Mango Media and its subordinate enterprises have

any business opportunity of carrying out participating in or

holding shares in any business or activity that would

compete with the business conducted by the Issuer and/or

its subordinate enterprises then the Issuer and/or its

subordinate enterprises shall have preferred rights with

respect to such business opportunity. (4) Mango Media as

the shareholder of the Issuer will not engage in any

business or activity that damages or would damage the

interests of the Issuer and/or its subordinate enterprises by

utilizing the status of the shareholder the rights to which

the shareholder is entitled and the information obtained in

accordance with the relevant laws regulations and the

Articles of Association including but not limited to the

trade secrets of the Issuer and/or its subordinate enterprises.Mango Media agrees to bear and be liable for all losses

damage and costs caused to the Issuer and/or its

subordinate enterprises due to breach of the

aforementioned commitments.

2. Commitments on avoiding horizontal competition and

63Mango Excellent Media Co. Ltd. Annual Report 2023

constraint measures of the actual controller

(1) Letter of Overall Commitments issued by Hunan

Broadcasting System

On March 29 2012 Hunan Broadcasting System as the

actual controller of the Company issued the Letter of

Commitments on Avoiding Horizontal Competition

undertaking that: * Hunan Broadcasting System and its

other subordinate enterprises other than the Issuer are not

engaged in any business or activity in any form that

competes or would compete with the business of the Issuer

and/or its subordinate enterprises directly or indirectly. *

Hunan Broadcasting System will and procure that any

enterprises controlled by Hunan Broadcasting System will

adopt effective measures to avoid: (A) engaging in any

business or activities directly or indirectly in any form that

competes or would compete with the business of the Issuer

and/or its subordinate enterprises or holding any interests

or benefits in such business; (B) supporting any persons

other than the Issuer and/or its subordinate enterprises in

conducting any business or activities which compete or

would compete with the business currently conducted or

presently proposed to be conducted by the Issuer and/or its

subordinate enterprises. * If Hunan Broadcasting System

and its subordinate enterprises have any business

opportunity of carrying out participating in or holding

shares in any business or activity which would compete

with the business conducted by the Issuer and/or its

subordinate enterprises then the Issuer and/or its

subordinate enterprises shall have preferred rights with

respect to such business opportunity. Hunan Broadcasting

System agrees to bear and be liable for all losses damage

and costs caused to the Issuer and its subordinate

enterprises due to breach of the aforementioned

commitments.(II) Letter of Commitments on Avoiding Fund Use

The controlling shareholder and the actual controller of the

Company undertake that: they will strictly comply with the

provisions of the laws regulations normative documents

and the Company’s relevant rules and systems not

appropriate or use the Company’s assets or resources in any

form nor do anything directly or indirectly which harms or

would harm the interests of the Company and other

shareholders. If the rights and interests of the Company or

other shareholders are harmed due to breach of the

aforementioned commitments and undertakings the

controlling shareholder and the actual controller will be

liable for compensation in accordance with law.We undertake not to sell any shares held by us in the Listed

Commitments on Company including the additional shares that we may

Other Mango Media Co. August 28 August

not Reducing receive due to any distribution of bonus shares Ongoing

Commitments Ltd. 2023 27 2024

Shareholdings capitalization of capital reserve share allotment or

otherwise within 12 months from August 28 2023.Fulfill the

commitments on Yes

time or not

2. If the Company has made any profit forecast on its assets or project and the Reporting Period falls within

the period of such profit forecast explanation about whether the forecast profit has been achieved and the

related reasons

□Applicable □ N/A

Reason of

Forecast

Actual result failure to Disclosure

Underlying Beginning result of the

End time of of the current achieve the date of the Disclosure index (if

asset or time of current

forecast period forecast original any)

project forecast period

(RMB0’000) profit (if forecast

(RMB0’000)

applicable)

Announcement of

Acquisition of

Golden

January 1 December July 26 100% Shares of

Eagle 4625.38 4754.32 N/A

2023 31 2025 2023 Hunan Golden

Cartoon

Eagle Cartoon

Media Co. Ltd. by

64Mango Excellent Media Co. Ltd. Annual Report 2023

Cash and Related-

party Transaction

(Announcement

No.: 2023-046)

disclosed on

www.cninfo.com.cn

on July 26 2023

Commitments made by the shareholders and counterparties of the Company with respect to the annual operating results of the

Company or related assets:

□Applicable □ N/A

See the Announcement of Acquisition of 100% Shares of Hunan Golden Eagle Cartoon Media Co. Ltd. by Cash and Related-party

Transaction (Announcement No. 2023-046) disclosed on www.cninfo.com.cn on July 26 2023.Fulfillment of the commitment on operating results and effect on the assessment of impairment loss on goodwill:

Golden Eagle Cartoon has fulfilled the commitment on operating results for 2023.II. Appropriation of non-operating funds of the Listed Company by the controlling shareholder

and other related parties

□Applicable □ N/A

In RMB0’000

Balance

New

Proportion Total Proportion as of the

appropriated Estimated

Shareholders Type of of the repayments of the disclosure Estimated Estimated

Appropriation Reason for Opening amount Closing repayment

or related related latest during the latest date of repayment repayment

period appropriation balance during the balance time

parties relationship audited Reporting audited the method amount

Reporting (month)

net assets Period net assets annual

Period

report

Shanghai

Mamma Mia

Borrowings for

Interactive Cash

Others 7 years production and 232.98 0 0.00% 30 202.98 0.00% 202.98 202.98 May 2026

Entertainment settlement

operation

Technology

Co. Ltd.Total 232.98 0 0.00% 30 202.98 0.00% 202.98 202.98

In order to support the business development of Shanghai Mamma Mia Interactive Entertainment Technology Co.Relevant decision procedures Ltd. (“Mamma Mia”) which was originally a wholly-owned subsidiary of Happy News Mamma Mia would be

supported with liquidity from Happy News through Happy News’ internal approval and decision-making process.Reasons for new appropriation of non-operating funds by

controlling shareholders and other related parties and

description of the responsible persons’ accountability and N/A

proposed measures by the Board of Directors in the current

period

In December 2016 Happy News transferred 70% of the equity shares of Mamma Mia externally (to non-controlling

Reasons for failure to settle appropriated non-operating funds shareholders and their affiliates) so that Mamma Mia was no longer included in the scope of consolidation of Happy

as planned and description of accountability and proposed News. At present Happy News still holds 24.25% of the equity shares of Mamma Mia. In order to ensure stable

measures by the Board of Directors in the current period development of Mamma Mia Happy News and Mamma Mia signed Repayment Plan which stipulates monthly

repayment of RMB 50000 since January 2022 until the loan is paid off.Pan-China Certified Public Accountants LLP believes that the summary sheet prepared by management of Mango

Excellent Media complies with the provisions of Guideline No. 8 on Regulation of Listed Companies – Regulatory

Special review opinions on appropriation of funds given by Requirements on Fund Transfer and External Guarantee of Listed Companies (CSRC Announcement (2022) No.accounting firm 26) and Guideline No. 1 on Self-discipline Regulation of Companies Listed at of the Shenzhen Stock Exchange –

Business Handling (Revised in February 2023) (SZS (2023) No. 135) in all material aspects truly reflecting

appropriation of non-operating funds and transfer of other related capitals of Mango Excellent Media in 2023.Reasons for inconsistency between appropriation of non-

operating funds by the controlling shareholder and other related

N/A

parties disclosed in the Company’s annual report and that in the

special audit opinion

65Mango Excellent Media Co. Ltd. Annual Report 2023

III. External Guarantees in Violation of Regulations

□Applicable □N/A

The Company has no external guarantees in violation of regulations during the Reporting Period.IV. Explanations from the Board of Directors for the “Modified Auditor’s Report” Issued Most

Recently

□Applicable □N/A

V. Explanations from the Board of Directors the Board of Supervisors the Independent

Directors (if any) for the “Modified Auditor’s Report” Issued by the Engaged Accounting Firm

during the Reporting Period

□Applicable □N/A

VI. Explanation from the Board of Directors for Accounting Policies and Accounting Estimate

Change and Significant Accounting Mistake Correction

□Applicable □N/A

Explanation about changes in the accounting policies:

Since January 1 2023 we have applied the Interpretation of the Accounting Standards for Business Enterprises No. 16 issued by the

Ministry of Finance and pursuant to the provisions regarding transition between old and new standards treated the cumulative effect

of the adoption of the new standard as an adjustment to the opening retained earnings and other related financial statement items for

the current period. See “V. Significant Accounting Policies and Accounting Estimates” under “Section X Financial Report” for details.VII. Explanation for Changes in the Scope of Consolidated Financial Statements Comparing

with Those in Prior Year

□Applicable □N/A

During the Reporting Period we acquired Golden Eagle Cartoon through a business combination involving entities under common

control and deregistered Beijing Happy Mango Culture Media Co. Ltd. See “IX. Changes in Scope of Consolidation” under “SectionX Financial Report” for details.VIII. Engagement and Dismissal of the Accounting Firm

Current certified public accountants

Domestic certified public accountants Pan-China Certified Public Accountants LLP

Remuneration paid to the domestic certified public accountants

198

(in RMB0’000)

Audit period of the domestic accounting firm 8

Name of the engaged certified public accountants ZHENG Shengjun and HU Jian

Audit period of the engaged certified public accountants 2 years for ZHENG Shengjun and 2 years for HU Jian

Whether the certified public accountant is changed

□Yes □No

Description of engaging certified public accountants financial advisor or sponsor for internal control

□Applicable □N/A

66Mango Excellent Media Co. Ltd. Annual Report 2023

IX. Delisting Subsequent to the Disclosure of the Annual Report

□Applicable □N/A

X. Bankruptcy and Reorganization

□Applicable □N/A

The Company has no matters with respect to bankruptcy and reorganization during the Reporting Period.XI. Material Litigation or Arbitration

□Applicable □N/A

The Company involves in no material litigation or arbitration during the year.XII. Penalty and Rectification

□Applicable □N/A

The Company has no penalty and rectification during the Reporting Period.XIII. Integrity of the Company and its Controlling Shareholder and Actual Controller

□Applicable □N/A

XIV. Significant Related-party Transactions

1. Related-party transactions related to daily operations

□Applicable □N/A

Exceed

Proportion Approved Available

Amount the

Related-party Pricing of similar trading Mode of market price Disclosure Disclosure

Related-party Type Content Price (in approved

relationship principle trading amount (in settlement of similar date index

RMB0’000) amount or

amount RMB0’000) transactions

not

Under

common Acceptance

Copyright Market Bank April 22

GBS control of the of labor

etc. pricing 86300.26 86300.26 8.80% 78130

Yes

transfer 86300.26 2023

same actual service

controller

Under

common Advertisin

Rendering of Market Bank April 22

GBS control of the g release

labor service pricing 67609.33 67609.33 4.62% 90000

No

transfer 67609.33 2023

same actual etc.Announcement

controller

of Estimated

Yunhong Company

Daily Related-

Communication materially Acceptance

Advertisin Market Bank April 22 party

Technology affected by of labor No

g service pricing 17234.19 17234.19 1.76% 20000 transfer 17234.19 2023 Transactions in

(Guangzhou) the actual service

2023 disclosed

Co. Ltd. controller

on

Yunhong Company

www.cninfo.co

Communication materially

Rendering of Advertisin Market Bank April 22 m.cn

Technology affected by No

labor service g release pricing 56631.6 56631.6 3.87% 81000 transfer 56631.6 2023

(Guangzhou) the actual

Co. Ltd. controller

MIGU Culture Acceptance

Sharing the Bandwidt Market Bank April 22

Technology Co. of labor

key manager h etc. pricing 9678.04 9678.04 0.99% 12187

No

transfer 9678.04 2023

Ltd. service

MIGU Culture

Sharing the Rendering of Operator Market 269954.7 Bank April 22

Technology Co. Yes

key manager labor service revenue pricing 269954.76 18.45% 265000 269954.76

Ltd. 6

transfer 2023

Total -- -- 507408.18 -- 546317 -- -- -- -- --

67Mango Excellent Media Co. Ltd. Annual Report 2023

Details of return of goods in large sales None

Actual performance during the Reporting Period (if any)

in the event that the total amount of the daily related-

None

party transactions to occur in the current period is

expected by categories

Reasons for the large difference between the trading price

N/A

and the market reference price (if applicable)

2. Related-party transactions related to acquisition or disposal of assets and equities

□Applicable □N/A

Carrying Appraisal

Related- value of value of Transfer Trading

Related- Pricing Mode of Disclosure

party Type Content transferred transferred price profit or loss Disclosure index

Party principle settlement date

relationship assets assets (RMB0’000) (RMB0’000)

(RMB0’000) (RMB0’000)

Announcement of

Acquisition of

100% Shares of

Hunan Golden

100%

Eagle Cartoon

Mango shares

Media Co. Ltd. by

Media Parent Share of Appraisal Bank October

19667.92 83479.51 83479.51 0 Cash and Related-

Co. company acquisition Golden value transfer 24 2023

party Transaction

Ltd. Eagle

(Announcement

Cartoon

No.: 2023-046)

disclosed on

www.cninfo.com.cn

on July 26 2023

Reasons for significant difference

between transfer price and carrying value None.or appraisal value (if any)

Impact on the Company’s operating

The effect on the net profit of the Listed Company was RMB63473700.results and financial situation

The performance realization during the

The net profit of Golden Eagle Cartoon attributable to the shareholders of the Listed Company after deduction

Reporting Period if the related-party

of non-recurring gain or loss was RMB47543200 for the Reporting Period which achieved its performance

transaction involves performance

commitment for 2023.agreement

3. Related-party transactions related to joint external investment

□Applicable □N/A

The Company has no related-party transactions involving joint external investments during the Reporting Period.

4. Credits and debits with related parties

□Applicable □N/A

Whether there are non-operating credits and debits with related parties

□Yes □No

Credits due from related parties

Whether Current Current

Opening Current Closing

there is any increased recovered

Reason of balance Interest interest balance

Related-party Relation non- amount amount

formation (RMB0’00 rate (RMB0’00 (RMB0’00

operating (RMB0’00 (RMB0’00

0)0)0)

fund use 0) 0)

Mango Accounts

Subsidiary No 8000 8000

Entertainment current

Happy Profit

Subsidiary No 30000 60000 90000 0

Sunshine distribution

68Mango Excellent Media Co. Ltd. Annual Report 2023

Impact of related-party

creditor’s rights on the

No material impact

Company’s operating

results and financial status

Debts due to related-party

Current Current

Opening Current Closing

increased recovered

Related- Reason of balance interest balance

Relation amount amount Interest rate

party formation (RMB0’00 (RMB0’00 (RMB0’00

(RMB0’00 (RMB0’00

0)0)0)

0)0)

5. Transactions with finance companies having related-party relationship

□Applicable □N/A

The Company has no deposit loan credit facility or other financial business with finance companies having related-party relationship

and related parties.

6. Transactions between finance companies controlled by the Company and related parties

□Applicable □N/A

Finance companies controlled by the Company have no deposit loan credit facility or other financial business with related parties.

7. Other significant related-party transactions

□Applicable □N/A

The Company has no other significant related-party transactions during the Reporting Period.XV. Significant Contracts and Performances Thereof

1. Trusteeship contracting and leasing

(1) Trusteeship

□Applicable □N/A

No such case during the Reporting Period.

(2) Contracting

□Applicable □N/A

No such case during the Reporting Period.

(3) Leases

□Applicable □N/A

No such case during the Reporting Period.

2. Significant guarantee

□Applicable □N/A

69Mango Excellent Media Co. Ltd. Annual Report 2023

No such case during the Reporting Period.

3. Entrusted management of cash assets

(1) Entrusted wealth management

□Applicable □N/A

Overview of entrusted wealth management during the Reporting Period

In RMB0’000

Impaired amount of

Capital sources of

Amount of entrusted Amount overdue wealth management

Specific type entrusted wealth Undue balance

wealth management and not recovered overdue and not

management

recovered

Bank wealth

management Own funds 181000 45200 0 0

product

Bank wealth

management Raised funds 209500 60000 0 0

product

Total 390500 105200 0 0

Details of high-risk entrusted wealth management with significant single amount or poor security and liquidity

□ Applicable □N/A

Expected unavailability to recover the principal or other situations that may lead to impairment with respect to entrusted wealth

management

□ Applicable □N/A

(2) Entrusted loans

□Applicable □N/A

No such case during the Reporting Period.

4. Other significant contracts

□Applicable □N/A

No such case during the Reporting Period.XVI. Description of Other Significant Matters

□Applicable □N/A

On July 25 2023 at the 17th meeting of the 4th Board of Directors and the 15th meeting of the 4th Board of Supervisors the Proposal

Regarding Acquisition of 100% Shares of Hunan Golden Eagle Cartoon Media Co. Ltd. by Cash and Related-party Transaction was

considered and adopted approving the acquisition by us of 100% shares of Golden Eagle Cartoon using RMB834795100 of self-

owned funds. On October 20 2023 Golden Eagle Cartoon completed the relevant alteration filing procedures with the administration

for industry and commerce and became one of our wholly-owned subsidiaries included in our scope of consolidation. See the

Announcement of Acquisition of 100% Shares of Hunan Golden Eagle Cartoon Media Co. Ltd. by Cash and Related-party Transaction

(Announcement No. 2023-046) and the Announcement of Completion of the Alteration Filing Procedures Related to the Acquisition

of 100% Shares of Hunan Golden Eagle Cartoon Media Co. Ltd. by Cash and Related-party Transaction (Announcement No. 2023-

056) disclosed on www.cninfo.com.cn on July 26 2023 and October 24 2023 respectively for details.

XVII. Description of Significant Matters of the Company’s Subsidiaries

□Applicable □N/A

70Mango Excellent Media Co. Ltd. Annual Report 2023

On July 18 2023 Xiaomang E-commerce completed the relevant alteration filing procedures with the administration for industry and

commerce and turned from a subsidiary controlled by our wholly-owned subsidiary Happy Sunshine into a subsidiary directly

controlled by us.

71Mango Excellent Media Co. Ltd. Annual Report 2023

Section VII Share Changes and Information of Shareholders

I. Share changes

1. Share changes

Unit: Shares

Before this change Increase or decrease this time (+-) After this change

Capitaliza

Proporti New Bonus tion of Proportio

Number Others Sub-total Number

on shares shares capital n

reserve

I. Restricted share 849020857 45.38% 0 0 0 0 0 849020857 45.38%

1. Shareholdings

00.00%0000000.00%

by the state

2. Shareholdings

by the state-

84901973245.38%0000084901973245.38%

owned legal

persons

3. Other

shareholdings by

11250.00%0000011250.00%

domestic

investors

Incl.:

shareholdings by

00.00%0000000.00%

domestic legal

persons

Shareholdings by

domestic natural 1125 0.00% 0 0 0 0 0 1125 0.00%

persons

4. Shareholdings

by foreign 0 0.00% 0 0 0 0 0 0 0.00%

investors

Incl.:

shareholdings by

00.00%0000000.00%

overseas legal

persons

Shareholdings by

overseas natural 0 0.00% 0 0 0 0 0 0 0.00%

persons

II. Unrestricted

102169995854.62%00000102169995854.62%

share

1. RMB ordinary

102169995854.62%00000102169995854.62%

share

2. Domestic listed

00.00%0000000.00%

foreign share

3. Overseas listed

00.00%0000000.00%

foreign share

4. Others 0 0.00% 0 0 0 0 0 0 0.00%

III. Total 1870720815 100.00% 0 0 0 0 0 1870720815 100.00%

Reasons for share changes

□Applicable □N/A

Approval of share changes

□Applicable □N/A

Description of registration of share changes

72Mango Excellent Media Co. Ltd. Annual Report 2023

□Applicable □N/A

Effect of share changes on financial indicators in the most recent year and the most recent period such as basic earnings per share

diluted earnings per share net assets per share attributable to the Company’s shareholders of ordinary shares

□Applicable □N/A

Other information that the Company deemed as necessary or security regulators require to be disclosed

□Applicable □N/A

2. Restricted share changes

□Applicable □N/A

II. Shares issuing and listing

1. Securities issuing during the Reporting Period (excluding preferred shares)

□Applicable □N/A

2. Explanation for changes in the Company’s total shares shareholder structure and structure of assets

and liabilities

□Applicable □N/A

3. Current shares subject to employee share ownership plan

□Applicable □N/A

III. Shareholders and actual controllers

1. Description of the Number of the Company’s shareholders and shares held by them

Unit: Shares

Total

preferred

shareholders

Total ordinary Total preferred (if any) with

Total

shareholders shareholders recovered

shareholders

Total ordinary as of the end (if any) with voting rights

(if any)

shareholders of the month recovered as of the end

56718 62435 0 0 holding 0

as of the end prior to the voting rights of the month

special

of the period disclosure date as of the end prior to the

voting right

of annual of the period disclosure

shares

report (Note 9) date of

annual

report (Note

9)

Information of shareholders holding 5% or more of shares or top 10 shareholders (excluding the shares lent via refinancing)

Closing Number of Number of

Name of Nature of Shareholding Increase or Pledged marked or frozen

shareholding restricted unrestricted

shareholders shareholder ratio decrease

quantity shares held shares held Status Quantity

Mango Media State-owned

Co. Ltd. corporation 56.09% 1049300301 0 849019732 200280569

N/A 0

Zhongyi

Capital State-owned

Holding Group corporation 7.01% 131188792 0 0 131188792

N/A 0

Limited

Hunan Caixin

Jingguo Equity State-owned

N/A 0

Investment corporation 5.01% 93647857 0 0 93647857

Partnership

73Mango Excellent Media Co. Ltd. Annual Report 2023

(LP)

Hong Kong

Securities

Foreign

Clearing

corporation 3.15% 58844957 1831245 0 58844957

N/A 0

Company

Limited

China Life

Insurance Co.Ltd. –

Traditional –

General Others 0.54% 10159284 7545157 0 10159284 N/A 0

Insurance

Product 005L-

CT001

(Shanghai)

Industrial and

Commercial

Bank of China

Others

Limited – E- 0.49% 9080876 5814380 0 9080876

N/A 0

Fund ChiNext

ETF

Hua Life

Insurance Co.Others

Ltd. – Self- 0.36% 6712900 5301700 0 6712900

N/A 0

owned funds

National

Social Security

Others

Fund Portfolio 0.36% 6643867 6373567 0 6643867

N/A 0

604

Dajia Life

Insurance Co.Ltd. – Others 0.32% 6006700 6006700 0 6006700 N/A 0

Universal

product

National

Social Security

Others

Fund Portfolio 0.31% 5799992 5799992 0 5799992

N/A 0

414

Strategic investors or general

corporations becoming top 10

ordinary shareholders as a None

result of rights issue (if any)

(Note 4)

Related-party relationship or

There is no related-party relationship or concerted action relationship between Mango Media Co. Ltd. as the controlling shareholder of

concerted action relationship

the Company and other top 10 shareholders; we are not aware whether or not there is a related-party relationship or concerted action

among the aforementioned

relationship among other top 10 shareholders.shareholders

Explanation for

entrusting/accepting entrusted

voting rights and waiver of None

voting rights regarding above

shareholders

Special explanation about any

special account for repurchase

None

opened by any top 10

shareholder (if any) (Note 10)

Shareholdings of top 10 unrestricted shareholders

Type

Name of shareholders Number of unrestricted shares held at the end of the Reporting Period

Type Number

Mango Media Co. Ltd. 200280569 RMB ordinary shares 200280569

Zhongyi Capital Holding

RMB ordinary shares

Group Limited 131188792 131188792

Hunan Caixin Jingguo Equity

RMB ordinary shares

Investment Partnership (LP) 93647857 93647857

Hong Kong Securities Clearing

58844957 RMB ordinary shares Company Limited 58844957

China Life Insurance Co. Ltd.– Traditional – General

Insurance Product 005L-CT001 10159284

RMB ordinary shares 10159284

(Shanghai)

Industrial and Commercial

Bank of China Limited – E- 9080876 RMB ordinary shares 9080876

Fund ChiNext ETF

Hua Life Insurance Co. Ltd. –

RMB ordinary shares

Self-owned funds 6712900 6712900

National Social Security Fund

RMB ordinary shares

Portfolio 604 6643867 6643867

74Mango Excellent Media Co. Ltd. Annual Report 2023

Dajia Life Insurance Co. Ltd.RMB ordinary shares

– Universal product 6006700 6006700

National Social Security Fund

5799992 RMB ordinary shares Portfolio 414 5799992

Explanation for related-party

relationship or concerted

actions between top 10 There is no related-party relationship or concerted action relationship between Mango Media Co. Ltd. as the controlling shareholder of

unrestricted outstanding the Company and other top 10 unrestricted outstanding shareholders; we are not aware whether or not there is a related-party relationship

shareholders and between top or concerted action relationship among top 10 unrestricted outstanding shareholders and between top 10 unrestricted outstanding

10 unrestricted outstanding shareholders and top 10 shareholders.

shareholders and top 10

shareholders

Special explanation about any

shareholder operating margin

None

financing and short selling business

(if any) (Note 5)

Share lending by top 10 shares via refinancing:

□Applicable □N/A

Unit: Shares

Share lending by top 10 shares via refinancing

Number of shares held in Number e of shares held

Number of outstanding Number of outstanding

ordinary account and in ordinary account and

shares lent via refinancing shares lent via refinancing

margin trading account at margin trading account at

Full name at the beginning of the at the end of the current

the beginning of the the end of the current

of current period period

current period period

shareholder

% of total % of total % of total % of total

Total Total Total Total

share share share share

number number number number

capital capital capital capital

Industrial

and

Commercial

Bank of

China 3266496 0.17% 854600 0.05% 9080876 0.49% 140000 0.01%

Limited –

E-Fund

ChiNext

ETF

National

Social

Security

2703000.01%73000.00%66438670.36%00.00%

Fund

Portfolio

604

Changes in top 10 shareholders compared to the prior period:

□Applicable □N/A

Unit: Shares

Changes in top 10 shares compared to the end of the prior period

Number of shares held in ordinary account and

Number of outstanding shares lent via margin trading account and outstanding shares

New or withdrawn

Full name of refinancing at the end of the current period lent via refinancing at the end of the current

shareholder in the

shareholder period

current period

% of total share

Total number Total number % of total share capital

capital

China Life Insurance

Co. Ltd. – Traditional

– General Insurance New 0 0.00% 10159284 0.54%

Product 005L-CT001

(Shanghai)

Industrial and

Commercial Bank of

New

China Limited – E- 140000 0.01% 9220876 0.49%

Fund ChiNext ETF

Hua Life Insurance

Co. Ltd. – Self-owned New 0 0.00% 6712900 0.36%

funds

National Social

Security Fund New 0 0.00% 6643867 0.36%

Portfolio 604

75Mango Excellent Media Co. Ltd. Annual Report 2023

Dajia Life Insurance

Co. Ltd. – Universal New 0 0.00% 6006700 0.32%

product

National Social

Security Fund New 0 0.00% 5799992 0.31%

Portfolio 414

China Merchants Bank

Co. Ltd. - Xingquan

Herun Hybrid Withdrawn 0 0.00% 0 0.00%

Securities Investment

Fund

China Merchants Bank

Co. Ltd. - Xingquan

Heyi Flexible

Withdrawn

Allocation Hybrid 0 0.00% 0 0.00%

Securities Investment

Fund (LOF)

Industrial and

Commercial Bank of

China Limited -

Xingquan Green Withdrawn 0 0.00% 0 0.00%

Investment Hybrid

Securities Investment

Fund (LOF)

Industrial Bank Co.Ltd. - Xingquan Qushi

Investment Hybrid Withdrawn 0 0.00% 0 0.00%

Securities Investment

Fund

China Merchants Bank

Co. Ltd. - Xingye

Xingrui 2-Year Hybrid Withdrawn 0 0.00% 0 0.00%

Securities Investment

Fund

Industrial and

Commercial Bank of

China Limited - GF Withdrawn 0 0.00% 5033661 0.27%

China Securities

Media LOF

Whether the Company has made arrangement for voting right differences

□Applicable □N/A

Whether the Company’s top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders have engaged in an agreed

repurchase transaction during the Reporting Period

□Yes □No

The Company’s top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders have no agreed repurchase transaction

during the Reporting Period.

2. Controlling shareholder of the Company

Nature of the controlling shareholder: Local state-owned holding company

Type of the controlling shareholder Legal person

Legal

Controlling

representative/responsi Date of incorporation Organization code Principal activities

shareholder

ble person

Planning production

and operation of radio

and television

programs; investments

in culture sports

Mango Media Co. Ltd. ZHANG Huali July 10 2007 914300006707880875

entertainment media

technology Internet

and other industries by

self-owned funds

(excluding national

76Mango Excellent Media Co. Ltd. Annual Report 2023

financial supervision

and financial credit

businesses such as

deposit absorption

fund collection

entrusted loans notes

and loans issuance);

advertising planning

production and

operation; multimedia

technology

development and

operation. (Projects

required for legal

approval shall be

operated on the

premise of being

approved by relevant

authorities)

Shares held in other

domestic or foreign

listed companies

controlled or invested None

by the controlling

shareholder during the

Reporting Period

Change of the controlling shareholder during the Reporting Period

□Applicable □N/A

There was no change in the controlling shareholder of the Company during the Reporting Period.

3. Actual controller and its acting-in-concert parties of the Company

Nature of the actual controller: Local state capital management institution

Type of the controlling shareholder: Legal person

Legal

Actual controller representative/responsi Date of incorporation Organization code Principal activities

ble person

Hunan State-owned Perform the

Cultural Assets responsibilities of

Supervision and - May 27 2015 - provincial state-owned

Administration cultural enterprise as a

Commission contributor

Equity of other

domestic and oversea

listed companies

Directly holding 16.66% of shares in Hunan TV & Broadcast Intermediary Co. Ltd.controlled by the actual

controller during the

Reporting Period

Change of the actual controller during the Reporting Period

□Applicable □N/A

There was no change in the actual controller of the Company during the Reporting Period.Block diagram for the ownership and controlling relationship between the Company and the actual controller

77Mango Excellent Media Co. Ltd. Annual Report 2023

Hunan State-owned Cultural Assets Supervision and

Administration Commission

100% shares

Golden Eagle Broadcasting System Co. Ltd.

100 % shares

Mango Media Co. Ltd.

56.09 % shares

Mango Excellent Media Co. Ltd.\

The Company is controlled by the actual controller through trust funds or other asset management methods

□Applicable □N/A

4. The Company’s controlling shareholder or top 1 shareholder and its acting-in-concert parties pledged

more than 80% in total of the Company’s shares held by them

□Applicable □N/A

5. Other institutional shareholders owning over 10% of shares

□Applicable □N/A

6. Restrictions on shareholding reduction of the controlling shareholder actual controller restructuring

parties and other commitment subjects

□Applicable □N/A

IV. Specific implementation of share repurchases during the Reporting Period

Implementation progress of share repurchase

□Applicable □N/A

Progress of reducing repurchased shares by means of centralized auction trading

□Applicable □N/A

78Mango Excellent Media Co. Ltd. Annual Report 2023

Section VIII Preference Shares

□Applicable □N/A

The Company has no preferred shares during the Reporting Period.

79Mango Excellent Media Co. Ltd. Annual Report 2023

Section IX Bonds

□Applicable □N/A

80Mango Excellent Media Co. Ltd. Annual Report 2023

Section X Financial Report

I. Auditor’s Report

Audit opinion Unmodified Opinion

Signing date of audit report April 18 2024

Auditor Pan-China Certified Public Accountants LLP

Audit report document No. Tian Jian Shen (2024) 2-191

Name of certified public accountants ZHENG Shengjun and HU Jian

Auditor’s Report

To all shareholders of Mango Excellent Media Co. Ltd.:

I. Audit opinion

We have audited the financial statements of Mango Excellent Media Co. Ltd. (“Mango Excellent Media”) which comprise the

consolidated and the parent company’s balance sheets as at December 31 2023 and the consolidated and the parent company’s income

statements the consolidated and the parent company’s statements of cash flow and the consolidated and the parent company’s

statements of changes in owners’ equity for the year then ended and the notes to the financial statements.In our opinion the accompanying financial statements are prepared in all material respects in accordance with Accounting

Standards for Business Enterprises and fairly present the consolidated and the parent company’s financial position as of December 31

2023 and the consolidated and the parent company’s operating results and cash flows for the year then ended.

II. Basis for Opinion

We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further

described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of

Mango Excellent Media in accordance with the Code of Ethics for Chinese Institute of Certified Public Accountants (“the Code”) and

we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained

is sufficient and appropriate to provide a basis for our opinion.III. Key Audit Matters

Key audit matters are those matters that in our professional judgment are of most significance in our audit of the financial

statements for the current period. These matters were addressed in the context of our audit of the financial statements as a whole and

in forming our opinion thereon and we do not express a separate opinion on these matters.(I) Revenue recognition

1. Descriptions

Details of relevant information are disclosed in Note III (XXIII) V(II)1 and XIV(I) to the financial statements.The operating revenue of Mango Excellent Media is mainly from new media platform operation new media interactive

entertainment content production and media retail etc. In 2023 the operating revenue of Mango Excellent Media amounted to

RMB14628016300 of which the operating revenue from the segments including new media platform operation and new media

interactive entertainment content production amounted to RMB11763971400 accounting for 80.42 % thereof.As the operating revenue is one of Mango Excellent Media’s KPIs there may be an inherent risk that the management of Mango

Excellent Media (“management”) may recognize the revenue inappropriately to achieve specific objectives or expectations. Meanwhile

revenue recognition also needs complex information systems and significant management judgment. Therefore we identified revenue

recognition as a key audit matter.

2. Audit response

Our audit procedures related to revenue recognition included the following among others:

(1) Understand the key internal controls related to revenue recognition evaluate the design of those controls determine whether

they are implemented and test the operational effectiveness of the relevant internal controls;

(2) Test general information system controls and application controls related to the revenue recognition process by virtue of the

work results of the in-house information technology experts;

(3) Examine major sales contracts understand the major terms or conditions thereof and evaluate whether revenue recognition

methods are proper;

(4) Implement substantive analysis procedures for operating revenue and gross margin by month product customer etc. to

identify whether there are significant or unusual fluctuations and to find out the causes of such fluctuations;

(5) Sample contracts licenses settlements receipts and sign-offs to make test of details according to different types of revenues

and pay attention to the business content of the related sales and their commercial reasonableness;

(6) In conjunction with accounts receivable confirmation procedures send confirmation to major customers to recognize the

current sale volumes on a sample basis;

(7) Conduct the cut-off test on the operating revenues recognized about the balance sheet date to evaluate whether the operating

revenues are recognized appropriately;

(8) Obtain a record of sales returns after the balance sheet date to check if there is any instance that conditions for revenue

recognition were not met at the balance sheet date; and

81Mango Excellent Media Co. Ltd. Annual Report 2023

(9) Check whether information relating to operating revenue is properly presented and disclosed in the financial statements.

(II) Recognition of deferred tax assets

1. Descriptions

Details of relevant information are disclosed in Note III(XXVII) Note III(XXX) and Note V(I)18 to the financial statements.As of December 31 2023 Mango Excellent Media recognized RMB1628790200 of deferred tax assets for the year 2023 mainly

arising from temporary differences between the accounting amortization approach for film and TV drama copyright and the

amortization approach set forth in tax law. Since the recognition of deferred tax assets involves complicated calculation of differences

between the accounting amortization approach for film and TV drama copyright and the amortization approach set forth in tax law the

judgment of the availability of taxable income in future periods against which the deductible temporary differences can be utilized

involves estimates and the recognition of deferred tax assets has a significant on accounting profit we identified the recognition of

deferred tax assets as a critical audit matter.

2. Audit response

Our audit procedures related to recognition of deferred tax assets included the following among others:

(1) Assess the design and implementation and test the effectiveness of internal controls related to recognition of deferred tax

assets;

(2) Understand and evaluate the management’s calculation methods for the differences between the accounting amortization

approach for film and TV drama copyright and the amortization approach set forth in tax law and reasonableness of forecast and

assumptions in respect of taxable income available in future periods;

(3) Review the process of calculation of deferred tax assets and ensure they are accurate and comply with the provisions of the

tax law and accounting standards;

(4) Analyze and assess the temporary differences related to film and TV drama copyright and review the historic data assess the

sustainability of forecasts and changes in the relevant tax laws and regulations; and

(5) Communicate with the tax advisor to obtain professional opinions on the relevant tax law and assess the effect on the

recognition of deferred tax assets.(III) The carrying amount of content copyrights

1. Descriptions

Details of relevant information are disclosed in Note III (XIII) Note III (XVIII) and Note V (I) 8 and Note V (I) 15 to the financial

statements.As of December 31 2023 the carrying amount of Mango Excellent Media’s content copyrights such as online information

dissemination rights screenplays and film and television series was RMB9445987200; of which intangible assets were

RMB7814463500 and stocks were RMB1631523700.The management makes significant judgment to evaluate the carrying amount of content copyrights such as online information

dissemination rights screenplays and film and television series. In making such evaluation the management considers all possible

factors that may affect the future broadcasting production and distribution plans of the content copyrights such as the online

information dissemination rights screenplays and film and television series the saleable or booking prices of film and television series

the discount rate and the current market environment to judge the expectation of obtaining future cash flows. The amount of content

copyrights such as online information dissemination rights screenplays and film and television series is material and involves

significant management judgments therefore we identify the carrying amount of content copyrights such as online information

dissemination rights screenplays and film and television series as a key audit matter.

2. Audit response

For the carrying amount of content copyrights such as online information dissemination rights screenplays and film and television

series our audit procedures include inter alia:

(1) Understand the key internal controls related to content copyrights such as online information dissemination rights screenplays

and film and television series evaluate the design of those controls determine whether they are implemented and test the operational

effectiveness of the relevant internal controls;

(2) Know and evaluate the reasonableness of amortization policies of online information dissemination rights and implement

computer-aided audit procedure for amortization information system of online information dissemination rights;

(3) Evaluate the reasonableness of accounting policies related to content copyrights such as online information dissemination

rights screenplays and film and television series by comparing relevant accounting standards and industry practice benchmarks and

test the management’s assessment of the recoverable amount of content copyrights such as online information dissemination rights

screenplays and film and television series on a project basis based on the materiality level of the closing balance of net value of content

copyrights such as online information dissemination rights screenplays and film and television series;

(4) Inspect selected relevant agreements for the purchase of content copyrights such as online information dissemination rights

and screenplays and verify the valid period of their licenses to evaluate the reasonableness of their net realizable values. For self-

produced film and television series select projects and discuss with the management to understand the current market environment

their future production and distribution plans;

(5) Inspect distribution contracts to verify the estimated selling price of content rights such as online information dissemination

rights screenplays and film and television series. For television series that have been produced but have not obtained broadcast licenses

we select projects to compare their projected selling prices with the selling prices available to similar television series so as to assess

their impairment;

(6) Pay attention to public opinion of content rights such as online information dissemination rights screenplays and film and

television series assessing their negative public opinion and discussing with the management that whether there is an expected

withdrawal or failure to complete production;

(7) Check whether information relating to impairment and copyright amortization of content rights such as online information

dissemination rights screenplays and film and television series is properly presented and disclosed in the financial statements;

IV. Other Information

The management is responsible for other information. The other information comprises the information included in the Annual

82Mango Excellent Media Co. Ltd. Annual Report 2023

Report but does not include the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance

conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit

or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is any material misstatement of other information we are required

to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements

The management of Mango Excellent Media is responsible for the preparation and fair presentation of the financial statements in

accordance with Accounting Standards for Business Enterprises and designing implementing and maintaining internal control that is

necessary to enable the financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing Mango Excellent Media’s ability to continue

as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless

the management either intends to liquidate Mango Excellent Media or to cease operations or have no realistic alternative but to do so.Those charged with governance of Mango Excellent Media (“those charged with governance”) are responsible for overseeing

Mango Excellent Media’s financial reporting process.VI. Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion solely to you. Reasonable

assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with China Standards on Auditing

will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if

individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of

these financial statements.As part of an audit in accordance with China Standards on Auditing we exercise professional judgment and maintain professional

skepticism throughout the audit. We also:

(I) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and

perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for

our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud

may involve collusion forgery intentional omissions misrepresentations or the override of internal control.(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the

circumstances.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related

disclosures made by the management.(IV) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and based on the audit

evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on Mango

Excellent Media’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw

attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate to modify

our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future events or

conditions may cause the Mango Excellent Media to cease to continue as a going concern.(V) Evaluate the overall presentation structure and content of the financial statements and whether the financial statements

represent the underlying transactions and events in a manner that achieves fair presentation;

(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities

within the Mango Excellent Media to express an opinion on the financial statements. We are responsible for the direction supervision

and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit

and significant audit findings including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements

regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our

independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most significance

in the audit of the financial statements for the current period and are therefore key audit matters. We describe these matters in our audit

report unless laws or regulations preclude public disclosure of the matter or when in extremely rare circumstances we determine that

a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to

outweigh the public interest benefits of such communication.Pan-China Certified Public Accountants LLP Certified Public Accountant: ZHENG Shengjun

(Engagement Partner)

Hangzhou China Certified Public Accountant: HU Jian

April 18 2024

83Mango Excellent Media Co. Ltd. Annual Report 2023

II. Financial Statements

Statements in notes to the financial statements are dominated in RMB.

1. Consolidated balance sheet

Prepared by: Mango Excellent Media Co. Ltd.December 31 2023

In RMB

Item December 31 2023 January 1 2023

Current assets:

Cash and bank balances 11882208257.60 10369682100.19

Balances with clearing agencies

Placements with banks and other

financial institutions

Held-for-trading financial assets 1052000000.00 2695000000.00

Derivative financial assets

Notes receivable 34920000.00 1424539500.76

Accounts receivable 3496523370.15 3239435040.40

Receivable financing 698394858.57 49054442.19

Prepayments 1016664374.18 1661390146.29

Premium receivable

Amounts receivable under reinsurance

contracts

Reinsurer’s share of insurance contract

reserves

Other receivables 47852640.07 57117565.37

Incl.: Interest receivable

Dividends receivable

Financial assets purchased under

resale agreements

Inventories 1717435689.33 1608818863.16

Contract assets 838691849.14 929403936.51

Held-for-sale assets

Non-current assets due within one year

Other current assets 130178232.12 113462529.80

Total current assets 20914869271.16 22147904124.67

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 4123864.73

Other investments in equity

instruments

84Mango Excellent Media Co. Ltd. Annual Report 2023

Other non-current financial assets

Investment properties 81084052.23 83381033.60

Fixed assets 142419568.37 173715579.21

Construction in progress

Bearer biological assets

Oil and gas assets

Right-of-use assets 228587413.61 180794786.22

Intangible assets 8113877366.31 6968001679.08

Development expenditure 241848656.69 101832746.23

Goodwill

Long-term prepaid expenses 69653104.00 88341119.22

Deferred tax assets 1628790218.38 6782.33

Other non-current assets 1257003.74 35450007.57

Total non-current assets 10507517383.33 7635647598.19

Total assets 31422386654.49 29783551722.86

Current liabilities:

Bank borrowings 33781325.60 1057932476.80

Loans from the central bank

Taking from banks and other financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1714493274.32 1641001844.25

Accounts payable 5211653685.68 4929885871.44

Receipts in advance

Contract liabilities 1223382815.57 1095959210.88

Financial assets sold under repurchase

agreements

Customer deposits and deposits from

banks and other financial institutions

Funds from securities trading agency

Funds from underwriting securities

agency

Employee benefits payable 1133198261.73 1019793590.40

Taxes payable 271158208.58 208468050.32

Other payables 118868606.40 508775724.99

Incl.: Interest payable

Dividends payable 310000000.00

Fees and commissions payable

Amounts payable under reinsurance

contracts

Held-for-sale liabilities

Non-current liabilities due within one

63380220.7752927194.87

year

85Mango Excellent Media Co. Ltd. Annual Report 2023

Other current liabilities 90565321.21 108136216.45

Total current liabilities 9860481719.86 10622880180.40

Non-current liabilities:

Insurance contract reserves

Long-term borrowings

Bonds payable

Incl.: Preference shares

Perpetual bonds

Lease liabilities 151809003.34 138344104.72

Long-term payables

Long-term employee benefits payable

Estimated liabilities 3156100.00 9038875.00

Deferred income 43207716.48 42775997.77

Deferred tax liabilities 94340.19 227428.11

Other non-current liabilities

Total non-current liabilities 198267160.01 190386405.60

Total liabilities 10058748879.87 10813266586.00

Owner’s equity:

Share capital 1870720815.00 1870720815.00

Other equity instruments

Incl.: Preference shares

Perpetual bonds

Capital reserve 8811414997.63 9646210097.63

Less: Treasury shares

Other comprehensive income 172058.22 157436.90

Special reserve

Surplus reserve 179622015.26 126108937.21

General risk reserve

Undistributed profit 10630492900.32 7371494125.42

Total equity attributable to owners of the

21492422786.4319014691412.16

parent company

Minority interests -128785011.81 -44406275.30

Total owners’ equity 21363637774.62 18970285136.86

Total liabilities and owners’ equity 31422386654.49 29783551722.86

Legal representative: CAI Huaijun CFO: ZHANG Zhihong Chief Accountant: TAO Jinyu

2. Balance sheet of the parent company

In RMB

Item December 31 2023 January 1 2023

Current assets:

Cash and bank balances 282978984.89 536508258.51

Held-for-trading financial assets

86Mango Excellent Media Co. Ltd. Annual Report 2023

Derivative financial assets

Notes receivable

Accounts receivable

Receivable financing

Prepayments 1585821.83 23629.23

Other receivables 80009604.19 380020000.00

Incl.: Interest receivable

Dividends receivable 300000000.00

Inventories

Contract assets

Held-for-sale assets

Non-current assets due within one year

Other current assets 5647818.59 4739926.06

Total current assets 370222229.50 921291813.80

Non-current assets:

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 12173055024.52 11976375839.55

Other investments in equity

instruments

Other non-current financial assets

Investment properties

Fixed assets 228497.46 438682.49

Construction in progress

Bearer biological assets

Oil and gas assets

Right-of-use assets 5351417.43 7135223.31

Intangible assets 599408.36 696395.36

Development expenditure

Goodwill

Long-term prepaid expenses 3056182.69 3920863.29

Deferred tax assets

Other non-current assets

Total non-current assets 12182290530.46 11988567004.00

Total assets 12552512759.96 12909858817.80

Current liabilities:

Short-term borrowings

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable

Receipts in advance

87Mango Excellent Media Co. Ltd. Annual Report 2023

Contract liabilities

Employee benefits payable 49039181.88 54779216.00

Taxes payable 1072123.90 429648.09

Other payables 14345469.63 18721165.76

Incl.: Interest payable

Dividends payable

Held-for-sale liabilities

Non-current liabilities due within one

1773647.851693962.89

year

Others Current liabilities

Total current liabilities 66230423.26 75623992.74

Non-current liabilities:

Long-term borrowings

Bonds payable

Incl.: Preference shares

Perpetual bonds

Lease liabilities 4010907.98 5784555.83

Long-term payables

Long-term employee benefits payable

Estimated liabilities

Deferred income

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities 4010907.98 5784555.83

Total liabilities 70241331.24 81408548.57

Owner’s equity:

Share capital 1870720815.00 1870720815.00

Other equity instruments

Incl.: Preference shares

Perpetual bonds

Capital reserve 9946666892.53 10584782807.56

Less: Treasury shares

Other comprehensive income

Special reserve

Surplus reserve 179622015.26 126108937.21

Undistributed profit 485261705.93 246837709.46

Total owners’ equity 12482271428.72 12828450269.23

Total liabilities and owners’ equity 12552512759.96 12909858817.80

3. Consolidated income statement

In RMB

Item 2023 2022

88Mango Excellent Media Co. Ltd. Annual Report 2023

I. Total operating revenue 14628016301.84 13976774034.92

Incl.: Operating revenue 14628016301.84 13976774034.92

Interest income

Premiums earned

Fee and commission income

II. Total operating costs 12906257244.76 12305534748.08

Incl.: Operating cost 9803006894.94 9208080123.07

Interest expenses

Fee and commission expenses

Surrenders

Claims and policyholder benefits

(net of amounts recoverable from

reinsurers)

Net withdrawal of insurance

contract reserves

Insurance policyholder

dividends

Expenses for reinsurance

accepted

Taxes and surcharges 100115217.83 90965838.45

Selling expenses 2260065273.97 2244824328.98

Administrative expenses 612009007.33 646502018.06

R&D expenses 278728244.78 257607242.41

Financial expenses -147667394.09 -142444802.89

Incl.: Interest expenses 23068674.36 20141897.51

Interest income 208888917.13 200121015.01

Add: Other income 122924507.92 127463901.62

Investment income (loss is

73236767.58133063862.35

indicated by “-”)

Incl.: Income from

investments in associates and joint -4123864.73 -2576746.69

ventures

Income from

derecognition of financial assets

measured at amortized cost

Foreign exchange gains (loss is

indicated by “-”)

Net exposure hedging income

(loss is indicated by “-”)

Gains from changes in fair value

(loss is indicated by “-”)

Credit loss (loss is indicated by

-67536455.57-118469952.32

“-”)

Impairment losses of assets (loss

-32524584.01-49744224.16

is indicated by “-”)

Gains from disposal of assets

1171623.19891438.70

(loss is indicated by “-”)

89Mango Excellent Media Co. Ltd. Annual Report 2023

III. Operating profit (loss is indicated by

1819030916.191764444313.03

“-”)

Add: Non-operating revenue 35532003.82 45628450.37

Less: Non-operating expenses 4005884.29 4490381.74

IV. Total profit (total losses are indicated

1850557035.721805582381.66

by “-”)

Less: Income tax expense -1620769786.67 76071.59

V. Net profit (net loss is indicated by

3471326822.391805506310.07

“-”)

(I) Categorized by the nature of

continuing operation

1. Net profit from continuing

3471326822.391805506310.07

operations (net loss is indicated by “-”)

2. Net profit from discontinued

operations (net loss is indicated by “-”)

(II) Categorized by ownership

1. Net profit attributable to

3555705558.901864245432.69

shareholders of the parent company

2. Profit or loss attributable to

-84378736.51-58739122.62

minority interests

VI. Other comprehensive income net of

14621.32171220.08

tax

Other comprehensive income

attributable to owners of the parent 14621.32 171220.08

company net of tax

(I) Other comprehensive income

that cannot be subsequently reclassified

to profit or loss

1. Changes from re-measurement

of defined benefit plans

2. Other comprehensive income

that cannot be reclassified to profit or

loss under the equity method

3. Changes in fair value of other

investments in equity instruments

4. Changes in fair value of

enterprises’ own credit risks

5. Others

(II) Other comprehensive income

14621.32171220.08

that will be reclassified to profit or loss

1. Other comprehensive income

that will be reclassified to profit or loss

under the equity method

2. Changes in fair value of other

debt investments

3. Amounts of financial assets

reclassified into other comprehensive

income

4. Provision for credit impairment

90Mango Excellent Media Co. Ltd. Annual Report 2023

of other debt investments

5. Reserve for cash flow hedges

6. Translation differences of

financial statements denominated in 14621.32 171220.08

foreign currencies

7. Others

Other comprehensive income

attributable to minority interests net of

tax

VII. Total comprehensive income 3471341443.71 1805677530.15

Total comprehensive income

attributable to owners of the parent 3555720180.22 1864416652.77

company

Total comprehensive income

-84378736.51-58739122.62

attributable to minority interests

VIII. Earnings per share

(I) Basic earnings per share 1.90 1.00

(II) Diluted earnings per share 1.90 1.00

With respect to the business mergers involving entities under common control consummated in the current period the net profit of the

acquirees was RMB32481963.81 prior to the merger and RMB39292296.69 in the prior period.Legal representative: CAI Huaijun CFO: ZHANG Zhihong Chief Accountant: TAO Jinyu

4. Income statement of the parent company

In RMB

Item 2023 2022

I. Operating revenue 11056.00 18867.92

Less: Operating cost 0.00 0.00

Taxes and surcharges 423344.58 2099.24

Selling expenses

Administrative expenses 79347994.13 101887298.84

R&D expenses

Financial expenses -14858117.90 -12545424.65

Incl.: Interest expenses 328285.09 401132.83

Interest income 15190882.99 12954190.78

Add: Other income 15041.29 84643.52

Investment income (loss is

600000000.00300000000.00

indicated by “-”)

Incl.: Income from investments

in associates and joint ventures

Income from

derecognition of financial assets

measured at amortized cost (loss is

indicated by “-”)

Net exposure hedging income

(loss is indicated by “-”)

Gains from changes in fair value

(loss is indicated by “-”)

Impairment losses of credit (loss

-97.011001.18

is indicated by “-”)

Impairment losses of assets (loss

is indicated by “-”)

Gains from disposal of assets

(loss is indicated by “-”)

II. Operating profit (loss is indicated by 535112779.47 210760539.19

91Mango Excellent Media Co. Ltd. Annual Report 2023

“-”)

Add: Non-operating revenue 18001.00 75000.00

Less: Non-operating expenses

III. Total profit (total loss is indicated by

535130780.47210835539.19

“﹣”)

Less: Income tax expense

IV. Net profit (net loss is indicated by

535130780.47210835539.19

“-”)

(I) Net profit from continuing

535130780.47210835539.19

operations (net loss is indicated by “-”)

(II) Net profit from discontinued

operations (net loss is indicated by “-”)

V. Other comprehensive income net of

tax

(I) Other comprehensive income

that cannot be subsequently reclassified

to profit or loss

1. Changes from re-measurement

of defined benefit plans

2. Other comprehensive income

that cannot be reclassified to profit or

loss under the equity method

3. Changes in fair value of other

investments in equity instruments

4. Changes in fair value of

enterprises’ own credit risks

5. Others

(II) Other comprehensive income

that will be reclassified to profit or loss

1. Other comprehensive income

that will be reclassified to profit or loss

under the equity method

2. Changes in fair value of other

debt investments

3. Amounts of financial assets

reclassified into other comprehensive

income

4. Provision for credit impairment

of other debt investments

5. Reserve for cash flow hedges

6. Translation differences of

financial statements denominated in

foreign currencies

7. Others

VI. Total comprehensive income 535130780.47 210835539.19

VII. Earnings per share:

(I) Basic earnings per share

(II) Diluted earnings per share

5. Consolidated statements of cash flows

In RMB

Item 2023 2022

I. Cash flows from operating activities:

Cash receipts from the sale of goods

14115387393.7013095415217.09

and the rendering of services

Net increase in customer deposits and

deposits from banks and other financial

institutions

Net increase in loans from the central

bank

Net increase in taking from banks and

other financial institutions

92Mango Excellent Media Co. Ltd. Annual Report 2023

Cash receipts from premiums under

direct insurance contracts

Net cash receipts from reinsurance

business

Net cash receipts from policyholders’

deposits and investment contract

liabilities

Cash receipts from interest fees and

commissions

Net increase in taking from banks and

other financial institutions

Net increase in financial assets sold

under repurchase arrangements

Net cash received from securities

trading agency

Receipts of tax refunds 8609557.50 30895444.30

Other cash receipts relating to

394108040.56447974990.68

operating activities

Sub-total of cash inflows from operating

14518104991.7613574285652.07

activities

Cash payments for goods purchased

9748214137.919318836426.27

and services received

Net increase in loans and advances to

customers

Net increase in balance with the

central bank and due from banks and

other financial institutions

Cash payments for claims and

policyholders’ benefits under direct

insurance contracts

Net increase in placements with banks

and other financial institutions

Cash payments for interest fees and

commissions

Cash payments for insurance

policyholder dividends

Cash payments to and on behalf of

1493967167.821616052857.07

employees

Payment of various types of taxes 292315607.94 205306601.01

Other cash payments relating to

1899834821.381812286068.28

operating activities

Sub-total of cash outflows from

13434331735.0512952481952.63

operating activities

Net cash flows from operating activities 1083773256.71 621803699.44

II. Cash flows from investing activities:

Cash receipts from disposals and

recovery of investments

Cash receipts from investment income

Net cash receipts from disposals of

fixed assets intangible assets and other 225533.85 173531.48

long-term assets

Net cash receipts from disposals of

subsidiaries and other business entities

Other cash receipts relating to

7219275772.7314218668535.75

investing activities

Sub-total of cash inflows from investing

7219501306.58 14218842067.23 activities

Cash payments to acquire or construct

fixed assets intangible assets and other 150261073.92 189897809.91

long-term assets

Cash payments to acquire investments

Net increase in pledged loans

receivable

Net cash payments for acquisitions of

834795100.00

subsidiaries and other business entities

93Mango Excellent Media Co. Ltd. Annual Report 2023

Other cash payments relating to

5478000000.0013371990000.00

investing activities

Sub-total of cash outflows from investing

6463056173.9213561887809.91

activities

Net cash flows from investment activities 756445132.66 656954257.32

III. Cash flows from financing activities:

Cash receipts from investments by

315693346.30

others

Incl.: Cash received by subsidiaries

286000000.00

from minority shareholders’ investments

Cash receipts from borrowings 679622361.64 1607632088.23

Other cash receipts relating to

financing activities

Sub-total of cash inflows from financing

679622361.641923325434.53

activities

Cash repayments of borrowings 296562773.00 39051360.40

Cash payments for distribution of

dividends or profits or settlement of 555137003.35 255759728.90

interest expenses

Incl.: Dividends or profit paid by

subsidiaries to minority shareholders

Other cash payments relating to

146238041.1696719804.50

financing activities

Sub-total of cash outflows from

997937817.51391530893.80

operating activities

Net cash flows from financing activities -318315455.87 1531794540.73

IV. Effect of foreign exchange rate

94337.15458406.76

changes on cash and cash equivalents

V. Net increase in cash and cash

1521997270.652811010904.25

equivalents

Add: Opening balance of cash and

10345319073.787534308169.53

cash equivalents

VI. Closing balance of cash and cash

11867316344.4310345319073.78

equivalents

6. Statement of cash flows of the parent company

In RMB

Item 2023 2022

I. Cash flows from operating activities:

Cash receipts from the sale of goods

and the rendering of services

Receipts of tax refunds

Other cash receipts relating to

22753060.5017332962.40

operating activities

Sub-total of cash inflows from operating

22753060.5017332962.40

activities

Cash payments for goods purchased

and services received

Cash payments to and on behalf of

58220694.5852213840.99

employees

Payment of various types of taxes 5947.03 2099.24

Other cash payments relating to

38515544.9526017975.33

operating activities

Sub-total of cash outflows from

96742186.5678233915.56

operating activities

Net cash flows from operating activities -73989126.06 -60900953.16

II. Cash flows from investing activities:

Cash receipts from disposals and

recovery of investments

Cash receipts from investment income 900000000.00 250000000.00

Net cash receipts from disposals of

fixed assets intangible assets and other

94Mango Excellent Media Co. Ltd. Annual Report 2023

long-term assets

Net cash receipts from disposals of

subsidiaries and other business entities

Other cash receipts relating to

investing activities

Sub-total of cash inflows from investing

900000000.00250000000.00

activities

Cash payments to acquire or construct

fixed assets intangible assets and other 158535.05 497131.58

long-term assets

Cash payments to acquire investments 834795100.00

Net cash payments for acquisitions of

subsidiaries and other business entities

Other cash payments relating to

investing activities

Sub-total of cash outflows from investing

834953635.05497131.58

activities

Net cash flows from investment activities 65046364.95 249502868.42

III. Cash flows from financing activities:

Cash receipts from investments by

others

Cash receipts from borrowings

Other cash receipts relating to

financing activities

Sub-total of cash inflows from financing

activities

Cash repayments of borrowings

Cash payments for distribution of

dividends or profits or settlement of 243193705.95 243193705.95

interest expenses

Other cash payments relating to

2204250.302099286.00

financing activities

Sub-total of cash outflows from

245397956.25245292991.95

operating activities

Net cash flows from financing activities -245397956.25 -245292991.95

IV. Effect of foreign exchange rate

changes on cash and cash equivalents

V. Net increase in cash and cash

-254340717.36-56691076.69

equivalents

Add: Opening balance of cash and

536508258.51593199335.20

cash equivalents

VI. Closing balance of cash and cash

282167541.15536508258.51

equivalents

7. Consolidated statement of changes in owners’ equity

Amount in the current period

In RMB

2023

Equity attributable to owners of the parent company

Other equity

Other

Item instruments Less: General Minority

Share Capital compreh Special Surplus Undistribu Other Sub- Total owners’ equity

Prefer Perpet Treasury risk interests

capital reserve ensive reserve reserve ted profits s total

ence ual Others shares reserve

income

shares bonds

190146-

I. Closing balance of the 1870720 964621 157436. 126108 7371494

preceding year 91412.1 4440627 18970285136.86 815.00 0097.63 90 937.21 125.42

65.30

Add: Changes in

accounting policies

Corrections of prior period

errors

Others

II. Opening balance of the

current year 1870720 964621 157436. 126108 7371494 190146 - 18970285136.86

95Mango Excellent Media Co. Ltd. Annual Report 2023

815.000097.6390937.21125.4291412.14440627

65.30

III. Changes for the year - -

14621.35351303258998247773

(decrease is indicated by 834795 8437873 2393352637.76

“-”)278.05774.901374.27

100.006.51

-

(I) Total comprehensive 14621.3 3555705 355572

income 8437873 3471341443.71 2 558.90 0180.22

6.51

(II) Owners’ contributions

and reduction in capital

1． Ordinary shares

contributed by owners

2．Capital contribution

from holders of other

equity instruments

3. Share-based payment

recognized in owners’

equity

4. Others

--

535130

(III) Profit distribution 2967067 243193 -243193705.95

78.05

84.00705.95

-

1. Transfer to surplus 535130

reserve 5351307 78.05

8.05

2. Transfer to general risk

reserve

--

3. Distributions to owners

(shareholders) 2431937 243193 -243193705.95

05.95705.95

4. Others

(IV) Transfers within

owners’ equity

1. Capitalization of capital

reserve

2. Capitalization of surplus

reserve

3. Loss offset by surplus

reserve

4.Retained earnings carried

forward from changes in

defined benefit plans

5. Retained earnings

carried forward from other

comprehensive income

6.Others

(V) Special reserve

1. Transfer to special

reserve in the period

2. Amount utilized in the

period

--

(VI) Others 834795 834795 -834795100.00

100.00100.00

214924-

IV. Closing balance of the 1870720 881141 172058. 179622 1063049

current period 22786.4 1287850 21363637774.62 815.00 4997.63 22 015.26 2900.32

311.81

Amount in the prior period

In RMB

2022

Equity attributable to owners of the parent company

Other equity

Other

Item instruments Less: General Undistri Minority Total owners’

Share Capital compre Special Surplus Sub-

Prefer Perpet Treasur risk buted Others interests equity

capital reserve hensive reserve reserve total

ence ual Others y shares reserve profits

income

shares bonds

I. Closing balance of the 1870720 92443 - 105025 574628 16966 30763885. 16997164244.07

96Mango Excellent Media Co. Ltd. Annual Report 2023

preceding year 815.00 86503. 13783. 383.29 1439.57 400358 84

5518.23

--

Add: Changes in

accounting policies 247845. 247845 -20010.03 -267855.88

85.85

Corrections of prior

period errors

61645346036407681

Others 407681647.73

488.85158.88647.73

93060-17373

II. Opening balance of 1870720 105025 609206 30743875.the current year 31992. 13783. 834160 17404578035.92 815.00 383.29 9752.60 81

4018.11

III. Changes for the year 16408 -

34017817122021083127942

(decrease is indicated by 57252. 75150151. 1565707100.94

“-”)105.23.08553.924372.82

0511

18644-

(I) Total comprehensive 171220 186424

income 16652. 58739122. 1805677530.15 .08 5432.69

7762

(II) Owners’ -

340178340178

contributions and 16411028. 323767076.74

reduction in capital 105.23 105.23

49

1． Ordinary shares 37767 37767

37767076.74

contributed by owners 076.74 076.74

2．Capital contribution

from holders of other

equity instruments

3. Share-based payment

recognized in owners’

equity

-

302411302411

4. Others 16411028. 286000000.00

028.49028.49

49

--

21083

(III) Profit distribution 584821 563737 -563737505.95

553.92

059.87505.95

-

1. Transfer to surplus 21083

reserve 210835 553.92

53.92

2. Transfer to general

risk reserve

--

3. Distributions to

owners (shareholders) 563737 563737 -563737505.95

505.95505.95

4. Others

(IV) Transfers within

owners’ equity

1. Capitalization of

capital reserve

2. Capitalization of

surplus reserve

3. Loss offset by surplus

reserve

4. Retained earnings

carried forward from

changes in defined

benefit plans

5. Retained earnings

carried forward from

other comprehensive

income

6. Others

(V) Special reserve

1. Transfer to special

reserve in the period

97Mango Excellent Media Co. Ltd. Annual Report 2023

2. Amount utilized in the

period

(VI) Others

9646219014-

IV. Closing balance of 1870720 157436 126108 737149

the current period 10097. 691412 44406275. 18970285136.86 815.00 .90 937.21 4125.42

63.1630

8. Statement of changes in owners’ equity of the parent company

Amount in the current period

In RMB

2023

Other equity instruments Other

Less:

Item Capital comprehen Special Surplus Undistributed

Share capital Preferen Perpetua Treasury Others Total owners’ equity

Others reserve sive reserve reserve profits

ce shares l bonds shares

income

I. Closing balance of the 1870720815 1058478 1261089 246837709.4

preceding year 12828450269.23 .00 2807.56 37.21 6

Add: Changes in

accounting policies

Corrections of prior period

errors

Others

II. Opening balance of the 1870720815 1058478 1261089 246837709.4

current year 12828450269.23 .00 2807.56 37.21 6

III. Changes for the year -

5351307238423996.4

(decrease is indicated by 63811591 -346178840.51

“-”)8.057

5.03

(I) Total comprehensive 535130780.4

income 535130780.47 7

(II) Owners’ contributions

and reduction in capital

1． Ordinary shares

contributed by owners

2．Capital contribution

from holders of other

equity instruments

3. Share-based payment

recognized in owners’

equity

4. Others

-

5351307

(III) Profit distribution 296706784.0 -243193705.95

8.05

0

1. Transfer to surplus 5351307

reserve -53513078.05 8.05

-

2. Distributions to owners

(shareholders) 243193705.9 -243193705.95

5

3. Others

(IV) Transfers within

owners’ equity

1. Capitalization of capital

reserve

2. Capitalization of surplus

reserve

3. Loss offset by surplus

reserve

4. Retained earnings

carried forward from

changes in defined benefit

plans

5. Retained earnings

carried forward from other

comprehensive income

6. Others

98Mango Excellent Media Co. Ltd. Annual Report 2023

(V) Special reserve

1. Transfer to special

reserve in the period

2. Amount utilized in the

period

-

(VI) Others 63811591 -638115915.03

5.03

IV. Closing balance of the 1870720815 9946666 1796220 485261705.9

current period 12482271428.72 .00 892.53 15.26 3

Amount in the prior period

In RMB

2022

Other equity instruments Other

Item Less: Total Share Preferen Capital comprehe Special Surplus Undistrib

Perpetua Treasury Others owners’ capital ce Others reserve nsive reserve reserve uted profit

l bonds shares equity

shares income

I. Closing balance 105847

187072105025330027941286080

of the preceding 82807.5

year 0815.00 83.29 30.14 8435.99

6

Add: Changes in

accounting policies

Corrections of prior

period errors

Others

105847

II. Opening balance 187072 1050253 3002794 1286080

of the current year 82807.5 0815.00 83.29 30.14 8435.99

6

III. Changes for the - -

2108355

year (Decrease is 5344172 3235816

indicated by “-”) 3.92

0.686.76

(I) Total

21083552108355

comprehensive

income 39.19 39.19

(II) Owners’

contributions and

reduction in capital

1. Ordinary shares

contributed by

owners

2. Capital

contribution from

holders of other

equity instruments

3. Share-based

payment recognized

in owners’ equity

4. Others

--

(III) Profit 2108355

distribution 2642772 24319373.92

59.8705.95

-

1. Transfer to 2108355

surplus reserve 2108355 3.92

3.92

2. Distributions to - -

owners 2431937 2431937

(shareholders)

05.9505.95

3. Others

(IV) Transfers

within owners’

equity

1. Capitalization of

capital reserve

2. Capitalization of

surplus reserve

3. Loss offset by

surplus reserve

99Mango Excellent Media Co. Ltd. Annual Report 2023

4. Retained earnings

carried forward

from changes in

defined benefit

plans

5. Retained earnings

carried forward

from other

comprehensive

income

6. Others

(V) Special reserve

1. Transfer to

special reserve in

the period

2. Amount utilized

in the period

(VI) Others

105847

IV. Closing balance 187072 1261089 2468377 1282845

of the current period 82807.5 0815.00 37.21 09.46 0269.23

6

III. Basic Information of the Company

Mango Excellent Media Co. Ltd. (the “Company”) formerly known as Happigo Inc. was established on the basis of the overall

change of Happigo Co. Ltd. It completed the registration with the Administration for Industry and Commerce of Changsha City Hunan

Province on December 28 2005 with the headquarter located in Changsha City Hunan Province. In July 2018 the Company changed

its name from “Happigo Inc.” to “Mango Excellent Media Co. Ltd”. Currently the Company holds a business license with unified

social credit code numbered 91430100782875193K with registered capital amounting to RMB1870720815.00 and a total of

1870720815 shares (with the par value of RMB 1 per share) comprising restricted outstanding A-share of 849020900 shares and

unrestricted A-share of 1021700000 shares as of December 31 2023. The Company’s shares were listed for trading on the Shenzhen

Stock Exchange on January 21 2015.The Company is an entity engaged in the Internet new media industry. Its principal operating activities can be divided into three

parts namely new media platform operation new media interactive entertainment content production and media retail business.These financial statements were approved by the 20th meeting of the 4th Board of Directors of the Company on April 18 2024 for

issuance.IV. Basis of Preparation of Financial Statements

1. Basis of preparation

The Company’s financial statements are prepared on a going-concern basis.

2. Going-concerning

The Company has detected no events or circumstances that may cast significant doubt upon its ability to continue as a going

concern within 12 months from the Reporting Period.V. Significant Accounting Policies and Accounting Estimates

Reminders on specific accounting policies and accounting estimates:

Notice: The Company has formulated the specific accounting policies and made the specific accounting estimates with respect to

the impairment of financial instruments depreciation of fixed assets depreciation of right-of-use assets amortization of intangible

assets recognition of revenues and other transactions and events according to the actual production and operation characteristics of the

Company.

100Mango Excellent Media Co. Ltd. Annual Report 2023

1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company conform to the requirements of the Accounting Standards for Business

Enterprises and truly and completely reflect the Company’s financial position operating results cash flows and other related

information.

2. Accounting period

The Company’s accounting year is from January 1 to December 31 of each calendar year.

3. Operating cycle

The Company has a relatively short operating cycle and determines the liquidity of assets and liabilities on the basis of 12 months.

4. Functional currency

The Company and its domestic subsidiaries adopt RMB as its functional currency while Mgtv.com (Hong Kong) Media Company

Limited engages in overseas operations and accordingly selects the US dollar the currency used in the main economic environment in

which it operates as its functional currency.

5. Determination and basis for selection of materiality criteria

□Applicable □N/A

Item Materiality criteria

Material accounts receivable assessed Individual accounts receivable in excess of RMB10 million are recognized as material

for impairment loss individually accounts receivable.Material prepayments aged more than Individual prepayments in excess of RMB30 million and aged more than one year are

one year recognized as material prepayments.Material accounts payable aged more Individual accounts payable in excess of RMB30 million and aged more than one year

than one year are recognized as material accounts payable.Material other payables aged more than Individual other payables in excess of RMB3 million and aged more than one year are

one year recognized as material other payables.Material capitalised research and Any capitalised research and development project in excess of RMB30 million is

development projects recognized as a material capitalised research and development project

Material subsidiaries and non-wholly- Any subsidiary whose total assets/operating revenue accounts for more than 15% of the

owned subsidiaries Group’s total assets/operating revenue or whose total profit/net profit accounts for more

than 10% of the Group’s total profit/net profit is recognized as a material subsidiary or

non-wholly-owned subsidiary (as the case may be).Material commitments Individual commitments in excess of RMB100 million are recognized as material

commitments.Material contingencies Individual contingencies in excess of RMB10 million or of a special nature are recognized

as material contingencies.Material subsequent events Individual subsequent events in excess of RMB100 million are recognized as material

subsequent events.Any debt restructuring in excess of RMB10 million is recognized as a material debt

Material debt restructuring

restructuring

6. Accounting treatment of business mergers involving entities under common control and business mergers

not involving entities under common control

1. Accounting treatment of business merger involving entities under common control

Assets and liabilities that are obtained by the Company in a business merger shall be measured at their carrying values in the

consolidated financial statements of the ultimate controller at the merger date as recorded by the acquiree. The difference between the

carrying value of the owners’ equity of the acquiree as stated in the consolidated financial statements of the ultimate controller and the

carrying value of the total consideration paid or total par value of the shares issued in connection with the merger is treated as an

101Mango Excellent Media Co. Ltd. Annual Report 2023

adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference the remaining balance is adjusted

against the retained earnings.

2. Accounting treatment of business mergers not involving entities under common control

Where the cost of the merger exceeds the Company’s share of the fair value of the acquiree’s identifiable net assets the difference

is recognized as goodwill at the date of acquisition. Where the cost of merger is lower than the Company’s share of the fair value of

the acquiree’s identifiable net assets the Company reviews the measurement of the fair value of each of the identifiable assets liabilities

and provisions acquired from the acquiree and the cost of merger and if the cost of merger as reviewed is still lower than the Company’s

share of the fair value of the acquiree’s identifiable net assets the difference is recognized in profit or loss for the current period.

7. Determination of control and method of preparation of consolidated financial statements

1. Determination of control

Control refers to the investor has the power over the investee enjoys variable returns by participating in the relevant activities of

the investee and has the ability to use the power of the investee to influence the amount of returns.

2. Method of preparation of consolidated financial statements

The Company includes all of its controlled subsidiaries in its consolidated financial statements. The consolidated financial

statements are prepared by the parent company in accordance with the Accounting Standards for Business Enterprises No. 33 -

Consolidated Financial Statements on the basis of the respective financial statements of the parent company and its subsidiaries by

reference to other relevant data.

8. Classification of joint arrangements and accounting treatment of joint operations

1. Joint arrangements are classified into joint operations and joint ventures.

2. When the Company is a party to a joint operation the Company recognizes the following items relating to its interest in the

joint operation:

(1) the assets individually held by the Company and the Company’s share of the assets held jointly;

(2) the liabilities incurred individually by the Company and the Company’s share of the liabilities incurred jointly;

(3) the Company’s revenue from the sale of its share of output of the joint operation;

(4) the Company’s share of revenue from the sale of assets by the joint operation; and

(5) the expenses incurred individually by the Company and the Company’s share of the expenses incurred jointly.

9. Recognition of cash and cash equivalents

For the purpose of the statement of cash flows cash comprises cash on hand and demand deposits and cash equivalents comprise

short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant

risk of changes in value.

10. Foreign currency transactions and translation of foreign currency financial statements

1. Translation of foreign currency transactions

Upon initial recognition foreign currency transactions are translated into RMB using the exchange rates prevailing at the

transaction dates. At the balance sheet date monetary items denominated in foreign currencies are translated into RMB using the spot

exchange rates at the balance sheet date. Exchange differences arising from such translations are recognized in profit or loss for the

current period except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or

construction of qualifying assets and accrued interest. Non-monetary items denominated in foreign currencies that are measured at

historical cost are translated using the foreign exchange rates ruling at the transaction dates without adjusting the amounts in RMB.Non-monetary items denominated in foreign currencies that are measured at fair value are translated using the foreign exchange rates

prevailing at the dates the fair value was determined and exchange differences arising from such translations are recognized in profit

or loss for the current period or other comprehensive income.

2. Translation of foreign currency financial statements

The asset and liability items in the balance sheet are translated at the spot exchange rates at the balance sheet date. The owners’

equity items other than “Undistributed profits” are translated at the spot exchange rates at the transaction dates. The income and expense

items in the income statements are translated at the spot exchange rates at the transaction dates. Exchange differences arising from such

translations are recognized in other comprehensive income.

11. Financial instruments

1. Classification of financial assets and financial liabilities

Upon initial recognition financial assets are classified into: (1) financial assets at amortized cost; (2) financial assets at fair value

through other comprehensive income; and (3) financial assets at fair value through profit or loss.Upon initial recognition financial liabilities are classified into: (1) financial liabilities at fair value through profit or loss; (2)

102Mango Excellent Media Co. Ltd. Annual Report 2023

financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or continuing

involvement in the financial assets transferred; (3) financial guarantee contracts not falling under items (1) and (2) and loan

commitments not falling under item (1) and below market interest rate; and (4) financial liabilities at amortized cost.

2. Recognition measurement and derecognition of financial assets and financial liabilities

(1) Recognition and initial measurement of financial assets and financial liabilities

When the Company becomes a party to a financial instrument contract a financial asset or liability is recognized. Financial assets

and liabilities are initially measured at fair value. Transaction costs relating to financial assets or liabilities at fair value through profit

or loss are directly recognized in profit or loss for the current period. Transaction costs relating to other kinds of financial assets or

liabilities are included in their initially recognized amount. However where the accounts that do not contain any significant financing

component or are recognized by the Company without taking into consideration the significant financing components under the

contracts with a term of less than one year upon initial recognition are initially measured at transaction price defined in the Accounting

Standards for Business Enterprises No. 14 - Revenue.

(2) Subsequent measurement of financial assets

1) Financial assets at amortized cost

Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains or losses

on financial assets at amortized cost that do not belong to any hedging relationship are recognized in profit or loss for the current period

upon derecognition reclassification amortization using the effective interest method or recognition of impairment.

2) Investments in debt instruments at fair value through other comprehensive income

Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.Interest impairment losses or gains and exchange gains or losses calculated using the effective interest method are recognized in profit

or loss for the current period and other gains or losses are recognized in other comprehensive income. On derecognition the cumulative

gain or loss previously included in other comprehensive income is removed out from other comprehensive income and included in

profit or loss for the current period.

3) Investments in equity instruments at fair value through other comprehensive income

Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.Dividends received (other than those received as recovery of investment cost) are recognized in profit or loss for the current period

and other gains or losses are recognized in other comprehensive income. On derecognition the cumulative gain or loss previously

included in other comprehensive income is removed out from other comprehensive income and included in retained earnings.

4) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon including

interest and dividend income are recognized in profit or loss for the current period except the financial assets belonging to any hedging

relationship.

(3) Subsequent measurement of financial liabilities

1) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including derivatives classified

as financial liabilities) and financial liabilities directly designated as at fair value through profit or loss. Such financial liabilities are

subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at fair value through profit or loss

arising out of changes in the Company’s credit risk are recognized in other comprehensive income unless such treatment will result in

or increase any accounting mismatch in profit or loss. Other gains or losses on such financial liabilities including interest expenses

and changes in fair value not arising out of changes in the Company’s credit risk are recognized in profit or loss for the current period

except the financial liabilities belonging to any hedging relationship. On derecognition the cumulative gain or loss previously included

in other comprehensive income is removed out from other comprehensive income and included in retained earnings.

2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or continuing

involvement in the financial assets transferred

Such financial liabilities are measured in accordance with the Accounting Standards for Business Enterprises No. 23 - Transfer of

Financial Assets.

3) Financial guarantee contracts not falling under items 1) and 2) above and loan commitments not falling under item 1) above

and below market interest rate

Such financial liabilities are subsequently measured at the higher of * provision for impairment losses determined according to

the policy for impairment of financial instruments; and * balance of the initially recognized amount after deduction of the accumulated

amortization determined in accordance with Accounting Standards for Business Enterprises No. 14 - Revenue.

4) Financial liabilities at amortized cost

Such financial liabilities are measured at amortized cost using the effective interest method. Gains or losses on financial liabilities

at amortized cost that do not belong to any hedging relationship are recognized in profit or loss for the current period upon derecognition

or amortization using the effective interest method.

(4) Derecognition of financial assets and financial liabilities

1) Financial assets are derecognized when:

* the contractual right to receive cash flows from the financial assets has expired; or

* the financial assets have been transferred and such transfer meets the criteria for derecognition of financial assets as set forth

in the Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets.

2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligations thereon have been discharged.

3. Determination and measurement of financial assets transferred

When a financial asset of the Company is transferred if substantially all the risks and rewards incidental to the ownership of the

financial asset have been transferred the financial asset is derecognized and the rights and obligations incurred or retained in such

transfer are separately recognized as assets or liabilities (as the case may be). If the Company retains substantially all the risks and

rewards of ownership of a financial asset the Company shall not derecognize the financial asset. If the Company retains substantially

103Mango Excellent Media Co. Ltd. Annual Report 2023

all the risks and rewards of ownership of a financial asset the Company shall not derecognize the financial asset. If the Company

neither transferred nor retained a substantial portion of all risks and rewards incidental to the ownership of the financial asset then: (1)

if the Company does not retain control over the financial asset the financial asset is derecognized and the rights and obligations

incurred or retained in such transfer are separately recognized as assets or liabilities (as the case may be); and (2) if the Company

retains control over the financial asset the financial asset continues to be recognized to the extent of the Company’s continuing

involvement in the financial asset transferred and a corresponding liability is recognized.If an entire transfer of a financial asset meets the criteria for derecognition the difference between (1) the carrying value of the

financial asset transferred at the date of derecognition; and (2) the sum of the consideration received from the transfer and the portion

of the cumulative amount of changes in fair value directly recorded as other comprehensive income originally that corresponds to the

part derecognized (where the financial asset transferred is an investment in debt instruments at fair value through other comprehensive

income) is recognized in profit or loss for the current period. If part of a financial asset is transferred and the part transferred entirely

meets the criteria for derecognition the total carrying value of the financial asset immediately prior to the transfer is allocated between

the part derecognized and the part not derecognized in proportion to their relative fair value at the date of transfer and the difference

between (1) the carrying value of the part derecognized and (2) the sum of the consideration received from the transfer of the part

derecognized and the portion of the cumulative amount of changes in fair value directly recorded as other comprehensive income

originally that corresponds to the part derecognized (where the financial asset transferred is an investment in debt instruments at fair

value through other comprehensive income) is recognized in profit or loss for the current period.

4. Determination of fair value of financial assets and financial liabilities

The Company adopts the valuation techniques applicable to the current situations and with sufficient data available and support

of other information to determine the fair value of financial assets and financial liabilities. The Company classifies the inputs used by

the valuation techniques in the following levels and uses them in turn:

(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or liability available at the date of

measurement;

(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or indirectly. This category includes

quoted prices for similar assets or liabilities in active markets quoted prices for identical or similar assets or liabilities in inactive

markets observable inputs other than quoted prices (such as interest rate and yield curves observable during regular intervals of

quotation) and inputs validated by the market;

(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility that cannot be directly

observed or validated by observable market data future cash flows from retirement obligation incurred in business mergers and

financial forecasts made using own data.

5. Impairment of financial instruments

(1) Measurement and accounting treatment of impairment of financial instruments

The Company carries out impairment treatment and determines impairment losses of financial assets at amortized cost

investments in debt instruments at fair value with changes accrued to other comprehensive income contract assets lease receivables

loan commitments other than financial liabilities at fair value with changes accrued to current profit or loss and financial guarantee

contracts other than financial liabilities at fair value with changes accrued to current profit or loss and other than financial liabilities

arising as a result of the transfer of financial assets that does not meet the criteria for derecognition or that continues being involved in

the financial assets transferred on the basis of expected credit losses.Expected credit loss is the weighted average of credit losses on financial instruments taking into account the possibility of default.Credit loss is the present value of the difference between all contractual cash flows receivable under the contract and estimated future

cash flows discounted at the original effective interest rate i.e. the present value of all cash shortage wherein the Company’s purchased

or originated financial assets that have become credit impaired are discounted at their credit-adjusted effective interest rate.With respect to purchased or originated financial assets that have become credit impaired at the balance sheet date the Company

recognizes a loss allowance equal to the cumulative amount of changes in lifetime expected credit losses since initial recognition.With respect to accounts receivable and contract assets that arise from the transactions regulated under the Accounting Standard

for Business Enterprises No. 14 - Revenue and do not contain any significant financing component or are recognized by the Company

without taking into consideration the significant financing components under the contracts with a term of less than one year the

Company uses the simple measurement method and recognizes a loss allowance equal to the lifetime expected credit losses.With respect to financial assets not using the measurement methods stated above at each balance sheet date the Company assesses

whether the credit risk has increased significantly since initial recognition and recognizes a loss allowance equal to the lifetime

expected credit losses if the credit risk has increased significantly since initial recognition or to the expected credit losses within the

next 12 months if the credit risk has not increased significantly since initial recognition.The Company uses reasonable and supportable information including forward-looking information and compares the possibility

of default at the balance sheet date with the possibility of default upon initial recognition to determine whether the credit risk of the

financial instruments has increased significantly since initial recognition.At the balance sheet date if the Company determines that a financial instrument has low credit risk the Company assumes that

its credit risk has not increased significantly since initial recognition.The Company assesses expected credit risk and measures expected credit losses of financial instruments individually or

collectively. When assessing the financial instruments collectively the Company includes the financial instruments in different groups

according to their common risk characteristics.At each balance sheet date the Company re-assesses the expected credit losses with the amount of increase in or reversal of loss

allowance recognized in profit or loss for the current period as impairment losses or gains. With respect to a financial asset at amortized

cost its carrying value recorded in the balance sheet is written off against the loss allowance. With respect to an investment in debt

instruments at fair value through other comprehensive income the Company recognizes the loss allowance in other comprehensive

income without reducing its carrying value.

(2) Financial instruments with expected credit risk assessed on a group basis and expected credit loss measured under three-stage

model

104Mango Excellent Media Co. Ltd. Annual Report 2023

Item Basis for grouping Method for measuring expected credit losses

Other receivables - group of receivables from Calculate the expected credit losses according to

related parties controlled by the same actual the default risk exposure and rate of expected

controller Nature of receivables credit loss within the next 12 months or lifetime

Other receivables - group of deposit and security expected credit losses by reference to historic

receivable credit loss experience and taking into account

Other receivables - grouping by age the current situations and prediction of future Aging economic conditions.

(3) Accounts receivable and contract assets for which expected credit losses are measured collectively

1) Specific grouping and method for measuring expected credit losses

Item Basis for grouping Method for measuring expected credit losses

Notes receivable - banker’s acceptance

bills Calculate the expected credit losses according to the

Type of notes

Notes receivable - commercial default risk exposure and lifetime expected credit losses

acceptance bills receivable by reference to historic credit loss experience and taking

Accounts receivables - group of Group of receivables from into account the current situations and prediction of

receivables from related parties related parties controlled by the future economic conditions.controlled by the same actual controller same actual controller

Prepare a comparison table of the age of accounts

receivable and rate of lifetime expected credit loss and

calculate the expected credit losses by reference to

Accounts receivable - grouping by age Aging

historic credit loss experience and taking into account

the current situations and prediction of future economic

conditions.Calculate the expected losses according to the default risk

exposure and rate of lifetime expected loss by reference

Contract assets - group of operator

Operator business to historic loss experience and taking into account the

business

current situations and prediction of future economic

conditions.

2) Accounts receivable - comparison table of the age of accounts receivable and rate of lifetime expected credit loss

Aging Accounts receivable

Rate of expected credit loss (%)

Group I: Mango TV Internet Video Business (Happy Sunshine)

Within 1 year (inclusive same below) 5.00

1-2 years 10.00

2-3 years 30.00

3-4 years 50.00

4-5 years 100.00

Over 5 years 100.00

Group II: New media interactive entertainment production and operation content

e-commerce and others (companies other than Happy Sunshine)

Within 1 year (inclusive same below) 1.00

1-2 years 5.00

2-3 years 10.00

3-4 years 30.00

4-5 years 50.00

Over 5 years 100.00

Accounts receivable shall be aged from the month in which they are actually incurred.

(4) The criteria for the identification of receivables and contract assets for the accrual of expected credit losses on an individual

basis

For receivables and contract assets whose credit risk is significantly different from its portfolio credit risk the expected credit

losses shall be accrued on an individual basis.

6. Offsetting of financial assets and financial liabilities

Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However a financial asset

and a financial liability shall be offset and the net amount presented in the balance sheet when both of the following conditions are

satisfied: (1) the Company has a legal right to set off the recognized amounts and the legal right is currently enforceable; and (2) the

Company intends either to settle on a net basis or to realize the financial asset and settle the financial liability simultaneously.In accounting for a transfer of a financial asset that does not qualify for derecognition the Company does not offset the transferred

financial asset and the associated liability.

105Mango Excellent Media Co. Ltd. Annual Report 2023

12. Contract assets

Contract assets or contract liabilities are presented in the balance sheet according to the relationship between the relevant

performance obligations and payment by the customer. Contract assets and contract liabilities under the same contract are presented on

a net basis.The right of the Company to payment that is unconditional except for the passage of time is presented as an account receivable.The right of the Company to payment for goods already transferred to a customer is presented as a contract asset if that right to payment

is conditional on something other than the passage of time.

13. Inventories

The Company shall comply with the disclosure requirements for “Internet Video Business” set forth in the Guide on Self-

regulatory Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 – Disclosure of Industry Information by the

Companies Listed on the ChiNext Board.

1. Classification of inventories

Inventories include finished goods or merchandise held by the Company for sale in the ordinary course of business or work in

progress in the process of production for such sale or materials or supplies to be consumed in the production process or in the rendering

of services.

2. Pricing methods of inventories transferred out

When transferring out inventories the Company determines the actual cost of automobile film and TV drama and consignment

goods using the specific-identification method and of the remaining goods using the weighted moving average method.

3. Inventory systems for inventories

A perpetual inventory system is adopted among which the Company uses verification of copyright and other right documents as

the inventory system for films and TV dramas.

4. Amortization of low-value consumables and packing materials

(1) Low-value consumables

The packing materials are amortized using immediate write-off method.

(2) Packing materials

The packing materials are amortized using immediate write-off method.

5. Determination criteria and accrual method of inventory depreciation reserve

On the balance sheet date inventory is measured at the lower of the cost or the net realizable value and the inventory depreciation

reserve is accrued for the difference between the cost and the net realizable value. In the normal production and operation process the

net realizable value of inventory directly used for sale is determined by the estimated selling prices of inventory less the estimated

selling expenses and related taxes; in the normal production and operation process the net realizable value of inventory to be processed

is determined by the estimated selling prices of finished products less the estimated costs to be incurred upon completion the estimated

selling expenses and related taxes; on the balance sheet date if part of the same inventory has contract price agreements while the

other part does not have any their net realizable values shall be determined respectively which shall be compared with the

corresponding costs to determine the amount of the inventory depreciation reserve to be accrued or reserved respectively.

14. Long-term equity investments

1. Judgment criteria of joint control and significant influence

Joint control is the agreed sharing of control over an arrangement and the decision in relation to the relevant activities of such

arrangement may only be made upon the unanimous consent of the parties sharing control. Significant influence is the power of the

investing enterprise to participate in the financial and operating policy decisions of an investee but is not control or joint control with

other parties over the establishment of those policies.

2. Determination of investment cost

(1) In case of an equity investment acquired through a business merger involving entities under common control if the acquirer

pays consideration for the business merger by cash transfer of non-cash assets assumption of liabilities or issuance of equity securities

the initial investment cost of the long-term equity investment is the Company’s share of the carrying value of the owners’ equity of the

acquiree in the consolidated financial statements of the ultimate controller at the date of merger. The difference between the initial

investment cost of the long-term equity investment and the carrying value of the consideration paid for the merger or the total par value

of the shares issued (as applicable) is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb

the difference the remaining balance is adjusted against the retained earnings.In case of a long-term equity investment acquired through a business merger involving entities under common control and through

multiple transactions by steps the Company judges whether they constitute a “package deal” or not. If they belong to a “package deal”

the Company accounts for all transactions as one transaction to acquire control. If such transactions do not constitute a “package deal”

the initial investment cost is the Company’s post-merger share of the carrying value of the net assets of the acquiree in the consolidated

financial statements of the ultimate controller at the date of merger. The difference between the initial investment cost of the long-term

equity investment at the date of merger and the sum of the carrying value of long-term equity investment before the merger and the

carrying value of the consideration paid for acquisition of the additional shares at the date of merger is adjusted against the capital

reserve. In case the capital reserve is not sufficient to absorb the difference the remaining balance is adjusted against the retained

earnings.

(2) In case of an equity investment acquired through a business merger not involving entities under common control the initial

106Mango Excellent Media Co. Ltd. Annual Report 2023

investment cost is the fair value of the consideration paid for the merger at the date of acquisition.With respect to a long-term equity investment acquired through a business merger not involving entities under common control

that is achieved through multiple transactions by steps the accounting treatment thereof in the separate financial statements is different

from that in the consolidated financial statements as stated below:

1) In the separate financial statements the initial investment cost for which the Company changes to the cost method is the sum

of the carrying value of the long-term equity investment originally held and the new investment cost.

2) In the consolidated financial statements the Company judges whether the transactions constitute a “package deal” or not. If

they belong to a “package deal” the Company accounts for all transactions as one transaction to acquire control. If such transactions

do not constitute a “package deal” the Company re-measures the fair value of the equity held in the acquiree prior to the date of

acquisition and records the difference between the fair value and the carrying value as investment income for the current period; if the

equity held in the acquiree prior to the date of acquisition involves other comprehensive income under equity method such other

comprehensive income is transferred to the income of the period in which the date of acquisition falls except for other comprehensive

income arising from re-measurement by the investee of changes in net liabilities or net assets of defined benefit plans.

(3) In case of an equity investment not acquired through business merger the initial investment cost is the purchase price actually

paid if it is acquired by cash or the fair value of the equity securities issued if it is acquired through issuance of equity securities or is

determined in accordance with the Accounting Standards for Business Enterprises No. 12 - Debt Restructuring if it is acquired through

debt restructuring or in accordance with the Accounting Standards for Business Enterprises No. 7 - Exchange of Non-monetary Assets

if it is acquired through exchange of non-monetary assets.

3. Subsequent measurement and recognition of profit or loss

Long-term equity investments in investees are measured using the cost method. Long-term equity investments in associates and

joint ventures are measured using the equity method.

4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of control over the subsidiary

(1) Determination of whether a transaction is a “package deal”

Where equity investment is made in the subsidiary step by step through multiple transactions until the control is lost the Company

determines whether the step-by-step transaction is a “package deal” by considering the transaction agreement terms the respective

disposal consideration acquired the object of the equity sale the disposal means the disposal time and other information of each step

of the step-by-step transaction. If the terms conditions and economic impact of each transaction meet one or more than one of the

following conditions it generally indicates that the multiple transactions are the “package deal”:

1) The transactions are concluded at the same time or with regard to their mutual effects;

2) These transactions can achieve a complete business outcome only when being considered as a whole;

3) The occurrence of one transaction depends on the occurrence of at least one other transaction;

4) A transaction is uneconomic in isolation but economic when considered together with other transactions.

(2) Accounting treatment that is not a “package deal”

1) Separate financial statements

The difference between the carrying value of the equity disposed of and the proceeds of disposal actually received is recognized

in profit or loss for the current period. If the remaining equity empowers the Company to exercise significant influence or joint control

over the investees the remaining equity is accounted for using the equity method; if the remaining equity does not empower the

Company to exercise control joint control or significant influence over the investees the remaining equity is accounted for in

accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.

2) Consolidated financial statements

Prior to the loss of control the difference between the proceeds from disposal and the share owned by the Company in the net

assets of the subsidiary in relation to the long-term equity investment disposed of that is calculated continuously from the date of

acquisition or merger is adjusted against the capital reserve (capital premium). In case the capital premium is not sufficient to absorb

the difference the remaining balance is adjusted against the retained earnings.When losing control over an original subsidiary the remaining equity is re-measured at its fair value at the date of loss of control.The sum of the consideration received from the disposal of the equity and the fair value of the remaining equity net of the share owned

by the Company in the net assets of the subsidiary as calculated continuously from the date of acquisition or merger according to the

previous shareholding ratio is recognized in the investment income for the period in which the control is lost and the goodwill is

reduced accordingly. Other comprehensive income relating to the equity investment in the original subsidiary should be transferred to

the investment income for the period in which the control is lost.

(3) Accounting treatment for “package deals”

1) Separate financial statements

The Company accounts for such transactions as one transaction to dispose of and lose its control over the subsidiary however

the difference between the proceeds from each disposal before loss of control and the carrying value of long-term equity investments

in relation to the investment disposed of is recognized in other comprehensive income in individual financial statements which is

wholly transferred to the profit or loss in the period in which the control is lost.

2) Consolidated financial statements

The Company accounts for such transactions as one transaction to dispose of and lose its control over the subsidiary however

the difference between the proceeds from each disposal before loss of control and the share owned by the Company in the net assets of

the subsidiary in relation to the investment disposed of is recognized in other comprehensive income in the consolidated financial

statements which is wholly transferred to the profit or loss in the period in which the control is lost.

15. Investment properties

Measurement model of investment properties

Cost method measurement

107Mango Excellent Media Co. Ltd. Annual Report 2023

Depreciation or amortization method

1. Investment properties include land use rights already leased land use rights held and ready to be transferred upon appreciation

and leased buildings.

2. An investment property is measured initially at cost and subsequently using the cost model. The cost of the investment property

net of estimated net residual value and cumulative provision for impairment loss is depreciated or amortized using the straight-line

method over its remaining useful life.

16. Fixed assets

(1) Criteria for recognition

Fixed assets are tangible assets held for production of goods rendering of services lease or operation and management with a

useful life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very likely to flow

to the Company and its cost can be reliably measured.

(2) Depreciation

Estimated useful life

Category Method of depreciation Residual value rate Annual depreciation rate

(years)

Buildings Straight line method 30 4 3.2

Machines and equipment Straight line method 3-8 0-5 11.88-33.33

Transportation

Straight line method 5-8 0-5 11.88-20

equipment

Electronic equipment

Straight line method 3-10 0-5 9.50-33.33

devices and furniture

With respect to artworks whose estimated useful life is uncertain the Company does not assess their depreciation but performs an

impairment test on them every year.

17. Borrowing costs

1. Recognition of capitalization of borrowing costs

Borrowing costs incurred by the Company that are directly attributable to the acquisition construction or production of a

qualifying asset are capitalized as part of the cost of the relevant asset. The amounts of other borrowing costs incurred are expensed

when incurred and included in profit or loss for the current period.

2. Period of capitalization of borrowing costs

(1) A borrowing cost is capitalized when all of the following conditions are satisfied: 1) the expenditures on the asset have already

been incurred; 2) the borrowing cost has already been incurred; and 3) the acquisition construction or production activities necessary

to prepare the asset for its intended use or sale have already commenced.

(2) Capitalization of borrowing costs is suspended during periods in which the acquisition construction or production of a

qualifying asset is interrupted abnormally when the interruption is for a continuous period of more than 3 months. The borrowing costs

incurred during these periods are recognized as an expense for the current period until the acquisition construction or production

activity is resumed.

(3) When the qualifying asset being acquired constructed or produced has become ready for its intended use or sale the

capitalization ceases.

3. Rate and amount of capitalization of borrowing costs

If funds are borrowed under a specific-purpose borrowing for the acquisition construction or production of a qualifying asset the

amount of interest to be capitalized shall be the actual interest expense incurred on that borrowing for the period (including amortized

discount or premium determined using the effective interest method) less any bank interest earned from depositing the borrowed funds

before being used on the asset or any investment income on the temporary investment of those funds. If funds are borrowed under

general-purpose borrowings and are utilized for the acquisition construction or production of a qualifying asset the Company shall

determine the amount of interest to be capitalized on such borrowings by multiplying a capitalization rate of the utilized general-

purpose borrowings by the weighted average of the excess amounts of cumulative expenditures on the asset over and above the amounts

of specific-purpose borrowings.

18. Intangible assets

(1) Useful life basis for determination of useful life estimates amortization or review process

The Company shall comply with the disclosure requirements for “Internet Video Business” set forth in the Guide on Self-regulatory

Supervision for Companies Listed on the Shenzhen Stock Exchange No. 4 - Disclosure of Industry Information by the Companies

108Mango Excellent Media Co. Ltd. Annual Report 2023

Listed on the ChiNext Board.

1. Intangible assets include film and TV copyrights land use rights software trademarks and domains game copyrights etc.

which are initially measured at cost.

2. Service life and amortization method

(1) Amortization and carryforward of film and TV copyrights

When a film and TV copyright is recognized as an intangible asset that copyright is amortized in the light of the following

principles during the copyright benefit period: in case of the permanent copyright with the benefit period being determined to be 5

years and the films and TV dramas copyright with the benefit period being determined to be not less than 3 years (inclusive) they are

amortized on a 5:3:2 basis (that is 50% of the intangible asset value is amortized evenly in the first 12 months 30% in the second 12

months and the remaining 20% is amortized on a straight-line basis during the remaining benefit period); in case of the copyrights with

the benefit period of more than 2 years (inclusive) but less than 3 years they are amortized on a 5:5 basis (that is 50% is amortized in

the first 12 months and the remaining 50% is amortized in a straight line during the remaining benefit period); and in case of the

copyrights with the benefit period of less than 2 years they are amortized on a monthly straight-line basis during the benefit period.When the film and TV copyright is used for distribution the right to use and income right etc. shared jointly or enjoyed

respectively by the Company and its counterparty after distribution should be transferred as the book cost of the intangible assets at the

lower of the income amount and the amortized carrying value of intangible assets from the date on which they satisfy the recognition

criteria of revenue. If the amortized value after transfer is still greater than zero they continue to be amortized using the original

amortization method during the remaining amortization period.

(2) Amortization of other intangible assets other than film and TV copyright.

The depreciable amount of an intangible asset with a finite useful life is allocated on a systematic and rational basis over its useful

life in the pattern in which the asset’s economic benefits are expected to be realized. If that pattern cannot be determined reliably the

straight line method shall be used. The specific life is shown as follows:

Basis for determination of

Item Useful life (years) Method of amortization

useful life

Land use rights Term of the relevant land use

Title certificate Straight line method

right certificate

Software 3-10 Expected benefit period Straight line method

Trademarks and domain

Term of license Term of license Straight line method

names

Patent license fee 10 Expected benefit period Straight line method

Program adaptation right 3 Expected benefit period Straight line method

Game copyright Agreed term of license Agreed term of license Straight line method

(2) Scope and accounting treatment of research and development expenditures

(1) Labor costs

Labor costs include wages and salaries for the Company’s R&D personnel basic pension insurance basic medical insurance

unemployment insurance work-related injury insurance maternity insurance housing provident funds employee benefits etc.If R&D personnel serve multiple R&D projects concurrently their costs are allocated proportionally based on their recorded work

hours across different projects.

(2) Direct investment costs

Direct investment costs mean actual expenditures incurred by the Company for implementing R&D activities such as technical

service fees for the operation maintenance inspection testing and repair of equipment used in R&D activities.

(3) Depreciation expenses and long-term deferred expenses

Depreciation expense mean costs for the depreciation of equipment and buildings in R&D activities.For equipment and buildings used both for R&D and non-R&D activities necessary records shall be made on the use of such

equipment and buildings and the actually incurred depreciation costs shall be allocated between R&D expenses and production and

operating expenses in a reasonable manner according to the actual working hours use area etc.Long-term deferred expenses include costs incurred during the alteration modification renovation and repair of R&D facilities.When the facilities are used for non-R&D activities at the same time the expenses shall be allocated between R&D expenses and

production and operating expenses in a reasonable manner according to the actual working hours and usage area.

(4) Amortization expenses for intangible assets

Amortization expenses for intangible assets mean the amortization expenses for software and intellectual properties used in R&D

activities.

(5) Commissioned external R&D expenses

The commissioned external R&D expenses mean expenses incurred by the Company in delegating other organizations or

individuals both at home and abroad to conduct R&D activities (the results of the R&D activities are owned by the Company and are

closely related to the Company’s main business).

(6) Other expenses

Other expenses mean expenses directly related to R&D activities other than the above expenses including document translation

fees expert consulting fees fees for the retrieval demonstration review appraisal examination and acceptance of R&D results

intellectual property application fees registration fees conference expenses travel expenses communication fees etc.The Company engages in the research and development of system software. Expenditures on research and development projects

are classified into expenditures at research phase and expenditures at development phase according to the nature of expenditures and

109Mango Excellent Media Co. Ltd. Annual Report 2023

depending on whether it is significantly uncertain that the research and development activities will result in intangible assets.Expenditures at research phase are expenditures at the phase of planned investigation evaluation and selection for purpose of software

research which are recognized in profit or loss for the period in which they are incurred. Expenditures at the phase of design and testing

for purpose of final application of the software are recorded as expenditures at development phase which are capitalized prior to the

final application of the software when all of the following conditions are satisfied: (1) the development of the software has been

sufficiently validated by the technical team; (2) the management has approved the budget for the development of the software; (3) the

system functions and performance of the software to be developed can satisfy the requirements of economic activities; (4) the technical

and financial resources available are sufficient to meet the requirements of the development activities and subsequent use of the

software; and (5) the expenditures attributable to the development of the software can be reliably measured.

19. Impairment of long-term assets

With respect to long-term equity investments fixed assets construction in progress intangible assets with a finite useful life

right-of-use assets and other long-term assets if there’s an indication of impairment at the balance sheet date the Company assesses

their recoverable amount. Goodwill arising from a business merger and an intangible asset with an indefinite useful life are tested for

impairment annually irrespective of whether there is any indication that the asset may be impaired. For the purpose of impairment

testing goodwill is considered together with the related asset groups or sets of asset groups.If the recoverable amount of the long-term asset above is lower than its carrying value the difference is measured as impairment

loss of the asset and recognized in profit or loss for the current period.

20. Long-term prepaid expenses

Long-term prepaid expenses are expenses that have already been incurred but should be amortized over a period of more than one

year (exclusive). Long-term prepaid expenses are stated as incurred and are amortized evenly by stages within the benefit period or

specified period. If an item of long-term prepaid expenses will not benefit the subsequent periods the amortized value of the item that

has not yet been amortized is wholly transferred to profit or loss for the current period.

21. Contract liabilities

The Company presents the contract assets or liabilities in the balance sheet based on the relationship between performance

obligations and customer payments. The Company lists the net contract assets and liabilities under the same contract after offset.The Company presents its obligation to transfer goods to customers for the consideration received or receivable from customers

as the contract liabilities.

22. Employee benefits

(1) Accounting treatment of short-term employee benefits

The Company recognizes the short-term benefits actually incurred during the accounting period when the employees provide

services for the Company as liabilities and include the same in profit or loss for the current period or as part of the cost of related

assets.

(2) Accounting treatment of post-employment benefits

Post-employment benefits are classified into defined contribution plans and defined benefit plans.

(1) The Company recognizes the contributions payable as calculated based on the defined contribution plan during the accounting

period when the employees provide services for the Company as liabilities and include the same in profit or loss for the current period

or as part of the cost of related assets.

(2) The accounting treatment of a defined benefit plan generally involves the following steps:

1) According to the projected unit credit method use the unbiased and consistent actuarial assumptions to estimate demographic

variables and financial variables measure the obligation arising from the defined benefit plan and determine the period to which the

relevant obligation belongs. Meanwhile discount the obligation arising from the defined benefit plan in order to determine the present

value of the benefit plan obligation and the current service cost;

2) If the defined benefit plan has assets the deficit or surplus resulting after reducing the present value of the defined benefit plan

obligation by the fair value of the assets is recognized as a net liability or asset of the defined benefit plan. If the defined benefit plan

has a surplus the net assets of the defined benefit plan are measured at the lower of surplus in the defined benefit plan and asset ceiling;

3) At the end of the Reporting Period the cost of employee benefits arising from the defined benefit plan is recorded as service

cost net interest on the net liabilities or net assets of the defined benefit plan and changes arising from re-measurement of the net

liabilities or net assets of the defined benefit plan wherein the service cost and the net interest on the net liabilities or net assets of the

defined benefit plan are included in profit or loss for the current period or the cost of related assets and the changes arising from re-

110Mango Excellent Media Co. Ltd. Annual Report 2023

measurement of the net liabilities or net assets of the defined benefit plan are included in other comprehensive income which will not

be converted back to profit or loss in subsequent periods but those recognized as other comprehensive income may be transferred

within the scope of equity.

(3) Accounting treatment of termination benefits

The Company recognizes the employment compensation liabilities generated by termination benefits and records them into the

profit or loss for the current period at the earlier of the following dates: (1) when the Company cannot unilaterally withdraw the

termination benefits provided as a result of the labor relationship termination plan or layoff proposal; or (2) when the Company

recognizes the costs or expenses related to the restructuring of the termination benefits payment.

(4) Accounting treatment of other long-term employee benefits

Other long-term employee benefits are accounted for in accordance with the provisions applicable to defined contribution plans

if they are qualified as defined contribution plans otherwise are accounted for in accordance with the provisions applicable to defined

benefit plans. In order to simplify the accounting treatment the total net amount of the cost of employee benefits arising from the

defined benefit plans that is recorded as service cost net interest on the net liabilities or net assets of the defined benefit plan changes

arising from re-measurement of the net liabilities or net assets of the defined benefit plan and other components is included in profit or

loss for the current period or the cost of related assets.

23. Provisions

1. An obligation arising from any external guarantee litigation product quality warranty onerous contract or other contingencies

is recognized as a provision if it is a present obligation assumed by the Company and it is probable that an outflow of resources

embodying economic benefits will be required to settle the obligation and the amount of the obligation can be reliably measured.

2. Provisions are initially measured according to the best estimates of the expenditures required to settle the related present

obligations. The carrying value of provisions is reviewed at the balance sheet date.

24. Revenue

Accounting policies adopted for the recognition and measurement of revenues disclosed by type of business

Accounting policies adopted for the recognition and measurement of revenues

1. Revenue recognition

At the inception of the contract the Company evaluates the contract identifies each single performance obligation contained

therein and determine whether each single performance obligation is performed over time or at a point in time.When meeting one of the following criteria it belongs to the obligation performed over time otherwise it constitutes the obligation

performed at a point in time: (1) the customer obtains and consumes the economic benefits generated by the Company’s performance

when the Company performs the contract; (2) the customer can control the products under construction in the process of the Company’s

performance; (3) the products produced in the process of the Company’s performance have irreplaceable uses and the Company has

the right to collect payment for the cumulative performance that has been completed up to date throughout the term of the contract.For the obligation performed over time the Company recognizes the revenue based on the performance progress over time. When

the performance progress cannot be reasonably determined and the costs incurred are expected to be recoverable revenue is recognized

to the extent of costs incurred until the performance progress can be reasonably determined. For the obligation performed at a point in

time the revenue is recognized at the time point when the customer obtains the control of the related goods or services. When judging

whether the customer has obtained the control of goods the Company considers the followings signs: (1) the Company has the current

right to receive payment for such goods that is the customer has the current obligation to make payment for such goods; (2) the

Company has transferred the legal ownership of such goods to the customer that is the customer has the legal ownership of such goods;

(3) the Company has transferred such goods to the customer physically that is the customer has taken possession of such goods

physically; (4) the Company has transferred major risks and rewards of such goods to the customer that is the customer has obtained

major risks and rewards of such goods; (5) the customer has accepted such goods; and (6) other signs that the customer has obtained

control of such goods.

2. Revenue measurement

(1) The Company measures revenue based on the transaction price allocated to each single performance obligation. The transaction

price is the amount of consideration to which the Company is entitled arising from the transfer of goods or services to the customer

excluding the amount collected on behalf of a third party and expected to be returned to the customer.

(2) If there is variable consideration in the contract the Company determines the best estimate of the variable consideration based

on the expected value or the most likely amount. However variable consideration is included in the transaction price if and to the

extent that it is highly probable that its inclusion will not result in a significant revenue reversal of accumulatively recognized revenue

in the future when the uncertainty has been subsequently resolved.

(3) If there is a major financing component in the contract the Company determines the transaction price based on the presumed

amount payable in cash when the customer obtains the control of goods or services. The difference between that transaction price and

111Mango Excellent Media Co. Ltd. Annual Report 2023

the contract consideration is amortized over the period of the contract using the effective interest method. If at the inception of the

contract the Company expects that the customer’s acquisition of control of goods or services is not more than one year from the

customer’s payment therefor the major financing component in the contract will not be considered.

(4) If the contract has two or multiple performance obligations the Company allocates the transaction price to each single

performance obligation in the contract by reference to relative standalone selling prices of goods promised thereby.

3. Specific methods for revenue recognition

(1) Revenue recognized at a point in time

The Company’s sales of TV shopping products films and TV dramas and other goods belong to the obligation performed at a

point in time. The revenue is recognized when goods made for domestic market meet the following criteria: the Company has delivered

the products to the customer pursuant to the contract and the customer has accepted such products the payment for products has been

received or the receipt of payment has been obtained and it is probable that the associated economic benefits will flow to the Company

the legal ownership of the products has been transferred and the major risks and rewards of the products have been transferred to the

customer. The revenue is recognized when goods made for foreign market meet the following criteria: the Company has declared the

products pursuant to the contract and obtained the bill of lading the payment for products has been received or the receipt of payment

has been obtained and it is probable that the associated economic benefits will flow to the Company the legal ownership of the products

has been transferred and the major risks and rewards of the products have been transferred.

(2) Revenue recognized according to the progress of contract performance

The Company provides membership artiste operator and financial services etc. As the customer obtains and consumes the

economic benefits generated by the Company’s performance when the Company performs the contract the customer can control the

goods or services under construction in the process of the Company’s performance the services or goods provided in the process of

the Company’s performance have irreplaceable uses and the Company has the right to collect payment for the cumulative performance

that has been completed up to date throughout the term of the contract the Company regards it as a performance obligation over time

and recognizes revenue according to the performance progress unless the performance progress cannot be reasonably determined. The

Company determines the progress of performance obligation using the output method. When the performance progress cannot be

reasonably determined and the costs incurred by the Company are expected to be recoverable revenue is recognized to the extent of

costs incurred until the performance progress can be reasonably determined.

(3) The Company’s specific principles for the recognition and measurement of revenues earned in the sectors and lines of business

1) Revenue from sale of goods through TV channels network channels outbound channels online to offline channels and other

channels

The goods sold by the Company are mainly delivered by logistics companies to the buyers or picked by the buyers themselves.The Company recognizes the revenue from sale of goods when the goods have been delivered by logistics companies to the buyers and

signed for by the buyers and the period for return of goods has expired.If the customer is a group sales revenue is recognized when the group has received the goods and signed the receipt of the goods.If credits are offered to the customers upon sale of goods the Company allocates the amount received or receivable from the sale

of goods between the revenue from the sale of goods and the value of the credits and recognizes the amount received or receivable

from the sale of goods net of the value of the credits as revenue and the value of the credits as contract liabilities.When the credits are exchanged by the customers the portion of contract liabilities originally recognized in connection with the

credits exchanged is recognized as revenue wherein the amount of revenue recognized is determined according to the proportion of

the amount of the credits exchanged to the total estimated amount of the credits exchangeable.

2) Advertising revenue

Advertising revenue is recognized after the advertisements have been delivered or according to the settlement amount during the

process of service when all of the following conditions are satisfied: (i) the amount of revenue can be measured reliably; (ii) it is

probable that the economic benefits associated therewith will flow to the Company; and (iii) the costs incurred or to be incurred for the

delivery of advertisements can be measured reliably.

3) Membership revenue

Service revenue is recognized during the valid period of membership on a daily basis according to the top-up amount paid by the

members.

4) Royalty revenue

Royalty revenue includes copyright licensing revenue and revenue from joint copyright investment.* Copyright licensing revenue is recognized when the license has been granted to the counter party and the license fee has been

received or the right to receive the license fee has been obtained under the relevant copyright license contract.* Revenue from joint copyright investment

A. Investment in films and TV dramas and other programs in which the Company does not hold copyright

Applicable business: The Company participates in the production of films and TV dramas in the capacity of a co-investor under

the relevant investment agreement which explicitly provides that the return on investment receivable by the Company shall be a fixed

income or a risk investment income wherein the Company does not hold copyright as other investors. Income from such business is

recognized as investment income.B. Investment in films and TV dramas and other programs in which the Company holds joint copyright

Applicable business: The Company participates in the production of films and TV dramas in the capacity of a co-investor under

the relevant investment agreement which explicitly provides that the Company shall participate in the income distribution or loss

sharing of the project in the capacity of a co-investor and holds copyright therein jointly with other investors in such proportion as

agreed. Revenue from release of television series is recognized when the production of the television series has been completed the

films and TV dramas authority has examined the television series and issued a Television Series Release License the copies tapes and

other media of the television series have been delivered to the buyers and it is probable that the economic benefits associated therewith

will flow to the Company. Revenue from release of films is recognized when the production of the films has been completed the films

and TV dramas authority has examined the films and issued a Film Release License the film has been screened in theaters and the

settlement statement has been received from the relevant theater chains. Revenue from release of programs is recognized when the

112Mango Excellent Media Co. Ltd. Annual Report 2023

production of the programs has been completed the copies tapes and other media of the program have been delivered to the buyers

and it is probable that the economic benefits associated therewith will flow to the Company.Such revenue is recognized in two different ways:

If the Company is responsible for release when the criteria for recognition of revenue is met the Company recognizes the

distribution income as agreed as operating revenue and records the share of income payable to the production partners as deductions

from revenue. If another party is responsible for release when the Company receives the income settlement statement as agreed the

Company recognizes the income receivable as “operating revenue”.* Specific methods for cost recognition

If the Company is responsible for the production of and accounting for film or television series the cost actually incurred is

recorded as “inventories - production cost”. When the production fee advanced by the investors under the contract is received such

amount is initially recorded as “contract liabilities” and when the production has been completed and the film or television series is

ready for release such amount is offset against the inventory cost of film or television series. If another party is responsible for the

production of and accounting for the film or television series the production fee paid by the Company to the production partner under

the contract is initially recorded as “prepayments” the travel expenses incurred by the Company directly in connection with the project

is recorded as “inventories - production cost” and when the production has been completed and the film or television series is ready

for release such amount is transferred to inventory cost. After receiving the cost or expense settlement vouchers or statements issued

by the producer and audited or confirmed by the co-investors the assets originally recorded are adjusted according to the actual

settlement amount by transferring the Company’s share of the cost of the film or television series investment project from

“prepayments” to “inventories - production cost”. After obtaining copyright in the film or television series under the contract the actual

cost of the film or television series is wholly transferred to “inventories - goods on hand” and the revenue earned is offset against the

cost using the percentage of completion method. Under the percentage of completion method from the date the film or TV play is

granted a release permit (i.e. the date of satisfaction of the criteria for recognition of revenue) during the period of cost transfer the

Company uses the cost transfer rate (the proportion of total cost of the film or TV play to the total planned revenue) to calculate and

determine the cost of sales to be transferred in the current period and the inventories to be recognized at the end of the period.

5) Revenue from operator service

Revenue from operator service is recognized according to the relevant business settlement statements or third-party or technical

background business data provided according to the relevant cooperation agreement.The Company recognizes the revenue according to the settlement data provided by the operator and confirmed by the Company

and the operator prior to the balance sheet date or if the settlement data is not obtained from the operator prior to the balance sheet

date according to the data collected by the billing platform and other data and information available to the extent that the revenue can

be measured reliably and adjusts the same upon actual settlement.

6) Revenue from sale of hardware

Revenue from sale of hardware is recognized on a monthly basis according to the quantity of intelligent terminal products actually

sold in the given month and their selling prices.

7) Recognition of revenue from artiste agent service

* Artiste performance service

The service period is relatively short. In this service the Company mainly helps the artistes give commercial performance or

concerts and recognizes the revenue after a contracted artiste has fulfilled his or her contractual obligations.* Artiste shooting service

Shooting service includes participation by the artistes in the shooting of films and TV dramas and recording of programs. The

service period is about three months generally. The Company recognizes the revenue after a contracted artiste has fulfilled his or her

contractual obligations.* Artiste endorsement service

The term of an artiste’s endorsement is about 1-2 years generally. During the term of endorsement the artiste needs to be featured

in video commercials record theme songs and participate in public relations and other activities. The revenue is recognized according

to the specific contract terms. If the contract provides that after the performance of the obligations by the artiste and the service fee

already received by the Company will not be refunded except for force majeure the service fee may be wholly recognized as revenue.If the contract provides that in addition to indicating the force majeure the artiste needs to give exclusive endorsement or maintain his

or her good image the revenue is recognized in installments during the term of endorsement.

8) Derivative revenue from films TV dramas and programs

Derivative revenue from films TV dramas and programs is recognized after the showing thereof at such time as provided in the

relevant contract.

9) Revenue from games

The Company’s revenue from games mainly includes revenue from game copyright game distribution service and self-developed

games which are recognized as follows:

* Revenue from game copyright includes royalty revenue and minimum guarantee revenue. The royalties received by the

Company are recorded as contract liabilities upon receipt and included in the operating revenue for the current period using the straight

line method during the term of agreement. The minimum guarantees received are recognized as revenue when all the risks and rewards

have been transferred in accordance with the schedule of payment and division of revenues as provided in the relevant contract or

agreement.* Game distribution service is a mode of operation in which the Company obtains a license to operate an online game and then

enters into cooperation with Mango TV 360 Game Center or other third-party channel platforms to jointly operate the game; the players

of the game need to be registered as users of the third-party channel top up their accounts in the top-up system of the third-party

platform to obtain virtual cash and use such virtual cash to purchase virtual props. In the mode of joint operation by a third party each

third-party platform is responsible for the operation promotion charging service and management of billing system of its channel and

the Company recognizes its share of revenue as the operating revenue as calculated according to the cooperation agreement concluded

113Mango Excellent Media Co. Ltd. Annual Report 2023

with the third-party platform and confirmed by the Company and the third-party platform.* Self-developed games include online games and standalone games. In the mode of self-operation of an online game the

Company distributes and operates the game through its own or third-party channels and is solely responsible for the operation

promotion and maintenance of the game; the players of the game are directly registered with such channels and then log in to the game

top up their accounts to obtain virtual cash and use such virtual cash to purchase virtual props; after the game props purchased by the

players have been used up the Company recognizes the amount actually paid and consumed by the players as the operating revenue.Standalone games are available for downloading by the players in the form of a mobile standalone game package. When a player

purchases props of the game the embedded program generates a billing instruction; the telecom carrier or service provider sends a

billing code by text message and then the carrier confirms the deduction of the relevant telephone charge to complete the process of

billing and payment. The deduction and payment of the information charge for the mobile standalone game is irrevocable. After the

deduction of such charge by the carrier the risks and rewards are transferred to the users. The Company’s standalone games are

distributed jointly with third parties. After the users have downloaded and installed the games the Company is not responsible for the

management of the games or otherwise restricts the use of the games by the users that is the Company does not have control over

such games. In such mode the Company recognizes its share of revenue as the operating revenue as calculated according to the

cooperation agreement concluded with the relevant third-party platform and confirmed by the Company and the third-party platform.

10) Revenue from H5 interaction

Revenue from H5 interaction mainly comes from H5 interactive advertisements placed by clients in the television programs of

Hunan TV and is recognized after the showing of the relevant programs on Hunan TV.

11) Revenue from wireless value-added service

According to the wireless value-added service contract concluded by the Company and the relevant client if the contract specifies

the total contract price the contract price is allocated according to the schedule of payment during the term of license specified therein

if the contract price will be paid in installments or wholly recognized as revenue after the delivery of service if the contract price will

be paid in one lump sum. If the contract does not specify the total contract price the revenue is recognized according to the settlement

statements provided by the client.Difference in the accounting policy for revenue recognition arising from adoption of different modes of operation for the same kind of

business

None

25. Contract costs

Assets related to contract costs include contract acquisition costs and contract performance costs.If the incremental cost incurred by the Company to obtain a contract is expected to be recovered it is recognized as an asset as

the cost of obtaining a contract. If the amortization period of the cost of obtaining a contract does not exceed one year such cost is

directly included in the profit or loss for the current period.The cost incurred by the Company to perform a contract is not governed by the standards on inventories fixed assets or intangible

assets and if meeting the following criteria is recognized as an asset as the contract performance cost:

1. Such cost is directly related to an existing or expected contract including expenses for direct labor direct materials and

manufacturing (or similar expenses) costs to be clearly borne by the customer and other costs incurred only due to the contract;

2. Such cost increases the Company’s future resources for fulfilling its performance obligations; and

3. Such cost is expected to be recovered.

The Company amortizes the asset related to the contract cost on the same basis as the recognition of the revenue of the goods or

services related to the asset and includes it in the profit or cost for the current period.If the carrying amount of the asset related to the contract cost is higher than the remaining consideration expected to be obtained

due to the transfer of the goods or services related to the asset less the estimated cost then the Company makes a provision for

impairment of the excess and recognizes it as an impairment loss for the asset. If the impairment factors for prior periods have changed

afterwards so that the remaining consideration expected to be obtained due to the transfer of the goods or services related to the asset

less the estimated cost is higher than the carrying amount of the asset then the Company reverses the provision for impairment

originally made and include it in the profit or loss for the current period provided that the carrying amount after reversal shall not

exceed the carrying amount the asset would have reached on the date of reversal had the provision for impairment been not made.

26. Government grants

1. Government grants are recognized if (1) the Company meets the conditions attaching to the government grants; and (2) the

Company will receive the government grants. If a government grant is in the form of a transfer of a monetary asset the item is measured

at the amount received or receivable. If a government grant is in the form of a transfer of a non-monetary asset the item is measured

at fair value. If fair value is not reliably determinable the item is measured at a nominal amount.

2. Determination and accounting treatment of government grants related to assets

Government grants related to assets are government grants which are offered for purchasing constructing or otherwise acquiring

long-term assets as provided by the applicable government documents or in the absence of such express provision in the applicable

government documents government grants whose primary condition is that the Company should purchase construct or otherwise

acquire long-term assets. The government grants related to assets are offset against the carrying value of the related assets or recognized

as deferred income. Government grants related to assets recognized as deferred income are included in profit or loss over the service

life of the relevant assets on a reasonable and systemic basis. Government grants measured at nominal amount are directly recognized

in profit or loss for the current period. In case of sale transfer retirement or damage of the relevant assets before the end of intended

114Mango Excellent Media Co. Ltd. Annual Report 2023

service life the balance of the unallocated deferred income is transferred to profit or loss for the period in which the assets are disposed

of.

3. Determination and accounting treatment of government grants related to income

Government grants related to income are government grants other than those related to assets. Government grants related to both

assets and income in which it is difficult to make a distinction between the portion related to assets and the portion related to income

are wholly classified as government grants related to income.Government grants related to income as compensation for expenses or losses to be incurred in subsequent periods are recognized

as deferred income and in the period for recognizing the relevant costs expenses or losses included in profit or loss for the current

period or offset against the relevant costs. Government grants related to income as compensation for expenses or losses already incurred

are directly included in profit or loss for the current period or offset against the relevant costs.

4. Government grants related to day-to-day operations of the Company are recognized in other income or offset against the relevant

costs and expenses depending on the nature of economic business. Government grants not related to day-to-day operations of the

Company are recognized in non-operating revenues or expenses.

5. Accounting treatment of policy preferential loans and interest subsidies

(1) If the Ministry of Finance appropriates the interest subsidies to the lending bank and then the lending bank offers a loan to the

Company at the policy-based preferential interest rate the Company recognizes the loan amount actually received as the recorded

amount of the loan and calculates the borrowing costs according to the loan principal and such policy-based preferential interest rate.

(2) If the Ministry of Finance directly appropriates the interest subsidies to the Company the Company offsets the corresponding

interest subsidy against the related borrowing costs.

27. Deferred tax assets / deferred tax liabilities

1. The difference between the tax base of an asset or liability and its carrying value (or in case of an item not recognized as asset

or liability whose tax base can be determined according to the applicable tax law the difference between its tax base and carrying

value) is recognized as a deferred tax asset or deferred tax liability according to the tax rate applicable to the period in which the asset

or liability is expected to be recovered or settled.

2. Deferred income tax assets are recognized to the extent of the amount of income tax payable that will be available in future

periods against which deductible temporary differences are deductible. At the balance sheet date deferred tax assets not recognized in

prior periods are recognized if there’s conclusive evidence that it is probable that sufficient taxable income will be available in future

periods against which the deductible temporary differences are deductible.

3. At the balance sheet date the carrying value of a deferred tax asset is reviewed. The Company reduces the carrying value of a

deferred tax asset to the extent that it is no longer probable that sufficient taxable income will be available in future periods to allow

the benefit of the deferred tax asset to be utilized. Any such reduction in amount is reversed to the extent that it becomes probable that

sufficient taxable income will be available.

4. Current and deferred tax of the Company is recognized as income or an expense and included in profit or loss for the current

period except to the extent that the tax arises from: (1) business merger; or (2) a transaction or event which is recognized directly in

owner’s equity.

5. When the following conditions are met at the same time the Company will present the net amount of deferred income tax assets

and deferred income tax liabilities after offset: (1) It has the legal right to settle current income tax assets and current income tax

liabilities on a net basis; (2) deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the

same tax authority on the same taxpayer or related to different taxpayers provided that during the period in which each of the future

material deferred income tax assets and deferred income tax liability is reversed the taxpayer involved intends to net the current income

tax assets and current income tax liabilities or acquire assets and settle debts at the same time.

28. Lease

(1) The Company as lessee

At the commencement date of the lease term the Company recognizes a lease with a lease term not more than 12 months that

include no purchase option as short-term lease; and a lease at lower value when the individually leased asset is brand-new as low-value

asset lease. If the Company subleases or expects to sublease the leased assets the original lease is not recognized as a low-value asset

lease.For all short-term lease and low-value asset lease the Company recognizes the lease payments in the cost of relevant assets or

profit or loss for the current period on a straight-line basis over the term of the relevant lease.Except the above short-term leases and low-value asset leases subject to simplified treatment the Company recognizes the right

of use assets and lease liabilities on the lease at the commencement date of the lease period.

(1) Right of use assets

The right of use asset is initially measured at cost which includes: 1) the initially measured amount of the lease liability; 2) the

lease payments made on or before the commencement date of the lease term less the amount related to lease incentives (if any); 3) the

initial direct costs incurred by the lessee; 4) the costs that the lessee expects to incur in order to dismantle and remove the leased asset

restore the site where the leased asset locates or restore the leased asset to the condition agreed upon in the lease terms.The Company depreciates the right of use asset on a straight-line basis. If it reasonably ensures that ownership of the leased assets

will be obtained at the expiry of the lease term the Company will depreciate the leased assets over their remaining useful lives. If not

the Company will depreciate the leased asset over the shorter of the lease term or the remaining useful life of the leased asset.

115Mango Excellent Media Co. Ltd. Annual Report 2023

(2) Lease liabilities

At the commence date of the lease term the Company recognizes the present value of the outstanding lease payments as a lease

liability. When calculating the present value of lease payments the interest rate in the lease is determined as the discount rate. If the

interest rate in the lease is unavailable the Company’s incremental borrowing rate is determined as the discount rate. The difference

between the lease payments and their present value is recognized as an unrecognized financing expense with interest expenses

recognized at the discount rate used to recognize the present value of the lease payments and charged to profit or loss for the current

period over the term of the relevant lease. The variable lease payments not measured as the lease liability are recognized in profit or

loss when they are actually incurred.After the commencement date of the lease term when there is a change in the substantive fixed payments the expected amount

of payable for the guaranteed residual value the index or rate used to determine the lease payments or the evaluation result or actual

exercise of the purchase option renewal option or termination option the Company will remeasure the lease liability at the present

value of the changed lease payments and adjusts the carrying amount of the right of use asset accordingly. If the carrying amount of

the right of use asset has been reduced to nil but the lease liability still needs to be further reduced the remaining amount will be

recognized in profit or loss for the current period.

(2) The Company as lessor

At the commencement date of the lease term the Company classifies a lease as finance lease whenever the terms of the lease

transfer substantially all the risks and rewards of ownership to the lessee and all other leases as operating leases.The Company recognizes lease receipts as rental income on a straight-line basis over the term of the relevant lease with initial

direct costs incurred capitalized and apportioned on the same basis of recognizing rental income to include in profit or loss for the

current period separately. Variable lease payments obtained by the Company relevant to operating leases that are not included in the

lease receipts are recognized in profit or loss when they are actually incurred.

(1) Operating lease

The Company recognizes lease receipts as rental income on a straight-line basis over the term of the relevant lease with initial

direct costs incurred capitalized and apportioned on the same basis of recognizing rental income to include in profit or loss for the

current period separately. Variable lease payments obtained by the Company relevant to operating leases that are not included in the

lease receipts are recognized in profit or loss when they are actually incurred.

(2) Finance lease

On the commencement date of the lease period the Company recognizes the finance lease payments receivable in accordance

with the net lease investment (sum of the unguaranteed balance and the lease payment not received on the commencement date of the

lease period based on the present value discounted at the inherent interest rate of the lease) and derecognizes the finance lease assets.At each phase of the lease period the Company calculates and recognizes the interest income at the inherent interest rate of the lease.The amount of variable lease payments obtained by the Company that are not accrued to the measurement of net lease investment

is accrued to the current profit and loss when actually incurred.

29. Other significant accounting policies and accounting estimates

Customer credit policy

The accounting for customer credits requires an estimate of the fair value and the time and possibility of use of credits. Valuation

and recording of customer credits require judgment and estimation. If the result of re-estimation is different from the current estimation

such difference will affect the carrying value of contract liabilities for the period in which the estimation is changed.

30. Changes in significant accounting policies and accounting estimates

(1) Changes in significant accounting policies

□Applicable □N/A

In RMB

Content and reason of changes in accounting policies Item significantly affected Amount affected

Since January 1 2023 the Company has adopted the provisions

contained in the Interpretation of the Accounting Standards for Business

Enterprises No. 16 issued by the Ministry of Finance regarding the

See Note“accounting treatment of deferred taxes related to assets and liabilitiesarising from single transactions to which the initial recognitionexemption does not apply”.Note: Effect of adoption of the Interpretation of the Accounting Standards for Business Enterprises No. 16:

Since January 1 2023 we have adopted the provisions contained in the Interpretation of the Accounting Standards for BusinessEnterprises No. 16 issued by the Ministry of Finance regarding the “accounting treatment of deferred taxes related to assets andliabilities arising from single transactions to which the initial recognition exemption does not apply” and adjusted the single

transactions to which such provisions apply that occurred during the period from the beginning of the earliest period in which we

adopted such provisions in the presentation of its financial statements for the first time till the date of initial adoption of such provisions

116Mango Excellent Media Co. Ltd. Annual Report 2023

as follows: with respect to the taxable temporary difference and deductible temporary differences arising from lease liabilities and

right-of-use assets provisions related to retirement obligations and corresponding assets recognized in connection with the single

transactions to which such provisions apply at the beginning of the earliest period in which we adopted such provisions in the

presentation of its financial statements for the first time the cumulative effect is treated as an adjustment to the opening retained

earnings and other related financial statement items for that period in accordance with such provisions and the provisions of the

Accounting Standards for Business Enterprises No. 18 “Income Tax”. The table shows the specific adjustments:

Item significantly affected Amount affected Remark

Items of the balance sheet at December

312022

Deferred tax assets 6782.33

Deferred tax liabilities 227428.11

Undistributed profits -220645.78

Items of the income statement for the

year ended December 31 2022

Income tax expenses -47210.10

(2) Changes in significant accounting estimates

□Applicable √ N/A

(3) Adjustments to related financial statement items for the period in which the new accounting standards were adopted for

the first time since 2023

□Applicable √ N/A

VI. Taxes

1. Major categories of taxes and tax rates

Tax type Taxation basis Tax rate

VAT payable is the output tax based on the

sales of goods and taxable labor income

VAT calculated pursuant to the tax law net of 13% 9% 5% 6% 3%

the input tax that is allowed to be deducted

in the current period.Consumption tax Taxable sales turnover (volume) 5%

Urban maintenance and construction tax Actually paid turnover tax 7% 5%

Enterprise income tax Taxable income Tax exemption 8.25% 15% 16.5% 25%

Taxable service income stipulated by the

Cultural program expenditure 1.5%

tax law

If it is levied on an ad valorem basis the

tax is calculated as 1.2% of the remaining

value after being deducted 20% of the

Property tax 1.2% 12%

original value of the property; if it is levied

subject to rent the tax is calculated as 12%

of the rental income.Education surcharges Actually paid turnover tax 3%

Local education surcharges Actually paid turnover tax 2%

Disclosure of taxpayers with different rates of enterprise income tax:

Taxpayer Rate of enterprise income tax

Happigo Co. Ltd. Tax exemption

Happy Sunshine Tax exemption

Mango Studios Culture Co. Ltd. (“Mango Studios”) Tax exemption

Hunan Mango Entertainment Co. Ltd. (“Mango Entertainment”) Tax exemption

Hunan Happy Mango Fun Technology Co. Ltd. Tax exemption

Hunan E.E. Media Film and Television Production Co. Ltd. Tax exemption

Hunan Golden Eagle Cartoon Media Co. Ltd. (“Golden Eagle Cartoon”) Tax exemption

Hainan E.E. Media Co. Ltd. 15%

Happy Sunshine Xingmang Interactive Entertainment Media Co. Ltd. 15%

Xiaomang E-commerce Co. Ltd. 15%

117Mango Excellent Media Co. Ltd. Annual Report 2023

Hunan Maiji Park Cultural Development Co. Ltd. 5%

Dameiren Global Trading Co. Limited 8.25% 16.5%

Mgtv.com (Hong Kong) Media Company Limited 8.25% 16.5%

Other taxpayers not listed above 25%

2. Tax incentives

1. Happy Sunshine Mango Studios Mango Entertainment Hunan Happy Mango Fun Technology Co. Ltd. Hunan E.E. Media

Film and Television Production Co. Ltd. Happigo and Golden Eagle Cartoon are enterprises transformed from cultural public

institutions with for-profit operations approved by the Ministry of Finance and the State Administration of Taxation. In accordance

with the Notice of Continuing Implementing Several Tax Policies for the Transformation of Cultural Public Institutions with For-Profit

Operations into Enterprises During the Cultural System Reform jointly released by the Ministry of Finance the State Administration

of Taxation and the Publicity Department of the CPC Central Committee (Cai Shui [2019] No. 16) in February 2019 cultural

enterprises transformed are qualified to be exempt from enterprise income tax within five years from January 1 2019. This period is

the fifth year of exempting from enterprise income tax.

2. Pursuant to the List of the Second Batch of High and New Technology Enterprises Recognized and Filed by the Recognition

Authority of Hunan Province in 2023 jointly issued by the Office of the National Leading Group for Recognition Management of High

and New Technology Enterprises and the Hunan Provincial Department of Science and Technology Xiaomang E-commerce Co. Ltd.was recognized as a high and new technology enterprise with a term of three years (Certificate No.: GR202343005636) and therefore

is subject to a reduced enterprise income tax rate of 15% applicable to high and new technology enterprises from 2023 to 2025.

3. Pursuant to the List of the First Batch of High and New Technology Enterprises Recognized and Filed by the Recognition

Authority of Hunan Province in 2022 issued by the Office of the National Leading Group for Recognition Management of High and

New Technology Enterprises Happy Sunshine was recognized as a high and new technology enterprise with a term of three years

(Certificate No.: GR202243000815) and therefore is subject to a reduced enterprise income tax rate of 15% applicable to high and

new technology enterprises from 2022 to 2024.

4. Pursuant to the Notice on the Preferential Enterprise Income Tax Policy for the Hainan Free Trade Port jointly released by the

Ministry of Finance and the State Administration of Taxation (Cai Shui [2020] No. 31) the encouraged enterprises registered and

actually operating at the Hainan Free Trade Port are subject to a reduced enterprise income tax rate of 15% from January 1 2020 till

December 31 2024. Happy Sunshine Xingmang Interactive Entertainment Media Co. Ltd. and Hainan E.E. Media Co. Ltd. met such

conditions and therefore enjoyed such preferential enterprise income tax policy in 2023.

5. As stipulated by the Announcement of the General Administration of Taxation of the Ministry of Finance on Related Tax

Policies for Further Supporting the Development of SMEs and Private Businesses (Announcement No. 12 of the General

Administration of Taxation of the Ministry of Finance 2023) from January 1 2023 to December 31 2027 taxable incomes of SMEs

shall be reduced to 25% and enterprise income taxes shall be levied at a rate of 20%. Hunan Maiji Park Cultural Development Co.Ltd. is entitled the above preferential enterprise income tax policy for the period.

6. Pursuant to the Announcement of the Ministry of Finance and the State Administration of Taxation on Further Clarifying the

Value-added Tax Reduction and Exemption and Other Policies for Small-scale Value-added Tax Payers (Announcement of the

Ministry of Finance and the State Administration of Taxation [2023] No. 1) taxpayer engaged in producer services are permitted to

deduct their taxable income by an amount equal to 105% of their deductible input tax for the current period and taxpayer engaged in

life services are permitted to deduct their taxable income by an amount equal to 110% of their deductible input tax for the current

period from January 1 2023 till December 31 2023.

7. In accordance with the Notice of the Ministry of Finance on Relevant Policies on Adjusting Certain Government-Managed

Funds (Cai Shui [2019] No. 46) from July 1 2019 to December 31 2024 development fees for cultural undertakings attributable to

the Central Treasury shall be reduced at 50% of the taxable income paid by the taxpayer. In accordance with the Notice of Huanan

Provincial Department of Finance on Relevant Policies on Adjusting Development Fees for Cultural Undertakings (Xiang Cai Zong

(2019) No. 11) from July 1 2019 to December 31 2024 local enterprises and institutions and individuals can pay the development

fees for cultural undertakings under a reduction rate of 50%.VII. Notes to Items in the Consolidated Financial Statements

1. Cash and bank balances

In RMB

Item Closing balance Opening balance

Cash on hand 34083.85 88009.61

Bank deposits 11857589366.06 10345526756.10

Other monetary capital 24584807.69 24067334.48

Total 11882208257.60 10369682100.19

Other information:

Among the closing balance of bank deposits RMB12942129.82 was frozen due to litigation and RMB954663.47 was security

deposits the use of which was restricted.Among the closing balance of other monetary capital RMB995119.88 was third-party platform deposits the use of which was

118Mango Excellent Media Co. Ltd. Annual Report 2023

restricted.

2. Held-for-trading financial assets

In RMB

Item Closing balance Opening balance

Financial assets measured at fair value with any changes

1052000000.002695000000.00

accrued to the current profits and losses

Incl.:

Finance products 1052000000.00 2695000000.00

Incl.:

Total 1052000000.00 2695000000.00

Other information:

3. Notes receivable

(1) Presentation of notes receivable by category

In RMB

Item Closing balance Opening balance

Banker’s acceptance bills 34920000.00 1374099617.12

Commercial acceptance bills 50439883.64

Total 34920000.00 1424539500.76

(2) Presentation by method of recognition of provision for bad debts

In RMB

Closing balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Carrying

Proportio Amoun Proportio Carrying value Amoun

Amount Amount Proportion Proportion value

n t n t

Incl.:

Notes receivable for

which the provision for 1424562 23151. 14245395

bad debts were made by 34920000.00 100.00% 34920000.00 100.00% 0.01% 652.53 77 00.76

group

Incl.:

Banker’s acceptance 1374099 13740996

bills 34920000.00 100.00% 34920000.00 96.46% 617.12 17.12

Commercial acceptance 5046303 23151. 50439883.bills 3.54% 0.05% 5.41 77 64

142456223151.14245395

Total 34920000.00 100.00% 34920000.00 100.00% 0.01%

652.537700.76

Provisions for bad debts made by group:

In RMB

Closing balance

Item

Book balance Bad debt provision Proportion

Group of banker’s acceptance

34920000.00

bills

Total 34920000.00

Description of basis for determining the group:

Provisions for bad debts made for notes receivable in accordance with the general model of expected credit losses (“ECL”):

□Applicable √ N/A

(3) Provisions recovery or reversal of bad debts for the current period

Provision for bad debts made for the current period:

In RMB

119Mango Excellent Media Co. Ltd. Annual Report 2023

Changes for the current period

Opening

Category Recovery or Closing balance

balance Provision Write-off Others

reversal

Provision for

bad debts by 23151.77 -23151.77

group

Total 23151.77 -23151.77

Significant recovery or reversal of bad debt provision for the current period:

□Applicable □N/A

(4) Notes receivable already endorsed or discounted but not yet become due at the balance sheet date

In RMB

Item Balance derecognized at the end of the period Balance not derecognized at the end of the period

Banker’s acceptance

34920000.00

bills

Total 34920000.00

4. Accounts receivable

(1) Presentation by aging

In RMB

Aging Opening book balance Closing book balance

Within 1 year (inclusive) 2943842242.71 2673410461.03

1-2 years 397974645.55 312602330.35

2-3 years 148659620.53 253671558.04

Over 3 years 372906782.88 300450173.44

3-4 years 176552081.76 246115723.72

4-5 years 147583365.37 37994170.59

Over 5 years 48771335.75 16340279.13

Total 3863383291.67 3540134522.86

(2) Presentation by method of recognition of provision for bad debts

In RMB

Closing balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Carrying

Proportio Amoun Proportio Carrying value Amoun

Amount Amount Proportion Proportion value

n t n t

Accounts receivable for

which the provision for 64684 8374463 66739 17004676.bad debts are made 81268801.50 2.10% 79.59% 16584676.55 2.37% 79.69% 124.95 4.94 958.39 55

individually

Incl.:

Accounts receivable for

which the provision for 302175 3456389 233959 32224303

bad debts are made by 3782114490.17 97.90% 7.99% 3479938693.60 97.63% 6.77% 796.57 887.92 524.07 63.85

group

Incl.:

366859354013430069932394350

Total 3863383291.67 100.00% 9.50% 3496523370.15 100.00% 8.49%

921.52522.86482.4640.40

Provisions for bad debts made individually: RMB64684124.95

In RMB

Opening balance Closing balance

Name Bad debt Bad debt Reason for

Book balance Book balance Proportion

provision provision provisions

Likely to be non-

The first 23383374.87 16777045.64 23383374.87 16777045.64 71.75%

recoverable

The second 11755050.00 3526515.00 11155050.00 3346515.00 30.00% Likely to be non-

120Mango Excellent Media Co. Ltd. Annual Report 2023

recoverable

Expected to be

The third 10786000.00 10786000.00 10786000.00 10786000.00 100.00%

non-recoverable

Likely to be non-

Others 37820210.07 35650397.75 35944376.63 33774564.31 93.96%

recoverable

Total 83744634.94 66739958.39 81268801.50 64684124.95 --

Provisions for bad debts made by group: RMB302175796.57

In RMB

Closing balance

Name

Book balance Bad debt provision Proportion

Aging group 2965806985.22 302175796.57 10.19%

Group of receivables from

related parties controlled by the 816307504.95

same actual controller

Total 3782114490.17 302175796.57

Description of basis for determining the group:

Provisions for bad debts made for notes receivable in accordance with the general model of ECL:

□Applicable □N/A

(3) Provisions recovery or reversal of bad debts for the current period

Provisions for bad debts made for the current period

In RMB

Changes for the current period

Category Opening balance Recovery or Closing balance

Provision Write-off Others

reversal

Provisions for bad

debts made 66739958.39 192870.14 2248703.58 64684124.95

individually

Provisions for bad

233959524.0768216272.50302175796.57

debts made by group

Total 300699482.46 68409142.64 2248703.58 366859921.52

Significant recovery or reversal of bad debt provision for the current period:

In RMB

Basis for determining

Amount of recovery or the proportion of

Entity Reason for recovery Method of recovery

reversal provision for bad debts

and its reasonableness

No significant provision for bad debts was recovered or reversal in the current period.

(4) Accounts receivable actually written off for the current period

In RMB

Item Write-off amount

Information of significant accounts receivable that are written off:

In RMB

Whether the amount

Nature of accounts Write-off procedures

Entity Write-off amount Reason for write-off arises from related-

receivable performed

party transactions

Description of write-off of accounts receivable:

No accounts receivable was actually written off in the current period.

(5) Top five closing balances of accounts receivable and contract assets categorized by debtor

In RMB

Total closing Proportion of total

Closing balance of Closing balance of

Closing balance of balance of closing balance of

Entity accounts provisions for bad

contract assets accounts accounts

receivable debts

receivable and receivable and

121Mango Excellent Media Co. Ltd. Annual Report 2023

contract assets contract assets

The first 407019813.68 453681820.30 860701633.98 18.11% 43129770.17

The second 379464569.15 379464569.15 7.98%

The third 333165220.54 333165220.54 7.01% 16658261.03

The fourth 264411329.80 264411329.80 5.56% 14220566.49

The fifth 192697344.54 192697344.54 4.05%

Total 1576758277.71 453681820.30 2030440098.01 42.71% 74008597.69

5. Contract assets

(1) Details of contract assets

In RMB

Closing balance Opening balance

Item Bad debt Bad debt

Book balance Carrying value Book balance Carrying value

provision provision

Operator

890102310.0051410460.86838691849.14984299576.9354895640.42929403936.51

business

total 890102310.00 51410460.86 838691849.14 984299576.93 54895640.42 929403936.51

(2) Presentation by method of recognition of provision for bad debts

In RMB

Closing balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Carrying

Proportio Amoun Proportio Carrying value Amoun

Amount Amount Proportion Proportion value

n t n t

Incl.:

Provision for bad debts 51410 9842995 54895 929403936

made by group 890102310.00 100.00% 5.78% 838691849.14 100.00% 5.58% 460.86 76.93 640.42 .51

Incl.:

51410984299554895929403936

Total 890102310.00 100.00% 5.78% 838691849.14 100.00% 5.58%

460.8676.93640.42.51

Total amount of provision for bad debts made by group: RMB51410460.86.In RMB

Closing balance

Item

Book balance Bad debt provision Proportion

Group of operator business 890102310.00 51410460.86 5.78%

Total 890102310.00 51410460.86

Description of basis for determining the group:

Provisions for bad debts made in accordance with the general model of ECL:

□Applicable √ N/A

(3) Provisions recovery or reversal of bad debts for the current period

In RMB

Item Provision Recovery or reversal Write-off Reason

Provision for bad debts

-3485179.56

made by group

Total -3485179.56 -

Significant recovery or reversal of bad debt provision for the current period:

In RMB

Basis for determining

Amount of recovery or the proportion of

Entity Reason for recovery Method of recovery

reversal provision for bad debts

and its reasonableness

Other information:

122Mango Excellent Media Co. Ltd. Annual Report 2023

(4) Accounts receivable actually written off for the current period

In RMB

Item Write-off amount

Information of significant accounts receivable that are written off:

In RMB

Whether the amount

Nature of accounts Write-off procedures

Entity Write-off amount Reason for write-off arises from related-

receivable performed

party transactions

Description of write-off of accounts receivable:

No contract asset was actually written off in the current period.Other information:

6. Accounts receivable financing

(1) Presentation of accounts receivable financing by category

In RMB

Item Closing balance Opening balance

Banker’s acceptance bills 690394858.57 49054442.19

Letters of credit 8000000.00

Total 698394858.57 49054442.19

(2) Presentation by method of recognition of provision for bad debts

In RMB

Closing balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Carrying

Proportio Amoun Proportio Carrying value Amoun

Amount Amount Proportion Proportion value

n t n t

Incl.:

Provision for bad debts 4905444 49054442.made by group 698394858.57 100.00% 698394858.57 100.00% 2.19 19

Incl.:

490544449054442.

Total 698394858.57 100.00% 698394858.57 100.00%

2.1919

Total amount of provision for bad debts made by group: Nil.Closing balance

Item

Book balance Bad debt provision Proportion

Provision for bad debts made

698394858.57

by group

Total 698394858.57

Description of basis for determining the group:

Provisions for bad debts made in accordance with the general model of ECL:

In RMB

Stage I Stage II Stage III

Lifetime ECL

Bad debt provision Future 12-month Lifetime ECL (with Total

(without credit

ECL credit impairment)

impairment)

Balance at January 1 2023 in

the current period:

Basis for determination of stages and proportion of provision for bad debts:

Changes in book balance whose loss allowance changed significantly in the current period:

123Mango Excellent Media Co. Ltd. Annual Report 2023

(3) Accounts receivable financing already endorsed or discounted but not yet become due at the balance sheet

date

In RMB

Item Balance derecognized at the end of the period Balance not derecognized at the end of the period

Banker’s acceptance

583906273.61

bills

Letters of credit 271949741.00

Total 855856014.61

7. Other receivables

In RMB

Item Closing balance Opening balance

Other receivables 47852640.07 57117565.37

Total 47852640.07 57117565.37

(1) Other receivables

1) Classification of other receivables by nature

In RMB

Nature Closing book balance Opening book balance

Security deposit 19318333.70 36034726.83

Amount due to or from related parties 5196090.37 6476459.35

Suspense payments receivable 2490337.84 4223880.28

Petty cash 9418011.24 8481654.54

Receivables and payables 24349805.30 13444936.71

Total 60772578.45 68661657.71

2) Presentation by aging

In RMB

Aging Closing book balance Opening book balance

Within 1 year (inclusive) 29587160.90 38308635.19

1-2 years 6355747.68 5999901.68

2-3 years 5244596.68 8340533.84

Over 3 years 19585073.19 16012587.00

3-4 years 6159143.40 3872664.29

4-5 years 1515668.57 7395551.78

Over 5 years 11910261.22 4744370.93

Total 60772578.45 68661657.71

3) Presentation by method of recognition of provision for bad debts

□Applicable □N/A

In RMB

Closing balance Opening balance

Book balance Bad debt provision Book balance Bad debt provision

Category Carrying

Proportio Amoun Proportio Carrying value Amoun

Amount Amount Proportion Proportion value

n t n t

Provision for bad debts 89864 9164635 82373

made individually 9913746.23 16.31% 90.65% 927273.03 13.35% 89.88% 927273.03 73.20 .72 62.69

Incl.:

Provision for bad debts

made by group 50858832.22 83.69% 39334 7.73% 46925367.04 5949702 86.65% 33067 5.56% 56190292.

124Mango Excellent Media Co. Ltd. Annual Report 2023

65.181.9929.6534

Incl.:

1291968661651154457117565.

Total 60772578.45 100.00% 21.26% 47852640.07 100.00% 16.81%

938.387.71092.3437

Provisions for bad debts made individually: RMB8986473.20.In RMB

Opening balance Closing balance

Name Bad debt Bad debt Reason for

Book balance Book balance Proportion

provision provision provisions

Provision for bad Likely to be non-

debts made 9164635.72 8237362.69 9913746.23 8986473.20 90.65%

individually recoverable

Total 9164635.72 8237362.69 9913746.23 8986473.20 --

Provisions for bad debts made by group: RMB3933465.18.In RMB

Closing balance

Name

Book balance Bad debt provision Proportion

Group of receivables from

related parties controlled by the 3166325.68

same actual controller

Group of security deposits

18789813.71

receivable

Aging group 28902692.83 3933465.18 13.61%

Total 50858832.22 3933465.18

Description of basis for determining the group:

Provisions for bad debts made in accordance with the general model of ECL:

In RMB

Stage I Stage II Stage III

Provisions for bad

Lifetime ECL (without Lifetime ECL (with Total

debts Future 12-month ECL

credit impairment) credit impairment)

Balance as at January

523940.68122362.2510897789.4111544092.34

12023

Balance as at January

1 2023 in the current

period

-- Stage II -105903.09 105903.09

-- Stage III -50301.32 50301.32

Current provision 594006.97 -69564.92 874726.24 1399168.29

Current write-off 23322.25 23322.25

Balance as at

1012044.56108399.1011799494.7212919938.38

December 31 2023

Basis for determination of stages and proportion of provision for bad debts:

Changes in book balance whose loss allowance changed significantly in the current period:

□Applicable □N/A

4) Provisions recovery or reversal of bad debts for the period

Provision for bad debts made for the current period:

In RMB

Changes for the current period

Opening

Category Recovery or Closing balance

balance Provision Write-off Others

reversal

Provisions for

11544092.341399168.2923322.2512919938.38

bad debts

Total 11544092.34 1399168.29 23322.25 12919938.38

Including significant amounts recovered or reversed from the current provision for bad debts:

In RMB

Basis for determining

Amount of recovery or the proportion of

Entity Reason for recovery Method of recovery

reversal provision for bad debts

and its reasonableness

125Mango Excellent Media Co. Ltd. Annual Report 2023

No significant provision for bad debts was recovered or reversal in the current period.

5) Other receivables actually written off for the period

In RMB

Item Write-off amount

Other receivables 23322.25

Descriptions of significant other receivables that are written off:

In RMB

Whether the

Write-off payments were

Nature of other Reasons for write-

Entity Write-off amount procedures generated from

receivables off

performed related-party

transactions

Descriptions of write-off of other receivables:

6) Top five closing balances of other receivables categorized by debtor

In RMB

Proportion in total Closing balance of

Entity Nature Closing balance Aging closing balance of provisions for bad

other receivables debts

Receivables and

The first 8546713.60 Within 1 year 14.06% 427335.68

payables

Amount due to or

The second from related 2029764.69 Over 5 years 3.34% 2029764.69

parties

Receivables and

The third 2000000.00 1-2 years 3.29% 200000.00

payables

The fourth Security deposit 2000000.00 Within 1 year 3.29%

Receivables and

The fifth 1746310.20 Within 1 year 2.87% 87315.51

payables

Total 16322788.49 26.85% 2744415.88

8. Prepayments

(1) Presentation of prepayments by aging

In RMB

Closing balance Opening balance

Aging

Amount Percentage Amount Percentage

Within 1 year 703944332.23 69.24% 1121304181.75 67.49%

1-2 years 116269839.01 11.44% 446355580.68 26.87%

2-3 years 174573702.88 17.17% 14407355.13 0.87%

Over 3 years 21876500.06 2.15% 79323028.73 4.77%

Total 1016664374.18 1661390146.29

Reasons for overdue settlement of prepayments with significant amounts and aged more than 1 year:

Entity Closing balance Reasons for unsettlement

The first Prepayments for copyrights pending

58653586.43

broadcasting

The second 49999516.00 U ndelivered goods

The third Prepayments for copyrights pending

31733651.04

broadcasting

Sub-total 140386753.47

126Mango Excellent Media Co. Ltd. Annual Report 2023

(2) Top five closing balances of prepayments categorized by receivers

Entity Book balance Proportion to total

prepayments (%)

The first 99622641.47 8.71

The second 84528302.21 7.39

The third 59207547.14 5.18

The fourth 59113207.92 5.17

The fifth 58653586.43 5.13

Sub-total 361125285.17 31.58

Other information:

9. Inventories

Did the Company need to comply with the disclosure requirements on the real estate industry

No

(1) Categories of inventories

In RMB

Closing balance Opening balance

Provision for Provision for

decline in value decline in value

of inventories or of inventories or

Item

Book balance for impairment of Carrying value Book balance for impairment of Carrying value

contract contract

performance performance

costs costs

Raw materials 70747527.56 70747527.56 110454024.29 110454024.29

Work in process 760533375.34 760533375.34 756888334.48 756888334.48

Goods on hand 1023495995.75 152362654.35 871133341.40 829494139.87 140737871.18 688756268.69

Turnover

807117.7241751.25765366.47863306.8541751.25821555.60

materials

Goods upon

14256078.5614256078.5651898680.1051898680.10

delivery

Total 1869840094.93 152404405.60 1717435689.33 1749598485.59 140779622.43 1608818863.16

(2) Provision for decline in value of inventories and for impairment of contract performance costs

In RMB

Increase in the current period Decrease in the current period

Item Opening balance Reversal or write- Closing balance

Provision Others Others

off

Work in process 140737871.18 16104442.05 4479658.88 152362654.35

Goods on hand 41751.25 41751.25

Total 140779622.43 16104442.05 4479658.88 152404405.60

As to the Company’s products directly used for sale the net realizable value was recognized by: the estimated selling price of the

inventory minus the estimated selling expenses and relevant taxes. External sales have been realized with respect to the current write-

off of provision for decline in value of inventories.Provision for decline in value of inventories made by group:

In RMB

End of the current period Beginning of the current period

Name of group Provision for Provision for

Closing balance Proportion Opening balance Proportion

decline decline

Criteria for provision for decline in value of inventories made by group:

127Mango Excellent Media Co. Ltd. Annual Report 2023

10. Non-current assets due within one year

In RMB

Item Closing balance Opening balance

(1) Debt investments due within one year

□Applicable □N/A

(2) Other debt investments due within one year

□Applicable □N/A

11. Other current assets

In RMB

Item Closing balance Opening balance

Prepayments for Internet access

7628577.6613696428.21

cooperation

Input VAT to be deducted 115296910.67 83150519.10

Others 7252743.79 16615582.49

Total 130178232.12 113462529.80

Other information:

12. Long-term equity investments

In RMB

Opening Increase or decrease for the period Closing

Opening balance of Closing balance of

Additio Investment Adjustment Declared Provisio

balance provisions Other balance provision

Investee nal Decreased profit or loss in other cash ns for

(carrying for equity Others (carrying for

investm investment under equity comprehensi dividends impairm

value) impairme changes value) diminution

ent method ve income or profits ent

nt in value

I. Joint ventures

II. Associates

Shanghai

Mamma Mia

Interactive 4123864 1718190 17181905.Entertainment -4123864.73 .73 5.95 95

Technology Co.Ltd.

4123864171819017181905.

Sub-total -4123864.73.735.9595

4123864171819017181905.

Total -4123864.73.735.9595

Recoverable amount determined based on fair value net of disposal cost:

□Applicable □N/A

Recoverable amount determined based on present value of expected future cash flows:

□Applicable □N/A

Reason of significant difference between the information set out above and the information used in prior year’s impairment assessment

or external information:

Reason of significant difference between the information used in prior year’s impairment assessment and the actual situation of the

current year:

Other information:

128Mango Excellent Media Co. Ltd. Annual Report 2023

13. Investment properties

(1) Investment properties measured at cost

□Applicable □N/A

Unit: RMB

Item Buildings Land use right Construction in process Total

I. Original carrying value:

1. Opening balance 84309445.29 84309445.29

2. Increase in the

current period

(1) Purchase

(2) Inventory/fixed

assets/transfer from

construction in progress

(3) Increase due to

business merger

3. Current decreases

(1) Disposal

(2) Other

amounts transferred out

4. Closing balance 84309445.29 84309445.29

II. Accumulative

depreciation and

accumulative

amortization

1. Opening balance 928411.69 928411.69

2. Current increase 2296981.37 2296981.37

(1) Provision or

2296981.372296981.37

amortization

3. Current decreases

(1) Disposal

(2) Other

amounts transferred out

4. Closing balance 3225393.06 3225393.06

III. Provision for

impairment

1. Opening balance

2. Current increase

(1) Provision

3. Current decreases

(1) Disposal

(2) Other

amounts transferred out

4. Closing balance

IV. Carrying value

1. Closing carrying

81084052.2381084052.23

value

2. Opening carrying

83381033.6083381033.60

value

Recoverable amount determined based on fair value net of disposal cost:

□Applicable □N/A

Recoverable amount determined based on present value of expected future cash flows:

□Applicable □N/A

129Mango Excellent Media Co. Ltd. Annual Report 2023

Reason of significant difference between the information set out above and the information used in prior year’s impairment assessment

or external information:

Reason of significant difference between the information used in prior year’s impairment assessment and the actual situation of the

current year:

Other information:

(2) Investment properties measured at fair value

□Applicable √ N/A

14. Fixed assets

In RMB

Item Closing balance Opening balance

Fixed assets 142419568.37 173715579.21

Total 142419568.37 173715579.21

(1) Details of fixed assets

In RMB

Electronic

Machines and equipment Transportation

Item Buildings Others Total

equipment devices and equipment

furniture

I. Original carrying

value:

1. Opening balance 58268091.66 328859161.06 309321735.99 18299945.31 11000000.00 725748934.02

2. Increase in the

722319.869982676.1110704995.97

current period

(1) Purchase 722319.86 9982676.11 10704995.97

(2) Transfer from

construction in

progress

(3) Increase due to

business merger

3. Decrease in the

19097888.954586880.442607951.0026292720.39

current period

(1) Disposal or

19097888.954586880.442607951.0026292720.39

retirement

4. Closing balance 58268091.66 310483591.97 314717531.66 15691994.31 11000000.00 710161209.60

II. Accumulated

depreciation

1. Opening balance 14507279.97 290829659.11 232228293.48 14073007.76 551638240.32

2. Increase in the

1908705.3712867792.0625979281.211034197.4741789976.11

current period

(1) Provision 1908705.37 12867792.06 25979281.21 1034197.47 41789976.11

3. Decrease in the

19086373.114517763.122477553.4626081689.69

current period

(1) Disposal or

19086373.114517763.122477553.4626081689.69

retirement

4. Closing balance 16415985.34 284611078.06 253689811.57 12629651.77 567346526.74

III. Provision for

impairment

130Mango Excellent Media Co. Ltd. Annual Report 2023

1. Opening balance 391088.27 4026.22 395114.49

2. Increase in the

current period

(1) Provision

3. Decrease in the

current period

(1) Disposal or

retirement

4. Closing balance 391088.27 4026.22 395114.49

VI. Carrying value

1. Closing balance 41852106.32 25481425.64 61023693.87 3062342.54 11000000.00 142419568.37

2. Opening balance 43760811.69 37638413.68 77089416.29 4226937.55 11000000.00 173715579.21

(2) Fixed assets leased out under operating lease

In RMB

Item Closing carrying value

Buildings 22478413.02

15. Right-of-use assets

(1) Details of right-of-use assets

In RMB

Item Buildings Total

I. Original carrying value:

1. Opening balance 276220823.46 276220823.46

2. Increase in the current period 138902030.11 138902030.11

(1) Lease in 138902030.11 138902030.11

3. Decrease in the current period 66733461.50 66733461.50

(1) Disposal 33057412.03 33057412.03

(2) Expiration of lease 33676049.47 33676049.47

4. Closing balance 348389392.07 348389392.07

II. Accumulated depreciation

1. Opening balance 95426037.24 95426037.24

2. Increase in the current period 83840720.26 83840720.26

(1) Provision 83840720.26 83840720.26

3. Decrease in the current period 59464779.04 59464779.04

(1) Disposal 25788729.57 25788729.57

(2) Expiration of lease 33676049.47 33676049.47

4. Closing balance 119801978.46 119801978.46

III. Provision for impairment

1. Opening balance

2. Increase in the current period

(1) Provision

3. Decrease in the current period

(1) Disposal

4. Closing balance

VI. Carrying value

1. Closing balance 228587413.61 228587413.61

2. Opening balance 180794786.22 180794786.22

131Mango Excellent Media Co. Ltd. Annual Report 2023

16. Intangible assets

(1) Details of intangible assets

In RMB

Patent

Non- Trademark licensing

Films and TV

Land use Paten patent s and fees and Game

Item dramas Software Total

rights t technolog domain program copyright

copyright

y names adaptation

rights

I. Original

carrying

value

1. Opening 33157507. 25809815188. 438538674. 4746884. 36792452. 27920810. 26350971517.

balance 40 69 17 13 82 64 85

2. Increase

in the 6267314397.0 3944832.9 6272670365.5

1411135.55

current 1 4 0

period

(1)6267314397.03944832.96272670365.5

1411135.55

Purchase 1 4 0

(2) Internal

research

and

developme

nt

(3) Increase

due to

business

mergers

3. Decrease

in the

595900892.55170173.24596071065.79

current

period

(1)

595900892.55170173.24596071065.79

Disposal

4. Closing 33157507. 31481228693. 439949809. 4746884. 36792452. 31695470. 32027570817.

balance 40 15 72 13 82 34 56

II.Accumulat

ed

amortizatio

n

1. Opening 7838254.2 19184357541. 137074359. 3832642. 28040736. 21826303. 19382969838.

balance 4 85 91 90 11 76 77

2. Increase

in the 5078308521.1 42334144.1 1875367.8 3398750.3 5126794678.2

676683.82201211.00

current 9 2 0 4 7

period

(1)5078308521.142334144.11875367.83398750.35126794678.2

676683.82201211.00

Provision 9 2 0 4 7

3. Decrease

in the

595900892.55170173.24596071065.79

current

period

(1)

595900892.55170173.24596071065.79

Disposal

4. Closing 8514938.0 23666765170. 179408504. 4033853. 29916103. 25054880. 23913693451.

balance 6 49 03 90 91 86 25

III.Provision

132Mango Excellent Media Co. Ltd. Annual Report 2023

for

impairment

1. Opening

balance

2. Increase

in the

current

period

(1)

Provision

3. Decrease

in the

current

period

(1)

Disposal

4. Closing

balance

VI.Carrying

value

1. Closing 24642569. 7814463522.6 260541305. 6876348.9 6640589.4 8113877366.3

713030.23

balance 34 6 69 1 8 1

2. Opening 25319253. 6625457646.8 301464314. 8751716.7 6094506.8 6968001679.0

914241.23

balance 16 4 26 1 8 8

Proportion of intangible assets generated from the Company’s internal research and development to the balance of intangible assets at

the end of the period: 0.90%.

17. Long-term prepaid expenses

In RMB

Increase in the

Item Opening balance Amortization Other decrease Closing balance

current period

Projects of

rebuilding and

88341119.2212626857.5631314872.7869653104.00

decoration for rented

buildings

Total 88341119.22 12626857.56 31314872.78 69653104.00

Other information:

18. Deferred tax assets / deferred tax liabilities

(1) Deferred tax assets not offset

In RMB

Closing balance Opening balance

Item Deductible temporary Deductible temporary

Deferred tax assets Deferred tax assets

difference difference

Provision for

355596582.4654294735.45

impairment of assets

Unrealized profits on

93422322.4014013348.36

intragroup transactions

Intangible assets 10377237346.29 1556627584.71

Lease liabilities 204140260.49 38732376.27 80860974.39 15747631.58

Deferred income 37912257.53 5886838.63

Income from equity

6855915.191028387.28

investment

Provisions 3156100.00 473415.00

Total 11078320784.36 1671056685.70 80860974.39 15747631.58

133Mango Excellent Media Co. Ltd. Annual Report 2023

(2) Deferred tax liabilities not offset

In RMB

Closing balance Opening balance

Item Deductible temporary Deductible temporary

Deferred tax assets Deferred tax assets

difference difference

Right-of-use assets 228587413.61 42360807.51 73622532.30 15968277.36

Total 228587413.61 42360807.51 73622532.30 15968277.36

(3) Deferred tax assets and deferred tax liabilities presented on a netting basis

In RMB

Closing offset amount Closing balance of Opening offset amount Opening balance of

Item of deferred tax assets deferred tax assets or of deferred tax assets deferred tax assets or

and liabilities liabilities after offset and liabilities liabilities after offset

Deferred tax assets 42266467.32 1628790218.38 15740849.25 6782.33

Deferred tax liabilities 42266467.32 94340.19 15740849.25 227428.11

(4) Details of unrecognized deferred tax assets

In RMB

Item Closing balance Opening balance

Deductible temporary

364843876.01 9370255527.90 differences

Deductible losses 1049348341.90 837495510.21

Total 1414192217.91 10207751038.11

(5) Deductible losses for which no deferred tax assets are recognized will expire in the following year

In RMB

Year Closing balance Opening balance Remark

202333995918.61

2024383268.85383268.85

202539485265.4139666144.36

2026349142170.13352766517.40

2027393914930.28410683660.99

2028266422707.23

Total 1049348341.90 837495510.21

Other information:

19. Other non-current assets:

In RMB

Closing balance Opening balance

Item Provision for Provision for

Book balance Carrying value Book balance Carrying value

impairment impairment

Prepayments for

equipment and 1257003.74 1257003.74 35450007.57 35450007.57

construction projects

Total 1257003.74 1257003.74 35450007.57 35450007.57

Other information:

20. Assets subject to restrictions on ownership or right of use

In RMB

134Mango Excellent Media Co. Ltd. Annual Report 2023

End of the current period Beginning of the current period

Item Type of Reason of Type of Reason of

Book balance Carrying value Book balance Carrying value

restriction restriction restriction restriction

Freeze due Freeze due

to to

litigation litigation

security security

Cash and deposit deposit

Freeze and Freeze and

bank 14891913.17 14891913.17 and third- 24363026.41 24363026.41 and third-

security security

balances party party

platform platform

account account

security security

deposit deposit

Endorsed Endorsed

or or

Notes Endorsement discounted Endorsement discounted

34920000.0034920000.001024395661.371024395661.37

receivable and discount but yet not and discount but yet not

matured matured

bills bills

Total 49811913.17 49811913.17 1048758687.78 1048758687.78

Other information:

21. Short-term borrowings

(1) Category of short-term borrowings

In RMB

Item Closing balance Opening balance

Pledge borrowings 1018145573.43

Credit borrowings - principal 33731500.00 39731500.00

Credit borrowings - interest 49825.60 55403.37

Total 33781325.60 1057932476.80

Description for categories of short-term borrowings:

The pledged loans are banker’s acceptance bills and commercial acceptance bills of small commercial banks that have already been

discounted yet not derecognized at the end of the period.

22. Notes payable

In RMB

Category Closing balance Opening balance

Commercial acceptance bills 121027286.03 403807532.47

Banker’s acceptance bills 585287605.99 1237194311.78

Letters of credit 1008178382.30

Total 1714493274.32 1641001844.25

Total notes payable matured but not paid yet is RMB0.00 at the end of the period.

23. Accounts payable

(1) Details of accounts payable

In RMB

Item Closing balance Opening balance

Payments for purchase of engineering

5211653685.684929885871.44

equipment and goods

Total 5211653685.68 4929885871.44

135Mango Excellent Media Co. Ltd. Annual Report 2023

(2) Significant accounts payable aged over one year or overdue

In RMB

Reason for failure to be repaid or carried

Item Closing balance

forward

The first 50395471.69 Not yet due for settlement

The second 49410599.97 Not yet due for settlement

The third 47077269.85 Not yet due for settlement

The fourth 40892106.88 Not yet due for settlement

The fifth 38679245.29 Not yet due for settlement

The sixth 30159886.01 Not yet due for settlement

Total 256614579.69

Other information:

24. Other payables

In RMB

Item Closing balance Opening balance

Dividends payable 310000000.00

Other payables 118868606.40 198775724.99

Total 118868606.40 508775724.99

(1) Dividends payable

In RMB

Item Closing balance Opening balance

Dividends on ordinary shares 310000000.00

Total 310000000.00

Other information including the reason for failure to pay any material dividends overdue for more than one year:

(2) Other payables

1) Other payables by nature

In RMB

Item Closing balance Opening balance

Receivables and payables 89952391.96 167244129.47

Security deposit 28916214.44 31531595.52

Total 118868606.40 198775724.99

2) Other significant payables aged over one year

In RMB

Reason for failure to be repaid or carried

Item Closing balance

forward

The first 3793780.40 Not yet due for settlement

Total 3793780.40

3) Top 5 other payables in terms of closing balance categorized by counterparty

Other information:

136Mango Excellent Media Co. Ltd. Annual Report 2023

25. Contract liabilities

In RMB

Item Closing balance Opening balance

Payment for goods 326891199.04 346714804.82

Investments in films and TV dramas co-

55498792.7184187513.92

production

Membership service 840992823.82 665056892.14

Total 1223382815.57 1095959210.88

Material contract liabilities aged more than one year:

In RMB

Reason for failure to be repaid or carried

Item Closing balance

forward

Significant changes in the carrying value during the Reporting Period and reasons therefor:

In RMB

Item Changes Reason for changes

26. Employee benefits payable

(1) Details of employee benefits payable

In RMB

Item Opening balance Increase Decrease Closing balance

I. Short-term benefits 1018804563.91 1662551293.03 1549404332.02 1131951524.92

II. Post-employment

benefits-defined benefit 478800.10 44223376.30 43780003.77 922172.63

plan

III. Termination benefits 510226.39 15031762.77 15217424.98 324564.18

Total 1019793590.40 1721806432.10 1608401760.77 1133198261.73

(2) Short-term benefits

In RMB

Item Opening balance Increase Decrease Closing balance

1. Wages or salaries

bonuses allowances and 1016144756.03 1540798266.80 1427775301.67 1129167721.16

subsidies

2. Employee welfare

323060.0053125778.8053141539.80307299.00

expenses

3. Social security

250945.4329336605.0629306211.18281339.31

contributions

Incl.: Medical

233096.5424628570.3924611918.67249748.26

insurance

Work-related

11624.051623353.141621668.5213308.67

injuries insurance

Maternity

6224.84257214.62257143.376296.09

insurance

Other commercial

2827466.912815480.6211986.29

insurance

4. Housing provident

350457.0032548777.0032684183.00215051.00

fund

5. Union running costs

and employee education 1735345.45 6741865.37 6497096.37 1980114.45

cost

Total 1018804563.91 1662551293.03 1549404332.02 1131951524.92

(3) Defined benefit plan

In RMB

137Mango Excellent Media Co. Ltd. Annual Report 2023

Item Opening balance Increase Decrease Closing balance

1. Basic pensions 463529.93 40960951.91 40523494.33 900987.51

2. Unemployment

15270.173262424.393256509.4421185.12

insurance

Total 478800.10 44223376.30 43780003.77 922172.63

Other information:

27. Taxes payable

In RMB

Item Closing balance Opening balance

VAT 11408321.49 13344691.29

Enterprise income tax 8206297.94 61255.01

Personal Income Tax 40619583.31 36982910.73

Urban maintenance and construction tax 198770.35 421370.61

Stamp duty 2521617.23 1985402.35

Education surcharges 141978.81 327072.20

Development fee for cultural undertakings 205222676.00 152478937.95

Other taxes 2838963.45 2866410.18

Total 271158208.58 208468050.32

Other information:

28. Non-current liabilities due within one years

In RMB

Item Closing balance Opening balance

Lease liabilities due within 1 year 63380220.77 52927194.87

Total 63380220.77 52927194.87

Other information:

29. Other current liabilities

In RMB

Item Closing balance Opening balance

Output tax to be transferred 55645321.21 81629189.75

Notes endorsed but not derecognized [note] 34920000.00

Others 26507026.70

Total 90565321.21 108136216.45

Changes in short-term bonds payable:

In RMB

Interest Closi

Amortization Repayment

Name of Coupon Term of Issue Opening Issue for accrued ng Default

Par value Issue date of premiums for the

bond rate bond amount balance the period based on balan or not

or discounts period

par value ce

Total

Other information:

[Note] Notes endorsed but not derecognized are banker’s acceptance bills of small-sized commercial banks that have been endorsed

but not derecognize at the end of the Reporting Period.

30. Lease liabilities

In RMB

Item Closing balance Opening balance

Housing and building rental payments 163907504.63 148555695.29

138Mango Excellent Media Co. Ltd. Annual Report 2023

Unrecognized financing expenses -12098501.29 -10211590.57

Total 151809003.34 138344104.72

Other information:

31. Provisions

In RMB

Item Closing balance Opening balance Reason

Estimated compensation for

Pending litigation 3156100.00 9038875.00

pending litigation

Total 3156100.00 9038875.00

Other information including important assumptions and estimation explanations related to significant estimated liabilities:

32. Deferred income

In RMB

Item Opening balance Increase Decrease Closing balance Reason

Government grants

Governmental grants 42775997.77 24310000.00 23878281.29 43207716.48 related to assets and

income

Total 42775997.77 24310000.00 23878281.29 43207716.48 --

Other information:

33. Share capital

In RMB

Increase or decrease (+-)

Opening balance Capitalization of Closing balance

New shares Bonus shares Others Sub-total

capital reserve

Total shares 1870720815.00 1870720815.00

Other information:

34. Capital reserve

In RMB

Item Opening balance Increase Decrease Closing balance

Capital premium (Share

9639945659.79834795100.008805150559.79

capital premium)

Other capital reserve 6264437.84 6264437.84

Total 9646210097.63 834795100.00 8811414997.63

Other information including changes and reasons therefor:

The decrease in the current capital premium (equity premium) was caused by acquisition of 100% shares of Golden Eagle Cartoon

from the parent company Mango Media. See Note VII.54 and Note IX.1 for details.

35. Other comprehensive income

In RMB

Amount in the current period

Less: Amount Less: Amount

Amount included in included in Less: Attributable Attributable to

Opening Closing

Item before income other other Income to the parent minority

balance balance

tax for the comprehensive comprehensive tax company interests after

current period income for the income for the expenses after tax tax

prior periods prior periods

139Mango Excellent Media Co. Ltd. Annual Report 2023

and transferred and transferred

to the profit or to the retained

loss for the earnings for

current period the current

period

II. Other comprehensive

income that will be 157436.90 14621.32 14621.32 172058.22

reclassified to profit or loss

Translation differences of

financial statements

157436.9014621.3214621.32172058.22

denominated in foreign

currencies

Total of other

157436.9014621.3214621.32172058.22

comprehensive income

Other information including adjustment of the effective part of the cash flow hedge gains and losses transferred to initially

recognized amount of hedged items:

36. Surplus reserve

In RMB

Item Opening balance Increase Decrease Closing balance

Statutory capital reserves 126108937.21 53513078.05 179622015.26

Total 126108937.21 53513078.05 179622015.26

Descriptions of surplus reserve including changes for the current period and reasons therefor: Current increase of statutory capital

reserves is accrued based on 10% of net profits of parent company.

37. Undistributed profit

In RMB

Item Amount in the current period Amount in the prior period

Undistributed profits at the end of the prior period

7306930115.635746281439.57

before adjustment

Aggregate adjustment to the opening balance of

undistributed profits (increase expressed with “+” 64564009.79 345788313.03

and decrease expressed with “-”)

Beginning balance of undistributed profits after

7371494125.426092069752.60

adjustment

Add: Net profit attributable to owners of the parent

3555705558.901864245432.69

company for the period

Less: Appropriation to statutory surplus reserve 53513078.05 21083553.92

Dividends payable for ordinary shares 243193705.95 563737505.95

Closing balance of undistributed profits 10630492900.32 7371494125.42

Details of adjustments to the opening balance of undistributed profits:

1) Effect on the opening balance of undistributed profits due to retrospective adjustment pursuant to the Accounting Standards

for Business Enterprises and related new provisions: Nil.

2) Effect on the opening balance of undistributed profits due to changes in accounting policies: RMB-220645.78.

3) Effect on the opening balance of undistributed profits due to the correction of material accounting errors: Nil.

4) Effect on the opening balance of undistributed profits due to changes in the scope of consolidation resulting from business

merger involving entities under common control: RMB64784655.57.

5) Effect on the opening balance of undistributed profits due to other adjustments: Nil.

38. Operating revenues and operating costs

In RMB

Amount in the current period Amount in the prior period

Item

Revenue Cost Revenue Cost

Primary business 14593731803.65 9764976782.77 13960815498.38 9194378666.53

Other business 34284498.19 38030112.17 15958536.54 13701456.54

Total 14628016301.84 9803006894.94 13976774034.92 9208080123.07

Whether the lower of the audited net profit before and after deduction of non-recurring gain or loss is negative

140Mango Excellent Media Co. Ltd. Annual Report 2023

□Yes √ No

Breakdown of operating revenues and operating costs:

In RMB

Segment 1 Segment 2 Total

Category of

Operating Operating Operating Operating

contract Operating revenue Operating cost Operating revenue Operating cost

revenue cost revenue cost

By segment 14607812188.73 9788565453.99 14607812188.73 9788565453.99

Incl.:

Mango TV

Internet video 10614030327.62 6229223213.61 10614030327.62 6229223213.61

business

New media

interactive

entertainment

content 1149941038.24 855899278.24 1149941038.24 855899278.24

production

and operation

Content e-

commerce 2822529201.38 2682738552.41 2822529201.38 2682738552.41

Others 21311621.49 20704409.73 21311621.49 20704409.73

By operating

region 14607812188.73 9788565453.99 14607812188.73 9788565453.99

Incl.:

Hunan 3537951569.61 2368845667.28 3537951569.61 2368845667.28

Others 11069860619.12 7419719786.71 11069860619.12 7419719786.71

By market or

customer

type

Incl.:

By contract

type

Incl.:

By transfer

time of goods 14607812188.73 9788565453.99 14607812188.73 9788565453.99

Incl.:

Revenue

recognized at

a point in 7322021341.01 5480672112.18 7330400480.95 5480672112.18

time

Revenue

recognized 7285790847.72 4307893341.81 6635020319.10 4307893341.81

over time

By term of

contract

Incl.:

By sales

channel

Incl.:

Total

Information related to performance obligations:

Type of

Amount that

Time for Nature of goods warranty

Whether the the Company is

satisfaction of Material terms to be provided by the

Item Company is a expected to

performance of payment transferred by Company and

primary obligor return to the

obligation the Company related

customer

obligation

Other information:

Information related to the transaction price allocated to the outstanding performance obligations:

The revenue corresponding to the performance obligations for which the contract has been signed but has not yet been performed or

fully performed at the end of the Reporting Period was RMB1167884022.86 of which RMB[ ] is expected to be recognized as

revenue in [ ] RMB[ ] is expected to be recognized as revenue in [ ] and RMB[ ] is expected to be recognized as revenue in [ ].Information related to variable consideration under the contract:

Material changes to contract or material adjustment to transaction price:

In RMB

Item Method of accounting treatment Effect on revenues

Other information:

141Mango Excellent Media Co. Ltd. Annual Report 2023

39. Taxes and surcharges

In RMB

Item Amount in the current period Amount in the prior period

Consumption tax 4609149.68 182749.05

Urban maintenance and construction tax 15971815.04 14198586.07

Education surcharges 11426041.49 10195202.13

Property tax 848676.35 728127.45

Land use rights 317111.64 304072.27

Vehicle and vessel tax 52190.00 44743.15

Stamp duty 4172011.31 1613045.10

Cultural program expenditure 62712654.64 63689854.06

Others 5567.68 9459.17

Total 100115217.83 90965838.45

Other information:

40. Administrative expenses

In RMB

Item Amount in the current period Amount in the prior period

Employee’s benefits and labor costs 430604885.05 464190051.90

Depreciation and amortization 60923666.46 60547830.40

Legal costs 10709601.29 9512505.95

Office and administrative service 71238413.34 69184998.74

Agency fees 17522886.67 14401232.02

Business entertainment expenses 2661030.35 1936702.25

Others 18348524.17 26728696.80

Total 612009007.33 646502018.06

Other information:

41. Selling expenses

In RMB

Item Amount in the current period Amount in the prior period

Employee’s benefits and labor costs 576127812.59 639343477.94

Depreciation and amortization 8466298.99 11677591.99

Advertising costs 1096031531.92 1114422163.05

Expenses for Internet access cooperation 34925253.55 35562482.84

Office and travel expenses 26303720.55 15828308.40

Program production costs 19085890.68 9674917.32

Channel sales and operations development

474478818.33390480869.67

expenses

Others 24645947.36 27834517.77

Total 2260065273.97 2244824328.98

Other information:

42. Research and development expenses

In RMB

Item Amount in the current period Amount in the prior period

Employee’s benefits and labor costs 132809324.23 78469189.04

142Mango Excellent Media Co. Ltd. Annual Report 2023

Depreciation and amortization 14284930.13 15548111.63

Technical service fees 112770214.15 140783980.32

Others 18863776.27 22805961.42

Total 278728244.78 257607242.41

Other information:

43. Financial expenses

In RMB

Item Amount in the current period Amount in the prior period

Loan interest expenses 1937719.63 2022222.95

Expenditure from interest of bills

14480442.108626569.06

discounted not derecognized

Less: Interest income 208888419.38 200121015.01

Service charge 43051724.38 33125167.59

Interest expenses from lease liabilities 6650512.63 9493105.50

Foreign exchange gains and losses -4899373.45 4409147.02

Total -147667394.09 -142444802.89

Other information:

44. Other income

In RMB

Source of other income Amount in the current period Amount in the prior period

Government grants related to assets 16732948.07 16648854.52

Government grants related to income 69609403.38 35466135.70

Refund of service fees of withholding

3820990.585240976.47

personal income tax

Additional VAT deduction 32761165.89 70107934.93

Total 122924507.92 127463901.62

45. Investment income

In RMB

Item Amount in the current period Amount in the prior period

Income from long-term equity investments under equity

-4123864.73-2576746.69

method

Proceeds from debt restructuring 3000000.00 27219600.00

Interest expenses on derecognized discount notes -18449114.52 -10956907.95

Income from wealth management products 92809746.83 119377916.99

Total 73236767.58 133063862.35

Other information:

46. Impairment losses of credit

In RMB

Item Amount in the current period Amount in the prior period

Losses from impairment of notes receivable 23151.77 -23151.77

Bad debt losses of accounts receivable -66160439.05 -117264188.06

Bad debt losses of other receivables -1399168.29 -1182612.49

Total -67536455.57 -118469952.32

Other information:

143Mango Excellent Media Co. Ltd. Annual Report 2023

47. Impairment losses of assets

In RMB

Item Amount in the current period Amount in the prior period

I. Loss from inventory depreciation and loss from

-16104442.05-20689008.13

impairment of contract performance cost

II. Loss from impairment of long-term equity investment -17181905.95

XI. Impairment losses of contractual assets 3485179.56 -3213575.08

XII. Others -19905321.52 -8659735.00

Total -32524584.01 -49744224.16

Other information:

48. Income from disposal of assets

In RMB

Source of income from disposal of assets Amount in the current period Amount in the prior period

Income from disposal of long-term assets 1171623.19 891438.70

49. Non-operating revenue

In RMB

Amount included in the non-

Item Amount in the current period Amount in the prior period recurring gain or loss for the

current period

Payment not to be made 2956600.70 5290663.40 2956600.70

Income from safeguarding legal

25508083.3837208566.6725508083.38

rights

Others 7067319.74 3129220.30 7067319.74

Total 35532003.82 45628450.37 35532003.82

Other information:

50. Non-operating expenses

In RMB

Amount in the Amount included in the non-recurring gain or

Item Amount in the prior period

current period loss for the current period

Outbound donations 447013.55 8291.60 447013.55

Losses from damage and

51994.5484224.8051994.54

retirement of non-current assets

Compensation expenditures 3179097.37 4086213.49 3179097.37

Others 327778.83 311651.85 327778.83

Total 4005884.29 4490381.74 4005884.29

Other information:

51. Income tax expenses

(1) Table of income tax expenses

In RMB

Item Amount in the current period Amount in the prior period

Current income tax expenses 8146737.30 76071.59

Deferred income tax expenses -1628916523.97

Total -1620769786.67 76071.59

144Mango Excellent Media Co. Ltd. Annual Report 2023

(2) Reconciliation of income tax expenses to the accounting profit

In RMB

Item Amount in the current period

Total profit 1850557035.72

Income tax expense calculated based on statutory/applicable tax rate 462639258.93

Effect of different tax rates of subsidiaries operating in other jurisdictions -512820365.96

Effect of adjustment on income tax for the prior period 84246.60

Effect of non-deductible cost expense and loss 115470.39

Effect of utilizing deductible loss not recognized for deferred tax assets for the prior period -1780002.87

Effect of deductible temporary difference or deductible loss not recognized for deferred tax

59908130.21

assets for the current period

Other -1628916523.97

Income tax expense -1620769786.67

Other information: Other deferred income tax expenses recognized as temporary differences due to the expiration of tax exemptions

for the Company.

52. Items of the cash flow statement

(1) Cash flows relating to operating activities

Other cash receipts relating to operating activities:

In RMB

Item Amount in the current period Amount in the prior period

Governmental grants 86774070.16 49373216.18

Interest income 208888917.13 200121015.01

Income from safeguarding legal rights 25508083.38 37208566.67

Payment for goods collected for others 57918097.18 134507004.72

Receivables and payables and others 15018872.71 26765188.10

Total 394108.040.56 447974990.68

Descriptions of other cash receipts relating to operating activities:

Other cash payments relating to operating activities

In RMB

Item Amount in the current period Amount in the prior period

Payments of various expenses 1794393196.61 1640256969.08

Band service charges 43052222.13 33125167.59

Payment for goods made for others 57918097.18 134507004.72

Accounts current and others 4471305.46 4396926.89

Total 1899834821.38 1812286068.28

Descriptions of other cash payments relating to operating activities:

(2) Cash flows relating to investing activities

Other cash receipts relating to investing activities:

In RMB

Item Amount in the current period Amount in the prior period

Redemption of bank wealth management

7121000000.0014099290618.76

products

Income from wealth management products 98275772.73 119377916.99

Total 7219275772.73 14218668535.75

Material cash receipts relating to investing activities:

In RMB

Item Amount in the current period Amount in the prior period

Descriptions of other cash receipts relating to investing activities:

Other cash payments relating to investing activities

145Mango Excellent Media Co. Ltd. Annual Report 2023

In RMB

Item Amount in the current period Amount in the prior period

Purchase of wealth management products 5478000000.00 13371990000.00

Total 5478000000.00 13371990000.00

Material cash payments relating to investing activities:

In RMB

Item Amount in the current period Amount in the prior period

Descriptions of other cash payments relating to investing activities:

(3) Cash flows relating to financing activities

Other cash receipts relating to financing activities:

In RMB

Item Amount in the current period Amount in the prior period

Descriptions of other cash receipts relating to financing activities:

Other cash payments relating to financing activities

In RMB

Item Amount in the current period Amount in the prior period

Lease payment 82238041.16 67026458.20

Repayment of intergroup loans 64000000.00 29693346.30

Total 146238041.16 96719804.50

Descriptions of other cash payments relating to financing activities:

Repayment of intergroup loans involves the intergroup loans obtained by Golden Eagle Cartoon before it was merged into the Company

which were repaid in full before it was merged into the Company.Changes in liabilities arising from financing activities:

□Applicable □N/A

In RMB

Increase in the current period Decrease in the current period

Closing

Item Opening balance Monetary Non-monetary Monetary Non-monetary

balance

change change change change

Short-term

1057932476.80679622361.64296562773.001407210739.8433781325.60

borrowings

Lease

liabilities

(including

191271299.59106155965.6882238041.16215189224.11

those due

within one

year)

Total 1249203776.39 679622361.64 106155965.68 378800814.16 1407210739.84 248970549.71

53. Supplementary information to the cash flow statement

(1) Supplementary information to the cash flow statement

In RMB

Supplementary information Amount in the current period Amount in the prior period

1. Reconciliation of net profit to cash flow from operating

activities:

Net profit 3471326822.39 1805506310.07

Add: Provision for impairment losses of assets 100061039.58 168214176.48

Depreciation of fixed assets depletion of oil and gas assets

44086957.4841351798.47

depreciation of bearer biological assets

Depreciation of right-of-use assets 83840720.26 65495312.38

Amortization of intangible assets 5126794678.27 5009896316.63

Amortization of long-term prepaid expenses 31314872.78 31408448.81

Losses on disposal of fixed assets intangible assets and other

long-term assets (gains are indicated by “－”) -1171623.19 -891438.70

146Mango Excellent Media Co. Ltd. Annual Report 2023

Losses on retirement of fixed assets (gains are indicated by

“－”)51994.5484224.80

Income from changes in fair value (gains are indicated by “-”)

Financial expenses (gains are indicated by “－”) 18169300.91 24551044.53

Investment losses (gains are indicated by “－”) -73236767.58 -132976709.08

Decrease in deferred tax assets (increase is indicated by “－”) -1628783436.05 -6782.33

Increase in deferred tax liabilities (decrease is indicated by

“－”)-133087.92227428.11

Decrease in inventories (increase is indicated by “－”) -124721268.22 80414477.47

Decrease in receivables from operating activities (increase is

-258552482.21-1257620367.60

indicated by “－”)

Increase in payables from operating activities (decrease is

indicated by “－ 562070967.16 75204594.63 ”)

Others -6267345431.49 -5289055135.23

Net cash flows from operating activities 1083773256.71 621803699.44

2. Significant investing and financing activities that do not involve

cash receipts and payments:

Conversion of debt into capital

Convertible corporate bonds due within 1 year

Fixed assets under financing lease

3. Net changes in cash and cash equivalents:

Closing balance of cash 11867316344.43 10345319073.78

Less: opening balance of cash 10345319073.78 7534308169.53

Add: Closing balance of cash equivalents

Less: opening balance of cash equivalents

Net increase in cash and cash equivalents 1521997270.65 2811010904.25

(2) Net cash paid for acquisition of subsidiaries in the current period

In RMB

Amount

Cash or cash equivalents paid in connection with business

834795100.00

mergers in the current period

Incl.:

Golden Eagle Cartoon 834795100.00

Incl.:

Incl.:

Net cash paid for acquisition of subsidiaries 834795100.00

Other information:

(3) Composition of cash and cash equivalents

In RMB

Item Closing balance Opening balance

I. Cash 11867316344.43 10345319073.78

Incl.: Cash on hand 34083.85 88009.61

Bank deposit that can be paid at any

11843692572.7710322905867.30

time

Other monetary capital that can be paid

23589687.8122325196.87

at any time

III. Closing balance of cash and cash

11867316344.4310345319073.78

equivalents

Incl.: Restricted cash and cash equivalents

held by the parent company or other 1490065232.16 2105457389.75

subsidiaries in the Group

147Mango Excellent Media Co. Ltd. Annual Report 2023

(4) Amounts whose use is restricted but which are still presented as cash and cash equivalents

In RMB

Reason for presentation as

Item Amount in the current period Amount in the prior period

cash and cash equivalents

Amount held in the account of Be subject to limited usage but

1490065232.162105457389.75

offering proceeds can be spent at any time

Total 1490065232.16 2105457389.75

54. Notes to the statement of changes in owners’ equity

Titles of items under “others” whose balance at the end of the prior year was adjusted and amount of adjustment:

On July 25 2023 at the 17th meeting of the 4th Board of Directors and the 15th meeting of the 4th Board of Directors the Proposal

Regarding Acquisition of 100% Shares of Hunan Golden Eagle Cartoon Media Co. Ltd. by Cash and Related-party Transaction was

considered and adopted which provides that pursuant to the Asset Valuation Report on the Total Interests Held by the Shareholders

of Hunan Golden Eagle Cartoon Media Co. Ltd. Involved in the Proposed Transfer by Mango Media Co. Ltd. of 100% Shares of

Hunan Golden Eagle Cartoon Media Co. Ltd. (Vacation International Ping Bao Zi (2023) No. 1243) issued by Vacation (Beijing)

International Asset Valuation Co. Ltd. as of December 31 2022 the reference date for the valuation the value of the total interests

held by the shareholders of Golden Eagle Cartoon was RMB834795100; based on such result of valuation the parties to the transaction

agreed that the transaction price for 100% shares of Golden Eagle Cartoon was RMB834795100; the Company would pay

RMB834795100 using its self-owned funds to acquire 100% shares of Golden Eagle Cartoon. In October 2023 Golden Eagle

Cartoon completed the relevant alteration filing procedures with the administration for industry and commerce the Company acquired

100% shares of Golden Eagle Cartoon and Golden Eagle Cartoon was included in the scope of consolidation of the Company.

Both the Company and Golden Eagle Cartoon are controlled by Mango Media before and after this business merger and such

control is not temporary so the acquisition by the Company of Golden Eagle Cartoon constitute a business merger involving entities

not under common control. Pursuant to the Accounting Standards for Business Enterprises No. 2 “Long-term Equity Investment” and