China Bright Culture : ANNOUNCEMENT IN RESPECT OF PUBLICATION OF UNAUDITED MANAGEMENT ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

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China Bright Culture Group

煜盛文化集團*

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1859)

ANNOUNCEMENT IN RESPECT OF PUBLICATION OF UNAUDITED

MANAGEMENT ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

Reference is made to the announcement of China Bright Culture Group (the "Company", together with its subsidiaries and consolidated affiliated entities, the "Group") dated 31 March 2021 in relation to, among others, delay in publication of 2020 annual results (the "2020 Annual Results").

The Company failed to publish the announcement of the 2020 Annual Results within 3 months after the end of the financial year of the Company (i.e. on or before 31 March 2021). The board of directors of the company (the "Board") has been actively communicating with the auditor of the Company (the "Auditor") regarding the audit work on the 2020 Annual Results.

In order to keep the shareholders of the Company (the "Shareholders") and the public informed of the Group's financial performance and position, the Board wishes to set forth below the preliminary unaudited financial information of the Group.

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS for the year ended 31 December 2020

(Expressed in Renminbi ("RMB"))

	2020		2019
	RMB'000	RMB'000
Revenue	505,848		475,566
Cost of sales	(228,154)	(208,385)
Gross profit	277,694		267,181
Other net income	1,392		1,636
Selling and marketing expenses	(16,009)	(9,581)
General and administrative expenses	(73,314)	(59,029)
Impairment losses on trade and other receivables	(141,703)	(4,513)
Profit from operations	48,060		195,694
Net finance expenses	(21,792)	(9,140)
Fair value changes on investments measured at fair value through profit
or loss	3,754		-
Profit before income tax	30,022		186,554
Income tax	(25,260)	(38,686)
Profit for the year	4,762		147,868
Attributable to:
Equity shareholders of the Company	4,762		147,868
Non-controlling interests	-	-
Profit for the year	4,762		147,868
Earnings per share
Basic and diluted (RMB)	0.003		0.131

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

for the year ended 31 December 2020 (Expressed in RMB)

	2020			2019
	RMB'000	RMB'000
Profit for the year	4,762			147,868
Other comprehensive income for the year (after tax and
reclassification adjustments)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation into presentation currency of the
Group	(35,073)	1,997
Other comprehensive income for the year	(35,073)	1,997
Total comprehensive income for the year	(30,311)	149,865
Attributable to:
Equity shareholders of the Company	(30,311)	149,865
Non-controlling interests	-		-
Total comprehensive income for the year	(30,311)	149,865

3

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2020

(Expressed in RMB)

	31 December	31 December
	2020		2019
	RMB'000	RMB'000
Non-current assets
Property, plant and equipment	796		1,427
Right-of-use assets	7,118		16,928
Deferred tax assets	40,251		8,512
	48,165	26,867
Current assets
Short-term investments	437,659		-
Program copyrights	362,461		356,103
Trade receivables	701,535		491,254
Prepayments and other receivables	64,609		23,257
Restricted bank deposit	1,220		34,881
Cash and cash equivalents	1,292		8,982
	1,568,776	914,477
Current liabilities
Bank loans and other borrowings	36,000		111,000
Contract liabilities	22,745		16,506
Trade payables	28,439		33,724
Accruals and other payables	105,042		144,914
Lease liabilities	1,903		4,392
Current taxation	98,991		46,108
	293,120	356,644
Net current assets	1,275,656		557,833
Total assets less current liabilities	1,323,821		584,700

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	31 December	31 December
	2020		2019
	RMB'000	RMB'000
Non-current liabilities
Lease liabilities	5,312		12,416
Deferred Income	630		-
Other non-current liabilities	10,000		-
	15,942	12,416
Net assets	1,307,879		572,284
Equity
Share capital	73		45
Reserves	1,307,806		572,239
Equity attributable to the equity shareholders of the Company	1,307,879		572,284
TOTAL EQUITY	1,307,879		572,284

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In 2020, revenue of the Group amounted to RMB505.8 million, representing an increase of 6.4% compared with 2019; gross profit amounted to RMB277.7 million, representing an increase of 3.9% compared with 2019. The overall business scale and effectiveness maintained a growing trend. Due to an increase in the collection cycle of accounts receivable under the impact of the pandemic in the PRC in 2020, a provision for impairment of accounts receivable of RMB141.7 million was made in 2020, representing a significant increase compared with 2019. With the improvement in the pandemic situation and the recovery of domestic economy, the management expects to gradually recover accounts receivable in 2021.

The Board wishes to emphasize that the preliminary unaudited financial information set out above is extracted directly from the latest unaudited management accounts of the Group and subject to, among others, further review by the Company and any potential adjustments and has not been reviewed or audited by the Auditor. The preliminary unaudited financial information above is based on information currently available for the audit committee of the Board and the Company. The Board cannot guarantee the preliminary unaudited financial information set out above truly reflects the financial performance and position of the Group and such information might be misleading if any potential adjustments have not been taken into account. Shareholders and potential investors should exercise extreme caution when considering the preliminary unaudited financial information disclosed above and when dealing in the shares of the Company.

CONTINUED SUSPENSION OF TRADING

Trading in the shares of the Company has been suspended on the Stock Exchange with effect from 9:00 a.m. on 1 April 2021 until the Company publishes the announcement in relation to the 2020 Annual Results.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Shares of the Company.

By order of the Board of

China Bright Culture Group

LIU Mu

Chairman

Beijing, the PRC, 15 April 2021

As at the date of this announcement, executive Directors are Mr. LIU Mu and Mr. XIA Rui; and independent non-executive Directors are Ms. RAN Hua, Mr. ZHANG Yiwu, Mr. YANG Chengjia and Ms. YAO Li.

• for identification purposes only

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