Simei Media (002712.SZ) released its 2024 semi-annual performance forecast on July 9th, with a net income attributable to shareholders of the listed company of 0.9 million yuan-1.3 million yuan, a year-on-year decrease of 91.06% -87.09%; after deducting non-recurring gains and losses, net profit attributable to shareholders of the listed company is 0.18 million yuan-0.25 million yuan, a year-on-year decrease of 96.90%-95.69%; basic earnings per share are profitable at 0.0017 yuan/share-0.0024 yuan/share.
The main reasons for the company's year-on-year decline in performance in the first half of 2024 are as follows: 1. Digital copyright operations and service business were impacted. First, the rapid growth of short dramas in the market changed users' reading habits, reducing their attention and use of traditional reading methods such as novels, and novel distributors were more willing to undertake short drama business, resulting in a large-cap decline in novels. Second, the market content copyright resources tilted towards head platforms, causing the loss of head authors and a reduction in the production of explosive and high-quality novels.
According to the announcement of the Ministry of Finance and the State Administration of Taxation on clarifying the policies of value-added tax exemption and reduction for small-scale taxpayers (No. 1 of 2023), in 2023, the company can enjoy the preferential tax policy of adding 5% to offset the taxable amount based on the current deductible input tax amount. The policy expires in 2024 and affects the net income attributable to shareholders of the listed company.