Zhebao Digital Culture Group Co., Ltd. (stock code: 600633.SH, abbreviation: Zheshu Culture) was born out of China’s * Zhejiang News Media Group Co., Ltd., the first company listed on the media operating assets of the newspaper group, since 2011 Since its listing in 2016, it has focused on the development goal of becoming a “leader in the digital economy of Zhejiang and domestic media”, relying on the party’s newspaper resources and capital platform advantages, firmly seizing policy and industry development opportunities, and advancing system and mechanism reforms and industrial innovation and transformation. Successfully developed from a traditional newspaper company to an industrial group with Internet digital culture business as its core business. At present, its main business focuses on core businesses such as digital entertainment, big data, and digital sports, focusing on building digital culture and government digital economy empowerment platforms. The core sector focuses on the development of e-commerce services, artwork services and other cultural industry services and cultural industry investment businesses. At the same time, it concentrates resources to build a media-integrated business sector, vigorously serve the national media integration development strategy, and promote the company’s high-quality and sustainable development. The market is hailed as a benchmark for the innovation and transformation of the state-owned media industry.

        Since its listing, the company has strictly complied with the "Company Law", the "Securities Law" and other laws and regulations, and the "Articles of Association" and other regulations, with high-quality information disclosure as the core, strict risk management and control, prevention of insider trading, realizing the standardized development of the company, and full protection Investor rights. On March 1 this year, the newly revised "Securities Law of the People's Republic of China" was formally implemented, marking that the legalization of my country's securities market has entered a new stage of development, providing a better way to further improve the overall quality of listed companies and strengthen the protection of investors' rights and interests. And solid legal protection.

        The company will take the opportunity of implementing the new "Securities Law", continue to focus on protecting the rights and interests of investors, with the purpose of shareholder and social value creation, with awe, plan the path of development, and actively practice high-quality development under standardized operations , Work hard to create value for investors and the capital market.

        1. Realize industrial innovation and transformation, forge the core competitiveness of the enterprise, and create value for investors

        The company is an earlier listed company in the Internet digital culture industry. It makes full use of the first-mover advantage of the capital market. It has always maintained its continuous innovation ability in the reform of the system and mechanism and turned it into ample power. It has always been in strategic planning and industrial layout. To be at the forefront of the industry, adhere to the simultaneous development of endogenous development and external mergers and acquisitions, continue to improve the entire digital culture industry chain, and accelerate transformation and upgrading.

        After the successful backdoor listing in 2011, the company focused on the concept of "media control capital and capital to grow media" established before the listing, and made every effort to move towards the strategic goal of "Internet hub media group", and timely deployed Internet-related fields; in 2013, the company completed Initial non-public issuance, acquisition of Hangzhou Bianfeng and Shanghai Haofang, to build a digital entertainment platform; in 2016, the company completed the second non-public issuance, raising funds to build a "four-in-one" big data industry ecosystem; in 2017, the company implemented the first The second major asset reorganization, the divestiture of news media assets, focusing on the core Internet emerging industries that have good development prospects such as digital entertainment, big data, and digital sports, and have completed in-depth layouts. At the same time, they have participated in high-tech fields such as artificial intelligence through investment and incubation. Further improve the ecological chains of various industries; in 2018, the company completed a new round of three-year planning and further focused on the two major sectors of digital culture and government digital economy empowerment platforms, with the goal of becoming "the leader in the digital economy of Zhejiang and domestic media." The previous industrial reforms of Zheshu Culture have led the company on a good development track. While enhancing the value of the company, it also created value for all shareholders, safeguarded the rights and interests of shareholders, and achieved the unity of economic and social benefits.

        On April 28 this year, the company's 2019 annual report was officially announced. In 2019, the company achieved operating income of 2.827 billion yuan and net profit of 690 million yuan, of which the net profit attributable to shareholders of the listed company was 508 million yuan, and the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 279 million yuan. Revenue and net profit increased by 47% and 21% year-on-year, respectively. Net profit attributable to the parent and net profit deducted from the parent increased by 6% and 12% year-on-year, respectively. Behind the steadily improving data, the wisdom, courage and hard work of the company’s colleagues and partners are embodied in the company’s continuous business breakthroughs and continuous improvement of core competitiveness.

        During the reporting period, the company continued to consolidate its comprehensive competitiveness in the digital entertainment sector. As an important business segment of Zhejiang Digital Culture, Bianfeng Network maintained a strong growth momentum, firmly occupied the main market of the domestic Internet casual game industry and continued to expand, continuing to strongly support the company's stable and growth performance. The digital sports sector promotes the overall transformation, focusing on the e-sports business, and lays a solid foundation for further expanding the e-sports brand and expanding the upstream and downstream industrial chain. At the same time, the company continues to enhance its market development capabilities in the big data sector. Fuchun Cloud has made breakthroughs in the construction of Internet data centers, achieved profitability goals, and actively developed various value-added data services based on high-quality IDC services. Based on the previous "Internet + government service" actual combat experience, the company further sank to the construction of new city-level infrastructure, and deeply participated in the construction of smart cities such as "Hangzhou City Brain" and "Digital Zhejiang". At the same time, relying on the resource endowment and technology accumulation of the party newspaper group and listed companies, the company actively explores new paths for the development of media integration. "Media Cloud Platform", Zhejiang News Media Technology (Zhejiang) Co., Ltd., with a registered capital of RMB 500 million, made a new appearance.

        Looking back on the company’s journey after listing, the company’s goals, form, products, team, etc. have always been continuously adjusted, optimized and developed according to market conditions, but one thing has not changed, that is, the idea and determination to firmly embrace the Internet to promote its own industrial innovation has not changed. . Over the past eight years of exploration and practice, we have deeply realized that strong resource integration capabilities are the core competitiveness of the company’s development, unswerving innovation is the strong driving force for the company’s development, and sound capital operation is the “storage” of the company’s development. "Pool", conducting business in accordance with laws and regulations is the lifeline of the company's development. For more than eight years of struggling to move forward, there are not only strategic choices to follow the trend, but also tactical firmness to go against the trend. But with every leap and every step of expansion, the company is unswerving and struggling, with passion and hard work to run the "Zhebao Speed" of high-quality development.

        Since its listing for more than eight years, the company's performance has maintained steady growth, with a cumulative net profit of 5.233 billion yuan attributable to shareholders of listed companies, and continued to create value for investors. The company’s innovation and transformation has also been recognized by regulators and investors. Exchange leaders have successively conducted special investigations and guidance on the company’s mergers and acquisitions and reorganization, and fully affirmed the company’s experience and results in exploring and implementing industrial transformation; the company has been selected for corporate governance in Shanghai Stock Exchange. In 2016 and 2017, it was selected as one of the top 500 Asian brands in 2016 and 2017.

        2. Adhere to high standards of information disclosure, continue to distribute a high proportion of cash dividends, and share development results with investors

        1. Practicing the new securities law and insisting on high standards of information disclosure

At the beginning of the listing, the company established an investor communication system with information disclosure as the core and supplemented by multi-channel platforms such as the above-mentioned interactive, official website, telephone, Weibo, WeChat, etc., to continuously improve the actual effect of investor communication. During the implementation of major issues, the company strictly abides by relevant laws and regulations, proactively reports and communicates with securities regulatory authorities in advance, and makes timely and adequate disclosures of content that investors are concerned about. With its high-standard information disclosure work, the company has been rated A for information disclosure by the Shanghai Stock Exchange for five consecutive years.

        The newly revised "Securities Law" added special chapters on "Information Disclosure" and "Investor Protection" to further improve the information disclosure supervision system, standardize the specific content of investor protection, and increase penalties for violations of securities supervision laws. To further improve the overall quality of listed companies and strengthen the protection of investors' rights and interests, a more complete and solid legal guarantee is provided. Focusing on the newly revised Securities Law, the company will continue to focus on protecting the rights and interests of investors, adhere to high standards of information disclosure, ensure the timeliness and fairness of information disclosure, and ensure that the information disclosed is true, accurate, complete, and concise Clear, easy to understand, and safeguard investors' right to know.

        2. Improve communication channels and build a bridge for investor relations

        In recent years, affected by the macroeconomic environment at home and abroad, the overall A-share market has declined. In order to stabilize the company’s equity structure and maintain its market image, the company has stepped up its efforts to carry out investor relations management, arranged multiple visits to Beijing, Shanghai, Guangzhou, Shenzhen and other places to communicate face-to-face with investors, and timely convey the company’s business performance, institutional innovation, industrial structure optimization and adjustment, etc. Information, enhance investor interaction, and increase market recognition of the company. After regular reports and major issues are released, the company organizes performance briefings in a timely manner. The chairman, executives, and heads of relevant subsidiaries face-to-face with industry researchers and investors, exchanges the company’s development strategy and operating conditions in various aspects, and participates in the securities supervision The department’s online collective reception day for investors of listed companies in its jurisdiction has received more than 2,000 investors since its listing.

        In daily investor exchanges, the company actively and conscientiously responded through SSE E interactive platform, telephone, WeChat official account and other channels, from mergers and acquisitions, non-public issuance, to daily operations and the operation of the three meetings, and timely and adequate communication was established. Good investor interaction relations have better safeguarded investors' right to know.

       The company actively participates in activities related to investor protection of listed company associations at all levels, actively assumes corresponding social responsibilities, and strives to contribute to the continuous and healthy development of the capital market. In December 2014, the company was selected as the first professional investor relations management committee and cultural media industry committee of the Shanghai Association. In 2014 and 2015, the company was selected as the "Most Investor Respected Listed Company" by the China Association of Listed Companies for two consecutive years. "Top 100", in September 2018, the company was once again elected to the Second Investor Relations Management Professional Committee of the Shanghai Association and served as the vice chairman unit. In 2019, the company was elected as the vice chairman unit of the fifth council of the Zhejiang Association of Listed Companies , Devote all efforts to investor protection and other work, and provide advice and suggestions to the committee from various aspects such as further standardizing the level of corporate governance, improving the quality of information disclosure, enhancing the company’s investment management capabilities, and guiding the establishment of correct market value management concepts, and assisting the formation of protection of China’s capital market A good atmosphere for small and medium investors and serving small and medium investors.

        3. Maintain a high proportion of cash dividends and continue to give back to investors

        As an important part of investor protection, the cash dividends of listed companies are the return and protection of investors'**. Zheshu Culture always attaches great importance to sharing business results with investors. At the beginning of listing, cash dividend requirements were written into the "Articles of Association", and a higher percentage of cash dividend policies than the legal requirements were implemented. In nine years, the ratio of cash dividends in three years exceeded 50. %, as of 2019, the cumulative cash dividend has exceeded 1.353 billion yuan.

In the face of stock market volatility in recent years, the company and its controlling shareholders have taken timely measures to stabilize the company's stock price, boost market confidence, and protect investors' interests. In 2015, in order to actively respond to the call of the China Securities Regulatory Commission to stabilize the stock market, the company’s management increased its holdings with its own funds, while the controlling shareholder increased its holdings with its own funds by nearly 100 million yuan; When the stock price is good but the stock price has fallen sharply, the stock repurchase plan was launched at the first time, using its own funds of 307 million yuan to repurchase 36,193,430 shares of the company, accounting for 2.78% of the company's total share capital, and the controlling shareholder also implemented another 100 million yuan increase in holdings Plan to boost investor confidence. The above measures have not only conveyed the confidence of the company and its controlling shareholders in the company's future development prospects, but also demonstrated the company's determination and responsibility to protect the rights and interests of investors, and won unanimous praise from the securities regulatory authorities and the majority of investors.

        3. Enhance the ability to find opportunities in crisis, persist in accelerating kinetic energy transformation, and start a new chapter in the future

        Entering 2020, the current global epidemic spread, financial market turmoil, economic and trade frictions, etc., the severity, complexity and uncertainty of global economic and social development are becoming more and more fierce and crises. This year will not only be a turning point in the world pattern, but also a turning point in the life and death of many industries and enterprises. How should we maintain our strategic determination and continue to empower ourselves?

        Not long ago, General Secretary Xi Jinping visited Zhejiang again in the spring and rain. The whole province was encouraged and excited. The general secretary pointed out that “crisis and opportunity always coexist, and overcoming a crisis is an opportunity” and eagerly looks forward to Zhejiang. It is necessary to "strive to become an important window for comprehensively displaying the superiority of the socialist system with Chinese characteristics in the new era." This is the new goal, new orientation, and mission proposed by the General Secretary for Zhejiang.

        As a state-owned cultural enterprise listed in Zhejiang **, Zheshu Culture has always been at the forefront of industrial innovation and development and institutional reforms, and is also a pioneer and pathfinder of the digital economy. We will strengthen our confidence in self-development, strive to improve our ability to turn crises into opportunities, seize the strategic opportunities of the Internet, big data technological innovation and the development of the cultural industry, and open up innovation channels to reshape the industrial structure.

        In the new year, the company will firmly grasp the trend of "new consumption" and further optimize the layout of the digital entertainment industry based on the Wingfeng network. While maintaining the steady growth of the domestic game business, the company will further expand its overseas business layout and increase technological research and development. And the intensity of market expansion, explore the possibility of applying artificial intelligence to digital entertainment fields such as leisure, social interaction, and culture, and promote cultural products to "go deeper" and "go global."

        In the new year, the company will seize the opportunity of "new infrastructure", continue to strengthen the leading position of the "Fuchun Cloud" Internet data center in the industry, and actively look for new expansion opportunities, and further explore the expansion of the industry based on high-quality IDC resources Related extended services on the upstream and downstream of the chain have promoted Fuchun Cloud to become a new growth point for the company's operating performance. At the same time, we will further invest in the construction of smart cities and smart government affairs such as "Urban Brain" and "Digital Zhejiang", helping Zhejiang to continue its digital transformation at the forefront of the country.

        In the new year, the company will make every effort to stimulate the new vitality and potential of the content industry under the in-depth integration of media, integrate resources and promote the construction of integrated media platforms with high standards, and help the integrated media business segment to quickly realize independent and clear market-oriented operations, and concentrate its efforts. Build a "Tianshu" media-integrated cloud platform, complete the grafting and integration of resources of the "Tianmu" media-integrated cloud platform, and actively explore the organic integration of the media-integrated platform with big data, artificial intelligence, blockchain and other high-tech, and initially form a conformity Mainstream value Internet content aggregation system, operation system, communication system and business system.

        In the new year, the company will also vigorously promote the construction of the Zhejiang Digital Cultural Industry Park project to further meet the company's strategic needs for future development, realize the industrial agglomeration effect, and create a new landmark for the development of Internet digital culture aggregation.

        The future has　

Come, it's almost here. What is uncertain is the environment, what is certain is ourselves. In this era of “great changes unseen in a century”, in the context of the integration and development of the media industry that has truly entered the deep waters, and at the moment when the pandemic is driving the digital economy to leapfrog development, we are firming up our confidence, holding hands, and committed to Let numbers connect to a better life. This is our common pursuit and hope now and in the future, as well as our firm determination and confidence in development and breakthroughs.

         In the new year, the company will continue to uphold the concept of high-quality development, always adhere to the belief in investor protection, and earnestly assume the responsibility and mission of protecting the rights and interests of investors, make unremitting efforts to promote the construction of a good capital market environment, and create More and higher value.

——Zhang Xuenan, Managing Director of Zhejiang Daily Digital Culture Group Co., Ltd.