China South Publishing & Media Group Co., Ltd. (SH 601098), which is headquartered in Changsha, the capital city of Human Province, and currently included in the MSCI Emerging Markets Index, released its unaudited financial results for 2017 on Wednesday.
The report shows that the company could suffer a decline in both its operating revenue and net profit as well.
More specifically, its operating revenue is expected to drop more than 6.7 percent year-on-year to end up with around 103.58 billion yuan, while its net profit could reach 15.12 billion yuan in 2017, a decrease of as much as 16.2 percent from a year earlier.
Meanwhile, the company's total assets could hit roughly 19.7 billion yuan by the end of last year, an increase of 5.77 percent from the beginning of the year.
Over the past year, as the government of Hunan Province has started to regulate its reference book market, the sale of the company's reference books reduced to some extent, which the company believes is the main reason for the drop in its operating revenue.
Nonetheless, the company insists in its report that thanks to its stable asset structure, it still maintains adequate liquidity as well as a relatively strong solvency.
In fact, being aware of the unavoidable decline of the traditional publishing industry, the company has been actively shifting its business focus to the online education sector as well as the family education arena in recent years.
In 2015, the Hunan Education Publishing House, a subsidiary of the company, launched the Bakclass.com, a website which provides online school and family education products. The website has, so far, garnered a user base of over 1.3 million users and led to an increase in both the operating revenue and the net profit for the publishing house in 2017.
The report shows that the company could suffer a decline in both its operating revenue and net profit as well.
More specifically, its operating revenue is expected to drop more than 6.7 percent year-on-year to end up with around 103.58 billion yuan, while its net profit could reach 15.12 billion yuan in 2017, a decrease of as much as 16.2 percent from a year earlier.
Meanwhile, the company's total assets could hit roughly 19.7 billion yuan by the end of last year, an increase of 5.77 percent from the beginning of the year.
Over the past year, as the government of Hunan Province has started to regulate its reference book market, the sale of the company's reference books reduced to some extent, which the company believes is the main reason for the drop in its operating revenue.
Nonetheless, the company insists in its report that thanks to its stable asset structure, it still maintains adequate liquidity as well as a relatively strong solvency.
In fact, being aware of the unavoidable decline of the traditional publishing industry, the company has been actively shifting its business focus to the online education sector as well as the family education arena in recent years.
In 2015, the Hunan Education Publishing House, a subsidiary of the company, launched the Bakclass.com, a website which provides online school and family education products. The website has, so far, garnered a user base of over 1.3 million users and led to an increase in both the operating revenue and the net profit for the publishing house in 2017.
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