1. Changes in operating income structure: With the continuous expansion of Hengdian's film and television business, in 2022, the proportion of high tax items in the company's operating income increased, resulting in an increase in the overall VAT rate.
2. Changes in cost structure: Hengdian Film and Television Company increased its investment in high-cost projects in 2022. The input tax of these projects was higher, and the tax payable after deduction was less, thus pushing up the VAT rate.
3. Tax policy adjustment: In recent years, the state has implemented a series of tax policy adjustments to Hengdian Film and Television, which has had an impact on the tax rate of Hengdian Film and Television, so the tax rate of value-added tax has increased.