[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Company Profile](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) The reporting entity is Damai Entertainment Holdings Limited, formerly Alibaba Pictures Group Limited, renamed on June 5, 2025, and is incorporated in Bermuda with stock code 1060 - The company's name was changed from "Alibaba Pictures Group Limited" to "Damai Entertainment Holdings Limited", effective June 5, 2025[4](index=4&type=chunk) [Chairman's Statement](index=3&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) [Strategic Transformation and Market Insights](index=3&type=section&id=%E6%88%B0%E7%95%A5%E8%BD%89%E5%9E%8B%E8%88%87%E5%B8%82%E5%A0%B4%E6%B4%9E%E5%AF%9F) The company has successfully transformed from a film content producer into a diversified entertainment ecosystem operator, driven by a "Content + Technology" strategy and global expansion - The company's strategy has shifted from a sole film and entertainment content producer to a diversified entertainment ecosystem operator covering the entire pan-entertainment industry chain, including live entertainment and IP derivative development[7](index=7&type=chunk) - A live entertainment ecosystem has been built with Damai at its core, achieving **strong Gross Merchandise Volume (GMV) growth for two consecutive years** and launching an international ticketing system to accelerate global expansion[8](index=8&type=chunk) - The IP derivative business achieved leapfrog growth, focusing on **"full-chain IP development"**, with its Alifish platform enhancing commercialization efficiency through an "IP2B2C full-chain service model"[10](index=10&type=chunk) - The company continues to deepen the application of AI technology in the film and television industry chain, upgrading it from a tool to a core engine to drive intelligent business transformation[12](index=12&type=chunk) - The globalization strategy is accelerating, using the Greater Bay Area as a pivot point to achieve two-way connectivity and deep integration between domestic and overseas markets[13](index=13&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Offline Entertainment Market Review](index=6&type=section&id=%E7%B7%9A%E4%B8%8B%E5%A8%9B%E6%A8%82%E5%B8%82%E5%A0%B4%E5%9B%9E%E9%A1%A7) China's offline entertainment market showed divergence, with a decline in the film sector but strong growth in the live performance and IP licensing markets **Key Offline Entertainment Market Data** | Market | Metric | Reporting Period Data | YoY Change | | :--- | :--- | :--- | :--- | | Film Market | Total Box Office | Approx. RMB 50.5 billion | Down approx. RMB 5.1 billion | | | Admissions | Approx. 1.17 billion | Down approx. 160 million | | Performance Market | Total Box Office Revenue | Approx. RMB 57.954 billion | +15.37% | | | Large-scale Concert Box Office | Exceeded RMB 26 billion | +78.1% | | IP Licensing Market | Total Retail Sales of Licensed Goods | Approx. RMB 155.09 billion | Seven consecutive years of growth | [Overall Business Review and Financial Performance](index=7&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) The company achieved resilient growth driven by its "Content + Technology" strategy, with significant increases in revenue, net profit, and adjusted EBITA, alongside a business segment reorganization **Key Financial Indicators for the Reporting Period** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 6.702 billion | 5.036 billion | 33% | | Net Profit Attributable to Owners | 364 million | 285 million | 28% | | Adjusted EBITA | 809 million | 504 million | 61% | - During the reporting period, the company restructured its operating segments from five to four: "Film Technology, Investment, Production, and Distribution Platform", "Damai", "IP Derivative Business", and "Drama Series Production"[18](index=18&type=chunk) **Segment Performance (For the year ended March 31)** | Segment | Revenue (RMB in thousands) | Segment Results (RMB in thousands) | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Film Technology, Investment, Production, and Distribution Platform | 2,711,809 | 2,999,459 | 73,209 | 811,901 | | Damai | 2,057,205 | 612,585 | 1,230,283 | 280,565 | | IP Derivative Business | 1,433,393 | 827,545 | 380,349 | 217,764 | | Drama Series Production | 499,919 | 596,124 | 25,403 | 14,459 | | **Total** | **6,702,326** | **5,035,713** | **1,709,244** | **1,324,689** | [Segment Business Analysis](index=9&type=section&id=%E5%88%86%E9%83%A8%E6%A5%AD%E5%8B%99%E5%88%86%E6%9E%90) Segment performance diverged, with strong growth in Damai and IP Derivatives, while the Film segment declined and the Drama Series segment saw mixed results [Film Technology, Investment, Production, and Distribution Platform](index=9&type=section&id=%E9%9B%BB%E5%BD%B1%E7%A7%91%E6%8A%80%E8%88%87%E6%8A%95%E8%B3%87%E8%A3%BD%E4%BD%9C%E5%AE%A3%E7%99%BC%E5%B9%B3%E5%8F%B0) Amid a declining film market, this segment's revenue and performance fell by 10% and 91% respectively, despite initiatives like "Tao Mai VIP" and tech investments **Film Technology, Investment, Production, and Distribution Platform Performance** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2.712 billion | 2.999 billion | -10% | | Segment Results | 73 million | 812 million | -91% | - Tao Piao Piao and Damai jointly launched the "Tao Mai VIP" membership system, integrating film and performance consumption scenarios to effectively retain high-value consumer loyalty[27](index=27&type=chunk) - The company continues to increase investment in technologies such as AI, digital humans, and virtual production, having built four virtual production studios to reduce costs[32](index=32&type=chunk) [Damai](index=12&type=section&id=%E5%A4%A7%E9%BA%A5) Damai delivered robust performance with revenue and segment results growing 236% and 339% respectively, driven by the booming live entertainment market **Damai Segment Performance** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2.057 billion | 613 million | +236% | | Segment Results | 1.23 billion | 281 million | +339% | - Damai has recorded **high-speed growth in Gross Merchandise Volume (GMV) for two consecutive years**, providing ticketing services for nearly all major concerts in China[36](index=36&type=chunk) - In live entertainment content, Damai has accumulated six major content labels and participated in the investment and production of over 120 IPs, covering various categories[38](index=38&type=chunk) [IP Derivative Business](index=14&type=section&id=IP%E8%A1%8D%E7%94%9F%E6%A5%AD%E5%8B%99) The IP derivative business became a key growth engine, with revenue and segment results increasing by 73% and 75% respectively **IP Derivative Business Segment Performance** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1.433 billion | 828 million | +73% | | Segment Results | 380 million | 218 million | +75% | - Retail sales of Alifish's licensed IP products grew substantially, driving **Alifish's revenue growth by over 90%**[41](index=41&type=chunk) - The collectible toy brand "KOITAKE" has collaborated with over 40 film and television IPs, including "The Legend of Shen Li" and "Empresses in the Palace"[42](index=42&type=chunk) [Drama Series Production](index=15&type=section&id=%E5%8A%87%E9%9B%86%E8%A3%BD%E4%BD%9C) The drama series production segment's revenue declined by 16%, but its segment results grew by 76% due to a focus on high-quality content **Drama Series Production Segment Performance** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 500 million | 596 million | -16% | | Segment Results | 25 million | 14 million | +76% | [Outlook and Strategic Planning](index=15&type=section&id=%E5%89%8D%E6%99%AF%E8%88%87%E6%88%B0%E7%95%A5%E8%A6%8F%E5%8A%83) The company's future strategy focuses on four core pillars: content leadership, user growth, commercial derivatives, and overseas expansion - The company will continue to advance its four strategic plans: - **Content Leadership**: Enhance production capabilities across multiple content categories like films, drama series, and live performances - **User Growth**: Accelerate the merger of film and performance ticketing platforms to create a one-stop ticketing service - **Commercial Derivatives**: Further scale up the IP derivative business - **Overseas Expansion**: Expand into Asia and globally, starting from the Greater Bay Area[47](index=47&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews financial performance, including expense changes, liquidity, capital structure, a major acquisition, and employee information **Expense and Income Overview** | Item | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 789 million | 710 million | +11% | | Administrative Expenses | 1.237 billion | 978 million | +27% | | Net Finance Income | 193 million | - | - | **Financial Resources and Liquidity (As of March 31, 2025)** | Indicator | Amount (RMB) | | :--- | :--- | | Cash, cash equivalents and bank deposits due within one year | Approx. 3.365 billion | | Short-term borrowings | Approx. 397 million | | Gearing Ratio | Zero (Net cash position) | - A major acquisition was completed during the period, acquiring a 70% equity interest in Dongyang Meira for **RMB 350 million** to offset a loan of the same amount owed by Huayi Brothers[56](index=56&type=chunk) - As of the period end, the Group had **1,733 employees**, an increase from 1,455 in the prior year, with total staff costs of approximately RMB 885 million[58](index=58&type=chunk) [Biographical Details of Directors and Senior Management](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4%E5%B1%A5%E6%AD%B7%E8%B3%87%E6%96%99) [Profiles of Directors and Senior Management](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4%E7%B0%A1%E4%BB%8B) This chapter details the backgrounds of the executive directors, INEDs, and company secretaries, noting the resignation of a non-executive director during the period - The core executive director team includes: - **Mr. Fan Luyuan**: Chairman and CEO, an Alibaba partner who previously worked at Alipay - **Mr. Li Jie**: President, responsible for film investment, promotion, distribution, and user platform business in mainland China - **Mr. Meng Jun**: Chief Financial Officer, with extensive financial management experience across various Alibaba Group business units[60](index=60&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) - During the reporting period, Mr. Dong Benhong resigned as a non-executive director on January 10, 2025[71](index=71&type=chunk) [Report of the Directors](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A) [Business and Performance](index=21&type=section&id=%E6%A5%AD%E5%8B%99%E8%88%87%E6%A5%AD%E7%B8%BE) The company's principal activity is investment holding, and the Board does not recommend the payment of a dividend for the fiscal year - The Directors **do not recommend the payment of a dividend** for the financial year ended March 31, 2025[75](index=75&type=chunk) [Share Incentive Schemes](index=25&type=section&id=%E8%82%A1%E4%BB%BD%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83) This section details the company's share incentive plans, including the terminated 2012 Scheme and the current 2021 Scheme and Share Award Scheme - The "2012 Share Option Scheme" was terminated on September 6, 2021, and replaced by the "2021 Share Option Scheme"[94](index=94&type=chunk) - As of the end of the reporting period, **12,375,000 outstanding share options** remained under the "2012 Share Option Scheme"[118](index=118&type=chunk) - During the period, the company granted **161,235,222 award shares** under the Share Award Scheme, while 162,342,142 shares vested[153](index=153&type=chunk) [Connected Transactions](index=48&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) This section discloses ongoing connected transactions, primarily with Alibaba Group, and explains the contractual arrangements (VIE structure) used to control restricted businesses in China [Continuing Connected Transactions](index=51&type=section&id=%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) Details 29 continuing connected transactions essential for daily operations, covering services like operations, payment, marketing, and cloud with Alibaba ecosystem partners **Selected Major Continuing Connected Transactions (FY2025)** | Transaction Type | Counterparty | Annual Cap (RMB) | Actual Amount (RMB) | | :--- | :--- | :--- | :--- | | Operation Services Agreement | Tmall Entities | 140 million | 99.057 million | | Payment Services Framework Agreement | Alipay | 150 million | 124 million | | Copyright Transfer Framework Agreement | Youku Technology | 1.9 billion | 426 million | | Shared Services Framework Agreement | Alibaba.com | 136 million | 129 million | | Cloud Services Framework Agreement | Alibaba Cloud | 56 million | 50.391 million | [Contractual Arrangements (VIE Structure)](index=94&type=section&id=%E5%90%88%E7%B4%84%E5%AE%89%E6%8E%92%20(VIE%E6%9E%B6%E6%A7%8B)) This explains the two sets of contractual arrangements (VIE structure) used to control and consolidate restricted onshore businesses, detailing their legal basis, terms, risks, and mitigation measures - Due to PRC laws restricting foreign investment in businesses such as film production and distribution, broadcasting, and value-added telecommunications, the Group uses a **Contractual Arrangement (VIE structure)** to gain effective control over and consolidate its onshore operating companies[246](index=246&type=chunk)[302](index=302&type=chunk)[353](index=353&type=chunk) - **Contractual Arrangement I** primarily involves entities like Zhonglian Jinghua and Beijing Ali Tao, enabling operations in restricted businesses like film, drama series, and ticketing[246](index=246&type=chunk) - **Contractual Arrangement II** was established for the acquisition of the Damai business, involving entities like Beijing Damai and Jinmai Technology to operate in restricted areas like live performances and online ticketing[318](index=318&type=chunk) - The company acknowledges risks associated with the VIE structure, including potential non-compliance rulings from the PRC government, unenforceability of agreements, and potential conflicts of interest[306](index=306&type=chunk)[371](index=371&type=chunk) [Corporate Governance Report](index=127&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Corporate Governance Overview](index=127&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E6%A6%82%E8%BF%B0) The company complied with most Corporate Governance Code provisions, with the only deviation being the combined role of Chairman and CEO - The company deviated from code provision C.2.1 of the Corporate Governance Code, as the roles of Chairman and CEO are not separate and are both held by Mr. Fan Luyuan[407](index=407&type=chunk) [Board of Directors](index=128&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board comprises six directors, meeting the required number of INEDs, and has adopted a board diversity policy **Board Meeting Attendance** | Director Name | Position | Board Meeting Attendance | General Meeting Attendance | | :--- | :--- | :--- | :--- | | Mr. Fan Luyuan | Chairman & CEO | 7/7 | 1/1 | | Mr. Li Jie | Executive Director | 7/7 | 1/1 | | Mr. Meng Jun | Executive Director | 7/7 | 1/1 | | Ms. Song Lixin | Independent Non-executive Director | 7/7 | 1/1 | | Mr. Tong Xiaomeng | Independent Non-executive Director | 7/7 | 1/1 | | Mr. Chan Chi Hong | Independent Non-executive Director | 7/7 | 1/1 | [Board Committees](index=136&type=section&id=%E8%91%A3%E4%BA%8B%E5%A7%94%E5%93%A1%E6%9C%83) The Board has four committees: Remuneration, Audit, Nomination, and Executive, whose composition, roles, and work during the year are detailed - **Remuneration Committee**: Chaired by Mr. Tong Xiaomeng, responsible for reviewing and recommending director remuneration[439](index=439&type=chunk) - **Audit Committee**: Chaired by Mr. Chan Chi Hong, responsible for overseeing financial reporting, external auditors, and internal control systems[448](index=448&type=chunk) - **Nomination Committee**: Chaired by Mr. Fan Luyuan, responsible for reviewing Board structure and nominating director candidates[456](index=456&type=chunk) - **Executive Committee**: Comprised of the three executive directors, responsible for handling and monitoring daily management matters[461](index=461&type=chunk) [Accountability and Audit](index=142&type=section&id=%E5%95%8F%E8%B2%AC%E5%8F%8A%E6%A0%B8%E6%95%B8) This section outlines responsibilities for financial reporting and details the three-line model for risk management and internal control - The company has established a **three-line model for risk management**: the first line is business operations teams; the second is risk management functions (finance, legal, security, internal control); the third is independent supervision (internal audit, integrity)[473](index=473&type=chunk)[474](index=474&type=chunk)[475](index=475&type=chunk) **Key Risks and Mitigation Measures** | Key Risk | Risk Description | Risk Mitigation Measures | | :--- | :--- | :--- | | Market Risk | Declining activity in the film market versus rising demand in the performance market; potential operational issues with partners | Execute "Content + Technology" strategy, stabilize ticketing platform advantages, increase AI and virtual production investment; establish partner credit management | | Industry Policy Risk | Content may not be released due to regulatory, censorship, or tainted artist issues, causing losses | Closely monitor regulatory trends, strictly select themes, conduct due diligence on artists, and avoid collaboration with tainted artists | | Legal & Compliance Risk | User data breaches or content compliance issues (e.g., obscenity, defamation) could trigger penalties and reputational risk | Strictly enforce regulatory requirements, update user data protection policies, review platform content, and continuously improve user experience | - During the reporting period, total remuneration paid to the external auditor, PricewaterhouseCoopers, was **RMB 4,467,000**, all for audit services[487](index=487&type=chunk) [Shareholders' Rights and Communication](index=153&type=section&id=%E8%82%A1%E6%9D%B1%E6%AC%8A%E5%88%A9%E5%8F%8A%E6%BA%9D%E9%80%9A) The company outlines shareholders' rights and emphasizes its commitment to effective communication through various channels - Shareholders holding not less than **one-tenth of the paid-up capital** of the company have the right to request the Board to convene a special general meeting[496](index=496&type=chunk) [Independent Auditor's Report](index=156&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A) [Audit Opinion and Key Audit Matters](index=156&type=section&id=%E5%AF%A9%E8%A8%88%E6%84%8F%E8%A6%8B%E8%88%87%E9%97%9C%E9%8D%B5%E5%AF%A9%E8%A8%88%E4%BA%8B%E9%A0%85) The auditor issued an unqualified opinion and highlighted three key audit matters: impairment assessments of goodwill, film and TV rights, and equity-accounted investments - The auditor issued an **unqualified opinion** on the consolidated financial statements[510](index=510&type=chunk) - Key Audit Matters included: - **Impairment assessment of goodwill**: Involves high uncertainty in estimating the recoverable amount of cash-generating units - **Impairment assessment of film and television rights**: The estimation of recoverable amounts is subject to high uncertainty - **Impairment assessment of investments accounted for using the equity method**: Involves significant estimates and assumptions in determining the recoverable amount[516](index=516&type=chunk) [Consolidated Financial Statements](index=167&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss](index=167&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The statement shows a 33% revenue increase to RMB 6.702 billion and a 28% rise in profit attributable to owners to RMB 364 million **Consolidated Statement of Profit or Loss Summary (For the year ended March 31)** | Indicator (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 6,702,326 | 5,035,713 | | Gross Profit | 2,478,130 | 2,017,043 | | Operating Profit | 648,735 | 309,680 | | Profit for the year | 386,392 | 297,469 | | Profit attributable to owners of the Company | 363,576 | 284,790 | | Basic earnings per share (RMB cents) | 1.23 | 1.03 | [Consolidated Statement of Financial Position](index=169&type=section&id=%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of March 31, 2025, total assets reached RMB 23.5 billion and total equity was RMB 16.47 billion, with a notable increase in non-current assets **Consolidated Statement of Financial Position Summary (As at March 31)** | Indicator (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 11,360,623 | 8,366,224 | | Current assets | 12,138,760 | 13,093,676 | | **Total assets** | **23,499,383** | **21,459,900** | | **Equity and Liabilities** | | | | Total liabilities | 7,034,083 | 5,639,020 | | Total equity | 16,465,300 | 15,820,880 | | **Total equity and liabilities** | **23,499,383** | **21,459,900** | [Consolidated Statement of Cash Flows](index=173&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The statement shows a net cash outflow from operating activities of RMB 1.056 billion, resulting in a year-end cash balance of RMB 2.506 billion **Consolidated Statement of Cash Flows Summary (For the year ended March 31)** | Indicator (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (outflow)/inflow from operating activities | (1,055,774) | 822,191 | | Net cash outflow from investing activities | (1,276,188) | (298,758) | | Net cash inflow/(outflow) from financing activities | 429,623 | (93,550) | | Net (decrease)/increase in cash and cash equivalents | (1,902,339) | 429,883 | | Cash and cash equivalents at end of year | 2,505,808 | 4,413,697 | [Notes to the Consolidated Financial Statements](index=175&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes provide detailed explanations of accounting policies, segment reorganization, goodwill assessment, business combinations, and significant related party transactions - Note 5 discloses that the Group re-aggregated its operating segments into "Film Technology, Investment, Production, and Distribution Platform", "Damai", "IP Derivative Business", and "Drama Series Production", with comparative segment information restated[556](index=556&type=chunk)[740](index=740&type=chunk) - Note 15 shows the Group's total goodwill of **RMB 3.844 billion**, primarily allocated to the "Film Technology, Investment, Production, and Distribution Platform" segment (RMB 3.442 billion), with no impairment loss recognized[517](index=517&type=chunk)[778](index=778&type=chunk) - Note 36 details two major business combinations: the acquisition of a 70% stake in Dongyang Meira for **RMB 350 million**, generating goodwill of RMB 140 million; and the acquisition of a 51% stake in TH Entertainment for **RMB 200 million** in cash, generating goodwill of RMB 149 million[856](index=856&type=chunk)[862](index=862&type=chunk) [Financial Summary](index=294&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Five-Year Financial Summary](index=294&type=section&id=%E4%BA%94%E5%B9%B4%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section presents key performance and financial position data for the last five fiscal years, showing significant recent revenue growth and profitability **Five-Year Performance Summary (For the year ended March 31)** | RMB in thousands | 2021 | 2022 | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,858,897 | 3,652,170 | 3,500,553 | 5,035,713 | 6,702,326 | | (Loss)/Profit attributable to owners of the Company | (96,311) | 169,853 | (291,132) | 284,790 | 363,576 | **Five-Year Asset and Liability Summary (As at March 31)** | RMB in thousands | 2021 | 2022 | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | 15,540,882 | 15,576,698 | 15,571,638 | 21,459,900 | 23,499,383 | | Total liabilities | (1,702,944) | (1,533,696) | (1,461,427) | (5,639,020) | (7,034,083) | | Equity attributable to owners of the Company | 13,786,321 | 14,017,107 | 14,069,835 | 15,722,396 | 16,227,560 |

Group 1: Market Performance - The Hong Kong stock market indices collectively rebounded, with the Hang Seng Index rising by 1.33%, the Hang Seng China Enterprises Index increasing by 1.51%, and the Hang Seng Tech Index gaining 1.65% [1] - The SaaS sector saw significant gains, with companies like Huilyang Technology rising by 15.56%, Yika by 10.11%, and Kingdee International by 7.27% [1] - The stablecoin concept also surged, highlighted by Yaocai Securities rising by 16.93% and Huajian Medical increasing by 20.41% following the U.S. House of Representatives passing a bill to establish a legal framework for stablecoins [1] Group 2: Sector Performance - Gold and non-ferrous metal stocks experienced a broad increase, with Lingbao Gold rising by 6.24% and China Molybdenum by 3.96% as spot gold prices rose above $3340 per ounce [2] - Major financial sectors, including Chinese brokerage and insurance stocks, also saw gains, with Xingsheng International up by 7.41% and China Life by 5.13% [2] Group 3: Automotive and Related Sectors - The automotive sector, including lithium battery and Tesla-related stocks, showed strong performance, with Tianqi Lithium rising by 5.82% and NIO increasing by 4.62% [3] - Other consumer sectors such as film, tobacco, and food stocks also performed well, with companies like Simoer International rising by 4.99% [3] Group 4: Declining Sectors - Sectors such as cosmetics, aviation, and luxury goods saw declines, with China Eastern Airlines dropping by 2.72% [3] - Notably, Chuangmeng Tiandi experienced a significant drop of 30.12%, despite expectations of turning a profit in the first half of the year [3]

Group 1: Hong Kong Stock Market Highlights - Yunfeng Financial (00376) surged over 21% as the company plans to strategically invest in digital currency and AI sectors [1] - China Merchants Securities (06099) opened nearly 15% higher and is currently up over 4% after receiving approval for a virtual asset license [1] - GDS Holdings (09698) rose over 7% as its Southern GDS data center REIT concluded public investor fundraising ahead of schedule [1] - Hillstone Technology (01478) increased nearly 6% with positive earnings expectations, and Citigroup anticipates a favorable market reaction [1] - Sunny Optical Technology (02382) briefly rose over 3% and is currently up over 1% as its lithography equipment successfully entered Shanghai, indicating a shift to mass production [1] - Kintor Pharmaceutical (02171) saw an early gain of over 3% after achieving positive results in the European patent opposition process [1] - Bilibili (09626) rose over 5% as HSBC expressed optimism about its gaming and advertising business, with new games planned for 2025 [1] - Solar stocks experienced a decline, with institutions citing electricity prices affecting the stable profitability of new energy projects [1] Group 2: U.S. Stock Market Highlights - The U.S. nuclear sector saw gains, with NuScale Power (SMR.US) up 12.38% and Oklo Inc (OKLO.US) up 11.29%, following comments from the U.S. Energy Secretary about a nuclear revival [3] - Autodesk (ADSK.US) rebounded 5.05% after a period of decline, expressing confidence in its cloud and AI business strategies [3] - Sonnet BioTherapeutics (SONN.US) surged 86.46% due to a merger announcement, forming a cryptocurrency financial company valued at $888 million [3] - Quantum stocks rose, with D-Wave Quantum (QBTS.US) up 6.89% and Quantum Computing (QUBT.US) up 8.66% [3] - Hims & Hers Health (HIMS.US) increased 8.64% as it plans to enter the Canadian market with a generic drug following the expiration of a patent [4] - Rocket Lab (RKLB.US) rose 10.71% after Citigroup raised its target price, noting a significant increase in global space technology investments [4] - Nvidia-related stocks mostly strengthened as Jensen Huang made his third visit to China this year [5] - Cryptocurrency stocks collectively rose, with Bitcoin surpassing $120,000, driven by upcoming legislative reviews in the U.S. [5] - Tesla (TSLA.US) gained 1.08% amid investor speculation regarding a stake in xAI [5] - Netflix (NFLX.US) rose 1.35% ahead of its upcoming earnings report, with analysts projecting significant revenue growth [6]

Company Overview - Damai Entertainment is a leading full-industry chain live entertainment platform in China, engaged in content production, promotion, distribution, IP derivative licensing, commercial operations, cinema and entertainment event ticket management, and internet data services. The company has participated in the production and distribution of over 300 films and covers all categories of live entertainment ticketing. Alibaba Group is the controlling shareholder, and the management team has rich experience in the internet industry and holds shares in the company. Since 2023, organizational restructuring has activated organizational vitality, leading to significant growth and scale effects [1]. IP Industry Insights - The IP industry in China is a burgeoning market with a scale of hundreds of billions, showing rapid growth and substantial potential. The primary model for IP licensing in China is product licensing, which can leverage over 25 times the product GMV from a single licensing fee. Compared to Japan and the US, China's IP licensing market still has considerable growth potential, with per capita retail consumption of IP products being less than one-fourth of Japan's and one-fifth of the US's [2]. - Alibaba Yu is the largest IP licensing agency platform in China, having established main licensing agreements with companies like Sanrio. The strategy involves expanding the IP matrix upstream to acquire more top-tier IP licenses and enhancing downstream operations to strengthen IP management and develop B2C business. The competitive advantages include a vast customer base, big data matching, joint marketing, and automated tracking and settlement [2]. Performance in Live Events - The live event industry is experiencing a dual increase in volume and price, supported by policies that facilitate industry expansion. It is projected that the national offline box office for live events will reach 57.9 billion yuan in 2024, with large-scale events accounting for over half of this figure. The increase in per capita box office for large events drives price growth, while tourism and performance attendance boost volume growth [3]. - Damai is expanding its categories and exploring overseas markets, with a smooth logic of "volume and price" increase. The company has deeply integrated resources from the Alibaba ecosystem, establishing a comprehensive layout across content, venues, and ticketing in the live entertainment sector. Damai holds a significant market share in ticketing, with nearly 100% coverage of major concert projects. The company aims to extend large-scale events to overseas markets and diversify into other large-scale events in the domestic market, such as sports events and stand-up comedy [3]. Financial Projections - The company is expected to achieve total revenues of 7.891 billion, 9.534 billion, and 11.683 billion yuan for FY26-28, representing year-on-year growth of 18%, 21%, and 23% respectively. Adjusted EBITA is projected to be 1.012 billion, 1.498 billion, and 2.133 billion yuan for the same period, with year-on-year growth of 25%, 48%, and 42% respectively. As a leader in the live event and IP licensing sectors, the company currently presents a cost-effective valuation and is rated as a "buy" [3].

影视院线 执业证书编号：S0740515080001 Email：kangyw@zts.com.cn 执业证书编号：S0740523070003 Email：yansy@zts.com.cn | 基本状况 | | | --- | --- | | 总股本(百万股) | 29,875.86 | | 流通股本(百万股) | 29,875.86 | | 市价(港元) | 0.96 | | 市值(百万港元) | 28,680.83 | | 流通市值(百万港元) | 29,875.86 | 请务必阅读正文之后的重要声明部分 "演艺+IP"双引擎，重构线下娱乐新基建 ——大麦娱乐首次覆盖 股价与行业-市场走势对比 一、大麦娱乐：国内领先的全产业链现实娱乐平台。大麦娱乐是一家主要从事内容制 作、宣传和发行、IP 衍生授权及商业运营、院线及娱乐活动票务管理，以及互联网数 据服务的投资控股公司。旗下电影业务累计参与了 300 余部电影的出品发行和推广， 旗下演出业务覆盖全品类现实娱乐票务类型。阿里巴巴集团系公司控股股东，管理层 互联网行业经验丰富且参与持股。23 年起，架构调整激活组织活力，增长进入快车道， 规模效应明显。 相关 ...

图片来源：视觉中国 6月29日，本该是鹿晗西安站演唱会门票开售日。不少网友在大麦抢票时发现，原定18:07为优先权购 票、19:07为普通场次抢票，但普通场次抢票时段仍仅开放优先权通道。普通用户点击后显示"无抢票特 权"，导致无法购票。而部分用户未计划在西安场使用优先权，却因系统BUG被迫消耗唯一特权资格 （每个账号仅一次），影响后续场次抢票机会。 西安站原定6月2 9日开票。图片来源：大麦 对于上述问题，昨日深夜，大麦通过官方微博发布关于"鹿晗西安站演唱会公开售票未能正常开启"情况 说明，并致歉。 文中称，本次巡演主办方为曾购买过2023年鹿晗巡演的歌迷发放了优先购票权益。但因大麦工作人员对 优先权购票的时间配置错误，导致鹿晗西安站演唱会公开售票阶段（原定2025年6月29日19:07开始）未 能正常开启。 经过与主办方沟通，大麦将对6月29日鹿晗西安站19:07后的购票订单做如下处理： 1. 所有19:07之后的6731笔订单（合计8128张票），平台将全部做退票退款处理； 2. 所有19:07之后抢票成功的用户，大麦补偿97折券一张，在鹿晗本轮中国内地巡演中均可使用； 3. 所有19:07之后抢票成功的 ...

Core Viewpoint - Bona Film Group's major shareholders, including CITIC and Alibaba, plan to reduce their holdings by up to 68,315,264 shares, representing 5.0016% of the total share capital, with a maximum cash-out amount exceeding 300 million yuan [1][3]. Shareholder and Reduction Scale - CITIC Group, holding 10.34% of shares, plans to reduce up to 3% of its holdings (approximately 40.9764 million shares), with CITIC Securities alone reducing 1.06% [2]. - Alibaba Group, holding 6.22% of shares, plans to reduce up to 2.0016% of its holdings (approximately 27.3389 million shares), marking its first reduction since the IPO [2]. Timeframe and Method of Reduction - The reduction period is set from July 21, 2025, to October 20, 2025, starting 15 trading days after the announcement [4]. - The reduction will be executed through centralized bidding or block trading, with a price not lower than the net asset value of 3.84 yuan per share [5]. Underlying Reasons for Reduction - The primary motivation for the reduction is financial return needs, as both CITIC and Alibaba are financial investors. They face continuous losses from Bona Film Group, with cumulative losses nearing 1.5 billion yuan from 2022 to 2024, and a stock price decline of 18.27% within the year [6]. - Alibaba's recent strategy has involved divesting non-core assets, aligning with its cash flow optimization goals [7]. Signals of Deteriorating Company Fundamentals - Bona Film Group's performance has been declining, with revenue dropping from 2.012 billion yuan in 2022 to 1.461 billion yuan in 2024, and losses expanding from 72 million yuan to 867 million yuan. The first quarter of 2025 saw a net loss of 955 million yuan, a year-on-year decline of over 170 times, indicating a deepening operational crisis [8]. - The expanding losses have led to a loss of internal cash generation capability, compounded by a slow recovery in the film industry, resulting in shareholders lacking confidence in the company's short-term turnaround [8]. Regulatory Risks and Governance Issues - In May 2025, the Xinjiang Securities Regulatory Bureau issued a warning to Bona Film Group and its executives regarding the improper use of funds amounting to nearly 470 million yuan from 2022 to 2023, which, although returned, exposed failures in internal controls [9]. - Such violations undermine investor trust and increase the willingness of shareholders to reduce their holdings [10]. Market Impact and Potential Risks - The planned 5% reduction in shares is expected to exert significant pressure on the stock price, particularly in a weak market, potentially impacting liquidity in the secondary market [11]. - The first reduction by Alibaba signals a pessimistic outlook, and further reductions could trigger a chain reaction, shaking market confidence in governance stability despite claims that the reduction will not lead to a change in control [13]. Industry Challenges Reflected - The performance decline of Bona Film Group is indicative of broader challenges in the film industry, which is facing strict content reviews, high production costs, and competition from streaming services, with a 9% year-on-year decline in national box office revenue in 2024 [14]. - The reduction by shareholders reflects skepticism about the long-term profitability model of film assets amid these industry headwinds [14]. Capital Withdrawal Amid Multiple Challenges - The reduction is seen as a stop-loss action by financial investors in response to the deteriorating fundamentals of Bona Film Group, including expanding losses, shrinking revenue, governance failures, and industry headwinds [14]. - If the company fails to launch a successful content piece in 2025 or attract strategic capital through restructuring, it may enter a downward spiral of shareholder reductions, declining financing capabilities, and worsening operations [14].

Group 1 - Hong Kong film stocks have strengthened, with Ningmeng Film (09857.HK) rising over 20% [1] - Alibaba Pictures (01060.HK) increased nearly 7% [1] - Other companies such as Lehua Group (02306.HK) and One Universe (01616.HK) also saw gains [1]

Core Insights - The report highlights the significant increase in the "old-for-new" subsidy policy for consumer goods in 2025, with a total of 3 trillion yuan allocated to support this initiative, which includes a broader range of products compared to 2024 [11][18] - The report emphasizes the strong performance of Alibaba Pictures, which is transitioning to "Damai Entertainment" and focusing on live performances and IP derivatives, indicating a shift from traditional film revenue streams [10][12] Group 1: "Old-for-New" Policy - The 2025 "old-for-new" policy has expanded its subsidy range, now including additional products such as microwaves, water purifiers, dishwashers, and rice cookers, enhancing consumer appeal [11][18] - By the end of May, 162 billion yuan of central government subsidies had been distributed, with a total sales volume of 1.1 trillion yuan for consumer goods under this policy [11][12] - The report notes that the policy has had a varied impact on different consumer goods, with significant growth in home appliance sales, particularly in the central and western regions of China [11][12] Group 2: Alibaba Pictures and Entertainment Sector - Alibaba Pictures plans to rebrand as "Damai Entertainment," focusing on live entertainment and IP derivatives, with 72% of its revenue projected to come from ticketing and content production by FY2025 [10][12] - The report forecasts revenue growth for Alibaba Pictures, estimating revenues of 7.566 billion yuan, 8.684 billion yuan, and 9.739 billion yuan for FY26, FY27, and FY28 respectively, with a target valuation of 31.9 billion yuan [12][15] - The live performance segment is expected to continue its strong growth, with ticket sales projected to reach 57.954 billion yuan in 2024, reflecting a year-on-year increase of 15.37% [15]

Group 1 - The summer film season of 2025 is approaching, with films entering a concentrated scheduling period, and the market is expected to improve marginally due to quality supply [1][2][3] - The summer season is one of the most important periods for films, lasting from June to August, and historically contributes significantly to annual box office revenue, accounting for 28% to 34% of total box office in the past three years [1][2] - As of June 10, 2025, a total of 69 films have been scheduled for release, indicating room for growth compared to previous years, with notable films set to release in June, July, and August [2] Group 2 - Current market expectations are low, but there is optimism for marginal improvement in the overall market driven by supply, despite a decline in market heat since Q2 due to a lack of major releases [3] - The first quarter of 2025 saw a surge in viewership driven by "Nezha 2," but the absence of major films in Q2 has led to decreased market enthusiasm [3]