单一头部内容——IP矩阵化平台——IP深度运营商。IP方可划分为IP内容创造者和IP运营商，前者具备 创作头部内容能力，进而实现IP矩阵化开发成为IP平台;而后者基于IP商业化的参与深度和产业链布局， 收入多元化，延展IP价值空间。近年来，IP方对于多形态开发意识明显增强，在战略架构上已做出改 变，而IP方实现从IP内容创造者到IP运营商发展，大多通过广泛授权或自营、股权投资与战略合作的路 径。对于自有IP建设而言，公司通过可视化曝光，自营和授权并重的方式，撬动产业链产能，如阅文集 团、上海电影和光线传媒;而对于代理IP而言，公司通过授权推广做本地化或者新品类渗透，如大麦娱 乐等。 智通财经APP获悉，中金发布研报称，2025 年初至今，结合战略变化和业务布局，传媒行业IP方在产业 链纵向延展有明显提速。国内IP衍生品市场规模在2024年已突破1000亿元，年轻消费者对情感投射和即 时满足的需求推动"谷子经济"持续演化。头部IP如"哪吒"展现较强影响力弹性，叠加IP方资产负债表改 善及供应链成熟，行业正迎来产能释放期。该行维持相关覆盖公司盈利预测、评级和目标价不变，重点 关注大麦娱乐(01060)、阅文集团( ...

日前，大麦娱乐旗下专业动画厂牌小宇宙未来事务所，在苏州工业园区挂牌，苏州产能基地正式落 成。 近年来，园区以数字文化、创意设计、内容出版、文化装备四大方向为抓手，持续优化营商环境， 精准招引头部企业、央企国企及行业领军项目，不断强链、补链、延链。此次小宇宙未来事务所的落 户，将为园区注入全新创作力量、前沿艺术理念与顶尖技术动能，助力园区打造具有全球影响力的数字 文化产业集群。 小宇宙未来事务所诞生于2022年，专注动画电影"开发+制作+营销+衍生"全链路运营，深度参与 《长安三万里》《新神榜：杨戬》《喜羊羊与灰太狼之筐出未来》等热门影片。目前，该厂牌携手全国 8家A级动画供应商，其中7家扎根在苏州，形成了极具竞争力的"苏州动画军团"。为强化产业集群效 应，大麦娱乐在园区注册全资子公司苏州小宇宙影视传媒有限公司，未来将依托园区的人才、政策与产 业配套优势，打造动画电影全流程产能中心。 作为首批深度合作伙伴，曾出品《西游记之大圣归来》《深海》的苏州地海文化传媒有限公司同步 迁址园区，将与小宇宙未来事务所联合开发《少年歌行》系列动画电影IP。 ...

Core Insights - The report highlights the integration of ESG principles into the strategic framework of the company, showcasing its commitment to sustainable development in the entertainment industry [2][8] - The company has made significant advancements in AI technology, leading to increased efficiency and reduced carbon emissions across various operations [3][6] AI Technology and Efficiency - The company has prioritized AI as a core strategic focus, with R&D investment increasing by 47% year-on-year in 2024, targeting smart content production, user behavior prediction, and supply chain optimization [3] - The "AIGC content factory" has automated processes in scriptwriting and music creation, reducing project production cycles by 60% and energy consumption by 35% [3] - AI-assisted rendering technology in the 2025 Spring Festival animated film "Star Sea Adventure" improved special effects production efficiency by three times and reduced data center carbon emissions by 28% through dynamic computing power scheduling [3] Low-Carbon Operations - The company aims for carbon neutrality across its entire supply chain by 2030, achieving a 52% reduction in operational carbon intensity by 2025 compared to 2020 [6] - The headquarters in Hangzhou utilizes photovoltaic technology, generating 2 million kWh annually to meet 80% of its electricity needs, while an AI energy management system optimizes energy use, achieving 40% lower energy consumption per unit area than the industry average [6] - The company has established a "green partner rating system" for suppliers, with 15 out of the top 20 suppliers already transitioning to clean energy, collectively reducing carbon emissions by 120,000 tons [6] Industry Collaboration and Sustainable Ecosystem - As the president unit of the China Entertainment Industry Association, the company initiated the "Green Entertainment Alliance," collaborating with over 30 firms to create a low-carbon development action guide for the entertainment industry [7] - The establishment of a 100 million yuan ESG innovation fund supports small and medium-sized film companies in adopting virtual production technologies, with the first batch of projects expected to reduce carbon emissions by over 5,000 tons annually [7] Recognition and Future Plans - Following the report's release, the international environmental organization CDP rated the company with a "B" grade, ranking it first among Chinese entertainment companies [8] - The CEO expressed intentions to deepen the ESG strategy, aiming to establish the world's first zero-carbon film base by 2028 and integrate Chinese entertainment industry standards into international climate governance frameworks [8]

Core Viewpoint - The summer box office performance in 2023 has been disappointing, with total earnings just surpassing 5 billion yuan, significantly lower than previous years, prompting a strategic shift in the entertainment industry, particularly for Alibaba's film division, which has rebranded itself to focus on broader entertainment services [1][4][11]. Group 1: Box Office Performance - The summer box office has only reached 5 billion yuan, with only one film, "Nanjing Photo Studio," achieving a daily box office of 260 million yuan [1]. - Compared to the summer box office of 76 billion yuan in 2024, this year's performance is notably weak [1][4]. - The highest-grossing film from the July 18 release, "Chang'an's Lychee," has only reached 500 million yuan, with a projected total of 915 million yuan [4]. Group 2: Strategic Shift - Alibaba's entertainment division has rebranded from "Alibaba Pictures" to "Damai Entertainment," indicating a shift from direct film production to providing entertainment services [3][6]. - This strategic pivot aims to adapt to the changing landscape of consumer attention, where various entertainment sectors compete for audience engagement [3][7]. - The rebranding aligns with a broader trend in the industry, where companies are diversifying their revenue streams beyond box office earnings, which are heavily reliant on hit films [6][12]. Group 3: Revenue and Business Model - The film industry in China is facing challenges, with 90-95% of revenue for domestic companies coming from box office earnings, compared to only 30% for major Hollywood studios [6]. - Damai Entertainment's revenue from film production and marketing has decreased by 9.5%, while its overall revenue from other entertainment services is on the rise [8][9]. - The live performance market has seen significant growth, with ticket sales reaching approximately 57.95 billion yuan, a 15.37% increase year-on-year, indicating a shift in consumer preferences towards live entertainment [7][8]. Group 4: Future Outlook - The future success of Damai Entertainment will depend on its ability to integrate various entertainment services, including live performances and IP derivatives, to create a diversified revenue model [12]. - The company is positioned to leverage its ticketing platform to enhance its IP derivative business, which is becoming increasingly competitive [9][10]. - The overall focus has shifted from solely relying on summer box office performance to expanding the scale of live events and IP economy [9][10].

港股影视股部分走强，欢喜传媒(01003.HK)涨超7%，猫眼娱乐(01896.HK)涨超4%，IMAX中国 (01970.HK)、阿里影业(01060.HK)等跟涨。 ...

已经接近一潭死水的外卖市场，伴随着京东的加入又掀起了新的涟漪，美团、淘宝闪购饿了么与京东外卖的三方混战，让2025年的消费者们又体验到了一 次十年前的互联网扩张红利。 虽然有关于外卖大战对实体餐饮会产生负面影响的问题仍然存在一些争议，但不可否认的是，这给当下外卖市场带来了新的生机和变化。而同样已经稳定 了七八年的电影在线票务平台根据，也是时候迎来第三个玩家让行业发生一些变局了。 2008-2025，电影在线票务发展史 在展望未来之前，我们先简单回顾一下在线票务平台的发展历程。 电影购票线上化率随着中国电影互联网购票的发展，已经从2012年的18.4%发展至 2024年的 86.3%。 2008年3月，格瓦拉生活网在上海正式成立，这也标志着中国电影在线票务进入了1.0时代。 虽然成立时间较早，但是在线购票平台的起步却比较缓慢。相比现在十分方便的在线购票选座，在2008-2012年期间，大多数电商平台仍然是采取的"团购 票"模式进行售票，虽然相比柜台售票更为便宜，但是团购购票码需在影院前台进行兑换后再选座的模式仍然较为繁复，没有体现电商平台的便利优势。 尽管如此，猫眼电影的前身美团电影、淘票票的前身淘宝电影以及多 ...

[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].