Core Viewpoint - The company's 2024 performance is in line with expectations, with a significant decline in both revenue and net profit, but a potential recovery in ticket sales is anticipated for 2025 [1][2]. Financial Performance - The company reported a revenue of 4.08 billion yuan for 2024, a year-on-year decrease of 14.2%, falling within the forecast range of 4.05 to 4.15 billion yuan [1]. - Net profit for 2024 was 180 million yuan, down 80.0% year-on-year, also within the forecast range of 150 to 200 million yuan [1]. - Non-IFRS net profit was 310 million yuan, aligning with expectations [1]. Industry Trends - The main business is expected to decline in 2024 due to market pressures, with a focus on the recovery trend of ticket sales [1]. - The forecast for the 2025 film box office is 55 billion yuan, suggesting a potential recovery in ticket sales revenue of 25% to 30% year-on-year [1]. - The average ticket price increase and the performance of imported films may impact this recovery [1]. - The live performance ticketing sector is projected to grow by 15.4% year-on-year in 2024, with an expected industry growth rate of over 10% in 2025 [1]. Content Production - The company has a rich pipeline of films, with 63 domestic films produced in 2024, indicating a strong selection and data capability [2]. - Key films to watch include "The Lychee of Chang'an" and others scheduled for release in 2024, which may provide profit elasticity [2]. Shareholder Returns - The company announced its first dividend, proposing a final dividend of 0.32 HKD per share for the year ending December 31, 2024, with a dividend yield exceeding 4% based on the closing price [3]. - A three-year dividend plan aims to distribute at least 20% of net profit each fiscal year, reflecting a commitment to shareholder returns [3]. - The total amount for dividends and buybacks in 2024 is expected to account for 50% of retained earnings [3]. Profit Forecast and Valuation - Due to pressure on actual ticket sales and a rigid recovery in gross margins, the Non-IFRS net profit forecasts for 2025 and 2026 have been reduced by 32.9% and 31.6% to 695 million and 802 million yuan, respectively [3]. - The current price corresponds to 11.9 and 10.2 times Non-IFRS P/E for 2025 and 2026 [3]. - The target price is maintained at 10.2 HKD, suggesting a 33.0% upside potential based on the adjusted profit forecasts and improving content supply in the industry [3].

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, attributed to a weak film market performance, but showed resilience in online ticketing services and content distribution capabilities [1][2]. Group 1: Financial Performance - The company achieved a revenue of 4.082 billion yuan in 2024, representing a year-over-year decline of 14.2%, with an adjusted net profit of 310 million yuan [1]. - The company announced a dividend of 0.32 HKD per share and a dividend plan for 2025-2027, targeting to distribute no less than 20% of the fiscal year's net profit [1]. Group 2: Market Performance - The overall film market in China saw a total box office of 42.502 billion yuan in 2024, down 23% year-over-year, with total audience attendance decreasing by 22% to 1.01 billion [1]. - The company's online entertainment ticketing service revenue fell by 14.9% to 1.922 billion yuan, although this decline was less severe than the overall film market, benefiting from increased market share and rapid growth in live entertainment revenue [1]. Group 3: Content and Distribution - The company participated in 63 domestic films released in 2024, achieving a cumulative box office of approximately 23.2 billion yuan, marking a historical high in both the number of films and market coverage [2]. - The company maintained strong content distribution capabilities, with six of the top ten domestic films in 2024 under its control, including the successful release of "Detective Chinatown 1900" during the Spring Festival [2]. - The company has a rich content pipeline for 2025, including films like "The Lychee of Chang'an" and "Dumpling Queen," which are expected to be released within the year [2]. Group 4: Profit Forecast - The company forecasts adjusted net profits of 652 million yuan, 860 million yuan, and 938 million yuan for 2025-2027, reflecting year-over-year growth rates of 111%, 32%, and 9% respectively, maintaining a "buy" rating [2].

Core Viewpoint - The company reported a revenue of 4.082 billion yuan in 2024, a year-over-year decrease of 14.2%, with a significant drop in net profit by 80% to 182 million yuan, aligning with previous guidance [1][2][3] Group 1: Financial Performance - Revenue breakdown: Entertainment content service revenue was 1.960 billion yuan (down 14.8% YoY), online entertainment ticketing service revenue was 1.922 billion yuan (down 14.9% YoY), and advertising services and other revenue was 200 million yuan (up 1.2% YoY) [1] - The company announced a dividend plan for 2024, proposing a payout of 0.32 HKD per share, totaling approximately 369 million HKD, which corresponds to a dividend yield of about 4.4% [2] - Adjusted net profit for 2024 was 310 million yuan, a decrease of 70% YoY [1][3] Group 2: Business Segments - The film ticketing sector faced challenges, with a 23% YoY decline in the overall box office, impacting ticketing revenue significantly [1] - The company participated in 63 domestic films in 2024, achieving a box office of 23.2 billion yuan, marking a historical high in participation and market coverage [1] - Live performance revenue grew by 15% YoY, with concert ticketing GMV increasing by approximately 90%, indicating a strong market position [1] Group 3: Future Outlook - The film industry is expected to recover in 2025, with several films scheduled for release, including "Dumpling Queen" and "Lychee of Chang'an," which may positively impact ticketing and content investment [2] - The company aims to maintain a dividend policy of at least 20% of annual net profit for 2025-2027, indicating a commitment to shareholder returns [2] - Revenue projections for 2025-2027 are adjusted to 4.898 billion, 5.399 billion, and 5.835 billion yuan, with expected net profit growth of 121%, 13%, and 12% respectively [3]

Core Viewpoint - The company reported a significant decline in revenue and net profit for the year 2024, primarily due to underperformance in film box office and a decrease in the overall Chinese film market [1][2]. Revenue Summary - The company achieved a total revenue of 4.082 billion yuan in 2024, a year-on-year decrease of 14.19% [1]. - Revenue breakdown: - Entertainment content services accounted for 48% of total revenue, generating 1.96 billion yuan, down 14.8% year-on-year [1]. - Online entertainment ticketing services contributed 47.1% with 1.922 billion yuan, a decline of 14.9% [1]. - Advertising services and others made up 4.9% with revenue of 201 million yuan, an increase of 1.2% [1]. Profit Summary - The company reported a net profit attributable to shareholders of 182 million yuan, a significant decrease of 80.02% year-on-year [1]. - Adjusted net profit was 310 million yuan, down 69.9% compared to the previous year [1]. Film Participation and Market Coverage - In 2024, the company participated in 63 domestic films, with 36 films under its direct control, achieving a total box office of 23.2 billion yuan [2]. - The company was involved in 8 out of the top 10 domestic films by box office in 2024, marking a historical high in participation and market coverage [2]. - Upcoming projects include the 3D animation "Time's Child" set to release on May 30, 2025, along with several other films in various stages of development [2]. Live Performance Market - The offline performance market saw record highs in both total attendance and GMV in 2024 [3]. - The company provided ticketing services for major domestic artists and international stars, enhancing its competitive edge [3]. - The company is expanding its ticketing services in Southeast Asia, the Middle East, and Latin America, aiming to strengthen its market position [3]. - Continuous updates to the "Maoyan Professional Version" and "Maoyan Research Institute" are being made to explore AI and film collaboration opportunities [3].

Group 1 - Company is a leading "technology + full entertainment" service provider in China, with a strong market position in online entertainment ticketing, entertainment content services, and advertising services [1] - Company holds a 60% market share in the film ticketing sector, making its performance highly sensitive to the film market [1] - Recent years have seen significant volatility in the film market due to the pandemic and supply cycles, impacting the company's performance [1] Group 2 - In 2024, company reported revenue of 4.082 billion yuan, a decrease of 14% year-on-year, primarily due to insufficient quality supply in the film market, with total box office down 22.6% to 42.5 billion yuan [2] - Entertainment content services revenue was 1.960 billion yuan, down 14.8% year-on-year, while online ticketing services revenue was 1.922 billion yuan, down 14.9% year-on-year [2] - Despite the decline in film ticketing, the live performance market grew, with ticket sales reaching 58 billion yuan, up 15%, and concert GMV increasing by 90% [2] Group 3 - Company achieved a net profit of 182 million yuan in 2024, a decline of 80%, attributed to increased costs from ticketing and poor performance of key films [3] - The company actively returned value to shareholders, repurchasing 50 million HKD worth of shares and maintaining a dividend of 0.32 HKD per share, yielding approximately 4.3% [3] - Future film releases are promising, with several projects in the pipeline, indicating potential for improved performance in key release periods [3] Group 4 - The film market is expected to recover in 2025, driven by the release of "Nezha 2," with an estimated total box office of 50 billion yuan [4] - Company forecasts revenue growth from 4.795 billion yuan in 2025 to 5.967 billion yuan in 2027, with corresponding net profit growth from 566 million yuan to 843 million yuan [4] - Based on comparable companies, a target price of 7.48-8.55 HKD is set, with an "outperform" rating assigned [4]

Core Viewpoint - The 2025 May Day holiday box office has exceeded 500 million yuan, with the film "Dumpling Queen" leading the charts, indicating a strong recovery and growth in the Chinese film market [1][8]. Box Office Performance - As of May 3, 2025, the total box office for the May Day period (May 1-5) reached 500 million yuan, with a total of 12.61 million tickets sold and an average ticket price of 39.6 yuan [3][6]. - The top three films during this period are "Dumpling Queen" (12.30 million yuan, 24.6% market share), "Hunting Gold: Game" (8.53 million yuan, 17.0% market share), and "Princess Mononoke" (4.88 million yuan, 9.8% market share) [6][8]. Film Details - "Dumpling Queen," released on April 30, 2025, is a drama based on the true story of Zang Jianhe, who rises from hardship to success through her dumpling business. The film is produced by companies including China Film, Maoyan Entertainment, and Alibaba Pictures [8]. - "Hunting Gold: Game," which premiered on May 1, 2025, focuses on the dark side of investment banking and is produced by Maoyan Entertainment [8]. - "Thunder Team," also released on April 30, 2025, is an action/adventure film featuring a team of anti-heroes [9]. Industry Growth - The Chinese film market has shown robust growth, with the first quarter of 2025 achieving a box office of 2.44 billion yuan, a year-on-year increase of 49.08%, and 520 million viewers, up 43.07% [10]. - The 2025 Spring Festival box office reached 9.51 billion yuan, setting new records for both box office and viewer numbers during this period [10]. Company Performance - Several film companies reported significant growth in their first-quarter earnings due to the strong performance of films like "Nezha 2." For instance, Light Media reported a revenue of 2.98 billion yuan, a year-on-year increase of 177.87%, and a net profit of 2.02 billion yuan, up 374.79% [10].

Core Viewpoint - The article highlights the strong box office performance of films during the May Day holiday period in 2025, with a total box office exceeding 400 million yuan, indicating a robust recovery and interest in the film industry [1][4]. Group 1: Box Office Performance - As of May 3, 2025, the total box office (including pre-sales) for the May Day holiday period has surpassed 400 million yuan, with the film "Dumpling Queen" leading the box office [1]. - The top three films during this period are "Dumpling Queen," "Hunting Gold: Game," and "Princess Mononoke" [1]. - "Dumpling Queen" is projected to exceed 400 million yuan in total box office, potentially becoming the box office champion for the May Day holiday [4]. Group 2: Film Details - "Dumpling Queen," directed by Liu Weiqiang and starring Ma Li, Hui Yinghong, and Zhu Yawen, is based on the true story of Zang Jianhe, who rises from hardship to success through her dumpling business [5]. - The film's production companies include China Film, Maoyan Entertainment, and Alibaba Pictures, indicating strong industry backing [5]. - "Hunting Gold: Game," set to release on May 1, focuses on the dark side of capital markets through the story of a finance graduate who uncovers investment traps [6]. - "Thunder Strike Team," released on April 30, features a team of anti-heroes facing dangerous missions, with distribution involvement from companies under China Film [6].

Core Insights - The ticketing system application industry in China is experiencing continuous growth driven by the rapid economic development and upgrading of consumer spending structures, with a market size projected to increase from approximately 328.22 billion yuan in 2022 to 407.83 billion yuan by 2024, indicating a strong growth potential [1][11]. Industry Definition and Classification - Ticketing system applications are software solutions based on computer and network technologies aimed at automating ticket management, sales, verification, and data analysis across various sectors such as events, performances, sports, tourism, and public transportation [2][4]. Industry Chain Analysis - The industry chain of ticketing systems consists of upstream technology and data support, midstream system development and operation, and downstream application scenarios and end-users, ensuring efficient service and stable operation [4]. Development History - The industry has evolved through three stages: initial manual operations in the 1980s-90s, the development phase with the rise of online platforms in the early 2000s, and the current mature phase characterized by mobile and intelligent advancements [6]. Current Industry Status - In 2022, the sales volume of performance tickets reached 71.62 million, with an average ticket price increasing from 100.5 yuan in 2013 to 125.5 yuan in 2022, reflecting a growing demand for ticketing systems to meet higher technical requirements [9][13]. Key Enterprises Analysis - Major players in the industry include Ctrip, Maoyan Entertainment, and Damai, each leveraging their strengths in technology and market presence to cater to diverse consumer needs, while also engaging in collaborations and mergers to foster innovation [15][19]. Future Development Trends - The industry is expected to see trends such as the rise of mobile and contactless services, cross-industry integration, and enhanced user experience optimization, driven by advancements in technology and changing consumer preferences [21][22][24].

Financial Performance - Revenue decreased by 14.2% from RMB 4,757.4 million in 2023 to RMB 4,082.2 million in 2024[9] - Gross profit fell by 31.9% from RMB 2,384.9 million in 2023 to RMB 1,625.0 million in 2024[9] - Net profit for 2024 was RMB 181.9 million, a decline of 80.0% compared to RMB 907.8 million in 2023[9] - Adjusted EBITDA decreased by 71.1% from RMB 1,249.7 million in 2023 to RMB 361.6 million in 2024[9] - Revenue decreased by 14.2% from RMB 4,757.4 million in 2023 to RMB 4,082.2 million in 2024, primarily due to insufficient supply of major films and a decline in overall box office performance[31] - Gross profit fell by 31.9% from RMB 2,384.9 million in 2023 to RMB 1,625.0 million in 2024, with gross margin decreasing from 50.1% to 39.8%[39] - Revenue from entertainment content services decreased by 14.8% from RMB 2,300.4 million in 2023 to RMB 1,959.8 million in 2024[33] - Online entertainment ticketing service revenue declined by 14.9% from RMB 2,258.6 million in 2023 to RMB 1,921.6 million in 2024, with the total box office in China for 2024 reported at RMB 42.5 billion, a 22.6% decrease from 2023[34] - Operating profit for 2024 was RMB 195.9 million, significantly down from RMB 1,098.2 million in 2023[44] - Other income decreased by 13.5% to RMB 44.2 million in 2024 from RMB 51.1 million in 2023, mainly due to a reduction in tax credits[43] - Income tax expense decreased to RMB 119.4 million in 2024 from RMB 245.8 million in 2023, mainly due to the decline in operating profit[46] - Adjusted net profit for 2024 was RMB 309.6 million, compared to RMB 1,029.0 million in 2023[50] - EBITDA for 2024 was RMB 322.6 million, a decrease from RMB 1,219.7 million in 2023[51] Box Office and Film Performance - The total box office for national films in 2024 was RMB 42.502 billion, down 22.6% from 2023[10] - The company participated in 63 domestic films in 2024, achieving a total box office of approximately RMB 23.2 billion[14] - The company controlled the distribution of 36 domestic films, setting historical highs in both quantity and box office share[15] - The company’s films ranked first in box office during major holiday periods in 2024, including New Year's Day and the Dragon Boat Festival[16] - The film "Silent Kill" achieved a box office of 1.351 billion yuan, becoming the second highest-grossing film of the summer 2024 season and received multiple awards and nominations at the 37th Tokyo International Film Festival and the 19th Changchun Film Festival[20] - The total box office in China reached RMB 24.2 billion as of March 26, 2025, with a record RMB 9.51 billion during the Spring Festival period, marking a historic high[27] Market and Strategic Initiatives - The revenue from live performance market increased by 15.37% to RMB 57.954 billion in 2024[10] - The company enhanced its promotional capabilities through collaborations with platforms like Baidu and Tencent, integrating AI technology into film marketing[14] - The company plans to enhance its strategic investment in entertainment content and strengthen its market position in film promotion and distribution[29] - The company aims to explore AI technology integration in film creation and expand commercial cooperation in regions like Hong Kong and Macau[29] - The company will continue to focus on the long-term development of animation films and maintain its competitive edge in the live entertainment sector[29] - The company aims to increase long-term investment in live entertainment and improve infrastructure and service capabilities to enhance market competitiveness[98] - The company will explore new growth opportunities, including collaborations in AI technology and new scene partnerships with cinemas[98] Cost and Expenses - The cost of revenue increased by 3.6% from RMB 2,372.5 million in 2023 to RMB 2,457.2 million in 2024, driven by rising content production and internet infrastructure costs[37] - Sales and marketing expenses increased by 11.5% from RMB 842.5 million in 2023 to RMB 939.8 million in 2024, attributed to higher marketing and promotional costs[40] Employee and Management - The company employs 896 full-time employees, primarily located in Beijing, Shanghai, and other cities in mainland China[63] - The company participates in various employee social security plans, contributing a specific percentage of employee salaries to these plans[64] - The company has a competitive compensation and benefits system, continuously improving its salary and incentive policies[63] - The company plans to continue granting share-based rewards to motivate employees for growth and development[63] - The company has a commitment to employee training to keep staff updated on industry developments and technological advancements[63] Shareholder and Dividend Information - The board proposed a final dividend of HKD 0.32 per share for the year ending December 31, 2024, subject to shareholder approval on June 25, 2025[110] - The company aims to distribute no less than 20% of the profit attributable to shareholders for the fiscal years 2025, 2026, and 2027, based on its dividend policy[112] - The company repurchased a total of 7,099,800 shares at a total cost of approximately HKD 49.75 million during the year ending December 31, 2024[123] - The repurchase aimed to enhance long-term shareholder value[123] Compliance and Governance - The company has adhered to all relevant Chinese laws and regulations without facing any compliance issues that could adversely affect its business or financial condition[102] - The company has received annual independence confirmation letters from all independent non-executive directors, confirming their independence[129] - The company has established a remuneration committee to determine director remuneration, which requires shareholder approval at the annual general meeting[134] Related Party Transactions - The annual cap for the film and television investment production cooperation framework agreement with Light Media Group is RMB 181.5 million, with actual transaction amount for the year ending December 31, 2024, being approximately RMB 8.8 million[184] - The annual cap for the film and television promotion framework agreement with Light Media Group is RMB 111.3 million, with actual transaction amount for the year ending December 31, 2024, being approximately RMB 99.3 million[187] - The annual cap for related transactions with Tencent Group for film and television promotion services is set at RMB 256.8 million, with actual transaction amounts around RMB 0.2 million as of December 31, 2024[195]

Investment Rating - The report assigns an "Outperform" rating to the company for the first time [6] Core Views - The company is a leading provider of "technology + full entertainment" services in China, with a strong market position in online ticketing and film distribution, holding a 60% market share in movie ticketing [1][7] - The company's revenue for 2024 is projected to decline by 14% to 4.08 billion yuan, primarily due to a lack of quality film supply and a significant drop in the overall box office [2][25] - Despite short-term performance pressures, the company is actively returning capital to shareholders, with a buyback of 50 million HKD and a dividend of 0.32 HKD per share, corresponding to a yield of approximately 4.3% [3][26] Summary by Sections Financial Performance - In 2024, the company achieved a net profit of 182 million yuan, a decrease of 80% year-on-year, mainly due to increased costs associated with ticketing and poor performance of key films [3][26] - The company expects revenue growth from 2025 to 2027, with projected revenues of 4.80 billion, 5.41 billion, and 5.97 billion yuan, representing year-on-year growth of 17%, 13%, and 10% respectively [4][29] Market Outlook - The overall film market is expected to recover in 2025, driven by the release of "Nezha 2," with an estimated total box office of 50 billion yuan, a year-on-year increase of 18% [4][29] - The company has a robust pipeline of upcoming films, with several titles already scheduled for release, indicating potential for improved performance in key release periods [27][28] Competitive Position - The company maintains a strong competitive position in the online ticketing market, with a market share of approximately 60%, supported by significant shareholder resources and partnerships with major platforms like Tencent and Meituan [20][21] - In the content service sector, the company has increased its market share in film distribution, achieving nearly 50% in 2023, despite challenges in 2024 [21][25]