Financial Performance - For the fiscal year ending December 31, 2024, total revenue decreased by 14.2% to RMB 4,082.2 million compared to RMB 4,757.4 million in 2023[4] - Gross profit fell by 31.9% to RMB 1,625.0 million from RMB 2,384.9 million year-over-year[4] - Operating profit declined by 82.2% to RMB 195.9 million, down from RMB 1,098.2 million in the previous year[4] - Net profit for the year decreased by 80.0% to RMB 181.9 million, compared to RMB 907.8 million in 2023[4] - Adjusted EBITDA dropped by 71.1% to RMB 361.6 million from RMB 1,249.7 million year-over-year[4] - Revenue from entertainment content services decreased by 14.8% to RMB 1,959.8 million in 2024, compared to RMB 2,300.4 million in 2023[32] - Online entertainment ticketing services revenue dropped by 14.9% to RMB 1,921.6 million in 2024, down from RMB 2,258.6 million in 2023, reflecting a 22.6% decline in the overall Chinese box office[33] - The company's 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 box office performance[25] - Gross profit for the year ended December 31, 2024, was RMB 1,625.0 million, down from RMB 2,384.9 million in 2023[62] - The net profit for the year ended December 31, 2024, was RMB 181.9 million, compared to RMB 907.8 million in 2023[62] - Adjusted net profit decreased from RMB 1,029.0 million in 2023 to RMB 309.6 million in 2024[47] Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.32 per share for the fiscal year ending December 31, 2024, pending shareholder approval[6] - The company aims to distribute no less than 20% of its annual profit attributable to shareholders as dividends for the fiscal years 2025, 2026, and 2027[7] - The board proposed a final dividend of HKD 0.32 per share for the year ending December 31, 2024, compared to no dividend in 2023, subject to shareholder approval[89] Market Performance and Box Office - The total box office for national films in 2024 was RMB 42.502 billion, a decrease of 22.6% from 2023[8] - The company participated in the release of 63 domestic films in 2024, achieving a total box office of approximately RMB 23.2 billion[10] - The company maintained a leading position in the industry with a record high coverage of box office performance for films it promoted[9] - The film "Silent Kill" achieved a box office of 1.351 billion yuan, becoming the runner-up in the summer box office for 2024, and received multiple awards and nominations at the 37th Tokyo International Film Festival and the 19th Changchun Film Festival[16] Strategic Initiatives and Future Plans - The company has a rich pipeline of films scheduled for release, including "Dumpling Queen," "Hunting Gold," and "The Time Traveler," among others, ensuring a diverse and sufficient content reserve[15] - The company plans to strengthen its strategic investment in entertainment content and enhance its market competitiveness through long-term investments in live entertainment and infrastructure[24] - The company aims to explore AI technology integration in film creation and seek new business cooperation opportunities in regions like Hong Kong and Macau[24] - The company is actively exploring AI technology applications in film production and visual storytelling, having developed AI software for script analysis and character creation[19] Marketing and User Engagement - The company continues to enhance its ticketing services, providing support for major artists and events, including international stars like Kanye West and Mariah Carey, further solidifying its market competitiveness[17] - The "Maoyan Professional Version" has seen a historical high in daily visits during the 2025 Spring Festival period, further enhancing its industry influence[20] - The "Maoyan Research Institute" provided in-depth data services and market insights, helping the industry understand audience preferences and consumption habits[21] - The company upgraded its live marketing capabilities, generating over ten million in commercial revenue through enhanced online marketing strategies during the reporting period[19] Financial Position and Assets - Total assets decreased slightly from RMB 12,540.1 million as of December 31, 2023, to RMB 12,505.6 million as of December 31, 2024[50] - Total liabilities reduced from RMB 3,501.8 million in 2023 to RMB 3,457.3 million in 2024, maintaining a stable debt-to-asset ratio[50] - As of December 31, 2024, the company's cash and cash equivalents amounted to RMB 2,378.0 million, primarily held in RMB and USD[52] - The total borrowings as of December 31, 2024, were approximately RMB 470.4 million, with interest rates ranging from 1.95% to 2.85%[53] - The company had unused bank financing of RMB 700.0 million as of December 31, 2024[53] Compliance and Governance - The company maintained compliance with corporate governance codes throughout the reporting period[97] - All directors confirmed adherence to the standard code of conduct regarding securities trading during the reporting period[98] - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2024, and confirmed that they were prepared in accordance with applicable accounting principles[100] - The company's auditor confirmed that the financial figures for the year ended December 31, 2024, were verified, although this does not constitute an audit opinion[101]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 9.27, indicating a potential upside of 21% based on a 2025 target PE of 12x [2]. Core Insights - The 2025 Spring Festival box office in China reached a historical high of HKD 9.51 billion, representing an 18.6% increase compared to the previous year. The average daily box office was HKD 1.36 billion, up 35.3% year-on-year, driven by a 14.7% increase in audience attendance [1]. - The company's film ticketing business is expected to benefit directly from the recovery of the overall box office market, with a strong supply of quality films anticipated to drive demand [7]. - The offline performance sector is also showing significant growth, with a projected 85% increase in ticket sales for live performances in 2024, indicating a robust market environment [7]. Financial Data and Earnings Forecast - Revenue projections for the company are as follows: - 2022: HKD 2,319 million - 2023: HKD 4,757 million - 2024E: HKD 4,140 million - 2025E: HKD 5,001 million - 2026E: HKD 5,594 million - The net profit attributable to the parent company is forecasted to be: - 2022: HKD 233 million - 2023: HKD 1,002 million - 2024E: HKD 308 million - 2025E: HKD 819 million - 2026E: HKD 1,005 million [3][8]. - The earnings per share (EPS) are projected to be: - 2022: HKD 0.20 - 2023: HKD 0.87 - 2024E: HKD 0.27 - 2025E: HKD 0.72 - 2026E: HKD 0.88 [3][8]. Market Data - As of February 5, 2025, the closing price of the company's stock was HKD 7.66, with a market capitalization of HKD 88.19 billion. The stock has a 52-week high of HKD 11.08 and a low of HKD 5.56 [4].

Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [4][18]. Core Insights - The company is projected to face challenges in 2024, with expected revenue of 4.185 billion yuan, a year-over-year decline of 12%. This is attributed to a downturn in the film market and underperformance of certain films. The net profit attributable to shareholders is anticipated to drop to 178 million yuan, a year-over-year decrease of 80.5% [1][7]. - Looking ahead to 2025, the company is expected to see operational improvements, with revenue projected to rebound to 5.266 billion yuan, reflecting a year-over-year growth of 25.8% [1][7]. Financial Projections - Total revenue for 2024 is estimated at 4.185 billion yuan, down from 4.758 billion yuan in 2023, with a projected growth of 5.266 billion yuan in 2025 [3][8]. - The net profit for 2024 is expected to be 178 million yuan, significantly lower than 910 million yuan in 2023, with a recovery to 733 million yuan in 2025 [3][8]. - The earnings per share (EPS) is projected to be 0.16 yuan in 2024, compared to 0.79 yuan in 2023, with an expected increase to 0.64 yuan in 2025 [3][8]. Revenue Breakdown - Online ticketing revenue is expected to decline to 1.944 billion yuan in 2024, a year-over-year decrease of 44%. This includes a projected 1.594 billion yuan from movie ticketing, down 20% due to a weaker film market [7]. - Live performance ticketing revenue is anticipated to grow to 350 million yuan, a year-over-year increase of 29%, benefiting from a strong demand in the live performance sector [7]. - Revenue from entertainment content services is projected to be 2 billion yuan in 2024, down 13% year-over-year, primarily due to underperformance of key films [7]. Profitability Metrics - The gross margin for 2024 is expected to be 40%, a decrease of 10 percentage points from the previous year, influenced by the underperformance of certain films [7]. - The report anticipates an increase in the sales and management expense ratio to 30.5% in 2024, reflecting the impact of declining revenues while some costs remain fixed [7]. Valuation and Target Price - The target price for the company's stock is set at 10.7 HKD, based on a relative valuation method using a price-to-earnings (P/E) ratio of 13 times for 2025 [4][7].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [4]. Core Views - The company is expected to face pressure on its 2024 performance due to insufficient quality content supply in the film market, but a recovery in the broader market could support performance improvement [1][4]. - The online ticketing business is projected to generate revenue of 1.94 billion, a year-on-year decline of 14.2%, while the offline ticketing business shows resilience and growth potential [2]. - The entertainment content service segment is anticipated to achieve revenue of 2.04 billion, down 11.4% year-on-year, primarily due to underperformance of certain film projects [3]. Summary by Sections Online Entertainment Ticketing - The online ticketing business is expected to be impacted by the overall market downturn, with a projected revenue of 1.94 billion, reflecting a 14.2% decline [2]. - The offline ticketing market is showing growth, with ticket sales reaching 39.83 billion in the first three quarters of 2024, representing 79.3% of the total for 2023, and a 22.9% increase in audience attendance [2]. Entertainment Content Services - The entertainment content service segment is projected to generate 2.04 billion in revenue, a decrease of 11.4% year-on-year, mainly due to disappointing box office results from certain films [3]. - The company is involved in producing 35 domestic films in 2024, with a focus on increasing participation in key release periods [3]. Investment Recommendations - The company is positioned as a leading online ticketing platform and domestic film distributor, with an increasing participation in top films expected to enhance profitability [4]. - Adjusted revenue forecasts for 2024 and 2025 are set at 4.18 billion and 5.29 billion, respectively, with adjusted net profits of 233 million and 930 million [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a forecasted investment return exceeding the market benchmark by over 15% in the next 6-12 months [4]. Core Views - The company is expected to face revenue pressure in 2024, with projected revenue of 4.18 billion RMB, a 12% year-on-year decline, primarily due to a decrease in the Chinese film market box office and underperformance of some invested films [1][4]. - The report highlights a potential recovery in the 2025 Spring Festival box office, with specific films like "Detective Chinatown 1900" anticipated to perform well [3][4]. Revenue and Profit Forecast - The company’s online entertainment ticketing revenue is projected to be 1.94 billion RMB in 2024, down 14% year-on-year, which is less than the overall market decline of 22.7% [2]. - Entertainment content service revenue is expected to reach 2.01 billion RMB in 2024, reflecting a 12.7% decrease, with a stable performance anticipated between the first and second halves of the year [3]. - The gross profit margin for 2024 is estimated at 40.3%, with a significant drop in the second half of the year due to high production and promotional costs [3]. Financial Projections - The company’s revenue projections for 2024, 2025, and 2026 are adjusted to 4.2 billion, 4.6 billion, and 5.0 billion RMB respectively, reflecting a slight downward revision [4][5]. - The net profit forecast for 2024 is revised down to 190 million RMB, an 80% decline year-on-year, primarily due to losses from certain film investments [1][4]. Market Position and Strategy - The company is recognized as a leader in the film ticketing business, with strong correlations to the overall film market performance [4]. - The report emphasizes the company's strong film selection capabilities and its strategic partnerships with top artists, which are expected to enhance its market position [2][3].

Investment Rating - The investment rating for the company is "Buy" with a current price of HKD 7.26 and a fair value of HKD 10.73 [5]. Core Views - The company is expected to face pressure in 2024, but there is potential for recovery in 2025 due to an increase in content supply [3][8]. - The overall performance in 2024 is anticipated to decline, primarily due to a weak domestic film market and underperformance of certain films [8][9]. - The company maintains a strong position in the ticketing and film promotion sectors, with expectations of revenue growth in the coming years [10][11]. Financial Summary - **Revenue Forecast**: The company is projected to achieve revenues of RMB 42.62 billion in 2024, RMB 50.19 billion in 2025, and RMB 55.99 billion in 2026, with a year-on-year decrease of 10.42% in 2024 [4][12]. - **Net Profit**: The expected net profit for 2024 is RMB 1.85 billion, significantly down from 2023, but projected to recover to RMB 7.14 billion in 2025 and RMB 9.18 billion in 2026 [4][12]. - **Earnings Per Share (EPS)**: EPS is forecasted to be RMB 0.16 in 2024, increasing to RMB 0.62 in 2025 and RMB 0.80 in 2026 [4][12]. - **Valuation Metrics**: The company is expected to have a P/E ratio of 41.7 in 2024, decreasing to 10.8 in 2025 and 8.4 in 2026 [4][12]. Revenue Breakdown - **Online Entertainment Ticketing Services**: Expected revenues of RMB 20.44 billion in 2024, RMB 24.34 billion in 2025, and RMB 27.02 billion in 2026, with a decline of 9.52% in 2024 [10][12]. - **Entertainment Content Services**: Projected revenues of RMB 20.16 billion in 2024, RMB 23.53 billion in 2025, and RMB 26.42 billion in 2026, reflecting a decrease of 12.37% in 2024 [10][12]. - **Advertising Services and Others**: Anticipated revenues of RMB 2.02 billion in 2024, RMB 2.33 billion in 2025, and RMB 2.56 billion in 2026 [10][12]. Market Position - The company is recognized as a leading player in the ticketing and film promotion industry, with a stable market share in the film ticketing sector and significant growth in the live performance market [9][10].

Group 1 - The core viewpoint is that Hong Kong film stocks are experiencing a strong performance, with notable increases in share prices for companies such as Maoyan Entertainment, Emperor Culture Industry, and Alibaba Pictures [1] - As of the report, Maoyan Entertainment has risen over 8%, while Emperor Culture Industry and Alibaba Pictures have increased by over 4% [1] - The November movie market report from Lighthouse Professional indicates that the total box office revenue in China for November reached 1.877 billion RMB, representing a year-on-year growth of 11.4% [1]

Investment Rating - The report gives a "Recommend" rating for Maoyan Entertainment (01896 HK) with a target price of 11 2 HKD [1][7] Core Views - Maoyan Entertainment is a leading online entertainment ticketing and content service provider in China with major shareholders including Tencent Meituan and Light Chaser Animation [1] - The company's main businesses are online entertainment ticketing (48% of 24H1 revenue) entertainment content services (47%) and advertising other services (5%) [1] - The film industry is expected to recover in 2025 with a new product cycle and Maoyan's film-related business is well-positioned to benefit from this recovery [1][6] - The company's live entertainment ticketing business is a new growth driver with 24H1 concert music festival GMV growing over 3x YoY [1][3] Business Analysis Online Entertainment Ticketing - The online movie ticketing market has stabilized into a "one super one strong" duopoly with Maoyan and Tao Piao Piao dominating [1][104] - Maoyan benefits from strong traffic advantages through its partnerships with Tencent and Meituan [1][115] - The movie ticketing business provides a stable cash flow base while live entertainment ticketing is a high-growth emerging segment [1][3] Entertainment Content Services - Maoyan has proven its film distribution capabilities ranking among the top 3 domestic distributors since 2021 [1][136] - The company's big data from its ticketing platform helps improve film selection and distribution success rates [1][136] - Future growth opportunities lie in deeper participation in film production and distribution including increasing investment shares and attempting more lead production projects [1][3] Industry Outlook - The Chinese film market is expected to recover in 2025 after a challenging 2024 with box office down 22% YoY to 38 4 billion RMB [1][72] - Both domestic and imported films are expected to enter a new release cycle in 2025 with major titles like "Nezha 2" and "Avatar 3" [1][80] - Long-term growth potential remains as China's per capita movie viewing frequency (1 23 times in 2019) is still far below the US level (3 8 times) [1][89] Financial Projections - Revenue is forecasted to grow from 4 04 billion RMB in 2024 to 5 79 billion RMB in 2026 [1][7] - Adjusted net profit is expected to increase from 663 million RMB in 2024 to 1 07 billion RMB in 2026 [1][7] - The target valuation of 12 9 billion HKD is based on 13x 2025 PE [1][7]

Financial Performance - Revenue for the first half of 2024 decreased slightly to RMB 2,170.9 million from RMB 2,196.9 million in the same period of 2023[8] - Gross profit increased to RMB 1,156.2 million in the first half of 2024, up from RMB 1,101.2 million in the first half of 2023[8] - Net profit for the first half of 2024 was RMB 284.8 million, compared to RMB 405.2 million in the first half of 2023[8] - Adjusted EBITDA for the first half of 2024 was RMB 489.7 million, down from RMB 584.4 million in the first half of 2023[8] - Adjusted net profit for the first half of 2024 was RMB 351.8 million, compared to RMB 455.7 million in the first half of 2023[8] - Revenue decreased from RMB 2,196.9 million in H1 2023 to RMB 2,170.9 million in H1 2024, primarily due to a decline in entertainment content services revenue[20] - Online entertainment ticketing revenue increased from RMB 1,015.8 million in H1 2023 to RMB 1,046.1 million in H1 2024, driven by a 13.24% growth in national performance ticket sales[22] - Entertainment content services revenue decreased from RMB 1,100.1 million in H1 2023 to RMB 1,024.1 million in H1 2024, mainly due to a slight decline in box office revenue of domestically produced films[23] - Advertising and other services revenue increased from RMB 81.0 million in H1 2023 to RMB 100.7 million in H1 2024, driven by higher demand from advertisers[26] - Cost of revenue decreased by 7.4% from RMB 1,095.7 million in H1 2023 to RMB 1,014.7 million in H1 2024, primarily due to lower content production and distribution costs[26][27] - Gross profit increased from RMB 1,101.2 million in H1 2023 to RMB 1,156.2 million in H1 2024, with gross margin rising from 50.1% to 53.3%[29] - Sales and marketing expenses increased by 39.9% from RMB 366.0 million in H1 2023 to RMB 512.0 million in H1 2024, mainly due to higher marketing and promotion expenses[30] - General and administrative expenses decreased slightly by 1.7% from RMB 186.7 million in H1 2023 to RMB 183.6 million in H1 2024, remaining relatively stable[31] - Net impairment loss on financial assets for the first half of 2024 was RMB 48.1 million, compared to RMB 35.3 million in the same period of 2023[32] - Other income for the first half of 2024 was RMB 25.8 million, down from RMB 26.3 million in the first half of 2023, while other losses increased by 48.8% to RMB 31.4 million due to higher foreign exchange losses[33] - Operating profit for the first half of 2024 was RMB 406.9 million, a decrease from RMB 518.4 million in the same period of 2023[34] - Net finance income for the first half of 2024 was RMB 48.9 million, up from RMB 30.7 million in the first half of 2023, driven by improved fund management efficiency[35] - Income tax expenses for the first half of 2024 increased to RMB 166.6 million from RMB 134.9 million in the same period of 2023, mainly due to changes in tax rates for certain subsidiaries[37] - Adjusted net profit for the first half of 2024 was RMB 351.8 million, adjusted for share-based compensation and amortization of intangible assets from business combinations[40] - EBITDA for the first half of 2024 was RMB 467.1 million, down from RMB 578.7 million in the same period of 2023, while adjusted EBITDA was RMB 489.7 million[42] - Revenue for the first half of 2024 was RMB 2,170,895 thousand, a slight decrease from RMB 2,196,877 thousand in the same period of 2023[86] - Gross profit increased to RMB 1,156,171 thousand in H1 2024, up from RMB 1,101,182 thousand in H1 2023[86] - Operating profit declined to RMB 406,905 thousand in H1 2024, compared to RMB 518,387 thousand in H1 2023[86] - Net profit attributable to owners of the company was RMB 284,827 thousand in H1 2024, down from RMB 405,176 thousand in H1 2023[86] - Basic earnings per share decreased to RMB 0.25 in H1 2024 from RMB 0.36 in H1 2023[86] - Net profit for the six months ended June 30, 2024, was RMB 284.8 million, a decrease from RMB 405.2 million in the same period in 2023[87] - Total comprehensive income for the period was RMB 177.6 million, down from RMB 465.0 million in 2023[87] - The fair value change of financial assets, net of tax, resulted in a loss of RMB 132.7 million, compared to a gain of RMB 8.4 million in 2023[87] - Net profit for the period was RMB 406.646 million[93] - Total comprehensive income for the period was RMB 466.45 million[93] - Revenue from online entertainment ticketing services for the six months ended June 30, 2024, was RMB 1,046,119,000, compared to RMB 1,015,845,000 in the same period in 2023[152] - Revenue from entertainment content services for the six months ended June 30, 2024, was RMB 1,009,174,000, compared to RMB 1,091,872,000 in the same period in 2023[152] - Revenue from advertising services and others for the six months ended June 30, 2024, was RMB 100,747,000, compared to RMB 80,958,000 in the same period in 2023[152] - Revenue from customer contracts under IFRS 15 was RMB 2,156,040 thousand, a slight decrease from RMB 2,188,675 thousand in the previous period[153] - R&D expenses for the six months ended June 30, 2024, were RMB 100,553 thousand, down from RMB 112,148 thousand in the same period last year[154][155] - Marketing and promotion expenses amounted to RMB 377,776 thousand, while internet infrastructure costs were RMB 285,267 thousand[156] - Government subsidies increased to RMB 25,831 thousand from RMB 22,143 thousand in the previous year[157] - Net financial income rose to RMB 48,894 thousand from RMB 30,718 thousand, driven by higher interest income from bank deposits and third-party loans[158] - Income tax expenses increased to RMB 166,599 thousand, up from RMB 134,929 thousand, due to higher current tax payments[159] - Basic earnings per share (EPS) for the period was RMB 0.25, calculated based on a weighted average of 1,147,510 thousand shares[160] - Diluted earnings per share for the period were RMB 0.25, calculated based on a weighted average number of shares of 1,146,975 thousand shares[163] - The company's profit attributable to owners for the period was RMB 284,827 thousand[163] - The weighted average number of shares outstanding was 1,144,674 thousand shares, with adjustments for share-based compensation including 211 thousand share options and 6,915 thousand restricted share units[163] Box Office and Film Distribution - Mainland China box office (including service fees) for the first half of 2024 was RMB 23.903 billion, a year-on-year decrease of 9.02%[9] - The company participated in the distribution of 31 domestic films in the first half of 2024, with several performing exceptionally well[10] - The company participated in the distribution/production of 32 domestic films in the first half of 2024, including 4 of the top 5 box office films[11] - The company's self-distributed film "Pegasus 2" achieved a box office of RMB 3.398 billion, ranking second in the Spring Festival box office[11] - The company has a diverse and extensive film reserve, including titles like "The Last Frenzy" and "The Art of Hot Pot," set for future release[11] - As of August 25, 2024, the summer box office exceeded 11 billion yuan, with the cumulative annual box office reaching 32.8 billion yuan[16] - Box office revenue payables increased significantly to RMB 974.544 million as of June 30, 2024, compared to RMB 434.851 million as of December 31, 2023[180] Concert and Performance Services - The company provided services for over 3,000 concert projects, including top artists like Jacky Cheung, Andy Lau, and Jay Chou, with concert and music festival GMV growing approximately 3 times year-over-year[13] - Local performance coverage exceeded 95%, and the company supported cultural惠民 activities in multiple provinces, driving local cultural tourism consumption[13] - The company expanded its services to new regions, including Macau, and explored cooperation scenarios in Southeast Asia, the Middle East, and Latin America, establishing deep partnerships with super apps[13] - The company's online movie ticketing business remained stable, and it continued to serve as the official ticketing platform for the Beijing International Film Festival for the fourth consecutive year[13] - The company established a subsidiary, Hong Kong Maoyan Live Entertainment Limited, to operate overseas online ticketing business[82] - The company launched the ticketing platform UUTIX in Hong Kong for self-operated performance ticketing business[82] - The company registered a series of trademarks in Hong Kong[82] AI and Technology Development - The company developed AI-related film creation software, improving efficiency in script analysis and character creation, and collaborated with AI companies to explore applications in animation and visual storytelling[14] - The company's "Maoyan Professional Edition" enhanced data visualization capabilities and launched a PC version, providing more comprehensive data services and tools for industry partners[15] - The company will continue to explore the application of AI technology and expand its overseas business布局, seeking new growth opportunities[16] Financial Position and Assets - Total assets increased to RMB 13,242.9 million as of June 30, 2024, from RMB 12,540.1 million at the end of 2023, while total liabilities rose to RMB 4,004.4 million from RMB 3,501.8 million[43] - The asset-liability ratio increased to 30.2% as of June 30, 2024, up from 27.9% at the end of 2023[43] - RMB 250.0 million of bank deposits were pledged as collateral for bank loans as of June 30, 2024[43] - Cash and cash equivalents, along with other forms of bank deposits, amounted to RMB 3,925.4 million as of June 30, 2024, primarily denominated in RMB and USD[44] - Total borrowings as of June 30, 2024, were approximately RMB 477.3 million, all in RMB-denominated bank loans[44] - Unused bank financing facilities totaled RMB 472.7 million as of June 30, 2024[45] - Capital expenditures decreased by 14.9% from RMB 7.4 million in the first half of 2023 to RMB 6.3 million in the first half of 2024[46] - The company holds a 5.7% equity interest in Huanxi Media Group Limited as of June 30, 2024[48] - The company had 866 full-time employees as of June 30, 2024, primarily located in Beijing, with others in Shanghai and other cities in China[50] - The company did not enter into any forward contracts or other financial instruments to hedge foreign exchange risk exposure in the first half of 2024[49] - The company plans to use cash generated from operations to fund planned capital expenditures[46] - The company maintains a net cash position as of June 30, 2024, and December 31, 2023[45] - The company did not have any significant contingent liabilities as of June 30, 2024[45] - Total assets as of June 30, 2024, increased to RMB 13.24 billion from RMB 12.54 billion at the end of 2023[88] - Retained earnings as of June 30, 2024, rose to RMB 972.9 million from RMB 687.8 million at the end of 2023[88] - Total liabilities as of June 30, 2024, increased to RMB 4.00 billion from RMB 3.50 billion at the end of 2023[89] - The company's equity attributable to owners increased to RMB 9.24 billion as of June 30, 2024, from RMB 9.04 billion at the end of 2023[91] - The fair value change of financial assets measured at fair value through other comprehensive income resulted in a loss of RMB 132.7 million, net of tax[91] - The company's cash and cash equivalents as of June 30, 2024, were RMB 2.15 billion, slightly up from RMB 2.14 billion at the end of 2023[88] - The company's intangible assets as of June 30, 2024, were RMB 4.81 billion, down from RMB 4.86 billion at the end of 2023[88] - Cash generated from operating activities was RMB 1.763 billion[94] - Net cash used in investing activities was RMB 558.287 million[94] - Net cash from financing activities was RMB 219.155 million[96] - Cash and cash equivalents at the end of the period were RMB 3.233 billion[96] - The company issued new shares under the share option plan, totaling RMB 15,000[93] - The company incurred share-based payment expenses of RMB 5.404 million[93] - The company purchased financial assets at fair value through profit or loss for RMB 406.75 million[94] - The company sold financial assets at fair value through profit or loss, receiving RMB 362.421 million[94] - The company has not adopted new and revised standards and interpretations issued by the International Accounting Standards Board, which will become effective for annual periods beginning on or after January 1, 2024[101] - The company will adopt the new or revised standards, amendments, and interpretations of existing International Financial Reporting Standards (IFRS) when they become effective, with no significant impact expected on the financial position or operating performance[102] - The company controls its subsidiary, Maoyan Entertainment (Hong Kong) Limited, through contractual arrangements with Tianjin Maoyan Weiyi Technology Co., Ltd., allowing it to exercise effective control and receive economic benefits from the operating entities[104] - The company does not hold any equity in the operating entities but is considered to have control due to the contractual arrangements, allowing it to consolidate the financials of these entities[105] - The company faces financial risks including market risk (foreign exchange, fair value interest rate, and price risk), credit risk, and liquidity risk[107] - The company's credit risk primarily arises from cash and cash equivalents, restricted bank deposits, term deposits with original maturities exceeding three months, and receivables[108] - The company manages risks related to cash, cash equivalents, restricted bank deposits, and fixed-term deposits by only transacting with reputable financial institutions in Hong Kong and mainland China, which have no recent default records[109] - The company has a diversified debtor base, eliminating credit concentration risk, and has established monitoring procedures to follow up on overdue debts[109] - The company reviews the recoverability of trade and other receivables at the end of each reporting period to ensure adequate impairment losses for irrecoverable amounts[109] - The company classifies receivables based on credit risk characteristics and aging, with expected loss rates adjusted for macroeconomic factors affecting customer repayment ability[111] - As of June 30, 2024, the expected loss rates for receivables were 7.58% for current, 13.90% for overdue within 3 months, 21.72% for overdue 3-6 months, 34.78% for overdue 6-12 months, and 75.42% for overdue over 1 year[113] - The total impairment provision for receivables as of June 30, 2024, was RMB 410.189 million, compared to RMB 370.282 million as of December 31, 2023[118] - The company identified "urban per capita disposable income" in China as the most relevant factor affecting the ability of customers to settle receivables, adjusting historical loss rates accordingly[111] - The company uses a simplified method under IFRS 9 to calculate expected credit losses, applying a lifetime expected loss provision for all receivables[111] - The company writes off receivables when there is no reasonable expectation of recovery, such as when debtors fail to agree on a repayment plan[118] - The expected credit loss rate for Stage 2 receivables is 48.66%, while for Stage 3, it is 100.00%[123] - The total expected credit loss provision for other receivables as of June 30, 2024, is RMB 450,338 thousand, with the largest provision for online entertainment ticketing, e-commerce, and other service deposits at RMB 233,596 thousand[125] - The total book value of other receivables as of June 30, 2024, is RMB 1,423,040 thousand, with the largest category being online entertainment ticketing, e-commerce, and other service deposits at RMB 807,994 thousand[125] - The expected credit loss provision for third-party loans is RMB 140,517 thousand, with RMB 116,781 thousand allocated to Stage 3[125] - The expected credit loss provision for film and TV series investment receivables is RMB 60,026 thousand, with RMB 59,611 thousand allocated to Stage 3[125] - The expected credit loss provision for receivables from related parties is RMB 4,852 thousand, with RMB 4,727 thousand allocated to Stage 3[125] - The total book

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 2.171 billion in the first half of 2024, a year-on-year decline of 1.2%. The net profit was 285 million, down 29.7%, while the adjusted net profit was 352 million, down 22.8%. The adjusted EBITDA was 490 million, down 16.2% [5][6]. - The offline performance market has shown strong recovery, significantly aiding the company's online entertainment ticketing business growth. The offline performance market in China saw a revenue increase of 13.24% year-on-year in the first half of 2024, with audience numbers up by 27.10%. The company managed to maintain growth in its online ticketing business, achieving a revenue of 1.046 billion, a 3.0% increase [5][6]. - The company's content selection capabilities have improved, but the weak performance of the film market has negatively impacted its entertainment content service business. The company participated in the release of 31 domestic films in the first half of 2024, with notable box office performances from several films. However, the overall film market saw a decline of 9.01%, affecting the company's entertainment content service revenue, which was 1.024 billion, down 6.9% [5][6]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 2.171 billion, a decline of 1.2% year-on-year. The net profit was 285 million, down 29.7%, and the adjusted net profit was 352 million, down 22.8%. The adjusted EBITDA was 490 million, down 16.2% [5][6]. Market Analysis - The offline performance market in China has shown a strong recovery, with ticket sales reaching 19.016 billion, a year-on-year increase of 13.24%. The company has expanded its services to over 3,000 concert projects, with a local performance coverage rate exceeding 95% [5][6]. Content Strategy - The company has enhanced its content selection capabilities and extended its industry chain layout. In the first half of 2024, it participated in the release of 31 domestic films, achieving significant box office results for several titles. However, the overall film market's decline has impacted its entertainment content service revenue [5][6]. Future Outlook - The company is committed to deepening its engagement in the full entertainment industry and actively building competitive barriers. It plans to leverage its strong data analysis capabilities and rich content reserves to enhance growth potential in the future [6].