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]

财联社12月10日电，截至发稿，猫眼娱乐(01896.HK)涨8.98%、英皇文化产业(00491.HK)涨4.55%、阿里 影业(01060.HK)涨3.30%。 消息面上，灯塔专业版发布11月电影市场报告称，今年11月全国电影总票房达到18.77亿元人民币，同 比增长11.4%。 ...

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 report maintains a "Buy" rating for the company, considering its leading position in the ticketing business and strong selection capabilities despite a downward adjustment in revenue and profit forecasts for 2024-2026 [2][6]. Core Insights - The company's ticketing business remains robust, with online entertainment ticketing revenue of 1.046 billion RMB, accounting for 48.2% of total revenue, showing a year-on-year increase of 3.0% [2]. - The overall revenue for the first half of 2024 was 2.171 billion RMB, a decrease of 1.2% year-on-year, while gross profit increased by 5.0% to 1.156 billion RMB, resulting in a gross margin of 53.3% [2]. - Adjusted EBITDA reached 490 million RMB, down 16.2% year-on-year, and adjusted net profit was 352 million RMB, a decrease of 22.8% due to increased sales expenses from film subsidies [2]. Summary by Sections Ticketing Business Performance - The ticketing business is driven by steady growth in live performances, with the offline performance market showing a 13.2% year-on-year increase in ticket revenue, reaching 19.016 billion RMB in the first half of 2024 [2]. - The company has strengthened collaborations across the cinema industry and expanded its service capabilities, enhancing multi-platform synergy [2]. Entertainment Content Services - Revenue from entertainment content services was 1.024 billion RMB, a decrease of 6.9% year-on-year, accounting for 47.2% of total revenue [2]. - The company participated in the distribution and production of 31 films in the first half of 2024, with significant box office performances from several titles [2]. - The company is actively developing over 20 projects and leveraging AI technology for film creation and marketing [2]. Financial Forecasts - Revenue forecasts for 2024-2026 have been adjusted downwards to 4.6 billion, 4.9 billion, and 5.1 billion RMB, respectively, reflecting a conservative outlook on the film market [2]. - Net profit forecasts for the same period have also been reduced to 579 million, 739 million, and 895 million RMB, respectively, due to increased sales expenses and underperformance of some films [2].

Investment Rating - The report maintains a "Buy" rating for the company, considering its leading position in the ticketing business and strong selection capabilities despite a conservative outlook on future box office performance [2]. Core Insights - The company's ticketing business remains robust, with online entertainment ticketing revenue of 1.046 billion RMB, accounting for 48.2% of total revenue, showing a year-on-year increase of 3.0% [2]. - The overall revenue for the first half of 2024 was 2.171 billion RMB, a decrease of 1.2% year-on-year, while gross profit increased by 5.0% to 1.156 billion RMB, resulting in a gross margin of 53.3% [2]. - Adjusted EBITDA reached 490 million RMB, down 16.2% year-on-year, and adjusted net profit was 352 million RMB, a decrease of 22.8% due to increased sales expenses from film subsidies [2]. Summary by Sections Ticketing Business Performance - The ticketing business is driven by steady growth in live performances, with the offline performance market showing a 13.2% year-on-year increase in ticket revenue, reaching 19.016 billion RMB in the first half of 2024 [2]. - The company has strengthened collaborations across the cinema industry chain and expanded its service capabilities, enhancing multi-platform synergy [2]. Entertainment Content Services - Revenue from entertainment content services was 1.024 billion RMB, a decrease of 6.9% year-on-year, accounting for 47.2% of total revenue [2]. - The company participated in the distribution and production of 31 films in the first half of 2024, with significant box office performances from several titles [2]. - The company is actively developing over 20 projects and leveraging AI technology for film creation and marketing [2]. Financial Forecasts and Valuation - Revenue forecasts for 2024-2026 have been adjusted downwards to 4.6 billion RMB, 4.9 billion RMB, and 5.1 billion RMB, reflecting a decrease of 7%, 8%, and 10% respectively from previous estimates [2]. - Net profit forecasts for the same period have also been revised down to 580 million RMB, 740 million RMB, and 900 million RMB, representing decreases of 38%, 29%, and 25% respectively [2].

Financial Performance - Revenue for the first half of 2024 was RMB 2,170.9 million, a slight decrease of 1.2% compared to RMB 2,196.9 million in the same period of 2023[2] - Gross profit increased to RMB 1,156.2 million, reflecting a growth of 5.0% from RMB 1,101.2 million year-on-year[3] - Net profit for the period was RMB 284.8 million, down 29.7% from RMB 405.2 million in the first half of 2023[3] - Adjusted EBITDA for the first half of 2024 was RMB 489.7 million, a decrease of 16.2% compared to RMB 584.4 million in the same period of 2023[3] - Operating profit for the first half of 2024 was RMB 406.9 million, down from RMB 518.4 million in the first half of 2023, representing a decrease of approximately 21.5%[23] - Adjusted net profit for the first half of 2024 was RMB 351.8 million, down from RMB 455.7 million in the first half of 2023, a decrease of approximately 22.8%[27] - EBITDA for the first half of 2024 was RMB 467.1 million, down from RMB 578.7 million in the first half of 2023, a decline of approximately 19.3%[28] - Basic earnings per share for the period was RMB 0.25, down from RMB 0.36 in 2023[39] - Diluted earnings per share for the same period were RMB 0.25, compared to RMB 0.35 in the previous year[56] Revenue Breakdown - 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 service revenue[12] - Online entertainment ticketing service revenue rose from RMB 1,015.8 million in H1 2023 to RMB 1,046.1 million in H1 2024, reflecting a 3.4% increase[14] - Entertainment content service revenue decreased from RMB 1,100.1 million in H1 2023 to RMB 1,024.1 million in H1 2024, a decline of 6.9%[15] - Advertising services and other revenue increased from RMB 81.0 million in H1 2023 to RMB 100.7 million in H1 2024, a growth of 24.0%[16] Expenses and Costs - 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[17] - Selling and marketing expenses increased by 39.9% from RMB 366.0 million in H1 2023 to RMB 512.0 million in H1 2024[20] - Other losses increased by 48.8% from RMB 21.1 million in H1 2023 to RMB 31.4 million in H1 2024, primarily due to increased foreign exchange losses[22] Box Office and Film Production - The number of domestic films released or produced by the company increased to 32, with four of the top five box office films in the first half being from the company[5] - The total box office revenue for the first half of 2024 in mainland China was RMB 23.903 billion, a decline of 9.02% year-on-year[4] - The film "Murder by Death" achieved over RMB 1.3 billion in box office revenue during the summer release period[6] - The company participated in the release of 31 domestic films, with 15 being under its direct control, surpassing historical levels[6] - Upcoming films scheduled for release include "Crisis Line" and "Plan P," among others, indicating a robust pipeline for the second half of the year[7] Assets and Liabilities - Total assets increased from RMB 12,540.1 million as of December 31, 2023, to RMB 13,242.9 million as of June 30, 2024, an increase of approximately 5.6%[29] - Total liabilities rose from RMB 3,501.8 million as of December 31, 2023, to RMB 4,004.4 million as of June 30, 2024, an increase of approximately 14.3%[29] - Current liabilities increased to RMB 4,004,370 thousand from RMB 3,501,819 thousand, which is an increase of approximately 14.3%[41] - Cash and cash equivalents remained stable at RMB 2,150,568 thousand compared to RMB 2,147,222 thousand, showing a slight increase[40] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results for the six months ended June 30, 2024[69] - The company is committed to maintaining high standards of corporate governance and has adhered to all applicable codes during the reporting period[66] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[68] Future Outlook and Strategy - The company aims to enhance participation in the offline performance market and explore AI technology applications for new growth opportunities[10] - The company continues to focus on online entertainment services and advertising services in China, with ongoing investments in new technologies and market expansion strategies[42] - The company has developed AI-related film creation software to enhance script creation efficiency[9] Employee and Operational Information - The company had 866 full-time employees as of June 30, 2024, primarily located in Beijing, Shanghai, and other cities in mainland China[36] - The company has established deep cooperation with super apps in Southeast Asia, the Middle East, and Latin America[8]

Financial Performance - Revenue increased by 105.1% from RMB 2,319.5 million in 2022 to RMB 4,757.4 million in 2023[6] - Gross profit rose by 133.8% from RMB 1,020.0 million in 2022 to RMB 2,384.9 million in 2023[6] - Net profit for the year surged by 766.2% from RMB 104.8 million in 2022 to RMB 907.8 million in 2023[6] - Adjusted EBITDA grew by 290.4% from RMB 320.1 million in 2022 to RMB 1,249.7 million in 2023[6] - Adjusted net profit increased by 342.2% from RMB 232.7 million in 2022 to RMB 1,029.0 million in 2023[6] - Revenue increased by 105.1% from RMB 2,319.5 million in 2022 to RMB 4,757.4 million in 2023, driven by the recovery of the entertainment industry and growth in entertainment content services and online ticketing services[18] - Entertainment content service revenue rose by 106.6% from RMB 1,113.5 million in 2022 to RMB 2,300.4 million in 2023, due to a record number of films distributed and high box office performance[20] - Online entertainment ticketing service revenue grew by 111.5% from RMB 1,067.7 million in 2022 to RMB 2,258.6 million in 2023, supported by a 82.6% increase in China's total box office revenue to RMB 54.915 billion[21] - Gross profit margin improved to 50.1% in 2023 from 44.0% in 2022, with gross profit increasing to RMB 2,384.9 million[16] - Operating profit surged to RMB 1,098.2 million in 2023, up from RMB 162.1 million in 2022, reflecting a significant recovery in profitability[16] - Adjusted EBITDA increased to RMB 1,249.7 million in 2023, compared to RMB 320.1 million in 2022, indicating strong operational efficiency[17] - Net profit for the year rose to RMB 907.8 million in 2023, up from RMB 104.8 million in 2022[31] - Adjusted EBITDA increased to RMB 1,249.7 million in 2023 from RMB 320.1 million in 2022, reflecting strong operational performance[36] - Total assets grew to RMB 12,540.1 million in 2023, while total liabilities increased to RMB 3,501.8 million, resulting in a debt-to-asset ratio of 27.9%[37] - Cash and cash equivalents amounted to RMB 3,685.4 million as of December 31, 2023, primarily denominated in RMB and USD[38] - Total borrowings were approximately RMB 250.0 million as of December 31, 2023, all in RMB-denominated bank loans with interest rates ranging from 1.30% to 1.80%[38] - Unutilized bank financing facilities stood at RMB 700.0 million as of December 31, 2023[38] - Capital expenditures increased by 100.0% from RMB 12.3 million in 2022 to RMB 24.6 million in 2023[39] - The company holds a 5.7% equity interest in Huanyu Media Group Limited as of December 31, 2023[41] - The company had 872 full-time employees as of December 31, 2023, primarily located in Beijing, Shanghai, and other cities in China[43] - The company did not enter into any forward contracts or other financial instruments to hedge foreign exchange risk in 2023[42] - The company plans to fund future capital expenditures using cash generated from operations[39] - The company maintains a net cash position as of December 31, 2023, with no significant contingent liabilities[38] - The company did not have any significant acquisitions or disposals of subsidiaries or associates during the year ended December 31, 2023[40] - The company achieved strong recovery and growth in the entertainment industry in 2023, with multiple business and financial indicators reaching historical highs[56] - The company plans to continue enhancing its core competitiveness and profitability in the "technology + full entertainment" sector, focusing on film promotion, distribution, and live performance services[58] - The company aims to explore new innovative business areas and regions, leveraging its dual advantages in technology services and the entertainment industry[58] - The company will further develop post-box office market-related businesses, in addition to its core film ticketing services[58] - The company did not pay a final dividend for the year ended December 31, 2023[65] - The company will suspend share transfer registration from June 21, 2024, to June 26, 2024, for the annual general meeting[66] - The company did not issue any public bonds during the year ended December 31, 2023[70] - The company made no charitable donations during the year ended December 31, 2023[72] - The company's executive directors have service contracts with a term of three years starting from June 29, 2021, with a notice period of at least three months[74] - The company received annual independence confirmation letters from all independent non-executive directors, confirming their independence[75] - The company's Chairman and Non-Executive Director, Mr. Wang Changtian, indirectly holds approximately 24.24% and 16.87% of the company's issued share capital through Vibrant Wide Limited and Hong Kong Film International Limited, respectively[77] - The company has adopted a series of employee incentive plans (ESOP) with a total of 117,033,705 shares issued or issuable, representing approximately 10.1% of the company's total issued share capital as of the annual report date[81] - The Pre-IPO Share Option Plan allows for the issuance of up to 42,544,600 shares upon exercise of all options, representing approximately 3.7% of the company's total issued share capital as of the annual report date[82] - The total number of shares that may be issued under the Post-IPO Share Option Scheme and Restricted Share Unit Plan does not exceed 55,211,880 shares, representing approximately 4.8% of the company's total issued share capital as of the annual report date[89] - The maximum number of shares that may be issued under the Post-IPO Share Option Scheme alone is 23,293,595 shares, representing approximately 2.0% of the company's total issued share capital as of the annual report date[89] - The exercise price for Pre-IPO share options is determined by the Board or CEO and must not be lower than the par value of the company's shares[84] - Pre-IPO share options are subject to a six-month lock-up period from the date of listing, during which employees cannot sell the related shares[83] - For Class A options, 25% of the granted options can be exercised on the first vesting date, increasing to 50% after one year, 75% after two years, and 100% after three years[87] - For Class B options, 50% of the granted options can be exercised on the first vesting date, increasing to 75% after one year and 100% after two years[88] - During the reporting period, 685,580 Pre-IPO share options were granted, 221,900 were exercised, and 461,515 remained unexercised[85] - The total number of Pre-IPO share options granted during the reporting period was 15,779,492, with 5,497,119 exercised and 10,060,473 remaining unexercised[86] - Pre-IPO share options are automatically canceled if the grantee retires or voluntarily terminates employment, and any unexercised options expire within 90 days[83] - The Post-IPO Share Option Scheme aims to incentivize and reward directors, senior management, employees, and other eligible individuals for their contributions to the company[89] - The company's post-IPO share option plan has a validity period of 10 years, with 4 years remaining as of the annual report date[92] - The post-IPO share option plan allows for annual vesting of 25% over 4 years or 50% vesting by the second year, with the remainder equally vested in the third and fourth years[91] - Any share option grants exceeding 1% of the total issued shares within a 12-month period require shareholder approval at a general meeting[90] - Share option grants to major shareholders or independent non-executive directors exceeding 0.1% of issued shares within 12 months require shareholder approval[91] - The company revised its post-IPO share option plan to comply with amended listing rules, effective from January 1, 2023, and approved by shareholders on June 28, 2023[93] - The weighted average exercise price of share options granted under the post-IPO plan is HKD 13.1360, with a vesting period of 10 years from the grant date[94] - As of December 31, 2023, the company had 7,533,000 unexercised share options under the post-IPO plan[94] - The post-IPO share option plan allows for the exercise of options by legal heirs in the event of the original grantee's death[92] - The company does not require payment from grantees for share option grants unless otherwise determined by the board or CEO[91] - The post-IPO share option plan restricts the total number of shares issued under incentive plans to 1% of the total issued shares within a 12-month period[90] - The total number of post-IPO share options available for grant under the post-IPO share option scheme as of January 1, 2023, and December 31, 2023, were 7,992,830 and 11,889,550, respectively[96] - No share options were granted during the year ended December 31, 2023[96] - The Restricted Share Unit (RSU) Plan has a total limit of 31,918,285 shares, representing approximately 2.8% of the company's total issued share capital as of the annual report date[100] - The RSU Plan is effective for 8 years from its adoption date, with 2 years remaining as of the annual report date[99] - Any RSU grant exceeding 0.1% of the issued shares to directors (excluding independent non-executive directors) or key executives requires shareholder approval[98] - The RSU Plan aims to retain and incentivize talent, including directors, senior management, and employees, by granting conditional rights to receive shares or cash equivalents[97] - The company's total granted share options under the pre-IPO share option scheme amounted to 15,135,171, with 3,766,500 exercised and 10,769,851 remaining[95] - The RSU Plan allows the Board and CEO full discretion to determine the amount and terms of awards granted to participants[99] - Any RSU grant exceeding 1% of the issued shares within a 12-month period requires separate shareholder approval[97] - The RSU Plan includes provisions for cash and non-cash income, dividends, and sales proceeds related to the shares from the grant date to the vesting date[97] - The company has appointed a professional trustee to manage and distribute restricted share units (RSUs) under the RSU plan, with vesting periods of either 25% annually over four years or 50% in the second year and the remainder equally in the third and fourth year[101] - As of December 31, 2023, the total number of RSUs available for grant under the RSU plan was 13,243,560, down from 22,131,193 at the beginning of the year[104] - The fair value of RSUs granted on May 4, 2023, September 20, 2023, and November 1, 2023, was HK$8.34, HK$11.68, and HK$9.32 per share, respectively, based on the company's share price on the grant date[104] - The weighted average closing price of shares immediately before the vesting date of RSUs vested in 2023 was HK$8.96 per share[104] - The total number of shares that could be issued under all share option and RSU plans in 2023 was 0.81% of the weighted average number of issued shares for the year[104] - As of December 31, 2023, Mr. Wang Changtian, a director and the company's top executive, held a 41.11% interest in the company through controlled corporations[106] - Mr. Zheng Zhihao, another director, held a 1.68% interest in the company through a wholly-owned subsidiary, Rhythm Brilliant Limited, which directly held 19,277,225 shares[107] - Vibrant Wide Limited holds a beneficial ownership of 277,979,625 shares, representing 24.24% of the total shares[109] - Hong Kong Film International Limited holds a beneficial ownership of 193,486,220 shares, representing 16.87% of the total shares[109] - Inspired Elite Investments Limited holds a beneficial ownership of 82,693,975 shares, representing 7.21% of the total shares[109] - Tencent holds an indirect beneficial ownership of 157,169,260 shares, representing 13.71% of the total shares through Image Flag Investment (Hong Kong) Limited[109][110] - Interstellar Investment Ltd. holds a beneficial ownership of 66,127,317 shares, representing 5.77% of the total shares[109] - The annual cap for the related party transaction with Light Media Group for film and TV series investment and production is RMB 165.0 million, with actual transaction amount of RMB 0.0 million for the year ended December 31, 2023[116] - The annual cap for the related party transaction with Light Media Group for film and TV series promotion and distribution services is RMB 101.2 million, with actual transaction amount of RMB 47.9 million for the year ended December 31, 2023[117] - The annual cap for related transactions with Enlight Media Group for film and TV drama promotion services in 2023 was RMB 44.0 million, with actual transaction amount of RMB 11.3 million[118] - The annual cap for related transactions with Enlight Media Group for products and services provided by the company in 2023 was RMB 17.6 million, with actual transaction amount of RMB 1.1 million[119] - The annual cap for related transactions with Enlight Media Group for products and services provided to the company in 2023 was RMB 1.0 million, with actual transaction amount of RMB 0.02 million[119] - The annual cap for related transactions with Tencent Group for film and TV drama promotion services provided by the company in 2023 was RMB 231.7 million, with actual transaction amount of RMB 2.0 million[120] - The annual cap for related transactions with Tencent Group for film and TV drama promotion services provided to the company in 2023 was RMB 60.0 million, with actual transaction amount of RMB 2.7 million[122] - The annual cap for related transactions with Tencent Group for payment services in 2023 was RMB 110.0 million, with actual transaction amount of RMB 91.7 million[123] - The annual cap for related transactions with Tencent Group for cloud and technical services in 2023 was RMB 60.0 million, with actual transaction amount of RMB 44.8 million[124] - The company renewed the Tencent Business Cooperation and Service Framework Agreement, with an annual cap of RMB 62.0 million for providing products and services to Tencent Group, while the actual transaction amount for 2023 was approximately RMB 4.4 million[125] - The company renewed the Tencent Entertainment Content Investment and Production Cooperation Framework Agreement, with an annual cap of RMB 364.0 million, but the actual transaction amount for 2023 was RMB 0.0 million[126] - The company signed the Tencent Marketing Promotion Framework Agreement, with an annual cap of RMB 110.0 million for traffic and technical support services, and the actual transaction amount from February 14, 2023, to December 31, 2023, was approximately RMB 87.3 million[126] - The company entered into the Yuewen Entertainment Content Investment and Production Cooperation Framework Agreement, with an annual cap of RMB 381.0 million, but the actual transaction amount for 2023 was RMB 0.0 million[127] - The company signed the Yuewen Movie Promotion and Distribution Framework Agreement, with an annual cap of RMB 214.5 million for providing movie promotion services, but the actual transaction amount for 2023 was RMB 0.0 million[128] - Under the Yuewen Movie Promotion and Distribution Framework Agreement, Yuewen Group provided movie promotion services to the company, with an annual cap of RMB 18.8 million, but the actual transaction amount for 2023 was RMB 0.0 million[128] - The independent non-executive directors and auditors have reviewed and confirmed that the ongoing connected transactions were conducted in the ordinary course of business, on normal commercial terms or better, and in compliance with relevant agreements, ensuring fairness and reasonableness in the interests of the company and its shareholders[129] - The auditors found no issues indicating that the disclosed ongoing connected transactions were not approved by the board, not conducted in accordance with the company's pricing policy, or exceeded the annual caps set by the company[129] - The company operates certain businesses in China through consolidated affiliated entities under contractual arrangements due to regulatory restrictions on foreign ownership, allowing the company to receive economic benefits and exercise control over these entities[130] - The exclusive consulting and service agreement with the foreign-invested enterprise (FIE) ensures that the company receives 100% of the consolidated affiliated entities' total profits, adjusted for costs, taxes, and other statutory contributions, with service fees calculated monthly and paid within 10 days of invoice receipt[133] - The exclusive consulting and service agreement has a 20-year term, renewable at the FIE's discretion, and prohibits the consolidated affiliated entities from accepting similar services from third parties without prior written consent from the FIE[134] - Foreign-invested enterprise has the exclusive and irrevocable right to request the transfer of all equity in Tianjin Maoyan Weiyin, with no conditions attached[135] - Tianjin Maoyan Weiyin and its shareholders are restricted from selling, transferring, or disposing of assets exceeding RMB 5,000,000 without prior written consent from the foreign-invested enterprise[135] - The affiliated entities are prohibited from incurring, guaranteeing, or assuming any debt, except for payables

2024年3月29日 公司研究 业绩表现强劲，主发行佳片不断 ——猫眼娱乐（1896.HK）2023 年业绩公告点评 要点 买入（维持） 事件：公司发布23年全年业绩公告，实现营收47.57亿元人民币，同比增长 当 前价：9.56港元 105.1%；实现毛利润23.85亿元，同比增长133.8%，对应毛利率为50.1%， 同比增长6.2pct；经调整EBITDA达12.5亿元，同比增长290.4%；实现经调 作者 整净利润达10.29亿元，同比增长342.2%。 分析师：付天姿 CFA，FRM 点评：电影及演出市场回暖，公司业绩创历史新高。国家电影局数据显示，23 执业证书编号：S0930517040002 年度全国电影总票房达 549 亿元，同比增长 82.6%，国产影片年度票房为 460 021-52523692 亿元，创历史新高。线下演出市场同样迅速升温，根据《2023 年全国演出市场 futz@ebscn.com 发展简报》，23年全国演出票房收入502 亿元，与19年相比增长150.7%。公 联系人：杨朋沛 司在线娱乐票务收入22.59亿元（yoy+111.5%），占总收入比例47.5%。电影 02 ...