Company Overview - CMC (柠萌影视) is a leading content production company in China, focusing on high-quality drama series based on a strong copyright IP reserve [2] - Since its establishment in 2014, CMC has produced and released 13 high-quality drama series, achieving a high quality rate of approximately 71.4% [2] - The company has explored new growth channels such as content marketing, derivative licensing, and overseas distribution to maximize the commercial value of its proprietary IP [2] Financial Performance - As of December 31, 2024, CMC reported total revenue of 657 million yuan, a year-on-year decrease of 46.22% [1] - The company recorded a net loss attributable to shareholders of 189 million yuan, a year-on-year decrease of 188.54% [1] - CMC's gross profit margin stands at 16.52%, with a debt-to-asset ratio of 28.09% [1] Market Position - CMC's current price-to-earnings (P/E) ratio is -5.56, ranking 79th in the media and entertainment industry, which has an average P/E ratio of -13.52 [1] - The company has underperformed the Hang Seng Index, with a year-to-date increase of 12.14%, compared to the index's increase of 20.38% [1] - No investment ratings have been issued by institutions for CMC at this time [1]

Industry Overview - The current state of the drama market is challenging, with only a few shows like "In the Name of the Law" performing reasonably well, while others from major production companies have not made a significant impact [1][9] - The first phase of the summer season has concluded with disappointing results for major players, as many anticipated dramas failed to resonate with audiences [9] Key Productions and Performances - Tencent Video and iQIYI launched "Lychee of Chang'an" and "Lingjiang Xian" respectively, but both shows faced content controversies that hindered their success despite strong production teams [1][3] - Notable dramas such as "The Age of Forging" and "Huan Yu" also struggled, failing to meet audience expectations due to weak storytelling and character development [3][6] - The summer drama landscape is expected to become more competitive as new productions are set to debut, including "Justifiable Defense," which focuses on self-defense cases and features a strong cast [10][12] Upcoming Projects - Several new dramas are scheduled for release, including "Justifiable Defense" on July 9, which is anticipated to be a standout due to its unique theme and high-profile cast [10][12] - New productions from established companies like New Classics Media and Zhengwu Media are also on the horizon, with a variety of genres being explored [14][18] - The upcoming dramas from Noon Sunshine and Lingmeng are expected to contribute to the summer lineup, with "Cherry Amber" and "Midnight Return" respectively [14][16] Market Trends - Compared to the same period last year, the overall quality of summer dramas has declined, with no standout series capturing a wide audience [20] - The industry is looking for high-quality productions to emerge in the coming months to reverse the current downward trend [20]

Core Insights - The core viewpoint of the article is the announcement of the 2025 drama series lineup by Lingmeng Media, featuring seven new productions that will begin filming in the second half of the year, showcasing the company's strong content creation capabilities and forward-looking strategy [1][17][20]. Group 1: Overview of the 2025 Drama Series - Lingmeng Media's 2025 lineup includes seven works: "Confrontation," "Ask the Heart 2," "Small Town Good Prescription," "A Thought of Jiangnan," "Just in Time for Rain," "Today is Sun Rain," and "Ten Days to the End" [1][17]. - The series spans various genres, including realism, contemporary romance, historical drama, and fantasy, reflecting the company's diverse storytelling approach [17][20]. Group 2: Key Productions and Themes - "Confrontation," a key project guided by the Ministry of National Security, focuses on national security and human nature, marking the first domestic series to address cross-strait relations and Sino-U.S. dynamics [18]. - "Ask the Heart 2" continues the story from its first season, featuring the same creative team and exploring themes of warmth and hope in the medical field [18]. - "Small Town Good Prescription" tells the story of a genius doctor facing life's challenges and finding a "second-best solution" upon returning to his hometown [18]. Group 3: Industry Position and Strategy - Despite facing industry-wide challenges and a projected loss in 2024, Lingmeng Media is increasing production capacity, leveraging its strong cash flow and stable financial position to invest in high-quality content [20]. - The company plans to produce over 200 episodes this year, including additional films and short dramas, reinforcing its commitment to high-quality content creation [20]. - Lingmeng Media emphasizes its belief in the importance of good content and aims to be a nurturing environment for talented creators, focusing on producing works that resonate with audiences and reflect societal values [20].

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

Group 1 - The Hong Kong film and television stocks are performing strongly, with Alibaba Pictures (01060.HK) rising over 5% [1] - Bigo Group (08220.HK) has increased by more than 2% [1] - Other companies such as Maoyan Entertainment (01896.HK) and Ningmeng Pictures (09857.HK) also saw gains [1]

Content Production and Strategy - By the end of 2024, the Group has produced and distributed a total of 25 high-quality drama series, with 23 being original series where the Group acted as the lead/sole investor and executive producer[9]. - The Group's original drama series cover popular themes such as family life, education, and female empowerment, contributing to extensive discussions and positive value propositions[9]. - The Group is committed to diversified growth strategies, exploring new avenues such as content marketing, short drama series, overseas distribution, and IP derivative development[10]. - The Group aims to maximize the commercial value of its proprietary IP rights, reinforcing its leadership in the industry[10]. - The Group has a strong reserve of original IPs, which is a key driver for its business operations and market position[7]. - The Group's mission is to shape content by people and shape people with content, reflecting its commitment to quality and innovation in media[8]. - The Group aims to initiate production of new projects with over 200 episodes in the coming year, focusing on premium long-form drama series[49]. - The Group's short drama series business is expected to maintain scale development while producing premium content[49]. - The Group's strategy includes leveraging new business models in content marketing to expand strategic brand resources[49]. - The Group plans to explore new business models such as short drama series marketing and IP licensing, while also developing an artiste brokerage business[87]. Financial Performance - The Group's revenue for the year ended 31 December 2024 was approximately RMB657.0 million, a decrease of 46.2% compared to RMB1,221.8 million for the year ended 31 December 2023[26]. - Gross profit for the year ended 31 December 2024 was approximately RMB108.5 million, representing a decrease of 77.5% from approximately RMB481.6 million for the same period in 2023[26]. - Adjusted net loss for the year ended 31 December 2024 was approximately RMB184.2 million, compared to adjusted net profit of approximately RMB227.4 million for the same period in 2023[26]. - Net assets as of 31 December 2024 amounted to approximately RMB2,313.9 million, a decrease of 10.1% from RMB2,574.5 million as of 31 December 2023[27]. - The Group's total assets as of 31 December 2024 were approximately RMB3,217.9 million, down from RMB3,567.5 million as of 31 December 2023[29]. - The Group's total liabilities as of 31 December 2024 were approximately RMB904.0 million, compared to RMB992.9 million as of 31 December 2023[29]. - The Group's revenue and net profit for 2024 experienced a temporary year-on-year decrease due to a smaller number of drama series episodes broadcasted and ongoing investments in new businesses[54]. - The Group's cost of sales decreased by 25.9% from RMB740.2 million in 2023 to RMB548.5 million in 2024[95]. - Gross profit fell from RMB481.6 million in 2023 to RMB108.5 million in 2024, reflecting the impact of the broadcast situation of drama series[99]. - The gross profit margin decreased from 39.4% in 2023 to 16.5% in 2024[100]. - Other income and gains decreased by 43.7% from RMB121.7 million in 2023 to RMB68.5 million in 2024[101]. - Selling and distribution expenses increased by 70.7% from RMB93.0 million in 2023 to RMB158.7 million in 2024, primarily due to efforts to expand the short drama series business[102]. - The Group's adjusted net loss for the year ended December 31, 2024, was RMB184.2 million, compared to an adjusted net profit of RMB227.4 million in 2023[120]. Viewership and Audience Engagement - The average viewership per episode of the original drama series "Under the Skin II" ranked TOP1 across all platforms in Q4 of 2024[37]. - In 2024, the Group achieved over double growth in viewership, number of subscribers, and total viewing time on its overseas self-operated YouTube channels[44]. - The original drama series "Under the Skin II" achieved significant viewership, ranking TOP1 in Hong Kong, Taiwan, Korea, and TOP3 in Malaysia, while breaking viewership records on TRUEID in Thailand[79]. - The original drama series "In Between" ranked TOP2 in the urban romance drama category for 2024, with over 900 million exposures on Xiaohongshu, leading the Weibo Drama Influence List[60]. - "My Boss" reached a popularity rate exceeding 9,500 on Youku within 13 days of its release, ranking TOP5 in viewership for exclusive Youku dramas in the first half of 2024[60]. - Several short drama series recorded viewership exceeding 100 million, with recharge amounts per series exceeding RMB10 million, indicating top industry performance[72]. - The number of viewings, subscribers, and viewing time for self-operated overseas channels more than doubled year-on-year[78]. - In 2024, the Group's self-operated official YouTube channel recorded viewership exceeding 100 million, representing a year-on-year increase of 120%, with subscribers increasing by 180% and total viewing time increasing by 205%[79]. Product and IP Development - The Group successfully produced and released 3 original drama series and 1 cinema film in 2024, with the cinema film achieving good box office results for a non-holiday release[56]. - The sales volume of peripheral derivative products for the drama series "Under the Skin II" ranked among the top tier of drama series in 2024, securing the first place among modern drama series[45]. - The Group successfully launched over 200 peripheral derivative products for "Under the Skin II," with cotton-stuffed dolls selling out immediately, achieving a sales volume of one million in record time[82]. - The sales volume of peripheral products for "My Boss" ranked TOP1 among drama series products launched by Alifish in the first half of 2024[83]. - The Group's copyright purchase amount and number of copyrights reached the highest level in previous years, enhancing the influence and commercial value of its IPs[45]. - The Group plans to debut its first overseas localized project and continue diversifying its overseas business development[49]. - The overseas distribution of the film "The Unseen Sister" was released in multiple regions including Australia, the United States, Canada, and New Zealand, and was shortlisted for major film festivals[79]. Corporate Governance and Management - The listing date of the company was August 10, 2022, under stock code 9857[24]. - The Group's principal place of business is located in Shanghai, China, with additional operations in Hong Kong[18]. - The Group has established relationships with several major banks in China, supporting its financial operations and growth initiatives[23]. - As of December 31, 2024, the Group had 203 employees, with approximately 70.9% being female, maintaining a diverse workforce[92]. - The execution of the Supplemental Agreement on January 24, 2025, will not materially impact the control and corporate governance of the Company[159]. - Mr. Su, Ms. Chen, and Ms. Xu remain as a group of controlling shareholders following the Supplemental Agreement, while Mr. Zhou and others cease to be part of the controlling shareholders[160]. - Ms. Chen has approximately 20 years of experience in the planning, production, and marketing of TV series[167]. - Mr. Su has approximately 27 years of experience in the media industry and management[162]. - Ms. Xu Xiao'ou has approximately 18 years of experience in TV series production, having held various positions at Shanghai Radio and Television Station from 2006 to 2014[172]. - Ms. Wang Juan is currently the vice president of Tencent Online Video Business Unit, responsible for strategic planning and management of content copyright and development[179]. - Mr. Zhang Rong has over 10 years of investment experience, currently serving as a partner at Hony Capital, focusing on science, technology, and cultural creation sectors[181]. - Ms. Long Yu has been a member of the Bertelsmann Group Management Committee since 2011, advising on strategy formulation and development[185]. - Ms. Xu has been recognized with multiple awards, including "Producer of the Year" in 2023 by New Weekly[174]. - Ms. Wang obtained her MBA from China Europe International Business School in November 2017[180]. - Ms. Long has served as an independent non-executive director for various companies, providing independent judgment and oversight[185]. - Ms. Long has approximately 18 years of experience in the media industry and investment, having joined Bertelsmann Group in 2005[188]. - Ms. Long served as a principal at Bertelsmann Digital Media Investments, focusing on early-stage investments in innovative companies in the technology and media sectors[188]. - Ms. Long was the CEO of Bertelsmann China Corporate Center from 2008 to 2020, overseeing investment management and advisory services[189]. - Ms. Long has held various directorships, including Bitauto Holdings Limited and China Distance Education Holdings Limited, providing independent judgment to their boards[189]. - Ms. Long is an active member of the World Economic Forum's Young Global Leaders Advisory Council[191]. - Mr. Jiang Changjian has approximately 25 years of experience in political science and international politics, serving as an associate professor at Fudan University since 2001[192]. - Mr. Jiang has been an independent non-executive director of Sanxiang Impression Co., Ltd. since May 2018, providing independent judgment to the board[192]. - Mr. Jiang served as an independent non-executive director of BGI Genomics Co., Ltd. from June 2015 to June 2021[192]. - Ms. Long received a master's degree in business administration from Stanford Graduate School of Business in June 2005[191]. - Ms. Long has been a director of Tapestry Inc. since January 2016, providing independent judgment and serving on the audit committee[188]. - Mr. Jiang was appointed as an independent non-executive director on September 24, 2021, bringing approximately 25 years of experience in international relations and public affairs[194]. - Ms. Tang was appointed as an independent non-executive director on September 24, 2021, with around 14 years of experience in accounting and management[197]. - Ms. Tang has been a professor at Donghua University since January 2022, focusing on accounting research and education[197]. - Mr. Jiang holds a master's degree in international politics and a doctoral degree in political theory from Fudan University[200]. - Ms. Tang obtained a doctoral degree in accounting from Shanghai Jiao Tong University in December 2009[198]. - Ms. Tang has been recognized as a Chinese Certified Public Accountant since December 2009[198]. - Ms. Tang was awarded the Shanghai Pujiang Talent in August 2016 and selected as a "National Accounting Leading Talent" in December 2017[199]. - Ms. Tang has served as an independent non-executive director of Shanghai No.1 Pharmacy Co., Ltd. since June 2022[197]. - Mr. Jiang has previously held independent director positions at Shenzhen BGI Genomics Co., Ltd. and Suzhou EDL Technology Co., Ltd.[194]. - Mr. Jiang's experience includes being a visiting scholar at Yale University and Columbia University[194]. Market and Operational Insights - The accumulated duration of short drama series for the year was approximately 6,000 minutes, representing a year-on-year increase of approximately 5 times[38]. - The first cinema film "The Unseen Sister" ranked TOP3 in box office performance among domestic suspense-themed films in 2024[39]. - The revenue from the commercial short drama series segment doubled year-on-year[38]. - The Group's overseas drama series achieved significant viewership growth, with some breaking local broadcasting records for Chinese dramas[78]. - The Group did not incur any material foreign currency exchange losses for the year ended December 31, 2024, and will continue to monitor foreign exchange exposure[139]. - As of December 31, 2024, the group had no significant investments and utilized idle funds to subscribe to financial products[152]. - As of December 31, 2024, there were no assets registered as collateral[153]. - As of December 31, 2024, the group faced no significant contingent liabilities[154]. - As of December 31, 2024, there were no future plans for significant investments or capital assets[155].

Core Insights - The year 2024 is seen as a pivotal year for traditional drama production companies in China, with many reporting revenue declines [1] - The industry is experiencing a downturn, with some companies managing to grow through cost-cutting or reliance on single successful projects, indicating that the sector has not fully recovered [2][3] Company Performance - Huace Film & TV reported a revenue of 1.939 billion yuan in 2024, a decrease of 14.48% year-on-year, with a net profit of 170 million yuan, down 41.55% [1] - Ciwen Media's revenue was 366 million yuan, down 20.63%, but it achieved a net profit of 12.851 million yuan, reversing losses due to reduced operating costs [1] - Ningmeng Media's revenue fell by 46.25% to 657 million yuan, resulting in a net loss of 190 million yuan [1] - Daocaoxiong Entertainment and Huanrui Century were among the few companies to achieve both revenue and profit growth, with Daocaoxiong's revenue increasing by 33.6% to 1.125 billion yuan [2] Industry Trends - The overall performance of traditional long-form dramas is declining, with a significant reduction in the number of new shows being produced [4] - The total number of new domestic dramas released in 2024 was 7,610 episodes, a decrease of 14% year-on-year [4] - The industry is shifting focus towards micro-short dramas, which have seen rapid development in recent years, as companies seek new growth opportunities [6] Strategic Shifts - Companies like Ningmeng Media are exploring micro-short dramas, with their 2023 release "Twenty-Nine" achieving over 1.17 billion views [6] - Huace Film & TV launched seven micro-short dramas in 2024, while Ciwen Media is producing four [7] - Huanrui Century is enhancing its artist management business, which saw an 86.86% revenue increase to 234 million yuan, becoming a key growth area [4][7] - Companies are also investing in AI technology to improve content production and management, indicating a strategic pivot towards innovation [7]

Core Viewpoint - The company, Lingmeng Media, is facing significant financial challenges, with a sharp decline in revenue and a net loss in 2024, attributed to the ongoing pressure on copyright drama profitability and a strategic shift towards lower-cost genres [1][9][12]. Financial Performance - In 2024, Lingmeng Media's revenue dropped to 657 million RMB from 1.22 billion RMB in 2023, marking a decrease of approximately 46.4% [7]. - The net loss for 2024 reached 184 million RMB, a stark contrast to a profit of 214 million RMB in 2023 [2][9]. - The gross profit fell to 108 million RMB, down from 481 million RMB in the previous year, resulting in a gross margin decline from 39.4% to 16.5% [6][7]. Content Strategy - Lingmeng Media introduced eight new dramas, primarily focusing on historical and modern romance genres, while notable sequels from previous years were absent from the lineup [1][15]. - The company has shifted its focus from high-cost reality-themed dramas to more cost-effective historical and modern romance productions due to the declining profitability of copyright dramas [12][17]. - The company produced three copyright dramas in 2024, but their performance was disappointing, with only one drama, "You Also Have Today," achieving a rating above 7 on Douban [3][5][11]. Short Drama Business - Lingmeng Media has significantly increased its short drama production, with over 40 short dramas released in 2024, although the overall profitability remains uncertain [20][21]. - The short drama segment generated 32.23 million RMB in revenue in 2023, a twelvefold increase, but the 2024 financial report indicates a more cautious approach due to rising costs and the competitive landscape [18][20]. - The company plans to produce around 200 short dramas by 2025, indicating a continued aggressive strategy in this segment despite the challenges [21].

出品：新浪财经上市公司研究院 2022年8月，柠萌影视在港交所主板首发上市，成功登陆资本市场，摩根士丹利、中金公司担任联席全球协调人、联席账簿管理人及联 席牵头经办人。 作者：君 3月25日晚，柠萌影视披露2024年度业绩公告，交出上市以来最差成绩单。财务数据显示，公司2024年实现营业收入6.57亿元，上年同 期为12.22亿元，同比近乎腰斩；录得净亏损1.89亿元，上年同期为盈利2.14亿元，同比由盈转亏，降幅高达188.54%。 业绩"变脸"背后，柠萌影视长剧精品化战略受挫，2024年仅3部新剧播出，剧集数远低于行业头部公司；同时，公司重磅加码短剧赛 道，"爆款之年"规模增长但盈利未现，成为利润黑洞。 上市3年，柠萌影视已累计亏损7亿，股价紧跟着跌跌不休，市值较历史高点蒸发九成，逾百亿元。 长剧口碑崩盘 营收腰斩 公司官网显示，柠萌影视是一家基于深厚的版权IP储备，专注创作优质剧集的中国顶级内容生产公司。自2014年于上海成立以来，致力 于进行剧集的投资、制作、发行、宣传、衍生授权等全产业链运营。 | | 截至12月31日止年度 | | | --- | --- | --- | | | 2024年 | 2 ...

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 657,008,000, a decrease of 46.2% compared to RMB 1,221,752,000 in 2023[3] - Gross profit for 2024 was RMB 108,523,000, resulting in a gross margin of 16.5%, down from 39.4% in 2023[3] - The adjusted net loss for 2024 was RMB 184,113,000, compared to an adjusted net profit of RMB 227,421,000 in 2023[4] - The company's total revenue for the year ended December 31, 2024, was RMB 657.0 million, a decrease of 46.2% compared to RMB 1,221.8 million for the year ended December 31, 2023[24] - The gross profit for the year ended December 31, 2024, was RMB 108.5 million, a decline from RMB 481.6 million in the previous year[26] - The gross margin for the year ended December 31, 2024, was 16.5%, down from 39.4% in the previous year[27] - Other income and gains decreased by 43.7% to RMB 68.5 million for the year ended December 31, 2024, compared to RMB 121.7 million in the previous year[28] - Selling and distribution expenses increased by 70.7% to RMB 158.7 million for the year ended December 31, 2024, from RMB 93.0 million in the previous year[29] - The company's net asset value decreased to RMB 2,313,850,000 in 2024 from RMB 2,574,543,000 in 2023, representing a decline of 10.1%[68] - The group reported a pre-tax loss of RMB 189,144,000 for 2024, compared to a profit of RMB 213,628,000 in 2023[93] Operational Highlights - The company produced approximately 6,000 minutes of short dramas in 2024, representing a year-on-year increase of about 500%[17] - The first theatrical film, "The Heart of Qiao Yan," grossed over RMB 150 million at the box office in mainland China, ranking as the top 3 domestic suspense films in 2024[10] - The overseas self-operated YouTube channel saw a 120% increase in views, reaching over 100 million, with subscriptions up by 180% and total watch time up by 205%[19] - The company successfully launched three copyright dramas and one theatrical film in 2024, with "Hunting Crime 2" achieving top viewership on multiple platforms[6] - The company’s business short dramas doubled in revenue compared to the previous year, with significant viewer engagement and commercial conversion rates[17] - The company’s overseas content production and distribution expanded significantly, breaking viewership records for Chinese dramas in several countries[19] Cash Flow and Assets - The net cash outflow from operating activities for the year ended December 31, 2024, was RMB 251.0 million, compared to a net inflow of RMB 359.6 million for the year ended December 31, 2023, reflecting increased production and development costs[42] - The net cash inflow from investment activities for the year ended December 31, 2024, was RMB 659.7 million, a significant improvement from a net outflow of RMB 296.9 million in the previous year, mainly due to the maturity of financial products[43] - The net cash outflow from financing activities decreased to RMB 38.6 million for the year ended December 31, 2024, from RMB 89.3 million in 2023, a reduction of 56.8% due to bank loans for production[44] - The cash and cash equivalents increased to RMB 1,086.3 million as of December 31, 2024, from RMB 716.2 million at the beginning of the year, representing a 51.7% increase[41] - The company's debt-to-asset ratio was 28.1% as of December 31, 2024, showing no significant change from 27.8% in the previous year[45] Employee and Governance - The number of employees as of December 31, 2024, was 203, with approximately 70.9% being female, reflecting a commitment to gender diversity[22][23] - The audit committee has reviewed the financial reporting processes and internal controls, ensuring compliance with applicable standards[62] - The company will continue to review and monitor its corporate governance practices to ensure adherence to the corporate governance code[59] Future Outlook - The company aims to produce over 200 episodes of long-form content by 2025, focusing on both original and adapted works[21] - The expected revenue to be recognized within one year from remaining performance obligations is RMB 568,529,000, compared to RMB 555,658,000 in 2023[87] - The total amount of remaining performance obligations is RMB 2,475,227,000, an increase of 29.8% from RMB 1,907,602,000 in 2023[87] Dividends and Investments - The board of directors did not recommend any final dividend for the year ended December 31, 2024[54] - The group did not declare a dividend for the year ending December 31, 2024, while a dividend of RMB 21.8 cents per share was declared for 2023[91] - The company has no significant investments or future capital asset plans as of December 31, 2024[49] - The company has no hedging activities as of December 31, 2024[50]