Core Viewpoint - Company expects significant profit growth for the first half of 2025, with net profit projected to increase by over 50% compared to the same period last year [1][2]. Group 1: Performance Forecast - Company anticipates net profit attributable to shareholders to be between 180 million and 230 million yuan for the first half of 2025 [1]. - The expected net profit after deducting non-recurring gains and losses is projected to be between 140 million and 190 million yuan [1]. - This represents an increase of 91.57 million yuan to 136.57 million yuan compared to the previous year's net profit of 104.47 million yuan [2]. Group 2: Industry Performance - The Chinese film market's box office reached 29.231 billion yuan in the first half of 2025, marking a year-on-year growth of 22.91% [2]. - The number of moviegoers increased to 641 million, reflecting a year-on-year growth of 16.89% [2]. - Factors contributing to this growth include improved film supply, the influence of major films, and increased viewing demand [2]. Group 3: Company Strategy and Operations - Company has optimized its cinema development strategy and strengthened its competitive position in the film investment sector, leading to an increase in box office market share [2]. - The company has implemented refined management practices to enhance operational efficiency and maintain competitive cost control [2]. - Company has diversified its film production and distribution strategy, with several films released and a robust pipeline of upcoming projects, including short dramas [2].

Hengdian Entertainment Co., Ltd. 2025 Semi-Annual Performance Forecast [Current Period Performance Forecast Overview](index=1&type=section&id=Item%201.%20Current%20Period%20Performance%20Forecast%20Overview) The company forecasts H1 2025 net profit attributable to shareholders to be **RMB 180-230 million**, with non-recurring adjusted net profit at **RMB 140-190 million**, indicating significant year-on-year growth H1 2025 Performance Forecast | Metric | Estimated Amount (RMB million) | Year-on-Year Growth | | :--- | :--- | :--- | | **Net Profit Attributable to Shareholders** | 180 - 230 | 103.55% - 160.09% | | **Net Profit After Deducting Non-Recurring Gains and Losses** | 140 - 190 | 825.61% - 1,156.18% | - This performance forecast applies to situations where profitability is achieved, and net profit increases by over **50%** compared to the same period last year[3](index=3&type=chunk) - The data in this performance forecast has not been audited by a certified public accountant[4](index=4&type=chunk) [Prior Period Operating Performance and Financial Status](index=1&type=section&id=Item%202.%20Prior%20Period%20Operating%20Performance%20and%20Financial%20Status) The company's H1 2024 net profit attributable to shareholders was **RMB 88.43 million**, with non-recurring adjusted net profit at **RMB 15.13 million**, serving as a comparative baseline H1 2024 Operating Performance and Financial Status | Metric | H1 2024 Amount (RMB million) | | :--- | :--- | | Total Profit | 104.47 | | Net Profit Attributable to Shareholders | 88.43 | | Net Profit After Deducting Non-Recurring Gains and Losses | 15.13 | | Earnings Per Share | 0.14 yuan | [Primary Reasons for Current Period Performance Increase](index=2&type=section&id=Item%203.%20Primary%20Reasons%20for%20Current%20Period%20Performance%20Increase) The performance increase is primarily driven by the strong recovery of the film exhibition market and the diversified growth of film and television investment, production, and distribution businesses [Film Exhibition and Related Derivative Businesses](index=2&type=section&id=Item%203.1%20Film%20Exhibition%20and%20Related%20Derivative%20Businesses) This segment saw significant revenue and operational efficiency improvements due to overall market growth and the company's optimized cinema strategies and cost control efforts - In H1 2025, China's film market box office reached **RMB 29.23 billion**, a **22.91%** year-on-year increase, with **641 million** moviegoers, up **16.89%**[7](index=7&type=chunk) - The company achieved year-on-year revenue growth and improved operational efficiency in film exhibition by optimizing cinema strategies, increasing box office market share, diversifying operations, and implementing refined management[7](index=7&type=chunk) [Film and Television Investment, Production, and Distribution Businesses](index=2&type=section&id=Item%203.2%20Film%20and%20Television%20Investment%2C%20Production%2C%20and%20Distribution%20Businesses) The company's diversified investment strategy led to successful releases of multiple films and an expanded presence in the short-form drama market, creating new growth points - During the reporting period, the company released several films, including *Boonie Bears: Back to Earth*, *The Legend of the Condor Heroes: The Great Hero*, and *Caught in the Web*, maintaining a rich film reserve[7](index=7&type=chunk) - The company is increasing its focus on short-form drama businesses, expanding investment, production, and distribution, with multiple works launched or pending release[7](index=7&type=chunk) [Risk Warning](index=2&type=section&id=Item%204.%20Risk%20Warning) The company's preliminary, unaudited performance forecast has been pre-communicated with auditors, with final figures subject to the official semi-annual report - This performance forecast represents preliminary calculations by the company's finance department based on professional judgment and has not yet been audited by a certified public accountant[7](index=7&type=chunk) - The company has pre-communicated the performance forecast with its annual audit firm, confirming no significant uncertainties affecting its accuracy[7](index=7&type=chunk) - The final accurate financial data will be based on the company's officially disclosed 2025 semi-annual report, cautioning investors about investment risks[8](index=8&type=chunk)

横店影视（603103）公告，预计2025年半年度实现归属于上市公司股东的净利润为1.8亿元至2.3亿元， 与上年同期相比，将增加9157.01万元到1.42亿元，同比增加103.55%到160.09%。预计2025年半年度实 现归属于上市公司股东的扣除非经常性损益的净利润为1.4亿元至1.9亿元，与上年同期相比，将增加 1.25亿元到1.75亿元，同比增加825.61%到1,156.18%。 ...

Market Overview - A-shares experienced a pullback after initially rising, with the Shanghai Composite Index briefly surpassing 3500 points, closing at 3493.05, down 0.13% [2] - The Shenzhen Component Index closed at 10581.80, down 0.06%, while the ChiNext Index rose 0.16% to 2184.67 [2] - Total market turnover reached 15.274 billion, an increase of 528 million from the previous trading day [2] Financial Sector Performance - The financial sector showed strong performance, with notable gains in banking, futures, and brokerage stocks [3] - Industrial and Commercial Bank of China (ICBC) closed up 1.16%, reaching a historical high with a market capitalization of 2.8 trillion [3] - The recent rally in the banking sector is attributed to three main factors: the appeal of bank dividends in a low-interest environment, increased capital inflow from public funds, and accelerated conversion of bank bonds [3] Cultural and Media Sector Dynamics - The cultural and media sector was notably active, particularly in the short drama and gaming segments, with stocks like Fengshang Culture and Zhongwen Online seeing significant gains [5] - The short drama market is experiencing explosive growth, with current annual market size estimated between 30 billion to 35 billion, expected to exceed 50 billion next year [5] - The film industry is also showing positive trends, with box office revenues reaching 30 billion by July 8, marking the fastest pace in five years [5] Market Outlook - Analysts maintain a positive outlook for A-shares, with expectations of a steady upward trend despite recent fluctuations [6] - The potential for a Federal Reserve interest rate cut in Q3 and a loosening of domestic monetary policy could enhance asset valuations [6] - The "anti-involution" policy is expected to drive structural changes in the market, benefiting both technology and cyclical sectors [6]

Group 1 - The short drama concept stocks experienced significant movement, with Chinese Online rising over 10% and other companies like Huanrui Century hitting the daily limit, while iReader Technology and Baina Qiancheng increased by over 5% [1] - The report from Galaxy Securities indicates that the current market size for short dramas has reached between 30 billion to 35 billion yuan, with expectations to surpass 50 billion yuan next year [1]

Investment Rating - The report maintains a "Buy" rating for the media industry [6][10]. Core Insights - The media industry is expected to benefit from the integration of AI applications, particularly with the launch of GPT-5 and AI glasses, which are anticipated to drive new consumption patterns and enhance content creation across various sectors [5][17]. - The report emphasizes the importance of leveraging IP (Intellectual Property) to stimulate consumer spending and highlights the potential of AI to improve operational efficiency and create innovative applications [5][16]. Summary by Sections 1. Industry Review - The media sector has shown significant performance, with a 47.3% increase over the past 12 months, outperforming the Shanghai and Shenzhen 300 indices [2][15]. - The gaming index has seen substantial growth, while the animation index has experienced a decline [15][24]. 2. Key Recommendations - The report recommends several stocks within the media sector, including Tianzhou Culture, Wanda Film, and Mango Super Media, highlighting their potential for financial recovery and growth through AI integration [6][10]. 3. AI Glasses and Applications - AI glasses are positioned as a new focus for the summer season, with companies like Xiaomi and Rokid launching new products that enhance user interaction and content consumption [5][16]. - The report discusses the potential market expansion for AI glasses as they reach a technological tipping point, with applications in daily life and creative processes [16]. 4. Upcoming Market Trends - The report anticipates a surge in AI applications across various fields, including digital marketing, education, and entertainment, driven by the release of GPT-5 and advancements in AI technology [17][18]. - The summer box office is projected to benefit from new film releases, with total box office earnings exceeding 2 billion yuan as of early July 2025 [28][31]. 5. Company Performance and Forecasts - The report provides detailed earnings forecasts for key companies, indicating a positive outlook for several firms in the media sector, with expected EPS growth in the coming years [10][18].

Group 1 - The core viewpoint emphasizes the importance of promoting cultural exports, particularly in the areas of online literature, web series, and online games, referred to as the "new three samples" of culture [1][2] - The market size for online literature exports is projected to exceed 5 billion RMB in 2024, with an overseas user base of over 350 million [2] - The actual sales revenue of independently developed Chinese games in overseas markets is expected to reach $18.557 billion in 2024, reflecting a year-on-year growth of 13.39% [2] Group 2 - Zhejiang province is actively supporting the internationalization of its gaming industry, with a new policy document aimed at fostering the growth of 3A game projects and creating a gaming export industry cluster [3] - The gaming industry is recognized as a new engine for cultural output and economic growth, with national policies encouraging the development of the entire industry chain from IP creation to overseas operations [3] - Other provinces, such as Guangdong, are also implementing policies to enhance the innovation capacity and international competitiveness of their gaming industries, indicating a broader trend of cultural exports [3]

Group 1 - The A-share film and television theater sector is active at the beginning of trading, with Huayi Brothers reaching the daily limit, and Baina Qiancheng rising over 6% [1] - Other companies such as Hengdian Film, Happiness Blue Sea, and Bona Film are also experiencing gains [1]

Group 1 - The summer film season of 2025 is approaching, with films entering a concentrated scheduling period, and the market is expected to improve marginally due to quality supply [1][2][3] - The summer season is one of the most important periods for films, lasting from June to August, and historically contributes significantly to annual box office revenue, accounting for 28% to 34% of total box office in the past three years [1][2] - As of June 10, 2025, a total of 69 films have been scheduled for release, indicating room for growth compared to previous years, with notable films set to release in June, July, and August [2] Group 2 - Current market expectations are low, but there is optimism for marginal improvement in the overall market driven by supply, despite a decline in market heat since Q2 due to a lack of major releases [3] - The first quarter of 2025 saw a surge in viewership driven by "Nezha 2," but the absence of major films in Q2 has led to decreased market enthusiasm [3]

Group 1 - The company will participate in the 2024 annual performance briefing and the first quarter performance briefing for 2025 on June 20, 2025, from 14:00 to 17:00 [1][2] - The meeting will be held at the Shanghai Stock Exchange Roadshow Center and will include live interaction, video streaming, and online engagement [1][2] - Investors can submit questions from June 13, 2025, to June 19, 2025, before 16:00 through the Roadshow Center website or via the company's email [2][3] Group 2 - Key personnel attending the meeting include Chairman Zhang Yibing, Secretary of the Board Ma Junhua, CFO Liu Shengbo, and Independent Director Jiang Yuexiang [2] - Investors can participate in the meeting online by accessing the Roadshow Center website or scanning a QR code [2] - After the meeting, investors can view the meeting's details and main points on the Roadshow Center [3][4]