Drama Production and Content Strategy - By the end of June 2025, the Group has produced and distributed a total of 26 high-quality drama series, with 24 being original series where the Group acted as the lead/sole investor and executive producer[7]. - The Group's original drama series include popular titles such as "A Love for Separation," "Nothing but Thirty," and "Novoland: Eagle Flag," focusing on contemporary themes like family life and female empowerment[9]. - The Group is committed to diversified growth strategies, exploring new avenues such as content marketing, short drama series, overseas business, and IP derivative development to maximize the commercial value of proprietary IP rights[10]. - The original drama series "A Dream within a Dream" achieved significant viewership, with over 8 billion views on Douyin, ranking TOP1 among drama series during the same period[35]. - Several new projects are in preparation, scheduled to start shooting in the second half of 2025, including "A Journey to Glow" and "Showdown"[35]. - The Group aims to produce over 200 episodes of long drama series throughout 2025, focusing on premium original content[47]. - The Group is actively exploring the production and distribution of mini and short drama series in niche languages, with several projects currently in production[43]. - The Group's short commercial-break dramas achieved significant popularity, with multiple titles ranking TOP1 on various platforms[41]. Financial Performance - Revenue for the six months ended June 30, 2025, amounted to approximately RMB 401.3 million, representing an increase of 109% from approximately RMB 192.5 million for the same period in 2024[24]. - Gross profit for the same period was approximately RMB 101.0 million, an increase of 140% from approximately RMB 43.0 million in 2024[24]. - Net profit for the six months ended June 30, 2025, was approximately RMB 11.3 million, compared to a net loss of approximately RMB 52.9 million for the same period in 2024[24]. - Adjusted net profit for the same period was approximately RMB 14.4 million, a turnaround from an adjusted net loss of approximately RMB 49.4 million in 2024[24]. - The Group's total revenue increased by 109% from RMB192.5 million for the six months ended June 30, 2024, to RMB401.3 million for the six months ended June 30, 2025, primarily due to the launch of the 40-episode drama "A Dream within a Dream"[55]. - Gross profit rose by 135% from RMB43.0 million for the six months ended June 30, 2024, to RMB100.99 million for the six months ended June 30, 2025[58]. - The gross profit margin improved by 2.8 percentage points from 22.4% for the six months ended June 30, 2024, to 25.2% for the six months ended June 30, 2025[59]. - The Group's cost of sales increased by 101% from RMB149.5 million for the six months ended June 30, 2024, to RMB300.3 million for the six months ended June 30, 2025[57]. - Other income and gains decreased by 39.4% from RMB46.5 million for the six months ended June 30, 2024, to RMB28.2 million for the six months ended June 30, 2025[63]. - Administrative expenses decreased by 24.6% from RMB99.0 million for the six months ended June 30, 2024, to RMB74.7 million for the six months ended June 30, 2025[65]. - Finance costs increased by 56.7% to RMB2.3 million for the six months ended June 30, 2025, from RMB1.5 million for the six months ended June 30, 2024[66]. - The Group recorded a net profit of RMB11.3 million for the six months ended June 30, 2025, compared to a net loss of RMB52.9 million for the six months ended June 30, 2024[76]. - Income tax expense decreased to RMB1.5 million for the six months ended June 30, 2025, from RMB6.3 million for the six months ended June 30, 2024, due to the utilization of deductible losses from previous years[68]. - Revenue growth was driven by the broadcast of quality drama series and improved financial performance from new business lines such as short drama series[84]. Overseas Business and Distribution - The Group's overseas distribution revenue recorded notable growth year-on-year, with the first overseas localized long drama series recently broadcasting[27]. - The Group's overseas business revenue exceeded RMB 33 million in the first half of 2025, approximately 2.5 times higher than the same period in 2024[42]. - The original drama series "A Dream within a Dream" ranked TOP1 on the iQIYI International platform across eleven countries and regions in the first half of 2025[43]. Employee and Workforce Diversity - As of June 30, 2025, the Group had 185 employees, with approximately 76.8% being female, reflecting a commitment to workforce diversity[50][52]. Corporate Governance and Compliance - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all Directors for the six months ended June 30, 2025[122]. - The company will continue to review its corporate governance practices to ensure compliance with the CG Code[117]. - The company has established an Audit Committee to oversee financial reporting, internal controls, and risk management, comprising one non-executive Director and two independent non-executive Directors[126]. - The Board believes that the current structure of the Chairman and CEO roles, held by Mr. Su, will not impair the balance of power and authority within the company[116]. - The overall strategic and key business policies of the company are made collectively after thorough discussion among all Board members and senior managers[116]. Shareholder Interests and Options - The interests of directors and chief executives in the company include Mr. Su, Ms. Chen, and Ms. Xu, each holding approximately 37.94% of the shares through controlled corporations[142]. - As of June 30, 2025, Mr. Su directly holds 71,136,000 shares in the company[144]. - Faye Free Flight Limited and A&O Investment Limited, both wholly owned by Ms. Chen and Ms. Xu respectively, each hold 33,014,520 shares in the company[144]. - The direct interest held by Mr. Su, Ms. Chen, and Ms. Xu in Shanghai Linmon is 56.93%[149]. - The Pre-IPO Share Option Scheme allows for a maximum of 14,680,471 shares to be issued, which is 4.06% of the total issued shares as of the interim report date[165]. - As of June 30, 2025, 11,906,964 options have been granted under the Pre-IPO Share Option Scheme, representing 3.29% of the total issued shares[165]. - The 2024 Share Option Scheme allows for a maximum of 36,045,882 shares to be issued, representing 9.97% of the total issued shares of 361,575,527 as of the interim report date[190]. - The maximum number of shares issuable to service provider participants is 18,022,941, which is 4.98% of the total issued shares[190]. - The option exercise price will be determined by the Board and must be at least the higher of a specified minimum[200].
柠萌影视(09857) - 2025 - 中期财报