H&R(SZ:000892) Hua Xia Shi Bao·2025-04-11 09:35Core Viewpoint - Huayi Century continues to face significant challenges despite a slight improvement in financial performance, with ongoing losses and a decline in core talent [2][3][6]. Financial Performance - In 2024, Huayi Century reported a revenue of 385 million yuan, a year-on-year increase of 14.60% [3]. - The net loss attributable to shareholders was 241 million yuan, a reduction of 39.29% from the previous year's loss of 397 million yuan [3]. - The main source of revenue remains film and television sales, which decreased by 5.15% to 220 million yuan due to project cycle impacts [3]. - Credit impairment losses for 2024 amounted to 176 million yuan, with inventory balance at 789 million yuan and inventory impairment provision at 184 million yuan [3]. Challenges and Risks - Huayi Century is under investigation by the China Securities Regulatory Commission for information disclosure violations, which has contributed to its financial caution [4][5]. - The company has experienced a significant loss of core artists, reducing its talent pool from over 40 to around 20, impacting its revenue from artist management [6][7]. - The artist management revenue fluctuated significantly from 97.21 million yuan in 2020 to 164 million yuan in 2024, reflecting the impact of talent departures [7][8]. Strategic Initiatives - The company has initiated a "self-rescue" strategy, exploring new business areas such as short dramas, interactive dramas, and AIGC (Artificial Intelligence Generated Content) to enhance asset quality and profitability [9][10]. - Analysts suggest that Huayi Century needs to adapt its talent cultivation strategies to focus on developing strong actors rather than relying on fleeting popularity [10]. - The shift towards technology-driven content production is seen as essential for improving efficiency and reducing costs, thereby creating more commercial value [9][10].