SFC(SH:601595) Zheng Quan Zhi Xing·2025-06-13 09:40Core Viewpoint - Shanghai Film (601595.SH) is focusing on IP development and operation to enhance profitability, despite facing significant challenges in its core film exhibition and distribution businesses due to a sluggish market [1][8]. Financial Performance - In 2024, Shanghai Film's revenue was 6.904 billion yuan, a decrease of 13.19% year-on-year, and only 62% of its 2019 revenue [3][4]. - The company's net profit attributable to shareholders was 900.5 million yuan, down 29.08% year-on-year, with a significant drop in net profit after deducting non-recurring items to 17.36 million yuan, a 72.32% decline [3][4]. - Non-recurring income became a crucial support for the company's performance, contributing 72.9% of total profit, with 50.97 million yuan from non-current asset disposals [3]. Market Conditions - The domestic film market in 2024 saw a total box office of 42.502 billion yuan, a decline of 22.63% year-on-year, with attendance dropping by 22.27% to 1.009 billion viewers [2]. - The average ticket price decreased by 0.47% to 42.1 yuan, and cinema occupancy rates fell to 5.8%, down 2.13% year-on-year [2]. Business Segments - The film exhibition business, which accounts for over 60% of total revenue, reported a revenue of 4.545 billion yuan in 2024, a decrease of 17.33% year-on-year, and a significant drop in profitability with a gross margin of -2.66% [5][6]. - The film distribution business generated 20.4 million yuan in revenue, down 38.04% year-on-year, with its revenue share in total revenue declining to 2.96% [7]. IP Operations - The IP operation business emerged as a highlight in 2024, achieving a revenue of 66.18 million yuan, a year-on-year increase of 62.74%, and a gross margin of 90.87% [9][10]. - Shanghai Film has made strategic acquisitions to enhance its IP portfolio, including classic animation and film rights, and has engaged in various commercial collaborations to boost market exposure [8][9].