[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Company Profile](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) The reporting entity is Damai Entertainment Holdings Limited, formerly Alibaba Pictures Group Limited, renamed on June 5, 2025, and is incorporated in Bermuda with stock code 1060 - The company's name was changed from "Alibaba Pictures Group Limited" to "Damai Entertainment Holdings Limited", effective June 5, 2025[4](index=4&type=chunk) [Chairman's Statement](index=3&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) [Strategic Transformation and Market Insights](index=3&type=section&id=%E6%88%B0%E7%95%A5%E8%BD%89%E5%9E%8B%E8%88%87%E5%B8%82%E5%A0%B4%E6%B4%9E%E5%AF%9F) The company has successfully transformed from a film content producer into a diversified entertainment ecosystem operator, driven by a "Content + Technology" strategy and global expansion - The company's strategy has shifted from a sole film and entertainment content producer to a diversified entertainment ecosystem operator covering the entire pan-entertainment industry chain, including live entertainment and IP derivative development[7](index=7&type=chunk) - A live entertainment ecosystem has been built with Damai at its core, achieving **strong Gross Merchandise Volume (GMV) growth for two consecutive years** and launching an international ticketing system to accelerate global expansion[8](index=8&type=chunk) - The IP derivative business achieved leapfrog growth, focusing on **"full-chain IP development"**, with its Alifish platform enhancing commercialization efficiency through an "IP2B2C full-chain service model"[10](index=10&type=chunk) - The company continues to deepen the application of AI technology in the film and television industry chain, upgrading it from a tool to a core engine to drive intelligent business transformation[12](index=12&type=chunk) - The globalization strategy is accelerating, using the Greater Bay Area as a pivot point to achieve two-way connectivity and deep integration between domestic and overseas markets[13](index=13&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Offline Entertainment Market Review](index=6&type=section&id=%E7%B7%9A%E4%B8%8B%E5%A8%9B%E6%A8%82%E5%B8%82%E5%A0%B4%E5%9B%9E%E9%A1%A7) China's offline entertainment market showed divergence, with a decline in the film sector but strong growth in the live performance and IP licensing markets **Key Offline Entertainment Market Data** | Market | Metric | Reporting Period Data | YoY Change | | :--- | :--- | :--- | :--- | | Film Market | Total Box Office | Approx. RMB 50.5 billion | Down approx. RMB 5.1 billion | | | Admissions | Approx. 1.17 billion | Down approx. 160 million | | Performance Market | Total Box Office Revenue | Approx. RMB 57.954 billion | +15.37% | | | Large-scale Concert Box Office | Exceeded RMB 26 billion | +78.1% | | IP Licensing Market | Total Retail Sales of Licensed Goods | Approx. RMB 155.09 billion | Seven consecutive years of growth | [Overall Business Review and Financial Performance](index=7&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) The company achieved resilient growth driven by its "Content + Technology" strategy, with significant increases in revenue, net profit, and adjusted EBITA, alongside a business segment reorganization **Key Financial Indicators for the Reporting Period** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 6.702 billion | 5.036 billion | 33% | | Net Profit Attributable to Owners | 364 million | 285 million | 28% | | Adjusted EBITA | 809 million | 504 million | 61% | - During the reporting period, the company restructured its operating segments from five to four: "Film Technology, Investment, Production, and Distribution Platform", "Damai", "IP Derivative Business", and "Drama Series Production"[18](index=18&type=chunk) **Segment Performance (For the year ended March 31)** | Segment | Revenue (RMB in thousands) | Segment Results (RMB in thousands) | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Film Technology, Investment, Production, and Distribution Platform | 2,711,809 | 2,999,459 | 73,209 | 811,901 | | Damai | 2,057,205 | 612,585 | 1,230,283 | 280,565 | | IP Derivative Business | 1,433,393 | 827,545 | 380,349 | 217,764 | | Drama Series Production | 499,919 | 596,124 | 25,403 | 14,459 | | **Total** | **6,702,326** | **5,035,713** | **1,709,244** | **1,324,689** | [Segment Business Analysis](index=9&type=section&id=%E5%88%86%E9%83%A8%E6%A5%AD%E5%8B%99%E5%88%86%E6%9E%90) Segment performance diverged, with strong growth in Damai and IP Derivatives, while the Film segment declined and the Drama Series segment saw mixed results [Film Technology, Investment, Production, and Distribution Platform](index=9&type=section&id=%E9%9B%BB%E5%BD%B1%E7%A7%91%E6%8A%80%E8%88%87%E6%8A%95%E8%B3%87%E8%A3%BD%E4%BD%9C%E5%AE%A3%E7%99%BC%E5%B9%B3%E5%8F%B0) Amid a declining film market, this segment's revenue and performance fell by 10% and 91% respectively, despite initiatives like "Tao Mai VIP" and tech investments **Film Technology, Investment, Production, and Distribution Platform Performance** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2.712 billion | 2.999 billion | -10% | | Segment Results | 73 million | 812 million | -91% | - Tao Piao Piao and Damai jointly launched the "Tao Mai VIP" membership system, integrating film and performance consumption scenarios to effectively retain high-value consumer loyalty[27](index=27&type=chunk) - The company continues to increase investment in technologies such as AI, digital humans, and virtual production, having built four virtual production studios to reduce costs[32](index=32&type=chunk) [Damai](index=12&type=section&id=%E5%A4%A7%E9%BA%A5) Damai delivered robust performance with revenue and segment results growing 236% and 339% respectively, driven by the booming live entertainment market **Damai Segment Performance** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2.057 billion | 613 million | +236% | | Segment Results | 1.23 billion | 281 million | +339% | - Damai has recorded **high-speed growth in Gross Merchandise Volume (GMV) for two consecutive years**, providing ticketing services for nearly all major concerts in China[36](index=36&type=chunk) - In live entertainment content, Damai has accumulated six major content labels and participated in the investment and production of over 120 IPs, covering various categories[38](index=38&type=chunk) [IP Derivative Business](index=14&type=section&id=IP%E8%A1%8D%E7%94%9F%E6%A5%AD%E5%8B%99) The IP derivative business became a key growth engine, with revenue and segment results increasing by 73% and 75% respectively **IP Derivative Business Segment Performance** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1.433 billion | 828 million | +73% | | Segment Results | 380 million | 218 million | +75% | - Retail sales of Alifish's licensed IP products grew substantially, driving **Alifish's revenue growth by over 90%**[41](index=41&type=chunk) - The collectible toy brand "KOITAKE" has collaborated with over 40 film and television IPs, including "The Legend of Shen Li" and "Empresses in the Palace"[42](index=42&type=chunk) [Drama Series Production](index=15&type=section&id=%E5%8A%87%E9%9B%86%E8%A3%BD%E4%BD%9C) The drama series production segment's revenue declined by 16%, but its segment results grew by 76% due to a focus on high-quality content **Drama Series Production Segment Performance** | Indicator | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 500 million | 596 million | -16% | | Segment Results | 25 million | 14 million | +76% | [Outlook and Strategic Planning](index=15&type=section&id=%E5%89%8D%E6%99%AF%E8%88%87%E6%88%B0%E7%95%A5%E8%A6%8F%E5%8A%83) The company's future strategy focuses on four core pillars: content leadership, user growth, commercial derivatives, and overseas expansion - The company will continue to advance its four strategic plans: - **Content Leadership**: Enhance production capabilities across multiple content categories like films, drama series, and live performances - **User Growth**: Accelerate the merger of film and performance ticketing platforms to create a one-stop ticketing service - **Commercial Derivatives**: Further scale up the IP derivative business - **Overseas Expansion**: Expand into Asia and globally, starting from the Greater Bay Area[47](index=47&type=chunk) [Financial Review](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews financial performance, including expense changes, liquidity, capital structure, a major acquisition, and employee information **Expense and Income Overview** | Item | Reporting Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 789 million | 710 million | +11% | | Administrative Expenses | 1.237 billion | 978 million | +27% | | Net Finance Income | 193 million | - | - | **Financial Resources and Liquidity (As of March 31, 2025)** | Indicator | Amount (RMB) | | :--- | :--- | | Cash, cash equivalents and bank deposits due within one year | Approx. 3.365 billion | | Short-term borrowings | Approx. 397 million | | Gearing Ratio | Zero (Net cash position) | - A major acquisition was completed during the period, acquiring a 70% equity interest in Dongyang Meira for **RMB 350 million** to offset a loan of the same amount owed by Huayi Brothers[56](index=56&type=chunk) - As of the period end, the Group had **1,733 employees**, an increase from 1,455 in the prior year, with total staff costs of approximately RMB 885 million[58](index=58&type=chunk) [Biographical Details of Directors and Senior Management](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4%E5%B1%A5%E6%AD%B7%E8%B3%87%E6%96%99) [Profiles of Directors and Senior Management](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E5%B1%A4%E7%B0%A1%E4%BB%8B) This chapter details the backgrounds of the executive directors, INEDs, and company secretaries, noting the resignation of a non-executive director during the period - The core executive director team includes: - **Mr. Fan Luyuan**: Chairman and CEO, an Alibaba partner who previously worked at Alipay - **Mr. Li Jie**: President, responsible for film investment, promotion, distribution, and user platform business in mainland China - **Mr. Meng Jun**: Chief Financial Officer, with extensive financial management experience across various Alibaba Group business units[60](index=60&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) - During the reporting period, Mr. Dong Benhong resigned as a non-executive director on January 10, 2025[71](index=71&type=chunk) [Report of the Directors](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A) [Business and Performance](index=21&type=section&id=%E6%A5%AD%E5%8B%99%E8%88%87%E6%A5%AD%E7%B8%BE) The company's principal activity is investment holding, and the Board does not recommend the payment of a dividend for the fiscal year - The Directors **do not recommend the payment of a dividend** for the financial year ended March 31, 2025[75](index=75&type=chunk) [Share Incentive Schemes](index=25&type=section&id=%E8%82%A1%E4%BB%BD%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83) This section details the company's share incentive plans, including the terminated 2012 Scheme and the current 2021 Scheme and Share Award Scheme - The "2012 Share Option Scheme" was terminated on September 6, 2021, and replaced by the "2021 Share Option Scheme"[94](index=94&type=chunk) - As of the end of the reporting period, **12,375,000 outstanding share options** remained under the "2012 Share Option Scheme"[118](index=118&type=chunk) - During the period, the company granted **161,235,222 award shares** under the Share Award Scheme, while 162,342,142 shares vested[153](index=153&type=chunk) [Connected Transactions](index=48&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) This section discloses ongoing connected transactions, primarily with Alibaba Group, and explains the contractual arrangements (VIE structure) used to control restricted businesses in China [Continuing Connected Transactions](index=51&type=section&id=%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) Details 29 continuing connected transactions essential for daily operations, covering services like operations, payment, marketing, and cloud with Alibaba ecosystem partners **Selected Major Continuing Connected Transactions (FY2025)** | Transaction Type | Counterparty | Annual Cap (RMB) | Actual Amount (RMB) | | :--- | :--- | :--- | :--- | | Operation Services Agreement | Tmall Entities | 140 million | 99.057 million | | Payment Services Framework Agreement | Alipay | 150 million | 124 million | | Copyright Transfer Framework Agreement | Youku Technology | 1.9 billion | 426 million | | Shared Services Framework Agreement | Alibaba.com | 136 million | 129 million | | Cloud Services Framework Agreement | Alibaba Cloud | 56 million | 50.391 million | [Contractual Arrangements (VIE Structure)](index=94&type=section&id=%E5%90%88%E7%B4%84%E5%AE%89%E6%8E%92%20(VIE%E6%9E%B6%E6%A7%8B)) This explains the two sets of contractual arrangements (VIE structure) used to control and consolidate restricted onshore businesses, detailing their legal basis, terms, risks, and mitigation measures - Due to PRC laws restricting foreign investment in businesses such as film production and distribution, broadcasting, and value-added telecommunications, the Group uses a **Contractual Arrangement (VIE structure)** to gain effective control over and consolidate its onshore operating companies[246](index=246&type=chunk)[302](index=302&type=chunk)[353](index=353&type=chunk) - **Contractual Arrangement I** primarily involves entities like Zhonglian Jinghua and Beijing Ali Tao, enabling operations in restricted businesses like film, drama series, and ticketing[246](index=246&type=chunk) - **Contractual Arrangement II** was established for the acquisition of the Damai business, involving entities like Beijing Damai and Jinmai Technology to operate in restricted areas like live performances and online ticketing[318](index=318&type=chunk) - The company acknowledges risks associated with the VIE structure, including potential non-compliance rulings from the PRC government, unenforceability of agreements, and potential conflicts of interest[306](index=306&type=chunk)[371](index=371&type=chunk) [Corporate Governance Report](index=127&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) [Corporate Governance Overview](index=127&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E6%A6%82%E8%BF%B0) The company complied with most Corporate Governance Code provisions, with the only deviation being the combined role of Chairman and CEO - The company deviated from code provision C.2.1 of the Corporate Governance Code, as the roles of Chairman and CEO are not separate and are both held by Mr. Fan Luyuan[407](index=407&type=chunk) [Board of Directors](index=128&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) The Board comprises six directors, meeting the required number of INEDs, and has adopted a board diversity policy **Board Meeting Attendance** | Director Name | Position | Board Meeting Attendance | General Meeting Attendance | | :--- | :--- | :--- | :--- | | Mr. Fan Luyuan | Chairman & CEO | 7/7 | 1/1 | | Mr. Li Jie | Executive Director | 7/7 | 1/1 | | Mr. Meng Jun | Executive Director | 7/7 | 1/1 | | Ms. Song Lixin | Independent Non-executive Director | 7/7 | 1/1 | | Mr. Tong Xiaomeng | Independent Non-executive Director | 7/7 | 1/1 | | Mr. Chan Chi Hong | Independent Non-executive Director | 7/7 | 1/1 | [Board Committees](index=136&type=section&id=%E8%91%A3%E4%BA%8B%E5%A7%94%E5%93%A1%E6%9C%83) The Board has four committees: Remuneration, Audit, Nomination, and Executive, whose composition, roles, and work during the year are detailed - **Remuneration Committee**: Chaired by Mr. Tong Xiaomeng, responsible for reviewing and recommending director remuneration[439](index=439&type=chunk) - **Audit Committee**: Chaired by Mr. Chan Chi Hong, responsible for overseeing financial reporting, external auditors, and internal control systems[448](index=448&type=chunk) - **Nomination Committee**: Chaired by Mr. Fan Luyuan, responsible for reviewing Board structure and nominating director candidates[456](index=456&type=chunk) - **Executive Committee**: Comprised of the three executive directors, responsible for handling and monitoring daily management matters[461](index=461&type=chunk) [Accountability and Audit](index=142&type=section&id=%E5%95%8F%E8%B2%AC%E5%8F%8A%E6%A0%B8%E6%95%B8) This section outlines responsibilities for financial reporting and details the three-line model for risk management and internal control - The company has established a **three-line model for risk management**: the first line is business operations teams; the second is risk management functions (finance, legal, security, internal control); the third is independent supervision (internal audit, integrity)[473](index=473&type=chunk)[474](index=474&type=chunk)[475](index=475&type=chunk) **Key Risks and Mitigation Measures** | Key Risk | Risk Description | Risk Mitigation Measures | | :--- | :--- | :--- | | Market Risk | Declining activity in the film market versus rising demand in the performance market; potential operational issues with partners | Execute "Content + Technology" strategy, stabilize ticketing platform advantages, increase AI and virtual production investment; establish partner credit management | | Industry Policy Risk | Content may not be released due to regulatory, censorship, or tainted artist issues, causing losses | Closely monitor regulatory trends, strictly select themes, conduct due diligence on artists, and avoid collaboration with tainted artists | | Legal & Compliance Risk | User data breaches or content compliance issues (e.g., obscenity, defamation) could trigger penalties and reputational risk | Strictly enforce regulatory requirements, update user data protection policies, review platform content, and continuously improve user experience | - During the reporting period, total remuneration paid to the external auditor, PricewaterhouseCoopers, was **RMB 4,467,000**, all for audit services[487](index=487&type=chunk) [Shareholders' Rights and Communication](index=153&type=section&id=%E8%82%A1%E6%9D%B1%E6%AC%8A%E5%88%A9%E5%8F%8A%E6%BA%9D%E9%80%9A) The company outlines shareholders' rights and emphasizes its commitment to effective communication through various channels - Shareholders holding not less than **one-tenth of the paid-up capital** of the company have the right to request the Board to convene a special general meeting[496](index=496&type=chunk) [Independent Auditor's Report](index=156&type=section&id=%E7%8D%A8%E7%AB%8B%E6%A0%B8%E6%95%B8%E5%B8%AB%E5%A0%B1%E5%91%8A) [Audit Opinion and Key Audit Matters](index=156&type=section&id=%E5%AF%A9%E8%A8%88%E6%84%8F%E8%A6%8B%E8%88%87%E9%97%9C%E9%8D%B5%E5%AF%A9%E8%A8%88%E4%BA%8B%E9%A0%85) The auditor issued an unqualified opinion and highlighted three key audit matters: impairment assessments of goodwill, film and TV rights, and equity-accounted investments - The auditor issued an **unqualified opinion** on the consolidated financial statements[510](index=510&type=chunk) - Key Audit Matters included: - **Impairment assessment of goodwill**: Involves high uncertainty in estimating the recoverable amount of cash-generating units - **Impairment assessment of film and television rights**: The estimation of recoverable amounts is subject to high uncertainty - **Impairment assessment of investments accounted for using the equity method**: Involves significant estimates and assumptions in determining the recoverable amount[516](index=516&type=chunk) [Consolidated Financial Statements](index=167&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Consolidated Statement of Profit or Loss](index=167&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The statement shows a 33% revenue increase to RMB 6.702 billion and a 28% rise in profit attributable to owners to RMB 364 million **Consolidated Statement of Profit or Loss Summary (For the year ended March 31)** | Indicator (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 6,702,326 | 5,035,713 | | Gross Profit | 2,478,130 | 2,017,043 | | Operating Profit | 648,735 | 309,680 | | Profit for the year | 386,392 | 297,469 | | Profit attributable to owners of the Company | 363,576 | 284,790 | | Basic earnings per share (RMB cents) | 1.23 | 1.03 | [Consolidated Statement of Financial Position](index=169&type=section&id=%E7%B6%9C%E5%90%88%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of March 31, 2025, total assets reached RMB 23.5 billion and total equity was RMB 16.47 billion, with a notable increase in non-current assets **Consolidated Statement of Financial Position Summary (As at March 31)** | Indicator (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 11,360,623 | 8,366,224 | | Current assets | 12,138,760 | 13,093,676 | | **Total assets** | **23,499,383** | **21,459,900** | | **Equity and Liabilities** | | | | Total liabilities | 7,034,083 | 5,639,020 | | Total equity | 16,465,300 | 15,820,880 | | **Total equity and liabilities** | **23,499,383** | **21,459,900** | [Consolidated Statement of Cash Flows](index=173&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The statement shows a net cash outflow from operating activities of RMB 1.056 billion, resulting in a year-end cash balance of RMB 2.506 billion **Consolidated Statement of Cash Flows Summary (For the year ended March 31)** | Indicator (RMB in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (outflow)/inflow from operating activities | (1,055,774) | 822,191 | | Net cash outflow from investing activities | (1,276,188) | (298,758) | | Net cash inflow/(outflow) from financing activities | 429,623 | (93,550) | | Net (decrease)/increase in cash and cash equivalents | (1,902,339) | 429,883 | | Cash and cash equivalents at end of year | 2,505,808 | 4,413,697 | [Notes to the Consolidated Financial Statements](index=175&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes provide detailed explanations of accounting policies, segment reorganization, goodwill assessment, business combinations, and significant related party transactions - Note 5 discloses that the Group re-aggregated its operating segments into "Film Technology, Investment, Production, and Distribution Platform", "Damai", "IP Derivative Business", and "Drama Series Production", with comparative segment information restated[556](index=556&type=chunk)[740](index=740&type=chunk) - Note 15 shows the Group's total goodwill of **RMB 3.844 billion**, primarily allocated to the "Film Technology, Investment, Production, and Distribution Platform" segment (RMB 3.442 billion), with no impairment loss recognized[517](index=517&type=chunk)[778](index=778&type=chunk) - Note 36 details two major business combinations: the acquisition of a 70% stake in Dongyang Meira for **RMB 350 million**, generating goodwill of RMB 140 million; and the acquisition of a 51% stake in TH Entertainment for **RMB 200 million** in cash, generating goodwill of RMB 149 million[856](index=856&type=chunk)[862](index=862&type=chunk) [Financial Summary](index=294&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Five-Year Financial Summary](index=294&type=section&id=%E4%BA%94%E5%B9%B4%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section presents key performance and financial position data for the last five fiscal years, showing significant recent revenue growth and profitability **Five-Year Performance Summary (For the year ended March 31)** | RMB in thousands | 2021 | 2022 | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,858,897 | 3,652,170 | 3,500,553 | 5,035,713 | 6,702,326 | | (Loss)/Profit attributable to owners of the Company | (96,311) | 169,853 | (291,132) | 284,790 | 363,576 | **Five-Year Asset and Liability Summary (As at March 31)** | RMB in thousands | 2021 | 2022 | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | 15,540,882 | 15,576,698 | 15,571,638 | 21,459,900 | 23,499,383 | | Total liabilities | (1,702,944) | (1,533,696) | (1,461,427) | (5,639,020) | (7,034,083) | | Equity attributable to owners of the Company | 13,786,321 | 14,017,107 | 14,069,835 | 15,722,396 | 16,227,560 |

Group 1 - This summer marks the richest supply of animated films in the past five years, with 21 animated films released, compared to 12, 14, 12, and 17 in the previous four years [1] - The highest-grossing animated film so far is "Detective Conan: The Lonely Castle," with a box office of 353 million, while the highest-grossing domestic animation is "Time's Son" at 188 million [1] - The overall box office for the summer season has decreased by 14.56% compared to last year, prompting many films to adjust their release dates to boost performance [5] Group 2 - Original domestic animations have become a popular investment, with 7 out of 17 animated films this summer being purely original stories, heavily relying on traditional cultural themes [6][16] - The "New Culture" series by Pursuit Animation, which includes "Liao Zhai: Lan Ruo Temple," aims to present classic Chinese stories to a new generation [11][14] - The success of traditional cultural stories in attracting audiences is evident, as "Liao Zhai: Lan Ruo Temple" consistently breaks 10 million in daily box office, while "Time's Son" struggles to reach similar figures [16] Group 3 - The summer season has seen a significant presence of both domestic and international children's IPs, with "Pleasant Goat and Big Big Wolf" releasing its 10th film, achieving a box office of 91.23 million [19][21] - Classic international children's IPs like "The Smurfs" and "Pirates: The Last Adventure" are also making a comeback, although their reception in the domestic market varies [22][23] - The goal for children's IPs is to evolve into family-friendly content, which requires consistent content output and user habit cultivation [23] Group 4 - The ongoing popularity of the "二次元" (two-dimensional) culture is reflected in the growing user base, with nearly 500 million users and a market size exceeding 100 billion [24] - "Detective Conan: The Lonely Castle" is the highest-grossing animated film this summer, with a box office likely to stop at 400 million, while other films struggle to reach significant figures [31] - The film industry is exploring more business opportunities beyond box office revenue, with companies integrating IP content, merchandise, and interactive experiences [34][36]

Group 1: Market Performance - The Hong Kong stock market indices collectively rebounded, with the Hang Seng Index rising by 1.33%, the Hang Seng China Enterprises Index increasing by 1.51%, and the Hang Seng Tech Index gaining 1.65% [1] - The SaaS sector saw significant gains, with companies like Huilyang Technology rising by 15.56%, Yika by 10.11%, and Kingdee International by 7.27% [1] - The stablecoin concept also surged, highlighted by Yaocai Securities rising by 16.93% and Huajian Medical increasing by 20.41% following the U.S. House of Representatives passing a bill to establish a legal framework for stablecoins [1] Group 2: Sector Performance - Gold and non-ferrous metal stocks experienced a broad increase, with Lingbao Gold rising by 6.24% and China Molybdenum by 3.96% as spot gold prices rose above $3340 per ounce [2] - Major financial sectors, including Chinese brokerage and insurance stocks, also saw gains, with Xingsheng International up by 7.41% and China Life by 5.13% [2] Group 3: Automotive and Related Sectors - The automotive sector, including lithium battery and Tesla-related stocks, showed strong performance, with Tianqi Lithium rising by 5.82% and NIO increasing by 4.62% [3] - Other consumer sectors such as film, tobacco, and food stocks also performed well, with companies like Simoer International rising by 4.99% [3] Group 4: Declining Sectors - Sectors such as cosmetics, aviation, and luxury goods saw declines, with China Eastern Airlines dropping by 2.72% [3] - Notably, Chuangmeng Tiandi experienced a significant drop of 30.12%, despite expectations of turning a profit in the first half of the year [3]

Market Overview - The Hong Kong stock market opened with a gap up of over 1% and showed overall positive sentiment throughout the day [1] - The Hang Seng Index rose by 1.33%, gaining over 300 points, while the Hang Seng China Enterprises Index and the Hang Seng Tech Index increased by 1.51% and 1.65%, respectively, with the Hang Seng Tech Index reaching a new high since April [2][3] Sector Performance - Major technology and financial stocks contributed to the market's rise, with JD.com and Alibaba both increasing by approximately 3%, and China Pacific Insurance and China Taiping rising over 5% [3] - Biopharmaceutical stocks remained active, and wind power stocks saw significant gains, with Kingsoft Cloud rising over 8% [3] - Precious metals stocks performed well, with spot gold returning above $3,340, leading to a collective rise in non-ferrous metal stocks [4] Notable Stock Movements - Stablecoin concept stocks showed strong performance, with Yao Cai Securities rising over 16% and Yunfeng Financial increasing by over 15% [5][6] - The film and entertainment sector saw substantial gains, with Huayi Brothers rising over 12% and other related stocks also performing well [7] - Wind power stocks led the gains, with Dongfang Electric rising over 8% and Goldwind Technology increasing by over 6% [8] Declines in Specific Sectors - The gaming sector experienced declines, with major stocks like MGM China and Wynn Macau dropping over 2% [10] - Photovoltaic stocks weakened, with Xinyi Solar falling over 3% and other related stocks also declining [11] - Steel stocks continued to show negative performance, with several companies experiencing declines of over 2% [12] Capital Inflows - Southbound funds recorded a net inflow of HKD 5.931 billion, with the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect seeing net purchases of HKD 3.288 billion and HKD 2.643 billion, respectively [13] Future Outlook - The company expects continued investment opportunities in the Hong Kong and A-share markets, highlighting Hong Kong's role in the restructuring of the global financial order and the anticipated growth of quality assets in the region [14]

Market Overview - The Hong Kong stock market showed mixed performance with the Hang Seng Index down 0.08% to 24,498.95 points and a total turnover of HKD 236.41 billion [1] - The Hang Seng Tech Index rose by 0.56% to 5,448.85 points, indicating a positive trend in technology stocks [1] - Analysts from Dongwu Overseas Strategy Team maintain a cautiously optimistic view on Hong Kong stocks, suggesting potential inflows of new capital and a focus on dividend stocks and undervalued stocks [1] Blue Chip Performance - Li Auto-W (02015) led blue-chip stocks with a 9.73% increase, closing at HKD 124.1, contributing 24.08 points to the Hang Seng Index [2] - Other notable performers included China Biologic Products (01177) up 5.9% and Hansoh Pharmaceutical (03692) up 4.39% [2] - Conversely, Chow Tai Fook (01929) and New Oriental-S (09901) saw declines of 3.55% and 2.47%, respectively, negatively impacting the index [2] Sector Highlights - The biotechnology sector was notably strong, with innovative drug stocks leading the gains, such as Lepu Biopharma-B (02157) up 24.66% and CanSino Biologics (09926) up 10.71% [3][4] - The robotics sector also showed significant activity, with companies like Delta Electronics (00179) rising 14.54% [4] - Lithium stocks experienced gains, with Ganfeng Lithium (01772) up 5% and Tianqi Lithium (09696) up 4.38% [5] Gold Market Dynamics - The gold market faced pressure as spot gold prices fell below USD 3,330, influenced by a stronger dollar and reduced safe-haven demand [7] - Gold stocks collectively declined, with Lingbao Gold (03330) down 5.2% and Shandong Gold (01787) down 3.75% [6][7] Notable Stock Movements - Changfei Optical Fiber (06869) surged 19.61% to HKD 24.4, driven by positive developments in the optical module sector [8] - Fenbi (02469) rose 18.79% following the launch of its AI-based exam preparation system [9] - Dechang Electric (00179) reached a new high with a 14.54% increase, attributed to new joint ventures aimed at enhancing its engineering capabilities [10] - China Software International (00354) increased by 12.75%, benefiting from government support for the HarmonyOS application ecosystem [11]

Group 1: Market Overview - The Hang Seng Index rose by 0.07%, gaining 17 points to close at 24,534 points, while the Hang Seng Tech Index increased by 0.29% [1] - The early trading volume in the Hong Kong stock market reached HKD 128.7 billion [1] Group 2: Innovative Drug Sector - The innovative drug sector is experiencing a resurgence, driven by favorable policies and expectations from BD, with institutions noting that the current valuations remain attractive [1] - The Hang Seng Biotechnology Index surged by 4.41% [1] Group 3: Notable Stock Performances - Lepu Biotech-B (02157) saw a significant increase of over 13% [1] - Kangfang Biotech (09926) rose by 10.16% [1] - Kangruoya-B (02162) increased by 12.4% [1] - Sangfor Biopharma (01530) gained 8.94% [1] - Fudan Zhangjiang (01349) surged by 23.9% due to progress in ADC platform development [2] - King’s Ray Biotech (01548) increased by over 6%, with CARVYKTI sales in Q2 growing approximately 136% year-on-year [3] - Ascentage Pharma-B (06855) rose by 4.87%, with recent fundraising exceeding HKD 1.49 billion and the approval of a new drug application [4] - Terns Pharmaceuticals-B (02137) increased by over 6% after granting exclusive rights for a new drug in Greater China [5] - BeiGene (06160) rose by 8.39% after the acceptance of a listing application for a dual-specificity antibody [6] - Damai Entertainment (01060) increased by 7.27%, becoming the official channel for Scottish Super League matches [7] - Bilibili-W (09626) rose by over 4%, with growth in gaming and advertising business leading to a target price upgrade by Bank of America [8] - Fenbi (02469) surged by over 14% following the release of its AI test preparation program, with expectations of improved profit margins due to increased penetration [9] - Smoore International (06969) fell by 1%, with expected net profit decline of up to 35% in the first half of the year due to rising expenses [10]

Group 1: Market Performance - Bilibili-W (09626) rose over 4% due to growth in gaming and advertising, with Bank of America raising the target price to HKD 211 [1] - Innovation drugs continue to attract funding, with companies like 3SBio (01530) up over 8%, CanSino Biologics (09926) up over 12%, and others reaching historical highs [1] - DaMai Entertainment (01060) increased over 5% as it became the official channel for Scottish Super League matches, indicating growth in sports ticketing [1] Group 2: Industry Developments - The National Healthcare Security Administration of China initiated the 11th batch of centralized drug procurement, focusing on mature "old drugs" and excluding innovative drugs from the procurement [1] - In the first half of this year, the total amount of License out for Chinese innovative drugs approached USD 66 billion, surpassing the total BD transaction amount for 2024, indicating sustained interest from multinational corporations [1] Group 3: Company-Specific News - Meitu (01357) rose over 5% due to significant progress in overseas lifestyle and productivity scene expansion, including a strategic partnership with Alibaba [2] - Tengsheng Bo Pharmaceutical-B (02137) increased over 7% after granting exclusive rights for a new drug in Greater China to Health元 Group [2] - Smoore International (06969) fell over 2% as it expects a profit decline of up to 35% in the first half of the year due to increased expenses [2] Group 4: Notable Stock Movements - Blueport Interactive (08267) surged over 40% after establishing the LK Crypto division to accelerate Web3 and RWA layout [2] - Gilead Sciences-B (01672) saw an early morning increase of over 11% as clinical research for ASC47 in treating obesity was completed [2] - MicroPort Medical (0853.HK) rose over 6% as it considers a non-binding proposal to restructure its CRM business [3]

Market Overview - The current market is characterized by volatility, with the Nasdaq reaching a historical high primarily driven by Nvidia, while other sectors remain lackluster, indicating a sentiment-driven market rather than a solid fundamental basis [1] - The Hong Kong stock market experienced a slight decline of 0.29% today, reflecting the overall cooling of market conditions [1] Trade and Tariff Developments - President Trump announced upcoming tariffs on smaller countries, expected to be "slightly above 10%" [1] - NATO Secretary General warned that Brazil, China, and India could face secondary sanctions from the U.S. if Russia does not reach a peace agreement with Ukraine [1] - The Chinese Foreign Ministry stated that there are no winners in a trade war, emphasizing that coercion will not resolve issues [1] Semiconductor and AI Developments - Nvidia's CEO Huang Renxun highlighted the demand for H20 orders, noting its superior ecosystem efficiency compared to domestic alternatives [2] - InnoScience, a leader in GaN power devices, plans to increase its monthly production capacity from 13,000 to 20,000 wafers by the end of 2025, with a long-term goal of 70,000 wafers [2] - Huang acknowledged China's AI models as "world-class," suggesting that U.S. restrictions on high-end chips could accelerate China's AI development [2] Pharmaceutical Sector Insights - The pharmaceutical market is currently benefiting from innovative drugs that are not subject to centralized procurement, thus protecting profit margins [3] - Lijun Pharmaceutical's innovative drug H001 has completed its Phase II clinical trials, showing promise in preventing venous thromboembolism after orthopedic surgeries [3] - The latest centralized procurement list includes several Hong Kong-listed pharmaceutical companies, indicating potential market share growth for those that secure bids [4] Entertainment and Media Sector - The summer box office has reached 3.3 billion yuan, with notable films leading the ticket sales [5] - Companies like Huayi Brothers and Maoyan Entertainment are positioned to benefit from the summer film season, with significant contributions expected to their revenues [5] - The short video industry is experiencing explosive growth, with global in-app purchases nearing $700 million in Q1 2025, a nearly fourfold increase year-on-year [6] Precious Metals Investment - Major financial institutions are advising investors to seek refuge in precious metals due to potential tariffs, with gold, silver, and copper identified as favorable investments [7] - Morgan Stanley and Goldman Sachs have raised their gold price targets, predicting prices could reach $3,800 and $3,700 per ounce, respectively, by year-end [7] Travel and Tourism Sector - Tongcheng Travel reported a 13.2% year-on-year revenue growth in Q1 2025, driven by a strong performance in its core OTA business [8] - The company is expanding its international business, with significant growth in international ticket sales and hotel bookings [9] - Tongcheng's acquisition of Wanda Hotels is expected to enhance its high-end hotel management capabilities, contributing to future revenue growth [9]

Core Insights - The Chinese concert ticketing market is experiencing rapid growth, with ticket sales expected to exceed 26 billion in 2024, representing a year-on-year increase of 78.1% [4] - The secondary ticket market plays a crucial role in redistributing ticket resources, providing additional purchasing avenues for consumers unable to secure tickets through primary sales [1][2] Group 1: Market Dynamics - The ticketing market consists of a primary market with fixed pricing and a secondary market characterized by dynamic pricing, allowing for price fluctuations based on demand [1][2] - The secondary market enhances consumer satisfaction and market vibrancy by addressing supply-demand imbalances, particularly for popular events [1] Group 2: Industry Growth - The concert ticketing market is projected to grow significantly, with the number of attendees surpassing 29 million in 2024, marking a 45.0% increase year-on-year [4] - Major ticketing platforms like Maoyan and Damai are reporting substantial growth in gross merchandise volume (GMV), with Maoyan's concert ticketing GMV increasing by approximately 90% and Damai's revenue reaching 2.057 billion, up 236% [5][7] Group 3: Regulatory Challenges - Despite regulatory efforts to curb ticket scalping and refund issues, challenges remain, with reports indicating that publicly available tickets for some concerts are less than 50% of total ticket sales [9] - The 2023 regulations mandate real-name ticket purchases and entry, but enforcement and compliance issues persist, leading to ongoing consumer complaints [9][11] Group 4: Consumer Complaints - The primary complaint in the online ticketing sector is related to refund issues, accounting for 56.94% of complaints, followed by unfair terms at 19.44% [11][14] - Recommendations include improving legal frameworks for refunds, enhancing consumer awareness of rights, and increasing penalties for scalping to maintain market order [14]

Group 1 - The Hang Seng Index rose by 0.20%, gaining 47 points to close at 24,250 points, while the Hang Seng Tech Index increased by 0.41% [1] - The Hong Kong stock market saw a morning trading volume of HKD 144 billion [1] - Notable gainers included Innovent Biologics (up over 5%), BeiGene (up 4.46%), and CSPC Pharmaceutical (up 3.88%) [1] Group 2 - Bilibili-W rose by 4.79% as HSBC expressed optimism about its gaming and advertising business, suggesting potential for increased shareholder returns [1] - Yunfeng Financial surged by 18.18% due to its strategic focus on digital currency and AI [1] - GDS Holdings (up 10.16%) announced the early conclusion of public fundraising for its Southern GDS Data Center REIT [1] Group 3 - Major declines were observed in the property sector, with R&F Properties falling by 5.36% and Sunac China down by 5.75%, as institutions expect continued pressure on the sector's performance [1] - Longpan Technology dropped over 4% due to ongoing challenges in the lithium battery industry, with projected losses of up to CNY 98.3 million for the first half [1] Group 4 - Ganfeng Lithium fell over 5% as the prices of lithium salts and battery products continued to decline, with expected losses exceeding CNY 300 million for the first half [2] - Chenming Paper experienced a drop of over 7% due to a major production base undergoing maintenance, with anticipated losses exceeding CNY 3.5 billion for the first half [3] - Beijing Jingcheng Machinery Electric Company also fell over 7%, projecting a net loss of up to CNY 18 million amid pressure on its gas storage and transportation export business [3] - China Silver Group declined over 8% after announcing a discounted placement of shares, aiming to raise HKD 207 million [3]