Core Viewpoint - The company reported a strong performance in 1H25, with revenue and profit figures meeting market expectations, indicating a positive growth trajectory in both short and long-form content production [1][2]. Group 1: Financial Performance - The company achieved a revenue of 401 million yuan in 1H25, representing a year-on-year growth of 108% [1]. - Non-IFRS net profit reached 14.44 million yuan, marking a turnaround from losses and falling within the forecast range of 13-15 million yuan [1]. - Gross margin improved to 25.2% in 1H25, with a reduction in sales and management expenses contributing to profitability [2]. Group 2: Content Production and Strategy - The company is focusing on high-quality drama development, with short drama revenue exceeding 50 million yuan in 1H25 and a significant increase in short drama output, totaling over 3,400 minutes, a 70% year-on-year increase [1][2]. - Long-form content production is progressing steadily, with the release of the series "书卷一梦" and ongoing projects in various stages of production, indicating a robust pipeline for future releases [1][2]. Group 3: International Expansion - The company’s overseas business revenue surpassed 33 million yuan in 1H25, approximately 2.5 times that of 1H24, highlighting successful international distribution strategies [2]. - The company is actively expanding its distribution of long-form content in markets such as Vietnam, Malaysia, and Russia, with notable releases on multiple international platforms [2]. Group 4: Future Outlook - The company anticipates a gradual release of production capacity in 2026, with a focus on the elasticity of long-form content business [2]. - Adjustments to profit forecasts reflect the impact of new business investments, with a projected Non-IFRS net profit of 42.93 million yuan for 2025 and an increase to 173 million yuan for 2026 [2].

Core Viewpoint - CICC has downgraded the Non-IFRS net profit forecast for Lingmeng Film and Television (09857) for 2025 by 60.6% to 42.93 million yuan due to investments in new businesses like short dramas, while raising the 2026 forecast by 48.7% to 173 million yuan, reflecting expected capacity release in long dramas [1] Group 1: Financial Performance - For 1H25, the company reported operating revenue of 401 million yuan, a year-on-year increase of 108% [2] - The Non-IFRS net profit for 1H25 was 14.44 million yuan, turning profitable compared to the previous year, aligning with market expectations [1][2] - The company's gross margin for 1H25 improved to 25.2% [2] Group 2: Business Segments - The company is focusing on high-quality drama development and gradually increasing production capacity, with short drama revenue exceeding 50 million yuan in 1H25 [2] - In 1H25, the company launched over 3,400 minutes of short dramas, a 70% year-on-year increase, with a current scale of 16 episodes per month [2] - The overseas business generated over 33 million yuan in revenue in 1H25, 2.5 times that of 1H24, with strategic adjustments in distribution [2] Group 3: Future Outlook - The company anticipates gradual capacity release for long dramas post-2025, with several projects in production and preparation stages [3] - Upcoming long dramas include "Ziyue Gui" which aired on August 18, and others like "Yue Ming Qian Li" and "Zha Xi" are in the pipeline [3] - The company is advised to maintain focus on the release pace of long drama capacity and the potential for profit improvement [3]

Core Viewpoint - CICC has downgraded the Non-IFRS net profit forecast for Lingmeng Media (09857) for 2025 by 60.6% to 42.93 million HKD due to investments in new short-form content, while raising the 2026 forecast by 48.7% to 173 million HKD, reflecting expected capacity release in long-form content [1] Group 1: Business Performance - In the first half of 2025, Lingmeng Media reported revenue of 401 million HKD, a year-on-year increase of 108%, with Non-IFRS net profit of 14.44 million HKD, turning profitable and aligning with market expectations [1] - The company’s short-form content business generated over 50 million HKD in revenue in the first half of 2025, with a production capacity of over 3,400 minutes, a 70% year-on-year increase [2] Group 2: Long-form and Short-form Content Strategy - The company is focusing on high-quality drama development and gradually increasing production capacity, with a stable production pace for long-form content [2] - The long-form series "Shu Juan Yi Meng" has been released, and two additional projects have been completed, indicating a steady production rhythm [2] Group 3: International Business and Cost Management - In the first half of 2025, overseas business revenue exceeded 33 million HKD, 2.5 times that of the same period in 2024, with the series "Shu Juan Yi Meng" launched on multiple international platforms [3] - The company has improved its gross margin to 25.2% in the first half of 2025, with a reduction in sales and management expenses due to cost-cutting measures [3] Group 4: Future Outlook - The company anticipates gradual capacity release for long-form content in 2026, with several projects in various stages of production [4] - Ongoing attention is recommended for the release schedule and profitability improvement of long-form content [4]

Core Viewpoint - The company, Lingmeng Film and Television, reported significant growth in its mid-year performance for the fiscal year 2025, with a revenue of 401 million RMB, marking a year-on-year increase of 108.5%, and an adjusted net profit of 14 million RMB, indicating a turnaround from losses in the previous year [1] Group 1: Financial Performance - For the first half of 2025, the company achieved a revenue of 401 million RMB, which is a 108.5% increase compared to the previous year [1] - The adjusted net profit for the same period was 14 million RMB, showing a successful turnaround from losses [1] - The company is entering a profit conversion cycle in 2025 after a period of adjustment and preparation in 2024 [1] Group 2: Content Development and Production - Lingmeng Film and Television is focusing on high-quality content development, particularly in long and short drama series, which has driven revenue growth [1] - The long drama "Shu Juan Yi Meng" performed exceptionally well, achieving high ratings and significant viewership across platforms [2] - The company has multiple projects in various stages of production, including "Zi Ye Gui" currently airing and others in post-production or preparation phases [2] Group 3: Short Drama Business - The short drama segment is emerging as a key growth driver, with over 3,400 minutes of content launched, representing a year-on-year increase of over 70% [3] - The company’s short dramas have achieved significant viewership and engagement, with several titles ranking highly on various platforms [3] - Revenue from the short drama segment exceeded 50 million RMB, showing substantial growth compared to the previous year [3] Group 4: International Expansion - The company’s overseas business saw a significant increase, with revenue surpassing 33 million RMB, approximately 2.5 times that of the previous year [4] - The drama "Shu Juan Yi Meng" was successfully launched on multiple international platforms, achieving top rankings in several countries [4] - The company is exploring localized productions and small language micro-dramas, expanding its international reach [4] Group 5: Strategic Vision - The year 2025 is positioned as a "production year" for the company, leveraging policy benefits to enhance content production and commercial capabilities [5] - The company aims to build a diversified content matrix to achieve stable and robust growth in performance [5]