Core Insights - The company achieved operating revenue of 1.391 billion yuan in the first half of 2025, representing a year-on-year growth of 15.37%, while the net profit attributable to shareholders was a loss of 0.05 billion yuan, indicating a gradual narrowing of losses [1] - The company is experiencing continuous growth in core business revenue, with significant contributions from promotional services and licensed merchandise, which are expected to grow further due to upcoming events [1][2] Financial Performance - In Q2 2025, the company reported operating revenue of 735 million yuan and a net profit loss of 0.09 billion yuan [1] - The promotional services and gifts business generated a combined revenue of 1.1 billion yuan, showing a year-on-year increase of 63.89% [1] - The licensed merchandise business achieved revenue of 24.4694 million yuan, with a year-on-year growth of 74.50% and a gross margin of 30.84%, up 15.61% year-on-year [1] Business Development - The company has established a wholly-owned subsidiary, Yuanlong Yuanchuang Culture (Beijing) Co., Ltd., and launched a retail sub-brand "Yuanlong Yuanchuang" [2] - The company has opened its first retail space in Beijing and deployed NBA cultural vending machines in major cities including Beijing, Shanghai, Hangzhou, and Shenzhen [2] - Online channels have been expanded with flagship stores on platforms such as JD.com, Xiaohongshu, Douyin, and Tmall [2] Future Outlook - The company anticipates continued growth in licensed merchandise revenue, driven by events such as the Chengdu Universiade and the Guangdong-Hong Kong-Macao Greater Bay Area Games [1] - Profit forecasts for 2025-2027 are projected at 0.78 billion yuan, 1.19 billion yuan, and 1.64 billion yuan respectively, with EPS estimates of 0.30, 0.46, and 0.63 yuan per share [2] - The company maintains a "buy" rating based on stable growth in marketing services and ongoing product development and channel expansion [2]

Investment Rating - The report maintains an "Accumulate" rating for the company [7][5]. Core Views - The company achieved a total operating revenue of 1.391 billion RMB in H1 2025, representing a year-on-year increase of 15.37%. The net profit attributable to the parent company was a loss of 0.05 billion RMB, narrowing from a loss of 0.23 billion RMB in the same period last year [1][2]. - The company's "Big IP + Technology" strategy is progressing well, with significant growth in IP business and a positive outlook for future revenue streams [1][3]. Summary by Sections Financial Performance - In H1 2025, the company reported total operating revenue of 1.391 billion RMB, with Q2 revenue at 735 million RMB, reflecting a year-on-year increase of 11.59%. The gross profit margin was 12.54%, down 2.84 percentage points year-on-year [2][1]. - The company incurred a net loss of 0.05 billion RMB, improved from a loss of 0.23 billion RMB in the previous year, primarily due to a decline in gross margin and provisions for inventory and receivables [1][2]. Business Strategy - The company is expanding its IP resources and developing cultural products, with notable revenue growth in licensed merchandise, which reached 0.24 billion RMB, up 74.50% year-on-year [3]. - The company is also enhancing its digital capabilities through the establishment of an AI research institute and the development of a SaaS platform for digital community operations [4]. Profit Forecast and Valuation - The profit forecast for the company remains at 0.93 billion RMB for 2025, with a target price set at 21.65 RMB, corresponding to a PE ratio of 61 times for 2025 [5][8]. - The report indicates that the company is expected to benefit from the synergy of online and offline marketing services, alongside the successful progress of its IP business [5].