Content Production and Strategy - By the end of 2024, the Group has produced and distributed a total of 25 high-quality drama series, with 23 being original series where the Group acted as the lead/sole investor and executive producer[9]. - The Group's original drama series cover popular themes such as family life, education, and female empowerment, contributing to extensive discussions and positive value propositions[9]. - The Group is committed to diversified growth strategies, exploring new avenues such as content marketing, short drama series, overseas distribution, and IP derivative development[10]. - The Group aims to maximize the commercial value of its proprietary IP rights, reinforcing its leadership in the industry[10]. - The Group has a strong reserve of original IPs, which is a key driver for its business operations and market position[7]. - The Group's mission is to shape content by people and shape people with content, reflecting its commitment to quality and innovation in media[8]. - The Group aims to initiate production of new projects with over 200 episodes in the coming year, focusing on premium long-form drama series[49]. - The Group's short drama series business is expected to maintain scale development while producing premium content[49]. - The Group's strategy includes leveraging new business models in content marketing to expand strategic brand resources[49]. - The Group plans to explore new business models such as short drama series marketing and IP licensing, while also developing an artiste brokerage business[87]. Financial Performance - The Group's revenue for the year ended 31 December 2024 was approximately RMB657.0 million, a decrease of 46.2% compared to RMB1,221.8 million for the year ended 31 December 2023[26]. - Gross profit for the year ended 31 December 2024 was approximately RMB108.5 million, representing a decrease of 77.5% from approximately RMB481.6 million for the same period in 2023[26]. - Adjusted net loss for the year ended 31 December 2024 was approximately RMB184.2 million, compared to adjusted net profit of approximately RMB227.4 million for the same period in 2023[26]. - Net assets as of 31 December 2024 amounted to approximately RMB2,313.9 million, a decrease of 10.1% from RMB2,574.5 million as of 31 December 2023[27]. - The Group's total assets as of 31 December 2024 were approximately RMB3,217.9 million, down from RMB3,567.5 million as of 31 December 2023[29]. - The Group's total liabilities as of 31 December 2024 were approximately RMB904.0 million, compared to RMB992.9 million as of 31 December 2023[29]. - The Group's revenue and net profit for 2024 experienced a temporary year-on-year decrease due to a smaller number of drama series episodes broadcasted and ongoing investments in new businesses[54]. - The Group's cost of sales decreased by 25.9% from RMB740.2 million in 2023 to RMB548.5 million in 2024[95]. - Gross profit fell from RMB481.6 million in 2023 to RMB108.5 million in 2024, reflecting the impact of the broadcast situation of drama series[99]. - The gross profit margin decreased from 39.4% in 2023 to 16.5% in 2024[100]. - Other income and gains decreased by 43.7% from RMB121.7 million in 2023 to RMB68.5 million in 2024[101]. - Selling and distribution expenses increased by 70.7% from RMB93.0 million in 2023 to RMB158.7 million in 2024, primarily due to efforts to expand the short drama series business[102]. - The Group's adjusted net loss for the year ended December 31, 2024, was RMB184.2 million, compared to an adjusted net profit of RMB227.4 million in 2023[120]. Viewership and Audience Engagement - The average viewership per episode of the original drama series "Under the Skin II" ranked TOP1 across all platforms in Q4 of 2024[37]. - In 2024, the Group achieved over double growth in viewership, number of subscribers, and total viewing time on its overseas self-operated YouTube channels[44]. - The original drama series "Under the Skin II" achieved significant viewership, ranking TOP1 in Hong Kong, Taiwan, Korea, and TOP3 in Malaysia, while breaking viewership records on TRUEID in Thailand[79]. - The original drama series "In Between" ranked TOP2 in the urban romance drama category for 2024, with over 900 million exposures on Xiaohongshu, leading the Weibo Drama Influence List[60]. - "My Boss" reached a popularity rate exceeding 9,500 on Youku within 13 days of its release, ranking TOP5 in viewership for exclusive Youku dramas in the first half of 2024[60]. - Several short drama series recorded viewership exceeding 100 million, with recharge amounts per series exceeding RMB10 million, indicating top industry performance[72]. - The number of viewings, subscribers, and viewing time for self-operated overseas channels more than doubled year-on-year[78]. - In 2024, the Group's self-operated official YouTube channel recorded viewership exceeding 100 million, representing a year-on-year increase of 120%, with subscribers increasing by 180% and total viewing time increasing by 205%[79]. Product and IP Development - The Group successfully produced and released 3 original drama series and 1 cinema film in 2024, with the cinema film achieving good box office results for a non-holiday release[56]. - The sales volume of peripheral derivative products for the drama series "Under the Skin II" ranked among the top tier of drama series in 2024, securing the first place among modern drama series[45]. - The Group successfully launched over 200 peripheral derivative products for "Under the Skin II," with cotton-stuffed dolls selling out immediately, achieving a sales volume of one million in record time[82]. - The sales volume of peripheral products for "My Boss" ranked TOP1 among drama series products launched by Alifish in the first half of 2024[83]. - The Group's copyright purchase amount and number of copyrights reached the highest level in previous years, enhancing the influence and commercial value of its IPs[45]. - The Group plans to debut its first overseas localized project and continue diversifying its overseas business development[49]. - The overseas distribution of the film "The Unseen Sister" was released in multiple regions including Australia, the United States, Canada, and New Zealand, and was shortlisted for major film festivals[79]. Corporate Governance and Management - The listing date of the company was August 10, 2022, under stock code 9857[24]. - The Group's principal place of business is located in Shanghai, China, with additional operations in Hong Kong[18]. - The Group has established relationships with several major banks in China, supporting its financial operations and growth initiatives[23]. - As of December 31, 2024, the Group had 203 employees, with approximately 70.9% being female, maintaining a diverse workforce[92]. - The execution of the Supplemental Agreement on January 24, 2025, will not materially impact the control and corporate governance of the Company[159]. - Mr. Su, Ms. Chen, and Ms. Xu remain as a group of controlling shareholders following the Supplemental Agreement, while Mr. Zhou and others cease to be part of the controlling shareholders[160]. - Ms. Chen has approximately 20 years of experience in the planning, production, and marketing of TV series[167]. - Mr. Su has approximately 27 years of experience in the media industry and management[162]. - Ms. Xu Xiao'ou has approximately 18 years of experience in TV series production, having held various positions at Shanghai Radio and Television Station from 2006 to 2014[172]. - Ms. Wang Juan is currently the vice president of Tencent Online Video Business Unit, responsible for strategic planning and management of content copyright and development[179]. - Mr. Zhang Rong has over 10 years of investment experience, currently serving as a partner at Hony Capital, focusing on science, technology, and cultural creation sectors[181]. - Ms. Long Yu has been a member of the Bertelsmann Group Management Committee since 2011, advising on strategy formulation and development[185]. - Ms. Xu has been recognized with multiple awards, including "Producer of the Year" in 2023 by New Weekly[174]. - Ms. Wang obtained her MBA from China Europe International Business School in November 2017[180]. - Ms. Long has served as an independent non-executive director for various companies, providing independent judgment and oversight[185]. - Ms. Long has approximately 18 years of experience in the media industry and investment, having joined Bertelsmann Group in 2005[188]. - Ms. Long served as a principal at Bertelsmann Digital Media Investments, focusing on early-stage investments in innovative companies in the technology and media sectors[188]. - Ms. Long was the CEO of Bertelsmann China Corporate Center from 2008 to 2020, overseeing investment management and advisory services[189]. - Ms. Long has held various directorships, including Bitauto Holdings Limited and China Distance Education Holdings Limited, providing independent judgment to their boards[189]. - Ms. Long is an active member of the World Economic Forum's Young Global Leaders Advisory Council[191]. - Mr. Jiang Changjian has approximately 25 years of experience in political science and international politics, serving as an associate professor at Fudan University since 2001[192]. - Mr. Jiang has been an independent non-executive director of Sanxiang Impression Co., Ltd. since May 2018, providing independent judgment to the board[192]. - Mr. Jiang served as an independent non-executive director of BGI Genomics Co., Ltd. from June 2015 to June 2021[192]. - Ms. Long received a master's degree in business administration from Stanford Graduate School of Business in June 2005[191]. - Ms. Long has been a director of Tapestry Inc. since January 2016, providing independent judgment and serving on the audit committee[188]. - Mr. Jiang was appointed as an independent non-executive director on September 24, 2021, bringing approximately 25 years of experience in international relations and public affairs[194]. - Ms. Tang was appointed as an independent non-executive director on September 24, 2021, with around 14 years of experience in accounting and management[197]. - Ms. Tang has been a professor at Donghua University since January 2022, focusing on accounting research and education[197]. - Mr. Jiang holds a master's degree in international politics and a doctoral degree in political theory from Fudan University[200]. - Ms. Tang obtained a doctoral degree in accounting from Shanghai Jiao Tong University in December 2009[198]. - Ms. Tang has been recognized as a Chinese Certified Public Accountant since December 2009[198]. - Ms. Tang was awarded the Shanghai Pujiang Talent in August 2016 and selected as a "National Accounting Leading Talent" in December 2017[199]. - Ms. Tang has served as an independent non-executive director of Shanghai No.1 Pharmacy Co., Ltd. since June 2022[197]. - Mr. Jiang has previously held independent director positions at Shenzhen BGI Genomics Co., Ltd. and Suzhou EDL Technology Co., Ltd.[194]. - Mr. Jiang's experience includes being a visiting scholar at Yale University and Columbia University[194]. Market and Operational Insights - The accumulated duration of short drama series for the year was approximately 6,000 minutes, representing a year-on-year increase of approximately 5 times[38]. - The first cinema film "The Unseen Sister" ranked TOP3 in box office performance among domestic suspense-themed films in 2024[39]. - The revenue from the commercial short drama series segment doubled year-on-year[38]. - The Group's overseas drama series achieved significant viewership growth, with some breaking local broadcasting records for Chinese dramas[78]. - The Group did not incur any material foreign currency exchange losses for the year ended December 31, 2024, and will continue to monitor foreign exchange exposure[139]. - As of December 31, 2024, the group had no significant investments and utilized idle funds to subscribe to financial products[152]. - As of December 31, 2024, there were no assets registered as collateral[153]. - As of December 31, 2024, the group faced no significant contingent liabilities[154]. - As of December 31, 2024, there were no future plans for significant investments or capital assets[155].

在近期的香港国际影展上，柠萌影视对外介绍了公司的八部新剧：古装剧集《子夜归》《书卷一梦》《月明千里》《一念江南》，现代言情剧《轧戏》 《今天是太阳雨》《没有人像你》，由番茄小说热门IP改编的《十日终焉》。 但一年前柠萌影视在片单中提及的《三十而已2》《问心2》以及"小系列"第五部《小三居》等，多部柠萌影视在现实题材领域代表性IP的续集，却并未出 现在此次柠萌新剧发布会上。 在这背后，是2024年柠萌影视营业收入由上年同期的12.22亿元锐减至6.57亿元，净利润从2.14亿元下滑到亏损1.84亿元的低迷经营状况。视频平台集体进 入降本增效常态化阶段后，版权剧利润空间持续被压缩，这对主要依赖版权剧创收的柠萌影视所产生的影响，已经清晰反映在了财报中。 | | 截至12月31日止年度 | | | --- | --- | --- | | | 2024年 | 2023年 | | | 人民幣千元 人民幣千元 | | | 除税前(虧損)/利潤 | (213,417) | 285.498 | | 所得税抵免/(開支) | 23,364 | (71,870) | | 年內(虧損)／利潤及全面(開支)／收入總額 | (190,0 ...

出品：新浪财经上市公司研究院 2022年8月，柠萌影视在港交所主板首发上市，成功登陆资本市场，摩根士丹利、中金公司担任联席全球协调人、联席账簿管理人及联 席牵头经办人。 作者：君 3月25日晚，柠萌影视披露2024年度业绩公告，交出上市以来最差成绩单。财务数据显示，公司2024年实现营业收入6.57亿元，上年同 期为12.22亿元，同比近乎腰斩；录得净亏损1.89亿元，上年同期为盈利2.14亿元，同比由盈转亏，降幅高达188.54%。 业绩"变脸"背后，柠萌影视长剧精品化战略受挫，2024年仅3部新剧播出，剧集数远低于行业头部公司；同时，公司重磅加码短剧赛 道，"爆款之年"规模增长但盈利未现，成为利润黑洞。 上市3年，柠萌影视已累计亏损7亿，股价紧跟着跌跌不休，市值较历史高点蒸发九成，逾百亿元。 长剧口碑崩盘 营收腰斩 公司官网显示，柠萌影视是一家基于深厚的版权IP储备，专注创作优质剧集的中国顶级内容生产公司。自2014年于上海成立以来，致力 于进行剧集的投资、制作、发行、宣传、衍生授权等全产业链运营。 | | 截至12月31日止年度 | | | --- | --- | --- | | | 2024年 | 2 ...

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 657,008,000, a decrease of 46.2% compared to RMB 1,221,752,000 in 2023[3] - Gross profit for 2024 was RMB 108,523,000, resulting in a gross margin of 16.5%, down from 39.4% in 2023[3] - The adjusted net loss for 2024 was RMB 184,113,000, compared to an adjusted net profit of RMB 227,421,000 in 2023[4] - The company's total revenue for the year ended December 31, 2024, was RMB 657.0 million, a decrease of 46.2% compared to RMB 1,221.8 million for the year ended December 31, 2023[24] - The gross profit for the year ended December 31, 2024, was RMB 108.5 million, a decline from RMB 481.6 million in the previous year[26] - The gross margin for the year ended December 31, 2024, was 16.5%, down from 39.4% in the previous year[27] - Other income and gains decreased by 43.7% to RMB 68.5 million for the year ended December 31, 2024, compared to RMB 121.7 million in the previous year[28] - Selling and distribution expenses increased by 70.7% to RMB 158.7 million for the year ended December 31, 2024, from RMB 93.0 million in the previous year[29] - The company's net asset value decreased to RMB 2,313,850,000 in 2024 from RMB 2,574,543,000 in 2023, representing a decline of 10.1%[68] - The group reported a pre-tax loss of RMB 189,144,000 for 2024, compared to a profit of RMB 213,628,000 in 2023[93] Operational Highlights - The company produced approximately 6,000 minutes of short dramas in 2024, representing a year-on-year increase of about 500%[17] - The first theatrical film, "The Heart of Qiao Yan," grossed over RMB 150 million at the box office in mainland China, ranking as the top 3 domestic suspense films in 2024[10] - The overseas self-operated YouTube channel saw a 120% increase in views, reaching over 100 million, with subscriptions up by 180% and total watch time up by 205%[19] - The company successfully launched three copyright dramas and one theatrical film in 2024, with "Hunting Crime 2" achieving top viewership on multiple platforms[6] - The company’s business short dramas doubled in revenue compared to the previous year, with significant viewer engagement and commercial conversion rates[17] - The company’s overseas content production and distribution expanded significantly, breaking viewership records for Chinese dramas in several countries[19] Cash Flow and Assets - The net cash outflow from operating activities for the year ended December 31, 2024, was RMB 251.0 million, compared to a net inflow of RMB 359.6 million for the year ended December 31, 2023, reflecting increased production and development costs[42] - The net cash inflow from investment activities for the year ended December 31, 2024, was RMB 659.7 million, a significant improvement from a net outflow of RMB 296.9 million in the previous year, mainly due to the maturity of financial products[43] - The net cash outflow from financing activities decreased to RMB 38.6 million for the year ended December 31, 2024, from RMB 89.3 million in 2023, a reduction of 56.8% due to bank loans for production[44] - The cash and cash equivalents increased to RMB 1,086.3 million as of December 31, 2024, from RMB 716.2 million at the beginning of the year, representing a 51.7% increase[41] - The company's debt-to-asset ratio was 28.1% as of December 31, 2024, showing no significant change from 27.8% in the previous year[45] Employee and Governance - The number of employees as of December 31, 2024, was 203, with approximately 70.9% being female, reflecting a commitment to gender diversity[22][23] - The audit committee has reviewed the financial reporting processes and internal controls, ensuring compliance with applicable standards[62] - The company will continue to review and monitor its corporate governance practices to ensure adherence to the corporate governance code[59] Future Outlook - The company aims to produce over 200 episodes of long-form content by 2025, focusing on both original and adapted works[21] - The expected revenue to be recognized within one year from remaining performance obligations is RMB 568,529,000, compared to RMB 555,658,000 in 2023[87] - The total amount of remaining performance obligations is RMB 2,475,227,000, an increase of 29.8% from RMB 1,907,602,000 in 2023[87] Dividends and Investments - The board of directors did not recommend any final dividend for the year ended December 31, 2024[54] - The group did not declare a dividend for the year ending December 31, 2024, while a dividend of RMB 21.8 cents per share was declared for 2023[91] - The company has no significant investments or future capital asset plans as of December 31, 2024[49] - The company has no hedging activities as of December 31, 2024[50]

LINMON 檸萌影視傳媒有限公司 Linmon Media Limited (於開曼群島註冊成立的有限公司) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code : 9857 2024 中期報告 INTERIM REPORT LINMON Contents 目錄 未經審核中期簡明綜合損益 及其他全面收益表 2 Corporate Profile 公司簡介 3 Corporate Information 公司資料 7 Financial Highlights 財務摘要 8 Management Discussion and Analysis 管理層討論及分析 20 Corporate Governance and Other Information 企業管治及其他資料 37 Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 38 Unaudited Interim ...

Investment Rating - The report maintains a "Buy" rating for the company [1][8]. Core Insights - The company's performance is under short-term pressure due to platform scheduling, with a significant year-over-year revenue decline of 54.4% in 2024H1, resulting in revenue of 193 million yuan and an adjusted net loss of 49.41 million yuan [4][6]. - Despite the short-term challenges, the company is focusing on developing high-quality series and has seen rapid growth in its overseas business, with overseas revenue reaching 13.36 million yuan, a year-over-year increase of 92.5% [3][4]. - The company is actively expanding its short drama production capabilities, both domestically and internationally, with over 2000 minutes of short dramas launched in 2024H1 [4][6]. Summary by Sections Performance Overview - In 2024H1, the company aired one 36-episode series compared to one 38-episode series in 2023H1, impacting revenue recognition [4]. - The gross margin for 2024H1 was 22.4%, a decrease of 27.3 percentage points year-over-year, while the adjusted net margin was -25.7% [4][6]. Business Development - The company has launched new projects, including three new licensed drama projects, and has a strong pipeline with several projects completed or in production [3][4]. - The company has signed business cooperation agreements exceeding 60 million yuan in 2024H1, with multiple brand contracts exceeding 10 million yuan [4]. Financial Projections - Revenue projections for 2024-2026 are estimated at 911.8 million yuan, 1.482 billion yuan, and 1.961 billion yuan, respectively, with corresponding net profits of 126.15 million yuan, 216.86 million yuan, and 274.14 million yuan [7][8]. - The report anticipates a recovery in revenue growth starting in 2025, with a projected growth rate of 62.54% for that year [7].

Financial Performance - For the six months ended June 30, 2024, the company's revenue was RMB 192,529,000, a decrease of 54.4% compared to RMB 422,142,000 in the same period of 2023[1] - The company reported a gross profit of RMB 43,037,000, down 79.5% from RMB 209,885,000 year-on-year[1] - The adjusted net loss for the period was RMB 49,412,000, compared to an adjusted net profit of RMB 138,981,000 in the same period last year[2] - The company's net loss for the six months ended June 30, 2024, was RMB 52.9 million, compared to a net profit of RMB 131.0 million for the same period in 2023[22] - The gross margin for the six months ended June 30, 2024, was 22.4%, a decline of 27.3% from 49.7% for the same period in 2023[15] - The company reported a loss before tax of RMB 46,598,000, compared to a profit of RMB 167,045,000 in the prior year[40] - The net loss attributable to equity holders of the parent was RMB 52,572,000, compared to a profit of RMB 130,952,000 in the same period last year[40] - Basic loss per share for the six months ended June 30, 2024, was RMB (0.146), compared to earnings per share of RMB 0.363 for the same period in 2023[54] Revenue Sources - The company achieved overseas distribution revenue exceeding RMB 13 million, nearly doubling year-on-year[7] - The short drama business saw a revenue increase of approximately 380% year-on-year, with the short drama "Save My Family" accumulating over 330 million views[6] - Revenue from customers in mainland China was RMB 179,168,000, while revenue from other countries/regions was RMB 13,361,000 for the six months ended June 30, 2024[49] - Customer contract revenue for the six months ended June 30, 2024, was RMB 192,529,000, a decrease of 54.4% compared to RMB 422,142,000 for the same period in 2023[50] Project Development - The company launched three new projects and completed two projects in the first half of 2024, with the series "You Also Have Today" achieving high viewership on multiple platforms[4] - The company has a rich reserve of projects in development, with several series already pre-sold[4] - The company is actively developing localized content in Thailand and Hong Kong, including the Thai version of "Hunting Crime" and the production of "Thirty Only: Bangkok Edition"[7] Financial Position - Trade receivables and notes receivable decreased by 56.2% to RMB 261.5 million as of June 30, 2024, from RMB 597.3 million as of December 31, 2023[26] - As of June 30, 2024, the net current assets were RMB 2,610.8 million, slightly down from RMB 2,732.8 million as of December 31, 2023, while the current ratio increased from 6.13 to 7.14[28] - The total equity attributable to owners decreased from RMB 2,574.5 million as of December 31, 2023, to RMB 2,446.8 million as of June 30, 2024, primarily due to dividend distribution and operational losses in the first half of 2024[28] - The debt-to-asset ratio remained stable at 27.8% as of June 30, 2024, consistent with December 31, 2023[29] - The company's net assets attributable to equity holders decreased to RMB 2,448,515,000 from RMB 2,574,543,000, a decline of 4.9%[42] Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions, except for the separation of the roles of Chairman and CEO[34] - The company will continue to review its corporate governance structure to ensure compliance with the governance code[35] - All directors confirmed compliance with the standard code of conduct for securities transactions during the six months ending June 30, 2024[36] Dividends and Shareholder Returns - The board decided not to declare an interim dividend for the six months ending June 30, 2024[33] - The company declared a cash dividend of RMB 0.218 per share for the fiscal year ending December 31, 2023, totaling RMB 78,580,000, approved at the annual general meeting on June 20, 2024, and scheduled for payment on July 19, 2024[56] - The company did not declare or pay any interim dividends for the six months ending June 30, 2024, consistent with the same period in 2023[56] Employee and Operational Metrics - As of June 30, 2024, the company had 205 employees, with approximately 72.2% being female, reflecting a commitment to gender diversity[11] - The company has only one reportable operating segment, indicating a streamlined operational focus[48]

Investment Rating - The report gives a "Buy" rating for Lemon Media with a target price of HKD 4.71 [2] Core Views - Lemon Media is a leading producer of high-quality TV series, with a strong track record of producing top-tier content since its establishment in 2014 [2] - The company has diversified revenue streams, including licensing, content marketing, and IP derivatives, with 21 out of 23 series produced being copyright series [2] - Lemon Media is expanding its production capacity for high-quality series and is actively developing short-form content as a second growth curve [2] - The company has a strong presence in overseas markets, with 70%+ of its 2024 series planned for international distribution [2] Long-Form Series - Lemon Media has produced 23 long-form series by 1H24, with 21 being copyright series, and has maintained a stable output of 3-4 series annually over the past five years [2] - The company aims to increase its annual production from 200 episodes to 200 series over the next three years, focusing on high-quality content [2] - In 1H24, the company faced a net loss of RMB 50-55 million due to delayed series releases, but it expects to release 120 episodes in 2024, including "Half-Cooked Men and Women," "Midnight Return," and "Hunting Crime 2" in 2H24 [2] - Overseas revenue grew by 89.1% in 2023, driven by successful international releases like "A Journey to Love," and the company plans to continue expanding its overseas distribution [2] Short-Form Series - Lemon Media is focusing on short-form content as a second growth curve, leveraging its expertise in long-form series and partnerships with platforms and brands [2] - In 2023, the company saw a 12.4x increase in short-form revenue, driven by hits like "Twenty-Nine," and expects further growth in 2024 [2] - The company is positioning itself to produce high-quality short-form content, which is expected to be more profitable compared to short-form series reliant on advertising [2] Financial Projections - The report forecasts Lemon Media's net profit for 2024-2026 to be RMB 170 million, RMB 240 million, and RMB 300 million, respectively, with a PE ratio of 8.2x, 5.9x, and 4.6x [2] - Revenue is expected to grow from RMB 1.5 billion in 2024 to RMB 2.3 billion in 2026, driven by both long-form and short-form content [4] - The company's overseas and short-form businesses are expected to maintain high growth rates, contributing significantly to overall revenue [2] Industry Analysis - The long-form series industry is in a period of stock competition, with platforms focusing on cost control and high-quality content [24] - The short-form series market has seen explosive growth, with the market size increasing from RMB 940 million in 2020 to RMB 37.39 billion in 2023, but growth is expected to slow as the market matures [41] - Regulatory normalization and the trend towards high-quality content are expected to drive the short-form series market towards more premium productions [44]

Financial Performance - In 2023, the company achieved a revenue of RMB 1.22 billion, representing a year-on-year increase of 28.4%, with adjusted net profit reaching RMB 227 million, up 60.4% year-on-year[10]. - The Group's total revenue for 2023 reached RMB 1,221.8 million, a 28.4% increase from RMB 951.5 million in 2022[128]. - Adjusted net profit for the year was RMB 227.4 million, compared to RMB 141.8 million in the previous year, reflecting strong operational performance[165]. - Gross profit for the year ended December 31, 2023, was approximately RMB 481.6 million, reflecting a 28.8% increase from RMB 374.0 million for the same period in 2022[32]. - The Group's gross profit rose by 28.8% from RMB 374.0 million in 2022 to RMB 481.6 million in 2023, with a gross profit margin slightly increasing from 39.3% to 39.4%[182]. - Selling and distribution expenses decreased by 11.9% from RMB 105.6 million in 2022 to RMB 93.0 million in 2023, primarily due to a reduction in the number of drama series broadcast[184]. - Administrative expenses decreased by 26.6% from RMB 280.9 million in 2022 to RMB 206.2 million in 2023, mainly due to lower listing expenses and share-based payment expenses[184]. - Finance costs decreased by 41.5% from RMB 4.1 million in 2022 to RMB 2.4 million in 2023, primarily due to reduced expenses on discounted notes[184]. Revenue Breakdown - Revenue from long-form drama series amounted to RMB 1.17 billion, reflecting a year-on-year growth of 24.3%[13]. - Revenue from short drama series reached RMB 32.23 million, marking a significant increase of 1,240% year-on-year[17]. - The Group's revenue from short drama series surged by 1,241.7%, from RMB 2.4 million in 2022 to RMB 32.2 million in 2023[154]. - Revenue from overseas business of RMB 38.814 million, an increase of 89.1% year-on-year[5]. - Revenue from overseas markets increased by RMB 18.3 million, or 89.08%, compared to the previous year, aligning with the Group's overseas expansion strategy[170]. - Revenue from other businesses increased by 237.8% from RMB 4.5 million in 2022 to RMB 15.2 million in 2023, mainly due to growth in the artiste management business[177]. Content Production and Quality - The company produced and broadcast three original drama series in 2023, achieving high ratings, with "The Heart" scoring 8.5 on Douban[14]. - By the end of 2023, the Group produced and distributed a total of 22 high-quality drama series, with 20 being original series where the Group acted as the lead investor and executive producer[68]. - The Group successfully produced and aired three high-quality original dramas in 2023, achieving new highs in drama quality[99]. - The original drama series "A Journey to Love" achieved a popularity score of over 10,000 within 6 days of broadcasting, ranking TOP1 on iQIYI on its first day[84]. - The short drama series "Twenty Nine" achieved over 1.45 billion views on Douyin, ranking TOP1 for four consecutive weeks[18]. - The Group's short drama series segment established an industry-leading position, contributing significantly to revenue growth alongside the artiste management business[80]. Overseas Expansion - The company established an overseas business platform, "Linmon International," focusing on overseas distribution and localized content production[22]. - The Group's overseas distribution of content has expanded to over 190 countries and regions, with significant success in platforms like Netflix and iQIYI[113]. - The Group aims to maintain rapid growth in overseas distribution and push forward the overseas remake of its own IPs, while also developing original content for international markets[76]. - The first-round single-episode price for "A Journey to Love" broke the record for overseas distribution of Linmon's ancient costume dramas, with over 10 million views on its YouTube channel[62]. - The Group's overseas distribution revenue increased by 89.1% year-on-year, achieving a significant milestone in global content release[136]. Technological Advancements - The company is actively exploring AI technology applications in content production, enhancing its operational efficiency[10]. - The implementation of AI technologies has brought new opportunities and challenges to the industry, enhancing the Group's content creation capabilities[42]. - The Group plans to explore the application of new technologies such as AI in its production processes and deepen its strategic brand client expansion in content marketing[76]. - The Group plans to explore AI and new technologies in production processes to enhance efficiency and innovation in 2024[122]. Strategic Initiatives - The Group's diversified growth strategies include content marketing, short drama series, and IP derivative development, reinforcing its leadership in the industry[53]. - The Group reconstructed its content categories into five major segments for 2024, focusing on connecting new audiences with super content[85]. - The Group's exploration of IP derivatives includes developments in musicals, audiobooks, and games, enhancing revenue streams[143]. - The Group's strategic brand resource development has led to annual frame cooperation with multiple strategic brand customers, enhancing its marketing services[116]. Employee and Corporate Structure - The Group's employee composition includes approximately 71.7% female employees, reflecting a commitment to workforce diversity[126]. - As of December 31, 2023, the Group employed 180 staff members, with a diverse workforce comprising approximately 71.7% female employees[149][151].

2024 年 4 月 1 日 公司研究 评级：买入(首次覆盖) 【国海证券投资评级标准】 行业投资评级 推荐：行业基本面向好，行业指数领先沪深 300 指数； 中性：行业基本面稳定，行业指数跟随沪深 300 指数； 回避：行业基本面向淡，行业指数落后沪深 300 指数。 股票投资评级 买入：相对沪深 300 指数涨幅 20%以上； 增持：相对沪深 300 指数涨幅介于 10%～20%之间； 中性：相对沪深 300 指数涨幅介于-10%～10%之间； 卖出：相对沪深 300 指数跌幅 10%以上。 【免责声明】 本报告的风险等级定级为 R4，仅供符合国海证券股份有限公司（简称"本公司"）投资者适当性管理要求的客 户（简称"客户"）使用。本公司不会因接收人收到本报告而视其为客户。客户及/或投资者应当认识到有关本 报告的短信提示、电话推荐等只是研究观点的简要沟通，需以本公司的完整报告为准，本公司接受客户的后续 问询。 本公司具有中国证监会许可的证券投资咨询业务资格。本报告中的信息均来源于公开资料及合法获得的相关内 部外部报告资料，本公司对这些信息的准确性及完整性不作任何保证，不保证其中的信息已做最新变更，也不 保证 ...