China Ruyi Holdings (136) H2 2024 earnings summary

Executive summary

• Revenue grew slightly to RMB3,670.8 million for 2024, with significant improvement in gross profit and adjusted net profit margins year-over-year.

• Reported net loss of RMB206.6 million, mainly due to fair value loss on warrants, compared to a profit of RMB682.5 million in 2023.

• Adjusted net profit surged 120% to RMB1,251.4 million, reflecting strong underlying operational performance.

• Major business segments include content production, online streaming, and online gaming, each showing notable developments.

Financial highlights

• Revenue: RMB3,670.8 million, up from RMB3,627.2 million year-over-year.

• Gross profit: RMB1,910.4 million (margin 52%), up from RMB1,161.0 million (margin 32%) in 2023.

• Adjusted net profit: RMB1,251.4 million, up from RMB568.8 million; margin increased to 34.1% from 15.7%.

• Net loss: RMB206.6 million, compared to net profit of RMB682.5 million in 2023, due to non-cash fair value changes.

• Basic and diluted loss per share: RMB(0.0157), compared to earnings per share of RMB0.0655 and RMB0.0597 in 2023.

Outlook and guidance

• Plans to strengthen investment in high-quality film and drama content, expand international distribution, and leverage AI for content creation.

• Focus on integrating film, television, and gaming IPs, and expanding the global footprint of its entertainment ecosystem.

• Ongoing development of new games and content, with several high-profile projects in the pipeline for 2025.