G.H.Y Culture & Media Holding Co (XJB) H1 2024 earnings summary

Executive summary

• 6M2024 revenue was S$26.980m, down 17% YoY; gross profit was S$5.238m and net loss was S$18.731m, including a S$16.098m one-time tournament cancellation loss.

• Excluding the cancellation loss, the period loss would have been S$2.6m; operating activities generated S$13.832m net cash.

• Cash and cash equivalents were S$47.098m and net working capital was S$87.9m at 30 June 2024.

Financial highlights

• Revenue was S$26.980m versus S$32.677m YoY; gross profit was S$5.238m versus S$10.567m, and loss before tax was S$19.130m versus S$1.940m.

• Net loss was S$18.731m versus S$1.891m; loss attributable to owners was S$18.637m versus S$1.735m.

• Gross profit margin declined to 19.4% from 32.3%; basic and diluted loss per share was 1.75 Singapore cents versus 0.16 cents.

• Operating cash flow was S$13.832m, investing cash outflow S$4.994m and financing cash outflow S$9.248m; cash ended at S$47.098m.

Outlook and guidance

• A stronger new-content pipeline is anticipated in H2 2024, barring unforeseen circumstances; long-drama production volume is expected to exceed FY2022 and FY2023 levels.

• “Contenders” and “Notes of DNA Appraiser” completed filming and are expected to broadcast in 4Q2024; filming for “Nanyang Transport Volunteers” is expected to begin in H1 2025.

• Initial talks are underway for a third season of “Strange Tales of Tang Dynasty”; concert production is pursuing co-production and co-investment opportunities across the PRC and Asia.

• Growth priorities include strengthening production capabilities, diversifying revenue and exploring IP monetization through advertising, e-commerce marketing, immersive games and augmented reality.

• Long-term priorities include revenue growth, improved operating margins and positive annual free cash flow; cash is prioritised for core reinvestment and growth, then selective acquisitions, dividends or buybacks.