G.H.Y Culture & Media Holding Co (XJB) H1 2023 earnings summary

Executive summary

• 6M2023 revenue rose 58.4% YoY to S$32.677m; gross profit increased 110% to S$10.567m as markets normalised with the PRC reopening.

• Reported net loss was S$1.891m; excluding a S$3.4m net FX loss, mainly from SGD appreciation against RMB, net profit would have been S$1.5m.

Financial highlights

• Revenue rose from S$20.6m to S$32.677m; gross profit increased from S$5.020m to S$10.567m.

• Loss before tax was S$1.940m versus S$1.951m; net loss was S$1.891m versus S$1.785m in 6M2022.

• Other income fell 68% to S$1.842m, including grants that declined S$4.3m to S$0.8m; other expenses rose 31% to S$4.1m and finance costs rose 103% to S$1.3m.

Outlook and guidance

• Turnaround and profitability were targeted for FY2023; a stronger long-drama pipeline was expected for FY2023 and FY2024, subject to unforeseen circumstances.

• Strange Tales of Tang Dynasty 2: To the West filming was expected to finish in Q3 2023; Contenders filming was due to start in Q4, with Nanyang Transport Volunteers pre-production beginning in Q3.

• Close to 100 performances of The Ferryman and Strange Tales of Tang Dynasty musicals were expected across the PRC in 2023 and 2024.

• H2 2023 concert investment plans included Jay Chou's Carnival World shows in four PRC cities, including Taiyuan and Hohhot.

• Long-term priorities included revenue growth, margin improvement and positive annual free cash flow, with cash focused on reinvestment and growth, selective acquisitions, then dividends or buybacks.