Linmon Media (9857) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 12.1% YoY to RMB422.1m; gross profit rose 11.0% to RMB209.9m and adjusted net profit increased 32.1% to RMB139.0m.

• Reported net profit was RMB131.0m versus a RMB65.2m loss in H1 2022; the prior period included a RMB138.3m preferred-share fair-value loss.

Financial highlights

• Cost of sales fell 27.1% to RMB212.3m, lifting gross profit to RMB209.9m.

• Adjusted net profit was RMB139.0m versus RMB105.2m; H1 2023 adjustments included RMB8.0m share-based payments.

• Operating cash flow was RMB162.8m versus RMB219.9m; cash and cash equivalents were RMB849.3m at 30 June 2023.

• Net assets increased 5.8% from 31 December 2022 to RMB2,529.3m at 30 June 2023.

Outlook and guidance

• Priorities included premium original dramas, expanded production capacity, stronger IP operations, budget management, and exploring ChatGPT and AIGC applications.

• Growth plans covered content marketing, overseas distribution and localized production, overseas IP commercialization, and micro-drama monetization.

• The Heart, A Journey to Love, In Between and My Boss were in post-production and pre-sold; no numerical financial guidance was stated.