Linmon Media (9857) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 108.5% YoY to RMB401.3m; net profit was RMB11.3m versus a RMB52.9m loss, and adjusted net profit was RMB14.4m versus a RMB49.4m adjusted loss.

• Growth was led by A Dream within a Dream, improved short-drama performance, overseas distribution and tighter budget and expense management.

Financial highlights

• Revenue increased to RMB401.3m from RMB192.5m; cost of sales rose to RMB300.3m from RMB149.5m. Gross profit reached RMB101.0m from RMB43.0m.

• Gross margin expanded 2.8 percentage points to 25.2%; profit before tax was RMB12.7m versus a RMB46.6m loss, and income tax expense fell to RMB1.5m from RMB6.3m.

• Profit attributable to ordinary shareholders was RMB10.8m; basic and diluted EPS were RMB0.03 versus losses of RMB0.15. Adjusted net profit adds back share-based payments of RMB3.1m in 2025 and RMB3.5m in 2024.

• Administrative expenses fell 24.6% to RMB74.7m; selling and distribution expenses were RMB34.0m versus RMB35.3m. Other income and gains fell to RMB28.2m from RMB46.5m; finance costs rose 56.7% to RMB2.3m.

• Net cash used in operating activities was RMB239.4m versus RMB131.8m; cash and cash equivalents were RMB810.3m at June-end versus RMB1,086.3m at year-end.

Outlook and guidance

• FY2025 target is to begin production on more than 200 episodes of long drama series, increase production capacity and advance the original-IP strategy; several projects are scheduled to start shooting in H2.

• H2 priorities include premium short-drama output and diversified monetization, faster overseas revenue growth, release of the first overseas-localized long drama, IP development and wider AI use in production.

• Thai- and Indonesian-language mini and short dramas were in production or filming; artiste brokerage development will continue.