Linmon Media (9857) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 31.3% YoY to RMB862.5m; net profit was RMB30.2m versus a RMB190.1m loss, while adjusted net profit reached RMB33.8m versus an adjusted loss of RMB184.2m.

• Growth was driven by original drama releases, short-form dramas, overseas expansion and IP derivatives, alongside lower selling and administrative expenses.

Financial highlights

• Revenue RMB862.5m, up 31.3% YoY; gross profit RMB229.6m, up 111.6%; profit before tax RMB33.9m versus a loss of RMB213.4m.

• Net profit RMB30.2m versus a loss of RMB190.1m; basic and diluted EPS RMB0.09 versus a loss of RMB0.52.

• Cost of sales rose 15.4% to RMB632.9m; selling and distribution expenses fell 36.4% to RMB100.9m and administrative expenses fell 37.9% to RMB133.3m.

• Adjusted net profit, adding back share-based payments, was RMB33.8m versus an adjusted net loss of RMB184.2m; adjusted basic EPS was RMB0.09 versus a loss of RMB0.51.

Outlook and guidance

• 2026 target: commence production and air more than 200 episodes of long dramas; continue premium, serial content and expand production capacity.

• Short-drama strategy shifts from scale growth to premium production; overseas plans emphasize global IP operations, localized production and niche-language mini/short dramas.

• AI integration across the business chain is intended to improve quality, reduce costs and enhance efficiency; IP derivatives will be developed to extend IP lifecycles.