Star Plus Legend Holdings (6683) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose 21.1% YoY to RMB151.4m, led by IP creation and operation; profit was RMB16.4m, broadly flat YoY. Adjusted net profit rose 16.8% to RMB25.0m.

• The IP-empowerment model combines new retail sales with celebrity IP content and services that also promote products; livestream product GMV reached RMB121.8m in H1 2023.

Financial highlights

• Revenue was RMB151.388m vs RMB125.018m YoY; gross profit was RMB92.711m vs RMB74.287m, and operating profit was RMB22.734m vs RMB22.026m.

• Profit for the period was RMB16.430m vs RMB16.344m; owners’ profit was RMB13.027m vs RMB14.512m. Basic and diluted EPS remained RMB0.03.

• Gross margin increased to 61.2% from 59.4%; net profit margin declined to 10.9% from 13.1%.

• Adjusted net profit, excluding listing expenses and share-based compensation, was RMB25.0m vs RMB21.4m, up 16.8%; adjusted margin was 16.5% vs 17.1%.

• Selling and marketing expenses increased to RMB32.6m from RMB23.9m; G&A rose to RMB41.3m from RMB27.8m, including RMB7.9m in listing expenses.

Outlook and guidance

• Priorities include expanding product lines and distribution, increasing e-commerce livestream frequency, and developing celebrity IP content and licensing opportunities.

• J-Style Trip season two and Yue Lai Yue Kuai Le were expected to air in H2 2023; both were positioned to generate IP revenue and support product sales.

• Plans include developing metaverse-related IP content and exploring global expansion of both business segments.

• IPO proceeds were earmarked for product development, marketing, celebrity IP creation, event planning, IT upgrades and working capital, with use targeted by end-2025.