Star Plus Legend Holdings (6683) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 25.0% to RMB430.2m, while reported profit fell to RMB41.4m from RMB64.9m; adjusted net profit was RMB74.4m, down 3.6%.

• IP creation and operation drove growth, offset by higher listing and marketing costs; new retail revenue remained stable.

Financial highlights

• Revenue was RMB430.2m versus RMB344.2m; gross profit rose 24.0% to RMB276.3m.

• Operating profit declined to RMB64.5m from RMB92.0m; profit before tax was RMB66.9m versus RMB93.1m.

• Net profit was RMB41.4m versus RMB64.9m; adjusted net profit, excluding listing and share-based compensation expenses, was RMB74.4m versus RMB77.2m.

• Selling and marketing expenses increased 55.1% to RMB112.3m; G&A rose 66.3% to RMB106.6m, including RMB31.9m in listing expenses.

Outlook and guidance

• Planned 2024 initiatives include Migu Music video ringtones, the Yue Lai Yue Kuai Le show scheduled for H1, and concerts and virtual performances.

• Plans include expanding celebrity IP partnerships, launching Eric Suen’s solo tour, exploring pet products, and growing e-commerce livestreaming and short-video sales.

• Future new-retail growth priorities include upgrading existing products, diversifying offerings, and expanding online promotion and sales channels.