YH Entertainment (2306) H1 2025 earnings summary

Executive summary

• H1 revenue rose 19.3% YoY to RMB414.2m; reported profit increased 108.1% to RMB61.1m, while adjusted net profit rose 3.2% to RMB60.9m.

• Artist management led revenue; IP commercialization expanded rapidly, while music IP margins improved and artist-management and IP-commercialization margins declined.

Financial highlights

• Revenue was RMB414.2m, up 19.3%; gross profit rose 22.8% to RMB109.4m and gross margin increased to 26.4% from 25.6%.

• Operating profit increased 87.2% to RMB65.9m; profit before tax rose 70.9% to RMB75.2m.

• Adjusted net profit, excluding share-based payments, fair-value changes and disposal items, rose 3.2% to RMB60.9m; adjusted margin was 14.7% versus 17.0%.

• Cost of revenue rose 18.0% to RMB304.8m; selling and marketing expenses rose 29.4% to RMB27.4m, while G&A expenses fell 31.0% to RMB30.7m.

Outlook and guidance

• Priorities include balanced, sustainable growth, stronger execution and collaboration, expanding domestic and international reach, and developing content and brand assets.

• The artist training center is expected to enter use in H2 2025; plans include expanding the trainee roster and strengthening artist promotion and operations.

• Plans include producing more music, acquiring quality music copyrights, and scaling IP commercialization through new formats and cross-sector collaborations.