YH Entertainment (2306) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 18.6% YoY to RMB907.0m; gross profit increased 43.0% to RMB223.2m and profit for the year rose 62.1% to RMB71.8m.

• Growth was led by artist management, with additional contributions from music IP, IP commercialization and the launch of pop toys operations.

• Adjusted net profit fell 18.4% to RMB81.6m, reflecting adjustments including lower equity-settled share-based payments and fair value movements.

Financial highlights

• Revenue RMB907.0m, up 18.6% YoY; cost of revenue RMB683.8m, up 12.4%.

• Gross profit RMB223.2m, up 43.0%; gross margin 24.6%, versus 20.4% in 2024.

• Operating profit RMB84.5m, up 54.6%; profit before tax RMB96.1m, up 36.7%; net profit RMB71.8m, up 62.1%.

• Basic and diluted EPS were both RMB0.08, versus RMB0.06 in 2024; no final dividend was recommended.

Outlook and guidance

• Strategy prioritizes competitiveness across core businesses, adapting to changing industry dynamics and business models, and expanding domestic and international reach.

• Artist management plans targeted trainee development and continued investment in artist operations, marketing and promotion.

• Music IP plans further releases for managed artists and expansion of its library through acquisition of quality music copyrights.

• Pop toys plans additional IP incubation, data-driven planning, disciplined launch and production cycles, and deeper domestic and international omnichannel reach.