Huanrui Century's net profit in the first half of the year increased by nearly 1.4 times, turning losses into profits, and said it would further explore investment in interactive drama production
2024-08-27
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Huanrui Century turned a profit in the first half of the year, and the interactive drama "It's Over, I'm Surrounded by Beauties 2" produced and co-invested by the company is currently in the process of revising and confirming the script.
On August 25, Huanrui Century United Co., Ltd. (Huanrui Century, 000892.SZ) released its 2024 semi-annual report, with revenue of approximately RMB 108 million in the first half of the year, up 12.64% year-on-year, mainly due to the increase in artist services during the reporting period; net profit attributable to shareholders of the listed company was RMB 16.04 million, up 136.96% year-on-year, turning losses into profits. Basic earnings per share was RMB 0.0165.
During the reporting period, Huanrui Century's operating income mainly came from artist brokerage and film and television drama related businesses. The company is also planning new strategic directions such as short dramas, interactive dramas, AIGC, and film and television technology. Huanrui Century's artist brokerage income was approximately 83.17 million yuan, a year-on-year increase of 96.90%; affected by the project cycle, film and television drama and derivative product income was 24.60 million yuan, a decrease of 35.51% over the same period last year.
The financial report shows that Huanrui Century has signed more than 20 artists and more than 10 new artists. In the first half of the year, the top four of the top five projects in Huanrui Century's revenue came from artists. Artist one brought in 37.61 million yuan, accounting for 34.89% of the total revenue, artist two brought in 31.68 million yuan, accounting for 29.38% of the total revenue, and artists three and four brought in less than 10 million yuan. The fifth project was the movie "Boonie Bears: Back to Earth", which brought Huanrui Century 802,300 yuan in revenue, accounting for 0.74% of the total revenue.
The financial report did not disclose the list of artists, but Huanrui Century’s official website showed that Huanrui Century’s contracted artists included Cheng Yi, Zhang Yuxi, Hou Mengyao, Zhang Rui and others.
As of the disclosure date of the report, Huanrui Century has the TV adaptation rights for more than 40 IPs, including "The Fate of Heaven", "The Perfect Couple", "The Heroic Minister", "Heavenly Fragrance", "The Exiled Immortal", "Ten States and Three Realms", and "The Star Catcher". Huanrui Century stated that the TV drama project "A Thousand Fragrances" starring Song Weilong and Ju Jingyi was completed in April 2024 and is now in the post-production stage. Another TV drama project "The Perfect Couple" is expected to start shooting in the third quarter of 2024; in addition, IPs such as "The Heroic Minister", "Heavenly Fragrance", "The Exiled Immortal", "Ten States and Three Realms", and "The Star Catcher" will also start production in subsequent years based on factors such as script creation and the progress of project preparations.
It is worth noting that Huanrui Century also disclosed in its financial report that the interactive drama "It's Over, I'm Surrounded by Beauties 2" produced and co-invested by Huanrui Century has completed the planning and filing of the online short drama and the preliminary preparation work. The script is currently being revised and confirmed. The company will determine the shooting time based on the progress of the project preparation. At the same time, the company is also developing and preparing other interactive drama projects in the "It's Over, I'm Surrounded by Beauties" series.
Huanrui Century stated that the company will further explore the production and investment of interactive dramas in the future.
It is worth noting that Huanrui Century announced the box office announcements of the movies "I Don't Want to Be Friends with You" and "Peacekeeping Riot Squad" in the first two months. Huanrui Century's investment proportion in the above two films is relatively low.
On June 21, Huanrui Century released an announcement on the box office of the movie "I Don't Want to Be Friends with You". The movie "I Don't Want to Be Friends with You", in which its wholly-owned subsidiary Huanrui Century (Dongyang) Film and Television Media Co., Ltd. participated in the investment, was released in mainland China on June 8. According to data from the National Film Fund Office, as of 24:00 on June 20, 2024, the cumulative box office revenue (including service fees) of the film has exceeded 168 million yuan (the final settlement data may have errors), and the company's income from the film is about 60,000 yuan (the final settlement data may have errors).
According to the announcement on May 6, the film "Peacekeeping Riot Squad", in which the wholly-owned subsidiary Huanrui Century (Dongyang) Film and Television Media Co., Ltd. participated in the investment, was released in mainland China for 5 days, and the cumulative box office revenue (including service fees) has exceeded 405 million yuan (the final settlement data may have errors), which is more than 50% of the company's audited consolidated financial statements for the most recent fiscal year. The company's income from the film is approximately 300,000 yuan (the final settlement data may have errors).
As of June 30, 2024, the total number of Huanrui Century shareholders was 373.92 million, a decrease of 5,046 households from the previous quarter (March 31), a decrease of 11.82%, marking two consecutive quarters of decline.
According to Dazhihui VIP, as of the closing, Huanrui Century rose 1.98% to 2.57 yuan per share, with a total market value of 2.521 billion yuan.
The Paper reporter Wu Yuxin
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