China Ruyi FY2025 Q4 Earnings Release

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responsibility for the contents of this announcement, make no representation as to its accuracy or
completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in
reliance upon the whole or any part of the contents of this announcement.
China Ruyi Holdings Limited
中國儒意控股有限公司
(a company incorporated in Bermuda with limited liability)
(Stock Code: 136)
ANNUAL RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
FINANCIAL HIGHLIGHTS
20252024
RMB’000RMB’000
Revenue3,342,9753,670,760
Net profit/(loss)1,786,023(206,576)
Adjusted net profit
(Note) 1,962,6361,064,982
Adjustednetprofitmargin59%29%
Basic earning/(loss) per shareRMB0.11419RMB(0.01570)
Diluted earning/(loss) per shareRMB0.11419RMB(0.01570)
Note: We define adjusted net profit as net profit/(loss) for the year net of (i) share-based
compensation expenses; (ii) fair value change in contingent consideration payable; (iii)
imputed interest expenses; and (iv) interests expenses on convertible bonds.
The board (the‘‘Board’’) of directors (the‘‘Directors’’) of China Ruyi Holdings
Limited (the‘‘Company’’) announces the consolidated results of the Company and its
subsidiaries and controlled entities (together the‘‘Group’’)fortheyearended31
December 2025 (the‘‘Reporting Period’’).
–1–

MANAGEMENT DISCUSSION AND ANALYSIS
Financial Performance Summary
The Group recorded a profit attributable to owners of the Company of approximately
RMB1,797 million for the year ended 31 December 2025, which increased by
approximately RMB1,988 millionascomparedtothelossattributable to owners of the
Company of approximately RMB191 million for the year ended 31 December 2024.
The increase in the profit attributable toowners of the Company was mainly due to the
increase in contribution from the gaming business and optimization of cost efficiency.
The basic and diluted earnings per share were RMB0.11419 and RMB0.11419 for the
year ended 31 December 2025, respectively, as compared to the basic and diluted loss
per share of RMB0.01570 and RMB0.01570 for the year ended 31 December 2024,
respectively.
For the year ended 31 December 2025, the Group’s revenue decreased from RMB3,671
million for the year ended 31 December 2024 to RMB3,343 million for the year ended
31 December 2025, including revenue from film and television drama production,
online streaming and gaming businesses of RMB3,303 million, and revenue from other
business segment of RMB40 million.
For the year ended 31 December 2025, the adjusted net profit of the Group was
RMB1,962.6 million, while the adjusted net profit for the year ended 31 December
2024 was RMB1,065.0 million, representing an increase of 84%.
Business Review and Outlook
In 2025, the Group continued to advance its strategic portfolio optimization and
business structure upgrades. By expanding industrial boundaries through investment
and mergers and acquisitions, it has built a synergistically linked business ecosystem,
forming a three-pillar driven business structure of‘‘games providing stable cash flow,
content driving performance elasticity, and AI enhancing efficiency’’, contributing to a
significant improvement in profitability.
For the year ended 31 December 2025, the Group’s annual revenue was RMB3.343
billion, and was adjusted compared to the same period last year due to industry cycles
and content scheduling rhythms. During the Reporting Period, the Group achieved a
net profit of RMB1.786 billion, representing a significant increase compared to the
same period last year. The profit growthwas mainly attributable to the increased
contribution from the gaming business andcost efficiency optimization, driving an
improvement in the profit structure,which further strengthened the Group’s
endogenous profitability and resilience against economic cycles.
–2–

I. Content production business: Premium content matrix continues to
consolidate market leadership position,diverse project pipeline supports long-
term development
1.Film investment, production and distribution: Centered on High-quality
content
In 2025, the domestic film market witnessed several landmark developments.
According to data from the China FilmAdministration, the national box
office for 2025 reached RMB51.832 billion, representing a year-on-year
increase of 21.95%, and cinema attendance reached 1.238 billion, representing
a year-on-year increase of 22.57%, indicating a significant recovery in
industry prosperity.
Against this backdrop, the Group continued to strengthen its core
competitiveness in film production anddistribution, and launched several
market-influential works during key seasons, further consolidating its leading
position in content creation and market operations. During the Reporting
Period, multiple films co-produced bythe Group delivered outstanding
performances. The suspense crime film‘‘Octopus with Broken Arms’’( 《誤殺
3》) and the romantic comedy‘‘Honey Money Phony’’( 《騙騙喜歡你》) ranked
first and third in the New Year’s Day box office, respectively. During the
Spring Festival period, the national-level suspense comedy‘‘Detective
Chinatown 1900’’( 《唐探1900》) ranked second in the box office with over
RMB3.6 billion and was awarded‘‘2025 Weibo Night‧Film of the Year’’
(2025微博之夜‧微博年度電影); the family animation‘‘Boonie Bears: Future
Reborn’’( 《熊出沒‧重啟未來》) also achieved remarkable box office results.
During the summer season, the war-themed film
‘‘Dead to Rights’’( 《南京照
相館》) topped the box office with over RMB3billion; the oriental fantasy
adaptation‘‘Curious Tales of a Temple’’( 《聊齋：蘭若寺》)wontheBest
Animation Film Award at the 10th Golden Crane Awards—2025 China Film
Week held at Tokyo; the historical suspense adaptation‘‘The Lychee Road’’
( 《長安的荔枝》)wonthe‘‘Top Ten Golden Angel Awards’’at the 21st China-
American Film Festival and received multiple nominations such as the Golden
Rooster Award; and genre-diverse films such as the social suspense film
‘‘Malice’’( 《惡意》) and the romantic film‘‘Gift from a Cloud’’( 《有朵雲像
你》) also performed steadily. During the National Day period, the war epic
‘‘The Volunteers: Peace at Last’’( 《志願軍：浴血和平》) successfully claimed
the top spot. This diverse premium content matrix fully validated the Group’s
strong content control and market insight capabilities.
–3–

For the 2026 Spring Festival period, the national comedy film‘‘Pegasus 3’’
( 《飛馳人生3》) securely topped the box office with a cumulative total
exceeding RMB4 billion; the suspense thriller‘‘Scare Out’’( 《驚蟄無聲》)
secured the second place in the box office; the family animated film‘‘Boonie
Bears: The Hidden Protector’’( 《熊出沒‧年年有熊》) continued its stable
market performance, maintaining its lead in the family-oriented content
segment.
Looking ahead, the Group has formed a content investment structure of‘‘head
projects driving + multi-project diversification’’, effectively diversifying risks
while enhancing single-project returns. The rich project pipeline also lays a
solid foundation for the Group’s sustainable development, with major works
such as‘‘Cold War 1994’’( 《寒戰1994》),‘‘The Wild Tales’’( 《蠻荒禁地》),
‘‘Once Upon A Time in the Middle East’’( 《歡迎來龍餐館》),‘‘Zhuan Nian
Hua Kai’’( 《轉念花開》),
‘‘THE WANDERING EARTH III (Part 1 & 2)’’
( 《流浪地球3 （上、下）》),‘‘MAD KING’’( 《狠家伙》), as well as animated
film series co-produced with Light Chaser Animation, progressing steadily.
The Group consistently adheres to high-quality content as its core, exploring
the contemporary value of Chinese culture, and is committed to telling
Chinese stories to global audiences, demonstrating cultural confidence and
industry responsibility.
2.Investment, production and distribution of television dramas: continuously
increasing investment in top-tier premium content
In the drama production segment, the Group continues to increase its
investment in top-tier premium content, deepen collaborations with
mainstream domestic streaming platforms, and actively expand overseas
markets, continuously enhancing the international reach and brand influence
of Chinese dramas. During the Reporting Period, the martial arts romance
drama‘‘Shadow Love’’( 《與晉長安》), starred by Song Yi and Cheng Lei, was
shortlisted for the Golden AngelAward at the 21st China-American
Television Festival.
In terms of project pipeline, the drama series produced and led by the Group
span a wide range of genres and enjoy a vibrant landscape, comprehensively
covering multiple genressuch as suspense, realism, Chinese costume drama,
martial arts, and urban romance. The suspense genre includes‘‘Light to the
Night’’( 《黑夜告白》) starred by Pan Yueming and Wang Hedi; the crime-
themed drama‘‘Her Brilliant Journey’’( 《一路燦爛》)starredbyYanNiand
Ren Suxi. Reality-based dramas include‘‘Prosecutor and Boy’’( 《檢察官與
少
年》) starred by Zhang Xiaofei and Yu Jiacheng, focusing on juvenile legal
education; and‘‘Jia You Qi Lang’’( 《家有七郎》) starred by Chen Baoguo,
Jing Boran, and Gao Yuanyuan. Period and martial arts dramas include‘‘All
–4–

Hail my Supreme Sec’’( 《萬古最強宗》) starred by Peng Yuchang and Wan
Peng; and the new-school martial arts drama‘‘Now or Never’’( 《一點浩然
氣》). Urban romance dramas include‘‘Dazzling’’( 《耀眼》)starredbyGuan
Xiaotong and Li Yunrui, and the romantic comedy‘‘Touch’’( 《非正式浪漫》)
starred by Cai Wenjing. These pipeline films represent an expansion across
multiple narrative genres, with in-depth collaborations already established
with various platforms,and are expected to be launched successively,
providing continuous content output and revenue contribution for the Group.
II. Online streaming business: AI technology fully empowers content ecosystem,
leading the intelligent transformation of streaming business
1.AI empowers streaming business: A comprehensive leap from auxiliary tool
to core engine
The Group continues to deeply optimize its AI technology deployment across
the entire industrial chain of its streaming business, successfully achieving a
strategic leap from‘‘AI-assisted creation’’to an‘‘AI-native content
ecosystem’’. Facing the explosive growth of the global AIGC film and
television market, the Group not only significantly enhance content
production efficiency but also buildsolid core barriers in commercial
monetization and digital asset operations leveraging cutting-edge multimodal
large models and digital asset rights confirmation technologies.
2.AI-native content ecosystem: Building a core barrier for high quality and
high commercial value
The Group has deeply integrated AI technology into the innovation ecosystem
of its streaming business, constructinga highly differentiated and scalable
content intelligent supply system to continuously drive the reshaping of
industrial value. The AIGC content creation system of the AI lab has
completed a comprehensive upgrade from short-form content to serialized and
long-form content. Itsbenchmark works such as‘‘Sour Soul’’(
《酸魂》)and
‘‘Prologue to the White Snake’’( 《白蛇序章》) have achieved tens of millions
of cumulative views across the internet, successfully validating the closed-
loop path from creation to commercial monetization for AIGC content.
Leveraging continuously iterating AI video generation technology, the Group
has established an industrialized production process capable of mass-
producing high-quality AI animation series and micro-dramas at scale. Facing
the projected industry opportunity of the domestic AI animation series market
exceeding RMB24 billion, the Group has strategically leveraged cutting-edge
technologies and mature industrial capabilities to pioneer this emerging
sector, shortening content development cycles by over 60% while achieving
–5–

significant cost optimization in production. Through the continuous delivery
of intelligently generated content that integrates cultural depth and
commercial appeal, the Group has solidified its position as an innovator in
the streaming sector, and simultaneously driven user growth and enhanced
commercial value, injecting robust momentum for long-term development.
3.Multimodal AI middleware architecture: Connecting the entire workflow for
streaming content creation
The Group has comprehensively upgraded its proprietary systems-‘‘Linggou
AI’’,‘‘Jingce AI’’,‘‘Changyu AI’’,and‘‘Shuyan AI’’-into a multimodal AI
middleware architecture. Leveragingcutting-edge multimodal large model
technology, this architecture streamlines the entire content production
workflow, from concept generation to final delivery, fundamentally reshaping
the paradigm of film and television industrial production.
System Name Core Technology Upgrade Core Functions and
Commercial Value
Linggou AI Introduction of narrative agents
driven by large language modelsAs an intelligent creation engine,
relying on massive literary copyright
resources and historical project data, it
transforms fragmented creative
inspirations into a complete narrative
structure, and realizes quantitative
evaluation of script logic and
prediction of commercial potential.
Jingce AI Integration of the latest image-
to-video and text-to-video large
modelsFocusing on the director’s preparation
phase, it automatically generates high-
precision work drafts and dynamic
storyboards, achieving physically
realistic simulation of lighting effects
and lens language, which greatly
reduces the cost of early trial and
error.
–6–

System Name Core Technology Upgrade Core Functions and
Commercial Value
Changyu AI Introduction of real-time neural
rendering and 3DGS technologyIt realizes real-time image quality
inspection and high-fidelity rough-cut
preview during the shooting process,
breaks through the computing power
bottleneck of traditional virtual
production, and significantly improves
shooting efficiency and reduces
rework rate.
Shuyan AI Upgraded to full lifecycle
management of AI digital actorsCentered on post-production and asset
application, it generates compliant
digital actors with high emotional
expressiveness, ensures rights security
through blockchain-based evidence,
and simultaneously lowers the risks
and costs associated with high-risk
scene shooting.
4.AI digital asset full-chain platform: Solidifying the core value of digital
assets
The Group has fully transitioned from the‘‘traditional tools + AI’’stage into
a new phase of‘‘native AI-driven’’. Its self-developed digital human system
has been upgraded to an AI digital asset full-chain platform. This platform
deeply integrates cutting-edgetechnologies such as 3DGS and NeRF,
enabling the rapid generation of cinema-grade precision 3D digital characters
and scenes. Combined with blockchain technology, it achieves one-click
binding, rights confirmation, and continuous feedback optimization for digital
roles, and ensures the uniqueness and security of digital assets, enabling the
Group to strategically dominate in future virtual idol operations and IP
licensing commercialization.
5.Strategic outlook: Leading the intelligent transformation of streaming
business
The large-scale application of AItechnology significantly reduces unit
content production costs while increasing content supply frequency, creating
a sustainable profit growth leverage. Moving forward, the Group will drive
the upgrade of AI from a production tool to the core engine of the industry.
Driven by the dual forces of‘‘AI + IP’’, it aims to build a globally leading
–7–

intelligent content ecosystem. Through the continuous deepening of
technological applications and the expansion of commercialization pathways,
the Group will achieve a comprehensive intelligent transformation of its
streaming business, establishing differentiated advantages in global
competition.
III. Jingxiu Games: Premium R&D and operations drive performance growth,
global IP self-development and technological innovation empower long-term
value
Upholding its core strategy of premium quality, globalization, and integrated R&D
and operations, the Group has built a closed-loop system for self-developing and
self-publishing globally renowned IPs. Leveraging in-house R&D strength, full-
cycle refined operations, and global IP integration capabilities, it has achieved
growth in both business scaleand operational efficiency.
1.Sustained operation of core products, continuous value release of classic
IPs, new products and innovativegameplay unlock new growth space
The Group has established a mature sustained operation system covering the
entire product lifecycle. Through continuous version updates, refined user
operations, and content innovation, it has driven core products to consistently
rank at the forefront of the industry. Among them, the benchmark SLG
product‘‘Red Alert Online’’( 《紅警OL》), leveraging the influence of its
classic IP and a deep operational strategy, has long remained in the top tier of
the domestic iOS game bestseller list. As of August 2025, the product’s
cumulative gross revenue exceeded RMB6 billion, setting a milestone for
long-term operation in the domestic SLG category, fully validating the
Group’s core barriers in classic IP adaptation and sustained operations.
Products such as‘‘Ragnarok Origin’’( 《仙境傳說：愛如初見》)and
‘‘Civilization: Eras & Allies’’( 《世界啟元》) have also maintained stable user
bases and revenue contributions.
During the Reporting Period, the Groupfocused on breakthrough innovations
in the core SLG segment, precisely targeting niche genres such as sci-fi and
Three Kingdoms, and launched several differentiated premium new games.
The sci-fi themed new product‘‘TheNovaEra’’( 《群星紀元
》) innovatively
integrated RTS gameplay and synergized three top-tier sci-fi IPs-‘‘The South
Heaven Gate Project’’( 《南天門計劃》),‘‘Starship Troopers’’( 《星河戰隊》),
and‘‘Swallowed Star’’( 《吞噬星空》), achieving a dual breakthrough in
content and user base, becoming a benchmark in the sci-fi SLG segment.
‘‘The War of Dragon Stones’’( 《龍石戰爭》) pioneered the‘‘Dragon Stone-
like’’strategic gameplay, earning high recognition from core strategy players;
the Three Kingdoms themed new product‘‘Yanwu’’( 《偃武》), leveraging
–8–

historically grounded narratives and youth-oriented art design, topped the iOS
free charts shortly after launch, successfully reaching a broad user base across
all age groups, further expanding the Group’s user boundaries and market
space.
2.Self-search and self-development closed loop for global top-tier IPs, full-
chain autonomous control establishes core barriers
The Group is firmly advancing its strategy of collaborating with globally
recognized top-tier IPs, achieving full-chain autonomous control from IP
acquisition, R&D, publishing to operations, building a scarce and high-quality
IP resource barrier and product pipeline, providing a solid guarantee for
performance growth over the next 3–5 years. During the Reporting Period, the
Group’s collaboration with renowned global game developer Ubisoft,‘‘Heroes
of Might & Magic: Lordship Rivalry’’( 《魔法門英雄無敵：領主爭霸》), is
expected to officiallylaunch in 2026; a comprehensive top-tier IP self-
development collaboration was reached with Electronic Arts (EA), covering
the EA SPORTS FC football IP and the classic‘‘Command & Conquer’’( 《命
令與征服》) series SLG products, expected to launch globally in early 2027.
Through this self-search and self-development closed-loop model for IPs, the
Group maximizes IP value and gainsfull control over operations.
In terms of its global market presence, the Group has established deep
collaborations with leading regional partners. In Korea, the Group has reached
a collaboration intent with Devsister for the‘‘CookieRun’’IP, with the
agency product‘‘CookieRun: Tower of Adventures’’( 《餅乾人聯盟》)
expected to be released in 2026;the Group is also engaged in R&D
collaboration with SmileGate on the‘‘CrossFire’’IP. In the North American
market, the Group has reached collaboration consensus with leading mobile
game developer Scopely on multiple premium products, with both parties
leveraging their respective strengthsto drive product launch and promotion.
Furthermore, the Group is precisely positioning itself in the sports game
segment, constructing a dual-core product matrix of‘‘EA SPORTS football IP
+ NBA basketball IP’’, fully integrating the user bases of sports competitions
and gaming. The full-platform product‘‘NBAGO’’( 《NBA瞬息》) is expected
to commence testing in 2026, forming a sports game portfolio covering both
football and basketball, creating a new performance growth pole for the
Group.
–9–

3.Independent R&D and implementation of core AI technologies, full-chain
cost reduction and efficiency enhancement to establish a technological moat
The Group has deeply integrated AI technology into its strategic framework
for the gaming business. By continuously increasing R&D investment, it
comprehensively promotes the innovativeapplication of artificial intelligence
across the entire chain of game R&D, production, and operations. Currently,
the in-house R&D team has achieved breakthroughs in two core technologies:
‘‘AI-driven intelligent analysis ofsports event tactical formations’’and
‘‘video-driven non-physical motion capture’’, significantly improving the
efficiency of action resource production and shortening development cycles.
Meanwhile, AI has been implemented at scale in areas such as voice
generation, post-production, and procedural content generation, propelling the
game industry into a new phase of intelligent production.
4.Precise positioning in local segment, strategic investment completes all-
genre ecosystem
The Group is improving its business ecosystem and creating new performance
growth curves through equity cooperation and strategic investments. In
January 2025, the Group acquired a 30%equity stake in Beijing Yonghang
Technology Company Limited, and initiated in-depth collaboration around the
‘‘QQ Dance’’( 《QQ炫舞》) IP by integrating core resources such as the virtual
idol‘‘Xing Tong’’(星瞳) to create innovative‘‘music-dance + social + short
drama’’integrated film-game products. To actively position itself in the open-
world action game segment, the Group made a strategic investment in
Chengdu Xiaozhiyouchuang Technology Co., Ltd., a team currently
developing related products basedon the UE5 engine. Following the
successful collaboration on‘‘Age of Stellarian’’( 《群星紀元》), the Group
strategically invested in its developer, Kaboom Technology, to jointly develop
the next-generation products for the global market.
IV. Strategic investment business: Focusing on core segment, deepening industrial
synergy and value realization
During the Reporting Period, the Group executed a series of strategic investments
to strengthen synergies among its business segments, and built a more resilient
ecosystem platform with significant growth potential to help core businesses
improve quality, enhance efficiency, and expand growth boundaries.
–10–

1.Investment in Wanda Film: Strengthening full-industry chain synergy,
consolidating offline scene advantages
In 2023, the Group strategically invested in Wanda Film, a leading domestic
cinema chain, achieving full-process integration from content creation and
production to terminal screening, which helps to enhance content distribution
efficiency and monetization capability. The Group deeply synergized its own
film, television, and gaming resources with Wanda Film’s nationwide theater
network, significantly improving the conversion efficiency of high-quality
content into commercial value. During the Reporting Period, the Group
engaged in in-depth collaboration with Wanda Film, launching innovative
‘‘movie watching + gaming’’offline linkage activities in Wanda Cinemas
across five major cities including Beijing and Chongqing, covering over 700
cinema locations nationwide, effectively achievinghigh-efficiency exposure
for new games and conversion of user reservations. Additionally, leveraging
the vast audience data and consumerbehaviour insights accumulated by
Wanda Film, the Group can precisely grasp market demand, dynamically
optimize film positioning and promotion strategies, thereby effectively
improving project investment returns and reducing market risks.
2.Investment in 52TOYS: Expanding IP derivative business, extending the
value chain
To deepen the exploration of IP values, the Group strategically invested in
52TOYS Development Co., Ltd., whose well-known brand 52TOYS possesses
abundant IP resources. On one hand, the Group can share in the capital
appreciation benefits brought by the brand development and market expansion
of 52TOYS; on the other hand, leveraging the Group’s strengths in film and
television IP content and 52TOYS’capabilities in product design,
development, and channels. Both parties engage in deep synergy to drive the
commercialization innovation of film and television IPs, create competitive
hit derivative products, expand revenue sources, and significantly enhance IP
monetization capabilities and overall profitability.
A deep linkage was successfully carried out between 52TOYS’original sci-fi
IP‘‘Beast Box’’(猛獸匣)and‘‘The War of Dragon Stones’’( 《龍石戰爭》), a
game product under the Group’s Jingxiu Games. Through the launch of an
exclusive game version and offline pop-up events, this initiative achieved
dual-line operation of‘‘virtual content + physical products’’. This activity not
only explored a new path for the integration of‘‘toy IP + game’’but also
achieved mutual growth in users and traffic.
–11–

3.Acquisition of partial equity in Kuaiqian: Deepening the‘‘culture +
technology + finance’’strategic portfolio
During the Reporting Period, the Group acquired a 40% equity stake in
Kuaiqian Financial Services (Shanghai) Co., Ltd. (‘‘Kuaiqian’’), aiming to
enhance the strategic controllability of the financial payment link within the
Group’s closed-loop ecosystem, thereby improving the Group’s platform-
based operational capability and industrial synergy effects. Kuaiqian holds a
nationally issued third-party payment license and has a deep presence in
comprehensive payment solutions for large and medium-sized enterprises,
digital RMB applications, and cross-border payments.
This acquisition brings multiple benefits. It is expected to improve the
payment settlement efficiency and user experience for the Group’s internal
businesses such as film, streaming media, games, and cinemas, and optimize
the fund flow. Leveraging Kuaiqian’s expertise in cross-border payments and
other areas, it can provide efficient fintech support for the global distribution
and operations of the Group’s content products. Both parties will explore
innovative business models combining‘‘cultural content + scenario-based
payment’’, so as to further expand business boundaries.
4.Strategic investment in AISphere Technology: Positioning in the‘‘AI
+Content’’segment, empowering business intelligent upgrade
To seize the strategic opportunity in‘‘AI+Content’’, in early 2026, the Group
has made a strategic investment in AIsphere Limited (“AIsphere”), a global
leader in AI video, and has entered into a strategic partnership with its
onshore operating entity, Beijing AIsphere Technology Co., Ltd.* (北京愛詩
科技有限公司)(“AIsphere Technology”), constructing a bidirectional
empowerment system of‘‘technology + industry’’. The core product of
AISphere Technology,‘‘PixVerse’’, has over 100 million users globally, and
its self-developed technology holds a leading edge in AI video generation,
with extensive experience in implementing AI solutions for film, television,
and short dramas. This investment is animportant initiative for the Group to
implement its‘‘Content + Technology’’
development strategy. Both parties
will promote the collaboration on multiple dimensions. At the strategic level,
thecoreteamofAISphereTechnology will assist the Group’s intelligent
transformation. At the technical application level, the focus will be on deep
application of AI in areas such as film and television special effects,
promotion and distribution, and game scene optimization, enhancing
efficiency and content quality. Atthe innovation and expansion level,
leveraging the Group’s rich IP resources combined with AI technology for
secondary creation, the two parties willjointly develop multimodal agents,
and exploring next-generation interactive content formats. In the future, the
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Group will continue to drive the deepintegration of AI technology with its
core businesses, use technological innovation to drive industrial upgrades, and
create a benchmark for the integrated development of‘‘AI+Content’’,thereby
consolidating a foundation for long-term sustainable development.
ADJUSTED NET PROFIT
To supplement our consolidated financial statements which are presented in accordance
with HKFRS Accounting Standards (‘‘HKFRS’’), we also use adjusted net profit as
additional financial measures, which are not required by, or presented in accordance
with HKFRS. We believe that these non-HKFRS measures, which have excluded
certain items, facilitate comparisons of operating performance from period to period
and company to company by eliminatingpotential impacts of items that our
management does not consider to be indicative of our operating performance. We
believe that these measures provide useful information to investors and others in
understanding and evaluating our consolidated results of operations in the same manner
as they help our management. However, our presentation of the adjusted net profit may
not be comparable to similarly titled measures presented by other companies. The use
of these non-HKFRS measures has limitations as an analytical tool, and you should not
consider them in isolation from, or as substitute for analysis of, our results of
operations or financial condition as reported under HKFRS. The following tables
reconcile our adjusted net profit for the years presented to the most directly
comparable financial measure calculated and presented in accordance with HKFRS:
Year ended 31 December
20252024
RMB’000RMB’000
Reconciliation of net profit/(loss) to
adjusted net profit:
Net profit/(loss) for the period1,786,023(206,576)
Add:
Share-based compensation expenses50,31767,272
Interests expenses on convertible bonds87,239—
Imputed interest expenses39,05782,839
Fair value change in contingent consideration payable—1,121,447
Adjusted net profit 1,962,6361,064,982
–13–

LIQUIDITY, CAPITAL RESOURCES, BORROWINGS AND GEARING RATIO
The Group maintains a prudent treasury policy. The Group primarily financed its
operations through shareholder’s equity and cash generated from operations. During the
year ended 31 December 2025, the liquidity ofthe Group was closely monitored by the
Board and the Group reviews its working capital and finance requirements on a regular
basis.
Liquidity
As at 31 December 2025, the Group maintained the balance of cash and cash
equivalents and term deposits of approximately RMB7,243.8 million (as at 31
December 2024: approximately RMB3,493.6million). The increase in the balance of
cash and cash equivalents and term deposits was mainly due to receipt of financing
proceeds and growth in operating performance.
Borrowings and Gearing Ratio
The Group maintained a sound financial position, and its borrowing demand was not
seasonal. As at 31 December 2025, the Group had borrowings of RMB733.0 million
(as at 31 December 2024: approximately RMB1,700.9 million). Borrowings at fixed
rates accounted for 39.6%. Such borrowings will be due within 19 months.
As at 31 December 2025, the Group’s net equity amounted to approximately
RMB23,868.9 million (as at 31 December2024: approximately RMB16,345.2 million)
with total assets amounting to approximately RMB30,260.3 million (as at 31 December
2024: approximately RMB21,670.7 million). Net current assets were approximately
RMB13,429.1 million (as at 31 December2024: approximately RMB6,660.4 million)
and the current ratio was 4.3 times (as at 31 December 2024: 2.5 times). Gearing ratio
calculated on the basis of the Group’s total debts (interest-bearing borrowings, lease
liabilities and convertible bonds) over shareholders’funds was 9.5% (as at 31
December 2024: 2.0%).
Charge of Assets
During the year ended 31 December 2025, the Group did not have any charges of
assets (as at 31 December 2024: nil).
Commitment
As at 31 December 2025, the Group had no capital commitment (as at 31 December
2024: nil).
–14–

Contingent Liabilities
The Company and the Group did not provide corporate guarantee to its subsidiaries or
other parties and did not have other significant contingent liabilities as at 31 December
2025 (as at 31 December 2024: nil).
CURRENCY RISK MANAGEMENT
The Group had significant amount of assetsand liabilities denominated in Renminbi
(‘‘RMB’’) as at 31 December 2025. The content production and online streaming and
online gaming businesses are mainly carried out in RMB in Mainland China.
Therefore, the Group is exposed to the risk of significant fluctuation in RMB
exchange rates. During the year ended 31 December 2025, the Group closely
monitored the fluctuation and does not expect any material fluctuation of exchange
rates in the near future, but will continue to monitor it.
SHARE-BASED PAYMENTS
2013 Share Option Scheme
The Company’s former share option scheme (the‘‘2013 Share Option Scheme’’)
adopted pursuant to a resolution passed bythe shareholders on 31 October 2013 was
terminated by a resolution passed in the annual general meeting of the Company held
on 28 June 2023 (the‘‘2023 AGM’’). The purpose of the 2013 Share Option Scheme
was to provide incentives to eligible participants.
No further options shall be granted under the 2013 Share Option Scheme upon
termination but in all other respects, the provision of the 2013 Share Option Scheme
shall remain in force to the extent necessarytogiveeffecttotheexerciseofany
options granted prior thereto or otherwise as may be required in accordance with the
provisions of the 2013 Share Option Scheme and the options granted prior to the
termination shall continue to be valid andexercisable in accordance with 2013 Share
Option Scheme.
On 26 November 2021, the Company granted181,917,000 share options pursuant to
the 2013 Share Option Scheme and no further share options were granted pursuant to
the 2013 Share Option Scheme up to the termination of the 2013 Share Option
Scheme. For the year ended 31 December 2025, no share option granted under the
2013 Share Option Scheme had been lapsed or cancelled. As at 31 December 2025, a
total of 181,228,000 share options granted under the 2013 Share Option Scheme have
not been exercised.
–15–

2023 Share Option Scheme
The Company adopted the current share option scheme (the‘‘2023 Share Option
Scheme’’) pursuant to a resolution passed bythe shareholders in the 2023 AGM. The
purpose of the 2023 Share Option Scheme is to provide incentives to eligible
participants. Since the adoption of the 2023 Share Option Scheme and up to the date of
this announcement, the Company has not granted any share option under the 2023
Share Option Scheme or adopted any other share scheme. As at 31 December 2025,
there were no outstanding options under the 2023 Share Option Scheme.
NUMBER OF EMPLOYEES AND REMUNERATION POLICY
As at 31 December 2025, the Group employed approximately 684 employees. The
remuneration policy of the Group is to reward its employees with reference to their
qualifications, experience and work performance as well as to market benchmarks.
Employee benefits include medical insurance coverage and mandatory provident fund,
etc. Total staff costs for the year ended 31 December 2025, including directors’
emoluments, amounted to approximatelyRMB338.0 million (for the year ended 31
December 2024: RMB269.6 million).
MATERIAL ACQUISITION AND DISPOSAL
On 13 January 2025, (i) Beijing Ruyijingxiu Network Technology Co., Ltd.* (‘‘Beijing
Jingxiu’’,北京儒意景秀網絡科技有限公司) and Virtual Cinema Entertainment
Limited (‘‘Virtual Cinema’’) (as purchasers) (collectively, the‘‘Beijing Yonghang
Purchasers’’); (ii) Tencent Digital (Shenzhen) Company Limited* (騰訊數碼(深圳)有
限公司), Tencent Mobility Limited (‘‘Tencent Hong Kong’’), Guangxi Tencent
Venture Capital Co., Ltd.* (廣西騰訊創業投資有限公司) and Tibet Yonghang
Enterprise Management Partnership (Limited Partnership)* (西藏永航企業管理合夥企
業
(有限合夥)) (as vendors) (collectively, the‘‘Beijing Yonghang Vendors’’); (iii)
Beijing Yonghang Technology Company Limited (‘‘Beijing Yonghang’’); and (iv) the
Company (as the guarantor of the Beijing Yonghang Purchasers) entered into an equity
transfer agreement (the‘‘Beijing Yonghang Equity Transfer Agreement’’), pursuant
to which the Beijing Yonghang Vendors hadconditionally agreed to sell, and the
Beijing Yonghang Purchasers had conditionally agreed to acquire a total of 30% equity
interest in Beijing Yonghang at a total consideration of RMB825 million, including (i)
RMB742.5 million in cash, and (ii) 36,666,667 new shares (the‘‘Consideration
Shares’’) to be allotted and issued by the Company to Tencent Hong Kong or its
designated parties at the price ofHK$2.432 per Consideration Share.
Beijing Jingxiu is a controlled structured entity in which the Company has 100%
beneficial interest, and Virtual Cinema is an indirect wholly-owned subsidiary of the
Company. Each of the Beijing Yonghang Vendors is a wholly-owned subsidiary of
–16–

Tencent Holdings. The core assets of Beijing Yonghang encompass‘‘QQ Dance’’《(QQ
炫舞》),‘‘QQ Dance II’’《(QQ炫舞2》),‘‘QQ Dance Mobile’’《(QQ炫舞手遊》), and
other games.
On 10 April 2025, the Consideration Shares were allotted and issued to Tencent Hong
Kong pursuant to the specific mandate sought from the shareholders of the Company
other than Water Lily Investment Limited, Mr. Yang Ming and their respective
associates at the special general meeting of the Company convened on 26 March 2025.
For further details of the acquisition of30% equity interest inBeijing Yonghang and
issue of Consideration Shares under specific mandate, please refer to the announcement
of the Company dated 13 January 2025, the circular of the Company dated 7 March
2025 and the next day disclosure return of the Company dated 10 April 2025.
Save as disclosed above, during the yearended 31 December 2025, there was no other
material acquisition and disposal by the Company or any of its subsidiaries.
SIGNIFICANT INVESTMENTS
Save as disclosed in the section headed‘‘MATERIAL ACQUISITION AND
DISPOSAL’’, the Group did not have any significant investments (including any
investment in an investee company withavalueof5%ormoreoftheGroup’stotal
assets as of 31 December 2025) for the year ended 31 December 2025, and there was
no plan authorised by the Board for other material investments or additions of capital
assets as at the date of this announcement.
–17–

FINANCIAL INFORMATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
20252024
NotesRMB’000RMB’000
Revenue33,342,9753,670,760
Cost of revenue4(2,159,234)(1,760,345)
Gross profit 1,183,7411,910,415
Selling and marketing costs4(363,980)(161,738)
Administrative expenses4(302,859)(328,608)
Net impairment losses on financial assets2.1(a)(155,483)(144,525)
Other income515,00711,693
Other gain/(loss)—net61,281,717(1,222,041)
Operating profit 1,658,14365,196
Finance cost(141,965)(103,574)
Finance income214,925110,244
Finance income—net772,9606,670
Share of profit/(loss) of associates
accounted for using the equity method201,249(215)
Profit before income tax 1,932,35271,651
Income tax expenses8(146,329)(278,227)
Profit/(Loss) for the year, net of tax 1,786,023(206,576)
Other comprehensive loss
Items that may be reclassified to profit or
loss:
Changes at fair value through other
comprehensive income/(loss)10(7)
Currency translation difference242,57848,056
Items that will not be reclassified to profit
or loss:
Currency translation difference(410,893)(73,247)
Other comprehensive losses for the year,
net of tax (168,305)(25,198)
Total comprehensive income/(loss) for
the year 1,617,718(231,774)
–18–

20252024
NotesRMB’000RMB’000
Profit/(loss) attributable to:
—Equity holders of the Company1,796,636(190,533)
—Non-controlling interests(10,613)(16,043)
1,786,023(206,576)
Total comprehensive income/(loss)
attributable to:
—Equity holders of the Company1,628,331(215,731)
—Non-controlling interests(10,613)(16,043)
1,617,718(231,774)
Earning/(loss) per share for profit/(loss)
attributable to the equity holders of the
Company for the years: (expressed in
RMB cents per share)
—Basic earning/(loss) per share911.42(1.57)
—Diluted earning/(loss) per share911.42(1.57)
–19–

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 December
202531 December
2024
NotesRMB’000RMB’000
ASSETS
Non-current assets
Property, plant and equipment80,35092,177
Right-of-use assets56,46763,613
Goodwill4,443,6654,443,665
Film and television programmes rights101,353,1741,939,333
Other intangible assets743,097715,570
Deferred tax assets95,91740,424
Investments accounted for using equity
method1,712,14333,799
Financial assets at fairvalue through profit
or loss134,277,9993,117,420
Financial assets at fairvalue through other
comprehensive income513516
Prepayments and other non-financial assets40,384195,773
Deposits115,4576,106
12,809,16610,648,396
Current assets
Film and television programmes rights102,251,0051,809,113
Inventories3,0392,874
Prepayments and other non-financial assets440,939276,891
Other receivables and deposits111,398,2231,611,573
Trade and bills receivables122,517,9842,956,914
Financial assets at fairvalue through profit
or loss133,596,181871,310
Term deposits957,718—
Cash and cash equivalents6,286,0663,493,642
17,451,15511,022,317
Total assets 30,260,32121,670,713
EQUITY
Equity attributable to equity holders of
the Company
Share capital14318,541273,444
Share premium14
22,673,72917,069,660
Other reserves127,66349,736
Retain earnings/(accumulated losses)749,011(1,047,625)
23,868,94416,345,215
Non-controlling interests(23,221)(12,608)
Total equity 23,845,72316,332,607
–20–

31 December
202531 December
2024
NotesRMB’000RMB’000
LIABILITIES
Non-current liabilities
Borrowings69,398479,821
Lease liabilities27,62837,311
Deferred tax liabilities436,668459,022
Contingent consideration payable17,000—
Convertible bonds161,841,893—
2,392,587976,154
Current liabilities
Contract liabilities18,56318,232
Borrowings663,5631,221,043
Trade payables15530,859835,888
Film and television programmes investment
funds from investors673,136743,375
Other payables and accruals1,460,522832,924
Current income tax liabilities571,217682,124
Lease liabilities23,52228,366
Convertible bonds1680,629—
4,022,0114,361,952
Total liabilities 6,414,5985,338,106
Total equity and liabilities 30,260,32121,670,713
–21–

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 BASIS OF PREPARATION
The consolidated financial statements of the Group have been prepared in accordance with all
applicable HKFRS Accounting Standards and disclosure requirements of the Hong Kong
Companies Ordinance (‘‘HKCO’’) Cap. 622. The consolidated financial statements have been
prepared under the historical cost convention, as modified by the revaluation of financial assets at
fair value through other comprehensive income, financial assets at fair value through profit or loss,
and contingent consideration payable which are stated at fair value.
The preparation of financial statements in conformity with HKFRS Accounting Standards requires
the use of certain critical accounting estimates. It also requires management to exercise its
judgement in the process of applying the Group’s accounting policies.
(a) New and amended standards adopted by the Group
The Group has applied the following standards and amendments for the first time for its
annual reporting period commencing 1 January 2025:
Amendments to HKAS 21
and HKFRS 1Lack of Exchangeability (amendments)
The adoption of the above amended standard did not have any significant impact on the
Group’s accounting policies and did not require retrospective adjustments.
(b) Amendments to existing standards and interpretations have been issued but are not
effective for the financial year beginning on 1 January 2025 and have not been early
adopted by the Group.
Effective for annual periods
beginning on or after
HKFRS 9 and
HKFRS 7Amendments to the Classification and
Measurement of Financial
Instruments (amendments)1 January 2026
HKFRS 1,
HKFRS 7,
HKFRS 9,
HKFRS 10
and HKAS 7Annual Improvements to HKFRS
Accounting Standards—Volume 111 January 2026
HKFRS 9 and
HKFRS 7Contracts Referencing Nature-
dependent Electricity (amendments)1 January 2026
HKFRS 18 Presentation and Disclosure in
Financial Statements (new standard)1 January 2027
HKFRS 19 Subsidiaries without Public
Accountability: Disclosures
(new standard)1 January 2027
–22–

Effective for annual periods
beginning on or after
HK Int 5 Classification by the Borrower of
a Term Loan that Contains
a Repayment on Demand Clause
(amendments)1 January 2027
HKFRS 10 and
HKAS 28Sale or Contribution of Assets between
an Investor and its Associate or
Joint VentureTo be determined
The Group has already commenced an assessment of the impact of these new or revised
standards, interpretation andamendments. According to the preliminary assessment made by
the directors, no significant impact on the financial performance and position of the Group is
expected when they become effective. Except that certain pervasive changes in the
presentation and disclosure may be restated upon the adoption of HKFRS 18.
HKFRS 18 Presentation and Disclosure in Financial Statements (effective for annual
periods beginning on or after 1 January 2027)
HKFRS 18 will replace HKAS 1 Presentation of financial statements, introducing new
requirements that will help to achieve comparability of the financial performance of similar
entities and provide more relevant information and transparency to users. Even though
HKFRS 18 will not impact the recognition or measurement of items in the financial
statements, its impacts on presentation and disclosure are expected to be pervasive, in
particular those related to the statement of financial performance and providing management-
defined performance measures within the financial statements. The Group does not expect
theretobeasignificantchangeintheinformation because the requirement to disclose
material information remains unchanged; however, the way in which the information is
grouped might change as a result of the aggregation/disaggregation principles.
–23–

2 FINANCIAL RISK MANAGEMENT
2.1 Financial risk factors
(a)Credit risk
The Group is exposed to credit risk in relation to its financial assets at FVOCI, trade
and other receivables, term deposits and cash and cash equivalents.
The carrying amounts of financial asset at FVOCI, trade and other receivables, term
deposits and cash and cash equivalents represent the Group’s maximum exposure to
credit risk in relation to financial assets.
(i)Risk management
As at 31 December 2025 and 2024, the Group’s maximum exposure to credit risk
which will cause a financial loss to the Group due to failure to discharge an
obligation by the counterparties is arising from the carrying amount of the
respective recognised financial assets as stated in the consolidated statement of
financial position.
As at 31 December 2025 and 2024, 63%and 56% of the total trade and bills
receivables were due from the Group’s five largest customers. The directors of the
Company consider these counterparties with good credit worthiness based on their
past repayment history. The directors closely monitor the subsequent settlement of
the customers. The Group does not grant long credit period to the counterparties.
In order to minimise the credit risk, management of the Group has delegated a
team responsible for determination of credit limits, credit approvals and other
monitoring procedures to ensure that follow-up action is taken to recover overdue
debts. In addition, the Group reviews the recoverable amount of each individual
trade and bills receivables at the end of the reporting period to ensure that
adequate impairment losses are made for irrecoverable amounts.
Substantially all of the Group’s bank deposits are deposited with major financial
institutions incorporated in the Chinese Mainland and Hong Kong, which
management believes are of high credit quality without significant credit risk.
(ii)Impairment of financial assets
The Group has the following types of financial asset that is subject to the
expected credit loss models:
.Cash and cash equivalents
.Term deposits
.Financial assets at FVOCI
.Bills receivables
–24–

.Trade receivables
.Deposits and other receivables
While cash and cash equivalents, term deposits, bills receivables and financial
assets at FVOCI were also subject to theimpairment requirements of HKFRS 9,
the identified impairment loss was immaterial.
Trade receivables
The Group applies the HKFRS 9 simplified approach to measure expected credit
losses which uses a lifetime expected lossallowance for all trade receivables. The
Group measures the expected credit losses on a combination of both individual
and collective basis.
To measure the expected credit losses, trade receivables have been grouped based
on shared credit risk characteristics.
Measurement of expected credit loss on individual basis
Trade receivables with known insolvencies are assessed individually for
impairment allowances and are written off when there is no reasonable
expectation of recovery. Indicators that there is no reasonable expectation of
recovery include, amongst others, the failure of a debtor to engage in a
prepayment plan with the Group, and a failure to make contractual payments. As
at 31 December 2025, the balance of loss allowance in respect of these
individually assessed receivables was approximately RMB62,616,000 (as at 31
December 2024: RMB62,616,000).
Measurement of expected credit loss on collective basis
Expected credit losses are also estimated by grouping the remaining receivables
basedonsharedcreditriskcharacteristics and collectively assessed for likelihood
of re