Star Plus Legend posts RMB51.05 million FY2025 loss as IP revenues halve; new-retail sales climb 17.20%

Star Plus Legend Holdings (STARPLUS LEGEND, 06683) reported a net loss of RMB51.05 million for the year ended 31 December 2025, reversing the prior year’s RMB50.24 million profit. The decline followed a sharp contraction in the group’s IP creation and operation income and a sizeable jump in impairment provisions.

Revenue fell 19.11% year on year to RMB472.38 million. The top line was dragged by a 50.33% plunge in IP creation and operation revenue to RMB156.06 million, reflecting softer demand for long-form video content, reduced brand-marketing budgets and a deliberate slowdown in new content launches. Conversely, the new-retail segment—primarily health-management and skincare products—rose 17.20% to RMB316.32 million, supported by new product roll-outs and wider distribution.

Gross profit dropped 43.90% to RMB183.45 million, while gross margin narrowed to 38.83% from 56.02%, pressured by a higher contribution from lower-margin traded products and the revenue mix shift.

Operating loss reached RMB67.89 million versus a RMB83.43 million profit in 2024. Expenses were broadly stable: selling and marketing fell 16.10% to RMB120.20 million, general and administrative costs edged down 1.25% to RMB112.59 million. However, impairment provisions on financial assets surged to RMB64.43 million (FY2024: RMB5.34 million), including RMB36.30 million on loans to associate Zhejiang Ruxing and RMB15.40 million on trade receivables tied to sponsorship fees.

Other gains, largely from fair-value increases in financial assets, rose to RMB43.82 million (FY2024: RMB6.27 million). Finance income exceeded finance costs, resulting in net finance income of RMB2.50 million.

Balance-sheet strength improved after two top-up subscriptions and a placing during the year: • Cash and cash equivalents rose to RMB437.22 million (31 December 2024: RMB296.54 million). • Total assets expanded 50.50% to RMB1.88 billion. • Equity climbed to RMB1.56 billion, pushing the current ratio to 5.12 (2024: 3.68). • Borrowings increased to RMB65.84 million, lifting the gearing ratio to 0.05, still modest.

No final dividend was declared.

Management outlined plans to: 1) prioritise IP consumption, notably CHOUCHOU, via new products such as blind boxes, figurines and cultural merchandise; 2) roll out at least 1,000 IP vending “robot shops” and launch flagship “celebrity IP collection stores”; 3) deepen cooperation with entertainment venues and invest in new IPs and technology-driven products, including quadruped companion robots.

Net proceeds from the 2024 placing and two 2025 top-up subscriptions totalled approximately HK$915.5 million, earmarked for concert and exhibition costs, IP development, product R&D, channel expansion and working capital.

Post-year-end, the board reported no material subsequent events.