Damai Entertainment FY2026 Revenue Climbs 20% to RMB 8.02 Billion; Net Profit Soars 94%

Bulletin Express05-27

Damai Entertainment Holdings Limited (Damai Entertainment) released its audited results for the year ended 31 March 2026.

Financial Performance • Revenue rose 20.00% year-on-year to RMB 8.02 billion, driven by robust IP merchandizing and drama series production. • Profit attributable to shareholders surged 94.00% to RMB 0.71 billion; basic EPS increased to RMB 2.38 cents from RMB 1.23 cents. • Operating profit expanded 13.80% to RMB 0.74 billion. • Adjusted EBITA softened 7.83% to RMB 0.75 billion due to a one-off RMB 0.16 billion impairment reversal in FY2025; stripping out that item, underlying adjusted EBITA rose roughly 15%. • Gross profit improved to RMB 2.77 billion, yet gross margin eased to 34.46% (FY2025: 36.98%) amid new-business investments.

Segment Highlights • Live Entertainment Content & Technology: Revenue gained 10.62% to RMB 2.28 billion, but segment profit slipped 3.60% to RMB 1.19 billion as the group invested to enlarge market share. • IP Merchandizing: Revenue jumped 60.13% to RMB 2.17 billion; segment profit advanced 11.60% to RMB 0.40 billion. Growth was tempered by one-off costs tied to shuttered non-core lines. • Film Content & Technology: Revenue dropped 19.68% to RMB 2.18 billion, yet segment profit rebounded to RMB 0.31 billion (FY2025: RMB 0.07 billion) after adopting a low-risk investment strategy. • Drama Series Production: Revenue more than doubled to RMB 1.40 billion; segment profit tripled to RMB 0.15 billion on a stronger content pipeline.

Cost & Expense Dynamics • Selling and marketing expenses decreased 5.56% to RMB 0.75 billion, reducing their share of revenue to 9% (FY2025: 12%). • Administrative expenses grew 21.37% to RMB 1.50 billion, reflecting headcount expansion and higher operating costs. • Net finance income rose 27.07% to RMB 0.25 billion, aided by higher deposit interest and foreign-exchange gains.

Balance Sheet & Liquidity • Cash, cash equivalents and short-term bank deposits totaled RMB 5.69 billion (31 Mar 2025: RMB 3.37 billion). • The group was in a net cash position with no borrowings outstanding (31 Mar 2025: RMB 0.40 billion). • Total assets reached RMB 25.88 billion, while total equity stood at RMB 17.08 billion. • Gearing ratio remained nil; no material contingent liabilities or asset charges were reported.

Capital Allocation & Shareholder Returns • No final dividend was declared for FY2026, consistent with the prior year. • The company reported no major acquisitions, disposals or share repurchases during the period.

Strategic Outlook Management will prioritize: 1) Accelerating overseas expansion, starting with Hong Kong and Macao and extending to wider Asian markets through the new “Maiseat” ticketing platform. 2) Scaling IP commercialization via Alifish, with emphasis on flagship IP additions, pop-toy channel cooperation and proprietary IP development. 3) Deepening content creation and upstream integration to enhance live-entertainment revenue while expanding user base and market share.

Damai Entertainment intends to fund forthcoming initiatives primarily from internal resources, with potential external financing considered if favourable conditions arise.

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