Litian Pictures Announces 2020 Interim Results
Financial Highlights
The Interim results or the six months ended June 30, 2020:
– Revenue of the Group amounted to RMB256.7million, representing an increase of 29.7% as compared with the same period of last year;
– Gross profit amounted to RMB87.6 million, representing an increase of 27.7% as compared with the same period of last year;
– Profit attributable to equity shareholders of the Company amounted to RMB54.3 million, representing an increase of 18.9% as compared with the same period of last year;
– Basic and diluted earnings per share of the Group amounted to RMB0.24, representing an increase of 20.0% as compared with the same period of last year.
For the six months ended 30 June 2020, the Group’s revenue amounted to RMB256.7million, representing an increase of 29.7% as compared with the same period of last year. The increase was mainly due to an increase of RMB126.0 million in revenue from the licensing of the broadcasting rights of outright-purchased drama series.
The business of outright-purchased drama series has strong growth trend, revenue representing a significant increase of 98.7%
The Group is primarily engaged in the business of licensing the broadcasting rights of self-produced and outright-purchased drama series. During the period, The Group shifted to focus on expanding their business of licensing the broadcasting rights of outright-purchased drama series to cater to the timing and content preferences of their customers.
During the period, The Group’s revenue generated form the licensing of the broadcasting rights of outright-purchased drama series was RMB253.7 million, representing a significant increase of 98.7% year on year. Primarily due to an increase of RMB88.9 million in revenue generated from first-run broadcast on satellite TV channels as a result of the licensing of the first-run broadcasting rights of “Waiting for You in Beijing” and “Skate into Love” during the first half of 2020; and an increase of RMB36.9 million in revenue generated from rerun broadcast on satellite TV channels, which was attributable to the licensing of the rerun broadcasting rights of “I Will Find You a Better Home”.
Self-produced drama series business is steadily promoting, profit margin was higher than a year earlier
During the period, revenue generated from our customers that are TV channels accounted for approximately 100.0% of our revenue generated from licensing the broadcasting rights of self-produced drama series. And 89.9% was generated from rerun broadcast on satellite TV channels, 9.6% was generated from broadcast on terrestrial TV channels and 0.5% was from third-party clients.
Profit margin of licensing the broadcasting rights of self-produced drama series was approximately 31.5% and 74.2%, respectively, for the six months ended 30 June 2019 and 2020. The Group’s gross profit margin of licensing the broadcasting rights of self-produced drama series for the six months ended 30 June 2020 was higher than that for the corresponding period in 2019. primarily because we licensed the rerun broadcasting rights of our self-produced drama series, “A Gallant Army”, to China Central Television in the first half of 2020, which had a higher gross profit margin; and the costs of sales in connection with the licensing of the rerun broadcasting rights of “Guerrilla Heroes” and “A Gallant Army” had been fully accounted for by the end of 2019.
Sufficient reserve of drama series, the Group is confident in the future business growth
The Group currently plan to begin filming a drama series named “Unparalleled at Thirty” in November 2020, and two other drama series, namely, “Please Eat with Lonely Me” and “Starting Line” in the first half of 2021. If the COVID-19 pandemic continues to spread in the second half of 2020 or the PRC government authorities prohibit us from filming their self-produced drama series to avoid new waves of infection, the Group have business contingency plans in place.
The Group have eight self-produced drama series, including seven TV series and one web series, which had completed production and are ready to be licensed to their customers. The Group will focus on expanding their business of licensing the broadcasting rights of outright-purchased drama series to offset the impact of the COVID-19 pandemic on the business of their self-produced drama series.
The management is confident in the future growth of our business. Even if in the face of uncertainties brought about by the COVID-19 pandemic to the industry and the overall business environment, the Group will be dedicated to implementing the business strategies as set out in the Prospectus.
About Litian Pictures Holdings Limited
Litian Pictures Holdings Limited is a drama series distribution company in the PRC. The Group was established in 2013, and is primarily engaged in the business of licensing the broadcasting rights of self-produced and outright-purchased drama series. In addition, they are engaged in [(i) investing in, and licensing the broadcasting rights of, drama series in which the Group act as non-executive producer under the co-financing arrangements; and (ii)] acting as a distribution agent of the broadcasting rights of TV series. On 22 June 2020, the Shares of the Company were successfully listed on the Main Board of the Stock Exchange.
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