Maoyan Entertainment (1896.HK) Q4 2024 Earnings Report

Maoyan Entertainment delivered a Q4 2024 result that showed a material YoY revenue decline and negative profitability, despite a stable QoQ top line. Revenue for QQ4 2024 was 955.64 million CNY, down 25.35% year over year and flat versus the prior quarter. The company posted an operating loss of 105.51 million CNY and an EBITDA loss of 95.13 million CNY, with a net loss of 51.46 million CNY and diluted EPS of -0.045. Gross profit reached 234.42 million, corresponding to a gross margin of 24.53%, indicating that cost of revenue remains a meaningful activity driver but allows limited upside given the current revenue mix. The balance sheet remains notably cash-rich, with total cash and short-term investments of approximately 2.51 billion CNY and a net debt position of about -421.8 million CNY, implying substantial liquidity to support continued content investments and platform development.

Operationally, Maoyan continues to run with elevated operating expenses (1.06 billion CNY in cost and expenses), reflecting ongoing investments in R&D, marketing, and general/administrative activity to strengthen its platform and content ecosystem. The strong liquidity position provides a buffer to pursue growth initiatives, but the near-term earnings trajectory hinges on improving gross margins and/or achieving operating leverage as revenue trends stabilize. Absent explicit near-term guidance, the quarter underscores the strategic challenge of translating a diversified revenue mix (ticketing, content distribution, advertising, and other services) into sustained profitability amid macro and industry-specific headwinds in China’s cinema and online entertainment markets.