BRIEF: China Ruyi returns to profit in first half of 2025

Film and entertainment company China Ruyi Holdings Ltd. (0136.HK) announced on Wednesday that it expects to report a net profit of between 1 billion yuan ($139 million) and 1.2 billion yuan for the six months through June, reversing a net loss of 123 million yuan in the same period last year. It projected revenue of 2.1 billion yuan to 2.3 billion yuan for the six-month period, up 14% to 25% from 18.4 billion yuan a year earlier.

The company attributed the earnings improvement to steady business growth, the ongoing release of synergies, and improved monetization, which boosted both its revenue and profit. It also noted that the impact from fair value changes in contingent consideration related to its 2021 acquisition of Virtual Cinema Entertainment Ltd. had been removed.

China Ruyi’s main businesses span film and TV content production, online streaming, and online gaming. It owns online streaming platform Pumpkin Film and the Jingxiu Games brand. With the support of major shareholder Tencent (0700.HK), the company has aggressively expanded its gaming segment in recent years. In 2024, its gaming revenue surged by 346.6% to about 2 billion yuan, making it the company’s largest revenue contributor.

China Ruyi’s stock opened flat on Wednesday and closed at HK$3.25 by the midday break, up 0.31%. The stock is up 32.5% year-to-date.

By Lee Shih Ta

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