TV drama producer and distributor Strawbear Entertainment Group said last Friday it expects to report a net profit of 300,000 yuan to 5.8 million yuan for the first half of 2023.

The latest: TV drama producer and distributor Strawbear Entertainment Group (2125.HK) said last Friday it expects to report a net profit of 300,000 yuan ($42,200) to 5.8 million yuan for the first half of 2023, down 92.1% to 99.6% year-on-year.

Looking up: The company said it experienced a substantial increase in the number of drama series under multiple-round releases in the first half of the year.

Take Note: The profit plunge owed mainly to higher selling and distribution expenses and cost of sales, as well as intense competition in the drama series market.

Digging Deeper: Founded in 2014 by well-known Taiwanese actor Nicky Wu and listed on the Hong Kong Stock Exchange in 2021, Strawbear backs, produces and distributes TV dramas broadcast mainly in China via TV and online video platforms. A survey showed the vast majority of listed filmed entertainment makers lost money last year as many struggled during the pandemic, even as Strawbear remained profitable throughout that period. Its profit performance has slipped in recent years, but it still outperforms most of its peers.

Market Reaction: Strawbear shares fell on Monday, closing down 5.4% at HK$0.87 by the midday break. The stock now trades at the lower end of its 52-week range.

Translation by A. Au

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