“Hengdian Film and Television Co., Ltd. (Hengdian Film and Television) reported a non-GAAP net loss of 223 million yuan in 2024, with core business gross margin turning negative.
According to the “2024 Annual Report” released by Hengdian Film and Television, the company achieved a revenue of 1.971 billion yuan in 2024, a year-on-year decrease of 16.07%. It recorded a net loss attributable to the parent company of -96.3763 million yuan, a decrease of 158.11% compared to the same period last year, when it was 165.9 million yuan. The non-GAAP net loss was -223 million yuan, a decrease of 402.53% compared to the same period last year, which was 73.82 million yuan.
The annual report showed that in 2024, Hengdian Film and Television’s main business revenue was 1.918 billion yuan, down by 15.88% year-on-year. The main business cost expenditure was 1.908 billion yuan, a decrease of 5.52% compared to the previous year. The substantial decrease in revenue in comparison to the cost reduction led to a 10.91 percentage point decrease in the main business gross margin to 0.52%.
The report attributed the losses to the overall decline in China’s film market in 2024, where box office revenue and viewership declined. As a result, the company’s film screening and related business revenues were 1.769 billion yuan, a 19.58% decrease from the previous year. The box office revenue of the company’s cinemas was 1.657 billion yuan (excluding service fees), a 20.51% decrease, with a total of 45.9922 million viewers, a 20.01% decrease. Both the box office revenue and viewership decrease of the company were lower than the average level in China.
The Chinese media “Manager Magazine” stated on April 11 that film screening and related businesses, along with film and television investment, production, and distribution, are the two main businesses of Hengdian Film and Television, accounting for 87.01% and 10.28% respectively of the company’s revenue in 2024. Both of these businesses performed poorly in 2024.
Furthermore, Hengdian Film and Television’s current gross profit margin remains low. In 2024, the gross profit margin of the film and television investment, production, and distribution business was 14.22%, relatively low.
Overall, the Chinese film market in 2024 experienced a downturn, with the total box office revenue and urban cinema viewership declining by 22.6% and 22.3%, respectively, compared to 2023.
An internet user commented, “In the cold winter of the film and television industry plus the pandemic, Hengdian primarily relies on filming to make money. Now that it is a downtime, and they cannot make money from renting venues, it is inevitable for the gross profit margin to decline, resulting in losses.”
As of April 11, 11:30:00 Beijing time, Hengdian Film and Television’s stock price was reported at 14.89 yuan per share, a decrease of 6.76%, with a total market value of 9.443 billion yuan.
Hengdian Film and Television Co., Ltd. was established on September 4, 2008, with its headquarters located in Hengdian Town, Dongyang City, Zhejiang Province Hengdian Film and Television Industry Experimental Zone Business Building, focusing on film and television investment, production, distribution, film screening, and related businesses.”