Songcheng Performance Development Co., Ltd. (Songcheng Performance) saw a decrease in both revenue and net profit in the first half of this year, with the net profit dropping by 27.4% compared to the same period last year. The company attributed the decline in profit to factors such as reduced revenue from light asset export business.
In the “2025 Semi-Annual Report” released on August 27, Songcheng Performance stated that in the first half of 2025, it achieved a revenue of 1.08 billion yuan, representing an 8.3% decrease year-on-year, and a net profit of 400 million yuan, down by 27.4% compared to the previous year.
According to Songcheng Performance, the decline in profit was mainly due to a decrease in revenue from the light asset export business and an increase in advertising expenses, which led to a decrease in performance. During the reporting period, several major projects of Songcheng Performance showed a decrease in net profit compared to the previous year, with the Zhangjiajie Eternal Love project’s losses expanding by over 160%. It seems that the company’s advertising spending did not result in more revenue and profit.
The financial report also showed that the company’s sales expenses in the first half of this year were 78.7 million yuan, an increase of 48.6% year-on-year.
An article in the “Daily Economic News” on August 27 revealed that in recent years, Songcheng Performance’s sales expenses have been continuously increasing. The company’s semi-annual reports since its IPO in December 2010 showed that until 2019, the semi-annual sales expenses were mostly kept within 15 million yuan. However, in 2023, the sales expenses in the first half of the year increased by 145% to 19.98 million yuan, and further rose to 52.96 million yuan in the first half of 2024. In 2025, Songcheng Performance’s sales expenses increased by 48.6% year-on-year again, but did not lead to profit growth for the company. On the contrary, the net profit attributable to shareholders decreased by 27.4% year-on-year. The company regarded the increase in advertising expenses as one of the important reasons for the decline in profit.
In response to this, Lin Huanjie, the director of the China Theme Park Research Institute, told the media, “The audience for Eternal Love (Songcheng Performance’s main business) tends to be older, but this group typically lacks high stickiness and it’s difficult to have repeat consumption. They are easy to attract but also easy to lose, so during tight financial periods, a noticeable decline can be seen.”
Public information shows that Eternal Love (show of thousands) is a series of performance works produced by Songcheng Performance, which aims to evoke emotions in the audience through theme parks and artistic stages, showcasing Chinese stories.