STAR CM (06698) released its 2025 audited results: revenue edged up 3.20% year on year to RMB168.30 million, while gross profit more than doubled to RMB88.13 million, lifting the gross margin from 24.5% to 52.3%. The annual loss attributable to shareholders narrowed 48.27% to RMB118.15 million.
Revenue mix shifted noticeably. Variety-program IP production, operation and licensing rose 15.28% to RMB39.08 million, supported by higher-margin directing and post-production services. Music IP income surged 125.09% to RMB31.47 million on renewed licences of legacy songs. Film and drama series IP revenue stayed stable at RMB62.17 million, while other IP-related businesses fell 34.95% to RMB35.55 million amid fewer artist engagements and offline events.
Cost of sales dropped 34.92% to RMB80.15 million, mainly reflecting reduced production spending and a smaller headcount in the variety segment. Administrative expenses were cut 45.11% to RMB49.62 million, and goodwill impairment slid to RMB3.01 million from RMB48.54 million. Share of losses from associates expanded to RMB103.52 million owing to property impairments at two real-estate investees.
The balance sheet remained liquid. Cash and cash equivalents stood at RMB427.39 million with no bank borrowings, resulting in a gearing ratio of just 0.12%. Trade receivables fell 29.63% to RMB69.68 million, while provisions for litigation shrank 85.11% to RMB5.28 million after settlements. Inventories increased to RMB53.46 million, reflecting the purchase of scripts for adaptation.
Capital deployment included a RMB115.00 million investment in a newly formed AI-music joint venture. Financial assets at fair value through profit or loss declined to RMB22.91 million after disposals and market fluctuations. No dividend was proposed for 2025.
Management intends to deepen content creation across variety shows, music, films and drama, accelerate AI integration—such as interactive film-games and AI-powered comics—and continue exploring acquisitions and partnerships to broaden monetisation channels.