YH Entertainment Group (YH ENT, 02306) released its audited results for the year ended 31 December 2025.

Revenue and Profitability • Full-year revenue rose 18.6% to RMB 906.97 million, driven mainly by artist-management income. • Gross profit increased 43.0% to RMB 223.19 million; gross margin improved to 24.6% from 20.4%. • Net profit advanced 62.1% to RMB 71.84 million, while operating profit grew 54.6% to RMB 84.47 million. • Non-IFRS adjusted net profit declined 18.4% to RMB 81.63 million owing to lower share-based payment add-backs.

Segment Performance • Artist Management: Revenue climbed 12.4% to RMB 748.51 million, accounting for 82.5% of total. Segment gross margin expanded to 22.8% (2024: 17.4%). • Music IP Production & Operation: Revenue surged 30.7% to RMB 55.19 million; margin widened to 40.0%. • IP Commercialisation (merchandise, photocards, concerts): Revenue rose 16.7% to RMB 66.13 million, but gross margin contracted sharply to 21.2% (2024: 44.6%) as costs outpaced sales. • Pop-Toys Operation: First-time contribution of RMB 37.13 million with a 45.0% gross margin.

Costs and Expenses Cost of revenue grew 12.4% to RMB 683.78 million, slower than topline growth. Revenue sharing to artists remained the largest cost at RMB 469.43 million (+10.9% YoY). Selling & marketing expenses inched up 4.2% to RMB 61.50 million, while general & administrative expenses fell 12.4% to RMB 82.50 million following lower share-based charges.

Balance Sheet and Cash Flow • Cash and cash equivalents stood at RMB 323.23 million (2024: RMB 386.06 million). • Bank borrowings were pared to RMB 58.43 million from RMB 162.30 million, cutting the gearing ratio to 4.4% (2024: 11.8%). • Financial assets at fair value through profit or loss totalled RMB 395.87 million, up 5.8% year-on-year.

Capital Management During 2025 the company repurchased 32.04 million shares for HK$ 68.99 million, holding them as treasury stock. No final dividend was proposed.

Operational Highlights Managed-artist roster reached 64, with 55 trainees in the pipeline. The group released 36 digital singles and nine digital albums, and expanded its global footprint via overseas music platforms and international concert tours. The newly launched pop-toy brand WAKUKU supported business diversification.

Outlook Management will focus on scaling core segments, deepening monetisation of IP assets, and expanding domestic and international reach while maintaining disciplined cost control and capital structure.