In recent years, Generation Z has emerged as a dominant consumer force, driving a clear trend of spending on passion and shared experiences, as evidenced by the booming "concert economy" and "merchandise economy." Against this backdrop, the entertainment industry is undergoing structural transformation, with financial reports from leading companies serving as key indicators of market trends. On the evening of November 13, DAMAI ENT (01060) released its first financial report since rebranding: for the first half of fiscal year 2026, revenue reached RMB 4.047 billion, up 33% year-on-year, while net profit attributable to shareholders rose 54% to RMB 520 million, delivering impressive results.
The rebranding itself reflected DAMAI ENT's keen grasp of market trends, and this interim report further demonstrates the success of its "Entertainment + AI" strategic transformation. The company has established a diversified business model with synergistic growth. Notably, performance content & technology and IP derivative businesses stood out, generating revenues of RMB 1.339 billion and RMB 1.160 billion, up 15% and 105% year-on-year, respectively, becoming core drivers of growth.
**"Entertainment + AI" Strategy Aligns with Market and Industry Trends** On May 21, DAMAI ENT officially launched its "Entertainment + AI" strategy, focusing on the "real-world entertainment" ecosystem, which aligns closely with consumer expectations and industry evolution. The strong interim results confirm a promising start for this new strategy.
In ticketing, DAMAI ENT solidified its market leadership, with gross merchandise volume (GMV) on its platform growing steadily. The platform now boasts over 300 million users, maintaining its global industry lead, covering 40+ categories including movies, concerts, music festivals, theater, comedy shows, exhibitions, sports, and tourism. With access to 12,000+ cinemas, 20,000+ venues, and 100,000+ popular attractions, DAMAI ENT has successfully transformed from a performance ticketing platform into a one-stop entertainment ticketing hub.
The new DAMAI app, powered by AI, is accelerating its role as a super gateway for real-world entertainment consumption, built around a "fast, comprehensive, accurate, and convenient" service system. Meanwhile, its performance content investment strategy—balancing premium productions with accessible, affordable offerings—has shown strong growth momentum. Projects like the *2025 Aranya·Xiami Music Festival*, *Jackson Yee 2025 Concert "Mountain"*, and the musical *Six Lying Students* drove a 50%+ year-on-year increase in live entertainment content revenue. DAMAI ENT is gradually reducing reliance on ticketing alone, shifting toward a dual-driven revenue model combining content and ticketing.
**IP Derivatives Business Sees Explosive Growth** The IP derivatives segment also surged, with Aliyu, its core business unit, doubling both revenue and profit. In licensing, Aliyu has partnered with hundreds of top-tier domestic and international IPs and thousands of brands and distributors. In retail operations, Aliyu collaborated with copyright holders and collectible brands to launch several flagship stores in China. For example, the debut of *Chiikawa*'s first official offline flagship store in Shanghai in September sparked a consumer frenzy, underscoring the market potential of top IPs and Aliyu's strong monetization and full-chain service capabilities.
**Film Tech and Production Business Delivers Steady Results** DAMAI ENT's film production and distribution arm also performed well. Its co-produced and distributed movie *Shadow Chase* earned an 8.1 rating on Douban—the second-highest score for a Jackie Chan film—and grossed over RMB 1.2 billion, ranking third in the 2025 summer box office. TV series revenue grew significantly to RMB 484 million, supported by multiple high-rated and widely discussed shows, with over 20 projects in the pipeline.
These developments highlight DAMAI ENT's focus on content IP as a core driver, anchored by business innovation and user value to build a real-world entertainment ecosystem. As the "Entertainment + AI" strategy deepens, DAMAI ENT is poised to solidify its differentiated competitive edge, ensuring sustained and diversified growth.
**Diversified Business Model Redefines Entertainment Growth** Amid industry restructuring, DAMAI ENT's forward-looking strategy has enabled it to build a full-chain entertainment ecosystem: upstream content creation and IP development, midstream ticketing and digital distribution via DAMAI APP, Taopiaopiao, and Lighthouse, and downstream offline screenings and IP monetization through Aliyu. This diversified model—spanning performances, IP derivatives, film production, and tech innovation—not only enhances resilience but also fuels long-term growth.
Notably, DAMAI ENT is expanding beyond domestic markets. To meet growing cross-border demand, it is targeting Southeast Asia, Japan, and South Korea with its international platform, *MAISEAT*, launched on November 14. This global ticketing service for concerts, sports, festivals, and theater marks DAMAI ENT's first step toward becoming a globally competitive real-world entertainment group.
Analysts are bullish: China Merchants Securities rates DAMAI ENT a "strong buy," citing its dual-driven offline entertainment and IP model; Galaxy Securities highlights its leadership in live entertainment and overseas expansion potential; Morgan Stanley recommends "overweight," while Goldman Sachs initiates coverage with a "buy" rating and a HK$1.38 target price. The stock's steady rise since rebranding reflects market consensus on its strategic value.
With strong business momentum, DAMAI ENT is well-positioned to deliver sustained high growth, reinforcing market confidence in its future trajectory.