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Shares of Enlight Media declined despite the Chinese entertainment company behind the animated hit Ne Zha 2 reporting record-breaking earnings in the first half of the year, driven by a significant increase in income from film and television projects.
The company’s stock closed down 4.8 percent at CNY6.31 (about 88 US cents) a share, while the broader Shenzhen market fell 1.4 percent.
According to their financial report, net profit skyrocketed 372 percent to CNY2.2 billion (approximately USD307.6 million) in the six months ending June 30, compared to the same period last year. Revenue from operations surged 143 percent to CNY3.2 billion.
In contrast, last year saw a 30 percent drop in net profit to CNY292 million (around USD40 million), with revenue increasing modestly by 2.6 percent to CNY1.6 billion. Over the past seven years, the company accumulated a total profit of CNY2.3 billion.
Enlight Media played a leading role in producing and distributing Ne Zha 2, which has grossed over CNY15.9 billion (approximately USD2.2 billion) globally, with 97 percent of that coming from mainland China.
Although they haven’t disclosed their exact revenue share from the film’s earnings, when box office revenue hit CNY4.8 billion (around USD671.1 million) in February, they reported receiving roughly CNY950 million to CNY1 billion (USD130 million to USD139.8 million).
The company is shifting focus from being merely a premium content provider to becoming an “intellectual property creator and operator.” They describe the IP management segment as a new growth area with promising long-term prospects.
During the first half of the year, Enlight Media’s merchandise division concentrated on Ne Zha intellectual property, spanning over 30 categories and more than 500 different products.
Additionally, the company has launched a gaming joint venture with a team exceeding 50 members. The new entity is currently developing its first AAA title, though specifics have not been shared.
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