2025 Annual Board of Directors Work Report
During the reporting period, the Board of Directors of Huanrui Century United Co., Ltd. (hereinafter referred to as "the Company") strictly fulfilled its responsibilities in accordance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Shenzhen Stock Exchange Listing Rules, the Articles of Association of Huanrui Century United Co., Ltd. (hereinafter referred to as "the Articles of Association"), and the Rules of Procedure for Board Meetings of Huanrui Century United Co., Ltd., as well as relevant laws, regulations, and related systems. The board actively and effectively exercised its powers with a responsible attitude towards all shareholders, continuously improved the corporate governance structure, steadily enhanced the level of corporate governance, and effectively safeguarded the interests of the company and all shareholders. The following is a report on the work of the Board of Directors for 2025:
I. Completion of Key Economic Indicators and Main Business Overview
During the reporting period, the Company achieved operating revenue of 526,677,275.03 yuan, an increase of 36.84% compared to the same period last year. Among this, revenue from film and television dramas and derivatives was 327,577,354.93 yuan, an increase of 48.69% year-on-year; revenue from artist management was 198,720,401.74 yuan, an increase of 20.88% year-on-year. The net profit attributable to shareholders of the listed company during the reporting period was -252,279,741.17 yuan. The Company continued to deepen its main business layout, enhance the commercialization capabilities of various businesses, and achieve revenue diversification. The main sources of operating revenue were from film and television dramas and artist management-related businesses. During the reporting period, the Company continued to implement innovative practices in short drama content and marketing models, balancing efforts across multiple segments such as high-quality short dramas on platforms, mini-program short dramas, and interactive dramas, resulting in a significant increase in short drama business revenue and a substantial growth in overall operating revenue compared to the same period last year.
(1) Main Business Operations
- Television Drama Business
During the reporting period, the Company continued to focus on content production, creating high-quality film and television dramas. The Company advanced the creation of quality content, established good cooperation mechanisms with creators, maintained long-term collaborations with major platforms, and ensured a continuous output of high-quality content. The Company deepened the development of its own IP system, conducting comprehensive development around core IPs, and established long-term collaborations with well-known authors and screenwriters in the industry. As of the date of this report, the Company has achieved the first round of broadcast for dramas including "Qianqiu Ling," "Jiao Ou Tian Cheng," "Gu Jian Qi Tan: Qin Xin Jian Po," and "Gu Jian Qi Tan: Fen Ji Tian Jie." During the reporting period, the Company held adaptation rights for over 40 dramas including "Cang Hai Xiao" (originally titled "Xiao Chen"), "Tian Xiang," "Zhe Xian," "Shi Zhou San Jing," and "Bu Xing Si." The Company expects to gradually produce or broadcast dramas including "Qian Xiang" and "Shi Nian Yi Pin Wen Ru Yan" starting in 2026, with IPs such as "Cang Hai Xiao," "Tian Xiang," "Zhe Xian," "Shi Zhou San Jing," and "Bu Xing Si" also set to begin production in 2026 and subsequent years based on script creation and project preparation progress (specific investment and filming schedules will be reasonably arranged according to project preparation progress and market conditions).