2025 Annual Board of Directors Work Report
Guomai Cultural Media Co., Ltd. (hereinafter referred to as "the Company") Board of Directors strictly adhered to the Company Law, Securities Law, and other legal regulations in its work throughout 2025. All directors diligently fulfilled their responsibilities as outlined in the Articles of Association, executed the resolutions of the shareholders' meeting, and actively promoted the implementation of board resolutions. The board continuously standardized the corporate governance structure, fulfilling its duties effectively to safeguard the interests of the Company and all shareholders. The following is a report on the board's work in 2025:
1. Overall Business Performance in 2025
In 2025, the Company achieved total operating revenue of 641 million yuan, a year-on-year increase of 10.11%. However, the net profit attributable to shareholders was a loss of 2.08 million yuan, a year-on-year decline of 105.10%. The net profit after deducting non-recurring gains and losses was a loss of 35.22 million yuan, a year-on-year decline of 196.35%. The retail market for books saw a 2.24% decline in sales volume, yet the Company's revenue grew against the trend. The profit decline was primarily due to increased investments in key areas to strengthen core business competitiveness, leading to higher expenses. These investments aim to build long-term competitive advantages, which may impact short-term performance but will support future growth. Additionally, the film "The Starry Sky of the Three Kingdoms Part One," primarily invested and controlled by the Company, failed at the box office, resulting in unrecoverable production costs and a loss of 43.6 million yuan in the film business for 2025.
(1) Book Publishing Business
In 2025, the Company's book publishing business generated revenue of 485.34 million yuan, a year-on-year increase of 14.35%. The direct sales revenue from the internet 2C channel was 120.87 million yuan, totaling 606.21 million yuan, a 9.33% increase compared to 2024. According to data from OpenBook, the overall book retail market saw a 2.24% decline, while the Company's book revenue growth significantly outperformed the market.
(2) Internet Business
- Internet 2C Sales Revenue: The Company developed internet content including text, audio, and video based on its proprietary content database. With a connection to 100.66 million internet users, the Company pushed relevant product information through various channels, generating internet 2C sales revenue of 120.87 million yuan, a decrease of 7.05% from 2024's 130.04 million yuan.
- Internet Advertising Revenue: With a large user base for its internet products, advertisers placed marketing promotions on the Company's internet accounts. In 2025, the Company's internet advertising revenue was 5.23 million yuan, an increase of 14.58% compared to 4.57 million yuan in 2024.
(3) Other Derivative Businesses
Other derivative businesses include e-books, audiobooks, film business, and IP derivatives and operations such as cultural products. The Company's other derivative revenue was 29.56 million yuan in 2025, a year-on-year increase of 27.83%. Among these, e-book and audiobook revenue was 18.89 million yuan, up 7.88% from 17.51 million yuan in 2024.