Values Cultural Investment Limited Overview
Values Cultural Investment is a micro-cap, Hong Kong-listed, Mainland China-focused television and web-drama company that sits in the middle of the Chinese content value chain. It earns revenue by licensing broadcasting rights of TV and web series it has produced or purchased, by co-investing as a non-executive producer in third-party productions in exchange for a share of licence fees, by acting as a distribution agent for TV series, and — opportunistically — by adjacent services such as traffic marketing (2025) and performance/event services (2026). Since its 2020 IPO the business has contracted sharply: revenue fell from RMB87.6M in FY2020 to RMB20.2M in FY2025, cumulative net losses across FY2021–FY2025 exceeded RMB395M, and shareholders' equity shrank from RMB453.8M to RMB60.1M. Management is now pivoting toward web short dramas, AI-generated short dramas and live performance services, while relying on a substantial shareholder's undertaking of financial support to underpin the going-concern basis.
Company's own description (latest filings)
In its FY2025 results announcement and AR2025, the Group describes itself as principally engaged in (i) licensing of broadcasting rights of TV or web series; (ii) investing in TV series and web series as non-executive producer; (iii) acting as distribution agent of TV series; and (iv) providing traffic marketing services, while expanding into production and investment of web series, in particular web short series. In the 1H2026 interim announcement, the fourth business line was restated as performance services (演出服務), reflecting that traffic marketing ceased during FY2025, and management disclosed trial production of AI live-action short dramas (AI真人短劇) and noted the popularity of AI animated dramas (AI漫劇).
Business model and revenue model
| Revenue stream | Economic role | Accounting treatment | Typical counterparties |
|---|---|---|---|
| Licensing of broadcasting rights (executive producer) | Group originates, finances and owns copyright of a TV/web series, then licenses broadcast rights | Revenue from contracts with customers; production costs held as inventory (raw materials = scripts; WIP; finished goods = completed series) and expensed as cost of sales, subject to net-realisable-value write-downs | Satellite TV stations (first-, second-, third-tier), CCTV, online video platforms |
| Licensing of purchased copyrights | Group buys broadcast rights to finished series and re-licenses | Same as above | TV stations |
| Non-executive producer investments | Group co-finances third-party productions; receives net licence fee share | "Revenue from other sources"; where no copyright share, investments recognised as financial assets at FVTPL | Executive producers / co-investors |
| Net investment income from web series without share of copyright | Co-investors fund Group-produced web series and receive revenue share; Group retains copyright | Co-investor funding recognised as financial liabilities at FVTPL (FY2023) | Co-investors |
| Traffic marketing services (2H2025 only) | Marketing/traffic-acquisition services, apparently linked to web short-series distribution | Revenue from contracts; near-zero gross margin (RMB14.13M revenue vs RMB14.15M cost) | Not disclosed; one customer accounted for RMB18.0M of FY2025 revenue |
| Web series production (1H2026) | Production service income | Revenue from contracts (RMB0.78M) | — |
| Performance/event services (1H2026) | Planning, sourcing and artist/troupe liaison for live shows; box-office revenue shared with organising/execution company | "Revenue from other sources — event income" (RMB1.86M) | Show organisers |
The Group operates a project-based, intellectual-property-licensing model. Revenue is recognised at a point in time when broadcasting rights are granted to a customer after NRTA (National Radio and Television Administration) approval or receipt of a distribution licence (FY2023 results announcement, Note 5). The model has four distinct economic structures:
Product vs. service vs. licensing mix (derived from filings): In FY2025, licensing was 30.2% of revenue (RMB6.11M) and services (traffic marketing) were 69.8% (RMB14.13M). In 1H2026, licensing was 53.5% (RMB3.04M), event income 32.8% (RMB1.86M) and web-series production 13.7% (RMB0.78M). There is no subscription revenue.
Value-chain position
The Group is a mid-stream content producer/distributor. Upstream it buys scripts and engages production crews (it does not own studios or production equipment of significance — PP&E was RMB21k at 30 June 2026). Downstream it depends on a concentrated buyer base of broadcasters and long-video platforms, whose purchasing power deteriorated post-pandemic. Management repeatedly attributes losses to falling licence fees offered by TV stations (AR2023 Chairman's Statement).
Customer types and end-markets
Customers are TV stations (including CCTV, second- and third-tier stations) and online video platforms in Mainland China, plus (in 2025) a traffic-marketing customer. Customer concentration is extreme: in FY2025 one customer contributed RMB18.02M of RMB20.24M revenue (c.89%, derived); in FY2023 the top five customers contributed 82.9% of sales and the largest 23.8% (AR2023). All revenue in FY2021–FY2025 and 1H2026 was generated from customers in Mainland China.
Independent characterisation
Analytically, Values Cultural is a sub-scale, balance-sheet-driven content financier whose economics have been dominated not by operating margins but by impairments: inventory write-downs (RMB35.3M FY2022; RMB17.7M FY2023; RMB37.1M FY2024; RMB9.6M FY2025) and trade-receivable expected credit losses (RMB70.5M FY2022; RMB12.4M FY2023; RMB31.0M FY2024). By end-FY2025, 97.35% of gross trade receivables (RMB148.5M of RMB152.6M) were provided for. The company is effectively in run-off of a legacy long-form TV library while experimenting with lower-cost formats (web short series, AI short dramas) and non-content services. Its scale (22 staff, RMB20M revenue) places it far below the minimum efficient scale of leading Chinese drama houses.
Strategy
Stated strategic themes (paraphrased from AR2023, AR2025, 1H2026)
-
Prudence and cost control: adhere to prudent financial management in project selection and cost control (repeated in every annual and interim report since FY2021).
-
Customer relationships across tiers: explore business with first-tier TV stations and major online video platforms as well as second- and third-tier stations.
-
Format shift to web and short series: expansion into web series and, specifically, web short series given their popularity (FY2025); reallocation of IPO proceeds from TV to web series (2021–2022).
-
New-technology formats: continuous exploration of AI short dramas and AI animated dramas (1H2026).
-
Adjacent services: traffic marketing (2H2025, discontinued) and performance services (1H2026) to monetise distribution/marketing capabilities.
-
Project reserve: evaluating and purchasing scripts to increase project reserves (AR2023).
Strategic initiatives in the last 24 months (Oct 2024–Oct 2026)
| Initiative | Timing | Scale / target | Status |
|---|---|---|---|
| Web short-series licensing expansion | FY2025 | Drove licensing revenue +95.1% to RMB6.1M | Ongoing |
| Traffic marketing services | 2H2025 | RMB14.1M revenue at −0.1% margin | Discontinued within FY2025 |
| AI live-action short-drama production | 1H2026 | Several titles completed; no revenue | Pilot |
| Performance services (live show planning and artist sourcing; box-office share) | 1H2026 | RMB1.86M event income | Early stage |
| Web series production service | 1H2026 | RMB0.78M | Early stage |
| New non-wholly-owned subsidiary | 1H2026 | RMB0.55M NCI capital | Formed |
| Overhead reduction (HK office relocation, fax cancellation, board downsizing, auditor change) | 2025–2026 | Admin expenses −19.0% in FY2025 | Ongoing |
ESG / sustainability commitments
The company publishes annual ESG reports under HKEX Appendix C2 (reports available 2019–2024 per sustainabilityreports.com). No quantified emissions targets, net-zero commitments or sustainability-linked financing were identified.
Medium-term targets / guidance
Management has issued no quantitative medium-term financial targets or guidance. Qualitative outlook in the FY2025 announcement expects market conditions to remain difficult; the 1H2026 outlook is "cautiously optimistic" about TV/web series production and investment.
Products & Services
The company does not publish a full slate. The table below catalogues every title or project disclosed in filings reviewed; pricing is not publicly disclosed for any title.
Named titles
| Title (Chinese) | Format | Group role | Year of revenue / broadcast | Disclosed facts | Source |
|---|---|---|---|---|---|
| Great Pediatrician (了不起的兒科醫生) | TV series | Non-executive producer | FY2020 | Drove FY2020 net licence fee of RMB79.4M (one customer RMB79.4M); large cost recognition of RMB50.1M | FY2021 results |
| Scrambling For Gold (奪金戰) | TV series | Executive producer (self-produced) | FY2021 | Main contributor to FY2021 licensing revenue; lower-than-expected selling price compressed margin | FY2021 results |
| Grand Final (大決戰) | TV series | Purchased copyright | FY2021 | Main purchased-series licensing revenue in FY2021 | FY2021 results |
| Me and My Three Sisters (我和我的三個姐姐) | TV series | Non-executive producer | FY2021 | Main NEP revenue contributor; low gross margin | FY2021 results |
| Bluey (布魯伊) | Online cartoon | Licensing / NEP-type revenue | FY2021 | Contributor to FY2021 NEP revenue line | FY2021 results |
| The Pearl River Family (珠江人家) | TV series | Non-executive producer | FY2023 | Broadcast on CCTV, a second-tier and a third-tier station in Oct–Nov 2023 | AR2023 |
| Closer To You II (我的刺猬女孩之念念不忘) | Web series | Non-executive producer | FY2023 | NEP revenue contributor | AR2023 |
| You From The Future (來自未來的你) | Web series | Executive producer; co-investors without copyright | FY2023 | Generated RMB5.3M net investment income at 100% margin | AR2023 |
| Unnamed self-produced TV series (broadcast Sep 2023) | TV series | Executive producer | FY2023 | Broadcast Sep 2023 | AR2023 |
| Unnamed self-produced TV series (approved 2H2023) | TV series | Executive producer | Pending | Government approval obtained 2H2023; broadcast schedule still under negotiation with TV stations as at Aug 2026 | AR2023; FY2025; 1H2026 |
| Unnamed NEP TV series (shooting began Jan 2024) | TV series | Non-executive producer | Pending | Government approval obtained in FY2025; negotiating with TV stations | AR2023; FY2025; 1H2026 |
| Film trilogy (unnamed) | Films | Executive producer | Pending | Negotiating licensing with CCTV movie channel; one film approved by CCTV movie channel | FY2025; 1H2026 |
| 12 TV/web series broadcast in 2025 (unnamed) | TV/web | Non-executive producer | FY2025 | Generated revenue for the Group | FY2025 results |
| 2 web/short web series broadcast in 1H2026 (unnamed) | Web / short web series | Non-executive producer | 1H2026 | Broadcast during period | 1H2026 |
| AI live-action short dramas (several, unnamed) | AI short drama | Producer | 1H2026 | Completed several; no revenue yet | 1H2026 |
Planned IPO-era TV slate (prospectus plan, as updated)
| Planned series genre | Status (as at 30 Mar 2022) | Source |
|---|---|---|
| Revolution (1) | Temporarily suspended | FY2021 results |
| Family drama | Shooting planned 1H2022; first-run broadcast targeted 1H2023; total investment at least HK$60.0M | FY2021 results |
| Revolution (2) | Suspended | FY2021 results |
| Legend | Suspended | FY2021 results |
Service offerings
| Service | Description | Launch | Status | Economics |
|---|---|---|---|---|
| TV series distribution agency | Agency distribution of third-party TV series to stations | Pre-IPO | Ongoing (no separately disclosed revenue) | — |
| Traffic marketing services | Traffic/marketing services, linked to web short-series promotion | 2H2025 | Ceased within FY2025 | RMB14.13M revenue; RMB14.15M cost |
| Web series production service | Production for third parties | 1H2026 | Active | RMB0.78M revenue 1H2026 |
| Performance services | Show planning, sourcing, artist/troupe liaison; box-office share | 1H2026 | Active | RMB1.86M event income 1H2026 |
Financial Narrative
All figures RMB M unless stated; audited annual figures from FY2021, FY2023 and FY2025 results announcements (FY2022 and FY2024 comparatives taken from FY2023 and FY2025 announcements respectively).
Per-share data
No dilutive instruments outstanding in any year; weighted average shares 1,037.5M each year (FY2020: 1,022.7M).
Margins
Gross and net margins as reported by the company; EBIT/EBITDA margins derived.
Revenue CAGR FY2021–FY2025 (derived): −17.2% per annum (RMB43.14M to RMB20.24M). Measured from IPO year FY2020 (RMB87.59M), the five-year CAGR is −25.4% (derived).
Commentary — income statement. The defining feature of the five-year record is that impairment charges, not operating costs, drive results. Cash operating costs are modest and falling: administrative expenses declined from RMB14.65M (FY2021) to RMB11.94M (FY2025), with staff costs of c.RMB5M and professional fees of c.RMB3M reflecting fixed listed-company overhead. The FY2022 trough combined a revenue collapse with RMB70.5M of receivable ECL and a RMB13.0M derecognition of deferred tax assets. FY2023's revenue recovery was value-destructive at the gross line because RMB17.7M of inventory write-downs and terminated-script impairments were booked alongside sales. The FY2025 inflection — net loss down 81.7% — owes more to a RMB9.04M ECL reversal (collections on long-outstanding receivables) and lower write-downs (RMB9.6M vs RMB37.1M) than to underlying profitability. Excluding the ECL reversal, FY2025 pre-tax loss would have been c.RMB27.1M (derived). 1H2026 shows the first half-year gross profit since FY2020 (RMB1.71M, 30.2% margin), but revenue halved and the period loss of RMB3.82M still exceeded gross profit.
Balance sheet
Goodwill and intangibles: none recognised on the consolidated statement of financial position in any year (film/TV rights are carried within inventories). FY2021 net debt includes restricted cash.
Interim balance sheet update (30 June 2026, unaudited): total assets RMB73.65M; cash RMB7.57M (down RMB10.85M in six months); inventories RMB42.08M; net trade receivables RMB6.12M (gross RMB154.39M, allowance RMB148.27M); prepayments and other receivables RMB17.87M; tax payable RMB7.90M; total equity RMB56.74M (including RMB0.54M non-controlling interests); net current assets RMB58.96M; gearing 0.24%.
Commentary — balance sheet. Equity has fallen 87% from RMB453.8M at end-FY2020 to RMB60.1M at end-FY2025. Accumulated losses reached RMB271.5M at 30 June 2026 against capital reserve of RMB312.8M. Three balance-sheet items warrant scrutiny: (1) inventories of RMB42.1M now represent 53% of total assets and remain the largest residual value at risk, concentrated in finished series whose licence fees have repeatedly been marked down; (2) an RMB7.9M PRC tax payable has persisted since FY2021, essentially unchanged, suggesting an unresolved legacy liability; (3) cash has fallen from RMB143.4M (FY2020) to RMB7.6M (June 2026), despite no dividends, no buybacks and negligible capex — i.e., the IPO proceeds and pre-IPO cash have been consumed by content investment that did not recoup.
Ratios
ROE/ROA/current ratio/gearing as reported by the company. Discrepancy flag: the FY2025 results announcement states ROE "increased from approximately (77.2%) ... to approximately 26.0%"; given a net loss on positive equity, the correct sign is negative (derived: −18.02 / average equity 69.21 = −26.0%). The table shows the corrected sign.
Interim trend (first-half results)
Earlier interims: 1H2020 net loss RMB6.5M; 1H2021 net loss RMB27.9M; 1H2022 net loss RMB13.7M.
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansFinancial Detail
Group Entities
| Entity | Jurisdiction | Role | Source |
|---|---|---|---|
Values Cultural Investment Limited | Cayman Islands | Listed holding company | All filings |
YS Cultural Investment Limited | — | Intermediate holding; director Liu Peiyao, Shao Hui | AR2023 |
Fanta Culture Co., Limited (泛泰文化有限公司) | Hong Kong | Intermediate holding (HK subsidiary, 16.5% profits tax) | AR2023; FY2025 Note 7 |
Haining Fanning Television Planning Co., Ltd. (海寧泛寧影視策劃) | PRC (Zhejiang) | Wholly-owned PRC subsidiary (WFOE); GM is CEO Cai Xiaoxin | AR2023 |
Values Culture Media Co., Ltd. (海寧原石文化傳媒股份有限公司) | PRC (Zhejiang) | Consolidated affiliated entity under contractual arrangements (VIE); principal operating company | AR2023; FY2021 results |
Xinjiang Values | PRC (Xinjiang) | Operating subsidiary; EIT exemption 2018–2022 | FY2023 results, Note 8 |
Khorgas Values | PRC (Khorgas, Xinjiang) | Operating subsidiary; EIT exemption 2017–2021 | FY2023 results, Note 8 |
Khorgas Ming Yao | PRC (Khorgas, Xinjiang) | Operating subsidiary; EIT exemption Oct 2020–Dec 2024 | FY2023 results, Note 8 |
Unnamed non-wholly-owned subsidiary | PRC (not disclosed) | Received RMB0.55M from non-controlling interests in 1H2026 | 1H2026 |
Business line revenue (CNY Mn)
| Business line revenue (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Licensing of broadcasting rights of TV or web series | 36.17 | 3.17 | 42.68 | 3.13 | 6.11 |
Net licence fee as non-executive producer | 6.96 | 0.92 | 14.92 | 0.99 | 0.00 |
Net investment income from web series without copyright share | 0.00 | 0.00 | 5.32 | 0.00 | 0.00 |
Traffic marketing services | 0.00 | 0.00 | 0.00 | 0.00 | 14.13 |
Total revenue | 43.14 | 4.09 | 62.91 | 4.12 | 20.24 |
Business line share of revenue (%)
| Business line share of revenue (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Licensing of broadcasting rights | 83.9 | 77.6 | 67.8 | 76.0 | 30.2 |
Non-executive producer net licence fee | 16.1 | 22.4 | 23.7 | 24.0 | 0.0 |
Net investment income without copyright share | 0.0 | 0.0 | 8.4 | 0.0 | 0.0 |
Traffic marketing services | 0.0 | 0.0 | 0.0 | 0.0 | 69.8 |
Business line cost of sales (CNY Mn)
| Business line cost of sales (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Licensing of broadcasting rights | 38.30 | 35.51 | 86.82 | 34.54 | 9.28 |
Investments as non-executive producer | 5.09 | 6.99 | 37.19 | 8.48 | 2.74 |
Traffic marketing services | 0.00 | 0.00 | 0.00 | 0.00 | 14.15 |
Total cost of sales | 43.39 | 42.50 | 124.01 | 43.02 | 26.17 |
Business line gross profit (CNY Mn)
| Business line gross profit (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Licensing of broadcasting rights | -2.12 | -32.34 | -44.14 | -31.41 | -3.17 |
Non-executive producer net licence fee | 1.87 | -6.07 | -22.27 | -7.49 | -2.74 |
Net investment income without copyright share | 0.00 | 0.00 | 5.32 | 0.00 | 0.00 |
Traffic marketing services | 0.00 | 0.00 | 0.00 | 0.00 | -0.02 |
Total gross profit | -0.25 | -38.41 | -61.10 | -38.90 | -5.93 |
Business line gross margin (%)
| Business line gross margin (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Licensing of broadcasting rights | -5.9 | -1,018.8 | -103.4 | -1,002.5 | -51.8 |
Non-executive producer net licence fee | 26.9 | -662.6 | -149.3 | -757.0 | -100.0 |
Group | -0.6 | -939.0 | -97.1 | -943.5 | -29.3 |
Business line YoY revenue growth (%)
| Business line YoY revenue growth (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Licensing of broadcasting rights | -91.2 | 1,244.7 | -92.7 | 95.1 |
Non-executive producer net licence fee | -86.8 | 1,528.5 | -93.4 | -100.0 |
Total revenue | -90.5 | 1,438.2 | -93.4 | 391.0 |
Licensing revenue split (CNY Mn)
| Licensing revenue split (CNY Mn) | FY2020 | FY2021 | FY2022 | FY2023 |
|---|---|---|---|---|
Acted as executive producer | 2.42 | 24.51 | 0.95 | 42.68 |
Licensed purchased copyrights | 5.72 | 11.67 | 2.22 | 0.00 |
Revenue Lines
| Revenue line (CNY Mn) | 1H2025 | 1H2026 |
|---|---|---|
Licensing of broadcasting rights | 5.06 | 3.04 |
Traffic marketing services | 6.38 | 0.00 |
Web series production | 0.00 | 0.78 |
Net licence fee as non-executive producer | 0.01 | 0.00 |
Event (performance) income | 0.00 | 1.86 |
Total | 11.45 | 5.68 |
Income Statement
| Metric (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue | 43.14 | 4.09 | 62.91 | 4.12 | 20.24 |
Cost of sales | 43.39 | 42.50 | 124.01 | 43.02 | 26.17 |
Gross profit | -0.25 | -38.41 | -61.10 | -38.90 | -5.93 |
Other income and gains | 1.52 | 0.82 | 1.08 | 0.48 | 0.28 |
Selling and distribution expenses | 1.23 | 1.23 | 4.35 | 1.24 | 2.64 |
Administrative expenses | 14.65 | 13.13 | 14.37 | 14.74 | 11.94 |
Impairment (reversal) on financial assets | 27.54 | 70.50 | 12.40 | 31.02 | -9.04 |
Other expenses | 0.10 | 5.96 | 6.54 | 10.17 | 6.82 |
Share of losses of associate | 0.00 | 0.00 | 1.14 | 2.31 | 0.00 |
Finance costs | 0.00 | 0.04 | 0.35 | 0.24 | 0.02 |
Operating income (EBIT, derived = pre-tax + finance costs) | -42.26 | -128.41 | -98.82 | -97.89 | -18.00 |
Depreciation (PP&E + right-of-use) | 0.04 | 0.81 | 0.97 | 0.87 | 0.66 |
EBITDA (derived) | -42.22 | -127.60 | -97.85 | -97.02 | -17.34 |
Pre-tax income | -42.26 | -128.45 | -99.16 | -98.14 | -18.02 |
Income tax (credit) expense | -4.29 | 13.04 | 0.28 | 0.18 | 0.00 |
Net income attributable to owners | -37.97 | -141.49 | -99.44 | -98.32 | -18.02 |
Per-share metric (MYR Bn cents)
| Per-share metric (MYR Bn cents) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
EPS basic | -3.66 | -13.64 | -9.58 | -9.48 | -1.74 |
EPS diluted | -3.66 | -13.64 | -9.58 | -9.48 | -1.74 |
Dividends per share | 0 | 0 | 0 | 0 | 0 |
Book value per share (derived) | 39.95 | 26.56 | 17.01 | 7.54 | 5.80 |
Margin (%)
| Margin (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin | -0.6 | -939.0 | -97.1 | -943.5 | -29.3 |
Operating (EBIT) margin | -98.0 | -3,139.6 | -157.1 | -2,374.2 | -88.9 |
EBITDA margin | -97.9 | -3,119.8 | -155.5 | -2,353.1 | -85.7 |
Net margin | -88.0 | -3,459.4 | -158.1 | -2,384.6 | -89.0 |
Balance Sheet
| Metric (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets | 437.00 | 302.04 | 204.60 | 100.03 | 78.73 |
Cash and cash equivalents | 117.99 | 39.05 | 42.67 | 20.71 | 18.42 |
Restricted cash | 1.80 | 0.00 | 0.00 | 0.00 | 0.00 |
Inventories (scripts, WIP, finished series) | 92.89 | 135.06 | 72.41 | 47.47 | 42.06 |
Trade and notes receivables (net) | 138.35 | 39.46 | 52.85 | 10.11 | 4.04 |
Gross trade receivables | 179.54 | 149.81 | 179.51 | 167.69 | 152.58 |
ECL allowance on trade receivables | 45.27 | 115.77 | 126.66 | 157.58 | 148.54 |
Prepayments, other receivables (current) | 43.65 | 80.22 | 30.47 | 20.77 | 14.17 |
Financial assets at FVTPL | 28.03 | 0.00 | 0.00 | 0.00 | 0.00 |
Investment in associate | 0.00 | 7.00 | 5.86 | 0.00 | 0.00 |
Deferred tax assets | 14.12 | 0.00 | 0.00 | 0.00 | 0.00 |
Short-term interest-bearing borrowings | 0.00 | 0.00 | 2.48 | 0.00 | 0.00 |
Lease liabilities (current) | 0.00 | 0.88 | 0.00 | 0.77 | 0.16 |
Lease liabilities (non-current) | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 |
Total debt incl. leases | 0.00 | 0.88 | 2.48 | 0.77 | 0.21 |
Net debt (negative = net cash) | -119.79 | -38.17 | -40.19 | -19.94 | -18.21 |
Tax payable | 7.61 | 7.61 | 7.84 | 7.90 | 7.90 |
Total liabilities | 22.52 | 26.46 | 28.17 | 21.76 | 18.59 |
Total equity | 414.48 | 275.58 | 176.43 | 78.27 | 60.14 |
Goodwill and intangibles | 0 | 0 | 0 | 0 | 0 |
Working capital (net current assets) | 401.27 | 267.34 | 172.13 | 80.18 | 62.41 |
Cash-flow metric (CNY Mn)
| Cash-flow metric (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net change in cash and cash equivalents (derived) | -25.38 | -78.94 | 3.62 | -21.97 | -2.28 |
Dividends paid | 0 | 0 | 0 | 0 | 0 |
Share buybacks | 0 | 0 | 0 | 0 | 0 |
Cash-flow item | Disclosure status | — | — | — | — |
Operating cash flow | FY2025: net outflow of RMB1.394M (FY2025 results, going-concern note). | — | — | — | — |
Capex | Company states no significant capital expenditure in any of FY2021–FY2025 (purchases limited to electronic/office equipment and leasehold improvements). FY2025 PP&E additions were RMB0.298M (1H2026 Note 9 comparative). | — | — | — | — |
Free cash flow | FY2025 FCF ≈ −RMB1.7M (derived: OCF −1.394 less PP&E additions 0.298). | — | — | — | — |
Dividends / buybacks | None declared or paid FY2020–1H2026; no repurchases of listed securities in any year (results announcements). | — | — | — | — |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%) | -8.7 | -41.0 | -44.0 | -77.2 | -26.0 |
ROA (%) | -8.2 | -38.3 | -39.3 | -64.5 | -20.2 |
Current ratio (x) | 19.7 | 11.1 | 7.6 | 5.2 | 4.8 |
Gearing — interest-bearing debt to equity (%) | 0.00 | 0.32 | 1.41 | 0.98 | 0.36 |
Asset turnover (x, derived on average total assets) | 0.093 | 0.011 | 0.248 | 0.027 | 0.226 |
Inventory to revenue (x, derived) | 2.15 | 33.02 | 1.15 | 11.51 | 2.08 |
Financial Analysis
| Ratio | Assessment |
|---|---|
ROIC | Not meaningful: invested capital net of cash is small and NOPAT negative in every year |
Net debt / EBITDA | Not meaningful: net cash position and negative EBITDA throughout |
Interest coverage | Not meaningful: negative EBIT; finance costs RMB0–0.35M (mainly lease interest; RMB0.33M borrowing interest FY2023, RMB0.21M FY2024) |
Cash conversion cycle | Not meaningful/not computed: receivable days exceeded 1,000 days in low-revenue years; credit terms 30–365 days; payable terms 90–180 days (FY2025 Notes 11–12) |
Income Statement (1H2023–1H2026)
| Metric (CNY Mn) | 1H2023 | 1H2024 | 1H2025 | 1H2026 |
|---|---|---|---|---|
Revenue | 16.72 | 5.40 | 11.45 | 5.68 |
Gross profit | -1.60 | -1.60 | 1.29 | 1.71 |
Net loss | -13.10 | -15.00 | -6.47 | -3.82 |
Geographic revenue (CNY Mn)
| Geographic revenue (CNY Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Mainland China | 43.14 | 4.09 | 62.91 | 4.12 | 20.24 |
Hong Kong and rest of world | 0 | 0 | 0 | 0 | 0 |
Geographic share (%)
| Geographic share (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Mainland China | 100 | 100 | 100 | 100 | 100 |
Share data
| Share data | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Shares outstanding (M) | 1,037.5 | 1,037.5 | 1,037.5 | 1,037.5 | 1,037.5 |
Dividends per share (MYR Bn) | 0 | 0 | 0 | 0 | 0 |
Book value per share (MYR Bn cents) | 39.95 | 26.56 | 17.01 | 7.54 | 5.80 |
Capital Markets
| Item | Data | Source |
|---|---|---|
IPO price | HK$0.50 (16 Jan 2020); stock rose on debut | FY2021 results; Stockopedia headline |
12-month trading range (c. late Sep 2025) | HK$0.05 – HK$0.15 | TipRanks |
Implied price at HK$102.71M market cap (c. Sep 2025) | c.HK$0.099 (derived) | TipRanks |
Implied price at HK$169.11M market cap (undated) | c.HK$0.163 (derived) | Stockopedia |
Performance vs IPO | Implied decline of roughly 67–80% from HK$0.50 based on the above data points (derived) | Derived |
Valuation Snapshot
| Multiple | Value | Basis |
|---|---|---|
P/E | Not meaningful (loss-making) | FY2025 EPS −RMB1.74 cents |
EV/EBITDA | Not meaningful (negative EBITDA) | FY2025 |
EV/Sales | c.6.7x (derived) | Stockopedia EV HK$147.81M ≈ RMB135M ÷ TTM revenue RMB20.24M |
P/B | c.1.5–2.8x (derived) | Market cap HK$102.7M–169.1M vs equity RMB56.2M–60.1M |
Peer reference — Strawbear | Market cap HK$374.2M; P/S 0.33x | TipRanks |
Peer reference — Huace | Market cap RMB13.2bn (Sep 2026) | Guosen Securities report |
Capital Markets — Analyst consensus
| Item | Status |
|---|---|
Analyst consensus | No sell-side coverage identified |
Dividend policy | Formal policy with no fixed payout ratio; no dividends since listing |
Credit ratings (Moody's / S&P / Fitch) | Not rated |
Debt maturity profile | No borrowings; lease liabilities RMB0.135M current (Jun 2026) |
Share option scheme | 100,000,000-share mandate; no grants ever made |
Analyst Conclusions
Management guidance
No quantitative guidance. The FY2025 announcement expects market conditions to remain difficult; the 1H2026 announcement is cautiously optimistic, emphasising AI short dramas and animated dramas, prudent project selection, cost control and web/short series opportunities.
Consensus
No analyst consensus exists.
Bull case
-
Earnings inflection is real at the gross line: 1H2026 gross profit of RMB1.71M (30.2% margin) shows that, with write-downs largely taken, residual content can be licensed profitably.
-
Pipeline catalysts: an approved self-produced TV series, an approved NEP TV series and a CCTV-approved film could each produce lumpy licence revenue against a cost base of c.RMB12M per year.
-
Clean, debt-free listed vehicle with supportive shareholders: zero borrowings, a substantial shareholder's support undertaking and concentrated ownership (63.8% held by six holders) make a recapitalisation or strategic injection feasible.
Bear case
-
Liquidity is the binding constraint: cash fell RMB10.85M in 1H2026 to RMB7.6M, below one year of administrative expense; without new revenue or shareholder funding, dilution or distress is likely.
-
Track record of over-valuation: RMB102.5M of NRV write-downs and RMB141.0M of receivable ECL in four years undermine confidence in the RMB42.1M remaining inventory.
-
Revenue quality is poor: FY2025's recovery relied on a near-zero-margin traffic marketing contract (69.8% of revenue) from essentially one customer, which then ceased; 1H2026 revenue halved.
Key catalysts and monitorables (next 12 months)
| Monitorable | Why it matters |
|---|---|
| Broadcast scheduling of the self-produced TV series approved in 2H2023 | Largest potential licence revenue event |
| CCTV Movie Channel licence terms for the film trilogy | Converts approved inventory to cash |
| AI short-drama first revenues | Tests the new strategy |
| Cash balance at 31 Dec 2026 and any shareholder loan/placement | Going-concern resolution |
| BDO audit opinion on FY2026 accounts (Mar 2027) | Any emphasis of matter or qualification |
| Resolution of the RMB7.9M tax payable | Legacy liability |
| Further board changes or change of control | Governance and strategic direction |
| Collections on RMB148.5M provided receivables | Potential ECL reversals |
Analyst verdict
Values Cultural Investment is best understood as a post-IPO restructuring story whose original thesis — a mid-sized independent producer licensing TV dramas to satellite broadcasters — has been invalidated by structural changes in Chinese content buying and by the company's own capital-allocation errors. Between FY2020 and FY2025 it converted roughly RMB394M of equity into losses, overwhelmingly through inventory write-downs and uncollectable receivables rather than through overhead, which has remained disciplined at around RMB12–15M a year.
The investment case therefore hinges on three binary items: whether the long-delayed approved TV series and CCTV film deals convert to cash; whether AI short dramas and performance services can generate repeatable, positive-margin revenue at the Group's micro scale; and whether the substantial shareholder's support undertaking is backed by actual capital as cash approaches exhaustion. Governance signals are mixed: chair/CEO separation and a majority-qualified audit committee are positives, but poor board attendance, family relationships, board attrition and a Big Four auditor's resignation warrant caution.
At indicative valuations of roughly 1.5–2.8x book and over 6x sales, the stock does not price in the bear case; its valuation appears supported more by listed-platform optionality and concentrated ownership than by fundamentals. On the evidence, we regard the equity as speculative, with fundamental downside if the pipeline disappoints and equity-raising becomes necessary, and with upside contingent on an external catalyst (strategic investor, asset injection or a hit title) that is not currently disclosed. Investors should require evidence of positive operating cash flow, or a confirmed recapitalisation, before treating the 2026 loss reduction as a durable turnaround.
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansExecutive Leadership
Board of Directors
| Name | Title | Appointed (board of listco) | Age (as stated in AR2023; birth year per Yahoo) | Background / prior roles | Education |
|---|---|---|---|---|---|
Liu Naiyue (劉乃岳) | Chairman, Executive Director | Director Jun 2019; Chairman Jun 2019; Values Culture director since Nov 2013 | 59 in AR2023 (born 1965) | c.19 years in securities: Shandong Securities Qingdao (1994–97), Tiantong Securities NE HQ GM (2000–04), Capital Bridge Securities VP (2004–07), Qingdao Fuhe Investment (2007–11), Suzhou Funa Culture VP (2011–13). Substantial shareholder via BLW. Father of Liu Peiyao | BEng Northeastern University (1985); MEcon (1991) and PhD Economics (2002), Nankai University |
Cai Xiaoxin (蔡曉昕) | CEO (since 27 Aug 2021); Executive Director (Jun 2022); GM of Haining Fanning; Nomination Committee member (16 Jun 2026) | Jun 2022 | 47 in AR2023 (born 1978) | Shenzhen procuratorate (1999–2003); CSRC Shenzhen Bureau examiner (2004–08); Essence Securities heads of compliance, risk, HR (2008–13); Founder Securities Financing Services compliance director/CRO (2013–16); Suiyong Holdings general VP and chair of Shenzhen Suiyong Huizhi since 2016 | LLB China University of Political Science and Law (1999); LLM Peking University (2003); EMBA CKGSB (2019) |
Liu Peiyao (劉佩瑤) | Executive Director (financial affairs) | Mar 2019 (ED Jun 2019) | 31 in AR2023 (born 1993) | Director of Values Culture since Jun 2015; director of YS Cultural and Fanta Culture. Holds 23.17% of BLW | BSc Finance, Michigan State University (2014) |
Li Fang (李芳) | Executive Director (production project planning) | Jun 2019 | 42 in AR2023 (born 1982) | Deputy GM Values Culture since Feb 2014; previously Suzhou Funa project planning centre (2007–14) | BA Chinese, MA Film Production, PhD Film & TV Studies — Nanjing Normal University |
Shao Hui (邵輝) | Non-executive Director | Mar 2019 (NED Jun 2019) | 45 in AR2023 | Chairman of Zhejiang Jihua Group (603980.SH, dyestuffs) since Dec 2005; Values Culture director since Oct 2017; holds 9.69% via SDJZ | Not disclosed in AR2023 extract |
Xian Guoming (冼國明) | INED; Chair, Nomination Committee | Dec 2019 | 69 in AR2023 | Professor of Economics, Nankai University since 1993; director of Nankai Research Center on Multinational Corporations; former VP of China Society of World Economics | BEcon, MEcon, PhD Economics — Nankai University |
Zhong Mingshan (鐘明山) | INED; Chair, Audit Committee | Dec 2019 | 72 in AR2023 | CPA since 1992; ShineWing partner (Qingdao) 2007–14; Shandong Desheng CPA chief accountant | Diploma, Qingdao Institute of Architecture and Engineering |
Xu Zongzheng (徐宗政) | INED; Chair, Remuneration Committee | Dec 2019 | 50 in AR2023 | TV director/producer of 20+ productions since 2004 (e.g., Red Dawn 2011, Mr. Nanny 2018); member of China TV Director Committee since 2011 | Diploma, PLA Arts College (1998) |
Liu Jingping (劉京平) | INED | Jun 2020 | 62 in AR2023 | CEO of Beijing Film Yango Development since Jul 2017; chair of Beijing Guoli Huaye International Culture Media (2005–17) | Master's degrees (CUEB, Asia International Open University, Peking University Guanghua); DBA University of Hong Kong |
Executive Leadership Team
| Name | Title | Joined | Age (AR2023) | Background |
|---|---|---|---|---|
Wang Haiting (王海婷) | Chief Financial Officer; Joint Company Secretary (since 9 Apr 2020) | Aug 2014 | 35 | Former deputy head of finance, Baili Sifang Smart Grid; BA Hunan University, MA Tianjin Normal University |
Yan Bei (閆蓓) | Chief Publicity & Marketing Officer, Values Culture | Feb 2014 | 39 | Former deputy GM distribution, Suzhou Funa; BA Wuhan Conservatory of Music |
Au Yeung Ming Yin Gordon (歐陽銘賢) | Joint Company Secretary (external provider); periodic alternate director to Chairman at AGMs | — | — | 20+ years audit/CFO/company secretarial for HK-listed issuers |
“—” = not publicly disclosed.
Directors' Remuneration
| Individual | Reported pay (CNY K) | Period | Source / caveat |
|---|---|---|---|
Liu Naiyue | 633.9 | — | Yahoo Finance |
Cai Xiaoxin | 451.25 | Same | Yahoo Finance |
Li Fang | 331.99 | Same | Yahoo Finance |
Liu Peiyao | 143.97 | Same | Yahoo Finance |
Key management personnel total | 907 (1H2026) vs 705 (1H2025) | Six months | 1H2026 Note 15 |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
26–27 Aug 2021 | Wu Tao resigns as CEO; Cai Xiaoxin appointed CEO | Wu Tao remains a 15.44% BLW holder |
2022 (by Jun) | Wei Xian leaves board; Cai Xiaoxin appointed ED (Jun 2022) | — |
28 Apr 2023 | Xu Jun resigns as ED; Liu Tieqiang appointed ED | Xu Jun remains 8.37% holder via JMJ Group |
23 Sep 2024 | Shen Yi resigns as NED | Suiyong-affiliated |
25 Jul 2025 | EY resigns; BDO appointed | Auditor change |
30 Mar 2026 | Qu Guohui resigns as ED | Suiyong chairman |
26–29 May 2026 | Au Yeung appointed and ceased as alternate to Chairman around AGM | Recurrent practice |
16 Jun 2026 | Liu Tieqiang resigns as ED and COO; Cai Xiaoxin joins nomination committee | Board shrinks to 9 |
Major Shareholders
| Holder | Shares | % of issued | Beneficial owners / notes |
|---|---|---|---|
BLW Investment Limited | 239,002,500 | 23.04 | Bai Yang 43.44%, Liu Peiyao 23.17%, Wu Tao 15.44%, Liu Naiyue 9.65%, Wei Xian 8.30% (acting in concert, deed 27 Aug 2021) |
Suiyong Int'l Co., Limited | 110,010,000 | 10.60 | Wholly owned by Suiyong Holdings Company Limited (穗甬控股) |
SDJZ Investment Limited | 100,622,500 | 9.69 | Shao Hui 91.00%; Hangzhou Baihuiquan fund and Tibet Langrun deemed interested |
JMJ Group Limited | 86,872,500 | 8.37 | Xu Jun 97.84% (former ED) |
SYYT Investment Limited | 70,002,500 | 6.74 | Sun Xianliang 40.62% |
Jinping Holding Limited | 54,997,500 | 5.30 | Jin Ping 100% |
Subtotal disclosed substantial holders | 661,507,500 | 63.76 | Derived |
Other holders (implied free float) | 375,992,500 | 36.24 | Derived |
Competitive Landscape
Key Competitors
| Competitor | Listing | Overlap with Values Cultural | Latest verified scale | Relative positioning |
|---|---|---|---|---|
Zhejiang Huace Film & TV (華策影視) | 300133.SZ | Long-form TV/web series production and licensing; micro-short dramas (36 short dramas launched in 2025) | FY2025 revenue RMB2,828M (+45.9%); net profit attributable RMB191M (−21.4%); film & TV revenue RMB2,626M | Industry leader; c.140x Values Cultural's revenue |
Strawbear Entertainment (稻草熊娛樂) | 2125.HK | HK-listed drama producer/distributor; platform licensing | FY2025 revenue RMB1,029.3M (FY2024 RMB1,124.5M); gross profit RMB116.7M; loss attributable RMB2.0M | Closest HK-listed pure-play peer, c.50x scale |
Perfect World (完美世界) film & TV unit | 002624.SZ | Drama production | Film & TV revenue RMB596M in Q1 2025 alone | High-volume producer within gaming group |
Huanrui Century (歡瑞世紀) | 000892.SZ | Drama production; micro-short dramas | FY2024 net loss RMB241M; Q1 2025 loss RMB4.07M | Loss-making peer pivoting to short dramas |
Happiness Blue Ocean (幸福藍海) | 300528.SZ | TV series production | — | Regional producer |
Linmon Media (檸萌影視) | — | Premium drama production | — | Premium content house |
Ciwen Media (慈文傳媒) | 002343.SZ | TV series production | — | Mid-tier producer |
Mango Excellent Media (芒果超媒) | 300413.SZ | Platform-owned production; also a buyer | — | Vertically integrated platform |
iQIYI / Tencent Video / Youku | NASDAQ IQ / HKEX 0700 / Alibaba | Self-produced content competes with licensed content; also key customers | — | Buyer power and competitor |
Short-drama and AI-drama studios (e.g., platforms on Douyin/Kuaishou) | Various | Web short series, AI short dramas | — | Low-barrier, fragmented competition in Values Cultural's new focus area |
Peer Comparison FY2025
| Metric | Values Cultural (1740.HK) | Huace Film & TV (300133.SZ) | Strawbear (2125.HK) |
|---|---|---|---|
Revenue (CNY Mn) | 20.2 | 2,828 | 1,029.3 |
Revenue growth YoY (%) | +391.0 | +45.9 | −8.5 (derived) |
Gross margin (%) | −29.3 | — | 11.3 (derived) |
Net margin (%) | −89.0 | 6.8 (derived) | −0.2 (derived) |
Net assets (CNY Mn) | 60.1 | — | 1,758.7 |
Employees | 22 | — | 77 (TipRanks) |
