Be Friends reports mixed results amid strategic shift, new media revenue up

For the six months ended June 30, 2025, Be Friends Holding Limited reported total operating revenue of RMB676,320,000, an increase from RMB622,063,000 in the corresponding period of the previous year. This growth was primarily driven by its New Media Services Segment, which saw revenue rise by approximately 9.8% to RMB618,861,000. However, the group's profit for the period decreased to RMB56,350,000 from RMB83,813,000 in 2024, largely due to rising platform traffic acquisition costs and increased R&D investments in its "Friends Cloud" intelligent system.

Gross profit for the New Media Services Segment declined to RMB270,687,000 from RMB303,186,000, with the gross profit margin falling from 53.8% to 43.7%. Despite this, selling expenses as a proportion of revenue decreased slightly. The company also announced the disposal of its television broadcasting business, which was completed on July 31, 2025, reflecting a strategic pivot towards technology-driven new media businesses.

Net cash generated from operating activities saw a substantial increase to RMB138,509,000 from RMB20,263,000 in the previous year. The gearing ratio improved significantly, moving from 17.0% as at December 31, 2024, to -39.8% as at June 30, 2025, primarily due to increased bank balances and cash and the reclassification of liabilities associated with assets held for sale.