Financial Leasing Network on September 26 (Reporter Cui Ming) In the first half of the year, the performance of listed film companies generally declined, while Shanghai film (601595.SH) achieved overall growth mainly driven by its IP business. At today's semi-annual earnings briefing, the director of Shanghai film, Liu Linhe, revealed that two animated works, 'Summer of Little Monsters' and 'China Strange Tales 2,' are currently in production and scheduled to meet with audiences in 2025. 'Summer of Little Monsters' is slated for the summer of 2025.

As the core entity of the Shanghai Film Group's 'Large IP Development' strategy, Shanghai Element, holding 60 IP resources, achieved revenue and profit growth of over 100% in the first half of the year. Among various IP development directions, games attracted particular attention from investors at the earnings conference.

According to Shanghai film, in the first half of the year, Shanghai Element successively collaborated with various games such as 'Sky,' 'Fighting Peaceful Capital,' 'Eternal Interlude,' 'Super World,' 'Time Travel Agency,' 'Ball Hero,' and other games of multiple genres, with a total exposure exceeding 3 billion.

Furthermore, following the strategic cooperation between the company and Kingnet Network, they will jointly launch the first IP collaboration project 'Inspector Black Cat' authorized game. This IP mobile game adopts a tower defense gameplay method, highly restoring the animation.

Compared to the IP business, the company's film business in the first half of the year was under pressure due to the downturn of the large cap. Starting from June 2024, there was a significant gap in box office revenues between the summer season of 2024 and the same period in 2023, gradually increasing in July and August. Liu Linhe stated that the main reason was the inadequate number and production output of high box office quality films in the summer of 2024. 'The shortage of high box office quality films has disrupted the cinema operating model, which primarily relies on box office revenues from scheduled screenings. The company has begun implementing a new space operation plan located in core commercial areas.'

It is reported that since the rejuvenation and upgrade of the company's Shanghai Cinema SHO in June 2023, various 'film+' activities have been held, including film parties, premieres, IP derivatives, collaborative film exhibitions, themed cinemas, concerts, shopping festivals, live broadcasts of the Olympics, and esports. Thus, Shanghai film's non-ticket business has shown growth.

Regarding cinema asset planning, Shanghai film director and general manager Dai Yun stated that the company is focusing on Shanghai and the surrounding Jiangsu-Zhejiang region to enhance market share and expand strategic influence. In addition, around the IP end, the company is actively advancing the Shanghai iconic commercial complexes, the Meiluo City and Global Harbor projects.

According to Caijing reporter, Shanghai Film Group recently announced its 2024-2026 film lineup. A total of 16 films, including 8 upcoming projects, 5 projects in production, and 3 projects in development. In addition to the two animated films mentioned above, there are also live-action films such as "Operation Fox Hunt", "Good Stuff", "Thousand Miles of Rivers and Mountains". Dai Yun revealed that as a parallel piece to "Love Myth", "Good Stuff" is planned to be released in the fourth quarter of 2024.