<div id="readability-page-1"><div><p>China Ruyi Holdings (SEHK:136) has put up a clean headline for FY 2025, with first half revenue of C¥2.2b and basic EPS of C¥0.08, after reporting losses in both halves of FY 2024. The company has seen total revenue edge from about C¥1.8b in each half of FY 2024 to C¥2.2b in the first half of FY 2025, while net income has moved from losses of C¥115m and C¥76m in FY 2024 to a profit of C¥1.2b, pointing to a sharp reset in margins that puts profitability back at the center of the story.</p> <p>See our full analysis for China Ruyi Holdings.</p><p>With the latest earnings numbers on the table, the next step is testing them against the widely held narratives around China Ruyi Holdings to see which views hold up and which need a rethink.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/61eac35f-fc48-4ef8-bdb9-bb54aa35a2a7/chart/earnings-and-revenue-history/query-ZGF0ZT0yMDI2LTA0LTAx?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/61eac35f-fc48-4ef8-bdb9-bb54aa35a2a7/chart/earnings-and-revenue-history/query-ZGF0ZT0yMDI2LTA0LTAx"/><figcaption>SEHK:136 Earnings &amp; Revenue History as at Apr 2026</figcaption></figure> <h2>Profit swings from C¥190m loss to C¥1.8b profit</h2> <ul> <li>On a trailing basis, net income moved from a loss of C¥190.533m in the 12 months to 2024 H2 to a profit of C¥1.796b in the latest 12 month period. Half year figures show a similar pattern, with losses of C¥114.653m and C¥75.88m in 2024 H1 and H2 shifting to a profit of C¥1.235b in 2025 H1.</li> <li>What stands out for a bullish view is that this move into profit lines up with earnings growth context, where trailing earnings are described as growing around 19.6% per year over five years and are also forecast at about 19.6% per year. However, the step from loss to profit means investors need to separate this fresh profitability signal from the longer term averages.     <ul> <li>Supporters can point to the C¥1.796b trailing net income and C¥1.235b 2025 H1 profit as evidence that the business is currently earning money rather than just being a growth story on paper.</li> <li>At the same time, the fact that both 2024 halves showed losses reminds readers that the recent profit is a relatively new development, so comparisons to the five year earnings growth rate are being made across very different starting points.</li> </ul> </li> </ul> <p>Some investors are using this swing back into profit as the starting point for their own story on the company, rather than relying only on historic growth averages or short term share moves. The community narratives can help you see how others are connecting these dots Curious how numbers become stories that shape markets? Explore Community Narratives.</p> <h2>31.3% revenue growth forecast versus market 8.5%</h2> <ul> <li>The analysis notes revenue is forecast to grow at 31.3% per year compared with a Hong Kong market forecast of 8.5% per year. The half year numbers show revenue at C¥1,839.559m and C¥1,831.201m in 2024 H1 and H2 versus C¥2,206.249m in 2025 H1.</li> <li>Supporters of a bullish narrative often lean on this gap in expected revenue growth, and the recent C¥2,206.249m half year revenue, to argue that the company offers higher growth exposure, yet the earlier 12 month revenue figures of C¥3,670.76m and C¥4,037.45m show that revenue levels have already moved around across periods.     <ul> <li>Backers point out that a forecast growth rate nearly 4 times the market, together with the swing to C¥1.796b trailing net income, suggests the company is not only growing its top line but also generating profit over the same horizon.</li> <li>More cautious readers may compare the 31.3% revenue growth expectation with the history of losses in 2024 and prefer to see how future halves match those forecasts before treating the growth profile as established.</li> </ul> </li> </ul> <h2>DCF fair value C¥4.75 versus P/E of 12.1x</h2> <ul> <li>The shares trade at HK$1.47 compared with a stated DCF fair value of HK$4.75 and an analyst target reference of HK$4.18. The trailing P/E of 12.1x sits above the Hong Kong entertainment industry average of 10.8x but below a peer average of 14.9x.</li> <li>Skeptical investors sometimes focus on that premium to the industry P/E and the fact that profitability is only a one year feature. However, the combination of a C¥1.796b trailing profit, a P/E that is still lower than the peer group and a share price well below both HK$4.75 DCF fair value and the HK$4.18 analyst target reference creates a different tension for the bullish case.     <ul> <li>On one hand, a higher P/E than the wider industry gives critics an anchor for saying the stock is priced at a premium relative to the broader sector, which can matter if the profit trend does not continue.</li> <li>On the other hand, the gap between HK$1.47 and both the DCF fair value and the analyst target reference is being used by bulls as a reason to pay that industry premium, given the current trailing earnings level and the 19.6% earnings growth context.</li> </ul> </li> </ul> <h2>Next Steps</h2> <p>Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on China Ruyi Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.</p> <p>With sentiment split between the sharp profit reset and questions around sustainability, it helps to look past the headlines and test the numbers yourself while the market is still forming a view. To see what the optimism is based on, review the 4 key rewards.</p> <h2>See What Else Is Out There</h2> <p>The sharp move from loss to profit sits alongside a history of recent losses and a P/E premium to the wider entertainment industry, which may leave you questioning consistency.</p> <p>If that patchy track record makes you want steadier fundamentals, check out 269 resilient stocks with low risk scores to quickly focus on companies where resilience is front and center.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

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<p>China Ruyi Holdings (SEHK:136) reported a profit of C¥1.2b for FY 2025, reversing losses from FY 2024. Revenue increased from C¥1.8b in FY 2024 to C¥2.2b in the first half of FY 2025. The company forecasts a revenue growth of 31.3% per year, significantly higher than the Hong Kong market's 8.5%. Despite a trailing P/E of 12.1x, above the industry average, the shares trade at HK$1.47, below the DCF fair value of HK$4.75, suggesting potential for growth amid cautious investor sentiment.</p>

China Ruyi Holdings (SEHK:136) Profit Swing To C¥1.2b Challenges Bearish Narratives