New Stock News | PT MNC Digital Entertainment Tbk-S Files for Listing on the Hong Kong Stock Exchange as One of the Leading Digital Media Entertainment Groups in Southeast Asia

According to the disclosure made by the Hong Kong Stock Exchange on April 27, PT MNC Digital Entertainment Tbk-S (hereinafter referred to as MNC Digital) has submitted an application for listing to the Hong Kong Stock Exchange, with CICC as the exclusive sponsor. Introduction The prospectus shows that according to MPA data, based on 2025 revenue, MNC Digital is one of the leading digital media entertainment groups in Southeast Asia. The company's brand is well-known in Indonesia. With an efficient end-to-end operating model as its core, the company covers content conceptualization, distribution, IP creation, and monetization throughout the entire lifecycle, forming a diverse strength that serves as the cornerstone for the company's growth and differentiation. MNC Digital is a major player in content and IP production, achieving continuous success with multiple blockbuster IPs and well-known cross-screen brands. According to MPA data, as of December 31, 2025, the company owns the largest private content library in Southeast Asia, with its digital content library exceeding 300,000 hours. According to MPA data, in terms of production volume, the company is also one of the largest short drama production companies in Southeast Asia. The company provides comprehensive IP lifecycle management services, covering social media interaction, brand partnerships, and music distribution, continuously unlocking and maximizing the value of IPs. According to MPA, this comprehensive model is built on the company's ownership of one of the largest artist networks in Southeast Asia, consisting of over 400 exclusive artists and over 200 content creators as of December 31, 2025. MNC Digital produces content through MNC Pictures, Asia Media Productions, Star Pro, MNC Animation, MNC Channels, Vision Pictures, and Cameo Project, each of which (comprising subsidiaries and business units of the group) specializes in unique types and formats, supporting the production of series, films, variety shows, animations, and native short dramas for mobile devices. The company also owns and operates Movieland, an end-to-end production studio covering approximately 21 hectares, with multiple outdoor shooting areas, extensive outdoor filming locations, and comprehensive support facilities. The content and IP management focus on asset curation, rights management, and artist relations management. As of December 31, 2025, the company manages over 400 exclusive artists and over 200 content creators through PTSMN and Star Hits. As of December 31, 2025, the company owns over 2,850 songs and exclusively manages over 750 songs. The company operates RCTI+ (according to MPA data, based on 2025 revenue, RCTI+ is Indonesia's leading high-end AVOD platform, focusing on localized digital entertainment). In addition, the company also operates the SVOD platform Vision+. As of December 31, 2025, the company's two major platforms recorded approximately 110 million monthly active users. The company expands its coverage through linear television and licenses content to strategic partners and platforms, reaching over 60 countries and jurisdictions. The company further monetizes proprietary character IPs through a robust merchandise sales ecosystem, with flagship animated character Kiko leading the way. The company's business footprint extends to major mainstream social media platforms, with over 625 million subscribers and followers and a cumulative 147 billion views as of December 31, 2025. Financial Information Revenue The company recorded revenue of approximately 29,055.91 billion Indonesian Rupiah in the financial year 2023, 32,387.8 billion Indonesian Rupiah in 2024, and 38,327.96 billion Indonesian Rupiah in 2025. Net Profit The company recorded annual net profits of approximately 1,695.44 billion Indonesian Rupiah in 2023, 3,955.84 billion Indonesian Rupiah in 2024, and 9,669.86 billion Indonesian Rupiah in 2025. Net Profit Margin The company's net profit margins were 5.8% in 2023, 12.2% in 2024, and 25.2% in 2025. Industry Overview Driven by digital applications, local content demand, and multi-channel monetization, the Indonesian digital media entertainment market is expected to grow from US$25 billion in 2020 to US$53 billion in 2030 (a compound annual growth rate of 7.7%). The market is undergoing a structural transformation, with linear television in a long-term decline trend, while digital native formats are taking up more time, attention, and revenue. The market is built around three interrelated pillars: (1) digital content distribution, (2) digital content marketing, and (3) diverse artist and IP management. Digital content distribution accounts for three-quarters of total revenue, while content marketing (compound annual growth rate of 12.8%) and artist and IP management (compound annual growth rate of 13.1%) are growing at a faster pace from a lower base. Digital content distribution monetizes content through online video, FTA, pay-TV, and international licensing. The market grew from US$21 billion in 2020 to US$29 billion in 2025, and is expected to reach US$39 billion by 2030 (a compound annual growth rate of 6.3%), shifting from linear television to digital formats. Digital content marketing encompasses revenue generated from digital advertising, creator-led events, and platform revenue sharing. This segment of the market grew from US$222 million in 2020 to US$521 million in 2025, and is projected to reach US$743 million by 2030 (a compound annual growth rate of 12.8%), driven by platform revenue sharing and MCN advertising. The market is dominated by digital platform revenue sharing: reaching US$475 million in 2025 (accounting for 91% of this segment of the market), and is projected to reach US$663 million by 2030, generated through revenue sharing between creators/content owners and platforms. Diverse artist and IP management covers monetization revenue from artist commercialization, endorsements, concerts, music distribution, and IP merchandising. Advertising activities, endorsements, and concerts contribute approximately 98% of total revenue; music royalties and merchandising account for 2%. Total revenue is estimated to reach US$684 million by 2030. Artist commercialization is driving growth, with endorsement revenue expected to grow from US$263 million in 2022 to US$670 million in 2030. Music monetization is projected to reach US$150 million in 2030; while IP merchandising, although small in scale, holds significant potential. Key growth drivers include: audience deep emotional attachment to local celebrities, cross-platform fan engagement extending the IP lifecycle, and increasing disposable income among urban youths (aged 16 to 30, accounting for 24% of the population). Board of Directors and Management Information In accordance with applicable Indonesian laws and regulations, the Board of Directors is designated as the legal entity of the company, authorized and fully responsible for managing the company in accordance with its objectives and purposes. As per regulations, the Board of Directors also represents the company both inside and outside the court. Directors can only be appointed or removed by the shareholders' meeting. The Board of Directors consists of six directors. Equity Structure The ultimate controlling shareholder of the company is PT MNC Asia Holding Tbk, a diversified Indonesian corporation established in 1989, whose shares have been listed on the Indonesia Stock Exchange since November 24, 1997 (stock code: BHIT.JK). As of April 20, 2026, approximately 71.67% of the company's share capital is held by MNC Media, while PT Media Nusantara Citra Tbk is held by PT Global Mediacom Tbk with about 52.67% equity, and PT Global Mediacom Tbk is held by PT MNC Asia Holding Tbk with about 45.99% equity. Intermediary Team Exclusive Sponsor: China International Finance Hong Kong Securities Limited Legal Advisor for the Company: For Hong Kong and US law: Latham & Watkins; for Indonesian law: Hiswara Bunjamin & Tandjung Legal Advisor for the Exclusive Sponsor: For Hong Kong and US law: Baker McKenzie; for Indonesian law: summA Law Firm Auditor: KAP Purwanto Susanti and Surja (member firm of Ernst & Young Global Limited in Indonesia) Joint Reporting Accountants: Ernst & Young; KAP Purwanto Susanti and Surja (member firm of Ernst & Young Global Limited in Indonesia) Industry Consultant: Media Partners Asia, Ltd. Compliance Advisor: Hongbo Capital Limited