In 2025 Q2, JYP Entertainment achieved record-breaking quarterly revenue and operating profit, setting a new record for its highest quarterly performance. Revenue surged to KRW 215.8 billion, a 125.5% increase year-over-year, and operating profit increased to KRW 52.9 billion, increased by 466.3% year-over-year. Due to a low base effect from absence of major artist activities in 2024 Q2, net income also increased by 2,734.4% year-over-year, reaching KRW 36.3 billion.

JYP Entertainment recorded the highest management revenue, as major artists solidify their status as global top-tier artists, especially with the largest K-POP world tour of Stray Kids. In the Q2, concert revenue reached a new record of KRW 62 billion, increased by 342.3% year-over-year. It reflects 16 shows from DAY6 world tour and 23 stadium size concerts from Stray Kids - including 6 times in LATAM, 4 times in Japan, and 13 times in North America as well as an estimation of overage profit share for North America concerts. 

As the global awareness and mass power of TWICE, Stray Kids, and NMIXX expands, collaborations with global brands have become more active, leading to a record-high advertisement revenue of KRW 11.3 billion, increased by 22.4% year-over-year. Appearances revenue also reached its highest of KRW 9.7 billion, surged by 22.1% year-over-year, with the increased number of shows and attendances from NMIXX's 11 fan concerts held in Australia and Asian regions including Taiwan, Hong Kong, and Japan. NMIXX has been building their global core fandom with fan concerts since last October, and they plan to host their first concert in November of this year.

MD revenue also reached an all-time quarterly high of KRW 66.9 billion, a 355.9% increase year-over-year, driven by major artist tours and global IP licensing collaboration. Stray Kids large-scale concerts MD and fan meeting online MD as well as DAY6 concert MD were reflected. Moreover, global IP licensing collaborations were reflected such as Stray Kids character ‘SKZOO’ Tamagotchi and TWICE's official character ‘LOVELYS’ and Sanrio collaboration for Japanese debut 8th year anniversary. Strong MD sales in Japan contributed KRW 21 billion revenue, a 155.9% year-over-year increase. 

Physical album sales grew by 99.6% year-over-year to KRW 27.1 billion, with new releases from ITZY, NEXZ, and KickFlip, along with Stray Kids' Japanese album. Streaming revenue, however, decreased by 10.2% year-over-year to KRW 11.5 billion, due to continuous impact from one-off recognition of Chinese streaming revenue in 2024 Q4.

Moreover, others segment recorded its highest sales of KRW 27.4 billion, increased by 16.5% year-over-year, with the growth of domestic fan club revenue. 

Despite major artist’s contract renewal, profitability increased from the leverage effect of record-high revenue, demonstrating a successful monetization strategy based on the core fandom. Under COGS, artist fee increased by 209.4% year-over-year to KRW 64.3 billion, driven by artist contract renewal and expansion of management segment sales. Content production costs rose by 65.4% year-over-year to KRW 27 billion due to domestic concert production fee and artist album releases. Despite the rise in COGS, the leverage from high revenue and economies of scale led to a 7.0%pt increase in GPM, reaching 41.8%.

JYP Entertainment achieved the highest quarterly operating profit of KRW 52.9 billion, and operating profit margin reached 24.5%, improved by 14.8%pt year-over-year. Overall margin was enhanced by the highest quarterly revenue and the improvement of Blue Garage profitability. 

Now, I will present major artists' activities and investment highlights. 

JYP Entertainment will continue to strengthen major artists’ global presence and solidify the core fandom of early-stage artists, while enhancing core business capabilities to achieve mid-to long-term growth. 

DAY6 successfully completed their largest third world tour, which included 45 concerts across 23 regions. They are preparing for their 10th year anniversary world tour from August, becoming the first Korean band to perform at the Goyang Stadium. A new regular album release is also planned in September, continuing to solidify their position as an iconic K-POP band. 

TWICE started their sixth world tour in July at the Inspire Arena in Incheon. The tour features a 360-degree stage setup for all venues, breaking down the barrier between the stage and the audience. The tour will be mainly in Asia in 2025, with plans to add more regions including North America and Europe in 2026. Their fourth regular album, which was released in July, entered the ‘Billboard 200’ for the seventh consecutive times, setting a new record for the most top 10 entries on the Billboard 200 by a K-POP girl group. Furthermore, the soundtracks ‘Strategy’ and ‘TAKEDOWN’ from 'KPop Demon Hunters' both entered the Billboard Hot 100, recording their career-high ranking. Chaeyoung is planning to release a new solo album in September to diversify activities, and collaboration with global artists keeps strengthening their position as a top-tier girl group. They recently performed as a headliner at ‘Lollapalooza Chicago 2025,’ and in August, they are planning to perform at the Tencent International Music Awards (TIMA) ceremony. 

Stray Kids successfully completed their largest-ever K-POP world tour with 54 shows across 34 regions. Beginning the tour from last year, they accomplished multiple record breaking achievements including the first and largest performances as the K-POP artist at 13 of the 27 stadiums across North America, Europe, and LATAM, opening up a new chapter in K-POP history. They plan to release their fourth regular album on August 22, with additional album release and encore concerts in Korea in the H2.

After releasing a mini album in June, ITZY is planning official fan meetings in Korea and Japan in September and October. They will also perform at the TIMA awards in August and on the music competition series 'KPOPPED' on Apple TV+. In China, they are actively engaging with their global fanbase through various activities, including digital photo cards with Tencent Music Entertainment(TME).

NMIXX successfully completed their second fan concert, which included 21 shows across 12 regions. They are now preparing for their first concert in November, raising their fans’ expectations.

KickFlip, who debuted this year, released a mini album in May and has another mini album planned for September. They are building a global core fandom by performing at major festivals like ‘Lollapalooza Chicago 2025’ and ‘Summer Sonic 2025’ in Tokyo, Osaka, and Bangkok. They are also scheduled to perform at the TIMA awards in August.

NiziU is planning to host their largest ever tour in Japan from September as well as new album releases in the H2. NEXZ, after their Japanese mini album in July, is hosting 18 Japanese live concerts and preparing a new global album in October. 

Members of Chinese boy group BOY STORY, who are managed under a JV with TME - Beijing Shinsung Entertainment, are currently appearing on Mnet's K-POP boy group survival audition program 'Boys 2 Planet,' attracting attention from viewers. Additionally, CIIU is set for the official launch with the first debut stage at the Tencent International Music Awards(TIMA) and Tencent Music Entertainment Awards(TMEA) in August. Furthermore, Yao Chen, from Fanling Culture Media, has also been performing in various large music festivals, while commencing his career as an actor as well. 

Global girl group VCHA has rebranded as GIRLSET and is preparing for another step up with a comeback in late August with four members: Lexi, Camila, Kendall, and Savanna. In 2026, we aim to enter the Latin American market through projects like LATAM localization and will continue to strengthen our global business capabilities by reinforcing and diversifying collaborations with global top-tier partners.

Furthermore, JYP Entertainment is advancing global business capabilities for mid-to-long-term growth by solidifying a multi-label system to develop key creative talent, diversifying artist lineup with new projects in 2026, and expanding business through new technology like AI artists.

We will continuously enhance our global concert business capabilities by strengthening partnership with Live Nation. We will continue our creative innovations, such as TWICE's 360-degree performance as the first of K-POP artists. We are also aiming to implement global strategies tailored to key markets. 

For our MD business, we plan to expand major partnership and IP licensing business with global companies particularly in the regions, such as North America and China. We have set up a new MD function to strategically plan a variety of products to meet needs of fandom such as artist character MD. 

We also plan to optimize sales strategies and distribution channels, including shifting several pre-ordered products to all-time sales. The entire MD process—from planning, production to distribution, sales—and offline pop-up events are being optimized for global business.

In April, our e-Commerce platform, which was separately operated as JYP SHOP, was internalized and integrated within FANS as FANS SHOP. Through this integration of community and e-Commerce functions, we expect synergy effects such as increasing accessibility for community users to purchase products and activating the community for e-Commerce users. In addition, we plan to provide immersive fan experiences by offering various functions step by step to satisfy the needs of global fans.

By internalizing JYP SHOP into FANS SHOP, we expect to reduce commission fees to the third party agencies. We also plan to improve profitability by optimizing the overall supply chain efficiency, including inventory management and logistics. In the Q3, we will launch a paid membership subscription business model to provide more valuable digital benefits to global fans and enhance their fandom experience.

JYP Entertainment will strive for sustainable growth by securing mid-to-long-term growth drivers in these dynamic market environments. While the industry album sales has decreased overall, we plan to create high value added albums by diversifying categories, such as those linked to artist character IPs. In August, we are preparing to launch a plush doll album utilizing Stray Kids' character ‘SKZOO.’ In the future, we will continue to seek opportunities for additional sales growth by releasing various high value-added albums highlighting characteristics of each artist.

As mentioned earlier, for MD, we aim to enhance global partnerships in key markets such as North America and China, and potential markets where we can capture new opportunities through the world tour. We are enhancing our collaboration with TME in China, which includes launching ITZY's digital star cards on QQ Music in July, and preparing the launch of an official affiliated store between FANS SHOP and TME in the H2.

FANS platform plans to launch a paid subscription-based digital membership in the H2 of the year, offering various digital benefits, including exclusive live content and access to MD pre-sales. Live features will only be available to paid subscription members, and we will focus on cost efficiency through technological optimization. By introducing the subscription membership, we aim to enhance the platform's value for the fandom and will continue to provide meaningful digital benefits to fans to maximize global fan experiences.

Next is the major albums and performances scheduled for 2025. The album and performance schedules disclosed in this slide are based on information currently released through official social accounts and the media and are subject to change with future announcements.