G.H.Y Culture & Media Holding Co (XJB) investor relations material

Executive summary

• 6M2026 revenue fell 10% YoY to RMB162.0m; gross profit declined to RMB6.9m and net loss widened to RMB31.4m.

• A shift toward profit-sharing for proprietary IP dramas reduced upfront revenue and margins, while building potential participation in titles’ longer-term commercial success.

• PRC affiliated entities contributed 99.1% of revenue and RMB20.7m of the period loss.

Financial highlights

• Revenue declined RMB17.8m from RMB179.8m in 6M2025; gross profit fell from RMB42.4m and gross margin contracted to 4.3% from 23.6%.

• Net loss widened from RMB5.2m; loss before tax was RMB36.5m versus RMB4.0m, partly offset by a RMB5.1m income tax credit.

• Selling and distribution expenses rose 40% to RMB19.1m, mainly due to drama promotion and advertising; administrative expenses increased to RMB27.6m from RMB25.5m.

• Other expenses fell to RMB4.5m from RMB14.3m, largely reflecting foreign-exchange movements; finance costs rose 40% to RMB3.2m on higher borrowing and lease interest.

Outlook and guidance

• Priorities include developing proprietary IP and original content, monetising titles through streaming, advertising, licensing, theatrical releases and related activities, and evaluating a pipeline of drama and film projects.

• Two AI teams are developing production-workflow tools and original generative-AI dramas; intended benefits include improved productivity, lower production costs and shorter development cycles.

• Short-form dramas, microdramas and AI-generated dramas are targeted growth opportunities; concert projects will be pursued as opportunities arise.

• Plans also include disciplined cost management, operational efficiency and using Asian Screen Institute to support the creative talent pipeline.