YH Entertainment (2306) investor relations material

Executive summary

• H1 2026 revenue rose 23.6% YoY to RMB511.9m; profit for the period fell 23.1% to RMB47.0m, primarily as net other gains of RMB12.7m shifted to losses of RMB3.2m.

• Adjusted net profit increased 3.2% to RMB62.9m despite lower reported profit and gross margin.

• Strategy is shifting toward an integrated AI + IP ecosystem while developing artist management, music IP, IP commercialization and pop toys.

Financial highlights

• Revenue was RMB511.9m, up 23.6% YoY; cost of revenue increased 28.1% to RMB390.5m.

• Gross profit rose 10.9% to RMB121.4m, while gross margin declined to 23.7% from 26.4%.

• Operating profit fell 10.6% to RMB58.9m; profit before tax declined 12.5% to RMB65.8m.

• Profit for the period fell 23.1% to RMB47.0m; adjusted net profit rose 3.2% to RMB62.9m.

Outlook and guidance

• Advance an AI + IP ecosystem, explore AI applications in cultural content and entertainment, and strengthen existing content and IP capabilities.

• Artist management plans targeted trainee development, quality-focused portfolio growth and stronger artist operations and promotion.

• Expand music IP through new releases and copyright acquisitions; develop more pop toy IPs and broaden domestic and international distribution.

• IP commercialization plans channel diversification and exploration of AI-powered performance and service robots for cultural consumption and offline experiences.