Star CM (6698) H1 2025 earnings summary

Executive summary

• H1 revenue fell 17.0% YoY to RMB59.0m; gross profit rose to RMB22.0m from RMB6.6m and net loss narrowed to RMB11.1m from RMB56.0m.

• Improved results reflected variety-program gross-profit turnaround, lower administrative expenses, higher film IP licensing revenue and fair-value gains.

Financial highlights

• Revenue was RMB59.0m versus RMB71.1m YoY; gross profit was RMB22.0m versus RMB6.6m, and gross margin was 37.3% versus 9.3%.

• Net loss narrowed to RMB11.1m from RMB56.0m; loss per share was RMB0.03 versus RMB0.14.

• Administrative expenses declined 48.9% to RMB21.7m, mainly on lower professional fees, depreciation and R&D expenses.

• Fair-value financial asset changes swung to a RMB12.9m gain from a RMB5.6m loss, mainly reflecting listed-investment share-price fluctuations.

• Operating cash flow was RMB27.4m generated versus RMB28.3m used in H1 2024.

Outlook and guidance

• H2 plans include airing episodes of Sing! Asia and The Top Racer, plus a small-scale AI music show and a mid-sized dance show.

• Priorities include expanding IP production and licensing, short-drama adaptations from the film library, wider distribution and overseas reach, talent recruitment and selective M&A.

• Remaining Global Offering proceeds of HK$74.8m are expected to be fully utilized by December 2027, revised from December 2025.