Star CM (6698) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB45.9m vs RMB59.0m; gross profit was RMB10.2m vs RMB22.0m, and net loss widened to RMB40.8m from RMB11.1m.

• Lower variety-program production and a RMB13.4m fair-value loss on financial assets were key drivers of the larger loss.

Financial highlights

• Revenue fell to RMB45.9m from RMB59.0m; gross profit declined to RMB10.2m from RMB22.0m.

• Loss before tax was RMB39.6m vs RMB10.4m; net loss was RMB40.8m vs RMB11.1m.

• Basic and diluted loss per share was RMB0.10 vs RMB0.03.

• Fair-value changes were a RMB13.4m loss vs a RMB12.9m gain; impairment losses on trade receivables were RMB2.8m vs a RMB1.4m reversal.

• Net cash from operating activities was RMB34.8m vs RMB27.4m; cash and cash equivalents ended at RMB454.6m.

Outlook and guidance

• Regular episodes of The Silk Road Archaeological Quest are expected to begin recording in H2 2026; short-form content, including short dramas, comic series and interactive film-games, is also planned for H2.

• Development priorities include expanding music and film IP libraries, strengthening content production and exploring AI integration with content assets.

• Interactive film-game and AI-powered comic projects are in development with partners; initial outcomes depend on development progress.

• Distribution expansion, global audience reach, offline IP experiences, talent recruitment and evaluation of complementary acquisitions and joint ventures remain priorities.

• Remaining Global Offering proceeds are expected to be fully utilized by December 2027, subject to market developments and unforeseen circumstances.