Maoyan Entertainment (1896) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 declined 27.6% year-over-year to RMB1,789.8 million, with gross profit dropping to RMB560.1 million and a net loss of RMB28.7 million, compared to a net profit of RMB178.5 million in the prior year period.

• Adjusted EBITDA fell sharply to RMB29.5 million from RMB333.0 million, and adjusted net profit was RMB21.4 million, down from RMB235.0 million year-over-year.

• The movie market faced significant headwinds, with nationwide box office and moviegoer numbers down 40.6% and 34.3% respectively, while the offline performance market grew 9.41% year-over-year.

• The company maintained industry leadership in film promotion, distribution, and ticketing, achieving historic highs in lead distribution and box office coverage, and continued to expand its IP and offline performance businesses.

• Online movie ticketing and IP business advanced with new partnerships, product launches, and international expansion.

Financial highlights

• Revenue: RMB1,789.8 million, down from RMB2,472.2 million year-over-year.

• Gross profit: RMB560.1 million (31.3% margin), down from RMB936.5 million (37.9% margin).

• Net loss: RMB28.7 million, compared to net profit of RMB178.5 million in the prior year.

• Adjusted EBITDA: RMB29.5 million, down from RMB333.0 million.

• Adjusted net profit: RMB21.4 million, down from RMB235.0 million.

• Cost of revenue decreased 19.9% to RMB1,229.7 million.

• Selling and marketing expenses fell 9.3% to RMB408.0 million; general and administrative expenses decreased 6.8% to RMB136.6 million.

• Net impairment losses on financial assets rose to RMB81.9 million from RMB48.1 million.

• Other income was RMB27.5 million, mainly from government grants.

• Basic and diluted loss per share were RMB0.02, compared to earnings per share of RMB0.16 last year.

Outlook and guidance

• Management remains optimistic about the film market's steady development, citing a strong summer box office and a robust pipeline of high-quality films.

• The company will continue to invest in offline performance, deepen IP operations, and explore AI applications in film and television.