Tian Ge Interactive Holdings (TIANGE) reported a sharp turnaround for the six months to 30 June 2026, posting net profit of RMB122.79 million versus a RMB24.65 million loss a year earlier. The swing was driven chiefly by RMB136.70 million of fair-value gains on financial assets and RMB20.62 million from derivatives, which more than compensated for rising operating costs.

Revenue nearly doubled to RMB31.25 million, up 93.3% year-on-year. Core online interactive entertainment sales rose 121.1% to RMB27.68 million after the group assumed full host-management control of its “Sila Chat” platform and began recognising revenue on a gross basis. “Other” income was broadly flat at RMB3.57 million.

Cost of revenue surged 239.9% to RMB17.79 million, reflecting higher host-related expenses, and compressed gross margin to 43.1% (H1 2025: 67.6%). Selling and marketing costs climbed 35.9% to RMB15.13 million, while R&D spend fell 16.5% to RMB8.79 million following the closure of underperforming projects.

Adjusted net profit, excluding share-based payments and acquisition-related amortisation, reached RMB123.04 million, a reversal from the prior-year adjusted loss of RMB24.33 million. Net margin expanded to 392.9% from –152.4% in H1 2025.

Key operating metrics weakened: monthly active users dropped 65.5% to 19,000 and quarterly paying users fell 37.5% to 5,000, but average revenue per user surged 380.9% to RMB2,515, helped by the altered revenue model.

TIANGE’s balance sheet remained liquid with RMB341.73 million in cash and equivalents, though down from RMB427.94 million at end-2025. Financial assets at fair value through profit or loss rose 6.5% to RMB1.92 billion, while borrowings declined to RMB179.61 million, trimming the gearing ratio to 8.2% (end-2025: 9.6%).

The board declared an interim dividend of HK$0.06 per share, six times last year’s HK$0.01, payable on or around 30 September 2026 to shareholders on record as of 17 September 2026.

Management reiterated its strategy of strengthening core entertainment platforms, leveraging AI to drive efficiency, and maintaining a diversified investment portfolio, while acknowledging heightened competition and user-acquisition costs in the live-streaming sector.