Maoyan Entertainment (01896) has issued a warning, announcing that the group expects revenue for the first half of 2026 to be between approximately RMB 1.75 billion and RMB 1.85 billion.

This represents a decline of about 25.2% to 29.2% compared to the revenue of RMB 2.472 billion reported for the six months ended June 30, 2025 (the first half of 2025). The group anticipates a net loss attributable to owners of the company for the first half of 2026 of approximately RMB 5 million to RMB 55 million, a sharp reversal from the net profit attributable to owners of RMB 179 million recorded in the first half of 2025.

Where to start

Based on currently available information, the loss is primarily attributed to the following factors:

1. During the first half of 2026, China's total box office reached RMB 17.354 billion, a year-on-year decline of 40.6% compared to the first half of 2025. Total movie admissions were 421 million, down 34.3% year-on-year (according to Maoyan Professional Edition data). Additionally, affected by insufficient supply of top-tier films and fluctuating audience demand, the box office performance of some films in which the group participated during the reporting period fell short of expectations.

2. Following the sustained enthusiasm in the live performance market, the group has continued to increase its investment in the performance business to further expand its advantages and enhance its competitiveness.

3. Due to the current cyclical pressures facing China's film industry, some of the group's business partners are experiencing operational difficulties. The group has adopted a prudent approach and made impairment provisions for other receivables from these partners. The total impairment amount is expected to not exceed RMB 100 million. The company is actively pursuing the collection of these other receivables and has taken necessary legal measures.