China Star Entertainment reported a HK$69.71 million loss for the six months ended 30 June 2026, a 48% year-on-year reduction from the HK$133.60 million deficit recorded in the prior-year period. Loss attributable to shareholders narrowed to HK$56.09 million, down 49% from HK$110.88 million.
Revenue fell 63% to HK$95.31 million, reflecting lower property sales and subdued film-related income. Nevertheless, gross profit margin expanded sharply to 71% (1H 2025: 30%), lifting gross profit to HK$68.13 million despite the revenue contraction.
Expense discipline underpinned the smaller loss. Administrative costs dropped 28% to HK$58.51 million, while marketing, selling and distribution expenses declined 67% to HK$11.48 million. Finance costs were broadly flat at HK$51.59 million; HK$51.33 million of interest on construction borrowing was capitalised.
Segment performance: • Film operations contributed HK$0.01 million of sales and generated a HK$0.94 million profit, aided by RMB appreciation gains. • Property development and investment sales plunged to HK$19.59 million (1H 2025: HK$133.01 million), producing a HK$72.12 million loss after a HK$16.35 million property write-down and HK$24.08 million in financing charges. • Multi-media and entertainment revenue reached HK$75.72 million; the unit swung to a HK$50.86 million profit from a HK$3.84 million loss, helped by cost reductions and growth in online knowledge-payment and property-consulting commissions.
Balance-sheet highlights show total assets of HK$4.45 billion and net current assets of HK$1.00 billion. Cash, time deposits and restricted cash stood at HK$113.89 million. Total borrowings were HK$1.99 billion, yielding a 129% gearing ratio. Major facilities include a HK$838.58 million term loan secured on Tiffany House, a HK$860.43 million construction loan for the Lake Yoho (Property C7) development, and a HK$170.00 million short-term loan.
Property portfolio: • Lake Yoho (Property C7) obtained its occupation permit in July 2026; more than 250 units have been pre-sold for over HK$1.40 billion. Revenue recognition begins in 2H 2026. • Tiffany House completed four unit sales in 1H 2026, generating HK$18.94 million. Ninety-seven units, 235 car parks and 67 motorcycle bays remain unsold.
No interim dividend was declared.
Management expects cash flow to improve in the second half as Lake Yoho presales convert to completed sales. The group plans to expand AI-enabled content production within its MCN segment while adopting market-aligned pricing to clear remaining Macau residential inventory.