Lajin Entertainment Network Group Limited reported a 69.3% year-on-year rise in first-half 2026 revenue to HK$3.63 million, driven mainly by stronger advertising income from internet content. Despite top-line growth, escalating cost of sales—up more than three-fold to HK$4.48 million—pushed the Group into a HK$0.85 million gross loss versus a HK$0.85 million gross profit a year earlier.
Administrative expenses expanded 26.1% to HK$17.47 million, reflecting higher staff and general costs. Other income shrank to HK$0.02 million from HK$1.86 million, eliminating a key profitability cushion recorded in 2025. Consequently, loss before tax deepened to HK$18.29 million (1H 2025: HK$11.14 million). Loss attributable to shareholders widened to HK$13.91 million, translating into a basic and diluted loss per share of 3.31 Hong Kong cents (1H 2025: 1.99 cents).
Segment review: • Movies, TV Programmes & Internet Contents: Revenue surged to HK$2.54 million (1H 2025: HK$0.40 million) but still posted a segment loss of HK$0.65 million. • New Media: Revenue declined 33.5% to HK$1.09 million, producing a HK$9.83 million segment loss. • Artiste Management: No revenue was recorded (1H 2025: HK$0.11 million), with the segment broadly breakeven.
Cash flow from operations registered an outflow of HK$22.57 million versus an inflow of HK$0.24 million a year earlier. Financing inflows of HK$27.92 million—primarily shareholder advances (HK$22.15 million) and minority capital contributions (HK$5.77 million)—lifted period-end cash to HK$16.57 million (31 Dec 2025: HK$8.56 million).
Total assets rose to HK$142.38 million, while total equity fell 14.7% to HK$47.25 million, leading to a gearing ratio of 131.0% (31 Dec 2025: 89.1%). Investment properties remained at HK$66.31 million. Capital commitments related to film projects stood at HK$14.31 million.
The Board declared no interim dividend. Management reiterated focus on expanding micro-short drama production, resolving outstanding property title issues linked to prior acquisitions, and rolling out its Blue Whale SaaS platform to Alipay ecosystem partners to bolster new-media revenues.