Shaw Brothers Holdings Limited reported an unaudited net loss attributable to shareholders of RMB 9.33 million for the six months ended 30 June 2026, reversing a profit of RMB 7.04 million a year earlier. The swing reflected a sharp fall in revenue and a spike in one-off expenses linked to a proposed acquisition.

Revenue collapsed 82.6% year on year to RMB 18.46 million, driven by:

• Films, drama and non-drama income sliding 87.5% to RMB 11.89 million, as only one co-produced drama (“Themis”) was released during the period. • Artiste and event management revenue dropping 40.4% to RMB 6.58 million amid fewer concerts.

Segment profitability mirrored the top-line contraction: • Films, drama and non-drama profit fell 92.1% to RMB 0.57 million; margin narrowed to 4.8%. • Artiste and event management profit declined 49.1% to RMB 2.00 million; margin softened to 30.4%. Overall segment profit retreated 76.9% to RMB 2.57 million.

Cost of sales decreased 85.3% to RMB 11.68 million, partially offsetting revenue weakness. Administrative expenses edged up 2.5% to RMB 12.06 million, reflecting higher depreciation and office costs after a 2025 relocation, while staff costs eased on a lower headcount. Other expenses rose to RMB 7.39 million, entirely comprising legal and professional fees related to the proposed RMB 4.58 billion share-for-stock acquisition of CMC Moon Holdings announced in January 2026.

Finance costs increased 22.5% to RMB 0.20 million. Income tax expense dropped to RMB 0.02 million, consistent with the reduced earnings base.

Cash resources remained solid. Net cash (cash minus borrowings) stood at RMB 247.05 million at 30 June 2026, down from RMB 262.39 million at year-end 2025 after repayment of a HK$5.00 million (RMB 4.38 million) bank loan. The gearing ratio was nil versus 1.01% six months earlier, and the current ratio was stable at 6.8x.

Total assets slipped 5.9% to RMB 418.05 million, while equity attributable to shareholders eased 5.2% to RMB 379.00 million, translating into net asset value of RMB 0.267 per share (31 December 2025: RMB 0.282).

The board declared no interim dividend.

Operational highlights include completion of the 22-episode family drama “Behind the Queens,” slated for Tencent Video release in 2026, and continued participation in mainland co-productions to deepen regional exposure. As at period-end, Shaw Brothers managed approximately 50 artistes and maintained film/drama projects in progress of RMB 57.81 million.

Management cited structural pressures in Hong Kong’s film industry, reduced project pipeline, and acquisition-related costs as key factors behind the interim loss. The company aims to leverage government support initiatives and cross-border collaborations to revitalise earnings and expand its content portfolio in the Greater Bay Area and broader Asia-Pacific markets.