STAR CM Holdings Limited reported interim unaudited results for the six months ended 30 June 2026, showing a sharp contraction in top-line and profitability metrics.

Financial highlights • Revenue declined 22.20% year on year to RMB 45.90 million. • Gross profit fell 53.60% to RMB 10.24 million; gross margin slipped to 22.27% from 37.24%. • Loss before tax expanded to RMB 39.65 million versus RMB 10.40 million a year earlier. • Net loss attributable to shareholders widened 267.60% to RMB 40.48 million; basic and diluted loss per share increased to RMB 0.10 from RMB 0.03. • Cash and cash equivalents rose to RMB 454.61 million (31 Dec 2025: RMB 427.39 million). • Net assets stood at RMB 2.46 billion.

Segment performance • Variety program IP production, operation and licensing revenue dropped 77.21% to RMB 3.10 million, turning a gross profit of RMB 3.20 million in 1H 2025 into a gross loss of RMB 6.39 million; segment gross margin swung to –206.5%. • Film & drama series IP revenue decreased 29.87% to RMB 17.85 million; gross margin contracted to 47.2% (1H 2025: 59.8%). • Music IP revenue slipped 26.66% to RMB 4.66 million, but margin improved to 70.2% due to a higher share of one-off catalogue licensing. • Other IP-related business revenue grew 49.26% to RMB 20.29 million; gross margin climbed to 24.1% from 4.4%, driven by more offline events for managed artists.

Cost and expense dynamics • Cost of sales eased 3.80% to RMB 35.66 million, lagging the revenue decline. • Administrative expenses were broadly flat at RMB 22.20 million. • Changes in fair value of financial assets swung from a RMB 12.88 million gain to a RMB 13.40 million loss, reflecting share-price volatility of listed equity holdings. • Net impairment losses on trade receivables totalled RMB 2.79 million (1H 2025: RMB 1.40 million reversal).

Balance sheet and liquidity • Total assets were RMB 2.68 billion; cash covered 18.38% of total current assets. • Gearing ratio remained negligible at 0.04%. • Capital expenditure lifted property, plant and equipment to RMB 217.96 million (31 Dec 2025: RMB 179.48 million), mainly for the Songjiang Star production base. • Trade receivables declined 58.83% to RMB 28.67 million following collections; trade payables were steady at RMB 72.63 million.

Corporate actions and subsequent events • In June 2026 the company agreed to swap its 17.59% stake in associate Shanghai Binqiao for full ownership of Shanghai Xingkongshui’an in a transaction valued at approximately RMB 193.46 million; completion occurred on 12 August 2026, removing Shanghai Binqiao from STAR CM’s associate portfolio. • During the period the company repurchased 486,600 shares for HKD 0.38 million, held as treasury stock. • No interim dividend was declared.

Management outlook The board cited a challenging operating environment and a reduced variety-program pipeline for the weaker first-half performance. Strategic priorities include expanding IP libraries, integrating AI into content creation, widening distribution channels and assessing acquisitions that complement digital content and international reach.