Emperor Culture Group (00491) released its unaudited results for the six months ended 31 December 2025.

Financial Highlights • Revenue rose 9.6 % year-on-year to HK$266.38 million, driven mainly by box-office takings of HK$215.54 million, which represented 80.9 % of total turnover. • Gross profit advanced 6.1 % to HK$156.18 million. • Net loss narrowed to HK$47.62 million from HK$56.82 million, trimming the loss by 16.2 %. Basic loss per share was HK$0.015 versus HK$0.018 a year earlier. • No interim dividend was declared.

Segment & Geographic Mix • Cinema operations remained the sole revenue contributor; income from film investment was nil. • Mainland China revenue climbed 25.1 % to HK$112.70 million, lifting its share of group sales to 42.3 % (1H FY24: 37.0 %). • Hong Kong contributed HK$140.05 million, largely stable year-on-year, while Macau generated HK$13.62 million.

Cost & Efficiency Measures • Selling, marketing and other cinema operating expenses fell 4.0 % to HK$146.46 million. • General and administrative expenses slipped 7.8 % to HK$29.05 million. • Finance costs decreased 21.0 % to HK$42.26 million following lower interest on borrowings and lease liabilities. • Net gains related to lease modifications and derecognition were HK$7.64 million (1H FY24: HK$31.92 million).

Balance Sheet & Liquidity • Cash and cash equivalents stood at HK$65.72 million at end-December, up from HK$49.82 million six months earlier. • Total borrowings reached HK$1.12 billion, comprising a HK$1.05 billion related-party loan (maturing 30 June 2027) and HK$70.26 million due to non-controlling interests; there were no bank loans outstanding. • Gearing ratio (total borrowings/total assets) increased to 201.8 % (30 June 2025: 182.6 %). • Net current liabilities widened slightly to HK$232.43 million. Management cited ongoing support from the related-party loan facility and internal cash generation as key liquidity sources.

Operational Update • The cinema network comprised 24 locations with 172 screens and about 25,000 seats across Mainland China, Hong Kong and Macau. • Emperor Cinemas’ iSQUARE (Tsim Sha Tsui) site received the “2024-2025 IMAX Excellence Awards – Best Performing IMAX Theatre”.

Outlook Management anticipates long-term opportunities from increasing Mainland–Hong Kong film collaborations and plans to expand the cinema footprint prudently, with a new site secured at Taikoo Place Beijing slated to open in 2027. Operational efficiency and brand leverage remain focal points amid subdued consumer sentiment.