CMGE (Stock Code: 00302) released its unaudited interim report for the six months ended 30 June 2026.

• Revenue declined 53.5% year-on-year to RMB355.12 million, reflecting a lighter launch schedule in Mainland China, the removal of several legacy titles, and tapering sales from ageing franchises.

• Despite the top-line contraction, the net loss narrowed sharply to RMB89.74 million from RMB644.25 million a year earlier, aided by strict cost controls:  – Selling and distribution expenses fell 91.8% to RMB30.52 million, as marketing outlays were curbed.  – Administrative expenses dropped 58.1% to RMB35.99 million after headcount rationalisation.  – Research and development costs decreased 75.5% to RMB22.96 million.  – Write-offs of prepayments plunged to RMB1.22 million from RMB189.49 million; no goodwill impairment was recorded (1H 2025: RMB11.52 million).

• Gross profit was RMB67.79 million, down 73.8%; gross margin slipped to 19.1% from 33.9% as channel and IP costs absorbed a larger share of sales.

• By segment, game publishing contributed 79.0% of revenue (RMB280.53 million), game development 14.5% (RMB51.53 million), and IP licensing 6.5% (RMB23.07 million). Overseas markets delivered RMB77.68 million in sales.

• Balance-sheet snapshot:  – Total assets RMB3.25 billion; total liabilities RMB938.05 million; equity RMB2.31 billion.  – Net current liabilities stood at RMB117.49 million; current borrowings totalled RMB501.28 million. The auditor highlighted a material uncertainty over going-concern status, citing negative operating cash flow and short-term debt concentration. Management is negotiating loan renewals and tightening spending to address liquidity.

• Fund-raising: The company issued 122.95 million new shares on 28 April 2026, raising HK$29.5 million (net) to support game-publishing costs.

• Operational highlights: CMGE launched five new titles, including regional releases of “New Romance of the Three Kingdoms: The Legend of Cao Cao” and “Sangokushi: Gisaicai,” and two “legendary” genre games in China. It also unveiled GamePartner.AI, an AI-driven game-development platform targeting casual titles for overseas markets.

• Pipeline: Planned domestic launches in 2H 2026 include “Code: Zhetian,” “Wulin Xiadou,” “Code: Tianqiong,” and “Code: New Legend.” Overseas releases will feature “Monster Loop: Beast God Reincarnation,” “Soul Land: Shrek Academy,” and “Pocket Conquer.”

No interim dividend was declared. The board remains focused on expanding the game portfolio, monetising IP assets—particularly the “Legend of Sword and Fairy” franchise—and improving cash generation to strengthen the balance sheet.