China Ruyi Delivers RMB 1.18 Billion 1H26 Revenue, Profit Slips 32% amid Pivot to AI Content and Gaming

Bulletin Express
Yesterday

China Ruyi Holdings Limited reported interim revenue of RMB 1.18 billion for the six months ended 30 June 2026, a 46.37% year-on-year decline from RMB 2.21 billion. Profit attributable to equity holders fell 32.24% to RMB 837.41 million, while basic earnings per share dropped to RMB 0.05 from RMB 0.08.

Adjusted net profit, which strips out share-based compensation and finance costs linked to convertible bonds, decreased to RMB 951.82 million from RMB 1.30 billion. Group net margin nevertheless held at 70.77%, supported by a RMB 774.38 million gain on financial assets at fair value through profit or loss.

Segment performance • Content Production: Revenue contracted to RMB 327.54 million (-42.5%), reflecting a softer mainland film box-office market that fell 40.6% to RMB 17.35 billion. Key releases included “Pegasus 3” (RMB 4.42 billion domestic box office) and “Once Upon A Time in the Middle East” (RMB 1.70 billion). • Online Streaming & Gaming: Segment revenue reached RMB 838.99 million, dominated by Pumpkin Films’ member-exclusive titles and Jingxiu Games’ ongoing contribution from “Red Alert Online”. AI-generated short dramas “Strange, Ah” and “The Pirate Queen” are slated for 2H26 launch. • Other Businesses: Accessories sales contributed RMB 16.55 million.

Balance sheet and liquidity Cash and cash equivalents stood at RMB 5.44 billion, down from RMB 6.29 billion at year-end after RMB 14.69 billion of new investments in listed equities, unlisted funds and private companies. Borrowings contracted to RMB 463.50 million, yet total gearing rose to 18.2% (31 Dec 2025: 9.5%) following issuance of HK$ 2.57 billion zero-coupon convertible bonds due 2027. Net equity edged up to RMB 24.10 billion.

Capital actions • Convertible bonds: February 2026 issue raised net HK$ 2.55 billion, earmarked mainly for debt repayment, gaming operations and drama production. HK$ 50 million (1.94% of principal) was repurchased in May. • Share buy-back: 254.96 million shares repurchased in May–June for HK$ 366.70 million and pending cancellation.

Outlook Management maintains a medium- to long-term strategy centred on “head projects + diversified slate” in film, accelerated AI-enabled content production and an expanded global games pipeline featuring licences from EA, Ubisoft and The Pokémon Company.

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