Forgame Holdings Limited reported interim results for the six months ended 30 June 2026, showing a sharp revenue contraction but a narrower bottom-line loss as cost controls partially offset market headwinds.

Revenue dropped 34.9 % year-on-year to RMB 50.75 million, driven by weaker sales in the Electronic Device and Semiconductor business, which fell 38.1 % to RMB 44.88 million. Game revenue slipped 7.9 % to RMB 5.09 million as flagship titles “Fan Ren Xiu Zhen 2” and “Zui Xi You” matured. The newly launched Fund Management arm contributed RMB 0.77 million.

Gross profit more than doubled to RMB 4.86 million, lifting gross margin to 9.6 % from 2.5 %, reflecting a steeper decline in cost of revenue (-39.7 % to RMB 45.89 million). Administrative expenses rose 40.8 % to RMB 19.64 million, mainly on higher inventory allowances, while R&D spending contracted 36.2 % to RMB 7.57 million as the company tightened game-development costs.

Forgame’s period loss attributable to shareholders narrowed 21.2 % to RMB 16.49 million. Reported EBITDA was a negative RMB 12.24 million compared with a negative RMB 5.26 million a year earlier, while adjusted EBITDA widened to a loss of RMB 22.44 million (1H25: loss of RMB 9.89 million) after excluding investment-related items and non-recurring events.

Total assets slipped 1.8 % to RMB 443.20 million. Equity fell 5.4 % to RMB 398.68 million, reflecting the interim loss and currency translation effects. Cash and cash equivalents were largely stable at RMB 95.60 million; the group remains debt-free, leaving the gearing ratio at 0 %. Net current assets stood at RMB 298.32 million.

Capital expenditure was modest at RMB 0.08 million, with no new pledges or major investments recorded. Management cited subdued domestic consumption, intensified competition and AI-driven cost pressures as key challenges, but plans to prioritise cash preservation, maintain stable operations in gaming and electronics trading, and cautiously explore new opportunities in technology and investment domains during the second half of 2026.