Star Plus Legend Holdings reported 1H2026 revenue of RMB217.88 million, down 38.5% year-on-year, as both key segments—New Retail and IP Creation & Operation—contracted.

• Segment performance:  – New Retail delivered RMB136.55 million, a 35.2% decline, reflecting softer consumer demand and recalibrated operating pace.  – IP Creation & Operation generated RMB81.33 million, off 43.4%, mainly due to the absence of TV production income after completion of J-Style Trip 3 and ongoing production of J-Style Trip 4.

• Profitability:  – Gross profit slid 54.0% to RMB71.59 million; gross margin compressed to 32.9% from 44.0%.  – Net profit inched up 5.5% to RMB8.52 million, lifting net margin to 3.9% (1H2025: 2.3%), buoyed by a RMB35.17 million fair-value gain on financial assets.

• Cost profile:  – Cost of revenue fell 26.3% to RMB146.29 million, mirroring lower sales and zero film & TV programme amortisation this period.  – Selling and marketing expenses dropped 26.2% to RMB51.51 million; general and administrative costs rose 6.0% to RMB49.67 million, mainly on higher right-of-use depreciation.

• Balance-sheet highlights (30 Jun 2026):  – Cash and equivalents: RMB457.62 million; restricted deposits: RMB70.34 million.  – Borrowings: RMB64.50 million; gearing ratio at 0.08x; current ratio 5.5x.  – No treasury shares held; no buy-backs during the period.

• Capital moves:  – HK$222.10 million net raised in May 2024 placing; HK$324.10 million and HK$369.30 million net raised via two top-up subscriptions in 2025.  – Proceeds earmarked for concert investment, IP expansion, retail network build-out and working capital; HK$535.10 million remained unutilised at period-end.

• Share-based incentives:  – Pre-IPO plan: 6.64 million options outstanding, all held by Chairperson Ms Ma Hsin-Ting.  – Post-IPO scheme (adopted June 2023) has 80.00 million options (8.35% of share capital) available for future grants; no options granted to date.

• Dividend: No interim payout declared.

• Strategy & outlook: Management reiterated the “IP × AI” dual-engine approach—deepening celebrity IP monetisation, accelerating consumer-grade quadruped robot production with Hangzhou Yushu Technology, and rolling out “CHOUCHOU&FRIENDS” flagship stores. Target remains 1,000 robot shops and five new city-centre flagship outlets by year-end, alongside continued product launches under the MODONG Magic coffee and wellness lines.

• Governance: The Company stated full compliance with Part 2 of the CG Code during 1H2026; all Directors confirmed adherence to the Model Code for securities dealings.

Star Plus Legend closed the half year with a solid cash position and modest profitability amid a challenging consumer environment, positioning itself for the next stage of IP-driven and AI-enabled growth.