Huanxi Media Group Limited (Huanxi Media) reported a sharp decline in revenue and film investment income to HK$5.70 million for the six months ended 30 June 2026, down 96.83% from HK$179.94 million a year earlier, reflecting the group’s decision to suspend new theatrical releases amid China’s sluggish box-office market.
Net loss attributable to shareholders narrowed to HK$40.08 million from HK$102.23 million, helped by lower selling, distribution and administrative expenses following cost-control measures. Loss per share improved to HK$0.01 from HK$0.03.
Cash and cash equivalents surged to HK$260.94 million (31 December 2025: HK$88.06 million) after the April placement of 727.64 million new shares at HK$0.30 each and 731.29 million warrants at HK$0.01 each, generating net proceeds of HK$225.10 million. The funds are earmarked mainly for AI-driven production capabilities (HK$100.00 million), investment in film and TV rights (HK$50.00 million) and general working capital (HK$75.10 million); HK$80.01 million had been deployed by 30 June.
A further subscription agreement signed on 19 May 2026 with Phancy International Limited is expected to raise an additional HK$200.30 million via the proposed issue of 731.29 million shares at HK$0.275 each. The long-stop date for completion has been extended to 30 September 2026.
Huanxi Media ended the period debt-free, with total equity of HK$907.60 million (31 December 2025: HK$696.56 million) and a current ratio of 1.27. Film investment funds received from external investors stood at HK$430.32 million.
Operationally, the group focused on post-production of upcoming titles including “Li Na,” “Unspoken,” “Intercross,” and “Deep in the Mountains,” while enhancing its online platform huanxi.com with a broader catalogue. Management is accelerating artificial-intelligence initiatives across script development, VFX and customised content creation to streamline production and diversify revenue.
No interim dividend was declared. Board changes during the period included the appointments of Jiang Meng as Executive Director and Song Pengliang as Independent Non-Executive Director on 18 June 2026.