Litian Pictures reported FY26 revenue of RMB 37.64 million, down 71.7% from RMB 132.81 million booked in the preceding 18-month period. The fall mainly reflected a sharp slowdown in licensing income from self-produced drama series, which slid to RMB 33.62 million from RMB 121.54 million. The company added RMB 4.01 million in first-time contributions from its newly launched streaming platform but recorded negligible sales from outright-purchased and co-financed dramas.
Gross loss narrowed to RMB 15.11 million versus the prior period’s RMB 394.18 million, helped by a reduced impairment charge on drama copyrights (RMB 22.13 million vs RMB 201.94 million previously). Operating loss was RMB 27.18 million; finance costs of RMB 27.62 million drove loss before tax to RMB 54.81 million. Net loss attributable to shareholders fell 91.0% year on year to RMB 50.07 million, translating into a basic and diluted loss per share of RMB 0.12. The board will not pay a final dividend.
Balance-sheet pressure intensified. Net liabilities widened to RMB 543.69 million, while net current liabilities reached RMB 542.81 million. Cash and cash equivalents stood at just RMB 3.54 million; a further RMB 0.86 million was court-frozen. Bank and other loans totalled RMB 135.75 million, of which RMB 111.42 million were overdue. Accrued interest and finance charges linked to these borrowings amounted to RMB 50.68 million.
Asset quality remains weak. Trade receivables were carried at RMB 3.43 million after a 98.2% provision rate. Drama series copyrights, after cumulative impairments, were valued at RMB 38.00 million. The company booked a net reversal of expected credit losses on receivables of RMB 24.04 million during the year.
Liquidity has been supported by two equity placings that raised RMB 21.58 million net, fully deployed toward production costs and working capital. Post-year-end, the board proposed a non-underwritten rights issue targeting up to HK$190 million (about RMB 170 million); completion and proceeds remain uncertain.
The auditor issued a disclaimer of opinion, citing multiple material uncertainties over going-concern viability, including overdue debt, aged payables, limited cash, litigation-related asset freezes and reliance on yet-to-be-secured financing.
Management’s mitigation plans comprise completing existing drama deliveries, monetising script assets, accelerating receivable collection, debt restructuring and the proposed rights issue. No new filming projects were undertaken during FY26, and none were in progress at the results date.
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