Litian Pictures posts 274% revenue jump for six months to 31 Dec 2025, but net loss widens on thinner margins

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Litian Pictures reported revenue of RMB37.64 million for the six months ended 31 December 2025, a 274.2% surge from RMB10.06 million in the preceding half-year. The rebound was driven by a strategic pivot to self-produced drama series, which contributed 99.99% of total revenue versus 38.88% in the prior period.

Gross profit almost doubled to RMB6.86 million (30 June 2024: RMB3.71 million), yet the gross margin compressed to 18.2% from 36.8%, reflecting aggressive pricing to secure distribution deals. Selling and marketing outlays rose 514.6% to RMB1.09 million, while administrative expenses climbed 55.3% to RMB12.15 million. Finance costs escalated 89.8% to RMB10.42 million, mainly on higher interest charges for bank and other loans.

As a result, loss attributable to equity shareholders widened 9.7% year-on-year to RMB11.52 million, and basic/diluted loss per share stayed at RMB0.03. The board declared no interim dividend.

Segment performance • Self-produced drama series: Revenue soared 862.4% to RMB37.64 million on the licensing of six titles; segment gross profit reached RMB6.86 million with an 18.2% margin. • Outright-purchased drama series: No sales were recorded (prior period: RMB3.91 million) as resources were redirected to in-house production. • Other/co-financing income fell sharply to RMB0.002 million (prior period: RMB2.24 million).

Balance sheet and liquidity Cash at bank and on hand stood at RMB3.68 million (30 June 2025: RMB4.01 million). Net current liabilities widened to RMB528.10 million, while total debt declined slightly to RMB151.22 million. Gearing eased to 28.7% from 31.0%, but the current ratio remained low at 0.2 times, underscoring liquidity pressure. Contingent claims against subsidiaries totalled RMB127.50 million, of which RMB103.72 million is already recognised as liabilities.

Post-period capital move On 4 February 2026 the company completed a placement of 72.00 million new shares at HK$0.20 each, raising net proceeds of approximately HK$14.00 million earmarked for drama production costs.

Operational outlook Management plans to accelerate filming and distribution of self-produced content, explore short-form drama opportunities and expand into overseas markets while continuing negotiations with creditors and broadcast platforms to improve cash generation and financial flexibility.

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