On August 25, China’s leading film and television company, China Film Industry Group Co., Ltd. (China Film Group), announced that it had incurred a net loss of 110 million yuan (RMB) in the first half of this year. The company attributed the loss to lower box office revenue from the Chinese New Year films compared to the same period last year, leading to a decline in its exhibition business revenue.
In its “2026 Interim Report” released on the 25th, China Film Group indicated that during the reporting period, the company achieved operating income of 1.512 billion yuan, a year-on-year decrease of 11.93%. The net profit attributable to the shareholders of the listed company was -110 million yuan, a slight increase of 0.28% compared to the same period last year. However, the company’s total profit decreased by 49.78% year-on-year.
Due to the decline in profit, the net assets attributable to the shareholders of the listed company of China Film Group stood at 10.929 billion yuan, a decrease of 1.58% from the beginning of the year.
The company explained the reasons for the loss, stating that the lower box office revenue from the Chinese New Year films compared to the same period last year led to a decrease in the exhibition business revenue.
The report revealed that in the second quarter of this year, China Film Group achieved revenue of 660 million yuan, marking an 8.68% decrease year-on-year. The net profit attributable to the company’s equity holders was 3.9397 million yuan, a significant decline of 87.03% year-on-year, indicating that the loss primarily occurred in the first quarter of the year.
According to the “2026 First Quarter Report” released by China Film Group on April 29, the net loss in the first quarter reached 114 million yuan, surpassing the total loss for the first half of the year.
Public information shows that China Film Industry Group Co., Ltd. (China Film Group), established on December 9, 2010, is headquartered in Huairou District, Beijing. As a leading enterprise in the Chinese film industry, China Film’s main business includes creation, distribution, exhibition, technology, service, and innovation, covering various core segments of the industry chain.
The report indicated that in the first half of this year, revenue from creative business increased by 77.22% year-on-year, while revenue from distribution business decreased by 3.29%, accounting for 41.67% of total revenue. The most significant revenue declines were observed in the exhibition and service businesses, with corresponding revenues dropping by 32.66% and 70.73% year-on-year, amounting to 351 million yuan and 30.6636 million yuan, respectively.
Apart from China Film Group’s net loss, several film and television companies on the mainland are facing similar challenges. According to reports, in the companies that have released their semi-annual reports, Hengdian Film and Television’s operating income dropped by 41.2% year-on-year, with a net loss of 61.6187 million yuan from a profit in the previous period. Beijing Culture’s operating income decreased by 38.22%, with a net loss of 39.2048 million yuan. China Everbright’s operating income fell by 33.86%, with a net loss of 45.7243 million yuan, a shift from a profit of 8.6341 million yuan in the same period last year. Ru Yi Films is expected to incur a net loss of 1.2 billion to 1.8 billion yuan in the first half of this year, compared to a net profit of 5.36 billion yuan in the same period last year.
The entire Chinese film industry experienced a significant year-on-year decline in box office revenue in the first half of this year. According to China Film Group’s “2026 Interim Report,” the nationwide total box office revenue for the first half of 2026 reached 17.356 billion yuan, representing a 40.62% decrease compared to the same period last year.
As of the close of trading on August 24, China Film Group’s stock price was 11.94 yuan per share, a decrease of 0.08%. Since the beginning of the year, the stock has cumulatively declined by 23.86%, with a total market value of 22.3 billion yuan.