CHINA RUYI (00136) reported a net profit of 952 million yuan for the first half of the year after adjustments, focusing on core sectors and deepening industrial synergy and value release.

CHINA RUYI (00136) announced its interim results for the six months ended June 30, 2026, with the group achieving revenue of 1.183 billion yuan, a year-on-year decrease of 46.38%; adjusted net profit of 952 million yuan, a year-on-year decrease of 26.93%; and basic earnings per share of 0.05 yuan. In the first half of 2026, the group focused on its medium- and long-term development plan, concentrating on enhancing quality and efficiency while solidifying the foundation for sustainable operations. The adjustments in performance during the reporting period were mainly influenced by project cycles and strategic investments: on one hand, revenue recognition in the group's film and gaming businesses was affected by project production, distribution, and launch cycles, with some key projects still in production, preparation for distribution, or pre-launch phases during the reporting period. Related investments and some cost expenses incurred during the reporting period, while revenue and profit contributions are expected to materialize in the second half of the year. On the other hand, the group continued to increase strategic investments in high-quality content, AI technology research and development, global top-tier IP reserves, and industry chain integration. Relevant investments have yet to be fully converted into revenue contributions within this reporting period. As of the date of this report, "Eight Immortals!" and "Welcome to Dragon Restaurant" have been released and have achieved good market performance, while "The Great Master of Immortal World" has officially launched, and other key film and gaming projects are progressing as planned. During the reporting period, the group laid out its development plan based on its core business, selectively investing in high-quality enterprises that can deeply integrate with the group's existing operations, thereby enhancing quality and efficiency in core businesses and expanding growth boundaries. The groups strategic investment in "Ruyi Film Entertainment Co., Ltd." (formerly Wanda Film, hereinafter referred to as "Ruyi Film Entertainment") has entered a deep integration and brand renewal phase, achieving full industry chain connectivity from content creation and production to terminal screening. Ruyi Film Entertainment continues to deepen its "Super Scene + Super IP" strategy, linking its film production and gaming resources with Ruyi Film Entertainment's national theater network, significantly enhancing the conversion efficiency of high-quality content into commercial value and continually amplifying the influence and lifecycle of IPs. To seize the strategic opportunity of "AI + Content," the group strategically invested in the global AI video leader, iShiyi Technology, building a dual empowerment system of "Technology + Industry." Both parties will advance collaboration from multiple dimensions: at the strategic level, iShiyi Technologys core team will assist the group in its intelligent transformation; at the technical application level, the focus will be on the deep application of AI in film and television special effects, promotional marketing, and game scenario optimization to enhance efficiency and content quality; at the innovation expansion level, leveraging the groups rich IP resources combined with AI technology for secondary creation, jointly developing multimodal intelligent agents, and exploring the next generation of interactive content forms. The group is also investing in external industry funds to lay out quality entrepreneurial enterprises in upstream and downstream sectors of the industry chain, with fund managers identifying innovations in content, IP development, and gaming-related industries to streamline collaboration across the industry chain. This model effectively broadens the companys industry layout boundaries, continuously strengthens its industry collaborative capabilities and long-term competitive barriers, and injects external vitality into the innovative development of its core business.