China Film Posts H1 2026 Net Loss of RMB 110 Million as Box Office Falls 40.62%

China Film Group Corporation posted a net loss of RMB 110 million in the first half of 2026. On August 24, the company released its 2026 semi-annual report, showing revenue of RMB 1.512 billion, down 11.93% year on year, and a net loss attributable to shareholders of RMB 110 million, narrowing by RMB 310,000 compared with the same period in 2025. Basic earnings per share were negative RMB 0.059. The company said the revenue decline was mainly due to lower box office from the Spring Festival film slate compared with 2025, which reduced exhibition revenue.

In the second quarter, revenue was RMB 660 million, down 8.68% year on year, while net profit attributable to shareholders was RMB 3.9397 million, down 87.03%. The loss was concentrated in the first quarter of 2026, when the net loss reached RMB 114 million. As of the end of the reporting period, consolidated total assets stood at RMB 18.453 billion, down 3.41% from the start of the year, and net assets attributable to shareholders were RMB 10.929 billion, down 1.58%.

During the reporting period, national box office totaled RMB 17.356 billion, down 40.62% year on year. Domestic films generated RMB 13.959 billion, accounting for 80.43% of the total, while imported films brought in RMB 3.323 billion, or 19.15%. Total admissions reached 422 million. As of the end of the period, the number of screens with countable box office nationwide was 81,380.

China Film's main businesses cover six segments: production, distribution, exhibition, technology, services, and innovation. In the first half, production revenue was RMB 213 million, up 77.22% year on year; distribution revenue was RMB 630 million, down 3.29%, representing 41.67% of total revenue; exhibition revenue was RMB 351 million, down 32.66%; and services revenue was RMB 30.6636 million, down 70.73%.

In production, the company led or participated in the release of 18 films, which together generated RMB 9.357 billion in box office, accounting for 67.03% of the national domestic film box office during the period. The top five films were "Pegasus 3" (RMB 4.421 billion), "The Legend of the Assassin" (RMB 1.448 billion), "Silent Shock" (RMB 1.365 billion), "Boonie Bears: Year of the Bear" (RMB 1.067 billion), and "Cold War 1994" (RMB 296 million). Except for "Cold War 1994," which was released during the May Day holiday, the other four were released during the Spring Festival.

In distribution, the company distributed 344 films, achieving box office of RMB 11.946 billion, or 76.77% of the national total. It led or participated in distributing 273 domestic films, with cumulative box office of RMB 10.285 billion, accounting for 79.66% of the national domestic film box office, and 71 imported films, with cumulative box office of RMB 1.661 billion, or 62.68% of the imported film total. Seven of the top ten films at the national box office were distributed by the company.

In exhibition, as of the end of the period, the company's controlled and affiliated cinemas and theater chains covered 24,288 screens and 2.9925 million seats nationwide, giving the company a 29.85% screen market share. In technology, 260 CINITY screens were operating domestically, including 81 CLED screens, with 7 more installed and awaiting opening.

Based on the principle of prudence, the company reviewed and inventoried all assets within the consolidated scope as of June 30, 2026, and made impairment provisions for assets showing signs of impairment. Total impairment provisions for the first half of 2026 were RMB 29.0578 million, mainly consisting of bad debt provisions of RMB 28.4999 million.

From July 1 to the date of this report, the company led or participated in the release of seven films, including "Eight Immortals!" , "Welcome to the Dragon Restaurant", and "The Annual Meeting Can't Stop! 2", which are still showing during the summer season. As of 7 p. m. on August 24, these three films had box office of RMB 1.749 billion, RMB 1.614 billion, and RMB 154 million, respectively. "Eight Immortals!" and "Welcome to the Dragon Restaurant" ranked second and third in the summer box office chart, with "Kung Fu Women's Football" first at RMB 2.308 billion.

As of the report date, the company had nearly 80 projects in development, including more than 40 original projects such as "Infinite War", "I Am Not Van Gogh", "The Genius Translator", "The Wandering Earth 3", "The Small Temple", and "Chinese Auspicious Beasts".

In the first half of 2026, several other film companies also faced losses. Hengdian Entertainment reported revenue of RMB 807 million, down 41.2% year on year, and a net loss attributable to shareholders of RMB 61.6187 million, swinging from a profit. Beijing Culture reported revenue of RMB 97.4686 million, down 38.22%, and a net loss of RMB 39.2048 million, narrowing sharply from a loss of RMB 233 million in the same period of 2025. Happy Blue Ocean reported revenue of RMB 273 million, down 33.86%, and a net loss of RMB 45.7243 million, turning from a profit of RMB 8.6341 million in 2025. As of the close on August 24, China Film shares traded at RMB 11.94, down 0.08%, with a total market value of RMB 22.3 billion, and a cumulative decline of 23.86% since the start of 2026.