Hong Kong-listed YH Entertainment Group (YH ENT) reported unaudited interim results for the six months ended 30 June 2026.

Revenue and Profitability • 1H 2026 revenue reached RMB 511.87 million, up 23.6% year over year. • Gross profit rose 10.9% to RMB 121.37 million, but gross margin narrowed to 23.7% (1H 2025: 26.4%) due to higher cost of revenue, particularly in music production and concerts. • Operating profit fell 10.6% to RMB 58.92 million. • Profit for the period declined 23.1% to RMB 46.98 million, weighed by net other losses of RMB 3.21 million versus gains of RMB 12.72 million a year earlier. • Adjusted net profit (non-IFRS measure) inched up 3.2% to RMB 62.86 million, reflecting add-back of share-based payments and fair-value swings in financial assets. Adjusted net margin eased to 12.3% (1H 2025: 14.7%).

Segment Performance • Artist Management: Revenue rose 9.9% to RMB 392.27 million, driven by higher commercial activity volume. Segment gross profit grew 26.4% to RMB 89.64 million; margin improved to 22.9% (19.9% a year earlier). • Music IP Production & Operation: Revenue increased 24.1% to RMB 45.55 million, mainly on higher album sales. Gross profit contracted 53.0% to RMB 12.21 million; margin fell sharply to 26.8% (70.7% in 1H 2025) due to elevated production costs. • IP Commercialization: Revenue advanced 38.0% to RMB 28.44 million on more concerts. Gross profit dropped 33.5% to RMB 8.32 million; margin halved to 29.2% given concerts’ lower profitability. • Pop Toys (new segment): Generated RMB 45.61 million revenue and RMB 11.20 million gross profit, for a 24.6% margin.

Cost and Expense Trends • Cost of revenue climbed 28.1% to RMB 390.50 million, outpacing top-line growth. • Selling and marketing expenses jumped 45.6% to RMB 39.83 million, reflecting intensified artist promotion. • General and administrative expenses rose 4.6% to RMB 32.12 million, with equity-settled share-based payments at RMB 10.02 million. • Net impairment losses on financial assets grew to RMB 4.29 million (1H 2025: RMB 1.12 million).

Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB 372.17 million; term deposits at RMB 442.81 million. • Bank borrowings decreased to RMB 52.84 million (31 Dec 2025: RMB 58.43 million), trimming the gearing ratio to 3.9% from 4.4%. • Contract liabilities surged 70.6% to RMB 275.87 million, mainly from advance receipts in the music IP segment. • Net trade receivables fell 5.4% to RMB 102.0 million after higher impairment provisions. • Financial assets at fair value through profit or loss expanded 18.0% to RMB 467.19 million following additional investments.

Capital Management No significant acquisitions or disposals occurred during the period. The company held 41.32 million treasury shares; none were transacted in 1H 2026. No interim dividend was declared.

Outlook and Strategy Management reiterated its transition toward an “AI + IP” ecosystem while maintaining focus on core entertainment and expanding the pop-toy portfolio. The group continues to explore AI applications across cultural content and aims to strengthen its global presence via Yuehua Korea and international artist promotion.

Compliance and Governance The company reported full compliance with Hong Kong’s Corporate Governance Code, except for the combined roles of chairperson and CEO held by founder Du Hua. The board sees the arrangement as beneficial for strategic cohesion and will keep it under review.

Auditors and Oversight The Audit Committee, comprising three independent non-executive directors, reviewed the interim results and confirmed they align with applicable accounting standards and disclosures.