Beijing Enlight Media Co., Ltd. (300251.SZ) reported a staggering 98.52% year-on-year decline in net profit attributable to shareholders for the first half of 2026, totaling just 33.01 million yuan, a sharp contrast to the 2.23 billion yuan recorded in the same period last year. The company's first-half revenue dropped 90% to 324 million yuan, according to its semi-annual report released on August 25.

In the second quarter alone, revenue fell 50.03% year-on-year to 134 million yuan, while net profit attributable to shareholders declined 95.44% to 9.73 million yuan. Non-GAAP net profit, excluding non-recurring items, tumbled 99.79% to 4.64 million yuan, with basic earnings per share at 0.01 yuan.

The company attributed the sharp revenue decline to "a higher base from the same period last year, when film and TV drama revenue was significantly higher." The first half of last year marked a record-breaking period for the company, driven by the box office phenomenon Nezha: The Devil Child Stirs Up the Sea (commonly known as "Nezha 2"), with net profit approaching the combined total of the previous seven years at 2.23 billion yuan. Last year's full-year performance was also the company's fastest growth since its 2011 listing.

Where the revenue went

During the reporting period, revenue from film and TV drama-related businesses plummeted 95.68% year-on-year to 134 million yuan, while brokerage and other businesses grew 35.58% to 190 million yuan. The company's films released in the first half included Just Going to Work, Pegasus 3, Silent Awakening, and re-releases of Return to the Wild and Big Fish & Begonia, collectively grossing approximately 5.82 billion yuan at the box office by the end of the reporting period.

Enlight Media explained that the performance decline was due to the high base effect from the previous year. The company has been undergoing organizational restructuring, shifting its main live-action production teams toward animation IP creation. It now describes itself as having the foundation to become a "national animation company," with expanding teams in derivative businesses and the official launch of its online store "Enlight Mini Shop" to enhance merchandise sales channels.

In industrial investment, the company continues to expand into gaming, derivatives, and short-drama sectors through asset-light strategies, having newly invested in or established over ten entities with advantages in gaming, merchandise, serialized animation, short video, and short drama. These entities are in early incubation stages, with some investment and cooperation projects already underway.

Cash flow and investment shifts

Operating cash flow turned negative at -134 million yuan, down 104.48% year-on-year, primarily due to the high base of film and TV project collections in the prior-year period. Investment activity cash flow surged 178.41% to 917 million yuan, mainly due to the acquisition of Beijing Yulin Enterprise Management Co., Ltd. in the same period last year. Investment income swung from 81.38 million yuan to -60.51 million yuan, reflecting overall losses at associated companies.

Founded in 1998 and listed on the ChiNext board in August 2011, Beijing Enlight Media is a private media and entertainment group chaired by Wang Changtian. The company focuses on content production and IP operation, spanning films, TV dramas, animation, music, literature, artist management, gaming, and real-world entertainment, with revenue primarily derived from film investment, production, and distribution, supplemented by equity investment returns.

Industry outlook and pipeline

Enlight Media noted that China's box office totaled 17.36 billion yuan in the first half of 2026, according to Maoyan Professional data, with revenue highly concentrated in the Spring Festival period while other holiday windows like Qingming and May Day underperformed. The industry is undergoing structural adjustment against a high base set by last year's blockbuster. The company stated that "the film industry stands at a critical juncture of transformation," emphasizing that creators must return to sincere storytelling and that investment logic should shift from subject matter and cost to creator attitude and innovation. It also highlighted policy encouragement to reduce dependence on single box office revenue, using IP operations to open a second growth curve and expand the industry's full-chain output value.

For the second half, the company's film Missing You premiered on July 17, 2026, with additional projects like Article 17, Vivid and Fragrant, Two Minds, and Forty-Four Astringent Persimmons awaiting release timing. The TV drama Spring Banquet is in early development. In animation, the company's invested film The Eight Immortals! hit theaters on July 18, while its first self-produced animated film Go to Your Island launched on August 7, with merchandise sold simultaneously at the Enlight Mini Shop. Other animation projects in progress include Rakshasa Sea Market, Grandma, There's a Fish in My Ear, Hou Yi, Zhuolu, Big Fish & Begonia 2, Acacia, Shuofeng, Monkey King: Havoc in Heaven, Tea Ah Middle School 2, Four Heavenly Kings: Edge God, Yesterday's Blue Sky 2, The Eight Immortals Cross the Sea, Jiang Ziya 2, Big Fish & Begonia 3, Diary of Dali Temple, Daji, God of Wealth, Lu Pan, Star Travel Prequel, Wang Huanjun and Zhang Binzhi, Red Boy, and The Last Kui Ba.

As the 2026 summer box office season draws to a close with less than a week remaining, total revenue has reached nearly 11.8 billion yuan as of August 25, according to Maoyan Professional data. Enlight Media's co-financed and distributed films Missing You and Go to Your Island grossed 170 million yuan and 140 million yuan respectively, while its invested The Eight Immortals! earned 1.76 billion yuan. The company described the summer season as "remarkably strong, with rich and high-quality supply, domestic films taking the lead, comprehensive genre diversity, and diverse audience composition, jointly creating a well-received and commercially successful season that injects vitality into the upcoming film market."

At market close on August 25, Enlight Media shares traded at 10.86 yuan, up 0.93%, with a total market capitalization of 31.9 billion yuan.