Maoyan Entertainment (01896) saw its shares fall more than 4% following the release of its interim results, trading down 4.41% to HK$4.23 at the time of writing, with turnover reaching HK$31.11 million.

The company reported revenue of RMB 1.79 billion for the first half, down 27.6% year-on-year, alongside a net loss of RMB 28.7 million, swinging from a profit in the same period last year. During the period, the company participated in the promotion and distribution of 38 films and led distribution for 28 titles, with both volume and box office coverage reaching record highs for the first half.

A research report from China Securities stated that the deep adjustment in the overall movie market dragged the company's performance into a loss. National box office revenue fell 40.6% year-on-year in the first half, impacting all three of the company's major business segments. Gross margins came under pressure, leading to a net loss for the period. However, new business initiatives are progressing steadily. Key factors to watch going forward include the potential recovery of the movie market driven by Avengers 5 at the end of the year and the Spring Festival season next year, as well as the sales performance of its IP business.