On September 1, CHINA RUYI fell 5.58% in regular trading, trading at HK$1.27/share, with turnover of HK$343 million. The sell-off extended following the release of the company's interim results on August 28.

The mid-year report showed first-half revenue of RMB 1.183 billion, down 46.37% year-over-year, while net profit came in at RMB 831 million, declining 32.34%. Adjusted net profit was RMB 952 million, down 26.93%. Gross margin contracted sharply from 50.80% to 24.58%, reflecting significant margin pressure. The company also announced no interim dividend. Management attributed the decline to project cycle timing, with key film and gaming titles still in pre-launch phases during the reporting period, and increased strategic spending on premium content, AI R&D, and global IP reserves that have yet to convert into revenue.

While the company highlighted promising second-half catalysts — including the box office performance of co-produced film Welcome to Dragon Restaurant, which has surpassed RMB 1.7 billion in cumulative ticket sales — and cumulative share buybacks of 255 million shares signaling management confidence, the near-term revenue contraction and earnings decline continued to weigh on sentiment.

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