**CHINA STAR ENT (00326) saw its share price drop more than 4% in Hong Kong trading on Wednesday, continuing a downward trend after the company released its latest financial results.

As of the time of writing, the stock was down 3.96% to HK$6.675, with turnover reaching HK$21.555 million.

On August 28, the company announced its interim results for the six months ended June 30, 2026. During the period, the group recorded revenue of HK$95.314 million, a decrease of 62.84% year-on-year.

More notably, the loss attributable to company owners narrowed to HK$56.094 million, representing a reduction of 49.41% compared to the same period last year. The loss per share stood at HK$2.31 cents.

According to the announcement, the losses during the period primarily consisted of marketing, promotional, sales, and distribution expenses of HK$11.483 million (compared to HK$35.214 million in the six months ended June 30, 2025), other operating expenses of HK$18.441 million (versus HK$45.734 million previously), financing costs of HK$51.588 million (compared to HK$51.868 million), and administrative expenses of HK$58.505 million (down from HK$81.719 million in the prior-year period).

The improvement in losses was attributed to a rise in gross profit margin and a general decline in various expense categories across the board.**