HUANXI MEDIA (01003) has issued a profit warning, projecting an unaudited net loss after tax of approximately HK$39 million to HK$41 million for the six months ending June 30, 2026.

This anticipated shortfall marks a sharp improvement of roughly 59.9% to 61.9% compared with the unaudited net loss of about HK$102 million recorded in the same period of 2025.

The narrowed loss is mainly attributed to reduced sales and distribution costs alongside lower administrative expenses. Due to prevailing market conditions and the scheduling of project releases and online availability, the group has adopted a cautious approach to its film rollout during the period, meaning that its major cinematic investments have yet to hit mainland Chinese theaters within this reporting window.

Concurrently, the company has intensified cost-control measures and streamlined its internal operational framework, successfully driving a substantial decline in administrative expenditures.