Zhewen Pictures Group Co Ltd

Zhewen Pictures disclosed its 2026 semi-annual report on August 27. In the first half of the year, it achieved total operating revenue of 1.962 billion yuan, up 6.06% year on year, but net profit attributable to the parent company was 89.7461 million yuan, down 22.35% year on year. Net profit after deducting non-recurring items was 84.9124 million yuan, down 23.59% year on year. Net cash flow from operating activities was negative 353 million yuan, compared with negative 194 million yuan in the same period last year. Basic earnings per share were 0.08 yuan, and the weighted average return on equity was 5.76%. The company's main businesses are film and television operations and wool textile operations.

Zhewen Pictures released its 2026 interim report. The company's total operating revenue was 1.962 billion yuan, up 6.06% year-on-year, achieving growth for three consecutive years. Net profit attributable to the parent company was 89.7461 million yuan, down 22.35% year-on-year. Net cash flow from operating activities was negative 353 million yuan, a decrease of 159 million yuan year-on-year. The asset-liability ratio was 58.19%, gross margin was 16.74%, return on equity was 5.60%, and diluted earnings per share was 0.08 yuan. Total asset turnover was 0.55 times, and inventory turnover was 1.93 times. The number of shareholders was 39,000, and the top ten shareholders held 40.05% of total share capital.

Zhewen Pictures has replied to the Shanghai Stock Exchange's regulatory inquiry letter regarding its 2025 annual report, disclosing that the gross margin of its film and television business has fallen to -102.79%, with asset impairment risks remaining persistently high. The company achieved operating revenue of 3.23 billion yuan in 2025, up 6.22% year-on-year, and net profit attributable to shareholders of 133 million yuan, up 10.46% year-on-year. However, revenue from the film and television business was only 4.6654 million yuan, accounting for 0.14% of total revenue, with gross margins over the past three years at -24.69%, -49.56%, and -102.79% respectively. As of the end of 2025, the balance of inventory impairment provisions reached 771 million yuan, of which provisions for film and television inventory amounted to 114 million yuan, a sharp year-on-year increase of 136.25%. The main project, 'One Step to Heaven', had a book balance of 310 million yuan with cumulative impairments of 291 million yuan, while 'The Golden Talisman' had a book balance of 175 million yuan with cumulative impairments of 146 million yuan. Provisions for bad debts on accounts receivable stood at 324 million yuan, with the 294 million yuan of individually assessed receivables provided for at a rate of 100%, involving multiple film and television companies that have been deregistered or lost contact. The textile business achieved operating revenue of 3.17 billion yuan, accounting for 99.82% of total revenue, but net profit attributable to shareholders in the first quarter of 2026 fell sharply by 54.34% year-on-year, squeezed by both rising raw material prices and exchange rate fluctuations.