Shifeng Culture released its 2026 interim report on August 28. Leveraging coordinated development across its three core businesses of toys, gaming, and new energy, the company focused on AI-powered smart toys and mini-game overseas expansion. Revenue grew steadily during the reporting period, but a sharp rise in selling and administrative expenses resulted in higher revenue without higher profit. Financial data show that the company achieved operating revenue of 212 million yuan, up 11.83 percent year on year. Net profit attributable to the parent company was 3.0852 million yuan, down 26.09 percent. Net profit after deducting non-recurring items was 2.1094 million yuan, down 50.51 percent. Net cash flow from operating activities was negative 37.4374 million yuan. Although the net outflow narrowed compared with the same period last year, it remained in outflow territory. By business segment, gaming was the biggest growth engine this period, generating operating revenue of 101 million yuan, up 49.29 percent year on year, and raising its share of total revenue to 47.50 percent. The toy business posted revenue of 103 million yuan, down 9.08 percent year on year, with smart toys and trendy toys achieving high growth of 439.91 percent and 222.85 percent respectively. New energy photovoltaic business revenue was 8.4859 million yuan, down slightly by 4.72 percent year on year. Selling expenses rose 55.97 percent year on year to 73.3185 million yuan. Administrative expenses rose 50.18 percent, and research and development expenses rose 70.22 percent. Ending inventory reached 159 million yuan, up 46.73 percent from the beginning of the period. The company faces multiple risks including macroeconomic fluctuations, intensifying industry competition, exchange rate volatility, and policy regulation. Going forward, it needs to focus on sales volume growth for AI toys and trendy toys, overseas monetization of its gaming business, and improvement in operating cash flow.
Shifeng Cultural Development Co LtdNet profit down 26.09%, deducted profit down 50.51%, expenses up sharply, cash flow negative.
