Linekong Interactive Posts RMB48.00 Million Interim Loss as Revenue Halves and Crypto Impairment Bites

Bulletin Express
Aug 28

Linekong Interactive Group (Linekong, 08267) swung to a net loss attributable to owners of the company of RMB48.00 million for the six months ended 30 June 2026, reversing a profit of RMB11.43 million a year earlier. Loss per share amounted to RMB0.132 versus earnings per share of RMB0.032 in the prior‐year period.

Revenue fell 52.30% year on year to RMB13.63 million, dragged by a sharp contraction in both core businesses: • Game Business revenue declined 27.52% to RMB12.36 million as key titles moved into later life-cycle stages. • Film Business revenue plunged 94.72% to RMB0.57 million due to project timing. • A new “Other Operation” segment, mainly early-stage retail income from embodied-intelligence service-robot scenarios, contributed RMB0.70 million.

Gross profit dropped 61.14% to RMB2.12 million, trimming the margin to 15.53% from 18.93%. Operating loss widened to RMB40.83 million (1H 2025: operating profit RMB5.57 million), weighed down by: • RMB24.09 million impairment on cryptocurrency holdings (Bitcoin, Ethereum, Solana). • RMB3.24 million loss on disposal of intangible assets. • 226.70% surge in R&D expenditure to RMB4.92 million, primarily linked to robot-business development.

Other segment details: • Selling and marketing costs rose 25.00% to RMB1.49 million. • Administrative expenses edged up 3.50% to RMB13.27 million. • Share of profit from an equity-method investee dropped to RMB0.82 million from RMB2.79 million.

Balance sheet and liquidity: • Total assets slid to RMB258.44 million from RMB312.25 million at end-2025, reflecting lower intangible-asset carrying values and reduced cash. • Cash and cash equivalents fell to RMB44.27 million (end-2025: RMB67.24 million); net cash outflow from operating activities was RMB9.55 million. • The group remains debt-free; gearing ratio (total liabilities/total assets) climbed to 36.30% from 29.80%.

Capital expenditure reached RMB38.70 million, including RMB35.91 million outlays for cryptocurrencies and financial assets. No interim dividend was proposed.

Management reiterated Web3, AI-powered NFTs, green computing power, robotics R&D and expansion of game and film pipelines as strategic priorities while acknowledging market volatility and ongoing regulatory developments.

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