CHINA STAR ENT (00326) issued a profit warning, expecting a mid-term loss attributable to shareholders of approximately HKD 50 million to HKD 62 million, a year-on-year decrease of about 44% to 55%.

CHINA STAR ENT (00326) announced that the Group expects to report a loss attributable to the owners of the Company for the six months ending June 30, 2026, in the range of HK$50 million to HK$62 million, a decrease of approximately 44% to 55% compared to the loss attributable to the owners of the Company for the six months ending June 30, 2025, which was HK$111 million. According to the preliminary review of the unaudited consolidated management accounts of the Group for the six months ending June 30, 2026, and information currently available to the Board, the reduction in loss is mainly due to a decrease in property inventory write-downs to approximately HK$16 million (for the six months ending June 30, 2025: HK$43.944 million); revenue and corresponding marketing, sales, and distribution expenses have decreased by approximately 60% to 70%, although the gross profit margin has improved, and administrative expenses have also declined.