(Yicai) Aug. 27 -- Shares of Enlight Media dropped despite the Chinese production company behind animation blockbuster Ne Zha 2 reporting record-high earnings in the first half of this year, thanks to a jump in income from film and television productions.

Enlight Media [SHE: 300215] closed 4.8 percent lower at CNY6.31 (88 US cents) a share today. The broader Shenzhen market fell 1.4 percent.

Net profit surged 372 percent to CNY2.2 billion (USD307.6 million) in the six months ended June 30 from a year earlier, the Beijing-based firm said in an earnings report yesterday. Operating revenue soared 143 percent to CNY3.2 billion.

In comparison, Enlight Media's net profit shrank 30 percent to CNY292 million (USD40 million) last year from 2023, while its revenue climbed 2.6 percent to CNY1.6 billion. In addition, the firm logged a total CNY2.3 billion profit over the past seven years.

Enlight Media was a main producer and distributor of Ne Zha 2, which has raked in over CNY15.9 billion (USD2.2 billion) at the global box office this year, with the Chinese mainland accounting for 97 percent of the total.

Although Enlight Media has not disclosed its revenue-sharing ratio from Ne Zha 2's earnings, when the film's box office reached CNY4.8 billion (USD671.1 million) in February, it said it had received around CNY950 million to CNY1 billion (USD130 million to USD139.8 million) from the flick.

Enlight Media is transitioning to an "intellectual property creator and operator," from a "high-end content provider," it said. The IP operation business is emerging as a new highlight and sustainable growth driver, it added.

Enlight Media's merchandise business focused on the Ne Zha IP in the first half of this year, covering more than 30 categories and over 500 products.

In addition, Enlight Media has set up a gaming joint venture with a team of more than 50 members. The new company is developing its first AAA game, but has not disclosed any details.

Editor: Martin Kadiev