Shanghai Film Co., Ltd. (601595.SH) said on the evening of November 11, 2026, that its AI video-related business remains in an early investment stage, is still small, and will not have a material effect on results. The company said that, as of the end of October, related revenue accounted for less than 0.5% of total revenue.
In a stock-trading abnormal-fluctuation and risk warning, Shanghai Film said it had noted that the market was treating it as an AI video concept stock. It said operations and production had not changed materially. Its main businesses remain film distribution and publicity, cinema operations, and full-chain IP development. It said it had found no other media reports, market rumors, or hot-concept items that might, or already had, significantly affected the share price, and asked investors to note investment risk.
The Paper reported that AI comic-drama concept stocks had been active and had helped lift the culture and media sector. Since the start of November, Shanghai Film had risen for eight consecutive trading days and recorded four daily limit-ups in that stretch, for a cumulative gain of more than 70%. It hit the daily limit on three of the most recent four trading days, including consecutive limit-ups on November 10 and 11.
The November 11 notice said the shares had hit the limit three times since November 5 and triggered an abnormal-movement threshold. On November 5, 6, and 9, the cumulative deviation of closing-price gains over three consecutive trading days reached 20%. The stock closed at the limit again on November 10. The company said the month’s gain was 70.29%, above the film-industry average, and that there was a risk of a pullback. Turnover on November 11 was 6.97%. Average daily turnover over the latest five trading days was 5.93%, above the 3.84% average over the prior ten trading days. The company asked investors to note secondary-market trading risk.
Shanghai Film had already issued a trading-risk notice on November 10 and an abnormal-fluctuation notice on November 9. Those notices said that, apart from information already disclosed, the company had no other material information that should have been disclosed but had not been.
In the latest notice, the company said cinema exhibition remains its traditional core business, operations are normal, and the internal and external operating environment has not changed materially. Citing its third-quarter 2026 report disclosed on October 31, it said revenue for the first three quarters was 499 million yuan, down 30.96% year on year, and net profit attributable to shareholders of the parent was 18.514 million yuan, down 86.72%. It asked investors to watch the risk of earnings volatility. The company attributed the pressure to a broader downturn in the film industry.
Public information cited in the report says Shanghai Film was established in July 2012 through the overall restructuring of Shanghai Oriental Film Distribution Co., Ltd. Its controlling shareholder is Shanghai Film Group Co., Ltd., and its actual controller is the Shanghai State-owned Assets Supervision and Administration Commission. It listed on the Shanghai Stock Exchange main board on August 17, 2016, among the first state-owned film companies to enter the domestic capital market. It describes a “3+1+X” structure built around film distribution, cinema operations, and IP operations, with industry-finance integration as strategic support and incubation of newer growth areas.
The company has also described work using AI to refresh classic IP. At its 2026 half-year results briefing in late September, management said it treats AI and other frontier technologies as an important driver of industrial upgrading and is using its own classic IP for an “IP+AIGC” refresh. An AIGC comic-adapted martial-arts film it co-produced, Shanzhu Dao, went online in early September.
The company said its production team has built an AIGC workflow covering script, storyboard, art, generation, editing, quality control, and delivery, aimed at narrative continuity and completeness in longer AIGC content. It said it is deepening cooperation with Jimeng AI and Volcano Engine. After co-creating AIGC content for Tongmeng Huweidui with Seedance 2.0, it internally tested and first released Seedance 2.5 and launched the AIGC short I Might Be Diagnosed as a Calabash Brother, which it presented as a test of AI in industrial film and television production.
A Guotai Haitong Securities research report cited by The Paper said AI video is extending from short dramas toward higher-end long dramas and films, which could expand content supply. The report said AI is shifting production from traditional live shooting toward generative production, cutting costs and shortening cycles, and put overall production cost at a decline from 300,000 yuan per title in the past to 50,000 yuan per title. It said that as supply grows, value in the chain may shift toward IP and platforms.
According to Dazhihui VIP, as cited by The Paper, Shanghai Film closed limit-up on November 11 at 46.83 yuan per share. On a forward-adjusted basis, that close was a record high. Total market value was 21 billion yuan.
Original report: The Paper.
