Huayi-Tencent entertainment venture posts wider interim loss
Hong Kong-traded company targets increased collaboration with top Hollywood directors and major studios
Huayi Tencent Entertainment Company, the Hong Kong-based venture controlled by filmmaker Huayi Brothers Media Corp and internet giant Tencent Holdings, recorded a wider year-on-year loss in the first half amid a busy slate of projects on the mainland and overseas.
The company reported a net loss of HK$73.4 million in the six months to June, in line with its profit warning two weeks ago, compared with HK$58. 6 million in the same period last year.
It primarily attributed the loss to the provision for impairment of certain film rights, prepayments and investment in an associate.
Total revenue rose 5 per cent to HK$67.3 million, up from HK$64.4 million a year earlier, on the back of strong sales from entertainment and media operations, as well as online health care services.
Shares of the company were unchanged at 31 Hong Kong cents on Monday at the close of trading.
Wang said Huayi Tencent Entertainment aims to collaborate with Hollywood’s top directors and major studios, while investing in the development of film and television projects, as “quality imported blockbusters...[were] the main contributors to China’s box office receipts” in the first half.