Orange Sky Golden Harvest, the multi-territory cinema operator, Wednesday warned that it would return to losses when it reports its 2023 losses.
The announcement, made in a regulatory filing, came just days after the company denied that it was preparing to sell off its cinemas in Singapore, which represent the biggest component of its business.
The company, once known only as Golden Harvest, remain famous for its film productions of the 1970s and 1980s when Hong Kong’s film scene was the most vibrant in Asia, and as the studio behind Bruce Lee. It sold its library to Star TV in 1993 and has not been seriously or consistently been involved in production over the past decade.
It said “based on the information currently available and the board’s preliminary review and analysis of the unaudited consolidated management accounts of the Group, the Group is expected to record a net loss attributable to shareholders of not less than HK$90 million for the year ended 31 December 2023, as compared to a net loss of HK$46 million for the year ended 31 December 2022.”
It offered little explanation for the worsening losses – which come despite improving box office activity – except to say that the 2022 figures were flattered by a HK$56 million gain from a property disposal.
Late last week, the group responded to an anonymously-sourced Bloomberg report that said OSGH management is considering a sale of its Singapore Hong Kong or Taiwan cinema chains. It is the leading exhibitor in Singapore, a small player in Hong Kong and a minority owner of VieShow, the leading exhibitor in Taiwan.
“The board wishes to clarify that whilst the Board continuously evaluates various strategic opportunities that might benefit the Group, there are no current plans under consideration regarding the sale of businesses of the group,” it said in another filing.
