Orange Sky Golden Harvest, the multi-regional cinema operator, warned on Wednesday that it will return to losses when it reports its losses in 2023.
The announcement, made in a regulatory filing, came just days after the company denied that it was preparing to sell its cinemas in Singapore, the largest component of its business.
The company, formerly known as Golden Harvest, remained famous for its film productions in 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 continuously involved in production for the past decade.
It said: “Based on currently available information and the Board of Directors’ preliminary review and analysis of the Group’s unaudited consolidated management accounts, the Group is expected to record a net loss attributable to shareholders of at least HK$90 million for the year ending 31 December 2023, compared to a net loss of HK$46 million. In HK$1 million for the year ending 31 December 2022.
It offered little explanation for the mounting losses – which come despite improving box office activity – except to say that the 2022 numbers were happy with a gain of HK$56 million from the sale of the property.
Late last week, the group responded to an anonymous Bloomberg report that said OSGH management was considering selling cinema chains in Singapore, Hong Kong and Taiwan. It is the major exhibitor in Singapore, a minor player in Hong Kong and a minority owner of VieShow, the major exhibitor in Taiwan.
Another statement said: “The Board wishes to clarify that while the Board is constantly evaluating various strategic opportunities that may benefit the Group, there are no current plans under consideration in relation to the sale of the Group’s business.”