Orange Sky Golden Harvest Entertainment Announces Final Results For The Year Ended 31 December 2012

27 March 2013 18 h 08 min Comments Off

Results For The Year Ended 31 December 2012

 

Highlights

• Turnover increased by 16% to HK$1,592 million

• Gross profit grew by HK$155 million to HK$948 million

• Profit attributable to equity holders remained at HK$96 million

• Cinema admissions we served on a full and aggregated basis was 34.1 million across

cinema networks in Hong Kong, Mainland China, Taiwan and Singapore as a whole

• Cash on hand was HK$729 million

 

Management Discussion and Analysis

It was another fruitful year for the Group in 2012. The Group reported a net profit attributable to equity holders of HK$96 million for the year. The macro operating environment was challenging this year and the market conditions in territories we operated were mixed. Although we are facing increasingly fierce competition in the industry, we manage to achieve our goal and maintain persistent growth through our prudent operation.

In 2012, the Group’s turnover rose by 16% to HK$1.59 billion, among which revenue from exhibition business increased by 23%, while income from distribution and production activities declined by 35% as there was no new TV production. During the year 2012, box office receipts of the Group’s multiplexes in Mainland China boosted by 67% as compared with last year, box office receipts of Vie Show in Taiwan and Hong Kong’s cinemas both recorded a strong growth of 18% and 11% respectively. Box office receipts of Golden Village in Singapore showed a slight increase of 4% despite temporary closure of a cinema for renovation during the year. Gross margin increased to 60% from 58% of 2011. The Group’s EBITD for the year amounted to HK$240 million (2011: HK$230 million).

During the year 2012, the Group recorded a net gain of HK$4.0 million (after deductions of related expenses and tax expense) for settlement of legal dispute on a lease agreement in relation to a cinema project in Hangzhou. The Group also disposed of certain equity investments and recorded a gain of HK$7.9 million in 2012. These exceptional gains were partially offset by a provision of HK$5.3 million for expenses in relation to the closure of a Hong Kong Cinema, GH Mongkok, in February 2013.

During the year, the Group raised additional bank borrowings of approximately HK$140 million and spent around HK$290 million on capital expenditures, mainly for new cinema projects in Mainland China, Taiwan and Singapore. As of 31 December 2012, cash on hand of the Group amounted to approximately HK$730 million (2011: HK$710 million). The Group’s gearing ratio maintained at a reasonable level of about 23% as at 31 December 2012 (2011: 20%).

 

BUSINESS REVIEW

Film Exhibition

During the year 2012, the Group opened 17 cinemas with 123 screens in total in Mainland China, Taiwan and Singapore. As of 31 December 2012, the Group is operating 70 cinemas with 528 screens across Mainland China, Hong Kong, Taiwan and Singapore, significantly increased from 53 cinemas with 405 screens a year ago. The Group’s cinemas served approximately 34.1 million guests during the year, an increase of 16% as compared to 29.5million guests last year. Gross box office receipts, on a full and aggregated basis, was registered at HK$1.98 billion, representing a 18% growth from last year.

In 2012, the Group’s 70 cinemas generated revenue of HK$1.54 billion, accounting for about 93% of the Group’s total revenue. The major Hollywood blockbusters released this year were The Avengers, Men in Black 3, Titanic 3D, The Amazing Spider-Man, The Dark Knight Rises, The Hobbit: An Unexpected Journey and Life of Pi. The major Chinese-language blockbusters were Lost in Thailand in Mainland China, Cold War in Hong Kong, Din Tao: Leader of the Parade in Taiwan and Ah Boys to Men: Part 1 in Singapore.

 

OPERATING STATISTICS OF THE GROUP’S CINEMAS

The Group is committed to pursuing visual and audio effect perfection to improve movie going experience for our audiences. Currently, all screens in Mainland China, Hong Kong, Taiwan and Singapore have been fully installed with digital equipment and over 50% of the Group’s screens are 3D compatible. In Hong Kong, two additional cinemas have been equipped with Motion Chair D-BOX delivering extraordinary theatrical experience to audiences through its authentic motion effects synchronised with onscreen actions. In Taiwan, the Group is the exclusive digital IMAX® operator and has added one new digital IMAX® screen during the year. Currently, the Group has installed over 100 sets of unprecedented SONY 4K Projection System in our Mainland China multiplexes and about 120 sets of projectors to support the high frame rate (HFR) movies. The Hobbit: An Unexpected Journey was the first movie made at a high frame rate of 48 frames per second and was widely released in December 2012. We believe these unrivalled visual effects will deliver premium and aweinspiring theatrical experience to our audiences.

 full press release

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