[ET Net News Agency, 14 September 2021] Transmit Entertainment Limited (01326) said for
the year ended 30 June 2021, the group expects to record a net loss attributable to owners
of the company in the range of approximately HK$5,000,000 to HK$15,000,000, as compared to
the net loss attributable to owners of the company of HK$126,600,000 for the year ended 30
June 2020.
The expected reduction in loss was mainly attributable to (i) the disposal of partial
equity interests in the film exhibition business during the year due to the significant
decrease in revenue of the film exhibition business resulting from the mandatory closure
of the cinemas and the social distancing measures implemented by the government of the
Hong Kong Special Administrative Region caused by the pandemic, which resulted in a
one-off gain of approximately HK$110 million; (ii) the impairment loss of property, plant
and equipment related to movie theatre operation and the impairment loss of right-of-use
assets were recorded at approximately HK$31.1 million last year, and no such impairment
loss was recorded during the year; and (iii) continuous increase in stickiness of social
networking platforms during the year due to the pandemic that more consumers made
purchases online through mobile devices and enjoyed digital entertainment, such as live
broadcast, short video and web drama. As a result, the performance of the group's
pan-entertainment segment grew significantly, including the revenue from agency and
celebrity business as well as the sales of merchandise under self-owned retail brands.
(RC)