×
You will be redirected back to your article in seconds

China Problems Push Orange Sky Golden Harvest Into Loss

Orange Sky Golden Harvest, the pan-Asian cinema operator, remains unable to make a profit in China despite booming box office.

The group, which saw profits drop in 2014, shifted into the red in 2015. For the last financial year the group reported losses of US$23.2 million (HK$180 million) compared with profits of $1.68 million (HK$13 million). Revenues across the group rose by 18% to US$165 million (HK$1.28 billion).

The company blamed “increased operating costs of newly opened cinemas for the year and other operating cost in Mainland China.” It pointed to “price sensitive consumers” and said that it needs to “improve the performance efficiency of existing mature cinemas by boosting box and non-box office revenue, as well as implementing cost controls.” It reported only 19% growth in mainland Chinese revenues – from HK$859 million to HK$1.02 billion – at a time when box office growth in China grew by 49%.

Its China operations finished 2015 by selling 21.5 million tickets from its 474 screens at 67 complexes. It finished 2014 with 16.5 million ticket sales from 420 screens at 59 locations.

(Since year’s end, the company has found investors including Tencent’s Weiyang unit and Bison Capital, that will inject US$61.5 million (RMB400 million) into its Chinese theater business, ahead of a possible spin-off of the operation within four years.)

OSGH’s six wholly owned multiplexes in Hong Kong, in contrast, saw exhibition revenues climb from US$27.7 million (HK$215 million) to $33.2 million (HK$257 million). Singapore, where it holds 50% of market leading chain Golden Village, saw exhibition and distribution revenues edge slightly down. But Singapore profits increased to US$7.90 million (HK$61.2 million), from US$6.75 million (HK$52.3 million).

Popular on Variety

More Biz

  • Hopper Reserve

    Dennis Hopper's Dying Wish: His Own Strain of Marijuana

    Even as celebrity brands are starting to flood the emerging Cannabis market, Hopper Reserve stands out. The brand was launched by Marin Hopper, Dennis Hopper’s daughter from his marriage to Brooke Hayward. Hopper Reserve is a gram of California indoor-grown flower, two packs of rolling papers, a pair of matches and a trading card either [...]

  • Snoop Dogg Weed

    In the Cannabis Business, Not All Star Strains Are Created Equal

    With the cannabis green rush in full swing, many celebrities are jumping into the fray with their own brands, including such well-known stoners as Willie Nelson, Snoop Dogg and Tommy Chong. But as it turns out, not all star strains are created equal, so we assembled a trio of crack experts to put the product [...]

  • Richard Branson Jason Felts

    Kaaboo Festival Acquired by Virgin Fest Owner Jason Felts

    Kaaboo, which says it has “shifted the music festival paradigm by offering a highly amenitized festival experience for adults,” is now under new ownership. Virgin Fest founder and CEO Jason Felts (pictured above with Virgin founder Richard Branson) has fully acquired all of the festival brand assets through an affiliate of Virgin Fest, the music [...]

  • Live Nation Chief Michael Rapino Talks

    Live Nation-Ticketmaster Chief Michael Rapino Talks Dept. of Justice Inquiries

    Back in August, Senators Richard Blumenthal of New Jersey and Amy Klobuchar of Minnesota made the most recent of several requests for an Department of Justice antitrust investigation into competition in the ticketing industry, and it soon became clear that the target of the probe was Live Nation and its 2010 merger with Ticketmaster, which [...]

  • Lowell Smokes Cafe Marijuana

    With Cannabis Lounges, On-Site Consumption, Marijuana-Infused Meals Go Legit

    Can this century’s Roaring ’20s repeat history but with pre-rolled joints instead of whiskey flasks and soccer moms as the new flappers? This month, West Hollywood will see the opening of the nation’s first at least quasi-legal cannabis consumption lounge, officially dubbed Lowell Farms: A Cannabis Café, located at 1211 N. La Brea between Fountain [...]

  • 2020 TV Season Preview

    How 2020's Fall TV Season Is Already Shaping Up

    Aiming to stand out in a crowded field, broadcasters this season have leaned on the stability of their schedules and the return of established hits. But for many of the same reasons, they’ve also begun to seed the ground for next year’s crop of shows, considering that top performers like “How to Get Away With [...]

  • Taylor Swift Talks Scott Borchetta’s ‘Sneaky’

    Taylor Swift Talks Scott Borchetta's 'Betrayal,' 'Sneaky' Deal With Scooter Braun

    While Taylor Swift’s sprawling Rolling Stone cover interview is largely about her music and herself, there’s also plenty about the personal and business dramas of the last three years. And not surprisingly, Scooter Braun and Scott Borchetta — who this summer inked a reported $300 million deal for the Big Machine Records catalog and with [...]

More From Our Brands

Access exclusive content