(Yicai Global) Jan. 30 -- Beijing Hualu Baina Film & TV, a major Chinese producer of movies and television shows, fell into the red last year after selling two underperforming production units at a loss.
The full-year net loss was CNY3.3 billion (USD491.2 million), the Beijing-based company said in a statement yesterday. The figure is far higher than the total CNY1.1 billion net profit the firm has earned since listing in 2012.
Hualu Baina attributed the poor showing to its December divestment of two variety show production units. It lost CNY1.6 billion selling Beijing Blue Flame Entertainment Culture and Kashgar Blue Flame Culture Media after paying CNY2.5 billion to acquire them. Revenue at the firms fell quickly after much-expected investment failed to materialize. Blue Flame had a CNY476 million (USD70.9 million) loss in the January to October period.
Shares of Hualu Baina [SHE:300291] fell yesterday, but recovered some ground today, gaining almost 0.5 percent to close at CNY4.44 (66 US cents).
The company said it will postpone providing variety shows and content marketing services to clients with unstable business performances to control operating risks and accelerate turnover of accounts receivable. The dramatic drop in income from content marketing services was another reason for last year's loss, it added.