‘Crazy Rich Asians’ producer cuts first-half losses

‘Crazy Rich Asians’ producer cuts first-half losses

Gaming promoter Starlight Culture Entertainment Group Ltd reported a HKD30.4 million ($3.9 million) net loss for the first six months of 2018, a significant improvement from last year’s HKD240.9-million ($30.7-million) loss for the same period.

‘Crazy Rich Asians’ producer cuts first-half lossesIn a filing to the Hong Kong Stock Exchange, the company said, “The decrease in loss of approximately HK$209.2 million [$26.6 million] was mainly attributable to the gain on change in fair value of derivative financial liabilities of approximately HK$36 million [$4.6 million]” during the period, as compared to last year’s HKD152-million ($19.4-million) loss. Apart from this, Starlight also cited “the decrease in impairment losses and increase in reversal of impairment losses of approximately HK$28 million [$3.6 million].”

Starlight said it expected “that income from media and culture business segment and related film licensing and investing income will contribute operating cash flows to the Group in the coming years,” and noted the August release of ‘Crazy Rich Asians,’ which the company is a producer of. “As the first adapted work of the novel series, there is also expectation for it to develop into commercially successful film series where the stories of the two sequels mainly take place in China,” according to Starling.

The company posted a gross profit of HKD793,000 ($101,000) for the first half of 2018, as compared to last year’s first-half gross loss of HKD3.6 million ($459,000). Revenue for the year until the end of June was HKD16.7 million ($2.13 million), 17.2% lower than last year’s HKD20.2 million ($2.6 million) for the corresponding period.

Starlight, formerly known as Jimei International Entertainment Group Ltd, derived most of its revenue from its chemical, energy conservation and environmental protection products business, posting HKD16.3 million ($2.1 million) revenue for the half. Entertainment and gaming business revenue was only HKD402,000 ($51,000), down from last year’s HKD8.5 million ($1.1 million) revenue for the corresponding period.

The company also said it “is actively considering raising new capital by obtaining new borrowings and carrying out fund raising activities including but not limited to rights issue, open offer, placing of new shares and issuance of other convertible bonds.”

In June 2017, Starlight, then still known as Jimei, scrapped plans to participate in what was revealed to be the operation of around 30 VIP tables at the Wynn Macau Casino. This came shortly after Jack Lam’s resignation and selling of his majority stake in the company to Cosmic Leader Holdings.