Financial Analysis Report: Spackman Entertainment Group Limited (Net Profit Decline: USD 348,971)
Company Overview
Spackman Entertainment Group Limited is a company engaged in the entertainment industry, specifically in film production and related activities. The company’s core business operations include producing and distributing films, as well as managing its intellectual property.
Business Description and Industry Position
The company operates primarily in the entertainment industry, with a focus on film production and distribution. Its geographic footprint appears to be global, with operations in various regions.
Revenue Streams and Customer Base
The company’s revenue streams are not explicitly stated in the report; however, it is mentioned that the Group’s cash flow projections primarily depend on the collection of short-term loans from associated companies and third parties, as well as the positive performance of its film production business, particularly from movies scheduled to be released within the next 12 months.
Financial Performance Analysis
Income Statement Analysis
The company’s net loss for the financial year ended December 31, 2024, was USD 348,971, compared to a net loss of USD 8,682,215 in the previous year. The significant decrease in net loss indicates a positive trend.
Balance Sheet Analysis
The Group’s net assets and net current assets as at December 31, 2024, were USD 20,532,496 and USD 1,390,376, respectively. The company’s financial position appears to be stable, with a strong balance sheet.
Cash Flow Statement Analysis
The Group incurred an operating cash outflow of USD 2,277,246 for the financial year ended December 31, 2024, compared to USD 5,470,404 in the previous year.
Key Findings and Risks
The Group’s ability to continue as a going concern is uncertain due to its net loss and operating cash outflow.
The company’s cash flow projections depend on the collection of short-term loans and the positive performance of its film production business.
The fair value of investment in an associated company, Spackman Media Group Limited (“SMGL”), is a key source of estimation uncertainty.
Important Information for Investor Action
The company’s net loss decreased significantly to USD 348,971 from USD 8,682,215 in the previous year.
The company’s management believes that the going concern basis of preparation of these financial statements remains appropriate.
Dividend and Earnings Information
No dividend information is available in the report.
Special Activities to Improve Profitability
The company is taking measures to ensure the timely release of films, including the movie “The Apple of my Eye,” which was released in February 2025.
Conclusion and Recommendation
Based on the analysis, the company’s financial performance shows a positive trend, with a significant decrease in net loss. However, the uncertainty surrounding its ability to continue as a going concern is a major concern.
Recommendation for Current Shareholders:
Hold the stock, but closely monitor the company’s cash flow and liquidity position.
Recommendation for Potential Investors:
Exercise caution when considering investing in the company due to the uncertainty surrounding its ability to continue as a going concern.
Disclaimer: This recommendation is based solely on the information provided in the report and should not be considered as investment advice.
Report Details
Date of Report: Not specified
Financial Year: 2024
The report provides an independent auditor’s opinion on the financial statements of Spackman Entertainment Group Limited for the financial year ended December 31, 2024. [[Page 1]]
Overall, investors should carefully evaluate the company’s financial performance, cash flow projections, and management’s plans to address the uncertainty surrounding its ability to continue as a going concern before making an investment decision.
View Spackman Historical chart here
