Orange Sky Golden Harvest Entertainment (Holdings) Limited Issues Positive Profit Alert for FY2025

Key Highlights

• Expected Turnaround: The Group is expected to record a net gain attributable to shareholders of not less than HK\$50 million for the year ended 31 December 2025, compared to a net loss of HK\$243 million for the year ended 31 December 2024.
• Major Contributors to the Profit:
  • Non-recurring net gains of approximately HK\$19 million and HK\$86 million arising from reversal of reinstatement cost provisions and lease modifications, respectively, due to termination of certain cinema leases.
  • Income tax credit of HK\$33 million from reversal of deferred tax liabilities linked to the disposal of a Singapore property.
  • Significant reduction in impairment losses on non-financial assets, from HK\$442 million in 2024 down to not more than HK\$130 million in 2025.
  • Net gain on disposal of a property in Singapore amounting to HK\$16 million during 2025.
  • Decrease in operating expenses due to cost reduction initiatives, temporary rental support, and closure of Hong Kong cinema operations.
• Absence of Prior-Year Gains: The Group recorded a non-recurring net gain of HK\$294 million from the disposal of its interest in a joint venture in 2024, which will not recur in 2025.
• Ongoing Preparation: The annual results for 2025 are still being prepared and the figures are based on unaudited management accounts. The final results will be subject to review by auditors and may be adjusted.

Price-Sensitive Information for Shareholders

• Major Financial Turnaround: The expected swing from a substantial loss in 2024 to a notable profit in 2025 is a significant development and may impact share valuation and investor sentiment.
• Cost Reduction and Cinema Closures: The closure of Hong Kong cinema operations and overall cost reduction have contributed to improved profitability, but may affect the Group’s future revenue base and operational footprint.
• Non-Recurring Gains: Several one-off gains (lease terminations, property disposals, deferred tax reversals) have contributed to the profit, which may not be sustainable for future periods.
• Impairment Losses: The reduction in impairment losses is a key driver for the turnaround, but any future asset revaluations could impact subsequent results.
• Advisory to Investors: Shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s securities, as the figures are preliminary and subject to adjustment.

Additional Details

• Board and Leadership: As of the announcement date (19 March 2026), the Board includes Chairman and Executive Director Mr. Wu Kebo, Executive Directors Ms. Chow Sau Fong, Fiona, Mr. Go Tomohiro, Mr. Peng Bolun, Ms. Kong Minru, and Independent Non-executive Directors Mr. Leung Man Kit, Ms. Wong Sze Wing, and Mr. Fung Chi Man, Henry.
• Regulatory Disclosure: The announcement was made pursuant to Rule 13.09(2) of the Listing Rules and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance.
• Future Announcements: Detailed audited financial information for FY2025 will be published in due course as required by the Listing Rules.

Investor Takeaway

Orange Sky Golden Harvest Entertainment (Holdings) Limited is poised for a substantial financial recovery in FY2025, driven by a combination of non-recurring gains, cost reductions, and lower impairment losses. However, investors should note that several of these gains are one-off in nature, and the closure of cinema operations may impact the company’s long-term business prospects. The preliminary nature of the figures and possible adjustments upon audit warrant caution in investment decisions.

Disclaimer: The information presented is based on preliminary unaudited management accounts and other currently available data. Final audited results may differ. This article does not constitute investment advice. Investors are strongly advised to conduct their own due diligence and consult professional advisors before making investment decisions regarding Orange Sky Golden Harvest Entertainment (Holdings) Limited.

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