(Yicai Global) April 29 -- Hengdian Entertainment's terrible first quarter could turn into an abysmal first half as the Chinese privately owned film company's theaters remain shut due to the Covid-19 outbreak.

The losses could stretch out to affect the earnings of the first half, the Zhejiang province-based film producer said in its earnings report published yesterday.

All of the firm's cinemas have been closed since Jan. 24 and the reopening date has not been determined yet, it added. The situation affects the company's short-term performance but not its long-term profitability, it reckoned.

Hengdian Entertainment made a loss of CNY138 million (USD19.5 million) over the first quarter, whereas it had reported a net profit of CNY49.1 million a year earlier. Its revenue slid by 90 percent to CNY91.5 million. The company's cash balance had narrowed by more than 70 percent to CNY79.7 million from the end of last year.

Founded in 2008, Hengdian Entertainment has 37 directly-owned cinemas and more than 80 franchised ones. Its filming base Hengdian World Studios resumed operation this month with more than 20 film crews currently making movies at the tourist attraction.

Hengdian Entertainment's stock price [SHA: 603103] climbed 0.3 percent to CNY14.06 (USD2) soon after opening today.

Editor: Emmi Laine