China's Wanda Film Slumps on First-Half Loss Alert
Zhang Yushuo
DATE:  Jul 15 2020
/ SOURCE:  Yicai
China's Wanda Film Slumps on First-Half Loss Alert China's Wanda Film Slumps on First-Half Loss Alert

(Yicai Global) July 15 -- Shares of Wanda Film Holding tumbled today after one of China’s largest cinema chain operators warned investors about losses for the first half of the year due to the Covid-19 pandemic.

Wanda's stock price [SHE: 002739] fell 5.6 percent to CNY19.65 (USD2.80) this morning. It had risen 7.9 percent yesterday to the highest since the pandemic began, before the loss warning was issued.

The entertainment company expects to report CNY1.6 billion (USD228.5 million) in net loss over the six months as its more than 600 cinemas have been shut since late January amid the epidemic, the Beijing-based firm said in a statement after the market closed yesterday.

Moreover, the company's overseas cinema operations have been stalled since March, it added. Screenings of Wanda Film's key releases, including Detective Chinatown III, have been halted and some production plans delayed.

But the firm had high hopes of returning to normal. Consumer demand for movies will gradually recover, along with the firm's production capacity and operation, as well as the movie industry, it added.

In the first quarter, Wanda Film was still profitable at CNY599.4 million (USD85.6 million) in net profit. It had CNY1.3 billion in revenue.

Editor: Emmi Laine

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Keywords:   Wanda Film,cinema,film,profit