(Yicai Global) March 11 -- Chinese cinema operator Wanda Film Holding plans to issue up to CNY2 billion (USD288 million) in bonds to help raise cash and rebound from Covid-19's impact on the sector.

The Beijing-based firm will use the money to repay existing debts, replenish working capital and maintain operators, it said in a statement yesterday, adding that it may use some to invest in new projects. The firm will also offer the same amount in joint-liability guarantees to its wholly owned units and the subsidiaries it controls.

Shares in the company [SHE:002739] slipped this morning but were up 4.4 percent at CNY18.88 (USD2.72) as of 2.34 p.m.

Wanda's revenue tallied CNY15.6 billion (USD2.2 billion) last year, down 4.2 percent from 2018 as earnings plummeted to a CNY4.7 billion loss from a CNY1.6 billion profit, according to its financial report published Feb. 28. A major factor in the deficit was goodwill impairment provisions, which the firm pegged at CNY5.9 billion, while box office takings totaled CNY8.8 billion to give Wanda a 13.8 percent market share, the largest in the sector.

The entire film industry has been struggling this year, largely down to the novel coronavirus pushing back new releases and closing cinemas.

"Losses from Covid-19 could equal about 20 percent of this year's income," The Paper cited a market insider as saying. "This could rise to 30 percent for small- and medium-sized operators in third- and fourth-tier cities."

Editor: James Boynton