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| Thursday, 30 August 2012, 08:00 HKT/SGT | |
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Source: IMAGI | |
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| Builds a World Class Media and Entertainment Company by Unlocking Significant Values of "Pleasant Goat and Big Big Wolf" |
HONG KONG, Aug 30, 2012 - (ACN Newswire) - IMAGI International Holdings Limited ("IMAGI" and together with its subsidiaries, "the Group"; HKSE Stock Code: 585) today reported its unaudited condense consolidated interim results for the six months ended 30 June 2012.
Interim Results for the six months ended 30 June 2012
The Group reported the following:
-- Total revenue amounted to HK$78.6 million, representing an increase of 11% compared with the last corresponding interim period for the 6 months ended 30 September 2011 (the "Last Comparative Period")
-- The loss before interest, tax, depreciation and amortization for the period was HK$7.7 million, compared with HK$2.3 million for the Last Comparative Period
-- After taking into account, among others, the amortization of intangible assets and the related reversal of the deferred tax liabilities of HK$37.4 million (2011: HK$37.8 million), loss for the period amounted to HK$52.8 million, compared with HK$46.7 million for the Last Comparative Period
-- The Group streamlined operation by closing its Chai Wan office and relocating the brand management team to Guangzhou, which resulted in an one-off cost of HK$10.5 million. The Group expects to achieve significant cost savings in the second half of 2012 and beyond
-- Box office revenue derived from "Pleasant Goat and Big Big Wolf Movie 4" set a record among domestically produced animation films, reaching RMB168 million in mainland China.
-- The Group disposed of its 20.63% equity interest in an associate, Sino Light Enterprise Limited ("SLE") to focus on core activities on 14 March 2012, resulting in a gain of HK$7.7 million
-- The Group has worked closely with its global master licensee, Disney Enterprises, Inc ("Disney"), under the Consumer Products and Related Use Agreement ("CPA") to upgrade the quality of its sub-licensees. During the six months ended 30 June 2012, 47 sub-licensees were terminated, 17 were renewed and 7 new sub-licensees were added
-- As of 26 August 2012, box office revenue of summer movie "I Love Wolffy" has already exceeded RMB 70 million
Strong Financial Position and Debt-free
-- Bank balances amounted to HK$263.1 million and a current ratio of 10.7 as at 30 June 2012
-- The Group had no bank or other borrowings and therefore a zero gearing
Mr Francis Leung Pak To, Chairman of IMAGI, said, "IMAGI has been under new management since the appointment of Mr. Steven Yung as the Deputy Chairman and Chief Executive Officer, effective on 1 April 2012. Given that China is the most important market for the Group, the new management has streamlined our operations and moved our key business functions to mainland China. This strategic move has brought our team much closer to our key partners and target consumers. This integration effort has created a more efficient organization and developed a stronger corporate culture."
In the second quarter of 2012, the Group closed down the operation for production services on CGI animation pictures in Hong Kong and relocated the brand management team to Guangzhou. As a result of this restructuring exercise, the Group expects to achieve significant cost savings in the second half of 2012 and beyond.
Mr. Steven Yung Tse Kwong, Deputy Chairman and CEO of IMAGI, said, "Given the continued success of our core brand, the multi-channel distribution platform of our strategic partner, Creative Power Entertaining LLC ("CPE"), the creativity of CPE's indigenous production team, and Disney's global resources and merchandising expertise, we are well positioned to benefit from the rapidly growing consumer market in China.
Our three-pronged growth strategy mentioned below, together with the streamlining exercise conducted, has placed the Group squarely on the path to operational profitability before the annual amortization of intangible assets and the reversal of the corresponding deferred tax liabilities."
Partnering with CPE to bring out the best of its market leading cartoon characters
To leverage the consecutive success of Pleasant Goat and Big Big Wolf movies during the last four Chinese New Years, a new movie "I Love Wolffy" was launched on 10 August 2012. An additional movie based on another animation brand owned by CPE, Happy Family, will be launched in October, being another high box office period of the year in mainland China. These efforts are part of the Group's strategy to become a multi-brand entertainment group.
Partnering with Disney to upgrade the quality of sub-licensees
Disney has assisted TE Group to upgrade the quality of its sub-licensees by reviewing their credit worthiness, reputation and quality of their products. Most of the new or renewed licensing contracts only came into effect in 2012. The Group strongly believes that this partnership will bring positive impact on its brands' value and bring increased economic benefit in the future.
Partnering with movie partners and Disney to implement trade marketing campaigns
Partnering with movie partners and Disney, the Group work closely with leading cinema chains, supermarket chains, and toys retail chains via trade marketing campaigns to capitalize on the strength of the Pleasant Goat and Big Big Wolf brand and to increase consumer traffic for participating retailers and cinema chains.
Contact:
IMAGI International Holdings Limited
Hilde Wong, +852 3679 3983, hilde.wong@toonexpress.com
Website: www.imagi.com.hk
Strategic Financial Relations Limited
Heidi So, +852 2864 4826, heidi.so@sprg.com.hk
Mandy Go, +852 2864 4812, mandy.go@sprg.com.hk
Roby Lau, +852 2114 4950, roby.lau@sprg.com.hk
Cornia Chui, +852 2864 4853, cornia.chui@sprg.com.hk
Fax: +852 2527 1196
Website: www.sprg.com.hk
Topic: Earnings
Source: IMAGI
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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