Guomai Culture & Media Co.Ltd(301052) 4 issued an announcement on April 6. According to the preliminary calculation of the company’s financial department, the loss of the company’s investment in the film “Four Seas” is about 7 million yuan to 9 million yuan (there may be error in the final settlement data). The expected loss accounts for more than 10% of the audited net profit of the listed company in the latest fiscal year, and the absolute amount exceeds 1 million yuan.
According to the announcement, Guomai Culture & Media Co.Ltd(301052) 2021 held the second meeting of the second board of directors on February 8, 2021, considered and approved the application for film investment, and signed the film investment cooperation agreement with Shanghai Tingdong Film Co., Ltd. on February 9, 2021, invested 13 million yuan to buy 5% of the investment share of the new film (later named “Four Seas”). The film is released in Chinese mainland since February 1, 2022.
According to the data of the National Film Office, the release of the screening was completed at 24 hours as of April 3, 2022. The box office receipts in Chinese mainland are based on the official confirmation of the cinemas in Chinese mainland. Meanwhile, the copyright sales revenue and the distribution income of overseas films in Chinese mainland have not yet been settled.
For the reasons for the loss, Guomai Culture & Media Co.Ltd(301052) said that “the box office did not meet expectations”. In terms of the impact on the company, Guomai Culture & Media Co.Ltd(301052) said that it would not affect the company’s daily business activities, and the financial instruments would be accounted for in accordance with the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments. The impact on the annual profit in 2022 would be subject to the actual profit and loss of the final settlement.
