Unusual company letter to shareholders (who now realise the volatile nature of this business and there should be a significant discount to the stock):
"We recognise that the recent decline in the value of our stock is primarily due to the weak box office performances of the Company’s 2014 films, which led to a lossmaking year in our first year as a listed company. It is definitely not an ideal situation for any newly listed company and we understand that this is a significant cause of concern to our shareholders. Therefore, we feel it is our obligation to point out to our shareholders that, despite the expected losses for the financial year ended 31 December 2014 (“FY2014”), the Group continues to maintain a strong operational and financial position, with relatively minimal debt, which enables us to
ride-out the fluctuating nature of the movie business. This is the very reason that we listed the Company in the first place. The Company has experienced and overcome such fluctuations in certain years in the past, and this is not uncommon in our industry. We may not make money on every single film we make, but on the other hand, one commercially strong film can improve our financial performance.
"Our recent string of acquisitions of Novus Mediacorp Co., Ltd., UAA Korea Co., Ltd.and noon pictures Co., Ltd. will also start to be reflected in the Group’s financials from this year onwards, and the Company expects the recently acquired businesses to stabilise the Group’s overall fiscal performance."
