China Ruyi stares at 259m yuan loss

China Ruyi (0136) expects to record a net loss of between 259 million yuan (HK$279 million) and 269 million yuan for the first half of the year. That compared with a profit of 147 million during the same period last year, the film and TV drama producer said in a filing yesterday.

The decline in its financial result was mainly due to the fixed costs incurred by the company in various segments for business development plans in the second half of the year and the coming year, the Tencent (0700)-backed firm said.

Earlier last month, China Ruyi agreed to buy a 49 percent stake in developer Dalian Wanda's investment arm for 2.26 billion yuan. The firm said it expects to release a number of films and TV dramas in the second half of the year and next year, which will bring considerable revenue and profit. It also expects to see growth in its gaming business in the second half.