On April 30, GLONGHUI | Alibaba Pictures (01060.HK) announced that the company expects net profit attributable to the owners of the company for the fiscal year ending March 31, 2024 (fiscal year 2023/2024) to be no less than RMB 260 million, while the net loss attributable to the owners of the company was recorded in the previous year of approximately RMB 291.1 million. The Group's overall revenue for the 2023/2024 fiscal year is expected to increase by more than 40% compared to the 2022/2023 fiscal year.
If the barley acquisition happens on April 1, 2022 or 2023, the Group's adjusted EBITA for the 2023/2024 fiscal year will not be less than RMB 1 billion, an increase of more than 700% over the previous year.
The Board of Directors believes that compared to the 2022/2023 fiscal year, the main reasons for the Group's loss to profit include (i) the strong recovery of the offline entertainment business in the 2023/2024 fiscal year, and a significant year-on-year increase in the total number of movies in the country; and (ii) the Group's excellent business performance, and a sharp increase in the number of high-quality films participating in production and distribution over the same period last year.
The Board believes that the main reasons for the narrowing of net profit for the 12 months ended March 31, 2024 compared to the six months ended September 30, 2023 include but are not limited to (i) continued absorption of relevant investment costs in the second half of the 2023/2024 fiscal year due to the Group's continued commitment to investing in its content business; and (ii) due to prudential considerations to make provision for impairment of certain of the Group's accounts receivable.
The Group has sufficient cash reserves and an adequate reserve list of movies and TV series. In the future, the Group will continue to lay out all types of entertainment content in depth, improve the production capacity of various categories of content such as movies, series, and live performances, and steadily export high-quality content to the market; expand the scope of technology platform services and explore various business forms such as AIGC; at the same time, further consolidate scale advantages and competitive barriers by expanding the influence of barley in the live entertainment industry value chain.