Transmit Entertainment Issues Positive Profit Alert

Interim Results Turn Around with Net Profit Expected to Surge to Over HK$40 Million

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HONG KONG, CHINA - Media OutReach - 11 February 2019 – Transmit Entertainment Limited
(“Transmit Entertainment” or the “Company”, together with its subsidiaries, the
“Group”; stock code: 1326) issued today a positive profit alert for, based on
the preliminary review on its unaudited consolidated management accounts for
the six months ended 31 December 2018, the Group is expected to record net
profit of over HK$40 million, turning around from a loss attributable to owners
of the Company of approximately HK$28.9 million for the corresponding period last
year.

 

The outstanding
results were attributable to the increase in revenue from film production and
distribution thanks to the release of the film ”L Storm”, which was a big
success, and also the profit contributed by the wholly-owned subsidiary Khorgas
Houhai Culture Media Company Limited (“Houhai Culture”), which was acquired by
the Group in August 2018, consolidated into the accounts of the Group for the
first time, contributing to the overall performance of the Group.

 

Ms
Zhao Wenzhu, President and Executive Director of Transmit Entertainment, said, “We are committed to developing Transmit
Entertainment into a leading all-round film and TV entertainment provider.
After we acquired Houhai Culture last August, we now hold via it Broadcasting
and TV Program Production and Operation License and intellectual property
rights of variety shows and TV series. That plus the Group kicking off cooperation
recently with several famous artiste management agencies and scriptwriters, giving
it much boosted artiste and scriptwriters resources, the Group has a strong foundation
for producing more quality TV series in the future.

 

“Going
forward, Transmit Entertainment will continue to build its business like a
pyramid with great productions as foundation, projects as pillars and talent on
the top, developing an ‘entertainment pyramid’ with innovation and dedication and
in turn create a new entertainment model. We will tap the huge potential of
film and TV business in Greater China and capture the development opportunities
presented by the consumption upgrade of entertainment content, with the aim of
creating satisfactory returns for shareholders.”

 

About Transmit Entertainment Limited (stock code?1326)

Transmit Entertainment is a media
and entertainment company with a diverse portfolio. Its main businesses including
production, distribution and licensing of variety shows, television series and
films; screening of films; post-production; and advertising, marketing and
publication. The Group mainly produces Chinese films, television entertainment
programs and television drama series for the Hong Kong and Mainland China
markets. It also operates five cinemas and one post-production company in Hong
Kong. Its subsidiary Houhai Culture has a professional film and television
production team particularly adept in producing variety shows and television
drama series, from screenwriting, shooting, post-production to distribution and
marketing. It also owns copyrights to a large number of television drama series
and has been closely cooperating with top-tier broadcast networks and online
streaming platforms.