GHY Culture & Media has kept up with its steady share buybacks from the open market. The most recent acquisition was on Aug 29, when it acquired 2,300 shares at 36.5 cents each. This brings the total number of shares bought back under the current mandate to 604,200 shares or 0.057% of the company’s share base.
Before the latest transaction, GHY had bought back shares on most trading days after it announced its 1HFY2023 ended June earnings on Aug 7.
On Aug 23, 24, 25 and 28, it acquired 3,300 shares at 36.6 cents each, 3,300 shares at about 36.7 cents each, 38,300 shares at about 36.5 cents each and 42,300 shares at about 36.5 cents respectively.
In 1HFY2023, GHY, which produces dramas and organise concerts, recorded a revenue of $32.7 million, up 58% y-o-y, as it booked more revenue from organising concerts and drama production. However, it remained in the red with a loss of $1.9 million, versus losses of $1.8 million incurred for 1HFY2022.
GHY attributes the losses to a weaker renminbi, in which it receives its revenue, versus its reporting currency, the Singdollar. According to GHY, if the forex losses of some $3.4 million recognised were disregarded, it would have reported earnings of $1.5 million for 1HFY2023.
“While the foreign exchange loss recorded in 6M2023 has outpaced our operational profitability, we remain optimistic for FY2023 with our strategic priorities and plans ahead,” says executive chairman Guo Jingyu in his earnings commentary, adding that the company expects to achieve turnaround and profitability for the current FY.
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On Aug 28, GHY announced that Beijing Changxin Film & Media, an indirect associate, had entered into a co-production agreement with Shanghai Tencent Penguin Film & Culture Communication, which is under China’s internet giant Tencent Holdings.
Under the agreement, the parties have agreed to co-produce a drama series titled “Contenders”. Production will start in November. As described by GHY, the drama series forms part of GHY’s pipeline of dramas and films as it continues to strive to deliver quality entertainment content through its in-house script production team that developed the script.
“The company believes that the co-production of this drama series is a testament to the group’s strong partnership with Tencent Video.
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“Over the years, the group has built up an established network of business relationships and partnerships with key industry players in the media and entertainment industry which forms an integral part of the group’s business expansion and the execution of its long-term growth plans,” adds GHY.
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GHY Culture & Media and MindChamps PreSchool
Doubling the money
Catherine Du, a substantial shareholder of MindChamps PreSchool, has sold all 70,000 shares she held directly, having doubled her money after holding the shares for just over four months. On Aug 21, Du sold these 70,000 shares at 29 cents each on the open market. She had bought the same shares on April 6 at 15 cents each.
Despite the sale, Du is still a 35.77% owner of an entity called Champion Minds, which, in turn, holds 126.6 million MindChamps shares, equivalent to just over 52% of the company.
On Aug 10, MindChamps PreSchool, which offers preschool education across the region, reported earnings of $7.1 million in 1HFY2023 ended June, a surge of 379% y-o-y over $1.49 million reported in 1HFY2022. Revenue was up 11% y-o-y to $35.2 million as the company was able to book more franchising fees.
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MindChamps, under executive chairman and controlling shareholder David Chiem, is actively growing via an asset-light franchising model instead of owning and operating its own schools.
The company recently appointed another master franchise licence for Western Australia, with a flagship centre that is scheduled to open in Perth in 1Q2024. It is also on track with its US expansion and is now registered in every major state.
