Due to Malaysia’s indefinite movement control order (MCO) restrictions, GHY Culture & Media announced that the filming and production activities for its drama series Sisterhood is delayed, as well as another drama series, which was set to film and produce in Malaysia in 3Q2021.
Nonetheless, given the group's strong relationship with the relevant customer, the parties have agreed on the revised production and release timeline for the drama series and the group will be able to continue fulfilling its contractual obligations under its relevant product contract.
See also: GHY Culture & Media seeks to acquire 51% stake in Clover Films
To that end, certain filming and production activities for Sisterhood have been moved to China, and in the event of a prolonged extension of the MCO in Malaysia, the group may continue to carry out filming and production activities in China instead to ensure minimal disruption to its schedules and workplace safety.
Due to the delays in the group's production timeline for 2021, it also expects to record certain revenue from its drama and film projects only in 2022, in line with its revenue recognition policy. As a result, the group expects its financial performance for FY2021 ending Dec 31 to be impacted.
Nonetheless, the group says that its business fundamentals remain robust and is on track to deliver its long-term growth strategies, with a focus on expanding its regional presence, diversifying its pipeline portfolio of entertainment content and driving synergies across the existing core businesses.
The group is in the midst of finalising its half-yearly interim financial results for the six months ended June 30.
For more stories about where the money flows, click here for our Capital section
As at July 13, shares in GHY closed at 68 cents.
Photo: Albert Chua/ The Edge Singapore
