The latest: Producer of television dramas Linmon Media Ltd. (9857.HK) said On Friday, the company expected a net loss of between 50 million and 55 million yuan ($7 million) for the first half of the year, compared to a profit of 131 million yuan in the same period last year.

Look up: The company’s management emphasized that Linmon currently has strong cash flow and a stable financial position.

Please note: The company said the decline into the red was mainly due to the postponement of the broadcast of a drama series originally planned for the first half of 2024 to the second half of the year due to scheduling issues. Accordingly, the realization of sales and profits related to the series will be postponed to the second half of 2024.

Dig deeper: Founded in Shanghai in 2014, Linmon focuses on investment, production, distribution, promotion and derivative licensing of TV series. The company relies on Tencent (0700.HK) as its main customer and not only licenses shows for Tencent’s video platform but also produces commissioned shows for the tech giant. Tencent became a shareholder of Linmon before the IPO and currently holds about 19% of the company. Linmon will list in Hong Kong in 2022, raising net proceeds of HK$320 million (US$41 million).

Market reaction: Linmon shares plunged at the opening of trading on Monday and closed down 10.3 percent at HK$5.16 by lunchtime, a new 52-week high.

Translation by A. Au

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