Losses at Hong Kong studio: Golden Harvest increased by 34.5% to $3.1m (HK$23.96m) in the six months to December 31, 2001, compared to $2.3m (HK$17.81m) for the same period the previous year.

However, at the same time group turnover increased during the second half of 2001, by 8% to $17.6m (HK$137m), compared to $16.3m (HK$127m) in the second half of 2000.

The company attributed the losses to a downturn in the level of fees generated by its production and film processing divisions. Income from film production was down by 67% to $367.000 (HK$2.86m), compared to $1.1m (HK$8.58m) in the second half of 2000. Film processing income dropped by 43% to $833,000 (HK$6.5m).

The group's distribution division performed strongly with a 42% increase in revenues to $4.4m (HK$34m). Exhibition income remained flat at $10.4m (HK$81m). The biggest revenue growth came from new business areas, such as music production, video distribution and public relations, which brought in $1.6m (HK$12.1m) compared to $205,000 (HK$1.6m) in the second half of 2000. However the new divisions also incurred costs of $1.1m (HK$8.5m).

Golden Harvest distributed 13 Chinese and 23 non-Chinese movies in the second half of 2001 and its share of the total box office was up 23% to $4.5m (HK$113m). The company has also become more active in distributing other Asian language films such as Thai title Jan Dara which grossed a healthy $970,000 (HK$7.56m) during a six week run at the Hong Kong box office starting last October.