Alibaba Pictures Group is reporting that their 2016 calendar year is looking at a loss in the vicinity of $137 million to $140 million. They’re siting start-up and promotional costs of their online ticketing business, Tao Piao Piao, as the cause.
The company, which is controlled by Chinese e-commerce giant Alibaba, issued a profit warning to its shareholders saying:
The Board wishes to inform the Shareholders and potential investors that, based on the preliminary assessment by the Board of the latest unaudited consolidated management accounts of the Group, it is expected that the Group will record net loss in the range of RMB950 million to RMB1 billion for the year ended December 31, 2016. Shareholders and potential investors should exercise caution when they deal or contemplate dealing in the shares or other securities of the Company.”
Profits made in 2015 turned to loss in the first two quarters of 2016.