22nd June 2020 – (Hong Kong) Next Digital Limited owned by Jimmy Lai has been reporting losses for 5 consecutive years. The company announced today that the total shareholders’ losses for the full year ended 31st March this year exceeded HK$415 million, an increase of 22.68% year-on-year, while the cumulative losses in the past five years exceeded HK$1.9 billion.
Over the past 10 years, the company has accumulated losses of more than HK$2.7 billion. According to Next Digital’s performance report, during the period, the company’s total revenue fell 11% year-on-year to HK$1.158 billion. Despite the fact that the management has expanded its digital business, a loss of HK$124 million was still reported.
The printing business suffered a significant loss, expanding 1.18 times to more than HK$285 million. The basic loss per share was 15.8 cents, and the company did not distribute a final dividend. Analysts believe that the company digital business is difficult to sustain growth due to paywall subscriptions. On the other hand, advertising revenue is shrinking, and it is worried that its stock price will drop further.
If its share price falls below the threshold of HK$0.1, the signal of a downward decline will be very large, investors are advised not to buy the stock. Next Digital’s share price fell 1.82% today to close at HK$0.108.