Lai Sun Development's 50.48 per cent owned eSun Holdings will reinvent itself as a film, media and satellite-television operator in a bid to become profitable by next year, according to executive director Mark Lee Po-on.
The company, formerly Lai Sun Hotel International, had been shifting its business since June last year, when it engaged in a HK$1.08 billion asset swap with its parent, Lai Sun Garment (International).
Under the restructuring, Lai Sun Hotels transferred its hotel and property assets to its parent. In return, the parent injected its 9.87 per cent stake in Sunday Communications and other technology-related assets into Lai Sun Hotels.
Mr Lee said eSun would remain in the red until the end of this year and would make a further provision for depreciation of its Sunday stake and losses incurred from earlier hotel disposals.
He said a provision of HK$90 million had already been made for the decline in value of its investment in Sunday last year.
ESun reported a net loss of HK$305.65 million for the year to December 31, 2000. Mr Lee believed its performance would improve in view of its 39 per cent-owned Media Asia, a film producer and distributor that already contributed to profits.
He expected advertising revenue would be generated from East Asia Satellite Television, due to be launched this month.