Bingo Group has announced that its wholly-owned subsidiary, Wai Shing Limited, sold the entire issued share capital of Bingo Cinema Investment Limited for HK$1, with the transaction completed upon signing of the agreement, according to a report by Red Star Capital Bureau on October 9.

The disposed group was primarily engaged in the cinema business in mainland China and recorded unaudited net liabilities of approximately HK$8.6 million as of August 31, 2026, excluding intercompany loans.

Bingo Group expects the disposal to generate a book gain of approximately HK$5.4 million, and following the completion of the transaction, the group will no longer be engaged in the cinema business.

Public information shows that Bingo Group is an investment holding company incorporated in the Cayman Islands. Stephen Chow joined the group in June 2010 and currently serves as an executive director and substantial shareholder. Among the board members, Chow Man-kay is Stephen Chow's sister and also serves as an executive director. In other words, this company is a listed platform effectively controlled by Stephen Chow and his family.

In explaining the rationale for the disposal in its announcement, the board of directors of Bingo Group stated that "after considering the financial performance of the disposed group and reviewing its business and operating conditions, the board considers it appropriate for the group to proceed with the disposal." By divesting the persistently underperforming cinema assets, the group aims to reduce its financial burden and refocus resources on core areas such as film content development.

According to Tianyancha, Bingo Cinema (Shanghai) Co., Ltd. was established in June 2011 with registered capital of 6 million yuan, and its business scope includes film screening, among other things. It is currently registered as in existence. Shareholder information shows that the disposed Bingo Cinema Investment Limited held 75% equity in the company, while Yin Gang held 25%. External investment information shows that Bingo Cinema (Shanghai) Co., Ltd. wholly owns Hangzhou Lin'an Bingo Cinema Co., Ltd., which was established in November 2011 with registered capital of 500,000 yuan and is also currently registered as in existence.

Bingo Group was established in February 2010 when Stephen Chow took over the shell company Di Tong International. The company initially planned to produce 10 to 20 films, open multiple cinema chains in second- and third-tier cities in mainland China, and build a post-production base for film and television. At that time, domestic box office revenue was growing rapidly, and a wave of new cinema construction swept across the country. Bingo Cinemas successively opened outlets in cities such as Shanghai and Hangzhou, attempting to build a chain cinema brand leveraging the influence of Stephen Chow's IP.

However, after the industry boom faded, store operations came under sustained pressure. The Bingo Shanghai outlet was the first to close in May 2023, and the Hangzhou cinema was also shut down for an extended period due to renovation work. Just one month before this asset sale, the last remaining Bingo Cinema in mainland China was officially closed.

Judging from the financial report data for the 2026 fiscal year, the cinema business had long become a segment dragging down Bingo Group's performance. Bingo Group's business is divided into two operating segments: cinema investment and management, and film entertainment, new media development and licensing. The cinema investment and management segment was the only segment among all of the group's business divisions to record a decline in revenue. In that fiscal year, the cinema investment and management segment recorded revenue of HK$2.251 million, compared with HK$2.747 million in the previous fiscal year, a year-on-year decrease of approximately 18%. The cinema business recorded an operating loss of approximately HK$1.2 million during the fiscal year, and the target company was in a net liability position.

It is worth noting that although Bingo Group's cinema business performed poorly, Stephen Chow's personal works achieved new box office breakthroughs. According to statistics from Maoyan Professional Edition, as of September 11, the cumulative mainland box office of works directed by Stephen Chow exceeded 8 billion yuan, with titles such as "The Mermaid," "Journey to the West: Conquering the Demons," and "Kung Fu Women's Football" forming the main box office drivers. Among them, "The Mermaid" grossed 3.392 billion yuan and once set a record for mainland box office history, while the summer release "Kung Fu Women's Football" took in approximately 2.315 billion yuan, helping him cross this milestone. (This article does not constitute any investment advice, and investors bear the risks of any actions taken based on it.)