For just HK$1, Stephen Chow has put a price tag on his cinema business.

Bingo Group disclosed a transaction announcement on October 6, revealing that its wholly-owned subsidiary entered into a sale and purchase agreement with a buyer to sell the entire issued share capital of a wholly-owned subsidiary for a consideration of HK$1.

The company in question is primarily engaged in cinema operations in mainland China and recorded an unaudited net liability (excluding intercompany loans) of approximately HK$8.6 million as of August 31, 2026.

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 major shareholder. Among the board members, Chow Man-kai 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.

Prior to the completion of the sale, Bingo Group's main businesses included film entertainment, new media development and licensing, as well as cinema operations. The target company being sold is precisely the entity within the group responsible for mainland cinema operations.

According to the announcement, based on the unaudited net liabilities of the disposed group (excluding intercompany loans) as of August 31, 2026, minus the consideration, the estimated gain attributable to owners of the company from the disposal is approximately HK$5.4 million.

This means that through this transaction, Bingo Group will remove approximately HK$8.6 million in net liabilities from its consolidated statements while recognizing a book gain of approximately HK$5.4 million, although this gain does not represent a cash inflow.

After the transaction is completed, Bingo Group will no longer be engaged in cinema operations, which means that for Stephen Chow, he has formally exited the mainland cinema business.

In fact, there were early signs of the sale. On August 24 this year, the Hangzhou Bingo Cinema Dahe branch issued an announcement stating that due to the expiration of its lease contract, the venue would cease operations starting September 25, and member card refund registration would be processed simultaneously. This cinema, which had been operating for 15 years, was Bingo Group's only cinema in mainland China.

According to Bingo Group's fiscal year 2026 annual report, the cinema business generated revenue of approximately HK$2.3 million and gross profit of approximately HK$1.3 million during the fiscal year from April 1, 2025 to March 31, 2026, both declining from revenue of HK$2.7 million and gross profit of HK$1.6 million in the same period the previous year. The annual report attributed this to the "unsatisfactory film market," with cinema business revenue remaining at a relatively low level.

While exiting the cinema business, Bingo Group's focus has clearly shifted toward new media. According to financial reports, the company achieved total turnover of approximately HK$47.4 million in fiscal year 2026, an increase of approximately HK$35.3 million from HK$12.1 million the previous year. The overall increase in revenue was mainly due to the rapid development of the new media business. The Xingfeng and Xingyu new media businesses launched during that fiscal year contributed approximately HK$37.8 million in revenue.

However, on the whole, the group recorded a loss of approximately HK$26 million in fiscal year 2026, a slight increase from a loss of HK$23.3 million the previous year. As of March 31, 2026, Bingo Group's total assets were approximately HK$68.9 million, with cash and cash equivalents of approximately HK$29.4 million and a gearing ratio of approximately 1.77.

For Stephen Chow, exiting the mainland cinema business is both a stop-loss measure and a pivot.