Alibaba Pictures Group Ltd (HKG:1060), saw its market value get a boost to reach $2.8 billion, after the parent group of Alibaba Holdings Ltd, hinted at injecting some of the company’s assets into the unit. The increase in market value was 37%, with the stock value closing at $3.91, in Hong Kong. This has been the group’s highest value since 2001. Even though, there is no confirmation that a deal would be reached, but the stock still registered a 1.2% increase in New York. It currently stands at $83.18.
The decision came after the group bought $800 million worth stake, in The Chinese Film Company, last year. Additionally, the company’s chairman, Jack Ma, recently visited Hollywood in an attempt to find partners to get more content for China’s film industry. The video industry in China is expected to double in the coming years and reach 90 billion Yuan.
Even though the company’s stock is climbing, it still has to report for the 1Q2015. This could spell danger for the company, since it reported a loss in the previous year. The delay in financial reports has been due to accounting flaws, as per the announcement by the group. The blame has been put on the previous management for misstating tax payments.
After a series of acquisitions in the Chinese film industry and an attempt to find more cultural content for the Chinese film industry, the company seems to be stabilizing. In January the company also announced the making of its first movie and it has acquired the services of the producer Wong Kar-wai. The state of the company is still, however, unsure. Even after making some progress, the company still has to worry about its misstated taxes. In recent news it was stated that the company is under the legal radar. The company has also been asked to pay a heavy fine for the misstatements, with added interest. The misstatements are not for the preceding year alone, but go back to 2012.