Thursday, 25 Aug 2016 14:30 | By Meng Shuai
Recently, Malon Sports released its first half report for 2016. The net loss was up to 4.226 Million RMB. By the end of June 2016, the total assets of Malon Sports were 15.01 Million RMB with the cash flow decreasing by 9.45 Million RMB.
There are several factors contributing to this loss. Firstly, to improve its competitiveness, Malon Sports invested a huge amount of money on purchasing, producing and promoting the intellectual property for new events. Secondly, to operate the new events, Malon Sports hired more staff and enlarged their working offices. The expenditure on staff wages and office rental increased dramatically.
Malon Sports hold the rights to many projects such as Forestmarathon mimics Olympians, 2016 YES CITY-TO-CITY Run & Music Party, Royal Canal Open Regatta and G.O.Fores. However, during the process of the operation, it cannot control the cost of these projects. For example, 2016 YES CITY-TO-CITY Run & Music Party combined running with a music concert, but the concert’s cost was too expensive, while the running was almost neglected. In the fiercely competitive sports industry, Malon Sports should really think carefully about its future.
Proofread by Sean O Diobhilin