股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 2025年9月30日 截至月份: | | --- | | 新提交 | | 狀態: | 致：香港交易及結算所有限公司 公司名稱: IMAX China Holding, Inc. 呈交日期: 2025年10月8日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01970 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 625,625,000 | USD | | 0.0001 | USD | | 62,562.5 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 625,625,000 | USD | | 0.0001 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: IMAX China Holding, Inc. 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01970 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 339,191,222 | | 0 | | 339,191,222 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 339,191,222 | | 0 | | 339,191,222 | 第 2 頁 共 10 頁 v 1.1.1 III.已發行股份及/或庫存股份變動詳情 | 1. 股份分 ...

Group 1 - The film stocks showed strong performance in early trading, with Lemon Films rising by 33.03% to HKD 5.8, DMG Entertainment up by 8.94% to HKD 1.34, Maoyan Entertainment increasing by 6.05% to HKD 8.24, and IMAX China gaining 1.2% to HKD 8.4 [1] - As of August 18, 2025 summer movie season total box office (including pre-sales) reached CNY 9.956 billion, with total audience exceeding 260 million, showing significant growth compared to the same period last year [1] - The latest statistics from Maoyan Professional Edition indicate that the domestic animated film "Wang Wang Mountain Little Monster" has surpassed CNY 1.0026 billion in cumulative box office [1] Group 2 - In early 2025, the State Council issued a notice emphasizing the promotion of high-quality development in the cultural sector, particularly in film and animation content creation [2] - Huaxi Securities noted that if policy guidance improves as expected, the film sector is at a turning point similar to the lifting of game license restrictions at the end of 2022 [2] - With marginal policy improvements, the industry’s business model is expected to gradually improve, leading to a quicker release of quality long-form projects and a potential recovery in the supply of major productions, which could accelerate cash turnover for new businesses [2]

Group 1 - The film stocks showed strong performance in early trading, with Lemon Films rising by 33.03% to HKD 5.8, DMG Entertainment up by 8.94% to HKD 1.34, Maoyan Entertainment increasing by 6.05% to HKD 8.24, and IMAX China gaining 1.2% to HKD 8.4 [1] - As of August 18, 2025 summer movie season total box office (including pre-sales) reached CNY 9.956 billion, with total audience exceeding 260 million, showing significant growth compared to the same period last year [1] - The latest statistics from Maoyan Professional indicate that the domestic animated film "Wang Wang Mountain Little Monster" has surpassed CNY 1.0026 billion in cumulative box office [1] Group 2 - In early 2025, the State Council issued a notice emphasizing the promotion of high-quality development in the cultural sector, particularly in film and animation content creation [2] - Huaxi Securities noted that if policy guidance improves as expected, the film sector is at a turning point similar to the lifting of game license restrictions at the end of 2022, with potential for gradual improvement in business models and accelerated launch of quality long-form projects [2] - The industry may see a gradual recovery in supply of major productions, which could help accelerate inventory reduction and improve cash turnover for new businesses [2]

Group 1 - The Hong Kong film and television stocks experienced a general rise, with notable increases in several companies' stock prices [1] - Fengde Li Holdings saw a rise of over 12%, while Ningmeng Film and Television increased by over 10% [1] - New Stone Culture, Damai Entertainment, and Yaoxing Technology Group also reported gains of 5.49%, 4.07%, and nearly 4% respectively [1] Group 2 - Fengde Li Holdings' latest price is 0.064 with a market capitalization of 112 million and a year-to-date increase of 20.75% [2] - Ningmeng Film and Television's stock price is 4.820, with a market cap of 1.743 billion and a year-to-date increase of 72.14% [2] - Damai Entertainment has a stock price of 1.280, a market cap of 38.241 billion, and a significant year-to-date increase of 169.47% [2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: IMAX China Holding, Inc. 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01970 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 625,625,000 | USD | | 0.0001 | USD | | 62,562.5 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 625,625,000 | USD | | 0.0001 | USD | | 62,562.5 | 本月底法定/註冊股本總額： USD 6 ...

[Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the group's financial performance, liquidity, and capital resources, detailing operating results and key financial metrics [Overview and Business Segments](index=5&type=section&id=Overview%20and%20Business%20Segments) The group's revenue primarily stems from Content Solutions and Technology Products and Services, encompassing film conversion, cinema system sales, leasing, and maintenance - The Group's revenue primarily comes from two core business segments: Content Solutions (film conversion and distribution) and Technology Products and Services (cinema system sales, leasing, and maintenance)[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) 2025 Fiscal Year First Half Revenue by Segment | Segment | Revenue (Thousand USD) | % of Total Revenue | | :--- | :--- | :--- | | Content Solutions | 20,801 | 36.0% | | Technology Products and Services | 36,230 | 62.7% | | All Other | 771 | 1.3% | | **Total** | **57,802** | **100.0%** | 2025 Fiscal Year First Half Gross Profit by Segment | Segment | Gross Profit (Thousand USD) | Gross Margin (%) | | :--- | :--- | :--- | | Content Solutions | 19,197 | 92.3% | | Technology Products and Services | 20,686 | 57.1% | | All Other | 217 | 28.1% | | **Total** | **40,100** | **69.4%** | [Content Solutions](index=5&type=section&id=Content%20Solutions) Content Solutions revenue is generated from a percentage of box office receipts from Hollywood, Chinese, and other films converted to IMAX format - Content Solutions revenue is derived from a percentage of box office receipts from partner films (Hollywood, Chinese, etc.) converted and distributed to the IMAX cinema network[11](index=11&type=chunk) [Technology Products and Services](index=6&type=section&id=Technology%20Products%20and%20Services) Technology Products and Services revenue includes sales and leases of IMAX cinema systems, revenue-sharing, maintenance, and other cinema-related item sales - Technology Products and Services revenue comprises: - **Sales and Sales-Type Leases**: design, manufacturing, and installation fees for cinema systems - **Revenue-Sharing Arrangements**: leasing systems to exhibitors for future box office revenue sharing - **Maintenance Revenue**: ongoing maintenance, warranty, and technical support services - **Other Cinema Revenue**: aftermarket sales of 3D glasses, screens, and more[12](index=12&type=chunk)[14](index=14&type=chunk) [Comparative Operating Results](index=10&type=section&id=Comparative%20Operating%20Results) In H1 2025, total revenue grew 31.7% to $57.8 million, operating profit increased 93.7% to $30.2 million, and net profit rose 88.9% to $23.9 million, driven by Content Solutions' strong box office recovery and improved gross margins H1 2025 vs H1 2024 Operating Results | Metric (Thousand USD) | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 57,802 | 43,901 | +31.7% | | Gross Profit | 40,100 | 25,102 | +59.8% | | Operating Profit | 30,196 | 15,592 | +93.7% | | Profit for the Period | 23,893 | 12,648 | +88.9% | | Adjusted Profit | 24,815 | 13,401 | +85.2% | - Revenue growth was primarily driven by an **$11.5 million increase** in Content Solutions revenue and a **$2.1 million increase** in Technology Products and Services revenue[26](index=26&type=chunk) [Revenue Comparison](index=11&type=section&id=Revenue%20Comparison) Total revenue increased by 31.7%, primarily driven by Content Solutions, which surged 123.7% to $20.8 million due to a 91.2% rise in IMAX format film box office to $205.5 million and higher-commission Chinese film box office share - Content Solutions revenue increased by **123.7% year-on-year**, primarily due to increased box office revenue and a higher proportion of local language films with higher commission rates; IMAX format film box office revenue increased by **91.2% year-on-year** to **$205.5 million**[27](index=27&type=chunk) - Technology Products and Services revenue increased by **6.2% year-on-year**, mainly due to a **$7 million increase** in revenue-sharing arrangements, partially offset by a **$5.5 million decrease** in sales and sales-type lease revenue[29](index=29&type=chunk) IMAX Cinema System Installations | Business Arrangement | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales and Sales-Type Lease Arrangements | 9 | 4 | | Revenue-Sharing Arrangements | 15 | 6 | | **Total** | **24** | **10** | [Cost of Sales Comparison](index=14&type=section&id=Cost%20of%20Sales%20Comparison) Total cost of sales decreased by 5.9% to $17.7 million, with Content Solutions' cost of sales falling 30.4% due to fewer Hollywood films screened and lower per-film costs, while Technology Products and Services' costs slightly decreased by 3.1% from reduced depreciation under revenue-sharing arrangements - The Group's total cost of sales decreased by **5.9%** from **$18.8 million** to **$17.7 million**[36](index=36&type=chunk) - Content Solutions' cost of sales decreased by **30.4%**, primarily due to fewer Hollywood films screened in mainland China and lower DMR conversion and marketing costs per film[37](index=37&type=chunk) [Gross Profit and Gross Margin Comparison](index=15&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Comparison) Group gross profit significantly increased by 59.8% to $40.1 million, with gross margin improving from 57.2% to 69.4%, primarily driven by Content Solutions' 174.3% gross profit growth to $19.2 million and 92.3% gross margin, reflecting network operating leverage - Overall group gross profit increased by **59.8% year-on-year**, with gross margin improving from **57.2%** to **69.4%**[43](index=43&type=chunk) - Content Solutions gross profit increased by **174.3%**, with gross margin rising from **75.4%** to **92.3%**, primarily due to operating leverage from **91.2% box office growth** and reduced costs[44](index=44&type=chunk) - Technology Products and Services gross profit increased by **14.4%**, with gross margin rising from **53.1%** to **57.1%**[45](index=45&type=chunk) [Other Expenses and Profit Comparison](index=16&type=section&id=Other%20Expenses%20and%20Profit%20Comparison) Selling, general, and administrative expenses slightly increased by 2.9%, other operating expenses rose due to higher licensing fees to IMAX Corporation from increased revenue, and financial asset impairment shifted from provision to reversal due to enhanced collection efforts, resulting in a period profit increase of 88.9% to $23.9 million - Selling, general, and administrative expenses slightly increased by **2.9%** to **$7 million**[50](index=50&type=chunk) - Financial asset impairment impact shifted from a **$0.4 million provision** in the prior period to a **$0.1 million reversal** in the current period, mainly due to enhanced collection efforts for trade receivables[52](index=52&type=chunk)[19](index=19&type=chunk) - Income tax expense increased by **86.8%** to **$7.1 million** due to a significant increase in profit before tax[55](index=55&type=chunk) - Profit for the period was **$23.9 million**, compared to **$12.6 million** in the prior period[56](index=56&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the group's net current assets increased to $191.3 million from $164.7 million at year-end 2024, with cash and cash equivalents rising to $94.2 million, reflecting capital management goals to ensure going concern, maximize shareholder returns, and maintain an optimal capital structure Liquidity Position (Thousand USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | 226,116 | 198,702 | | Total Current Liabilities | 34,839 | 34,014 | | **Net Current Assets** | **191,277** | **164,688** | | Cash and Cash Equivalents | 94,172 | 80,049 | - The increase in net current assets was primarily attributable to a **$15.4 million increase** in trade and other receivables and a **$14.1 million increase** in cash and cash equivalents[59](index=59&type=chunk) - Capital management objectives include safeguarding the ability to continue as a going concern, maximizing shareholder returns, and optimizing the capital structure to reduce the weighted average cost of capital[61](index=61&type=chunk) [Cash Flow Analysis](index=20&type=section&id=Cash%20Flow%20Analysis) In H1 2025, net cash from operating activities was $19.3 million, largely consistent with the prior period, while net cash used in investing activities was $3.2 million, primarily for cinema equipment under revenue-sharing arrangements, and net cash used in financing activities was $2.2 million, mainly for share repurchases and equity incentive settlements Condensed Cash Flow Statement (Thousand USD) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 19,295 | 19,657 | | Net Cash Used in Investing Activities | (3,187) | (3,216) | | Net Cash Used in Financing Activities | (2,209) | (1,492) | | **Increase in Cash and Cash Equivalents for the Period** | **14,123** | **14,746** | - Net cash inflow from operating activities was **$19.3 million**, primarily from **$31 million** in profit before tax, partially offset by working capital changes (mainly increased trade receivables) and taxes paid after adjusting for non-cash items[62](index=62&type=chunk) - Net cash outflow from investing activities was **$3.2 million**, primarily for the installation of IMAX cinema equipment under comprehensive revenue-sharing arrangements[64](index=64&type=chunk) - Net cash outflow from financing activities was **$2.2 million**, mainly for **$1.5 million** in share repurchases[66](index=66&type=chunk) [Capital Commitments and Working Capital](index=21&type=section&id=Capital%20Commitments%20and%20Working%20Capital) As of June 30, 2025, the group's capital commitments totaled $1.3 million, primarily for property, plant, and equipment acquisitions, with working capital needs met by operating cash flow and an unutilized RMB 400 million (approximately $55.8 million) unsecured revolving credit facility from Bank of China and HSBC - As of June 30, 2025, contracted but unprovided capital expenditure amounted to **$1.3 million**[69](index=69&type=chunk) - The Group has unsecured revolving credit facilities totaling up to **RMB 400 million** (approximately **$55.8 million**) with Bank of China and HSBC to meet working capital requirements[73](index=73&type=chunk) - As of June 30, 2025, the Group had no outstanding borrowing capital, bank overdrafts, or other similar debts[74](index=74&type=chunk)[78](index=78&type=chunk) [Key Financial Ratios and Dividends](index=24&type=section&id=Key%20Financial%20Ratios%20and%20Dividends) As of June 30, 2025, the capital-to-debt ratio decreased from 21.7% to 20.0% due to increased equity, while the adjusted profit margin significantly improved from 30.5% to 42.9%, and the board resolved not to declare an interim dividend for the six months ended June 30, 2025 Key Financial Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital-to-Debt Ratio | 20.0% | 21.7% | | **Ratio** | **H1 2025** | **H1 2024** | | Adjusted Profit Margin | 42.9% | 30.5% | - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[84](index=84&type=chunk) [Corporate Governance Summary and Other Information](index=26&type=section&id=Corporate%20Governance%20Summary%20and%20Other%20Information) This section outlines the company's share repurchase activities, adherence to corporate governance principles, and details on connected transactions and equity-based compensation plans [Share Repurchase and Corporate Governance](index=26&type=section&id=Share%20Repurchase%20and%20Corporate%20Governance) In the six months ended June 30, 2025, the company repurchased 1,495,900 listed shares for approximately HKD 11.27 million on the Stock Exchange, while maintaining high corporate governance standards and public float, with minor exceptions for director attendance at the AGM - For the six months ended June 30, 2025, the company repurchased **1,495,900 shares** on the Stock Exchange, totaling approximately **HKD 11.27 million**[87](index=87&type=chunk)[88](index=88&type=chunk) - The company is committed to maintaining high corporate governance practices and has complied with all code provisions of the Corporate Governance Code, with minor exceptions for certain directors' absence from the Annual General Meeting[91](index=91&type=chunk)[93](index=93&type=chunk) - The company has established Audit, Remuneration, and Nomination Board Committees to manage and oversee specific matters[97](index=97&type=chunk) [Connected Transactions](index=29&type=section&id=Connected%20Transactions) The group engages in various ongoing connected transactions with its controlling shareholder, IMAX Corporation and its subsidiaries, primarily involving equipment supply, technology and trademark licensing, and film DMR conversion and distribution services, which are fundamental to the group's operations and comply with Listing Rules - The Group has multiple ongoing connected transactions with its controlling shareholder, IMAX Corporation, which are crucial to the Group's business and cover technology, brand, equipment, and content services[104](index=104&type=chunk) H1 2025 Key Connected Transaction Amounts (Thousand USD) | Transaction Type | Payable to IMAX Corp. | Receivable from IMAX Corp. | | :--- | :--- | :--- | | Equipment Supply | 3,768 | - | | Master Distribution Agreement (Hollywood Films) | 1,277 | 3,255 | | DMR Services (Chinese Films) | 504 | 347 | | Technology License | 1,803 | - | | Trademark License | 1,202 | - | | Enhanced Business | 64 | 722 | [Discloseable and Announceable Connected Transactions](index=29&type=section&id=Discloseable%20and%20Announceable%20Connected%20Transactions) These transactions require disclosure and announcement under Listing Rules but are exempt from independent shareholder approval, including trademark and technology licensing, DMR services, and Enhanced business agreements, forming the framework for the group's core technology, brand authorization, content production, and back-office support - Trademark License Agreement: IMAX Corporation grants the Group exclusive rights to use IMAX-related trademarks in Greater China, with a fee of **2% of total revenue**; approximately **$1.202 million** was paid in H1 2025[111](index=111&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) - Technology License Agreement: IMAX Corporation grants the Group exclusive rights to use related equipment and service technologies, with a fee of **3% of total revenue**; approximately **$1.803 million** was paid in H1 2025[126](index=126&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) - DMR Services Agreement: IMAX Corporation provides DMR conversion services for Chinese films, with a fee of actual cost plus **10%**; approximately **$0.504 million** was paid in H1 2025[143](index=143&type=chunk)[147](index=147&type=chunk)[150](index=150&type=chunk) - Enhanced Business Agreement: The Group collaborates with IMAX Corporation to develop the IMAX Enhanced business, involving license fee payments and revenue sharing; in H1 2025, the Group paid approximately **$0.064 million** in license fees and received approximately **$0.722 million** in revenue sharing[168](index=168&type=chunk)[173](index=173&type=chunk) [Discloseable, Announceable, and Shareholder Approved Connected Transactions](index=48&type=section&id=Discloseable%2C%20Announceable%2C%20and%20Shareholder%20Approved%20Connected%20Transactions) These transactions, due to their significant value, require disclosure, announcement, and shareholder approval (though exempted), primarily including the Equipment Supply Agreement and Master Distribution Agreement, which are core channels for the group to acquire IMAX cinema system hardware and Hollywood film content - Equipment Supply Agreement: IMAX Corporation supplies cinema system-related equipment to the Group, with a purchase price of actual cost plus **10%**; in H1 2025, the Group paid approximately **$3.768 million** for equipment for **24 systems**[185](index=185&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) - Master Distribution Agreement: IMAX Corporation provides Hollywood films for screening in Greater China, with the Group paying a fixed conversion fee and receiving a portion of box office revenue; in H1 2025, the Group paid **$1.277 million** in conversion fees for **8 films** and received **$3.255 million** in revenue[192](index=192&type=chunk)[197](index=197&type=chunk)[204](index=204&type=chunk) [Equity and Remuneration](index=57&type=section&id=Equity%20and%20Remuneration) This report discloses shareholdings of directors, key executives, and major shareholders in the company and its associated corporations (IMAX Corporation), detailing the group's comprehensive remuneration policy and long-term incentive plans, including share option, RSU, and PSU schemes, designed to attract and motivate talent - Disclosures include shareholdings of directors, key executives, and major shareholders (IMAX Corporation and its subsidiaries) in the company[207](index=207&type=chunk)[213](index=213&type=chunk) - The Group's remuneration policy aims to attract and retain talent by linking compensation to the Group's annual performance[215](index=215&type=chunk) - The Group has three long-term incentive sub-plans: Share Option Scheme, Restricted Share Unit (RSU) Scheme, and Performance Share Unit (PSU) Scheme[218](index=218&type=chunk)[220](index=220&type=chunk) [Long-Term Incentive Plan Details](index=59&type=section&id=Long-Term%20Incentive%20Plan%20Details) The group's long-term incentive plan comprises three sub-plans, with 654,265 unexercised share options, 1,793,004 unexercised RSUs, and 663,969 unexercised PSUs as of June 30, 2025, and 1,097,339 new RSUs and 180,930 new PSUs granted to directors, executives, and employees during the period Outstanding Equity Incentives as of June 30, 2025 | Plan Type | Outstanding Quantity | | :--- | :--- | | Share Option Scheme | 654,265 | | Restricted Share Unit Scheme | 1,793,004 | | Performance Share Unit Scheme | 663,969 | - For the six months ended June 30, 2025, the company granted **1,097,339 new Restricted Share Units (RSUs)** and **180,930 new Performance Share Units (PSUs)**[248](index=248&type=chunk)[263](index=263&type=chunk) [Interim Financial Information](index=74&type=section&id=Interim%20Financial%20Information) This section presents the interim financial statements, including the review report, condensed consolidated statements of comprehensive income, financial position, changes in equity, and cash flows, along with detailed notes on accounting policies, financial risk management, and related party transactions [Review Report on Interim Financial Information](index=74&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) PricewaterhouseCoopers has reviewed the group's interim financial information in accordance with International Standard on Review Engagements 2410, concluding that nothing came to their attention causing them to believe the interim financial information is not prepared in all material respects in accordance with International Accounting Standard 34 - PricewaterhouseCoopers, the auditor, has reviewed the interim financial information and issued a conclusion[278](index=278&type=chunk) - Conclusion: Nothing came to the auditor's attention causing them to believe the interim financial information is not prepared in all material respects in accordance with International Accounting Standard 34[280](index=280&type=chunk) [Condensed Consolidated Interim Financial Statements](index=75&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the four core financial statements for the six months ended June 30, 2025: the statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, reflecting strong revenue and profit growth, expanded assets, and a healthy cash position Condensed Consolidated Interim Statement of Comprehensive Income (Thousand USD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 57,802 | 43,901 | | Gross Profit | 40,100 | 25,102 | | Operating Profit | 30,196 | 15,592 | | **Profit for the Period Attributable to Owners of the Company** | **23,893** | **12,648** | | Basic Earnings Per Share (USD) | 0.07 | 0.04 | Condensed Consolidated Interim Statement of Financial Position (Thousand USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 358,266 | 333,573 | | Total Liabilities | 59,826 | 59,469 | | **Total Equity** | **298,440** | **274,104** | Condensed Consolidated Interim Statement of Cash Flows (Thousand USD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 19,295 | 19,657 | | Net Cash Used in Investing Activities | (3,187) | (3,216) | | Net Cash Used in Financing Activities | (2,209) | (1,492) | | **Cash and Cash Equivalents at End of Period** | **94,172** | **77,457** | [Notes to Condensed Consolidated Interim Financial Information](index=81&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Information) These notes provide detailed explanations and supplementary information on accounting policies, financial risk management, significant accounting estimates, segment information, and various asset, liability, and profit/loss items, with a focus on revenue segment breakdown, financial risks (market, credit, liquidity), equity incentive accounting, and detailed related party transactions with IMAX Corporation - Financial Risk Management: The Group faces market risks (foreign exchange, interest rate), credit risk, and liquidity risk, with corresponding policies in place; credit risk includes concentration risk due to revenue and receivables from a few major customers[308](index=308&type=chunk)[314](index=314&type=chunk) - Revenue and Segment Information (Note 7): Details revenue, cost, and gross profit for Content Solutions and Technology Products and Services segments; in H1 2025, revenue from two major customers each accounted for over **10% of total revenue**[344](index=344&type=chunk)[350](index=350&type=chunk)[351](index=351&type=chunk) - Share-Based Payments (Note 16c): Discloses activity for options, RSUs, and PSUs under the China Long-Term Incentive Plan and IMAX Long-Term Incentive Plan, including outstanding at beginning, granted, vested, forfeited, and outstanding at end of period[369](index=369&type=chunk)[372](index=372&type=chunk)[376](index=376&type=chunk)[383](index=383&type=chunk) - Related Party Transactions (Note 24): Quantifies various transactions with controlling shareholder IMAX Corporation, including cinema system purchases, film-related transactions, management fees, trademark and technology fees, and revenue sharing[415](index=415&type=chunk)

Group 1 - Hong Kong film stocks showed strength, with Huayi Brothers Media (01003.HK) rising over 7% [1] - Maoyan Entertainment (01896.HK) increased by more than 4% [1] - Other companies such as IMAX China (01970.HK) and Alibaba Pictures (01060.HK) also experienced gains [1]

Group 1 - Several Hong Kong film and television stocks have shown strength, with Huayi Brothers Media (01003.HK) rising by 7.37% [1] - Other notable performers include Maoyan Entertainment (01896.HK) which increased by 4.83% and IMAX Corporation (01970.HK) which saw a slight rise of 0.12% [1]

Core Insights - The Chinese mainland film market has seen significant growth in special effects theaters, with box office revenue reaching 7.26 billion yuan in the first half of the year, a year-on-year increase of 58.6%, accounting for 24.8% of the market share, the highest since 2019 [1][4] - IMAX China reported a record performance in its mid-2025 financial report, with revenue of approximately 57.8 million USD (about 416 million yuan), a year-on-year growth of 29.77%, and a net profit of 23.89 million USD, up 86.18% [1][2] - The film "Nezha 2" significantly boosted the demand for special effects theaters, contributing 67% of the box office for these theaters in the first half of the year [3][4] Industry Trends - The share of special effects theaters in the overall market has been steadily increasing, from 18.5% in 2018 to 24.8% in the first half of 2023 [4] - The average ticket price for special effects theaters has also risen, reaching 50.2 yuan in the first half of 2023, compared to 44.3 yuan for regular theaters, indicating a growing consumer preference for enhanced viewing experiences [4][6] - IMAX continues to dominate the market, with a box office of approximately 1.6 billion yuan in the first half of 2023, marking a year-on-year growth of 102.1% [6] Future Outlook - The sustainability of the growth in special effects theaters will depend on the overall market performance and the success of blockbuster films, particularly those with high visual effects [7] - There are mixed expectations for the second half of the year, with some forecasts predicting a decline of over 10% in the overall film market due to fewer confirmed popular releases compared to the previous year [7][8] - Upcoming films related to the 80th anniversary of the victory in the War of Resistance Against Japan, as well as anticipated sci-fi and animated films, may provide opportunities for market recovery [7][8]