| 国泰君安国际(01788) | 50.00 万 | 52.01 万 | 2444.50 万 | 0.256% | | --- | --- | --- | --- | --- | | 捷利交易宝(08017) | 104.00 万 | 46.53 万 | 1960.80 万 | 3.270% | | 蒙牛乳业(02319) | 2.00 万 | 39.80 万 | 2125.20 万 | 0.540% | | 威高股份(01066) | 6.00 万 | 34.58 万 | 526.24 万 | 1.164% | | 中国东方航空股份 | 13.20 万 | 32.00 万 | 3999.60 万 | 0.773% | | (00670) | | | | | | 力鸿检验(01586) | 5.60 万 | 14.58 万 | 1353.20 万 | 24.974% | | 天鸽互动(01980) | 20.00 万 | 11.60 万 | 9012.80 万 | 7.497% | | 昊海生物科技(06826) | 4700.00 | 11.49 万 | 270.38 万 | 9.135% | | 澳优( ...

Box Office Performance - IMAX achieved over $130 million in box office revenue during the Spring Festival, more than double its previous record, with 14 million attendees[5]. - IMAX's market share during the Spring Festival reached a historical high of 5%, despite only accounting for 1% of total screens in China[5]. - The film "Ne Zha" became IMAX's highest-grossing local language film globally, surpassing "Avengers: Endgame" by 32%, with a total box office of $1.7 billion[5]. - IMAX's share of Hollywood film screenings in China increased from 9% to 15% over five years, with over 30% of the box office for "Dune" and over 20% for the re-release of the "Harry Potter" series[8]. - The revenue from Chinese-language films accounted for 44.7% of IMAX's box office in the fiscal year 2024, down from previous years due to an increase in Hollywood film screenings[34]. - In the fiscal year 2024, 73 IMAX films are projected to be screened in mainland China, up from 57 in fiscal year 2023[46]. - The average box office per screen for IMAX theaters in mainland China is estimated at $0.26 million, significantly higher than the $0.07 million average for all screens[47]. - In the fiscal year 2024, Chinese-language films accounted for 76.6% of total box office revenue in mainland China, compared to 83.5% in fiscal year 2023[51]. - The share of IMAX format Chinese-language films in the group's box office revenue in mainland China was 44.7% in fiscal year 2024, down from 61.5% in fiscal year 2023[51]. Strategic Partnerships and Expansion - IMAX signed long-term agreements with over 100 theaters, upgrading 61 high-performing locations and opening up to 25 new IMAX theaters in key markets[8]. - IMAX expanded its content offerings to include concerts, sports, documentaries, and esports, achieving 45% of the box office for "Taylor Swift: The Eras Tour" and a 90% average occupancy for the League of Legends finals streamed in over 150 IMAX theaters[9]. - IMAX aims to leverage its brand influence and rich content resources to drive the premiumization of the Chinese film and entertainment industry[12]. - The company aims to expand its market share by collaborating with local filmmakers to produce high-quality films that resonate with local audiences[35]. - IMAX's strategic emphasis on Chinese-language films is expected to drive future growth, particularly in smaller cities in China[35]. - The company has established strong partnerships with over 90 exhibitors, including major players like Wanda Film and Huayi Brothers[41]. - The company aims to enhance collaboration with mainland Chinese filmmakers to incorporate IMAX technology into local films[45]. Financial Performance - The company's revenue for the fiscal year 2024 was $80,997 thousand, a decrease from $86,982 thousand in fiscal year 2023, representing a decline of approximately 6.8%[86]. - Revenue from content solutions was $15,510 thousand, accounting for 19.2% of total revenue, down from $25,522 thousand and 29.4% in the previous year[86]. - Revenue from technology products and services increased to $64,507 thousand, making up 79.6% of total revenue, compared to $60,898 thousand and 70.0% in fiscal year 2023, indicating a growth of approximately 5.3%[86]. - The company reported a net income attributable to shareholders of $22.217 million for the fiscal year 2024, down from $27.501 million in the fiscal year 2023[96]. - The adjusted profit for the fiscal year 2024 was $23.443 million, compared to $29.831 million in the fiscal year 2023[100]. - Gross profit for the fiscal year 2024 was $44.017 million, with a gross margin of 54.3%, down from $54.533 million and a gross margin of 62.7% in the fiscal year 2023[96]. - The total comprehensive income for FY2024 was $20.3 million, down from $24.7 million in FY2023, mainly due to a decrease in profit[143]. Operational Efficiency and Costs - The company’s operating costs are significantly fixed, which may adversely affect profitability if there are substantial declines in revenue due to pricing adjustments[74]. - The company faces risks related to the collection of receivables from its exhibitors, which may impact future revenue and cash flow if exhibitors encounter financial difficulties[76]. - The company has a flexible scheduling strategy, particularly during holidays, allowing for multiple Chinese-language films to be released simultaneously[35]. - Seasonal impacts are noted, with higher profitability typically observed in the second half of the year as most exhibitors install IMAX systems in preparation for the Chinese New Year holiday[78]. - The company may strategically offer discounts to certain exhibitors to maintain or gain market share, which could impact overall revenue[74]. Governance and Management Changes - Richard Gelfond has been the non-executive chairman since May 27, 2015, and is a major shareholder of IMAX Corporation[190]. - Daniel Wade Manwaring will become an executive director effective February 27, 2024, after serving as CEO since January 9, 2023[192]. - Jim Athanasopoulos has been an executive director since May 27, 2015, and served as CFO and COO until July 2023[196]. - Robert Lister was appointed as a non-executive director on May 1, 2023, and has been with IMAX Corporation since 1999[197]. - The company has undergone changes in its board, with new appointments and resignations effective February 2024[188]. - The board includes independent directors such as 靳羽西 and John Marshal Davison, contributing to corporate governance[188]. Market Challenges and Risks - The overall economic recovery in mainland China is slow, impacting the financial stability of several exhibitors, which may lead to delays in payments and responsibilities towards the group[65]. - Political tensions between China and the US or Canada may exacerbate risks, potentially impacting future revenue and cash flow in mainland China[67]. - The entertainment industry is highly competitive, with advancements in home entertainment technology posing challenges to the group's market position[71]. - The group faces competition from various entertainment channels, including streaming services and home theaters, which may negatively impact its business performance[72].

Financial Performance - IMAX China reported total revenue of $80,997,000 for the year ended December 31, 2024, a decrease of 6.8% compared to $86,982,000 in 2023[8]. - The gross profit for the year was $44,017,000, down 19.4% from $54,533,000 in the previous year[8]. - Operating profit decreased to $27,524,000, a decline of 14.0% from $32,227,000 in 2023[8]. - Net profit attributable to shareholders was $22,217,000, representing a decrease of 19.3% compared to $27,501,000 in 2023[8]. - For the fiscal year ending December 31, 2024, total revenue was $80,997 million, a decrease of 6.8% from $86,982 million in 2023[29]. - The company reported a pre-tax profit of $29,354 million for 2024, down from $33,673 million in 2023, reflecting a decrease of 12.9%[29]. - The adjusted profit for FY2024 was $23.443 million, down from $29.831 million in FY2023, a decrease of 21.5%[142]. - The company reported a net profit attributable to shareholders of $22.217 million in FY2024, down from $27.501 million in FY2023, a decrease of 19.2%[138]. - Total comprehensive income for FY2024 was $20.3 million, a decrease from $24.7 million in FY2023[176]. Revenue Breakdown - The content solutions segment generated revenue of $15,510 million, down 39.3% from $25,522 million in 2023, while the technology products and services segment saw an increase to $64,507 million from $60,898 million[29]. - Revenue from content solutions was $15.510 million, accounting for 19.2% of total revenue, down from $25.522 million (29.4%) in the previous year[123]. - Revenue from technology products and services increased to $64.507 million, representing 79.6% of total revenue, compared to $60.898 million (70.0%) in fiscal year 2023[123]. - Revenue from sales and sales-type leases increased from $16.1 million in FY2023 to $25.0 million in FY2024, a growth of 55.3% driven by new agreements and system installations[150]. - Revenue share arrangements decreased from $20.1 million in FY2023 to $13.3 million in FY2024, a decline of 33.8%, primarily due to reduced IMAX box office revenue[151]. Expenses and Profitability - The gross profit margin fell from 62.7% in FY2023 to 54.3% in FY2024, reflecting a decrease in profitability[138]. - Cost of sales for fiscal year 2024 was $36.980 million, which is 45.7% of total revenue, up from $32.449 million (37.3%) in fiscal year 2023[126]. - Selling, general, and administrative expenses totaled $13.085 million, representing 16.1% of total revenue, a decrease from $18.138 million (20.9%) in fiscal year 2023[129]. - Other operating expenses were approximately $4.3 million in fiscal year 2024, compared to $3.9 million in fiscal year 2023, accounting for about 5% of total revenue[130]. - The company reported a net reversal of impairment losses of $0.2 million in fiscal year 2024, contrasting with a provision of $1.2 million in fiscal year 2023[132]. Assets and Liabilities - Total assets increased to $333,573,000 as of December 31, 2024, up from $318,276,000 in 2023, reflecting a growth of 4.0%[10]. - Cash and cash equivalents rose to $80,049,000, an increase of 27.7% from $62,711,000 in the previous year[10]. - Total liabilities decreased to $59,469,000, down 6.5% from $63,905,000 in 2023[12]. - Shareholders' equity increased to $274,104,000, up 7.8% from $254,371,000 in 2023[12]. Market Strategy and Expansion - The company continues to focus on expanding its presence in the Greater China region, leveraging its digital cinema technology[15]. - IMAX aims to increase the number of Chinese-language films screened annually and the percentage of box office revenue generated from these films[81]. - The company plans to produce three "IMAX Special Shoot" Chinese-language films in 2024, continuing this strategy into 2025 and beyond[71]. - The company collaborates with over 90 exhibitors, including major players like Wanda Film and Alibaba Pictures, to expand its IMAX cinema network[78]. - The company plans to continue upgrading and expanding its IMAX cinema network through existing contracts and future orders, focusing on revenue-sharing arrangements[194]. Risks and Challenges - The slow post-pandemic economic recovery in China poses risks, including financial difficulties for some exhibitors, which may delay their payment and installation responsibilities[101]. - Regulatory changes in China regarding data protection and foreign enterprises may introduce uncertainties that could impact the company's operations and compliance[102]. - The company faces risks related to the Chinese government's control over the distribution of Hollywood films, which could affect its business expansion and revenue growth in the region[103]. - The company's revenue is significantly influenced by the willingness of consumers to purchase IMAX tickets, which may decline due to economic challenges and inflation, potentially impacting box office revenue from exhibitors[105]. - The company faces intense competition from other entertainment channels, including home theaters and streaming services, which may affect consumer willingness to pay a premium for IMAX tickets[110]. Cash Flow and Financing - The company reported a net cash generated from operating activities of approximately $30.8 million in FY2024, compared to $12.5 million in FY2023[185]. - The company's financing activities for fiscal year 2024 resulted in a net cash outflow of approximately $2.1 million, mainly due to restricted stock unit settlements and lease payments[190]. - The company has established an unsecured revolving financing facility of up to RMB 200 million (approximately $27.8 million) to meet ongoing working capital needs[198]. - As of December 31, 2024, there were no significant adverse changes in the company's debt since the audited financial statements[199].

IMAX CHINA HOLDING, INC. 於 開 曼 群 烏 註 冊 成 立 之 有 限 公 司 股份代號 : 1970 2024 年中期報告 . IMAX 目 錄 IMAX CHINA HOLDING, INC. 2024年中期報告 公司資料 | --- | |--------------------------| | | | | | 管理層討論與分析 | | 企業管治摘要及其他資料 | | 中期財務資料的審閱報告 | | 簡明綜合中期全面收益表 | | 簡明綜合中期財務狀況表 | | 簡明綜合中期權益變動表 | | 簡明綜合中期現金流量表 | | 簡明綜合中期財務資料附註 | | 釋義 | | --- | |-------| | | | 3 | | 24 | | 69 | | 70 | | 71 | | 73 | | 75 | | 76 | | 121 | | 126 | 詞彙 2024年中期報告 1 IMAX 公司資料 | --- | --- | |--------------------------------|---------------------------------------| ...

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was $43,901 million, a decrease of 3.2% from $45,342 million in the same period of 2023[3]. - Gross profit for the same period was $25,102 million, down 12.5% from $28,718 million in 2023[4]. - Operating profit decreased to $15,592 million, compared to $16,429 million in the previous year, reflecting a decline of 5.1%[5]. - Profit attributable to owners of the company was $12,648 million, down 8.9% from $13,876 million in 2023[6]. - The group reported a pre-tax profit of $16,449 million for the six months ended June 30, 2024, compared to $16,873 million in the same period of 2023[21]. - The adjusted profit for the first half of the 2024 fiscal year was $13.4 million, compared to $15.1 million in the first half of the 2023 fiscal year[55]. - The company reported a net profit of $12,648 million for the six months ended June 30, 2024, a decrease from $13,876 million in the same period of 2023, representing a decline of approximately 8.9%[29]. - The company reported a net loss of $(293,889) thousand in cumulative losses as of June 30, 2024, compared to $(292,845) thousand at the end of 2023, reflecting a slight increase in losses[117]. Earnings Per Share - Basic and diluted earnings per share remained unchanged at $0.04 for both periods[6]. - Basic and diluted earnings per share for the three months ended June 30, 2024, were $0.07, down from $0.15 in the same period of 2023, representing a decline of 53.3%[121]. Assets and Liabilities - Total assets as of June 30, 2024, were $327,910 million, an increase from $318,276 million at the end of 2023[10]. - Total liabilities decreased to $62,076 million from $63,905 million at the end of 2023, reflecting a reduction of 2.9%[12]. - Total equity attributable to owners increased to $265,834 million, up from $254,371 million at the end of 2023, representing a growth of 4.3%[13]. - Cash and cash equivalents increased to $77,457 million from $62,711 million, indicating a significant rise of 23.5%[10]. - Trade receivables as of June 30, 2024, totaled $73,504 million, down from $75,956 million as of December 31, 2023, indicating a decrease of about 3.2%[32]. - Deferred income as of June 30, 2024, was $24,335 million, slightly lower than $25,784 million as of December 31, 2023, showing a decline of approximately 5.6%[36]. - The deferred tax assets decreased to $3,818 million as of June 30, 2024, from $4,324 million as of December 31, 2023, reflecting a reduction of approximately 11.7%[34]. - Total liabilities rose to $484,437 thousand as of June 30, 2024, compared to $469,080 thousand on December 31, 2023, indicating an increase of 3.0%[116]. Revenue Segments - The content solutions segment generated revenue of $9,346 million, down 34.3% from $14,178 million in the prior year[21]. - The technology products and services segment reported revenue of $34,075 million, an increase of 10.4% from $30,896 million in the previous year[21]. - Revenue from content solutions was $9.346 million, accounting for 21.3% of total revenue, down from $14.178 million and 31.3% in the previous year[43]. - Revenue from technology products and services increased to $34.075 million, making up 77.6% of total revenue, compared to $30.896 million and 68.1% in the prior year[43]. - Revenue from sales and sales-type leases increased from $7.5 million in the first half of fiscal 2023 to $13.7 million in the first half of fiscal 2024, a growth of 82.7%[61]. - Revenue from revenue-sharing arrangements totaled $32.5 million for the six months ended June 30, 2024, down from $40.7 million in 2023, reflecting a decrease of approximately 20%[165]. Operating Expenses - Operating expenses, including selling, general and administrative expenses, totaled $28,309 million, slightly down from $28,913 million in the previous year[27]. - Total operating expenses for the first half of 2024 were $6.821 million, representing 15.5% of total revenue, a decrease from $8.979 million or 19.8% in the same period of 2023[47]. - Selling, general and administrative expenses decreased by 16.8% from $9.0 million in the first half of fiscal 2023 to $6.8 million in the first half of fiscal 2024, mainly due to a reduction in employee compensation and benefits[78]. - Other operating expenses decreased from $2.5 million in the first half of fiscal 2023 to $2.3 million in the first half of fiscal 2024, primarily due to reduced annual licensing fees related to technology and trademark agreements[79]. Cash Flow and Investments - The company recorded a net cash from operating activities of $19.7 million for the first half of the 2024 fiscal year, an increase from $12.0 million in the same period of the previous fiscal year[97]. - For the first half of the 2024 fiscal year, the company reported a net cash used in investing activities of approximately $3.2 million, primarily related to the installation of IMAX cinema equipment costing $2.6 million[91]. - The net cash used in financing activities for the first half of the 2024 fiscal year was approximately $1.5 million, mainly due to the settlement of restricted stock units and options amounting to $1.1 million[92]. - Cash and cash equivalents increased by $14.7 million in the first half of fiscal 2024, reaching $77.5 million compared to $62.7 million at the beginning of the period[88]. - The company’s capital expenditure for the first half of the 2024 fiscal year was $3.2 million, compared to $1.8 million in the same period of the previous fiscal year, focusing on acquiring IMAX cinema systems[95]. Taxation - The group incurred a total income tax expense of $3,801 million for the six months ended June 30, 2024, compared to $2,997 million in the same period of 2023[28]. - The income tax expense for the first half of the 2024 fiscal year was $3.8 million, compared to $3.0 million in the first half of the 2023 fiscal year[51]. - The company recorded a tax benefit of $4.0 million for the three months ended June 30, 2024, compared to a tax expense of $3.5 million in 2023, indicating a significant turnaround[167]. - The company’s actual tax rate for the six months ended June 30, 2024, was 10.0%, significantly lower than the Canadian statutory rate of 26.5% due to various tax incentives and foreign jurisdiction differences[167]. Share Repurchase and Dividends - The board has resolved not to declare any interim dividend for the six months ending June 30, 2024[102]. - The company repurchased a total of 119,900 shares at an average price of HKD 7.43, totaling HKD 890,928.94 during May 2024[106]. - Additional share repurchases included 91,811 shares at an average price of HKD 6.7076 and 218,318 shares at an average price of HKD 8.92 in June 2024[107]. - The company has authorized a share repurchase plan for up to 10% of its issued shares, totaling approximately 34,000,845 shares, valid until the 2025 annual general meeting[180]. Market Presence and Strategy - The company continues to focus on expanding its market presence in Greater China, leveraging its digital cinema technology[14]. - The group’s operating assets and liabilities are located in Greater China, with all revenue derived from IMAX cinema operations in the region[21]. Credit Quality and Risk Management - The company has established a credit quality classification system for cinema operators, including categories such as "Outstanding Credit" and "All Transactions Suspended" based on payment history and communication[129]. - Management conducts monthly meetings to monitor credit quality and identify potential credit issues among clients[128]. - The company has recognized a credit loss provision of $181,000 for the six months ended June 30, 2024, after accounting for write-offs and recoveries[132]. - The company’s credit loss judgments are based on known facts and involve estimates about future performance, which may be subject to change due to economic conditions[130]. - The company has a policy to review accounts aged over 90 days for potential impairment, indicating a proactive approach to managing credit risk[129]. Foreign Exchange and Financial Instruments - The company has established a series of foreign currency forward contracts to manage foreign exchange risk, with some contracts extending into 2024 and 2025[200]. - The company does not use any financial instruments for trading or speculative purposes, focusing instead on hedging against foreign exchange fluctuations[200]. - The company’s foreign exchange risk management strategy includes hedging tools that meet the criteria for hedge accounting as of June 30, 2024[200].

Market Performance - IMAX China achieved a market share of 3.9% in 2023, up from 3.4% in 2022, with a total box office revenue of RMB 11.9 billion (USD 1.7 billion) for local language films, a 50% increase compared to 2019[6][9][14]. - The film "Oppenheimer" contributed 30% of its total box office in the Greater China market, while "The First Part of Fengshen" and "The First Slam Dunk" each accounted for 10%[6][15]. - The company reported record box office revenues during the Spring Festival and summer seasons, with "The Wandering Earth 2" achieving the highest box office for a local language film[8][13]. - The box office for IMAX films in Greater China reached $239.5 million in 2023, up from $162.7 million in 2022[25]. - The revenue from Chinese-language films accounted for 61.5% of the box office in the fiscal year 2023, compared to 58.8% in 2022, indicating a growing preference for local content[64]. Film Offerings and Screenings - In 2023, IMAX China screened a total of 80 films, the highest in its history, with 57 films released in mainland China and 23 in Hong Kong and Taiwan[14]. - The number of IMAX films released in Greater China rose to 80 in 2023, compared to 45 in 2022, indicating a strong expansion in film offerings[133]. - The number of Hollywood films screened in mainland China increased to 22 in fiscal year 2023 from 10 in fiscal year 2022[80]. Revenue and Financial Performance - IMAX China recorded revenue of $87 million in the fiscal year 2023, an increase of $13.7 million compared to 2022[29]. - The total revenue for the fiscal year 2023 was $86.982 million, an increase from $73.330 million in 2022[112]. - The company reported a net other income of $0.2 million in 2023, recovering some losses from previous film investments[119]. - The company reported a total comprehensive income of $24.682 million for 2023, compared to a comprehensive loss of $8.712 million in 2022[124]. - The company recorded a profit of $27.5 million for fiscal year 2023, up from $10.8 million in fiscal year 2022[170]. Profitability and Margins - Adjusted profit for IMAX China was $29.8 million in 2023, compared to $12.4 million in 2022[29]. - The gross profit for technology products and services was $33.212 million, with a gross margin of 54.5% in 2023, up from 47.3% in 2022[115]. - The adjusted profit margin improved significantly to 34.3% in 2023 from 16.9% in 2022, indicating enhanced profitability[198]. Expansion and Network Development - IMAX China installed 22 new IMAX laser systems in collaboration with Hengdian Film and Television, aiming to increase the number of IMAX theaters in Greater China to over 1,000[7]. - The number of IMAX cinema systems in Greater China reached 1,013, surpassing the milestone of 1,000 cinemas, with 206 systems under contract[18]. - The company signed contracts for 28 new cinemas in 2023, including the largest system agreement in four years with 22 new laser systems[18]. - The company aims to continue expanding its network and enhancing partnerships with local filmmakers to strengthen its market position in 2024[9][10]. Revenue Sources and Business Model - The majority of the company's revenue is derived from mainland China, which is expected to be the primary source of future growth[60]. - The company has revised its reporting segments to include content solutions and technology products and services, reflecting a strategic shift in its business model[61]. - Revenue from content solutions for the fiscal year 2023 was $25.522 million, accounting for 29.4% of total revenue, up from $14.908 million (20.3%) in 2022[112]. - Revenue from technology products and services reached $60.898 million in 2023, representing 70.0% of total revenue, compared to $58.285 million (79.5%) in 2022[112]. Cash Flow and Financial Health - The net cash generated from operating activities for the fiscal year 2023 was approximately $12.5 million, a significant increase from $1.2 million in 2022, reflecting a growth of over 950%[181][193]. - The company anticipates continued growth in operating cash flow as the IMAX cinema network recovers and expands post-pandemic[193]. - The company's capital debt ratio decreased from 40.0% in 2022 to 25.1% in 2023, primarily due to an increase in equity of $21.3 million and a reduction in borrowings by $12.9 million[198][200]. Challenges and Market Conditions - Future revenue and cash flow may continue to be adversely affected by the pandemic and its impact on consumer behavior[79]. - The company has delayed several IMAX system installations due to ongoing uncertainties in the market[77]. - Approximately 29% of the uncompleted theater contracts are under sales and rental arrangements, 27% under full revenue-sharing arrangements, and 44% under mixed revenue-sharing arrangements[91].

Financial Performance - IMAX China reported total revenue of $86,982,000 for the year ended December 31, 2023, representing a 18.7% increase from $73,330,000 in 2022[5]. - The operating profit for the year was $32,227,000, up from $14,410,000 in the previous year, indicating a significant growth of 123.5%[5]. - Net profit attributable to the company's owners reached $27,501,000, compared to $10,758,000 in 2022, marking an increase of 155.5%[5]. - Basic and diluted earnings per share were both $0.08, up from $0.03 in the previous year[5]. - The total gross profit for the company was $54,533 million in 2023, up from $39,697 million in 2022, representing an increase of about 37.4%[19]. - The company reported a pre-tax profit of $33,673 million for the year ended December 31, 2023, compared to $15,281 million in 2022, reflecting a significant increase of approximately 120.7%[19]. - The net profit for the year ended December 31, 2023, was $27,501 million, up from $10,758 million in 2022, indicating an increase of 155%[31]. - The adjusted profit for the fiscal year 2023 was $29.8 million, compared to $12.4 million in 2022, reflecting a substantial increase[91]. - The operating profit margin improved to 37.1% in 2023 from 19.7% in 2022, indicating enhanced operational efficiency[89]. Revenue Segments - Revenue for the content solutions segment reached $25.522 million in 2023, up from $14.908 million in 2022, representing a growth of approximately 71.5%[18]. - Revenue for the technology products and services segment was $60.898 million in 2023, compared to $58.285 million in 2022, reflecting an increase of about 4.5%[18]. - Revenue from content solutions was $25.522 million, accounting for 29.4% of total revenue, up from $14.908 million (20.3%) in 2022[79]. - Revenue from technology products and services was $60.898 million, representing 70.0% of total revenue, compared to $58.285 million (79.5%) in 2022[79]. Expenses and Liabilities - Total expenses for the year ended December 31, 2023, amounted to $55,663 million, compared to $54,450 million in 2022, reflecting an increase of 2.2%[5]. - The total depreciation and amortization expenses for the year ended December 31, 2023, were $15.457 million, compared to $14.842 million in 2022, reflecting a rise of about 4.1%[25]. - Employee salaries and benefits increased to $11,443 million in 2023 from $9,478 million in 2022, representing a growth of 20.7%[5]. - Advertising and marketing expenses rose to $3,585 million in 2023, up from $2,954 million in 2022, reflecting an increase of 21.3%[5]. - Total liabilities decreased significantly to $63,905,000 from $93,331,000, a reduction of 31.6%[9][10]. Assets and Cash Flow - Total assets decreased to $318,276,000 as of December 31, 2023, from $326,403,000 in 2022, a decline of 2.9%[7][10]. - Cash and cash equivalents were reported at $62,711,000, down from $74,972,000 in 2022, a decrease of 16.3%[7]. - The net cash generated from operating activities for the fiscal year 2023 was approximately $12.5 million, a significant increase from $1.2 million in fiscal year 2022, reflecting a recovery in the IMAX cinema network post-pandemic[128][129]. - The net cash used in investing activities for fiscal year 2023 was approximately $3.8 million, primarily related to the installation of IMAX cinema equipment and acquisition of property, plant, and equipment[130]. - The net cash used in financing activities for fiscal year 2023 was approximately $19.7 million, mainly due to repayment of loans and dividend payments to shareholders[132]. Market Expansion and Strategy - The company plans to continue expanding its market presence in Greater China, focusing on digital cinema technology[11]. - IMAX China is actively pursuing new product development and technological advancements to enhance its cinema offerings[11]. - The company has expanded its IMAX cinema network to 807 locations in Greater China, with 206 additional cinemas under contract[50]. - The company plans to continue its strategy of collaborating with local filmmakers to produce "IMAX special shoots" in 2024 and beyond[52]. - The company aims to increase the number of Chinese films screened annually and the percentage of box office revenue generated from these films[58]. Risks and Challenges - The company faces risks from changes in the overall political, social, and economic conditions in Greater China, which could negatively impact future revenue and cash flow[71]. - Global inflationary pressures and supply chain disruptions could significantly increase the company's costs, affecting overall operational expenses[72]. - The company relies on commercial film exhibitors to purchase or lease IMAX systems, and any reduction in their business or unfavorable economic terms could negatively impact revenue growth[169]. - The company has exposure to foreign exchange rate fluctuations, with most revenues denominated in USD and expenses in CAD, which may affect profitability[175]. Corporate Governance and Shareholder Relations - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[148]. - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023[152]. - IMAX Corporation, the company's controlling shareholder, owns 71.55% of the issued share capital as of the announcement date[153]. Film and Content Strategy - The company screened 95 new IMAX films globally in 2023, relying heavily on third-party producers for content[168]. - The number of local language films released in 2023 increased to 59, up from 36 in 2022, with a notable rise in Chinese films from 15 to 28[158]. - The company has signed agreements with international film studios to convert their films for IMAX format, but the selection of films may not guarantee box office success in specific markets[169]. - The company plans to release an additional 24 films in 2024, including major titles like "Dune 2" and "Kung Fu Panda 4," with several being shot specifically for IMAX[159].

Financial Performance - IMAX China reported a significant recovery in operations with the resumption of normal cinema operations in the first half of 2023 following the easing of COVID-19 restrictions[10]. - Total revenue for the first half of the fiscal year 2023 was $45,342 thousand, a 38.6% increase from $32,713 thousand in the same period of 2022[19]. - Adjusted profit for the first half of 2023 was $15,085 thousand, significantly higher than $2,109 thousand in the same period of 2022[21]. - The company reported a net profit attributable to shareholders of $13,876 thousand, compared to $766 thousand in the first half of 2022[19]. - Gross profit for the first half of 2023 was $28,718 thousand, with a gross margin of 63.3%, compared to $18,625 thousand and 56.9% in the same period of 2022[19]. - Operating profit surged to $16,429 thousand, compared to $2,124 thousand in the prior year, reflecting a significant increase of 675.5%[176]. - The company reported a profit of $13,876,000 for the period, contributing to a total comprehensive income of $6,865,000 after foreign currency translation adjustments[180]. Revenue Segments - The company generated revenue primarily from two segments: content solutions and technology products and services, with a notable increase in IMAX box office revenue from Hollywood and Chinese films[8]. - Content Solutions revenue reached $14,178 thousand, accounting for 31.3% of total revenue, compared to $6,519 thousand and 19.9% in the prior year[11]. - Technology Products and Services revenue was $30,896 thousand, representing 68.1% of total revenue, up from $26,112 thousand and 79.8% year-over-year[11]. - IMAX's revenue from content solutions is based on a percentage of box office receipts from its cinema network, which has shown improvement as cinema operations normalize[9]. - Technology products and services revenue grew from $26.1 million in the first half of fiscal 2022 to $30.9 million in the first half of fiscal 2023, reflecting an 18.4% increase driven by higher sales and revenue-sharing arrangements[25]. Challenges and Risks - The company faced challenges with overdue payments from some cinema partners due to financial difficulties caused by the pandemic, impacting cash flow and revenue recognition[10]. - Future revenue and cash flow remain uncertain due to potential ongoing impacts from COVID-19 and changing consumer behavior[10]. - The company continues to monitor the evolving economic environment and its effects on cinema partners' financial stability and payment capabilities[10]. - The company has delayed installations of several IMAX systems due to pandemic-related disruptions, which may affect future revenue streams[10]. Cash Flow and Assets - Cash flow from operating activities for the first half of 2023 was $12.0 million, a turnaround from a cash outflow of $4.2 million in the same period of 2022[55][57]. - As of June 30, 2023, current assets totaled $180.4 million, up from $174.2 million as of December 31, 2022, primarily due to an increase in trade and other receivables by $7.2 million[52]. - The net cash and cash equivalents balance as of June 30, 2023, was $73.6 million, a slight decrease from $75.0 million at the end of 2022[53]. - The company reported a foreign currency translation adjustment loss of $7,011 thousand, an improvement from a loss of $12,519 thousand in the previous year[176]. Corporate Governance and Management - The company has committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[78]. - The Compensation Committee reviewed proposed amendments to the stock option plan, restricted share unit plan, and performance share unit plan, recommending approval to the board[84]. - Daniel Wade Manwaring has been appointed as the CEO effective January 9, 2023, succeeding the previous CEO[173]. - The company appointed Mr. Daniel Manwaring as CEO effective January 9, 2023[15]. Shareholder Information - IMAX Corporation announced a proposal to acquire all outstanding shares of IMAX China for approximately $124 million, representing a 49% premium over the average closing price over the last 30 trading days[67]. - As of June 30, 2023, IMAX Corporation holds 243,262,600 shares, representing approximately 71.63% of the company's equity[142]. - The company has a total of 15,890,436 options and awards available under its long-term incentive plan as of January 1, 2023, which was updated to 33,959,314 shares on June 7, 2023[145]. Credit Risk and Financial Management - The expected credit loss provision recorded for the six months ended June 30, 2023, was $0.8 million, an increase from $0.6 million in 2022, reflecting a decline in credit quality due to the global COVID-19 pandemic[193]. - The company has categorized its customers into four credit quality categories, with "Credit Outstanding" indicating good relationships and timely payments[192]. - The credit risk associated with other receivables from third parties and related parties is considered low, with provisions only for expected losses over a 12-month period[193]. - The financial risk management plan aims to mitigate market risks, including foreign exchange and interest rate risks, as approved by the board of directors[189].

Revenue Growth - Revenue for the six months ended June 30, 2023, was $45,342 million, representing a 38.6% increase from $32,713 million in the same period of 2022[3]. - For the six months ended June 30, 2023, total revenue from reportable segments was $45.074 million, up from $32.631 million in the same period of 2022, representing an increase of approximately 38%[20]. - Total revenue for the first half of 2023 reached $184.925 million, compared to $134.004 million in the same period of 2022, marking a 38.2% increase[120]. - Total revenue for the six months ended June 30, 2023, was $59.3 million, up from $47.1 million in 2022, representing a 25.0% increase[173]. Profitability - Gross profit for the same period was $28,718 million, up 54.3% from $18,625 million year-over-year[4]. - Operating profit surged to $16,429 million, compared to $2,124 million in the prior year, marking a significant increase of 675.5%[5]. - Profit attributable to owners of the company reached $13,876 million, a substantial rise from $766 million in the previous year[6]. - The company reported a net profit for the first half of fiscal 2023 of $13.9 million, compared to a profit of $0.8 million in the first half of fiscal 2022[83]. Earnings Per Share - Basic and diluted earnings per share were both $0.04, compared to $0.00 for the same period last year[6]. - The company reported a basic and diluted earnings per share of $0.15 for Q2 2023, compared to a loss of $0.05 per share in Q2 2022[121]. Financial Position - Total assets as of June 30, 2023, were $319,350 million, a decrease from $326,403 million at the end of 2022[8]. - Total liabilities decreased to $83,950 million from $93,331 million at the end of 2022, indicating improved financial health[12]. - The company reported cash and cash equivalents of $73,559 million, slightly down from $74,972 million at the end of 2022[9]. - As of June 30, 2023, the company had total equity of $42.7 million, with no interim dividend declared for the six months ended June 30, 2023[104][105]. Segment Performance - The content solutions segment generated revenue of $14.178 million for the six months ended June 30, 2023, compared to $6.519 million in 2022, reflecting a growth of about 117%[20]. - The technology products and services segment reported revenue of $30.896 million for the six months ended June 30, 2023, compared to $26.112 million in 2022, indicating an increase of approximately 18%[20]. - The content solutions segment generated $14.178 million, accounting for 31.3% of total revenue, compared to $6.519 million and 19.9% in the previous year[46]. - The technology products and services segment contributed $30.896 million, representing 68.1% of total revenue, up from $26.112 million and 79.8% in the prior year[46]. Cash Flow and Investments - In the first half of the 2023 fiscal year, the company reported a net cash inflow from operating activities of approximately $12.0 million, compared to a net cash outflow of $4.2 million in the same period of 2022[91][92]. - Cash used in investing activities for the first half of 2023 was approximately $1.8 million, primarily related to the installation of IMAX cinema equipment[93]. - Cash used in financing activities for the first half of 2023 amounted to approximately $9.7 million, mainly due to dividend payments of $5.1 million and loan repayments of $3.9 million[95]. Taxation - The total income tax expense for the six months ended June 30, 2023, was 2,997 million, compared to 2,038 million for the same period in 2022, indicating an increase of approximately 47.2%[27]. - The company recorded a tax expense of $8.3 million for the six months ended June 30, 2023, compared to $5.7 million in 2022, reflecting a 45.6% increase[178]. Challenges and Market Conditions - The company faced challenges in revenue collection due to financial difficulties experienced by some exhibitor partners as a result of the COVID-19 pandemic[45]. - The impact of the COVID-19 pandemic on the company's business and financial performance remains uncertain, depending on various unpredictable factors[44]. - Management is optimistic about the recovery of the cinema industry in China, with a strong lineup of films scheduled for the remainder of 2023[44]. Shareholder Actions - The company declared a dividend of $5,087 million for the year-end dividend of 2022, which is $0.015 per share, while no dividend was proposed for the six months ending June 30, 2023[38]. - IMAX Corporation announced a proposal to acquire all outstanding shares of IMAX China at approximately HKD 10 per share, representing a premium of about 49% over the average closing price for the last 30 trading days[99]. Accounting and Reporting - The company has not adopted several new accounting standards that are effective from January 1, 2024, which are not expected to have a significant impact on future reporting periods[18]. - The company revised its internal segment reporting to include two reportable segments: content solutions and technology products and services, reflecting a strategic shift in its operational focus[40].

Box Office Performance - IMAX China achieved a record box office of RMB 231 million during the Spring Festival, a year-on-year increase of 54%[3] - As of February 19, 2023, IMAX has generated over RMB 86 million in box office revenue in mainland China, surpassing half of the total box office for the entire year of 2022[3] - The average box office share for IMAX films during their opening weekend in 2022 was 17%, an increase from 14% in the previous year[3] - IMAX China's total box office in 2022 decreased by 32% to $163 million due to pandemic-related cinema closures and a decline in film releases[6] - The box office contribution from Hollywood films in China reached 17% in 2022, up from 14% in 2021[6] - IMAX's box office for the film "Avatar: The Way of Water" exceeded $52 million in China, marking the second highest in IMAX history[6] - The number of IMAX theaters in Greater China reached 794, with 204 systems under contract as of December 31, 2022[8] - IMAX票房占比在中国市场上升至6%，其中《长津湖》成为中国影史票房最高影片，总票房达人民币57.8亿元[19] - 《阿凡达：水之道》在中国市场的IMAX票房占比达到22%，创下好莱坞影片在中国首映的纪录[19] - IMAX的本地语言影片《流浪地球2》票房为人民币39.4亿元，IMAX票房占比为9%[19] Financial Performance - IMAX's net profit recommendation for the year is approximately USD 5.1 million, with a dividend payout ratio of 50%[4] - The adjusted net profit for 2022 was $12.4 million, despite a 35% decline in revenue to $73.3 million[16] - IMAX's total revenue for the fiscal year 2022 was $73.33 million, a decrease from $112.80 million in 2021[67] - Total revenue decreased from $112.8 million in fiscal year 2021 to $73.3 million in fiscal year 2022, a decline of 35.0%[79] - The company reported a significant increase in user data metrics, indicating a growing audience for its offerings[141] - The total comprehensive income attributable to the company's owners for fiscal year 2022 was a loss of $8.7 million, compared to a profit of $47.0 million in fiscal year 2021[76] - The company recorded a net loss of $8.7 million in comprehensive income for FY2022, compared to a comprehensive income of $47.0 million in FY2021[110] - The income tax expense for 2022 was $4.5 million, a decrease from $12.3 million in 2021[75] Revenue Streams - Revenue is primarily generated from two segments: IMAX technology network and IMAX technology sales and maintenance[64] - IMAX technology network revenue includes income from IMAX DMR films and revenue-sharing arrangements with exhibitors[65] - IMAX technology sales and maintenance revenue includes fixed income from sales and leasing arrangements, maintenance services, and aftermarket sales[66] - IMAX's technology sales and maintenance revenue is not directly tied to box office results, indicating a diversified revenue stream[42] - The revenue from IMAX DMR films was $14.91 million in 2022, accounting for 20.3% of total revenue, compared to $21.75 million and 19.3% in 2021[67] - IMAX technology network revenue fell from $39.4 million in fiscal year 2021 to $25.3 million in fiscal year 2022, a decrease of 35.8%[80] - Revenue share arrangements decreased from $17.6 million in fiscal year 2021 to $10.4 million in fiscal year 2022, a reduction of 40.9%[83] - IMAX technology sales and maintenance revenue declined from $73.0 million in fiscal year 2021 to $47.9 million in fiscal year 2022, a decrease of 34.4%[84] Market Expansion and Strategy - IMAX plans to release a more diverse slate of films in 2023, including "The King of the Sky" and "The Legend of the Gods" series[4] - IMAX China is positioned to benefit from the resurgence of Hollywood films in the Chinese market, with several major titles scheduled for release in 2023[3] - The company plans to expand its IMAX theater network in mainland China, including the rollout of IMAX laser technology and additional laser cinema system products[46] - The company aims to increase the number of Chinese-language films screened annually and the percentage of total box office revenue derived from these films[45] - The company has established partnerships with over 80 exhibitors, including major players like Wanda Film and Alibaba Pictures, to enhance its market presence[44] - The company plans to promote revenue-sharing arrangements to high-quality exhibitors with a successful track record and significant box office potential[57] - The company has identified about 1,400 IMAX regions in Greater China, where typically only one IMAX theater will be installed per region[55] Management and Governance - Richard Gelfond has been the non-executive chairman since May 27, 2015, and is the CEO of IMAX Corporation, providing strategic guidance[136] - The board includes independent directors such as Jin Yu Xi and John Marshal Davison, contributing to corporate governance and oversight[136] - The leadership team has extensive experience in the entertainment and finance sectors, enhancing the company's strategic direction[138] - The company is committed to maintaining high standards of corporate governance and transparency in its operations[142] - The board's diverse expertise supports the company's long-term growth and adaptation to market changes[136] Challenges and Risks - The overall economic and market conditions in mainland China may reduce revenue from existing IMAX systems and demand for new IMAX systems, impacting future income and cash flow[58] - A decline in consumer discretionary income due to geopolitical tensions, inflation, or other factors could negatively affect consumer demand for IMAX movie viewings[59] - The ability to maintain pricing and profit margins is crucial, as fixed costs related to IMAX technology may lead to adverse impacts on profitability if revenue decreases significantly[60] - The company acknowledges that economic downturns may increase the risk of customers not accepting the delivery of IMAX theater systems[55] Technology and Innovation - The IMAX laser network currently covers 104 theaters, enhancing the viewing experience with higher resolution and better picture quality[43] - The company emphasizes digital transformation and innovation in its cinema offerings, aligning with industry trends[138] - IMAX's focus on developing new products and technologies to enhance the cinematic experience is a key part of its future outlook[143] Dividends and Shareholder Returns - The company plans to pay a final dividend of $0.015 per share, reflecting a payout ratio of 50%[16] - The company declared a final dividend of $0.015 per share for the fiscal year 2022, expected to be paid on or around June 23, 2023, subject to shareholder approval[156] - The interim dividend for the first half of fiscal year 2022 was $0.001 per share, equivalent to $0.008 HKD[156] - The final dividend for the fiscal year 2021 was $0.027 per share, equivalent to $0.210 HKD[156]