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].
IMAX CHINA(01970) - 2024 - 中期业绩