Revenue Performance - Total revenue for the first half of the fiscal year 2024 was $43.901 million, a decrease of 1.0% from $45.342 million in the same period of 2023[10]. - The group's revenue decreased from $45.3 million in the first half of the 2023 fiscal year to $43.9 million in the first half of the 2024 fiscal year, a decline of 3.1%[21]. - Content solutions revenue fell by 34.5%, from $14.2 million in the first half of 2023 to $9.3 million in the first half of 2024, primarily due to a decrease in box office revenue[22]. - Revenue from content solutions was $9.346 million, accounting for 21.3% of total revenue, down from 31.3% in the previous year[10]. - Revenue from technology products and services increased to $34.075 million, representing 77.6% of total revenue, up from 68.1% in the same period last year[10]. - IMAX format film box office revenue decreased by 35.0%, from $165.2 million in the first half of 2023 to $107.5 million in the first half of 2024[22]. - Technical products and services revenue increased by 10.4%, from $30.9 million in the first half of 2023 to $34.1 million in the first half of 2024[24]. Profitability Metrics - Gross profit for the first half of 2024 was $25.102 million, with a gross margin of 57.2%, down from 63.3% in the same period of 2023[13]. - Adjusted profit decreased from $15.1 million in the first half of 2023 to $13.4 million in the first half of 2024[20]. - The company reported a net profit of $12.6 million for the first half of fiscal 2024, compared to $13.9 million in the same period of fiscal 2023[47]. - Operating profit decreased to $15,592 thousand, compared to $16,429 thousand in the previous year, reflecting a decline of 5.1%[168]. - Net profit attributable to the company's owners was $12,648 thousand, a decrease of 8.9% from $13,876 thousand in 2023[168]. Cost of Sales - The cost of sales for content solutions was $2.303 million, which is 24.6% of its revenue, compared to 14.0% in the previous year[12]. - The cost of sales for technology products and services was $15.967 million, accounting for 46.9% of its revenue, slightly up from 45.8% in the previous year[12]. - The company reported a total cost of sales of $18.799 million, which is 42.8% of total revenue, compared to 36.7% in the previous year[12]. - The cost of sales increased from $16.6 million in the first half of fiscal 2023 to $18.8 million in the first half of fiscal 2024, an increase of 13.3%[31]. Expenses and Taxation - Total sales, general, and administrative expenses decreased from $8.979 million (19.8% of total revenue) in the first half of 2023 to $6.821 million (15.5% of total revenue) in the first half of 2024[18]. - Income tax expenses increased from $3.0 million in the first half of 2023 to $3.8 million in the first half of 2024[17]. - The net impairment loss on financial assets was $0.4 million in the first half of 2024, down from $0.8 million in the first half of 2023[16]. Cash Flow and Assets - Operating cash flow for the first half of the fiscal year 2024 was approximately $19.7 million, an increase from $12.0 million in the same period of fiscal year 2023, representing a 64.6% growth[53][54]. - Total current assets increased to $194.7 million as of June 30, 2024, compared to $183.8 million as of December 31, 2023, primarily due to a $14.7 million increase in cash and cash equivalents[49]. - Cash and cash equivalents increased to $77,457 thousand from $62,711 thousand at the end of 2023, representing a growth of 23.5%[170]. - The company incurred a net cash outflow from investing activities of $3,216,000 for the six months ended June 30, 2024, compared to $1,773,000 in the same period of 2023[174]. Equity and Shareholder Information - Total equity as of June 30, 2024, was $40.5 million[68]. - The board decided not to declare any interim dividend for the six months ended June 30, 2024[68]. - The company has not identified any significant issues in its interim financial data that would contravene International Accounting Standard 34[167]. - The company has established a reward mechanism linking compensation to annual performance, aiming to incentivize and reward outstanding performance[139]. Related Party Transactions - IMAX Corporation charged zero dollars to the group under the personnel secondment agreement for the six months ending June 30, 2024[85]. - IMAX Corporation received approximately $905,000 from the group under the trademark licensing agreement for the six months ending June 30, 2024[90]. - The company engaged in related party transactions with IMAX Corporation, which is considered a connected person under listing rules[83]. Financial Risk Management - The company’s financial risk management plan aims to mitigate potential adverse impacts on financial performance due to market unpredictability[180]. - The company has established policies to ensure credit is granted only to counterparties with sound credit records, continuously assessing their credit quality[181]. - The expected credit loss provision for the six months ended June 30, 2024, was approximately $0.4 million, a decrease from $0.8 million in 2023, indicating a decline in credit quality related to certain trade receivables[183]. Employee and Management Information - As of June 30, 2024, the company has approximately 95 employees, all based in Greater China, and aims to attract and retain talent through a performance-linked compensation policy[139]. - The company has undergone changes in its board of directors, with several resignations and appointments effective in early 2024[165]. - The company appointed Daniel Manwaring as an executive director effective February 27, 2024[12].
IMAX CHINA(01970) - 2024 - 中期财报