Financial Performance - Total box office revenue for 2020 decreased by 72.9% to $99.2 million due to cinema closures and delayed Hollywood releases[9]. - The revenue for the Greater China region in the fiscal year 2020 was $52.3 million, a decrease of 57.9% year-over-year, with an adjusted net loss of $4.6 million[21]. - IMAX China reported total revenue of $52.33 million for 2020, a decrease of 57.9% compared to $124.29 million in 2019[47]. - The gross profit for 2020 was $19.35 million, down 74.8% from $76.65 million in the previous year, resulting in a gross margin of 37.0%[47]. - The company experienced a net loss of $26.74 million in 2020, representing a 162.3% increase in losses compared to a profit of $42.89 million in 2019[47]. - Adjusted EBITDA for 2020 was $7.78 million, a decline of 88.7% from $68.83 million in 2019, with an adjusted EBITDA margin of 14.9%[47]. - The company incurred a tax expense of $18.1 million in FY2020, up from $12.0 million in FY2019[86]. - The total comprehensive loss attributable to the company’s owners for FY2020 was $(14.7) million, compared to a comprehensive income of $36.6 million in FY2019[86]. Box Office and Market Share - In 2020, IMAX China generated box office revenue of approximately RMB 9.2 million, increasing market share from 2.8% to 3.6% compared to the same period last year[4]. - The market share of local films in IMAX increased to 2.7% in 2020, up 70 basis points from the previous year[4]. - The box office for the first weekend of the Chinese New Year broke records, increasing by approximately 45% compared to 2019[4]. - The Chinese Spring Festival box office reached a record of RMB 7.8 billion, with attendance of 160 million people[9]. - The revenue share from Chinese-language films increased from 31.4% to 66.3% year-over-year due to the pandemic's impact on Hollywood film releases[53]. - The top ten box office films in China for 2020 were all Chinese-language films, which were part of the IMAX lineup[68]. Network Expansion - IMAX China signed agreements with 38 theaters during the year, including 20 with Wanda and 12 with Jin Yi[4]. - The company expanded its network to 745 theaters across over 200 cities, achieving a penetration rate of 1.2%, an increase of 20 basis points year-on-year[4]. - IMAX China expects to reach over 1,000 theaters with 251 additional systems under contract by the end of 2020[6]. - The IMAX network in Greater China reached 996 theaters, with 251 systems under contract as of December 31, 2020[12]. - The number of IMAX cinema systems in the backlog decreased from 253 as of December 31, 2019, to 251 as of December 31, 2020[65]. - The number of IMAX cinemas under revenue-sharing agreements increased from 463 as of December 31, 2019, to 482 as of December 31, 2020[67]. Technology and Innovation - IMAX's laser projection system enhances the viewing experience with higher brightness, improved contrast, and a wider color gamut, contributing to its competitive advantage in the market[29]. - IMAX's laser system was installed in 8 new theaters and upgraded in 3 existing theaters in 2020, expanding the IMAX laser network to 50 theaters[55]. - The company specializes in digital and film animation technology within the entertainment industry[164]. - The company is focused on developing new technologies and products to enhance the cinematic experience, aligning with industry trends[156]. Strategic Focus and Partnerships - The company collaborates with approximately 80 exhibitors, including major players like Wanda Film and Guangzhou Jin Yi, leveraging unique relationships with Hollywood studios[56]. - IMAX's strategic focus remains on Chinese-language films, which resonate well with local audiences, especially in lower-tier cities[53]. - The company aims to enhance strategic revenue-sharing arrangements with exhibitor partners, which are expected to yield significant returns[58]. - The company plans to promote revenue-sharing arrangements to high-quality cinema operators with proven box office potential[70]. Cash Flow and Financial Management - The company continues to implement proactive cash management measures to preserve sufficient cash amid uncertainties related to the pandemic[60]. - The net cash generated from operating activities for the fiscal year 2020 was approximately $9.2 million, a significant decrease from $39.3 million in 2019[128]. - The company plans to utilize existing liquidity and raise additional funds as needed to support ongoing operations and administrative expenses[127]. - The company has drawn RMB 50 million (approximately $7.6 million) from its unsecured revolving credit facility as of December 31, 2020[137]. Leadership and Governance - The company aims to expand its leadership and participation in the Greater China region under the management of its CEO, Chen Yuanpeng[152]. - The board of directors includes members with extensive experience in the film and entertainment industry, contributing to strategic guidance and operational management[150]. - The company has a strong leadership team with significant experience in the film and entertainment sectors, contributing to its operational strategies[153][154]. Dividend and Shareholder Returns - The board proposed a final dividend of $0.02 per share for 2020, consistent with the previous year, and plans to increase the payout ratio from 33% to 50% starting in 2021[21]. - The company declared a final dividend of USD 0.02 per share, equivalent to approximately HKD 0.155 per share, for the fiscal year 2020[170]. Challenges and Risks - The pandemic significantly impacted the company's revenue, profit, and operating cash flow, leading to a substantial decline in total box office revenue[60]. - The company assessed the recoverability of receivables, resulting in an expected credit loss provision of $10.9 million for the year 2020[61]. - The performance of new IMAX cinemas is closely tied to the real estate market, with potential demand fluctuations impacting business outlook[71].
IMAX CHINA(01970) - 2020 - 年度财报