Financial Performance - Total revenue for the six months ended June 30, 2021, was $53.431 million, a significant increase from $6.662 million in the same period of 2020[6]. - Gross profit for the same period was $33.123 million, compared to a gross loss of $4.042 million in 2020, resulting in a gross margin of 62.0%[6]. - The company reported a net profit of $19.198 million for the first half of 2021, a turnaround from a net loss of $35.248 million in 2020, with a net profit margin of 35.9%[6]. - Adjusted EBITDA for the first half of 2021 was $33.797 million, representing an adjusted EBITDA margin of 63.3%, compared to an adjusted EBITDA loss of $13.424 million in 2020[6]. - Operating profit improved to $24.96 million in the first half of the 2021 fiscal year from a loss of $22.4 million in the first half of the 2020 fiscal year[22]. - Adjusted profit for the first half of the 2021 fiscal year was $21.31 million, compared to a loss of $15.51 million in the first half of the 2020 fiscal year[24]. - The company recorded a total comprehensive income of $25.436 million for the six months ended June 30, 2021, compared to a total comprehensive loss of $40.460 million in the prior year[181]. Revenue Sources - Total box office revenue reached $132.828 million, a substantial increase from $7.393 million in the prior year[6]. - IMAX DMR film revenue was $11.493 million, accounting for 21.5% of total revenue, compared to $701, which was 10.5% of total revenue in the first half of 2020[12]. - IMAX technology network revenue rose from $1.1 million in the first half of the 2020 fiscal year to $21.7 million in the first half of the 2021 fiscal year, primarily due to a $125.4 million increase in box office revenue[26]. - Revenue share arrangements and contingent rents generated $10.210 million, representing 19.1% of total revenue, compared to $419, which was 6.3% of total revenue in the first half of 2020[12]. - IMAX technology sales and maintenance revenue increased from $5.4 million in the first half of fiscal 2020 to $31.7 million in the first half of fiscal 2021[30]. Operational Metrics - The company installed a total of 23 cinema systems in the first half of 2021, compared to 3 systems in the same period of 2020[6]. - The number of IMAX theaters grew from 714 in the first half of the 2020 fiscal year to 759 in the first half of the 2021 fiscal year, representing a 6.3% increase[27]. - The average revenue per new system from sales and rental arrangements increased from $1.2 million to $1.5 million, attributed to installations from large clients[33]. - The installation and maintenance business in mainland China returned to pre-pandemic levels as of June 30, 2021, with potential future impacts from COVID-19 outbreaks still a concern[11]. Cash Flow and Assets - The cash and cash equivalents balance as of June 30, 2021, was $115.25 million, up from $88.47 million as of December 31, 2020, reflecting a net increase of $26.78 million during the period[63]. - The company reported a net cash inflow from operating activities of approximately $16.1 million for the first half of the 2021 fiscal year, compared to a net cash outflow of $3.8 million in the same period of 2020[64]. - Investment activities generated a net cash inflow of approximately $15.0 million in the first half of 2021, mainly from the sale of investments, offset by $2.7 million invested in installing IMAX cinema equipment[66]. - As of June 30, 2021, the company's total current liabilities increased to $62.10 million as of June 30, 2021, from $59.48 million as of December 31, 2020, reflecting a rise of approximately 2.7%[60]. Financial Risks and Management - Financial risks include market risks (foreign exchange and interest rate risks), credit risks, and liquidity risks, which the company actively manages[191]. - The group faces foreign exchange risk primarily involving USD and RMB, with a potential impact of approximately $0.3 million on net performance if RMB appreciates/depreciates by 10% against USD[192]. - The group's floating-rate borrowings are exposed to interest rate risk, with a potential change of about $4,000 in after-tax profit for a 10 basis point change in interest rates[193]. - The company has implemented measures to support local film partners facing financial difficulties due to the pandemic, including waiving maintenance fees during theater closures[191]. Shareholder and Corporate Governance - The board recommended an interim dividend of USD 0.028 per share (approximately HKD 0.217) for the first half of the 2021 fiscal year[79]. - IMAX Corporation is the controlling shareholder of IMAX Barbados, which holds over 10% of the company's equity, thus qualifying as a related party under listing rules[96]. - The company is committed to complying with the listing rules regarding related party transactions, including reporting and independent shareholder approval as necessary[97]. - The company has maintained the required public float as per the listing rules throughout the reporting period[89]. Employee and Compensation Policies - The company aims to attract and retain talent through a compensation policy linked to annual performance[157]. - The total number of restricted stock units granted as of June 30, 2021, is 2,281,669, with 780,408 units vested and 592,379 units exercised[172]. - The performance-linked restricted stock units are subject to performance conditions over a three-year period, with potential additional units based on achieving an average annual EBITDA growth rate exceeding 12.5%[176]. Agreements and Contracts - The technology licensing agreement grants IMAX Shanghai Multimedia exclusive rights in China and IMAX Hong Kong in Hong Kong, Macau, and Taiwan for 25 years, renewable[109]. - The DMR service agreement has a term of 25 years, with an option to renew for an additional 25 years[117]. - The main issuance agreement allows IMAX Shanghai Multimedia and IMAX Hong Kong to screen Hollywood films in IMAX format, with fees based on a percentage of box office revenue[138].
IMAX CHINA(01970) - 2021 - 中期财报