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(01970) - 2024 - 年度业绩