Financial Performance - IMAX China reported revenue of $57,802,000 for the six months ended June 30, 2025, representing a 31.7% increase from $43,901,000 in the same period of 2024[6]. - The gross profit for the same period was $40,100,000, up 59.7% from $25,102,000 year-over-year[6]. - Operating profit increased to $30,196,000, compared to $15,592,000 in the prior year, marking a 93.5% growth[6]. - The net profit attributable to the company's owners was $23,893,000, a significant rise of 88.6% from $12,648,000 in 2024[6]. - For the six months ended June 30, 2025, total revenue was $57.802 million, a 31.6% increase from $43.901 million in the same period of 2024[25]. - The group reported a profit before tax of $31.024 million, which is a 88.5% increase from $16.449 million in the same period of 2024[25]. - The adjusted profit for the first half of 2025 was $24.8 million, compared to $13.4 million in the first half of 2024, reflecting a substantial increase[58]. - The total comprehensive income attributable to the company's owners for the first half of 2025 was $25.3 million, up from $12.1 million in the first half of 2024[56]. - The net profit for the first half of fiscal 2025 was $23.9 million, compared to $12.6 million in the first half of fiscal 2024[90]. Revenue Segments - Content Solutions revenue reached $20.801 million, up 122% from $9.346 million in the prior year[25]. - Technical Products and Services revenue was $36.230 million, a 6.3% increase compared to $34.075 million in 2024[25]. - The company's revenue primarily comes from two main segments: content solutions and technology products and services, with significant contributions from Hollywood and Chinese film partnerships[42]. - Revenue from technology products and services was $36.230 million, accounting for 62.7% of total revenue, compared to $34.075 million and 77.6% in the same period of the previous year[46]. - Content solutions revenue surged by 123.7%, rising from $9.3 million in the first half of 2024 to $20.8 million in the first half of 2025, driven by increased box office revenue and a higher proportion of local language films[59]. - Revenue from IMAX film conversion and distribution arrangements totaled $28.7 million and $60.4 million for the three and six months ended June 30, 2025, respectively, compared to $21.3 million and $51.0 million in the same periods of 2024[183]. Assets and Liabilities - Total assets as of June 30, 2025, were $358,266,000, an increase from $333,573,000 at the end of 2024[7]. - Cash and cash equivalents rose to $94,172,000, compared to $80,049,000 at the end of 2024, reflecting a 17.6% increase[7]. - Total liabilities remained relatively stable at $59,826,000, compared to $59,469,000 in the previous year[8]. - The company's equity increased to $298,440,000 from $274,104,000, indicating a growth of 8.9%[8]. - The total current liabilities as of June 30, 2025, were $34.8 million, slightly up from $34.0 million on December 31, 2024[93]. - The total liabilities to IMAX Corporation increased to $15,795 million as of June 30, 2025, compared to $13,565 million as of December 31, 2024, representing an increase of about 16.4%[38]. Cash Flow and Investments - The net cash generated from operating activities for the first half of the 2025 fiscal year was approximately $19.3 million, compared to $19.7 million in the same period of 2024[96]. - The company invested approximately $3.2 million in capital expenditures during the first half of the 2025 fiscal year, primarily for the installation of IMAX cinema equipment[99]. - The company plans to allocate most of its capital expenditures towards upgrading and expanding its IMAX cinema network under revenue-sharing arrangements[105]. - The company’s cash flow from operating activities was impacted by a $13.8 million change in working capital during the first half of 2025[97]. Shareholder Returns and Stock Options - No dividends were recommended for the six months ended June 30, 2025, or June 30, 2024[40]. - The company repurchased a total of 1,495,900 shares at an average price of HKD 7.46, totaling HKD 11,268,714[124]. - The company has authorized a share repurchase program allowing the buyback of up to 10% of its issued shares, totaling approximately 33,919,122 shares, effective until the 2026 annual general meeting[193]. - The company had 1,950,169 unexercised stock options as of June 30, 2025, down from 2,720,540 in 2024, indicating a reduction of approximately 28.3%[188]. Taxation and Expenses - The effective tax expense for the six months ended June 30, 2025, was $7.131 million, compared to $3.801 million in the same period of 2024[33]. - The income tax expense for the first half of 2025 was $7.1 million, significantly higher than $3.8 million in the same period of 2024[55]. - The company recorded an income tax expense of $1.2 million for the three months ended June 30, 2025, with an effective tax rate of 8.9%, and an income tax expense of $8.5 million for the six months ended June 30, 2025, with an effective tax rate of 29.4%[184]. Credit and Receivables - The total trade receivables as of June 30, 2025, amounted to $91,295 million, up from $75,913 million as of December 31, 2024, indicating a growth of approximately 20.2%[36]. - The net trade receivables from third parties were $39,806 million as of June 30, 2025, compared to $29,931 million as of December 31, 2024, reflecting a significant increase of about 33.1%[36]. - The company assesses credit quality through initial credit evaluations and regular monitoring, including monthly meetings to identify potential credit issues[153]. - The company recorded a net provision (reversal) of $0.172 million for the three months ended June 30, 2025, compared to a net reversal of $0.078 million for the same period in 2024[156]. Research and Development - Research and development expenses for the six months ended June 30, 2025, were $2,860 thousand, a decrease from $4,218 thousand in 2024, showing a reduction of 32.3%[142].
IMAX CHINA(01970) - 2025 - 中期业绩