Market Performance - IMAX China achieved a market share of 3.9% in 2023, up from 3.4% in 2022, with a total box office revenue of RMB 11.9 billion (USD 1.7 billion) for local language films, a 50% increase compared to 2019[6][9][14]. - The film "Oppenheimer" contributed 30% of its total box office in the Greater China market, while "The First Part of Fengshen" and "The First Slam Dunk" each accounted for 10%[6][15]. - The company reported record box office revenues during the Spring Festival and summer seasons, with "The Wandering Earth 2" achieving the highest box office for a local language film[8][13]. - The box office for IMAX films in Greater China reached $239.5 million in 2023, up from $162.7 million in 2022[25]. - The revenue from Chinese-language films accounted for 61.5% of the box office in the fiscal year 2023, compared to 58.8% in 2022, indicating a growing preference for local content[64]. Film Offerings and Screenings - In 2023, IMAX China screened a total of 80 films, the highest in its history, with 57 films released in mainland China and 23 in Hong Kong and Taiwan[14]. - The number of IMAX films released in Greater China rose to 80 in 2023, compared to 45 in 2022, indicating a strong expansion in film offerings[133]. - The number of Hollywood films screened in mainland China increased to 22 in fiscal year 2023 from 10 in fiscal year 2022[80]. Revenue and Financial Performance - IMAX China recorded revenue of $87 million in the fiscal year 2023, an increase of $13.7 million compared to 2022[29]. - The total revenue for the fiscal year 2023 was $86.982 million, an increase from $73.330 million in 2022[112]. - The company reported a net other income of $0.2 million in 2023, recovering some losses from previous film investments[119]. - The company reported a total comprehensive income of $24.682 million for 2023, compared to a comprehensive loss of $8.712 million in 2022[124]. - The company recorded a profit of $27.5 million for fiscal year 2023, up from $10.8 million in fiscal year 2022[170]. Profitability and Margins - Adjusted profit for IMAX China was $29.8 million in 2023, compared to $12.4 million in 2022[29]. - The gross profit for technology products and services was $33.212 million, with a gross margin of 54.5% in 2023, up from 47.3% in 2022[115]. - The adjusted profit margin improved significantly to 34.3% in 2023 from 16.9% in 2022, indicating enhanced profitability[198]. Expansion and Network Development - IMAX China installed 22 new IMAX laser systems in collaboration with Hengdian Film and Television, aiming to increase the number of IMAX theaters in Greater China to over 1,000[7]. - The number of IMAX cinema systems in Greater China reached 1,013, surpassing the milestone of 1,000 cinemas, with 206 systems under contract[18]. - The company signed contracts for 28 new cinemas in 2023, including the largest system agreement in four years with 22 new laser systems[18]. - The company aims to continue expanding its network and enhancing partnerships with local filmmakers to strengthen its market position in 2024[9][10]. Revenue Sources and Business Model - The majority of the company's revenue is derived from mainland China, which is expected to be the primary source of future growth[60]. - The company has revised its reporting segments to include content solutions and technology products and services, reflecting a strategic shift in its business model[61]. - Revenue from content solutions for the fiscal year 2023 was $25.522 million, accounting for 29.4% of total revenue, up from $14.908 million (20.3%) in 2022[112]. - Revenue from technology products and services reached $60.898 million in 2023, representing 70.0% of total revenue, compared to $58.285 million (79.5%) in 2022[112]. Cash Flow and Financial Health - The net cash generated from operating activities for the fiscal year 2023 was approximately $12.5 million, a significant increase from $1.2 million in 2022, reflecting a growth of over 950%[181][193]. - The company anticipates continued growth in operating cash flow as the IMAX cinema network recovers and expands post-pandemic[193]. - The company's capital debt ratio decreased from 40.0% in 2022 to 25.1% in 2023, primarily due to an increase in equity of $21.3 million and a reduction in borrowings by $12.9 million[198][200]. Challenges and Market Conditions - Future revenue and cash flow may continue to be adversely affected by the pandemic and its impact on consumer behavior[79]. - The company has delayed several IMAX system installations due to ongoing uncertainties in the market[77]. - Approximately 29% of the uncompleted theater contracts are under sales and rental arrangements, 27% under full revenue-sharing arrangements, and 44% under mixed revenue-sharing arrangements[91].
IMAX CHINA(01970) - 2023 - 年度财报