WANDA FILM(SZ:002739)2022-12-06 09:44Group 1: Market Trends and Performance - The growth rate of China's film market has slowed down this year, with actual net growth around 35% after excluding ticket subsidies, which began to decrease on April 1, 2016 [3] - Despite a decline in average ticket prices, Wanda's audience numbers increased by 17.6% year-on-year from January to September 2016 [3] - The Chinese film market has significant room for growth, with a potential of nearly 100,000 screens based on urban population statistics [4] Group 2: Technological Advancements - Advances in film projection technology, such as Dolby Cinema, provide a superior viewing experience, with contrast ratios significantly higher than traditional screens [4] - The introduction of Dolby Cinema allows 70% of existing Wanda theaters to showcase new films, enhancing the overall viewing experience [4] Group 3: Business Strategy and Expansion - Wanda aims to achieve over 20% market share by 2020, with plans to open over 80 new theaters in 2016, including 50 in Wanda Plaza and 30 in non-Wanda locations [6] - The company is exploring franchise models, starting with CGV cinemas, to enhance collaboration and market presence [7] - The average cultivation period for new theaters is around 10 months, with investment recovery typically within 5 years [8] Group 4: Rental and Financial Stability - Wanda's cinema rental is based on a market-driven principle, calculated at 11% of net box office revenue, ensuring stable future operations [5] - The company has signed long-term leases (10-15 years) since 2005, which are now expiring, posing potential stability risks for many operators [6]