Performance highlights in Greater China
Ÿ In 2019, IMAX China won a record box office of 365.8 million US dollars, an increase of 8.7% over the same period last year. Calculated in RMB, the box office in the mainland China market grew by 14%.
Ÿ In 2019, the company's revenue reached a record US$124.3 million, an increase of 5.8% from last year, mainly due to box office growth outperforming industry growth and US$44.6 million in adjusted profits.
Ÿ As of December 31, 2019, the IMAX China theater network has reached 717, and there are 253 theaters to be built under contract, including 40 theater agreements with CGV to focus on IMAX laser projection systems.
Ÿ announced that, as recommended by the board of directors, the company will pay a dividend of US$0.02 per share in fiscal year 2019, totaling approximately US$7 million. The dividend payout ratio is 33%, the same as last year.
Shanghai – February 20, 2020 – IMAX China Holding, Inc ("IMAX China" or "Company", Hong Kong Stock Exchange: 1970) announced today that the total revenue of the Greater China region for 2019 was US$124.3 million, compared with the same period last year The increase of 5.8% was mainly due to the 11.0% growth achieved by the theater network business, supported by record-breaking box office results. The gross profit for the full year of 2019 was US$76.6 million, equivalent to 61.7% of total revenue, and the adjusted profit for the full year of 2019 reached US$44.6 million, an increase of 0.6% over the previous year. Regarding the various adjustments to profit this fiscal year and our complete financial performance, please refer to our performance announcement submitted to the Hong Kong Stock Exchange or the investor relations section of the IMAX China website (http://www.imax.cn/investor) Announcement in the performance.
Richard L. Gelfond, Chairman of IMAX China, said: “In 2019, IMAX China set new records in multiple indicators such as box office, market share, total revenue and profit. The company’s strong execution and continuous optimization of local film selection strategies. As the box office increasingly concentrates on top-selling movies and Chinese local movies are producing more “IMAX-type” movies, these trends provide us with a favorable market share. Background. Through dividends and stock repurchases, we returned a total of US$33 million in capital to investors in 2019, further fulfilling our commitment to creating long-term value for investors.” In addition, Mr. Ge Erfang also said: "The recent outbreak of novel coronavirus pneumonia has brought challenges to the beginning of 2020. The safety of audiences and employees is our top priority. IMAX China and IMAX Corporation are very supportive of the decision to postpone the release of Chinese New Year films and to suspend cinemas. In order to contain the further outbreak of the epidemic. Our hearts are with Wuhan and the entire Chinese people, and we sincerely hope that the epidemic will end as soon as possible. Although we need to face some difficulties in the short term, we firmly believe that this unfortunate emergency will not be right. The long-term strength of IMAX China’s business has an impact. This judgment is mainly based on our market’s affirmed film supply and Chinese audiences’ strong basic demand for high-quality films and social entertainment experience. We still maintain the potential for long-term growth in the Chinese market Optimistic and firm attitude.”
IMAX China dividends
IMAX China announced today that its board of directors recommended a final dividend of approximately US$7 million (US$0.02 per share) based on the number of shares issued as of December 31, 2019. The dividend payout ratio is 33%. The dividend distribution plan will need to be voted on by shareholders at the company's annual meeting.
theater network progress
As of December 31, 2019, the IMAX theater network has reached the milestone of 717 systems in Greater China. In 2019, the company signed a total of 64 cinema systems60 sets. As of December 31, 2019, the number of IMAX theaters that have been signed for construction is 253, including 40 IMAX theaters signed with CGV. This is also the signing of the agreement with CGV in the Chinese market since the establishment of the cooperation with CGV in 2010 The fifth and largest agreement, the newly signed IMAX theater will focus on the breakthrough IMAX Laser® projection system.
IMAX China installed and upgraded 95 theater systems throughout 2019, and the number of installations in 2018 was 101. As of December 31, 2019, of the 717 theater systems in the Greater China region, 357 theaters are in the full revenue sharing model, 106 theaters are in the mixed sharing model, and 254 theaters are in the sales model.
Box Office Update
Our optimized selection strategy, growing theater network, and more and more consumers regard IMAX as a must-have experience for watching blockbuster movies, which has contributed to IMAX China’s total box office growth of 8.7% in 2019 to 3.658 One hundred million U.S. dollars. With an overall industry box office growth rate of 5%, IMAX China’s box office growth in the Chinese mainland market compared to last year was 14% in RMB. Of the top ten films at the box office of 2019, nine have IMAX versions. Mr. Chen Yuanpeng, CEO of
IMAX China, said: “With the development of China’s local film IP series and with its ever-increasing production standards, we will inject more IMAX genes into the IMAX film list, including the whole process of shooting with IMAX cameras. "Detective Chinatown 3". We believe that the demand for these highly anticipated films during the Spring Festival will be strong, and we expect them to be released one by one later this year to optimize the potential of ticket real estate."
It is forward-looking that
will continue to work closely with industry partners to prepare for the reopening of theaters after the epidemic subsides. Given that the epidemic is still changing, we are currently unable to make a forward-looking assessment of 2020. We will provide more forward-looking instructions on the system installation plan when the situation becomes more stable.
Key performance data for Greater China
12 months as of December 31st
2019 2018
Number of contracts signed in Greater China
Sales 20 30
Revenue share 43 30
IMAX laser upgrade 1 0 zzzz0
z0 Total 64 Number of theaters installed in districtSales 27 27
Revenue share 56 70
IMAX laser upgrade 12 4
Total 95 101
Theater network in Greater China
Commercial multi-hall theaters 702 624
z0 717 z 0 717
315 z3 15 z3 Number of theaters to be built in China 253 272
IMAX Greater China box office is 366 million U.S. dollars
Number of movies
Number of films
Mainland China 44 45
Hong Kong/Taiwan only 7
3zz4 51 572020 movie list
As of now, IMAX Corporation, the controlling shareholder of IMAX China, has announced that the following 22 movies will be released in 2020. Although the following films may not all be released in China, IMAX China will obtain the corresponding source once their release dates in China are confirmed. After the release date in China is set, the company plans to announce and show more movies. Unless otherwise stated, the following dates are all release dates in the United States.
Ÿ "1917": IMAX movie experience (Universal Pictures-North America, eOne International-International Market, January 2020), IMAX full frame
"Jedi Men: Chase Fast": IMAX movie experience (Sony Pictures, January 2020)
Ÿ "Dolit's Fantasy Adventure": IMAX movie experience (Universal Pictures, January 2020)
"Harley Quinn: Birds of Prey": IMAX movie experience (Warner Bros. Pictures, February 2020)
Ÿ "The Invisible Man": IMAX movie experience (Universal Pictures, February 2020)
"Bloodman": IMAX movie experience ( Sony Pictures, February 2020/North America March 2020)
Ÿ "The Magic of 1/2": IMAX Movie Experience (Disney Pictures, March 2020)
"I Still Believe": IMAX Movie viewing experience (Liongate Pictures, March 2020)
Ÿ "A Quiet Place 2": IMAX Movie Experience (Paramount Pictures, March 2020)
"Mulan": IMAX View Movie experience (Disney Pictures, March 2020)
Ÿ "The Story of the Beast Boy": IMAX movie experience (Apple, April 2020, some global markets)
"007: No Time to Die": IMAX movie viewing experience (United Artists Releasing-North America, Universal Pictures-International, April 2020), IMAX camera shooting
Ÿ "Black Widow": IMAX movie viewing experience (Disney Pictures, May 2020)
Ÿ "Fast and Furious 9": IMAX viewing experience (Universal Pictures, May 2020)
Ÿ "Wonder Woman 2": IMAX viewing experience (Warner Bros. Pictures, June 2020), IMAX camera Shooting
Ÿ "Rising Clouds 2: The Lone Ranger": IMAX movie experience (Paramount Pictures, June 2020), IMAX camera shooting
"Creed": IMAX movie experience (Warner Bros. Pictures, July 2020), IMAX camera shooting
Ÿ "Godzilla vs. King Kong": IMAX movie experience (Warner Bros. Pictures, November 2020)
Ÿ "Detective Chinatown 3": IMAX movie viewing experience (Wanda Pictures, 2020 to be determined, China), IMAX camera shooting
Ÿ "Emergency Rescue": IMAX movie viewing experience (Maoyan Films, 2020 to be determined, China)
Ÿ "Pioneer": IMAX movie viewing experience (Tencent Pictures, 2020 to be determined, China)
Ÿ "Winning Championship": IMAX movie viewing experience (Lianrui Pictures, 2020Year to be determined, China)
conference call
IMAXChina will hold a conference call today at 8:00 am Hong Kong time to discuss the fiscal year 2019 results. To dial into the conference call, participants from the United States and Canada should dial (866) 548-4713 5-10 minutes before the start of the conference. For participants from Hong Kong, please dial 800-961-105, and for participants from other regions, please dial (647) 484-0477. The conference call number is 2800682. You can also listen to the replay of the conference through the network playback function in the website www.imax.cn/investor/l-en or dial (888) 203-1112 (U.S. and Canada) or (647) 436-0148 (other international regions). The conference call replay number is 2800682.
