IMAX China turned a profit in 2016, with 424 IMAX screens in Greater China

The annual report shows that as of December 31, 2016, IMAXChina's total revenue was US$118 million, a year-on-year increase of 7.2%; gross profit was US$69.3 million, accounting for 58% of total revenue. Net profit was US$36.088 million, compared with a loss of US$181 million in the same period last year. Adjusted profit was $37.6 million, down 13% from the previous year.

Original title: IMAX China released its 2016 annual report, the number of IMAX screens in Greater China has reached 424

. On February 24, 2017, Beijing time, IMAX China released its 2016 annual financial report.

The annual report shows that as of December 31, 2016, IMAXChina's total revenue was US$118 million, a year-on-year increase of 7.2%; gross profit was US$69.3 million, accounting for 58% of total revenue. Net profit was US$36.088 million, and a loss of US$181 million for the same period in 2015. Adjusted profit was $37.6 million, down 13% from the previous year.

IMAX China said in its earnings report that the decline was due to weak box office performance and one-time pre-marketing and opening expenses incurred by the addition of 34 revenue-sharing theaters in 2016 compared with 2015.

IMAX China's box office revenue comes from fixed percentage fees charged to studio partners. The annual report shows that IMAX China released 46 films in Greater China in 2016, 37 of which were released in China. The total box office was US$296 million, a decrease of approximately 5% from 2015. But on a fixed-currency basis, IMAX China box office rose 0.5%.

Regarding the flat overall box office performance, IMAX China believes that "compared to 2015, the main challenge in 2016 is the weaker film." Due to the weakness of films and fluctuations in ticket prices for films in China, our average ticket price in 2016 dropped by approximately 5% compared to 2015. In addition, box office revenue was also affected by the depreciation of the RMB. However, these factors are temporary and there are no structural problems in the China film market."

In terms of theaters, the number of newly contracted theaters in IMAX China in 2016 was 238, exceeding the total of the previous two years. As of the end of 2016, the total number of theaters that had been contracted to be built reached 334, of which 275 were in the revenue sharing model. Throughout 2016, 117 new theater systems were installed in IMAX Greater China, a 56% increase from 2015.

Today, IMAX's commercial theater network in Greater China has reached 407 screens, and the number of screens in science and education venues can reach 424 screens. There are 394 blocks in mainland China, 4 blocks in Hong Kong, and 9 blocks in Taiwan.

These 424 screens cover 149 cities in Greater China, most of which are first-tier and second-tier cities. As of December 31, 2016, IMAX China has 67 theaters in first-tier cities in China, 192 theaters in second-tier cities, 72 theaters in third-tier cities, and 77 theaters in fourth-tier and below cities. Over the next year, IMAX China plans to use most of its cash to develop its IMAX theater network, including third-and fourth-tier cities.

At the same time, IMAX China continues to explore new opportunities in the VR field. At present, IMAX China and IMAX Corporation have jointly completed the initial fundraising of US$50 million in VR funds and introduced several strategic investors to participate in the capital injection. The VR Fund will support the production of at least 25 interactive VR experiences for all VR platforms, including the IMAX VR Experience Center.

IMAX has opened its first VR experience center in Los Angeles, and has reached an agreement with Guangzhou Jinyi Film and Television to open China's first pilot IMAX VR experience center in Shanghai Longzhimeng Jinyi Studios, which is expected to open to the public in a few months.

Editor: Nancy