Benzinga | Jul 18, 2021 07:13PM EDT

IMAX China Holding Expects to Report H1 Profit

This announcement is made by IMAX China Holding, Inc. (the "Company" and, together with its subsidiaries, the "Group") pursuant to the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571) and Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.The board of directors (the "Board") of the Company wishes to inform the shareholders of the Company and potential investors that based on its preliminary assessment of the Group's currently available unaudited consolidated management accounts for the six months ended 30 June 2021 (the "Interim Period"), the net profit attributable to owners of the Company to be recorded by the Group for the Interim Period is expected to be approximately US$19 million to US$20 million, compared to a net loss attributable to owners of approximately US$35 million for the corresponding period of 2020. Such increase in the net profit attributable to owners of the Company is primarily due to:(i) a recovery in box office revenue to approximately US$133 million and maintenance revenuedue to the reopening of IMAX theaters in Chinese mainland since July 2020;(ii) an increase in theater system installations during the first half of 2021 compared to thecorresponding period of 2020; and(iii) a reversal of certain provisions of approximately US$2 million to US$3 million related to tradeand financing receivables primarily due to subsequent cash collections.The Company is still in the process of finalising the Group's interim results for the Interim Period.The expected net profit attributable to owners of the Company referred to in this announcement hasnot been audited or reviewed by the Company's auditor, and is only a preliminary assessment by theBoard with reference to currently available information. Detailed financial results of the Group forthe Interim Period will be disclosed in the interim results announcement of the Company, which isexpected to be published by the end of July 2021.2Shareholders and potential investors of the Company are advised to exercise caution whendealing in the shares of the Company.By Order of the BoardIMAX China Holding, Inc.Yifan (Yvonne) HeJoint Company SecretaryHong Kong, 19 July 2021As at the date of this announcement, the directors of the Company are:Executive Directors:Edwin TanJim AthanasopoulosMei-Hui Chou (Jessie)Non-Executive Directors:Richard GelfondMegan ColliganJiande ChenIndependent Non-Executive Directors:John DavisonYue-Sai KanDawn TaubinPeter Loehr