IMAX China Holding, Inc. Provides Earnings Guidance for the Six Months Ended 30 June 2020
July 21, 2020 at 09:17 am
Share
The board of directors of the IMAX China Holding, Inc. announced that based on its preliminary assessment of the Group's currently available unaudited consolidated management accounts for the six months ended 30 June 2020, the net loss attributable to owners of the Company to be recorded by the Group for the six months ended 30 June 2020 is expected to be approximately USD 34 million to USD 36 million, compared to a net profit attributable to owners of approximately USD 24 million for the corresponding period of 2019. Such decrease is primarily due to: a significant decrease of box office and maintenance revenue as a result of the closure of all of the approximately 700 IMAX theaters in Chinese mainland in the first half of 2020 (since around 24 January 2020) due to the outbreak of COVID-19 in Chinese mainland; USD 18 million non-recurring, non-cash deferred income tax charge for withholding tax due to a change in management's permanent reinvestment assertions to allow for more flexibility in allocation of capital, including enabling the Company to pay dividends; a decrease in theater system installations and related margin during the outbreak of COVID-19 in Chinese mainland in the first half of 2020; and provisions of approximately USD 9 million made for trade and financing receivables.
IMAX China Holding, Inc. is an investment holding company principally engaged in the design and sale of image maximum (IMAX) theater systems. Along with subsidiaries, the Company operates its business through three segments. The Theatre Business segment is involved in the sale of theater systems, as well as the provision of installation and maintenance services. In addition, it is also involved in the aftermarket sales of three dimensions (3D) glasses, screen sheets, sounds, parts and other items. The Network Business segment is involved in the design, procurement and provision of digital theater systems, as well as the provision of related project management, ongoing maintenance services and aftermarket sales. The New Business and Other segment is involved in any other non-core business initiatives that are in development and/or start-up phase.