Hong Kong-listed IMAX China (IMAX CHINA, 01970) disclosed that its 71.57% parent, NYSE-listed IMAX Corporation, reported unaudited results for the three months ended 31 March 2026. Selected data and operating trends relevant to IMAX China are as follows:
Financial Highlights (IMAX Corporation, U.S. GAAP) • Q1 2026 revenue: USD 81.38 million, down 6% YoY (Q1 2025: USD 86.67 million). • Gross profit: USD 45.81 million, a 14% YoY decline (Q1 2025: USD 53.18 million); gross margin slipped to 56% (Q1 2025: 61%). • Net income: USD 6.07 million (Q1 2025: USD 8.15 million). • Net income attributable to common shareholders: USD 4.23 million, equivalent to diluted EPS of USD 0.07 (Q1 2025: USD 0.04). • Adjusted net income attributable to common shareholders (non-GAAP): USD 9.57 million, up 33% YoY. • Cash and cash equivalents: USD 146.00 million (31 December 2025: USD 151.17 million); undrawn credit capacity of USD 326.00 million.
Segment Performance 1. Content Solutions – Revenue: USD 31.37 million, down 8% YoY. – Gross margin: USD 18.32 million (margin 58%; Q1 2025: 69%), reflecting lower Greater China box-office contribution and higher marketing spend.
2. Technology Products & Services – Revenue: USD 48.34 million, down 4% YoY. – Gross margin: USD 26.88 million (margin 56%). – Eight system installations recognised (six new, two upgrades), compared with 13 a year earlier. – Rental revenue decreased to USD 16.62 million, tracking softer joint-revenue-sharing box office in Greater China.
Network & Backlog • Operating IMAX systems reached 1,865 across 91 countries (up from 1,810 a year ago). • Commercial multiplex sites totalled 1,798; 76% are located outside the U.S. and Canada. • System backlog stood at 435 (301 new builds and 134 upgrades) versus 516 a year earlier; 73% are slated for international markets.
Box Office Metrics • Global IMAX box office: USD 259.60 million, down 13% YoY. • Local-language titles generated USD 62 million, accounting for 24% of global box office. • Key Hollywood releases included “Avatar: Fire and Ash” (USD 77 million) and “Project Hail Mary” (USD 66 million). • Domestic market share (trailing 12 months): 5.4%; global market share: 3.8%.
Cost Management • Selling, general & administrative expenses fell 3% YoY to USD 32.49 million; excluding share-based compensation, SG&A declined 8% to USD 26.58 million. • Credit-loss provision recorded a net reversal of USD 0.46 million amid improved collections.
Capital Structure & Liquidity • Revolving credit facility borrowings: USD 46.70 million net; USD 326.00 million undrawn. • Additional undrawn PRC facilities: Bank of China USD 27.50 million; HSBC China USD 28.90 million. • Convertible notes outstanding: USD 244.13 million.
Strategic & Operational Updates • First-quarter releases comprised 31 new films and events (seven Hollywood titles, 17 local-language films, seven special events). • Upcoming 2026 slate lists 34 additional releases, including multiple Filmed-For-IMAX titles such as “Mortal Kombat II,” “Supergirl,” and “Dune: Part Three.” • Management reiterated focus on international expansion; international systems represent 73% of backlog.
Risk Considerations IMAX highlights ongoing exposure to foreign-exchange volatility, geopolitical tensions (notably in Greater China, Russia/Ukraine, and the Middle East), and global macro uncertainty, all of which could impact box office, installations, and collections.
Regulatory Note Figures are prepared under U.S. GAAP and are not directly comparable with IMAX China’s IFRS-based reporting. The announcement serves to provide equal access to material information for Hong Kong investors.