IMAX Corporation (NYSE: IMAX), IMAX China Holding Inc. (HKSE: 1970) and Guangzhou JinYi Media Corporation (JinYi, SZSE: 002905), one of the largest exhibitors in China, announced an agreement for 30 new IMAX® theatres to be located in a combination of new and existing complexes across the country.
The agreement underscores IMAX’s more flexible approach to deal structures in China, designed to help optimize financial performance on a market-by-market basis. The 30-theatre agreement will encompass a variety of different deal structures across Tier One to Tier Four cities based in part on the specific market and anticipated box office performance of the theatre. The theatres are expected to open beginning this year through 2023 with approximately half to be installed by 2019. The agreement brings to 885, IMAX’s total number of contracted theatres in Greater China with 543 open and 342 contracted to open.
“We are pleased to announce a second major IMAX commitment from JinYi in just two years – a testament to their continued confidence in IMAX to anchor their newest flagship locations and offer a premium differentiated experience that drives incremental revenue,” said Richard L. Gelfond, CEO, IMAX. “This agreement reflects a more flexible deal structure approach in China that IMAX will examine on a market-by-market basis, particularly as it relates to expanding our presence in smaller cities. We believe this new approach will help us maximize the box office potential for each new theatre added to our network.”
The parties first signed an agreement in 2009 for four IMAX theatres. In 2016, Jinyi became the second full joint venture IMAX partner in China with the signing of a 40-theatre IMAX revenue share agreement. Today’s agreement brings JinYi’s total IMAX commitment to 90 theatres with 32 theatres open and 58 contracted to open and positions the company as the third-largest IMAX partner in China.
“As a leading film exhibitor in China, JinYi is dedicated to offering best-in-class technology to constantly improve the moviegoing experience for its customers. Over the past two years, we have been strengthening our partnership with IMAX, whose leading brand coupled with its powerfully immersive format is beloved by moviegoers in China,” said Mr. Xiaodong Li, CEO of Guangzhou JinYi Media Corporation. “Through today’s agreement, we look forward to bringing cutting-edge cinematic experiences to more audiences across China and believe that IMAX will continue to be a key differentiator that will not only strengthen our brand, but also drive business results.”
About Guangzhou JinYi Media Corporation
Established in 2004, Guangzhou JinYi Media Corporation (‘JinYi’), is one of the most famous enterprises dedicated to cinema distribution and film exhibition in China. The company’s main products include film screenings, film distribution, merchandising and advertising services. Its subsidiary JinYi Cinema is one of the top cinema franchises in China. Today, JinYi manages at least 2,000 screens across 350 subsidiary and affiliated cinemas in 21 provinces and four municipalities. The box office performance of JinYi has been at the forefront of all cinema chains. Meanwhile, JinYi is well recognized within the industry by receiving various awards and honors. In February 2016, JinYi’s Guangzhou Haizhu IMAX Theatre formally opened, and won a series of awards for its “Meteor Shower” design concept, including the 2016 Germany Iconic Award - Interior Design Category and the 2016 Germany Red Dot Design Award - Architecture and Interior Design Category. In May 2016, JinYi was awarded the title of “Famous Brand of Guangzhou.” In August 2016, JinYi was named as “Guangzhou 100 Innovation Company.” In November 2016, the JinYi Cinema Sky Club was launched as the first art cinema in Guangdong Province. In December of the same year, the Committee of Guangzhou International Documentary Film Festival, China, awarded JinYi one of “10 China Documentary Drivers.”
The large membership base is an important asset of JinYi, and cinemas are complexes where the members conduct their consumption behavior. JinYi will constantly upgrade products and innovative experiences based on customers’ needs, and build a diversified, entertaining and service-oriented film and life service platform for audiences. On October 16, 2017, JinYi went public on Shenzhen Stock Exchange (SZSE: 002905), making it one of the few listed film exhibitors in China.