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Company Report IMAX China Holdings IMAX中国 (01970 HK) GTJA Research 国泰君安研究

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2 of of 19

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

around USD0.20mn-0.30mn technology fees to IMAX Corporation tohas pay around USD0.15mn -0.20mn technologyfees to Furt Stable revenue from IM around 40. process were released in 2014, compared as to 6 in 2007. around 40, as there are only 52weeks ayear. time IMAX of China to reduce has clash from Hollywood films and 12.5% of China B films into IMAX format, by using IMAX DMR technology. 35mm film (1K~2K definition) into IMAX format (4K~6K definition) cooperation with Hollywood studios turn business by CMC Capital Partners (CMC), aninves Beijing and a total of 62 employees. On April 8, 2014, formed IMAX to China facilita zones in China. with large IMAX screen, s Se and with the strengthening of the Company’s relationships with major Hollywood studios has increased significantly in recent years with the advent of digital technology that has reduced t cameras to shoot films. The number of films released onan annual basis that have been converted through the DMR process of image and sound quality. technology digitally converts live-action digital films or 35mm to its large-format, while meeting the Company’s IMAX Model Business International. Junan Guotai Company, the Source: Table Partners. IMAX Company Profile IMAX IMAX owned and controlled by CMCand Fountain 31 to this transaction, AMC and Wanda were, respectively, IMAX Corporation’s first and third largest customers. In 201 compared to Film Business e Time 2010 2010 2009 2016 2016 2007 2015 2001 1998

films were converted through the IMAX DMR process and released to ing Hollywood and hermore, IMAX China has to pay technology fees to IMAX Corporation this in business. For Hollywood films, IMAX China th e

- China has 2 kinds of business models: film Corporation Digital las 1 : IMAX China's Milestone First domestic IMAXfilm Brothers Huayi with IMAX established IMAX China First sensational IMAX movie: More orders from Wanda Established afilm fund with CMC First deal with Wanda Listed in Kong Hong First IMAX in Shan screen ghai First IMAX office business Event t

The IMAX China Investment provides for the sale andissuance of 20% of the shares of IMAX China to entities pag

In 2015, IMAX converted 31 films and in 2016 IMAX expected to convert around 35~40 films.

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design O from Chinese films. Moreover, the maximum number of IMAX films Vest. Avatar technology (the Company)(the ’

created IMAX cinema to order IMAX forfirst time. the By the 2014, endof had Wanda films.

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a list sensational effect in China. ing Usually, excellent IMAX China could get revenue from film makers in converting their business and theatre business. First, IMAX China

in Kong Hong andfinanced USD71mn IMAX Corporation

has has However, the maximum of IMAX DMR in a year films might reach IMAX Corporation. For domestic films, IMAX China has to pay ‘ Tangshan Earthquake initi ’

, IMAX China could get around 9.5% of China B ‘ with twowith strategic partners. Rise ofRise the Sea Dragon digitalaudio system

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Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

multiplex operators and allows operators to r commercial multiplex operators, the introduction of the IMAXital dig projection system paved the way for a number of sacrificing the image and sound quality of the IMAX digital system was IMAX Digital Projection System definition 400~ IMAX IMAX system (25M Se itself for office box the of portion a retain will studio 2) The e films of respect in studios from received amounts all pays Corporation IMAX studios, the and Corporation IMAX between only are which contracts, studio existing 1) For Notes: Source: Figure for office box the of portion a retain will studio 2) The from case the be also will This China. IMAX to directly China Greater in exhibited films am all pays Corporation IMAX studios, the and Corporation IMAX between only are which contracts, studio existing 1) For Notes: Source: Figure 3) Fees under revenue sharing arrangements or ongoing royalties under sales arrangements. arrangements. sales under royalties or ongoing arrangements sharing revenue 3)under Fees d sound effects, which could make audience more audience make could which pictures effects, and surround sound larger than usual 35mn film cinema (8M were film 3) Fees under revenue sharing arrangements or ongoing royalties under sales arrangements. arrangements. sales under royalties or ongoing arrangements sharing revenue 3)under Fees Theatre Business e th xhibited in Greater China directly to IMAX China. This will also be the case for case the be also will This China. IMAX to directly China Greater in xhibited 1 e , the Company the Company the A - - 000 seats, far more than conventional las nalog 2 1

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Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

operation. system signings have been for digital systems. By 6M16, announcing that the Companywas developing digital projection technology, the vast Se Source: Figure Source: Figure Source: Figure important joint revenue sharing arrangements, which has e th e

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Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

H Laser IMAXupgrades. immediately, which might lead to alow gross margin thein current year but almost 100% gross margin thein next 12years. 12 years. Moreover, under China, customers have Obvio revenue of USD2.3mn Table IMAX China announced has to develop cheap with ASP of USD1.5mn for each set of system, with COGS of around USD1.2mn, adingle to very low gross margin. Moreover, R per screen IMAX China next in 12years. And IMAX China has to recognize USD37,500 as COGS for each customer annually. IMAX BO arrangement. Se Source: contract Combined contract sharing Revenue contract Sales Total type revenue by breakdown Network A Revenue Type of Theatre Business • • • • Bond f brighter, sharper picture, th London, IMAX unveiled Europe's first "IMAXwith laser" digital projection system. As the name implies, the main difference is IMAX officially launched IMAX Digital: Laser Theatre operated at its standards. Andmn. the cinema has to pay annual maintenance fees of to install IMAX theatre IMAX install to by approximately 363% since the beginning of 2008. Joint revenue sharing arrangements allow commercial theatre arrangements has been an important factor in the expansion of the Company’s IMAX power andlast longer than existing digital technology, capable of illuminating the largest screen in the IMAX theatre projectors present greater brightness and clarity, higher contrast, awider color gamut and deeper blacks, andconsume less laser customers on sales basis.

rrangement evenue ybrid revenue sharing arrangement at laser e

n th etwork etwork remixed 12-channel surround sound. Square, the new system sounded very good—treated to an incredibly visceral launch of the Space Shuttle system, adding two additional side speakers and four ceiling speakers into the mix. At the Empire cinema in Leceister In addit 2500:1 contrast ratio of IMAX's xenon- lamp overcoming some of the dimming caused by the 3D glasses. pictures. IMAX laser 3D digitalthat cinemas adhereto). New 12 channel L Excellent contrast ratio. The contrast ratio is "double" that of IMAX film 15/70mm projection and "higher" than the brighterMuch screen. - e based digital projection system, which it began rolling out at the end of 2014. The Company believe the s IMAX laser - usly, the revenue sharing a arger colour space Laser the Compa ilm las 2 : IMAX China's Network Estimates

-based IMAX uses a laser light source rather than a stupendously powerful (15kW) xenon arc lamp. This results in a

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2013

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Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

first and foremostdriver behind reached where they It might take a longer time take might It time heavily screen atte data from 50 national average1.7 of RMB it's very difficult for BO 2Q16in and 3Q16 to surpass the level of BO in 1Q16. In 2016, we expect China BO might reach quality domestic films, Se 2 1 Rank Table different provinces. Geographic expansion Source: Avg. film ticket pric screen per Attendance cinema per Screen Attendance Screen per BO Screen Cinema BO film foreign Imported Domestic film BO Total Table China Industry Cinema China a slightly higher than Centralin China and Western China. However, s Note: BO per Screen is calculated by the average number of screens in screens of number average the by calculated is Screen per BO Note: Beijing and Shanghai reached 3.9 were installed. the peak level of RMB1.69 mn

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were 51.3% yoy that Moreover,the cinema ential ential 33 33 Unit capita per Screen

51,106 51,106 46,532 2018E 20.0% 55.0% 20.0% 20.0% 18.8% are moving to cities,

8,815 8,815 2,322 2,322 1.0% 4.0% 5.0% 5.0% 4.9% 2.9% mn

reached 53and 47, 37.8 37.8 46.2 84.0 36.1 36.1 1.85

5.3 5.3

China ly 3 amazing

cinema

Attendance per 48 Unit citizen urban mn per Screen 51

10,327 10,327

53,130 55,603

, or almost 1 2019E 18.0% 55.0% 18.0% 18.0% 16.8% 19.5% 17.2%

ely, ely, 2,713 2,713 1.0% 4.0% 5.0% 5.0%

44.6 44.6 54.5 99.1 36.5 36.5 1.94 Page Page include BO

5.4 5.4

showing

2.5 2.3 Times citizen urban per Attendance demand

growth 7

of of 55,234 55,234 56,259 10,244 el of of el high 2020E 13.9% 15.0% 55.0% 15.0% 15

- 3,089 3,089 113.9 1.0% 4.0% 5.0% 5.0% 1.2% 0.8% BO BO the 36.9 36.9 2.04 51.3 62.7 19 .0% 5.5 5.5 in in

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

Table strobe lights, and vibration. physical effects that occur in the Se ChinaStellar Film 30.7% of total cinemas of the top 5circuits sharewas actually have circuits M Source: BO IMAX 3D BO cinemas were built in China. China BO. thinkWe the proportional of IMAX BOwould increase due to fast growing I are a strong driver in IMAX China. in BO In 2015, IMAX BO China in has reached USD312mn, or RMB2.0bn, 4.5% of total price. RMB50~80 in China, higher than the average ticket price of RMB35. 3D BO reached RMB25.6bn, up 67. were almost 3D screens, more 3D BO come might from China consumption upgrade andblockbuster movies. 3D Source: 31 30 29 28 23 22 21 20 19 18 13 12 11 10 9 8 3 14 4 24 15 6 5 16 7 25 17 26 27 Film Stellar Circuits could regional circuits grew fast. However,we thisthink situation might change theas listed Wanda Circuits, Dadi Circuits and Ch ina the cinemas.

China Cinema Circuit Cinema China arket concentration

and th e -

2) IMAX2) Research Report on Chinese Film Industry Film Chinese on Report Research Industry Film Chinese on Report Research Average Xizang Qinghai Ningxia Xinjiang Shanxi Yunnan Tianjing Jilin Heilongjiang Guangxi Chongqing Anhui Fujian Henan Liaoning Shandong Zhejiang Hunan Beijing Inner Mongolia Shaanxi Sichuan Shanghai Hebei Hubei Guizhou Jiangxi Gansu Hainan las 5

IMAX BO will be a moderate driver. 1) 3D BO has been a key driver for akey driver been has BO 3D 1) driver. amoderate be BO will IMAX : China 3D Box Office and IMAX Box Office as % of total BO total of % as BO total of % as t

growth growth

pag

rights to determine what kinds of movie

1) 1) e attendance,

yoy yoy fo China Top circuits5 r

disclaimer Circuit 49 105 172 273 591 665 680 704 754 775 1,250 1,268 1,488 1,508 1,672 1,709 3,490

1,127 3,151 505 1,039 2,334 2,939 1,032 2,099 438 845 386 351 declining

bn RMB bn RMB bn BO BO

is % % % %

, Shanghai United Circuit,

expected to increase. Usually,China circuits 1 2 5 9 18 19 2 22 23 38 42 40 49 54 55 97 15 34 72 32 69 68 12 32 66 12 27 9 9

grew fast due to fast growing IMAX n 1 2 finance from financial markets and gr

.1%of cinemas and26.6 from thepeaklevel of 46.9% to

are located 4 had D film theatre synchronization in with the 2010 2.4

4 147 387 3 18 40 119 138 157 63 114 128 137 240 192 266 197 347 277 158 168 289 192 122 245 243 111 233 88 36 1% yoy, 58.0% of total BO. The average movie ticket price of 3D BO was around 3

is amarketing term for anentertainment presentation system combining a

4 ( ( 中国电影产业研究报告中国电影产业研究报告 % of total BO market in China in 2015 100.0% 36.5%

2011 in the tier the in 1,807 24 85 164 449 604 408 525 547 631 950 1,226 917 1,234 1,175 2,361 579 1,297 972 1,017 805 1,557 493 898 1,289 436 963 347 130 4.8

42.8% 52.1% 41,563 44,683 24,459 29,480 19,498 28,991 46,185 40,017 39,787 36,755 34,482 44,029 39,583 46,142 30,379 41,054 39,654 26,028 26,398 73,705 66,947 44,456 39,974 24,827 51,457 35,157 27,550 27,573 27,012 67,344 2.9% 201 s and Guangzhou Jinyi Zhujiang Circuit reached RMB 7.3 0.5 0.5

1 and tier -1 th 2

% of% screens e cinemas should release in certain period, but they don't directly own

) ) , , 60.4% 44.6% 32.9% SARFT, SARFT, SARFT, 3.7% 2013 9.7 0.8 0.8 2.04 1.23 1.05 0.61 1.10 1.67 1.34 1.38 1.23 1.03 1.62 1.22 1.42 0.95 1.46 1.32 1.48 1.02 0.87 3.24 2.89 1.29 1.50 1.02 1.15 1.63 1.00 0.88 1.11 2.70

-2 t

Guotai Junan International. International. Junan Guotai International. Junan Guotai

cities. etwork film , respectively , 41.7% 51.7% 57.7% current 43.4

3 6 7 23 47 15 28 38 47 38 23 94 44 97 30 55 36 67 21 24 38 81 25 73 58 35 45 26 9 3.8% 2014 15.3 15.3 much

1.1 1.1 . Effects simulated in a4D film may include rain, wind, Obviously, 3D BO was a key driver to average ticket

gave the rights to the cinemas to release films. China

However, the top 5cinema circuits only account for . Hollywood movies with sensational visual effects faster faster 76.1% 58.0% 67.1% 4.5% 2015 24% 50% 52% 46% 41% 79% 55% 58% 46% 62% 62% 44% 68% 52% 55% 60% 64 54 49% 88% 89% 53% 46% 60% 48% 56% 39% 50% 41% 52% 25.6 25.6 2.0 2.0 % %

%,tooas many smallcinemas medium in

. In

. than In past 5 years, the top 5 circuits

China BO. BO. China

16 18 26 12 14 46 26 20 16 42 34 65 16 38 18 63 33 16 17 149 122 28 29 20 14 36 12 19 15 39 201 2016E 68.3% 60.0% 36.6% 4.3 34.9 34.9

2015 through acquisitions .4 3) New 4D 4D MAX network New China. in 3) 5

, BO per screen of Wanda

67 36 50 26 35 58 46 34 36 54 105 37 56 34 71 99 60 30 34 170 136 53 62 34 29 65 32 37 36 75 2017E 42.6% 62.0% 29.2% 4.9 45.1 45.1 As the new screens in China

3.5

8 15 25 20 13 28 19 14 13 32 40 13 27 19 23 32 43 16 19 46 42 21 19 20 12 22 12 21 13 15 2018E 36.2% 64.0% 23.9%

55.8 55.8 2.8 .5% 4.6

mn, RMB mn,

33 30 48 43 32 35 34 25 29 52 65 30 40 35 41 54 67 30 39 53 47 41 42 33 26 40 32 43 33 28 In 2015,China

2019E

32.6% 66.0% 21.7%

5.8 3D film 3D 68.0 68.0 Page Page 5.8 % .

2) Most Most 2) 1.5 0.7 1.4 0.8 0.9 1.6 1.4 1.0 1.1 1.8 2.8 1.2 1.8 1.1 2.1 2.7 1.7 0.8 1.0 3.9 3.2 1.6 1 0.8 0.9 2.1 0.9 1.2 0.9 1.9 ’

.9 .9 Circuit 1.7 market 8

of of

2020E 27.2% 68.0% 18.5% with with mn, mn, 6. 80.5 80.5 19 1 6.9 % ,

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

Se Source: Circuit Zhujiang Jinyi Guangzhou Ci United Shanghai Dadi Cinema Circuit Circuit Theatres Stellar Film China Wanda BO proportion Screen Cinema Attendance Box Market 5 Circuits Top per BO Screen Cinema Attendance Box Nationwide per BO Seat Screen Cinema Attendance Film played Box Circuit Jinyi Zhujiang Guangzhou per BO Seat Screen Cinema Attendance Film played Box Circuit United Shanghai per BO Seat Screen Cinema Attendance Film played Box Circuit Cinema Dadi per BO Seat Screen Cinema Attendance Film played Box S Film China per BO Seat Screen Cinema Attendance Film played Box Wanda Circuit Cinema China Table 3 RMB

rd e ~5 o o o o o o o

ffice ffice ffice ffice ffice ffice ffice th

China China s s s s s s

1.9 China China th creen creen creen creen creen creen e -

Research Report on Chinese Film Industry Film Chinese on Report Research tier cities, its BO per screen per BO its cities, tier las 6

mn, andmn, RMB1. : China Cinema Circuit Cinema : China

tellar Circuit tellar Cinema Circuit

Cinema Circuit Cinema t

pag rcuit

S fo hares r

disclaimer

8 mn, mn,

mn times mn times mn times mn times mn times mn mn RMB mn RMB mn RMB mn RMB mn RMB mn RMB mn RMB mn RMB mn RMB mn RMB mn RMB

bn RMB bn

Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit Unit mn mn mn mn mn mn respectively, % % % % % % % % %

only reached RMB1.

28,0 10.5% 12.8% 13.5% 46.0% 4,723 4,723 1,687 7.1% 2.1% 2009 2009

13.5 13.5 24.2 27.9 ( 200 200 171 440 650 181 130 537 1 794 374 835 1.3 1.3 6.2 2.6 0. 0.7 0.5 0.2 1.5 0.8 2.2 0.6 中国电影产业研究报告 27 27 34 35 51 44 4 higher than national average of RMB1.

36,396 36,396 10.5% 13.8% 46.6% 11.9% 6,256 6,256 1,993 1,070 1,213 1,403 6.8% 3.7% 2010 2010 10.2 10.2 17.8 13.5 33.4 36.3 222 222 691 399 108 376 684 136 604 28 1.6 1.6 3.1 0.4 0.9 0.4 1.8 1.0 2.3 0.8 55 71 6

2 77,236 77,236 10.5% 13.6% 34.1% 23.3% 33.3% 45.6% mn, mn, 1,377 1,377 1,785 9,286 9,286 2,796 1,303 6.5% 9.9% 5.1% 2011 2011 23.5 23.5 38.4 40.9 13.2 13.2 23.4 37.8 214 214 677 887 165 703 370 370 460 850 934 192 888 ) 0.9 0.9 1.6 1.3 2.5 1.2 1.4 1.4 1.8 0.8 1.4 1.1 0.8 , 83 80 SARFT

up 20% yoy, lower than national

117,307 117,307 , 13,118 13,118 14.4% 30.0% 22.6% 33.6% 46.9% 1,105 1,105 1,059 1,620 2,456 3,442 3,442 1,180 1,650 1,319 the Companies, Guotai Junan International. International. Junan Guotai Companies, the 6.9% 9.7% 6.5% 9.5% 2012 2012 38.5 38.5 43.9 58.4 17.1 17.1 30.9 44.7 289 289 188 980 113 470 470 709 127 849 175 1.9 1.9 1.5 1.6 2.5 1.7 1.3 1.3 1.7 1.2 1.9 1.5 0.8

213,507 213,507 213,507 155,223 155,223 181,182 250,180 18,195 18,195 14.5% 28.1% 21.6% 32.8% 45.8% 1,590 1,590 1,333 1,838 1,247 3,161 4,583 4,583 1,541 1,006 1,840 1,796 7.1% 8.5% 7.3% 8.4% 2013 2013 52.4 52.4 52.2 77.8 21.8 21.8 41.2 50.9 381 381 229 142 600 600 970 171 210 2.8 2.8 1.4 1.8 2.5 2.1 1.2 1.2 1.6 1.6 1.8 1.9 0.9

4 mn. However,mn. Dadi as ci

244,000 244,000 251,000 207,602 207,602 214,000 313,000 23,600 23,600 14.2% 27.5% 24.1% 31.3% 45.0% 2,350 2,350 1,642 2,447 1,616 102.0 4,212 5,158 5,158 1,291 2,088 1,246 2,221 2,323 7.1% 7.5% 7.9% 8.3% 2014 2014 76.2 76.2 67.6 29.6 29.6 54.8 60.9 479 279 182 830 830 231 256 3.5 3.5 1.5 2.7 2.6 2.8 1.3 1.3 1.6 2.4 1.8 2.1 1.0

309,000 309,000 319,950 242,724 242,724 394,000 254,911 31,627 31,627 13.6% 26.6% 26.1% 30.7% 43.4% 3,472 3,472 2,189 106.5 3,760 2,133 146.5 6,012 6,358 6,358 1,256 1,588 2,849 1 3,031 3,003 112.9 6.5% 6.9% 7.9% 8.5% 2015

,622 ,622 44.1 44.1 82.8 83.0 596 596 462 240 306 306 295 average 5.2 5.2 1.7 3.7 2.8 4.2 1.4 1.4 1.8 3.2 1.9 2.7 1.2

Growth CAGR 5Y

of RMB1.4mn rcuits expanded in 40.7% 52.9% 67.7% 56.0% 26.2% 27.7% 26.1% 30.3% 25.4% 28.7% 27.6% 32.2% 41.0% 33.8% 36.5% 22.6% 30.9% 31.1% 46.2% 48.2% 41.0% 36.1% 49.1% 32.8% 23.1% 49.7%

Gr CAGR 3Y

Page Page .

9 of of 34.1% 22.7% 38.8% 37.2% 27.4% 30.8% 34.1% 38.9% 37.4% 34.1% 24.1% 19.0% 22.9% 22.2% 22.5% 31.6% 27.3% 43.1% 40.3% 46.5% 27.4% 34.9% 34.4% 34.0% 32.4% 29.6% 28.5% 3 35.8% 34.8% owth 5.9% 19

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

Currently, to IMAX China. and 4DX in the cinemas, excluding movable chair, wind, The water and other special effects. other customers in the zone have to buy other systems, such DMAX as and4DX. 4DX is one customer has installed IMAX equipment system could deliver 8K definition film. M Usually, the definition of DMAX only film reaches IMAX China IMAX film. 3) DMAX. 2) Theform. DMAX tic film Ch 1) watching experiences at cheap price. Compared to IMAX, DMAX with no copyright fees, Se 4) However, the new IMAX laser system also use DMAXtrack). is Dolby Lab in sound effects. IMAX xenon luminance D Source: Rank Table The m grew revenue, such as food & bever companies are the owners of cinemas. Only ( Dadi Cinema, Cinema Stellar companies: fastest Cinema, Dadi Cinema, and S Cinema Management Competition MAX

10 e Inferior Better sound effects than IMAX xenon Lighter screen 9 8 7 6 5 4 3 2 1

th e eap - the ChinaFilm Newspaper Top 5 market share Top5 market share Top market 10 Harvest Golden Cinema United China Investment Cinema UME Investment Cinema CGV Cinema Hengdian Cinema Stellar Investment Cinema Film China Cinema Jinyi Cinema Dadi Cinema China Wanda Cinema

las 7 arket concentration is growth

: Top 10Cinema Management Companies

the main

fastest in 2015. SMI equipment page Dolby

of 36,000LM, 20% higher than the IMAX definition

1) Top 5 cinema

leaves

in the

IMAX China ( r using the latest Dolby Lab system with 11.1 tracks sound (11 main sound tracks and1bass sound track). SMI) Vision has only several screens in China. disclaimer

than IMAX than

competitor

T plenty

op 10 cinema management companies. 3) Convenient financin to price

affordable by most cinemas in China. ket priceket

Co ( IMAX syst IMAX 中国电影报

s mpanies of room of

mn RMB mn Box Office has signed MI and ticket prices management companies of

Cinema BO (including BO businesstaxCinema xenon , which, could finance from financial markets, could grow fast

of 30.6% 41.6% 1,032 1,032 1,446 1,637 1,723 1,927 2,210 6,012 is c age revenue and ad revenue. 778 778 783 811 )

inema

Junan International. International. Junan Guotai , IMAX inChina.

only RMB10 higher than normal 2D or 3D movie ticket price. em. SMI Dolby

for

system yoy Growth Beside BO revenue,

), andChina Film Cinema Inv 100.1% 106.7% DMAX DMAX

oreover, the 29.9% 14.1% 43.6% 49.2% 18.2% 56.9% 44.0% other exclusive - %

0.9% systemusually provides management compan Vision.

in the zone, other cinema customers could not buy any IMAX system. As a result,

system s competitors . but darker than IMAX laser system. is mn times mn Att

the 11.1 sound tracks. A set D of 2K, while the definition of IMAX could film reach 4K~6K. The new IMAX laser

Dolby using theusing original 35mn film while IMAXs turn endance contact D xenon 29.3% 39.6% MAX moviegoers 146 146 in but similar to IMAX laser system. 22 18 19 27 44 47 51 52 71

Vision is a new type of high-end cinema systems,direct a competitor China,

customers who have already bought IMAX other could install DMAX

system. But IMAX Unit Cinema s MAX only reach around RMB1.0m~3.0m, only around 1/5 of IMAX, was developed by China Film Group d

14.4% 19.0% with customer . the

Film

a combineda market share of 30.6% in 2015, down 1.1pptyoy. 115 115 177 125 282 240 IMAXChina has defined 1,000 zones for customers in China. If 64 39 24 53 90

2015

cinema management companies

makers

has severalhas features: will ies

There are several features of the cinema management Unit Screen and 6.1 sound tracks (6 mai 19.3% 26.1% 1,099 1,099 1,405 2,133

estment grewfast see see

458 458 252 284 417 757 632 822 is film funds) reached RMB1,723mn, funds) film

onlypayless than RMB1.0mn for eachDMAX film in

expected less 3D effects in watching DMAX film, compared s forbid s Unit Seats 102,058 102,058 157,630 101,904 130,821 196,620 319,950

68,328 68,328 39,093 34,080 73,326 laser system

ding

% rate Attendance to increase. The cinema management

g channel is crucial.

DMAX using is the metal screen, with er them to cooperate with

than that of China BO office. can

a new type of cinema system with DMAX DMAX n soundtracksand 1 bass sound 16% 24% 25% 19% 21% 17% 26% 18% 18% 24% er

create far more

than the industry average .

and could deliver good the 35mn film

mn RMB mn screen per BO also is

usually haveto createnon BO

1.7 1.7 3.1 2.9 2.5 1.9 1.5 2.7 2.3 1.6 2.8 up 106.7% yoy, the

cooperating with We think We Wanda mn Times mn screen per Attendance luminance in Dobby

to 70mn film. Page Page

Vision. Vision. 10 2) 2) movie 47,817 47,817 71,323 66,261 65,546 58,441 42,89 80,338 62,997 50,869 68,669 than than of of SMI

to to 1

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

reach network expansion speed should We think the proportion of Chinese IMAX to screens total screens might stay at around 1.0% level, which means IMAX's growth depends IMAX network expansion and IMAX movies Se Theatre revenue Total China IMAX Table So BO IMAX estimates order New backlog Order Network China IMAX Pirates of the Caribbean Strong IMAX BO growth in 2017 International. Junan Guotai Company, the Source: contract Combined Revenu contract Sales Percentage contract Combined contract sharing Revenue contract Sales Total type revenue by breakdown Network 3 AnalysisFinancial 2015. therearelots of films big 2017: in Kong USD1 145.5USD mn, expect the market might recover 2017 in due to strong film pipeline we expect ratio this to increase to around 2016, Table 29.9%, respectively. upgrades), 65, 18, Revenue sharing contracts and combined contracts might account IMAX China's netw future the and payment estimates, Table 33.

Revenue Year CAGR of IMAX CAGR of China Year urce: the Company, Guotai Junan International. International. Junan Guotai Company, the urce: e 4

th %, and 22.2%, respectively. combined e sharing contract sharing e as % of total BO total of % as growth yoy growth yoy growth yoy growth yoy r e - - evenue We expect We its film revenue in 2016-2018 to reach USD36.9mn, USD51. 8

sales 420 las Film Theatre 10: IMAX China 9

: IMAX China

: IMAX China s

. In 201 b , page

. its theatreits revenue in 2016

usiness

523, and

More and more cinema customers have chose r contract, evenue

fo arrangement

r r evenue

6, sales disclaimer

respectively ork

mn, and USD and mn, 96.6

’ , up 3 up 621,

s revenue sharing ’ by revenueby types s

’ Network Breakdown s

Order Backlog 5, and perhaps Avatar 2. expectWe the Chinese film mar

contract Revenue Breakdown

might shift IMAX % % % Unit Unit Unit Unit

accounting for 26.1%, 56.5%, and 15.7% of total revenuegrowth expected reach to

6. M

mn USD mn USD mn 8

n USD , match Unit Unit Unit is % % % % % %, 2 %, revenue sharing % %

expected

-2018 244.2mn, up 31.6

contract, and combined contract will account for 38. . 4

with As a result, more and more revenue . 39.8% 57.8% SkullIsland, Fast andFurious7,Transformers 5, 6 2.3% 2012 27.6

%, and 128 128 was expected to 51 74 3

the total screen growth. expectWe IMAX network in China in 2016 to 2018 to China's revenue from current fiscal year to next by Revenue Type

2012 . % in 2.9% 20.0% 80.0% In 2015, film

122 122 128

2012 2012 37.3 37.3 46.6 81 56 43.4% 50.9% 5.8% 2013

173 173 18.

10 75 88 2018. contract

8 %, respectively.%,

%, %, Although Chinese BO growth might slow down to around 27%, we 185.7% 3 n

60.4% 94.3% 35.2%

, and combined 2013 BO reach USD108.6mn, USD144.9mn, and USD177. business revenue only accounted for 25.8% of total revenue and 3.7% 5.1 10.7% 43.6% 45.7%

24.1% 75.9% 129 129 1 237 173 revenue sharing arrangement as they don't have to pay i 2014 2013 2013 42.5 42.5 55.9 60 60 102 102 107 234 25 . %, and 24.2%, respectively.

IMAX revenue

in Ho in 30

. - We expectWe its total revenue reach in to 2016-2018 15.0% 42.7% 42.3% 23.8% 76.2 for 41.7% 73.1% 35.3% 2 2014 - 2015 2014 2014 3.9% 7.6% 59.6 59.6 78.2 % 131 131 130 307 llywood. 183 183 219 234 46 43 %

contract a

in 2015 will be

7mn higher percentage of its theatre revenue in

consists of completed , and USD67. According to the Hollywood film pipeline, ket mightket boom again in 2017

2016E 15.2% 46.7% 38.1% postponed to the future. According to our

25.8% 74.2% 70.6% 60.5% 31.2% 2018. -2018. 2015 are - 110.6 196 196 16 4 2015 2015 4.5% 1.8% 82.1 82.1 20 64 312 312 215 307 0 69

expected to reach 32 (2 IMAX laser

contract theatre revenue and film revenue.

Star Star

We think IMAXWe China's revenue 1

2017E 15.4% 48.8% 35.8% %, 46. 12 255 255 189 523 80 2016E 2016E W 25.4% 74.6% 1mn 18.3% 20.0% 86.0% 36.8% 108.6 108.6 145.5

3.9% fiscal years.fiscal By the end of

369 369 400 420 ars s. 83

7 , up 29.6%, 40. Higher

, Spiderman 4, Thor 3, %, and 15. 2018E 15.5% 50.2% 34.4%

312 312 215 621 96

2017

revenue sharing 40.1% 20.0% 24.6% 2017E 26.3% 73.7% - 144.9 144.9 196.6 4.4% 1.0% 0mn

517 517 396 523 99

E 2019E 15.5% 51.2% 33.3%

Page Page 4

, up 32.2%, 368 368 242 720 as as it did in 112 % of total

%, and 11

2018E nitial nitial 2018E 2020E 27.5% 72.5% 29.9% 10.0% 18.8% of of 15.6% 51.9% 32.5% 177.0 177.0 244.2 4.8% 2.8% 671 671 109 407 621 127 127 425 268 818 19

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

ppt yoy,while the film business growth margin reached gross margin will bedetermined For reached gross margin of 18.2%. Moreover, laser and revenue structure maintained if

Se International. Junan Company,Guotai the Source: Figure Gross profit expected to grow at International. Junan Guotai Company, the Source: Film

Gross Profit Gross e gross margin margin gross profit gross b

gross margin gross profit gross growth% th usiness mn USD combined contract, IMAXChina has to recognize revenue of USD0.55mn andCOGS of USD0.45mn at the first year, with e upgrade 100.0 120.0 140.0 160.0 180.0 200.0 growth yoy growth yoy growth 20.0 40.0 60.0 80.0 - las Maintenance arrangemen Sales Maintenance arrangements Sales Maintenance arrangements Sales Maintenance arrangements Sales Other arrangements sharing Revenue Other arrangements sharing Revenue Other arrangements sharing Revenue Theat Other arrangements sharing Revenue

9 - mn, 96.0USD mn,

r t ： evenue

page

re re

IMAX China r

evenue 2012

24.3 IMAX maintains business business

fo 32.5%

disclaimer ts 2013 32.2

44.1%

USD14 Gross profit Gross change. has the lowest gross margin of around 13%, with ASP of around USD1.5mn and COGS of USD1.2mn. ’ s 2014 46.5

Gross Profit Estimates

3 its current pricing policy. And gross margin might be improved due to larger .

2015 55.5% 3 The sales business has the highest gross margin over 60% 72.2 mn by by mn USD mn USD mn USD mn USD mn mn USD mn USD mn USD mn USD mn USD mn USD mn USD mn a % % % % % % % % % % % % , and USD1 and , its revenue its structure pparently,

growth yoy a

2016E 32.9% 96.0 3

Year Year CAGR of 49.2%

2017E 143.3 the the 40.2% 40.4% 48.5% 28.1% 64.3% 55.2% 8 3.8 16.3 16.3 20.6 25.3 2018E 3.7 3.7 9.3 0.1 2.1 2.1 0.4 4.3 7.3 28.3% 183.8 film business has higher gross margin than the

mn, up

10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0.0% . 36.

In 2015, the theatre 76.3%, up 13.6pp %, 32.9%, 5 120.2% 147.5% - 61.2% 44.6% 58.6% 57.9% 41.8% 65.8% 56.5% 39.1% 94.1% 15.6% 13.8% %

13.5 13.5 14.1 24.0 14.2 21.4 8.2 8.2 0.5 3.5 5.9 0.9 6.0

in Source: the Company, Guotai Junan International. Junan Company,Guotai the Source: Figure

2015 mn USD 49.

100.0 120.0 140.0 160.0 180.0 60.0 80.0 20.0 40.0 2 - - %, and 28. -2018.

63.9% 44.3% 38.1% 41.2% 55.0% 46.8% 68.1% 58.0% 10.5% 19.9% 60.8% 34.0% 40.4% 10 18.6 18.6 10.7 19.5 34.6 22.8 28.7 11.9 0.4 0.4 4.0 1.0 7.2 : 2012

23.1 t IMAX China

25.1% yoy. business gross margin reached 61.6%, up 3.6 We thinkWe IMAX China's gross margin

2013 3 28.9 In 2016 37.2% % yoy. yoy. % 76.3% 82.4% 52.9% 33.3% 57.3% 55.7% 69.0% 61.6% 20.5% 29.6% 51.6% 29.2% 37.7% 21.7 21.7 28.5 19.2 25.6 50.5 34.5 37.0 0.4 0.4 5.4 1.2 9.3 2014

EBITDA 39.7 ’

s -2018, our gross profit estimates

EBITDA in its theatre segment 32.3% 2015 52.6 76.4% 29.8% 29.6% 33.4% 57.4% 64.9% 62.1% 62.5% 55.6% 47.4% 13.4% 32.3% 0.0% 28.2 28.2 36.9 33.0 26.1 67.8 14.5 50.9 42.0 theatre 0.4 0.4 8.3 1.2 growth yoy

2016E Estimates 57.4% 82.7

economies of scale business.The total 48.1% 2017E 122.5 - 76.5% 40.3% 40.1% 33.5% 57.5% 77.6% 65.4% 71.6% 29.7% 75.5% 15.2% 33.4% 103.8 103.8 0.0% 39.5 39.5 51.7 10.9 69.3 23.3 18.9 89.2 35.6 0.4 0.4 1.2

Page Page 2018E 27.8% 156.6

, while ,

can 12 30.0% 40.0% 50.0% 60.0% 70.0% 10.0% 20.0% 0.0% 76.6% 30. 29.9% 33.6% 57.6% 81.2% 65.4% 74.8% 21.4% 33.4% 22.2% of of

- 132.4 132.4 119.0

0.0% 4.8% t 51.4 51.4 67.1 13.2 96.7 22.2 22.9 33.9 be be he he 0% 19 0.4 0.4 1.2

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

Se International. Junan Company,Guotai the Source: Figure Adjusted n International. Junan Company,Guotai the Source: Figure expect its operating profit to reach USD70.4mn However, operatingits margin was mainly determined by its gross margin due to the revenue structure. maintainat around 14.0%2016 in -2018. It's possible that IMAX China might have a bett gradually dueto economies of scale expense ratio only reached 13.3%, down 1.1ppt from 14.4% in 2014. reached USD23.9mn, 21.6% of total revenue, including IPO costs of USD9.2mn. If we exclude its IPO costs, its operating Operating profit expecte respectively. option better measure than net profit. In 2015, IMAXChina has recorded anon cash loss of 39.2% yoy. happen again thein future. turned these r 0.675mn r 2016-2018, we expect its 2 8. Profit Net Operating e 0

th mn USD mn USD % yoy. yoy. % 100.0 120.0 140.0 160.0 e - - - 20.0 40.0 60.0 80.0 200.0 150.0 100.0 100.0 150.0 - 50.0 50.0 - - las of USD209.9mn. As a result, I -

13 11 - t

edeemable page : : et et 2012 IMAX China IMAX China

We thinkWe net profit drivers will mainly come from increasing IMAX Ch ina networks and improving margins. 15.4 Profit 2012 12.9

edeemable 36.1% prof 35.7% fo r disclaimer 2013

20.9 2013 30.5% it expected to grow at 17.5 48.9%

Operating profit C shares to CMC and Fountain Vest with total consideration of USD80mn. In the IPO, IMAX China has net profit 2014 ’ ’ 2014 22.8 31.2

s s C shares into common shares, with arevaluation of net loss of USD210mn. This revaluation will not

d to grow at grow d to adjusted

Net Estimates Profit Operating Profit Estimates

If we exclude the non cash loss andexpenses, its adjusted net profit reached USD43.4mn, up - - 2015 181.9 898.5% 35.8% 2015 42.3 growth yoy 2016E net profit to reach USD 53.4 growth yoy 2016E 66.3% 70.4 and gross margins the in future.

MAX China has made

a 53.2%

2017E 3 81.9

53.3%

a 2017E 107.9 Year CAGRYear o

Year CAGR of 2018E 29.5% 106.0

29.3% 2018E 139.6 , USD107 - 200.0% - - - - 0.0% 1000.0% 800.0% 600.0% 400.0% 200.0%

10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0.0% f 61.2 4 . 8. ,9mn and USD139

8 39 a mn, USD mn, % Figure Source: the Company, Guotai Junan International. Junan Company,Guotai the Source: Figure International. Junan Company,Guotai the Source:

. loss of USD181.9mn.

- - - 0 200.0% 150.0% 100.0% 100.0% in - 50.0% 50.0% % 0.0%

mn USD think We

201 in 100.0 120.0 140.0 20.0 40.0 60.0 80.0 As aresult, we its expect operating expense ratio to - -

- 12 14 201 5 91. 2012 -2018. : :

0mn IMAX China IMAX China 5 2012

13.2 IMAX China could improve its operating margin -2018. 22.7% EBITDA margin EBITDA margin gross dutdntpoi margin profitAdjusted net , and . In 2015, IMAX China's operating expenses 6mn 2013 2013 16.2 60.4% Adjusted net profit Adjusted net We think adjustedWe net profit would be a , up 66.3 up , USD116 er cost controlthanwe f In 2014-2015, IMAX China issued ’ ’ 2014 air value adjustment of conversion 2014 s s 26.0

Margin Estimates Margin Adjusted . 66.9% 2015 %, %, 5mn 43.4 2015 net margin net margin operating 53. 41.1% , up , up 2016E Net Profit 61.2 3 growth yoy

2016E %

41.1 , and 29 In 2016-2018, we 48.8% 2017E 91.0 %, %,

had had

2017E

Estimates 48. Page Page 2018E 28.0% 116.5 expected. . 3 8 % yoy, yoy, % %, and and %, 13 2018E of of 20.0% 30.0% 40.0% 50.0% 10.0% 60.0% 70.0% 80.0% 0.0% 19 In In

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

Simple Average Simple Imax China Holding Inc Holding China Imax Simple Average Simple Orange Sky Golden Sky Orange En Harvest National Cinemedia Inc National Carmike Cinemas Inc Cinemas Carmike Poly Culture Culture Poly - Corp Group Simple Average Simple Average Simple USD116. Nan Hai CorpNan Ltd Inc Holdings Cinemark Weighted Average Weighted Average Weighted Weighted Average Weighted Average Weighted Average Weighted business model - Corp Media Omnijoi Corp Imax Regal Entertainment- Group Regal T Chinatrading should be Corporation has established a stable relation with Hollywood transferring in films into IMAX As format. aresult, we IMAX think retain expensive Table PE, 46.4%, with ROE of 27.3%, much higher than Se ( Bloomberg Source: Average Simple Wanda LineCinema Co- Ltd China Cinemas in Shanghai shareA Holdings Smi Ltd Group China Cinemas in HK Laboratories Inc Dolby CinemaUS Equipment Provider Entertainment Hlds Amc Cinema US Company network IMAX China has Valuation TP at HKD50.00 trading A Dolby Vision has a Digital, Dolby Atmos, and Dolby Vision. IMAX China has PE and 19.9x FY17 EV/EBITDA. Cinema Wanda China's order backlog came from Cinema.Wanda Currently, CinemaWanda (002 Peerscinemas with currently US cinema peers only trade at 7.8x FY17 EV/EBI from think were trading at more than twice arget e strong driver from CinemaWanda could be a great catalyst for th adjusted 25.7x 2017E adjusted

the the that s e -

its high margi its las

11: at Price

. BO, similar to its peers in the 5mn t A

they are not comparable.

Dol

a -

page

Cl A Cl

- Peers Comparison price Cl A Cl H premium

A A

, up 41.1%

y fo

Sep 8 Sep , we think

was aglobal audio system leader r set at represents

can a disclaimer a strong connection with Wanda Cinema. 1) The very limited n business model. Moreover, IMAX as Corporation has around 1,000 IMAX networks worldwide, IMAX much highermuch profit margin

Stock Code Stock

300528 CH 002739 CH 2016), 2016), RGC US RGC to its to CKEC US NCMI US IMAX U IMAX in China 1970 HK be sustained. AMC US AMC CNK US DLB US DLB 1132 hk 3636 hk

680 hk 198 hk HKD50.0 at a at , 48. yoy S

Guotai Junan International. International. Junan Guotai PE, or peers

that

1.0 prem Currency HKD HKD USD HKD USD USD HKD CNY USD USD HKD USD CNY USD

. x FY1

its valuation premium from Wanda Cinema Wanda from premium valuation its g that that

From the valuation, we can 8 0 due to strong new orders from CinemaWanda in the future.

lobal 1.0 ium ium %

and investment rating 2) Peers with US cinemas. However, large parts of IMAX China's revenue actually came Last price Last

, andyoy 28. x 2015 of the valuation of China cinemas Hongin Kong. estimateWe that around 60% of IMAX 5

Our FY1 Our 43.45 43.45 15.18 15.18 19.98 19.98 32.32 32.32 38.90 38.90 45.91 45.91 30.14 30.14 21.79 21.79 30.99 30.99 71.69 71.69 50.04 US and China. thinkWe cinema peers might be a good valuation comparison. However, to its to 0.40 0.40 0.21 0.21 0.69 0.69

-FY network, far less than

Dolby's valuation reached 19.0x FY17 PE and 9.4x FY17 EV/EBITDA. 18E

Market Cap -2018E peers. 15,440.3 15,440.3 14,278.3 14,278.3 35,062.7 35,062.7 16,592.7 16,592.7 15,687.9 15,687.9 26,497.0 26,497.0 23,419.4 23,419.4 97,988.4 97,988.4 39,179.8 mn HKD mn 1,097.0 1,097.0 7,343.8 7,343.8 4,921.4 4,921.4 6,113.3 6,113.3 9,355.4 9,355.4 6 adjusted its -FY

0 is

than , with around 90% of its revenue from licensing % yoy global peers. peers. global

FY16F expectedexten to d 1 PEG. 39.3 39.3 36.4 36.4 38.1 38.1 13.4 13.4 81.2 81.2 19.8 19.8 33.6 33.6 22.5 22.5 15.7 15.7 24.4 24.4 27.2 28.4 38.6 34.1 34.1 33.2 46.8 46.8 19.1 26.2 31.2 31.2 46.8 46.8 20.7 n.a. n.a. 8

a its Adjusted PE

PEG, below the overall peers' djusted , respectively , FY17F

29.4 29.4 17.4 17.4 32.0 32.0 11.3 11.3 43.8 43.8 17.1 17.1 23.7 23.7 18.6 18.6 11.0 11.0 20.3 20.3 21.3 21.6 26.8 25.4 25.4 23.4 34.6 34.6 14.0 17.3 22.5 22.5 34.6 34.6 19.0

n.a. n.a. peers. TDA is

tell thatChinatell cinemas list

that of ‘ FY18F Accumulate’

23.4 23.4 20.0 20.0 26.8 26.8 25.3 25.3 15.4 15.4 20.5 20.5 16.5 16.5 18.3 18.3 19.0 17.9 20.5 19.9 19.9 18.9 26.1 26.1 11.0 15.0 18.6 18.6 26.1 26.1 17.4 n.a. n.a. We think IMAX think We 9.9 9.9 6.8 6.8 and 6.5x FY18 EV/EBITDA, dueto slow revenue growth. net profit

In FY16, we expect IMAX's adjusted net margin

IMAX China. As a result, we think

FY16F IMAX. IMAX. 310.6 310.6 167.7 167.7 127.9 127.9 109.8 189.3 189.3 Dolby Dolby . 19.0 19.0 41.2 41.2 16.2 16.2 19.7 19.7 49.0 49.0 23.3 23.3 93.2 93.2 33.9 33.9 38.4 71.8 88.2 72.2 72.2 83.7 47.0 47.0 47.0 47.0 27.8 n.a. n.a.

its cinemaits network from 330 in 7M16 to 1,000 by 2020. Our

GAAP PE

FY17F

238.7 238.7 141.1 141.1 TP TP forecasts 12.7 12.7 32.8 32.8 14.1 14.1 47.5 47.5 17.2 17.2 31.4 31.4 18.8 18.8 61.0 61.0 27.2 27.2 28.5 50.2 51.5 52.3 52.3 56.3 34.1 34.1 96.2 81.6 34.1 34.1 25.5 . n.a n.a. s theirAs revenue structure is Vision network farwas small . 's new orders

Although IMAX China is trading

is is

’ s FY18F 110.7 110.7 set set

27.3 27.3 25.0 25.0 15.5 15.5 28.4 28.4 16.2 16.2 45.6 45.6 23.1 23.1 24.7 39.8 38.9 28.5 28.5 35.1 26.0 26.0 45.6 26.0 26.0 21.0 n.a. n.a. n.a. n.a. n.a. 9.5 9.5 technological is trading is CH) 739 at around 34.4x FY17E

at at

weighted average reach USD61.2mn, USD91. FY16F 50. HKD 24.7 24.7 12.4 12.4 14.0 14.0 11.9 11.9 12.6 16.8 16.8 12.3 27.3 27.3 12.7 11.1 11.1 27.3 27.3 11.1 n.a. n.a. 9.3 9.3 5.0 5.0 9.0 9.0 8.5 8.5 9. 8.6 8.6 8.9 8.9 9.0 9.0 9.0 ed 2

EV/EBITDA

as and high profit business margin FY17F 18.3 18.3 10.8 10.8 10.1 10.1 12.9 12.9 20.0 20.0 20.0 20.0 n.a. n.a. According to our estimates, our 9 8.3 8.3 3.7 3.7 7.7 7.7 7.8 7.8 8.2 8.2 6.6 6.6 9.8 9.8 7.9 7.9 7.9 9.8 9.8 9.4 8.3 8.3 7.7 7.7 9.3 9.3

.0 .0 Shanghai A

competitive edge could

0 . Itsproducts. include Dolby , representing FY18F 14.2 14.2 13.5 13.5 10.0 10.0 15.2 15.2 15.2 n.a. n.a. n.a. 2.9 2.9 6.4 6.4 6.9 6.9 8.7 8.7 7.6 7.6 5.3 5.3 8.2 8.2 8.0 8.0 6.5 6.5 6.9 8.7 8.7 9.0 6.6 6.6 6.8 6.8 7.8 7.8

IMAX China should be

Adjusted PEG PEG

totally different, we - er FY16 share

n.a. n.a. n.a. - of of 1.0 1.0 0.5 0.5 1.7 1.7 0.7 0.7 0.6 0.6 1.3 1.3 0.8 0.8 1.1 1.1 1.5 1.5 0.9 0.9 1.0 1.0 1 1.1 1.1 1.1 1.0 1.0 0.7 0.4 0.4 1.0 1.0 0.8 0.8 2.1 2.1 than 18 .7 .7 at a at

28. 1.

Page Page

companies (17.4) FY16 4x

ROE (5.8)

27.3 27.3 19.5 19.5 10.6 10.6 10.9 10.9 17.4 17.4 10.2 11.9 11.9 12.4 12.4 17.4 17.4 11.3 11.3 0mn n.a. n.a.

the 2.0 2.0 7.8 7.8 3 7.5 7.5 9.4 9.4 3.7 3.7 1.3 7.5 7.5 6.9 6.9 However, 4x 4x .1 .1 relatively relatively . to reach

2017E

IMAX , and margin Net help help of of FY16

(1.0) 46.7 46.7 38.1 38.1 18.5 18.5 15.2 15.2 21.7 21.7 21.9 21.9 22.1 22.1 17. 19.5 19.5 22.3 13.2 13.2 15.7 19.0 19.0 21.5 22.5 22.5 19.5 19.5 22.6 22.6 19 3) 3) n.a. n.a.

7.7 7.7 9.9 9.9 7.6 7.6 5

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

Depreciation of PPE Depreciation EPS Diluted profit Operating Gross profit Operating cashw flo Operating paid Tax of assets film Amortization profit Net tax Income taxation before Profit SG&A Other Other PPE Capex PPE cash flow Investment atre yearSha outstanding end EPS Basic netAdjusted profit expenses Other Se International. Junan Company,Guotai the Source: exchange Foreign C SharesClass Pr IPO cash flow Financing revenue equipmentin sharing Investment joint capital change Working nonOther cash item income Net cash flow Operating flow statementsCash (Dec Year End mn USD) expenses Interest income Interest of revenue Cost Revenue statement (Dec Income Year Statement Financial Adjusted EPS Adjusted Investing contracts for transferred Payment legally Ending balance ofEnding cash of cash balance Beginning cashNet change cash flow Financing Others costs Share Issuance oceeds from of oceeds from Redeemable issue e

loss

cash flow

las

page

End fo

mn USD) mn r

disclaimer

(12.0) (10.6) (31.8) (16.7) (27.5) (11.3) 0.090 0.090 0.090 0.090 303.8 303.8 0.086 0.086 2014 2014 (6.3) (0.2) (4.0) (0.0) (2.3) (0.0) (2.6)

28.2 28.2 31.2 31.2 46.5 29.1 29.1 22.8 22.8 26.0 26.0 40.0 40.0 78.2 78.2 22.8 22.8 48.3 48.3 38.1 37.4 10.2 10.2 3.9 3.9 6.8 6.8 4.7 4.7 2.1 2.1 0.2 0.0 0.0 0.0 0.0

(170.9) (181.9) (0.620) (0.620) (181.9) (213.7) (12.3) (23.9) (13.5) (13.9) (38.3) (14.1) (52.7) (11.0) 197.8 197.8 355.3 355.3 0.122 0.122 110.6 2015 2015 (0.2) (0.6) (6.1) (0.0) (2.0) 42.3 42.3 72.2 43.4 43.4 40.0 40.0 71.3 71.3 90.7 90.7 42.4 56.6 48.3 48.3 4.8 4.8 5.5 5.5 0.4 0.4 0.0 0.0 0.0 0.0

2016E 2016E (17.8) (20.4) (16.2) (21.9) (49.5) (16.9) 100.8 100.8 0.150 0.150 0.150 0.150 145.5 145.5 358.9 358.9 0.171 0.171 174.6 174.6 (0.7) (5.3) 70.4 70.4 96.0 71.2 71.2 53.4 53.4 17.8 17.8 61.2 61.2 53.4 53.4 39.1 39.1 83.9 83.9 90.7 90.7 5.8 5.8 6.6 6.6 0.0 0.0 0.0 0.0 0.8 0.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

2017E 2017E (27.3) (27.5) (19.4) (36.1) (29.6) (53.3) (20.2) 107.9 107.9 143.3 109.2 109.2 0.227 0.227 0.227 0.227 196.6 196.6 362.5 362.5 0.251 0.251 174.6 174.6 212.4 212.4 (0.8) (7.8) 81.9 81.9 27.3 27.3 58.0 58.0 91.0 81.9 81.9 37.8 37.8 6.7 6.7 7.9 7.9 0.0 0.0 0.0 0.0 1.2 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

2018E 2018E (35.3) (34.2) (23.3) ) (35.4 (60.3) (24.2) (10.1) 139.6 139.6 183.8 141.4 141.4 106.0 106.0 162.4 162.4 106.0 106.0 0.291 0.291 0.291 0.291 4.2 244.2 366.1 366.1 138.2 138.2 0.318 212.4 212.4 350.6 350.6 116.5 (0.9) 35.3 35.3 39.4 39.4 7.5 7.5 9.5 9.5 0.0 0.0 0.0 0.0 1.8 1.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total noncurrent Total liabilities Class C Redeemable revenueDeferred Others current liabilNon Assets Total current assets Total andequivalents Cash receivablesTrade andother receivables cing Finan Prepayments Inventories Film ass assets Other assets Current noncurrent assets Total receivables Financing come in taxDeferred assets assets Other PPE current assets Non sheet Balance Year (Dec End Adjusted netAdjusted profit Net EBITDA profit Operating Gross profit Revenue yoy Growth d netAdjuste margin margin Net EBITDA margin margin Operating Gross margin Indicators Key BVPS equity Total current liabilities Total income Deferred payables Tax andotherAccruals liabilities payablesTrade andother liabilities Current

profit

ets

ities

mn USD)

60.4% 37.2% 48.9% 29.1% 50.8% 59.4% 44.1% 39.8% 33.2% 39.8% 30.5% 151.2 151.2 0.087 0.087 2014 2014 67.9 67.9 62.2 62.2 26.8 22.5 83.3 48.3 25.3 20.2 42.8 26.3 26.3 62.6 39.9 12.9 12.9 3.4 3.4 0.1 1.4 4.0 9.3 9.3 5.1 5.1 3.9 3.9 0.8 0.8 8.3 8.3

- - 164.5% 898.5% 66.9% 32.3% 35.8% 47.5% 65.3% 55.5% 41.3% 39.2% 38.3% 139.2 139.2 157.7 157.7 222.2 222.2 0.444 0.444 2015 2015 82.9 82.9 29.1 29.1 29.1 90.7 35.6 25.3 52.0 35.3 35.3 12.2 12.8 12.8 0.0 0.0 6.4 0.0 1.7 4.4 6.2 6.2 4.2 0.0 0.0 3.8 3.8 1.0 1.3

- 129.4% 2016E 2016E 41.1% 57.4% 66.3% 36.7% 47.5% 66.0% 32.9% 31.6% 42.1% 38.3% 174.6 174.6 235.5 235.5 332.9 332.9 0.588 0.588 211.1 97.4 97.4 35.0 35.0 35.0 44.5 30.3 60.3 86.8 86.8 56.4 14.9 14.9 0.0 0.0 6.5 0.0 2.1 5.2 7.5 7.5 8.0 0.0 0.0 6.3 6.3 1.4 1.6

Page Page 2017E 2017E 53.2% 48.8% 48.1% 53.3% 41.6% 47.5% 72.9% 49.2% 35.1% 46.3% 38.3% 212.4 212.4 298.8 298.8 0.808 0.808 293.0 293.0 112.3 411.1 42.0 42.0 42.0 63.8 36.4 67.7 76.1 76.1 36.3 10.9 22.5 22.5 0.0 0.0 0.1 2.5 6.3 9.0 9.0 8.4 0.0 0.0 7.3 7.3 1.8 1.9

15 of of 2018E 2018E 29.5% 28.0% 27.8% 29.3% 43.4% 47.5% 75.3% 28.3% 24.2% 47.7% 38.3% 128.0 128.0 350.6 350.6 125.5 125.5 447.0 447.0 574.9 574.9 1.090 1.090 399.0 399.0 50.3 50.3 50.3 70.7 43.7 74.5 78.7 78.7 10.7 10.7 10.7 12.0 24.0 24.0 19 0.0 0.0 0.1 3.0 7.5 0.0 0.0 9.7 9.7 2.2 2.3

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

from the IMAX BO the in future. In important and successful theatrical distribution platforms for major event films around the world. utilize IMAX theatre to s connect with audiences innovative in ways, such, andas IMAX’s theatre immersive motion picture experience for which the IMAX® brand has become known globally. Top filmmakers and studios mainly rely on providing IMAXsystem to cinemas. network has Se complex Greater China demand is the key driver. IMAX has a global cinema network, with 990 IMAX screens in commercial Source: Table cinematicsolution combining proprietary software, technology companies specializing in motion picture technologies and presentations. IMAX offers a unique end- IMAX Corporation a was Appendix companies have accepted IMAX's network to deliver far better movie watching experiences to moviegoers. US North America. In 2007.11 2007.11 2015.9 2015.9 2013.4 2012.3 2011.6 2009.2 2008.7 2008.5 2007.9 2004.6 2004.3 e 2011 2011 2008 2008 2003 2002 1974 1973 1970 2012 Year , up4.0% yoy, 36.3% of IMAX network, global th e -

the Company the las 1 : IMAX : The Dark Knight Dark The Racer" "Speed projection IMAX Digital Digital IMAX "Beowulf" "Transformers" Express" Polar "The "Spider Reloaded" Matrix "The IMAX DMR IMAX Dome Child" "Tiger Event Important Laser system in London in system Laser launched officially IMAX "Oblivion" Games" Hunger "The Party a of Founding The camera digital 3D 4K Experience" Concert 3D The Brothers: "Jonas Te , up 16.2% yoy. yoy. 16.2% up es, t IMAX screen

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First DMR release for release DMR First opened in San Diego's Balboa Park in 1973. in Park Balboa Diego's San in opened ratio aspect a 1.89:1 on project to projectors theatre traditional into brand their extended IMAX 2008, In In Fleet H. Reuben the at Theatre Dome Heikoff Jacobs Marilyn and Heikoff Eugene the installation, Dome IMAX permanent first The auditoriums, helped IMAX to grow from 299 screens worldwide at the end of 2007 to over 1,000 screens by the end of 2015. of end by the screens 1,000 over to 2007 of end the at worldwide screens 299 from grow to IMAX helped auditoriums, and Star Wars: The Force Awakens. Force The Wars: Star and las via projected films first The blacks. blacker and gamut colour a wider with along picture, sharper brighter, a in results the with Filmed 3D. In be shown on screens 36 m (118 ft) wide or more. or wide ft) to (118 m films 36 allowed screens on to and shown be ratio aspect IMAX traditional the taining re by screens digital smaller the over improved it but projectors, two used it 3D systems, the Like Kodak. Eastman from licensed patents on based system, projection laser 4K new a testing began IMAX 2012, April In engines. 65 Phantom two integrating AbelCine, and Research Vision alongside a IMAX 2011, In Re First rel DMR IMAX an and Clones the of conve for 35mm on shot films allowed technology intermediate This format. IMAX into upconverted be to films conventional allows process Remastering) Media (Digital the DMR near proprietary operation in IMAX's is also theatre 3D IMAX An some. in sickness motion and viewers, most in motion of sensation a created s the viewed visitors million five About expo). the in structure Pavil US the in featured was ft) 66 × ft (89 m 20 × m 27 measured that screen IMAX an Washington, Spokane, in '74 Expo During redevelopment. for hiatus on is Place in still is installation The Superior. of North film the showing 1971, May in debuted It Toronto. in Place Ontario at theatre first the Child, Tiger Milestone image. - 22 abrighter for allow to images rimposed supe the use presentations 2D while eye, each for image the display to used is projector other with a half a with other su projected are images 2K two The (IDF). Format Digital IMAX or DCI in content 3D or 2D either present can that projectors First 3D DMR film surpass 150 minutes. 150 surpass to film DMR First footage. of 28 minutes with cameras, IMAX with shot partially be to feature mainstream First Digital IMAX in release DMR First Digi The First China Film. implies, the m the implies, syst projection digital laser" with "IMAX first Europe's unveiled IMAX morning, this Square Leicester in cinema Empire the At rat Aspect resolution. 4K in Filmed for release DMR First engagement. Limited

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tal IMAX projection system, debuted in 2008, is designed to be used with shorter 1.89:1 aspect ratio screens. The system uses system The screens. ratio aspect 1.89:1 shorter with used be to designed is 2008, in debuted system, projection IMAX tal

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IMAX Corporation IMAX film, was demonstrated at Expo '70 in Osaka, Japan. The first permanent IMAX installation was built at the Cinesphere Cinesphere the at built was installation IMAX permanent first The Japan. Osaka, in '70 Expo at demonstrated was film, IMAX

Columbia Pictures Columbia Warner Bros Warner Fusion Camera System. Limited engagement. First DMR release for release DMR First engagement. Limited System. Camera Fusion China, as IMAX might at least build up around 50 IMAX screens, IMAX might ChinaIMAX's are

China. - format re format

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and 37 inand 37 Canada, up 2.8% yoy

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theatre In US & Canada, IMAX might mai

IMAX s IMAX release of the 1995 film Apollo 13, were the first official applications of the DMR process. DMR the of applications official first the were 13, Apollo film 1995 the of release - -

based IMAX uses a laser light source rather than a stupendously powerful (15kW) xenon arc lamp. This This lamp. arc xenon (15kW) powerful stupendously a than rather source light a laser uses IMAX based resolution imaging to increase the perceived resolution to approximately 2.9K. For 3D presentations, one one presentations, 3D For 2.9K. approximately to resolution perceived the increase to imaging resolution

Lionsgate Films. Lionsgate

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IMAX Corporation is oneof the world’s leading entertainment two

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s with the introduction of Digital IMAX, a lower a IMAX, Digital of introduction the with s largest markets.

creen, which covered the viewer's total visual field when looking directly forward. This This forward. directly looking when field visual total viewer's the covered which creen, ntional theatres to be shown in IMAX venues. In 2002, Star Wars: Episode II II Episode Wars: Star 2002, In venues. IMAX in shown be to theatres ntional up 41.3%yoy - cost option, which allowed for the conversion of existing multiplex multiplex existing of conversion the for allowed which option, cost

, jointly I n 2015, IMAX had .

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- of of end 19

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

Se Over 300 Int Junan Guotai Corporation, IMAX Source: Total Worldwide World the of Rest America Latin CIS the & Russia Europe Western China) Greater (excluding Asia China Greater Canada & States United Table International. Junan Guotai Corporation, IMAX Source: Total World the of Rest America Latin CIS the & Russia Europe Western China) Greater (excluding Asia China Greater Canada States United Complex Commercial Table Table films have been released to th IMAX f DMR IMAX Universal Pictures and Imagine Entertainment, was released September in 2002 to 48IMAX theatre Ones. of the more recent e

2014 2014 2013 2012 2 2010 2009 2008 2007 2006 2005 2004 2003 2002 Year e - - - 011 theatres. Since the release of Apollo 13: The IMAX Experience, to December 31, 2014, an additional 196 IMAX DMR las 3 2 4 : IMAX Order Backlog : IMAX Global Network : Projects DMR IMAX

page

IMAX DMR films.

Number of films of Number ilms, Theilms, Hobbit: The Battle of the Five Armies: An IMAX 3D Experience, was released Decemberin 2014 to 592 fo r disclaimer

43 39 36 26 16 11 9 6 7 4 3 2 2

2011 2011 2011 2011

269 269 497 497 263 263 124 70 26 24 15 22 35 36 38 23 25 42 Battl and Gods Exodus: 1/ Part Crossing: The Madagascar/ of Penguins 6/ Hero Big 6/ Hero Big Interstellar/ Wick/ John Fury/ Untold/ Turtles/ Teenage Mutant Ninja Turtles/ Ninja Ninja Mutant Mutant Teenage Teenage Turtles/ Galaxy/ the of Guardians Kingdom/ Lunar of Witch Haired White The Lucy/ Hercules/ Extinction/ of Age Transformers: 2/ Dragon Les Journey/ Unexpected An Hobbit: The CZ12/ 1942/ to Back Guardians/ the of Rise Pi/ Tintin: The Secret of the Unicorn/ Puss in Boots/ Happy Happy Boots/ in Puss Unicorn/ the of Secret The Tintin: – Hallows Deathly the and Potter Harry Moon/ Par a of Founding The 2/ Panda Fu Kung Tides/ Stranger On Caribbean: the of Pirates Tides/ Stranger On Pirate Thor/ Five/ Fast Punch/ Sucker Moms/ Needs Mars Moms/ Needs Mars Four/ Number Am I Sanctum/ Tangled/ Hornet/ Green The Still Stood Earth the Day Da The The Africa/ 2 Escape Madagascar: Eye/ Eagle Knight/ Dark The Racer/ Speed Light/ a Shine Chronicles/ Spiderwick The 3D/ U2 Museum the at Night Feet/ /Happy Season Open Bully/ Ant The Returns/ Superman Poseidon/ Vendetta/ for V Revolutions Matrix The Reloaded/ Matrix The films of Names Frankenweenie/ Paranormal Activity 4/ Tai Chi Hero/ Cloud Atlas/ Skyfall/ Cirque du Soleil: Worlds Away/ The Twilight Saga: B Saga: Twilight The Away/ Worlds Soleil: du Cirque Skyfall/ Atlas/ Cloud Hero/ Chi Tai 4/ Activity Paranormal Frankenweenie/ Avatar Carol/ Christmas A America: The Winter Soldier/ Noah/ Transcendence/ The Amazing Spider Amazing The Transcendence/ Noah/ Soldier/ Winter The America: Speed for Need Empire/ an of Rise 300: RoboCop/ Gravity/ Gravity/ King/ Monkey The Frankenstein/ Recruit/I, Shadow Ryan: Jack of Desolation The Hobbit: The Fire/ Catching Games: Hunger The World/ Dark The Thor: Game/ Ender's Phillips/ Stalingrad/ Captain Dragon/ Gravity/ Sea the of Rise Dee: Detective Young Never/ the Through Metallica: Oz/ of The Wizard The Riddick/ es/ Bon of City Instruments: Mortal Rim/ Pacific Rim/ Pacific Chi/ Tai of Man Down/ House White Z/ War World 2/ Me Despicable Steel/ of Man Earth/ After 6/ Jur Gods/ of Battle Z: Ball Dragon Retaliation/ Joe: G.I. Powerful/ and Slayer/ Giant the Great Jack the Oz Hard/ Die to Day Good A Demons/ the Conquering West: the to /Journey Gun Hunters'/Top Witch Gretel: & Grandmaster/Hansel The Spider Amazing Ages/The Titans the of Wrath Tr the On HOUBA! Games/ Hunger The Carter/ John Lorax/ The Seuss' Dr. Island/ Mysterious The 2: Journey Awakenin/ Underworld: – Hallows Deathly the and Potter Megamind/Harry Ga'Ho of Owls The Guardians: the of Legend Afterlife/ Evil: Resident Edition/ Special Avatar: Aftershock/ Inception/ Eclipse/ T Time/ of Sands The Persia: of /Prince After Forever Shrek 2/ Man Iron Dragon/ Your Train to How Wonderland/ in Alice Half the and Potter Harry Fallen/ Transformers: the of sonian/ Revenge Smith the of Battle Museum: the at Night Trek/ Star Aliens/ vs. Monsters Watchmen/ Experience/ Concert 3D The Brothers: Jonas 300/ Spider 300/ Fire of Goblet the and Potter Harry Factory/ Chocolate the and Charlie Begins/ Batman Robots/ Az of Prisoner the and Potter Harry II Episode Wars: Star 13/ Apollo Story 2013/ 2013/ Story 5 6

e of the Five Armies/ Seventh Son/ Gone with the Bullets/ Night at the Museum: Secret of the Tomb the of Secret Museum: the at Night Bullets/ the with Gone Son/ Seventh Armies/ Five the of e

2012 2012 2012 2012

598 598 108 290 e IMAX theatre IMAX e 276 276 122

27 19 32 46 42 34 The first IMAX DMR Apollo film, 13: The IMAX Experience, produced conjunctionin with 35 23 33 55

3 5 -

Man 3/ Harry Potter and the Order of the Phoenix/ Transformers/ Beowulf/ I Am Legend/ I Am Beowulf/ Transformers/ Phoenix/ the of Order the and Potter Harry 3/ Man

ernational. ernational.

2013 2013 2013 2013 150 150 319 701 701 407 407 239 / Titanic/ Battleship/ The Avengers/ Dark Shadow/ Men in Black 3/ Prometheus/ Madagascar 3: Europe's Most Wanted/ Rock of of Rock Wanted/ Most Europe's 3: Madagascar Prometheus/ 3/ Black in Men Shadow/ Dark Avengers/ The Battleship/ Titanic/ / 34 23 25 40 49 61 10 32 19 13 39 55

2014 2014

- 2014 2014 cy/ Tai Chi 0/ 0/ Chi Tai cy/ Lega Bourne The Retribution/ Evil: Resident Ark/ Lost the of Raiders Recall/ Total Rises/ Knight Dark The Man/ 215 215 329 809 809 397 397 217 36 29 31 45 56 68

14 27 25 19 38 57

– network.

Attack of the Clones the of Attack kaban/ Spider kaban/ 2015 2015 2015 2015 943 943 290 342 372 372 215 37 40 35 49 69 81 21 20 23 13 36 44

The Expendables 3/Forrest Gump/ The Maze Runner/The Equalizer/ Breakup Buddies/ Bang Bang!/ Dracula Dracula Bang!/ Bang Buddies/ Breakup Equalizer/ Runner/The Maze The Gump/ 3/Forrest Expendables The

Part 2/ Sector 7/ Cowboys & Aliens/ Sector 7/ Final Destination 5/ Contagion/ Real Steel/ The Adventures of of Adventures The Steel/ Real Contagion/ 5/ Destination Final 7/ Sector Aliens/ & Cowboys 7/ Sector 2/ Part

- - Blood

Man 2 /The Polar Express Polar /The 2 Man

Part 1/ Tron: Legacy Legacy Tron: 1/ Part

4Q13 4Q13 701 701 150 319 407 407 239 23 25 40 49 61 34

10 32 19 13 39 55 Prince/ Cloudy with a Chance of Meatballs/ Where the Wild Things Are/ Michael Jackson's This Is It/ It/ Is This Jackson's Michael Are/ Things Wild the Where Meatballs/ of Chance a with Cloudy Prince/ Feet Two/ Flying Swords of Dragon Gate/ Mission: Impossible Impossible Mission: Gate/ Dragon of Swords Flying Two/ Feet

1Q14 1Q14 707 707 151 320 24 26 40 49 62 35 431 431 240 14 31 28 23 42 53

2Q14 2Q14

735 735 163 324 - Man 2/ Man 26 28 42 51 66 35 419 419 235 15 29 28 21 38 53

3Q14

Coming Home/ Godzilla/ Maleficent/ Edge of Tomorrow/ How to Train Your Your Train to How Tomorrow/ of Edge Maleficent/ Godzilla/ Home/ Coming 3Q14 751 751 176 325 assic Park/ Oblivion/ Iron Man 3/ Star Trek Into Darkness/ Fast & Furious Furious & Fast Darkness/ Into Trek Star 3/ Man Iron Oblivion/ Park/ assic 26 29 42 52 66 35 439 439 247 16 28 28 18 39 63

Misérables/ 4Q14 4Q14 809 809 215 329 29 31 45 56 68 36 397 397 217

14 27 25 19 38 57

1Q15

1Q15 820 820 220 330 29 33 45 58 69 36 403 403 219

19 25 26 21 38 55

ty/ Super 8/ Cars 2/ Transformers: Dark of the the of Dark Transformers: 2/ Cars 8/ Super ty/

2Q15 2Q15 852 852 232 333 34 33 48 62 73 37 391 391 218 20 22 23 20 36 52

–

3Q15 Ghost Protocol Ghost oy Story 3/ The Twilight Saga: Saga: Twilight The 3/ Story oy 3Q15 887 887 258 333 36 34 48 65 76 37 ole/ Paranormal Activity 2/ 2/ Activity Paranormal ole/ 384 384 218 22 22 23 16 32 51

reaking Dawn Dawn reaking

Kings/ The Hobbit: The The Hobbit: The Kings/

Lone Ranger/ Elysium/ The The Elysium/ Ranger/ Lone

4Q15 Smaug/ Dhoom / Divergent/ Captain Captain Divergent/ / 4Q15 943 943 290 342 y the Earth Earth the y 40 35 49 69 81 37 372 372 215 ail of the Marsupilami/ Marsupilami/ the of ail 21 20 23 13 36 44

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Page Page

– 1Q16 1Q16 1Q16

Part 2/ Life of 2/ Life Part 952 952 295 344 388 388 227 Stood Still/ Still/ Stood 40 37 48 70 81 37 24 20 23 13 44 37

17 3/ Police Police 3/

of of 2Q16 2Q16 382 382 264 990 990 318 346 19 23 19 24 13 39 60 43 38 49 73 86 3 7

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

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the Company the las t

page fo r , Guotai disclaimer 14 22 30 46 2 7

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Page Page - - Men: Men: Man/ Pixels/ Pixels/ Man/

Indiana Indiana 18 of of 19

Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016

Se INTERESTS OF DISCLOSURE Horizon: 6to 18 Time months Index HangSeng Hong Kong Benchmark: The Definition Rating Sector Horiz Time Hong Hangg Kong Benchmark: The Sen Company (1) (2) This Research Report does not constitute an invitation or offer to acquire, purchase or subscribe for securities by or Guotai purchase does not to or offer Report acquire, for aninvitation Research securities subscribe This constitute DISCLAIMER (Hong Kong) Limited ("Guotai (Hong Kong) (3) (4) or investment decisions made by the asset management and investment banking groups of Guotai and by groups banking made decisions asset investment or investment the tomanagement opinions be contrary of Guotai executives professional and other dealers persons, by form sales written or in orally expressed strategies or investment opinions to or becontrary report differ this in may expressed opinions Any proprietarily). or invest underwriter investment banking, and etc. investment reports, services including research (for example, placing lead agent, the s manager, Though best effort has been made to ensure the accuracy of the information and data contained in this Research Report, Guotai Report, in anddata this Research of has the ensure been contained information the to accuracy effort made best Though © 2016 Guotai subject applicable law to or or regulati would becontrary use availability publication, where distribution, such any jurisdiction in or or resident by,of or entity to located any a or who use person is distribution citizen not Research is or directedfor intended at, Report This decision. to prior any investment advisers their own consult financial and where necessary muta unpredic with inherently andeconomic derived assumptions ofconditions and the the political from future forecasts estimates the guarantee not Tel.: (852) 2509- 27/F., Low 181 Queen’s Plaza, Millennium Grand Block, Road C Website: www.gtja.com.hk e Underperform Neutral Outperform Rating Sell Reduce Neutral Accumulate Buy Rating th ble situation, so uncertainty may contain. Investors should understand and comprehend the investment objectives and its relat and its objectives investment the and comprehend understand should Investors contain. may uncertainty so ble situation, The The Analysts andtheir associates The The Analysts andtheir associates its group companies equaldo not hold to Limited (01788 HK), Holdings Investment CompanyBinhai Limited (02886 HK) andLink Limited (08237 HK), Holdings Guotai Guotai (00633 HK), Limited (Holdings) Access All China (00198 HK), Limited Group Holdings SMI for Except within the preceding 12 preceding the mont within Guotai e

las Guotai

t Rating Definition on: 6to 18 months page

Junan andJunan its group companies

Junan and its group companies to any registration or licensing requirement within such such within jurisdiction. requirement or and groupany registration Junan licensing to its companies Junan Securities (Hong Kong) Limited. (Hong Limited. Kong) Junan Securities Rights Reserved.All

9118 Fax: (852) 2509- fo r accuracy and completeness of the information and data herein. This Research Report may contain some forward some - contain Report Research may This and herein. data information of the and accuracy completeness disclaimer

Junan"). Guotai Junan"). or the fun or the < Performance Relative of the unfavorable. is or outlook fundamental or the company sector is Performance Relative of the neutral. is or outlook fundamental or the company sector is Performance Relative of the is or outlook fundamental favorable. or the company sector 5%is to Performance 15%; Relative of the is or outlook fundamental favorable. or the company sector Performance Relative Definition or the fundamental outlook of the unfavorable is . outlook fundamental or the sector Performance Relative th or Performance Relative of the is . vorable outlook fundamental fa or the sector Performance Relative Definition hs.

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Junan group of companies. Any opinions expressed in this report may differ or differ or report may this in expressed opinions Any companies. Junan group of - entral, Hong Kong. entral, 15%;

mentioned in this Research Report. Research in this mentioned .

mentioned in this Research Report. Research in mentioned this

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Company Report IMAX China Holdings IMAX中国 (01970 HK) 8 September 2016