IMAX Corporation (NYSE:IMAX), IMAX China Holding Inc. (HKSE: 1970) and Guangzhou JinYi Media Corporation (JinYi), one of the largest exhibitors in China, announced a full revenue share agreement for 40 new IMAX® theatres. The theatres will be added to new projects as well as existing JinYi Cinemas across China and brings the exhibitor's total IMAX footprint to 60.
The theatres will be added to a combination of Tier One to Tier Four cities throughout China and are expected to be installed at the end of this year through 2020 with a majority to be installed by 2018. The deal represents one of the largest IMAX signings in China.
JinYi Media Corporation is one of the largest exhibition companies in China, with 1,731 screens in 325 subsidiary and affiliated theaters across 21 provinces and four municipalities. The parties first signed an agreement in 2009 for four IMAX theatres and with today's deal, JinYi Media Corporation is now the third-largest IMAX partner in China and internationally. Under today's agreement, the exhibitor will bring IMAX to several new, untapped markets, such as the city of Huaihua, which is located in Hunan province and has a population of approximately 5 million as well as the city of Deyang with a population of approximately 4 million, which is located in the province of Sichuan. Guangzhou JinYi Media Corporation is the second full joint venture IMAX partner in China.
"We are delighted to further expand our partnership with JinYi, one of the largest exhibitors in China. Their sizeable commitment and continued confidence in IMAX to play such an integral part of their complexes is yet another testament to the strength and value of IMAX in China. Together, we will help meet the strong consumer demand for cinema-going in China where IMAX remains an affordable, yet differentiated luxury," said IMAX Corp. CEO, Richard L. Gelfond. "We have set a target of 1,000 theatres in China. With over 300 theatres open and - including this deal and a 10-theatre deal announced earlier this year - an additional 270 in backlog, we are just beginning to tap China's full potential, which is on track to overtake the US as the largest film market in the world by 2017."
"Driven by the dramatic growth in the Chinese exhibition market, we are embarking on an aggressive expansion of our circuit. Mall developers recognize the power of the IMAX brand to attract consumers and with IMAX as an anchor entertainment attraction, we were able to secure locations in our desired complexes," said Mr. Leo Li, CEO Guangzhou JinYi Media Corporation. "The IMAX slate of Hollywood and Chinese blockbuster titles coupled with its powerfully immersive format is beloved by moviegoers in China. IMAX is a key differentiator that we believe will not only strengthen the customer experience but also our business results."
About Guangzhou JinYi Media Corporation
Established in 2004, Guangzhou JinYi Media Corporation ('JinYi'), is a famous enterprise dedicated to cinema distribution and film exhibition. The company's main products include film screenings, film distribution in theaters, merchandizing and advertising services. Its subsidiary JinYi Cinema is one of the top five cinema franchises in China. Nowadays, JinYi manages at least 1,731 screens across 325 subsidiary and affiliated cinemas with more than 262,271 seats across 21 provinces and four municipalities.
About IMAX China
IMAX China is a subsidiary of IMAX Corporation, and is incorporated under the laws of Cayman Islands. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX's business throughout Greater China. IMAX China trades on the Hong Kong Stock Exchange under the stock code "HK.1970."
