IMAX China forecasts US$28m quarterly loss

Mainland theater systems builder IMAX China (1970) is poised to record a net loss of up to US$28 million (HK$217.03 million) for the first three months this year due to the closure of all theaters in the mainland and the drop in theater system installation due to the coronavirus pandemic.

The company had a net profit of US$11 million for the first quarter last year.

IMAX China said it recorded losses of box office revenue and other related costs as a result of the closure of all of the  700 cinemas, as well as a US$20 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 the allocation of capital including enabling it to pay dividends.

Shares of the company slid by 1.77 percent to HK$11.10 as of 2:40 pm.