By benefiting from the stable national economic growth and the prosperous Chinese movie market, China’s box office breaks record high year-on-year with the Chinese movie industry developing in its full swing. As at 3 December 2015, the box office revenue has achieved a breakthrough historic new high of RMB40 billion, representing a year-on-year growth of 47.4%. At present, China’s box office is second to the top globally. With the increase in per capita income and escalating consumption standards, it is expected that China’s domestic box office may exceed the North American market in next two years.

As one of the leading Chinese theater operators, in order to consolidate its industry leading advantage, the Company timely adjusted its business strategy. While maintaining its market shares in the first tier provinces and cities, the Company promotes more actively the construction of movie theaters in the second and third tier cities that have high domestic growth. The purpose is to expand its business expansion to more cities, broaden the business scope of the Company and reinforce the Group’s pipeline advantage.

By the end of 2015, the number of movie theaters operated by SMI in China will increase to 200, owning over 1,400 screens. Apart from vigorously expanding its theater network coverage nationwide, the Group accelerates projection equipment and screens upgrade in all its theaters, increases the investments in 3D screens and IMAX screens, and complement with our symbolic QSC audio systems and Harkness screens, it provides audience with top-quality viewing services and ensure their high-quality visual enjoyment.

Haerbin Beijing Tianjin Shanghai Hangzhou Shenzhen Chengdu Chongqing Guiyang Kunming