Huayi Brothers, Cinema Chains Sign New Agreement
Shanghai Securities News, 11/26/12
Chinese film and TV production firm Huayi Brothers (300027.SZ) has partnered with over 30 Chinese cinema operators, including Wanda, Xinyinglian Cinema, and Jinyi Zhujiang Cinemas, with a new agreement to share box office revenue from three Huayi films: 1942, 12 Shengxiao ("Chinese Zodiac"), and Xi You Jiang Mo Pian. Cinema operators will receive a 57% share for the first RMB 300 mln in box office revenue, 55% for revenue above RMB 300 mln, and 53% for revenue over RMB 800 mln. Shortly after the announcement, Tan Hong, GM of Stellar Mega Films, revealed on his personal microblog that cinema operators will receive a 57% revenue share for the first week of release of Wang De Shengyan ("Emperor's Feast"), followed by a 59% share the second week and a 61% share the third week.
The National Film Industry Development Fund Regulatory Commission has released four new policy statements declaring incentives for films that use new technology such as 3D and IMAX. Production studios will receive up to RMB 10 mln for films that exceed RMB 500 mln in box office receipts. Huayi Brothers' Painted Skin 2, which saw RMB 700 mln in revenue this year, is eligible to receive RMB 10 mln.
Keywords: National Film Industry Development Fund Regulatory Commission film production government subsidy film policy television Huayi Brothers revenue share 300027.SZ IMAX
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