This financial report focuses on non-GAAP financial indicators, such as adjusted EBITDA and free cash flow. It also reminds investors to pay attention to the risks and uncertainties of forward-looking statements. The company does not assume the obligation to update such statements and advises investors to exercise caution.

AMC Entertainment achieved significant financial growth in the second quarter of 2025, with a 25.6% increase in global moviegoers, a 35.6% increase in revenue, and a 391.4% surge in adjusted EBITDA, reaching $189.2 million. These results were driven by strong box office performances of multiple films and effective cost control measures by the company. It is expected that there will be more blockbuster films released in the fourth quarter of 2025, leading to a record-high annual box office total, with an increase of $5-9 billion compared to 2024.

The conversation focused on the optimistic expectations for the 2026 film market, especially strong growth in the first quarter expected due to the release of "Avatar: The Battle of Fire." AMC set multiple revenue records in the second quarter, including new highs in per capita spending and food and beverage revenue, while strengthening its financial position through debt restructuring, laying the foundation for future sustained growth.

The report showed that global box office reached a record high in the second quarter of 2025, with AMC achieving significantly increased free cash flow and adjusted EBITDA by improving single customer revenue and profit. Global box office revenue increased by 25.6% to 63 million admissions, with total revenue reaching $1.4 billion, including food and beverage revenue surpassing $500 million for the first time. Contribution margin per customer increased to $14.48, and adjusted EBITDA quadrupled to $1.892 billion. Both domestic and international markets set records, highlighting performance growth driven by innovation and high-quality movie-going experiences.

By closing underperforming theaters and opening new ones, AMC has achieved significant asset optimization. At the same time, through financial restructuring and capital operations, the company has strengthened its financial health, laying a solid foundation for the industry's recovery. It is expected that in the coming quarters, especially in the fourth quarter, there will be strong box office performances, further consolidating AMC's leading position in the movie industry.

AMC has launched a ticket strategy offering a 50% discount on Tuesdays and Wednesdays aimed at attracting more price-conscious customers. This discount is only available to members of its loyalty program, in order to incentivize new members to join and improve customer tracking and marketing efficiency. This, coupled with a price increase on non-discount days, has effectively raised AMC's average ticket price and ticket revenue, especially in the US market, surpassing some competitors in ticket revenue.

The dialogue detailed AMC Entertainment's various successful marketing initiatives, including the expansion of its loyalty program AMC Stubs' VIP tiers, as well as the strong growth of subscription services A-List and Limitless, particularly in attracting younger consumers. Additionally, it mentioned the success of AMC Investor Connect program targeting investors, and the brand impact of advertising campaigns with global celebrities like Nicole Kidman. These marketing strategies not only enhance the current viewer base but also lay a solid foundation for continued growth in future customer segments.

Reviewed the release events for Billie Eilish's album and the Eminem-led documentary "Stands" and the enthusiastic response among fans, looked ahead at future trends in film products, and introduced the AMC Go plan, aimed at seizing the potential of the recovering film market by providing a high-end movie-watching experience.

The theater plans to significantly increase the number of IMAX and Dolby Cinema screens, introduce laser projection technology, and expand the scale of XL brand cinemas, aiming to provide a better viewing experience. It is expected that by 2026, XL brand cinemas will reach 350, and over 55% of movie theaters in the United States will be equipped with laser projection systems.

The dialogue focuses on how AMC has improved customer satisfaction, increased capacity utilization, raised visit frequency, and raised prices by providing a high-end movie experience, thus driving long-term profit growth. AMC has achieved significant results in improving business efficiency and optimizing financial performance, especially in the post-pandemic market recovery period, surpassing its EBITDA levels before the pandemic. Faced with industry recovery, AMC has shown confidence by demonstrating strong financial performance through growth in Q4 and Q2, indicating bright future prospects.

Discussed the strategies of adjusting ticket prices and food and beverage prices in cinemas in the current economic environment, including attempts to attract customers through discounts, raise ticket prices, and increase food and beverage consumption. Analyzed how to effectively increase the average consumption of a single movie viewing without compromising customer experience, emphasizing the importance of promoting customer spending on non-movie days.

By adjusting the ticket pricing strategy to a 50% discount on Tuesdays, the theater successfully increased Tuesday's revenue and plans to extend this strategy to Wednesdays in order to boost Wednesday's attendance. At the same time, the theater validated consumers' willingness to pay for a premium viewing experience through the higher ticket prices at PLF theaters, which supported the theater's decision to raise prices. The introduction of laser projection technology further enhanced the quality of the viewing experience, bolstering the theater's confidence in ticket price adjustments.

By increasing menu variety, introducing themed drinks and offering a variety of flavor choices, the cinema has successfully attracted customers to visit the dining area before and after watching a movie, significantly increasing the purchase amount and consumption of each customer. At the same time, it has also increased overall customer engagement, effectively addressing the previous phenomenon of customers not making purchases after watching a movie.

The discussion has been had on collaborating with advertising companies to increase the advertising duration in cinemas in order to boost revenue. However, there is also the challenge of audiences being dissatisfied with excessive advertising. To strike a balance between the two, cinemas plan to reduce the playing time of some non-essential advertisements and marketing materials, while also adjusting the number of trailers, in hopes of enhancing the audience's viewing experience without impacting advertising revenue.

The dialogue discussed the transformation of the cinema industry from a large number of closures of old theaters to almost zero closures, emphasizing that the profitability of new cinemas far exceeds that of old cinemas. New cinemas have superior locations, modern designs, and significant economic benefits, while old cinemas suffer from poor locations and aging facilities leading to declining profits. In the future, the cinema industry may shift from net closures to net additions, especially by introducing high-quality cinema resources through mergers and acquisitions, potentially further enhancing overall profitability.

Discussed the potential tax benefits and depreciation allowances that large capital expenditure companies may receive in the future, pointing out that these benefits will mainly be evident in 2027 and beyond, rather than in the short term, emphasizing their positive impact on improving future cash flows.

The acquisition of Paramount by Skydance was discussed, and it is believed that this will drive more movie productions, especially high-quality works, helping to revive the cinema industry. With the founder having rich experience in the film industry and the new leadership team including a former chairman of Universal Studios, it is expected to have a profound impact on Paramount and benefit cinema exhibitions.

Discussed successful cases of AMC in the film distribution field, including collaborations with multiple world-class artists. Mentioned that AMC is exploring more distribution opportunities for non-concert films, utilizing excess capacity in theaters. At the same time, AMC is negotiating new projects with several artists, expected to be launched as early as 2026.

Companies are actively embracing AI technology and have achieved application results in multiple areas such as software development, marketing, and tax processing. In the future, they plan to further utilize AI to optimize pricing, film scheduling, and customer service, and explore investment in AI technology companies to gain a greater competitive advantage in the film and entertainment industry.

In the second quarter of 2025, the company delivered outstanding performance, with EBITDA increasing nearly fivefold, far exceeding market expectations. Compared to the fourth quarter of last year, revenue increased by 35% and EBITDA achieved fivefold growth. The company firmly believes that with the continued increase in industry revenue, the strong momentum will be sustained in every future quarter, demonstrating significant operational leverage. The management team is confident in future growth and expects the company to continue this growth trend starting in the fourth quarter of 2025.