Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2014 | |
Document and Entity Information | |
Entity Registrant Name | Bona Film Group Ltd |
Entity Central Index Key | 1504796 |
Document Type | 6-K |
Document Period End Date | 30-Sep-14 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $28,595 | $32,684 |
Restricted cash | 56,068 | 30,728 |
Accounts receivable, net of allowance for doubtful accounts of $930 and $973 as of December 31, 2013 and September 30, 2014, respectively | 116,861 | 39,409 |
Prepaid expenses and other current assets | 20,360 | 17,326 |
Amounts due from related parties | 1,416 | 510 |
Current deferred tax assets | 761 | 973 |
Inventories | 371 | 313 |
Total current assets | 224,432 | 121,943 |
Distribution rights | 6,554 | 6,554 |
Production costs | 182,534 | 142,245 |
Prepaid film costs | 4,400 | 4,406 |
Property and equipment, net | 68,230 | 63,679 |
Acquired intangible assets, net | 2,351 | 2,452 |
Non-current deferred tax assets | 442 | 510 |
Cost method investments | 1,478 | 1,479 |
Equity method investments | 36,096 | 26,278 |
Goodwill | 49,846 | 50,540 |
Long-term prepaid expenses | 40 | |
Total assets | 576,403 | 420,086 |
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to Bona Film Group Limited of $22,913 and $39,265 as of December 31, 2013 and September 30, 2014, respectively) | 41,385 | 24,540 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to Bona Film Group Limited of $29,639 and $37,890 as of December 31, 2013 and September 30, 2014, respectively) | 42,121 | 32,635 |
Amounts due to related parties (including amounts due to related parties of the consolidated variable interest entities without recourse to Bona Film Group Limited of $5,201 and $4,902 as of December 31, 2013 and September 30, 2014, respectively) | 5,586 | 5,886 |
Income tax payable (including income tax payable of the consolidated variable interest entities without recourse to Bona Film Group Limited of $6,460 and $57,951 as of December 31, 2013 and September 30, 2014, respectively) | 10,793 | 6,460 |
Bank borrowings (including bank borrowings of the consolidated variables interest entities without recourse to Bona Film Group Limited of $35,425 and $50,427 as of December 31, 2013 and September 30, 2014, respectively) | 87,787 | 60,704 |
Other borrowings (including other borrowings of the consolidated variable interest entities without recourse to Bona Film Group Limited of $4,126 and $5,402 as of December 31, 2013 and September 30, 2014, respectively) | 5,402 | 4,126 |
Current film participation financing liabilities with unrelated parties (including current film participation financing liabilities with unrelated parties of the consolidated variable interest entities without recourse to Bona Film Group Limited of $7,038 and $9,336 as of December 31, 2013 and September 30, 2014, respectively) | 15,006 | 7,117 |
Current film participation financing liabilities with a related party (including current film participations financing liabilities with a related party of the consolidated variable interest entities without recourse to Bona Film Group Limited of $36,705 and $94,434 as of December 31, 2013 and September 30, 2014, respectively) | 94,434 | 36,705 |
Total current liabilities | 302,514 | 178,173 |
Bank borrowings (including bank borrowings of the consolidated variable interest entities without recourse to Bona Film Group Limited of nil and $18,328 as of December 31, 2013 and September 30, 2014, respectively) | 53,940 | 20,000 |
Deferred income (including deferred income of the consolidated variable interest entities without recourse to Bona Film Group Limited of $873 and $836 as of December 31, 2013 and September 30, 2014, respectively) | 1,107 | 1,359 |
Non-current film participation financing liabilities with a related party (including current film participation financing liabilities with a related party of the consolidated variable interest entities without recourse to Bona Film Group Limited of $17,675 and Nil as of December 31, 2013 and September 30, 2014, respectively) | 17,675 | |
Non-current deferred tax liabilities (including non-current deferred tax liabilities of the consolidated variable interest entities without recourse to Bona Film Group Limited of $23 and Nil as of December 31, 2013 and September 30, 2014, respectively) | 23 | |
Total liabilities | 357,561 | 217,230 |
Commitments and contingencies (Note 20) | ||
Equity | ||
Bona Film Group Limited's ordinary shares ($0.0005 par value; 85,000,000 shares authorized, 31,402,346 and 30,160,235 shares issued and outstanding as of December 31, 2013 and 31,402,346 and 30,438,078 shares issued and outstanding as of September 30, 2014) | 15 | 15 |
Additional paid-in capital | 191,860 | 182,782 |
Statutory reserves | 3,534 | 3,534 |
Accumulated profit | 13,201 | 5,216 |
Accumulated other comprehensive income | 8,057 | 9,513 |
Total Bona Film Group Limited's equity | 216,667 | 201,060 |
Noncontrolling interests | 2,175 | 1,796 |
Total equity | 218,842 | 202,856 |
Total liabilities and equity | $576,403 | $420,086 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $973 | $930 |
Accounts payable | 41,385 | 24,540 |
Accrued expenses and other current liabilities | 42,121 | 32,635 |
Amounts due to related parties | 5,586 | 5,886 |
Income tax payable | 10,793 | 6,460 |
Bank borrowings | 87,787 | 60,704 |
Other borrowings | 5,402 | 4,126 |
Current film participation financing liabilities with unrelated parties | 15,006 | 7,117 |
Current film participation financing liabilities with related party | 94,434 | 36,705 |
Bank borrowings | 53,940 | 20,000 |
Deferred income | 1,107 | 1,359 |
Non-current film participation financing liabilities with related party | 17,675 | |
Non-current deferred tax liabilities | 23 | |
Bona Film Group Limited's ordinary shares, shares authorized | 85,000,000 | 85,000,000 |
Bona Film Group Limited's ordinary shares, shares issued | 31,402,346 | 31,402,346 |
Bona Film Group Limited's ordinary shares, shares outstanding | 30,438,078 | 30,160,235 |
Consolidated variable interest entities without recourse | ||
Accounts payable | 39,265 | 22,913 |
Accrued expenses and other current liabilities | 37,890 | 29,639 |
Amounts due to related parties | 4,902 | 5,201 |
Income tax payable | 57,951 | 6,460 |
Bank borrowings | 50,427 | 35,425 |
Other borrowings | 5,402 | 4,126 |
Current film participation financing liabilities with unrelated parties | 9,336 | 7,038 |
Current film participation financing liabilities with related party | 94,434 | 36,705 |
Bank borrowings | 18,328 | 0 |
Deferred income | 836 | 873 |
Non-current film participation financing liabilities with related party | 0 | 17,675 |
Non-current deferred tax liabilities | $0 | $23 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Net revenue | $201,504,000 | $106,574,000 |
Cost of revenue | 114,050,000 | 56,955,000 |
Gross profit | 87,454,000 | 49,619,000 |
Operating expenses: | ||
Film participation expenses | 11,856,000 | -537,000 |
Selling and marketing expenses | 20,530,000 | 10,231,000 |
General and administrative expenses | 45,047,000 | 36,323,000 |
Total operating expenses | 77,433,000 | 46,017,000 |
Equity in earning of equity method investment, net of tax | 3,328,000 | |
Government subsidies | 1,876,000 | 1,662,000 |
Operating income | 15,225,000 | 5,264,000 |
Other income (expense): | ||
Interest income from bank deposits | 904,000 | 97,000 |
Interest income from loan to a producer of TV series | 10,000 | |
Interest expenses | -1,198,000 | -1,333,000 |
Exchange gain (loss) | -673,000 | 983,000 |
Investment Income | 64,000 | |
Other income | 213,000 | 213,000 |
Income (loss) before income tax and equity in earnings of equity method investments, net of tax | 14,545,000 | 5,224,000 |
Provision for income taxes | 6,982,000 | 1,044,000 |
Equity in earnings of equity method investments, net of tax | -13,000 | |
Net income | 7,563,000 | 4,167,000 |
Less: Net loss attributable to the noncontrolling interests | -422,000 | -1,071,000 |
Net income attributable to Bona Film Group Limited | 7,985,000 | 5,238,000 |
Net income (loss) per ordinary share | ||
Basic (in dollars per share) | $0.26 | $0.18 |
Diluted (in dollars per share) | $0.25 | $0.17 |
Weighted average shares used in calculating net income (loss) per ordinary share | ||
Basic (in shares) | 30,334,730 | 29,791,387 |
Diluted (in shares) | 31,591,505 | 30,306,325 |
Share-based compensation expenses | ||
Share-based compensation | 7,189,000 | 2,786,000 |
General and administrative expenses | ||
Share-based compensation expenses | ||
Share-based compensation | $7,189,000 | $2,786,000 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $7,563 | $4,167 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | -1,458 | 1,839 |
Comprehensive income | 6,105 | 6,006 |
Less: comprehensive loss attributable to the noncontrolling interests | -424 | -1,059 |
Comprehensive income attributable to Bona Film Group Limited | $6,529 | $7,065 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total Bona Film Group Limited's equity | Ordinary shares | Additional paid-in capital | Statutory reserves | Accumulated profit | Accumulated other comprehensive income | Noncontrolling interests | Total |
In Thousands, except Share data, unless otherwise specified | ||||||||
Balance at Dec. 31, 2012 | $185,708 | $15 | $176,135 | $2,543 | $550 | $6,465 | $3,937 | $189,645 |
Balance (in shares) at Dec. 31, 2012 | 29,737,257 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Exercise of options | 1,848 | 1,848 | 1,848 | |||||
Exercise of options (in shares) | 349,147 | |||||||
Net income | 5,238 | 5,238 | -1,071 | 4,167 | ||||
Share-based compensation expenses | 2,786 | 2,786 | 2,786 | |||||
Foreign currency translation adjustments | 1,827 | 1,827 | 12 | 1,839 | ||||
Acquisition of noncontrolling interests (Note 19) | 339 | 339 | -1,065 | -726 | ||||
Capital contribution by a noncontrolling shareholder (Note 19) | 48 | 48 | ||||||
Balance at Sep. 30, 2013 | 197,746 | 15 | 181,108 | 2,543 | 5,788 | 8,292 | 1,861 | 199,607 |
Balance (in shares) at Sep. 30, 2013 | 30,086,404 | |||||||
Balance at Dec. 31, 2013 | 201,060 | 15 | 182,782 | 3,534 | 5,216 | 9,513 | 1,796 | 202,856 |
Balance (in shares) at Dec. 31, 2013 | 30,160,235 | 30,160,235 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Exercise of options | 1,889 | 1,889 | 1,889 | |||||
Exercise of options (in shares) | 277,843 | |||||||
Net income | 7,985 | 7,985 | -422 | 7,563 | ||||
Share-based compensation expenses | 7,189 | 7,189 | 7,189 | |||||
Foreign currency translation adjustments | -1,456 | -1,456 | -2 | -1,458 | ||||
Acquisition of noncontrolling interests (Note 19) | 803 | 803 | ||||||
Balance at Sep. 30, 2014 | $216,667 | $15 | $191,860 | $3,534 | $13,201 | $8,057 | $2,175 | $218,842 |
Balance (in shares) at Sep. 30, 2014 | 30,438,078 | 30,438,078 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ||
Net income | $7,563 | $4,167 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Equity in earnings of equity method investments, net of tax | -3,328 | 13 |
Loss on disposal of an equity method investment | -64 | |
Share-based compensation expenses | 7,189 | 2,786 |
Provision for bad debt | 1,740 | 205 |
Other income | -213 | -213 |
Depreciation and amortization | 4,113 | 4,241 |
Loss from disposal of property and equipment | 6 | 55 |
Amortization of distribution rights | 26,591 | 551 |
Amortization of production costs | 38,029 | 23,885 |
Impairment of production costs and distribution rights | 3,596 | 2,153 |
Changes in assets and liabilities: | ||
Accounts receivable | -77,730 | -8,476 |
Prepaid expenses and other current assets | -99 | 1,320 |
Increase (Decrease) in Prepaid Expense | 47 | |
Distribution rights | -26,815 | -9,857 |
Production costs | -82,523 | -52,119 |
Inventories | -62 | -74 |
Amounts due from related parties | 192 | 12 |
Accounts payable | 19,602 | -2,587 |
Deferred income | -25 | 355 |
Accrued expenses and other current liabilities | 8,378 | 3,083 |
Amounts due to related parties | -706 | 661 |
Income taxes payable | 4,606 | -392 |
Deferred income taxes | 44 | -78 |
Film participation financing liabilities | 7,044 | -780 |
Net cash used in operating activities | -62,919 | -31,089 |
Cash flows from investing activities: | ||
Acquisition of an equity method investee, net of cash acquired of nil and $1,599 as of December 31, 2013 and September 30, 2014, respectively | 1,599 | |
Purchase of property and equipment | -13,876 | -6,299 |
Purchase of equity method investments | -12,037 | -25,895 |
Profit distribution from an equity method investee | 4,549 | |
Loan to a producer of TV series | -1,217 | |
Dividends received from a cost method investee | 64 | |
Change in restricted cash | -25,699 | -15,433 |
Net cash used in investing activities | -46,617 | -47,627 |
Cash flows from financing activities: | ||
Proceeds from exercise of options | 1,850 | 1,111 |
Amount due to related parties and third parties | 472 | -880 |
Proceeds from bank borrowings | 96,077 | 55,184 |
Repayments of bank borrowings | -34,586 | -12,628 |
Proceeds from film participation with unrelated parties | 4,772 | |
Proceeds from film participation with a related party | 46,290 | 40,651 |
Repayments of film participation financing liabilities principal with unrelated parties | -814 | -6,304 |
Repayments of film participation financing liabilites with a related parties | -9,792 | |
Proceeds from other borrowings | 2,712 | 2,314 |
Repayments of other borrowings | -1,475 | -3,245 |
Capital contribution by a noncontrolling shareholder | 48 | |
Acquisition of noncontrolling interests | -726 | |
Net cash provided by financing activities | 105,506 | 75,525 |
Effect of foreign exchange rate changes | -59 | -235 |
Net (decrease) increase in cash | -4,089 | -3,426 |
Cash and cash equivalents, beginning of year | 32,684 | 23,228 |
Cash and cash equivalents, end of year | $28,595 | $19,802 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
CONSOLIDATED STATEMENT OF CASH FLOWS | ||
Acquisition of business, cash acquired | $1,599 | $0 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
BASIS OF PRESENTATION | 1.BASIS OF PRESENTATION |
The accompanying unaudited consolidated financial statements include the financial information of Bona Film Group Limited (the “Company”), its subsidiaries, variable interest entities (the “VIEs”) and VIEs’ subsidiaries (collectively, the “Group”). All intercompany balances and transactions have been eliminated in accordance with the rules and regulations of the Security and Exchange Commission and U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting. The results of operations for the nine months ended September 30, 2013 and 2014 are not necessarily indicative of the results of the full years. | |
The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements, accounting policies and financial notes thereto included in the Group’s audited consolidated financial statements for each of the three years ended December 31, 2013. In the opinion of the management, the accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented. The Group believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Group’s consolidated financial statements for each of the three years ended December 31, 2013. | |
The financial information as of December 31, 2013 presented in the unaudited interim consolidated financial statements is derived from the Company’s audited consolidated financial statements for the year ended December 31, 2013. | |
The Company uses the United States (“U.S.”) dollar as its reporting currency and functional currency. The financial records of the Company’s People’s Republic of China (“PRC”) subsidiaries, VIEs and VIEs’ subsidiaries are maintained in Renminbi (“RMB”), their functional currency and the currency of the PRC. The financial records of the Company’s subsidiaries and VIEs established in Hong Kong are maintained in their local currencies, Hong Kong Dollar. Their balance sheets are translated into U.S. dollars based on the exchange rate as of the balance sheet date. Their statements of operations are translated using an average exchange rate for the period. Translation adjustments are reflected in accumulated other comprehensive income in equity. | |
The RMB is not freely convertible into U.S. dollars or other currencies. All foreign exchange transactions involving RMB must take place through the People’s Bank of China or other institutions authorized to buy and sell foreign currencies. The exchange rates adopted for foreign exchange transactions involving RMB are the rates of exchange quoted by the People’s Bank of China. | |
No assets of the Company’s consolidated VIEs are collateral for such VIEs’ obligations. There are no restrictions on the use of the VIEs’ assets to settle the Company’s obligations. As of December 31, 2013 and September 30, 2014, respectively, there were $166,078 and $318,771 of liabilities of the Company’s consolidated VIEs for which creditors (or beneficial interest holders) did not have recourse to the general credit of the Company or its subsidiaries. | |
RECENTLY_ISSUED_ACCOUNTING_PRO
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Recently issued accounting pronouncements | 2.RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS |
In June 2014, the FASB issued an accounting standards update relating to the accounting for certain share-based awards. The accounting update states that, when the terms of an award provide that a performance target could be achieved after the requisite service period, the performance target should be treated as a performance condition that affects vesting and should not be reflected in the grant-date fair value. Companies are permitted to apply the guidance either prospectively to all awards granted or modified after the effective date or retrospectively to awards outstanding as of the beginning of the earliest annual period presented. The guidance is effective for the Company’s fiscal year beginning January 1, 2016, with early adoption permitted. The Company adopted the new guidance upon issuance of the accounting standards update, which did not have an impact on its consolidated financial statements as the Company’s existing accounting policy was already consistent with this guidance. | |
In May 2014, the FASB issued an accounting standards update to provide companies with a single model for use in accounting for revenue from contracts with customers. Once it becomes effective, the new guidance will replace most existing revenue recognition guidance in U.S. GAAP, including industry-specific guidance. The core principle of the model is to recognize revenue when control of goods or services transfers to the customer and in an amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services that have transferred. Under current U.S. GAAP, the Company recognizes revenue when the risks and rewards of ownership transfer to the customer. In addition, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized and the related cash flows. The guidance is effective for the Company’s fiscal year beginning January 1, 2017, including interim periods within that fiscal year. Early adoption is not permitted. Companies are permitted to either apply the guidance retrospectively to all prior periods presented or, alternatively, apply the guidance in the year of adoption with the cumulative effect recognized at the date of initial application (referred to as the modified retrospective approach). The Company is in the process of determining the method of adoption, as well as evaluating the impact that the new standard will have on its consolidated financial statements. | |
In July 2013, the FASB issued an accounting standards update relating to the presentation of unrecognized tax benefits. The accounting update requires companies to present a deferred tax asset net of related unrecognized tax benefits if there is a net operating loss or other tax carryforwards that would apply in settlement of the uncertain tax position. To the extent that an uncertain tax position would not be settled through a reduction of a net operating loss or other tax carryforwards, the unrecognized tax benefit will be presented as a liability. The guidance is effective for the Company’s fiscal year beginning January 1, 2014, with early adoption permitted. The Company adopted the new guidance effective January 1, 2014. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |
PREPAID_EXPENSES_AND_OTHER_CUR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3.PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||||
Prepaid expenses and other current assets consist of the following at: | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Prepaid film costs on behalf of other investors (i) | 2,980 | 5,807 | ||||
Rental deposits and prepaid rental expenses | 3,268 | 3,869 | ||||
Loans and interest receivables from producers of TV series and films (ii) | 3,425 | 2,980 | ||||
Amounts due from third parties (iii) | 2,366 | 1,887 | ||||
Prepaid film costs (iv) | 2,327 | 1,319 | ||||
Deposits paid for acquisition of property and equipment | 195 | 1,115 | ||||
Promotion and print costs paid on behalf of film producers (v) | 953 | 1,000 | ||||
Advances to employees | 725 | 701 | ||||
Interests receivable | 63 | 623 | ||||
Prepaid advertising expenses | 454 | 262 | ||||
Prepaid business tax | 4 | 4 | ||||
Other prepaid expenses | 566 | 793 | ||||
Total | 17,326 | 20,360 | ||||
(i) | Prepaid film costs on behalf of other investors represent amounts paid for film production which will be reimbursed by other co-investors. | |||||
(ii) | Loans and interest receivables from producers of TV series and films represent the Group’s investments in TV series and films, which have fixed rate of returns ranged from 7.2% to 20%. The balance was net of allowance for doubtful accounts of $148 and $1,685 as of December 31, 2013 and September 30, 2014, respectively. | |||||
(iii) | Amounts due from third parties mainly represent amount paid for film production which will be reimbursed by film producers. | |||||
(iv) | Prepaid film costs represent amounts paid to secure the service of individuals to be the directors or actors or actresses of films over the next year. Prepaid film costs will be included in the production costs and amortized on a film-by-film basis upon the completion of related films. | |||||
(v) | Promotion and print costs paid on behalf of film producers represent amounts paid for promotion and print costs which will be reimbursed by film producers. The balance was net of allowance for doubtful accounts of $5 and nil as of December 31, 2013 and September 30, 2014, respectively. | |||||
DISTRIBUTION_RIGHTS
DISTRIBUTION RIGHTS | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
DISTRIBUTION RIGHTS. | ||||||
DISTRIBUTION RIGHTS | 4.DISTRIBUTION RIGHTS | |||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Released | 2,244 | 2,031 | ||||
In production and not released | 4,310 | 4,523 | ||||
Total | 6,554 | 6,554 | ||||
The portion of the costs of the completed films that are expected to be amortized during the twelve months after September 30, 2014 is $1,196, and the Group expects to amortize 100% of such costs within three years from September 30, 2014. | ||||||
The Group evaluates its distribution rights on a title-by-title basis to determine whether the unamortized capitalized costs of any titles have a fair value that is less than its carrying value at least annually or whenever events or changes in circumstances indicate that the carrying amount of the distribution rights may be impaired. The Group determined the unamortized distribution rights as of September 30, 2013 were impaired by $982, for which no amortization expenses were recorded since no revenue had been generated by the end of September 30, 2013. The Group determined the unamortized distribution rights as of September 30, 2014 were impaired by $194, due to the lower-than-expected revenue performance of certain film. Key assumptions used in the fair value measurement consisted of a discount rate of 15% and estimated remaining cash flows over a period of 10 years from a title’s initial release. A change in the discount rate of 1.0% would change the impairment loss measurement by $11 in the nine months ended September 30, 2014. | ||||||
PRODUCTION_COSTS
PRODUCTION COSTS | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
PRODUCTION COSTS | ||||||
PRODUCTION COSTS | 5.PRODUCTION COSTS | |||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Completed films | 25,925 | 24,651 | ||||
Films in production and not released | 116,320 | 157,883 | ||||
Total | 142,245 | 182,534 | ||||
The portion of the costs of the completed films that are expected to be amortized during the twelve months after September 30, 2014 is $10,640, and the Group expects to amortize 86% of such costs within three years from September 30, 2014. | ||||||
The Group evaluates its production costs on a title-by-title basis to determine whether the unamortized capitalized costs of any titles have a fair value that is less than its carrying value at least annually or whenever events or changes in circumstances indicate that the carrying amount of the production costs may be impaired. As a result of lower-than-expected revenue performance of certain films and TV series, the Group determined the unamortized production costs were impaired by $1,171 and $3,402 as of September 30, 2013 and 2014, respectively, including $1,861 of the full impairment of an unreleased film as of September 30, 2014, as the film was not been set for production within three years from the time of the first capitalized transaction. Key assumptions used in the fair value measurement were discount rates ranging from 15% to 16% and estimated cash flows over a period of 10 years from a title’s initial release. A change in the discount rate of 1.0% would change the impairment loss measurement by $72 in the nine months ended September 30, 2014. | ||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
PROPERTY AND EQUIPMENT, NET | 6.PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, net, consists of the following at: | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Film projection equipment | 27,166 | 27,852 | ||||
Furniture and office equipment | 1,954 | 2,155 | ||||
Transportation equipment | 853 | 841 | ||||
Leasehold improvements | 45,431 | 46,634 | ||||
75,404 | 77,482 | |||||
Less: accumulated depreciation | (13,963 | ) | (17,799 | ) | ||
61,441 | 59,683 | |||||
Construction in progress | 2,238 | 8,547 | ||||
Property and equipment, net | 63,679 | 68,230 | ||||
Depreciation expense for the nine months ended September 30, 2013 and 2014 was $3,671 and $4,019, respectively. | ||||||
COST_METHOD_INVESTMENTS
COST METHOD INVESTMENTS | 9 Months Ended |
Sep. 30, 2014 | |
COST METHOD INVESTMENTS | |
COST METHOD INVESTMENTS | 7.COST METHOD INVESTMENTS |
In April 2008, the Group invested $29 for 16.67% of equity interest in Wuhan Lianzhong Digital Film Technology Co., Ltd. (“Wuhan Lianzhong”), a company established in the PRC that is mainly engaged in digital film production and distribution. | |
In October 2011, the Group invested $63 for 10% of equity interest in Zhongda Helian Marketing Consulting Co., Ltd. (“Zhongda Helian”), a company established in the PRC that is mainly engaged in economic and trade advisory services. In June 2014, the Group received $64 cash dividend income from Zhongda Helian. | |
In January 2012, the Group invested $1,200 for 15.67% of equity interest in China Lion Entertainment Limited (“China Lion”), a company established in the United States that is mainly engaged in film distribution in North America. In October 2013, China Lion increased its share capital, and the Group invested additional $180, resulting in a 15% of equity interests in China Lion. | |
These investments are accounted for using the cost method of accounting as the Group has no significant influence over the operation of Wuhan Lianzhong, Zhongda Helian or China Lion. There was no impairment of the cost method investment recognized for the nine months ended September 30, 2013 and September 30, 2014, respectively. | |
EQUITY_METHOD_INVESTMENTS
EQUITY METHOD INVESTMENTS | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
EQUITY METHOD INVESTMENTS | |||||||||||
EQUITY METHOD INVESTMENTS | 8.EQUITY METHOD INVESTMENTS | ||||||||||
The Group’s equity method investees include: | |||||||||||
Amount | Legal | Date | |||||||||
Investee | invested | ownership | invested | Business | |||||||
Wuhu Bona Film Investment Management Co., Ltd. (“Wuhu Bona”)(i)) | $ | 571 | 70 | % | July 2013 | Fund management | |||||
Wuhu Bona Jinyu Film Investment Center, L.P. (“Bona Film Investment Fund”)(i) | $ | 32,037 | 30 | % | September 2013 | Film investment | |||||
Sanya Beauty Crown Bona International Cinema Co., Ltd. (“Sanya Cinema”)(ii) | $ | 833 | 51 | % | August 2013 | Cinema | |||||
(i) | In July 2013, the Group, together with two other investors, established Wuhu Bona, a limited liability company, and the Group holds 70% equity interest in Wuhu Bona. As a 70% equity owner of Wuhu Bona, the Group is entitled to nominate three out of five board members of Wuhu Bona. However, any significant board resolutions related to operating and financing activities of Wuhu Bona need two-third board members’ approval. The Group concludes that it does not have control over Wuhu Bona, and has accounted for the investment in Wuhu Bona using the equity method of accounting. | ||||||||||
In September 2013, the Group launched Bona Film Investment Fund, a RMB1.0 billion fund that is expected to finance the development and production of the Group’s film and television projects for the next two years. The Group holds approximately 29.9% of the equity interest amounted to RMB300.0 million in Bona Film Investment Fund, representing the commitment of investment rights in current and future projects. Wuhu Bona invested RMB1.0 million representing a 0.1% equity interest in Bona Film Investment Fund. Wuhu Bona is the only general partner of Bona Film Investment Fund, which has the exclusive rights of operating Bona Film Investment Fund. Therefore, Wuhu Bona has consolidated the Bona Film Investment Fund. | |||||||||||
As of September 30, 2014, the Group, Wuhu Bona and outside investors invested Bona Film Investment Fund’s equity of RMB197.0 million, RMB0.66 million and RMB462.4 million, respectively, in which RMB449.5 million was invested to the development and production of films and TV projects of the Group. Bona Film Investment Fund received RMB92.0 million investment income from the Group and distributed RMB92.0 million to all investors, among which, the Group received a RMB28.0 million profit distribution and accounted for this as a deduction of its equity method investment. | |||||||||||
(ii) | In August 2013, the Group, together with another investor, established Sanya Cinema to operate a cinema in Sanya City in the PRC, in which the Group holds 51% equity interests. As the significant operating and financing activities of Sanya Cinema needed all shareholders’ approvals at that time, the Group concluded that it did not maintain control over Sanya Cinema, and accounted for this investment using equity method of accounting. In March 2014, Sanya Cinema revised its Article of Association. According to the revised Article of Association (‘‘A&A’’), the shareholders’ resolutions related to significant operating and financing activities of Sanya Cinema need over 50% shareholders’ approval. When Sanya Cinema completed the registration of revised A&A with the local Administration for Industry & Commerce on March 31, 2014, the Group achieved control over Sanya Cinema and accordingly consolidated the financial statement of Sanya Cinema. | ||||||||||
The Group’s share of the equity method investees’ profit or loss in the nine months ended September 30, 2013 and 2014 are as below: | |||||||||||
Wuhu | Bona Film | Sanya | |||||||||
Bona | Investment Fund | Cinema | Total | ||||||||
Balance as of January 1, 2013 | — | — | — | — | |||||||
Investments | 571 | 24,505 | 833 | 25,909 | |||||||
Share of (loss) profit for the nine months ended September 30, 2013 | (19 | ) | 6 | — | (13 | ) | |||||
Exchange differences | 1 | 5 | 3 | 9 | |||||||
Balance as of September 30, 2013 | 553 | 24,516 | 836 | 25,905 | |||||||
Balance as of January 1, 2014 | 564 | 24,872 | 842 | 26,278 | |||||||
Investments | — | 12,086 | — | 12,086 | |||||||
Share of profit for the nine months ended September 30, 2014 | 365 | 2,962 | 1 | 3,328 | |||||||
Acquisition of an equity method investee | — | — | (820 | ) | (820 | ) | |||||
Profit distribution | — | (4,554 | ) | — | (4,554 | ) | |||||
Exchange differences | (6 | ) | (193 | ) | (23 | ) | (222 | ) | |||
Balance as of September 30, 2014 | 923 | 35,173 | — | 36,096 | |||||||
ACQUIRED_INTANGIBLE_ASSETS_NET
ACQUIRED INTANGIBLE ASSETS, NET | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | ||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | 9.ACQUIRED INTANGIBLE ASSETS, NET | |||||||||||||||||
Acquired intangible assets, net, consist of the following: | ||||||||||||||||||
December 31, 2013 | September 30, 2014 | |||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||
carrying | Accumulated | Exchange | carrying | carrying | Accumulated | Exchange | carrying | |||||||||||
amount | amortization | difference | amount | amount | amortization | difference | amount | |||||||||||
Acquired intangible assets with definite lives | ||||||||||||||||||
Membership | 59 | (59 | ) | — | — | 59 | (59 | ) | — | — | ||||||||
Favorable lease | 2,460 | (2,432 | ) | 67 | 95 | 2,460 | (2,526 | ) | 66 | — | ||||||||
Total intangible assets with definite lives | 2,519 | (2,491 | ) | 67 | 95 | 2,519 | (2,585 | ) | 66 | — | ||||||||
Acquired intangible assets with indefinite lives | ||||||||||||||||||
Movie theater licenses | 2,328 | — | 29 | 2,357 | 2,328 | — | 23 | 2,351 | ||||||||||
Total | 4,847 | (2,491 | ) | 96 | 2,452 | 4,847 | (2,585 | ) | 89 | 2,351 | ||||||||
The amortization expenses for the nine months ended September 30, 2013 and September 30, 2014 were $570 and $94, respectively. No further amortization is expected as all definite life intangibles were fully amortized as of September 30, 2014. The Group has had no impairment losses recorded on acquired intangible assets. | ||||||||||||||||||
GOODWILL
GOODWILL | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
GOODWILL | ||||||||||
GOODWILL | 10.GOODWILL | |||||||||
Changes in the carrying amount of goodwill by reporting units, which are the same as reportable segments, for the year ended December 31, 2013 and nine months ended September 30, 2014 were as follows: | ||||||||||
Film | Movie | Talent | ||||||||
production | theaters | agency | Total | |||||||
Balance as of January 1, 2013 | 35 | 48,932 | 143 | 49,110 | ||||||
Exchange differences | — | 1,426 | 4 | 1,430 | ||||||
Goodwill carrying amount at December 31, 2013 | 35 | 50,358 | 147 | 50,540 | ||||||
Exchange differences | — | (692 | ) | (2 | ) | (694 | ) | |||
Balance as of September 30, 2014 | 35 | 49,666 | 145 | 49,846 | ||||||
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 11.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||
Accrued expenses and other current liabilities consist of the following at: | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Advance from customers (i) | 12,620 | 12,121 | ||||
Payables for rental expenses | 8,237 | 10,894 | ||||
Business taxes and other tax payable | 3,678 | 7,197 | ||||
Payable of advertising fees | 2,772 | 6,847 | ||||
Other accounts payable to third parties | 1,592 | 1,222 | ||||
Accrued payroll, welfare and other social expenses | 1,897 | 1,202 | ||||
Payable of distribution and promotion fees | 536 | 1,140 | ||||
Accrued professional fees | 774 | 888 | ||||
Deposits payable | 421 | 529 | ||||
Other current liabilities | 108 | 81 | ||||
Total | 32,635 | 42,121 | ||||
Advance from customers represents upfront payments received from customers for licensing fees. | ||||||
BANK_BORROWINGS
BANK BORROWINGS (Bank borrowings) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Bank borrowings | ||||||
BANK BORROWINGS | ||||||
BANK BORROWINGS | 12.BANK BORROWINGS | |||||
Bank borrowings consist of the following at: | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company’s subsidiary, Bona International Film Group Limited, due on November 20, 2015 (i) | 20,027 | 20,038 | ||||
Loan payable to an overseas commercial bank, principal of $9,659 and $15,612 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 3.25% per annum, guaranteed by $10,163 (equivalent of RMB62 million) and $16,292 (equivalent of RMB100 million) of the Company’s restricted cash as of December 31, 2013 and September 30, 2014 respectively, due date extended from September 10, 2014 to October 10, 2015 | 9,664 | 15,640 | ||||
Loan payable to an overseas commercial bank, principal of $15,563 and $15,447 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 2.95% per annum over one month LIBOR, guaranteed by $18,156 (equivalent of RMB111 million) of the Company’s restricted cash, due date extended from August 8, 2014 to August 28, 2015 | 15,588 | 15,447 | ||||
Loan payable to a PRC commercial bank, principal of $13,034 (equivalent of RMB80 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, the Company’s VIE’s subsidiaries, Zhejiang Bona Film and Television Production Co., Ltd. (“Zhejiang Bona”), Tianjin Bona Culture Media Co., Ltd. (“Tianjin Bona”) and Beijing Bona International Cineplex Investment and Management Co., Ltd. (“Beijing Bona Cineplex”), due on March 27, 2015 | — | 13,060 | ||||
Loan payable to an overseas commercial bank, principal of $11,048, bearing interest at 3.25% per annum over one month LIBOR, guaranteed by $11,730 (equivalent of RMB72 million) of the Company’s restricted cash, due on April 24, 2015 | — | 11,061 | ||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Loan payable to an overseas commercial bank, principal of $10,760, bearing interest at 2.7% per annum over one month LIBOR, guaranteed by $11,404 (equivalent of RMB70 million) of the Company’s restricted cash, due on March 10, 2015 | — | 10,785 | ||||
Loan payable to a PRC commercial bank, principal of $7,168 (equivalent of RMB44 million), bearing interest at 7.20% per annum, guaranteed by Zhejiang Bona, due on July 28, 2015 | — | 7,183 | ||||
Loan payable to a PRC commercial bank, principal of $7,006 (equivalent of RMB43 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 6, 2016 | — | 7,021 | ||||
Loan payable to a PRC commercial bank, principal of $6,517 (equivalent of RMB40 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on June 20, 2015 | — | 6,528 | ||||
Loan payable to a PRC commercial bank, principal of $5,702 (equivalent of RMB35 million), bearing interest at 6% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, due on April 24, 2015 | — | 5,714 | ||||
Loan payable to a PRC commercial bank, principal of $5,056 (equivalent of RMB31 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona, Tianjin Bona and Beijing Bona Cineplex, due on June 29, 2015 | — | 5,061 | ||||
Loan payable to a PRC commercial bank, principal of $4,399 (equivalent of RMB27 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 25, 2016 | — | 4,408 | ||||
Loan payable to a PRC commercial bank, principal of $3,259 (equivalent of RMB20 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona,Tianjin Bona and Beijing Bona Cineplex, due on September 1, 2015 | — | 3,265 | ||||
Loan payable to a PRC commercial bank, principal of $3,258 (equivalent of RMB20 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and the Company’s VIE, Bona Film Group Co., Ltd. (PRC) (“Bona Film”), due on September 26, 2016 | — | 3,259 | ||||
Loan payable to a PRC commercial bank, principal of $2,770 (equivalent of RMB17 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 30, 2016 | — | 2,776 | ||||
Loan payable to a PRC commercial bank, principal of $2,444 (equivalent of RMB15 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on September 18, 2015 | — | 2,448 | ||||
Loan payable to a PRC commercial bank, principal of $1,629 (equivalent of RMB10 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on August 28, 2015 | — | 1,632 | ||||
Loan payable to a PRC commercial bank, principal of $1,592 (equivalent of RMB9.77 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on September 26, 2015 | — | 1,592 | ||||
Loan payable to a PRC commercial bank, principal of $1,303 (equivalent of RMB8 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 29, 2015 | — | 1,306 | ||||
Loan payable to a PRC commercial bank, principal of $896 (equivalent of RMB5.5million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 11, 2016 | — | 899 | ||||
Loan payable to a PRC commercial bank, principal of $815 (equivalent of RMB5 million), bearing interest at 6% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, due on October 24, 2014 | — | 816 | ||||
Loan payable to a PRC commercial bank, principal of $652 (equivalent of RMB4 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona, Tianjin Bona and Beijing Bona Cineplex, due on July 17, 2015 | — | 653 | ||||
Loan payable to a PRC commercial bank, principal of $562 (equivalent of RMB3.45million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 30, 2015 | — | 563 | ||||
Loan payable to a PRC commercial bank, principal of $326 (equivalent of RMB2 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 29, 2015 | — | 327 | ||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Loan payable to a PRC commercial bank, principal of $244 (equivalent of RMB1.5million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 11, 2015 | — | 245 | ||||
Loan payable to a PRC commercial bank, principal of $8,142 (equivalent of RMB50 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in May 2014 | 8,278 | — | ||||
Loan payable to a PRC commercial bank, principal of $8,008 (equivalent of RMB50 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, repaid in May 2014 | 8,275 | — | ||||
Loan payable to a PRC commercial bank, principal of $6,499 (equivalent of RMB40 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in June 2014 | 6,622 | — | ||||
Loan payable to a PRC commercial bank, principal of $3,592 (equivalent of RMB22 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in September 2014 | 3,642 | — | ||||
Loan payable to a PRC commercial bank, principal of $3,265 (equivalent of RMB20 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in August 2014 | 3,311 | — | ||||
Loan payable to a PRC commercial bank, principal of $1,796 (equivalent of RMB11 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in June 2014 | 1,821 | — | ||||
Loan payable to a PRC commercial bank, principal of $1,796 (equivalent of RMB11 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in July 2014 | 1,821 | — | ||||
Loan payable to a PRC commercial bank, principal of $1,625 (equivalent of RMB10 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in January 2014 | 1,655 | — | ||||
Total | 80,704 | 141,727 | ||||
Including: | ||||||
Current | 60,704 | 87,787 | ||||
Non-current | 20,000 | 53,940 | ||||
Total | 80,704 | 141,727 | ||||
(i) | The Group agreed to certain financial covenants (among other covenants), including to maintain minimum cash assets of $5.0 million at all times during the term of the loan, as well as to maintain a ratio of maximum total funded debt to earnings before interest, tax, depreciation and amortization (the “EBITDA ratio”) no greater than 3.8:1 (the “EBITDA Ratio Covenant”) and a ratio of total liabilities to tangible net worth of no more than 2:1, in each case calculated using average quarterly figures based on the consolidated balance sheets of the Group for the most recent four quarters. In August 2013, East West Bank modified the EBITDA ratio as not to exceed 4.75:1 for the second quarter of 2013, 4.25:1 for the third quarter of 2013 and 3.0:1 for the fourth quarter of 2013 and beyond. Any failure to comply with such financial covenants (among other things) would constitute an event of default under the agreement. If the Group fails to timely remedy a curable event of default within the applicable cure period or obtain a waiver, the bank would have the right to accelerate the loan repayment and charge a default rate of interest. The Group was in compliance with all the covenants for the first, second and third quarters of 2014. The Group does not expect any default on the covenants within the 12 months following September 30, 2014. As a result, the loans were classified as long-term liability as of September 30, 2014. | |||||
Interest expenses accrued for loans were $1,603 and $4,000 for nine months ended September 30, 2013 and 2014, respectively, in which $580 and $2,802 were capitalized into production costs for the nine months ended September 30, 2013 and 2014, respectively. | ||||||
The Group expects to repay the borrowings of $1,050, $122,349, $18,328, nil and nil for the three months ending December 31, 2014, the years ending December 31, 2015, 2016, 2017 and 2018, respectively. | ||||||
OTHER_BORROWINGS
OTHER BORROWINGS (Film financing agreement) | 9 Months Ended |
Sep. 30, 2014 | |
Film financing agreement | |
OTHER BORROWINGS | |
OTHER BORROWINGS | 13.OTHER BORROWINGS |
The Group entered into two film financing agreements with other investors in March 2012 and May 2012. Under the agreements, the investors paid a total amount of $3,001 (equivalent of RMB19 million) to invest in the production of a TV series. The Group guaranteed a return of 15% on the investment. One of the borrowings, at principle amount of $1,579 (equivalent of RMB10 million) and the related interest was repaid in May 2013. The remaining borrowing, a principle amount of $1,422 (equivalent of RMB9 million) and the related interest was repaid in February 2014. | |
In August 2013, the Group entered into a film financing agreement with a third party investor. Under the agreement, the investor invested $2,314 (equivalent of RMB14.2 million) in September 2013 and invested $256 (equivalent of RMB1.58 million) in August 2014. The Group guaranteed a return of 8% on the investment. The loan and related interest will be due in January 2015. | |
In April 2014, the Group entered into a film financing agreement with a third party investor. Under the agreement, the investor invested $2,456 (equivalent of RMB15.3 million) as the first payment and the Group guaranteed a return of 10% on the investment. The loan and related interest will be due in June 2015. | |
FILM_PARTICIPATION_FINANCING_L
FILM PARTICIPATION FINANCING LIABILITIES | 9 Months Ended |
Sep. 30, 2014 | |
FILM PARTICIPATION FINANCING LIABILITIES | |
FILM PARTICIPATION FINANCING LIABILITIES | 14.FILM PARTICIPATION FINANCING LIABILITIES |
Film participation financing liabilities with unrelated parties | |
In the film production financing arrangements, the initial participation amounts provided by unrelated party investors for a fixed percentage of the film’s worldwide net income of the invested film from the initial exhibition of the film in the mainland China are reflected as a film participation financing liability. A film’s worldwide net income is defined as the film’s distribution revenue, less promotion and print costs, and distribution fees. The difference between the ultimate film participation expenses expected to be paid to participants and the amount provided by participants is amortized as a charge to or a reduction of film participation expenses under the individual-film-forecast-computation method. Film participation financing liabilities with unrelated parties were $7,117 and $15,006, respectively, as of December 31, 2013 and September 30, 2014. | |
Film participation financing liabilities with a related party | |
Film participation financing liabilities with a related party represent amounts received from Bona Film Investment Fund to finance the development and production of film and TV projects of the Group over the next year. Pursuant to a cooperation framework agreement entered in September 2013 by and among Bona Film Investment Fund, the Group and other investors, Bona Film Investment Fund authorizes the Group to invest its capital in all types of film and television production projects. The Group is to invest in these projects upon receipt of payment from Bona Film Investment Fund, and be in charge of the filming, production and distribution of these projects. The Group solely owns the perpetual copyright and all the intellectual property of these projects globally. During the term of Bona Film Investment Fund, proceeds from a project globally, as calculated based on a percentage of Bona Film Investment Fund’s investment over total investments, belong to Bona Film Investment Fund. Film participation financing liabilities with a related party were $54,380 and $94,434, respectively, as of December 31, 2013 and September 30, 2014. | |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
INCOME TAXES | |
Income Tax Disclosure [Text Block] | 15.INCOME TAXES |
The Group’s effective income tax rate (“ETR”) was 48% for the nine months ended September 30, 2014 compared to 20% for the nine months ended September 30, 2013. The ETR differed from the statutory tax rate of 25% and the increase in the effective income tax rate over the prior year’s comparable period and the statutory rate is primarily due to the non-deductible share-based compensation expenses granted to an officer in April 2014. | |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2014 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 16.FAIR VALUE MEASUREMENTS |
The Group measured its distribution rights and production costs at fair value on a nonrecurring basis when it wrote down the carrying amounts of the distribution rights and production costs to their fair value as a result of the impairment assessments (Note 5 and Note 6). The fair value was determined using models with significant unobservable inputs (Level 3 inputs), primarily the management projection of the future cash flows and the discount rate. | |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
SHARE-BASED COMPENSATION | 17.SHARE-BASED COMPENSATION | |||||||||
Share options | ||||||||||
A summary of option activity, including grants to both employees and non-employees, under the 2009 Plan and 2010 Plan as of September 30, 2013 and 2014, and the changes during the nine months then ended is presented below: | ||||||||||
Weighted | ||||||||||
Weighted | average | Aggregate | ||||||||
Number of | average | remaining | intrinsic | |||||||
Options | share options | exercise price | contractual life | value | ||||||
Outstanding as of January 1, 2013 | 3,478,713 | 8.17 | 7.9 | 7,188 | ||||||
Granted | 110,000 | 7.76 | 9.8 | |||||||
Exercised | (349,147 | ) | 5.29 | 6.7 | ||||||
Expired | (34,157 | ) | 10.67 | 8.4 | ||||||
Forfeited | (109,521 | ) | 10.26 | 8.3 | ||||||
Outstanding as of September 30, 2013 | 3,095,888 | 7.68 | 7.9 | 9,017 | ||||||
Outstanding as of January 1, 2014 | 3,014,086 | 7.72 | 7.7 | 11,349 | ||||||
Granted | — | — | — | — | ||||||
Exercised | (277,343 | ) | 6.8 | 6.4 | ||||||
Expired | (1,520 | ) | 7.91 | 6.9 | ||||||
Forfeited | (37,158 | ) | 7.7 | 6.8 | ||||||
Outstanding as of September 30, 2014 | 2,698,065 | 7.81 | 6.7 | 11,357 | ||||||
Exercisable as of September 30, 2014 | 2,383,196 | 7.8 | 6.6 | 9,947 | ||||||
Expected to vest as of September 30, 2014 | 224,135 | 7.76 | 7.4 | 955 | ||||||
The Group recognizes compensation expenses on the share options using the straight-line attribution method. Total share-based compensation expenses recognized were $2,786 and $2,617 for the nine months ended September 30, 2013 and 2014, respectively. | ||||||||||
As of September 30, 2014, there was $1,644 of unrecognized compensation expenses related to non-vested share options granted under the 2009 Plan and 2010 Plan. That expense is expected to be recognized over a weighted-average period of 0.40 year. | ||||||||||
Restricted shares | ||||||||||
On April 22, 2014, under the 2010 Plan, the Group granted 1,750,000 restricted shares to one officer. 100 shares vest on each of the first 23 calendar months following the vesting commence on May 1, 2014 and the remaining 1,747,700 shares shall vest in the 24th calendar month following the vesting commencement date. The contract life is 10 years from the date of grant. The forfeiture rate of zero was estimated for the restricted shares granted to the officer. | ||||||||||
The following table summarizes information regarding the restricted shares granted: | ||||||||||
Weighted | ||||||||||
average | Aggregate | |||||||||
Number of | grant date | intrinsic | ||||||||
Restricted shares | restricted shares | fair value | value | |||||||
Outstanding as of January 1, 2014 | — | — | — | |||||||
Granted | 1,750,000 | 12.54 | — | |||||||
Vested | (500 | ) | 12.54 | — | ||||||
Forfeited | — | — | — | |||||||
Outstanding as of September 30, 2014 | 1,749,500 | 12.54 | — | |||||||
Vested and expect to vest as of September 30, 2014 | 1,750,000 | — | ||||||||
The Group recognizes compensation expenses on the restricted shares using the straight-line attribution method. Total share-based compensation expenses recognized were nil and $4,572 for the nine months ended September 30, 2013 and 2014, respectively. | ||||||||||
As of September 30, 2014, there was $17,373 of unrecognized compensation expenses related to non-vested restricted shares granted under the 2010 Plan. That expense is expected to be recognized over a weighted-average period of 1.58 years. | ||||||||||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
NET INCOME (LOSS) PER SHARE | ||||||
NET INCOME PER SHARE | 18.NET INCOME PER SHARE | |||||
The calculation of the net income per share is as follows: | ||||||
Nine months ended September 30 | ||||||
2013 | 2014 | |||||
Numerator used in basic and diluted net income per share: | ||||||
Net income attributable to Bona Film Group Limited | 5,238 | 7,985 | ||||
Shares (denominator): | ||||||
Weighted average ordinary shares outstanding used in computing basic net income per ordinary share | 29,791,387 | 30,334,730 | ||||
Employee share options and restricted shares (treasury effect) | 514,938 | 1,256,775 | ||||
Weighted average ordinary shares outstanding used in computing diluted net income per ordinary share | 30,306,325 | 31,591,505 | ||||
Net income per ordinary share-basic | 0.18 | 0.26 | ||||
Net income per ordinary share-diluted | 0.17 | 0.25 | ||||
The Group had securities outstanding which could potentially dilute basic net income per share in the future, but were excluded from the computation of diluted net income per share as their effects would have been anti-dilutive. Such securities consisted of 3,095,889 and 4,447,565 share options and restricted shares outstanding as of September 30, 2013 and 2014, respectively. | ||||||
NONCONTROLLING_INTEREST
NONCONTROLLING INTEREST | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
NONCONTROLLING INTEREST | ||||||||||||||||||||
NONCONTROLLING INTEREST | 19.NONCONTROLLING INTEREST | |||||||||||||||||||
Distribution | ||||||||||||||||||||
Bona | Workshop | Cinema | Xi’an | Shanghai | Mango | Tianjin | Sanya | |||||||||||||
Guoqiang | (BVI&HK) | Popular | Huitong | Cinema | Cinema | (Nongken&Jin’ao) | Cinema | Total | ||||||||||||
Balance as of January 1, 2013 | — | 641 | (352 | ) | 345 | 2,057 | 1,092 | 154 | — | 3,937 | ||||||||||
Capital contribution (i) | 48 | — | — | — | — | — | — | — | 48 | |||||||||||
Acquisition of noncontrolling interests (ii) | — | — | — | (307 | ) | — | (758 | ) | — | — | (1,065 | ) | ||||||||
Foreign currency translation adjustment | 1 | (1 | ) | 1 | 4 | 3 | 7 | (3 | ) | — | 12 | |||||||||
Net (loss) income | (9 | ) | (419 | ) | (6 | ) | (42 | ) | 75 | 78 | (748 | ) | — | (1,071 | ) | |||||
Balance as of September 30, 2013 | 40 | 221 | (357 | ) | — | 2,135 | 419 | (597 | ) | — | 1,861 | |||||||||
Balance as of January 1, 2014 | 35 | 384 | (357 | ) | — | 2,147 | 394 | (807 | ) | — | 1,796 | |||||||||
Acquisition of an equity method investee (Note 8) | — | — | — | — | — | — | — | 803 | 803 | |||||||||||
Foreign currency translation adjustment | (1 | ) | — | — | — | (2 | ) | (4 | ) | 10 | (5 | ) | (2 | ) | ||||||
Net (loss) income | (16 | ) | 9 | (5 | ) | — | 68 | 74 | (506 | ) | (46 | ) | (422 | ) | ||||||
Balance as of September 30, 2014 | 18 | 393 | (362 | ) | — | 2,213 | 464 | (1,303 | ) | 752 | 2,175 | |||||||||
(i) | On March 6, 2013, the Group set up a subsidiary of its VIE, Bona Guoqiang Tianjin Film and Culture Media Co., Ltd. (“Bona Guoqiang”), of which 70% equity interest was owned by the Group and 30% was owned by a third-party shareholder. | |||||||||||||||||||
(ii) | On January, 2013, the Group acquired 34% equity interest of Changsha Mango Bona Cineplex Management Co., Ltd. (“Mango Cinema”), which is a Company’s VIE’s subsidiary, with a total cash consideration of $328 (equivalent to RMB2.04 million) from a noncontrolling shareholder. This was accounted for as an equity transaction with a reduction of noncontrolling interest by $758 and an increase in additional paid-in capital by $430. | |||||||||||||||||||
On May 17, 2013, the Group acquired the remaining 49% interest in Xi’an Huitong Bona Film Culure Media Co., Ltd. (“Xi’an Huitong”), which is a Company’s VIE’s subsidiary, with a total cash consideration of $398 (equivalent to RMB2.45 million) from a noncontrolling shareholder. After the acquisition, it became a 100% consolidated entity of the Group. This was accounted for as an equity transaction with a reduction of noncontrolling interest by $307 and a decrease in additional paid-in capital by $92. | ||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2014 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 20.COMMITMENTS AND CONTINGENCIES |
The Group is a party in potential claims arising in the ordinary course of business. As of September 30, 2014, the Group was a party to eleven legal proceedings in the PRC as the defendant or co-defendant, nine of which had been concluded. Of these concluded legal proceedings, the Group lost two and seven were withdrawn. The settlements paid in respect of each of the nine concluded legal proceedings, which ranged from nil to approximately RMB0.3 million, had been either paid or accrued for as of September 30, 2014. Based on the information currently available, the Group was able to estimate the outcome of one pending lawsuit, which has total claim against the Group of RMB7.6 million. The Group is unable to reasonably estimate the possible losses related to the claim of RMB4.6 million associated with the lawsuit, and the Group accrued the remaining liabilities of RMB3.0 million as of September 30, 2014. For the other pending lawsuit, which has total claim against the Group of RMB2.6 million, the Group is unable to reasonably estimate the outcome of the lawsuits and also the possible losses. Therefore, no accrual for contingency loss was recorded as of September 30, 2014. | |
RELATED_PARTY_BALANCES_AND_TRA
RELATED PARTY BALANCES AND TRANSACTIONS | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||
RELATED PARTY BALANCES AND TRANSACTIONS | 21.RELATED PARTY BALANCES AND TRANSACTIONS | |||||
Name | Relationship with the Group | |||||
Mr. Dong Yu | Chairman, CEO and principal shareholder | |||||
Mr. Zhong Jiang | Independent Director | |||||
Hubei Film Distribution and Exhibition Co., Ltd. | Noncontrolling shareholder | |||||
(“Hubei Film Distribution”) | ||||||
Wuhan Lianzhong | Cost method investee | |||||
Zhongda Helian | Cost method investee | |||||
Ms. Xiang Li | Noncontrolling shareholder | |||||
Hunan Xiaoxiang Cineplex Investment Management Co., Ltd. | Noncontrolling shareholder | |||||
(“Hunan Xiaoxiang”) | ||||||
Film Workshop Co., Ltd. (“Film Workshop”) | A company majority-owned by a consultant and a former director | |||||
Mr. Xiaojian Xu | Noncontrolling shareholder | |||||
Tianjin Nongken Group Real Estate Development Co., Ltd. | Noncontrolling shareholder | |||||
(“Nongken Real Estate”) | ||||||
Tianjin Nongken Group Culture Investment Co., Ltd. | A company majority-owned by a noncontrolling shareholder | |||||
(“Nongken Culture”) | ||||||
Tianjin Nongken Group Co., Ltd. (“Nongken Group”) | A company as a shareholder of a noncontrolling shareholder | |||||
Sanya Cinema | Equity method investee | |||||
Wuhu Bona | Equity method investee | |||||
Bona Film Investment Fund | Equity method investee | |||||
Mr. Guoqiang Lu | Noncontrolling shareholder | |||||
Beijing Xinliliang Television Culture Co., Ltd (“Beijing Xinliliang”) | A company owned by a noncontrolling shareholder | |||||
Beijing Shui Shang Quan Jing Cineplex Construction | A company owned by a shareholder’s related party | |||||
Consultation Co., Ltd. (“Shui Shang Quan Jing”) | ||||||
We distribution Ltd. (“We Distribution”) | A company majority-owned by a noncontrolling shareholder | |||||
As well as being the Group’s Chairman and CEO, Mr Dong Yu is the Group’s founder and therefore has substantial influence over the Group’s business, including decisions regarding mergers, consolidations and the sale of all or substantially all of the Group’s assets, election of directors, declaration of dividends and other significant corporate actions. Mr. Dong Yu also provided personal guarantees in order to enable the Group to procure certain bank borrowings for the nine months ended September 30, 2013 and 2014, respectively. (See Note 12.) | ||||||
Balances due from the related parties consist of the following at: | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Amounts due from Shui Shang Quan Jing (i) | — | 1,100 | ||||
Amounts due from We Distribution (ii) | 295 | 256 | ||||
Amounts due from Nongken Group (iii) | 55 | 49 | ||||
Amounts due from Wuhu Bona (iv) | 156 | 11 | ||||
Amounts due from Sanya Cinema (v) | 3 | — | ||||
Amounts due from Nongken Real Estate | 1 | — | ||||
510 | 1,416 | |||||
(i) | Shui Shang Quan Jing acts as an agent which is responsible for certain cinemas’ leasehold improvement projects of the Group. The amounts represent the advances relating to these projects made by the Group to Shui Shang Quan Jing. The Group expects to complete these projects within the next twelve months. | |||||
(ii) | The amounts represent receivables from We Distribution to support its operation. | |||||
(iii) | The amounts represent the receivables of the theater rental fees from Nongken Group. | |||||
(iv) | The amounts represent the receivables of consulting services fees from Wuhu Bona. | |||||
(v) | The amounts represent the receivables of upfront expenses paid to Sanya Cinema. | |||||
All the amounts due from related parties are unsecured and non-interest bearing. | ||||||
In addition to the film participation financing liabilities with a related party, Bona Film Investment Fund, described in Note 14, other balances due to related parties consist of the following at: | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Amounts due to Nongken Real Estate (i) | 2,105 | 2,555 | ||||
Amounts due to Nongken Culture (ii) | 1,541 | 1,579 | ||||
Amounts due to Film Workshop (iii) | 685 | 695 | ||||
Amounts due to Hubei Film Distribution (iv) | 463 | 456 | ||||
Amounts due to Hunan Xiaoxiang (iv) | 248 | 245 | ||||
Amounts due to Beijing Xinliliang (v) | 57 | 56 | ||||
Amounts due to Wuhan Lianzhong (vi) | 784 | — | ||||
Amounts due to Mr. Guoqiang Lu (vii) | 3 | — | ||||
5,886 | 5,586 | |||||
(i) | The amounts represent payables for loans obtained from Nongken Real Estate. | |||||
(ii) | The amounts represent payables to Nongken Culture for rental expenses. | |||||
(iii) | The amounts represent payables for film production services provided by Film Workshop. | |||||
(iv) | The amounts mainly represent loans from the noncontrolling shareholders to support the operations of two cinemas of the Group. | |||||
(v) | The amounts represent payables for film production services provided by Beijing Xinliliang. | |||||
(vi) | The amounts represent payables for film projection equipment purchased from Wuhan Lianzhong. | |||||
(vii) | The amounts represent reimbursements payable to Mr. Guoqiang Lu for expenses incurred for Bona Guoqiang. | |||||
All the amounts due to related parties are unsecured and non-interest bearing. | ||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
SEGMENT INFORMATION | ||||||||||||||
SEGMENT INFORMATION | 22.SEGMENT INFORMATION | |||||||||||||
The Group’s chief operating decision maker (“CODM”) is the Chief Executive Officer who reviews the results of four operating segments when making decisions about allocating resources and assessing performance. The segments are film distribution, film investment and production, movie theater, and talent agency. | ||||||||||||||
The film distribution segment generates revenue from external customers. Its revenue comprises the Group’s share of movie theater box office sales for the Group’s distribution services and, to the extent the Group has distribution rights outside the PRC, the revenue the Group derives from those arrangements. | ||||||||||||||
Its cost of revenue includes: | ||||||||||||||
-1 | the amortization of the cost of acquiring the distribution right and the participation right; and | |||||||||||||
-2 | the amount that the Group remits to the producers when they are entitled to share the box office sales with the Group based on the distribution arrangement. In the case where the Group produces the film, this amount includes any amount paid by the distribution entities to producing entities within the Group. | |||||||||||||
The film investment and production segment generates revenue both from external customers and, through inter-segment transactions, from the Group’s own distribution entities. | ||||||||||||||
The film investment and production segment generates revenue from external customers where the Group invests in a film but does not act as the principal distributor. For films in which the Group acquires all or part of the copyright, these include revenue from the sale of distribution rights and licensing fees to third-party distributors. For films in which the Group does not acquire any copyright, these include revenue from the Group’s share of the net profit from distribution agreements with third-party producers. | ||||||||||||||
Revenue from internal customers comprises revenue received from the distribution entities within the Group who distributes the film. | ||||||||||||||
Its cost of revenue includes the amortization of production costs. | ||||||||||||||
The movie theater segment generates admissions and concession revenue at the box offices from external customers, and other revenue which primarily consist of screen advertising revenue. Its cost of revenue mainly includes film rental costs. The talent agency segment generates revenue from external customers for its talent agency related business. | ||||||||||||||
The profitability measure employed by the Group and its CODM for making decisions about allocating resources to segments and assessing segment performance is gross profit less film participation expenses. Segments follow the same accounting policies as those described in Note 2 included in the Group’s Form 20-F for the year ended December 31, 2013. | ||||||||||||||
The Group’s CODM does not assign assets to these segments. Currently, it is not practical to show assets by reportable segments. | ||||||||||||||
The following table presents selected financial information relating to the Group’s segments: | ||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||
Film | ||||||||||||||
Film | investment | Movie | Talent | Intersegment | ||||||||||
distribution | and production | theater | agency | elimination | Consolidated | |||||||||
Revenue from external customers | 47,768 | 12,227 | 46,093 | 486 | — | 106,574 | ||||||||
Intersegment revenue | 1,179 | 25,372 | — | — | (26,551 | ) | — | |||||||
Cost of revenue | (34,760 | ) | (29,136 | ) | (19,610 | ) | — | 26,551 | (56,955 | ) | ||||
Film participation expenses | — | 537 | — | — | — | 537 | ||||||||
Segment profit | 14,187 | 9,000 | 26,483 | 486 | — | 50,156 | ||||||||
For the nine months ended September 30, 2014 | ||||||||||||||
Film | ||||||||||||||
Film | investment | Movie | Talent | Intersegment | ||||||||||
distribution | and production | theater | agency | elimination | Consolidated | |||||||||
Revenue from external customers | 141,580 | 491 | 58,892 | 541 | — | 201,504 | ||||||||
Intersegment revenue | 2,941 | 47,267 | — | — | (50,208 | ) | — | |||||||
Cost of revenue | (97,263 | ) | (42,551 | ) | (24,419 | ) | (25 | ) | 50,208 | (114,050 | ) | |||
Film participation expenses | — | (11,856 | ) | — | — | — | (11,856 | ) | ||||||
Equity in earnings of equity method investment, net of tax | — | 3,328 | — | — | — | 3,328 | ||||||||
Segment profit | 47,258 | (3,321 | ) | 34,473 | 516 | — | 78,926 | |||||||
The following table presents selected financial information relating to the movie theater segment: | ||||||||||||||
Nine months ended September 30 | ||||||||||||||
2013 | 2014 | |||||||||||||
Admissions | 38,409 | 49,330 | ||||||||||||
Concessions | 4,573 | 5,610 | ||||||||||||
Advertising | 1,406 | 1,991 | ||||||||||||
Others | 1,705 | 1,961 | ||||||||||||
Total revenue from movie theater segment | 46,093 | 58,892 | ||||||||||||
Reconciliation from consolidated segment profit to consolidated financial statements: | ||||||||||||||
Nine months ended September 30 | ||||||||||||||
2013 | 2014 | |||||||||||||
Consolidated segment profit | 50,156 | 78,926 | ||||||||||||
Selling and marketing expenses | (10,231 | ) | (20,530 | ) | ||||||||||
General and administrative expenses | (36,323 | ) | (45,047 | ) | ||||||||||
Government subsidies | 1,662 | 1,876 | ||||||||||||
Net interest and exchange loss | (253 | ) | (967 | ) | ||||||||||
Interest income from loan to a producer of TV series | — | 10 | ||||||||||||
Other income | 213 | 277 | ||||||||||||
Income before income tax and equity in earnings of equity method investments, net of tax | 5,224 | 14,545 | ||||||||||||
Geographical information | ||||||||||||||
The Group operates in the PRC and all of the Group’s long lived assets are located in the PRC. | ||||||||||||||
Revenue, classified by the major geographic areas in which the Group’s customers are located (based on the addresses of the customers who contracted with the Group), were as follows: | ||||||||||||||
Nine months ended September 30 | ||||||||||||||
2013 | 2014 | |||||||||||||
Revenue from the PRC | 101,123 | 197,323 | ||||||||||||
Revenue from countries other than the PRC | 5,451 | 4,181 | ||||||||||||
Total | 106,574 | 201,504 | ||||||||||||
PREPAID_EXPENSES_AND_OTHER_CUR1
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||
Schedule of components of prepaid expenses and other current assets | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Prepaid film costs on behalf of other investors (i) | 2,980 | 5,807 | ||||
Rental deposits and prepaid rental expenses | 3,268 | 3,869 | ||||
Loans and interest receivables from producers of TV series and films (ii) | 3,425 | 2,980 | ||||
Amounts due from third parties (iii) | 2,366 | 1,887 | ||||
Prepaid film costs (iv) | 2,327 | 1,319 | ||||
Deposits paid for acquisition of property and equipment | 195 | 1,115 | ||||
Promotion and print costs paid on behalf of film producers (v) | 953 | 1,000 | ||||
Advances to employees | 725 | 701 | ||||
Interests receivable | 63 | 623 | ||||
Prepaid advertising expenses | 454 | 262 | ||||
Prepaid business tax | 4 | 4 | ||||
Other prepaid expenses | 566 | 793 | ||||
Total | 17,326 | 20,360 | ||||
(i) | Prepaid film costs on behalf of other investors represent amounts paid for film production which will be reimbursed by other co-investors. | |||||
(ii) | Loans and interest receivables from producers of TV series and films represent the Group’s investments in TV series and films, which have fixed rate of returns ranged from 7.2% to 20%. The balance was net of allowance for doubtful accounts of $148 and $1,685 as of December 31, 2013 and September 30, 2014, respectively. | |||||
(iii) | Amounts due from third parties mainly represent amount paid for film production which will be reimbursed by film producers. | |||||
(iv) | Prepaid film costs represent amounts paid to secure the service of individuals to be the directors or actors or actresses of films over the next year. Prepaid film costs will be included in the production costs and amortized on a film-by-film basis upon the completion of related films. | |||||
(v) | Promotion and print costs paid on behalf of film producers represent amounts paid for promotion and print costs which will be reimbursed by film producers. The balance was net of allowance for doubtful accounts of $5 and nil as of December 31, 2013 and September 30, 2014, respectively. | |||||
DISTRIBUTION_RIGHTS_Tables
DISTRIBUTION RIGHTS (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
DISTRIBUTION RIGHTS. | ||||||
Schedule of distribution rights | December 31, | September 30, | ||||
2013 | 2014 | |||||
Released | 2,244 | 2,031 | ||||
In production and not released | 4,310 | 4,523 | ||||
Total | 6,554 | 6,554 | ||||
PRODUCTION_COSTS_Tables
PRODUCTION COSTS (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
PRODUCTION COSTS | ||||||
Schedule of film production costs | December 31, | September 30, | ||||
2013 | 2014 | |||||
Completed films | 25,925 | 24,651 | ||||
Films in production and not released | 116,320 | 157,883 | ||||
Total | 142,245 | 182,534 | ||||
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Schedule of components of property and equipment, net | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Film projection equipment | 27,166 | 27,852 | ||||
Furniture and office equipment | 1,954 | 2,155 | ||||
Transportation equipment | 853 | 841 | ||||
Leasehold improvements | 45,431 | 46,634 | ||||
75,404 | 77,482 | |||||
Less: accumulated depreciation | (13,963 | ) | (17,799 | ) | ||
61,441 | 59,683 | |||||
Construction in progress | 2,238 | 8,547 | ||||
Property and equipment, net | 63,679 | 68,230 | ||||
EQUITY_METHOD_INVESTMENTS_Tabl
EQUITY METHOD INVESTMENTS (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
EQUITY METHOD INVESTMENTS | |||||||||||
Schedule of the Group's equity method investee | Amount | Legal | Date | ||||||||
Investee | invested | ownership | invested | Business | |||||||
Wuhu Bona Film Investment Management Co., Ltd. (“Wuhu Bona”)(i)) | $ | 571 | 70 | % | July 2013 | Fund management | |||||
Wuhu Bona Jinyu Film Investment Center, L.P. (“Bona Film Investment Fund”)(i) | $ | 32,037 | 30 | % | September 2013 | Film investment | |||||
Sanya Beauty Crown Bona International Cinema Co., Ltd. (“Sanya Cinema”)(ii) | $ | 833 | 51 | % | August 2013 | Cinema | |||||
(i) | In July 2013, the Group, together with two other investors, established Wuhu Bona, a limited liability company, and the Group holds 70% equity interest in Wuhu Bona. As a 70% equity owner of Wuhu Bona, the Group is entitled to nominate three out of five board members of Wuhu Bona. However, any significant board resolutions related to operating and financing activities of Wuhu Bona need two-third board members’ approval. The Group concludes that it does not have control over Wuhu Bona, and has accounted for the investment in Wuhu Bona using the equity method of accounting. | ||||||||||
In September 2013, the Group launched Bona Film Investment Fund, a RMB1.0 billion fund that is expected to finance the development and production of the Group’s film and television projects for the next two years. The Group holds approximately 29.9% of the equity interest amounted to RMB300.0 million in Bona Film Investment Fund, representing the commitment of investment rights in current and future projects. Wuhu Bona invested RMB1.0 million representing a 0.1% equity interest in Bona Film Investment Fund. Wuhu Bona is the only general partner of Bona Film Investment Fund, which has the exclusive rights of operating Bona Film Investment Fund. Therefore, Wuhu Bona has consolidated the Bona Film Investment Fund. | |||||||||||
As of September 30, 2014, the Group, Wuhu Bona and outside investors invested Bona Film Investment Fund’s equity of RMB197.0 million, RMB0.66 million and RMB462.4 million, respectively, in which RMB449.5 million was invested to the development and production of films and TV projects of the Group. Bona Film Investment Fund received RMB92.0 million investment income from the Group and distributed RMB92.0 million to all investors, among which, the Group received a RMB28.0 million profit distribution and accounted for this as a deduction of its equity method investment. | |||||||||||
(ii) | In August 2013, the Group, together with another investor, established Sanya Cinema to operate a cinema in Sanya City in the PRC, in which the Group holds 51% equity interests. As the significant operating and financing activities of Sanya Cinema needed all shareholders’ approvals at that time, the Group concluded that it did not maintain control over Sanya Cinema, and accounted for this investment using equity method of accounting. In March 2014, Sanya Cinema revised its Article of Association. According to the revised Article of Association (‘‘A&A’’), the shareholders’ resolutions related to significant operating and financing activities of Sanya Cinema need over 50% shareholders’ approval. When Sanya Cinema completed the registration of revised A&A with the local Administration for Industry & Commerce on March 31, 2014, the Group achieved control over Sanya Cinema and accordingly consolidated the financial information of Sanya Cinema. | ||||||||||
Schedule of the Group's share of the equity method investees' profit or loss | |||||||||||
Wuhu | Bona Film | Sanya | |||||||||
Bona | Investment Fund | Cinema | Total | ||||||||
Balance as of January 1, 2013 | — | — | — | — | |||||||
Investments | 571 | 24,505 | 833 | 25,909 | |||||||
Share of (loss) profit for the nine months ended September 30, 2013 | (19 | ) | 6 | — | (13 | ) | |||||
Exchange differences | 1 | 5 | 3 | 9 | |||||||
Balance as of September 30, 2013 | 553 | 24,516 | 836 | 25,905 | |||||||
Balance as of January 1, 2014 | 564 | 24,872 | 842 | 26,278 | |||||||
Investments | — | 12,086 | — | 12,086 | |||||||
Share of profit for the nine months ended September 30, 2014 | 365 | 2,962 | 1 | 3,328 | |||||||
Acquisition of an equity method investee | — | — | (820 | ) | (820 | ) | |||||
Profit distribution | — | (4,554 | ) | — | (4,554 | ) | |||||
Exchange differences | (6 | ) | (193 | ) | (23 | ) | (222 | ) | |||
Balance as of September 30, 2014 | 923 | 35,173 | — | 36,096 | |||||||
ACQUIRED_INTANGIBLE_ASSETS_NET1
ACQUIRED INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | ||||||||||||||||||
Schedule of components of acquired intangible assets, net | ||||||||||||||||||
December 31, 2013 | September 30, 2014 | |||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||
carrying | Accumulated | Exchange | carrying | carrying | Accumulated | Exchange | carrying | |||||||||||
amount | amortization | difference | amount | amount | amortization | difference | amount | |||||||||||
Acquired intangible assets with definite lives | ||||||||||||||||||
Membership | 59 | (59 | ) | — | — | 59 | (59 | ) | — | — | ||||||||
Favorable lease | 2,460 | (2,432 | ) | 67 | 95 | 2,460 | (2,526 | ) | 66 | — | ||||||||
Total intangible assets with definite lives | 2,519 | (2,491 | ) | 67 | 95 | 2,519 | (2,585 | ) | 66 | — | ||||||||
Acquired intangible assets with indefinite lives | ||||||||||||||||||
Movie theater licenses | 2,328 | — | 29 | 2,357 | 2,328 | — | 23 | 2,351 | ||||||||||
Total | 4,847 | (2,491 | ) | 96 | 2,452 | 4,847 | (2,585 | ) | 89 | 2,351 | ||||||||
GOODWILL_Tables
GOODWILL (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
GOODWILL | ||||||||||
Schedule of carrying amount of goodwill | Film | Movie | Talent | |||||||
production | theaters | agency | Total | |||||||
Balance as of January 1, 2013 | 35 | 48,932 | 143 | 49,110 | ||||||
Exchange differences | — | 1,426 | 4 | 1,430 | ||||||
Goodwill carrying amount at December 31, 2013 | 35 | 50,358 | 147 | 50,540 | ||||||
Exchange differences | — | (692 | ) | (2 | ) | (694 | ) | |||
Balance as of September 30, 2014 | 35 | 49,666 | 145 | 49,846 | ||||||
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||
Schedule of components of accrued expenses and other current liabilities | December 31, | September 30, | ||||
2013 | 2014 | |||||
Advance from customers (i) | 12,620 | 12,121 | ||||
Payables for rental expenses | 8,237 | 10,894 | ||||
Business taxes and other tax payable | 3,678 | 7,197 | ||||
Payable of advertising fees | 2,772 | 6,847 | ||||
Other accounts payable to third parties | 1,592 | 1,222 | ||||
Accrued payroll, welfare and other social expenses | 1,897 | 1,202 | ||||
Payable of distribution and promotion fees | 536 | 1,140 | ||||
Accrued professional fees | 774 | 888 | ||||
Deposits payable | 421 | 529 | ||||
Other current liabilities | 108 | 81 | ||||
Total | 32,635 | 42,121 | ||||
Advance from customers represents upfront payments received from customers for licensing fees. | ||||||
BANK_BORROWINGS_Tables
BANK BORROWINGS (Tables) (Bank borrowings) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Bank borrowings | ||||||
BANK BORROWINGS | ||||||
Schedule of bank borrowings | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company’s subsidiary, Bona International Film Group Limited, due on November 20, 2015 (i) | 20,027 | 20,038 | ||||
Loan payable to an overseas commercial bank, principal of $9,659 and $15,612 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 3.25% per annum, guaranteed by $10,163 (equivalent of RMB62 million) and $16,292 (equivalent of RMB100 million) of the Company’s restricted cash as of December 31, 2013 and September 30, 2014 respectively, due date extended from September 10, 2014 to October 10, 2015 | 9,664 | 15,640 | ||||
Loan payable to an overseas commercial bank, principal of $15,563 and $15,447 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 2.95% per annum over one month LIBOR, guaranteed by $18,156 (equivalent of RMB111 million) of the Company’s restricted cash, due date extended from August 8, 2014 to August 28, 2015 | 15,588 | 15,447 | ||||
Loan payable to a PRC commercial bank, principal of $13,034 (equivalent of RMB80 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, the Company’s VIE’s subsidiaries, Zhejiang Bona Film and Television Production Co., Ltd. (“Zhejiang Bona”), Tianjin Bona Culture Media Co., Ltd. (“Tianjin Bona”) and Beijing Bona International Cineplex Investment and Management Co., Ltd. (“Beijing Bona Cineplex”), due on March 27, 2015 | — | 13,060 | ||||
Loan payable to an overseas commercial bank, principal of $11,048, bearing interest at 3.25% per annum over one month LIBOR, guaranteed by $11,730 (equivalent of RMB72 million) of the Company’s restricted cash, due on April 24, 2015 | — | 11,061 | ||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Loan payable to an overseas commercial bank, principal of $10,760, bearing interest at 2.7% per annum over one month LIBOR, guaranteed by $11,404 (equivalent of RMB70 million) of the Company’s restricted cash, due on March 10, 2015 | — | 10,785 | ||||
Loan payable to a PRC commercial bank, principal of $7,168 (equivalent of RMB44 million), bearing interest at 7.20% per annum, guaranteed by Zhejiang Bona, due on July 28, 2015 | — | 7,183 | ||||
Loan payable to a PRC commercial bank, principal of $7,006 (equivalent of RMB43 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 6, 2016 | — | 7,021 | ||||
Loan payable to a PRC commercial bank, principal of $6,517 (equivalent of RMB40 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on June 20, 2015 | — | 6,528 | ||||
Loan payable to a PRC commercial bank, principal of $5,702 (equivalent of RMB35 million), bearing interest at 6% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, due on April 24, 2015 | — | 5,714 | ||||
Loan payable to a PRC commercial bank, principal of $5,056 (equivalent of RMB31 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona, Tianjin Bona and Beijing Bona Cineplex, due on June 29, 2015 | — | 5,061 | ||||
Loan payable to a PRC commercial bank, principal of $4,399 (equivalent of RMB27 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 25, 2016 | — | 4,408 | ||||
Loan payable to a PRC commercial bank, principal of $3,259 (equivalent of RMB20 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona,Tianjin Bona and Beijing Bona Cineplex, due on September 1, 2015 | — | 3,265 | ||||
Loan payable to a PRC commercial bank, principal of $3,258 (equivalent of RMB20 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and the Company’s VIE, Bona Film Group Co., Ltd. (PRC) (“Bona Film”), due on September 26, 2016 | — | 3,259 | ||||
Loan payable to a PRC commercial bank, principal of $2,770 (equivalent of RMB17 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 30, 2016 | — | 2,776 | ||||
Loan payable to a PRC commercial bank, principal of $2,444 (equivalent of RMB15 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on September 18, 2015 | — | 2,448 | ||||
Loan payable to a PRC commercial bank, principal of $1,629 (equivalent of RMB10 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on August 28, 2015 | — | 1,632 | ||||
Loan payable to a PRC commercial bank, principal of $1,592 (equivalent of RMB9.77 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on September 26, 2015 | — | 1,592 | ||||
Loan payable to a PRC commercial bank, principal of $1,303 (equivalent of RMB8 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 29, 2015 | — | 1,306 | ||||
Loan payable to a PRC commercial bank, principal of $896 (equivalent of RMB5.5million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 11, 2016 | — | 899 | ||||
Loan payable to a PRC commercial bank, principal of $815 (equivalent of RMB5 million), bearing interest at 6% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, due on October 24, 2014 | — | 816 | ||||
Loan payable to a PRC commercial bank, principal of $652 (equivalent of RMB4 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona, Tianjin Bona and Beijing Bona Cineplex, due on July 17, 2015 | — | 653 | ||||
Loan payable to a PRC commercial bank, principal of $562 (equivalent of RMB3.45million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 30, 2015 | — | 563 | ||||
Loan payable to a PRC commercial bank, principal of $326 (equivalent of RMB2 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 29, 2015 | — | 327 | ||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Loan payable to a PRC commercial bank, principal of $244 (equivalent of RMB1.5million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 11, 2015 | — | 245 | ||||
Loan payable to a PRC commercial bank, principal of $8,142 (equivalent of RMB50 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in May 2014 | 8,278 | — | ||||
Loan payable to a PRC commercial bank, principal of $8,008 (equivalent of RMB50 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, repaid in May 2014 | 8,275 | — | ||||
Loan payable to a PRC commercial bank, principal of $6,499 (equivalent of RMB40 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in June 2014 | 6,622 | — | ||||
Loan payable to a PRC commercial bank, principal of $3,592 (equivalent of RMB22 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in September 2014 | 3,642 | — | ||||
Loan payable to a PRC commercial bank, principal of $3,265 (equivalent of RMB20 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in August 2014 | 3,311 | — | ||||
Loan payable to a PRC commercial bank, principal of $1,796 (equivalent of RMB11 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in June 2014 | 1,821 | — | ||||
Loan payable to a PRC commercial bank, principal of $1,796 (equivalent of RMB11 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in July 2014 | 1,821 | — | ||||
Loan payable to a PRC commercial bank, principal of $1,625 (equivalent of RMB10 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in January 2014 | 1,655 | — | ||||
Total | 80,704 | 141,727 | ||||
Including: | ||||||
Current | 60,704 | 87,787 | ||||
Non-current | 20,000 | 53,940 | ||||
Total | 80,704 | 141,727 | ||||
(i) | The Group agreed to certain financial covenants (among other covenants), including to maintain minimum cash assets of $5.0 million at all times during the term of the loan, as well as to maintain a ratio of maximum total funded debt to earnings before interest, tax, depreciation and amortization (the “EBITDA ratio”) no greater than 3.8:1 (the “EBITDA Ratio Covenant”) and a ratio of total liabilities to tangible net worth of no more than 2:1, in each case calculated using average quarterly figures based on the consolidated balance sheets of the Group for the most recent four quarters. In August 2013, East West Bank modified the EBITDA ratio as not to exceed 4.75:1 for the second quarter of 2013, 4.25:1 for the third quarter of 2013 and 3.0:1 for the fourth quarter of 2013 and beyond. Any failure to comply with such financial covenants (among other things) would constitute an event of default under the agreement. If the Group fails to timely remedy a curable event of default within the applicable cure period or obtain a waiver, the bank would have the right to accelerate the loan repayment and charge a default rate of interest. The Group was in compliance with all the covenants for the first, second and third quarters of 2014. The Group does not expect any default on the covenants within the 12 months following September 30, 2014. As a result, the loans were classified as long-term liability as of September 30, 2014. | |||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Summary of share options to employees and non-employees | ||||||||||
Weighted | ||||||||||
Weighted | average | Aggregate | ||||||||
Number of | average | remaining | intrinsic | |||||||
Options | share options | exercise price | contractual life | value | ||||||
Outstanding as of January 1, 2013 | 3,478,713 | 8.17 | 7.9 | 7,188 | ||||||
Granted | 110,000 | 7.76 | 9.8 | |||||||
Exercised | (349,147 | ) | 5.29 | 6.7 | ||||||
Expired | (34,157 | ) | 10.67 | 8.4 | ||||||
Forfeited | (109,521 | ) | 10.26 | 8.3 | ||||||
Outstanding as of September 30, 2013 | 3,095,888 | 7.68 | 7.9 | 9,017 | ||||||
Outstanding as of January 1, 2014 | 3,014,086 | 7.72 | 7.7 | 11,349 | ||||||
Granted | — | — | — | — | ||||||
Exercised | (277,343 | ) | 6.8 | 6.4 | ||||||
Expired | (1,520 | ) | 7.91 | 6.9 | ||||||
Forfeited | (37,158 | ) | 7.7 | 6.8 | ||||||
Outstanding as of September 30, 2014 | 2,698,065 | 7.81 | 6.7 | 11,357 | ||||||
Exercisable as of September 30, 2014 | 2,383,196 | 7.8 | 6.6 | 9,947 | ||||||
Expected to vest as of September 30, 2014 | 224,135 | 7.76 | 7.4 | 955 | ||||||
Summary of restricted shares | ||||||||||
Weighted | ||||||||||
average | Aggregate | |||||||||
Number of | grant date | intrinsic | ||||||||
Restricted shares | restricted shares | fair value | value | |||||||
Outstanding as of January 1, 2014 | — | — | — | |||||||
Granted | 1,750,000 | 12.54 | — | |||||||
Vested | (500 | ) | 12.54 | — | ||||||
Forfeited | — | — | — | |||||||
Outstanding as at September 30, 2014 | 1,749,500 | 12.54 | — | |||||||
Vested and expect to vest as of September 30, 2014 | 1,750,000 | — | ||||||||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
NET INCOME (LOSS) PER SHARE | ||||||
Schedule of calculation of the net income per share | ||||||
Nine months ended September 30 | ||||||
2013 | 2014 | |||||
Numerator used in basic and diluted net income per share: | ||||||
Net income attributable to Bona Film Group Limited | 5,238 | 7,985 | ||||
Shares (denominator): | ||||||
Weighted average ordinary shares outstanding used in computing basic net income per ordinary share | 29,791,387 | 30,334,730 | ||||
Employee share options and restricted shares (treasury effect) | 514,938 | 1,256,775 | ||||
Weighted average ordinary shares outstanding used in computing diluted net income per ordinary share | 30,306,325 | 31,591,505 | ||||
Net income per ordinary share-basic | 0.18 | 0.26 | ||||
Net income per ordinary share-diluted | 0.17 | 0.25 | ||||
NONCONTROLLING_INTEREST_Tables
NONCONTROLLING INTEREST (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
NONCONTROLLING INTEREST | ||||||||||||||||||||
Schedule of noncontrolling interest | ||||||||||||||||||||
Distribution | ||||||||||||||||||||
Bona | Workshop | Cinema | Xi’an | Shanghai | Mango | Tianjin | Sanya | |||||||||||||
Guoqiang | (BVI&HK) | Popular | Huitong | Cinema | Cinema | (Nongken&Jin’ao) | Cinema | Total | ||||||||||||
Balance as of January 1, 2013 | — | 641 | (352 | ) | 345 | 2,057 | 1,092 | 154 | — | 3,937 | ||||||||||
Capital contribution (i) | 48 | — | — | — | — | — | — | — | 48 | |||||||||||
Acquisition of noncontrolling interests (ii) | — | — | — | (307 | ) | — | (758 | ) | — | — | (1,065 | ) | ||||||||
Foreign currency translation adjustment | 1 | (1 | ) | 1 | 4 | 3 | 7 | (3 | ) | — | 12 | |||||||||
Net (loss) income | (9 | ) | (419 | ) | (6 | ) | (42 | ) | 75 | 78 | (748 | ) | — | (1,071 | ) | |||||
Balance as of September 30, 2013 | 40 | 221 | (357 | ) | — | 2,135 | 419 | (597 | ) | — | 1,861 | |||||||||
Balance as of January 1, 2014 | 35 | 384 | (357 | ) | — | 2,147 | 394 | (807 | ) | — | 1,796 | |||||||||
Acquisition of an equity method investee (Note 8) | — | — | — | — | — | — | — | 803 | 803 | |||||||||||
Foreign currency translation adjustment | (1 | ) | — | — | — | (2 | ) | (4 | ) | 10 | (5 | ) | (2 | ) | ||||||
Net (loss) income | (16 | ) | 9 | (5 | ) | — | 68 | 74 | (506 | ) | (46 | ) | (422 | ) | ||||||
Balance as of September 30, 2014 | 18 | 393 | (362 | ) | — | 2,213 | 464 | (1,303 | ) | 752 | 2,175 | |||||||||
(i) | On March 6, 2013, the Group set up a subsidiary of its VIE, Bona Guoqiang Tianjin Film and Culture Media Co., Ltd. (“Bona Guoqiang”), of which 70% equity interest was owned by the Group and 30% was owned by a third-party shareholder. | |||||||||||||||||||
(ii) | On January, 2013, the Group acquired 34% equity interest of Changsha Mango Bona Cineplex Management Co., Ltd. (“Mango Cinema”), which is a Company’s VIE’s subsidiary, with a total cash consideration of $328 (equivalent to RMB2.04 million) from a noncontrolling shareholder. This was accounted for as an equity transaction with a reduction of noncontrolling interest by $758 and an increase in additional paid-in capital by $430. | |||||||||||||||||||
On May 17, 2013, the Group acquired the remaining 49% interest in Xi’an Huitong Bona Film Culure Media Co., Ltd. (“Xi’an Huitong”), which is a Company’s VIE’s subsidiary, with a total cash consideration of $398 (equivalent to RMB2.45 million) from a noncontrolling shareholder. After the acquisition, it became a 100% consolidated entity of the Group. This was accounted for as an equity transaction with a reduction of noncontrolling interest by $307 and a decrease in additional paid-in capital by $92. | ||||||||||||||||||||
RELATED_PARTY_BALANCES_AND_TRA1
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||
Schedule of nature of the relationships with related parties | ||||||
Name | Relationship with the Group | |||||
Mr. Dong Yu | Chairman, CEO and principal shareholder | |||||
Mr. Zhong Jiang | Independent Director | |||||
Hubei Film Distribution and Exhibition Co., Ltd. | Noncontrolling shareholder | |||||
(“Hubei Film Distribution”) | ||||||
Wuhan Lianzhong | Cost method investee | |||||
Zhongda Helian | Cost method investee | |||||
Ms. Xiang Li | Noncontrolling shareholder | |||||
Hunan Xiaoxiang Cineplex Investment Management Co., Ltd. | Noncontrolling shareholder | |||||
(“Hunan Xiaoxiang”) | ||||||
Film Workshop Co., Ltd. (“Film Workshop”) | A company majority-owned by a consultant and a former director | |||||
Mr. Xiaojian Xu | Noncontrolling shareholder | |||||
Tianjin Nongken Group Real Estate Development Co., Ltd. | Noncontrolling shareholder | |||||
(“Nongken Real Estate”) | ||||||
Tianjin Nongken Group Culture Investment Co., Ltd. | A company majority-owned by a noncontrolling shareholder | |||||
(“Nongken Culture”) | ||||||
Tianjin Nongken Group Co., Ltd. (“Nongken Group”) | A company as a shareholder of a noncontrolling shareholder | |||||
Sanya Cinema | Equity method investee | |||||
Wuhu Bona | Equity method investee | |||||
Bona Film Investment Fund | Equity method investee | |||||
Mr. Guoqiang Lu | Noncontrolling shareholder | |||||
Beijing Xinliliang Television Culture Co., Ltd (“Beijing Xinliliang”) | A company owned by a noncontrolling shareholder | |||||
Beijing Shui Shang Quan Jing Cineplex Construction | A company owned by a shareholder’s related party | |||||
Consultation Co., Ltd. (“Shui Shang Quan Jing”) | ||||||
We distribution Ltd. (“We Distribution”) | A company majority-owned by a noncontrolling shareholder | |||||
Schedule of balances due from and due to the related parties | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Amounts due from Shui Shang Quan Jing (i) | — | 1,100 | ||||
Amounts due from affiliates of We Distribution (ii) | 295 | 256 | ||||
Amounts due from Nongken Group (iii) | 55 | 49 | ||||
Amounts due from Wuhu Bona (iv) | 156 | 11 | ||||
Amounts due from Sanya Cinema (v) | 3 | — | ||||
Amounts due from Nongken Real Estate | 1 | — | ||||
510 | 1,416 | |||||
(i) | Shui Shang Quan Jing acts as an agent which is responsible for certain cinemas’ leasehold improvement projects of the Group. The amounts represent the advances relating to these projects made by the Group to Shui Shang Quan Jing. The Group expects to complete these projects within the next twelve months. | |||||
(ii) | The amounts represent receivables from We Distribution to support its operation. | |||||
(iii) | The amounts represent the receivables of the theater rental fees from Nongken Group. | |||||
(iv) | The amounts represent the receivables of consulting services fees from Wuhu Bona. | |||||
(v) | The amounts represent the receivables of upfront expenses paid to Sanya Cinema. | |||||
All the amounts due from related parties are unsecured and non-interest bearing. | ||||||
In addition to the film participation financing liabilities with a related party, Bona Film Investment Fund, described in Note 14, other balances due to related parties consist of the following at: | ||||||
December 31, | September 30, | |||||
2013 | 2014 | |||||
Amounts due to Nongken Real Estate (i) | 2,105 | 2,555 | ||||
Amounts due to Nongken Culture (ii) | 1,541 | 1,579 | ||||
Amounts due to Film Workshop (iii) | 685 | 695 | ||||
Amounts due to Hubei Film Distribution (iv) | 463 | 456 | ||||
Amounts due to Hunan Xiaoxiang (iv) | 248 | 245 | ||||
Amounts due to Beijing Xinliliang (v) | 57 | 56 | ||||
Amounts due to Wuhan Lianzhong (vi) | 784 | — | ||||
Amounts due to Mr. Guoqiang Lu (vii) | 3 | — | ||||
5,886 | 5,586 | |||||
(i) | The amounts represent payables for loans obtained from Nongken Real Estate. | |||||
(ii) | The amounts represent payables to Nongken Culture for rental expenses. | |||||
(iii) | The amounts represent payables for film production services provided by Film Workshop. | |||||
(iv) | The amounts mainly represent loans from the noncontrolling shareholders to support the operations of two cinemas of the Group. | |||||
(v) | The amounts represent payables for film production services provided by Beijing Xinliliang. | |||||
(vi) | The amounts represent payables for film projection equipment purchased from Wuhan Lianzhong. | |||||
(vii) | The amounts represent reimbursements payable to Mr. Guoqiang Lu for expenses incurred for Bona Guoqiang. | |||||
All the amounts due to related parties are unsecured and non-interest bearing. | ||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
SEGMENT INFORMATION | ||||||||||||||
Schedule of selected financial information | ||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||
Film | ||||||||||||||
Film | investment | Movie | Talent | Intersegment | ||||||||||
distribution | and production | theater | agency | elimination | Consolidated | |||||||||
Revenue from external customers | 47,768 | 12,227 | 46,093 | 486 | — | 106,574 | ||||||||
Intersegment revenue | 1,179 | 25,372 | — | — | (26,551 | ) | — | |||||||
Cost of revenue | (34,760 | ) | (29,136 | ) | (19,610 | ) | — | 26,551 | (56,955 | ) | ||||
Film participation expenses | — | 537 | — | — | — | 537 | ||||||||
Segment profit | 14,187 | 9,000 | 26,483 | 486 | — | 50,156 | ||||||||
For the nine months ended September 30, 2014 | ||||||||||||||
Film | ||||||||||||||
Film | investment | Movie | Talent | Intersegment | ||||||||||
distribution | and production | theater | agency | elimination | Consolidated | |||||||||
Revenue from external customers | 141,580 | 491 | 58,892 | 541 | — | 201,504 | ||||||||
Intersegment revenue | 2,941 | 47,267 | — | — | (50,208 | ) | — | |||||||
Cost of revenue | (97,263 | ) | (42,551 | ) | (24,419 | ) | (25 | ) | 50,208 | (114,050 | ) | |||
Film participation expenses | — | (11,856 | ) | — | — | — | (11,856 | ) | ||||||
Equity in earnings of equity method investment, net of tax | — | 3,328 | — | — | — | 3,328 | ||||||||
Segment profit | 47,258 | (3,321 | ) | 34,473 | 516 | — | 78,926 | |||||||
Schedule of selected financial information relating to the movie theater segments | ||||||||||||||
Nine months ended September 30 | ||||||||||||||
2013 | 2014 | |||||||||||||
Admissions | 38,409 | 49,330 | ||||||||||||
Concessions | 4,573 | 5,610 | ||||||||||||
Advertising | 1,406 | 1,991 | ||||||||||||
Others | 1,705 | 1,961 | ||||||||||||
Total revenue from movie theater segment | 46,093 | 58,892 | ||||||||||||
Schedule of reconciliation from consolidated segment profit to consolidated financial statements | ||||||||||||||
Nine months ended September 30 | ||||||||||||||
2013 | 2014 | |||||||||||||
Consolidated segment profit | 50,156 | 78,926 | ||||||||||||
Selling and marketing expenses | (10,231 | ) | (20,530 | ) | ||||||||||
General and administrative expenses | (36,323 | ) | (45,047 | ) | ||||||||||
Government subsidies | 1,662 | 1,876 | ||||||||||||
Net interest and exchange loss | (253 | ) | (967 | ) | ||||||||||
Interest income from loan to a producer of TV series | — | 10 | ||||||||||||
Other income | 213 | 277 | ||||||||||||
Income before income tax and equity in earnings of equity method investments, net of tax | 5,224 | 14,545 | ||||||||||||
Schedule of revenues, classified by the major geographic areas | ||||||||||||||
Nine months ended September 30 | ||||||||||||||
2013 | 2014 | |||||||||||||
Revenue from the PRC | 101,123 | 197,323 | ||||||||||||
Revenue from countries other than the PRC | 5,451 | 4,181 | ||||||||||||
Total | 106,574 | 201,504 | ||||||||||||
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | item | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||
Assets of VIEs collateralized for VIEs obligations | $0 | |
Number of restrictions on use of VIEs assets to settle the reporting entitys obligation | 0 | |
Liabilities of consolidated VIEs for which creditors do not have recourse to the general credit of the reporting entity or subsidiaries | $318,771 | $166,078 |
PREPAID_EXPENSES_AND_OTHER_CUR2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Loans and interest receivables from producers of TV series and films | 2,980 | $3,425 |
Rental deposits and prepaid rental expenses | 3,869 | 3,268 |
Prepaid film costs on behalf of other investors | 5,807 | 2,980 |
Amounts due from third parties | 1,887 | 2,366 |
Prepaid film costs | 1,319 | 2,327 |
Promotion and print costs paid on behalf of film producers | 1,000 | 953 |
Advances to employees | 701 | 725 |
Prepaid advertising expenses | 262 | 454 |
Deposits paid for acquisition of property and equipment | 1,115 | 195 |
Interests receivable | 623 | 63 |
Prepaid business tax | 4 | 4 |
Other prepaid expenses | 793 | 566 |
Total | 20,360 | 17,326 |
Loans and interest receivables | ||
Allowance for doubtful accounts on loans and interest receivables | 1,685 | 148 |
Allowance for doubtful accounts on promotion and print costs paid on behalf of film producers | 0 | $5 |
Minimum | ||
Loans and interest receivables | ||
Fixed rate of returns on loans and interest receivables (as a percent) | 7.20% | |
Maximum | ||
Loans and interest receivables | ||
Fixed rate of returns on loans and interest receivables (as a percent) | 20.00% |
DISTRIBUTION_RIGHTS_Details
DISTRIBUTION RIGHTS (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Distribution Rights | |||
Total | $6,554 | $6,554 | |
Distribution rights | |||
Distribution Rights | |||
Released | 2,031 | 2,244 | |
In production and not released | 4,523 | 4,310 | |
Total | 6,554 | 6,554 | |
Distribution rights that are expected to be amortized during the next twelve months | 1,196 | ||
Percentage of expected amortization | 100.00% | ||
Expected amortization period | 3 years | ||
Impairment on the unamortized distribution costs of two films | 194 | 982 | |
Amortization expenses on the unamortized distribution costs of two films | 0 | ||
Revenue on the unamortized distribution costs of two films | 0 | ||
Discount rate (as a percent) | 15.00% | ||
Expected period | 10 years | ||
Discount rate change | 1.00% | ||
Impact of change of one percent in discount rate on fair value | $11 |
PRODUCTION_COSTS_Details
PRODUCTION COSTS (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Film production cost | ||
Subtotal for completed films | $24,651 | $25,925 |
Subtotal for films in production and not released | 157,883 | 116,320 |
Total | 182,534 | 142,245 |
Production costs that are expected to be amortized during the next twelve months | $10,640 | |
Expected amortized costs within three years (as a percent) | 86.00% | |
Period over which film costs are amortized | 3 years |
PRODUCTION_COSTS_Details_2
PRODUCTION COSTS (Details 2) (Distribution rights and capitalized production costs, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Distribution and production costs | ||
Impairment charges | $3,402 | $1,171 |
Impairment charges, unreleased film production costs | 1,861 | |
Period over which film not set for production | 3 years | |
Expected period | 10 years | |
Discount rate change | 1.00% | |
Impact of change of one percent in discount rate on fair value | $72 | |
Minimum | ||
Distribution and production costs | ||
Discount rate (as a percent) | 15.00% | |
Maximum | ||
Distribution and production costs | ||
Discount rate (as a percent) | 16.00% |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Property And Equipment, Net | |||
Property and Equipment, total | $77,482 | $75,404 | |
Less: accumulated depreciation | -17,799 | -13,963 | |
Property and equipment, total before construction in progress | 59,683 | 61,441 | |
Construction in progress | 8,547 | 2,238 | |
Property and equipment, net | 68,230 | 63,679 | |
Depreciation expense | 4,019 | 3,671 | |
Film projection equipment | |||
Property And Equipment, Net | |||
Property and Equipment, total | 27,852 | 27,166 | |
Furniture and office equipment | |||
Property And Equipment, Net | |||
Property and Equipment, total | 2,155 | 1,954 | |
Transportation equipment | |||
Property And Equipment, Net | |||
Property and Equipment, total | 841 | 853 | |
Leasehold improvements | |||
Property And Equipment, Net | |||
Property and Equipment, total | $46,634 | $45,431 |
COST_METHOD_INVESTMENTS_Detail
COST METHOD INVESTMENTS (Details) (USD $) | 9 Months Ended | 1 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Apr. 30, 2008 | Oct. 31, 2011 | Oct. 31, 2013 | Jan. 31, 2012 |
Cost Method Investment | ||||||||
Investment of equity interest | $1,478 | $1,479 | ||||||
Dividends received from a cost method investee | 64 | |||||||
Impairment of the cost method investment | 0 | 0 | ||||||
Wuhan Lianzhong | ||||||||
Cost Method Investment | ||||||||
Investment of equity interest | 29 | |||||||
Percentage of cost method investee owned | 16.67% | |||||||
Zhongda Helian | ||||||||
Cost Method Investment | ||||||||
Investment of equity interest | 63 | |||||||
Percentage of cost method investee owned | 10.00% | |||||||
Dividends received from a cost method investee | 64 | |||||||
China Lion | ||||||||
Cost Method Investment | ||||||||
Investment of equity interest | $180 | $1,200 | ||||||
Percentage of cost method investee owned | 15.00% | 15.67% |
EQUITY_METHOD_INVESTMENTS_Deta
EQUITY METHOD INVESTMENTS (Details) | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
USD ($) | USD ($) | Wuhu Bona | Wuhu Bona | Wuhu Bona | Wuhu Bona | Wuhu Bona | Bona Film Investment Fund | Bona Film Investment Fund | Bona Film Investment Fund | Bona Film Investment Fund | Bona Film Investment Fund | Bona Film Investment Fund | Bona Film Investment Fund | Sanya Cinema | Sanya Cinema | Sanya Cinema | |
item | item | USD ($) | USD ($) | USD ($) | USD ($) | CNY | CNY | Outside investors | Wuhu Bona | Wuhu Bona | USD ($) | USD ($) | |||||
CNY | CNY | CNY | |||||||||||||||
Investment In Equity Affiliates | |||||||||||||||||
Amount invested | $571,000 | $32,037,000 | 197,000,000 | 462,400,000 | 660,000 | $833,000 | |||||||||||
Capital amount subscribed | 300,000,000 | 1,000,000 | |||||||||||||||
Legal ownership (as a percent) | 29.90% | 70.00% | 30.00% | 0.10% | 51.00% | ||||||||||||
Number of board members that the entity is entitled to nominate | 3 | ||||||||||||||||
Number of board members | 5 | ||||||||||||||||
Board members' approval needed in fraction for any significant board resolutions | 0.67 | ||||||||||||||||
Number of investors together with whom equity method investee is established | 2 | ||||||||||||||||
Capital of private equity fund | 1,000,000,000 | ||||||||||||||||
Investment of films and TV projects from Fund | 449,500,000 | ||||||||||||||||
Percentage of shareholders' approval for significant shareholders' resolutions | 50.00% | ||||||||||||||||
Investment income received and distributed | 92,000,000 | ||||||||||||||||
Profit appropriation | -28,000,000 | ||||||||||||||||
Period over which private equity fund will be used to finance the development and production of film and TV projects | 1 year | 2 years | |||||||||||||||
The Group's share of the equity method investees' profit or loss and distributions | |||||||||||||||||
Balance at the beginning of the period | 26,278,000 | 564,000 | 24,872,000 | 842,000 | |||||||||||||
Investments | 12,086,000 | 25,909,000 | 571,000 | 12,086,000 | 24,505,000 | 833,000 | |||||||||||
Share of profit (loss) | 3,328,000 | -13,000 | 365,000 | -19,000 | 2,962,000 | 6,000 | 1,000 | ||||||||||
Acquisition of an equity method investee | -820,000 | -820,000 | |||||||||||||||
Profit appropriation | -4,554,000 | -4,554,000 | |||||||||||||||
Exchange differences | 222,000 | 9,000 | 6,000 | 1,000 | 193,000 | 5,000 | 23,000 | 3,000 | |||||||||
Balance at the end of the period | $36,096,000 | $25,905,000 | $923,000 | $553,000 | $35,173,000 | $24,516,000 | $836,000 |
ACQUIRED_INTANGIBLE_ASSETS_NET2
ACQUIRED INTANGIBLE ASSETS, NET (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Acquired intangible assets with definite lives | |||
Gross carrying amount | $2,519 | $2,519 | |
Accumulated amortization | -2,585 | -2,491 | |
Exchange differences | 66 | 67 | |
Total | 95 | ||
Acquired intangible assets with indefinite lives | |||
Movie theater licenses, Gross carrying amount | 2,328 | 2,328 | |
Movie theater licenses, Exchange difference | 23 | 29 | |
Movie theater licenses, Net carrying amount | 2,351 | 2,357 | |
Intangible Assets | |||
Gross carrying amount, Total | 4,847 | 4,847 | |
Exchange difference, Total | 89 | 96 | |
Net carrying amount, Total | 2,351 | 2,452 | |
Amortization expenses | 94 | 570 | |
Impairment on acquired intangible assets | 0 | 0 | |
Membership | |||
Acquired intangible assets with definite lives | |||
Gross carrying amount | 59 | 59 | |
Accumulated amortization | -59 | -59 | |
Favorable lease | |||
Acquired intangible assets with definite lives | |||
Gross carrying amount | 2,460 | 2,460 | |
Accumulated amortization | -2,526 | -2,432 | |
Exchange differences | 66 | 67 | |
Total | $95 |
GOODWILL_Details
GOODWILL (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the carrying amount of goodwill | |||
Gross balance at the beginning of the period | $49,110 | ||
Exchange difference due to translation | -694 | 1,430 | |
Net goodwill carrying amount at the end of the period | 49,846 | 50,540 | |
Film investment and production | |||
Changes in the carrying amount of goodwill | |||
Gross balance at the beginning of the period | 35 | ||
Gross goodwill carrying amount | 35 | ||
Net goodwill carrying amount at the end of the period | 35 | 35 | |
Talent agency | |||
Changes in the carrying amount of goodwill | |||
Gross balance at the beginning of the period | 143 | ||
Exchange difference due to translation | -2 | 4 | |
Net goodwill carrying amount at the end of the period | 145 | 147 | |
Movie theaters | |||
Changes in the carrying amount of goodwill | |||
Gross balance at the beginning of the period | 48,932 | ||
Exchange difference due to translation | -692 | 1,426 | |
Net goodwill carrying amount at the end of the period | $49,666 | $50,358 |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Advance from customers | $12,121 | $12,620 |
Payables for rental expenses | 10,894 | 8,237 |
Business taxes and other tax payable | 7,197 | 3,678 |
Payable of advertising fees | 6,847 | 2,772 |
Accrued payroll, welfare and other social expenses | 1,202 | 1,897 |
Other accounts payable to third parties | 1,222 | 1,592 |
Accrued professional fees | 888 | 774 |
Payable of distribution and promotion fees | 1,140 | 536 |
Deposits payable | 529 | 421 |
Other current liabilities | 81 | 108 |
Total | $42,121 | $32,635 |
BANK_BORROWINGS_Details
BANK BORROWINGS (Details) | 9 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | USD ($) | Bank borrowings | Bank borrowings | Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company's subsidiary, Bona International, Film Group Limited, due on November 20, 2015 | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | PRC commercial bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | Overseas Commercial Bank | |
USD ($) | USD ($) | Maximum | Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company's subsidiary, Bona International, Film Group Limited, due on November 20, 2015 | Loan payable to a PRC commercial bank, principal of $13,034 (equivalent of RMB80 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, the Company's VIE's subsidiaries, Zhejiang Bona, Film Television Production Co., Ltd. ("Zhejiang Bona"), Tianjin Bona and Culture Media Co., Ltd. ("Tianjin Bona") and Beijing Bona International Cineplex, Investment and Management Co., Ltd. ("Beijing Bona Cineplex"), due on March 27, 2015 | Loan payable to a PRC commercial bank, principal of $13,034 (equivalent of RMB80 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, the Company's VIE's subsidiaries, Zhejiang Bona, Film Television Production Co., Ltd. ("Zhejiang Bona"), Tianjin Bona and Culture Media Co., Ltd. ("Tianjin Bona") and Beijing Bona International Cineplex, Investment and Management Co., Ltd. ("Beijing Bona Cineplex"), due on March 27, 2015 | Loan payable to a PRC commercial bank, principal of $7,168 (equivalent of RMB44 million), bearing interest at 7.20% per annum, guaranteed by Zhejiang Bona, due on July 28, 2015 | Loan payable to a PRC commercial bank, principal of $7,168 (equivalent of RMB44 million), bearing interest at 7.20% per annum, guaranteed by Zhejiang Bona, due on July 28, 2015 | Loan payable to a PRC commercial bank, principal of $7,006 (equivalent of RMB43 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 6, 2016 | Loan payable to a PRC commercial bank, principal of $7,006 (equivalent of RMB43 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 6, 2016 | Loan payable to a PRC commercial bank, principal of $6,517 (equivalent of RMB40 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on June 20, 2015 | Loan payable to a PRC commercial bank, principal of $6,517 (equivalent of RMB40 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on June 20, 2015 | Loan payable to a PRC commercial bank, principal of $5,702 (equivalent of RMB35 million), bearing interest at 6% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, due on April 24, 2015 | Loan payable to a PRC commercial bank, principal of $5,702 (equivalent of RMB35 million), bearing interest at 6% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, due on April 24, 2015 | Loan payable to a PRC commercial bank, principal of $8,008 (equivalent of RMB50 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, repaid in May 2014 | Loan payable to a PRC commercial bank, principal of $8,008 (equivalent of RMB50 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, repaid in May 2014 | Loan payable to a PRC commercial bank, principal of $8,142 (equivalent of RMB50 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on May 31, 2014 | Loan payable to a PRC commercial bank, principal of $8,142 (equivalent of RMB50 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on May 31, 2014 | Loan payable to a PRC commercial bank, principal of $6,499 (equivalent of RMB40 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on June 24, 2014 | Loan payable to a PRC commercial bank, principal of $6,499 (equivalent of RMB40 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on June 24, 2014 | Loan payable to a PRC commercial bank, principal of $3,592 (equivalent of RMB22 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on August 30, 2014 | Loan payable to a PRC commercial bank, principal of $3,592 (equivalent of RMB22 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on August 30, 2014 | Loan payable to a PRC commercial bank, principal of $3,265 (equivalent of RMB20 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on August 29, 2014 | Loan payable to a PRC commercial bank, principal of $3,265 (equivalent of RMB20 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on August 29, 2014 | Loan payable to a PRC commercial bank, principal of $1,796 (equivalent of RMB11 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on June 30, 2014 | Loan payable to a PRC commercial bank, principal of $1,796 (equivalent of RMB11 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on June 30, 2014 | Loan payable to a PRC commercial bank, principal of $1,796 (equivalent of RMB11 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on July 30, 2014 | Loan payable to a PRC commercial bank, principal of $1,796 (equivalent of RMB11 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on July 30, 2014 | Loan payable to a PRC commercial bank, principal of $1,625 (equivalent of RMB10 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in January 2014 | Loan payable to a PRC commercial bank, principal of $1,625 (equivalent of RMB10 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, repaid in January 2014 | Loan payable to a PRC commercial bank, principal of $5,056 (equivalent of RMB31 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu Zhejiang Bona, Tianjin Bona and Beijing Bona Cineplex, due on June 29, 2015 | Loan payable to a PRC commercial bank, principal of $5,056 (equivalent of RMB31 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu Zhejiang Bona, Tianjin Bona and Beijing Bona Cineplex, due on June 29, 2015 | Loan payable to a PRC commercial bank, principal of $4,399 (equivalent of RMB27 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 25, 2016 | Loan payable to a PRC commercial bank, principal of $4,399 (equivalent of RMB27 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 25, 2016 | Loan payable to a PRC commercial bank, principal of $3,259 (equivalent of RMB20 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona,Tianjin Bona and Beijing Bona Cineplex, due on September 1, 2015 | Loan payable to a PRC commercial bank, principal of $3,259 (equivalent of RMB20 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona,Tianjin Bona and Beijing Bona Cineplex, due on September 1, 2015 | Loan payable to a PRC commercial bank, principal of $3,258 (equivalent of RMB20 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and the Company's VIR, Bona Film Group Co, Ltd. (PRC) ("Bona Film"), due on September 26, 2016 | Loan payable to a PRC commercial bank, principal of $3,258 (equivalent of RMB20 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and the Company's VIR, Bona Film Group Co, Ltd. (PRC) ("Bona Film"), due on September 26, 2016 | Loan payable to a PRC commercial bank, principal of $2,770 (equivalent of RMB17 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 30, 2016 | Loan payable to a PRC commercial bank, principal of $2,770 (equivalent of RMB17 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 30, 2016 | Loan payable to a PRC commercial bank, principal of $2,444 (equivalent of RMB15 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on September 18, 2015 | Loan payable to a PRC commercial bank, principal of $2,444 (equivalent of RMB15 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on September 18, 2015 | Loan payable to a PRC commercial bank, principal of $1,629 (equivalent of RMB10 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on August 28, 2015 | Loan payable to a PRC commercial bank, principal of $1,629 (equivalent of RMB10 million), bearing interest at 6.3% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Beijing Bona Cineplex, due on August 28, 2015 | Loan payable to a PRC commercial bank, principal of $1,592 (equivalent of RMB9.77 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on September 26, 2015 | Loan payable to a PRC commercial bank, principal of $1,592 (equivalent of RMB9.77 million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on September 26, 2015 | Loan payable to a PRC commercial bank, principal of $1,303 (equivalent of RMB8 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 29, 2015 | Loan payable to a PRC commercial bank, principal of $1,303 (equivalent of RMB8 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 29, 2015 | Loan payable to a PRC commercial bank, principal of $896 (equivalent of RMB5.5million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 11, 2016 | Loan payable to a PRC commercial bank, principal of $896 (equivalent of RMB5.5million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 11, 2016 | Loan payable to a PRC commercial bank, principal of $815 (equivalent of RMB5 million), bearing interest at 6% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, due on October 24, 2014 | Loan payable to a PRC commercial bank, principal of $815 (equivalent of RMB5 million), bearing interest at 6% per annum, guaranteed by Mr. Dong Yu and Zhejiang Bona, due on October 24, 2014 | Loan payable to a PRC commercial bank, principal of $652 (equivalent of RMB4 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona, Tianjin Bona and Beijing Bona Cineplex, due on July 17, 2015 | Loan payable to a PRC commercial bank, principal of $652 (equivalent of RMB4 million), bearing interest at 7.20% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona, Tianjin Bona and Beijing Bona Cineplex, due on July 17, 2015 | Loan payable to a PRC commercial bank, principal of $562 (equivalent of RMB3.45million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 30, 2015 | Loan payable to a PRC commercial bank, principal of $562 (equivalent of RMB3.45million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 30, 2015 | Loan payable to a PRC commercial bank, principal of $326 (equivalent of RMB2 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 29, 2015 | Loan payable to a PRC commercial bank, principal of $326 (equivalent of RMB2 million), bearing interest at 6.15% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Tianjin Bona, due on May 29, 2015 | Loan payable to a PRC commercial bank, principal of $244 (equivalent of RMB1.5million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 11, 2015 | Loan payable to a PRC commercial bank, principal of $244 (equivalent of RMB1.5million), bearing interest at 7.38% per annum, guaranteed by Mr. Dong Yu, Zhejiang Bona and Bona Film, due on July 11, 2015 | Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company's subsidiary, Bona International, Film Group Limited, due on November 20, 2015 | Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company's subsidiary, Bona International, Film Group Limited, due on November 20, 2015 | Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company's subsidiary, Bona International, Film Group Limited, due on November 20, 2015 | Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company's subsidiary, Bona International, Film Group Limited, due on November 20, 2015 | Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company's subsidiary, Bona International, Film Group Limited, due on November 20, 2015 | Loan payable to an overseas commercial bank, principal of $20,000, bearing interest at LIBOR plus 3.25% per annum but in no event less than 3.5% per annum, guaranteed by the Company's subsidiary, Bona International, Film Group Limited, due on November 20, 2015 | Loan payable to an overseas commercial bank, principal of $9,659 and $15,612 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 3.25% per annum, guaranteed by $10,163 (equivalent of RMB62 million) and $16,292 (equivalent of RMB100 million) of the Company's restricted cash as of December 31, 2013 and September 30, 2014 respectively, due date exchanged from September 10, 2014 to October 10, 2015 | Loan payable to an overseas commercial bank, principal of $9,659 and $15,612 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 3.25% per annum, guaranteed by $10,163 (equivalent of RMB62 million) and $16,292 (equivalent of RMB100 million) of the Company's restricted cash as of December 31, 2013 and September 30, 2014 respectively, due date exchanged from September 10, 2014 to October 10, 2015 | Loan payable to an overseas commercial bank, principal of $9,659 and $15,612 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 3.25% per annum, guaranteed by $10,163 (equivalent of RMB62 million) and $16,292 (equivalent of RMB100 million) of the Company's restricted cash as of December 31, 2013 and September 30, 2014 respectively, due date exchanged from September 10, 2014 to October 10, 2015 | Loan payable to an overseas commercial bank, principal of $9,659 and $15,612 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 3.25% per annum, guaranteed by $10,163 (equivalent of RMB62 million) and $16,292 (equivalent of RMB100 million) of the Company's restricted cash as of December 31, 2013 and September 30, 2014 respectively, due date exchanged from September 10, 2014 to October 10, 2015 | Loan payable to an overseas commercial bank, principal of $15,563 and $15,447 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 2.95% per annum over one month LIBOR, guaranteed by $18,156 (equivalent of RMB111 million) of the Company's restricted cash, due date exchanged from August 8, 2014 to August 28, 2015 | Loan payable to an overseas commercial bank, principal of $15,563 and $15,447 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 2.95% per annum over one month LIBOR, guaranteed by $18,156 (equivalent of RMB111 million) of the Company's restricted cash, due date exchanged from August 8, 2014 to August 28, 2015 | Loan payable to an overseas commercial bank, principal of $15,563 and $15,447 as of December 31, 2013 and September 30, 2014 respectively, bearing interest at 2.95% per annum over one month LIBOR, guaranteed by $18,156 (equivalent of RMB111 million) of the Company's restricted cash, due date exchanged from August 8, 2014 to August 28, 2015 | Loan payable to an overseas commercial bank, principal of $11,048, bearing interest at 3.25% per annum over one month LIBOR, guaranteed by $11,730 (equivalent of MB72 million) of the Company's restricted cash, due on April 24, 2015 | Loan payable to an overseas commercial bank, principal of $11,048, bearing interest at 3.25% per annum over one month LIBOR, guaranteed by $11,730 (equivalent of MB72 million) of the Company's restricted cash, due on April 24, 2015 | Loan payable to an overseas commercial bank, principal of $10,760, bearing interest at 2.7% per annum over one month LIBOR, guaranteed by $11,404 (equivalent of RMB70 million) of the Company's restricted cash, due on March 10, 2015 | Loan payable to an overseas commercial bank, principal of $10,760, bearing interest at 2.7% per annum over one month LIBOR, guaranteed by $11,404 (equivalent of RMB70 million) of the Company's restricted cash, due on March 10, 2015 | ||||
item | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | item | item | USD ($) | USD ($) | Maximum | Minimum | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | CNY | ||||||
item | item | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BANK BORROWINGS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal amount borrowed | $20,000,000 | $13,034,000 | 80,000,000 | $7,168,000 | 44,000,000 | $7,006,000 | 43,000,000 | $6,517,000 | 40,000,000 | $5,702,000 | 35,000,000 | $8,008 | 50,000,000 | $8,142 | 50,000,000 | $6,499,000 | 40,000,000 | $3,592,000 | 22,000,000 | $3,265,000 | 20,000,000 | $1,796 | 11,000,000 | $1,796,000 | 11,000,000 | $1,625,000 | 10,000,000 | $5,056,000 | 31,000,000 | $4,399,000 | 27,000,000 | $3,259,000 | 20,000,000 | $3,258,000 | 20,000,000 | $2,770,000 | 17,000,000 | $2,444,000 | 15,000,000 | $1,629,000 | 10,000,000 | $1,592,000 | 9,770,000 | $1,303,000 | 8,000,000 | $896,000 | 5,500,000 | $815,000 | 5,000,000 | $652,000 | 4,000,000 | $562,000 | 3,450,000 | $326,000 | 2,000,000 | $244,000 | 1,500,000 | $15,612,000 | $9,659,000 | $15,447,000 | $15,563,000 | $11,048,000 | $10,760,000 | |||||||||||||||||
Interest rate (as a percent) | 3.25% | 7.20% | 7.20% | 7.20% | 7.20% | 6.15% | 6.15% | 6.30% | 6.30% | 6.00% | 6.00% | 6.15% | 6.15% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 7.20% | 6.15% | 6.15% | 7.20% | 7.20% | 7.38% | 7.38% | 7.38% | 7.38% | 6.30% | 6.30% | 6.30% | 6.30% | 7.38% | 7.38% | 6.15% | 6.15% | 7.38% | 7.38% | 6.00% | 6.00% | 7.20% | 7.20% | 7.38% | 7.38% | 6.15% | 6.15% | 7.38% | 7.38% | 3.25% | 3.25% | 2.95% | 2.95% | 3.25% | 3.25% | 2.70% | 2.70% | |||||||||||||||
Annual interest rate, minimum (as a percent) | 3.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans guaranteed by restricted cash | 16,292,000 | 100,000,000 | 10,163,000 | 62,000,000 | 18,156,000 | 111,000,000 | 11,730,000 | 72,000,000 | 11,404,000 | 70,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of quarters figures used to calculate ratios | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash assets required during the term of the loans | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA Ratio Covenant | 4.25 | 4.75 | 3.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of total liabilities to tangible net worth | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expenses capitalized to production costs | 2,802,000 | 580,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the balances of bank borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the period | 141,727,000 | 80,704,000 | 13,060,000 | 7,183,000 | 7,021,000 | 6,528,000 | 5,714,000 | 8,275,000 | 8,278,000 | 6,622,000 | 3,642,000 | 3,311,000 | 1,821,000 | 1,821,000 | 1,655,000 | 5,061,000 | 4,408,000 | 3,265,000 | 3,259,000 | 2,776,000 | 2,448,000 | 1,632,000 | 1,592,000 | 1,306,000 | 899,000 | 816,000 | 653,000 | 563,000 | 327,000 | 245,000 | 20,027,000 | 15,640,000 | 9,664,000 | 15,447,000 | 15,588,000 | 11,061,000 | 10,785,000 | |||||||||||||||||||||||||||||||||||||||||||
Accrued interest expenses | 4,000,000 | 1,603,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of the period | 141,727,000 | 80,704,000 | 13,060,000 | 7,183,000 | 7,021,000 | 6,528,000 | 5,714,000 | 8,275,000 | 8,278,000 | 6,622,000 | 3,642,000 | 3,311,000 | 1,821,000 | 1,821,000 | 1,655,000 | 5,061,000 | 4,408,000 | 3,265,000 | 3,259,000 | 2,776,000 | 2,448,000 | 1,632,000 | 1,592,000 | 1,306,000 | 899,000 | 816,000 | 653,000 | 563,000 | 327,000 | 245,000 | 20,038,000 | 20,027,000 | 15,640,000 | 9,664,000 | 15,447,000 | 15,588,000 | 11,061,000 | 10,785,000 | ||||||||||||||||||||||||||||||||||||||||||
Including: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | 87,787,000 | 60,704,000 | 87,787,000 | 60,704,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-current | 53,940,000 | 20,000,000 | 53,940,000 | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 141,727,000 | 80,704,000 | 13,060,000 | 7,183,000 | 7,021,000 | 6,528,000 | 5,714,000 | 8,275,000 | 8,278,000 | 6,622,000 | 3,642,000 | 3,311,000 | 1,821,000 | 1,821,000 | 1,655,000 | 5,061,000 | 4,408,000 | 3,265,000 | 3,259,000 | 2,776,000 | 2,448,000 | 1,632,000 | 1,592,000 | 1,306,000 | 899,000 | 816,000 | 653,000 | 563,000 | 327,000 | 245,000 | 20,038,000 | 20,027,000 | 15,640,000 | 9,664,000 | 15,447,000 | 15,588,000 | 11,061,000 | 10,785,000 | ||||||||||||||||||||||||||||||||||||||||||
Expected repayment of the borrowings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 1,050 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 122,349 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 18,328 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $0 |
OTHER_BORROWINGS_Details
OTHER BORROWINGS (Details) | 9 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | 31-May-13 | 31-May-13 | 31-May-12 | 31-May-12 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Sep. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 |
USD ($) | USD ($) | Film financing agreement entered into in March 2012 and May 2012 | Film financing agreement entered into in March 2012 and May 2012 | Film financing agreement entered into in March 2012 and May 2012 | Film financing agreement entered into in March 2012 and May 2012 | Film financing agreement entered into in March 2012 and May 2012 | Film financing agreement entered into in March 2012 and May 2012 | Film financing agreement entered into in September 2013 | Film financing agreement entered into in September 2013 | Film financing agreement entered into in September 2013 | Film financing agreement entered into in September 2013 | Film financing agreement entered into in September 2013 | Film Financing Agreement Entered Into In April 2014 Member | Film Financing Agreement Entered Into In April 2014 Member | |
Third party investor | Third party investor | Third party investor | Third party investor | Third party investor | Third party investor | Third party investor | Third party investor | Third party investor | Third party investor | Third party investor | USD ($) | CNY | |||
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | ||||||
item | |||||||||||||||
OTHER BORROWINGS | |||||||||||||||
Received from investors | $2,712 | $2,314 | $3,001 | 19,000 | $2,314 | 14,200 | $256 | 1,580 | $2,456 | 15,300 | |||||
Accrued interest expenses | 4,000 | 1,603 | |||||||||||||
Effective interest rate (as a percent) | 15.00% | 15.00% | 8.00% | 10.00% | 10.00% | ||||||||||
Repayments of Other Debt | 1,475 | 3,245 | 1,422 | 9,000 | 1,579 | 10,000 | |||||||||
Number of agreements entered into with other investors | 2 | 2 | |||||||||||||
Interest expenses capitalized to production costs | $2,802 | $580 |
FILM_PARTICIPATION_FINANCING_L1
FILM PARTICIPATION FINANCING LIABILITIES (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Changes in film participation financing liabilities | |||
Current film participation financing liabilities with unrelated parties | $15,006 | $7,117 | |
Bona Film Investment Fund | |||
Changes in film participation financing liabilities | |||
Current film participation financing liabilities with unrelated parties | $94,434 | $54,380 | |
Period over which private equity fund will be used to finance the development and production of film and TV projects | 1 year | 2 years |
INCOME_TAXES_Details
INCOME TAXES (Details) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
INCOME TAXES | ||
Effective income tax rate (as a percent) | 48.00% | 20.00% |
Statutory tax rate in the PRC ( as a percent) | 25.00% |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 22, 2014 |
Stock options | |||||
Share-based compensation | |||||
Share-based compensation expenses recognized | $2,617 | $2,786 | |||
Exercise price (in dollars per share) | $7.81 | $7.68 | $8.17 | ||
Number of share options | |||||
Outstanding at the beginning of the period (in shares) | 3,014,086 | 3,014,086 | 3,478,713 | ||
Granted (in shares) | 110,000 | ||||
Exercised (in shares) | -277,343 | -349,147 | |||
Expired (in shares) | -1,520 | -34,157 | |||
Forfeited (in shares) | -37,158 | -109,521 | |||
Outstanding at the end of the period (in shares) | 2,698,065 | 3,095,888 | 3,478,713 | ||
Exercisable at the end of the period (in shares) | 2,383,196 | ||||
Expected to vest (in shares) | 224,135 | ||||
Weighted average exercise price | |||||
Outstanding at the beginning of the period (in dollars per share) | $7.72 | $7.72 | $8.17 | ||
Granted (in dollars per share) | $7.76 | ||||
Exercised (in dollars per share) | $6.80 | $5.29 | |||
Expired (in dollars per share) | $7.91 | $10.67 | |||
Forfeited (in dollars per share) | $7.70 | $10.26 | |||
Outstanding at the end of the period (in dollars per share) | $7.81 | $7.68 | $8.17 | ||
Exercisable at the end of the period (in dollars per share) | $7.80 | ||||
Expected to vest (in dollars per share) | $7.76 | ||||
Weighted average remaining contractual life | |||||
Outstanding at the beginning of the period | 7 years 8 months 12 days | 6 years 8 months 12 days | 7 years 10 months 24 days | 7 years 10 months 24 days | |
Granted | 9 years 9 months 18 days | ||||
Exercised | 6 years 4 months 24 days | 6 years 8 months 12 days | |||
Expired | 6 years 10 months 24 days | 8 years 4 months 24 days | |||
Forfeited | 6 years 9 months 18 days | 8 years 3 months 18 days | |||
Outstanding at the end of the period | 7 years 8 months 12 days | 6 years 8 months 12 days | 7 years 10 months 24 days | 7 years 10 months 24 days | |
Exercisable at the end of the period | 6 years 7 months 6 days | ||||
Expected to vest | 7 years 4 months 24 days | ||||
Aggregate intrinsic value | |||||
Outstanding at the beginning of the period | 11,349 | 11,349 | 7,188 | ||
Outstanding at the end of the period | 11,357 | 9,017 | 7,188 | ||
Exercisable at the end of the period | 9,947 | ||||
Expected to vest | 955 | ||||
Additional disclosures | |||||
Share-based compensation expenses recognized | 2,617 | 2,786 | |||
Unrecognized compensation expenses | 1,644 | ||||
Weighted-average period over which expense is expected to be recognized | 4 months 24 days | ||||
2010 Plan | Restricted Shares | Officer | |||||
Share-based compensation | |||||
Vested | -500 | 100 | |||
Vested and expected to vest | 1,750,000 | ||||
Remaining Options to vest | 1,747,700 | ||||
Share-based compensation expenses recognized | 4,572 | 0 | |||
Share based compensation expenses related to non vested shares | 17,373 | ||||
Term of option | 10 years | ||||
Number of share options | |||||
Granted (in shares) | 1,750,000 | 1,750,000 | |||
Outstanding at the end of the period (in shares) | 1,749,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||
Average grant date value | $12.54 | ||||
Weighted average remaining contractual life | |||||
Expected to vest | 1 year 6 months 29 days | ||||
Additional disclosures | |||||
Share-based compensation expenses recognized | $4,572 | $0 | |||
Contract life | 10 years | ||||
Estimated forfeiture rate | 0 | ||||
2010 Plan | Restricted Shares | Officer | Minimum | |||||
Share-based compensation | |||||
Vesting period | 23 months | ||||
2010 Plan | Restricted Shares | Officer | Maximum | |||||
Share-based compensation | |||||
Vesting period | 24 months |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
NET INCOME (LOSS) PER SHARE | ||
Net income (loss) attributable to Bona Film Group Limited | $7,985 | $5,238 |
Shares (denominator): | ||
Weighted average ordinary shares outstanding used in computing basic net income per ordinary share | 30,334,730 | 29,791,387 |
Employee share options (treasury effect) (in shares) | 1,256,775 | 514,938 |
Weighted average ordinary shares outstanding used in computing diluted net income (loss) per ordinary share (in shares) | 31,591,505 | 30,306,325 |
Net income (loss) per ordinary share-basic (in dollars per share) | $0.26 | $0.18 |
Net income (loss) per ordinary share-diluted (in dollars per share) | $0.25 | $0.17 |
Securities excluded from the computation of diluted net income per share | 4,447,565 | 3,059,889 |
NONCONTROLLING_INTEREST_Detail
NONCONTROLLING INTEREST (Details) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Mar. 06, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 06, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | 17-May-13 | Sep. 30, 2013 | 17-May-13 | 17-May-13 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | |
USD ($) | USD ($) | Bona Guoqiang | Bona Guoqiang | Bona Guoqiang | Bona Guoqiang | Cinema Popular | Cinema Popular | Distribution Workshop (BVI&HK) | Distribution Workshop (BVI&HK) | Xi'an Huitong | Xi'an Huitong | Xi'an Huitong | Xi'an Huitong | Shanghai Cinema | Shanghai Cinema | Changsha Mango Bona Cineplex Management Co., Ltd. | Changsha Mango Bona Cineplex Management Co., Ltd. | Changsha Mango Bona Cineplex Management Co., Ltd. | Changsha Mango Bona Cineplex Management Co., Ltd. | Tianjin Nonken | Tianjin Nonken | Sunva cinema [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | |||||
Changes in noncontrolling interest | |||||||||||||||||||||||
Balance at the beginning of the period | $1,796,000 | $3,937,000 | $35,000 | ($357,000) | ($352,000) | $384 | $641 | $345,000 | $2,147,000 | $2,057,000 | $1,092,000 | $394,000 | $1,092,000 | ($807,000) | $154,000 | ||||||||
Acquisition of equity interest | 803,000 | 803,000 | |||||||||||||||||||||
Capital contribution by noncontrolling shareholders | 48,000 | 48,000 | |||||||||||||||||||||
Acquisition of equity interest from noncontrolling interest | -1,065,000 | -307,000 | -307,000 | -758,000 | -758,000 | ||||||||||||||||||
Foreign currency translation adjustment | -2,000 | 12,000 | -1,000 | 1,000 | 1,000 | -1 | 4,000 | -2,000 | 3,000 | -4,000 | 7,000 | 10,000 | -3,000 | -5,000 | |||||||||
Net income (loss) | -422,000 | -1,071,000 | -16,000 | -9,000 | -5,000 | -6,000 | 9 | -419 | -42,000 | 68,000 | 75,000 | 74,000 | 78,000 | -506,000 | -748,000 | -46,000 | |||||||
Balance at the end of the period | 2,175,000 | 1,861,000 | 18,000 | 40,000 | -362,000 | -357,000 | 393 | 221 | 2,213,000 | 2,135,000 | 464,000 | 419,000 | -1,303,000 | -597,000 | 752,000 | ||||||||
Percentage of equity interest owned by third-party shareholder | 30.00% | ||||||||||||||||||||||
Ownership interest acquired (as a percent) | 49.00% | 49.00% | 34.00% | ||||||||||||||||||||
Cash consideration | 398,000 | 2,450,000 | 328,000 | 2,040,000 | |||||||||||||||||||
Reduction of noncontrolling interest | 1,065,000 | 307,000 | 307,000 | 758,000 | 758,000 | ||||||||||||||||||
Ownership percentage | 70.00% | 100.00% | |||||||||||||||||||||
Increase (decrease) of noncontrolling interest in additional paid-in capital | $803,000 | ($726,000) | $92,000 | $430,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (CNY) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
item | |
Commitments and contingencies | |
Number of claims | 11 |
Settled litigation | |
Commitments and contingencies | |
Number of claims concluded | 9 |
Number of claims lost | 2 |
Number of claims withdrawn | 7 |
Pending litigation | Remaining litigations that outcome can be estimated | |
Commitments and contingencies | |
Estimated loss | 4.6 |
Loss contingency maximum exposure | 7.6 |
Accrual for contingency liabilities | 3 |
Number of remaining legal proceedings | 1 |
Pending litigation | Remaining litigations that outcome cannot be estimated | |
Commitments and contingencies | |
Loss contingency maximum exposure | 2.6 |
Accrual for contingency liabilities | 0 |
Minimum | Settled litigation | |
Commitments and contingencies | |
Settlement amount | 0 |
Maximum | Settled litigation | |
Commitments and contingencies | |
Settlement amount | 0.3 |
RELATED_PARTY_BALANCES_AND_TRA2
RELATED PARTY BALANCES AND TRANSACTIONS (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Related party balances and transactions | ||
Total amounts due from the related parties | $1,416 | $510 |
Amounts due to related parties | 5,586 | 5,886 |
Number of cinemas in operations | 2 | |
Wuhan Lianzhong | ||
Related party balances and transactions | ||
Amounts due to related parties | 784 | |
Wuhu Bona | ||
Related party balances and transactions | ||
Total amounts due from the related parties | 11 | 156 |
Sanya Bona | ||
Related party balances and transactions | ||
Total amounts due from the related parties | 3 | |
Shui Shang Quan Jing | ||
Related party balances and transactions | ||
Total amounts due from the related parties | 1,100 | |
Period within which the leasehold improvement projects are expected to be completed | 12 months | |
We Distribution | ||
Related party balances and transactions | ||
Total amounts due from the related parties | 256 | 295 |
Nongken Group | ||
Related party balances and transactions | ||
Total amounts due from the related parties | 49 | 55 |
Tianjin Nongken Group Real Estate Development Co., Ltd. | ||
Related party balances and transactions | ||
Total amounts due from the related parties | 1 | |
Amounts due to related parties | 2,555 | 2,105 |
Tianjin Nongken Group Culture Investment Co., Ltd. | ||
Related party balances and transactions | ||
Amounts due to related parties | 1,579 | 1,541 |
Film Workshop | ||
Related party balances and transactions | ||
Amounts due to related parties | 695 | 685 |
Hubei Film Distribution | ||
Related party balances and transactions | ||
Amounts due to related parties | 456 | 463 |
Hunan Xiaoxiang | ||
Related party balances and transactions | ||
Amounts due to related parties | 245 | 248 |
Beijing Xinliliang | ||
Related party balances and transactions | ||
Amounts due to related parties | 56 | 57 |
Mr. Guoqiang Lu | ||
Related party balances and transactions | ||
Amounts due to related parties | $3 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
item | ||
SEGMENT INFORMATION | ||
Number of operating segments | 4 | |
Segment Information | ||
Revenues | $201,504 | $106,574 |
Cost of revenues | -114,050 | -56,955 |
Film participation expenses | -11,856 | 537 |
Equity in earning of equity method investment, net of tax | 3,328 | |
Segment profit | 78,926 | 50,156 |
Film distribution | ||
Segment Information | ||
Revenues | 141,580 | 47,768 |
Film investment and production | ||
Segment Information | ||
Revenues | 491 | 12,227 |
Film participation expenses | -11,856 | 537 |
Equity in earning of equity method investment, net of tax | 3,328 | |
Talent agency | ||
Segment Information | ||
Revenues | 541 | 486 |
Movie theaters | ||
Segment Information | ||
Revenues | 58,892 | 46,093 |
Movie theaters | Admissions | ||
Segment Information | ||
Revenues | 49,330 | 38,409 |
Movie theaters | Concessions | ||
Segment Information | ||
Revenues | 5,610 | 4,573 |
Movie theaters | Advertising | ||
Segment Information | ||
Revenues | 1,991 | 1,406 |
Movie theaters | Others | ||
Segment Information | ||
Revenues | 1,961 | 1,705 |
Operating Segment | ||
Segment Information | ||
Cost of revenues | -114,050 | -56,955 |
Segment profit | 78,926 | 50,156 |
Operating Segment | Film distribution | ||
Segment Information | ||
Cost of revenues | -97,263 | -34,760 |
Segment profit | 47,258 | 14,187 |
Operating Segment | Film investment and production | ||
Segment Information | ||
Cost of revenues | -42,551 | -29,136 |
Segment profit | -3,321 | 9,000 |
Operating Segment | Talent agency | ||
Segment Information | ||
Cost of revenues | -25 | |
Segment profit | 516 | 486 |
Operating Segment | Movie theaters | ||
Segment Information | ||
Cost of revenues | -24,419 | -19,610 |
Segment profit | 34,473 | 26,483 |
Intersegment elimination | ||
Segment Information | ||
Revenues | -50,208 | -26,551 |
Cost of revenues | 50,208 | 26,551 |
Intersegment elimination | Film distribution | ||
Segment Information | ||
Revenues | 2,941 | 1,179 |
Intersegment elimination | Film investment and production | ||
Segment Information | ||
Revenues | $47,267 | $25,372 |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Reconciliation from consolidated segment profit to consolidated financial statements | ||
Consolidated segment profit | $78,926 | $50,156 |
Selling and marketing expenses | -20,530 | -10,231 |
General and administrative expenses | -45,047 | -36,323 |
Government subsidies | 1,876 | 1,662 |
Net interest and exchange gain | -967 | -253 |
Interest income from loan to a producer of TV series | 10 | |
Other income | 277 | 213 |
Income (loss) before income tax and equity in earnings of equity method investments, net of tax | $14,545 | $5,224 |
SEGMENT_INFORMATION_Details_3
SEGMENT INFORMATION (Details 3) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Geographical information | ||
Total | $201,504 | $106,574 |
PRC | ||
Geographical information | ||
Total | 197,323 | 101,123 |
Other countries | ||
Geographical information | ||
Total | $4,181 | $5,451 |