Songcheng Performing Arts continues to expand and perform brilliantly, domestic theme park competition has become heated

In 2016, revenue was 2.644 billion yuan, a year-on-year increase of 56.05%, and net profit attributable to shareholders of listed companies was 902 million yuan, a year-on-year increase of 43.1%. As the number one performing arts company in China, Songcheng Performing Arts 'continuous expansion in recent years has brought "beautiful" performance.

Original title: Competition in the cultural and tourism industry is fierce. Songcheng Performing Arts 'road of "off-site replication and expansion" continues

to achieve revenue of 2.644 billion yuan in 2016, a year-on-year increase of 56.05%. The net profit attributable to shareholders of listed companies is 902 million yuan, a year-on-year increase of 43.1%. As the number one performing arts company in China, Songcheng Performing Arts 'continuous expansion in recent years has brought "beautiful" performance.

While theme parks are regarded as a sunrise industry and continue to be popular in the capital market, domestic theme parks are also experiencing explosive growth. Among them, in 2017, many theme park concepts, including Huaqiang Fonte and Songcheng Performing Arts, have been listed. Companies have continuously launched large financing plans to accelerate the layout of the domestic market.

It is worth noting that in recent years, a large amount of funds have poured in from cultural and tourism industry projects. However, with the implementation of new projects in various industries, it has also left the outside world with more thought. Just a week ago, Hong Kong Disneyland released data saying that the park had suffered losses for the second consecutive year, with a net loss of HK$171 million for the 2016 fiscal year.

As one of the leading stocks in the domestic cultural and tourism industry, after Songcheng Performing Arts '4 billion yuan fixed increase plan was announced, the capital market reaction was not satisfactory, and its share price fell more than 5% that day.

Expansion has continued over the years.

According to the fixed increase plan in March, Songcheng Performing Arts plans to issue no more than 190 million shares, and the total amount of funds raised will not exceed 4.017 billion yuan, all of which will be used for the expansion of tourism projects. Among them, the Legendary Kingdom of Australia project is Songcheng Performing Arts 'first overseas theme park project. The project has a total investment of 2.021 billion yuan, and the planned use of raised funds is 1.615 billion yuan. The construction period is three years.

The reporter noticed that Songcheng Performing Arts started in Songcheng, Hangzhou, and its promotion in other places had been repeatedly questioned before. According to public information, in December 2010, Songcheng Performing Arts was officially listed on the Shenzhen Stock Exchange, becoming the "first stock of China's cultural performing arts." Immediately, the company began to promote "cultural performing arts"+ theme parks across the country. In 2013, the Sanya project opened. In 2014, the Lijiang and Jiuzhaigou projects were unveiled one after another, initially establishing an offline performing arts network covering the country's first-line tourism and leisure destinations.

According to the 2014 annual report, in the "2013 Global Theme Park Survey Report" ranking jointly released by TEA, an authoritative organization in the international theme park and attraction industry, and AECOM, a consulting group, Songcheng Scenic Area jumped to first place in the mainland of China and tenth place in the Asia-Pacific region, and is known as the most popular theme park in the country; In 2015, the company also began to try the asset-light and acquisition model. It successively controlled Jiuzhaigou's "Tibetan Mystery", acquired Fuzhou tourism and performing arts assets, and completed the Tai 'an project with an asset-light expansion model.

At the same time, in 2016, Songcheng Performing Arts further accelerated its expansion and signed a strategic cooperation framework agreement with Zhangjiajie City; at the same time, it started a light asset-based operation model of Songcheng Performing Arts management export, brand export, and creative export in Ningxiang County, Changsha City.

On April 6, 2017, Songcheng Performing Arts and the Xi'an Qujiang Daming Palace Relics Area Protection and Reconstruction Office officially signed a project cooperation agreement in Xi'an, planning to invest 700 million yuan to build the "Xi'an Eternal Love Scenic Area" project in the Daming Palace Relics Park. Tailor-made a large-scale performance of "Xi'an Eternal Love".

Data shows that at present, Song City performances have been replicated in other places, forming 50 major performing shows including "Song City Eternal Love" and "Sanya Eternal Love". However, while the above-mentioned market expansion, Songcheng Performing Arts 'historical replication model in first-tier and second-tier tourist destinations does not seem to be satisfactory.

Songcheng Performing Arts '2016 annual report shows that due to specific location and cooperation methods, Songcheng Performing Arts decided to terminate the Taishan Grand Theater hosting contract and the Wuyishan project. It is understood that due to the location of the Wuyishan project far away from the core scenic spots, and according to the annual report of the Taishan Project, the revenue of Taishan Qiangu Qing Theater in 2016 only accounted for 0.14% of the total revenue, and its revenue has been at a low level of 3.6025 million to 3.612 million for two consecutive years.

Domestic theme park competition is fierce.

Although it has a unique performing arts + theme park model, Songcheng continues to have strong rivals in the process of expanding in other places.

From the perspective of the cultural and tourism industry, in the past two years, the domestic theme park market has begun to exert strong strength, and competition has intensified. On the one hand, foreign brands have rushed to the China market. Disney has settled in Shanghai, Six Flags Group has built Shanshui Town, and Merlin has operated the Lego Discovery Center. They are on the verge of seizing the China market on a large scale; on the other hand, China companies such as Songcheng and Huaqiangfangte have expanded their layout, hardware addition, and marketing promotion, and chased and blocked them from all aspects.

Lin Huanjie, president of the China Theme Park Research Institute, told reporters that Songcheng, as a unique cultural tourism enterprise, relies on its brand to cooperate with the local government can be called a model model for domestic theme parks.

But similarly, Songcheng also encountered many industry problems in its development: First, high-quality cultural and tourism products cannot be effectively combined with local resources. How to determine the development direction according to local conditions must be considered comprehensively by enterprises and local governments to reduce investment from the source. The possibility of failure. In addition, homogeneous competition is also a problem faced by many pioneering large companies.

The "China Theme Park Market Investment Analysis and Outlook Forecast Report from 2016 to 2020" released by China Investment Consulting pointed out that since China joined the WTO, the tourism industry has begun to compete directly with foreign rivals-from allowing foreign investment from my country's travel agencies to investing in our tourist attractions by foreign tourism groups.

According to Zero Point survey statistics, after several bankruptcies in the past 30 years, there are still nearly 3000 theme parks across the country, of which 70% are at a loss, 20% are flat, and only about 10% are profitable.

Editor: Nancy