According to latest statement issued by Sim Leisure, Sim Leisure Partnership With Guangzhou Daxin To Secure Reputation in Theme Park Business.
Sim Leisure Group Ltd (“Sim Leisure” or the “Company“, and together with its subsidiaries, the “Group“) is pleased to announce the signing of a Cooperation Agreement (the “Agreement“) with China-based Guangzhou Daxin Water Park Equipment Co. Ltd (“Guangzhou Daxin“), which marks a significant development of the Group’s history that will see the Company monetizing its renowned name in the theme park industry through a partnership with Guangzhou Daxin.
The Agreement will grant Guangzhou Daxin the right to use “Sim Leisure” as the name to secure theme park design and building contracts within China and the ASEAN region in return for a 5% royalty payment to the Company’s 60%-owned subsidiary, Sim Leisure Creative Pte Ltd (“Sim Leisure Creative“). The remaining 40% shareholding interests in Sim Leisure Creative are held by (i) Mr. Wesley James Rae (30%), the former non-executive non-independent director of Sim Leisure; and (ii) Ms. Josie Booth (10%), who was a senior manager with the Company prior to its listing since 2013.
Founder Sim Choo Kheng of the “Sim Leisure” brand built his career in the theme park management consultant industry in 1993 before moving into design and contracting. Over the years, he propagated the “Sim Leisure” name through his involvement in over 100 major projects worldwide, including Lost Paradise of Dilmun in Bahrain, Ski Egypt in Cairo, Legoland in Denmark & Malaysia, Universal Studios in Singapore, Aquapolis in Bulgaria, Motiongate Park in Dubai and Yas Waterworld in Abu Dhabi.
Mr. Sim’s forays in the international arena have established “Sim Leisure’“s brand as a renowned theme park design and contracting company with a long track record of performance and excellence.
Guangzhou Daxin is one of the biggest waterpark designers, equipment suppliers and contractors in China with a turnover of USD50 million at its peak in 2016. Founded in 2000 by Mr. Tian Gaoqi, it has a 100,000m2 manufacturing facility in the Guangzhou Qingyuan Industrial Zone, China.
The potential in China is considerable based on statistics in 2017 that indicated over half a billion Chinese visited an amusement park. Amusement park spending in China is forecast to surpass US$6 billion by 2019. This makes China the world’s fastest growing market.[1] A research report on Chinese theme parks stated that 64 new parks were expected to be established between 2015 and 2020, with a total investment of about US$24 billion.[2] This construction trend is set to continue as a wealth of opportunities for domestic amusement park markets are available. Domestic tourism continues to become more popular in China, as it serves as a symbol of national urban development for many Chinese cities.
The signing of the Agreement represents the synergy between the international experience in designing & building theme parks by Mr. Sim via the “Sim Leisure” brand and Guangzhou Daxin’s manufacturing capacity & local knowledge of the Chinese and ASEAN markets. It will also allow the “Sim Leisure” brand to leverage on its solid reputation to earn a steady recurring income from goodwill built over the years of etching its name in the industry.
Mr. Sim said “I have put in blood, sweat and tears over the decades to build this business to the point of being recognized as the only renowned theme park design & contractor from Asia. I have waited for the right moment to enter China and the ASEAN market. We are ready for the next stage of growth with our new partner Guangzhou Daxin Group, capitalizing on our common business philosophy of providing Asian business economics with a global approach in our creativity.”
Wilson Wu, CEO of Guangzhou Daxin, said, “We see an increasing demand for world-class design and execution of theme parks in China, which in the past had to rely on foreign expertise. Teaming up with Sim Leisure Group means Guangzhou Daxin is now an international theme park solution provider operating locally, which gives us a tremendous competitive edge. We are very excited to tap into this booming market.”
SOURCE Sim Leisure Group Ltd
