Great Wall Movie and Television Co., a listed Chinese entertainment group, announced that it would sell its wholly owned film studio and theme park at RMB 300 million.
Before 2018, movie theme park was a trendy sector that many top film companies, such as Huayi Brothers, Beijing Enlight Media and Wanda Pictures, were eager to tap into. Today, however, Huayi Brothers is slowing down the development and launch of new theme parks, and Wanda Group has just sold its cultural and tourism projects, including the Qingdao Movie Metropolis.
Industry experts point out that Chinese movie companies are becoming increasingly cautious about the theme park business, as it takes a long time to see financial return. In addition, the Chinese real estate market is relatively unstable at the moment, which has also discouraged many companies from investing more in the theme park business.
According to research data from Peking University, only 5% of movie studios and theme parks are able to make a profit. About 15% can breakeven. And the remaining 80% are losing money.
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