Leyard signs a 2 billion cultural and tourism business integration and innovation project cooperation agreement
Leyard (300296) announced that on August 9, 2016, the company and the People's Government of Wushan County, Chongqing signed the "Cooperation Agreement on Cultural, Tourism and Business Integration Innovation Projects". The two parties will cooperate to invest in the Wushan County Culture, Tourism and Business Integration Innovation Project in Jiangdong, Wushan County's Zaoyang Tourism New City. The total project investment is 2 billion yuan.
The announcement shows that the above-mentioned project construction includes an original explosive tourism performing arts 4.0 urban theme show, a large-scale urban space sound and light show, and innovative interactive experience business clusters around cultural experience, health care consumption, parent-child education, leisure and entertainment, etc., using innovations in cultural experience methods and consumption formats to achieve the perfect integration of public space, cultural space, tourism space, and commercial space.
The project partners plan to cooperate in the construction of the project according to the PPP model. Leyard will be responsible for the investment in the project's operating formats, and the quasi-operating formats and non-operating formats will be invested by the entity designated by the People's Government of Wushan County, Chongqing City. The investment from both parties (excluding municipal public facilities) will be coordinated and arranged by the project construction entity (SPV) according to the goal of repaying principal and interest in 20 years. The specific cooperation model shall be subject to the PPP cooperation agreement formally signed by both parties.
Leyard said that the total investment of 2 billion yuan in the cooperation agreement is the total investment of the Wushan County People's Government of Chongqing. The amount of investment and services the company will participate in has not yet been determined, and the government project execution cycle is long. The implementation of this cooperation will have a positive impact on the company's operating performance in 2016 and subsequent years, but there is uncertainty about the amount of performance impact.
The company also stated that the cooperation content of the above-mentioned agreement reflects the company's strategic positioning of "building a happy city with the government" and is conducive to the company's development of the cultural tourism industry, the expansion of the business scale of the cultural sector, and the enhancement of the influence of urban cultural tourism.
ANNA