Core Viewpoint - Songcheng Performing Arts Development Co., Ltd. plans to acquire 100% equity of Hangzhou Songcheng Industrial Co., Ltd., which will significantly expand the Songcheng scenic area from 67 acres to approximately 200 acres, enhancing its cultural tourism footprint in Hangzhou [2][4]. Group 1: Expansion and Strategic Importance - The acquisition will allow the scenic area to extend its tour route from about 1 kilometer to approximately 4 kilometers, creating a more diverse and immersive experience for visitors [3]. - The new area will focus on enhancing underdeveloped segments such as family-friendly attractions, youth engagement, and AI-driven experiences, thereby upgrading the overall entertainment offerings [3][4]. - This strategic move addresses the current land constraints and positions the company for future growth in content and business models, reinforcing its competitive edge in the cultural tourism sector [4][5]. Group 2: Long-term Growth Potential - The acquisition is seen as a proactive measure to overcome land limitations and to prepare for the implementation of new content and business formats, which is expected to drive long-term growth [3][4]. - By securing a prime location in a highly limited development area, the company is ensuring ample space for future expansion and innovation in its offerings [4]. - The expansion is anticipated to enhance the company's capabilities in content production, IP incubation, and hosting cultural events, thereby providing a solid foundation for revenue growth [4][5].
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