Core Viewpoint - Songcheng Performance Development Co., Ltd. plans to acquire 100% equity of Hangzhou Songcheng Industrial Co., Ltd. from its controlling shareholder, Hangzhou Songcheng Group, for approximately 963 million RMB, aiming to enhance the operational scale and synergy of its scenic area [1][2][4]. Group 1: Transaction Details - The acquisition will make Songcheng Industrial a wholly-owned subsidiary of Songcheng Performance, consolidating its financials [2]. - The transaction is classified as a related party transaction since Songcheng Group is the controlling shareholder [3]. - Songcheng Industrial's main assets include land use rights of 92,431 square meters and buildings totaling 94,291.33 square meters, primarily leased to the scenic area for parking and operations [3]. Group 2: Strategic Importance - The acquisition will allow the company to expand the scenic area from 67 acres to approximately 200 acres, significantly increasing visitor capacity and operational space [5][6]. - The new scenic area will enhance the visitor experience by offering more diverse performances and interactive content, addressing the current limitations in land and product offerings [5][6]. - The expansion is expected to reverse the declining trend in visitor numbers and revenue, enabling the company to transition from a single scenic area to a comprehensive cultural tourism cluster [5][6]. Group 3: Historical Context and Future Outlook - Songcheng Scenic Area has received over 110 million visitors since its opening in 1996 and has hosted nearly 39,000 performances, making it a leading cultural theme park [5]. - The company faces challenges due to land resource constraints, which have limited its ability to innovate and expand its offerings, particularly in response to increasing competition [5]. - The acquisition is seen as a necessary step to enhance the company's competitive position and operational efficiency in the cultural tourism sector [4][6].