Reported by AASTOCKS on August 30  Sanxiang Co., Ltd (000863.SZ) released its mid-year report on the evening of August 29, 2016. During the first half of this year, the company generated a revenue of RMB 3.996 billion, a 1736.59% increase over the same period last year, and a net profit of RMB 461 million, a 421.51% increase, and planned to pay a dividend of RMB 1 yuan per 10 shares (pre-tax), according to the report. Also worth mentioning is the fact that the company acquired Impression Wonders Arts Development Co., Ltd for RMB 1.9 billion last year, the latter’s offerings include the Impression West Lake show developed by famed director Zhang Yimou. An up-graded version of the show will be staged in front of world leaders during the G20 in Hangzhou. 

Sanxiang Co., Ltd is a Shanghai-based listed company. The company focuses on developing up-scale and sustainable properties in first-tier cities, including Beijing, Shanghai and Shenzhen. In keeping with its development capacity, the company is acquiring land for continuous operation. Sanxiang announced its acquisition of Impression Wonders, one of the most famous and successful art creation, performing and patenting companies in China for RMB 1.9 billion on August 27, 2015 as an effort to diversify. The deal was completed with the registration status changed at the  on May 19, 2016.

The acquisition is the beginning of the company’s expansion into art, culture and tourism. At the same time, Sanxiang plans to leverage the prestige and influence of Impression Wonders for a synergy effect of real estate and culture: commercial properties as tourism facilities and artistically designed communities which are also intelligent, sustainable and hi-tech.

The upgraded Impression West Lake show, intended as a highlight of the G20 summit, will promote the image of Hangzhou in front of international leaders.

According to the official ticketing website, Impression West Lake is the third to the Impression series co-directed by Zhang Yimou, Wang Chaoge and Fanyue. The music was composed by Mr Kitaro with Ms Zhang Liangyin as the lead vocalist. An upgraded version of Impression West Lake, a live performance staged in nature, will be viewed by audience from all over the world during the G20 summit.

Sanxiang said that in the second half of this year, the company would first of all ensure the delivery of the pledged performance by China Eagle Group and Impression Wonders. According to information, Sanxiang acquired a 99% stake in China Eagle Group which promised to generate a minimum net profit of RMB 659.5384 million by December 31, 2016 for the parent company at the time of transaction in 2013. The pledged performance for Impression Wonders, on the other hand, was a minimum net profit of RMB 100 million, 130 million,160 million and 163 million in 2015, 2016, 2017 and 2018 respectively (not counting non-recurring gains and losses).

Business insiders commented that a predicted steady growth in the property market during the second half of this year and the publicity Impression Wonders received as a result of the G20 gala would transform into performances which would exceed expectations.