Songcheng Performing Arts recently responded to the Shenzhen Stock Exchange’s inquiry on whether “the company’s total profit to double or triple in the next few years” constitutes a performance commitment，Indicates that this is only the company’s development plan based on the current operating status，But it can be found from the reply letter from Songcheng Performing Arts，The future scale will reach 15 theme parks and 20 large-scale performance projects，Perhaps this is the source of confidence for Songcheng’s total performing arts profits to double。But judging from the revenue structure and current business layout of Songcheng Performing Arts，The pressure from capital flow cannot be ignored either。

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Inquiry from Shenzhen Stock Exchange，Let Songcheng Performing Arts give a more detailed explanation of the next development plan，Although "the company's total profits will double or triple in the next few years" does not constitute a performance commitment to all shareholders，But it can be used as a development 188bet Online Sports Betting and Casino vision，Songcheng performing arts also require a large number of project operations as support。

The projects currently being operated by Songcheng Performing Arts mainly include independent investment projects in Hangzhou、Sanya、Lijiang、4 Eternal Love Performances and Theme Parks in Jiuzhaigou，And the light asset export project Ningxiang Tanhe Ancient Town，Supporting the company’s development。From the Songcheng Scenic Area in Hangzhou to the four-city chain expanded to other places、Light asset projects and Internet performing arts platform，In the next step, construction has started and the contract has been signed to land in Guilin、Xi’an、Zhangjiajie、Shanghai、Australia、Xitang、Longquan Mountain Project，and Yichun、Foshan and Xinzheng light asset export projects, etc.，The total size of the company will reach 15 theme parks and 20 large-scale performance projects。

Song Cheng’s acting performance，The total number of tourists in the locations of the 4 projects currently in operation is 2.2.7 billion people，Judging from the number of tourists received by various places in 2017，The second round of independent investment expansion projects are located in first-tier tourist destinations and first-tier cities with greater market potential than the currently operating projects，The total number of tourists in the second round of project locations is 6.8.2 billion people，Three times the total number of tourists received by the original four project locations。No matter the number of projects or the number of tourists，Obviously, they have provided great confidence in the subsequent development of Songcheng’s performing arts。

Internet entertainment grabs the limelight

The current business of Songcheng Performing Arts is mainly divided into live performances、188bet Online Sports Betting and Casino Three major sectors of Internet performing arts and tourism and leisure。Among them,The live entertainment business mainly includes Eternal Love series performances and theme park clusters;Internet performing arts is the Internet performing arts business engaged in by Liujianfang;The tourism and leisure service business refers to the management output carried by Songcheng Tourism、Brand output、A light-asset operation model and online sales platform for creative output。Songcheng Performing Arts did not mention much about the Internet performing arts sector in its reply to the Shenzhen Stock Exchange，However, the performance of this sector in recent years has been really impressive。

March 2015，Songcheng Performing Arts announced that it plans to price 2.6 billion yuan，Acquisition of 100% equity of Liujianfang，Formally involved in the Internet entertainment sector。According to Songcheng Performing Arts’ annual report data，Songcheng Performing Arts achieved operating income of 26 in 2016.4.4 billion yuan，An increase of 56 compared with the same period last year.05%；Net profit attributable to shareholders of listed companies9.0.2 billion yuan，An increase of 43 compared with the same period last year.1%。Among them，Internet performing arts business achieved operating income 10.900 million yuan，The proportion of operating income is 41.23%。The company achieved operating income of 30 in 2017.200 million yuan，14% increase compared to 2016.36%;Net profit attributable to shareholders of listed companies is 10.6.8 billion yuan，18 year-on-year increase.32%。Among them，Live entertainment business revenue is 1.5 billion yuan，9 year-on-year increase.42%；Internet performing arts business revenue is 12.400 million yuan，13 year-on-year increase.75%。

In the opinion of 188bet online sports betting investment analyst Huang Xin，In 2016, Internet performing arts business accounted for 41% of Songcheng performing arts operating income.23%，41 in 2017.01%，Keep the ratio high，But short-term success does not necessarily mean long-term stable returns，Fierce competition in the Internet live streaming industry，Six Rooms can achieve better profit performance precisely because it happens to be at the center of rapid growth in the industry，As competition intensifies，If there is no core content with differentiated competitiveness，It is difficult to achieve long-term high returns。

The financial burden cannot be ignored

Public data display，Songcheng’s acting performance has been rising from 2013 to 2017，The average annual compound growth rate in the five years is as high as 45.28%，Growing very rapidly，But behind the successful implementation of each project，In fact, strong financial support is needed。

Since June 2016，Songcheng Tourism, a subsidiary of Songcheng Performing Arts, signed a contract for the Tanhe Ancient Town project in Ningxiang County, Hunan，The first asset-light project is behind the scenes，“Asset-light” has become the key word in Songcheng’s entertainment planning layout，In the 2017 performance report，Light asset projects have also become one of the reasons for the continued improvement in operating performance。Compared to the huge initial investment in heavy asset projects，Light asset projects are reducing investment costs、Low risk has advantages in accelerating brand expansion。

But on January 17th，Songcheng Performing Arts announced，The company and Songcheng Group signed the "Xitang China Performing Arts Town Project Strategic Agreement" with the People's Government of Jiashan County and the People's Government of Xitang 188bet sports betting app download Town, Jiashan County，The planned investment amount of the project reaches 20 billion yuan。At the China Tourism Performing Arts Conference held in November 2017，Huang Hongming, CEO of Songcheng Group, also publicly stated，Songcheng Performing Arts’ “Eternal Love” series has two development directions in the future，One is to go to the world，The first overseas project has landed in Australia；The other is to create a performing arts town，will be in the Yangtze River Delta、Pearl River Delta、Layout in 4 places in Beijing, Tianjin, Hebei and Southwest，Each project covers an area of ​​5,000 acres，The entire project investment exceeds 20 billion yuan。

"Songcheng Performing Arts cannot ignore the pressure from capital flow." Huang Xin emphasized，The competition in the “physical paradise + tourism performing arts” market is becoming increasingly fierce，Not only local companies have joined in to share the dividends，There are also internationally renowned theme parks such as Disneyland to compete with each other，For Songcheng Performing Arts，Whether it is to increase total profits or expand business scale，The test has begun。

*thisWen LaiSource: Beijing Business Daily, author: Lu Yang, Wang Jiamin, original title: "Where does Songcheng’s goal of doubling profits from performing arts come from?》.