As the largest derivative animation product, China Animation Group's indoor theme park may be a boon for the company as demand for entertainment on the mainland rises. Provided to China Daily

China Animation Group - a Shenzhen-based company applying for a public offering in Hong Kong - kicked off an indoor theme park, Shanghai Joypolis, in the eastern city's downtown on Jan 10.

Featuring cartoon characters and digital reality games, the 8,000-square-meter animation attraction is a joint venture between China Animation and SEGA Corporation, one of Japan's largest indoor theme park operators. The 175.9-million-yuan ($28.8-million) project can entertain up to 2,400 visitors at a time.

Started in 2007, China Animation focused on trading of derivative products of cartoon industry, mainly toys, featuring third-party owned cartoon characters. Trading of these products is the major profit generator for the company, which focuses on Japanese clients, such as SEGA, Tomy and some outdoor theme parks.

Animation derivative product business counts for 99.3 percent of the company's revenue in the five months ended Aug 31 last year, whereas it contributed 95.5 percent, 88.7 percent and 72.4 percent to revenue in 2012, 2013 and 2014, respectively, the company's prospectus updated on Nov 28 shows.

In the listing document, China Animation vowed to extend its core business to indoor animation amusement parks on the Chinese mainland. Running Joypolis exclusively in Shanghai, the company is said to be the first licensed operator of the amusement park by SEGA in China, the prospectus indicated.

"The theme park is the largest derivative product of the animation industry. It's not only on par with our established core business, but with cross-selling effect, we believe the development of the amusement parks would fuel the growth of our traditional derivative product business too," said Zhuang Xiangsong, founder chairman and CEO of China Animation.

The first phase of the Shanghai project targets teenage girls and women in their 20s as well as family customers with young kids.

It highlights a cosplay photography studio, and a children's amusement club with an aquarium.

Replicating SEGA's studio in Osaka, China Animation vowed to provide the latest photography software and costumes from Japan.

The second phase, scheduled to launch at yearend, will emphasize SEGA designed and manufactured facilities, such as an indoor roller coaster, and highlight virtual interactive experience such as motion capture games.

The company also plans to inject its original animation figures like "Han Ba Gui" and "Violet", an award-winning virtual singer, into the amusement park.

Zhuang stressed that the theme park industry has barely taken off and enjoyed much leeway in China, given the people's growing thirst for recreation and entertainment while getting rich.

"With conservative projections, we expect to break even within 40 months. It may take less time if everything goes well," he said, adding that traffic was in line with expectations at the soft opening, and a second similar park is being planned.

emmadai@chinadailyhk.com

(HK Edition 01/13/2015 page9)