China Animation Group (Holding) Ltd. is said to be earmarking a total of 176 million yuan in capital expenditure for the indoor theme park “Joypolis” that the company operates under a deal with Japan’s Sega Corp.
Chief executive Zhuang Xiangsong outlined the plans after Joypolis opened in Shanghai on New Year’s Eve, the Hong Kong Economic Journal reported Monday.
China Animation Group, which will soon list in Hong Kong, is developing Joypolis in two phases following an agreement with Japanese electronic game maker Sega.
The second phase will be launched some time around the Chinese New Year in 2016. Entry fee in the two phases will be about 100 yuan and 200 yuan each.
The project is expected to take about 30 to 40 months to break even.
China Animation is required to pay Sega only for intellectual property rights, and not royalty fees from the revenues it generates.
A Chow Tai Fook Group unit is said to be investing US$5 million in China Animation Group as a cornerstone investor before the initial public offering.
Sega, however, does not have any plan yet to buy a stake in the mainland firm, a company executive in Shanghai was quoted as saying.
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