an unexpected epidemic has swept the whole country and has impacted chinese tourism, culture and the real estate industry. in such a severe situation, the company’s management believes that the company’s businesses will develop quickly in all sectors in 2020 after the epidemic has been eliminated, and hopes its investors will continue their support the company’s development based on the following four considerations:
i. confidence in the chinese economy even during the epidemic situation
since the outbreak of the epidemic, the party central committee and the state council have been heavily focused on the situation. the party committees, governments, and relevant departments at all levels have taken many measures to actively deal with the epidemic and have formulated strict prevention and control plans. the central bank, the ministry of finance, the securities regulatory commission, and five other ministries and commissions have also jointly launched new measures. these tangible measures are playing a significant role in containing the further spread and impact of the epidemic, and have strengthened public confidence in the fight against the epidemic. we believe that,under the leadership of the cpc and chinese government,we will be able to eliminate the epidemic and that the economy will recover in a short period.
ii. enhancement of the team’s management and business abilities
in 2019, by taking measures such as vigorously training talent, adjusting the organizational structure, and optimizing the management processes, the company has improved the team’s management and business abilitiesand generated extraordinary performance. the company has turned losses into profits this year with profits forecast at 278 million rmb (unaudited).
iii. moderate development of the real estate sector
1. in 2019, with the strong support of the local government, all of the 543 acres of land involved in yanjiao sanxiang impression forest curio sanxiang project have been delivered. in november 2019, the first phase of the project launched and ithas immediately become increasingly popular. in 2020, the company will comprehensively promote the kickoff, construction, and sales of the parcels in the nearly one million ㎡of the project’s building area.
2. topview, a project developed by the company in qiantan, pudong, shanghai, has an area of 54,000 ㎡ for sale. currently, the company is actively applying for a pre-sale license for the project to start sales in 2020.
3. the company achieved a great sales performance in 2019 for a project in shanghai chong ming and another project in hangzhou. the company will continue to advance the delivery and sales of these two projects in 2020.
thus far the company owns sufficient land reserves to meet the needs of project development and sales in recent years. with the acquisition of project pre-sale licenses and the sales progress of new works, the company will gradually absorb its stock so as to realize sufficient and stable cash flow.
iv. rapid development of the cultural tourism sector
1. new project contracts have been consecutively executed. in 2019, impression wonders successfully signed the “impression huashan legend” (tentative title) project. we firmly believe thatin the future we will bring new visual feasts to audiences with our unforgettable ips and professional team.
2. the epidemic has affected those of impression wonders's projects which continued to run during previous spring festivals (the period from december of each year to march of the next year is a rest season for most of impression wonders’s cultural tourism performances impression wonders). we saw that the tourism industry was the hardest hit area during the sars epidemic in 2003, but it was also one of the first sectors to rejuvenate. we are strongly confident that consumer passion will make a comeback after the heavy losses, and the whole tourism industry believes that after the downturn and depression, the demand for tourism consumption will once again blossom, and that services such as tourism, catering, and commerce will flourish once more. we believe that after this cold winter the cultural tourism industry will enjoy a vigorous and warm new spring.
3. the contracted projects that have not yet launched will be advanced on schedule. some of the company's contracted projects, including “home coming, zunyi”, “most memory is shao shan chong”, “impression dianchi”, and “impression tai chi are expected to stably advance on schedule, even though they may be impacted by the epidemic to different extents. the performances are expected to be fully carried out in the near future, bringing new experiences to audiences and new box office shares to the company.
rainbows always appear after a storm. here, sanxiang impression would like to pay respect to the hardworking and dedicated medical workers and to the staff directly fighting against the epidemic in all industries, and we would also like to express our thanks to our investors who have always been there to support us. in the new year, we will move together and overcome all challenges for a new start of the company!
sanxiang impression’ s senior management
february 4, 2020