Golden Heaven Group Holdings Ltd. Announces Guest Visits Increased During the 2024 Chinese Spring Festival Holiday

Rhea-AI Summary

Golden Heaven Group Holdings Ltd. (GDHG) reports a 28.4% increase in guest visits at its five amusement parks during the Chinese Spring Festival holiday, setting a new attendance record. Tongling West Lake Amusement World saw a 47.9% increase, while Changde Jinsheng Amusement Park experienced a 33.1% rise. Despite a slight dip at Yueyang Amusement World, overall, the company is optimistic about future revenue growth.

Insights

Market Research Analyst

The reported increase in guest visits to Golden Heaven's amusement parks during the Spring Festival holiday is a positive indicator of the company's operational performance. The 28.4% year-over-year growth in park attendance suggests a recovery in consumer confidence and discretionary spending, particularly in the leisure and tourism sector. This growth trajectory can be attributed to effective marketing strategies, consumer behavior post-pandemic and overall economic recovery in China.

However, it's important to note the uneven growth across different parks, with Yueyang Amusement World experiencing a 6.5% decrease. This warrants a closer look into regional market dynamics, competitive pressures and potential operational issues at that specific location. The significant increases at other parks, such as the 76.9% jump in attendance at Qujing Jinsheng Amusement Park, could be due to new attractions, local marketing initiatives, or improvements in accessibility and infrastructure.

For stakeholders, the short-term implications include potential increases in revenue and profitability from higher visitor numbers. In the long-term, sustained growth could lead to expansion opportunities and increased market share. However, it's critical to monitor whether this uptick in attendance can be maintained outside of peak holiday seasons and how it translates into financial performance.

Financial Analyst

The announcement by Golden Heaven Group Holdings Ltd. is a significant one, as attendance figures are a direct driver of revenue for amusement park operators. The 28.4% increase in attendance during a key holiday period could imply a substantial rise in revenue, assuming spending per visitor remains constant or grows. This performance could lead to positive revisions in revenue forecasts and potentially impact the company's stock price positively in the short-term.

Investors should consider the operating leverage inherent in the amusement park business. Fixed costs such as maintenance and staffing are relatively stable, so increased attendance leads to higher margins as additional revenues have a lower incremental cost. It will be essential to analyze the upcoming quarterly financial statements to assess the impact on the bottom line and to understand the cost management efficiency of the company.

It's also important to evaluate the company's forward-looking statements regarding strategies to satisfy guests' evolving needs. These strategies will likely require capital investments and their effectiveness will be a critical factor in the company's ability to capitalize on the current momentum and secure long-term growth.

Economist

The data provided by Golden Heaven on their Spring Festival holiday attendance serves as a microeconomic indicator within the Chinese leisure industry. The reported increase in attendance aligns with broader economic trends of rising consumer spending and the rebound of the tourism sector in post-pandemic China. It also reflects the potential for increased domestic tourism as international travel restrictions continue to influence vacation choices.

From an economic standpoint, the performance of leisure companies like Golden Heaven can serve as a bellwether for consumer discretionary spending, which is a component of overall economic health. The robust attendance figures suggest a positive outlook for related industries, such as retail and hospitality, which benefit from the spillover effects of increased tourism activity.

However, the long-term sustainability of this growth will depend on broader economic conditions, including employment rates, disposable income levels and consumer sentiment. Additionally, the company's ability to adapt to shifts in demand, such as the evolving preferences of Chinese consumers and potential competition from digital entertainment alternatives, will be crucial.

NANPING, China, March 6, 2024 /PRNewswire/ -- Golden Heaven Group Holdings Ltd. (the "Company" or "Golden Heaven") (Nasdaq: GDHG), an amusement park operator in China, today announces that it witnessed an increase in guest visits during the Chinese Spring Festival holiday ("Spring Festival holiday"), from February 10, 2024 to February 17, 2024. Golden Heaven's five amusement parks collectively had approximately 100,362 guest visits. This figure represents an approximately 28.4% increase in park attendance over the corresponding period in 2023, which recorded 78,189 guest visits from January 22, 2023 to January 29, 2023. This sets a new attendance record for Golden Heaven.

Guest visits of each park during Spring Festival holiday:

• Tongling West Lake Amusement World: The number of guest visits was up 47.9% to 22,152, from 14,978 in the corresponding period last year.
• Changde Jinsheng Amusement Park: The number of guest visits was up 33.1% to 20,256, from 15,218 in the corresponding period last year.
• Yueyang Amusement World: The number of guest visits was slightly down 6.5% to 26,309, from 28,144 in the corresponding period last year.
• Yunnan Yuxi Jinsheng Amusement Park: The number of guest visits was up 51.5% to 20,733 from 13,682 in the corresponding period last year.
• Qujing Jinsheng Amusement Park: The number of guest visits was up 76.9% to 10,912, from 6,167 in the corresponding period last year.

A designated officer from the Company, commented, "We are thrilled that our amusement parks welcomed more guests in the Spring Festival holiday, marking a prosperous start to the year of 2024. Moving forward, we plan to continue to devise and carry out strategies to satisfy our guests' evolving needs and interests, which we anticipate will enable stronger revenue growth."

 

 

 

 

About Golden Heaven Group Holdings Ltd.

Golden Heaven Group Holdings Ltd. manages and operates six properties consisting of amusement parks, water parks, and complementary recreational facilities. With approximately 426,560 square meters of land in the aggregate, these parks are located in geographically diverse markets across the south of China and collectively offer approximately 139 rides and attractions. Due to the geographical locations of the parks and the ease of travel, the parks are easily accessible to an aggregate population of approximately 21 million people. Since September 30, 2023, Mangshi Jinsheng Amusement Park, which is one of the six parks, has been temporarily closed. The parks provide a wide range of exciting and entertaining experiences, including thrilling rides, family-friendly attractions, water attractions, gourmet festivals, circus performances, and high-tech facilities. For more information, please visit the Company's website at https://ir.jsyoule.com/.

Forward-Looking Statements

This press release contains "forward-looking statements". Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

For investor and media inquiries, please contact:

Golden Heaven Group Holdings Ltd.
Email: group@jsyoule.com

Ascent Investor Relations LLC
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

 

 

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SOURCE Golden Heaven Group Holdings Ltd.

FAQ

How many guest visits did Golden Heaven Group Holdings Ltd. have during the Chinese Spring Festival holiday in 2024?

Golden Heaven Group Holdings Ltd. had approximately 100,362 guest visits during the Chinese Spring Festival holiday in 2024.

Which amusement park under Golden Heaven Group Holdings Ltd. had the highest increase in guest visits during the Spring Festival holiday?

Tongling West Lake Amusement World had the highest increase in guest visits during the Spring Festival holiday with a 47.9% rise.

What was the percentage change in guest visits at Yueyang Amusement World during the Spring Festival holiday?

Yueyang Amusement World experienced a slight decrease of 6.5% in guest visits during the Spring Festival holiday.

What are Golden Heaven Group Holdings Ltd.'s plans for the future following the increased guest visits during the Spring Festival holiday?

Golden Heaven Group Holdings Ltd. plans to devise and carry out strategies to satisfy guests' evolving needs and interests, anticipating stronger revenue growth.