New Silkroad’s Cultural Tourism Project on Jeju Island Set to Benefit From Strategic Cooperation Between Macrolink and UTour
New Silkroad Culturaltainment Limited (“New Silkroad” or the “Company”) (HKSE: 00472) announced that its substantial shareholder Macrolink Culturaltainment Development Co., Ltd. (“Macrolink”) (SZSE: 000620) has entered into a series of cooperation agreements with UTour Group Co., Ltd. (“UTour”) (SZSE: 002707), a travel services operator in China. As part of the strategic cooperation in developing the overseas cultural tourism value chain, UTour will provide support to the projects co-invested by New Silkroad and/or Macrolink, that includes tourism marketing and promotion, customer channels development, product development, investments and operations.
New Silkroad has obtained a gaming license on Jeju Island, South Korea, through the acquisition of Development Golden Beach Co., Ltd. (“Golden Beach”) and operates a casino at KAL Hotel. In May 2016, the Company formed a strategic alliance with Melco Group to develop its gaming business on Jeju Island. In addition, the Company took control of the Glorious Hill Project by injecting capital into Macrolink Glorious Hill Co., Ltd., (“Glorious Hill”) and will provide the funding necessary for the development of one of the largest integrated resort complexes in South Korea. The project will comprise super five-star hotels, luxurious commercial and residential properties, integrated entertainment complex, healthcare facilities, theme park and golf courses. With the travel resource support by UTour, the project is set to become a favourite destination for Chinese tourists upon completion.
UTour is the first private travel agency listed on the Shenzhen Stock Exchange. It was ranked fourth among the top 100 national travel agencies in 2012 and was rated as a 5A agency in 2013. UTour has been involved in the overseas travel industry for many years. It has acquired a competitive advantage in terms of customer channels in China. As a leading large-scale international travel services operator in China, UTour’s strategic cooperation with Macrolink will help the diversification and boost the marketing and promotion effort of New Silkroad’s offshore cultural tourism projects.
Mr. Paul Ng, Executive Director of New Silkroad, the Chairman of Golden Beach and Director of Glorious Hill said, “The strategic cooperation will offer us access to a vast pool of potential customers from China, laying a solid foundation to the future development of our gaming and cultural tourism projects in Korea and complete the value-chain of our cultural tourism business. We hope to see more future interaction with Macrolink that will generate stronger synergies for our overseas real estate, cultural tourism and gaming projects. Such partnership will certainly drive our business growth and create greater shareholder value in the coming future.”