NANPING, China - Golden Heaven Group Holdings Ltd. (NASDAQ:GDHG), a Chinese amusement park operator, announced Monday a new collaboration with Nanping City Dacheng Culture Communication Co., Ltd. This agreement, starting March 29, 2024, allows Dacheng Culture to lease land and properties from Golden Heaven for various cultural and celebratory events such as wedding and family photography, and Hanfu photography, a traditional Chinese clothing style.
According to the terms of the Agreement, Dacheng Culture will pay Golden Heaven a total lease amount of RMB6 million, spread out in quarterly payments, through the duration of the contract ending on March 28, 2025.
Golden Heaven CEO and Chairman Mr. Jin Xu expressed optimism about the partnership, highlighting the company's strategy to enhance park utilization and strengthen customer relationships. The addition of Dacheng Culture's activities is anticipated to attract more visitors and enrich the guest experience, potentially boosting Golden Heaven's revenue streams.
Golden Heaven operates six amusement parks across southern China, offering a variety of attractions and experiences to an accessible population of approximately 21 million people. Despite the temporary closure of one park since September 30, 2023, the company continues to provide a range of entertainment options, from thrilling rides to high-tech facilities.
This collaboration follows a similar agreement made on March 19, 2024, with Zigong City Dragon Culture & Arts Co. Ltd., as Golden Heaven seeks to leverage its properties beyond traditional amusement park activities.
Investors are advised that this press release contains forward-looking statements that involve risks and uncertainties. The company's actual results may differ from its expectations and it undertakes no duty to update these statements. The information is based on a press release statement from Golden Heaven Group Holdings Ltd.
InvestingPro Insights
In light of the new collaboration between Golden Heaven Group Holdings Ltd. (NASDAQ:GDHG) and Nanping City Dacheng Culture Communication Co., Ltd., it's pertinent to consider the financial health and market performance of Golden Heaven. As per InvestingPro data, the company has a market capitalization of 23.7 million USD and is currently trading at a low Price / Book multiple of 0.39, which could indicate that the company’s assets are potentially undervalued in the market.
The company's gross profit margin stands at an impressive 60.76% for the last twelve months as of Q4 2023, reflecting a strong ability to control costs relative to revenue. This financial metric is particularly relevant as the company seeks to enhance park utilization and potentially increase revenue streams through strategic partnerships. Additionally, Golden Heaven has been profitable over the last twelve months, which may provide some reassurance to investors concerned about the company's financial viability.
However, investors should note that the stock has experienced significant price volatility, with a 6-month price total return of -94.12% and a 1-year price total return of -88.58%. This could signal a level of risk that may need to be considered. For those interested in a deeper analysis, there are additional InvestingPro Tips available, such as insights into the company's cash burn and valuation implications on free cash flow yield. To explore these in detail, visit the company's page at InvestingPro. Also, don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With a total of 12 additional InvestingPro Tips listed for Golden Heaven Group Holdings Ltd., investors are encouraged to consider these insights as part of their comprehensive investment research.
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