The listed film company signed an agreement in February with the Shanghai Jiading Industrial Zone to build a cultural complex in the area. The project will be primarily used as a film production base, such as Zhejiang Hengdian World Studios.
In May 2011, Huayi Brothers also announced its cooperation with other partners on its first movie-themed park in Suzhou Industrial Park, a project with a total investment of 3 billion yuan ($481 million).
The latest move by the entertainment conglomerate came in May 2012, when it announced its co-investment in a movie-themed commercial zone in Haikou, Hainan province. In this commercial zone, there will be streets and blocks that imitate the cinematic scenes of Huayi Brothers' film productions.
However, although the number of theme parks may have grown in China in recent years, few of them are making money.
Zhao Huanyan, a senior researcher at the Tourism Research Institute under the Shanghai Academy of Social Sciences, said that a total of 150 billion yuan has been invested in more than 2,500 theme parks in China, and 70 percent of them are in deficit, 20 percent are breaking even, and only the remaining 10 percent are making profits.
Creativity and market positioning are the most important elements in successfully running a theme park, and for movie-themed parks, professional support facilities, diverse scenes and competitive pricing are also crucial, added Yang Yanfeng, an associate professor of the China Tourism Academy.
"Blind investment is the biggest reason for the widespread losses. The first investment boom in theme parks took place in the 1990s, while the third boom is currently under way," Yang said.
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