Extracted from the Annual Report 2023

OVERVIEW

FY2023 marked the Group’s first full year of postpandemic recovery following the easing of strict COVID-19 measures in China in December 2022. With revenue reaching $82.14 million and a net profit of $25.68 million, the Group successfully reversed the losses incurred in FY2022. Despite this achievement, an exchange loss of $1.71 million was recorded due to the weakening of the RMB currency against the Singapore Dollar.

The Group experienced a significant increase in revenue, with our FY2023 revenue increasing 191.3% over that of FY2022. Visitor arrivals to all Group attractions totalled 3.36 million, a substantial increase from FY2022’s 0.96 million, reaching approximately 73% of the pre-pandemic level in FY2019. The recovery in tourism activities in both the China and Singapore markets contributed to this growth. Specifically, the Shanghai Ocean Aquarium witnessed a return of visitors, particularly during golden week holidays and summer school holidays, indicating a strong recovery in domestic tourism in Shanghai. Similarly, Underwater World Xiamen saw a remarkable 97% year-on-year increase in visitor numbers. Additionally, visitor arrivals to the Singapore Flyer increased as international tourist arrivals continued to recover, and pre-pandemic operating hours resumed since July.

The Group’s operating assets during FY2023 included:

• Shanghai Ocean Aquarium (SOA), situated in the Lujiazui Financial District of Pudong, Shanghai.
  
  
• Singapore Flyer, one of the world’s largest observation wheels located in the Marina Bay Precinct, Singapore.
  
  
• Underwater World Xiamen (UWX), located on the scenic Gulangyu Island in Xiamen City.
  
  
• Lixing Cable Car (LCC), a cable car service at the historic Mount Lishan in Xi’an.

In FY2023, Shanghai Ocean Aquarium (SOA), the Group’s premier attraction, demonstrated substantial financial growth compared to the previous year, primarily driven by a significant surge in visitor numbers, which increased over five-fold. Notably, this surge occurred without the extended closures experienced in the second quarter of FY2022. To stimulate the return of visitors in 2023, SOA executed various strategic marketing initiatives during key festivals. For example, during the Spring Festival celebrating the Year of the Rabbit, SOA launched a captivating Rabbit-themed aquatic biology science exhibition titled “Where Are the Magical Rabbit Fishes (神奇的兔 鱼在哪里)?” This exhibition, complemented by online night promotions and exploration activities, resulted in an 88.6% increase in visitor arrivals and an 85.6% surge in revenue compared to the Spring Festival period of 2022. Subsequently, during other holiday periods such as Labour Day and the summer season, SOA continued to engage visitors through interactive activities and popular science sessions held in the newly renovated marine classroom. These activities, including the “Launch of the New Marine Classroom (新海洋教 室欢乐开幕)”, “DiDi Science Class (迪迪科普课堂)”, “DiDi Mini Lessons (迪迪微课堂)”, and “DiDi Touchpool Class (迪迪触摸小课堂)”, were well-received, contributing to increased publicity through various social media platforms such as the SOA website, SOA official WeChat account, Douyin (抖音), and Ctrip.

The collaboration between SOA and Ctrip’s platform further enhanced exposure and market competitiveness, particularly during peak public holidays such as the National Day golden week, where a themed exhibition titled “An Adventure into the Mysterious World of Starfish (星海奇遇，探寻海星的神秘世界)” led to a 74% increase in visitor numbers compared to the corresponding period of the previous year. Additionally, SOA maintained its commitment to corporate social responsibility by conducting “My Green” environmental conservation activities during the Christmas and New Year period and arranging visits for children with special needs throughout the year.

Meanwhile, at Underwater World Xiamen (UWX), annual visitor numbers surged by approximately 97% compared to 2022, despite facing challenges from competitors and lower visitor numbers to Gulangyu Island. UWX’s strategic initiatives included hosting four large-scale science-themed exhibitions - “A popularization science exhibition on rabbitfish (兔飞 猛进 - 兔鱼科普主题特展)”, “Fishes are different; A two-part series exhibition (趣味科普主题展 - 鱼众不同 2)”, “The heroic whale; A special exhibit on cetaceans and dolphin (鲸国英雄 - 鲸豚科普主题特展)”, and “Have a whale-derful time; A special lunar new year exhibit (“龙咚锵 喜鲸开年”跨年特展)”, throughout the year, along with various educational and promotional events organized in collaboration with scenic venues and relevant entities in Fujian province. Notable among these events were the “2023 National Aquatic Wildlife Conservation Science Popularization Month, Xiamen Station (2023年全国水生野生动物保护科普宣传月(厦 门站)活动)” organized in partnership with the Xiamen Natural Resources and Planning Bureau in November, and the “Great Whale Journey Heritage (大鲸游世 遗)” themed painting event held in collaboration with the Gulangyu Foreign Cultural Relics Museum of the Forbidden City in December 2023. Furthermore, UWX independently orchestrated the “Ocean Odyssey Night - Fishes Slumber with You (鱼你同眠 - 海洋奇妙夜)” event during July to August 2023, attracting 66 children for an immersive overnight experience. UWX also participated in the 2023 China (Xiamen) International Leisure Fisheries Expo to enhance publicity and attract visitors through promotional activities.

Throughout the year, UWX disseminated 127 science-related online posts across various social media and online platforms, driving sales volumes through the OTA platform by revamping its Douyin (抖音) channel, exchanging platform advertising resources, and executing promotional campaigns during the National Day holiday. UWX consistently innovated its marketing strategies to attract visitors, launching initiatives such as the “Whale Joy Card - Non-stop Discounts (鲸喜 购卡, 优惠不停)” promotion, the introduction of selfservice overnight stay activities in collaboration with 启智研学, and participation in initiatives like the “One Ticket Pass” and the promotion of the “1+1” parentchild package on www.meituan.com in July and September respectively.

By 2023 year-end, UWX had actively engaged in organizing and participating in various science-based and academic events, including the “2023 National Science Popularization and Explanation Competition (Xiamen District)” and the “2023 Xiamen Science Popularization (Education) Base Annual Work Conference.” UWX’s continued commitment to science popularization educational and corporate values was evidenced by its participation and third-place win in the “10th Popular Science Volunteer Talent Competition 2023.” Through a combination of online and offline initiatives, UWX continued to advocate for marine conservation and bolster its science education efforts.

Overall, FY2023 marked a period of significant growth and strategic advancement for both SOA and UWX, underscoring their dedication to sustainability, innovation, visitor engagement, and corporate social responsibility.

Lixing Cable Car experienced a notable surge in visitor numbers and reported positive earnings for FY2023, contrasting with the previous year’s net loss. The company maintained its commitment to offering value-added services, such as guided tours by individuals dressed in ancient costumes, aimed at enriching tourists’ understanding of the cultural heritage and historical narratives of Lishan Mountain. Additionally, the provision of pre-recorded audio commentary for tourists further enhanced their experience and satisfaction.

In Singapore, international tourist arrivals reached 70% of pre-COVID-19 levels from 2019, totaling 13.6 million visitors for the year. Starting from July 1st, the Singapore Flyer resumed full operations for 12 hours daily from 10 am to 10 pm, aligning with the gradual reopening of borders and the resumption of travel. This adjustment in operating hours positioned the Singapore Flyer as a preferred destination for both tour groups and individual travelers who arrive in Singapore ahead of hotel check-in times. Despite the challenges, visitor numbers in 2023 reached approximately 65% of the pre-pandemic levels from 2019, with a notable recovery observed in the tour group segment.

The Singapore Flyer received prestigious recognition in 2023, being awarded the Traveller’s Choice Best of the Best accolade by TripAdvisor, reinforcing its status as one of Singapore’s premier attractions and placing it within the top one percent of global attractions. Moreover, the year marked the Singapore Flyer’s 15th anniversary in April, commemorated by the introduction of special promotions tailored for local residents, including a $15 weekday offer and a curated menu of delectable $15 dishes at its Sky View Pavilion restaurant.

In collaboration with Kendo Brands for Fenty Beauty’s brand activation campaign, the Singapore Flyer hosted a media launch event and Fenty x Sephora masterclasses aboard its observation wheel in May.

This partnership transformed two thematic capsules into unique Fenty Beauty experience capsules, enriching the offerings available to guests. Furthermore, as part of the Wellness Festival Singapore organized by the Singapore Tourism Board, the Singapore Flyer reintroduced the “Yoga in the Sky” experience over one weekend in July, catering to wellness enthusiasts.

   

The Singapore Grand Prix (F1) returned to the Singapore Flyer in September, attracting prestigious guests and full bookings at all event venues. Selected passes offered same-day, multi-visit access to the Singapore Flyer and Time Capsule, providing guests with unparalleled views of the circuit during both day and night.

In October, the Singapore Flyer unveiled an enhanced 165 Sky Dining experience, featuring three rotations of 90 minutes each, a specially curated menu, and an exclusive souvenir. This enhancement was wellreceived by guests, supported by positive feedback received via internal channels and online platforms.

In November, the Singapore Flyer collaborated with La Maison du Whisky (LMDW) for its annual international tasting event, Whisky Live, establishing a long-term partnership with LMDW for future events.

Supported by the Singapore Tourism Board’s Experience Step-up Fund, the Singapore Flyer launched the Flyer360 XR mobile app, enhancing the in-capsule experience through augmented reality. Pilot testing yielded positive results, with users praising the app’s functionality and engagement.

In an effort to strengthen its reputation as an iconic destination in Singapore, the Singapore Flyer established its official LinkedIn page, sharing engaging content, attracting talent, and seeking collaborative opportunities within the industry.

FINANCIAL COMMENTARY

The Group reported a net profit before tax of $34.62 million in FY2023, compared to a loss before tax of $11.59 million in FY2022. This turnaround was primarily driven by higher revenue generated from increased visitor numbers to the attractions, offset by higher expenses in line with business volume, exchange losses, and impairment losses on its investment property and property, plant and equipment.

The Group’s net cash inflow from operating activities amounted to $37.13 million, a significant improvement from the net cash outflow of $2.99 million in FY2022. During the year, the Group allocated funds for dividends and loan repayments. As of 31 December 2023, the Group’s cash and cash equivalent balance stood at $169.80 million, marking an approximate 13% increase from the previous year.