China Life, Nanjing Yuda Acquire Lake Songhua Ski Resort for $41M
China Life Insurance Company and Nanjing Yuda Real Estate Development have jointly acquired Lake Songhua Ski Resort in Jilin province for 300 million yuan. Meanwhile, China Travel International Investment is set to acquire Beijing Wanbingxue Sports for 5 million yuan. Notably, China Vanke plans to sell its operations of the ski resort to China Travel International Investment.
The ski resort, located in northeastern China's Jilin province, is one of the country's top ski regions. The acquisition aligns with China Travel International Investment's strategy to expand into the snow economy, which has seen rapid growth with 26 million skier visits in the past year. The deal could help boost the company's scenic revenue, which declined in the first half of the year.
China Vanke's decision to sell comes amidst a challenging period for the company. Its shares have lost over 80% of their value from a 2018 all-time high. In August, Fitch Ratings downgraded the company's long-term issuer default ratings due to liquidity weakening. The sale includes 100% ownership of Jilin Songhua Lake International Resorts for 295 million yuan ($41 million).
This acquisition is not an isolated incident in China's winter sports industry. In 2019, Anta Sports, a Chinese sportswear maker, acquired Europe-based Amer Sports, also eyeing winter sports growth.
The acquisition of Lake Songhua Ski Resort by China Life Insurance Company, Nanjing Yuda Real Estate Development, and the subsequent sale to China Travel International Investment reflects the growing interest and potential in China's winter sports industry. Despite challenges faced by China Vanke, the company's strategic move could benefit all parties involved, contributing to the expansion of the snow economy.
