The Great Wall of China Film and Theater

Business Plan Summary

Overview

Phoenician Industries has executed a letter of intent with the Badaling Tourism Authority to locate a large format screen theater at The Great Wall of China. Located just outside Beijing, Badaling is the most popular entrance to The Great Wall hosting over 5 million annual visitors. A substantial number of the top grossing large format films (IMAX) in history are continuously shown at major tourist destination locations such as the Grand Canyon, the Smithsonian Institute National Air & Space Museum and Niagara Falls.

The Company has been working with Destination Cinemas, a subsidiary of National Geographic, (www.destinationcinema.com) and IMAX Corporation (www.imax.com) to develop a business plan to replicate this highly successful and proven model. In fact, with integrated revenue from syndication and distribution exceeding $300 million dollars, the film Grand Canyon: The Hidden Secrets, may be the most profitable movie ever made.

A destination film at one of the world’s most recognized cultural monuments presents an exceptional and unique investment opportunity. The Great Wall of China is universally acclaimed as a “must see” place in China, attracting more than 5 million annual visitors to our location. It is difficult to visualize a more powerful location for a destination theater, worldwide, that could rival The Great Wall of China. In addition to its long life as an important film attraction that millions will view on-site, research indicates The Great Wall Film will also have an extremely wide international distribution appeal.

Salient Facts

Concept: To develop a major entertainment venue at the Great Wall of China in cooperation with the Peoples Republic of China, IMAX films and a major film producer.

Project: Development of a destination film theater and film for permanent showing at the Great Wall’s most visited location, the Badaling Gate. Approximately a one-hour drive from central Beijing, this attraction is enjoyed by 5 million visitors annually, including heads of state and dignitaries from around the world.

Opportunity: Destination theaters are located in major tourist locations such as The Grand Canyon and Niagara Falls, as well as cultural venues such as the Smithsonian Museum in Washington, DC. Because destination films provide a more in depth story and picture than can be experienced in a short visit, a high percentage of visitors choose to enjoy a wide screen film of the location as a part of their experience. As in the case of the film shown at the Grand Canyon IMAX, a destination film might have a continuous run for decades- something not otherwise imaginable in the film industry. In addition, cross ownership of the theater and film can consolidate theater and distribution revenue to produce net revenue that general circulation films cannot achieve.

Investment: $12,000,000 ($7M Film / $5M Theater, Land & Initial Operations)

ROI: Return of Capital in 3 years, approximately 75% annual return on cost.

Status: Phoenician Industries has an exclusive development right agreement with the Badaling Tourism Development Authority, which is the State Company operating this facility. The Chinese government is in support of the concept, in particular as a 2008 Olympics attraction. Contacts with major sponsors for both the film and theater have been ongoing, and a major film producer has expressed interest in the film. Funding requirements are described in the financial section of the business plan.