Six Flags Chongqing
Views: 210,249 Subscribe

According to Guancha Syndicate, a Chinese news site, Six Flags Chongqing was eventually taken over by the Chongqing Municipal Government. Riverside Group had only provided operation management and the Six Flags brand. In addition, someone at Riverside Group admitted in an interview that the Chongqing project has indeed transferred part of its equity to State-Owned Assets Supervision and Administration Commission (“SASAC”) of the Chongqing Municipal Government.

Source: https://www.guancha.cn/economy/2020_09_25_566361_3.shtml

First look at what was going to be Six Flags Adventure Park in Chongqing:











The park is described by Six Flags as the following:

For the more daring enthusiasts, Six Flags Adventure Park will be the ultimate in high adrenaline, action-packed thrills. From motocross bicycle races along rugged terrain, to whitewater rafting to zip lining or rock climbing hundreds of feet above the ground, guests will have the opportunity to reach beyond their comfort zone and safely push the boundaries of self-discovery in a beautiful, natural environment. Six Flags innovation will be on full display in the design of the various challenges and attractions throughout the park. Six Flags Adventure Park will be a thrilling new addition to the Six Flags Chongqing entertainment lineup.

Sources: https://investors.sixflags.com/news-and-events/press-releases/2017/10-26-2017-120135094 and https://www.ucmd.com.cn/en/our-projects/

'The Paper', a Chinese news publication, today came out with an in-depth article about Six Flags in China including the history of the developments and the current status of the parks

Here's a couple key points from the article:

- Sunac is confirmed to have taken over the parks in Chongqing as well as the already confirmed parks in Zhejiang.
- At least one unspecified Six Flags park in Chongqing (assumed to be the waterpark which has already begun slide installation) is scheduled to open in 2021.

Source: https://www.thepaper.cn/newsDetail_forward_8040513

WhiteWater slide pieces ready to be installed soon at Six Flags Hurricane Harbor in Chongqing



Source: https://www.instagram.com/p/B_AycwwhkiV/

On April 8 waterslide installation inexplicably began on Six Flags Hurricane Harbor waterpark in Chongqing. It's unclear who is paying for this installation and what the plan is...









Source: https://mp.weixin.qq.com/s/HT3zGjo5saTbC2ZdTi23Lw

Sad photos and a video showing the state of Six Flags Hurricane Harbor waterpark in Chongqing

Video showing the WhiteWater slide pieces sitting in a lot - https://www.weibo.com/tv/v/IxWhGeTnc?fid=1034:4480888612782117

















Source: https://m.weibo.cn/status/4480856736982282

Thanks. It looks like Six Flags will be taking a "one time" loss on the development in their 4th quarter of 2019.

Any idea how much of an investment Six Flags has made thus far? Or is the capital investment all Riverside's and it's a royalty/franchise type arrangement?

We finally have an official statement from Six Flags acknowledging the issues that Riverside is experiencing:

The development of the Six Flags-branded parks in China has encountered continued challenges and has not progressed as Six Flags Entertainment Corporation (the 'Company') had expected. The Company's partner in China, Riverside Investment Group ('Riverside'), continues to face severe challenges due to the macroeconomic environment and the declining real estate market in China. This has led Riverside to default on its payment obligations to the Company and, as such, the Company has delivered formal notices of default under its agreements. While the Company continues to work with Riverside and each of Riverside's governmental partners, the eventual outcome is unknown and could range from the continuation of one or more projects to the termination of all the Six Flags-branded projects in China.

Source: https://otp.tools.investis.com/clients/us/sixflags1/SEC/sec-show.aspx?Type=html&FilingId=13839504&CIK=0000701374&Index=10000

This situation which has been building up throughout 2019 does not only affect Six Flags and Riverside Group but also many ride suppliers. In the future, there is potential for other Chinese developers to take over the in development parks from Riverside and rebrand them to something without Six Flags.

Things seem to not be going so well with Riverside Group, the Chinese developer behind all of these Six Flags parks. Last week, Riverside released a statement addressing the company's status. To paraphrase the statement in English, they first blame a "depressed" real estate market. Then they talk about how some of their upcoming tourism projects are a light asset model, which will benefit Riverside Group long term and help with stability. Next they address the mass layoffs in which they talk about a "transformation" in which they begin to realize that the company has had some problems regarding the staff and management organizational structure. To deal with this they over the course of the past year have been "gradually" "optimizing and adjusting" the company's employee structure which includes "streamlining" which employees are at the headquarters. At the end of the statement Riverside Group expresses optimism for a "bright future".

According to a new article, which is also paraphrased to English here, up to 90% of Riverside Group's employees are or will be laid off and according to tourism industry "experts", Riverside Group is "dying". Riverside Group is facing legal troubles. Among the issues, the company is being taken to court constantly, for instance, a media company hired to make promotional material for the upcoming Six Flags park in Zhejiang was not properly compensated for their services and have taken Riverside Group to court seven times. Former employees of Riverside Group are complaining to reporters about not being fully paid while working there. Executives at Riverside Group are being accused of spending frivolous amounts of money on extravagant ski trips and parties while meanwhile the company has a large loan due for payment next month which will go unpaid and become overdue.

Sources: https://mp.weixin.qq.com/s/Mm1lHIrgMdS5c-RrwEUsjw and https://mp.weixin.qq.com/s/K0zhFEf-NIKSAs6Jxwunzw and https://tech.sina.com.cn/roll/2019-12-17/doc-iihnzhfz6435833.shtml

This 230,000 sm Retail Dining and Entertainment project is the Gateway to the Six Flags Theme Park in Bishan, outside Chongqing. Three distinct districts: Seaport Village, Animation street and RDE, integrated with hotels and residential, combine to tell a story influenced by the history of Chongqing and the Yangtze River.

Source: http://leejstudio.com/twin-peaks-promenade-at-six-flags/