CITIC Capital invests in Singapore marketing firm

Cityneon helps film and gaming studios produce immersive promotional exhibitions for product launches using technologies such as robotics and 3D stereoscopic displays. Clients include Disney, Marvel, Hasbro, Universal and Lionsgate. Projects to date have included exhibitions for the films Avengers, Hunger Games, and Jurassic World, the latter of which was held in Korea.

"Riding on the growing momentum of consumer trends towards experience entertainment especially in North Asia, this partnership provides a springboard for us to expand our businesses in China and beyond, through the launch and introduction of existing and new intellectual properties [IP] under Cityneon's portfolios," Ron Tan, Cityneon's executive chairman and CEO, said in a statement.

Cityneon was founded in 1956 as an electric appliances supplier and gradually transitioned into a branding and design firm supporting projects such as the Australia Trade Commission's "Made in Australia" campaign. A turning point came in 2015, when the company paid S$10 million ($7.3 million) for Victory Hill Exhibitions, which held IP rights related to exhibition production for content by Hasbro, Universal, and Marvel.

The company went public in Singapore in 2005 and was delisted earlier this year by Tan and Hong Kong investor Johnson Ko Chun Shun. The company was said to be valued at S$320 million as of March, compared to S$20 million prior to the Victory Hill acquisition. Cityneon received a loan of undisclosed size in March from BNP Paribas, Hang Seng Bank, and United Overseas Bank that will also support its China expansion agenda.

Revenue for 2017 came to S$116.7 million, up 21% on the prior year, with the company citing a 187% increase in sales by its IP business, which secured contracts around China showcases for Hasbro's Transformers Autobots Alliance and Marvel's Avengers STATION. These were the IP business's first forays into China. Net profit rose by 163% to S$17.4 million during the year, a record high for the company that was also attributed to growth in the IP segment.

"We are impressed by the strong portfolio of leading global IPs that Cityneon has assembled, as well as its iconic exhibitions that mesmerize audiences in cities around the world," said Yichen Zhang, CITIC Capital's chairman and CEO. "We are confident that its strong team led by Ron will continue to build on its exclusive relationships with the world's top studios to bring more unique products to the fast-growing experience entertainment market."

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• Topics
• Southeast Asia
• Expansion
• Media
• Consumer
• Singapore
• CITIC Capital