SeaWorld has terminated agreements with its major shareholder for park exclusivity and design in China, citing "non-payment of undisputed amounts" owed to it.
The agreements were with property developer Zhonghong Holding, part of ZHG Group, which acquired a 21 per cent stake in SeaWorld from Blackstone in 2017, with two of its executives joining the SeaWorld board.
Two agreements were then put in place: one for Park Exclusivity and Concept Design (ECDA); the second for Center Concept and Preliminary Design (CDSA). The ECDA was to see SeaWorld work with Zhonghong Holding and theme park design company Hettema Group to create concept designs and development analysis for theme parks, water parks and interactive parks in China.
Under the terms of the CDSA, SeaWorld was to provide guidance, input and expertise relating to strategic planning, concept and preliminary design of Zhonghong's family entertainment centres.
In a proxy for its Annual Shareholder Meeting, SeaWorld Parks & Entertainment said it had recorded revenue of US$5.1m (€4.55m, £3.92m) in 2018 through the agreements, with US$1.5m (€1.34m, £1.15m) being received on its balance sheet by the end of 2018. In addition, around US$1.7m (€1.52m, £1.31m) is expected to be recouped, relating to "non-refundable amounts which were received from ZHG prior to the termination under the terms of the ZHG agreements".
In November 2018, it was reported by Chinese news sources that Zhonghong Holding was being delisted from the Shenzhen Stock Exchange for poor share performance amid a "company debt crisis".
