ニュース記事

Posted on: 9th January, 2017

It was a marriage made in superhero heaven when Cityneon acquired Victory Hill Exhibitions (VHE) in September 2015.

Along with the union came the rights to use the Avengers STATION and The Transformers Experience franchise to open exhibits that immerse audiences in the world of Marvel Comics and the Autobots until 2024 and 2023 respectively.

And securing the two intellectual property (IP) rights has propelled Cityneon warp-speed ahead of local competitors Pico Art and Kingsmen Creatives.

Since Cityneon morphed into a creator of innovative and interactive exhibitions, “we consider the international experiential services company Viad Corp our main and immediate rival”, its group chief executive officer Ron Tan tells The Business Times.

Viad Corp, an international experiential events company, is behind a touring Harry Potter exhibition and the Avatar: Discover Pandora, which features state-of-the-art audiovisual and interactive experiences.

With the acquisition of VHE, Cityneon has been an outstanding performer in Singapore’s stock market over the nine months since September 2015, with shares soaring by 382 per cent in price from S$0.175 to S$0.845.

Mr Tan assumed Cityneon’s lead role on Jan 1. He is the co-founder of VHE, which was purchased by Cityneon through a cash-and-stock deal worth over S$20 million that September, adding a new segment – intellectual property (IP) rights – to Cityneon’s stable of four traditional businesses: thematic; exhibitions and logistics; events and sports; and interior architecture.

Mr Tan, who now oversees the overall operations of the company and its subsidiaries, says: “We want to be the largest in the industry. I feel that although Cityneon is a comparatively small company, it still has a very strong institutional business, strong track record and cash flow.”

Established in 1956 as a supplier of electrical appliances, Cityneon has transformed itself into an ideas agency, specialising in remoulding customer and brand experiences through its interior architecture, experiential events and exhibitions business divisions.

Cityneon was listed on the mainboard of the Singapore Exchange (SGX) in 2005, and has a current market capitalisation of S$231 million.

Bursa Malaysia-listed Star Media Group owns 52.5 per cent of the company, while Mr Tan is its single largest individual shareholder with a 16.4 per cent stake.

In April last year, Cityneon placed out 40 million new and vendor shares to China-based strategic investor China Media Capital (CMC) and other institutional and financial investors, raising net proceeds of S$10.6 million.

Alliance

CMC, a media and entertainment investment group founded by Chinese tycoon Rui Gangli, has a fund size of US$1.6 billion (S$2.2 billion). Its portfolio includes Star China, TVB, Oriental DreamWorks and Hong Kong-listed IMAX China.

This alliance enables VHE to leverage CMC’s government and industry contacts to expand in China, and allows the company to deepen its relationships with studios through CMC’s existing partnerships with Disney, Warner Brothers, and 21st Century Fox.

It also caused a spike in volume during early trading on the 15th of the same month , which led SGX to issue a query to the company. About 8.1 million shares were traded in the morning itself, compared to the counter’s daily traded volume of 2.1 million shares the day before.

Mr Tan attributed the April spike to the positive spin created through CMC’s tie-up.

But in the first week of last month came another spike in trading, resulting in yet another query from SGX. Shares of Cityneon gained 5.5 cents, or 5.5 per cent, to S$1.06 on stronger-than-usual volume over the last five trading days, then data from S&P Capital IQ showed.

Mr Tan cites positive research reports as reason for the high trading volume as the company has no other explanation for the large gain in its shares.

He adds that the outlook is bright, given the strong pipeline of movies for both the Avengers and Transformers franchises and that Cityneon expects to reap the full benefits of the VHE acquisition in its earnings from this year. “We’ve since brought our exhibitions to New York, Korea, Paris, Las Vegas and Singapore and in the future, we have our sights set on Taiwan, Australia and China,” Mr Tan says.

The Avengers STATION is a narrative-driven, walk-through exhibit set within a high-tech environment. Providing a multi-sensory, immersive experience, and featuring original sets, props, as well as costumes, the exhibit takes participants deep into the world of the Marvel characters and the science behind the superheroes.

There are currently two permanent sets in Las Vegas and four travelling exhibits.

With two IP rights already in its pocket, Cityneon is looking at acquiring a third IP this year.

“We want to be able to choose who we work with. The criteria are firstly, the movie must perform above US$1 billion (S$1.44 billion). There are only 27 movies grossing above that amount. Secondly, the movie must have sequels. Marvel has plans for sequels right up to 2022 and Transformers up to eight sequels,” Mr Tan says, but declines to say which IP Cityneon has set its sights on.

“Singapore rode on the shoulders of giants to get where it is today. Cityneon is a small company. Like Singapore, it wants to ride on the shoulders of giants to grow to be successful in the experiential exhibition industry,” Mr Tan says.

“Today, with technology and the speed of information at our fingertips, the millennials have the attention span of a mosquito. They no longer want to spend money to visit a static exhibition. Therefore, our shows are immersive attractions where visitors get drawn deep into the world of The Avengers and explore the origins of their favourite Marvel superheroes,” he says.

All about the experience

Mr Tan recalls a five-year-old boy in Singapore who was “inducted” as a recruit upon entry, went through the examinations and after completing the various interactive segments, “graduated” as an active STATION agent.

“To this day, he still carries the badge that identifies him as an agent. Our shows are successful if the audience walks away thinking like this kid. It’s all about the experience, and our goal is to create different experiences for different people,” he says.

Mr Tan says Cityneon will not be resting on its laurels.

“It is a marathon we are running. We are but at the cusp of the game. Perhaps the distance we have run is merely the first 5km. We still have 37km more to run before we complete the marathon. Who’s to say we won’t be signing up for another few marathons?”

Posted on: 9th January, 2017

It was a marriage made in superhero heaven when Cityneon acquired Victory Hill Exhibitions (VHE) in September 2015.

Along with the union came the rights to use the Avengers STATION and The Transformers Experience franchise to open exhibits that immerse audiences in the world of Marvel Comics and the Autobots until 2024 and 2023 respectively.

And securing the two intellectual property (IP) rights has propelled Cityneon warp-speed ahead of local competitors Pico Art and Kingsmen Creatives.

Since Cityneon morphed into a creator of innovative and interactive exhibitions, “we consider the international experiential services company Viad Corp our main and immediate rival”, its group chief executive officer Ron Tan tells The Business Times.

Viad Corp, an international experiential events company, is behind a touring Harry Potter exhibition and the Avatar: Discover Pandora, which features state-of-the-art audiovisual and interactive experiences.

With the acquisition of VHE, Cityneon has been an outstanding performer in Singapore’s stock market over the nine months since September 2015, with shares soaring by 382 per cent in price from S$0.175 to S$0.845.

Mr Tan assumed Cityneon’s lead role on Jan 1. He is the co-founder of VHE, which was purchased by Cityneon through a cash-and-stock deal worth over S$20 million that September, adding a new segment – intellectual property (IP) rights – to Cityneon’s stable of four traditional businesses: thematic; exhibitions and logistics; events and sports; and interior architecture.

Mr Tan, who now oversees the overall operations of the company and its subsidiaries, says: “We want to be the largest in the industry. I feel that although Cityneon is a comparatively small company, it still has a very strong institutional business, strong track record and cash flow.”

Established in 1956 as a supplier of electrical appliances, Cityneon has transformed itself into an ideas agency, specialising in remoulding customer and brand experiences through its interior architecture, experiential events and exhibitions business divisions.

Cityneon was listed on the mainboard of the Singapore Exchange (SGX) in 2005, and has a current market capitalisation of S$231 million.

Bursa Malaysia-listed Star Media Group owns 52.5 per cent of the company, while Mr Tan is its single largest individual shareholder with a 16.4 per cent stake.

In April last year, Cityneon placed out 40 million new and vendor shares to China-based strategic investor China Media Capital (CMC) and other institutional and financial investors, raising net proceeds of S$10.6 million.

Alliance

CMC, a media and entertainment investment group founded by Chinese tycoon Rui Gangli, has a fund size of US$1.6 billion (S$2.2 billion). Its portfolio includes Star China, TVB, Oriental DreamWorks and Hong Kong-listed IMAX China.

This alliance enables VHE to leverage CMC’s government and industry contacts to expand in China, and allows the company to deepen its relationships with studios through CMC’s existing partnerships with Disney, Warner Brothers, and 21st Century Fox.

It also caused a spike in volume during early trading on the 15th of the same month , which led SGX to issue a query to the company. About 8.1 million shares were traded in the morning itself, compared to the counter’s daily traded volume of 2.1 million shares the day before.

Mr Tan attributed the April spike to the positive spin created through CMC’s tie-up.

But in the first week of last month came another spike in trading, resulting in yet another query from SGX. Shares of Cityneon gained 5.5 cents, or 5.5 per cent, to S$1.06 on stronger-than-usual volume over the last five trading days, then data from S&P Capital IQ showed.

Mr Tan cites positive research reports as reason for the high trading volume as the company has no other explanation for the large gain in its shares.

He adds that the outlook is bright, given the strong pipeline of movies for both the Avengers and Transformers franchises and that Cityneon expects to reap the full benefits of the VHE acquisition in its earnings from this year. “We’ve since brought our exhibitions to New York, Korea, Paris, Las Vegas and Singapore and in the future, we have our sights set on Taiwan, Australia and China,” Mr Tan says.

The Avengers STATION is a narrative-driven, walk-through exhibit set within a high-tech environment. Providing a multi-sensory, immersive experience, and featuring original sets, props, as well as costumes, the exhibit takes participants deep into the world of the Marvel characters and the science behind the superheroes.

There are currently two permanent sets in Las Vegas and four travelling exhibits.

With two IP rights already in its pocket, Cityneon is looking at acquiring a third IP this year.

“We want to be able to choose who we work with. The criteria are firstly, the movie must perform above US$1 billion (S$1.44 billion). There are only 27 movies grossing above that amount. Secondly, the movie must have sequels. Marvel has plans for sequels right up to 2022 and Transformers up to eight sequels,” Mr Tan says, but declines to say which IP Cityneon has set its sights on.

“Singapore rode on the shoulders of giants to get where it is today. Cityneon is a small company. Like Singapore, it wants to ride on the shoulders of giants to grow to be successful in the experiential exhibition industry,” Mr Tan says.

“Today, with technology and the speed of information at our fingertips, the millennials have the attention span of a mosquito. They no longer want to spend money to visit a static exhibition. Therefore, our shows are immersive attractions where visitors get drawn deep into the world of The Avengers and explore the origins of their favourite Marvel superheroes,” he says.

All about the experience

Mr Tan recalls a five-year-old boy in Singapore who was “inducted” as a recruit upon entry, went through the examinations and after completing the various interactive segments, “graduated” as an active STATION agent.

“To this day, he still carries the badge that identifies him as an agent. Our shows are successful if the audience walks away thinking like this kid. It’s all about the experience, and our goal is to create different experiences for different people,” he says.

Mr Tan says Cityneon will not be resting on its laurels.

“It is a marathon we are running. We are but at the cusp of the game. Perhaps the distance we have run is merely the first 5km. We still have 37km more to run before we complete the marathon. Who’s to say we won’t be signing up for another few marathons?”

Posted on: 17th October, 2016

The circus – with its acrobats, animals and Big Top – has always held a special magic for Cityneon executive director Ron Tan.

“Over the decades, the industry has evolved, and the animals have gone. Now, it’s all about Cirque du Soleil.”

Mr Guy Laliberte, the co-founder of Montreal-headquartered Cirque du Soleil, or “Circus of the Sun”, “was a fire-eater and stiltwalker who transformed the traditional circus show into a multi-dimensional art form by creating a myriad of experiences and sensations”, he said. “That really inspired me, and I wanted to do the same thing for the exhibition industry,” Mr Tan added.

Mr Tan, producer of the award- winning Australian children’s TV programme Hi-5 House, co-founded Victory Hill Exhibitions (VHE) in 2012 with Mr Nicholas Cooper, four years after they met through a mutual friend. Mr Tan became the chief executive officer of the exhibition production and distribution company, and Mr Cooper, its chief creative officer.

After a long courtship, VHE finally signed a multi-year contract in 2013 with Marvel Entertainment, a wholly-owned unit of Walt Disney Company, to develop interactive exhibitions under the Avengers S.T.A.T.I.O.N (Scientific Training And Tactical Intelligence Operative Network) brand. That contract was later extended to 2024.

Last November, it also signed a multi-year deal – extending through 2023 – with Hasbro for the Transformers Experience franchise.

“Today, most people have the attention span of a mosquito, and no one wants to spend money to see a static exhibition,” Mr Tan said.

“Our show is a success if the audience walks away humming one of the tunes, or with a memory of a scene playing in the back of their minds. It’s all about the experience, and VHE’s goal is to create different experiences for different people,” he added.

AVENGERS & AUTOBOTS

The company held its Marvel exhibition, featuring Captain America, the Hulk, Iron Man, Thor and Black Widow, in Paris between April and September this year. In June, it opened a permanent Marvel exhibition in the Treasure Island Hotel & Casino, located on the world-famous Las Vegas Strip.

VHE will unveil The Avengers in Singapore later this month, with the interactive exhibition taking up 20,000 sq ft at the Science Centre. Similar Marvel installations will be rolled out in Taiwan next June, and in Australia next December.

It will also launch the Transformers exhibition, using revolutionary technologies such as 3D, robotics and multimedia, in Las Vegas and China next year.

Mr Tan, a Bachelor of Science graduate from the University of Hawaii, was appointed to Cityneon’s board as executive director last November after VHE became a wholly-owned subsidiary.

Cityneon Holdings purchased VHE through a cash-and-stock deal worth over S$20 million in September last year. The move added a new segment – Intellectual Property (IP) Rights – to its stable of four traditional businesses, comprising Interior Architecture, Events, Exhibitions and Experiential Environment.

Established in 1956 as a supplier of electrical appliances, Cityneon has morphed into an ideas agency, specialising in remoulding customer and brand experiences through its interior architecture, experiential events and exhibitions business divisions.

It was listed on the mainboard of the Singapore Exchange in 2005, and has a current market capitalisation of over S$220 million. Bursa Malaysia-listed Star Media Group owns 52.5 per cent of Cityneon, while Mr Tan is its single largest individual shareholder with a 16.4 per cent stake.

Earlier this year, Cityneon placed out 40 million new and vendor shares to China-based strategic investor China Media Capital (CMC), as well as other institutional and financial investors, raising net proceeds of S$10.6 million.

CMC, a media and entertainment investment group founded by Chinese tycoon Rui Gang Li, has a fund size of US$1.6 billion (S$2.2 billion). Its portfolio includes Star China, TVB, Oriental DreamWorks and Hong Kong-listed IMAX China.

This alliance enables VHE to leverage on CMC’s government and industry contacts to expand in China. It also allows the company to deepen its relationships with studios through CMC’s existing partnerships with Disney, Warner Brothers, and 21st Century Fox.

In the 2016 year-to-date, Cityneon shares have generated a total return of 183 per cent, with their value nearly tripling over the period.

Global peers that focus on experiential exhibitions and entertainment include New York-listed Viad Corp, as well as Paragon Entertainment and Merlin Entertainments, both listed on the London Stock Exchange. Regional peers include SGX’s Kingsmen Creatives, Kosdaq-listed Sigong Tech and Pico Far East on the Hong Kong stock exchange.

ROBUST PIPELINE

Looking ahead, Cityneon will capitalise on alliances for future growth – whether it be partnerships with studios, key players based in local markets, or strategic shareholders like CMC, Mr Tan said.

Cityneon’s relationships with Singapore broadcaster Mediacorp, French broadcaster TF1, South Korea’s Samsung Electronics, and Las Vegas-based billionaire businessman Phil Ruffin, will also extend its reach globally, he noted.

And the outlook is bright, given the strong pipeline of movies for both the Avengers and Transformers franchises that extend through 2020. Cityneon expects to reap the full benefits of the VHE acquisition in its earnings from next year.

“We are well-positioned as an extension of Walt Disney’s marketing arm,” Mr Tan said. The next step is to expand in Las Vegas. “We’re looking for installation opportunities, as we have only one there at the moment,” he added.

VHE is also in the midst of sourcing licensing rights for the third franchise that could be launched in 2018. “We’re looking for new IP rights, seeking popular IP as well as core IP, like the Avengers and Transformers, which resonate and can stand the test of time.”

Core IP commands a large fan base that is sustainable over multiple years.

“Frozen – the movie – is what we consider popular IP, but the question is whether it can develop into a core IP, still generate more than US$1 billion in ticket sales many years later,” he said, referring to the musical fantasy produced by Walt Disney Animation Studios and released in November 2013.

Frozen ranked as the highest- grossing animated film of all time, the highest-grossing film of 2013, and the best-selling film in 2014 in the United States. “If you take a few hundred artefacts and set up a travelling exhibition through Europe, the ticket revenues at each location would be massive. The question is whether you can secure the licensing rights, and not whether you can make money from such an exhibition,” Mr Tan said.

Another key challenge is growing the talent pool. “One of the risks is whether we can create a product that will resonate with the masses, but so far, our creative team has done very well.”

For example, the Avengers S.T.A.T.I.O.N is a narrative-driven, walk-through exhibit set within a high-tech environment. Providing a multi-sensory, immersive experience, and featuring original sets, props, as well as costumes, the exhibit takes participants deep into the world of the Marvel characters and the science behind the superheroes.

“Obviously, there are high barriers to entry through our use of advanced technologies,” he added.

Essentially, VHE has a four-tiered structure – the executive management or CEO at the top, followed by chief creative officer Cooper’s team, the operations group headed by chief operating officer Olivier Katz, as well as the technical team led by chief technical officer Michael Mattox, Mr Tan said.

“We’ve built VHE as a personality-neutral organisation, and these are the four pillars that will propel the company forward.”

FAMILY VALUES

On the personal front, the core values that Mr Tan upholds include learning from mistakes, focusing on fundamentals, and the importance of family. He has two daughters, aged four and 19.

“I learn a lot more from my 19-year-old than she does from me,” he admitted with a laugh. “Her innocence and enthusiasm – always wanting to save the world – embodies a pure and happy spirit, and some of that rubs off on me”.

“It’s all about how your family influences you and how you, in turn, influence your family. That dynamics is what keeps me going.”

Posted on: 17th October, 2016

The circus – with its acrobats, animals and Big Top – has always held a special magic for Cityneon executive director Ron Tan.

“Over the decades, the industry has evolved, and the animals have gone. Now, it’s all about Cirque du Soleil.”

Mr Guy Laliberte, the co-founder of Montreal-headquartered Cirque du Soleil, or “Circus of the Sun”, “was a fire-eater and stiltwalker who transformed the traditional circus show into a multi-dimensional art form by creating a myriad of experiences and sensations”, he said. “That really inspired me, and I wanted to do the same thing for the exhibition industry,” Mr Tan added.

Mr Tan, producer of the award- winning Australian children’s TV programme Hi-5 House, co-founded Victory Hill Exhibitions (VHE) in 2012 with Mr Nicholas Cooper, four years after they met through a mutual friend. Mr Tan became the chief executive officer of the exhibition production and distribution company, and Mr Cooper, its chief creative officer.

After a long courtship, VHE finally signed a multi-year contract in 2013 with Marvel Entertainment, a wholly-owned unit of Walt Disney Company, to develop interactive exhibitions under the Avengers S.T.A.T.I.O.N (Scientific Training And Tactical Intelligence Operative Network) brand. That contract was later extended to 2024.

Last November, it also signed a multi-year deal – extending through 2023 – with Hasbro for the Transformers Experience franchise.

“Today, most people have the attention span of a mosquito, and no one wants to spend money to see a static exhibition,” Mr Tan said.

“Our show is a success if the audience walks away humming one of the tunes, or with a memory of a scene playing in the back of their minds. It’s all about the experience, and VHE’s goal is to create different experiences for different people,” he added.

AVENGERS & AUTOBOTS

The company held its Marvel exhibition, featuring Captain America, the Hulk, Iron Man, Thor and Black Widow, in Paris between April and September this year. In June, it opened a permanent Marvel exhibition in the Treasure Island Hotel & Casino, located on the world-famous Las Vegas Strip.

VHE will unveil The Avengers in Singapore later this month, with the interactive exhibition taking up 20,000 sq ft at the Science Centre. Similar Marvel installations will be rolled out in Taiwan next June, and in Australia next December.

It will also launch the Transformers exhibition, using revolutionary technologies such as 3D, robotics and multimedia, in Las Vegas and China next year.

Mr Tan, a Bachelor of Science graduate from the University of Hawaii, was appointed to Cityneon’s board as executive director last November after VHE became a wholly-owned subsidiary.

Cityneon Holdings purchased VHE through a cash-and-stock deal worth over S$20 million in September last year. The move added a new segment – Intellectual Property (IP) Rights – to its stable of four traditional businesses, comprising Interior Architecture, Events, Exhibitions and Experiential Environment.

Established in 1956 as a supplier of electrical appliances, Cityneon has morphed into an ideas agency, specialising in remoulding customer and brand experiences through its interior architecture, experiential events and exhibitions business divisions.

It was listed on the mainboard of the Singapore Exchange in 2005, and has a current market capitalisation of over S$220 million. Bursa Malaysia-listed Star Media Group owns 52.5 per cent of Cityneon, while Mr Tan is its single largest individual shareholder with a 16.4 per cent stake.

Earlier this year, Cityneon placed out 40 million new and vendor shares to China-based strategic investor China Media Capital (CMC), as well as other institutional and financial investors, raising net proceeds of S$10.6 million.

CMC, a media and entertainment investment group founded by Chinese tycoon Rui Gang Li, has a fund size of US$1.6 billion (S$2.2 billion). Its portfolio includes Star China, TVB, Oriental DreamWorks and Hong Kong-listed IMAX China.

This alliance enables VHE to leverage on CMC’s government and industry contacts to expand in China. It also allows the company to deepen its relationships with studios through CMC’s existing partnerships with Disney, Warner Brothers, and 21st Century Fox.

In the 2016 year-to-date, Cityneon shares have generated a total return of 183 per cent, with their value nearly tripling over the period.

Global peers that focus on experiential exhibitions and entertainment include New York-listed Viad Corp, as well as Paragon Entertainment and Merlin Entertainments, both listed on the London Stock Exchange. Regional peers include SGX’s Kingsmen Creatives, Kosdaq-listed Sigong Tech and Pico Far East on the Hong Kong stock exchange.

ROBUST PIPELINE

Looking ahead, Cityneon will capitalise on alliances for future growth – whether it be partnerships with studios, key players based in local markets, or strategic shareholders like CMC, Mr Tan said.

Cityneon’s relationships with Singapore broadcaster Mediacorp, French broadcaster TF1, South Korea’s Samsung Electronics, and Las Vegas-based billionaire businessman Phil Ruffin, will also extend its reach globally, he noted.

And the outlook is bright, given the strong pipeline of movies for both the Avengers and Transformers franchises that extend through 2020. Cityneon expects to reap the full benefits of the VHE acquisition in its earnings from next year.

“We are well-positioned as an extension of Walt Disney’s marketing arm,” Mr Tan said. The next step is to expand in Las Vegas. “We’re looking for installation opportunities, as we have only one there at the moment,” he added.

VHE is also in the midst of sourcing licensing rights for the third franchise that could be launched in 2018. “We’re looking for new IP rights, seeking popular IP as well as core IP, like the Avengers and Transformers, which resonate and can stand the test of time.”

Core IP commands a large fan base that is sustainable over multiple years.

“Frozen – the movie – is what we consider popular IP, but the question is whether it can develop into a core IP, still generate more than US$1 billion in ticket sales many years later,” he said, referring to the musical fantasy produced by Walt Disney Animation Studios and released in November 2013.

Frozen ranked as the highest- grossing animated film of all time, the highest-grossing film of 2013, and the best-selling film in 2014 in the United States. “If you take a few hundred artefacts and set up a travelling exhibition through Europe, the ticket revenues at each location would be massive. The question is whether you can secure the licensing rights, and not whether you can make money from such an exhibition,” Mr Tan said.

Another key challenge is growing the talent pool. “One of the risks is whether we can create a product that will resonate with the masses, but so far, our creative team has done very well.”

For example, the Avengers S.T.A.T.I.O.N is a narrative-driven, walk-through exhibit set within a high-tech environment. Providing a multi-sensory, immersive experience, and featuring original sets, props, as well as costumes, the exhibit takes participants deep into the world of the Marvel characters and the science behind the superheroes.

“Obviously, there are high barriers to entry through our use of advanced technologies,” he added.

Essentially, VHE has a four-tiered structure – the executive management or CEO at the top, followed by chief creative officer Cooper’s team, the operations group headed by chief operating officer Olivier Katz, as well as the technical team led by chief technical officer Michael Mattox, Mr Tan said.

“We’ve built VHE as a personality-neutral organisation, and these are the four pillars that will propel the company forward.”

FAMILY VALUES

On the personal front, the core values that Mr Tan upholds include learning from mistakes, focusing on fundamentals, and the importance of family. He has two daughters, aged four and 19.

“I learn a lot more from my 19-year-old than she does from me,” he admitted with a laugh. “Her innocence and enthusiasm – always wanting to save the world – embodies a pure and happy spirit, and some of that rubs off on me”.

“It’s all about how your family influences you and how you, in turn, influence your family. That dynamics is what keeps me going.”

Posted on: 13th June, 2016

EXCLUSIVE deals with the popular Avengers and Transformers movie franchises have propelled Cityneon Holdings to become one of the best performing Singapore stocks this year, but keeping the party going with a third franchise will hinge on whether the company can expand its pool of creative talent, according to executive director Ron Tan.

“The third intellectual property (IP), if it happens, is more an issue of our bandwidth,” Mr Tan told The Business Times in an interview. “Internally right now I have the breadth of the company, but I don’t have enough depth. I need to build the depth of the company enough so that I don’t overstrain the company and the resources. But we’re constantly looking for growth.”

Cityneon’s share price has more than doubled this year, from 32.5 Singapore cents at the end of 2015 to 81.5 Singapore cents at Friday’s close. DBS initiated coverage on the stock with a “buy” call in May and a target price of S$1.03. UOB Kay Hian is also recommending that investors “buy” the stock, with a target price of 85 Singapore cents.

Fuelling that spectacular rise was the 2015 acquisition by Cityneon, which has been a provider of neon lighting, of Victory Hill Exhibitions. The acquisition brought Mr Tan into the company as a substantial shareholder and board member. But just as important, it added Victory Hill’s deals with two of the world’s most popular movie franchises.

Victory Hill, now part of Cityneon, specialises in standalone interactive exhibitions. For example, on the Avengers sets visitors take on the role of recruits who help to save the world.

They will be presented with challenges and play out their roles on sets based on the fictional world in the superhero movies. Visitors have to pay an entrance fee, and will have the option of spending more at obligatory gift shops and photograph stations.

With a reputation remaining true to a movie’s branding, the company has clinched exclusive contracts to develop such exhibitions for Marvel’s Avengers and Hasbro’s Transformers. Cityneon will have two permanent sets in Las Vegas, and will build several more travelling sets to be set up in cities around the world. There is currently one Avengers set in Paris, and plans have already been announced for sets in Australia and China. DBS analyst Ling Leng Kee estimates that Cityneon could have six sets in total by the end of 2017 and eight sets by 2018.

The business is now in a relatively sweet spot, where some of the hardest work has been done. The task of clinching franchises is out of the way. The most demanding part of the set development process, which is at the start, is over. A recent placement also raised S$11 million, and Mr Tan said he does not expect to have to raise additional capital for now.

What is left is to reap the seeds that have been sowed. That means pushing out exhibitions around the world for current brands.

“The first one was very, very difficult, but I think we have proven ourselves,” Mr Tan said.

The reaping is not without risks. The partners that will do the heavy lifting for the travelling sets may have a change of heart or deliver poor quality. The business also needs its only two movie brands to remain popular for the next several years.

“The big risk is whether the IP, Marvel for example, will be popular in the next 10 years, 15 years. We’re only as good as our partners, which are the movie studios. . . and there’s the execution risk,” Mr Tan said.

Mr Tan is therefore selective about which movie franchises he will pursue if the company goes after its third brand. An eligible movie franchise must have made more than US$1 billion in the box office to ensure sufficient consumer interest, and there must be sequels to ensure sustainability.

Mr Tan and his core creative team are also extremely picky about the design of their sets. When asked about his checklist of requirements, Mr Tan said the exhibits must be true to the underlying brand, be fun, be visually compelling and provide an immersive experience.

Being able to generate quality content helps to win new business and to keep copycats at bay, Mr Tan explained. That is why he is careful about expanding too fast without having the creative capacity to manage another brand.

There remains the question of Cityneon’s old business, which has now taken a back seat.

Mr Tan said that it was business as usual on that front, but the bulk of the company’s attention is now on its exhibitions business, and all options are open.

“We’re building up our resources. But for now we already have two of the world’s largest franchises, arguably. . . So let’s scale this up first,” he said.

Posted on: 13th June, 2016

EXCLUSIVE deals with the popular Avengers and Transformers movie franchises have propelled Cityneon Holdings to become one of the best performing Singapore stocks this year, but keeping the party going with a third franchise will hinge on whether the company can expand its pool of creative talent, according to executive director Ron Tan.

“The third intellectual property (IP), if it happens, is more an issue of our bandwidth,” Mr Tan told The Business Times in an interview. “Internally right now I have the breadth of the company, but I don’t have enough depth. I need to build the depth of the company enough so that I don’t overstrain the company and the resources. But we’re constantly looking for growth.”

Cityneon’s share price has more than doubled this year, from 32.5 Singapore cents at the end of 2015 to 81.5 Singapore cents at Friday’s close. DBS initiated coverage on the stock with a “buy” call in May and a target price of S$1.03. UOB Kay Hian is also recommending that investors “buy” the stock, with a target price of 85 Singapore cents.

Fuelling that spectacular rise was the 2015 acquisition by Cityneon, which has been a provider of neon lighting, of Victory Hill Exhibitions. The acquisition brought Mr Tan into the company as a substantial shareholder and board member. But just as important, it added Victory Hill’s deals with two of the world’s most popular movie franchises.

Victory Hill, now part of Cityneon, specialises in standalone interactive exhibitions. For example, on the Avengers sets visitors take on the role of recruits who help to save the world.

They will be presented with challenges and play out their roles on sets based on the fictional world in the superhero movies. Visitors have to pay an entrance fee, and will have the option of spending more at obligatory gift shops and photograph stations.

With a reputation remaining true to a movie’s branding, the company has clinched exclusive contracts to develop such exhibitions for Marvel’s Avengers and Hasbro’s Transformers. Cityneon will have two permanent sets in Las Vegas, and will build several more travelling sets to be set up in cities around the world. There is currently one Avengers set in Paris, and plans have already been announced for sets in Australia and China. DBS analyst Ling Leng Kee estimates that Cityneon could have six sets in total by the end of 2017 and eight sets by 2018.

The business is now in a relatively sweet spot, where some of the hardest work has been done. The task of clinching franchises is out of the way. The most demanding part of the set development process, which is at the start, is over. A recent placement also raised S$11 million, and Mr Tan said he does not expect to have to raise additional capital for now.

What is left is to reap the seeds that have been sowed. That means pushing out exhibitions around the world for current brands.

“The first one was very, very difficult, but I think we have proven ourselves,” Mr Tan said.

The reaping is not without risks. The partners that will do the heavy lifting for the travelling sets may have a change of heart or deliver poor quality. The business also needs its only two movie brands to remain popular for the next several years.

“The big risk is whether the IP, Marvel for example, will be popular in the next 10 years, 15 years. We’re only as good as our partners, which are the movie studios. . . and there’s the execution risk,” Mr Tan said.

Mr Tan is therefore selective about which movie franchises he will pursue if the company goes after its third brand. An eligible movie franchise must have made more than US$1 billion in the box office to ensure sufficient consumer interest, and there must be sequels to ensure sustainability.

Mr Tan and his core creative team are also extremely picky about the design of their sets. When asked about his checklist of requirements, Mr Tan said the exhibits must be true to the underlying brand, be fun, be visually compelling and provide an immersive experience.

Being able to generate quality content helps to win new business and to keep copycats at bay, Mr Tan explained. That is why he is careful about expanding too fast without having the creative capacity to manage another brand.

There remains the question of Cityneon’s old business, which has now taken a back seat.

Mr Tan said that it was business as usual on that front, but the bulk of the company’s attention is now on its exhibitions business, and all options are open.

“We’re building up our resources. But for now we already have two of the world’s largest franchises, arguably. . . So let’s scale this up first,” he said.