MAJOR THEATER – CLUB – GALLERY PROJECT IN SHANGHAI

By CJSC BRAVAK ART KVARTAL

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MAJOR THEATER – CLUB – GALLERY

Dear Investor,

Please explore the concept of our project to create a Theater – Club – Gallery «BRAVAK» in Shanghai.

1. The Idea.

The essence of the project is to create the necessary conditions for the development of art in its various direction by improving commercial appeal of such activities, including through diversification of products offered by classical artists in the file of art.

We believe that the creation of such conditions should be based on «traditional» basis – theater as the most recognizable and common form of expression of art, but at the same time, as a party entertainment in the broadest sense.

In our case, it is a «platform», as the new system of relations on the implementation of the results of creative activity.

We plan to bring together creative people from different areas in the field of art to achieve the common goal as to make these activities effective from a business perspective and from a quality and deep with the creative side as well.

The idea of creating dramatic theater «new format» arose as the perceived need to respond to new market demands of art and entertainment. The development of the investment project and the development of a business plan is based on 20 years of practice and experience in the field of entertainment in the arts in the South Asian region as a whole, and particularly in Shanghai (South China).

2. The Market for the project, its scope and volume.

The Market of emotional, aesthetic, and intellectual needs of human is a fastest-moving world of relations, but also is the most numerous.

On our side, there is a clear understanding that is the time when a person seeks to understand its essence, its place in the world to a greater extent through the arts (theater, dance, painting, photography, music). Especially this tendency is found in the large cities, where the potential mass audience is fed up and is in search.

Our aim to change attitudes to art as activity in general, making it attractive in entertainment purposes as well, as in economic terms.

Shanghai as the center of international and intercultural communication is the most open to new projects in any field, including in the arts.

The return on the project in its infancy will come from entering the tourism sector, which is highly developed in Shanghai, where the daily migration of 500 thousands people, only one Pudong International Airport takes around 28,000,000 passenger from all over the planet in the year. According to the Shanghai Municipal Statistics Department from 2010, 18,884 millions people live in Shanghai, 158 thousands foreigners, 73,4% of the resident population as well as the visitors is engaged in economic activities, and occupied, mainly in industry, in construction, in the service, making a great contribution to the economic development of Shanghai, thus being the solvent public. Accordingly, the repertoire will be built to the public in two ways: for tourists – it shows about the history of Shanghai, and for the resident population of Shanghai – it shows with the intellectual and philosophical nature.

3. Business model.

Plan to rent a space for theater and workshops from 1800 to 2500 sq. / m and space for organizations Hostel Rooms for artists and employees. Theater capacity for 500 seats. At the beginning of the project, the staffing will be 134 employees, including 33 of the artists and 101 staff.

Total revenue from sales of tickets, souvenirs, clothing collection, paintings, partner dance courses as well as income from the bar is from 6 to 12 million yuan a month (from 1 to 2 million $ US), which corresponds from 20 to 40% of the amount of one-time investment.

The monthly costs include: the rental, the coverage of taxes in the PRC, the investment capital return, the salaries, the social benefits for employees (health care, insurance, meals, assistance in the education of employees children, training), the company development, the necessary representation expenses, the advertising, the purchase of materials for production, and between from 3 to 4 millions yuan per moth, which corresponds from 50% to 35% of the monthly income.

The «theater-club» can accommodate 500 people at a time. The schedule repertory plan designed to take from 1,000 to 1,500 people a day. The project business plan is for 40% attendance and 35% of commodity turnover a day. In the first year of the operation work, we plan to increase an attendance and sales by 10-15%.

The founders are: Founding Director as art director and theater director and Director of the Legal Department.

Internal structure consists of six departments: Creative, Artistic, Industrial, Corporate, Marketing, Technical.

4. Evaluation of competitors.

Despite the robust economy of Shanghai and quite extensive network of restaurants, clubs and bars should be noted that the market for entertainment in the arts is very low compared to its demand, particularly in the tourism sector. One of the most popular places visited by tourists is the Shanghai Circus. Its designed capacity of more than 5,000 seats, with the attendance of 80% to 90% daily. This is the only place in Shanghai for staging performances!

Our project also intends to become one of the most popular places of attendance on the tourist map of Shanghai, where the subject of interest for the tourists will be performances about Shanghai history, the development of cosmopolitanism and the combination of the two cultures: the East and the West.

The uniqueness of the project is just in the concept of the “new format”, which combines various forms of visual art as an element of culture and way of cost-effectively.

The asset growth depends on the interaction of factors such as: the quality of the product made, the level of the service, the reception of visitors and literacy marketing activities. For all these factors, there are special programs of formation and development of the project.

5. The project development. 

A program for the protection of intellectual property in the context of the protection of authorship performances and trademark registration in the production line of clothing. Planned to organize concert tours and opening a network of branded stores “BRAVAK” in Southeast Asia, Europe, North and South America.

6. The present status of the project.

In the Amur Region established company JCSC «BRAVAK ART KVARTAL» which will be the main coordinator of the project. Approved organizational structure of the company, worked out legal support and established contacts with the authorities in China, developed a business plan for the project, the script programs, performances, prepared designs of costumes and clothing lines, the interior, the concept of theater as a whole. Casting is underway artists recruitment.

Delivered two performances «Le Vol» / «Flight» and «Blanche et Nour» / «Black and White», which premiered on 2 and 30 March on the stage of public cultural center of Blagoveshchensk. / http://video.amur.info/ivolgina / These performances have been created in preparation of documents for submission to the Ministry of Culture of China and in the promotional products to enter the Chinese market in the field of art and culture.

Contact with representatives of the Government of the People’s Republic of China and with the Ministry of Culture of China and of Shanghai established as well.

Registration documents of the company in Hong Kong as the «BRAVAK – Hong Kong», which is created specifically for the organization of financing of the project, now in the process.

We work closely with law firms in China, which provide for us legal status of the project as well as assisting in registration of and obtaining all necessary licenses for the project.

We chose the place for the project in Shanghai. This Paramount. One of the brightest historical sites in Shanghai and is located on the tourist map near the Jungian Temple. This place is very suitable to our entire project. http://en.wikipedia.org/wiki/Paramount_(Shanghai)

7. The Team.

Elena Ivolguina (Russia) – Founding Director of  JCSC “BRAVAK ART KVARTAL”, the author and Director of the investment project of Theatre – Club “Russian House” in Shanghai. (90% of the shares). An art critic, theater director, choreographer, costume designer, clothing, decor. /         http://video.amur.info/ivolgina

Konstantin Bogdaev  (Russia) – Co-founder, of the investment project of Theatre – Club “Russian House” in Shanghai. (10% of the shares). A lawyer and economist.

Sergei Logvinov (Russia) – Art Editor of the investment project of Theatre – Club “Russian House” in Shanghai. A journalist, theater critic. The Author of the television program “Do not part with your beloved». / http://video.amur.info/slnr

Vladimir Shulepin (Russia) – Musical director of the project. A musician and composer.

Vladimir Arkhipov (France) – Artistic director of the troupe. A choreographer and producer.

8. The required investment and payback period of the project.

The required investments related to the practical implementation of the project in Shanghai is estimated by our side not less than 37 million yuan (U.S. $ 6,06 million) / 37 000 000 CN¥ (U.S. 6 060 000 $). The investment is designed for 14 months of formation of the project and consists of 7 basic stages:

  Stage P. Preparation Period. Registration of company in the Russian federation as CJSC. Analysis of Market in China. Analysis of the legal, financial & economical base of the project. Drawing up the business plan. Product creation as performances and video versions for submission to the Ministry of Culture of China to obtain a license. Development of scripts, costume design, fashion line design. Preparation of the legal framework in China. Organization of Investment capital. Term – 2 years. The investment amount of 1 348 840 CN¥ (U.S. 221 120 $) This part is almost completed. Investments held by the loan.

Stage I. Organization Period. Registration of two companies in China as in Hong Kong and in Shanghai. Obtaining all required licenses to conduct business operations in Shanghai. Negotiating the withdrawal of the premises for the theater – club and for a hostel type hotel for actors and theater personnel. Trademark registration in China. Development of the technical equipment & renovation project for the theater & hostel. Recruitment and artists casting. Term – 6 months. The investment amount of 3 460 000 CN¥ (U.S. 567 270 $)

Stage II. Renovation Period. Signing of documents for the rental & contract with construction company to renovation work. Repair work of Theater Building. Development of the Marketing plan for the. Development of Decoration project. Development of Design line of garments, gifts & stage costume. Recruitment and selection of artists. Term – 3 months. The investment amount of 4 153 250 CN¥ (U.S. 680 860 $)

  Stage III. Install Period. Stage Technical equipment Installation. Technical equipment of work shops installation. Decoration works. Repair work of Hostel & Technical Installation. Renting. Marketing Plan in process. Production of promotional products. Staffing and signing the contracts with artists. Term – 2 months. The investment amount of 7 535 200 CN¥ (U.S. 1 235 278 $)

Stage IV. Production Period.  Arrivals artists. Production of Spectacles (Shows). Production of Garments & Gift Lines. Production of Costumes. Renting. Hiring personnel. Promotion, Advertising and ticket sales. Signing of agreements with travel agencies. Term – 2 months. The investment amount of 5 119 600 CN¥ (U.S. 839 279 $)

Stage IV. «Open the Door» Period. Theater-Club-Gallery action in operation. Running the project work. Shows starting. Work shops starting. Boutique starting. Bar Starting. Art gallery starting. Tourist Agency starting. Term – 2 months. The investment amount of 5 372 115 CN¥ (U.S. 880 675 $)

  Stage IV. Operation Period. This breakaway capital at the beginning of the project in the current operating mode. Term – 2 months. The investment amount of 10 010 368 CN¥ (U.S. 1 641 050 $)

9. Propose to Investor: 

RATE: at 10% per annual for 5 years; 

RETURN: 55,5 million yuan (U.S. $9,1 million) / 55 500 000 CN¥ (U.S. 9 098 361 $);

PROFIT: 18,5 million yuan (U.S. $ 3,03 million) / 18 500 000 CN¥ (U.S. 3 032 788 $);

CONDITIONS:

1. Payment of Investment Capital begins one year after admission.

2. Return of Investment – within 4 years at a rate of 5 years.

If you are interested, we can send to you with a more detailed summary of the project description.

Kind Regards,

Elena Ivolguina,

General Director of JCSC BRAVAK ART KVARTAL.

http://video.amur.info/ivolgina

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