We are a leading club and entertainment business operator in Macau. We mainly operate Club Cubic in Cotai, Macau and organize special events in City of Dreams. In December 2013, Club Cubic was selected by Travel.cnn.com as one of the three largest venues in Macau. In July 2014, Club Cubic ranked fourth in the “World's Top 10 Brands” by Forbes Chinese.com. In January 2016, Club Cubic was named Best Nightclub in Hong Kong and Macau by HKClubBing.com in 2015. According to the Euromonitor report, at the last practical date, Club Cubic was Macau's second-largest clubhouse-style entertainment venue in terms of total floor area. We are committed to building Club Cubic into a high-quality, upscale clubhouse and entertainment venue. According to Euromonitor reports, Club Cubic's estimated average cost per guest per night is generally higher than other clubhouse-style entertainment venues in Macau as determined by Euromonitor. For details, please refer to the “Industry Overview — Overview of the Operation of Clubhouse-style Entertainment Venues in Macau” section of this document. During the performance recording period, through our main business, namely (i) our clubhouse business and (ii) our music-related events held at Club Cubic, the revenue we generated mainly came from Club Cubic's beverage sales to retail customers and sponsorship revenue collected from the company's customers and beverage suppliers (including kaiquan and COD), including sponsorship fees charged to display the company's customer logo or products at events, and incentives based on our purchases to drink suppliers. Beverage sales are the Group's largest product sales segment, accounting for approximately 78.3%, 74.0% and 80.3% of our revenue for the year ended December 31, 2015 and the four months ended April 30, 2016, respectively. In line with our high-quality and upscale positioning, we mainly promote champagne as our main beverage product, and its price is generally over MOP 1,500 per bottle. According to the Euromonitor report, the market size of the retail sales value of Macau champagne for the year ended December 31, 2015 was 19.6 million US dollars (equivalent to HK$152.5 million). Based on this estimate, our champagne sales accounted for about 35.4% of the market size of the retail sales value of Macau champagne for the year ended December 31, 2015. For the year ended December 31, 2014 and the four months ended April 30, 2016, champagne sales accounted for 55.8%, 58.2% and 62.3% of our beverage sales, respectively, and 43.6%, 43.0% and 50.0% of our total revenue for the same period. According to the Euromonitor report, Flower of Paris is a premium champagne brand and one of the three most popular champagne brands in Macau. This champagne is our main product, accounting for 92.3%, 94.5% and 96.9% of our champagne sales for the year ended December 31, 2015 and the four months ended April 30, 2016, respectively. As confirmed by Kai Quan, the exclusive distributor of Paris Flower Champagne in Macau, since Club Cubic opened at its current location in 2011, we are the largest customer and retail point of Paris Flower Champagne in Macau in terms of (i) number of bottles and (ii) sales volume. This ranking marks our success in turning Club Cubic into a high quality high-end clubhouse and entertainment hotspot in Macau.
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