Haichang Ocean Park (2255) H1 2024 earnings summary

Executive summary

• Revenue rose 6.8% year-over-year to RMB799.8 million for H1 2024, driven by the opening of Zhengzhou Park and growth in tourism & leisure services.

• Net loss increased slightly to RMB87.2 million, with net loss margin improving to 10.9% from 11.3% year-over-year.

• Total park attendance increased 21.2% to 4.635 million, supported by new projects and IP integration.

• The company continues to expand its IP strategy, integrating popular IPs like ULTRAMAN and ONE PIECE into parks and hotels.

• Asset-light expansion is emphasized, with new projects in Beijing, Fuzhou, Ningbo, and Saudi Arabia in the pipeline.

Financial highlights

• Park operation revenue grew 5.5% year-over-year to RMB735.9 million; tourism & leisure services revenue up 25% to RMB63.9 million.

• Gross profit declined to RMB194.9 million (margin 24.4%) from RMB202.9 million (margin 27.1%) due to lower margins from new projects.

• Other income and gains increased 47.9% to RMB96.3 million, mainly from investment property revaluation.

• Administrative expenses fell 11.5% to RMB166.9 million; selling and marketing expenses rose 16.5% to RMB26.7 million.

• Finance costs increased 12.7% to RMB168.5 million.

Outlook and guidance

• Focus remains on asset-light expansion and deepening IP integration to drive future growth.

• Several high-visibility projects are scheduled to open between 2025 and 2030, including major parks in Zhengzhou, Shanghai, Beijing, Fuzhou, Ningbo, and Saudi Arabia.

• The company expects continued revenue growth from new OAAS (Operation As A Service) model projects.

• Plans to optimize capital structure and pursue innovative financing for existing assets.