Haichang Ocean Park (2255) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 declined 14.2% year-over-year to RMB686.3 million, mainly due to lower park attendance and average ticket prices.

• Gross profit dropped to RMB71.7 million with a margin of 10.4%, down from 24.4% in the prior year.

• Net loss widened to RMB295.6 million, with a net loss margin of 43.0%, compared to a net loss of RMB87.2 million and margin of 10.9% last year.

• The company continues to expand its IP operation and OAAS (Operation as a Service) business, with new projects in Beijing, Fuzhou, Ningbo, Saudi Arabia, and digital channels in the pipeline.

Financial highlights

• Park operation revenue fell 12.2% year-over-year to RMB646.2 million; tourism & leisure services and solutions revenue dropped 37.3% to RMB40.1 million.

• Cost of sales increased 1.6% to RMB614.6 million, mainly due to higher IP operation costs.

• Other income and gains decreased 71.5% to RMB27.4 million, primarily due to the absence of investment property appreciation.

• Selling and marketing expenses surged 92.1% to RMB51.3 million; administrative expenses rose 3.36% to RMB172.5 million.

• Finance costs decreased 6.8% to RMB157.0 million, reflecting lower interest-bearing liabilities.

• Cash and cash equivalents stood at RMB98.4 million as of 30 June 2025.

Outlook and guidance

• The company expects policy support and market opportunities from government initiatives to boost cultural and tourism consumption.

• Short-term growth is anticipated from the opening of Shanghai Park Phase II and Zhengzhou Park Phase II in 2026.

• Medium-term strategy focuses on asset-light OAAS projects in Beijing and Fuzhou, with further IP integration to enhance competitiveness.

• Long-term growth will be supported by a robust OAAS project pipeline, international expansion, and continued expansion of IP-driven business models.