Haichang Ocean Park (2255) H2 2024 earnings summary

Executive summary

• Revenue remained stable at RMB1,818.4 million, up 0.1% year-over-year, driven by a full year of Zhengzhou Park operations and growth in OAAS projects.

• Net loss widened significantly to RMB749.5 million from RMB181.9 million in 2023, mainly due to higher costs, increased expenses, and one-off impairments.

• Adjusted EBITDA dropped 67.3% to RMB165.7 million, reflecting lower profitability and reduced other income.

• No dividend was declared for the year.

Financial highlights

• Gross profit fell to RMB419.0 million (gross margin 23.0%) from RMB457.5 million (25.2%) year-over-year.

• Cost of sales increased 2.9% to RMB1,399.4 million, mainly due to the full-year operation of Zhengzhou Park.

• Selling and marketing expenses rose 22.3% to RMB170.2 million; administrative expenses surged 53.1% to RMB719.3 million, including a one-off impairment of RMB190.4 million.

• Finance costs increased 1.4% to RMB346.5 million.

• Cash and bank deposits dropped sharply to RMB64.7 million from RMB1,702.3 million.

• Net gearing ratio rose to 329.4% from 182.5% year-over-year.

Outlook and guidance

• Short-term growth expected from Shanghai Park Phase II (2026) and Zhengzhou Park Phase II (2025).

• Medium-term plans include asset-light projects in Beijing (2027) and Fuzhou (2028), with Haichang operating and consolidating revenue.

• Continued focus on OAAS + IP operational model and expansion of IP integration across parks and hotels.

• Management expects to secure additional financing and maintain sufficient working capital for the next 12 months.