Haichang Ocean Park (2255) H2 2025 earnings summary

Executive summary

• Revenue declined 14.8% year-over-year to RMB1,549.2 million, with gross profit margin dropping to 19.6% from 23.0% in 2024.

• Net loss widened to RMB983.6 million from RMB749.5 million in 2024, mainly due to lower revenue and fair value losses on investment properties.

• Park operations remained the core business, contributing 95.4% of revenue, while tourism & leisure services and solutions fell sharply.

• The Group completed a major share subscription, improving its financial structure and securing new strategic resources.

• Auditor issued an unmodified opinion but highlighted material uncertainty regarding going concern due to net current liabilities and overdue borrowings.

Financial highlights

• Revenue: RMB1,549.2 million (down 14.8% YoY); gross profit: RMB303.6 million (down 27.5% YoY).

• Net loss: RMB983.6 million (2024: RMB749.5 million); loss per share: RMB10.42 cents.

• Cost of sales decreased 11.0% to RMB1,245.5 million.

• Other income and gains swung to a loss of RMB116.1 million from a gain of RMB103.8 million, mainly due to fair value losses on investment properties.

• Administrative expenses fell 13.6% to RMB621.6 million; selling expenses rose 5.8% to RMB180.1 million.

• Finance costs decreased 7.4% to RMB321.0 million.

• Cash and bank deposits rose to RMB1,057.6 million (2024: RMB64.7 million); net gearing ratio improved to 171.2% from 337.6%.

Outlook and guidance

• Focus on asset-light expansion, operational efficiency, and quality improvement in core parks.

• Plans to expand IP commercialization and develop new projects in Beijing and Fuzhou.

• Strategic shift to reduce capital expenditure and improve gearing structure.

• No dividend recommended for 2025.