Guan Cha Zhe Wang·2025-06-05 03:40Core Viewpoint - The domestic marine park operator, Haichang Ocean Park, is set to undergo a change in control as it issues new shares worth approximately HKD 2.3 billion, with Xiangyuan Holdings becoming the controlling shareholder [1][6]. Group 1: Company Overview - Haichang Ocean Park, founded in 1992, has evolved from oil trading to real estate and tourism, becoming a leading player in the marine park sector in China [3]. - The company operates seven marine parks across various cities in China and was the first theme park operator to be listed on the Hong Kong Stock Exchange in 2014 [3][7]. - Haichang's business model has been heavily influenced by real estate development, leading to significant capital investments in various projects [3][4]. Group 2: Financial Challenges - Despite the tourism recovery in 2023, Haichang Ocean Park has struggled with operational performance post-pandemic, facing substantial debt and liquidity issues [2][5]. - The company reported cumulative losses exceeding CNY 3.785 billion from 2020 to 2024, with a significant loss of CNY 749 million in the latest fiscal year [5]. - As of the end of 2024, Haichang's cash reserves plummeted to CNY 64.73 million, down from CNY 1.7 billion the previous year, while short-term borrowings reached CNY 1.571 billion, indicating severe financial strain [5]. Group 3: Strategic Moves - To alleviate financial pressure, Haichang has previously sold assets, including a significant transaction in 2021 where it sold stakes in several marine parks for CNY 6.53 billion [6]. - The recent share issuance to Xiangyuan Holdings is part of a strategic move to bring in new capital and stabilize the company's financial situation [1][6]. - Xiangyuan Holdings aims to leverage Haichang's assets to enhance its own tourism portfolio, creating synergies between mountain and marine tourism resources [1][8].