Core Viewpoint - After more than four years, Haichang Ocean Park is set to receive significant funding through a subscription agreement with Xiangyuan Holdings, which will acquire 51 billion new shares at a price of HKD 0.45 per share, totaling HKD 22.95 billion, making Xiangyuan the new controlling shareholder with a 38.6% stake [1][9]. Group 1: Investment and Financial Structure - Xiangyuan Holdings has established a comprehensive investment model in the cultural tourism sector, utilizing self-investment, mergers and acquisitions, and strategic investments, supported by platforms such as listed companies and REITs [2]. - The funding from Xiangyuan is expected to alleviate Haichang's financial pressures, with the capital structure designed to be more stable and controllable, enhancing potential returns [3][9]. - The investment will primarily support daily operations, core business development, and debt repayment, aiming to improve Haichang's financial structure and operational efficiency [9]. Group 2: Market Position and Strategic Goals - Xiangyuan aims to integrate its existing tourism projects with Haichang's marine-themed offerings, creating a comprehensive tourism experience that spans land, sea, and air [5]. - The collaboration is seen as a strategic move to address the growing demand for high-quality, diversified leisure products in China's tourism market, particularly in marine-themed attractions [5][10]. - Haichang, as the first marine culture-based theme park operator listed on the Hong Kong Stock Exchange, has faced operational losses since 2020 due to the pandemic and market challenges, necessitating this strategic investment [6][7]. Group 3: Risks and Challenges - The partnership will face several key risks, including the need for effective debt management, operational efficiency improvements, and product upgrades to maintain market competitiveness [10][11]. - Haichang's ongoing financial struggles and liquidity issues pose significant challenges, and the effectiveness of Xiangyuan's investment in revitalizing Haichang's cash flow remains to be seen [10][11]. - The anticipated changes in Haichang's management and operational strategies post-investment could lead to significant internal transformations, which may impact the company's future direction [11].

Core Viewpoint - The announcement of a subscription agreement between Haichang Ocean Park and Xiangyuan Holdings marks a significant shift in ownership, with Xiangyuan set to become the new controlling shareholder, holding 38.6% of the shares, while the founding Qu family will remain as the second-largest shareholder [2] Company Overview - Haichang Ocean Park has been a leader in marine culture and tourism for 25 years, operating major theme parks in cities like Shanghai, Zhengzhou, Dalian, and Sanya, with over 300 million visitors to date [2] - The company has faced financial difficulties, with a cumulative net loss of 2.915 billion yuan from 2019 to 2024, and a significant reduction in liquidity, with cash and bank deposits dropping from 1.702 billion yuan to 65 million yuan [7][8] Strategic Partnership - The partnership aims to leverage Xiangyuan's capital and resources to enhance Haichang's operations in theme park management, OAAS, and IP operations, creating a "marine + mountain" resource synergy [4][5] - Both companies will explore deep cooperation in tourism project investment, IP operations, and upgrading business models to improve the quality of offerings and meet diverse tourist demands [5] Market Context - The tourism industry is transitioning from scale expansion to quality upgrades, and this investment is expected to alleviate Haichang's financial pressures while allowing Xiangyuan to enhance its influence in the IP and theme park sectors [6] - The operational challenges faced by marine parks, including high costs associated with animal care and the unique risks of closure, have been highlighted as significant factors affecting Haichang's performance [9] Future Outlook - The collaboration with Xiangyuan is seen as a potential turning point for Haichang, which has struggled with funding and project costs, and the effectiveness of this partnership in realizing strategic goals remains to be seen [10][11]