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Ocean Park seeks HKD$10 Billion Govt. Bailout

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  1. #91

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    KLOOK has entrance tickets at HKD240, available today. You can buy them on your mobile phone as you walk up to the gates. This offer has been going for a few months already.


  2. #92

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    Quote Originally Posted by Praetorian
    Ocean Park already gets shedloads of government grants and loan assistance along with HKJC contributions:
    https://media.oceanpark.com.hk/files...hk_ar18-19.pdf

    Haven’t seen where the $10b comes from, probably a high balling negotiation trick
    Well with this report we don't need to speculate anymore. On operational basis the park is profitable. But due to high debt burden, after paying interest cost (which seems to be subsidies, they only pay avg 2.8% interest on the gov loans) and and deducting depreciation (which is a non cash-flow item) the park is losing money. Depreciation which goes under other cost, also has an extra cost of HK$172.5m for 2019 was booked:

    "Note: The Corporation has been engaged in a formal dispute resolution process with its consultantsince April 2017. As a result, during the year ended 30 June 2019, legal costs of HK$85.5 million(2018: nil) were incurred and a provision of HK$87.0 million (2018: nil) was made for other costsand expenses associated with this process."

    Conclusion would then be that construction work cost is so extremely high (with the super high depreciation rate), which makes it very hard to run the park in a profitable way.

  3. #93

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    Quote Originally Posted by RobRoy

    "Note: The Corporation has been engaged in a formal dispute resolution process with its consultantsince April 2017. As a result, during the year ended 30 June 2019, legal costs of HK$85.5 million(2018: nil) were incurred and a provision of HK$87.0 million (2018: nil) was made for other costsand expenses associated with this process."
    It's hardly what's killing them, but what the H is going on there?

  4. #94

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    Press conference revealing the plan happening today
    https://twitter.com/timmysung/status...10327187509248


  5. #95

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    Quote Originally Posted by MatthieuTofu
    Press conference revealing the plan happening today
    https://twitter.com/timmysung/status...10327187509248
    Well, I suppose it would be potentially more palatable to Legco if Ocean Park emphasized how many jobs will be created with this overhaul of the park. Framed it as a social well-being measure to increase employment. Not sure if Legco will accept that though.
    Last edited by Coolboy; 13-01-2020 at 03:20 PM.

  6. #96

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    Still a piss-take. Increasing the capital expenditure will increase the depreciation charge and even doubling the attendance (and hence revenue) won’t cover it to make it profitable.

    The only reason for it is to implement the Mainland’s Borg type assimilation of HKers by introducing more and more Mainlanders into Hong Kong (where else is the increase in visitors going to come from?) as well as encouraging HKers to go to the GBA to work and live. Ocean Park making money? Nah, think not. Giving jobs to HKers, yeah right! Like what kind of jobs?!

    Last edited by Praetorian; 13-01-2020 at 03:47 PM.

  7. #97
    BCD
    BCD is offline

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    Seniors with a HKID get in free. They come in by the busloads some times. And they do not purchase the ovrpriced food - just bring their own tea bottle and buns etc in their bags.
    This must boost the attendance numbers significantly.


  8. #98

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    May 2019
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    That would work until you think about it that you are dealing with adventure park with serious investment in rides ... and you are then talking about seniors ...


  9. #99

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    Quote Originally Posted by Praetorian
    Still a piss-take. Increasing the capital expenditure will increase the depreciation charge and even doubling the attendance (and hence revenue) won’t cover it to make it profitable.
    Hardly the first or likely to be the last piss-take in HK. There are plenty of white elephant projects in HK. The high speed rail cost a fortune with running over budgets and was delayed for quite a few years. It is not expected to make money anytime soon for the MTR, if ever. The HK-Macau-Zhuhai bridge again cost billions and was hardly used by anyone except for the franchise buses and the tiny few car owners who are can afford the expensive and onerous regulations. So you essentially spent billions in taxpayer money and not letting the taxpayer use it with their own cars.

    Why? Well the government has to make sure the construction companies are happy.

  10. #100

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    Last edited by MatthieuTofu; 13-01-2020 at 06:07 PM.

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