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Ocean Park seeks HKD$10 Billion Govt. Bailout

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  1. #81

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    It's possible that previous years' losses were understated, and 2018-19's accounts pick up more than just one year's losses. Clearing the decks before asking for a bailout, when the parks accounts would certainly be scrutinised.


  2. #82

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    Quote Originally Posted by TheBrit
    Erm, net profit is affected by depreciation which will certainly change (increase) with the construction of new rides or hotel.
    You're right - I thought that chart was showing gross profit. It's financing costs and depreciation causing the net profit losses.

    Anyone know what the revenue structure is for the hotel - split between Marriott and OP?

  3. #83

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    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

    Coolboy likes this.

  4. #84

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    Quote Originally Posted by Tyresmoke
    It's possible that previous years' losses were understated, and 2018-19's accounts pick up more than just one year's losses. Clearing the decks before asking for a bailout, when the parks accounts would certainly be scrutinised.
    I wonder if the senior executives at the park were granting themselves too much..."bonuses". Or they haven't been doing so well on cost control and simply let it spiral out of hand such that increased revenue cannot cover the extra cost. Even if you factor in depreciation and other factors, expansion of WaterWorld should not blow such a hole in their P/L statements, or at least if they were responsible and competent mangers, that is what they would have watched out for anyway. Or have there been some illegal transfer here, some embezzlement, or bribery to unsavoury characters.

    Of course if they going before Legco, then the management will be confident there is nothing dubious going on because they know their numbers would be closely scrutinized...or are they confident Legco won't discover their dirty secrets?

    The only reasonable answer I can think of is that OP expects the government to bail them out so that even if they weren't so careful in managing their finances, it would not be a problem. In short, moral hazard.
    Last edited by Coolboy; 10-01-2020 at 04:33 PM.

  5. #85

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    The $10B request is a piss-take. It’s like asking to wipe out all liabilities of around $7.4B and another $2.6B to do as they wish, in addition to current assets of $1.3B.

    The long term debt was used mainly for past capital expenditure. The day to day operations are cash positive meaning cash receipts cover cash liabilities. It’s only the depreciation charge and finance costs which bring it to a loss.

    The accounts go to 30 June, so the effect of the protests have not been reflected. Even so, the $10B requested is way in excess of what negative impact of the protests had on revenue as the annual revenue in normal circumstances was in the region of $1.7B.

    Last edited by Praetorian; 10-01-2020 at 05:08 PM.

  6. #86

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    Quote Originally Posted by Praetorian
    The accounts go to 30 June, so the effect of the protests have not been reflected. Even so, the $10B requested is way in excess of what negative impact of the protests had on revenue as the annual revenue in normal circumstances was in the region of $1.7B.
    Which raises the question of why they are asking so much. Tactical move perhaps? It could be the case that OP management knows they are not going to get all they want, so they went with a high amount while the amount they expect is probably smaller. Or they say, screw it, we can get the government behind us anyway and we have some undisclosed reason that Legco will also fall in line. Or they don't expect to get any of the funding request anyway but they are simply doing it to show they want the best for the park? Or is it something else?
    Last edited by Coolboy; 10-01-2020 at 05:16 PM.

  7. #87

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    Quote Originally Posted by Praetorian
    The $10B request is a piss-take. It’s like asking to wipe out all liabilities of around $7.4B and another $2.6B to do as they wish, in addition to current assets of $1.3B.
    And both of those are quite unusual requests in a bailout. This is not a request to keep head above water, this is a request for daddy to get you a brand new credit card.

    Quote Originally Posted by Coolboy
    Which raises the question of why they are asking so much. Tactical move perhaps? It could be the case that OP management knows they are not going to get all they want, so they went with a high amount while the amount they expect is probably smaller.
    Maybe. I guess the ideal scenario is:
    - Ocean Park asks a crapload of money
    - Blue people get upset that the protests cost the Ocean Park 10 billion and shout at their kids
    - LegCo says wait a bit, we think you can do with less
    - Ocean Park gets a smaller crapload of money and are happy
    - LegCo looks like a hero saving 8B and are happy
    - Blue people still get to shout at their tv and are happy
    Everybody happy, right?
    Coolboy likes this.

  8. #88

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    Quote Originally Posted by CharSiuNow
    And both of those are quite unusual requests in a bailout. This is not a request to keep head above water, this is a request for daddy to get you a brand new credit card.



    Maybe. I guess the ideal scenario is:
    - Ocean Park asks a crapload of money
    - Blue people get upset that the protests cost the Ocean Park 10 billion and shout at their kids
    - LegCo says wait a bit, we think you can do with less
    - Ocean Park gets a smaller crapload of money and are happy
    - LegCo looks like a hero saving 8B and are happy
    - Blue people still get to shout at their tv and are happy
    Everybody happy, right?
    Maybe not the taxpayers and the scapegoats, but who ever remembers either of those, they don’t count.
    CharSiuNow likes this.

  9. #89

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    Aug 2017
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    I’m going with the wife tomorrow. It’s her birthday so it’s free for her. Our last year in Hong Kong so we thought we ought to go, 50 quid for me though! Not sure I think it’s worth it even at 25 each!


  10. #90

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    Quote Originally Posted by Pauljoecoe
    I’m going with the wife tomorrow. It’s her birthday so it’s free for her. Our last year in Hong Kong so we thought we ought to go, 50 quid for me though! Not sure I think it’s worth it even at 25 each!
    That's what I usually do too, the birthday promo is great. Then buy the ticket for the second person with klook, trip.com, or some credit card promo, you can normally get 15-20% off. At 200hkd/person I think it's worth it.
    Tyresmoke likes this.

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