Topsy-turvy year for Ocean Park

Eunice Lam

Ocean Park lost HK$1.82 billion in the 2021-22 financial year, 57 times more than the previous cycle, blaming the reduced value of property, equipment and right-of-use assets.

The park said it still had ample fiscal reserves of HK$1.31 billion in bank balance and cash as of the financial year that ended June 2022.

Despite the park being closed for about three months because of the fifth wave of the pandemic, a total of 1.4 million people visited - similar to the previous year.

Its Water Park attracted 200,000 visitors from its launch on September 21 last year to the end of this June.

The park gained a year-on-year income increase of 15.6 percent and the overall revenue of the corporation rose 38.5 percent compared to last year, despite the main park being closed for 105 days and Water World 128 days.

Coupled with government grants of HK$1.5 billion, the park recorded an operating surplus of HK$436.2 million for the financial year.

The HK$1.82 billion deficit was mainly due to a HK$1.76 billion one-off impairment loss on property, equipment and assets, and depreciation losses of HK$513.7 million, said the park's annual report.

"The impairment losses, however, were only for book provision and had no impact on the corporation's cash flow," it said.

The park had 6,453 animals in June, 90 percent of them fish.

A total of 561 animals had died, which was half of the figure for the last financial year.

The death toll excluded giant panda An An, which passed away in July.

The park's collection dropped to a 10-year low since the number fell under 7,000 for the first time last year.

The drop was because of a decrease in births and acquisitions of animals. The park had only 239 new animals, a quarter of the number in 2020-21.

Ocean Park chief executive Ivan Wong Chi-Fai described the situation in the last financial year as particularly challenging due to economic uncertainty, unfavorable geopolitical development and a lack of tourists.

"The park is on track with its transformation into a resort destination grounded in nature, conservation and education, and complemented by adventure and leisure to enhance the visitor experience. We are confident of moving toward sustainable growth," he said.

In an earlier interview, the park's chairman, Paulo Pong Kin-yee, said its revamp project for transforming the lowland area into a retail, dining and entertainment hub had been put on hold due to a lack of tenders.

But he said the unsuccessful tendering did not mean the revamp plan failed and that the park will adjust its development strategy and may relaunch the tender. The revamp plan came after the Legislative Council last year approved HK$6.78 billion in funding.

eunice.lam@singtaonewscorp.com