Haichang Ocean Park : Interim Report 2017

2017

(Incorporated in the Cayman Islands with Limited Liability) Stock Code : 2255

INTERIM REPORT

ABOUT HAICHANG OCEAN PARK HOLDINGS LTD.

Listed on the Main Board of The Stock Exchange of Hong Kong Limited in March 2014, Haichang Ocean Park Holdings Ltd. is the leading developer and operator of theme parks in China. With over 15 years of experience in animal breeding and conservation, marine theme park development and operation, the Company has consistently ranked as one of the top ten theme park operators worldwide for consecutive years. The Company's theme parks provide a one-stop sightseeing, entertainment, leisure, dining and shopping experience to its customers through both the in-park offerings and complementary services offered by the ancillary commercial properties adjacent to the theme parks. China's theme park industry possesses enormous growth potential, and the theme parks of the Company have had nearly 110 million visitors since 2002. The Company currently operates eight theme parks located in Dalian, Qingdao, Tianjin, Yantai, Wuhan, Chengdu and Chongqing respectively, including six ocean theme parks, one adventure theme park and one water world. Meanwhile, three major projects are under construction in Shanghai, Sanya and Zhengzhou. In addition, the Company actively transferred its core competitive edges into market productivity and expanded its innovative businesses in the marine culture industry, such as management output business and cultural IP business, with great efforts after listing. These businesses are set to become the new driving force for the sustainable development of the Company in the future. Haichang Ocean Park is currently included as a constituent of the Hang Seng Family of Indexes, and has been included by Morgan Stanley Capital International (MSCI) as a constituent of the MSCI Global Small Cap Indexes.

CONTENTS • HAICHANG OCEAN PARK HOLDINGS LTD. INTERIM REPORT 2017 •

Corporate Information 2

Financial Highlights 4

Chairman's Statement 5

Management Discussion and Analysis 8

Unaudited Interim Condensed Consolidated 25

Statement of Profit or Loss

Unaudited Interim Condensed Consolidated 26

Statement of Comprehensive Income

Unaudited Interim Condensed Consolidated 27

Statement of Financial Position

Corporate Governance and Other Information

17

Unaudited Interim Condensed Consolidated 29

Statement of Changes in Equity

Independent Review Report 24

Unaudited Interim Condensed Consolidated 30

Statement of Cash Flows

Notes to Unaudited Interim Financial 32

Information

HAICHANG OCEAN PARK HOLDINGS LTD.

INTERIM REPORT 2017

CORPORATE INFORMATION

BOARD OF DIRECTORS

Executive Directors

Wang Xuguang (王旭光) (Chief Executive Officer)

Qu Cheng (曲程) Gao Jie (高杰)

Non-executive Directors Qu Naijie (曲乃杰) (Chairman) Makoto Inoue (井上亮)

Yuan Bing (袁兵)

Independent Non-executive Directors

Chen Guohui (陳國輝)

(appointed with effect from 25 January 2017)

Sun Jianyi (孫建一) Zhang Meng (張夢)

(appointed with effect from 25 January 2017)

Fang Hongxing (方紅星)

(resigned with effect from 25 January 2017)

Xie Yanjun (謝彥君)

(resigned with effect from 25 January 2017)

HONORARY CHAIRMAN

Yoshihiko Miyauchi (宮內義彥)

COMPANY SECRETARY

Xing Jun (HKICS, ICSA)

AUTHORISED REPRESENTATIVES

Wang Xuguang

Xing Jun (HKICS, ICSA)

LEGAL ADVISERS

As to Hong Kong Law

Kwok Yih & Chan

As to PRC Law

Liaoning Think Tank Law Firm

AUDITOR

Ernst & Young

Certified Public Accountants

AUDIT COMMITTEE

Chen Guohui (Chairman)

(appointed with effect from 25 January 2017)

Sun Jianyi Zhang Meng

(appointed with effect from 25 January 2017)

Fong Hongxing (ceased to act as a member with effect from 25 January 2017)

Xie Yanjun (ceased to act as a member with effect from 25 January 2017)

REMUNERATION COMMITTEE

Sun Jianyi (Chairman) Wang Xuguang Chen Guohui

(appointed with effect from 25 January 2017)

Fang Hongxing

(ceased to act as a member with effect from 25 January 2017)

NOMINATION COMMITTEE

Qu Naijie (Chairman)

Sun Jianyi Zhang Meng

(appointed with effect from 25 January 2017)

Xie Yanjun

(ceased to act as a member with effect from 25 January 2017)

RISK MANAGEMENT AND CORPORATE GOVERNANCE COMMITTEE

Yuan Bing (Chairman)

Chen Guohui

(appointed with effect from 25 January 2017)

Zhang Meng

(appointed with effect from 25 January 2017)

Fang Hongxing

(ceased to act as a member with effect from 25 January 2017)

Xie Yanjun

(ceased to act as a member with effect from 25 January 2017)

INDEPENDENT BOARD COMMITTEE

Sun Jianyi (Chairman)

Chen Guohui

(appointed with effect from 25 January 2017)

Zhang Meng

(appointed with effect from 25 January 2017)

Fang Hongxing

(ceased to act as a member with effect from 25 January 2017)

Xie Yanjun

(ceased to act as a member with effect from 25 January 2017)

HEAD OFFICE IN THE PRC

No.1, Lianjing Garden, Huale Street Zhongshan District

Dalian, Liaoning Province PRC

2