Haichang Holdings Ltd

Xiangyuan Group has hastily sold a core stake in Haichang Ocean Park just nine months after spending 2.295 billion Hong Kong dollars to take control. On the evening of July 30, Haichang Ocean Park announced that Xiangyuan Xinghai, a unit under Xiangyuan Group, sold 1.675 billion shares at 0.45 Hong Kong dollars per share to HH SeaPark Holding, representing 12.67 percent of total share capital, for a total consideration of approximately 754 million Hong Kong dollars. Concurrently, Qu Cheng, a representative of the founding family, sold 1.2 billion shares at 0.30 Hong Kong dollars per share, representing 9.08 percent of total share capital, for approximately 360 million Hong Kong dollars. The two transactions involve a combined 2.875 billion shares for a total amount of about 1.114 billion Hong Kong dollars. The ultimate beneficial owner of the buyer is Mei Zhiming, co-founder of GLP. After the transactions, Xiangyuan Xinghai's shareholding will drop from 38.60 percent to 25.92 percent, losing its status as controlling shareholder, and Haichang Ocean Park will become a company with no actual controller. The sale price of the shares equals Xiangyuan's original private placement cost, allowing it to break even and exit, but the remaining stake still carries a paper loss of over 200 million Hong Kong dollars based on market prices. Yu Faxiang, the actual controller of Xiangyuan Holdings, was previously subjected to compulsory criminal measures, and the group is mired in a debt quagmire. This stake sale is a passive monetization driven by cash flow pressure, aimed at recouping funds to repay debts and stabilize market expectations.