Investment Rating - The report maintains a "Market Perform" investment rating for the consumer services industry, indicating that the industry index is expected to perform within ±10% of the market index over the next six months [34]. Core Insights - The consumer services industry index rose by 2.02% from May 30, 2025, to June 12, 2025, outperforming the Shanghai and Shenzhen 300 index by approximately 1.15 percentage points [9]. - The report highlights that domestic travel during the Dragon Boat Festival saw 119 million trips, a year-on-year increase of 5.7%, with total spending reaching 42.73 billion yuan, up 5.9% year-on-year [22]. - The upcoming summer travel season is expected to reverse the subdued performance observed during the Dragon Boat Festival, with a projected 70% increase in summer travel numbers and an 80% increase in gross merchandise value (GMV) compared to the previous year [34]. Summary by Sections Market Review - The consumer services industry index outperformed the Shanghai and Shenzhen 300 index, with a rise of 2.02% during the reporting period [9]. - The tourism and education sectors showed recovery, while the hotel and comprehensive services sectors experienced declines [10]. - A total of 38 listed companies in the industry reported positive returns, with the top five performers being ST United, Qujiang Cultural Tourism, Jinling Hotel, Changbai Mountain, and Tianmu Lake, with increases ranging from 11.86% to 55.13% [14]. - The overall price-to-earnings (PE) ratio for the consumer services industry was approximately 30.92 times, reflecting an increase compared to previous periods [18]. Industry News - The report notes significant trends in the tourism market, including a focus on family-oriented travel and deep experiential offerings, as highlighted in the 2025 Summer Travel Trend Report by Zhongxin Tourism [24]. - The popularity of the Jiangsu Super League has led to a surge in tourism bookings in Jiangsu, with an increase of over 300% in reservations [26]. - Haichang Ocean Park announced plans to introduce Xiangyuan Holdings as a new controlling shareholder [27]. Company Announcements - The report suggests monitoring specific companies such as Jinjiang Hotel, Changbai Mountain, Emei Mountain A, Xiangyuan Cultural Tourism, Jiuhua Tourism, Zhongxin Tourism, and Songcheng Performing Arts for potential investment opportunities due to their favorable positioning in the upcoming summer season [35].

Core Insights - The elderly tourism market in China is experiencing significant growth due to the increasing elderly population, with projections indicating that by the end of 2024, the population aged 60 and above will exceed 300 million, accounting for 22% of the total population [1][6][9] - The market size for elderly tourism is expected to reach 1.67 trillion yuan in 2024, reflecting a year-on-year growth of 18.8% [22] - Government policies are actively supporting the development of elderly tourism, including financial subsidies and tax incentives for tourism companies to create products and services tailored for the elderly [9][11] Industry Overview - Elderly tourism refers to the tourism industry targeting consumers aged 60 and above, characterized by a preference for in-depth travel experiences and longer trips [2][4] - The elderly tourism industry has developed a comprehensive supply chain encompassing accommodation, transportation, attractions, entertainment, and shopping [4] Market Demand - The increasing number of elderly individuals is driving demand for tourism services, with the elderly population's consumption patterns shifting from basic necessities to diverse areas such as cultural entertainment and health management [8][20] - In the consumption structure of the elderly demographic, leisure travel activities dominate, accounting for 57% of their spending [20] Policy Support - The Chinese government has introduced various policies to promote elderly tourism, including the launch of special tourism trains and the development of tourism products that cater to the elderly [9][11][12] - Local governments are also implementing initiatives to enhance elderly tourism, such as improving facilities for elderly travelers and promoting cultural and health tourism [12][13] Current Trends - The elderly tourism market is transitioning from a niche to a mainstream market, with elderly travelers now representing over 20% of the total tourism population [18] - The rise of the "self-care economy" is leading to increased willingness to spend on travel, with per capita domestic tourism expenditure reaching a historical high in 2024 [16][22] Future Outlook - The elderly tourism industry is expected to evolve towards diversification, high-end offerings, and personalized experiences, with a growing preference for slow-paced and experiential travel [24] - Technological advancements will play a crucial role in enhancing the travel experience for elderly consumers, with applications of AI and other technologies in monitoring safety and health during travel [24]

Investment Rating - The report rates the social services industry as "Overweight" indicating a positive outlook for the sector [4]. Core Insights - The report highlights the resurgence of instant film photography, particularly the popularity of "Peel Apart" film and the new "Life Four Frames" photo booths, driven by nostalgia and unique consumer experiences [5][11]. - The scarcity of Peel Apart film, with global inventory dropping below 500,000 boxes, has led to a dramatic price increase, with prices soaring from around 65-70 RMB per pack to 2800-3300 RMB on second-hand platforms, earning it the nickname "Paper Moutai" [9][11]. - The "Life Four Frames" photo booths have modernized the traditional photo booth experience, offering various backgrounds and instant photo printing, appealing to younger consumers [11][12]. Summary by Sections 1. New Trends in Photography - Peel Apart film has gained immense popularity due to its unique aesthetic and the limited availability of products from major manufacturers like Polaroid and Fujifilm, which have ceased production [8][9]. - The "Life Four Frames" photo booths have evolved from traditional photo booths, providing a more interactive and customizable experience for users [11]. 2. Market Performance Review - The social services sector saw a 2.09% increase in its index from June 2 to June 6, outperforming the broader market [13]. - Key stocks in the social services sector, such as ST United and Jinling Hotel, experienced significant gains, with increases of 21.46% and 11.87% respectively [18]. 3. Company Announcements - Companies in the retail and social services sectors are actively engaging in stock buybacks and shareholder reduction plans, indicating a focus on enhancing shareholder value [26][27]. 4. Industry Developments - The report notes significant developments in the social services industry, including record passenger numbers during the Dragon Boat Festival, showcasing a recovery in travel and tourism [30]. - The introduction of new technologies and partnerships, such as the investment in Acai Travel by Amadeus, reflects ongoing innovation within the industry [30]. 5. Valuation of Key Companies - The report provides a detailed valuation of key companies in the human resources, tourism, and hotel sectors, indicating a favorable outlook for these industries as they recover from previous downturns [32][33].

Group 1 - The summer travel market is heating up, with university students becoming the primary force in tourism demand after the Dragon Boat Festival, leading to a peak in travel from now until early July [1][2] - Airlines are responding to the increased demand by adding or increasing flight routes, with ticket prices showing a moderate upward trend after the Dragon Boat Festival [1][2] - There is a noticeable shift in outbound tourism from recovery to structural upgrade, with a more diversified demand for leisure, family study tours, and new travel categories like cruises gaining popularity [1][3] Group 2 - Outbound travel bookings have significantly increased, with many popular products sold out by May, indicating a strong demand for international travel [3] - Popular outbound destinations include Japan, South Korea, Thailand, Malaysia, the United States, the United Kingdom, and Italy, with hotel bookings covering 1,788 cities globally, an increase of 375 cities compared to last year [3] - The summer study tour market is also seeing a rise in bookings, with a preference for natural exploration and cultural experience projects, reflecting a shift in consumer interest towards experiential learning [4]

Investment Rating - Industry rating: Recommended [4] Core Insights - The report highlights a robust growth in visitor numbers during the Dragon Boat Festival, with a projected total of 6.87 billion trips, reflecting a year-on-year increase of 3.0% [1][18] - The demand for family-oriented travel has surged, particularly for short-distance self-driving trips and parent-child tours, with bookings for parent-child group tours increasing by 80% year-on-year [1][2] - The launch of new products by Lao Pu Gold, such as the Seven Sons Gourd, is expected to drive high demand in the fashion gold jewelry sector, despite a tightening overall consumption environment [2] Summary by Sections 1. Market Review - The consumer service index and retail index outperformed the CSI 300 index, with significant gains in the jewelry and watch sector [11] - The report notes a 5.1% year-on-year increase in total retail sales in April, with jewelry sales growing by 25.3% [36][50] 2. Industry & Company Dynamics - The report discusses the increase in domestic tourism, with various regions reporting significant visitor numbers during the holiday period [18][19] - Lao Pu Gold's new product launch is positioned to capture the growing trend in fashion jewelry, appealing to consumer sentiment and aesthetic preferences [2][3] 3. Macro & Industry Data - April's retail sales data indicates a stable growth trajectory, with online retail sales showing a 5.8% year-on-year increase [37] - The report provides insights into the gold jewelry market, noting a decline in overall gold consumption but an increase in gold bars and coins [52][55] 4. Investment Recommendations - The report suggests five investment themes, including the revival of traditional retail formats, the rise of AI technology applications, and the potential for new retail sectors to outperform expectations [59][61]

Group 1 - Ctrip's report indicates that during the Dragon Boat Festival in 2025, domestic surrounding and local travel will account for 64% of total travel [1] - Family-oriented travel is becoming the main force for the Dragon Boat Festival, with nearly 90% of the top 50 scenic spots being family-friendly, and family orders making up 25% of overall travel orders [1] - There is a significant increase in inbound travel, with orders rising by nearly 90% and ticket GMV for inbound travel soaring 1.5 times year-on-year [1] Group 2 - Wanlian Securities highlights that various sectors in the service industry are experiencing growth opportunities this year, driven by the implementation and optimization of vacation policies [1] - The expansion of inbound consumption is expected to bring new growth points to the duty-free industry, while the improvement of county-level commercial systems benefits the hotel and chain restaurant sectors [1] - The education sector is anticipated to become a representative application area for artificial intelligence, with a focus on tourism, duty-free, hotels, restaurants, and education leaders [1] Group 3 - Dongguan Securities notes that the tourism and travel sector is seeing a steady increase in per capita consumption during holidays, which may help reverse the "busy but not profitable" situation [2] - The combination of domestic demand expansion policies and the continuous rise in outbound travel is expected to support the bottom recovery of the tourism and travel sector in the long term [2] - Recommended stocks include Songcheng Performance, Changbai Mountain, Xiangyuan Cultural Tourism, Zhongxin Tourism, Shoulu Hotel, Junting Hotel, and Tongqinglou, focusing on scenic area companies, hotel groups in lower-tier markets, and tourism service companies benefiting from domestic and inbound travel recovery [2]

Core Viewpoint - The article highlights the perseverance of Zhongxin Tourism Group in establishing a national-level service industry standardization pilot project despite facing significant challenges and a four-year delay due to unforeseen circumstances, including the COVID-19 pandemic [1][2][3]. Group 1: Project Background - The national standardization pilot project for outbound tourism services was approved in December 2018, with an initial completion date set for December 2020 [1]. - The project faced three major disruptions, primarily due to the pandemic, which halted operations for travel agencies and online tourism companies [2][3]. Group 2: Challenges Faced - The pandemic forced Zhongxin Tourism to shift to an online mode for project development, with team members working remotely to discuss and draft the standard system [2]. - The project encountered further setbacks with the release of new national standards that required adjustments to the existing standard system just before the evaluation [3][4]. Group 3: Standardization Efforts - Despite the challenges, the project team maintained their commitment to standardization, resulting in a comprehensive standard system that covers 100% of outbound tourism service processes [6][7]. - The standardization system was integrated into the company's operations, allowing for efficient service delivery and quality control [6]. Group 4: Recovery and Results - By March 2023, the project was recognized for its efforts, leading to a significant recovery in business, with Zhongxin Tourism reporting a revenue of 3.298 billion yuan, a year-on-year increase of 558.96% [8]. - The company has also contributed to the industry by establishing a replicable standard system and leading the formulation of industry standards for outbound tourism [8][9].

Investment Rating - The report maintains an "Outperform" rating for the social services industry [1] Core Insights - The overall revenue of the sector is steadily increasing, but the recovery in performance is slower, with significant differentiation among sub-sectors. Attention is recommended for cyclical recovery sectors such as human resources and exhibitions, as well as resilient sectors like tourism and scenic spots [1][2] - In 2024, the social services sector achieved a total revenue of 191.54 billion, a year-on-year increase of 36.57%, while the net profit attributable to shareholders was 7.48 billion, a year-on-year decrease of 18.21%. The overall profitability has declined [10][14] - In Q1 2025, the sector generated a revenue of 44.84 billion, a year-on-year increase of 38.75%, with a net profit of 1.81 billion, a year-on-year increase of 33.06% [20][22] Summary by Sections Sector Summary - The revenue growth rate outperformed the profit growth rate, with the professional services and education sectors performing better. In 2024, the professional services sector saw a year-on-year increase of 79.57%, while the education sector's profit level improved significantly [10][14] - In Q1 2025, the professional services sector led with a revenue growth of 89.62%, followed by tourism and scenic spots at 7.39% [22] Tourism - The domestic travel market shows strong resilience, with a total of 5.615 billion domestic tourists in 2024, a year-on-year increase of 14.80% [34] - The cross-border travel market is experiencing high demand, with inbound tourists reaching 132 million in 2024, a year-on-year increase of 60.8% [40] Hotels - Business travel demand is still recovering, with the RevPAR expected to be under pressure throughout 2024 [13] Catering - The catering market is expected to see slower revenue growth in 2024, with Q1 2025 showing some improvement [16] Duty-Free - Duty-free sales in offshore areas are showing marginal improvement, with city channels expected to contribute to growth [18] Human Resources - The human resources sector is experiencing stable data operations, but employment market pressures remain [22] Exhibitions - The domestic exhibition market is steadily growing, with the number of exhibitions remaining stable in 2024 [24]

Summary of the Conference Call for Zhongxin Tourism Company Overview - **Company**: Zhongxin Tourism - **Industry**: Travel and Tourism Key Points and Arguments 1. **Financial Performance**: In Q1 2025, the company reported revenue of approximately 1.1 to 1.2 billion yuan, a year-on-year increase of 13%, indicating a recovery to normal levels. The gross margin improved to about 15%, driven by enhanced pricing power and supply chain negotiation capabilities, although future improvement potential is limited [2][4][10]. 2. **Market Composition**: European destinations account for about 60% of the company's offerings, Southeast Asia for 10%, and domestic travel for 10% to 15%. The average transaction price has increased by 20% to 30% compared to pre-pandemic levels. Emerging travel products, such as in-depth tours in Switzerland, are gaining popularity, while conventional routes still dominate the market [2][5]. 3. **Emerging Destinations**: The company is focusing on new travel destinations, including polar markets, which show strong demand. The company has launched refined products targeting different customer segments, such as retirees, single women, and themed travel series [2][6]. 4. **Employee Growth and Costs**: The workforce increased to 2,700 in Q1 2025, a 50% rise compared to the same period in 2024, leading to increased expenses. The non-recurring profit margin has decreased year-on-year, with overall profit margins expected to remain stable compared to the previous year [2][8]. 5. **Impact of Visa Policies**: The visa waiver policy has a limited impact on group travel markets. The company established a wholly-owned subsidiary focused on inbound tourism, primarily catering to business clients. The industry is expected to take time to recover, and the company is waiting for development opportunities [2][9][12]. 6. **Profit Margin Outlook**: The gross margin is expected to remain stable in 2025, with profit margins potentially fluctuating but overall remaining flat. The expansion of retail stores and an increase in high-margin business segments are noted, but significant overall profit margin improvements are challenging [2][10][16]. 7. **Competitive Landscape**: The industry is experiencing intensified competition, particularly as airlines increase routes, leading to more resource options. The company is targeting the silver-haired demographic with products like the "Retiree Traveler" series and is also catering to younger customers with small group and themed products [3][18][19]. 8. **Product Design Adjustments**: The company has adjusted its product offerings to cater to changing customer demographics, focusing on the silver-haired group, which constitutes over half of its customer base. Additionally, there is a noticeable trend towards younger customers, prompting the introduction of small group tours and themed products [19][20]. 9. **Regional Market Performance**: The company has maintained a strong market presence in North and East China, while expanding into the South China market, which has historically been challenging. The company is optimizing services based on regional customer needs to enhance satisfaction and loyalty [21]. 10. **Future Revenue Projections**: The company achieved approximately 6.5 billion yuan in revenue last year and anticipates a stable growth rate of around 20% for the current year, with retail outlets expected to increase from 2,300-2,500 to 3,500 by the end of this year [15][22]. Additional Important Insights - **AI Collaboration**: The company is collaborating with Fliggy on AI technology to enhance operational efficiency, particularly in supply chain management and retail store operations [14]. - **Inbound Tourism Potential**: The outlook for inbound tourism is positive, but significant growth will require time and effective marketing efforts from destination countries [12]. This summary encapsulates the key insights from the conference call, highlighting the company's performance, market dynamics, and strategic initiatives.

Core Viewpoint - The legal opinion letter issued by King & Wood Mallesons confirms that the 2024 Annual General Meeting of Zhongxin Tourism Group Co., Ltd. was convened and conducted in compliance with relevant laws and regulations [1][3]. Group 1: Meeting Procedures - The 2024 Annual General Meeting was scheduled for May 20, 2025, as per the company's board resolution [3][4]. - The meeting was held at the company's headquarters, with the presence of a sufficient number of directors and was chaired by the Deputy General Manager [5][6]. Group 2: Attendance and Voting - A total of 378 participants attended the meeting, representing 179,024,534 shares, which is 18.2173% of the total voting shares [6]. - Online voting was conducted, with 367 shareholders participating, representing 146,714,519 shares, or 14.9295% of the total voting shares [6][7]. Group 3: Voting Results - The meeting passed the resolutions with a significant majority, with 325,090,153 shares voting in favor, accounting for 99.8008% of the votes cast [7][8]. - Among minority investors, 68,263,467 shares voted in favor, representing 99.0584% of their total voting shares [8][9].