GTCL(SZ:000978) Hua Xia Shi Bao·2025-10-14 13:55Core Points - Guilin Tourism plans to publicly transfer 100% equity and 237 million yuan of debt of its long-term loss-making subsidiary, Zijiang Danxia Tourism Co., marking the divestment of an unprofitable asset that has not generated profit since its acquisition in 2007 [2][5][6] - The company faces significant operational challenges, with 8 out of 10 major subsidiaries reporting negative net profits and 5 being insolvent as of mid-2025 [2][7] - Despite a strategic plan aimed at reversing losses, the company reported a net loss exceeding 200 million yuan in 2024 and negative net profit in the first half of 2025, indicating that the effectiveness of the strategy remains to be seen [2][10] Financial Performance - From 2020 to mid-2025, Guilin Tourism only achieved revenue growth and profitability in 2023, with all other periods showing a decline in revenue and net losses [2][9] - The company’s revenue dropped from 606 million yuan in 2019 to 129 million yuan in 2022, with cumulative net losses of approximately 769 million yuan during this period [9] - In 2023, the company reported a revenue increase of 260.89% to 467 million yuan, with net profit and non-recurring net profit both increasing by over 100% [9][10] Strategic Initiatives - The company has proposed a strategic framework called "one core, one optimization, two wings, three expansions" to address its financial difficulties and explore new business areas such as smart tourism and low-altitude economy [2][10] - The strategic plan includes enhancing core tourism operations, optimizing asset structure, and developing new tourism-related industries, although the results of these initiatives have yet to materialize [10] - The company aims to leverage national policies promoting high-quality tourism development and capitalize on the opportunity to establish Guilin as a world-class tourist city [3][10] Market Concerns - The prolonged losses and the decision to sell Zijiang Danxia have raised concerns about the company's internal management and risk assessment processes [6][7] - The potential for the Zijiang Danxia asset to face similar challenges as another subsidiary, Fengyu Rock, which has repeatedly failed to sell its stake, is a point of market speculation [7][10] - The company acknowledges the need for improved performance metrics and monitoring mechanisms for its subsidiaries to prevent future losses [6][7]