Market Overview - The A-share market experienced a decline today, with the Shanghai Composite Index falling by 1.25% to close at 3765.88 points, and the Shenzhen Component Index dropping by 2.83% to 12118.70 points [1] - The ChiNext Index decreased by 4.25% to 2776.25 points, while the Sci-Tech 50 Index fell by 6.08% to 1226.98 points [1] - Overall, 2990 stocks declined, 2295 stocks rose, and 140 stocks remained flat, with a total trading volume of 25,443 billion yuan, an increase of 180.17 billion yuan compared to the previous trading day [1] Industry Performance - Among the Shenwan first-level industries, sectors such as retail, beauty care, banking, social services, textiles, and coal led the gains, while industries like telecommunications, electronics, comprehensive, non-ferrous metals, defense, and computers saw declines [1] Sector Highlights - The top-performing concept sectors today included ice and snow tourism, dairy, initial public offerings, prepared dishes, poultry industry, pet economy, aquatic products, duty-free shops, central enterprise banks, lab-grown meat, power batteries, selected feed, outbound tax refunds, photovoltaic inverters, and selected food processing [1]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a decline in revenue and net profit for the first half of 2025, with a revenue of 235 million yuan, down 7.44% year-on-year, and a net profit of -2 million yuan [8] - The increase in costs has put pressure on profitability, with a gross margin of 19.04% in the first half of 2025, down 10.39 percentage points year-on-year [8] - The company is expected to benefit from improved external transportation and internal expansion of the scenic area, with projected revenues of 788 million yuan, 906 million yuan, and 1,024 million yuan for 2025, 2026, and 2027 respectively [8] Financial Performance Summary - Revenue for 2023 is projected at 620 million yuan, with a growth rate of 218.7%, and a net profit of 138 million yuan [7] - The company anticipates a revenue increase to 743 million yuan in 2024, with a net profit of 144 million yuan, reflecting a growth rate of 4.5% [7] - For 2025, the expected earnings per share (EPS) is 0.57 yuan, with a price-to-earnings (PE) ratio of 78.8 [7] Market Performance - The company has experienced a market performance of -7% over the last 12 months, compared to a 23% increase in the CSI 300 index [4]

Core Viewpoint - Harbin has transformed into a popular tourist destination, especially during the winter season, attracting over 90 million visitors last year, showcasing its unique winter culture and local cuisine [2][77]. Group 1: Tourism and Local Culture - The city received over 90 million tourists last winter, becoming a hotspot for visitors seeking winter experiences and authentic local dishes [2][77]. - Harbin's local culture is deeply intertwined with the natural environment, particularly the Songhua River, which serves as a significant recreational area for residents [4][12]. - The summer and winter activities along the Songhua River, such as ice skating and winter swimming, highlight the city's seasonal charm and community engagement [13][20][14]. Group 2: Community and Identity - The phrase "go to the riverside" has become a cultural identifier for Harbin residents, symbolizing a shared local experience and community bonding [25][26]. - The riverside serves as a social hub where locals gather to relax, fish, and enjoy the natural beauty, reflecting the laid-back lifestyle of Harbin's inhabitants [27][55]. - The historical significance of the Songhua River and its role in the daily lives of Harbin residents emphasizes the connection between the community and their environment [49][52]. Group 3: Historical Context - Harbin's development as a vibrant city began with the construction of the Chinese Eastern Railway, which transformed it into a bustling immigrant city [63][64]. - The city has a rich cultural history, being home to the first symphony orchestra in China and a melting pot of various cultural influences [60][64]. - Historical events, such as the 1998 flood, have shaped the collective memory of the residents, further solidifying their connection to the river and the city [50][51].

Group 1 - The opening of the "Hot Snow Miracle" ski resort in Zhengding County, Shijiazhuang, marks the launch of a new type of urban integration model combining logistics and commerce, while also promoting youth ice and snow sports in Hebei Province [1][2] - The ski resort covers an area of over 30,000 square meters and offers more than 10 snow entertainment projects, catering to both professional events and diverse skiing needs [1] - The project aims to create a closed-loop model of "ice and snow attraction - commercial retention - logistics support," facilitating the transition from ice and snow entertainment to a multifunctional urban area [1] Group 2 - Zhengding County is recognized as one of the first ice and snow sports demonstration counties in Hebei, focusing on developing ice and snow sports venues and nurturing talent [2] - The launch of the summer promotion activities for youth ice and snow sports includes initiatives like "ice and snow into schools," "skiing competitions," and "specialized training courses" [2] - Shijiazhuang City plans to innovate business models and enhance product offerings to strengthen its ice and snow tourism brand, integrating various sectors such as "ice and snow + sports" and "ice and snow + cultural tourism" [2]

Summary of the Conference Call for Xiyu Tourism Industry Overview - The tourism industry in Xinjiang is experiencing a growth rate of approximately 10% in 2025, aligning with initial expectations, particularly during peak seasons such as the Dragon Boat Festival and local ethnic festivals [3][4] Key Points and Arguments - **Revenue and Consumer Behavior**: Despite an increase in visitor numbers, the average spending per visitor has slightly decreased. The proportion of spending on dining and accommodation is relatively low, while secondary consumption categories, such as boat rides and cable car usage, have seen a decline in growth relative to visitor numbers [2][4] - **Shareholder Actions**: The controlling shareholder plans to increase their stake by up to 1.35% to strengthen actual control over the company and avoid triggering a mandatory takeover bid. The second-largest shareholder, Changji State Investment, currently has no plans to buy or sell shares [2][6][7] - **Management Changes**: Recent changes in the management team of the cultural tourism group are internal adjustments and will not affect the strategic direction. The group aims to accelerate its strategic layout and control over Xiyu Tourism [2][8] - **Summer Season Preparations**: The company is actively preparing for the summer peak season by enhancing marketing efforts for the Tianshan Tianchi scenic area and ensuring operational safety and service quality [2][9] - **Secondary Consumption Strategies**: To address pressures on secondary consumption, the company will strengthen coordination with tour guides and travel agencies, and increase promotional efforts for projects like cable cars and space capsule camps through social media platforms [2][10] - **Low-altitude Economy Initiatives**: The company is exploring opportunities in the low-altitude economy and has reported to the regional development and reform commission to seek policy support and flight operation permits. However, the commercialization timeline remains uncertain due to the lack of established regulations at the national level [2][11] - **Winter Tourism Plans**: For 2025, the company has not yet finalized its winter tourism plans but intends to continue its collaboration with the World Ice Sailing Championship to promote winter activities at Tianshan Tianchi [2][12] - **Addressing Transportation Bottlenecks**: The company acknowledges existing bottlenecks in transportation and accommodation during the peak tourist season and plans to expand self-driving tour options to mitigate these issues [2][5][13] - **Future Investment Directions**: The company will focus on stabilizing its core scenic area, Tianshan Tianchi, while exploring project collaborations in other areas such as Kashgar and Sayram Lake [2][14] - **Cost Management**: Future labor costs are expected to rise, but the company aims to manage these through improved operational efficiency. Equipment maintenance costs are stable due to effective management practices [2][15] - **External Expansion Plans**: The company is pursuing external expansion through project collaborations, aligning with its strategic goals, but this will take time to implement [2][16] - **Shareholder Return Plans**: The company has a clear plan for share buybacks and has distributed dividends in three of the past five years, with intentions to continue rewarding investors as conditions allow [2][18][19] - **Asset Integration Timeline**: There is currently no specific timeline for asset integration within the group [2][20] Additional Important Information - The company is focusing on enhancing its marketing strategies and operational management to ensure a successful peak season while navigating challenges in consumer spending and operational bottlenecks [2][9][10]

Group 1 - The exhibition "Ice and Snow Dream, China Tour" is being held at the Chinese Cultural Center in Berlin, showcasing over 30 carefully selected images that highlight China's stunning ice and snow landscapes, diverse ice and snow culture, and the economic vitality and tourism appeal contained within the winter scenery [2][3] - The successful hosting of the 2022 Beijing Winter Olympics has accelerated the development of China's ice and snow tourism industry, leading to a surge in interest in winter tourism [3] - The Chinese government has introduced a 30-day visa-free policy and payment facilitation measures for German tourists to promote cultural and tourism exchanges between China and Germany, enhancing travel convenience [3] Group 2 - Local residents and visitors expressed their fascination with the exhibition, with one attendee planning a trip to China after learning about the visa-free policy [3] - The exhibition has sparked interest in China's rich cultural heritage and beautiful landscapes, with attendees sharing their positive impressions of Chinese cities and the preservation of ethnic minority cultures [4][5]

Investment Rating - The investment rating for the company is "Accumulate" [2][5] Core Views - The company reported a revenue of RMB 743 million in 2024, representing a year-on-year growth of 19.81%, and a net profit attributable to shareholders of RMB 144 million, up 4.48% year-on-year. The performance in 2024 indicates stable growth, while the first quarter of 2025 shows steady growth in visitor numbers, although short-term performance is under pressure due to cost factors. The long-term outlook remains positive due to expected improvements in external transportation and the launch of new projects [5][10] - The company is actively expanding its transportation capacity within the scenic area, and the anticipated improvements in external transportation, combined with the company's proactive project expansion, are expected to attract more visitors and gradually contribute to performance growth [7][10] Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of RMB 743 million, with a growth rate of 19.8%. The EBITDA was RMB 282 million, and the net profit attributable to shareholders was RMB 144 million, reflecting a growth rate of 4.5% [9][10] - For Q1 2025, the company reported revenue of RMB 129 million, a year-on-year increase of 0.73%, but the net profit decreased by 58.93% to RMB 4 million due to increased costs [10] Future Projections - The projected EPS for 2025, 2026, and 2027 are RMB 0.70, RMB 0.85, and RMB 0.95 respectively, with corresponding P/E ratios of 46.6, 38.5, and 34.2 [7][9] - The company expects to benefit from the operational launch of the Shen-Jia high-speed rail segment, which will significantly reduce travel times to the scenic area, thereby increasing visitor numbers [10] Shareholder Information - The total market capitalization of the company is approximately RMB 8.696 billion, with a circulating share count of 266.67 million shares [2][3]

Summary of Changbai Mountain Conference Call Company Overview - The conference call discusses the performance and outlook of Changbai Mountain, a tourist destination in China, focusing on its financial results and operational strategies for 2025. Key Points Financial Performance - In Q1 2025, Changbai Mountain reported a profit decrease of approximately 6 million yuan, attributed to rising wages, increased operational costs (such as expanded snow production and higher electricity costs due to new electric vehicles), and increased expenses related to travel agency revenue growth [2][4] - Revenue for Q1 2025 was 129 million yuan, a year-on-year increase of 0.73%, while costs and expenses rose by 9% [3][4] - Despite a 2.6% increase in visitor numbers, revenue growth was below 1%, primarily due to increased closure days of the Tianchi scenic spot and the timing of the Spring Festival [5] Visitor Trends and Projections - The company plans to host approximately 4 million visitors in 2025, representing a year-on-year growth of 17%-20%, with significant increases expected during the summer and winter seasons [8] - The opening of the Shenyang-Baicheng high-speed railway is anticipated to significantly boost visitor numbers in Q4 2025, changing the visitor demographic and promoting short-distance travel [8][10] Weather Impact - Adverse weather conditions in April 2025, including heavy snowfall, led to frequent closures of the Tianchi scenic spot, resulting in a 20% year-on-year decline in visitor numbers for that month [7][6] - The company expects the May Day holiday to be fully booked, but overall visitor numbers will depend on weather conditions [7] Infrastructure Developments - Significant infrastructure improvements are underway, including the expansion of the 331 National Road and the opening of new highways, which will enhance accessibility to the Changbai Mountain area [11][12] - The company is also investing in new facilities, such as the second phase of the hot spring project, expected to open before the summer or winter season of 2026 [18] Marketing and International Tourism - The inbound tourism market is primarily driven by South Korean visitors, with plans to promote Changbai Mountain in South Korea, Japan, and Southeast Asia [13][14] - The company aims to develop hiking routes and outdoor activities to cater to the preferences of South Korean tourists [15] Domestic Tourism Shifts - There has been a notable shift in domestic tourist demographics, with a decrease in visitors from Northeast China and an increase from North, East, and South China, particularly from Guangdong province [17] Future Investments and Projects - The company is focusing on core business areas such as transportation and hotel services, with ongoing projects under review by the stock exchange [18] - The transportation segment is expected to see a rebound in average spending per customer, while hotel occupancy rates and average room prices are projected to improve during the summer season [19][20] Ice and Snow Projects - Current revenue from ice and snow projects is limited, with plans to enhance offerings and potentially develop a comprehensive ice and snow tourism experience similar to "Snow Town" [21] - The company is exploring opportunities to manage additional scenic spots and hotels to increase visitor flow and standardize service quality [22] Goals and Performance Metrics - The target for visitor numbers in 2025 is set at 4 million, with internal goals exceeding those set by the State-owned Assets Supervision and Administration Commission [23] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting the financial performance, visitor trends, infrastructure developments, and future growth plans for Changbai Mountain.