Core Viewpoint - Xi'an Tourism has significantly shifted its fundraising strategy, moving from expansion plans to focusing on alleviating financial pressure through a new A-share issuance plan aimed at raising up to 300 million yuan for working capital and debt repayment [1][3][5]. Fundraising Strategy Changes - The new fundraising plan reduces the scale from approximately 400 million yuan in the previous year to a maximum of 300 million yuan, with a substantial increase in the proportion of funds allocated for debt repayment and working capital [3][5]. - The previous plan aimed to invest in direct hotel expansion projects, which has now been completely abandoned, indicating a reassessment of the company's expansion strategy in light of cash flow challenges [3][7]. Financial Performance and Challenges - Xi'an Tourism reported a 13.54% year-on-year decline in revenue for 2024, with a net loss of 260 million yuan, marking a 69.13% increase in losses compared to the previous year [9][11]. - The company's hotel business has been struggling, with a negative gross margin of -12.54% in the first half of 2025, highlighting a situation where increased revenue is leading to greater losses [9][11]. - The shift in fundraising strategy reflects the company's ongoing financial difficulties, as both the company and its major shareholder, Xi'an Tourism Group, have been experiencing continuous losses [6][11]. Strategic Implications - The drastic change in fundraising strategy signals a critical moment for Xi'an Tourism, as it must now focus on optimizing its cost structure and reversing its loss-making trend to avoid further financial strain on its major shareholder [11]. - The company’s attempts at diversification have not yielded positive results, with its commercial business showing a gross margin below 3%, indicating a lack of competitive strength compared to peers [10][11].