Core Insights - The successful IPO of Shaanxi Tourism marks the first tourism-related IPO in A-shares in five years, indicating a potential revival in the tourism sector [1][5][11] - Despite a strong performance in 2022 with a revenue of 1.263 billion, the company faced a significant drop in net profit in the first half of 2023, raising questions about its future profitability [1][6] - The company has heavily relied on its flagship performance, "The Longest Love," which has seen explosive growth but also shows signs of audience fatigue [6][7][11] Company Overview - Shaanxi Tourism was established 38 years ago, evolving from a planning and design institute to a modern enterprise under the management of Shaanxi Travel Group [2][3] - The company underwent significant restructuring in 2016, integrating various tourism-related assets and achieving a turnaround from a loss of 566,000 to a profit of 23.67 million [3][5] - The company has made multiple attempts to go public, with the latest effort resulting in a successful IPO application after overcoming previous setbacks [4][10] Financial Performance - The company's revenue grew from 232 million in 2022 to 1.263 billion in 2024, showcasing a strong recovery and growth trajectory [5][10] - However, the gross profit margin declined by 5.2 percentage points to 41.3% in the first half of 2025, indicating potential profitability challenges [6][9] - The performance of the core business segments, particularly the "The Longest Love" show and the Huashan West Peak cableway, has been mixed, with the latter experiencing a 20.81% drop in revenue [8][9] Market Position and Strategy - The IPO aims to raise 1.555 billion for various acquisitions and projects, including expanding into new markets, particularly in Shandong [10][11] - The company faces competition from other cableway operators and must address operational efficiency and cost control issues to maintain profitability [9][10] - Shaanxi Tourism's reliance on a single IP for revenue generation poses risks, as audience interest may wane over time, necessitating diversification of its offerings [6][11] Industry Context - The tourism industry is undergoing significant changes, with consumer preferences shifting towards more immersive and diverse experiences, challenging traditional performance models [12][14] - Other tourism companies are also facing similar challenges, highlighting a broader trend of resource dependency and the need for innovation in the sector [12][14] - The success of Shaanxi Tourism's IPO may signal a renewed interest in tourism investments, but the company must navigate a complex landscape of evolving consumer demands and competitive pressures to sustain growth [11][12]

Core Viewpoint - Jiangsu Shouxihu Cultural Tourism Co., Ltd. is preparing for an IPO, primarily relying on its water-based sightseeing services, which account for over 85% of its revenue [1][2]. Group 1: Business Overview - The company is the only licensed water sightseeing operator in Yangzhou, holding exclusive rights for 20 years in the Shugang-Shouxihu scenic area and indefinite rights in the Grand Canal region [2]. - Revenue from water sightseeing services has significantly increased from 31 million yuan in 2022 to 111 million yuan in 2024, with net profit rising from 2.98 million yuan to 42.88 million yuan during the same period [2]. - The main business segments include water sightseeing services, sightseeing vehicle services, and scenic area management services, with water sightseeing consistently contributing over 85% of total revenue [2]. Group 2: Business Diversification Efforts - To reduce reliance on a single business, the company launched the "Grand Canal Yangzhou Journey" performance project in October 2024, generating 18.448 million yuan in revenue in the first half of 2025, accounting for 21.8% of total income [3]. - The company also introduced value-added services such as tea experiences and corporate custom events, which contributed 35.3% to total revenue in 2024 [3]. - The company holds a 16% market share in Jiangsu's water sightseeing ticket sales, ranking second in the province, but only 1% nationally, ranking tenth [3]. Group 3: Leadership and Historical Context - Xu Shunmei, the 55-year-old chairman, has been pivotal in the company's development, transitioning from a tour guide to management roles since 2011 [4]. - The company launched the "University Student Shouxihu Boat Girl" brand in 2009, focusing on a younger workforce for its rowing services [4]. - In 2017, the company successfully listed on the New Third Board, marking its first step towards capitalization, but faces challenges in achieving a successful IPO in the Hong Kong market due to low valuations for tourism companies [5][6].

Core Viewpoint - Jiangsu Shouxihu Cultural Tourism Co., Ltd. (referred to as "Shouxihu Culture and Tourism") is preparing for an IPO, primarily relying on its water-based sightseeing services, which account for over 85% of its revenue [1][5]. Company Overview - Shouxihu Culture and Tourism submitted its prospectus to the Hong Kong Stock Exchange in September, with annual revenue exceeding 100 million yuan [1]. - The company is the only licensed operator of water-based sightseeing boats in Yangzhou, holding exclusive operating rights for 20 years in the Shugang-Shouxihu scenic area and indefinite rights in the ancient canal area [5]. Financial Performance - From 2022 to 2024, total revenue increased from 31 million yuan to 111 million yuan, while net profit rose from 2.98 million yuan to 42.88 million yuan [5]. - The revenue from water-based sightseeing services consistently maintained over 85% of total revenue during 2022 to the first half of 2025, specifically 88.3%, 87.2%, 86.2%, and 85.6% respectively [5][6]. Business Segments - The main business segments include water-based sightseeing services, sightseeing vehicle services, and scenic area management services, with the latter two contributing a smaller portion of total revenue [5]. - In 2025, the newly launched "Grand Canal Yangzhou Performance" project generated 18.44 million yuan, accounting for 21.8% of total revenue [6]. Market Position - In the Jiangsu province water-based sightseeing ticket sales market, Shouxihu Culture and Tourism holds a 16% market share, ranking second, but only 1% in the national market, ranking tenth [6][7]. Management and Leadership - The company is led by 55-year-old Chairman Xu Shunmei, who began her career as a tour guide and has significantly contributed to the development of the "Shouxihu Boat Girl" brand [1][10]. - Under her leadership, the company has developed multiple water tourism routes and a young team of boat operators, known as "boat girls" [10][11]. Challenges and Future Prospects - Despite previous success in the New Third Board, the path to an IPO in Hong Kong is challenging due to low valuations for tourism companies and a lack of successful IPOs in the sector since 2025 [13].