Core Viewpoint - Xi'an Tourism reported a narrowing loss in its 2025 interim financial results, with total operating revenue declining and net profit showing a slight improvement compared to the previous year [1] Financial Performance - Total operating revenue for 2025 was 218 million yuan, a decrease of 13.54% year-on-year from 252 million yuan in 2024 [1] - The net profit attributable to shareholders was -55.99 million yuan, an improvement of 12.06% from -63.66 million yuan in the previous year [1] - The gross profit margin was 2.09%, down 48.19% from 4.03% in 2024 [1] - The net profit margin was -28.28%, a slight decrease of 3.17% from -27.41% in 2024 [1] - Total expenses (selling, administrative, and financial) amounted to 63.49 million yuan, accounting for 29.12% of revenue, a decrease of 2.18% year-on-year [1] Cash Flow and Debt Situation - Cash and cash equivalents decreased to 134 million yuan, down 28.68% from 188 million yuan in 2024 [1] - Accounts receivable decreased to 53.43 million yuan, a decline of 33.98% from 80.93 million yuan [1] - Interest-bearing liabilities increased to 935 million yuan, up 6.40% from 879 million yuan [1] - The company has a cash flow situation that requires attention, with cash and cash equivalents to current liabilities ratio at 14.79% [3] Strategic Focus - The company is focusing on reducing losses and improving efficiency through several strategies, including expanding its hotel business and enhancing the travel agency's profitability [3] - The company aims to leverage its tourism resources to improve its main business and drive quality enhancement [3]

Group 1: Financial Performance and Challenges - The company is currently facing continuous losses due to multiple challenges, including changes in industry competition and evolving consumer market demands [2][3] - The hotel sector is still in a recovery phase, contributing to the overall financial difficulties [3] - The company is focused on loss reduction and aims to improve efficiency through various strategies [2][3] Group 2: Strategic Initiatives - The company plans to deepen its core hotel business by accelerating the "direct + franchise" expansion model, leveraging the "Xi'an Travel Wan'ao" brand and digital management platforms to enhance scale effects [2][3] - There is an emphasis on transforming and upgrading the travel agency business, increasing resource integration, and enhancing profitability [2][3] - The company is also pursuing new cultural tourism integration to expand tourism resources and improve the quality of its main business [2] Group 3: Restructuring and Future Plans - The company has no current plans for restructuring, despite ongoing losses in the Xi'an tourism and dining sectors [3] - Any future restructuring plans will be disclosed in accordance with legal requirements [3]