Core Viewpoint - Jiangsu Shouxihu Cultural Tourism Co., Ltd. (Shouxihu Wenlv) has submitted its prospectus to the Hong Kong Stock Exchange for an IPO, following its previous listing on the New Third Board in 2017. The company has shown significant revenue and profit growth, indicating a strong business performance in the cultural tourism sector [2][5]. Financial Performance - From 2022 to 2024, Shouxihu Wenlv's revenue increased from 31.236 million RMB to 111.428 million RMB, with a compound annual growth rate (CAGR) of 88.87%. During the same period, net profit rose from 3 million RMB to 43 million RMB, achieving a CAGR of 279.35% [5][6]. - The company's gross profit margin has shown a decline from 21.8% in 2022 to 54.4% in 2024, indicating a shift in cost structure and pricing strategy [6][8]. Business Segments - Shouxihu Wenlv operates primarily in three segments: water-based sightseeing services, sightseeing vehicle services, and management services. The water-based sightseeing services are the main revenue driver, contributing approximately 88.3% to total revenue in 2022, 87.2% in 2023, and 86.2% in 2024 [7][8]. - The company holds a 20-year exclusive operating right for water-based sightseeing in the Shugang-Shouxihu scenic area, making it the only licensed operator in the region [9]. Market Position - In 2024, Shouxihu Wenlv ranked second in Jiangsu Province's water-based sightseeing market, capturing 16% of the market share in ticket sales [8][9]. - The company is leveraging its unique cultural assets, such as the "Shouxihu boat women," to enhance the tourist experience and differentiate itself from competitors [10][11]. Growth Strategies - Shouxihu Wenlv is diversifying its offerings beyond traditional boat services by introducing value-added services, such as educational tours and corporate events, which have seen revenue growth from 5.526 million RMB in 2022 to 39.297 million RMB in 2024 [25][28]. - The company has also launched a new project, the Grand Canal Yangzhou Journey, which combines boat tours with cultural performances, aiming to expand its market reach beyond Shouxihu [28][27]. Industry Context - The cultural tourism sector is experiencing a resurgence, with several companies attempting to go public. However, many are still struggling with profitability despite increased revenue [39][40]. - Shouxihu Wenlv's IPO attempt reflects a broader trend in the industry, where companies are seeking to capitalize on the growing interest in cultural and heritage tourism [30][36].

Core Viewpoint - The article discusses the upcoming IPO of Jiangsu Shouxihu Cultural Tourism Co., Ltd., highlighting its rapid revenue growth, reliance on local tourism, and the challenges posed by visitor capacity limits in scenic areas [4][5][12]. Revenue Growth and Limitations - The company has experienced a compound annual growth rate (CAGR) of approximately 89% in total revenue from 2022 to 2024, primarily driven by its water-based sightseeing services [7][8]. - Despite the growth, the revenue is largely dependent on local visitors, with a theoretical cap on the number of tourists that can be accommodated at the Shouxihu scenic area [12][13]. Business Diversification Strategies - To overcome regional dependency, the company is pursuing diversification through new business initiatives and a light asset strategy, aiming to expand its market reach [3][19]. - The introduction of "cruise +" value-added services has significantly contributed to revenue, with a CAGR of about 181.8% from 2022 to 2024 [22]. Key Business Segments - The main business segments include water sightseeing services, value-added services, and management services, with water sightseeing accounting for over 85% of total revenue [6][8]. - The flagship brand, "Shouxihu Boat Girls," has become a recognized tourist attraction, contributing to the company's income by serving over 830,000 visitors [9][10]. Seasonal and External Influences - The company's revenue is subject to seasonal fluctuations, with peak income periods during holidays and weekends, which may affect overall financial performance [23][24]. - External factors such as pandemics and climate events can also impact revenue stability, necessitating careful financial management [25]. Future Expansion Plans - The company plans to expand its operations by developing new water tourism routes and collaborating with other scenic areas along the Grand Canal to enhance brand and management output [26].