Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company's performance in H1 2025 showed a revenue of 940 million RMB, a year-on-year increase of 12.7%, while the net profit attributable to shareholders was 127 million RMB, a decrease of 3.87%. The second quarter of 2025 saw revenue of 537 million RMB, up 7.91% year-on-year, but net profit dropped 15.53% to 90 million RMB. The decline in performance is attributed to the impact of new resource usage regulations [3][8] - The company anticipates that project developments both on and off the mountain will enhance the carrying capacity of the scenic area, and the ongoing collaboration and diversification of various business segments are expected to continue [3][5] Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 940 million RMB, up 12.7% year-on-year, while the net profit attributable to shareholders was 127 million RMB, down 3.87%. The second quarter revenue was 537 million RMB, reflecting a 7.91% increase, but net profit fell by 15.53% to 90 million RMB. The decline is primarily due to increased costs from resource usage fees [3][8] - The total number of visitors to the Huangshan scenic area in H1 2025 was 2.2641 million, a year-on-year increase of 5.82%, with the cable car service transporting 4.376 million visitors, up 3.95% [8] Future Projections - The company projects EPS for 2025-2027 to be 0.47, 0.54, and 0.63 RMB, with corresponding P/E ratios of 25.5, 22.2, and 19.1 times. The long-term outlook remains positive as the carrying capacity of the scenic area is expected to improve, and business segments are anticipated to continue growing [5][7] Business Development - The renovation of the Beihai Hotel is expected to be completed by September 2025, which will significantly alleviate the shortage of hotel accommodations on the mountain. Additionally, the company plans to focus on expanding the East Huangshan scenic area to further increase visitor capacity [8]