Business Overview - The company achieved a revenue of CNY 2,089.60 million in the first half of 2025, representing an 8.52% increase year-on-year [2] - Net profit attributable to shareholders reached CNY 49.53 million, a growth of 24.39% compared to the previous year [2] - The net asset value at the end of the period was CNY 2,260.86 million, remaining stable compared to the previous year [2] - The net cash flow from operating activities was CNY 124.78 million, with a debt-to-asset ratio of 39.03% and a weighted average return on equity of 2.16% [2] Travel Business - The core entity for the travel business is Guangzhou Guangzhi Travel International Co., Ltd., which is a leading domestic travel agency [3] - In the first half of 2025, the travel business generated revenue of CNY 1,535.71 million, an 11.78% increase year-on-year [3] - Revenue from outbound tourism (excluding Hong Kong and Macau) was CNY 848.81 million, while domestic tourism revenue was CNY 498.20 million [3] - The net profit for the travel business was CNY 23.29 million, up 34.91% year-on-year [3] Accommodation Business - The accommodation segment includes hotel management and operations, focusing on brand development and capital operation [4] - Revenue from the accommodation business was CNY 118.56 million, a 1.60% increase year-on-year [5] - The net profit for the accommodation segment was CNY 9.73 million, reflecting a 23.26% growth compared to the previous year [5] - The company’s hotel management entity ranks 14th in the "Top 60 Hotel Groups in China" [4] Scenic Area Development - The company has established Guangzhou Guangzhi Travel Yujing Destination Tourism Development Co., Ltd. to manage scenic area projects [6] - Scenic areas managed include the Mingchun Valley and Yuexi Academy, with plans to expand to other provinces [7] - The company is collaborating with various partners to enhance brand marketing and expand the tourism industry chain [7] Senior Tourism Initiatives - The company launched the "Leisure and Active" club in 2024, focusing on tourism products for the elderly [8] - In 2025, new products such as the "Travel Residence 2.0" series and specialized trains were introduced to cater to the senior market [8] Duty-Free Business - The company has partnered with China Duty Free Group and others to establish a duty-free store in Guangzhou [10] - The registered capital for the joint venture is CNY 45 million, with the company holding a 19.50% stake [10] - The first city duty-free store opened in August 2025, enhancing the shopping experience for outbound travelers [10] Cruise Tourism - The company has established a "Cruise Membership Club" to enhance the cruise business [12] - A four-tier membership system is being developed to provide unique experiences and foster long-term relationships with high-net-worth clients [12]

Core Insights - Shandong's marine tourism is evolving from a traditional "viewing" model to a more interactive "experiencing" model, focusing on diverse activities and deep experiences [2][5] Industry Overview - Shandong boasts over 3,000 kilometers of coastline with rich marine tourism resources, attracting 480 million domestic tourists and generating 536 billion yuan in tourism revenue last year, marking year-on-year growth of 11.5% and 12.6% respectively [2] - The region is shifting from traditional beach tourism to include leisure coastal tourism, island vacations, and cruise tourism, enhancing the overall tourism experience [2] Cruise Tourism Development - The introduction of cruise tourism is a significant trend, with the Qingdao cruise home port expected to welcome five cruise ships and nearly 30 voyages in 2025, reflecting a 64% increase in cruise voyages from January to August this year [2][3] - The "Zhaoshang Yidun" cruise ship's recent docking in Qingdao highlights the growing popularity of overnight stays, allowing tourists to explore local attractions [3] New Tourism Products - The "Haoke Shandong·Peninsula No. 1" sea tour project launched in July has introduced customizable island-hopping experiences, attracting a younger demographic with 60% of passengers under 40 [4] - The project has significantly boosted local tourism, with occupancy rates for nearby accommodations rising from 40% to 80% and local fishermen transitioning to tourism services, increasing their daily income from 200 yuan to 800 yuan [4] Economic Impact - The integration of "ticket + cultural tourism" has extended the consumer experience, with over 3,800 visitors benefiting from discounts at 105 tourist attractions and 80 restaurants along the coast [5] - In Rizhao, 19 tourist attractions received nearly 1.83 million visitors this summer, generating 309 million yuan in revenue, showcasing the growing economic impact of diversified tourism offerings [6]

Core Insights - Shenzhen's tourism sector is experiencing significant growth, with a total of 90.57 million visitors and a revenue of 138.36 billion yuan in the first half of 2025, marking a year-on-year increase of 11.9% and 13.9% respectively [1] - The city aims to achieve a tourism revenue of over 300 billion yuan and receive more than 200 million visitors by the end of 2025 [1][4] - Shenzhen is positioning itself as a premier destination for weekend getaways and international tourism, with a focus on enhancing its global marketing efforts [2] Tourism Growth - The number of international and regional passengers at Shenzhen Airport reached 3.06 million in the first half of 2025, a 30.7% increase year-on-year, with over 20,000 international flights [3] - The city received 18.39 million inbound tourists, reflecting a 31.9% increase compared to the previous year [3] Marketing and Promotion - Shenzhen's tourism marketing strategy includes collaborations with social media influencers to promote the city globally, exemplified by the engagement of popular American influencer "IShowSpeed" [2] - The city plans to launch a global tourism campaign themed "2025 Amazing Shenzhen," focusing on various aspects of travel including dining, accommodation, and entertainment [2] Infrastructure and Events - Shenzhen is enhancing its tourism infrastructure, with new attractions and facilities set to open, including the Shenzhen Science and Technology Museum and the world's largest indoor ice and snow world [7][8] - Major events such as concerts and sports competitions are drawing significant visitor numbers, with over 30 large concerts held in the first half of the year [5][6] Cross-Border Tourism - Shenzhen is leveraging its geographical advantages to attract tourists from Hong Kong and other regions, with a notable increase in night-time cross-border traffic [6][9] - The city is also focusing on developing industrial tourism routes in collaboration with major tech companies like Huawei and DJI [9] Coastal and Cruise Tourism - Shenzhen's long coastline presents opportunities for coastal tourism, with plans to enhance the East Coast tourism area and develop a cruise tourism product system [12] - The city is actively promoting cruise tourism, with several international cruise ships docking at its ports [12]

Group 1 - The event "Cruise Appointment, Wonderful Life" was held to allow citizens to experience cruise tourism and understand the integration of the shipping industry with urban life [1][2] - 200 lucky citizens participated in the event, boarding the Aida Cruises' "Mediterranea" and Chengzhen Cruises' "Dream" for immersive experiences [1] - The "Mediterranea" cruise ship features 1,057 luxurious cabins and can reach destinations such as Fukuoka, Japan, and Jeju, South Korea [1] Group 2 - Tianjin International Cruise Home Port resumed operations in September 2023, receiving 85,000 inbound and outbound tourists [2] - The home port plans to open a duty-free shop in 2024 and aims to receive 350,000 tourists that year, maintaining its position as the second busiest coastal port in China [2] - On May 1, 2025, the home port will host its first "three ships at the same time" event, marking a significant recovery for the cruise industry in Tianjin [2]

Core Viewpoint - The "Dream" cruise ship and the "Ocean Celebration" cruise ship docked simultaneously at Tianjin International Cruise Home Port, marking a significant increase in foreign tourist arrivals and departures during the recent holiday period [1][3]. Group 1: Cruise Operations - The "Dream" cruise ship carried nearly 1,600 passengers into Tianjin and later transported around 1,700 passengers to Jeju, South Korea, while the "Ocean Celebration" ship brought in approximately 4,700 passengers and sent over 4,000 passengers to Incheon, South Korea, setting a new record for outbound foreign passengers from Tianjin in a single day [1][3]. - During the 2025 May Day holiday, Tianjin International Cruise Home Port recorded over 20,000 inbound and outbound passengers, a nearly fourfold increase year-on-year, with over 3,000 foreign tourists, significantly surpassing the previous year's figures [3]. Group 2: Immigration and Customs Management - In 2024, Tianjin International Cruise Home Port is expected to maintain its position as the second busiest port in China and the busiest in Northern China for cruise operations [5]. - The East Jiang Border Inspection Station has optimized passenger clearance processes by implementing dual-side inspection areas and pre-collecting passenger and crew information at sea, allowing for immediate disembarkation upon arrival [5][7]. - The station has also introduced automated monitoring and inspection robots to enhance the accuracy of port control, creating a dual-driven system of "intelligent inspection + manual service" for efficient customs clearance [5][7]. Group 3: Passenger Experience Enhancement - To improve passenger experience during simultaneous docking, the East Jiang Border Inspection Station has established multiple functional zones and dedicated channels for 240-hour and 24-hour transit visa exemptions [7]. - A "small language service team" has been formed to provide support in Japanese, Korean, and Russian, ensuring accurate guidance and meeting the diverse needs of passengers during the simultaneous docking of the two cruise ships [9].

Financial Data and Key Metrics Changes - Total revenues increased by 4% to $219.6 million compared to $211.2 million in Q1 2024 [7][14] - Income from operations was $16.8 million, including $2.5 million of nonrecurring severance expense, compared to $17 million in Q1 2024 [7][14] - Adjusted EBITDA rose by 5% to $26.6 million, which included $1.1 million of nonrecurring cash severance expense, compared to $25.3 million in Q1 2024 [8][16] - Net income was $15.3 million or $0.15 per diluted share, down from $21.2 million or $0.21 per diluted share in Q1 2024 [15][16] Business Line Data and Key Metrics Changes - Health and wellness centers operated on 199 ships, with an average ship count of 193 for the quarter, compared to 193 ships and an average of 188 ships in Q1 2024 [8][14] - Revenue per passenger per day, weekly revenue, and revenue per staff per day showed growth, driven by staff retention and enhanced sales training [11] Market Data and Key Metrics Changes - Prebooking revenue as a percentage of total revenues remained strong at 23% [12] - Increased prebooking revenues contributed $2.3 million to overall revenue growth [14] Company Strategy and Development Direction - The company aims to invest in cruise line and destination resort partnerships, innovate guest experiences, and enhance productivity [5][7] - New health and wellness centers were introduced on Norwegian Cruise Line's first PRIMA plus class ship, with plans for additional centers on eight new ships [9] - A new $75 million share repurchase program was approved, extending a previous $50 million program, reflecting a commitment to enhance shareholder value [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic economic environment and reaffirmed annual guidance [6][7] - Strong bookings and onboard spending from cruise line partners were noted, with consumers prioritizing experiences [7][20] - The company expects high single-digit revenue and adjusted EBITDA growth rates for fiscal 2025 compared to fiscal 2024 [20] Other Important Information - The company reported a strong balance sheet with total cash of $23.8 million after share repurchases and dividend payments [17] - The majority of operations are not impacted by tariffs, as products for cruise ships are held in a free trade zone [19] Q&A Session Summary Question: Understanding spend patterns on board - Management noted that there has been no significant increase in discounting and that spending continues to increase, with high demand for high-end services [25][26] Question: Full year guidance sensitivity - The low end of the guidance range assumes a moderation in spending on board, but there are no indicators suggesting a significant deterioration in spending [28][30] Question: Prebooking trends and cruise lines' willingness to invest - Prebooking remains stable at 23%, with no significant pullback from cruise lines in investing to reduce friction in prebooking engines [35][36] Question: MediSpa performance and potential slowdown - Demand for MediSpa services remains strong, with no early signs of deterioration even in high-end services [45][46] Question: Buyback sensitivity to business softening - The decision to buy back shares is based on stock value rather than business performance, indicating continued buybacks even if business softens [54][55] Question: Impact of tariffs on spending behavior - No changes in spending activity were observed immediately after tariffs were announced, as consumers continued to spend while on vacation [58][60]