Summary of Conference Call Notes on Huangshan Tourism Company Overview - **Company**: Huangshan Tourism - **Industry**: Hospitality and Tourism Key Points Investment in High-End Hotel Project - The company plans to invest approximately **530 million CNY** (5.3 billion) in the construction of a hotel project located at **No. 12, Binjiang East Road, Huangshan**. The main structure has been completed, and the investment will focus on structural reinforcement, space optimization, interior decoration, and enhancing high-end hotel facilities. The construction period is expected to last **24 months** [1][3]. Location and Strategic Importance - The project is situated in the **core business district** of Huangshan city, adjacent to the **Xin'an River**, making it a scarce riverside property [2][5]. - The site is strategically important as it fills a gap in the company's portfolio for high-end cultural and tourism complexes in the city center [6]. Cost and Financial Implications - The project was acquired at a relatively low cost of approximately **165 million CNY** (1.65 billion) through judicial auction at the end of **2024**, allowing the company to secure an **80,000 square meter** asset in a prime location with the main structure already completed. This results in a low unit cost for the property [6]. - The project is not expected to impact short-term performance, with completion and operational launch projected for **2028**. However, it is anticipated to enhance the company's high-end business offerings in the long term [6]. Additional Hotel Developments - The company is also expanding its hotel portfolio with new projects: 1. **Hot Spring Resort Hotel**: Scheduled to be leased from the controlling shareholder by the end of **2025**, this project will include over **300 rooms** and is located within **1.5 km** of the YUPING cableway and **6 km** from the YUNGU cableway, positioned in a prime scenic area. This project is expected to provide significant profit potential [7]. 2. **Beihai Hotel**: Recently reopened in **September 2025** after a **7-year renovation**, this hotel features approximately **210 rooms** and is positioned as the highest-end "cultural tourism" flagship hotel at the mountain top, projected to generate tens of millions in profit [7]. Market Demand and Future Outlook - The company is focusing on expanding its presence in the hotel sector, particularly in core scenic areas where demand is high, making these projects lucrative opportunities [8].