Core Viewpoint - The water tourism service market in China is rapidly growing, driven by rising living standards and a shift towards personalized and diverse travel experiences, with projected revenue reaching 10.2 billion yuan in 2024, a 16% increase year-on-year [1][9]. Overview - Water tourism services involve providing sightseeing, leisure, and experiential services through various watercraft in natural or artificial water bodies, focusing on the combination of "water scene" and "tourism experience" [2][4]. Market Policies - The Chinese government has implemented several policies to support the development of the tourism industry, including water tourism services, creating a favorable environment for growth [6][7]. Industry Chain - The water tourism service industry consists of upstream sectors like shipbuilding and maintenance, midstream service providers, and downstream consumers, including both individual and group travelers [7][8]. Current Development - The water tourism service market is experiencing significant growth, with a projected revenue of 10.2 billion yuan in 2024, driven by the emergence of diverse business models such as "cruise + dining performance" and "cruise + education" [1][9]. Competitive Landscape - The market is fragmented with over 270 service providers, where the top 10 companies hold approximately 28.2% market share [11]. Notable companies include: - Hubei Three Gorges Tourism Group, focusing on integrating tourism and transportation, with a revenue of 370 million yuan in the first half of 2025 [12]. - Jiangsu Shouxihu Cultural Tourism Co., primarily operating in the Yangzhou area, with a total revenue of 112.32 million yuan in 2024, where cruise income accounted for 85.5% [13]. Development Trends - Future trends indicate a shift towards high-end, themed, and personalized water tourism products, with increasing integration of cultural, sports, and educational elements into the industry [14].

Core Viewpoint - Jiangsu Shouxihu Cultural Tourism Co., Ltd. (Shouxihu Wenlv) has submitted its prospectus to the Hong Kong Stock Exchange for an IPO, highlighting significant revenue and profit growth in the context of the ongoing cultural tourism boom [3][6][10]. Financial Performance - From 2022 to 2024, Shouxihu Wenlv's revenue is projected to grow from 31.236 million RMB to 111.428 million RMB, with a compound annual growth rate (CAGR) of 88.87%. Net profit is expected to increase from 3 million RMB to 43 million RMB, with a CAGR of 279.35% [6][9]. - In the first half of 2025, the company estimates revenue of 84.542 million RMB [9]. Business Segments - The company operates primarily in three segments: water sightseeing boat services, sightseeing vehicle services, and management services. The water sightseeing boat service is the core revenue driver, contributing approximately 88.3% to total revenue from 2022 to 2024 [8][10]. - In the first half of 2025, revenue from water sightseeing boat services accounted for 85.6% of total revenue [9]. Market Position - Shouxihu Wenlv is the only licensed water sightseeing operator in Yangzhou, holding a 20-year exclusive operating right in the Shugang-Shouxihu scenic area. It occupies the second position in Jiangsu's water sightseeing market, with a market share of 16% [10][9]. Unique Selling Proposition - The company leverages the unique cultural experience provided by its boatwomen, who not only row but also narrate stories and sing, enhancing the tourist experience [11][13]. - The company has diversified its offerings 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 [20][17]. Future Prospects - Shouxihu Wenlv is expanding its operations beyond the Shouxihu area, launching a new project along the Grand Canal that combines sightseeing with cultural performances, aiming to enhance its market presence [22][23]. - The company is also exploring management service opportunities in other tourist areas, indicating a strategy to diversify its revenue streams [23][20]. Industry Context - The trend of scenic spots going public is not new, with companies like Zhangjiajie and Emei Mountain already listed. However, Shouxihu Wenlv's approach focuses on leveraging its unique scenic resources and related services to adapt to regulatory constraints [24][26]. - Despite the overall recovery in the cultural tourism sector, many listed tourism companies are still facing profitability challenges, highlighting the need for effective business strategies to convert tourism growth into financial success [29][30].

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 company, Jiangsu Shouxihu Cultural Tourism Co., Ltd. (Shouxihu Wenlv), is preparing for an IPO on the Hong Kong Stock Exchange, focusing on its water tourism services, which have shown growth potential despite recent profit fluctuations [1][2]. Financial Performance - In 2022, 2023, and 2024, the company's revenue was approximately 31.46 million, 109.09 million, and 111.43 million RMB, respectively, with net profits of 2.98 million, 46.43 million, and 42.87 million RMB [5]. - The company experienced an 8% decline in net profit in 2024 despite a slight revenue increase of about 2% [5]. - The revenue from water tourism services accounted for 88.3%, 87.2%, 86.2%, and 85.6% of total revenue from 2022 to the first half of 2025 [5]. Business Segments - The company's operations are primarily divided into three segments: water sightseeing services, sightseeing vehicle services, and scenic area management services [3]. - Water sightseeing services remain the core revenue source, with ticket sales in Jiangsu province accounting for approximately 16% of the market, ranking second in the province [3][5]. Market Trends - The water tourism market in China is projected to grow from approximately 10.2 billion RMB in 2024 to 18.8 billion RMB by 2029, with a compound annual growth rate of about 13% [1]. - The company has been diversifying its offerings, including the introduction of sightseeing vehicle services and cultural performances [3][5]. Cost Structure - The company's sales costs increased by approximately 22% in the first half of 2025, reaching 31 million RMB, impacting the gross margin, which fell from 59% in 2023 to 54% in 2024 [6]. - The management service revenue remains low, accounting for only 5.1% of total revenue in 2024, with a declining gross margin [6][9]. Sales Channels - The company has increased its reliance on third-party sales channels, with ticket sales through these platforms rising from 12.8% in 2023 to 33.2% in the first half of 2025 [9]. - Key third-party platforms include Meituan, Ctrip, Douyin, and Tongcheng, which are crucial for ticket sales and brand exposure [9]. Risks and Challenges - The company's operations are heavily concentrated in Jiangsu province, making it vulnerable to regional economic fluctuations and environmental changes [8]. - Seasonal fluctuations in tourist traffic significantly impact cash flow and profitability, with peak seasons contributing 40-50% of annual revenue [7][8].

Core Insights - Jiangsu Shouxihu Cultural Tourism Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, with Everbright Securities International as the sole sponsor [1][6] - The company is the second-largest water tourism service provider in Jiangsu Province, led by Chairwoman Xu Shunmei, who has a background as a tour guide [1][4] Company Overview - Shouxihu is recognized as the first national 5A-level tourist attraction in Yangzhou, with a history dating back to the Sui Dynasty [2][4] - The company was established in 2006 to unify the operation of water tourism services, initially offering basic sightseeing services [4][6] Business Development - The company has expanded its services to include various water tourism routes and immersive cultural tourism products since 2012 [4][6] - Xu Shunmei has been instrumental in developing the brand and enhancing the service offerings, including dining and retail experiences [4][6] Financial Performance - Revenue projections for 2022, 2023, and 2024 are approximately RMB 31.24 million, RMB 109.10 million, and RMB 111.43 million, respectively, with a compound annual growth rate of about 89% [7][8] - The net profit for the same years is projected to be RMB 2.98 million, RMB 46.43 million, and RMB 42.88 million [8] Revenue Breakdown - The water sightseeing service remains the primary revenue source, contributing approximately 88.3%, 87.2%, and 86.2% of total revenue over the past three years [9] - The company operates 206 boats, with a maximum daily capacity exceeding 35,000 passengers during peak seasons [9] Market Position - Shouxihu ranks second in Jiangsu's water tourism market, holding approximately 16% market share in ticket sales [9]

Core Viewpoint - Jiangsu Shouxihu Cultural Tourism Co., Ltd. is preparing for an IPO on the Hong Kong Stock Exchange, reflecting the booming cultural tourism industry in China, particularly highlighted by the recent surge in domestic travel during the Golden Week holiday [4][15]. Company Overview - Shouxihu, located in Yangzhou, is the second-largest water tourism service provider in Jiangsu Province, founded in 2006 to unify the operation of water tourism services [4][7]. - The company is led by Xu Shunmei, who has transitioned from a tour guide to the chairwoman, significantly contributing to the brand's development and operational management [5][7]. Business Development - The company has evolved from basic sightseeing services to a comprehensive water tourism experience, including themed boat tours and immersive cultural products [7][12]. - Shouxihu's revenue has shown significant growth, with projections of CNY 0.31 billion, CNY 1.09 billion, and CNY 1.11 billion from 2022 to 2024, reflecting a compound annual growth rate of approximately 89% [12][13]. Revenue Sources - The primary revenue source remains the water sightseeing service, contributing approximately 88.3%, 87.2%, and 86.2% of total revenue over the past three years [12][13]. - The company operates 206 boats, including 36 rowing boats, with a maximum daily capacity exceeding 35,000 visitors during peak seasons [13]. Market Position - As of 2024, Shouxihu ranks second in Jiangsu's water tourism market, holding approximately 16.0% of the ticket sales market share [14]. - The company has diversified its offerings, including a new performance-based boat tour launched in October 2024, which has already contributed significantly to revenue growth [14]. Industry Trends - The recent Golden Week holiday saw unprecedented travel activity, with over 1.24 billion people traveling, indicating a strong recovery and growth potential in the tourism sector [15][16]. - Young travelers are increasingly driving tourism trends, seeking personalized and experiential travel options, which aligns with Shouxihu's offerings [16][17].

Core Insights - The tourism consumption in China is projected to reach 5.8 trillion yuan in 2024, with expectations to exceed 10 trillion yuan by 2029, reflecting a compound annual growth rate (CAGR) of 12% from 2024 to 2029 [1] Company Overview - Jiangsu Shouxihu Cultural Tourism Co., Ltd. (referred to as "Shouxihu") has submitted an IPO application to the Hong Kong Stock Exchange, with Everbright Securities International as the sole sponsor [2] - Shouxihu operates water sightseeing services primarily in the famous scenic area of Shouxihu in Yangzhou, which is distinct from Hangzhou's West Lake [2][3] Revenue Sources - Over 80% of Shouxihu's revenue comes from water sightseeing services, with the signature rowing boat being a key offering [3] - The company provides various types of watercraft services, including rowing boats, self-driving boats, and themed boats, with rowing boats being the most popular among tourists [4][7] - In 2022, 2023, and 2024, water sightseeing services contributed more than 85% of the company's revenue, indicating a heavy reliance on this segment [8] Financial Performance - Shouxihu's revenue has shown an upward trend, with figures of approximately 31 million yuan in 2022, 109 million yuan in 2023, and 111 million yuan in 2024, while net profits have fluctuated [16] - The gross profit margin has varied, with rates of 21.8% in 2022, 59% in 2023, and 54.4% in 2024, reflecting the impact of operational costs and market conditions [16] Market Dynamics - The water sightseeing service market in China is expected to grow from 10.2 billion yuan in 2024 to 18.8 billion yuan by 2029, with a CAGR of approximately 13% [18] - In Jiangsu province, the market is projected to grow from 650 million yuan in 2024 to about 976 million yuan by 2029, with a lower CAGR of 8.5% compared to the national average [20] - Shouxihu ranks second in Jiangsu's water sightseeing market with a market share of about 16% and is ranked tenth nationally with a market share of approximately 1% [20] Operational Challenges - The company faces challenges due to its reliance on ticket sales and the potential for shifts in consumer preferences or increased competition from alternative entertainment options [8][18] - The operational focus is primarily in Yangzhou, making the company susceptible to regional economic fluctuations and regulatory changes [18] Management and Ownership - Shouxihu is controlled by the Yangzhou government, which holds approximately 89.99% of the shares, indicating strong local government support [23] - The management team has extensive experience in the cultural tourism industry, with key executives having backgrounds in various relevant roles [25]

Summary of Key Points Core Viewpoint The Hong Kong stock market has seen significant activity from September 21 to September 27, with 25 companies submitting prospectuses, 3 companies passing hearings, and 2 new stocks successfully listed. Group 1: Companies Submitting Prospectuses - A total of 25 companies submitted listing applications to the Hong Kong Stock Exchange during the specified period, including major players like 大洋电机, 天赐材料, and 格林美 [2][4][5] - Notably, 12 of these companies have already listed on the A-share market, indicating a trend towards dual listings in both A and H shares [2][4] Group 2: Companies Passing Hearings - Three companies successfully passed hearings: 长风药业, 挚达科技, and 金叶国际 [30] - 长风药业 focuses on biopharmaceuticals for respiratory diseases, with projected revenues of 6.08 billion RMB in 2024 [31] - 挚达科技 is the largest provider of home electric vehicle charging stations globally, with revenues of 5.9 billion RMB in 2024 [32] - 金叶国际 is a long-established electromechanical engineering contractor, specializing in HVAC systems [33] Group 3: Companies in the IPO Process - Five companies are currently in the IPO process, including 长风药业, 紫金黄金国际, 西普尼, 博泰车联, and 奇瑞汽车 [34] - 奇瑞汽车 successfully listed on September 25, with a first-day stock price increase of 13.75% [41][43] Group 4: Financial Performance of Companies - 大洋电机 reported total revenues of approximately 109.3 billion RMB in 2022, with a projected increase to 121.13 billion RMB in 2024 [5] - 天赐材料's revenues were approximately 223.17 billion RMB in 2022, expected to decline to 125.18 billion RMB in 2024 [6] - 格林美's revenues were around 293.92 billion RMB in 2022, projected to reach 332.00 billion RMB in 2024 [7] - 万辰集团, a leading snack and beverage retailer, reported revenues of 5.49 billion RMB in 2022, with a significant increase to 323.29 billion RMB in 2024 [10] Group 5: Market Trends and Insights - The trend of companies seeking dual listings in both A and H shares is becoming more prevalent, reflecting a strategic move to access broader capital markets [2][4] - The overall activity in the Hong Kong IPO market indicates a robust interest from companies looking to capitalize on the favorable market conditions [2][30]

Business Model - The company operates as a state-owned comprehensive water tour service provider, primarily in the Yangzhou Shugang - Shouxihu Scenic Area and the Ancient Canal region, holding exclusive operational rights for water tours for 20 years and in the Ancient Canal area without time limits, capturing a 16.0% market share in Jiangsu's water tour service market [1] Diversified Business Collaboration - In addition to water tour services, the company offers sightseeing bus services and management services, with a fleet of 206 boats and 25 buses, and has introduced innovative service models such as "Boat+" and charter services [2] Financial Performance - The company's revenue has seen significant growth, with total revenues projected at approximately RMB 31 million, RMB 109 million, and RMB 111 million for 2022, 2023, and 2024 respectively, marking a 249.3% increase in 2023 compared to 2022 due to the rebound in tourism post-pandemic and the exclusive operation of sightseeing bus services starting August 2022 [3] - Net profit for the same period is projected at approximately RMB 3 million, RMB 46 million, and RMB 43 million, with a staggering increase of 1,458.1% in 2023 compared to 2022, but a decline of about 7.6% in 2024 due to rising costs [4] Profitability Metrics - Gross margin and net margin have shown volatility, with gross margins of 21.8%, 59.0%, and 54.4% for 2022, 2023, and 2024 respectively, and net margins of 9.5%, 42.6%, and 38.5% for the same years, indicating a significant rise in 2023 followed by a decrease in 2024 [5][6] Revenue Composition - Water tour services remain the primary revenue source, contributing approximately RMB 28 million, RMB 95 million, and RMB 96 million for 2022, 2023, and 2024 respectively, accounting for 88.3%, 87.2%, and 86.2% of total revenue [6][7] Management Team - The company's board consists of nine directors, including six executive directors with extensive experience in the cultural tourism industry, ensuring strong leadership and operational oversight [8] Compensation Growth - The total compensation for directors and senior management has increased significantly, with a 200% rise in 2023 compared to 2022, raising concerns about cost control despite the potential for attracting talent [9]