Group 1 - The latest stock price of Emei Mountain A is 13.87 yuan, up 1.24% from the previous trading day, with a trading volume of 130,405 hands and a transaction amount of 1.79 billion yuan [1] - Emei Mountain A's main business includes scenic area tickets, cableway transportation, hotel services, and tourism services, operating in a UNESCO World Heritage site and a national 5A-level tourist attraction [1] - In the first half of 2025, the company reported revenue of 457 million yuan, a year-on-year decrease of 10.07%, and a net profit of 121 million yuan, down 8.48% year-on-year [1] Group 2 - The number of ticketed visitors to the scenic area was 2.0952 million, a decrease of 6.5% year-on-year [1] - The company's performing arts project "Only Emei Mountain," with a total investment of 819 million yuan, was suspended in June due to continuous losses, with the operating entity reporting a net loss of 16.138 million yuan and being insolvent [1] - On the day of reporting, the net inflow of main funds for Emei Mountain A was 15.1162 million yuan, while there was a net outflow of 45.928 million yuan over the past five days [1]

Group 1 - The core viewpoint of the news is that Emei Mountain Tourism Co., Ltd. reported a decline in revenue and net profit for the first half of 2025, alongside a decrease in tourist numbers at the Emei Mountain scenic area [1][3][6] - Emei Mountain Tourism achieved a revenue of 457 million yuan, a year-on-year decrease of 10.07%, and a net profit attributable to shareholders of 121 million yuan, down 8.48% [1] - The scenic area received 2.0952 million visitors, a decline of 6.5%, equivalent to a reduction of 146,000 visitors [1] Group 2 - The live performance project "Only Emei Mountain," which had a total investment exceeding 800 million yuan, recorded a net loss during the reporting period, with its operating subsidiary, Cloud Travel Investment Co., Ltd., generating revenue of 8.466 million yuan and a net loss of 16.138 million yuan [1][6] - The project has been in a state of loss since its inception in September 2019, with cumulative net losses from 2020 to 2024 amounting to approximately 60.58 million yuan, 74.62 million yuan, 95.39 million yuan, 228 million yuan, and 124 million yuan respectively [3][6] - The performance of "Only Emei Mountain" was suspended in mid-June 2025 due to ongoing losses [3][6] Group 3 - Despite the reported decline in ticketed visitors, the actual number of tourists received by the Emei Mountain scenic area increased to 3.0741 million in the first half of 2025, up 2.87% from 2.9859 million in the same period last year [7][9] - The scenic area also saw an increase in inbound tourists, reaching 90,000, which is a 22.9% increase [7] - The management committee of the scenic area noted that the decrease in ticketed visitors is attributed to the free access to low mountain areas since December 2021, which has led to a shift in visitor patterns [9]

Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [7]. Core Insights - The company experienced a decline in revenue due to a drop in visitor traffic, but has implemented business optimizations that have led to improved profitability [5][6]. - The company reported a total revenue of 457 million yuan for H1 2025, a decrease of 10% year-on-year, with a net profit of 121 million yuan, also down by 8% [4]. - The company is actively adjusting its operations, including the suspension of a loss-making performance project, which has contributed to a slight increase in gross margin [5][6]. Summary by Sections Financial Performance - In H1 2025, the company's gross margin decreased by 2 percentage points to 48.07%, while in Q2 2025, it increased by 1 percentage point to 49.20% [5]. - The company’s sales expense ratio remained stable, while the management expense ratio increased by 1 percentage point to 14.92% [5]. Business Adjustments - Revenue from core business segments such as mountain tickets, cable cars, and hotel services decreased by 10%, 8%, and 12% respectively, primarily due to reduced visitor traffic [6]. - The company has halted the performance project "Only Emei Mountain" to mitigate losses, and the upgrade of the Golden Summit cable car is expected to be completed by the end of 2025, enhancing visitor capacity [6]. Earnings Forecast - The company is expected to see gradual improvement in performance due to ongoing adjustments and the anticipated completion of infrastructure projects [7]. - EPS forecasts for 2025-2027 are projected at 0.50, 0.56, and 0.61 yuan respectively, with corresponding PE ratios of 27, 25, and 23 times [7].

Core Viewpoint - The article discusses the recent failure of the large-scale performance project "Only Emei Mountain," which has accumulated losses of 600 million yuan and was officially announced to be suspended as of June 15 this year. This situation reflects a broader trend of popular cultural tourism projects facing operational challenges and declining visitor numbers [4][5][6]. Group 1: Project Failures - The "Only Emei Mountain" project has incurred significant losses, leading to its suspension after an investment of over 800 million yuan [4]. - Other cultural tourism projects, such as "Super Wenheyou" in Changsha and "Wenheyou" in Shenzhen, have also seen a decline in popularity, with many areas becoming vacant and underutilized [7][8][9]. - The "Dayong Ancient City," with a total investment of 2.5 billion yuan, has reported an average daily ticket sales of fewer than 20 people, leading to its classification as an "empty city" [11][12][13]. Group 2: Common Issues - Many popular cultural tourism projects are experiencing a decline in visitor numbers, often characterized by high initial traffic that does not translate into sustained revenue [20][21]. - The phenomenon of "photo economy" tourists, who visit primarily for social media content rather than genuine engagement, contributes to the financial struggles of these projects [22][24]. - The lack of differentiation and repetitive content across various projects leads to audience fatigue, diminishing the likelihood of repeat visits [31][32]. Group 3: Market Trends - The article highlights a shift in consumer behavior, with younger audiences preferring authentic experiences over superficial attractions, indicating a need for cultural tourism projects to adapt [46][47]. - Successful projects are those that focus on genuine content and community engagement rather than merely replicating popular trends [44][52]. - The article emphasizes the importance of operational management and continuous updates to maintain visitor interest and satisfaction [49][50]. Group 4: Recommendations for Future Projects - Cultural tourism projects should prioritize storytelling and authentic experiences to attract and retain visitors, moving away from the "one-time hit" mentality [43][46]. - Local governments and developers are encouraged to adopt a long-term perspective, focusing on sustainable operations rather than short-term gains [53][54]. - The article suggests that successful cultural tourism initiatives should involve professional management and community engagement to create a lasting impact [55].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][17] Core Views - The company experienced a revenue decline of 10.07% year-on-year in the first half of 2025, with total revenue of 457 million yuan and a net profit of 121 million yuan, which improved by 8.48% year-on-year [1][2] - The company is focusing on optimizing resource allocation by pausing its performing arts projects and steadily advancing the expansion of the Jinding cableway, which is expected to double its capacity by the end of 2025 [2][4] - The company’s core business revenue, primarily from mountain tickets and passenger cable cars, saw declines of 9.53% and 7.51% respectively, while the hotel business revenue dropped by 12.13% [2][4] Summary by Sections Financial Performance - In the first half of 2025, the company reported a gross margin of 48.07%, a decrease of 1.53 percentage points year-on-year, but the second quarter saw an improvement to 49.20%, up 1.38 percentage points year-on-year due to the suspension of performing arts projects [3][4] - The company’s net profit for 2025 is projected to be 262 million yuan, with a corresponding PE ratio of 28x [5][4] Visitor Statistics - The number of visitors to the Emei Mountain scenic area decreased by 6.5% year-on-year to 2.0952 million in the first half of 2025, impacting core business revenue [2][4] Future Outlook - The company has adjusted its visitor growth forecast to -0.5% for 2025, with revenue growth projections revised to -3.0% for 2025 and 7.8% for 2026 [4][5] - The strategic focus on the Jinding cableway expansion is expected to enhance reception capacity and open up new profit avenues [4][2]

Core Viewpoint - The financial performance of Emei Mountain A has declined in the first half of 2025, attributed to a decrease in visitor numbers and revenue from core businesses [2][3]. Financial Performance - Emei Mountain A reported a revenue of 457 million yuan, a year-on-year decrease of 10.07% [2]. - The net profit attributable to shareholders was 121 million yuan, down 8.48% year-on-year [2]. - The net profit after deducting non-recurring items was 119 million yuan, a decline of 9.65% [2]. - The gross profit margin fell by 1.53 percentage points to 48.07% [2]. - In Q2, revenue decreased by 9.27% to 231 million yuan, while net profit increased by 7.42% to 62.39 million yuan [2]. Visitor Statistics - The total number of visitors to Emei Mountain Scenic Area was 2.0952 million, a year-on-year decrease of 6.5% [2]. - Revenue from mountain ticket sales was 122 million yuan, down 9.53% [2]. - Revenue from the cable car business was 185 million yuan, a decrease of 7.51% [2]. - Revenue from hotel services fell by 12.13% to 82.7253 million yuan [2]. Business Segment Performance - The gross profit margins for the three main businesses (ticket sales, cable car, and hotel services) all declined, with respective margins of 46.47%, 79.45%, and 5.37% [2]. - The tea business saw a revenue decline of 33.92% to 27.41 million yuan [3]. - The performing arts revenue increased by 1.38% to 5.3992 million yuan, but the main project "Only Emei Mountain" was suspended, leading to no income [3]. Project and Investment Insights - The suspension of "Only Emei Mountain" is linked to financial pressures faced by its operating company, which has a loan of 560 million yuan due in 2036 [4]. - The operating entity, Yunshang Lvtou, reported a net loss of 16.1383 million yuan in the first half of 2025 [3][4]. - The big data business showed resilience, with a slight revenue decline of 2.31% but a net profit increase of 107.21% to 19,600 yuan [4]. Future Prospects - Emei Mountain A is exploring new business models, including tea beer and collaborations with cultural brands [4][5]. - The company is optimistic about future growth due to the scenic area's natural resources and ongoing infrastructure improvements [5].