Core Insights - During the 2025 "May Day" holiday, Xi'an's cultural tourism sector showed significant growth, with a total of 14.75 million visitors, representing a year-on-year increase of 5.2%, and total tourism revenue reaching 12.334 billion yuan, up 7.55% [1] Group 1: Cultural and Historical Attractions - Over 20 cultural and historical venues in Xi'an operated in "extended hours" mode, effectively increasing their capacity to receive visitors [2] - Major attractions like the Terracotta Army Museum, Shaanxi History Museum, and Xi'an Museum saw visitor numbers of 333,900, 69,200, and 83,800 respectively, with year-on-year growth rates of 16.1%, 19.9%, and 125.8% [2] - The overall reception of 3A-level and above scenic spots reached 7.8158 million visitors, a 2.4% increase year-on-year [2] Group 2: Performing Arts - A total of 803 performances were held across 19 major theaters, marking a 29.7% increase [3] - New productions like "The Legend of the Camel Bell" and "The Fire of the Ancient City" attracted significant audiences, with the latter receiving 44,000 visitors [3] - The "Chang'an Love" performance saw a 4.2% increase in attendance, with 56,000 visitors during the holiday [3] Group 3: Integrated Business Models - The Xi'an SKP mall hosted a non-heritage food festival and various promotional activities to enhance consumer engagement [6] - A "big gift package" was distributed during the auto show, which included discounts for scenic spots and performances, leading to over 19,000 vehicle sales [6] - New immersive experiences and XR products were well-received, with significant growth in the delivery of cultural tourism-related packages [6] Group 4: Collaborative Development - Measures such as visitor flow control in popular areas improved the overall visitor experience [7] - The Long'an Academy and "Reading+" initiatives hosted unique events that boosted tourism in their respective areas [7] - Tourist numbers in the Xixian New Area and other scenic spots saw substantial year-on-year increases, indicating a more balanced development in the cultural tourism landscape [7] Group 5: Urban Tourism Dynamics - Popular tourist streets and cultural districts like the Four Seas Tangren Street and North Courtyard Gate saw increased visitor interest [8] - The addition of new entrances to the city wall enhanced tourism around the area, contributing to a 5% revenue increase for surrounding commercial complexes [8] - Core areas in Lianhu District experienced over a 10% increase in foot traffic due to promotional activities [9]

Group 1 - The tourism market in Shaanxi is experiencing significant growth during the "May Day" holiday, with increased consumer engagement in dining, shopping, and entertainment [1] - Red tourism, particularly in sites like Yan'an, is gaining popularity among young people, who are seeking immersive experiences related to revolutionary history [1] - The newly launched immersive performance "Defending Yan'an" features seven interactive scenes, enhancing visitor engagement through a multi-sensory experience [1] Group 2 - Cultural experiences such as museum visits and traditional performances are showcasing the rich heritage of Shaanxi, attracting a diverse audience [2] - Major museums in Shaanxi are optimizing services by increasing ticket prices and extending opening hours to accommodate rising visitor numbers [2] - The "Tang Palace" scenic area has organized a series of immersive cultural activities, blending traditional performances with interactive elements to enhance visitor experience [2] Group 3 - The large-scale performance "The Eternal Song of Xi'an" has set new records for daily shows and audience numbers during the holiday period [3] - There has been a notable increase in foreign tourists visiting Xi'an, contributing to the local economy and cultural exchange [3] - Shaanxi is promoting inbound tourism through multilingual promotional materials and curated travel packages, with a significant rise in inbound tour groups compared to the previous year [3]

Core Insights - Songcheng Performance reported significant revenue and net profit growth in its 2024 annual report, solidifying its leading position in the cultural tourism industry [2] Financial Performance - The company achieved a revenue of 2.417 billion yuan, representing a year-on-year increase of 25.49% [2] - Net profit attributable to shareholders reached 1.049 billion yuan, marking a turnaround with a substantial growth of 1054.18% compared to the previous year, accounting for 60% of the total net profit of 22 cultural tourism enterprises in the market [2] - Operating cash flow net amount was 1.445 billion yuan, exceeding net profit levels, indicating high profit quality and a stable financial condition [2] Business Segments - The live performance segment, as the core business, generated 1.959 billion yuan, accounting for 81.03% of total revenue, with a year-on-year growth of 17.50% [3] - New theme parks, such as the Guangdong and Three Gorges Qian Guqing scenic areas, performed exceptionally well, with the Guangdong site achieving profitability in its first year and hosting 1,386 performances of its core show [3] - The Three Gorges scenic area generated over 100 million yuan in revenue within 100 days, boosting local tourism revenue by over 40% [3] Competitive Advantages - The company has established a solid competitive barrier through its unique "theme park + cultural performance" model, which enhances customer engagement and revenue [4] - It benefits from favorable policies in the cultural tourism sector, positioning itself as a pioneer in cultural integration and tourism development [4] - The company has a strong creative capability and a complete industry chain from project selection to operation, ensuring project success and continuous innovation [4] Innovation and R&D - Songcheng Performance emphasizes R&D, with an investment of 41.2553 million yuan in 2024, a year-on-year increase of 37.48% [5] - Ongoing R&D projects focus on enhancing performance quality and visitor experience through advanced stage effects and safety measures [5] Future Outlook - The company plans to continue focusing on its live performance core business, enhancing operational precision and distinctive management [5] - It aims to create a diverse content ecosystem and upgrade existing scenic areas while integrating creative methods and technology for immersive experiences [5] Marketing and Brand Strategy - The company will leverage promotional strategies and new media to enhance brand exposure and market share [6] - It aims to improve service quality and strengthen communication with investors to enhance market image and value [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance met expectations, showing steady expansion with a focus on new project development and marketing efforts [1][5] - The company achieved a revenue of 2.417 billion yuan in 2024, a year-on-year increase of 25.49%, and a net profit of 1.049 billion yuan, marking a turnaround from losses [5] - New projects, particularly in Guangdong and Xi'an, have shown strong performance, contributing significantly to revenue growth and market presence [5] Financial Summary - Revenue projections for 2025-2027 are 2.739 billion yuan, 3.079 billion yuan, and 3.332 billion yuan, representing year-on-year growth rates of 13.30%, 12.41%, and 8.23% respectively [5][6] - Net profit estimates for the same period are 1.186 billion yuan, 1.346 billion yuan, and 1.466 billion yuan, with growth rates of 13.07%, 13.52%, and 8.91% respectively [5][6] - The company reported a gross margin of 46.39% in Q4 2024, an increase of 6.82 percentage points year-on-year [5]