Core Viewpoint - Shaanxi Tourism Culture Industry Co., Ltd. has successfully passed the listing review and will be listed on the Shanghai Stock Exchange, marking a significant step in the acceleration of the listing process in Shaanxi Province [1] Company Overview - Shaanxi Tourism integrates tourism performances, cable cars, dining, and project investment and management, leveraging resources like Huaqing Palace and Mount Huashan to create high-quality cultural tourism experiences [2] - The company plans to issue up to 19.33 million shares, raising approximately 1.555 billion yuan for projects including the expansion of Taishan Xiucheng and Shaohua Mountain National Forest Park cable cars, as well as acquisitions related to tourism assets [2] Financial Performance - The company reported revenues of 1.088 billion yuan, 1.263 billion yuan, and 889 million yuan for the years 2023, 2024, and the first nine months of 2025, respectively, with net profits of 427 million yuan, 512 million yuan, and 369 million yuan, indicating steady growth [3] - Shaanxi Tourism ranks among the top two in net profit within the tourism and scenic area sector, showcasing strong profitability compared to the industry median [3] Industry Context - The domestic tourism market is experiencing significant growth, with a reported 4.998 billion trips taken by residents in the first three quarters of 2025, a year-on-year increase of 18% [5] - The cultural and tourism integration market in China is projected to grow from approximately 600 billion yuan in 2022 to 2.32 trillion yuan by 2024, highlighting the increasing importance of cultural consumption in tourism spending [5] - Shaanxi Tourism is enhancing its cultural tourism integration, with projects like "Chang Hen Ge" setting industry standards and filling gaps in the market for red cultural tourism performances [5]

Core Viewpoint - Shaanxi Tourism Cultural Industry Co., Ltd. is preparing for an IPO to raise 1.555 billion yuan, showcasing its profitability in the tourism sector despite challenges faced by peers in the industry [3][4]. Financial Performance - In 2024, the company reported revenue of 1.245 billion yuan and a net profit of 503 million yuan, making it one of the few profitable cultural tourism enterprises in the region [3]. - Revenue figures for the years 2022 to 2024 were 224 million yuan, 1.071 billion yuan, and 1.245 billion yuan, respectively, while net profits were -74.42 million yuan, 418 million yuan, and 503 million yuan [4]. Revenue Sources - The company heavily relies on the performance of the show "Chang Hen Ge," which contributed over 50% of its revenue in 2024, with ticket prices ranging from 198 yuan to 988 yuan [5][6]. - "Chang Hen Ge" had 947 performances in 2024, attracting 2.4935 million visitors and achieving an attendance rate of 87.77% [5]. Project Financing - The IPO proceeds of 1.555 billion yuan will be allocated to seven projects, with the largest investment of 729 million yuan going to the second phase of the Tai Mountain Show City project [4]. - The first phase of the Tai Mountain Show City project has not performed well, with the "Railway Guerrilla" show generating less than 1% of total revenue over the past three years [4]. Industry Comparison - Compared to peers like Huangshan Tourism and Lijiang Co., Shaanxi Tourism has lower liquidity ratios and higher debt ratios, indicating potential financial vulnerabilities [9][10]. - The company has a high asset-liability ratio of 34.45%, significantly above the industry average of 18.11% [10]. Operational Risks - The company acknowledges potential risks related to audience fatigue and declining market appeal, which could hinder its long-term innovation and growth [7]. - There are concerns regarding the stability of the performance venue for "Chang Hen Ge," as the operating rights are held by the Huaqing Palace Company until August 5, 2034, without rental payments required [12].