Core Viewpoint - Xi'an Tourism has decided to terminate its plan for a private placement of shares in 2024 due to changes in the background, purpose, and basis of the issuance, influenced by the hotel industry's situation and the company's operational performance [1][4]. Group 1: Company Performance - Xi'an Tourism has reported continuous net profit losses for four consecutive years, with a total loss of 6.54 billion yuan from 2021 to 2024 [5]. - The company's asset-liability ratio has been steadily increasing, reaching 93.55% in the first three quarters of 2025, up from 68.16% in 2022 [5]. - In the first half of 2025, the company's revenue decreased by 13.5% to 2.18 billion yuan, while it still recorded a net loss of 55.99 million yuan [5]. Group 2: Hotel Business and Market Conditions - The hotel business revenue for Xi'an Tourism saw a significant increase of 241.91% in 2023, but this growth did not continue into 2024, with revenues dropping by 9.92% and 26.87% in the first half of 2024 and 2025, respectively [3][4]. - The company had planned to invest in 17 new direct-operated hotels in major cities, but the changing competitive landscape and consumption trends in the hotel industry have led to a reassessment of this strategy [3][4]. - The hotel industry is currently in a phase of stock integration, with chain hotels benefiting from financial support and better resilience compared to single hotels [3]. Group 3: Fundraising and Financial Strategy - Initially, Xi'an Tourism aimed to raise up to 600 million yuan through a private placement, with 421 million yuan allocated for the direct-operated hotel expansion project [2]. - Following the termination of the share issuance, the company plans to raise up to 300 million yuan from its controlling shareholder, Xili Group, to alleviate financial pressure and improve its financial condition [6]. - The company's stock price has seen a rise following the announcement of the fundraising plan, with a current market capitalization of approximately 3 billion yuan [6].