Core Viewpoint - Jiuhua Tourism reported a significant increase in both revenue and net profit for the first half of 2025, while also facing scrutiny regarding its planned fundraising and investment projects [1][2][3]. Financial Performance - In the first half of 2025, Jiuhua Tourism achieved an operating income of 483 million yuan, representing a year-on-year increase of 22.26% [2]. - The net profit attributable to shareholders was 142 million yuan, up 23.96% year-on-year, with basic earnings per share at 1.2802 yuan, reflecting a 23.97% increase [2]. Business Segments - Jiuhua Tourism's main business segments include hotels, cable cars, passenger transport, and travel agencies, although specific revenue figures for each segment were not disclosed [2]. - The company operates eight hotels in the Jiuhua Mountain scenic area, focusing on the mid-to-high-end market, and manages three cable car lines [2]. Fundraising and Investment Projects - Jiuhua Tourism plans to raise 500 million yuan through a private placement to fund several projects, including the Jiuhua Mountain Lion Peak scenic area cable car project and hotel renovation projects [3][4]. - The company has made progress on these projects, completing necessary approvals and bidding processes for the cable car and hotel upgrades [3][4]. Challenges and Concerns - The company has faced questions from the stock exchange regarding the necessity of the fundraising, the declining profit margins in its hotel business, and the legal uncertainties surrounding the cable car project's land use [3][5]. - Jiuhua Tourism acknowledged that the decline in hotel business margins is primarily due to increased depreciation costs and intense industry competition, but stated that the renovation projects would not increase room capacity and would not adversely affect the fundraising initiatives [5].

Core Viewpoint - Jiuhua Tourism (603199) has responded to the Shanghai Stock Exchange's inquiry regarding its planned private placement, highlighting uncertainties related to the core fundraising project, the Jiuhua Mountain Lion Peak Scenic Area cable car project, and the long payback periods for two hotel renovation projects [1][2]. Fundraising and Project Details - The company plans to raise 500 million yuan for the Jiuhua Mountain Lion Peak Scenic Area cable car project, Jiuhua Mountain Julong Hotel renovation project, Jiuhua Mountain Center Hotel North Building room upgrade project, and transportation equipment enhancement project [1]. - The core project, the Jiuhua Mountain Lion Peak Scenic Area cable car project, has a planned investment of 326 million yuan and will construct a 2,150-meter-long cable car [1][2]. - The land for the cable car project is currently in the bidding process, with the bidding period set from August 25 to September 4, 2025, which introduces uncertainty regarding the overall construction timeline [1]. Revenue and Profitability Projections - Upon completion, the cable car project is expected to make the Lion Peak Scenic Area the second core scenic area of Jiuhua Mountain, alleviating pressure on the existing central scenic area [2]. - The first-year revenue for the cable car project is projected to be 35.84 million yuan, increasing to 221 million yuan by the fifteenth year, with a gross margin improving from -26.51% in the first year to 71.69% [2]. - The average annual revenue for the project is estimated at 111 million yuan, with a post-tax net profit of 37 million yuan [2]. Hotel Renovation Projects - The Jiuhua Mountain Julong Hotel renovation project and the Jiuhua Mountain Center Hotel North Building room upgrade project will not increase the number of rooms but will enhance room prices [2]. - Post-renovation, the average room price for the Julong Hotel is expected to rise from 788 yuan in 2024 to 1,100 yuan, generating an additional annual income of 18.49 million yuan with a gross margin of 42.91% [2]. - The average room price for the Center Hotel is projected to increase from 275 yuan to 515 yuan, contributing an additional annual income of 5.66 million yuan with a gross margin of 22.24% [2]. Depreciation and Financial Impact - The two renovation projects will require investments of 131 million yuan and 52 million yuan, respectively, with estimated annual post-tax profits of 7.35 million yuan and 2.24 million yuan, indicating a long payback period [3]. - The regulatory body has requested the company to clarify the impact of new asset depreciation on future operating performance, noting that depreciation will peak at 39.62 million yuan, representing 5.18% of projected revenue and 16.03% of projected profit for 2024 [3].

Group 1 - The company plans to issue A-shares to specific investors, including its controlling shareholder, Wenlv Group, with a maximum of 35 investors [1] - Wenlv Group intends to subscribe for at least 32% of the total shares issued in cash, with the subscription price set at no less than 80% of the average trading price of the company's A-shares over the 20 trading days prior to the pricing benchmark [1] - The total number of shares to be issued will not exceed 30% of the total share capital before the issuance, amounting to a maximum of 33.204 million shares [1] Group 2 - The raised funds will be allocated to several projects, including the passenger cableway project at Lion Peak Scenic Area, the renovation of Julong Hotel, the upgrade of guest rooms in the North Building of the Central Grand Hotel, and the enhancement of transportation equipment [1]