Core Viewpoint - Jiangsu Tianmu Lake Tourism Co., Ltd. reported a decrease in revenue and profit for the first half of 2025, while net profit attributable to shareholders increased, indicating resilience in profitability despite challenging market conditions [2][5]. Company Overview and Financial Indicators - The company achieved operating revenue of CNY 246.31 million, a decrease of 6.49% compared to the same period last year [2]. - Total profit amounted to CNY 81.75 million, down 2.04% year-on-year [2]. - Net profit attributable to shareholders was CNY 54.73 million, reflecting a 4.12% increase from the previous year [2]. - The company's net assets stood at CNY 1.33 billion, a slight decrease of 0.62% from the end of the previous year [2]. - Total assets decreased by 1.28% to CNY 1.76 billion [2]. Industry and Main Business Analysis - The cultural tourism industry demonstrated strong resilience and structural upgrades amid a complex macroeconomic environment, with domestic and outbound tourism markets showing positive trends [3][4]. - There is a growing demand for quality and diversified tourism experiences, with a shift towards deep experiences and personalized services [3][4]. - County-level tourism is emerging as a new growth engine, with significant revenue growth in third and fourth-tier cities [3][4]. - Different age groups exhibit distinct travel preferences, with younger generations favoring personalized and immersive travel experiences [3][4]. Main Business Operations - The company aims to be a "one-stop cultural tourism model practitioner" and has developed various tourism projects, including three national AAAAA-level scenic spots and a theme park [5][6]. - Key attractions include Tianmu Lake Scenic Area, Nanshan Bamboo Sea, and Yushui Hot Spring, each offering unique experiences and continuous upgrades to enhance visitor engagement [5][6]. - The company has diversified its offerings to include themed hotels, cultural experiences, and wellness tourism, catering to various market segments [5][6]. Management Discussion and Analysis - The company has focused on optimizing product structure and enhancing high-value service offerings to mitigate revenue pressures [9][10]. - Digital transformation initiatives have been implemented to improve operational efficiency and customer service [10][11]. - The company is actively pursuing new project developments and upgrades to existing facilities to enhance competitiveness and visitor experience [11][12]. Competitive Advantages - The company has established a robust one-stop tourism model that emphasizes product diversity and service integration [12][13]. - Strong operational capabilities in planning, construction, and management of tourism projects contribute to sustained profitability [13][14]. - The company benefits from a stable management team with extensive industry experience, enhancing its ability to adapt to market changes [15][16].

Core Viewpoint - The company experienced a decline in revenue and net profit in 2024, with a slight recovery in Q1 2025, indicating challenges in the external environment affecting various business lines [1][2][3]. Financial Performance - In 2024, the company achieved operating revenue of 536 million, a year-on-year decrease of 14.87%, and a net profit of 101 million, down 27.77% [1]. - For Q1 2025, the company reported operating revenue of 105 million, a decrease of 1.6%, but net profit increased by 34.46% to 13 million [1][3]. - The overall gross margin in 2024 decreased by 1.92 percentage points to 52.42%, while the net margin fell by 4.17 percentage points to 22.55% [2]. Business Segment Analysis - Revenue from various business lines declined due to external environmental factors, with the water park segment experiencing the most significant drop of 41.28% [2]. - The revenue changes for 2024 by business line were as follows: scenic area business down 13.03%, water world down 41.28%, hot spring business down 10.4%, hotel business down 23.1%, and travel agency business down 4.54% [2]. Profitability and Cost Management - In Q1 2025, the gross margin improved by 3.27 percentage points to 41.44%, while the expense ratio increased by 1.49 percentage points to 21.24% [3]. - The company’s strategic focus includes seeking quality acquisition opportunities and upgrading existing projects, such as the Yushui Hot Spring and Longxing Island projects [3]. Strategic Outlook - The company is positioned as a leading player in the scenic area sector, with plans for future growth through new projects and geographical expansion [4]. - Projected net profits for 2025-2027 are estimated at 126 million, 144 million, and 161 million, with corresponding price-to-earnings ratios of 26X, 23X, and 20X [4].