Core Viewpoint - The tourism market is shifting from traditional scenic spots to lesser-known destinations, driven by changing consumer preferences and dissatisfaction with the commercialization of popular attractions [8][9][26]. Group 1: Changes in Tourism Preferences - The popularity of destinations like Xinjiang has surged, but the influx of tourists has led to overcrowding and logistical issues, prompting some travelers to seek out less commercialized locations [6][8]. - Data indicates a 200% increase in interest for "less crowded" travel options, with small towns becoming popular destinations, while the brand index of the top 100 5A scenic spots has halved over the past four years [9][11]. Group 2: Issues with 5A Scenic Spots - Visitors often face excessive fees at 5A scenic spots, where additional charges for activities and amenities can lead to a total cost significantly higher than the initial ticket price [12][15]. - The traditional model of tourism, where visitors follow a fixed itinerary, is being challenged as tourists seek more authentic experiences and value for money [15][18]. Group 3: Competition from Alternative Destinations - The rise of lesser-known destinations is attributed to their unique offerings and the perception that they provide better value compared to overcrowded 5A scenic spots [27][29]. - The search volume for "hidden gem" locations has increased by 300%, while visitor growth at major attractions has stagnated, indicating a shift in consumer behavior [29][30]. Group 4: Quality and Experience Concerns - Many 5A scenic spots are criticized for their lack of originality and increasing commercialization, leading to a decline in visitor satisfaction and a negative reputation [26][35]. - The experience at these attractions is often marred by overcrowding and a focus on profit over quality, resulting in a loss of appeal to younger travelers who prefer more personalized and unique experiences [26][35].

Group 1 - The company Emei Mountain A held its 149th board meeting on September 15, 2025, via telecommunication to review the proposal for amending the rules of the general manager's office meeting [1] - For the first half of 2025, the revenue composition of Emei Mountain A was as follows: 40.48% from cable car services, 26.78% from mountain entrance tickets, 18.1% from hotel services, 6.42% from other sources, and 6.0% from tea industry [1] - As of the report date, the market capitalization of Emei Mountain A was 7.8 billion yuan [1]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, primarily due to a decrease in visitor numbers, but managed to improve profitability in the second quarter through cost reduction and efficiency enhancement [1][2]. Group 1: Financial Performance - Total revenue for H1 2025 was 457 million yuan, a decrease of 10% year-on-year, while net profit attributable to shareholders was 121 million yuan, down 8% [1]. - In Q2 2025, total revenue was 231 million yuan, a decrease of 9% year-on-year, but net profit increased by 7% to 62 million yuan [1]. - The company's gross margin for H1 2025 decreased by 2 percentage points to 48.07%, while Q2 gross margin improved by 1 percentage point to 49.20% [2]. Group 2: Operational Adjustments - The company experienced a decline in revenue from key segments: mountain tickets, cable car services, and hotel services decreased by 10%, 8%, and 12% respectively [3]. - The company has suspended the loss-making performance project "Only Emei Mountain" to improve profitability [3]. - The completion of the Golden Summit cable car expansion is expected by the end of 2025, which will enhance the tourist capacity of the scenic area [3]. Group 3: Future Outlook - The company is actively pursuing scenic area adjustments and has seen improved profitability in Q2 2025 [4]. - With traffic optimization and the completion of the cable car renovation, the tourist capacity is expected to gradually expand [4]. - The company is also focusing on developing new projects in tea and travel services, which may contribute to future revenue growth [4].

Investment Rating - The report assigns a "Buy" investment rating for the company, marking its first coverage [7]. Core Insights - The company experienced a decline in revenue due to a drop in visitor traffic, but has implemented business optimizations that have led to improved profitability [5][6]. - The company reported a total revenue of 457 million yuan for H1 2025, a decrease of 10% year-on-year, with a net profit of 121 million yuan, also down by 8% [4]. - The company is actively adjusting its operations, including the suspension of a loss-making performance project, which has contributed to a slight increase in gross margin [5][6]. Summary by Sections Financial Performance - In H1 2025, the company's gross margin decreased by 2 percentage points to 48.07%, while in Q2 2025, it increased by 1 percentage point to 49.20% [5]. - The company’s sales expense ratio remained stable, while the management expense ratio increased by 1 percentage point to 14.92% [5]. Business Adjustments - Revenue from core business segments such as mountain tickets, cable cars, and hotel services decreased by 10%, 8%, and 12% respectively, primarily due to reduced visitor traffic [6]. - The company has halted the performance project "Only Emei Mountain" to mitigate losses, and the upgrade of the Golden Summit cable car is expected to be completed by the end of 2025, enhancing visitor capacity [6]. Earnings Forecast - The company is expected to see gradual improvement in performance due to ongoing adjustments and the anticipated completion of infrastructure projects [7]. - EPS forecasts for 2025-2027 are projected at 0.50, 0.56, and 0.61 yuan respectively, with corresponding PE ratios of 27, 25, and 23 times [7].

Core Viewpoint - The performance of Emei Mountain A has significantly declined in various financial metrics, with core business areas facing challenges due to decreased visitor numbers and unsuccessful new business ventures [1][4]. Financial Performance - For the first half of 2025, Emei Mountain A reported operating revenue of 457 million yuan, a year-on-year decrease of 10.07% [1]. - The net profit attributable to the parent company was 121 million yuan, down 8.48% year-on-year [1]. - The return on equity was 4.53%, a decline of 0.73 percentage points compared to the previous year [1]. Core Business Analysis - The main revenue drivers for Emei Mountain A are ticket sales and cable car services, which together account for nearly 70% of total revenue [2]. - Visitor numbers to the Emei Mountain scenic area reached 2.0952 million, a decrease of 6.5% year-on-year, directly impacting ticket and cable car revenue [2]. - Revenue from ticket sales was 122 million yuan, down 9.53% year-on-year, while cable car revenue was 185 million yuan, a decline of 7.51% [2]. - Despite maintaining a high gross margin of 79.45% for the cable car business, this figure decreased by 3.58% compared to the previous year [2]. New Business Ventures - The new business initiative "Only Emei Mountain" has not only failed to generate profit but has also increased the company's financial burden [4]. - Revenue from the hotel business was 82.73 million yuan, down 12.13% year-on-year, while other businesses, including tea, smart tourism, and performances, generated 66.94 million yuan, a decline of 15% [4]. - The "Only Emei Mountain" cultural performance project reported revenue of only 5.40 million yuan, with the operating entity incurring a loss of 16.14 million yuan [4][5]. - The company has borrowed 536 million yuan for the project, with an outstanding balance of 493 million yuan as of June 30, 2025 [5].

Core Viewpoint - Emei Mountain Tourism Co., Ltd. reported a decline in revenue and net profit for the first half of 2025, indicating challenges in the tourism sector and the impact of decreased visitor numbers on core business operations [2][3]. Financial Performance - The company's revenue for the first half of 2025 was approximately 457 million yuan, a year-on-year decrease of 10.07%, equating to a reduction of about 51.16 million yuan [2]. - The net profit attributable to shareholders was around 121 million yuan, down 8.48% year-on-year [2]. - The net profit after deducting non-recurring items was approximately 119 million yuan, reflecting a decrease of 9.65% [2]. Visitor Statistics - As of June 30, 2025, the Emei Mountain scenic area received 2.0952 million visitors, a decline of 6.5%, which translates to a loss of approximately 145,900 visitors [2]. Core Business Revenue Breakdown - Revenue from mountain ticket sales was about 122 million yuan, down 9.53% year-on-year [2]. - Revenue from the cable car business was approximately 185 million yuan, a decrease of 7.51% [2]. - Revenue from hotel services was around 82.73 million yuan, reflecting a decline of 12.13% [2]. Other Business Segments - Revenue from tea, smart tourism, and performance-related businesses totaled approximately 66.94 million yuan, down 15% year-on-year [3]. - The performance project "Only Emei Mountain" was suspended on June 15, 2025, with the associated company reporting a revenue of 8.47 million yuan and a net loss of 16.14 million yuan [3]. Project Performance - The "Only Emei Mountain" project has consistently reported losses since its inception, with net profits from 2020 to 2024 being -60.58 million yuan, -74.62 million yuan, -95.39 million yuan, -228 million yuan, and -124 million yuan respectively [3][4]. Industry Outlook - The domestic tourism industry showed steady growth in the first half of 2025, with both domestic and inbound tourism increasing [5]. - However, consumers are becoming more rational, favoring cost-effective travel options, leading to a slowdown in per capita spending growth [5]. - The company plans to develop a work plan for the second half of the year to achieve its annual targets and promote high-quality development in tourism [5].

Core Viewpoint - Emei Mountain A (000888.SZ), the first tourism listed company in Southwest China, reported a decline in visitor numbers and revenue in its mid-year report, highlighting challenges in its core business and the underperformance of its new economic growth project, the performance show "Only Emei Mountain" [1][4][16]. Financial Performance - As of June 30, 2025, Emei Mountain A received 2.0952 million visitors, a decrease of 145,900 visitors or 6.5% year-on-year [1]. - The company achieved an operating income of 457 million yuan, down 51.156 million yuan or 10.07% compared to the previous year [1]. - The net profit attributable to the parent company was 121 million yuan, a year-on-year decline of 8.48% [1]. Revenue Breakdown - The main revenue sources for Emei Mountain A include mountain ticket sales, cable car services, and hotel services, contributing approximately 122 million yuan, 185 million yuan, and 83 million yuan respectively, accounting for 26.78%, 40.48%, and 18.10% of total revenue [1]. - All three core business segments experienced declines compared to the same period in 2024, with decreases of 9.53%, 7.51%, and 12.13% respectively [1]. Performance of "Only Emei Mountain" - The performance project "Only Emei Mountain," operated by Emei Mountain Cloud Tourism Investment Co., Ltd. (cloud travel investment), generated revenue of 8.4658 million yuan but incurred a net loss of 16.1383 million yuan [1][4]. - The project was suspended on June 15, 2025, with no tickets currently available for purchase [3][4]. Financial Strain and Debt - The total investment in the "Only Emei Mountain" project was 819 million yuan, with Emei Mountain A holding a 40% stake [6]. - The company took out a loan of 560 million yuan in September 2020, with a repayment deadline of December 5, 2036, and currently owes 493 million yuan [6][7]. - Emei Mountain A has provided financial support of 3.7545 million yuan to cloud travel investment for employee salaries and other expenses [7]. Historical Losses - Cloud travel investment has reported continuous losses since its inception, with cumulative losses exceeding 600 million yuan over six years [9]. - The company recorded asset impairment losses of over 74.2 million yuan in 2024, primarily due to ongoing losses from cloud travel investment [12]. Market Comparison - Unlike other successful performance projects such as "Impression Lijiang," which reported significant revenues and profits, "Only Emei Mountain" has struggled due to misalignment in project positioning and a lack of content updates [13][14]. - The project has been criticized for its high costs and low revenue potential, leading to a challenging financial situation [15].

Core Viewpoint - Emei Mountain A (000888) reported a decline in overall performance for the first half of 2025, with a notable improvement in the second quarter, indicating potential recovery trends despite challenges in the tourism sector [2][10]. Financial Performance Overview - Total revenue for the first half of 2025 was 457 million yuan, a year-on-year decrease of 10.07% - Net profit attributable to shareholders was 121 million yuan, down 8.48% year-on-year - Non-recurring net profit was 119 million yuan, a decline of 9.65% year-on-year - In Q2, net profit reached 62.38 million yuan, an increase of 7.35% year-on-year, with non-recurring net profit at 62 million yuan, up 6.73% [2]. Key Financial Metrics - Gross margin for the first half of 2025 was 48.07%, down 3.09% year-on-year - Net margin was 24.3%, an increase of 6.41% year-on-year, indicating effective cost control despite declining gross margin [3]. Expense Control - Total operating expenses (selling, administrative, and financial expenses) amounted to 81.13 million yuan, accounting for 17.75% of revenue, a decrease of 7.04% year-on-year, reflecting improved expense management [4]. Per Share Indicators - Earnings per share (EPS) was 0.23 yuan, down 8.47% year-on-year - Net asset value per share was 4.95 yuan, an increase of 3.64% year-on-year - Operating cash flow per share was 0.30 yuan, up 2.97% year-on-year, indicating stable asset quality and cash flow [5]. Main Business Analysis - Passenger cableway revenue was 185 million yuan, accounting for 40.48% of total revenue, with a high gross margin of 79.45% - Mountain ticket revenue was 122 million yuan, representing 26.78% of total revenue, with a gross margin of 46.47%, likely impacted by a decrease in visitor numbers - Hotel services revenue was 82.73 million yuan, making up 18.10% of total revenue, but with a low gross margin of 5.37%, suggesting a need for operational optimization [6][7][8]. Financial Condition and Cash Flow - Cash and cash equivalents stood at 1.651 billion yuan, a year-on-year increase of 20.27% - Accounts receivable was 50.54 million yuan, down 16.04% year-on-year, indicating improved receivables management - Interest-bearing debt was 501 million yuan, a slight decrease of 0.52% year-on-year, reflecting stable overall debt levels [9]. Development Prospects and Challenges - As a well-known tourism operator in China, Emei Mountain A possesses rich tourism resources and a complete industry chain - However, the company faces challenges from declining visitor numbers and increasing market competition, necessitating enhancements in service quality and business structure optimization - Continued focus on cost control and operational efficiency is essential for ensuring long-term stable profit growth [10].

Company Overview - Emei Mountain Tourism Co., Ltd. (Emei Mountain A) reported a revenue of 457 million yuan in the first half of 2025, a year-on-year decrease of 10.07%, and a net profit attributable to shareholders of 121 million yuan, down 8.48% year-on-year [1] - The company is a leading tourism enterprise in Sichuan Province, leveraging its status as a UNESCO World Heritage site and a national 5A-level tourist attraction [1] - The main business includes mountain ticket sales, cable car services, hotel accommodations, and other related tourism services [1] Visitor Statistics - In the first half of 2025, Emei Mountain scenic area received 2.0952 million visitors, a decline of 6.5% year-on-year [1] - The revenue from ticket sales was 122 million yuan, down 9.53% year-on-year; cable car services generated 185 million yuan, a decrease of 7.51%; and hotel services brought in 82.7253 million yuan, down 12.13% [1] Industry Trends - The domestic tourism industry showed steady growth in the first half of 2025, with both domestic and inbound tourism increasing [2] - There is a notable shift towards more rational consumer behavior, with a preference for cost-effective travel options and a trend towards slow-paced, in-depth travel experiences [2] - The Z generation and senior citizens are becoming the main consumer groups, with an increasing focus on the emotional value of travel experiences [2] Strategic Initiatives - Emei Mountain A plans to adapt to industry changes by upgrading traditional sectors such as ticketing, cable cars, hotels, and tea, while also developing emerging industries like performance arts, big data, educational tourism, and cultural creativity [3] - The company aims to explore diverse marketing strategies targeting different customer segments, including families, young people, and deep travelers, enhancing service quality and product diversity [3] - To boost off-season visitor numbers, Emei Mountain A will host events like the Ice and Hot Spring Festival and implement promotional strategies such as offering consumption vouchers [3]

Group 1 - The company Emei Mountain A held its 148th board meeting on August 5, 2025, to review the semi-annual report and its summary [1] - For the year 2024, the revenue composition of Emei Mountain A is as follows: 40.49% from passenger cableway, 27.35% from mountain ticket sales, 17.8% from hotel services, 7.38% from tea industry, and 5.21% from other sources [1] - As of the report date, the market capitalization of Emei Mountain A is 7.4 billion [1]