Group 1: Business Overview - The core enterprise of the company's business travel operations is Guangzhou Guangzhi Travel International Travel Agency Co., Ltd. (hereinafter referred to as "Guangzhi Travel"), a leading player in the domestic travel agency industry, focusing on domestic, outbound, and inbound tourism, as well as various travel-related services [2] - Guangzhi Travel has established a nationwide strategic layout with operational centers across multiple regions, enhancing its service, product supply, and sales channels [2] Group 2: Online Sales Strategy - Guangzhi Travel has developed and operates the "Yiqixing" and "Xingzhao Net" smart tourism platforms, integrating various online sales channels including its official website, mini-programs, and social media platforms to create a comprehensive online and offline sales system [3] Group 3: Accommodation Business - The accommodation segment includes hotel management and operation, focusing on brand development, asset-light strategies, and capital operation capabilities [4] - Guangzhou Lingnan International Hotel Management Co., Ltd. (hereinafter referred to as "Lingnan Hotel") is the core enterprise, ranked 14th in the "Top 60 Hotel Groups in China" and 23rd in the global hotel group rankings by number of hotels [4][6] Group 4: Brand and Service Expansion - Lingnan Hotel aims to integrate Chinese culture with international management practices, offering a diverse range of hotel brands and services, including flagship hotels that are among the first five-star hotels in China [5][6] Group 5: Tourism Industry Chain - The company’s tourism-related businesses encompass dining, scenic spots, event services, transportation, and technology [7] - Dining: Focus on promoting Lingnan culture through innovative cuisine and banquet standards [7] - Scenic Spots: Management of key attractions like Baiyun Mountain, enhancing tourism offerings [7] - Event Services: Successful operation of major tourism expos and cultural festivals [8] - Transportation: Operates a fleet of vehicles for passenger transport and has partnerships with over 120 airlines for ticket sales [8] - Technology: Committed to digital transformation and innovation in the tourism sector [8]

Core Viewpoint - Lingnan Holdings is a comprehensive tourism company with a complete tourism industry chain, focusing on business travel, accommodation, and other related services [1] Company Overview - Lingnan Holdings operates as a large tourism industry integration platform, brand innovation development platform, and investment management capital platform [1] - The company is primarily engaged in business travel (travel agency), accommodation (hotel), and other tourism-related businesses, forming a complete tourism industry chain [1] - The current controlling shareholder is Guangzhou Lingnan Business Travel Investment Group Co., Ltd., holding 45.12% of shares as of H1 2025, with the actual controller being the Guangzhou State-owned Assets Supervision and Administration Commission [1] Business Performance - The travel agency platform, Guangzhilv, has approximately 200 stores nationwide, with 119 located in Guangdong Province, expanding its physical business scale [1] - The hotel business has added 69 new projects/rooms, totaling nearly 4,000 rooms, with revenue growth of 18.49% compared to the same period in 2019 [1] Industry Trends - The tourism market continues to show vitality, with domestic travel demand increasing; inbound tourism is recovering steadily [2] - In 2024, domestic residents are expected to travel 5.62 billion times, a year-on-year increase of 14.8% [2] - Inbound tourists are projected to reach 13.19 million, a 60.8% increase year-on-year, with inbound travel recovering to 91% of 2019 levels [2] - Outbound travel is recovering at a slower pace, expected to reach 79% of 2019 levels due to international flight and visa constraints [2] Business Strategy - Guangzhilv has completed a national layout, with over 70% of the company's revenue coming from travel agency operations [3] - The hotel business is advancing a "North-South collaboration" national layout strategy, with major revenue contributions from Guangzhou Garden Hotel and China Hotel [3] - The company is diversifying its tourism industry chain, expanding into cultural tourism, technology, scenic area operations, and duty-free businesses [3] Financial Forecast - Revenue projections for 2025-2027 are 4.967 billion, 5.602 billion, and 6.277 billion yuan, with year-on-year growth rates of 15.26%, 12.80%, and 12.03% respectively [4] - Expected net profit for the same period is 135 million, 182 million, and 235 million yuan, with growth rates of -10.22%, 35.04%, and 28.90% respectively [4] - The current stock price corresponds to a PE ratio of 65.18, 48.27, and 37.45 for the years 2025, 2026, and 2027 [4] - The company is compared with peers in the travel agency and hotel sectors, with a projected PE of 49.23 for comparable companies in 2026 [4]

Group 1: Financial Performance - In the first half of 2025, the company achieved a revenue of CNY 208,960.24 million, an increase of 8.52% compared to the same period last year [2] - The net profit attributable to shareholders reached CNY 4,952.64 million, reflecting a growth of 24.39% year-on-year [2] - The net asset attributable to shareholders at the end of the period was CNY 226,085.81 million, remaining stable compared to the previous year [2] - The net cash flow from operating activities was CNY 12,477.96 million, with a debt-to-asset ratio of 39.03% and a weighted average return on equity of 2.16% [2] Group 2: Travel Business Performance - The travel business, led by Guangzhou Guangzhi Travel International Co., Ltd., generated a revenue of CNY 153,571.45 million in the first half of 2025, up 11.78% year-on-year [3] - Revenue from outbound tourism (excluding Hong Kong and Macau) was CNY 84,881.39 million, while domestic tourism revenue was CNY 49,819.73 million [3] - The net profit for the travel business was CNY 2,329.30 million, a year-on-year increase of 34.91% [3] Group 3: Hotel Business Performance - The hotel management segment achieved a revenue of CNY 11,855.54 million in the first half of 2025, a growth of 1.60% compared to the previous year [5] - The net profit from hotel operations was CNY 973.47 million, reflecting a year-on-year increase of 23.26% [5] - The overall revenue for the hotel business has grown by 18.49% compared to the same period in 2019 [5] Group 4: Strategic Expansion - The travel business expanded its national service network, adding 12 new stores in the first half of 2025, totaling approximately 200 stores nationwide [6] - The hotel business established a northern headquarters and signed 69 new projects, adding nearly 4,000 rooms [7] - The company is actively pursuing a "North-South Coordination" strategy to enhance its national layout [7] Group 5: Silver Economy Initiatives - The travel business has launched the "Leisure and Happiness" club targeting the elderly market, focusing on developing tailored travel products [8] - New upgraded travel products for seniors include "Travel and Residence 2.0" and various themed travel routes [9] Group 6: Online Business Development - The company has developed the "Easy Travel" and "Walking Network" smart tourism platforms, integrating various online sales channels [10] - The official website has launched the "Easy Purchase" local life channel, enhancing the online shopping experience [10]

Financial Performance - In the first half of 2025, the company achieved operating revenue of CNY 2,089.60 million, an increase of 8.52% year-on-year [2] - The net profit attributable to shareholders was CNY 49.53 million, up 24.39% compared to the same period last year [2] - The net asset attributable to shareholders at the end of the period was CNY 2,260.86 million, remaining stable year-on-year [2] - The net cash flow from operating activities was CNY 124.78 million, with a debt-to-asset ratio of 39.03% and a weighted average return on equity of 2.16% [2] Travel and Tourism Business - The core enterprise for travel services is Guangzhou Guangzhilv International Travel Agency, which achieved operating revenue of CNY 1,535.71 million in the first half of 2025, a year-on-year increase of 11.78% [3] - Outbound tourism (excluding Hong Kong and Macau) generated revenue of CNY 848.81 million, while domestic tourism revenue was CNY 498.20 million [3] - The net profit for the travel business was CNY 23.29 million, reflecting a growth of 34.91% year-on-year [3] Hotel Business - The hotel business reported revenue of CNY 118.56 million in the first half of 2025, a 1.60% increase year-on-year [4] - The net profit from hotel operations was CNY 9.73 million, up 23.26% compared to the previous year [4] - The accommodation sector's revenue grew by 18.49% compared to the same period in 2019 [4] New Retail and Cultural Products - The company developed 87 cultural products in the first half of 2025, with 16 selected as part of the first batch of "Guangzhou Gifts" [6] - The new retail initiatives generated nearly CNY 0.70 million in revenue, with significant growth in seasonal food sales [6] Duty-Free Business - The company, in collaboration with China Duty Free Group and others, established a duty-free company with a registered capital of CNY 45 million, holding a 19.50% stake [8] - The first city duty-free store opened on August 26, 2025, marking a significant step in implementing national duty-free policies [8] - Future plans include leveraging travel agency and hotel resources to enhance duty-free shopping experiences for travelers [9]