Core Viewpoint - The Tianmu Lake Animal Kingdom project in Liyang, Jiangsu Province, has been terminated due to various challenges, marking a significant setback for Tianmu Lake Tourism Co., Ltd. and highlighting broader issues in the company's investment strategy [3][4]. Group 1: Project Termination - The Liyang Municipal Committee has decided to terminate the Animal Kingdom project and conduct a comprehensive investigation into related matters [3]. - Tianmu Lake confirmed the termination of its investment in the Animal Kingdom project and announced plans to hold a shareholder meeting to vote on related matters [3][4]. Group 2: Financial Performance - In the first half of 2025, Tianmu Lake reported revenues of approximately 246 million, a year-on-year decrease of 6.49%, while net profit attributable to shareholders was about 54.73 million, an increase of 4.12% [6]. - Despite a slight improvement in profitability, the company has paused new project investments and construction plans [6]. Group 3: Investment Challenges - Tianmu Lake raised approximately 300 million through convertible bonds in 2019, but only 27.95 million has been utilized for the planned projects, indicating a utilization rate of less than 10% [6][7]. - The company has redirected idle funds into financial investments due to delays in project execution, particularly for the Nanshan Xiaozhai Phase II project and the Yushui Hot Spring renovation [7]. Group 4: Regulatory and Environmental Issues - The Animal Kingdom project faced regulatory challenges as it was located within a significant protection area, leading to complications in obtaining necessary permits [5]. - The project was also impacted by environmental concerns, which contributed to its suspension [4][5].

Core Viewpoint - The Tianmu Lake Animal Kingdom project in Liyang, Jiangsu Province, has been abruptly halted by local government due to various issues, marking a significant setback for Tianmu Lake Tourism Co., Ltd. [1][3] Group 1: Project Termination - The Liyang Municipal Committee has decided to terminate the implementation of the Animal Kingdom project and conduct a comprehensive investigation into related matters [3]. - Tianmu Lake confirmed the termination of its capital increase to the Animal Kingdom Company and announced a temporary shareholders' meeting to vote on this decision [1][3]. - The project was initially launched with a registered capital of 100 million yuan, with Tianmu Lake holding a 19.98% stake [3][4]. Group 2: Financial Performance - In the first half of 2025, Tianmu Lake reported approximately 246 million yuan in revenue, a year-on-year decrease of 6.49%, while net profit attributable to shareholders was about 54.73 million yuan, an increase of 4.12% [7]. - The company raised 300 million yuan through convertible bonds in 2019, but only 27.95 million yuan of the funds have been utilized for the planned projects, leading to an extension of the investment deadline to December 31, 2027 [8][9]. Group 3: Project Challenges - The Animal Kingdom project faced delays due to funding and environmental pressures, ultimately leading to its suspension [5][6]. - The project is located within a significant protection area, which restricts new constructions that may pollute the environment, complicating its development [6]. - Despite plans to optimize the construction scheme and attract social capital, the project did not resume as anticipated [6].

Core Viewpoint - The company has failed to utilize over 90% of the 300 million RMB raised five and a half years ago for specific projects, with most funds remaining idle in cash management [3][5][6]. Group 1: Fund Utilization - The company raised 300 million RMB through a bond issuance in 2019, with a net amount of 289.7 million RMB available for the "Nanshan Xiaozhai Phase II Project" and "Yushui Hot Spring (Phase I) Renovation Project" [5]. - As of June 30, 2025, only 1.02% of the planned 229.7 million RMB for the Nanshan Xiaozhai Phase II Project has been invested, amounting to 2.3452 million RMB, while 42.68% of the 60 million RMB for the Yushui Hot Spring project has been utilized, totaling 25.6082 million RMB [5][6]. Group 2: Project Delays - The company announced an extension of the investment timeline for both projects from December 31, 2025, to December 31, 2027, due to external factors and market conditions affecting execution [6]. - The company claims that the projects are still being pursued, with ongoing feasibility assessments and design work for the Nanshan Xiaozhai Phase II Project [6]. Group 3: Capital Increase for Animal Kingdom Project - The company planned to increase its investment in Jiangsu Tianmu Lake Animal Kingdom Tourism Co., Ltd. by 17.982 million RMB to support project funding, but this increase has not yet been executed, despite being announced over a year ago [7]. - The Animal Kingdom project has reportedly faced construction halts, with machinery found inactive on-site, raising concerns about the project's progress [7][9]. Group 4: Shareholding and Disclosure Issues - The major shareholder of the Animal Kingdom project has changed, with a new entity holding 77.0052% of the shares, which is not a state-owned enterprise, contradicting the company's claims about following state-owned capital arrangements [8]. - The company has been criticized for not providing complete and accurate disclosures regarding its shareholding in the Animal Kingdom project, particularly in its 2025 semi-annual report [8].

Core Viewpoint - The company has failed to utilize over 90% of the 300 million RMB raised five and a half years ago for specific projects, with most funds still sitting idle in financial management [2][3]. Group 1: Fund Utilization - The company raised 300 million RMB through a convertible bond issuance approved by the China Securities Regulatory Commission, with a net amount of 289.7 million RMB available for the "Nanshan Xiaozhai Phase II Project" and "Yushui Hot Spring (Phase I) Renovation Project" [3]. - As of June 30, 2025, only 234.52 thousand RMB (1.02%) has been invested in the Nanshan Xiaozhai Phase II Project, while 25.6 million RMB (42.68%) has been invested in the Yushui Hot Spring (Phase I) Renovation Project [3]. Group 2: Project Delays - The company announced an extension of the investment timeline for both projects from December 31, 2025, to December 31, 2027, due to external factors and market conditions affecting project execution [4]. - The company is actively optimizing the Nanshan Xiaozhai Phase II Project and has partially commenced the renovation of the Yushui Hot Spring, but the progress has been slower than planned [4]. Group 3: Capital Increase for Animal Kingdom Project - The company planned to increase its investment in Jiangsu Tianmuhu Animal Kingdom Tourism Co., Ltd. by 17.982 million RMB to support project funding, but this increase has not yet been executed, and rumors of project suspension have emerged [5]. - The Animal Kingdom project, with a total investment of 3.55 billion RMB, has reportedly halted construction, with machinery on-site inactive [5]. Group 4: Shareholding Changes - The major shareholder of the Animal Kingdom project has changed, with the new largest shareholder being a cooperative rather than a state-owned entity, which raises questions about the company's previous claims regarding its shareholding percentage [6]. - The company has not disclosed its exact shareholding percentage in the Animal Kingdom project in its latest reports, which may violate information disclosure requirements [6]. Group 5: Environmental Concerns - Some reports suggest that the suspension of the Animal Kingdom project may be related to planning and environmental issues, particularly due to its location within a natural ecological protection area [7].

Core Viewpoint - The company has decided to extend the implementation period for its fundraising investment projects due to external factors and market conditions affecting the original timeline for project completion [1][2][6]. Fundraising Basic Information - The company issued 3,000,000 convertible bonds at a face value of RMB 100 each, raising a total of RMB 300 million, which was fully received by March 5, 2020 [1]. - The funds are allocated for projects including the "Yushui Hot Spring (Phase I) Renovation Project" [1]. Progress of Fundraising Investment Projects - As of June 30, 2025, the cumulative investment in the Yushui Hot Spring (Phase I) Renovation Project is RMB 27.95 million, with no percentage of completion reported [1]. - The current balance of the fundraising funds in various bank accounts totals approximately RMB 56.11 million [1]. Reasons for Extension of Project Implementation Period - The company aims to enhance customer experience and expand its product offerings, leading to a strategic decision to slow down the construction of the Nanshan Xiaozhai Phase II project due to challenges in the tourism industry [2][3]. - The Yushui Hot Spring (Phase I) Renovation Project has been partially initiated, but the company has decided to delay further renovations to avoid impacting current operations [3]. Measures to Ensure Timely Completion Post-Extension - The company plans to optimize project schedules, allocate resources effectively, and enhance supervision and management of the fundraising projects to ensure compliance and timely completion [4]. Re-evaluation of Fundraising Investment Projects - The Nanshan Xiaozhai Phase II project is designed to enhance the tourism offerings in the region, including a cultural square and themed hotel, which aligns with the company's strategic development plans [4][5]. Impact of Extension on Fundraising Investment Projects - The extension of the project implementation period is a prudent decision based on the current progress and does not constitute a substantive change in the project’s nature or direction [6]. Internal Decision-Making Process - The company's board of directors has approved the proposal to extend the implementation period for the fundraising investment projects [6]. Sponsor Institution's Review Opinion - The sponsor institution, CITIC Construction Investment Securities, has conducted a thorough review and found no objections to the company's decision to extend the project implementation period, confirming that it does not adversely affect shareholder interests [6].