Core Viewpoint - The popularity of the drama "The Lychee of Chang'an" has temporarily boosted tourism in Xi'an and the stock price of Qujiang Cultural Tourism Co., Ltd, but the company continues to face significant financial losses over the past three years, indicating that the "Lychee boom" may not be a sustainable solution to its financial troubles [2][3][4]. Financial Performance - In 2024, Qujiang Cultural Tourism reported an annual revenue of 1.253 billion yuan, a year-on-year decrease of 16.68%, with a net profit attributable to shareholders of -131 million yuan, which is a 32.79% improvement from the -195 million yuan loss in 2023 [3]. - The company expects a net loss of 13 million to 16.9 million yuan for the first half of 2025, a significant reduction of 90.96% to 93.05% compared to the 187 million yuan loss in the same period last year [4]. - The reduction in losses is primarily attributed to non-recurring gains, while the core business continues to face challenges [4]. Business Model and Challenges - Qujiang Cultural Tourism operates as a light-asset operator, relying on government payments for scenic area management rather than ticket revenue, leading to a decline in income from core business operations [3]. - Three out of four major subsidiaries that significantly impact net profit reported losses, indicating underlying financial vulnerabilities [3]. Market Response and IP Strategy - The drama's release led to a surge in tourism, with daily visitors to the 大唐不夜城 increasing by 600%, and overall tourism search volume in Xi'an rising by 320% [7]. - The company has initiated an IP strategy to monetize its assets, including the registration of 13 core scenic area trademarks and collaborations with brands for product development [8]. - Despite the initial success of the drama, the long-term sustainability of revenue generation from such IPs remains uncertain, as the company struggles with high operational costs and low profitability [6][10]. Cultural Impact and Future Outlook - The integration of cultural and tourism experiences is seen as a way to enhance consumer engagement, but the company must focus on extending its revenue streams beyond reliance on fleeting trends [9][10]. - Experts suggest that the company needs to strengthen its IP management and avoid over-reliance on short-term popularity to ensure long-term financial health [10].

Core Viewpoint - The recent success of the drama "The Lychee of Chang'an" has significantly boosted tourism in Xi'an and increased the popularity of the cultural tourism company Qujiang Cultural Tourism, despite its ongoing financial losses over the years [1][4][26]. Group 1: Impact of "The Lychee of Chang'an" - The drama has become a phenomenon, achieving over 10 billion views on Tencent Video within the first week and a total of 5.8 billion views, with a Douban rating of 8.9 [1][2]. - The show has led to a surge in the search volume for "Guangdong Lychee," which increased by 143% month-on-month, and sales of lychee on platforms like JD.com rose over 560% year-on-year [2]. - Qujiang Cultural Tourism's stock price surged, with a market capitalization exceeding 3 billion yuan after the show's release, indicating the significant brand premium and customer traffic generated by the IP [2][4]. Group 2: Qujiang Cultural Tourism's Financial Struggles - Despite having numerous popular IPs, Qujiang Cultural Tourism has reported continuous losses for three years, with total losses amounting to 575 million yuan [5][6]. - The company's revenue from scenic area operations has been declining, with the proportion of income from this segment dropping from 70.4% in 2020 to 52% in 2024 [6][9]. - The company has faced challenges in generating sustainable profits, with many subsidiaries reporting losses, and its main income relies heavily on management fees from government or related parties rather than ticket sales [6][7][11]. Group 3: Revenue Generation Strategies - Following the show's success, Qujiang Cultural Tourism quickly launched three monetization products, including themed dining experiences, digital rights packages, and themed accommodations, which saw significant increases in customer engagement and revenue [3][5]. - The company has also engaged in innovative marketing strategies, such as creating immersive tourist routes linked to the drama, which have attracted a large number of visitors to key attractions [2][3]. Group 4: Comparison with Other Companies - Other tourism companies in Xi'an, such as Xi'an Tourism and Xi'an Dining, are also facing financial difficulties, with combined losses of 519 million yuan in 2024, while the newly listed Shaanxi Tourism reported a profit of 503 million yuan [20][21]. - Shaanxi Tourism has successfully leveraged provincial resources and a flexible market approach, contrasting with Qujiang Cultural Tourism's reliance on government resources and management fees [21][24]. Group 5: Future Challenges and Opportunities - The key challenge for Qujiang Cultural Tourism lies in converting its IP popularity into sustainable revenue, emphasizing the need for deeper consumer engagement and improved monetization strategies [26]. - The company must focus on enhancing secondary consumption rates and developing a sustainable business model to avoid the pitfalls of merely accumulating IP without profitability [26].