Core Viewpoint - Qujiang Cultural Tourism (600706) is facing severe operational challenges, with continuous net profit losses for three consecutive years, and a projected loss of 131 million yuan in 2024 [1][3]. Financial Performance - The company reported a net profit loss of 248 million yuan in 2022, 195.4 million yuan in 2023, and a projected loss of 131.3 million yuan in 2024, indicating a narrowing loss but no substantial improvement in operational conditions [1][3]. - Revenue for 2024 is expected to decline by 16.7% to 1.25 billion yuan, with core scenic area management revenue dropping significantly by 32.6% to 970 million yuan, and gross margin decreasing by 13.57 percentage points to 23.73% [1][3]. Revenue Decline - The sharp decline in core scenic area revenue is the main reason for the deterioration in performance, with Qujiang Pool Heritage Park revenue down 53.04% and Big Wild Goose Pagoda revenue down 44.56% [1][3]. - Additionally, revenue from the Tang Paradise decreased by 14.74%, and from 2024, the company will no longer receive management fees from key scenic areas, further impacting its traditional profit model [2][3]. Accounts Receivable Issues - As of the end of 2024, the company has accounts receivable of 920 million yuan from the Qujiang New District Management Committee, accounting for 78% of total accounts receivable, with a cumulative provision for bad debts of 360 million yuan, representing a 31% provision rate [4]. - Although the government has promised to repay the debts over five years starting in 2025, the actual repayment pressure remains significant, with only 22.85 million yuan expected to be collected [4]. Operational Challenges - The company attributes the revenue decline to reduced management fees and decreased income from certain scenic areas, alongside rising fixed costs such as lighting production and performance fees, as well as increased depreciation and amortization [4]. - Qujiang Cultural Tourism has implemented measures such as state-owned enterprise reform, optimizing operational models, and enhancing accounts receivable collection efforts to improve operations [4]. Shareholder and Governance Issues - The controlling shareholder, Qujiang Tourism Investment (Group) Co., Ltd., has had all of its shares frozen and marked for judicial purposes, which raises concerns about governance and decision-making processes within the company [4].