Core Viewpoint - The Chinese cultural tourism market is undergoing significant changes in investment logic, operational thinking, and consumer concepts, prompting companies to adopt a "cultural IP + tourism + technology" model [1][3]. Industry Trends - The current state of the cultural tourism market is characterized by a dichotomy, with rising tourist numbers and spending during holidays, while travel agencies face low profits and high vacancy rates in boutique hotels [3]. - The industry is shifting from a "heavy investment" model to a more sustainable approach that focuses on unique IP attributes and self-sustaining traffic [3][4]. Key Changes Identified - Investment logic is transitioning from "spending heavily on scenery" to "industry integration," with 12 major mergers in the first half of the year totaling over 30 billion, which is 2.4 times that of 2024 [4]. - Operational thinking is moving from "grand narratives" to "lean management," with tourist demands evolving from merely "viewing scenery" to "experiencing scenes" [4]. - Consumer concepts are shifting from "cost-performance ratio" to "value of experience," as exemplified by the success of the Qi Yun Mountain treehouse experience during peak holiday seasons [4]. Company Strategy - The company is transitioning from a "resource-driven" model to a "cultural tourism service provider" strategy, focusing on product innovation and emotional connections with local cultural IP [4]. - The company has successfully managed 10 scenic spots this year, emphasizing a light asset model that relies on professional value [4]. - The company is enhancing technological capabilities, launching the "Xiangyuan Travel" app, and becoming the only company in the country to offer electric vertical takeoff and landing aircraft tours, providing a unique perspective on geological wonders [4]. Future Outlook - The company views investment in cultural tourism as an investment in the future, emphasizing the importance of AI in reshaping consumer experiences and advocating for a shift from competitive to cooperative strategies within the industry [5]. - The company encourages the establishment of experience alliances among scenic spots, complementary advantages among enterprises, and collaborative partnerships between government and businesses to foster a healthy and sustainable cultural tourism ecosystem [5].

Summary of the Conference Call Records Industry Overview - The social services sector in the first half of 2025 showed uneven recovery, reaching only 79% of 2019 levels. Key areas of growth included K12 training, human resources, and scenic spots, while the travel chain and higher vocational education faced challenges [1][2][26]. Key Points and Arguments K12 Training - K12 training maintained high industry prosperity due to clear policy definitions, contributing positively to the sector's performance [2][3]. Human Resources - The human resources sector experienced significant growth driven by outsourcing and headhunting services, with a reported revenue increase of approximately 30% [3][17]. Scenic Spots - Scenic areas saw both revenue and profit growth, with companies like Xiangyuan Cultural Tourism and Jiuhua Tourism leading the way through asset injections [4][10]. OTA (Online Travel Agency) - The OTA sector, particularly Ctrip, benefited from travel demand, achieving net profit above expectations due to precise overseas spending and strong domestic accommodation and transportation bookings [5][12][26]. Hotel Industry - The hotel sector is nearing a turning point, with average RevPAR down by 4%-5%. However, leading companies like Huazhu and Atour managed to achieve profit growth through operational excellence [5][13][26]. Restaurant and Beverage Sector - The restaurant and beverage industry showed structural highlights despite facing pressures, such as the June alcohol ban. Notable performers included Xiaocaiyuan and Green Tea, with profit growth rates of 35%-36% and 40%, respectively [6][21][23]. Future Outlook - Strong operational companies are expected to outperform in the second half of the year and into 2026. The hotel industry is anticipated to see a supply curve slowdown, indicating a potential turning point. Flight booking data for the upcoming National Day shows a year-on-year increase of 5.7%, suggesting a continued recovery in travel demand [7][8][26]. Xiangyuan Cultural Tourism - Xiangyuan Cultural Tourism is expected to further develop through asset injections and is actively building an online platform to create private traffic [9]. Jiuhua Tourism - Jiuhua Tourism reported a robust performance with a 20% increase in visitor numbers, benefiting from favorable timing and improved transportation access [10]. Challenges and Opportunities in Scenic Areas - Scenic areas face challenges such as increased customer acquisition pressure and rising sales costs. However, those with unique resources, like Jiuhua Mountain and Changbai Mountain, are expected to attract visitors and improve profitability [11]. Investment Recommendations - Investment opportunities are recommended in the OTA sector, particularly Ctrip, and in the hotel sector, with a focus on companies like Shoulv and Huazhu. The restaurant sector also presents potential with companies like Xiaocaiyuan and Green Tea [26][27][29]. Other Important Insights - The duty-free industry is currently in an adjustment phase, with a 9% decline in sales but a 20% increase in average transaction value. The focus is on identifying the turning point in this sector [14][15]. - The professional services industry is embracing AI technology to enhance efficiency and reduce costs, with notable advancements in recruitment and event management [16]. - The education sector is seeing varied performance, with companies like China Oriental Education showing resilience and growth potential through strategic adjustments [18][19][28]. This summary encapsulates the key insights and developments within the social services sector and its sub-industries, highlighting both challenges and opportunities for investors.