Xiyu Tourism 2025 Annual Report Analysis: Revenue Up 7.32%, Net Profit Down 13.68%, Financial Expenses Surge 380.72%

Operating Revenue Analysis

In 2025, Xiyu Tourism achieved operating revenue of 325,947,468.93 yuan, a 7.32% increase from 2024’s 303,712,158.87 yuan. Looking at product categories, travel agency revenue surged by 104.86% year-over-year. Immersive performances generated 13,970,374.26 yuan, becoming a new growth point; traditional tourism transportation and cable car transportation saw slight increases of 1.52% and 1.44%, respectively. However, hot spring hotel revenue declined by 22.11% year-over-year, and boat cruise revenue decreased slightly by 2.61%.

The overall revenue growth is mainly driven by the expansion of emerging businesses. However, some traditional core segments have declined, which warrants attention. Future focus should be on the sustainable profitability of new businesses and the recovery of traditional ones.

Net Profit and Non-Recurring Profit Analysis

In 2025, net profit attributable to shareholders of the listed company was 74,681,464.68 yuan, down 13.68% from 86,513,122.41 yuan in 2024. Non-recurring net profit was 74,793,144.97 yuan, a 12.72% decrease from 85,694,383.09 yuan in 2024. The decline in net profit exceeds revenue growth, mainly due to a significant 27.23% increase in operating costs, including a 78.21% rise in depreciation and amortization expenses related to tourism, which directly squeezed profit margins.

In terms of non-operating gains and losses, the net amount in 2025 was -111,680.29 yuan, having minimal impact on net profit. The trend of non-recurring profit aligns with net profit, indicating a genuine decline in core business profitability.

Earnings Per Share (EPS) Analysis

In 2025, basic EPS was 0.48 yuan/share, down 14.29% from 0.56 yuan/share in 2024. Non-recurring EPS also decreased by 14.29%. The decline in EPS is directly related to the decrease in net profit, with no change in share capital, so lower net profit results in reduced EPS.

Cost Analysis

Selling Expenses

In 2025, selling expenses totaled 5,673,195.92 yuan, up 54.99% from 3,660,426.89 yuan in 2024. This increase is mainly due to intensified marketing efforts during the off-season to promote tourism, reflecting proactive market expansion. Future focus should be on the conversion effectiveness of marketing investments to sustain customer flow and revenue growth.

Management Expenses

Management expenses in 2025 were 61,595,927.57 yuan, a slight increase of 0.62% from 61,214,394.03 yuan in 2024, indicating effective cost control in management.

Financial Expenses

Financial expenses surged by 380.72% to 3,407,754.62 yuan in 2025 from 708,881.74 yuan in 2024, mainly due to interest costs from loans related to the Kashgar and Meet Sai Lake projects. The significant increase in financial costs has notably compressed profits. Going forward, attention should be paid to whether project profitability can cover interest expenses and how debt levels evolve.

Research and Development (R&D) Expenses

During the reporting period, the company had no R&D investment, with R&D expenses at zero. This indicates insufficient investment in technological R&D and product innovation, potentially facing risks of product homogenization and declining competitiveness.

R&D Personnel

The company did not disclose R&D personnel information during the period. Given the lack of R&D investment, the R&D team may be minimal or non-existent. In the context of digital transformation and product innovation in the cultural tourism industry, the absence of R&D resources could become a long-term weakness.

Cash Flow Analysis

Net Cash from Operating Activities

In 2025, net cash flow from operating activities was 132,042,013.25 yuan, up 13.89% from 115,937,216.93 yuan in 2024. Cash inflows from operations increased by 8.62%, mainly due to revenue growth leading to higher cash received from sales and services. Cash outflows increased by 5.79%, mainly from higher payments to employees and related expenses. Overall, the company’s core operating cash-generating capacity improved, and cash flow remains healthy.

Net Cash from Investing Activities

In 2025, net cash flow from investing activities was -76,650,403.51 yuan, significantly narrower than -228,532,991.07 yuan in 2024, a 66.46% reduction. This is mainly because the previous period involved substantial capital investments for the Kashgar and Meet Sai Lake projects during their construction phase. This period saw reduced investment and increased cash dividends received from equity investments. The decrease in cash outflows alleviates some funding pressure but remains a net outflow, requiring ongoing attention to project progress and returns.

Net Cash from Financing Activities

In 2025, net cash flow from financing activities was -41,861,504.51 yuan, a decrease of 152.29% from 80,051,523.40 yuan in 2024. This is mainly due to the previous period’s project financing, which involved bank loans and minority shareholder investments. The current period saw a sharp reduction in financing inflows and increased debt repayments and dividend distributions. The shift from net inflow to net outflow indicates reduced external funding capacity, requiring attention to future financing arrangements.

Potential Risks

2. Operational Risks: The company’s main business relies heavily on Tianshan Tianchi Scenic Area, with core revenue from road transportation, cable car, and boat tours, which are susceptible to external factors, economic conditions, tourism market trends, and macro policies. Any fluctuations in tourist numbers due to policy adjustments or emergencies could directly impact revenue.

3. Force Majeure Risks: Natural disasters, public health events, and other force majeure incidents could significantly affect operations. Future occurrences of such events may pose downside risks to performance.

4. Market Competition Risks: As tourism develops, increased competition from large enterprises and conglomerates could erode the company’s traditional competitive advantages. Continuous improvement of competitiveness is necessary.

5. Project Investment Risks: New projects like Kashgar and Meet Sai Lake may not meet expected returns if market conditions change, policies shift, or unforeseen factors arise, potentially impacting overall profitability.

6. Management Risks: Expansion into new businesses raises management requirements in finance, service quality, and human resources. Insufficient management capacity could adversely affect performance.

Director, Supervisor, and Senior Management Compensation

• Chairman Lü Meirong: During the reporting period, her pre-tax remuneration from the company was 0 yuan, mainly received from related parties.
• General Manager Li Xinping: Pre-tax remuneration was 464,700 yuan, reflecting a higher level consistent with core management responsibilities.
• Vice President Ding Feng: Pre-tax remuneration was 277,100 yuan; former Vice President Dai Jinya received 356,400 yuan.
• Chief Financial Officer Fang Yan: Pre-tax remuneration was 356,700 yuan, aligned with financial management duties.

Overall, the remuneration system aligns with responsibilities. However, some senior executives receive compensation from related parties, so compliance with related-party transaction disclosures should be monitored.