Termination of IPO!, Qingcheng Mountain, Dujiangyan Irrigation Project Main Board | Tourism | Dujiangyan Irrigation Project

After the listing of Mount Emei A, the second scenic spot tourism listed company in Sichuan, Qingdu Tourism, which was highly anticipated, failed in its IPO on the main board.

On July 5, according to the official website of Shenzhen Stock Exchange, on March 3, Shenzhen Stock Exchange accepted the application documents of Qingcheng Mountain Dujiangyan Irrigation Project Tourism Co., Ltd. for IPO and listing on the main board, and reviewed them according to laws and regulations.

On June 29th, Qingdu Tourism withdrew its application for IPO and listing, and the Shenzhen Stock Exchange decided to terminate the review of its initial public offering and listing on the main board.

Performance fluctuates

Qingdu Tourism mainly relies on the rich tourism resources in Qingcheng Mountain Dujiangyan Irrigation Project Scenic Area to provide cableway and sightseeing bus services for tourists. Currently, the main business owners include Qingcheng Qianshan Scenic Area and Dujiangyan Irrigation Project Guanxian Ancient City Scenic Area, among which, cableway and sightseeing bus services are provided in Qingcheng Qianshan Scenic Area and sightseeing bus services are provided in Dujiangyan Irrigation Project Guanxian Ancient City Scenic Area.

Qingdu Tourism fully utilizes online and offline resources to form diversified sales channels and marketing networks. At present, the company's sales of cableway and sightseeing tickets can be divided into two models: direct sales and consignment sales.

Among them, the direct sales model is mainly aimed at individual customers and sold through the company's on-site ticketing windows. In the consignment sales model, the company cooperates with offline travel agencies and online OTA platforms to sell the company's cableway and sightseeing tickets on their behalf. In this mode, the company directly connects with offline travel agencies and signs a cooperation agreement. The travel agency sells the company's cableway and sightseeing tickets to a team of 6 or more tourists, and organizes tourists to experience the ride. The company provides a certain discount to offline travel agencies on the basis of the market price.

At the same time, Qingdu Tourism also cooperates with OTA platforms such as Tongcheng Tourism. After purchasing tickets and paying the fare on the OTA platform, tourists can go to the ticket checkpoint and check their tickets by presenting an electronic QR code or a reserved phone number.

In terms of performance, from 2019 to June 2022, the operating revenue of Qingdu Tourism was 118 million yuan, 58.6827 million yuan, 70.9917 million yuan, and 17.5304 million yuan, respectively. The net profit was 60.3909 million yuan, 27.3587 million yuan, 41.1255 million yuan, and 4.4869 million yuan, respectively.

In terms of recent performance fluctuations, Qingdu Tourism stated that due to macro factors, the operating performance of the company and comparable companies in the same industry have shown a significant decline. The company's operating revenue in 2020 decreased by 50.24% compared to 2019, and its net profit decreased by 54.45% compared to 2019; From January to June 2022, operating revenue decreased by 54.75% year-on-year, and net profit decreased by 82.49% year-on-year.

Qingdu Tourism stated that overall, the declining trend of the company's performance is basically consistent with comparable companies in the same industry. Although the domestic tourism market may experience certain fluctuations in the short term and locally, the long-term recovery trend of the tourism industry will not change. The decline in the company's operating performance is temporary, and the company has the ability to continue operating.

According to the prospectus of Qingdu Tourism, the passenger flow of scenic spots and the company's operating revenue have basically recovered to over 80% of the level in 2019 before and after the Spring Festival in 2023. It is expected that the company's profit level will also gradually improve in the future.

Proposed fundraising of 346 million yuan

If we look at the main board listing standards after the implementation of the registration system, there are variables in the path of Qingdu Tourism going public.

According to standard one requirements, the net profit within three years is positive, with a cumulative net profit of no less than 150 million yuan, and the net profit in the past year is no less than 60 million yuan. If executed according to Standard 2, the estimated market value should not be less than 5 billion yuan, and the operating income in the most recent year should not be less than 600 million yuan. If applied according to standard three, the expected market value is not less than 8 billion yuan, and the operating income in the most recent year is not less than 800 million yuan.

In addition, there is a risk of business concentration and singularity in Qingdu Tourism. Qingcheng Mountain - Dujiangyan Irrigation Project Scenic Spot includes seven scenic spots, including Qingcheng Qianshan Scenic Spot, Qingcheng Houshan Scenic Spot, and Dujiangyan Irrigation Project Scenic Spot. The existing business of Qingdu Tourism mainly relies on Qingcheng Qianshan Scenic Spot to provide cableway and sightseeing bus services for tourists. The business is relatively centralized and single, and the future development has a strong correlation with the tourist reception of Qingcheng Qianshan Scenic Spot.

After years of development, the development of tourism resources in Qingcheng Qianshan Scenic Area has become relatively mature. The continuous growth of tourist carrying capacity in the scenic area has certain limitations, which has led to certain limitations on the company's existing business growth.

At the same time, Qingdu Tourism's revenue from the cableway business accounted for 69.2%, 71.08%, 60.66%, and 63.11% respectively, showing a downward trend but still being the company's main source of revenue.

It is worth mentioning that Qingcheng Qianshan Cableway and Dujiangyan Irrigation Project Guanxian Ancient City Sightseeing Bus operated by Qingdu Tourism are respectively located in national scenic spots and national 4A tourist attractions. The determination and adjustment of relevant service charging standards need the approval of the competent government departments, and the company cannot raise the charging standards by itself.

Qingdu Tourism plans to raise approximately 346 million yuan in funds for this IPO. Among them, Qingdu Tourism plans to invest approximately 220 million yuan in the "Wudao Qingcheng" cultural and entertainment comprehensive project, accounting for approximately 63.66% of the total fundraising amount. In addition, the company plans to invest 95.2 million yuan and 30.4 million yuan respectively in supplementing working capital and purchasing Qingcheng Qianshan sightseeing vehicles.