1. 188bet grew rapidly in the first half of the year and net profit and loss narrowed

August 14, 2017，Chengde Mountain 188bet Tourism Co., Ltd. (hereinafter referred to as securities abbreviation: Mountain 188bet，Stock code: 870861.OC) releases 2017 semi-annual report: during the reporting period，Realized revenue 916.430,000 yuan，up 209 year-on-year.11%；Realized net profit-81.560,000 yuan，Narrowed by 50% year-on-year.75%。

During the reporting period，The operating income of the Summer 188bet increased by 209% compared with the same period last year.11%，Mainly due to the following two reasons:

The first is: the improvement of service and explanation level and the increase of publicity and promotion efforts(Previously, a guide office was established to provide voluntary guides for tourists)。Also，Due to the high temperature this year，The peak season is earlier than last year，Directly increase ticket 188bet by 3.7 million yuan；

The second is: travel agencies carry out publicity and promotion activities by effectively organizing tour guides，Publicity service fee income increased by 2.4 million yuan。

At the same time,During the reporting period，Net profit decreased by 50% compared with the 188bet year.75%。Mainly due to the increase in operating income during the current period，Except for some increases in operating costs，The constant cost in operating costs has not changed，As a result, the gross profit margin of this period increased by 56.32 percentage points，Ultimately leading to a narrowing of net profit losses。

2.Changes in 188bet structure，Nearly 30% of the main 188bet comes from publicity service fees

According to Zhihui’s understanding，Summer 188bet was established in 2001，And successfully listed on the New Third Board through agreement transfer on March 3, 2017。Its main business mainly relies on the National Summer 188bet Mountain 188bet Scenic Area, the first batch of 5A tourist attractions，Engaged in Chengde Mountain 188bet Mountain Sightseeing Car Tour Service，That is, through the development of scenic spots，Providing travel services to tourists，Essentially, it is the development and management of tourism resources。The scope of this service is Chengde Summer 188bet Scenic Area，Because we can fully benefit from the unique tourism resources of the summer 188bet。Also，Chengde Summer 188bet and Summer Palace、Humble Administrator's Garden、The Liuyuan Garden is also known as the four famous gardens in China，Inscribed on the World Heritage List in December 1994。

Analysis from the main business (by product) during the reporting 188bet:Compared with the 188bet year，The proportion of mountain tour ticket revenue decreased by approximately 22%.38 percentage points，But revenue was nearly three times that of the same period；Meanwhile，During the reporting period，Increase publicity service fee income to 256.590,000 yuan，Accounting for 28% of current period’s revenue.00%。

The reason for the above phenomenon is: May 2016，Summer 188bet established subsidiary Chengde Rehe Travel Agency Co., Ltd.，Specially responsible for marketing and promotion。The main business income of this subsidiary is publicity services，Achieve operating income of 71 in the second half of 2016.500,000 yuan。

final，Resulting in the reporting 188bet，The share of mountain tour ticket revenue in total operating revenue has dropped significantly compared with the same 188bet，The proportion of corresponding publicity service fee income in total operating income has increased，In turn, the original revenue structure that relied solely on mountain tour tickets，There has been a certain degree of change，From this，The ability to avoid certain business risks can be enhanced within the calendar year。

3.Cash flow changes are stable，Laying a solid foundation for its transformation 188bet capital market

Summer 188bet shareholder Chengde Summer 188bet Tourism Group Co., Ltd. (89 shares held).98%) and Chengde State-owned Assets Management Co., Ltd. (holding 10 shares.02%) are all companies actually controlled by the Chengde State-owned Assets Supervision and Administration Commission。Among them，The tourism group is a third-level subsidiary of the Chengde State-owned Assets Supervision and Administration Commission (the first-level subsidiary is controlled by Chengde，The second-level subsidiary is Guangdong Chuangfa，The third-level subsidiary is a tourism group)，Chengde Capital Management is a wholly state-owned company (first-level subsidiary) invested by the Chengde State-owned Assets Supervision and Administration Commission。Therefore, the actual controller of the Summer 188bet is Chengde State-owned Assets Supervision and Administration Commission (100% indirect shareholding)。Currently，There is only one wholly-owned subsidiary of Summer 188bet。

From the above table，Analysis shows: during the reporting period，Net cash flow from operating activities increased by 59% compared with the same period last year.96%。The main reason is，Summer 188bet increases publicity，Improve service level，The company’s revenue in this period increased by 209 year-on-year.11%，Among them, both commodity sales and labor service revenue increased，Resulting in increased cash flow；

During the reporting period，The cash flow generated from financing activities fluctuated significantly compared with the same period last year，The main reason is that Summer 188bet increased capital in 2016 to improve the company’s scale and competitiveness，The company has no relevant financing activities in this period；

During the reporting period，The cash flow generated from investing activities fluctuated greatly compared with the same period last year，In 2016, the Rehe Travel Agency subsidiary was established mainly for the investment of the Summer 188bet。In this period，The cash flow from investment activities in Summer 188bet is only for the purchase of part of the assets，No foreign investment。

Maybe，As mentioned in the "Letter to Investors" in the 2017 semi-annual report of Summer 188bet: In the foreseeable future，The company’s business scale will continue to expand，Profit level will continue to increase，Lay a solid foundation for realizing the transformation of enterprises in the capital market。

In addition，There was no financing in the Summer 188bet in the first half of 2017。