Shangtu International Travel has switched to overseas business，Seeking to be listed on the New Third Board。This company achieved revenue of 5228 in 2016.520,000 yuan，37 year-on-year increase.63%，Realized net profit 65.460,000 yuan，1367 year-on-year increase.71%。The total net profit is not much，But it is growing rapidly，Benefited from Shangtu International Travel’s switch to overseas business with higher gross profit。

From the perspective of product revenue，Developing overseas group business，Outbound tourism business achieved revenue of 3661 in 2016.400,000 yuan，85 year-on-year increase.22%；Inter-industry distribution proportion increases，by 14 in 2015.56% increased to 21 in 2016.52%；Enhanced R&D and bargaining power in line and accommodation business。

Days ago，Beijing Shangtu International Travel Service Co., Ltd. (hereinafter referred to as securities abbreviation: Shangtu International Travel) submitted a public transfer statement to the National Equities Exchange and Quotations (hereinafter referred to as the "New OTC Market")，Planning to be listed on the New Third Board。

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As understood，Shangtu International Travel was established in 2011，Mainly engaged in organization、Recruiting outbound tourism business and domestic tourism business，There are 13 branches and business outlets。The joint-stock company was established in March 2017，Currently Shangtu International Travel has 2 shareholders，holds 80% and 40% of the shares respectively。

During the reporting period，Shangtu International Travel is on the basis of maintaining the stability of domestic tourism business，Strengthened the development of 188bet app outbound tourism business，Achieved substantial growth in outbound tourism business，The proportion of outbound tourism business revenue in total revenue increased。

Outbound tourism business:Outbound tourism business achieved revenue of 3661 in 2016.400,000 yuan，85 year-on-year increase.22%，Sales proportion increased from 52.03% increased to 70.03%；The proportion of outbound tourism business in the current operating income from January to April 2017 was 87.48%。In terms of outbound travel routes，Affected by international factors，The 2016 Japan and South Korea travel routes have been affected to a certain extent，The operating income of this part of the line has declined to a certain extent，But Shangtu International Travel has developed some new tourist routes，If a cruise tour route is added，The unit price of this type of travel route is high，Ensuring substantial growth in operating income from its outbound tourism business in 2016；

Domestic tourism business:Domestic tourism business achieved revenue of 1567 in 2016.120,000 yuan，14 year-on-year decrease.00%，Sales ratio increased from 47.97% dropped to 29.97%，Mainly due to its proactive adjustment of business strategies，Stop promoting some domestic travel routes with low gross profit margin。January-April 2017，The proportion of outbound tourism business revenue in main business revenue further increased to 87.48%，Mainly because Shangtu International Travel continues to increase the promotion of outbound tourism products，Due to the continuous shift of business focus to outbound tourism business。

Overall:Achieved operating income of 5228 in 2016.520,000 yuan，37 year-on-year increase.63%。Analysis from the perspective of market development efforts，The main reason for the substantial increase in operating income during the reporting period is: Shangtu International Travel established two new branches in 2016、Based on two sales departments，At the same time, it increased marketing efforts and advertising investment，The number of customers has increased significantly。

2.Inter-industry distribution proportion increases，Enhanced R&D and bargaining power in line and accommodation business

During the reporting period，The proportion of operating income from end consumers (individuals and entities) in total 188bet online sports betting operating income continues to decline，The proportion of operating income from travel agencies in the same industry to total operating income continues to increase。where，2015、2016、January-April 2017，The proportion of operating income from end consumers (individuals and entities) to total operating income is 85.44%、78.48%、57.48%；The operating income from travel agencies in the same industry accounts for 14% of the total operating income respectively.56%、21.52%、42.52%。

2015、2016，Shangtu International Travel Service’s main business cost composition and ground transportation comprehensive cost、The proportion of transportation costs in main business costs is relatively stable，Hotel accommodation、The proportion of group funds has changed significantly。The proportion of hotel accommodation expenses in main business costs increased from 12 in 2015.31% increased to 24 in 2016.94%，Mainly due to the increase in Shangtu International Travel’s own travel routes，The cost performance of separate hotel accommodation business has been improved，Shangtu International Travel has increased its independent purchase of hotel accommodation business，leading to an increase in its proportion。

January-April 2017，The main business cost composition of Shangtu International Travel has changed significantly，Transportation costs for separate purchases、The proportion of hotel accommodation costs has dropped significantly，Mainly from January to April 2017，Shangtu International Travel’s operating income comes from the travel routes that represent other travel agencies, accounting for a relatively high proportion，Shangtu International Travel serves as the organizing agency for this part of the business，Do not purchase the corresponding air tickets directly、Hotel，Traffic leading to separate purchases、The proportion of hotel accommodation costs has dropped significantly。

Shangtu International Travel January-April 2017、2016、The gross profit margin of the main business in 2015 was 13.72%、11.62%、10.77%，Main business comprehensive gross profit margin，showing an increasing 188bet app download trend year by year。Breaking it down:

(1) January-April 2017，The gross profit margin of outbound tourism business is 13.74%，Domestic tourism business gross profit margin is 13.52%；

(2)2016，The gross profit margin of outbound tourism business is 11.55%，Domestic tourism business gross profit margin is 11.78%；

(3)2015，The gross profit margin of outbound tourism business is 10.14%，Domestic tourism business gross profit margin is 11.46%。

During the reporting period，Shangtu International Travel’s outbound tourism business gross profit margin、Domestic tourism business gross profit margins show an upward trend，The reasons are as follows:

(1) Shangtu International Travel focuses on developing tourism routes with higher gross profit margins in its operations，Stop promoting tourist routes with low gross profit margins in due course；

(2) The National Tourism Administration continues to crack down on organizing “unreasonable low-price tours”。

3.Net cash flow from operating activities does not match net profit，There is a certain correlation with the interbank settlement cycle

During the reporting period，The net cash flow generated by Shangtu International Travel from operating activities in 2016 was 24.010,000 yuan，Decreased by 75% year-on-year.21%；Net profit achieved 65.460,000 yuan，1367 year-on-year increase.71%，Net cash flow from operating activities does not match net profit。

Shangtu International Travel January-April 2017、2016、The net cash flow generated from operating activities in 2015 was -221.860,000 yuan、24.310,000 yuan、96.850,000 yuan，Showing a downward trend，The main reason is:

(1) Shangtu International Travel’s operating income in 2016 increased by 37% compared with the previous year.63%，Due to the certain settlement cycle with travel agencies in the same industry，Resulting in an increase of 214% in the closing balance of accounts receivable at the end of 2016 compared with the end of 2015.250,000 yuan；

(2) The operating income of Shangtu International Travel increased significantly in 2016，Resulting in an increase of 35% in corresponding tax expenditures.580,000 yuan、Salary payment increased by 59.330,000 yuan。The growth rate of cash inflow from operating activities is lower than the growth rate of cash outflow from 188bet app operating activities，Resulting in a significant decrease in net cash flow generated from operating activities in 2016 compared with 2015。

Shangtu International Travel Items Payable at the End of 2015、End of 2016、End of April 2017，The balance is 35.560,000 yuan、228.940,000 yuan、76.360,000 yuan。The balance of accounts payable at the end of 2016 increased by 193 compared with the end of 2015.380,000 yuan，Increase 543.89%，Mainly due to Shangtu International Travel’s vigorous business expansion in 2016，Operating income、The rapid increase in operating costs has led to an increase in the amount of payments due to suppliers。

Shangtu International Travel said: In the next two years，The company will still be based in Beijing，Deeply explore the tourism resources around Beijing，Innovative product categories，Implement differentiation strategy，Cultivation of business growth momentum in regional markets。At the same time，The company will actively deploy in cities and regions rich in tourism resources，Actively and steadily promote the development of offline physical stores，Further expand the company’s development space。