1. Company development history

Lijiang Yulong 188bet sports betting Co., Ltd. (referred to as Lijiang 188bet sports betting) is a powerful comprehensive 188bet sports betting group in northwest Yunnan，Has high-grade 188bet sports betting resource advantages and excellent business performance。The current business scope involves tourist ropeways、Real Estate、Hotel、Investment and construction and related supporting services in transportation, catering and other industries。

Lijiang 188bet sports betting was established on October 18, 2001，The predecessor was the original Lijiang Yulong Snow Mountain 188bet sports betting Ropeway Co., Ltd. established in December 1995。It is based on the audited net assets of Lijiang Jade Dragon Snow Mountain Tourist Cableway Co., Ltd. on June 30, 200174,323,048 yuan，Converted into 74 shares at a ratio of 1:1,323,048 shares，Overall change to establish a joint-stock company。

To establish a comprehensive 188bet sports betting enterprise group that combines 188bet sports betting industrial operations and 188bet sports betting culture，Building the development of high-quality 188bet sports betting products、Improving the configuration of the 188bet sports betting service system，Establish the strategic purpose of experiencing characteristic economic development，Lijiang 188bet sports betting was successfully listed on the Small and Medium Enterprise Board of the Shenzhen Stock Exchange on August 10, 2004。

Approved by China Securities Regulatory Commission，Lijiang 188bet sports betting’s first public issuance of RMB ordinary shares to the public 2,5 million shares，The total share capital increased to 99 after the stock issuance,323,048 yuan。Since listing，188bet sports betting is operating in good condition，Stocks performed well in the capital market。

As of December 31, 2014，188bet sports betting’s registered capital is 281,790,109.00 yuan，Among them: 85 A shares with restricted sales conditions,204,159.00 shares；Tradable shares A shares without sale conditions 196,585,950.00 shares。

1、December 2005，Lijiang 188bet sports betting and Maoniuping 188bet sports betting Cableway Company jointly invested in the establishment of Yunnan Ruilong 188bet sports betting Investment Co., Ltd.。December 2006，World Heritage Forum Center is under construction。

2、September 2007，Lijiang Holdings subsidiary Yunnan Ruilong 188bet sports betting Investment Co., Ltd. and Kunming Dianchi Golf Co., Ltd. jointly funded the establishment of Kunming Longfang 188bet sports betting Development Co., Ltd.。

3、March 2008，Yunshanping tourist ropeway completed reconstruction and trial operation。

4、2011，Lijiang 188bet sports betting completed the acquisition of 51% equity of Impression 188bet sports betting，Business scope expanded to the field of theatrical performances。

5、2013，Jade Dragon Snow Mountain Tourist Comprehensive Service Center and 5596 Commercial Street were completed and put into operation，Enterprise 188bet sports betting expanded to the operation and management of restaurants and commercial streets。

6、February 8, 2015，Lijiang 188bet sports betting Company、"Crowne Plaza Lijiang Hefu" entrusted to the management of InterContinental Hotels Group，Upgraded and renamed to "InterContinental Lijiang Hefu Resort"。

II. Overall 188bet sports betting operations of the enterprise

1. Income and profit

188bet sports betting income represents the business activities of an enterprise，Income from economic benefits formed in the process of selling goods and providing services，It is an intuitive reflection of the 188bet sports betting status of an enterprise。

Operating income minus operating costs and expenses，i.e. operating profit。And the total profit，It is operating profit plus non-operating profit (that is, the difference between non-operating income and non-operating costs)。Net profit refers to 188bet sports betting’s profit retention after deducting income tax from the total profit。

Lijiang 188bet sports betting Revenue Profit Statement from 2010 to 2014

Lijiang 188bet sports betting revenue and profit chart from 2010 to 2014

As can be seen from the above chart，2010~2014，Lijiang 188bet sports betting has achieved steady growth in operating income and corporate profits as a whole，The company’s development is gradually on a stable track。

Due to severe drought in 188bet sports betting in the first half of 2010，Reduction in the number of tourists received，Have a certain impact on the company’s performance，Net profit for the year decreased by 55% compared with the previous year.14%。To 2011，Company performance resumes，And completed the acquisition of 51% equity of Impression Travel that year，Expand the business scope into the field of theatrical performances。

2012~2014，Lijiang’s 188bet sports betting revenue has achieved rapid and steady growth，Recorded 6 respectively.18%、13.16%、11.33% growth rate。Net profit growth，Net profit has fluctuated in the past three years，Net profit growth in 2013 was only 0.62%，It quickly returned to 21 by 2014.87%。

This is mainly because in 2013 the company invested in the new Jade Dragon Snow Mountain Tourist Comprehensive Service Center and the Hotel Indigo 188bet sports betting Old Town successively opened for trial operation，5596 Commercial Street Project Construction Completed，Transferred to investment real estate and measured using cost model。

According to accounting standards，All start-up expenses of more than 26 million yuan incurred during the preparation period of the three projects were included in management expenses，At the same time，The project was in the trial operation period during the reporting period，Not yet profitable，Therefore, it had a greater impact on the profit of Lijiang 188bet sports betting in 2013。

The asset-liability ratio is the percentage of total liabilities divided by total assets at the end of the period，That is, the proportional relationship between total liabilities and total assets。The asset-liability ratio reflects what proportion of total assets is financed through debt，is a comprehensive indicator to evaluate 188bet sports betting's debt level and operating risk，It is also an indicator that measures a company’s ability to use creditor funds for operating activities，It also reflects the safety of creditors’ loans。

2010~2014 Lijiang 188bet sports betting Balance Sheet

Lijiang 188bet sports betting Assets and Liabilities from 2010 to 2014

2010~2014，The total assets of Lijiang 188bet sports betting enterprises are increasing year by year，Indicates that the company’s business scale continues to expand，Better operating results in 2014，The company’s asset value is growing rapidly，A new high in five years。Corporate liabilities，The total value of Lijiang’s 188bet sports betting liabilities has changed steadily over the past five years，Debt levels reached highs in 2012，Gradually decrease from now on。

188bet sports betting’s asset-liability ratio for the five years from 2010 to 2014 was 35.02%、30.47%、39.18%、36.02%、21.78%。The ratio of liabilities to total assets in the first four years has generally remained at three、Between 40%，And reached a high value in 2012 due to significant debt growth；2013、In 2014, with the continued rapid growth of 188bet sports betting's assets and the gradual decline of liabilities，The asset-liability ratio dropped rapidly。

Comparative analysis of asset-liability ratio and profit growth，The net profit growth of Lijiang 188bet sports betting in the past five years is generally faster than the growth of the asset-liability ratio，Indicates that the company is developing well，Significant operating returns，Owner’s equity, that is, net assets continues to increase，Asset-liability ratio decreased accordingly。

Compare it with the net cash flow，Lijiang 188bet sports betting’s net cash flow from operating activities has been relatively abundant in the past five years、Smooth，Have certain ability to pay liabilities，Indicates that the business activities of the enterprise are in a virtuous cycle。

Overall，Lijiang 188bet sports betting makes full use of financial leverage，Expand the scale of business operations in a timely manner，With the gradual realization of various profits of the company，The company’s net assets are rapidly accumulating，Decrease in asset-liability ratio，The pace of corporate development has become more steady。

For companies issuing shares，Divide the amount of net cash flow from operating activities by the number of shares issued，You can get the operating cash flow per share。It is used to reflect the amount of cash inflow from 188bet sports betting’s operating activities，If a company’s earnings per share are high，But if the cash flow is poor，It means that the listed company does not have enough cash to guarantee the payment of dividends。In some foreign financial report research and analysis books，It is often required that 188bet sports betting cash flow per share of high-quality companies should be more than 20% higher than earnings per share。

2010~2014 Lijiang 188bet sports betting Cash Flow Statement

Lijiang 188bet sports betting cash flow situation chart from 2010 to 2014

The above cash flow chart shows，Lijiang’s net cash flow from 188bet sports betting operating activities increased significantly from 2010 to 2011，Maintain steady growth after 2011。It can be clearly seen from the picture above，2013、The company’s total share capital expanded in 2014，This resulted in Lijiang 188bet sports betting’s operating cash flow per share declining in 2013 after experiencing rapid growth from 2010 to 2012、Two years of decline in 2014。

With 188bet sports betting’s five-year earnings per share 0.29、0.55、0.64、0.694、0.Compared to 656 yuan，188bet sports betting’s five-year operating cash flow per share reached 0.79、1.51、1.67、1.34、1.08 yuan，Indicates that 188bet sports betting’s cash flow from operating activities is very abundant，188bet sports betting realizes most of its profits in the form of cash，Have sufficient cash flow to maintain business operations and continue to promote business，and dividend payment with guaranteed dividend。

2014 Lijiang 188bet sports betting Earnings per Share 0.656 yuan。Lijiang 188bet sports betting stock price closed at 12 per share on July 15, 2015.86 yuan。

Net asset value per share reflects 188bet sports betting’s net asset value represented by each share，Is an important foundation to support the stock price of listed companies。The greater the net asset value per share，Indicates that the greater the wealth represented by each share of 188bet sports betting's shares，Usually the stronger the ability to create profits and resist the influence of external factors。

Lijiang 188bet sports betting’s net assets per share in the five years from 2010 to 2014 were 6.28、5.38、6.21、5.34、7.25 yuan，Roughly maintained between 5 and 8 yuan，Songcheng Performing Arts, a listed travel company with its peers, has net assets per share of 6.The level of 3472 yuan is basically the same。

Combined with the aforementioned assets and liabilities，Steady adjustment and growth of Lijiang 188bet sports betting’s net assets per share，Indicates that the company is achieving rapid growth in assets，Also give full play to the role of financial leverage，Obtain financing by appropriately expanding liabilities，To promote the development of the company's business，Therefore, the growth of the company’s net assets was once relatively limited， By 2014, with the gradual realization of corporate investment profits，The company’s net asset value has increased significantly，Net assets per share also pushed to a high point。

And ROE，It is the percentage rate obtained by dividing 188bet sports betting’s after-tax profit by the owner’s equity，Used to measure the efficiency of a company's use of its own capital。The higher the return on equity，Indicates that the more returns shareholders receive per unit of capital invested。

Lijiang 188bet sports betting’s five-year weighted average return on equity from 2010 to 2014，Except 2010 which is 7.Other than 46%，The remaining years are all above 10 percentage points，Reached 16 in three years from 2011 to 2013.28%、16.80%、15.78%。Due to the rapid growth of net asset value in 2014，Although corporate profits also increased significantly，But the number is still reduced to 10.30%，That is, for every 1 yuan invested by shareholders, there will be 0.Return of 103 yuan。

Net assets grew faster than profits，Indicates that the financial risk of the enterprise is small，The pace of development is relatively steady，188bet sports betting still has considerable profits to be realized，Assets to be further revitalized and utilized，Profit potential is not small。

Lijiang 188bet sports betting Business Scope，Including tourist ropeways and other related supporting facilities，He pair travel、Real Estate、Hotel、Transportation、Investment in catering and other industries、Construction。

Currently，Company Ropeway Business、Impression performance business and hotel business are the main sources of 188bet sports betting’s operating income，The ropeway business and impression performances are the main sources of 188bet sports betting’s profits，Plays a key role in 188bet sports betting’s operating performance。

1. Ropeway 188bet sports betting: rapid growth, majority of profits

188bet sports betting mainly operates the Jade Dragon Snow Mountain Tourist Cableway、Yunshanping and Maoniuping tourist ropeways and related supporting facilities；Three ropeways take tourists to Glacier Park、Yunshanping Forest Park and Maoniuping Mountain Park，These three parks are the three most well-known and mature attractions in the Jade Dragon Snow Mountain Scenic Area，Is the main tourist reception facility in the Jade Dragon Snow Mountain Scenic Area。

Has unique product advantages in the 188bet sports betting services of Jade Dragon Snow Mountain Scenic Area。The company’s ropeway business has maintained steady growth in recent years，Plays an important role in the company’s revenue and profits。

The three ropeways received a total of 337 tourists in 2014.310,000 people，41 more than in 2013.630,000 people，Growth 14.08%。where，The Jade Dragon Snow Mountain Cableway receives tourists 157.740,000 people，12 more than in 2013.250,000 people，Growth 8.43%；Yunshanping Cableway receives tourists 168.460,000 people，26 more than in 2013.780,000 people，Growth 18.90%；Maoniuping Ropeway Receiving Tourists 11.120,000 people，An increase of 2 from 2013.590,000 people，Growth 30.44%。

The Crowne Plaza Hefu and Hotel Indigo 188bet sports betting Old Town invested and constructed by the company are the only international brand leisure and conference hotels in the Old Town of 188bet sports betting, a world cultural heritage site。The hotel is managed by InterContinental Hotels Group，InterContinental Hotels Group is currently the world’s largest and most widely distributed professional hotel management group，owns Intercontinental、Crown Plaza、Many internationally renowned hotel brands such as Holiday Inn and more than 60 years of international hotel management experience。

At the same time, InterContinental Hotels Group is also the largest guest room owner 188bet sports betting world、The widest range of multinational operations，The super hotel group that has taken over the most hotels in China，And owns one of the world’s largest hotel customer programs—Priority Club Rewards。

Since the opening of Crowne Plaza 188bet sports betting，its software, hardware and supporting facilities、Service quality and management level have been fully recognized by guests and InterContinental Hotels Group，High customer satisfaction。

Hotel service level、Supporting facilities、It has obvious competitive advantages over hotels of the same level in 188bet sports betting in terms of location and market positioning。From February 8, 2015，"Crowne Plaza 188bet sports betting Hefu" was officially upgraded to "InterContinental 188bet sports betting Hefu Resort"，Further enhances the hotel’s competitiveness。

2014，Crown Plaza 188bet sports betting Hefu (now upgraded to InterContinental 188bet sports betting Hefu Resort) achieved operating income of 7,619.390,000 yuan，Decreased by 23 compared with 2013.26%；Total profit realized 2,216.290,000 yuan，42% lower than 2013.62%。All branches under the merged hotel company、After Hotel Indigo and the owner’s report，Hefu Hotel Co., Ltd. achieved 188bet sports betting income of 10 in 2014,951.880,000 yuan，An increase of 3 compared with the same period last year.38%。

Total realized profit-2,011.030,000 yuan，Decreased by 318 compared with the same period last year.22%，The net decrease is 1,530.180,000 yuan，Realized net profit is -1,534.440,000 yuan。188bet sports betting income increased compared with the same period last year，Mainly due to the addition of Hotel Indigo、5596 Commercial Street、Income from the property management company and LUX Hotel in the ancient city，However, the new revenue from newly opened projects failed to fully cover the newly increased costs, resulting in an increase in 188bet sports betting income and a decrease in profits。

3. Artistic performances: steady growth, stable customer base

2011，The company completed the acquisition of 51% equity of Impression Travel，The company’s business scope has expanded to the field of theatrical performances。Impression 188bet sports betting currently mainly operates the original large-scale live performance "Impression·Lijiang"，Its business income mainly comes from performance ticket income。

"Impression·Lijiang" is directed by Zhang Yimou、Wang Chaoge、Planned by famous artists such as Fan Yue、Creation、Large-scale live performance directed by，It took more than a year to complete the editing work，Started official performance in July 2006，This is another high-quality 188bet sports betting and cultural performance created by Zhang Yimou's creative team after the success of "Impression·Liu Sanjie"。

After years of acting and continuous innovation，The performance of "Impression·Lijiang" is becoming increasingly mature，Won widespread praise from domestic and foreign tourists，Become synonymous with Lijiang cultural 188bet sports betting。The number of visitors to "Impression·Lijiang" and the number of tourists to the Jade Dragon Snow Mountain Scenic Area、The proportional relationship among the three tourist receptions in Lijiang is relatively stable。

As ​​long as there are no major adverse changes in the domestic and foreign macroeconomics，The number of tourists in Lijiang will still maintain steady growth，The operating situation of Impression 188bet sports betting will also remain stable。Since the opening of Impression Lijiang，Visitor reception continues to rise，With the increase in reception base，The reception volume has stabilized and increased in recent years。

2014，Impression 188bet sports betting 987 performances，Received 235 tourists in total.90,000 people，27 more than the same period in 2013.790,000 people，Up 13 year-on-year.35%。Realize main business income 25,426.860,000 yuan，An increase of 9 compared with the same period last year.01%；Achieve net profit 10,282.850,000 yuan，YoY growth 2.83%。

In addition to the above main businesses，2014，Longde Company、Longchen Supervision Company、White Deer Travel Agency、Sightseeing bus company、Longjian Company’s various businesses contributed a total of 885 to 188bet sports betting’s shareholders’ net profit.570,000 yuan。

In 2014, 188bet sports betting’s core business segment is still ropeway transportation、Three major parts of hotel management and impression performance。During the reporting period，The ropeway transportation business achieved a total operating income of 32,644.40,000 yuan，The proportion of 188bet sports betting’s total operating income is 43.95%；The hotel business achieved a total operating income of 9,455.950,000 yuan，The proportion of 188bet sports betting’s total operating income is 12.73%；The impression performance business achieved a total operating income of 25,426.860,000 yuan，Proportion of 188bet sports betting’s total operating income 34.23%。

In summary，The overall operating situation of Lijiang Yulong 188bet sports betting Co., Ltd. is good，Business composition continues to be diversified，Corporate profits and net assets are increasing year by year，Sound financial strategy，The scale of development continues to expand，The strategic blueprint is becoming clearer，The overall pace is steady but fast。

The company makes full use of its unique 188bet sports betting resource advantages to achieve profitability，Currently, the proportion of ropeway and other businesses is still relatively large，In the future, we can continue to expand our business territory to the upstream and downstream areas of our existing business，Continue to improve the level of 188bet sports betting products and services，Based on your own actual situation，Accelerate resource integration and industry integration，Build a comprehensive leading 188bet sports betting enterprise covering all aspects of the 188bet sports betting industry chain，Achieving enterprise upgrading and transformation。