Evening of August 21st，Beibu Gulf Brigade (603869) released its 2016 semi-annual report。First half of 2016，Beibu Gulf Travel achieved operating income 1.7.2 billion yuan，Basically the same as the same period last year；Net profit attributable to shareholders of listed companies 2806.60,000 yuan, Decreased by 23% compared with the same period last year.02%；Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses 2724.50,000 yuan，Decreased by 22% compared with the same period last year.9%。

During the reporting period，The company’s revenue is basically the same as the same period last year，Net profit decreased by 23% compared with the same period last year.02%，Mainly because of the main source of tourists (cloud、Expensive、Sichuan, etc.) extreme weather effects，Tourists’ willingness to travel decreases，Resulting in a slight decrease in marine tourism business revenue，On the other hand，New project expansion、Business upgrade、Implementation of capabilities improvement and other measures，Resulting in an increase in costs。

Among them, marine tourism revenue achieved 1.3.2 billion yuan，Decreased by 8 compared with the same period last year.03%，Mainly affected by the decline in business volume of the core business Beiwei route，Passenger volume of Beiwei route during the reporting period 92.150,000 people，Decreased by 5 compared with the same period last year.67%；Passenger volume of South China Sea route 5.530,000 people，Decreased by 14 compared with the same period last year.21%。On the one hand, the company strives to increase revenue from health tourism and ship repair and shipbuilding businesses，Compensating for the decline in ocean tourism business；On the other hand, by enriching product design、Adjust pre-sale policies and develop marketing channels to promote the recovery of ocean tourism business。Health tourism income for this period 0.2.3 188bet Online Sports Betting and Casino billion yuan，An increase of 20 compared with the previous year.97%，Passed the establishment of service standards in the first half of the year、Expand marketing network and other measures，Improved basic abilities，Income has increased significantly， Costs are also rising。Other businesses are mainly shipbuilding business and energy transportation business，Revenue from the 30m firefighting boat undertaken last year is recognized based on progress，Other business income and costs increased significantly。

14-16 first half，Operating costs continue to increase，The compound growth rate is 7.4%；Operating income fell slightly in the first half of 2016，But the overall trend is upward，The compound growth rate is 10.6%； Net profit generally shows an upward trend，The compound growth rate is 52.2%，But it dropped by 23 in the first half of 2016.02%。

188bet Online Sports Betting and Casino Sales expenses increased by 95% year-on-year.85%，Mainly because Xinyi Travel Agency recruits some personnel to improve its capabilities，Increase in personnel salary and increase sales expenses。Management expenses decreased by 10% year-on-year.78%，Mainly due to the expenses related to listing expenses incurred in the previous year，Management expenses dropped normally this year。Financial expenses decreased by 3% year-on-year.93% is due to the decrease in long-term borrowings this year，Reduced interest payment。Operating net cash flow decreased by 38 year-on-year.08%，On the one hand, it is due to the decline in net profit in the current period，On the other hand, it is affected by the increase in accounts receivable from the energy transportation business。Net cash flow from investing activities decreased by 10% year-on-year.80 %，Mainly due to the company’s payment collection for disposal of idle ships，The company’s investment expenditure during the reporting period was basically the same as that of the previous year。

The company’s main strategic deployments during the reporting period:

1. Beihai marine tourism business upgrade，Complete the ship upgrade on the one hand、Start new passenger ship project，Enhance the tourism and entertainment functions of Beiwei route。On the other hand，Expand with local hotels in Beihai、Scenic Area、Scope of cooperation between transportation companies and travel agencies，Update payment method at the same time、Expand online and offline sales channels。

2. Completed 188bet app the Bohai Sea Long Link in Yantai area、Acquisition work of Xinyi Feiyang Passenger Ship and Feiyang Travel Agency，The project of two new 360-seat high-end passenger ships completed，Further increased its share in the Yantai tourist route market。

3. The company's Xinyi Travel Agency has initially formed product research and development capabilities，Building a healthy tourism service system，And gradually establish a product marketing network with the help of external platforms，Conducive to the creation and sales of healthy tourism products in the company’s own scenic spots。

4. On the basis of developing existing destination resources in the North Sea，Officially operates the resources of Longhu Mountain Scenic Area and signed a strategic framework agreement with the People’s Government of Zhifu District, Yantai City for the cooperative development of Kongtong Island， Expanded the company’s own tourism resources。Mainly includes 5A-level Longhushan Taoist health resources、Kongtong Island Resources、Resources at both ends of Beiwei route、Nanlu Island Development Project, etc.。

5. The major asset restructuring project to acquire Bokang Intelligent was approved，After reorganization is completed，The company will rely on Bokang Intelligent’s core technology in the field of big data and practical experience in intelligent construction in subdivided fields，Realize the upgrade of traditional tourism business to smart tourism。

6. In order to meet the needs of Xinyi Travel Agency to improve its capabilities、Talent needs for key initiatives such as new project acquisition，The company focuses on e-commerce technology in the first half of the year、Market Development、Introducing industry talents for scenic spot operation and other positions，Quickly obtain project planning、Scenic spot operation and other capabilities，Advance Longhu Mountain、The rapid implementation of Kongtong Island and other projects。

Beibu Gulf Tourism Co., Ltd. is mainly engaged in marine tourism and health tourism business。Ocean tourism business is the company’s core business and main source of profit，The company is currently operating Beihai-Weizhou Island、Beihai-Haikou、Penglai-Changdao 3 core tourist routes and Kongtong Road island tour、Mountain and sea tour and other special tourist routes，Provide tourists with high-quality maritime tourism service experience。The company extends the industrial 188bet online sports betting chain based on operating routes，Formation of marine tourism products。Healthy tourism business，The company initially develops a healthy tourism product system，Aims to provide tourists with healthy tourism services for self-cultivation。

Company’s core competitiveness:

1． Route advantages

Currently operating "Beihai-Weizhou Island"、"Beihai-Haikou"、Three core marine tourism routes "Penglai-Changdao" and Kongtong Island Island Tour、 Mountain and sea tours and many other special tourist routes，And has been approved to prepare for the opening of international maritime tourism routes。The company can develop and design rich marine tourism products around route resources，Meet the diverse needs of tourists at different levels，Relying on the increasingly abundant tourist routes，around "eat、Live、row、游、Purchase、Entertainment” has a comparative advantage in extending the tourism industry chain。

2. Operational advantages

The company has continuously updated its ships in recent years，Supplement and upgrade capacity， has become the largest fleet、One of the ocean tourism fleets with the strongest passenger capacity。The company has more than 60 years of experience in ocean tourism transportation，Has a professional management team and a large number of experienced senior crew members； The company has established a complete tourist ship management、Repair and maintenance system, etc.，Established a visual GPS dispatch center for ship operations，Real-time monitoring and dispatching command of ship operations。

3. Terminal advantages

The company’s own Beihai International Passenger Port is the home port of the company’s ocean tourism route ships，Located in Silver Beach Scenic Area, Beihai City，Superior location。Beihai International Passenger Port is one of the only two ports in Beihai City that can avoid Category 12 typhoons，Good berthing conditions，Complete supporting facilities，Scheduling of tourist transportation ships for the company、Repair、Maintenance provides convenience。The Weizhou Island West Point Pier indirectly controlled by the company is currently the only passenger terminal on Weizhou Island，Provides a strong guarantee for the operation and sustainable development of the company's travel routes。

4. Product R&D Advantages

The company adopts the "Seven Repairs" health care system， Combined with its own unique tourism resources， Created a series 188bet sports betting app download of health and wellness tourism products。 The combination of "Seven Repairs" health care system and tourism elements，Endow tourism products with health and wellness effects， combination of movement and stillness， Cultivation of mind and body，The product differences that are difficult to replicate have become the company’s unique advantage in competing in the health and wellness tourism market,Formed a team with dual experience in tourism and health、A team that dares to innovate，will be able to support the company’s continued innovation in the field of health tourism。

Analysis of factors affecting the continuity and stability of the company's profitability:

(1) Impact of marine tourism transportation market demand

The company’s core business is marine tourism transportation business，The factors affecting market demand are mainly reflected in the following three aspects: First，Demand brought about by the development of tourism industry in Beihai City and Hainan Province。For Beiwei tourist route，The main customers of this route are tourists entering and leaving the Weizhou Island tourist area，The rapid development of tourism in Beihai City and the construction and development of Weizhou Island tourist attractions，Will directly affect the passenger volume of Beiwei tourist route；For Beiqiong tourist routes，The main customers of this route are tourists from Guangxi to Hainan Province，Therefore，The shipping volume of this route is closely related to the development of tourism in Guangxi and Hainan Province。Second，Demand brought about by the convenience and comfort improvement of the company’s ship transportation。Currently，Old ships on the Beiqiong tourist route，Run slowly、Not very comfortable，Restricts tourists’ riding needs to a certain extent。With the addition and construction of the company's ships in the future and the further improvement of ship management levels，The comfort of ships and the convenience of transportation will be significantly improved，It will attract more tourists to choose marine tourism transportation。Third，The impact of alternative transportation methods on market demand。Currently，Beiwei tourist route only relies on water transportation，There is no alternative。But the Beiqiong tourist route faces the highway、Competition between aviation and railways，Road transportation has the greatest impact on the company。

(2) Impact of fluctuations in marine diesel prices

Fuel cost is an important cost item for the company，Marine diesel price is one of the important factors affecting profitability。In recent years，Due to changes in the international economic situation，International crude oil prices fluctuate sharply，Causing the company’s marine diesel purchase price to fluctuate in the same direction，There is a certain risk of fluctuation in fuel costs。Future fuel price fluctuations will still be the main factor affecting profitability，Mainly reflected in: on the one hand，Fluctuations in marine diesel prices will directly affect the company’s operating costs；On the other hand，Water-land transport is the most important alternative mode of passenger roll-out transportation on Beiqiong tourist routes，The fluctuation of oil prices has an impact on both water transportation and road transportation costs。