October 27，The third quarterly report of Xi’an Tourism has been disclosed。During the reporting period，Xi’an tourism total revenue 5.7.1 billion yuan，YoY growth of 6.12%，Net profit attributable to listed shareholders is 1.68 million yuan，3% year-on-year growth，The net profit attributable to shareholders of the listed company after excluding non-recurring gains and losses is -19.21 million yuan。Public data display，Although it has begun to turn a profit，But after deducting the company’s investment 188bet app Financial Management income of 24.49 million yuan during the reporting period，Net profit attributable to shares of listed companies will continue to be negative。Since 2016，Xi’an Tourism purchased financial fund products in 5 times，Total cost 2.300 million yuan，Financial management products have become the most reliable guarantee for Xi’an Tourism, an old travel company, to create high profits。

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Xi’an Tourism is affiliated to Xi’an Tourism Group Holding Company，Main business is travel agency and hotel operation，The company’s tourism business covers the six major areas of “food, accommodation, travel, shopping and entertainment”，Has high brand awareness in Xi'an，Two of its travel agencies have a history of more than ten years 188bet online sports betting in the Xi'an travel agency market，We receive an average of 200,000 tourists per year，The hotels are located in various tourist attractions in the region、Transportation hubs and commercial centers。

In recent years，Due to the pressure from online travel companies on traditional travel agencies and the changes in people’s travel patterns and consumption upgrades，The traditional travel agency industry is experiencing business decline and shrinking profits，The operating conditions of many domestic travel agencies are not optimistic。First half of 2016，Total operating income of Xi’an Tourism’s travel agencies3.2.4 billion yuan，Accounting for 89% of total revenue.69%，Travel agency operating costs 3.1.6 billion yuan，93% of total cost.38%，Travel agency profit is 7.44 million yuan，33% of total profit.41%，Gross profit margin 2.3%。Visible from data，Xi’an’s tourism revenue accounts for about 90%，But the profits created only account for one-third，The profitability of travel agency business is very poor。The data from the CYTS semi-annual report for the same period shows，Although fierce competition among travel agencies has led to a decrease in gross profit margin，But still at 7.37% gross profit。

Another Xi’an Tourism hotel business performed well，Hotel business revenue in the first half of 2016 was 37.24 million yuan，10% of total revenue.31%，Hotel operating cost 22.42 million yuan，6% of total cost.62%，The hotel realized a profit of 14.82 million yuan，66% of total profit.59%，Gross profit margin reaches 39.80%。

As the two core businesses of Xi’an tourism，Poor performance of travel agencies and hotels，Let this old state-owned enterprise with a market value of 3.6 billion yuan adopt a more conservative management method，Compensating for main business losses through 188bet app Financial Management income。Xi’an tourism starts from January 16, 2016，Purchased 2 times 5 times.300 million yuan financial management fund，Received nearly 25 million yuan in income，This part of the income offsets the business losses，Achieved Xi’an Tourism’188bet online sports betting s performance of turning losses into profits with a net profit of 1.68 million yuan in the third quarter report。Look ahead，The compound growth rate of Xi’an Tourism’s operating income from 2011 to 2014 is -3.4%，The net profit after deducting non-recurring gains and losses in 2013-2014 continued to suffer losses。Net profit in 2015 reached 10.82 million yuan，Start turning losses into profits，Mainly due to the increase in non-recurring gains and losses in demolition compensation and year-on-year investment and financial management income。

According to Zhihui’s understanding，Xi’an Tourism’s performance today，It has both its own business reasons and the influence of the industry environment。Why are the profits of Xi’an Tourism’s travel agencies so low？What are the reasons，In response to these questions, the author tried to contact Xi'an Tourism Secretary Meng Lei，But the phone has been unanswered。The author learned from many travel agency practitioners this year，Due to fierce online and offline competition，Serious homogeneity in the industry、Continuous price war，In addition, labor costs are rising，There is no significant improvement in operating efficiency and product innovation，Resulting in the continuous dilution of travel agency profit margins。Although Xi'an Tourism has its own hotel resources，But now more and more domestic tourists choose to travel independently，The number of tour group guests has been affected，These changes will affect the performance of Xi’an Tourism’s travel agencies。

Hotel business gross profit is in good condition，Why doesn’t Xi’an tourism develop vigorously？

Zhihui learned，Xi’an Tourism has 2 four-star hotels、12 one to three star hotels、8 national special hotels and 11 Chinese time-honored hotels。Adopt the practice of subcontracting and subletting to external parties in the operation and management of its hotel business，Reduce the actual costs incurred by self-operation through leasing。Currently，New Guanghua Hotel under Xi'an Tourism、The Northwest Hotel is rented out。Hotel expert consultant said: 188bet app "Xi'an Tourism has also opened many new hotels in recent years，But under the pseudo market demand of oversupply，Fierce competition。This type of traditional old state-owned hotel cannot meet the personalized/diversified needs of consumers, resulting in poor management、Severe losses and unable to invest in renovation，This forms a vicious circle。”Related data display，In recent years，The development of Xi’an hotel market is greatly affected by the tourism environment，Except 2011，The hotel market net profit margin and return on investment are negative in the remaining years。Among them，The occupancy rate of three-star hotels has dropped by about 50% in recent years，It even fell to 44 in the first quarter of 2016.56%，Revenue RevPAR has also been falling。

Discovered by sorting out the recent market dynamics and capital operation of Xi’an tourism，Xi’an Tourism’s investment in the two core businesses is slowly slowing down，In turn, interest and development in commercial real estate and specialty products in the tourism industry chain are increasing，Previously acquired equity in outlets，Later, Hangzhou Saishi Garden cooperated to develop Huacai Town。How will travel agencies and hotels, the main businesses of Xi'an tourism, develop，Zhihui’s call to Xi’an Tourism failed to receive a reply。

Xi’an’s tourism transformation and upgrading development strategy is not in a good position to break through

Regarding the difficulties faced by the company in its two core businesses，Xi’an Tourism Instructions，We must use new means of Internet informatization，Focusing on building the entire tourism industry chain，Optimize core business growth methods，Taking the development path of transformation and upgrading。July 8, 2016，Xi’an Tourism announces acquisition plan，Plans to acquire 100% equity of Sanxing, a campus advertising and media company listed on the New Third Board, for 1.1 billion yuan。Xi’an Tourism Name，The purpose of acquiring Sansanxing is to expand the business of listed companies，Improve comprehensive competitiveness，On the other hand, it 188bet sports betting app download is to enhance the future profitability of listed companies。current，The campus college student group and the digital marketing industry are in a rapid growth stage，Digital marketing advertising can generate integrated synergies for the company’s current travel business，As a breakthrough for the company to develop its Internet business，The company will drive current business development through the merger and acquisition of Sanxing。And finally，Due to the inability to reach an agreement on important terms such as the valuation of the target company，October 17，Decided to terminate Xi’an Tourism’s acquisition plan of Sanxing after consultation。This move was announced starting from April this year，Xi’an Tourism’s 6-month major transformation plan ultimately failed。Xie Pingwei, chairman of Xi'an Tourism, said: "The company promises not to plan any major asset restructuring matters for at least one month from the date of the announcement of the termination of the restructuring。Under the premise of legal compliance，The company does not exclude cooperation with any partner that can promote the healthy and sustainable development of the company。” Meng Lei, Secretary of Xi’an Tourism Board, also said at the meeting，The company will continue to promote its transformation and upgrading through mergers, acquisitions and reorganization，Enhance the company’s development vitality。

September 15，Xi’an Tourism successfully acquired equity in outlets，Hope to achieve mutual promotion between the company’s commercial real estate and tourism projects、Comprehensive development。In addition，Xi’an Tourism reached an agreement with Hangzhou Saishi Garden Group，Joint development and construction of Weishui Garden Huacai Town Project，The total project area is about 688 acres，Taking the flower culture of the ancient city of Chang'an as its connotation，Aims to leverage the market with high-end flower tourism products。Xi’an tourism name，If the cooperation between both parties is successful，Will fill the gap in regional high-end flower tourism products 188bet online sports betting through Weishuiyuan Company，Will bring good industrial linkage and demonstration effect。Choose these two investments outside of the travel agency and hotel business，Can only be regarded as a preliminary attempt to develop Xi'an tourism transformation tourism project。

*Author of this article: Chen Ju (personal WeChat: cham_ch)，Zhi Hui Reporter，Welcome to follow and communicate！

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