Shanxi Tourism Approved for 15.55 Billion Yuan IPO on Shanghai Exchange

Shanxi Tourism Culture Industry Co., Ltd. (Shanxi Tourism) has received approval for its initial public offering (IPO) on the Shanghai Stock Exchange's main board. The company, which integrates tourism performances, cable cars, and tourism catering, aims to raise 15.55 billion yuan through this offering. The underwriter for the IPO is CITIC Securities.

Shanxi Tourism's business model is centered around leveraging high-quality tourism resources such as the Huaqing Palace and Mount Hua. The company offers a range of services, including tourism performances, cable car operations, and catering. Its portfolio includes notable works such as the large-scale historical dance drama "The Long Song," the large-scale live-action film "The Xi'an Incident of December 12," and the large-scale red-themed live performance "Railway Guerrilla War." These performances serve as a platform for the transmission of Chinese history and traditional culture. In the cable car business, the company operates the West Peak Cable Car and the Huawei Slideway in the Mount Hua Scenic Area, both of which are equipped with world-class cable car construction technology and leading domestic operational capabilities. In the tourism catering sector, the company's Tangyuan Palace, a theater-style restaurant, is known for its "Tang Dynasty Music and Dance + Imperial Banquet" operating model and is a significant window for promoting Shaanxi's culture to the world, earning it the nickname "Oriental Moulin Rouge."

Shanxi Tourism has seen significant financial growth in recent years. In 2022, 2023, and 2024, the company reported revenues of approximately 2.24 billion yuan, 10.71 billion yuan, and 12.45 billion yuan, respectively. During the same periods, the company's net profits were approximately -1.05 billion yuan, 5.20 billion yuan, and 6.12 billion yuan, respectively.

The company acknowledges the intense market competition it faces. As China's residents' incomes rise and the country achieves a comprehensive well-off society, the tourism industry continues to grow in scale and investment. With various governments emphasizing tourism and cultural industries, and enhancing tourism environments, innovative tourism and cultural products are emerging rapidly. Tourism destination companies are expanding and improving their efficiency, attracting more tourists through increased visitor capacity, resource integration, and local consumption incentives. This intensifies competition among regions and different tourism products within the same region. If Shanxi Tourism cannot maintain its product competitiveness in this increasingly competitive environment, it may face risks such as declining visitor numbers and reduced profitability.