At the end of the year and the beginning of the year, the news that Shaanxi tourism and Cultural Industry Co., Ltd. (hereinafter referred to as “Shaanxi tourism”) applied for listing on the main board once again aroused market concern. The reporter of China business daily learned that Shaanxi tourism is a holding subsidiary of Shaanxi Tourism Group Co., Ltd. (hereinafter referred to as “Shaanxi Tourism Group”), and its main products are Huashan Xifeng cableway operated by Shaanxi Taihua tourism cableway Road Co., Ltd. (hereinafter referred to as “Taihua cableway company”) and Shaanxi Changhengge Performing Culture Co., Ltd. (hereinafter referred to as “Shaanxi Changhengge Performing Culture Co., Ltd.”)“ Changhengge Performing Arts Co., Ltd.) is a live action historical dance drama “Changhengge”, whose two businesses account for more than 80% of the company’s revenue share. < / P > < p > and Huashan Xifeng cableway, as the main income source of Shaanxi tourism, was built without land use right, and just got land use right after many years of operation. Behind it is the interest game between Shaanxi tourism group, Weinan City and Huayin City Government. < / P > < p > Shaanxi tourism was listed on the new third board on January 16, 2017. The controlling shareholder of the company is Shaanxi tourism group, which directly holds 47.59% of the company’s shares, and Shaanxi SASAC is the actual controller of the company. However, in 2020, Shaanxi tourism equity has changed a lot. < / P > < p > Shaanxi tourism, formerly known as Shaanxi tourism architecture planning and Design Institute, is subordinate to Shaanxi Provincial Tourism Bureau. In 2004, Shaanxi Provincial Tourism Bureau transferred it to Shaanxi Tourism Group for management. After that, it also experienced complex historical evolution, such as capital increase, equity replacement, restructuring and so on. As a result, the company has changed its name many times, and the most recent one was Shaanxi Provincial Tourism Design Institute limited company. < / P > < p > among them, the most important change occurred in 2016. In June 2016, Shaanxi Tourism Design Institute Co., Ltd. absorbed and merged Shaanxi tourism and Cultural Industry Development Co., Ltd., and its main business changed greatly. Before the merger, the company’s main business is tourism planning, design and management. After the merger, the company’s main business is tourism industry operation with Tourism Performing Arts, tourism cableway and passenger transport, tourism catering, tourism planning, design and management as the core. < / P > < p > Shaanxi tourism was listed on the new third board on January 16, 2017. The controlling shareholder of the company is Shaanxi tourism group, which directly holds 47.59% of the company’s shares, and Shaanxi SASAC is the actual controller of the company. However, in 2020, Shaanxi tourism equity has changed a lot. CITIC mezzanine (Shanghai) Investment Center (limited partnership), the second largest shareholder of the company, originally holding 45.1% of the shares, transferred the shares to Ningbo Fengwen equity investment fund partnership (limited partnership), Hangzhou Guoting equity investment fund partnership (limited partnership) and Chengdu chuanshang No.2 equity investment fund center (limited partnership) twice. At present, the three companies are the second, third and fourth largest shareholders of Shaanxi tourism. Relevant data show that Ningbo Fengwen equity investment fund partnership (limited partnership) and Hangzhou Guoting equity investment fund partnership (limited partnership) are two funds actually controlled by Ping An Group, and the actual controller of Chengdu chuanshang No.2 equity investment fund center (limited partnership) is Liu Yonghao. As a result, their action of taking over the shares was also regarded as Ma Mingzhe and Liu Yonghao’s “share” in Shaanxi tourism. < / P > < p > in fact, in 2017, when Shaanxi tourism was listed on the new third board for less than half a year, it planned to transfer the board IPO in full swing. In July of that year, it submitted the listing guidance filing materials to Shaanxi securities regulatory bureau and accepted the listing guidance of Huajing Securities Co., Ltd. But then there was no more progress. < / P > < p > Shaanxi tourism relies heavily on Huashan Xifeng cableway and the interpretation of “everlasting regret song”. In the future, once the growth rate of the two core projects slows down, its business performance is likely to stagnate. < / P > < p > affected by the epidemic situation, the performance of Shaanxi tourism will also drop precipitously in the first half of 2020. In the first half of 2020, the company realized an operating revenue of 55.5501 million yuan, a year-on-year decrease of 78.84%; the net profit attributable to the parent company was – 35.1717 million yuan, a year-on-year decrease of 156.21%. < / P > < p > in the revenue pattern of Shaanxi tourism, Huashan Xifeng cableway operated by Taihua cableway company and the live historical dance drama Changhengge operated by Changhengge performing arts company are the main revenue sources of the company. < / P > < p > in 2017, 2018 and 2019, the operating revenue of Changhengge performing arts company was 139 million yuan, 189 million yuan and 220 million yuan respectively, accounting for 28.42%, 33.34% and 34.7% of the total operating revenue; the operating revenue of Taihua cableway company was 290 million yuan, 320 million yuan and 356 million yuan respectively, accounting for 58.7%, 56.59% and 55.78% of the total operating revenue. It can be seen that Shaanxi tourism relies heavily on Huashan Xifeng cableway and the interpretation of Changhengge. In the future, once the growth of the two core projects slows down, its business performance is likely to stagnate. < / P > < p > not only that, the above two businesses have obvious seasonality. Huashan Scenic Spot, where Xifeng cableway is located, often snows in winter, and the number of tourists is significantly less than that in summer. Song of everlasting regret is performed outdoors from April to October every year. As far as the overall tourism market of Shaanxi is concerned, the competitive pressure of Shaanxi tourism is also very heavy. In Huashan Scenic Area, Beifeng cableway operated by Wuhan Sante cableway Group Co., Ltd. shares the market share with Shaanxi tourism. In terms of Tourism Performing Arts, in recent years, Xi’an has ushered in a new wave of outbreaks, and has successively developed “dream back to the Tang Dynasty” in the Tang Furong garden, “Legend of Camel Bells” and “eternal love of Xi’an” near the Expo Garden in Ba District. According to incomplete statistics, there are at least 13 Tourism Performing Arts Works in Xi’an at present. < p > < p > in order to expand business, in recent years, Shaanxi tourism has also tried to “search for tourism resources nationwide and copy core tourism products in other provinces and cities”. < p > < p > in September 2019, Shaanxi tourism announced that it plans to cooperate with the Management Committee of Shandong Tai’an Tourism Economic Development Zone to build an immersive theme cultural interactive experience project “Tai’an xiudu” covering an area of about 350 mu. In September of the same year, Shaanxi tourism (Tai’an) Cultural Tourism Co., Ltd., a new subsidiary of Shaanxi tourism, was established in Tai’an. The company is 100% owned by Shaanxi tourism with a registered capital of 10 million yuan. However, the project is still under construction. < / P > < p > at the beginning of the development and construction of Huashan Xifeng cableway, Huayin municipal government, Weinan municipal government and Shaanxi tourism group had many disputes on the equity ratio of the project company. < / P > < p > Taihua cableway company, which accounts for half of Shaanxi’s tourism performance, mainly deals with the operation of Huashan Xifeng cableway and the maintenance and management of wengyu highway. Huashan Xifeng cableway was put into operation in April 2013. It is the first single track circulating detachable cableway in the world, which adopts cliff excavation chamber station building, undulating trend and intermediate station. < / P > < p > it is worth noting that the construction of Huashan Xifeng cableway started without land use certificate, and it has been unable to apply for land use certificate for many years. In 2017, when the new third board was listed, Shaanxi tourism admitted that the actual land use area of Huashan Xifeng cableway and affiliated wengyu highway was 270 mu, and it has not yet obtained the state-owned land use certificate. < / P > < p > at that time, Shaanxi tourism disclosed that Taihua cableway company and Huayin Bureau of land and resources signed a land acquisition agreement and paid off the corresponding compensation for the construction project, but Huayin municipal government has not signed a land transfer contract with Taihua cableway company at present, and Taihua cableway company cannot obtain the ownership certificate of the land used in the project. < p > < p > the reporter learned that at the beginning of the development and construction of Huashan Xifeng cableway, Huayin municipal government, Weinan municipal government and Shaanxi tourism group had many disputes on the equity ratio of the project company. < p > < p > Huayin City believes that in the project, the cost of resources and other costs paid by the local government is not symmetrical with the proportion of equity, which seriously affects the enthusiasm of the local government to build the west line cableway. < p > < p > at that time, Weinan Municipal People’s Congress proposed that the construction of the project, on the one hand, occupied the land, tourism and other resources of Huayin City; on the other hand, reduced the vested interests of Huayin City. The completion and operation of the project will have a certain impact on the operation of the East Huashan line cableway. The number of tourists on the East Huashan line cableway will decrease, and the income will decline to a certain extent, which will seriously affect the benefit sharing of Huayin City in the East Huashan line cableway. The third is that the limited construction land index of Huayin City is occupied. The fourth is that the coordination of land acquisition and demolition in the project construction is difficult, Huayin City needs to invest certain human and material resources. Therefore, it is suggested that Shaanxi tourism group should hold 60% equity of Taihua cableway company, Weinan municipal government and Huayin municipal government should hold 12% and 28% equity respectively. < / P > < p > however, Shaanxi tourism group does not approve, and still insists that the Western Line cableway project company is controlled by Shaanxi tourism group, accounting for 65%, and Weinan City for 35%; wengyu tourism highway project company is controlled by Weinan City, accounting for 65%, and Shaanxi Tourism group for 35%. < / P > < p > in the negotiation, Shaanxi tourism group also proposed that Weinan should agree that Shaanxi Tourism Group has the right to transfer its 65% equity of Taihua cableway company and 35% equity of wengyu tourist road to any third party at any time from the date of cooperation. Weinan City believes that this means that Weinan is required to give up the preemptive right granted by the company law, which is contrary to the company law. Therefore, Weinan City did not accept it, resulting in the shelving of the equity ratio negotiation again. < / P > < p > in June 2008, Shaanxi Taihua tourism ropeway highway Co., Ltd. was unilaterally registered by Shaanxi tourism group, and the construction of Huashan wengyu ropeway and highway project was started one after another. < p > < p > it was not until April 2012, under the coordination of relevant provincial leaders, that the joint-stock cooperation of Huashan west line cableway and wengyu tourism highway project company was determined. The Western Line cableway project company is controlled by Shaanxi tourism group, accounting for 65% of the shares, and Weinan City accounts for 35%; wengyu tourism highway project company is controlled by Weinan City, accounting for 65% of the shares, and Shaanxi tourism group accounts for 35%. < / P > < p > at present, it is not sure whether the long-term failure of Huashan Xifeng cableway to apply for land use certificate is related to the equity proportion dispute of the project company, but for Weinan City, the final equity proportion structure has not achieved the original purpose. < / P > < p > however, at present, the equity structure of Taihua cableway company is 51% owned by Shaanxi tourism, 30% owned by Shaanxi Huashan Tourism Group Co., Ltd., and 19% owned by Shaanxi coal chemical industry group Co., Ltd. However, the lack of land ownership certificate for the west line of Taihua cableway will not be solved until the first half of 2020. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.