This means that Xiangyuan Holdings, China's largest investor and operator of mountain scenic areas, and Haichang Ocean Park, China's largest operator of ocean-themed parks, will be combined. This is the most significant change in the field of listed cultural tourism companies in China since the beginning of this century. This will not only have a huge impact on both parties, but will also profoundly affect the future development of China's cultural tourism industry. Next, the author will reveal the significance of this "century transaction" through a series of questions and answers. “Century Transaction”

Why is this transaction the most significant change for listed cultural tourism companies in China this century?

Answer: First, Xiangyuan Holdings has been 7 consecutively years rated as a "Strong Chinese Tourism Group". 20 Haichang Ocean Park has also 11 been rated as a "Strong Chinese Tourism Group". 20 Now, two "Strong Chinese Tourism Groups" have come together, which has never happened before. 20 Second, Xiangyuan Holdings'

A share listed company Xiangyuan Culture and Tourism (600576.SH) market capitalization hundreds of millions of yuan ( 107 month 6 day) 2 ，the Hong Kong-listed company Haichang Ocean Park ( ) also has a market capitalization in the hundreds of millions of yuan. Due to debt problems in the past year, expectations have been weak, and its market capitalization has fallen to 02255.HK 。Xiangyuan Holdings will simultaneously control two cultural tourism listed companies with a market capitalization of hundreds of millions of yuan, which has never happened before. 74 month 6 day) 2 ，the Hong Kong-listed company Haichang Ocean Park ( Xiangyuan Holdings also has an infrastructure construction listed company

Jiaojian Shares (603815.SH) At that time, it will have as many as three listed companies, owning ， A-shares and Hong Kong stocks, two major financing windows. share listed company Third, Xiangyuan Holdings is the

“King of Mountains” in China's cultural tourism industry, with numerous mountain-type scenic areas and resort projects, including Qiyun Mountain, Huangshan Mountain, Zhangjiajie, Danxia Mountain, Bifengxia, Mangshan, and Wolong Shenshuping. Haichang Ocean Park is China's number one and the world's number two (by market capitalization) operator of ocean-themed parks, known as the "Ocean Overlord." It operates ocean-themed park projects in Shanghai, Dalian, and Sanya, and is preparing several new projects in Beijing, Fuzhou, and Saudi Arabia in the form of light asset output. The two overlords in different sectors of cultural tourism are now, or will soon be, joining forces, which is unprecedented in the history of tourism development in China. 7 Shanghai Haichang Ocean Park Image source: Haichang Ocean Park official website

Why did Haichang Ocean Park's original controlling shareholder give up its controlling stake?

In fact, Haichang Ocean Park's products, brands, and team are all very high-quality. Before the COVID-19 pandemic, Haichang Ocean Park successively invested in several large projects in Shanghai, Sanya, and other places. However, the three years of the pandemic brought huge debt pressure. This time, Xiangyuan Holdings invested

Answer: hundreds of millions of Hong Kong dollars in Haichang Ocean Park through capital increase and share expansion, which will greatly alleviate its debt problems and help it lighten its load. 22.95 Why did Haichang Ocean Park choose Xiangyuan Holdings?

Haichang Ocean Park's assets are very attractive. As far as I understand, there were many players involved in this acquisition. Haichang Ocean Park's final choice of Xiangyuan Holdings was made after careful consideration. The most important reason is that Xiangyuan Holdings has both the willingness and the ability to manage cultural tourism businesses, including theme parks. Xiangyuan Holdings entered the cultural tourism field

Answer: years ago and has always maintained a firm and pragmatic attitude of accumulating strength, accumulating "investment, research, construction, and operation" four-in-one full-chain capabilities. Now, these accumulations are bearing fruit, and the cultural tourism industry generally recognizes Xiangyuan Holdings' capabilities and model. 17 Qiyun Mountain Eco-cultural Tourism Resort Image source: Xiangyuan Holdings official website

Therefore, entrusting the future of Haichang Ocean Park to Xiangyuan Holdings is a suitable choice.

Will Xiangyuan Holdings' cross-border investment be too large a leap, and can effective integration be achieved?

Previously, the industry's understanding of Xiangyuan Holdings was that it invested in natural resource-type scenic areas. This investment in ocean-themed parks does have a cross-border element. However, in reality, there are not many obstacles to integration between the two. Xiangyuan Holdings'

Answer: integrated "investment, research, construction, and operation" capabilities focus on grasping changes in the demand of the cultural tourism market, winning the trust of tourists with high-quality experiences and services, rather than sticking to a specific product type. Just like Xiaomi, it sells mobile phones, makes cars, and has air conditioners, televisions, and various other products. The basis of these businesses is Xiaomi's insight into user needs and users' trust in Xiaomi. “One method works, all methods work.” Xiangyuan Holdings also never limits itself to the label of natural resource scenic areas. In addition to mountain scenic areas, it also has Bifengxia Wildlife World, and the Bifengxia Giant Panda Base and Wolong Shenshuping Giant Panda Base, which are centered on panda culture, have something in common with Haichang's marine animal theme; Xiangyuan Holdings' cultural tourism sector also includes Phoenix Ancient City, Xiangyuan Flower World, and ecological parks, covering various projects such as leisure parks, cultural experiences, and high-end resorts. Therefore, Xiangyuan Holdings has the experience and ability to manage and operate various cultural tourism projects.

“一法通，万法通”，祥源控股也从不局限在自然资源景区的标签上。旗下除了山岳景区，还有碧峰峡的野生动物世界，以及围绕大熊猫文化的碧峰峡大熊猫基地和卧龙神树坪大熊猫基地，和海昌的海洋动物主题有共通之处；祥源控股的文旅板块还有凤凰古城、祥源花世界、生态乐园等，涵盖休闲乐园、文化体验、高端度假等各类项目。所以，祥源控股有管理经营好各类文旅项目的经验和能力。

Giant pandas and orcas belong to the animal theme. Image source: Xiangyuan Holdings official website

Xiangyuan Holdings' investment and acquisition of tourism projects is not simply a financial investment, but rather infusing its own “investment, research, construction, and operation” capabilities into them, enabling the projects to reach a new level of development. This has been fully verified in the upgrading and transformation of projects such as Qiyun Mountain, Fenghuang Ancient City, Bifengxia, Huanglong Cave, and Danxia Mountain.

From Xiangyuan Holdings' perspective, why invest in Haichang Ocean Park?

Answer: The stage for the two companies to join forces is vast, with immense potential.

Xiangyuan Holdings and Haichang Ocean Park are highly complementary. Xiangyuan's natural scenic areas and cultural heritage ， complement Haichang's marine culture and theme parks; Xiangyuan's scenic areas are distributed across the three major international areas of Greater Xiangxi, Greater Huangshan, and Greater Nanling tourism destinations, as well as the Yangtze River Delta, South China, and North China regions ， and Haichang's key layout in the Bohai Rim, Yangtze River Delta, Central China, and Chengdu-Chongqing economic zones ， forming a complementary regional layout; Xiangyuan and Haichang each have tens of millions of annual tourists, After the merger, the two will form a potential user pool of hundreds of millions, covering all age groups and multiple consumption scenarios, and provide a natural traffic entry point for the user growth of the “Xiangyuan Travel” online platform ； In terms of business model, Haichang has launched light asset project cooperation with governments in Beijing, Fuzhou, Ningbo, and other places and actively exploring overseas expansion to Saudi Arabia, This is in line with Xiangyuan's domestic 50+ international 50 tourism destination layout” strategy and moving in the same direction. ， Haichang's marine culture IP can also feed back Xiangyuan's “cultural IP+ tourism + technology” characteristic industrial model.

Xiangyuan Fenghuang Ancient City in Hunan. Image source: Xiangyuan Holdings official website

It can be said that the combination of Xiangyuan Holdings and Haichang Ocean Park will achieve 1+1 far greater than 2 the effect.

Is Xiangyuan Holdings worried about capital chain pressure with such a large investment?

Answer: On the one hand, to C tourism projects are cash cow businesses. As long as the products are good and passenger flow continues to grow, there will be a continuous stream of cash flow. Haichang Ocean Park itself has no operational problems and has good cash flow, but it is temporarily unable to extricate itself due to debt problems. Xiangyuan Holdings helps alleviate debt problems, and it is expected to achieve financial balance through its own blood-building capabilities in the future. On the other hand, Xiangyuan Holdings has always maintained a stable style, has sufficient consideration and prevention of potential risks, and is adept at using diverse financing methods to reduce financing costs. It is understood that in this transaction, Xiangyuan Holdings, as an industrial investor, leads the entire project, and jointly participates with Shengzhou Tourism Group and other parties.

Therefore, this transaction will not create excessive financial pressure. Moreover, due to the good prospects of the tourism industry and the government's strong support for tourism and consumption promotion, local tourism groups etc. actively participated in this transaction, showing full confidence in Xiangyuan Holdings' acquisition of Haichang Ocean Park.

What impact will this transaction have on Xiangyuan Holdings' international development?

Answer: At the capital market level, Xiangyuan Holdings will form “ A+H ” dual capital market platform, attracting more international investors' attention, and also using the Hong Kong stock market platform to continuously build an international brand. At the specific business level, Haichang Ocean Park is expanding its international business, and has launched the Saudi Haichang Ocean Park project in Saudi Arabia. Xiangyuan Holdings also proposes “domestic 50+ international 50” tourism destinations construction and operation vision, and the increase in capital investment in Haichang Ocean Park is a great help to Xiangyuan Holdings' construction and operation of overseas tourism destinations.

What impact will Xiangyuan's transaction have on the pattern of the tourism industry?

Answer: The impact is enormous. The current urgent goal of China's tourism industry is to create a number of world-class scenic areas and resorts. To achieve this goal, world-class tourism enterprises are needed.

Sanya Haichang Dream Ocean Night City. Image source: Haichang Ocean Park official website

Xiangyuan Holdings and Haichang Ocean Park are both “Chinese tourism groups 20 One is "strong," one is "King of the Mountains," and the other is "Ocean Hegemon." Both complement and empower each other, with synergistic project layouts and customer coverage. Xiangyuan Holdings values Haichang Ocean Park's products, brand, and future prospects, while Haichang Ocean Park recognizes Xiangyuan Holdings' "investment, research, construction, and operation" capabilities, as well as its sincere, pragmatic, and persistent commitment to the tourism industry. This collaboration creates conditions for the birth of a world-class tourism enterprise in China. In due course, the full integration of both parties' capabilities and businesses will create even more extreme tourism projects and products, building world-class scenic areas and resorts for domestic and foreign tourists, and also allowing Chinese tourism enterprises to compete in the international tourism market.