Matters: The company announced that the application for non-public offering has been reviewed and approved by the Development and Review Committee of the Securities Regulatory Commission. No written approval documents have been received so far. Key points 1. The non-public offering has passed the review, and the fund-raising project will help the company develop the company in the future. The non-public offering application has been reviewed and approved by the Development and Review Committee of the Securities Regulatory Commission. No written approval documents have yet been received. The fund-raising project helps the company develop in the future. The company plans to raise 1 billion dollars to invest in the Yangtze River Three Gorges Cruise Center and Yichang East Railway Station Logistics Center project. 1) The first-level land development project for the Yangtze River Three Gorges Cruise Center is the first stage of the Yangtze River Three Gorges Cruise Center project. On the one hand, it can guarantee the priority arrangement and implementation of the Three Gorges Cruise Center terminal site in which the company has participated, and on the other hand, reduce construction costs for subsequent projects and gain a first-mover advantage in subsequent development. 2) Yichang East Railway Station Logistics Center Project. The project will build multimodal transportation through modern supply chain concepts, modern logistics technology, IoT cloud computing, etc., to provide complete infrastructure for e-commerce express delivery and logistics services. 3) The four major state-owned investment and financing platforms in Yichang each subscribed for 100 million yuan, for a total of 400 million yuan. (Jiao Travel Group, Yichang City Investment, Yichang Hi-Tech Investment, and Yichang State Investment, of which Yichang Travel Group is a major shareholder of the company) 2. The performance report revealed that the company's revenue increased rapidly. The company's 2016 performance report revealed that the company achieved operating income of 1,849 billion yuan, an increase of 22.82%; net profit of 51.4581 million yuan, an increase of 7.62% over the previous year, mainly due to a) the rapid growth in the scale of automobile sales business; b) the basic implementation of “scaling, networking and branding” in the road passenger transport industry, further deepened integration of website operators, and road passenger transport revenue and extended service revenue increased year on year; c) The launch of new travel products brought growth to the company. 3. The unique Three Gorges Gateway, with the majority shareholders carrying the mission of leading the development of the 100 billion cultural tourism industry 1) Tourism has become a pillar industry in Hubei Province, and Yichang, as the gateway to the Three Gorges, is one of the centers of tourism development in Hubei. Yichang City and surrounding areas have created a world-famous hydropower themed resort integrating hydropower tourism, landscape tours, cultural experiences, and ecological vacations. In the first half of 2016, the Yichang region received 31 million visitors, a year-on-year increase of 24%, and achieved revenue of 30 billion yuan, an increase of 31% over the previous year. 2) The majority shareholder Jiaotong Travel Group owns 10 subsidiaries including Yichang Transportation, Yichang Bus, and Three Gorges Tourist Resort. The Yichang Municipal Government regards the Three Gorges Tourism Zone as a new engine for the green development of Yichang. The Group's goal and vision is to contribute to the construction of the Three Gorges New Tourism Zone, lead the development of the 100 billion cultural tourism industry, and build a leading transportation and tourism enterprise with a market value of over 10 billion dollars and an investment of over 10 billion dollars. In October 2016, the Group signed a cooperation agreement with Changzhou Dinosaur Park to build Yichang's first theme park. 4. Investment advice: Be optimistic about the company's transformation journey and emphasize the “recommendation” rating 1) Does not consider non-public offerings. In 2016-2018, the company's net attributable profit was 0.51, 0.64, and 83 million yuan respectively, corresponding to EPS of 0.38, 0.48 and 0.62 yuan, respectively, corresponding to current PE of 62, 50 and 38 times, respectively. 2) After considering non-public distribution, the fully diluted EPS in 2016-18 was 0.28, 0.34, and 0.45 yuan, and the corresponding PE was 86, 69, and 53 times, respectively. 3) The company's attitude towards transforming tourism is clear, and as the only listing platform under the Yichang Communications Travel Group, it is expected to further expand tourism resources. At the same time, it is also expected to introduce strategic investors and strengthen alliances through this non-public offering. Emphasize “recommended” ratings. Risk points: The expansion of the tourism business fell short of expectations, and the economy declined sharply.