Company Profile: China Travel Union was founded in Nanjing in 1998 and listed on the Shanghai Stock Exchange in September 2000. The company began to determine the main business direction of hot springs, leisure and vacation tours in 2006, and gradually cleaned up some non-hot spring assets. Currently, it covers two main businesses, mainly hot spring resorts and high-end clubs, forming the two core brands of “Yishang Hot Spring” and “Summer Club”. Nanjing Tangshan Yishang Hot Spring, owned by the company, is a famous hot spring resort and leisure resort in China. The profitability of the company's main business is poor, and the growth potential of the hot spring business in recent years has also gradually faced the problem of insufficient growth. Affected by the policy of restricting the consumption of public funds, the business of high-end clubs has been put under severe pressure. In the past 13 accounting years, four years have recorded losses. In 2014, the company recorded the largest loss of 166 million yuan in history due to debt impairment and investment depreciation due to ongoing restructuring plans. In 2015, the company successfully turned profit and realized a profit of more than 12.7 million yuan. The controlling shareholder changed hands, and the business restructuring began. In 2014, the company completed the change of control through the sale of shares by major shareholders, and the company's holdings were changed from China Travel Group to a private construction enterprise, with a shareholding ratio of 31.4%. Contemporary major industries in Xiamen cover diverse fields such as real estate, finance, and cultural media. The future development strategy of the China Travel Federation will be restructured from a single tourism business to a multi-wheel drive for cultural, sports, and leisure tourism. We believe that the clarity of the company's control and the entry of new management levels are beneficial to improving the corporate governance structure and improving operational efficiency, and that strategic transformation of new business has opened the door for the company's future growth. Investment proposal: The project is still in the cultivation period. It has not been rated for the time being. In terms of the sports industry, the company won the right to develop at the 13th Winter Games in China, and through investing in Muay Thai projects, set up industry and purchasing funds to invest in new sports companies such as Yingbo News and Harin Xiuwang to set up the sports industry ecosystem. Currently, China's sports industry is in its infancy. We expect the market space to expand at least tenfold in the next ten years compared to 2014. In the cultural industry, the company signed a partnership with the performance and cultural tourism development company Shanshui Festival to invest in virtual reality hardware and content provider Rongzhi Xunda to enter the culture and entertainment industry. The cultural and sports industry is supported by national policies and market enthusiasm continues to rise. We are optimistic about the company's new strategic focus, and the development prospects are worth looking forward to, but 1) the company's asset integration is still in progress, and it is still unclear what kind of assets the major shareholders will inject in the future 2) Currently, the company is still actively preparing new products and developing new projects, and it is difficult to quickly reflect on the performance in the short term. We have not rated the company for a while, and keep following up and following the company. (Current prices as of March 4)