Recently, the company announced its annual results for 2015. In 2015, the company achieved total operating income of 152 million yuan, a year-on-year decrease of 4.98%, net profit attributable to shareholders of listed companies of 5.355 million yuan, turning a year-on-year loss into a profit, net profit after deducting non-recurring profit and loss of -62.516 million yuan, and losses continued to expand. The main business continues to lose money: The company is the only listed tourism company in the Tibet Autonomous Region. It is rich in scenic resources. It has famous scenic spots in the region such as the Brahmaputra Grand Canyon Scenic Area, Mount Benjishen (Niyang River Scenic Belt) Scenic Area, Basuntso Scenic Area, Lulang Flower Sea Ranch (Lulang Wuzhai) Scenic Area, and Alishen Mountain Sacred Lake Scenic Area, with obvious regional competitive advantages. However, due to the “two limits and one warning” caused by a major traffic accident in '14, and the impact of the earthquake in Nepal in April 2015, which affected Zhangmu Port, an important channel for inbound visitors to the company's Ali Scenic Area, the company's Ali Scenic Area revenue was quite different from expectations. Although the company's Grand Canyon Scenic Area revenue increased 15.35% to 79.03 million yuan, the revenue of other scenic spots declined to varying degrees, thus the company's tourist attraction business revenue fell 2.25% to 99.023 million yuan compared to last year, and the gross profit reached 556.115 million yuan, an increase of 6.9 per cent over the previous year; Due to the impact of traffic accidents and the impact of the “two limits and one warning” policy, the revenue from the travel service business declined markedly. The company's losses in the travel service business increased through the accounting of accident losses and fixed asset depreciation accrued due to the successive completion of the company's hotels. The company's operating profit for 15 years was -42.997 million yuan. Asset divestment and debt restructuring reversed the company's loss performance: During the reporting period, the company concentrated on developing the company's main tourism business, and the company's advertising agency business revenue declined year by year, so the company sold Guofeng Advertising, a holding subsidiary of the company, for 139 million yuan, accruing 20 million yuan as investment income; furthermore, the company completed major debt restructuring, eliminated 42.3 million yuan of bad loans left over from the company's history, and enabled the company to obtain more than 50 million yuan in debt restructuring income, thus making up for the company's 15-year operating losses. The period fee rate is at an all-time high: The company's 15-year expense rate reached an all-time high of 74.32%. Among them, the company's sales expenses increased 63.83% year-on-year to 22.15 million yuan due to the increase in marketing rebates and depreciation and amortization expenses, and the sales expense ratio increased by 6.12 percentage points to 14.57% over the previous year; remuneration and benefits and amortization of fixed assets were the main factors in the increase in the company's management expenses, which reached 45.43%; the company's financial expenses increased 132.12% over last year. The main reason for this was the cessation of capitalization of interest on construction projects. The financial expenses rate increased 8.46 percentage points from 5.86% last year. Investment suggestions: As a leading regional tourism enterprise, the company has abundant resources. In 2015, the company has actively solved problems left over from history and handled non-performing loans, which has enabled the company to improve the company's credit rating. This will bring good help to the company's future operations. Currently, the main business is clear, and it is expected that the performance will be improved by the recovery in passenger flow in the future. Currently, considering that the company is still in a period of suspension of major assets, the company's 2016-2018 EPS is expected to be -0.02 yuan, 0.01 yuan, and 0.04 yuan respectively, and the corresponding PE is 834X, -1384X, and 3451X respectively. Since the company plans to repay bank loans and supplement liquidity after 15 years, controlling shareholders participated in the fixed increase subscription by 45%, boosting investor confidence, so we gave it a “prudent recommendation” rating for the first time. Risk warning: the number of tourists recovering falls short of expectations; major traffic accidents; the continuation of the “two limits and one police” policy, etc.