Core view: 1. Huatian Hotel (000428.CH/RMB 9.88, no rating) The hotel business continues to be under pressure. By selling assets to make up for losses, the real estate business will focus on eliminating inventory in the future. The domestic hotel industry was generally sluggish after the restrictions on consumption. The company's high-end hotel business continued to decline. Currently, it mainly makes up for losses through asset-light operation methods of sale and leaseback. Currently, the company has assets of more than 10 billion dollars, and will continue to use the after-sales leaseback method to achieve benefits in the future. The company will continue to stick to the main hotel business while experimenting with transformation, such as subleasing some hotel floors as shops and clubs, building an internet sales platform with other hotel alliances, etc. The main task of the company's real estate business next year is to remove inventory, and the amount of new commercial housing and supporting businesses will be greatly reduced. 2. Set up a nursing center based on a hotel, train professional old-age service personnel, and build a high-end pension management company. The company's pension project is to build a flagship pension center based on the Haitang Hot Spring Resort. The essential difference from other pension programs is that the company does not need to build new guest rooms, but instead rents out some rooms to pension companies on the basis of existing hotels. After minor improvements, it has become a high-end pension program. Currently, the company is training to build a professional pension service team. Huatian manages and owns a total of 90 hotels. In the future, it may become a chain business, asset-light pension management company, and can also revitalize existing hotel assets. 3. The management assessment did not focus on market value, and Huaxin Hengyuan, a mixed reform introduced into a new energy private enterprise. Currently, the Hunan State-owned Assets Administration Commission mainly assesses the management of state-owned enterprises based on revenue and profit; there is no market value index. After the introduction of the battle investment, Huaxin Hengyuan and Huatian Group, the majority shareholder, had a difference of only 3 percentage points in terms of shareholding ratio. As a private enterprise in the field of new energy, Hengyuan is also very optimistic and attaches great importance to Huatian's pension industry, and will complement and collaborate with Huatian's state-owned enterprise background in the future. 4. Investment advice: As a leader in the hotel industry in Hunan Province, the company uses hotel assets to try to transform high-end pension projects, which can not only find new performance growth points but also revitalize hotel industry assets. This mixed reform introduced strategic investor Huaxin Hengyuan, adding room for imagination to the company's subsequent pension project expansion and deeper cooperation with the fighting investor Zhongke Hengyuan, and investors are advised to focus on it.