On the evening of January 9, the company issued an announcement deciding to terminate the public issuance of convertible corporate bonds and apply to the China Securities Regulatory Commission to withdraw the application documents for convertible bonds. A brief review of the end of convertible bond financing. The main purpose of issuing convertible bonds by companies with less impact on the company is to raise 610 million yuan in capital for the Dayong Ancient City project. Dayong Ancient City is a transformation project built by Zhangjiajie. It is also a key global tourism project in Zhangjiajie City, with an investment scale of 2,210 billion yuan. The ancient city of Dayong plans to build entertainment and leisure places such as theaters, 5D cinemas, flying cinemas, eight sights of the ancient city, shops, inns, and hotels, etc., and will eventually be built into a high-end tourism and leisure area integrating “food, lodging, travel, shopping, and entertainment”. Judging from the construction progress, by the end of August 2018, the company had completed the feasibility study, filing and EIA work of the project, and obtained the corresponding land use rights. At the same time, the main construction project of the fund-raising project has also been basically completed, while work such as renovation work, equipment procurement and installation, personnel recruitment and training is also ongoing, and subsequent investment pressure is limited. The performance of the operating side is steady, and the financial pressure on the company is expected to ease from many aspects. Due to the relatively good cash flow situation of tourism companies, good business performance is expected to raise the level of the company's own capital. The company's passenger flow has shown a good growth trend around Q3. In the first three quarters, Baofeng Lake achieved 608,700 ticket buyers, an increase of 12.72% over the previous year; Shili Gallery achieved 996,600 ticket purchasers, an increase of 10.56% over the previous year; and the number of ticket purchasers for environmentally friendly passenger transport remained stable. During the recent New Year's Day, the flow of visitors was affected by snow and ice. The core scenic area of Wulingyuan reached 8,456 visitors at one time, and Baofeng Lake received 1,392 visitors. State-owned enterprises are expected to receive policy support. The company is the only listed company in Zhangjiajie, and has the nature of a state-owned stock, and the local government has strong support for the company. At the same time, the Dayong Ancient City project is also of great significance to the local community in Zhangjiajie. It is an important implementation link in Zhangjiajie City's strategy of “improving quality against standards and a strong tourism city”, the “international boutique tourist city” construction goal, and the “11567” overall development plan. It is expected that the project will receive government support and reduce the pressure on listed companies. Transportation continues to improve, and the railway network for collaborative tourism development in Zhangjiajie is being actively built. The Qianzhangchang Railway, which is expected to be completed in 2019, will become a fast passenger and freight channel connecting Chengdu and Chongqing to central China, which can greatly improve the convenience of visitors from Chongqing, Changsha and other places to visit the company's scenic spots. In addition, the Zhangjihuai high-speed railway and highway network, which were completed and opened to traffic in 2021, are also expected to further improve traffic conditions in the scenic area. Investment advice: We believe that the company is the only platform for listed companies that the local government and the Zhangjiajie State-owned Assets Administration Commission plan to expand and strengthen scenic spots, and can receive strong policy support. At the same time, traffic conditions in the company's scenic spots continue to improve, and the business side is expected to maintain steady development in the future. The EPS for 2018-2020 is expected to be 0.14, 0.19, and 0.24 yuan, respectively, and the stock price corresponding to PE is 37, 27, and 22 times, respectively, maintaining the “increased holdings” rating. Risk warning: passenger flow in the ancient city of Dayong falls short of expectations; uncertainty of weather factors; geopolitical risks.