On May 13, the company announced that ① the proposal to issue shares to acquire 100% of the shares in the Jiufeng Valley Scenic Area while raising supporting funds for non-public shares was successfully passed by the board of directors; ② the company and Changjiang Electric Power plan to invest about 90 million yuan (of which the company is responsible for hull construction and decoration of about 60 million yuan) to jointly develop and build the Yangtze River Three Gorges pure electric sightseeing cruise ship, and put the results into commercial operation in a timely manner; ③ the company and the State Grid Yichang Power Supply Company jointly signed the “Port Shore Power Cooperation Implementation Agreement” to promote the construction and operation of the port terminal shore power system. Brief review of the extension project progressed smoothly, and the tourism industry continued to increase the tourism industry. The Three Gorges Jiufeng Valley Scenic Area to be acquired is a national 4A tourist attraction, a key tourism project in Yidu; in 2016-2018, the number of visitors to the scenic area increased from 786,000 to 249,800, and turned a loss into a profit in 2018, achieving a profit of 7.279 million yuan (17 to 5.991 million yuan); according to the acquisition and gambling agreement, Jiufeng Valley Scenic Area withheld no less than 8 million yuan in 2019, 2020, and 2021, respectively. At 10,000 yuan and 11.5 million yuan, the growth of the scenic area is good; this acquisition will help the company achieve business collaboration with the Jiufeng Valley Scenic Area and accelerate market occupation and industry integration; at the same time, it will also help give full play to the respective advantages of the two sides, achieve complementary resources, and enhance the sustainable profitability of listed companies. Introduce key partners to continuously increase capacity and improve tourism quality. The company now chose to cooperate with Yangtze River Electric Power to build a pure electric sightseeing cruise ship. The partner Changjiang Electric Power is mainly engaged in clean energy business such as hydroelectric power generation, and has all the power generation assets of the three gorges, Gezhouba, Xiluodu and Xiangjiaba. It is the world's largest listed hydropower company, rich in resources and strong strength in the Yichang region; the company currently has 5 new luxury sightseeing cruises in the water tourism transportation sector, operating “transport* two dams and one gorge”, “transport* lift”, and “Changjia* Preliminary construction of tourism products such as “River Night Tour” There is a “one main and four auxiliary” public tourist passenger terminal layout with the Three Gorges International Cruise Center as the hub and Yichang Port, Maoping Port, Taipingxi Port and Sandouping Port. This strong alliance can not only build a new type of sightseeing cruise ship for the company, increase capacity scale, improve tourism quality, but also create the possibility for the two sides to discuss further in-depth cooperation in a wider range of fields after conditions are ripe. Joining forces with the State Grid to add new profit points The company and the State Grid signed the “Port Shore Power Cooperation Implementation Agreement”, entering into the field of port terminal shore power system construction and operation. After completion, it is expected that the company will charge shore power service fees from shippers and distribute this fee according to a certain proportion. It is expected that the current cooperation between the company and the State Grid will give full play to their respective advantages to effectively improve the environmental protection level of tourist ports, improve service quality, and enhance the operating efficiency of tourist ports. At the same time, ships docking at the company's ports use shore power, and the company obtains good profits by providing corresponding services, which is conducive to raising the profit level of the company's various tourist ports. This cooperation is expected to have a positive impact on the company's future business performance. Investment suggestions: It is expected that the company's main business will develop steadily in the next two years, and that the automobile sales service and transportation business will continue to innovate steadily, focus on the development of logistics business, and continue to increase the tourism business. There is clear room for growth. The EPS for 2019-2021 is expected to be 0.37, 0.44, and 0.48 yuan respectively. The current stock prices corresponding to PE are 22X, 19X, and 17X, respectively, giving it an “increase in holdings” rating. Risk warning: road passenger transport and tourism service traffic safety risk; transportation market downside risk; Yangtze River Delta tourism service enterprise competition risk; subsidiary enterprise management integration risk.