Changbai Mountain 2025 Annual Report Analysis: Revenue increased by 5.98% to 788 million yuan; financial expenses surged by 151%

Core Profitability Indicator Interpretation

Steady Growth in Operating Revenue

In 2025, the company achieved operating revenue of 787,783,942.81 yuan, a growth of 5.98% compared to 743,324,928.33 yuan in 2024. By quarter, the third quarter was the peak of annual revenue, reaching 400,773,076.00 yuan, accounting for 50.87% of the annual revenue, reflecting the company’s business has a significant seasonal characteristic, with summer tourism peak season contributing notably to revenue.

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• | | Q2 Revenue | 106,649,499.70 |
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• | | Q3 Revenue | 400,773,076.00 |
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• | | Q4 Revenue | 151,534,278.66 |
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Net Profit Decline Year-on-Year

The net profit attributable to shareholders of the listed company was 129,347,677.86 yuan, a decrease of 10.33% from 144,252,973.71 yuan in 2024. The net profit after deducting non-recurring gains and losses was 128,372,878.08 yuan, down 15.63% year-on-year, with the decline being greater than that of net profit, indicating that non-recurring gains and losses provided some positive support to the current period’s profit.

Earnings Per Share Decline

Basic earnings per share were 0.48 yuan/share, down 11.11% from 0.54 yuan/share in 2024; the net profit after deduction per share was also 0.48 yuan/share, a decrease of 15.79% compared to 0.57 yuan/share in 2024, consistent with the trend of profitability indicators.

Analysis of Period Expenses

Total Expenses Significantly Increased

In 2025, the company’s total period expenses amounted to 113,900,109.77 yuan, a growth of 24.6% compared to 91,418,095.60 yuan in 2024. The expense growth rate far exceeded the revenue growth rate, and was one of the main reasons for the profit decline.

Sales Expenses Increased by 15.88%

Sales expenses were 27,749,564.79 yuan, a year-on-year increase of 15.88%. Among them, advertising expenses rose significantly from 1,568,420.55 yuan in 2024 to 4,135,574.23 yuan, an increase of 163.67%, indicating that the company has intensified its market promotion efforts; at the same time, online ticketing service fees, printing and production fees, and other items also saw varying degrees of growth, reflecting increased investment in sales channel expansion and brand building.

Management Expenses Increased by 22.81%

Management expenses reached 80,672,103.98 yuan, an increase of 22.81% year-on-year. Employee compensation is the largest component of management expenses, rising from 39,140,907.85 yuan in 2024 to 51,271,477.67 yuan, reflecting a year-on-year growth of 31.0%, mainly due to employee salary adjustments and changes in personnel scale; at the same time, intercontinental hotel management fees, intermediary fees, and other items also increased, indicating a rise in the company’s operational management costs.

Financial Expenses Increased by 151%

Financial expenses were 4,474,441.00 yuan, a significant increase of 151.00% year-on-year. The main reason is the increase in the company’s short-term loans, with interest expenses reaching 4,550,578.81 yuan, a growth of 62.5% compared to 2,800,205.14 yuan in 2024, while unrecognized financing expenses amortization also increased, leading to a significant rise in financial burden.

No R&D Expenses Incurred

During the reporting period, the company incurred no R&D expenses and did not disclose any related information about R&D personnel, indicating that the company did not engage in any related R&D investment during the period.

Cash Flow Status Analysis

Net Cash Flow from Operating Activities Decreased by 15.74%

The net cash flow from operating activities was 173,143,435.95 yuan, a decrease of 15.74% compared to 205,475,201.06 yuan in 2024. The main reason was the increase in operating costs leading to higher cash outflows, while cash paid to employees and for employees increased from 179,302,148.38 yuan in 2024 to 208,421,441.72 yuan, a year-on-year increase of 16.2%, indicating a weakening in the cash recovery capability of operating cash flow.

Net Cash Flow from Investment Activities Narrowed

The net cash flow from investment activities was -150,224,138.75 yuan, narrowing 10.02% compared to -166,953,234.58 yuan in 2024. The cash paid for the purchase and construction of fixed assets, intangible assets, and other long-term assets was 150,294,499.75 yuan, a decrease of 8.1% compared to 163,591,414.77 yuan in 2024, indicating a decline in investment expenditures, mainly due to a slowdown in the pace of investment in some ongoing projects.

Net Cash Flow from Financing Activities Increased by 220.86%

The net cash flow from financing activities was 117,356,931.87 yuan, a substantial increase of 220.86% year-on-year. This was mainly due to the company completing a stock issuance to specific targets, with cash raised amounting to 249,822,783.64 yuan, while cash paid for debt repayment in the current period was 96,650,000.00 yuan, significantly increasing from 16,600,000.00 yuan in 2024, significantly enhancing the net inflow of funds from financing activities.

Compensation for Directors, Supervisors, and Senior Management

During the reporting period, the total compensation for key management personnel was 5,839,069.16 yuan, an increase of 2.27% compared to 5,709,608.64 yuan in 2024. Among them, Chairman Wang Kun’s total pre-tax compensation was 773,900 yuan, General Manager Wang Juncho’s was 735,000 yuan, and Vice General Manager Wang Haiqi’s was 364,100 yuan. The compensation for Financial Director Li Lei was not separately disclosed in the details of key management personnel compensation, and the overall level of compensation reflects a certain lag in salary adjustments compared to the company’s profit decline.

Risks Faced by the Company

Operating License Risk

The company obtained tourism passenger transport and other operating licenses in the Changbai Mountain scenic area through public bidding, valid until August 21, 2030. If it cannot be successfully renewed after expiration or if the license fees rise sharply, it will have a significant adverse effect on the company’s core business and profitability.

Macroeconomic Cycle Risk

The tourism industry is significantly affected by the macroeconomic environment. If the domestic economic growth slows down, and the growth of disposable income for residents is weak, tourism consumption demand will be suppressed, which will then affect the company’s customer market and revenue scale.

Unexpected Event Risk

Natural disasters, major epidemics, and sudden incidents can impact the tourism industry. For example, the pandemic since 2020 has had a considerable effect on the company’s operations. Should similar events occur in the future, the company’s performance may still fluctuate.

Risk of Charging Standards Being Limited

The company’s ticket prices for tourism passenger transport, hot spring water sales, and heating must be approved by relevant authorities, and cannot be adjusted in a timely manner according to market conditions. If costs rise and the charging standards cannot be adjusted simultaneously, the company’s profitability will be pressured.

Risk of Sudden Public Events

The tourism industry is sensitive to changes in the external environment, whether they are natural disasters, economic events, or public health incidents, all of which can trigger a crisis in the industry. As a tourism enterprise, the company faces a high risk of sudden public events.

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Editor: Xiao Lang Express