On September 10, Anhui Jiuhuashan Tourism Development Co.,Ltd. (603199) announced the termination of its private placement plan and the withdrawal of related application documents. Previously, the Shanghai Stock Exchange had twice issued audit opinions requiring the company to respond during the review of the private placement scheme.
According to the private placement plan disclosed in May this year, Anhui Jiuhuashan Tourism Development Co.,Ltd. originally planned to raise 500 million yuan to invest in the Jiuhua Mountain Lion Peak Scenic Area passenger cable car project, the guest room upgrade and renovation projects for Jiuhua Mountain Julong Hotel and the north building of Jiuhua Mountain Center Hotel, and transportation equipment upgrade projects.
Among these, the new cable car project was the centerpiece of the fundraising projects, with Anhui Jiuhuashan Tourism Development Co.,Ltd. planning to invest 326 million yuan to cultivate new profit growth points. The company expected this cable car to generate annual operating revenue of 111 million yuan and after-tax profit of 37 million yuan.
"The company's decision to terminate the private placement of A-shares to specific targets is a prudent decision made after comprehensive consideration of factors including current market environment changes and the company's development planning," Anhui Jiuhuashan Tourism Development Co.,Ltd. stated on the evening of September 10 when announcing the termination of the private placement. The company further emphasized that terminating the private placement will not affect the company's normal production and operations, and there is no situation that would harm the interests of the company and all shareholders, particularly minority shareholders.
It was noted that during the period when Anhui Jiuhuashan Tourism Development Co.,Ltd.'s private placement plan was submitted to the Shanghai Stock Exchange for review, the company twice disclosed response letters regarding the exchange's audit opinions. The Shanghai Stock Exchange's inquiries focused on fundraising projects, financing scale, and the company's existing operating conditions, with specific inquiry content including: explaining the necessity of the fundraising projects and the reasonableness of new capacity additions; whether the benefit forecasts for fundraising projects are prudent and reasonable; and explaining the reasonableness of the financing scale in combination with the company's monetary funds and financial asset balances, funding gap calculations, and other circumstances.
Anhui Jiuhuashan Tourism Development Co.,Ltd. disclosed that in the company's calculations, the Jiuhua Mountain Lion Peak Scenic Area passenger cable car has a total length of approximately 2,150 meters and a total height difference of 632 meters, with round-trip tickets expected to average 160 yuan per person. The cable car pricing is relatively moderate. Referring to the cable car operating experience of comparable companies in the same industry, it is expected that the Jiuhua Mountain Lion Peak Scenic Area passenger cable car project will have 224,000 cable car passengers in the first year after completion, followed by 15% annual growth, stabilizing from the 15th year onward, with gross profit margin reaching 71.69% in the 15th year of project operation.
It is worth noting that as of March 31, 2025, Anhui Jiuhuashan Tourism Development Co.,Ltd.'s monetary funds and financial asset balances totaled 594 million yuan. Against this backdrop, whether the company needed to initiate private placement financing also attracted attention.
In response, Anhui Jiuhuashan Tourism Development Co.,Ltd. revealed that according to management's business planning for the company's future, in addition to the current fundraising projects, the company plans to invest an additional 923 million yuan, including five investments such as the Jiuhua Mountain Scenic Area Lion Peak Scenic Area Yunbo Leisure Residence project and the Jiuhua Mountain Baisui Palace cable car upgrade and renovation project. Therefore, the company expects a total funding gap of 698 million yuan over the next three years, which is greater than the total fundraising amount of 500 million yuan.
Although the private placement plan has been terminated, the construction of the Jiuhua Mountain Lion Peak Scenic Area passenger cable car project may still continue to advance. According to the public notice of state-owned land use rights auction results from Chizhou Natural Resources and Planning Bureau, Anhui Jiuhuashan Tourism Development Co.,Ltd. has successfully bid 14.35 million yuan for the Jiuhua Mountain Lion Peak Scenic Area passenger cable car land parcel, and this project is currently still in the public notice period. Chizhou Natural Resources and Planning Bureau stated that both parties have signed a transaction confirmation letter and will sign the transfer contract within 30 days.
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