New Stock News | Slender West Lake Passes HKEX Hearing, Mainly Engaged in Water Tour and Sightseeing Transportation Services in Yangzhou Slender West Lake Scenic Area

According to the disclosure by the Hong Kong Stock Exchange on October 7, Jiangsu Slender West Lake Cultural Tourism Co., Ltd. (referred to as: Slender West Lake) has passed the listing hearing for the Main Board of the Hong Kong Stock Exchange, with EB SECURITIES International acting as its sole sponsor. According to the prospectus, the company is a state-owned water tour service provider headquartered in Yangzhou City, Jiangsu Province, mainly comprising three major business segments: (i) provision of water tour boat sightseeing services, including value-added "cruise+" services and charter services as well as the Grand Canal Yangzhou cruise performance; (ii) provision of sightseeing vehicle services; and (iii) provision of management services. Water tour services refer to leisure sightseeing experience activities carried out on navigable inland waters such as rivers, lakes, and canals, aboard sightseeing boats, self-driving boats, painted pleasure boats, dining boats, etc., excluding overnight and non-overnight cruise voyages. Slender West Lake mainly operates water tour boat sightseeing services in well-known areas of Yangzhou, including the Shugang-Slender West Lake Scenic Area and the Ancient Canal area, both of which are part of the UNESCO World Heritage sites of the Grand Canal. In addition, the company provides sightseeing vehicle services and has developed an asset-light business model to provide management services for tourist attractions. According to Frost & Sullivan data, in 2025, the company ranked second in the Jiangsu Province water tour service market in terms of boat ticket sales, accounting for approximately 18.5% of Jiangsu Province's market share. The Jiangsu Province water tour service market is part of China's water tour service market, which in turn is part of China's broader tourism market. In 2025, the Yangzhou City water tour service market's market share accounted for approximately 18.8% and 1.2% of the Jiangsu Province and China water tour service markets, respectively, and is expected to reach approximately 21.9% and 1.4%, respectively, by 2030. The company provides diversified sightseeing boat services, including standard water tour boat sightseeing services, value-added services, and projects such as the "Grand Canal Yangzhou Cruise Performance." The company directly owns all of its tour boats. As of the Latest Practicable Date, the company had a total of 231 boats, including 36 sculling boats, 121 self-driving boats, and 74 themed boats, with a total passenger capacity of 4,273 per single voyage under standard operating conditions and a maximum daily carrying capacity of approximately 37,000 during peak tourism periods. The water tour boat sightseeing business has been the company's main source of revenue in the past and during the Track Record Period. Revenue in China's water tour service market grew from RMB 5.7 billion in 2021 to RMB 10.9 billion in 2025. Driven by continuously favorable water tourism policies, continuous upgrading of related tourism products, and growing consumer demand for distinctive water tourism experiences, it is expected to maintain steady growth. By 2030, revenue in China's water tour service market is expected to grow from RMB 10.9 billion to RMB 15.7 billion, with a compound annual growth rate of approximately 7.7% from 2025 onward. In terms of financials, for 2023, 2024, 2025, the six months ended June 30, 2025, and the six months ended June 30, 2026, the company's revenue was approximately RMB 109 million, RMB 111 million, RMB 141 million, RMB 83 million, and RMB 83 million, respectively; for the same five periods, the company's profit and total comprehensive income for the year/period was approximately RMB 46.43 million, RMB 42.87 million, RMB 48.29 million, RMB 35.30 million, and RMB 34.72 million, respectively.