CYTS Tours (600138.SS) attended our dbAccess China Conference today. Keytakeaways from the conference are as follows:Ancient town traffic update - Wuzhen attracted a total of c.10 million visitors in2017 (vs. c.9 million in 2016). In its third year of operation, Gubei attracted a totalof c.2.8 million visitors in 2017 (vs. c.2.5 million in 2016). This is mainly due tomore sight-seeing projects and entertainment facilities to the site and marketingcampaigns.

Ancient town revenue breakdown update - Management disclosed the roughbreakdown of current Wuzhen’s top line that c.50% comes from tickets, c.30%comes from hotels and dining and c.10-20% comes from others (includingretailing and transportation fee). As for Gubei's topline, c.40% of toatal comesfrom tickets, c.50% comes from hotels and dining and c.10% comes from others(including retailing and transportation fee).

Ticket price hike - Management pointed out that the price hike in the past wasonly from tickets. There was a Wuzhen ticket price hike in 2017 (East Gate’s will beadjusted from RMB100 to RMB120, a 20% increase and West Gate’s ticket pricewill be adjusted from RMB120 to RMB150, a 25% percent increase). Managementalso disclosed that there is a difference in ticket pricing between Wuzhen andGubei. Wuzhen's ticket price is subject to government approval, while Gubei'sticket price is market-adjusted.

Revenue from real estate - The real estate income of Gubei is not recurring.Gubei generated revenue of c.RMB40 m as of 9M17 (vs. RMB80 m in 2016). Thedifference is due to the real estate income (Phase 1 was booked in 2016 andPhase 2 is expected to be booked in 2018E). Management guided that there willbe almost no real estate income in 2017

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