【Record】Mr. Zhang Hui, Chairman of Palm Investment Gives a Speech in the In-Depth Discussion on "Reorienting Tourism Investment and Recasting the Industry"

Moderator: Distinguished guests, panelists will conduct an in-depth discussion on "Reorienting Tourism Investment and Recasting the Industry". Three parts will be included, such as self-introduction, Q&A and a short summary section.

The first section is about self-introduction. Please briefly introduce yourself and the institution that you are working for. Besides, your feeling and expectation towards the conference should be given. All these should be stated in 2 minutes.

Mr. Zhang Hui, Chairman of Palm Investment

Zhang Hui: I'm Zhang Hui, Chairman of Palm Investment. We have been specialized in tourism investment for 12 years and mainly invest in tourist destinations. Our company has constructed and acquired numerous tourism projects at home and abroad, such as the Western Poland Football Team participating in Premier League, Yanoda Rainforest Cultural Tourism Zone in Hainan province, Sanqianli Leisure Tourism Resort in Guilin city, Zhuxi River International Ecological Leisure Tourism Resort in Shangrao county, Yunman Lake Tourist Attraction in Guizhou province and a commercial district named "Time in Guizhou". Our system has faced an unprecedented challenge because of the pandemic, which has enlightened us on tourism investment. I'd like to share with you later. Thank you!

Moderator: Now, let's give the floor to Mr. Zhang Hui, Chairman of Palm Investment. As a well-known research investor and "King of Characteristic Towns" admitted by professionals of tourism, you have insightful views on planning and site selection, layout and design, constructure and operation, and investment management of characteristic towns. Every town that you have planned and invested in becomes a fine example which is eco-friendly in the industry. You’'re admitted and respected by tourism investors.

I have two questions. What's the influence of COVID-19 on characteristic towns' investment, construction and future development?

Tourism has been hit hard. Characteristic towns' investment and construction have encountered two disparate situations. Could you please tell us your suggestions and expectation about the towns' sustainable development, future investment and financing?

Zhang Hui: All investment institutions, including experienced tourism investors, and local governments pay highly attention to these two questions. Today we have the director-general of Hebei Provincial Department of Culture & Tourism. We have conducted in-depth cooperation with Hebei. During the outbreak, characteristic towns have undergone difficulties. I emphasized we should do more research and create an investment standard when constructing the towns and making investment. Therefore, we will seize opportunities to present opinions in every Tourism Investment and Financing Conference hosted by WTCF. In general, we should select the subject and design the mix of industry and finance reasonably, which decides whether we would succeed in the following tourism investment.

Hence, the standard we put forward has three points. The first is resource endowment. The selection of resource endowment determines the future. The second is a popular IP which has been mentioned by other guests. Is the IP powerful or not? Does the IP hold an important place in tourists’' hears? The third is about in-depth experience of the scene, which is mentioned by distinguished guests namely "Tourism plus Technology". We should figure out what kinds of technology and works are impressive and touched. The outbreak impacted the towns, so we paused in the first half of 2020. However, the situation gets better recently. For example, Xunlong River Eco Art Town in the suburbs is popular. Tourists have to make reservations and stay in the queue. There are also some projects available without making reservations.

I'd like to share with China's tourism investment institutions that "Traveling around the World" has remained the subject. Qualified characteristic towns are still acclaimed. Our aspiration to travel is growing, although it is restrained by the public rules. Is the industry recover soon or temporarily? It is certain that tourism, including parent-child trips, family trips and customized trips in the suburbs, and unique design of products in special tourist attractions, is gradually recovering in order. We builders of characteristic towns speed up to work on the layout in the post-pandemic era. We keep in step with local governments. Our LP, investors and we have cashed out and continued to seek for new opportunities for investing in funds of various industries. A new era, in which tourism investment and financing industry will be restructured, is on its way. We have a profound understanding about tourism investment and financing, which means that we’'ll increase the number of investment conditions to prevent risks effectively. Therefore, I hope companies with projects and resources would leverage the platform provided by WTCF Investment Committee to exchange opinions and support each other. We expect that tourism investment and financing will recover soon. The situation will be better than you can imagine.

Mr. Li has mentioned that Characteristic towns have encountered two disparate situations now. The second question is about our plans which include how we will operate the towns. Dr. Zou has suggested that it's vital to select projects when referring to tourism investment and financing. However, management after purchase determines whether the investment is successful or not. Therefore, we leverage the window period offered by the pandemic to upgrade the existing towns and those in operation, such as Yanoda Rainforest Cultural Tourism Zone in Hainan province, and programs in Guilin city and Yangshuo county. During the period, we have realized that our towns can't satisfy tourists, so we have been making adjustments.

We are planning the IPO for some programs. Besides, we speed up to find a path for characteristic towns into the capital market. That's all, thank you.