(Yicai Global) July 17 -- Shares of Tibet Tourism gained after the operator of top-rated Chinese scenic spots such as the Yarlung Tsangpo Grand Canyon and Basum Lake said it intends to diversify its assets by acquiring a controlling stake in Beihai Xinyi Cruise, a southern Chinese cruise company.

Tibet Tourism [SHA: 600749] closed 1.9 percent higher at CNY13.3 (USD1.90) after moving up by 6 percent intraday.

The company that runs natural attractions in western China will pay CNY941 million (USD131.2 million) in cash to its biggest shareholder ENN Group to buy a 60 percent stake in the Beihai-based operator of four marine tourism routes, including one between its hometown in the Guangxi Zhuang Autonomous Region and southern China's Haikou, the Lhasa-based buyer said in a statement yesterday. It also has other lines in northeastern China's Shandong and Liaoning provinces.

The buyer and the target company are affiliates. Hebei province-based conglomerate ENN Group, which started as an energy company, has a 26.4 percent stake in Tibet Tourism. 

Tibet Tourism makes most of its money from running tourist attractions in the Xizang Autonomous Region and the peak season goes from May to October so the firm aims to enrich its revenue sources via the acquisition, it said.

Chinese tourists are on the move again after the Covid-19 pandemic. In the first quarter, Xinyi Cruise recorded CNY52.9 million (USD7.4 million) in net profit, reversing a downward trend as in the year 2022, it logged a deficit of CNY92 million, per the statement. From January to March, revenue tallied CNY175.7 million (USD24.5 million), equalling over three-quarters of the total of last year.

In the first half, Tibet Tourism expects to earn around CNY2.8 million (USD390,369) in net profit after reporting a net deficit of CNY25.9 million a year ago, according to an estimate released last week. The number of people who visit core attractions has already rebounded to levels seen in 2019, it added.

Editor: Emmi Laine