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China Travel International's profit attributable to shareholders achieved HK$ 224 million in 1H2023, proposed an interim dividend of HK 1.5 cents per share
Effectively seized travel rebound, multiple destinations recorded historical revenue
Recovery far exceeded the industry average
HONG KONG, Aug 30, 2023 - (ACN Newswire) - China Travel International Investment Hong Kong Limited ("China Travel International" or the "Company", together with its subsidiaries, the "Group") (stock code: 308) has announced its interim results for the six months ended 30 June 2023 (the "Period"). In the first half of 2023, the Group reported consolidated revenue of HK$2,055 million, representing a year-on-year increase of 132%. Profit attributable to shareholders resumed to HK$224 million, a turnaround from the previous year. Profit attributable to operating activities amounted to HK$ 209 million, representing an increase of HK$475 million over the same period of last year.
RESULTS HIGHLIGHTS:
-- In the first half of 2023, the Company turned losses into profit, with a consolidated revenue of HK$2,055 million (YOY increase of 132%) and a net profit attributable to shareholders of HK$ 224 million (an increase of HK$475 million over the same period of last year).
-- The strengthened core competitiveness in product, digital and operating capabilities propelled the leading recovery in earnings. Revenue of Shapotou, Detian, Anji and other destinations broke records.
-- The financial position remains stable and healthy, with cash and bank balances of HK$2,684 million and a low debt-to-equity ratio of approximately 27%.
-- The Company proposed to resume dividend payments.
Benefiting from the normalization of economic activities in the first half of 2023, the strong travel demand in mainland China, and the significant increase in cross-border travel among the Great Bay Area, coupled with the effective implementation of the Group's strategic initiatives, the Group's revenue from tourist attractions and related operations increased 83%during the Period, amounted to HK$1,066 million. The revenue from travel document and related operations reached HK$219 million. The hotel operations generated revenue of HK$316 million, a 41% year on year growth, with attributable profit of HK$69 million. The passenger transportation operations recorded revenue of HK$439 million, turning loss into profit. The Group maintained a solid and healthy financial position, with cash and bank balance of approximately HK$2,684 million and a debt-to-equity ratio of approximately 27%, indicating sound investing and financing capabilities.
The Board has proposed an interim dividend of HK1.5 cents per share (1H2022: Nil) for the six months ended 30 June 2023, representing a dividend payout ratio of 37%.
As the implementations of industry-leading tourism products increased consumption per person, the revenue of several tourist destinations reached new highs. Following the sensational success of the Desert Star Hotel, Shapotou Scenic Spot will introduce the luxury "Diamond Hotel" in the second half of 2023 to strengthen its position as the leading market player. Across the nation, the launch of "Ring in the Sky" in the Detian Scenic Spot gathered tremendous attention, accumulating over 100 million views on Douyin, and became the hottest search on Weibo in the following days. In the first half of 2023, the revenue from Shapotou, Detian, Anji and other tourist attractions increased by 46%, 323%, and 37%, respectively, as compared to the same period in 2019, breaking records.
Guided by strategy, the Company continuously enhancing its core capabilities and pursuing "distinctive, high-quality" development. Committed to its strategy of becoming a "first-class tourist destination investor, operator and service provider", the Group focused on creating travel and leisure related products in mainland China and Hong Kong, strengthening its core competitiveness in product, digital and operating capabilities, in order to build world-class tourism destination with influential brands, with an aim to achieve growth in scale and establish a leading position. The company actively seeking to deploy high-quality resources in Hainan, Sichuan, Yunnan and other areas to construct first-class tourism destination clusters, including promising projects like Shapotou Diamond Hotel, Lugu Lake Hotel, Anji Animal Farm.
Promote sustainable and high-quality development through acquisition of quality projects which bring strategic resources and enhance brand influence. During the Period, the Company and Changde City Development Group Co., Ltd. established a joint venture, with the Company holding a 34% stake, to develop an Exploration Camp in a 5A scenic spot in Changde City, to pave the way for systematically integration of tourism resources in Changde City. The launch of the Kurdening Glamping among the Xinjiang Tianshan Corridor marked another successful investment of its "asset-heavy and asset-light" development model. The Group will cooperate with Hongkong Land and West Coast Group to jointly develop the first cable car across Shanghai's Huangpu River, aiming to create a remarkable tourist destination with global presence. The dedicated investments in core areas demonstrated the Group's commitment to seize opportunities from a broader recovery and to capitalize on the momentum. Following the rebound in cross-border travel demand, the Company will also seek opportunities to enhance its leading position in cross-border passenger transportation. The Company is actively expanding its presence in overseas market, and jointly developing the Maldives Resort with Zhen Hua Engineering Company Limited.
Existing assets will generate higher return after revitalisation. The conversion of the Hip Kee Godown (No. 3) land parcel in Hung Hom to hotel use significantly increased the land's value and development potential. The reconstructed 28-storey business hotel is expected to open in early 2024. The development and construction of the commercial complex locate in Baoan, Shenzhen are carried out in an orderly manner. In line with its strategy, the Company is actively considering further revitalization and optimization of other inefficient assets. The company is still in the process of evaluating the potential acquisition of a property located at Nos. 8-12 Fenwick Street & No. 42-50 Lockhart Road, Wan Chai, Hong Kong, and no definitive or binding agreement has been entered yet.
Amidst a complex international environment, China's economy began to rebound early this year following the lifting of COVID-19 pandemic control measures, and continued to improve in the second quarter. In the second half of 2023, the Group will continue to monitor the macro environment, prudently seeking expansion, and continue to seize the opportunities and enhance its asset mix, acquire new resources, create leading products so as to improve performance and create greater value for shareholders.
About China Travel International Investment Hong Kong Limited
With its strategy of becoming "a first-class tourist destination investor, operator and service provider", the Group focuses on the development of tourist destinations and is committed to controlling core resources and integration of the tourism industry value chain. The principal business activities of the Group include investment and operations of tourist attraction and related business (including theme parks, natural and cultural scenic spots, leisure resorts and supplementary tourist attraction operations), travel document and related operations, hotel operations and passenger transportation operations.
Source: China Travel International Investment Hong Kong Limited
Sectors: Travel & Tourism
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