China Travel’s first half profit plunges due to yuan depreciation
China Travel International Investment Hong Kong said its net profit fell 71% in the first half due to the ongoing depreciation of the yuan against the Hong Kong dollar.
China Travel International Investment Hong Kong, the Hong Kong-listed subsidiary of China National Travel Service, said its net profit fell 71% in the first half, adding that its business hasn’t benefited directly from a merger with its parent in July.
China Travel, which operates hotels, theme parks and leisure resorts, reported net profit of HK$270 million for the six months ended June 30, down 71.2% year on year.
Revenue slipped 13% year on year to HK$1.82 billion. The firm approved the payment of an interim dividend of 2 HK cents per share for the first half.
China Travel chairman Muhan Xu said the plunge in profit for its core business was mainly attributable to the ongoing depreciation of the yuan against the Hong Kong dollar.
Earnings from the hotel business in Hong Kong continued to decline and only contributed 6% to the company’s results. Hong Kong hotels saw average hotel occupancy rates rising but room prices slipped in the first half.
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