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China Travel International's net profit plummets 74% in 2016

03/30/2017| 6:21:14 PM| ChinaTravelNews

Tourism conglomerate China Travel International reported revenue of HK$4,070 million in 2016, down by 7%. Profit attributable to shareholders tumbled 74% to HK$350 million.

Hong Kong-listed tourism conglomerate China Travel International reported consolidated revenue of HK$4,070 million in 2016, down by 7% YoY. Profit attributable to shareholders of the year tumbled 74% to HK$350 million last year, compared with HK$1.35 billion in 2015.

Profit attributable to the operating tourism business was HK$410 million, representing a 34% decrease compared with last year. Decrease in profit attributable to shareholders was mainly attributable to no contribution from power generation operation disposed last year, impairment loss for project Xianyang Ocean Spring Resort, a decrease in interest income, and an exchange loss arising from depreciation of Renminbi against Hong Kong dollar.

Mr. Fengchun Zhang, Chairman of the Board, said: 

"Against the backdrop of intensified competition in the tourism industry, the company was confronted with great challenges in terms of expansion of new business and new projects, as well as fierce competition in travel destination and related operations, structural improvement in assets, business and team."

Key operation figures

In 2016, revenue of travel destination operations was HK$2,430 million, a 7% decrease compared with last year; and attributable profit was HK$230 million, a 24% decrease compared with last year.

Revenue of hotel operations was HK$750 million and attributable profit was HK$110 million, similar to last year. 

Revenue of theme parks was HK$760 million, a 6% decrease compared with last year; and attributable profit was HK$110 million, a 20% decrease compared with last year. Window of the World and Splendid China continued to enrich products and expand business to regain vitality. 

Revenue of natural and cultural scenic spots was HK$580 million, an 8% decrease compared with last year; and attributable profit was HK$40 million, representing a 19% decrease compared with last year. 

Revenue of leisure resort destinations was HK$340 million, a 15% decrease compared with last year; and attributable loss was approximately HK$70 million, an increase compared with last year. 

In 2016, revenue of the company’s travel agency, travel document and related operations was approximately HK$1,200 million, a 12% decrease compared with last year; and attributable profit was approximately HK$140 million, a 27% decrease compared with last year. 

In December 2016, the strategic reorganization in respect of the merger of China International Travel Service Group Corporation (CITS) into China National Travel Service Group Corporation (HKCTS Group), the controlling shareholder of the Company, was completed and provided a strong brand effect for the development of tourism business of the Company. 

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TAGS: China Travel International | HKCTS Group | CITS Group
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