HONG KONG SAR – Media OutReach Newswire – March 19, 2024 –
Tongcheng Travel Holdings Limited (“Tongcheng Travel” or the “Company”, together with its subsidiaries the “Group”, stock code: 0780.HK), an innovator and leader in China’s online travel industry, today announced its results audited consolidated accounts for the year ended December 31. 2023 (the “period under review” or “2023”).
2023 Results Highlights with Year-on-Year Change (YoY)
Robust financial growth with revenues reaching new highs
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Revenue increased 80.7% on a year-over-year basis to RMB 11.9 billion, an increase of 60.9% from 2019.
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Adjusted EBITDA increased 117.4% year-on-year to RMB 3.12 billion; the adjusted EBITDA margin increased by 4.5 percentage points to 26.3%. Adjusted EBITDA increased by 54.8% compared to 2019.
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Adjusted net profit increased 240.3% to RMB 2.2 billion; adjusted net margin increased 8.7 percentage points to 18.5%. Adjusted net profit increased by 42.4% compared to 2019.
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The Board recommended the payment of a final dividend of 15 Hong Kong cents per share.
Committed to penetrating non-prime markets
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The average number of monthly paying users for 2023 increased by 39.1% to 41.3 million.
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Annual paying users increased 25.2% to an all-time high of 234.7 million.
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72.7% of new paid users on the Weixin platform came from non-tier one cities.
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Registered users residing in non-first-tier cities accounted for 86.9% of total registered users.
Large companies saw a strong rebound in demand, surpassing 2019 levels
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Revenue from transportation ticketing services increased by 78.5% to RMB 6.03 billion, an increase of 33.5% from 2019.
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Revenue from accommodation booking services increased by 61.5% to RMB 3.90 billion, an increase of 65.4% from 2019.
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Other* revenue increased by 148.6% to RMB 1,996.7 million, an increase of 280.3% compared to 2019.
* Revenues from third parties mainly include revenues generated by (i) tourism services; (ii) advertising services; (iii) hotel management services; (iv) business travel services and (v) value-added ancillary services for users.
In 2023, Tongcheng Travel capitalized on growth opportunities and outperformed the market with remarkable results. The Group’s total revenue is RMB 11.90 billion. Adjusted net profit reached RMB 2.20 billion, a significant increase of 240.3% year-on-year, with an adjusted net profit margin of 18.5%. In 2023, the number of the Group’s average monthly paying users increased by 39.1% to 41.3 million, and the number of annual paying users increased by 25.5% to 234.7 million. Gross merchandise volume reached a record high and increased 96.8% on a year-over-year basis to RMB 241.5 billion.
Mr. Ma Heping, Executive Director and Chief Executive Officer of Tongcheng Travelsaid: “China’s tourism industry experienced exceptional recovery momentum in 2023, which is expected to continue in 2024. The Group’s revenue recorded robust growth to reach a record level during the year under review, exceeding the same period in 2019. The Group will continue to penetrate the domestic market to gain more market share. Significant progress has been made in our hotel management and package travel businesses, which will pave the way for a second growth trajectory. In addition, the resumption of international market development will bring new opportunities for business expansion. Before.”
Develop into one New generation National Travel platform to propel APUs to new High
To expand its traffic sources, the Group continued to operate various channels in online and offline scenarios, such as maintaining stable and efficient traffic within the WeChat mini program and deepening strategic cooperation with Tencent. The Group has explored various scenarios within the Tencent ecosystem to expand user reach and made constant efforts to refine operations to improve user acquisition efficiency. To attract young users, the Group collaborated with Tencent Games and launched e-Sports activities. It also optimized the entry point interfaces on QQ browser and Weixin search platform to provide better user experience.
The Group also intensified its efforts in operating its mini-program on Alipay and explored the potential of the ecosystem. Additionally, it continued its partnership with a major mobile phone provider, providing its users with convenient and reliable services for transport ticketing and accommodation booking. At the same time, the Group continued to develop offline user acquisition channels. Throughout 2023, the Group has dedicated itself to creatively developing marketing strategies. It has launched various innovative marketing campaigns, such as e-sports games, open markets and music festivals, to strengthen connections with young users.
As the coverage of service scenarios expands and the trust level of users increases, Tongcheng Travel has gradually become the “national next generation travel platform”. During the period under review, the Group’s average monthly paying users for 2023 increased by 39.1% year-on-year to 41.3 million, an increase of 53.5% compared to 2019. Annual paying users increased 25.2% year-over-year to an all-time high of 234.7 million. , an increase of 54.0% compared to 2019.
Core businesses recorded solid growth while other businesses expanded rapidly
The Group’s revenue from transportation ticketing services increased 78.5% year-on-year to RMB 6.03 billion during the reporting period, mainly driven by the strong rebound in demand for transportation ticketing services . For the fourth quarter of 2023, the group’s airline ticket volume increased by more than 16% compared to the same period of 2019, far outpacing the overall industry performance. The Group’s rail ticketing business experienced revenue growth exceeding the increase in business volume, due to strategic changes aimed at improving monetization. Additionally, Tongcheng Travel capitalized on opportunities arising from increased demand for local and short-haul travel and improved operations of its bus and car transportation businesses.
The Group’s accommodation activity posted robust growth both in volume of activity and in turnover. During the period under review, the accommodation sector’s revenue increased by 61.5% year-on-year to RMB 3.90 billion. In the fourth quarter of 2023, domestic nights sold recorded growth of more than 70% compared to the same period of 2019 and international nights sold completely returned to their 2019 level.
Furthermore, the Group is committed to achieving diversification of its activities. Other businesses include tourism services, advertising services, hotel management services, business travel services and value-added ancillary services for users. Other business revenue increased 148.6% year-on-year to RMB 1.97 billion, an increase of 280.3% from 2019. The proportion of other business revenue segments in the revenue Total revenue continued to increase, increasing by 9.5 percentage points, from 7% in 2019 to 16.5% in 2023. The increase in other income is mainly attributed to the Group’s continued development in its tourism services, its advertising services and its hotel management services.
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To ensure a rewarding experience for users, the Group has improved the Huixing intelligent system, which provides personalized travel solutions based on their preferences. For customer services, the Group has constantly applied artificial intelligence generated content (AIGC) to improve efficiency and quality. In the fourth quarter of 2023, the Group signed a strategic agreement with Chengdu Shuangliu Airport, aiming to collaborate in establishing the airport as a regional transit hub. Tongcheng Travel also partnered with Changbai Mountain to develop an intelligent tourism service platform that consolidates local tourism information. Additionally, the Group has built a comprehensive portfolio of PMS brands to offer Software-as-a-Service (SaaS) solutions to more individual hotels and chains, as well as alternative accommodations to improve efficiency of their daily operations.
Tongcheng Tavel is stepping up its efforts to improve its ESG performance and has achieved remarkable results. The Group’s MSCI ESG rating received an AA rating for the second consecutive year in 2023 and was successfully included in S&P Global’s Sustainability Yearbook (China) 2023. As a socially responsible enterprise, Tongcheng Travel is committed to supporting the sustainable development of the travel industry. The Group continued its contribution to rural revitalization through projects such as the “Lindu Warm Village”. It also launched a training program on digital exploitation and marketing of rural tourism for tourism professionals to promote the growth of the rural economy. Additionally, the Group focuses on the well-being of the community it serves. It has cooperated with various hotels in China throughout the year and launched a hotel alliance “Tongcheng Shelter” to provide free supplies and rest areas for users in various scenarios, such as during the exam season. university admission and in response to extreme weather conditions in China. .
China’s travel industry has witnessed astonishing recovery momentum, driven by diversified travel demand. This trend will continue until 2024. Going forward, the Group will continue to leverage its competitive strengths, including its strong market position, diversified traffic sources and advanced technological capabilities. The Group will focus on improving user loyalty and value, while expanding the user base. The Group will intensify its efforts to enrich and refine its products and services, thereby improving the user experience. Additionally, the Group is committed to leveraging technology to move from an OTA to an ITA. It will actively seek investment opportunities in line with its strategic objectives to drive future growth. It will integrate corporate governance, environmental protection and social responsibility into its operations and create long-term sustainable value for stakeholders.
Hashtag: #TongchengTravel
The issuer is solely responsible for the content of this announcement.
