Hong Kong China Travel's first quarter adjusted net profit doubled

China Travel Service (00308) announced that, as of the end of March this year, the first quarter recorded revenue of 1.1 billion yuan, a year-on-year increase of 13%, and the first quarter recorded an adjusted net profit of 130 million yuan, excluding changes in the fair value of investment properties, a year-on-year increase of 1.01 times.

After excluding the travel real estate business that was no longer included in the group's consolidated financial statements this year, the group's revenue for the first quarter increased by 23% year-on-year. In the first quarter of this year, the total number of visitors to tourist attractions and related businesses was approximately 6.15 million, a year-on-year increase of 19%.

The revenue growth was mainly driven by the group's acquisition of Jilin Songhua Lake International Resort Development Co., Ltd. and CTS (Beijing) Ice and Snow Sports Development Co., Ltd. on October 27 last year, which brought new sources of revenue; and the increase in visitor numbers at other existing projects of the group led to higher revenue.

The profit increase in the first quarter was mainly due to the group's completion of the spin-off of the travel real estate business through a physical distribution on December 22 last year. The financial performance of the travel real estate business was separated from the group's consolidated financial statements from the date of the distribution, allowing the group to divest from continuously loss-making enterprises; and the rise in revenue from the group's tourist attractions and related businesses.