Cinese International Announces 2023 Annual Results
HONG KONG, Mar 27, 2024 - (ACN Newswire) - Air ticket distributor, travel business process management services provider and travel products services provider Cinese International Group Holdings Limited ("Cinese International", collectively with its subsidiaries, the "Group"; stock code: 1620) has announced its annual results for the year ended 31 December 2023.
Following the ease of the COVID-19 pandemic, there was a continuous recovery of the travel industries worldwide, and the Group's performance in 2023 has also recovered steadily. The Group recorded a total revenue of approximately HK$103.5 million for the year ended 31 December 2023 (2022: HK$45.8 million). Such increase was mainly attributable to the increase in revenue generated from the air ticket distribution segment and travel products and services segment. Gross profit increased by approximately 96.4% year-on-year to approximately HK$44.2 million in 2023 (2022: HK$22.5 million); overall Gross profit margin was 42.7%. The Group achieved a turnaround for the year, with a profit for the year of HK$2.9 million (2022: loss for the year at HK$13.8 million).
*Air ticket distribution*
During the year, revenue for the air ticket distribution segment substantially increased by approximately 93.9% to approximately HK$22.1 million. Such increase was mainly attributable to the increase in transaction volume of air tickets sales and gross sales proceeds generated from air tickets sales, primarily due to the continuous recovery of the travel industries worldwide. As one of the International Air Transport Association (IATA) accredited travel agents in Canada and one of the Airlines Reporting Corporation (ARC) accredited travel agents in the United States, the Group is qualified to obtain ticketing authority to issue air tickets of all available flights on behalf of IATA member airlines and ARC member airlines and secure private fare deals directly from them. As at 31 December 2023, the Group had ticketing authority for more than 150 airlines and private fare deals with around 70 airlines, including top airlines based in Canada, the United States and the People's Republic of China ("the PRC").
*Travel business process management*
The travel business process management segment provides a range of travel business process management including air ticket transaction processing, customer contact, BSP/ARC settlement and reconciliation, software development and travel licensing, compliance and other administrative matters. Segment revenue generated from travel business process management decreased by approximately 34.1% year-on-year to approximately HK$21.1 million for the year. Such decrease in segment revenue was mainly attributable to the Group’s reduced business cooperation with certain customers with lower profit margins to improve the operational efficiency and profitability. As a result, the Group recorded a year-on-year increase in gross profit margin for the travel business process management segment of approximately 18.4 percentage points to approximately 66.4%. The management will continue to expand the Group's customer base by initiating sales efforts targeting travel agents that share similar profile and market positioning as its existing customers, while at the same time optimise the Group's customer profile.
*Travel products and services*
The Group has resumed providing package tours in the first quarter of 2023 following the ease of the COVID-19 pandemic. Leveraging its knowledge and experience as a travel services provider, the Group continues to extend its presence to the Guangdong-Hong Kong-Macao Greater Bay Area ("Greater Bay Area"). During the year, the Group recognised segment revenue of approximately HK$60.3 million primarily in relation to the provision of company-operated cultural tours in the Greater Bay Area. The management will continue to consolidate and expand the Group's presence in the Greater Bay Area through sourcing new customers.
*Future Prospects*
Air travel demand is off to a very healthy start in 2023, which bodes well for the continued and steady recovery from the COVID-19 pandemic. The airline, travel and tourism industries worldwide have significantly improved alongside with steady demand for travel and increasing flight numbers. Airlines of different countries have increased their number of destinations while passenger demand and bookings demonstrate a continued growth. Leveraging its knowledge and experience from being a travel services provider to explore new business opportunities, the Group had entered into a non-legally binding memorandum of understanding in early 2024 with a travel and healthcare services provider based in Hainan, the PRC in relation to potential travel and healthcare business cooperation.
Ms. Mariana Kou, Chairperson and Executive Director of Cinese International, said, "The Group has resumed providing package tours in the first quarter of 2023. We believe that the travel industries as a whole are improving, which will in turn create more business opportunities for the Group. The Group will continue to develop its presence in the travel industries of the Greater Bay Area. Also, Cinese International will keep deploying business strategies with a view to further develop its travel related businesses and endeavor to explore suitable business opportunities in the travel consultancy, healthcare, hospitality and other potential service industries by leveraging its knowledge and experience, so as to create business synergy, enhance earning capability and potential, and bring value to shareholders of the Company."
*About Cinese International Group Holdings Limited*
Cinese International is a long-established air ticket distributor, travel business process management provider and travel products and services provider in Canada, founded in 1976 and with more than 40 years of operating history. The principal businesses of the Group include (i) air ticket distribution in which it distributes air tickets to travel agents and travelers and issue air tickets directly on behalf of contracted airlines; (ii) travel business process management in which it provides mid-office and back-office support services to travel agents; and (iii) travel products and services in which it designs, develops and sells package tours, as well as other travel products and services to travel agents and travelers.
For media enquiries:
Strategic Financial Relations Limited
Keris Leung Tel: (852) 2864 4863 Email: keris.leung@sprg.com.hk
Maggie Ko Tel: (852) 2846 4890 Email: maggie.ko@sprg.com.hk
Copyright 2024 ACN Newswire. All rights reserved. www.acnnewswire.com