China Travel mulls dividend amid easing pandemic situation

Finance | 1 Sep 2021 3:26 pm

China Travel International Investment Hong Kong (0308) said that it may consider distributing dividends if there is stable cash flow and profit in the second half of the year, but this will depend on the actual situation.

The travel agency is looking forward to the Mid-Autumn Festival and the National Day Golden Week this year because the mainland resort business grew rapidly in the first half of the year and has surpassed 2019 levels, it said at a press conference.

So long as the pandemic situation continues to be stable during the Golden Week, the holiday will have a driving effect on the company's performance, it said.

The agency made a turnaround and recorded a net profit of HK$5.2 million in the first half of this year, compared to a net loss of HK$443.49 million a year ago.

Revenue for the period rose 81 percent to HK$1.03 billion, mainly due to an easing in the pandemic. Operation losses fell 29.44 percent to HK$251 million.

It said its performance in hotel and passenger transportation operations will also largely depend on the status of Hong Kong's border restrictions.

As some reported local Covid-19 cases in Mainland China affected operations during the summer peak season, recovery momentum of its tourist attraction and related operations has been affected to a certain extent, the company said.


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