Feiyang International Holdings Group Limited (FEIYANG GROUP) published its unaudited results for the six months ended 30 June 2026.
Financial Performance • Revenue fell 19.70% year on year to RMB 410.46 million, reflecting softer demand for free independent traveller (FIT) products. • Gross profit slipped 4.18% to RMB 26.17 million, while gross margin improved to 6.40% (H1 2025: 5.30%) on a higher contribution from package tours. • Net profit advanced 7.34% to RMB 6.61 million, driven by a RMB 16.85 million reversal of impairment losses on financial assets (H1 2025: RMB 7.78 million charge). • Basic earnings per share declined to RMB 0.67 cent (H1 2025: RMB 0.80 cent) owing to the enlarged share base after the 2025 share placement.
Revenue Mix Shift • Package-tour sales increased 15.00% to RMB 218.62 million (53.3% of total revenue), benefiting from recovering domestic travel. • Gross revenue from FIT products fell 39.90% to RMB 190.14 million as consumers favoured value-added tour products. • Ancillary travel-service income declined to RMB 1.73 million, while information-system development services recorded no revenue.
Cost and Expense Dynamics • Cost of sales dropped 20.60% to RMB 384.29 million, broadly matching the lower FIT sales. • Selling and distribution expenses rose 26.70% to RMB 18.58 million, mainly due to higher staff costs linked to the roll-out of AI-enabled sales tools. • Administrative expenses edged up 6.65% to RMB 13.84 million, partly reflecting increased technology spending. • Other income and gains contracted to RMB 1.42 million (H1 2025: RMB 27.69 million) after the absence of prior-period disposal gains and compensation income.
Cash Flow and Balance Sheet • Operating activities generated net cash inflow of RMB 35.18 million (H1 2025: outflow of RMB 42.65 million). • Cash and cash equivalents totalled RMB 35.51 million; pledged deposits stood at RMB 33.37 million. • Interest-bearing bank and other borrowings were trimmed to RMB 195.53 million, all due within one year. • Net gearing remained high at 88%. • Capital commitments for investment projects amounted to RMB 42.89 million.
Capital Management • No interim dividend was declared. • No share repurchases or new issues occurred during the period. • Outstanding share options stood at 133.20 million, equal to roughly 13.34% of issued share capital.
Strategic and Operational Updates • The Group continues to pivot from low-margin FIT products toward higher-margin package tours. • Ongoing investment in artificial-intelligence initiatives is aimed at boosting efficiency, personalising travel products and expanding the Online Private Consultant community platform, particularly targeting the silver-age outbound segment. • Management remains focused on renewing short-term borrowings, optimising the sales network and strengthening cost control to support cash flow and profitability.
Outlook FEIYANG GROUP expects China’s tourism uptrend—underpinned by policy support, rising domestic demand and AI-driven service enhancements—to offer growth opportunities, while maintaining a cautious stance on spending and liquidity management.
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