CHINA TRAVEL HK (00308) announced its financial results for the three months ended March 31, 2026. The group recorded revenue of HKD 1.10 billion, representing a 13% increase compared to the first quarter of 2025. The adjusted net profit for the quarter, excluding fair value changes of investment properties, was HKD 130 million, marking a significant year-on-year growth of 101%. Excluding the tourism property business, which was deconsolidated this year, the group's first-quarter revenue showed a 23% increase compared to the same period in 2025. During the first quarter of 2026, the total number of visitors to the group's tourist attractions and related businesses reached approximately 6.15 million, a 19% rise from the first quarter of 2025. The revenue growth in the quarter was primarily attributed to two factors: (i) new revenue streams generated from the acquisitions of Songhua Lake International Resort Development Co., Ltd. in Jilin Province and CHINA TRAVEL (Beijing) Ice & Snow Sports Development Co., Ltd., which were completed on October 27, 2025; and (ii) increased visitor numbers at the group's other existing projects leading to higher revenue. The profit growth was mainly due to the spin-off of the tourism property business from the group, which was completed via a distribution in specie on December 22, 2025. The financial performance of the tourism property business has been deconsolidated from the group's financial statements since the completion date, resulting in the divestment of a persistently loss-making segment. Additionally, the growth in revenue from the group's tourist attractions and related businesses contributed to the improved profitability.
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