China Travel HK swings to HK$282 million loss in 2025 after property spin-off; proposes HK1 cent final dividend

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China Travel International Investment Hong Kong Limited (China Travel HK, 00308) reported a loss attributable to shareholders of HK$282.07 million for the year ended 31 December 2025, reversing a profit of HK$105.97 million in 2024. The downturn reflects a HK$502.89 million loss from discontinued operations following the December 2025 distribution in specie of its tourism property arm, CTG Wellness Retreat Holding.

Consolidated revenue from continuing operations slipped 2.2% year on year to HK$4.08 billion. Gross profit fell 19.4% to HK$1.21 billion, while profit before tax from continuing operations declined 33.2% to HK$374.11 million. Profit from continuing operations closed at HK$230.67 million, down 36.0%.

Segment performance diverged:

• Tourist attraction & related operations generated HK$1.88 billion revenue (-0.4%) and HK$86.67 million attributable profit (-48.3%). Theme parks saw revenue fall 13% to HK$520 million, with profit sliding 81% to HK$12 million. Natural and cultural scenic spots contributed HK$1.27 billion revenue (-2%) and HK$65 million profit (-41%). Newly consolidated leisure-resort assets, including Jilin’s Songhua Lake and Beijing’s Wan Bingxue, delivered HK$93 million revenue and HK$10 million profit.

• Travel document & related services posted HK$279.58 million revenue (-18.7%) and HK$111.23 million profit (-36.8%) as demand normalised after the 2024 post-pandemic surge.

• Hotel operations achieved HK$887.20 million revenue (+8.2%) but attributable profit eased 9.9% to HK$203.99 million. Average occupancy for the Hong Kong and Macau portfolio rose to 96%, while Beijing Metropark Hotel averaged 77% occupancy.

• Passenger transportation revenue contracted 7.9% to HK$1.01 billion, yet the segment returned to profitability with HK$2.49 million attributable profit versus a HK$10.51 million loss in 2024.

The group booked a HK$183.14 million fair-value loss on investment properties and recognised HK$90.58 million impairment on PPE and HK$110.78 million impairment on an associate. Capex totalled HK$1.92 billion, driven by scenic-spot upgrades and new resort acquisitions.

Post-spin-off, total assets fell 25.3% to HK$18.33 billion. Cash and bank balances increased 22.4% to HK$2.99 billion, while total borrowings and intra-group loans stood at HK$2.40 billion, leaving net cash of HK$0.59 billion. The debt-to-equity ratio was 39%.

The Board proposes a final dividend of HK1 cent per share, payable on 30 June 2026 subject to shareholder approval. In 2025 the company also executed a special dividend via distribution in specie of CTG Wellness shares valued at HK$4.88 billion.

Management stated that visitor volumes and revenue at tourist attractions grew more than 20% year on year in January–February 2026. Strategic priorities under the 15th Five-Year Plan include expansion into winter-sports resorts, IP-driven theme-park upgrades, continued digital transformation and disciplined capital deployment following the property business spin-off.

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