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Tongcheng Travel announces record growth and strategic milestones in 2023

Online Travel

Tongcheng Travel Holdings Limited celebrates a year of significant financial growth and user engagement, setting new industry standards.

HONG KONG SAR – Tongcheng Travel Holdings Limited , an innovator and leader in China ‘s online travel industry, announced its audited consolidated results for the year ended 31 December 2023.

2023 Results Highlights with Year-on-year (yoy) Change

  • Robust Financial Growth with Revenues Reaching New Highs
  • Revenue increased by 80.7% yoy to RMB11.9 billion, representing a 60.9% increase compared to 2019.
  • Adjusted EBITDA increased yoy by 117.4% to RMB3.12 billion; adjusted EBITDA margin increased by 4.5 percentage points to 26.3%. Adjusted EBITDA increased by 54.8% compared to 2019.
  • Adjusted net profit increased by 240.3% to RMB2.2 billion; adjusted net margin increased by 8.7 percentage points to 18.5%. Adjusted net profit increased by 42.4% compared to 2019.
  • The Board recommended payment of a final dividend of HK15 cents per share.

Committed to Penetrating Non-first-tier Markets

  • Average monthly paying users for 2023 rose by 39.1% to 41.3 million.
  • Annual paying users grew by 25.2% to a historic high of 234.7 million.
  • 72.7% of new paying users on the Weixin platform were from non-first-tier cities.
  • Registered users residing in non-first-tier cities accounted for 86.9% of the total registered users.

Major Businesses Recorded Strong Demand Rebound, Surpassing the Levels in 2019

  • Transportation ticketing services revenue rose by 78.5% to RMB6.03 billion, representing a 33.5% increase compared 2019.
  • Accommodation reservation services revenue rose by 61.5% to RMB3.90 billion, representing a 65.4% increase compared to 2019.
  • Revenue from others* increased by 148.6% to RMB1,996.7 million, representing a 280.3% increase compared to 2019.

* Revenue from others mainly includes revenues generated from (i) tourism services; (ii) advertising services; (iii) hotel management services; (iv) corporate travel services and (v) ancillary value-added user services.

In 2023, Tongcheng Travel capitalized on growth opportunities and outperformed the market with remarkable results. The Group’s total revenue amounted to RMB 11.90 billion. Adjusted net profit reached RMB2.20 billion, representing a significant yoy increase of 240.3%, with an adjusted net profit margin of 18.5%. In 2023, the Group’s average monthly paying users rose by 39.1% to 41.3 million and the annual paying users grew by 25.5% to 234.7 million. Gross merchandise volume achieved a record high and increased by 96.8% yoy to RMB241.5 billion.

Mr. Ma Heping , Executive Director and Chief Executive Officer of Tongcheng Travel, said, “China’s tourism industry achieved exceptional recovery momentum in 2023, which is set to continue into 2024. The Group’s revenue recorded robust growth to a record high in the year under review, surpassing the same period in 2019. The Group will continue to penetrate the domestic market to gain more market shares. Significant progress has been achieved in our hotel management and packaged tour businesses which will pave the way to a second growth trajectory. Furthermore, the resumption of international market development will bring new opportunities for business expansion going forward.”

Developing into a New Generation National Travel Platform to Propel APUs to New High

To expand its traffic sources, the Group continued to pursue various channels in both online and offline scenarios such as maintaining stable and effective traffic within the WeChat Mini Program and deepening strategic cooperation with Tencent. The Group explored various scenarios within the Tencent ecosystem to expand the user reach and made consistent efforts to refine the operations to enhance user acquisition efficiency. To attract young users, the Group collaborated with Tencent Games and launched e-Sports activities. It also optimized the entry point interfaces on QQ Browser and Weixin Search platform to deliver better user experience.

The Group also increased efforts in operating its mini-program on Alipay and explored the potential of the ecosystem. Moreover, it continued the partnership with a prominent handset vendor, offering its users convenient and reliable services for transportation ticketing and accommodation reservations. Simultaneously, the Group persisted in developing offline user acquisition channels. Throughout 2023, the Group was dedicated to crafting marketing strategies with creativity. It initiated a variety of innovative marketing campaigns, such as e-sports games, open-door marketplace and music festivals, to strengthen bonding with younger users.

As the coverage of service scenarios expands and users’ trust level increases, Tongcheng Travel has gradually grown into the “New Generation National Travel Platform”. During the period under review, the Group’s average monthly paying users for 2023 increased by 39.1% yoy to 41.3 million, representing a 53.5% increase compared to 2019. Annual paying users increased by 25.2% year-to-year to a historic high 234.7 million, representing a 54.0% increase compared to 2019.

Core Businesses Delivered Solid Growth while Other Businesses Expanded Rapidly

The Group’s revenue from transportation ticketing services increased by 78.5% yoy to RMB6.03 billion in the period under review, mainly driven by the strong rebound in demand for transportation ticketing services. For the fourth quarter of 2023, the group’s air ticket volume increased by over 16% compared to the same period of 2019, far exceeding the overall industry performance. The Group’s train ticketing business experienced a revenue growth that outpaced the increase in business volume, due to the strategic shifts to monetization enhancement. Moreover, Tongcheng Travel capitalized on the opportunities arising from the surge in local and short-haul travel demand and enhanced the operations of its bus and car-hailing businesses.

The Group’s accommodation business exhibited robust growth in both business volume and revenue. During the period under review, the revenue from the accommodation business increased by 61.5% yoy to RMB3.90 billion. In 2023Q4, the domestic room nights sold registered more than 70% growth compared with the same period of 2019 and the international room nights sold had fully recovered to the level in 2019.

Besides, the Group is committed to achieving business diversification. Other businesses include tourism, advertising, hotel management, corporate travel, and ancillary value-added user services. Revenue from other businesses increased by 148.6% yoy to RMB1.97 billion, representing a 280.3% increase compared to 2019. The proportion of other businesses revenue segments in total revenue has continued to increase, rising by 9.5 percentage points from 7% in 2019 to 16.5% in 2023. The increase in other revenue is mainly attributed to the Group’s further development of its tourism services, advertising services, and hotel management services.

Integrating Intelligent Travel with Sustainable Development to Shape the Future of the Tourism Industry

To ensure a gratifying experience for users, the Group has improved the intelligent Huixing system, which offers customized travel solutions according to their preferences. For customer services, the Group has persistently applied Artificial Intelligence Generated Content (AIGC) to improve efficiency and quality. In 2023Q4, the Group signed a strategic agreement with Chengdu Shuangliu Airport, aiming to collaborate in establishing the airport as a regional transit hub. Tongcheng Travel also partnered with Changbai Mountain to develop an intelligent tourist service platform that consolidates local tourism information. Additionally, the Group has built a comprehensive portfolio of PMS brands to offer Software-as-a-Service (SaaS) solutions to more individual and chain hotels as well as alternative accommodation to enhance their daily operation efficiency.

Tongcheng Tavel intensified efforts to improve its ESG performance and has attained remarkable results. The Group’s MSCI ESG rating received AA rating for the second consecutive year in 2023 and was successfully included in The Sustainability Yearbook (China) 2023 by S&P Global. As a socially responsible enterprise, Tongcheng Travel is committed to supporting the sustainable development of the travel industry. The Group continued its contribution to the rural revitalization through projects such as the “Lindu Warm Village”. It has also launched a training program on digital operation and marketing of rural tourism for tourism professionals to foster the growth of the rural economy. Moreover, the Group is focused on the well-being of the community it serves. It cooperated with various hotels in China throughout the year, initiated a hotel alliance “Tongcheng Shelter”, to offer complimentary supplies and resting areas to users under diverse scenarios, such as during the college admission exam season and in response to extreme weather conditions in China.

China’s travel industry has obtained astonishing recovery momentum, driven by diversified travel demand. This trend will continue into 2024. Looking ahead, the Group will continue to leverage its competitive strengths, including its solid market position, diverse traffic sources and advanced technological capabilities. The Group will focus on enhancing user loyalty and value, while broadening the user base. The Group will intensify efforts to enrich and refine products and services, thereby enhancing the user experience. In addition, the Group is committed to leveraging technology to transition from an OTA to an ITA. It will actively seek investment opportunities in line with its strategic objectives to foster future growth. It will integrate corporate governance, environmental protection and social responsibility into its operations and create long-term sustainable value for stakeholders.

tongcheng travel annual report

Theodore Koumelis

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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Tongcheng travel holdings limited (tngcf).

  • Previous Close 0.0000
  • Open 2.4500
  • Ask 1.8800 x --
  • Day's Range 2.4500 - 2.4500
  • 52 Week Range 2.2840 - 2.7000
  • Avg. Volume 3
  • Market Cap (intraday) 5.756B
  • Beta (5Y Monthly) 0.57
  • PE Ratio (TTM) 22.84
  • EPS (TTM) 0.1000
  • Earnings Date Nov 19, 2024 - Nov 25, 2024
  • Forward Dividend & Yield 0.02 (0.84%)
  • Ex-Dividend Date Jun 28, 2024
  • 1y Target Est --

Tongcheng Travel Holdings Limited Overview Travel Services / Consumer Cyclical

Tongcheng Travel Holdings Limited, an investment holding company, provides travel related services in the People's Republic of China. The company offers transportation ticketing, accommodation reservation, attraction ticketing, and various ancillary value-added products and services. It offers platform service of hotel business; and hotel management, business process outsourcing, information technology outsourcing, advertising, and insurance agency services. The company provides travel products and services through its tencent-based online platforms, mobile apps, and websites. The company was formerly known as Tongcheng-Elong Holdings Limited and changed its name to Tongcheng Travel Holdings Limited in November 2021. Tongcheng Travel Holdings Limited was founded in 1999 and is headquartered in Suzhou, the People's Republic of China.

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December 31

Fiscal Year Ends

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Tongcheng Travel: revenues hit record high in transportation and accommodations in Q2

tongcheng travel annual report

The operating revenue of Tongcheng Travel, a travel agency based in Suzhou, Jiangsu province, was approximately 2.86 billion yuan ($393 million) in the second quarter of this year, seeing an increase of 117.4 percent on a yearly basis, according to the Q2 financial data released on Tuesday.

It mainly comes from accommodation booking business and transportation ticketing business. During the period, the revenue generated from transportation ticketing services was 1.49 billion yuan, marking a record high with an increase of 141.2 percent on a yearly basis, and an increase of 59.5 percent compared to the same period of 2019.

Data showed that during the second quarter, the transaction volume of Tongcheng Travel reached 59.7 billion yuan, up 145.7 percent on a yearly basis.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rocketed 175.8 percent, going from 292 million yuan to 806 million yuan compared to the same period last year. The adjusted EBITDA margin increased from 22.2 percent to 28.1 percent.

Adjusted net profit grew from 112 million yuan to 592 million yuan, seeing an increase of 428.9 percent on a yearly basis.

Tongcheng Travel pointed out in the report that the demand in the tourism market in China has increased significantly, and showed a trend of accelerating growth quarter by quarter.

The national tourism boom was further unleashed during the holiday, adding vitality to the industry.

Tongcheng Travel also said they remain highly optimistic about China's tourism industry as there is still ample room for the development of tourism-related infrastructure, especially in sinking markets, and the tourism market is expected to continue to grow significantly.

In addition, the authority has introduced a number of policies to promote China's tourism industry and encourage domestic tourism consumption.

The fundamental shifts in consumer behavior, such as the growing popularity of short trips and local holidays, will also be an additional thrust to drive the industry going forward.

tongcheng travel annual report

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Tencent-invested Tongcheng Travel reports 48% rise in Q2 revenue

Annual paying users reach 230 million.

tongcheng travel annual report

Tongcheng Travel, an online travel company backed by Tencent and Trip.com Group, said that its GMV increased by 4.4% in the second quarter this year. Total revenue increased by 48.1% to RMB 4,245.4 million for the quarter.

The adjusted net profit was RMB656.7 million and RMB1,215.2 million for the three and six months respectively, representing adjusted net margins of 15.5% and 15.0%, respectively.

Through effective user acquisition initiatives and efficient engagement programs, Tongcheng has established an extensive user base in China’s OTA industry. For the twelve-month ended June 30, 2024, the APUs increased by 4.8% year-to-year and reached 228.3 million.

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tongcheng travel annual report

Tongcheng Travel Achieves Revenue of CNY 6.58 Bn in 2022, Down 12.6% YoY

The post-pandemic era is coming. Is the travel market on track for a revival?

Travel

On March 21, Tongcheng Travel (Chinese: 同程旅行, 0790: HK) announced its fourth-quarter and full-year audited consolidated results for 2022. According to the report, Tongcheng Travel achieved revenue of CNY 6.58 billion, which narrowed by 12.6% year-to-year from CNY 7.54 billion in 2021.

The company also reported an adjusted EBITDA of CNY 1.44 billion, a decrease of 24.6% year-to-year from CNY 1.91 billion in 2021, and an adjusted net profit of CNY 646 million, a decrease of 50.6% from CNY 1.3 billion on a yearly basis. Meanwhile, the average MAUs (monthly active users) dropped 9.0% year-to-year from 256.9 million in 2021 to 233.8 million in 2022.

Tongcheng Travel stated that the double-digit decline in both revenue and net profit in 2022 continues to show the negative impacts caused by the pandemic. Still, the company achieved outstanding business performance and received notable market recognition.

In 2022, the number of APUs (annual paying users) reached 190 million, up 23% from 2019. With the increasing online booking rate of Chinese travelers and the structural changes in consumer demand, Tongcheng Travel quickly captures the opportunity and penetrates its service scene into lower-tier markets.

Ma Heping, CEO of Tongcheng Travel, expressed great confidence in business in the post-pandemic era. He said: "Entering 2023, people's enthusiasm for travel is improving significantly, and pent-up travel demand is being greatly released. So we will further increase investment in the lower-tier markets and supply side. At the same time, we will continue to provide users with the ultimate travel experience, create greater value for partners, and contribute to constructing a better society."

According to the report, in the past three years, Tongcheng Travel has maintained a steady development of its business by relying on its core development strategy, flexible and efficient operation strategy and deep exploration of the tourism supply chain, which has laid a solid foundation for the company to grasp the opportunities of an industry rebound in the post-pandemic era and the transformation from OTA (online travel agent) to ITA (intelligent travel assistant).

Its competitors include Ctrip (TCOM:NASDAQ; 9961:HK), Fliggy, Meituan, etc. As of press time, it closed at HKD 16.68 apiece, with a market cap of HKD 37.43 billion.

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Stock 780

Tongcheng Travel Holdings Limited

Kyg8918w1069, latest news about tongcheng travel holdings limited, chart tongcheng travel holdings limited.

Chart Tongcheng Travel Holdings Limited

Company Profile

Logo Tongcheng Travel Holdings Limited

Income Statement and Estimates

Quarterly earnings, rate of surprise.

  • Stock Market
  • News Tongcheng Travel Holdings Limited
  • Transcript : Tongcheng Travel Holdings Limited, Q2 2024 Earnings Call, Aug 20, 2024

IMAGES

  1. EMT and TongCheng: 2024 Chinese Outbound Travel Demand Forecast Report

    tongcheng travel annual report

  2. Tongcheng Travel Achieves Record High Results in 2023 Revenue Reaches

    tongcheng travel annual report

  3. Euroland

    tongcheng travel annual report

  4. Tongcheng Travel reports stable user growth in 2022 Q3 amid COVID

    tongcheng travel annual report

  5. 2024 Chinese Outbound Travel Demand Forecast

    tongcheng travel annual report

  6. Tongcheng Travel: revenues hit record high in transportation and

    tongcheng travel annual report

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COMMENTS

  1. Tongcheng Travel

    2024-04-26: 2023 Annual Report: Download : 2023-09-12: 2023 Interim Report: Download : 2023-04-26: 2022 Annual Report: Download : 2022-09-09: 2022 Interim Report

  2. Tongcheng Travel

    Tongcheng Travel Investor Relations. 86-512-80717992. 备案序号:苏ICP备09033604号 | Developed by Euroland IR | Developed by Euroland IR

  3. Tongcheng Travel

    2023-08-22. 2023 Second Quarter and Interim Results. Download Webcast. 2023-05-24. 2023 First Quarter Results. Download Webcast. 2023-03-21. 2022 Fourth Quarter and Annual Results. Download Webcast.

  4. Tongcheng Travel Holdings Ltd. Annual Income Statement

    Fiscal year is January-December. All values HKD Millions. 2023 2022 2021 2020 2019 5-year trend; Sales/Revenue: 13,145: 7,657: 9,084: 6,666: 8,383

  5. Tongcheng Travel announces record growth and strategic milestones in

    HONG KONG SAR - Tongcheng Travel Holdings Limited, an innovator and leader in China's online travel industry, announced its audited consolidated results for the year ended 31 December 2023. 2023 Results Highlights with Year-on-year (yoy) Change. Robust Financial Growth with Revenues Reaching New Highs; Revenue increased by 80.7% yoy to RMB11.9 billion, representing a 60.9% increase ...

  6. Tongcheng Travel Holdings Ltd. Annual Income Statement

    Tongcheng Travel Holdings Ltd. Fiscal year is January-December. All values HKD Millions. Tongcheng Travel Holdings Ltd. annual income statement. View 780.HK financial statements in full, including ...

  7. PDF Tongcheng Travel Holdings Limited 同程旅行控股有限公司

    Tongcheng Travel Holdings Limited 同程旅行控股有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 0780) ANNOUNCEMENT OF THE RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 The Board of the Company is pleased to announce the unaudited consolidated results of the Group

  8. Tongcheng Travel Holdings Ltd. Financial Statements

    Tongcheng Travel Holdings Ltd. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. ... Annual; Net Income. 0 2B. Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun ...

  9. PDF Tongcheng Travel Holdings Limited 同程旅行控股有限公司

    r accommodation business also witnessed substantial development. For the three months ended March 31, 2023, our revenue from accommodation business increased by 53.6% year-to-y. ar from RMB543.1 million to the record high of RMB834.3 million. Our room nights sold also witnessed a record-breaking peak and obtained ove.

  10. PDF Tongcheng Travel Holdings Limited 同程旅行控股有限公司

    People's Republic of China. Tongcheng Travel Holdings Limited ( 同程旅行控股有限公司) (formerly known as Tongcheng-Elong Holdings Limited (同程藝龍控股有限公司)), an exempted company with limited liability incorporated under the laws of the Cayman Islands on January 14, 2016 "Consolidated Affiliated Entities ...

  11. Tencent-backed Tongcheng Travel's revenue rises over 80% in 2023

    Tongcheng Travel, a Hong Kong-listed online travel company jointly invested by Tencent and Trip.com Group, said its revenue increased by 109.6% year-to-year to RMB3,145 million in the fourth quarter of 2023 from RMB1,500 million in the same period of 2022. Average monthly paying users (MPUs) increased by 54.3% year-to-year from 24.3 million in ...

  12. Tongcheng Travel Holdings Ltd

    Tongcheng had about 5% revenue exposure to international travel prepandemic, but expects a 10%-15% increase year on year in 2024 given recent approval for visa-free travel to Southeast Asia and it ...

  13. Tongcheng Travel

    News Center. August 20, 2024 Tongcheng Travel Announces 2024 Interim Results. May 22, 2024 Tongcheng Travel Announces 2024 First Quarter Results. March 19, 2024 Tongcheng Travel Announces 2023 Annual Results. November 21, 2023 Tongcheng Travel Announces 2023 Third Quarter Results. August 23, 2023 Tongcheng Travel Announces 2023 Interim Results.

  14. Tongcheng Travel Holdings Limited (TNGCF)

    Find the latest Tongcheng Travel Holdings Limited (TNGCF) stock quote, history, news and other vital information to help you with your stock trading and investing. ... Periodic Financial Reports ...

  15. Tongcheng Travel: revenues hit record high in transportation and

    The operating revenue of online traveling supplier Tongcheng travel was approximately 2.86 billion yuan ($393 million), seeing an increase of 117.4 percent on a yearly basis; operating data showed ...

  16. Tongcheng Travel Holdings Limited Stock

    Sep. 10. MT. Jefferies Adjusts Tongcheng Travel Holdings' Price Target to HK$21.50 From HK$28.20, Keeps at Buy. Aug. 21. MT. HSBC Upgrades Tongcheng Travel Holding to Buy From Hold; Price Target is HK$17. Aug. 21. MT. UOB Kay Hian Downgrades Tongcheng Travel Holdings to Hold From Buy; Price Target is HK$14.

  17. PDF Tongcheng Travel Holdings Limited 同程旅行控股有限公司

    Tongcheng Travel Holdings Limited ... or to be issued by the Company including but not limited to (a) the directors' report, where applicable, the ESG report, the annual accounts together with a copy of the auditors' report and, where applicable, the summary financial report; (b) the interim report and, where applicable, the summary interim ...

  18. Tencent-invested Tongcheng Travel reports 48% rise in Q2 revenue

    Tongcheng Travel, an online travel company backed by Tencent and Trip.com Group, said that its GMV increased by 4.4% in the second quarter this year. Total revenue increased by 48.1% to RMB 4,245.4 million for the quarter. The adjusted net profit was RMB656.7 million and RMB1,215.2 million for the three and six months respectively, representing ...

  19. Tongcheng Travel Holdings

    The platform provides both online and offline services in the form of call centers. Tongcheng Travel was formed from the merger of Tongcheng Network and eLong in 2018. It is currently 21.38% owned by Tencent and 20.86% by Trip.com. Tongcheng targets lower-tier cities and as of 2021, 86.7% of its users are from non-first-tier cities in China and ...

  20. 0780.HK

    Get Tongcheng Travel Holdings Ltd (0780.HK) real-time stock quotes, news, price and financial information from Reuters to inform your trading and investments ... Annual Quarterly. Millions (HKD ...

  21. Tongcheng Travel Achieves Revenue of CNY 6.58 Bn in 2022, Down 12.6%

    On March 21, Tongcheng Travel (Chinese: 同程旅行, 0790: HK) announced its fourth-quarter and full-year audited consolidated results for 2022. According to the report, Tongcheng Travel achieved revenue of CNY 6.58 billion, which narrowed by 12.6% year-to-year from CNY 7.54 billion in 2021.

  22. Tongcheng Travel

    2023 ESG Report: Download : 2023-04-26: 2022 ESG Report: Download : 2022-04-27: 2021 ESG Report: Download : 2021-04-26: 2020 ESG Report: Download : 2020-04-27: 2019 ESG Report: Download : ... Contact Us. Customer Service. 95711. Tongcheng Travel Investor Relations. 86-512-80717992. 备案序号:苏ICP备09033604 ...

  23. Tongcheng Travel Holdings Limited

    UOB Kay Hian Downgrades Tongcheng Travel Holdings to Hold From Buy; Price Target is HK$14. Aug. 21. MT. Tongcheng Travel Shares Rise on Higher Net, Improved Outlook. Aug. 20. DJ. Tongcheng Travel Holdings Limited, Q2 2024 Earnings Call, Aug 20, 2024. Aug. 20. Tongcheng Travel Profit Jumps in Q2 as Revenue Surges 48%.