After divesting its real estate business, CHINA TRAVEL HK is expected to achieve double-digit revenue growth this year, focusing on three major tourism sectors

The chairman of CHINA TRAVEL HK (308), Wu Qiang, stated that 2026 will be the starting year for the new five-year strategy. With the complete unloading of the real estate business burden, the annual revenue is expected to achieve double-digit growth, mainly driven by the ice and snow business and new key projects. Wu Qiang emphasized that the group is no longer involved in the real estate business and will focus on three major areas in the next five years: natural and cultural scenic spots, theme parks, and leisure resorts, striving to achieve an average annual compound growth of no less than 10% in revenue and profit by 2030, with the ice and snow sector expected to double its revenue. Ice and Snow Sector Becomes Growth Point, Expected to Add Over 100 Million in Revenue for the Year The group's Chief Financial Officer, Zhang Daorong, stated that the ice and snow sector will become the core growth point this year, with an expected addition of at least 100 million in revenue for the year. The Songhua Lake Resort has maintained a double-digit growth momentum in the first two months, along with the launch of the Qinghai Heishishan project this year and the continuous advancement of four major regional circular reserve projects, which will continue to contribute to revenue. Hong Kong Business to Steadily Contribute 30 Million in Revenue The Hong Kong business is also performing well. Zhang Daorong pointed out that cross-border transportation revenue has increased by 9% this year, with profits up by 6%; the occupancy rate of its hotels remains above 87%, and the average room rate continues to improve, with an expected stable contribution of about 30 million in revenue for the year. He further stated that the short-term pressure on scenic area business is gradually being digested, and the travel document business is expected to stabilize this year. The group will fully focus on three core businesses, driving transformation and upgrading through IP and technology. Last Year Turned Loss of 280 Million, Proposed Final Dividend of 1 Cent CHINA TRAVEL HK reported a loss of 282 million in 2025, compared to a net profit of 106 million in the same period of 2024, mainly due to one-time impairments from the divestment of the tourism real estate business, reclassification of foreign exchange differences, and a decline in the fair value of investment properties. During the period, revenue was 4.076 billion, a year-on-year decrease of 2.2%; the board of directors proposed a final dividend of 1 cent per share, while a mid-term dividend of 1.5 cents was distributed in 2024, resulting in an annual dividend decrease of 33.3% when excluding the impact of physical distribution factors. In terms of segment performance, scenic area revenue remained flat at 1.88 billion, with theme parks experiencing a revenue decrease of 76 million due to weather and competition. The leisure resort sector benefited from the acquisition of Songhua Lake Resort, adding 93 million in revenue, with winter tourist numbers reaching 148,000, driving a 12% increase in sector revenue. Hotel revenue increased by 8% to 887 million; travel document business revenue decreased by 19% year-on-year to 280 million; passenger transport business revenue fell by 8% to 1.007 billion, with road services reaching a five-year high, while shipping services saw a 14% decline in passenger volume due to road diversion. Wu Qiang stated that this year will focus on advancing the Qinghai-Gansu deep space theme, the western Yunnan experience hub, and aerospace cultural tourism projects, upgrading Hong Kong passenger transport and island tourism, and creating a second growth curve driven by technology