Among the 54 listed companies, the top three in terms of revenue in the first half of the year were China Duty Free with 31.265 billion yuan, Yuyuan Holdings with 27.572 billion yuan, and Trip.com with 24.677 billion yuan. The median revenue of the 54 companies was 600 million yuan, and only 4 companies had revenue exceeding 10 billion yuan. This shows that most listed tourism companies are not large in scale and are considered "small enterprises" among listed companies.

The top three in terms of net profit were Trip.com with 8.213 billion yuan, China Duty Free with 3.647 billion yuan, and Huazhu with 1.749 billion yuan. Among them, 17 companies suffered losses in the first half of the year.

In terms of year-on-year growth rate of revenue, 36 companies showed positive year-on-year growth, and 18 showed negative growth. Among them, the highest growth rates were Fengshang Culture (261%), Sanxiang Impression (233%), and Ctrip (230%). The largest revenue declines were seen in Three Gorges Tourism, Oriental Garden, and Lingnan Holdings.

In terms of net profit growth rate, 31 companies saw a year-on-year decline in net profit, accounting for 57.4%.

Comments on Various Tourism Sub-sectors

How should we view the performance of listed tourism companies in the first half of the year? In my opinion, both excessive optimism and excessive pessimism are not objective.

The current tourism market is complex and changeable. On the one hand, overall consumer confidence is low, and various businesses clearly feel that "money is harder to earn".

On the other hand, some niche sectors in the tourism industry, and some leading companies in these sectors, have shown strong growth. For example, in the online tourism sector, Trip.com's revenue and net profit in the first half of the year increased by 20% and 104% respectively, while Tongcheng Travel's revenue and net profit increased by 48% and 12% respectively, and Tuniu increased by 37% and 995% respectively. This reflects the further increase in the penetration rate of online tourism, with consumers increasingly relying on online tourism platforms to book products, and tourism businesses increasingly relying on online tourism platforms to sell products.

In the travel agency sector, the revenue and net profit of Ctrip increased by 230% and 312% respectively, while the newly restructured Kaisar Tourism increased by 40% and 87% respectively, and the parent company of Guangzhi Travel, Lingnan Holdings, increased by 52% and 24% respectively. CYTS's travel agency business also saw a significant year-on-year increase, but due to the decline in integrated marketing and chain hotel business segments, it offset the increase in the travel agency business.

The general growth of the entire travel agency sector reflects the rapid growth of the group tour market. Why is the group tour, which is not favored by the market, growing rapidly? This is mainly because the recovery of group tours after the epidemic was relatively slow. Currently, other tourism sectors have almost fully recovered, while group tours are only now entering their peak recovery period, especially in the outbound tourism sector.

Some sectors have not seen universal growth, but some excellent companies in these sectors have achieved impressive growth. For example, in the hotel sector, the performance of various companies has fluctuated, but Ado Group's revenue and net profit in the first half of the year increased by 75% and 118% respectively, with a net profit of 560 million yuan, a historical high, and the number of newly opened hotels also increased rapidly, surpassing all other hotels.

The performance of various companies in the scenic area sector is even more severely differentiated, with Songcheng Performance showing relatively good performance, with revenue and net profit increasing by 59% and 86% respectively. Its revenue and profit ranked first among listed scenic area companies, with revenue of 1.18 billion yuan and net profit of 560 million yuan, with a net profit margin as high as 47%, which is an astonishing figure in the tourism scenic area industry.

Songcheng Performance's revenue is also generated from ticket sales. The impressive results achieved in the first half of the year show that the tourism market still has a strong demand for good products. The immersive experience scenes created by Songcheng Performance are in line with the current tourists' demand for innovative experiences.

Songcheng Performance Foshan Millennium Show Scenic Area

However, Huangshan Tourism, a stable mountain-type scenic area, saw a 0.39% decline in revenue and a 33% decline in net profit in the first half of the year. Emei Mountain A, Jiuhua Tourism (Jiuhua Mountain), Lijiang Holdings (Jade Dragon Snow Mountain), and Xiyu Tourism (Tianshan Tianchi in Xinjiang) have seen little change in performance, indicating that traditional mountain tourism is facing a lack of growth momentum.

In addition, some tourism supply chain companies and comprehensive tourism groups have shown a more complex performance differentiation due to differences in their own business performance.

Overall, the phenomenon of sluggish performance among some tourism companies in the first half of the year does exist, but the performance of good sectors and good companies is still very impressive. Even during market downturns, it is more advantageous for high-quality and innovative products to seize market share.