Et-china.com International Holdings Limited
Financial statements
for the year ended 31 December 2007
Chairman’s Statement
I am pleased to announce the Group’s first full year results since it joined the AIM
market in August 2007. It has been a year in which the Company has made significant
progress, on a number of fronts, as it builds upon its established position as the
leading travel services provider in South China.
Results
The Group delivered a strong trading performance for the whole of 2007, benefiting
from the buoyant Chinese travel market with a particularly good performance from its
GZL tour operating business which became a subsidiary in April 2007.
Overall Group revenue for 2007 amounted to RMB1,291.6 million (£88.6 million)
and gross profit was RMB114.6 million (£7.9 million). However, these results only
include an 8 month contribution from GZL. To provide a more representative
picture of the enlarged Group’s underlying performance proforma information has
been provided as if the Group had existed in its current form throughout the period.
The pro-forma figures show revenue of RMB1,709 million (£117 million) and a gross
profit of RMB 163 million (£11 million).
The loss after income tax for the period was RMB 50.4 million (£3.5 million),
including costs of RMB 20.8 million (£1.4 million) in relation to the IPO. The stated
loss before income tax is RMB 43.3 million. While no direct comparable numbers
are available for the Group the two main operating subsidiaries are significantly ahead
of their 2006 results as independent businesses.
GZL, which is one of the largest travel package holiday providers in South China
providing tour packages through 160 high street stores and a 24x7 call centre, served
approximately 1 million package tour travellers generating proforma net revenue of
RMB 1,643million (£112.7 million), an increase of 39% over the corresponding
period last year. Proforma gross profit was RMB 148 million(£10 million), a 36%
increase over last year. Since becoming a subsidiary in April 2007, the Group’s share
of the revenue and gross profit respectively were RMB 1,226.4million (£84 million)
and RMB 100million (£6.8million). Whilst the percentage split of travel destinations
remained broadly similar to the prior year; being 51% outbound, 41% domestic and
5% inbound, the absolute number of inbound travellers has increased, reflecting the
Group's continued effort to attract additional visitors, particularly from Japan and
Korea.
In 2007, the Et-china Limited subsidiary ("Et-china"), which is primarily focused on
the frequent independent traveller (“FIT”) and corporate account markets, also
achieved strong growth. Gross revenue increased to RMB 446 million (£30.6 million),
