Press Room
Trading Update Shows Strong Growth
Et-china.com International Holdings Limited, the leading travel services group in the fast growing region of South China, announces its first trading update* on its progress since it commenced trading on AIM on 3 August 2007.
The Group delivered a strong trading performance in the three months to 30 September 2007 on the back of a continued buoyant Chinese travel market with a particularly good performance from the GZL tour operations which achieved revenue for the three months that equalled half of its 2006 total.
Overall Group gross revenue for the three months to 30 September 2007 amounted to RMB 849 million (£55.46 million**), net revenue was RMB 623 million (£40.69 million) and gross profit was RMB 55.32 million (£3.61 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 as well as a twenty four hour call centre, achieved a total transaction value, or gross revenue, of RMB 721 million (£47.09 million) for the three months to 30 September and net revenue of RMB 603 million (£39.38 million). Gross profit was RMB 52 million for the third quarter of the year. These represent increases of 58.54%, 55.48% and 52.6% respectively over the same period of 2006.
For the nine months to 30 September 2007, GZL served approximately 750,000 package tour travellers generating net revenue of RMB 1,241 million (£81.06 million), an increase of 41% over the corresponding 9 month period last year and exceeding the performance of GZL in the whole of 2006. Gross profit was RMB 111 million for the nine months to 30 September 2007, a 45% increase of the same period last year. Whilst the percentage split of travel destinations remained broadly similar to the prior year; being 50% outbound, 45% domestic and 5% inbound, the absolute number of inbound travellers has increased in the period under review, reflecting the Group's effort to increase inbound visitors, especially from Japan and Korea.
In the same three month period, the Et-china Limited subsidiary ("Et-china"), which is primarily focused on the frequent independent traveller and corporate account markets, also achieved sound growth. Gross revenue amounted to RMB 128 million (£8.37 million), net revenue was RMB 19.96 million (£1.3 million) and gross profit was RMB 3.37 million (£0.22 million) in the three months to 30 September 2007 representing growth of 7%, 146% and 16% respectively over the same period of 2006. For the nine months to 30 September 2007, Et-china achieved gross revenue of RMB 348 million (£22.70 million), net revenue of RMB 46 million (£3.03 million) and gross profit was RMB 8.84 million (£0.58 million). The decline in gross revenue of 8% against same period last year reflects Et-china's strategic decision to focus on sales through its own channels rather than through sub-agents, with the corresponding positive impact on net turnover, up 142% and gross profit, up 30% over the corresponding nine period last year.
In July and August 2007 the e-ticketing business, a joint venture with China's largest airline, China Southern Airlines, achieved a 43% increase in total transaction value and 38% increase in net revenue over the corresponding two month period in 2006. Total transaction value was RMB 1,981 million (£129.39 million) and net revenue RMB 5.7 million (£0.37 million).
Matthew Ng, President and Chief Executive Officer, commented: "We have achieved excellent growth in the third quarter of the calendar year and with the strong growth of the Chinese economy we are looking forward to a strong year of tourism growth for 2007 and beyond."
* All numbers in the trading update are unaudited. This statement follows the announcement on 1 October 2007 of the interim results covering the period from 29 May 2007 to 30 June 2007 for Et-china.com International Holdings Limited which did not reflect the trading of the Company's subsidiaries, principally Et-china Limited and GZL International Travel Service Limited, which were acquired by the Company conditional on admission to AIM and therefore occurred post the interim period end.
** Currency in this release is converted on the basis of GB£1 = RMB 15.3083
Contact details for enquiries:
| Et-china.com International Holdings Limited | 0207 067 0700 |
| Matthew Ng | |
| Seymour Pierce, Nominated Adviser and Broker | 0207 107 8000 |
| Mark Percy | |
| Weber Shandwick Financial | 0207 067 0700 |
|
Terry Garrett Stephanie Badjonat John Moriarty |