Financial Performance - Total revenues decreased by 3.6%, from RMB 4041.8 million in 2024 1H to RMB 3894.5 million in 2025 1H[28] - Aviation information technology services revenue increased by 2.1%, from RMB 2265.0 million in 2024 1H to RMB 2313.4 million in 2025 1H[33] - Settlement and clearing services revenue increased by 12.4%, from RMB 278.0 million in 2024 1H to RMB 312.5 million in 2025 1H[33] - System integration services revenue decreased significantly by 38.5%, from RMB 679.8 million in 2024 1H to RMB 418.4 million in 2025 1H[33] - Income from technical support and products increased by 30.4%, from RMB 295.3 million in 2024 1H to RMB 385.0 million in 2025 1H[33] - Other income decreased by 10.2%, from RMB 307.2 million in 2024 1H to RMB 275.7 million in 2025 1H[33] - Total operating expenses decreased by 4.2%, from RMB 2535.3 million in 2024 1H to RMB 2427.9 million in 2025 1H[41] Operational Data - Total volume processed by the systems increased by 5.31% compared to 2024 1H and increased by 9.91% compared to 2019 1H[12] - The processing volume of China Airlines' system handled by China Aviation Information Corporation is about 360 million people, a year-on-year increase of 5.5% and a year-on-year increase of 12.5% compared to the same period in 2019[17] Future Investments - The company's capital expenditure commitment amounted to approximately RMB 1518.7 million as of June 30, 2025[47] - The relevant budget for Beijing Shunyi Park Phase II is approximately RMB 938.0 million, and the total expenditures for Shunyi Phase II Project not exceeding RMB 1032.0 million[51]

Core Viewpoint - The performance of China Civil Aviation Information Network in the first half of 2025 shows growth in several core business indicators against the backdrop of a record high in the civil aviation passenger market. However, challenges such as a decline in foreign airline business processing volume, cost control pressures, and adjustments in business structure warrant attention [1]. Group 1: Core Business Growth - The electronic travel distribution system processed approximately 370.7 million passengers, a year-on-year increase of 5.3%, primarily driven by strong performance from domestic airlines, with processing volume for Chinese airlines up by 5.5% [3]. - The company has solidified its monopoly position in the domestic aviation tourism information technology solutions market, but the processing volume for foreign and regional airlines decreased by 7.8%, indicating challenges in international business expansion [3]. - The self-developed universal self-service check-in system is used in 240 major domestic and international airports, with online check-in services applied in 360 airports, processing approximately 239.6 million outbound passengers [3]. Group 2: Settlement and Clearing Business Growth - The settlement and clearing business became a highlight in the first half of the year, with approximately 628.4 million transactions processed, a year-on-year increase of 3.7%, and agency settlement amounts exceeding 35.61 billion RMB, a significant increase of 20.0% [4]. - The growth in settlement amounts outpaced transaction volume growth, indicating a notable increase in the average transaction value [4]. - The company has optimized its third-generation passenger revenue management platform in line with IATA's new distribution capability standards, successfully integrating with 11 airlines [4]. Group 3: Technology Innovation and Commercialization Challenges - The company has made significant investments in technology innovation, with a cumulative total of 19 signed clients for digital retail middle platform solutions and 29 airlines served by the enterprise-level data middle platform [6]. - The company is actively exploring emerging technologies such as artificial intelligence, blockchain, and digital currency, with the low-altitude economy business collaboration platform signing its first user [6]. - However, the commercialization level and profitability contribution of these technology innovation projects remain unclear, posing a challenge for the company to convert its technological advantages into market competitiveness and economic benefits [6].

Core Viewpoint - The report from CICC maintains the profit forecast for China Civil Aviation Information Network (00696) at 2.327 billion yuan for 2025 and 2.581 billion yuan for 2026, with a target price of 13 HKD, indicating a potential upside of 10.2% from the current stock price [1]. Group 1: Financial Performance - In 1H25, the company's revenue was 3.895 billion yuan, a year-on-year decline of 3.6%, while the net profit attributable to the parent company was 1.448 billion yuan, a year-on-year increase of 5.9%, aligning with market expectations [1]. - The company's AIT business revenue grew by 2.1% year-on-year, with total bookings increasing by 5.3%. However, the processing volume for foreign and regional airlines decreased by 7.8% [2]. - Operating costs decreased by 4.2% year-on-year, primarily due to a 17.6% decline in depreciation costs and a 52.1% drop in sales costs for integration business [3]. Group 2: Business Segments - The system integration business saw a significant revenue decline of 38.5%, negatively impacting overall revenue growth due to project construction progress [2]. - The settlement business, data network, and technical support revenues grew by 12.4%, declined by 12.4%, and increased by 30.4% respectively in 1H25 [2]. Group 3: Investment Opportunities - The company holds a 20.66% stake in China Aviation Information Technology Co., Ltd., which operates the "Travel Companion" app. The app recently launched a "Civil Aviation Official Direct Sales Platform" feature, allowing users to compare and purchase tickets from multiple airlines without agent fees [4]. - It is recommended to monitor the user activity changes of the "Travel Companion" app and its potential impact on commercialization [4].

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 15.60 [1][5]. Core Views - The company reported a slight increase in profit, with a 5.9% year-on-year growth in net profit to RMB 1.448 billion, despite a 3.6% decline in revenue to RMB 3.895 billion in the first half of 2025 [1][4]. - The growth in the aviation information technology (AIT) processing volume by 5.3% indicates a steady increase in demand for civil aviation travel in China, which is expected to continue driving the company's profitability [1][2]. - The company is well-positioned to benefit from the long-term growth in civil aviation demand and its established leadership in the aviation information sector [1][5]. Summary by Sections Financial Performance - In 1H25, the company's revenue was RMB 3.895 billion, down 3.6% year-on-year, while net profit attributable to shareholders was RMB 1.448 billion, up 5.9% [1][4]. - The AIT business revenue increased by 2.1% to RMB 2.313 billion, while technical support and product revenue surged by 30.4% to RMB 385 million, indicating potential new growth drivers [2]. Business Segments - The system integration business saw a significant decline in revenue, down 38.5% to RMB 418 million, primarily due to project completion timing and a high base from the previous year [3]. - Data network business revenue decreased by 12.4% to RMB 190 million, affected by high usage base from some customers [3]. Cost and Profitability - Total operating costs decreased by 4.2% to RMB 2.428 billion, with a notable reduction in sales costs related to integration business, which fell by 52.1% to RMB 201 million [4]. - The company managed to achieve a slight decline in operating profit of 2.6% to RMB 1.467 billion, but the recovery of credit impairment losses contributed positively to net profit growth [4]. Profit Forecast and Valuation - The company’s net profit forecasts for 2025-2027 have been slightly adjusted to RMB 2.194 billion, RMB 2.476 billion, and RMB 2.776 billion respectively, with corresponding EPS estimates of RMB 0.75, RMB 0.85, and RMB 0.95 [5][10]. - The target price of HKD 15.60 is based on a PE ratio of 19 times the 2025 estimated EPS [5].

Core Viewpoint - The report from CICC maintains the profit forecast for China Civil Aviation Information Network (00696) at 2.327 billion yuan for 2025 and 2.581 billion yuan for 2026, with a target price of 13 HKD, indicating a potential upside of 10.2% from the current stock price [1]. Group 1: Financial Performance - In 1H25, the company's revenue was 3.895 billion yuan, a year-on-year decline of 3.6%, while the net profit attributable to shareholders was 1.448 billion yuan, a year-on-year increase of 5.9%, aligning with market expectations [1]. - The company's operating costs decreased by 4.2% year-on-year, primarily due to a 17.6% decline in depreciation costs and a 52.1% drop in sales costs related to integration business [3]. - The company recognized a net reversal of credit impairment losses of 177 million yuan in 1H25, compared to 66 million yuan in 1H24, attributed to improved customer payments and a reduction in accounts receivable bad debt [3]. Group 2: Business Segments - The AIT business showed stable performance with a revenue growth of 2.1% in 1H25, while the total booking volume increased by 5.3% [2]. - The processing volume for Chinese airlines grew by 5.5% in 1H25, but the processing volume for foreign and regional airlines declined by 7.8%, indicating a slower recovery [2]. - The system integration business experienced a significant revenue decline of 38.5%, negatively impacting overall revenue growth due to project construction progress [2]. Group 3: Strategic Focus - The company holds a 20.66% stake in China Aviation Information Technology Co., Ltd., which operates the "Travel Companion" app, recently launching a "Civil Aviation Official Direct Sales Platform" feature [4]. - The app allows users to compare and purchase tickets from multiple airlines on a single interface without charging ticket agency fees, suggesting potential for increased user engagement and commercialization [4].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][13]. Core Views - The company reported total revenue of 3.89 billion yuan for H1 2025, a year-on-year decrease of 3.6%. The gross margin was 58.8%, down 0.8 percentage points year-on-year. The net profit attributable to shareholders was 1.45 billion yuan, an increase of 5.9% year-on-year, with a net profit margin of 37.2%, up 3.3 percentage points year-on-year [2]. - The company is expected to achieve net profits of 2.3 billion yuan, 2.5 billion yuan, and 2.7 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 14X, 13X, and 12X [4]. Financial Performance Summary - For 2025, the company is projected to have total revenue of 9.11 billion yuan, with a growth rate of 3.27%. The net profit is expected to be 2.3 billion yuan, reflecting a growth rate of 10.75% [9]. - The company’s revenue breakdown includes: - Aviation information technology services revenue of 2.31 billion yuan, up 2% year-on-year - Settlement and clearing revenue of 310 million yuan, up 12% year-on-year - System integration services revenue of 420 million yuan, down 38% year-on-year - Data network revenue of 190 million yuan, down 12% year-on-year - Technical support and product revenue of 380 million yuan, up 30% year-on-year - Other revenue of 280 million yuan, down 10% year-on-year [10]. - The company’s operating data for H1 2025 shows a total processing volume of 360 million passengers for Chinese airlines, a year-on-year increase of 5.5% [10].

Core Insights - China Civil Aviation Information Network (00696) reported a total revenue of 3.8945 billion yuan for the first half of 2025, representing a year-on-year decrease of 3.64% [1] - The net profit attributable to shareholders was approximately 1.448 billion yuan, showing a year-on-year increase of 5.88% [1] - Basic earnings per share were reported at 0.49 yuan [1] Revenue Analysis - The decline in total revenue is attributed to various factors affecting the aviation sector [1] - Despite the revenue drop, the company experienced stable growth in aviation information technology service income [1] - Improved cash collection further contributed to the net profit increase [1]

Core Insights - The company reported total operating revenue of 3.8945 billion yuan for the first half of 2025, representing a year-on-year decrease of 3.64% [1] - The net profit attributable to shareholders of the parent company was approximately 1.448 billion yuan, showing a year-on-year increase of 5.88% [1] - Basic earnings per share stood at 0.49 yuan [1] Revenue Analysis - The decline in total operating revenue is attributed to various market conditions affecting the aviation sector [1] - Despite the revenue drop, the company experienced stable growth in aviation information technology service income [1] Profitability Factors - The increase in net profit is primarily due to improved collection of receivables, indicating better cash flow management [1] - The company's focus on enhancing service offerings in the aviation information technology sector contributed to profitability [1]

格隆汇8月21日丨中国民航信息网络(00696.HK)公告，集团2025年上半年总收入为人民币3,894.5百万 元，较2024年上半年的人民币4,041.8百万元，减少了人民币147.3百万元或3.6%。2025年上半年，集团 利润总额为人民币1,677.9百万元，较2024年上半年的人民币1,605.7百万元，增加了约4.5%。公司归属 于母公司股东的净利润为人民币1,447.7百万元，较2024年上半年的人民币1,367.2百万元，增加了约 5.9%。 ...

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) This is the unaudited interim results announcement of TravelSky Technology Limited (Stock Code: 00696) for the six months ended June 30, 2025, prepared in accordance with China Accounting Standards for Business Enterprises - This announcement is the unaudited interim results for the six months ended June 30, 2025[2](index=2&type=chunk) - The financial statements are prepared in accordance with the China Accounting Standards for Business Enterprises[2](index=2&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group's total operating revenue was RMB 3,894.5 million, with a net profit of RMB 1,448.8 million and basic earnings per share of RMB 0.49 Key Data from Consolidated Income Statement (For the six months ended June 30, 2025, RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Total Operating Revenue | 3,894,500 | 4,041,791 | | Total Operating Costs | 2,427,877 | 2,535,291 | | Operating Profit | 1,689,988 | 1,613,656 | | Profit Before Tax | 1,677,920 | 1,605,722 | | Net Profit | 1,448,783 | 1,376,815 | | Net Profit Attributable to Shareholders of the Parent Company | 1,447,651 | 1,367,221 | | Basic Earnings Per Share (RMB/Share) | 0.49 | 0.47 | | Diluted Earnings Per Share (RMB/Share) | 0.49 | 0.47 | - **Net profit attributable to shareholders of the parent company increased by 5.9%** year-on-year to RMB 1,447,651 thousand[3](index=3&type=chunk) [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the Group's total assets reached RMB 32,121.5 million, an increase of approximately 8.1% from the end of the previous year, with total liabilities at RMB 8,445.1 million Key Data from Consolidated Balance Sheet (As of June 30, 2025, RMB'000) | Item | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | **Assets** | | | | Total Current Assets | 23,384,427 | 20,498,211 | | Total Non-current Assets | 8,737,037 | 9,196,434 | | Total Assets | 32,121,464 | 29,694,646 | | **Liabilities and Equity** | | | | Total Current Liabilities | 7,707,128 | 6,724,716 | | Total Non-current Liabilities | 737,944 | 72,944 | | Total Liabilities | 8,445,071 | 6,797,660 | | Total Equity | 23,676,393 | 22,896,986 | | Total Liabilities and Equity | 32,121,464 | 29,694,646 | - **Total assets increased by approximately 8.1%** compared to the end of the previous year[5](index=5&type=chunk)[6](index=6&type=chunk) - **Total current liabilities increased by 14.6%** year-on-year, while **total non-current liabilities surged by 911.7%**[7](index=7&type=chunk) [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) [Basic Information of the Company](index=8&type=section&id=Basic%20Information%20of%20the%20Company) The company, incorporated in Beijing on October 18, 2000, provides IT services for the aviation industry, with its ultimate controlling entity being the State-owned Assets Supervision and Administration Commission of the State Council - The company was incorporated in Beijing on October 18, 2000, with a total issued share capital of 2,926,209,589 shares[9](index=9&type=chunk) - Principal activities include air passenger service processing, electronic travel distribution, airport passenger processing, air cargo data processing, and internet travel platform services[9](index=9&type=chunk) - The ultimate controlling entity is the State-owned Assets Supervision and Administration Commission of the State Council of the PRC[9](index=9&type=chunk) [Basis of Preparation of Financial Statements](index=8&type=section&id=Basis%20of%20Preparation%20of%20Financial%20Statements) The interim results are prepared in accordance with China Accounting Standards for Business Enterprises on a going concern basis and comply with Hong Kong's disclosure requirements - The financial statements are prepared in accordance with the China Accounting Standards for Business Enterprises issued by the Ministry of Finance of the PRC[11](index=11&type=chunk) - The statements comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance[11](index=11&type=chunk) - The financial statements are prepared on a going concern basis[12](index=12&type=chunk) [Changes in Accounting Policies](index=9&type=section&id=Changes%20in%20Accounting%20Policies) There were no changes in accounting policies during the reporting period - There were no changes in accounting policies during the period[13](index=13&type=chunk) [Taxation](index=9&type=section&id=Taxation) The Group is subject to VAT, Urban Maintenance and Construction Tax, and Corporate Income Tax, enjoying a preferential rate of 15% as a "High and New Technology Enterprise" and a further reduced rate of 10% as a "Key Software Enterprise" Major Taxes and Tax Rates | Tax Type | Applicable Rate (%) | | :--- | :--- | | Value-added Tax (VAT) | 3.00–23.00 | | Urban Maintenance and Construction Tax | 5.00, 7.00 | | Corporate Income Tax | 8.25–25.00 | - The company is recognized as a "High and New Technology Enterprise" and is entitled to a **preferential Corporate Income Tax rate of 15%**, valid until 2025[15](index=15&type=chunk) - The company is recognized as a "Key Software Enterprise" and is entitled to a **further reduced preferential tax rate of 10%**, with the difference to be refunded subsequently[16](index=16&type=chunk) [Notes to Key Items in the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Key%20Items%20in%20the%20Consolidated%20Financial%20Statements) This section details key financial statement items, including receivables, investments, payables, revenue composition, and earnings per share, providing comparative data against prior periods [Accounts Receivable](index=11&type=section&id=Accounts%20Receivable) As of June 30, 2025, total accounts receivable were RMB 5,331.2 million, with provisions for bad debts totaling RMB 930.1 million Aging Analysis of Accounts Receivable (RMB'000) | Aging | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | Within 1 year | 4,148,447 | 4,364,621 | | 1 to 2 years | 1,235,590 | 886,221 | | 2 to 3 years | 342,556 | 402,296 | | Over 3 years | 434,794 | 407,659 | | Subtotal | 6,261,288 | 6,060,796 | | Less: Provision for bad debts | 930,067 | 1,101,521 | | Total | 5,331,221 | 4,959,275 | Analysis of Accounts Receivable by Provision Method (As of period-end, RMB'000) | Category | Carrying Amount | Proportion (%) | Provision for Bad Debts | Provision Rate (%) | Book Value | | :--- | :--- | :--- | :--- | :--- | :--- | | Individually assessed | 871,967 | 13.93 | 589,703 | 67.63 | 282,264 | | Collectively assessed | 5,389,321 | 86.07 | 340,364 | 6.32 | 5,048,957 | | Total | 6,261,288 | 100.00 | 930,067 | | 5,331,221 | [Other Equity Instrument Investments](index=12&type=section&id=Other%20Equity%20Instrument%20Investments) The Group holds a 13.26% stake in China Merchants Renhe Life Insurance, with a fair value of RMB 1,043.8 million, designated as a financial asset at FVTOCI Details of Other Equity Instrument Investments (RMB'000) | Item | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | China Merchants Renhe Life Insurance Co, Ltd | 1,043,827 | 1,004,312 | | Total | 1,043,827 | 1,004,312 | - Holds a **13.26% equity interest** in China Merchants Renhe Life Insurance Co, Ltd, with a fair value of **RMB 1,043,827 thousand**[22](index=22&type=chunk) - The investment is designated as a financial asset at fair value through other comprehensive income (FVTOCI)[22](index=22&type=chunk) [Other Non-current Financial Assets](index=13&type=section&id=Other%20Non-current%20Financial%20Assets) The Group's investment in CMSC Equity Fund has a carrying amount of RMB 996.9 million, with a focus on the 5G and information communication industry chain Details of Other Non-current Financial Assets (RMB'000) | Item | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 996,867 | 1,017,412 | | Of which: Equity instrument investments | 996,867 | 1,017,412 | | Total | 996,867 | 1,017,412 | - This asset represents an investment in CMSC Equity Fund, with a paid-in capital of **RMB 852,175 thousand** and a carrying amount of **RMB 996,867 thousand**[23](index=23&type=chunk) - CMSC Equity Fund primarily invests in companies related to the 5G and information communication industry chain[23](index=23&type=chunk) [Accounts Payable](index=14&type=section&id=Accounts%20Payable) As of June 30, 2025, total accounts payable were RMB 2,209.3 million, a slight increase from the previous year-end, with balances aged within one year accounting for 60.5% Details of Accounts Payable (RMB'000) | Aging | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | Within 1 year (inclusive) | 1,335,823 | 1,549,348 | | 1–2 years (inclusive) | 620,571 | 340,986 | | 2–3 years (inclusive) | 135,545 | 186,807 | | Over 3 years | 117,341 | 110,259 | | Total | 2,209,280 | 2,187,400 | [Contract Liabilities](index=14&type=section&id=Contract%20Liabilities) As of June 30, 2025, contract liabilities amounted to RMB 815.5 million, an increase of 26.3% from the previous year-end, primarily from system integration services Details of Contract Liabilities (RMB'000) | Item | Closing Balance | Prior Year-End Balance | | :--- | :--- | :--- | | Contracts for system integration services, etc | 815,475 | 645,608 | | Total | 815,475 | 645,608 | [Revenue and Cost of Sales](index=15&type=section&id=Revenue%20and%20Cost%20of%20Sales) For the six months ended June 30, 2025, the Group's revenue was RMB 3,894.5 million and cost of sales was RMB 1,606.5 million, with system integration service revenue declining significantly Revenue and Cost of Sales (RMB'000) | Item | Current Period Revenue | Current Period Cost | Prior Period Revenue | Prior Period Cost | | :--- | :--- | :--- | :--- | :--- | | Main business | 3,881,068 | 1,601,054 | 4,020,211 | 1,628,051 | | Other business | 13,431 | 5,472 | 21,581 | 6,072 | | Total | 3,894,500 | 1,606,526 | 4,041,791 | 1,634,123 | Breakdown of Revenue (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Aviation information technology services | 2,313,440 | 2,265,033 | | Settlement and clearing services | 312,470 | 277,972 | | System integration services | 418,355 | 679,849 | | Data network services | 189,533 | 216,410 | | Technical support and product revenue | 384,961 | 295,310 | | Other revenue | 275,742 | 307,218 | | Total | 3,894,500 | 4,041,791 | - **Revenue from system integration services decreased by 38.5% year-on-year**, mainly affected by the progress of project construction[25](index=25&type=chunk) [Investment Income](index=16&type=section&id=Investment%20Income) For the six months ended June 30, 2025, total investment income was RMB 28.7 million, a decrease from the prior period due to lower returns from trading financial assets Details of Investment Income (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Income from long-term equity investments under the equity method | 11,043 | 2,121 | | Investment income from disposal of long-term equity investments | 115 | 7,673 | | Investment income from trading financial assets during the holding period | 8,859 | 29,540 | | Interest income from debt investments during the holding period | 8,697 | — | | Total | 28,714 | 39,335 | [Credit Impairment Losses](index=16&type=section&id=Credit%20Impairment%20Losses) For the six months ended June 30, 2025, credit impairment losses were RMB 176.5 million, a significant increase from the prior period mainly due to higher bad debt losses on accounts receivable Details of Credit Impairment Losses (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Bad debt losses on notes receivable | 5,637 | 7,791 | | Bad debt losses on accounts receivable | 170,908 | 57,873 | | Total | 176,545 | 65,664 | [Asset Impairment Losses](index=17&type=section&id=Asset%20Impairment%20Losses) For the six months ended June 30, 2025, asset impairment losses amounted to RMB 2.1 million, primarily related to contract assets Details of Asset Impairment Losses (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Impairment losses on contract assets | 2,069 | –6,021 | | Total | 2,069 | –6,021 | [Earnings Per Share](index=17&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share were RMB 0.49, an increase from RMB 0.47 in the prior period Earnings Per Share Calculation | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Profit (RMB'000) | 1,447,651 | 1,367,221 | | Number of shares ('000 shares) | 2,926,210 | 2,926,210 | | Earnings per share (basic and diluted) | 0.49 | 0.47 | [Dividend Distribution](index=17&type=section&id=Dividend%20Distribution) A final cash dividend of RMB 0.239 per share for 2024, totaling RMB 699.4 million, was approved and recorded as a distribution of retained earnings - The final cash dividend for 2024 was **RMB 0.239 per share** (tax inclusive), totaling **RMB 699,364 thousand**[28](index=28&type=chunk) - This dividend was recognized in shareholders' equity for the six months ended June 30, 2025, as a distribution of retained earnings[28](index=28&type=chunk) [Asset Disposal](index=18&type=section&id=Asset%20Disposal) For the six months ended June 30, 2025, the Group recorded a gain on asset disposal of RMB 2.7 million, mainly from the disposal of right-of-use assets - Gain on disposal of assets amounted to **RMB 2,734 thousand**[29](index=29&type=chunk) - This primarily includes a gain of RMB 2,770 thousand from the disposal of right-of-use assets (lease modification gain) and a loss of RMB 36 thousand from office and electronic equipment[29](index=29&type=chunk) [Supplementary Information to the Income Statement by Nature of Expense](index=18&type=section&id=Supplementary%20Information%20to%20the%20Income%20Statement%20by%20Nature%20of%20Expense) For the six months ended June 30, 2025, staff costs were RMB 968.2 million and depreciation and amortization were RMB 438.1 million, with system integration sales costs decreasing by 52.1% Expenses by Nature (RMB'000) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Staff costs | 968,206 | 937,785 | | Depreciation and amortization | 438,094 | 531,602 | | Cost of sales for integration business | 200,792 | 418,795 | | Technical support and maintenance fees | 285,498 | 286,074 | | Departure and distribution support fees | 307,218 | 303,275 | | Network usage fees | 42,631 | 44,190 | | Finance costs | –55,907 | –78,654 | | Other operating costs | 196,526 | 47,556 | | Total | 2,383,057 | 2,490,623 | - **Cost of sales for integration business decreased by 52.1%**, mainly affected by the progress of system integration projects[30](index=30&type=chunk) - **Depreciation and amortization decreased by 17.6%**, mainly because certain fixed assets and intangible assets were fully depreciated or amortized[30](index=30&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) [Business Review for the First Half of 2025](index=19&type=section&id=Business%20Review%20for%20the%20First%20Half%20of%202025) In H1 2025, the Group capitalized on the civil aviation market recovery, advanced its core businesses, enhanced innovation, and strategically entered emerging industries like AI and the low-altitude economy - The civil aviation passenger market hit a new record high, with both domestic and international passenger volumes surpassing the same period in 2019[31](index=31&type=chunk) - The Electronic Travel Distribution (ETD) system processed approximately **370.7 million passengers** for domestic and foreign airlines, a **year-on-year increase of 5.3%**[32](index=32&type=chunk) - The settlement and clearing system handled approximately **628.4 million transactions**, up **3.7% year-on-year**, with settled revenue exceeding **RMB 35.61 billion**, a **20.0% increase**[34](index=34&type=chunk) - Actively participated in smart airport construction projects and promoted new-generation departure front-end systems, facial recognition travel platforms, and full-process baggage tracking systems[36](index=36&type=chunk) - Expanded value-added data center services, upgraded cargo terminal production systems, and developed applications for the "Aviation-Travel Chain" blockchain and digital RMB payments[37](index=37&type=chunk) - Ensured stable operation of mainframe and open platform systems with an availability rate exceeding **99.99%** and expanded data center resources[38](index=38&type=chunk) - Led research into AI applications for the civil aviation industry and actively developed the low-altitude economy sector, signing the first user for its collaborative platform[39](index=39&type=chunk) [Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Overview](index=23&type=section&id=Overview) In H1 2025, the Group's profit before tax grew 4.5% to RMB 1,677.9 million, and net profit attributable to shareholders rose 5.9% to RMB 1,447.7 million, driven by stable revenue growth and improved collections - **Profit before tax was RMB 1,677.9 million**, an increase of approximately **4.5%** compared to H1 2024[40](index=40&type=chunk) - **Net profit attributable to shareholders of the parent company was RMB 1,447.7 million**, an increase of approximately **5.9%** compared to H1 2024[40](index=40&type=chunk) - The profit growth was mainly attributable to stable revenue growth from aviation information technology services and improved collection of payments[40](index=40&type=chunk) [Total Revenue](index=23&type=section&id=Total%20Revenue) Total revenue for H1 2025 was RMB 3,894.5 million, a 3.6% decrease year-on-year, impacted by a significant 38.5% decline in system integration service revenue despite growth in other segments - **Total revenue was RMB 3,894.5 million**, a **year-on-year decrease of 3.6%**[41](index=41&type=chunk) Revenue Changes by Business Segment (RMB million) | Business Segment | H1 2025 | H1 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Aviation information technology services | 2,313.4 | 2,265.0 | +2.1% | | Settlement and clearing services | 312.5 | 278.0 | +12.4% | | System integration services | 418.4 | 679.8 | -38.5% | | Data network services | 189.5 | 216.4 | -12.4% | | Technical support and product revenue | 385.0 | 295.3 | +30.4% | | Other revenue | 275.7 | 307.2 | -10.2% | - The decrease in system integration service revenue was mainly affected by the progress of project construction[42](index=42&type=chunk) [Total Operating Costs](index=25&type=section&id=Total%20Operating%20Costs) Total operating costs for H1 2025 decreased by 4.2% to RMB 2,427.9 million, driven by a 52.1% reduction in integration business sales costs and a 17.6% drop in depreciation and amortization - **Total operating costs were RMB 2,427.9 million**, a **year-on-year decrease of 4.2%**[44](index=44&type=chunk) - **Credit impairment losses were RMB -176.5 million**, mainly due to improved payment collection from certain customers, resulting in a decrease in the provision for bad debts on accounts receivable[44](index=44&type=chunk) Changes in Major Cost Items | Cost Item | Change Rate | | :--- | :--- | | Staff costs | +3.2% | | Depreciation and amortization | -17.6% | | Cost of sales for integration business | -52.1% | | Technical support and maintenance fees | -0.2% | | Departure and distribution support fees | +1.3% | [Corporate Income Tax](index=26&type=section&id=Corporate%20Income%20Tax) The company accrued corporate income tax for H1 2025 at a preferential rate of 15% as a "High and New Technology Enterprise" and is eligible for a further reduced rate of 10% as a "Key Software Enterprise" - The company accrued corporate income tax for H1 2025 at a **preferential rate of 15%** due to its "High and New Technology Enterprise" status[46](index=46&type=chunk) - The company has been recognized as a "Key Software Enterprise" from 2006 to 2024, entitling it to a **10% preferential tax rate**, with the difference to be refunded subsequently[46](index=46&type=chunk) [Net Profit Attributable to Shareholders of the Parent Company](index=26&type=section&id=Net%20Profit%20Attributable%20to%20Shareholders%20of%20the%20Parent%20Company) Net profit attributable to shareholders of the parent company increased by RMB 80.4 million, from RMB 1,367.2 million in H1 2024 to RMB 1,447.7 million in H1 2025 - Net profit attributable to shareholders of the parent company **increased by RMB 80.4 million year-on-year** to **RMB 1,447.7 million**[48](index=48&type=chunk) [Liquidity and Capital Structure](index=27&type=section&id=Liquidity%20and%20Capital%20Structure) [Liquidity and Capital Structure](index=27&type=section&id=Liquidity%20and%20Capital%20Structure) In H1 2025, the Group generated a net cash inflow from operating activities of RMB 1,314.8 million, holding cash and cash equivalents of RMB 6,621.2 million against total borrowings of RMB 1,396.1 million - **Net cash inflow from operating activities was RMB 1,314.8 million**[49](index=49&type=chunk) - **Total borrowings amounted to RMB 1,396.1 million**, comprising short-term bank loans of RMB 924.6 million and entrusted loans of RMB 471.5 million[49](index=49&type=chunk) - **Cash and cash equivalents stood at RMB 6,621.2 million**, of which 95.3% was denominated in RMB[49](index=49&type=chunk) [Restricted Bank Deposits](index=27&type=section&id=Restricted%20Bank%20Deposits) As of June 30, 2025, restricted bank deposits totaled RMB 1,821.6 million, primarily consisting of provisions for customers' payments used as performance guarantees for settlement-related businesses - Restricted bank deposits amounted to **RMB 1,821.6 million**, of which **RMB 1,794.3 million** was provisions for customers' payments[50](index=50&type=chunk) - These funds are mainly held in designated accounts as performance guarantees for settlement-related businesses[50](index=50&type=chunk) [Entrusted Deposits and Irrecoverable Overdue Time Deposits](index=27&type=section&id=Entrusted%20Deposits%20and%20Irrecoverable%20Overdue%20Time%20Deposits) As of June 30, 2025, the Group had no entrusted deposits or irrecoverable overdue time deposits - The Group had no entrusted deposits or irrecoverable overdue time deposits[51](index=51&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=Foreign%20Exchange%20Risk) The Group's foreign exchange risk arises from commercial transactions and assets and liabilities denominated in foreign currencies, with potential impacts from RMB exchange rate fluctuations - Foreign exchange risk arises from commercial transactions and assets and liabilities denominated in foreign currencies[52](index=52&type=chunk) - Fluctuations in the exchange rate of RMB against foreign currencies may affect operating results[52](index=52&type=chunk) [Investment in Financial Assets](index=27&type=section&id=Investment%20in%20Financial%20Assets) The Group prudently invests in principal-protected wealth management products with returns higher than bank deposit rates, including structured deposits, certificates of deposit, and equity funds - The Group's fund management strategy typically involves selecting principal-protected wealth management products with interest rates higher than bank deposits to maximize returns[53](index=53&type=chunk) [Trading Financial Assets](index=28&type=section&id=Trading%20Financial%20Assets) As of June 30, 2025, the Group held structured bank deposits totaling RMB 6,000 million with annual interest rates ranging from 0.45% to 2.30% - Held structured bank deposits totaling **RMB 6,000 million**, with annual interest rates of **0.45%–2.30%** and tenors of 92 to 186 days[54](index=54&type=chunk) [Financial Assets at Amortized Cost](index=28&type=section&id=Financial%20Assets%20at%20Amortized%20Cost) As of June 30, 2025, the Group held certificates of deposit totaling RMB 670 million and reverse repurchase agreements of RMB 1,000 million - Held certificates of deposit totaling **RMB 670 million**, with annual interest rates of **1.75%–3.10%** and tenors of 365 to 1,097 days[55](index=55&type=chunk) - Held reverse repurchase agreements of **RMB 1,000 million** with an annualized interest rate of **1.66%** and a tenor of 28 days[55](index=55&type=chunk) [Financial Assets at Fair Value through Other Comprehensive Income](index=28&type=section&id=Financial%20Assets%20at%20Fair%20Value%20through%20Other%20Comprehensive%20Income) The Group holds a 13.26% stake in China Merchants Renhe Life Insurance, with a fair value of RMB 1,043.8 million as of June 30, 2025 Investment in China Merchants Renhe Life Insurance (RMB'000) | Investment Name | Shareholding (%) | Fair Value as at June 30, 2025 | Fair Value as at Dec 31, 2024 | Gain for the six months ended June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | China Merchants Renhe Life | 13.26 | 1,043,827 | 1,004,312 | 39,515 | - China Merchants Renhe Life Insurance recorded a **profit of RMB 173.33 million** in H1 2025[57](index=57&type=chunk) - The insurer will continue to promote product transformation and strengthen asset-liability management around its strategic initiatives[59](index=59&type=chunk) [Financial Assets at Fair Value through Profit or Loss](index=30&type=section&id=Financial%20Assets%20at%20Fair%20Value%20through%20Profit%20or%20Loss) The Group has made a capital contribution of RMB 852.2 million to the CMSC Equity Fund, which invests in the 5G industry and information communication supply chain - A capital contribution of **RMB 852.2 million** has been made to the CMSC Equity Fund[60](index=60&type=chunk) - The CMSC Equity Fund primarily invests in companies related to 5G industry applications and the information communication industry chain[60](index=60&type=chunk) [Pledge of Assets](index=31&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledged assets - The Group had no pledged assets[61](index=61&type=chunk) [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - The Group had no material contingent liabilities[62](index=62&type=chunk) [Gearing Ratio](index=31&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 26.3%, an increase from 22.9% at the end of 2024 - The gearing ratio was **26.3%** (December 31, 2024: 22.9%)[63](index=63&type=chunk) [Progress in Data Resource Capitalization](index=31&type=section&id=Progress%20in%20Data%20Resource%20Capitalization) During the period, the Group did not recognize any new data resources as intangible assets, with the existing balance reported at RMB 20.2 million - No new data resources were recognized as intangible assets during the period[64](index=64&type=chunk) - The financial statements report "Intangible assets – of which: data resources" at **RMB 20.2 million**[64](index=64&type=chunk) [Significant Investment or Financing Plans](index=31&type=section&id=Significant%20Investment%20or%20Financing%20Plans) The Group had no significant acquisitions, disposals, or investment plans as of June 30, 2025, with capital expenditure in H1 2025 totaling RMB 133.8 million - As of June 30, 2025, the Group had no significant acquisitions, disposals, or plans for major investments or capital asset purchases[65](index=65&type=chunk) - Total capital expenditure for H1 2025 was **RMB 133.8 million** (H1 2024: RMB 141.5 million)[65](index=65&type=chunk) - Capital expenditure commitments amounted to approximately **RMB 1,518.7 million**, mainly for operations, system maintenance, and R&D upgrades[65](index=65&type=chunk) [Employees](index=32&type=section&id=Employees) As of June 30, 2025, the Group had 6,740 employees, with staff costs for H1 2025 amounting to RMB 968.2 million, representing 39.9% of total operating costs - As of June 30, 2025, the Group had a total of **6,740 employees**[67](index=67&type=chunk) - Staff costs for H1 2025 were approximately **RMB 968.2 million**, accounting for about **39.9% of total operating costs**[67](index=67&type=chunk) - Total enterprise annuity expenses were approximately **RMB 47.3 million** (H1 2024: RMB 40.9 million)[67](index=67&type=chunk) [Subsequent Events](index=32&type=section&id=Subsequent%20Events) [Subsequent Events](index=32&type=section&id=Subsequent%20Events) In July and August 2025, the company received a tax refund of RMB 89.7 million related to its "Key Software Enterprise" status, with no other significant events to disclose - In July and August 2025, the company received a tax refund of **RMB 89.7 million** related to its "Key Software Enterprise" status[68](index=68&type=chunk) - There were no other significant events to disclose from June 30, 2025, to the date of this announcement[68](index=68&type=chunk) [Outlook and Dividend Policy](index=33&type=section&id=Outlook%20and%20Dividend%20Policy) [Outlook for the Second Half of 2025](index=33&type=section&id=Outlook%20for%20the%20Second%20Half%20of%202025) For H2 2025, the Group will focus on high-quality development, technology-led innovation, strengthening its industrial position, and accelerating its layout in strategic emerging industries - In H2, the focus will be on high-quality development, strengthening technology-led innovation, and enhancing industrial control capabilities[69](index=69&type=chunk) - The Group will accelerate its layout in strategic emerging industries, cultivate new quality productive forces, and consolidate its core business advantages[69](index=69&type=chunk) [Interim Dividend](index=33&type=section&id=Interim%20Dividend) The Board of Directors has recommended not to declare an interim dividend for the first half of 2025 - The Board of Directors recommended **no interim dividend** for the first half of 2025[70](index=70&type=chunk) [Purchase, Sale or Redemption of Securities](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Securities) The company and its subsidiaries did not purchase, sell, or redeem any of its listed securities during the first half of 2025 and held no treasury shares - In H1 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities[71](index=71&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[71](index=71&type=chunk) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) The company adheres to high standards of corporate governance but has two deviations from the code provisions: the concurrent roles of Chairman and CEO and a delayed board election - The company has adopted the code provisions in the Corporate Governance Code and Corporate Governance Report in Appendix C1 to the Listing Rules[72](index=72&type=chunk) - **Deviation from code provision C.2.1**: The roles of Chairman and Chief Executive Officer are held by the same individual as a transitional arrangement[72](index=72&type=chunk) - **Deviation from code provision B.2.2**: The re-election of the Board of Directors has been postponed but will not affect normal operations[73](index=73&type=chunk) - Apart from the above deviations, the company fully complied with all other code provisions during H1 2025[73](index=73&type=chunk) [Audit and Risk Management Committee (Supervisory Committee)](index=35&type=section&id=Audit%20and%20Risk%20Management%20Committee%20(Supervisory%20Committee)) The Audit and Risk Management Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and discussed related matters - The Audit and Risk Management Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[75](index=75&type=chunk) - The committee discussed matters including internal control, risk management, and financial reporting[75](index=75&type=chunk) [Other Information](index=35&type=section&id=Other%20Information) [Publication of Interim Results on the Internet](index=35&type=section&id=Publication%20of%20Interim%20Results%20on%20the%20Internet) This results announcement is available on the websites of Hong Kong Exchanges and Clearing Limited and the company - This results announcement is available on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company's website (www.travelskyir.com)[76](index=76&type=chunk) [Board of Directors](index=35&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises one executive director, three non-executive directors, three independent non-executive directors, and one employee representative director - Executive Director: Mr. Huang Rongshun (Chairman)[78](index=78&type=chunk) - Non-executive Directors: Mr. Sun Yuquan, Mr. Qu Guangji, and Ms. He Xiaoqun[78](index=78&type=chunk) - Independent Non-executive Directors: Mr. Liu Zehong, Mr. Chan Wing Tak, and Mr. Xu Hongzhi[78](index=78&type=chunk) - Employee Representative Director: Ms. Liang Shuang[77](index=77&type=chunk)