同程旅行(00780) - 2024 - 中期业绩

Performance Announcement Summary The company achieved strong revenue growth in Q2 and H1 2024, with increased adjusted EBITDA and net profit, though margins declined, alongside steady user expansion Performance Summary for the Three Months Ended June 30, 2024 Tongcheng Travel achieved strong Q2 2024 growth with total revenue up 48.1% to RMB 4.245 billion, though adjusted EBITDA and net profit margins declined despite absolute increases Key Financial Indicators for Q2 2024 | Indicator | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 4,245,357 | 2,866,269 | 48.1% | | Adjusted EBITDA | 913,465 | 805,839 | 13.4% | | Adjusted Net Profit | 656,690 | 592,395 | 10.9% | | Adjusted EBITDA Margin | 21.5% | 28.1% | -6.6% | | Adjusted Net Profit Margin | 15.5% | 20.7% | -5.2% | | Average Monthly Paying Users (millions) | 42.5 | 42.2 | 0.7% | | Transaction Volume (RMB billions) | 62.3 | 59.7 | 4.4% | - The company updated its segment reporting structure starting Q1 2024, now divided into "Core Online Travel Platform" and "Resort" segments to better reflect business strategy and financial performance[7] Q2 2024 Segment Revenue and Operating Profit | Segment | 2024 Q2 Revenue (RMB thousands) | 2023 Q2 Revenue (RMB thousands) | 2024 Q2 Operating Profit (RMB thousands) | 2023 Q2 Operating Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Core Online Travel Platform | 3,525,959 | 2,866,269 | 858,389 | 761,094 | | Resort | 719,398 | – | 673 | – | | Total | 4,245,357 | 2,866,269 | 517,025 | 417,141 | Performance Summary for the Six Months Ended June 30, 2024 In H1 2024, the company's revenue increased by 48.8% year-on-year to RMB 8.112 billion, with growth in adjusted EBITDA and net profit, but a decline in profit margins, alongside significant increases in annual paying users and cumulative serviced passenger trips Key Financial Indicators for H1 2024 | Indicator | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 8,111,635 | 5,452,412 | 48.8% | | Adjusted EBITDA | 1,733,693 | 1,538,044 | 12.7% | | Adjusted Net Profit | 1,215,178 | 1,095,986 | 10.9% | | Adjusted EBITDA Margin | 21.4% | 28.2% | -6.8% | | Adjusted Net Profit Margin | 15.0% | 20.1% | -5.1% | | Transaction Volume (RMB billions) | 128.2 | 116.9 | 9.7% | | Average Monthly Paying Users (millions) | 42.6 | 41.8 | 1.9% | | Annual Paying Users (millions) | 228.3 | 217.9 | 4.8% | | Cumulative Serviced Passenger Trips (millions) | 1,856.4 | 1,429.2 | 29.9% | Business Review and Outlook The company capitalized on China's tourism market growth in Q2 and H1 2024, achieving significant increases in total transaction volume and revenue, while maintaining robust adjusted net profit Performance Highlights The company capitalized on China's tourism market growth in Q2 and H1 2024, achieving significant increases in total transaction volume and revenue, while maintaining robust adjusted net profit - China's tourism industry maintained growth momentum in Q2 2024, with strong travel demand driven by the pursuit of diverse and unique travel experiences[15] Q2 and H1 2024 Core Performance | Indicator | 2024 Q2 | 2024 H1 | | :--- | :--- | :--- | | Total Transaction Volume | RMB 62.3 billion (YoY growth 4.4%) | RMB 128.2 billion (YoY growth 9.7%) | | Total Revenue | RMB 4,245.4 million (YoY growth 48.1%) | RMB 8,111.6 million (YoY growth 48.8%) | | Adjusted Net Profit | RMB 656.7 million | RMB 1,215.2 million | | Adjusted Net Profit Margin | 15.5% | 15.0% | Business Review The company strengthened its mass market position, particularly in non-first-tier cities, through effective user acquisition and engagement strategies, while expanding online and offline traffic sources, enriching product offerings, and advancing international business and hotel management - For the twelve months ended June 30, 2024, annual paying users increased by 4.8% year-on-year to 228.3 million, and cumulative serviced passenger trips grew by 29.9% to 1.86 billion, with a significant increase in user purchase frequency[16] - Over 87% of registered users reside in non-first-tier cities in China, and approximately 70% of new paying users on the WeChat platform are from non-first-tier cities, solidifying the company's mass market position[16] - The company actively expanded scenarios within the WeChat ecosystem, achieved a record high in daily active users for its proprietary applications during the Labor Day holiday, deepened cooperation with mobile phone manufacturers, and advanced offline public transportation projects[17] - As a one-stop platform, it offers approximately 440,000 air routes, over 3.1 million hotels and non-standard accommodations, approximately 170,000 bus routes, over 800 ferry routes, and tickets for over 10,000 domestic tourist attractions[18] - Revenue from transportation ticketing services increased by 16.6% year-on-year to RMB 1.7427 billion, with international air ticket volume growing by over 160% year-on-year[19] - Accommodation business revenue increased by 12.8% year-on-year to RMB 1.1909 billion, with total room nights growing by 10% year-on-year and international room nights increasing by nearly 140% year-on-year[20] - Other revenue from the core online travel platform increased by 87.3% year-on-year to RMB 592.3 million, and the hotel management segment now operates approximately 1,900 hotels, with over 1,000 more in preparation[21] - Strategic partnerships were established with Capital Airports Holding Company and Shandong Province tourism scenic areas, leveraging internet expertise and technology to empower industry digital transformation[22] - The company was recognized in S&P Global's "Sustainability Yearbook (China Edition)" for two consecutive years, affirming its leadership in ESG practices[22] Business Outlook and Strategy The company remains optimistic about China's tourism industry, anticipating continued growth in the domestic market and a recovery in outbound travel driven by international flight restoration and favorable visa policies, focusing on enhancing user value, expanding international business, strengthening hotel management and resort operations, and actively seeking investment opportunities - China's domestic tourism market has maintained growth momentum since last year, with significant increases in travel demand during the summer holiday period, indicating vast untapped potential[23][25] - The company remains optimistic about the outbound tourism market, as the recovery of international flights and favorable visa policies reignite Chinese tourists' enthusiasm for overseas travel[25] - Future strategies include enhancing user value and expanding the user base of the core online travel platform, broadening the international business footprint, strengthening hotel management and resort operations, and actively seeking strategic investment opportunities[25] Management Discussion and Analysis This section provides a detailed comparison of the financial performance for Q2 2024 versus Q2 2023, covering revenue composition, cost of sales, operating expenses, and other profit and loss items, revealing the specific reasons for changes in various indicators Comparison of Q2 2024 and Q2 2023 This section provides a detailed comparison of the financial performance for Q2 2024 versus Q2 2023, covering revenue composition, cost of sales, operating expenses, and other profit and loss items, revealing the specific reasons for changes in various indicators Key Items from Condensed Consolidated Income Statement for Q2 2024 and Q2 2023 | Indicator | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 4,245,357 | 2,866,269 | | Cost of Sales | (1,501,022) | (703,284) | | Gross Profit | 2,744,335 | 2,162,985 | | Service Development Expenses | (494,281) | (427,826) | | Selling and Marketing Expenses | (1,501,710) | (1,107,860) | | Administrative Expenses | (272,193) | (207,641) | | Operating Profit | 517,025 | 417,141 | | Profit for the Period | 429,330 | 359,981 | | Profit Attributable to Equity Holders of the Company | 433,691 | 355,920 | Q2 2024 Revenue by Service Item and Segment | Service Item/Segment | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Core Online Travel Platform Total Revenue | 3,525,959 | 2,866,269 | 23.0% | | - Accommodation Reservation Services | 1,190,879 | 1,055,396 | 12.8% | | - Transportation Ticketing Services | 1,742,736 | 1,494,582 | 16.6% | | - Others | 592,344 | 316,291 | 87.3% | | Resort Revenue | 719,398 | – | N/A | | Total Revenue | 4,245,357 | 2,866,269 | 48.1% | - Cost of sales increased by 113.4% year-on-year to RMB 1.501 billion, primarily due to increased costs for purchased travel-related products, value-added user services, and employee benefits expenses[33] - Selling and marketing expenses increased by 35.6% year-on-year to RMB 1.5017 billion, mainly driven by higher advertising and promotion expenses, commission expenses, and sales employee benefits[35] - Other net losses decreased from RMB 80.1 million in Q2 2023 to RMB 14.6 million in Q2 2024, primarily due to reduced exchange losses[41] - Profit attributable to equity holders of the company increased by 21.8% year-on-year to RMB 433.7 million[43] Other Financial Information This section covers non-IFRS financial measures, liquidity, and financial resources Non-IFRS Financial Measures The company uses adjusted EBITDA and adjusted net profit for the period as non-IFRS measures to provide a more comparable assessment of core business performance, excluding non-cash or non-core business-driven items - Adjusted EBITDA is defined as adjusted operating profit, excluding non-cash or non-core items such as share-based compensation, amortization of intangible assets, depreciation, and net exchange losses[45] - Adjusted net profit for the period is defined as adjusted profit for the period, excluding items such as net share-based compensation, amortization of intangible assets acquired, and net exchange losses[45] Reconciliation of Adjusted EBITDA to Operating Profit | Indicator | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Operating Profit for the Period | 517,025 | 417,141 | 972,050 | 882,562 | | Add: Total Share-based Compensation | 107,910 | 77,954 | 222,124 | 168,613 | | Add: Amortization of Intangible Assets | 170,092 | 168,771 | 346,770 | 336,747 | | Add: Depreciation of Property, Plant and Equipment and Right-of-Use Assets | 84,815 | 52,977 | 166,306 | 104,493 | | Adjusted EBITDA | 913,465 | 805,839 | 1,733,693 | 1,538,044 | Reconciliation of Adjusted Net Profit to Profit for the Period | Indicator | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | 429,330 | 359,981 | 829,586 | 738,949 | | Add: Net Share-based Compensation | 124,001 | 79,400 | 211,817 | 184,467 | | Add: Amortization of Intangible Assets Acquired | 64,417 | 63,113 | 134,969 | 125,131 | | Adjusted Net Profit for the Period | 656,690 | 592,395 | 1,215,178 | 1,095,986 | Liquidity and Financial Resources The company primarily meets its liquidity needs through net cash from operating activities and bank borrowings; in H1 2024, cash and cash equivalents significantly increased, but net cash from operating activities decreased, and cash flows from investing and financing activities shifted - As of June 30, 2024, cash and cash equivalents amounted to RMB 7.748 billion, a significant increase from RMB 5.4047 billion at the end of 2023[53] H1 2024 Cash Flows | Cash Flow Type | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 1,294,712 | 2,271,243 | | Net Cash Flows from/(used in) Investing Activities | 576,752 | (103,243) | | Net Cash Flows from/(used in) Financing Activities | 688,029 | (317,825) | | Net Increase in Cash and Cash Equivalents | 2,559,493 | 1,850,175 | | Cash and Cash Equivalents at End of Period | 7,747,983 | 5,404,726 | - Net cash from operating activities decreased, primarily due to changes in working capital, including increases in trade receivables and prepayments[55] - Investing activities shifted from a net outflow to a net inflow, mainly due to increased net cash received from wealth management products and time deposits, offsetting expenditures for long-term equity investments and purchases of property, plant and equipment[56] - Financing activities shifted from a net outflow to a net inflow, primarily due to increased proceeds from bank loans, partially offset by repayment of bank borrowings[57] - As of June 30, 2024, the capital gearing ratio was approximately 20.3%[58] Capital Expenditures and Investments This section details capital expenditures, long-term and short-term investments, and the absence of significant acquisitions or disposals Capital Expenditures In H1 2024, the company's total capital expenditures significantly increased, primarily for the acquisition of property, plant and equipment, and long-term investments Total Capital Expenditures for H1 2024 | Item | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | | Purchase of Property, Plant and Equipment | 372,679 | 137,765 | | Purchase of Intangible Assets | 6,607 | 806 | | Long-term Investments | 574,201 | 588,022 | | Total Capital Expenditures | 953,487 | 726,593 | Long-term Investments As of June 30, 2024, total long-term investments increased, primarily due to a rise in investments accounted for using the equity method, reflecting the company's strategic investments in ecological tourism, biotechnology, resort real estate, and hotel management services Composition of Long-term Investments | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Investments Accounted for Using the Equity Method | 1,629,738 | 1,429,800 | | Investments Measured at Fair Value Through Profit or Loss | 930,476 | 1,039,294 | | Investments Measured at Amortized Cost | 1,209,082 | 683,879 | | Total Long-term Investments | 3,769,296 | 3,152,973 | - The increase in investments accounted for using the equity method is mainly due to more investments in private companies with significant influence, primarily engaged in ecological tourism, biotechnology, resort real estate, and hotel management services[63] - The overall strategy for long-term investments is to invest in or acquire businesses that can foster the company's operations and bring benefits[63] Short-term Investments Total short-term investments decreased, with a significant reduction in short-term investments measured at amortized cost and an increase in those measured at fair value through profit or loss, as the company opts for highly liquid, secure, and reasonably yielding financial products Composition of Short-term Investments | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Short-term Investments Measured at Amortized Cost | 236,901 | 2,316,753 | | Short-term Investments Measured at Fair Value Through Profit or Loss | 1,837,676 | 1,631,715 | | Total Short-term Investments | 2,074,577 | 3,948,468 | - Short-term investments measured at amortized cost primarily consist of time deposits within one year, while short-term investments measured at fair value through profit or loss include wealth management products with expected returns ranging from 1.90% to 4.58%[64] Significant Acquisitions and Disposals For the six months ended June 30, 2024, the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2024, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[65] Foreign Exchange Risk and Employees This section addresses the company's foreign exchange risk management and details its employee structure, recruitment, training, and welfare programs Foreign Exchange Risk The company manages foreign exchange risk by regularly reviewing its net foreign exchange exposure and entering into derivative contracts with financial institutions for economic hedging purposes - Foreign exchange risk arises from commercial transactions or assets and liabilities denominated in non-functional currencies, managed by the company through regular review of its net foreign exchange exposure[66] - The company enters into derivative contracts with financial institutions for economic hedging purposes, measured at fair value[66] Employees As of June 30, 2024, the company had 10,241 full-time employees, primarily located in Suzhou, Beijing, and other regions of China, implementing various recruitment, training, and incentive programs, complying with statutory employee benefits, and maintaining good employee relations - As of June 30, 2024, the company had a total of 10,241 full-time employees, with approximately 32.4% in Suzhou, 7.3% in Beijing, and 60.3% in other regions of China and overseas[67] - The company recruits through campus recruitment, recruitment agencies, and online channels, and provides management, technical, and other training[67] - The company implements various share incentive schemes and share option schemes, and participates in various statutory employee welfare plans[67] - For the six months ended June 30, 2024, the company did not experience any significant labor disputes or recruitment difficulties[67] Condensed Consolidated Financial Statements This section presents the interim condensed consolidated income statement, comprehensive income statement, statement of financial position, and cash flow statement Interim Condensed Consolidated Income Statement This income statement presents the company's revenue, costs, expenses, and ultimate profit for Q2 and H1 2024, reflecting year-on-year changes in various financial indicators Q2 and H1 2024 Condensed Consolidated Income Statement | Indicator | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 4,245,357 | 2,866,269 | 8,111,635 | 5,452,412 | | Gross Profit | 2,744,335 | 2,162,985 | 5,259,129 | 4,103,846 | | Operating Profit | 517,025 | 417,141 | 972,050 | 882,562 | | Profit for the Period | 429,330 | 359,981 | 829,586 | 738,949 | | Profit Attributable to Equity Holders of the Company | 433,691 | 355,920 | 830,325 | 733,832 | | Basic Earnings Per Share (RMB) | 0.19 | 0.16 | 0.37 | 0.33 | | Diluted Earnings Per Share (RMB) | 0.19 | 0.16 | 0.36 | 0.32 | Interim Condensed Consolidated Statement of Comprehensive Income This comprehensive income statement lists the company's profit for the period and other comprehensive income, including currency translation differences, for Q2 and H1 2024, to present overall financial performance Q2 and H1 2024 Condensed Consolidated Statement of Comprehensive Income | Indicator | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | 429,330 | 359,981 | 829,586 | 738,949 | | Other Comprehensive Income for the Period (net of tax) | 1,748 | 51,233 | 1,118 | 37,966 | | Total Comprehensive Income for the Period | 431,078 | 411,214 | 830,704 | 776,915 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 435,439 | 407,153 | 831,443 | 771,798 | Interim Condensed Consolidated Statement of Financial Position This statement of financial position presents the company's assets, liabilities, and equity as of June 30, 2024, and December 31, 2023, reflecting changes in asset structure and liability levels Key Items from Condensed Consolidated Statement of Financial Position as of June 30, 2024, and December 31, 2023 | Indicator | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 34,638,271 | 31,716,609 | | Non-current Assets | 17,650,218 | 16,816,963 | | Current Assets | 16,988,053 | 14,899,646 | | Total Equity | 19,547,247 | 18,546,289 | | Total Liabilities | 15,091,024 | 13,170,320 | | Non-current Liabilities | 2,185,590 | 1,283,226 | | Current Liabilities | 12,905,434 | 11,887,094 | Interim Condensed Consolidated Cash Flow Statement This cash flow statement presents the company's cash flows from operating, investing, and financing activities, as well as the net increase in cash and cash equivalents, for H1 2024 H1 2024 Condensed Consolidated Cash Flow Statement | Cash Flow Type | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 1,294,712 | 2,271,243 | | Net Cash Flows from/(used in) Investing Activities | 576,752 | (103,243) | | Net Cash Flows from/(used in) Financing Activities | 688,029 | (317,825) | | Net Increase in Cash and Cash Equivalents | 2,559,493 | 1,850,175 | | Cash and Cash Equivalents at End of Period | 7,747,983 | 5,404,726 | Notes This section provides general information, segment reporting, expense breakdown, other net losses, income tax, earnings per share, dividends, investments, receivables, payables, and derivative financial instruments General Information This section introduces basic information about Tongcheng Travel Holdings Limited, including its place of incorporation, listing status, principal business activities, and the basis of preparation and accounting policies adopted for these interim financial statements - Tongcheng Travel Holdings Limited was incorporated in the Cayman Islands, and its shares have been listed on the Main Board of the Hong Kong Stock Exchange since November 26, 2018[78][79] - The Group is primarily engaged in providing travel-related services in China, including accommodation reservation, transportation ticketing, online advertising, hotel management (Core Online Travel Platform), and offline travel agency and resort-related services[79] - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and has adopted amendments to International Accounting Standard 1, which did not result in changes to the classification of borrowings[79][80] Revenue and Segment Information Effective January 1, 2024, the company adopted a new internal reporting structure, dividing its operations into "Core Online Travel Platform" and "Resort" as two reportable segments, to more accurately assess the performance and resource allocation of each business - Effective January 1, 2024, the company established a new internal reporting structure, dividing its operations into the "Core Online Travel Platform Segment" and the "Resort Segment"[84] - The chief operating decision maker assesses the performance of operating segments based on their revenue and operating profit/loss[85] Q2 and H1 2024 Segment Revenue and Operating Profit | Segment | 2024 Q2 Revenue (RMB thousands) | 2024 Q2 Operating Profit (RMB thousands) | 2024 H1 Revenue (RMB thousands) | 2024 H1 Operating Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Core Online Travel Platform | 3,525,959 | 858,389 | 6,729,303 | 1,582,592 | | Resort | 719,398 | 673 | 1,382,332 | 44,587 | | Total | 4,245,357 | 517,025 | 8,111,635 | 972,050 | Expenses by Nature This section details the company's expenses by nature for Q2 and H1 2024, including employee benefits, advertising and promotion, and travel product costs Q2 and H1 2024 Expenses by Nature | Expense Item | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Employee Benefit Expenses | 1,002,817 | 747,303 | 1,955,878 | 1,437,020 | | Advertising and Promotion Expenses | 971,271 | 709,308 | 1,871,552 | 1,324,486 | | Cost of Purchased Travel-related Products | 712,662 | 58,484 | 1,270,586 | 105,554 | | Order Processing Costs | 336,624 | 325,788 | 705,212 | 641,193 | | Depreciation and Amortization Expenses | 254,907 | 221,748 | 513,076 | 441,240 | | Commission Expenses | 143,920 | 157,537 | 252,867 | 282,635 | | Procurement Costs | 142,462 | 90,262 | 269,951 | 169,570 | | Total | 3,769,206 | 2,446,611 | 7,240,971 | 4,661,535 | Other Net Losses This section analyzes the company's other net losses for Q2 and H1 2024, primarily influenced by net exchange losses, investment income, and gains from derivative financial instruments Q2 and H1 2024 Other Net Losses | Item | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Exchange Losses | (29,259) | (131,023) | (46,932) | (98,914) | | Investment Income from Investments Measured at Amortized Cost | 12,498 | 23,271 | 32,526 | 48,291 | | Net Gains from Derivative Financial Instruments | 106 | 28,510 | 1,980 | 34,254 | | Total Other Net Losses | (14,569) | (80,147) | (14,006) | (17,430) | Income Tax Expense This section explains the composition of the company's income tax expense for Q2 and H1 2024, including current and deferred income tax, and clarifies the applicable corporate income tax rates in China and tax incentives for high-tech enterprises Q2 and H1 2024 Income Tax Expense | Item | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Current Income Tax | 93,592 | 70,037 | 184,359 | 125,326 | | Deferred Income Tax | 16,206 | (3,465) | (22,487) | 6,375 | | Total Income Tax Expense | 109,798 | 66,572 | 161,872 | 131,701 | - Three directly held subsidiaries incorporated in China are recognized as high-tech enterprises, enjoying a preferential corporate income tax rate of 15%[93] - Other Chinese subsidiaries are subject to the general corporate income tax rate of 25% in China[93] - As of June 30, 2024, no provision for deferred tax liabilities on withholding tax has been made, as the company has no plans to distribute retained earnings from its Chinese subsidiaries[93] Earnings Per Share This section provides the company's basic and diluted earnings per share data for Q2 and H1 2024, explaining the calculation methods and potential dilutive factors Q2 and H1 2024 Earnings Per Share | Indicator | 2024 Q2 (RMB) | 2023 Q2 (RMB) | 2024 H1 (RMB) | 2023 H1 (RMB) | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 0.19 | 0.16 | 0.37 | 0.33 | | Diluted Earnings Per Share | 0.19 | 0.16 | 0.36 | 0.32 | - Basic earnings per share are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares outstanding[94] - Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding, assuming the conversion of all potential dilutive ordinary shares, such as share options and restricted share units[96] Dividends This section outlines the company's dividend distribution for H1 2024, including final dividends declared and paid - On March 19, 2024, the company declared a final dividend of HK$0.15 per share for the year ended December 31, 2023, which was paid on July 19, 2024[98] - For the six months ended June 30, 2024, the company did not pay or declare any dividends[98] Investments This section details the composition and accounting treatment of the company's short-term and long-term investments, including types measured at amortized cost and at fair value through profit or loss Composition of Investments as of June 30, 2024 | Investment Type | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Assets: Total Short-term Investments | 2,074,577 | 3,948,468 | | - Measured at Amortized Cost | 236,901 | 2,316,753 | | - Measured at Fair Value Through Profit or Loss | 1,837,676 | 1,631,715 | | Non-current Assets: Total Long-term Investments | 2,139,558 | 1,723,173 | | - Measured at Amortized Cost | 1,209,082 | 683,879 | | - Measured at Fair Value Through Profit or Loss | 930,476 | 1,039,294 | - Short-term investments measured at amortized cost are time deposits within one year, bearing fixed interest rates[99] - Short-term investments measured at fair value through profit or loss are wealth management products with expected returns ranging from 1.90% to 4.58%[100] - Long-term investments measured at amortized cost are time deposits with maturities of 2 to 3 years, bearing fixed annual interest rates ranging from 2.70% to 3.56%[101] - Long-term investments measured at fair value through profit or loss include equity interests in private and listed companies and wealth management products with maturities over one year, with expected returns ranging from 3.43% to 8.00%[102] Prepayments and Other Receivables This section presents the detailed composition of the company's non-current and current prepayments and other receivables as of June 30, 2024, and December 31, 2023 Prepayments and Other Receivables as of June 30, 2024 | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Non-current, Total | 322,633 | 792,970 | | Current, Total | 5,300,889 | 4,369,903 | | - Designated Deposits with Restricted Use | 2,684,051 | 2,007,597 | | - Amounts Due from Related Parties | 561,552 | 428,738 | | - Prepayments to Ticketing Suppliers | 982,377 | 779,802 | Trade Receivables This section provides an aging analysis of the company's trade receivables, showing the amounts within different aging brackets Aging Analysis of Trade Receivables as of June 30, 2024 | Aging | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Up to Six Months | 1,501,791 | 1,209,113 | | Over Six Months | 300,089 | 132,606 | | Total (net of impairment allowance) | 1,691,953 | 1,218,288 | Derivative Financial Instruments This section describes the company's derivative financial instruments, primarily capped foreign exchange forward contracts, and presents their fair value and net gains recognized in profit or loss - The company holds capped foreign exchange forward contracts as derivative financial instruments, with a fair value of RMB 18.19 million as of June 30, 2024[106] Q2 and H1 2024 Net Gains from Derivative Financial Instruments | Item | 2024 Q2 (RMB thousands) | 2023 Q2 (RMB thousands) | 2024 H1 (RMB thousands) | 2023 H1 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Realized Net Gains from Foreign Exchange Forward Contracts Recognized in Other Net Losses | – | 2,167 | 8,624 | 2,167 | | Unrealized Gains/(Losses) from Foreign Exchange Forward Contracts Recognized in Other Net Losses | 106 | 26,343 | (6,644) | 32,087 | | Total | 106 | 28,510 | 1,980 | 34,254 | Borrowings This section details the composition of the company's non-current and current borrowings as of June 30, 2024, and December 31, 2023, including unsecured and secured bank borrowings Composition of Borrowings as of June 30, 2024 | Borrowing Type | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Liabilities | 760,784 | 10,942 | | - Unsecured Long-term Bank Borrowings | 406,063 | 1,442 | | - Secured Long-term Bank Borrowings | 354,721 | 9,500 | | Total Current Liabilities | 2,357,718 | 2,540,095 | | - Unsecured Short-term Bank Borrowings | 2,217,405 | 634,136 | | - Current Portion of Unsecured Long-term Bank Borrowings | 45,533 | 1,814,969 | | Total Borrowings | 3,118,502 | 2,551,037 | - The company entered into a loan agreement on March 20, 2024, borrowing RMB 500 million for acquisition refinancing, which is an unsecured loan[109] - The company entered into a loan agreement on January 9, 2024, borrowing RMB 410 million for acquisition refinancing, secured by 100% equity interest in a subsidiary[109] Trade Payables This section provides an aging analysis of the company's trade payables, showing the amounts within different aging brackets Aging Analysis of Trade Payables as of June 30, 2024 | Aging | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Up to Six Months | 4,832,766 | 3,916,065 | | Over Six Months | 278,657 | 214,917 | | Total | 5,111,423 | 4,130,982 | Corporate Governance and Other Information This section covers interim dividends, securities transactions, compliance with governance codes, audit committee review, post-reporting events, and report publication details Interim Dividend The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024 - The Board of Directors does not recommend the payment of a dividend for the six months ended June 30, 2024[110] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2024, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2024, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[111] Standard Code for Securities Transactions and Corporate Governance Code The company has adopted and complied with the Standard Code for Securities Transactions and the Corporate Governance Code as set out in the Listing Rules, ensuring directors and employees with inside information adhere to relevant regulations - The company has adopted and complied with the Standard Code for Securities Transactions as set out in Appendix C3 to the Listing Rules, and directors have confirmed compliance[113] - The company has adopted and applied the principles and code provisions set out in the Corporate Governance Code and has complied with them for the six months ended June 30, 2024[114] Audit Committee The Audit Committee has reviewed the Group's accounting principles, internal controls, and financial reporting matters, deeming the financial results for the six months ended June 30, 2024, to be in compliance with relevant standards and appropriately disclosed - The Audit Committee comprises three members, including two independent non-executive directors and one non-executive director, in compliance with the Listing Rules' terms of reference[115] - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2024, and considers them to be in compliance with relevant accounting standards, rules, and regulations[115] Events After the Six Months Ended June 30, 2024 This section discloses significant events that occurred after the reporting period, including the termination of a letter of intent and the refund of earnest money - On August 5, 2024, the investor and the seller entered into an agreement to terminate the letter of intent, and the earnest money of RMB 100 million was refunded to the investor on August 7, 2024[116] Publication of Results Announcement and Interim Report This announcement has been published on the HKEX website and the company's website, and the interim report will be dispatched or made available electronically to shareholders in due course - This announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.tongchengir.com)[117](index=117&type=chunk) - The interim report, including all information required by Appendix D2 of the Listing Rules, will be dispatched or made available electronically to shareholders in due course[117] Definitions This section provides definitions for key terms and terminology used in the announcement to ensure readers' understanding of the report content - This section provides definitions for key terms and terminology used in the announcement, such as "Cumulative Serviced Passenger Trips," "Annual Paying Users," and "Corporate Governance Code"[118][119][121] Acknowledgements and Board of Directors The Board of Directors expresses gratitude for the support and contributions of shareholders, management team, employees, business partners, and customers, and lists the members of the Board as of the announcement date - The Board of Directors extends its sincere gratitude for the support and contributions made by the company's shareholders, management team, employees, business partners, and customers[120] - The Board of Directors includes Executive Directors Wu Zhixiang (Co-Chairman) and Ma Heping (CEO), Non-executive Directors James Jianzhang Liang (Co-Chairman), Jiang Hao, Xie Qinghua, and Brent Richard Irvin, and Independent Non-executive Directors Yang Jiahong, Dai Xiaojing, and Han Yuling[120][121]