TRAVELSKY TECH(TSYHY) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In the first half of 2023, the company achieved total operating income of RMB3.3 billion, representing a 45% increase year-on-year [14] - Basic and diluted earnings per share increased by 173% to 0.41 RMB [14] - Profits attributable to shareholders reached RMB1.2 billion [14] Business Line Data and Key Metrics Changes - Revenue from Aviation Information Technology Services reached RMB1.89 billion, a significant increase from RMB802 million year-on-year [15] - Revenue from online payment transactions increased to RMB710 million due to the recovery of passenger volume [16] - Revenue from technical services amounted to RMB312 million, reflecting a 40% increase year-on-year [31] Market Data and Key Metrics Changes - The company processed approximately 283.9 million passengers, a 143% increase compared to the previous period, recovering to 84.2% of the same period in 2019 [3] - Domestic airlines' processing volume reached 99.19% of 2019 levels, while international flights showed recovery rates of 29.60% and 39.45% for foreign and regional airlines respectively [39][40] Company Strategy and Development Direction - The company is focusing on high-quality development of core businesses and expanding market presence in aviation information technology services [2] - It aims to provide higher quality and more convenient services to customers while creating stable returns for shareholders [12] - The company is actively promoting carbon neutrality and technological innovation [10][11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a complicated global economic landscape but emphasized that the long-term growth characteristics of China's economy remain unchanged [12] - The company expects to see stable momentum in revenue growth driven by the recovery in civil aviation transport [31] Other Important Information - The company has been recognized as the first national enterprise technology center in the civil aviation industry, obtaining 48 patents [8] - It has implemented a three-tiered ESG governance structure to oversee and improve its ESG initiatives [33][34] Q&A Session Summary Question: About the per passenger transaction fee - The company noted that the per passenger fee decreased due to a substantial increase in traveler numbers, but this would not significantly affect overall revenue [21] Question: Regarding technical services costs and NDC applications - The company acknowledged that COVID-19 impacted revenue and expects more project completions in the second half of the year [23] - It is actively supporting domestic airlines in establishing NDC platforms [24][26] Question: About equity-based incentive programs - The company is pushing forward with its equity-based incentive plan, which requires regulatory compliance and board approval [27][28] Question: On other revenues and sustainability - The impressive revenue performance in payment and technical services is attributed to the recovery in civil aviation transport, and the company expects stable growth momentum [30][31] Question: About ESG governance and carbon neutrality - The company has established a comprehensive ESG governance system and is implementing measures to achieve carbon peak and neutrality by 2030 [33][35][36] Question: Forecast on customer structure and travel seasons - The company observed a rapid recovery in passenger numbers and expects domestic flights to meet recovery forecasts while international flights will follow a gradual recovery [39][40] Question: System integration revenue confirmation - The company anticipates stabilization in system integration revenue for the second half of the year, close to 2022 levels [42] Question: Increase in other payments - The increase in payments is driven by a dramatic rise in passenger volume and partnerships with third-party payment companies [43] Question: Plans for Umetrip listing - The company is currently assessing Umetrip's capital and business development for future public listing considerations [44]