TRAVELSKY TECH(TSYHY) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue was RMB2.27 billion, down 20% year-on-year, while net profit increased to RMB460 million, up 54.6% [9] - Basic and diluted earnings per share rose to RMB0.151, up 56.7%, with profit attributable to equity holders increasing by 61% to RMB414 million [9] Business Line Data and Key Metrics Changes - The total processing volume of the electronic travel distribution system decreased by 51.4% year-on-year, totaling approximately 120 million [11] - The company has established connections with 152 foreign and regional airlines, achieving a direct sales proportion of approximately 99.9% [11] Market Data and Key Metrics Changes - The company faced unprecedented difficulties in the civil aviation transportation industry due to the COVID-19 pandemic, impacting overall market performance [8] Company Strategy and Development Direction - The company aims to focus on creating comprehensive aviation business solutions and enhancing technological innovation to promote sustainable development [10][16] - Future strategies include consolidating foundational protections, expanding emerging businesses, and improving technology and innovation capabilities [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complicated international situation and severe domestic pandemic conditions, emphasizing the need for scientific planning to safeguard production and business expansion [8][9] - The company remains confident in facing challenges and aims for stable growth while pursuing high-quality development [16] Other Important Information - The company has won seven Social Science and Technology awards and filed for 33 patents, indicating a strong focus on research and development [13] - The data center was recognized as a National Green Data Center, aligning with national strategies for carbon peaking and neutrality [15] Q&A Session Summary Question: Inquiry about revenue decline and system integration service increase - Management explained that the decline in settlement and clearing service revenue was less significant than the drop in passenger volume due to the nature of the business model [22][23] - The increase in system integration service revenue was attributed to concentrated efforts on several airports [24] Question: Future outlook on technical support services - Management indicated that technical service revenue is expected to maintain stable growth due to past investments in technology [29] Question: Business model and overseas clients - Management shared that cooperation with overseas airlines involves service-based models, including the installation of NBC services [35] Question: R&D expenditures and CapEx forecasts - R&D expenditures are expected to remain stable at around 14% of total expenses, with no significant changes anticipated in the near term [37] Question: Impact of pandemic on revenue and cost structure - Management acknowledged that the pandemic significantly impacts revenue, and they are exploring new solutions while focusing on long-term development [88][90]