On July 16th, China Youth Travel Holdings Co., Ltd. (China Youth Travel) is expected to see a 66% decrease in its net profit attributable to the parent company in the first half of this year compared to the same period last year. China Youth Travel attributes the decline in profit mainly to factors such as consumer behavior and weather conditions.
China Youth Travel released the “Performance Pre-announcement for the First Half of 2026” on the 16th. The announcement stated: “It is expected that the net profit attributable to the parent company’s owner in the first half of 2026 will be 22.5 million yuan, a decrease of about 44.353 million yuan compared to the same period last year, representing a decrease of around 66.34%. The net profit after deducting non-recurring gains and losses attributable to the parent company’s owner in the first half of 2026 is expected to be 31.4048 million yuan, a decrease of approximately 32.1778 million yuan compared to the same period last year, representing a decrease of about 50.61%.”
In explaining the reasons for the profit decline, the announcement mentioned: “External negative factors such as weather, safety, and consumer behavior continue to accumulate, intensifying competition in the cultural and tourism industry, affecting the company’s travel agencies, building leasing, hotels, and scenic areas to varying degrees. In addition, the total impact on net profit from the cleaning up of non-profit business and compensation for breach of contract is about -15.18 million yuan.”
According to an announcement issued by China Youth Travel on June 16 regarding the “Intended Public Listing of Asset Sale,” it was revealed that “The company intends to publicly list for sale 51% equity stake in the Zhongqing Travel Mountain Resort Hotel Group Co., Ltd. (hereinafter referred to as ‘Mountain Resort Hotel’) and the debt rights it holds.”
The reason for the sale was explained in the announcement as follows: “Mountain Resort Hotel has been running at a loss since 2020 and is currently insolvent.”
Regarding China Youth Travel’s net profit declining by over 60% year-on-year, some netizens expressed their views, suggesting that people now have less money for travel, leading to budget trips, and travel agencies are unable to make profits. Netizen “Proudly Fresh” commented, “A 60% year-on-year drop, the retaliatory travel money didn’t end up in our pockets.”
Public records show that China Youth Travel Holdings Co., Ltd. was established on November 26, 1997. It was founded by China Communist Youth League Central Enterprise Group and was listed on the Shanghai Stock Exchange on December 3, 1997. It is a state-owned enterprise with China Everbright Group as its controlling shareholder and the State Council of the People’s Republic of China as the actual controlling entity.