Chinese listed company Jinling Hotel Co., Ltd. (Jinling Hotel) saw a 45.77% year-on-year decrease in its net profit attributable to shareholders of the listed company in 2024, with a reduction of 31 chain hotels under its management. In the first quarter of this year, the hotel’s operating revenue and net profit continued on a downward trend.
On the morning of June 6, Jinling Hotel held an online performance briefing for the year 2024 and the first quarter of 2025.
According to the company’s recently released “2024 Annual Report,” the revenue and gross profit margin of its core hotel service business both declined year-on-year, leading to a decrease in their contribution to the company’s overall revenue share.
In 2024, Jinling Hotel achieved operating revenue of 1.87 billion yuan (RMB), a 1.95% year-on-year increase; meanwhile, its net profit attributable to the parent company was 33 million yuan, down by 45.77% year-on-year. Looking at the different sectors, the revenue from its hotel services, property leasing, and property management businesses all experienced declines. Specifically, the core hotel service business of Jinling Hotel generated operating revenue of 535 million yuan, a decrease of 8.92% year-on-year, with a gross profit margin of 40.92%, down by 1.82 percentage points.
An article by “Huaxia Times” on June 6 reported that in recent years, the proportion of revenue from hotel services in Jinling Hotel has been declining. From 2020 to 2023, the share of hotel service revenue in its total revenue was 30.39%, 29.48%, 28.26%, and 31.19% respectively. Despite a slight increase in 2023, in 2024, the contribution of hotel business revenue to Jinling Hotel’s total revenue dropped to 28.58%.
Meanwhile, the net cash flow generated from operating activities for 2024 was 123 million yuan, marking a 58.52% decrease year-on-year.
The annual report also revealed that by the end of 2024, Jinling Hotel’s chain hotels had signed contracts with a total of 215 establishments, showing a decrease of 31 hotels compared to the end of 2023, which is far from the company’s strategic goal of achieving 500 hotels by 2025 as set forth in its 2020 plan.
As per the company’s “First Quarter 2025 Report,” from January to March, the company recorded operating revenue of 446 million yuan, a 20.48% decrease year-on-year, and a net profit attributable to the parent company’s owners of 6.4459 million yuan, down by 18.26% year-on-year.
During the performance briefing on the morning of June 6 for the Jinling Hotel’s performances of 2024 and the first quarter of 2025, Zhang Shengxin, Director and General Manager of Jinling Hotel Co., Ltd., mentioned that in 2024, due to strategic adjustments by its partners, the business operations of Guizhou Guiningda Hotel Management Co., Ltd., in which the company had invested, were gradually terminated, leading to a decrease in the total number of signed contracts for Jinling chain hotels.
Regarding the primary reasons for the decrease in the company’s net profit, Zhang Shengxin attributed it to the impact of the cancellation of real estate tax and land use tax exemptions on Nanjing Jinling Hotel and XJinling Corporation, as well as the influence of weak growth in alcohol consumption and increased production prices of famous wines on SuTang Company, along with the effects of the early termination of operations for the Beijing Jinling Hotel project.