Recent financial reports released by Xi’an Tourism Co., Ltd. (referred to as “Xi’an Tourism”) have revealed significant losses for the company last year, with a net loss of 154 million yuan. In the first quarter of this year, Xi’an Tourism continues to operate at a loss. As a state-owned tourism company listed on the stock exchange, Xi’an Tourism has been facing losses for the past 10 consecutive years.
On the evening of April 22nd, Xi’an Tourism issued its annual report for 2023. The report indicated that the company achieved a revenue of 550 million yuan last year, representing a 38.85% increase compared to the previous year. The net loss for the year was 154 million yuan, a slight improvement from the loss of 167 million yuan in the same period the year before.
Throughout 2023, Xi’an Tourism suffered quarterly losses. The company reported losses of 29 million yuan, 21 million yuan, 14 million yuan, and 89 million yuan in the four quarters of 2023, respectively.
Regarding dividends, Xi’an Tourism stated that due to the mother company’s net loss of 190 million yuan in 2023, no cash dividend conditions were met that year.
The first-quarter report for 2024, released on the same day, revealed that the company generated a revenue of 131 million yuan, a 6.10% decrease compared to the same period last year. The net loss for the quarter was 30.11 million yuan, higher than the 29.41 million yuan loss in the previous year.
According to reports by Jiemian News, Xi’an Tourism is the first listed tourism company in the northwest region, with its main businesses including travel agencies, hotels, and trade.
In 2023, Xi’an authorities declared that the total tourism revenue in the city reached 335 billion yuan, setting a new historical record.
However, data from Wind showed that the gross profit margin of the company’s tourism service industry from 2019 to 2023 fluctuated between 5.46% and -32.06%, while the trade industry’s gross profit margin ranged from 2.65% to 0.21% during the same period.
In reality, Xi’an Tourism has had a challenging journey to turn its losses around. From 2021 to 2023, the company remained in a loss-making state. From 2013 to the end of 2023, the company had a total non-GAAP net loss of 780 million yuan over an 11-year period.
The debt repayment pressure on Xi’an Tourism is also increasing. By the end of 2020, the company had a monetary fund balance of 314 million yuan on its books, with a current liability balance of 423 million yuan. However, by the end of 2023, the monetary fund balance had decreased to 179 million yuan, while the current liability balance had risen to 996 million yuan.
An article by The Beijing News reported that as of the close on April 23rd, Xi’an Tourism’s stock price was at 13.07 yuan per share, representing a 3.11% decline and giving the company a market value of approximately 31 billion yuan.