After withdrawing from the property sector and entering the winter sports market, China Travel HK (HK: 00308), a core member of the China Travel Service group, successfully returned to profitability in its latest interim report. On August 31st, the company announced that for the first half of 2026, revenue from continuing operations reached HK$2.056 billion, a 13% increase year-on-year. Gross profit stood at HK$588 million, up 3.06%, while operating profit surged by 60.15% to HK$142 million. Net profit attributable to shareholders was HK$112 million, a sharp turnaround from a loss of HK$87 million in the same period last year. Basic earnings per share were 2.02 HK cents, and the board declared an interim dividend of 1 HK cent per share, representing a payout ratio of approximately 49%.

During the results briefing held on the afternoon of September 1st, Chief Financial Officer Xie Dong explained that one key reason for the swing to profitability was the company's decision to spin off its loss-making tourism property business at the end of 2025 through a distribution in specie. According to earlier reports, China Travel HK had previously adopted a model integrating scenic spots with property development. However, as the real estate industry entered a period of deep adjustment, this segment gradually shifted from being a performance driver to a financial burden. At the annual results briefing in April, the management had indicated that the company's 15th Five-Year Plan no longer included any tourism property projects.

Xie Dong further noted that China Travel HK completed the acquisition of Jilin Songhua Lake International Resort Development Co., Ltd. and China Travel (Beijing) Winter Sports Development Co., Ltd. in October 2025, marking its formal entry into the ski and ice-sports sector. These two companies have created a new revenue stream for the group, collectively contributing HK$208 million in income during the first half of the year. However, the winter sports business is characterised by a distinct seasonal cycle, with operating performance heavily concentrated in the winter snow season. Addressing how to mitigate this operational challenge at the meeting, General Manager Feng Gang explained that the company has introduced educational study tours, sporting events such as mountain marathons, and bundled packages featuring sunrise and sunset viewing to smooth out the off-season shortfall. As a result, even during the traditional off-season months of July and August, Jilin Songhua Lake International Resort Development Co., Ltd. still achieved year-on-year revenue growth.

Looking at the business structure for the first half of 2026, the tourism scenic spots and related services segment was the standout performer, posting total revenue of HK$989 million, a 37% increase year-on-year. Within this segment, natural and cultural scenic spots, along with leisure and resort destinations — including the aforementioned two winter sports companies — grew rapidly, with the new Qinghai Heidushan project, launched in March, already turning profitable. In contrast, the theme park business faced pressure, with revenue down 7% year-on-year. Specifically, Window of the World saw a 3% decline in revenue, while Splendid China experienced a 15% drop. Feng Gang attributed the theme park decline to intensifying market competition, aging products, and adverse weather conditions. He noted that the company is actively pursuing the introduction of both international and domestic intellectual property (IP) to rejuvenate its parks, and a new version of the "Journey to the West" animation IP has been licensed by China Central Television (CCTV) for implementation within its scenic areas.

The market's most anticipated development — the separate listing of China Travel Hong Kong Macau Cultural Tourism Holdings Limited (hereafter "China Travel HK Macau") — is progressing steadily. On May 20th, the subsidiary submitted its listing application to the Hong Kong Stock Exchange, planning to list independently on the Main Board via introduction. According to its prospectus, Kenneth Fok Kai-kong serves as one of its independent non-executive directors. At the results briefing, Chairman Wu Qiang stated that upon completion of the spin-off, China Travel HK will focus on three core tracks: natural and cultural scenic spots, leisure and resort destinations, and theme parks. The spun-off entity will handle cross-border transport, hotel accommodation, travel document and related services, and property investment. Wu Qiang commented that this move will enable the company to "fully transition away from its conglomerate operating model, transforming into a pure-play mainland cultural tourism operator platform, thereby enhancing overall profitability and asset turnover efficiency."