TravelSky Technology (696) H1 2025 earnings summary

Executive summary

• Net profit attributable to shareholders rose 5.9% year-over-year to RMB 1,447.7 million for H1 2025, despite a 3.6% decline in total revenue to RMB 3,894.5 million, mainly due to lower system integration and data network revenues.

• Operating profit reached RMB 1,690.0 million, a 4.7% increase compared to H1 2024; total profit was RMB 1,677.9 million, up 4.5%.

• Maintained strong market leadership in China's aviation IT sector, expanding digital and smart airport solutions, and advancing innovation in AI and low-altitude economy platforms.

• No interim dividend will be distributed for H1 2025; the 2024 final dividend of RMB 0.239 per share was approved.

Financial highlights

• Basic and diluted EPS for H1 2025 was RMB 0.49, up from RMB 0.47 in H1 2024.

• Operating margin improved to 43.4% from 39.9% in H1 2024.

• Total operating expenses decreased by 4.2% to RMB 2,427.9 million; labor costs rose 3.2%, and depreciation and amortization fell 17.6%.

• Credit impairment losses improved, with a reversal of RMB 176.5 million due to better receivables collection.

Outlook and guidance

• Expects continued complexity and uncertainty in the global economy, but anticipates stable growth in China's aviation sector.

• Strategic focus areas include enhancing aviation safety, accelerating innovation, expanding core business, and deepening reforms under the "15th Five-Year Plan."