TravelSky Technology (696) H2 2024 earnings summary

Executive summary

• Total revenues for 2024 reached RMB 8,823.0 million, up 26.3% year-over-year, driven by recovery and growth in China's civil aviation sector.

• Net profit attributable to shareholders rose 48.3% to RMB 2,074.3 million compared to 2023.

• System processed volume for 2024 increased 18.11% over 2023, with domestic commercial airlines up 12.19% and international segments rebounding 100.74% year-over-year.

• Final cash dividend proposed at RMB 0.239 per share, totaling RMB 699.4 million, with a new dividend policy raising payout ratio to 35–45% of net profit.

• Maintained industry leadership as one of the world's top 3 aviation processing systems and the largest BSP data processing center.

Financial highlights

• Operating profit for 2024 was RMB 2,402.5 million, up 49.7% year-over-year; operating margin improved to 27.2%.

• Basic and diluted EPS rose to RMB 0.71, a 47.9% increase from 2023.

• Total operating expenses increased 21.7% to RMB 6,453.5 million, mainly due to higher labor, depreciation, and integration project costs.

• Net cash inflow from operating activities was RMB 2,525.9 million; cash and cash equivalents stood at RMB 10,507.7 million at year-end.

• Gearing ratio was 22.9%, down from 23.6% in 2023.

Outlook and guidance

• Expects steady growth in China's civil aviation market and continued investment scale; international flights projected to recover to over 90% of 2019 levels in 2025.

• Focus on expanding digital intelligence businesses, enhancing information security, and accelerating technological innovation.

• Plans to implement high-standard reforms and deepen the "15th Five-Year Plan" strategic layout.

• No major financing plans; capital resources deemed sufficient for operational needs.