Net revenue Group Reports Second Quarter Net Revenue of 5.9 Billion Yuan, 86% YoY Increase

On Friday, one-stop travel service provider Group announced its unaudited financial results for the second quarter of 2021. During the period, the company reported net sales of $ 5.9 billion. yuan ($ 912 million), an increase of 86% compared to the same period in 2020, mainly due to the strong recovery of the Chinese domestic market. Group said the company’s overall results for the second quarter of 2021 were negatively affected by the COVID-19 pandemic, as well as subsequent outbreaks caused by new variants of the virus. However, taking advantage of the general containment of the pandemic in China, the company’s domestic activities continued to post a strong recovery, which contributed to a substantial part of its total revenue.

Thanks to the steady recovery of the domestic tourism market, the four main activities of Group performed well. In the second quarter of 2021, revenue from accommodation reservation, transportation ticketing, tour packages and business travel were respectively 2.5 billion yuan, 2.1 billion yuan, 367 million yuan and 390 million yuan. The net loss attributable to its shareholders for the second quarter of 2021 was 647 million yuan, an increase of 36% compared to the same period last year.

While the company’s core business has steadily recovered, Group’s sales and marketing expenses have also increased. In the second quarter, selling and marketing expenses, general and administrative expenses and product development expenses increased by 112%, 39% and 24% respectively compared to the same period in 2020.

“Overall, the Chinese domestic travel market has been encouraging and we see great potential in international markets,” said James Liang, executive chairman of the company. “Going forward, we will continue to adapt and respond to changing market conditions and the changing demands of post-pandemic travelers.”

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Recently, Group released a report with tourist data on the country’s recent mid-autumn vacation. As of 9:00 am on September 21, around 56% of its users had booked travel plans within their own province – a higher rate than in 2019. When it comes to Mid-Autumn Festival peripheral tour orders, Hotel bookings increased by over 20% compared to 2019, while ticket bookings increased by almost 30% and rental car orders increased by 77%.