Actively explores new business opportunities; Total revenue increases by 8% year-on-year to $55.8 millionHONG KONG SAR - Media OutReach - 1 April 2022 - Travel business process management provider and travel products services provider Cinese International Group Holdings Limited ("Cinese International" or the "Group"; stock code: 1620) has announced its annual results for the year ended 31 December 2021.
Total revenue of the Group increased by approximately HK$4.2 million or approximately 8.1%, from approximately HK$51.6 million for the year ended 31 December 2020 to approximately HK$55.8 million for the year ended 31 December 2021, which was mainly due to revenue generated from the new other business process management segment. The gross profit was approximately HK$16.6 million; and the gross profit margin was approximately 29.7%. The Group's performance in 2021 continued to be impacted by the ongoing pandemic of the coronavirus disease ("COVID-19") in the year under review. These uncertainties negatively affected the Group's financial performance in 2021. However, increasing vaccination rates worldwide helped to spur the gradual recovery of the travel industries. Amid strong demand for anti-pandemic and medical assistance, the Group was able to leverage its knowledge and experience in the travel business process management segment to explore new business opportunities. In 2021, the Group secured a new customer, a healthcare company in Canada, and provided business process management services to support COVID-19 testing in Canadian airports. Benefiting from such new business opportunity, the Group successfully developed a new business process management segment in 2021, which contributed significantly to the Group's revenue.
Ms. Mariana Kou, Chairperson and Executive Director of Cinese International, said, "The Group's performance in 2021 continued to be impacted by the ongoing COVID-19 pandemic. However, the Group actively explored new business opportunities during the year, capitalizing on the strong demand for anti-pandemic assistance. Leveraging its knowledge and experience in the travel business process management segment, the Group successfully developed a new business process management services segment, consequently created a new revenue stream. With the relaxation of travel restrictions in various countries since the second half of 2021, the travel industries have shown signs of improvement, which also contributed to the gradual recovery of the Group's businesses in the second half of 2021. We believe that the worst has passed, and the Group will continue to actively explore potential business opportunities arising from the high demand for anti-pandemic and medical assistance, enabling the Group to continue to develop its business steadily."
Looking ahead, despite uncertainties relating to the spread and control of the COVID-19 pandemic, the gradual increase in vaccine uptake has resulted in local entry and exit policies being gradually relaxed, and this in turn is expected to lead to the resumption of tourism activities in countries around the world. In the past, the Group has adopted a series of measures to control costs. Moving forward, it will closely monitor global trends in the macroeconomy and maintain a pragmatic approach to its business.
Ms. Mariana Kou, Chairperson and Executive Director of Cinese International, continued, "We expect the volatile COVID-19 situation to continue to impact the global aviation and tourism industries. However, as vaccination rates rise, more and more countries are adopting a 'coexisting with the virus' strategy, particularly Canada and the United States, where the Company has a major business presence. According to figures from the International Air Transport Association (IATA), travel bookings have gradually returned to 2019 levels since the second half of 2021, which is believed to be beneficial to the Group's business development."
Further, the Group will continue to explore opportunities to diversify its business with its knowledge and experience so as to expand its income sources and enhance future earning capability and potential. The Group will continue to deploy business strategies with a view to sustain its travel related businesses and endeavor to explore suitable business opportunities from time to time in the travel consultancy, healthcare, hospitality and other potential service industry to create business synergy and bring value to shareholders of the Company.
About Cinese International Group Holdings Limited
Cinese International is a long-established air ticket consolidator, travel business process management provider and travel products and services provider in Canada, founded in 1976 and with more than 40 years of operating history. The principal businesses of the Group include (i) air ticket distribution in which it distributes air tickets to travel agents and travelers and issue air tickets directly on behalf of contracted airlines; (ii) travel business process management in which it provides mid-office and back-office support services to travel agents; (iii) other business process management in which it provides certain translation and agent services on behalf of a healthcare company; and (iv) travel products and services in which it designs, develops and sells package tours, as well as other travel products and services to travel agents and travelers.
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