Group Reports Net Revenue of 5.9 Billion Yuan in Q2, an 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 firm reported net revenues of 5.9 billion yuan ($912 million), representing an 86% increase from the same period in 2020, primarily due to the strong recovery of China’s domestic market. Group said that the company’s overall results for the second quarter of 2021 were negatively impacted by the COVID-19 pandemic, as well as subsequent outbreaks driven by new variants of the virus. However, benefiting from the general containment of the pandemic in China, the company’s domestic business has continued to show a strong recovery, which has contributed to a substantial proportion of its total revenue.

Thanks to the steady recovery of the domestic tourism market, Group’s four main businesses performed brilliantly. In the second quarter of 2021, the income from accommodation reservation, transportation ticketing, packaged tours and business travel was 2.5 billion yuan, 2.1 billion yuan, 367 million yuan and 390 million yuan, respectively. Net loss attributable to its shareholders for the second quarter of 2021 was 647 million yuan, an increase of 36% from the same period last year.

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

“Overall, the Chinese domestic travel market has been encouraging, and we see great potential in international markets,” said James Liang, Executive Chairman of the firm. “Going forward, we will continue to be adaptive and responsive to the changing market conditions and the evolving demands of post-pandemic travelers.”

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Recently, Group released a report containing tourism data on the country’s recent Mid-Autumn Festival holiday. As of 9:00 on September 21, about 56% of its users had booked travel plans within their own province – a higher rate than that in 2019. Regarding Mid-Autumn Festival peripheral tour orders,  hotel bookings increased by more than 20% compared with 2019, while ticket reservations increased by nearly 30% and car rental orders increased by 77%.