Zhejiang New Century Hotel Management (New Century Hotel), a Chinese hotel group listed on Hong Kong Exchange, announced its 2019 interim results on August 21.
Highlights of H1
* Revenue increased 8.3% to RMB 905.2 million.
* EBITDA rose 136.9% to RMB 319.3 million.
* Gross profit grew 28.5% to RMB 243.6 million.
* Gross profit margin was 26.9%.
* Net profit increased 1.4% to RMB 80.9 million.
During the reporting period, the company had 68 newly contracted hotels in total (January to June in 2018: 34). The gradual increase in the number of hotels in the pipeline reflected the growing influence of New Century brand nationwide.
As at June 30, 2019, the company’s hotel portfolio consisted of 178 hotels in operation (as at 31 December 2018: 150), with 40,383 rooms (as at 31 December 2018: 34,286) in China, representing an increase of 18.7% and 17.8% as compared to December 31, 2018.
Among the 178 hotels in operation, 126 were under full-service management agreements, 15 were under franchise agreements, two were owned hotels, and 35 were under lease agreements. As at June 30, 2019, the company had 203 hotels in the pipeline with 39,863 rooms, representing an increase of 20.1% and 9.6% respectively as compared to December 31, 2018.
Operating data
Revenue breakdown
As at June 30, the company’s total balance of cash and cash equivalents amounted to RMB 253.2 million (as at 31 December 2018: RMB 367.7 million), and term deposit of RMB 930.0 million (as at 31 December 2018: RMB 68.0 million).
