Interpreter: Gao Dongxu, senior analyst of culture and tourism industrySpread the Planet app resident experts
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2023 is the year of China's economic recovery of cultural tourism, and cultural tourism has become one of the few bright spots, benefiting from this, Ctrip's net operating income in 2023 will be 44.5 billion yuan. Among them, the operating income of accommodation reservation was 17.3 billion yuan, the operating income of transportation ticketing was 18.4 billion yuan, the operating income of tourism and vacation business was 3.1 billion yuan, and the operating income of business travel management business was 2.3 billion yuan, respectively, a year-on-year increase.
From Ctrip's data, we have more confidence and expectations for China's cultural tourism industry, especially the first-class tourism industry.
Key financial data
1.Profit Distribution Statement
Ctrip's total revenue increased slightly at the end of the reporting period, increasing by 008%。This shows that the overall business scale of Ctrip is maintaining stable growth. At the same time, the changes in net profit attributable to the parent company and net profit margin were particularly significant. During the reporting period, the net profit attributable to the parent company turned from negative to positive, reaching 140.3 billion yuan, a significant increase of 355 compared with the same period last year09%。This shows that Ctrip's profitability has improved significantly. Net profit margin showed a similar trend, at 7% at the end of the reporting period, compared to -2 in the year-ago quarter75%, an increase of 35455%。This further confirms that Ctrip's operating conditions have improved significantly. Finally out of the shadow of the three-year epidemic, the business has fully recovered.
2.Balance sheet
Ctrip's total assets and total liabilities decreased slightly at the end of the reporting period, decreasing by 009% and 328%。This could be an indication that Ctrip is adjusting its asset and liability structure to optimize its financial position. Although the debt ratio decreased slightly, it remained at 4104%, which may be related to the large amount of money that Ctrip needs to expand its business scale and improve its service quality. At the same time, it also means that the impact of the epidemic in previous years will take some time to resolve.
3.Cash flow statement
Operating cash flow is one of the most important cash flows generated by Ctrip's operating activities. At the end of the reporting period, cash flow from operations was 264.1 billion yuan, an increase of 671%。This shows that Ctrip's operating activities are relatively healthy and can provide a certain guarantee for future investment and development.
In addition, earnings per share and net assets per share increased. At the end of the reporting period, earnings per share were 214 yuan, an increase of 345 over the same period last year98%, while net assets per share were 16427 yuan, an increase of 2 over the same period last year37%。This indicates that the interests of shareholders have increased accordingly.
Gross margin remained stable at 7748%, an increase of only 057%。This may be related to Ctrip's pricing strategy and market environment in the industry competition. Despite the modest growth, Ctrip still needs to maintain the growth of its business scale while striving to improve efficiency and control costs to maintain a stable gross profit margin.
The debt ratio decreased slightly, but remained at a high level of 4104%。This may be related to the large amount of money that Ctrip needs to scale its business and improve the quality of its services. Despite its high debt ratio, Ctrip.com has achieved a significant increase in profitability through effective operational and financial management, thereby reducing financial risks.
Financial Highlights:
First of all, the rapid growth of international business, leading international layout and service capabilities, enabled Ctrip to benefit from the recovery of inbound and outbound travel earlier and achieve rapid growth of international business. In the fourth quarter, Ctrip's outbound hotel and air ticket bookings recovered to more than 80% of the same period in 2019, compared to 60% of passenger traffic in the international aviation industry. Ctrip's global OTA platform saw a year-on-year increase of more than 70% in total bookings. In addition, benefiting from the bonus of visa-free travel between China and Southeast Asian countries and related countries, it is foreseeable that the international air ticket business will grow significantly during the Spring Festival holiday in 2024.
Second, Ctrip has achieved high-quality development. In 2023, Ctrip continued to increase its technological innovation, with its annual product R&D expenses reaching RMB12.1 billion, up 45% year-on-year, accounting for about 27% of net operating revenue, providing underlying support for business innovation and continuously improving user satisfaction and service partner capabilities. At the same time, Ctrip actively takes responsibility for promoting low-carbon development of the industry, promoting employment and rural revitalization, and continues to enhance its sustainable development capabilities.
Third, B&B, as a new business format, has boosted Ctrip's revenue growth. The number of new homestay merchants in Ctrip increased by 122% year-on-year, and through professional training, traffic** and other measures, the GMV of new homestay merchants in 23 years increased by more than 3 times compared with that of new homestay merchants in 22. The number of cooperative merchants in Ctrip's travel and vacation business increased by 54% year-on-year, and the transaction value increased by more than 3 times year-on-year. Ctrip Business Travel helps corporate clients save on travel costs throughout the year35800 million yuan.
Fourth, Ctrip has achieved remarkable results in consolidating the achievements of rural poverty alleviation and rural revitalization. In 2023, Ctrip will open 8 new resort farms, bringing the total number to 28. These fake farms have driven an average of 40,000 yuan in per capita annual income of local employees, creating a total of 8Driven by the value of 600 million yuan, it indirectly brought 5The output value of related industrial chains increased by 800 million yuan, and more than 20,000 new jobs were created in related industries.
The above highlights will also become a strong support for Ctrip's performance growth in 2024.
Trends**
Based on Ctrip's financial results for the fourth quarter and full year of 2023, I personally make the following development trends for Ctrip.com in 2024
1. Ctrip's revenue will maintain stable growth in 2024
According to the financial report data, Ctrip's net operating income for the whole year of 2023 reached 44.5 billion yuan, a significant year-on-year increase. This growth trend is expected to continue in 2024, especially with the gradual recovery of the global economy and the further opening up of the outbound travel market.
Second, Ctrip's profit level is expected to increase
Ctrip's performance in 2023 is outstanding, especially in the fourth quarter, the NPS (Net Promoter Score) increased by 20% quarter-on-quarter, indicating that user satisfaction remains at a high level. This good user reputation and satisfaction is expected to translate into higher profit levels, driving Ctrip's profitability to further improve in 2024.
3. Ctrip will actively promote its business diversification and internationalization strategy
In 2023, Ctrip increased its investment in diversified businesses and international layout, such as accommodation reservations, transportation ticketing, travel and vacation, and business travel management business, all of which achieved year-on-year growth. This trend is expected to continue in 2024, helping Ctrip to occupy a stronger position in the global travel market.
Fourth, Ctrip will continue to increase investment in technology to achieve technological innovation to help development
In 2023, Ctrip will continue to increase technological innovation, and its annual product research and development expenses will reach 12.1 billion yuan, a year-on-year increase of 45%. This emphasis and investment in technological innovation is expected to help Ctrip further improve its service quality and user experience in 2024, and enhance its competitive advantage.
Fifth, sustainable tourism has become an important direction
With the increasing global focus on environmental protection and sustainable development, Ctrip is likely to pay more attention to the development of sustainable tourism in 2024, and contribute to the green development of the tourism industry by promoting eco-friendly tourism products and encouraging users to use low-carbon transportation modes.
In general, based on Ctrip's financial report data for the fourth quarter and full year of 2023, we can ** Ctrip's development trend in 2024 will be reflected in stable revenue growth, improved profit levels, business diversification and internationalization, technological innovation to help development, and sustainable tourism as an important direction.
However, these are based on current information and trends, and future developments may still be affected by a variety of factors, including the global economic situation, national political competition and international policy changes, changes in consumer demand, etc. Therefore, it is necessary to pay continuous attention to the impact of relevant factors.