Shanghai-traded China Tourism Group Duty Free will now seek a Hong Kong listing after posting solid earnings for 2020.
The tourism firm and parent to China Duty Free Group said in a statement late Wednesday that its Board has green-lighted a proposal to work preliminary on a secondary listing in Hong Kong.
According to the company, which also operates duty free stores, the share sale in the city would help it boost capital and competitiveness.
But China Tourism warned that the share sale is still subject to review.
“Relevant work is being discussed, and the specific details of this issuance and listing have not yet been determined,” it said.
It did, however, reveal that its profit for 2020 jumped by 33% from a year earlier 6.1 billion yuan ($940.7 million). The bottom line was boosted thanks to China Tourism’s online expansion and the tax-free policy in the southern Hainan province. Revenues in the year reached 52.6 billion yuan ($8.1 billion), representing 8% growth from 2019.
According to preliminary results posted by the company, it expects a net profit of 2.85 billion yuan ($435.8 million) for the first quarter. In the same period last year, marking the onset of the coronavirus pandemic, China Tourism incurred a loss of 120 million yuan ($18.3 million). Revenues in the period are expected to more than double to 18.1 billion yuan.
Earlier this week, China’s top travel booking platform Trip.com Group (Nasdaq: TCOM; HKEX: 09961) completed its secondary Hong listing, raising $1.1 billion. So far the stock has performed relatively well, up 12% from its offering price of HK$268 per share.