Tourists stroll along the Southern Song Imperial Street in Hangzhou, east China's Zhejiang Province, June 10, 2023. (Xinhua/Jiang Han)
BEIJING, Sept. 6 (Xinhua) -- A bevy of China's listed firms in catering, retail, entertainment and other sectors have reported earnings and profit growth during the second quarter or the first half of this year, reflecting increasing demand and stronger recovery in consumer spending.
Net profits of companies in hospitality, catering, tourism and motion picture industries have all reversed their losses and made profits on par with those of H1 2019 as offline activities recovered across China, said the Shanghai Stock Exchange, citing analysis of financial reports of all of its listed firms.
Tourism-related companies received a shot in the arm as Chinese people flocked to lively urban streets and picturesque rural areas on weekends and holidays.
Online travel agency Trip.com Group said its net operating revenue in Q2 surged 180 percent year on year with record-breaking overall hotel and plane ticket bookings. Industry data showed that over 2 billion tourist trips were made in H1, up 63.9 percent over last year.
Spring Airlines said it returned to profit in H1 buoyed by the increase in international flights and resumed group tours in over 100 countries and regions. The trend is likely to continue in the second half with heftier bookings for the National Day holiday in October, said company spokesperson Zhang Wu'an.
Official data showed that the number of passenger trips operated by China's railways soared 124.9 percent year on year during the first half of this year, while daily flights in China rebounded to 89 percent of 2019 level in the first half.
The catering sector has also been recovering as pro-consumption policies have paid off. China has adopted several measures to unleash the consumption potential in the sector, such as launching gourmet festivals, developing special food streets and promoting the establishment of semi-finished cuisine hubs.
Guangzhou Restaurant, a time-honored Cantonese cuisine brand, opened a new eatery -- its first in Shanghai -- in May. "Business has been brisk, which has enabled more ventures," said its company secretary Chen Yang.
The firm said its H1 revenue and net profit climbed 22.57 percent and 39.86 percent, respectively, joining the ranks of other time-honored brands with double-digit or triple-digit profit hikes, such as Tongqinglou and Quanjude.
Younger companies didn't fall behind. Hotpot chain Haidilao saw profit soar from 73 million yuan (about 10 million U.S. dollars) in H1 2022 to around 2.2 billion yuan, while Luckin Coffee overtook Starbucks in Q2 with a quarterly revenue of 6.2 billion yuan.
Consumer shopping both online and offline continued to expand in the first six months. Shanghai-listed offline supermarket and department store operators saw a 46-percent net profit hike, said the stock exchange.
Profit increases are especially evident in companies in the automobile and home appliance sectors with the help of robust exports, while emerging consumption hot spots like novelty home appliances, cosmetics and designer toys saw a faster-than-average sales uptick, said Li Qiusuo, an analyst with the research department at China International Capital Corporation Limited.
Analysts and market watchers are upbeat about current consumption trends continuing in the months to come, citing record theater attendance and highest-in-five-years domestic tourist trips during the June-August period.
New government policies are expected to play supportive roles. Group tours to dozens of more overseas destinations are resumed from Aug. 10, including Japan, Britain, the United States and Australia. Authorities also announced last week that China aims to bring this year's annual auto sales to about 27 million vehicles, an increase of 3 percent from the 2022 level.
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