Straco Corporation has reported earnings of $6.38 million for the 1HFY2023 ended June 30, net of an exchange loss of $1.49 million recorded as RMB weakened against SGD in the current period.
In comparison, the group reported a net loss of $8.46 million for 1HFY2022, as all the attractions reported losses.
This brings its earnings per share to 0.75 cents.
The company recorded a significant increase in revenue to $32.08 million, a 264% increase y-o-y.
This is due to all of its three China attractions reporting substantial increases in revenues against the corresponding period with a surge in visitor arrivals as China eased its strict Covid-19 measures since early December 2022.
For the half-year under review, the group recorded approximately 1.3 million visitors to all its attractions, higher than the 0.31 million visitors in 1HFY2022.
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Net asset value per share decreased compared to 1HFY2022, and attributable to losses incurred in the second half of FY2022 as higher translation losses were recorded due to further weakening of RMB against SGD, as well as dividend distributed out of retained profit to the shareholders in 1HFY2023.
“Domestic tourism in China has gradually recovered as visitors returned to our attractions, especially during the holiday periods; all three China attractions turned around and reported net profits for the half year period,” says Straco’s executive chairman Wu Hsioh Kwang.
The National Bureau of Statistics of China reported that China’s gross domestic product (GDP) grew 5.5% year-on-year in the first half of 2023, indicating a steady post-Covid recovery, as services and consumption saw significant recovery.
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However, 1HFY2023 data is affected by the low base effect last year, which was a period heavily impacted by Covid-19.
In the tourism sector, domestic tourism rebounded to pre-Covid-19 levels in the May Day holidays, with 274 million domestic trips made during the five-day break, 19% more than during 2019 and tourists spending hit 148 billion yuan, on par with 2019 levels. The Chinese Tourism Academy estimates about 4.55 billion domestic trips will be made this year, up 73% from 2022.
Shares in Straco closed flat at 48 cents on Aug 14.
