Comprehensive Overview
Group is a well-known travel service provider located in Ningbo City, Zhejiang Province, China. According to Frost & Sullivan, in terms of revenue in 2017, the group ranked fifth among all travel agencies in Zhejiang Province, with a market share of 0.9%. The Group is mainly engaged in (i) designing, developing and selling tours (including traditional and group tours and customized tours); (ii) selling freelance products (mainly including the provision of air tickets and/or hotel accommodations); and (iii) providing customers with supporting products and travel services, including visa application processing, tourist attraction tickets and travel insurance agency. For the year ending 2017 and the end of 2018, the Group's tour group sales accounted for approximately 87.6% and 85.3% of the Group's total revenue, respectively. The Group's sales channels include tourist malls, retail branches, sales offices, websites and mobile applications.
According to Frost & Sullivan, the compound annual growth rate of China's total tourism consumption reached 14.9% from 2013 to 2017 due to the continuous increase in income levels and travel consumption expenditure, and the government introduced more favorable policies related to the tourism industry. It is expected that the compound annual growth rate from 2018 to 2022 will be 9.8%.
Risk Factors
Group revenue comes from Chinese customers. A decline in the Chinese economy may adversely affect the Group's business and operating performance. In addition, disruptions in the supply of flights, hotel accommodations, local airline services, or other travel elements or related services, or price increases for travel elements may adversely affect the Group's operations and profitability.