ETC.L Regulatory News (ETC)

9 Oct 2007 07:00

Et-china.com International Holdings09 October 2007 For Immediate Release 9 October 2007 ET-CHINA.COM INTERNATIONAL HOLDINGS LIMITED ("the Group" or "the Company") Trading Update Shows Strong Growth Et-china.com International Holdings Limited, the leading travel services groupin the fast growing region of South China, announces its first trading update*on its progress since it commenced trading on AIM on 3 August 2007. The Group delivered a strong trading performance in the three months to 30September 2007 on the back of a continued buoyant Chinese travel market with aparticularly good performance from the GZL tour operations which achievedrevenue for the three months that equalled half of its 2006 total. Overall Group gross revenue for the three months to 30 September 2007 amountedto RMB 849 million (£55.46 million**), net revenue was RMB 623 million (£40.69million) and gross profit was RMB 55.32 million (£3.61 million). While no directcomparable numbers are available for the Group, the two main operatingsubsidiaries are significantly ahead of their 2006 results as independentbusinesses. GZL, which is one of the largest travel package holiday providers in South Chinaproviding tour packages through 160 high street stores as well as a twenty fourhour call centre, achieved a total transaction value, or gross revenue, of RMB721 million (£47.09 million) for the three months to 30 September and netrevenue of RMB 603 million (£39.38 million). Gross profit was RMB 52 million forthe third quarter of the year. These represent increases of 58.54%, 55.48% and52.6% respectively over the same period of 2006. For the nine months to 30 September 2007, GZL served approximately 750,000package tour travellers generating net revenue of RMB 1,241 million (£81.06million), an increase of 41% over the corresponding 9 month period last year andexceeding the performance of GZL in the whole of 2006. Gross profit was RMB 111million for the nine months to 30 September 2007, a 45% increase of the sameperiod last year. Whilst the percentage split of travel destinations remainedbroadly similar to the prior year; being 50% outbound, 45% domestic and 5%inbound, the absolute number of inbound travellers has increased in the periodunder review, reflecting the Group's effort to increase inbound visitors,especially from Japan and Korea. In the same three month period, the Et-china Limited subsidiary ("Et-china"),which is primarily focused on the frequent independent traveller and corporateaccount markets, also achieved sound growth. Gross revenue amounted to RMB 128million (£8.37 million), net revenue was RMB 19.96 million (£1.3 million) andgross profit was RMB 3.37 million (£0.22 million) in the three months to 30September 2007 representing growth of 7%, 146% and 16% respectively over thesame period of 2006. For the nine months to 30 September 2007, Et-china achievedgross revenue of RMB 348 million (£22.70 million), net revenue of RMB 46 million(£3.03 million) and gross profit was RMB 8.84 million (£0.58 million). Thedecline in gross revenue of 8% against same period last year reflects Et-china'sstrategic decision to focus on sales through its own channels rather thanthrough sub-agents, with the corresponding positive impact on net turnover, up142% and gross profit, up 30% over the corresponding nine period last year. In July and August 2007 the e-ticketing business, a joint venture with China'slargest airline, China Southern Airlines, achieved a 43% increase in totaltransaction value and 38% increase in net revenue over the corresponding twomonth period in 2006. Total transaction value was RMB 1,981 million (£129.39million) and net revenue RMB 5.7 million (£0.37 million). Matthew Ng, President and Chief Executive Officer, commented: "We have achievedexcellent growth in the third quarter of the calendar year and with the stronggrowth of the Chinese economy we are looking forward to a strong year of tourismgrowth for 2007 and beyond." * All numbers in the trading update are unaudited. This statement follows theannouncement on 1 October 2007 of the interim results covering the period from29 May 2007 to 30 June 2007 for Et-china.com International Holdings Limitedwhich did not reflect the trading of the Company's subsidiaries, principallyEt-china Limited and GZL International Travel Service Limited, which wereacquired by the Company conditional on admission to AIM and therefore occurredpost the interim period end. ** Currency in this release is converted on the basis of GB£1 = RMB 15.3083 - Ends - Contact details for enquiries: Et-china.com International Holdings Limited 0207 067 0700Matthew Ng Seymour Pierce, Nominated Adviser and Broker 0207 107 8000Mark Percy Weber Shandwick Financial 0207 067 0700Terry GarrettStephanie BadjonatJohn Moriarty This information is provided by RNS The company news service from the London Stock Exchange