Tencent-backed Tuhu Car expects 2023 profit turnaround as post-pandemic travel surge boosted demand for vehicle repairs
- The Chinese car maintenance company listed in Hong Kong, said it expects its financial results for 2023 to reflect a turnaround in business
- Last year, more Chinese tourists opted for short-distance trips by car, according to the China Tourism Academy
The Shanghai-based company expects to record a net profit of “no less than 450 million yuan (US$62.53 million)” for last year, it said in a filing to the Hong Kong Stock Exchange (HKEX) on Friday. That would represent a turnaround from a loss of 551.9 million yuan in 2022.
When extraordinary gains are taken into account, including the premium arising from the forced conversion of convertible preferred notes in its IPO last year, Tuhu expects earnings to have surged to at least 6.6 billion yuan (US$917.8 million), versus a 2.1 billion yuan loss in 2022.
“All our convertible redeemable preferred shares were converted to class A ordinary shares upon completion of our initial public offering and therefore we will not incur fair value changes of convertible redeemable preferred shares thereafter,” it said in the filing.
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Millions flock to China's main tourist attractions to celebrate National Day
Tourism in China has been recovering since December 2022, when the country’s zero-Covid policy was dropped, with the number of domestic trips last year returning to about 80 per cent of pre-pandemic levels.
