Leading Chinese Ski Resort Group Reports Declining Business

2nd September 2019

Category : News

The Mountain China Resorts group which runs several of China’s leading and longest-established ski areas including Sun Mountain Yabuli Resort which in 2009 was awarded Best Resort Makeover in Asia by TIME Magazine, has posted another set of disappointing results.

For the first half of 2019, the company generated total revenue of $3.94 million (2018 – $5.51 million), which represents a decline of 29% as compared with 2018. The company’s turn over is  posted in Canadian dollars.

“Major reasons for the decrease in revenue was that since the second half of 2018, the Ski industry has been adversely affected by the overall economic downturn of China as a result of the macro environment of trade war between China and the U.S, as well as a series of economic policies adopted by Chinese government to drop leverage rate. 2018-2019 winter operations were under negative influence of those macroeconomic environment,” a statement from the group relates, concluding,

“The Company has an accumulated deficit and a working capital deficiency which cast a substantial doubt on the Company’s ability to continue as a going concern.”

The Mountain China Resorts group report it shut its resorts down through the summer to minimise losses, “due to the unsatisfactory summer operations results in 2018.”

It is unclear whether the performance of The Mountain China Resorts Group reflects a wider position in China where the ski industry has expanded at record pace over the past decade, partly with the country’s president Xi Jinping seeking to get 300,000 Chinese people to try wintersports ahead of the Beijing 2022 Winter Olympics.