Financial Performance - The company's revenue for the year ended December 31, 2023, reached approximately RMB 92.6 million, an increase of about 252% compared to RMB 26.3 million in 2022[4] - Gross profit for the same period was approximately RMB 33.6 million, also showing a growth of over 100% from RMB 7.4 million in 2022[4] - The net profit attributable to equity shareholders was approximately RMB 8.9 million, a significant turnaround from a loss of RMB 18.5 million in the previous year[4] - The group's revenue for the year ended December 31, 2023, was RMB 92.645 million, a significant increase from RMB 26.293 million in 2022, representing a growth of approximately 252%[18] - The gross profit for the same period was RMB 33.642 million, compared to RMB 7.409 million in 2022, indicating a substantial increase in profitability[18] - The net profit for the year was RMB 9.194 million, a recovery from a loss of RMB 18.508 million in 2022[20] - The group's pre-tax profit for 2023 was RMB 8,921,000, a significant improvement compared to a loss of RMB 18,462,000 in 2022[46] Revenue Breakdown - Revenue from local tours in Japan increased by approximately 9,538%, while revenue from Japanese travel packages rose by 345% compared to 2022[11] - Revenue from travel group sales and local tours surged to RMB 59,203,000 in 2023, compared to RMB 3,370,000 in 2022, marking an increase of about 1,661%[34] - Hotel business revenue increased to RMB 19,760,000 in 2023, up from RMB 6,074,000 in 2022, reflecting a growth of approximately 226%[34] - Revenue from visa application services rose to RMB 6,372,000 in 2023, compared to RMB 61,000 in 2022, indicating a growth of around 10,400%[34] - Revenue from duty-free store operations decreased to RMB 5,508,000 in 2023 from RMB 16,193,000 in 2022, a decline of approximately 66%[34] - Revenue from China accounted for RMB 72,275,000 in 2023, significantly up from RMB 19,688,000 in 2022, representing an increase of about 267%[37] - Revenue from Japan reached RMB 20,370,000 in 2023, compared to RMB 6,605,000 in 2022, showing a growth of approximately 208%[37] Expenses and Costs - Administrative expenses increased by approximately RMB 9.0 million due to a focus on developing overseas markets, leading to higher distribution costs[16] - The sales and distribution expenses were RMB 8.496 million, an increase from RMB 6.786 million in 2022, reflecting the company's strategic marketing efforts[18] - The group maintained a stable sales and distribution cost despite a significant increase in revenue, attributed to strict control over marketing expenditures[14] - The total interest expense for bank loans decreased to RMB 1,238,000 in 2023 from RMB 1,310,000 in 2022, reflecting a reduction of approximately 5.5%[42] - The expected credit loss provision for accounts receivable decreased to RMB 3,955,000 in 2023 from RMB 13,622,000 in 2022, indicating improved credit quality[49] - The group's employee benefit expenses (excluding directors' remuneration) increased to RMB 7,776,000 in 2023 from RMB 5,311,000 in 2022, an increase of 46.3%[44] Assets and Liabilities - The company's cash and cash equivalents increased to RMB 38.093 million from RMB 29.890 million in the previous year, reflecting improved liquidity[22] - The total assets less current liabilities amounted to RMB 172.252 million, up from RMB 166.475 million in 2022[24] - The total accounts payable increased to RMB 7,934,000 in 2023 from RMB 1,261,000 in 2022, indicating a significant rise in liabilities[52] - Non-current assets in China were valued at RMB 30,253,000 in 2023, down from RMB 33,638,000 in 2022, a decrease of about 10%[39] - Non-current assets in Japan were RMB 115,752,000 in 2023, slightly down from RMB 123,642,000 in 2022, reflecting a decrease of around 6%[39] Dividends and Shareholder Information - The company will not declare a final dividend for the year ended December 31, 2023[5] - The board has proposed not to declare a dividend for the year ending December 31, 2023, similar to the previous year[68] - The company did not declare a final dividend for the year 2023, consistent with the previous year[47] - The annual general meeting is scheduled for May 27, 2024, and shareholders must submit transfer documents by May 21, 2024, to be eligible to vote[86] - The annual performance announcement will be published on the stock exchange and the company's website, with the annual report sent to shareholders[87] Future Outlook and Strategy - The company anticipates that overall revenue from overseas customers will reach 80% in 2024[6] - The management plans to enhance service quality in the hotel business and expand overseas market partnerships to drive future growth[8] - The company plans to acquire hotel assets in Kyoto, Japan, with an investment of HKD 17,600,000 expected to be completed by December 31, 2023[57] - The company has not made any significant acquisitions or disposals during the review period, nor does it have plans for major investments as of December 31, 2023[58] Risks and Challenges - The company faces foreign exchange risks due to costs incurred in foreign currencies, particularly Japanese Yen, but currently has no plans to hedge against these risks[61] - The group faces risks from potential changes in visa application policies by the Chinese and Japanese governments, which may adversely affect business and revenue[85] - The majority of the group's revenue comes from Chinese customers, and a downturn in the Chinese economy could have a significant negative impact on business performance[85] - The group is subject to intensified competition from travel agencies, hotels, flight suppliers, online travel platforms, and alternative booking channels[85] - Natural disasters, terrorism, or outbreaks of infectious diseases could significantly affect consumer demand for travel services[85] Compliance and Governance - The group's financial statements for the year ending December 31, 2023, have been approved by its auditor, but no verification opinion has been issued[84] - The company maintains a public float of no less than 25% of its issued shares as per listing rules[78] - The group primarily engages in outbound tourism services through operational entities, which are prohibited from foreign ownership under Chinese regulations[79] - Japan is the most popular destination for the group's travel products, and any adverse developments in Japan's economic, political, or social environment could significantly impact the group's business performance[80] - The company has no significant contingent liabilities as of December 31, 2023[60]

Financial Performance - The company's overall revenue increased by approximately 115.5% compared to the same period in 2022, with a net profit attributable to equity shareholders of approximately RMB 2.7 million, a significant improvement from a net loss of approximately RMB 3.6 million in the first half of 2022[7]. - Total revenue for the first half of 2023 was RMB 27.1 million, with a gross profit margin of 47.2%, compared to RMB 12.6 million and a gross profit margin of 55.8% in the same period of 2022[13]. - The company reported a profit before tax of RMB 2,674 thousand for the six months ended June 30, 2023, compared to a loss of RMB 3,871 thousand in the same period of 2022[21]. - The company reported a profit of RMB 2,716,000 for the period, compared to a loss of RMB 3,609,000 in the same period last year[33]. - Cash flow from operating activities showed a net inflow of RMB 2,558 thousand, a significant improvement from a net outflow of RMB 14,424 thousand in the previous year[24]. Revenue Breakdown - Revenue from the hotel business surged by approximately 223.8% to about RMB 8.1 million, with the gross profit margin increasing from approximately 67.7% to about 80.7%[8]. - Revenue from tour sales was RMB 4.95 million, accounting for 18.3% of total revenue, while local tour sales generated RMB 6.69 million, accounting for 24.7%[13]. - Revenue from travel group sales and local tours reached RMB 12,542,000, a significant increase from RMB 434,000 in the previous year[33]. - Revenue from hotel operations increased to RMB 8,135,000, up from RMB 2,512,000, reflecting a growth of 224.5%[33]. - Revenue from duty-free store operations decreased to RMB 3,403,000 from RMB 9,481,000, indicating a decline of 64.1%[33]. Operational Metrics - The occupancy rates for the Shizuoka Hotel and Tokyo Hotel reached approximately 15.5% and 86.0%, respectively, showing significant improvement compared to the same period in 2022[8]. - The average revenue per traveler for tour sales increased to approximately RMB 8,583, while for local tours it rose to approximately RMB 356[8]. - Administrative expenses increased by approximately 18.9% compared to the same period in 2022, consistent with the recovery and expansion of the company's business scale[18]. - The accounts receivable turnover days increased to 71 days as of June 30, 2023, from 12 days on December 31, 2022, due to the resumption of hotel operations[81]. - The accounts payable turnover days also increased to 92 days as of June 30, 2023, from 24 days on December 31, 2022, attributed to the same operational resumption[81]. Future Plans and Strategies - The company plans to establish its own product brand, expand the design and manufacturing capabilities of the duty-free business, and explore customized travel products in the second half of 2023 and 2024[12]. - The company aims to apply for financial licenses related to cross-border payment, transfer, and exchange services, and intends to expand into hotel management to leverage its expertise in the industry[12]. - The company plans to acquire hotel assets in Kyoto, Japan, with an expected investment of HKD 17,600,000 by December 31, 2023[71]. - The company is investing HKD 11,440,000 in purchasing tour buses and hiring third-party operators[71]. Financial Position - Total assets less current liabilities amounted to RMB 165,352 thousand as of June 30, 2023, compared to RMB 166,475 thousand at the end of 2022[22]. - The company's net assets increased to RMB 129,366 thousand as of June 30, 2023, from RMB 128,304 thousand at the end of 2022[22]. - Cash and cash equivalents as of June 30, 2023, amounted to RMB 31,406,000, an increase from RMB 29,890,000 as of December 31, 2022[52]. - The total inventory as of June 30, 2023, was RMB 1,848,000, up from RMB 1,602,000 as of December 31, 2022[49]. - The group’s capital debt ratio remained stable at 26.6% as of June 30, 2023, compared to 26.7% on December 31, 2022[80]. Shareholder Information - The company’s major shareholders, including Mr. Yu Dingxin, hold a combined 70.23% equity interest, indicating strong control over the company[64]. - Major shareholders include York Yu Co., Ltd with 418,725,000 shares (41.87%) and David Xu Co., Ltd with 50,025,000 shares (5.00%)[67]. - The total shares controlled by Yu Dingxin, Pan Wei, and Xu Jiong amount to 702,312,000 shares, representing 70.23% of the company[67]. - The company has a stock option plan with 100,000,000 options available, but no options have been granted, exercised, or canceled since its adoption[69]. Risks and Challenges - The group faces intensified competition from travel agencies, hotels, airlines, online travel platforms, and alternative booking channels[99]. - Changes in visa application policies by the Chinese and Japanese governments may adversely affect the group's business and revenue[97]. - Fluctuations in the Japanese yen exchange rate will impact the group's operational performance and financial condition[97]. - Natural disasters, terrorism, war, and outbreaks of infectious diseases could significantly affect consumer demand for travel services[99]. - The group is subject to risks related to potential non-compliance with applicable Chinese laws and regulations regarding its contractual arrangements[99]. Corporate Governance - The company has adhered to all applicable corporate governance codes, except for the separation of the roles of Chairman and CEO, which are held by the same individual[86]. - The group maintains a prudent treasury policy, with cash primarily held in current accounts, mostly denominated in RMB and HKD[80]. - The group did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[83].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 TU YI HOLDING COMPANY LIMITED 途 屹 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1701） 截至二零二三年六月三十日止六個月之中期業績公告 途屹控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附屬公司（統稱為「本集 團」）截至二零二三年六月三十日止六個月（「回顧期間」）之未經審核簡明綜合中期業績。 財務概要 截至六月三十日止六個月 二零二三年 二零二二年 同比變動 人民幣千元 人民幣千元 （%） ...

Financial Performance - The overall revenue for the year ended December 31, 2022, increased to approximately RMB 263 million, representing a growth of about 26.5% compared to the previous year[7]. - The net loss attributable to equity shareholders decreased from approximately RMB 406 million in 2021 to about RMB 185 million in 2022[7]. - The hotel business revenue significantly rebounded from approximately RMB 10 million in 2021 to around RMB 61 million in 2022, achieving a gross margin of 30%[8]. - The e-commerce platform's gross margin for the duty-free store business improved from about 16% in 2021 to approximately 27% in 2022, an increase of 11 percentage points[8]. - The duty-free shop business generated revenue of RMB 16,193 million, accounting for 61.6% of total revenue, with a gross margin of 27%, up from 16% in the previous year[13]. - For the year ended December 31, 2022, total revenue from travel group sales in Japan was RMB 2,891 million, with an average revenue per passenger of RMB 56,681, representing 11.0% of total revenue and a gross margin of 16%[11]. - The net income from local tours and free travel products in Japan was RMB 303 million, with an average revenue per passenger of RMB 985, accounting for 1.2% of total revenue and a gross margin of 100%[11]. - The hotel business in Japan saw revenue increase from approximately RMB 1.0 million in 2021 to about RMB 6.1 million in 2022, with a gross margin recovering to 30%[15]. Business Strategy and Future Plans - The company plans to focus on launching customized travel products and applying for financial licenses related to cross-border payment services in 2023[10]. - The management believes that the duty-free store business has the potential for further revenue and margin improvements in 2023 and beyond[10]. - The company aims to enhance its business relationships with suppliers and e-commerce companies through the provision of cross-border payment services[10]. - The hotel business is expected to achieve an occupancy rate of 80% by the end of 2023[8]. - The company has successfully launched two popular products under its HDT brand aimed at addressing aging issues[8]. Cost Management and Financial Health - Administrative and other expenses decreased by approximately RMB 21.5 million due to strict cost control measures implemented by the company[20]. - The company maintained a cautious approach to liquidity, with interest-bearing bank borrowings of approximately RMB 59.1 million as of December 31, 2022[21]. - The capital debt ratio remained stable at 26.7% as of December 31, 2022, compared to 20.0% a year earlier[34]. - Accounts receivable turnover days improved to 12 days from 24 days year-on-year[34]. - Accounts payable turnover days increased to 24 days from 16 days year-on-year[34]. Corporate Governance - The company has a strong commitment to corporate governance, adhering to all applicable provisions of the corporate governance code[58]. - The company has established various committees including audit, remuneration, and nomination committees to enhance governance[44]. - The management team has extensive experience across various sectors, including tourism, technology, and finance, ensuring diverse expertise[50][47]. - The company emphasizes transparency and accountability to all shareholders through effective internal control measures[58]. - The company has not appointed a CEO, which deviates from the corporate governance code C.2.1 that requires a clear division of responsibilities between the chairman and CEO[65]. - The board consists of four executive directors and four independent non-executive directors, providing a diverse range of industry and professional expertise[64]. - All directors have confirmed compliance with the standard code for securities trading as of December 31, 2022, and up to the date of the report[60]. - The board is responsible for overseeing the company's business, strategic decisions, and performance, ensuring decisions are made in the best interest of the company[61]. Risk Management and Internal Controls - The company has established a risk management and internal control system aimed at managing significant risks rather than eliminating them, with regular assessments and reporting to the board[111]. - An external professional firm is engaged to evaluate the effectiveness of the company's risk management and internal control systems, focusing on significant risks[113]. - The board and audit committee found no significant internal control deficiencies and will follow up on all recommendations made by the external consultant[116]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development as a key business objective, focusing on environmental, social, and governance (ESG) initiatives[139]. - The company aims to integrate corporate social responsibility into its business strategy and management practices[140]. - The board of directors is responsible for overseeing the company's ESG issues and ensuring alignment with strategic growth[142]. - The ESG working group is tasked with monitoring and evaluating the company's ESG performance and compliance with relevant laws[144]. - The total greenhouse gas emissions decreased from 191 tons CO2e in 2021 to 182 tons CO2e in 2022, with a direct emission reduction from 30 tons to 21 tons CO2e[164]. - The company maintained a greenhouse gas emission intensity of 2 tons CO2e per employee for both 2021 and 2022, with employee numbers slightly decreasing from 77 to 75[165]. - The company reported a significant increase in non-hazardous waste due to the opening of a hotel in Tokyo, highlighting a focus on waste management and recycling initiatives[169]. - The company has implemented measures to reduce carbon emissions by encouraging employees to use public transport and minimizing unnecessary travel[160]. Employee Engagement and Diversity - The company has increased employee engagement initiatives to maintain a diverse and vibrant work environment, supporting career development and well-being[190]. - The total number of employees decreased from 77 in 2021 to 75 in 2022, with a notable reduction in full-time employees from 75 to 69[191]. - The employee turnover rate improved significantly to approximately 3% in 2022, down from higher rates in 2021, particularly in Japan where it dropped from 135% to 0%[192]. - The company achieved a 100% training rate for employees in 2022, with a total training time of 1,014 hours, compared to 1,131 hours in 2021[200]. - The company emphasizes a non-discriminatory and diverse workplace, ensuring equal opportunities for all employees regardless of gender, ethnicity, or other factors[193].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 TU YI HOLDING COMPANY LIMITED 途 屹 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1701） 截至二零二二年十二月三十一日止年度之全年業績公告 途屹控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附屬公司（統稱為「本集 團」）截至二零二二年十二月三十一日止年度（「回顧年度」）之經審核綜合業績。 業績概要 截至十二月三十一日止年度 二零二二年 二零二一年 同比 人民幣千元 人民幣千元 變動(%) ...

Financial Performance - The overall revenue increased by approximately 29.6% compared to the same period in 2021, with a net loss attributable to shareholders of approximately RMB 36 million, a reduction of about 69.8%[33] - The overall gross margin improved significantly from approximately 20.1% in the first half of 2021 to approximately 55.8% in the first half of 2022, due to reduced IT and employee costs and a focus on developing proprietary products[35] - The net revenue from tour sales, local tours, and free travel products reached RMB 12,581 thousand, an increase from RMB 9,708 thousand in the same period last year, representing a growth of approximately 29.3%[48] - The gross profit for the first half of 2022 was RMB 7,015 thousand, significantly up from RMB 1,956 thousand in the previous year, indicating a gross margin improvement[48] - The company reported a pre-tax loss of RMB 3,871 thousand, a significant improvement from a loss of RMB 13,901 thousand in the same period last year[48] - The company recorded a total comprehensive loss of RMB 13,315 thousand for the period, compared to a loss of RMB 11,885 thousand in the same period last year[48] - For the six months ended June 30, 2022, total revenue was RMB 12,581 thousand, an increase of 29.3% compared to RMB 9,708 thousand for the same period in 2021[61] Revenue Breakdown - The online duty-free store business generated revenue of RMB 8,515 million, accounting for 67.7% of total revenue, with a gross margin of 46.5%[38] - The hotel business in Japan contributed RMB 2,512 million in revenue, representing 20.0% of total revenue, with a gross margin of 67.7%[38] - Revenue from online duty-free store business was RMB 8,515 thousand, slightly decreased by 2.2% from RMB 8,707 thousand in the previous year[61] - Hotel business revenue increased significantly to RMB 2,512 thousand, compared to RMB 165 thousand in the same period last year[61] - Revenue from domestic trade duty-free store business was RMB 966 thousand, which was not present in the previous year[61] - Revenue from domestic customers in mainland China was RMB 9,117 thousand, a decrease of 4.5% from RMB 9,543 thousand in the previous year[62] - Revenue from Japan increased significantly to RMB 2,876 thousand from RMB 165 thousand in the same period last year[62] Cost Management - The company has implemented measures to control operating costs and maintain stable working capital as of June 30, 2022[37] - Sales and distribution expenses decreased by about 25.3% compared to the same period last year, due to the completion of the initial high investment phase of the online duty-free store business[42] - Administrative expenses increased by approximately 10.5% to RMB 8.6 million, attributed to the resumption of hotel operations in Japan starting May 2022[43] - The cost of services provided increased to RMB 810,000 from RMB 772,000, while the cost of goods sold decreased significantly from RMB 6,980,000 to RMB 4,756,000, indicating improved efficiency[68] Cash Flow and Liquidity - Cash and cash equivalents decreased to RMB 31,641 thousand from RMB 43,614 thousand at the end of the previous year, reflecting a net decrease of RMB 19,319 thousand[51] - The net cash flow from operating activities was negative at RMB 14,424 thousand, compared to a positive cash flow of RMB 404 thousand in the same period last year[51] - Cash and cash equivalents decreased to RMB 31,641,000 from RMB 43,614,000, highlighting a liquidity contraction[84] - Approximately RMB 1,540 million in short-term deposits was pledged to banks as of June 30, 2022, down from RMB 1,750 million as of December 31, 2021[118] Shareholder Information - The company will not declare an interim dividend for the six months ended June 30, 2022, due to the net loss recorded during the review period[33] - The group did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[78] - The company’s issued and fully paid ordinary shares remain at 1,000,000,000 shares with a par value of HKD 0.01 as of June 30, 2022[95] - Major shareholders, including Mr. York Yu, hold 702,312,000 shares, representing 70.23% of the company[97] - Major shareholders include York Yu Co., Ltd with 418,725,000 shares (41.87%) and David Xu Co., Ltd with 50,025,000 shares (5.00%) [101] Market Expansion and Strategy - The company plans to further develop online sales of domestic products and increase the variety of niche products and proprietary brand offerings in the future[37] - The company has expanded its online duty-free store business into the Taiwan market, recognizing the potential demand for Japanese cosmetic products[34] - The company has invested significantly in upgrading its IT platform to enhance customer interaction features such as live streaming and group buying[34] - The company has invested in optimizing marketing methods and related IT platforms, utilizing HKD 17,600,000 [106] - The company plans to acquire hotel assets in Kyoto, Japan, with an expected expenditure of HKD 17,600,000 by December 31, 2023 [106] Risks and Challenges - The company faces foreign exchange risks due to costs in foreign currencies, including Japanese Yen, Australian Dollar, and New Zealand Dollar [112] - The majority of the group's revenue comes from Chinese customers, and a downturn in the Chinese economy could have a significant adverse effect on the group's business[132] - Changes in visa application policies by the Chinese and Japanese governments may negatively affect the group's business and revenue[132] - Natural disasters, terrorism, wars, and outbreaks of infectious diseases could adversely impact consumer demand for travel activities, affecting the group's business performance[132] - The group faces intensified competition from travel agencies, hotels, flight suppliers, online travel platforms, and alternative booking channels[132] - The group may face regulatory actions if the contractual arrangements are deemed non-compliant with applicable Chinese laws and regulations[132] Employee Information - As of June 30, 2022, the group employed a total of 77 full-time employees, with employee benefits including salaries and discretionary bonuses based on performance[114]

Financial Performance - Total revenue for the year ended December 31, 2021, decreased to approximately RMB 20.8 million, a decline of about 32.7% compared to the previous year[5] - The net loss attributable to shareholders for the year was approximately RMB 40.6 million, compared to RMB 45.3 million for the previous year[5] - Revenue from the duty-free business increased by approximately 38.4% to about RMB 18.1 million, up from RMB 13.1 million in the previous year[7] - The hotel business generated revenue of RMB 1.04 million, with a gross margin of 5.0%, down from RMB 4.52 million the previous year[10] - The company will not declare a final dividend for the year ended December 31, 2021, due to the net loss recorded[5] - Sales and distribution expenses decreased by approximately RMB 5.2 million for the year ended December 31, 2021, due to reduced marketing expenses related to outbound travel products[13] - Other income and net gains decreased, primarily due to a foreign exchange loss of approximately RMB 4.1 million, attributed to the suspension of outbound travel activities[14] - Administrative and other expenses increased by approximately RMB 7.2 million, mainly due to losses from lease modifications in 2021[15] Business Strategy and Development - The company plans to continue investing in the duty-free business and expand its product design and manufacturing capabilities[9] - The company has launched its own brand "HDL Mask" in both domestic and Japanese markets starting in 2021[7] - The company plans to utilize net proceeds from its IPO for various purposes, including acquiring hotel assets in Kyoto, Japan, with an expected cost of RMB 17.6 million[22] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share over the next two years[49] - New product launches are expected to contribute an additional $50 million in revenue in the upcoming fiscal year[45] - The company is investing $20 million in research and development for new technologies aimed at enhancing customer experience[46] - A strategic acquisition is in progress, which is projected to increase the company's annual revenue by 10%[48] - The management team has set a performance guidance of 20% revenue growth for the next fiscal year[44] - The company has successfully reduced operational costs by 12% through efficiency improvements[49] - User retention rates improved to 85%, up from 75% in the previous year[38] - The company is exploring partnerships with local businesses to enhance service offerings and drive growth[49] Corporate Governance - The company has maintained strict corporate governance principles, adhering to all applicable provisions of the corporate governance code as per the listing rules[54] - The board consists of four executive directors and four independent non-executive directors, ensuring a diverse range of industry and professional expertise[60] - The chairman and CEO roles are distinct, with the chairman leading the board and ensuring effective governance practices[61] - All independent non-executive directors have confirmed their independence according to the relevant guidelines, ensuring compliance with listing rules[62] - The company has adopted a standard code for securities trading by directors and relevant employees, with no reported violations[56] - Each director is required to retire and seek re-election at least once every three years, promoting accountability[64] - The company has a structured approach to onboarding new directors, providing them with necessary information and guidelines[65] - The board regularly reviews the contributions of its members to ensure adequate time commitment to their responsibilities[58] - The company has a dedicated sales manager overseeing online sales and marketing strategies, indicating a focus on digital expansion[51] - The company has a secretary with over 20 years of experience in compliance and corporate governance, enhancing its regulatory oversight[52] - The board of directors is collectively responsible for guiding and supervising the company's affairs, ensuring effective internal controls and risk management systems[66] - The audit committee, composed of three independent non-executive directors, reviews financial information and internal control systems, ensuring compliance with accounting principles[71] - The remuneration committee has reviewed the compensation packages for directors and senior management for the year ending December 31, 2021[73] - The nomination committee has held two meetings to assess the independence of non-executive directors and review the board diversity policy[74] - The company has adopted a board diversity policy, emphasizing the importance of diversity in maintaining competitive advantage[76] - The nomination committee is committed to reviewing the board's structure and composition annually to ensure a balanced and diverse board[76] - All directors are encouraged to participate in ongoing professional development to enhance their knowledge and skills[69] - The company provides training and updates on regulatory developments to ensure compliance and strengthen governance awareness among directors[69] - The audit committee has reviewed the group's interim and annual performance for the year ending December 31, 2021[71] - The board retains decision-making authority on significant matters, including policies, strategies, and major transactions[67] - The company has adopted a dividend policy aimed at balancing shareholder expectations and prudent capital management, with no preset dividend payout ratio[83] - The board of directors has committed to holding at least four meetings annually, approximately once every quarter, to discuss financial performance, business operations, and strategic development[87] - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives[92] - The risk management and internal control systems are designed to manage, rather than eliminate, risks that could impede business objectives[94] - The company has established a nomination policy to ensure a balanced skill set, experience, and diverse perspectives within the board[81] - The board has a regular attendance record, with all executive directors attending 100% of board meetings held during the year[87] - The company emphasizes the importance of independent non-executive directors in maintaining board independence and effectiveness[81] - The audit committee assists the board in overseeing the effectiveness of risk management and internal control systems[93] - The company has no historical dividend distribution guarantees for future payouts, as any proposed dividends must be approved by shareholders[83] - The board is committed to maintaining ongoing dialogue with shareholders, particularly during annual general meetings[91] - The company has engaged an external professional firm to conduct an annual review of its risk management and internal control systems, with no significant internal control deficiencies found[97] - The external auditor's fee for the audit services provided to the company for the year ending December 31, 2021, was RMB 826,000[104] - The board of directors is responsible for the preparation of the financial statements for the year ending December 31, 2021[98] - The company has implemented a disclosure policy to ensure the proper handling of confidential information and compliance with market regulations[102] - The company has established a shareholder communication policy to address shareholder concerns effectively[112] - The board and audit committee believe that the risk management and internal control systems are effective and adequate[97] - The company has not made any changes to its memorandum and articles of association since its listing[111] - The company has a sufficient number of qualified personnel in its accounting and financial reporting team, with adequate training provided[97] - The company has adopted a dividend policy in accordance with corporate governance codes[113] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and corporate social responsibility, focusing on community and stakeholder engagement[115] - The company has established a core governance framework to align environmental, social, and governance (ESG) initiatives with strategic growth, emphasizing sustainable development commitments[118] - The ESG working group, comprising core members from various departments, is responsible for monitoring and evaluating the company's ESG performance and compliance with relevant laws and regulations[121] - The ESG report covers significant aspects of the company's operations in China and Japan, including its offices in Hangzhou, Wenzhou, Lian, Shanghai, and hotels in Shizuoka and Tokyo[122] - The company actively engages with stakeholders, including employees, investors, and suppliers, to gather feedback and enhance stakeholder participation in its long-term prosperity[128] - The company is committed to environmental protection and has implemented policies for energy conservation, pollution prevention, and waste reduction, with a focus on carbon reduction and water conservation[132] - No significant violations of air and greenhouse gas emissions regulations were reported during the year, indicating compliance with relevant environmental laws[133] - The company plans to set quantitative targets for environmental performance in the next fiscal year, considering the impact of the COVID-19 pandemic on data stability[132] - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, ensuring consistency and transparency in reporting[123] - The company recognizes the importance of good ESG performance for sustainable business development and community well-being[129] - The ESG working group regularly reports to the board to assess and identify ESG risks and opportunities, ensuring effective internal control mechanisms[121] - The total greenhouse gas emissions decreased by 80% from 959 tons CO2e in 2020 to 191 tons CO2e in 2021[140] - Direct greenhouse gas emissions from fuel consumption dropped by 91%, from 342 tons CO2e in 2020 to 30 tons CO2e in 2021[140] - Indirect greenhouse gas emissions from electricity purchases decreased by 48%, from 302 tons CO2e in 2020 to 158 tons CO2e in 2021[140] - Total energy consumption reduced by 79%, from 2,090 MWh in 2020 to 431 MWh in 2021[157] - Direct energy consumption fell by 92%, from 1,507 MWh in 2020 to 123 MWh in 2021[157] - Water usage decreased by 88%, from 21,046 cubic meters in 2020 to 2,583 cubic meters in 2021[164] - The total amount of non-hazardous waste generated was 1,015 kg in 2021, with a waste intensity of 13 kg per employee[149] - The company plans to implement energy-saving measures, including installing light sensors and replacing incandescent bulbs with LED lights[155] - The company encourages employees to use public transport and conduct meetings via phone to reduce fuel consumption[138] - The company has upgraded its data collection system to improve waste disposal reporting in line with environmental guidelines[148] Human Resources and Employee Welfare - The company had a total of 77 employees as of December 31, 2021, down from 115 in 2020, representing a decrease of approximately 33%[176] - The employee turnover rate for the year was approximately 43%, with a notable 87% turnover rate for employees aged over 50[176] - The company has implemented various measures to improve indoor air quality, including regular cleaning of air devices and ensuring ventilation systems are effective[168] - The company recognizes the potential impacts of climate change on its operations and has established risk management policies to identify and mitigate climate-related risks[169] - The company is monitoring changes in regulations and market trends related to climate change to avoid increased costs and reputational risks[172] - The company has set goals to gradually reduce energy consumption and greenhouse gas emissions in line with global carbon neutrality objectives[172] - The company employs a non-discriminatory and diverse hiring policy, ensuring equal opportunities for all employees regardless of gender, ethnicity, or other factors[178] - The company provides a comprehensive benefits package, including paid leave and performance-based bonuses, to motivate employees[179] - The company emphasizes the importance of employee well-being by organizing activities to promote work-life balance and strengthen family connections[180] - The group achieved a total employee training rate of 74%, with a total training duration of 1,131 hours in the fiscal year[185] - Male employees accounted for 47% of the trained workforce, with an average training duration of 14.41 hours, while female employees represented 53% with an average of 14.95 hours[185] - Senior management training participation was 9%, with an average training duration of 13 hours, while general employees had a participation rate of 78% and an average of 15.24 hours[185] - The group has not reported any work-related injuries or fatalities in the past three years, maintaining a zero-loss day record due to work injuries[182] - The group collaborates with 126 suppliers, with 85 located in China and 41 in Japan, prioritizing local suppliers to reduce carbon emissions[189] - The group has established compliance procedures to ensure adherence to applicable laws, including the Japanese Food Sanitation Act, with no significant violations reported in the fiscal year[190] - The group emphasizes the importance of quality service and products, having received multiple awards for excellence in service over the past years[192] - The group has implemented a comprehensive occupational health and safety mechanism across all subsidiaries, ensuring regular training and safety drills[182] - The group has a robust employee performance evaluation system that influences compensation and position adjustments based on annual assessments[183] - The group has a zero-tolerance policy for child labor and forced labor, with no reported violations in the fiscal year[186] - The company has not received any complaints regarding its products and services during the year[194] - The "Tuyi" brand has established itself as a mature brand in the outbound tourism product and service sector over ten years of operation[194] - The company adheres to various laws and regulations related to advertising and consumer rights protection, ensuring the authenticity of content[196] - There were no recorded training sessions for anti-corruption due to health and safety concerns during the COVID-19 pandemic[197] - The company is not aware of any significant issues related to non-compliance with bribery, extortion, fraud, or money laundering laws during the year[198]

Revenue Performance - Total revenue decreased to approximately RMB 97 million, a decline of about 55.9% compared to the same period in 2020[39] - Total revenue for the six months ended June 30, 2021, was RMB 9,708,000, compared to RMB 22,020,000 for the same period in 2020, representing a decline of approximately 56%[76] - The company recorded a net loss attributable to shareholders of approximately RMB 120 million, a decrease of about 13.2%[39] - The company reported a loss for the period of RMB 12.0 million, compared to a loss of RMB 13.9 million in the same period in 2020[54] - The company reported a total comprehensive loss of RMB 11,885,000 for the six months ended June 30, 2021, compared to a loss of RMB 13,873,000 for the same period in 2020, indicating an improvement of about 14.3%[63] Duty-Free Business - Online duty-free store revenue increased by approximately 48.6% year-on-year during the review period[39] - The revenue from the online duty-free business accounted for 89.5% of total revenue, with a gross margin of 22.1%[44] - The duty-free business revenue increased by approximately 48.6% compared to the same period in 2020, driven by enhancements in the online platform and product offerings[47] - Revenue from duty-free store operations increased to RMB 8,707,000 in 2021 from RMB 5,858,000 in 2020, marking a growth of about 48%[76] Expenses and Cost Management - Administrative expenses reduced by approximately 40.1% to about RMB 78 million[41] - Sales and distribution expenses rose by about 36.8% compared to the same period in 2020, reflecting increased investment in promoting the online duty-free business[48] - Administrative expenses decreased by approximately 40.1% to around RMB 7.8 million in the first half of 2021, due to cost control measures implemented by the company[49] Financial Position - The asset-liability ratio remained stable at approximately 33.2%, similar to the level in 2020[41] - The total assets less current liabilities amounted to RMB 234.9 million, down from RMB 248.5 million at the end of 2020[51] - The company’s net asset value was RMB 189.3 million, compared to RMB 201.2 million at the end of 2020[51] - As of June 30, 2021, the total equity amounted to RMB 189,343,000, a decrease from RMB 201,228,000 as of January 1, 2021, reflecting a decline of approximately 5.4%[63] - Cash and cash equivalents at the end of the period were RMB 21.1 million, down from RMB 44.0 million at the beginning of the period[57] Cash Flow and Liquidity - The net cash flow from operating activities was RMB 404 thousand, a significant improvement from a negative RMB 11.7 million in the prior year[57] - The company’s financial strategy includes maintaining a strong liquidity position with cash and equivalents significantly reduced to manage operational needs[100] Shareholder Structure - The company has a significant shareholder structure, with Mr. York Yu, Mr. King Pan, and Mr. Jeffery Xu each holding 702,312,000 shares, representing 70.23% of the total shares[116] - York Yu Co., Ltd holds 418,725,000 shares, accounting for 41.87% of the company's shares, while David Xu Co., Ltd holds 50,025,000 shares, representing 5.00%[120] - King Pan Co., Ltd and Jeffery Xu Co., Ltd hold 121,062,000 shares (12.11%) and 112,500,000 shares (11.25%) respectively[120] Future Plans and Developments - The company plans to enhance its online duty-free business through technology upgrades and collaborations with local Japanese enterprises[39] - A new face mask product is currently in the import clearance and application stage, expected to launch in the second half of 2021[39] - The company has allocated HKD 17.6 million for the acquisition of hotel assets in Kyoto, Japan, expected to be utilized by December 31, 2022[125] Risks and Challenges - Major risks include economic and political changes in Japan, which is the most popular destination for the company's tours[151] - The company faces increased competition from travel agencies, hotels, airlines, and online travel platforms[151] - The majority of the company's revenue comes from Chinese customers, making it vulnerable to economic downturns in China[151] - Future changes in visa application policies by the Chinese and Japanese governments may adversely affect the company's business and revenue[152]

Financial Performance - The company's revenue for the year ended December 31, 2020, decreased to approximately RMB 309 million, a decline of about 86.8% compared to 2019[7] - The net loss attributable to shareholders for the year was approximately RMB 453 million, compared to a profit of RMB 256 million in 2019[7] - The company's revenue for the year ended December 31, 2020, was RMB 30,869 thousand, a significant decrease compared to RMB 233,803 thousand in 2019[15] - The average revenue per passenger decreased drastically, with a 90% reduction in tour sales due to the COVID-19 pandemic and global travel restrictions[17] - Hotel business revenue and passenger numbers dropped by over 80%, reflecting the adverse impact of the pandemic on travel-related services[21] - The company experienced a 90% reduction in net income from visa application services, primarily due to the decline in travel demand[20] - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2020, representing a growth of 15% compared to the previous year[52] - The company reported a net profit margin of 12% for 2020, reflecting improved operational efficiency and cost management[56] Business Operations and Strategy - The company suspended outbound travel group sales and independent travel products since January 2020 due to the COVID-19 pandemic[7] - The "Store Manager Direct Mail" online duty-free store business was launched, with over 5,000 products available for sale by the end of 2020[10] - Registered users of the "Store Manager Direct Mail" platform reached over 300,000 by the end of December 2020[10] - The company developed and launched a new small group day tour product in Hangzhou, which has shown promising results[10] - A new travel destination merchant SAAS system was established in Q4 2020 to enhance digital marketing capabilities for local merchants[11] - The company aims to adapt to changing consumer behaviors and needs post-pandemic by providing customized products and services[11] - The company plans to expand its direct mail business from China to Singapore, Thailand, and Malaysia in 2021, aiming to capture the growing demand for cross-border online shopping[12] - The group has focused on the online duty-free store business named "Store Manager Direct Mail" and has reassessed its operational strategies to enhance competitiveness during the industry's recovery[31] Cost Management and Financial Health - The board of directors recommended not to declare a final dividend for the year ended December 31, 2020, due to the net loss incurred[7] - Sales and distribution expenses increased by approximately RMB 4.6 million in 2020, compared to RMB 7.3 million in 2019, due to increased marketing efforts for the cross-border online store[25] - Financial and contract asset impairment losses amounted to approximately RMB 11.7 million, resulting from increased receivables due to extended credit periods[27] - As of December 31, 2020, the group had interest-bearing bank borrowings of approximately RMB 67.2 million, with RMB 29.0 million classified as current liabilities due within one year[32] - The capital debt ratio as of December 31, 2020, was 33.4%, compared to 23.6% as of December 31, 2019[50] - The accounts receivable turnover days increased to 212 days as of December 31, 2020, from 46 days as of December 31, 2019, due to reduced revenues and operational delays caused by the pandemic[50] - The accounts payable turnover days increased to 64 days as of December 31, 2020, from 24 days as of December 31, 2019, as the group aimed to delay settlements[50] Corporate Governance - The company has a strong governance framework in place, adhering to the corporate governance code as per the Hong Kong Stock Exchange's listing rules[73] - The board consists of four executive directors and four independent non-executive directors, ensuring diverse industry and professional representation[78] - The company has maintained compliance with the standard code for securities trading by directors and relevant employees throughout the reporting period[74] - The chairman and CEO roles are clearly separated, with the chairman leading the board's operations[79] - The company has a commitment to good corporate governance standards, which are essential for protecting shareholder interests and enhancing corporate value[73] - All independent non-executive directors have confirmed their independence according to the relevant guidelines[80] - The company has established three-year service contracts for all executive and independent non-executive directors[83] - The board regularly reviews the contributions of directors to ensure they fulfill their responsibilities adequately[76] Risk Management and Compliance - The company has established a risk management and internal control system to identify, assess, and manage significant risks affecting its business and operations[112] - The audit committee assists the board in overseeing the effectiveness of the risk management and internal control systems[113] - The company has engaged an external professional firm to conduct an annual review of its risk management and internal control systems, with no significant internal control deficiencies found[117] - The company has established a disclosure policy to ensure strict prohibition of unauthorized access and use of insider information[122] - The company has a mechanism to restrict access to insider information based on a "need-to-know" basis[122] Environmental and Social Responsibility - The company has established an environmental, social, and governance (ESG) strategy, overseen by a dedicated committee[136] - The total greenhouse gas emissions decreased by 82% from 5,347 tons of CO2 equivalent in 2019 to 959 tons in 2020[152] - The company plans to install light sensors to reduce electricity consumption and gradually replace incandescent bulbs with energy-efficient LED lights[145] - The company encourages employees to use public transportation and to communicate via phone instead of traveling for meetings[152] - The company has not reported any significant air pollution or hazardous waste generation from its operations[146] - The company is committed to sustainable practices and aims to minimize its carbon footprint through various energy-saving initiatives[155] - The company has implemented various measures to manage water resources effectively, including immediate repairs for leaking taps and encouraging water conservation[161] - The company has not reported any hazardous waste generation, focusing instead on recycling and reducing environmental impact[163] Employee Relations and Training - The number of employees decreased from 179 in 2019 to 115 in 2020, impacting greenhouse gas emissions intensity[152] - Employee training hours decreased from 1,772 hours in 2019 to 990 hours in 2020, representing a 44% reduction[173] - The number of employees participating in training dropped from 128 in 2019 to 69 in 2020, a decrease of 46%[173] - Senior management training hours fell significantly by 87%, from 278 hours in 2019 to just 36 hours in 2020[173] - The company emphasizes the importance of ethical behavior and integrity among employees, with no reported unethical claims during the reporting period[184] - The company has established a mechanism for employees to report misconduct, ensuring confidentiality and prompt action[184] Future Outlook and Growth Plans - The company provided guidance for 2021, projecting revenue growth of 10% to 12%, aiming for a target of 1.32 billion to 1.344 billion[63] - New product launches are expected to contribute an additional 200 million in revenue in 2021, focusing on enhancing user experience and engagement[64] - The company is investing in technology development, with a budget of 50 million allocated for R&D in new travel-related technologies[66] - Market expansion plans include entering three new international markets by the end of 2021, targeting a 5% increase in overall market share[62] - The company is exploring potential acquisitions to enhance its service offerings, with a budget of 100 million set aside for strategic acquisitions[63] - A new marketing strategy is being implemented, aiming to increase brand awareness by 30% through digital channels[64]

Financial Performance - For the six months ended June 30, 2020, the company's revenue decreased to approximately RMB 22.0 million, a decline of about 81.3% compared to the same period in 2019[8]. - The net loss attributable to shareholders for the same period was approximately RMB 13.9 million, compared to a net profit of RMB 11.2 million in the corresponding period of 2019[8]. - The group's revenue for the six months ended June 30, 2020, was RMB 22,020 thousand, a decrease of approximately 81.3% compared to RMB 117,916 thousand in the same period of 2019[30]. - Gross profit for the same period was RMB 3,297 thousand, down from RMB 36,951 thousand, indicating a significant decline in profitability[30]. - The company reported a loss before tax of RMB 16,732 thousand for the six months ended June 30, 2020, compared to a profit of RMB 17,187 thousand in the same period of 2019[30]. - The net cash flow from operating activities for the first half of 2020 was a negative RMB 11,663 thousand, compared to a positive RMB 28,239 thousand in the first half of 2019[34]. - The company reported a loss of RMB 13,853,000 for the period, which is a significant increase from the loss of RMB 20,000 for the same period last year[45]. - The total comprehensive income for the period was RMB (10,948,000), compared to RMB (13,873,000) for the previous period, indicating an improvement of approximately 21%[45]. Impact of COVID-19 - The company suspended the sale of outbound travel tours and free travel products starting January 2020 due to the COVID-19 pandemic, which significantly impacted the industry[9]. - The company’s business development has been severely hindered by the unprecedented crisis caused by the COVID-19 pandemic, leading to a halt in the travel and hotel industry[8]. - Revenue from the travel group sales decreased by approximately 95.7% and the number of travelers decreased by 95.6% compared to the same period in 2019, primarily due to the impact of the COVID-19 pandemic[13]. - Revenue from local tours decreased by approximately 51.7% and the number of travelers decreased by 49.5% compared to the same period in 2019, reflecting similar challenges faced by the travel group segment[16]. - Revenue from the sale of free independent travel products decreased by approximately 93.54% and the number of travelers decreased by 66.6% compared to the same period in 2019, again due to the pandemic's impact[17]. - Revenue from visa application services decreased by approximately 97.1% and the number of travelers decreased by 94.2% compared to the same period in 2019, highlighting the severe downturn in travel-related services[18]. - Hotel business revenue decreased by approximately 70.8% and the number of travelers decreased by 66.2% compared to the same period in 2019, as the company continued to operate its hotels amid a significant drop in domestic travel[19]. Cost Management and Financial Strategy - The company implemented several short-term measures to control operating costs, with employee-related costs accounting for over 50% of total operating costs during the review period[9]. - The company improved its capital structure, with the debt-to-equity ratio decreasing from approximately 92.0% at the end of 2018 to about 23.6% in 2019[9]. - The company has taken measures to maintain stable and continuous liquidity and operational funding during the pandemic[9]. - As of June 30, 2020, the company's interest-bearing bank borrowings amounted to RMB 595 million, with RMB 53 million due within one year, indicating sufficient liquidity to maintain operations during the pandemic[11]. - The company incurred financing costs of RMB 604 thousand in the first half of 2020, a decrease from RMB 1,805 thousand in the same period of 2019[30]. - The company’s cash and cash equivalents at the end of the reporting period were RMB 31,077 thousand, down from RMB 56,113 thousand at the beginning of the period[42]. Business Development and Future Outlook - The company is recognized as a prominent outbound travel product and service provider in China, focusing on Japan outbound travel tours and related services[9]. - The company is focusing on expanding its online duty-free business and developing a mobile application to integrate travel products and enhance customer experience[11]. - New local travel products are being designed and developed, with expectations for launch in the third quarter of 2020, aimed at increasing revenue during the pandemic[11]. - The company believes that the tourism industry will gradually recover, driven by accumulated demand and major events like the Tokyo Olympics, positioning itself to capture these opportunities[11]. Shareholder and Equity Information - The board of directors recommended not to declare a dividend for the six months ended June 30, 2020, due to the recorded net loss and ongoing adverse effects of the pandemic[8]. - The company has not declared an interim dividend for the six months ended June 30, 2020, consistent with the previous year[129]. - The company’s total equity amounted to RMB 241,684,000, a decrease from RMB 252,652,000 as of January 1, 2020, reflecting a decline of approximately 4.3%[45]. - The company has a significant ownership concentration, with Mr. York Yu, Mr. King Pan, and Mr. Jeffery Xu each holding 703,392,000 shares, representing 70.34% of the total shares[102][103][104]. Risks and Challenges - Major risks include potential adverse changes in Japan's economic, political, or social environment, which could significantly impact the group's business performance[142]. - The group faces increased competition from travel agencies, hotels, flight suppliers, online travel platforms, and alternative booking channels[142]. - The majority of the group's revenue is derived from Chinese customers, making it vulnerable to economic downturns in China[142]. - Future changes in visa application policies by the Chinese and Japanese governments may negatively affect the group's business and revenue[142]. - Fluctuations in the Japanese yen exchange rate will impact the group's financial performance[142]. - The company faces foreign exchange risks due to costs in foreign currencies, including Japanese Yen, Australian Dollar, and New Zealand Dollar, but currently has no plans to hedge these risks[120].