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].

Financial Performance - The total revenue for the year ended December 31, 2019, was approximately RMB 233.8 million, an increase of 14.0% compared to RMB 205.1 million in 2018[22]. - The gross profit for 2019 was RMB 64.9 million, representing a 32.6% increase from RMB 49.0 million in the previous year[22]. - The profit attributable to the owners of the parent company for the year was RMB 25.6 million, a significant increase of 266.2% from RMB 7.0 million in 2018[22]. - Adjusted profit for the year was RMB 33.5 million, up 48.5% from RMB 22.5 million in 2018[22]. - The group's profit and adjusted profit for the year ended December 31, 2019, were approximately RMB 25.6 million and RMB 33.5 million, representing significant increases of RMB 18.6 million (266.2%) and RMB 10.9 million (48.5%) compared to the same period in 2018, primarily driven by increased gross profit from tour groups and local tours[32]. - Revenue from the sale of tour groups and local tours contributed 74.7% to the total revenue for the year, with total revenue from this segment amounting to RMB 174.6 million, up from RMB 162.8 million in 2018[33][37]. - Revenue from hotel operations increased by approximately RMB 18.9 million (147.7%) to RMB 31.7 million in 2019, contributing about 13.6% to total revenue, compared to 6.2% in 2018[33][42]. - The gross profit margin for the sale of tour groups and local tours increased from 9.4% in 2018 to 19.1% in 2019, driven by a focus on higher-cost Japanese travel routes[33][38]. - The gross profit for the year ended December 31, 2019, was approximately RMB 64.9 million, with a gross margin of 27.8%, up from RMB 49.0 million and 23.9% in 2018, indicating improved profitability from travel packages and local tours[51]. Customer Engagement and Market Strategy - The number of customers for local one-day tour products in Japan increased more than fivefold compared to the previous year[26]. - The company plans to focus more on original travel products, service design, and destination resource development in 2020[27]. - The group aims to create more diversified products and quality services to generate value for shareholders in the coming year[27]. - The company aims to create a "one-stop Japan travel supply" and is exploring travel destination resources in Japan to optimize its development strategy[46]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of the next fiscal year[86]. - The management team emphasized a focus on improving customer experience, aiming for a 20% increase in customer satisfaction scores[99]. Operational Developments - The group launched its Hotel Comfact duty-free store and online platform in January 2019, leveraging accumulated customer resources and procurement advantages[26]. - The company has designed, developed, and launched over 40 new local tour routes in Osaka, Tokyo, and other regions of Japan[73]. - The group continues to develop and manage local tour products in Japan, targeting travelers who are not part of their tour groups or free travel products[41]. - The company has engaged over 4 third-party bus operators for its travel bus services in Japan[73]. Financial Position and Liquidity - The net asset value of the group as of December 31, 2019, was approximately RMB 252.7 million, an increase of 104.5% compared to the previous year[25]. - The company maintained cash and bank balances of approximately RMB 56.1 million as of December 31, 2019, significantly up from RMB 11.3 million in 2018, indicating improved liquidity[57]. - The current ratio as of December 31, 2019, was 3.4, compared to 0.7 in 2018, reflecting a stronger short-term financial position[57]. - The capital-to-debt ratio as of December 31, 2019, was approximately 23.6%, a significant decrease from 92.0% in 2018, indicating reduced leverage[60]. Corporate Governance - The board of directors includes experienced professionals from various sectors, ensuring robust governance and strategic oversight[91]. - The company has adopted a board diversity policy, emphasizing the importance of diversity in maintaining competitive advantage[125]. - The board is collectively responsible for overseeing the company's affairs and ensuring effective internal controls and risk management systems[113]. - The company has established a disclosure policy to ensure proper handling of confidential information and compliance with market regulations[144]. - The board has engaged an external professional firm to conduct an annual review of the risk management and internal control systems for the year ending December 31, 2019[144]. Environmental and Social Responsibility - The company is committed to corporate social responsibility and aims to integrate it into its business strategy[164]. - The total greenhouse gas emissions increased by 6% from 5,059 tons of CO2 equivalent in 2018 to 5,347 tons in 2019[171]. - The company has implemented measures to encourage employees to use public transport and reduce unnecessary travel[174]. - The company adheres to all labor laws and strictly prohibits forced labor and child labor[188]. - The company has implemented a comprehensive mechanism for occupational health and safety, ensuring compliance with safety standards[192]. Employee Development - The employee costs for the group were approximately RMB 203 million for the year ended December 31, 2019, compared to RMB 180 million in 2018[76]. - The total number of employees decreased by 11% to 202 in 2018[189]. - Training hours for employees decreased by 2% from 1,802 hours in 2018 to 1,772 hours in 2019[196]. - The company promotes a non-discriminatory and diverse workplace, ensuring equal opportunities for all employees[194].

Financial Performance - Total revenue for the six months ended June 30, 2019, was RMB 117.9 million, representing a 34.0% increase from RMB 88.0 million in the same period of 2018[30]. - Gross profit for the same period was RMB 36.9 million, a significant increase of 112.6% compared to RMB 17.4 million in 2018[30]. - The net profit attributable to the owners of the parent company was RMB 11.2 million, reversing from a loss of RMB 5.9 million in the previous year[30][31]. - The adjusted profit for the period increased by RMB 13.4 million or 239.3% compared to the same period last year, driven by revenue and gross profit growth[32]. - The company's revenue for the period was approximately RMB 117.9 million, an increase of 33.2% compared to RMB 88.0 million for the six months ended June 30, 2018[48]. - The gross profit for the period was approximately RMB 37.0 million, with a gross margin of 31.4%, compared to RMB 17.4 million and a gross margin of 19.8% for the same period last year[50]. - The company reported a profit before tax of RMB 17,187 thousand, a turnaround from a loss of RMB 5,686 thousand in the previous year[75]. - The company's net profit attributable to owners for the period was approximately RMB 11.2 million, an increase of approximately RMB 17.1 million compared to a net loss of RMB 5.9 million for the six months ended June 30, 2018, driven by increased sales and gross profit from group tours and local travel[56]. - The group’s profit before tax for the six months ended June 30, 2019, was RMB 11,179,000, compared to a loss of RMB 5,907,000 for the same period in 2018, representing a significant turnaround[129]. - The basic earnings per share for the six months ended June 30, 2019, was RMB 1.48, compared to a loss per share of RMB 0.79 in 2018, marking a recovery in profitability[129]. Revenue Sources - Revenue from the sale of travel packages and local tours contributed 74.4% of total revenue, down from 83.1% in the previous year[35]. - The hotel business generated revenue of RMB 16.0 million, accounting for 13.6% of total revenue, with a gross profit margin of 51.3%[35]. - Net income from visa application services was RMB 6.6 million, representing 5.6% of total revenue[35]. - Sales from Japanese tour groups contributed 64.9% of total sales, while local tours contributed 20.0%, indicating a slight decrease in the share of Japanese tours from 65.7% in the previous period[39]. - Local tour sales surged from approximately RMB 1.5 million to about RMB 17.5 million, driven by an increase in the number of routes and growing popularity among Chinese tourists[41]. - Hotel business revenue increased by 185.7% to approximately RMB 16.0 million, contributing 13.6% to total revenue, up from 6.4% in the previous period[42]. - Net income from free travel products increased, with Japanese free travel products accounting for 62.0% of total net income, up from 60.6% in the previous period[44]. Expenses and Cost Management - Sales and distribution expenses decreased from approximately RMB 3.8 million to about RMB 2.9 million, a reduction of approximately RMB 0.9 million, primarily due to lower employee costs and marketing expenses[51]. - Administrative expenses decreased from approximately RMB 18.0 million to about RMB 15.5 million, a reduction of approximately RMB 2.5 million, mainly due to a decrease in listing expenses offset by an increase in administrative employee costs, depreciation, and general office expenses[54]. - The cost of services provided increased to RMB 77,390,000 in 2019 from RMB 69,041,000 in 2018, reflecting a rise of approximately 18.5%[122]. - The cost of goods sold increased to RMB 3,575,000 in 2019 from RMB 1,618,000 in 2018, reflecting a rise of approximately 120.8%[122]. Assets and Liabilities - The group’s current assets and current liabilities as of June 30, 2019, were RMB 189.3 million and RMB 102.7 million, respectively, resulting in a current ratio of 1.8, up from 0.7 as of December 31, 2018[58]. - The debt-to-equity ratio as of June 30, 2019, was 44.5%, a significant decrease from 92.0% as of December 31, 2018[60]. - Total assets as of June 30, 2019, amounted to RMB 305,282 thousand, up from RMB 184,718 thousand at the end of 2018[77]. - Current assets increased to RMB 189,319 thousand from RMB 68,406 thousand, reflecting a growth of 176.5%[77]. - The company’s total liabilities were RMB 102,741 thousand, compared to RMB 93,290 thousand in 2018, showing an increase of 10.5%[77]. - Non-current assets totaled RMB 218,704 thousand, slightly up from RMB 209,602 thousand in the previous year[77]. - The company reported a total equity of RMB 237,190 thousand, significantly increasing from RMB 123,556 thousand in 2018, representing a growth of 92.0%[77]. Cash Flow - For the six months ended June 30, 2019, the net cash flow from operating activities was RMB 28,239 thousand, a significant improvement from a net outflow of RMB 7,799 thousand in the same period of 2018[82]. - The net cash flow from investing activities was RMB 73 thousand, compared to a net outflow of RMB 43,176 thousand in the previous year, indicating a recovery in investment activities[82]. - The net cash flow from financing activities was RMB 11,464 thousand, down from RMB 35,594 thousand in the same period of 2018, reflecting a decrease in financing activities[82]. - As of June 30, 2019, cash and cash equivalents increased to RMB 50,751 thousand from RMB 14,187 thousand at the end of the previous year, showing a strong liquidity position[82]. Corporate Governance and Compliance - The company did not declare an interim dividend for the six months ended June 30, 2019, consistent with the previous period[68]. - The company has maintained compliance with the public float requirements as per listing rules[166]. - The audit committee consists of three independent non-executive directors, ensuring robust financial oversight[162]. - The company has adhered to the corporate governance code throughout the reporting period[163]. Market and Operational Strategy - The company focused on expanding its outbound travel products and services, particularly in Japan, during the reporting period[34]. - The company plans to continue enhancing its product offerings and expanding its market presence in the travel sector[34]. - The company expects to continue leveraging its operational strengths to expand its market presence and enhance service offerings[109]. - The group primarily engages in outbound tourism services through its operating entities, which are subject to contract arrangements due to foreign ownership restrictions in the outbound tourism sector in China[168]. Risks and Challenges - The group faces significant risks from currency fluctuations, particularly the yen, which can affect its financial performance and operational results[169]. - A substantial portion of the group's revenue is derived from Chinese customers, making it vulnerable to economic downturns in China[169]. - The group is exposed to intensified competition from travel agencies, hotels, airlines, online travel platforms, and alternative booking channels[169]. - Natural disasters, terrorism, wars, and outbreaks of infectious diseases could adversely affect consumer demand for travel, impacting the group's business performance[169]. - Future changes in visa application policies by the Chinese and Japanese governments may negatively impact the group's business and revenue[169]. - The group acknowledges the potential for significant deviations between forward-looking statements and actual performance due to known and unknown risks[172].