Financial Performance - Revenue for the six months ended June 30, 2022, was HK$29,039,000, representing a 64.8% increase from HK$17,626,000 in 2021[13] - Gross loss improved to HK$6,786,000 from HK$19,077,000, a 64.4% reduction[13] - Loss attributable to owners of the Company decreased to HK$56,771,000 from HK$69,078,000, a 17.8% improvement[13] - Basic and diluted loss per share improved to HK(11.30) from HK(13.75) year-on-year[13] - The Group recorded total revenue of approximately HK$29.0 million for the six months ended June 30, 2022, representing an increase of 64.8% compared to HK$17.6 million for the same period in 2021[17] - The gross loss for the Group was approximately HK$6.8 million, a decrease of 64.4% from HK$19.1 million in the same period last year[17] - Loss attributable to owners of the Company was approximately HK$56.8 million, down from HK$69.1 million for the six months ended June 30, 2021[17] - The Group's total comprehensive income for the period was a loss of HK$88,408,000, compared to a loss of HK$89,863,000 in the previous year[165] - The total loss for the period was approximately HK$57,098,000, a decrease from the loss of HK$69,468,000 in the prior year[165] - The Group's exchange differences on translation of foreign operations resulted in a loss of HK$30,728,000 for the period[165] Operational Highlights - The Group's first package tour to Japan successfully departed on June 22, 2022, marking a significant milestone after over two years of outbound travel restrictions from Hong Kong[21] - Following the government's distribution of consumption vouchers in April 2022, the Group's local day tours and Staycation accommodation business became active again[21] - The Japanese government gradually opened up entry for tourists in May 2022, further expanding in June 2022, positively impacting the Group's hotel business with a continuous rise in occupancy rates[21] - The Group's newly developed merchandise sales business, "EGL Market," continued to grow, benefiting from increased online shopping during the pandemic[19] - The Group introduced mobile service vehicles to facilitate shopping for customers in various districts, enhancing public awareness of "EGL Market"[19] - The Group's hotel business revenue increased, contributing to the overall reduction in losses[33] - Package tours revenue decreased by 32.4% to approximately HK$2.3 million, contributing 7.8% to total revenue[38] - Revenue from FIT Products and ancillary travel related products increased by 22.1% to approximately HK$2.4 million, contributing 8.4% to total revenue[41] - Sale of merchandise revenue increased by 61.5% to approximately HK$10.8 million, contributing 37.3% to total revenue[41] - Hotel operation revenue increased by 142.4% to approximately HK$13.5 million, contributing 46.5% to total revenue[43] Financial Position and Ratios - Gearing ratio increased to 85.2% from 76.6%[13] - Net debts over equity surged to 1,637.4% compared to 493.0% in the previous period[13] - Current ratio increased to 1.2 times as of June 30, 2022, compared to 0.6 times as of December 31, 2021[54] - The total equity attributable to owners of the Company decreased to approximately HK$35.5 million as of June 30, 2022, from HK$123.9 million as of December 31, 2021[70] - Cash at banks and on hand as of June 30, 2022, was approximately HK$125.2 million, a decrease from HK$130.1 million as of December 31, 2021[70] - The company's net assets decreased from HK$122,294,000 to HK$33,886,000, a decline of approximately 72.2%[169] Cost Management - The Group implemented various cost control initiatives, including staff unpaid leave and salary reductions, to improve operating cash flows[30] - Selling expenses decreased by 18.6% to approximately HK$13.5 million in 2022 from HK$16.6 million in 2021[52] - Administrative expenses decreased by 9.2% to approximately HK$45.8 million in 2022 from HK$50.4 million in 2021[52] - The Group has continued to implement austerity measures to maintain operating cash outflows at a low level, including workforce restructuring and salary reductions[183] Future Outlook - The management expressed cautious optimism regarding future financial performance due to the relaxation of quarantine requirements by the Hong Kong Government[33] - The Group plans to explore additional sources of income and implement cost control measures, including workforce restructuring and seeking rent concessions from landlords[95] - The management is confident in Hong Kong's economic recovery and aims to strengthen its position in the market[95] - The expected mild revival of the travel business is based on the latest developments of the pandemic and travel restrictions, particularly in Japan and Hong Kong[183] Shareholder Information - As of June 30, 2022, Evergloss Management holds 301,642,000 shares, representing approximately 60.03% of the issued share capital of the company[135] - Alpadis Trust (HK) Limited, as trustee, holds 340,018,000 shares, accounting for about 67.67% of the company's issued share capital[135] - The total number of shares held by substantial shareholders includes 19,352,000 shares held by Likang and 19,024,000 shares held by Yohki Ryokoh Limited[137] - The total number of shares available for issue under the Share Option Scheme was 50,000,000 shares, representing approximately 9.95% of the issued share capital of the Company as of the interim report date[148] - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2022, compared to HK$Nil for the same period in 2021[148] Government Support and Compliance - The group received approximately HK$2,576,000 under the Hong Kong Government's "Employment Support Scheme" during the six months ended June 30, 2022, opting to reduce related salary expenses instead of presenting the grant separately[192] - Government grants totaling approximately HK$5,240,000 were included in "Other income, gains and losses, net" to support the group's operations[192] - The company has undertaken to maintain specific performance obligations as part of the banking agreements[150]

Financial Performance - The Group recorded total revenue of approximately HK$44.6 million for the year ended December 31, 2021, a significant decrease of 82.2% compared to HK$249.8 million in 2020[25]. - The gross loss for the year amounted to approximately HK$29.2 million, representing an increase of 128.0% from HK$12.8 million in 2020[25]. - Loss attributable to owners of the Company was approximately HK$155.6 million, compared to HK$108.8 million in 2020[25]. - Basic loss per share for 2021 was HK30.98 cents, up from HK21.65 cents in 2020[54]. - The company reported a net loss of HK$156,425,000 for the year, worsening from a loss of HK$109,674,000 in 2020[108]. - The net profit margin for the Group was -349.1% in 2021, worsening from -43.5% in 2020[69]. - The interest coverage ratio improved to -12.4 times from -20.4 times, indicating a decrease in negative interest coverage due to a smaller increase in operating loss before finance costs[85]. - The gearing ratio based on total borrowings over total assets rose to 76.6% in 2021 from 64.2% in 2020, an increase of 12.4 percentage points[92]. - The return on total assets was -17.2% in 2021 compared to -10.3% in 2020, indicating a worsening performance[94]. - The return on equity attributable to owners was -125.6% in 2021, worsening from -43.1% in 2020[94]. Revenue Breakdown - Revenue from package tours was HK$7.7 million with a gross profit margin of 20.0%[59]. - Revenue from FIT products and ancillary travel-related services was HK$5.2 million, achieving a gross profit margin of 64.7%[59]. - Hotel operations reported revenue of HK$14.1 million but incurred a gross loss of HK$38.1 million, reflecting a gross margin of -270.0%[59]. - Revenue from package tours amounted to approximately HK$7.7 million, a decrease of 96.4% compared to HK$216.2 million in 2020, contributing 17.3% to the Group's total revenue[63]. - Revenue from FIT products and ancillary travel-related services was approximately HK$5.2 million, down 68.7% from HK$16.7 million in 2020, contributing 11.7% to the Group's total revenue[63]. - The sale of merchandise business generated revenue of approximately HK$17.5 million, an increase of 136.0% from HK$7.4 million in 2020, contributing 39.3% to the Group's total revenue[65]. - Hotel operation revenue was approximately HK$14.1 million, representing a 50.0% increase from HK$9.4 million in 2020, contributing 31.6% to the Group's total revenue[65]. Operational Challenges - The travel business has had almost zero revenue since mid-March 2020 due to the ongoing impact of the COVID-19 pandemic[25]. - Limited contributions were made from hotels, local tours, and retail business during the year[25]. - The significant losses were inevitable given the circumstances affecting the travel industry[25]. - The financial performance reflects the challenges faced by the Group in the current market environment[25]. - The Group may face further negative results and liquidity constraints due to the ongoing impact of the COVID-19 pandemic[106]. Strategic Initiatives - The Company plans to provide further details on business performance in the "Management Discussion and Analysis" section of the report[25]. - The Company continues to monitor the situation and adapt its strategies accordingly[25]. - The Group introduced new local one-day tours and Staycation products, which received positive customer feedback, including tours to the East Dam of the High Island Reservoir and Tai O on Lantau Island[28]. - The online shopping platform "EGL Market" maintained a competitive edge by regularly assessing market changes and introducing new products, while also expanding physical stores to enhance customer interaction[28]. - The Group participated in the "19th Hong Kong Food Festival," promoting local tours and Staycation accommodations, which garnered positive attention and support from attendees[32]. - The Group leveraged the government's electronic consumption voucher initiative to expand business and enhance brand image through various electronic payment methods[37]. - The Group continues to implement cost control measures, including human resource restructuring and seeking rent concessions, to improve operating cash flows[45]. - The Group remains cautiously optimistic about the recovery of the tourism industry and is prepared to maximize potential once the pandemic situation improves[46]. Employee and Community Engagement - The Group is actively encouraging employees to receive COVID-19 vaccinations by providing transportation allowances and paid leave[35]. - The Group implemented energy-saving measures during the pandemic, such as reducing the number of light tubes in offices and recycling stationery, to lower costs and conserve natural resources[37]. - The Group participated in the "Hygiene Anti-epidemic Measures Certification Scheme" to ensure standardized health measures for employee and customer safety[37]. - The Group recognizes the importance of maintaining good relationships with employees, customers, and suppliers for sustainable development[152]. - The Group's employee remuneration packages are regularly reviewed and are determined based on market information and individual performance[104]. Financial Position - Total assets decreased to HK$905,115,000 from HK$1,053,511,000, a reduction of approximately 14.1%[113]. - Total liabilities slightly decreased to HK$782,821,000 from HK$801,878,000, reflecting a decline of about 2.5%[113]. - The company's total equity dropped to HK$122,294,000 from HK$251,633,000, a decrease of approximately 51.4%[113]. - Cash at banks and on hand amounted to approximately HK$130.1 million as of December 31, 2021, an increase from HK$98.8 million as of December 31, 2020[96]. - The Group had capital commitments of approximately HK$0.8 million as of December 31, 2021, down from HK$1.0 million as of December 31, 2020, for acquiring property, plant, and equipment[98]. Governance and Compliance - The Group's commitment to corporate governance aims to create greater value for stakeholders, including shareholders, employees, and the community[147]. - The Group's financial risks and capital risks are detailed in the consolidated financial statements notes[143]. - The Group has established procedures for handling customer feedback and complaints to ensure timely responses to customer opinions[152]. - The Group's management regularly reviews the performance of major suppliers and service providers to ensure effective monitoring and improvements[152]. Shareholder Information - The company has not granted, cancelled, lapsed, or exercised any share options during the year, maintaining the same status as in 2020[104]. - The company did not declare any dividends for the year 2021, consistent with 2020[131]. - The substantial shareholder Evergloss holds 374,130,000 shares, accounting for 74.46% of the issued share capital of the company[194]. - The interests of directors and chief executives in shares and debentures are recorded as required by the SFO[190].

Financial Performance - The Group recorded total revenue of approximately HK$17.6 million for the six months ended June 30, 2021, a significant decrease of 92.5% compared to HK$236.4 million for the same period in 2020[19]. - The gross loss for the period was approximately HK$19.1 million, representing a change of -219.6% from a gross profit of HK$16 million in the prior year[19]. - Loss attributable to owners of the Company was approximately HK$69.1 million, compared to a loss of HK$66.2 million in the same period last year, reflecting a 4.4% increase in loss[19]. - Basic and diluted loss per share was HK(13.75) cents, compared to HK(13.17) cents in the previous year[17]. - The Group's total comprehensive loss for the period was HK$89,863,000, compared to a total comprehensive loss of HK$66,347,000 in the previous year[170]. - The Group's gross profit margin for the six months ended June 30, 2021, was –108.2%, compared to 6.7% in 2020[59]. - The return on total assets was -7.4% for the period, compared to -6.9% for the six months ended June 30, 2020, indicating a decline due to significant losses incurred[82]. - The return on equity attributable to owners of the company was -33.4%, down from -23.3% for the same period in the previous year, reflecting a decrease in equity of approximately HK$46.0 million[82]. Revenue Breakdown - Revenue from package tours was approximately HK$3.3 million, a decrease of 98.4% from HK$213.2 million in the previous year, contributing 19.0% to the Group's total revenue[51]. - Revenue from FIT products and ancillary travel services was approximately HK$1.998 million, with a gross profit margin of 78.1%[48]. - Revenue from merchandise sales was approximately HK$6.71 million, with a gross profit margin of 23.2%[48]. - Hotel operations reported revenue of HK$5.57 million, resulting in a gross loss of HK$22.51 million, reflecting a gross profit margin of -404.1%[48]. - Revenue from FIT Products and ancillary travel related products decreased to approximately HK$2.0 million, representing a decrease of 84.6% compared to HK$13.0 million in the six months ended June 30, 2020[54]. - Revenue from merchandise sales, including the "EGL Market" online shopping platform, amounted to approximately HK$6.7 million, an increase of 209.8% compared to HK$2.2 million in the six months ended June 30, 2020[54]. - Hotel operation revenue decreased to approximately HK$5.6 million, a decline of 30.8% from HK$8.1 million in the six months ended June 30, 2020[56]. COVID-19 Impact - The ongoing impact of the COVID-19 pandemic has resulted in the Group's business being in a near-zero revenue state since mid-March 2020[19]. - The Group's financial performance is significantly affected by the ongoing COVID-19 pandemic, especially due to recent infection cases in Japan[185]. - The Group's travel and hotel operations were halted due to the COVID-19 pandemic, adversely impacting revenue and financial performance for the six months ended June 30, 2021[198][200]. - The COVID-19 pandemic continues to have a profound negative impact on the Group's financial performance, particularly in Japan[189]. - The exact impact of the COVID-19 pandemic on the Group's performance in the second half of 2021 and beyond remains unpredictable[98]. Cost Control and Management Strategies - The Group continues to implement cost control measures, including human resource restructuring and seeking rent concessions, to improve operating cash flows[42]. - The management of the Group is implementing various cost control measures to improve operating cash flows, including workforce restructuring and salary reductions[191]. - The Company continues to monitor market conditions and may adjust its strategies accordingly in response to the ongoing challenges[19]. - The Group is actively encouraging employees to get vaccinated against COVID-19, offering cash allowances and paid leaves as incentives[34]. - The Group intends to finance future capital expenditures through internal resources, indicating a focus on self-sustainability[89]. Financial Position and Ratios - The gearing ratio increased to 68.2% from 64.2% year-on-year, indicating a rise in total borrowings over total assets[17]. - Net debts over equity ratio rose to 284.0% from 252.3% in the previous year, highlighting increased financial leverage[17]. - The current ratio improved to 1.6 times as of June 30, 2021, compared to 0.7 times as of December 31, 2020[59]. - Total borrowings over total assets increased to 68.2% as of June 30, 2021, up from 64.2% as of December 31, 2020[59]. - The total assets decreased by HK$119.2 million to HK$934.3 million as of June 30, 2021, compared to HK$1,053.5 million as of December 31, 2020[79]. - The total equity attributable to owners of the company decreased to HK$206,632,000 as of June 30, 2021, down from HK$252,583,000 at the end of 2020, reflecting a decrease of about 18.2%[176]. Employee and Workforce Management - As of June 30, 2021, the Group had a total workforce of 293 employees, down from 482 as of December 31, 2020, with 32 full-time escort guides[94]. - Due to the adverse impact of the COVID-19 pandemic, the Group implemented no-pay leaves and salary reductions for employees[95]. - The Group provides a series of employee training programs to accelerate professional growth and identify talents[95]. Shareholder Information - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021, consistent with the interim dividend for 2020, which was nil[143]. - No share options were granted, cancelled, lapsed, or exercised during the reporting period[95]. - The total number of shares available for issue under the Share Option Scheme was 50,000,000 shares, accounting for approximately 9.95% of the issued share capital of the Company as of the interim report date[143].

Financial Performance - The Group recorded total revenue of approximately HK$249.8 million for the year ended December 31, 2020, representing a decrease of 85.5% compared to HK$1,728.3 million in 2019[31]. - The gross profit margin for the year was approximately 12.1%, down from 18.1% in 2019[31]. - Loss attributable to owners of the Company was approximately HK$108.8 million, compared to a profit of approximately HK$14.0 million in 2019[31]. - Basic loss per share for 2020 was HK21.65 cents, a decline from basic earnings per share of HK2.79 cents in 2019[57]. - Total package tours revenue was HK$216.2 million in 2020, a significant drop from HK$1,467.7 million in 2019, with a gross profit margin of 6.3%[61]. - FIT Products and ancillary travel-related products generated revenue of HK$24.1 million in 2020, with a gross profit margin of 49.3%[61]. - Hotel operations revenue was HK$9.4 million in 2020, with a gross profit margin of 51.8%[61]. - Total revenue decreased to approximately HK$137.0 million in 2020, down 84.8% from HK$900.7 million in 2019[63]. - Revenue from non-Japan-bound package tours decreased to approximately HK$79.2 million, a decline of 86.0% from HK$567.0 million in 2019[64]. - The hotel room occupancy rate fell to 8.0% in 2020 from 69.3% in 2019[64]. - The Group's income tax credit for the year amounted to approximately HK$39.9 million, a significant increase from HK$2.9 million in 2019, driven by a decrease in income tax expense and an increase in deferred tax credit[80]. - The interest coverage ratio fell to –20.4 times in 2020 from 2.7 times in 2019, reflecting a shift from profit to loss due to decreased revenue and gross profit[80]. - Total assets decreased to HK$1,053.5 million in 2020 from HK$1,091.9 million in 2019, reflecting a decline of HK$38.4 million[84]. - Shareholders' equity decreased to HK$252.6 million in 2020 from HK$350.6 million in 2019, a reduction of HK$97.9 million[88]. - The gearing ratio rose to 64.2% in 2020, up from 34.1% in 2019, indicating a higher level of financial leverage[85]. - The return on total assets and return on equity attributable to owners of the company were –10.3% and –43.1% respectively, a significant decrease from 1.3% and 4.0% in 2019, primarily due to a loss in 2020[93]. - The current ratio was 0.7 times, down from 1.1 times in 2019, mainly due to increased loans from a related company and decreased cash and cash equivalents[80]. Impact of COVID-19 - The COVID-19 pandemic severely impacted the tourism industry, leading to almost no revenue for several months due to lockdown policies[30]. - The significant financial loss was inevitable due to the ongoing pandemic and its effects on operations[30]. - The Group implemented several cost-saving measures and benefited from relief support from the Anti-epidemic Fund[30]. - The Group implemented multiple cost-saving measures, including salary reductions for directors and no-pay leaves for employees, to maintain cash resources during the COVID-19 pandemic[35]. - Future outlook remains uncertain due to the ongoing impact of COVID-19 on the tourism sector[30]. - The Group remains optimistic about recovery post-pandemic, aiming to resume operations and provide pleasant trips for customers[47]. Community Engagement and Corporate Social Responsibility - The Group distributed 30,000 masks to the public in February 2020, demonstrating its commitment to community health during the pandemic[41]. - The Group's "EGL Caring Society Team" was established to organize charitable events and promote community development, reflecting its corporate social responsibility[37]. - The Group received the "Partner Employer Award" for its efforts in caring for the underprivileged and promoting social harmony[37]. - The Group's charitable donations during the year amounted to approximately HK$20,000, a decrease from HK$154,000 in 2019[190]. Business Strategy and Future Outlook - The company is focused on recovery strategies as the pandemic situation evolves[30]. - The Group launched the "EGL Market" online shopping platform, offering over 500 global souvenir products, including snacks and household items, to adapt to the online shopping trend[35]. - The Group aims to develop a sustainable "travel + living" ecosystem through its new online platform, enhancing customer experience and business growth[35]. - The management discussion and analysis section provides further details on business performance[31]. - The management anticipates a positive outlook for the upcoming year, supported by strategic initiatives and market trends[148]. Operational Changes and Cost Management - The Group's energy-saving measures during the pandemic included reducing the number of light tubes in offices and reusing stationery, contributing to cost savings and resource conservation[41]. - Selling expenses decreased to approximately HK$38.6 million in 2020, down 53.8% from HK$83.7 million in 2019[75]. - Administrative expenses decreased to approximately HK$147.7 million in 2020, down 31.8% from HK$216.7 million in 2019, primarily due to reduced business volume and cost-saving measures[78]. - The Group implemented various cost-saving measures and received subsidies from the Hong Kong Government to mitigate the impact of the pandemic[54]. Market and Competitive Landscape - The Group's revenue is primarily derived from travel-related products and services in Hong Kong and Macau, making it vulnerable to economic downturns in these regions[151]. - The Group's hotel operations in Osaka and Okinawa face competition from existing and future accommodation options, impacting room rates and service quality[156]. - Any adverse changes in Japan's economic, social, or political conditions could negatively affect customer demand for the Group's travel-related products and services[155]. - The Group's operations may be significantly affected by natural disasters, terrorism, or outbreaks of contagious diseases, which can impact customer sentiment and demand[151]. Compliance and Governance - The Group's compliance with relevant laws and regulations has been affirmed by the Board, ensuring adherence to significant legal requirements[160]. - The "Environmental, Social and Governance Report" will be published within three months following the annual report, reflecting the Group's commitment to transparency[160]. - The Company has in force indemnity provisions for the benefit of Directors, including former Directors, as permitted under relevant statutes[197].

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$236,417,000, a decrease of 72.1% compared to HK$847,840,000 in the same period of 2019[12]. - Gross profit for the same period was HK$34,771,000, down 77.9% from HK$157,345,000 year-on-year[12]. - The loss attributable to owners of the Company was HK$66,169,000, compared to a profit of HK$6,898,000 in the previous year, representing a change of -1,059.2%[12]. - Basic and diluted loss per share was HK(13.17) cents, compared to earnings of HK1.37 cents per share in the prior year[12]. - The net profit margin was -31.9%, compared to 1.1% in the same period last year[12]. - Total revenue for the first half of 2020 was approximately HK$236.4 million, a decrease of 72.1% from HK$847.8 million in the same period of 2019[44]. - The overall gross profit for the first half of 2020 was approximately HK$34.8 million, a decrease of 78.0% from HK$157.3 million in the same period of 2019[44]. - For the six months ended June 30, 2020, the Group recorded a loss of approximately HK$66,467,000 compared to a profit of HK$7,206,000 in the same period of 2019[157]. Cost Management - The Group implemented multiple cost-saving measures, including closing the Tuen Mun branch and terminating the lease of the Yuen Long branch[20]. - Executive Directors voluntarily reduced their salaries, and no-pay leaves were arranged for employees to sustain financial resources[20]. - Selling expenses decreased by 32.9% to approximately HK$28.3 million from HK$42.2 million in the same period last year[56]. - Administrative expenses reduced by 23.4% to approximately HK$83.2 million from HK$108.5 million year-on-year[56]. - The Group has implemented various cost control measures to improve operating cash flows, including voluntary salary reductions and closures of under-performing branches[181]. Market and Strategic Outlook - The Company is focusing on new strategies for market expansion and product development to recover from the current financial downturn[12]. - Future outlook remains cautious due to ongoing market uncertainties and the impact of external factors on business operations[12]. - The Group developed an online shopping platform to generate new income streams amid the stagnation of travel and hotel operations[41]. - The Group's management expressed confidence in recovering and resuming operations once the pandemic abates[35]. Impact of COVID-19 - The outbreak of COVID-19 led to the cancellation and/or postponement of travel-related products and services, particularly to Japan since 9 March 2020[177]. - The Group's travel and hotel operations were halted due to the COVID-19 pandemic, adversely impacting revenue and financial results for the six months ended 30 June 2020[188]. - The pandemic has led to a significant adverse impact on the Group's overall financial performance for the first half of 2020[188]. - The Group applied for various government support programs, receiving approximately HK$12,025,000 under the "Employment Support Scheme" to retain employees during the pandemic[193]. Financial Position and Ratios - The gearing ratio increased to 46.4% from 34.1% as of December 31, 2019[12]. - Current liabilities exceeded current assets by approximately HK$33,191,000 as of June 30, 2020, raising concerns about the Group's ability to continue as a going concern[153]. - The interest coverage ratio dropped to –40.9 times from 5.8 times[53]. - The current ratio decreased to 0.9 times from 1.1 times[53]. - The company's net assets decreased to HK$286,674,000 from HK$353,021,000, indicating a decline of approximately 18.7%[162]. Shareholder Information - As of June 30, 2020, Evergloss held 374,330,000 shares of the Company, representing approximately 74.50% of the issued share capital[114][116]. - The Company has established discretionary trusts for family members, indicating a structured approach to shareholding and management[118]. - There were no share options granted, exercised, cancelled, or lapsed during the six months ended June 30, 2020, under the Share Option Scheme[131]. Government Support and Grants - The Group received rent concessions from lessors amounting to approximately HK$1,280,000, which resulted in a reduction of total lease liabilities[193]. - Approximately HK$3,892,000 of government grants were recognized in profit or loss for June 2020, with conditions to use the subsidies for employee wages[193]. - The Group is in the process of applying for employment adjustment subsidies from the Japanese government, with applications still ongoing as of the report date[195].

Financial Performance - Total revenue for the year was approximately HK$1,728.3 million, a decrease of 2.7% compared to HK$1,776.6 million in 2018[21] - Profit attributable to owners of the Company was approximately HK$14.0 million, representing a decrease of 59.8% compared to HK$34.8 million in 2018[21] - Gross profit for the year was HK$312,493, down 0.3% from HK$315,289 in 2018, resulting in a gross profit margin of 18.1%[117] - The Group's revenue decreased by 2.7% from approximately HK$1,776.6 million in 2018 to approximately HK$1,728.3 million in 2019[50] - Basic earnings per share for profit attributable to owners of the Company for 2019 was HK2.79 cents, down from HK6.93 cents in 2018[52] - The interest coverage ratio decreased to 4.6 times from 9.4 times in 2018, indicating increased financial pressure[70] - Return on equity attributable to owners of the Company fell to 4.0% from 9.8% in 2018, reflecting reduced profitability[70] - The gearing ratio increased to 34.1% as of December 31, 2019, from 29.6% as of December 31, 2018, due to further bank borrowings and additions of property, plant, and equipment[88] - The company did not recommend a final dividend for 2019, contrasting with a total dividend of HK$5.0 cents per share in 2018[120] - The return on equity for 2019 was 4.0%, a decline from 9.8% in 2018, indicating lower returns for shareholders[117] Business Operations - Revenue and gross profit from travel-related business recorded decreases, while hotel business saw increases in both revenue and gross profit[21] - The hotel business recorded a loss during the year due to increased operating expenses, primarily from higher depreciation charges[21] - The Group launched a new online reservation platform "Guru & Guru" to provide diverse travel products and experiences, enhancing customer engagement and flexibility in travel planning[26] - The hotel construction project in Okinawa commenced in March 2019, with expectations for completion and operation by Q4 2020, aiming to leverage synergies in the Group's travel-related business[32] - The Group's travel-related business has reached its 33rd year, emphasizing a commitment to customer satisfaction and innovative travel experiences[26] - The Group's revenue is primarily derived from the sale of travel-related products and services in Hong Kong and Macau, making it vulnerable to economic downturns in these regions[149] - The Group's operations were significantly impacted by the COVID-19 pandemic, leading to the cancellation and suspension of various travel products[37] - The Group's subsidiary in China temporarily suspended services, but the estimated impact on the Group was considered relatively low[110] Challenges and Market Conditions - The company faced challenges due to Sino-US trade frictions and a deteriorating economic environment in Hong Kong[21] - The overall market sentiment was volatile, impacting the tourism sector significantly[21] - The overall economic conditions in Hong Kong negatively impacted both Japan and non-Japan tour performances, leading to a decrease in customer numbers and revenue[59][62] - The outbreak of COVID-19 in early 2020 has severely impacted the tourism industry, leading to the cancellation and suspension of various travel products[110] - The Group's business operations may be significantly affected by natural disasters, terrorism, or outbreaks of contagious diseases, which can adversely impact customer sentiment and demand[147] Corporate Social Responsibility and Sustainability - The Group's commitment to corporate social responsibility includes organizing charitable events and promoting community development through the "EGL Caring Society Team"[28] - The Group implemented energy-saving measures in its offices and travel agency services to reduce energy consumption and environmental impact[31] - The Group's commitment to environmental sustainability includes energy-saving practices and compliance with relevant laws and regulations[155] - The Group has implemented internal recycling programs for consumables to minimize environmental impact and has upgraded electricity systems for energy savings[155] Employee and Management - The Group's focus on employee well-being included various activities such as stretch workshops and financial management seminars to enhance personal and professional development[28] - The Group is committed to providing a safe and fair working environment, promoting employee diversity, and offering competitive salaries and career development opportunities[158] - The total number of employees as of December 31, 2019, was 625, a decrease from 635 in the previous year[105] - The Group's remuneration policy is regularly reviewed, with no significant changes in 2019 regarding remuneration policies, bonuses, or training schemes[106] - The Group's management emphasizes ongoing training and development resources for employees to improve performance and self-fulfillment[160] Future Outlook and Strategy - The company plans to focus on market expansion and new product development as part of its future strategy[141] - The management discussion highlighted the importance of cash flow and financial condition in determining future dividends and operational strategies[140] - The Group continues to monitor travel restrictions and quarantine measures imposed by various countries in response to COVID-19[110] Customer Relations - Maintaining strong relationships with customers and suppliers is crucial for the Group's ongoing development, with procedures in place to handle customer feedback and complaints[159] - The Group enhances customer relationships through continuous interaction to understand changing market demands[161]

Financial Performance - Total revenue for the six months ended June 30, 2019, was approximately HK$847.8 million, a decrease of 3.4% compared to HK$877.5 million in the same period of 2018[20]. - Gross profit for the same period was HK$157.3 million, reflecting a slight increase of 1.5% from HK$155.0 million in 2018[14]. - Profit attributable to owners of the Company was approximately HK$6.9 million, representing a significant decrease of 62.3% from HK$18.3 million in the prior year[20]. - The gross profit margin increased to 18.6% from 17.7% in the same period last year[20]. - The operating profit margin decreased to 1.1% from 2.2% in the same period last year[14]. - The return on equity attributable to owners of the Company was 2.0%, down from 5.3% in the previous year[14]. - Basic earnings per share for the first half of 2019 were HK$1.37 cents, down from HK$3.64 cents in the same period of 2018[43]. - The Group's revenue decreased by 3.4% from approximately HK$877.5 million in the first half of 2018 to approximately HK$847.8 million in the first half of 2019[42]. - Profit for the period decreased to HK$7,206,000, down 60.8% from HK$18,371,000 in the previous year[184]. - Total comprehensive income for the period was HK$8,863,000, a decline of 53.2% compared to HK$18,943,000 in 2018[184]. Hotel Operations - The hotel business recorded a loss during the period due to increased depreciation and operating costs associated with the new hot spring bath facility in Osaka[20]. - Revenue from hotel operations decreased by 2.1% to approximately HK$34.6 million for the six months ended June 30, 2019, compared to HK$35.3 million for the same period in 2018[60]. - Gross profit from hotel operations decreased by 3.4% to approximately HK$25.6 million, with a gross profit margin decline of 1.0 percentage point to 73.9%[60]. - The Group's hotel development project in Okinawa commenced in March 2019, with expectations for completion and operation by the fourth quarter of 2020, which will boost the hotel business and create synergies in travel-related services[35]. - The Group's hotel business achieved a significant milestone with the grand opening of the hot spring bath building adjacent to Osaka Hinode Hotel in April, enhancing the accommodation experience for guests[25]. Marketing and Customer Engagement - Competitive marketing strategies were adopted to maintain growth in gross profit margin despite a slowdown in travel-related business due to external factors[20]. - The Group celebrated its 33rd anniversary by hosting the "EGL Happy 33 Travel Carnival," which featured participation from representatives of 14 Japanese prefectures and over 30 business partners, with 18 travel seminars held during the event[25]. - An online video titled "EGL x Genki Hokkaido, Latest Genki Report on Hokkaido" was released, aimed at restoring confidence in Hokkaido tourism, garnering over 400,000 views on social media[25]. - The Group aims to provide unique travel experiences and bring more happiness to customers as it continues to grow and develop its business[36]. Corporate Governance and Social Responsibility - The Company does not recommend the payment of an interim dividend for the six months ended June 30, 2019, compared to an interim dividend of HK$5,024,500 in 2018[21]. - The Group is committed to corporate social responsibility, engaging in community development and promoting a good human resources management culture through initiatives like the "Good Employer Charter"[29]. - Various staff activities were organized, including health workshops and creative workshops, aimed at enhancing employee well-being and fostering creativity[29]. - The Group advocates for a "Green Office" concept, implementing energy-saving measures to reduce energy consumption and enhance environmental awareness among employees and customers[34]. Financial Position and Ratios - The gearing ratio as of June 30, 2019, was 29.5%, slightly down from 29.6% at the end of 2018[14]. - Interest coverage ratio decreased from 9.6 times in 2018 to 5.8 times in 2019, attributed to higher administrative expenses and increased finance costs on bank borrowings[74]. - The current ratio decreased to 1.0 times as of June 30, 2019, from 1.3 times as of December 31, 2018[62]. - Return on total assets for the six months ended June 30, 2019, was 0.6%, down from 1.9% for the same period in 2018, while return on equity attributable to owners decreased from 5.3% to 2.0%[85]. - The total equity attributable to owners of the Company as of June 30, 2019, was approximately HK$343.5 million, a decrease from HK$355.0 million as of December 31, 2018[91]. Investments and Future Plans - The Group is constructing a new hotel in Okinawa, with construction work commenced in March 2019 and expected completion in the fourth quarter of 2020[112]. - The company is enhancing its sales channels through the refurbishment of existing branches and the development of a comprehensive online web portal, with investments of approximately $9.2 million and $17.4 million respectively[114]. - The company plans to strengthen its operational infrastructure by implementing an enterprise resource planning system, with an estimated investment of $8.1 million, $11.5 million, and $13.9 million for various improvements[114]. - Development of overseas wedding tours is part of the company's strategy, with an investment of $5.7 million planned[114]. Shareholder Information - As of June 30, 2019, Evergloss holds a total of 375,000,000 shares, representing approximately 74.63% of the issued share capital[140]. - The Share Option Scheme adopted on November 13, 2014, is valid for 10 years and aims to provide incentives to eligible participants[146]. - No share options were granted, exercised, cancelled, or lapsed during the six months ended June 30, 2019[156]. - The total number of shares available for issue under the Share Option Scheme was 50,000,000 shares, representing approximately 9.95% of the issued share capital of the Company[156].

Financial Performance - The Group recorded total revenue of approximately HK$1,776.6 million for the year ended December 31, 2018, representing an increase of 9.4% compared to HK$1,624.6 million in 2017[20]. - Gross profit margin slightly decreased from 18.0% in 2017 to 17.7% in 2018[20]. - Profit attributable to owners of the Company was approximately HK$34.8 million, a year-on-year increase of 21.9% from HK$28.6 million in 2017[20]. - Basic earnings per share for 2018 was HK6.93 cents, compared to HK5.68 cents in 2017[58]. - The Group's revenue increased by 9.4% to approximately HK$1,776.6 million in 2018, up from HK$1,624.6 million in 2017[56]. - Gross profit rose by 8.1% to approximately HK$315.3 million in 2018, compared to HK$291.8 million in 2017, while gross profit margin decreased from 18.0% to 17.7%[57]. - Profit attributable to owners of the Company increased by 21.9% to approximately HK$34.8 million in 2018, up from HK$28.6 million in 2017[58]. - Revenue from package tours contributed 84.2% to total revenue in 2018, down from 89.7% in 2017, with Japan-bound tours contributing 52.2%[62]. - The number of customers for Japan-bound tours decreased by 4.4% to 98,679 in 2018, with revenue declining by 4.6% to approximately HK$927.0 million[64]. - Non-Japan package tours saw a 17.3% revenue increase to approximately HK$569.9 million, with customer numbers rising from 72,367 in 2017 to 82,202 in 2018[66]. - Revenue from FIT Products and ancillary travel related services increased by 29.5% to approximately HK$212.5 million, contributing 12.0% to total revenue[70]. - The Group's first hotel in Osaka contributed approximately HK$67.2 million to total revenue in 2018, representing 3.8% of total revenue[71]. - Key financial ratios showed a decrease in gross profit margin to 17.7% and operating profit margin to 2.1%, while net profit margin improved to 2.0%[75]. - Selling expenses decreased by 12.0% to approximately HK$86.4 million in 2018, down from HK$98.2 million in 2017[78][80]. - Administrative expenses increased by 22.0% to approximately HK$204.7 million in 2018, compared to HK$167.8 million in 2017[82][85]. - Interest coverage ratio decreased from 103.2 times in 2017 to 9.4 times in 2018[90][95]. - Operating profit margin decreased from 2.4% in 2017 to 2.1% in 2018, while net profit margin increased from 1.8% in 2017 to 2.0% in 2018[92][97]. - Current ratio as of December 31, 2018, was 1.3 times, down from 1.6 times in 2017[93][98]. - Gearing ratio was 29.6% as of December 31, 2018, slightly down from 29.7% in 2017[100][104]. - Return on total assets increased to 3.8% in 2018 from 3.4% in 2017[102][105]. - The Group incurred finance costs of approximately HK$3.9 million in 2018, significantly up from HK$0.4 million in 2017[86]. - Income tax credit for the Group in 2018 was approximately HK$2.1 million, a significant change from income tax expenses of approximately HK$9.3 million in 2017[84][87]. - The Group's total equity attributable to owners amounted to approximately HK$355.0 million, an increase from HK$336.2 million as of December 31, 2017[111]. - The Group had cash at banks and on hand of approximately HK$230.0 million as of December 31, 2018, down from HK$263.4 million as of December 31, 2017[111]. - The Group withdrew bank borrowings of approximately JPY349.0 million (equivalent to approximately HK$24.7 million) for the construction of a hot spring bath building[106]. - The estimated total capital expenditure for the construction of a hot spring bath building was approximately JPY787.0 million (equivalent to approximately HK$55.8 million)[119]. - Total liabilities rose to HK$554,325,000 in 2018, compared to HK$506,699,000 in 2017[141]. - The Group's total guarantees amounted to approximately HK$17.9 million as of December 31, 2018, slightly down from HK$18.5 million as of December 31, 2017[113]. Business Operations - The Group has committed to providing diversified travel products and services, adapting to rapid market changes and consumer behavior shifts due to the emergence of budget airlines and online travel agencies[25]. - The Group has expanded its service offerings by providing online and WhatsApp enquiry services through its own branded mobile application[25]. - The Group's marketing strategy focused on competitive pricing to maintain tourist trade volume despite external challenges such as the Sino-US trade war and natural disasters[18]. - The Group aims to enhance offline services to ensure continuous support and enquiry services for customers[25]. - The Chairman's statement highlighted the impact of natural disasters on business operations, including earthquakes and typhoons affecting travel[18]. - The Group's performance showed slight improvement year-on-year despite facing various external uncertainties[18]. - Osaka Hinode Hotel achieved an Excellent rating of 4.2 out of 5.0 by Hotels.com and 8.8 out of 10.0 by Agoda.com within six months of opening[27][29]. - A travel agency was established in Japan with a local partner, commencing operations in Q3 2018, to cater to free independent travelers[30]. - The Group was awarded "Favourite Travel Agency – Tours" by TripAdvisor and four tourism awards from U-Magazine, including "My Favourite Japan Tours," which it has won for six consecutive years[31]. - The Group launched new tourism products, including luxury train services and Kenya package tours, enhancing customer travel experiences[33][35]. - Direct flights to Shikoku Tokushima and Komatsu were introduced to provide in-depth tours for customers[33][35]. - The Group became the sole travel agency in Hong Kong authorized by the Japanese government to distribute hotel accommodation grants, fully subsidizing Hokkaido tourism products[33][35]. - The Group partnered with Citibank to offer the Citi Pay with Points service, enhancing the online shopping experience for customers[34][36]. - The Group's hotel development project in Okinawa has a construction contract sum of JPY 3,750 million, expected to be completed in Q3 2020 and commence operations in Q4 2020[42]. - The hot spring bath building in Osaka, named "Hinode Deep-water Hot Spring," was completed in March 2019 and is expected to commence operations in early April 2019[42]. - The Group faced challenges in 2018, including natural disasters and unexpected economic conditions, yet received high recognition in tourism and hotel operations[53]. Corporate Social Responsibility and Sustainability - The Group has committed to corporate social responsibility by sponsoring fifteen students for a running event in Taiwan and promoting fair trade in football production[40]. - The Group emphasizes energy efficiency and has implemented energy-saving measures in its offices and travel agency services[41]. - The Group's diversified travel products aim to provide tailored and premium services to meet different customer needs[46]. - The Group participated in the "Good Employer Charter" to promote a decent human resources management culture[38]. - The Group's efforts in community development include organizing various staff activities to enhance team spirit and mutual support[38]. - The Group's commitment to sustainability includes reducing energy consumption and promoting responsible resource use among employees and customers[41]. - The Group recognizes the importance of maintaining strong relationships with employees, customers, and suppliers for sustainable development[184]. - The Group is committed to providing a safe and fair working environment, promoting diversity, and offering competitive salaries and career development opportunities[184]. - The Group has implemented internal recycling programs for consumables to minimize environmental impact and has upgraded electricity systems for energy savings[180]. Customer Relations and Feedback - The Group has established procedures to handle customer feedback and complaints to ensure timely responses to customer needs[185]. - The Group emphasizes maintaining strong relationships with customers through continuous interaction to adapt to changing market demands[189]. - The Group conducts regular performance reviews of major suppliers and service providers to ensure quality and improvement in service delivery[190].