Financial Performance - Revenue for the year ended December 31, 2023, reached HKD 1,366,020 thousand, a significant increase of 595.2% compared to HKD 196,479 thousand in 2022[4] - Gross profit for the same period was HKD 339,768 thousand, reflecting a 773.9% increase from HKD 38,881 thousand in the previous year[4] - The profit attributable to owners of the company was HKD 71,657 thousand, a turnaround from a loss of HKD 74,299 thousand in 2022, marking a 196.4% improvement[4] - Basic and diluted earnings per share improved to HKD 14.26 from a loss of HKD 14.79 in the previous year[6] - The gross profit margin increased to 24.9% from 19.8% in 2022, while the operating profit margin rose to 8.4% from -35.4%[4] - Net profit margin improved to 5.2% compared to -37.8% in the previous year[4] - Return on equity for the owners of the company was 151.1%, a significant recovery from -321.7% in 2022[4] - The company reported a total comprehensive income of HKD 59,848 thousand for the year, compared to a loss of HKD 101,825 thousand in 2022[23] Assets and Liabilities - Non-current assets decreased to HKD 416,503 thousand in 2023 from HKD 471,798 thousand in 2022, a decline of approximately 11.7%[25] - Current assets increased to HKD 320,794 thousand in 2023 from HKD 301,117 thousand in 2022, an increase of about 6.5%[25] - Total liabilities decreased to HKD 333,242 thousand in 2023 from HKD 440,901 thousand in 2022, a reduction of approximately 24.5%[25] - The net current liabilities improved significantly from HKD (139,784) thousand in 2022 to HKD (12,448) thousand in 2023[25] - The company's equity increased to HKD 45,145 thousand in 2023 from HKD 20,469 thousand in 2022, representing a growth of approximately 120.5%[26] - The total assets less current liabilities increased to HKD 524,999 thousand in 2023 from HKD 464,155 thousand in 2022, an increase of about 13.1%[25] - The company reported a total asset value of HKD 858,241 thousand in 2023, down from HKD 905,056 thousand in 2022, reflecting a decrease of approximately 5.2%[89] - The total liabilities decreased to HKD 813,096 thousand in 2023 from HKD 884,587 thousand in 2022, a reduction of about 8.0%[89] Cash Flow and Financing - The company reported a net cash received and receivable total of HKD 289,140 thousand in 2023, compared to HKD 66,343 thousand in 2022, indicating a significant increase in cash flow[97] - The company's financing costs were HKD (5,656) thousand in 2023, compared to HKD (17,002) thousand in 2022, reflecting a decrease in financing expenses[89] - The company’s financing costs totaled HKD 23,183,000 in 2023, compared to HKD 22,658,000 in 2022, showing a slight increase[102] - The company received a waiver from the bank for covenant requirements on outstanding loans amounting to approximately HKD 193,808,000, which were reclassified as non-current liabilities[134] - The company reported a tax expense of HKD 19,449 thousand across its segments[85] Market and Operational Strategy - The company has sufficient financial resources to support future operations, as indicated by the removal of major travel restrictions in Japan, which previously impacted business performance[11] - The company plans to continue expanding its market presence and developing new products and technologies to drive future growth[11] - The group anticipates that the new accounting standards will not have a significant impact on its financial data[51] - The group plans to issue its annual report in late April 2024, which will be available on its website[55] - The group has implemented strategic measures to enhance operational efficiency and focus on its strengths in the travel industry[64] - The group expects to continue benefiting from the recovery of the outbound travel market following the lifting of COVID-19 restrictions[63] - The group aims to explore new market opportunities and strategies to adapt to changing traveler preferences, with a cautious outlook on cash management[196] - The group will continue to enhance brand awareness through diversified promotional activities and expand its customer base[198] Employee and Operational Changes - As of December 31, 2023, the total number of employees in the group increased to 419, up from 294 in 2022, with 123 full-time leaders and tour guides[195] - Sales expenses rose by 88.5% to approximately HKD 70,000,000, primarily due to the recruitment of more frontline staff in response to the recovery of the travel market[158] - The group closed all "EGL Market" physical retail stores to refocus resources on its core travel business, while still meeting customer needs through online shopping platforms[64] - The group plans to close all "EGL Market" physical retail stores by the end of October 2023 to refocus resources on its core travel-related business[198] Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.07 per ordinary share, payable on January 18, 2024[116] - The company declared a special dividend of HKD 0.07 per share, totaling HKD 35,171,500, to be distributed on January 18, 2024[163] Segment Performance - The group's revenue for the year reached approximately HKD 1,176,100,000, a significant increase of 973.8% compared to HKD 109,500,000 in 2022, contributing 86.1% to total group revenue[63] - Gross profit for the travel segment was approximately HKD 229,600,000, up 695.6% from HKD 28,900,000 in 2022[63] - Hotel operations generated revenue of approximately HKD 111,600,000, representing a 133.2% increase from HKD 47,900,000 in 2022, with external customer revenue at HKD 93,800,000[65] - Revenue from the tour group segment was HKD 1,176,082,000, with a gross profit of HKD 229,620,000 and a gross margin of 19.5%, up from 26.4% in 2022[147] - Revenue from free travel products and related services increased by 350.8% to approximately HKD 88,800,000, contributing 6.5% to total revenue, with a gross profit of HKD 58,800,000, up 557.3%[152] - Revenue from merchandise sales decreased by 64.8% to approximately HKD 7,400,000, with a gross profit of HKD 2,800,000, but the gross margin improved to 38.4% from 29.7% in 2022[153]

Financial Performance - The Group recorded total revenue of approximately HK$540.1 million for the six months ended June 30, 2023, representing a significant increase of 1,759.8% compared to HK$29.0 million in the same period of 2022[14]. - Gross profit amounted to approximately HK$136.8 million, a change of 2,116.6% from a gross loss of HK$6.8 million in the same period of 2022[14]. - Profit attributable to owners of the Company was approximately HK$20.7 million, compared to a loss of HK$56.8 million in the same period of 2022, marking a turnaround[14]. - The gross profit margin improved to 25.3% from a negative margin of -23.4% in the previous year[14]. - The operating profit margin was 6.9%, a significant recovery from -217.5% in the same period of 2022[14]. - The net profit margin reached 3.8%, compared to -195.5% in the previous year[14]. - Basic earnings per share for the first half of 2023 was HK4.12 cents, compared to a basic loss per share of HK11.30 cents for the same period in 2022[53]. - Revenue from package tours reached approximately HK$450.5 million, a remarkable increase of 19,799.1% and contributing 83.4% to the Group's total revenue[60]. - Revenue from FIT products and ancillary travel-related products and services was approximately HK$40.1 million, an increase of 1,545.3%, contributing 7.4% to total revenue[62]. Operational Developments - The Group expanded its operations by collaborating with four prefectures in Kyushu, Japan, and opened a new travel agency branch in Kowloon Bay, bringing the total number of branches in Hong Kong to six[22]. - In the first half of 2023, the Group's hotel business in Japan achieved a satisfactory occupancy rate, contributing positively to the financial position[27][29]. - The Group launched themed branches in Hong Kong, collaborating with four prefectures from Kyushu, Japan, and opened a new travel agency branch in Kowloon Bay, bringing the total to six branches as of June 30, 2023[24]. - The Group plans to expand its sales network by opening additional travel agency branches in Tuen Mun and Tseung Kwan O, and reopening sales outlets in Macau[45]. - The Group opened a new travel agency branch in Kowloon Bay in March 2023, with plans to open additional branches in Tuen Mun and Tseung Kwan O in the third quarter of 2023, totaling 8 branches in Hong Kong by year-end[152]. Marketing and Branding - The Group introduced a new sub-brand "Don't just visit Japan, go travel around the world with us," promoting global travel experiences and organizing a successful promotional event from June 7 to June 25, 2023[26][28]. - The Group's marketing efforts included hundreds of special package tours, such as the "No Plan No Worry Summer Family Travel" and "Singapore F1 Racing Package"[26][28]. - The Group's marketing strategies have received significant market attention, indicating a positive response to their promotional activities[26][28]. - The Group's efforts in enhancing brand image and diversifying travel offerings align with the objectives of "A New Prospect for 2023" and "Proactive Stepping Forward"[28][31]. Financial Position and Ratios - The gearing ratio decreased to 64.1% from 75.1% as of December 31, 2022[14]. - The net debts over equity ratio improved to 1,206.8% from 2,234.2% as of December 31, 2022[14]. - The current ratio increased to 1.2 times as of June 30, 2023, up from 0.7 times at the end of 2022, due to an increase in cash and a decrease in current borrowings[102]. - Return on total assets was 2.2%, a recovery from -7.3% in the previous year, while return on equity attributable to owners was 70.1%, up from -159.7%[110]. - The interest coverage ratio improved to 2.9 times, compared to -6.3 times for the same period in 2022, driven by a significant recovery in the travel market[99]. Employee and Training Initiatives - The Group participated in various recruitment campaigns in 2023, including internship programs for tourism students and recruitment events targeting graduates[31][33]. - The Group resumed normal staff training courses in February 2023 to boost morale and communication among employees[34]. - As of June 30, 2023, the Group's total workforce increased to 385 employees, representing approximately 61.6% of the pre-epidemic total, with expectations to rise to over 80.0% in the second half of 2023[151]. Corporate Governance and Compliance - The Group is committed to high standards of corporate governance and has complied with applicable code provisions during the first half of 2023[164]. - Directors confirmed compliance with the Model Code for Securities Transactions throughout the six months ended June 30, 2023[167]. - No purchases, sales, or redemptions of the Company's listed securities occurred during the first half of 2023[168]. Social Responsibility and Community Engagement - In response to the February 2023 earthquake in Türkiye, the Group collected 3,000 boxes of relief supplies and raised over HK$70,000 for winter clothing donations[39]. - The Group has implemented environmental initiatives, including recycling programs and participation in the "Earth Hour" campaign to promote energy conservation[36][38]. Future Outlook - The management remains cautiously optimistic about the swift recovery of Hong Kong's economy and the travel industry environment[150]. - The Group anticipates its financial performance to gradually return to pre-COVID-19 levels[158]. - The Board believes the Group will have sufficient working capital to finance its operations in 2023 and 2024, supported by Great Port[160].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 EGL Holdings Company Limited 東瀛遊控股有限公司 （於開曼群島註冊成立的有限公司） 6882 （股份代號： ） 2023 6 30 截至 年 月 日止六個月 中期業績公告 集團財務概要 6 30 20截23至 月 日2止02六2 個月 變動 千港元 千港元 百分比 540,081 29,039 1,759.8% 收益 136,846 (6,786) 2,116.6% 毛利╱（虧） 20,690 (56,771) 136.4% 本公司擁有人應佔溢利╱（虧損） 每股溢利╱（虧損） 4.12 (11.30) 基本及攤薄（港仙） 利潤率 25.3% -23.4% 毛利率 6.9% -217.5% ...

Financial Performance - The Group recorded total revenue of approximately HK$196.5 million for the year ended December 31, 2022, representing a significant increase of 340.8% compared to HK$44.6 million in 2021[19]. - Gross profit amounted to approximately HK$38.9 million, a change of 233.3% from a gross loss of approximately HK$29.2 million in 2021[19]. - Loss attributable to owners of the Company was approximately HK$74.3 million, a decrease of 52.3% compared to HK$155.6 million in 2021[19]. - Revenue from package tours reached approximately HK$108.3 million, an increase of 1,300.7% and contributing 55.1% to the Group's total revenue[58]. - Revenue from FIT products and ancillary travel related products and services was approximately HK$19.4 million, representing an increase of 269.9% and contributing 9.9% to total revenue[61]. - Merchandise sales revenue amounted to approximately HK$20.9 million, an increase of 19.6% and contributing 10.7% to total revenue[67]. - Hotel operation revenue for the year amounted to approximately HK$47.9 million, representing an increase of 239.2% compared to HK$14.1 million in 2021[73]. - The gross profit margin improved to 19.8% from -65.5% in 2021, indicating a significant recovery in profitability[75]. - The interest coverage ratio improved to -3.1 times from -12.4 times in 2021, reflecting a decrease in operating loss before finance costs[99]. - The current ratio as of December 31, 2022, was 0.7 times, slightly up from 0.6 times in 2021, indicating improved liquidity[101]. - Total assets as of December 31, 2022, were HK$905,056,000, slightly down from HK$905,115,000 in 2021[159]. - Total liabilities increased to HK$884,587,000 in 2022 from HK$782,821,000 in 2021, indicating a rise of approximately 13.0%[159]. - The gearing ratio, defined as total borrowings over total assets, was 75.1% in 2022, slightly down from 76.6% in 2021, reflecting a marginal improvement in leverage[159]. - The equity attributable to owners of the Company as of December 31, 2022, was HK$350,577,000, showing a slight increase from HK$350,015,000 in 2021[167]. - The earnings per share for the year 2022 was HK$2.79, a significant recovery from a loss of HK$21.65 in 2021[169]. Travel and Tourism Recovery - The Group resumed outbound travel to Japan on June 22, 2022, marking the first tour after the COVID-19 pandemic, which significantly enhanced financial performance[19]. - The Hong Kong government adjusted quarantine measures in August 2022 to a "3+4" model, further stimulating outbound travel demand[24]. - By mid-October 2022, the Group's business for Japan began to grow due to the introduction of visa-free travel for Hong Kong travelers[24]. - The Group partnered with Japanese airlines to operate charter flights to Hokkaido, providing approximately 360 seats during the Christmas and New Year holidays[24]. - The Group resumed outbound package tours in June 2022, with the first tour to Japan attracting significant media attention[25]. - The Group's hotel business benefited from the Japanese government's gradual reopening to inbound tourists, which began in May 2022[68]. - The Group's financial performance improved significantly due to the relaxation of quarantine requirements in Hong Kong and the reopening of Japan to tourists[47]. Operational Adjustments and Strategies - The introduction of the "EGL Market" business and local tours helped mitigate revenue losses during the early part of 2022[23]. - The Group's efforts to enhance customer experience included providing gift boxes with fresh fruits and snacks during quarantine periods for travelers returning from Japan[23]. - The Group plans to cautiously increase human resources and outlet networks to maintain competitive advantage as Hong Kong enters a post-pandemic phase[39]. - The Group aims to explore strategic partnerships and development opportunities to expand its business and revenue sources[39]. - The Group plans to open a new travel agency branch in Kowloon Bay, bringing the total to 6 branches in Hong Kong[149][151]. - The Group will continue to expand its sales network and monitor cash positions to explore additional income sources[150][153]. Employee and Corporate Governance - The total number of employees increased to 294 as of December 31, 2022, from 254 as of December 31, 2021, with a notable rise in full-time leaders and guides from 22 to 56[143]. - Employee remuneration packages are regularly reviewed based on market information and individual performance, with no significant changes reported during the year[145]. - The Group has maintained over 190 employees during the peak of the epidemic, representing more than 30% of its original workforce[146]. - The Group is committed to improving its corporate governance and addressing environmental, social, and ethical responsibilities[200]. Environmental and Sustainability Efforts - The Group has implemented internal recycling programs for consumables such as toner, cartridges, and paper to minimize environmental impact[200]. - Recycled paper has been used as printing materials, contributing to sustainability efforts[200]. - The Group completed the upgrade of electricity systems to achieve energy savings in the workplace[200]. Risks and Challenges - 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[189]. - The Company faces significant risks from natural disasters, terrorism, and outbreaks of contagious diseases, which could adversely affect customer demand for travel-related services[188]. - The competitive landscape in the hospitality industry in Japan poses challenges for the Company's hotel operations, particularly in Osaka and Okinawa[195]. - The Company has highlighted the impact of COVID-19 on its operations and the ongoing uncertainties in the market[186].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 EGL Holdings Company Limited 東瀛遊控股有限公司 （於開曼群島註冊成立的有限公司） 6882 （股份代號： ） 2022 12 31 截至 年 月 日止年度 年度業績公告 集團財務概要 12 31 截至 月 日止年度 2022 2021 變動 千港元 千港元 百分比 196,479 44,578 340.8% 收益 38,881 (29,177) 233.3% 毛利╱（毛虧） (74,299) (155,635) -52.3% 本公司擁有人應佔虧損 每股虧損 (14.79) (30.98) 基本及攤薄（港仙） ...

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].