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].