YING HAI GROUP(08668)

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瀛海集团(08668) - 2020 - 年度财报
2021-03-19 14:56
Financial Performance - The company's revenue for the year ended December 31, 2020, was HKD 20,114,000, a significant decrease of 88.8% compared to HKD 180,241,000 in 2019[13] - The company reported a loss before tax of HKD 25,360,000 for 2020, compared to a loss of HKD 921,000 in 2019[13] - Total assets decreased to HKD 92,830,000 in 2020 from HKD 119,314,000 in 2019, reflecting a decline of 22.2%[14] - The total equity decreased to HKD 72,906,000 in 2020 from HKD 98,242,000 in 2019, representing a decrease of 25.7%[14] - The group's revenue decreased approximately 88.9% from about HKD 180.2 million for the year ended December 31, 2019, to about HKD 20.1 million for the year ended December 31, 2020, primarily due to reduced demand for hotel room sales and car rental services caused by the pandemic and travel restrictions in Macau[19] - The cost of sales dropped approximately 86.8%, from about HKD 143.9 million in 2019 to about HKD 19.0 million in 2020, reflecting the decline in sales and distribution of hotel rooms and car rental services[20] - Gross profit fell approximately 97.0%, from about HKD 36.3 million in 2019 to about HKD 1.1 million in 2020, mainly due to the significant decrease in revenue from hotel room sales and car rental services[22] - The group recorded a loss of approximately HKD 25.5 million for the year ended December 31, 2020, compared to a loss of about HKD 1.1 million for the year ended December 31, 2019, attributed to reduced revenue, impairment losses, and increased administrative expenses[27] Impact of COVID-19 - The company faced severe impacts from the COVID-19 pandemic, which led to significant declines in the tourism industry in Macau and Hong Kong[16] - The business and financial performance of the group was significantly impacted by the pandemic and travel restrictions imposed by the Macau government[68] - The group faced significant risks due to the pandemic, impacting the tourism industry and consumer sentiment in Macau, with potential long-term effects on visitor numbers[32] Operational Developments - The company focuses on providing business-to-business travel services, including hotel room sales, car rental services, and ticket sales for travel-related products[17] - The company has been authorized to provide cross-border car rental services between Macau and Hong Kong since December 2020[17] - Future efforts will be directed towards consolidating existing business and providing stable returns and growth prospects for shareholders[10] - The company aims to enhance its service offerings and expand its market presence in the travel sector[10] - The company has purchased eight new vehicles for cross-border transportation and car rental services, with plans to adjust fleet expansion based on market demand[30] - The group plans to expand its fleet by acquiring additional vehicles and hiring more drivers to meet the growing demand for multi-purpose car rental services in Macau[67] - The group aims to establish hotel room guarantee agreements with more hotel operators to increase the number of mid-to-high-end hotel rooms, thereby attracting business travelers and high-spending customers[67] Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules, ensuring high levels of transparency and accountability[90] - The board continues to monitor credit risk, which primarily arises from trade receivables and cash deposits[55] - The company has established three board committees: the audit committee, the remuneration committee, and the nomination committee, to enhance corporate governance[101] - The audit committee is composed entirely of independent non-executive directors, ensuring unbiased oversight of financial reporting[102] - The company received an annual independence confirmation from all independent non-executive directors, affirming their independence[97] - The board has a policy to ensure that appointed directors possess relevant business, financial, and management skills necessary for the group's operations[113] Environmental, Social, and Governance (ESG) Initiatives - The group emphasizes sustainable development as a key driver for creating value for stakeholders, adhering to environmental, social, and governance (ESG) guidelines[157] - In 2020, the group implemented a "Green Environmental Policy and Procedures" aimed at balancing business returns with environmental protection[161] - The management team is responsible for identifying and assessing significant environmental and social risks related to core business activities[158] - The group has established key performance indicators (KPIs) to monitor the implementation of ESG strategies and policies[159] - The group aims to reduce energy, water, and other natural resource usage through successful execution of its environmental policies, which can also lower operational costs[164] Financial Position - As of December 31, 2020, approximately HKD 30.6 million of the net proceeds remained unutilized, held in bank fixed deposits[29] - The group's cash balance was approximately HKD 55.0 million, a decrease from HKD 71.0 million as of December 31, 2019, mainly due to acquisitions and operational expenses[41] - The total borrowings and lease liabilities amounted to approximately HKD 14.3 million as of December 31, 2020, an increase from HKD 3.6 million in the previous year[42] - The group's asset-liability ratio increased to approximately 19.7% as of December 31, 2020, compared to 3.6% the previous year, primarily due to increased bank borrowings[45] Employee and Workforce Management - The employee cost for the year ended December 31, 2020, was approximately HKD 8.2 million, a decrease of about 21.2% from HKD 10.4 million in 2019[62] - The group had 71 employees as of December 31, 2020, down from 91 employees in 2019[62] - The company maintained good relationships with employees, customers, and suppliers, with no significant disputes reported during the year[65] Future Outlook - The group anticipates that the gradual reopening of the border between China and Macau will lead to an increase in the number of Chinese tourists visiting Macau in 2021[68] - The group will continue to explore new hotel business opportunities under attractive terms to capitalize on market rebound opportunities once conditions improve[69] - The group is committed to implementing cost control measures until market conditions improve[69] - The group aims to provide stable returns and growth prospects for its shareholders while consolidating its existing business development[70]
瀛海集团(08668) - 2020 Q3 - 季度财报
2020-11-09 13:01
[Characteristics of GEM and Directors' Responsibility Statement](index=2&type=section&id=GEM%E7%9A%84%E7%89%B9%E8%89%B2%E5%8F%8A%E8%91%A3%E4%BA%8B%E8%B2%AC%E4%BB%BB%E8%81%B2%E6%98%8E) This section outlines the characteristics of the GEM market and the directors' collective and individual responsibility for the accuracy and completeness of the report [Characteristics of GEM](index=2&type=section&id=GEM%E7%9A%84%E7%89%B9%E8%89%B2) The GEM market provides a listing platform for small and medium-sized companies, entailing higher investment risks and potential for significant market volatility - GEM market is positioned for small and medium-sized companies, with higher investment risks[2](index=2&type=chunk) - GEM securities may be subject to significant market volatility and cannot guarantee high liquidity[2](index=2&type=chunk) [Directors' Responsibility Statement](index=2&type=section&id=%E8%91%A3%E4%BA%8B%E8%B2%AC%E4%BB%BB%E8%81%B2%E6%98%8E) The Board of Directors collectively and individually assumes full responsibility for the accuracy, completeness, and non-misleading nature of the information in this report - The Board of Directors assumes full responsibility for the accuracy, completeness, and non-misleading nature of the information in this report[3](index=3&type=chunk) [Financial Highlights](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the nine months ended September 30, 2020, the Group's revenue significantly decreased by **88.3%** to **HK$16.1 million**, resulting in a loss attributable to owners of **HK$17.4 million** Financial Highlights for the Nine Months Ended September 30, 2020 | Metric | Nine Months Ended Sep 30, 2020 (HK$'000) | Nine Months Ended Sep 30, 2019 (HK$'000) | Change (HK$'000) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Revenue | 16,100 | 137,000 | (120,900) | -88.3% | | Loss for the period attributable to owners of the Company | (17,400) | (700) | (16,700) | 2385.7% | | Basic and diluted loss per share | (1.45) HK cents | (0.08) HK cents | (1.37) HK cents | 1712.5% | - The Board of Directors resolved not to recommend the payment of an interim dividend for the nine months ended September 30, 2020[6](index=6&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss, statement of changes in equity, and detailed notes on accounting policies and segment information [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group recorded a significant decline in revenue for the nine months ended September 30, 2020, leading to a substantial reduction in gross profit and a loss of **HK$17.4 million** for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Nine Months Ended September 30) | Metric | 2020 (HK$'000) | 2019 (HK$'000) | Change (HK$'000) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Revenue | 16,087 | 136,997 | (120,910) | -88.3% | | Cost of sales | (13,740) | (109,040) | 95,300 | -87.4% | | Gross profit | 2,347 | 27,957 | (25,610) | -91.6% | | Other income and gains | 1,154 | 451 | 703 | 155.9% | | Administrative expenses | (20,791) | (11,705) | (9,086) | 77.6% | | Listing expenses | — | (16,868) | 16,868 | -100.0% | | Finance costs | (158) | (163) | 5 | -3.1% | | Loss before tax | (17,448) | (328) | (17,120) | 5219.5% | | Income tax credit/(expense) | — | (419) | 419 | -100.0% | | Loss for the period | (17,448) | (747) | (16,701) | 2235.7% | | Basic and diluted loss per share | (1.45) HK cents | (0.08) HK cents | (1.37) HK cents | 1712.5% | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the nine months ended September 30, 2020, total equity decreased from **HK$98.5 million** to **HK$80.8 million**, primarily due to a loss of **HK$17.4 million** for the period Condensed Consolidated Statement of Changes in Equity (For the Nine Months Ended September 30) | Metric | Sep 30, 2020 (HK$'000) | Sep 30, 2019 (HK$'000) | | :--- | :--- | :--- | | Share capital | 12,000 | 12,000 | | Share premium | 50,302 | 50,302 | | Merger reserve | 3,011 | 3,011 | | Statutory reserve | 801 | 801 | | Revaluation reserve | (6) | — | | Exchange fluctuation reserve | (92) | (135) | | Retained earnings | 14,773 | 32,540 | | **Total** | **80,789** | **98,519** | - The loss for the period of **HK$17.4 million** had a significant negative impact on equity[10](index=10&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes to the financial statements, covering company information, accounting policies, segment revenue, other income, expenses, and loss per share calculations [General Information](index=8&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The Company was incorporated in the Cayman Islands and listed on GEM of the Stock Exchange on **September 26, 2019**, primarily engaging in ticket sales, hotel room distribution, and vehicle rental services in Macau - The Company was listed on GEM of the Stock Exchange on **September 26, 2019**[19](index=19&type=chunk) - Principal activities include sales and distribution of hotel rooms, air tickets, travel-related products and services, concert sponsorship, and vehicle rental services in Macau[19](index=19&type=chunk) [Reorganisation](index=8&type=section&id=%E9%87%8D%E7%B5%84) The Company completed a reorganisation on **March 8, 2019**, becoming the group's holding company, with no changes in business management or ultimate owners before and after the reorganisation - The Company completed a reorganisation on **March 8, 2019**, becoming the group's holding company[21](index=21&type=chunk) - The reorganisation was an intra-group reorganisation, with no changes in business management or ultimate owners[21](index=21&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=8&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The unaudited condensed consolidated financial statements are prepared in accordance with **HKAS 34** and are consistent with the accounting policies adopted in the audited consolidated financial statements for the year ended December 31, 2019 - Financial statements are prepared in accordance with **HKAS 34** and are consistent with the accounting policies of the annual consolidated financial statements[23](index=23&type=chunk) - The application of new and revised HKFRSs did not have a significant impact on the amounts or disclosures in the statements[24](index=24&type=chunk) [Revenue and Segment Information](index=9&type=section&id=%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates two reportable segments, travel and automobile businesses, both experiencing significant declines in revenue and results for the nine months ended September 30, 2020 Segment Revenue (For the Nine Months Ended September 30) | Segment | 2020 (HK$'000) | 2019 (HK$'000) | Change (HK$'000) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Travel business | 14,275 | 127,719 | (113,444) | -88.8% | | Automobile business | 1,812 | 9,278 | (7,466) | -80.5% | | **Total** | **16,087** | **136,997** | **(120,910)** | **-88.3%** | Segment Results (For the Nine Months Ended September 30, 2020) | Segment | Result (HK$'000) | | :--- | :--- | | Travel business | (7,146) | | Automobile business | (5,915) | | **Total reportable segment results** | **(13,061)** | - Travel business includes sales and distribution of hotel rooms, air tickets, travel packages, and concert sponsorship[31](index=31&type=chunk) - Automobile business refers to vehicle rental and limousine services in Macau[32](index=32&type=chunk) [Other Income and Gains](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) For the nine months ended September 30, 2020, other income and gains increased to **HK$1.2 million**, primarily due to government subsidies of **HK$694 thousand** Other Income and Gains (For the Nine Months Ended September 30) | Item | 2020 (HK$'000) | 2019 (HK$'000) | | :--- | :--- | :--- | | Interest income | 87 | 36 | | Exchange gains | 51 | 18 | | Government grants | 694 | — | | Miscellaneous income | 322 | 25 | | **Total** | **1,154** | **451** | - Government grants were the primary reason for the increase in other income and gains in **2020**[37](index=37&type=chunk) [Finance Costs](index=11&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the nine months ended September 30, 2020, finance costs remained stable at approximately **HK$158 thousand**, mainly from bank overdraft interest and lease liabilities interest Finance Costs (For the Nine Months Ended September 30) | Item | 2020 (HK$'000) | 2019 (HK$'000) | | :--- | :--- | :--- | | Interest on bank overdrafts | 79 | — | | Interest on lease liabilities | 79 | 70 | | Interest on secured bank borrowings | — | 93 | | **Total** | **158** | **163** | [Loss Before Tax](index=11&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E虧%E6%90%8D) For the nine months ended September 30, 2020, the loss before tax was **HK$17.4 million**, primarily driven by depreciation of property, plant and equipment, right-of-use assets, and impairment losses Components of Loss Before Tax (For the Nine Months Ended September 30) | Item | 2020 (HK$'000) | 2019 (HK$'000) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 4,554 | 3,502 | | Depreciation of right-of-use assets | 1,310 | 1,712 | | Amortisation of intangible assets | 392 | — | | Impairment loss recognised on trade receivables | 616 | — | | Impairment loss recognised on right-of-use assets | 1,832 | — | | Listing expenses | — | 16,868 | | Employee benefit expenses | 8,129 | 7,759 | [Income Tax Credit/(Expense)](index=12&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%EF%BC%88%E6%8A%B5%E5%85%8D%EF%BC%89%E2%88%95%E9%96%8B%E6%94%AF) For the nine months ended September 30, 2020, the Group incurred no income tax expense due to the absence of taxable profits, contrasting with an expense of **HK$419 thousand** in the prior period - For the nine-month period in **2020**, the Group had no income tax expense due to no taxable profits[43](index=43&type=chunk) Income Tax Credit/(Expense) (For the Nine Months Ended September 30) | Item | 2020 (HK$'000) | 2019 (HK$'000) | | :--- | :--- | :--- | | Current tax | — | 374 | | Deferred tax | — | 45 | | **Total** | **—** | **419** | [Loss Per Share](index=12&type=section&id=%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the nine months ended September 30, 2020, basic and diluted loss per share attributable to owners was **1.45 HK cents**, a significant increase from **0.08 HK cents** in the prior period Loss Per Share (For the Nine Months Ended September 30) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HK$'000) | (17,448) | (747) | | Weighted average number of ordinary shares (thousands) | 1,200,000 | 905,495 | | **Basic and diluted loss per share (HK cents)** | **(1.45)** | **(0.08)** | - Diluted loss per share is the same as basic loss per share due to the absence of potential dilutive ordinary shares[46](index=46&type=chunk) [Dividends](index=13&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved not to declare or propose an interim dividend for the nine months ended September 30, 2020, unlike the prior period's pre-listing interim dividend of approximately **HK$8.9 million** - For the nine months ended September 30, **2020**, the Company did not declare or propose an interim dividend[47](index=47&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section details the Group's business performance, financial position, use of IPO proceeds, strategic progress, key risks, employee policies, and future outlook, highlighting the significant adverse impact of the **COVID-19** pandemic [Business Review](index=14&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group is a licensed wholesale travel agent and car rental service provider in Macau, offering hotel room sales, car rentals, air tickets, travel packages, and concert sponsorship, having listed on GEM on **September 26, 2019** - The Group's principal activities are travel services and automobile rental services within Macau[48](index=48&type=chunk) - Business scope includes hotel room sales, car rentals, air tickets and travel packages, and concert sponsorship[48](index=48&type=chunk) - The Company successfully listed on GEM of the Stock Exchange on **September 26, 2019**[49](index=49&type=chunk) [Financial Review](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's financial performance for the nine months ended September 30, 2020, was severely impacted by the **COVID-19** pandemic, leading to substantial revenue decline, reduced gross profit, and significant losses [Revenue](index=14&type=section&id=%E6%94%B6%E7%9B%8A) Group revenue significantly decreased by **88.3%** to **HK$16.1 million** for the nine months ended September 30, 2020, primarily due to reduced demand for hotel rooms and car rental services in Macau caused by the pandemic Revenue Change (For the Nine Months Ended September 30) | Metric | 2020 (HK$ Million) | 2019 (HK$ Million) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | 16.1 | 137.0 | -88.3% | - The significant decrease in revenue was primarily attributable to the outbreak of **COVID-19**, travel restrictions, and a decline in tourist arrivals in Macau[50](index=50&type=chunk) [Cost of Sales](index=14&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased by **87.4%** to **HK$13.7 million** for the nine months ended September 30, 2020, primarily due to reduced sales of hotel rooms and car rental services Cost of Sales Change (For the Nine Months Ended September 30) | Metric | 2020 (HK$ Million) | 2019 (HK$ Million) | Change Percentage | | :--- | :--- | :--- | :--- | | Cost of sales | 13.7 | 109.0 | -87.4% | - The decrease in cost of sales was mainly due to reduced sales of hotel rooms and car rental services[51](index=51&type=chunk) [Gross Profit](index=14&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit significantly declined by **91.8%** to **HK$2.3 million** for the nine months ended September 30, 2020, primarily impacted by the substantial decrease in revenue Gross Profit Change (For the Nine Months Ended September 30) | Metric | 2020 (HK$ Million) | 2019 (HK$ Million) | Change Percentage | | :--- | :--- | :--- | :--- | | Gross profit | 2.3 | 28.0 | -91.8% | - The significant decline in gross profit was primarily due to reduced revenue from hotel room sales and car rental services[52](index=52&type=chunk) [Other Income and Gains](index=14&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains increased to **HK$1.2 million** for the nine months ended September 30, 2020, primarily benefiting from a one-off government grant Other Income and Gains Change (For the Nine Months Ended September 30) | Metric | 2020 (HK$ Million) | 2019 (HK$ Million) | Change Percentage | | :--- | :--- | :--- | :--- | | Other income and gains | 1.2 | 0.451 | 155.0% | - The increase in other income and gains was mainly due to a one-off government grant received in **2020**[53](index=53&type=chunk) [Administrative Expenses](index=15&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by **77.8%** to **HK$20.8 million** for the nine months ended September 30, 2020, primarily due to impairment losses on right-of-use assets and increased employee benefits, depreciation, and professional fees post-listing Administrative Expenses Change (For the Nine Months Ended September 30) | Metric | 2020 (HK$ Million) | 2019 (HK$ Million) | Change Percentage | | :--- | :--- | :--- | :--- | | Administrative expenses | 20.8 | 11.7 | 77.8% | - The increase in administrative expenses was mainly due to impairment losses on right-of-use assets, increased employee benefits, depreciation, and professional fees[54](index=54&type=chunk) [Income Tax Expense](index=15&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the nine months ended September 30, 2020, the Group incurred no income tax expense as no taxable profits were generated during the period - For the nine-month period in **2020**, the Group had no income tax expense due to no taxable profits[55](index=55&type=chunk) [Finance Costs](index=15&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) The Group's finance costs remained stable at approximately **HK$158 thousand** and **HK$163 thousand** for the nine-month periods in 2020 and 2019, respectively Finance Costs Change (For the Nine Months Ended September 30) | Metric | 2020 (HK$'000) | 2019 (HK$'000) | Change Percentage | | :--- | :--- | :--- | :--- | | Finance costs | 158 | 163 | -3.1% | [Loss for the Period](index=15&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) For the nine months ended September 30, 2020, the Group recorded a loss of approximately **HK$17.4 million**, a significant increase from **HK$0.7 million** in the prior period, primarily due to reduced revenue and increased administrative expenses caused by the pandemic Loss for the Period Change (For the Nine Months Ended September 30) | Metric | 2020 (HK$ Million) | 2019 (HK$ Million) | Change Percentage | | :--- | :--- | :--- | :--- | | Loss for the period | 17.4 | 0.7 | 2385.7% | - The increase in loss was mainly due to a significant decrease in revenue and an increase in administrative expenses caused by the pandemic[57](index=57&type=chunk) [Use of Net Proceeds from Listing](index=16&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%8D%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) Of the approximately **HK$39.3 million** net proceeds from listing, **HK$8.5 million** was utilised by September 30, 2020, with the remaining **HK$30.8 million** unutilised due to delays in fleet expansion and hotel cooperation plans caused by the pandemic Use of Net Proceeds from Listing (As at September 30, 2020) | Intended Use | Planned Amount (HK$'000) | Actual Use (HK$'000) | Unutilised Amount (HK$'000) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | | Expand our fleet | 20,568 | 3,965 | 16,603 | December 2022 | | Collaborate with more hotel operators | 6,480 | — | 6,480 | December 2021 | | Increase marketing and expand sales channels | 6,917 | 2,319 | 4,598 | December 2022 | | Improve our operational efficiency | 1,659 | 1,485 | 174 | December 2020 | | Expand our workforce | 2,592 | 388 | 2,204 | December 2022 | | General working capital | 1,080 | 330 | 750 | December 2022 | | **Total** | **39,296** | **8,487** | **30,809** | | - The delay in utilising proceeds was mainly due to the outbreak of the pandemic and market conditions, postponing fleet expansion and hotel operator collaboration plans[61](index=61&type=chunk) - The unutilised portion of approximately **HK$30.8 million** is placed in bank time deposits[61](index=61&type=chunk) [Comparison of Business Strategies with Actual Business Progress](index=17&type=section&id=%E6%A5%AD%E5%8B%99%E7%AD%96%E7%95%A5%E8%88%87%E5%AF%A6%E9%9A%9B%E6%A5%AD%E5%8B%99%E9%80%B2%E5%B1%95%E7%9A%84%E6%AF%94%E8%BC%83) The Group has made progress on business objectives, including new car purchases and office activation, but fleet expansion and hotel collaboration plans have been adjusted due to market demand and pandemic impacts, while actively seeking partners and expanding sales channels - Eight new cars have been purchased to expand the fleet, with progress to be adjusted based on Macau market demand[63](index=63&type=chunk) - Actively seeking popular and high-quality hotels for collaboration[63](index=63&type=chunk) - Increasing marketing and sales channels through new service points, developing online sales platforms, and social media advertising[63](index=63&type=chunk) - New office renovation and activation are complete, and experienced staff are being recruited to expand the workforce[63](index=63&type=chunk) [Key Risks and Uncertainties in Achieving Business Strategies](index=17&type=section&id=%E5%AF%A6%E7%8F%BE%E6%A5%AD%E5%8B%99%E7%AD%96%E7%95%A5%E6%99%82%E7%9A%84%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E6%98%8E%E6%9C%97%E5%9B%A0%E7%B4%A0) The Group faces multiple risks in executing its business strategies, including the ongoing impact of the pandemic on Macau's tourism, challenges in securing hotel partnerships, difficulties in market timing, and evolving consumer behavior amid intense competition - The pandemic severely impacts Macau's tourism, leading to travel restrictions and low consumer sentiment, which may continue to affect business[64](index=64&type=chunk) - Failure to find hotel operators offering attractive terms to achieve expansion plans[64](index=64&type=chunk) - Difficulty in grasping business trends to determine the optimal timing for market entry or new sales channel expansion[64](index=64&type=chunk) - Facing changing consumer behavior and intense competition in a volatile business environment[64](index=64&type=chunk) [Key Risks and Uncertainties](index=18&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E6%98%8E%E6%9C%97%E5%9B%A0%E7%B4%A0) The Group faces various risks that could significantly impact its business, financial condition, or operating results, including reliance on Macau's tourism, policy changes, border closures, customer payment delays, and concentration risks with key suppliers and customers - The pandemic, travel restrictions, and low consumer sentiment may lead to a sustained decrease in tourist arrivals to Macau[66](index=66&type=chunk) - Revenue primarily derived from Macau is susceptible to changes in Macau and China's policies and economic environment[67](index=67&type=chunk) - Risk of border closures or re-imposition of travel restrictions[68](index=68&type=chunk) - Customers may delay or default on payments, while the Group still incurs costs[69](index=69&type=chunk) - Key suppliers may deal directly with customers, or travel agent customers may obtain hotel rooms from each other, bypassing the Group[69](index=69&type=chunk) - Revenue primarily from Hotel Royal Macau, with adverse effects if agreements terminate or renewal terms are unfavorable[69](index=69&type=chunk) - Failure to sell hotel rooms above pre-determined prices or reduced supply from hotel operators may lead to reduced profits or losses[69](index=69&type=chunk) - Concentration risk of revenue from a single customer (Customer A), where a reduction or loss of business would significantly and adversely impact operations and financial condition[69](index=69&type=chunk)[70](index=70&type=chunk) - Failure to obtain and maintain sufficient parking spaces at a reasonable cost may affect growth opportunities[71](index=71&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of September 30, 2020, the Group employed **113** staff, with employee benefit expenses, including directors' emoluments, amounting to approximately **HK$8.1 million**, and remuneration determined by market terms, performance, qualifications, and experience Employee and Remuneration Data (For the Nine Months Ended September 30) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Number of employees | 113 | 109 | | Employee benefit expenses (HK$ Million) | 8.1 | 7.8 | [Significant Acquisitions and Disposals of Subsidiaries](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8) On **July 9, 2020**, the Company acquired a **49%** interest in Meet Culture Limited for approximately **HK$2.2 million**, a souvenir design and sales business expected to complement travel operations and provide synergies, with no other significant acquisitions or disposals during the period - Acquired a **49%** interest in Meet Culture Limited on **July 9, 2020**, for approximately **HK$2.2 million**[73](index=73&type=chunk) - Meet Culture Limited primarily engages in souvenir design and sales, expected to complement travel business and provide synergies[73](index=73&type=chunk) - The acquisition of a **22%** interest from an associated company constituted a fully exempt connected transaction[73](index=73&type=chunk) [Significant Investments Held](index=19&type=section&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) As of **September 30, 2020**, the Group held no other significant investments apart from equity instruments at fair value through other comprehensive income and interests in an associate - The Group holds no other significant investments, only equity instruments at fair value through other comprehensive income and interests in an associate[75](index=75&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's liquidity and financial resources indicate a stable capital structure and improved cash position, but increased borrowings and gearing ratio reflect changes in working capital needs and financing activities [Capital Structure](index=19&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) There have been no significant changes in the Company's share capital structure from the listing date up to **September 30, 2020** - There have been no significant changes in the Company's share capital structure from the listing date up to **September 30, 2020**[76](index=76&type=chunk) [Cash Position](index=19&type=section&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) As of **September 30, 2020**, bank balances and cash were approximately **HK$62.5 million**, an increase from the prior period, mainly due to cash generated from bank overdrafts and transfers to long-term bank deposits for guarantees Bank Balances and Cash (As at September 30) | Metric | 2020 (HK$ Million) | 2019 (HK$ Million) | Change (HK$ Million) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Bank balances and cash | 62.5 | 50.5 | 12.0 | 23.8% | - The increase in cash was mainly due to cash generated from bank overdrafts and a portion of cash transferred to bank deposits with original maturity over three months for guarantees[77](index=77&type=chunk) [Borrowings and Lease Liabilities](index=20&type=section&id=%E5%80%9F%E6%AC%BE%E5%8F%8A%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of **September 30, 2020**, total borrowings and lease liabilities were approximately **HK$14.4 million**, an increase from the prior period, primarily due to increased bank borrowings, while lease liabilities decreased due to fewer leased properties Borrowings and Lease Liabilities (As at September 30) | Item | 2020 (HK$ Million) | 2019 (HK$ Million) | Change (HK$ Million) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total borrowings and lease liabilities | 14.4 | 7.4 | 7.0 | 94.6% | | Bank borrowings | 12.2 | 3.8 | 8.4 | 221.1% | | Lease liabilities | 2.2 | 3.6 | (1.4) | -38.9% | - The decrease in lease liabilities was mainly attributable to a reduction in the number of leased properties[78](index=78&type=chunk) [Pledge of Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of **September 30, 2020**, the Group pledged bank deposits with a carrying value of approximately **HK$59.7 million** as security for general banking facilities and a car park with a carrying value of approximately **HK$3.0 million** for bank borrowings Pledge of Assets (As at September 30) | Pledged Assets | 2020 (HK$ Million) | 2019 (HK$ Million) | | :--- | :--- | :--- | | Bank deposits | 59.7 | 6.1 | | Car park | 3.0 | — | | Motor vehicles | — | 9.8 | [Gearing Ratio](index=20&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of **September 30, 2020**, the Group's gearing ratio was approximately **17.8%**, an increase from **7.5%** in the prior period, primarily due to increased bank overdrafts and bank borrowings Gearing Ratio (As at September 30) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Gearing ratio | 17.8% | 7.5% | - The increase in gearing ratio was mainly due to increased bank overdrafts and bank borrowings[80](index=80&type=chunk) [Dividends](index=20&type=section&id=%E8%82%A1%E6%81%AF) For the nine months ended September 30, 2020, the Company did not declare or propose any interim dividend - For the nine months ended September 30, **2020**, the Company did not declare or propose any interim dividend[81](index=81&type=chunk) [Commitments](index=20&type=section&id=%E6%89%BF%E6%93%94) As of **September 30, 2020**, the Group had capital commitments of approximately **HK$1.1 million** for contracted but unprovided acquisition of property, plant, and equipment Capital Commitments (As at September 30) | Item | 2020 (HK$ Million) | 2019 (HK$ Million) | | :--- | :--- | :--- | | Capital commitments for acquisition of property, plant and equipment | 1.1 | 0 | [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of **September 30, 2020**, the Group had no significant contingent liabilities - As of **September 30, 2020**, the Group had no significant contingent liabilities[83](index=83&type=chunk) [Foreign Exchange Risk](index=21&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) Operating in Macau, the Group's primary transactions are settled in MOP and HKD, and given the MOP's peg to HKD, the Group perceives no significant foreign exchange risk and undertook no hedging activities during the period - The Group perceives no significant foreign exchange risk due to the MOP's peg to HKD[85](index=85&type=chunk) - No hedging activities were undertaken during the period using foreign exchange contracts, interest rate or currency swaps, or other financial derivative instruments[85](index=85&type=chunk) [Outlook](index=21&type=section&id=%E5%B1%95%E6%9C%9B) The Group aims to consolidate its market position in Macau's tourism industry, achieve sustainable growth by expanding its fleet, collaborating with more hotels, and enhancing sales channels, anticipating gradual business improvement as border restrictions ease - Strategic objectives are to consolidate market position in Macau's tourism industry, generate desirable profits and investment returns, and drive sustainable growth[86](index=86&type=chunk) - Plans include expanding the fleet, collaborating with more hotel operators for mid-to-high-end hotel rooms, and leveraging concert sponsorship to broaden the revenue base[86](index=86&type=chunk) - Intends to open more service points, develop online platform applications, and invest in social media platforms and search engine advertising for digital marketing[87](index=87&type=chunk) - Despite ongoing pandemic impacts, directors anticipate gradual business improvement as borders between China and Macau progressively reopen[87](index=87&type=chunk) - Will continue to review the business environment, implement business strategies, and enforce cost control measures[88](index=88&type=chunk) [Corporate Governance Practices](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Company is committed to maintaining high corporate governance standards, adopting the GEM Listing Rules' Corporate Governance Code, though the combined roles of Chairman and CEO deviate from Code Provision A.2.1 - The Company has adopted the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[90](index=90&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Choi Wai Chun, deviating from Code Provision A.2.1[90](index=90&type=chunk) - The Board believes that Mr. Choi's dual role is in the best interests of the Group[90](index=90&type=chunk) [Competing Business](index=22&type=section&id=%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99) For the nine months ended September 30, 2020, the Directors were unaware of any business or interest of any Director, controlling shareholder, or their close associates that competes with or conflicts with the Group's business - Directors are unaware of any competing business or conflicts of interest involving any Director or controlling shareholder[91](index=91&type=chunk) [Interests of Compliance Adviser](index=22&type=section&id=%E5%90%88%E8%A6%8F%E9%A1%A7%E5%95%8F%E7%9A%84%E6%AC%8A%E7%9B%8A) As of **September 30, 2020**, the compliance adviser or its directors, employees, or close associates held no notifiable interests in the Group's share capital, other than fees for compliance advisory services - The compliance adviser or its associates hold no notifiable interests in the Group's share capital, only fees for compliance advisory services[92](index=92&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=22&type=section&id=%E8%B3%BC%E5%9B%9E%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities - During the review period, neither the Company nor its subsidiaries purchased, sold, or redeemed any shares[93](index=93&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=23&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E5%9C%A8%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of **September 30, 2020**, Executive Director Mr. Choi Wai Chun held **75.0%** of the Company's ordinary shares through Silver Esteem Limited, in which he has a **100%** beneficial interest Directors' Long Positions in Shares (As at September 30, 2020) | Name of Director | Capacity | Number of ordinary shares interested | Percentage of shareholding | | :--- | :--- | :--- | :--- | | Mr. Choi Wai Chun | Interest of controlled corporation | 900,000,000 | 75.0% | Directors' Long Positions in Shares of Associated Corporations (As at September 30, 2020) | Name of Director | Name of Associated Corporation | Capacity | Number of ordinary shares interested | Percentage of shareholding | | :--- | :--- | :--- | :--- | | Mr. Choi Wai Chun | Silver Esteem Limited | Beneficial owner | 1 | 100% | - Mr. Choi Wai Chun is deemed to be interested in all shares held by Silver Esteem Limited[95](index=95&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=24&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E5%9C%A8%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of **September 30, 2020**, substantial shareholder Silver Esteem Limited held **75.0%** of the Company's shares, and Ms. Wong Pui King, Mr. Choi Wai Chun's spouse, was deemed to have an interest in the same shares Substantial Shareholders' Long Positions in Shares (As at September 30, 2020) | Name of Shareholder | Capacity | Number of ordinary shares interested | Percentage of shareholding | | :--- | :--- | :--- | :--- | | Silver Esteem Limited | Beneficial owner | 900,000,000 | 75.0% | | Ms. Wong Pui King | Interest of spouse | 900,000,000 | 75.0% | - Silver Esteem Limited is wholly owned by Mr. Choi Wai Chun, and his spouse, Ms. Wong Pui King, is deemed to be interested in all shares held by it[98](index=98&type=chunk)[99](index=99&type=chunk) [Share Option Scheme](index=24&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a share option scheme on **September 3, 2019**, but no options were granted, agreed to be granted, exercised, cancelled, or lapsed under the scheme during the nine months ended September 30, 2020 - The Company adopted a share option scheme on **September 3, 2019**[100](index=100&type=chunk) - No share options were granted, exercised, cancelled, or lapsed under the scheme during the nine months ended September 30, 2020, and up to the date of this report[100](index=100&type=chunk) [Standard of Dealings by Directors in Securities](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Group has adopted the required standard of dealings as set out in the GEM Listing Rules for directors' securities transactions, with all directors confirming compliance during the nine months ended September 30, 2020 - The Group has adopted the required standard of dealings as set out in Rules 5.48 to 5.67 of the GEM Listing Rules[101](index=101&type=chunk) - All Directors confirmed compliance with the standard of dealings during the review period[101](index=101&type=chunk) [Events After Reporting Period](index=24&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant disclosable events occurred after the reporting period up to the date of this report - No significant disclosable events occurred after the reporting period up to the date of this report[102](index=102&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Company's Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2020, deeming them compliant with applicable accounting standards and GEM Listing Rules - The Audit Committee comprises three independent non-executive Directors, with Mr. Wu Chung Ming as Chairman[103](index=103&type=chunk) - The Audit Committee reviewed the unaudited condensed consolidated financial statements, deeming them compliant with applicable accounting standards, GEM Listing Rules, and adequately disclosed[103](index=103&type=chunk)
瀛海集团(08668) - 2020 - 中期财报
2020-08-10 14:54
Financial Performance - The group recorded unaudited revenue of approximately HKD 15.0 million for the six months ended June 30, 2020, a significant decrease of HKD 77.0 million or 83.7% compared to HKD 92.0 million for the same period in 2019[5]. - The group reported an unaudited loss attributable to owners of the company of approximately HKD 12.6 million for the six months ended June 30, 2020, compared to an unaudited profit of HKD 6.0 million for the same period in 2019[5]. - Basic and diluted loss per share for the six months ended June 30, 2020, was HKD 1.05, compared to earnings of HKD 0.66 per share for the same period in 2019[5]. - The group incurred a total loss before tax of HKD 12,604,000 for the six months ended June 30, 2020, with adjusted loss before interest, tax, depreciation, and amortization amounting to HKD 7,994,000[29]. - The group reported a loss attributable to owners of the company of HKD 7,413,000 for the six months ended June 30, 2020, compared to a profit of HKD 4,452,000 for the same period in 2019[44]. - The group recorded a loss of approximately HKD 12.6 million for the six months ended June 30, 2020, compared to a profit of about HKD 6.0 million for the same period in 2019, driven by decreased revenue and increased administrative expenses[82]. Revenue Breakdown - For the six months ended June 30, 2020, the group reported total segment revenue of HKD 15,046,000, with travel business contributing HKD 13,433,000 and automotive business contributing HKD 1,613,000[29]. - The travel business revenue decreased significantly from HKD 85,662,000 for the six months ended June 30, 2019 to HKD 13,433,000 in the same period of 2020, representing a decline of approximately 84.3%[30]. - The automotive business revenue also saw a decline from HKD 6,296,000 in the six months ended June 30, 2019 to HKD 1,613,000 in 2020, a decrease of about 74.3%[30]. - The group's revenue decreased approximately 83.7% from about HKD 92.0 million for the six months ended June 30, 2019, to about HKD 15.0 million for the six months ended June 30, 2020, primarily due to the impact of the pandemic and travel restrictions imposed by the Macau government[74]. Expenses and Costs - Administrative expenses increased to HKD 15.099 million for the six months ended June 30, 2020, compared to HKD 7.245 million for the same period in 2019[7]. - The cost of sales dropped approximately 81.7%, from about HKD 72.6 million to HKD 13.3 million, attributed to the decline in hotel room sales and car rental services[75]. - Gross profit fell approximately 91.2%, from about HKD 19.4 million to HKD 1.7 million, mainly due to reduced revenue from hotel room sales and car rental services[76]. - Other income and gains rose from approximately HKD 422,000 to about HKD 860,000, mainly due to one-time government subsidies received during the period[77]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 86.378 million as of June 30, 2020, down from HKD 98.975 million as of December 31, 2019[10]. - The group's non-current assets were valued at HKD 18.615 million as of June 30, 2020, compared to HKD 20.671 million as of December 31, 2019[10]. - The total equity attributable to owners of the company was HKD 85.531 million as of June 30, 2020, compared to HKD 98.242 million as of December 31, 2019[10]. - The total borrowings and lease liabilities as of June 30, 2020, amounted to approximately HKD 7.6 million, an increase from approximately HKD 6.2 million on June 30, 2019[100]. Cash Flow - Cash flow from operating activities was negative at HKD 6,788,000 for the six months ended June 30, 2020, compared to positive cash flow of HKD 5,478,000 in 2019[20]. - The company’s cash and cash equivalents decreased by HKD 11,578,000, resulting in a closing balance of HKD 768,000[20]. - The company’s bank overdraft increased to HKD 4,879,000 as of June 30, 2020[20]. - The company’s cash and bank balances were HKD 4.111 million as of June 30, 2020, down from HKD 10.909 million as of December 31, 2019[10]. Dividends - The board of directors decided not to recommend the payment of an interim dividend for the six months ended June 30, 2020[6]. - The company declared dividends amounting to HKD 8,891,000 during the reporting period[11]. - The company did not declare or propose any interim dividends for the six months ended June 30, 2020, compared to an interim dividend of approximately HKD 8,891,000 declared in April 2019[49]. Government Support - The group recognized government subsidies amounting to HKD 560,000 for the six months ended June 30, 2020, which was not present in the previous year[36]. Future Outlook - The company anticipates a gradual recovery in its tourism business as the Macau government eases travel restrictions between China and Macau[71]. - The company plans to expand its fleet by acquiring additional vehicles and hiring more drivers to meet the growing demand for multi-purpose car rental services in Macau[111]. - The company aims to establish hotel room guarantee agreements with more hotel operators to increase the number of hotel rooms available and attract business travelers[111]. - The company intends to invest in digital marketing through social media and search engine advertising to enhance online sales channels[112]. - The company will continue to explore new hotel business opportunities under attractive conditions to capitalize on market rebound once conditions improve[113]. Shareholder Information - As of June 30, 2020, Mr. Cai Weizhen holds 900,000,000 shares, representing 75.0% of the company's total shares[119]. - Silver Esteem Limited, wholly owned by Mr. Cai Weizhen, is the beneficial owner of 900,000,000 shares, accounting for 75.0% of the total shares[123]. - Ms. Wang Peiqiong, as the spouse of Mr. Cai Weizhen, is also deemed to have an interest in 900,000,000 shares, which is 75.0% of the total shares[124]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2020[128].
瀛海集团(08668) - 2020 Q1 - 季度财报
2020-05-11 13:08
Financial Performance - The group recorded unaudited revenue of approximately HKD 14.9 million for the three months ended March 31, 2020, a significant decrease of approximately HKD 32.3 million or 68.4% compared to HKD 47.2 million for the same period in 2019[5] - The group reported an unaudited loss attributable to owners of the company of approximately HKD 5.2 million for the three months ended March 31, 2020, compared to an unaudited profit of approximately HKD 1.5 million for the same period in 2019[5] - The basic and diluted loss per share attributable to owners of the company was HKD 0.58 for the three months ended March 31, 2020, compared to a profit of HKD 0.17 for the same period in 2019[5] - The gross profit for the three months ended March 31, 2020, was HKD 1.68 million, down from HKD 10.55 million in the same period of 2019[7] - The total comprehensive loss for the period was HKD 5.26 million for the three months ended March 31, 2020, compared to a total comprehensive income of HKD 1.58 million for the same period in 2019[7] - The group's revenue for the three months ended March 31, 2020, was HKD 14,871,000, a decrease of 68.5% compared to HKD 47,196,000 for the same period in 2019[16] - The tourism segment generated revenue of HKD 13,423,000, down 69.5% from HKD 43,849,000 in the previous year[21] - The automotive segment reported revenue of HKD 1,448,000, a decline of 56.7% from HKD 3,347,000 in the same quarter of 2019[21] - The group recorded a total loss before tax of HKD 5,191,000 for the three months ended March 31, 2020, compared to a profit of HKD 1,822,000 in the same period of 2019[21] - Adjusted EBITDA loss for the group was HKD 2,799,000 for the current quarter, compared to a profit of HKD 3,389,000 in the previous year[21] Expenses and Costs - Administrative expenses increased to HKD 6.91 million for the three months ended March 31, 2020, compared to HKD 3.58 million for the same period in 2019[7] - Other income and gains decreased to HKD 62,000 for the three months ended March 31, 2020, from HKD 381,000 in the same period of 2019[7] - The cost of sales decreased by approximately 63.9%, from about HKD 36.6 million to about HKD 13.2 million for the same periods[37] - Gross profit for the three months ended March 31, 2020, was approximately HKD 1.7 million, a decrease of about 83.8% from approximately HKD 10.5 million for the same period in 2019[38] - Administrative expenses increased by approximately 97.1%, from about HKD 3.6 million to about HKD 6.9 million, primarily due to increased employee benefits, depreciation, and professional fees[40] Dividends and Shareholder Information - The board of directors decided not to recommend the payment of an interim dividend for the three months ended March 31, 2020[6] - The company did not declare or propose any dividends for the three months ended March 31, 2020, consistent with the same period in 2019[33] - As of March 31, 2020, Mr. Cai Weizhen holds 900,000,000 shares, representing 75.0% of the company's total shares[67] - Silver Esteem Limited, owned by Mr. Cai Weizhen, also holds 900,000,000 shares, accounting for 75.0% of the company's shares[69] - No stock options were granted, exercised, cancelled, or lapsed during the three months ended March 31, 2020[72] Corporate Governance and Audit - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[75] - The group did not apply any new accounting standards that have been issued but are not yet effective as of March 31, 2020[15] - The group’s financial statements for the quarter were reviewed by the audit committee but not yet audited by external auditors[15] - The board believes that maintaining high standards of corporate governance is essential for transparency and accountability to shareholders[62] Future Plans and Market Strategy - The group plans to expand its fleet by purchasing additional vehicles and hiring more drivers to meet the growing demand for multi-purpose vehicle rental services in Macau[58] - The group aims to establish more partnerships with hotel operators and travel agents to secure mid-to-high-end hotel room guarantees, thereby increasing its market share[58] - The group intends to invest in digital marketing through social media and search engine advertising to enhance its online sales platform and increase product visibility[59] - The group will continue to explore new hotel operations to capitalize on market rebound opportunities once conditions improve[60] Cash and Capital Structure - As of March 31, 2020, the group's cash and cash equivalents were approximately HKD 6.4 million, a decrease of about 64.4% from approximately HKD 18.0 million as of March 31, 2019[49] - The group's bank deposits with original maturities over three months were approximately HKD 59.7 million as of March 31, 2020, compared to approximately HKD 4.5 million as of March 31, 2019, primarily pledged as collateral for bank financing[51] - The group's debt-to-asset ratio was approximately 3.0% as of March 31, 2020, down from approximately 14.9% as of March 31, 2019, due to the repayment of bank loans[52] - The group had capital commitments for the acquisition of properties, plants, and equipment amounting to approximately HKD 1.1 million as of March 31, 2020, compared to zero as of March 31, 2019[54] Market Impact - The group's business and financial performance were significantly adversely affected by the pandemic and travel restrictions imposed by the Macau government[60] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the three months ended March 31, 2020[46] - The company did not hold any significant investments as of March 31, 2020[47] - The capital structure of the company has not undergone significant changes since the IPO[48] - There were no significant post-reporting date events or major developments affecting the group until the report date[74]
瀛海集团(08668) - 2019 - 年度财报
2020-03-16 22:13
Financial Performance - The company reported total revenue of HKD 180,241,000 for the year ended December 31, 2019, an increase of 8.99% from HKD 165,662,000 in 2018[13] - The company incurred a loss before tax of HKD 921,000, compared to a profit of HKD 18,863,000 in the previous year[13] - The total comprehensive loss attributable to owners of the company was HKD 1,066,000, down from a profit of HKD 16,276,000 in 2018[13] - The group's revenue increased by approximately 8.8% from about HKD 165.7 million for the year ended December 31, 2018, to about HKD 180.2 million for the year ended December 31, 2019[18] - Gross profit for the year ended December 31, 2019, was approximately HKD 36.3 million, an increase of about 4.6% from approximately HKD 34.7 million in 2018, with gross margin remaining relatively stable at about 20.9% and 20.1% respectively[22] - The cost of sales rose by approximately 9.9%, from about HKD 131.0 million in 2018 to about HKD 143.9 million in 2019, primarily due to increased revenue from hotel room sales and distribution[19] - The group recorded a loss of approximately HKD 1.1 million for the year ended December 31, 2019, compared to a profit of about HKD 16.3 million in 2018, largely due to non-recurring listing expenses and increased administrative costs[26] Assets and Equity - Total assets increased to HKD 119,314,000 in 2019 from HKD 66,505,000 in 2018, representing a growth of 79.4%[14] - Total equity rose to HKD 98,242,000 in 2019, up from HKD 45,957,000 in 2018, marking an increase of 114%[14] Business Strategy and Expansion - The company aims to strengthen its existing business and provide stable returns and growth prospects for shareholders in the future[9] - The company plans to expand its services, including cross-border car rental services between Macau and Hong Kong starting December 2019[16] - The company aims to establish hotel room guarantee agreements with more hotel operators to increase the number of mid-to-high-end hotel rooms and expand its hotel base, thereby attracting business travelers and high-spending customers[56] - The company intends to open more service points and develop an online platform application to market its travel products and services to corporate and retail customers[57] - The company will invest in digital marketing through social media platforms and search engine advertising to enhance its online sales channels[57] Risks and Challenges - The overall revenue of the Macau tourism industry has slowed down due to economic uncertainties in China, Hong Kong, and the impact of social unrest[15] - The company acknowledges potential risks to its business and financial performance due to escalating trade tensions between China and the US, the outbreak of COVID-19, and social unrest in Hong Kong[58] - The group faces risks in executing its business strategy, including challenges in finding attractive hotel operators for partnerships and timing market entry effectively[30] Corporate Governance - The company has adopted the corporate governance code as outlined in the GEM listing rules, ensuring high levels of transparency and accountability[81] - The board consists of two executive directors and three independent non-executive directors, maintaining a balance of power[83] - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, to oversee governance responsibilities[90] - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements, as well as corporate governance policies[85] - The company emphasizes the importance of ongoing professional development and training for its directors and senior management[85] Financial Management - The company aims to manage cash prudently to seize future growth opportunities[49] - The company has no significant credit concentration risk and will continue to monitor such credit risks[54] - The company has established a risk management and internal control system that includes risk identification, assessment, management, and review[124] Employee and Stakeholder Relations - The group had 91 employees, an increase from 66 employees as of December 31, 2018[156] - The company has established a fair compensation policy for employees, ensuring equal opportunities for promotion, assessment, training, and development[194] - The company maintains good relationships with stakeholders, emphasizing the importance of customer and business partner satisfaction for sustainable development[193] Environmental and Social Responsibility - The group has established a rigorous environmental management system to promote environmental awareness among employees[149] - The group has complied with relevant environmental laws and regulations in all significant aspects as of December 31, 2019[149] - An independent environmental, social, and governance report is expected to be published within three months after the annual report[160] Shareholder Information - The company has established various communication channels with shareholders, including annual general meetings and other shareholder meetings[135] - The company did not recommend the payment of a final dividend for the year ended December 31, 2019, consistent with the previous year where no dividend was declared[147] - The company has confirmed compliance with a non-competition agreement by its controlling shareholders, ensuring adherence to commitments made[122]
瀛海集团(08668) - 2019 Q3 - 季度财报
2019-11-11 10:34
Financial Performance - For the nine months ended September 30, 2019, the group recorded unaudited revenue of approximately HKD 137.0 million, an increase of about 13.6% compared to HKD 120.6 million for the same period in 2018[4] - The group reported an unaudited loss attributable to owners of the company of approximately HKD 0.7 million for the nine months ended September 30, 2019, compared to a profit of HKD 11.3 million for the same period in 2018[4] - Basic and diluted loss per share for the nine months ended September 30, 2019, was HKD 0.08, compared to earnings of HKD 1.26 per share for the same period in 2018[4] - For the three months ended September 30, 2019, the group recorded revenue of HKD 45.0 million, compared to HKD 42.1 million for the same period in 2018, reflecting an increase[5] - The gross profit for the nine months ended September 30, 2019, was HKD 27.96 million, compared to HKD 25.21 million for the same period in 2018[5] - The total comprehensive loss for the nine months ended September 30, 2019, was HKD 857,000, compared to a total comprehensive income of HKD 11.07 million for the same period in 2018[5] - The travel business generated revenue of HKD 127,719,000 for the nine months ended September 30, 2019, compared to HKD 114,304,000 in the same period of 2018, reflecting a year-on-year increase of 11.8%[19] - The car rental services segment reported revenue of HKD 9,278,000 for the nine months ended September 30, 2019, up from HKD 6,296,000 in the previous year, marking a growth of 47.5%[19] - The adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the travel business was HKD 19,058,000, while for the car rental business it was HKD 4,642,000, contributing to a total adjusted EBITDA of HKD 5,049,000[19] - The company reported a pre-tax loss of HKD 328,000 for the nine months ended September 30, 2019, compared to a profit of HKD 13,035,000 in the same period of 2018[19] - The total comprehensive income for the nine months ended September 30, 2019, was HKD 451,000, a notable increase from HKD 7,000 in the same period of 2018[22] Expenses and Costs - Administrative expenses increased to HKD 11.7 million for the nine months ended September 30, 2019, compared to HKD 7.66 million for the same period in 2018[5] - Sales cost for the nine months ended September 30, 2019, was approximately HKD 109.0 million, an increase of about 14.3% compared to HKD 95.4 million for the same period in 2018[34] - Administrative expenses rose by approximately 52.0% from HKD 7.7 million to HKD 11.7 million, mainly due to increased staffing for the IPO preparations[37] - The company incurred listing expenses of HKD 16,868,000 for the nine months ended September 30, 2019, compared to HKD 4,509,000 for the same period in 2018[24] - Financing costs surged from approximately HKD 10,000 to HKD 163,000, attributed to new secured bank loans of approximately HKD 4.5 million[39] Equity and Dividends - The company’s total equity as of September 30, 2019, was HKD 98.52 million, an increase from HKD 45.97 million as of January 1, 2019[8] - The company declared dividends amounting to HKD 8.89 million during the reporting period[8] - The company declared an interim dividend of approximately HKD 8,891,000 on April 30, 2019[31] Market Strategy and Future Plans - The group plans to continue exploring market expansion opportunities and new product development strategies in the upcoming quarters[4] - The company aims to strengthen its market position in the Macau tourism industry and drive sustainable growth[32] - The company plans to expand its fleet by acquiring additional vehicles and hiring more drivers to meet the growing demand for multi-purpose car rental services in Macau[54] - The company aims to establish more hotel room guarantee agreements with hotel operators to increase the number of mid-range hotel rooms and expand its hotel base, thereby attracting business travelers and high-spending customers[54] - The company intends to open more service points and develop an online platform application to market its travel products and services to corporate and retail customers[55] - The company plans to invest in digital marketing through social media platforms and search engine advertising to enhance its online presence and drive online inquiries for its products and services[55] - The company is strategically seeking partnerships with more hotel operators and travel agents to enhance its market share[54] Corporate Governance - The company is committed to maintaining high standards of corporate governance to ensure transparency and protect shareholder interests[57] - The company is focused on consolidating its existing business development while providing stable returns and growth prospects for its shareholders[56] - The audit committee was established in accordance with GEM Listing Rules and consists of three independent non-executive directors[71] - The audit committee reviewed the condensed consolidated financial statements for the nine months ended September 30, 2019[71] Shareholder Information - As of September 30, 2019, the company’s major shareholder, Mr. Cai Weizhen, holds 900,000,000 shares, representing 75.0% of the total shares[62] - The company has adopted a share option scheme on March 3, 2019, to incentivize employees and align their interests with shareholders[67] - The company has not repurchased, sold, or redeemed any of its ordinary shares from the date of listing until September 30, 2019[61] - No stock options were granted, exercised, canceled, or expired as of September 30, 2019[68] - All directors confirmed compliance with the trading standards from the listing date to September 30, 2019[69] Financial Position - Cash and cash equivalents increased by approximately 224.1% to about HKD 44.4 million from HKD 13.7 million in 2018, mainly due to net proceeds from the IPO[46] - Total borrowings as of September 30, 2019, amounted to approximately HKD 7.4 million, a significant increase from HKD 0.5 million in 2018[47] - The debt-to-equity ratio as of September 30, 2019, was approximately 7.5%, up from 1.2% in 2018, mainly due to the recognition of lease liabilities and new secured bank loans[49] - The company had no significant capital commitments or contingent liabilities as of September 30, 2019[50][51] Accounting and Compliance - The company has not applied new accounting standards that have been issued but are not yet effective as of September 30, 2019[12] - The company had no taxable profits sourced from Hong Kong, thus no provision for Hong Kong profits tax was made[26] - The estimated interest on unsecured loans was HKD 0 for the nine months ended September 30, 2019, compared to HKD 10,000 for the same period in 2018[23] - Interest income for the nine months ended September 30, 2019, was HKD 36,000, compared to HKD 6,000 in the same period of 2018, indicating a significant increase[22] - The interest on lease liabilities for the nine months ended September 30, 2019, was HKD 70,000, while there was no such expense in the same period of 2018[23] - Depreciation of property, plant, and equipment increased from HKD 2,402,000 for the nine months ended September 30, 2018, to HKD 3,502,000 for the same period in 2019[24] Events After Reporting Period - No significant events occurred after September 30, 2019, up to the report date[70]