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].
东瀛游(06882) - 2018 - 年度财报