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].
东瀛游(06882) - 2019 - 中期财报