Financial Performance - Revenue for the six months ended June 30, 2020, was HK$236,417,000, a decrease of 72.1% compared to HK$847,840,000 in the same period of 2019[12]. - Gross profit for the same period was HK$34,771,000, down 77.9% from HK$157,345,000 year-on-year[12]. - The loss attributable to owners of the Company was HK$66,169,000, compared to a profit of HK$6,898,000 in the previous year, representing a change of -1,059.2%[12]. - Basic and diluted loss per share was HK(13.17) cents, compared to earnings of HK1.37 cents per share in the prior year[12]. - The net profit margin was -31.9%, compared to 1.1% in the same period last year[12]. - Total revenue for the first half of 2020 was approximately HK$236.4 million, a decrease of 72.1% from HK$847.8 million in the same period of 2019[44]. - The overall gross profit for the first half of 2020 was approximately HK$34.8 million, a decrease of 78.0% from HK$157.3 million in the same period of 2019[44]. - For the six months ended June 30, 2020, the Group recorded a loss of approximately HK$66,467,000 compared to a profit of HK$7,206,000 in the same period of 2019[157]. Cost Management - The Group implemented multiple cost-saving measures, including closing the Tuen Mun branch and terminating the lease of the Yuen Long branch[20]. - Executive Directors voluntarily reduced their salaries, and no-pay leaves were arranged for employees to sustain financial resources[20]. - Selling expenses decreased by 32.9% to approximately HK$28.3 million from HK$42.2 million in the same period last year[56]. - Administrative expenses reduced by 23.4% to approximately HK$83.2 million from HK$108.5 million year-on-year[56]. - The Group has implemented various cost control measures to improve operating cash flows, including voluntary salary reductions and closures of under-performing branches[181]. Market and Strategic Outlook - The Company is focusing on new strategies for market expansion and product development to recover from the current financial downturn[12]. - Future outlook remains cautious due to ongoing market uncertainties and the impact of external factors on business operations[12]. - The Group developed an online shopping platform to generate new income streams amid the stagnation of travel and hotel operations[41]. - The Group's management expressed confidence in recovering and resuming operations once the pandemic abates[35]. Impact of COVID-19 - The outbreak of COVID-19 led to the cancellation and/or postponement of travel-related products and services, particularly to Japan since 9 March 2020[177]. - The Group's travel and hotel operations were halted due to the COVID-19 pandemic, adversely impacting revenue and financial results for the six months ended 30 June 2020[188]. - The pandemic has led to a significant adverse impact on the Group's overall financial performance for the first half of 2020[188]. - The Group applied for various government support programs, receiving approximately HK$12,025,000 under the "Employment Support Scheme" to retain employees during the pandemic[193]. Financial Position and Ratios - The gearing ratio increased to 46.4% from 34.1% as of December 31, 2019[12]. - Current liabilities exceeded current assets by approximately HK$33,191,000 as of June 30, 2020, raising concerns about the Group's ability to continue as a going concern[153]. - The interest coverage ratio dropped to –40.9 times from 5.8 times[53]. - The current ratio decreased to 0.9 times from 1.1 times[53]. - The company's net assets decreased to HK$286,674,000 from HK$353,021,000, indicating a decline of approximately 18.7%[162]. Shareholder Information - As of June 30, 2020, Evergloss held 374,330,000 shares of the Company, representing approximately 74.50% of the issued share capital[114][116]. - The Company has established discretionary trusts for family members, indicating a structured approach to shareholding and management[118]. - There were no share options granted, exercised, cancelled, or lapsed during the six months ended June 30, 2020, under the Share Option Scheme[131]. Government Support and Grants - The Group received rent concessions from lessors amounting to approximately HK$1,280,000, which resulted in a reduction of total lease liabilities[193]. - Approximately HK$3,892,000 of government grants were recognized in profit or loss for June 2020, with conditions to use the subsidies for employee wages[193]. - The Group is in the process of applying for employment adjustment subsidies from the Japanese government, with applications still ongoing as of the report date[195].
东瀛游(06882) - 2020 - 中期财报