Financial Performance - The Group recorded total revenue of approximately HK$249.8 million for the year ended December 31, 2020, representing a decrease of 85.5% compared to HK$1,728.3 million in 2019[31]. - The gross profit margin for the year was approximately 12.1%, down from 18.1% in 2019[31]. - Loss attributable to owners of the Company was approximately HK$108.8 million, compared to a profit of approximately HK$14.0 million in 2019[31]. - Basic loss per share for 2020 was HK21.65 cents, a decline from basic earnings per share of HK2.79 cents in 2019[57]. - Total package tours revenue was HK$216.2 million in 2020, a significant drop from HK$1,467.7 million in 2019, with a gross profit margin of 6.3%[61]. - FIT Products and ancillary travel-related products generated revenue of HK$24.1 million in 2020, with a gross profit margin of 49.3%[61]. - Hotel operations revenue was HK$9.4 million in 2020, with a gross profit margin of 51.8%[61]. - Total revenue decreased to approximately HK$137.0 million in 2020, down 84.8% from HK$900.7 million in 2019[63]. - Revenue from non-Japan-bound package tours decreased to approximately HK$79.2 million, a decline of 86.0% from HK$567.0 million in 2019[64]. - The hotel room occupancy rate fell to 8.0% in 2020 from 69.3% in 2019[64]. - The Group's income tax credit for the year amounted to approximately HK$39.9 million, a significant increase from HK$2.9 million in 2019, driven by a decrease in income tax expense and an increase in deferred tax credit[80]. - The interest coverage ratio fell to –20.4 times in 2020 from 2.7 times in 2019, reflecting a shift from profit to loss due to decreased revenue and gross profit[80]. - Total assets decreased to HK$1,053.5 million in 2020 from HK$1,091.9 million in 2019, reflecting a decline of HK$38.4 million[84]. - Shareholders' equity decreased to HK$252.6 million in 2020 from HK$350.6 million in 2019, a reduction of HK$97.9 million[88]. - The gearing ratio rose to 64.2% in 2020, up from 34.1% in 2019, indicating a higher level of financial leverage[85]. - The return on total assets and return on equity attributable to owners of the company were –10.3% and –43.1% respectively, a significant decrease from 1.3% and 4.0% in 2019, primarily due to a loss in 2020[93]. - The current ratio was 0.7 times, down from 1.1 times in 2019, mainly due to increased loans from a related company and decreased cash and cash equivalents[80]. Impact of COVID-19 - The COVID-19 pandemic severely impacted the tourism industry, leading to almost no revenue for several months due to lockdown policies[30]. - The significant financial loss was inevitable due to the ongoing pandemic and its effects on operations[30]. - The Group implemented several cost-saving measures and benefited from relief support from the Anti-epidemic Fund[30]. - The Group implemented multiple cost-saving measures, including salary reductions for directors and no-pay leaves for employees, to maintain cash resources during the COVID-19 pandemic[35]. - Future outlook remains uncertain due to the ongoing impact of COVID-19 on the tourism sector[30]. - The Group remains optimistic about recovery post-pandemic, aiming to resume operations and provide pleasant trips for customers[47]. Community Engagement and Corporate Social Responsibility - The Group distributed 30,000 masks to the public in February 2020, demonstrating its commitment to community health during the pandemic[41]. - The Group's "EGL Caring Society Team" was established to organize charitable events and promote community development, reflecting its corporate social responsibility[37]. - The Group received the "Partner Employer Award" for its efforts in caring for the underprivileged and promoting social harmony[37]. - The Group's charitable donations during the year amounted to approximately HK$20,000, a decrease from HK$154,000 in 2019[190]. Business Strategy and Future Outlook - The company is focused on recovery strategies as the pandemic situation evolves[30]. - The Group launched the "EGL Market" online shopping platform, offering over 500 global souvenir products, including snacks and household items, to adapt to the online shopping trend[35]. - The Group aims to develop a sustainable "travel + living" ecosystem through its new online platform, enhancing customer experience and business growth[35]. - The management discussion and analysis section provides further details on business performance[31]. - The management anticipates a positive outlook for the upcoming year, supported by strategic initiatives and market trends[148]. Operational Changes and Cost Management - The Group's energy-saving measures during the pandemic included reducing the number of light tubes in offices and reusing stationery, contributing to cost savings and resource conservation[41]. - Selling expenses decreased to approximately HK$38.6 million in 2020, down 53.8% from HK$83.7 million in 2019[75]. - Administrative expenses decreased to approximately HK$147.7 million in 2020, down 31.8% from HK$216.7 million in 2019, primarily due to reduced business volume and cost-saving measures[78]. - The Group implemented various cost-saving measures and received subsidies from the Hong Kong Government to mitigate the impact of the pandemic[54]. Market and Competitive Landscape - The Group's revenue is primarily derived from travel-related products and services in Hong Kong and Macau, making it vulnerable to economic downturns in these regions[151]. - The Group's hotel operations in Osaka and Okinawa face competition from existing and future accommodation options, impacting room rates and service quality[156]. - Any adverse changes in Japan's economic, social, or political conditions could negatively affect customer demand for the Group's travel-related products and services[155]. - The Group's operations may be significantly affected by natural disasters, terrorism, or outbreaks of contagious diseases, which can impact customer sentiment and demand[151]. Compliance and Governance - The Group's compliance with relevant laws and regulations has been affirmed by the Board, ensuring adherence to significant legal requirements[160]. - The "Environmental, Social and Governance Report" will be published within three months following the annual report, reflecting the Group's commitment to transparency[160]. - The Company has in force indemnity provisions for the benefit of Directors, including former Directors, as permitted under relevant statutes[197].
东瀛游(06882) - 2020 - 年度财报