Financial Performance - The Group recorded total revenue of approximately HK$17.6 million for the six months ended June 30, 2021, a significant decrease of 92.5% compared to HK$236.4 million for the same period in 2020[19]. - The gross loss for the period was approximately HK$19.1 million, representing a change of -219.6% from a gross profit of HK$16 million in the prior year[19]. - Loss attributable to owners of the Company was approximately HK$69.1 million, compared to a loss of HK$66.2 million in the same period last year, reflecting a 4.4% increase in loss[19]. - Basic and diluted loss per share was HK(13.75) cents, compared to HK(13.17) cents in the previous year[17]. - The Group's total comprehensive loss for the period was HK$89,863,000, compared to a total comprehensive loss of HK$66,347,000 in the previous year[170]. - The Group's gross profit margin for the six months ended June 30, 2021, was –108.2%, compared to 6.7% in 2020[59]. - The return on total assets was -7.4% for the period, compared to -6.9% for the six months ended June 30, 2020, indicating a decline due to significant losses incurred[82]. - The return on equity attributable to owners of the company was -33.4%, down from -23.3% for the same period in the previous year, reflecting a decrease in equity of approximately HK$46.0 million[82]. Revenue Breakdown - Revenue from package tours was approximately HK$3.3 million, a decrease of 98.4% from HK$213.2 million in the previous year, contributing 19.0% to the Group's total revenue[51]. - Revenue from FIT products and ancillary travel services was approximately HK$1.998 million, with a gross profit margin of 78.1%[48]. - Revenue from merchandise sales was approximately HK$6.71 million, with a gross profit margin of 23.2%[48]. - Hotel operations reported revenue of HK$5.57 million, resulting in a gross loss of HK$22.51 million, reflecting a gross profit margin of -404.1%[48]. - Revenue from FIT Products and ancillary travel related products decreased to approximately HK$2.0 million, representing a decrease of 84.6% compared to HK$13.0 million in the six months ended June 30, 2020[54]. - Revenue from merchandise sales, including the "EGL Market" online shopping platform, amounted to approximately HK$6.7 million, an increase of 209.8% compared to HK$2.2 million in the six months ended June 30, 2020[54]. - Hotel operation revenue decreased to approximately HK$5.6 million, a decline of 30.8% from HK$8.1 million in the six months ended June 30, 2020[56]. COVID-19 Impact - The ongoing impact of the COVID-19 pandemic has resulted in the Group's business being in a near-zero revenue state since mid-March 2020[19]. - The Group's financial performance is significantly affected by the ongoing COVID-19 pandemic, especially due to recent infection cases in Japan[185]. - The Group's travel and hotel operations were halted due to the COVID-19 pandemic, adversely impacting revenue and financial performance for the six months ended June 30, 2021[198][200]. - The COVID-19 pandemic continues to have a profound negative impact on the Group's financial performance, particularly in Japan[189]. - The exact impact of the COVID-19 pandemic on the Group's performance in the second half of 2021 and beyond remains unpredictable[98]. Cost Control and Management Strategies - The Group continues to implement cost control measures, including human resource restructuring and seeking rent concessions, to improve operating cash flows[42]. - The management of the Group is implementing various cost control measures to improve operating cash flows, including workforce restructuring and salary reductions[191]. - The Company continues to monitor market conditions and may adjust its strategies accordingly in response to the ongoing challenges[19]. - The Group is actively encouraging employees to get vaccinated against COVID-19, offering cash allowances and paid leaves as incentives[34]. - The Group intends to finance future capital expenditures through internal resources, indicating a focus on self-sustainability[89]. Financial Position and Ratios - The gearing ratio increased to 68.2% from 64.2% year-on-year, indicating a rise in total borrowings over total assets[17]. - Net debts over equity ratio rose to 284.0% from 252.3% in the previous year, highlighting increased financial leverage[17]. - The current ratio improved to 1.6 times as of June 30, 2021, compared to 0.7 times as of December 31, 2020[59]. - Total borrowings over total assets increased to 68.2% as of June 30, 2021, up from 64.2% as of December 31, 2020[59]. - The total assets decreased by HK$119.2 million to HK$934.3 million as of June 30, 2021, compared to HK$1,053.5 million as of December 31, 2020[79]. - The total equity attributable to owners of the company decreased to HK$206,632,000 as of June 30, 2021, down from HK$252,583,000 at the end of 2020, reflecting a decrease of about 18.2%[176]. Employee and Workforce Management - As of June 30, 2021, the Group had a total workforce of 293 employees, down from 482 as of December 31, 2020, with 32 full-time escort guides[94]. - Due to the adverse impact of the COVID-19 pandemic, the Group implemented no-pay leaves and salary reductions for employees[95]. - The Group provides a series of employee training programs to accelerate professional growth and identify talents[95]. Shareholder Information - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021, consistent with the interim dividend for 2020, which was nil[143]. - No share options were granted, cancelled, lapsed, or exercised during the reporting period[95]. - The total number of shares available for issue under the Share Option Scheme was 50,000,000 shares, accounting for approximately 9.95% of the issued share capital of the Company as of the interim report date[143].
东瀛游(06882) - 2021 - 中期财报