Financial Performance - The company recorded a loss for the nine months ended December 31, 2018, compared to a profit for the same period in 2017, primarily due to a fair value loss of approximately HKD 2.7 million from its investment in Gad Holdings Limited [10]. - The group reported a total comprehensive loss of approximately HKD 21.9 million for the nine months ended December 31, 2018, compared to a profit of approximately HKD 1.5 million for the same period in 2017 [18]. - For the nine months ended December 31, 2018, the company reported total revenue of HKD 255,041,000, a decrease of 22.8% compared to HKD 330,567,000 for the same period in 2017 [40]. - The gross profit for the same period was HKD 22,702,000, down 52.5% from HKD 47,673,000 in the previous year [40]. - The company incurred an operating loss of HKD 22,447,000 for the nine months ended December 31, 2018, compared to an operating profit of HKD 2,170,000 in the same period of 2017 [40]. - The net loss attributable to the owners of the company for the nine months was HKD 21,706,000, compared to a profit of HKD 1,457,000 in the prior year [40]. - The basic and diluted loss per share for the nine months was HKD (5.43), compared to earnings of HKD 0.36 per share in the same period of 2017 [40]. - The company’s total comprehensive loss for the nine months was HKD 21,892,000, compared to a total comprehensive income of HKD 1,460,000 in the same period of 2017 [40]. - Total revenue for the nine months ended December 31, 2018, was HKD 255,041,000, a decrease of 22.8% compared to HKD 330,567,000 for the same period in 2017 [49]. - Revenue from tour sales for the nine months ended December 31, 2018, was HKD 251,374,000, down 22.5% from HKD 324,533,000 in 2017 [49]. Revenue and Sales - The group's travel agency sales revenue decreased by 22.6% from approximately HKD 324.5 million for the nine months ended December 31, 2017, to approximately HKD 251.3 million for the same period in 2018 [13]. - Revenue from free travel products fell from approximately HKD 1.5 million to approximately HKD 0.5 million, attributed to intense competition from online agents and budget airlines [14]. - Revenue from travel-related products and services decreased from approximately HKD 4.6 million to approximately HKD 3.2 million, primarily due to reduced income from travel insurance sales [15]. Expenses and Costs - The gross profit margin for travel agency services dropped from 12.8% to 7.6% due to decreased selling prices and increased operational costs [13]. - Total expenses for the nine months ended December 31, 2018, were HKD 276,800,000, a decrease of 15.7% from HKD 328,353,000 in 2017 [51]. - Sales expenses decreased by 7.2% from approximately HKD 13.8 million to approximately HKD 12.8 million, mainly due to the termination of a branch lease and reduced advertising costs [16]. - The group incurred a foreign exchange loss of HKD (970,000) for the nine months ended December 31, 2018, compared to a loss of HKD (116,000) in 2017 [50]. Business Strategy and Future Plans - The group plans to expand its business scope into travel and travel technology through investments in startups, aiming to enhance future profitability [11]. - The company aims to expand its business scope into travel and travel technology, leveraging its experience in the travel agency sector and partnerships with suppliers to enhance future profitability [20]. - The company is committed to seeking investment opportunities that create operational synergies, expand revenue sources, and enhance shareholder value [20]. - Marketing efforts will include digital marketing strategies to increase online visibility and traffic, as well as traditional media advertising to boost brand recognition [22]. - The company plans to continuously evaluate and optimize its online sales platform to improve user experience and customer loyalty [22]. - New routes, itineraries, events, and hotel accommodations will be launched to provide customers with enhanced travel experiences [22]. Corporate Governance - As of December 31, 2018, major shareholders hold 300,000,000 shares, representing 75% ownership in the company [24]. - The company has adhered to all corporate governance codes as of December 31, 2018 [31]. - All directors confirmed compliance with the trading standards and conduct codes for securities transactions during the nine months ending December 31, 2018 [32]. - No purchases, sales, or redemptions of the company's listed securities occurred during the nine months ending December 31, 2018 [33]. - The company’s compliance advisor is Lico Corporate Finance Limited, which provides guidance on compliance with GEM Listing Rules [35]. - The audit committee, established in December 2016, reviewed the unaudited financial results for the nine months ended December 31, 2018 [38]. Management and Compensation - Management compensation for the nine months ended December 31, 2018, totaled HKD 5,090 thousand, an increase from HKD 4,977 thousand in the same period of 2017 [65]. - The total remuneration for key management personnel increased slightly to HKD 1,659 thousand for the three months ended December 31, 2018, compared to HKD 1,645 thousand in 2017 [65]. - The company reported no significant contingent liabilities as of December 31, 2018, consistent with the previous year [66].
飞道旅游科技(08069) - 2019 Q3 - 季度财报