Financial Performance - The company's loss before tax decreased significantly by 57.5% from approximately HKD 25.2 million for the nine months ended December 31, 2018, to approximately HKD 10.7 million for the nine months ended December 31, 2019[9]. - Gross profit increased by 33.5% from approximately HKD 22.7 million for the nine months ended December 31, 2018, to approximately HKD 30.3 million for the nine months ended December 31, 2019[10]. - The group's loss for the nine months ended December 31, 2019, decreased to approximately HKD 10.7 million from approximately HKD 21.9 million for the same period in 2018, attributed to increased gross profit and reduced selling expenses[17]. - Revenue for the nine months ended December 31, 2019, was HKD 204,826,000, a decrease of 19.6% compared to HKD 255,041,000 for the same period in 2018[37]. - The net loss attributable to owners of the company for the nine months ended December 31, 2019, was HKD 10,589,000, compared to a loss of HKD 21,706,000 in 2018[37]. - Total comprehensive loss for the nine months ended December 31, 2019, was HKD 10,669,000, compared to HKD 21,892,000 in 2018[37]. - Basic and diluted loss per share for the nine months ended December 31, 2019, was HKD 2.65, an improvement from HKD 5.43 in the same period of 2018[37]. - Total expenses for the nine months ended December 31, 2019, were HKD 215,742,000, down 22% from HKD 276,800,000 in the same period of 2018[65]. - The company reported a financial cost of HKD 326,000 for the nine months ended December 31, 2019, compared to a financial income of HKD 75,000 in the same period of 2018[66]. Revenue and Profitability - For the nine months ended December 31, 2019, the group's tour revenue decreased by 20.0% to approximately HKD 201.0 million, while gross profit increased by 39.5% to approximately HKD 26.5 million, resulting in a gross margin of 13.2%, up 5.6 percentage points[12]. - For the three months ended December 31, 2019, the group's tour revenue decreased by 17.1% to approximately HKD 75.3 million, while gross profit increased by 70.3% to approximately HKD 10.9 million, with a gross margin of 14.5%, up 7.5 percentage points[12]. - Revenue from the free travel products increased from approximately HKD 0.5 million for the nine months ended December 31, 2018, to approximately HKD 1.0 million for the same period in 2019, driven by active marketing and promotion[13]. - Revenue from travel-related products and services decreased from approximately HKD 3.2 million for the nine months ended December 31, 2018, to approximately HKD 2.8 million for the same period in 2019, mainly due to a decrease in ticket sales for theme parks and shows[14]. Expenses and Cost Management - Selling expenses decreased by 42.0% from approximately HKD 5.0 million for the nine months ended December 31, 2018, to approximately HKD 2.9 million for the nine months ended December 31, 2019, primarily due to reduced advertising and promotional expenses[10]. - Selling expenses decreased by 17.2% to approximately HKD 10.6 million for the nine months ended December 31, 2019, primarily due to reduced advertising and sponsorship expenses[15]. - Administrative expenses remained relatively stable at approximately HKD 30.6 million for the nine months ended December 31, 2019[16]. Investments and Strategic Initiatives - The company sold a total of 4,760,000 shares at an average price of approximately HKD 1.16 per share, generating total proceeds of approximately HKD 5.5 million (excluding transaction costs) on January 9, 2020[9]. - The company recorded a fair value gain of approximately HKD 0.6 million from investments in Gadang Holdings Limited and Flyang International Holdings Group Limited, compared to a fair value loss of approximately HKD 2.7 million for the nine months ended December 31, 2018[10]. - The group has established a joint venture, Triplabs (BVI) Limited, investing in eight startups related to tourism and travel technology, which includes various innovative solutions such as AI-driven marketing and travel booking platforms[19]. - The group remains confident in its strategic initiatives despite the negative impact of the COVID-19 outbreak on the travel industry, aiming for growth and advancement[19]. Corporate Governance and Compliance - The company has complied with all corporate governance codes during the nine months ending December 31, 2019[30]. - No stock options were granted, exercised, or canceled under the stock option plan from the adoption date to December 31, 2019[34]. - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2019[32]. - There are no reported conflicts of interest among directors and major shareholders regarding competition with the company's business[33]. Shareholding Structure - Major shareholders, including Ms. Chan and Mr. Yuen, hold 300 million shares each, representing 75% ownership[21]. - Ms. Chan holds 68.02% and Mr. Yuen holds 23.42% of the shares in the investment holding company, which owns 75% of the company[25]. Accounting Policies and Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, which may impact future financial reporting[48]. - The group adopted HKFRS 16 from April 1, 2019, resulting in a net impact of an increase of HKD 135,000 in cumulative losses[49]. - The weighted average incremental borrowing rate applied to lease liabilities as of April 1, 2019, was 4.95%[49]. - The group’s accounting policy for leases includes recognizing right-of-use assets and corresponding liabilities from the date the leased asset is available for use[50]. Other Financial Metrics - The group reported a loss before tax of HKD 10,669 for the nine months ended December 31, 2019, compared to a loss of HKD 25,200 for the same period in 2018[59]. - The reported segment loss for travel-related products and services was HKD 8,938 for the nine months ended December 31, 2019, compared to a loss of HKD 22,680 in the same period of 2018[59]. - Depreciation of property, plant, and equipment was HKD 2,144 for the nine months ended December 31, 2019, compared to HKD 1,826 for the same period in 2018[59]. - The group recognized a financial income of HKD 48 for the nine months ended December 31, 2019, down from HKD 78 in the same period of 2018[59]. - The total reported segment revenue for travel-related products and services was HKD 204,826 for the nine months ended December 31, 2019[59]. - The company recognized a net foreign exchange loss of HKD 361,000 for the nine months ended December 31, 2019, compared to a loss of HKD 970,000 in the same period of 2018, indicating improved currency management[63]. - The company reported a total comprehensive loss of HKD 4,984,000 for the three months ended December 31, 2019, compared to a loss of HKD 6,095,000 in the same period of 2018, showing a narrowing of losses[61]. - No dividend was recommended for the nine months ended December 31, 2019, consistent with the previous year[74]. - As of December 31, 2019, the group had no significant contingent liabilities, unchanged from the previous year[75]. - Related party transactions included rental expenses of HKD 2,115,000 with Zheng Tian Investment Limited for the nine months ended December 31, 2019, unchanged from the previous year[78]. - Management compensation for the nine months ended December 31, 2019, totaled HKD 5,140,000, slightly up from HKD 5,090,000 in the previous year[80].
飞道旅游科技(08069) - 2020 Q3 - 季度财报