Financial Performance - For the six months ended June 30, 2024, the group recorded unaudited revenue of approximately HKD 48.3 million, a significant increase of HKD 12.1 million or 33.4% compared to HKD 36.2 million for the same period in 2023[5]. - The group reported an unaudited loss attributable to owners of the company of approximately HKD 5.9 million for the six months ended June 30, 2024, compared to an unaudited profit of HKD 3.0 million for the same period in 2023[5]. - Basic and diluted loss per share for the six months ended June 30, 2024, was HKD 0.49, compared to a profit of HKD 0.25 per share for the same period in 2023[5]. - For the six months ended June 30, 2024, the company reported a total comprehensive loss of HKD 6,013,000, compared to a total comprehensive income of HKD 3,056,000 for the same period in 2023[9]. - The company incurred a loss of HKD 5,921,000 during the six months ended June 30, 2024, compared to a profit of HKD 2,970,000 for the same period in 2023[9]. - The group recorded a pre-tax loss of HKD 5,921,000 for the six months ended June 30, 2024, compared to a profit of HKD 2,970,000 for the same period in 2023[31][33]. Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to HKD 11.9 million, compared to HKD 11.6 million as of December 31, 2023[8]. - Current assets decreased to HKD 41.0 million as of June 30, 2024, from HKD 47.1 million as of December 31, 2023[8]. - The net current asset value was HKD 17.5 million as of June 30, 2024, down from HKD 24.3 million as of December 31, 2023[8]. - Total assets less current liabilities were HKD 29.4 million as of June 30, 2024, compared to HKD 35.9 million as of December 31, 2023[8]. - The group's total equity attributable to owners decreased to HKD 27.7 million as of June 30, 2024, from HKD 33.7 million as of December 31, 2023[8]. - Total borrowings and lease liabilities amounted to approximately HKD 2.8 million as of June 30, 2024, down from HKD 3.4 million as of December 31, 2023[116]. - As of June 30, 2024, the group's asset-liability ratio was approximately 37.3%, a significant increase from about 10.0% as of December 31, 2023[121]. Cash Flow - Cash and cash equivalents decreased by HKD 1,308,000 during the six months ended June 30, 2024, resulting in a closing balance of HKD 5,182,000[14]. - Operating activities generated a net cash outflow of HKD 683,000 for the six months ended June 30, 2024, compared to a net cash inflow of HKD 3,064,000 for the same period in 2023[14]. - The company's cash flow from investing activities resulted in a net cash outflow of HKD 10,000 for the six months ended June 30, 2024, compared to a net inflow of HKD 470,000 in the same period of 2023[14]. - The company’s financing activities resulted in a net cash outflow of HKD 615,000 for the six months ended June 30, 2024, compared to HKD 1,987,000 in the same period of 2023[14]. - The group's cash and cash equivalents decreased from approximately HKD 9.3 million as of December 31, 2023, to approximately HKD 7.9 million as of June 30, 2024, primarily due to net cash outflows from operating and financing activities[115]. Revenue Segments - Revenue from customer contracts amounted to HKD 46,245,000, up 33.4% from HKD 34,699,000 year-on-year[26]. - The travel business segment generated revenue of HKD 34,302,000, representing a 15.5% increase from HKD 29,825,000 in the previous year[31]. - The automotive business segment reported revenue of HKD 8,792,000, a 67.5% increase from HKD 5,260,000 in the same period last year[31]. - The performance of the event business segment showed a revenue of HKD 5,208,000, compared to HKD 1,114,000 in the previous year[31]. - The group has three reportable segments: travel, automotive, and events, with each segment's performance being evaluated for resource allocation[28][29][30]. Expenses and Losses - The cost of sales rose sharply by approximately 62.3%, from about HKD 26.8 million to about HKD 43.5 million during the same periods, driven by increased sales of hotel rooms, event tickets, and car rental services[64]. - Gross profit decreased by approximately 48.9%, from about HKD 9.4 million to about HKD 4.8 million, primarily due to reduced margins from hotel room sales amid intense competition in the industry[64]. - Administrative expenses increased from approximately HKD 6.6 million to about HKD 12.0 million, representing an increase of approximately 81.8% due to higher employee benefits and sponsorship expenses[66]. - Employee benefits expenses surged to HKD 10,093,000 from HKD 4,940,000, an increase of 104.6%[37]. Dividends and Equity - The board of directors decided not to recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[5]. - No interim dividend was recommended for the six months ended June 30, 2024, remaining at zero, similar to the previous period[122]. - The company’s total equity increased to HKD 27,659,000 as of June 30, 2024, from HKD 39,177,000 at the end of the previous reporting period[9]. Strategic Initiatives - The company has expanded its business into Hong Kong, obtaining a travel agency license on March 22, 2023[59]. - The strategic goal is to consolidate its market position in the Macau tourism industry and seek partnerships with more hotel operators and travel agencies[59]. - The company plans to expand its tourism business into China, aiming to increase revenue sources related to the Macau tourism industry[59]. - The group aims to collaborate with more hotel operators and is actively seeking partnerships with popular and quality hotels[103]. - The group has allocated approximately HKD 22.2 million for collaboration with event organizers, sponsoring well-known stars and artists for performances and events in China, Macau, and Asia[101]. Risks and Challenges - The group faces risks related to potential travel restrictions and consumer sentiment due to the pandemic, which may impact the tourism industry in Macau and China[104]. - The group will ensure its business plans are flexible to respond to market conditions and will closely monitor business trends to identify favorable entrepreneurial environments[104]. - The group faced significant adverse impacts on its business and operations due to pandemic-related lockdowns and travel restrictions in Macau, China, and Hong Kong, leading to a substantial decrease in visitor numbers[107]. - The group's ability to generate revenue is heavily reliant on the performance of hotel operators in Macau, which may be adversely affected by changes in policies and economic conditions in the region[107]. Governance and Management - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the group[129]. - As of June 30, 2024, the chairman held 900 million shares, representing 75.0% of the company's equity[134]. - As of June 30, 2024, Silver Esteem Limited and Ms. Wang Peiqiong each hold 900,000,000 shares, representing 75.0% ownership in the company[137]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, and found them to be prepared in accordance with applicable accounting standards[142].
瀛海集团(08668) - 2024 - 中期财报