Financial Performance - The Group recorded total revenue of approximately HK$691.9 million for the six months ended June 30, 2025, representing a decrease of 8.9% compared to HK$759.3 million for the same period in 2024[14]. - Gross profit amounted to approximately HK$137.1 million, a decrease of 24.0% from HK$180.2 million in the previous year[14]. - Profit attributable to owners of the Company was approximately HK$5.8 million, down 83.0% from HK$34.1 million in the prior year[14]. - The gross profit margin decreased to 19.8% from 23.7% year-on-year[14]. - The operating profit margin fell to 1.9% compared to 6.9% in the previous year[14]. - The net profit margin decreased to 0.8% from 4.5% year-on-year[14]. - The return on equity attributable to owners of the Company dropped to 6.2% from 55.6% in the previous year[14]. - Basic earnings per share attributable to the owners of the company for the first half of 2025 was 1.15 HK cents, compared to 6.79 HK cents for the same period in 2024[54]. Revenue Breakdown - Revenue from package tours decreased by 11.7% to approximately HK$585.5 million, contributing 84.6% to the Group's total revenue[66]. - Gross profit from package tours dropped by 46.5% to approximately HK$59.7 million, with a gross profit margin of 10.2%[66]. - Revenue from FIT Products and ancillary travel related products decreased by 20.8% to approximately HK$31.1 million, contributing 4.5% to total revenue[72]. - Gross profit from FIT Products was approximately HK$23.0 million, representing a decrease of 21.3%[72]. - Hotel room rental revenue increased by 24.6% to approximately HK$80.2 million, with an average occupancy rate of 91.6%[74]. - Gross profit from hotel operations rose by 37.6% to approximately HK$54.3 million[74]. - Revenue from hotel operations increased by 24.6% to approximately HK$80.2 million for the six months ended 30 June 2025, compared to HK$64.4 million for the same period in 2024[77]. - Gross profit rose by 37.6% to approximately HK$54.3 million for the six months ended 30 June 2025, up from HK$39.5 million in the previous year[77]. Expenses and Costs - Selling expenses increased by 19.3% to approximately HK$49.4 million, primarily due to higher frontline staff costs[91]. - Administrative expenses slightly decreased by 0.5% to approximately HK$84.2 million[92]. - Finance costs for the period were approximately HK$2.8 million, an increase from HK$1.6 million in the previous period[93]. - Income tax expenses decreased to approximately HK$1.6 million from HK$10.7 million in the prior period, mainly due to a shift from assessable profits to losses in Travel Related Business[102]. - The interest coverage ratio fell to 2.3 times from 7.2 times, reflecting a decrease in profit before finance costs and taxation[104]. - The current ratio decreased to 0.6 times as at 30 June 2025, down from 0.8 times as at 31 December 2024, due to increased bank borrowings and loans from a related company[106]. Dividends and Shareholder Information - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025, compared to HK$Nil for the same period in 2024[17]. - The Group did not recommend an interim dividend for the six months ended 30 June 2025, but declared a special dividend of HK6 cents per share totaling HK$30,147,000[103]. - As of June 30, 2025, Mr. Yuen Man Ying holds 840,000 shares, representing approximately 64.18% of the issued share capital[158]. - The largest shareholder, Yao Teng Management, holds 301,642,000 shares, representing approximately 60.03% of the issued share capital[171]. - No substantial shareholders other than the disclosed ones had interests or short positions in the shares of the Company as of June 30, 2025[172]. Strategic Initiatives and Marketing - The Group plans to continue promoting product innovation and expand into popular travel destinations while enhancing customer service experiences[49]. - The Group integrated multi-channel marketing strategies, including partnerships with KOLs, to promote mainland China package tours and enhance brand visibility[31]. - The Group actively utilized social media platforms to promote travel products and share tourism information, collaborating with KOLs for engaging promotional content[34]. - The Group's marketing strategy includes participating in exhibitions and hosting promotional events, such as the 'EGL Tours 39th Anniversary Celebration' in June 2025[145]. - The Group aims to expand its portfolio of high-quality travel packages and FIT offerings to adapt to evolving market trends and consumer preferences[143]. Community Engagement and Corporate Responsibility - In the first half of 2025, the Group organized social welfare initiatives, including the "Joyful Day Out for Seniors" event, to support community development and senior well-being[35]. - The Group donated HK$500,000 to support victims of an earthquake in central Myanmar and organized an employee donation drive to amplify support[40]. - The Group is committed to advancing workplace health programs, including stress management and financial planning seminars for employees[45]. Operational Challenges and Outlook - The Group's hotel business performance was satisfactory despite a significant decrease in travel-related revenue due to geopolitical tensions and rumors affecting travel demand[52]. - In early 2025, rumors of a catastrophic earthquake in Japan led to a significant decline in the Group's Travel Related Business performance, but recovery is expected in the second half of 2025[142]. - The Hotel Business is projected to maintain strong performance throughout 2025, indicating resilience in the Group's overall operations[142]. Governance and Compliance - The Group is committed to high standards of corporate governance and has complied with applicable code provisions during the six months ended June 30, 2025[151]. - The audit committee comprises three independent non-executive Directors, ensuring governance and oversight of the financial reporting process[186]. Future Plans and Investments - The Group plans to finance future capital expenditures using existing internal resources[129]. - The Group is enhancing its digital and online platforms to improve customer service in the digital age, alongside exploring opportunities for expanding its branch network[146][147].
东瀛游(06882) - 2025 - 中期财报