Revenue and Profitability - Total revenue decreased by approximately 4.8% from HKD 50.1 million in 2024 to HKD 47.7 million in 2025[11] - Gross profit fell by about 15.5% from HKD 18.1 million in 2024 to HKD 15.3 million in 2025, with a gross margin decline from 36.2% to 32.0%[11] - Revenue from the travel products and services segment increased by 6.1% to HKD 34.7 million in 2025, driven by growth in the Greater Bay Area[14] - Revenue from the travel business process management segment remained stable at approximately HKD 10.8 million in 2025, compared to HKD 11.2 million in 2024[15] - Ticket distribution revenue decreased by approximately 64.5% from about HKD 6.2 million for the six months ended June 30, 2024, to about HKD 2.2 million for the six months ended June 30, 2025[16] - The overall gross margin decreased by approximately 4.2 percentage points from about 36.2% for the six months ended June 30, 2024, to about 32.0% for the six months ended June 30, 2025[26] - The gross profit from the travel products and services segment increased by approximately HKD 1.3 million or about 20.6% to approximately HKD 7.6 million for the six months ending June 30, 2025, compared to HKD 6.3 million for the same period in 2024[30] - The gross profit margin for the travel products and services segment rose by approximately 2.6 percentage points to about 21.9% for the six months ending June 30, 2025, from approximately 19.3% for the same period in 2024[30] - The group's overall gross profit decreased by approximately HKD 2.8 million or about 15.5% to approximately HKD 15.3 million for the six months ending June 30, 2025, from approximately HKD 18.1 million for the same period in 2024[37] Financial Position - The net loss for the period improved by 55.6%, from a loss of HKD 28.8 million in 2024 to a loss of HKD 12.8 million in 2025[4] - Total assets increased by 57.3% from HKD 110.8 million as of December 31, 2024, to HKD 174.3 million as of June 30, 2025[4] - Shareholders' equity decreased significantly by 1,633.3%, from HKD 0.6 million in 2024 to HKD (9.2) million in 2025[4] - The overall asset-liability ratio improved from 415.9% in 2024 to (22.5)% in 2025, indicating a significant change in financial structure[4] - The group's current liabilities net worth increased to approximately HKD 26.9 million as of June 30, 2025, from approximately HKD 13.2 million as of December 31, 2024[39] - The total liabilities increased to HKD 127,500,000 as of June 30, 2025, compared to HKD 58,692,000 as of December 31, 2024, marking a 117.0% increase[132] - The group obtained an interest-free loan of approximately HKD 2.1 million from the Canadian government as of June 30, 2025, down from HKD 2.3 million as of December 31, 2024[40] - The group held government bonds issued by the Canadian government amounting to approximately HKD 1.3 million as of June 30, 2025, with an interest rate of 2.8%[50] Cash Flow and Expenses - The net cash generated from operating activities was approximately HKD 27.0 million for the six months ending June 30, 2025, compared to approximately HKD 5.5 million for the same period in 2024[35] - The group's cash and cash equivalents increased by approximately 28.0% to about HKD 38.9 million as of June 30, 2025, from approximately HKD 30.4 million as of December 31, 2024[35] - Selling expenses decreased from approximately HKD 1.4 million for the six months ending June 30, 2024, to approximately HKD 0.9 million for the same period in 2025, primarily due to reduced rental expenses related to remote work arrangements in Canada[31] - Administrative expenses increased by approximately HKD 4.3 million or about 23.6% to approximately HKD 22.5 million for the six months ending June 30, 2025, from approximately HKD 18.2 million for the same period in 2024, mainly due to a one-time early termination fee paid to a service provider[32] - The company reported a net increase in cash and cash equivalents of HKD 6,458,000 for the current period, compared to HKD 9,033,000 in the previous year[89] Business Strategy and Operations - The company plans to continue monitoring and reassessing its business model and strategies in the U.S. market following the sale of its Canadian operations[13] - The company plans to optimize its business structure by focusing on more promising areas such as tourism products and services in the Greater Bay Area[19] - The company will continue to monitor and reassess its business model and strategy in the U.S. market, considering potential transformation or divestment opportunities[19] - The company anticipates continued revenue growth from self-operated tours in the Greater Bay Area of China, contributing to future cash flow stability[93] - The company operates three main business segments: ticket distribution, travel business process management, and travel products and services, which are regularly monitored by the executive directors[99][100] Shareholder Information - The company will not declare an interim dividend for the six months ended June 30, 2025, to retain more cash for operational needs and future development[17] - The company has not declared any interim dividends for the six months ended June 30, 2025, and June 30, 2024[58] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2025[70] - As of June 30, 2025, Mr. Liu holds 900,000,000 shares, representing a 75.0% equity interest in the company[65] - Tomorrow Education Technology Limited holds 900,000,000 shares of the company, with Mr. Liu owning 70% and Mr. Liu Jie Feng owning 30%[66] Compliance and Auditing - The company's interim financial statements were reviewed in accordance with International Auditing and Assurance Standards Board's guidelines[75] - The review did not reveal any matters that would lead to a belief that the interim financial statements were not prepared in accordance with International Accounting Standard 34[76] - The financial report includes a comprehensive income statement for the six months ended June 30, 2025[78] - The group reviewed its unaudited interim results and financial report for the six months ended June 30, 2025, which were deemed to be prepared in accordance with applicable accounting standards and regulations[64] - The review was conducted by Hong Kong Lixin Dehao Accounting Firm Limited, with no significant issues identified[77] Credit Risk and Provisions - Expected credit loss provisions for financial assets decreased by approximately HKD 17.5 million or about 86.6% to approximately HKD 2.7 million for the six months ending June 30, 2025, from approximately HKD 20.2 million for the same period in 2024[33] - As of June 30, 2025, the expected credit loss provision for trade receivables and amounts due from travel companies for ticket costs totaled HKD 114,952,000, with a total carrying amount of HKD 160,924,000[143] - The expected loss rate for trade receivables as of June 30, 2025, was 71.4%, with a breakdown of overdue amounts showing 1.9% for current, 5.6% for 1-90 days overdue, and 100% for amounts overdue over 12 months[143] - The company maintains a credit policy that has been effective in limiting credit risk to an acceptable level[147] - The company continuously evaluates the credit quality of its counterparties, with credit terms typically ranging from 30 to 90 days[141] Foreign Exchange and Financial Assets - The company recorded a net foreign exchange loss of approximately HKD 3.6 million for the six months ended June 30, 2025, compared to a net foreign exchange gain of approximately HKD 1.8 million for the six months ended June 30, 2024[46] - The company experienced a foreign exchange loss of HKD 3,575,000 in the current period, compared to a gain of HKD 1,813,000 in the previous period, reflecting a negative swing of approximately HKD 5,388,000[89] - As of June 30, 2025, the financial assets measured at fair value through profit or loss amounted to HKD 1,333,000, while those measured at fair value through other comprehensive income totaled HKD 1,644,000, resulting in a total of HKD 2,977,000[149] Acquisitions and Disposals - The company completed the sale of its Canadian subsidiary for CAD 3.0 million (approximately HKD 17.1 million) on August 29, 2025[12] - As of June 30, 2025, the group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[48] - On August 29, 2025, the company entered into a sale agreement to sell its indirect wholly-owned subsidiary BVTEHC Inc. and its subsidiary Tour East Holidays (Canada) Inc. for approximately CAD 3 million, equivalent to about HKD 17.1 million[155]
富盈环球集团(01620) - 2025 - 中期财报