Financial Performance - The Group recorded total revenue of approximately HK$44.6 million for the year ended December 31, 2021, a significant decrease of 82.2% compared to HK$249.8 million in 2020[25]. - The gross loss for the year amounted to approximately HK$29.2 million, representing an increase of 128.0% from HK$12.8 million in 2020[25]. - Loss attributable to owners of the Company was approximately HK$155.6 million, compared to HK$108.8 million in 2020[25]. - Basic loss per share for 2021 was HK30.98 cents, up from HK21.65 cents in 2020[54]. - The company reported a net loss of HK$156,425,000 for the year, worsening from a loss of HK$109,674,000 in 2020[108]. - The net profit margin for the Group was -349.1% in 2021, worsening from -43.5% in 2020[69]. - The interest coverage ratio improved to -12.4 times from -20.4 times, indicating a decrease in negative interest coverage due to a smaller increase in operating loss before finance costs[85]. - The gearing ratio based on total borrowings over total assets rose to 76.6% in 2021 from 64.2% in 2020, an increase of 12.4 percentage points[92]. - The return on total assets was -17.2% in 2021 compared to -10.3% in 2020, indicating a worsening performance[94]. - The return on equity attributable to owners was -125.6% in 2021, worsening from -43.1% in 2020[94]. Revenue Breakdown - Revenue from package tours was HK$7.7 million with a gross profit margin of 20.0%[59]. - Revenue from FIT products and ancillary travel-related services was HK$5.2 million, achieving a gross profit margin of 64.7%[59]. - Hotel operations reported revenue of HK$14.1 million but incurred a gross loss of HK$38.1 million, reflecting a gross margin of -270.0%[59]. - Revenue from package tours amounted to approximately HK$7.7 million, a decrease of 96.4% compared to HK$216.2 million in 2020, contributing 17.3% to the Group's total revenue[63]. - Revenue from FIT products and ancillary travel-related services was approximately HK$5.2 million, down 68.7% from HK$16.7 million in 2020, contributing 11.7% to the Group's total revenue[63]. - The sale of merchandise business generated revenue of approximately HK$17.5 million, an increase of 136.0% from HK$7.4 million in 2020, contributing 39.3% to the Group's total revenue[65]. - Hotel operation revenue was approximately HK$14.1 million, representing a 50.0% increase from HK$9.4 million in 2020, contributing 31.6% to the Group's total revenue[65]. Operational Challenges - The travel business has had almost zero revenue since mid-March 2020 due to the ongoing impact of the COVID-19 pandemic[25]. - Limited contributions were made from hotels, local tours, and retail business during the year[25]. - The significant losses were inevitable given the circumstances affecting the travel industry[25]. - The financial performance reflects the challenges faced by the Group in the current market environment[25]. - The Group may face further negative results and liquidity constraints due to the ongoing impact of the COVID-19 pandemic[106]. Strategic Initiatives - The Company plans to provide further details on business performance in the "Management Discussion and Analysis" section of the report[25]. - The Company continues to monitor the situation and adapt its strategies accordingly[25]. - The Group introduced new local one-day tours and Staycation products, which received positive customer feedback, including tours to the East Dam of the High Island Reservoir and Tai O on Lantau Island[28]. - The online shopping platform "EGL Market" maintained a competitive edge by regularly assessing market changes and introducing new products, while also expanding physical stores to enhance customer interaction[28]. - The Group participated in the "19th Hong Kong Food Festival," promoting local tours and Staycation accommodations, which garnered positive attention and support from attendees[32]. - The Group leveraged the government's electronic consumption voucher initiative to expand business and enhance brand image through various electronic payment methods[37]. - The Group continues to implement cost control measures, including human resource restructuring and seeking rent concessions, to improve operating cash flows[45]. - The Group remains cautiously optimistic about the recovery of the tourism industry and is prepared to maximize potential once the pandemic situation improves[46]. Employee and Community Engagement - The Group is actively encouraging employees to receive COVID-19 vaccinations by providing transportation allowances and paid leave[35]. - The Group implemented energy-saving measures during the pandemic, such as reducing the number of light tubes in offices and recycling stationery, to lower costs and conserve natural resources[37]. - The Group participated in the "Hygiene Anti-epidemic Measures Certification Scheme" to ensure standardized health measures for employee and customer safety[37]. - The Group recognizes the importance of maintaining good relationships with employees, customers, and suppliers for sustainable development[152]. - The Group's employee remuneration packages are regularly reviewed and are determined based on market information and individual performance[104]. Financial Position - Total assets decreased to HK$905,115,000 from HK$1,053,511,000, a reduction of approximately 14.1%[113]. - Total liabilities slightly decreased to HK$782,821,000 from HK$801,878,000, reflecting a decline of about 2.5%[113]. - The company's total equity dropped to HK$122,294,000 from HK$251,633,000, a decrease of approximately 51.4%[113]. - Cash at banks and on hand amounted to approximately HK$130.1 million as of December 31, 2021, an increase from HK$98.8 million as of December 31, 2020[96]. - The Group had capital commitments of approximately HK$0.8 million as of December 31, 2021, down from HK$1.0 million as of December 31, 2020, for acquiring property, plant, and equipment[98]. Governance and Compliance - The Group's commitment to corporate governance aims to create greater value for stakeholders, including shareholders, employees, and the community[147]. - The Group's financial risks and capital risks are detailed in the consolidated financial statements notes[143]. - The Group has established procedures for handling customer feedback and complaints to ensure timely responses to customer opinions[152]. - The Group's management regularly reviews the performance of major suppliers and service providers to ensure effective monitoring and improvements[152]. Shareholder Information - The company has not granted, cancelled, lapsed, or exercised any share options during the year, maintaining the same status as in 2020[104]. - The company did not declare any dividends for the year 2021, consistent with 2020[131]. - The substantial shareholder Evergloss holds 374,130,000 shares, accounting for 74.46% of the issued share capital of the company[194]. - The interests of directors and chief executives in shares and debentures are recorded as required by the SFO[190].
东瀛游(06882) - 2021 - 年度财报