Financial Performance - Revenue for the six months ended June 30, 2022, was HK$29,039,000, representing a 64.8% increase from HK$17,626,000 in 2021[13] - Gross loss improved to HK$6,786,000 from HK$19,077,000, a 64.4% reduction[13] - Loss attributable to owners of the Company decreased to HK$56,771,000 from HK$69,078,000, a 17.8% improvement[13] - Basic and diluted loss per share improved to HK(11.30) from HK(13.75) year-on-year[13] - The Group recorded total revenue of approximately HK$29.0 million for the six months ended June 30, 2022, representing an increase of 64.8% compared to HK$17.6 million for the same period in 2021[17] - The gross loss for the Group was approximately HK$6.8 million, a decrease of 64.4% from HK$19.1 million in the same period last year[17] - Loss attributable to owners of the Company was approximately HK$56.8 million, down from HK$69.1 million for the six months ended June 30, 2021[17] - The Group's total comprehensive income for the period was a loss of HK$88,408,000, compared to a loss of HK$89,863,000 in the previous year[165] - The total loss for the period was approximately HK$57,098,000, a decrease from the loss of HK$69,468,000 in the prior year[165] - The Group's exchange differences on translation of foreign operations resulted in a loss of HK$30,728,000 for the period[165] Operational Highlights - The Group's first package tour to Japan successfully departed on June 22, 2022, marking a significant milestone after over two years of outbound travel restrictions from Hong Kong[21] - Following the government's distribution of consumption vouchers in April 2022, the Group's local day tours and Staycation accommodation business became active again[21] - The Japanese government gradually opened up entry for tourists in May 2022, further expanding in June 2022, positively impacting the Group's hotel business with a continuous rise in occupancy rates[21] - The Group's newly developed merchandise sales business, "EGL Market," continued to grow, benefiting from increased online shopping during the pandemic[19] - The Group introduced mobile service vehicles to facilitate shopping for customers in various districts, enhancing public awareness of "EGL Market"[19] - The Group's hotel business revenue increased, contributing to the overall reduction in losses[33] - Package tours revenue decreased by 32.4% to approximately HK$2.3 million, contributing 7.8% to total revenue[38] - Revenue from FIT Products and ancillary travel related products increased by 22.1% to approximately HK$2.4 million, contributing 8.4% to total revenue[41] - Sale of merchandise revenue increased by 61.5% to approximately HK$10.8 million, contributing 37.3% to total revenue[41] - Hotel operation revenue increased by 142.4% to approximately HK$13.5 million, contributing 46.5% to total revenue[43] Financial Position and Ratios - Gearing ratio increased to 85.2% from 76.6%[13] - Net debts over equity surged to 1,637.4% compared to 493.0% in the previous period[13] - Current ratio increased to 1.2 times as of June 30, 2022, compared to 0.6 times as of December 31, 2021[54] - The total equity attributable to owners of the Company decreased to approximately HK$35.5 million as of June 30, 2022, from HK$123.9 million as of December 31, 2021[70] - Cash at banks and on hand as of June 30, 2022, was approximately HK$125.2 million, a decrease from HK$130.1 million as of December 31, 2021[70] - The company's net assets decreased from HK$122,294,000 to HK$33,886,000, a decline of approximately 72.2%[169] Cost Management - The Group implemented various cost control initiatives, including staff unpaid leave and salary reductions, to improve operating cash flows[30] - Selling expenses decreased by 18.6% to approximately HK$13.5 million in 2022 from HK$16.6 million in 2021[52] - Administrative expenses decreased by 9.2% to approximately HK$45.8 million in 2022 from HK$50.4 million in 2021[52] - The Group has continued to implement austerity measures to maintain operating cash outflows at a low level, including workforce restructuring and salary reductions[183] Future Outlook - The management expressed cautious optimism regarding future financial performance due to the relaxation of quarantine requirements by the Hong Kong Government[33] - The Group plans to explore additional sources of income and implement cost control measures, including workforce restructuring and seeking rent concessions from landlords[95] - The management is confident in Hong Kong's economic recovery and aims to strengthen its position in the market[95] - The expected mild revival of the travel business is based on the latest developments of the pandemic and travel restrictions, particularly in Japan and Hong Kong[183] Shareholder Information - As of June 30, 2022, Evergloss Management holds 301,642,000 shares, representing approximately 60.03% of the issued share capital of the company[135] - Alpadis Trust (HK) Limited, as trustee, holds 340,018,000 shares, accounting for about 67.67% of the company's issued share capital[135] - The total number of shares held by substantial shareholders includes 19,352,000 shares held by Likang and 19,024,000 shares held by Yohki Ryokoh Limited[137] - The total number of shares available for issue under the Share Option Scheme was 50,000,000 shares, representing approximately 9.95% of the issued share capital of the Company as of the interim report date[148] - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2022, compared to HK$Nil for the same period in 2021[148] Government Support and Compliance - The group received approximately HK$2,576,000 under the Hong Kong Government's "Employment Support Scheme" during the six months ended June 30, 2022, opting to reduce related salary expenses instead of presenting the grant separately[192] - Government grants totaling approximately HK$5,240,000 were included in "Other income, gains and losses, net" to support the group's operations[192] - The company has undertaken to maintain specific performance obligations as part of the banking agreements[150]
东瀛游(06882) - 2022 - 中期财报