Financial Performance - The Group recorded total revenue of approximately HK$540.1 million for the six months ended June 30, 2023, representing a significant increase of 1,759.8% compared to HK$29.0 million in the same period of 2022[14]. - Gross profit amounted to approximately HK$136.8 million, a change of 2,116.6% from a gross loss of HK$6.8 million in the same period of 2022[14]. - Profit attributable to owners of the Company was approximately HK$20.7 million, compared to a loss of HK$56.8 million in the same period of 2022, marking a turnaround[14]. - The gross profit margin improved to 25.3% from a negative margin of -23.4% in the previous year[14]. - The operating profit margin was 6.9%, a significant recovery from -217.5% in the same period of 2022[14]. - The net profit margin reached 3.8%, compared to -195.5% in the previous year[14]. - Basic earnings per share for the first half of 2023 was HK4.12 cents, compared to a basic loss per share of HK11.30 cents for the same period in 2022[53]. - Revenue from package tours reached approximately HK$450.5 million, a remarkable increase of 19,799.1% and contributing 83.4% to the Group's total revenue[60]. - Revenue from FIT products and ancillary travel-related products and services was approximately HK$40.1 million, an increase of 1,545.3%, contributing 7.4% to total revenue[62]. Operational Developments - The Group expanded its operations by collaborating with four prefectures in Kyushu, Japan, and opened a new travel agency branch in Kowloon Bay, bringing the total number of branches in Hong Kong to six[22]. - In the first half of 2023, the Group's hotel business in Japan achieved a satisfactory occupancy rate, contributing positively to the financial position[27][29]. - The Group launched themed branches in Hong Kong, collaborating with four prefectures from Kyushu, Japan, and opened a new travel agency branch in Kowloon Bay, bringing the total to six branches as of June 30, 2023[24]. - The Group plans to expand its sales network by opening additional travel agency branches in Tuen Mun and Tseung Kwan O, and reopening sales outlets in Macau[45]. - The Group opened a new travel agency branch in Kowloon Bay in March 2023, with plans to open additional branches in Tuen Mun and Tseung Kwan O in the third quarter of 2023, totaling 8 branches in Hong Kong by year-end[152]. Marketing and Branding - The Group introduced a new sub-brand "Don't just visit Japan, go travel around the world with us," promoting global travel experiences and organizing a successful promotional event from June 7 to June 25, 2023[26][28]. - The Group's marketing efforts included hundreds of special package tours, such as the "No Plan No Worry Summer Family Travel" and "Singapore F1 Racing Package"[26][28]. - The Group's marketing strategies have received significant market attention, indicating a positive response to their promotional activities[26][28]. - The Group's efforts in enhancing brand image and diversifying travel offerings align with the objectives of "A New Prospect for 2023" and "Proactive Stepping Forward"[28][31]. Financial Position and Ratios - The gearing ratio decreased to 64.1% from 75.1% as of December 31, 2022[14]. - The net debts over equity ratio improved to 1,206.8% from 2,234.2% as of December 31, 2022[14]. - The current ratio increased to 1.2 times as of June 30, 2023, up from 0.7 times at the end of 2022, due to an increase in cash and a decrease in current borrowings[102]. - Return on total assets was 2.2%, a recovery from -7.3% in the previous year, while return on equity attributable to owners was 70.1%, up from -159.7%[110]. - The interest coverage ratio improved to 2.9 times, compared to -6.3 times for the same period in 2022, driven by a significant recovery in the travel market[99]. Employee and Training Initiatives - The Group participated in various recruitment campaigns in 2023, including internship programs for tourism students and recruitment events targeting graduates[31][33]. - The Group resumed normal staff training courses in February 2023 to boost morale and communication among employees[34]. - As of June 30, 2023, the Group's total workforce increased to 385 employees, representing approximately 61.6% of the pre-epidemic total, with expectations to rise to over 80.0% in the second half of 2023[151]. Corporate Governance and Compliance - The Group is committed to high standards of corporate governance and has complied with applicable code provisions during the first half of 2023[164]. - Directors confirmed compliance with the Model Code for Securities Transactions throughout the six months ended June 30, 2023[167]. - No purchases, sales, or redemptions of the Company's listed securities occurred during the first half of 2023[168]. Social Responsibility and Community Engagement - In response to the February 2023 earthquake in Türkiye, the Group collected 3,000 boxes of relief supplies and raised over HK$70,000 for winter clothing donations[39]. - The Group has implemented environmental initiatives, including recycling programs and participation in the "Earth Hour" campaign to promote energy conservation[36][38]. Future Outlook - The management remains cautiously optimistic about the swift recovery of Hong Kong's economy and the travel industry environment[150]. - The Group anticipates its financial performance to gradually return to pre-COVID-19 levels[158]. - The Board believes the Group will have sufficient working capital to finance its operations in 2023 and 2024, supported by Great Port[160].
东瀛游(06882) - 2023 - 中期财报