Financial Performance - The travel-related products and services segment recorded a remarkable revenue increase of 7,500% from approximately HKD 1.6 million in the fiscal year 2021/2022 to approximately HKD 125.6 million in the fiscal year 2022/2023[7]. - The group reduced its loss from approximately HKD 16.1 million in the fiscal year 2021/2022 to approximately HKD 7.7 million in the fiscal year 2022/2023, representing a 52.3% decrease[7]. - The group reported a significant increase in tour revenue, rising 7,868.1% to approximately HKD 123.0 million for the fiscal year 2022/2023, with gross profit increasing 2,540.3% to about HKD 25.8 million[17]. - Revenue from travel-related products and services reached HKD 125.6 million, with a gross profit of HKD 28.4 million, driven by sales of travel insurance and tickets for theme parks and shows[16]. - The retail business generated segment revenue of approximately HKD 32.2 million in the fiscal year 2022/2023, although it incurred a segment loss of approximately HKD 5.0 million due to low gross margins and high initial costs[9]. - The restaurant business, part of the subsidiary with 51% ownership, recorded segment revenue of approximately HKD 0.7 million and a segment loss of approximately HKD 3.0 million during its trial operation phase[9]. Capital and Funding - The company completed two placements totaling 168,095,000 new ordinary shares, raising net proceeds of approximately HKD 35.6 million to ensure sufficient working capital[9]. - The company completed a share placement of 80 million new ordinary shares at HKD 0.281 per share, raising approximately HKD 21.9 million for general working capital[31]. - The company attempted a second share placement of up to 96 million new ordinary shares at HKD 0.150 per share, but the agreement lapsed without completion due to unmet conditions[31]. - The net proceeds from the third share placement amounted to approximately HKD 13.7 million, which was used for working capital in the retail business[33]. - The fourth share placement generated net proceeds of approximately HKD 17.6 million, allocated for settling accumulated lease renovations and general operating expenses[33]. Operational Developments - The group resumed sales of its free travel products, covering global destinations including Japan, Australia, Canada, the United States, and Asian countries, following the easing of border restrictions[18]. - The group established its first restaurant, Awesome Bar and Café, in Tsim Sha Tsui, which began trial operations in February 2023, contributing to the catering business revenue[21]. - A new concept store is set to open in June 2023, featuring over 4,000 square feet of space, including a VIP suite and a curated boutique[12]. - The company plans to open a new travel agency concept store in June 2023, with an estimated initial investment cost of about HKD 4.0 million[39]. Governance and Management - The company appointed Mr. Liang Jiachang and Mr. Huang Bingquan as independent non-executive directors on May 1, 2023, enhancing the board's expertise in accounting and finance with over 10 years of industry experience each[60][61]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse governance structure[66]. - The company emphasizes high-quality governance practices to protect shareholder interests and support business growth[65]. - The company has complied with all provisions of the corporate governance code during the fiscal year 2022/2023, with a noted deviation from provision C.2.1 explained in the report[65]. - The board held at least four meetings during the fiscal year, demonstrating a commitment to regular oversight and governance[69]. Employee and Labor Relations - Employee benefits expenses for the fiscal year 2022/2023 totaled approximately HKD 16.9 million, up from HKD 8.8 million in the previous year, reflecting an increase in workforce to support outbound travel operations[44]. - The employee turnover rate decreased from 16.4% in the fiscal year 2021/2022 to 5.0% in the fiscal year 2022/2023, primarily due to the termination of all tour guide contracts during the COVID-19 pandemic[174]. - The company has not received any complaints regarding employee harassment or discrimination in the fiscal year 2022/2023[185]. - The company provides competitive compensation and flexible benefits to attract and retain talent, recognizing the importance of a suitable work environment[168]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the company's operations in travel-related products and services, which significantly contributed to revenue during the fiscal year[120]. - The company emphasizes the importance of environmental, social, and governance (ESG) issues, integrating them into its sustainable development strategy to create long-term value for stakeholders[131]. - The company aims to reduce operational environmental impact, including emissions and resource consumption, and promotes a "paperless office" concept across its headquarters, branches, and stores[137]. - The company has identified and assessed ESG-related risks and opportunities, reporting them to the board of directors[132]. - The company is committed to maintaining a high level of corporate governance and transparency, ensuring compliance with applicable laws and regulations[137]. Financial Health and Stability - As of March 31, 2023, the company's net asset value was approximately HKD 42.0 million, significantly up from HKD 9.7 million a year earlier, with cash and cash equivalents at approximately HKD 45.7 million[29]. - The current ratio as of March 31, 2023, was 1.1 times, down from 1.6 times a year earlier, indicating a decrease in liquidity[32]. - The company's debt-to-asset ratio decreased from 39.9% on March 31, 2022, to 8.2% on March 31, 2023, primarily due to capital raised from share placements[33]. - The company’s bank borrowings as of March 31, 2023, were approximately HKD 0.8 million, down from HKD 4.1 million a year earlier, reflecting improved financial stability[29]. Risk Management - The company has established a risk management and internal control system to ensure effective operations and compliance with applicable laws and regulations[98]. - An independent professional advisor has been engaged to develop and maintain the internal audit function, with a three-year internal audit plan approved by the audit committee[99]. - The board is satisfied with the effectiveness and adequacy of the risk management and internal control systems for the fiscal year 2022/2023[99]. - The company has implemented remedial actions to address identified internal control deficiencies during the fiscal year[99]. Customer Engagement and Satisfaction - The company aims to enhance customer satisfaction through quality products and services, as well as reasonable pricing[140]. - The company offers a variety of travel itineraries, including local green lifestyle tours and customized exclusive tours, to enhance customer experience and satisfaction[197]. - The company has waived most cancellation fees for customers during the COVID-19 pandemic, despite having the right to charge fees[195]. - The company provides in-service training for tour guides to ensure customer satisfaction during trips[194].
飞道旅游科技(08069) - 2023 - 年度财报