Financial Performance - Total revenue for the year ended December 31, 2021, was HKD 14,621,000, a decrease of 27.5% from HKD 20,114,000 in 2020[11] - The company reported a pre-tax loss of HKD 25,112,000 for 2021, slightly improved from a loss of HKD 25,360,000 in 2020[11] - The group's revenue decreased by approximately 27.4% from about HKD 20.1 million in the year ended December 31, 2020, to about HKD 14.6 million in the year ended December 31, 2021[21] - Gross profit increased by approximately 481.8%, from about HKD 1.1 million to about HKD 6.4 million, mainly due to revenue generated from concert business[23] - Other income and gains decreased from about HKD 3.3 million to about HKD 1.9 million, primarily due to a reduction in interest income[25] - The group recorded a slight decrease in annual losses from approximately HKD 25.5 million to about HKD 24.9 million for the years ended December 31, 2020, and December 31, 2021[29] Assets and Equity - Total assets decreased to HKD 64,246,000 in 2021 from HKD 92,830,000 in 2020, representing a decline of 30.9%[11] - Total equity decreased to HKD 48,265,000 in 2021 from HKD 72,906,000 in 2020, a reduction of 33.8%[11] - The company’s non-current assets dropped to HKD 14,663,000 in 2021 from HKD 24,618,000 in 2020, a decrease of 40.4%[11] Business Operations - The company operates as a licensed wholesale travel agent and car rental service provider in Macau, focusing on B2B travel services[14] - The company has been authorized to provide various travel-related services, including car rentals and ticket sales for entertainment events[14] - The company aims to consolidate its existing business and provide stable returns and growth prospects for shareholders in the future[8] - The travel industry in Macau continues to be severely impacted by COVID-19, affecting overall revenue significantly[13] Future Plans and Strategies - The group plans to strategically seek partnerships with more hotel operators and travel agencies in Macau to enhance market share and revenue[16] - Future expansion plans include extending tourism business into China and exploring additional revenue sources related to the Macau tourism industry[16] - The company aims to diversify its business by expanding its tourism operations into China, having acquired a travel agency in the region[33] Financial Management - The company has maintained its capital structure without significant changes as of December 31, 2021[42] - The total borrowings and lease liabilities as of December 31, 2021, were approximately HKD 10.3 million, down from HKD 14.3 million as of December 31, 2020, with outstanding bank financing commitments of approximately HKD 6.9 million[44] - The debt-to-equity ratio as of December 31, 2021, was approximately 21.3%, an increase from 19.7% as of December 31, 2020[46] Corporate Governance - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and ensure transparency[82] - The board believes that the dual role of the Chairman and CEO, held by Mr. Cai Weizhen, is in the best interest of the company due to his extensive experience in the tourism industry since 2014[83] - The company has adopted the corporate governance code as per the GEM listing rules, updated to the latest amendments effective from January 1, 2022[82] - The company has established various committees, including the remuneration, nomination, and audit committees, to ensure effective governance[82] Environmental, Social, and Governance (ESG) Initiatives - The group reported a significant focus on environmental, social, and governance (ESG) initiatives during the reporting period from January 1, 2021, to December 31, 2021[144] - The group aims to reduce negative environmental impacts and improve employee welfare as part of its ESG strategy[147] - The company is committed to maintaining the highest ethical standards and complying with all relevant laws and regulations regarding environmental, social, and governance matters[152] - The company has implemented a "green environmental policy and procedures" to balance business returns with environmental protection[158] Employee Management - As of December 31, 2021, the group had a total of 54 employees, down from 71 employees in 2020, with employee costs approximately HKD 10.5 million for the year[61] - The gender distribution of employees shows 31 males and 23 females in 2021, compared to 46 males and 25 females in 2020[198][199] - The workforce composition includes 54 full-time employees and 0 part-time employees in 2021, down from 65 full-time employees and 6 part-time employees in 2020[200] Risk Management - The board believes that the risk management and internal control systems are adequate and effective, with no significant deficiencies identified as of the report date[126] - The company has established procedures to minimize credit risk associated with trade receivables, significantly reducing potential financial losses[55] - The company has not engaged in any hedging transactions or held any financial derivatives as of December 31, 2021, indicating a conservative approach to risk management[53]
瀛海集团(08668) - 2021 - 年度财报