REG - Hanatour Service Inc - Annual Financial Report
Annual Report
Click on, or paste the following link into your web browser, to view the full announcement.
http://www.rns-pdf.londonstockexchange.com/rns/4307K_1-2020-4-22.pdf
I. OUTLINE OF THE COMPANY
1. Purpose of the Company
Purpose
Remark
1. General Travel Business(Travel Agency)
2. Ticketing and Sales of Airline and Boat
3. Souvenir Sales
4. Issuing of Selling Offers
5. Real Estate Dealing and Lease
6. Optional Communication Business
7. Computer Programming and Supply
8. Telemarketing Business
9. Printing and Publishing Business
10. Issuing of Periodicals
11. Operating School to Train Travel Experts
12. Transportation Business(Chartered Buses)
13. Internet Business
(Install and Provide Contents, Internet Marketing)
14. E-commerce and Information Processing
15. Advertisement (Internet and Outdoor Advertisement)
16. Information and communication Related Business
17. Web Hosting and Homepage Establishment
18. Warehousing
19. Tourists Hotel & Lodging business
20. Operation and management of Tourists Hotels & Lodging
and other incidental facilities
21. Tourists Hotels & Lodging Management Business
22. Investment, Development, Operation and Asset Management
of the Domestic and Overseas Real Estate
23. Real Estate Agent Business
24. Management of Intellectual Property Rights and License
Business (Brand, Trademark Rights)
25. Intangible Assets Sales and Service (Knowledge, Information)
26. Production and Distribution
(Movies, Broadcasting, Videos and Other Cultural Products)
27. Production and Distribution of Digital Contents
28. Operating Performance Facilities
29. Planning Performance
30. Character business
31. Exhibition and Event Agency
32. Internet Broadcasting
33. Tourism Development and Incidental Business
(Marketing Counsel, Planning and Consulting)
34. Education service
35. Operation of Lifelong E-learning Education Facilities
36. Gift Certificate Sales
37. Wedding Consulting
38. Amusement Park Operation
39. Comprehensive Leisure Facilities and Operation Management
40. Tourist Attraction Development Business
41. Comprehensive Recreation Business
42. International Conference Planning Business
43. Camping Car Business
44. Bonded Goods and Tourism Product Sales Business
45. Accommodation Business
46. Accommodation reservation Service
47. Web Portal and Internet Information Service
48. Franchise Business
49. Restaurant Business
50. Shopping Center Leasing and Sublease Business
51. Ticket sales related to Culture, Arts and Sports Events
52. Database Development and Sales Related to Culture, Arts and
Sports
53. Investment of Cultural Projects
(Performances and Film Production)
54. Organization of Events and Sponsors
55. Importation and Agency Business of Performance Publication
Rights
56. Brokerage Agency Business for Copyrights and Neighboring
Copyrights of Performance
57. Membership Sales and Brokerage Arrangements
58. Overseas Studies Agency Business
59. Lifelong Education Facilities Operating
60. Financial Loan and Other Financial Service Business
61. Electronic Financial Business
62. Planning and Promotion of Performance, Concert, Exhibition
63. Credit Card Business
64. Real Estate Development Business
65. Insurance Agent Business
66. All Other Incidental Businesses
2. Important Business
General Travel Business(Travel Agency)
3. History of the Company
A. Changes after the establishment
Date
Important Changes
Oct. 25, 1993
Established Kookjin Travel Co., Ltd. (Capital: 350 million won)
55-4 Seosomun-dong, Jung-gu, Seoul
Dec. 01, 1995
Set the company policy in 'comprehensive wholesales' and launched 'Hana Tour', independent package brand, and commenced the agency sales
Nov. 28, 2000
Listed on KOSDAQ (commenced trading)
Nov. 10, 2006
Listed on LSE(London Stock Exchange)
Nov. 01, 2011
Listed on KOSPI
Jan. 01, 2012
CEO changed - SangHwan Park and HuynSyuk Choi
Mar. 25, 2016
CEO changed - SangHwan Park and JinKook Kim
Mar. 26, 2020
CEO changed - JinKook Kim and MiSun Song
B. Change of trade name
Date
Changes
Mar. 6, 1996
Changed the name from Kookjin Travel Co., Ltd. to Hana Tour Co., Ltd.
** Purpose is to unify the brand name and company image
C. Change of location for head office
Date
Location
Oct. 25, 1993
55-4 Seosomun-dong, Jung-gu, Seoul
Mar. 22, 1996
10F Inju Building, Tour cost fees-1 Seorin-dong, Jongro-gu, Seoul
Oct. 01, 1997
11F Hanmi Building, 1 Gonpyeong-dong, Jongro-gu, Seoul
Jun. 15, 2005
1 Gongpyeong-dong, Jongro-gu, Seoul
Jul. 01. 2013
HanaTour Bldg. 41, Insadon 5-gil, Jongno-gu, Seoul
D. Merger, spin off (merger), comprehensive stock swap, transfer, important business assignment and others
On March 2, 2020, the Group issued 2,323,000 shares through capital increase with consideration in third party allocations, and it's the largest shareholder (with a 16.67% stake rate) was changed to Harmonia 1 limited company.
4. Domestic Place of Business
Classification
Location
Main
BusinessHead Office
41, Insadong 5-gil, Jongno-gu, Seoul, Republic of Korea
General Travel Business
and
Ticketing
Central Office
39, Namdaemun-ro 9-gil, Jung-gu, Seoul, Republic of Korea
Sindorim Office
661, Gyeongin-ro, Guro-gu, Seoul, Republic of Korea
Seolleung Office
325, Teheran-ro, Gangnam-gu, Seoul, Republic of Korea
Nowon Office
460, Nohae-ro, Nowon-gu, Seoul, Republic of Korea
Wangsimni Office
326, Wangsimni-ro, Seongdong-gu, Seoul, Republic of Korea
Gimpo International
Airport Office
70, Haneul-gil, Gangseo-gu, Seoul, Republic of Korea
Busan Sales Office
216, Jungang-daero, Dong-gu, Busan, Republic of Korea
Haeundae Office
60, Centum buk-daero, Haeundae-gu, Busan, Republic of Korea
Kimhae
Airport Office
108, Gonghangjinip-ro, Gangseo-gu, Busan, Republic of Korea
Busan Sales Office
(Beomil-dong)
14, Jobang-ro, Dong-gu, Busan, Republic of Korea
Deokcheon Office
12, Gichal-ro, Buk-gu, Busan, Republic of Korea
Incheon Sales Office
59, Bupyeong-daero, Bupyeong-gu, Incheon, Republic of Korea
Airport Office
(Terminal1)
271, Gonghang-ro, Jung-gu, Incheon, Republic of Korea
Airport Office
(Terminal2)
446, Je2terminal-daero, Jung-gu, Incheon, Republic of Korea
Airport Office
(VIP Sending)
47, Gonghang-ro 424beon-gil, Jung-gu, Incheon, Republic of
Korea
Airport Office
(Commodity Support)
124, Yeongjong-daero, Jung-gu, Incheon, Republic of Korea
Bupyeong Office
7, Sijang-ro 51beon-gil, Bupyeong-gu, Incheon, Republic of Korea
Daegu Sales Office
648, Gukchaebosang-ro, Jung-gu, Daegu, Republic of Korea
Daejeon Sales Office
69, Dunsanseo-ro, Seo-gu, Daejeon, Republic of Korea
Gwangju Sales Office
136, Geumnam-ro, Buk-gu, Gwangju, Republic of Korea
Ulsan Sales Office
105, Gangbuk-ro, Jung-gu, Ulsan, Republic of Korea
Hwajeong Office
16, Hwajung-ro 104beon-gil, Deogyang-gu, Goyang-si, Gyeonggi-do, Republic of
Korea
Beomgye Office
180, Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Republic of Korea
Suwon Office
299, Hyowon-ro, Paldal-gu, Suwon-si, Gyeonggi-do, Republic of Korea
Bundang Office
42, Hwangsaeul-ro 360beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do,
Republic of Korea
Gangneung Slaes Office
317, Gangneung-daero, Gangneung-si, Gangwon-do, Republic of Korea
Chuncheon Slaes Office
110, Jungang-ro, Chuncheon-si, Gangwon-do, Republic of Korea
Wonju Sales Office
65, Neungnadong-gil, Wonju-si, Gangwon-do, Republic of Korea
Cheongju Sales Office
27, Biha-ro, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, Republic of
Korea
Cheonan Sales Office
48, Buldang 14-ro, Seobuk-gu, Cheonan-si, Chungcheongnam-do, Republic of
Korea
Jeonju Sales Office
269, Paldal-ro, Wansan-gu, Jeonju-si, Jeollabuk-do, Republic of Korea
Suncheon
Sales Office
34, Jangseonbaegi-gil, Suncheon-si, Jeollanam-do, Republic of Korea
Mokpo
Sales Office
282, Hugwang-daero, Samhyang-eup, Muan-gun, Jeollanam-do, Republic of
Korea
Pohang
Sales Office
3, Daei-ro 46beon-gil, Nam-gu, Pohang-si, Gyeongsangbuk-do, Republic of
Korea
Changwon
Sales Office
754, Changwon-daero, Seongsan-gu, Changwon-si, Gyeongsangnam-do,
Republic of Korea
Jinju Sales Office
12, Dongbu-ro 169beon-gil, Jinju-si, Gyeongsangnam-do, Republic of Korea
5. Status of Employees (As of December 31, 2019)
(Unit: person)
Classification
Office & Operation
Men
1,117
Women
1,383
Total
2,500
6. Organization
II. INFORMATION ON SHARES
1. Total Number of Stocks, Etc.
A. Total number of stocks (As of December 31, 2019)
(Unit: share)
Classification
Types of stocks
Remark
Common stock
Total
I. Total number of stocks to be issued
20,000,000
20,000,000
-
II. Total number of stocks issued to this point
11,616,185
11,616,185
-
III. Total number of stocks reduced to this point
-
-
-
1. Reduction of capital
-
-
-
2. Retirement of shares
-
-
-
3. Repayment of redeemed stocks
-
-
-
4. Others
-
-
-
IV. Total number of stocks issued (II-III)
11,616,185
11,616,185
-
V. Treasury stocks
549,253
549,253
-
VI. Outstanding stocks (IV-V)
11,066,932
11,066,932
-
B. Change of capital
(1) Status of capital increase
(Unit: share, won)
Date of stock issuance
Type of issuance
Contents of issued stocks
Types
Quantity
Par value
Issuance amount per stock
Remark
Oct. 25, 1993
-
Common stock
35,000
10,000
10,000
Capital for incorporation
Jun. 12, 1996
Capital increase with consideration (shareholder allotment)
Common stock
21.500
10,000
10,000
-
Jul. 25, 1997
Capital increase with consideration (shareholder allotment)
Common stock
35,840
10,000
10,000
-
Oct.01, 1997
-
Common stock
184,680
5,000
-
1 to 2 shares
Dec. 02, 1999
Capital increase with consideration (shareholder allotment)
Common stock
115,320
5,000
5,000
-
Dec. 23, 1999
Capital increase with consideration (shareholder allotment)
Common stock
60,000
5,000
10,000
-
May, 05, 2000
Stock Split
Common stock
3,600,000
500
-
1 to 10 shares
Nov. 16, 2000
Capital increase with consideration (shareholder allotment)
Common stock
900,000
500
2,850
-
Aug. 26, 2003
Capital increase without consideration
Common stock
3,764,034
500
-
-
Oct. 27,2004
Capital increase with consideration (shareholder allotment)
Common stock
76,322
500
11,850
-
Oct. 27,2004
Bonus Issue
Common stock
1,977,029
500
-
-
Nov. 11, 2006
Capital increase
Common stock
1,161,000
500
55,711
DR
(2) Status of capital decrease
(Unit: share, won)
Date of capital reduction
Type
Purpose
Contents of reduced stocks
Types
Quantity
Face value per stock
Amount of acquisition per stock
(for capital decrease for consideration)
Remark
-
-
-
-
-
-
-
-
C. Contents of scheduled change for capital
On March 2, 2020, the Group issued 2,323,000 shares through capital increase with consideration in third
party allocations, and it's the largest shareholder (with a 16.67% stake rate) was changed to Harmonia 1 limited
company.
2. Matters on Dividends
A. Matters on dividend for three recent fiscal year
Classification
27th Term
26th Term
Face value per stock (won)
500
500
(Consolidated) Current net income (million won)
(11,952)
10,587
(Separated) Current net income (million won)
(34,655)
13,396
(Consolidated) Net income per share (won)
(752)
791
Total amount of cash dividend (million won)
11,067
14,387
Total amount of stock dividend (million won)
-
-
Dividend payout ratio (%)
-
107.4
Yield rate of cash dividend (%)
Common stock
2.0
1.9
Preferred stock
-
-
Yield rate of stock dividend (%)
Common stock
-
-
Preferred stock
-
-
Cash dividend per share (won)
Common stock
1,000
1,300
Preferred stock
-
-
Stock dividend per share
Common stock
-
-
Preferred stock
-
-
III. CONTENTS OF THE BUSINESS
1. Summary of the Business
Until 2018, Korea's outbound volume recorded a CAGR of 14.8%, showing high growth rate over the years. This was a growth rate alongside with the growth that was suggested by UNWTO and the reason for this was economic, technical growth and due to the ease of visa regulations between the countries.
However, 2019 Korea's outbound market was affected by Japan as it was the leading destination for Korean travelers for the past 4 years. In the beginning of the year, there was a spread of Japanese Flu, Korea-China government agreement to increase the number of flights between the two countries which didn't happen, and in the second half there was a boycott of Japanese products including traveling to Japan due to the political tension between the two governments which had greater impacts to the outbound market.
As the result of these factors, Korea's outbound volume decreased 13.8% YOY, Hanatour's PKG volume was 2.9 million showing approximately 21.5% decrease over 2018 records, and Air Ticket volume was 2.2 million showing a slight increase of 2.8% YOY. All in all, Hanatour's blended YOY volume growth in 2019 was -12.5% with approximately 5.1 million customers.
Regional volume split was as follows: Southeast Asia 41.3%, Japan 38.8%, China 12.7%, Europe 8.3%, South Pacific 4.7% and Americas 2.5%. Each destinations' revenue contribution was Southeast Asia 40.2%, Europe 20.7%, China 13.2%, Japan 11.6%, South Pacific 7.1% and Americas 5.8%. The above Regional mix most likely represents the Korean outbound travel preference which prefer short haul destinations with Japan, Southeast Asia and China taking majority of overall package volume.
2. Market Share Rate
The market share rate of the travel business is classified based on the calculation in which the "Total Departures from HANATOUR" is divided by the "Total Departures of Korea." (Crews are excluded from the total departing persons)
The "Total Departure of Korea" is announce by Korea Tourism Organization (KNTO) and the "Total Departures from HANATOUR" is the figure which we report to Korean Association of Travel Agents (KATA).
<Market share rate based on the number of people>
Year
2019
2018
2017
Total
Departures
from
HANATOUR
Total
Departures
of Korea
Total
Departures
from
HANATOUR
Total
Departures
of Korea
Total
Departures
from
HANATOUR
Total
Departures
of Korea
5,143,867
26,920,415
5,878,013
26,928,389
5,634,020
24,837,011
Share rate
19.11%
21.83%
22.68%
3. Characteristics of the market
There are three special characteristics that make travel industry distinctive.
First, Travel business has seasonality. The pricing and marketing strategies change in accordance to seasons. However, due to 5-work-day policy and more maturing society and corporate cultures, the gap between the demands of seasons are shrinking which demanding changes to the products and strategies of travel agents.
Second, travel industry has time limits and has no inventory. This is in-line with air transportation, and hotel business. Products have to be sold on each day or the inventories will disappear automatically. Therefore it is very important to have marketing strategy and diversified portfolio of products in order to get rid of all the inventories that the company possesses.
Third, travel industry is easy to copy. Therefore, the company needs to find new elements that would differentiate the company among competitors.
Last, travel industry is volatile. Compared to other industries it is affected by political, diplomatic, various social issues, economic issue, diseases and other aspects as well.
4. New Business Development
Not Applicable.
Ⅳ. Status of the Parent Company and Affiliated Companies
1. Status of the parent company
Not applicable.
2. Status of affiliated companies
(Unit: Share, %)
Name of the Company
Business Contents
No. of Shares
Ownership Ratio (%)
Hanatour Business Service Inc.
Travel Business
400,000
100.00
Hanatour Jeju Service Inc.
Travel Business
618,830
77.35
Hanatour ITC Service Inc.
Travel Business
24,400,000
100.00
Tour Marketing Korea Service Inc.
Travel Business
140,000
70.00
Web Tour Service Inc.
Travel Business
8,777,380
76.99
Hana T&Media Inc.
Publishing
510,000
51.00
Korea Travel Service Inc.
Travel Business
600,000
60.00
WorldisTour Co., Ltd.
Travel Business
8,000,001
50.00
H&T Marketing Inc.
Advertising
240,000
80.00
Hana Shop Co., Ltd.
Retail Business
360,000
90.00
Tourtips Inc.
Information Provision
10,000,000
100.00
Mark Hotel Co., Ltd.
Hotel Business
40,000,000
100.00
Hana Finance Service Inc.
Finance Service
9,800,000
100.00
SM duty free Co., Ltd.
Duty Free Business
12,325,387
90.13
JR Invest Company Inc.
Real Estate Business
1,000,000
100.0
Hanatour USA Inc.
Travel Business
500,000
100.00
Hanatour Europe Ltd.
Travel Business
4,200
70.00
Hanatour PTE LTD.
Travel Business
2,142,000
100.00
Hanatour Japan Co., Ltd.
Travel Business
5,619,700
51.09
Hanatour CHINA
Travel Business
-
100.00
Hanatour PTY. Ltd.
Travel Business
600,000
100.00
Hanatour HongKong Co., Ltd.
Travel Business
5,000,000
100.00
Hanatour Taiwan Service Inc.
Travel Business
-
100.00
Beijing Hana Information Technology Co., Ltd.
Software Technical Development
-
100.00
Hanatour Service (M) Sdn.Bhd.
Travel Business
1,500,000
100.00
HANATOUR EU GMBH
Travel Business
-
100.00
CAMLAO HANATOUR CO., LTD.
Travel Business
300,000
100.00
HANATOUR VIETNAM COMPANY LIMITED
Travel Business
-
85.00
HANATOUR PHILIPPINES CORP.
Travel Business
827,980
96.28
HNT ITALIA-SOCIETA' A
RESPONSAVILITA' LIMITATA
Travel Business
-
-
3. Concurrent status of the executive management
Executive management
Concurrent Company
Name
Position
Company Name
Position
Assigned Task
SangHwan Park
Chairman, Chief Executive Officer and Director
HANATOUR PTE LTD.
Chief Executive Officer and Director
General Management
Hotel&Air
Co., Ltd.
Director
General Management
HeeSeok Kweon
Vice Chairman, Director
Hanatour ITC Service Inc.
Chief Executive Officer and Director
General Management
Hotel&Air
Co., Ltd.
Director
General Management
JinKook Kim
Chief Executive Officer and Director
Web Tour Service Inc.
Non-executive Director
General Management
Hanatour China
Director
General Management
Hotel&Air
Co., Ltd.
Director
General Management
Ⅴ.SUMMARY OF FINANCIAL DATA
* We've applied K-IFRS 1115 form 2018 and rewrote 2017 and 2016 Financial Results using K-IFRS 1115
1. Financial results
(In thousand won, except per share amounts)
Classification
27th Term
26th Term
25th Term
Sales
462,940,363
542,073,146
535,154,599
Operating Expenses
457,256,969
515,443,456
488,051,660
Operating Income
5,683,395
26,629,690
47,102,938
Profit Before Tax
(31,876,068)
21,249,687
45,236,097
Income Tax Expense
2,779,238
7,853,355
18,984,305
Net Income
(34,655,306)
13,396,332
26,251,793
Net Income per Share(Won)
(3,131)
1,210
2,372
2. Financial position
(In thousand won)
Classification
27th Term
25th Term
24rd Term
Current Assets
163,151,889
265,598,584
297,911,223
Non-Current Assets
295,927,124
207,107,324
183,373,200
Total Assets
459,079,014
472,705,908
481,284,424
Current Liabilities
226,927,968
287,134,993
292,020,444
Long-term Liabilities
98,159,130
3,643,375
4,132,373
Total Liabilities
325,087,098
290,778,368
296,152,817
Capital Stock
5,808,093
5,808,093
5,808,093
Other Paid-in Capital
58,700,030
58,700,030
58,700,030
Elements of Other Shareholder's Equity
(9,097)
(9,097)
(815,269)
Retained Earnings
69,492,890
117,428,515
121,438,753
Total Shareholder's Equity
133,991,916
181,927,541
185,131,606
Total Liabilities
and Shareholder's Equity
459,079,014
472,705,908
481,284,424
Ⅵ. RISK FACTORS
Refer to III - 1. Summary of the Business
Ⅶ. MANAGEMENT
Full-time
/ Part-time
Name
Position
Assigned Task
Full-time
SangHwan Park
Chairman,
Chief Executive Officer and Director
General Management
Full-time
HeeSeok Kweon
Senior Vice Chairman, Director
General Management
Full-time
JinKook Kim
Chief Executive Officer and Director
General Management
Part-time
JeongWoo Byun
Auditor, Outside Director
Outside Director
Part-time
JangSuk Han
Auditor, Outside Director
Outside Director
Part-time
GunHo Cho
Auditor, Outside Director
Outside Director
Ⅷ. LIST OF MAJOR SHAREHOLDERS
Shareholder
Number of shares
Percentage
Sanghwan Park
and 30 people with a special relationship
1,720,112
14.80%
HANATOUR INC.
549,253
4.73%
Ⅸ. CURRENT STATUS OF INVESTMENTS
1. Domestic
Name of the Company
Ownership Company
Ownership Ratio (%)
No. of Shares
Hanatour Business Service Inc.
HANATOUR Service Inc.
100.00
400,000
Hana Tourist Inc.
HANATOUR Service Inc.
30.23
906,981
Hanatour Jeju Service Inc.
HANATOUR Service Inc.
77.35
618,830
Hanatour ITC Service Inc.
HANATOUR Service Inc.
100.00
24,400,000
Tour Marketing Korea Service Inc.
HANATOUR Service Inc.
70.00
140,000
OK Tour Service Inc.
HANATOUR Service Inc.
48.92
9,784
Web Tour Service Inc.
HANATOUR Service Inc.
76.99
8,777,380
Hana T&Media Inc.
HANATOUR Service Inc.
51.00
510,000
Korea Travel Service Inc.
HANATOUR Service Inc.
60.00
600,000
WorldisTour Co., Ltd.
HANATOUR Service Inc.
50.00
8,000,001
H&T Marketing Inc.
HANATOUR Service Inc.
80.00
240,000
Hana Shop Co., Ltd.
HANATOUR Service Inc.
90.00
360,000
Nextour Co., Ltd.
WEBTOUR Co., Ltd.
100.00
40,000
Hotel&Air Co., Ltd.
HANATOUR Service Inc.
50.00
1,000,000
Hotelnfly, INC
HANATOUR Service Inc.
19.90
398,000
Tourtips Inc.
HANATOUR Service Inc.
100.00
10,000,000
Center Mark Hotel Inc.
HANATOUR ITC INC.
50.00
1,000,000
JR Invest Company Inc.
HANATOUR Service Inc.
100.00
1,000,000
Mark Hotel Co., Ltd.
HANATOUR Service Inc.
100.00
40,000,000
Hana Finance Service Inc.
HANATOUR Service Inc.
100.00
9,800,000
SM duty free Co., Ltd.
HANATOUR Service Inc.
90.13
12,325,387
Triple Corp.
TOURTIPS INC.
3.84
6,000
Mohajiplatform
TOURTIPS INC.
100.00
100,000
Hanatong Co., Ltd.
HANATOUR Service Inc.
50.00
-
CELINO INC
HANATOUR Service Inc.
50.00
300,000
K Culture Industry Co., Ltd.
HANATOUR Service Inc.
40.00
-
YDH LTD
HANATOUR Service Inc.
20.00
-
2. Overseas
Name of the Company
Ownership Company
Region
Ownership Ratio (%)
No. of Shares
Hanatour USA Inc.
HANATOUR Service Inc.
LA
100.00
500,000
Hanatour Europe Ltd.
HANATOUR Service Inc.
London
70.00
4,200
Hanatour PTE LTD.
HANATOUR Service Inc.
Singapore
100.00
2,142,000
Hanatour Japan Co., Ltd.
HANATOUR Service Inc.
Japan
51.09
5,619,700
U.I Sightseeing Bus LLC
HANATOUR JAPAN CO., LTD
Japan
100.00
1,900
Hanatour CHINA
HANATOUR Service Inc.
China
100.00
-
Hanatour PTY. Ltd.
HANATOUR Service Inc.
Australia
100.00
600,000
Hanatour HongKong Co., Ltd.
HANATOUR Service Inc.
Hong Kong
100.00
5,000,000
Hanatour Taiwan Service Inc.
HANATOUR Service Inc.
Taiwan
100.00
-
Hanatour Europe s.r.l
HANATOUR Service Inc.
Italy
50.00
5,250
Allegrox TM Hotel
HANATOUR JAPAN CO., LTD
Japan
100.00
396
Star Shop&Line
HANATOUR JAPAN CO., LTD
Japan
100.00
1,800
Beijing Hana Information Technology Co., Ltd.
HANATOUR Service Inc.
China
100.00
-
Hanatour Service (M) Sdn.Bhd.
HANATOUR Service Inc.
Malaysia
100.00
1,500,000
Hanatour Janpan System Vietnam
HANATOUR JAPN CO., LTD
Vietnam
100.00
-
Beijing Yitu International Travel Service Co., Ltd
HANATOUR Service Inc.
China
20.00
-
HANATOUR EU GMBH
HANATOUR Service Inc.
Germany
100.00
-
CAMLAO HANATOUR CO., LTD.
HANATOUR Service Inc.
Cambodia
100.00
300,000
HANATOUR VIETNAM COMPANY LIMITED
HANATOUR Service Inc.
Vietnam
85.00
-
HANATOUR PHILIPPINES CORP.
HANATOUR Service Inc.
Philippines
96.28
827,980
VISION TOUR, INC.
Hanatour USA Inc.
LA
100.00
300,000
HANA (ZHANGJIAJIE) TOUR CO., LTD
HANATOUR CHINA
Zhangjiajie
54.00
-
HANA (SHANGHAI) TOUR CO., LTD
HANATOUR CHINA
Shanghai
65.00
-
TMARK HOTEL VATICANO S.R.L
HANATOUR EUROPE LTD
Roma
51.00
25,500
HANA (QINGDAO) TOUR CO., LTD
HANA TOUR CHINA
Qingdao
65.00
-
HANA (XIAN) TOUR CO., LTD
HANA TOUR CHINA
Xian
65.00
-
HANA (GUILIN) TOUR CO., LTD
HANA TOUR CHINA
Guilin
65.00
-
HANA Zhuhai Marketing & Network Co., Ltd
HANATOUR HONGKON CO., LTD.
Zhuhai
100.00
-
HNT ITALIA - SOCIETA' A
RESPONSABILITA' LIMITATA
HANATOUR Service Inc.
Roma
51.00
-
Ⅹ. MAJOR CREDITORS
Not applicable.
XI. IMPORTANT EVENTS AFTER THE SETTLEMENT OF
ACCOUNTS PERIOD
(1) Hanatour ITC Service Inc. which is one of subsidiaries of the Group with a 100% stakes made 7,000,000
common shares reduction of capital stock with consideration on January 29, 2020
(2) On March 2, 2020, the Group issued 2,323,000 shares through capital increase with consideration in third
party allocations, and it's the largest shareholder (with a 16.67% stake rate) was changed to Harmonia 1 limited company.
(3) After the end of the reporting period, the Group has faced uncertainty of economic activities and economic
deterioration due to concerns over the long-term and spread of Corona19(COVID-19). For the field of travels and travel-related businesses, Corona19's spread has resulted in a number of cancellations and decreases in new travel reservations, and increased uncertainty about future revenue and future cash flow. However, because the ultimate effect of the situation from this uncertainty on the Group's financial position is now unpredictable, the Group's current consolidated financial statement does not reflect this effect.
XII. OTHER IMPORTANT FACTS ABOUT THE BUSINESS
None.
Independent Auditors' Report
Based on a report originally issued in Korean
The Board of Directors and Shareholders
Hanatour Service Inc.:
Opinion
We have audited the consolidated financial statements of Hanatour Service Inc. and its subsidiaries (the "Group"), which comprise the consolidated statements of financial position as of December 31, 2019 and 2018, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards ("K-IFRS").
Basis for Opinion
We conducted our audits in accordance with Korean Standards on Auditing (KSAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial statements and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
The engagement partner on the audit resulting in this independent auditors' report is Hyun-Jin Chung.
KPMG Samjong Accounting Corp.
Seoul, Korea
March 18, 2020
This report is effective as of March 18, 2020, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Financial Position
As of December 31, 2019 and 2018
(In thousands of won)
2019
2018
Assets
Cash and cash equivalents
W
110,846,773
157,699,693
Short-term financial instruments
105,607,931
127,966,881
Trade receivables
88,143,088
97,039,691
Other receivables
9,503,873
7,123,172
Finance lease receivables
1,911,235
44,282
Inventories
33,843,943
53,074,880
Advance payments
31,064,346
32,262,902
Other current assets
10,599,262
10,598,185
Other financial assets
8,877,273
-
Current tax assets
517,328
686,690
Assets held for sale
5,134,924
5,229,149
Current financial assets at FVTPL
2,181,987
5,985,926
Total current assets
408,231,963
497,711,451
Non-current financial assets at FVTPL
4,256,975
6,451,694
Financial assets at FVOCI
1,317,191
918,120
Investments in associates and joint ventures
6,168,614
10,106,990
Long-term finance lease receivables
1,926,002
118,168
Long-term other receivables
3,094,053
-
Investment property, net
25,708,777
22,095,166
Property and equipment, net
146,338,304
109,529,904
Right-of-use assets
323,826,602
-
Intangible assets
40,533,487
22,086,411
Long-term advance payments
4,000,000
94,000
Other financial assets
31,242,031
36,953,155
Deferred tax assets
10,769,354
7,756,731
Other non-current assets
142,505
2,299,961
Total non-current assets
599,323,895
218,410,300
1,007,555,858
716,121,751
Total assets
W
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Financial Position, Continued
As of December 31, 2019 and 2018
(In thousands of won)
2019
2018
Liabilities
Trade payables
W
66,698,743
99,718,809
Other payables
40,764,796
52,496,300
Income tax payables
3,784,025
3,596,862
Deposits received for travel
104,370,542
133,950,763
Advances received
22,300,072
26,046,337
Short-term borrowings
90,837,505
69,617,239
Current portion of long-term borrowings
3,389,707
2,295,649
Finance lease liabilities
47,131,157
2,768,848
Provisions
490,586
404,754
Other financial liabilities
3,774,508
3,726,934
Other current liabilities
23,960,522
18,953,087
Liabilities held for sale
-
14,246
Total current liabilities
407,502,163
413,589,828
Long-term other payables
8,287,017
11,054,850
Long-term borrowings
88,668,268
10,381,719
Debentures
1,363,052
2,286,089
Long-term provisions
1,856,401
1,687,053
Long-term finance lease liabilities
279,690,103
35,071,512
Provision for long-term employee benefits
1,945,053
1,783,010
Other financial liabilities
202,000
62,453
Other non-current liabilities
162,353
325,031
Total non-current liabilities
382,174,247
62,651,717
Total liabilities
789,676,410
476,241,545
Equity
Capital stock
5,808,093
5,808,093
Other contributed capital
77,487,067
77,349,083
Components of other capital
538,389
(1,532,526)
Retained earnings
96,937,522
118,245,244
Equity attributable to the owners of
the Parent Company
180,771,071
199,869,894
Non-controlling interests
37,108,378
40,010,312
Total equity
217,879,449
239,880,206
Total liabilities and equity
W
1,007,555,858
716,121,751
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive IncomeFor the years ended December 31, 2019 and 2018
(In thousands of won, except earnings per share data)
2019
2018
Operating revenue
W
763,194,958
828,273,952
Operating expense
757,258,615
803,404,831
Bad debt expense
5,625,054
3,448,001
Other operating expense
751,633,561
799,956,830
Operating income
5,936,343
24,869,121
Interest income by effective interest method
3,092,399
3,646,527
Other financial income
888,325
164,869
Financial expense
10,807,760
1,468,200
Loss from investment in associates and joint ventures
(2,795,157)
(480,313)
Other income
16,195,176
10,055,784
Other expense
18,187,807
14,451,075
Income before income taxes
(5,678,480)
22,336,713
Income taxes
6,273,372
11,749,916
Net income (loss)
W
(11,951,852)
10,586,797
Other comprehensive income after tax expense
Items that will never be reclassified to profit of loss:
Loss on valuation financial assets at FVOCI
(426,975)
(198,442)
Items that are or may be reclassified subsequently
to profit of loss:
Changes in valuation of equity-accounted investees, net
12,937
(38,447)
Gain (loss) on foreign operations translation, net
3,649,364
4,002,589
Total items that are or may be reclassified
subsequently to profit of loss
3,235,326
3,765,700
Total comprehensive income
W
(8,716,526)
14,352,497
Net income attributable to:
Owners of the Parent Company
(8,027,403)
8,749,373
Non-controlling interests
(3,924,448)
1,837,424
W
(11,951,851)
10,586,797
Comprehensive income attributable to:
Owners of the Parent Company
(5,956,488)
10,778,868
Non-controlling interests
(2,760,037)
3,573,629
W
(8,716,525)
14,352,497
Earnings per share
Basic earnings per share (in won)
(725)
791
Diluted earnings per share (in won)
W
(725)
791
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2019 and 2018
(In thousands of won)
Capital Stock
Other contributed capital
Components of other capital
Retained earnings
Non-controlling interests
Total shareholders' equity
January 1, 2018
W
5,808,093
80,560,685
(4,368,194)
126,902,441
36,823,386
245,726,411
Adjustment on initial application
-
-
806,173
(806,173)
-
-
Adjusted balance at January 1, 2018
5,808,093
80,560,685
(3,562,021)
126,096,268
36,823,386
245,726,411
Dividends
-
-
-
(8,853,545)
-
(8,853,545)
Interim dividends
-
-
-
(7,746,852)
-
(7,746,852)
Dividends of subsidiaries
-
-
-
-
(1,564,570)
(1,564,570)
Discount on stock issuance
-
-
-
-
(48,425)
(48,425)
Stock compensation expense
-
12,322
-
-
11,558
23,880
Net income
-
-
-
8,749,373
1,837,424
10,586,797
Gain on foreign operations
translation
-
-
2,221,597
-
1,780,992
4,002,589
Changes in valuation of
equity accounted investees
-
-
(38,447)
-
-
(38,447)
oss on valuation financial
assets at FVOCI
-
-
(153,655)
-
(44,787)
(198,442)
Acquisition of treasury stock
-
(783,223)
-
-
(1,285,957)
(2,069,180)
Paid-in capital increase of
subsidiaries
-
(2,331,223)
-
-
2,391,213
59,990
Others
-
(109,478)
-
-
109,478
-
December 31, 2018
W
5,808,093
77,349,083
(1,532,526)
118,245,244
40,010,312
239,880,206
January 1, 2019
W
5,808,093
77,349,083
(1,532,526)
118,245,244
40,010,312
239,880,206
Dividends
-
-
-
(6,640,159)
-
(6,640,159)
Interim dividends
-
-
-
(6,640,159)
-
(6,640,159)
Dividends of subsidiaries
-
-
-
-
(1,507,428)
(1,507,428)
Stock compensation expense
-
155,749
-
-
146,064
301,813
Net income
-
-
-
(8,027,404)
(3,924,448)
(11,951,852)
Gain on foreign operations
translation
-
-
2,225,621
-
1,423,743
3,649,364
Changes in valuation of
equity accounted investees
-
-
12,937
-
-
12,937
Loss on valuation financial
assets at FVOCI
-
-
(167,643)
-
(259,332)
(426,975)
Acquisition of treasury stock
-
(416)
-
-
(534)
(950)
Paid-in capital increase of
Subsidiaries
-
(17,349)
-
-
17,349
-
Changes in scope of consolidation
-
-
-
-
1,202,651
1,202,651
December 31, 2019
W
5,808,093
77,487,067
538,389
96,937,522
37,108,377
217,879,448
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2019 and 2018
(In thousands of won)
2019
2018
Cash flows from operating activities
Net income
W
(11,951,852)
10,586,797
Additions of expenses not involving cash outflows and others
125,395,547
57,970,118
Deduction of incomes not involving cash inflows and others
(9,150,771)
(5,503,101)
Movements in operating assets and liabilities:
Increase (decrease) in trade receivables
7,011,917
(3,405,726)
Decrease (increase) in other receivables
667,325
(1,056,388)
Decrease in inventories
17,324,541
4,707,602
Increase in advance payments
(2,650,065)
(7,054,711)
Decrease (increase) in long-term advance payments
(9,472,559)
1,906,000
Increase in other current assets
(438,816)
(2,686,544)
Increase in other non-current assets
(508,765)
(8,020)
Decrease in trade payables
(32,701,319)
(4,121,028)
Decrease in other payables
(3,324,301)
(1,196,702)
Increase (decrease) in deposits received for travel
(29,632,734)
6,840,330
Increase (decrease) in advances received
(3,720,082)
2,094,463
Increase (decrease) in other financial liabilities
4,289,423
(144,272)
Decrease in other current liabilities
(7,376,238)
(9,040,406)
Decrease in provisions
(1,439,177)
(1,476,967)
Increase in long-term other payables
2,711,288
556,418
Decrease in other long-term employee benefit
(155,500)
(110,000)
44,877,862
48,857,863
Interest expense paid
(10,926,055)
(1,249,047)
Interest income received
3,107,324
3,417,042
Dividend income received
512,010
119,158
Income taxes paid
(8,929,854)
(30,929,031)
Net cash provided by operating activities
W
28,641,287
20,215,985
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
For the years ended December 31, 2019 and 2018
(In thousands of won)
2019
2018
Cash flows from investing activities
Cash inflows from investing activities:
Decrease in short-term financial instruments
W
269,317,824
88,807,714
Decrease in other receivables
466,260
61,067
Disposal of financial assets at FVTPL
10,052,783
9,426,373
Disposal of investment in associates and joint venture
537,160
1,313,240
Capital reduction of associates and joint venture
5,201,270
-
Disposal of property and equipment
18,146,478
803,047
Disposal of intangible assets
5,489
22,871
Dispoal of intangible assets being acquired
2,773
-
Decrease in finance lease receivables
2,213,198
686,050
Decrease in other financial assets
3,566,715
2,209,249
Cash outflows for investing activities:
Increase in short-term financial instruments
248,239,459
195,048,977
Increase in other receivables
6,306
449,276
Acquisition of financial assets at FVTPL
7,488,200
10,684,600
Acquisition of financial assets at FVOCI
804,240
598,155
Acquisition of investment in associates and joint venture
5,064,000
69,766
Acquisition of property and equipment
110,882,808
12,882,813
Acquisition of Investment property
6,924,548
222,081
Acquisition of intangible assets
28,512,859
6,602,327
Acquisition of investment subsidiaries
-
50,000
Acquisition of prepaid lease assets.
3,498,000
-
Increase in other financial assets
10,818,123
7,711,283
Net cash provided by (used in) investing activities
W
(112,728,593)
(130,989,667)
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
For the years ended December 31, 2019 and 2018
(In thousands of won)
2019
2018
Cash flows from financing activities
Cash inflows from financing activities:
Proceeds from short-term borrowings
W
216,929,251
82,541,533
Proceeds from long-term borrowings
80,576,671
6,672,390
Proceeds from debentures
-
944,170
Paid-in capital increase of subsidiaries
1,202,651
59,990
Cash outflows for financing activities:
Repayment of short-term borrowings
199,112,653
24,735,331
Repayment of current portion of long-term borrowings
2,677,044
6,537,275
Repayment of long-term borrowings
-
192,719
Repayment of finance lease liabilities
53,541,985
1,660,047
Acquisition of treasury stocks
950
2,034,645
Payment of stock issuance expense
-
48,425
Payment of dividends
14,787,746
18,151,302
Net cash provided by (used in) financing activities
28,588,195
36,858,339
Reclassification to assets and liabilities held for sale
7,125,967
255,165
Net increase in cash and cash equivalents
(48,373,143)
(73,660,178)
Cash and cash equivalents at beginning of year
157,699,693
228,389,932
Effect of exchange rate change
1,520,222
2,969,939
Cash and cash equivalents at end of year
W
110,846,773
157,699,693
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDFR FIFLISDIFFII
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