WWPKG 2016/2017 Third Quarter Net Profit Amounted to HK$2.7 Million

The Group will continue to focus on further developing and launching new itineraries for existing tour destinations and promoting brand awareness

HONG KONG--()--Financial Highlights

  Unaudited

3 months ended 31 Dec

  Unaudited

9 months ended 31 Dec

HK$‘000   2016   2015   2016   2015
Revenue 115,069   125,580 282,583   342,733
Sales of package tours 113,069 122,703 276,817 336,080
Margin income from sales of FIT products 807 1,996 2,215 3,790
Margin income from sales of ancillary travel related products and services

1,193

881

3,551

2,863

Gross Profit 21,153 19,598 40,573 62,949
Profit and total comprehensive income for the period attributable to owners of the Company

2,695

3,733

(12,370)

18,277

Basic earnings per share(HK cents) 0.90 1.24 (4.12) 6.09
 

WWPKG Holdings Company Limited (“WWPKG”, together with its subsidiaries, the “Group”; stock code: 8069), a leading travel agent in Hong Kong, announced its results for the 9 months ended 31 December 2016. During the period, WWPKG recorded total revenue of approximately HK$282.6 million and a loss and total comprehensive loss of approximately HK$12.4 million.

For the 3 months ended 31 December 2016, WWPKG recorded total revenue of approximately HK$115.1 million and a profit attributable to owners of the Company amounted to approximately HK$2.7 million. After excluding the listing expenses of approximately HK$1.3 million, the profit and total comprehensive income for the period increased 5.3% to approximately HK$4.0 million, which was mainly due to the negative impact of the Kumamoto Earthquake subsided, the depreciation of Japanese Yen had a positive impact on the Group’s land costs and also led to the increase in demand of package tours bound for Japan particularly, and the largest supplier of the Group agreed to reduce the air ticket prices of several destinations in Japan.

Cost of sales and gross profit

As Japanese Yen against Hong Kong Dollar began to depreciate in October 2016, the number of customers enrolled in our package tours bound for Japan during the 3 months ended 31 December 2016 increased by 2.7% year-on-year.

The Group’s cost of sales mainly represents the direct costs incurred for our sales of package tours, which primarily consists of airfare costs, hotel tariffs, land operator costs, local transportation costs, meal expenses and admission ticket costs. During the 3 months ended 31 December 2016, the Group’s cost of sales decreased by 11.4% year-on-year to approximately HK$93.9 million, mainly due to the depreciation of Japanese Yen had a positive impact on the Group’s land costs, and the largest supplier of the Group agreed to reduce the air ticket prices of several destinations in Japan from 13 September 2016 until 25 January 2017, which in turn reduced the Group’s air fare cost for 2016/2017Quarter by 23.2% year-on-year.

Selling expenses

Selling expenses mainly consist of (i) advertising and promotion expenses, such as sponsoring television travel programmes and films, online and offline media advertisements, participating in tourism fairs and organising travel seminars, (ii) credit card and debit card charges in respect of payments from customers with credit cards and Electronic Payment Services, and (iii) rental and related expenses for our branches.

For the 3 months ended 31 December 2016, the Group’s selling expenses increased by 8.4% to approximately HK$5.4 million, mainly due to TV sponsorship.

Future Prospects

The Shares of the Group were successfully listed on GEM on 12 January 2017. We believe that such public listing status on the Stock Exchange will help advertise our Group to potential customers and enhance our corporate profile and credibility with the public and business partners. This in turn will strengthen our competitiveness and benefit our business performance and growth.

Going forward, with our long-established brand name, well-maintained business relationship with suppliers, ability to respond to adversities, and healthy net assets position, the Group will continue to execute our business strategy to expand both revenue streams and customer base by introducing new itineraries and activities from time to time in order to offer new travel experience to our customers, promoting our brand awareness through marketing campaigns, digital marketing and other conventional offline media advertisements, and strengthening and enhancing our sales channels including the enhancement of our online sales platform.

About WWPKG Holdings Company Limited

WWPKG is founded in June 1979. The Group has become one of the long-established and well-known local travel agents, with 37 years of business in the travel service industry in Hong Kong under the brand “縱橫遊”. Its major business is the provision of outbound package tours with particular focus in Japan bound tours. The Group also offers other travel products and services to customers including free independent traveller (FIT) products and other ancillary travel related products and services.

Currently, the Group sells products and services through a number of channels including four branches in Causeway Bay, Tsim Sha Tsui, Mongkok and Shatin, as well as online sales platform. The Group also sells tailor made tours to customers through MICE tour department, as well as sells travel products to other travel agents in Hong Kong and Macau.

According to the industry research report, the Group was the second largest travel agent in Hong Kong in terms of number of travellers for package tours bound for Japan in 2015, and ranked eighth in terms of number of travellers for outbound package tours amongst the travel agents in Hong Kong which provided outbound package tours in 2015.

Contacts

Stimulus Investor Relations Ltd.
Ms. Hill Ho / Ms. Jessica Choi
Tel: +852 3159 2944 / +852 3159 2916
hill.ho@stimulus-ir.com / jessica.choi@stimulus-ir.com

Contacts

Stimulus Investor Relations Ltd.
Ms. Hill Ho / Ms. Jessica Choi
Tel: +852 3159 2944 / +852 3159 2916
hill.ho@stimulus-ir.com / jessica.choi@stimulus-ir.com