31st Mar 2014 09:26
Annual Report
I. OUTLINE OF COMPANY
1. Purpose of Company
Purpose | Remark |
1) General travel business 2) Airline and ship ticket sales business 3) Souvenir Sales 4) Issuing of Selling Offers 5) Real estate dealing and lease 6) Optional Communication Business 7) Computer programming and supply 8) Mail order 9) Printing and publishing business 10) Issuing of Periodicals 11) The transportation business 12) Institute for traveling specialist 13) Internet (contents and supply, marketing) 14) E-commerce and information processing 15) Advertisement (Internet advertisement) 16) Information and communication 17) Homepage and web-hosting 18) Warehousing 19) Tourists Hotel and Lodging business 20) Operation and management of Tourists Hotels &Lodging and other incidental facilities 21) Tourists Hotels & Lodging facilities related business management 22) Domestic/Overseas real estate Investment , Operation and Property Management 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 Programs related cultural products & contents) 27) Digital Contents production and sales 28) Performing facilities Operation 29) Planning Performances 30) Character business 31) Exhibition and Events agent business 32) Internet Broadcasting 33) Tourism Development and Incidental Business(marketing counsel, planning and consulting) 34) Education service 35) Operation of E-learning lifelong Education facilities 36) Gift certificate sales 37) Wedding consulting 38) Amusement Park Operation 39) Comprehensive leisure facilities and operations management 40) Tourist Development Project 41) Comprehensive recreation 42) International Meeting Planning 43) Camping car 44) Bonded and tourism product vendors 45) Accommodation 46) Accommodation reservation Service 47) Portal and Internet Information Service 48) Franchisees 49) Restaurants 50) Shopping Center leasing and sublease on a deposit basis business 51) Ticket sales related to Culture, Arts, Sports Events 52) Database Development and sales related to Culture, Arts, Sports 53) Investment of Cultural projects including Performances and film production, 54) Organization of Events and Sponsors 55) All rights reserved performance Import and agent business 56) Copyright and neighboring rights of copyright agent business 57) Membership sales and brokerage arrangements 58) Study-Abroad agent business 59) Lifelong education facilities operating 60) All other incidental businesses |
2. History of Company
A. Changes after the establishment
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 |
B. Change of trade name
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
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 |
D. Merger, spin off (merger), comprehensive stock swap, transfer, important business assignment and others
The company has no fact of merger or business assignment since the company establishment to this date of submitting this report.
3. Total Number of Stocks, Etc.
A. Total number of stocks
(As of December 31, 2013)
(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. Capital deduction | - | - | ||
2. Retirement of earning | - | - | ||
3. Repayment of redeemed stocks | - | - | ||
4. Others | - | - | ||
IV. Total number of stocks issued (II-III) | 11,616,185 | 11,616,185 | ||
V. Equity stocks | 275,183 | 275,183 | ||
VI. Number of shares distributed (IV-V) | 11,341,002 | 11,341,002 | ||
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 | - | Face amount division |
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 | -
| Common stock | 3,600,000 | 500 | - | Face amount division |
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 | Capital increase without consideration | Common stock | 1,977,029 | 500 | - | - |
Jan. 25, 2006 | Exercise stock options | Common stock | 137,800 | 500 | 6,171 | - |
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
[No applicable change]
4. Matters on Dividends
A. Matters on dividend for three recent fiscal year
Classification | 21st Term | 20th Term | 19th Term | |
Face amount per stock (won) | 500 | 500 | 500 | |
Current net income (million won) | 32,658 | 29,962 | 19,515 | |
Net income per share (won) | 2,881 | 2,714 | 1,789 | |
Total amount of cash dividend (million won) | 12,511 | 11,125 | 9,778 | |
Total amount of stock dividend (million won) | - | - | - | |
Tendency of stock dividend (%) | 38.2 | 37.1 | 50.1 | |
Yield rate of cash dividend (%) | Common stock | 1.7 | 2.7 | 1.7 |
Preferred stock | - | |||
Yield rate of stock dividend (%) | Common stock | - | ||
Preferred stock | - | |||
Cash dividend per share (won) | Common stock | 1,100 | 900 | 1,000 |
Preferred stock | - | - | - | |
Stock dividend per share | Common stock | - | - | - |
Preferred stock | - | - | - | |
5. Status of Employees
(As of December 31, 2013)
(Unit: persons)
Classification | No. of employees | |||
Office | Operation | Etc | Total | |
Men | 573 | 551 | 37 | 1,161 |
Women | 844 | 54 | 113 | 1,011 |
Total | 1,417 | 605 | 150 | 2,172 |
6. Organization
CHAIRMAN & CEO - GLOBAL STRATEGIC PLANNING DIVISION
l
PRESIDENT & CEO
l
GLOBAL MANAGEMENT DIVISION , FINANCE DIVISION , GLOBAL GENERAL SALES DIVISION
l
AGENCY SALES DIVISION , OVERSEAS BUSINESS DIVISION
II. CONTENTS OF BUSINESS
1. Summary of Business
We, HANATOUR Service Inc. are the market-leading travel/leisure company in Korea with over 140,000 worldwide travel products selling through our website and approximately 8,000 retail travel agencies located across the country.
Our primary business consists of assembling outbound package tours for Korean travelers. The largest scale of operations in the market enables us to negotiate favorable rates with airline carriers, hotel operators and local transportation providers. We package air tickets, hotel rooms and land services and sell them to the end-user by distributing the products through our network of retail travel agents.
2013 marked a very challenging year for the whole Korean outbound market as numerous external factors have affected the go-abroad confidence of the Korean travelers. The first quarter had a very strong volume and sales growth mainly due to favorable lunar new year dates. However, from second quarter on external factors such as disease, plane accidents, political issues and natural disasters have kept customers from traveling overseas.
Such drawback events were not adequate enough to offset the overall growth of the outbound market. The number of outbound travelers in 2013 grew by 8.4% and reached the biggest number of travelers per year at 13.5 million. We have continued the trend of outgrowing the market in 2013 as well and managed 14.7% of package volume growth with 1.8 million customers, and 15.7% of total volume growth with 2.63 million customers. Despite all the challenges, we have managed to achieve the highest-ever volume in our history.
Southeast Asia, despite the tragic typhoon in Philippines and the political riots in Bangkok, continued keep its position as the biggest volume and revenue contributor at 34.7% and 35.6% respectively. With dramatic depreciation of the Japanese Yen, the demand to the country accelerated very rapidly in the first half of 2013. However, due continous concerns regard radio-activity issue in Japan and political conflict between Korea and Japan, the growth noticeably slowed down in the second half. Notably, Japan's volume growth was 44.9%, the highest of all the destinations but revenue contribution was not very impressive. This is due to decline in sellling price to the country which was the result of the increase in air supply - the fierce competition between the airlines resulted in decline of seat costs and were reflected on our selling prices.
By continuously developing new products and building on brand power, the company has managed to increase market share to 19.5% and maintained our status as the leading company in the travel industry. The company's goal is to successfully control cost of sales to improve margins. Also, the company will continue to study the customers' needs to evolve our products in order to continue to grow as the leader of the industry.
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).
Year | 2013 | 2012 | 2011 | |||
Persons | Total Departures of Korea | Total Departures from HANATOUR | Total Departures of Korea | Total Departures from HANATOUR | Total Departures of Korea | Total Departures from HANATOUR |
13,525,297 | 2,631,053 | 12,474,142 | 2,273,528 | 11,559,690 | 1,942,292 | |
Share rate | 19.45% | 18.23% | 16.80% | |||
3. Characteristics of the market
There are about 10,000 agents registered in Korea which account for 80% of the companies that are registered in the whole travel-related industry. The travel agents create about 50,000 jobs. In 1982, the travel business was converted from a license business to a registration business which resulted in increase of number of agents. Overseas traveling was completely liberalized in 1989 which brought explosive increase in number of travelers as well as agents. There are mom and pop agents focusing on network-customers, b2c agents focusing on newspaper advertising and walk-in marketing, and wholesale travel agents providing products to aforementioned agents.
There are three special characteristics that make travel industry distictive.
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 products are easily plagiarized. Travel products need to have special features since they are easily plagiarized in every way therefore it is more important in this industry to have own distinctive aspects as well as value.
Travel industry has limitless potential as is one of the three major industries in the 21st century along with IT and environment industry. WTO expects the world travel industry to grow on average of 4.1% per annum until 2020. In Korea, with the 5-working day system and dispersed vacation system, it opens up the advanced country-type vacation time.
4. Contents and prospect of new business and others
HANATOUR has set a vision to become a "Global Culture and Tourism Group". Our first attempt to diversify our business portfolio to achieve our vision, we have entered city-hotel business. Korean inbound market is growing rapidly and is expected to continue this form of growth until 2020. However the industry is facing serious shortages of hotel rooms which is proving to be the bottle-neck of the whole inbound business. The hotel business will prove to have a huge synergy with our existing inbound business and prove to be our next growth factor. Positive effects are expected from securing domestic hotel inventories such as improvement of our margin and sales power of Hanatour ITC as a leading inbound company. We are currently operating two hotels with total of 538 rooms and plan to expand to about 1,000 rooms by 2016.
III. FINANCIAL DATA
Notice to Readers
This report is effective as of March 13, 2014, the auditors' report date. Certain subsequent events or circumstances may have occurred between the auditors' report date and the time the auditors' report is read. Such events or circumstances could significantly affect the accompanying non-consolidated & consolidated financial statements and may result in modifications to the auditors' report.
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2013 AND DECEMBER 31, 2012
ASSETS | December 31, 2013 | December 31, 2012 | |||||
(In thousands of Korean won) | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | ￦ | 81,852,584 | ￦ | 93,015,665 | |||
Short-term financial instruments | 97,258,095 | 99,013,869 | |||||
Trade receivables | 61,095,270 | 46,109,536 | |||||
Other receivables | 15,200,897 | 10,113,319 | |||||
Inventories | 443,042 | 379,840 | |||||
Advanced payments | 19,420,839 | 30,019,428 | |||||
Other current assets | 3,135,753 | 2,608,596 | |||||
Current tax assets | 70,595 | 102,413 | |||||
Total current assets | 278,477,075 | 281,362,666 | |||||
NON-CURRENT ASSETS: | |||||||
Available for sale ("AFS") financial assets | 5,547,292 | 5,415,293 | |||||
Investment in associates and joint ventures | 20,305,785 | 5,003,404 | |||||
Investment property | 3,972,601 | 6,620,373 | |||||
Property and equipment | 34,817,158 | 28,550,978 | |||||
Intangible assets | 11,178,444 | 10,481,359 | |||||
Other financial assets | 16,555,223 | 10,131,758 | |||||
Deferred tax assets | 4,322,070 | 4,687,418 | |||||
Other non-current assets | 1,320,735 | 167,312 | |||||
Total non-current assets | 98,019,308 | 71,057,895 | |||||
Total assets | ￦ | 376,496,383 | ￦ | 352,420,561 | |||
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2013 AND DECEMBER 31, 2012
LIABILITIES AND SHAREHOLDERS' EQUITY | December 31, 2013 | December 31, 2012 | |||||
(In thousands of Korean won) | |||||||
CURRENT LIABILITIES: | |||||||
Trade payables | ￦ | 54,042,693 | ￦ | 44,729,135 | |||
Other payables | 14,207,306 | 18,157,208 | |||||
Income tax payable | 6,579,648 | 11,489,734 | |||||
Deposits received for travel | 65,940,047 | 54,884,547 | |||||
Advance receipts | 16,602,965 | 14,287,042 | |||||
Short-term borrowings | 6,908,653 | 11,597,875 | |||||
Current portion of long-term borrowings | 346,849 | 430,238 | |||||
Provision | 894,709 | 1,284,612 | |||||
Other financial liabilities | 2,475,866 | 2,281,368 | |||||
Other current liabilities | 12,813,658 | 10,420,586 | |||||
Total current liabilities | 180,812,394 | 169,562,345 | |||||
NON-CURRENT LIABILITIES: | |||||||
Long-term other payables | 1,656,515 | 976,776 | |||||
Long-term borrowings | 979,976 | 1,647,536 | |||||
Retirement benefit obligation | - | 15,944 | |||||
Provision for long-term employee benefits | 419,518 | 388,000 | |||||
Deferred income tax liabilities | 858 | 49,852 | |||||
Total non-current liabilities | 3,056,867 | 3,078,108 | |||||
Total liabilities | 183,869,261 | 172,640,453 | |||||
SHAREHOLDERS' EQUITY: | |||||||
Capital stock | 5,808,093 | 5,808,093 | |||||
Other contributed capital | 82,372,554 | 80,856,280 | |||||
Components of other capital | (791,446) | (187,151) | |||||
Retained earnings | 98,776,490 | 76,032,787 | |||||
Equity attributable to the owners of the Parent Company | 186,165,691 | 162,510,009 | |||||
Non-controlling interests | 6,461,431 | 17,270,099 | |||||
Total shareholders' equity | 192,627,122 | 179,780,108 | |||||
Total liabilities and shareholders' equity | ￦ | 376,496,383 | ￦ | 352,420,561 | |||
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 | 2012 | ||||||
(In thousands of Korean won, except per share amounts) | |||||||
OPERATING REVENUE | ￦ | 352,655,319 | ￦ | 307,854,268 | |||
OPERATING EXPENSE | 312,295,912 | 268,261,691 | |||||
OPERATING INCOME | 40,359,407 | 39,592,577 | |||||
Financial income | 5,256,585 | 5,323,590 | |||||
Financial expense | 245,148 | 298,193 | |||||
Profit and loss from investment in associates and joint ventures | (119,623) | (1,036,487) | |||||
Other revenue | 7,348,874 | 9,763,777 | |||||
Other expense | 3,750,484 | 3,409,480 | |||||
INCOME BEFORE INCOME TAX EXPENSE | 48,849,610 | 49,935,784 | |||||
INCOME TAX EXPENSE | 12,786,869 | 12,539,619 | |||||
NET INCOME | ￦ | 36,062,740 | ￦ | 37,396,165 | |||
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 | 2012 | ||||||
(In thousands of Korean won, except per share amounts) | |||||||
OTHER COMPREHENSIVE EXPENSES AFTER INCOME TAX EXPENSE: | ￦ | (761,461) | ￦ | (582,091)) | |||
Items that will not be reclassified to profit or loss: | - | (11,401) | |||||
Remeasurements of defined benefit plans | - | (11,401) | |||||
Items that may be reclassified to profit or loss: | (761,461) | (570,690) | |||||
Changes in valuation of equity-accounted investees, net | (82,072) | 44,264 | |||||
Loss on foreign operations translation, net | (611,302) | (614,954) | |||||
Loss on valuation of AFS | (68,087) | - | |||||
TOTAL COMPREHENSIVE INCOME | ￦ | 35,301,280 | ￦ | 36,814,074 | |||
NET INCOME ATTRIBUTABLE TO: | |||||||
Owners of the Parent Company | 33,956,679 | 35,307,039 | |||||
Non-controlling interests | 2,106,061 | 2,089,126 | |||||
36,062,740 | 37,396,165 | ||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO: | |||||||
Owners of the Parent Company | 33,352,384 | 34,813,686 | |||||
Non-controlling interests | 1,948,896 | 2,000,388 | |||||
35,301,280 | 36,814,074 | ||||||
EARNINGS PER SHARE ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY: | |||||||
Basic earnings per common share | ￦ | 2,989 | ￦ | 3,198 | |||
Diluted earnings per common share | ￦ | 2,963 | ￦ | 3,198 | |||
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
Capital stock | Other contributed capital | Components of other capital | Retained earnings | Non-controlling interests | Total | |||||||||||||
(In thousands of Korean won) | ||||||||||||||||||
January 1, 2012 | ￦ | 5,808,093 | ￦ | 59,596,909 | ￦ | 299,361 | ￦ | 50,556,316 | ￦ | 15,273,199 | ￦ | 131,533,878 | ||||||
Payment of cash dividend | - | - | - | (4,350,001) | - | (4,350,001) | ||||||||||||
Payment of interim cash dividend | - | - | - | (5,473,726) | - | (5,473,726) | ||||||||||||
Cash dividend of subsidiaries | - | - | - | - | (74,413) | (74,413) | ||||||||||||
Paid-in capital increase of subsidiaries | - | (52,841) | - | - | 56,116 | 3,275 | ||||||||||||
Disposal of treasury stock | - | 10,793,100 | - | - | - | 10,793,100 | ||||||||||||
Exercised stock option rights | - | 2,915,649 | - | - | - | 2,915,649 | ||||||||||||
Gain on disposal of treasury stock | - | 4,580,917 | - | - | - | 4,580,917 | ||||||||||||
Stock compensation expense | - | 3,022,545 | - | - | 14,809 | 3,037,354 | ||||||||||||
Net income | - | - | - | 35,307,039 | 2,089,126 | 37,396,165 | ||||||||||||
Loss on foreign business translation | - | - | (530,776) | - | (84,177) | (614,953) | ||||||||||||
Changes in valuation of equity-accounted investees | - | - | 44,264 | - | - | 44,264 | ||||||||||||
Actuarial loss on defined benefit plans | - | - | - | (6,841) | (4,561) | (11,402) | ||||||||||||
December 31, 2012 | ￦ | 5,808,093 | ￦ | 80,856,279 | ￦ | (187,151) | ￦ | 76,032,787 | ￦ | 17,270,099 | ￦ | 179,780,107 | ||||||
January 1, 2013 | ￦ | 5,808,093 | ￦ | 80,856,279 | ￦ | (187,151) | ￦ | 76,032,787 | ￦ | 17,270,099 | ￦ | 179,780,107 | ||||||
Payment of cash dividend | - | - | - | (5,651,151) | - | (5,651,151) | ||||||||||||
Payment of interim cash dividend | - | - | - | (5,706,651) | - | (5,706,651) | ||||||||||||
Cash dividend of subsidiaries | - | - | - | - | (197,042) | (197,042) | ||||||||||||
Stock issue expense of subsidiaries | - | (144,055) | - | - | - | (144,055) | ||||||||||||
Acquisition of treasury stock | - | (6,596,882) | - | - | - | (6,596,882) | ||||||||||||
Exercised stock option rights | - | 2,031,990 | - | - | - | 2,031,990 | ||||||||||||
Gain on disposal of treasury stock | - | 3,860,008 | - | - | - | 3,860,008 | ||||||||||||
Stock compensation expense | - | 2,366,767 | - | - | 16,346 | 2,383,113 | ||||||||||||
Net income | - | - | - | 33,956,679 | 2,106,061 | 36,062,740 | ||||||||||||
Loss on foreign business translation | - | - | (454,137) | - | (157,166) | (611,303) | ||||||||||||
Changes in valuation of equity- accounted investees | - | - | (82,071) | - | - | (82,071) | ||||||||||||
Loss on valuation of AFS financial assets | - | - | (68,087) | - | - | (68,087) | ||||||||||||
Additional acquisitions of investments in subsidiaries | - | (3,912) | - | - | (209,847) | (213,759) | ||||||||||||
Disposal of investments in subsidiaries | - | 2,359 | - | - | 2,641 | 5,000 | ||||||||||||
Changes in the scope of consolidation | - | - | - | - | (12,215,845) | (12,215,845) | ||||||||||||
Reorganization | - | - | - | 153,816 | (153,816) | - | ||||||||||||
Others | - | - | - | (8,990) | - | (8,990) | ||||||||||||
December 31, 2013 | ￦ | 5,808,093 | ￦ | 82,372,554 | ￦ | (791,446) | ￦ | 98,776,490 | ￦ | 6,461,431 | ￦ | 192,627,122 | ||||||
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 | 2012 | ||||||
(In thousands of Korean won) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Cash generated from operations: | |||||||
Net income | ￦ | 36,062,740 | ￦ | 37,396,165 | |||
Additions of expenses not involving cash outflows and others | 27,686,029 | 29,353,435 | |||||
Deduction of incomes not involving cash inflows and others | (6,288,711) | (7,452,899) | |||||
Movements in operating assets and liabilities: | |||||||
Increase in trade receivables | (17,301,885) | (10,799,248) | |||||
Increase in other account receivables | (4,913,119) | (1,112,812) | |||||
Increase in inventories | (63,235) | (27,358) | |||||
Decrease(increase) in advance payments | 4,088,574 | (7,127,957) | |||||
Increase in other current assets | (624,925) | (400,717) | |||||
Increase in other non-current assets | (1,149,093) | - | |||||
Increase (decrease) in trade payables | 9,154,239 | (15,298,233) | |||||
Increase (decrease) in other payables | (648,986) | 4,039,498 | |||||
Increase in deposits received for travel | 13,444,134 | 8,839,631 | |||||
Increase in advance receipts | 2,313,851 | 2,235,555 | |||||
Increase in other financial liabilities | 195,286 | 181,564 | |||||
Decrease in provisions | (866,927) | (803,197) | |||||
Increase (decrease) in other current liabilities | (2,160,017) | 1,603,556 | |||||
Increase (decrease) in long-term other payables | (151,662) | 234,498 | |||||
Decrease in retirement benefits obligations | - | (73,743) | |||||
Decrease in other long-term employee benefit | (61,000) | - | |||||
58,715,293 | 40,787,738 | ||||||
Interest expense paid | (198,588) | (156,530) | |||||
Interest income received | 5,285,833 | 4,961,555 | |||||
Dividend income received | 97,706 | 16,678 | |||||
Income taxes paid | (18,007,355) | (6,434,027) | |||||
￦ | 45,892,890 | ￦ | 39,175,414 | ||||
HANATOUR SERVICE INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 | 2012 | ||||||
(In thousands of Korean won) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Cash inflows from investing activities: | |||||||
Decrease in short-term financial instruments | ￦ | 97,032,200 | ￦ | 85,465,000 | |||
Decrease in financial assets at FVTPL | - | 1,500,000 | |||||
Decrease in other receivables | 3,417,071 | 1,546,534 | |||||
Disposal of AFS financial assets | 109 | 2,280 | |||||
Disposal of investment in subsidiaries | 405,255 | - | |||||
Disposal of investment in associates and joint venture | - | 388 | |||||
Disposal of investment property | - | 254,644 | |||||
Disposal of property and equipment | 390,838 | 562,778 | |||||
Disposal of intangible assets | 38,105 | - | |||||
Decrease in other financial assets | 1,337,215 | 2,149,359 | |||||
102,620,793 | 91,480,983 | ||||||
Cash outflows for investing activities: | |||||||
Increase in short-term financial instruments | 119,406,915 | 110,289,708 | |||||
Increase in other receivables | 5,574,621 | 3,389,692 | |||||
Acquisition of AFS financial assets | 250,000 | 5,000,000 | |||||
Acquisition of investment in associates and joint venture | 4,892 | 5,000,000 | |||||
Acquisition of investment property | - | 497,970 | |||||
Acquisition of property and equipment | 7,728,375 | 4,017,406 | |||||
Acquisition of intangible assets | 3,115,758 | 4,596,047 | |||||
Increase in other financial assets | 7,840,901 | 2,771,678 | |||||
(143,921,462) | (135,562,501) | ||||||
(41,300,668) | (44,081,518) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Cash inflows from financing activities: | |||||||
Disposal of treasury stock | - | 15,724,649 | |||||
Proceeds from short-term borrowings | 1,572,774 | 4,049,692 | |||||
Disposal of investment in subsidiaries | 5,000 | - | |||||
Proceeds from paid-in capital increase of subsidiaries | - | 3,275 | |||||
Exercised stock option rights | 7,030,703 | 3,873,682 | |||||
8,608,477 | 23,651,298 | ||||||
Cash outflows for financing activities: | |||||||
Acquisition of treasury stock | 6,596,882 | - | |||||
Payment of stock issuance expense | 144,055 | - | |||||
Acquisition of investment in subsidiaries | 213,759 | - | |||||
Repayment of short-term borrowings | 4,754,932 | 5,713,096 | |||||
Repayment of current portion of long-term borrowings | 387,442 | 487,364 | |||||
Payment of dividends | 11,554,844 | 9,898,140 | |||||
(23,651,913) | (16,098,600) | ||||||
(15,043,436) | 7,552,698 | ||||||
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS | (10,451,214) | 2,646,594 | |||||
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR |
93,015,665 | 91,205,775 | |||||
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (711,867) | (836,704) | |||||
CASH AND CASH EQUIVALENTS, AT END OF YEAR | ￦ | 81,852,584 | ￦ | 93,015,665 | |||
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2013 AND DECEMBER 31, 2011
December 31,2012 | December 31,2011 | |
(In thousands of Korean won) | ||
ASSETS | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | ￦ 93,015,665 | ￦ 91,205,775 |
Short-term financial instruments | 99,013,869 | 73,989,161 |
Financial assets at FVTPL | - | 1,491,650 |
Trade receivables | 46,109,536 | 37,670,302 |
Other receivables | 10,113,319 | 6,050,578 |
Inventories | 379,840 | 352,481 |
Advanced payments | 30,019,428 | 24,612,501 |
Other current assets | 2,608,596 | 2,358,869 |
Current tax assets | 102,413 | 161,621 |
Total current assets | 281,362,666 | 237,892,938 |
NON-CURRENT ASSETS: | ||
AFS financial assets | 5,415,293 | 472,317 |
Investment in associates and joint ventures | 5,003,404 | 1,004,691 |
Investment property | 6,620,373 | 6,385,410 |
Property and equipment | 28,550,978 | 28,292,994 |
Intangible assets | 10,481,359 | 9,026,924 |
Other financial assets | 10,131,758 | 9,776,689 |
Deferred income tax assets | 4,687,418 | 3,316,479 |
Other non-current assets | 167,312 | 180,478 |
Total non-current assets | 71,057,895 | 58,455,982 |
Total assets | ￦ 352,420,561 | ￦ 296,348,920 |
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2013 AND DECEMBER 31, 2012
ASSETS | December 31, 2013 | December 31, 2012 | |||||
(In thousands of Korean won) | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | ￦ | 52,466,287 | ￦ | 67,596,859 | |||
Short-term financial instruments | 83,243,000 | 70,993,000 | |||||
Trade receivables | 50,841,886 | 36,735,165 | |||||
Other receivables | 13,903,613 | 5,895,363 | |||||
Advance payments | 13,036,347 | 13,058,484 | |||||
Other current assets | 2,264,940 | 2,037,395 | |||||
Total current assets | 215,756,073 | 196,316,266 | |||||
NON-CURRENT ASSETS: | |||||||
Available for sale("AFS") financial assets | 5,526,068 | 5,415,168 | |||||
Investment in associates | 16,086,186 | 1,081,294 | |||||
Investment in subsidiaries | 40,060,877 | 47,758,621 | |||||
Investment property | 5,569,769 | 6,620,373 | |||||
Property and equipment | 27,039,104 | 25,212,579 | |||||
Intangible assets | 9,446,402 | 8,955,804 | |||||
Other financial assets | 8,341,264 | 5,591,550 | |||||
Deferred tax assets | 3,009,462 | 3,398,229 | |||||
Total non-current assets | 115,079,132 | 104,033,618 | |||||
Total assets | ￦ | 330,835,205 | ￦ | 300,349,884 | |||
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2013 AND DECEMBER 31, 2012
LIABILITIES AND SHAREHOLDERS' EQUITY | December 31, 2013 | December 31, 2012 | |||||
(In thousands of Korean won) | |||||||
CURRENT LIABILITIES: | |||||||
Trade payables | ￦ | 48,938,286 | ￦ | 53,649,689 | |||
Other payables | 8,489,350 | 7,423,929 | |||||
Income tax payable | 5,036,503 | 9,001,991 | |||||
Deposits received for travel | 61,856,455 | 51,462,497 | |||||
Advance receipts | 15,745,420 | 13,341,971 | |||||
Provision | 891,231 | 1,281,042 | |||||
Other financial liabilities | 2,659,024 | 2,710,260 | |||||
Other current liabilities | 11,065,447 | 8,243,661 | |||||
Total current liabilities | 154,681,716 | 147,115,040 | |||||
NON-CURRENT LIABILITIES: | |||||||
Provision for long-term employee benefits | 419,518 | 388,000 | |||||
Total non-current liabilities | 419,518 | 388,000 | |||||
Total liabilities | 155,101,234 | 147,503,040 | |||||
SHAREHOLDERS' EQUITY: | |||||||
Capital stock | 5,808,093 | 5,808,093 | |||||
Other contributed capital | 82,429,987 | 80,843,371 | |||||
Components of other capital | (68,519) | - | |||||
Retained earnings | 87,564,410 | 66,195,380 | |||||
Total shareholders' equity | 175,733,971 | 152,846,844 | |||||
Total liabilities and shareholders' equity | ￦ | 330,835,205 | ￦ | 300,349,884 | |||
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 | 2012 | ||||||
(In thousands of Korean won, except per share amounts) | |||||||
OPERATING REVENUE | ￦ | 297,598,302 | ￦ | 259,175,857 | |||
OPERATING EXPENSE | 261,057,917 | 224,454,834 | |||||
| |||||||
OPERATING INCOME | 36,540,385 | 34,721,023 | |||||
Financial income | 5,449,706 | 4,268,953 | |||||
Financial expense | 50,369 | 57,000 | |||||
Profit and loss from investment in associate and subsidiaries | (438,409) | (6,749) | |||||
Other revenue | 3,778,363 | 2,679,564 | |||||
Other expense | 2,316,035 | 2,005,182 | |||||
INCOME BEFORE INCOME TAX EXPENSE | 42,963,641 | 39,600,609 | |||||
INCOME TAX EXPENSE | 10,236,809 | 9,638,458 | |||||
NET INCOME | ￦ | 32,726,832 | ￦ | 29,962,151 | |||
OTHER COMPREHENSIVE EXPENSES AFTER INCOME TAX EXPENSE: | (68,518) | - | |||||
Items that will not be reclassified to profit or loss: | - | - | |||||
Items that may be reclassified to profit or loss: | (68,518) | - | |||||
Loss on valuation of AFS | (68,518) | - | |||||
TOTAL COMPREHENSIVE INCOME | ￦ | 32,658,314 | ￦ | 29,962,151 | |||
EARNINGS PER SHARE ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY: | |||||||
Basic earnings per common share | ￦ | 2,881 | ￦ | 2,714 | |||
Diluted earnings per common share | ￦ | 2,855 | ￦ | 2,714 | |||
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
Capital stock | Other contributed capital | Components of other capital | Retained earnings | Total | |||||||||||
| |||||||||||||||
January 1, 2012 | ￦ | 5,808,093 | ￦ | 59,590,859 | ￦ | - | ￦ | 46,056,956 | ￦ | 111,455,908 | |||||
Payment of cash dividend | - | - | - | (4,350,001) | (4,350,001) | ||||||||||
Payment of interim cash dividend | - | - | - | (5,473,726) | (5,473,726) | ||||||||||
Disposal of treasury stock | - | 10,793,100 | - | - | 10,793,100 | ||||||||||
Exercised stock option rights | - | 2,915,649 | - | - | 2,915,649 | ||||||||||
Gain on disposal of treasury stock | - | 4,580,916 | - | - | 4,580,916 | ||||||||||
Stock compensation expense | - | 2,962,847 | - | - | 2,962,847 | ||||||||||
Net income | - | - | - | 29,962,151 | 29,962,151 | ||||||||||
December 31, 2012 | ￦ | 5,808,093 | ￦ | 80,843,371 | ￦ | - | ￦ | 66,195,380 | ￦ | 152,846,844 | |||||
January 1, 2013 | ￦ | 5,808,093 | ￦ | 80,843,372 | ￦ | - | ￦ | 66,195,380 | ￦ | 152,846,844 | |||||
Payment of cash dividend | - | - | - | (5,651,151) | (5,651,151) | ||||||||||
Payment of interim cash dividend | - | - | - | (5,706,651) | (5,706,651) | ||||||||||
Acquisition of treasury stock | - | (6,596,882) | - | - | (6,596,882) | ||||||||||
Exercised stock option rights | - | 2,031,990 | - | - | 2,031,990 | ||||||||||
Gain on disposal of treasury stock | - | 3,860,007 | - | - | 3,860,007 | ||||||||||
Stock compensation expense | - | 2,291,500 | - | - | 2,291,500 | ||||||||||
Loss on valuation of AFS | - | - | (68,518) | - | (68,518) | ||||||||||
Net income | - | - | - | 32,726,832 | 32,726,832 | ||||||||||
December 31, 2013 | ￦ | 5,808,093 | ￦ | 82,429,987 | ￦ | (68,518) | ￦ | 87,564,410 | ￦ | 175,733,971 | |||||
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 | 2012 | ||||||
(In thousands of Korean won) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Cash generated from operations: | |||||||
Net income | ￦ | 32,726,832 | ￦ | 29,962,151 | |||
Additions of expenses not involving cash outflows and others | 23,160,637 | 22,512,973 | |||||
Deduction of incomes not involving cash inflows and others | (6,050,929) | (4,794,750) | |||||
Movements in operating assets and liabilities: | |||||||
Increase in trade receivables | (14,412,430) | (8,337,603) | |||||
Increase in other receivables | (6,168,615) | (447,241) | |||||
Decrease(increase) in Advance payments | (253,727) | 1,160,477 | |||||
Increase in other current assets | (227,545) | (346,746) | |||||
Decrease in trade payables | (4,686,701) | (12,424,623) | |||||
Increase in other payables | 1,035,422 | 1,105,485 | |||||
Increase in deposits received for travel | 10,393,958 | 9,065,234 | |||||
Increase in advance receipts | 2,403,449 | 2,090,933 | |||||
Decrease in provision | (866,835) | (802,463) | |||||
Increase in other financial liabilities | 139,756 | 310,590 | |||||
Increase in other current liabilities | (1,906,295) | 491,073 | |||||
Decrease in provision for long-term employee benefits | (61,000) | - | |||||
35,225,977 | 39,545,490 | ||||||
Interest income received | 4,354,080 | 3,522,214 | |||||
Dividend income received | 1,220,668 | 300,000 | |||||
Income taxes paid | (14,932,024) | (5,636,725) | |||||
￦ | 25,868,701 | ￦ | 37,730,979 | ||||
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013 | 2012 | ||||||
(In thousands of Korean won) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Cash inflows from investing activities: | |||||||
Decrease in short-term financial instruments | ￦ | 74,293,000 | ￦ | 54,833,000 | |||
Decrease in financial assets at FVTPL | - | 1,500,000 | |||||
Decrease in other receivables | 3,417,071 | 1,500,000 | |||||
Disposal of AFS financial assets | 109 | 2,280 | |||||
Disposal of investment in associates | - | 389 | |||||
Disposal of investment in subsidiaries | 3,005,000 | - | |||||
Disposal of investment property | - | 254,644 | |||||
Disposal of property and equipment | 381,500 | 21,434 | |||||
Disposal of intangible assets | 38,105 | - | |||||
Decrease in other financial assets | 622,632 | 2,077,731 | |||||
81,757,417 | 60,189,478 | ||||||
Cash outflows for investing activities: | |||||||
Increase in short-term financial instruments | 86,543,000 | 76,873,000 | |||||
Increase in other receivables | 5,504,621 | 3,340,000 | |||||
Acquisition of AFS financial assets | 250,000 | 5,000,000 | |||||
Acquisition of investment in associates | 4,892 | - | |||||
Acquisition of investment in subsidiaries | 10,745,664 | 12,198,525 | |||||
Acquisition of investment property | - | 497,970 | |||||
Acquisition of property and equipment | 2,954,412 | 1,926,423 | |||||
Acquisition of intangible assets | 2,554,819 | 4,207,617 | |||||
Increase in other financial assets | 3,138,482 | 2,133,300 | |||||
(111,695,890) | (106,176,835) | ||||||
(29,938,473) | (45,987,357) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Cash inflows from financing activities: | |||||||
Disposal of treasury stock | - | 15,724,649 | |||||
Exercised stock option rights | 7,030,703 | 3,873,682 | |||||
7,030,703 | 19,598,331 | ||||||
Cash outflows for financing activities: | |||||||
Acquisition of treasury stock | 6,596,882 | - | |||||
Payment of dividends | 11,357,802 | 9,823,727 | |||||
(17,954,684) | (9,823,727) | ||||||
(10,923,981) | 9,774,604 | ||||||
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS | (14,993,753) | 1,518,226 | |||||
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR | 67,596,859 | 66,178,480 | |||||
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (136,819) | (99,847) | |||||
CASH AND CASH EQUIVALENTS, AT END OF YEAR | ￦ | 52,466,287 | ￦ | 67,596,859 | |||
Ⅳ. MANAGEMENT
The directors are elected at a shareholder's meeting by a majority vote of the shareholders present or represented, so long as such number represents at least one quarter of all issued and outstanding shares with voting rights.
Name | Position | Date elected as a director or executive officer |
SangHwan Park | Chairman, Chief Executive Officer and Director | October 25, 1993(Officer and Director) |
HeeSeok Kweon | Vice Chairman, Director | December 23, 1995(Director) |
HuynSyuk Choi | President, Chief Executive Officer and Director | January 1, 2012(Officer) October 25, 1993(Director) |
JangSuk Han | Outside Director | March 25, 2005 |
JeongWoo Byun | Outside Director | March 23, 2006 |
SangTae Kim | Outside Director | March 27, 2012 |
Ⅴ. List of major shareholders
Shareholder | Number of shares | Percentage |
Sanghwan Park and 16 people with a special relationship | 2,375,887 | 20.45% |
NORGES BANK | 493,555 | 4.25% |
SHINHAN BANK[MIRAE ASSET GLOBAL INVESTMENTS] | 333,423 | 2.87% |
TRUSTON SUNSUE Stock Group1 No.3 | 299,847 | 2.58% |
KB BANK (MIRAE ASSET GLOBAL INVESTMENTS) | 284,688 | 2.45% |
SAMSUNG SECURITIES(BRAIN ASSET MANAGEMENT-HANA BANK) | 214,284 | 1.84% |
KOREA EXCHANGE BANK (MIRAE ASSET GLOBAL INVESTMENTS) | 204,233 | 1.76% |
HANATOUR INC. | 187,543 | 1.61% |
IMM MID/SMALL CAP Stock No.2 | 173,499 | 1.49% |
INVESCO KOREAN EQUITY FUND | 170,000 | 1.46% |
IBK BANK[MIRAE ASSET GLOBAL INVESTMENTS] | 160,788 | 1.38% |
IBK BANK[TRUSTON ASSET MANAGEMENTS] | 157,186 | 1.35% |
KB BANK (KOREA INVESTMENT & SECURITIES) | 150,127 | 1.29% |
KB SUNSUE Stock No.2 | 129,310 | 1.11% |
KB BANK (SHINYOUNG SECURITIES) | 124,457 | 1.07% |
DONGBU MID/SMALL CAP Stock No.1 | 116,637 | 1.00% |
Ⅵ. Status of Affiliated Companies and Others
Dometic | Namgang Travel Co., Ltd. |
Hana Tourist Co;,Ltd. (30.23%) | |
Hanatour Jeju Co.,Ltd. (77.35%) | |
Hanatour Youth (100%) | |
Hanauhak INC.(51%) | |
Hanatour ITC. (100%) | |
Tour Marketing Korea Co., Ltd. (70%) | |
OK Tour Co., Ltd. (48.9%) | |
Web tour (83.82%) | |
Korea Travel Service INC (60%) | |
HANA T&MEDIA Co, Ltd (51%). | |
CJ Worldis INC (50%) | |
Hanatour Business (100%) | |
Nex Tour.Co., Ltd. | |
H&T Marketing (80%) | |
Hana Shop (90%) | |
Hotel n Air.com, INC (50%) | |
Travel gonggong INC. (50%) | |
Center Mark Hotel Inc. | |
Tourtips.INC (99.8%) | |
Mark Hotel.Inc (100%) | |
Overseas | HANATOUR Europe S.R.L (50%) |
HANATOUR USA INC. (100%) | |
HANATOUR Europe Ltd (70%) | |
ALLEGROX TM Management | |
HANATOUR Japan Co., Ltd (70%) | |
HANATOUR CHINA (100%) | |
HANATOUR PTY Ltd (100%) | |
UI Coach | |
HANATOUR Hong Kong Co., Ltd (100%) | |
HANATOUR PTE Ltd. (100%) | |
HANATOUR Taiwan Service Inc. (100%) | |
HANATOURIST USA, INC |
Ⅶ. Investment stocks
| Ownership Company | Ownership Ratio (%) | No. of Shares |
Hanatour Business | 100.00 | 400,000 | |
Hanatourist Service Inc. | 30.23 | 906,981 | |
Hanatour Jeju Co.,Ltd. | 77.35 | 618,830 | |
Hanatour Youth | 100.00 | 400,000 | |
Hanatour ITC | 100.00 | 24,400,000 | |
Tour Marketing Korea Co.,Ltd | 70.00 | 140,000 | |
OK Tour Service Inc. | 48.92 | 9,784 | |
Web tour | 83.82 | 877,738 | |
Hana T & Media Co., Ltd | 51.00 | 510,000 | |
Hanauhak INC | 51.00 | 714,000 | |
Korea Travel Sevice INC | 60.00 | 600,000 | |
Namgang Travel Co., Ltd. | Hanatour Business | 100.00 | 300,000 |
CJ Worldis INC | 50.00 | 8,000,001 | |
H&T Marketing | 80.00 | 240,000 | |
Hana Shop | 90.00 | 360,000 | |
Seoul Tour Marketing Inc. | 2.89 | 120,000 | |
Hani Tour Inc. | 9.54 | 19,078 | |
Nex Tour Co.,Ltd | Web tour | 100.00 | 40,000 |
Hotel n Air.com INC. | 50.00 | 3,000,000 | |
Travel gonggong INC. | 50.00 | 100,000 | |
Hotelnfly, INC | 19.90 | 398,000 | |
Tourtips.INC | 99.75 | 3,990,000 | |
Center Mark Hotel Inc. | Hanatour ITC | 50.00 | 1,000,000 |
JR No. 10 Management Real Estate Investment Trusts | 15.15 | - | |
Mark Hotel. Inc | 100.00 | 20,000,000 | |
Woongjin Holdings | 0.02 | 6,903 | |
Kiwoom Culture Fund | 5.00 | - | |
HANATOUR USA INC | 100.00 | 225,000 | |
HANATOUR EUROPE LTD | 70.00 | 4,200 | |
HANATOUR PTE. LTD. | 100.00 | 2,142,000 | |
HANATOUR JAPAN CO., LTD | 70.00 | 1,400 | |
UI Coach | HANATOUR JAPAN CO., LTD | 100.00 | - |
HANATOUR CHINA | 100.00 | - | |
HANATOUR PTY LTD | 100.00 | 600,000 | |
HANATOUR HONGKONG CO., LTD. | 100.00 | 5,000,000 | |
HANATOUR TAIWAN SERVICE INC. | 100.00 | - | |
HANA TOURIST USA. INC | HANATOUR USA INC | 43.24 | 32,000 |
HANATOUR EURPOE S.R.L | 50.00 | 5,250 | |
ALLEGROX TM Management | HANATOUR JAPAN CO., LTD | 100.00 | 396 |
Independent Accountant's Review Report
on Internal Accounting Control System ("IACS")
English Translation of a Report Originally Issued in Korean
To the Representative Directors of
HANATOUR Service Inc.:
We have reviewed the accompanying Report on the Management's Assessment of IACS (the "Management's Report") of HANATOUR Service Inc. (the "Company") as of December 31, 2013. The Management's Report, and the design and operation of IACS are the responsibility of the Company's management. Our responsibility is to review the Management's Report and issue a review report based on our procedures. The Company's management stated in the accompanying Management's Report that "based on the assessment of the IACS as of December 31, 2013, the Company's IACS has been appropriately designed and is operating effectively as of December 31, 2013, in all material respects, in accordance with the IACS Framework established by the Korea Listed Companies Association."
We conducted our review in accordance with the IACS Review Standards established by the Korean Institute of Certified Public Accountants. Those standards require that we plan and perform a review, the objective of which is to obtain a lower level of assurance than an audit, of the Management's Report in all material respects. A review includes obtaining an understanding of a company's IACS and making inquiries regarding the Management's Report and, when deemed necessary, performing a limited inspection of underlying documents and other limited procedures.
A company's IACS represents internal accounting policies and a system to manage and operate such policies to provide reasonable assurance regarding the reliability of financial statements prepared, in accordance with accounting principles generally accepted in the Republic of Korea, for the purpose of preparing and disclosing reliable accounting information. Because of its inherent limitations, IACS may not prevent or detect a material misstatement of the financial statements. Also, projections of any evaluation of effectiveness of IACS to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Based on our review, nothing has come to our attention that causes us to believe that the Management's Report referred to above is not fairly stated, in all material respects, in accordance with the IACS Framework established by the Korea Listed Companies Association.
Our review is based on the Company's IACS as of December 31, 2013, and we did not review its IACS subsequent to December 31, 2013. This report has been prepared pursuant to the Acts on External Audit for Stock Companies in the Republic of Korea and may not be appropriate for other purposes or for other users.
March 13, 2014
Deloitte Anjin LLC
Lee, JaeSool, Chief Executive Officer
Report on the Assessment of Internal Accounting
Control System ("IACS")
To the Board of Directors and Auditor of
HANATOUR Service Inc.:
I, as the Internal Accounting Control Officer ("IACO") of HANATOUR Service Inc. ("the Company"), assessed the status of the design of the Company's IACS for the year ended December 31, 2013.
The Company's management including IACO is responsible for designing IACS. I, as the IACO, assessed whether the IACS has been appropriately designed and is effectively operating to prevent and detect any error or fraud, which may cause any misstatement of the non-consolidatedfinancial statements, for the purpose of preparing and disclosing reliable financial statement reporting. I, as the IACO, applied the IACS Framework established by the Korea Listed Companies Association for the assessment of the design of the IACS.
Based on the assessment of the IACS, the Company's IACS has been appropriately designed and is operating effectively as of December 31, 2013, in all material respects, in accordance with the IACS Framework.
January15, 2014
Cho, GyungHun, Internal Accounting Control Officer |
Choi, HuynSyuk , Chief Executive Officer or President |
Related Shares:
Hanatour Regs