2nd Apr 2013 07:00
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, 2012)
(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 | 313,883 | 313,883 | ||
VI. Number of shares distributed (IV-V) | 11,302,302 | 11,302,302 | ||
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 | 20th Term | 19th Term | 18th Term | |
Face amount per stock (won) | 500 | 500 | 500 | |
Current net income (million won) | 29,962 | 19,515 | 22,082 | |
Net income per share (won) | 2,714 | 1,789 | 2,005 | |
Total amount of cash dividend (million won) | 11,125 | 9,778 | 9,367 | |
Total amount of stock dividend (million won) | - | - | - | |
Tendency of stock dividend (%) | 37.1 | 50.1 | 42.4 | |
Yield rate of cash dividend (%) | Common stock | 1.7 | 2.7 | 2.0 |
Preferred stock | - | - | ||
Yield rate of stock dividend (%) | Common stock | - | - | |
Preferred stock | - | - | ||
Cash dividend per share (won) | Common stock | 1,000 | 900 | 850 |
Preferred stock | - | - | - | |
Stock dividend per share | Common stock | - | - | - |
Preferred stock | - | - | - | |
5. Status of Employees
(As of December 31, 2012)
(Unit: persons)
Classification | No. of employees | |||
Office | Operation | Etc | Total | |
Men | 412 | 444 | 38 | 894 |
Women | 235 | 631 | 101 | 967 |
Total | 647 | 1,075 | 139 | 1,861 |
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 are the number one wholesale travel agency in Korea with over 140,000 worldwide tour products selling through approximately 8,000 retail travel agencies.
Our primary business consists of assembling outbound package tour for Korean travelers. Our large scale of operations 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.
In 2011 Hanatour made various attempts for sustainable growth well into the future. Most attempts involved making internal changes and the changes are not only enhancing Free Individual Travel market & Online Sales and expanding global business through building a Northeast Asia tourism-belt, but also changing air supply management system to improve our margin effectively.
Hanatour established a joint venture called Hotel & Air.com, INC with Modetour in July 2011 for managing air inventory system effectively and enhancing the bargaining power through economies of scale. Total capital was 30 billion and Hanatour invested 60%. In an attempt to reduce air inventory risk from too much volume competition between Hanatour and Modetour, Hotel & Air.com will absorb the charter-flight sourcing functions from the two companies. Hotel & Air.com will evaluate the level of demands and will decide how many air seats to purchase. Other positive effects are expected such as cost savings from purchasing power and effective management of air charters.
Despite no clear evidence of consumer demand recovery in 2012, the outbound travel industry was boosted by FX and oil price stability, continuous increase in air seat supply, etc. The biggest issue in 2012 was the increase of airline seats to popular destinations which enabled the company to develop various products to match the needs of the customers which in turn contributed to growth. As a result number of package customers reached 1.6 million which mark 14.6% growth yoy and total number of customers grew 17.1% yoy at 2.27 million which is a new record.Southeast Asia proved to be the biggest contributor with 17.1% growth in volume and 25.3% in revenue. Japan is also recovering quite quickly from the tragic tsunami event which suppressed travel demands. Notably, air seat supply increase has resulted in cost decreased and helped the company's overall margin to increase over the past year. Also, Hotel & Air.com, INC which a joint venture with Modetour co, Ltd. has functioned as a mechanism to control the hard block levels and keep the "losses from unsold seats" to minimum levels.By continuously developing new products and building on brand power, the company has managed to increase market share to 18.2% 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 orders 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 persons and the market share rate is calculated by a number of departures. (Crews are excluded from the total departing persons)
This is based on the data announced monthly by Korea Tourism Organization (KNTO) and the passengers reported to Korea Tourism Association (KTA).
Year | 2012 | 2011 | 2010 | |||
Persons | Total departed persons | Total department persons from Hana Tour | Total departed persons | Total department persons from Hana Tour | Total departed persons | Total department persons from Hana Tour |
12,474,242 | 2,273,528 | 11,559,690 | 1,942,292 | 11,419,271 | 1,789,745 | |
Share rate | 18.23% | 16.80% | 15.67% | |||
3. Characteristics of the market
The travel business registered in Korea is about 10,000 that takes about 80% of entire tourist companies that employees about 50,000 persons that has taken a very important role as the main vein of tourism industry. In 1982, the travel business was converted into the registration system and completely liberated in 1989, bringing explosive increase of small travel companies. WTO expects the world travel industry to grow 4.1% of annual average up to 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
The Korean Inbound Tourism market growth has been accelerating recently especially with hefty growth in demand from Chinese travelers. However, shortage of hotel room inventories in downtown Seoul area has become a main issue for inbound companies as they struggle to provide hotel rooms to their customers. The power to secure hotel inventories became most important competitiveness of inbound companies.
Considering the market conditions and potential demands, Hanatour decided to enter hotel business.
This business will be our new growth driver raising our competitiveness of inbound market and sales power, because cooperation with Hotel business and Tourism can make more synergy.
Our first hotel "Centermark Seoul" opened in November and is in full operation with 250 rooms that are rated 3 stars. It is a 50:50 joint venture between Hanatour ITC, a 100% subsidiary of Hanatour, and Shinyoung Development. It is located in Insadong, one of the most popular areas among tourist, so company expects strong demands especially from Japan and China.
Our main target customers are Chinese and Japanese tourists because the location is very close to famous Korean tour attractions such as In-sa Dong and Myeong-dong.
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 planning to open second hotel in September 2013 and the ultimate goal is to secure 1,000 rooms in operation by 2015.
III. FINANCIAL DATA
Notice to Readers
This report is effective as of March 20, 2013, 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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2012 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. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2012 AND DECEMBER 31, 2011
LIABILITIES AND SHAREHOLDERS' EQUITY | December 31,2012 | December 31,2011 | |
(In thousands of Korean won) | |||
CURRENT LIABILITIES: |
|
| |
Trade payables | ￦ 44,729,135 | ￦ 64,740,986 | |
Other payables | 18,157,208 | 11,976,678 | |
Income tax payable | 11,489,734 | 3,018,089 | |
Deposits received for travel | 54,884,547 | 46,630,271 | |
Advanced receipts | 14,287,042 | 12,076,076 | |
Short-term borrowings | 11,597,875 | 14,391,555 | |
Current portion of long-term borrowings | 430,238 | 512,202 | |
Provision | 1,284,612 | 425,123 | |
Other financial liabilities | 2,281,368 | 2,048,704 | |
Other current liabilities | 10,420,586 | 5,972,875 | |
Total current liabilities | 169,562,345 | 161,792,559 | |
NON-CURRENT LIABILITIES: | |||
Long-term other payables | 976,776 | 426,718 | |
Long-term borrowings | 1,647,536 | 2,473,608 | |
Retirement benefit obligation | 15,944 | - | |
Provision for long-term employee benefits | 388,000 | - | |
Deferred income tax liabilities | 49,852 | 122,157 | |
Total non-current liabilities | 3,078,108 | 3,022,483 | |
Total liabilities | 172,640,453 | 164,815,042 | |
SHAREHOLDERS' EQUITY: | |||
Capital stock | 5,808,093 | 5,808,093 | |
Other contributed capital | 80,856,280 | 59,596,910 | |
Components of other capital | (187,151) | 299,360 | |
Retained earnings | 76,032,787 | 50,556,316 | |
Equity attributable to the owners of the Parent Company | 162,510,009 | 116,260,679 | |
Non-controlling interests | 17,270,099 | 15,273,199 | |
Total shareholders' equity | 179,780,108 | 131,533,878 | |
Total liabilities and shareholders' equity | ￦ 352,420,561 | ￦ 296,348,920 | |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 | 2011 | |
(In thousands of Korean won, except per share amounts) | ||
OPERATING REVENUE | ￦ 307,854,268 | ￦ 268,196,055 |
OPERATING EXPENSE | 268,261,691 | 244,193,568 |
OPERATING INCOME | 39,592,577 | 24,002,487 |
Financial income | 5,323,590 | 4,099,015 |
Financial expense: | 298,193 | 300,073 |
Share of the loss of associates | (1,036,488) | (330,373) |
Other revenue | 9,763,777 | 2,986,939 |
Other expense | 3,409,479 | 3,468,696 |
INCOME BEFORE INCOME TAX EXPENSE | 49,935,784 | 26,989,299 |
INCOME TAX EXPENSE | 12,539,619 | 5,534,946 |
NET INCOME | ￦ 37,396,165 | ￦ 21,454,353 |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 | 2011 | |
(In thousands Korean won, except per share amounts) | ||
OTHER COMPREHENSIVE INCOME: | ||
Gain on valuation of investment securities accounted for using the equity method | (614,953) | 16,894 |
Gain on foreign business translation | 44,264 | 175,181 |
Actuarial loss on defined benefit plans | (11,402) | - |
(582,091) | 192,075 | |
TOTAL COMPREHENSIVE INCOME | 36,814,074 | 21,646,428 |
NET INCOME ATTRIBUTABLE TO: | ||
Owners of the Parent Company | 35,307,039 | 21,051,367 |
Non-controlling interests | 2,089,126 | 402,986 |
37,396,165 | 21,454,353 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||
Owners of the Parent Company | 34,813,686 | 21,235,107 |
Non-controlling interests | 2,000,388 | 411,321 |
36,814,074 | 21,646,428 | |
BASIC AND DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO OWNERS OF PARENT COMPANY | ￦ 3,198 | ￦ 1,930 |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
Capital stock | Other contributed capital | Components of other capital | Retained earnings | Non-controlling interests | Total | |
(In thousands of Korean Won) | ||||||
January 1, 2011 | ￦ 5,808,093 | ￦ 64,713,696 | ￦ 108,139 | ￦ 40,447,061 | ￦ 2,995,619 | ￦ 114,072,608 |
Payment of cash dividend | - | - | - | (5,514,591) | - | (5,514,591) |
Payment of interim cash dividend | - | - | - | (5,427,521) | - | (5,427,521) |
Cash dividend of subsidiaries | - | - | - | - | (123,448) | (123,448) |
Acquisition of treasury stock | - | (7,972,244) | - | - | - | (7,972,244) |
Disposal of treasury stock | - | 844,209 | - | - | - | 844,209 |
Exercised stock option rights | - | (892,364) | - | - | - | (892,364) |
Stock compensation expense | - | 2,905,351 | - | - | - | 2,905,351 |
Net income | - | - | - | 21,051,367 | 402,986 | 21,454,353 |
Gain (loss) on foreign business translation | - | - | 174,328 | - | 853 | 175,181 |
Changes in valuation of equity-accounted investees | - | - | 16,894 | - | - | 16,894 |
Acquisition of investment in subsidiaries | - | (1,739) | - | - | (2,811) | (4,550) |
Changes in scope of consolidation | - | - | - | - | 12,000,000 | 12,000,000 |
December 31, 2011 | ￦ 5,808,093 | ￦ 59,596,909 | ￦ 299,361 | ￦ 50,556,316 | ￦ 15,273,199 | ￦ 131,533,878 |
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 |
Gain (loss) on foreign business translation | - | - | (530,776) | - | (84,177) | (614,953) |
Changes in valuation of equity-accounted investees | - | - | 44,264 | - | - | 44,264 |
Actuarial losson 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 |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 | 2011 | |
(In thousands of Korean won) | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Cash generated from operations: | ||
Net income | ￦ 37,396,165 | ￦ 21,454,353 |
Additions of expenses not involving cash outflows and others | 29,353,435 | 19,293,450 |
Deduction of incomes not involving cash inflows and others | (7,452,899) | (4,452,723) |
Movements in operating assets and liabilities: | ||
Increase in trade receivables | (10,799,248) | (5,911,876) |
Increase in other account receivables | (1,112,812) | (1,190,636) |
Increase in inventories | (27,358) | (266,799) |
Increase in advanced payments | (7,127,957) | (4,224,036) |
Increase in other current assets | (400,717) | (20,022) |
Increase (decrease) in trade payables | (15,298,233) | 16,437,127 |
Increase (decrease) in other payables | 4,039,498 | (4,881,524) |
Increase in deposits received for travel | 8,839,631 | 6,079,993 |
Increase in advanced receipts | 2,235,555 | 3,951,440 |
Increase in other current financial liabilities | 181,564 | 83,628 |
Decrease in provisions | (803,197) | (1,347,873) |
Increase(decrease) in other current liabilities | 1,603,556 | (1,497,157) |
Increase (decrease) in long-term other payables | 234,498 | (65,786) |
Decrease in retirement benefits obligations | (73,743) | - |
40,787,738 | 43,441,559 | |
Interest expense paid | (156,530) | (52,975) |
Interest income received | 4,961,555 | 3,777,500 |
Dividend income received | 16,678 | 181,396 |
Income taxes paid | (6,434,027) | (12,654,694) |
39,175,414 | 34,692,786 | |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 | 2011 | |
(In thousands of Korean Won) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash inflows from investing activities: | ||
Decrease in short-term financial instruments | ￦ 85,465,000 | ￦ 61,822,044 |
Decrease in financial assets at FVTPL | 1,500,000 | - |
Decrease in other receivables | 1,546,534 | 134,329 |
Disposal of AFS financial assets | 2,280 | - |
Disposal of investment in associates | 388 | - |
Disposal of investment property | 254,644 | - |
Disposal of property, plant and equipment | 562,778 | 153,085 |
Decrease in other financial assets | 2,149,359 | 1,865,069 |
91,480,983 | 63,974,527 | |
Cash outflows for investing activities: | ||
Increase in short-term financial instruments | 110,289,708 | 85,511,000 |
Increase in financial assets at FVTPL | - | 1,485,149 |
Increase in other receivables | 3,389,692 | 236,029 |
Acquisition of AFS financial assets | 5,000,000 | 39,800 |
Acquisition of investment in associates | 5,000,000 | 86,906 |
Acquisition of investment in subsidiaries | - | 4,550 |
Acquisition of investment property | 497,970 | - |
Acquisition of property, plant and equipment | 4,017,406 | 1,032,575 |
Acquisition of intangible assets | 4,596,047 | 3,022,701 |
Increase in other financial assets | 2,771,678 | 2,735,597 |
Increase in other non-current assets | - | 1,250 |
(135,562,501) | (94,155,557) | |
(44,081,518) | (30,181,030) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash inflows from financing activities: | ||
Disposal of treasury stock | 15,724,649 | - |
Proceeds from short-term borrowings | 4,049,692 | 11,245,359 |
Proceeds from long-term borrowings | - | 2,504,358 |
Proceeds from paid-in capital increase of subsidiaries | 3,275 | 12,000,000 |
Exercised stock option rights | 3,873,682 | - |
23,651,298 | 25,749,717 | |
Cash outflows for financing activities: | ||
Acquisition of treasury stock | - | 7,972,244 |
Repayment of short-term borrowings | 5,713,096 | |
Repayment of current portion of long-term borrowings | 487,364 | 595,289 |
Payment of dividends | 9,898,140 | 11,065,560 |
(16,098,600) | (19,633,093) | |
7,552,698 | 6,116,624 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,646,594 | 10,628,381 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR | 91,205,775 | 80,296,694 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (836,704) | 280,700 |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | ￦ 93,015,665 | ￦ 91,205,775 |
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2012 AND 2011
December 31, 2012 | December 31, 2011 | |
(In thousands of Korean won) | ||
| ||
ASSETS | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | ￦ 67,596,859 | ￦ 66,178,480 |
Short-term financial instruments | 70,993,000 | 48,953,000 |
Financial assets at FVTPL | - | 1,491,650 |
Trade receivables | 36,735,165 | 28,882,055 |
Other receivables | 5,895,363 | 2,432,770 |
Advance payments | 13,058,484 | 14,994,477 |
Other current assets | 2,037,395 | 1,690,650 |
Total current assets | 196,316,266 | 164,623,082 |
NON-CURRENT ASSETS: | ||
AFS financial assets | 5,415,168 | 472,168 |
Investment in associates | 1,081,294 | 1,088,432 |
Investment in subsidiaries | 47,758,621 | 35,141,733 |
Investment property | 6,620,373 | 6,385,410 |
Property, plant and equipment | 25,212,579 | 24,647,691 |
Intangible assets | 8,955,804 | 7,432,922 |
Other financial assets | 5,591,550 | 5,515,614 |
Deferred income tax assets | 3,398,229 | 2,324,587 |
Total non-current assets | 104,033,618 | 83,008,557 |
Total assets | ￦ 300,349,884 | ￦ 247,631,639 |
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2012 AND 2011
LIABILITIES AND SHAREHOLDERS' EQUITY | December 31, 2012 | December 31, 2011 |
(In thousands of Korean won) | ||
| ||
CURRENT LIABILITIES: | ||
Trade payables | ￦ 53,649,689 | ￦ 66,121,040 |
Other payables | 7,423,929 | 6,318,444 |
Income tax payable | 9,001,991 | 2,617,951 |
Deposits received for travel | 51,462,497 | 42,397,263 |
Provision | 1,281,042 | 420,818 |
Other financial liabilities | 2,710,260 | 2,283,125 |
Other current liabilities | 21,585,632 | 16,017,090 |
Total current liabilities | 147,115,040 | 136,175,731 |
NON-CURRENT LIABILITIES | ||
Long-term employee compensation liability | ￦ 388,000 | ￦ - |
Total non-current liabilities | 388,000 | - |
Total liabilities | 147,503,040 | 136,175,731 |
SHAREHOLDERS' EQUITY: | ||
Capital stock | 5,808,093 | 5,808,093 |
Other contributed capital | 80,843,371 | 59,590,859 |
Retained earnings | 66,195,380 | 46,056,956 |
Total shareholders' equity | 152,846,844 | 111,455,908 |
Total liabilities and shareholders' equity | ￦ 300,349,884 | ￦ 247,631,639 |
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 | 2011 | |
(In thousands of Korean won, except per share amounts) | ||
OPERATING REVENUE | ￦ 259,175,857 | ￦ 226,406,765 |
OPERATING EXPENSE | 224,454,834 | 204,735,152 |
OPERATING INCOME | 34,721,023 | 21,671,613 |
Financial income | 4,268,953 | 4,013,549 |
Financial Expense | 57,000 | 170,000 |
Gain or loss related to investment in associates and subsidiaries | (6,749) | (556,678) |
Other revenue | 2,679,564 | 1,566,701 |
Other expense | 2,005,182 | 1,766,991 |
|
| |
INCOME BEFORE INCOME TAX EXPENSE | 39,600,609 | 24,758,194 |
INCOME TAX EXPENSE | 9,638,458 | 5,243,534 |
NET INCOME | ￦ 29,962,151 | ￦ 19,514,660 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME | ￦ 29,962,151 | ￦ 19,514,660 |
BASIC AND DILUTED NET INCOME PER COMMON SHARE | ￦ 2,714 | ￦ 1,789 |
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF APPROPRIATIONS OF RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
| ||
2012 | 2011 | |
(In thousands or Korean Won) | ||
RETAINED EARNINGS BEFORE APPROPRIATIONS: | ||
Unappropriated retained earnings carried over from prior years | ￦ 37,804,493 | ￦ 28,067,355 |
Interim cash dividends | (5,473,726) | (5,427,521) |
Net income (loss) | 29,962,151 | 19,514,660 |
62,292,918 | 42,154,494 | |
APPROPRIATIONS: | ||
Cash dividends | 5,565,151 | 4,350,001 |
5,561,151 | 4,350,001 | |
UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO SUBSEQUENT YEAR | ￦ 56,641,767 | ￦ 37,804,493 |
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
Capital stock | Other contributed capital | Retained earnings | Total | |
(In thousands of Korean won) | ||||
January 1, 2011 | ￦ 5,808,093 | ￦ 64,705,907 | ￦ 37,484,407 | ￦ 107,998,407 |
Payment of cash dividend | - | - | (5,514,591) | (5,514,591) |
Payment of interim cash dividend | - | - | (5,427,520) | (5,427,520) |
Acquisition of treasury stock | - | (7,972,245) | - | (7,972,245) |
Disposal of treasury stock | - | 844,210 | - | 844,210 |
Exercised stock option rights | - | (892,364) | - | (892,364) |
Stock compensation expense | - | 2,905,351 | - | 2,905,351 |
Net income | - | - | 19,514,660 | 19,514,660 |
December 31, 2011 | ￦ 5,808,093 | ￦ 59,590,859 | ￦ 46,056,956 | ￦ 111,455,908 |
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 | 15,374,016 | 15,374,016 | ||
Exercised stock option rights | 2,915,649 | 2,915,649 | ||
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 |
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 | 2011 | |
(In thousands of Korean won) | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Cash generated from operations: | ||
Net income | ￦ 29,962,151 | ￦ 19,514,660 |
Additions of expenses not involving cash outflows and others | 22,512,973 | 15,167,450 |
Deduction of income not involving cash inflows and others | (4,794,750) | (4,042,000) |
Movements in operating assets and liabilities: | ||
Increase in trade receivables | (8,337,603) | (5,582,751) |
Increase in other receivables | (447,241) | (220,762) |
Decrease in Advance payments | 1,160,477 | 2,309,036 |
Decrease in other current assets | (346,746) | (71,784) |
Increase (decrease) in trade payables | (12,424,623) | 23,097,257 |
Increase (decrease) in other payables | 1,105,485 | (1,935,010) |
Increase in deposits received for travel | 9,065,234 | 5,337,531 |
Increase (decrease) in other financial liabilities | 310,590 | (673,202) |
Decrease in provision | (802,463) | (487,482) |
Increase in other current liabilities | 2,582,006 | 2,834,138 |
39,545,490 | 55,247,081 | |
Interest income received | 3,522,214 | 3,227,751 |
Dividend income received | 300,000 | 738,108 |
Income taxes paid | (5,636,725) | (11,476,488) |
37,730,979 | 47,736,452 | |
HANATOUR SERVICE INC.
SEPARATE STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
2012 | 2011 | |
(In thousands of Korean won) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash inflows from investing activities: | ||
Decrease in short-term financial instruments | ￦ 54,833,000 | ￦ 58,677,657 |
Decrease in financial assets at FVTPL | 1,500,000 | - |
Decrease in other receivables | 1,500,000 | 1,042,730 |
Disposal of AFS financial assets | 2,280 | - |
Disposal of investment in subsidiaries | 389 | - |
Disposal of investment property | 254,644 | - |
Disposal of property, plant and equipment | 21,434 | 3,807 |
Decrease in other financial assets | 2,077,731 | 1,453,658 |
60,189,478 | 61,177,852 | |
Cash outflows for investing activities: | ||
Increase in short-term financial instruments | 76,873,000 | 62,423,000 |
Increase in financial assets at FVTPL | - | 1,485,149 |
Increase in other receivables | 3,340,000 | 1,120,000 |
Acquisition of AFS financial assets | 5,000,000 | 39,800 |
Acquisition of investment in associates | - | 50,000 |
Acquisition of investment in subsidiaries | 12,198,525 | 18,004,550 |
Acquisition of investment property | 497,970 | - |
Acquisition of property, plant and equipment | 1,926,423 | 681,796 |
Acquisition of intangible assets | 4,207,617 | 2,733,220 |
Increase in other financial assets | 2,133,300 | 1,969,501 |
(106,176,835) | (88,507,016) | |
(45,987,357) | (27,329,164) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash inflows from financing activities: | ||
Disposal of treasury share | 15,724,649 | - |
Exercised stock option rights | 3,873,682 | - |
19,598,331 | - | |
Cash outflows for financing activities: | ||
Acquisition of treasury share | - | 7,972,244 |
Payment of dividends | 9,823,727 | 10,942,112 |
(9,823,727) | (18,914,356) | |
9,774,604 | (18,914,356) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,518,226 | 1,492,932 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR | 66,178,480 | 64,679,252 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (99,847) | 6,296 |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | ￦ 67,596,859 | ￦ 66,178,480 |
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 15 people with a special relationship | 2,388,045 | 20.56% |
NATIONAL PENSION SERVICE | 1,104,699 | 9.51% |
NORGES BANK | 423,761 | 3.64% |
T.ROWE PRICE INTERNATIOAL FUND I | 357,320 | 3.07% |
Shinhan BNPP SUNSUE Stock No.1 | 234,737 | 2.02% |
Ⅵ. Status of Affiliated Companies and Others
HanaTour Service Co.,Ltd
Namgang Travel Co., Ltd. | HANATOUR Europe S.R.L (50%) | |
Hana Tourist Co;,Ltd. (30.23%) | HANATOUR USA INC. (100%) | |
Hanatour Jeju Co.,Ltd. (77.35%) | HANATOUR Europe Ltd (70%) | |
Hanatour Youth (100%) | HANATOUR International Japan | |
Hanauhak INC.(51%) | HANATOUR Japan Co., Ltd (70%) | |
Hanatour ITC. (100%) | HANATOUR CHINA (100%) | |
Tour Marketing Korea Co., Ltd. (70%) | HANATOUR PTY Ltd (100%) | |
OK Tour Co., Ltd. (39%) | UI Coach | |
Web tour (80.12%) | HANATOUR Hong Kong Co., Ltd (100%) | |
Korea Travel Service INC (60%) | HANATOUR PTE Ltd. (100%) | |
HANA T&MEDIA Co, Ltd (51%). | HANATOUR Taiwan Service Inc. (100%) | |
CJ Worldis INC (50%) | HANATOURIST USA, INC | |
Hanatour Business (100%) | ||
Nex Tour.Co., Ltd. | ||
H&T Marketing (80%) | ||
HT Shop (90%) |
| |
Hotel n Air.com, INC (60%) | ||
Travel gonggong INC. (50%) | ||
Center Mark Hotel Inc. | ||
MARIOLAB INC.(100%) | ||
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. | 39.00 | 3,666,000 | |
Web tour | 80.12 | 838,995 | |
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 | |
HT 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. | 60.00 | 3,600,000 | |
Travel gonggong INC. | 50.00 | 100,000 | |
HANATOUR Network, INC | 19.90 | 398,000 | |
MARIOLAB.INC | 100.00 | 4,000,000 | |
Center Mark Hotel Inc. | Hanatour ITC | 50.00 | 2,000,000 |
JR No. 10 Management Real Estate Investment Trusts | 15.15 | - | |
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 | - |
HANAFIL GOLF & TOUR INC. | 6.80 | 17,000 | |
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 | - | |
HANATOUR INTERNATIONAL JAPAN | Hanatour ITC | 100.00 | 900 |
HANA TOURIST USA. INC | HANATOUR USA INC | 43.24 | 32,000 |
HANATOUR EURPOE S.R.L | 50.00 | 5,250 |
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, 2012. 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, 2012, the Company's IACS has been appropriately designed and is operating effectively as of December 31, 2012, 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, 2012, and we did not review its IACS subsequent to December 31, 2012. 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 20, 2013
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, 2012.
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, 2012, in all material respects, in accordance with the IACS Framework.
February12, 2013
Cho, GyungHun, Internal Accounting Control Officer
Related Shares:
Hanatour Regs