22nd Apr 2020 07:00
Annual Report
Click on, or paste the following link into your web browser, to view the full announcement.
http://www.rns-pdf.londonstockexchange.com/rns/4307K_1-2020-4-22.pdf
I. OUTLINE OF THE COMPANY
1. Purpose of the Company
Purpose | Remark |
1. General Travel Business(Travel Agency) 2. Ticketing and Sales of Airline and Boat 3. Souvenir Sales 4. Issuing of Selling Offers 5. Real Estate Dealing and Lease 6. Optional Communication Business 7. Computer Programming and Supply 8. Telemarketing Business 9. Printing and Publishing Business 10. Issuing of Periodicals 11. Operating School to Train Travel Experts 12. Transportation Business(Chartered Buses) 13. Internet Business (Install and Provide Contents, Internet Marketing) 14. E-commerce and Information Processing 15. Advertisement (Internet and Outdoor Advertisement) 16. Information and communication Related Business 17. Web Hosting and Homepage Establishment 18. Warehousing 19. Tourists Hotel & Lodging business 20. Operation and management of Tourists Hotels & Lodging and other incidental facilities 21. Tourists Hotels & Lodging Management Business 22. Investment, Development, Operation and Asset Management of the Domestic and Overseas Real Estate 23. Real Estate Agent Business 24. Management of Intellectual Property Rights and License Business (Brand, Trademark Rights) 25. Intangible Assets Sales and Service (Knowledge, Information) 26. Production and Distribution (Movies, Broadcasting, Videos and Other Cultural Products) 27. Production and Distribution of Digital Contents 28. Operating Performance Facilities 29. Planning Performance 30. Character business 31. Exhibition and Event Agency 32. Internet Broadcasting 33. Tourism Development and Incidental Business (Marketing Counsel, Planning and Consulting) 34. Education service 35. Operation of Lifelong E-learning Education Facilities 36. Gift Certificate Sales 37. Wedding Consulting 38. Amusement Park Operation 39. Comprehensive Leisure Facilities and Operation Management 40. Tourist Attraction Development Business 41. Comprehensive Recreation Business 42. International Conference Planning Business 43. Camping Car Business 44. Bonded Goods and Tourism Product Sales Business 45. Accommodation Business 46. Accommodation reservation Service 47. Web Portal and Internet Information Service 48. Franchise Business 49. Restaurant Business 50. Shopping Center Leasing and Sublease Business 51. Ticket sales related to Culture, Arts and Sports Events 52. Database Development and Sales Related to Culture, Arts and Sports 53. Investment of Cultural Projects (Performances and Film Production) 54. Organization of Events and Sponsors 55. Importation and Agency Business of Performance Publication Rights 56. Brokerage Agency Business for Copyrights and Neighboring Copyrights of Performance 57. Membership Sales and Brokerage Arrangements 58. Overseas Studies Agency Business 59. Lifelong Education Facilities Operating 60. Financial Loan and Other Financial Service Business 61. Electronic Financial Business 62. Planning and Promotion of Performance, Concert, Exhibition 63. Credit Card Business 64. Real Estate Development Business 65. Insurance Agent Business 66. All Other Incidental Businesses |
|
2. Important Business
General Travel Business(Travel Agency)
3. History of the Company
A. Changes after the establishment
Date | Important Changes |
Oct. 25, 1993 | Established Kookjin Travel Co., Ltd. (Capital: 350 million won) 55-4 Seosomun-dong, Jung-gu, Seoul |
Dec. 01, 1995 | Set the company policy in 'comprehensive wholesales' and launched 'Hana Tour', independent package brand, and commenced the agency sales |
Nov. 28, 2000 | Listed on KOSDAQ (commenced trading) |
Nov. 10, 2006 | Listed on LSE(London Stock Exchange) |
Nov. 01, 2011 | Listed on KOSPI |
Jan. 01, 2012 | CEO changed - SangHwan Park and HuynSyuk Choi |
Mar. 25, 2016 | CEO changed - SangHwan Park and JinKook Kim |
Mar. 26, 2020 | CEO changed - JinKook Kim and MiSun Song |
B. Change of trade name
Date | Changes |
Mar. 6, 1996 | Changed the name from Kookjin Travel Co., Ltd. to Hana Tour Co., Ltd. ** Purpose is to unify the brand name and company image |
C. Change of location for head office
Date | Location |
Oct. 25, 1993 | 55-4 Seosomun-dong, Jung-gu, Seoul |
Mar. 22, 1996 | 10F Inju Building, Tour cost fees-1 Seorin-dong, Jongro-gu, Seoul |
Oct. 01, 1997 | 11F Hanmi Building, 1 Gonpyeong-dong, Jongro-gu, Seoul |
Jun. 15, 2005 | 1 Gongpyeong-dong, Jongro-gu, Seoul |
Jul. 01. 2013 | HanaTour Bldg. 41, Insadon 5-gil, Jongno-gu, Seoul |
D. Merger, spin off (merger), comprehensive stock swap, transfer, important business assignment and others
On March 2, 2020, the Group issued 2,323,000 shares through capital increase with consideration in third party allocations, and it's the largest shareholder (with a 16.67% stake rate) was changed to Harmonia 1 limited company.
4. Domestic Place of Business
Classification | Location | MainBusiness |
Head Office | 41, Insadong 5-gil, Jongno-gu, Seoul, Republic of Korea |
General Travel Business and Ticketing
|
Central Office | 39, Namdaemun-ro 9-gil, Jung-gu, Seoul, Republic of Korea | |
Sindorim Office | 661, Gyeongin-ro, Guro-gu, Seoul, Republic of Korea | |
Seolleung Office | 325, Teheran-ro, Gangnam-gu, Seoul, Republic of Korea | |
Nowon Office | 460, Nohae-ro, Nowon-gu, Seoul, Republic of Korea | |
Wangsimni Office | 326, Wangsimni-ro, Seongdong-gu, Seoul, Republic of Korea | |
Gimpo International Airport Office | 70, Haneul-gil, Gangseo-gu, Seoul, Republic of Korea | |
Busan Sales Office | 216, Jungang-daero, Dong-gu, Busan, Republic of Korea | |
Haeundae Office | 60, Centum buk-daero, Haeundae-gu, Busan, Republic of Korea | |
Kimhae Airport Office | 108, Gonghangjinip-ro, Gangseo-gu, Busan, Republic of Korea | |
Busan Sales Office (Beomil-dong) | 14, Jobang-ro, Dong-gu, Busan, Republic of Korea | |
Deokcheon Office | 12, Gichal-ro, Buk-gu, Busan, Republic of Korea | |
Incheon Sales Office | 59, Bupyeong-daero, Bupyeong-gu, Incheon, Republic of Korea | |
Airport Office (Terminal1) | 271, Gonghang-ro, Jung-gu, Incheon, Republic of Korea | |
Airport Office (Terminal2) | 446, Je2terminal-daero, Jung-gu, Incheon, Republic of Korea | |
Airport Office (VIP Sending) | 47, Gonghang-ro 424beon-gil, Jung-gu, Incheon, Republic of Korea | |
Airport Office (Commodity Support) | 124, Yeongjong-daero, Jung-gu, Incheon, Republic of Korea | |
Bupyeong Office | 7, Sijang-ro 51beon-gil, Bupyeong-gu, Incheon, Republic of Korea | |
Daegu Sales Office | 648, Gukchaebosang-ro, Jung-gu, Daegu, Republic of Korea | |
Daejeon Sales Office | 69, Dunsanseo-ro, Seo-gu, Daejeon, Republic of Korea | |
Gwangju Sales Office | 136, Geumnam-ro, Buk-gu, Gwangju, Republic of Korea | |
Ulsan Sales Office | 105, Gangbuk-ro, Jung-gu, Ulsan, Republic of Korea | |
Hwajeong Office | 16, Hwajung-ro 104beon-gil, Deogyang-gu, Goyang-si, Gyeonggi-do, Republic of Korea | |
Beomgye Office | 180, Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do, Republic of Korea | |
Suwon Office | 299, Hyowon-ro, Paldal-gu, Suwon-si, Gyeonggi-do, Republic of Korea | |
Bundang Office | 42, Hwangsaeul-ro 360beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do, Republic of Korea | |
Gangneung Slaes Office | 317, Gangneung-daero, Gangneung-si, Gangwon-do, Republic of Korea | |
Chuncheon Slaes Office | 110, Jungang-ro, Chuncheon-si, Gangwon-do, Republic of Korea | |
Wonju Sales Office | 65, Neungnadong-gil, Wonju-si, Gangwon-do, Republic of Korea | |
Cheongju Sales Office | 27, Biha-ro, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, Republic of Korea | |
Cheonan Sales Office | 48, Buldang 14-ro, Seobuk-gu, Cheonan-si, Chungcheongnam-do, Republic of Korea | |
Jeonju Sales Office | 269, Paldal-ro, Wansan-gu, Jeonju-si, Jeollabuk-do, Republic of Korea | |
Suncheon Sales Office | 34, Jangseonbaegi-gil, Suncheon-si, Jeollanam-do, Republic of Korea | |
Mokpo Sales Office | 282, Hugwang-daero, Samhyang-eup, Muan-gun, Jeollanam-do, Republic of Korea | |
Pohang Sales Office | 3, Daei-ro 46beon-gil, Nam-gu, Pohang-si, Gyeongsangbuk-do, Republic of Korea | |
Changwon Sales Office | 754, Changwon-daero, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Republic of Korea | |
Jinju Sales Office | 12, Dongbu-ro 169beon-gil, Jinju-si, Gyeongsangnam-do, Republic of Korea |
5. Status of Employees (As of December 31, 2019)
(Unit: person)
Classification | Office & Operation |
Men | 1,117 |
Women | 1,383 |
Total | 2,500 |
6. Organization
II. INFORMATION ON SHARES
1. Total Number of Stocks, Etc.
A. Total number of stocks (As of December 31, 2019)
(Unit: share)
Classification | Types of stocks | Remark | ||
Common stock | Total | |||
I. Total number of stocks to be issued | 20,000,000 | 20,000,000 | - | |
II. Total number of stocks issued to this point | 11,616,185 | 11,616,185 | - | |
III. Total number of stocks reduced to this point | - | - | - | |
| 1. Reduction of capital | - | - | - |
2. Retirement of shares | - | - | - | |
3. Repayment of redeemed stocks | - | - | - | |
4. Others | - | - | - | |
IV. Total number of stocks issued (II-III) | 11,616,185 | 11,616,185 | - | |
V. Treasury stocks | 549,253 | 549,253 | - | |
VI. Outstanding stocks (IV-V) | 11,066,932 | 11,066,932 | - | |
B. Change of capital
(1) Status of capital increase
(Unit: share, won)
Date of stock issuance | Type of issuance | Contents of issued stocks | ||||
Types | Quantity | Par value | Issuance amount per stock | Remark | ||
Oct. 25, 1993 | - | Common stock | 35,000 | 10,000 | 10,000 | Capital for incorporation |
Jun. 12, 1996 | Capital increase with consideration (shareholder allotment) | Common stock | 21.500 | 10,000 | 10,000 | - |
Jul. 25, 1997 | Capital increase with consideration (shareholder allotment) | Common stock | 35,840 | 10,000 | 10,000 | - |
Oct.01, 1997 | - | Common stock | 184,680 | 5,000 | - | 1 to 2 shares |
Dec. 02, 1999 | Capital increase with consideration (shareholder allotment) | Common stock | 115,320 | 5,000 | 5,000 | - |
Dec. 23, 1999 | Capital increase with consideration (shareholder allotment) | Common stock | 60,000 | 5,000 | 10,000 | - |
May, 05, 2000 | Stock Split | Common stock | 3,600,000 | 500 | - | 1 to 10 shares |
Nov. 16, 2000 | Capital increase with consideration (shareholder allotment) | Common stock | 900,000 | 500 | 2,850 | - |
Aug. 26, 2003 | Capital increase without consideration | Common stock | 3,764,034 | 500 | - | - |
Oct. 27,2004 | Capital increase with consideration (shareholder allotment) | Common stock | 76,322 | 500 | 11,850 | - |
Oct. 27,2004 | Bonus Issue | Common stock | 1,977,029 | 500 | - | - |
Nov. 11, 2006 | Capital increase | Common stock | 1,161,000 | 500 | 55,711 | DR |
(2) Status of capital decrease
(Unit: share, won)
Date of capital reduction | Type | Purpose | Contents of reduced stocks | ||||
Types | Quantity | Face value per stock | Amount of acquisition per stock (for capital decrease for consideration) | Remark | |||
- | - | - | - | - | - | - | - |
C. Contents of scheduled change for capital
On March 2, 2020, the Group issued 2,323,000 shares through capital increase with consideration in third
party allocations, and it's the largest shareholder (with a 16.67% stake rate) was changed to Harmonia 1 limited
company.
2. Matters on Dividends
A. Matters on dividend for three recent fiscal year
Classification | 27th Term | 26th Term | |
Face value per stock (won) | 500 | 500 | |
(Consolidated) Current net income (million won) | (11,952) | 10,587 | |
(Separated) Current net income (million won) | (34,655) | 13,396 | |
(Consolidated) Net income per share (won) | (752) | 791 | |
Total amount of cash dividend (million won) | 11,067 | 14,387 | |
Total amount of stock dividend (million won) | - | - | |
Dividend payout ratio (%) | - | 107.4 | |
Yield rate of cash dividend (%) | Common stock | 2.0 | 1.9 |
Preferred stock | - | - | |
Yield rate of stock dividend (%) | Common stock | - | - |
Preferred stock | - | - | |
Cash dividend per share (won) | Common stock | 1,000 | 1,300 |
Preferred stock | - | - | |
Stock dividend per share | Common stock | - | - |
Preferred stock | - | - | |
III. CONTENTS OF THE BUSINESS
1. Summary of the Business
Until 2018, Korea's outbound volume recorded a CAGR of 14.8%, showing high growth rate over the years. This was a growth rate alongside with the growth that was suggested by UNWTO and the reason for this was economic, technical growth and due to the ease of visa regulations between the countries.
However, 2019 Korea's outbound market was affected by Japan as it was the leading destination for Korean travelers for the past 4 years. In the beginning of the year, there was a spread of Japanese Flu, Korea-China government agreement to increase the number of flights between the two countries which didn't happen, and in the second half there was a boycott of Japanese products including traveling to Japan due to the political tension between the two governments which had greater impacts to the outbound market.
As the result of these factors, Korea's outbound volume decreased 13.8% YOY, Hanatour's PKG volume was 2.9 million showing approximately 21.5% decrease over 2018 records, and Air Ticket volume was 2.2 million showing a slight increase of 2.8% YOY. All in all, Hanatour's blended YOY volume growth in 2019 was -12.5% with approximately 5.1 million customers.
Regional volume split was as follows: Southeast Asia 41.3%, Japan 38.8%, China 12.7%, Europe 8.3%, South Pacific 4.7% and Americas 2.5%. Each destinations' revenue contribution was Southeast Asia 40.2%, Europe 20.7%, China 13.2%, Japan 11.6%, South Pacific 7.1% and Americas 5.8%. The above Regional mix most likely represents the Korean outbound travel preference which prefer short haul destinations with Japan, Southeast Asia and China taking majority of overall package volume.
2. Market Share Rate
The market share rate of the travel business is classified based on the calculation in which the "Total Departures from HANATOUR" is divided by the "Total Departures of Korea." (Crews are excluded from the total departing persons)
The "Total Departure of Korea" is announce by Korea Tourism Organization (KNTO) and the "Total Departures from HANATOUR" is the figure which we report to Korean Association of Travel Agents (KATA).
Year | 2019 | 2018 | 2017 | |||
| Total Departures from HANATOUR | Total Departures of Korea | Total Departures from HANATOUR | Total Departures of Korea | Total Departures from HANATOUR | Total Departures of Korea |
5,143,867 | 26,920,415 | 5,878,013 | 26,928,389 | 5,634,020 | 24,837,011 | |
Share rate | 19.11% | 21.83% | 22.68% | |||
3. Characteristics of the market
There are three special characteristics that make travel industry distinctive.
First, Travel business has seasonality. The pricing and marketing strategies change in accordance to seasons. However, due to 5-work-day policy and more maturing society and corporate cultures, the gap between the demands of seasons are shrinking which demanding changes to the products and strategies of travel agents.
Second, travel industry has time limits and has no inventory. This is in-line with air transportation, and hotel business. Products have to be sold on each day or the inventories will disappear automatically. Therefore it is very important to have marketing strategy and diversified portfolio of products in order to get rid of all the inventories that the company possesses.
Third, travel industry is easy to copy. Therefore, the company needs to find new elements that would differentiate the company among competitors.
Last, travel industry is volatile. Compared to other industries it is affected by political, diplomatic, various social issues, economic issue, diseases and other aspects as well.
4. New Business Development
Not Applicable.
Ⅳ. Status of the Parent Company and Affiliated Companies
1. Status of the parent company
Not applicable.
2. Status of affiliated companies
(Unit: Share, %)
Name of the Company | Business Contents | No. of Shares | Ownership Ratio (%) |
Hanatour Business Service Inc. | Travel Business | 400,000 | 100.00 |
Hanatour Jeju Service Inc. | Travel Business | 618,830 | 77.35 |
Hanatour ITC Service Inc. | Travel Business | 24,400,000 | 100.00 |
Tour Marketing Korea Service Inc. | Travel Business | 140,000 | 70.00 |
Web Tour Service Inc. | Travel Business | 8,777,380 | 76.99 |
Hana T&Media Inc. | Publishing | 510,000 | 51.00 |
Korea Travel Service Inc. | Travel Business | 600,000 | 60.00 |
WorldisTour Co., Ltd. | Travel Business | 8,000,001 | 50.00 |
H&T Marketing Inc. | Advertising | 240,000 | 80.00 |
Hana Shop Co., Ltd. | Retail Business | 360,000 | 90.00 |
Tourtips Inc. | Information Provision | 10,000,000 | 100.00 |
Mark Hotel Co., Ltd. | Hotel Business | 40,000,000 | 100.00 |
Hana Finance Service Inc. | Finance Service | 9,800,000 | 100.00 |
SM duty free Co., Ltd. | Duty Free Business | 12,325,387 | 90.13 |
JR Invest Company Inc. | Real Estate Business | 1,000,000 | 100.0 |
Hanatour USA Inc. | Travel Business | 500,000 | 100.00 |
Hanatour Europe Ltd. | Travel Business | 4,200 | 70.00 |
Hanatour PTE LTD. | Travel Business | 2,142,000 | 100.00 |
Hanatour Japan Co., Ltd. | Travel Business | 5,619,700 | 51.09 |
Hanatour CHINA | Travel Business | - | 100.00 |
Hanatour PTY. Ltd. | Travel Business | 600,000 | 100.00 |
Hanatour HongKong Co., Ltd. | Travel Business | 5,000,000 | 100.00 |
Hanatour Taiwan Service Inc. | Travel Business | - | 100.00 |
Beijing Hana Information Technology Co., Ltd. | Software Technical Development | - | 100.00 |
Hanatour Service (M) Sdn.Bhd. | Travel Business | 1,500,000 | 100.00 |
HANATOUR EU GMBH | Travel Business | - | 100.00 |
CAMLAO HANATOUR CO., LTD. | Travel Business | 300,000 | 100.00 |
HANATOUR VIETNAM COMPANY LIMITED | Travel Business | - | 85.00 |
HANATOUR PHILIPPINES CORP. | Travel Business | 827,980 | 96.28 |
HNT ITALIA-SOCIETA' A RESPONSAVILITA' LIMITATA | Travel Business | - | - |
3. Concurrent status of the executive management
Executive management | Concurrent Company | |||
Name | Position | Company Name | Position | Assigned Task |
SangHwan Park | Chairman, Chief Executive Officer and Director | HANATOUR PTE LTD. | Chief Executive Officer and Director | General Management |
Hotel&Air Co., Ltd. | Director | General Management | ||
HeeSeok Kweon | Vice Chairman, Director | Hanatour ITC Service Inc. | Chief Executive Officer and Director | General Management |
Hotel&Air Co., Ltd. | Director | General Management | ||
JinKook Kim | Chief Executive Officer and Director | Web Tour Service Inc. | Non-executive Director | General Management |
Hanatour China | Director | General Management | ||
Hotel&Air Co., Ltd. | Director | General Management | ||
Ⅴ.SUMMARY OF FINANCIAL DATA
* We've applied K-IFRS 1115 form 2018 and rewrote 2017 and 2016 Financial Results using K-IFRS 1115
1. Financial results
(In thousand won, except per share amounts)
Classification | 27th Term | 26th Term | 25th Term |
Sales | 462,940,363 | 542,073,146 | 535,154,599 |
Operating Expenses | 457,256,969 | 515,443,456 | 488,051,660 |
Operating Income | 5,683,395 | 26,629,690 | 47,102,938 |
Profit Before Tax | (31,876,068) | 21,249,687 | 45,236,097 |
Income Tax Expense | 2,779,238 | 7,853,355 | 18,984,305 |
Net Income | (34,655,306) | 13,396,332 | 26,251,793 |
Net Income per Share(Won) | (3,131) | 1,210 | 2,372 |
2. Financial position
(In thousand won)
Classification | 27th Term | 25th Term | 24rd Term |
Current Assets | 163,151,889 | 265,598,584 | 297,911,223 |
Non-Current Assets | 295,927,124 | 207,107,324 | 183,373,200 |
Total Assets | 459,079,014 | 472,705,908 | 481,284,424 |
Current Liabilities | 226,927,968 | 287,134,993 | 292,020,444 |
Long-term Liabilities | 98,159,130 | 3,643,375 | 4,132,373 |
Total Liabilities | 325,087,098 | 290,778,368 | 296,152,817 |
Capital Stock | 5,808,093 | 5,808,093 | 5,808,093 |
Other Paid-in Capital | 58,700,030 | 58,700,030 | 58,700,030 |
Elements of Other Shareholder's Equity | (9,097) | (9,097) | (815,269) |
Retained Earnings | 69,492,890 | 117,428,515 | 121,438,753 |
Total Shareholder's Equity | 133,991,916 | 181,927,541 | 185,131,606 |
Total Liabilities and Shareholder's Equity | 459,079,014 | 472,705,908 | 481,284,424 |
Ⅵ. RISK FACTORS
Refer to III - 1. Summary of the Business
Ⅶ. MANAGEMENT
Full-time / Part-time | Name | Position | Assigned Task |
Full-time | SangHwan Park | Chairman, Chief Executive Officer and Director | General Management |
Full-time | HeeSeok Kweon | Senior Vice Chairman, Director | General Management |
Full-time | JinKook Kim | Chief Executive Officer and Director | General Management |
Part-time | JeongWoo Byun | Auditor, Outside Director | Outside Director |
Part-time | JangSuk Han | Auditor, Outside Director | Outside Director |
Part-time | GunHo Cho | Auditor, Outside Director | Outside Director |
Ⅷ. LIST OF MAJOR SHAREHOLDERS
Shareholder | Number of shares | Percentage |
Sanghwan Park and 30 people with a special relationship | 1,720,112 | 14.80% |
HANATOUR INC. | 549,253 | 4.73% |
Ⅸ. CURRENT STATUS OF INVESTMENTS
1. Domestic
Name of the Company | Ownership Company | Ownership Ratio (%) | No. of Shares |
Hanatour Business Service Inc. | HANATOUR Service Inc. | 100.00 | 400,000 |
Hana Tourist Inc. | HANATOUR Service Inc. | 30.23 | 906,981 |
Hanatour Jeju Service Inc. | HANATOUR Service Inc. | 77.35 | 618,830 |
Hanatour ITC Service Inc. | HANATOUR Service Inc. | 100.00 | 24,400,000 |
Tour Marketing Korea Service Inc. | HANATOUR Service Inc. | 70.00 | 140,000 |
OK Tour Service Inc. | HANATOUR Service Inc. | 48.92 | 9,784 |
Web Tour Service Inc. | HANATOUR Service Inc. | 76.99 | 8,777,380 |
Hana T&Media Inc. | HANATOUR Service Inc. | 51.00 | 510,000 |
Korea Travel Service Inc. | HANATOUR Service Inc. | 60.00 | 600,000 |
WorldisTour Co., Ltd. | HANATOUR Service Inc. | 50.00 | 8,000,001 |
H&T Marketing Inc. | HANATOUR Service Inc. | 80.00 | 240,000 |
Hana Shop Co., Ltd. | HANATOUR Service Inc. | 90.00 | 360,000 |
Nextour Co., Ltd. | WEBTOUR Co., Ltd. | 100.00 | 40,000 |
Hotel&Air Co., Ltd. | HANATOUR Service Inc. | 50.00 | 1,000,000 |
Hotelnfly, INC | HANATOUR Service Inc. | 19.90 | 398,000 |
Tourtips Inc. | HANATOUR Service Inc. | 100.00 | 10,000,000 |
Center Mark Hotel Inc. | HANATOUR ITC INC. | 50.00 | 1,000,000 |
JR Invest Company Inc. | HANATOUR Service Inc. | 100.00 | 1,000,000 |
Mark Hotel Co., Ltd. | HANATOUR Service Inc. | 100.00 | 40,000,000 |
Hana Finance Service Inc. | HANATOUR Service Inc. | 100.00 | 9,800,000 |
SM duty free Co., Ltd. | HANATOUR Service Inc. | 90.13 | 12,325,387 |
Triple Corp. | TOURTIPS INC. | 3.84 | 6,000 |
Mohajiplatform | TOURTIPS INC. | 100.00 | 100,000 |
Hanatong Co., Ltd. | HANATOUR Service Inc. | 50.00 | - |
CELINO INC | HANATOUR Service Inc. | 50.00 | 300,000 |
K Culture Industry Co., Ltd. | HANATOUR Service Inc. | 40.00 | - |
YDH LTD | HANATOUR Service Inc. | 20.00 | - |
2. Overseas
Name of the Company | Ownership Company | Region | Ownership Ratio (%) | No. of Shares |
Hanatour USA Inc. | HANATOUR Service Inc. | LA | 100.00 | 500,000 |
Hanatour Europe Ltd. | HANATOUR Service Inc. | London | 70.00 | 4,200 |
Hanatour PTE LTD. | HANATOUR Service Inc. | Singapore | 100.00 | 2,142,000 |
Hanatour Japan Co., Ltd. | HANATOUR Service Inc. | Japan | 51.09 | 5,619,700 |
U.I Sightseeing Bus LLC | HANATOUR JAPAN CO., LTD | Japan | 100.00 | 1,900 |
Hanatour CHINA | HANATOUR Service Inc. | China | 100.00 | - |
Hanatour PTY. Ltd. | HANATOUR Service Inc. | Australia | 100.00 | 600,000 |
Hanatour HongKong Co., Ltd. | HANATOUR Service Inc. | Hong Kong | 100.00 | 5,000,000 |
Hanatour Taiwan Service Inc. | HANATOUR Service Inc. | Taiwan | 100.00 | - |
Hanatour Europe s.r.l | HANATOUR Service Inc. | Italy | 50.00 | 5,250 |
Allegrox TM Hotel | HANATOUR JAPAN CO., LTD | Japan | 100.00 | 396 |
Star Shop&Line | HANATOUR JAPAN CO., LTD | Japan | 100.00 | 1,800 |
Beijing Hana Information Technology Co., Ltd. | HANATOUR Service Inc. | China | 100.00 | - |
Hanatour Service (M) Sdn.Bhd. | HANATOUR Service Inc. | Malaysia | 100.00 | 1,500,000 |
Hanatour Janpan System Vietnam | HANATOUR JAPN CO., LTD | Vietnam | 100.00 | - |
Beijing Yitu International Travel Service Co., Ltd | HANATOUR Service Inc. | China | 20.00 | - |
HANATOUR EU GMBH | HANATOUR Service Inc. | Germany | 100.00 | - |
CAMLAO HANATOUR CO., LTD. | HANATOUR Service Inc. | Cambodia | 100.00 | 300,000 |
HANATOUR VIETNAM COMPANY LIMITED | HANATOUR Service Inc. | Vietnam | 85.00 | - |
HANATOUR PHILIPPINES CORP. | HANATOUR Service Inc. | Philippines | 96.28 | 827,980 |
VISION TOUR, INC. | Hanatour USA Inc. | LA | 100.00 | 300,000 |
HANA (ZHANGJIAJIE) TOUR CO., LTD | HANATOUR CHINA | Zhangjiajie | 54.00 | - |
HANA (SHANGHAI) TOUR CO., LTD | HANATOUR CHINA | Shanghai | 65.00 | - |
TMARK HOTEL VATICANO S.R.L | HANATOUR EUROPE LTD | Roma | 51.00 | 25,500 |
HANA (QINGDAO) TOUR CO., LTD | HANA TOUR CHINA | Qingdao | 65.00 | - |
HANA (XIAN) TOUR CO., LTD | HANA TOUR CHINA | Xian | 65.00 | - |
HANA (GUILIN) TOUR CO., LTD | HANA TOUR CHINA | Guilin | 65.00 | - |
HANA Zhuhai Marketing & Network Co., Ltd | HANATOUR HONGKON CO., LTD. | Zhuhai | 100.00 | - |
HNT ITALIA - SOCIETA' A RESPONSABILITA' LIMITATA | HANATOUR Service Inc. | Roma | 51.00 | - |
Ⅹ. MAJOR CREDITORS
Not applicable.
XI. IMPORTANT EVENTS AFTER THE SETTLEMENT OF
ACCOUNTS PERIOD
(1) Hanatour ITC Service Inc. which is one of subsidiaries of the Group with a 100% stakes made 7,000,000
common shares reduction of capital stock with consideration on January 29, 2020
(2) On March 2, 2020, the Group issued 2,323,000 shares through capital increase with consideration in third
party allocations, and it's the largest shareholder (with a 16.67% stake rate) was changed to Harmonia 1 limited company.
(3) After the end of the reporting period, the Group has faced uncertainty of economic activities and economic
deterioration due to concerns over the long-term and spread of Corona19(COVID-19). For the field of travels and travel-related businesses, Corona19's spread has resulted in a number of cancellations and decreases in new travel reservations, and increased uncertainty about future revenue and future cash flow. However, because the ultimate effect of the situation from this uncertainty on the Group's financial position is now unpredictable, the Group's current consolidated financial statement does not reflect this effect.
XII. OTHER IMPORTANT FACTS ABOUT THE BUSINESS
None.
Independent Auditors' Report
Based on a report originally issued in Korean
The Board of Directors and Shareholders
Hanatour Service Inc.:
Opinion
We have audited the consolidated financial statements of Hanatour Service Inc. and its subsidiaries (the "Group"), which comprise the consolidated statements of financial position as of December 31, 2019 and 2018, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards ("K-IFRS").
Basis for Opinion
We conducted our audits in accordance with Korean Standards on Auditing (KSAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used in the preparation of the consolidated financial statements and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
The engagement partner on the audit resulting in this independent auditors' report is Hyun-Jin Chung.
KPMG Samjong Accounting Corp.
Seoul, Korea
March 18, 2020
This report is effective as of March 18, 2020, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Financial Position
As of December 31, 2019 and 2018
(In thousands of won) |
|
| 2019 |
| 2018 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
| W | 110,846,773 |
| 157,699,693 |
Short-term financial instruments |
|
| 105,607,931 |
| 127,966,881 |
Trade receivables |
|
| 88,143,088 |
| 97,039,691 |
Other receivables |
|
| 9,503,873 |
| 7,123,172 |
Finance lease receivables |
|
| 1,911,235 |
| 44,282 |
Inventories |
|
| 33,843,943 |
| 53,074,880 |
Advance payments |
|
| 31,064,346 |
| 32,262,902 |
Other current assets |
|
| 10,599,262 |
| 10,598,185 |
Other financial assets |
|
| 8,877,273 |
| - |
Current tax assets |
|
| 517,328 |
| 686,690 |
Assets held for sale |
|
| 5,134,924 |
| 5,229,149 |
Current financial assets at FVTPL |
|
| 2,181,987 |
| 5,985,926 |
Total current assets |
|
| 408,231,963 |
| 497,711,451 |
|
|
|
|
|
|
Non-current financial assets at FVTPL |
|
| 4,256,975 |
| 6,451,694 |
Financial assets at FVOCI |
|
| 1,317,191 |
| 918,120 |
Investments in associates and joint ventures |
|
| 6,168,614 |
| 10,106,990 |
Long-term finance lease receivables |
|
| 1,926,002 |
| 118,168 |
Long-term other receivables |
|
| 3,094,053 |
| - |
Investment property, net |
|
| 25,708,777 |
| 22,095,166 |
Property and equipment, net |
|
| 146,338,304 |
| 109,529,904 |
Right-of-use assets |
|
| 323,826,602 |
| - |
Intangible assets |
|
| 40,533,487 |
| 22,086,411 |
Long-term advance payments |
|
| 4,000,000 |
| 94,000 |
Other financial assets |
|
| 31,242,031 |
| 36,953,155 |
Deferred tax assets |
|
| 10,769,354 |
| 7,756,731 |
Other non-current assets |
|
| 142,505 |
| 2,299,961 |
Total non-current assets |
|
| 599,323,895 |
| 218,410,300 |
|
|
|
1,007,555,858 |
|
716,121,751 |
Total assets |
| W |
| ||
|
|
|
|
|
|
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Financial Position, Continued
As of December 31, 2019 and 2018
(In thousands of won) |
|
| 2019 |
| 2018 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Trade payables |
| W | 66,698,743 |
| 99,718,809 |
Other payables |
|
| 40,764,796 |
| 52,496,300 |
Income tax payables |
|
| 3,784,025 |
| 3,596,862 |
Deposits received for travel |
|
| 104,370,542 |
| 133,950,763 |
Advances received |
|
| 22,300,072 |
| 26,046,337 |
Short-term borrowings |
|
| 90,837,505 |
| 69,617,239 |
Current portion of long-term borrowings |
|
| 3,389,707 |
| 2,295,649 |
Finance lease liabilities |
|
| 47,131,157 |
| 2,768,848 |
Provisions |
|
| 490,586 |
| 404,754 |
Other financial liabilities |
|
| 3,774,508 |
| 3,726,934 |
Other current liabilities |
|
| 23,960,522 |
| 18,953,087 |
Liabilities held for sale |
|
| - |
| 14,246 |
Total current liabilities |
|
| 407,502,163 |
| 413,589,828 |
|
|
|
|
|
|
Long-term other payables |
|
| 8,287,017 |
| 11,054,850 |
Long-term borrowings |
|
| 88,668,268 |
| 10,381,719 |
Debentures |
|
| 1,363,052 |
| 2,286,089 |
Long-term provisions |
|
| 1,856,401 |
| 1,687,053 |
Long-term finance lease liabilities |
|
| 279,690,103 |
| 35,071,512 |
Provision for long-term employee benefits |
|
| 1,945,053 |
| 1,783,010 |
Other financial liabilities |
|
| 202,000 |
| 62,453 |
Other non-current liabilities |
|
| 162,353 |
| 325,031 |
Total non-current liabilities |
|
| 382,174,247 |
| 62,651,717 |
|
|
|
|
|
|
Total liabilities |
|
| 789,676,410 |
| 476,241,545 |
|
|
|
|
|
|
Equity |
|
|
|
|
|
Capital stock |
|
| 5,808,093 |
| 5,808,093 |
Other contributed capital |
|
| 77,487,067 |
| 77,349,083 |
Components of other capital |
|
| 538,389 |
| (1,532,526) |
Retained earnings |
|
| 96,937,522 |
| 118,245,244 |
Equity attributable to the owners of the Parent Company |
|
| 180,771,071 |
| 199,869,894 |
Non-controlling interests |
|
| 37,108,378 |
| 40,010,312 |
Total equity |
|
| 217,879,449 |
| 239,880,206 |
|
|
|
|
|
|
Total liabilities and equity |
| W | 1,007,555,858 |
| 716,121,751 |
|
|
|
|
|
|
HANATOUR SERVICE INC. AND SUBSIDIARIESConsolidated Statements of Comprehensive Income
For the years ended December 31, 2019 and 2018
(In thousands of won, except earnings per share data) |
|
| 2019 |
| 2018 |
|
|
|
|
|
|
Operating revenue |
| W | 763,194,958 |
| 828,273,952 |
|
|
|
|
|
|
Operating expense |
|
| 757,258,615 |
| 803,404,831 |
Bad debt expense |
|
| 5,625,054 |
| 3,448,001 |
Other operating expense |
|
| 751,633,561 |
| 799,956,830 |
|
|
|
|
|
|
Operating income |
|
| 5,936,343 |
| 24,869,121 |
|
|
|
|
|
|
Interest income by effective interest method |
|
| 3,092,399 |
| 3,646,527 |
Other financial income |
|
| 888,325 |
| 164,869 |
Financial expense |
|
| 10,807,760 |
| 1,468,200 |
Loss from investment in associates and joint ventures |
|
| (2,795,157) |
| (480,313) |
Other income |
|
| 16,195,176 |
| 10,055,784 |
Other expense |
|
| 18,187,807 |
| 14,451,075 |
|
|
|
|
|
|
Income before income taxes |
|
| (5,678,480) |
| 22,336,713 |
|
|
|
|
|
|
Income taxes |
|
| 6,273,372 |
| 11,749,916 |
|
|
|
|
|
|
Net income (loss) |
| W | (11,951,852) |
| 10,586,797 |
|
|
|
|
|
|
Other comprehensive income after tax expense |
|
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified to profit of loss: |
|
|
|
|
|
Loss on valuation financial assets at FVOCI |
|
| (426,975) |
| (198,442) |
|
|
|
|
|
|
Items that are or may be reclassified subsequently to profit of loss: |
|
|
|
|
|
Changes in valuation of equity-accounted investees, net |
|
| 12,937 |
| (38,447) |
Gain (loss) on foreign operations translation, net |
|
| 3,649,364 |
| 4,002,589 |
|
|
|
|
|
|
Total items that are or may be reclassified subsequently to profit of loss |
|
| 3,235,326 |
| 3,765,700 |
|
|
|
|
|
|
Total comprehensive income |
| W | (8,716,526) |
| 14,352,497 |
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
Owners of the Parent Company |
|
| (8,027,403) |
| 8,749,373 |
Non-controlling interests |
|
| (3,924,448) |
| 1,837,424 |
|
|
|
|
|
|
|
| W | (11,951,851) |
| 10,586,797 |
Comprehensive income attributable to: |
|
|
|
|
|
Owners of the Parent Company |
|
| (5,956,488) |
| 10,778,868 |
Non-controlling interests |
|
| (2,760,037) |
| 3,573,629 |
|
|
|
|
|
|
|
| W | (8,716,525) |
| 14,352,497 |
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
Basic earnings per share (in won) |
|
| (725) |
| 791 |
Diluted earnings per share (in won) |
| W | (725) |
| 791 |
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2019 and 2018
(In thousands of won) |
| Capital Stock |
| Other contributed capital |
| Components of other capital |
| Retained earnings |
| Non-controlling interests |
| Total shareholders' equity | |
January 1, 2018 | W | 5,808,093 |
| 80,560,685 |
| (4,368,194) |
| 126,902,441 |
| 36,823,386 |
| 245,726,411 | |
Adjustment on initial application |
| - |
| - |
| 806,173 |
| (806,173) |
| - |
| - | |
Adjusted balance at January 1, 2018 |
|
5,808,093 |
|
80,560,685 |
|
(3,562,021) |
|
126,096,268 |
|
36,823,386 |
|
245,726,411 | |
Dividends |
| - |
| - |
| - |
| (8,853,545) |
| - |
| (8,853,545) | |
Interim dividends |
| - |
| - |
| - |
| (7,746,852) |
| - |
| (7,746,852) | |
Dividends of subsidiaries |
| - |
| - |
| - |
| - |
| (1,564,570) |
| (1,564,570) | |
Discount on stock issuance |
| - |
| - |
| - |
| - |
| (48,425) |
| (48,425) | |
Stock compensation expense |
| - |
| 12,322 |
| - |
| - |
| 11,558 |
| 23,880 | |
Net income |
| - |
| - |
| - |
| 8,749,373 |
| 1,837,424 |
| 10,586,797 | |
Gain on foreign operations translation |
| - |
| - |
| 2,221,597 |
| - |
| 1,780,992 |
| 4,002,589 | |
Changes in valuation of equity accounted investees |
| - |
| - |
| (38,447) |
| - |
| - |
| (38,447) | |
oss on valuation financial assets at FVOCI |
| - |
| - |
| (153,655) |
| - |
| (44,787) |
| (198,442) | |
Acquisition of treasury stock |
| - |
| (783,223) |
| - |
| - |
| (1,285,957) |
| (2,069,180) | |
Paid-in capital increase of subsidiaries |
| - |
| (2,331,223) |
| - |
| - |
| 2,391,213 |
| 59,990 | |
Others |
| - |
| (109,478) |
| - |
| - |
| 109,478 |
| - | |
|
|
|
|
|
|
|
|
|
|
|
|
| |
December 31, 2018 | W | 5,808,093 |
| 77,349,083 |
| (1,532,526) |
| 118,245,244 |
| 40,010,312 |
| 239,880,206 | |
January 1, 2019 | W | 5,808,093 |
| 77,349,083 |
| (1,532,526) |
| 118,245,244 |
| 40,010,312 |
| 239,880,206 |
Dividends |
| - |
| - |
| - |
| (6,640,159) |
| - |
| (6,640,159) |
Interim dividends |
| - |
| - |
| - |
| (6,640,159) |
| - |
| (6,640,159) |
Dividends of subsidiaries |
| - |
| - |
| - |
| - |
| (1,507,428) |
| (1,507,428) |
Stock compensation expense |
| - |
| 155,749 |
| - |
| - |
| 146,064 |
| 301,813 |
Net income |
| - |
| - |
| - |
| (8,027,404) |
| (3,924,448) |
| (11,951,852) |
Gain on foreign operations translation |
| - |
| - |
| 2,225,621 |
| - |
| 1,423,743 |
| 3,649,364 |
Changes in valuation of equity accounted investees |
| - |
| - |
| 12,937 |
| - |
| - |
| 12,937 |
Loss on valuation financial assets at FVOCI |
| - |
| - |
| (167,643) |
| - |
| (259,332) |
| (426,975) |
Acquisition of treasury stock |
| - |
| (416) |
| - |
| - |
| (534) |
| (950) |
Paid-in capital increase of Subsidiaries |
| - |
| (17,349) |
| - |
| - |
| 17,349 |
| - |
Changes in scope of consolidation |
| - |
| - |
| - |
| - |
| 1,202,651 |
| 1,202,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 | W | 5,808,093 |
| 77,487,067 |
| 538,389 |
| 96,937,522 |
| 37,108,377 |
| 217,879,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2019 and 2018
(In thousands of won) |
| 2019 |
|
| 2018 |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Net income | W | (11,951,852) |
|
| 10,586,797 |
Additions of expenses not involving cash outflows and others |
| 125,395,547 |
|
| 57,970,118 |
Deduction of incomes not involving cash inflows and others |
| (9,150,771) |
|
| (5,503,101) |
Movements in operating assets and liabilities: |
|
|
|
|
|
Increase (decrease) in trade receivables |
| 7,011,917 |
|
| (3,405,726) |
Decrease (increase) in other receivables |
| 667,325 |
|
| (1,056,388) |
Decrease in inventories |
| 17,324,541 |
|
| 4,707,602 |
Increase in advance payments |
| (2,650,065) |
|
| (7,054,711) |
Decrease (increase) in long-term advance payments |
| (9,472,559) |
|
| 1,906,000 |
Increase in other current assets |
| (438,816) |
|
| (2,686,544) |
Increase in other non-current assets |
| (508,765) |
|
| (8,020) |
Decrease in trade payables |
| (32,701,319) |
|
| (4,121,028) |
Decrease in other payables |
| (3,324,301) |
|
| (1,196,702) |
Increase (decrease) in deposits received for travel |
| (29,632,734) |
|
| 6,840,330 |
Increase (decrease) in advances received |
| (3,720,082) |
|
| 2,094,463 |
Increase (decrease) in other financial liabilities |
| 4,289,423 |
|
| (144,272) |
Decrease in other current liabilities |
| (7,376,238) |
|
| (9,040,406) |
Decrease in provisions |
| (1,439,177) |
|
| (1,476,967) |
Increase in long-term other payables |
| 2,711,288 |
|
| 556,418 |
Decrease in other long-term employee benefit |
| (155,500) |
|
| (110,000) |
|
| 44,877,862 |
|
| 48,857,863 |
|
|
|
|
|
|
Interest expense paid |
| (10,926,055) |
|
| (1,249,047) |
Interest income received |
| 3,107,324 |
|
| 3,417,042 |
Dividend income received |
| 512,010 |
|
| 119,158 |
Income taxes paid |
| (8,929,854) |
|
| (30,929,031) |
|
|
|
|
|
|
Net cash provided by operating activities | W | 28,641,287 |
|
| 20,215,985 |
|
|
|
|
|
|
|
|
|
|
|
|
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
For the years ended December 31, 2019 and 2018
(In thousands of won) |
|
| 2019 |
| 2018 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
Cash inflows from investing activities: |
|
|
|
|
|
Decrease in short-term financial instruments |
| W | 269,317,824 |
| 88,807,714 |
Decrease in other receivables |
|
| 466,260 |
| 61,067 |
Disposal of financial assets at FVTPL |
|
| 10,052,783 |
| 9,426,373 |
Disposal of investment in associates and joint venture |
|
| 537,160 |
| 1,313,240 |
Capital reduction of associates and joint venture |
|
| 5,201,270 |
| - |
Disposal of property and equipment |
|
| 18,146,478 |
| 803,047 |
Disposal of intangible assets |
|
| 5,489 |
| 22,871 |
Dispoal of intangible assets being acquired |
|
| 2,773 |
| - |
Decrease in finance lease receivables |
|
| 2,213,198 |
| 686,050 |
Decrease in other financial assets |
|
| 3,566,715 |
| 2,209,249 |
|
|
|
|
|
|
Cash outflows for investing activities: |
|
|
|
|
|
Increase in short-term financial instruments |
|
| 248,239,459 |
| 195,048,977 |
Increase in other receivables |
|
| 6,306 |
| 449,276 |
Acquisition of financial assets at FVTPL |
|
| 7,488,200 |
| 10,684,600 |
Acquisition of financial assets at FVOCI |
|
| 804,240 |
| 598,155 |
Acquisition of investment in associates and joint venture |
|
| 5,064,000 |
| 69,766 |
Acquisition of property and equipment |
|
| 110,882,808 |
| 12,882,813 |
Acquisition of Investment property |
|
| 6,924,548 |
| 222,081 |
Acquisition of intangible assets |
|
| 28,512,859 |
| 6,602,327 |
Acquisition of investment subsidiaries |
|
| - |
| 50,000 |
Acquisition of prepaid lease assets. |
|
| 3,498,000 |
| - |
Increase in other financial assets |
|
| 10,818,123 |
| 7,711,283 |
|
|
|
|
|
|
Net cash provided by (used in) investing activities |
| W | (112,728,593) |
| (130,989,667) |
HANATOUR SERVICE INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
For the years ended December 31, 2019 and 2018
(In thousands of won) |
|
| 2019 |
| 2018 |
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
Cash inflows from financing activities: |
|
|
|
|
|
Proceeds from short-term borrowings |
| W | 216,929,251 |
| 82,541,533 |
Proceeds from long-term borrowings |
|
| 80,576,671 |
| 6,672,390 |
Proceeds from debentures |
|
| - |
| 944,170 |
Paid-in capital increase of subsidiaries |
|
| 1,202,651 |
| 59,990 |
|
|
|
|
|
|
Cash outflows for financing activities: |
|
|
|
|
|
Repayment of short-term borrowings |
|
| 199,112,653 |
| 24,735,331 |
Repayment of current portion of long-term borrowings |
|
| 2,677,044 |
| 6,537,275 |
Repayment of long-term borrowings |
|
| - |
| 192,719 |
Repayment of finance lease liabilities |
|
| 53,541,985 |
| 1,660,047 |
Acquisition of treasury stocks |
|
| 950 |
| 2,034,645 |
Payment of stock issuance expense |
|
| - |
| 48,425 |
Payment of dividends |
|
| 14,787,746 |
| 18,151,302 |
|
|
|
|
|
|
Net cash provided by (used in) financing activities |
|
| 28,588,195 |
| 36,858,339 |
|
|
|
|
|
|
Reclassification to assets and liabilities held for sale |
|
| 7,125,967 |
| 255,165 |
Net increase in cash and cash equivalents |
|
| (48,373,143) |
| (73,660,178) |
Cash and cash equivalents at beginning of year |
|
| 157,699,693 |
| 228,389,932 |
Effect of exchange rate change |
|
| 1,520,222 |
| 2,969,939 |
|
|
|
|
|
|
Cash and cash equivalents at end of year |
| W | 110,846,773 |
| 157,699,693 |
|
|
|
|
|
|
Related Shares:
Hanatour Regs