30th Mar 2012 09:12
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) 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 |
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, 2011)
(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 | 741,183 | 741,183 | ||
VI. Number of shares distributed (IV-V) | 10,875,002 | 10,875,002 | ||
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 | 19th Term | 18th Term | 17th Term | |
Face amount per stock (won) | 500 | 500 | 500 | |
Current net income (million won) | 19,515 | 24,142 | -4,837 | |
Net income per share (won) | 1,789 | 2,193 | -447 | |
Total amount of cash dividend (million won) | 9,778 | 9,367 | 5,404 | |
Total amount of stock dividend (million won) | - | - | - | |
Tendency of stock dividend (%) | 50.2 | 38.8 | - | |
Yield rate of cash dividend (%) | Common stock | 2.7 | 2.0 | 1.0 |
Preferred stock | - | - | ||
Yield rate of stock dividend (%) | Common stock | - | - | |
Preferred stock | - | - | ||
Cash dividend per share (won) | Common stock | 900 | 850 | 500 |
Preferred stock | - | - | - | |
Stock dividend per share | Common stock | - | - | - |
Preferred stock | - | - | - | |
5. Status of Employees
(As of December 31, 2011)
(Unit: persons)
Classification | No. of employees | |||
Office | Operation | Etc | Total | |
Men | 436 | 356 | 37 | 829 |
Women | 605 | 166 | 109 | 880 |
Total | 1,041 | 522 | 146 | 1,709 |
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 2009, the business environment had been worsened because of bad external issues such as global financial crisis, swine flu, and the abnormal movement of foreign exchange rates. However, from 2010 the macro issues were getting better and due to pent up travel demands, the recovery acceleration exceeded expectations. Steady growth in demand well into 2011 was expected; however, because of the Japanese Earthquake followed by the nation-wide radiation issues in March, the operating leverage started worsening compared to 2010. However, as the market leader, Hanatour still manage to absorb market share from the second-tier agents and went on to achieving the highest volume and sales revenue.
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.
Next plan for this company is to secure Hotels & Resorts supplies in main overseas destinations in the long term and to use those supplies for the Free Individual Tourists with competitive price.
Through this new company, we can expect efficient inventory management more considering actual travel demands and improve our margin from it.
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 | 2011 | 2010 | 2009 | |||
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 |
11,559,690 | 1,942,292 | 11,419,271 | 1,789,745 | 8,495,471 | 1,188,219 | |
Share rate | 16.80% | 15.67% | 13.99% | |||
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 the Domestic Business Hotel by operating its own hotels which will aid us in achieving our goal to become a leading Global Leisure & Entertainment Group in the long term future.
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.
Through HANATOUR ITC Inc, a 100% owned subsidiary of Hanatour, we established HANACITY HOTEL, Inc. It is 50% owned by Hanatour ITC.Inc.
First of its project will be a renovation of Kwan-hoon building, located adjacent to Hanatour HQ, into a 3-star business hotel. The constructions will start in the 2nd quarter of 2012 and will be completed by late 2012. The project will give access to approximately 260 rooms for inbound use.
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, Inc as a leading inbound company. 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 19, 2012, 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.
NON-CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2011, 2010 and JANUARY 1, 2010
December 31, 2011 | December 31, 2010 | December 31, 2009 | |
(In thousands of Korean Won) | |||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | ￦ 66,178,480 | ￦ 64,679,252 | ￦ 37,516,717 |
Short-term financial instruments | 48,953,000 | 45,207,657 | 24,332,500 |
Financial assets at fair value through profit or loss | 1,491,650 | - | - |
Trade receivables | 28,882,055 | 23,359,944 | 20,851,085 |
Other receivables | 2,432,770 | 3,351,967 | 12,901,977 |
Advance payments | 14,994,477 | 17,350,291 | 7,904,361 |
Other current assets | 1,690,650 | 1,618,866 | 1,005,240 |
Total current assets | 164,623,082 | 155,567,977 | 104,511,880 |
NON-CURRENT ASSETS: | |||
Available-for-sale financial assets | 472,168 | 602,368 | 602,368 |
Investment in associates | 1,088,432 | 1,488,210 | 1,488,210 |
Investment in subsidiaries | 35,141,733 | 17,054,892 | 15,017,441 |
Investment property | 6,385,410 | 6,464,022 | 9,162,797 |
Property, plant and equipment | 24,647,691 | 25,262,825 | 21,805,807 |
Intangible assets | 7,432,922 | 7,227,091 | 6,210,234 |
Other financial assets | 5,515,614 | 4,129,270 | 3,256,586 |
Deferred income tax assets | 2,324,587 | 824,117 | 812,371 |
Total non-current assets | 83,008,557 | 63,052,795 | 58,355,814 |
Total assets | ￦ 247,631,639 | ￦ 218,620,772 | ￦ 162,867,694 |
(Continued)
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2011, 2010 AND JANUARY 1, 2010
LIABILITIES AND SHAREHOLDERS' EQUITY | December 31, 2011 | December 31, 2010 | December 31, 2009 | |
(In thousands of Korean Won) | ||||
CURRENT LIABILITIES: | ||||
Trade payables | ￦ 66,121,040 | ￦ 43,005,635 | ￦ 27,444,785 | |
Other payables | 6,318,444 | 8,253,454 | 3,802,850 | |
Income tax payable | 2,617,951 | 7,311,508 | 1,303,549 | |
Deposits received for travel | 42,397,263 | 37,047,603 | 27,586,114 | |
Provision | 420,818 | 571,000 | - | |
Other financial liabilities | 2,283,125 | 2,764,020 | 3,752,616 | |
Other current liabilities | 16,017,090 | 11,669,145 | 8,762,811 | |
Total current liabilities | 136,175,731 | 110,622,365 | 72,652,725 | |
NON-CURRENT LIABILITIES: | ||||
Total non-current liabilities | - | - | - | |
Total liabilities | 136,175,731 | 110,622,365 | 72,652,725 | |
SHAREHOLDERS' EQUITY: | ||||
Capital stock | 5,808,093 | 5,808,093 | 5,808,093 | |
Other contributed capital | 59,590,859 | 64,705,907 | 62,449,314 | |
Retained earnings | 46,056,956 | 37,484,407 | 21,957,562 | |
Total shareholders' equity | 111,455,908 | 107,998,407 | 90,214,969 | |
Total liabilities and shareholders' equity | ￦ 247,631,639 | ￦ 218,620,772 | ￦ 162,867,694 | |
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
2011 | 2010 | |
(In thousands of Korean Won, except per share amounts) | ||
OPERATING REVENUE | ￦ 226,023,534 | ￦ 217,759,372 |
OPERATING EXPENSE | 204,777,334 | 190,501,995 |
OTHER OPERATING REVENUE | 2,133,419 | 2,636,165 |
OTHER OPERATING EXPENSE | 1,303,694 | 2,731,588 |
OPERATING INCOME | 22,075,925 | 27,161,954 |
FINANCIAL INCOME: | ||
Interest income | 3,268,940 | 2,924,201 |
Dividends | 738,108 | 865,437 |
Gain on valuation of financial assets at fair value through profit or loss | 6,502 | - |
4,013,550 | 3,789,638 | |
FINANCIAL EXPENSE: | ||
Impairment of available-for-sale financial assets | 170,000 | - |
170,000 | - | |
GAIN OR LOSS RELATED TO INVESTMENT IN ASSOCIATES AND SUBSIDIARIES: | ||
Gain on disposal of investment in associates | 3,115 | 11,669 |
Gain on disposal of investment in subsidiaries | - | 860 |
Impairment of investment in associates | (449,778) | - |
Impairment of investment in subsidiaries | (110,016) | - |
(556,679) | 12,529 | |
OTHER EXPENSE | 604,602 | 348,281 |
INCOME BEFORE INCOME TAX | 24,758,194 | 30,615,840 |
INCOME TAX EXPENSE | 5,243,534 | 8,534,242 |
NET INCOME | ￦ 19,514,660 | ￦ 22,081,598 |
OTHER COMPREHENSIVE INCOME: | ||
￦ - | - | |
- | - | |
TOTAL COMPREHENSIVE INCOME | ￦ 19,514,660 | ￦ 22,081,598 |
BASIC AND DILUTED NET INCOME PER COMMON SHARE | ￦ 1,789 | ￦ 2,005 |
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
Capital stock | Other contributed capital | Retained earnings | Total | |
January 1, 2010 | ￦ 5,808,093 | ￦ 62,449,314 | ￦ 21,957,562 | ￦ 90,214,969 |
Payment of cash dividend | - | - | (2,701,980) | (2,701,980) |
Payment of interim cash dividend | - | - | (3,852,773) | (3,852,773) |
Acquisition of treasury stock | - | (240,725) | - | (240,725) |
Disposal of treasury stock | - | 858,250 | - | 858,250 |
Exercised stock option rights | - | (909,277) | - | (909,277) |
Stock compensation expense | - | 2,548,345 | - | 2,548,345 |
Net income | - | - | 22,081,598 | 22,081,598 |
December 31, 2010 | ￦ 5,808,093 | ￦ 64,705,907 | ￦ 37,484,407 | ￦ 107,998,407 |
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 |
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF APPROPRIATIONS OF RETAINED EARNINGS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
2011 | 2010 | |
(In thousands or Korean Won) | ||
RETAINED EARNINGS BEFORE APPROPRIATIONS: | ||
Unappropriated retained earnings carried over from prior years | ￦ 25905,757 | ￦ 13,191,522 |
Interim cash dividends | (5,427,521) | (3,852,773) |
Net income (loss) | 19,514,660 | 22,081,598 |
39,992,896 | 31,420,348 | |
APPROPRIATIONS: | ||
Cash dividends | 4,350,000 | 5,514,591 |
4,350,000 | 5,514,591 | |
UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO SUBSEQUENT YEAR | ￦ 35,642,895 | ￦ 25,905,757 |
HANATOUR SERVICE INC.
NON-CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
2011 | 2010 | |
(In thousands of Korean Won) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash inflows from investing activities: | ||
Decrease in short-term financial instruments | ￦ 58,677,657 | ￦ 45,926,679 |
Decrease in other receivables | 1,042,730 | 2,491,540 |
Disposal of investment in subsidiaries | - | 12,528 |
Disposal of property and equipment | 3,807 | 10,274 |
Decrease in other financial assets | 1,453,658 | 1,522,014 |
61,177,852 | 49,963,035 | |
Cash outflows for investing activities: | ||
Increase in short-term financial instruments | 62,423,000 | 66,801,835 |
Increase in financial assets at fair value through profit or loss | 1,485,149 | - |
Increase in accounts receivable-other | 1,120,000 | 1,884,787 |
Acquisition of available-for-sale financial assets | 39,800 | - |
Acquisition of investment in associates | 50,000 | - |
Acquisition of investment in subsidiaries | 18,004,550 | 2,037,451 |
Acquisition of property and equipment | 681,796 | 2,028,926 |
Acquisition of intangible assets | 2,733,220 | 3,028,594 |
Increase in other non-current assets | 1,969,501 | 2,404,700 |
(88,507,016) | (78,186,293) | |
(27,329,164) | (28,223,258) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash inflows from financing activities: | - | - |
Cash outflows for financing activities: | ||
Acquisition of treasury share | 7,972,244 | 240,725 |
Payment of dividends | 10,942,112 | 6,554,753 |
(18,914,356) | (6,795,478) | |
(18,914,356) | (6,795,478) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,492,932 | 27,165,625 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR | 64,679,252 | 37,516,717 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | 6,296 | (3,090) |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | ￦ 66,178,480 | ￦ 64,679,252 |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2011, 2010 and JANUARY 1, 2010
December 31,2011 | December 31,2010 | December 31,2009 | |
(In thousands of Korean Won) | |||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | ￦ 91,205,775 | ￦ 80,296,694 | ￦ 50,479,755 |
Short-term financial instruments | 73,989,161 | 50,300,205 | 29,415,340 |
Financial assets at fair value through profit or loss | 1,491,650 | - | - |
Trade receivables | 37,670,302 | 31,698,369 | 26,365,853 |
Other receivables | 6,050,578 | 5,997,434 | 16,156,467 |
Inventories | 352,481 | 85,682 | 78,140 |
Advance payments | 24,612,501 | 20,322,872 | 10,505,737 |
Other current assets | 2,358,869 | 2,416,310 | 1,197,606 |
Current income tax assets | 161,621 | 18,157 | 36,848 |
Total current assets | 237,892,938 | 191,135,723 | 134,235,746 |
NON-CURRENT ASSETS: | |||
Available-for-sale financial assets | 472,317 | 602,508 | 602,495 |
Investment in associates | 1,004,691 | 1,417,591 | 1,489,290 |
Investment property | 6,385,410 | 6,464,022 | 9,162,797 |
Property, plant and equipment | 28,292,994 | 30,570,561 | 28,445,484 |
Intangible assets | 9,026,924 | 9,133,867 | 9,028,595 |
Other financial assets | 9,776,689 | 8,089,426 | 6,408,785 |
Deferred income tax assets | 3,316,479 | 1,372,429 | 890,194 |
Other non-current assets | 180,478 | 100,450 | 232,404 |
Total non-current assets | 58,455,982 | 57,750,854 | 56,260,044 |
Total assets | ￦ 296,348,920 | ￦ 248,886,577 | ￦ 190,495,790 |
(Continued)
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AS OF DECEMBER 31, 2011, 2010 AND JANUARY 1, 2010
LIABILITIES AND SHAREHOLDERS' EQUITY | December 31.2011 | December 31,2010 | December 31,2009 | |
(In thousands of Korean Won) | ||||
CURRENT LIABILITIES: | ||||
Trade payables | ￦ 64,740,986 | ￦ 44,491,013 | ￦ 21,415,842 | |
Other payables | 11,976,678 | 18,815,297 | 15,131,639 | |
Income tax payable | 3,018,089 | 8,061,842 | 1,514,486 | |
Deposits received for travel | 46,630,271 | 40,597,870 | 29,206,482 | |
Advanced receipts | 12,076,076 | 8,150,690 | 7,235,422 | |
Short-term borrowings | 14,391,555 | 3,410,421 | 6,389,005 | |
Current portion of long-term borrowings | 512,202 | 324,495 | 21,277 | |
Other financial liabilities | 2,048,704 | 2,063,606 | 2,828,390 | |
Provision | 425,123 | 576,162 | 5,600,087 | |
Other current liabilities | 5,972,875 | 6,133,511 | 4,690,383 | |
Total current liabilities | 161,792,559 | 132,624,907 | 94,033,013 | |
NON-CURRENT LIABILITIES: | ||||
Long-term other payables | 426,718 | 1,557,308 | 2,481,117 | |
Long-term borrowings | 2,473,608 | 567,228 | 897,715 | |
Deferred income tax liabilities | 122,157 | 64,526 | 4,107 | |
Total non-current liabilities | 3,022,483 | 2,189,062 | 3,382,939 | |
Total liabilities | 164,815,042 | 134,813,969 | 97,415,952 | |
SHAREHOLDERS' EQUITY: | ||||
Capital stock | 5,808,093 | 5,808,093 | 5,808,093 | |
Other contributed capital | 59,596,910 | 64,713,696 | 62,380,712 | |
Components of other capital | 299,360 | 108,139 | (5,578) | |
Retained earnings | 50,556,316 | 40,447,061 | 22,318,241 | |
Equity attributable to the owners of the Parent Company | 116,260,679 | 111,076,989 | 90,501,468 | |
Non-controlling interests | 15,273,199 | 2,995,619 | 2,578,370 | |
Total shareholders' equity | 131,533,878 | 114,072,608 | 93,079,838 | |
Total liabilities and shareholders' equity | ￦ 296,348,920 | ￦ 248,886,577 | ￦ 190,495,790 | |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
2011 | 2010 | |
(In thousands of Korean Won, except per share amounts) | ||
OPERATING REVENUE | ￦ 267,812,824 | ￦ 258,001,229 |
OPERATING EXPENSE | 244,235,750 | 226,403,930 |
OTHER OPERATING REVENUE | 3,553,656 | 4,325,286 |
OTHER OPERATING EXPENSE | 2,967,497 | 4,297,403 |
OPERATING INCOME | 24,163,233 | 31,625,182 |
FINANCIAL INCOME: | ||
Interest income | 4,092,514 | 3,230,931 |
Gain on valuation of financial assets at fair value through profit or loss | 6,501 | - |
4,099,015 | 3,230,931 | |
FINANCIAL EXPENSE: | ||
Interest expense | 130,074 | 280,453 |
Loss on disposal of financial assets at fair value through profit or loss | - | 1,303 |
Impairment of available-for-sale financial assets | 170,000 | - |
300,074 | 281,756 | |
GAIN OR LOSS RELATED TO INVESTMENT IN ASSOCIATES | ||
Gain on valuation using equity method | 115,365 | 188,009 |
Loss on valuation using equity method | - | (78,153) |
Gain on disposal of investment in associates | 3,116 | 11,668 |
Impairment of investment in associates | (448,854) | - |
(330,373) | 121,524 | |
OTHER EXPENSE | 642,502 | 392,653 |
INCOME BEFORE INCOME TAX | 26,989,299 | 34,303,228 |
INCOME TAX EXPENSE | 5,534,946 | 9,320,252 |
NET INCOME | ￦ 21,454,353 | ￦ 24,982,976 |
(Continued)
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
2011 | 2010 | |
(In thousands Korean Won, except per share amounts) | ||
OTHER COMPREHENSIVE INCOME: | ||
Gain on valuation of investment securities accounted for using the equity method | ￦ 16,894 | ￦ (45,509) |
Gain (loss) on foreign business translation | 175,181 | 169,884 |
192,075 | 124,375 | |
TOTAL COMPREHENSIVE INCOME | 21,646,428 | 25,107,351 |
NET INCOME ATTRIBUTABLE TO: | ||
Owners of the Parent Company | 21,051,367 | 24,683,573 |
Non-controlling interests | 402,986 | 299,403 |
21,454,353 | 24,982,976 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||
Owners of the Parent Company | 21,235,107 | 24,797,290 |
Non-controlling interests | 411,320 | 310,060 |
21,646,428 | 25,107,351 | |
BASIC AND DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO OWNERS OF PARENT COMPANY | ￦ 1,930 | ￦ 2,242 |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
Capital stock | Other contributed capital | Components of other capital | Retained earnings | Non-controlling interests | Total | |
(In thousands of Korean Won) | ||||||
January 1, 2010 | ￦ 5,808,093 | ￦ 62,380,712 | ￦ (5,578) | ￦ 22,318,241 | ￦ 2,578,370 | ￦ 93,079,838 |
Payment of cash dividend | - | - | - | (2,701,980) | - | (2,701,980) |
Payment of interim cash dividend | - | - | - | (3,852,773) | - | (3,852,773) |
Cash dividend of subsidiaries | - | - | - | - | (100,810) | (100,810) |
Paid-in capital increase of subsidiaries | - | 66,609 | - | - | 206,921 | 273,530 |
Acquisition of treasury stock | - | (240,725) | - | - | - | (240,725) |
Disposal of treasury stock | - | 858,250 | - | - | - | 858,250 |
Exercised stock option rights | - | (909,277) | - | - | - | (909,277) |
Stock compensation expense | - | 2,548,345 | - | - | - | 2,548,345 |
Net income | - | - | - | 24,683,573 | 299,403 | 24,982,976 |
Gain (loss) on foreign business translation | - | - | 159,226 | - | 10,657 | 169,883 |
Changes in valuation of equity-accounted investees | - | - | (45,509) | - | - | (45,509) |
Disposal of investment in subsidiaries | - | 9,782 | - | - | (8,922) | 860 |
Changes in scope of consolidation | - | - | - | - | 10,000 | 10,000 |
December 31, 2010 | ￦ 5,808,093 | ￦ 64,713,696 | ￦ 108,139 | ￦ 40,447,061 | ￦ 2,995,619 | ￦ 114,072,608 |
(Continued)
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
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 |
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
2011 | 2010 | |
(In thousands of Korean Won) | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Cash generated from operations: | ||
Net income | ￦ 21,454,353 | ￦ 24,982,976 |
Additions of expenses not involving cash outflows and others | 20,492,372 | 21,166,483 |
Deduction of incomes not involving cash inflows and others | (4,494,905) | (3,776,321) |
Movements in operating assets and liabilities: | ||
Increase in trade receivables | (5,911,876) | (2,040,647) |
Decrease (Increase) in other receivables | (1,190,636) | 10,877,859 |
Increase in inventories | (266,799) | (7,541) |
Increase in advanced payments | (4,224,036) | (10,130,579) |
Increase in other current assets | (20,022) | (1,293,816) |
Increase in trade payables | 16,437,127 | 21,392,832 |
Decrease in other payables | (4,862,373) | (2,260,193) |
Increase in deposits received for travel | 6,079,993 | 11,410,516 |
Increase in advanced receipts | 3,951,440 | 852,781 |
Increase (Decrease) in other financial liabilities | 83,628 | (912,619) |
Increase (Decrease) in provision | (1,347,873) | 167,566 |
Increase (Decrease) in other current liabilities | (1,497,157) | 1,140,208 |
Increase (Decrease) in long-term other payables | (65,786) | 103,070 |
Payment of severance benefits | (1,175,891) | (3,616,001) |
43,441,559 | 68,056,574 | |
Interest expense paid | (52,975) | (259,551) |
Interest income received | 3,777,500 | 2,732,716 |
Dividend income received | 181,396 | 136,047 |
Income taxes paid | (12,654,694) | (3,313,690) |
￦ 34,692,786 | ￦ 67,352,096 | |
(Continued)
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
2011 | 2010 | |
(In thousands of Korean Won) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash inflows from investing activities: | ||
Decrease in short-term financial instruments | ￦ 61,822,044 | ￦ 50,554,670 |
Decrease in financial assets at fair value through profit or loss | - | 8,953 |
Decrease in other receivables | 134,329 | 840,478 |
Disposal of investment in subsidiaries | - | 12,528 |
Disposal of property and equipment | 153,085 | 47,276 |
Decrease in other financial assets | 1,865,069 | 2,403,675 |
63,974,527 | 53,867,580 | |
Cash outflows for investing activities: | ||
Increase in short-term financial instruments | 85,511,000 | 71,415,964 |
Increase in financial assets at fair value through profit or loss | 1,485,149 | 10,256 |
Increase in accounts receivable-other | 236,029 | 904,345 |
Acquisition of available-for-sale financial assets | 39,800 | - |
Acquisition of investment in associates | 86,906 | - |
Acquisition of investment in subsidiaries | 4,550 | - |
Acquisition of property and equipment | 1,032,575 | 2,525,400 |
Acquisition of intangible assets | 3,022,701 | 3,109,664 |
Increase in other financial assets | 2,735,597 | 3,627,117 |
Increase in other non-current assets | 1,250 | - |
(94,155,557) | (81,592,746) | |
(30,181,030) | (27,725,166) | |
(Continued)
HANATOUR SERVICE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
2011 | 2010 | |
(In thousands of Korean Won) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash inflows from financing activities: | ||
Proceeds from short-term borrowings | 10,972,649 | 4,975,446 |
Proceeds from long-term borrowings | 2,504,358 | - |
Proceeds from paid-in capital increase | 12,000,000 | 83,530 |
25,477,007 | 5,058,976 | |
Cash outflows for financing activities: | ||
Acquisition of treasury share | 7,972,244 | 240,726 |
Repayment of short-term borrowings | (272,711) | 8,242,230 |
Repayment of current portion of long-term borrowings | 595,289 | 115,824 |
Payment of dividends | 11,065,560 | 6,655,563 |
(19,360,382) | (15,254,343) | |
6,116,625 | (10,195,367) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 10,628,381 | 29,431,563 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR | 80,296,694 | 50,479,755 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | 280,700 | 385,376 |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | ￦ 91,205,775 | ￦ 80,296,694 |
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, Chief Executive Officer and Director | January 1, 2005(Officer) December 23, 1995(Director) |
HuynSyuk Choi | President, Chief Executive Officer and Director | January 1, 2005(Officer) October 25, 1993(Director) |
JangSuk Han | Outside Director | March 25, 2005 |
JeongWoo Byun | Outside Director | March 23, 2006 |
KiHong Park | Outside Director | March 20, 2007 |
Ⅴ. List of major shareholders
Shareholder | Number of shares | Percentage |
Sanghwan Park | 960,020 | 8.26% |
HeeSeok Kweon | 724,020 | 6.23% |
HyunSeok Choi | 468,020 | 4.03% |
Ⅵ. Status of Affiliated Companies and Others
Namgang Travel Co., Ltd. | HANATOUR Europe S.R.L (50%) | |
Hana Tourist Co;,Ltd. (30.23%) | HANATOUR USA Inc. (100%) | |
Jeju Hanatour Co., Ltd. (77.35%) | HANATOUR Europe Ltd (70%) | |
Hana Youth Co., Ltd. (100%) | HANATOUR International Japan | |
Hanauhak INC.(51%) | HANATOUR Japan Co., Ltd (70%) | |
Hana Tour International Co., Ltd. (100%) | HANATOUR Czech S.R.O. (100%) | |
Tour Marketing Korea Co., Ltd. (70%) | HANATOUR CHINA (100%) | |
OK Tour Co., Ltd. (39%) | HANATOUR PTY Ltd (100%) | |
Webtour.Co,.Ltd.(80.12%) | UI Coach (100%) | |
Korea Travel Service INC (60%) | HANATOUR Hong Kong Co., Ltd (100%) | |
HANA T&MEDIA Co, Ltd (51%). | HANATOUR PTE Ltd. (100%) | |
CJ Worldis INC (50%) | HANATOUR Taiwan Service Inc. (100%) | |
Hana Business Travel (100%) | HANATOURIST USA, INC | |
Nex Tour.Co., Ltd. | ||
H&T Marketing (80%) | ||
HT Shop (100%) |
| |
Hotel & Air.com, INC (60%) | ||
Travel gonggong INC. (50%) |
Ⅶ. Investment stocks
| Ownership Company | Ownership Ratio (%) | No. of Shares |
Hana Business Travel | Hanatour | 100 | 20,000 |
Hanatourist Service Inc. | " | 30.23 | 906,981 |
HANATOUR USA Inc. | " | 100 | 225,000 |
Tour Marketing Korea Co.,Ltd | " | 70 | 140,000 |
Nex Tour Co.,Ltd. | Web tour | 100 | 40,000 |
HANATOUR Europe S.R.L | Hanatour | 50 | 50 |
Namgang Travel Co., Ltd. | Hana Business Travel | 100 | 15,000 |
Jeju HANATOUR Service Inc. | Hanatour | 77.35 | 54,178 |
Hanayouth Service Inc. | " | 100 | 40,000 |
HANATOUR International Service Inc. |
" | 100 | 440,000 |
OK Tour Service Inc. | " | 39 | 3,666,000 |
Hana T & Media Co., Ltd | " | 51 | 510,000 |
Hanauhak INC | " | 51 | 714,000 |
Web tour | " | 80.12 | 838,995 |
HANATOUR Europe Limited | " | 70 | 4,200 |
Korea Travel Sevice INC | " | 60 | 60,000 |
HANATOUR Pte Ltd. | " | 100 | 2,142,000 |
HANATOUR Japan Ltd. | " | 70 | 1,400 |
HANATOUR CZECH | " | 100 | 9,476,000 |
CJ Worldis INC | " | 50 | 8,000,001 |
HANATOUR Hong Kong Co., Ltd | " | 100 | 5,000,000 |
HANATOUR CHINA | " | 100 | - |
HANATOUR PTY LTD | " | 100 | 600,000 |
H&T Marketing | " | 80 | 80,000 |
HT Shop | " | 100 | 200,000 |
HANATOUR Taiwan Service Inc. | " | 100 | - |
Hanagolf Service Inc. | " | 19 | 228,000 |
Seoul Tour Marketing Inc. | " | 2.89 | 120,000 |
Hani Tour Inc. | " | 9.54 | 19,078 |
Hotel & Air.com, INC | " | 60 | 3,600,000 |
Travel gonggong INC. | " | 50 | 100,000 |
UI Coach | HANATOUR Japan Co., Ltd | 100 | - |
Hanafil Golf & Tour, Inc. | Hanatour | 6.8 | 17,000 |
HANATOUR International Japan | HANATOUR International Service Inc. | 100 | 900 |
HANATOURIST USA, INC | HANATOUR USA Inc. | 43.24 | 39,925 |
HANATOU Network, INC | Hanatour | 19.9 | 398,000 |
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, 2011. 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, 2011, the Company's IACS has been appropriately designed and is operating effectively as of December 31, 2011, 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, 2011, and we did not review its IACS subsequent to December 31, 2011. 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 19, 2012
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, 2011.
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, 2011, in all material respects, in accordance with the IACS Framework.
February13, 2012
Cho, GyungHun, Internal Accounting Control Officer |
Choi, HuynSyuk , Chief Executive Officer or President |
Related Shares:
Hanatour Regs