|General Announcement::Update on the Proposed Convertible Note Issue||03 Jan 2018|
|Change - Change in Corporate Information::Change of Registered Office||14 Dec 2017|
|Change - Change in Corporate Information:: Increase of Paid-Up Share Capital of Wholly-Owned Subsidiary - AT Reservation Network Pte. Ltd.||13 Oct 2017|
|General Announcement::Update on the Proposed Convertible Note Issue||02 Aug 2017|
|REPL::Extraordinary/ Special General Meeting::Voluntary||21 Jul 2017|
|Extraordinary/ Special General Meeting::Voluntary||04 Jul 2017|
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It is Asia’s leading online travel company that offers a global inventory of over 8 million travel products worldwide. Its online booking feature for all-inclusive packages strongly appeals to travellers seeking convenience, instant confirmation and extra savings. Its ability to provide full travel services at packaged prices establishes its distinctive position in the online travel market.
The Group’s revenue decrease by 2.0% (S$1.8 million) to S$88.2 million for the financial year under review when compared to S$90.0 million in the previous financial year in FY2014.
Despite the decrease in Group revenue, the Group’s online business revenue increased by 5.0% (S$3.7 million) for FY2015. However the increase in online business revenue is offset by the decrease in the Group’s offline wholesale business of 33.8% (S$5.5 million) in the current financial year.
The Group’s other operating expenses decreased by 16.0% (S$2.8 million) from S$17.3 million in FY2014 to S$14.5 million in FY2015. The decrease is mainly due to the cut back on Advertising and Promotion expenses (“A&P”) of S$2.9 million from S$6.6 million in FY2014 to S$3.7 million in FY2015. The Group’s expenses for the current financial year would have been lower if not for the set up expenses incurred by the Group’s China unit for its China-centric website.
The Group’s gross profit decreased by S$3.2 million from S$17.6 million in FY2014 to S$14.4 million in FY2015. The main reason for the reduction is reduced its mark up to maintain market share amidst strong online competition.
The Group has managed to grow its online revenue despite aggressively cutting back on its A&P spending. The Group has achieved this against a back drop of aggressive A&P spending by its online competitors to capture market share in the Group’s core S.E Asia and Middle East markets and destinations.
The Group spent S$3.7 million on A&P activities in FY2015 which represents 4% of its revenue where our competitors are spending an average of 25% of their revenue.
The Group’s gross profit decreased as the Group reduced mark up to maintain market share. The Group’s net profit continues to take a hit, as the Group is incurring start-up expenses to set up and expand its China-centric business unit to position the Group as a fully integrated China online domestic, outbound and inbound player.
In the 1st phase of its China expansion plan, the Group will focus on outbound travel into its core S.E.Asian destinations namely Singapore, Malaysia, Philippines, Thailand, Indonesia and Hong Kong where the Group has substantial supplies network and ground service operations. The Group believes its all-inclusive fully integrated flight, hotels, transfer and tours/attraction package product bookable on instant confirmation basis will be very attractive to the independent free and easy outbound travelers from China. The Group has a head start in this product segment compared to other online agencies.
The Group has soft launched its China-centric online platform http://cn.asiatravel.com and is ready to embark on an intensive marketing campaign in China to create awareness in order to expand its China business and revenue in a substantial way.
Referring to the announcements made on 27 November 2015, the Group has entered into a Placement Agreement to issue new shares and warrants to ZhongHong New World International Limited, a wholly owned subsidiary of ZhongHong Holding Co., Ltd, a substantial shareholder of the Group to raise at least S$100 million to fund the Group’s expansion plan into China and to strengthen the Group’s financial position. The proposed Placement Agreement requires the approval of relevant authorities and subject to Shareholders’ approval.
The Group believes that it has put in place vital strategies and corporate action plan that would best enhance shareholders’ value.