Could Crypto Help This Japanese Travel Company Survive? EJINSIGHT

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It doesn’t take a scientist to figure out how many travel agencies have been closed due to the border closures in Hong Kong. But a listed company has found a new way to survive, although it still takes time to see how it works.

Take the case of WWPKG, one of the biggest names locals associate with Japanese band tours. Shareholders of the listed company in the growth business market might be shocked to learn that a significant portion of its revenue actually came from cryptocurrency mining.

That’s according to its annual results ending March 31, 2022 released yesterday, revealing that the company recorded HK$1.18 million in revenue from cryptocurrency mining, more than 40% of its revenue. annual business.

To be fair, it’s not a big investment, but it’s become important for a company that has seen its group travel revenue plummet under the pandemic.

WWPKG, which launched the crypto business last July, reported a trading profit of HK$17,000 during the period but was still sitting on a paper loss of HK$2.4 million. Kong at the end of March (and we can only wish him the best in avoiding Bitcoin’s 50% crash in the past three months).

In an announcement, the company told shareholders: “Given the expected slight recovery in overseas package travel, which is based on the latest developments of the pandemic and travel restrictions around the world, in particular for Japan, and the quarantine policy implemented by the Hong Kong SAR government, the Group will continue to exploit cryptocurrency mining as a means of expanding the Group’s revenue stream and its capacity and potential future income.

The gradual opening of travel in Asia could help WWPKG, but it may take some time to return to pre-pandemic levels, given that the price of group travel in Japan has jumped at least three times to reach at least HK$40,000 including one week quarantine fee in Hong Kong.

It’s also why the company isn’t exactly keen on resuming visa-free entry to South Korea from next Friday after more than two years.

WWPKG executive director Yuen Chun-ning told local media he wouldn’t expect big responses as no Korean tour from his agency has left since the country opened up to foreign tourists. on June 1, adding that quarantined hotel rooms in Hong Kong cannot meet the demand of returning tourists as many foreign students will return to the city for summer vacation.

WWPKG isn’t the only company expanding into crypto during downtime. Meitu, who runs the popular beauty app, racked up US$100 million worth of Bitcoin last April.

Time can tell if this is “diworsification”, but it is common for Hong Kong and Chinese companies to speculate for survival.

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