Financial Performance - For the year ended June 30, 2023, the Group recorded revenue of approximately HK$117.61 million, representing an increase of approximately 30.61% compared to HK$90.05 million in 2022[13]. - Loss attributable to owners of the Company for the Year amounted to approximately HK$28.54 million, an improvement from a loss of approximately HK$32.89 million in 2022[13]. - Revenue from private education services was approximately HK$27.13 million, slightly up from HK$26.33 million in 2022[16]. - Revenue from secondary tutoring services decreased by approximately 25.83% to HK$0.89 million compared to HK$1.20 million in the previous year[17]. - Revenue from directly-owned education centres was approximately HK$20.23 million, a slight increase of approximately 1.86% from HK$19.86 million in the last financial year[19]. - Revenue from franchised centres remained stable at approximately HK$4.08 million compared to HK$3.91 million in 2022[19]. - Revenue from gaming product sales was approximately HK$83.99 million, an increase from HK$54.04 million in 2022[24]. - The Group's other income recorded a net gain of approximately HK$1.06 million, down from approximately HK$4.54 million in the previous year, primarily due to an impairment loss on trade receivables[68][73]. - Staff costs decreased by approximately HK$18.92 million or approximately 41.15% compared to the last financial year, mainly due to the absence of one-off equity settled share-based transactions[69][74]. - The Group's total net unrealized fair value loss for the year was approximately HK$15.90 million, primarily from listed equity securities[57]. Revenue Breakdown - Revenue from English training and examination courses was approximately HK$85,000, up from HK$77,000 in 2022[21]. - Revenue from STEAM education services was approximately HK$1.83 million, representing a growth of approximately 281.25% compared to HK$0.48 million in the last financial year[23]. - Revenue from VR product sales and related services was approximately HK$4.82 million, down from HK$6.43 million in 2022[24]. - Revenue from STEAM education services, VR, and digital entertainment included approximately HK$4.82 million from VR products, approximately HK$1.83 million from STEAM education services, and approximately HK$83.99 million from gaming products, showing significant growth in gaming products from approximately HK$54.04 million in 2022[66][71]. Expenses and Costs - The Group's marketing expenses increased to approximately HK$3.80 million during the Year[13]. - Finance costs rose to approximately HK$2.10 million, contributing to the overall loss[13]. - Impairment loss on trade and other receivables totaled approximately HK$7.93 million during the Year[13]. - Other operating expenses increased by approximately HK$3.00 million or approximately 37.93% compared to the last financial year, primarily due to an increase in business entertainment expenses of approximately HK$1.09 million[81]. - Tutor contractor fees increased by approximately HK$0.42 million or 20.13% to approximately HK$2.48 million, consistent with increased revenue from STEAM education services[70][75]. Loans and Receivables - As of June 30, 2023, all loans receivables of China Rich were unsecured loans, which management believes is reasonable for higher interest yield[36]. - The Group made impairment provisions on loan and interest receivables based on future macroeconomic conditions and borrowers' creditworthiness[37]. - As of June 30, 2023, the total outstanding principal amount of loan receivables was approximately HK$17.35 million, all of which were unsecured loans from seven individual borrowers[43]. - The five largest loan receivables and interest receivables amounted to approximately HK$16.22 million, representing 92.68% of total loan receivables, with the largest customer accounting for approximately HK$7.28 million or 41.60%[47]. - The total principal and interest of loan receivables that were past due and impaired as of June 30, 2023, was approximately HK$3.52 million[48]. - The impairment loss recognized for loans receivable and interest was approximately HK$7,050,000 for the year, compared to HK$4,460,000 in 2022[104]. Assets and Investments - The Group's financial assets at fair value through profit or loss (FVPL) had a fair value of approximately HK$65.56 million, with a loss in fair value change of approximately HK$13.98 million for the year[50]. - The Group's total investments in listed equity securities amounted to approximately HK$34.69 million, representing 20.47% of the Group's audited total assets[55]. - The Group's unlisted equity funds had a fair value of approximately HK$11.95 million, accounting for 7.05% of total assets[55]. - The Group acquired listed securities in 21 companies and disposed of securities in 13 companies during the year[51]. Operational Overview - The Group had 7 directly-owned education centres and 29 franchised centres as of June 30, 2023, with 3 new franchisees joining during the Year[19]. - Directly operated education centers had approximately 15,300 course enrollments, slightly down from 15,500 in 2022[21]. - The Group aims to explore more business sectors and provide professional education support to both retail clients and corporations[91]. - The Group's principal activity is investment holding, with details of its subsidiaries' activities provided in the consolidated financial statements as of June 30, 2023[143]. Risks and Challenges - The Group faces sourcing risk due to reliance on tutors for providing quality tutoring services, which may impact revenue if contracts are not renewed[145]. - Business interruption risk is present as the Group rents education centers, and failure to renew leases could adversely affect operations[151]. - The private tutoring industry is highly competitive, with a decrease in student numbers and an increase in small tutoring centers intensifying market competition[152]. - Infringement risk exists due to the importance of intellectual property rights, with potential litigation affecting financial position and brand image[153]. - The Group will actively monitor legal updates and adjust internal policies to avoid breaches of regulatory requirements[156]. Corporate Governance and Compliance - The Group has complied with various laws and regulations, including the Employment Ordinance and the Personal Data (Privacy) Ordinance, to safeguard employee interests and data privacy[170][167]. - The Group's financial risk management objectives and policies are detailed in Note 6 to the Consolidated Financial Statements[158]. - The Group's operational analysis by segments is provided in Note 7 to the Consolidated Financial Statements[178]. Shareholder Information - The Board does not recommend the payment of a final dividend for the Year, consistent with the previous year where no dividend was paid[179]. - The Company does not have any substantial shareholders among the five largest customers[197]. - There are no provisions for pre-emptive rights under the Company's bye-laws or Bermuda laws, meaning new shares do not have to be offered to existing shareholders on a pro rata basis[192]. Charitable Contributions - The Group's charitable donations during the Year amounted to HK$17,000, an increase from HK$15,000 in 2022[181].

Financial Performance - The company recorded revenue of approximately HKD 117,610,000 for the year ended June 30, 2023, an increase of about 30.61% compared to HKD 90,050,000 in the previous fiscal year[2]. - The loss attributable to the owners of the company was approximately HKD 28,540,000, an improvement from a loss of HKD 32,890,000 in 2022[2]. - The company reported a consolidated loss attributable to owners of HKD 28,541,000 for the year ended June 30, 2023, compared to a loss of HKD 32,892,000 for the previous year, representing a decrease of approximately 10.2%[38]. - For the period ending June 30, 2023, the total revenue was HKD 117,612,000, an increase of 30.7% compared to HKD 90,048,000 in 2022[133]. - The group reported a loss attributable to owners of approximately HKD 28,540,000, an improvement from a loss of approximately HKD 32,890,000 in the previous year[192]. Revenue Segmentation - Revenue from private education services was HKD 27,125,000, while revenue from VR and digital entertainment was HKD 88,813,000, up from HKD 60,475,000 in the previous year[12]. - The company’s revenue from private education services was HKD 27,125,000, while revenue from digital entertainment reached HKD 88,813,000, contributing to a total revenue of HKD 117,612,000[53]. - The revenue from the STEAM education services and VR and digital entertainment segments included approximately HKD 83,990,000 from game product trading, an increase from approximately HKD 54,040,000 in the previous year[181]. - Customer A's revenue increased significantly to HKD 39,671,000 in 2023 from HKD 11,625,000 in 2022, indicating a growth of 241%[83]. Financial Position - The current ratio as of June 30, 2023, was 2.42, while the debt-to-equity ratio was 33.15%[2]. - Total assets increased to HKD 129,164,000 in 2023 from HKD 123,763,000 in 2022, reflecting a growth of about 4.3%[41]. - The company’s total equity decreased to HKD 112,223,000 as of June 30, 2023, from HKD 146,430,000 in 2022, reflecting a decline of 23.3%[136]. - The total amount of outstanding loans and interest as of June 30, 2023, was approximately HKD 3,519,000, a decrease of 66.7% from HKD 10,567,000 in 2022[115]. Expenses and Costs - The company's total employee costs decreased to HKD 27,058,000 in 2023 from HKD 45,975,000 in 2022, reflecting a significant reduction in expenses[65]. - Marketing expenses increased dramatically by approximately HKD 3,010,000 or about 382.34% to approximately HKD 3,800,000, mainly due to the expansion of various marketing activities, including collaboration with a YouTube channel[164]. - Other operating expenses rose by approximately HKD 3,000,000 or about 37.93%, primarily due to increased business entertainment expenses of approximately HKD 1,090,000 compared to the previous fiscal year[166]. - The group recorded financial costs of approximately HKD 2,100,000 for the year, compared to HKD 950,000 in 2022, attributed to lease liabilities and other borrowings[167]. Asset Management - The company’s cash and cash equivalents decreased to HKD 13,862,000 from HKD 14,512,000, a decline of about 4.5%[41]. - The company’s cash and cash equivalents, excluding bank balances, were reported at HKD 111,608,000, down from HKD 145,801,000 in the previous year[136]. - The company’s interest income from loans decreased to HKD 1,674,000 in 2023 from HKD 3,245,000 in 2022, a decline of 48.3%[133]. - The company’s interest income from bank deposits was HKD 4,000 in 2023, compared to no income in the previous year, indicating a potential improvement in cash management[62]. Impairment and Losses - The impairment loss on trade receivables was HKD 3,925,000 for the year ended June 30, 2023, compared to HKD 1,737,000 in the previous year, indicating an increase in credit risk[62]. - The company reported a significant increase in the impairment loss on other receivables amounting to HKD 4,000,000 in 2023, with no such loss reported in the previous year[62]. - The total amount of overdue and impaired receivables as of June 30, 2023, was approximately HKD 3,520,000, down from approximately HKD 10,570,000 in 2022, with a reversal of impairment losses of approximately HKD 7,050,000 recognized during the year[159]. Strategic Focus and Future Plans - The company is evaluating the impact of new accounting standards on its financial statements, indicating a proactive approach to compliance and reporting[24]. - The group aims to expand its business into larger markets and new segments by integrating traditional learning with technology-based learning, enhancing overall effectiveness for students and the company[168]. - The group is committed to becoming a comprehensive education service provider by diversifying and expanding its business in the education sector, responding flexibly to market dynamics and opportunities[168]. - The group anticipates synergistic effects and complementary benefits from new learning models and its diversified business approach, aiming to provide more professional educational support to retail customers and enterprises[168].

Revenue Performance - The Group recorded revenue of approximately HK$48.3 million, representing an increase of approximately 14.7% compared to approximately HK$42.1 million for the corresponding period in 2021[2]. - Revenue from secondary tutoring services, English language training, and test preparation courses was approximately HK$13.0 million, a decrease of approximately 18.2% from approximately HK$15.9 million for the corresponding period in 2021[16]. - Revenue from VR product trading and related services was approximately HK$3.5 million, up from approximately HK$2.8 million in 2021[19]. - STEAM education services generated revenue of approximately HK$0.9 million, an increase from approximately HK$0.2 million in 2021[19]. - Revenue from trading gaming products was approximately HK$30.0 million, compared to approximately HK$21.9 million in 2021[19]. - Revenue from secondary tutoring services decreased to approximately HK$436,000, representing a decline of approximately 35.8% compared to approximately HK$679,000 in the corresponding period in 2021[84]. - Revenue from English language training and test preparation courses increased to approximately HK$85,000, reflecting an increase of approximately 165.6% compared to approximately HK$32,000 in the corresponding period in 2021[84]. - The Group's total revenue for the period was approximately HK$48.3 million, an increase of approximately 14.7% from approximately HK$42.1 million in the corresponding period in 2021[86]. - Trading of VR products and related services saw revenue rise to approximately HK$3.5 million, marking a 25.0% increase from approximately HK$2.8 million in the corresponding period in 2021[87]. - Revenue from trading of gaming products increased to approximately HK$30.0 million, representing a growth of 37.0% compared to approximately HK$21.9 million in the corresponding period in 2021[105]. Financial Performance - The Group incurred a loss of approximately HK$5.9 million for the six months ended December 31, 2022, compared to a loss of approximately HK$4.8 million in 2021[30]. - Loss attributable to owners of the Company for the Period was approximately HK$6.5 million, compared to approximately HK$4.6 million in 2021, with loss per share remaining at approximately HK$0.01[113]. - Loss before tax for the period was HK$5,872,000, compared to a loss of HK$4,760,000 in the prior year, indicating a 23.3% increase in losses[196]. - Total comprehensive expense for the period was HK$5,872,000, compared to HK$4,759,000 in the previous year, representing a 23.3% increase[196]. - Other income, gains, and losses recorded a net gain of approximately HK$4.8 million, up from approximately HK$1.4 million in 2021, mainly due to a reversal of impairment loss on loan receivables[129]. - Other income recorded a net gain of approximately HK$4.8 million, up from approximately HK$1.4 million in 2021, primarily due to a reversal of impairment losses on receivables of about HK$3.8 million[134]. Cash Flow and Liquidity - The Group's cash and cash equivalents at the end of the period were approximately HK$28.4 million, up from HK$21.5 million at the beginning of the period[59]. - The current ratio decreased to approximately 3.2 times as of December 31, 2022, down from approximately 7.6 times as of June 30, 2022[27]. - The total amount of interest-bearing borrowing was HK$22.0 million, all due within one year, compared to HK$nil on June 30, 2022[146]. - The Group's total gross loan and interest receivables amounted to approximately HK$22.4 million, down from approximately HK$30.0 million as of June 30, 2022[46]. - The Group maintained strict control over its receivables, assessing credit risk due to adverse financial conditions caused by the COVID-19 pandemic[47]. - The Group has established appropriate liquidity risk management systems to manage its short, medium, and long-term funding needs[172]. Business Strategy and Operations - The Group operates one learning center under the "Modern Education" brand and seven directly-owned education centers along with 29 franchised centers under the "Modern Bachelor Education" brand[4]. - The Group has adopted a hybrid learning model combining in-person and remote learning to accommodate students not comfortable returning to campus[16]. - The management believes in "from crisis comes opportunity" and is actively exploring market opportunities to enhance resource deployment and introduce online classes[17]. - The Group has developed a hybrid business model in the education industry, integrating metaverse experiences with traditional learning[8]. - The introduction of the UFO Group aims to enhance the Group's education services by adopting new technologies such as Metaverse and Web 3.0, responding to market dynamics and opportunities[117]. - The introduction of VR, augmented reality, and artificial intelligence from the UFO Group is expected to enhance the Group's educational offerings and facilitate international market expansion[166]. - The Group plans to diversify its game product distribution and increase sales through e-commerce and esports events in the coming year[171]. Employee and Operational Costs - Staff costs decreased to approximately HK$13.4 million during the Period from approximately HK$14.3 million in the corresponding period in 2021, mainly due to a reduction in headcount[130]. - Tutor contractor fees increased slightly to approximately HK$1.4 million during the Period, attributed to higher enrollments in emerging STEAM educational services[131]. - Marketing expenses increased by approximately HK$1.7 million or approximately 278.6% compared to the corresponding period in 2021, primarily due to extended marketing activities[132]. - Other operating expenses increased by approximately HK$0.3 million or 7.6% compared to the corresponding period in 2021, mainly due to various operating expenses[112]. Financial Position and Ratios - The gearing ratio increased to approximately 25.4% as of December 31, 2022, compared to approximately 11.3% as of June 30, 2022[27]. - The Group's investment portfolio included listed securities in 13 companies and unlisted funds, with significant investments not exceeding 5% of total assets[49][68]. - The Group had no significant contingent liabilities as of December 31, 2022, and June 30, 2022[187]. - There were no capital expenditures contracted for but not provided in the financial statements as of December 31, 2022, and June 30, 2022[187]. - The Group maintained a prudent treasury policy, financing operations primarily through internally generated resources and equity or debt financing[175]. - The Group's income and expenditure are mainly denominated in Hong Kong dollars, minimizing foreign exchange exposure[32].

Financial Performance - For the year ended June 30, 2022, the Group recorded revenue of approximately HK$90.05 million, representing an increase of approximately 107.96% compared to HK$43.30 million in 2021[13]. - The loss attributable to owners of the Company for the year amounted to approximately HK$32.89 million, compared to a profit of approximately HK$3.62 million in 2021[13]. - The loss was mainly due to a one-off equity settled share-based transaction of approximately HK$19.06 million and an impairment loss on trade and loan receivables totaling approximately HK$6.20 million[13]. - Revenue from secondary tutoring services segment was approximately HK$1.20 million, representing a decrease of approximately 32.96% compared to HK$1.79 million in 2021[17]. - Revenue from English language training and test preparation courses was approximately HK$77,000, up from approximately HK$63,000 in 2021[19]. - Revenue from directly-owned education centers was approximately HK$19.86 million, reflecting an increase of approximately 26.50% compared to HK$15.70 million in the last financial year[25]. - Revenue from franchised centers remained stable at approximately HK$3.91 million, compared to approximately HK$3.98 million in 2021[25]. - The UFO Group generated revenue of approximately HK$6.43 million from VR products and related services, an increase from approximately HK$0.79 million in the previous year[30]. - Revenue from primary tutoring services, skill courses, and test preparation courses increased to approximately HK$23.77 million, representing a growth of approximately 20.82% from approximately HK$19.67 million in the last financial year[74]. - Revenue from STEAM education services, VR, and digital entertainment amounted to approximately HK$54.04 million from trading gaming products, with additional revenues of approximately HK$6.43 million from VR products and approximately HK$477,000 from STEAM education services[79][85]. Challenges and Risks - The COVID-19 pandemic has significantly impacted the operations of the Group's teaching centers, leading to several suspensions of face-to-face classes[17]. - The management anticipates ongoing challenges due to the pandemic but remains focused on adapting to the changing educational landscape[18]. - The private tutoring industry is highly competitive, with a decrease in student numbers and an increase in small-scale centers intensifying market competition[165]. - Business interruption risk exists due to reliance on rented education centers, with potential adverse effects if leases are not renewed[164]. - The Group recognizes the importance of intellectual property rights protection, with potential litigation risks affecting financial position and brand image[166]. - The Group's business operations are significantly affected by the COVID-19 pandemic, leading to mandatory or voluntary suspensions of education centres if any infections are detected among students or staff[171]. Investments and Acquisitions - The Group completed the acquisition of 60% of UFO Interactive Group Limited, expanding into the Virtual Reality and digital entertainment business[11]. - The Group held significant investments under financial assets at FVOCI, with Gransing Financial Group Limited representing 6.22% of the Group's audited total assets as at 30 June 2022[65]. - The Group acquired listed securities in 22 companies and disposed of securities in 11 companies during the year[50]. - The acquisition of UFO Group is expected to provide complementary effects, particularly in diversifying the company's business and enhancing new learning approaches[108]. Financial Position - The Group's total gross loan and interest receivables amounted to approximately HK$29.95 million, down from HK$42.49 million in 2021[36]. - The largest borrower accounted for approximately HK$10.89 million or 36.36% of the Group's total loan and interest receivables as of June 30, 2022[36]. - The Group recognized expected credit loss allowances on loan and interest receivables amounting to approximately HK$4.46 million, a decrease from HK$12.50 million in 2021[38]. - The annual interest rate of loans granted ranged from 9% to 15%, compared to 10% to 10.5% in the previous year[36]. - The outstanding principal amount of loan receivables as of June 30, 2022, is approximately HK$26.86 million, compared to approximately HK$38.40 million in 2021[49]. - The Group's financial assets at fair value through profit or loss (FVPL) have a fair value of approximately HK$59.27 million, with a loss of approximately HK$6.18 million due to market conditions[50]. - The Group's impairment loss on loans and interest receivables is approximately HK$4,460,000 for the year[49]. Operational Strategies - The Group has been exploring market opportunities to better deploy its resources and connect students with celebrity tutors in a new digital era[18]. - The Group plans to leverage VR, augmented reality, and artificial intelligence technologies from the UFO Group to enhance educational services and expand into international markets[101]. - The Group aims to minimize losses from its joint venture in early education due to adverse conditions caused by COVID-19 and will collaborate closely with partners to develop appropriate strategies[75]. - The Group will continue to seek new quality tutors to reduce revenue concentration from existing tutors[158]. - The Group plans to renew leases in prime locations timely and maintain a portfolio of potential premises for relocation[164]. Employee and Operational Management - The company has recognized an additional impairment loss of approximately HK$4.46 million for loan receivables for the year ended June 30, 2022, compared to approximately HK$12.50 million in 2021[115]. - The Group is committed to providing competitive remuneration packages and career development opportunities to attract and motivate employees[187]. - The Group emphasizes the importance of employee relationships and offers competitive compensation to attract and retain talent[191]. - The Group maintains long-standing relationships with suppliers, primarily tutors, to ensure business sustainability and quality[195]. - The Group has complied with various employment laws to safeguard the health and interests of its employees, ensuring a supportive working environment[185]. Compliance and Sustainability - The Group has taken measures to ensure compliance with regulatory requirements, including ongoing reviews of newly enacted laws and establishing internal control procedures[180]. - The Group is committed to environmental sustainability, implementing green office practices such as double-sided printing and reducing energy consumption[173]. - The Group maintains a proactive approach to environmental practices, integrating health and safety management into its operational processes[178]. - The Group is focused on minimizing the risk of non-compliance with laws that could adversely impact its financial position and business operations[183]. Charitable Activities and Dividends - The Group's charitable donations during the Year amounted to HK$15,000, an increase from HK$3,000 in 2021[197]. - The Board does not recommend the payment of a final dividend for the Year, consistent with 2021 where no dividend was paid[197].

Financial Performance - The Group recorded revenue of approximately HK$42.07 million for the six months ended 31 December 2021, representing an increase of approximately 208.21% compared to approximately HK$13.65 million for the corresponding period in 2020[18]. - The Group reported a loss of approximately HK$4.76 million for the six months ended 31 December 2021, compared to a profit of approximately HK$3.72 million in 2020[18]. - The Group's overall performance was negatively impacted by the COVID-19 pandemic, prompting a focus on business strategies to attract more clients in 2022[68]. - The company reported a loss before tax of HK$4,760,000 for the period, compared to a profit of HK$3,706,000 in the same period of 2020[140]. - Total comprehensive expense for the period was HK$4,759,000, contrasting with a comprehensive income of HK$3,724,000 in the prior year[143]. - The company experienced a decline in other income, gains, and losses, netting HK$1,409,000 compared to HK$17,281,000 in the previous year[140]. - The Group reported a loss attributable to owners of the Company for the Period was approximately HK$4.58 million, compared to a profit of approximately HK$3.73 million in 2020, resulting in a loss per share of HK$0.01[98]. Revenue Breakdown - Revenue from secondary tutoring services segment was approximately HK$679,000, representing a substantial decrease of approximately 33.4% compared to the last financial period[34]. - Revenue from English language training and test preparation courses was approximately HK$32,000, down from approximately HK$63,000 in 2020[38]. - Revenue generated from directly-owned education centers was approximately HK$12.7 million, representing an increase of approximately 64.9% compared to approximately HK$7.7 million in the corresponding period in 2020[42]. - Revenue from franchised centers increased to approximately HK$2.5 million, up approximately 38.9% from approximately HK$1.8 million in 2020[42]. - The Group recorded revenue from the VR and digital entertainment segment of approximately HK$24.69 million, generated from UFO Group acquired on May 26, 2021[76]. - Revenue from primary tutoring services, skill courses, and test preparation courses increased to approximately HK$15.4 million, representing an increase of approximately 62.11% compared to approximately HK$9.50 million in the corresponding period in 2020[75]. Financial Ratios and Assets - As of 31 December 2021, the Group had a current ratio of 8.67 times, up from 6.27 times as of 30 June 2021[19]. - The gearing ratio was 10.02% as of 31 December 2021, down from 13.35% as of 30 June 2021[19]. - The Group's total balance of cash and cash equivalents as of 31 December 2021 was approximately HK$21.47 million, down from approximately HK$38.10 million as of 30 June 2021[106]. - The Group's financial assets at fair value through profit or loss (FVPL) had a fair value of approximately HK$44.1 million, with a gain of approximately HK$0.6 million during the period[52]. - The Group's investment cost in Gransing was HK$30,831,000, with a percentage to the Group's total assets of 10.05% as of December 31, 2021[61]. - The segment assets as of December 31, 2021, totaled HK$111,531,000, with the largest contribution from investment in securities at HK$44,088,000[177]. Operational Changes and Strategies - The Group offers both physical and online classes to meet different student needs during the COVID-19 pandemic[34]. - The Group is exploring market opportunities to better deploy its resources in the education sector[34]. - The Group plans to leverage digital technology to adapt to campus suspension and social distancing, enhancing e-learning capabilities[100]. - The demand for experiential learning has increased, driving the development of VR learning and STEAM-based programs[100]. - The Group is considering opportunities for mergers and acquisitions in the education sector to increase market share and revenue base[100]. - The Group is required to utilize the Grant for PSNFCs for school operation expenses, ensuring effective use amid the suspension of classes due to COVID-19[194]. Staff and Expenses - Staff costs increased by approximately HK$2.1 million or approximately 17.14% compared to the corresponding period in 2020, due to the development of VR, digital entertainment, and STEAM education business[83]. - Total staff costs for the six months ended December 31, 2021, amounted to HK$14,338,000, an increase from HK$12,240,000 in the same period of 2020, reflecting a growth of approximately 17.1%[200]. - Other daily operation related expenses rose to HK$2,710,000 for the six months ended December 31, 2021, up from HK$2,121,000 in 2020, representing a significant increase of approximately 27.8%[200]. - The Group's legal and professional fees for the six months ended December 31, 2021, were HK$971,000, compared to HK$870,000 in the previous year, marking an increase of around 11.6%[200]. Investments and Acquisitions - The Group completed the acquisition of 60% of UFO Interactive Group Limited on 26 May 2021, expanding into the Virtual Reality and digital entertainment business[32]. - The Group completed the acquisition of 60% of UFO Group, which specializes in VR technology and STEAM education, enhancing its business portfolio and income sources[44]. - The Group held investments in 8 Hong Kong listed companies, with none exceeding 5% of the Group's total assets as of December 31, 2021[56]. - The Group's investment portfolio included 7 companies listed on the Main Board and 8 on the GEM of the Stock Exchange, with a total of 36,578 shares held[55]. Cash Flow and Financing - For the six months ended December 31, 2021, the net cash used in operating activities was HK$11,880,000, compared to HK$23,971,000 for the same period in 2020, indicating an improvement[153]. - The net cash used in investing activities was HK$837,000, a significant decrease from the net cash generated of HK$22,821,000 in the previous year[153]. - The net cash used in financing activities was HK$3,917,000, compared to HK$14,038,000 generated in the same period of 2020, reflecting a shift in financing strategy[153]. - The Group's treasury policy is prudent, primarily financing operations through internally generated resources and equity or debt financing[116].

(國際)投資集團有限 Hong Kong Education (Int'I) Investments Ltd. (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) (於開曼群島註冊成立及於百慕達存續之有限公司) Stock Code 股份代號 : 1082 Contents 目錄 Contents 目錄 | --- | --- | |------------------------------------------------|--------------------------| | | | | CORPORATE INFORMATION | 公司資料 | | MANAGEMENT DISCUSSION AND ANALYSIS | 管理層討論及分析 | | PROFILES OF DIRECTORS AND SENIOR MANAGEMENT | 董事及高級管理層履歷 | | REPORT OF THE DIRECTORS | 董事會報告 | | CORPORATE GOVERNANCE ...

Financial Performance - The Group recorded revenue of approximately HK$13.65 million for the six months ended 31 December 2020, representing a decrease of approximately 70.63% compared to HK$46.49 million for the same period in 2019[11]. - The Group achieved a profit of approximately HK$3.72 million, a significant improvement from a loss of approximately HK$35.32 million in 2019[14]. - The profit before tax for the period was HK$3.71 million, compared to a loss of HK$35.34 million in the prior year[20]. - The total comprehensive income for the period was HK$3,724,000, compared to a loss of HK$35,330,000 in the same period last year, indicating a significant recovery[22]. - The profit attributable to owners of the company for the period was HK$3,732,000, a substantial improvement from a loss of HK$35,321,000 in the previous year[22]. - Basic and diluted earnings per share were both HK$0.01, recovering from a loss of HK$0.06 per share in the prior period[22]. - For the six months ended December 31, 2020, the company reported a profit of HK$3,732,000 compared to a loss of HK$35,321,000 for the same period in 2019[115]. Revenue Breakdown - For the six months ended December 31, 2020, the Group's total revenue was HK$13,651,000, with HK$11,316,000 from private educational services and HK$2,335,000 from money lending[61]. - The segment results for private educational services showed a loss of HK$1,817,000, while money lending generated a profit of HK$2,089,000, resulting in an overall loss before tax of HK$3,706,000[61]. - Revenue from secondary tutoring services dropped significantly to HK$1,017,000 from HK$20,063,000, reflecting a decline of 94.9%[92]. - Revenue from franchised centers decreased to approximately HK$1.79 million, representing a decline of approximately 44.80% compared to the previous year[182]. - Revenue from English language training and test preparation courses was approximately HK$63,000, down from approximately HK$1.63 million in 2019, reflecting a significant impact from COVID-19[179]. - Dance tuition services revenue fell to approximately HK$740,000, a decrease of approximately 91.95% compared to the same period in 2019[190]. Cost Management - Staff costs decreased to HK$12.24 million from HK$24.65 million in 2019, reflecting a reduction in operational expenses[20]. - The Group's lease payments significantly decreased to HK$341,000 from HK$7.85 million in 2019, indicating cost-cutting measures[20]. - The Group's depreciation and amortization expenses were reduced to HK$4.42 million from HK$16.15 million in the previous year[20]. - Total staff costs for the period were HK$12,240,000, a reduction of 50.3% from HK$24,646,000 in the previous year[105]. Assets and Liabilities - As of 31 December 2020, the Group had a current ratio of 7.77 times and a gearing ratio of 13.39%[12]. - Non-current assets decreased to HK$34,312,000 from HK$34,597,000, primarily due to a reduction in property, plant, and equipment[24]. - Current assets increased to HK$128,672,000 from HK$115,879,000, driven by a rise in bank balances and cash to HK$18,327,000[24]. - Current liabilities decreased to HK$16,560,000 from HK$38,716,000, reflecting improved cash flow management[24]. - Net current assets improved significantly to HK$112,112,000 from HK$77,163,000, indicating a stronger liquidity position[24]. - Total equity increased to HK$141,092,000 from HK$107,949,000, showing a healthy growth in shareholder value[26]. Cash Flow - For the six months ended December 31, 2020, the net cash used in operating activities was HK$ (23,971,000), compared to HK$ (19,769,000) for the same period in 2019, indicating a decline in cash flow from operations[34]. - The net cash generated from investing activities was HK$ 22,821,000, an increase from HK$ 20,390,000 in the previous year, reflecting improved investment performance[34]. - The net cash generated from financing activities was HK$ 14,038,000, a significant increase compared to HK$ (969,000) in the prior period, showing a positive shift in financing activities[34]. - The total cash and cash equivalents at the end of the period amounted to HK$ 18,327,000, up from HK$ 6,485,000 at the end of the previous year, indicating a strong liquidity position[34]. Segment Performance - The Group's operations are organized into three segments: private educational services, investment in securities, and money lending, with no aggregation of operating segments identified by the Chief Operating Decision Maker[57]. - The Group's investment in securities segment reported a loss of HK$2,006,000, indicating challenges in this area[61]. - The Group's money lending segment showed a positive performance with revenue of HK$2,335,000, highlighting its potential as a revenue stream[61]. - Segment assets totaled HK$126,599,000, with private educational services contributing HK$20,692,000, investment in securities HK$46,083,000, and money lending HK$59,824,000[77]. - Segment liabilities amounted to HK$20,235,000, with private educational services at HK$19,908,000 and investment in securities at HK$327,000[77]. Strategic Initiatives - The Group is collaborating with business operators to expand market penetration and improve learning quality through upgraded information technology solutions[173]. - The Group plans to continue allocating resources to online teaching and collaborate with various business operators to expand market penetration[191]. - The Group's cautious approach to business development is influenced by the ongoing COVID-19 pandemic, with strategies for resource allocation being formulated for 2021[183].

Financial Performance - The Group recorded revenue of approximately HK$46.49 million, representing a decrease of approximately 18.54% compared to approximately HK$57.07 million for the corresponding period in 2018[9]. - The Group recorded a loss of approximately HK$35.32 million, an improvement from a loss of approximately HK$45.21 million in 2018[9]. - Revenue from private educational services was HK$44.52 million, down from HK$54.91 million in the previous year[14]. - Interest income from money lending was HK$1.97 million, compared to HK$2.16 million in 2018[14]. - Loss before tax was HK$35.34 million, compared to HK$45.23 million in the previous year[14]. - The company reported a loss of HK$35,321,000 for the six months ended December 31, 2019, compared to a loss of HK$45,248,000 in the same period of 2018, indicating a 22.5% improvement in performance[16]. - Total comprehensive expense for the period attributable to owners of the company was HK$35,327,000, down from HK$45,310,000 year-over-year, reflecting a 22.1% decrease[16]. - Basic loss per share improved from HK$0.08 to HK$0.06, indicating a 25% reduction in loss per share[16]. - The total comprehensive expense for the period was HK$ (35,321,000), compared to HK$ (45,248,000) in the prior period[24]. - The company reported a total comprehensive income of HK$ (35,321,000) for the period, reflecting ongoing financial challenges[24]. Assets and Liabilities - As of December 31, 2019, the Group had a current ratio of 2.94 times and a gearing ratio of 27.78%[9]. - Non-current assets decreased from HK$70,502,000 as of June 30, 2019, to HK$96,641,000 as of December 31, 2019, showing a significant increase of 37.1%[18]. - Current liabilities decreased from HK$53,335,000 to HK$34,885,000, representing a 34.4% reduction[18]. - The company's net current assets decreased from HK$148,598,000 to HK$103,317,000, a decline of 30.5%[18]. - The company’s total equity decreased from HK$218,157,000 to HK$182,827,000, reflecting a 16.2% decline[20]. - The Group's right-of-use assets amounted to HK$34,764,000 as of December 31, 2019, after adjustments and depreciation[46]. - Lease liabilities were reported at HK$23,731,000 for current liabilities and HK$28,035,000 for non-current liabilities[43]. - The Group's segment revenue for private educational services was HK$44,516,000, while money lending generated HK$1,969,000, leading to a total consolidated revenue of HK$46,485,000 for the six months ended December 31, 2019[57]. Cash Flow - For the six months ended December 31, 2019, the net cash used in operating activities was HK$ (19,769,000), a decrease from HK$ (42,518,000) in the same period of 2018[26]. - The net cash generated from investing activities was HK$ 20,390,000, while net cash used in financing activities was HK$ (969,000)[26]. - Cash and cash equivalents at the end of the period amounted to HK$ 6,485,000, down from HK$ 14,390,000 at the end of the previous year[26]. - The cash flow from operating activities showed improvement, reducing the cash outflow compared to the previous period[26]. Dividends and Recommendations - The Board does not recommend the payment of an interim dividend for the six months ended December 31, 2019[10]. - The Board does not recommend the payment of an interim dividend for the six months ended 31 December 2019, consistent with 2018[99]. Segment Performance - The segment results showed a loss of HK$21,600,000 for private educational services and a loss of HK$9,679,000 for investment in securities, resulting in a total loss before tax of HK$35,340,000[57]. - The segment results showed a loss of HK$38,218,000, compared to a loss of HK$20,748,000 in the previous period, indicating a deterioration in performance[62]. - The Group's operations are organized into three segments: private educational services, investment in securities, and money lending, with "Others" combining segments that do not meet the quantitative thresholds[52]. Customer and Market Focus - The group’s assets, revenue, and results from activities outside Hong Kong were less than 10% of the total for the period, indicating a strong domestic focus[72]. - No individual customer accounted for over 10% of the group’s total revenue during both periods, reflecting a diversified customer base[72]. - The number of course enrolments for regular courses decreased from approximately 41,000 in 2018 to 25,000 in 2019, while intensive courses saw a decline from 1,000 to 900[168]. Financial Assets and Investments - The Group's financial assets at fair value through profit or loss (FVPL) amounted to approximately HK$51,750,000[185]. - The Group experienced a fair value loss of approximately HK$9,400,000 on financial assets at FVPL during the period due to stock market volatility[185]. - Significant investments included Convoy Global Holdings Limited, which accounted for approximately 2.34% of the Group's total assets as of December 31, 2019[188]. - The Group's investment in Gransing Financial Group Limited represented approximately 6.09% of the Group's total assets as of December 31, 2019[195]. Regulatory and Compliance - 康宏股份自2017年12月7日起暂停交易，至今仍未恢复[200]. - 根据上市规则，若康宏股份连续18个月停牌，可能会被取消上市地位，期限至2020年1月31日[200]. - 康宏已向联交所申请延长补救期，以满足复牌条件[200]. - 康宏采取进一步措施以达成复牌条件，并与联交所进行沟通[200].

Financial Performance - For the year ended June 30, 2019, the Group recorded revenue of approximately HK$108.94 million, a slight decrease of approximately 0.08% compared to HK$109.03 million in 2018[26]. - Loss attributable to owners of the Company for the year amounted to approximately HK$77.44 million, significantly higher than the loss of approximately HK$8.25 million in 2018, primarily due to a loss from the change in fair value of financial assets[26]. - The Group's other income, gains, and losses recorded a net gain of approximately HK$0.41 million, a significant decrease from approximately HK$55.89 million last year[104]. - The Group recorded a loss of approximately HK$19.83 million due to changes in the fair value of financial assets at FVPL during the year[65]. - The Group's gearing ratio increased to 14.03% as of June 30, 2019, compared to 8.74% in the previous year[134]. Revenue Breakdown - The secondary tutoring services segment generated revenue of approximately HK$53.88 million, representing a decrease of approximately 24.79% compared to the previous year[34]. - Revenue from secondary tutoring services dropped to approximately HK$53.88 million, a decrease of approximately 24.79% from HK$71.64 million last year[101]. - Revenue from English language training and test preparation courses decreased to approximately HK$9.23 million, down approximately 17.91% from HK$11.24 million last year[101]. - Revenue from primary tutoring services, skill courses, and test preparation courses increased to approximately HK$24.26 million, representing an increase of approximately 23.32% compared to HK$19.67 million last year[102]. - Revenue from dance tuition services reached approximately HK$17.57 million, a significant increase from approximately HK$2.44 million recorded in the previous year[50]. Student Enrolment Trends - The number of course enrolments for regular courses decreased from 95,000 in 2018 to 65,000 in 2019, while intensive courses increased from 10,000 to 12,000[37]. - The Group's English language training and test preparation courses generated revenue of approximately HK$9.23 million, down approximately 17.91% from HK$11.24 million in the previous year, with course enrolments decreasing from approximately 6,700 to 5,500[45]. - Primary tutoring services saw an increase in course enrolments from approximately 14,400 in 2018 to 17,000 in 2019, contributing to a revenue increase from approximately HK$4.51 million to HK$5.70 million, representing a growth of approximately 26.50%[47]. Competitive Environment - The Group faced a highly competitive operating environment, with a decline in the number of students attending the HKDSE, leading to the lowest recorded applications since its inception in 2012[24]. - The Group aims to maintain experienced teaching teams and improve overall teaching quality to navigate the tough business environment expected in the educational services industry[32]. - The Group is adopting new marketing strategies to enhance its brand image and attract more students, thereby increasing overall market competitiveness[34]. - The Group aims to enhance its brand image and attract more students through new marketing strategies in response to the competitive market environment[35]. - The Group operates in a highly competitive environment, with a decrease in student numbers and an increase in small tutoring centers affecting market share[193]. Investment and Financial Assets - As of June 30, 2019, the fair value of financial assets at FVPL was approximately HK$65,980,000, representing 25.98% of the Group's audited total assets[62]. - The Group actively allocated more resources to securities investment, acquiring listed securities from 17 companies and disposing of 12 during the year[52]. - The Group's total investment cost for financial assets at FVPL was HK$166,839,000 as of June 30, 2019[62]. - The economic instability and external factors have weakened the stock market in Hong Kong, impacting the Group's investment performance[65]. - The Group's diversification strategy in securities investment aims to mitigate risks associated with market volatility[52]. Operational Strategies - The Group is exploring potential cooperative business relationships to capture emerging growth opportunities and sustain solid business operations[32]. - The Group will allocate internal resources to diversify and expand sales channels for English language training and test preparation courses[45]. - The Group plans to explore new potential franchisees to capture greater market share in the primary tutoring segment[47]. - The management team will seek potential education-related business partners for collaboration to diversify within the education sector and generate greater income[125]. - The Group aims to enhance its competitive advantage by maintaining a high-quality teaching team and a strong brand image[193]. Staffing and Costs - Staff costs increased by approximately HK$10.15 million or approximately 24.66% compared to the last financial year, mainly due to the inclusion of staff salaries for dance tuition services[110]. - Tutor contractor fees decreased by approximately HK$5.37 million or approximately 19.38% compared to the last financial year, in line with the decline in revenue from secondary tutoring services[111]. - Operating lease payments increased by approximately HK$8.38 million or approximately 24.92% compared to the previous year, primarily due to the inclusion of rental payments for dance tuition services[115]. - Marketing expenses decreased by approximately HK$6.44 million or approximately 55.02% compared to the last financial year, mainly due to reduced media placement and marketing activities[116]. - The Group's other operating expenses decreased by approximately HK$4.37 million or about 11.29% compared to the previous year, mainly due to reduced legal and professional fees and the absence of a write-off of receivables recorded in the previous fiscal year[120]. Risks and Challenges - The Group faces sourcing risk as it relies on tutors for quality tutoring services, which may impact business if contracts are not renewed[188]. - Business interruption risk is significant as the Group rents education centers, and failure to renew leases could adversely affect operations[192]. - Intellectual property rights protection is crucial, with potential litigation risks impacting financial position and brand image if laws are violated[194]. - Financial risk management objectives and policies are outlined in Note 6 of the consolidated financial statements[195]. - The Group will continue to seek new quality tutors to reduce revenue concentration from existing high-fee tutors[188].

Financial Performance - The Group recorded revenue of approximately HK$57.07 million, representing an increase of approximately 7.53% compared to approximately HK$53.07 million for the corresponding period in 2017[10]. - The Group reported a loss of approximately HK$45.21 million, a significant decline from a profit of approximately HK$5.59 million in 2017, primarily due to a loss of approximately HK$18.73 million from changes in fair value of financial assets[11]. - The loss before tax was approximately HK$45.23 million, contrasting with a profit of approximately HK$4.22 million in the same period of 2017[19]. - For the six months ended December 31, 2018, the company reported a loss attributable to owners of the company of HK$45,248, compared to a profit of HK$5,527 for the same period in 2017[21]. - Total comprehensive expense income for the period attributable to owners of the company was HK$45,310, a significant decrease from HK$14,255 in the prior year[21]. - Basic and diluted loss per share for the period was HK$0.08, compared to earnings of HK$0.01 per share in the same period last year[21]. - The company reported a net decrease in cash and cash equivalents of HK$28,257,000 for the six months ended December 31, 2018[33]. - The total comprehensive income for the period was HK$14,320,000, which includes a profit of HK$5,582,000[29]. Assets and Liabilities - The company's non-current assets decreased from HK$91,138 as of June 30, 2018, to HK$76,821 as of December 31, 2018, reflecting a decline of approximately 15.7%[23]. - Current assets also decreased from HK$224,924 to HK$192,164, representing a decline of about 14.5%[23]. - The company's net current assets decreased from HK$198,554 to HK$167,436, a reduction of approximately 15.7%[23]. - The total equity attributable to owners of the company decreased from HK$288,766 as of June 30, 2018, to HK$243,456 as of December 31, 2018, indicating a decline of about 15.7%[25]. - The company's cash and bank balances decreased from HK$42,709 to HK$14,390, a decline of approximately 66.3%[23]. - The company's trade and other receivables decreased from HK$27,197 to HK$21,263, a reduction of about 21.9%[23]. - The total segment assets as of December 31, 2018, were HK$186,350,000, with unallocated assets including bank balances and cash of HK$14,029,000[68]. Revenue Segmentation - The Group's operations are organized into four segments: private educational services, investment in securities, property investments, and money lending[56]. - Segment revenue for the six months ended December 31, 2018, was HK$57,068,000, with a loss before tax of HK$45,233,000[60]. - The segment results showed a loss of HK$38,218,000, with the private educational services segment generating revenue of HK$54,911,000[60]. - Secondary tutoring services generated revenue of HK$28,493,000, down 19.8% from HK$35,586,000 in the previous year[84]. - Primary tutoring services and skill courses revenue increased by 25% to HK$9,489,000 from HK$7,599,000[84]. - Revenue from English language training and test preparation courses was approximately HK$5.90 million, a slight increase of 2.75% compared to HK$5.74 million in the previous year[189]. - Revenue from franchised centres increased by approximately 24.26% to HK$2.62 million, up from HK$2.11 million in the same period last year[190]. Expenses and Costs - Staff costs increased to approximately HK$25.31 million from HK$20.12 million in the previous period, reflecting a rise in operational expenses[19]. - Operating lease payments rose to approximately HK$21.39 million compared to HK$15.54 million in the previous period, indicating increased rental expenses[19]. - Directors' emoluments decreased to HK$716,000 from HK$2,134,000, reflecting a significant reduction of 66.5%[90]. - Other staff costs increased to HK$23,463,000, up 35.3% from HK$17,358,000 in the previous year[90]. - The financial costs incurred during the period were HK$3,205,000, impacting overall profitability[64]. Financial Instruments and Valuation - The Group adopted HKFRS 9 Financial Instruments, which introduces new requirements for the classification and measurement of financial assets and liabilities, including expected credit loss (ECL) models[46]. - The Group recognizes a loss allowance for ECL on financial assets subject to impairment under HKFRS 9, including trade and other receivables, promissory notes, and loan receivables[49]. - The measurement of expected credit loss (ECL) is based on the probability of default and loss given default, adjusted by forward-looking information[51]. - The Group's financial assets at fair value through profit or loss totaled HK$38,058,000, with unlisted equity interests contributing HK$16,114,000[147]. - The fair value of listed equity securities in Hong Kong increased to HK$33,700,000 as of December 31, 2018, from HK$27,071,000 as of June 30, 2018, representing a growth of approximately 24%[123]. - The fair value of suspended listed equity securities decreased to HK$30,200,000 as of December 31, 2018, down from HK$38,100,000 as of June 30, 2018, reflecting a decline of about 21%[123]. Market Conditions and Strategy - The Group faced severe market competition and pressure in the educational services industry, making it difficult to retain quality tutors and professionals[177]. - The Group adopted a prudent approach to sustain its business development and maintained its market position as one of the leading private tuition providers in Hong Kong[178]. - The Group is actively seeking talented franchisees to join and expand its market presence[190]. - The Group plans to expand its English education services targeting both students and the professional workforce in Hong Kong[189]. - The Group's strategy included upgrading service quality to enhance student retention rates amid declining enrolments[180]. Miscellaneous - The Group did not recommend the payment of an interim dividend for the six months ended December 31, 2018, consistent with the previous year[15]. - The company recorded a write-off of HK$950,000 for promissory note receivable during the period[90]. - The number of course enrolments decreased to 41,000 for regular courses, down 18% from 50,000 in 2017[1]. - The number of students attending the Diploma of Secondary Education Examination (DSE) continued to decline, impacting the Group's secondary tutoring service business segment[177].