Financial Performance - The group's revenue for the six months ended June 30, 2019, was approximately HKD 53,000,000, compared to HKD 28,900,000 for the same period in 2018, representing an increase of 83.5%[1] - The loss attributable to owners of the company for the six months ended June 30, 2019, was approximately HKD 14,500,000, compared to HKD 8,300,000 for the same period in 2018, indicating a year-over-year increase in loss of 74.7%[1] - The basic loss per share for the six months ended June 30, 2019, was approximately HKD 4.10, compared to HKD 2.34 for the same period in 2018, reflecting an increase of 75.3%[1] - The company reported a loss of HKD (14,503,000) for the six months ended June 30, 2019, compared to a loss of HKD (8,288,000) in the same period of 2018, indicating a worsening financial performance[7] - The group reported a total loss before tax of HKD 16,943,000 for the six months ended June 30, 2019[34] - The net loss attributable to the company's owners increased to approximately HKD 14,500,000 from HKD 8,300,000 in the previous year, with total net loss rising from HKD 9,700,000 to HKD 16,900,000[73] Assets and Liabilities - Total assets as of June 30, 2019, amounted to HKD 336,899,000, compared to HKD 121,181,000 as of December 31, 2018, showing a significant increase of 177.5%[4] - The total liabilities as of June 30, 2019, were HKD 348,636,000, compared to HKD 113,809,000 as of December 31, 2018, reflecting an increase of 206.5%[5] - The group's non-current assets increased to HKD 175,949,000 as of June 30, 2019, from HKD 105,667,000 as of December 31, 2018, representing a growth of 66.3%[4] - The total equity attributable to owners decreased to HKD (47,376,000) as of June 30, 2019, from HKD 13,863,000 at the beginning of the year, highlighting a significant decline in shareholder equity[7] Cash Flow - The group's cash and cash equivalents as of June 30, 2019, were HKD 186,184,000, compared to HKD 54,966,000 as of December 31, 2018, indicating an increase of 238.5%[4] - For the six months ended June 30, 2019, the net cash used in operating activities was HKD (17,748,000), compared to HKD (9,716,000) for the same period in 2018, indicating a significant increase in cash outflow[8] - The net cash used in investing activities was HKD (41,007,000) for the first half of 2019, a decrease from HKD 2,980,000 in the previous year, reflecting a substantial shift towards cash outflows in investments[8] - The net cash generated from financing activities was HKD 190,213,000 in 2019, a notable increase from HKD 240,000 in 2018, suggesting a strong reliance on financing to support operations[8] - The total cash and cash equivalents increased by HKD 131,458,000 in the first half of 2019, compared to a decrease of HKD (6,496,000) in the same period of 2018, indicating improved liquidity[8] Income and Expenses - The group recognized other income of HKD 10,296,000 for the six months ended June 30, 2019, compared to HKD 7,030,000 for the same period in 2018, marking an increase of 46.3%[2] - The group reported a financing cost of HKD 4,541,000 for the six months ended June 30, 2019, compared to HKD 1,653,000 for the same period in 2018, indicating an increase of 174.5%[2] - The group’s total expenses, including corporate expenses, were HKD 17,992,000 for the reporting period[34] - Other operating expenses increased significantly by approximately 52.1% to about HKD 18,400,000, primarily due to professional fees, commissions, and travel expenses related to business acquisitions[73] Business Operations - The company operates in various sectors, including dance education and early childhood education, which may provide opportunities for market expansion and diversification[10] - The dance academy business generated revenue of HKD 29,297,000, while the early childhood education business contributed HKD 14,623,000[34] - The company has implemented strategies to improve operations by collaborating with Chatsworth to launch kindergarten services in Hong Kong[69] - The company plans to accelerate its expansion in the overseas early childhood education market and is considering potential acquisition opportunities[69] Acquisitions and Investments - The company has made a deposit of AUD 200,000 (approximately HKD 1,126,000) for a potential acquisition, indicating ongoing strategic expansion efforts[49] - The company paid a refundable deposit of SGD 130,000 (approximately HKD 751,000) for the proposed acquisition of all assets of a target company in Singapore as of June 30, 2019[50] - A non-refundable deposit of SGD 750,000 (approximately HKD 4,332,000) was paid for the proposed acquisition of 60% equity in Sunflower Childcare Group Pte. Ltd. as of June 30, 2019[50] - The potential acquisition aligns with the group's business development and expansion plans, providing an excellent platform to expand its early childhood education business internationally[87] Shareholder Information - The company's total issued share capital as of June 30, 2019, was HKD 35,410,000, divided into 354,100,000 shares with a par value of HKD 0.1 each[93] - Major shareholders include Wealthy Together, holding 198,750,000 shares, representing 56.13% of the issued share capital[92] - The proposed update to the share option plan was approved by shareholders, allowing for a maximum of 35,410,000 shares to be issued upon exercise of options, representing 10% of the issued shares[97] Governance and Compliance - The company has adhered to all provisions of the corporate governance code as per GEM listing rules during the six months ending June 30, 2019[101] - The audit committee, composed of independent non-executive directors, reviewed the group's accounting principles and financial reporting matters without any objections[104] - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[106]

Financial Performance - The group's revenue for the three months ended March 31, 2019, was approximately HKD 25,900,000, compared to HKD 14,900,000 for the same period in 2018, representing a year-over-year increase of 73.5%[3] - The loss attributable to owners of the company for the three months ended March 31, 2019, was approximately HKD 9,600,000, compared to HKD 1,600,000 for the same period in 2018, indicating a significant increase in losses[3] - The basic loss per share for the three months ended March 31, 2019, was approximately HKD 2.71, compared to HKD 0.44 for the same period in 2018, reflecting a substantial decline in earnings[5] - The total comprehensive loss for the period was HKD 10,900,000, compared to HKD 2,094,000 for the same period in 2018, showing a worsening financial position[5] - The group reported a pre-tax loss of HKD 10,945,000 for the three months ended March 31, 2019, compared to HKD 2,094,000 for the same period in 2018, indicating a significant decline in profitability[4] - The group incurred a loss of HKD 10,889,000 for the three months ended March 31, 2019, compared to a loss of HKD 9,678,000 in the same period of 2018, indicating a decline of 12.5%[16] Operating Expenses - The group's operating expenses included employee costs of HKD 17,305,000, which increased from HKD 8,005,000 in the previous year, highlighting a rise in operational expenditures[4] - The group's financing costs for the period were HKD 2,107,000, up from HKD 826,000 in the previous year, indicating increased financial burdens[4] - Other operating expenses increased by approximately 97.8% to about HKD 8,900,000 from HKD 4,500,000 in the previous year[34] - Financing costs for the three months ended March 31, 2019, totaled HKD 2,107,000, up from HKD 826,000 in the previous year, reflecting a significant increase of 154.5%[25] Revenue Sources - The dance academy business generated revenue of HKD 15,174,000 for the three months ended March 31, 2019, compared to HKD 14,864,000 in the previous year, showing a slight increase of 2.1%[20] - The early childhood education business contributed HKD 7,080,000 in revenue for the first time, as it was not present in the previous year[20] - The contribution from early childhood education business was approximately HKD 7,100,000, while speech therapy and children's photography services contributed approximately HKD 2,400,000 and HKD 1,200,000 respectively[32] Corporate Governance - The company has complied with all corporate governance codes as per GEM Listing Rules during the reporting period[55] - The audit committee, composed of independent non-executive directors, reviewed the unaudited consolidated results for the three months ending March 31, 2019[58] - The board of directors includes executive directors Mr. Zhao Jiale (Chairman) and Mr. Qin Zhiang (CEO), along with non-executive and independent directors[60] - The company has not identified any conflicts of interest among its directors or major shareholders during the reporting period[52] Shareholder Information - Mr. Zhao and Dr. Qin each hold 198,750,000 shares, representing 56.13% of the total issued share capital of HKD 35,410,000[44] - Wealthy Together, owned by Mr. Zhao, is the beneficial owner of 198,750,000 shares, accounting for 56.13% of the issued share capital[45] - Mr. Xu Peixiang holds 60,246,000 shares, which is 17.01% of the total issued share capital[45] - Both Chen Jiaxin and Tycoon Mind Limited each hold 28,000,000 shares, representing 7.91% of the total issued share capital[45] - The company's share option plan allows for a maximum of 20,000,000 shares to be issued, which is capped at 10% of the total issued shares as of the adoption date[49] - As of March 31, 2019, no share options have been granted or agreed to be granted under the share option plan[49] Future Plans - The company plans to accelerate its expansion into overseas markets to diversify and broaden its revenue sources[31] - The board is actively seeking suitable investment opportunities to expand its business scope and diversify its existing operations[39] Financial Reporting Standards - The group adopted Hong Kong Financial Reporting Standard 16 starting from January 1, 2019, using the modified retrospective approach[13] - The group has not yet applied new Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and the impact on operational performance remains uncertain[17] Miscellaneous - The report date is May 15, 2019, indicating the timing of the financial disclosures[61] - The document pertains to the first quarter report for the fiscal year 2019-2020, highlighting the company's performance during this period[61] - The company did not declare or propose any dividends for the three months ended March 31, 2019, consistent with the previous year[29] - There were no purchases, sales, or redemptions of the company's listed securities during the reporting period[57] - The group operates in Hong Kong and Singapore, with revenue from external customers reported based on the location of operations[21] - No individual customer accounted for more than 10% of the total revenue during the reporting periods[24] - As of March 31, 2019, the company's total equity was approximately HKD 26,489,000, down from HKD 28,005,000 a year earlier[30] - The company recorded other income of approximately HKD 2,600,000, up from HKD 2,300,000 in the previous year[34] - Other income for the three months ended March 31, 2019, was HKD 2,644,000, compared to HKD 2,292,000 in the previous year, showing a slight increase[4] - The group experienced a foreign exchange loss of HKD 11,000 due to overseas business translation, which was not present in the previous year[5]

Expansion and Growth Strategies - The company expanded its operations by opening 23 dance centers and one kindergarten in Hong Kong during 2018[11]. - The company acquired several companies in Singapore's preschool sector, operating four preschools by the end of 2018[11]. - The company aims to enhance its market position by opening or acquiring more dance centers in densely populated residential areas near schools[13]. - Future strategies include acquiring daycare centers, kindergartens, and indoor children's theme clubs to improve operational efficiency[15]. - The company plans to accelerate its expansion in Singapore and other overseas markets to diversify revenue sources[15]. - The company continues to seek new business opportunities to enhance long-term growth potential and shareholder value[13]. - The group aims to consolidate its position in the Hong Kong and China dance school industry while exploring further expansion opportunities in the dance school sector[29]. - The group has identified potential acquisition opportunities in the mainstream education market in Singapore, aligning with its business development and expansion plans[29]. Financial Performance - The group recorded a revenue of approximately HKD 76,500,000 for the year ended December 31, 2018, representing a 19% increase from HKD 64,300,000 in the previous year[20]. - The group incurred a loss attributable to owners of approximately HKD 53,500,000 for the year ended December 31, 2018, compared to a loss of HKD 25,700,000 in the previous year, primarily due to one-time non-operating expenses[22]. - The group’s other income increased by approximately 22% to HKD 12,700,000 for the year ended December 31, 2018, up from HKD 10,400,000 in the previous year[20]. - The group’s bank balance and cash totalled approximately HKD 55,000,000 as of December 31, 2018, down from HKD 133,800,000 in the previous year[23]. - The group had bank borrowings of HKD 3,000,000 as of December 31, 2018, compared to no bank borrowings in the previous year[23]. - The group’s operating lease commitments amounted to approximately HKD 74,400,000 as of December 31, 2018, compared to HKD 50,500,000 in the previous year[25]. - The group had no distributable reserves as of December 31, 2018, compared to HKD 22,900,000 in 2017[170]. Corporate Governance - The board consists of seven members, including two executive directors and three independent non-executive directors[43]. - The company has adopted a board diversity policy to enhance performance quality by considering various measurable aspects such as gender, age, and professional experience[50]. - The board has committed to high standards of corporate governance, aligning with stakeholder interests and regulatory requirements[40]. - The company has established three board committees: the audit committee, remuneration committee, and nomination committee, each with defined terms of reference[63]. - The company has ensured compliance with legal and regulatory requirements through its corporate governance policies[63]. - The board has reviewed the effectiveness of the risk management and internal control systems, concluding that they are effective and sufficient[77]. - The company encourages all directors to participate in continuous professional development seminars and courses to update their skills and knowledge[74]. - The company has received annual confirmations regarding the independence of its independent non-executive directors[72]. Environmental Performance - The company reported a significant increase in nitrogen oxides emissions, rising to 12,863 grams in 2018 from 1,354 grams in 2017, representing an increase of 850%[98]. - Sulfur oxides emissions also saw a substantial rise, increasing from 3 grams in 2017 to 21 grams in 2018, which is a 600% increase[98]. - The total greenhouse gas emissions for the company reached 280,991 kilograms in 2018, up from 252,959 kilograms in 2017, marking an 11% increase[100]. - The company operated 31 facilities in 2018, an increase from 22 facilities in 2017, contributing to the rise in emissions[101]. - The annual emission intensity decreased to 9,064 kilograms of CO2 equivalent per facility in 2018 from 11,498 kilograms in 2017, indicating improved energy control measures[101]. - The company has committed to enhancing its environmental performance and sustainability reporting in the future[91]. Employee and Social Responsibility - Employee costs for the year ended December 31, 2018, were approximately HKD 38,000,000, an increase from approximately HKD 26,200,000 in 2017[36]. - Employee count rose to 268 in 2018 from 211 in 2017, reflecting a growth of 27%[112]. - The employee turnover rate for females was 26% in 2018, compared to 17% in 2017[117]. - The company provided various training courses, including team building and sales skills, to enhance employee development[120]. - The company actively encourages employee participation in community service and environmental activities[129]. - The company successfully organized a dance marathon with over 1,000 student participants, setting a Guinness World Record[129]. Compliance and Risk Management - The company has strict internal control processes for procurement, ensuring suppliers meet quality and service standards[123]. - The company emphasizes customer privacy and complies with the Personal Data (Privacy) Ordinance, ensuring student data confidentiality[125]. - No incidents of non-compliance with data privacy regulations were reported this year[126]. - The company has implemented a whistleblowing policy to prevent unethical behavior and ensure compliance with laws[127]. - No incidents of non-compliance with anti-corruption or money laundering laws were reported this year[128]. Shareholder Information - The board will continue to review the group's financial position and capital requirements annually to determine future dividend recommendations[155]. - The group did not recommend a final dividend for the year ended December 31, 2018, consistent with the previous year[154]. - The company has established multiple communication channels with shareholders and investors, including annual meetings and a dedicated website[88].