Fundraising and Share Issuance - The company raised a net amount of $5,850,000 (equivalent to HKD 45,630,000) through the issuance of Australian convertible bonds[3] - A total of 19,500,000 new shares were issued, raising a net amount of HKD 7,680,000, which was used to cover operational expenses in Hong Kong, including salaries and rent of approximately HKD 6,000,000 and HKD 1,680,000 respectively[3] Share Options - As of December 31, 2021, the total number of options available for issuance under the share option scheme was 41,110,000 shares, representing about 8.98% of the company's issued shares[6] - The company granted 3,846,000 share options to a supplier for IT services, aimed at upgrading the existing POS system and providing maintenance support[6] - Two business partners in mainland China were each granted 3,846,000 share options as a reward for expanding the company's education business in that region[6]

Financial Performance - The group's revenue for the six months ended June 30, 2022, was approximately HKD 69,200,000, a decrease of 24.5% compared to HKD 91,600,000 in the same period last year[3]. - The loss attributable to shareholders for the six months was approximately HKD 15,500,000, compared to a profit of HKD 86,000,000 in the previous year[3]. - Basic loss per share for the period was approximately HKD 3.40, compared to basic earnings of HKD 22.35 per share in the same period last year[6]. - Total comprehensive loss for the period amounted to HKD 7,728,000, a significant decline from a total comprehensive income of HKD 88,491,000 in the previous year[6]. - The total loss before tax for the group was HKD 14,073,000 for the six months ended June 30, 2022[26]. - The company reported a total comprehensive loss of HKD 7,804,000 for the six months ended June 30, 2022, compared to a total comprehensive income of HKD 88,033,000 for the same period in 2021[10]. - The group recorded a loss attributable to owners of approximately HKD 14,100,000, compared to a profit of about HKD 86,000,000 in the same period last year[69]. Assets and Liabilities - Non-current assets as of June 30, 2022, totaled HKD 274,006,000, down from HKD 293,301,000 as of December 31, 2021[7]. - Current assets were HKD 92,861,000, slightly decreased from HKD 93,142,000 at the end of the previous year[7]. - The group's total liabilities amounted to HKD 506,328,000, compared to HKD 505,991,000 in the previous year[7]. - As of June 30, 2022, the total equity attributable to owners of the company was HKD (234,398,000), compared to HKD (226,814,000) at the end of 2021[10]. - The company’s non-current liabilities increased from HKD 86,237,000 as of June 30, 2021, to HKD 98,642,000 as of December 31, 2022[8]. - The company’s total liabilities increased from HKD 225,698,000 as of June 30, 2021, to HKD 218,190,000 as of December 31, 2022[8]. Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was HKD 17,638,000, a decrease of 62.7% compared to HKD 47,251,000 for the same period in 2021[12]. - The net cash used in investing activities was HKD 1,208,000, significantly improved from HKD 18,505,000 in the previous year[12]. - The net cash used in financing activities was HKD 12,324,000, a decrease of 73.7% compared to HKD 46,882,000 in the prior year[12]. - The cash and cash equivalents decreased by HKD 4,106,000, compared to a decrease of HKD 18,136,000 in the previous year[12]. - As of June 30, 2022, the group had cash and bank balances totaling approximately HKD 24,200,000, down from HKD 29,500,000 as of December 31, 2021[78]. - The group had bank and other borrowings of HKD 34,800,000 as of June 30, 2022, compared to HKD 49,300,000 as of December 31, 2021[78]. Revenue Breakdown - The total revenue for the six months ended June 30, 2022, was HKD 69,214,000, a decrease of 24.5% compared to HKD 91,640,000 for the same period in 2021[26]. - The dance academy business generated revenue of HKD 17,000,000, down 50.8% from HKD 34,599,000 in the previous year[26]. - The early childhood education business reported revenue of HKD 48,096,000, an increase of 5.5% from HKD 45,670,000 in the prior year[26]. - Revenue from the dance academy business in Hong Kong fell from about HKD 34,600,000 to approximately HKD 17,000,000, a decrease of about HKD 17,600,000 or 51%[67]. Other Income and Expenses - The group reported a significant increase in other income to HKD 22,201,000 for the six months, up from HKD 17,975,000 in the previous year[4]. - The group reported a total of HKD 4,231,000 in other income, other gains, and losses for the six months ended June 30, 2022[26]. - Employee and teaching consultancy service costs decreased by about 15% to approximately HKD 51,400,000 from HKD 60,800,000[67]. - Rental income from related parties for the six months ended June 30, 2022, was HKD 701,000, down from HKD 1,446,000 in the previous year[59]. Corporate Governance and Compliance - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2022, and found no objections to the accounting treatment adopted by the company[111]. - The company has adhered to all corporate governance codes as per GEM listing rules without any deviations during the reporting period[107]. - There were no conflicts of interest reported among directors or major shareholders during the reporting period[105]. - The company received written confirmations from major shareholders regarding compliance with non-competition agreements as of December 31, 2021[106]. Business Operations and Strategy - The company operates in the fields of dance education and early childhood education, with significant operations in Hong Kong and Singapore[14]. - The company has accelerated its expansion in the education markets of Singapore and Australia in recent years[62]. - The group is optimistic about the Australian education market and plans to explore opportunities for future business expansion once travel restrictions are lifted[66]. - The board is actively seeking investment opportunities to expand its dance school business in Asia and other international markets[89]. - The company is exploring suitable opportunities for business expansion in Hong Kong, mainland China, and overseas markets[90]. Share Capital and Securities - As of June 30, 2022, the company's issued share capital was HKD 45,760,000, divided into 457,600,000 shares with a par value of HKD 0.1 each[94]. - The company issued convertible bonds with a principal amount of USD 25,000,000 (approximately HKD 195,400,000) at an annual interest rate of 8%, maturing in 2023[54]. - The company had outstanding convertible bonds with a face value of approximately HKD 275,400,000 as of June 30, 2022, down from HKD 281,800,000 in the previous year[82]. - The company has a stock option plan that allows for the issuance of up to 10% of the total issued shares post-IPO, which amounts to a maximum of 20,000,000 shares[98]. - The stock option plan was updated to allow for the issuance of up to 35,410,000 shares, representing 10% of the issued shares as of the date of the shareholder approval[99].

Financial Health - As of December 31, 2021, the group recorded current liabilities net value of approximately HKD 412,849,000 and net liabilities of HKD 218,190,000, raising significant doubts about the group's ability to continue as a going concern[5] COVID-19 Impact - The company successfully managed the impact of the COVID-19 outbreak, generating sufficient cash flow from operations, and anticipates improved profitability due to the easing of lockdown policies and border restrictions in Hong Kong[8] Financing Strategies - The company is in discussions with noteholders regarding potential repayment of convertible notes, and will continue to seek alternative financing and borrowing as additional sources of funds[8]

Financial Performance - The group's revenue for the three months ended March 31, 2022, was approximately HKD 20,500,000, a decrease of 46.5% compared to HKD 38,400,000 for the same period last year[3]. - The profit attributable to shareholders for the same period was approximately HKD 13,100,000, down 67.6% from HKD 40,400,000 in the previous year[3]. - Basic earnings per share for the three months ended March 31, 2022, were approximately HKD 2.87, compared to HKD 10.50 for the same period last year[3]. - The group reported a loss before tax of approximately HKD 13,463,000, compared to a profit before tax of HKD 39,965,000 in the previous year[4]. - Total comprehensive loss for the period was approximately HKD 14,204,000, compared to a total comprehensive income of HKD 41,648,000 in the previous year[5]. - The group reported a loss attributable to shareholders of approximately HKD 13,132,000 for the three months ended March 31, 2022, compared to a profit of HKD 40,373,000 for the same period in 2021[29]. - The group recorded a loss attributable to owners of approximately HKD 13,100,000, compared to a profit of about HKD 40,400,000 in the same period last year, marking a significant decline[39]. Revenue Breakdown - Revenue from the Dance Academy business was HKD 2,606,000, down 78.3% from HKD 11,992,000 in the previous year[16]. - Revenue from the Early Childhood Education business was HKD 15,452,000, a decline of 21.6% from HKD 19,733,000 in the prior year[16]. - Revenue from Hong Kong was HKD 6,009,000, down 59.0% from HKD 14,633,000 in the previous year, while revenue from Singapore was HKD 14,492,000, a decrease of 23.3% from HKD 18,883,000[19]. - Total revenue decreased from approximately HKD 38,400,000 to about HKD 20,500,000, a reduction of approximately 46.5% due to decreased income from the dance academy business[38]. Costs and Expenses - The group incurred financing costs of approximately HKD 3,088,000, an increase from HKD 2,699,000 in the previous year[4]. - The group experienced a significant decrease in employee and teaching consultancy service costs, which were approximately HKD 19,955,000 compared to HKD 30,775,000 in the previous year, reflecting a reduction of 35.4%[4]. - Other income for the three months was approximately HKD 9,505,000, down from HKD 11,482,000 in the previous year[4]. - Employee and teaching consultancy service costs were approximately HKD 20,000,000, a decrease of about 35% from approximately HKD 30,800,000 in the previous year[38]. - Other income for the group was approximately HKD 9,500,000, down from HKD 11,500,000 in the previous year[38]. Business Operations - The group has not reported any new product developments or market expansions during this period[6]. - The group has ceased operations in the adult education and training business in Australia since 2021[14]. - The group terminated its operations in Australia in April 2021, with related business revenue of zero during the reporting period[41]. - The group plans to continue exploring opportunities in the Australian education market once travel restrictions are lifted[37]. - The group has accelerated its expansion into the Singapore and Australia education markets in recent years[33]. - The group developed new courses to adapt to market trends and attract more students[34]. Share Capital and Investments - As of March 31, 2022, the company's issued share capital was HKD 45,760,000, comprising 457,600,000 shares with a par value of HKD 0.1 each[46]. - The company had approximately HKD 281,800,000 of unexercised convertible bonds as of March 31, 2022, compared to HKD 293,800,000 in the previous year[46]. - The company is actively seeking investment opportunities to expand its business in the dance school industry, particularly in Asia[50]. - The company aims to strengthen its position in the dance school sector in Hong Kong and overseas markets[50]. - The company will continue to seek suitable opportunities for business expansion in Hong Kong, mainland China, and overseas markets[51]. - The company has no major investments as of March 31, 2022[49]. Corporate Governance - The company has adhered to all corporate governance codes as per GEM listing rules without any deviations during the three months ending March 31, 2022[65]. - The company has adopted a code of conduct for directors' securities trading, complying with GEM listing rules, with no violations reported during the reporting period[66]. - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[70]. - The company received written confirmation from major shareholders regarding compliance with non-competition agreements as of December 31, 2021[64]. - No directors or major shareholders have any competing business interests during the reporting period[63]. Stock Options - The stock option plan allows for a maximum of 20,000,000 shares to be issued, representing 10% of the total issued shares post-IPO[58]. - As of March 31, 2021, there are 54,797,000 unexercised stock options available for holders to subscribe for new shares[62]. - A total of 15,192,000 stock options were granted to employees on June 15, 2021, at an exercise price of HKD 0.40 per share[62]. - The company has proposed to update the stock option plan to allow for a total of 35,410,000 shares, which is 10% of the issued shares as of the last approval date[59]. - The exercise price for stock options granted on February 11, 2020, is HKD 1.20 per share[62]. - The stock options granted on February 25, 2020, have an exercise price of HKD 1.44 per share[62]. Audit and Compliance - The financial information in the report has not been audited by the company's auditors, but the audit committee has reviewed the accounting principles and practices adopted by the group[69]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the reporting period[67].

Financial Performance - Total revenue increased from approximately HK$114.2 million in 2020 to approximately HK$178.6 million in 2021, representing a growth of about 56.4%[23]. - The increase in revenue was primarily driven by contributions from the early childhood education business, which added approximately HK$29.1 million, and the dance academy business, which contributed approximately HK$35.3 million[23]. - The group recorded a profit attributable to shareholders of approximately HK$49.4 million for the year ended December 31, 2021, compared to a loss of approximately HK$182.9 million for the previous year[24]. - The group’s other income for the year ended December 31, 2021, was approximately HK$51.7 million, remaining stable compared to HK$51.8 million in 2020[24]. - The group terminated its operations in Australia, resulting in revenue of approximately HKD 6,200,000 in 2021, down from HKD 42,100,000 in 2020[26]. - The profit attributable to the terminated operations was approximately HKD 24,600,000 in 2021, compared to a loss of HKD 128,900,000 in 2020[26]. Business Expansion and Strategy - The group opened 23 wholly-owned dance centers in Hong Kong in 2021 to enhance its competitive advantage and expand its geographic coverage[12]. - The group aims to maximize long-term returns for shareholders by establishing its own early childhood education brand and curriculum in Singapore[13]. - The company continues to seek investment opportunities in the education sector to enhance revenue sources and create potential synergies with existing early childhood education businesses[13]. - The group plans to open and/or acquire more dance centers in densely populated residential areas in Hong Kong to strengthen its market leadership[15]. - The group aims to accelerate its expansion into overseas markets to diversify and broaden its revenue sources[22]. - The group plans to continue seeking suitable opportunities for business expansion in Hong Kong, mainland China, and overseas markets[38]. Corporate Governance - The company is committed to high standards of corporate governance, adhering to the GEM Listing Rules[53]. - The roles of Chairman and CEO are clearly separated, held by Mr. Zhao and Dr. Qin respectively, ensuring a balance of power[62]. - The board has adopted a diversity policy, considering measurable criteria such as gender, age, ethnicity, and professional experience for board member selection[63][64]. - The board's diversity policy has been reviewed and deemed effective, achieving its set goals during the year[67]. - The Audit Committee held five meetings during the year to review financial results and ensure compliance with applicable accounting standards[80]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific matters[76]. Employee and Operational Insights - As of December 31, 2021, the total number of employees was 462, a decrease from 517 in 2020, with 95% being female[137]. - The employee composition included 12% senior, 73% middle, and 15% junior staff, with 31% based in Hong Kong and 69% in Singapore[137]. - The average number of employees in the Singapore subsidiary increased, contributing to higher operational costs[43]. - Employee turnover rate for males was 2%, while for females it was significantly higher at 38%[141]. - 69% of employees received training during the year, totaling 1,595 hours of training[144]. - No workplace injuries or fatalities were recorded during the reporting period, maintaining a zero injury rate for three consecutive years[143]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report highlights the company's commitment to sustainable practices and its focus on improving performance in these areas[105]. - The company aims to achieve a 15% reduction in emissions (Scope 1, 2, and 3) by 2031, using 2021 as the baseline year[123]. - The company has set goals to integrate economic, social, and environmental well-being into its business decisions to achieve sustainable development[111]. - The company has established a sustainability committee to oversee environmental, social, and governance (ESG) policies and strategies[109]. - The company actively engages with stakeholders, including regulatory bodies, employees, investors, suppliers, and the community, to understand their needs and aspirations[116]. Shareholder Engagement and Communication - The company emphasizes the importance of shareholder rights to convene special meetings, requiring at least 10% of the paid-up capital to make such requests[98]. - The board of directors is responsible for determining dividend policies, which will depend on various factors including operating performance and cash flow[101]. - The company has established multiple communication channels with shareholders and investors, including annual meetings and a dedicated website[102]. - Shareholder meeting notices were sent at least 20 business days prior to the annual general meeting, ensuring compliance with regulations[75]. Financial Management and Share Options - The company has granted a total of 57,897,000 and 54,797,000 share options under the share option scheme as of December 31, 2021, and the report date respectively[193]. - The maximum number of shares that can be issued upon the exercise of options under the share option plan is capped at 10% of the total issued shares, which is 2,000,000 shares[196]. - The company is focused on enhancing performance efficiency and retaining contributors beneficial to its long-term development through its share option plan[195]. - The company is committed to recognizing and rewarding contributions from eligible participants through its share option scheme[194].

Financial Performance - The group's revenue for the nine months ended September 30, 2021, was approximately HKD 138,400,000, compared to HKD 107,800,000 for the same period in 2020, representing an increase of about 28.4%[1] - The profit attributable to owners of the company for the nine months ended September 30, 2021, was approximately HKD 88,182,000, a significant recovery from a loss of HKD 96,465,000 in the same period of 2020[1] - Basic earnings per share for the nine months ended September 30, 2021, were approximately HKD 0.224, compared to a loss of HKD 0.269 per share for the same period in 2020[1] - Total comprehensive income for the nine months ended September 30, 2021, amounted to approximately HKD 95,561,000, compared to a loss of HKD 100,179,000 in the same period of 2020[3] - The group reported a pre-tax profit of HKD 89,006,000 for the nine months ended September 30, 2021, compared to a pre-tax loss of HKD 100,163,000 for the same period in 2020[2] - The group reported a total comprehensive income of HKD 95,367,000 for the nine months ended September 30, 2021, compared to a loss in the previous year[36] - The group recorded a profit attributable to owners of approximately HKD 88,200,000, compared to a loss of approximately HKD 96,500,000 in the same period last year[43] Revenue Breakdown - The Dance Academy business generated revenue of HKD 54,517,000, up 100.3% from HKD 27,259,000 in the previous year[14] - The Early Childhood Education business reported revenue of HKD 69,588,000, an increase of 83.6% compared to HKD 37,879,000 in the prior year[14] - Revenue from Hong Kong for the nine months was HKD 65,784,000, a 75.6% increase from HKD 37,415,000 in the prior year[24] - Revenue from Singapore reached HKD 66,356,000, up 86.1% from HKD 35,676,000 in the previous year[24] - Revenue from the early childhood education business in Singapore rose from approximately HKD 35,700,000 to approximately HKD 66,400,000, an increase of about 86.0%[42] - Revenue from the dance academy business in Hong Kong increased from approximately HKD 27,300,000 to approximately HKD 54,500,000, an increase of about 99.6%[42] Costs and Expenses - The group incurred financing costs of HKD 11,624,000 for the nine months ended September 30, 2021, compared to HKD 8,305,000 for the same period in 2020, indicating an increase of approximately 40.5%[2] - Other income for the nine months ended September 30, 2021, was approximately HKD 39,991,000, slightly up from HKD 39,452,000 in the same period of 2020[2] - Interest expenses for borrowings increased to HKD 2,525,000 for the nine months ended September 30, 2021, compared to HKD 573,000 in the same period last year[28] - Other operating expenses increased by approximately 20.1% to about HKD 35,800,000 compared to HKD 29,800,000 in the same period last year[43] Business Segments - The dance academy and early childhood education segments turned profitable starting from the second quarter of this fiscal year, with segment profits of approximately HKD 8,972,000 and HKD 11,388,000 respectively for the nine months ended September 30, 2021[1] - The Adult Education and Training segment incurred a loss of HKD 4,479,000, compared to a profit of HKD 34,660,000 in the same period last year[17] Share Capital and Ownership - The company has a total issued share capital of HKD 41,110,000 as of September 30, 2021, up from HKD 38,460,000 as of December 31, 2020[45] - As of September 30, 2021, the total issued share capital of the company was HKD 41,110,000, divided into 411,100,000 shares with a par value of HKD 0.1 each[57] - Mr. Zhao and Dr. Qin each hold 251,750,000 shares, representing 62.96% of the issued share capital[55] - Major shareholder Wealthy Together holds 198,750,000 shares, accounting for 48.35% of the issued share capital[58] Future Outlook and Strategy - The group continues to focus on developing new courses and enhancing existing ones to attract students in the competitive Hong Kong children's dance sector[38] - In Singapore, student enrollment increased from zero to over 110 within six months, despite the COVID-19 pandemic, demonstrating strong demand for the group's childcare services[39] - The group has successfully entered the Childcare Partner Operating Scheme in Singapore, which is expected to enhance the competitiveness and reputation of its schools[39] - The group remains optimistic about future opportunities in the Australian education market once travel restrictions are lifted[40] - The company is actively seeking investment opportunities to expand its business scope and diversify its existing operations, particularly in the dance school industry in Asia[51] - The company plans to continue seeking suitable opportunities for business expansion in both Hong Kong and overseas markets[52] Corporate Governance - The audit committee reviewed the accounting principles and practices adopted by the company for the nine months ending September 30, 2021, with no objections raised[73] - The board of directors consists of three executive directors and four independent non-executive directors as of the report date[74]

Financial Performance - The group's revenue for the six months ended June 30, 2021, was approximately HKD 91.6 million, an increase from HKD 69.5 million in the same period last year, representing a growth of about 31.5%[3] - Revenue from the childcare business in Singapore increased from approximately HKD 20 million to about HKD 43.8 million, a rise of approximately HKD 23.8 million or 119%[3] - Revenue from the dance academy business in Hong Kong rose from approximately HKD 19 million to about HKD 34.6 million, an increase of approximately HKD 15.6 million or 82.1%[3] - The profit attributable to shareholders for the six months ended June 30, 2021, was approximately HKD 86 million, compared to a loss of about HKD 110.3 million in the same period last year[3] - Basic earnings per share for the period were approximately HKD 0.2235, compared to a basic loss per share of approximately HKD 0.3104 in the previous year[3] - The group reported a total comprehensive income of approximately HKD 88.5 million for the six months ended June 30, 2021, compared to a total comprehensive loss of about HKD 112.1 million in the same period last year[5] Cost and Expenses - The group experienced a significant reduction in financing costs, which decreased from HKD 5.472 million to HKD 7.970 million for the six months ended June 30, 2021[4] - The group’s other income for the six months was approximately HKD 17.975 million, slightly down from HKD 18.757 million in the previous year[4] - Employee and teaching consultancy service costs were approximately HKD 60.8 million, an increase of about 7.0% compared to HKD 56.8 million in the previous year[72] Assets and Liabilities - Total assets decreased from HKD 362,102 million to HKD 351,386 million, a decline of approximately 3.5%[6] - Non-current liabilities decreased from HKD 385,963 million to HKD 372,818 million, a reduction of about 3.4%[7] - The company's total liabilities decreased from HKD 410,146 million to HKD 314,730 million, a decrease of about 23.2%[7] - Cash and cash equivalents decreased from HKD 38,458 million to HKD 24,276 million, a decline of approximately 36.8%[6] Future Outlook and Expansion - The group plans to continue expanding its operations in Singapore and Hong Kong, focusing on enhancing service offerings in the childcare and dance education sectors[3] - The board is optimistic about future growth prospects, driven by increased demand in the childcare and education markets[3] - The group continues to focus on developing new courses to attract students and expand its coverage in response to market trends[67] - The board believes that the acquisition of several preschool institutions in Singapore will provide an excellent development platform and opportunities to expand its early childhood education business internationally[83] Acquisitions and Investments - The company has entered into non-binding term sheets and memoranda of understanding to acquire interests in entities engaged in the education sector in Singapore and Thailand[43] - The acquisition of Cherie Hearts @ Eastgate Pte Ltd was completed for a total consideration of SGD 1,200,000 (approximately HKD 7,044,000), with SGD 1,000,000 (approximately HKD 5,870,000) paid by June 30, 2021[55] - The company committed to acquire Moriah Schoolhouse LLP and Moriah Schoolhouse @ FV LLP for a total cash consideration of SGD 1,300,000 (approximately HKD 7,085,000), with SGD 650,000 (approximately HKD 3,765,000) paid as of December 31, 2019[55] Share Capital and Governance - The total issued share capital of the company as of June 30, 2021, was HKD 38.46 million, divided into 384.6 million shares with a par value of HKD 0.1 each[88] - Directors and senior executives hold a combined 60.41% equity interest in the company, with Mr. Zhao and Dr. Qin each holding 225.25 million shares[87] - The company has adhered to all corporate governance codes as per GEM listing rules, with no deviations reported as of June 30, 2021[102] - The audit committee, composed of independent non-executive directors, reviewed the unaudited consolidated results for the six months ended June 30, 2021, and found no objections to the accounting treatment adopted by the company[106] Stock Options and Employee Incentives - The stock option plan allows for a maximum of 10% of the total issued shares to be granted as options, which translates to 20,000,000 shares post-IPO[92] - On June 15, 2021, the company granted 26,730,000 stock options at an exercise price of HKD 0.80 per share[97] - The company granted 15,192,000 share options to employees on June 15, 2021, with an exercise price of HKD 0.40, valid until June 14, 2024[99] Miscellaneous - The company did not declare any dividends for the six months ended June 30, 2021, consistent with the previous year[40] - The company reported no impairment of goodwill for the six months ended June 30, 2021, similar to the previous year[42] - There were no single customers contributing more than 10% of the total revenue during the reporting periods[32]

Financial Performance - For the three months ended March 31, 2021, the group's revenue was approximately HKD 38,400,000, compared to HKD 31,600,000 for the same period in 2020, representing an increase of 21.4%[3] - The profit attributable to shareholders for the three months ended March 31, 2021, was approximately HKD 40,400,000, compared to a loss of approximately HKD 60,800,000 for the same period last year[3] - Basic earnings per share for the three months ended March 31, 2021, were approximately HKD 0.105, compared to a loss per share of approximately HKD 0.1718 for the same period in 2020[5] - Total comprehensive income for the period was HKD 41,648,000, compared to a total comprehensive loss of HKD 64,732,000 for the same period last year[5] - The group reported a pre-tax profit of HKD 39,965,000 for the three months ended March 31, 2021, compared to a pre-tax loss of HKD 61,929,000 for the same period in 2020[4] Revenue Breakdown - Revenue from the Singapore early childhood education business increased from approximately HKD 7,900,000 in the previous year to approximately HKD 18,900,000, an increase of HKD 11,000,000 or 139%[3] - Revenue from the Dance Academy business was HKD 11,992,000, up 70.5% from HKD 7,027,000 in the previous year[16] - Revenue from the Early Childhood Education business reached HKD 19,733,000, a significant increase of 120.7% compared to HKD 8,934,000 in 2020[16] - Revenue from Hong Kong was HKD 14,633,000, up 48.0% from HKD 9,864,000 in 2020, while Singapore's revenue increased to HKD 18,883,000 from HKD 7,905,000, a rise of 138.5%[19] - Revenue from the early childhood education business rose to approximately HKD 10,800,000, while revenue from the dance academy business increased to approximately HKD 5,000,000[37] Other Income and Expenses - The group's other income for the three months ended March 31, 2021, was HKD 11,482,000, compared to HKD 4,491,000 in the previous year, indicating a significant increase[4] - Employee and teaching consultancy service costs were approximately HKD 30,800,000, an increase of about 4.9% from approximately HKD 29,300,000 in 2020[37] Business Operations - The company operates in various sectors including early childhood education, dance academies, and language training, indicating a diversified business model[7] - The group operates 25 wholly-owned dance centers in Hong Kong, 1 kindergarten, 16 international preschool institutions in Singapore, and 2 colleges in Australia[32] - The flagship childcare school in Singapore achieved a student enrollment rate of over 100 within six months of opening, despite delays due to the pandemic[34] - The company plans to continue exploring business opportunities in the Australian education market once travel restrictions are lifted[36] Share Capital and Options - As of March 31, 2021, the company's issued share capital was HKD 38,460,000, with a total of 384,600,000 shares issued[40] - The company has outstanding convertible bonds with a face value of approximately HKD 293,800,000 as of March 31, 2021[40] - The total issued share capital of the company as of March 31, 2021, was HKD 38.46 million, divided into 384.6 million shares with a par value of HKD 0.1 each[50] - The company has 32,667,000 unexercised share options available under the share option plan[59] - The share option plan allows for a maximum of 10% of the total issued shares to be granted as options, which is capped at 20,000,000 shares post-IPO[55] Governance and Compliance - The company has adhered to all provisions of the corporate governance code as outlined in the GEM Listing Rules Appendix 15 for the three months ending March 31, 2021[62] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[67] - The company has received annual written confirmations from its controlling shareholders regarding compliance with the non-competition agreement as of December 31, 2020[61] Future Outlook and Investments - The group aims to strengthen its position in the dance school industry in Hong Kong and overseas, actively seeking investment opportunities for expansion[44] - The group has been exploring suitable investment opportunities to diversify its business since the second half of 2018, including acquisitions in Singapore and Australia[44] - The group continues to seek suitable opportunities for business expansion in both Hong Kong and overseas markets[45] Miscellaneous - The company did not declare or recommend any dividends for the three months ended March 31, 2021, consistent with the previous year[30] - The group did not recognize any tax provisions for its operations in Australia due to reporting a loss for tax purposes during the period[27] - There were no significant acquisitions during the reporting period[42] - As of March 31, 2021, the group did not hold any significant investments[43] - The company has not reported any competitive interests from directors or major shareholders during the reporting period[60] - There were no purchases, sales, or redemptions of any listed securities by the company or its subsidiaries during the reporting period[64] - The financial information in the report has not been audited by the company's auditors, but the audit committee has reviewed the unaudited consolidated results for the three months ending March 31, 2021[66] - An indirect wholly-owned subsidiary was declared insolvent and will undergo voluntary liquidation as of April 27, 2021[47] - The company has not disclosed any other individuals with significant shareholdings apart from those listed[54]

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GEM are generally small ...

Financial Performance - The group's revenue for the nine months ended September 30, 2020, was approximately HKD 107.8 million, compared to approximately HKD 81.2 million for the same period in 2019, representing a year-over-year increase of 32.6%[4] - The company's loss attributable to owners for the nine months ended September 30, 2020, was approximately HKD 42.87 million, compared to HKD 21.58 million for the same period in 2019, indicating an increase in loss of 98.1%[4] - The basic loss per share for the nine months ended September 30, 2020, was approximately HKD 0.12, compared to HKD 0.0609 for the same period in 2019, reflecting a 96.5% increase in loss per share[4] - The total comprehensive loss attributable to owners for the nine months ended September 30, 2020, was approximately HKD 43.05 million, compared to HKD 21.45 million for the same period in 2019, indicating an increase of 100.5%[7] - The group reported a pre-tax loss of approximately HKD 46.56 million for the nine months ended September 30, 2020, compared to HKD 25.66 million for the same period in 2019, reflecting an increase of 81.6%[5] - For the nine months ended September 30, 2020, the loss attributable to owners was approximately HKD 42,865,000, compared to a loss of HKD 21,580,000 for the same period in 2019, indicating an increase of 98.5%[34] - The company reported a total loss before tax of HKD 46,563,000 for the nine months ended September 30, 2020[20] - The total accumulated losses as of September 30, 2020, amounted to HKD 234,265,000, reflecting the financial challenges faced by the company[38] Revenue Breakdown - For the nine months ended September 30, 2020, total revenue was HKD 107,751,000, an increase of 32.7% compared to HKD 81,195,000 for the same period in 2019[18] - The dance academy business generated revenue of HKD 27,259,000 for the nine months ended September 30, 2020, down 42.1% from HKD 47,090,000 in the previous year[18] - The early childhood education business saw revenue rise to HKD 37,879,000, an increase of 77.5% from HKD 21,358,000 in the same period last year[18] - Adult education and training business reported revenue of HKD 34,660,000 for the nine months ended September 30, 2020, with no revenue reported in the previous year[18] Other Income and Costs - Total other income for the nine months ended September 30, 2020, was HKD 39.45 million, compared to HKD 18.43 million for the same period in 2019, marking an increase of 114.5%[5] - The group experienced a significant increase in employee costs, which totaled HKD 88.31 million for the nine months ended September 30, 2020, compared to HKD 52.10 million for the same period in 2019, an increase of 69.4%[5] - The group's financing costs for the nine months ended September 30, 2020, were approximately HKD 8.31 million, compared to HKD 7.45 million for the same period in 2019, representing an increase of 11.5%[5] - The company’s advertising and promotional expenses for the nine months ended September 30, 2020, were HKD 12.07 million, compared to HKD 5.07 million for the same period in 2019, representing an increase of 138.4%[5] Impact of COVID-19 - The company has observed a negative impact on revenue and operating performance due to the COVID-19 outbreak, leading to the suspension of classes and a shift to online courses[40] - The company has implemented online teaching platforms to adapt to adverse changes in the environment due to the COVID-19 pandemic[43] Corporate Actions and Acquisitions - The company has entered into an agreement to acquire certain assets from Cherie Hearts for a cash consideration of SGD 1,200,000, equivalent to approximately HKD 6,840,000[41] - The company has committed to acquiring all business assets of Moriah Schoolhouse LLP and Moriah Schoolhouse @ FV LLP for a total cash consideration of SGD 1,300,000 (approximately HKD 7,085,000)[56] - The acquisition of Childrens Services Education Pty Ltd (CSE) is valued at AUD 3,040,000 (approximately HKD 14,470,000), with an initial payment of AUD 1,100,000 (approximately HKD 6,033,000) already made[56] - The company has conditionally agreed to acquire the Global Tots group for a maximum total consideration of SGD 7,800,000 (approximately HKD 42,510,000), which provides daycare and educational services[57] - The company has completed the acquisition of Ichiban assets for a cash consideration of SGD 600,000 (approximately HKD 3,270,000)[57] Share Capital and Options - As of September 30, 2020, the company's issued share capital was HKD 35,810,000, comprising 358,100,000 shares[51] - The weighted average number of ordinary shares issued for the three months and nine months ended September 30, 2020, were 358,100,000 and 356,231,000 shares, respectively[34] - The company granted a total of 24,787,000 share options at an exercise price of HKD 1.10 per share on October 4, 2019[72] - An additional 10,623,000 share options were granted at an exercise price of HKD 1.00 per share on October 11, 2019[72] - The company has adhered to all corporate governance codes as per GEM listing rules without any deviations as of September 30, 2020[80] Governance and Compliance - The board of directors consists of both executive and independent non-executive members, ensuring a balanced governance structure[85] - The audit committee reviewed the accounting principles and practices adopted by the group for the nine months ending September 30, 2020, and found no objections[84] - The company confirmed that no directors or major shareholders had any competing business interests during the reporting period[78] - The company has adopted a code of conduct for directors' securities transactions, which complies with the GEM listing rules[81]