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].
源宇宙教育(01082) - 2023 - 年度财报