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].
SDM教育(08363) - 2018 - 年度财报