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]
SDM教育(08363) - 2019 Q1 - 季度财报