Financial Performance - The group's revenue for the nine months ended September 30, 2019, was approximately HKD 81,200,000, compared to HKD 50,400,000 for the same period in 2018, representing a growth of 61.5%[3] - The loss attributable to owners of the company for the nine months ended September 30, 2019, was approximately HKD 21,580,000, compared to HKD 10,374,000 for the same period in 2018, indicating an increase in loss of 108.5%[3] - The basic loss per share for the nine months ended September 30, 2019, was approximately HKD 6.09 cents, compared to HKD 3.7 cents for the same period in 2018, reflecting an increase of 64.3%[5] - The group's total comprehensive loss for the nine months ended September 30, 2019, was HKD 25,762,000, compared to HKD 13,096,000 for the same period in 2018, which is an increase of 96.7%[5] - The group reported a loss before tax of HKD 25,655,000 for the nine months ended September 30, 2019, compared to HKD 13,089,000 for the same period in 2018, which is an increase of 96.5%[4] - The group reported a total loss before tax of HKD 25,655,000 for the nine months ended September 30, 2019, compared to a loss of HKD 10,374,000 for the same period in 2018[36] - The net loss attributable to the owners of the company was approximately HKD 21.6 million, compared to a loss of approximately HKD 10.4 million in the same period last year[49] Revenue Breakdown - The dance academy business generated revenue of HKD 47,090,000 for the nine months ended September 30, 2019, compared to HKD 46,227,000 for the same period in 2018, showing a slight increase of 1.9%[23] - The early childhood education business saw significant growth, with revenue rising to HKD 21,358,000 for the nine months ended September 30, 2019, compared to HKD 3,597,000 in the same period of 2018, marking an increase of approximately 493.3%[23] - The group’s other revenue streams, including speech therapy and children's photography services, contributed HKD 12,200,000 for the nine months ended September 30, 2019, compared to HKD 586,000 in the same period of 2018, indicating substantial growth[23] - The contribution from the early childhood education business was approximately HKD 21.4 million, while contributions from speech therapy and children's photography services were approximately HKD 5.4 million and HKD 6.8 million, respectively[46] Expenses and Costs - The group's employee costs for the nine months ended September 30, 2019, were HKD 52,103,000, compared to HKD 27,429,000 for the same period in 2018, representing an increase of 89.5%[4] - The group's financing costs for the nine months ended September 30, 2019, were HKD 7,449,000, compared to HKD 1,672,000 for the same period in 2018, indicating an increase of 345.5%[4] - The total expenses for the group, including corporate expenses, amounted to HKD 25,781,000, contributing to the overall loss[28] - Other operating expenses increased by approximately 62.7% to about HKD 27.5 million, attributed to professional fees from business acquisitions and increased overseas travel expenses[49] Accounting Standards and Compliance - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2019, which did not result in significant changes to the accounting policies or financial statements[10] - The group recognized lease liabilities of HKD 65,856,000 upon the initial application of HKFRS 16, which was discounted using an incremental borrowing rate of approximately 8%[15] - The total depreciation and amortization for the nine months ended September 30, 2019, was HKD 29,878,000, compared to HKD 4,398,000 under the previous accounting standard, reflecting a significant increase of approximately 579.5%[18] - The company has not yet applied new accounting standards that have been issued but are not yet effective, and is currently assessing their potential impact on financial performance[18] Shareholder Information - The total issued share capital of the company as of September 30, 2019, was HKD 35,410,000, divided into 354,100,000 shares with a par value of HKD 0.1 each[74] - Mr. Zhao holds 198,750,000 shares, representing 56.13% of the company's issued share capital[72] - Major shareholder Wealthy Together also holds 198,750,000 shares, equivalent to 56.13% of the issued share capital[75] - Other significant shareholders include Mr. Xu Peixiang with 35,722,000 shares (10.09%) and Chen Jiaxin with 28,000,000 shares (7.91%)[75] Corporate Governance - The company adhered to all corporate governance codes as per GEM listing rules during the nine months ending September 30, 2019, with no deviations reported[84] - The company has adopted a code of conduct for securities trading, with all directors confirming compliance during the reporting period[85] - The audit committee, composed of independent non-executive directors, reviewed the accounting principles and financial reporting matters for the nine months ending September 30, 2019, with no objections raised[87] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[88] Business Expansion and Acquisitions - The company completed the acquisition of Ability Education Pty Ltd, which became an indirect wholly-owned subsidiary, effective September 30, 2019[43] - The company plans to accelerate its expansion into overseas markets and is considering potential acquisition opportunities or partnerships[45] - The group is actively seeking investment opportunities to expand its business in the dance school industry, particularly in Asia[67] - Potential acquisitions include professional psychological services, preschools in Singapore and Thailand, and vocational training centers in Australia, aligning with the group's expansion plans[67] - The board believes that these potential acquisitions will enhance the group's competitive position in the international early childhood education market[67]
SDM教育(08363) - 2019 Q3 - 季度财报