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]
SDM教育(08363) - 2020 Q3 - 季度财报