Financial Performance - Revenue for the six months ended January 31, 2025, increased to HKD 94,232,000, up 18.2% from HKD 79,704,000 for the same period in 2024[4] - The adjusted loss for the period was HKD (2,711,000), an improvement from HKD (4,951,000) in the previous year[4] - The overall loss attributable to owners of the company was HKD (7,972,000), compared to HKD (5,114,000) in the previous year[4] - Revenue for 2025 reached HKD 94,232,000, an increase of 18.3% compared to HKD 79,704,000 in 2024[46] - The net loss for the period was HKD 8,275,000 in 2025, up from HKD 3,776,000 in 2024, reflecting a worsening financial position[46] - Operating loss for 2025 was HKD 7,161,000, compared to a loss of HKD 1,991,000 in 2024, indicating a significant decline in performance[46] - The company reported a pre-tax loss of HKD 7,972,000 for the six months ended January 31, 2025, compared to a loss of HKD 5,114,000 for the same period in 2024, representing a 55% increase in losses year-over-year[68] - The company reported a pre-tax loss of HKD 8,229,000 for the six months ended January 31, 2025, compared to a loss of HKD 3,273,000 for the same period in 2024[91] Revenue Breakdown - Revenue from private secondary school supplementary education services rose to HKD 51,786,000, accounting for 55.0% of total revenue, down from 62.6% in the previous year[14] - Revenue from school services surged by 86.5% to HKD 20,390,000, compared to HKD 10,934,000 in the prior period[13] - Revenue from private secondary day school services revenue increased by HKD 2,000,000 or 29.4% due to higher student enrollment and tuition fees[17] - Revenue from private secondary school tutoring services increased by HKD 1,900,000 or 3.8%, from HKD 49,900,000 to HKD 51,800,000, attributed to growth in enrollment for international courses outside of HKDSE[22] - Revenue from private secondary day schools rose by HKD 2,000,000 or 29.4%, from HKD 6,700,000 to HKD 8,700,000, due to increased tuition fees and student enrollment[22] - Revenue from supporting educational services and products grew by HKD 1,200,000 or 9.9%, from HKD 12,100,000 to HKD 13,300,000, driven by a significant increase in mock exam service revenue[23] - Mock exam service revenue skyrocketed by HKD 2,200,000 or 222.7%, from HKD 1,000,000 to HKD 3,300,000, due to earlier scheduling of the exams compared to the previous year[19] - Other income increased by HKD 1,900,000 or 26.1%, from HKD 7,300,000 to HKD 9,200,000, mainly due to growth in advertising revenue[24] Business Expansion and Strategy - The company is focusing on expanding its education services into mainland China, enhancing its market presence[13] - The company aims to diversify its business strategy, reducing reliance on private secondary school supplementary education services[13] - The company is expanding its market presence in mainland China while strengthening its positioning in Hong Kong, capitalizing on the growing demand for HKDSE-related educational services[20] - The establishment of a new education consulting center in Shenzhen lays the foundation for further development in the Greater Bay Area[20] - The company remains optimistic about future growth, leveraging educational technology and enhancing brand awareness to seize new opportunities in the evolving educational landscape[21] Cost and Expenses - Employee costs increased by HKD 7,700,000 or 22.2% from HKD 34,700,000 in the six months ended January 31, 2024, to HKD 42,400,000 in the six months ended January 31, 2025, primarily due to business expansion in mainland China[27] - Printing and other operating expenses rose by HKD 5,600,000 or 27.7% from HKD 20,400,000 to HKD 26,000,000, driven by increased service fees to support business growth in school services[30] - Advertising and promotional expenses surged by HKD 3,100,000 or 99.5% from HKD 3,100,000 to HKD 6,200,000, reflecting increased marketing efforts in mainland China[32] Cash Flow and Financial Position - The cash flow from operating activities showed a net outflow of HKD 3,533,000, compared to a net inflow of HKD 5,885,000 in the previous year[52] - The company reported a net cash decrease of HKD 11,034,000, compared to an increase of HKD 12,919,000 in the prior year[52] - The financing activities resulted in a net cash outflow of HKD 9,506,000, contrasting with a net inflow of HKD 6,776,000 in 2024[52] - The group's cash and cash equivalents decreased from HKD 76,600,000 as of July 31, 2024, to HKD 65,700,000 as of January 31, 2025[35] - Cash and cash equivalents decreased to HKD 65,681,000 as of January 31, 2025, down from HKD 76,560,000 as of July 31, 2024, a decline of 14.2%[86] Shareholder Information and Corporate Governance - The board did not recommend an interim dividend for the six months ended January 31, 2025, consistent with the previous year[42] - The company is primarily held by Zunli Enterprises Limited, which owns 73.9% of the shares[102] - Key shareholders, including Ms. Liang Heqi and Mr. Tan Huilong, have agreed to jointly control their respective interests in the company[102] - The company has adopted a post-IPO share option plan effective from July 13, 2018, to incentivize employees and retain talent[105] - The company aims to enhance shareholder value and accountability through high standards of corporate governance[111] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim report and the unaudited financial statements for the six months ending January 31, 2025[114] Assets and Liabilities - Total assets increased to HKD 194,713,000 in 2025 from HKD 188,718,000 in 2024, showing a growth of 3.9%[47] - Total liabilities decreased slightly to HKD 142,901,000 in 2025 from HKD 140,590,000 in 2024[49] - The equity attributable to owners of the company increased to HKD 52,458,000 in 2025 from HKD 44,487,000 in 2024, a rise of 18.4%[47] - The debt-to-equity ratio as of January 31, 2025, was 210.8%, up from 189.0% as of July 31, 2024, indicating increased leverage[40] Related Party Transactions - The company reported related party transactions with Dragon Holdings amounting to HKD 1,200,000 for lease liabilities[93] - Revenue from private secondary school support services with Upstream Education reached HKD 317,000, while marketing and promotional services generated HKD 900,000[93] - Service fees from Lingyou Education amounted to HKD 3,004,000, an increase from HKD 1,431,000 in the previous year[93]
精英汇集团(01775) - 2025 - 中期财报