Financial Performance - For the year ended June 30, 2025, the Group recorded revenue of approximately HK$68.04 million, a decrease of approximately 44.38% compared to HK$122.32 million in 2024[12] - Loss attributable to owners of the Company for the Year amounted to approximately HK$51.65 million, compared to a loss of approximately HK$27.56 million in 2024[12] - Revenue from private educational services was approximately HK$29.86 million, slightly down from approximately HK$30.52 million in 2024[15] - Revenue from directly-owned education centres and non-profit making organisations was approximately HK$24.82 million, representing an increase of approximately 4.37% compared to HK$23.78 million in 2024[17] - Revenue contributed from franchised centres was approximately HK$4.28 million, an increase of approximately 9.74% compared to approximately HK$3.90 million in 2024[17] - Revenue from STEAM education services decreased by approximately 69.68% to about HK$0.57 million, down from approximately HK$1.88 million in the last financial year[20] - Revenue from VR product sales and related services was approximately HK$0.49 million, while gaming product sales generated approximately HK$34.16 million, compared to about HK$2.26 million and HK$87.10 million in 2024, respectively[21] - Revenue from secondary tutoring services decreased to approximately HK$0.18 million, a decline of approximately 81.25% from approximately HK$0.96 million in the previous year[66] - Revenue from primary tutoring services, skill courses, and test preparation courses increased to approximately HK$29.11 million, an increase of approximately 5.17% from approximately HK$27.68 million in the last financial year[66] Impairment and Losses - Impairment loss on trade receivables and contract assets was approximately HK$22.52 million, compared to a reversal of approximately HK$4.82 million in 2024[12] - The impairment loss on goodwill was approximately HK$13.15 million, compared to HK$Nil in 2024[12] - Impairment losses recognized for the year amounted to approximately HK$9.71 million, a significant increase from HK$998,000 in 2024, reflecting a deterioration in asset quality[43] - The Group's other income, gains, and losses recorded a net loss of approximately HK$39.61 million, primarily due to impairment losses totaling approximately HK$43.75 million[69] - Loss attributable to owners of the Company amounted to approximately HK$51.65 million, primarily due to fair value losses on financial assets and impairment losses on trade receivables and goodwill[84] Operational Changes and Strategies - The Group launched online classes and other online learning modes to adapt to changing educational needs[15] - The "Modern Education" Learning Centre was relocated and underwent refinement initiatives to enhance operational efficiency[16] - The Group is strategically repositioning for growth by integrating technologies into its products and expanding into new business divisions, reflecting a shift beyond traditional education services[85] - The Group's strategic realignment will enhance resource allocation towards STEAM education to meet significant demand in this field[20] Employee and Cost Management - Staff costs decreased by approximately HK$2.65 million or 8.67% to approximately HK$27.93 million, attributed to improved cost efficiency[70] - Tutor contractor fees increased by approximately HK$1.06 million or 42.74% to approximately HK$3.54 million, due to changes in workforce structure[71] - Employee costs decreased by approximately HK$2.65 million or 8.67% to approximately HK$27.93 million, attributed to improved cost efficiency from business optimization[75] - Marketing expenses decreased significantly by approximately HK$1.53 million or 56.46% to approximately HK$1.18 million, due to a shift to more cost-efficient advertising media[77] - Other operating expenses decreased by approximately HK$0.83 million or 9.76% to approximately HK$7.67 million, as a result of ongoing cost control measures[81] Financial Position and Ratios - The Group's total cash and cash equivalents as of June 30, 2025, amounted to approximately HK$1.54 million, a decrease from approximately HK$8.65 million in 2024[94] - The current ratio as of June 30, 2025, was approximately 1.61 times, down from approximately 6.04 times in 2024[94] - The gearing ratio increased to approximately 45.71% as of June 30, 2025, compared to approximately 24.16% in 2024[97] - Total interest-bearing borrowings as of June 30, 2025, were approximately HK$18,870,000, compared to HK$17,000,000 as of June 30, 2024[98] - The capital debt ratio as of June 30, 2025, was approximately 45.71%, an increase from 24.16% as of June 30, 2024[99] Risk Management and Compliance - The Group faces sourcing risk due to reliance on tutors for quality tutoring services, which may impact revenue if contracts are not renewed[145] - Business interruption risk is present as the Group rents education centers, and failure to renew leases could adversely affect operations[150] - The private tutoring industry is highly competitive, with a decrease in student numbers and an increase in small tutoring centers intensifying market competition[151] - Compliance with regulatory requirements is prioritized, with measures in place to minimize non-compliance risks[160] - The Group has adhered to the Listing Rules of The Stock Exchange of Hong Kong, ensuring proper disclosure and corporate governance[161] Corporate Governance and Social Responsibility - The Group is committed to environmental sustainability, promoting energy conservation and recycling practices in its operations[158] - The Group has complied with all relevant laws and regulations that have a significant impact on its business and operations during the Year[167] - The Group is committed to providing competitive remuneration packages and training for employees to enhance their career paths[171] - The Group regularly reviews its teaching materials to meet student demand and market trends, aiming for corporate sustainability[172] - The Group has established long-standing relationships with suppliers to ensure business sustainability and shared commitment to quality[173] Shareholder and Investment Information - The Board does not recommend the payment of a final dividend for the Year (2024: nil)[175] - The Group did not purchase, sell, or redeem any of its listed securities during the year[125] - As of June 30, 2025, the Group did not hold any treasury shares[125] - Significant investments under FVOCI included assets valued at 5% or more of the group's audited total assets, indicating a focus on maintaining substantial equity positions[55] - The Group's investment strategy for Convoy focuses on long-term holding to manage market fluctuations and potential volatility[60]
源宇宙教育(01082) - 2025 - 年度财报