Business Overview - The group is a major overseas education consultancy provider in Hong Kong, primarily offering services to local students aiming to study in the UK, Australia, Canada, and the USA [13]. - The company operates as a single operating segment focused on providing overseas education consulting services, with no separate segment reporting [54]. Revenue and Income - For the six months ended September 30, 2025, the main revenue source continues to be commission income from arranging students to study in the UK and Australia [13]. - Revenue for the six months ended September 30, 2025, was approximately HKD 5.1 million, a decrease of about 26.2% compared to HKD 6.9 million for the same period in 2024 [20]. - Commission income from arranging students to study in the UK decreased to approximately HKD 2.1 million, accounting for 40.4% of total revenue, down from 48.7% in 2024 [21]. - Commission income from arranging students to study in Australia was approximately HKD 2.2 million, representing 43.1% of total revenue, slightly down from 33.3% in 2024 [22]. - Commission income from Canada and the US decreased to approximately HKD 0.6 million, accounting for 11.1% of total revenue, down from 14.6% in 2024 [23]. - Other income increased to approximately HKD 5.8 million, primarily due to net foreign exchange gains of about HKD 4.4 million [24]. - Revenue from overseas education consulting services for the six months ended September 30, 2025, was HKD 5,106,000, a decrease from HKD 6,915,000 in the same period of 2024, representing a decline of approximately 26% [56]. Expenses and Costs - Marketing costs decreased to approximately HKD 1.1 million, reflecting a shift to more cost-effective digital marketing strategies [25]. - Employee costs reduced to approximately HKD 4.1 million, down from HKD 6.3 million in 2024, due to staff reallocation [27]. - The company reported a significant increase in foreign exchange gains, which amounted to HKD 4,383,000 for the six months ended September 30, 2025, compared to HKD 1,897,000 in 2024 [57]. - Financing costs for lease liabilities increased to HKD 71,000 in 2025 from HKD 57,000 in 2024, while bank interest expenses were HKD 62,000 in 2025 [58]. Financial Performance - The group recorded a loss of approximately HKD 0.1 million for the six months ended September 30, 2025, a decrease from a loss of HKD 1.4 million in 2024 [30]. - The company reported a loss before tax of HKD 21, significantly improved from a loss of HKD 1,327 in the prior year [46]. - The total comprehensive loss for the period was HKD 340, compared to HKD 1,229 in the previous year, indicating a reduction in losses [46]. - For the six months ended September 30, 2025, the company reported a net loss of HKD 1,852,000, compared to a net loss of HKD 1,424,000 for the same period in 2024 [48]. Cash Flow and Assets - As of September 30, 2025, the group's cash and bank balances totaled approximately HKD 43.5 million, an increase from HKD 35.7 million as of March 31, 2025 [31]. - Cash and cash equivalents increased to HKD 43.561 million from HKD 35.746 million as of March 31, 2025 [47]. - The company generated a net cash inflow from investing activities of HKD 5,622,000 for the six months ended September 30, 2025, compared to HKD 6,227,000 for the same period in 2024 [49]. - The company’s total assets less current liabilities stood at HKD 47.231 million as of September 30, 2025, down from HKD 48.773 million as of March 31, 2025 [47]. Strategic Initiatives - The company is investing resources in digital marketing channels to enhance brand awareness and attract a broader range of students and parents beyond Hong Kong [14]. - A new online service system is being developed to expedite the processing of inquiries and admissions applications, providing direct and immediate support to potential students and their families [14]. - The company is exploring the feasibility of developing supplementary education-related businesses, such as tutoring courses, to help students improve academic performance and exam skills [14]. - The company aims to maintain competitiveness and improve service quality in a challenging business environment by seeking qualified consultants and strategic partners [14]. - The company recognizes the current market conditions as an appropriate time to develop auxiliary businesses due to the decreasing number of eligible students and intense competition in overseas education consultancy services [14]. Shareholder Information - Mr. Zhong holds 892,710,000 shares, representing 51% of the company, through a controlled corporation [77]. - Major shareholders include Mr. Zhong and Ms. Yin, each holding 51% of the shares, while Song Wenxia holds 24% [79]. - No major shareholders or directors have interests in any competing businesses as of the report date [81]. Corporate Governance - The company confirms compliance with all applicable corporate governance codes as per GEM listing rules [74]. - The company has adopted the GEM listing rules regarding the code of conduct for securities trading by directors, with full compliance confirmed by all directors [75]. - The audit committee has been established in accordance with GEM Listing Rules and consists of three independent non-executive directors [84]. - The audit committee aims to provide independent review and oversight of financial reporting and internal controls [84]. Dividends and Share Options - The company did not recommend an interim dividend for the six months ended September 30, 2025, consistent with the previous year [62]. - No interim dividend is recommended for the six months ending September 30, 2025, consistent with the previous period [72]. - The company has a share option scheme in place to attract and retain talent, with specific terms outlined [82]. - No share options have been granted, exercised, or canceled since the adoption of the share option scheme [83].
大地教育(08417) - 2026 - 中期业绩