Financial Performance - The Group recorded revenue of approximately HK$42.07 million for the six months ended 31 December 2021, representing an increase of approximately 208.21% compared to approximately HK$13.65 million for the corresponding period in 2020[18]. - The Group reported a loss of approximately HK$4.76 million for the six months ended 31 December 2021, compared to a profit of approximately HK$3.72 million in 2020[18]. - The Group's overall performance was negatively impacted by the COVID-19 pandemic, prompting a focus on business strategies to attract more clients in 2022[68]. - The company reported a loss before tax of HK$4,760,000 for the period, compared to a profit of HK$3,706,000 in the same period of 2020[140]. - Total comprehensive expense for the period was HK$4,759,000, contrasting with a comprehensive income of HK$3,724,000 in the prior year[143]. - The company experienced a decline in other income, gains, and losses, netting HK$1,409,000 compared to HK$17,281,000 in the previous year[140]. - The Group reported a loss attributable to owners of the Company for the Period was approximately HK$4.58 million, compared to a profit of approximately HK$3.73 million in 2020, resulting in a loss per share of HK$0.01[98]. Revenue Breakdown - Revenue from secondary tutoring services segment was approximately HK$679,000, representing a substantial decrease of approximately 33.4% compared to the last financial period[34]. - Revenue from English language training and test preparation courses was approximately HK$32,000, down from approximately HK$63,000 in 2020[38]. - Revenue generated from directly-owned education centers was approximately HK$12.7 million, representing an increase of approximately 64.9% compared to approximately HK$7.7 million in the corresponding period in 2020[42]. - Revenue from franchised centers increased to approximately HK$2.5 million, up approximately 38.9% from approximately HK$1.8 million in 2020[42]. - The Group recorded revenue from the VR and digital entertainment segment of approximately HK$24.69 million, generated from UFO Group acquired on May 26, 2021[76]. - Revenue from primary tutoring services, skill courses, and test preparation courses increased to approximately HK$15.4 million, representing an increase of approximately 62.11% compared to approximately HK$9.50 million in the corresponding period in 2020[75]. Financial Ratios and Assets - As of 31 December 2021, the Group had a current ratio of 8.67 times, up from 6.27 times as of 30 June 2021[19]. - The gearing ratio was 10.02% as of 31 December 2021, down from 13.35% as of 30 June 2021[19]. - The Group's total balance of cash and cash equivalents as of 31 December 2021 was approximately HK$21.47 million, down from approximately HK$38.10 million as of 30 June 2021[106]. - The Group's financial assets at fair value through profit or loss (FVPL) had a fair value of approximately HK$44.1 million, with a gain of approximately HK$0.6 million during the period[52]. - The Group's investment cost in Gransing was HK$30,831,000, with a percentage to the Group's total assets of 10.05% as of December 31, 2021[61]. - The segment assets as of December 31, 2021, totaled HK$111,531,000, with the largest contribution from investment in securities at HK$44,088,000[177]. Operational Changes and Strategies - The Group offers both physical and online classes to meet different student needs during the COVID-19 pandemic[34]. - The Group is exploring market opportunities to better deploy its resources in the education sector[34]. - The Group plans to leverage digital technology to adapt to campus suspension and social distancing, enhancing e-learning capabilities[100]. - The demand for experiential learning has increased, driving the development of VR learning and STEAM-based programs[100]. - The Group is considering opportunities for mergers and acquisitions in the education sector to increase market share and revenue base[100]. - The Group is required to utilize the Grant for PSNFCs for school operation expenses, ensuring effective use amid the suspension of classes due to COVID-19[194]. Staff and Expenses - Staff costs increased by approximately HK$2.1 million or approximately 17.14% compared to the corresponding period in 2020, due to the development of VR, digital entertainment, and STEAM education business[83]. - Total staff costs for the six months ended December 31, 2021, amounted to HK$14,338,000, an increase from HK$12,240,000 in the same period of 2020, reflecting a growth of approximately 17.1%[200]. - Other daily operation related expenses rose to HK$2,710,000 for the six months ended December 31, 2021, up from HK$2,121,000 in 2020, representing a significant increase of approximately 27.8%[200]. - The Group's legal and professional fees for the six months ended December 31, 2021, were HK$971,000, compared to HK$870,000 in the previous year, marking an increase of around 11.6%[200]. Investments and Acquisitions - The Group completed the acquisition of 60% of UFO Interactive Group Limited on 26 May 2021, expanding into the Virtual Reality and digital entertainment business[32]. - The Group completed the acquisition of 60% of UFO Group, which specializes in VR technology and STEAM education, enhancing its business portfolio and income sources[44]. - The Group held investments in 8 Hong Kong listed companies, with none exceeding 5% of the Group's total assets as of December 31, 2021[56]. - The Group's investment portfolio included 7 companies listed on the Main Board and 8 on the GEM of the Stock Exchange, with a total of 36,578 shares held[55]. Cash Flow and Financing - For the six months ended December 31, 2021, the net cash used in operating activities was HK$11,880,000, compared to HK$23,971,000 for the same period in 2020, indicating an improvement[153]. - The net cash used in investing activities was HK$837,000, a significant decrease from the net cash generated of HK$22,821,000 in the previous year[153]. - The net cash used in financing activities was HK$3,917,000, compared to HK$14,038,000 generated in the same period of 2020, reflecting a shift in financing strategy[153]. - The Group's treasury policy is prudent, primarily financing operations through internally generated resources and equity or debt financing[116].
源宇宙教育(01082) - 2022 - 中期财报