Financial Performance - The group's revenue for the three months ended March 31, 2022, was approximately HKD 20,500,000, a decrease of 46.5% compared to HKD 38,400,000 for the same period last year[3]. - The profit attributable to shareholders for the same period was approximately HKD 13,100,000, down 67.6% from HKD 40,400,000 in the previous year[3]. - Basic earnings per share for the three months ended March 31, 2022, were approximately HKD 2.87, compared to HKD 10.50 for the same period last year[3]. - The group reported a loss before tax of approximately HKD 13,463,000, compared to a profit before tax of HKD 39,965,000 in the previous year[4]. - Total comprehensive loss for the period was approximately HKD 14,204,000, compared to a total comprehensive income of HKD 41,648,000 in the previous year[5]. - The group reported a loss attributable to shareholders of approximately HKD 13,132,000 for the three months ended March 31, 2022, compared to a profit of HKD 40,373,000 for the same period in 2021[29]. - The group recorded a loss attributable to owners of approximately HKD 13,100,000, compared to a profit of about HKD 40,400,000 in the same period last year, marking a significant decline[39]. Revenue Breakdown - Revenue from the Dance Academy business was HKD 2,606,000, down 78.3% from HKD 11,992,000 in the previous year[16]. - Revenue from the Early Childhood Education business was HKD 15,452,000, a decline of 21.6% from HKD 19,733,000 in the prior year[16]. - Revenue from Hong Kong was HKD 6,009,000, down 59.0% from HKD 14,633,000 in the previous year, while revenue from Singapore was HKD 14,492,000, a decrease of 23.3% from HKD 18,883,000[19]. - Total revenue decreased from approximately HKD 38,400,000 to about HKD 20,500,000, a reduction of approximately 46.5% due to decreased income from the dance academy business[38]. Costs and Expenses - The group incurred financing costs of approximately HKD 3,088,000, an increase from HKD 2,699,000 in the previous year[4]. - The group experienced a significant decrease in employee and teaching consultancy service costs, which were approximately HKD 19,955,000 compared to HKD 30,775,000 in the previous year, reflecting a reduction of 35.4%[4]. - Other income for the three months was approximately HKD 9,505,000, down from HKD 11,482,000 in the previous year[4]. - Employee and teaching consultancy service costs were approximately HKD 20,000,000, a decrease of about 35% from approximately HKD 30,800,000 in the previous year[38]. - Other income for the group was approximately HKD 9,500,000, down from HKD 11,500,000 in the previous year[38]. Business Operations - The group has not reported any new product developments or market expansions during this period[6]. - The group has ceased operations in the adult education and training business in Australia since 2021[14]. - The group terminated its operations in Australia in April 2021, with related business revenue of zero during the reporting period[41]. - The group plans to continue exploring opportunities in the Australian education market once travel restrictions are lifted[37]. - The group has accelerated its expansion into the Singapore and Australia education markets in recent years[33]. - The group developed new courses to adapt to market trends and attract more students[34]. Share Capital and Investments - As of March 31, 2022, the company's issued share capital was HKD 45,760,000, comprising 457,600,000 shares with a par value of HKD 0.1 each[46]. - The company had approximately HKD 281,800,000 of unexercised convertible bonds as of March 31, 2022, compared to HKD 293,800,000 in the previous year[46]. - The company is actively seeking investment opportunities to expand its business in the dance school industry, particularly in Asia[50]. - The company aims to strengthen its position in the dance school sector in Hong Kong and overseas markets[50]. - The company will continue to seek suitable opportunities for business expansion in Hong Kong, mainland China, and overseas markets[51]. - The company has no major investments as of March 31, 2022[49]. Corporate Governance - The company has adhered to all corporate governance codes as per GEM listing rules without any deviations during the three months ending March 31, 2022[65]. - The company has adopted a code of conduct for directors' securities trading, complying with GEM listing rules, with no violations reported during the reporting period[66]. - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[70]. - The company received written confirmation from major shareholders regarding compliance with non-competition agreements as of December 31, 2021[64]. - No directors or major shareholders have any competing business interests during the reporting period[63]. Stock Options - The stock option plan allows for a maximum of 20,000,000 shares to be issued, representing 10% of the total issued shares post-IPO[58]. - As of March 31, 2021, there are 54,797,000 unexercised stock options available for holders to subscribe for new shares[62]. - A total of 15,192,000 stock options were granted to employees on June 15, 2021, at an exercise price of HKD 0.40 per share[62]. - The company has proposed to update the stock option plan to allow for a total of 35,410,000 shares, which is 10% of the issued shares as of the last approval date[59]. - The exercise price for stock options granted on February 11, 2020, is HKD 1.20 per share[62]. - The stock options granted on February 25, 2020, have an exercise price of HKD 1.44 per share[62]. Audit and Compliance - The financial information in the report has not been audited by the company's auditors, but the audit committee has reviewed the accounting principles and practices adopted by the group[69]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the reporting period[67].
SDM教育(08363) - 2022 Q1 - 季度财报