Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately HKD 89,000,000, compared to HKD 69,200,000 for the same period in 2022, representing a growth of about 28.6%[3] - The loss attributable to shareholders for the six months ended June 30, 2023, was approximately HKD 2,300,000, a significant improvement from a loss of HKD 15,500,000 in the same period last year, indicating a reduction of approximately 85.2%[3] - The basic loss per share for the six months ended June 30, 2023, was approximately HKD 0.38, compared to HKD 3.40 for the same period in 2022, reflecting a decrease of about 88.8%[3] - Total comprehensive loss for the six months ended June 30, 2023, was HKD 2,309,000, compared to a loss of HKD 7,728,000 in the same period last year, showing an improvement of approximately 70.1%[6] - The company reported a loss of HKD 2,268,000 for the six months ended June 30, 2023, compared to a loss of HKD 15,541,000 for the same period in 2022, indicating a significant improvement in performance[10] - The company’s total comprehensive loss for the period was HKD (3,667,000) for the six months ended June 30, 2023, compared to HKD (7,804,000) for the same period in 2022, indicating a reduction of approximately 53%[10] - The loss attributable to the owners of the company for the reporting period was approximately HKD 910,000, a decrease from a loss of approximately HKD 14,100,000 in the same period last year[69] Assets and Liabilities - Non-current assets as of June 30, 2023, amounted to HKD 259,463,000, a decrease from HKD 264,055,000 as of December 31, 2022[7] - Current assets increased to HKD 116,691,000 as of June 30, 2023, compared to HKD 100,144,000 as of December 31, 2022, representing a growth of approximately 16.5%[7] - The total liabilities as of June 30, 2023, were HKD 511,095,000, slightly down from HKD 513,904,000 as of December 31, 2022[7] - The total liabilities decreased from HKD 87,619,000 as of December 31, 2022, to HKD 81,812,000 as of June 30, 2023, showing a reduction of approximately 6.5%[8] - The company’s non-current liabilities decreased from HKD 71,224,000 as of December 31, 2022, to HKD 65,926,000 as of June 30, 2023, reflecting a decline of about 7.5%[8] - The total equity attributable to the owners of the company decreased to HKD (225,809,000) as of June 30, 2023, from HKD (245,022,000) as of December 31, 2022, indicating a reduction of approximately 7.5%[10] Cash Flow and Financing - The group reported a decrease in financing costs to HKD 2,496,000 for the six months ended June 30, 2023, compared to HKD 4,582,000 for the same period in 2022, reflecting a reduction of approximately 45.5%[4] - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 28,208,000, compared to HKD 17,638,000 for the same period in 2022, representing a 60% increase[12] - The net cash used in financing activities was HKD (15,968,000) for the six months ended June 30, 2023, compared to HKD (12,324,000) for the same period in 2022, representing an increase of 29.5%[12] - The company made a partial repayment of USD 2,000,000 (approximately HKD 15,600,000) to the noteholders on April 5, 2023, as part of the discussions regarding the repayment of convertible bonds[72] Revenue Breakdown - The total revenue for the six months ended June 30, 2023, was HKD 89,045,000, representing a 28.7% increase from HKD 69,214,000 in the same period of 2022[22] - The dance academy business generated revenue of HKD 32,560,000, up from HKD 17,000,000, indicating a significant growth[22] - The early childhood education business reported revenue of HKD 51,160,000, compared to HKD 48,096,000, reflecting a growth of 2.2%[22] - The total loss from the dance academy business was HKD 3,625,000, while the early childhood education business achieved a profit of HKD 13,903,000[25] Share Capital and Options - The company issued 228,800,000 new shares, increasing the issued share capital to HKD 68,640,000 as of June 30, 2023[10] - The total issued share capital of the company as of June 30, 2023, was HKD 68.64 million, divided into 686.4 million shares with a par value of HKD 0.1 each[96] - Directors and senior management hold a total of 418,125,000 shares, representing 60.92% of the issued share capital[93] - The company has 27,325,892 unexercised share options available for subscription as of June 30, 2023[106] - The total number of shares available for issuance under the share option plan is 41,110,000, accounting for 5.99% of the company's issued shares[107] - The share option plan was adopted on September 26, 2014, and allows for a maximum of 10% of the issued shares to be granted as options[100] Corporate Governance and Compliance - The company has received annual written confirmation from its controlling shareholders regarding compliance with the non-competition agreement as of December 31, 2022[110] - The company has adhered to all provisions of the corporate governance code as outlined in the GEM Listing Rules Appendix 15 for the six months ending June 30, 2023[111] - The audit committee, composed of independent non-executive directors, reviewed the unaudited consolidated results for the six months ending June 30, 2023, and found no objections to the accounting treatment adopted by the company[115] Future Plans and Opportunities - The board is actively seeking investment opportunities to expand its dance school business, particularly in the Asian market, and has been involved in acquiring preschool institutions in Singapore since 2018 and educational businesses in Australia since 2019[89] - The company aims to continue expanding its business in Hong Kong, mainland China, and overseas markets[90]
SDM教育(08363) - 2023 - 中期财报