Revenue Performance - For the nine months ended December 31, 2022, the group's revenue was approximately HKD 9.4 million, a decrease of about 7.9% compared to HKD 10.3 million for the same period in 2021[13]. - The decrease in revenue was primarily due to the depreciation of foreign currencies against the Hong Kong dollar, as the group's revenue is mainly denominated in foreign currencies based on the location of its clients[13]. - Total revenue for the nine months ended December 31, 2022, was approximately HKD 9,449 million, down from HKD 10,254 million in 2021[23]. - Revenue from overseas education consulting services for the nine months ended December 31, 2022, was HKD 9,449,000, a decrease of 7.9% from HKD 10,254,000 in the same period of 2021[35]. Income Sources - The group’s primary revenue source continues to be overseas education consulting services, particularly for students intending to study in the UK and Australia[7]. - Commission income from arranging students to study in the UK accounted for approximately 61.7% of total revenue for the nine months ended December 31, 2022, down from 60.4% in 2021, with a decrease to about HKD 5.8 million from HKD 6.2 million in 2021[14]. - Commission income from arranging students to study in Australia decreased by approximately HKD 0.3 million to about HKD 1.7 million, representing 17.8% of total revenue for the nine months ended December 31, 2022, compared to 16.8% in 2021[15]. - Total commission income from arranging students to study in Canada and the US decreased by approximately 7.5% to about HKD 1.7 million, accounting for 17.8% of total revenue for the nine months ended December 31, 2022[16]. - Other income increased from approximately HKD 2.2 million in 2021 to about HKD 3.3 million in 2022, representing a growth of approximately 51.7%[17]. Expenses and Losses - The net loss for the nine months ended December 31, 2022, was approximately HKD 9.8 million, compared to a net loss of about HKD 5.3 million in 2021, primarily due to increased foreign exchange losses and fair value losses on financial assets[22]. - Employee benefits expenses increased by approximately HKD 1.7 million to about HKD 9.5 million for the nine months ended December 31, 2022, due to salary payments in China and increased compensation for Hong Kong employees[19]. - Other expenses rose from approximately HKD 7.5 million in 2021 to about HKD 8.4 million in 2022, with a net foreign exchange loss of approximately HKD 3.2 million recorded in 2022 compared to HKD 0.9 million in 2021[20]. - The total comprehensive loss for the nine months ended December 31, 2022, was HKD 10,461,000, compared to a loss of HKD 5,616,000 for the same period in 2021, indicating an increase in losses of approximately 86.5%[24]. Market and Strategic Focus - The group continues to focus on expanding its services to the People's Republic of China and other potential overseas markets, having established a new company in Malaysia to provide educational consulting services[10]. - The group acknowledges that the local market may face limitations due to rising immigration rates and declining birth rates, necessitating exploration of opportunities in different markets[10]. - The group plans to enhance its digital marketing channels while also resuming more in-person interactions with universities and high schools to facilitate direct engagement with students and parents[8]. - The group anticipates that the business environment will take time to return to pre-COVID-19 levels, particularly due to inflation and high interest rates affecting the economy[10]. - The group remains confident that its performance will improve once external factors stabilize, despite ongoing challenges from the COVID-19 pandemic and global economic conditions[10]. Financial Position - The company reported a total equity of HKD 72,175,000 as of December 31, 2022, down from HKD 77,883,000 as of December 31, 2021, representing a decrease of approximately 7.3%[24]. - The company held financial assets valued at approximately HKD 8.5 million as of December 31, 2022, with a unit price of AUD 7.04[46]. - The company has no significant unrecognized deferred tax assets or liabilities as of December 31, 2022[41]. Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal controls, enhancing governance practices[59]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial results for the nine months ending December 31, 2022, ensuring compliance with applicable accounting standards[59]. - The company has adhered to all applicable provisions of the corporate governance code as per GEM Listing Rules Appendix 15[53]. - The company confirmed compliance with the minimum public float requirement of 25%[55]. - There are no competing interests reported by major shareholders or directors in businesses that directly or indirectly compete with the company's operations[56]. Shareholder Information - As of December 31, 2022, the major shareholder, Hong Yong, holds 892,710,000 shares, representing 51% of the total shares[51]. - The weighted average number of ordinary shares for the nine months ended December 31, 2022, was 1,750,400,000 shares, unchanged from the previous year[43]. - The company has a beneficial owner, Mr. Zhong, who holds 1 share with a 100% beneficial ownership[50]. Other Financial Information - The company reported financing costs of HKD 138,000 for the nine months ended December 31, 2022, compared to HKD 120,000 in the same period of 2021, indicating an increase of 15%[37]. - Bank interest income increased significantly to HKD 609,000 for the nine months ended December 31, 2022, compared to HKD 195,000 in the same period of 2021, reflecting a growth of approximately 212.3%[36]. - The company did not declare an interim dividend for the nine months ended December 31, 2022, consistent with the previous year[42]. - The company has not applied any new or revised standards that have not yet come into effect, and is currently assessing their potential impact on its financial performance[29]. - No significant events affecting the company occurred after December 31, 2022, up to the report date[47]. - No stock options have been granted under the stock option plan adopted on January 17, 2017, and there are no unexercised stock options as of December 31, 2022[57].
大地教育(08417) - 2023 Q3 - 季度财报