Financial Performance - For the nine months ended September 30, 2023, the group's revenue was approximately HKD 132,200,000, an increase of 18.5% compared to HKD 111,500,000 for the same period in 2022[2] - The loss attributable to shareholders for the nine months ended September 30, 2023, was approximately HKD 4,700,000, a significant improvement from a loss of approximately HKD 10,100,000 in the same period last year[2] - The basic loss per share for the nine months ended September 30, 2023, was approximately HKD 0.75, compared to HKD 2.20 for the same period in 2022, reflecting a reduction of 65.9%[2] - For the three months ended September 30, 2023, the group's revenue was HKD 43,217,000, slightly up from HKD 42,333,000 in the same period of 2022[3] - The total comprehensive loss for the nine months ended September 30, 2023, was HKD 4,824,000, compared to a loss of HKD 2,295,000 in the same period of 2022[5] - The group reported a loss before tax of HKD 1,974,000 for the nine months ended September 30, 2023, compared to a loss of HKD 10,461,000 in the same period of 2022[3] Revenue Breakdown - The revenue from the Early Childhood Education business for the nine months ended September 30, 2023, was HKD 74,529,000, a slight increase from HKD 73,448,000 in the same period of 2022, representing a growth of 1.5%[14] - For the three months ended September 30, 2023, the revenue from the Dance Academy business was HKD 17,053,000, an increase of 20.5% compared to HKD 14,117,000 in the same period of 2022[14] - The group’s revenue from Hong Kong for the nine months ended September 30, 2023, was HKD 67,084,000, an increase of 46.3% from HKD 45,899,000 in the same period of 2022[22] - The group’s revenue from Singapore for the nine months ended September 30, 2023, was HKD 65,178,000, a slight decrease of 0.7% from HKD 65,648,000 in the same period of 2022[22] Costs and Expenses - Other income for the nine months ended September 30, 2023, was HKD 38,224,000, down from HKD 44,551,000 in the same period of 2022, representing a decrease of 14.2%[3] - The group incurred financing costs of HKD 3,845,000 for the nine months ended September 30, 2023, down from HKD 5,976,000 in the same period of 2022, indicating a reduction of 35.7%[3] - Interest expenses for borrowings for the nine months ended September 30, 2023, were HKD 1,234,000, down 43.3% from HKD 2,173,000 in the same period of 2022[24] - Employee and teaching consultancy service costs increased by approximately 6% to about HKD 87,000,000 during the reporting period[39] - Other operating expenses rose by approximately 23% to about HKD 29,400,000 compared to HKD 23,800,000 in the same period last year[39] Government Grants and Support - The group received government grants totaling HKD 4,730,000 for the nine months ended September 30, 2023, compared to HKD 3,186,000 in the same period of 2022, indicating a significant increase of 48.5%[18] Corporate Governance and Compliance - The company has not declared or recommended any dividends for the nine months ended September 30, 2023[31] - The company has adhered to the corporate governance code as per GEM listing rules, with no deviations reported as of September 30, 2023[74] - The audit committee, composed of independent non-executive directors, reviewed the group's accounting principles and practices without any objections regarding the unaudited consolidated results for the nine months ended September 30, 2023[78] Share Capital and Ownership - As of September 30, 2023, the company's issued share capital increased to HKD 68,640,000, comprising 686,400,000 shares following a rights issue[45] - Wealthy Together holds 298,125,000 shares, representing 43.43% of the company's issued share capital[60] - Xu Peixiang holds 39,980,000 shares, accounting for 5.82% of the company's issued share capital[60] - The company’s total authorized share capital is HKD 800,000,000, divided into 8,000,000,000 shares with a par value of HKD 0.1 each[45] Investment and Expansion Plans - The company aims to expand its presence in the education markets of Singapore and Australia[35] - The company is actively seeking investment opportunities to expand its dance school business in Hong Kong and overseas markets, particularly in Asia[51] - The board believes that the acquisition opportunities align with the company's business development and expansion plans, providing a strong platform for growth[51] Stock Options and Employee Incentives - The company has a stock option plan that allows for the issuance of up to 10% of the total issued shares, which is capped at 20,000,000 shares[63] - The stock option plan was adopted on September 26, 2014, and has undergone updates approved by shareholders in May 2019 and December 2019, allowing for a total of 35,410,000 shares to be issued under the plan[65][66] - The company is committed to recognizing and rewarding contributions from directors and employees through its stock option plan[63] - As of September 30, 2023, the company has 27,325,892 unexercised share options under the share option plan, with a total of 41,110,000 shares available for issuance, representing 5.99% of the 686,400,000 shares issued as of the report date[69][70] Legal and Regulatory Matters - The company has not yet applied new accounting standards that have been issued but are not yet effective, and is currently assessing their potential impact on operational performance and financial position[10] - The company’s legal advisors have confirmed that there have been no default events related to the convertible bonds, despite attempts by bondholders to appoint receivers[43][47] - As of September 30, 2023, the company has no significant contingent liabilities[54] - During the reporting period, no directors or controlling shareholders had any business interests that could compete with the company's operations[71] Other Notable Information - The company operates 23 wholly-owned dance centers in Hong Kong and 13 preschool institutions in Singapore as of September 30, 2023[35] - No significant acquisitions or major investments were reported during the period[48][49] - There were no purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries during the reporting period[76]
SDM教育(08363) - 2023 Q3 - 季度财报