Financial Performance - The group's revenue for the six months ended June 30, 2022, was approximately HKD 69,200,000, a decrease of 24.5% compared to HKD 91,600,000 in the same period last year[3]. - The loss attributable to shareholders for the six months was approximately HKD 15,500,000, compared to a profit of HKD 86,000,000 in the previous year[3]. - Basic loss per share for the period was approximately HKD 3.40, compared to basic earnings of HKD 22.35 per share in the same period last year[6]. - Total comprehensive loss for the period amounted to HKD 7,728,000, a significant decline from a total comprehensive income of HKD 88,491,000 in the previous year[6]. - The total loss before tax for the group was HKD 14,073,000 for the six months ended June 30, 2022[26]. - The company reported a total comprehensive loss of HKD 7,804,000 for the six months ended June 30, 2022, compared to a total comprehensive income of HKD 88,033,000 for the same period in 2021[10]. - The group recorded a loss attributable to owners of approximately HKD 14,100,000, compared to a profit of about HKD 86,000,000 in the same period last year[69]. Assets and Liabilities - Non-current assets as of June 30, 2022, totaled HKD 274,006,000, down from HKD 293,301,000 as of December 31, 2021[7]. - Current assets were HKD 92,861,000, slightly decreased from HKD 93,142,000 at the end of the previous year[7]. - The group's total liabilities amounted to HKD 506,328,000, compared to HKD 505,991,000 in the previous year[7]. - As of June 30, 2022, the total equity attributable to owners of the company was HKD (234,398,000), compared to HKD (226,814,000) at the end of 2021[10]. - The company’s non-current liabilities increased from HKD 86,237,000 as of June 30, 2021, to HKD 98,642,000 as of December 31, 2022[8]. - The company’s total liabilities increased from HKD 225,698,000 as of June 30, 2021, to HKD 218,190,000 as of December 31, 2022[8]. Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was HKD 17,638,000, a decrease of 62.7% compared to HKD 47,251,000 for the same period in 2021[12]. - The net cash used in investing activities was HKD 1,208,000, significantly improved from HKD 18,505,000 in the previous year[12]. - The net cash used in financing activities was HKD 12,324,000, a decrease of 73.7% compared to HKD 46,882,000 in the prior year[12]. - The cash and cash equivalents decreased by HKD 4,106,000, compared to a decrease of HKD 18,136,000 in the previous year[12]. - As of June 30, 2022, the group had cash and bank balances totaling approximately HKD 24,200,000, down from HKD 29,500,000 as of December 31, 2021[78]. - The group had bank and other borrowings of HKD 34,800,000 as of June 30, 2022, compared to HKD 49,300,000 as of December 31, 2021[78]. Revenue Breakdown - The total revenue for the six months ended June 30, 2022, was HKD 69,214,000, a decrease of 24.5% compared to HKD 91,640,000 for the same period in 2021[26]. - The dance academy business generated revenue of HKD 17,000,000, down 50.8% from HKD 34,599,000 in the previous year[26]. - The early childhood education business reported revenue of HKD 48,096,000, an increase of 5.5% from HKD 45,670,000 in the prior year[26]. - Revenue from the dance academy business in Hong Kong fell from about HKD 34,600,000 to approximately HKD 17,000,000, a decrease of about HKD 17,600,000 or 51%[67]. Other Income and Expenses - The group reported a significant increase in other income to HKD 22,201,000 for the six months, up from HKD 17,975,000 in the previous year[4]. - The group reported a total of HKD 4,231,000 in other income, other gains, and losses for the six months ended June 30, 2022[26]. - Employee and teaching consultancy service costs decreased by about 15% to approximately HKD 51,400,000 from HKD 60,800,000[67]. - Rental income from related parties for the six months ended June 30, 2022, was HKD 701,000, down from HKD 1,446,000 in the previous year[59]. Corporate Governance and Compliance - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2022, and found no objections to the accounting treatment adopted by the company[111]. - The company has adhered to all corporate governance codes as per GEM listing rules without any deviations during the reporting period[107]. - There were no conflicts of interest reported among directors or major shareholders during the reporting period[105]. - The company received written confirmations from major shareholders regarding compliance with non-competition agreements as of December 31, 2021[106]. Business Operations and Strategy - The company operates in the fields of dance education and early childhood education, with significant operations in Hong Kong and Singapore[14]. - The company has accelerated its expansion in the education markets of Singapore and Australia in recent years[62]. - The group is optimistic about the Australian education market and plans to explore opportunities for future business expansion once travel restrictions are lifted[66]. - The board is actively seeking investment opportunities to expand its dance school business in Asia and other international markets[89]. - The company is exploring suitable opportunities for business expansion in Hong Kong, mainland China, and overseas markets[90]. Share Capital and Securities - As of June 30, 2022, the company's issued share capital was HKD 45,760,000, divided into 457,600,000 shares with a par value of HKD 0.1 each[94]. - The company issued convertible bonds with a principal amount of USD 25,000,000 (approximately HKD 195,400,000) at an annual interest rate of 8%, maturing in 2023[54]. - The company had outstanding convertible bonds with a face value of approximately HKD 275,400,000 as of June 30, 2022, down from HKD 281,800,000 in the previous year[82]. - The company has a stock option plan that allows for the issuance of up to 10% of the total issued shares post-IPO, which amounts to a maximum of 20,000,000 shares[98]. - The stock option plan was updated to allow for the issuance of up to 35,410,000 shares, representing 10% of the issued shares as of the date of the shareholder approval[99].
SDM教育(08363) - 2022 - 中期财报