Business Expansion and Operations - The group opened 23 wholly-owned dance centers in Hong Kong in 2022 to enhance its competitive advantage[7] - The group operates 14 preschool institutions in Singapore as of the end of 2022, following acquisitions since June 2018[7] - The company plans to open or acquire more dance centers in densely populated residential areas in Hong Kong to strengthen its market position[10] - A new dance center is planned to be opened in Kai Tak by the end of 2023 or the first quarter of 2024[10] - The company will continue to offer online dance classes as an alternative to in-person sessions[10] - The group is actively seeking new business opportunities to diversify its operations and enhance long-term growth potential[10] - The company aims to accelerate its expansion into overseas markets to broaden its revenue sources[10] - The group is considering potential acquisition opportunities and partnerships to maximize long-term returns for shareholders[10] - The group plans to expand its business in the dance school industry in Hong Kong and Asia, actively seeking investment opportunities since 2018[34] - The group has been involved in acquiring several preschool institutions in Singapore and educational businesses in Australia since 2019[34] Financial Performance - Total revenue decreased from approximately HKD 178.6 million in 2021 to about HKD 164.8 million in 2022, a reduction of approximately 7.7%[18] - Revenue from the dance academy business in Hong Kong dropped to around HKD 19.4 million in 2022 due to the closure of dance centers for several months because of COVID-19[18] - Other income increased to approximately HKD 55.1 million in 2022 from HKD 51.7 million in 2021, primarily due to government subsidies and rental reductions related to COVID-19[19] - The group recorded a loss attributable to shareholders of approximately HKD 37.2 million in 2022, compared to a profit of about HKD 49.4 million in 2021, largely due to the absence of fair value gains on contingent consideration[19] - The group terminated its operations in Australia in April 2021, resulting in zero revenue from that segment in 2022, down from HKD 6.2 million in 2021[20] Assets and Liabilities - The carrying amount of goodwill and intangible assets as of December 31, 2022, was HKD 84.7 million and HKD 63 million, respectively, reflecting a decrease from the previous year[22] - The average projected revenue growth rate for the cash-generating unit under Singapore's early childhood education was adjusted down to 3% for the next five years, from 7% in the previous year[22] - Goodwill and intangible assets arising from the acquisition of Singapore's childcare business amounted to HKD 115.3 million, representing 78% of the group's total[23] - As of December 31, 2022, the group's total cash and bank balances were approximately HKD 25.7 million, down from HKD 29.5 million in 2021[25] - The group had bank and other borrowings amounting to approximately HKD 46.4 million, with HKD 41.6 million classified as current liabilities[25] Corporate Governance - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring a diverse governance structure[47] - The company has adopted a board diversity policy, considering various measurable aspects such as gender, age, and professional experience to enhance board performance[54] - The attendance rate for board meetings in 2022 was 100% for all directors, indicating strong engagement and commitment to governance[64] - The company has implemented a share option scheme to attract and retain qualified employees based on performance and contributions[41] - The board is committed to high standards of corporate governance, adhering to the GEM Listing Rules and continuously reviewing governance practices[44] Sustainability and Environmental Performance - The company focuses on enhancing information collection to improve environmental performance and sustainability disclosures[95] - The report emphasizes the importance of stakeholder communication and aims to balance shareholder interests with social benefits[96] - The company has established a Sustainability Committee to manage and monitor sustainability performance and implement improvement processes[99] - The report includes an assessment of significant environmental, social, and governance issues relevant to the company's operations[101] - The company evaluates climate-related risks and opportunities as part of its governance framework[98] Employee and Labor Practices - The total number of employees as of December 31, 2022, is 564, an increase from 462 in 2021, with 95.9% being female[130] - The overall employee turnover rate for 2022 is 27.9%, with a significantly higher rate of 55.4% in Hong Kong compared to 5.1% in Singapore[134] - 54.7% of employees received training during the year, totaling 2,368 hours of training provided[137] - The company maintains a zero injury and fatality rate over the past three years, with no work-related injuries reported during the reporting period[136] - The company emphasizes internal promotions, with a policy to consider internal candidates before hiring externally[131] Shareholder Communication and Dividends - The company has set up multiple channels for communication with shareholders and investors, including annual general meetings and a dedicated website[92] - The dividend policy allows for cash or other appropriate means of distribution to shareholders, subject to board recommendations and shareholder approval[91] - The company did not recommend the distribution of a final dividend for the year ended December 31, 2022, consistent with the previous year[178] - The board will continue to review the company's financial position and capital needs annually to determine future dividend recommendations[179] Stock Options and Share Issuance - The company has granted a total of 29,710,000 and 26,730,000 share options under the share option scheme as of December 31, 2022, and the report date respectively[184] - The maximum number of shares that can be issued upon the exercise of all options granted under the share option scheme is capped at 10% of the total issued shares immediately after the completion of the company's share listing[187] - The stock options can be exercised at any time within 10 years from the date of grant, subject to the terms of the stock option plan[193] - The company has not provided any preferential rights for existing shareholders regarding the issuance of new shares[197]
SDM教育(08363) - 2022 - 年度财报