Financial Performance - The group's revenue for the twelve months ended December 31, 2023, was approximately HKD 178.3 million, compared to HKD 164.8 million for the same period last year, representing an increase of about 8.9%[4] - The loss attributable to shareholders for the same period was approximately HKD 12.7 million, a significant improvement from a loss of HKD 37.2 million in the previous year, indicating a reduction of approximately 65.8%[4] - The basic loss per share for the twelve months was approximately HKD 1.98, compared to HKD 8.13 for the same period last year, reflecting a decrease of about 75.6%[4] - Total comprehensive loss for the period was HKD 10.16 million, compared to a loss of HKD 19.68 million in the previous year, showing an improvement of approximately 48.7%[6] - The company reported a net loss of HKD 9.46 million for the twelve months, down from HKD 36.8 million in the previous year, reflecting a reduction of approximately 74.3%[6] - The total loss before tax for the group was HKD 7,667,000, compared to a profit in the previous year, indicating a significant decline in profitability[24] - The company reported a total comprehensive loss of HKD 16,669,000 for the period, compared to a loss of HKD 18,758,000 in the previous year, indicating an improvement of about 11.6%[10] Revenue Breakdown - For the twelve months ended December 31, 2023, the total revenue of SDM Education Group was HKD 178,329,000, an increase of 8.14% compared to HKD 164,832,000 for the same period in 2022[22] - The revenue from the Dance Academy business was HKD 65,426,000, up from HKD 55,121,000, reflecting an increase of 18.67%[22] - The revenue from the Early Childhood Education business was HKD 101,398,000, slightly increasing from HKD 100,636,000, representing a growth of 0.76%[22] Expenses and Costs - The group reported a decrease in advertising and promotional expenses to HKD 8.26 million from HKD 5.07 million, an increase of approximately 62.5% year-on-year[5] - Employee and teaching consultancy service costs were HKD 114.33 million, slightly up from HKD 112.46 million, indicating a year-on-year increase of about 1.7%[5] - The group incurred total corporate expenses of HKD 33,342,000 during the reporting period[24] - The income tax expense for the twelve months ended December 31, 2023, was HKD 1,791,000, significantly higher than HKD 387,000 in 2022, reflecting a substantial increase in tax obligations[35] Asset and Liability Management - Non-current assets decreased from HKD 264,055,000 in 2022 to HKD 251,035,000 in 2023, a decline of approximately 4.9%[7] - Current assets increased from HKD 100,144,000 in 2022 to HKD 119,803,000 in 2023, an increase of about 19.7%[7] - Total liabilities decreased from HKD 513,904,000 in 2022 to HKD 516,880,000 in 2023, reflecting a slight increase of approximately 0.6%[8] - Cash and cash equivalents decreased from HKD 25,699,000 in 2022 to HKD 22,118,000 in 2023, a decrease of about 13.5%[12] - The company's equity attributable to owners decreased from HKD 245,022,000 in 2022 to HKD 235,530,000 in 2023, a decline of approximately 3.0%[8] - The total liabilities to equity ratio indicates a negative equity position of HKD 224,602,000 in 2023 compared to HKD 237,324,000 in 2022[8] Share Capital and Financing - The company issued 22,880,000 new shares, increasing the share capital to HKD 68,640,000[10] - The company issued convertible notes amounting to USD 25,000,000 (approximately HKD 195,400,000) with an annual interest rate of 8%[54] - The company’s total borrowings increased from HKD 46,412,000 to HKD 57,132,000, reflecting a growth of about 23.06%[52] - The company repaid USD 3,500,000 (approximately HKD 27,300,000) of the convertible notes, with an additional repayment of USD 160,000 (approximately HKD 1,250,000) as of December 31, 2023[55] Operational Highlights - Enrollment in Singapore's preschool institutions reached approximately 910 students, with a total capacity of 1,350 students, resulting in a utilization rate of 67%, up from 60% the previous year[67] - The group continues to expand its operations in Singapore and Australia, enhancing its brand recognition and reputation in the education market[65] - The company is actively seeking investment opportunities to expand its business in the dance academy sector, particularly in the Asian market[90] Corporate Governance - The company has complied with all corporate governance codes as per GEM listing rules, with no deviations reported during the twelve months ending December 31, 2023[112] - The audit committee, composed of independent non-executive directors, reviewed the unaudited consolidated results for the twelve months ending December 31, 2023, and found no objections to the accounting policies adopted[116] - There were no conflicts of interest reported among directors or major shareholders during the reporting period[109] Future Outlook - The group plans to change its financial year-end from December 31 to June 30, which may impact future reporting periods[5] - The company plans to allocate approximately HKD 2,500,000 for expanding its dance academy business and HKD 5,000,000 for general corporate and operational expenses[84]
SDM教育(08363) - 2023 - 中期财报