BExcellent Group recorded revenue of HK$141.8 million in FY2022
- Written by The Bulletin
Acquires approximately 51.0% equity of a local adult education service company
HONG KONG SAR - Media OutReach - 25 October 2022 - BExcellent Group Holdings Limited ("BExcellent Group" or the "Company", together with its subsidiaries, the "Group"; stock code: 1775.HK) announced its annual results for the year ended 31 July 2022 ("Financial Year").During the Financial Year under review, the Group recorded revenue of HK$141,829,000. Despite the fluctuant situation of COVID-19 pandemic in the year, the Group was able to reduce the loss before taxation by 15.5% to HK$24,325,000 and the cash and cash equivalents of the Group increased to HK$103,900,000.
BUSINESS REVIEW
Private supplementary secondary school education services
The Group provides private supplementary secondary school education services for students from Secondary 1 to Secondary 6 under "Beacon College" brand. The revenue derived from private supplementary secondary school education services was HK$113,942,000 for the year ended 31 July 2022 and the number of session enrollment was 179,000.
Due to the worsening of the fifth wave of COVID-19 pandemic in Hong Kong in late 2021 and early 2022, the number of new confirmed cases in Hong Kong reached a historic high and the Hong Kong government implemented disease prevention measure such as suspending face-to-face classes, which affected the overall number of session enrollments during the year.
Private secondary day school services
As at 31 July 2022, the Group operated two private secondary day schools located respectively in Yuen Long and Mong Kok under "Beacon Day School" brand.
Due to the increase of the number of private secondary day school unique student enrollments, the revenue derived from private secondary day school services was increased by 9.4% from HK$8,026,000 for the year ended 31 July 2021 to HK$8,784,000.
Ancillary education services and products
The Group offers various ancillary education services and products such as (i) IELTS and foreign language courses under "Beacon BExcellent" brand; (ii) mock examination services; (iii) education services to schools, tutorial and consultation services, interview preparation, language and supplementary primary school education, under our "Diverse Learning Club", "Beacon Childhood", "BeConfident", "Glocal Education" and "Mathgic" brands, etc.
During the Financial Year under review, the total revenue derived from ancillary education services and products was HK$19,103,000 and the total number of session enrollment was 12,000. The ancillary education services and products are detailed as follows:
(i) Beacon BExcellent is the largest revenue contributor of our ancillary education services and products during the year. The demand for overseas study, migration, continuing education and training provided strong momentum for the demand of IELTS courses. The revenue of Beacon BExcellent was HK$5,468,000 for the year ended 31 July 2022.
(ii) For the Financial Year under review, the revenue from mock examinations services was HK$3,942,000.
(iii) Revenue from childhood education and school services was HK$3,174,000 for the year ended 31 July 2022. The Group was in the process of restructuring the childhood education services and streamlining the operation of our childhood education teaching centres.
(iv) The organic growth on revenue arising from our HKDSE school services to various secondary schools, our online course platform namely CourseZ as well as our education services offered in mainland China resulted in a significant increase in the revenue for other services and products by 27.1% to HK$5,666,000.
OUTLOOK AND FUTURE DEVELOPMENTS
Looking ahead, The Group believes that the previous investment in the information technology for online learning has equipped the Group to surf in the wave of learning behavior change, which have created a broader market for our private supplementary secondary school education services.
To maintain the leading position in the Hong Kong private education market, the Group will continue (i) strengthening the teaching team by recruiting and retaining high calibers in the teaching force; (ii) optimizing our network of teaching centres for cost efficiency and even better classroom ultilisation; and (iii) further expanding the provision of education services to primary and secondary schools.
During the second half of the Financial Year under review, the Group has been providing teaching services to a HKDSE programme in an international school in Shenzhen, which earmarked a successful model of the extension of the Group's education expertise from Hong Kong to the Greater Bay Area of mainland China. With this track record, the Group is optimistic to expand the development of the full spectrum of education services in mainland China when sound opportunity arises, and believe the strong position in the Hong Kong HKDSE education market will enable the Group to benefit from the prominent international education market growth in mainland China in the coming years.
Acquisition of a local adult education service company
On the same day, the Group announced that Beacon Holdings Limited, an indirect wholly-owned subsidiary of the Group has entered into a Share Purchase Agreement with Ottorino Consultants (International) Limited to acquire approximately 51.0% of its equity. Upon completion of the transaction, it will become a non wholly-owned subsidiary of the Group.
The total amount of the consideration for the Sale Shares is approximately HK$6.37 million, which includes HK$3.19 million is payable in cash. After the completion date, the balance will be paid off with 3,984,000 Consideration Shares at HK$0.8 per share, representing approximately 0.8% of the number of issued Shares.
Ottorino Consultants (International) Limited is principally engaged in the provision of educational services in Hong Kong, which include those relating top-up degrees, professional or vocational training, on-the-job English training, professional examination courses and other professional courses, and academic, interest and activity-based classes, in different industry disciplines under the business name of "1% Group Education".
Ms. Leung Ho Ki, June, Chairman of the Group, said, "The COVID-19 pandemic continued to rage over the past year, and the local business market and even the education market still faced a severe situation. However, with the efforts of the Group's employees and the gradual control of the epidemic, the cash flow of the Group has been strengthened which helps the Group to invest in different businesses, including exploring different potential acquisition and cooperation opportunities to enhance our core competitiveness and seize the opportunities arising locally and internationally. Education never fades and we hope that more and more people will leave the mark of 'Bexcellent' in different life stages"
Hashtag: #BExcellentGroup
The issuer is solely responsible for the content of this announcement.
About BExcellent Group Holdings Limited
BExcellent Group Holdings Limited ("BExcellent Group") is a leading provider of private supplementary secondary school education services in Hong Kong, particularly in providing private supplementary secondary school education services and a series of ancillary education services and products, and operating private secondary day schools in Hong Kong. The education brands of the Group include "Beacon College", "Beacon Day School", and "Beacon Childhood", etc. Furthermore, the Group has developed international education services for schools and has successfully commenced education programme in the Greater Bay Area. As at 31 July 2022, the Group operated 9 teaching centres, with a total of 72 classrooms, which, in accordance with the EDB's guidelines, allow a maximum classroom capacity of 2,143 students to attend class at any one time.
