EX-99.1 2 ea022244301ex99-1_bright.htm EARNINGS RELEASE

Exhibit 99.1

 

 

Bright Scholar Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2024

 

Gross Profit from continuing operations increased 7.7% YoY and gross margin from continuing operations grew 2.3 ppts for fiscal year 2024

Management to hold a conference call today at 7:00 a.m. Eastern Time

 

CAMBRIDGE, England and FOSHAN, China, November 25, 2024 /PRNewswire/—Bright Scholar Education Holdings Limited (“Bright Scholar,” the “Company,” “we” or “our”) (NYSE: BEDU), a global premier education service company, today announced its unaudited financial results for its fourth quarter and fiscal year 2024 ended August 31, 2024.

 

FOURTH QUARTER OF FISCAL 2024 FINANCIAL HIGHLIGHTS

 

●Revenue from continuing operations was RMB358.3 million, compared to RMB442.2 million for the same quarter last fiscal year.

 

●Revenue from Overseas Schools was RMB185.1 million, representing a 0.2% increase from RMB184.8 million for the same quarter last fiscal year.

 

●Loss from continuing operations was RMB954.8 million, compared to RMB285.1 million for the same quarter last fiscal year. Adjusted net loss1 narrowed by 24.3% to RMB92.0 million from RMB121.4 million for the same quarter last fiscal year.

 

Revenue from continuing operations by Segment

 

   For the fourth quarter ended
August 31,		   YoY    % of total revenue in  
(RMB in millions except for percentage)  2024   2023   % Change   F4Q2024 
Overseas Schools   185.1    184.8    0.2%   51.7%
Complementary Education Services2   129.8    161.7    -19.7%   36.2%
Domestic Kindergartens & K-12 Operation Services3   43.4    95.7    -54.7%   12.1%
Total   358.3    442.2    -19.0%   100.0%

 

 

1.Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax.
2.The Complementary Education Services business comprises, overseas study counselling, art training, camps and others.
3.The Domestic Kindergartens & K-12 Operation Services business comprises operation services for students of domestic K-12 schools, including catering and procurement services. For more information on these adjusted financial measures, please see the section captioned “Non-GAAP Financial Measures” and the tables captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this release.

 

 

 

 

 

FISCAL YEAR 2024 FINANCIAL HIGHLIGHTS

 

●Revenue from continuing operations was RMB1,755.2 million, compared to RMB1,772.1 million for the last fiscal year.

 

●Revenue from Overseas Schools was RMB951.2 million, representing an increase of 17.5% from the last fiscal year.

 

●Gross profit from continuing operations was RMB503.6 million, representing an increase of 7.7% from RMB467.4 million for the last fiscal year. Gross margin from continuing operations increased to 28.7% from 26.4% for the last fiscal year.

 

●Loss from continuing operations was RMB869.1 million, compared to RMB358.9 million for the last fiscal year. Adjusted net income was RMB1.1 million, compared to adjusted net loss of RMB192.6 for the last fiscal year.

 

Revenue from continuing operations by Segment

 

   For the fiscal year ended
August 31,		   YoY    % of total revenue in 
(RMB in millions except for percentage)    2024   2023   % Change   FY24 
Overseas Schools   951.2    809.5    17.5%   54.2%
Complementary Education Services   495.1    519.2    -4.7%   28.2%
Domestic Kindergartens & K-12 Operation Services   308.9    443.4    -30.3%   17.6%
Total   1,755.2    1,772.1    -1.0%   100.0%

 

MANAGEMENT COMMENTARY

 

Mr. Robert Niu, Chief Executive Officer of Bright Scholar, commented, “Throughout the year, we bolstered our global business and operations, strengthening our foundation for future advancement. Despite macro challenges, we achieved rapid progress in our overseas business while further enhancing our senior leadership team to help advance our near-term expansion goals in overseas markets. Our Overseas Schools business maintained its double-digit year-over-year revenue growth for the fiscal year. As we focused our resources on strengthening our high-growth core business, we have completed divesting non-core business from our Complementary Education Services segment by the end of the fiscal quarter. Moving into fiscal year 2025, we plan to reinforce our “dual-engine” growth strategy by focusing on the continued expansion of our overseas school business while propelling our global recruitment initiatives for prospective international students. We are well-positioned to drive further expansion and capture more of the sizeable market opportunities that will support our sustainable development over the long term.”

 

Ms. Cindy Zhang, Chief Financial Officer of Bright Scholar, added, “Ongoing development across our core businesses drove our healthy financial results for the fiscal year. Our total revenues for fiscal year 2024 remained stable year over year, with Overseas Schools revenue increasing by 18%. We continued to streamline our operations and improve operational efficiency. Notably, our gross profit increased by 7.7% and gross margin by 2.3 percentage points year-over-year. Meanwhile, we significantly enhanced our cash position, increasing our cash and cash equivalents and restricted cash by 20% for the fiscal year. Looking ahead, supported by our healthy balance sheet and the effective implementation of our “dual-engine” growth strategy, we are confident we can solidify our competitive edge while also driving long-term growth and profitability.”

 

2

 

 

 

UNAUDITED FINANCIAL RESULTS for THE fourth FISCAL QUARTER ENDED august 31, 2024

 

Revenue from Continuing Operations

 

Revenue was RMB358.3 million, compared to RMB442.2 million for the same quarter last fiscal year.

 

Overseas Schools: Revenue contribution was RMB185.1 million, representing a 0.2% increase from RMB184.8 million for the same quarter last fiscal year.

 

Complementary Education Services: Revenue contribution was RMB129.8 million, compared to RMB161.7 million for the same quarter last fiscal year. The decrease was mainly attributable to a reduction in extracurricular programs and study tours.

 

Domestic Kindergartens & K-12 Operation Services: Revenue contribution was RMB43.4 million, compared to RMB95.7 million for the same quarter last fiscal year.

 

Cost of Revenue from Continuing Operations

 

Cost of revenue was RMB322.4 million, or 90.0% of revenue, compared to RMB362.4 million, or 81.9%, for the same quarter last fiscal year.

 

Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations

 

Gross profit was RMB35.9 million, compared to RMB79.8 million for the same quarter last fiscal year. Gross margin was 10.0%, compared to 18.1% for the same quarter last fiscal year.

 

Adjusted gross profit4 was RMB36.9 million, compared to RMB80.9 million for the same quarter last fiscal year.

 

Selling, General and Administrative (SG&A) Expenses from Continuing Operations

 

Total SG&A expenses were RMB119.3 million, representing an 18.3% decrease from RMB146.0 million for the same quarter last fiscal year. This improvement was mainly due to our continuous efforts to streamline our operations and improve operational efficiency in our headquarters.

 

Operating Loss/Income, Operating Margin and Adjusted Operating Income from Continuing Operations

 

Operating loss was RMB941.8 million, compared to RMB227.6 million for the same quarter last fiscal year. Operating loss margin was 262.9%, compared to 51.5% for the same quarter last fiscal year.

 

Adjusted operating loss5 was RMB78.8 million, compared to RMB64.0 million for the same quarter last fiscal year.

 

Net Loss and Adjusted Net Income/Loss

 

Net loss was RMB1,004.7 million, compared to RMB340.3 million for the same quarter last fiscal year.

 

Adjusted net loss was RMB92.0 million, compared to RMB121.4 million for the same quarter last fiscal year.

 

 

4Adjusted gross profit from continuing operations is defined as gross profit from continuing operations excluding amortization of intangible assets.
5.Adjusted operating income/(loss) from continuing operations is defined as operating income/(loss) from continuing operations excluding share-based compensation expenses, amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, and impairment loss on the long-term investments.

 

3

 

 

 

Adjusted EBITDA6

 

Adjusted EBITDA loss was RMB81.8 million, compared to RMB55.0 million for the same quarter last fiscal year.

 

Net Loss per Ordinary Share/ADS and Adjusted Net Earnings/Loss per Ordinary Share/ADS

 

Basic and diluted net loss per ordinary share attributable to ordinary shareholders from continuing operations were RMB7.90 each, compared to RMB2.41 each for the same quarter last fiscal year.

 

Basic and diluted net loss per ordinary share attributable to ordinary shareholders from discontinued operations were RMB0.42 each, compared to RMB0.50 each for the same quarter last fiscal year.

 

Adjusted basic and diluted net loss per ordinary share7 attributable to ordinary shareholders were RMB0.75 each, compared to RMB1.03 each for the same quarter last fiscal year.

 

Basic and diluted net loss per ADS attributable to ADS holders from continuing operations were RMB31.60 each, compared to RMB9.64 each for the same quarter last fiscal year.

 

Basic and diluted net loss per ADS attributable to ADS holders from discontinued operations were RMB1.68 each, compared to RMB2.00 each for the same quarter last fiscal year.

 

Adjusted basic and diluted net loss per ADS8 attributable to ADS holders were RMB3.00 each, compared to RMB4.12 each for the same quarter last fiscal year.

 

UNAUDITED FINANCIAL RESULTS for THE FISCAL Year ENDED august 31, 2024

 

Revenue from Continuing Operations

 

Revenue was RMB1,755.2 million, compared to RMB1,772.1 million for the last fiscal year.

 

Overseas Schools: Revenue contribution was RMB951.2 million, representing a 17.5% increase from RMB809.5 million for the last fiscal year. The increase was mainly attributable to increases in both the number of students enrolled and the average tuition fees of overseas schools.

 

Complementary Education Services: Revenue contribution was RMB495.1 million, compared to RMB519.2 million for the last fiscal year. The decrease was mainly attributable to a reduction in extracurricular programs and study tours.

 

Domestic Kindergartens & K-12 Operation Services: Revenue contribution was RMB308.9 million, compared to RMB443.4 million for the last fiscal year.

 

 

6.Adjusted EBITDA is defined as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit, depreciation and amortization, share-based compensation expenses, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax.
7Adjusted basic and diluted earnings/(loss) per share is defined as adjusted net income/(loss) attributable to ordinary shareholders (net income/(loss) attributable to ordinary shareholders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ordinary shares.
8.Adjusted basic and diluted earnings/(loss) per American Depositary Share (“ADS”) is defined as adjusted net income/(loss) attributable to ADS shareholders (net income/(loss) attributable to ADS shareholders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ADSs.

 

4

 

 

 

Cost of Revenue from Continuing Operations

 

Cost of revenue was RMB1,251.6 million, or 71.3% of revenue, compared to RMB1,304.7 million, or 73.6%, for the last fiscal year. The improvement was mainly attributable to cost-saving measures.

 

Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations

 

Gross profit was RMB503.6 million, representing a 7.7% increase from RMB467.4 million for the last fiscal year. The increase was mainly attributable to the revenue growth in Overseas Schools. Gross margin increased to 28.7% from 26.4% for the last fiscal year.

 

Adjusted gross profit was RMB507.8 million, representing a 7.6% increase from RMB471.8 million for the last fiscal year.

 

Selling, General and Administrative (SG&A) Expenses from Continuing Operations

 

Total SG&A expenses were RMB469.0 million, representing an 8.1% decrease from RMB510.3 million for the last fiscal year. This improvement was mainly due to our continuous efforts to streamline our global operations and improve operational efficiency in our headquarters.

 

Operating Loss/Income, Operating Margin and Adjusted Operating Income from Continuing Operations

 

Operating loss was RMB820.4 million, compared to RMB161.7 million for the last fiscal year. Operating loss margin was 46.7%, compared to 9.1% for the last fiscal year.

 

Adjusted operating income increased by 856.3% to RMB50.5 million, from RMB5.3 million for the last fiscal year.

 

Net Loss and Adjusted Net Income/Loss

 

Net loss was RMB1,032.9 million, compared to RMB386.8 million for the last fiscal year.

 

Adjusted net income was RMB1.1 million, compared to adjusted net loss of RMB192.6 million for the last fiscal year.

 

Adjusted EBITDA

 

Adjusted EBITDA increased by 44.1% to RMB80.7 million, from RMB56.0 million for the last fiscal year.

 

Net Loss per Ordinary Share/ADS and Adjusted Net Earnings/Loss per Ordinary Share/ADS

 

Basic and diluted net loss per ordinary share from continuing operations attributable to ordinary shareholders were RMB7.18 each, compared to RMB3.03 each for the last fiscal year.

 

Basic and diluted net loss per ordinary share from discontinued operations attributable to ordinary shareholders were RMB1.22 each, compared to RMB0.30 each for the last fiscal year.

 

Adjusted basic and diluted net income per ordinary share attributable to ordinary shareholders were RMB0.04 each, compared to net loss per ordinary share attributable to ordinary shareholders of RMB1.63 each for the last fiscal year.

 

5

 

 

 

Basic and diluted net loss per ADS from continuing operations attributable to ADS holders were RMB28.72 each, compared to RMB12.12 each for the last fiscal year.

 

Basic and diluted net loss per ADS from discontinued operations attributable to ADS holders were RMB4.88 each, compared to RMB1.20 each for the last fiscal year.

 

Adjusted basic and diluted net income per ADS attributable to ADS holders were RMB0.16 each, compared to net loss per ADS attributable to ADS holders were RMB6.52 each for the last fiscal year.

 

Cash and Working Capital

 

As of August 31, 2024, the Company had cash and cash equivalents and restricted cash of RMB505.8 million (US$71.3 million), compared to RMB419.9 million as of August 31, 2023.

 

Conference Call

 

The Company’s management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong Time) on November 25, 2024.

 

Dial-in details for the earnings conference call are as follows:

 

Mainland China: 4001-201203
Hong Kong: 800-905945
United States: 1-888-346-8982
International: 1-412-902-4272

 

Participants should dial in at least 5 minutes before the scheduled start time and ask to be connected to the call for “Bright Scholar Education Holdings Limited.”

 

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.brightscholar.com/.

 

A replay of the conference call will be accessible after the conclusion of the live call until December 2, 2024, by dialing the following telephone numbers:

 

United States Toll Free: 1-877-344-7529
International: 1-412-317-0088
Replay Passcode: 7352870

 

CONVENIENCE TRANSLATION

 

The Company’s reporting currency is Renminbi (“RMB”). However, periodic reports made to shareholders will include current period amounts translated into U.S. dollars using the prevailing exchange rates at the balance sheet date for the convenience of readers. Translations of balances in the condensed consolidated balance sheets, and the related condensed consolidated statements of operations, and cash flows from RMB into U.S. dollars as of and for the quarter ended August 30, 2024 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0900, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on August 30, 2024. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on August 30, 2024, or at any other rate.

 

6

 

 

 

NON-GAAP FINANCIAL MEASURES

 

In evaluating our business, we consider and use certain non-GAAP measures, including primarily adjusted EBITDA, adjusted net income/(loss), adjusted gross profit/(loss), adjusted operating income/(loss), adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders basic and diluted as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted gross profit/(loss) from continuing operations as gross profit/(loss) from continuing operations excluding amortization of intangible assets. We define adjusted EBITDA as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit, depreciation and amortization, share-based compensation expenses, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax. We define adjusted net income/(loss) as net income/(loss) excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax. We define adjusted operating income/(loss) from continuing operations as operating income/(loss) from continuing operations excluding share-based compensation expenses, amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets and impairment loss on the long-term investments. Additionally, we define adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted, as adjusted net income/(loss) attributable to ordinary shareholders/ADS holders (net income/(loss) to ordinary shareholders/ADS holders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets,, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ordinary shares or ADSs.

 

We incur amortization expense of intangible assets related to various acquisitions that have been made in recent years. These intangible assets are valued at the time of acquisition and are then amortized over a period of several years after the acquisition. We believe that exclusion of these expenses allows greater comparability of operating results that are consistent over time for the Company’s newly-acquired and long-held business as the related intangibles do not have significant connection to the growth of the business. Therefore, we provide exclusion of amortization of intangible assets to define adjusted gross profit from continuing operations, adjusted operating income/(loss) from continuing operations, adjusted net income/(loss), and adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted. In addition, the strategic move to dispose of the non-core businesses is viewed as discontinued operations, which is a non-recurring item. The exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we provide exclusion of income/(loss) from discontinued operations, net of tax, to define adjusted net income/(loss), adjusted EBITDA, adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted.

 

7

 

 

 

We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Such non-GAAP measures include adjusted EBITDA, adjusted net income/(loss), adjusted gross profit/(loss) from continuing operations, adjusted operating income/(loss) from continuing operations, adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders basic and diluted. Non-GAAP financial measures enable our management to assess our operating results without considering the impact of non-cash charges, including depreciation and amortization and share-based compensation expenses, and without considering the impact of non-operating items such as interest income/(expense), net; income tax expense/benefit; share-based compensation expenses; amortization of intangible assets, tax effect of amortization of intangible assets, and without considering the impact of non-recurring item, i.e. income/(loss) from discontinued operations. We also believe that the use of these non-GAAP measures facilitates investors’ assessment of our operating performance.

 

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Interest income/(expense), net; income tax expense/benefit; depreciation and amortization; share-based compensation expense; tax effect of amortization of intangible assets have been and may continue to be incurred in our business and are not reflected in the presentation of these non-GAAP measures, including adjusted EBITDA or adjusted net income/(loss). Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

 

8

 

 

 

About Bright Scholar Education Holdings Limited

 

Bright Scholar is a premier global education service Group. The Company primarily provides quality international education to global students and equips them with the critical academic foundation and skillsets necessary to succeed in the pursuit of higher education.

 

For more information, please visit: https://ir.brightscholar.com/.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company’s business plans and development, which can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

 

IR Contact:

 

Email: BEDU@thepiacentegroup.com

Phone: +86 (10) 6508-0677/ +1-212-481-2050

 

Media Contact:

 

Email: media@brightscholar.com

 

9

 

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

 

   As of 
   August 31,   August 31, 
   2023   2024 
   RMB   RMB   USD 
             
ASSETS            
Current assets            
Cash and cash equivalents   410,086    493,377    69,588 
Restricted cash   9,521    12,167    1,716 
Accounts receivable, net   13,800    18,793    2,651 
Amounts due from related parties, net   183,468    14,417    2,033 
Other receivables, deposits and other assets, net   116,807    123,860    17,470 
Inventories   1,183    1,160    164 
Current assets belong to discontinued operations   192,534    -    - 
                
Total current assets   927,399    663,774    93,622 
                
Restricted cash - non-current   250    250    35 
Property and equipment, net   390,006    349,349    49,273 
Intangible assets, net   310,022    49,598    6,995 
Goodwill, net   1,110,802    527,297    74,372 
Long-term investments, net   32,732    24,421    3,444 
Prepayments for construction contracts   1,712 328    46      
Deferred tax assets, net   1,644    1,920    271 
Other non-current assets, net   9,424    9,106    1,284 
Operating lease right-of-use assets - non current   1,490,009    1,419,406    200,198 
Non-current assets belong to discontinued operations   345,510    -    - 
                
Total non-current assets   3,692,111    2,381,675    335,918 
                
TOTAL ASSETS   4,619,510    3,045,449    429,540 

 

10

 

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-CONTINUED

(Amounts in thousands)

 

   As of 
   August 31,   August 31, 
   2023   2024 
   RMB   RMB   USD 
LIABILITIES AND EQUITY            
Current liabilities            
Accounts payable   94,481    91,843    12,954 
Amounts due to related parties   244,259    78,365    11,053 
Accrued expenses and other current liabilities   233,053    191,222    26,971 
Income tax payable   88,460    78,986    11,140 
Contract liabilities - current   428,617    445,715    62,865 
Refund liabilities - current   10,129    9,872    1,392 
Operating lease liabilities - current   104,905    106,325    14,996 
Current liabilities belong to discontinued operations   276,499    -    - 
                
Total current liabilities   1,480,403    1,002,328    141,371 
Non-current contract liabilities   971    866    122 
Deferred tax liabilities, net   34,755    31,174    4,397 
Operating lease liabilities - non current   1,461,255    1,404,973    198,163 
Non-current liabilities belong to discontinued operations   70,470    -    - 
Total non-current liabilities   1,567,451    1,437,013    202,682 
                
TOTAL LIABILITIES   3,047,854    2,439,341    344,053 
                
EQUITY               
Share capital   8    8    1 
Additional paid-in capital   1,697,370    1,783,490    251,550 
Statutory reserves   20,155    16,535    2,332 
Accumulated other comprehensive income   172,230    191,397    26,995 
Accumulated deficit   (473,154)   (1,474,619)   (207,986)
                
Shareholders’ equity   1,416,609    516,811    72,892 
Non-controlling interests   155,047    89,297    12,595 
                
TOTAL EQUITY   1,571,656    606,108    85,487 
                
TOTAL LIABILITIES AND EQUITY   4,619,510    3,045,449    429,540 

 

11

 

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except for shares and per share data)

 

   Three Months Ended August 31   Year Ended August 31 
   2023   2024   2023   2024 
   RMB   RMB   USD   RMB   RMB   USD 
                         
Continuing operations                        
Revenue   442,187    358,271    50,532    1,772,127    1,755,206    247,561 
Cost of revenue   (362,354)   (322,407)   (45,473)   (1,304,699)   (1,251,620)   (176,533)
                               
Gross profit   79,833    35,864    5,059    467,428    503,586    71,028 
Selling, general and administrative expenses   (145,996)   (119,253)   (16,820)   (510,269)   (469,047)   (66,156)
Impairment loss on goodwill   (147,116)   (593,748)   (83,744)   (147,116)   (593,748)   (83,744)
Impairment loss on intangible assets   -    (258,326)   (36,435)   -    (258,326)   (36,435)
Impairment loss on property and equipment   (12,891)   (6,607)   (932)   (12,891)   (6,607)   (932)
Impairment loss on the long-term investments   (2,613)   -    -    (2,613)   -    - 
Other operating income   1,162    316    45    43,783    3,699    522 
Operating loss   (227,621)   (941,754)   (132,827)   (161,678)   (820,443)   (115,717)
Interest income/(expense), net   2,124    392    55    (5,452)   (1,315)   (185)
Investment loss   (25)   (182)   (26)   (807)   (2,516)   (355)
Other expenses   (4,316)   (5,591)   (790)   (7,380)   (4,012)   (567)
                               
Loss before income taxes and share of equity in profit/(loss) of unconsolidated affiliates   (229,838)   (947,135)   (133,588)   (175,317)   (828,286)   (116,824)
Income tax (expense)/ benefit   (55,301)   337    48    (183,208)   (32,908)   (4,641)
Share of equity in profit/(loss) of unconsolidated affiliates   61    (7,957)   (1,122)   (339)   (7,876)   (1,111)
                               
Net loss from continuing operations   (285,078)   (954,755)   (134,662)   (358,864)   (869,070)   (122,576)
                               
Loss from discontinued operations, net of tax   (55,240)   (49,929)   (7,042)   (27,959)   (163,791)   (23,102)
                               
Net loss   (340,318)   (1,004,684)   (141,704)   (386,823)   (1,032,861)   (145,678)
                               
Net income/(loss) attributable to non-controlling interests                              
Continuing operations   334    (16,761)   (2,364)   823    (17,296)   (2,439)
Discontinued operations   3,957    (60)   (8)   7,488    (19,286)   (2,720)
                               
Net loss attributable to ordinary shareholders                              
Continuing operations   (285,412)   (937,994)   (132,298)   (359,687)   (851,774)   (120,137)
Discontinued operations   (59,197)   (49,869)   (7,034)   (35,447)   (144,505)   (20,382)
                               
Net loss per share attributable to ordinary shareholders                                
—Basic and diluted                              
Continuing operations   (2.41)   (7.90)   (1.11)   (3.03)   (7.18)   (1.01)
Discontinued operations   (0.50)   (0.42)   (0.06)   (0.30)   (1.22)   (0.17)
                               
Weighted average shares used in calculating net loss per ordinary share:                              
—Basic and diluted                              
Continuing operations   118,669,795    118,669,795    118,669,795    118,669,795    118,669,795    118,669,795 
Discontinued operations   118,669,795    118,669,795    118,669,795    118,669,795    118,669,795    118,669,795 
                               
Net loss per ADS                              
—Basic and diluted                              
Continuing operations   (9.64)   (31.60)   (4.44)   (12.12)   (28.72)   (4.04)
Discontinued operations   (2.00)   (1.68)   (0.24)   (1.20)   (4.88)   (0.68)

 

12

 

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

 

   Three Months Ended August 31   Twelve Months Ended August 31 
   2023   2024   2023   2024 
   RMB   RMB   USD   RMB   RMB   USD 
                         
Net cash generated from operating activities   6,923    104,041    14,674    22,261    126,394    17,827 
                               
Net cash used in investing activities   (20,003)   (128,015)   (18,056)   (52,949)   (98,004)   (13,823)
                               
Net cash used in financing activities   (208,397)   (1,201)   (169)   (298,794)   (85,459)   (12,053)
                               
Effect of exchange rate changes on cash and cash equivalents, and restricted cash   23,319    (6,270)   (884)   38,934    (4,373)   (617)
                               
Net change in cash and cash equivalents, and restricted cash   (198,158)   (31,445)   (4,435)   (290,548)   (61,442)   (8,666)
                               
Cash and cash equivalents, and restricted cash at beginning of the period   765,394    537,239    75,774    857,784    567,236    80,005 
                               
Cash and cash equivalents, and restricted cash at end of the period   567,236    505,794    71,339    567,236    505,794    71,339 

 

13

 

 

 

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED

Reconciliations of GAAP and Non-GAAP Results

(Amounts in thousands, except for shares and per share data)

 

   Three Months Ended August 31   Year Ended August 31 
   2023   2024   2023   2024 
   RMB   RMB   USD   RMB   RMB   USD 
                         
Gross profit from continuing operations   79,833    35,864    5,059    467,428    503,586    71,028 
Add: Amortization of intangible assets   1,050    1,050    148    4,341    4,184    590 
Adjusted gross profit from continuing operations   80,883    36,914    5,207    471,769    507,770    71,618 
                               
Operating loss from continuing operations   (227,621)   (941,754)   (132,827)   (161,678)   (820,443)   (115,717)
Add: Share-based compensation expenses   -    3,240    457    -    8,101    1,143 
Add: Amortization of intangible assets   1,050    1,050    148    4,341    4,184    590 
Add: Impairment loss on goodwill   147,116    593,748    83,744    147,116    593,748    83,744 
Add: Impairment loss on intangible assets   -    258,326    36,435    -    258,326    36,435 
Add: Impairment loss on property and equipment   12,891    6,607    932    12,891    6,607    932 
Add: Impairment loss on the long-term investments   2,613    -    -    2,613    -    - 
Adjusted operating (loss)/income from continuing operations   (63,951)   (78,783)   (11,111)   5,283    50,523    7,127 
                               
Net loss   (340,318)   (1,004,684)   (141,704)   (386,823)   (1,032,861)   (145,678)
Add: Share-based compensation expenses   -    3,240    457    -    8,101    1,143 
Add: Amortization of intangible assets   1,050    1,050    148    4,341    4,184    590 
Add: Tax effect of amortization of intangible assets   (41)   (209)   (29)   (670)   (833)   (117)
Add: Impairment loss on goodwill   147,116    593,748    83,744    147,116    593,748    83,744 
Add: Impairment loss on intangible assets   -    258,326    36,435    -    258,326    36,435 
Add: Impairment loss on property and equipment   12,891    6,607    932    12,891    6,607    932 
Add: Impairment loss on the long-term investments   2,613    -    -    2,613    -    - 
Less: Loss from discontinued operations, net of tax   (55,240)   (49,929)   (7,042)   (27,959)   (163,791)   (23,102)
Adjusted net (loss)/income   (121,449)   (91,993)   (12,975)   (192,573)   1,063    151 
                               
Net loss attributable to ordinary shareholders   (344,608)   (987,863)   (139,332)   (395,134)   (996,279)   (140,519)
Add: Share-based compensation expenses   -    3,240    457    -    8,101    1,143 
Add: Amortization of intangible assets   1,050    1,050    148    4,341    4,184    590 
Add: Tax effect of amortization of intangible assets   (41)   (209)   (29)   (670)   (833)   (117)
Add: Impairment loss on goodwill   147,116    579,827    81,781    147,116    579,827    81,781 
Add: Impairment loss on intangible assets   -    258,326    36,435    -    258,326    36,435 
Add: Impairment loss on property and equipment   12,891    6,607    932    12,891    6,607    932 
Add: Impairment loss on the long-term investments   2,613    -    -    2,613    -    - 
Less: Loss from discontinued operations, net of tax   (59,197)   (49,869)   (7,034)   (35,447)   (144,505)   (20,382)
Adjusted net (loss)/income attributable to ordinary shareholders   (121,782)   (89,153)   (12,574)   (193,396)   4,438    627 
                               
Net loss   (340,318)   (1,004,684)   (141,704)   (386,823)   (1,032,861)   (145,678)
Add: Interest expense, net   (2,124)   (392)   (55)   5,452    1,315    185 
Add: Income tax expense   55,301    (337)   (48)   183,208    32,908    4,641 
Add: Depreciation and amortization   14,293    11,808    1,665    63,598    48,796    6,882 
Add: Share-based compensation expenses   -    3,240    457    -    8,101    1,143 
Add: Impairment loss on goodwill   147,116    593,748    83,744    147,116    593,748    83,744 
Add: Impairment loss on intangible assets   -    258,326    36,435    -    258,326    36,435 
Add: Impairment loss on property and equipment   12,891    6,607    932    12,891    6,607    932 
Add: Impairment loss on the long-term investments   2,613    -    -    2,613    -    - 
Less: Loss from discontinued operations, net of tax   (55,240)   (49,929)   (7,042)   (27,959)   (163,791)   (23,102)
Adjusted EBITDA   (54,988)   (81,755)   (11,532)   56,014    80,731    11,386 
                               
Weighted average shares used in calculating adjusted net (loss)/income per ordinary share:                              
—Basic and Diluted                              
Continuing operations   118,669,795    118,669,795    118,669,795    118,669,795    118,669,795    118,669,795 
Discontinued operations   118,669,795    118,669,795    118,669,795    118,669,795    118,669,795    118,669,795 
                               
Adjusted net (loss)/income per share attributable to ordinary shareholders                              
—Basic   (1.03)   (0.75)   (0.11)   (1.63)   0.04    0.01 
—Diluted   (1.03)   (0.75)   (0.11)   (1.63)   0.04    0.01 
                               
Adjusted net (loss)/income per ADS                        
—Basic   (4.12)   (3.00)   (0.44)   (6.52)   0.16    0.04 
—Diluted   (4.12)   (3.00)   (0.44)   (6.52)   0.16    0.04 

 

 

14