香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致之任何損失承擔任何責任。 BExcellent Group Holdings Limited 精英匯集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1775） 截 至2023年7月31日止年度 全年業績公告 財務摘要 本集團截至2023年7月31日止財政年度與截至2022年7月31日止年度比較的業績概述如下： ‧ 本集團收入由141,800,000港元減少7.5%至131,200,000港元。 ‧ 私立中學輔助教育服務的課節修讀人次總數由179,000名減少26.3%至132,000名。 ‧ 本集團虧損由26,200,000港元增加2.8%至26,900,000港元。 ‧ 本集團經調整虧損由36,900,000港元減少26.4%至27,200,000港元。* ‧ 本公司擁有人應佔虧損由25,500,000港元增加9.2%至27,800,000港元。 於2023年7月31日，本集團持有現金及現金等價物75,300, ...

Revenue and Financial Performance - Revenue for the six months ended January 31, 2023, was HKD 68,287,000, a decrease of 18.1% from HKD 83,342,000 in the same period of 2022[2] - The company reported a loss of HKD 12,995,000 for the six months ended January 31, 2023, compared to a loss of HKD 8,121,000 in the prior year[2] - Total revenue decreased by HKD 15,100,000 or 18.1% to HKD 68,300,000 for the six months ended January 31, 2023, primarily due to a decline in private supplementary education services revenue[23] - Revenue from private supplementary education services decreased by HKD 21,300,000 or 31.3% to HKD 46,800,000, with student attendance dropping by 44,000 or 37.9%[23] - Revenue from private secondary school tutoring services decreased by 31.4% to HKD 46,801,000 from HKD 68,126,000 year-over-year[66] - Revenue from private secondary school day services increased by HKD 1,600,000 or 32.4% compared to the same period last year, due to an increase in the number of unique students[17] - Operating loss for the period was HKD 11,598,000, compared to a loss of HKD 5,651,000 in the previous year, indicating a deterioration in operational performance[48] - The company reported a net loss of HKD 12,995,000 for the period, which is an increase from a loss of HKD 8,121,000 in 2022, reflecting a 60% increase in losses year-over-year[48] Student Attendance and Services - Total student attendance for private secondary school tutorial services decreased from 116,000 to 72,000, a decline of 37.9%[4] - The number of regular course attendees dropped by 27.4%, while summer course attendance fell by 65.8% due to the impact of the pandemic[16] - The average classroom capacity revenue per student decreased from HKD 25.3 to HKD 21.2, reflecting a reduction of 16.2%[4] - The average course fee per student increased to HKD 650 from HKD 587, indicating a rise of 10.7%[16] Operational Adjustments and Future Outlook - The company is adapting to changes in the HKDSE curriculum, which may shift student focus to subjects like English, presenting new growth opportunities[12] - The management is actively addressing the challenges posed by the pandemic and is focused on providing quality educational services[11] - The management remains optimistic about the future of the private supplementary education services industry despite current challenges[22] Costs and Expenses - Employee costs accounted for 49.0% of total revenue, up from 39.6% in the previous year, reflecting increased labor costs[27] - Employee costs increased by HKD 500,000 or 1.3% from HKD 33,000,000 for the six months ended January 31, 2022, to HKD 33,500,000 for the six months ended January 31, 2023, primarily due to increased headcount for business expansion in mainland China[29] - Tutor service fees decreased by HKD 4,600,000 or 29.9% from HKD 15,500,000 for the six months ended January 31, 2022, to HKD 10,900,000 for the six months ended January 31, 2023, mainly due to reduced income from private secondary school tutoring services[30][31] - Printing and other operating expenses decreased by HKD 600,000 or 2.7% from HKD 21,100,000 for the six months ended January 31, 2022, to HKD 20,500,000 for the six months ended January 31, 2023, attributed to a reduction in printing costs related to private secondary school tutoring services[32] - Advertising and promotional expenses increased by HKD 3,300,000 or 171.0% from HKD 1,900,000 for the six months ended January 31, 2022, to HKD 5,200,000 for the six months ended January 31, 2023, due to increased investment in traditional and digital marketing channels[34] Assets and Liabilities - As of January 31, 2023, the group's current assets decreased slightly to HKD 125,300,000 from HKD 126,700,000 as of July 31, 2022, mainly due to a reduction in cash and cash equivalents[37] - The group's current ratio as of January 31, 2023, was 1.26, down from 1.44 as of July 31, 2022[37] - The group's debt-to-equity ratio as of January 31, 2023, was 81.1%, up from 74.9% as of July 31, 2022, calculated based on bank borrowings of HKD 54,800,000 and lease liabilities of HKD 18,600,000[42] - Total assets decreased to HKD 198,018,000 from HKD 201,677,000, a decline of approximately 1.3%[49] - Total liabilities increased to HKD 108,959,000 from HKD 101,350,000, marking a rise of about 7.8%[51] Cash Flow and Investments - Operating cash flow for the six months ended January 31, 2023, was HKD 12,479,000, compared to HKD 2,150,000 for the same period in 2022, representing a significant increase[55] - Net cash used in investing activities was HKD 8,879,000 for the six months ended January 31, 2023, compared to HKD 1,998,000 in 2022[55] - The net cash used in financing activities was HKD 6,898,000 for the six months ended January 31, 2023, down from HKD 9,655,000 in 2022[55] - Cash and cash equivalents at the end of the period were HKD 100,514,000, compared to HKD 71,610,000 at the end of the same period in 2022[55] Shareholder Information and Corporate Governance - The company is 74.4% owned by Zunli Enterprises Limited, which is beneficially owned by Ms. Liang Heqi (60%), Mr. Tan Huilong (26%), and others[132] - The company has adhered to the corporate governance code as per the listing rules since its listing on the main board until January 31, 2023[144] - The company has adopted the standard code for securities transactions, confirming compliance by all directors and relevant employees for the six months ending January 31, 2023[145] - The company’s audit committee, consisting of three independent non-executive directors, has reviewed the interim report and financial statements for the six months ending January 31, 2023[147] - The company maintains the required public float as stipulated by the listing rules as of the interim report date[148] Acquisitions and Future Plans - The company acquired 51% of Yingfu Consulting (International) Limited for a total consideration of HKD 6,400,000 on November 30, 2022, expanding its educational service offerings[122] - The company plans to acquire 30% of Lingyou Education Limited for a total consideration of HKD 3,968,400, which includes cash and shares, enhancing its market presence in the education sector[125] - On March 30, 2023, the company’s wholly-owned subsidiary agreed to acquire shares in the target company for a total consideration of HKD 3,968,400, which includes cash of HKD 1,050,000 and the issuance of 3,648,000 shares at HKD 0.80 each[150]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致之任何損失承擔任何責任。 BExcellent Group Holdings Limited 精 英 匯 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1775） 截 至2023年1月31日 止 六 個 月 中 期 業 績 公 告 財務摘要 本集團截至2023年1月31日止六個月與截至2022年1月31日止同期比較的業績概述如下： ‧ 本集團收入由83,300,000港元下跌18.1%至約68,300,000港元。 ‧ 私立中學輔助教育服務的課節修讀人次總數由116,000名下跌約37.9%至72,000名。 ‧ 截至2023年1月31日止六個月的本公司擁有人應佔虧損為13,200,000港元（截至2022年1月 31日止六個月，本公司擁有人應佔虧損為7,500,000港元）。 ‧ 銀行結餘及現金於2023年1月31日錄得100,500,000港元。 ‧ 董事會不建議派付截至2023年1月31日止 ...

Education Services and Market Expansion - The group has established a strategic cooperation agreement with United International College (UIC) to develop a platform for HKDSE teacher development and a comprehensive assessment database for the Greater Bay Area, aiming to enhance educational services [9]. - The number of cross-border students with Hong Kong residency in mainland China exceeds 200,000, not including those relocating with families, indicating a significant market for international examination services [9]. - The group has invested in multiple high-end preschool and primary education brands this year, with satisfactory revenue growth progress reported [12]. - The group has initiated a series of high-end services for academic and career planning, including personalized counseling and global education information, to adapt to the changing educational landscape [14]. - The group plans to actively promote educational technology digitalization, including STEM education, Blockchain, and Metaverse-related projects, in alignment with government policies [12]. - The group anticipates that the demand for HKDSE-related services will significantly drive its business expansion outside of Hong Kong, especially with the establishment of HKDSE examination centers in mainland China starting in 2024 [13]. - The company plans to expand HKDSE education services to the Greater Bay Area in mainland China, starting with a partnership in Shenzhen [40]. - The company is optimistic about the growth of international education services in mainland China, driven by increasing demand for HKDSE-based education [41]. - The group has achieved its enrollment targets for the HKDSE international high school program in Shenzhen within less than a year, demonstrating effective resource allocation and market responsiveness [9]. Financial Performance - Revenue decreased from HKD 177.4 million for the year ended July 31, 2021, to HKD 141.8 million for the year ended July 31, 2022, a decline of 20.1% [26]. - Operating loss reduced from HKD 27.3 million for the year ended July 31, 2021, to HKD 23.4 million for the year ended July 31, 2022, a decrease of 14.4% [26]. - Private secondary school tutoring service revenue decreased by 21.9% from HKD 145.9 million in 2021 to HKD 113.9 million in 2022 [31]. - The number of tutoring sessions for private secondary school tutoring services dropped from 225,000 in 2021 to 179,000 in 2022 [31]. - Total revenue from supporting education services and products decreased from HKD 23.5 million in 2021 to HKD 19.1 million in 2022 [28]. - Average course fee per tutoring session decreased from HKD 648 in 2021 to HKD 637 in 2022 [31]. - The ongoing COVID-19 pandemic has severely impacted the operational environment, leading to a decline in student enrollment and interest in tutoring services [26]. - The group recorded a loss of HKD 26,200,000 for the year ended July 31, 2022, primarily due to a decrease in revenue [56]. Operational Challenges - The group has seen a 60% increase in net outflow of population in Hong Kong, from 69,200 in mid-2021 to 113,200 in mid-2022, which presents both challenges and opportunities for the education sector [12]. - Revenue from private secondary school support services decreased by 21.9% from HKD 145.9 million to HKD 113.9 million, with student attendance dropping by 20.4% from 225,000 to 179,000 [43]. - Revenue from mock examination services decreased by 34.3% from HKD 6 million to HKD 3.9 million [36]. - Revenue from children's education services decreased by 34.8% from HKD 4.9 million to HKD 3.2 million, significantly affected by the pandemic [37]. Cost Management and Financial Health - Employee costs decreased by approximately HKD 11,000,000 or 13.5% from HKD 81,000,000 for the year ended July 31, 2021, to approximately HKD 70,000,000 for the year ended July 31, 2022 [49]. - Tutor service fees decreased from approximately HKD 48,400,000 for the year ended July 31, 2021, to approximately HKD 33,000,000 for the year ended July 31, 2022, reflecting a significant reduction in revenue from private school tutoring services [50]. - The current ratio decreased from 2.04 as of July 31, 2021, to 1.44 as of July 31, 2022, primarily due to an increase in borrowings from HKD 7,600,000 to HKD 55,100,000 [57]. - The debt-to-equity ratio increased to approximately 74.9% as of July 31, 2022, compared to 19.4% as of July 31, 2021 [59]. Strategic Initiatives and Future Outlook - The company is investing in new technology development, allocating $F million towards R&D initiatives aimed at enhancing operational efficiency [83]. - Market expansion plans include entering G new regions, which are expected to increase market share by H% [84]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the I sector [82]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer engagement by J% [81]. - The company reported a net profit margin of K%, reflecting improved cost management and operational efficiencies [79]. - The board of directors emphasized a commitment to sustainability, with plans to reduce carbon emissions by L% over the next five years [80]. Shareholder and Corporate Governance - The company has not engaged in any buybacks or redemptions of its listed securities during the fiscal year ending July 31, 2022, indicating a focus on maintaining capital structure [104]. - The company has no major contracts with its controlling shareholders as of July 31, 2022 [113]. - The company has complied with the disclosure requirements under the Listing Rules regarding connected transactions [111]. - The company’s major shareholders have agreed to jointly control their respective interests in the company, requiring unanimous consent for business and operational decisions [126]. - The company has not been aware of any significant violations of relevant laws and regulations that would materially affect its business operations as of July 31, 2022 [199].

Financial Performance - Revenue for the six months ended January 31, 2022, was HKD 83,342,000, a decrease of 10.6% from HKD 93,260,000 for the same period in 2021[3]. - The loss for the period was HKD 8,121,000, compared to a loss of HKD 5,583,000 in the previous year[3]. - Total revenue decreased by 10.6% from HKD 93.3 million in the six months ended January 31, 2021, to HKD 83.3 million in the same period of 2022[27]. - The group recorded a loss of HK$8,100,000 for the six months ended January 31, 2022, compared to a loss of HK$5,600,000 in the same period in 2021, primarily due to a significant decline in revenue from private secondary school tutoring services[43]. - Total comprehensive loss for the period amounted to HKD 8,150 thousand, compared to HKD 5,797 thousand in the same period last year, indicating a 40.7% increase in losses[54]. - Basic and diluted loss per share was HKD 1.51, compared to HKD 1.02 in the previous year, reflecting a 48.0% increase in loss per share[54]. Revenue Breakdown - Revenue from private secondary education services was HKD 68,126,000, down from HKD 74,259,000 in 2021[15]. - Revenue from supplementary education services decreased from HKD 14,682,000 in 2021 to HKD 10,414,000 in 2022[15]. - Revenue from private secondary school tutoring services fell by 8.3% to HKD 68.1 million, down from HKD 74.3 million, with student attendance decreasing by 1.7%[27]. - Revenue from supporting educational services and products dropped by 29.1% to HKD 10.4 million, primarily due to a 64.7% decline in mock exam service revenue[28]. - Revenue from children's education services decreased by 38.5% to HKD 1.6 million, impacted by parents' reluctance to send children to in-person classes[24]. - Revenue from private secondary day school services increased to HKD 4,802,000, up 11.2% from HKD 4,319,000[75]. Student Enrollment and Attendance - The number of unique students enrolled decreased from 17,000 in 2021 to 16,000 in 2022[6]. - Total class attendance decreased from 118,000 in 2021 to 116,000 in 2022[6]. - The ongoing COVID-19 pandemic has severely impacted the operational environment, leading to a decline in student enrollment and attendance[13]. Cost Management - Labor costs accounted for 56.3% of total costs, down from 61.1% in the previous year, with other operational expenses following[31]. - Employee costs decreased by 25.9% from HK$44,606,000 in the six months ended January 31, 2021, to HK$33,038,000 in the six months ended January 31, 2022, primarily due to a reduction in workforce during the pandemic[34]. - Tutor service fees fell by 34.3% from HK$23,576,000 in the six months ended January 31, 2021, to HK$15,480,000 in the six months ended January 31, 2022, attributed to decreased revenue from private secondary school tutoring services[35][36]. - Printing and other operating expenses decreased by 8.5% from HK$23,035,000 in the six months ended January 31, 2021, to HK$21,071,000 in the six months ended January 31, 2022, mainly due to reduced printing costs related to private secondary school tutoring services[37]. Cash Flow and Assets - As of January 31, 2022, the group's current assets decreased to HK$93,600,000 from HK$103,600,000 as of July 31, 2021, with cash and cash equivalents dropping from HK$81,100,000 to HK$71,600,000[44]. - The ending cash and cash equivalents balance was HKD 71,610,000, down from HKD 106,289,000 at the end of the previous period[75]. - The cash generated from operating activities was HKD 1,191,000 for the six months ended January 31, 2022, significantly lower than HKD 26,949,000 for the same period in 2021[140]. - The group’s total equity as of January 31, 2022, was HKD 120,956,000, compared to HKD 100,000,000 as of July 31, 2021, indicating an increase of 20.96%[138]. Shareholder Information - The company is primarily held by Zunli Enterprises Limited, which owns approximately 75% of the shares[154]. - Key shareholders include Ms. Liang Heqi and Mr. Tan Huilong, each holding 375 million shares, representing 75% ownership[158]. - The total equity held by major shareholders in the company is approximately 375 million shares, equating to 75%[158]. Corporate Governance - The board of directors has adhered to the corporate governance code since the company's listing date, ensuring high standards of governance[176]. - The company has adopted a standard code for securities transactions to regulate transactions by directors and relevant employees[177]. - The audit committee has reviewed the interim report and the unaudited financial statements for the six months ending January 31, 2022[182]. Future Strategies - The company plans to adopt a more cautious business strategy to maintain financial resources and strengthen capital management amid ongoing market volatility[25]. - The company aims to expand its revenue sources through international education services in the Greater Bay Area and online education platforms[25].

Educational Trends and Services - The company reported a significant increase in public primary school vacancies, rising from approximately 7,200 in October 2020 to 12,500 in June 2021, representing a 75% increase[10]. - The number of vacancies in public secondary schools also increased from about 40,000 to 42,500, a growth of approximately 6%[10]. - The management plans to extend supplementary education services to primary school levels to capture a broader age demographic and increase service reach[10]. - The company has strengthened partnerships with various institutions, including China Mobile Hong Kong and the Hong Kong Management Association, to promote industry-education integration in the Greater Bay Area[7][12]. - The company aims to leverage its extensive data resources from HKDSE subjects to develop new teaching methodologies and support the training of new tutors[12]. - The management emphasizes the importance of adapting to post-pandemic educational trends, focusing on diversified and personalized learning experiences[13]. - The company is actively seeking collaboration opportunities with smaller tutoring institutions to create synergistic effects in community service[13]. - The management believes that the influx of cross-border students will peak in the coming years, providing a unique opportunity for the company to play a significant role in their education[13]. Financial Performance - The company's revenue decreased from HKD 287 million for the year ended July 31, 2020, to HKD 177.4 million for the year ended July 31, 2021, representing a decline of 38.2%[24]. - The company recorded a loss of HKD 27.6 million for the year ended July 31, 2021, compared to a loss of approximately HKD 19.8 million for the year ended July 31, 2020, an increase of about 39.2%[24]. - Revenue from private secondary school tutoring services decreased by 39.2% to HKD 145.9 million for the year ended July 31, 2021, with student attendance dropping significantly due to pandemic-related restrictions[28]. - The number of unique students enrolled in private secondary school tutoring services fell from 35,000 to 23,000, and total class attendance decreased from 405,000 to 225,000[26]. - Revenue from private secondary day school services decreased by approximately 21.5%, with unique student enrollment dropping from about 400 to 300[29]. - Revenue from supporting educational services and products decreased to HKD 23.5 million for the year ended July 31, 2021, down from HKD 36.8 million in the previous year[26]. - Total revenue decreased by approximately HKD 109.6 million or 38.2% to approximately HKD 177.4 million for the year ended July 31, 2021, compared to approximately HKD 287 million for the year ended July 31, 2020[37]. - Revenue from mock exam services decreased by HKD 5.4 million or 47.6% to HKD 6 million for the year ended July 31, 2021, from HKD 11.5 million for the year ended July 31, 2020[37]. - Revenue from children's education services decreased by HKD 1 million or 17.1% to HKD 4.9 million for the year ended July 31, 2021, from HKD 5.9 million for the year ended July 31, 2020[37]. - Other income increased by HKD 5.8 million or 42.4% to HKD 19.6 million for the year ended July 31, 2021, from HKD 13.8 million for the year ended July 31, 2020, mainly due to increased government subsidies[39]. Operational Adjustments - The company has shifted focus towards enhancing online learning experiences to mitigate the impact of in-person class restrictions due to the pandemic[28]. - The company continues to explore new educational services and products, including online courses and overseas study consultation services[30]. - The company aims to expand its market share by increasing the variety of courses and expanding the range of services offered[37]. - The company is exploring opportunities to expand educational services beyond Hong Kong, particularly in the Greater Bay Area, leveraging its experience in the Hong Kong education sector[33]. - The company is focused on improving operational efficiency through strict cost control measures and more flexible human resource allocation[33]. Cost Management and Employee Expenses - Employee costs decreased by approximately HKD 16.9 million or 17.3% to approximately HKD 81 million for the year ended July 31, 2021, from approximately HKD 97.9 million for the year ended July 31, 2020[43]. - Tutor service fees decreased from HKD 79,600,000 for the year ended July 31, 2020, to HKD 48,400,000 for the year ended July 31, 2021, a reduction of approximately 39.2% due to decreased revenue from private school tutoring services[44]. - Marketing expenses decreased from HKD 8,200,000 for the year ended July 31, 2020, to HKD 5,000,000 for the year ended July 31, 2021, a reduction of approximately 39.8%[46]. - Printing and other operating expenses decreased from HKD 69,900,000 for the year ended July 31, 2020, to HKD 44,500,000 for the year ended July 31, 2021, a reduction of approximately 36.3%[48]. Corporate Governance and Compliance - The company has adopted a standard code for securities trading to regulate transactions by directors and relevant employees[192]. - The board regularly reviews its composition to ensure it possesses the necessary skills and experience for the group's business[195]. - The company secretary provides advice on corporate governance matters to the board[198]. - The board believes that high standards of corporate governance are essential for protecting shareholder interests and enhancing corporate value[191]. - The independent non-executive directors have confirmed their independence according to the guidelines set out in the listing rules[200]. - The company has applied the principles of the corporate governance code and complied with all applicable code provisions[191]. Shareholder Information and Equity - The company is approximately 75% owned by Zunli Enterprises Limited, which is beneficially owned by key shareholders including Ms. Liang Heqi (60%) and Mr. Tan Huilong (26%)[113]. - Zunli Enterprises Limited holds 375,000,000 shares, representing 75% of the total shares[115]. - The company has issued unexercised share options under the post-IPO share option scheme, which was approved on June 21, 2018, and became effective on July 13, 2018[111]. - The beneficial ownership of Ms. Liang Heqi and Mr. Tan Huilong includes 1,000,000 and 3,500,000 shares respectively, representing 0.2% and 0.7% of the total shares[110]. - The company has a total of 25,000,000 shares held by Yizhi Development Limited, representing 5% of the total shares[115]. - The company has a total of 5,000,000 shares held by Dr. Lin Yiming, which along with 20,000,000 shares represents a total of 25,000,000 shares or 5%[115]. Future Outlook and Strategic Initiatives - The company is considering mergers and acquisitions of quality educational institutions to enhance its service offerings and market presence[13]. - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing service delivery[65]. - Market expansion plans include entering F new regions, which are anticipated to increase market share by G%[65]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the H sector[65]. - Operational efficiency improvements are projected to reduce costs by I%, enhancing overall profitability[65]. - The management team emphasized a commitment to sustainability, with plans to invest J million in eco-friendly initiatives over the next five years[65]. - The company aims to enhance customer engagement through digital platforms, targeting a K% increase in online interactions[65].

Online Education Services - The group completed over 650,000 hours of online teaching, with more than 30,000 unique students utilizing the online platform as of July 31, 2020[9]. - The acquisition of Doctor Online Limited was completed in July, expanding the group's online education services beyond secondary education to include professional qualification exam preparation and machine learning[12]. - The group aims to enhance its digital learning capabilities with a new permanent IT base, which will broaden its educational service offerings[12]. - The group is focusing on a hybrid learning model, combining online and offline education to maintain service quality in the densely populated Hong Kong market[10]. - The company has transitioned its offline teaching services to online formats due to the COVID-19 pandemic, enhancing its digital service delivery channels[45]. Financial Performance - The company reported revenue of approximately HKD 287 million for the fiscal year ending July 31, 2020, a decrease of about 22.8% compared to HKD 371.7 million for the previous fiscal year[32]. - The company incurred a loss of approximately HKD 19.8 million for the fiscal year ending July 31, 2020, compared to a profit of HKD 10.5 million for the previous fiscal year[32]. - Total revenue decreased by approximately 84.7 million HKD or 22.8% to about 287 million HKD for the year ended July 31, 2020, compared to approximately 371.7 million HKD for the year ended July 31, 2019[49]. - Revenue from private secondary school tutoring services decreased by approximately 77.7 million HKD or 24.5% to about 240 million HKD for the year ended July 31, 2020, from approximately 317.7 million HKD for the year ended July 31, 2019[49]. - The group recorded a loss of HKD 19,800,000 for the year ended July 31, 2020, compared to a profit of HKD 10,500,000 for the year ended July 31, 2019[64]. Student Enrollment and Attendance - The average number of classes taken per student decreased from 11.6 in the 2019 fiscal year to 10.9 in the 2020 fiscal year[22]. - Private secondary education services generated revenue of HKD 239.987 million in 2020, down from HKD 317.696 million in 2019, with student attendance dropping from 50,000 to 35,000[35]. - The number of course participants decreased by approximately 141,000 or 25.8% to about 405,000 for the year ended July 31, 2020, compared to approximately 546,000 for the year ended July 31, 2019[49]. - The number of class attendance for private secondary education services decreased from 546,000 in 2019 to 405,000 in 2020[37]. Operational Challenges - The group recorded the largest revenue decline and course enrollment drop in its history due to prolonged school closures exceeding 180 days[9]. - The company faced significant challenges due to social unrest in late 2019 and the COVID-19 pandemic, which led to a suspension of in-person classes for at least five months[31]. Investment and Development - The company invested in enhancing its information infrastructure and online teaching platform to improve educational services and student experience[38]. - The company is actively seeking partnerships for research and development in artificial intelligence within the education sector[14]. - The company plans to expand its service offerings and course types to capture more market share in response to the demand for continuing education courses[44]. - The company is investing in new technology development, allocating $5 million for R&D in the upcoming fiscal year[91]. Governance and Compliance - The management emphasized the importance of enhancing internal controls and compliance measures to mitigate risks[88]. - The board of directors highlighted the importance of maintaining strong governance practices to support long-term growth[88]. - The company’s business is subject to educational regulations, and failure to comply could significantly impact operations and financial performance[99]. Shareholder Information - The board proposed a final dividend of HKD 0.01 per share for the year ended July 31, 2020, unchanged from the previous year[69]. - The company has not engaged in any buybacks or redemptions of its listed securities during the reporting period[115]. - The company is controlled by a group of core shareholders who collectively own approximately 75% of the company, with specific ownership percentages of 60%, 26%, 4%, 4%, 3%, and 3%[127]. Employee and Operational Metrics - As of July 31, 2020, the company had 369 full-time employees, an increase from 334 in 2019, and 288 part-time employees, down from 711 in 2019[187]. - Employee costs decreased by approximately HKD 5,800,000 or 5.6% from approximately HKD 103,700,000 for the year ended July 31, 2019, to approximately HKD 97,900,000 for the year ended July 31, 2020[56]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue increase of 10% to 12%[89]. - New product launches are expected to contribute an additional $50 million in revenue over the next year[88]. - Market expansion plans include entering two new regions, which are projected to increase market share by 8%[90].

Financial Performance - Revenue declined by approximately 8.9% from about HKD 408.1 million to approximately HKD 371.7 million[25] - Profit attributable to owners decreased by approximately 54.1% from about HKD 25.9 million to approximately HKD 11.9 million[25] - Total revenue for the fiscal year ending July 31, 2019, decreased by approximately 8.9% to HKD 317,696,000 compared to HKD 360,039,000 in 2018[50] - Revenue for the year ended July 31, 2019, decreased by approximately HKD 36.4 million or 8.9% to about HKD 371.7 million from approximately HKD 408.1 million for the year ended July 31, 2018[59] - Net profit for the year decreased by approximately 56.4% from approximately HKD 24.2 million to approximately HKD 10.5 million for the year ended July 31, 2019[73] Student Engagement - The number of private secondary school tutorial service sessions decreased by approximately 17.8% from about 664,000 sessions last year to approximately 546,000 sessions this year[25] - The average number of sessions per student decreased from approximately 12.1 to approximately 10.9[37] - The number of unique students enrolled in private secondary education services dropped to 50,000 in 2019 from 55,000 in 2018, reflecting a decline in student engagement[46] - The total number of class sessions attended in private secondary education services decreased to 546,000 in 2019 from 664,000 in 2018[50] Revenue Sources - Revenue from supplementary education services and products increased to HKD 42,825,000 in 2019, up from HKD 36,868,000 in 2018, indicating a growth of approximately 15.9%[52] - Revenue from mock examination services was HKD 11,633,000 in 2019, down from HKD 12,557,000 in 2018, showing a decline of approximately 7.3%[52] - Revenue from private secondary school tutoring services decreased by approximately HKD 42.3 million or 11.8% to about HKD 317.7 million, with the number of course participants dropping by approximately 118,000 or 17.8% to about 546,000[59] - Revenue from children's education increased by approximately HKD 1.8 million or 18.8% to about HKD 11.2 million, driven by the launch of new educational services[60] Strategic Initiatives - The group plans to invest more resources to create the largest online platform in Hong Kong, integrating teaching talents alongside physical branches[27] - The group has signed a strategic cooperation agreement with China Mobile Hong Kong to enhance online and offline learning and assessment capabilities[27] - The group is actively seeking to acquire quality education-related businesses, including those focused on early childhood to primary education and vocational training[29] - The group aims to leverage big data to enhance existing online and offline services in the education sector[29] - The group has initiated a collaboration with GPEX to promote a comprehensive Cambridge English assessment and learning program[28] Operational Costs - Employee costs accounted for approximately 58.9% of total costs, with total employee costs slightly decreasing by about HKD 1 million or 0.9% to approximately HKD 103.7 million[62][66] - Operating lease payments increased by approximately HKD 2.5 million or about 4.7% from approximately HKD 53.8 million for the year ended July 31, 2018, to approximately HKD 56.3 million for the year ended July 31, 2019, mainly due to new teaching centers and increased rental payments[68] - Advertising and promotional expenses rose from approximately HKD 14.9 million to approximately HKD 16.9 million, attributed to increased one-time promotional expenses for brand establishment[69] - Printing and other operating expenses decreased by approximately HKD 17.2 million or about 19.2% from approximately HKD 89.2 million to approximately HKD 72 million, mainly due to the absence of legal and professional fees related to the listing[70] Corporate Governance - The board aims to achieve high standards of corporate governance, which is crucial for protecting shareholder interests and enhancing corporate value and accountability[199] - The company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules for the year ended July 31, 2019[200] - The board of directors includes independent non-executive members with extensive experience in various sectors, enhancing corporate governance[94] Future Outlook - The company plans to expand its market presence by opening 5 new learning centers in the next fiscal year[85] - A new online learning platform is set to launch in Q2 2024, aiming to increase user engagement by 40%[86] - The company anticipates a revenue growth forecast of 20% for the upcoming fiscal year, driven by new product launches and market expansion[89] - The management team has identified potential acquisition targets in the education sector to further enhance market share[90] Shareholder Information - The company proposed a final dividend of HKD 0.01 per share and a special dividend of HKD 0.02 per share, subject to shareholder approval[75] - The total distributable reserves available to equity shareholders amounted to approximately HKD 51.8 million as of July 31, 2019, an increase from approximately HKD 20.2 million in 2018[118] - The company is held approximately 75% by Zunli Enterprises Limited, which is beneficially owned by key shareholders with percentages of 60%, 26%, 4%, 4%, 3%, and 3% respectively[132] Market Position - The company is a leading provider of private secondary education services in Hong Kong, primarily operating private secondary day schools[103] - The company has experienced significant growth in its educational services, contributing to its market leadership in Hong Kong[103] Risk Factors - The company faces risks related to the retention of its top instructors, as the majority of its income and profitability is derived from courses and products provided by these instructors[105] - The company’s operations are subject to educational regulations, and failure to obtain or maintain necessary registrations could lead to significant adverse impacts on its business and financial performance[106]