FOSHAN, China, April 18, 2024 /PRNewswire/ -- Bright Scholar Education Holdings Limited ("Bright Scholar," the "Company," "we" or "our") (NYSE: BEDU), a global premier education service company, today announced that it will release its unaudited financial results for the second quarter of fiscal 2024 ended February 29, 2024, on April 19, 2024, before the US market opens. The Company's management will host an earnings conference call at 9:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing/Hong Kong Time) on April ...

Financial Performance - Revenue for the first fiscal quarter ended November 30, 2023, was RMB 572.7 million, a 7.6% increase from RMB 532.5 million in the same quarter last year[13] - Gross profit for the first fiscal quarter was RMB 203.4 million, representing a 13.1% increase from RMB 179.8 million year-over-year[15] - Net income for the first fiscal quarter was RMB 59.2 million, a 40.9% increase from RMB 42.0 million in the same quarter last year[18] - Adjusted net income for the first fiscal quarter was RMB 61.9 million, reflecting a 37.3% increase from RMB 45.0 million year-over-year[18] - Revenue for the three months ended November 30, 2023, was RMB 572,736, an increase from RMB 532,460 in the same period of 2022, representing a growth of approximately 7.4%[40] - Gross profit for the same period was RMB 203,438, compared to RMB 179,830 in the prior year, reflecting a gross margin improvement[40] - Net income attributable to ordinary shareholders for the three months ended November 30, 2023, was RMB 54,692, up from RMB 37,932 in the same period of 2022, indicating a growth of approximately 44.2%[40] - Operating income for the three months ended November 2023 was RMB 74,514, an increase of 14.9% from RMB 64,917 in the same period of 2022[45] Revenue Breakdown - Revenue from Overseas Schools was RMB 252.9 million, a 28.4% increase compared to RMB 196.9 million in the same quarter last year[5] - Revenue from Complementary Education Services was RMB 210.0 million, a 12.8% increase from RMB 186.2 million year-over-year[6] - Revenue from Domestic Kindergartens & K-12 Operation Services was RMB 109.8 million, a 26.4% decrease from RMB 149.4 million in the same quarter last year[7] Earnings and Adjustments - Basic and diluted earnings per share for the first fiscal quarter were RMB 0.46, up 43.8% from RMB 0.32 in the same quarter last year[19] - Adjusted EBITDA for the first fiscal quarter was RMB 90.8 million, a 0.8% increase from RMB 90.1 million year-over-year[21] - Adjusted net income attributable to ordinary shareholders rose to RMB 57,344 for the three months ended November 2023, up 40.0% from RMB 40,953 in the same period of 2022[45] - Adjusted EBITDA for the three months ended November 2023 was RMB 90,789, slightly up from RMB 90,052 in the same period of 2022[45] - Adjusted net income per share attributable to ordinary shareholders was RMB 0.48 for the three months ended November 2023, up from RMB 0.35 in the same period of 2022[45] Cash and Assets - As of November 30, 2023, the Company's cash and cash equivalents were RMB 521.6 million, down from RMB 567.2 million as of August 31, 2023[22] - Cash and cash equivalents as of November 30, 2023, were RMB 492,661, down from RMB 537,325 as of August 31, 2023[35] - Cash and cash equivalents at the end of the period decreased to RMB 521,550 from RMB 855,518 at the end of the same period in 2022, reflecting a decline of 38.9%[42] - Total assets as of November 30, 2023, were RMB 4,509,891, a decrease from RMB 4,619,510 as of August 31, 2023[35] - Total liabilities decreased to RMB 2,901,234 as of November 30, 2023, from RMB 3,047,854 as of August 31, 2023[37] - The company’s total current assets as of November 30, 2023, were RMB 916,789, slightly down from RMB 927,399 as of August 31, 2023[35] Cash Flow - Net cash used in operating activities for the three months ended November 2023 was RMB (23,679), an improvement from RMB (26,667) in the same period of 2022[42] - Net cash generated from investing activities turned negative at RMB (17,685) for the three months ended November 2023, compared to RMB 16,337 in the same period of 2022[42] - The company reported a net change in cash and cash equivalents of RMB (45,686) for the three months ended November 2023, compared to RMB (2,266) in the same period of 2022[42] Future Outlook - The company aims to continue expanding its international education services and enhance its operational efficiency in the upcoming quarters[31]

FY2024 First Fiscal Quarter Performance Results February 2024 N Y S E : B E D U Bright Scholar Education Holdings Limited Pag Bright Scholar Education Holdings Limited. Page A Global Premier Education Service ...

Bright Scholar Education Holdings Ltd. (NYSE:BEDU) Q1 2024 Earnings Conference Call February 6, 2024 8:00 AM ET Company Participants Ruby Yim - IR Counsel Robert Niu - Chief Executive Officer Cindy Hui Zhang - Chief Financial Officer Conference Call Participants Operator Good morning, and thank you for standing by for Bright Scholar's First Fiscal Quarter of Fiscal 2024 Earnings Conference Call. [Operator Instructions]. Today’s conference is being recorded. I would now like to turn the meeting over to your ...

Core Viewpoint - Bright Scholar Education Holdings Limited reported a solid financial performance for the first fiscal quarter ended November 30, 2023, with significant year-over-year increases in revenue, gross profit, operating income, and net income, indicating a recovery in its business operations, particularly in the Overseas Schools segment [1][14]. Financial Performance Highlights - Revenue for the first fiscal quarter was RMB572.7 million, a 7.6% increase from RMB532.5 million in the same quarter last year [3][16]. - Gross profit increased by 13.1% to RMB203.4 million, with a gross margin improvement to 35.5% from 33.8% [3][18]. - Operating income rose by 14.8% to RMB74.5 million, with an operating margin of 13.0%, up from 12.2% [3][19]. - Net income for the quarter was RMB59.2 million, reflecting a 40.9% increase from RMB42.0 million year-over-year [3][19]. Segment Performance - Overseas Schools generated revenue of RMB252.9 million, a 28.4% increase from RMB196.9 million, accounting for 44.2% of total revenue [9][16]. - Complementary Education Services reported revenue of RMB210.0 million, a 12.8% increase from RMB186.2 million, representing 36.7% of total revenue [10][16]. - Domestic Kindergartens & K-12 Operation Services saw a revenue decline of 26.4% to RMB109.8 million, contributing 19.1% to total revenue [11][16]. Adjusted Financial Metrics - Adjusted gross profit was RMB206.8 million, a 12.6% increase from RMB183.6 million [4][18]. - Adjusted operating income reached RMB77.8 million, up 13.3% from RMB68.7 million [4][19]. - Adjusted net income for the quarter was RMB61.9 million, a 37.3% increase from RMB45.0 million [4][19]. - Adjusted EBITDA was RMB90.8 million, a slight increase of 0.8% from RMB90.1 million [4][22]. Earnings Per Share - Basic and diluted earnings per share were RMB0.46, compared to RMB0.32 in the same quarter last year, marking a 43.8% increase [5][20]. - Adjusted basic and diluted earnings per share were RMB0.48, up from RMB0.35, a 37.1% increase [5][21]. Management Commentary - The newly appointed CEO highlighted the company's strong market opportunities and the ongoing recovery of its business, particularly in the UK, despite macroeconomic challenges [14]. - The CEO emphasized the importance of operational optimizations and cost efficiencies in driving sustainable revenue growth and enhancing cash flows [14].

Core Viewpoint - Bright Scholar Education Holdings Limited will release its unaudited financial results for the first fiscal quarter of 2024 on February 5, 2024, after the US market closes [1]. Financial Results Announcement - The financial results will cover the first fiscal quarter ended November 30, 2023 [1]. - A conference call to discuss the quarterly results and recent business activities is scheduled for February 6, 2024, at 8:00 am US Eastern Time [3]. Company Overview - Bright Scholar is a global premier education service company that provides quality international education to students worldwide, equipping them with essential academic foundations and skillsets for higher education success [5].

FOSHAN, China, Jan. 18, 2024 /PRNewswire/ -- Bright Scholar Education Holdings Limited ("Bright Scholar" or the "Company") (NYSE: BEDU), a global premier education service company, today announced changes in its management. The Company received a letter of resignation dated January 3rd, 2024 from Mr. Hongru Zhou, notifying the Company of his resignation as the chief executive officer of the Company for personal reasons not resulting from any disagreement with the Company, its management, board of directors ...

Financial Performance - Revenue for the fiscal year 2023 was RMB2,123.8 million (approximately US$292.6 million), an increase from RMB1,714.0 million in 2022[316] - Net loss for the fiscal year 2023 was RMB386.8 million (approximately US$53.3 million), a decrease from RMB703.5 million in 2022[316] - Adjusted net loss for the fiscal year 2023 was RMB149.4 million (approximately US$20.6 million), compared to RMB141.7 million in 2022[316] - Revenue for 2023 was RMB 2,123,751 (US$292,600), a 24% increase from RMB 1,713,965 in 2022[485] - Gross profit for 2023 was RMB 597,332, representing a gross margin of 28.1%, up from 27.8% in 2022[485] - Net loss from continuing operations for 2023 was RMB 386,823, a decrease from RMB 703,537 in 2022, indicating improved operational efficiency[485] - The company reported a net loss attributable to ordinary shareholders of RMB 395,134 for 2023, compared to RMB 709,340 in 2022[485] - Revenue from continuing operations increased by 23.9% from RMB 1,714.0 million in the 2022 fiscal year to RMB 2,123.8 million (US$ 292.6 million) in the 2023 fiscal year[495] - Revenue from overseas schools rose by 24.0% from RMB 652.8 million in the 2022 fiscal year to RMB 809.5 million (US$ 111.5 million) in the 2023 fiscal year[495] - Revenue from complementary education services increased by 32.9% from RMB 636.6 million in the 2022 fiscal year to RMB 846.0 million (US$ 116.6 million) in the 2023 fiscal year[495] - Revenue from domestic kindergartens and K-12 operation services grew by 10.3% from RMB 424.6 million in the 2022 fiscal year to RMB 468.3 million (US$ 64.5 million) in the 2023 fiscal year[496] Student Enrollment and Capacity - The overseas school network consists of eight schools, with an average enrollment of 2,584 students for the 2023 school year[318] - The average number of students enrolled at overseas schools in the 2023 school year was 2,584, up from 2,377 in 2022[320] - The domestic kindergartens had an average of 1,243 students enrolled in the 2023 school year, with a total capacity of 2,944 students[337] - The total student enrollment for continuing operations increased from 3,282 in 2021 to 3,827 in 2023, reflecting a growth of approximately 16.6% [463] - The average number of students enrolled in domestic kindergartens rose from 939 in 2021 to 1,243 in 2023, while overseas schools saw an increase from 2,343 to 2,584 during the same period [462] - The company operates 17 schools as of 2023, up from 16 in both 2021 and 2022, with a total student capacity of 7,204 [465] Strategic Initiatives and Acquisitions - The company has been actively exploring mergers and acquisitions to expand its global school network, targeting quality private education providers[314] - The company acquired a 60% equity interest in Jiangxi Leti Camp Education Technology Co., Ltd., specializing in summer and winter camp activities[330] - The company has strategically invested in several education consulting service providers to enhance its overseas study consulting services[335] - The company plans to continue strategic acquisitions and investments to expand its global school network and enhance profitability[473] - A strategic acquisition of a local education technology firm is anticipated to enhance the company's service offerings and increase market share[435] Regulatory Environment - The company is subject to PRC regulations that restrict foreign investment in education, particularly in compulsory education[370] - The Law for Promoting Private Education in China was amended on December 29, 2018, allowing sponsors to establish non-profit or for-profit private schools, with the exception of compulsory education institutions which must remain non-profit[380] - Sponsors of for-profit private schools can retain profits and set their own tuition fees without prior government approval, while non-profit schools are subject to fee regulations by local governments[381] - The Ministry of Education (MOE) has established a nine-year compulsory education system, which includes six years of primary school and three years of middle school[390] - The implementation rules for the Law for Promoting Private Education became effective on September 1, 2021, further detailing operational requirements for private schools[387] - The company operates under significant regulations in China, prohibiting foreign ownership in compulsory education services at primary and middle school levels[441] Operational Efficiency and Cost Management - The company has established a centralized management system to oversee various aspects of its kindergartens, improving operational efficiency[342] - The average utilization rate for domestic kindergartens was 42.2% as of August 31, 2023, indicating potential for increased student enrollment without significant additional investment [466] - Selling, general and administrative expenses were RMB614.6 million (US$84.7 million) in 2023, accounting for 28.9% of total revenue[481] - Selling, general and administrative expenses decreased to RMB 617,184 in 2023, down from RMB 539,893 in 2022, indicating cost control measures[485] - The company plans to continue focusing on operational improvements and cost management strategies to enhance profitability in the future[488] Marketing and Brand Strategy - The company has strengthened its marketing strategy, increasing promotional budgets to enhance brand recognition and drive student recruitment[358] - The company has a synergistic relationship with Country Garden, which allows for preferential student placements and tuition discounts[357] - The company offers tuition discounts to certain homeowners and employees of Country Garden, which did not materially affect its financial position[353] - The company plans to implement a new marketing strategy that targets a younger demographic, projected to increase user acquisition by 20%[435] Educational Programs and Services - Approximately 80,000 students participated in domestic and overseas camp programs as well as domestic travel study programs in the 2023 fiscal year[331] - The English proficiency training program had an average enrollment of 2,745 students in the 2023 fiscal year[332] - For the 2023 school year, the average tuition and fees charged were RMB 23,314 for domestic kindergartens and RMB 249,729 for overseas schools[353] - Average tuition and fees for domestic kindergartens were RMB25,703, RMB27,070, and RMB23,314 (US$3,212) for the 2021, 2022, and 2023 school years, respectively[469] - Average tuition and fees for overseas schools increased from RMB203,337 in 2021 to RMB249,729 (US$34,406) in 2023, reflecting a recovery from the pandemic[469] Future Outlook - The company has set a future outlook with a revenue guidance of $200 million for the next quarter, indicating a 33% growth target[436] - New product launches are expected to contribute an additional $20 million in revenue, with a focus on educational technology solutions[435] - Overall, the company remains optimistic about its growth trajectory, supported by strong user engagement and strategic initiatives[433]

[Company Announcement](index=1&type=section&id=Company%20Announcement) Bright Scholar announced its unaudited financial results for the fourth fiscal quarter and full fiscal year ended August 31, 2023 [Bright Scholar Announces Unaudited Financial Results](index=1&type=section&id=Bright%20Scholar%20Announces%20Unaudited%20Financial%20Results) Bright Scholar Education Holdings Limited announced its unaudited financial results for the fourth fiscal quarter and full fiscal year ended August 31, 2023, on November 27, 2023 - Bright Scholar Education Holdings Limited announced its unaudited financial results for the fourth fiscal quarter and full fiscal year ended August 31, 2023, on November 27, 2023[1](index=1&type=chunk) [FINANCIAL PERFORMANCE HIGHLIGHTS](index=1&type=section&id=FINANCIAL%20PERFORMANCE%20HIGHLIGHTS) The company reported strong revenue growth and significant loss reduction for both Q4 and full FY2023, driven by overseas schools and complementary education services [Fourth Fiscal Quarter Ended August 31, 2023 Financial Highlights](index=1&type=section&id=Fourth%20Fiscal%20Quarter%20Ended%20August%2031%2C%202023%20Financial%20Highlights) The company's Q4 FY2023 revenue grew 38.9% to RMB 559.8 million, gross profit increased 32.5%, while gross margin slightly declined; operating and net losses significantly narrowed by 52.5% and 47.1% respectively Fourth Fiscal Quarter 2023 Financial Highlights (Year-over-Year Comparison) | RMB in millions Except EPS and % | Fourth Fiscal Quarter Ended August 31, 2023 | Fourth Fiscal Quarter Ended August 31, 2022 | YoY % Change | |:---------------------------------|:--------------------------------------------|:--------------------------------------------|:-------------| | Revenue | 559.8 | 402.9 | 38.9% | | Gross Profit | 109.1 | 82.3 | 32.5% | | Gross Margin | 19.5% | 20.4% | (0.9)% | | Operating Loss | (286.2) | (602.9) | 52.5% | | Operating Margin | (51.1)% | (149.6)% | 98.5% | | Net Loss for the quarter | (340.3) | (643.5) | 47.1% | | Adjusted Gross Profit | 112.8 | 86.3 | 30.7% | | Adjusted Operating Loss | (57.2) | (50.3) | (13.6)% | | Adjusted Net Loss for the quarter| (111.9) | (91.8) | (21.9)% | | Adjusted EBITDA for the quarter | (43.7) | (49.7) | 12.0% | | Basic and Diluted Loss per Share | (2.90) | (5.49) | 47.2% | | Adjusted Basic and Diluted Loss per Share for the quarter | (0.98) | (0.84) | (16.7)% | | Basic and Diluted Loss per ADS | (11.60) | (21.96) | 47.2% | | Adjusted Basic and Diluted Loss per ADS for the quarter | (3.92) | (3.36) | (16.7)% | [Fiscal Year 2023 Ended August 31, 2023 Financial Highlights](index=1&type=section&id=Fiscal%20Year%202023%20Ended%20August%2031%2C%202023%20Financial%20Highlights) The company's full FY2023 revenue grew 23.9% to RMB 2,123.8 million, gross profit increased 25.3% with a slight margin improvement; operating and net losses significantly narrowed by 69.2% and 45.0%, with adjusted operating profit turning positive Fiscal Year 2023 Financial Highlights (Year-over-Year Comparison) | RMB in millions Except EPS and % | Fiscal Year 2023 Ended August 31, 2023 | Fiscal Year 2022 Ended August 31, 2022 % | YoY Change | |:---------------------------------|:---------------------------------------|:-----------------------------------------|:-----------| | Revenue | 2,123.8 | 1,714.0 | 23.9% | | Gross Profit | 597.3 | 476.7 | 25.3% | | Gross Margin | 28.1% | 27.8% | 0.3% | | Operating Loss | (186.6) | (606.5) | 69.2% | | Operating Margin | (8.8)% | (35.4)% | 26.6% | | Net Loss for the year | (386.8) | (703.5) | 45.0% | | Adjusted Gross Profit | 612.2 | 494.5 | 23.8% | | Adjusted Operating Income/(Loss) | 53.7 | (40.9) | 231.4% | | Adjusted Net Loss for the year | (149.4) | (141.7) | (5.5)% | | Adjusted EBITDA for the year | 115.8 | 147.0 | (21.2)% |\n| Basic and Diluted Loss per Share | (3.33) | (5.98) | 44.3% | | Adjusted Basic and Diluted Loss per Share for the year | (1.33) | (1.24) | (7.3)% | | Basic and Diluted Loss per ADS | (13.32) | (23.92) | 44.3% | | Adjusted Basic and Diluted Loss per ADS for the year | (5.32) | (4.96) | (7.3)% | - Adjusted operating income turned from a **RMB 40.9 million loss** in FY2022 to a **RMB 53.7 million profit** in FY2023, representing a **231.4% year-over-year increase**[4](index=4&type=chunk) [Segment Performance Highlights](index=3&type=section&id=Segment%20Performance%20Highlights) Overseas Schools and Complementary Education Services achieved strong growth in both Q4 and full FY2023, while Domestic Kindergartens & K-12 Operation Services saw modest growth and face challenges Segment Revenue Performance | 业务板块 | 2023财年第四季度收入 (RMB百万) | 同比增长率 | 占总收入比例 | 2023财年全年收入 (RMB百万) | 同比增长率 | 占总收入比例 | |:-----------------------------|:-------------------------------|:-----------|:-------------|:---------------------------|:-----------|:-------------| | 海外学校 (CATS Global Schools) | 184.8 | 51.9% | 33.0% | 809.5 | 24.0% | 38.1% | | 素质教育服务 | 273.2 | 52.0% | 48.8% | 846.0 | 32.9% | 39.8% | | 国内幼儿园及K-12运营服务 | 101.8 | 0.2% | 18.2% | 468.3 | 10.3% | 22.1% | - Overseas Schools revenue grew **51.9%** in Q4 FY2023 and **24.0%** for the full year, significantly contributing to the company's improved performance[8](index=8&type=chunk) - Complementary Education Services revenue increased **52.0%** in Q4 FY2023 and **32.9%** for the full year, driven by the continued recovery of study camps and international competition training[9](index=9&type=chunk) - Domestic Kindergartens & K-12 Operation Services revenue grew only **0.2%** in Q4 FY2023 and **10.3%** for the full year, with challenges and a projected revenue decline in FY2024[10](index=10&type=chunk)[11](index=11&type=chunk) [MANAGEMENT COMMENTARY](index=4&type=section&id=MANAGEMENT%20COMMENTARY) Management discussed strong FY2023 performance, strategic transformation, and future imperatives focusing on high-growth segments and operational efficiency [Fiscal Year 2023 Performance and Turnaround Strategy](index=4&type=section&id=Fiscal%20Year%202023%20Performance%20and%20Turnaround%20Strategy) CEO Tim Hongru Zhou stated that FY2023 concluded with strong performance, exceeding revenue and profit expectations, driven by successful core business transformation and repositioning through management team strengthening, board optimization, cost competitiveness, and enhanced financial sustainability - The company's FY2023 revenue significantly exceeded guidance, and profitability surpassed internal expectations[11](index=11&type=chunk) - The company successfully transformed and repositioned its core businesses by strengthening the management team, optimizing the board, building a cost-competitive foundation, and enhancing financial sustainability[11](index=11&type=chunk) - Q4 FY2023 revenue grew **38.9%**, gross profit increased **32.5%**, and operating and net losses significantly decreased by **52.5%** and **47.1%** respectively[11](index=11&type=chunk) - Full FY2023 revenue increased **23.9%**, gross profit grew **25.3%**, and operating and net losses improved substantially by **69.2%** and **45.0%** respectively[11](index=11&type=chunk) [Strategic Imperatives for Fiscal Year 2024 and Beyond](index=4&type=section&id=Strategic%20Imperatives%20for%20Fiscal%20Year%202024%20and%20Beyond) The company will advance its transformation through three strategic imperatives: prioritizing high-growth, high-return businesses (especially overseas schools), divesting non-core complementary education and domestic K-12 operations, and continuously streamlining global operations and optimizing cost structures to achieve substantial margin and balance sheet improvements in FY2024, paving the way for sustainable profitable growth in FY2025 and FY2026 - The company will prioritize its most promising businesses, capitalizing on significant market opportunities, particularly within the Overseas Schools segment[11](index=11&type=chunk) - The company will enhance its business portfolio performance by divesting non-core education businesses within Complementary Education Services and Domestic Kindergartens & K-12 Operation Services[11](index=11&type=chunk) - The company will continuously streamline global operations and optimize its cost structure to align with business portfolio adjustments[11](index=11&type=chunk) - These strategic imperatives aim to improve portfolio efficiency and returns, expecting substantial margin and balance sheet improvements in FY2024, laying the foundation for sustainable profitable growth in FY2025 and FY2026[11](index=11&type=chunk) [GUIDANCE AND QUARTERLY REPORTING FOR FISCAL YEAR 2024](index=4&type=section&id=GUIDANCE%20AND%20QUARTERLY%20REPORTING%20FOR%20FISCAL%20YEAR%202024) The company cannot provide FY2024 revenue guidance due to business portfolio uncertainties but commits to resuming quarterly reporting for transparency [Fiscal Year 2024 Outlook](index=4&type=section&id=Fiscal%20Year%202024%20Outlook) Due to uncertainties regarding the scope, timing, and impact of business portfolio adjustments, management cannot provide FY2024 revenue guidance but commits to resuming quarterly reporting for transparency and regular updates - Management cannot currently provide FY2024 revenue guidance due to uncertainties surrounding the scope, timing, and impact of business portfolio adjustments[12](index=12&type=chunk) - The company commits to resuming quarterly earnings reports in FY2024 to ensure transparency and provide regular updates[12](index=12&type=chunk) [UNAUDITED FINANCIAL RESULTS FOR THE FOURTH FISCAL QUARTER ENDED AUGUST 31, 2023](index=4&type=section&id=UNAUDITED%20FINANCIAL%20RESULTS%20FOR%20THE%20FOURTH%20FISCAL%20QUARTER%20ENDED%20AUGUST%2031%2C%202023) Detailed financial results for Q4 FY2023 show revenue growth, improved operating performance, and narrowed net losses, primarily driven by overseas schools and complementary education [Revenue](index=4&type=section&id=Revenue_Q4) Total revenue for Q4 FY2023 was RMB 559.8 million, a 38.9% year-over-year increase, with both Overseas Schools and Complementary Education Services revenues growing over 50% due to continued post-pandemic recovery - Total revenue for Q4 FY2023 was **RMB 559.8 million**, representing a **38.9% year-over-year increase**[13](index=13&type=chunk) [Overseas Schools](index=4&type=section&id=Overseas%20Schools_Q4) Overseas Schools contributed RMB 184.8 million in revenue for Q4 FY2023, a 51.9% year-over-year increase, primarily due to the continued recovery of overseas school operations post-pandemic Overseas Schools Revenue (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | YoY Growth Rate | |:----------|:------------------------------------|:------------------------------------|:----------------| | Revenue | 184.8 | 121.6 | 51.9% | - Revenue growth was primarily driven by the continued recovery of overseas school operations post-pandemic[13](index=13&type=chunk) [Complementary Education Services](index=6&type=section&id=Complementary%20Education%20Services_Q4) Complementary Education Services contributed RMB 273.2 million in revenue for Q4 FY2023, a 52.0% year-over-year increase, primarily due to the continued recovery of study camps, international competition training, and other supplementary businesses Complementary Education Services Revenue (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | YoY Growth Rate | |:----------|:------------------------------------|:------------------------------------|:----------------| | Revenue | 273.2 | 179.7 | 52.0% | - Revenue growth was primarily driven by the continued recovery of study camps, international competition training, and other supplementary businesses[15](index=15&type=chunk) [Domestic Kindergartens & K-12 Operation Services](index=6&type=section&id=Domestic%20Kindergartens%20%26%20K-12%20Operation%20Services_Q4) Domestic Kindergartens & K-12 Operation Services contributed RMB 101.8 million in revenue for Q4 FY2023, a 0.2% year-over-year increase, primarily driven by a short-term rebound in various service revenues Domestic Kindergartens & K-12 Operation Services Revenue (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | YoY Growth Rate | |:----------|:------------------------------------|:------------------------------------|:----------------| | Revenue | 101.8 | 101.6 | 0.2% | - Revenue growth was primarily driven by a short-term rebound in various service revenues[15](index=15&type=chunk) [Cost of Revenue](index=6&type=section&id=Cost%20of%20Revenue_Q4) Cost of revenue for Q4 FY2023 was RMB 450.7 million, higher than RMB 320.6 million in the prior year period Cost of Revenue (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | |:-------------|:------------------------------------|:------------------------------------| | Cost of Revenue | 450.7 | 320.6 | [Gross Profit, Gross Margin and Adjusted Gross Profit](index=6&type=section&id=Gross%20Profit%2C%20Gross%20Margin%20and%20Adjusted%20Gross%20Profit_Q4) Gross profit for Q4 FY2023 was RMB 109.1 million, a 32.5% year-over-year increase, but gross margin decreased from 20.4% to 19.5%; adjusted gross profit was RMB 112.8 million, up 30.7% Gross Profit, Gross Margin, and Adjusted Gross Profit (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | YoY Growth Rate | |:--------------------|:------------------------------------|:------------------------------------|:----------------| | Gross Profit | 109.1 | 82.3 | 32.5% | | Gross Margin | 19.5% | 20.4% | (0.9)% | | Adjusted Gross Profit | 112.8 | 86.3 | 30.7% | [Selling, General and Administrative (SG&A) Expenses](index=6&type=section&id=Selling%2C%20General%20and%20Administrative%20%28SG%26A%29%20Expenses_Q4) Total SG&A expenses for Q4 FY2023 were RMB 176.8 million, higher than RMB 137.8 million in the prior year period Selling, General and Administrative Expenses (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | |:-------------|:------------------------------------|:------------------------------------| | SG&A Expenses | 176.8 | 137.8 | [Operating Loss, Operating Margin and Adjusted Operating Loss](index=6&type=section&id=Operating%20Loss%2C%20Operating%20Margin%20and%20Adjusted%20Operating%20Loss_Q4) Operating loss for Q4 FY2023 was RMB 286.2 million, a 52.5% reduction year-over-year, with operating margin significantly improving from 149.6% to 51.1%; adjusted operating loss expanded to RMB 57.2 million Operating Loss, Operating Margin, and Adjusted Operating Loss (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | YoY Change | |:----------------------|:------------------------------------|:------------------------------------|:--------------| | Operating Loss | (286.2) | (602.9) | Loss reduced 52.5% | | Operating Loss Margin | (51.1)% | (149.6)% | Improved 98.5% | | Adjusted Operating Loss | (57.2) | (50.3) | Loss expanded 13.6% | [Net Loss and Adjusted Net Loss](index=6&type=section&id=Net%20Loss%20and%20Adjusted%20Net%20Loss_Q4) Net loss for Q4 FY2023 was RMB 340.3 million, a 47.1% reduction year-over-year, driven by overall business recovery and significant improvement in overseas schools; adjusted net loss expanded to RMB 111.9 million Net Loss and Adjusted Net Loss (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | YoY Change | |:--------------------|:------------------------------------|:------------------------------------|:--------------| | Net Loss | (340.3) | (643.5) | Loss reduced 47.1% | | Adjusted Net Loss | (111.9) | (91.8) | Loss expanded 21.9% | - The reduction in net loss was partly due to overall business recovery, but primarily driven by significant improvements in revenue and profitability from the Overseas Schools segment[20](index=20&type=chunk) [Net Loss per Ordinary Share/ADS and Adjusted Net Loss per Ordinary Share/ADS](index=7&type=section&id=Net%20Loss%20per%20ordinary%20share%2FADS%20and%20Adjusted%20Net%20Loss%20per%20ordinary%20share%2FADS_Q4) Basic and diluted net loss per ordinary share was RMB 2.90 and per ADS was RMB 11.60 in Q4 FY2023, both significantly narrowed; adjusted net loss per ordinary share was RMB 0.98 and per ADS was RMB 3.92, both expanded year-over-year Net Loss per Ordinary Share/ADS (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB) | 2022 Fiscal Quarter 4 (RMB) | YoY Change | |:-------------------------------------------|:----------------------------|:----------------------------|:--------------| | Basic and Diluted Net Loss per Ordinary Share | (2.90) | (5.49) | Loss reduced 47.2% | | Adjusted Basic and Diluted Net Loss per Ordinary Share | (0.98) | (0.84) | Loss expanded 16.7% | | Basic and Diluted Net Loss per ADS | (11.60) | (21.96) | Loss reduced 47.2% | | Adjusted Basic and Diluted Net Loss per ADS | (3.92) | (3.36) | Loss expanded 16.7% | [Adjusted EBITDA Loss](index=7&type=section&id=Adjusted%20EBITDA%20Loss_Q4) Adjusted EBITDA loss for Q4 FY2023 was RMB 43.7 million, a 12.0% reduction year-over-year, primarily due to the strong recovery of Complementary Education Services Adjusted EBITDA Loss (Q4 FY2023) | Indicator | 2023 Fiscal Quarter 4 (RMB million) | 2022 Fiscal Quarter 4 (RMB million) | YoY Change | |:----------------------|:------------------------------------|:------------------------------------|:--------------| | Adjusted EBITDA Loss | (43.7) | (49.7) | Loss reduced 12.0% | - The reduction in adjusted EBITDA loss was primarily due to the strong recovery of Complementary Education Services[24](index=24&type=chunk) [UNAUDITED FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED AUGUST 31, 2023](index=7&type=section&id=UNAUDITED%20FINANCIAL%20RESULTS%20FOR%20THE%20FISCAL%20YEAR%20ENDED%20AUGUST%2031%2C%202023) Detailed financial results for full FY2023 highlight significant revenue growth, substantial loss reduction, and a turnaround in adjusted operating profit, led by overseas schools and complementary education [Revenue](index=7&type=section&id=Revenue_FY2023) Total revenue for full FY2023 was RMB 2,123.8 million, a 23.9% year-over-year increase, with Overseas Schools and Complementary Education Services revenues growing 24.0% and 32.9% respectively, and Domestic Kindergartens & K-12 Operation Services revenue growing 10.3% - Total revenue for full FY2023 was **RMB 2,123.8 million**, representing a **23.9% year-over-year increase**[25](index=25&type=chunk) [Overseas Schools](index=7&type=section&id=Overseas%20Schools_FY2023) Overseas Schools contributed RMB 809.5 million in revenue for full FY2023, a 24.0% year-over-year increase, primarily due to the continued recovery of overseas school operations post-pandemic Overseas Schools Revenue (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | YoY Growth Rate | |:----------|:-------------------------------|:-------------------------------|:----------------| | Revenue | 809.5 | 652.8 | 24.0% | - Revenue growth was primarily driven by the continued recovery of overseas school operations post-pandemic[25](index=25&type=chunk) [Complementary Education Services](index=7&type=section&id=Complementary%20Education%20Services_FY2023) Complementary Education Services contributed RMB 846.0 million in revenue for full FY2023, a 32.9% year-over-year increase, primarily due to the continued recovery of study camps, international competition training, and other supplementary businesses Complementary Education Services Revenue (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | YoY Growth Rate | |:----------|:-------------------------------|:-------------------------------|:----------------| | Revenue | 846.0 | 636.6 | 32.9% | - Revenue growth was primarily driven by the continued recovery of study camps, international competition training, and other supplementary businesses[25](index=25&type=chunk) [Domestic Kindergartens & K-12 Operation Services](index=7&type=section&id=Domestic%20Kindergartens%20%26%20K-12%20Operation%20Services_FY2023) Domestic Kindergartens & K-12 Operation Services contributed RMB 468.3 million in revenue for full FY2023, a 10.3% year-over-year increase, primarily driven by a short-term rebound in various service revenues Domestic Kindergartens & K-12 Operation Services Revenue (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | YoY Growth Rate | |:----------|:-------------------------------|:-------------------------------|:----------------| | Revenue | 468.3 | 424.6 | 10.3% | - Revenue growth was primarily driven by a short-term rebound in various service revenues[26](index=26&type=chunk) [Cost of Revenue](index=7&type=section&id=Cost%20of%20Revenue_FY2023) Cost of revenue for full FY2023 was RMB 1,526.4 million, higher than RMB 1,237.3 million in the prior year period Cost of Revenue (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | |:-------------|:-------------------------------|:-------------------------------| | Cost of Revenue | 1,526.4 | 1,237.3 | [Gross Profit, Gross Margin and Adjusted Gross Profit](index=8&type=section&id=Gross%20Profit%2C%20Gross%20Margin%20and%20Adjusted%20Gross%20Profit_FY2023) Gross profit for full FY2023 was RMB 597.3 million, a 25.3% year-over-year increase, with gross margin rising from 27.8% to 28.1%; adjusted gross profit was RMB 612.2 million, up 23.8% Gross Profit, Gross Margin, and Adjusted Gross Profit (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | YoY Growth Rate | |:--------------------|:-------------------------------|:-------------------------------|:----------------| | Gross Profit | 597.3 | 476.7 | 25.3% | | Gross Margin | 28.1% | 27.8% | 0.3% | | Adjusted Gross Profit | 612.2 | 494.5 | 23.8% | [Selling, General and Administrative (SG&A) Expenses](index=8&type=section&id=Selling%2C%20General%20and%20Administrative%20%28SG%26A%29%20Expenses_FY2023) Total SG&A expenses for full FY2023 were RMB 614.6 million, higher than RMB 539.9 million in the prior year period Selling, General and Administrative Expenses (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | |:-------------|:-------------------------------|:-------------------------------| | SG&A Expenses | 614.6 | 539.9 | [Operating Loss, Operating Margin and Adjusted Operating Income/Loss](index=8&type=section&id=Operating%20Loss%2C%20Operating%20Margin%20and%20Adjusted%20Operating%20Income%2FLoss_FY2023) Operating loss for full FY2023 was RMB 186.6 million, a 69.2% reduction year-over-year, with operating margin significantly improving from 35.4% to 8.8%; adjusted operating income turned profitable at RMB 53.7 million from a RMB 40.9 million loss Operating Loss, Operating Margin, and Adjusted Operating Income/Loss (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | YoY Change | |:------------------------------|:-------------------------------|:-------------------------------|:--------------| | Operating Loss | (186.6) | (606.5) | Loss reduced 69.2% | | Operating Loss Margin | (8.8)% | (35.4)% | Improved 26.6% | | Adjusted Operating Income/(Loss) | 53.7 | (40.9) | Increased 231.4% | [Net Loss and Adjusted Net Loss](index=8&type=section&id=Net%20Loss%20and%20Adjusted%20Net%20Loss_FY2023) Net loss for full FY2023 was RMB 386.8 million, a 45.0% reduction year-over-year, driven by overall business recovery and significant improvement in overseas schools; adjusted net loss expanded slightly to RMB 149.4 million Net Loss and Adjusted Net Loss (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | YoY Change | |:--------------------|:-------------------------------|:-------------------------------|:--------------| | Net Loss | (386.8) | (703.5) | Loss reduced 45.0% | | Adjusted Net Loss | (149.4) | (141.7) | Loss expanded 5.5% | - The reduction in net loss was partly due to overall business recovery, but primarily driven by significant improvements in revenue and profitability from the Overseas Schools segment[30](index=30&type=chunk) [Net Loss per Ordinary Share/ADS and Adjusted Net Loss per Ordinary Share/ADS](index=8&type=section&id=Net%20Loss%20per%20ordinary%20share%2FADS%20and%20Adjusted%20Net%20Loss%20per%20ordinary%20share%2FADS_FY2023) Basic and diluted net loss per ordinary share was RMB 3.33 and per ADS was RMB 13.32 for full FY2023, both significantly narrowed; adjusted net loss per ordinary share was RMB 1.33 and per ADS was RMB 5.32, both expanded year-over-year Net Loss per Ordinary Share/ADS (Full FY2023) | Indicator | 2023 Fiscal Year (RMB) | 2022 Fiscal Year (RMB) | YoY Change | |:-------------------------------------------|:-----------------------|:-----------------------|:--------------| | Basic and Diluted Net Loss per Ordinary Share | (3.33) | (5.98) | Loss reduced 44.3% | | Adjusted Basic and Diluted Net Loss per Ordinary Share | (1.33) | (1.24) | Loss expanded 7.3% | | Basic and Diluted Net Loss per ADS | (13.32) | (23.92) | Loss reduced 44.3% | | Adjusted Basic and Diluted Net Loss per ADS | (5.32) | (4.96) | Loss expanded 7.3% | [Adjusted EBITDA](index=9&type=section&id=Adjusted%20EBITDA_FY2023) Adjusted EBITDA for full FY2023 was RMB 115.8 million, lower than RMB 147.0 million in the prior year period Adjusted EBITDA (Full FY2023) | Indicator | 2023 Fiscal Year (RMB million) | 2022 Fiscal Year (RMB million) | YoY Change | |:---------------|:-------------------------------|:-------------------------------|:--------------| | Adjusted EBITDA | 115.8 | 147.0 | Decreased 21.2% | [Cash and Working Capital](index=9&type=section&id=Cash%20and%20Working%20Capital_FY2023) As of August 31, 2023, total cash and cash equivalents and restricted cash were RMB 567.2 million (US$78.2 million), a decrease from RMB 765.4 million as of May 31, 2023 Cash and Cash Equivalents and Restricted Cash (As of August 31, 2023) | Indicator | Amount (RMB million) | Amount (US$ million) | |:----------------------------------------|:---------------------|:---------------------| | Total Cash and Cash Equivalents and Restricted Cash | 567.2 | 78.2 | - As of August 31, 2023, cash and cash equivalents and restricted cash decreased from **RMB 765.4 million** as of May 31, 2023[33](index=33&type=chunk) [CONVENIENCE TRANSLATION](index=9&type=section&id=CONVENIENCE%20TRANSLATION) This section provides the RMB to USD exchange rate used for convenience translation of financial figures as of August 31, 2023 [RMB to USD Exchange Rate](index=9&type=section&id=RMB%20to%20USD%20Exchange%20Rate) The company reports in RMB, but for reader convenience, amounts are translated to USD at the prevailing exchange rate on the balance sheet date; as of August 31, 2023, the rate was US$1.00 to RMB 7.2582 - The company's reporting currency is RMB, with amounts translated to USD for reader convenience[34](index=34&type=chunk) - As of August 31, 2023, the exchange rate used for translation was **US$1.00 to RMB 7.2582**[34](index=34&type=chunk) [NON-GAAP FINANCIAL MEASURES](index=9&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section defines non-GAAP financial measures, explains their rationale for management use, and outlines their inherent analytical limitations [Definition of Non-GAAP Measures](index=9&type=section&id=Definition%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like adjusted EBITDA, net income/(loss), gross profit/(loss), operating income/(loss), and basic/diluted EPS/ADS to assess operating performance, calculated by excluding non-cash or non-operating items such as share-based compensation, intangible asset amortization, and specific impairment losses - Adjusted gross profit/(loss) is defined as gross profit/(loss) excluding amortization of intangible assets[35](index=35&type=chunk) - Adjusted EBITDA is defined as net income/(loss) excluding net interest income/(expense), income tax expense/benefit, depreciation and amortization, share-based compensation expense, impairment loss on operating lease right-of-use assets, goodwill impairment loss, intangible assets impairment loss, long-term investment impairment loss, and property and equipment impairment loss[35](index=35&type=chunk) - Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation expense, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on operating lease right-of-use assets, goodwill impairment loss, intangible assets impairment loss, long-term investment impairment loss, and property and equipment impairment loss[35](index=35&type=chunk) - Adjusted operating income/(loss) is defined as operating income/(loss) excluding share-based compensation expense, amortization of intangible assets, impairment loss on operating lease right-of-use assets, goodwill impairment loss, intangible assets impairment loss, long-term investment impairment loss, and property and equipment impairment loss[35](index=35&type=chunk) [Rationale for Non-GAAP Measures](index=10&type=section&id=Rationale%20for%20Non-GAAP%20Measures) Management uses non-GAAP financial measures to assess operating performance and formulate business plans by excluding non-cash expenses like depreciation, amortization, and share-based compensation, as well as non-operating items such as net interest income/(expense) and income tax expense/benefit, thereby enhancing comparability and aiding investor evaluation of the company's operating performance - Non-GAAP financial measures are utilized by management to assess operating performance and formulate business plans[38](index=38&type=chunk) - These measures exclude the impact of non-cash expenses like depreciation, amortization, and share-based compensation, as well as non-operating items such as net interest income/(expense) and income tax expense/benefit[38](index=38&type=chunk) - Excluding amortization of intangible assets enhances the comparability of operating results between newly acquired and long-held businesses[37](index=37&type=chunk) [Limitations of Non-GAAP Measures](index=10&type=section&id=Limitations%20of%20Non-GAAP%20Measures) Non-GAAP financial measures are not defined or presented under U.S. GAAP, possessing inherent analytical limitations; they do not reflect all revenue and expense items affecting operations and may differ from non-GAAP information used by other companies, thus limiting comparability - Non-GAAP financial measures are not defined or presented in accordance with U.S. GAAP and have inherent limitations as analytical tools[39](index=39&type=chunk) - They do not reflect all revenue and expense items that affect the company's operations, such as net interest income/(expense), income tax expense/benefit, depreciation and amortization, and share-based compensation expense[39](index=39&type=chunk) - These non-GAAP measures may differ from non-GAAP information used by other companies, including peer companies, which may limit their comparability[39](index=39&type=chunk) [About Bright Scholar Education Holdings Limited](index=10&type=section&id=About%20Bright%20Scholar%20Education%20Holdings%20Limited) Bright Scholar is a leading global education services company focused on providing international education and fostering academic skills for student success [Company Overview](index=10&type=section&id=Company%20Overview) Bright Scholar is a leading global education services company, primarily providing high-quality international education to students worldwide and cultivating essential academic foundations and skills for successful university admissions - Bright Scholar is a leading global education services company[40](index=40&type=chunk) - The company primarily provides high-quality international education to students worldwide, fostering critical academic foundations and skills necessary for successful university admissions[40](index=40&type=chunk) [Safe Harbor Statement](index=10&type=section&id=Safe%20Harbor%20Statement) This statement clarifies that the announcement contains forward-looking statements subject to risks and uncertainties, with no obligation to update unless legally required [Forward-Looking Statements Disclaimer](index=10&type=section&id=Forward-Looking%20Statements%20Disclaimer) This announcement contains forward-looking statements involving known or unknown risks, uncertainties, and other factors that could cause actual results to differ materially; the company undertakes no obligation to update any forward-looking statements unless required by law - This announcement contains forward-looking statements involving known or unknown risks, uncertainties, and other factors[41](index=41&type=chunk) - These factors could cause the company's actual results, performance, or achievements to differ materially from those expressed in the forward-looking statements[41](index=41&type=chunk) - The company undertakes no obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required by law[41](index=41&type=chunk) [Contact Information](index=10&type=section&id=Contact%20Information) This section provides essential contact details for investor relations and media inquiries [IR Contact](index=10&type=section&id=IR%20Contact) Investor Relations contact email is BEDU.IR@gcm.international - Investor Relations contact email: **BEDU.IR@gcm.international**[42](index=42&type=chunk) [Media Contact](index=10&type=section&id=Media%20Contact) Media contact email is media@brightscholar.com, and phone number is +86-757-2991-6814 - Media contact email: **media@brightscholar.com**[42](index=42&type=chunk) - Media contact phone: **+86-757-2991-6814**[42](index=42&type=chunk) [BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS](index=11&type=section&id=BRIGHT%20SCHOLAR%20EDUCATION%20HOLDINGS%20LIMITED%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The unaudited condensed consolidated balance sheets present the company's financial position as of August 31, 2023, detailing assets, liabilities, and equity [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of August 31, 2023, total assets were RMB 4,619.5 million (US$636.5 million), total liabilities were RMB 3,047.9 million (US$419.9 million), and total equity was RMB 1,571.7 million (US$216.5 million) Unaudited Condensed Consolidated Balance Sheets (As of August 31, 2023) | ASSETS Current assets | August 31, 2022 (RMB) | August 31, 2023 (RMB) | August 31, 2023 (USD) | |:------------------------------------------------------------|:----------------------|:----------------------|:----------------------| | Cash and cash equivalents | 664,769 | 537,325 | 74,030 | | Restricted cash, net | 191,365 | 28,261 | 3,894 | | Accounts receivable, net | 18,084 | 19,209 | 2,647 | | Amounts due from related parties, net | 196,626 | 188,445 | 25,963 | | Other receivables, deposits and other assets, net | 112,762 | 148,679 | 20,483 | | Inventories | 6,869 | 5,480 | 755 | | Held for sale assets | 11,258 | - | - | | Total current assets | 1,201,733 | 927,399 | 127,772 | | Restricted cash - non-current | 1,650 | 1,650 | 227 | | Property and equipment, net | 393,277 | 414,225 | 57,070 | | Intangible assets, net | 322,896 | 343,077 | 47,268 | | Goodwill, net | 1,433,916 | 1,328,872 | 183,086 | | Long-term investments | 40,486 | 36,070 | 4,970 | | Prepayments for construction contracts | 4,894 | 1,711 | 236 | | Deferred tax assets, net | 85,103 | 1,810 | 249 | | Other non-current assets, net | 15,343 | 15,249 | 2,101 | | Operating lease right-of-use assets | 1,453,833 | 1,549,447 | 213,475 | | Total non-current assets | 3,751,398 | 3,692,111 | 508,682 | | TOTAL ASSETS | 4,953,131 | 4,619,510 | 636,454 | | LIABILITIES AND EQUITY Current liabilities | August 31, 2022 (RMB) | August 31, 2023 (RMB) | August 31, 2023 (USD) | |:------------------------------------------------------------|:----------------------|:----------------------|:----------------------| | Accounts payable | 100,229 | 105,193 | 14,493 | | Amounts due to related parties | 343,032 | 311,451 | 42,910 | | Accrued expenses and other current liabilities | 262,490 | 279,690 | 38,535 | | Short-term loans | 149,239 | - | - | | Income tax payable | 85,856 | 99,367 | 13,690 | | Contract liabilities | 516,731 | 541,683 | 74,630 | | Refund liabilities | 20,517 | 17,572 | 2,421 | | Operating lease liabilities | 104,515 | 125,447 | 17,283 | | Total current liabilities | 1,582,609 | 1,480,403 | 203,962 | | Contract liabilities – non-current | 2,203 | 2,116 | 292 | | Deferred tax liabilities | 21,707 | 42,093 | 5,799 | | Other non-current liabilities due to related parties | 11,197 | - | - | | Long-term loan | 633 | - | - | | Operating lease liabilities – non-current | 1,439,239 | 1,523,242 | 209,865 | | Total non-current liabilities | 1,474,979 | 1,567,451 | 215,956 | | TOTAL LIABILITIES | 3,057,588 | 3,047,854 | 419,918 | | EQUITY | | | | | Share capital | 8 | 8 | 1 | | Additional paid-in capital | 1,693,358 | 1,697,370 | 233,856 | | Statutory reserves | 14,872 | 20,155 | 2,777 | | Accumulated other comprehensive income | 34,401 | 172,230 | 23,729 | | Accumulated deficit | (72,737) | (473,154) | (65,189) | | Shareholders' equity | 1,669,902 | 1,416,609 | 195,174 | | Non-controlling interests | 225,641 | 155,047 | 21,362 | | TOTAL EQUITY | 1,895,543 | 1,571,656 | 216,536 | | TOTAL LIABILITIES AND EQUITY | 4,953,131 | 4,619,510 | 636,454 | [BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS](index=13&type=section&id=BRIGHT%20SCHOLAR%20EDUCATION%20HOLDINGS%20LIMITED%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The unaudited condensed consolidated statements of operations provide a summary of the company's revenues, expenses, and net losses for Q4 and full FY2023 [Consolidated Statements of Operations](index=13&type=section&id=Consolidated%20Statements%20of%20Operations) The company's Q4 FY2023 revenue was RMB 559.8 million with a net loss of RMB 340.3 million; full FY2023 revenue was RMB 2,123.8 million with a net loss of RMB 386.8 million Unaudited Condensed Consolidated Statements of Operations (As of August 31, 2023) | | Q4 2022 (RMB) | Q4 2023 (RMB) | Q4 2023 (USD) | FY 2022 (RMB) | FY 2023 (RMB) | FY 2023 (USD) | |:------------------------------------------------------------------------------|:--------------|:--------------|:--------------|:--------------|:--------------|:--------------| | Revenue | 402,911 | 559,775 | 77,123 | 1,713,965 | 2,123,751 | 292,600 | | Cost of revenue | (320,564) | (450,651) | (62,089) | (1,237,306) | (1,526,419) | (210,303) | | Gross profit | 82,347 | 109,124 | 15,034 | 476,659 | 597,332 | 82,297 | | Selling, general and administrative expenses | (137,825) | (176,841) | (24,364) | (539,893) | (614,571) | (84,673) | | Impairment loss on goodwill | (419,805) | (207,830) | (28,633) | (419,805) | (207,830) | (28,633) | | Impairment loss on operating lease right-of use assets | (8,861) | - | - | (8,861) | - | - | | Impairment loss on property and equipment | (6,586) | (12,891) | (1,776) | (6,586) | (12,891) | (1,776) | | Impairment loss on intangible assets | (113,385) | (2,052) | (283) | (113,385) | (2,052) | (283) | | Impairment loss on the long-term investment | - | (2,613) | (360) | - | (2,613) | (360) | | Other operating income | 1,252 | 6,923 | 954 | 5,339 | 56,043 | 7,722 | | Operating loss | (602,863) | (286,180) | (39,428) | (606,532) | (186,582) | (25,706) | | Interest expense, net | (17,093) | 1,220 | 168 | (127,840) | (7,367) | (1,015) | | Investment income | 28,200 | 909 | 125 | 135,309 | 60 | 8 | | Other expenses | (579) | (3,902) | (537) | (5,808) | (6,677) | (920) | | Loss before income taxes and share of equity in (loss)/profit of unconsolidated affiliates | (592,335) | (287,953) | (39,672) | (604,871) | (200,566) | (27,633) | | Income tax expense | (11,667) | (52,425) | (7,223) | (58,919) | (185,918) | (25,615) | | Share of equity in (loss)/profit of unconsolidated affiliates | (39,515) | 61 | 8 | (39,747) | (339) | (47) | | Net loss | (643,517) | (340,317) | (46,887) | (703,537) | (386,823) | (53,295) | | Net loss attributable to noncontrolling interests | 7,556 | 4,291 | 591 | 5,803 | 8,311 | 1,145 | | Net loss attributable to ordinary shareholders | (651,073) | (344,608) | (47,478) | (709,340) | (395,134) | (54,440) | | Net loss per share attributable to ordinary shareholders —Basic | (5.49) | (2.90) | (0.40) | (5.98) | (3.33) | (0.46) | | —Diluted | (5.49) | (2.90) | (0.40) | (5.98) | (3.33) | (0.46) | | Weighted average shares used in calculating net loss per ordinary share: —Basic | 118,669,795 | 118,669,795 | 118,697,495 | 118,669,795 | 118,669,795 | 118,669,795 | | —Diluted | 118,669,795 | 118,669,795 | 118,697,495 | 118,669,795 | 118,669,795 | 118,669,795 | | Net loss per ADS —Basic | (21.96) | (1.60) | (23.92) | (13.32) | (1.84) | | | —Diluted | (21.96) | (11.60) | (1.60) | (23.92) | (13.32) | (1.84) | [BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS](index=15&type=section&id=BRIGHT%20SCHOLAR%20EDUCATION%20HOLDINGS%20LIMITED%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The unaudited condensed consolidated statements of cash flows detail the company's cash movements from operating, investing, and financing activities for Q4 and full FY2023 [Consolidated Statements of Cash Flows](index=15&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q4 FY2023 saw net cash inflow from operating activities of RMB 6.923 million, net cash outflow from investing activities of RMB 20.003 million, and net cash outflow from financing activities of RMB 208.397 million; full FY2023 had net cash inflow from operating activities of RMB 22.261 million, net cash outflow from investing activities of RMB 52.949 million, and net cash outflow from financing activities of RMB 298.794 million Unaudited Condensed Consolidated Statements of Cash Flows (As of August 31, 2023) | | Q4 2022 (RMB) | Q4 2023 (RMB) | Q4 2023 (USD) | FY 2022 (RMB) | FY 2023 (RMB) | FY 2023 (USD) | |:----------------------------------------------------------|:--------------|:--------------|:--------------|:--------------|:--------------|:--------------| | Net cash from operating activities | 167,161 | 6,923 | 954 | 47,173 | 22,261 | 3,067 | | Net cash from/(used in) investing activities | 310,193 | (20,003) | (2,756) | (836,769) | (52,949) | (7,295) | | Net cash from financing activities | (1,001,420) | (208,397) | (28,712) | 101,383 | (298,794) | (41,166) | | Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 10,260 | 23,319 | 3,213 | 30,834 | 38,934 | 5,364 | | Net increase/(decrease) in cash and cash equivalents, and restricted cash | (513,806) | (198,158) | (27,301) | (657,379) | (290,548) | (40,030) | | Cash and cash equivalents, and restricted cash at beginning of period | 1,371,590 | 765,394 | 105,452 | 1,515,163 | 857,784 | 118,181 | | Cash and cash equivalents, and restricted cash at end of period | 857,784 | 567,236 | 78,151 | 857,784 | 567,236 | 78,151 | [BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED Reconciliations of GAAP and Non-GAAP Results](index=16&type=section&id=BRIGHT%20SCHOLAR%20EDUCATION%20HOLDINGS%20LIMITED%20Reconciliations%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides reconciliations between GAAP and non-GAAP financial measures, illustrating adjustments for non-cash and non-operating items for Q4 and full FY2023 [GAAP to Non-GAAP Reconciliations](index=16&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) The company provided detailed reconciliations of GAAP to non-GAAP financial measures (including gross profit, operating loss, net loss, and EBITDA) to demonstrate performance adjusted for share-based compensation, intangible asset amortization, and various impairment losses GAAP to Non-GAAP Reconciliations (As of August 31, 2023) | | Q4 2022 (RMB) | Q4 2023 (RMB) | Q4 2023 (USD) | FY 2022 (RMB) | FY 2023 (RMB) | FY 2023 (USD) | |:------------------------------------------------------------------------------------------------|:--------------|:--------------|:--------------|:--------------|:--------------|:--------------| | Gross profit | 82,347 | 109,124 | 15,034 | 476,659 | 597,332 | 82,297 | | Add: Amortization of intangible assets | 3,931 | 3,642 | 502 | 17,814 | 14,916 | 2,055 | | Adjusted gross profit | 86,278 | 112,766 | 15,536 | 494,473 | 612,248 | 84,352 | | Operating loss | (602,863) | (286,180) | (39,428) | (606,532) | (186,582) | (25,706) | | Add: Share-based compensation expense | - | - | - | (816) | - | - | | Add: Amortization of intangible assets | 3,931 | 3,642 | 502 | 17,814 | 14,916 | 2,055 | | Add: Impairment loss on operating lease right-of-use assets | 8,861 | - | - | 8,861 | - | - | | Add: Impairment loss on goodwill | 419,805 | 207,830 | 28,633 | 419,805 | 207,830 | 28,633 | | Add: Impairment loss on intangible assets | 113,385 | 2,052 | 283 | 113,385 | 2,052 | 283 | | Add: Impairment loss on property and equipment | 6,586 | 12,891 | 1,776 | 6,586 | 12,891 | 1,776 | | Add: Impairment loss on the long-term investment | - | 2,613 | 360 | - | 2,613 | 360 | | Adjusted operating (loss)/income | (50,295) | (57,152) | (7,874) | (40,897) | 53,720 | 7,401 | | Net loss | (643,517) | (340,317) | (46,887) | (703,537) | (386,823) | (53,295) | | Add: Share-based compensation expense | - | - | - | (816) | - | - | | Add: Amortization of intangible assets | 3,931 | 3,642 | 502 | 17,814 | 14,916 | 2,055 | | Add: Tax effect of amortization of intangible assets | (811) | (581) | (80) | (3,764) | (2,883) | (397) | | Add: Impairment loss on operating lease right-of-use assets | 8,861 | - | - | 8,861 | - | - | | Add: Impairment loss on goodwill | 419,805 | 207,830 | 28,633 | 419,805 | 207,830 | 28,633 | | Add: Impairment loss on intangible assets | 113,385 | 2,052 | 283 | 113,385 | 2,052 | 283 | | Add: Impairment loss on property and equipment | 6,586 | 12,891 | 1,776 | 6,586 | 12,891 | 1,776 | | Add: Impairment loss on the long-term investment | - | 2,613 | 360 | - | 2,613 | 360 | | Adjusted net loss | (91,760) | (111,870) | (15,413) | (141,666) | (149,404) | (20,585) | | Net loss attributable to ordinary shareholders | (651,073) | (344,608) | (47,478) | (709,340) | (395,134) | (54,440) | | Add: Share-based compensation expense | - | - | - | (816) | - | - | | Add: Amortization of intangible assets | 3,931 | 3,642 | 502 | 17,814 | 14,916 | 2,055 | | Add: Tax effect of amortization of intangible assets | (811) | (581) | (80) | (3,764) | (2,883) | (397) | | Add: Impairment loss on operating lease right-of-use assets | 8,861 | - | - | 8,861 | - | - | | Add: Impairment loss on goodwill | 419,805 | 207,830 | 28,633 | 419,805 | 207,830 | 28,633 | | Add: Impairment loss on intangible assets | 113,385 | 2,052 | 283 | 113,385 | 2,052 | 283 | | Add: Impairment loss on property and equipment | 6,586 | 12,891 | 1,776 | 6,586 | 12,891 | 1,776 | | Add: Impairment loss on the long-term investment | - | 2,613 | 360 | - | 2,613 | 360 | | Adjusted net loss attributable to ordinary shareholders | (99,316) | (116,161) | (16,004) | (147,469) | (157,715) | (21,730) | | Net loss | (643,517) | (340,317) | (46,887) | (703,537) | (386,823) | (53,295) | | Add: Interest expense, net | 17,093 | (1,220) | (168) | 127,840 | 7,367 | 1,015 | | Add: Income tax expense | 11,667 | 52,425 | 7,223 | 58,919 | 185,918 | 25,615 | | Add: Depreciation and amortization | 16,442 | 19,990 | 2,754 | 115,934 | 83,919 | 11,562 | | Add: Share-based compensation expense | - | - | - | (816) | - | - | | Add: Impairment loss on operating lease right-of-use assets | 8,861 | - | - | 8,861 | - | - | | Add: Impairment loss on goodwill | 419,805 | 207,830 | 28,633 | 419,805 | 207,830 | 28,633 | | Add: Impairment loss on intangible assets | 113,385 | 2,052 | 283 | 113,385 | 2,052 | 283 | | Add: Impairment loss on property and equipment | 6,586 | 12,891 | 1,776 | 6,586 | 12,891 | 1,776 | | Add: Impairment loss on the long-term investment | - | 2,613 | 360 | - | 2,613 | 360 | | Adjusted EBITDA | (49,678) | (43,736) | (6,026) | 146,977 | 115,767 | 15,949 | | Weighted average shares used in calculating adjusted net loss per ordinary share: —Basic and Diluted | 118,669,795 | 118,669,795 | 118,669,795 | 118,697,495 | 118,669,795 | 118,669,795 | | Adjusted net loss per share attributable to ordinary shareholders —Basic | (0.84) | (0.98) | (0.13) | (1.24) | (1.33) | (0.18) | | —Diluted | (0.84) | (0.98) | (0.13) | (1.24) | (1.33)

Revenue and Profitability - Revenue for the six months ended February 28, 2023, was RMB 977.5 million, an increase of 11.9% compared to RMB 873.5 million for the same period last year[11]. - Gross profit for the period was RMB 295.2 million, representing a 14.0% increase from RMB 258.9 million year-over-year, with a gross margin of 30.2%[13]. - Operating income for the period was RMB 25.7 million, a significant improvement from an operating loss of RMB 22.9 million in the same period last year, resulting in an operating margin of 2.6%[14]. - Adjusted net loss for the period narrowed to RMB 2.7 million from RMB 46.4 million, marking a year-over-year improvement of 94.1%[16]. - Revenue from Overseas Schools increased by 17.4% to RMB 402.9 million, accounting for 41.2% of total revenue[5]. - Revenue from Complementary Education Services rose by 14.5% to RMB 365.3 million, representing 37.4% of total revenue[6]. - Domestic Kindergartens & K-12 Operation Services revenue decreased slightly to RMB 209.3 million from RMB 211.3 million, accounting for 21.4% of total revenue[12]. - Net loss attributable to ordinary shareholders for the six months ended February 2023 was RMB 12,431, a reduction from a net loss of RMB 49,328 for the same period in 2022, indicating a decrease in loss of approximately 74.8%[37]. - Net loss decreased from RMB 52,938 thousand to RMB 8,808 thousand, showing an improvement of 83.4%[43]. - Adjusted net loss attributable to ordinary shareholders improved from RMB 42,779 thousand to RMB 6,363 thousand, a reduction of 85.2%[43]. Cash and Assets - As of February 28, 2023, the company's cash and cash equivalents totaled RMB 826.3 million, down from RMB 856.1 million as of August 31, 2022[20]. - Cash and cash equivalents as of February 2023 were RMB 630,294, down from RMB 664,769 as of August 31, 2022, representing a decrease of approximately 5.2%[33]. - Cash and cash equivalents at the end of the period decreased from RMB 1,492,620 thousand to RMB 827,964 thousand, a drop of 44.4%[40]. - Total assets as of February 2023 were RMB 5,021,010, an increase from RMB 4,953,131 as of August 31, 2022[34]. - Total liabilities as of February 2023 were RMB 3,077,493, compared to RMB 3,057,588 as of August 31, 2022, showing a slight increase of about 0.6%[35]. Future Outlook - The company expects revenue for the fiscal year 2023 to be between RMB 1.9 billion and RMB 2.0 billion, reflecting a year-over-year growth of 10% to 15%[21]. - The company continues to focus on providing quality international education and expanding its market presence globally[29]. Operating Performance - Adjusted EBITDA for the period was RMB 63.5 million, down 50.3% from RMB 127.7 million in the same period last year[19]. - Adjusted EBITDA decreased from RMB 127,664 thousand to RMB 63,462 thousand, a decline of 50.3%[43]. - Net cash generated from operating activities improved from a negative RMB 385,616 thousand to a positive RMB 23,536 thousand[40]. - Net cash used in investing activities significantly decreased from RMB 1,181,644 thousand to RMB 11,956 thousand, indicating a reduction in investment outflows[40]. Share Information - The company reported a weighted average of 118,669,795 shares used in calculating adjusted net loss per ordinary share, with a loss per share of RMB (0.05) for the period ended February 2023[43].