Financial Performance - Total revenue for the fiscal year 2021 was RMB 1,418,655,000, representing a 31.3% increase from RMB 1,080,587,000 in fiscal year 2020[7]. - The net loss for the fiscal year 2021 was RMB (1,658,392,000), which is a 118.7% increase compared to RMB (758,239,000) in fiscal year 2020[7]. - Adjusted net loss for the fiscal year 2021, calculated under non-IFRS measures, was RMB (1,322,557,000), up 101.0% from RMB (658,022,000) in fiscal year 2020[9]. - Basic and diluted loss per share for fiscal year 2021 was RMB (1.72), compared to RMB (0.79) in fiscal year 2020, reflecting a 117.7% increase[7]. - The company reported a gross profit of RMB 412,208,000 for fiscal year 2021, down from RMB 493,086,000 in fiscal year 2020[9]. - Total revenue increased by 31.3% from RMB 1,080.6 million in FY2020 to RMB 1,418.7 million in FY2021[22]. - K-12 education segment revenue surged by 166.7% from RMB 295.1 million in FY2020 to RMB 787.2 million in FY2021, with paid student numbers rising from 1.856 million to 3.315 million[23]. - University education segment revenue decreased by 14.5% from RMB 641.7 million in FY2020 to RMB 548.8 million in FY2021, with paid student numbers dropping from 942,000 to 573,000[22]. - Gross profit decreased by 16.4% from RMB 493.1 million in FY2020 to RMB 412.2 million in FY2021, with gross margin declining from 45.6% to 29.1%[26]. - Total cost of revenue increased by 71.3% from RMB 587.5 million in FY2020 to RMB 1 billion in FY2021, primarily due to increased teaching staff and course research personnel costs[26]. Student Enrollment and Segments - Total paid student numbers increased to 3.89 million, a year-on-year growth of 36.5%[16]. - K-12 education segment saw a net total revenue increase of 166.7% and paid student numbers increased by 78.6%[16]. - Average spending per paid student in university education increased from RMB 1,222 in FY2020 to RMB 1,303 in the reporting period[17]. - Paid student numbers in the university segment decreased to 573,000 from 942,000 in the previous fiscal year[17]. - K-12 course paid student numbers increased by 66.8% for New Oriental Online and 102.0% for DFUB courses[18]. - The preschool education segment experienced a decrease in student enrollment due to adjustments in the product line[19]. Strategic Initiatives and Future Plans - The company aims to enhance its core competitiveness in online extracurricular education services and expand its offerings across various educational segments[12]. - Future strategy includes expanding product offerings and enhancing online and offline integrated teaching (OMO) models[20]. - The company aims to provide a "one-stop" service for overseas exam preparation, enhancing collaboration with international exam providers[21]. - Continued investment in advanced educational technology to improve user experience and course engagement[21]. Financial Position and Cash Flow - Total assets as of fiscal year 2021 were RMB 3,285,318,000, an increase from RMB 3,049,244,000 in fiscal year 2020[11]. - The total equity attributable to the owners of the company was RMB 2,008,872,000 in fiscal year 2021, compared to RMB 1,863,700,000 in fiscal year 2020[11]. - Cash and cash equivalents as of May 31, 2021, were RMB 1.5 billion, down from RMB 1.9 billion on November 30, 2020, and RMB 480.3 million on May 31, 2020[44]. - The net cash used in operating activities for fiscal year 2021 was RMB (913.7) million, compared to RMB (521.4) million in fiscal year 2020, indicating increased cash outflow[45]. - The net cash generated from investing activities was RMB 659.1 million in fiscal year 2021, primarily due to the withdrawal of RMB 1.7 billion from time deposits[47]. - The cash flow from financing activities for fiscal year 2021 was RMB 1.4 billion, a significant increase compared to RMB (135.5) million in fiscal year 2020[45]. - The company’s net cash and cash equivalents increased by RMB 1.16 billion during fiscal year 2021, compared to a decrease of RMB 2.09 billion in fiscal year 2020[45]. Governance and Compliance - The board of directors consists of nine members, including two executive directors and three independent non-executive directors, ensuring a diverse governance structure[55]. - The company has received annual independence confirmations from its independent non-executive directors, ensuring compliance with listing rules[65]. - The company has established a dedicated task force to monitor and analyze the legal and regulatory developments in China's online education sector, hiring external compliance consultants to oversee daily operations compliance[170]. - The company has implemented strict internal control measures to enhance transparency and accountability to shareholders[148]. - The audit committee, composed of three non-executive directors, has reviewed the group's financial reporting procedures and internal control systems during the fiscal year 2021[157]. Risks and Challenges - The company is facing significant adverse impacts on its K-12 business due to the new regulations requiring tutoring institutions in China's compulsory education system to register as non-profit organizations[118]. - Foreign investment in subject-based training institutions is prohibited, which may necessitate restructuring existing contractual arrangements and ownership structures, potentially harming overall business operations and financial performance[119]. - The "double reduction" policy may impose strict requirements on licensing and approval for subject-based training institutions, adversely affecting the types and numbers of students served[119]. - The company has identified several significant risks in fiscal year 2021, including market competition and innovation risks, necessitating continuous improvement of online course products and services to maintain competitive advantage[167]. Environmental, Social, and Governance (ESG) - The company has committed to fulfilling social responsibilities and promoting sustainable development, as detailed in its environmental, social, and governance report[120]. - The ESG report indicates that the company has established an ESG management system to assess risks and opportunities related to ESG[190]. - The company focuses on online education and adheres to environmental laws, resulting in no significant violations related to environmental and ecological issues during the reporting period[198]. - The company promotes energy conservation and emission reduction as part of its commitment to green sustainable development[198]. - The company has identified 21 key ESG issues based on stakeholder importance and business relevance, forming a substantial issues matrix for ESG disclosure[194].
东方甄选(01797) - 2021 - 年度财报