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].
精英汇集团(01775) - 2021 - 年度财报