Financial Performance - Total revenue for the fiscal year 2022 was RMB 898,535 thousand, a decrease of 36.7% from RMB 1,418,655 thousand in fiscal year 2021[9]. - The net loss for the fiscal year 2022 was RMB 533,964 thousand, compared to a net loss of RMB 1,658,392 thousand in fiscal year 2021, showing an improvement[11]. - Adjusted net loss for the fiscal year 2022 was RMB 363,725 thousand, significantly better than the adjusted net loss of RMB 1,322,557 thousand in fiscal year 2021[11]. - Basic and diluted loss per share for fiscal year 2022 was RMB 0.07, compared to RMB 0.46 in fiscal year 2021[9]. - Total revenue from continuing and discontinued operations decreased by 36.7% to RMB 898.5 million in fiscal year 2022 from RMB 1,418.7 million in fiscal year 2021[20]. - The net loss from continuing and discontinued operations decreased by 67.8% to RMB 534.0 million in fiscal year 2022 from RMB 1,658.4 million in fiscal year 2021[20]. - Revenue from continuing operations decreased by 3.7% from RMB 623.6 million in FY2021 to RMB 600.5 million in FY2022[31]. - The total revenue of the university education segment decreased from RMB 548.8 million in FY2021 to RMB 517.5 million in FY2022, primarily due to adjustments in core products and marketing strategies[32]. - The K-12 education segment's total revenue dropped by 62.4% from RMB 787.2 million in FY2021 to RMB 296.1 million in FY2022, as the group terminated its K-12 business during the reporting period[33]. - The preschool education segment's total revenue fell by 76.1% from RMB 7.9 million in FY2021 to RMB 1.9 million in FY2022, mainly due to regulatory impacts[33]. - Total revenue from institutional clients decreased by 21.9% from RMB 74.8 million in FY2021 to RMB 58.4 million in FY2022[34]. - The live e-commerce segment generated total revenue of RMB 24.6 million in FY2022, marking it as a new growth business initiated in December 2021[34]. Assets and Liabilities - Total assets decreased to RMB 2,059,393 thousand in fiscal year 2022 from RMB 3,285,318 thousand in fiscal year 2021, reflecting a decline of 37.2%[12]. - Total equity attributable to owners was RMB 1,641,008 thousand in fiscal year 2022, down from RMB 2,008,872 thousand in fiscal year 2021, a decrease of 18.3%[12]. - Non-current assets decreased to RMB 367,912 thousand in fiscal year 2022 from RMB 738,572 thousand in fiscal year 2021, a decline of 50.2%[12]. - Current liabilities were RMB 393,327 thousand in fiscal year 2022, down from RMB 1,042,842 thousand in fiscal year 2021, indicating a reduction of 62.3%[12]. - The company's total liabilities to total assets ratio improved to 20.3% at the end of fiscal year 2022, compared to 38.9% at the end of fiscal year 2021[51]. Operational Focus and Strategy - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[9]. - The company has shifted its strategic focus to new business segments, including live e-commerce, smart learning products, STEAM education, and vocational education[20]. - The company aims to create a high-quality, cost-effective e-commerce platform centered on agricultural products to enhance customer lifestyles[20]. - The live e-commerce business is expected to become a major growth driver for the company, with plans to enhance the live streaming team and create engaging content[28]. - The company continues to explore new market opportunities while developing existing businesses to increase and solidify its market share[29]. Student Enrollment and Spending - In the fiscal year 2022, the total number of paid students decreased by 38.0% to 2,410,000 from 3,892,000 in fiscal year 2021[16]. - The average spending per paid student in the university education segment remained stable at RMB 1,308 in fiscal year 2022, compared to RMB 1,303 in fiscal year 2021[21]. - The number of paid students in the university education segment stabilized at 546,000 in fiscal year 2022, down from 573,000 in the previous period[21]. - The average spending per paid student in the K-12 education segment was RMB 172, reflecting the impact of new regulations and the termination of related services[17]. Cost and Expenses - The total cost of revenue decreased by 51.8% from RMB 1 billion in FY2021 to RMB 500 million in FY2022, mainly due to the termination of the K-12 business[36]. - The gross profit margin for continuing and discontinued operations increased from 29.1% in FY2021 to 46.0% in FY2022, attributed to the cessation of K-12 operations[36]. - Research and development expenses for continuing operations decreased by 47.1% from RMB 121.8 million in FY2021 to RMB 64.4 million in FY2022[42]. - Administrative expenses for continuing operations increased by 44.2% from RMB 148.5 million in FY2021 to RMB 214.1 million in FY2022, primarily due to changes in strategic focus[45]. Cash Flow and Capital Management - As of May 31, 2022, the company's cash and cash equivalents amounted to RMB 547.4 million, a decrease from RMB 1.626 billion on November 30, 2021[51]. - Net cash used in operating activities for fiscal year 2022 was RMB 918.07 million, slightly higher than RMB 913.68 million in fiscal year 2021[52]. - Cash used in investing activities for fiscal year 2022 was RMB 26.37 million, a significant decrease from cash generated of RMB 659.11 million in fiscal year 2021[52]. - Cash used in financing activities for fiscal year 2022 was RMB 45.4 million, primarily due to lease liability repayments[55]. - Capital expenditures for fiscal year 2022 were RMB 20.33 million, a decrease from RMB 118.13 million in fiscal year 2021[56]. - The company had no bank loans or other borrowings during the reporting period, indicating sufficient cash and capital resources for operations and expansion[60]. Corporate Governance - The board of directors consists of seven members, including two executive directors and three independent non-executive directors[64]. - The company has established a compensation committee to formulate the remuneration policy for directors and senior management[86]. - The company adopted the new corporate governance code effective January 1, 2022, enhancing internal control measures and accountability to shareholders[154]. - The audit committee is composed of three independent non-executive directors, ensuring independence from the external auditor[164]. - The company has implemented a diversity policy to enhance the diversity of the board members[168]. Risk Management - The company faces risks related to compliance with Chinese laws, which could significantly impact its business operations and financial performance[105]. - Regulatory and compliance risks are significant due to strict regulations in the internet and education sectors in China, with ongoing developments in relevant laws creating uncertainty[176]. - The company identified several significant risks in its risk management system for the fiscal year 2022, including market competition and innovation risks in the highly fragmented and rapidly developing online education sector[173]. ESG and Stakeholder Engagement - The board of directors is responsible for the overall ESG strategy, performance, and reporting, ensuring compliance with the Hong Kong Stock Exchange guidelines[194]. - The company is committed to identifying and addressing ESG risks and regularly reviews its ESG objectives[194]. - The company prioritizes energy conservation and emission reduction as part of its environmental commitments[198]. - Regular communication channels are established with stakeholders, including periodic reports and investor meetings to ensure transparency[198]. - The company conducts satisfaction surveys to ensure high-quality products and services for customers[198].
东方甄选(01797) - 2022 - 年度财报