SHANGHAI, Dec. 3, 2021 /PRNewswire/ — 4 Seasons Education and learning (Cayman) Inc. (“Four Seasons Schooling” or the “Corporation”) (NYSE: FEDU), a primary Shanghai-based mostly training enterprise, currently introduced that the Business appointed Marcum Bernstein & Pinchuk LLP (“MBP”) as the Company’s independent registered public accounting company for its fiscal 12 months ending February 28, 2022. At the identical time, the Business and Deloitte Touche Tohmatsu Accredited Public Accountants LLP (“Deloitte”) have mutually agreed to terminate Deloitte’s appointment as the Firm’s impartial registered general public accounting company, efficient immediately.
The Company’s selection to switch Deloitte with MBP was accredited by the Audit Committee and the Board of Directors of the Business.
Deloitte was engaged as the Firm’s independent registered community accounting organization due to the fact 2017. Deloitte’s report on the Company’s consolidated monetary statements as of February 29, 2020 and February 28, 2021 and for each individual of the two decades in a period finished February 28, 2021 contained no adverse belief or disclaimer of view and have been not qualified or modified as to uncertainty, audit scope or accounting theory. In the course of the two most modern fiscal a long time ended February 28, 2021, and up to the interim period of time before Deloitte’s dismissal, there were being (i) no disagreements (as described in Merchandise 16F(a)(1)(iv) of Sort 20-F and the similar guidelines thereto) involving the Enterprise and Deloitte on any make a difference of accounting principles or methods, fiscal assertion disclosure, or auditing scope or procedure, and (ii) no “reportable events” (as defined in Merchandise 16F(a)(1)(v) of Type 20-F) other than the product weakness reported in Merchandise 15 of the Firm’s Variety 20-F submitted with the U.S. Securities and Exchange Fee on July 2, 2021.
In the course of the Firm’s two most the latest fiscal years finished February 28, 2021, and any subsequent interim interval prior to the engagement of MBP on December 3, 2021, neither the Enterprise nor any one acting on its behalf consulted with MBP on either (a) the software of accounting principles to a specified transaction, both done or proposed, or the style of audit belief that could be rendered on the Firm’s money statements, and neither a composed report nor oral guidance was presented to the Firm by MBP that MBP concluded was an essential issue viewed as by the Business in achieving a decision as to any accounting, auditing or economical reporting issue, or (b) any make any difference that was the issue of a disagreement, as that phrase is defined in Product 16F(a)(1)(iv) of Form 20-F (and the connected instructions thereto) or a reportable celebration as set forth in Product 16F(a)(1)(v)(A) via (D) of Sort 20-F.
The Enterprise is performing intently with each Deloitte and MBP to make sure a seamless changeover.
The Audit Committee and the Board of Administrators of the Business would like to express their sincere gratitude to Deloitte for its substantial quality products and services rendered to the Business over the previous yrs.
Protected Harbor Statement
This push release is made up of statements of a ahead-wanting character. These statements, which include the statements relating to the Company’s long term fiscal and functioning effects, are made under the “secure harbor” provisions of the U.S. Personal Securities Litigation Reform Act of 1995. You can determine these forward-on the lookout statements by terminology this sort of as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Between other items, management’s quotations and the Business Outlook part comprise ahead-searching statements. These forward-searching statements require recognized and unknown pitfalls and uncertainties and are based mostly on present-day expectations, assumptions, estimates and projections about the Organization and the industry. Prospective threats and uncertainties include, but are not minimal to, all those relating to its ability to entice new college students and keep present college students, its capability to produce a satisfactory discovering practical experience and strengthening their educational overall performance, PRC laws and procedures relating to the instruction business in China, basic financial disorders in China, and the Firm’s means to meet up with the standards necessary to maintain listing of its ADSs on the NYSE or other inventory trade, including its ability to remedy any non-compliance with the NYSE’s continued listing standards. All information delivered in this press release is as of the day hereof, and the Business undertakes no obligation to update any forward-on the lookout statements to replicate subsequent occurring events or situation, or modifications in its expectations, other than as may perhaps be expected by law. Although the Business thinks that the expectations expressed in these forward-hunting statements are sensible, it can not assure you that its expectations will flip out to be appropriate, and buyers are cautioned that genuine benefits may well vary materially from the anticipated benefits. Even more information about dangers and uncertainties confronted by the Business is integrated in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Kind 20-F.
About Four Seasons Education and learning (Cayman) Inc.
Four Seasons Education (Cayman) Inc. is a top Shanghai-primarily based education and learning firm dedicated to offering in depth academic solutions. The Firm’s eyesight is to unlock students’ mental potential as a result of significant high quality and efficient education that can profoundly gain learners. The Firm’s proprietary academic provider choices are developed to cultivate students’ passions and enrich their cognitive and rational contemplating qualities. The Firm’s college is led by a group of professional senior educators, which includes recognized students and award-successful instructors. More than the yrs, the quality of the Firm’s academic providers has been shown by its college student fantastic efficiency.
For trader and media inquiries, be sure to speak to:
In China: 4 Seasons Education and learning (Cayman) Inc. Olivia Li Tel: +86 (21) 6317-6678 E-mail: IR@fsesa.com
The Piacente Team, Inc. Jenny Cai Tel: +86-10-6508-0677 E-mail: fourseasons@tpg-ir.com
In the United States: The Piacente Group, Inc. Brandi Piacente Tel: +1-212-481-2050 E-mail: fourseasons@tpg-ir.com
Global Education ERP Market to Reach $22.2 Billion by 2026
Global market for Education ERP estimated at US$10 Billion in the year 2020, is projected to reach a revised size of US$22.2 Billion by 2026, growing at a CAGR of 13.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over the analysis period.
Solutions, one of the segments analyzed in the report, is projected to grow at a 13{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} CAGR to reach US$16.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Services segment is readjusted to a revised 15.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} CAGR for the next 7-year period. This segment currently accounts for a 28.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} share of the global Education ERP market.
Recent advancements in information technology have equipped educational institutions with new innovative tools for handling their operations. Academic institutions are increasingly adopting ERP solutions for improving their operational effectiveness, which in turn is providing them with a competitive edge.
Traditional data management processes and techniques are being replaced with cost-effective cloud-based ERP solutions, which offer enhanced data control, security, and storage capacity, bringing quantifiable and quick improvements in various administration processes.
In addition, these solutions provide administrators with real-time access to information, thereby enabling them to make well-informed and quick decisions. Rapid changes in business models and rising operational complexity have been posing challenges for academic institutions. The implementation of ERP solutions in academic institutions can help in alleviating the work burden of administrators, owing to the benefits of these solutions in effectively synchronizing and managing multiple business processes.
However, the high cost involved in the implementation of ERP solutions and the easy availability of open-source applications are hampering the widespread adoption of ERP solutions by academic institutions.
The market is poised to witness robust growth over the next few years, driven primarily by an increase in the number of private colleges, rising demand for operational transparency and efficiency in the education sector, and high competition among academic institutions to gain grants for improving the educational quality.
The education ERP market is currently in early development stages, presenting lucrative opportunities for all market participants in the coming years. While quality and innovation of ERP solutions are expected to be key differentiators for larger players, costs and service quality would remain major driving factors for smaller market participants.
At present, the educational system globally has been hit hard by the COVID-19 pandemic that resulted in significant challenges for educational institutions and students. The crisis encouraged a large number of schools and colleges to consider remote learning platforms for uninterrupted education for students along with online management systems for smooth administrative functions.
Online learning platforms enabled teachers to easily reach students and adjust with the work-from-home culture. The technology ensures connectivity between students and faculty for course materials and schedules along with virtual classes.
The pandemic set a perfect landscape for education ERP solutions in various regional markets, where government restrictions resulted in temporarily closure of schools and higher education institutions. The situation prompted a large number of institutions to embrace online or remote education for uninterrupted learning for students.
In addition, various institutions have invested in automated institution management systems including education ERP, learning management tools and student information systems. On the other hand, education institutions have also reduced spending on new services and infrastructure development. Moreover, nationwide lockdowns across several countries created the requirement for institutes to conduct administrative and academic processes virtually, offering a strong boost to the education ERP market in the region.
The service segment holds the largest share of the education ERP market and is expected to maintain its dominance over the next few years. The growth in the services segment is primarily attributed to the rising adoption of technological modules and solutions in academic institutions.
Service providers are increasingly focusing on delivering dedicated services based on specific requirements of educational institutions. The services provide comprehensive functionalities for facilitating the institutions in timely implementing and managing the ERP system. Higher education is projected to maintain a larger share of the market, owing to the rapid changes in the nature of learning and teaching within the higher education sector.
Key Topics Covered:
I. METHODOLOGY
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
Changing Face of Education amid COVID-19
How COVID-19 Sabbatical is Charting Path for Strong Foundation of Digital Learning in Education Space
How Educational ERP Pushes Operational Efficiency
Automation of Routine Tasks
Ensuring Effective Communication
Automated Workflows
Enhanced Data Security
Educational ERP: An Introduction
Select ‘Modules of Education ERP
Market Dynamics
Market Outlook
Key Factors Inhibiting Widespread Adoption of ERP Systems
Wall Road banks are on the lookout to seem into using the flagship cryptocurrency as collateral for institutional money financial loans.
Attainable groundwork for additional built-in electronic asset primary brokerage services in the upcoming.
Top rated-tier financial institutions continue to prefer crypto-relevant goods like futures somewhat than location Bitcoin.
Different top rated-tier banking institutions in the United States are wanting to take Bitcoin as collateral for financial loans. Goldman Sachs and other Wall Road financial institutions may well not dabble in place cryptocurrency marketplaces but could take into account artificial crypto products which includes futures.
Leading banks check out using Bitcoin for loans
Goldman Sachs and other top-tier banking institutions in the US are checking out the plan of taking the world’s greatest cryptocurrency by sector capitalization for loans. According to a new report by CoinDesk, these financial institutions are in search of to do institutional funds financial loans with Bitcoin as collateral.
On the other hand, most banking institutions are not thinking about the custody of spot Bitcoin to make the loans but will consider other crypto-related items such as futures.
The Wall Avenue banks are searching to emulate a few bash repo-style preparations, which is a way of borrowing resources by promoting securities with an arrangement to repurchase them making use of a third-occasion agent.
In accordance to numerous resources, it is an opportunity that lays the basis for more built-in electronic asset prime brokerage products and services in the potential. A supply even further said that Goldman Sachs is performing on finding lending from collateral and the tri-social gathering repo approved.
An additional supply mentioned that some financial institutions could use a 3rd social gathering to create the mortgage, and other folks may well opt for to use their own harmony sheet. The source included that fifty percent a dozen of huge banking institutions have been speaking about Bitcoin-backed loans, and some of them are “in the future 3 to six months category”.
Coinbase and Fidelity Digital Property ended up shown as the probable custodians the banking institutions were being in discussions with. The Place of work of the Comptroller of the Forex (OCC) permitted US banking companies and cost savings associations to custody cryptocurrency for their consumers considering that past year. The Federal Deposit Coverage Company (FDIC) chairman even more said that US regulators are on the lookout into means for classic banking companies to keep Bitcoin.
Bitcoin price aims to reclaim $58,000
Bitcoin rate has experienced weak point as it resorts to the decreased boundary of the ascending parallel channel close to $56,401. Although this area appears to act as dependable help for BTC, the top cryptocurrency have to reclaim $58,045 to secure an uptrend.
The prevailing chart sample implies a bullish outlook for Bitcoin price, with an optimistic goal at $87,912. Even so, BTC ought to kickstart a recovery as the bears have taken more than momentarily.
To escape the vulnerability of slipping into a downtrend, the bellwether cryptocurrency ought to purpose to tag the upcoming spot of resistance at the 61.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Fibonacci retracement degree at $58,045, coinciding with the 21-day Straightforward Relocating Regular (SMA).
BTC/USDT day by day chart
The following hurdle appears at the 50-day SMA at $60,836, then at the 78.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Fibonacci retracement amount at $63,062.
The 1st line of protection for Bitcoin selling price is at the reduce boundary of the governing specialized pattern at $56,401. If BTC fails to maintain earlier mentioned this vital place of assistance, it could fall additional to uncover the 50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} retracement amount at $54,520, corresponding to the 100-working day SMA.
Disclaimer: FXStreet has achieved out to Goldman Sachs to get an official statement about the current developments, but the lender has nevertheless to answer.
CNBC’s Jim Cramer said on Friday that next week’s market events could offer signs of a late December rally after a highly volatile week that saw many smaller technology stocks slip during rising investor concern about the omicron Covid variant.
“I think we may be in for more punishment because the valuations got so out of control, but given the crushing blows we’ve seen so far, there’s reason to believe that we’re getting closer and closer to the light at the end of the tunnel,” Cramer said.
Here’s what the Mad Money host will be watching during the coming week. All revenue and per-share earnings estimates are pulled from FactSet.
Q3 2022 earnings release after the bell; conference call at 5 p.m.
Projected Loss: Loss of 38 cents per share
Projected revenue: $205.3 million
Coupa Software
Q3 2022 earnings release after the bell; conference call at 4:30 p.m.
Projected EPS: 3 cents
Projected revenue: $178.3 million
Cramer said that technology companies MongoDB and Coupa Software have been “crushed” lately as money managers dump risky stocks for safer bets amid omicron worries. “MongoDB and Coupa also find themselves in the unenviable position of having to report right after what will no doubt be one of the very biggest weekends of when we’re going to hear about the omicron variant,” Cramer said.
Tuesday: SentinelOne, Toll Brothers and Stitch Fix
Q3 results after the bell; conference call at 5 p.m. ET Tuesday
Projected Loss: Loss of 18 cents
Projected revenue: $49.6 million
Cramer said cybersecurity company SentinelOne is a good test case for investors to determine if technology stocks have been oversold. “I was shocked to see that this stock had already come down from $76 to $46, for no obvious reason aside from the broader stock market rotation,” Cramer said.
Toll Brothers
Q4 results after the bell; conference call at 8:30 a.m. ET Wednesday
Projected EPS: $2.48
Projected revenue: $2.9 billion
Toll Brothers, the high-end homebuilder, has several tailwinds that have helped it put up “amazing numbers,” Cramer said, including low mortgage rates, strong profit margins, and the hybrid work environment that’s boosting home sales. “Will Toll Brothers be hurt by today’s weaker-than-expected jobs report? I doubt it,” Cramer said.
Stitch Fix
Q1 results after the bell; conference call at 4:30 p.m. ET Tuesday
Projected Loss: Loss of 14 cents
Projected revenue: $571 million
Stitch Fix is more of an apparel play than a tech stock, Cramer contended, but he said next week’s earnings might indicate that it and similar stocks with a heavy digital component have hit their bottom and are ready to rise again.
Q3 results after the bell; conference call at 5 p.m. ET Wednesday
Projected EPS: Loss of 4 cents
Projected revenue: $208.3 million
Cramer also believes that UiPath, a software company specializing in automating repetitive tasks, is a key test case for technology stocks.
Campbell Soup
Q1 results before the bell; conference call at 8 a.m. Wednesday
Projected EPS: 81 cents
Projected sales: $2.28 billion
“Think the world’s coming to an end? All right, then I’ve got something for you” in Campbell Soup, Cramer said on Friday, noting that he sees its performance as more of a leading indicator on slowdown-related names than a reflection on the company’s management.
RH
Q3 results after the close; conference call at 5 p.m. ET Wednesday
Projected EPS: $6.62
Projected revenue: $983 million
“I think CEO Gary Friedman has a long-term view,” Cramer said, adding that in the past, every sell-off in RH shares have “been a reason to buy, not sell.”
Gamestop
Q3 results after the bell; conference call at 5 p.m. ET Wednesday
Projected Loss: Loss of 52 cents
Projected sales: $1.2 billion
Cramer says GameStop is the “king of the meme stocks” despite the fact he hasn’t seen a “real turnaround plan” from the company’s new management. “I can’t justify owning it up here and I think the Wall Street Bets cohort has run out of firepower of late … but there’s tremendous prurient interest here,” Cramer said.
Thursday: Broadcom, Costco, Hormel, Lululemon and Chewy
Q4 results after the bell; conference call at 5 p.m. ET Thursday
Projected EPS: $7.74
Projected revenue: $7.36 billion
Chipmaker Broadcom has been “remarkably consistent in an inconsistent world,” Cramer said.
Costco
Q1 results after the bell; conference call at 5 p.m. ET Thursday
Projected EPS: $2.62
Projected revenue: $54.1 billion
Costco often gets hit after big runs higher, Cramer said, offering investors a buying opportunity.
Hormel
Q4 results before the bell; conference call at 9 a.m. ET Thursday
Projected EPS: 50 cents
Projected revenue: $3.22 billion
Cramer said that Hormel is a “tried and true” name that’s down from its highs despite savvy management moves.
Lululemon
Q3 results after the close; conference call at 4:30 p.m. ET Thursday
Projected EPS: $1.40
Projected revenue: $1.43 billion
Cramer said he believes Lululemon will turn in a “fantastic” report next Thursday, making it an aggressive play.
Chewy
Q3 results after the close; conference call at 5 p.m. ET Thursday
Projected Loss: Loss of 3 cents
Projected revenue: $2.21 billion
“I also want to hear from Chewy,” Cramer said. “The online pet food retailer that’s seen its stock get cut in half. … You get the pattern here? It’s called a bear market, people: Anything digitized is getting pulverized.”
There are a number of things you can do as an entrepreneur to set both of those you and your organization up for accomplishment at all stages of business enterprise expansion and growth.
I spoke with Rob Moore, the Disruptive Entrepreneur, CEO and cofounder of the UK’s most significant house schooling organization, and host of two of the UK’s leading small business podcasts to discover much more about how he realized his achievement. He shared the techniques that served him develop into a multi-millionaire by the age of 30 and founder of many successful firms. Here’s his information:
Embrace failure.
Failure and rejection are just a part of business. What differentiates thriving small business entrepreneurs from the unsuccessful kinds is regardless of whether they embrace these two factors or do almost everything in their energy to prevent them. “If you examine any person who’s successful, whether they are a billionaire or at the leading of their discipline, you see some popular qualities. One particular of those is that no a person who is thriving prevented failure or rejection,” states Moore. Achievement arrives from welcoming failure with an open up brain and working with it as an option to learn and mature.
Stability guidance from some others with your very own interior knowledge.
There’s a time and place for exterior guidance, but when it comes to the really hard conclusions, it is ultimately up to you. Don’t do something just since anyone has advised you that they assume it’s the appropriate point for you to do, but as an alternative contemplate their advice in addition to your internal wisdom and instinct. “When it will come to strategies and techniques, you want to stand on the shoulders of giants, and you want to model the attributes of the greats. But when it comes to your passion or your vision, listen to your internal contacting, not external comments,” clarifies Moore. It’s vital to uncover the proper harmony in between the external and the inside, the tips from mentors and your very own inner knowledge.
Do not chase fame and fortune.
Fame and fortune should not be your inspiration for undertaking a thing, advises Moore. “Fame and fortune are not the reason of what you do – they’re the consequence for doing it nicely,” he says. “You should really build helpful products and services and be a valuable human staying or corporation to as lots of men and women as possible. Individuals will by no means give you cash if they feel you want it for fame and fortune. People will give you cash if you’ve acquired some thing beneficial and useful.”
Moore also details out that fame and fortune are not a good way to measure your good results. “You won’t be able to measure on your own by your followers, your supporters, or your fame and your fortune. You have to measure oneself by your value,” he advises. Your value comes from the effect you have and your capability to support as many individuals as doable.
Don’t get distracted by shiny item syndrome.
It can be straightforward to get distracted alongside the way as you’re developing or rising a enterprise by opportunities that guarantee a swift injection of hard cash or instantaneous virality and fame. “Don’t question what is actually heading to make the most revenue in the shortest total of time or what is the very best stylish company product suitable now that can make me loaded quick? These are just interruptions,” claims Moore, and more normally than not all those issues will only give short phrase gains somewhat than extensive expression gain. It’s essential that you appraise each individual possibility for its opportunity for longevity, somewhat than how eye-catching it is in the second.
Discover the appropriate balance of selfless and selfish.
Moore states that in any small business pursuit, an equal equilibrium of selfless and egocentric is exactly where optimum advancement happens. “When you get the good equilibrium of each, you have what’s identified as fair trade, and truthful trade is sustainable and scalable,” he points out. Truthful exchange is when you make a reasonable financial gain and customers feel that they get a good benefit, trying to keep the scales balanced. You are not getting egocentric by ruthlessly overcharging shoppers to make a gain and you aren’t staying extremely selfless by providing matters away at these types of a very low cost level that you are basically treading water when it will come to cashflow.
Choose pitfalls.
Making a organization is inherently risky, and you have to be keen to take risks in order to succeed. There’s 1 caveat when it comes to chance getting, on the other hand, and it is that your risks must be calculated. Really do not just jump into anything devoid of examining the potential for both equally good results and failure, as very well as price chance and time determination.
I’ll leave you with a few much more highly effective words and phrases of knowledge from Moore – “If you you should not danger anything, you threat almost everything.”
BEIJING, Dec. 3, 2021 /PRNewswire/ — China Liberal Education Holdings Limited (Nasdaq: CLEU) (“China Liberal”, or the “Company”, or “we”), a China-based company that provides smart campus solutions and other educational services, today announced its financial results for the first six months of fiscal year 2021.
Ms. Ngai Ngai Lam, Chairwoman and CEO of China Liberal, commented, “We still delivered respectable results in the first half of the fiscal year 2021, although the ongoing uncertainties associated with the COVID-19 pandemic caused many Chinese universities and colleges to hold off on their ‘smart campus’ project plans. Through our efforts and dedication, we achieved highly resilient financial results while prioritizing our customers during the pandemic. For the first half of fiscal year 2021, our revenue decreased by 18.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year to $1.85 million from $2.27 million for the same period last year. However, our gross profit reached $1.37 million, an increase of 74.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from $0.79 million for the same period of last year, and our gross margin was 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, a year-over-year increase of 39.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from 34.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same period of last year. We are also excited about our business progress of integration of enterprises and vocational education business(tailored job readiness training services). To address the actual needs of regional economic development and industrial upgrading and transformation, we provided colleges and universities with school-enterprise integrated education solutions. We strived to establish a talent training system and a comprehensive platform, providing talent trainings and co-op opportunities for students. In addition, our self-developed and patented all-in-one teaching machine, AI-Space machine, has been recognized by the market and the industry and installed in several colleges and universities across China, including Beijing Foreign Studies University, Beijing Language and Culture University, and Straits Institute of Minjiang University, laying a solid foundation for our future potential revenue growth. We believe that we are well-positioned for the future with our brand awareness, innovative technologies, and loyal customer base.”
First Six Months of Fiscal Year 2021 Financial Highlights
Revenue decreased by 18.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year to $1.85 million for the six months ended June 30, 2021 from $2.27 million for the same period last year.
Gross profit increased by 74.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $1.37 million for the six months ended June 30, 2021 from $0.79 million for the same period last year.
Gross margins were 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 34.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the six months ended June 30, 2021 and 2020, respectively.
Income from operations was $0.30 million for the six months ended June 30, 2021, compared to loss from operations of $0.11 million for the same period last year. Operating profit margin was 16.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the six months ended June 30, 2021, compared to operating loss margin of 5.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same period last year.
Net income was $0.23 million for the six months ended June 30, 2021, compared to net loss of $0.08 million for the same period last year.
Basic and diluted earnings per share were $0.03 for the six months ended June 30, 2021, compared to basic and diluted loss per share of $0.02 for the same period last year.
First Six Months of Fiscal Year 2021 Financial Results
Revenue
Revenue decreased by 18.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year to $1.85 million for the six months ended June 30, 2021 from $2.27 million for the same period last year. The decrease in revenue was mainly driven by decreased revenue from technological consulting services for smart campus solutions as the Company did not enter into new large “smart campus” project contract with Chinese universities/ colleges during the six months ended June 30, 2021 since continued uncertainties associated with the COVID-19 pandemic caused many Chinese universities/colleges to hold off on their “smart campus” project plans.
For the six months ended June 30, 2021, revenue from sino-foreign jointly managed academic programs increased by $0.16 million, or 12.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $1.42 million, from $1.26 million for the same period last year. This increase was primarily attributed to an increase in the number of students by 173 or 6.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to 2,841 students in six months ended June 30, 2021, from 2,668 students in six months ended June 30, 2020. Furthermore, the increase is also attributable to an approximately 9.03{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} positive impact from foreign currency fluctuation when the average exchange rate used in converting RMB into USD increased from $1 to RMB 7.0416 in the six months ended June 30, 2020 to $1 to RMB 6.4587 in the six months ended June 30, 2021. The increase is partially offset by a 3.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease in average tuition fees. The decrease in average tuition fee was mainly caused by change in student mix enrolled in different academic programs with the universities/ colleges.
Revenue from technological consulting services for smart campus solutions decreased by $0.59 million, or 63.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $0.34 million for the six months ended June 30, 2021, from $0.93 million for the same period last year. The decrease was primarily because the Company did not obtain smart campus projects of large size during the six months ended June 30, 2021. In addition, the continued uncertainties associated with COVID-19 caused many Chinese universities/colleges to hold their “smart campus” project plans.
Revenue from overseas study consulting services decreased by $0.04 million, or 64.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $0.03 million for the six months ended June 30, 2021, from $0.07 million for the same period last year. The decrease was mainly due to the impact of the COVID-19 pandemic which caused certain countries closed its borders and imposed travel restrictions. As a result, the number of students interested in seeking overseas education reduced significantly. A portion of our revenue from overseas study consulting services was recognized when the students received offers and obtained appropriate visas. For the six months ended June 30, 2021, none of the students who participated in overseas consulting services received offers or visas as they have not yet completed their trainings and studies compared to 11 students who received school offers and obtained visas in the same period in 2020.
Revenue from tailored job readiness training services was $0.07 million for the six months ended June 30, 2021, compared with nil for the same period last year. The Company provided tailored job readiness training services to more than 130 students for the six months ended June 30, 2021.
Cost of Revenue
Cost of revenue decreased by $1.00 million, or 67.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $0.48 million for the six months ended June 30, 2021, from $1.48 million for the same period last year, primarily due to the decreased hardware costs of $1.02 million associated with the smart campus projects.
Gross Profit
Gross profit increased by $0.58 million, or 74.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $1.37 million for the six months ended June 30, 2021, from $0.79 million for the same period last year, while gross profit margin increased by 39.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the six months ended June 30, 2020, from 34.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same period last year. The increase in gross profit and gross margin was primarily due to decreased hardware costs associated with the Company’s technological consulting service projects.
Operating Expenses
Selling expenses decreased by $53,872, or 41.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $76,593 for the six months ended June 30, 2021, from $130,465 for the same period last year. The decrease in selling expenses was primarily attributable to the decrease in the rental and office expenses and depreciation expenses by $54,679 when the Company relocated to a smaller office space.
General and administrative expenses increased by $224,833, or 29.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $995,451 for the six months ended June 30, 2021, from $770,618 for the same period last year, primarily due to an increase in salaries and welfares expenses of $74,630 resulting from increased number of administrative employees, an increase in professional services fees of $57,300, an increase in share-based compensation to independent directors of $53,250 and an increase in independent director compensation of $28,419.
Interest Income
Interest income decreased by $22,797 or 27.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $59,973 for the six months ended June 30, 2021, from $82,770 for the same period last year. In connection with the Company’s technological consulting services for smart campus projects, the Company recognized financing component resulted from a timing difference between when control is transferred and when the Company collected cash consideration from the customer. For the six months ended June 30, 2021 and 2020, the Company recognized $56,511 and $79,907 interest income in connection with the aforementioned financing component, respectively.
Other Expense
Other expense was $7,249 and $907 for the six months ended June 30, 2021 and 2020, respectively, the increase was due to increased bank charges.
Income Tax Provision
Income tax provision was $0.12 million for the six months ended June 30, 2021, increased from $0.05 million for the same period of last year due to higher taxable income.
Net Income (Loss)
Net income was $0.23 million for the six months ended June 30, 2021, compared to a net loss of $0.08 million for the same period last year. Basic and diluted earnings per share were $0.03 for the six months ended June 30, 2021, compared to basic and diluted loss per share of $0.02 for the same period last year.
Financial Condition
During the six months ended June 30, 2021, the Company had negative cash flow from operations. As of June 30, 2021, the Company had cash of approximately $33.7 million and had positive working capital of approximately $40.8 million. The Company’s liquidity is influenced by the level of its operations, the numerical volume and dollar value of its sales contracts, the progress of execution on its customer contracts, and the timing of accounts receivable collections. Management believes that the Company’s current cash as of June 30, 2021 will be sufficient to meet its working capital needs for at least the next 12 months from the date of the Company’s interim financial statements are issued.
As of June 30, 2021, the Company had cash of $33.70 million, compared to $5.01 million as of December 31, 2020.
Net cash used in operating activities was $1.89 million for the six months ended June 30, 2021, compared to $0.94 million for the same period last year.
Net cash provided by investing activities was $1.45 million for the six months ended June 30, 2021, compared net cash used in investing activities of $0.01 million for the same period last year.
Net cash provided by financing activities was $29.06 million for the six months ended June 30, 2021, compared to $5.50 million for the same period last year.
The Company intends to finance its future working capital requirements and capital expenditures from cash generated from operating activities. However, the Company may seek additional financings, to the extent required, and there can be no assurances that such financing will be available on favorable terms or at all.
COVID-19
The Company’s operations may be further affected by the ongoing COVID-19 pandemic. For the six months ended June 30, 2021, the Company’s revenue from sino-foreign jointly managed academic programs was not significantly impacted because Chinese universities/colleges have resumed on-site instruction since May 2020 and the number of students enrolled in the Company’s sino-foreign jointly managed education programs with two colleges increased during the 2021 academic school year. The total enrolled number of students increased by 14{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} as compared to the same period of last year. The teaching services that the Company has been providing to students have returned to normal, and no dropout has been reported to the Company during the six months ended June 30, 2021. However, due the impact of COVID-19, the internal payment processes of the partnering schools were temporarily delayed. As a result, the Company and these partnering schools mutually agreed to extend the tuition payment term by three to six months. The Company does not believe such delay will result in any collectability risk and the entire tuition receivable balance is expected to be fully received but only slightly later than a typical operating year. Furthermore, this temporary delay in tuition payment does not represent a change in the Company’s cooperation model with these partnering schools and the Company does not expect to incur further tuition payment delays in the future.
The continued uncertainties associated with the COVID-19 have caused many Chinese universities/ colleges to temporarily hold off on their “smart campus” project construction plans and accordingly the Company did not obtain new large “smart campus” project contract during the six months ended June 30, 2021, which led to a decrease in the Company’s revenue from technological consulting and supporting services during current period. Additionally, the COVID-19 pandemic continues to have a negative impact over the Company’s study abroad consulting services. A portion of the Company’s revenue from overseas study consulting services were recognized when students received offers and obtained appropriate visas. However, due to the COVID-19 pandemic, certain countries closed their borders and imposed travel restrictions. For the six months ended June 30, 2021, none of the students receiving overseas consulting services received offers or visas, compared to 11 students who received school offers and obtained visas in the same period in 2020. Due to the uncertainties around international travels, it is expected that the COVID-19 pandemic may continue to result in students being restricted from pursuing their overseas education in the near terms and may have further negative impact over the oversea study consulting service revenue stream.
About China Liberal Education Holdings Limited
China Liberal, headquartered in Beijing, is an educational services provider in China. It provides a wide range of services, including those under sino-foreign jointly managed academic programs; overseas study consulting services; technological consulting services for Chinese universities to improve their campus information and data management system and to optimize their teaching, operating and management environment, creating a “smart campus”; and tailored job readiness training to graduating students. For more information, please visit the company’s website at ir.chinaliberal.com.
Forward-Looking Statements
This document contains forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s expectations and projections about future events, which the Company derives from the information currently available to the Company. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review risk factors that may affect its future results in the Company’s registration statement and in its other filings with the U.S. Securities and Exchange Commission.
Investor Relations Contact
China Liberal Education Holdings Limited Email:ir@chinaliberal.com
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