25.11.2024 - Page 11 of 15 - NEW STOCKBURGER

Super Hi Reports Unaudited Financial Results for the Third Quarter of 2024

25.11.2024 by admin

SINGAPORE, Nov. 25, 2024 (GLOBE NEWSWIRE) — Super Hi International Holding Ltd. HDL (“Super Hi” or the “Company”), a leading Chinese cuisine restaurant brand operating Haidilao hot pot restaurants in the international market, today announced its unaudited financial results for the third quarter of FY2024 ended September 30, 2024.

Third Quarter 2024 Highlights

Revenue was US$198.6 million, representing an increase of 14.6% from US$173.3 million in the same period of 2023.
In the third quarter of 2024, the Company maintained its existing restaurant footprint with no new openings. The Company temporarily closed 1 restaurant in Southeast Asia in anticipation to relaunch the restaurant as a secondary branded restaurant in the near future. The total number of Haidilao restaurants as of September 30, 2024 was 121, reflecting a net increase of 6 since December 31, 2023.
Total table turnover rate¹ was 3.8 times per day, compared to 3.7 times per day in the same period of 2023.
Had over 7.4 million total guest visits, representing an increase of 4.2% from 7.1 million in the same period of 2023.
Same-store sales growth² was 5.6%.
Income from operation margin³ was 7.5%, compared to 5.7% in the same period of 2023.

Ms. Yang Lijuan, CEO & Executive Director of Super Hi, commented, “In the third quarter of 2024, we recorded a quarterly revenue of US$198.6 million, reflecting a 14.6% year-over-year growth. Our income from operation margin³ was 7.5%, increasing by 1.8 percentage points from the same period of the last year. This growth stems not only from the increasing influence of our brand but also from the dedication of our entire team in elevating customer experience, broadening our customer reach, and perfecting our operational execution across all consumer scenarios. At the same time, we will remain focused on enhancing our core competencies across supply chain optimization, innovative product development, strategic brand building, and digital transformation to drive superior restaurant performance.”

Third Quarter 2024 Financial Results
Revenue was US$198.6 million, representing an increase of 14.6% from US$173.3 million in the same period of 2023.

Revenue from Haidilao restaurant operations was US$190.9 million, representing an increase of 14.5% from US$166.7 million in the same period of 2023. The increase was mainly driven by (i) ongoing business expansion and increased brand influence; (ii) continuous efforts to increase guest visits and table turnover rate; and (iii) an increase in average spending per guest.
Revenue from delivery business was US$2.6 million, representing an increase of 8.3% from US$2.4 million in the same period of 2023, primarily due to enhanced partnerships with local delivery platforms.
Revenue from other business was US$5.1 million, representing an increase of 21.4% from US$4.2 million in the same period of 2023, driven by the growing popularity for hot pot condiment products and Haidilao-branded and sub-branded food products among local customers and retailers.

Raw materials and consumables used were US$65.5 million, representing an increase of 9.9% from US$59.6 million in the same period of 2023. As a percentage of revenue, raw materials and consumables used decreased to 33.0% in the third quarter of 2024 from 34.4% in the same period of 2023.

Staff costs were US$65.8 million, representing an increase of 15.2% from US$57.1 million in the same period of 2023. As a percentage of revenue, staff costs accounted for 33.1%, compared to 32.9% in the same period of 2023. The increase was primarily due to (i) an increase in the number of employees in line with restaurant network expansion compared to the same period of 2023, and an increase in guest visits and table turnover rate; (ii) the Company’s operational strategy of ensuring sufficient number of employees to provide superior customer experience; and (iii) an increase in statutory minimum wages in several countries.

Income from operations⁴ was US$14.9 million, representing an increase of 52.0% from US$9.8 million in the same period of 2023. Income from operation margin³ was 7.5%, compared to 5.7% in the same period of 2023. This increase in income from operations was mainly attributable to (i) an increase in revenue and table turnover rate as described above; and (ii) an improvement in operational efficiency, especially through optimization of the global supply chain and enhanced cost control.

Profit for the period was US$37.7 million, compared to a loss of US$1.4 million in the same period of 2023. This change was mainly due to (i) an increase in revenue driven by ongoing business expansion and continuous efforts in increasing guest visits and table turnover rate; (ii) an improvement in operational efficiency; and (iii) in addition to the aforementioned factors that affect the Company’s income from operations, an increase in net foreign exchange gains of US$34.6 million compared to the same period of 2023.

Basic and diluted net profit per share were both US$0.06, compared to an approximating nil in the same period of 2023.

________________________
_{¹ Calculated by dividing the total tables served for the period by the product of total Haidilao restaurant operation days for the period and average table count during the period.}
_{² Refers to the year-over-year growth of the aggregate gross revenue from Haidilao restaurant operations at the Company’s same stores for the period indicated.}
_{³ Calculated by dividing income from operation⁴ by total revenue.}
_{⁴ Calculated by excluding interest income, finance costs, unrealized foreign exchange differences arising from remeasurement of balances which are not denominated in functional currency, net gain arising on financial assets at fair value through profit or loss and income tax expense from (loss) profit for the period.}

Operational Highlights

Haidilao Restaurant Performance
The following table summarizes key performance indicators of Haidilao’s restaurants for the quarters indicated.

	As of/For the Three Months Ended September 30,
	2024	2023
Number of restaurants
Southeast Asia	73	69
East Asia	18	17
North America	20	18
Others⁽¹⁾	10	10
Total	121	114

Total guest visits (million)
Southeast Asia	5.2	4.9
East Asia	0.8	0.8
North America	0.9	0.8
Others⁽¹⁾	0.5	0.6
Overall	7.4	7.1

Table turnover rate⁽²⁾ (times per day)
Southeast Asia	3.6	3.5
East Asia	4.3	3.9
North America	3.9	3.9
Others⁽¹⁾	3.8	3.9
Overall	3.8	3.7

Average spending per guest⁽³⁾(US$)
Southeast Asia	20.4	18.7
East Asia	29.2	26.0
North America	43.5	41.2
Others⁽¹⁾	43.0	38.8
Overall	25.8	23.7

Average daily revenue per restaurant⁽⁴⁾ (US$ in thousands)
Southeast Asia	15.7	14.7
East Asia	17.7	13.0
North America	21.5	20.4
Others⁽¹⁾	24.3	23.2
Overall	17.7	16.1

Notes:
(1) Others include Australia, the United Kingdom, and the United Arab Emirates.

(2) Calculated by dividing total number of tables served for the periods by the product of total Haidilao restaurant operation days for the period and average table count during the period in the same geographic region.

(3) Calculated by dividing gross revenue of Haidilao restaurant operation for the periods by total guests served for the periods in the same geographic region.

(4) Calculated by dividing the revenue of Haidilao restaurant operation for the periods by the total Haidilao restaurant operation days of the periods in the same geographic region.

Same-Store Sales
The following table sets forth details of the Company’s same store sales for the quarters indicated.

	As of/For the Three Months Ended September 30,
	2024	2023

Number of Same Stores⁽¹⁾
Southeast Asia	65
East Asia	13
North America	18
Others⁽⁵⁾	10
Total	106

Same Store Sales⁽²⁾(US$ in thousands)
Southeast Asia	96,839	93,131
East Asia	20,374	16,907
North America	36,096	34,635
Others⁽⁵⁾	22,449	21,773
Total	175,758	166,446

Average same store sales per day⁽³⁾(US$ in thousands)
Southeast Asia	16.2	15.6
East Asia	17.1	14.1
North America	21.8	20.9
Others⁽⁵⁾	24.4	23.7
Total	18.0	17.1

Average same store table turnover rate⁽⁴⁾(times/day)
Southeast Asia	3.6	3.6
East Asia	4.3	4.0
North America	4.0	3.9
Others⁽⁵⁾	3.8	3.9
Total	3.7	3.7

Notes:

(1) Includes restaurants that commenced operations prior to the beginning of the periods under comparison and opened for more than 75 days in the third quarter of 2023 and 2024, respectively.

(2) Refers to the aggregate gross revenue from Haidilao restaurant operation at the Company’s same stores for the periods indicated.

(3) Calculated by dividing the gross revenue from Haidilao restaurant operation for the periods by the total Haidilao restaurant operation days at the Company’s same stores for the periods.

(4) Calculated by dividing the total tables served for the periods by the product of total Haidilao restaurant operation days for the period and average table count at the Company’s same stores during the periods.

(5) Others include Australia, the United Kingdom, and the United Arab Emirates.

About Super Hi
Super Hi operates Haidilao hot pot restaurants in the international market. Haidilao is a leading Chinese cuisine restaurant brand. With roots in Sichuan from 1994, Haidilao has become one of the most popular and largest Chinese cuisine brands in the world. With over 30 years of brand history, Haidilao is well-loved by guests for its unique dining experience — warm and attentive service, great ambiance and delicious food, standing out among global restaurant chains, which has made Haidilao restaurants into a worldwide cultural phenomenon. Haidilao has been ranked as one of the world’s most valuable restaurant brands for six consecutive years since 2019, earning the title of “World’s Strongest Restaurant Brand” for 2024 (Brand Finance). As of September 30, 2024, Super Hi had 121 self-operated Haidilao restaurants in 13 countries across four continents, making it the largest Chinese cuisine restaurant brand in the international market in terms of number of countries covered by self-operated restaurants.

Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Super Hi may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in announcements, circulars or other publications made on the website of The Stock Exchange of Hong Kong Limited (the “SEHK”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Super Hi’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Super Hi’s operations and business prospects; future developments, trends and conditions in the industry and markets in which Super Hi operates; Super Hi’s strategies, plans, objectives and goals and Super Hi’s ability to successfully implement these strategies, plans, objectives and goals; Super Hi’s ability to maintain an effective food safety and quality control system; Super Hi’s ability to continue to maintain its leadership position in the industry and markets in which Super Hi operates; Super Hi’s dividend policy; Super Hi’s capital expenditure plans; Super Hi’s expansion plans; Super Hi’s future debt levels and capital needs; Super Hi’s expectations regarding the effectiveness of its marketing initiatives and the relationship with third-party partners; Super Hi’s ability to recruit and retain qualified personnel; relevant government policies and regulations relating to Super Hi’s industry; Super Hi’s ability to protect its systems and infrastructures from cyber-attacks; general economic and business conditions globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Super Hi’s filings with the SEC and the announcements and filings on the website of the SEHK. All information provided in this press release is as of the date of this press release, and Super Hi does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contacts
Investor Relations
Email: superhi_ir@superhi-inc.com
Phone: +1 (212) 574-7992

Public Relations
Email: media.hq@superhi-inc.com

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	For the three months ended September 30,
	2024		2023
	USD’000		USD’000


Revenue	198,616		173,252
Other income	2,081		384
Raw materials and consumables used	(65,460	)	(59,625	)
Staff costs	(65,833	)	(57,085	)
Rentals and related expenses	(5,366	)	(5,349	)
Utilities expenses	(7,494	)	(6,716	)
Depreciation and amortization	(20,378	)	(17,767	)
Travelling and communication expenses	(1,515	)	(1,552	)
Other expenses	(17,118	)	(16,793	)
Other gains and losses – net	25,851		(6,575	)
Finance costs	(2,164	)	(1,816	)
Profit before tax	41,220		358
Income tax expense	(3,564	)	(1,760	)
Profit (Loss) for the period	37,656		(1,402	)

Other comprehensive income
*Item that may be reclassified subsequently* *to profit or loss:*
Exchange differences arising on translation of foreign operations	(13,586	)	3,019
Total comprehensive income for the period	24,070		1,617

Profit (Loss) for the period attributable to:
Owners of the Company	37,724		(1,390	)
Non-controlling interests	(68	)	(12	)
	37,656		(1,402	)

Total comprehensive income attributable to:
Owners of the Company	24,138		1,629
Non-controlling interests	(68	)	(12	)
	24,070		1,617

Profit (Loss) Earnings per share
Basic and diluted (USD)	0.06		(0.00	)

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	As at September 30,	As at December 31,
	2024	2023
	USD’000	USD’000

Non-current Assets
Property, plant and equipment	163,777	168,724
Right-of-use assets	166,989	167,641
Intangible assets	287	402
Deferred tax assets	2,998	1,995
Other receivables	1,960	1,961
Prepayment	303	295
Rental and other deposits	19,561	16,903
	355,875	357,921

Current Assets
Inventories	32,606	29,762
Trade and other receivables and prepayments	28,214	29,324
Financial assets at fair value through profit or loss	28,834	–
Rental and other deposits	2,708	3,882
Pledged bank deposits	3,035	3,086
Bank balances and cash	215,162	152,908
	310,559	218,962

Current Liabilities
Trade payables	33,602	34,375
Other payables	35,559	34,887
Amounts due to related parties	1,367	842
Tax payable	3,606	9,556
Lease liabilities	41,194	38,998
Contract liabilities	9,438	8,306
Provisions	2,280	1,607
	127,046	128,571

Net Current Assets	183,513	90,391

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	As at September 30,			As at December 31,
	2024			2023
	USD’000			USD’000

Non-current Liabilities
Deferred tax liabilities		7,076		1,347
Lease liabilities		155,799		163,947
Contract liabilities		3,035		3,098
Provisions		12,571		7,799
		178,481		176,191

Net Assets		360,907		272,121


Capital and Reserves
Share capital		3		3
Shares held under share award scheme		*		*
Share premium		550,593		494,480
Reserves		(191,590	)	(224,397	)
Equity attributable to owners of the Company		359,006		270,086
Non-controlling interests		1,901		2,035
Total Equity		360,907		272,121

* Less than USD1,000

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the three months ended September 30,
	2024		2023
	USD’000		USD’000

Net cash from operating activities	40,699		19,911
Net cash from (used in) investing activities	41,311		(52,921	)
Net cash used in financing activities	(11,440	)	(10,022	)
Net increase (decrease) in cash and cash equivalents	70,570		(43,032	)
Cash and cash equivalents at beginning of the period	140,659		118,936
Effect of foreign exchange rate changes	3,933		(633	)
Cash and cash equivalents at end of the period	215,162		75,271

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Money market account rates today, November 25, 2024 (earn up to 5.01% APY)

25.11.2024 by admin

A money market account (MMA) can be an attractive option for savers who want a safe place to store their funds. MMAs often come with higher interest rates than regular savings accounts, allowing your money to grow more quickly. Plus, they typically include features like check-writing privileges and debit cards, which make it easy to withdraw money as needed.

Not sure where to find the best money market account rates today? Read on to find out which banks have the best offers.

In general, money market accounts offer better interest rates than traditional savings accounts. Still, rates vary widely across financial institutions. That’s why it’s important to shop around and compare rates before opening an account.

In fact, some of the top accounts are currently offering upwards of 5% APY. Since these rates may not be around much longer, consider opening a money market account now to take advantage of today’s high rates.

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Money market accounts have some of the highest interest rates we’ve seen in more than a decade thanks to recent interest rate hikes by the Federal Reserve. Even so, the national average interest rate for money markets is fairly low (0.60%, according to the FDIC) compared to the top offers available.

The Fed is also expected to lower its target rate again later this year, which means now might be the last chance for savers to take advantage of today’s high rates. Be sure to shop around and choose an account with a competitive rate.

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25.11.2024 by admin

FORT LAUDERDALE, FL — November 25, 2024 – Duke Robotics Corp DUKR (UASUSDR (“Duke Robotics” or the “Company”), a leader in advanced robotics technology and autonomous drone solutions, is pleased to announce initial revenue generation from its previously reported agreement with the Israel Electric Corporation (“IEC”) for high-voltage insulator washing services using the Company’s innovative IC Drone (the “IEC Agreement”). The IEC Agreement represents a significant milestone, transitioning Duke Robotics from development to active service and revenue generation within the civilian sector.

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About Duke Robotics Corp.

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For more information about Duke Robotics Corp (Previously UAS Drone Corp) please visit www.dukeroboticsys.com or view documents filed with the Securities and Exchange Commission at www.sec.gov.

Forward-Looking Statements

This press release contains forward-looking statements. Words such as “future” and similar expressions, or future or conditional verbs such as “will,” are intended to identify such forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on our beliefs, assumptions, and information currently available to us. For example, we are using forward-looking statements when we discuss the global expansion of our services, the expected revenue from the IEC Agreement, its plans to offer its services to utility companies worldwide, and its future growth and commitment to pioneering innovative applications for drone technology in the civilian sector and advancing sustainable solutions in utility maintenance. Our actual results may differ materially from those expressed or implied due to known or unknown risks and uncertainties. These include, but are not limited to, risks related to the successful implementation of the IEC agreement, continued development and adoption of our products, fluctuations in foreign currency exchange rates, and competition from technological advances. For additional information on these and other risks and uncertainties, please see our filings with the Securities and Exchange Commission, including the discussion under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and any subsequent filings with the Securities and Exchange Commission. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Compay Contact:

Duke Robotics Corp
Yossef Balucka, CEO
invest@dukeroboticsys.com

Capital Markets & IR:

ARX | Capital Markets Advisors
North American Equities Desk
DUKE@arxadvisory.com

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25.11.2024 by admin

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How Tim Cook's Strategy To Win Over Trump Gave Apple A Competitive Edge, And Why Sundar Pichai, Mark Zuckerberg And Others Might Be Following His Playbook

25.11.2024 by admin

Apple Inc. AAPL CEO Tim Cook’s approach to building a relationship with Donald Trump during his presidency reportedly gave Cupertino unique advantages over competitors. Other tech leaders may now be taking notes.

What Happened: A report by The Wall Street Journal highlights how Cook navigated Trump’s administration with a direct, focused strategy.

Cook often bypassed lobbyists and government relations executives, opting instead for one-on-one meetings and phone calls with Trump.

He would focus on singular, data-driven points in discussions to influence policy in Apple’s favor.

This approach reportedly helped Apple avoid some of the harsher impacts of Trump’s trade tariffs in 2019 and positioned the company to benefit from the administration’s 2017 tax reforms.

Cook also strategically aligned Apple’s interests with Trump’s agenda, ensuring mutual benefits. For instance, he didn’t refute Trump’s claim of credit for an Austin manufacturing plant that was neither new nor owned by Apple.

The report noted that doing so allowed Trump to appear successful while maintaining Apple’s goodwill.

Leaders of other major companies, including Alphabet Inc. GOOG GOOGL CEO Sundar Pichai and Meta Platforms, Inc.’s META Mark Zuckerberg are reportedly employing similar strategies.

According to the report, executives from Boeing Co. BA and FedEx Corp. FDX have also attempted direct communication with Trump.

Meanwhile, some have reportedly explored leveraging connections through the Department of Government Efficiency (DOGE), a role Trump assigned to Elon Musk after the Tesla Inc. CEO’s vocal support for his campaign.

Why It Matters: Trump previously said that Pichai updated him on trending Google searches and Zuckerberg praised his response to an assassination attempt, showing their efforts to establish rapport.

Since Trump’s victory in the 2024 U.S. Presidential election, both the stock market and the cryptocurrency sector have experienced significant growth.

The S&P 500 has increased by 3.22%, rising from 5,782 on Nov. 5 to 5,969 as of Friday’s close. The SPDR S&P 500 ETF SPY which tracks the S&P 500 Index has had a similar momentum since Trump’s victory, according to data from Benzinga Pro.

During the same period, NASDAQ has risen 2.71% to reach 20,776.23. The Invesco QQQ Trust QQQ which tracks the performance of the Nasdaq-100 Index gained 2.75%.

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Key Takeaways from Market Study:

Global recycled plastic resins market will grow at a CAGR of 8.5%, reaching US$ 109.4 billion by the end of 2034.
North America will expand at a CAGR of 8.8% from 2024 to 2034, capturing 24.1% of the market share in 2024 and offering an absolute opportunity of US$ 15.4 billion.
East Asia will account for 31.6% of market share in 2024, generating an absolute dollar opportunity of US$ 19.6 billion between 2024 and 2034.
Between 2024 and 2034, by material type the Polyethylene Terephthalate (PET) are expected to produce an absolute dollar opportunity US$ 19.3 billion.
With a 41.8% market share, by application, packaging segment is estimated to be worth US$ 20.2 billion in 2024.

“Increasing environmental regulations, shift toward sustainable technologies and growing environmental awareness have contributed to the growth of the recycled plastic resins market” says a Fact.MR analyst.

Leading Players Driving Innovation in the Recycled Plastic Resins Market:

Dow; Veolia; Indorama Ventures; Suez; Plastipak Holdings, Inc; Loop Industries; Clean Tech UK Ltd; KW Plastics; CarbonLITE Industries; Custom Polymers; Ultra-Poly Corporation; MBA Polymers Inc; Evergreen Plastics Ltd; Envision Plastics; Merlin Plastics; Alpek Polyester

Market Development:

Key companies involved in recycled plastic resins market are Veolia, Indorama Ventures, Suez, Plastipak Holdings, Inc., Loop Industries, Clean Tech UK Ltd., KW Plastics, CarbonLITE Industries, Custom Polymers, Ultra-Poly Corporation, MBA Polymers Inc., Evergreen Plastics Ltd., Envision Plastics, Merlin Plastics, and Alpek Polyester among others.

These companies are focusing on innovation, sound environmental practices, and strategic partnership building, and expanding their product lines to improve performance and meet growing demand in many industries.

Recycled Plastic Resins Industry News:

In June 2024, Dow Chemical Co. teamed with RKW Group, a German manufacturer of polyolefin-based films, to debut two new grades of resins under Dow’s Revoloop recycled plastic resin product portfolio, including a resin with up to 100 percent postconsumer recycled (PCR) plastic.

More Valuable Insights on Offer:

Fact.MR, in its new offering, presents an unbiased analysis of the global recycled plastic resins market, presenting historical data for 2019 to 2023 and forecast statistics for 2024 to 2034.

The study reveals essential insights based on Material Type (Polyethylene Terephthalate (PET), Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), and Others (Acrylonitrile Butadiene Styrene (ABS), Polycarbonate (PC))); Recycling Process (Mechanical Recycling and Chemical Recycling); Source (Bottles, Films & Sheets, Fibers, Foams, and Others (Agricultural Plastics, Medical Plastics)); Application (Packaging, Construction, Automotive, Electrical & Electronics, Textiles, and Others (Medical, Household Products)) across major seven regions of the world (North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East & Africa).

Get Customization on this Report for Specific Research Solutions: https://www.factmr.com/connectus/sample?flag=S&rep_id=10460

Checkout More Related Studies Published by Fact.MR Research:

The global recycled plastic market is projected to reach US$ 85.18 billion in 2024 and thereafter increase at 7.8% CAGR to end up at US$ 180.51 billion by 2034, as stated in a newly published report by Fact.MR.

The global recycled paper bags market experienced year-on-year (YoY) growth of 4.4% to reach US$ 2.8 billion at the end of 2021. Demand for recycled paper bags from the commercial sector was up by 4.6% and reached US$ 1.9 billion in 2021.

The eco-friendly factor introduced by the recycled leather market and its innovative methods of manufacturing is reducing the environmental pollution. For this reason, it is considered as an ideal product for various applications, thereby increasing the overall market value.

The Europe plastic protective packaging market is projected to grow at the rate of 4.5% to reach a valuation of US$ 6.2 Billion by 2032 from US$ 4 Billion in 2022.

The global glass fibre reinforced plastic (GFRP) products market has reached a valuation of US$ 18.54 billion in 2023 and is projected to climb to US$ 41.92 billion by 2033.

About Us:

Fact.MR is a distinguished market research company renowned for its comprehensive market reports and invaluable business insights. As a prominent player in business intelligence, we deliver deep analysis, uncovering market trends, growth paths, and competitive landscapes. Renowned for its commitment to accuracy and reliability, we empower businesses with crucial data and strategic recommendations, facilitating informed decision-making and enhancing market positioning. With its unwavering dedication to providing reliable market intelligence, FACT.MR continues to assist companies in navigating dynamic market challenges with confidence and achieving long-term success. With a global presence and a team of experienced analysts, FACT.MR ensures its clients receive actionable insights to capitalize on emerging opportunities and stay ahead in the competitive landscape.

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Earnings News

Bright Scholar Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2024

25.11.2024 by admin

Gross Profit from continuing operations increased 7.7% YoY and gross margin from continuing operations grew 2.3 ppts for fiscal year 2024
Management to hold a conference call today at 7:00 a.m. Eastern Time

CAMBRIDGE, England and FOSHAN, China, Nov. 25, 2024 /PRNewswire/ — Bright Scholar Education Holdings Limited (“Bright Scholar,” the “Company,” “we” or “our”) BEDU, a global premier education service company, today announced its unaudited financial results for its fourth quarter and fiscal year 2024 ended August 31, 2024.

FOURTH QUARTER OF FISCAL 2024 FINANCIAL HIGHLIGHTS

Revenue from continuing operations was RMB358.3 million, compared to RMB442.2 million for the same quarter last fiscal year.
Revenue from Overseas Schools was RMB185.1 million, representing a 0.2% increase from RMB184.8 million for the same quarter last fiscal year.
Loss from continuing operations was RMB954.8 million, compared to RMB285.1 million for the same quarter last fiscal year. Adjusted net loss^[1]narrowed by 24.3% to RMB92.0 million from RMB121.4 million for the same quarter last fiscal year.

Revenue from continuing operations by Segment

(RMB in millions except for
percentage)

For the fourth quarter ended

August 31,

YoY

% Change

% of total
revenue in
F4Q2024

2024

2023

Overseas Schools

185.1

184.8

0.2 %

51.7 %

Complementary Education
Services^[2]

129.8

161.7

-19.7 %

36.2 %

Domestic Kindergartens & K-
12 Operation Services^[3]

43.4

95.7

-54.7 %

12.1 %

Total

358.3

442.2

-19.0 %

100.0 %

[1]. Adjusted net income/(loss) is defined as net income/(loss) excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax.

[2]. The Complementary Education Services business comprises, overseas study counselling, art training, camps and others.

[3]. The Domestic Kindergartens & K-12 Operation Services business comprises operation services for students of domestic K-12 schools, including catering and procurement services.

For more information on these adjusted financial measures, please see the section captioned “Non-GAAP Financial Measures” and the tables captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this release.

FISCAL YEAR 2024 FINANCIAL HIGHLIGHTS

Revenue from continuing operations was RMB1,755.2 million, compared to RMB1,772.1 million for the last fiscal year.
Revenue from Overseas Schools was RMB951.2 million, representing an increase of 17.5% from the last fiscal year.
Gross profit from continuing operations was RMB503.6 million, representing an increase of 7.7% from RMB467.4 million for the last fiscal year. Gross margin from continuing operations increased to 28.7% from 26.4% for the last fiscal year.
Loss from continuing operations was RMB869.1 million, compared to RMB358.9 million for the last fiscal year. Adjusted net income was RMB1.1 million, compared to adjusted net loss of RMB192.6 for the last fiscal year.

Revenue from continuing operations by Segment

(RMB in millions except for
percentage)

For the fiscal year
ended

August 31,

YoY

% Change

% of total
revenue in FY24

2024

2023

Overseas Schools

951.2

809.5

17.5 %

54.2 %

Complementary Education
Services

495.1

519.2

-4.7 %

28.2 %

Domestic Kindergartens & K-
12 Operation Services

308.9

443.4

-30.3 %

17.6 %

Total

1,755.2

1,772.1

-1.0 %

100.0 %

MANAGEMENT COMMENTARY

Mr. Robert Niu, Chief Executive Officer of Bright Scholar, commented, “Throughout the year, we bolstered our global business and operations, strengthening our foundation for future advancement. Despite macro challenges, we achieved rapid progress in our overseas business while further enhancing our senior leadership team to help advance our near-term expansion goals in overseas markets. Our Overseas Schools business maintained its double-digit year-over-year revenue growth for the fiscal year. As we focused our resources on strengthening our high-growth core business, we have completed divesting non-core business from our Complementary Education Services segment by the end of the fiscal quarter. Moving into fiscal year 2025, we plan to reinforce our “dual-engine” growth strategy by focusing on the continued expansion of our overseas school business while propelling our global recruitment initiatives for prospective international students. We are well-positioned to drive further expansion and capture more of the sizeable market opportunities that will support our sustainable development over the long term.”

Ms. Cindy Zhang, Chief Financial Officer of Bright Scholar, added, “Ongoing development across our core businesses drove our healthy financial results for the fiscal year. Our total revenues for fiscal year 2024 remained stable year over year, with Overseas Schools revenue increasing by 18%. We continued to streamline our operations and improve operational efficiency. Notably, our gross profit increased by 7.7% and gross margin by 2.3 percentage points year-over-year. Meanwhile, we significantly enhanced our cash position, increasing our cash and cash equivalents and restricted cash by 20% for the fiscal year. Looking ahead, supported by our healthy balance sheet and the effective implementation of our “dual-engine” growth strategy, we are confident we can solidify our competitive edge while also driving long-term growth and profitability.”

UNAUDITED FINANCIAL RESULTS FOR THE FOURTH FISCAL QUARTER ENDED AUGUST 31, 2024

Revenue from Continuing Operations

Revenue was RMB358.3 million, compared to RMB442.2 million for the same quarter last fiscal year.

Overseas Schools: Revenue contribution was RMB185.1 million, representing a 0.2% increase from RMB184.8 million for the same quarter last fiscal year.

Complementary Education Services: Revenue contribution was RMB129.8 million, compared to RMB161.7 million for the same quarter last fiscal year. The decrease was mainly attributable to a reduction in extracurricular programs and study tours.

Domestic Kindergartens & K-12 Operation Services: Revenue contribution was RMB43.4 million, compared to RMB95.7 million for the same quarter last fiscal year.

Cost of Revenue from Continuing Operations

Cost of revenue was RMB322.4 million, or 90.0% of revenue, compared to RMB362.4 million, or 81.9%, for the same quarter last fiscal year.

Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations

Gross profit was RMB35.9 million, compared to RMB79.8 million for the same quarter last fiscal year. Gross margin was 10.0%, compared to 18.1% for the same quarter last fiscal year.

Adjusted gross profit^[4]was RMB36.9 million, compared to RMB80.9 million for the same quarter last fiscal year.

Selling, General and Administrative (SG&A) Expenses from Continuing Operations

Total SG&A expenses were RMB119.3 million, representing an 18.3% decrease from RMB146.0 million for the same quarter last fiscal year. This improvement was mainly due to our continuous efforts to streamline our operations and improve operational efficiency in our headquarters.

Operating Loss/Income, Operating Margin and Adjusted Operating Income from Continuing Operations

Operating loss was RMB941.8 million, compared to RMB227.6 million for the same quarter last fiscal year. Operating loss margin was 262.9%, compared to 51.5% for the same quarter last fiscal year.

Adjusted operating loss^[5] was RMB78.8 million, compared to RMB64.0 million for the same quarter last fiscal year.

Net Loss and Adjusted Net Income/Loss

Net loss was RMB1,004.7 million, compared to RMB340.3 million for the same quarter last fiscal year.

Adjusted net loss was RMB92.0 million, compared to RMB121.4 million for the same quarter last fiscal year.

Adjusted EBITDA^[6]

Adjusted EBITDA loss was RMB81.8 million, compared to RMB55.0 million for the same quarter last fiscal year.

Net Loss per Ordinary Share/ADS and Adjusted Net Earnings/Loss per Ordinary Share/ADS

Basic and diluted net loss per ordinary share attributable to ordinary shareholders from continuing operations were RMB7.90 each, compared to RMB2.41 each for the same quarter last fiscal year.

Basic and diluted net loss per ordinary share attributable to ordinary shareholders from discontinued operations were RMB0.42 each, compared to RMB0.50 each for the same quarter last fiscal year.

Adjusted basic and diluted net loss per ordinary share^[7] attributable to ordinary shareholders were RMB0.75 each, compared to RMB1.03 each for the same quarter last fiscal year.

Basic and diluted net loss per ADS attributable to ADS holders from continuing operations were RMB31.60 each, compared to RMB9.64 each for the same quarter last fiscal year.

Basic and diluted net loss per ADS attributable to ADS holders from discontinued operations were RMB1.68 each, compared to RMB2.00 each for the same quarter last fiscal year.

Adjusted basic and diluted net loss per ADS^[8]attributable to ADS holders were RMB3.00 each, compared to RMB4.12 each for the same quarter last fiscal year.

UNAUDITED FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED AUGUST 31, 2024

Revenue from Continuing Operations

Revenue was RMB1,755.2 million, compared to RMB1,772.1 million for the last fiscal year.

Overseas Schools: Revenue contribution was RMB951.2 million, representing a 17.5% increase from RMB809.5 million for the last fiscal year. The increase was mainly attributable to increases in both the number of students enrolled and the average tuition fees of overseas schools.

Complementary Education Services: Revenue contribution was RMB495.1 million, compared to RMB519.2 million for the last fiscal year. The decrease was mainly attributable to a reduction in extracurricular programs and study tours.

Domestic Kindergartens & K-12 Operation Services: Revenue contribution was RMB308.9 million, compared to RMB443.4 million for the last fiscal year.

Cost of Revenue from Continuing Operations

Cost of revenue was RMB1,251.6 million, or 71.3% of revenue, compared to RMB1,304.7 million, or 73.6%, for the last fiscal year. The improvement was mainly attributable to cost-saving measures.

Gross Profit, Gross Margin and Adjusted Gross Profit from Continuing Operations

Gross profit was RMB503.6 million, representing a 7.7% increase from RMB467.4 million for the last fiscal year. The increase was mainly attributable to the revenue growth in Overseas Schools. Gross margin increased to 28.7% from 26.4% for the last fiscal year.

Adjusted gross profit was RMB507.8 million, representing a 7.6% increase from RMB471.8 million for the last fiscal year.

Selling, General and Administrative (SG&A) Expenses from Continuing Operations

Total SG&A expenses were RMB469.0 million, representing an 8.1% decrease from RMB510.3 million for the last fiscal year. This improvement was mainly due to our continuous efforts to streamline our global operations and improve operational efficiency in our headquarters.

Operating Loss/Income, Operating Margin and Adjusted Operating Income from Continuing Operations

Operating loss was RMB820.4 million, compared to RMB161.7 million for the last fiscal year. Operating loss margin was 46.7%, compared to 9.1% for the last fiscal year.

Adjusted operating income increased by 856.3% to RMB50.5 million, from RMB5.3 million for the last fiscal year.

Net Loss and Adjusted Net Income/Loss

Net loss was RMB1,032.9 million, compared to RMB386.8 million for the last fiscal year.

Adjusted net income was RMB1.1 million, compared to adjusted net loss of RMB192.6 million for the last fiscal year.

Adjusted EBITDA

Adjusted EBITDA increased by 44.1% to RMB80.7 million, from RMB56.0 million for the last fiscal year.

Net Loss per Ordinary Share/ADS and Adjusted Net Earnings/Loss per Ordinary Share/ADS

Basic and diluted net loss per ordinary share from continuing operations attributable to ordinary shareholders were RMB7.18 each, compared to RMB3.03 each for the last fiscal year.

Basic and diluted net loss per ordinary share from discontinued operations attributable to ordinary shareholders were RMB1.22 each, compared to RMB0.30 each for the last fiscal year.

Adjusted basic and diluted net income per ordinary share attributable to ordinary shareholders were RMB0.04 each, compared to net loss per ordinary share attributable to ordinary shareholders of RMB1.63 each for the last fiscal year.

Basic and diluted net loss per ADS from continuing operations attributable to ADS holders were RMB28.72 each, compared to RMB12.12 each for the last fiscal year.

Basic and diluted net loss per ADS from discontinued operations attributable to ADS holders were RMB4.88 each, compared to RMB1.20 each for the last fiscal year.

Adjusted basic and diluted net income per ADS attributable to ADS holders were RMB0.16 each, compared to net loss per ADS attributable to ADS holders were RMB6.52 each for the last fiscal year.

Cash and Working Capital

As of August 31, 2024, the Company had cash and cash equivalents and restricted cash of RMB505.8 million (US$71.3 million), compared to RMB419.9 million as of August 31, 2023.

[4] Adjusted gross profit from continuing operations is defined as gross profit from continuing operations excluding amortization of intangible assets.

[5]. Adjusted operating income/(loss) from continuing operations is defined as operating income/(loss) from continuing operations excluding share-based compensation expenses, amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, and impairment loss on the long-term investments.

[6]. Adjusted EBITDA is defined as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit, depreciation and amortization, share-based compensation expenses, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax.

[7] Adjusted basic and diluted earnings/(loss) per share is defined as adjusted net income/(loss) attributable to ordinary shareholders (net income/(loss) attributable to ordinary shareholders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ordinary shares.

[8]. Adjusted basic and diluted earnings/(loss) per American Depositary Share (“ADS”) is defined as adjusted net income/(loss) attributable to ADS shareholders (net income/(loss) attributable to ADS shareholders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ADSs.

CONFERENCE CALL

The Company’s management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong Time) on November 25, 2024.

Dial-in details for the earnings conference call are as follows:

Mainland China:                  4001-201203
Hong Kong: 800-905945
United States:                     1-888-346-8982
International:                       1-412-902-4272

Participants should dial in at least 5 minutes before the scheduled start time and ask to be connected to the call for “Bright Scholar Education Holdings Limited.”

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.brightscholar.com/.

A replay of the conference call will be accessible after the conclusion of the live call until December 2, 2024, by dialing the following telephone numbers:

United States Toll Free: 1-877-344-7529
International: 1-412-317-0088
Replay Passcode: 7352870

CONVENIENCE TRANSLATION

The Company’s reporting currency is Renminbi (“RMB”). However, periodic reports made to shareholders will include current period amounts translated into U.S. dollars using the prevailing exchange rates at the balance sheet date for the convenience of readers. Translations of balances in the condensed consolidated balance sheets, and the related condensed consolidated statements of operations, and cash flows from RMB into U.S. dollars as of and for the quarter ended August 30, 2024 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0900, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on August 30, 2024. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on August 30, 2024, or at any other rate.

NON-GAAP FINANCIAL MEASURES

In evaluating our business, we consider and use certain non-GAAP measures, including primarily adjusted EBITDA, adjusted net income/(loss), adjusted gross profit/(loss), adjusted operating income/(loss), adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders basic and diluted as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define adjusted gross profit/(loss) from continuing operations as gross profit/(loss) from continuing operations excluding amortization of intangible assets. We define adjusted EBITDA as net income/(loss) excluding interest income/(expense), net, income tax expense/benefit, depreciation and amortization, share-based compensation expenses, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on the long-term investments and income/(loss) from discontinued operations, net of tax. We define adjusted net income/(loss) as net income/(loss) excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax. We define adjusted operating income/(loss) from continuing operations as operating income/(loss) from continuing operations excluding share-based compensation expenses, amortization of intangible assets, impairment loss on property and equipment, impairment loss on goodwill, impairment loss on intangible assets and impairment loss on the long-term investments. Additionally, we define adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted, as adjusted net income/(loss) attributable to ordinary shareholders/ADS holders (net income/(loss) to ordinary shareholders/ADS holders excluding share-based compensation expenses, amortization of intangible assets, tax effect of amortization of intangible assets, impairment loss on goodwill, impairment loss on intangible assets,, impairment loss on property and equipment, impairment loss on the long-term investments, and income/(loss) from discontinued operations, net of tax) divided by the weighted average number of basic and diluted ordinary shares or ADSs.

We incur amortization expense of intangible assets related to various acquisitions that have been made in recent years. These intangible assets are valued at the time of acquisition and are then amortized over a period of several years after the acquisition. We believe that exclusion of these expenses allows greater comparability of operating results that are consistent over time for the Company’s newly-acquired and long-held business as the related intangibles do not have significant connection to the growth of the business. Therefore, we provide exclusion of amortization of intangible assets to define adjusted gross profit from continuing operations, adjusted operating income/(loss) from continuing operations, adjusted net income/(loss), and adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted. In addition, the strategic move to dispose of the non-core businesses is viewed as discontinued operations, which is a non-recurring item. The exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we provide exclusion of income/(loss) from discontinued operations, net of tax, to define adjusted net income/(loss), adjusted EBITDA, adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders, basic and diluted.

We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Such non-GAAP measures include adjusted EBITDA, adjusted net income/(loss), adjusted gross profit/(loss) from continuing operations, adjusted operating income/(loss) from continuing operations, adjusted net earnings/(loss) per share attributable to ordinary shareholders/ADS holders basic and diluted. Non-GAAP financial measures enable our management to assess our operating results without considering the impact of non-cash charges, including depreciation and amortization and share-based compensation expenses, and without considering the impact of non-operating items such as interest income/(expense), net; income tax expense/benefit; share-based compensation expenses; amortization of intangible assets, tax effect of amortization of intangible assets, and without considering the impact of non-recurring item, i.e. income/(loss) from discontinued operations. We also believe that the use of these non-GAAP measures facilitates investors’ assessment of our operating performance.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Interest income/(expense), net; income tax expense/benefit; depreciation and amortization; share-based compensation expense; tax effect of amortization of intangible assets have been and may continue to be incurred in our business and are not reflected in the presentation of these non-GAAP measures, including adjusted EBITDA or adjusted net income/(loss). Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

About Bright Scholar Education Holdings Limited

Bright Scholar is a premier global education service Group. The Company primarily provides quality international education to global students and equips them with the critical academic foundation and skillsets necessary to succeed in the pursuit of higher education.

For more information, please visit: https://ir.brightscholar.com/.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company’s business plans and development, which can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

IR Contact:
Email: BEDU@thepiacentegroup.com
Phone: +86 (10) 6508-0677/ +1-212-481-2050

Media Contact:
Email: media@brightscholar.com

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands)

	As of
	August 31,	August 31,
	2023	2024
	RMB	RMB	USD

ASSETS
Current assets
Cash and cash equivalents	410,086	493,377	69,588
Restricted cash	9,521	12,167	1,716
Accounts receivable, net	13,800	18,793	2,651
Amounts due from related parties, net	183,468	14,417	2,033
Other receivables, deposits and other assets, net	116,807	123,860	17,470
Inventories	1,183	1,160	165
Current assets belong to discontinued operations	192,534	–	–

Total current assets	927,399	663,774	93,622

Restricted cash – non-current	250	250	35
Property and equipment, net	390,006	349,349	49,273
Intangible assets, net	310,022	49,598	6,995
Goodwill, net	1,110,802	527,297	74,372
Long-term investments, net	32,732	24,421	3,444
Prepayments for construction contracts	1,712	328	46
Deferred tax assets, net	1,644	1,920	271
Other non-current assets, net	9,424	9,106	1,284
Operating lease right-of-use assets – non current	1,490,009	1,419,406	200,198
Non-current assets belong to discontinued operations	345,510	–	–

Total non-current assets	3,692,111	2,381,675	335,918

TOTAL ASSETS	4,619,510	3,045,449	429,540

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS-CONTINUED (Amounts in thousands)

	As of
	August 31,	August 31,
	2023	2024
	RMB	RMB	USD
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	94,481	91,843	12,954
Amounts due to related parties	244,259	78,365	11,053
Accrued expenses and other current liabilities	233,053	191,222	26,971
Income tax payable	88,460	78,986	11,140
Contract liabilities – current	428,617	445,715	62,865
Refund liabilities – current	10,129	9,872	1,392
Operating lease liabilities – current	104,905	106,325	14,996
Current liabilities belong to discontinued operations	276,499	–	–

Total current liabilities	1,480,403	1,002,328	141,371

Non-current contract liabilities	971	866	122
Deferred tax liabilities, net	34,755	31,174	4,397
Operating lease liabilities – non current	1,461,255	1,404,973	198,163
Non-current liabilities belong to discontinued operations	70,470	–	–

Total non-current liabilities	1,567,451	1,437,013	202,682

TOTAL LIABILITIES	3,047,854	2,439,341	344,053


EQUITY
Share capital	8	8	1
Additional paid-in capital	1,697,370	1,783,490	251,550
Statutory reserves	20,155	16,535	2,332
Accumulated other comprehensive income	172,230	191,397	26,995
Accumulated deficit	(473,154)	(1,474,619)	(207,986)

Shareholders’ equity	1,416,609	516,811	72,892
Non-controlling interests	155,047	89,297	12,595

TOTAL EQUITY	1,571,656	606,108	85,487

TOTAL LIABILITIES AND EQUITY	4,619,510	3,045,449	429,540

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for shares and per share data)

	Three Months Ended August 31				Year Ended August 31
	2023	2024			2023	2024
	RMB	RMB	USD		RMB	RMB	USD

Continuing operations
Revenue	442,187	358,271	50,532		1,772,127	1,755,206	247,561
Cost of revenue	(362,354)	(322,407)	(45,473)		(1,304,699)	(1,251,620)	(176,533)

Gross profit	79,833	35,864	5,059		467,428	503,586	71,028
Selling, general and administrative expenses	(145,996)	(119,253)	(16,820)		(510,269)	(469,047)	(66,156)
Impairment loss on goodwill	(147,116)	(593,748)	(83,744)		(147,116)	(593,748)	(83,744)
Impairment loss on intangible assets	–	(258,326)	(36,435)		–	(258,326)	(36,435)
Impairment loss on property and equipment	(12,891)	(6,607)	(932)		(12,891)	(6,607)	(932)
Impairment loss on the long-term investments	(2,613)	–	–		(2,613)	–	–
Other operating income	1,162	316	45		43,783	3,699	522
Operating loss	(227,621)	(941,754)	(132,827)		(161,678)	(820,443)	(115,717)
Interest income/(expense), net	2,124	392	55		(5,452)	(1,315)	(185)
Investment loss	(25)	(182)	(26)		(807)	(2,516)	(355)
Other expenses	(4,316)	(5,591)	(790)		(7,380)	(4,012)	(567)

Loss before income taxes and share of equity in profit/(loss) of unconsolidated affiliates	(229,838)	(947,135)	(133,588)		(175,317)	(828,286)	(116,824)
Income tax (expense)/ benefit	(55,301)	337	48		(183,208)	(32,908)	(4,641)
Share of equity in profit/(loss) of unconsolidated affiliates	61	(7,957)	(1,122)		(339)	(7,876)	(1,111)

Net loss from continuing operations	(285,078)	(954,755)	(134,662)		(358,864)	(869,070)	(122,576)

Loss from discontinued operations, net of tax	(55,240)	(49,929)	(7,042)		(27,959)	(163,791)	(23,102)

Net loss	(340,318)	(1,004,684)	(141,704)		(386,823)	(1,032,861)	(145,678)

Net income/(loss) attributable to non-controlling interests
Continuing operations	334	(16,761)	(2,364)		823	(17,296)	(2,439)
Discontinued operations	3,957	(60)	(8)		7,488	(19,286)	(2,720)

Net loss attributable to ordinary shareholders
Continuing operations	(285,412)	(937,994)	(132,298)		(359,687)	(851,774)	(120,137)
Discontinued operations	(59,197)	(49,869)	(7,034)		(35,447)	(144,505)	(20,382)

Net loss per share attributable to
ordinary shareholders
—Basic and diluted
Continuing operations	(2.41)	(7.90)	(1.11)		(3.03)	(7.18)	(1.01)
Discontinued operations	(0.50)	(0.42)	(0.06)		(0.30)	(1.22)	(0.17)


Weighted average shares used in
calculating net loss per ordinary share:
—Basic and diluted
Continuing operations	118,669,795	118,669,795	118,669,795		118,669,795	118,669,795	118,669,795
Discontinued operations	118,669,795	118,669,795	118,669,795		118,669,795	118,669,795	118,669,795


Net loss per ADS
—Basic and diluted
Continuing operations	(9.64)	(31.60)		(4.44)	(12.12)	(28.72)	(4.04)
Discontinued operations	(2.00)	(1.68)		(0.24)	(1.20)	(4.88)	(0.68)

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands)

	Three Months Ended August 31			Twelve Months Ended August 31
	2023	2024		2023	2024
	RMB	RMB	USD	RMB	RMB	USD

Net cash generated from operating activities	6,923	104,041	14,674	22,261	126,394	17,827

Net cash used in investing activities	(20,003)	(128,015)	(18,056)	(52,949)	(98,004)	(13,823)

Net cash used in financing activities	(208,397)	(1,201)	(169)	(298,794)	(85,459)	(12,053)

Effect of exchange rate changes on cash and cash equivalents, and restricted cash	23,319	(6,270)	(884)	38,934	(4,373)	(617)

Net change in cash and cash equivalents,
and restricted cash	(198,158)	(31,445)	(4,435)	(290,548)	(61,442)	(8,666)

Cash and cash equivalents, and restricted cash
at beginning of the period	765,394	537,239	75,774	857,784	567,236	80,005

Cash and cash equivalents, and restricted cash
at end of the period	567,236	505,794	71,339	567,236	505,794	71,339

BRIGHT SCHOLAR EDUCATION HOLDINGS LIMITED Reconciliations of GAAP and Non-GAAP Results (Amounts in thousands, except for shares and per share data)

	Three Months Ended August 31			Year Ended August 31
	2023	2024		2023	2024
	RMB	RMB	USD	RMB	RMB	USD

Gross profit from continuing operations	79,833	35,864	5,059	467,428	503,586	71,028
Add: Amortization of intangible assets	1,050	1,050	148	4,341	4,184	590
Adjusted gross profit from continuing operations	80,883	36,914	5,207	471,769	507,770	71,618

Operating loss from continuing operations	(227,621)	(941,754)	(132,827)	(161,678)	(820,443)	(115,717)
Add: Share-based compensation expenses	–	3,240	457	–	8,101	1,143
Add: Amortization of intangible assets	1,050	1,050	148	4,341	4,184	590
Add: Impairment loss on goodwill	147,116	593,748	83,744	147,116	593,748	83,744
Add: Impairment loss on intangible assets	–	258,326	36,435	–	258,326	36,435
Add: Impairment loss on property and equipment	12,891	6,607	932	12,891	6,607	932
Add: Impairment loss on the long-term investments	2,613	–	–	2,613	–	–
Adjusted operating (loss)/income from continuing operations	(63,951)	(78,783)	(11,111)	5,283	50,523	7,127

Net loss	(340,318)	(1,004,684)	(141,704)	(386,823)	(1,032,861)	(145,678)
Add: Share-based compensation expenses	–	3,240	457	–	8,101	1,143
Add: Amortization of intangible assets	1,050	1,050	148	4,341	4,184	590
Add: Tax effect of amortization of intangible assets	(41)	(209)	(29)	(670)	(833)	(117)
Add: Impairment loss on goodwill	147,116	593,748	83,744	147,116	593,748	83,744
Add: Impairment loss on intangible assets	–	258,326	36,435	–	258,326	36,435
Add: Impairment loss on property and equipment	12,891	6,607	932	12,891	6,607	932
Add: Impairment loss on the long-term investments	2,613	–	–	2,613	–	–
Less: Loss from discontinued operations, net of tax	(55,240)	(49,929)	(7,042)	(27,959)	(163,791)	(23,102)
Adjusted net (loss)/income	(121,449)	(91,993)	(12,975)	(192,573)	1,063	151

Net loss attributable to ordinary shareholders	(344,608)	(987,863)	(139,332)	(395,134)	(996,279)	(140,519)
Add: Share-based compensation expenses	–	3,240	457	–	8,101	1,143
Add: Amortization of intangible assets	1,050	1,050	148	4,341	4,184	590
Add: Tax effect of amortization of intangible assets	(41)	(209)	(29)	(670)	(833)	(117)
Add: Impairment loss on goodwill	147,116	579,827	81,781	147,116	579,827	81,781
Add: Impairment loss on intangible assets	–	258,326	36,435	–	258,326	36,435
Add: Impairment loss on property and equipment	12,891	6,607	932	12,891	6,607	932
Add: Impairment loss on the long-term investments	2,613	–	–	2,613	–	–
Less: Loss from discontinued operations, net of tax	(59,197)	(49,869)	(7,034)	(35,447)	(144,505)	(20,382)
Adjusted net (loss)/income attributable to ordinary shareholders	(121,782)	(89,153)	(12,574)	(193,396)	4,438	627

Net loss	(340,318)	(1,004,684)	(141,704)	(386,823)	(1,032,861)	(145,678)
Add: Interest expense, net	(2,124)	(392)	(55)	5,452	1,315	185
Add: Income tax expense	55,301	(337)	(48)	183,208	32,908	4,641
Add: Depreciation and amortization	14,293	11,808	1,665	63,598	48,796	6,882
Add: Share-based compensation expenses	–	3,240	457	–	8,101	1,143
Add: Impairment loss on goodwill	147,116	593,748	83,744	147,116	593,748	83,744
Add: Impairment loss on intangible assets	–	258,326	36,435	–	258,326	36,435
Add: Impairment loss on property and equipment	12,891	6,607	932	12,891	6,607	932
Add: Impairment loss on the long-term investments	2,613	–	–	2,613	–	–
Less: Loss from discontinued operations, net of tax	(55,240)	(49,929)	(7,042)	(27,959)	(163,791)	(23,102)
Adjusted EBITDA	(54,988)	(81,755)	(11,532)	56,014	80,731	11,386

Weighted average shares used
in calculating adjusted net (loss)/income per ordinary share:
—Basic and Diluted
Continuing operations	118,669,795	118,669,795	118,669,795	118,669,795	118,669,795	118,669,795
Discontinued operations	118,669,795	118,669,795	118,669,795	118,669,795	118,669,795	118,669,795

Adjusted net (loss)/income per share attributable
to ordinary shareholders
—Basic	(1.03)	(0.75)	(0.11)	(1.63)	0.04	0.01
—Diluted	(1.03)	(0.75)	(0.11)	(1.63)	0.04	0.01
Adjusted net (loss)/income per ADS
—Basic	(4.12)	(3.00)	(0.44)	(6.52)	0.16	0.04
—Diluted	(4.12)	(3.00)	(0.44)	(6.52)	0.16	0.04

View original content:https://www.prnewswire.com/news-releases/bright-scholar-announces-unaudited-financial-results-for-the-fourth-quarter-and-fiscal-year-2024-302315296.html

SOURCE Bright Scholar Education Holdings Ltd.

Markets News

Donald Trump's Win Positive For Financials, Energy Sector As 'Pro-Growth Effects Will Outweigh Inflationary Pressures,' Says Analyst

25.11.2024 by admin

Donald Trump’s win is positive for the financial and energy sectors as the “pro-growth effects of fiscal stimulus currently outweigh the inflationary risks in the near term” according to an analyst.

What Happened: Mario Georgiou, CFA and executive director, head of investments at InCred Global Wealth U.K., in an exclusive conversation with Benzinga, described tax cuts and deregulation as tailwinds to the markets. He considers inflationary policies such as tariffs and immigration impacts as headwinds, leading to a steepening yield curve, and higher term premiums.

“Financials offer an attractive risk-reward and that this recent post-election rally has room to run,” added Georgiou. According to him “financials are not only well positioned to capture the benefits of the above-mentioned Trump tailwinds, but are also less impacted / would even benefit from the Trump headwinds.”

Despite a few dips, the equity markets have been trading higher than the pre-election levels after President-elect Trump’s victory. The S&P 500 has increased by 3.22%, rising from $5,782.76 on Nov. 5 to $5,969.34 as of Friday’s close. The SPDR S&P 500 ETF SPY which tracks the S&P 500 Index has had a similar momentum, according to data from Benzinga Pro.

Meanwhile, Financial Select Sector SPDR Fund XLF, Vanguard Financials ETF VFH, iShares U.S. Financials ETF IYF, and SPDR S&P Bank ETF KBE, have returned over 30% year-to-date in 2024 outperforming the S&P 500 Index’s 26% run.

Also read: Donald Trump’s DOGE Initiative To Have ‘Marginal Impact’ Says Analyst As Elon Musk Aims To Target Over $500B In Federal Expenditures

Other sectors that Georgiou prefers, include energy. According to him “deregulation supporting oil production and geopolitical risks could sustain elevated oil prices and relative valuations are attractive.”

Even though the energy sector has underperformed the broader markets in 2024, “fundamentally, companies are shareholder friendly with 8-12% shareholder yields, have strong balance sheets with low net debt to EBITDA ratios and high free cash flow yields of 6.50% and above,” he adds.

Invesco S&P 500 Equal Weight ETF RSP, iShares Russell 1000 Value ETF IWD, Vanguard High Dividend Yield Index ETF VYM and ProShares S&P 500 Ex-Energy ETF SPXE have all underperformed the S&P 500 on a year-to-date basis.

Why It Matters: As markets hit their 51st record high of 2024 and the S&P 500 Index crossed 6,000 points, some analysts caution that tariffs could pose risks to equities and suggest that the market may be overvalued.

“The prospect of tariffs isn’t obviously good for equities, while it’s clearly good for the Dollar,” former Goldman Sachs FX strategist and senior fellow at Brookings Institution, Robin Brooks said in an X post. “Markets initially got this wrong, driving stocks up sharply right after Nov. 5,” he added.

However, Georgiou is “cautiously optimistic” about the markets, he said “a neutral to fully invested equity allocation is warranted, with a focus on sectors benefiting from Trump’s policies, whilst always maintaining our core investment principles, which is a focus on fundamentals, quality, and risk management.”

Image via Flickr

Market News and Data brought to you by Benzinga APIs

Finance News

Has Nvidia Stock Topped? A Single Metric Offers a Very Clear Answer.

25.11.2024 by admin

Roughly 30 years ago, the advent of the internet changed the growth trajectory for businesses across the globe. Although it took a few years for the internet to mature as a technology and for businesses to fully understand how to harness its potential, it’s had a notably positive impact on long-term growth trends.

Since the mid-1990s, Wall Street has been waiting patiently for the next leap forward for corporate America. Over the last two years, artificial intelligence (AI) appears to have answered the call.

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A humanoid face emerging from a sea of pixels and circuitry, which is representative of artificial intelligence. — Image source: Getty Images.

AI-driven software and systems have the ability to become more proficient at their assigned tasks, as well as learn new skill sets without human intervention. This capacity to learn and evolve over time is what gives this technology seemingly limitless potential and utility in most industries around the globe.

While the AI ecosystem is vast, which should allow numerous businesses to thrive, no company been a more direct beneficiary of the rise of AI than cutting-edge semiconductor stock Nvidia (NASDAQ: NVDA). Since 2023 began, Nvidia’s market value skyrocketed from $360 billion to north of $3.6 trillion, which makes it the largest publicly traded company, as of this writing.

Less than two years ago, when Nvidia lifted the hood on fiscal 2023 (Nvidia’s fiscal year ends in late January), the company reported $27 billion in full-year sales. In the current fiscal year (2025), it’s pacing closer to $129 billion in full-year revenue, with Wall Street calling for almost $192 billion in sales next year.

This otherworldly growth is a function Nvidia’s AI-graphics processing units (GPUs) being the preferred choice for businesses running high-compute data centers. The analysts at TechInsights pegged Nvidia’s share of GPU shipments to data centers at 98% in 2022 and 2023. Based on the company’s two-year sales ramp, it’d be a fair assumption that Nvidia’s H100 GPU (commonly known as the “Hopper”) and successor Blackwell GPU architecture aren’t having any issues finding buyers.

Nvidia has also been able to take advantage of the law of supply and demand. With orders for the Hopper and next-generation Blackwell chip backlogged, it’s been able to meaningfully increase the price for its hardware. The roughly $30,000 to $40,000 price tag for the Hopper represents a 100% to 300% premium to what Advanced Micro Devices (NASDAQ: AMD) is netting for its MI300X chips for AI-accelerated data centers.

Credit also needs to be given to Nvidia’s CUDA software platform for its virtually textbook operating expansion. CUDA is the toolkit developers use to maximize the potential of their Nvidia GPUs, including building large language models. This platform has helped keep clients loyal to Nvidia’s umbrella of products and services.

Although everything seems to be going perfect for Nvidia, as its stock performance would suggest, one metric in the company’s recently released third-quarter operating results (for the quarter ended Oct. 27) tells a different story.

As expected, Nvidia’s headline figures look as good as advertised. Quarterly sales jumped 94% from the year-ago quarter to $35.08 billion, while net income surged 109% to $19.3 billion. Both were well ahead of Wall Street’s consensus forecast.

But there is one exceptionally important figure that’s showing signs of weakness, and it foreshadows the very real possibility of the top being in for Nvidia stock.

When Nvidia lifted the hood on its first-quarter operating results in May, it reported a scorching-hot gross margin of 78.4%. The dramatic increase the company has enjoyed in its gross margin is a function of AI-GPU scarcity and its aforementioned exceptional pricing power.

NVDA Gross Profit Margin (Quarterly) Chart — NVDA Gross Profit Margin (Quarterly) data by YCharts. The above chart isn’t yet reflective of Nvidia’s fiscal third-quarter gross margin of 74.6%.

However, the tide is turning. After delivering a 78.4% gross margin in Q1 2025, Nvidia reported a gross margin of 75.1% in Q2 2025 and 74.6% in the latest quarter. For the fiscal fourth quarter, it’s forecasting a gross margin of 73% to 73.5%, +/- 50 basis points.

Although Nvidia’s gross margin is notably higher now than it was prior to the AI revolution taking shape, this steady decline we’re witnessing is evidence that AI-GPU scarcity is waning and competition is picking up.

Most of Wall Street is focused on the external competition Nvidia is going to have to contend with. AMD has been steadily ramping up production of its MI300X AI-GPUs and recently unveiled its next-gen MI325X chip, which it intends to put into production before the end of the year. AMD is a brand-name company with a rich history and a considerably cheaper AI-GPU than Nvidia’s Hopper and Blackwell chips. Businesses wanting to gain first-mover advantages may be compelled to skip the potentially long wait for Nvidia’s hardware and choose AMD.

But the bigger issue for Nvidia may very well be the competition it’s facing from within. Many of the company’s top customers by net sales are members of the “Magnificent Seven,” and they’re all internally developing AI-GPUs to deploy in their data centers. Even if these chips come up short to Nvidia’s hardware in terms of computing capabilities, they’re still markedly cheaper and more easily accessible.

Anything that reduces AI-GPU scarcity is going to adversely impact Nvidia’s pricing power and its gross margin.

A person drawing an arrow to and circling the bottom of a very steep decline in a stock chart. — Image source: Getty Images.

Based on the trend we’re seeing from Nvidia’s gross margin, its shares have likely topped. But history would like a word, as well.

Even though the internet transformed the business world three decades ago, it took time for the technology to mature and for businesses to properly utilize it to generate a positive return on their investment. Every next-big-thing innovation for 30 years, including the internet, has worked its way through an early innings bubble-bursting event.

What this tells us is that investors consistently overestimate how quickly a new technology will be adopted by consumers and/or businesses on a broad basis. It also suggests investors are overly optimistic about the utility of cutting-edge technologies. Though artificial intelligence can be every bit the gamechanger that Wall Street expects it to be, it’s going to take time for businesses to figure out how best to utilize AI. This is what leads to lofty expectations eventually falling short.

Investors are seeing this dynamic play out right in front of their eyes. Even with sizable investments in AI data centers from some of Wall Street’s most-prominent companies, most of these businesses lack a clear game plan to generate a positive return on their AI investments any time soon. The utility aspect of AI isn’t well understood at the moment — and that’s a scary thing for a company whose gross margin is in a decisive decline.

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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.

Has Nvidia Stock Topped? A Single Metric Offers a Very Clear Answer. was originally published by The Motley Fool

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Day: November 25, 2024