Golden Sun Education Group Limited Reports First Half of Fiscal Year 2022 Financial Results
First Half of Fiscal Year 2022 Financial Highlights
- Revenues from our continuing operation in the six months ended
March 31, 2022 decreased by 3% to approximately$7.2 million from approximately$7.4 million in the same period of fiscal year 2021. - Gross profit from our continuing operation in the six months ended
March 31, 2022 decreased by 11% to approximately$4.0 million from approximately$4.5 million in the same period of fiscal year 2021. Gross margin decreased to 55% in the six months endedMarch 31, 2022 from 60% in the same period of fiscal year 2021. - Net income in the six months ended
March 31, 2022 decreased by 75% to approximately$0.4 million from approximately$1.6 million in the same period of fiscal year 2021. - As of
March 31, 2022 , the Company had approximately$0.6 million of cash, which represented a decrease of 48% from approximately$1.2 million as ofSeptember 30, 2021 .
Mr. Xueyuan Weng, Chairman and Chief Executive Officer of
First Half of Fiscal Year 2022 Financial Results
Revenue from our continuing operations consisted of: (i) tutorial services and (ii) logistic and consulting services. The following table sets forth the breakdown of our revenue for the periods presented:
For the six months ended |
||||||||||||||||||||||||
2022 |
2021 |
Amount |
% |
|||||||||||||||||||||
Revenue by type |
Amount |
% of |
Amount |
% of |
Increase |
Increase |
||||||||||||||||||
Tutorial services |
6,383,764 |
89 |
% |
6,575,317 |
89 |
% |
(191,553) |
(3) |
% |
|||||||||||||||
Logistic and consulting services |
821,804 |
11 |
% |
821,661 |
11 |
% |
143 |
0 |
% |
|||||||||||||||
Total revenue |
$ |
7,205,568 |
100 |
% |
$ |
7,396,978 |
100 |
% |
$ |
(191,410) |
(3) |
% |
Revenues in the six months ended
Our tutorial services revenue in the six months ended
Our logistic and consulting services revenue in each of the six months ended
Cost of revenues in the six months ended
Gross profit in the six months ended
Operating Expenses
For the six months ended |
||||||||||||||||||||||||
2022 |
2021 |
|||||||||||||||||||||||
Amount |
% of |
Amount |
% of |
Amount |
% |
|||||||||||||||||||
Selling expenses |
$ |
922,270 |
12 |
% |
$ |
778,277 |
11 |
% |
$ |
143,993 |
19 |
% |
||||||||||||
General and administrative expenses |
2,048,007 |
28 |
% |
2,309,919 |
31 |
% |
(261,912) |
(11) |
% |
|||||||||||||||
Total |
$ |
2,970,277 |
40 |
% |
$ |
3,088,196 |
42 |
% |
$ |
(117,919) |
(4) |
% |
Operating expenses in the six months ended
- Selling expenses in the six months ended
March 31, 2022 increased by 19% to approximately $0.9 million from approximately$0.8 million in the same period of 2021. The increase in selling expenses was mainly due to higher contract acquisition costs related to the upfront fees paid to tutorial service agents to facilitate the related contracts with students for the tutorial service as compared to the same period of fiscal year 2021. - General and administrative expenses in the six months ended
March 31, 2022 decreased by 11% to approximately$2.0 million from approximately$2.3 million in the same period of fiscal year 2021. As a percentage of revenues, general and administrative expenses represented approximately 28% and 31% of revenues in the six months endedMarch 31, 2022 and 2021, respectively. The decrease of general and administrative expenses was primarily due to less consulting fees and managerial expense incurred.
Income before income tax from our continuing operations in the six months ended
Net income from continuing operations was approximately
Net income from discontinued operations was $nil and approximately
Net income was approximately
Basic and diluted earnings per share in the six months ended
Liquidity and capital resource
In assessing its liquidity, management monitors and analyzes the Company's cash on-hand, its ability to generate sufficient revenue sources in the future, and its operating and capital expenditure commitments. For the six months ended
As of
The Company believes that its cash on hand and internally generated cash flows will be sufficient to fund its operations for at least the next 12 months from the date of this report.
Recent Developments
On
On
About Golden Sun Education Group Limited
Established in 1997 and headquartered in
Forward-Looking Statements
Certain statements in this report are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any 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 other factors that may affect its future results in the Company's registration statement and other filings with the
For more information, please contact:
Investor Relations Department
Email: ir@cngsun.com
President
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Expressed in |
||||||||
As of |
As of |
|||||||
2022 |
2021 |
|||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash |
$ |
602,883 |
$ |
1,192,780 |
||||
Accounts receivable, net |
913,541 |
701,437 |
||||||
Accounts receivable - related party |
61,484 |
- |
||||||
Contract assets |
463,394 |
672,506 |
||||||
Prepayments and other current assets |
2,247,850 |
2,961,880 |
||||||
TOTAL CURRENT ASSETS |
4,289,152 |
5,528,603 |
||||||
Property and equipment, net |
462,997 |
374,618 |
||||||
Prepayments and other non-current assets |
245,095 |
185,640 |
||||||
Deferred issuance costs |
629,810 |
547,019 |
||||||
TOTAL ASSETS |
$ |
5,627,054 |
$ |
6,635,880 |
||||
LIABILITIES AND SHAREHOLDERS' DEFICIT |
||||||||
CURRENT LIABILITIES: |
||||||||
Short-term bank loans |
$ |
1,008,971 |
$ |
758,749 |
||||
Long-term bank loans, current portion |
1,204,458 |
309,693 |
||||||
Accounts payable |
482,851 |
210,782 |
||||||
Deferred revenue |
3,978,089 |
6,324,472 |
||||||
Accrued expenses and other liabilities |
720,212 |
586,701 |
||||||
Refund liability |
159,753 |
348,472 |
||||||
Loan from third party |
378,364 |
309,693 |
||||||
Taxes payable |
4,439,713 |
3,727,058 |
||||||
TOTAL CURRENT LIABILITIES |
12,372,411 |
12,575,620 |
||||||
Long-term bank loans |
- |
1,028,182 |
||||||
Due to related party |
643,975 |
672,560 |
||||||
TOTAL LIABILITIES |
13,016,386 |
14,276,362 |
||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
DEFICIT: |
||||||||
Ordinary shares, 100,000,000 shares authorized, consisting of 90,000,000 Class A |
||||||||
Class A ordinary shares |
4,485 |
4,485 |
||||||
Class B ordinary shares |
2,015 |
2,015 |
||||||
Additional paid in capital |
19,145 |
19,145 |
||||||
Statutory reserves |
1,016,463 |
857,370 |
||||||
Accumulated deficit |
(6,587,321) |
(6,760,297) |
||||||
Accumulated other comprehensive loss |
(1,812,246) |
(1,676,651) |
||||||
TOTAL SHAREHOLDERS' DEFICIT |
(7,357,459) |
(7,553,933) |
||||||
Non-controlling interests |
(31,873) |
(86,549) |
||||||
TOTAL DEFICIT |
(7,389,332) |
(7,640,482) |
||||||
TOTAL LIABILITIES AND DEFICIT |
$ |
5,627,054 |
$ |
6,635,880 |
* |
Shares and per share data are presented on a retroactive basis to reflect the recapitalization on |
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE |
||||||||
(Expressed in |
||||||||
For the six months ended |
||||||||
2022 |
2021 |
|||||||
Revenues |
$ |
7,205,568 |
$ |
7,396,978 |
||||
Cost of revenues |
3,250,545 |
2,945,676 |
||||||
Gross profit |
3,955,023 |
4,451,302 |
||||||
Operating expenses: |
||||||||
Selling expenses |
922,270 |
778,277 |
||||||
General and administrative expenses |
2,048,007 |
2,309,919 |
||||||
Total operating expenses |
2,970,277 |
3,088,196 |
||||||
Income from operations |
984,746 |
1,363,106 |
||||||
Other income (expense): |
||||||||
Interest expense, net |
(117,225) |
(73,087) |
||||||
Other income, net |
1,096 |
148,508 |
||||||
Total other income (expense), net |
(116,129) |
75,421 |
||||||
Income before income taxes |
868,617 |
1,438,527 |
||||||
Income taxes provision |
480,552 |
513,515 |
||||||
Net income from continuing operating |
388,065 |
925,012 |
||||||
Net income from discontinued operations, net of income taxes |
- |
645,586 |
||||||
Net income |
388,065 |
1,570,598 |
||||||
Less: net income attributable to non-controlling interests |
55,996 |
111,969 |
||||||
Net income attributable to the company |
332,069 |
1,458,629 |
||||||
Other comprehensive income |
||||||||
Foreign currency translation adjustment |
(136,915) |
(278,084) |
||||||
Comprehensive income |
251,150 |
1,292,514 |
||||||
Less: comprehensive income attributable to non-controlling interests |
54,676 |
102,251 |
||||||
Comprehensive income attributable to the company |
$ |
196,474 |
$ |
1,190,263 |
||||
Earnings per share - Basic and diluted |
$ |
0.0255 |
$ |
0.1122 |
||||
Continuing operations |
$ |
0.0255 |
$ |
0.0625 |
||||
Discontinued operations |
$ |
- |
$ |
0.0497 |
||||
Weighted average number of shares outstanding* |
||||||||
Basic and diluted |
13,000,000 |
13,000,000 |
* |
Shares and per share data are presented on a retroactive basis to reflect the recapitalization on |
View original content:https://www.prnewswire.com/news-releases/golden-sun-education-group-limited-reports-first-half-of-fiscal-year-2022-financial-results-301606911.html
SOURCE