Bojun Education Company Limited 博駿教育有限公司 (Incorporated in the Cayman Islands with Limited Liability) (Stock Code: 1758)

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Bojun Education Company Limited 博駿教育有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1758) Annual Results Announcement For The Year Ended 31 August 2020 HIGHLIGHTS For the year ended 31 August 2020 2019 Change Change RMB’000 RMB’000 RMB’000 Percentage Revenue 375,740 338,019 +37,721 +11.2% Gross profit 104,411 89,755 +14,656 +16.3% Profit for the year 15,242 28,941 –13,699 –47.3% Adjusted net profit* 15,760 28,998 –13,238 –45.7% * The adjusted net profit is presented because our management believes such information will be helpful for investors in assessing the level of net profit of the Company by eliminating the effects of certain one-off or non-recurring items. For the details of reconciliation to the most directly comparable financial measure calculated and presented in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”), which is profit for the year. Please refer to the section headed “Financial review – Adjusted net profit” in this announcement. As at the beginning of the school year Change 2019/2020 2018/2019 Change Percentage Total students enrolment 12,082 10,173 +1,909 +18.8% As at 31 August 2020 2019 Change Change RMB’000 RMB’000 RMB’000 Percentage Contract liabilities 369,348 350,837 +18,511 +5.3% – 1 – ANNUAL RESULTS FOR THE YEAR ENDED 31 AUGUST 2020 The board (the “Board”) of directors (the “Director(s)”) of Bojun Education Company Limited (the “Company”, together with its subsidiaries and consolidated affiliated entities (the “Consolidated Affiliated Entities”), the “Group”) is pleased to announce the consolidated annual results of the Group for the year ended 31 August 2020. CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 AUGUST 2020 Year ended 31 August 2020 2019 Notes RMB’000 RMB’000 Revenue from provision of education services 4 375,740 338,019 Costs of services (271,329) (248,264) Gross profit 104,411 89,755 Other (expenses) income 5 (3,547) 7,329 Other gains (losses) 4,805 8,473 Share result of an associate (16) – Administrative expenses (56,172) (53,634) Finance costs 6 (20,556) (6,549) Profit before tax 28,925 45,374 Income tax expenses 7 (13,683) (16,433) Profit for the year 8 15,242 28,941 Other comprehensive income that will not be reclassified subsequently to profit or loss — Remeasurement of defined benefit obligations 518 57 Total comprehensive income for the year 15,760 28,998 Profit for the year attributable to — owners of the Company 8,582 26,540 — non-controlling interests 6,660 2,401 15,242 28,941 Profit and total comprehensive income for the year attributable to — owners of the Company 9,100 26,597 — non-controlling interests 6,660 2,401 15,760 28,998 EARNINGS PER SHARE 15 — Basic (RMB) 0.01 0.03 (RMB) — Diluted N/A N/A – 2 – CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2020 As at 31 August 2020 2019 Notes RMB’000 RMB’000 Non-current assets Property, plant and equipment 1,311,630 1,106,119 Right-of-use assets 322,863 – Prepaid lease payments – 178,042 Interest in an associate 17,484 – Deferred tax assets 16,919 16,354 Deposits 9 24,070 24,958 Prepayments for purchase of property, plant and equipment 50,000 45,426 Total non-current assets 1,742,966 1,370,899 Current assets Prepaid lease payments – 3,922 Other receivables, deposits and prepayments 9 34,038 96,555 Amounts due from related companies 2,625 343 Bank balances and cash 426,772 336,647 Total current assets 463,435 437,467 Total assets 2,206,401 1,808,366 Current liabilities Other payables and accruals 10 321,484 377,190 Contract liabilities 369,348 350,837 Lease liabilities 8,146 – Borrowings 11 115,000 140,000 Income tax payable 40,507 31,049 Total current liabilities 854,485 899,076 Net current liabilities (391,050) (461,609) Total assets less current liabilities 1,351,916 909,290 – 3 – As at 31 August 2020 2019 Notes RMB’000 RMB’000 Non-current liabilities Lease liabilities 123,546 – Borrowings 11 301,500 – Defined benefit obligations 3,864 4,302 Deferred income 12 67,676 65,418 Total non-current liabilities 496,586 69,720 Net assets 855,330 839,570 Capital and reserves Share capital 7,138 7,138 Reserves 839,901 830,801 Equity attributable to owners of the Company 847,039 837,939 Non-controlling interests 8,291 1,631 855,330 839,570 – 4 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL INFORMATION The Company was incorporated and registered as an exempted company with limited liability in the Cayman Islands under the Companies Law Chapter 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands on 14 June 2016. On 31 July 2018, the Company’s shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The Company is an investment holding company. The subsidiaries of the Group, are mainly engaged in the provision of full spectrum private fundamental education, including preschool, primary, middle and high schools in the People’s Republic of China (the “PRC”). The functional currency of the Company is RMB, which is also the presentation currency of the consolidated financial statements. 2. BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS As at 31 August 2020, the Group’s current liabilities exceeds its current assets by approximately RMB391,050,000. Subsequent to the end of the reporting period, the Group entered into agreements to construct a new campus of approximately RMB36,857,000 and inject capital of RMB245,000,000 to a target company of which RMB122,500,000 is due within twelve months from 31 August 2020. The capital injection is subject to shareholders’ approval. Details are set out in the note 16 below headed “EVENTS AFTER REPORTING PERIOD”. In view of these, additional cash outflows will be required to settle further capital commitment in the coming twelve months from 31 August 2020. The above conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group’s ability to continue as a going concern and therefore, the Directors have reviewed the Group’s cash flow projections which cover a period of not less than twelve months from 31 August 2020. They are of the opinion that the Group will have sufficient working capital to meet its financial obligations, including those committed capital expenditures relating to investment in a target company and construction, that will be due in the coming twelve months from 31 August 2020 upon implementation of the following measures which will generate adequate financing and operating cash inflows for the Group: (i) To obtain new borrowing of approximately RMB299.0 million from a bank in the PRC which is under negotiation at the date of these consolidated financial statements; (ii) To negotiate with the constructor to extend the payment terms; (iii) The Group will continue actively seek other alternative financing, including borrowings, and reduce all non-essential costs. By taking the above measures, the Directors believe that the Group has sufficient working capital to meet the financial obligations when they fall due and the Directors are satisfied that it is appropriate to prepare these consolidated financial statements on a going concern basis. – 5 – 3. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) The Group has applied the following new and amendments to HKFRSs and new interpretation issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) for the first time in the current year: HKFRS 16 Leases HK(IFRIC)-Int 23 Uncertainty over Income Tax Treatments Amendments to HKFRS 9 Prepayment Features with Negative Compensation Amendments to HKAS 19 Plan Amendment, Curtailment or Settlement Amendments to HKAS 28 Long-term Interests in Associates and Joint Ventures Amendments to HKFRSs Annual Improvements to HKFRSs 2015–2017 Cycle Except as described below, the application of the new and amendments to HKFRSs and new interpretation in the current year has had no material impact on the Group’s financial performance and positions for the current and prior years and/or on the disclosures set out in these consolidated financial statements. 3.1 HKFRS 16 Lease The Group has applied HKFRS 16 for the first time in the current year. HKFRS 16 superseded HKAS 17 Leases and the related interpretations. Definition of a lease The Group has elected the practical expedient to apply HKFRS 16 to contracts that were previously identified as leases applying HKAS 17 and HK(IFRIC)-Int 4 Determining whether an Arrangement contains a Lease and not apply this standard to contracts that were not previously identified as containing a lease. Therefore, the Group has not reassessed contracts which already existed prior to the date of initial application. As a lessee The Group has applied HKFRS 16 retrospectively with the cumulative effect recognised at the date of initial application, 1 September 2019. As at 1 September 2019, the Group recognised additional lease liabilities and right-of-use assets at amounts equal to the related lease liabilities by applying HKFRS 16.C8(b)(ii) transition.

Load more