SHANGHAI, Aug. 16,
2022 /PRNewswire/ -- Golden Sun Education Group
Limited (the "Company" or "Golden
Sun") (NASDAQ: GSUN), a provider of tutorial services in
China, today announced its
financial results for the first six months ended March 31, 2022.
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 ended March 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 of September 30, 2021.
Mr. Xueyuan Weng, Chairman and Chief Executive Officer of
Golden Sun, commented, "For the
first half of fiscal year 2022, due to the larger costs and
expenses related to expanding our market, our net profit decreased
compared to the same period of fiscal year 2021. We are dedicated
in our efforts to seize market opportunities to expand our business
and provide high-quality services to our customers. Leveraging our
extensive expertise in tutorial services, we believe we are well
positioned to capture growth opportunities, expand market share,
and achieve long-term development goals. At the same time, we are
focused on strengthening relationships with our customers to
further expand our customer base. Looking ahead, we expect to
continue to invest in our business, improve our brand awareness,
and build momentum towards our growth objectives."
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 March 31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
Amount
|
|
|
%
|
|
Revenue by
type
|
|
Amount
|
|
|
% of
total revenue
|
|
|
Amount
|
|
|
% of
total revenue
|
|
|
Increase
(Decrease)
|
|
|
Increase
(Decrease)
|
|
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 March 31, 2022 decreased by 3% to approximately
$7.2 million from approximately
$7.4 million in the same period of
fiscal year 2021, which was driven by a decrease of
approximately $0.2 million from
tutorial services revenue as compared to the same period of fiscal
year 2021.
Our tutorial services revenue in the six months ended
March 31, 2022 decreased by
approximately $0.2 million, or 3%, to
approximately $6.4 million from
approximately $6.6 million in the
same period of fiscal year 2021. The total number of student
enrollments in our tutorial programs in the six months ended
March 31, 2022 decreased by 131 to an
aggregate of 6,971 from an aggregate of 7,102 students in the same
period of fiscal year 2021. Our average revenue recognized per
student in the six months ended March 31,
2022 decreased by $10 to
$916 from $926 in the same period of fiscal year 2021.
Our logistic and consulting services revenue in each of the six
months ended March 31, 2022 and 2021
was approximately $0.8 million.
Cost of revenues in the six months ended
March 31, 2022 increased by 10%
to approximately $3.3
million from approximately $2.9
million in the same period of fiscal year 2021, largely as a
result of the additional costs incurred for new teachers hired and
management fees for our non-English foreign languages tutorial
program, due to the expansion of our non-English foreign languages
tutorial program in fiscal year 2021.
Gross profit 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.The decrease was primary due to the
increased salaries to attract more teachers in the six months ended
March 31, 2022.
Operating Expenses
|
|
For the six months
ended March 31,
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
% of
revenue
|
|
|
Amount
|
|
|
% of
revenue
|
|
|
Amount
Increase
(Decrease)
|
|
|
%
Increase
(Decrease)
|
|
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
March 31, 2022 decreased by 4% to
approximately $3.0 million from approximately $3.1
million in the same period of fiscal year 2021. The decrease
was mainly due to less general and administrative expenses as
compared to the same period of fiscal year 2021.
- 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 ended March 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 March 31,
2022 decreased by 40% to approximately $0.9 million as compared to approximately
$1.4 million in the same period of
fiscal year 2021.
Net income from continuing operations was
approximately $0.4 million in the six
months ended March 31, 2022, compared
to approximately $0.9 million in the
same period of fiscal year 2021, due to the above mention
reasons.
Net income from discontinued operations was $nil and
approximately $0.6 million in the six
months ended March 31, 2022 and 2021,
respectively.
Net income was approximately $0.4
million and $1.6 million in
the six months ended March 31, 2022
and 2021, respectively. The decrease was primarily due to an
approximately $0.6 million decrease
in net income from discontinued operations and an approximately
$0.5 million decrease in net income
from continuing operations.
Basic and diluted earnings per share in the six
months ended March 31, 2022 were
both $0.0255. In comparison, basic and diluted net income per
ordinary share in the same period of fiscal year 2021
were both $0.1122.
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 March
31, 2022 and 2021, the Company recorded net income from
continuing operation of approximately $0.4
million and $0.9 million,
respectively. The Company had negative working capital of
approximately $8.1 million as of
March 31, 2022, which was largely
attributed to unearned tuition advances of approximately
$4.0 million. These deferred tuition
payments will be recognized as revenue in the next fiscal year when
the services are provided. The Company has historically funded its
working capital needs primarily from operations, bank loans,
borrowings from third parties, and advances from shareholders, and
it intends to continue doing so in the near future.
As of March 31, 2022, the Company
had cash on hand of approximately $0.6
million and outstanding bank loans of approximately
$2.2 million. Management expects that
it would be able to renew all of its existing bank loans upon their
maturity, based on past experience and the Company's credit
history. On June 24, 2022, the
Company completed its public offering ("IPO") of 5,060,000 Class A
ordinary shares at a public offering price of $4.0 per share. The Company received aggregate
gross proceeds of US$20,240,000 from
the IPO, before deducting underwriting discounts and other related
expenses.
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 March 27, 2022, the government
of Shanghai City announced a
lockdown of the city, in order to control the resurgence of the
Omicron variant of COVID-19. The Company temporarily closed its
Shanghai facilities and started to
provide online programs to students to minimize the lockdown
impact. The lockdown in Shanghai
did not impact the Company's operation results for the six months
ended March 31, 2022, but, to some
extent, adversely affected its results of operations for April and
May 2022. Starting from June 1, 2022, Shanghai City began easing the lockdown
restrictions and the Company reopened its Shanghai facilities.
On June 24, 2022, the Company
completed its IPO of 5,060,000 Class A ordinary shares at a public
offering price of $4.00 per share.
The Company received aggregate gross proceeds of US$20,240,000 from the offering, before deducting
underwriting discounts and other related expenses. The Class A
ordinary shares began trading on the Nasdaq Capital Market on
June 22, 2022 under the ticker symbol
"GSUN." In connection with the IPO, the Company granted the
underwriter warrants to purchase 379,500 Class A ordinary share at
a price of $5.20 per share. On
June 29, 2022, the underwriter
exercised its warrants in full on a cashless basis to receive
295,491 Class A ordinary shares, which were subsequently issued to
the underwriter on July 18, 2022. As
of the date of this report, the Company has an aggregated
18,355,491 ordinary shares issued and outstanding, consisting of
14,325,491 Class A ordinary shares and 4,030,000 Class B ordinary
shares.
About Golden Sun Education Group Limited
Established in 1997 and headquartered in Shanghai, China, Golden Sun Education Group
Limited is a provider of tutorial services in China focusing on the development of each of
its student's strengths and potential, and the promotion of
life-long skills and interests in learning. Golden Sun has three tutorial centers, one
educational company that partners with high schools to offer
language classes to its students, and one logistics company that
provides logistic and consulting services. The tutorial centers of
Golden Sun focus on different groups
of targeted students by offering different tutorial programs. As
for foreign language tutoring, Golden
Sun offers English, Spanish, German, French and Japanese
courses to students who intend to study abroad, individuals seeking
jobs that require certain proficiency in these languages, and
companies or organizations whose workers need to have certain
proficiency in these languages. For more information, visit the
Company's website at ir.jtyjyjt.com.
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 SEC.
For more information, please contact:
Golden Sun Education Group Limited
Investor Relations Department
Email: ir@cngsun.com
Ascent Investors Relations LLC
Tina Xiao
President
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
GOLDEN SUN EDUCATION
GROUP LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Expressed in U.S.
dollar, except for the number of shares)
|
|
|
|
As of
March 31,
|
|
|
As of
September 30,
|
|
|
|
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
ordinary shares of $0.0005 par value per share
and 10,000,000 Class B ordinary
shares of $0.0005 par value per share,
8,970,000 Class A ordinary shares and
4,030,000 Class B ordinary shares issued and
outstanding at March 31, 2022 and
September 30, 2021*
|
|
|
|
|
|
|
|
|
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 December 5, 2020,
April 24, 2021 and September 30, 2021.
|
GOLDEN SUN EDUCATION
GROUP LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
(Expressed in U.S. dollar, except for
the number of shares)
|
|
|
|
For the six months
ended
March 31,
|
|
|
|
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 December 5, 2020,
April 24, 2021 and September 30, 2021.
|
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 Golden Sun Education Group Limited