Visionary Education Technology Holdings Group Inc. Reports Fiscal Year 2022 Financial Results
Visionary Education Technology Holdings Group Inc. (NASDAQ: VEDU) reported a net loss of $56,474 for fiscal year 2022, a significant decline from a net income of $2.9 million in 2021. Revenues dropped 32.1% to $5.2 million, primarily due to a $4.3 million decrease in land sales. The gross profit margin fell to 49.8% from 55.2%. Despite the challenges, the company plans to invest in high-growth sectors, including international education and technology integration. Additionally, an IPO in May 2022 raised $14.3 million to support future expansions.
- Plans to invest in high-growth areas like international education and technology.
- IPO raised $14.3 million, enhancing financial resources for development.
- Increased rent revenue by 240.5% to $2.3 million, driven by new office buildings.
- Revenue decreased by $2.5 million, or 32.1%, compared to fiscal year 2021.
- Net loss reported at $56,474, down from a profit of $2.9 million previously.
- General and administrative expenses surged by 230.7% to $437,278.
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MARKHAM, Canada, August 12, 2022 /PRNewswire/ -- Visionary Education Technology Holdings Group Inc. (the "Company") (Nasdaq: VEDU), a private education provider located in Canada that offers high-quality education resources to students around the globe, today announced its financial results for the fiscal year ended March 31, 2022.
Fiscal Year 2022 Financial Highlights
- Revenues was
$5.2 million in fiscal year 2022, compared to$7.7 million in fiscal year 2021. - Gross profit margin was
49.8% in fiscal year 2022, compared to55.2% in fiscal year 2021. - Income from operations was
$1.0 million in fiscal year 2022, compared to$3.7 million in fiscal year 2021. - Net loss was
$56,474 in fiscal year 2022, compared to net income of$2,913,646 in fiscal year 2021.
Mr. David Xu, Chief Executive Officer and Chief Operating Officer of the Company, commented, "In fiscal year 2022, we have invested and consolidated our education resources and built a solid foundation for our future development. On May 17, 2022, we completed our initial public offering, which was an important milestone in the history of the Company. Becoming a publicly traded company provides us with more opportunities to continue developing our education resources. We plan to invest in more profitable and higher growth business areas such as high school education for international students, integrated platform of technology and education, online standardized artificial intelligence driven central platforms and offline personalized education services which are expected to drive exponential tuition revenue growth in the near future. In addition, we intend to close the purchase of the properties at 95-105 Moatfield Drive, Toronto this month. This education facility is expected to generate about
Fiscal Year 2022 Financial Results
Revenues
Revenues decreased by
For the Year Ended March 31, | ||||||||||||
2022 | 2021 | |||||||||||
($) | Revenue | Cost of Revenue | Gross Margin | Revenue | Cost of Revenue | Gross Margin | ||||||
Rent | 2,298,198 | 1,322,188 | 42.5 % | 674,898 | 256,981 | 61.9 % | ||||||
Tuition | 669,442 | 319,913 | 52.2 % | 358,241 | 124,762 | 65.2 % | ||||||
Construction | 8,117 | 4,663 | 42.6 % | 78,219 | 19,529 | 75.0 % | ||||||
Vacant land | 2,272,704 | 990,261 | 56.4 % | 6,613,863 | 3,058,175 | 53.8 % | ||||||
Total | 5,248,461 | 2,637,025 | 49.8 % | 7,725,221 | 3,459,447 | 55.2 % | ||||||
Revenue from rent increased by
Revenue from tuition income increased by
Revenue from the decoration and construction business decreased by
The Company sold 8 lots of vacant land in fiscal year 2022 and generated revenue of approximately
Gross Profit and Gross Margin
Total cost of revenue decreased by
Gross profit decreased by
Gross margins for rent business, education business, construction business and sales of vacant land were
General and Administrative Expenses
General and administrative expenses increased by
Professional Fees
Professional fees increased by
Salaries and Compensations
Salaries and compensations increased by
Interest Expense, Net
Interest expense increased by
Government Subsidies
In fiscal year 2022, the Company received
Impairment Expenses
In fiscal year 2022, the Company recorded impairment loss of
Other income
The Company had other income of
Provision for Income Taxes
Provision for income taxes decreased by
Net Income (Loss)
Net loss was
Balance Sheet
As of March 31, 2022, the Company had cash of
Cash Flow
Net cash provided by operating cash flow was
Net cash used in investing activities was
Net cash provided by financing activities was
Recent Development
Initial Public Offering
On May 19, 2022, the Company closed its IPO of 4,250,000 Common Shares at a public offering price of
Acquisition of Griggs International Academy China Co. Ltd.
On July 14, 2022, the Company entered into a Capital Increase and Share Expansion Agreement (the "Contribution Agreement") with Griggs International Academy China Co. Ltd. ("Griggs China"), a Hong Kong private consulting and investment holding company offering United States K-12 diploma programs and services of Griggs International Academy USA at four locations in China.. Pursuant to the Contribution Agreement, the Company has agreed to invest
On July 19, 2022, the Company signed a purchase agreement with the two principal shareholders of Griggs China to purchase their 1,000 shares for a total consideration of
About Visionary Education Technology Holdings Group Inc.
Visionary Education Technology Holdings Group Inc., headquartered in Markham, Canada, is a private education provider located in Canada that offers high-quality education resources to students around the globe. The Company aims to provide access to secondary, college, undergraduate and graduate and vocational education to students in Canada through technological innovation so that more people can learn, grow and succeed to their full potential. As a fully integrated provider of educational programs and services in Canada, the Company has been serving and will continue to serve both Canadian and international students. For more information, visit the Company's website at https://ir.visiongroupca.com.
Forward-Looking Statements
All statements other than statements of historical fact in this announcement 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 "believes," "expects," "anticipates," "estimates," "intends," "would," "continue," "should," "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 in its other filings with the SEC.
For more information, please contact:
Visionary Education Technology Holdings Group Inc.
Investor Relations Department
Email: ir@farvision.ca
Ascent Investors Relations LLC
Tina Xiao
President
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
VISIONARY EDUCATION TECHNOLOGY HOLDINGS GROUP INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(IN U.S. DOLLARS) | ||||||||
March 31, | March 31, | |||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash | $ | 741,868 | $ | 1,190,616 | ||||
Short-term investments | 56,021 | – | ||||||
Accounts receivable, net | 1,653 | 183,690 | ||||||
Accounts receivable - related party | – | 286,272 | ||||||
Prepaid and other receivable | 179,647 | 81,522 | ||||||
Inventories | – | 839,390 | ||||||
Due from related parties | 432,676 | 3,104,042 | ||||||
Loan receivable - current | 131,036 | – | ||||||
Related parties loan receivable - current | – | 105,898 | ||||||
Total current assets | 1,542,901 | 5,791,430 | ||||||
Restricted cash – non-current | 67,821 | – | ||||||
Property, plant and equipment, net | 23,240,470 | 4,469,767 | ||||||
Right of use assets | 958,477 | 35,445 | ||||||
Intangible assets, net | 1,082,061 | 428,061 | ||||||
Acquisition deposits | 7,364,241 | 2,496,790 | ||||||
Goodwill | 1,030,399 | – | ||||||
Loan receivable | – | 127,232 | ||||||
Deferred offering cost | 940,214 | – | ||||||
Related parties loan receivable – non-current | – | 318,377 | ||||||
TOTAL ASSETS | $ | 36,226,584 | $ | 13,667,102 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 278,544 | $ | 50,198 | ||||
Accrued liabilities | 1,465,318 | 120,149 | ||||||
Other tax payable | 1,435,045 | 1,020,329 | ||||||
Due to related parties | 7,219,022 | 1,471,191 | ||||||
Deferred revenue | 532,520 | 201,169 | ||||||
Lease liability - current | 211,600 | 16,150 | ||||||
Bank loans - current | 542,264 | 172,629 | ||||||
Income tax payable | 1,598,153 | 1,116,024 | ||||||
Total current liabilities | 13,282,466 | 4,167,839 | ||||||
Deferred tax liabilities | 243,762 | 33,627 | ||||||
Lease liability, non-current | 746,877 | 19,295 | ||||||
Bank loans, non-current | 18,278,316 | 6,214,428 | ||||||
TOTAL LIABILITIES | 32,551,421 | 10,435,189 | ||||||
Commitments | ||||||||
EQUITY | ||||||||
Common shares, no par value, unlimited shares authorized, 35,000,000 issued and outstanding* | – | – | ||||||
Additional paid-in capital | 665,985 | 665,985 | ||||||
Retained earnings | 2,587,747 | 2,577,998 | ||||||
Accumulated other comprehensive income | 185,179 | 163,295 | ||||||
Total shareholders' equity attributable to the Company | 3,438,911 | 3,407,278 | ||||||
Noncontrolling interest | 236,252 | (175,365) | ||||||
Total shareholders' equity | 3,675,163 | 3,231,913 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 36,226,584 | $ | 13,667,102 | ||||
* | Retroactively restated for effect of recapitalization |
VISIONARY EDUCATION TECHNOLOGY HOLDINGS GROUP INC. | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
AND COMPREHENSIVE INCOME | ||||||||
(IN U.S. DOLLARS) | ||||||||
For the Years Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenue – rent | $ | 2,298,198 | $ | 674,898 | ||||
Revenue – tuition | 669,442 | 358,241 | ||||||
Revenue – construction | 8,117 | 78,219 | ||||||
Revenue – sales of land | 2,272,704 | 6,613,863 | ||||||
Total Revenues | 5,248,461 | 7,725,221 | ||||||
Cost of revenue – rent | 1,322,188 | 256,981 | ||||||
Cost of revenue – tuition | 319,913 | 124,762 | ||||||
Cost of revenue – construction | 4,663 | 19,529 | ||||||
Cost of revenue – sales of land | 990,261 | 3,058,175 | ||||||
Total cost of revenues | 2,637,025 | 3,459,447 | ||||||
Gross Profit | 2,611,436 | 4,265,774 | ||||||
Operating expenses: | ||||||||
General and administrative expenses | 437,278 | 132,224 | ||||||
Professional fees | 350,636 | 211,517 | ||||||
Salaries | 792,546 | 193,247 | ||||||
Total operating expenses | 1,580,460 | 536,988 | ||||||
Income from operations | 1,030,976 | 3,728,786 | ||||||
Other (expense) income | ||||||||
Interest expense | (906,398) | (141,690) | ||||||
Impairment loss | (379,165) | – | ||||||
Government subsidies | 490,171 | 84,657 | ||||||
Other income | 20,709 | 245,019 | ||||||
Total other (expense) income, net | (774,683) | 187,986 | ||||||
Income before income taxes | 256,293 | 3,916,772 | ||||||
Provision for income taxes - current | (312,767) | (1,003,126) | ||||||
Net (loss) income | (56,474) | 2,913,646 | ||||||
Less: net loss (income) attributable to noncontrolling interest | 66,223 | (46,789) | ||||||
Net income attributable to Visionary Education Technology Holdings Group | 9,749 | 2,866,857 | ||||||
Other comprehensive income: | ||||||||
Foreign currency translation gain | 26,333 | 164,684 | ||||||
Comprehensive (loss) income | (30,141) | 3,078,330 | ||||||
Less: comprehensive loss (income) attributable to noncontrolling interest | 61,774 | (23,626) | ||||||
Comprehensive income attributable to Visionary Education Technology Holdings Group | $ | 31,633 | $ | 3,054,704 | ||||
Earnings Per share | ||||||||
Basic and diluted | $ | (0.00) | $ | 0.08 | ||||
Weighted Average Shares Outstanding* | ||||||||
Basic and diluted | 35,000,000 | 35,000,000 | ||||||
* Retroactively restated for effect of recapitalization
VISIONARY EDUCATION TECHNOLOGY HOLDINGS GROUP INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(IN U.S. DOLLARS) | ||||||||
For the Years Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (56,474) | $ | 2,913,646 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 494,729 | 53,763 | ||||||
Gain recognized on government subsidy | 22,883 | (45,450) | ||||||
Impairment loss on intangible assets and goodwill | 379,165 | – | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 202,741 | (174,982) | ||||||
Accounts receivable from related party | 167,550 | (272,700) | ||||||
Inventories | 842,346 | 2,686,597 | ||||||
Prepayments and other current assets | (97,322) | (77,657) | ||||||
Due from related party | 2,114,745 | (2,692,545) | ||||||
Accounts payables | 227,370 | 37,367 | ||||||
Accrued liabilities | 854,071 | 114,453 | ||||||
Other tax payable | 406,999 | 877,215 | ||||||
Deferred revenue | 329,113 | 9,796 | ||||||
Taxes payable | 473,607 | 1,010,214 | ||||||
Net cash provided by operating activities | 6,361,523 | 4,439,717 | ||||||
Cash flows from investing activities: | ||||||||
Acquisition of business | (471,550) | (151,500) | ||||||
Acquisition deposit | (17,016,884) | (2,378,418) | ||||||
Purchase additional shares from NCI | – | (31,808) | ||||||
Loan advance to related parties | 425,770 | (377,785) | ||||||
Refund of land deposit | 52,668 | – | ||||||
Short-term investment | (55,860) | – | ||||||
Loan advance to unrelated parties | (2,979) | (121,200) | ||||||
Acquisition deposits | (7,215,396) | – | ||||||
Net cash used in investing activities | (24,284,231) | (3,060,711) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from bank loan | 85,909 | 136,350 | ||||||
Proceeds from mortgage | 12,768,000 | 6,060,000 | ||||||
Finance costs on mortgage | (49,928) | (30,300) | ||||||
Deferred offering costs | (451,049) | – | ||||||
Repayment of mortgage | (469,921) | (2,565,470) | ||||||
Proceeds (Repayment) of shareholder advance | 5,652,248 | (3,995,358) | ||||||
Net cash provided by (used in) financing activities | 17,535,259 | (394,778) | ||||||
Effect of exchange rate changes on cash | 6,522 | 96,528 | ||||||
Net increase (decrease) in cash | (380,927) | 1,080,756 | ||||||
Cash and restricted cash, beginning of the year | 1,190,616 | 109,860 | ||||||
Cash and restricted cash, end of the year | $ | 809,689 | $ | 1,190,616 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid for income tax | $ | – | $ | – | ||||
Cash paid for interest | $ | 906,398 | $ | 117,708 | ||||
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SOURCE Visionary Education Technology Holdings Group Inc.
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