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    17 views40 pages

    Audit Analysis From Manager3

    Uploaded by

    Robert Manjo

    Copyright:

    © All Rights Reserved
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    / ot / bee (2003 INDEPENDENT AUDITOR'S REPORT elite J partners ‘To the shareholders of Virscend Education Company Limited ds with inited tabi) (incorporate inthe Cayman Is OPINION ‘We have auited the consolidated financial statements of Virscend Education Company Limited (the “Company”) and its subsidiaries (collectively referredo as the “Group”) set out on o “ ‘which comprise the consolidated statement of financial position as at 31 August 2023, andthe consolidated statement of profit or loss consolidated statement of comprehensive income, conslidaed statement of changes in equity’ and consolidated statement of cashflows {or the year then ended, and notes othe conslidsted financial statements including a sumomary of significant accountng polices. nour opinion, the consolidated finucial statements give a true and fair view ofthe consolidated financial position of the Group ab at 31 ‘August 2023, and of its consolidated financial performance and its consolidated cash flows for the year then ended in aceordance with International Financial Reporting Standards (“IFRS6") issue by the International Accounting Standards Board ASB")‘and have been ‘Properly prepared in compliance with the disclosuré requirements ofthe Hong Kong Companies Ordinance. “ BASIS FOR OPINION ‘We conducted our uditin accordance with Hong Kong Standards on Auditing (“HKSAr") ised by the Hong Kong Institute of Certified Public Accountants HKICPA"), Our responsibilities under those standards ae further describe inthe Auditor's Responsibilities forthe ‘Audit ofthe Consolidated Financial Statements setion of ur repo We ae independeat ofthe Group in accordance withthe HKICPA’s Code of Ethics for Professional Accountants (the “Code”), and we have filled ou other ethical responsibiltes i accordance withthe Code. We believe thatthe aut evidence we have cbiined is sufficient and appropri o provides bass frau opinion. Adil Unadivts Rete To Ging Concert 2 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ACS August 2023 C ans ( 2m / Notes RMB"000 RMB'0o0 [NON-CURRENT ASSETS é Property, plant and equipment On Cagsss1 — C2aazaso |) Rightof-use assets ( 14@) (600,278 C 624,798 oi Cs Sa ine | Goodwill (16 © sone ¢ 06258 | Long-term pledged deposits on 61,460 (36220 | Other non-curent assets oo 6 3B © 165400 Deferred tx assets 9 ¢ 2008 / - | ‘otal non-curent assets 3510881 394,838 tlic to ae | ‘CURRENT ASSETS. propre cchowe ~ 4 Inventories FP ycdy adeewe? Saas 24 Tine is Oo (pst 00 Prepayments and other rcsivables cu 6230865 Cia Financial asses at fir valve through profit or oss (a “35360 sea Cash and eash equivalents CB £16413 / 389265 ‘otal curent assets 1024.38 miso CURRENT LIABILITIES A | ‘Trade payables Cu Cie (138 ther payblos and acre (as Casas (155,680 Financial euarante contracts cae C1383 C4539 Interet-bearing bank and other borrowings Con (song Caan | Lease isblces 6) 13481 (316 Texpayable L 23.643 24361 ‘Contract liabilities 2B < 676,584 ad Defered income ( » C8 C13 ‘otal cumen abilities 1,755,561 1294850 | [NET CURRENT LIABILITIES / (1,79) (623,549) TOTAL ASSETS LESS CURRENT LIABILITIES 279,02 247.289 | _ ams mm Notes RMp'o00 RMB'000 /NON-CURRENT LIABILITIES é Interest-bearing bank and other borrowings On craig CO 72468) ‘Lease isbites ao) 3381 455 Decedincome <2 oo. «aus | (Contact Liabilities (oe (sis 6 116.869 Other payables cas 6 ase 1698 | ‘Amounts due to related parties os 187 L34BAB | ‘otal non-cuent ible 193696 1872967 — | A a) ‘ zea] | a4 7 s40204 ‘Non contlling interests < “2s Toral equity M2 AON ahigmet, f ‘The consolidated financial statements on pages [**) o [**] were approved and authorised for ieue by the board of directors on 29 ‘November 223 and wee signed on is bebalf by: ‘Wang Xinoying Yesiayu Director Director CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Forth year ended 31 August 2003. ‘eye Eadnp—pi Ne See Gil lt ated fae i een ee er vera Seplenbe 094 {= xh owe Patchy | - - ~ 7 — Cum us Cau came pie gm cee wed nfl salle el 89 wae anyone” foams - Tempe meneoyen ear - - - = am Cm Cem Cam eine epic = am - - - = my = gaien Shores GrdhetaaGe eons tA eet marae ee ete freee - - - = mm met in Tes epee neoyee ee SS SS SO SS : ny ne CONSOLIDATED STATEMENT OF CASH FLOWS, For the year ended 31 August 2023, 202 Notes RMB'000 CCASHLFLOWS FROM OPERATING ACTIVITIES = Profit before ax Caan Adjustment for Finance costs Chena Impairment losses on financial asses, net C3997 Bank intrest ncome os 467) Loan interest income os = (04) ‘Other nee income «5 (122,823) Principal portion of lease payments piatypl ttt 2 > €,832) (1420) Interest paid wlohe IS4> (108,378) (87,703) Proceads from related party loans ender) tole) = - Purchase of shares for share award scheme Coy (7,706 Repayment felted party loans A 4184266) Netcash generated fronted) Snancing activites Mish 368,585 269,891) ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS [NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 361579 241350) Cash and cash equivalent beginning of year 631,738 Effect of freien exchange rate changes, net en (20) ‘CASH AND CASH EQUIVALENTS AT END OF YEAR 2s 756,413 ‘Cash and cash equivalents as stated in th consolidated statement of cath lows 756413 389265 u NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the yearend 31 Angust 2023, CORPORATE AND GROUP INFORMATION Vircend Education Company Limited (the “Compeny”) was incorporate in the Cayman Islands on 13 March 2015 as an exempted ‘company with limited ibility under the Companies Law (2013 Revision) ofthe Cayman Islands. Is patent is Vitscend Holdings Company Limited, which was incorporate inthe British Virgin Island (te“BVI’), end it ultimate controling shareholder is Mr. ‘Yan Yuale, whois als the director ofthe Company. The address ofthe registered office ofthe Company is Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands. The shares of the Company were listed on the Main Board of the Sock Exchange of Hong Kong Limits (he Stock Exchange") 0015 Jnr 2015 (he Listing Date), ‘The pripl cy of he Company is invenent oling Ding te eared 31 Avg 2024 (pete), th Company snd is susie (otvlyrefralo the “Croup” were rinipally engaged in te provision af pated services inthe Peoples Repl of hina (he“PRC™. Tee tbe 0 sina’ hangs inh Group's pina activites ding he con year an the pr prio Particulars of principal subsidiaries aA Particulars ofthe Companys principal subsidiaries during the year ended 31 August 2023 snd 2022 areas follows: ae cevesend pcabtin see! aang " tnt ste Fremtn at mettre ad «nde c#)) of (a) Soe setae hc ‘esl Coe nip ism sine ose ns vase wey dg ope ite wa secs) 00 STi atte Noging = cg oaks ecm} Tech hi / eae mio] aa SgenCiming tala ‘mes =m maesnesnnncs i) ne Sen / sey 28 ee er Inn ery ane ast ove) Ce iseaxeanen (eve 8) hihi 2k wom SK Sigs pen eK) . aye ode a RESRERRERIROS sen Clete as ec WK =) Bee a snc some oi ANKANROREEDHEHAR Hay DT pethnwea = MHD = 457, Daim of gh at she PRE 2 CO) Shaad thaerbem wees, A Be Rahn AS Bahu he » 1, CORPORATE AND GROUP INFORMATION ~ CONTINUED Particulars of principal subsidiaries ~ Continued esti see gy ope Pcp en dagen sips oma shale / Sey ame = me an nti sRamARereRnas ane sin ins imme Shae sng, iam =m = baat ee ed stein Clipe Fossa ia / Ser 0100 = i Avo EMOAMHORANAT eC Shang Cia. / Neer, eam = =a naan BGR ere ines ean Sain Ctng 28g Pane = = ay eaten temas one nyse ivi Cnuy Lind “9h, ‘ome = ow = Peni eg tamenxsna3 cng alse Cheops / ee, ne — mw = am 7 ret as Seta a Cage ene ssa coin AsO 1m ensaseaRKER) Cute fyingWeithesin Samay me me = aan ueRcenmETNASS Case eon / 2 308, eo. — wwe — i pineaetn erennasnn3, tenga Eben / TR. ne ~ me = 8 setters ahi, Lt nme 2a tinea ta RennenARZD heh Ze ing ot, exes - owe = 98 atm tpn Sa verte (extort ABRRERERZERHEDS ie dain eng, oy = me = v8 in tatenn aig. omc ume seiner AbEEERRANRES A) ea ead ee awsome = pce = ae setts eanennecen ere argent / denegistesd in ror, con dalele 7 CORPORATE AND GROUP INFORMATION - CONTINUED Particulars of principal subsidiaries ~ Continued ‘The English names of certain subsidiaries represen the best effort by the management ofthe Group in translating their Chinese ‘names 35 they do not have an ofiial English name, [None ofthe subsidiaries ha issued any debt securities during the year or outstanding atthe end of the year, ‘The above table shows the subsidiaries ofthe Company which, inthe opinion ofthe dirctors ofthe Company, principally affected tho results or sstets and liabilities of the Group. To give details of other subsidities woul, inthe opinion ofthe directors ofthe ‘Company, result in particulars of excessive length Notes: © outs\nta 6 ia Del Eps Dorspen CaS Dena ata Wee Rg t= hata san Weare) EXT AAHONRET cmd cso nas ee Tots cca pnt Hab Wren boeestene oOhoae & tielnons icin Gen tec eontoounfhesesine Ors Noses 16s pt scuba. pw Sen av amameeco se ootwentos oust tie ane, huwatot ors nescence reps eae oestaree © e) _Reisera ar «whol-freign-owned enterprise under PRC a e 24 (©) Accountedforas subsidiaries by virtue ofthe Group's contol over them. (0 Haasan gncmepmenaegeecimasesnge fy wemmdddel ol wdelel foe he supe 3 end Senza sthah Jus ¥ BASIS OF PREPARATION yest “D038 These consolidated finncial statements have been prepared in accorfance with International Financial Reporting Standards (CIERSS"y, which compris all standards and interpretations issue by the Intemational Accounting Standards Board (“TASB"Y and the dsefosurd requirements of the Hong Kong Companies Ordinance. These consolidated financial statements have been prepared under the historical cost convention, except for certain Financial intrumens that are measured at fair value throuh proGto loss, and financial guarantee contracts which have been measured at fr val, These consolidated financial statements ae presented in [RMB and all value ae rounded to the nearest thousand except when otherwise indicted. Going concern basis 0 gC ‘The Group had net current lablities Of approximately RMB73 1,179,000 (2022: RMB823,$49,000) as at 31 August 2023. Included {nthe curren abilities as at 31 August 2023 were contrat Habiltes of RMB676,584,000 (2022: RMB463,626,000). [Notwithstanding te aforesaid conition, the consolidated financial statements have been prepared ona gong concer bass on the ‘sssumption thatthe Group willbe able to operate as a going concer forthe foreseeable future based on the following assessment and remedial actions taken by the directors ofthe Company’ (the directors of the Company have reviewed the Group's cashflow forcast prepared by the management, which covered a petiod of not less than twelve months fiom 31 August 2023. Inthe opinion ofthe diectors ofthe Company, the Group will have sufficient working capital to meet its financial obligation as and wien they fall due and carry on is business without 9 significant caraiment of operation of notes thn relve mons fom 3 Aust 2025; SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES ~ CONTINUED Estimation uncertainty ‘The key assumptions concerning the future and other key sources of estimation uncertainty athe end ofthe reporting period, that have a significant risk of causing material adjustment tothe camrying amounts of astts and lisbilitis within the next financial period, are described below. Provision for expected credit losses on financial assets at amortised cost ‘The Group estimates a provision rate to calculate ECL for financial assets at amortsed cost. The provision rates are based on days ast due for groupings of various customer segments tat have similar los patterns (Le, by geography, product type, customer type and rating, and coverage by letters of credit and other forms of credit insurance), ‘The provision rates initially based on the Groups historical observed default rates. The Group wil calibrate the rate to adjust the historical crditloss experience wth forward-looking information, For instance, if forecast economic conditions (ie. gross domestic product) are expected to deteriorate over the next period which can lea to an inereased number of defauls in the related sector, the Iistorcal default rates are adjusted. At each reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed ‘The assessment ofthe correlation among historical observed default ats, forecast economic conditions and ECL is a significant estimate, The amount of ECLs i sensitive to changes in circumstances and forecast evonomie conditions. The Group's historical credit loss experience and forecast of economic conditions may also not be representative ofa customer's actual default inthe future Impairment of non-financial assets (other thon goodwill) ‘The Group assesses whether there are say indicators of impairment for all non-financial asets, including property, plant and equipment, rightof use asses and other intangible assets, a the end ofthe reporting period. The non-financial ase are tested for ‘impairment when thee are indicators thatthe carying aunts may not be recoverable. Impairment exists when the carrying value of an asset or a cash-geneating unit exceed its recoverable amount, which is the higher aft fair value ess costs to sell and its in ofthe fir valueless cost o sll ebesed on available data from binding sales transactions inan arm's length transaction of similar assets or observable matket prices less incremental costs for disposing ofthe asset, When vale in use ‘vale in use. The calcul calculations are undertaken, management must estimate the expected future cashflows from the asset or cash- generating unit and choose a suitable discount rte in order to calulate the present value of those cash flows, Impairment of goodwill ‘The Group determines whether goodwill 's impaired atleast on an annual basis. This requires an estimation ofthe value in use of ‘te eas generating units fo Which the goodwill is allocated. Estimating the value n se raquires the Group to make an estimate of the expected future cashflows from the cash-generating units and also to choose a suitable discount rate in onder o calculate the sent va of thse cash lows The crying amount of good a 31 August 2023 was RMB 104,298,000 (31 Angst 2022: [RMBIO0$,298,000), Purher deals ae disclosed in note 17. ( “ (6 40 OS. REVENUE, OTHER INCOME AND OTHER GAINS / ‘An analysis of revenue, other income and other gins i as follows 2023 2022 / Noes RMBW0 ___RMB'000 Reveme fom contracts with ewstomer (aot). / Tutdon fee cassis 436266 ‘School eanteen operation foes 60487 40167 Boasling foes 49,160 31.71 on-oral education services fee 20175 1933 Consutation services fos fr overseas stuis* 008 29 eational management and conlation services es** 25900 aio. otters 21026 2133 Cages 55108 ‘Other income and other gains ‘ . Bank interest income Fenn scans ribs tne contin whee) wen us Depeiton oper et en ep 1 SL] rane ons _Amortisation of other intangible assets 1s 6 Dede? 25877 2571 Depeitonfraboture wes nos Cen Css tpeimen oe el ent ar: 20 5 7 iader emmron auslod ipsa 157 sudtsonce ee ote 0 =non-audit service shood be nash? 9 80 bakin nome a 6 ‘terme nome om aaa) ori xclng fleece, any aan Canon dap ofe vce = aaiain f Canon demon lcs » us 2 inane a amt - luhs ? oe aa — Pag, bce Nas ms dinptsh of Franch prints "oc hays %= WET TOTS, 236) 0 rat ee ee enn ineeh sinew emer oer FINANCE COSTS / Ancaster fo coming option is ow: 23 ea 1 - Rowine R000 soe on md ob browns roe 703 Inert a bi (386 oa ‘om ae apa om) tas C9678 8644 | a DIRECTORS’ AND CHIEF EXECUTIVE’S REMUNERATION, Moro) te, an (ofthe Hong Kong Companies OrinanceandPart2of the Companies (Disclosure a laformaton abou Benefis of Dieses) | next Regulation, as follows: wee Directors’ and chiefexecutve's remuneration forthe yearperiod, disclosed pursuant othe Listing Rules, setion 383(1 20m 45 2023 Dory RMB’000 RMB'000 Selaies, allowances and other benefits in kind 426 4.069 Discretionary bonus 7 “4 Pension scheme contibusions 56 37 4382 4,170 ‘Taxes on profits assessable elsewhere have been calculated atthe tx rate prevailing inthe countries in which the Group operates ms 20m RMB'000 RMB‘000 Sass sat! stato 1S I86 C3 Tie oer apne yr ome pt eed en fpr toe #29 mwa nine en S415 4422 54315 4422— ‘Tax ate statutory tx rate 13579 1,106 Profits not subject to tx 287) (5039) Adjustments i reepect of curent ax of previous periods 2.26 410 ‘Tax losses nt recognised 12,800 4,054 ‘Tax charge atthe Group's effective rate 15754 531 ‘Tax charge from continuing operation at the effective rate 15,754 S31 Pursuant to the PRC Corporate Income Tax Law, a 10% withholding taxis levied on dividends decared to Foreign investors fom the foreign investment enterprises established in Maioland China. The requirement is effective fom 1 January 2008 and applies to ‘estmngs afer 31 December 2007. A lower withbolding tax rte may be applied if thre is tax treaty between Mainland China and the jurisdiction of the foreign investors For the Group, the applicable rate is 10%. The Group is therefore liable for withholding ‘axes on dividends distributed by thse subsidiaries established in Mainland China in respect of earnings generated fom | January 2008, ‘As at31 August 2023, no defered tax as been recognise for withholding taxes that would be payable onthe unremited earnings that are subject to withholding taxes ofthe Group's subsidiaries established in Mainland China (31 August 2022: nil) In the opinion ‘ofthe directors, the Group’s fund wil be retained in Mainland China fo the expansion ofthe Group's operation 50 itis not probable ‘hat these subsidiaries will distribute such earings inthe foreseeable future ‘There are no income tx consequences attaching to the payment of dividends by the Company tits sharcholdes. 1. DIVIDENDS ‘Subsequent tothe end of the Reporting Period, a final dividend of HKDO.4 cents per share end a special dividend of HKD.7 cents er shate in respect ofthe year ended 31 August 2023 (2022: nil) has been proposed by the Board and is subject to approval by the shareholders atthe forthcoming annual general meeting of the Company. the Beek Hab mot weomed Ne paguet aj iabie divided Jor the gi, woth toded 18 Febea od). 1 Febimnny os OL = (12 EARNINGS PER SHARE / ‘The calculation ofthe basic earnings per share amount is based on the profit fr the year atributable to ordinary equity holders of ‘the Company, and the weighted average number of ordinary shares of 3,043,111,000 (year ended 31 August 2022: 3,055 350,000) {in issue during the Reporting Period. ‘There were no porentallydilutive ordinary shares in issue during the year ended 31 August 2023 and the year ended 31 August 2022, and therefore the diluted earnings per share amounts were equivalent tothe basic earnings per share amounts ‘The caleulations of base and diluted earings per share ae bated on ames nom ows soo mings sible © onary emi Hldon of he pat fr he pupae of eal tsc an uted caing pr shre m2 niseo (S Number of shares 1 Weigted vege umber of nay sain ise ing heya fr te use ase sass ( Bosc nes camingpersbre (earesitin RMB fenper shar) Bh alien oe Te sing unr oon her pa fn et a ph ete ene Anat 20 ase ed ste ng esse at fe Coy tf. ‘No ajrieat as been id tthe bs cmings pet share moun forth yer dad 3 August 223 and 2022 inept of toother comprehensive income ACSI August 2023, 2008 2.008 Bry DTA en tan bes ad secogined ? peoyrtesed 7 20. TRADE RECEIVABLES Bag of act wtcoytined 2 / > aon ( aon. RMm000 ___RME"000 Tine reccvables non sano ess allowance for eet ses « em i901 << 4200 ‘Trade receivables mainly arose fiom the provision of consulting services for education. Process in respect of the provision of consulting services i setled in accordance with the terms stipulated inthe consulting services agreements ‘An ageing analysis of trade receivables net of allowance for credit losses as at the end ofthe reporting period, presented based on the invoice dates, as follows: 5 21. TRADE RECEIVABLES- CONTINUED ‘The movement inthe allowance for credit losses on trade receivables i s follows: Lifetime ECL (cree Spied) RMs‘000 Beerdl dcng the yar a Wioming te yer 2600) ‘ALB August 2023. Cw As at 31 August 2023 and 2022, the expected credit losses on trade receivables are estimated on an individual basis. a ¢ 21, PREPAYMENTS AND OTHER RECEIVABLES SMAugust 31 August ams ( am / ___ropon0 ___Rav'000 5 \ nets and other receivables ara #1 ) tambecenlt ‘opal oh ew asninde ae ig ara89 sia0s | [rapairment llowmce 6834, 337) (mass 7 $6268 x A Note: ‘+ An impsinmeat analysis of financial assets including deposits and other receivables is performed at cach reporting date by considering the pmbabiliy of defini of comparable companis with an etinated credit rte, The edit rate is adjusted to refer the cureet ‘conditions and forecasts of future coonomie conditions, a appropriate + Binge ear ended 3 Avg 203th ecxbls af oproinely RMB 6634002072: RMB37,00) we inpied c 22. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS ama 202 Rowpuco ___RMB'UO0 / Finacial rods 035360 su ‘As at31 August 2023 and 2022, financial asets fie value trough profit or loss represents investment in financial products of bank The financial products canbe redeemed one day after the application of the redemption request, Financial assets at fie value ‘through profit or loss are classed a curent a the management expects to realte these financial asset within twelve months after the reporting perio. ‘The above equity investments were classified as forward asets at fee value though profit of loss as they were held for trading or as the Group has not elcid to recognizing the fair value gain or has through other comprehensive income. wh 4 24,544 Mito 30,897 Baya cane) “ mt 2 oe Fy chaage 5 35,360 (23. CASH AND CASH EQUIVALENTS SU August 31 August ams 202 RMB'000 RMB'000 { ‘Cash and bank balances 756,413 389,265, & Cosh ad ash quivalents C1613 (399,65 At the end ofthe eportig period, cash and bank balances was denominated in RMB amounted to RMB7S6,413,000 (31 August 2022: RMB386,423,000). The RMB is not freely convertible into other currencies, however, under Mainiend China Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through banks authorised to conduct foreign exchange busines. (Cash at banks ears interest at lating rates based on deily bank deposit rates, The bank balances are deposited with creditworthy ‘banks with no recent history of def, 04, TRADE PAYABLES ‘An analysis of rade payables as atthe end ofthe reporting perio, presented base onthe invoice date, i as follows: a 20m repo | RMB'000 ‘Within one year Cor C138 ‘The trade payables are interest-ffee and are normally settled on 90-day terms 25. OTHER PAYABLES AND ACCRUALS 2023 2002 / _ RMB'000 RMB'000 Current portion: Payables for purchase of xed assets and construction 13591 14,006 Accrued staff benefits and payroll 8.993 726 Discretionary government subsidies receipt in advance on behalf of students 21,895 13932 Other payables 96.044 115,930 =p Rental fees payable 478 na Accrual 5085 1930 Wwidends payable = Interest payable = (145,986 185,680 ‘Non-current portion: A f ther payables* << 46518 037098 197,504 193,378 —— 2 26. “\.AtT September 27. © Gee FINANCIAL GUARANTEE CONTRACTS ams 202 [RMB‘000 RMB’000 : 4839 536 | guanine comic prosion| _ — ——~ | Amortisation of financial guarantee contracts provision « @816) << asi4) Loss allowance on financial guarantee contracts <0 car Av31 August 61293 4839 ‘Asal 31 August 2023, the aggregate amount of outstanding financial guarantees issued to banks in respect of banking loans granted to the Affected Entities that the Group could be required to pay ifthe guarantes were called upon in entirely amounted to ‘RMB668,080,000 31 August 2022: RMB 463,080,000), As at31 August 2023, all he Group's guaranteed banking facilities were lise bythe Affected Entities (31 August 2022: All the RMB1CO,000,000 banking facies were utlized) INTEREST-BEARING BANK AND OTHER BORROWINGS ams 2a Effective Effective Interest interest rate(%o)_Maturity _RMB'000-__ate(%)_Maturiy, _RMB'000 Current 8 Bank ono ~secured 406502023 319900 445550 20348 | Curent porion of longterm bank oun — secured sanane ans tsirm—aan7an ams | Other loans secured 673819 202342684 6268.19 ass < 897874 ous ; —| on-enrent Bank loans ~ secured 45070 2053 das 480-700 2083 387.700 Othe nas — secured 626819 200754854 629819200438 —— ae Cam984 (72864 —_ —— 2,117,208 126.687 6 . vd 28. INTEREST-BEARING BANK AND OTHER BORROWINGS - CONTINUED awn 2022 RMB'000 “_RMB'000 Analysed into Bank ons repayable: Within one year or on demand Cano 398,700" Inthe seond year 92020 139,700 Inthe hird w ith year, ncasve 476960 52500 Beyond five ys rassa0 155500 1.166200 796400 rhe oro wing repayable A A ‘Within one year or on demand “426,154 240,387 Inte second year 26178 35302 In the thio 5h yar, fcrve asra S428 ojL006 087 217208 146687 A “The expose ofthe Group's orowings ra fellow ams 2m RMB'000 /_RMB'000 Fined: borowings e928 1,019,687 Vavablesate borrowings 28,000 «07900 1426657 A Bf 6M ns? show be WEB? a 28. INTEREST-BEARING BANK AND OTHER BORROWINGS - CONTINUED ‘As a 31 August 2023, the Groups back orowings amounting to RMB 903 200,00 (31 August 2022: RMB796 400000) were secured by assets of or guratont by Mr. Yan Yode, Ms, Wang Xitoying and crn relied companies contlled by Mr. Yan ‘Yude. Out of the bank borrowings amounting 16 RMB 903920(),000 (31 August 2022: RMB796,400,000), a relative of Mr. Yan ‘Yad anda dretorofthe Company so provide grants on ben borowings mounting to RMBI46000000 31 August 2022: RMB100,000,000) and RMB159,009)ooofof (31 August 2022: RMB150,000,000), respectively ‘As at 31 August 202, the Group's other borrowings are related to loan borrowed from thin party financing companies under sales ‘and leaseback arrangements for certain property, plant and equipment with total amount of RMMB’951)008 000 (31 August 2022: 'RMB630287,000) The other borrowings have maturities from 1 to years and are guaranteed by Mr. Yan Yude, Ms. Wang ‘Xiaoying certain related companies controlled by Mt. Yan Yude, a relative of Mr. Yan Yade and long-term pledged deposits (note 19, Desies, bank borrowings amounting co RMB) {D)) G1 August 2022: RMB24S 500,000) oat of RMIBIE]!) (31 August 2022: 'RMB796,400,000) were also secured by mortgages over buildings situated in Chengdu, owned by a clatedpary, and bank bomowingssmounting 1 RMB [J (31 Avgest 2022: RMES7,000,000) ou of RMB {]. (31 Awgust 2022: RMB 00,000), ‘were secured bythe pledge OFRMB (31 August 2022: RMBSS(00,00) equity interests of Mr. Yan Yude and lative of Mr, Yan Ye. In respect of bank borrowings with carying amount of RMB)f]) as at 31 August 2023 (31 August 2022: RMB77,000,000), the Groep i eure comply with he following anil evens thoughout the contnice ofthe relevant on enor a ong ste oan i outstanding the tot debt and a ses rat of he leant ros subir shal at be more han 90% The Group has complod wi hse covenants dhouphout he eporing peso. 28. CONTRACT LIABILITIES Deut of conet iabiie ate lowe: ams ama Rewooo 2445000 Trion fos 555,606 70986 Bourg foe 0307 23709 Sehool canteen operation fees aga 8200 Conon weve fs for vee ioe ton formal education services fe and contin series es 14502 142590 755100 50495 —— —s cument Conse: C3626 Non-cumen* C6816 6869 753,100 am | 7” 4 /) 6s Why nt « cam whee meager “1 coa yor D (Contract liabilities inclnde short-term advances received from students in relation to the services not yet provided and the portion ‘of consultation service fees for oversea studies and educational management and consultancy sevice fe that will be provided after one year. The Grovp receives tition and boarding fees fom students in advance prior tothe beginning of each academic year. The Group rocsives school canteen operation fes from students in advance prior tothe beginning of each semester. Tuition fees, boarding fees and schoo! canten operations fees are recognised proportional over the relevant period of the spplicable program The students ae entitled to refund ofthe payment in elation to the proportionate service not yet provided, Significant changes in contrat liabilities are explained as follows: ans oz own) ___RMBoco Balance at Sepenber se0488 sie \, Bling insane 73,00 sos \ mtn bie nce a dso operas 2838) — Reveme copied tat was nla inthe conact bie alas a he eising othe er (tN) —/ < essa) aassto Balance 31 August 73,00 08 x A 29, + Teammate nv api ning fot ese ie ance de or se oe ov ary DEFERRED INCOME 23 ao RMB'000 ___RMB'000 ‘Atthebeinsng of year 1208! 1486 Received moons “ 6 Realist to proftorlos 026) 099 Ath eno ear 2 1308 cent C8 a Noo-caet = eis s 1308 The grants are related tothe subsidies received ftom the government forthe purpose of compensating forthe expenses arising from operating activities and improvement of teaching facilites on certain special projects. Upon completion of the operating sctivities tnd the related projects, te grants related tothe expense items would be recognised as other income directly in the consolidated statement of profit or loss and the grants related to assets would be released to the consolidted statement of profit o lass over the ‘expected usefil life ofthe relevant asset 68 30 31. SHARE CAPITAL - conrinueD 31. 32. ‘A summary of movements in the Company's share capital is as follows: Share capital RMB'000 [ACI Sepember 2022 088,761,000 26051 ‘ABI August 2022 3,088,761,000 26051 ‘ALI Sepemiber2022 3088,761,000 26051 ACSI August 2023 5,088,761,000 25051 RESERVES ‘The amounts ofthe Group's reserves and the movements therein forthe current snd prior periods are presented in the consolidated statement of changes in equity ofthe consolidated financial statements, @ ©) Capital reserve ‘The capital reserve ofthe Group represents the cepital contribution ffom its then sponsors ofthe subsidiaries and deemed scquiston ofa nox-contoling imterest held by persons other than the controlling shareholders. Statutory surplus reserve Pursuant tothe relevant laws in the PRC, the Company's subsidiaries inthe PRC shall make appropriation from after-tax profit to non-istributable reserve funds as determined by the boards of directors of the relevant PRC subsidiaries. These reserves include (the general reserve ofthe limited liability companies and (i) the development fund of schools, 1) In accondance withthe Company Law ofthe PRC, certain subsidiaries ofthe Group, which sre domestic enterprises, are required to allocate 10% of ther profit after tax, as determined in accordance with th relevant PRC accounting standards, (otheirrespective statutory surplus eserves unt the reserves reach 50% oftheir respective registered capital ‘Subject to certain restitions set out in the Company Law of the PRC, par of the statutory surplus reserve may be converted 10 share capital, provided that the remaining balance after the capitalisation is not less than 25% of the registered capital. 2) According to the relevant PRC laws and regulations, for private schools that require reasonable returns, they are ‘required to sppropriate to the development fund not less than 25% of their net income as determined in accordance ‘with generally accepted accounting principles in the PRC. For private schools that do not require reasonable returs, it is required to appropriate to the dovelopment fund not less than 25% of their enna increase of net assets as {etermined in accordance with generally accepted accountng principles in the PRC. The development fund is forthe construction or maintenance ofthe schools o procurement ar upgrade of educations equipment DECONSOLIDATION OF SUBSIDIARIES 68 \Wolongshan Campus of Chengdu Experimental Foreign Languages School (*Wulongshan High School”) whieh is @ high school and a consolidated aflistd entity ofthe Group. On 28 April 2028, Chengdu Experimental Foreign Languages Schoo of Xindu ‘Welongshan and Wulongshan High School have been consolidated into a new school providing primary, mide and high school ‘education services which is classified as school providing compulsory education. Therefore Wulongshan High School was aio endl nate contol gp? 4439 Interest bearing bank and other borrowings PAP 681 2,508,258 8 38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES ‘The Group's principal financial instruments comprise cash and cash equivalents and interest-bearing bank and other borrowings. ‘The main purpote of thet financial instruments isto ase finance forthe Group's operations. The Group has various other financial assets and liabilities suchas trade receivables, other receivables, deposits, trade payables, other payables snd accruals, which aise

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