Acquires approximately 51.0% equity of a local adult education service company

HONG KONG SAR - Media OutReach - 25 October 2022 - BExcellent Group Holdings Limited ("BExcellent Group" or the "Company", together with its subsidiaries, the "Group"; stock code: 1775.HK) announced its annual results for the year ended 31 July 2022 ("Financial Year"). During the Financial Year under review, the Group recorded revenue of HK$141,829,000. Despite the fluctuant situation of COVID-19 pandemic in the year, the Group was able to reduce the loss before taxation by 15.5% to HK$24,325,000 and the cash and cash equivalents of the Group increased to HK$103,900,000. BUSINESS REVIEWPrivate supplementary secondary school education services The Group provides private supplementary secondary school education services for students from Secondary 1 to Secondary 6 under "Beacon College" brand. The revenue derived from private supplementary secondary school education services was HK$113,942,000 for the year ended 31 July 2022 and the number of session enrollment was 179,000. Due to the worsening of the fifth wave of COVID-19 pandemic in Hong Kong in late 2021 and early 2022, the number of new confirmed cases in Hong Kong reached a historic high and the Hong Kong government implemented disease prevention measure such as suspending face-to-face classes, which affected the overall number of session enrollments during the year. Private secondary day school services As at 31 July 2022, the Group operated two private secondary day schools located respectively in Yuen Long and Mong Kok under "Beacon Day School" brand. Due to the increase of the number of private secondary day school unique student enrollments, the revenue derived from private secondary day school services was increased by 9.4% from HK$8,026,000 for the year ended 31 July 2021 to HK$8,784,000. Ancillary education services and products The Group offers various ancillary education services and products such as (i) IELTS and foreign language courses under "Beacon BExcellent" brand; (ii) mock examination services; (iii) education services to schools, tutorial and consultation services, interview preparation, language and supplementary primary school education, under our "Diverse Learning Club", "Beacon Childhood", "BeConfident", "Glocal Education" and "Mathgic" brands, etc. During the Financial Year under review, the total revenue derived from ancillary education services and products was HK$19,103,000 and the total number of session enrollment was 12,000. The ancillary education services and products are detailed as follows: (i) Beacon BExcellent is the largest revenue contributor of our ancillary education services and products during the year. The demand for overseas study, migration, continuing education and training provided strong momentum for the demand of IELTS courses. The revenue of Beacon BExcellent was HK$5,468,000 for the year ended 31 July 2022. (ii) For the Financial Year under review, the revenue from mock examinations services was HK$3,942,000. (iii) Revenue from childhood education and school services was HK$3,174,000 for the year ended 31 July 2022. The Group was in the process of restructuring the childhood education services and streamlining the operation of our childhood education teaching centres. (iv) The organic growth on revenue arising from our HKDSE school services to various secondary schools, our online course platform namely CourseZ as well as our education services offered in mainland China resulted in a significant increase in the revenue for other services and products by 27.1% to HK$5,666,000. OUTLOOK AND FUTURE DEVELOPMENTS Looking ahead, The Group believes that the previous investment in the information technology for online learning has equipped the Group to surf in the wave of learning behavior change, which have created a broader market for our private supplementary secondary school education services. To maintain the leading position in the Hong Kong private education market, the Group will continue (i) strengthening the teaching team by recruiting and retaining high calibers in the teaching force; (ii) optimizing our network of teaching centres for cost efficiency and even better classroom ultilisation; and (iii) further expanding the provision of education services to primary and secondary schools. During the second half of the Financial Year under review, the Group has been providing teaching services to a HKDSE programme in an international school in Shenzhen, which earmarked a successful model of the extension of the Group's education expertise from Hong Kong to the Greater Bay Area of mainland China. With this track record, the Group is optimistic to expand the development of the full spectrum of education services in mainland China when sound opportunity arises, and believe the strong position in the Hong Kong HKDSE education market will enable the Group to benefit from the prominent international education market...