Bright Scholar Education Holdings Limited ("Bright Scholar," the "Company," ) (NYSE: BEDU), a global premier education service company, announced its unaudited financial results for the third fiscal quarter ended May 31, 2021.
Source: Bright Scholar's Q3 FY2021 Unaudited Financial Report
According to the report, revenue for the third fiscal quarter was RMB1,053.8 million, a 42.5% increase from RMB739.4 million for the same period of the last fiscal year, primarily due to a stronger than expected recovery in the domestic businesses. The gross margin for Q3 FY2021 was 39.7%, slightly higher than 39.5% in Q3 FY2020.
Source: Bright Scholar's Q3 FY2021 Unaudited Financial Report
Domestic K-12 Schools (International schools, bilingual schools, and kindergartens) show the strongest recovery in Q3 with revenue and enrollment growth back to the pre-pandemic level. The revenue for Domestic K-12 schools in Q3 FY2021 was RMB750.0million(accounting for 71.2% of total revenues), compared with RMB434.8 million in Q3 FY2020. The average monthly student enrollment was 57,188 in Q3 FY2021, increasing by 16.9% from 48,935 for Q3 FY2020. The gross margin of Domestic K-12 Schools reached 47.8% from 43.1% for Q3 2020.
In Q3 FY2020, revenue for Overseas Schools(CATS Global Schools) was RMB142.3 million(accounting for 13.4% of total revenue), a year-over-year decrease of 32.4%. The gross margin for Overseas Schools was 6.3% this quarter, compared to 29.9% in Q3 FY2020.
Education technology(online career counseling, online Academic Olympiad training, and online international school) amounted to RMB31.3 million for this quarter, accounting for an increase of 47.1% year-on-year.
Complementary education(language training, overseas study counseling, camps and study tours, and others) remains a significant growth driver, and it continues its strong recovery traction with expanding opportunities. Revenue of complementary education in Q3 FY2021 was RMB130.2 million(accounting for 12.4% of total revenue), up 42.5% year-over-year.
Net income for Q3 FY2021 was RMB163.9 million, representing a year-over-year increase of 141.0% from RMB68.0 million, contributed by the engines of growth and employment of cost discipline across all of their business, indicated by Jerry He, Executive Vice Chairman of Bright Scholar.
As for the cash and cash equivalents and restricted cash, it was RMB1,668.1 million as of May 31, 2021, compared to RMB2,098.4 million as of February 28, 2021.
As of May 31, 2021, the Company has 107 schools and 28 language training institutions in China, UK, and the USA.
Source: BEDU F3Q21 Earnings Presentation
For Q4 FY2021, Bright Scholar currently expects net revenues between RMB3.58 billion to RMB3.69 million, representing year-over-year growth of 7% to 10%, and its average student enrolment in their domestic and overseas schools to be between approximately 56,000 and 57,000, representing a year-over-year increase of 8% to 10%.
On July 30, 2021, the Company responded to the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education. "Bright Scholar has very limited exposure to after-school tutoring from grade 1 through grade 9, and we currently do not expect that the abovementioned Opinion will have a material impact on our business."