Sasbadi Annual Report 2017

ANNUAL REPORT 2017 11 Non-Academic Print Publishing Similar to academic print publishing for national schools, the Group’s non-academic print publishing segment, i.e. via OBSB, recorded a drop in revenue from RM2.01 million for FYE 31 August 2016 to RM1.24 million for FYE 31 August 2017, mainly due to the weak retail market conditions. Apart from the revenue recorded by OBSB, the SUSB Group and the UPH Group also contribute to the Group’s non-academic print publishing segment, albeit the quantum of their contributions is not being segregated for our management reporting purposes. The Group has continued with the development of technology enhanced products for this segment - the recent exciting example being the planned Chuck Chicken range of books. In October 2017, we have been licensed by Animasia Studio Sdn Bhd (“Animasia”) for a period of three (3) years from 6 October 2017 to 5 October 2020 to publish, sell and sub-license printed materials based on Animasia’s animated television series, Chuck Chicken, in Malaysia and the rest of the world. The products, which will utilise the Group’s in-house AR or mobile application technology, will include colouring books, comic books, hardcover trade books, collectible editions, and activity books. The agreement with Animasia further exemplifies the Group’s push for more collaboration initiatives to spur growth. Digital/Online and Technology-enabled Solutions and Network Marketing Business The Group has continued our efforts in the development of our digital/online and technology-enabled solutions segment to support Shift 7 of the Malaysia Education Blueprint 2013-2025, i.e. to leverage information and communications technology (“ICT”) to scale up quality learning across Malaysia. Apart from supporting our academic and non-academic print publishing segments, our digital/online and technology-enabled solutions segment mainly supports our network marketing business. MindTech Education has continued promoting and selling our interactive digital learning platform, i-LEARN Ace, via our network marketing/direct selling distribution network. The distributor network has grown across urban and rural areas in Malaysia, with the number of members in our network growing from approximately 1,300 members as at 31 August 2016 to approximately 8,100 members as at 31 August 2017. The Group has been and is constantly exploring new products suitable to be sold through this distribution channel. The combined revenue of MindTech Education and SOSB grew from RM2.08 million for FYE 31 August 2016 to RM6.09 million for FYE 31 August 2017. Applied Learning Products and STEM Education Services The SLS Group recorded a drop in revenue from RM4.89 million for FYE 31 August 2016 to RM3.53 million for FYE 31 August 2017. However, the Group via SSB has, in October 2016, won a contract from the MoE to supply Lego Education robotics sets to primary and secondary schools in Malaysia valued at RM3.85 million, and the supply was fully fulfilled by the Group in December 2016. Taking this contract into consideration, our applied learning segment’s revenue actually increased to RM7.38 million for FYE 31 August 2017. The Group’s flagship applied learning programme with the MoE, i.e. the National Robotics Competition (“NRC”), has continued to win accolades year after year. The Malaysian contingent has performed well at the prestigious World Robot Olympiad (“WRO”) 2017 held in Costa Rica in November 2017 by winning 1 gold medal and 2 silver medals, thus emerging as the overall runner-up. WRO 2017 was well attended by approximately 400 teams coming from 53 countries. This programme has consistently generated interest among students, parents, and teachers in the STEM field. Additionally, the Group together with the University of Malaya has jointly developed a robotics skills certification programme to assess students’ STEM related skills such as technical, creativity, innovation, and higher order thinking skills (“HOTS”). A pilot of the programme was conducted in September 2017 among students from the NRC finals. This certification programme will enhance the long term attractiveness of our applied learning centre and solutions (spearheaded by DM and DE which were acquired by us in October 2016) to students and their parents. MANAGEMENT DISCUSSION AND ANALYSIS