Sasbadi Annual Report 2021

year compared to RM57.279 million in the preceding financial year, representing a marginal decrease of RM0.065 million (equivalent to 0.11%). The Digital Network Marketing segment recorded a revenue of RM3.493 million for the current financial year as compared to RM2.833 million for the preceding financial year, representing an increase of RM0.660 million (equivalent to 23.30%). Lastly, our ALP and STEM segment recorded a revenue of RM2.195 million for the current financial year as compared to RM2.702 million for the preceding financial year, representing a decrease of RM0.507 million (equivalent to 18.76%). Despite an increase in overall revenue, the Group recorded a higher loss before tax (“LBT”) of RM10.456 million for the current financial year vis-à-vis a LBT of RM9.304 million for the preceding financial year. The higher loss of RM1.152 million was mainly attributed to the higher provision of inventories write down of RM10.997 million recognised during the current financial year as compared to RM5.293 million in the preceding financial year. However, this was partly set-off by the reversal of impairment loss on trade receivables by RM0.913 million as compared to impairment charges of RM1.544 million in the preceding financial year and lower operation expenses incurred attributed to our various cost optimisation measures. A detailed analysis of the operating segments is provided below. The equity attributable to owners of the Company decreased from RM146.042 million as at 31 August 2020 to RM137.888 million as at 31 August 2021. The Group recorded a loss per share (“LPS”) of 2.20 sen for FYE 31 August 2021 as compared to a LPS of 2.14 sen for FYE 31 August 2020 as a result of the higher loss incurred during the financial year. The Group’s debt-to-equity ratio was 0.13 times as at 31 August 2021 vis-à-vis 0.26 times as at 31 August 2020. The decrease in the Group’s debt-to-equity ratio was mainly due to lower loan and borrowings which decreased from RM37.443 million to RM17.491 million as at 31 August 2020 and 31 August 2021 respectively. The decrease in loan and borrowings were mainly attributed to the Group’s cash management measures where we disposed our non-core assets to increase liquidity and reduce finance cost. The decrease in loan and bank borrowings also resulted in the improvement of the current ratio from 3.01 times as at 31 August 2020 to 3.42 times as at 31 August 2021. For the FYE 31 August 2021, the Group did not incur any major capital expenditure. Dividend Policy The Board of Directors do not recommend the payment of any final dividend for the FYE 31 August 2021. Overview of Operations Sasbadi Holdings Berhad (“Sasbadi Holdings” or “the Company”) is an investment holding company while the Group (i.e. Sasbadi Holdings and its subsidiaries) is an education solutions provider. Further details on the Group’s subsidiaries are disclosed in Note 8 to the Financial Statements section in this Annual Report. The Group’s history began with the incorporation of Sasbadi Sdn Bhd (“SSB”) in 1985, which commenced its operations as a publisher of printed educational materials within the same year. In order to meet the teaching and learning needs of the 21st century, the Group evolved from being mainly an educational print publisher to a provider of diverse education solutions which include digital technology that enables effective and efficient teaching and learning, applied learning tools that facilitate Science, Technology, Engineering, and Mathematics (“STEM”) education, education services, English language learning cum assessment solutions and a direct selling business, all of which complement our print publishing business. On 23 July 2014, the Company was successfully listed on the Main Market of Bursa Malaysia Securities Berhad. The Group’s premises include our Head Office in Kota Damansara, Petaling Jaya, Selangor; an office in Sungai Buloh, Selangor where Sanjung Unggul Sdn Bhd (“SUSB”) and its subsidiaries (“SUSB Group”) operate; an office in Sri Petaling, Kuala Lumpur where United Publishing House (M) Sdn Bhd (“UPH”) and its subsidiaries (“UPH Group”) operate; and an office in Cova Square, Kota Damansara, Petaling Jaya, Selangor where MindTech Education Sdn Bhd (“MindTech Education”) operates. The Group’s operations are divided into the following segments: (i) Print publishing, which is further divided into the following: (a) Academic print publishing focusing on both national and national-type (Chinese) schools and also early childhood education; and (b) Non-academic print publishing which includes comic books, novels, dictionaries and other general titles. (ii) Digital and network marketing; and (iii) Applied learning products (“ALP”) and STEM education services Financial Review Similar to our preceding financial year, the financial year ended (“FYE”) 31 August 2021 continued to be a challenging year for the Group, largely due to the resurgence of COVID-19 cases and the reimplementation of the Movement Control Order (“MCO”) which adversely impacted the Group’s overall operations. Despite this, the Group recorded a revenue of RM62.902 million for the current financial year as compared to RM62.814 million for the preceding financial year, representing a marginal increase of RM0.088 million (equivalent to 0.14%). Across the Group’s segments, the Print Publishing segment recorded a revenue of RM57.214 million in the current financial (continued) MANAGEMENT DISCUSSION AND ANALYSIS 15 ANNUAL REPORT 2021