Sasbadi Annual Report 2021

Review of Operating Segments Print Publishing Business The Group’s print publishing segment’s revenue decreased from RM57.279 million for the preceding financial year to RM57.214 million for the current financial year, representing a marginal decrease of RM0.065 million (equivalent to 0.11%). The Group’s academic print publishing segment got off to a promising start in the first half of FYE 31 August 2021. With the delay of the 2021 new academic year to 20 January 2021, orders for our academic products were delayed accordingly from the fourth financial quarters of FYE 31 August 2020 to the first and second financial quarters of FYE 31 August 2021. Further enhancing the demand during the same period was the rescheduling of Sijil Pelajaran Malaysia (“SPM”) and Sijil Tinggi Persekolahan Malaysia (“STPM”) 2020 examinations to the months of February and March 2021. However, our nation soon fell into another nationwide lockdown in June 2021, prompting schools to close once more in addition to a slowdown of retail and economic activities. The Ministry of Education (“MOE”) also announced the cancellation and permanent abolishment of the public examination for Year 6 students, i.e. Ujian Penilaian Sekolah Rendah (“UPSR”) from the year 2021 and onwards, and the cancellation of the public examination for Form 3 students, i.e. Pentaksiran Tingkatan Tiga (“PT3”) for the year 2021. Meanwhile, the Form 5 and Form 6 public examinations i.e. SPM and STPM respectively are postponed to 2022. These changes have had a negative impact on the Group as they reduced the demand for our academic products. In response to this, much emphasis was placed in providing quality educational products for SPM and STPM candidates whose study progresses have inadvertently been impacted by school closures. These publications which complied with the MOE’s latest SPM examination formats were able to assist them in home-based learning and to complete the academic syllabus more efficiently and effectively. In addition, we hosted a series of webinars named BONGKAR SPM which were free of charge and aimed to help SPM 2021 candidates be better prepared for their examinations. On the textbook publishing front, during the financial year, the Group managed to secure four (4) new textbook contracts from the government which were valued at an estimated total of RM2.494 million. The value of textbook contracts secured by the Group in the current year has decreased by RM3.754 million (equivalent to 60.00%) as compared to the previous year’s total contract value of RM6.248 million due to smaller order quantity and fewer contracts won. Subsequent to the financial year end, the Group secured an additional new textbook contract valued at an estimated total of RM0.725 million. The revenue for these textbook contracts will be reflected in the financial year ending 31 August 2022. The revenue contribution from the new textbook contracts for the FYE 31 August 2021 has increased by RM1.738 million from RM7.341 million for the preceding financial year to RM9.079 million for the current financial year (equivalent to 23.68%). The increase was mainly attributable to a spillover AAAAAA (continued) MANAGEMENT DISCUSSION AND ANALYSIS 16 SASBADI HOLDINGS BERHAD