Sasbadi Annual Report 2021

Looking back at FYE 31 August 2021, the resurgence of COVID-19 cases and reimplementation of total lockdowns with tight MCO restrictions had resulted in significant challenges to the Malaysian economy and our Group’s operations. With the sluggish performance of the retail sector and widespread closure of schools, our Group experienced severe disruptions to our robust recovery during the first six months of the current financial year, as illustrated by the financial performances of the Group’s third and fourth financial quarters. However, our Group remains cautiously optimistic of our prospects for FYE 31 August 2022, notably with the resumption of economic activities due to impressive vaccination progress and the gradual reopening of schools which began in early October 2021 that is anticipated to ramp up as the nation’s COVID-19 pandemic situation continues to improve over time. In addition, several competing education solutions providers in Malaysia had scaled-down their operations/exited the market due to the detrimental effects of the pandemic, serving as a prime opportunity for our Group to increase our market share and further cement our presence in the Malaysian educational landscape in FYE 31 August 2022 and beyond. However, with the recent announcement by the MOE regarding the delayed commencement of the new academic year in March 2022, our Group foresees an impact towards our seasonal first financial quarter performance for FYE 31 August 2022 as book orders will inevitably be delayed. With that said, our Group expects the orders to pick up over the second and third financial quarters for FYE 31 August 2022, particularly so because the MOE had at the same time announced an evaluation/intervention period during the months of January and February 2022 to gauge the readiness of students in advancing to the next academic year. Our Group believes that this evaluation period will create additional demand for our education solutions, notably our hybrid print publishing products that combine conventional print media and digital solutions, which have been well-received by teachers and students alike in the 2021 academic year. Future Prospects As we to transition to digital and online learning, Sasbadi Group is well poised to capitalise on this opportunity with our years of digital education experience and expertise. ” “ (continued) MANAGEMENT DISCUSSION AND ANALYSIS 20 SASBADI HOLDINGS BERHAD