Applied Learning Products (“ALP”) and STEM Education Services The Group’s ALP and STEM segment recorded a small increase in revenue from RM2.195 million for the FYE 31 August 2021 to RM2.313 million for the FYE August 2022 (equivalent to 5.38%), mainly attributed to the signing of a Letter of Acceptance with the Penang Regional Development Authority (“PERDA”) to supply LEGO robotic sets to schools under the Program Rural Outreach STEM with a contract value of RM0.497 million. Despite that, the revenue has not fully recovered to the pre-Covid period as physical robotics competitions are still not permitted during the year under review. We are hopeful for physical robotics competitions to resume during FYE 31 August 2023. Since 2005, the Group has been the MoE’s Strategic Partner for robotics programme catering to both the primary and secondary schools. Malaysian contingent consistently made outstanding performances in the prestigious World Robot Olympiad (“WRO”), having emerged as the Overall Champion 10 times in the last 17 years. For WRO 2022, held in Dortmund, Germany from 17-19 November 2022 and involving 375 international teams from more than 73 countries, the Malaysian contingent managed to clinch 2 silver medals, 1 bronze medal, and 2 Excellence awards for their excellent performance. Similar to the academic print publishing segment, the non-academic related segment had performed positively in the financial year 31 August 2022. As Covid-19 restriction were lifted, our sales channels for non-academic publications such as book fairs, school exhibitions, and traditional bookstores, which were previously subjected to forced closures, could resume per usual resulting in increased retail activity and higher sales of our product offerings. Digital/Online Solutions and our Direct Selling Business The Group’s digital and network marketing segment’s revenue of RM3.441 million for the current financial year is consistent with the revenue of RM3.493 million for FYE 31 August 2021, representing a minor decrease of 1.49%. Despite the slight decrease in performance, our Group remains hopeful of our digital education segment. With over a decade of experience in developing quality digital education technologies, our Group is poised to capitalise on the rising digitalisation of the education landscape in tandem with the aspirations to digitalise the education sector as stated in the Malaysia Digital Economy Blueprint and Twelfth Malaysian Plan (“12MP”) 2021-2025. As a testament to our capabilities, the Group had clinched two (2) Letters of Acceptance from the MoE subsequent to the financial year end to supply and deliver market-ready digital solutions in line with the Common European Framework of Reference for Languages (“CEFR”) Year 1 and Year 3 for the school session usage from 2023 with a total contract value of RM2.238 million. The revenue from these contracts will also be reflected in the financial year ending 31 August 2023. (continued) MANAGEMENT DISCUSSION AND ANALYSIS 17 ANNUAL REPORT 2022
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