ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 JULY 2021

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BExcellent Group Holdings Limited

精 英 匯 集 團 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1775)

ANNOUNCEMENT OF ANNUAL RESULTS

FOR THE YEAR ENDED 31 JULY 2021

FINANCIAL HIGHLIGHTS

Summary of the results of the Group for the financial year ended 31 July 2021 compared to that of the year ended 31 July 2020 is as follows:

• The Group's revenue decreased by approximately 38.2% from approximately HK$287.0 million to approximately HK$177.4 million.
• Total number of session enrollments of private supplementary secondary school education services decreased by approximately 44.4% from approximately 405,000 to approximately 225,000.
• The average number of sessions enrolled per student of private supplementary secondary school education services decreased by approximately 15.5% from approximately 11.6 to approximately 9.8.
• Loss attributable to owners of the Company increased by approximately 40.2% from approximately HK$19.2 million to approximately HK$27.0 million.
• The Board does not recommend the payment of a final dividend for the year ended 31 July 2021.

ANNUAL RESULTS

The board (the "Board") of directors (the "Directors") of BExcellent Group Holdings Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively the "Group") for the year ended 31 July 2021, which have been reviewed by the Company's Audit Committee. Unless specified otherwise, (i) capitalised terms used herein shall have the same meanings as used in the immediately preceding annual report of the Company; and (ii) where appropriate, numerical figures or percentages presented herein shall be approximate figures and percentages (as the case may be).

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 July 2021

		2021	2020
	Note	HK$'000		HK$'000
Revenue	3	177,398	287,036
Other income	4	19,579	13,753
Other losses - net	4	(325)	(4,521)
Staff costs	5	(81,008)	(97,939)
Tutor service fees		(48,404)	(79,575)
Short-term lease, variable lease and low-value lease payments		(6,709)	(11,052)
Advertising and promotion expenses		(4,965)	(8,244)
Printing and other operating expenses		(44,520)	(69,943)
Depreciation and amortisation expenses		(37,261)	(47,489)
Net impairment losses on financial assets		(1,073)	(1,400)
Operating loss		(27,288)	(19,374)
Finance costs	6	(1,376)	(2,599)
Share of losses of an associate		(126)	(196)
Loss before taxation	7	(28,790)	(22,169)
Taxation	8	1,235	2,378
Loss for the year		(27,555)	(19,791)
Other comprehensive loss
Item that will not be reclassified to profit or loss
Change in the fair value of equity investment at fair value		(215)		-
through other comprehensive income
Other comprehensive loss for the year		(215)		-
Total comprehensive loss for the year		(27,770)	(19,791)
Loss attributable to
	(26,963)
- Owners of the Company		(19,230)
- Non-controlling interests		(592)	(561)
		(27,555)	(19,791)
Total comprehensive loss for the year attributable to
	(27,178)
- Owners of the Company		(19,230)
- Non-controlling interests		(592)	(561)
		(27,770)	(19,791)
Loss per share for loss attributable to the owners
of the Company (expressed in HK cent per share):		(5.39)
Basic loss per share	9(a)	(3.85)
Diluted loss per share	9(b)	(5.39)	(3.85)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 July 2021

		2021	2020
	Note	HK$'000		HK$'000
Assets
Non-current assets
Property, plant and equipment		16,759	19,231
Right-of-use assets	11	29,444	42,998
Investment property	12	19,400	19,300
Intangible assets		4,659	4,403
Interest in an associate		-	704
Financial assets at fair value through other comprehensive income		285		-
Deferred income tax assets		6,668	5,433
Deposits and prepayments	14	2,463	12,573
		79,678	104,642
Current assets
Accounts receivables	13	3,398	1,604
Deposits, prepayments and other receivables	14	18,033	20,450
Income tax recoverable		1,064	1,079
Cash and cash equivalents		81,148	121,303
		103,643	144,436
Total assets		183,321	249,078
Equity
Share capital	16	120,956	120,956
Other reserves		16,676	15,520
(Accumulated losses)/retained earnings		(10,737)	21,226
Equity attributable to owners of the Company		126,895	157,702
Non-controlling interests		(901)	(1,853)
Total equity		125,994	155,849

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		2021	2020
	Note	HK$'000		HK$'000
Liabilities
Current liabilities
Other payables	15	16,371	20,838
Contract liabilities		15,352	14,676
Current income tax payable		345	811
Borrowings		7,585	8,085
Lease liabilities	11	11,264	31,620
		50,917	76,030
Non-current liabilities
Other non-current liabilities	15	579	2,406
Deferred income tax liabilities		10	13
Lease liabilities	11	5,821	14,780
		6,410	17,199
Total liabilities		57,327	93,229
Total equity and liabilities		183,321	249,078

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

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Notes to the Consolidated Financial Statements

1. GENERAL INFORMATION
   BExcellent Group Holdings Limited (the "Company") was incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Law, Cap 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands and listed (the "Listing") on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 13 July 2018. The address of the Company's registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1- 1111, Cayman Islands.
   The Company is an investment holding company. The Company and its subsidiaries (together "the Group") are principally engaged in the provision of private supplementary secondary school education services, the operation of private secondary day schools and offer ancillary education services and products in Hong Kong. The ultimate holding company is Beacon Enterprise Limited, a company incorporated in the British Virgin Islands with limited liability.
   These consolidated financial statements are presented in thousands of Hong Kong dollars ("HK$'000"), unless otherwise stated.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
   2.1 Basis of preparation
   These consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), and disclosure requirements of the Hong Kong Companies Ordinance (Cap. 622). These consolidated financial statements also include applicable disclosure required by the Rules Governing the Listing of Securities on the Stock Exchange.
   The impact of the adoption of the following amendments to existing standard is disclosed in note 2.2.
3. • Amendments to HKFRS 16 "Leases", "COVID-19 - Related Rent Concession", which is mandatory for the first time for the financial year beginning 1 August 2020
   • Amendments to HKFRS 16 "Leases", "COVID-19 - Related Rent Concession beyond 30 June 2021", which is mandatory for the first time for the financial year beginning 1 August 2021, where early adoption is permitted

The following new amendments and amended framework are mandatory for the first time for the financial year beginning 1 August 2020, but have no material effect on the Group's reported results and financial position for the current and prior accounting periods.

• Amendments to HKAS 1 (Revised) "Presentation of Financial Statements"

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