Document And Entity Information
Document And Entity Information | 12 Months Ended |
Aug. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | Bright Scholar Education Holdings Limited |
Document Type | 20-F |
Current Fiscal Year End Date | --08-31 |
Amendment Flag | false |
Entity Central Index Key | 0001696355 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Aug. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38077 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | No. 1, Country Garden Road |
Entity Address, Address Line Two | Beijiao Town |
Entity Address, Address Line Three | Shunde District, Foshan |
Entity Address, City or Town | Foshan |
Entity Address, Postal Zip Code | 528300 |
Entity Address, Country | CN |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 1113 |
Auditor Name | Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Auditor Location | Shenzhen, China |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Suites 6-7 The Turvill Building Old Swiss |
Entity Address, Address Line Two | 149 Cherry Hinton Road |
Entity Address, City or Town | Cambridge |
Entity Address, Postal Zip Code | CB1 7BX |
Entity Address, Country | CN |
Contact Personnel Name | Mr. Ruolei Niu |
City Area Code | +44 |
Local Phone Number | 12-2334-1303 |
Contact Personnel Email Address | robertniu@brightscholar.com |
American depositary shares, each representing four Class A ordinary share, par value US$0.00001 per share | |
Document Information Line Items | |
Trading Symbol | BEDU |
Title of 12(b) Security | American depositary shares, each representing four Class A ordinary share, par value US$0.00001 per share |
Security Exchange Name | NYSE |
Class A ordinary shares, par value US$0.00001 per share | |
Document Information Line Items | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00001 per share |
Not for trading, but only in connection with the listing on the New York Stock Exchange of American depositary shares | |
Document Information Line Items | |
Title of 12(b) Security | Not for trading, but only in connection with the listing on the New York Stock Exchange of American depositary shares |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 31,314,817 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 87,590,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) |
Current assets | |||
Cash and cash equivalents | ¥ 537,325 | $ 74,030 | ¥ 664,769 |
Restricted cash | 28,261 | 3,894 | 191,365 |
Accounts receivable, net of allowance of RMB 13,793 and RMB 13,331 as of August 31, 2022 and 2023, respectively | 19,209 | 2,647 | 18,084 |
Other receivables, deposits and other assets, net of allowance of RMB 1,677 and RMB 957 as of August 31, 2022 and 2023, respectively | 148,679 | 20,483 | 112,762 |
Inventories | 5,480 | 755 | 6,869 |
Assets held for sale | 11,258 | ||
Total current assets | 927,399 | 127,772 | 1,201,733 |
Restricted cash – non current | 1,650 | 227 | 1,650 |
Property and equipment, net | 414,225 | 57,070 | 393,277 |
Intangible assets, net | 343,077 | 47,268 | 322,896 |
Goodwill, net | 1,328,872 | 183,086 | 1,433,916 |
Long-term investments, net | 36,070 | 4,970 | 40,486 |
Prepayments for construction contracts | 1,711 | 236 | 4,894 |
Deferred tax assets, net | 1,810 | 249 | 85,103 |
Other non-current assets, net of allowance of RMB 237 and RMB 286 as of August 31, 2022 and 2023, respectively | 15,249 | 2,101 | 15,343 |
Operating lease right-of-use assets – non current | 1,549,447 | 213,475 | 1,453,833 |
Total non-current assets | 3,692,111 | 508,682 | 3,751,398 |
TOTAL ASSETS | 4,619,510 | 636,454 | 4,953,131 |
Current liabilities | |||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 6,154 and RMB 3,638 as of August 31, 2022 and 2023, respectively) | 105,193 | 14,493 | 100,229 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited RMB 27,790 and RMB 74,317 as of August 31, 2022 and 2023, respectively) | 279,690 | 38,535 | 262,490 |
Short-term loans (including short-term loans of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB nil and RMB nil as of August 31, 2022 and 2023, respectively) | 149,239 | ||
Income tax payable (including income tax payable of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 19,983 and RMB 23,422 as of August 31, 2022 and 2023, respectively) | 99,367 | 13,690 | 85,856 |
Contract liabilities – current (including contract liabilities of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 107,494 and RMB 111,592 as of August 31, 2022 and 2023, respectively) | 541,683 | 74,630 | 516,731 |
Refund liabilities – current (including refund liabilities of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 9,458 and RMB 7,606 as of August 31, 2022 and 2023, respectively) | 17,572 | 2,421 | 20,517 |
Operating lease liabilities – current (including operating lease liabilities - current of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 20,779 and RMB 22,365 as of August 31, 2022 and 2023, respectively) | 125,447 | 17,283 | 104,515 |
Total current liabilities | 1,480,403 | 203,962 | 1,582,609 |
Non-current contract liabilities (including non-current portion of contract liabilities of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 1,108 and RMB 1,147 as of August 31, 2022 and 2023, respectively) | 2,116 | 292 | 2,203 |
Deferred tax liabilities, net (including deferred tax liabilities, net of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 9,551 and RMB 7,375 as of August 31, 2022 and 2023, respectively) | 42,093 | 5,799 | 21,707 |
Long-term loan (including long-term loan of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited RMB nil and RMB nil as of August 31, 2022 and 2023, respectively) | 633 | ||
Other non-current liabilities due to related parties (including other non-current liabilities due to related parties of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 11,197 and RMB nil as of August 31, 2022 and 2023, respectively) | 11,197 | ||
Operating lease liabilities – non current (including operating lease liabilities – non current of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 72,464 and RMB 64,013 as of August 31, 2022 and 2023, respectively) | 1,523,242 | 209,865 | 1,439,239 |
Total non-current liabilities | 1,567,451 | 215,956 | 1,474,979 |
TOTAL LIABILITIES | 3,047,854 | 419,918 | 3,057,588 |
Commitments and Contingencies | |||
EQUITY | |||
Share capital (US$0.00001 par value; 118,669,795 shares issued and outstanding as of August 31, 2022 and 2023, respectively) | 8 | 1 | 8 |
Additional paid-in capital | 1,697,370 | 233,856 | 1,693,358 |
Statutory reserves | 20,155 | 2,777 | 14,872 |
Accumulated other comprehensive income | 172,230 | 23,729 | 34,401 |
Accumulated deficit | (473,154) | (65,189) | (72,737) |
Shareholders’ equity | 1,416,609 | 195,174 | 1,669,902 |
Non-controlling interests | 155,047 | 21,362 | 225,641 |
TOTAL EQUITY | 1,571,656 | 216,536 | 1,895,543 |
TOTAL LIABILITIES AND EQUITY | 4,619,510 | 636,454 | 4,953,131 |
Related Parties | |||
Current assets | |||
Amounts due from related parties, net of allowance of RMB 572 and RMB 13,399 as of August 31, 2022 and 2023, respectively | 188,445 | 25,963 | 196,626 |
Current liabilities | |||
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to Bright Scholar Education Holdings Limited of RMB 294,164 and RMB 255,453 as of August 31, 2022 and 2023, respectively) | ¥ 311,451 | $ 42,910 | ¥ 343,032 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) ¥ in Thousands | Aug. 31, 2023 CNY (¥) shares | Aug. 31, 2022 CNY (¥) shares |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance | ¥ 13,331 | ¥ 13,793 |
Net of allowance, amounts due from related parties | 13,399 | 572 |
Other receivables, deposits and other assets, net of allowance | 957 | 1,677 |
Net of allowance, other non-current assets | 286 | 237 |
Accounts payable consolidated VIEs without recourse | 3,638 | 6,154 |
Amounts due to related parties consolidated VIEs without recourse | 255,453 | 294,164 |
Accrued expenses and other current liabilities consolidated VIEs without recourse | 74,317 | 27,790 |
Bond payable consolidated VIEs without recourse | ||
Income tax payable consolidated VIEs without recourse | 23,422 | 19,983 |
Contract liabilities consolidated VIEs without recourse | 111,592 | 107,494 |
Refund liabilities consolidated VIEs without recourse | 7,606 | 9,458 |
Operating lease liabilities consolidated VIEs without recourse | 22,365 | 20,779 |
Non-current contract liabilities consolidated VIEs without recourse | 1,147 | 1,108 |
Deferred tax liabilities consolidated VIEs without recourse | 7,375 | 9,551 |
Long-term loan consolidated VIEs without recourse | ||
Other non-current liabilities consolidated VIEs without recourse | 11,197 | |
Operating lease liabilities consolidated VIEs without recourse | ¥ 64,013 | ¥ 72,464 |
Share capital shares issued (in Shares) | shares | 118,669,795 | 118,669,795 |
Share capital shares outstanding (in Shares) | shares | 118,669,795 | 118,669,795 |
Consolidated Statements of Oper
Consolidated Statements of Operations ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2023 CNY (¥) ¥ / shares shares | Aug. 31, 2023 USD ($) $ / shares shares | Aug. 31, 2022 CNY (¥) ¥ / shares shares | Aug. 31, 2021 CNY (¥) ¥ / shares shares | |||
Income Statement [Abstract] | ||||||
Revenue | ¥ 2,123,751 | $ 292,600 | ¥ 1,713,965 | ¥ 1,401,780 | ||
Cost of revenue | (1,526,419) | (210,303) | (1,237,306) | (1,180,263) | ||
Gross profit | 597,332 | 82,297 | 476,659 | 221,517 | ||
Selling, general and administrative expenses | (617,184) | (85,033) | (539,893) | (535,878) | ||
Other operating income | 56,043 | 7,722 | 5,339 | 24,969 | ||
Impairment loss on property and equipment | (12,891) | (1,776) | (6,586) | |||
Impairment loss on operating lease right-of-use assets | (8,861) | (15,575) | ||||
Impairment loss on intangible assets | (2,052) | (283) | (113,385) | |||
Impairment loss on goodwill | (207,830) | [1] | (28,633) | (419,805) | [2] | (84,730) |
Operating loss | (186,582) | (25,706) | (606,532) | (389,697) | ||
Interest expense, net | (7,367) | (1,015) | (127,840) | (169,693) | ||
Investment income | 60 | 8 | 135,309 | 129,575 | ||
Other expenses | (6,677) | (920) | (5,808) | (10,137) | ||
Loss before income taxes and share of equity in loss of unconsolidated affiliates | (200,566) | (27,633) | (604,871) | (439,952) | ||
Income tax expense | (185,918) | (25,615) | (58,919) | (94,176) | ||
Share of equity in loss of unconsolidated affiliates | (339) | (47) | (39,747) | (1,018) | ||
Net loss from continuing operations | (386,823) | (53,295) | (703,537) | (535,146) | ||
Income from discontinued operations, net of tax | 369,343 | |||||
Net loss | (386,823) | (53,295) | (703,537) | (165,803) | ||
Less: Net (loss)/ income attributable to the non-controlling interests | 8,311 | 1,145 | 5,803 | (112,998) | ||
Net loss attributable to Bright Scholar Education Holdings Limited ordinary shareholders | (395,134) | (54,440) | (709,340) | (52,805) | ||
Amounts attributable to Bright Scholar Education Holdings Limited shareholders | ||||||
Net loss from continuing operations | (395,134) | (54,440) | (709,340) | (540,768) | ||
Income from discontinued operations, net of tax | 487,963 | |||||
Net loss attributable to Bright Scholar Education Holdings Limited shareholders | ¥ (395,134) | $ (54,440) | ¥ (709,340) | ¥ (52,805) | ||
Net earnings/(loss) per share attributable to ordinary shareholders — basic and diluted: | ||||||
Net loss from continuing operations attributable to ordinary shareholders (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (3.33) | $ (0.46) | ¥ (5.98) | ¥ (4.54) | ||
Net income from discontinued operations attributable to ordinary shareholders (in Dollars per share and Yuan Renminbi per share) | (per share) | 4.09 | |||||
Net loss attributable to Bright Scholar Education Holdings Limited shareholders (in Dollars per share and Yuan Renminbi per share) | (per share) | ¥ (3.33) | $ (0.46) | ¥ (5.98) | ¥ (0.45) | ||
Weighted average shares used in calculating net earnings/(loss) per ordinary share, basic and diluted (in Shares) | 118,669,795 | 118,669,795 | 118,697,495 | 119,220,331 | ||
[1] For the year ended August 31, 2023, the Group performed impairment test of its goodwill. The Group has determined that based on the underperformance, the market conditions and other factors, it was more likely than not that there were indications of impairment for Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units exceeded their respective fair value. Accordingly, the Group recorded RMB 116,755, RMB 39,840, RMB 30,361 and RMB 20,874 as impairment loss on goodwill of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units on the consolidated statement of operations for the year ended August 31, 2023, respectively. The key assumptions used in the annual goodwill impairment assessment for these reporting units are a discount rate of 17.5% (Can-achieve); 18.0% (Chengdu Yinzhe); 16.5% (Hangzhou Impression); 25.0% (Leti); a terminal growth rate of 2.0% (Can-achieve); 2.0% (Chengdu Yinzhe); 2.0% (Hangzhou Impression); 2.0% (Leti); and forecasts future revenues. The impairment is recorded in complementary education services reportable segment. Furthermore, based on the result of the Group’s annual goodwill impairment performed as of August 31, 2023, it is determined that the carrying amount of the Overseas Schools reporting unit did not exceed its fair value, therefore, no impairment loss was recorded. In the Group’s 2023 annual goodwill impairment assessment for the Overseas Schools reporting unit, the key assumptions used are a discount rate of 15.0% (2022: 15.0%), a terminal growth rate of 2.0% (2022: 2.3%) and forecast future revenue. For each of the years ended August 31, 2021 and 2022, the Company performed impairment test of its goodwill. For the year ended August 31, 2021, the Group has determined that based on the underperformance of Elan reporting unit, market conditions and other factors including the adverse impacts from the regulations on after-school tutoring promulgated by the General Office of State Council and the General Office of Central Committee of the Communist Party of China in the fiscal year 2021, it was more likely than not that there were indications of impairment. Furthermore, the Group also has determined that based on the underperformance of the Chengdu Yinzhe reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Elan and Chengdu Yinzhe reporting unit exceeded their respective fair values. Accordingly, the Group recorded RMB 51,361 and RMB 33,369 as impairment loss on goodwill of Elan and Chengdu Yinzhe on the consolidated statement of operations for the year ended August 31, 2021, respectively. The impairment is recorded in complementary education services reportable segment. Based on the results of the Group’s annual goodwill impairment assessment performed as of August 31, 2022 for all of reporting units, it is determined that the carrying amounts of the Group’s goodwill reporting units did not exceed their respective fair values and, therefore, no impairment existed, except for the Overseas Schools reporting unit. The Group has determined that based on the underperformance of the Overseas Schools reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of the Overseas Schools reporting unit exceeded its fair value. Accordingly, the Group recorded RMB 419,805 as impairment loss on goodwill on the consolidated statement of operations for the year ended August 31, 2022. The impairment is recorded in Overseas Schools reportable segment. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) | 12 Months Ended | |||
Aug. 31, 2023 $ / shares shares | Aug. 31, 2023 ¥ / shares shares | Aug. 31, 2022 ¥ / shares shares | Aug. 31, 2021 ¥ / shares shares | |
Income Statement [Abstract] | ||||
Net loss from continuing operations attributable to ordinary shareholders | (per share) | $ (0.46) | ¥ (3.33) | ¥ (5.98) | ¥ (4.54) |
Net income from discontinued operations attributable to ordinary shareholders | (per share) | 4.09 | |||
Net income/(loss) attributable to Bright Scholar Education Holdings Limited shareholders | (per share) | $ (0.46) | ¥ (3.33) | ¥ (5.98) | ¥ (0.45) |
Weighted average shares used in calculating net earnings/(loss) per ordinary share diluted (in Shares) | 118,669,795 | 118,669,795 | 118,697,495 | 119,220,331 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | ¥ (386,823) | $ (53,295) | ¥ (703,537) | ¥ (165,803) |
Other comprehensive (loss)/income, net of tax | ||||
Foreign currency translation adjustment | 137,775 | 18,982 | (133,840) | (17,156) |
Other comprehensive (loss)/income | 137,775 | 18,982 | (133,840) | (17,156) |
Comprehensive loss | (249,048) | (34,313) | (837,377) | (182,959) |
Less: comprehensive (loss)/income attributable to non-controlling interests | 8,257 | 1,138 | 5,886 | (113,107) |
Comprehensive loss attributable to ordinary shareholders | ¥ (257,305) | $ (35,451) | ¥ (843,263) | ¥ (69,852) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity ¥ in Thousands, $ in Thousands | Share capital CNY (¥) shares | Share capital USD ($) shares | Additional paid-in capital CNY (¥) | Additional paid-in capital USD ($) | Statutory reserves CNY (¥) | Statutory reserves USD ($) | Retained earnings (accumulated deficit) CNY (¥) | Retained earnings (accumulated deficit) USD ($) | Accumulated other comprehensive income CNY (¥) | Accumulated other comprehensive income USD ($) | Total Bright Scholar Education Holdings Limited shareholders’ equity CNY (¥) | Total Bright Scholar Education Holdings Limited shareholders’ equity USD ($) | Non-controlling interests CNY (¥) | Non-controlling interests USD ($) | CNY (¥) shares | USD ($) shares | |||
Balance (in Dollars) | ¥ 8 | ¥ 1,854,262 | ¥ 65,567 | ¥ 632,722 | ¥ 185,371 | ¥ 2,737,930 | ¥ 386,451 | ¥ 3,124,381 | |||||||||||
Balance (in Shares) | shares | 120,015,542 | 120,015,542 | |||||||||||||||||
Balance at Aug. 31, 2020 | ¥ 8 | 1,854,262 | 65,567 | 632,722 | 185,371 | 2,737,930 | 386,451 | 3,124,381 | |||||||||||
Balance (in Shares) at Aug. 31, 2020 | shares | 120,015,542 | 120,015,542 | |||||||||||||||||
Cumulative-effect adjustment upon adoption of ASC Topic | (4,244) | (4,244) | (4,244) | ||||||||||||||||
Net (loss)/income for the year | (52,805) | (52,805) | (112,998) | (165,803) | |||||||||||||||
Loss of control over Affected Entities | (10,235) | (64,945) | 75,180 | ||||||||||||||||
Acquisition of subsidiaries | 18,012 | 18,012 | |||||||||||||||||
Capital injection | 1,370 | 1,370 | |||||||||||||||||
Foreign currency translation adjustment | (17,047) | (17,047) | (109) | (17,156) | |||||||||||||||
Repurchase of ordinary shares | [1] | (24,628) | (24,628) | (24,628) | |||||||||||||||
Cancellation of Treasury Stock | [1] | [2] | [2] | ||||||||||||||||
Cancellation of Treasury Stock (in Shares) | shares | [1] | (1,058,389) | (1,058,389) | ||||||||||||||||
Share-based compensation | 1,865 | 1,865 | 1,865 | ||||||||||||||||
Provision for statutory reserves | 1,909 | (1,909) | |||||||||||||||||
Distribution of dividends to shareholders | [3] | (92,554) | (92,554) | (92,554) | |||||||||||||||
Distribution of dividends to non-controlling interest shareholders | [4] | (17,697) | (17,697) | ||||||||||||||||
Acquisition of additional interest in subsidiaries of non-controlling interests | (1,690) | (1,690) | (14,980) | (16,670) | |||||||||||||||
Balance at Aug. 31, 2021 | ¥ 8 | 1,727,020 | 2,531 | 648,944 | 168,324 | 2,546,827 | 260,049 | 2,806,876 | |||||||||||
Balance (in Shares) at Aug. 31, 2021 | shares | 118,957,153 | 118,957,153 | |||||||||||||||||
Balance (in Dollars) | ¥ 8 | 1,727,020 | 2,531 | 648,944 | 168,324 | 2,546,827 | 260,049 | 2,806,876 | |||||||||||
Balance (in Shares) | shares | 118,957,153 | 118,957,153 | |||||||||||||||||
Net (loss)/income for the year | (709,340) | (709,340) | 5,803 | (703,537) | |||||||||||||||
Capital injection | 1,000 | 1,000 | 6,160 | 7,160 | |||||||||||||||
Foreign currency translation adjustment | (133,923) | (133,923) | 83 | (133,840) | |||||||||||||||
Repurchase of ordinary shares | [1] | (9,245) | (9,245) | (9,245) | |||||||||||||||
Cancellation of Treasury Stock | [1] | [2] | [2] | ||||||||||||||||
Cancellation of Treasury Stock (in Shares) | shares | [1] | (287,358) | (287,358) | ||||||||||||||||
Share-based compensation | (816) | (816) | (816) | ||||||||||||||||
Provision for statutory reserves | 12,341 | (12,341) | |||||||||||||||||
Distribution of dividends to non-controlling interest shareholders | [4] | (27,473) | (27,473) | ||||||||||||||||
Acquisition of additional interest in subsidiaries of non-controlling interests | (24,601) | (24,601) | (18,981) | (43,582) | |||||||||||||||
Balance at Aug. 31, 2022 | ¥ 8 | 1,693,358 | 14,872 | (72,737) | 34,401 | 1,669,902 | 225,641 | ¥ 1,895,543 | |||||||||||
Balance (in Shares) at Aug. 31, 2022 | shares | 118,669,795 | 118,669,795 | 118,669,795 | 118,669,795 | |||||||||||||||
Balance (in Dollars) | ¥ 8 | 1,693,358 | 14,872 | (72,737) | 34,401 | 1,669,902 | 225,641 | ¥ 1,895,543 | |||||||||||
Balance (in Shares) | shares | 118,669,795 | 118,669,795 | 118,669,795 | 118,669,795 | |||||||||||||||
Net (loss)/income for the year | (395,134) | (395,134) | 8,311 | ¥ (386,823) | $ (53,295) | ||||||||||||||
Capital injection | 765 | 765 | |||||||||||||||||
Foreign currency translation adjustment | 137,829 | 137,829 | (54) | 137,775 | 18,982 | ||||||||||||||
Provision for statutory reserves | 5,283 | (5,283) | |||||||||||||||||
Distribution of dividends to non-controlling interest shareholders | (58,304) | (58,304) | |||||||||||||||||
Acquisition of additional interest in subsidiaries of non-controlling interests | (7,877) | (7,877) | (19,886) | (27,763) | |||||||||||||||
Disposal of a subsidiary to an entity under common control | 8,282 | 8,282 | 2,181 | 10,463 | |||||||||||||||
Exemption for future capital injection | 3,607 | 3,607 | (3,607) | ||||||||||||||||
Balance at Aug. 31, 2023 | ¥ 8 | $ 1 | 1,697,370 | $ 233,856 | 20,155 | $ 2,777 | (473,154) | $ (65,189) | 172,230 | $ 23,729 | 1,416,609 | $ 195,174 | 155,047 | $ 21,362 | ¥ 1,571,656 | $ 216,536 | |||
Balance (in Shares) at Aug. 31, 2023 | shares | 118,669,795 | 118,669,795 | 118,669,795 | 118,669,795 | |||||||||||||||
Balance (in Dollars) | ¥ 8 | $ 1 | ¥ 1,697,370 | $ 233,856 | ¥ 20,155 | $ 2,777 | ¥ (473,154) | $ (65,189) | ¥ 172,230 | $ 23,729 | ¥ 1,416,609 | $ 195,174 | ¥ 155,047 | $ 21,362 | ¥ 1,571,656 | $ 216,536 | |||
Balance (in Shares) | shares | 118,669,795 | 118,669,795 | 118,669,795 | 118,669,795 | |||||||||||||||
[1]The repurchase of ordinary shares is accounted for under the cost method whereby the entire cost of the acquired ordinary shares is recorded as treasury stock. During the years ended August 31, 2021, 2022 and 2023, the Group repurchased a total of 560,436, 258,731 and nil ordinary shares from the market for a cash consideration of RMB 24,628, RMB 9,245, and RMB nil, respectively. Total of 1,058,389 ordinary shares, 287,358 ordinary shares and nil ordinary shares have been cancelled by the Group during the years ended August 31, 2021, 2022 and 2023, respectively. As of August 31, 2023, the number of treasury stock is nil.[2]The Group has distributed a cash dividend of RMB 17,697, RMB 27,473 and RMB 58,304 to the non-controlling interest shareholders during the years ended August 31, 2021, 2022 and 2023, respectively. The cash dividend has been fully paid as of August 31, 2021, 2022 and 2023, respectively.[3]Board of directors (the “Board”) has approved and declared a cash dividend US$0.12 per ordinary shares in July 2021. The total amount of cash dividends distributed is US$14,326 (equivalents to RMB 92,554) during the years ended August 31, 2021. The cash dividend has been fully paid as of August 31, 2021.[4]During the year ended August 31, 2023, the Company disposed of a subsidiary to Wuhan Sannew Education Development Co., Ltd. (“Wuhan Sannew”) with a total consideration of RMB 1,000, which equals to the share capital of the disposed subsidiary. Wuhan Sannew is one of the Affected Entities, which had been deconsolidated due to the effectiveness of the Implementation Rules on August 31, 2021. The difference of RMB 8,282 between the consideration of RMB 1,000 and the carrying amounts of the net assets transferred of RMB (9,463) including the non-controlling interests of RMB (2,181) is recognized in additional paid-in capital of the Company. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 21, 2023 CNY (¥) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | ||||
Cash flows from operating activities | ||||||||
Net loss for the year | ¥ (386,823) | $ (53,295) | ¥ (703,537) | ¥ (165,803) | ||||
Adjustments to reconcile net cash flows from operating activities: | ||||||||
Depreciation | 69,003 | 9,507 | 98,120 | 188,831 | ||||
Amortization of land use rights | 2,127 | |||||||
Amortization of intangible assets | 14,916 | 2,055 | 17,814 | 30,781 | ||||
Noncash lease expense | 123,383 | 16,999 | 132,392 | 251,360 | ||||
Impairment loss on property and equipment | 12,891 | 1,776 | 6,586 | |||||
Impairment loss on operating lease right-of-use assets | 8,861 | 15,575 | ||||||
Impairment loss on the long-term investment | 2,613 | 360 | ||||||
Impairment loss on intangible assets | 2,052 | 283 | ¥ 2,052 | 113,385 | ||||
Impairment loss on goodwill | 207,830 | [1] | 28,633 | 419,805 | [2] | 84,730 | ||
Gain on lease early termination | (28,688) | (3,952) | (17,022) | |||||
Provision/(reversal) of current expected credit losses | 12,054 | 1,661 | (5,835) | 7,077 | ||||
Finance costs | 344 | 47 | 19,853 | 15,746 | ||||
Loss/(gain) on disposal of property and equipment | (14,571) | (2,008) | 582 | 187 | ||||
Share of equity in loss of unconsolidated affiliates* | [3] | 339 | 47 | 39,747 | 1,218 | |||
Share-based compensation | (816) | 1,865 | ||||||
Loss on deconsolidation of Affected Entities | [4] | 261,267 | ||||||
Investment (income)/loss | 1,464 | 202 | (83,787) | |||||
Deferred income taxes | 108,110 | 14,895 | (33,535) | (44,342) | ||||
Fair value change of contingent consideration payable for Leti acquisition | (11,541) | (1,590) | ||||||
Changes in operating assets and liabilities and other, net: | ||||||||
Accounts receivable | 521 | 72 | 27,279 | (37,966) | ||||
Inventories | 1,378 | 189 | 710 | (2,736) | ||||
Amounts due from related parties | 5,376 | 741 | (12,361) | 897 | ||||
Other receivables, deposits and other assets | (2,491) | (343) | (36,650) | (2,194) | ||||
Accounts payable | (1,496) | (206) | 36,857 | 997 | ||||
Amounts due to related parties | 10,289 | 1,418 | 86,533 | (2,349) | ||||
Accrued expenses and other current liabilities | (25,923) | (3,572) | 74,936 | 220,334 | ||||
Contract liabilities | (13,740) | (1,893) | 114,800 | 162,810 | ||||
Refund liabilities | (2,945) | (406) | (11,845) | (70,712) | ||||
Other assets and liabilities | 37,508 | 5,168 | (132,071) | (20,677) | ||||
Operating lease liabilities | (99,592) | (13,721) | (113,628) | (200,215) | ||||
Net cash provided by operating activities | 22,261 | 3,067 | 47,173 | 698,808 | ||||
Cash flows from investing activities | ||||||||
Purchase of short-term investments | (2,337,000) | (3,892,690) | ||||||
Proceed from redemption of short-term investments upon maturity | 1,536,494 | 3,905,707 | ||||||
Additions of property and equipment and intangible assets | (79,375) | (10,935) | (89,644) | (158,673) | ||||
Proceeds from sale of property and equipment | 26,445 | 3,643 | 2,949 | 2,189 | ||||
Acquisition of subsidiaries, net of cash acquired of RMB 164, RMB nil and RMB nil in 2021, 2022 and 2023, respectively | (1,755) | |||||||
Payment for an equity method investment | (1,134) | |||||||
Disposal of a subsidiary, net of cash disposed of RMB nil, RMB nil and RMB 19 in 2021, 2022 and 2023, respectively | (19) | (3) | ||||||
Net cash outflow from loss of control of Affected Entities | [4] | (2,912,290) | ||||||
Purchase of long-term investments | (5,000) | (21,890) | ||||||
Proceed from redemption of long-term investment | 1,500 | |||||||
Proceeds from loan receivable | 55,432 | |||||||
Net cash used in investing activities | (52,949) | (7,295) | (836,769) | (3,079,036) | ||||
Cash flows from financing activities | ||||||||
Payments for purchase of non-controlling interest | (27,763) | (3,825) | (43,582) | (16,670) | ||||
Advances from related parties | 1,806,663 | |||||||
Repayments for advances from related parties | (41,563) | (5,725) | ||||||
Proceeds from related party loan | 480,000 | |||||||
Repayment for related party loan | (480,000) | |||||||
Repurchase of ordinary shares | (9,245) | (24,628) | ||||||
Dividend to shareholders | (92,554) | |||||||
Dividend to non-controlling interests | (58,304) | (8,033) | (27,473) | (17,697) | ||||
Proceeds from bank loans | 629,008 | 1,047,188 | ||||||
Repayment for bank loans | (171,929) | (23,688) | (1,221,799) | (1,228,550) | ||||
Repurchase of bonds | (394,756) | (80,174) | ||||||
Redemption of bonds | (1,513,460) | |||||||
Capital injection from non-controlling interests | 765 | 105 | 7,160 | 1,370 | ||||
Proceeds from promissory note | 877,487 | |||||||
Net cash (used in)/provided by financing activities | (298,794) | (41,166) | 101,383 | (446,534) | ||||
Net decrease in cash and cash equivalents, and restricted cash | (329,482) | (45,394) | (688,213) | (2,826,762) | ||||
Cash and cash equivalents and restricted cash at beginning of the year | 857,784 | 118,181 | ¥ 857,784 | 1,515,163 | 4,423,937 | |||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 38,934 | 5,364 | 30,834 | (82,012) | ||||
Cash and cash equivalents and restricted cash at end of the year | 567,236 | 78,151 | 857,784 | 1,515,163 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Income tax paid | 65,993 | 9,092 | 153,821 | 68,602 | ||||
Non-cash investing and financing activities: | ||||||||
Accounts payable balance for acquisition of property and equipment | (6,812) | (939) | (5,205) | (14,668) | ||||
Amounts due to related parties balance for acquisition of property and equipment | (497) | (69) | (512) | (19,519) | ||||
Other receivables, deposits and other assets balance for disposal of property and equipment | 25,256 | 3,480 | ||||||
Right-of-use assets obtained in exchange for the new operating lease liabilities | 30,165 | 4,156 | 86,116 | 179,968 | ||||
Decrease of Right-of-use assets for early termination | 23,380 | 3,221 | 55,908 | 23,815 | ||||
Decrease of amount due to related parties by offsetting with short-term investments (Note 18) | 884,293 | |||||||
Increase of amount due from related parties from disposal of property and equipment (Note 18) | 57,998 | |||||||
Chengdu Yinzhe | ||||||||
Adjustments to reconcile net cash flows from operating activities: | ||||||||
Impairment loss on goodwill | 39,840 | 33,369 | ||||||
Cash flows from financing activities | ||||||||
Payment for acquisition | (22,579) | |||||||
Leti | ||||||||
Cash flows from financing activities | ||||||||
Payment for acquisition | (2,500) | |||||||
Linstitute | ||||||||
Cash flows from financing activities | ||||||||
Payment for acquisition | ¥ (6,120) | ¥ (12,240) | ||||||
[1] For the year ended August 31, 2023, the Group performed impairment test of its goodwill. The Group has determined that based on the underperformance, the market conditions and other factors, it was more likely than not that there were indications of impairment for Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units exceeded their respective fair value. Accordingly, the Group recorded RMB 116,755, RMB 39,840, RMB 30,361 and RMB 20,874 as impairment loss on goodwill of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units on the consolidated statement of operations for the year ended August 31, 2023, respectively. The key assumptions used in the annual goodwill impairment assessment for these reporting units are a discount rate of 17.5% (Can-achieve); 18.0% (Chengdu Yinzhe); 16.5% (Hangzhou Impression); 25.0% (Leti); a terminal growth rate of 2.0% (Can-achieve); 2.0% (Chengdu Yinzhe); 2.0% (Hangzhou Impression); 2.0% (Leti); and forecasts future revenues. The impairment is recorded in complementary education services reportable segment. Furthermore, based on the result of the Group’s annual goodwill impairment performed as of August 31, 2023, it is determined that the carrying amount of the Overseas Schools reporting unit did not exceed its fair value, therefore, no impairment loss was recorded. In the Group’s 2023 annual goodwill impairment assessment for the Overseas Schools reporting unit, the key assumptions used are a discount rate of 15.0% (2022: 15.0%), a terminal growth rate of 2.0% (2022: 2.3%) and forecast future revenue. For each of the years ended August 31, 2021 and 2022, the Company performed impairment test of its goodwill. For the year ended August 31, 2021, the Group has determined that based on the underperformance of Elan reporting unit, market conditions and other factors including the adverse impacts from the regulations on after-school tutoring promulgated by the General Office of State Council and the General Office of Central Committee of the Communist Party of China in the fiscal year 2021, it was more likely than not that there were indications of impairment. Furthermore, the Group also has determined that based on the underperformance of the Chengdu Yinzhe reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Elan and Chengdu Yinzhe reporting unit exceeded their respective fair values. Accordingly, the Group recorded RMB 51,361 and RMB 33,369 as impairment loss on goodwill of Elan and Chengdu Yinzhe on the consolidated statement of operations for the year ended August 31, 2021, respectively. The impairment is recorded in complementary education services reportable segment. Based on the results of the Group’s annual goodwill impairment assessment performed as of August 31, 2022 for all of reporting units, it is determined that the carrying amounts of the Group’s goodwill reporting units did not exceed their respective fair values and, therefore, no impairment existed, except for the Overseas Schools reporting unit. The Group has determined that based on the underperformance of the Overseas Schools reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of the Overseas Schools reporting unit exceeded its fair value. Accordingly, the Group recorded RMB 419,805 as impairment loss on goodwill on the consolidated statement of operations for the year ended August 31, 2022. The impairment is recorded in Overseas Schools reportable segment. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Acquisition of subsidiaries, cash acquired | ¥ 164 | ||
Disposal of a subsidiary, net cash disposed | ¥ 19 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Aug. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Bright Scholar Education Holdings Limited (the “Company”) was incorporated under the laws of Cayman Islands on December 16, 2016. The Company, its subsidiaries, schools, its variable interest entities (the “VIE”s) and its VIEs’ subsidiaries and schools (collectively referred to as the “Group”) are principally engaged in the provision of education services, including for-profit kindergarten in the People’s Republic of China (the “PRC”), complementary education services, operation services for domestic schools, and education programs and services including independent schools and colleges in United Kingdom (the “UK”) and the United States (the “US”). On May 14, 2021, the General Office of the State Council of the People’s Republic of China (the “PRC State Council”) announced the issuance of the Implementation Regulations of the People’s Republic of China on the Law Regarding the Promotion of Private Education (the “Implementation Rules”), which became effective on September 1, 2021. The Implementation Rules prohibit social organizations and individuals from controlling a private school that provides compulsory education or a non-profit private school that provides pre-school education by means of merger, acquisition, contractual arrangements, etc., and a private school providing compulsory education is prohibited from conducting transactions with its related parties, and any other private school conducting any transaction with any related party shall follow the principles of openness, fairness and impartiality, fix the price reasonably and regulate the decision-making, and shall not damage the interests of the state and the school or the rights and interests of the teachers and students, which may impose restrictions on the above-mentioned related party transactions. Compulsory education in this context means the nine years of curriculum education mandated by the PRC, consisting of six years of primary education at primary school and three years of secondary education at middle school. Moreover, all Company’s international schools provide partial or complete compulsory education services in the PRC. Pursuant to the Implementation Rules, (1) foreign-invested enterprises established in China and social organizations whose actual controllers are foreign parties shall not sponsor, participate in or actually control private schools that provide compulsory education, (2) social organizations or individuals shall not control any private school that provides compulsory education or any non-profit private school that provides pre-school education by means of merger, acquisition, contractual arrangements, etc., and (3) private schools providing compulsory education shall not conduct any transaction with any related party. Under the Implementation Rules, private schools providing compulsory education is prohibited from being controlled through contractual arrangement and conducting transactions with its related parties and hence, significantly affects the enforceability of the exclusive management services and business cooperation agreements with the schools providing compulsory education, including the Company’s primary schools, middle schools and international schools. In addition, the Company’s high schools provide high school education services in conjunction with compulsory education under the same school entities, as such, they are also affected by the Implementation Rules. Such prohibition has significantly affected the enforceability of the exclusive management services and business cooperation agreements with school entities providing compulsory education. the Company have ceased to recognize revenues for all activities related to the Affected Entities with compulsory education and discontinued all business activities with such entities, by August 31, 2021 while continuing to provide essential services to keep these schools open. As refer to Note 18, in May and June 2023, the staff related to such services had transferred out from the services center in the Company’s headquarters and the Company ceased to provide such services. Furthermore, taking into account Guangdong Country Garden Education Investment Management Co., Ltd. (“BGY Education Investment”) acts as a special purpose vehicle established as a holding company to hold interest in the Affected Entities and is engaged in investment in private schools providing compulsory education and not-for-profit kindergartens education as the school sponsor or the holding company thereof, the contractual arrangements with BGY Education Investment are more likely than not violating the Implementation Rules, and accordingly, the Company is subject to significant risks of uncertainties of the validity and enforcement of the contractual arrangements between the Company’s wholly owned subsidiary (the “WFOE”) Zhuhai Hengqin Bright Scholar Management Consulting Co. Ltd. (“Zhuhai Bright Scholar”), BGY Education Investment, its subsidiaries and private schools that provides compulsory education and non-for-profit kindergartens. As a result of the effectiveness of the Implementation Rules, the Company would no longer be able to use its power under the contractual arrangements as disclosed in Note 2(b) to direct the relevant activities that would most significantly affect the economic performance of those schools and hence, has lost control on August 31, 2021 over the private schools providing compulsory education, not-for-profit kindergartens and other enterprises within China, including BGY Education Investment, that are affected by the Implementation Rules. All such entities are collectively named as “Affected Entities”. The Company assessed the implications of Implementation Rules and concluded that, based on all relevant facts and circumstances, and after consultation with its PRC legal counsel and external advisors, the ability of the Group to use its power under the contractual arrangements with BGY Education Investment to direct the relevant activities that would most significantly affect the economic performance of the Affected Entities had ceased on August 31, 2021 immediately before the Implementation Rules became effective. Accordingly, the carrying amount related to the net assets of the Affected Entities were deconsolidated from the consolidated financial statements of the Group as of August 31, 2021. In addition, after August 31, 2021, the remaining businesses of the Group are mainly engaged in the provision of overseas education programs and services, complementary education services, operation services for domestic schools, including catering and procurement services, and for-profit kindergarten education programs and services. The schools under the VIE entities are 8 and 9 for-profit kindergartens as of August 31, 2022 and 2023, respectively. There were no significant changes in the nature of the Group’s principal activities during the year ended August 31, 2023. As of August 31, 2023, details of the material Company’s subsidiaries, schools, its VIEs and the VIE’s major subsidiaries and schools of the continuing operations were as follows: Name Place of Date of Equity interest Principal activities Major wholly owned subsidiaries: Impetus Investment Limited (“Impetus”) Cayman April 1, 2014 100 % Investment holding Zhuhai Bright Scholar PRC January 24, 2017 100 % Management consulting service Time Education China Holdings Limited Hong Kong August 16, 2013 100 % Investment holding Bright Scholar (Enlightenment) Investment Holdings Limited Cayman December 27, 2017 100 % Investment holding Shenzhen Qianhai Xingkeyucai Trading Co., Ltd. PRC December 15, 2016 100 % Complementary education services Can-achieve (Beijing) Education Consulting Co., Ltd. PRC May 14, 2008 70 % Complementary education services Guangdong Bright Scholar Education Technology Co., Ltd. PRC September 26, 2017 100 % Complementary education services Guangdong Zhixing Weilai Logistics Management Co., Ltd. PRC October 24, 2018 100 % Complementary education services Bright Scholar (UK) Holdings Limited UK July 31, 2018 100 % Investment holding CATS Colleges Holdings Limited UK March 13, 2019 100 % Investment holding Cambridge Arts and Science Limited UK October 23, 1997 100 % Overseas education services The Worthgate School Canterbury UK August 29, 2007 100 % Overseas education services Guildhouse School London UK November 17, 2010 100 % Overseas education services CATS Academy Boston Inc. US July 5, 2012 100 % Overseas education services VIEs of the Company: Foshan Meiliang Education Technology Co., Ltd. PRC August 13, 2021 100 % Investment holding Foshan Zhiliang Education Technology Co., Ltd. PRC August 13, 2021 100 % Investment holding Beijing Boteng Consulting Co., Ltd. PRC June 1, 2021 100 % Investment holding Foshan Shangtai Education Technology Co., Ltd. PRC August 13, 2021 100 % Investment holding Foshan Renliang Education Technology Co., Ltd. PRC August 12, 2021 100 % Investment holding Foshan Yongliang Education Technology Co., Ltd. PRC August 13, 2021 100 % Investment holding Major subsidiaries and schools of the VIEs: Dongguan Qingxi Country Garden Kindergarten PRC January 9, 2018 100 % Kindergarten education services Chengdu Pidu Bright Scholar Kindergarten Co., Ltd. PRC September 11, 2020 100 % Kindergarten education services Guangzhou Zengcheng Fettes College Kindergarten Co., Ltd. PRC September 15, 2020 100 % Kindergarten education services Beijing Huanxue International Travel Limited PRC October 16, 2020 100 % Complementary education services Foshan Shunde Shengbo Culture and Arts Training Co., Ltd. PRC July 16, 2015 100 % Complementary education services Chengdu Laizhe Education and Technology Co., Ltd. PRC November 12, 2013 90 % Complementary education services Shanghai Huodai Commercial Information Consulting Co., Ltd. PRC December 14, 2017 60 % Complementary education services |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). As a result of the Implementation Rules stated in Note 1, the Group has considered that it lost control over Affected Entities providing compulsory education and not-for-profit kindergartens education in China by August 31, 2021, and therefore deconsolidated the Affected Entities on August 31, 2021. In addition, the Group concluded that the Affected Entities together represent a group of components of the Group and the deconsolidation represents a strategic shift that has (or will have) a major effect on the Group’s operations and financial results. Therefore, the Group has presented the results related to the Affected Entities as discontinued operations in its consolidated statements of operations and comprehensive loss for all historical comparative periods presented. (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, schools, its VIEs and the VIEs’ subsidiaries and schools. All inter-company transactions and balances have been eliminated upon consolidation. Consolidation of VIEs Prior to the effectiveness of the Implementation Rules, PRC laws and regulations prohibit foreign ownership of companies and institutions providing compulsory education services at primary and middle school levels, and restrict foreign investment in education services at the kindergarten and high school level. In addition, the PRC government regulates the provision of education services through strict licensing requirements. Accordingly, the Company, through its WFOE, Zhuhai Bright Scholar, have entered into the following contractual arrangements with BGY Education Investment, BGY Education Investment’s subsidiaries and schools, and BGY Education Investment’s shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE. In response to the Implementation Rules, a set of supplementary agreements to the contractual arrangements were entered into among Company’s WFOE, Zhuhai Bright Scholar, BGY Education Investment, BGY Education Investment’s shareholders and six newly established companies in August 2021 to enable them, as well as their subsidiaries, to entitle to the same power, rights and obligations of the contractual arrangements as BGY Education Investment. The six newly established companies, including Foshan Meiliang Education Technology Co., Ltd., Foshan Zhiliang Education Technology Co., Ltd., Beijing Boteng Education Consulting Co., Ltd., Foshan Shangtai Education Technology Co., Ltd., Foshan Renliang Education Technology Co., Ltd. and Foshan Yongliang Education Technology Co., Ltd. (collectively referred to as the “New VIEs”), are owned by the same equity shareholders as BGY Education Investment. On the same day, the New VIEs obtained the equity interest of the subsidiaries providing complementary education services, operation services for domestic schools and for-profit kindergartens from BGY Education Investment, which were previously held by BGY Education Investment. Accordingly, the Group had consolidated the financial position and operating results of BGY Education Investment, new VIEs and its subsidiaries and schools in the consolidated financial statements of the Company during the year ended August 31, 2021 before the Group lost control over the Affected Entities by August 31, 2021 as a result of the effectiveness of the Implementation Rules. The Company’s VIE includes (1) BGY Education Investment and the schools and subsidiaries it held, prior to August 31, 2021; and (2) the New VIEs and subsidiaries and schools they hold respectively before and after August 31, 2021. Agreements that provide the Group with effective control over the VIEs include: Voting Rights Proxy Agreement & Irrevocable Power of Attorney During the year ended August 2021 before the Group lost control over the Affected Entities by August 31, 2021, under voting right proxy agreement and irrevocable power of attorney, each of the shareholders of BGY Education Investment has executed a power of attorney to grant Zhuhai Bright Scholar the power of attorney to act on his or her behalf on all matters pertaining to the BGY Education Investment and to exercise all of his or her rights as a shareholder of BGY Education Investment, including but not limited to convene, attend and vote at shareholders’ meetings, designate and appoint directors and senior management members. The proxy agreement will remain in effect unless Zhuhai Bright Scholar terminates the agreement by giving a prior written notice or gives its consent to the termination by BGY Education Investment. As agreed in the aforementioned supplementary agreements, including supplementary irrevocable power of attorney, the irrevocable power of attorney between each of the shareholders of BGY Education Investment and Zhuhai Bright Scholar was terminated on August 31, 2021 due to the effectiveness of the Implementation Rules. Meanwhile, under the respective supplementary agreements, the shareholders of New VIEs entitle to the same power, rights and obligations of the contractual arrangements as the shareholders of BGY Education Investment previously entitled. Exclusive Call Option Agreement Under the exclusive call option agreement, each of the shareholders of BGY Education Investment and the New VIEs granted Zhuhai Bright Scholar or its designated representative(s) an irrevocable and exclusive option to purchase their equity interests in BGY Education Investment and the New VIEs when and to the extent permitted by PRC law. Zhuhai Bright Scholar or its designated representative(s) has sole discretion as to when to exercise such options, either in part or in full. Without Zhuhai Bright Scholar’s written consent, the shareholders of BGY Education Investment and the New VIEs shall not transfer, donate, pledge, or otherwise dispose any equity interests of BGY Education Investment and the New VIEs in any way. The acquisition price for the shares or assets will be the minimum amount of consideration permitted under the PRC law at the time when the option is exercised. The agreement cannot be terminated by BGY Education Investment, the New VIEs or their shareholders. There is no change made on the exclusive call option agreement among each of the shareholders of BGY Education Investment and Zhuhai Bright Scholar during years ended August 31, 2021, 2022 and 2023. In August 2021, the shareholders of New VIEs entered into the exclusive call option agreement with Zhuhai Bright Scholar, and no change was made since then. Equity Pledge Agreement Under the equity pledge agreement, each of the shareholders pledged all of their equity interests in BGY Education Investment and the New VIEs to Zhuhai Bright Scholar as collateral to secure their obligations under the equity pledge agreements. If the shareholders of BGY Education Investment and the New VIEs breach their respective contractual obligations, Zhuhai Bright Scholar, as pledgee, will be entitled to certain rights, including the right to dispose the pledged equity interests. Pursuant to the agreement, the shareholders of BGY Education Investment and the New VIEs shall not transfer, assign or otherwise create any new encumbrance on their respective equity interest in BGY Education Investment and the New VIEs without prior written consent of Zhuhai Bright Scholar. The equity pledge right held by Zhuhai Bright Scholar will expire when the shareholders of BGY Education Investment and the New VIEs, and Zhuhai Bright Scholar have fully performed their respective obligations under the Consulting Services Agreement and Operating Agreement, or the shareholder is no longer a shareholder of BGY Education Investment, the New VIEs or the satisfaction of all its obligations by BGY Education Investment and the New VIEs under the VIE contractual arrangements. There is no change made on the equity pledge agreement among each of the shareholders of BGY Education Investment and Zhuhai Bright Scholar during years ended August 31, 2021, 2022 and 2023. In August 2021, the shareholders of New VIEs entered into the equity pledge agreement with Zhuhai Bright Scholar, and no change was made since then. The agreements that transfer economic benefits of BGY Education Investment and the New VIEs to the Group include: Exclusive Management Services and Business Cooperation Agreement During the year ended August 2021 before the Group lost control over the Affected Entities by August 31, 2021, under the exclusive management services and business cooperation agreement, BGY Education Investment engages Zhuhai Bright Scholar as its exclusive technical and operational consultant and under which Zhuhai Bright Scholar agrees to assist in business development and related services necessary to conduct BGY Education Investment’s operational activities. BGY Education Investment shall not seek or accept similar services from other providers without the prior written approval of Zhuhai Bright Scholar. The agreements will be effective as long as BGY Education Investment exists. Zhuhai Bright Scholar may terminate this agreement at any time by giving a prior written notice to BGY Education Investment. As agreed in the aforementioned supplementary agreements, including supplementary exclusive management services and business cooperation agreement, the exclusive management services and business cooperation agreement between BGY Education Investment and Zhuhai Bright Scholar was terminated on August 31, 2021 due to the effectiveness of the Implementation Rules. Meanwhile, under the respective supplementary agreements, the New VIEs engages Zhuhai Bright Scholar as its exclusive technical and operational consultant and under which Zhuhai Bright Scholar agrees to assist in business development and related services necessary to conduct the New VIEs’ operational activities. The New VIEs shall not seek or accept similar services from other providers without the prior written approval of Zhuhai Bright Scholar. The agreements will be effective as long as the New VIEs exists. Zhuhai Bright Scholar may terminate this agreement at any time by giving a prior written notice to the New VIEs. Under the above agreements, the shareholders of BGY Education Investment (prior to termination of the agreement on August 31, 2021) and the New VIEs irrevocably granted Zhuhai Bright Scholar the power to exercise all voting rights to which they were entitled in the respective periods. In addition, Zhuhai Bright Scholar has the option to acquire all of the equity interests in BGY Education Investment and the New VIEs, to the extent permitted by the then-effective PRC laws and regulations, for nominal consideration in the respective periods. Finally, Zhuhai Bright Scholar is entitled to receive service fees for services to be provided to BGY Education Investment and the New VIEs in the respective periods. As of August 31, 2021, based on all relevant facts and circumstances, and advices from the Company’s PRC legal advisor, the Company concluded that it no longer has a controlling interest in the Affected Entities due to the effectiveness of the Implementation Rules, which resulted to the deconsolidation of the Affected Entities. In addition, as agreed in the aforementioned supplementary agreements, certain contractual agreements with BGY Education Investment and its shareholders including exclusive management services and business cooperation agreement and irrevocable power of attorney were terminated on August 31, 2021 due to the effectiveness of the Implementation Rules. Nevertheless, the legal enforceability of the contractual arrangements with the New VIEs and its subsidiaries and schools is not impacted by the Implementation Rules. During the years ended August 31, 2022 and 2023, the Group believes that the contractual arrangements with the New VIEs are in compliance with the PRC law and regulations and are legally enforceable. The Call Option Agreement and Voting Rights Proxy Agreement provide the Group with effective control over the BGY Education Investment (prior to August 31, 2021) and the New VIEs, while the Equity Pledge Agreements secure the obligations of the shareholders of BGY Education Investment (prior to August 31, 2021) and the New VIEs under the relevant agreements. Because the Group, through Zhuhai Bright Scholar, has (i) the power to direct the activities of BGY Education Investment (prior to the termination of the Exclusive Management Services and Business Cooperation Agreement on August 31, 2021) Prior to the effective of the Implementation Rules, during the year ended August 31, 2021 before the Group lost control over the Affected Entities as a result of the effect of the Implementation Rules, the Group believes that the contractual arrangements with the VIEs are in compliance with the PRC law and regulations and are legally enforceable. Risks related contractual arrangements Subsequent to the Implementation Rules became effective on September 1, 2021, except for Affected Entities, the contractual arrangements continue to be legally enforceable. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. If the ownership structure of the Company and the contractual arrangements are found to violate any PRC laws or regulations, or if the Company is found to be required but failed to obtain any of the permits or approvals for its private education business, the relevant PRC regulatory authorities would have broad discretion in imposing fines or punishments upon the Company for such violations, including: ● revoking the business and operating licenses of the Group and/or its VIEs; ● discontinuing or restricting any related-party transactions between the Group and its VIEs; ● imposing fines and penalties, or imposing additional requirements for the Group’s operations with which it, or its VIEs may not be able to comply; ● requiring the Group to restructure the ownership and control structure or its current schools; ● restricting or prohibiting the use of the proceeds of the Company’s equity offerings to finance its business and operations in China, particularly the expansion of its business through strategic acquisitions; or ● restricting the use of financing sources by the Group or its affiliated entities or otherwise restricting the Group’s or its VIEs’ ability to conduct business. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Group may not be able to consolidate BGY Education Investment and the New VIEs in its consolidated financial statements as it may lose the ability to exert effective control over BGY Education Investment, the New VIEs and their shareholders, and it may lose the ability to receive economic benefits from BGY Education Investment and the New VIEs. The following balances of VIEs as of August 31, 2022 and 2023, were included in the Group’s consolidated balance sheet after the elimination of intercompany balances, respectively. As of August 31, 2022 2023 RMB RMB ASSETS Current assets Cash and cash equivalents 142,642 139,913 Restricted cash, net 10,410 18,740 Accounts receivable, net 2,416 8,097 Amounts due from related parties, net 10,375 4,148 Other receivables, deposits and other assets, net 16,884 39,025 Inventories 5,748 4,334 Total current assets 188,475 214,257 Restricted cash - non current 1,650 1,650 Property and equipment, net 46,747 36,799 Intangible assets, net 44,137 34,656 Goodwill, net 227,814 167,100 Long-term investments 30,289 27,676 Prepayments for construction contract 4,025 950 Operating lease right-of-use assets – non-current 76,607 63,131 Other non-current assets, net 6,311 6,151 Total non-current assets 437,580 338,113 TOTAL ASSETS 626,055 552,370 LIABILITIES Current liabilities Accounts payable 6,154 3,638 Amounts due to related parties 294,164 255,453 Accrued expenses and other current liabilities 27,790 74,317 Income tax payable 19,983 23,422 Contract liabilities 107,494 111,592 Refund liabilities 9,458 7,606 Operating lease liabilities – current 20,779 22,365 Total current liabilities 485,822 498,393 Non-current portion of contract liabilities 1,108 1,147 Deferred tax liabilities, net 9,551 7,375 Operating lease liabilities – non current 72,464 64,013 Other non-current liabilities due to related parties 11,197 — Total non-current liabilities 94,320 72,535 TOTAL LIABILITIES 580,142 570,928 The following amounts of VIEs for the years ended August 31, 2021, 2022 and 2023, were included in the Group’s consolidated statements of operations and consolidated statements of cash flows after the elimination of intercompany balances. For the year ended August 31, 2021 2022 2023 RMB RMB RMB Revenue from continuing operations of the New VIEs 311,373 327,573 455,476 Revenue from discontinued operations of Affected Entities 2,303,339 — — Net income from continuing operation of the New VIEs after elimination of intercompany transactions 30,335 45,770 1,876 Net income from discontinued operations of Affected Entities (Note 3) after elimination of intercompany transactions 369,343 — — Net cash provided by operating activities 555,679 36,096 141,875 Net cash used in investing activities* (2,893,644 ) (54,677 ) (68,610 ) Net cash (used in)/provided by financing activities (42,844 ) 26,281 (67,664 ) Net (decrease)/increase in cash and cash equivalents and restricted cash (2,380,809 ) 7,700 5,601 Cash and cash equivalents and restricted cash at beginning of year 2,527,811 147,002 154,702 Cash and cash equivalents and restricted cash at end of year 147,002 154,702 160,303 Note*: Due to loss of control of the Affected Entities on August 31, 2021, the net cash outflow disclosed in investing activities is RMB 2,912,290. VIEs contributed an aggregate of 70.6%, 19.1% and 21.4% of the consolidated revenue from both discontinued and continuing operations for the three years ended August 31, 2021, 2022 and 2023, respectively. As of August 31, 2022, the VIEs accounted for an aggregate of 12.6% of the consolidated total assets, and 19.0% of the consolidated total liabilities. And as of August 31, 2023, the VIEs accounted for an aggregate of 12.0% of the consolidated total assets, and 18.7% and of the consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to BGY Education Investment (prior to deconsolidation on August 31, 2021) and the New VIEs. However, if BGY Education Investment and the New VIEs were ever to need financial support, the Group may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of BGY Education Investment, the New VIEs or entrustment loans to BGY Education Investment and the New VIEs. After the effectiveness of the Implementation Rules, the loans provided to BGY Education Investment and its subsidiaries and schools (if any) would then be accounted for as related party transactions. The Group believes that there are no assets held in the BGY Education Investment and the New VIEs that can be used only to settle obligations of BGY Education Investment and the New VIEs, except for registered capital and the PRC statutory reserves, in the respective periods. As the BGY Education Investment and the New VIEs is incorporated as a limited liability company under the PRC Company Law, creditors of the BGY Education Investment and the New VIEs do not have recourse to the general credit of the Company for any of the liabilities of the BGY Education Investment and the New VIEs in the respective periods. Relevant PRC laws and regulations restrict BGY Education Investment and the New VIEs in the respective periods from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 23 for disclosure of restricted net assets. (c) Deconsolidation Upon the occurrence of certain events and on a regular basis, the Group evaluates whether it no longer has a controlling interest in its subsidiaries, including consolidated variable interest entities. If the Company determines it no longer has a controlling interest, the subsidiary is deconsolidated. The Company records a gain or loss on deconsolidation based on the difference on the deconsolidation date between (i) the aggregate of (a) the fair value of any consideration received, (b) the fair value of any retained non-controlling investment in the former subsidiary and (c) the carrying amount of any non-controlling interest in the subsidiary being deconsolidated, less (ii) the carrying amount of the former subsidiary’s assets and liabilities. The Company assesses whether a deconsolidation is required to be presented as discontinued operations in its consolidated financial statements on the deconsolidation date. This assessment is based on whether or not the deconsolidation represents a strategic shift that has or will have a major effect on the Company’s operations or financial results. If the Company determines that a deconsolidation requires presentation as a discontinued operation on the deconsolidation date, or at any point during the one-year period following such date, it will present the former subsidiary as a discontinued operation in current and comparative period financial statements. (d) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include the consolidation and deconsolidation of variable interest entities, impairment assessment of indefinite lived intangible assets, goodwill and long-lived assets, assessment of realization of deferred tax assets and refund liabilities. Actual results may differ materially from those estimates. (e) Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of short-term financial instruments, which consist of cash and cash equivalents, restricted cash, accounts receivable, amounts due from related parties, other receivables, deposits, accounts payable, amounts due to related parties, short-term loans and other current liabilities that are recorded at cost, which approximate s (f) Foreign currency translation The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the affiliates incorporated outside of mainland China includes the United States dollar (“US dollar” or “US$”), Great Britain Pound (“GBP”), Hong Kong dollar (“HKD” or “HK$”), and Canadian dollar (“CAD”). The functional currency of all the other subsidiaries and the VIEs is RMB. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Exchange gains and losses are recognized in the consolidated statement of operation. All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rate. Any translation adjustments are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income. (g) Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents and restricted cash denominated in RMB amounted to RMB 468,184 and RMB 366,560 as of August 31, 2022 and 2023, respectively. (h) Convenience translation The Group’s reporting currency is RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the then current exchange rates, for the convenience of the readers. Translations of balances in the consolidated balance sheets, and the related consolidated statements of operations, comprehensive loss, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended August 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.2582 , (i) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash in banks and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. (j) Restricted cash The Group’s restricted cash mainly represents (a) deposits in connection with the short-term loan disclosed in Note 11 ; (b) (k) Long-term investments Long-term investments include equity securities without readily determinable fair values and equity method investments. ● Equity securities without readily determinable fair values The Group elects a practicability exception to fair value measurement for the equity securities without readily determinable fair values, under which these investments are measured at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer with fair value change recorded in the consolidated statements of operations. The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASU 2011-4: Fair Value Measurement (ASC 820). If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated statements of operations. ● Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in ordinary shares or in-substance ordinary shares, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%, and other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. For certain investment in the limited partnership, the Group’s influence over the partnership operating and financial policies is determined to be more than minor. Accordingly, the Group accounts for the investment as an equity method investment. Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into the consolidated statements of operations and accordingly adjusts the carrying amount of the investment. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that an OTTI has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investments. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. (l) Allowance for doubtful accounts Accounts receivable mainly represents amounts due from corporate customers of the Group’s various subsidiaries, and amounts due from students of the Group’s UK schools. The allowance for doubtful accounts is the Group’s best estimates of the amount of probable credit losses in the Group’s existing accounts receivable balance. The Group provides allowance for doubtful accounts based on historical credit loss experience and a review of the current status and reasonable and supportable forecasts of future events and economic conditions. Accounts receivable, restricted cash, other receivables and amounts due from related parties are presented net of allowance for doubtful accounts. (m) Inventories Inventories are stated at the lower of cost or net realizable value. (n) Property and equipment, net Property and equipment is generally stated at historical cost and depreciated on a straight-line basis over the estimated useful lives of the assets. Depreciation expense is included in either cost of revenue or selling, general and administrative expenses, as appropriate. Property and equipment consist of the following and depreciation is calculated on a straight-line basis over the following estimated useful lives: Buildings 20 - 50 years Leasehold improvement 3 - 20 years or the lesser of remaining life of lease Motor vehicles 4 - 10 years Electronic equipment 4 - 10 years Office equipment 3 - 5 years Furniture and other equipment 3 - 5 years Others 3 years Construction in progress * Note*: The Group constructs certain of its property. In addition to cost under the construction contracts, external costs, including consulting fee directly related to the construction of such facilities, are capitalized. Depreciation is recorded at the time assets are ready for the intended use. The Group assesses lands with indefinite life for impairment periodically. (o) Goodwill, net Goodwill represents the excess of the purchase consideration over the fair value of the identifiable net assets acquired in a business combination. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Aug. 31, 2023 | |
Discontinued Operations [Abstract] | |
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS As refer to Note 2(a), in connection with the deconsolidation of the Affected Entities, the Group evaluated and concluded that the Affected Entities should be accounted as discontinued operations during the year ended August 31, 2021. Reconciliation of the major classes of income and losses from discontinued operations in the consolidated statements of operations and comprehensive loss for the year ended August 31, 2021 is as follow: For the year ended 2021 RMB Revenue 2,303,339 Cost of revenue (1,315,026 ) Gross profit 988,313 Selling, general and administrative expenses (400,012 ) Other operating income 7,604 Operating income 595,905 Interest expense, net (695 ) Investment income 56,657 Other expenses (4,180 ) Income before income taxes and share of equity in loss of unconsolidated affiliate 647,687 Income tax expense (16,877 ) Share of equity in loss of unconsolidated affiliate (200 ) Net income (before one-off loss upon deconsolidation of the Affected Entities) 630,610 One-off loss upon deconsolidation of the Affected Entities, net of tax (261,267 ) Net income from discontinued operations 369,343 Summarized cash flow information for discontinued operations are as follows: Net cash provided by operating activities 516,873 Net cash provided by investing activities* 137,323 Net cash used in financing activities** (153,987 ) Note*: The amount of RMB 192,373 cash was redeemed from continuing operations for the year ended August 31, 2021. Note**: The amount of RMB 111,668 was repaid to continuing operations for the year ended August 31, 2021. |
Business Combination
Business Combination | 12 Months Ended |
Aug. 31, 2023 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | 4. BUSINESS COMBINATION Business combination in fiscal year 2021: On January 31, 2021, the Group acquired 60% equity interest of Jiangxi Leti Camp Education Technology Co., Ltd. (“Leti”) with a total consideration of approximately RMB 26,026, which will be paid in 3.25 years. The consideration is in the form of (1) contingent consideration payable to the non-controlling interest shareholder, which is subject to the achievement of the financial performance requirement, and (2) the future capital injection to Leti by the Group. The contingent consideration payable was recorded in amounts due to related parties and other non-current liability due to related parties (non-controlling interest shareholder of Leti) in the consolidated balance sheets. The goodwill, intangible assets and non-controlling interests acquired from the acquisition were approximately RMB 20,874, RMB 9,000 and RMB18,012, respectively. Leti provides outdoor camp services to students in PRC. For the year ended August 31, 2022, the Group paid the first installment of cash consideration RMB 7,500 according to the share purchase agreement. For the fiscal year 2023, Leti failed to meet the financial performance requirement agreed in the share purchase agreement and is expected not able to meet future financial performance requirement, the fair value of the contingent consideration payable to related parties (non-controlling interest shareholder of Leti) has reduced to RMB nil Pro forma result of acquisition (unaudited) The following table summarizes the unaudited pro forma consolidated results of operations for the year ended August 31, 2021, assuming that the acquisition occurred as of the beginning of the comparable annual reporting period. The pro forma results have been prepared for comparative purpose only based on management’s best estimate and do not purport to be indicative of the results of operations which actually would have resulted had the acquisition occurred as of the beginning of period: Pro forma for the year ended August 31, 2021 2021 Pro forma revenue from continuing operations 1,406,147 Pro forma operating income from continuing operations 390,843 Pro forma net loss attributable to the Group (53,253 ) |
Other Receivables, Deposits and
Other Receivables, Deposits and Other Assets | 12 Months Ended |
Aug. 31, 2023 | |
Other Receivables, Deposits and Other Assets [Abstract] | |
OTHER RECEIVABLES, DEPOSITS AND OTHER ASSETS | 5. OTHER RECEIVABLES, DEPOSITS AND OTHER ASSETS Other receivables, deposits and other assets consisted of the following: As of August 31, 2022 2023 RMB RMB Other receivables from third parties 7,334 6,496 Advances to employees 4,396 2,932 Deposits 11,949 17,140 Prepaid tax and deductible value-added tax-in 10,035 9,479 Rental prepayment (a) 28,003 23,392 Prepayment for suppliers 45,661 51,201 Receivables from disposal of property and equipment - 25,256 Others 7,061 13,740 114,439 149,636 Less: allowance for other receivables (1,677 ) (957 ) 112,762 148,679 (a) Rental prepayment represents the prepayment of rent related to leases less than 12 months. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Aug. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following: As of August 31, 2022 2023 RMB RMB Buildings 254,428 315,020 Leasehold improvement 336,450 376,071 Motor vehicles 1,839 2,982 Electronic equipment 58,425 63,000 Office equipment 125,630 141,750 Furniture and other equipment 60,017 54,689 Others 65,235 70,817 Less: accumulated depreciation (531,195 ) (619,715 ) Construction in progress 22,448 9,611 Property and equipment, net 393,277 414,225 For the years ended August 31, 2021, 2022 and 2023, depreciation expenses were RMB 188,831, RMB 98,120 and RMB 69,003 respectively, of which RMB 66,126 was related to discontinued operations for the year ended August 31, 2021. For the year ended August 31, 2022, the Group recorded impairment loss of RMB 6,586 related to the property and equipment within the Overseas Schools reportable segment, due to closure of certain schools. During the year ended August 31, 2023, the Group recorded RMB 12,891 impairment loss on the property and equipment within Leti, by which the carrying amount exceeded the expected future cash flows of the related leasehold improvements. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Aug. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
INTANGIBLE ASSETS, NET | 7. INTANGIBLE ASSETS, NET Intangible assets, net, consisted of the following: As of August 31, 2022 As of August 31, 2023 Cost Accumulated Accumulated Net Cost Accumulated Accumulated Net RMB RMB RMB RMB RMB RMB RMB RMB Indefinite lived intangible assets Brand names 366,070 - (113,385 ) 252,685 402,928 ** - (113,385 ) 289,543 Definite lived intangible assets Brand names 50,486 (21,148 ) - 29,338 50,486 (25,342 ) - 25,144 Trademarks 39,016 (14,226 ) - 24,790 39,016 (18,826 ) (1,569 ) 18,621 Non-compete agreements 29,800 (18,289 ) - 11,511 29,800 (22,423 ) (483 ) 6,894 Student bases 21,857 (18,946 ) - 2,911 21,857 (19,354 ) - 2,503 Others* 10,314 (8,653 ) - 1,661 10,314 (9,942 ) - 372 517,543 (81,262 ) (113,385 ) 322,896 554,401 (95,887 ) (115,437 ) 343,077 Note*: Others include core curriculum, software, backlog and license. Note**: The increase in cost of brand names in 2023 is resulted from the foreign exchange realignment. Amortization expenses for the intangible assets for the years ended August 31, 2021, 2022 and 2023 were RMB 30,781, RMB 17,814 and RMB 14,916 respectively, of which RMB 14,639 was related to discontinued operations for the year ended August 31, 2021. As of August 31, 2023, the estimated amortization expenses related to intangible assets for continuing operations for each of the next five years is expected to be RMB 13,708, RMB 11,410, RMB 8,096, RMB 5,461 and RMB 5,216, respectively, and RMB 9,643 thereafter. Based on the result of the Group’s annual impairment assessment on indefinite lived intangible assets performed as of August 31, 2022, it is determined that the carrying amounts of indefinite lived intangible assets brand names associated with the Overseas Schools reporting unit exceeded their fair values and, therefore, an impairment loss was recorded. The Group has determined that based on the underperformance of the Overseas Schools reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the relief-from-royalty method to estimate the fair value of indefinite lived intangible assets brand names. For the year ended August 31, 2022, the Group recorded RMB 113,385 of impairment loss on indefinite lived intangible assets. Based on the result of the Group’s annual impairment assessment on indefinite lived intangible assets performed as of August 31, 2023, the fair value of indefinite lived intangible assets brand names associated with the Overseas Schools reporting unit exceeded their carrying values, therefore, no impairment loss was recorded. In the Group’s 2023 annual indefinite lived intangible assets impairment assessment for the overseas schools brand names, the key assumptions used are a royalty rate of 3.5% (2022: 3.5%), a discount rate of 15.5% (2022: 15.5%), a terminal growth rate of 2.0% (2022: 2.3%) and forecast future revenue. In addition, for the year ended August 21, 2023, the Group recorded RMB 2,052 impairment loss on the definite lived intangible assets associated with Leti reporting unit. |
Long-Term Investments, Net
Long-Term Investments, Net | 12 Months Ended |
Aug. 31, 2023 | |
Long TermInvestments [Abstract] | |
LONG-TERM INVESTMENTS, NET | 8. LONG-TERM INVESTMENTS, NET Long-term investments, net, consisted of the following: As of August 31, 2022 2023 RMB RMB Equity method investments: Foshan Yingrui Gaoze Equity Investment Partnership (Limited Partnership) (“Gaoze Partnership”) (a) 3,338 3,338 Startcamp Education Technology Limited (“Startcamp”) (b) 8,211 7,872 BOTO Academic English Co., Ltd. (“BOTO”) (c) 1,464 - Other investments (d) 439 439 Equity securities without readily determinable fair value (e) 27,034 24,421 Total 40,486 36,070 (a) On June 1, 2020, Gaoze Partnership was established with the total committed capital of RMB 1,270,000. The Group participates in Gaoze Partnership as a limited partner, and invested RMB 42,000 and RMB 1,134 in fiscal year 2020 and 2021, respectively. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and owns 19.84% interest in Gaoze Partnership. The fair value of the underlying investment of Gaoze Partnership is estimated using discounted cash flow model. Loss of RMB 200, RMB 39,596 and RMB nil (b) The Group acquired 25% equity interest in Startcamp for total cash consideration of RMB 10,000 in the year ended August 31, 2019. The Group accounts for the investment under the equity method because the Group has the ability to exercise significant influence but does not have control over the investee. Loss of RMB 998, RMB 153 and RMB 339 were recorded for the years ended August 31, 2021, 2022 and 2023, respectively. (c) The Group holds 30% equity interest in BOTO through acquisition of Can-achieve Education Consultants Co., Ltd. and its subsidiaries (“Can-achieve Group”) in fiscal year 2018. The Group accounts for the investment under the equity method because the Group has the ability to exercise significant influence but does not have control over the investee. Loss of RMB 4 and RMB nil (d) The other investments include 46% equity interest in Beijing Cloud Apply Co., Ltd. and 50% equity interest in Sanli Foundation Education Limited . The Group accounts for these investments under the equity method because the Group has the ability to exercise significant influence but does not have control over the investees. During the year ended August 31, 2022, the Group redeemed its 50% equity interest in Sanli Foundation Education Limited by offsetting the consideration payable of RMB 251, which is equal to the investment cost. Loss of RMB 16, gain of RMB 43 and loss of RMB nil (e) The Group accounted for these equity investments using the measurement alternative when equity method is not applicable and there is no readily determinable fair value for the investments. During the year ended August 31, 2021, the Group acquired 18% equity interest in Shanghai Yurong Culture and Art Co., Ltd. (“Golden Ballet”) for a total cash consideration of RMB 21,951, and redeemed its 10% equity interest in Chengdu Qingjiao Education Technology Co., Ltd. with a total cash consideration of RMB 1,500, which is equal to the investment cost. During year ended August 31, 2022, the Group acquired 10% equity interest in Hurun Baixue (Shanghai) Industrial Co., Ltd for a total cash consideration RMB 5,000. No impairment loss was recorded during the years ended August 31, 2021 and 2022, respectively. During the year ended August 31, 2023, the Group recorded RMB 2,613 of impairment loss on the equity interest of Golden Ballet, representing the difference between the fair value of the investment and its carrying amount. |
Goodwill, Net
Goodwill, Net | 12 Months Ended |
Aug. 31, 2023 | |
Goodwill, Net [Line Items] | |
GOODWILL, NET | 9. GOODWILL, NET The following table summarizes the change in the carrying amount of goodwill by segment for the years ended August 31, 2022 and 2023: Overseas Schools Complementary Total RMB RMB RMB Balance as of August 31, 2021 1,220,965 729,221 1,950,186 Impairment (a) (419,805 ) — (419,805 ) Exchange realignment (96,465 ) — (96,465 ) Balance as of August 31, 2022 704,695 729,221 1,433,916 Impairment (b) — (207,830 ) (207,830 ) Exchange realignment 102,786 — 102,786 Balance as of August 31, 2023 807,481 521,391 1,328,872 Notes: (a) For each of the years ended August 31, 2021 and 2022, the Company performed impairment test of its goodwill. For the year ended August 31, 2021, the Group has determined that based on the underperformance of Elan reporting unit, market conditions and other factors including the adverse impacts from the regulations on after-school tutoring promulgated by the General Office of State Council and the General Office of Central Committee of the Communist Party of China in the fiscal year 2021, it was more likely than not that there were indications of impairment. Furthermore, the Group also has determined that based on the underperformance of the Chengdu Yinzhe reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Elan and Chengdu Yinzhe reporting unit exceeded their respective fair values. Accordingly, the Group recorded RMB 51,361 and RMB 33,369 as impairment loss on goodwill of Elan and Chengdu Yinzhe on the consolidated statement of operations for the year ended August 31, 2021, respectively. The impairment is recorded in complementary education services reportable segment. Based on the results of the Group’s annual goodwill impairment assessment performed as of August 31, 2022 for all of reporting units, it is determined that the carrying amounts of the Group’s goodwill reporting units did not exceed their respective fair values and, therefore, no impairment existed, except for the Overseas Schools reporting unit. The Group has determined that based on the underperformance of the Overseas Schools reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of the Overseas Schools reporting unit exceeded its fair value. Accordingly, the Group recorded RMB 419,805 as impairment loss on goodwill on the consolidated statement of operations for the year ended August 31, 2022. The impairment is recorded in Overseas Schools reportable segment. (b) For the year ended August 31, 2023, the Group performed impairment test of its goodwill. The Group has determined that based on the underperformance, the market conditions and other factors, it was more likely than not that there were indications of impairment for Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units exceeded their respective fair value. Accordingly, the Group recorded RMB 116,755, RMB 39,840, RMB 30,361 and RMB 20,874 as impairment loss on goodwill of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units on the consolidated statement of operations for the year ended August 31, 2023, respectively. The key assumptions used in the annual goodwill impairment assessment for these reporting units are a discount rate of 17.5% (Can-achieve); 18.0% (Chengdu Yinzhe); 16.5% (Hangzhou Impression); 25.0% (Leti); a terminal growth rate of 2.0% (Can-achieve); 2.0% (Chengdu Yinzhe); 2.0% (Hangzhou Impression); 2.0% (Leti); and forecasts future revenues. The impairment is recorded in complementary education services reportable segment. Furthermore, based on the result of the Group’s annual goodwill impairment performed as of August 31, 2023, it is determined that the carrying amount of the Overseas Schools reporting unit did not exceed its fair value, therefore, no impairment loss was recorded. In the Group’s 2023 annual goodwill impairment assessment for the Overseas Schools reporting unit, the key assumptions used are a discount rate of 15.0% (2022: 15.0%), a terminal growth rate of 2.0% (2022: 2.3%) and forecast future revenue. (c) The carrying amount of goodwill included RMB 504,535 and RMB 712,365 of accumulated impairments as of August 31, 2022 and 2023, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Aug. 31, 2023 | |
Accrued expenses and other current liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of August 31, 2022 2023 RMB RMB Payroll and related benefits 75,750 99,184 Temporary receipt from students 51,555 12,031 Deposits received 34,940 43,687 Other tax payable 17,574 4,992 Professional fee 13,297 30,991 Commission fee 8,257 10,570 Accrual rental expense 3,561 4,209 Accrual utilities expenses 6,583 8,493 Accrual other expenses 46,478 38,243 Others 4,495 27,290 Total 262,490 279,690 |
Short-Term and Long-Term Loans
Short-Term and Long-Term Loans | 12 Months Ended |
Aug. 31, 2023 | |
Short-Term and Long-Term Loans [Abstract] | |
SHORT-TERM AND LONG-TERM LOANS | 11. SHORT-TERM AND LONG-TERM LOANS In July 2022, the Group entered into a senior secured term loan facility agreement with China Merchants Bank Co., Ltd., New York Branch in an aggregate principal amount of up to GBP 19,480 (approximately RMB 156,300). The interest is at a rate per annum equal to the Sterling Overnight Interbank Average Rate for the applicable interest period plus the spread, which is defined as 1.40% per annum for any loan for any applicable interest period. As of August 31, 2022, the Group drew down principal amount of GBP 18,600 (approximately RMB 149,239) with a maturity date of July 10, 2023. The loan is guaranteed by Bright Scholar Education Holdings Limited and is intended for general working capital purposes. As of August 31, 2022, the loan facility is secured by a bank deposit pledge of RMB 180,000, which is recorded as restricted cash on the consolidated balance sheet as of August 31, 2022. The loan has been fully repaid on its maturity date during the year ended August 31, 2023. In April 2020, one of the Canadian subsidiaries of the Group received an interest free loan amounted to CAD 80 from the government of Canada under the program named “Canada Emergency Business Account” (“CEBA”) due on or before December 31, 2022. The program intends to help cover the small businesses’ operating costs during a period where the revenue has been temporarily reduced due to the economic impacts of the COVID-19. In the fiscal year 2021, the Canadian subsidiary received additional CAD 40 interest free loan under the same grogram, which is also due on or before December 31, 2022. Further in fiscal year 2022, the CEBA program has been updated and the repayment date of the interest free loan is extended to be due on or before December 31, 2023. As of August 31, 2022, the total amount of interest free loan was CAD 120 (approximately RMB 633). The loan has been fully repaid on December 22, 2022. |
Leases
Leases | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
LEASES | 12. LEASES The Group has operating leases mainly for campuses, office space and learning centers, the lease term ranges from less than 12 months to 28 years. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Group does not have options to extend or terminate leases, as the renewals or terminations of these leases are on negotiation basis. None of these leases contain material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to the leases re as follows: As of August 31, 2022 2023 RMB RMB ROU assets 1,453,833 1,549,447 Operating lease liabilities – current 104,515 125,447 Operating lease liabilities – non current 1,439,239 1,523,242 Weighted-average remaining lease term 13.45 12.81 Weight-average discount rate 4.17 % 4.14 % The components of lease costs of these operating leases from continuing operations are as follow: For the year ended 2022 2023 RMB RMB Operating lease cost for fixed payments 187,653 160,986 Short - term lease costs 8,414 5,869 Variable lease costs 2,324 13,320 Total lease costs 198,391 180,175 Supplemental cash flow information related to the operating leases is as follows: For the year ended 2022 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases 182,205 167,987 The following table provides the maturities of the operating lease liabilities as of August 31, 2023: Operating leases Fiscal year ending August 2024 191,105 August 2025 177,214 August 2026 171,639 August 2027 156,129 August 2028 148,018 August 2029 and thereafter 1,277,410 Total future undiscounted lease payments 2,121,515 Less: imputed interest 472,826 Total present value of operating lease liabilities 1,648,689 Impairment loss on operating lease right-of-use assets The Group tests its long-lived assets for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. As a result of the adverse impacts of the COVID-19 pandemic on the economic environment and change in the Group’s business strategy, the Group determines to close certain language training centers in the US resulting in four idled operating leases. The Group determines the fair value of the ROU assets based on the discounted value of estimated future cash flows from subleases, if any. For the years ended August 31, 2021, 2022 and 2023, the Group recorded impairment loss of RMB 15,575, RMB 8,861 and RMB nil |
Share Capital
Share Capital | 12 Months Ended |
Aug. 31, 2023 | |
Share Capital [Abstract] | |
SHARE CAPITAL | 13. SHARE CAPITAL Holders of Class A Ordinary Shares and Class B Ordinary Shares are entitled to the same rights except for voting and conversion rights. In respect of matters requiring a shareholder’s vote, each Class A Ordinary Share is entitled to one vote and each Class B Ordinary Share is entitled to 20 votes. Class B Ordinary Shares are convertible at any time by the holder thereof into Class A Ordinary Shares on a one-for-one basis. The Company was incorporated on December 16, 2016. As of the incorporation date, the total issued share capital of the Company was USD 0.0001 consisting of 10 ordinary shares with a par value of USD 0.00001 and total authorized share capital was USD 50 divided into 5,000,000,000 shares. The Company completed a follow-on public offering of American Depositary Shares (“ADSs”) priced at US$19.00 per ADS on March 2, 2018. The Company issued and sold 10,000,000 ADSs, each representing one Class A Ordinary Share of the Company. In September 2019, the Board of Directors approved a US$30,000 share repurchase program (the “2019 Repurchase Program”). Under the 2019 Repurchase Program, the Group repurchased 1,096,312 shares during the year ended August 31, 2020 with a cost of USD 8,721 (approximately RMB 56,058). For the year ended August 31, 2020, the Board of Directors approved and the Company completed the cancellation and retirement of 569,732 shares that were repurchased. In November 2020, the Board of Directors approved a US$50,000 share repurchase program (the “2020 Repurchase Program”). Under the 2020 Repurchase Program, the Group repurchased 560,436 shares and 258,731 shares during the years ended August 31, 2021 and 2022, respectively with a cost of US$ 3,075 (approximately RMB 24,628) and US$ 1,530 (approximately RMB 9,245), respectively. For the years ended August 31, 2021 and 2022, the Board of Directors approved and the Company completed the cancellation and retirement of 1,058,389 shares and 287,358 shares that were repurchased respectively. In August 2022, the Company changed the ratio of its ADSs to its Class A Ordinary Shares (the “ADS Ratio”), par value US$0.00001 per share, from the previous ADS Ratio of one ADS to one Class A Ordinary Share to the current ADS Ratio of one ADS to four Class A Ordinary Shares, effective on August 19, 2022. For the year ended August 31, 2023, there is no share repurchased by the Company. |
Revenue
Revenue | 12 Months Ended |
Aug. 31, 2023 | |
Revenue [Abstract] | |
REVENUE | 14. REVENUE Continuing operations The Group provides domestic kindergartens education program and international education program oversea. Overseas business includes arts programs, language programs and university foundation programs. The Group’s revenue includes tuition income from education programs, meal income, boarding income, commission income, study-abroad and career consulting service income, camp service and other education services related revenue. Revenue for the years ended August 31, 2021, 2022 and 2023 were primarily generated in the PRC, Hong Kong, Canada, the UK and US. Please refer to Note 21 for disaggregation of revenue by geographical areas. The Group recognized majority of its revenue over time and have insignificant amount of revenue recognized at a point in time. (a) Disaggregation of revenue For the year ended August 31, 2021 2022 2023 RMB RMB RMB Tuition income from education programs 343,468 405,990 477,909 Tuition income from complementary training courses 229,011 286,891 331,805 Meal income from education service 259,190 358,643 359,971 Boarding income from education service 88,600 145,077 290,812 Commission income 119,565 148,154 200,169 Consulting service income 113,426 125,365 173,283 Operation service income - 59,702 41,824 Camp service income 29,225 26,355 83,599 Other revenues 225,653 161,560 169,808 Less: sales tax 6,358 3,772 5,429 Total 1,401,780 1,713,965 2,123,751 (b) Contract balances As of August 31, 2022 2023 RMB RMB Accounts receivable, net of allowance 18,084 19,209 Contract liabilities - Current 516,731 541,683 Non-current contract liabilities 2,203 2,116 Refund liabilities 20,517 17,572 Contract liabilities principally relate to customer advances received prior to performance of services. Substantially all contract liabilities at the beginning of the year ended August 31, 2023 were recognized as revenue during the year ended August 31, 2023 and substantial all contract liabilities as of August 31, 2023 are expected to be realized in the following year. Refund liabilities mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the course. Refund liabilities estimates are based on historical refund ratio on a portfolio basis using the expected value method. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Aug. 31, 2023 | |
Share-Based Compensation [Abstract] | |
SHARE-BASED COMPENSATION | 15. SHARE-BASED COMPENSATION Share incentive plan On December 15, 2017, the Company adopted the Bright Scholar Education Holdings Limited 2017 Share Incentive Plan (the “2017 Plan”). There were no additional share incentive plan adopted during the years ended August 31, 2021, 2022 and 2023. For the year ended August 31, 2023, the share options movement were as follows: Number of Weighted Weighted average Weighted average Aggregate US$ US$ US$ As of August 31, 2022 684,574 8.74 5.29 10.92 - Granted — — — Forfeited/Cancelled (28,449 ) 8.74 4.29 Outstanding as of August 31, 2023 656,125 8.74 4.29 11.08 - Vested and exercisable as of August 31, 2023 656,125 8.74 4.29 11.08 - For the years ended August 31, 2021, 2022 and 2023, the Group recognized share-based payment expenses of RMB 1,865, RMB (816) and RMB nil The total compensation expense is recognized on a straight-line basis over the respective vesting periods. As of August 31, 2021, 2022 and 2023, there were RMB 748, RMB nil nil |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSE | 16. INCOME TAX EXPENSE Continuing operations Income tax expense consisted of the following: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Current income tax expense: PRC 113,045 64,352 56,432 Hong Kong 23,665 29,923 20,926 US 2,633 2,455 450 Canada - 44 - Deferred income tax (benefit) expense: PRC (2,716 ) (3,749 ) 17,318 Canada (49 ) 67 (261 ) US - (28 ) 8,050 UK (42,402 ) (34,145 ) 83,003 Total income tax expense: 94,176 58,919 185,918 Cayman Islands The Company and Impetus are incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company and Impetus are not subject to income or capital gains taxes. In addition, dividend payments are not subject to withholdings tax in the Cayman Islands. US Can-achieve Global Education, Inc. (Los Angeles), Cambridge Education Group Holding Inc. (US) and its subsidiaries are located in US and are subject to an income tax rate of 21% for taxable income earned in the US. UK Prior to April 1, 2023, the Company’s subsidiaries operating in UK were subjected to income tax rate at 19%. Form April 1, 2023, the income tax rate for the Company’s subsidiaries operating in UK changed to 25%. Canada Can-Achieve International Education Limited (Vancouver) operating in Vancouver and Can-Achieve Academy Limited operating in Toronto are subject to income tax rate ranging from 26% to 26.5% according to the province tax rates. Hong Kong The Group’s subsidiaries operating in Hong Kong are subject to a two-tiered income tax rate for taxable income earned in Hong Kong effectively since April 1, 2018. The first 2 million Hong Kong dollars of profits earned by a company are subject to be taxed at an income tax rate of 8.25%, while the remaining profits will continue to be taxed at the existing tax rate of 16.5%. PRC The subsidiaries and VIEs incorporated in the PRC were generally subject to a corporate income tax rate of 25%. Effective from January 1, 2008, a new Enterprise Income Tax Law, or (“the New EIT Law”), consolidated the previous income tax laws for foreign invested and domestic invested enterprises in the PRC by the adoption a unified tax rate of 25% for most enterprises with the following exceptions. Zhuhai Bright Scholar is a company registered in Hengqin New Area whose main business, providing outsourcing consulting services, falls within the preferential enterprise income tax (“EIT”) catalogue of Hengqin New Area in Zhuhai and whose revenue derived from its main business accounts for more than 60% of its total revenue. Zhuhai Bright Scholar was classified as a domestically-owned enterprise in Hengqin New Area, Zhuhai in an encouraged industry sector, and was approved by the PRC tax authorities to enjoy a preferential EIT rate of 15% from January 24, 2017 (date of incorporation). Zhuhai Bright Scholar met the relevant requirements and was eligible for the preferential EIT rate on or before August 31, 2022. Due to the failure to meet the abovementioned 60% requirement, Zhuhai Bright Scholar adopted to the EIT rate of 25% during the year ended August 31, 2023. Chengdu Laizhe Education and Technology Co., Ltd. established in the western development area of the PRC was subject to preferential tax rate of 15% of taxable profit for the years ended August 31, 2021, 2022 and 2023. Chengdu Zhimeng Business Information Consulting Co., Ltd. also established in the western development area of the PRC is subject to preferential tax rate of 15% of taxable profit in calendar year 2023. Entities qualified as Software Enterprises (“SEs”) enjoy EIT exemption for two years starting from its first profitable calendar year, followed by a 50% reduction for the subsequent three calendar years. Chengdu Zhi Yi Meng Software Technology Co., Ltd. was qualified as SEs and enjoyed the zero preferential tax rate in calendar year 2019 and 2020, and was subject to 50% reduction of EIT at 12.5% preferential tax rate in calendar year 2021, 2022 and 2023. Further, according to Caishui [2019]13 No.2, certain subsidiaries in the PRC qualified as “small-scaled minimal profit enterprise”. The first RMB 1,000 of taxable income earned by a qualified company is subject to preferential income tax rate of 5%, while the remaining profits will be subject to income tax rate of 10%, in calendar year 2020. According to Announcement [2021] No.12 from the Ministry of Finance and the State Administration of Taxation (“MOF&SAT”), these PRC subsidiaries are subject to preferential income tax rate of 2.5% and 10% for the first RMB 1,000 of taxable income and remaining profit respectively, in calendar year 2021. While according to Announcement [2022] No.13 from the MOF&SAT subsequently issued, the applicable preferential income tax rate is 2.5% and 5% for the first RMB 1,000 of taxable income and remaining profit respectively, in calendar year 2022. According to Announcement [2023] No.6 from the MOF&SAT subsequently issued, these PRC subsidiaries are subject to preferential income tax rate of 5% for the taxable income in calendar year 2023.There are numbers of PRC subsidiaries with minimum taxable income, as such, are subject to preferential income tax rate of 5%. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Group’s deferred tax assets and liabilities were as follows: As of August 31, 2022 2023 RMB RMB Deferred tax assets: Net operating loss carry-forward 184,081 201,482 Less: valuation allowance (98,978 ) (199,672 ) Total deferred tax assets 85,103 1,810 Deferred tax liabilities: Intangible assets 21,707 21,893 Withholding tax - 20,200 Total deferred tax liabilities 21,707 42,093 Movement in valuation allowance is as follows: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Beginning balance 61,448 98,081 98,978 Additions from acquisition 2,070 - - Additions 46,488 14,442 181,280 Decrease from disposal of subsidiaries - - (8,244 ) Reversal (11,789 ) (13,293 ) (41,141 ) Expired (136 ) (252 ) (31,201 ) Ending balance 98,081 98,978 199,672 As of August 31, 2021, 2022 and 2023, the tax loss carry-forward in the PRC amounted to RMB 396,192, RMB 399,660 and RMB 288,316 respectively, which would expire by the end of calendar year 2026, 2027 and 2028. The Group operates its business through its subsidiaries and VIEs. The Group does not file consolidated tax returns, therefore, losses from individual subsidiaries or the VIEs may not be used to offset other subsidiaries’ or VIEs’ earnings within the Group. Valuation allowance is considered on each individual subsidiary and VIE basis. A valuation allowance of RMB 98,081, RMB 98,978 and RMB 199,672 had been established as of August 31, 2021, 2022 and 2023, respectively, in respect of certain deferred tax assets as it is considered more likely than not that the relevant deferred tax assets will not be realized in the foreseeable future. For the year ended August 31, 2023, the Group recognized a full valuation allowance amounting to approximately RMB 128,781 against its Overseas Schools’ deferred tax assets. This determination was based on the assessment of the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred by Overseas Schools for the recent three years. The presence of a three-year cumulative loss limits the ability to consider other objective evidence, such as the Group’s expectations of future taxable income and projections for growth of Overseas Schools. The total deferred tax assets of RMB 85,103 and RMB 1,810 as of August 31, 2022 and 2023, was mainly attributed to the deductible tax losses carry-forward arising from Overseas Schools, and certain overseas and RPC subsidiaries, respectively. A deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amounts, including those differences attributable to a more than 50% interest in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Company has not recorded any such deferred tax liability attributable to the undistributed earnings of its financial interest in VIEs because it believes such excess earnings can be distributed in a manner that is considered to be indefinitely reinvested and thus would not be subject to income tax. The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group has concluded that there are no significant uncertain tax positions requiring recognition in consolidated financial statements for the years ended August 31, 2021, 2022 and 2023. The Group did not incur any interest and penalties related to potential underpaid income tax expenses and also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months. The Group has no material unrecognized tax benefits which would favorably affect the effective income tax rate in future periods. According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB 0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. From inception to 2023, the Group is subject to examination of the PRC tax authorities. Reconciliation between the provision for income taxes computed by applying the PRC EIT rates of 25% in year 2021, 2022 and 2023 to income before income taxes and the actual provision for income tax were as follows: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Net loss before provision for income tax after elimination adjustment (439,952 ) (604,871 ) (200,566 ) PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate (109,988 ) (151,218 ) (50,142 ) Effect of intercompany transactions between continuing and discontinued operations 154,947 - - Effect of expenses that are not deductible in determining taxable profit* 66,668 180,404 107,020 Unrecognized tax losses 46,488 14,442 181,280 Utilization of tax losses previously not recognized (11,789 ) (13,293 ) (41,141 ) Effect of tax rate difference from tax holiday and statutory rate in other jurisdictions (51,815 ) 7,604 (36,275 ) Withholding tax expense** - 25,000 20,200 Impact of change in tax rate in UK - - 2,797 Others (335 ) (4,020 ) 2,179 Income tax expense recognized in profit or loss 94,176 58,919 185,918 Note*: Included in the expenses that are not deductible in determining taxable profit were primarily related to impairment loss, share based compensation and non-deductible expenses arose from Overseas Schools. Note**: The Enterprise Income Tax Law and its implementation rules also impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends receivable by non-PRC-resident enterprises from PRC-resident enterprises in respect of earnings accumulated beginning on January 1, 2008. As of August 31, 2022, the Group has recorded RMB 25,000 for dividend withholding tax related to the distributed earnings of Zhuhai Bright Scholar to its immediate holding company Time Education China Holdings Limited located in Hong Kong. As of August 31, 2023, the Group expects to distribute a portion of the earnings (RMB 202,000) of Zhuhai Bright Scholar to Time Education China Holdings Limited, and hence accrued a withholding tax of RMB 20,200 at the year end. The remaining undistributed earnings of the Company’s PRC subsidiaries are intended to be permanently reinvested, and accordingly, no deferred tax liabilities have been provided for the PRC dividend withholding taxes that would be payable upon the distribution of those amounts to the Company. If the tax holidays granted to certain schools and entities of the Group were not available, the Group’s income tax expense would have increased by RMB 66,742, RMB 12,397 and RMB 8,093 for the years ended August 31, 2021, 2022 and 2023, respectively. The basic net earnings or loss per share attributable to the Company would decrease in earning or increase in loss by RMB 0.56, RMB 0.10 and RMB 0.07 for the years ended August 31, 2021, 2022 and 2023, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Aug. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | 17. EARNINGS (LOSS) PER SHARE For the year ended August 31, 2021 2022 2023 RMB RMB RMB Numerator used in basic and diluted earnings/(loss) per share: Net loss attributable to Bright Scholar Education Holdings Limited from continuing operations (540,768 ) (709,340 ) (395,134 ) Net income attributable to Bright Scholar Education Holdings Limited from discontinued operations 487,963 - - Net loss attributable to Bright Scholar Education Holdings Limited shareholders (52,805 ) (709,340 ) (395,134 ) Shares (denominator): Weighted average ordinary shares outstanding used in calculating earnings/(loss) per share—basic and diluted 119,220,331 118,697,495 118,669,795 Net earnings/(loss) per share attributable to ordinary shareholders — basic and diluted: Net loss from continuing operations attributable to ordinary shareholders (4.54 ) (5.98 ) (3.33 ) Net income from discontinued operations attributable to ordinary shareholders 4.09 - - Net loss attributable to Bright Scholar Education Holdings Limited shareholders (0.45 ) (5.98 ) (3.33 ) As of August 31, 2021, 2022 and 2023, there were 759,525, 684,574 and 656,125 employee share options or non-vested ordinary shares excluded from the computation of diluted net earnings/(loss) per share in the periods presented, as their inclusion would have been anti-dilutive for the years presented. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS The table below sets forth the major related parties and their relationships with the Group: Name of related parties Relationship with the group Foshan Shunde Country Garden Property Development Co., Ltd. Entities controlled by Ms. Huiyan Yang (“Ms. H”)* Huidong Country Garden Real Estate Development Co., Ltd. Entities controlled by Ms. H* Guangdong Phoenix Holiday International Travel Service Co., Ltd. Entities controlled by Ms. H* Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. Entities controlled by Ms. H* Guangdong Teng An Mechanics and Electrics Engineering Co., Ltd. Entities controlled by Ms. H* Guangdong Chengjia Design Co., Ltd. Entities controlled by Ms. H* Guangdong Elite Architectural Co., Ltd. Entities controlled by Ms. H* Guangdong Biyouwei Catering Co., Ltd. Entities controlled by Ms. H* Kaiping Country Garden Property Development Co., Ltd. Entities controlled by Ms. H* Chuzhou Country Garden Property Development Co., Ltd. Entities controlled by Ms. H* Dongguan World Expo Xintiandi Property Investment Co., Ltd. Entities controlled by Ms. H* Shaoguan Shunhong Real Estate Development Co., Ltd. Entities controlled by Ms. H* Fine Nation Group Limited Entities controlled by the immediate family of Ms. H* Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. Non-controlling interest shareholder of a subsidiary of the Group Name of Affected Entities BGY Education Investment and its affiliates** Entities controlled by Ms. Meirong Yang, the shareholder of the Group Phoenix City Bilingual Kindergarten and other non-for-profit Kindergartens** Entities controlled by Ms. Meirong Yang, the shareholder of the Group Note*: Ms. H served as the chairperson for the year ended August 31, 2021 and 2022.The Board has accepted Ms. H’s resignation and appointed Mr. Hongru Zhou as the chairman of the Board on November 29, 2022, the appointment is effective on November 30, 2022. Note**: These entities were deconsolidated on August 31, 2021 due to the effectiveness of the Implementation Rules stated in Note 2(a), and became the related parties of the Group since September 1, 2021. The Group entered into the following transactions with its related parties: The Group has purchased services and materials from related parties at negotiated prices for a total amount of RMB 13,863 for the year ended August 31, 2021, of which RMB 7,610 was related to discontinued operations for the year ended August 31, 2021. Details of related party transactions in continuing operations for the years ended August 31, 2021, 2022 and 2023 are as follows: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Purchases of services and materials provided by other entities controlled by Ms. H are as below Foshan Shunde Country Garden Property Development Co., Ltd. 1,328 4,456 4,254 Huidong Country Garden Real Estate Development Co., Ltd. 2,969 1,623 7,050 Guangdong Phoenix Holiday International Travel Service Co., Ltd. - - 237 Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. 380 - - Dongguan World Expo Xintiandi Property Investment Co., Ltd. - - 3,560 Others 1,576 2,751 2,649 Total 6,253 8,830 17,750 The Group has received construction services from related parties at negotiated prices for a total amount of RMB 1,427 for the year ended August 31, 2021, of which RMB 144 was related to discontinued operations for the year ended August 31, 2021. Details of related party transactions in continuing operations for the years ended August 31, 2021, 2022 and 2023 are as follows: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Construction services provided by other entities controlled by the Ms. H are as below Guangdong Teng An Mechanics and Electrics Engineering Co., Ltd. 603 - - Guangdong Chengjia Design Co., Ltd. 680 339 133 Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. - 1,910 - Others - 3 - Total 1,283 2,252 133 The Group has paid interest expense to related parties at negotiated prices for a total amount of RMB nil nil For the year ended August 31, 2021 2022 2023 RMB RMB RMB Interest expense paid to the related parties are as below Fine Nation Group Limited (1) - 6,946 - BGY Education Investment (2) - 4,172 - Total - 11,118 - (1) On July 22, 2022, the Group issued a Promissory Note (the “Note”) to Fine Nation Group Limited with a principal amount of USD 130,000 (approximately RMB 877,487) at an interest rate of 7.45% per annum. As of August 31, 2022, the Note had been fully offset with the Group’s short-term investments in accordance to the agreement among the Group, Fine Nation Group Limited and the investment management institution. (2) On July 12, 2022, the Group borrowed a short term loan from BGY Education Investment amounting to RMB 480,000 at an interest rate of 7.45% per annum, which had been fully paid as of August 31, 2022. The Group has disposed property and equipment at negotiated price to related parties for a total amount of RMB nil nil For the year ended August 31, 2021 2022 2023 RMB RMB RMB Property and equipment disposed to the related parties are as below BGY Education Investment (1) - 57,998 - (1) On February 28, 2022, the Group has disposed of property and equipment to BGY Education Investment in total consideration of RMB 57,998, which is equal to the carrying amount of theses property and equipment as of the transaction date. The Group provided services at negotiated price to related parties for a total amount of RMB 4,745 for the year ended August 31, 2021, of which RMB 508 was related to discontinued operations for the year ended August 31, 2021. Details of related party transactions in continuing operations for the years ended August 31, 2021, 2022 and 2023 are as follows: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Services provided to other entities controlled by Ms. H are as below Phoenix City Bilingual Kindergarten and other non-for-profit Kindergartens (1) - 53,197 26,434 Kaiping Country Garden Property Development Co., Ltd. 1,013 - - Guangdong Biyouwei Catering Co., Ltd. 755 97 - Foshan Shunde Country Garden Property Development Co., Ltd. 424 - - Others 650 - - Total 2,842 53,294 26,434 (1) The amount represented the management fees charged for the provision of services to the Phoenix City Bilingual Kindergarten and other non-for-profit kindergartens. During the fiscal year 2022 and 2023, other than the services above, the Group provided various types of services to keep the Affected Entities open without entering into any service contract. Services provided to the Affected Entities include marketing and consulting, procurement support, human resources, finance and legal support, and information technology support, all of which were conducted through the centralized management system in the Group’s headquarters. The Group does not expect to be entitled to any compensation in exchange for those services, and therefore does not recognize relevant revenues. This centralized management system provided services to the Affected Entities without charges together with other kindergartens that the Group charged services fee for. As the Group did not track the costs incurred by the services center separately among different service recipients, and majority of the costs are staff costs incurred by the service centers, there are significant limitations for the Group to accurately determine the costs attributable to providing services to the Affected Entities. As a result, such costs related to services provided to the Affected Entities are not disclosed. However, in May and June 2023, the related staff had transferred out from the services center in the Group’s headquarters and the Group ceased to provide such free services. The following table presents amounts owed from and to related parties as of August 31, 2022 and 2023: As of August 31, 2022 2023 RMB RMB Amounts due from related parties BGY Education Investment and its affiliates (1) 185,366 190,404 Shaoguan Shunhong Real Estate Development Co., Ltd. (2) 10,000 10,000 Kaiping Country Garden Property Development Co., Ltd. (3) 1,060 1,060 Others 772 380 Less: allowance for Amounts due from related parties (572 ) (13,399 ) Total 196,626 188,445 Amounts due from related parties are non-interest bearing, unsecured, and due on demand. (1) The amounts mainly represent the acquisition payable paid on behalf of BGY Education Investment and its affiliates, and the receivables from disposal of property and equipment to BGY Education investment. (2) The amounts represent the expense paid on behalf of Shaoguan Shunhong Real Estate Development Co., Ltd.. For the year ended August 31, 2023, the Group provided a full allowance for it. (3) The amounts mainly represent the receivables of providing consulting services on pre-opening schools to Kaiping Country Garden Property Development Co., Ltd.. For the year ended August 31, 2023, the Group provided a full allowance for it. As of August 31, 2022 2023 RMB RMB Amounts due to related parties BGY Education Investment and its affiliates (1) 307,587 265,745 Chuzhou Country Garden Property Development Co., Ltd. (2) 30,769 30,769 Huidong Country Garden Real Estate Development Co., Ltd. (3) 1,833 7,713 Others 2,843 7,224 Total 343,032 311,451 Amounts due to related parties are non-interest bearing, unsecured, and payable on demand. As of August 31, 2022 2023 RMB RMB Other non-current liabilities due to related parties Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. (4) 11,197 - Total 11,197 - Other non-current liabilities due to related parties are non-interest bearing and unsecured. (1) The amounts mainly represent the acquisition payables to BGY Education Investment and its affiliates for the acquisition of certain PRC subsidiaries under common control in fiscal year 2021. (2) The amounts mainly represent financing funds from other entities controlled by Ms. H, for the purpose of maintaining daily operation of certain schools. (3) The amounts represent the rental payables to Huidong Country Garden Property Development Co., Ltd. for certain short-term leases. (4) The amounts represent the acquisition payables to Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. for the acquisition of Leti in fiscal year 2021 (Note 4). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Capital commitments As of August 31, 2022 and 2023, future minimum capital commitments under non-cancelable contracts were as follows: As of August 31, 2022 2023 RMB RMB Capital commitment for construction of schools 10,764 4,610 Capital commitment for an equity method investment 208,866 208,866 Total 219,630 213,476 Contingent liabilities The Group has been named in a number of lawsuits arising in its ordinary course of business. Although the outcome of those lawsuits are uncertain, the Group does not believe the possibility of a material loss is probable. |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Aug. 31, 2023 | |
Non controlling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | 20. NON-CONTROLLING INTERESTS The following table summarizes the changes in non-controlling interests from August 31, 2020 through August 31, 2023. Can-achieve Xinqiao Group Chengdu Yinzhe Wuhan Sannew Hangzhou Impression Linstitute Others Total RMB RMB RMB RMB RMB RMB RMB RMB Balance at August 31, 2020 121,870 34,039 74,435 72,994 27,138 28,573 27,402 386,451 Capital injection from non-controlling interest shareholders — — — — — — 1,370 1,370 Income/(loss) attributable to non-controlling interests 277 (34,039 ) 77 (72,994 ) (916 ) 8,730 (14,133 ) (112,998 ) Foreign currency translation 66 — — — — — (175 ) (109 ) Acquisition of a subsidiary (Note 4) — — — — — — 18,012 18,012 Acquisition of additional interest in a subsidiary of non-controlling interests* — — (14,980 ) — — — — (14,980 ) Distribution of dividends to non-controlling interest shareholders (14,330 ) — — — (1,053 ) (2,314 ) — (17,697 ) Balance at August 31, 2021 107,883 — 59,532 — 25,169 34,989 32,476 260,049 Capital injection from non-controlling interest shareholders — — — — — — 6,160 6,160 (Loss)/income attributable to non-controlling interests (351 ) — 2,694 — 183 7,099 (3,822 ) 5,803 Foreign currency translation 83 — — — — — — 83 Acquisition of additional interest in a subsidiary of non-controlling interests* — — (12,183 ) — — — (6,798 ) (18,981 ) Distribution of dividends to non-controlling interest shareholders — — (12,522 ) — (1,451 ) (8,802 ) (4,698 ) (27,473 ) Balance at August 31, 2022 107,615 — 37,521 — 23,901 33,286 23,318 225,641 Capital injection from non-controlling interest shareholders 5 — — — — — 760 765 Income/(loss) attributable to non-controlling interests 915 — 2,213 — 384 10,104 (5,305 ) 8,311 Foreign currency translation (54 ) — — — — — — (54 ) Disposal of a subsidiary to an entity under common control — — — — — — 2,181 2,181 Acquisition of additional interest in a subsidiary of non-controlling interests* — — (12,895 ) — — (6,991 ) — (19,886 ) Distribution of dividends to non-controlling interest shareholders (26,177 ) — (9,721 ) — (1,926 ) (15,475 ) (5,005 ) (58,304 ) Exemption for future capital injection — — — — — — (3,607 ) (3,607 ) Balance at August 31, 2023 82,304 — 17,118 — 22,359 20,924 12,342 155,047 Note*: During the year ended August 31, 2021, the Company acquired additional 5% of equity interests in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 16,670. The net carrying amount of the acquired non-controlling interests was RMB 14,980 and the difference of RMB 1,690 was charged to additional paid in capital of the Company accordingly. During the year ended August 31, 2022, the Company further acquired additional 5% of equity interests in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 12,708. The net carrying amount of the acquired non-controlling interests was RMB 12,183 and the difference of RMB 525 was charged to additional paid in capital of the Company accordingly. During the year ended August 31, 2023, the Company further acquired additional 5% of equity interest in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 12,741. The net carrying amount of the acquired non-controlling interests was RMB 12,895 and the difference of RMB (154) was charged to additional paid in capital of the Company accordingly. As of August 31, 2023, the equity interest of the Company in Chengdu Yinzhe is 90%. During the year ended August 31, 2022, the Company acquired additional 25% of equity interests in FGE from a non-controlling interest shareholder with total cash consideration of RMB 30,874. The net carrying amount of the acquired non-controlling interests was RMB 6,798 and the difference of RMB 24,076 was charged to additional paid in capital of the Company accordingly. As of August 31, 2022 and 2023, the equity interest of the Company in FGE is 100%. During the year ended August 31, 2023, the Company acquired additional 9% of equity interest in Linstitute from a non-controlling interests shareholder with total cash consideration of RMB 15,022. The net carrying amount of the acquired non-controlling interests was RMB 6,991 and the difference of RMB 8,031 was charged to additional paid in capital of the Company accordingly. As of August 31, 2023, the equity interest of the Company in Linstitute is 60%. |
Segment Information
Segment Information | 12 Months Ended |
Aug. 31, 2023 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | 21. SEGMENT INFORMATION The CODM reviews financial information of operating segments based on internal management report when making decisions about allocating resources and assessing the performance of the Group. During the year ended August 31, 2021, in response to the Implementation Rules, the Group reorganized its business units and made change in its reportable segments. As of August 31, 2021, 2022 and 2023, the Group has identified three reportable segments, including Overseas Schools, Complementary Education Services, and Domestic Kindergartens and K-12 Operation Services. The Group’s CODM evaluates performance based on the operating segment’s revenue and their operating results. The revenue and operating results by segments were as follows: For the year ended August 31, 2021 Continuing operations Overseas Schools Complementary Domestic Total RMB RMB RMB RMB Revenue 502,607 625,640 273,533 1,401,780 Costs of revenue (513,871 ) (382,548 ) (283,844 ) (1,180,263 ) Segment gross (loss)/profit (11,264 ) 243,092 (10,311 ) 221,517 For the year ended August 31, 2022 Continuing operations Overseas Schools Complementary Domestic Total RMB RMB RMB RMB Revenue 652,773 636,615 424,577 1,713,965 Costs of revenue (574,744 ) (373,753 ) (288,809 ) (1,237,306 ) Segment gross profit 78,029 262,862 135,768 476,659 For the year ended August 31, 2023 Continuing operations Overseas Schools Complementary Domestic Total RMB RMB RMB RMB Revenue 809,488 845,970 468,293 2,123,751 Costs of revenue (657,099 ) (511,799 ) (357,521 ) (1,526,419 ) Segment gross profit 152,389 334,171 110,772 597,332 The Group’s CODM review the financial position at consolidated level, thus total assets of each operating segment is not presented. GEOGRAPHIC INFORMATION The Group’s revenues are attributed to geographic areas based on the selling location. The following table presents total revenues from continuing operations for the years ended August 31, 2021, 2022 and 2023 from a geographical perspective: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Revenues from sales originated: China ** 911,562 1,099,735 1,354,874 Canada 9,265 7,013 3,263 US 61,641 89,309 112,840 UK 419,312 517,908 652,774 Total 1,401,780 1,713,965 2,123,751 The following table presents long-lived assets from continuing operations including property and equipment, net, and operating lease right-of-use assets as of August 31, 2022 and 2023 from a geographical perspective: As of August 31, 2022 2023 RMB RMB China ** 250,623 226,418 US 320,437 378,691 UK 1,276,050 1,358,563 Total 1,847,110 1,963,672 ** Includes mainland China and Hong Kong. |
Contribution Plan
Contribution Plan | 12 Months Ended |
Aug. 31, 2023 | |
Contribution Plan [Abstract] | |
CONTRIBUTION PLAN | 22. CONTRIBUTION PLAN In mainland China, full-time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The PRC labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. Total contributions for such employee benefits were RMB 166,765, RMB 33,002 and RMB 39,859 for the years ended August 31, 2021, 2022 and 2023, respectively, of which RMB 139,367 was related to discontinued operations for the year ended August 31, 2021. The Company also provides other defined contribution plans for the benefit of overseas employees. Total contribution for such employee benefits for the years ended August 31, 2021, 2022 and 2023 were recorded in consolidated statements of operations in an amount of RMB 27,350, RMB 29,434 and RMB 32,393, respectively. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Aug. 31, 2023 | |
Statutory Reserves and Restricted Net Assets [Abstract] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 23. STATUTORY RESERVES AND RESTRICTED NET ASSETS As stipulated by the relevant PRC laws and regulations applicable to the Group’s entities in the PRC, the Group is required to make appropriations from net income as determined in accordance with the accounting principles generally accepted in the PRC to non-distributable reserves, which include a statutory surplus reserve and a statutory welfare reserve. The PRC laws and regulations require that annual appropriations of 10% of after-tax income should be set aside prior to payments of dividends as reserve fund, and in private school sector, the PRC laws and regulations require that annual appropriations of 25% of after-tax income should be set aside prior to payments of dividend as development fund. The appropriations to statutory surplus reserve are required until the balance reaches 50% of the PRC entity registered capital. The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion and production or increase in registered capital of the entities. For the years ended August 31, 2021, 2022 and 2023, the Group made apportions of RMB 1,909, RMB 12,341 and RMB 5,283 to the statutory surplus reserve fund, respectively, and RMB nil, RMB nil and RMB nil As a result of these PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with the accounting principles generally accepted in the PRC, the PRC entities are restricted from transferring a portion of their net assets to the Group. Restricted net assets include paid-in capital, additional paid-in capital, and the statutory reserve of the Company’s PRC subsidiaries and VIEs. As of August 31, 2023, the balance of paid-in capital, additional paid-in capital, and the statutory reserve of such entities was RMB 161,035, RMB 9,556 and RMB 39,435, respectively. Therefore, the total of restricted net assets was RMB 210,026 as of August 31, 2023. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Aug. 31, 2023 | |
Subsequent Event [Abstract] | |
SUBSEQUENT EVENT | 24. SUBSEQUENT EVENT Since September 1, 2023, the Group ceased the business operation of a subsidiary that provides boarding service to the students, which contributed approximately 5% of the revenue to the Group in fiscal year 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Aug. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). As a result of the Implementation Rules stated in Note 1, the Group has considered that it lost control over Affected Entities providing compulsory education and not-for-profit kindergartens education in China by August 31, 2021, and therefore deconsolidated the Affected Entities on August 31, 2021. In addition, the Group concluded that the Affected Entities together represent a group of components of the Group and the deconsolidation represents a strategic shift that has (or will have) a major effect on the Group’s operations and financial results. Therefore, the Group has presented the results related to the Affected Entities as discontinued operations in its consolidated statements of operations and comprehensive loss for all historical comparative periods presented. |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, schools, its VIEs and the VIEs’ subsidiaries and schools. All inter-company transactions and balances have been eliminated upon consolidation. Consolidation of VIEs Prior to the effectiveness of the Implementation Rules, PRC laws and regulations prohibit foreign ownership of companies and institutions providing compulsory education services at primary and middle school levels, and restrict foreign investment in education services at the kindergarten and high school level. In addition, the PRC government regulates the provision of education services through strict licensing requirements. Accordingly, the Company, through its WFOE, Zhuhai Bright Scholar, have entered into the following contractual arrangements with BGY Education Investment, BGY Education Investment’s subsidiaries and schools, and BGY Education Investment’s shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE. In response to the Implementation Rules, a set of supplementary agreements to the contractual arrangements were entered into among Company’s WFOE, Zhuhai Bright Scholar, BGY Education Investment, BGY Education Investment’s shareholders and six newly established companies in August 2021 to enable them, as well as their subsidiaries, to entitle to the same power, rights and obligations of the contractual arrangements as BGY Education Investment. The six newly established companies, including Foshan Meiliang Education Technology Co., Ltd., Foshan Zhiliang Education Technology Co., Ltd., Beijing Boteng Education Consulting Co., Ltd., Foshan Shangtai Education Technology Co., Ltd., Foshan Renliang Education Technology Co., Ltd. and Foshan Yongliang Education Technology Co., Ltd. (collectively referred to as the “New VIEs”), are owned by the same equity shareholders as BGY Education Investment. On the same day, the New VIEs obtained the equity interest of the subsidiaries providing complementary education services, operation services for domestic schools and for-profit kindergartens from BGY Education Investment, which were previously held by BGY Education Investment. Accordingly, the Group had consolidated the financial position and operating results of BGY Education Investment, new VIEs and its subsidiaries and schools in the consolidated financial statements of the Company during the year ended August 31, 2021 before the Group lost control over the Affected Entities by August 31, 2021 as a result of the effectiveness of the Implementation Rules. The Company’s VIE includes (1) BGY Education Investment and the schools and subsidiaries it held, prior to August 31, 2021; and (2) the New VIEs and subsidiaries and schools they hold respectively before and after August 31, 2021. Agreements that provide the Group with effective control over the VIEs include: Voting Rights Proxy Agreement & Irrevocable Power of Attorney During the year ended August 2021 before the Group lost control over the Affected Entities by August 31, 2021, under voting right proxy agreement and irrevocable power of attorney, each of the shareholders of BGY Education Investment has executed a power of attorney to grant Zhuhai Bright Scholar the power of attorney to act on his or her behalf on all matters pertaining to the BGY Education Investment and to exercise all of his or her rights as a shareholder of BGY Education Investment, including but not limited to convene, attend and vote at shareholders’ meetings, designate and appoint directors and senior management members. The proxy agreement will remain in effect unless Zhuhai Bright Scholar terminates the agreement by giving a prior written notice or gives its consent to the termination by BGY Education Investment. As agreed in the aforementioned supplementary agreements, including supplementary irrevocable power of attorney, the irrevocable power of attorney between each of the shareholders of BGY Education Investment and Zhuhai Bright Scholar was terminated on August 31, 2021 due to the effectiveness of the Implementation Rules. Meanwhile, under the respective supplementary agreements, the shareholders of New VIEs entitle to the same power, rights and obligations of the contractual arrangements as the shareholders of BGY Education Investment previously entitled. Exclusive Call Option Agreement Under the exclusive call option agreement, each of the shareholders of BGY Education Investment and the New VIEs granted Zhuhai Bright Scholar or its designated representative(s) an irrevocable and exclusive option to purchase their equity interests in BGY Education Investment and the New VIEs when and to the extent permitted by PRC law. Zhuhai Bright Scholar or its designated representative(s) has sole discretion as to when to exercise such options, either in part or in full. Without Zhuhai Bright Scholar’s written consent, the shareholders of BGY Education Investment and the New VIEs shall not transfer, donate, pledge, or otherwise dispose any equity interests of BGY Education Investment and the New VIEs in any way. The acquisition price for the shares or assets will be the minimum amount of consideration permitted under the PRC law at the time when the option is exercised. The agreement cannot be terminated by BGY Education Investment, the New VIEs or their shareholders. There is no change made on the exclusive call option agreement among each of the shareholders of BGY Education Investment and Zhuhai Bright Scholar during years ended August 31, 2021, 2022 and 2023. In August 2021, the shareholders of New VIEs entered into the exclusive call option agreement with Zhuhai Bright Scholar, and no change was made since then. Equity Pledge Agreement Under the equity pledge agreement, each of the shareholders pledged all of their equity interests in BGY Education Investment and the New VIEs to Zhuhai Bright Scholar as collateral to secure their obligations under the equity pledge agreements. If the shareholders of BGY Education Investment and the New VIEs breach their respective contractual obligations, Zhuhai Bright Scholar, as pledgee, will be entitled to certain rights, including the right to dispose the pledged equity interests. Pursuant to the agreement, the shareholders of BGY Education Investment and the New VIEs shall not transfer, assign or otherwise create any new encumbrance on their respective equity interest in BGY Education Investment and the New VIEs without prior written consent of Zhuhai Bright Scholar. The equity pledge right held by Zhuhai Bright Scholar will expire when the shareholders of BGY Education Investment and the New VIEs, and Zhuhai Bright Scholar have fully performed their respective obligations under the Consulting Services Agreement and Operating Agreement, or the shareholder is no longer a shareholder of BGY Education Investment, the New VIEs or the satisfaction of all its obligations by BGY Education Investment and the New VIEs under the VIE contractual arrangements. There is no change made on the equity pledge agreement among each of the shareholders of BGY Education Investment and Zhuhai Bright Scholar during years ended August 31, 2021, 2022 and 2023. In August 2021, the shareholders of New VIEs entered into the equity pledge agreement with Zhuhai Bright Scholar, and no change was made since then. The agreements that transfer economic benefits of BGY Education Investment and the New VIEs to the Group include: Exclusive Management Services and Business Cooperation Agreement During the year ended August 2021 before the Group lost control over the Affected Entities by August 31, 2021, under the exclusive management services and business cooperation agreement, BGY Education Investment engages Zhuhai Bright Scholar as its exclusive technical and operational consultant and under which Zhuhai Bright Scholar agrees to assist in business development and related services necessary to conduct BGY Education Investment’s operational activities. BGY Education Investment shall not seek or accept similar services from other providers without the prior written approval of Zhuhai Bright Scholar. The agreements will be effective as long as BGY Education Investment exists. Zhuhai Bright Scholar may terminate this agreement at any time by giving a prior written notice to BGY Education Investment. As agreed in the aforementioned supplementary agreements, including supplementary exclusive management services and business cooperation agreement, the exclusive management services and business cooperation agreement between BGY Education Investment and Zhuhai Bright Scholar was terminated on August 31, 2021 due to the effectiveness of the Implementation Rules. Meanwhile, under the respective supplementary agreements, the New VIEs engages Zhuhai Bright Scholar as its exclusive technical and operational consultant and under which Zhuhai Bright Scholar agrees to assist in business development and related services necessary to conduct the New VIEs’ operational activities. The New VIEs shall not seek or accept similar services from other providers without the prior written approval of Zhuhai Bright Scholar. The agreements will be effective as long as the New VIEs exists. Zhuhai Bright Scholar may terminate this agreement at any time by giving a prior written notice to the New VIEs. Under the above agreements, the shareholders of BGY Education Investment (prior to termination of the agreement on August 31, 2021) and the New VIEs irrevocably granted Zhuhai Bright Scholar the power to exercise all voting rights to which they were entitled in the respective periods. In addition, Zhuhai Bright Scholar has the option to acquire all of the equity interests in BGY Education Investment and the New VIEs, to the extent permitted by the then-effective PRC laws and regulations, for nominal consideration in the respective periods. Finally, Zhuhai Bright Scholar is entitled to receive service fees for services to be provided to BGY Education Investment and the New VIEs in the respective periods. As of August 31, 2021, based on all relevant facts and circumstances, and advices from the Company’s PRC legal advisor, the Company concluded that it no longer has a controlling interest in the Affected Entities due to the effectiveness of the Implementation Rules, which resulted to the deconsolidation of the Affected Entities. In addition, as agreed in the aforementioned supplementary agreements, certain contractual agreements with BGY Education Investment and its shareholders including exclusive management services and business cooperation agreement and irrevocable power of attorney were terminated on August 31, 2021 due to the effectiveness of the Implementation Rules. Nevertheless, the legal enforceability of the contractual arrangements with the New VIEs and its subsidiaries and schools is not impacted by the Implementation Rules. During the years ended August 31, 2022 and 2023, the Group believes that the contractual arrangements with the New VIEs are in compliance with the PRC law and regulations and are legally enforceable. The Call Option Agreement and Voting Rights Proxy Agreement provide the Group with effective control over the BGY Education Investment (prior to August 31, 2021) and the New VIEs, while the Equity Pledge Agreements secure the obligations of the shareholders of BGY Education Investment (prior to August 31, 2021) and the New VIEs under the relevant agreements. Because the Group, through Zhuhai Bright Scholar, has (i) the power to direct the activities of BGY Education Investment (prior to the termination of the Exclusive Management Services and Business Cooperation Agreement on August 31, 2021) Prior to the effective of the Implementation Rules, during the year ended August 31, 2021 before the Group lost control over the Affected Entities as a result of the effect of the Implementation Rules, the Group believes that the contractual arrangements with the VIEs are in compliance with the PRC law and regulations and are legally enforceable. Risks related contractual arrangements Subsequent to the Implementation Rules became effective on September 1, 2021, except for Affected Entities, the contractual arrangements continue to be legally enforceable. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. If the ownership structure of the Company and the contractual arrangements are found to violate any PRC laws or regulations, or if the Company is found to be required but failed to obtain any of the permits or approvals for its private education business, the relevant PRC regulatory authorities would have broad discretion in imposing fines or punishments upon the Company for such violations, including: ● revoking the business and operating licenses of the Group and/or its VIEs; ● discontinuing or restricting any related-party transactions between the Group and its VIEs; ● imposing fines and penalties, or imposing additional requirements for the Group’s operations with which it, or its VIEs may not be able to comply; ● requiring the Group to restructure the ownership and control structure or its current schools; ● restricting or prohibiting the use of the proceeds of the Company’s equity offerings to finance its business and operations in China, particularly the expansion of its business through strategic acquisitions; or ● restricting the use of financing sources by the Group or its affiliated entities or otherwise restricting the Group’s or its VIEs’ ability to conduct business. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Group may not be able to consolidate BGY Education Investment and the New VIEs in its consolidated financial statements as it may lose the ability to exert effective control over BGY Education Investment, the New VIEs and their shareholders, and it may lose the ability to receive economic benefits from BGY Education Investment and the New VIEs. The following balances of VIEs as of August 31, 2022 and 2023, were included in the Group’s consolidated balance sheet after the elimination of intercompany balances, respectively. As of August 31, 2022 2023 RMB RMB ASSETS Current assets Cash and cash equivalents 142,642 139,913 Restricted cash, net 10,410 18,740 Accounts receivable, net 2,416 8,097 Amounts due from related parties, net 10,375 4,148 Other receivables, deposits and other assets, net 16,884 39,025 Inventories 5,748 4,334 Total current assets 188,475 214,257 Restricted cash - non current 1,650 1,650 Property and equipment, net 46,747 36,799 Intangible assets, net 44,137 34,656 Goodwill, net 227,814 167,100 Long-term investments 30,289 27,676 Prepayments for construction contract 4,025 950 Operating lease right-of-use assets – non-current 76,607 63,131 Other non-current assets, net 6,311 6,151 Total non-current assets 437,580 338,113 TOTAL ASSETS 626,055 552,370 LIABILITIES Current liabilities Accounts payable 6,154 3,638 Amounts due to related parties 294,164 255,453 Accrued expenses and other current liabilities 27,790 74,317 Income tax payable 19,983 23,422 Contract liabilities 107,494 111,592 Refund liabilities 9,458 7,606 Operating lease liabilities – current 20,779 22,365 Total current liabilities 485,822 498,393 Non-current portion of contract liabilities 1,108 1,147 Deferred tax liabilities, net 9,551 7,375 Operating lease liabilities – non current 72,464 64,013 Other non-current liabilities due to related parties 11,197 — Total non-current liabilities 94,320 72,535 TOTAL LIABILITIES 580,142 570,928 The following amounts of VIEs for the years ended August 31, 2021, 2022 and 2023, were included in the Group’s consolidated statements of operations and consolidated statements of cash flows after the elimination of intercompany balances. For the year ended August 31, 2021 2022 2023 RMB RMB RMB Revenue from continuing operations of the New VIEs 311,373 327,573 455,476 Revenue from discontinued operations of Affected Entities 2,303,339 — — Net income from continuing operation of the New VIEs after elimination of intercompany transactions 30,335 45,770 1,876 Net income from discontinued operations of Affected Entities (Note 3) after elimination of intercompany transactions 369,343 — — Net cash provided by operating activities 555,679 36,096 141,875 Net cash used in investing activities* (2,893,644 ) (54,677 ) (68,610 ) Net cash (used in)/provided by financing activities (42,844 ) 26,281 (67,664 ) Net (decrease)/increase in cash and cash equivalents and restricted cash (2,380,809 ) 7,700 5,601 Cash and cash equivalents and restricted cash at beginning of year 2,527,811 147,002 154,702 Cash and cash equivalents and restricted cash at end of year 147,002 154,702 160,303 Note*: Due to loss of control of the Affected Entities on August 31, 2021, the net cash outflow disclosed in investing activities is RMB 2,912,290. VIEs contributed an aggregate of 70.6%, 19.1% and 21.4% of the consolidated revenue from both discontinued and continuing operations for the three years ended August 31, 2021, 2022 and 2023, respectively. As of August 31, 2022, the VIEs accounted for an aggregate of 12.6% of the consolidated total assets, and 19.0% of the consolidated total liabilities. And as of August 31, 2023, the VIEs accounted for an aggregate of 12.0% of the consolidated total assets, and 18.7% and of the consolidated total liabilities. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to BGY Education Investment (prior to deconsolidation on August 31, 2021) and the New VIEs. However, if BGY Education Investment and the New VIEs were ever to need financial support, the Group may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of BGY Education Investment, the New VIEs or entrustment loans to BGY Education Investment and the New VIEs. After the effectiveness of the Implementation Rules, the loans provided to BGY Education Investment and its subsidiaries and schools (if any) would then be accounted for as related party transactions. The Group believes that there are no assets held in the BGY Education Investment and the New VIEs that can be used only to settle obligations of BGY Education Investment and the New VIEs, except for registered capital and the PRC statutory reserves, in the respective periods. As the BGY Education Investment and the New VIEs is incorporated as a limited liability company under the PRC Company Law, creditors of the BGY Education Investment and the New VIEs do not have recourse to the general credit of the Company for any of the liabilities of the BGY Education Investment and the New VIEs in the respective periods. Relevant PRC laws and regulations restrict BGY Education Investment and the New VIEs in the respective periods from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 23 for disclosure of restricted net assets. |
Deconsolidation | (c) Deconsolidation Upon the occurrence of certain events and on a regular basis, the Group evaluates whether it no longer has a controlling interest in its subsidiaries, including consolidated variable interest entities. If the Company determines it no longer has a controlling interest, the subsidiary is deconsolidated. The Company records a gain or loss on deconsolidation based on the difference on the deconsolidation date between (i) the aggregate of (a) the fair value of any consideration received, (b) the fair value of any retained non-controlling investment in the former subsidiary and (c) the carrying amount of any non-controlling interest in the subsidiary being deconsolidated, less (ii) the carrying amount of the former subsidiary’s assets and liabilities. The Company assesses whether a deconsolidation is required to be presented as discontinued operations in its consolidated financial statements on the deconsolidation date. This assessment is based on whether or not the deconsolidation represents a strategic shift that has or will have a major effect on the Company’s operations or financial results. If the Company determines that a deconsolidation requires presentation as a discontinued operation on the deconsolidation date, or at any point during the one-year period following such date, it will present the former subsidiary as a discontinued operation in current and comparative period financial statements. |
Use of estimates | (d) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include the consolidation and deconsolidation of variable interest entities, impairment assessment of indefinite lived intangible assets, goodwill and long-lived assets, assessment of realization of deferred tax assets and refund liabilities. Actual results may differ materially from those estimates. |
Fair value | (e) Fair value Fair value is considered to be the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying values of short-term financial instruments, which consist of cash and cash equivalents, restricted cash, accounts receivable, amounts due from related parties, other receivables, deposits, accounts payable, amounts due to related parties, short-term loans and other current liabilities that are recorded at cost, which approximate s |
Foreign currency translation | (f) Foreign currency translation The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the affiliates incorporated outside of mainland China includes the United States dollar (“US dollar” or “US$”), Great Britain Pound (“GBP”), Hong Kong dollar (“HKD” or “HK$”), and Canadian dollar (“CAD”). The functional currency of all the other subsidiaries and the VIEs is RMB. Monetary assets and liabilities denominated in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Exchange gains and losses are recognized in the consolidated statement of operation. All assets and liabilities are translated at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is translated at historical exchange rate. Any translation adjustments are not included in determining net income but are included in foreign exchange adjustment to other comprehensive income. |
Foreign currency risk | (g) Foreign currency risk The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents and restricted cash denominated in RMB amounted to RMB 468,184 and RMB 366,560 as of August 31, 2022 and 2023, respectively. |
Convenience translation | (h) Convenience translation The Group’s reporting currency is RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the then current exchange rates, for the convenience of the readers. Translations of balances in the consolidated balance sheets, and the related consolidated statements of operations, comprehensive loss, shareholders’ equity and cash flows from RMB into US dollars as of and for the year ended August 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.2582 , |
Cash and cash equivalents | (i) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash in banks and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. |
Restricted cash | (j) Restricted cash The Group’s restricted cash mainly represents (a) deposits in connection with the short-term loan disclosed in Note 11 ; (b) |
Long-term investments | (k) Long-term investments Long-term investments include equity securities without readily determinable fair values and equity method investments. ● Equity securities without readily determinable fair values The Group elects a practicability exception to fair value measurement for the equity securities without readily determinable fair values, under which these investments are measured at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer with fair value change recorded in the consolidated statements of operations. The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASU 2011-4: Fair Value Measurement (ASC 820). If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated statements of operations. ● Equity method investments Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest through investment in ordinary shares or in-substance ordinary shares, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%, and other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. For certain investment in the limited partnership, the Group’s influence over the partnership operating and financial policies is determined to be more than minor. Accordingly, the Group accounts for the investment as an equity method investment. Under the equity method, the Group initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s net income or loss after the date of investment into the consolidated statements of operations and accordingly adjusts the carrying amount of the investment. The Group reviews its equity method investments for impairment whenever an event or circumstance indicates that an OTTI has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investments. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. |
Allowance for doubtful accounts | (l) Allowance for doubtful accounts Accounts receivable mainly represents amounts due from corporate customers of the Group’s various subsidiaries, and amounts due from students of the Group’s UK schools. The allowance for doubtful accounts is the Group’s best estimates of the amount of probable credit losses in the Group’s existing accounts receivable balance. The Group provides allowance for doubtful accounts based on historical credit loss experience and a review of the current status and reasonable and supportable forecasts of future events and economic conditions. Accounts receivable, restricted cash, other receivables and amounts due from related parties are presented net of allowance for doubtful accounts. |
Inventories | (m) Inventories Inventories are stated at the lower of cost or net realizable value. |
Property and equipment, net | (n) Property and equipment, net Property and equipment is generally stated at historical cost and depreciated on a straight-line basis over the estimated useful lives of the assets. Depreciation expense is included in either cost of revenue or selling, general and administrative expenses, as appropriate. Property and equipment consist of the following and depreciation is calculated on a straight-line basis over the following estimated useful lives: Buildings 20 - 50 years Leasehold improvement 3 - 20 years or the lesser of remaining life of lease Motor vehicles 4 - 10 years Electronic equipment 4 - 10 years Office equipment 3 - 5 years Furniture and other equipment 3 - 5 years Others 3 years Construction in progress * Note*: The Group constructs certain of its property. In addition to cost under the construction contracts, external costs, including consulting fee directly related to the construction of such facilities, are capitalized. Depreciation is recorded at the time assets are ready for the intended use. The Group assesses lands with indefinite life for impairment periodically. |
Goodwill, net | (o) Goodwill, net Goodwill represents the excess of the purchase consideration over the fair value of the identifiable net assets acquired in a business combination. Goodwill is not amortized but is tested for impairment on an annual basis as of August 31, or more frequently if events or changes in circumstances indicate that it might be impaired. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform quantitative goodwill impairment test. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. The Group will perform the quantitative impairment test if the Group bypasses the qualitative assessment, or based on the qualitative assessment, if it is more likely than not that the fair value of each reporting unit is less than the carrying amount. For the year ended August 31, 2023, the Group bypassed the qualitative assessment and performed a quantitative assessment of the goodwill for all reporting units. In the impairment test, the Group compares the fair value of a reporting unit to its carrying amount. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Group estimate the fair values of reporting units using discounted cash flow model of the income approach, which requires management to make significant estimates and assumptions, including, but not limited to, discount rate, terminal growth rate and others used to project future cash flows, such as forecasts of future revenues. These assumptions were affected by management’s business plans and expectations about future market and economic conditions. For the years ended August 31, 2021, 2022 and 2023, the Group recorded RMB 84,730, RMB 419,805 and RMB 207,830 impairment loss on goodwill, respectively (Note 9). |
Intangible assets | (p) Intangible assets, net Intangible assets with a definite economic life are carried at cost less accumulated amortization. Intangible assets with definite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Intangible assets with indefinite lives consist of oversea schools’ brand name and is tested for impairment annually, or whenever events are indicators of impairment occur between annual impairment tests. Management expects to use the brand name indefinitely. Like goodwill, the Group test indefinite lived intangible assets for impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative impairment test. If based on the qualitative assessment, it is more likely than not that the fair value of the indefinite lived intangible asset is less than its carrying amount, a quantitative impairment test is required. The Group test indefinite lived intangible assets for impairment using the relief-from-royalty method of the income approach, which requires management to make significant estimates and assumptions, including, but not limited to, royalty rate, discount rate, terminal growth rate and forecasts of future revenues. Acquired intangible assets consist of trademarks and brand names, customer relationship, backlog and student base, non-compete agreements and core curriculum are carried at cost, less accumulated amortization and impairment. The amortization periods by major intangible asset classes are as follows: Trademarks and brand names 10 years-indefinite Core curriculum 10 years Customer relationship, backlog and student base 0.6-7 years Non-compete agreements 4-8 years For the years ended August 31, 2021, 2022 and 2023, the Group recorded RMB nil nil |
Leases | (q) Leases The Group determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to be recorded in the balance sheets as operating lease right-of-use (ROU) assets and operating lease liabilities, initially measured at the present value of the lease payments. The Group adopts the practical expedient to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. Lastly, the Company also has elected to utilize the short-term lease recognition exemption and, for those leases that qualified, the Group did not recognize operating lease ROU assets or operating lease liabilities. The Company has leases that have variable payments, including lease payments where lease payment increases are based on the percentage change in the Consumer Price Index (“CPI”). For such leases, payment at the lease commencement date is used to measure the operating lease ROU assets and operating lease liabilities. Lease payments that are based on a change in CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Majority of the leases within Overseas Schools reportable segment have variable payments. As of August 31, 2022 and 2023, the leases within Overseas Schools reportable segment that are subject to terms of variable payments contributed to the operating lease right-of-use assets by RMB 872,143 and RMB 928,284 respectively, and to operating lease liabilities by RMB 896,994 and RMB 964,043, respectively. As the rate implicit in the lease is not readily determinable, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expenses are recorded on a straight-line basis over the lease term. During the fiscal years ended August 31, 2022 and 2023, the Group received Coronavirus Disease 2019 (“COVID-19”) related rent concessions. Consistent with updated guidance from the Financial Accounting Standards Board (“FASB”) in April 2020, the Group elected to treat COVID-19-related rental discount as variable rent and applied payable approach to COVID-19 related deferral of rent payment. Rental discount, amounting to RMB 4,479 and RMB 981, were recognized as an offset to rent expense within selling, general and administrative expenses and cost of revenue on the Group’s consolidated statement of operations during the years ended August 31, 2022 and 2023, respectively. |
Impairment of long-lived assets | (r) Impairment of long-lived assets with definite life The Group evaluates the recoverability of long-lived assets with determinable useful lives whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable. The Group measures the carrying amount of long-lived asset against the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. Impairment exists when the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require judgment and actual results may differ from assumed and estimated amounts. The Group recorded RMB 15,575, RMB 8,861 and RMB nil nil nil nil |
Other non-current assets | (s) Other non-current assets Other non-current assets primarily consist of deposits for operating leases. |
Revenue recognition | (t) Revenue recognition Revenue is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The primary sources of the Group’s revenues are as follows: Income from educational programs and services The educational programs and services from continuing operations consist of tuition, boarding and meal service from kindergartens in the PRC and overseas schools in the UK and the US. After the effectiveness of the Implementation Rule on August 31, 2021, the education services also consist of boarding and meal service provided to the students in the affected private schools. The educational programs and services from discontinued operations consist of tuition, boarding and meal service from international schools, bilingual schools and not-for-profit kindergartens in the PRC. Each contract of educational programs and services is accounted for as a single performance obligation which is satisfied proportionately over the service period. The program and service fee is generally collected in advance prior to the beginning of each semester, or prior to the beginning of the education programs, and is initially recorded as contract liabilities. Refunds are provided to students if they decide within the predetermined period that they no longer want to take the course or enroll in the program. After the predetermined period as agreed in the contract, if a student withdraws from the program, the program fee is no longer available for refund. The Group determines the transaction price to be earned based on the tuition fee and the estimated refund liability. The refund liability is determined based on historical refund ratio on a portfolio basis using the expected value method. Historically, the Group has not had material refunds in this respect. Complementary training course fees The Group offers various types of after-school tutoring services and art training services, which primarily consist of after-school group class courses, personalized tutoring courses and art training courses. The tutoring services and art training services are accounted for as a single performance obligation. Tutoring services and art training service fees is recognized proportionately as the tutoring sessions and art training courses are delivered. The course fees are generally collected in advance and are initially recorded as contract liability. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. For certain courses, the Group also offers refunds for any unutilized classes for students who withdraw from the course. The Group determines the transaction price to be earned based on the tutoring services and art training service fees and the estimated refund liability. The refund liability is determined based on historical refund ratio on a portfolio basis using the expected value method. Commission income The Group earns commission revenue by providing referral services to overseas education universities and institutions. Students’ referral service is accounted for as a single performance obligation. Commission income is recognized at the point in time when the referred students enrolled at the overseas education universities or institutions’ program, with the tuition fees are paid and upon the Group is entitled to the commission income. Consulting service income The Group offers study abroad consulting and career consulting services to students/candidates who intend to study abroad and to successfully obtain target job offer respectively. Study-abroad consulting services and career consulting services are accounted for as a single performance obligation respectively. The Group charges each student/candidate an up-front prepaid fee based on the scope of consulting services requested by the student/candidate. Portion of the prepaid services fee are refundable if the student/candidate does not successfully gain admission or obtain target job offer. The Group determines the transaction price to be earned based on the consulting service fees and the estimated refund liability. The refund liability is determined based on historical refund ratio on a portfolio basis using the expected value method. The Group has not experienced significant refunds in the past or in the current year. The Group recognizes revenue over the consulting service period. Camp service income The Group offers camp services for students during school vacations. Camp service is accounted for as a single performance obligation. Camp service fees are generally collected upfront and are initially recorded as contract liability. Portion of the prepaid service fees are refundable if the student requests for refund prior to the camp starts. The Group determines the transaction price to be earned based on the camp service fee and the estimated refund liability. The refund liability is determined based on historical refund ratio on a portfolio basis using the expected value method. The Group has not experienced significant refunds in current year. The Group recognizes revenue over the camping period. Operation service income The Group offers operation services which mainly consist of marketing and consulting, procurement support, human resources, finance and legal support, and information technology support, to domestic not-for-profit kindergartens. Operation service is accounted for as a single performance obligation. The Group recognizes the operation service income over the service period. Practical expedients and exemptions The Group has applied the new revenue standard requirements to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Therefore, the Group elects the portfolio approach in applying the new revenue guidance. The Group has elected to record the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. |
Cost of revenues | (u) Cost of revenues Cost of revenues consists of the following: ● staff costs, which primarily consist of salaries and other benefits for the teachers, ● education expenses, which primarily consist of expenses related to educational activities, including teaching material expenses and student activity expenses, ● depreciation and amortization costs of long-lived assets used in the provision of educational activities, ● utilities and maintenance costs for the schools, ● cost of goods sold for ancillary services, which primarily consist of cost of goods sold at the on-campus canteens, ● commission expenses to agents in relation to referral services and overseas school enrollment. |
Government Subsidies | (v) Government Subsidies The Group recognizes government subsidies as other operating income when they are received because they are not subject to any past or future conditions, there are no performance conditions or conditions of use, and they are not subject to future refunds. Government subsidies received and recognized as other operating income totaled RMB 20,213, RMB 2,256 and RMB 9,049 for the years ended August 31, 2021, 2022 and 2023, respectively, of which RMB 5,441, RMB nil nil |
Income Taxes | (w) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, based upon the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of Group’s provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. The Group record unrecognized tax benefit liabilities for known or anticipated tax issues based on the Group’s analysis of whether, and the extent to which, additional taxes will be due. The Group accrues interest and penalties related to unrecognized tax benefits in other liabilities and recognizes the related expense in income tax expense. |
Employee Benefits | (x) Employee Benefits Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the period during which services are rendered by employees. Pursuant to the relevant labor rules and regulations in the PRC, the Group participates in defined contribution retirement schemes (the “Schemes”) organized by the relevant local government authorities for its eligible employees whereby the Group is required to make contributions to the Schemes at certain percentages of the deemed salary rate announced annually by the local government authorities. The Company also makes payments to other defined contribution plans for the benefit of employees employed by subsidiaries outside of the PRC (Note 22). The Group has no other material obligation for payment of pension benefits associated with those schemes beyond the annual contributions described above. |
Share-based compensation | (y) Share-based compensation Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument issued and recognized as compensation expense net of a forfeiture rate on a straight-line basis, over the requisite service period, with a corresponding impact reflected in additional paid-in capital. For the share option with service condition only, changes in estimated forfeiture rate will be adjusted on a prospective basis. The estimate of forfeiture rate will be adjusted over the requisite service period to the extent that actual forfeiture rate differs, or is expected to differ, from such estimates. |
Comprehensive income | (z) Comprehensive loss Comprehensive loss is defined to include all changes in equity from transactions and other events and circumstances from non-owner sources. For the years presented, the Group’s comprehensive loss includes net loss and foreign currency translation adjustments and is presented in the consolidated statements of comprehensive loss. |
Segment | (aa) Segment The Group uses management approach to determine operating segment. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocation of resource and assessing performance. The CODM was identified as the management committee who reviews the financial information of its operating and reportable segments when making decisions about allocation of resources and assessing performance. In response to the Implementation Rules, the Group operates in three reportable segments due to the reorganization of the business units, including Overseas Schools, Complementary Education Services, and Domestic Kindergartens and K-12 Operation Services. |
Concentration of credit risk | (ab) Concentration of credit risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash and cash equivalents and restricted cash. As of August 31, 2023, substantially all of the Group’s cash and cash equivalents and restricted cash were deposited with financial institutions with high-credit ratings and quality. |
Earnings per Share | (ac) Earnings per Share Basic earnings per share are computed by dividing earning attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised into ordinary shares. The Group had share options which could potentially dilute basic earnings per ordinary share in the future. To calculate the number of shares for diluted earnings per ordinary shares, the effect of the share options is computed using the treasury stock method. |
Recent accounting pronouncements adopted | (ad) Recent accounting pronouncements adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. The new guidance is effective for annual periods beginning after December 15, 2021, with early adoption permitted. The Group adopted this new standard beginning September 1, 2022 with no material impact on its consolidated financial statements. |
Recent accounting pronouncements issued not yet adopted | (ae) Recent accounting pronouncements issued not yet adopted In November 2023, the FASB issued ASU 2023-07, which the amendments in this Update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Group is in the process of evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Organization and Principal Activities [Abstract] | |
Schedule of Principal Subsidiaries and VIE Subsidiaries and Schools | As of August 31, 2023, details of the material Company’s subsidiaries, schools, its VIEs and the VIE’s major subsidiaries and schools of the continuing operations were as follows: Name Place of Date of Equity interest Principal activities Major wholly owned subsidiaries: Impetus Investment Limited (“Impetus”) Cayman April 1, 2014 100 % Investment holding Zhuhai Bright Scholar PRC January 24, 2017 100 % Management consulting service Time Education China Holdings Limited Hong Kong August 16, 2013 100 % Investment holding Bright Scholar (Enlightenment) Investment Holdings Limited Cayman December 27, 2017 100 % Investment holding Shenzhen Qianhai Xingkeyucai Trading Co., Ltd. PRC December 15, 2016 100 % Complementary education services Can-achieve (Beijing) Education Consulting Co., Ltd. PRC May 14, 2008 70 % Complementary education services Guangdong Bright Scholar Education Technology Co., Ltd. PRC September 26, 2017 100 % Complementary education services Guangdong Zhixing Weilai Logistics Management Co., Ltd. PRC October 24, 2018 100 % Complementary education services Bright Scholar (UK) Holdings Limited UK July 31, 2018 100 % Investment holding CATS Colleges Holdings Limited UK March 13, 2019 100 % Investment holding Cambridge Arts and Science Limited UK October 23, 1997 100 % Overseas education services The Worthgate School Canterbury UK August 29, 2007 100 % Overseas education services Guildhouse School London UK November 17, 2010 100 % Overseas education services CATS Academy Boston Inc. US July 5, 2012 100 % Overseas education services VIEs of the Company: Foshan Meiliang Education Technology Co., Ltd. PRC August 13, 2021 100 % Investment holding Foshan Zhiliang Education Technology Co., Ltd. PRC August 13, 2021 100 % Investment holding Beijing Boteng Consulting Co., Ltd. PRC June 1, 2021 100 % Investment holding Foshan Shangtai Education Technology Co., Ltd. PRC August 13, 2021 100 % Investment holding Foshan Renliang Education Technology Co., Ltd. PRC August 12, 2021 100 % Investment holding Foshan Yongliang Education Technology Co., Ltd. PRC August 13, 2021 100 % Investment holding Major subsidiaries and schools of the VIEs: Dongguan Qingxi Country Garden Kindergarten PRC January 9, 2018 100 % Kindergarten education services Chengdu Pidu Bright Scholar Kindergarten Co., Ltd. PRC September 11, 2020 100 % Kindergarten education services Guangzhou Zengcheng Fettes College Kindergarten Co., Ltd. PRC September 15, 2020 100 % Kindergarten education services Beijing Huanxue International Travel Limited PRC October 16, 2020 100 % Complementary education services Foshan Shunde Shengbo Culture and Arts Training Co., Ltd. PRC July 16, 2015 100 % Complementary education services Chengdu Laizhe Education and Technology Co., Ltd. PRC November 12, 2013 90 % Complementary education services Shanghai Huodai Commercial Information Consulting Co., Ltd. PRC December 14, 2017 60 % Complementary education services |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Amounts and Balances of Bgy Education Investment | The following balances of VIEs as of August 31, 2022 and 2023, were included in the Group’s consolidated balance sheet after the elimination of intercompany balances, respectively. As of August 31, 2022 2023 RMB RMB ASSETS Current assets Cash and cash equivalents 142,642 139,913 Restricted cash, net 10,410 18,740 Accounts receivable, net 2,416 8,097 Amounts due from related parties, net 10,375 4,148 Other receivables, deposits and other assets, net 16,884 39,025 Inventories 5,748 4,334 Total current assets 188,475 214,257 Restricted cash - non current 1,650 1,650 Property and equipment, net 46,747 36,799 Intangible assets, net 44,137 34,656 Goodwill, net 227,814 167,100 Long-term investments 30,289 27,676 Prepayments for construction contract 4,025 950 Operating lease right-of-use assets – non-current 76,607 63,131 Other non-current assets, net 6,311 6,151 Total non-current assets 437,580 338,113 TOTAL ASSETS 626,055 552,370 LIABILITIES Current liabilities Accounts payable 6,154 3,638 Amounts due to related parties 294,164 255,453 Accrued expenses and other current liabilities 27,790 74,317 Income tax payable 19,983 23,422 Contract liabilities 107,494 111,592 Refund liabilities 9,458 7,606 Operating lease liabilities – current 20,779 22,365 Total current liabilities 485,822 498,393 Non-current portion of contract liabilities 1,108 1,147 Deferred tax liabilities, net 9,551 7,375 Operating lease liabilities – non current 72,464 64,013 Other non-current liabilities due to related parties 11,197 — Total non-current liabilities 94,320 72,535 TOTAL LIABILITIES 580,142 570,928 For the year ended August 31, 2021 2022 2023 RMB RMB RMB Revenue from continuing operations of the New VIEs 311,373 327,573 455,476 Revenue from discontinued operations of Affected Entities 2,303,339 — — Net income from continuing operation of the New VIEs after elimination of intercompany transactions 30,335 45,770 1,876 Net income from discontinued operations of Affected Entities (Note 3) after elimination of intercompany transactions 369,343 — — Net cash provided by operating activities 555,679 36,096 141,875 Net cash used in investing activities* (2,893,644 ) (54,677 ) (68,610 ) Net cash (used in)/provided by financing activities (42,844 ) 26,281 (67,664 ) Net (decrease)/increase in cash and cash equivalents and restricted cash (2,380,809 ) 7,700 5,601 Cash and cash equivalents and restricted cash at beginning of year 2,527,811 147,002 154,702 Cash and cash equivalents and restricted cash at end of year 147,002 154,702 160,303 Note*: Due to loss of control of the Affected Entities on August 31, 2021, the net cash outflow disclosed in investing activities is RMB 2,912,290. Note*: The Group constructs certain of its property. In addition to cost under the construction contracts, external costs, including consulting fee directly related to the construction of such facilities, are capitalized. Depreciation is recorded at the time assets are ready for the intended use. |
Schedule of Property and Equipment Depreciation on Straight-Line Basis | Property and equipment consist of the following and depreciation is calculated on a straight-line basis over the following estimated useful lives: Buildings 20 - 50 years Leasehold improvement 3 - 20 years or the lesser of remaining life of lease Motor vehicles 4 - 10 years Electronic equipment 4 - 10 years Office equipment 3 - 5 years Furniture and other equipment 3 - 5 years Others 3 years Construction in progress * Note*: The Group constructs certain of its property. In addition to cost under the construction contracts, external costs, including consulting fee directly related to the construction of such facilities, are capitalized. Depreciation is recorded at the time assets are ready for the intended use. |
Schedule of Intangible Asset Classes for Amortization Periods | The amortization periods by major intangible asset classes are as follows: Trademarks and brand names 10 years-indefinite Core curriculum 10 years Customer relationship, backlog and student base 0.6-7 years Non-compete agreements 4-8 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Discontinued Operations [Abstract] | |
Schedule of Reconciliation of the Major Classes of Income and Losses From Discontinued Operations in the Consolidated Statements of Operations and Comprehensive Loss | Reconciliation of the major classes of income and losses from discontinued operations in the consolidated statements of operations and comprehensive loss for the year ended August 31, 2021 is as follow: For the year ended 2021 RMB Revenue 2,303,339 Cost of revenue (1,315,026 ) Gross profit 988,313 Selling, general and administrative expenses (400,012 ) Other operating income 7,604 Operating income 595,905 Interest expense, net (695 ) Investment income 56,657 Other expenses (4,180 ) Income before income taxes and share of equity in loss of unconsolidated affiliate 647,687 Income tax expense (16,877 ) Share of equity in loss of unconsolidated affiliate (200 ) Net income (before one-off loss upon deconsolidation of the Affected Entities) 630,610 One-off loss upon deconsolidation of the Affected Entities, net of tax (261,267 ) Net income from discontinued operations 369,343 Summarized cash flow information for discontinued operations are as follows: Net cash provided by operating activities 516,873 Net cash provided by investing activities* 137,323 Net cash used in financing activities** (153,987 ) Note*: The amount of RMB 192,373 cash was redeemed from continuing operations for the year ended August 31, 2021. Note**: The amount of RMB 111,668 was repaid to continuing operations for the year ended August 31, 2021. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Pro Forma Information | Pro forma for the year ended August 31, 2021 2021 Pro forma revenue from continuing operations 1,406,147 Pro forma operating income from continuing operations 390,843 Pro forma net loss attributable to the Group (53,253 ) |
Other Receivables, Deposits a_2
Other Receivables, Deposits and Other Assets (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Other Receivables, Deposits and Other Assets [Abstract] | |
Schedule of Other Receivables Deposits and Other Assets | Other receivables, deposits and other assets consisted of the following: As of August 31, 2022 2023 RMB RMB Other receivables from third parties 7,334 6,496 Advances to employees 4,396 2,932 Deposits 11,949 17,140 Prepaid tax and deductible value-added tax-in 10,035 9,479 Rental prepayment (a) 28,003 23,392 Prepayment for suppliers 45,661 51,201 Receivables from disposal of property and equipment - 25,256 Others 7,061 13,740 114,439 149,636 Less: allowance for other receivables (1,677 ) (957 ) 112,762 148,679 (a) Rental prepayment represents the prepayment of rent related to leases less than 12 months. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following: As of August 31, 2022 2023 RMB RMB Buildings 254,428 315,020 Leasehold improvement 336,450 376,071 Motor vehicles 1,839 2,982 Electronic equipment 58,425 63,000 Office equipment 125,630 141,750 Furniture and other equipment 60,017 54,689 Others 65,235 70,817 Less: accumulated depreciation (531,195 ) (619,715 ) Construction in progress 22,448 9,611 Property and equipment, net 393,277 414,225 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net, consisted of the following: As of August 31, 2022 As of August 31, 2023 Cost Accumulated Accumulated Net Cost Accumulated Accumulated Net RMB RMB RMB RMB RMB RMB RMB RMB Indefinite lived intangible assets Brand names 366,070 - (113,385 ) 252,685 402,928 ** - (113,385 ) 289,543 Definite lived intangible assets Brand names 50,486 (21,148 ) - 29,338 50,486 (25,342 ) - 25,144 Trademarks 39,016 (14,226 ) - 24,790 39,016 (18,826 ) (1,569 ) 18,621 Non-compete agreements 29,800 (18,289 ) - 11,511 29,800 (22,423 ) (483 ) 6,894 Student bases 21,857 (18,946 ) - 2,911 21,857 (19,354 ) - 2,503 Others* 10,314 (8,653 ) - 1,661 10,314 (9,942 ) - 372 517,543 (81,262 ) (113,385 ) 322,896 554,401 (95,887 ) (115,437 ) 343,077 Note*: Others include core curriculum, software, backlog and license. Note**: The increase in cost of brand names in 2023 is resulted from the foreign exchange realignment. |
Long-Term Investments, Net (Tab
Long-Term Investments, Net (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Long TermInvestments [Abstract] | |
Schedule of Long-Term Investments | Long-term investments, net, consisted of the following: As of August 31, 2022 2023 RMB RMB Equity method investments: Foshan Yingrui Gaoze Equity Investment Partnership (Limited Partnership) (“Gaoze Partnership”) (a) 3,338 3,338 Startcamp Education Technology Limited (“Startcamp”) (b) 8,211 7,872 BOTO Academic English Co., Ltd. (“BOTO”) (c) 1,464 - Other investments (d) 439 439 Equity securities without readily determinable fair value (e) 27,034 24,421 Total 40,486 36,070 (a) On June 1, 2020, Gaoze Partnership was established with the total committed capital of RMB 1,270,000. The Group participates in Gaoze Partnership as a limited partner, and invested RMB 42,000 and RMB 1,134 in fiscal year 2020 and 2021, respectively. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and owns 19.84% interest in Gaoze Partnership. The fair value of the underlying investment of Gaoze Partnership is estimated using discounted cash flow model. Loss of RMB 200, RMB 39,596 and RMB nil (b) The Group acquired 25% equity interest in Startcamp for total cash consideration of RMB 10,000 in the year ended August 31, 2019. The Group accounts for the investment under the equity method because the Group has the ability to exercise significant influence but does not have control over the investee. Loss of RMB 998, RMB 153 and RMB 339 were recorded for the years ended August 31, 2021, 2022 and 2023, respectively. (c) The Group holds 30% equity interest in BOTO through acquisition of Can-achieve Education Consultants Co., Ltd. and its subsidiaries (“Can-achieve Group”) in fiscal year 2018. The Group accounts for the investment under the equity method because the Group has the ability to exercise significant influence but does not have control over the investee. Loss of RMB 4 and RMB nil (d) The other investments include 46% equity interest in Beijing Cloud Apply Co., Ltd. and 50% equity interest in Sanli Foundation Education Limited . The Group accounts for these investments under the equity method because the Group has the ability to exercise significant influence but does not have control over the investees. During the year ended August 31, 2022, the Group redeemed its 50% equity interest in Sanli Foundation Education Limited by offsetting the consideration payable of RMB 251, which is equal to the investment cost. Loss of RMB 16, gain of RMB 43 and loss of RMB nil (e) The Group accounted for these equity investments using the measurement alternative when equity method is not applicable and there is no readily determinable fair value for the investments. During the year ended August 31, 2021, the Group acquired 18% equity interest in Shanghai Yurong Culture and Art Co., Ltd. (“Golden Ballet”) for a total cash consideration of RMB 21,951, and redeemed its 10% equity interest in Chengdu Qingjiao Education Technology Co., Ltd. with a total cash consideration of RMB 1,500, which is equal to the investment cost. During year ended August 31, 2022, the Group acquired 10% equity interest in Hurun Baixue (Shanghai) Industrial Co., Ltd for a total cash consideration RMB 5,000. No impairment loss was recorded during the years ended August 31, 2021 and 2022, respectively. During the year ended August 31, 2023, the Group recorded RMB 2,613 of impairment loss on the equity interest of Golden Ballet, representing the difference between the fair value of the investment and its carrying amount. |
Goodwill, Net (Tables)
Goodwill, Net (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Goodwill [Abstract] | |
Schedule of Table Summarizes the Change in the Carrying Amount of Goodwill by Segment | The following table summarizes the change in the carrying amount of goodwill by segment for the years ended August 31, 2022 and 2023: Overseas Schools Complementary Total RMB RMB RMB Balance as of August 31, 2021 1,220,965 729,221 1,950,186 Impairment (a) (419,805 ) — (419,805 ) Exchange realignment (96,465 ) — (96,465 ) Balance as of August 31, 2022 704,695 729,221 1,433,916 Impairment (b) — (207,830 ) (207,830 ) Exchange realignment 102,786 — 102,786 Balance as of August 31, 2023 807,481 521,391 1,328,872 (a) For each of the years ended August 31, 2021 and 2022, the Company performed impairment test of its goodwill. For the year ended August 31, 2021, the Group has determined that based on the underperformance of Elan reporting unit, market conditions and other factors including the adverse impacts from the regulations on after-school tutoring promulgated by the General Office of State Council and the General Office of Central Committee of the Communist Party of China in the fiscal year 2021, it was more likely than not that there were indications of impairment. Furthermore, the Group also has determined that based on the underperformance of the Chengdu Yinzhe reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Elan and Chengdu Yinzhe reporting unit exceeded their respective fair values. Accordingly, the Group recorded RMB 51,361 and RMB 33,369 as impairment loss on goodwill of Elan and Chengdu Yinzhe on the consolidated statement of operations for the year ended August 31, 2021, respectively. The impairment is recorded in complementary education services reportable segment. Based on the results of the Group’s annual goodwill impairment assessment performed as of August 31, 2022 for all of reporting units, it is determined that the carrying amounts of the Group’s goodwill reporting units did not exceed their respective fair values and, therefore, no impairment existed, except for the Overseas Schools reporting unit. The Group has determined that based on the underperformance of the Overseas Schools reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of the Overseas Schools reporting unit exceeded its fair value. Accordingly, the Group recorded RMB 419,805 as impairment loss on goodwill on the consolidated statement of operations for the year ended August 31, 2022. The impairment is recorded in Overseas Schools reportable segment. (b) For the year ended August 31, 2023, the Group performed impairment test of its goodwill. The Group has determined that based on the underperformance, the market conditions and other factors, it was more likely than not that there were indications of impairment for Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units exceeded their respective fair value. Accordingly, the Group recorded RMB 116,755, RMB 39,840, RMB 30,361 and RMB 20,874 as impairment loss on goodwill of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units on the consolidated statement of operations for the year ended August 31, 2023, respectively. The key assumptions used in the annual goodwill impairment assessment for these reporting units are a discount rate of 17.5% (Can-achieve); 18.0% (Chengdu Yinzhe); 16.5% (Hangzhou Impression); 25.0% (Leti); a terminal growth rate of 2.0% (Can-achieve); 2.0% (Chengdu Yinzhe); 2.0% (Hangzhou Impression); 2.0% (Leti); and forecasts future revenues. The impairment is recorded in complementary education services reportable segment. Furthermore, based on the result of the Group’s annual goodwill impairment performed as of August 31, 2023, it is determined that the carrying amount of the Overseas Schools reporting unit did not exceed its fair value, therefore, no impairment loss was recorded. In the Group’s 2023 annual goodwill impairment assessment for the Overseas Schools reporting unit, the key assumptions used are a discount rate of 15.0% (2022: 15.0%), a terminal growth rate of 2.0% (2022: 2.3%) and forecast future revenue. |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: As of August 31, 2022 2023 RMB RMB Payroll and related benefits 75,750 99,184 Temporary receipt from students 51,555 12,031 Deposits received 34,940 43,687 Other tax payable 17,574 4,992 Professional fee 13,297 30,991 Commission fee 8,257 10,570 Accrual rental expense 3,561 4,209 Accrual utilities expenses 6,583 8,493 Accrual other expenses 46,478 38,243 Others 4,495 27,290 Total 262,490 279,690 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to the Leases | Supplemental balance sheet information related to the leases re as follows: As of August 31, 2022 2023 RMB RMB ROU assets 1,453,833 1,549,447 Operating lease liabilities – current 104,515 125,447 Operating lease liabilities – non current 1,439,239 1,523,242 Weighted-average remaining lease term 13.45 12.81 Weight-average discount rate 4.17 % 4.14 % |
Schedule of Components of Lease Costs | The components of lease costs of these operating leases from continuing operations are as follow: For the year ended 2022 2023 RMB RMB Operating lease cost for fixed payments 187,653 160,986 Short - term lease costs 8,414 5,869 Variable lease costs 2,324 13,320 Total lease costs 198,391 180,175 |
Schedule of Supplemental Cash Flow Information Related to the Operating Leases | Supplemental cash flow information related to the operating leases is as follows: For the year ended 2022 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases 182,205 167,987 |
Schedule of Maturities of the Operating Lease Liabilities | The following table provides the maturities of the operating lease liabilities as of August 31, 2023: Operating leases Fiscal year ending August 2024 191,105 August 2025 177,214 August 2026 171,639 August 2027 156,129 August 2028 148,018 August 2029 and thereafter 1,277,410 Total future undiscounted lease payments 2,121,515 Less: imputed interest 472,826 Total present value of operating lease liabilities 1,648,689 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Revenue [Abstract] | |
Schedule of Disaggregation of Revenue | Disaggregation of revenue For the year ended August 31, 2021 2022 2023 RMB RMB RMB Tuition income from education programs 343,468 405,990 477,909 Tuition income from complementary training courses 229,011 286,891 331,805 Meal income from education service 259,190 358,643 359,971 Boarding income from education service 88,600 145,077 290,812 Commission income 119,565 148,154 200,169 Consulting service income 113,426 125,365 173,283 Operation service income - 59,702 41,824 Camp service income 29,225 26,355 83,599 Other revenues 225,653 161,560 169,808 Less: sales tax 6,358 3,772 5,429 Total 1,401,780 1,713,965 2,123,751 |
Schedule of Contract Balances | Contract balances As of August 31, 2022 2023 RMB RMB Accounts receivable, net of allowance 18,084 19,209 Contract liabilities - Current 516,731 541,683 Non-current contract liabilities 2,203 2,116 Refund liabilities 20,517 17,572 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Share-Based Compensation [Abstract] | |
Schedule of Share Option Movements | For the year ended August 31, 2023, the share options movement were as follows: Number of Weighted Weighted average Weighted average Aggregate US$ US$ US$ As of August 31, 2022 684,574 8.74 5.29 10.92 - Granted — — — Forfeited/Cancelled (28,449 ) 8.74 4.29 Outstanding as of August 31, 2023 656,125 8.74 4.29 11.08 - Vested and exercisable as of August 31, 2023 656,125 8.74 4.29 11.08 - |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense consisted of the following: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Current income tax expense: PRC 113,045 64,352 56,432 Hong Kong 23,665 29,923 20,926 US 2,633 2,455 450 Canada - 44 - Deferred income tax (benefit) expense: PRC (2,716 ) (3,749 ) 17,318 Canada (49 ) 67 (261 ) US - (28 ) 8,050 UK (42,402 ) (34,145 ) 83,003 Total income tax expense: 94,176 58,919 185,918 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Group’s deferred tax assets and liabilities were as follows: As of August 31, 2022 2023 RMB RMB Deferred tax assets: Net operating loss carry-forward 184,081 201,482 Less: valuation allowance (98,978 ) (199,672 ) Total deferred tax assets 85,103 1,810 Deferred tax liabilities: Intangible assets 21,707 21,893 Withholding tax - 20,200 Total deferred tax liabilities 21,707 42,093 |
Schedule of Movement in Valuation Allowance | Movement in valuation allowance is as follows: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Beginning balance 61,448 98,081 98,978 Additions from acquisition 2,070 - - Additions 46,488 14,442 181,280 Decrease from disposal of subsidiaries - - (8,244 ) Reversal (11,789 ) (13,293 ) (41,141 ) Expired (136 ) (252 ) (31,201 ) Ending balance 98,081 98,978 199,672 |
Schedule of Reconciliation Between Provision for Income Taxes | Reconciliation between the provision for income taxes computed by applying the PRC EIT rates of 25% in year 2021, 2022 and 2023 to income before income taxes and the actual provision for income tax were as follows: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Net loss before provision for income tax after elimination adjustment (439,952 ) (604,871 ) (200,566 ) PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate (109,988 ) (151,218 ) (50,142 ) Effect of intercompany transactions between continuing and discontinued operations 154,947 - - Effect of expenses that are not deductible in determining taxable profit* 66,668 180,404 107,020 Unrecognized tax losses 46,488 14,442 181,280 Utilization of tax losses previously not recognized (11,789 ) (13,293 ) (41,141 ) Effect of tax rate difference from tax holiday and statutory rate in other jurisdictions (51,815 ) 7,604 (36,275 ) Withholding tax expense** - 25,000 20,200 Impact of change in tax rate in UK - - 2,797 Others (335 ) (4,020 ) 2,179 Income tax expense recognized in profit or loss 94,176 58,919 185,918 Note*: Included in the expenses that are not deductible in determining taxable profit were primarily related to impairment loss, share based compensation and non-deductible expenses arose from Overseas Schools. Note**: The Enterprise Income Tax Law and its implementation rules also impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends receivable by non-PRC-resident enterprises from PRC-resident enterprises in respect of earnings accumulated beginning on January 1, 2008. As of August 31, 2022, the Group has recorded RMB 25,000 for dividend withholding tax related to the distributed earnings of Zhuhai Bright Scholar to its immediate holding company Time Education China Holdings Limited located in Hong Kong. As of August 31, 2023, the Group expects to distribute a portion of the earnings (RMB 202,000) of Zhuhai Bright Scholar to Time Education China Holdings Limited, and hence accrued a withholding tax of RMB 20,200 at the year end. The remaining undistributed earnings of the Company’s PRC subsidiaries are intended to be permanently reinvested, and accordingly, no deferred tax liabilities have been provided for the PRC dividend withholding taxes that would be payable upon the distribution of those amounts to the Company. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | For the year ended August 31, 2021 2022 2023 RMB RMB RMB Numerator used in basic and diluted earnings/(loss) per share: Net loss attributable to Bright Scholar Education Holdings Limited from continuing operations (540,768 ) (709,340 ) (395,134 ) Net income attributable to Bright Scholar Education Holdings Limited from discontinued operations 487,963 - - Net loss attributable to Bright Scholar Education Holdings Limited shareholders (52,805 ) (709,340 ) (395,134 ) Shares (denominator): Weighted average ordinary shares outstanding used in calculating earnings/(loss) per share—basic and diluted 119,220,331 118,697,495 118,669,795 Net earnings/(loss) per share attributable to ordinary shareholders — basic and diluted: Net loss from continuing operations attributable to ordinary shareholders (4.54 ) (5.98 ) (3.33 ) Net income from discontinued operations attributable to ordinary shareholders 4.09 - - Net loss attributable to Bright Scholar Education Holdings Limited shareholders (0.45 ) (5.98 ) (3.33 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Major Related Parties and their Relationships with the Group | The table below sets forth the major related parties and their relationships with the Group: Name of related parties Relationship with the group Foshan Shunde Country Garden Property Development Co., Ltd. Entities controlled by Ms. Huiyan Yang (“Ms. H”)* Huidong Country Garden Real Estate Development Co., Ltd. Entities controlled by Ms. H* Guangdong Phoenix Holiday International Travel Service Co., Ltd. Entities controlled by Ms. H* Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. Entities controlled by Ms. H* Guangdong Teng An Mechanics and Electrics Engineering Co., Ltd. Entities controlled by Ms. H* Guangdong Chengjia Design Co., Ltd. Entities controlled by Ms. H* Guangdong Elite Architectural Co., Ltd. Entities controlled by Ms. H* Guangdong Biyouwei Catering Co., Ltd. Entities controlled by Ms. H* Kaiping Country Garden Property Development Co., Ltd. Entities controlled by Ms. H* Chuzhou Country Garden Property Development Co., Ltd. Entities controlled by Ms. H* Dongguan World Expo Xintiandi Property Investment Co., Ltd. Entities controlled by Ms. H* Shaoguan Shunhong Real Estate Development Co., Ltd. Entities controlled by Ms. H* Fine Nation Group Limited Entities controlled by the immediate family of Ms. H* Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. Non-controlling interest shareholder of a subsidiary of the Group Name of Affected Entities BGY Education Investment and its affiliates** Entities controlled by Ms. Meirong Yang, the shareholder of the Group Phoenix City Bilingual Kindergarten and other non-for-profit Kindergartens** Entities controlled by Ms. Meirong Yang, the shareholder of the Group Note*: Ms. H served as the chairperson for the year ended August 31, 2021 and 2022.The Board has accepted Ms. H’s resignation and appointed Mr. Hongru Zhou as the chairman of the Board on November 29, 2022, the appointment is effective on November 30, 2022. Note**: These entities were deconsolidated on August 31, 2021 due to the effectiveness of the Implementation Rules stated in Note 2(a), and became the related parties of the Group since September 1, 2021. |
Schedule of Transactions with Related Parties | Details of related party transactions in continuing operations for the years ended August 31, 2021, 2022 and 2023 are as follows: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Purchases of services and materials provided by other entities controlled by Ms. H are as below Foshan Shunde Country Garden Property Development Co., Ltd. 1,328 4,456 4,254 Huidong Country Garden Real Estate Development Co., Ltd. 2,969 1,623 7,050 Guangdong Phoenix Holiday International Travel Service Co., Ltd. - - 237 Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. 380 - - Dongguan World Expo Xintiandi Property Investment Co., Ltd. - - 3,560 Others 1,576 2,751 2,649 Total 6,253 8,830 17,750 For the year ended August 31, 2021 2022 2023 RMB RMB RMB Construction services provided by other entities controlled by the Ms. H are as below Guangdong Teng An Mechanics and Electrics Engineering Co., Ltd. 603 - - Guangdong Chengjia Design Co., Ltd. 680 339 133 Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. - 1,910 - Others - 3 - Total 1,283 2,252 133 For the year ended August 31, 2021 2022 2023 RMB RMB RMB Interest expense paid to the related parties are as below Fine Nation Group Limited (1) - 6,946 - BGY Education Investment (2) - 4,172 - Total - 11,118 - (1) On July 22, 2022, the Group issued a Promissory Note (the “Note”) to Fine Nation Group Limited with a principal amount of USD 130,000 (approximately RMB 877,487) at an interest rate of 7.45% per annum. As of August 31, 2022, the Note had been fully offset with the Group’s short-term investments in accordance to the agreement among the Group, Fine Nation Group Limited and the investment management institution. (2) On July 12, 2022, the Group borrowed a short term loan from BGY Education Investment amounting to RMB 480,000 at an interest rate of 7.45% per annum, which had been fully paid as of August 31, 2022. For the year ended August 31, 2021 2022 2023 RMB RMB RMB Property and equipment disposed to the related parties are as below BGY Education Investment (1) - 57,998 - (1) On February 28, 2022, the Group has disposed of property and equipment to BGY Education Investment in total consideration of RMB 57,998, which is equal to the carrying amount of theses property and equipment as of the transaction date. For the year ended August 31, 2021 2022 2023 RMB RMB RMB Services provided to other entities controlled by Ms. H are as below Phoenix City Bilingual Kindergarten and other non-for-profit Kindergartens (1) - 53,197 26,434 Kaiping Country Garden Property Development Co., Ltd. 1,013 - - Guangdong Biyouwei Catering Co., Ltd. 755 97 - Foshan Shunde Country Garden Property Development Co., Ltd. 424 - - Others 650 - - Total 2,842 53,294 26,434 (1) The amount represented the management fees charged for the provision of services to the Phoenix City Bilingual Kindergarten and other non-for-profit kindergartens. (1) The amounts mainly represent the acquisition payable paid on behalf of BGY Education Investment and its affiliates, and the receivables from disposal of property and equipment to BGY Education investment. (2) The amounts represent the expense paid on behalf of Shaoguan Shunhong Real Estate Development Co., Ltd.. For the year ended August 31, 2023, the Group provided a full allowance for it. (3) The amounts mainly represent the receivables of providing consulting services on pre-opening schools to Kaiping Country Garden Property Development Co., Ltd.. For the year ended August 31, 2023, the Group provided a full allowance for it. |
Schedule of Amounts Owed from and to Related Parties | The following table presents amounts owed from and to related parties as of August 31, 2022 and 2023: As of August 31, 2022 2023 RMB RMB Amounts due from related parties BGY Education Investment and its affiliates (1) 185,366 190,404 Shaoguan Shunhong Real Estate Development Co., Ltd. (2) 10,000 10,000 Kaiping Country Garden Property Development Co., Ltd. (3) 1,060 1,060 Others 772 380 Less: allowance for Amounts due from related parties (572 ) (13,399 ) Total 196,626 188,445 (1) The amounts mainly represent the acquisition payable paid on behalf of BGY Education Investment and its affiliates, and the receivables from disposal of property and equipment to BGY Education investment. (2) The amounts represent the expense paid on behalf of Shaoguan Shunhong Real Estate Development Co., Ltd.. For the year ended August 31, 2023, the Group provided a full allowance for it. (3) The amounts mainly represent the receivables of providing consulting services on pre-opening schools to Kaiping Country Garden Property Development Co., Ltd.. For the year ended August 31, 2023, the Group provided a full allowance for it. As of August 31, 2022 2023 RMB RMB Amounts due to related parties BGY Education Investment and its affiliates (1) 307,587 265,745 Chuzhou Country Garden Property Development Co., Ltd. (2) 30,769 30,769 Huidong Country Garden Real Estate Development Co., Ltd. (3) 1,833 7,713 Others 2,843 7,224 Total 343,032 311,451 As of August 31, 2022 2023 RMB RMB Other non-current liabilities due to related parties Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. (4) 11,197 - Total 11,197 - (1) The amounts mainly represent the acquisition payables to BGY Education Investment and its affiliates for the acquisition of certain PRC subsidiaries under common control in fiscal year 2021. (2) The amounts mainly represent financing funds from other entities controlled by Ms. H, for the purpose of maintaining daily operation of certain schools. (3) The amounts represent the rental payables to Huidong Country Garden Property Development Co., Ltd. for certain short-term leases. (4) The amounts represent the acquisition payables to Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. for the acquisition of Leti in fiscal year 2021 (Note 4). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Capital Commitments Under Non-Cancelable Contracts | As of August 31, 2022 and 2023, future minimum capital commitments under non-cancelable contracts were as follows: As of August 31, 2022 2023 RMB RMB Capital commitment for construction of schools 10,764 4,610 Capital commitment for an equity method investment 208,866 208,866 Total 219,630 213,476 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Non controlling Interest [Abstract] | |
Schedule of Changes in Non-Controlling Interests | The following table summarizes the changes in non-controlling interests from August 31, 2020 through August 31, 2023. Can-achieve Xinqiao Group Chengdu Yinzhe Wuhan Sannew Hangzhou Impression Linstitute Others Total RMB RMB RMB RMB RMB RMB RMB RMB Balance at August 31, 2020 121,870 34,039 74,435 72,994 27,138 28,573 27,402 386,451 Capital injection from non-controlling interest shareholders — — — — — — 1,370 1,370 Income/(loss) attributable to non-controlling interests 277 (34,039 ) 77 (72,994 ) (916 ) 8,730 (14,133 ) (112,998 ) Foreign currency translation 66 — — — — — (175 ) (109 ) Acquisition of a subsidiary (Note 4) — — — — — — 18,012 18,012 Acquisition of additional interest in a subsidiary of non-controlling interests* — — (14,980 ) — — — — (14,980 ) Distribution of dividends to non-controlling interest shareholders (14,330 ) — — — (1,053 ) (2,314 ) — (17,697 ) Balance at August 31, 2021 107,883 — 59,532 — 25,169 34,989 32,476 260,049 Capital injection from non-controlling interest shareholders — — — — — — 6,160 6,160 (Loss)/income attributable to non-controlling interests (351 ) — 2,694 — 183 7,099 (3,822 ) 5,803 Foreign currency translation 83 — — — — — — 83 Acquisition of additional interest in a subsidiary of non-controlling interests* — — (12,183 ) — — — (6,798 ) (18,981 ) Distribution of dividends to non-controlling interest shareholders — — (12,522 ) — (1,451 ) (8,802 ) (4,698 ) (27,473 ) Balance at August 31, 2022 107,615 — 37,521 — 23,901 33,286 23,318 225,641 Capital injection from non-controlling interest shareholders 5 — — — — — 760 765 Income/(loss) attributable to non-controlling interests 915 — 2,213 — 384 10,104 (5,305 ) 8,311 Foreign currency translation (54 ) — — — — — — (54 ) Disposal of a subsidiary to an entity under common control — — — — — — 2,181 2,181 Acquisition of additional interest in a subsidiary of non-controlling interests* — — (12,895 ) — — (6,991 ) — (19,886 ) Distribution of dividends to non-controlling interest shareholders (26,177 ) — (9,721 ) — (1,926 ) (15,475 ) (5,005 ) (58,304 ) Exemption for future capital injection — — — — — — (3,607 ) (3,607 ) Balance at August 31, 2023 82,304 — 17,118 — 22,359 20,924 12,342 155,047 During the year ended August 31, 2021, the Company acquired additional 5% of equity interests in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 16,670. The net carrying amount of the acquired non-controlling interests was RMB 14,980 and the difference of RMB 1,690 was charged to additional paid in capital of the Company accordingly. During the year ended August 31, 2022, the Company further acquired additional 5% of equity interests in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 12,708. The net carrying amount of the acquired non-controlling interests was RMB 12,183 and the difference of RMB 525 was charged to additional paid in capital of the Company accordingly. During the year ended August 31, 2023, the Company further acquired additional 5% of equity interest in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 12,741. The net carrying amount of the acquired non-controlling interests was RMB 12,895 and the difference of RMB (154) was charged to additional paid in capital of the Company accordingly. As of August 31, 2023, the equity interest of the Company in Chengdu Yinzhe is 90%. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Segment Information (Tables) [Line Items] | |
Schedule of Revenue and Operating Results by Segments | For the year ended August 31, 2021 Continuing operations Overseas Schools Complementary Domestic Total RMB RMB RMB RMB Revenue 502,607 625,640 273,533 1,401,780 Costs of revenue (513,871 ) (382,548 ) (283,844 ) (1,180,263 ) Segment gross (loss)/profit (11,264 ) 243,092 (10,311 ) 221,517 Continuing operations Overseas Schools Complementary Domestic Total RMB RMB RMB RMB Revenue 652,773 636,615 424,577 1,713,965 Costs of revenue (574,744 ) (373,753 ) (288,809 ) (1,237,306 ) Segment gross profit 78,029 262,862 135,768 476,659 Continuing operations Overseas Schools Complementary Domestic Total RMB RMB RMB RMB Revenue 809,488 845,970 468,293 2,123,751 Costs of revenue (657,099 ) (511,799 ) (357,521 ) (1,526,419 ) Segment gross profit 152,389 334,171 110,772 597,332 |
Schedule of Table Presents Long-Lived Assets from Continuing Operations Including Property and Equipment, Net, and Operating Lease Right-of-Use Assets | The following table presents total revenues from continuing operations for the years ended August 31, 2021, 2022 and 2023 from a geographical perspective: For the year ended August 31, 2021 2022 2023 RMB RMB RMB Revenues from sales originated: China ** 911,562 1,099,735 1,354,874 Canada 9,265 7,013 3,263 US 61,641 89,309 112,840 UK 419,312 517,908 652,774 Total 1,401,780 1,713,965 2,123,751 ** Includes mainland China and Hong Kong. |
Long-Lived Assets [Member] | |
Segment Information (Tables) [Line Items] | |
Schedule of Table Presents Long-Lived Assets from Continuing Operations Including Property and Equipment, Net, and Operating Lease Right-of-Use Assets | The following table presents long-lived assets from continuing operations including property and equipment, net, and operating lease right-of-use assets as of August 31, 2022 and 2023 from a geographical perspective: As of August 31, 2022 2023 RMB RMB China ** 250,623 226,418 US 320,437 378,691 UK 1,276,050 1,358,563 Total 1,847,110 1,963,672 ** Includes mainland China and Hong Kong. |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - Schedule of Principal Subsidiaries and VIE Subsidiaries and Schools - VIEs [Member] | 12 Months Ended |
Aug. 31, 2023 | |
Impetus Investment Limited ("Impetus") [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | Cayman |
Date of establishment | Apr. 01, 2014 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Zhuhai Bright Scholar [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Jan. 24, 2017 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Management consulting service |
Time Education China Holdings Limited [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | Hong Kong |
Date of establishment | Aug. 16, 2013 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Bright Scholar (Enlightenment) Investment Holdings Limited [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | Cayman |
Date of establishment | Dec. 27, 2017 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Shenzhen Qianhai Xingkeyucai Trading Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Dec. 15, 2016 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Complementary education services |
Can-achieve (Beijing) Education Consulting Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | May 14, 2008 |
Equity interest attributed to the Group as of August 31, 2023 | 70% |
Principal activities | Complementary education services |
Guangdong Bright Scholar Education Technology Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Sep. 26, 2017 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Complementary education services |
Guangdong Zhixing Weilai Logistics Management Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Oct. 24, 2018 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Complementary education services |
Bright Scholar (UK) Holdings Limited [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | UK |
Date of establishment | Jul. 31, 2018 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
CATS Colleges Holdings Limited [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | UK |
Date of establishment | Mar. 13, 2019 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Cambridge Arts and Science Limited [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | UK |
Date of establishment | Oct. 23, 1997 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Overseas education services |
The Worthgate School Canterbury (previously known as CATS Canterbury Limited) [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | UK |
Date of establishment | Aug. 29, 2007 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Overseas education services |
Guildhouse School London (previously known as CATS College London Limited) [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | UK |
Date of establishment | Nov. 17, 2010 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Overseas education services |
CATS Academy Boston Inc. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | US |
Date of establishment | Jul. 05, 2012 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Overseas education services |
Foshan Meiliang Education Technology Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Aug. 13, 2021 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Foshan Zhiliang Education Technology Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Aug. 13, 2021 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Beijing Boteng Consulting Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Jun. 01, 2021 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Foshan Shangtai Education Technology Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Aug. 13, 2021 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Foshan Renliang Education Technology Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Aug. 12, 2021 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Foshan Yongliang Education Technology Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Aug. 13, 2021 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Investment holding |
Dongguan Qingxi Country Garden Kindergarten [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Jan. 09, 2018 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Kindergarten education services |
Chengdu Pidu Bright Scholar Kindergarten [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Sep. 11, 2020 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Kindergarten education services |
Guangzhou Zengcheng Fettes College Kindergarten Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Sep. 15, 2020 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Kindergarten education services |
Beijing Huanxue International Travel Limited [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Oct. 16, 2020 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Complementary education services |
Foshan Shunde Shengbo Culture and Arts Training Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Jul. 16, 2015 |
Equity interest attributed to the Group as of August 31, 2023 | 100% |
Principal activities | Complementary education services |
Chengdu Laizhe Education and Technology Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Nov. 12, 2013 |
Equity interest attributed to the Group as of August 31, 2023 | 90% |
Principal activities | Complementary education services |
Shanghai Huodai Business Information Consulting Co., Ltd. [Member] | |
Major wholly owned subsidiaries: | |
Place of establishment | PRC |
Date of establishment | Dec. 14, 2017 |
Equity interest attributed to the Group as of August 31, 2023 | 60% |
Principal activities | Complementary education services |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Net cash outflow | ¥ 2,912,290,000 | |||
Consolidated revenue | 21.40% | 21.40% | 19.10% | 70.60% |
Consolidated total assets | 12.60% | |||
Consolidated total liabilities | 19% | |||
Consolidated total assets | 12% | 12% | ||
Consolidated total liabilities | 18.70% | 18.70% | ||
Cash and cash equivalents and restricted cash denominated | ¥ 366,560,000 | ¥ 468,184,000 | ||
Foreign currency translation exchange rate | US$1.00=RMB7.2582 | US$1.00=RMB7.2582 | ||
Impairment loss on goodwill | ¥ 207,830,000 | 419,805,000 | ¥ 84,730,000 | |
Impairment loss on definite lived intangible assets | 2,052,000 | |||
Operating lease right-of-use assets | 928,284,000 | 872,143,000 | ||
Operating lease liabilities | 964,043,000 | 896,994,000 | ||
Rental discount, amounting | 981,000 | |||
impairment loss on operating lease right-of-use assets | 8,861,000 | 15,575,000 | ||
Impairment loss on property and equipment | 12,891,000 | $ 1,776 | 6,586,000 | |
Impairments loss on operating lease right-of-use assets | 205,200 | |||
Operating income discontinued operations | 5,441,000 | |||
Deferred Compensation Plan Assets | ¥ 2,578,000 | |||
Indefinite-Lived Intangible Assets [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Impairment loss on indefinite lived intangible assets | (113,385,000) | |||
Accounting Standards Update 2016-02 [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Rental discount, amounting | 4,479,000 | |||
Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Voting interest rate | 20% | 20% | ||
Impairment of Long-Lived Assets [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Impairment loss on indefinite lived intangible assets | ||||
Other Operating Income (Expense) [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Operating income | 9,049,000 | ¥ 2,256,000 | ¥ 20,213,000 | |
Impairment of Long-Lived Assets [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
impairment loss on operating lease right-of-use assets | ||||
Business Acquisition [Member] | Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Voting interest rate | 50% | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Amounts and Balances of Bgy Education Investment - BGY Education Investment and its Affiliates [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | ||
Current assets | ||||
Cash and cash equivalents | ¥ 139,913 | ¥ 142,642 | ||
Restricted cash, net | 18,740 | 10,410 | ||
Accounts receivable, net | 8,097 | 2,416 | ||
Other receivables, deposits and other assets | 39,025 | 16,884 | ||
Inventories | 4,334 | 5,748 | ||
Total current assets | 214,257 | 188,475 | ||
Restricted cash - non current | 1,650 | 1,650 | ||
Property and equipment, net | 36,799 | 46,747 | ||
Intangible assets, net | 34,656 | 44,137 | ||
Goodwill, net | 167,100 | 227,814 | ||
Long-term investments | 27,676 | 30,289 | ||
Prepayments for construction contract | 950 | 4,025 | ||
Operating lease right-of-use assets –non current | 63,131 | 76,607 | ||
Other non-current assets, net | 6,151 | 6,311 | ||
Total non-current assets | 338,113 | 437,580 | ||
TOTAL ASSETS | 552,370 | 626,055 | ||
Current liabilities | ||||
Accounts payable | 3,638 | 6,154 | ||
Amounts due to related parties | 255,453 | 294,164 | ||
Accrued expenses and other current liabilities | 74,317 | 27,790 | ||
Income tax payable | 23,422 | 19,983 | ||
Contract liabilities | 111,592 | 107,494 | ||
Refund liabilities | 7,606 | 9,458 | ||
Operating lease liabilities – current | 22,365 | 20,779 | ||
Total current liabilities | 498,393 | 485,822 | ||
Non-current portion of contract liabilities | 1,147 | 1,108 | ||
Deferred tax liabilities, net | 7,375 | 9,551 | ||
Operating lease liabilities – non current | 64,013 | 72,464 | ||
Other non-current liabilities due to related parties | 11,197 | |||
Total non-current liabilities | 72,535 | 94,320 | ||
Total liabilities | 570,928 | 580,142 | ||
Revenue from continuing operations of the New VIEs | 455,476 | 327,573 | ¥ 311,373 | |
Revenue from discontinued operations of Affected Entities | 2,303,339 | |||
Net income from continuing operation of the New VIEs after elimination of intercompany transactions | 1,876 | 45,770 | 30,335 | |
Net income from discontinued operations of Affected Entities (Note 3) after elimination of intercompany transactions | 369,343 | |||
Net cash provided by operating activities | 141,875 | 36,096 | 555,679 | |
Net cash used in investing activities | [1] | (68,610) | (54,677) | (2,893,644) |
Net cash provided by/(used in) financing activities | (67,664) | 26,281 | (42,844) | |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 5,601 | 7,700 | (2,380,809) | |
Cash and cash equivalents and restricted cash at beginning of year | 154,702 | 147,002 | 2,527,811 | |
Cash and cash equivalents and restricted cash at end of year | 160,303 | 154,702 | ¥ 147,002 | |
Related Party [Member] | ||||
Current assets | ||||
Amounts due from related parties, net | ¥ 4,148 | ¥ 10,375 | ||
[1]Due to loss of control of the Affected Entities on August 31, 2021, the net cash outflow disclosed in investing activities is RMB 2,912,290. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Property and Equipment Depreciation on Straight-Line Basis | Aug. 31, 2023 | |
Buildings [Member] | Minimum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 20 years | |
Buildings [Member] | Maximum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 50 years | |
Leasehold improvement [Member] | Minimum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 3 years | |
Leasehold improvement [Member] | Maximum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 20 years | |
Motor vehicles [Member] | Minimum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 4 years | |
Motor vehicles [Member] | Maximum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 10 years | |
Electronic equipment [Member] | Minimum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 4 years | |
Electronic equipment [Member] | Maximum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 10 years | |
Office Equipment [Member] | Minimum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 3 years | |
Office Equipment [Member] | Maximum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 5 years | |
Furniture and other equipment [Member] | Minimum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 3 years | |
Furniture and other equipment [Member] | Maximum [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 5 years | |
Others [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | 3 years | |
Construction in Progress [Member] | ||
Schedule of Property and Equipment Depreciation on Straight-Line Basis [Line Items] | ||
Estimated useful lives | [1] | |
[1]The Group constructs certain of its property. In addition to cost under the construction contracts, external costs, including consulting fee directly related to the construction of such facilities, are capitalized. Depreciation is recorded at the time assets are ready for the intended use. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Intangible Asset Classes for Amortization Periods | Aug. 31, 2023 |
Trademarks and brand names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 10 years |
Core curriculum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 10 years |
Customer relationship, backlog and student base [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 7 months 6 days |
Customer relationship, backlog and student base [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 7 years |
Non-compete agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 4 years |
Non-compete agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 8 years |
Discontinued Operations (Detail
Discontinued Operations (Details) ¥ in Thousands | 12 Months Ended |
Aug. 31, 2021 CNY (¥) | |
Discontinued Operations [Abstract] | |
Cash redeemed from continuing operations | ¥ 192,373 |
Cash repaid to continuing operations | ¥ 111,668 |
Discontinued Operations (Deta_2
Discontinued Operations (Details) - Schedule of Reconciliation of the Major Classes of Income and Losses From Discontinued Operations in the Consolidated Statements of Operations and Comprehensive Loss - Discontinued Operations [Member] ¥ in Thousands | 12 Months Ended | |
Aug. 31, 2021 CNY (¥) | ||
Discontinued Operations [Line Items] | ||
Revenue | ¥ 2,303,339 | |
Cost of revenue | (1,315,026) | |
Gross profit | 988,313 | |
Selling, general and administrative expenses | (400,012) | |
Other operating income | 7,604 | |
Operating income | 595,905 | |
Interest expense, net | (695) | |
Investment income | 56,657 | |
Other expenses | (4,180) | |
Income before income taxes and share of equity in loss of unconsolidated affiliate | 647,687 | |
Income tax expense | (16,877) | |
Share of equity in loss of unconsolidated affiliate | (200) | |
Net income (before one-off loss upon deconsolidation of the Affected Entities) | 630,610 | |
One-off loss upon deconsolidation of the Affected Entities, net of tax | (261,267) | |
Net income from discontinued operations | 369,343 | |
Net cash provided by operating activities | 516,873 | |
Net cash provided by investing activities | 137,323 | [1] |
Net cash used in financing activities | ¥ (153,987) | [2] |
[1]The amount of RMB 192,373 cash was redeemed from continuing operations for the year ended August 31, 2021.[2]The amount of RMB 111,668 was repaid to continuing operations for the year ended August 31, 2021. |
Business Combination (Details)
Business Combination (Details) ¥ in Thousands | 12 Months Ended | |||
Aug. 31, 2022 CNY (¥) | Jan. 31, 2021 CNY (¥) | Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | |
Business Combination (Details) [Line Items] | ||||
Additional paid in capital | ¥ 3,607 | |||
Jiangxi Leti Camp Education Technology Co., Ltd. (“Leti”) [Member] | ||||
Business Combination (Details) [Line Items] | ||||
Total consideration | ¥ 26,026 | |||
Unpaid years | 3 years 3 months | |||
Goodwill | 20,874 | |||
Intangible assets | 9,000 | |||
Non-controlling interests | ¥ 18,012 | |||
Cash consideration | ¥ 7,500 | |||
Unpaid amount (in Dollars) | $ | ||||
Jiangxi Leti Camp Education Technology Co., Ltd. (“Leti”) [Member] | ||||
Business Combination (Details) [Line Items] | ||||
Business acquired equity interest | 60% |
Business Combination (Details)
Business Combination (Details) - Schedule of Pro Forma Information - Pro Forma [Member] ¥ in Thousands | 12 Months Ended |
Aug. 31, 2021 CNY (¥) | |
Schedule of Pro Forma Information [Line Items] | |
Pro forma revenue from continuing operations | ¥ 1,406,147 |
Pro forma operating income from continuing operations | 390,843 |
Pro forma net loss attributable to the Group | ¥ (53,253) |
Other Receivables, Deposits a_3
Other Receivables, Deposits and Other Assets (Details) | 12 Months Ended |
Aug. 31, 2023 | |
Other Receivables, Deposits and Other Assets [Abstract] | |
Rental prepayment leases | 12 months |
Other Receivables, Deposits a_4
Other Receivables, Deposits and Other Assets (Details) - Schedule of Other Receivables Deposits and Other Assets - CNY (¥) ¥ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | |
Schedule of Other Receivables Deposits and Other Assets [Abstract] | |||
Other receivables from third parties | ¥ 6,496 | ¥ 7,334 | |
Advances to employees | 2,932 | 4,396 | |
Deposits | 17,140 | 11,949 | |
Prepaid tax and deductible value-added tax-in | 9,479 | 10,035 | |
Rental prepayment | [1] | 23,392 | 28,003 |
Prepayment for suppliers | 51,201 | 45,661 | |
Receivables from disposal of property and equipment | 25,256 | ||
Others | 13,740 | 7,061 | |
Total other receivables, deposits and other assets | 149,636 | 114,439 | |
Less: allowance for other receivables | (957) | (1,677) | |
Total | ¥ 148,679 | ¥ 112,762 | |
[1] Rental prepayment represents the prepayment of rent related to leases less than 12 months. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Property and Equipment, Net (Details) [Line Items] | |||
Depreciation expenses | ¥ 69,003 | ¥ 98,120 | ¥ 188,831 |
Impairment loss | ¥ 12,891 | ¥ 6,586 | |
Discontinued Operations [Member] | |||
Property and Equipment, Net (Details) [Line Items] | |||
Discontinued operations | ¥ 66,126 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment, Net - CNY (¥) ¥ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | ¥ (619,715) | ¥ (531,195) |
Construction in progress | 9,611 | 22,448 |
Property and equipment, net | 414,225 | 393,277 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 315,020 | 254,428 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 376,071 | 336,450 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,982 | 1,839 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 63,000 | 58,425 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 141,750 | 125,630 |
Furniture and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 54,689 | 60,017 |
Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | ¥ 70,817 | ¥ 65,235 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 21, 2023 CNY (¥) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | |
Intangible Assets, Net [Line Items] | |||||
Amortization expenses intangible assets | ¥ 14,916 | ¥ 17,814 | ¥ 30,781 | ||
Estimated amortization expenses for next twelve months | 13,708 | ||||
Estimated amortization expenses for year two | 11,410 | ||||
Estimated amortization expenses for year three | 8,096 | ||||
Estimated amortization expenses for year five | 5,461 | ||||
Estimated amortization expenses for year four | 5,216 | ||||
Estimated amortization expenses thereafter | 9,643 | ||||
Impairment loss | ¥ 2,052 | $ 283 | ¥ 2,052 | ¥ 113,385 | |
Royalty rate percentage | 3.50% | 3.50% | 3.50% | ||
Discount rate percentage | 15.50% | 15.50% | |||
Terminal growth rate percentage | 2% | 2% | 2.30% | ||
Indefinite-Lived Intangible Assets [Member] | |||||
Intangible Assets, Net [Line Items] | |||||
Impairment loss | ¥ 113,385 | ||||
Discontinued Operations [Member] | |||||
Intangible Assets, Net [Line Items] | |||||
Amortization expenses intangible assets | ¥ 14,639 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Assets, Net - CNY (¥) ¥ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Total Cost | ¥ 554,401 | ¥ 517,543 | ||
Total Accumulated amortization | (95,887) | (81,262) | ||
Total Accumulated Impairment | (115,437) | (113,385) | ||
Total Net amount | 343,077 | 322,896 | ||
Indefinite lived Intangible assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost Indefinite lived intangible assets | 402,928 | [1] | 366,070 | |
Accumulated amortization Indefinite lived intangible assets | ||||
Accumulated Impairment Indefinite lived intangible assets | (113,385) | (113,385) | ||
Net amount Indefinite lived intangible assets | 289,543 | 252,685 | ||
Definite lived Intangible assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost Definite lived intangible assets | 50,486 | 50,486 | ||
Accumulated amortization Definite lived intangible assets | (25,342) | (21,148) | ||
Accumulated Impairment Definite lived intangible assets | ||||
Net amount Definite lived intangible assets | 25,144 | 29,338 | ||
Trademarks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost Definite lived intangible assets | 39,016 | 39,016 | ||
Accumulated amortization Definite lived intangible assets | (18,826) | (14,226) | ||
Accumulated Impairment Definite lived intangible assets | (1,569) | |||
Net amount Definite lived intangible assets | 18,621 | 24,790 | ||
Non-compete agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost Definite lived intangible assets | 29,800 | 29,800 | ||
Accumulated amortization Definite lived intangible assets | (22,423) | (18,289) | ||
Accumulated Impairment Definite lived intangible assets | (483) | |||
Net amount Definite lived intangible assets | 6,894 | 11,511 | ||
Student base [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost Definite lived intangible assets | 21,857 | 21,857 | ||
Accumulated amortization Definite lived intangible assets | (19,354) | (18,946) | ||
Accumulated Impairment Definite lived intangible assets | ||||
Net amount Definite lived intangible assets | 2,503 | 2,911 | ||
Others [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost Definite lived intangible assets | [2] | 10,314 | 10,314 | |
Accumulated amortization Definite lived intangible assets | [2] | (9,942) | (8,653) | |
Accumulated Impairment Definite lived intangible assets | [2] | |||
Net amount Definite lived intangible assets | [2] | ¥ 372 | ¥ 1,661 | |
[1]The increase in cost of brand names in 2023 is resulted from the foreign exchange realignment.[2]Others include core curriculum, software, backlog and license. |
Long-Term Investments, Net (Det
Long-Term Investments, Net (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Jun. 01, 2020 CNY (¥) | Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | Aug. 31, 2019 CNY (¥) | Aug. 31, 2018 | Aug. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2020 CNY (¥) | |
Long Term Investments [Line Items] | ||||||||||
Total committed capital | ¥ 1,270,000 | |||||||||
Invested amount | ¥ 36,070 | ¥ 40,486 | ¥ 1,134 | $ 4,970 | ¥ 42,000 | |||||
Equity interest percentage | 19.84% | 19.84% | 10% | 25% | 30% | |||||
Investment loss | ¥ (339) | $ (47) | ¥ (39,747) | (1,018) | ||||||
Cash consideration | 5,000 | ¥ 10,000 | ||||||||
Investment loss | 1,464 | |||||||||
Consideration payable | 251 | |||||||||
Invested | 36,070 | $ 40,486 | ||||||||
Carrying amount | 1,500 | |||||||||
Impairment loss on equity interest | 2,613 | |||||||||
Equity Method Investments [Member] | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Investment loss | 39,596 | 200 | ||||||||
Startcamp [Member] | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Investment loss | 339 | 153 | 998 | |||||||
BOTO [Member] | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Investment loss | 4 | |||||||||
Beijing Cloud Apply Co., Ltd. [Member] | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Equity interest percentage | 46% | |||||||||
Investment loss | ¥ 16 | |||||||||
Sanli Foundation Education Limited [Member] | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Equity interest percentage | 50% | 50% | ||||||||
Investment loss | ¥ 43 | |||||||||
Shanghai Yurong culture and Art Co., Ltd. [Member] | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Equity interest percentage | 18% | |||||||||
Invested | ¥ 21,951 | |||||||||
Chengdu Qingjiao Education Technology Co. [Member] | ||||||||||
Long Term Investments [Line Items] | ||||||||||
Equity interest percentage | 10% |
Long-Term Investments, Net (D_2
Long-Term Investments, Net (Details) - Schedule of Long-Term Investments ¥ in Thousands, $ in Thousands | Aug. 31, 2023 CNY (¥) | Aug. 31, 2022 USD ($) | |
Equity method investments: | |||
Equity method investments | ¥ 36,070 | $ 40,486 | |
Foshan Yingrui Gaoze Equity Investment Partnership (Limited Partnership) (“Gaoze Partnership”) [Member] | |||
Equity method investments: | |||
Equity method investments | [1] | 3,338 | 3,338 |
Startcamp Education Technology Limited ("Startcamp") [Member] | |||
Equity method investments: | |||
Equity method investments | [2] | 7,872 | 8,211 |
BOTO Academic English Co., Ltd. ("BOTO") [Member] | |||
Equity method investments: | |||
Equity method investments | [3] | 1,464 | |
Other Investments [Member] | |||
Equity method investments: | |||
Equity method investments | [4] | 439 | 439 |
Equity securities without readily determinable fair value [Member] | |||
Equity method investments: | |||
Equity method investments | [5] | ¥ 24,421 | $ 27,034 |
[1] On June 1, 2020, Gaoze Partnership was established with the total committed capital of RMB 1,270,000. The Group participates in Gaoze Partnership as a limited partner, and invested RMB 42,000 and RMB 1,134 in fiscal year 2020 and 2021, respectively. The Group accounts for the investment under the equity method in accordance with ASC 323 because the Group is a limited partner and owns 19.84% interest in Gaoze Partnership. The fair value of the underlying investment of Gaoze Partnership is estimated using discounted cash flow model. Loss of RMB 200, RMB 39,596 and RMB nil The Group acquired 25% equity interest in Startcamp for total cash consideration of RMB 10,000 in the year ended August 31, 2019. The Group accounts for the investment under the equity method because the Group has the ability to exercise significant influence but does not have control over the investee. Loss of RMB 998, RMB 153 and RMB 339 were recorded for the years ended August 31, 2021, 2022 and 2023, respectively. The Group holds 30% equity interest in BOTO through acquisition of Can-achieve Education Consultants Co., Ltd. and its subsidiaries (“Can-achieve Group”) in fiscal year 2018. The Group accounts for the investment under the equity method because the Group has the ability to exercise significant influence but does not have control over the investee. Loss of RMB 4 and RMB nil The other investments include 46% equity interest in Beijing Cloud Apply Co., Ltd. and 50% equity interest in Sanli Foundation Education Limited . The Group accounts for these investments under the equity method because the Group has the ability to exercise significant influence but does not have control over the investees. During the year ended August 31, 2022, the Group redeemed its 50% equity interest in Sanli Foundation Education Limited by offsetting the consideration payable of RMB 251, which is equal to the investment cost. Loss of RMB 16, gain of RMB 43 and loss of RMB nil The Group accounted for these equity investments using the measurement alternative when equity method is not applicable and there is no readily determinable fair value for the investments. During the year ended August 31, 2021, the Group acquired 18% equity interest in Shanghai Yurong Culture and Art Co., Ltd. (“Golden Ballet”) for a total cash consideration of RMB 21,951, and redeemed its 10% equity interest in Chengdu Qingjiao Education Technology Co., Ltd. with a total cash consideration of RMB 1,500, which is equal to the investment cost. During year ended August 31, 2022, the Group acquired 10% equity interest in Hurun Baixue (Shanghai) Industrial Co., Ltd for a total cash consideration RMB 5,000. No impairment loss was recorded during the years ended August 31, 2021 and 2022, respectively. During the year ended August 31, 2023, the Group recorded RMB 2,613 of impairment loss on the equity interest of Golden Ballet, representing the difference between the fair value of the investment and its carrying amount. |
Goodwill, Net (Details)
Goodwill, Net (Details) $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | |||
Goodwill, Net (Details) [Line Items] | ||||||
Impairment loss on goodwill (in Yuan Renminbi) | ¥ 207,830,000 | [1] | $ 28,633 | ¥ 419,805,000 | [2] | ¥ 84,730,000 |
Discount rate percenatge | 15% | 15% | 15% | |||
Terminal growth rate percenatge | 2% | 2% | 2.30% | |||
Goodwill (in Yuan Renminbi) | ¥ 712,365 | ¥ 504,535 | ||||
Elan [Member] | ||||||
Goodwill, Net (Details) [Line Items] | ||||||
Impairment loss on goodwill (in Yuan Renminbi) | 51,361,000 | |||||
Chengdu Yinzhe [Member] | ||||||
Goodwill, Net (Details) [Line Items] | ||||||
Impairment loss on goodwill (in Yuan Renminbi) | ¥ 39,840,000 | ¥ 33,369,000 | ||||
Discount rate percenatge | 18% | 18% | ||||
Terminal growth rate percenatge | 2% | 2% | ||||
Can-achieve [Member] | ||||||
Goodwill, Net (Details) [Line Items] | ||||||
Impairment loss on goodwill (in Yuan Renminbi) | ¥ 116,755,000 | |||||
Discount rate percenatge | 17.50% | 17.50% | ||||
Terminal growth rate percenatge | 2% | 2% | ||||
Hangzhou Impression [Member] | ||||||
Goodwill, Net (Details) [Line Items] | ||||||
Impairment loss on goodwill (in Yuan Renminbi) | ¥ 30,361,000 | |||||
Discount rate percenatge | 16.50% | 16.50% | ||||
Terminal growth rate percenatge | 2% | 2% | ||||
Leti Reporting Units [Member] | ||||||
Goodwill, Net (Details) [Line Items] | ||||||
Impairment loss on goodwill (in Yuan Renminbi) | ¥ 20,874,000 | |||||
Leti [Member] | ||||||
Goodwill, Net (Details) [Line Items] | ||||||
Discount rate percenatge | 25% | 25% | ||||
Terminal growth rate percenatge | 2% | 2% | ||||
[1] For the year ended August 31, 2023, the Group performed impairment test of its goodwill. The Group has determined that based on the underperformance, the market conditions and other factors, it was more likely than not that there were indications of impairment for Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units exceeded their respective fair value. Accordingly, the Group recorded RMB 116,755, RMB 39,840, RMB 30,361 and RMB 20,874 as impairment loss on goodwill of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units on the consolidated statement of operations for the year ended August 31, 2023, respectively. The key assumptions used in the annual goodwill impairment assessment for these reporting units are a discount rate of 17.5% (Can-achieve); 18.0% (Chengdu Yinzhe); 16.5% (Hangzhou Impression); 25.0% (Leti); a terminal growth rate of 2.0% (Can-achieve); 2.0% (Chengdu Yinzhe); 2.0% (Hangzhou Impression); 2.0% (Leti); and forecasts future revenues. The impairment is recorded in complementary education services reportable segment. Furthermore, based on the result of the Group’s annual goodwill impairment performed as of August 31, 2023, it is determined that the carrying amount of the Overseas Schools reporting unit did not exceed its fair value, therefore, no impairment loss was recorded. In the Group’s 2023 annual goodwill impairment assessment for the Overseas Schools reporting unit, the key assumptions used are a discount rate of 15.0% (2022: 15.0%), a terminal growth rate of 2.0% (2022: 2.3%) and forecast future revenue. For each of the years ended August 31, 2021 and 2022, the Company performed impairment test of its goodwill. For the year ended August 31, 2021, the Group has determined that based on the underperformance of Elan reporting unit, market conditions and other factors including the adverse impacts from the regulations on after-school tutoring promulgated by the General Office of State Council and the General Office of Central Committee of the Communist Party of China in the fiscal year 2021, it was more likely than not that there were indications of impairment. Furthermore, the Group also has determined that based on the underperformance of the Chengdu Yinzhe reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Elan and Chengdu Yinzhe reporting unit exceeded their respective fair values. Accordingly, the Group recorded RMB 51,361 and RMB 33,369 as impairment loss on goodwill of Elan and Chengdu Yinzhe on the consolidated statement of operations for the year ended August 31, 2021, respectively. The impairment is recorded in complementary education services reportable segment. Based on the results of the Group’s annual goodwill impairment assessment performed as of August 31, 2022 for all of reporting units, it is determined that the carrying amounts of the Group’s goodwill reporting units did not exceed their respective fair values and, therefore, no impairment existed, except for the Overseas Schools reporting unit. The Group has determined that based on the underperformance of the Overseas Schools reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of the Overseas Schools reporting unit exceeded its fair value. Accordingly, the Group recorded RMB 419,805 as impairment loss on goodwill on the consolidated statement of operations for the year ended August 31, 2022. The impairment is recorded in Overseas Schools reportable segment. |
Goodwill, Net (Details) - _Sche
Goodwill, Net (Details) - Schedule of Table Summarizes the Change in the Carrying Amount of Goodwill by Segment ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | |||
Goodwill [Line Items] | ||||||
Opening Balance | ¥ 1,433,916 | ¥ 1,950,186 | ||||
Impairment | (207,830) | [1] | $ (28,633) | (419,805) | [2] | ¥ (84,730) |
Exchange realignment | 102,786 | (96,465) | ||||
Ending Balance | 1,328,872 | $ 183,086 | 1,433,916 | 1,950,186 | ||
Overseas Schools [Member] | ||||||
Goodwill [Line Items] | ||||||
Opening Balance | 704,695 | 1,220,965 | ||||
Impairment | [1] | (419,805) | [2] | |||
Exchange realignment | 102,786 | (96,465) | ||||
Ending Balance | 807,481 | 704,695 | 1,220,965 | |||
Complementary Education Services [Member] | ||||||
Goodwill [Line Items] | ||||||
Opening Balance | 729,221 | 729,221 | ||||
Impairment | (207,830) | [1] | [2] | |||
Exchange realignment | ||||||
Ending Balance | ¥ 521,391 | ¥ 729,221 | ¥ 729,221 | |||
[1] For the year ended August 31, 2023, the Group performed impairment test of its goodwill. The Group has determined that based on the underperformance, the market conditions and other factors, it was more likely than not that there were indications of impairment for Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units exceeded their respective fair value. Accordingly, the Group recorded RMB 116,755, RMB 39,840, RMB 30,361 and RMB 20,874 as impairment loss on goodwill of Can-achieve, Chengdu Yinzhe, Hangzhou Impression and Leti reporting units on the consolidated statement of operations for the year ended August 31, 2023, respectively. The key assumptions used in the annual goodwill impairment assessment for these reporting units are a discount rate of 17.5% (Can-achieve); 18.0% (Chengdu Yinzhe); 16.5% (Hangzhou Impression); 25.0% (Leti); a terminal growth rate of 2.0% (Can-achieve); 2.0% (Chengdu Yinzhe); 2.0% (Hangzhou Impression); 2.0% (Leti); and forecasts future revenues. The impairment is recorded in complementary education services reportable segment. Furthermore, based on the result of the Group’s annual goodwill impairment performed as of August 31, 2023, it is determined that the carrying amount of the Overseas Schools reporting unit did not exceed its fair value, therefore, no impairment loss was recorded. In the Group’s 2023 annual goodwill impairment assessment for the Overseas Schools reporting unit, the key assumptions used are a discount rate of 15.0% (2022: 15.0%), a terminal growth rate of 2.0% (2022: 2.3%) and forecast future revenue. For each of the years ended August 31, 2021 and 2022, the Company performed impairment test of its goodwill. For the year ended August 31, 2021, the Group has determined that based on the underperformance of Elan reporting unit, market conditions and other factors including the adverse impacts from the regulations on after-school tutoring promulgated by the General Office of State Council and the General Office of Central Committee of the Communist Party of China in the fiscal year 2021, it was more likely than not that there were indications of impairment. Furthermore, the Group also has determined that based on the underperformance of the Chengdu Yinzhe reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of Elan and Chengdu Yinzhe reporting unit exceeded their respective fair values. Accordingly, the Group recorded RMB 51,361 and RMB 33,369 as impairment loss on goodwill of Elan and Chengdu Yinzhe on the consolidated statement of operations for the year ended August 31, 2021, respectively. The impairment is recorded in complementary education services reportable segment. Based on the results of the Group’s annual goodwill impairment assessment performed as of August 31, 2022 for all of reporting units, it is determined that the carrying amounts of the Group’s goodwill reporting units did not exceed their respective fair values and, therefore, no impairment existed, except for the Overseas Schools reporting unit. The Group has determined that based on the underperformance of the Overseas Schools reporting unit, market conditions and other factors, it was more likely than not that there were indications of impairment. The Group utilized the discounted cash flow model to estimate the fair value of the reporting units and concluded the carrying amount of the Overseas Schools reporting unit exceeded its fair value. Accordingly, the Group recorded RMB 419,805 as impairment loss on goodwill on the consolidated statement of operations for the year ended August 31, 2022. The impairment is recorded in Overseas Schools reportable segment. |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of Accrued Expenses and Other Current Liabilities - CNY (¥) ¥ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Schedule Of Accrued Expenses And Other Current Liabilities Abstract | ||
Payroll and related benefits | ¥ 99,184 | ¥ 75,750 |
Temporary receipt from students | 12,031 | 51,555 |
Deposits received | 43,687 | 34,940 |
Other tax payable | 4,992 | 17,574 |
Professional fee | 30,991 | 13,297 |
Commission fee | 10,570 | 8,257 |
Accrual rental expense | 4,209 | 3,561 |
Accrual utilities expenses | 8,493 | 6,583 |
Accrual other expenses | 38,243 | 46,478 |
Others | 27,290 | 4,495 |
Total | ¥ 279,690 | ¥ 262,490 |
Short-Term and Long-Term Loans
Short-Term and Long-Term Loans (Details) ¥ in Thousands, £ in Thousands, $ in Thousands | 1 Months Ended | ||||||
Jul. 31, 2022 CNY (¥) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2022 GBP (£) | Aug. 31, 2022 CAD ($) | Jul. 31, 2022 GBP (£) | Aug. 31, 2021 CAD ($) | Apr. 30, 2020 CAD ($) | |
Short-Term and Long-Term Loans [Line Items] | |||||||
Bank deposit pledged | ¥ | ¥ 180,000 | ||||||
Interest free loan amount | $ | $ 40 | ||||||
China Merchants Bank [Member] | |||||||
Short-Term and Long-Term Loans [Line Items] | |||||||
Principal amount of debt | ¥ 156,300 | £ 19,480 | |||||
Annual interest rate | 1.40% | ||||||
Principal amount | 149,239 | £ 18,600 | |||||
Subsidiary of Common Parent [Member] | |||||||
Short-Term and Long-Term Loans [Line Items] | |||||||
Interest free loan amount | ¥ 633 | $ 120 | $ 80 |
Leases (Details)
Leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
ROU [Member] | |||
Leases [Line Items] | |||
Impairment loss | ¥ 8,861 | ¥ 15,575 |
Leases (Details) - _Schedule of
Leases (Details) - Schedule of Supplemental Balance Sheet Information Related to the Leases ¥ in Thousands, $ in Thousands | Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) |
Leases [Abstract] | |||
ROU assets | ¥ 1,549,447 | $ 213,475 | ¥ 1,453,833 |
Operating lease liabilities – current | 125,447 | 17,283 | 104,515 |
Operating lease liabilities – non current | ¥ 1,523,242 | $ 209,865 | ¥ 1,439,239 |
Weighted-average remaining lease term | 12 years 9 months 21 days | 12 years 9 months 21 days | 13 years 5 months 12 days |
Weight-average discount rate | 4.14% | 4.14% | 4.17% |
Leases (Details) - _Schedule _2
Leases (Details) - Schedule of Components of Lease Costs - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost for fixed payments | ¥ 160,986 | ¥ 187,653 |
Short - term lease costs | 5,869 | 8,414 |
Variable lease costs | 13,320 | 2,324 |
Total lease costs | ¥ 180,175 | ¥ 198,391 |
Leases (Details) - _Schedule _3
Leases (Details) - Schedule of Supplemental Cash Flow Information Related to the Operating Leases - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | ¥ 167,987 | ¥ 182,205 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Maturities of the Operating Lease Liabilities ¥ in Thousands | Aug. 31, 2023 CNY (¥) |
Fiscal year ending | |
August 2024 | ¥ 191,105 |
August 2025 | 177,214 |
August 2026 | 171,639 |
August 2027 | 156,129 |
August 2028 | 148,018 |
August 2029 and thereafter | 1,277,410 |
Total future undiscounted lease payments | 2,121,515 |
Less: imputed interest | 472,826 |
Total present value of operating lease liabilities | ¥ 1,648,689 |
Share Capital (Details)
Share Capital (Details) $ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||||||||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2022 CNY (¥) shares | Aug. 31, 2022 USD ($) shares | Aug. 31, 2021 CNY (¥) shares | Aug. 31, 2021 USD ($) shares | Aug. 31, 2020 CNY (¥) shares | Aug. 31, 2020 USD ($) shares | Aug. 31, 2023 USD ($) $ / shares | Aug. 31, 2022 $ / shares | Aug. 19, 2022 | Nov. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Mar. 02, 2018 $ / shares | Dec. 16, 2016 USD ($) $ / shares shares | |
Share Capital Line [Items] | ||||||||||||||
Share capital, par value (in Dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||||||||
Common stock, shares issued | 10 | |||||||||||||
Authorized share capital (in Dollars) | $ | $ 50,000 | |||||||||||||
Common stock, shares authorized | 5,000,000,000 | |||||||||||||
Common stock, price per share (in Dollars per share) | $ / shares | $ 0.00001 | |||||||||||||
Common stock, value (in Dollars) | ¥ 8 | ¥ 8 | $ 1,000 | |||||||||||
Previous ADS ratio | 1 | |||||||||||||
Shares repurchased | ¥ 9,245 | $ 1,530,000 | ||||||||||||
ADS ratio | 4% | |||||||||||||
2019 [Member] | ||||||||||||||
Share Capital Line [Items] | ||||||||||||||
Stock repurchase program, authorized amount (in Dollars) | $ | $ 30,000,000 | |||||||||||||
Number of shares repurchased | 1,096,312 | 1,096,312 | ||||||||||||
Shares repurchased | ¥ 56,058 | $ 8,721,000 | ||||||||||||
Number of shares cancelled and retired | 569,732 | 569,732 | ||||||||||||
2020 [Member] | ||||||||||||||
Share Capital Line [Items] | ||||||||||||||
Stock repurchase program, authorized amount (in Dollars) | $ | $ 50,000,000 | |||||||||||||
Number of shares repurchased | 258,731 | 258,731 | 560,436 | 560,436 | ||||||||||
Shares repurchased | ¥ 24,628 | $ 3,075,000 | ||||||||||||
Number of shares cancelled and retired | 287,358 | 287,358 | 1,058,389 | 1,058,389 | ||||||||||
Class A Ordinary Shares [Member] | ||||||||||||||
Share Capital Line [Items] | ||||||||||||||
Number of voting rights | 1 | |||||||||||||
Share capital, par value (in Dollars per share) | $ / shares | $ 0.0001 | |||||||||||||
Previous ADS ratio | 1 | 1 | 1 | |||||||||||
ADS ratio | 1% | |||||||||||||
Class B Ordinary Shares [Member] | ||||||||||||||
Share Capital Line [Items] | ||||||||||||||
Number of voting rights | 20 | |||||||||||||
American Depositary Shares [Member] | ||||||||||||||
Share Capital Line [Items] | ||||||||||||||
Common stock, price per share (in Dollars per share) | $ / shares | $ 19 | |||||||||||||
Common stock, value (in Dollars) | $ | $ 10,000,000 |
Revenue (Details) - _Schedule o
Revenue (Details) - Schedule of Disaggregation of Revenue ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Less: sales tax | ¥ 5,429 | ¥ 3,772 | ¥ 6,358 | |
Revenue | 2,123,751 | $ 292,600 | 1,713,965 | 1,401,780 |
Tuition income from education programs [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | 477,909 | 405,990 | 343,468 | |
Tuition income from complementary training courses [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | 331,805 | 286,891 | 229,011 | |
Meal income from education service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | 359,971 | 358,643 | 259,190 | |
Boarding income from education service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | 290,812 | 145,077 | 88,600 | |
Commission income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | 200,169 | 148,154 | 119,565 | |
Consulting service income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | 173,283 | 125,365 | 113,426 | |
Operation service income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | 41,824 | 59,702 | ||
Camp service income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | 83,599 | 26,355 | 29,225 | |
Other revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, gross | ¥ 169,808 | ¥ 161,560 | ¥ 225,653 |
Revenue (Details) - _Schedule_2
Revenue (Details) - Schedule of Contract Balances ¥ in Thousands, $ in Thousands | Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) |
Schedule Of Contract Balances Abstract | |||
Accounts receivable, net of allowance | ¥ 19,209 | ¥ 18,084 | |
Contract liabilities - Current | 541,683 | $ 74,630 | 516,731 |
Non-current contract liabilities | 2,116 | $ 292 | 2,203 |
Refund liabilities | ¥ 17,572 | ¥ 20,517 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Compensation [Abstract] | |||||
Share-based payment expenses | ¥ 816 | ¥ 1,865 | |||
Unrecognized compensation expense | ¥ 748 | ¥ 748 | |||
Vesting period | 1 year | 1 year |
Share-Based Compensation (Det_2
Share-Based Compensation (Details) - Schedule of Share Option Movements | 12 Months Ended |
Aug. 31, 2023 USD ($) $ / shares shares | |
Schedule of Share Option Movements [Line Items] | |
Number of share options, Beginning Balance (in Shares) | shares | 684,574 |
Weighted average exercise price, Beginning Balance | $ 8.74 |
Weighted average remaining contractual years, Beginning Balance | 5 years 3 months 14 days |
Weighted average fair value at grant date, Beginning Balance | $ 10.92 |
Aggregate intrinsic value, Beginning Balance (in Dollars) | $ | |
Number of share options, Granted (in Shares) | shares | |
Weighted average exercise price, Granted | |
Weighted average remaining contractual years, Granted | |
Number of share options, Forfeited/Cancelled (in Shares) | shares | (28,449) |
Weighted average exercise price, Forfeited/Cancelled | $ 8.74 |
Weighted average remaining contractual years, Forfeited/Cancelled | 4 years 3 months 14 days |
Number of share options, Ending Balance (in Shares) | shares | 656,125 |
Weighted average exercise price, Ending Balance | $ 8.74 |
Weighted average remaining contractual years, Ending Balance | 4 years 3 months 14 days |
Weighted average fair value at grant date, Ending Balance | $ 11.08 |
Aggregate intrinsic value, Ending Balance (in Dollars) | $ | |
Number of share options, Vested and exercisable (in Shares) | shares | 656,125 |
Weighted average exercise price, Vested and exercisable | $ 8.74 |
Weighted average remaining contractual years, Vested and exercisable | 4 years 3 months 14 days |
Weighted average fair value at grant date, Vested and exercisable | $ 11.08 |
Aggregate intrinsic value, Vested and exercisable (in Dollars) | $ |
Income Tax Expense (Details)
Income Tax Expense (Details) ¥ / shares in Units, $ in Millions | 12 Months Ended | |||||
Apr. 01, 2023 | Aug. 31, 2023 CNY (¥) ¥ / shares | Aug. 31, 2023 HKD ($) | Aug. 31, 2022 CNY (¥) ¥ / shares | Aug. 31, 2021 CNY (¥) ¥ / shares | Aug. 31, 2020 CNY (¥) | |
Income Tax Expense (Details) [Line Items] | ||||||
Income tax rate, percentage | 25% | |||||
Percentage of preferential EIT rate | 25% | 25% | ||||
Requirement percentage | 60% | 60% | ||||
Preferential EIT rate, percentage | 15% | 5% | 5% | 2.50% | 2.50% | 5% |
Earned taxable income should pay for tax (in Yuan Renminbi) | ¥ 1,000 | ¥ 1,000 | ||||
Income tax rate | 10% | |||||
Taxable income and remaining profit (in Yuan Renminbi) | ¥ 1,000 | |||||
Deferred tax assets, valuation allowance (in Yuan Renminbi) | ¥ 199,672,000 | 98,978,000 | ¥ 98,081,000 | |||
Deferred tax assets (in Yuan Renminbi) | 128,781,000 | |||||
Total deferred tax assets (in Yuan Renminbi) | ¥ 1,810 | ¥ 85,103 | ||||
Interest in a domestic subsidiary | 50% | |||||
Income tax position of likelihood being sustained percentage | 50% | |||||
Unrecognized tax benefits | 12 months | |||||
Description of tax liability limitations | According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB 0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. From inception to 2023, the Group is subject to examination of the PRC tax authorities. | According to PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or withholding agent. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined (but an underpayment of tax liability exceeding RMB 0.1 million is specifically listed as a special circumstance). In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. From inception to 2023, the Group is subject to examination of the PRC tax authorities. | ||||
Tax provision percentage | 25% | 25% | 25% | 25% | ||
Withholding tax rate | 10% | 10% | ||||
Dividend withholding tax (in Yuan Renminbi) | ¥ 25,000 | |||||
Earnings portion (in Yuan Renminbi) | 20,200 | |||||
Income tax expense increased (in Yuan Renminbi) | ¥ 8,093 | ¥ 12,397 | ¥ 66,742 | |||
Net earnings per share price (in Yuan Renminbi per share) | ¥ / shares | ¥ 0.1 | ¥ 0.56 | ||||
Net earnings per share, share impact (in Yuan Renminbi per share) | ¥ / shares | ¥ 0.07 | |||||
The US [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Income tax rate, percentage | 21% | 21% | ||||
The UK [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Income tax rate, percentage | 19% | |||||
Canada [Member] | Minimum [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Income tax rate, percentage | 26% | 26% | ||||
Canada [Member] | Maximum [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Income tax rate, percentage | 26.50% | 26.50% | ||||
Hong Kong [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Income tax rate, percentage | 8.25% | 8.25% | ||||
Profits earned by the company (in Dollars) | $ | $ 2 | |||||
Existing tax rate, percentage | 16.50% | 16.50% | ||||
PRC [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Income tax rate, percentage | 25% | 25% | ||||
Percentage of unified tax rate | 25% | 25% | ||||
Percentage of revenue | 60% | 60% | ||||
Percentage of preferential EIT rate | 15% | 15% | ||||
Preferential EIT rate, percentage | 15% | 15% | ||||
Percent of tax reduction | 50% | 50% | ||||
Period of tax reduction | 3 years | 3 years | ||||
Tax loss carry-forward subject to expiration (in Yuan Renminbi) | ¥ 288,316 | ¥ 399,660 | ¥ 396,192 | |||
PRC [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Preferential EIT rate, percentage | 5% | 5% | 5% | |||
Zhuhai Hengqin Bright Scholar Management Consulting Co. Ltd ("Zhuhai Bright Scholar") [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Earnings portion (in Yuan Renminbi) | ¥ 202,000 | |||||
Chengdu Zhi Yi Meng Software Technology Co., Ltd. [Member] | ||||||
Income Tax Expense (Details) [Line Items] | ||||||
Preferential EIT rate, percentage | 12.50% | 12.50% | 12.50% | 12.50% | ||
Percent of tax reduction | 50% | 50% |
Income Tax Expense (Details) -
Income Tax Expense (Details) - Schedule of Income Tax Expense ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | |
Deferred income tax (benefit) expense: | ||||
Total income tax expense: | ¥ 185,918 | $ 25,615 | ¥ 58,919 | ¥ 94,176 |
PRC [Member] | ||||
Current income tax expense: | ||||
Current income tax expense | 56,432 | 64,352 | 113,045 | |
Deferred income tax (benefit) expense: | ||||
Deferred income tax expense | 17,318 | (3,749) | (2,716) | |
Hong Kong [Member] | ||||
Current income tax expense: | ||||
Current income tax expense | 20,926 | 29,923 | 23,665 | |
US [Member] | ||||
Current income tax expense: | ||||
Current income tax expense | 450 | 2,455 | 2,633 | |
Deferred income tax (benefit) expense: | ||||
Deferred income tax expense | 8,050 | (28) | ||
Canada [Member] | ||||
Current income tax expense: | ||||
Current income tax expense | 44 | |||
Deferred income tax (benefit) expense: | ||||
Deferred income tax expense | (261) | 67 | (49) | |
UK [Member] | ||||
Deferred income tax (benefit) expense: | ||||
Deferred income tax expense | ¥ 83,003 | ¥ (34,145) | ¥ (42,402) |
Income Tax Expense (Details) _2
Income Tax Expense (Details) - Schedule of Deferred Tax Assets and Liabilities - CNY (¥) ¥ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Deferred tax assets: | |||
Net operating loss carry-forward | ¥ 201,482 | ¥ 184,081 | |
Less: valuation allowance | (199,672) | (98,978) | ¥ (98,081) |
Total deferred tax assets | 1,810 | 85,103 | |
Deferred tax liabilities: | |||
Intangible assets | 21,893 | 21,707 | |
Withholding tax | 20,200 | ||
Total deferred tax liabilities | ¥ 42,093 | ¥ 21,707 |
Income Tax Expense (Details) _3
Income Tax Expense (Details) - Schedule of Movement in Valuation Allowance - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Schedule Of Movement In Valuation Allowance Abstract | |||
Beginning balance | ¥ 98,978 | ¥ 98,081 | ¥ 61,448 |
Additions from acquisition | 2,070 | ||
Additions | 181,280 | 14,442 | 46,488 |
Decrease from disposal of subsidiaries | (8,244) | ||
Reversal | (41,141) | (13,293) | (11,789) |
Expired | (31,201) | (252) | (136) |
Ending balance | ¥ 199,672 | ¥ 98,978 | ¥ 98,081 |
Income Tax Expense (Details) _4
Income Tax Expense (Details) - Schedule of Reconciliation Between Provision for Income Taxes - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | ||
Schedule Of Reconciliation Between Provision For Income Taxes Abstract | ||||
Net loss before provision for income tax after elimination adjustment | ¥ (200,566) | ¥ (604,871) | ¥ (439,952) | |
PRC statutory tax rate | 25% | 25% | 25% | |
Income tax at statutory tax rate | ¥ (50,142) | ¥ (151,218) | ¥ (109,988) | |
Effect of intercompany transactions between continuing and discontinued operations | 154,947 | |||
Effect of expenses that are not deductible in determining taxable profit | [1] | 107,020 | 180,404 | 66,668 |
Unrecognized tax losses | 181,280 | 14,442 | 46,488 | |
Utilization of tax losses previously not recognized | (41,141) | (13,293) | (11,789) | |
Effect of tax rate difference from tax holiday and statutory rate in other jurisdictions | (36,275) | 7,604 | (51,815) | |
Withholding tax expense | [2] | 20,200 | 25,000 | |
Impact of change in tax rate in UK | 2,797 | |||
Others | 2,179 | (4,020) | (335) | |
Income tax expense recognized in profit or loss | ¥ 185,918 | ¥ 58,919 | ¥ 94,176 | |
[1]Included in the expenses that are not deductible in determining taxable profit were primarily related to impairment loss, share based compensation and non-deductible expenses arose from Overseas Schools.[2]The Enterprise Income Tax Law and its implementation rules also impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends receivable by non-PRC-resident enterprises from PRC-resident enterprises in respect of earnings accumulated beginning on January 1, 2008. As of August 31, 2022, the Group has recorded RMB 25,000 for dividend withholding tax related to the distributed earnings of Zhuhai Bright Scholar to its immediate holding company Time Education China Holdings Limited located in Hong Kong. As of August 31, 2023, the Group expects to distribute a portion of the earnings (RMB 202,000) of Zhuhai Bright Scholar to Time Education China Holdings Limited, and hence accrued a withholding tax of RMB 20,200 at the year end. The remaining undistributed earnings of the Company’s PRC subsidiaries are intended to be permanently reinvested, and accordingly, no deferred tax liabilities have been provided for the PRC dividend withholding taxes that would be payable upon the distribution of those amounts to the Company. |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Non-vested ordinary shares | 656,125 | 684,574 | 759,525 |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details) - Schedule of Earnings Per Share ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 CNY (¥) ¥ / shares shares | Aug. 31, 2023 USD ($) $ / shares shares | Aug. 31, 2022 CNY (¥) ¥ / shares shares | Aug. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator used in basic and diluted earnings/(loss) per share: | ||||
Net loss attributable to Bright Scholar Education Holdings Limited from continuing operations | ¥ (395,134) | ¥ (709,340) | ¥ (540,768) | |
Net income attributable to Bright Scholar Education Holdings Limited from discontinued operations | 487,963 | |||
Net income/(loss) attributable to Bright Scholar Education Holdings Limited shareholders | ¥ (395,134) | $ (54,440) | ¥ (709,340) | ¥ (52,805) |
Shares (denominator): | ||||
Weighted average ordinary shares outstanding used in calculating earnings/(loss) per share—basic | shares | 118,669,795 | 118,669,795 | 118,697,495 | 119,220,331 |
Net loss from continuing operations attributable to ordinary shareholders basic | (per share) | ¥ (3.33) | $ (0.46) | ¥ (5.98) | ¥ (4.54) |
Net income from discontinued operations attributable to ordinary shareholders basic | (per share) | 4.09 | |||
Net income/(loss) attributable to Bright Scholar Education Holdings Limited shareholders basic | (per share) | ¥ (3.33) | $ (0.46) | ¥ (5.98) | ¥ (0.45) |
Earnings (Loss) Per Share (De_3
Earnings (Loss) Per Share (Details) - Schedule of Earnings Per Share (Parentheticals) | 12 Months Ended | |||
Aug. 31, 2023 $ / shares shares | Aug. 31, 2023 ¥ / shares shares | Aug. 31, 2022 ¥ / shares shares | Aug. 31, 2021 ¥ / shares shares | |
Schedule of Earnings Per Share [Abstract] | ||||
Weighted average ordinary shares outstanding used in calculating earnings/(loss) per share—diluted (in Shares) | 118,669,795 | 118,669,795 | 118,697,495 | 119,220,331 |
Net loss from continuing operations attributable to ordinary shareholders diluted | (per share) | $ (0.46) | ¥ (3.33) | ¥ (5.98) | ¥ (4.54) |
Net income from discontinued operations attributable to ordinary shareholders diluted | (per share) | 4.09 | |||
Net income/(loss) attributable to Bright Scholar Education Holdings Limited shareholders diluted | (per share) | $ (0.46) | ¥ (3.33) | ¥ (5.98) | ¥ (0.45) |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jul. 12, 2022 CNY (¥) | Jul. 22, 2022 CNY (¥) | Jul. 22, 2022 USD ($) | Feb. 28, 2022 CNY (¥) | Aug. 31, 2023 CNY (¥) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | |
Related Party Transactions [Line Items] | |||||||
Negotiated price to related parties | ¥ 57,998 | ¥ 57,998 | ¥ 4,745 | ||||
Interest expense | ¥ 11,118 | ||||||
Principal amount | ¥ 877,487 | $ 130,000 | |||||
Short term debt interest rate | 7.45% | 7.45% | 7.45% | ||||
Short term loan from related parties | ¥ 480,000 | ||||||
Construction [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Negotiated price to related parties | 1,427 | ||||||
Discontinued Operations [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Negotiated price to related parties | 508 | ||||||
Services and Materials [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Negotiated price to related parties | 13,863 | ||||||
BGY Education [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Negotiated price to related parties | |||||||
Discontinued Operations [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Negotiated price to related parties | 7,610 | ||||||
Discontinued Operations [Member] | Construction [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Negotiated price to related parties | 144 | ||||||
Negotiated Prices [Member] | |||||||
Related Party Transactions [Line Items] | |||||||
Interest expense |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group | 12 Months Ended | |
Aug. 31, 2023 | ||
Foshan Shunde Country Garden Property Development Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. Huiyan Yang (“Ms. H”)* | [1] |
Huidong Country Garden Real Estate Development Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Guangdong Phoenix Holiday International Travel Service Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Guangdong Teng An Mechanics and Electrics Engineering Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Guangdong Chengjia Design Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Guangdong Elite Architectural Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Guangdong Biyouwei Catering Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Kaiping Country Garden Property Development Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Chuzhou Country Garden Property Development Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Dongguan World Expo Xintiandi Property Investment Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Shaoguan Shunhong Real Estate Development Co., Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. H* | [1] |
Fine Nation Group Limited [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by the immediate family of Ms. H* | [1] |
Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Non-controlling interest shareholder of a subsidiary of the Group | |
BGY Education Investment and its affiliates [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. Meirong Yang, the shareholder of the Group | [2] |
Phoenix City Bilingual Kindergarten and other non-for-profit Kindergartens [Member] | ||
Related Party Transactions (Details) - Schedule of Major Related Parties and their Relationships with the Group [Line Items] | ||
Relationship with the group | Entities controlled by Ms. Meirong Yang, the shareholder of the Group | [2] |
[1]Ms. H served as the chairperson for the year ended August 31, 2021 and 2022.The Board has accepted Ms. H’s resignation and appointed Mr. Hongru Zhou as the chairman of the Board on November 29, 2022, the appointment is effective on November 30, 2022.[2]These entities were deconsolidated on August 31, 2021 due to the effectiveness of the Implementation Rules stated in Note 2(a), and became the related parties of the Group since September 1, 2021. |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Transactions with Related Parties - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | ||
Purchases of services and materials provided by other entities controlled by Ms. H are as below [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | ¥ 17,750 | ¥ 8,830 | ¥ 6,253 | |
Purchases of services and materials provided by other entities controlled by Ms. H are as below [Member] | Foshan Shunde Country Garden Property Development Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 4,254 | 4,456 | 1,328 | |
Purchases of services and materials provided by other entities controlled by Ms. H are as below [Member] | Huidong Country Garden Real Estate Development Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 7,050 | 1,623 | 2,969 | |
Purchases of services and materials provided by other entities controlled by Ms. H are as below [Member] | Guangdong Phoenix Holiday International Travel Service Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 237 | |||
Purchases of services and materials provided by other entities controlled by Ms. H are as below [Member] | Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 380 | |||
Purchases of services and materials provided by other entities controlled by Ms. H are as below [Member] | Dongguan World Expo Xintiandi Property Investment Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 3,560 | |||
Purchases of services and materials provided by other entities controlled by Ms. H are as below [Member] | Others [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 2,649 | 2,751 | 1,576 | |
Construction services provided by other entities controlled by the Ms. H [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 133 | 2,252 | 1,283 | |
Construction services provided by other entities controlled by the Ms. H [Member] | Guangdong Shunde Chuang Xi Bang Sheng Furniture Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 1,910 | |||
Construction services provided by other entities controlled by the Ms. H [Member] | Others [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 3 | |||
Construction services provided by other entities controlled by the Ms. H [Member] | Guangdong Teng An Mechanics and Electrics Engineering Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 603 | |||
Construction services provided by other entities controlled by the Ms. H [Member] | Guangdong Chengjia Design Co., Ltd.[Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 133 | 339 | 680 | |
Interest expense paid to the related parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 11,118 | |||
Interest expense paid to the related parties [Member] | Fine Nation Group Limited [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | [1] | 6,946 | ||
Interest expense paid to the related parties [Member] | BGY Education Investment [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | [2] | 4,172 | ||
Property and equipment disposed to the related parties [Member] | BGY Education Investment [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | [3] | 57,998 | ||
Services provided to other entities controlled by Ms. H [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 26,434 | 53,294 | 2,842 | |
Services provided to other entities controlled by Ms. H [Member] | Foshan Shunde Country Garden Property Development Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 424 | |||
Services provided to other entities controlled by Ms. H [Member] | Others [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 650 | |||
Services provided to other entities controlled by Ms. H [Member] | Phoenix City Bilingual Kindergarten and other non-for-profit Kindergartens [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | [4] | 26,434 | 53,197 | |
Services provided to other entities controlled by Ms. H [Member] | Kaiping Country Garden Property Development Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | 1,013 | |||
Services provided to other entities controlled by Ms. H [Member] | Guangdong Biyouwei Catering Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related parties transaction amount | ¥ 97 | ¥ 755 | ||
[1] On July 22, 2022, the Group issued a Promissory Note (the “Note”) to Fine Nation Group Limited with a principal amount of USD 130,000 (approximately RMB 877,487) at an interest rate of 7.45% per annum. As of August 31, 2022, the Note had been fully offset with the Group’s short-term investments in accordance to the agreement among the Group, Fine Nation Group Limited and the investment management institution. On July 12, 2022, the Group borrowed a short term loan from BGY Education Investment amounting to RMB 480,000 at an interest rate of 7.45% per annum, which had been fully paid as of August 31, 2022. On February 28, 2022, the Group has disposed of property and equipment to BGY Education Investment in total consideration of RMB 57,998, which is equal to the carrying amount of theses property and equipment as of the transaction date. The amount represented the management fees charged for the provision of services to the Phoenix City Bilingual Kindergarten and other non-for-profit kindergartens. |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties - CNY (¥) ¥ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | |
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amount owed from related parties | ¥ 6,496 | ¥ 7,334 | |
Allowance for amounts due from related parties | (13,399) | (572) | |
Amounts due to Affected Entities [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amount owed from related parties | 188,445 | 196,626 | |
Amounts due to Affected Entities [Member] | BGY Education Investment and its Affiliates [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amount owed from related parties | [1] | 190,404 | 185,366 |
Amounts due to Affected Entities [Member] | Kaiping Country Garden Property Development Co., Ltd. [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amount owed from related parties | [2] | 1,060 | 1,060 |
Amounts due to Affected Entities [Member] | Others [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amount owed from related parties | 380 | 772 | |
Amounts Due to Related Parties [Member] | Chuzhou Country Garden Property Development Co., Ltd. [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amount owed from related parties | [3] | 10,000 | 10,000 |
Amounts due to related parties [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amounts due to related parties | 311,451 | 343,032 | |
Amounts due to related parties [Member] | BGY Education Investment and its affiliates [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amounts due to related parties | [4] | 265,745 | 307,587 |
Amounts due to related parties [Member] | Chuzhou Country Garden Property Development Co., Ltd [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amounts due to related parties | [5] | 30,769 | 30,769 |
Amounts due to related parties [Member] | uidong Country Garden Real Estate Development Co., Ltd [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amounts due to related parties | [6] | 7,713 | 1,833 |
Amounts due to related parties [Member] | Others [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amounts due to related parties | 7,224 | 2,843 | |
Other non-current liabilities due to related parties [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amounts due to related parties | 11,197 | ||
Other non-current liabilities due to related parties [Member] | Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. [Member] | |||
Related Party Transactions (Details) - Schedule of Amounts Owed from and to Related Parties [Line Items] | |||
Amounts due to related parties | [7] | ¥ 11,197 | |
[1] The amounts mainly represent the acquisition payable paid on behalf of BGY Education Investment and its affiliates, and the receivables from disposal of property and equipment to BGY Education investment. The amounts mainly represent the receivables of providing consulting services on pre-opening schools to Kaiping Country Garden Property Development Co., Ltd.. For the year ended August 31, 2023, the Group provided a full allowance for it. The amounts represent the expense paid on behalf of Shaoguan Shunhong Real Estate Development Co., Ltd.. For the year ended August 31, 2023, the Group provided a full allowance for it. The amounts mainly represent the acquisition payables to BGY Education Investment and its affiliates for the acquisition of certain PRC subsidiaries under common control in fiscal year 2021. The amounts mainly represent financing funds from other entities controlled by Ms. H, for the purpose of maintaining daily operation of certain schools. The amounts represent the acquisition payables to Gongqingcheng Yuansen Commercial Information Consulting Center Ltd. for the acquisition of Leti in fiscal year 2021 (Note 4). |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Schedule of Future Minimum Capital Commitments Under Non-Cancelable Contracts - CNY (¥) ¥ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Schedule of Future Minimum Capital Commitments Under Non-Cancelable Contracts [Abstarct] | ||
Capital commitment for construction of schools | ¥ 4,610 | ¥ 10,764 |
Capital commitment for an equity method investment | 208,866 | 208,866 |
Total | ¥ 213,476 | ¥ 219,630 |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Minority Interest [Line Items] | |||
Percentage of equity in subsidiaries | 60% | 100% | 5% |
Cash consideration of acquiring equity | ¥ 15,022 | ¥ 30,874 | |
Net carrying amount of the acquired non-controlling interests | 6,991 | 6,798 | |
Additional paid in capital increases from business combination | ¥ 8,031 | ¥ 24,076 | |
Non Controlling Interests [Member] | |||
Minority Interest [Line Items] | |||
Percentage of equity in subsidiaries | 5% | 5% | |
Cash consideration of acquiring equity | ¥ 12,741 | ¥ 12,708 | ¥ 16,670 |
Net carrying amount of the acquired non-controlling interests | 12,895 | 12,183 | 14,980 |
Additional paid in capital increases from business combination | ¥ (154) | ¥ 525 | ¥ 1,690 |
Chengdu Yinzhe [Member] | |||
Minority Interest [Line Items] | |||
Percentage of equity in subsidiaries | 90% | ||
FGE [Member] | |||
Minority Interest [Line Items] | |||
Percentage of equity in subsidiaries | 25% | ||
Linstitute [Member] | |||
Minority Interest [Line Items] | |||
Percentage of equity in subsidiaries | 9% |
Non-Controlling Interests (De_2
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | ||
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests [Line Items] | |||||
Balance beginning | ¥ 225,641 | ¥ 260,049 | ¥ 386,451 | ||
Capital injection from non-controlling interest shareholders | 765 | 6,160 | 1,370 | ||
Disposal of a subsidiary to an entity under common control | 2,181 | ||||
Exemption for future capital injection | (3,607) | ||||
Income/(loss) attributable to non-controlling interests | 8,311 | $ 1,145 | 5,803 | (112,998) | |
Foreign currency translation | (54) | 83 | (109) | ||
Acquisition of subsidiaries | 18,012 | ||||
Acquisition of additional interest in a subsidiary of non-controlling interests* | [1] | (19,886) | (18,981) | (14,980) | |
Distribution of dividends to non-controlling interest shareholders | (58,304) | (27,473) | (17,697) | ||
Balance ending | 155,047 | 225,641 | 260,049 | ||
Can-achieve [Member] | |||||
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests [Line Items] | |||||
Balance beginning | 107,615 | 107,883 | 121,870 | ||
Capital injection from non-controlling interest shareholders | 5 | ||||
Disposal of a subsidiary to an entity under common control | |||||
Exemption for future capital injection | |||||
Income/(loss) attributable to non-controlling interests | 915 | (351) | 277 | ||
Foreign currency translation | (54) | 83 | 66 | ||
Acquisition of subsidiaries | |||||
Acquisition of additional interest in a subsidiary of non-controlling interests* | [1] | ||||
Distribution of dividends to non-controlling interest shareholders | (26,177) | (14,330) | |||
Balance ending | 82,304 | 107,615 | 107,883 | ||
Xinqiao Group [Member] | |||||
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests [Line Items] | |||||
Balance beginning | 34,039 | ||||
Capital injection from non-controlling interest shareholders | |||||
Disposal of a subsidiary to an entity under common control | |||||
Exemption for future capital injection | |||||
Income/(loss) attributable to non-controlling interests | (34,039) | ||||
Foreign currency translation | |||||
Acquisition of subsidiaries | |||||
Acquisition of additional interest in a subsidiary of non-controlling interests* | [1] | ||||
Distribution of dividends to non-controlling interest shareholders | |||||
Balance ending | |||||
Chengdu Yinzhe [Member] | |||||
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests [Line Items] | |||||
Balance beginning | 37,521 | 59,532 | 74,435 | ||
Capital injection from non-controlling interest shareholders | |||||
Disposal of a subsidiary to an entity under common control | |||||
Exemption for future capital injection | |||||
Income/(loss) attributable to non-controlling interests | 2,213 | 2,694 | 77 | ||
Foreign currency translation | |||||
Acquisition of subsidiaries | |||||
Acquisition of additional interest in a subsidiary of non-controlling interests* | [1] | (12,895) | (12,183) | (14,980) | |
Distribution of dividends to non-controlling interest shareholders | (9,721) | (12,522) | |||
Balance ending | 17,118 | 37,521 | 59,532 | ||
Wuhan Sannew [Member] | |||||
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests [Line Items] | |||||
Balance beginning | 72,994 | ||||
Capital injection from non-controlling interest shareholders | |||||
Disposal of a subsidiary to an entity under common control | |||||
Exemption for future capital injection | |||||
Income/(loss) attributable to non-controlling interests | (72,994) | ||||
Foreign currency translation | |||||
Acquisition of subsidiaries | |||||
Acquisition of additional interest in a subsidiary of non-controlling interests* | [1] | ||||
Distribution of dividends to non-controlling interest shareholders | |||||
Balance ending | |||||
Hangzhou Impression [Member] | |||||
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests [Line Items] | |||||
Balance beginning | 23,901 | 25,169 | 27,138 | ||
Capital injection from non-controlling interest shareholders | |||||
Disposal of a subsidiary to an entity under common control | |||||
Exemption for future capital injection | |||||
Income/(loss) attributable to non-controlling interests | 384 | 183 | (916) | ||
Foreign currency translation | |||||
Acquisition of subsidiaries | |||||
Acquisition of additional interest in a subsidiary of non-controlling interests* | [1] | ||||
Distribution of dividends to non-controlling interest shareholders | (1,926) | (1,451) | (1,053) | ||
Balance ending | 22,359 | 23,901 | 25,169 | ||
Linstitute [Member] | |||||
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests [Line Items] | |||||
Balance beginning | 33,286 | 34,989 | 28,573 | ||
Capital injection from non-controlling interest shareholders | |||||
Disposal of a subsidiary to an entity under common control | |||||
Exemption for future capital injection | |||||
Income/(loss) attributable to non-controlling interests | 10,104 | 7,099 | 8,730 | ||
Foreign currency translation | |||||
Acquisition of subsidiaries | |||||
Acquisition of additional interest in a subsidiary of non-controlling interests* | [1] | (6,991) | |||
Distribution of dividends to non-controlling interest shareholders | (15,475) | (8,802) | (2,314) | ||
Balance ending | 20,924 | 33,286 | 34,989 | ||
Other Noncontrolling Interests [Member] | |||||
Non-Controlling Interests (Details) - Schedule of Changes in Non-Controlling Interests [Line Items] | |||||
Balance beginning | 23,318 | 32,476 | 27,402 | ||
Capital injection from non-controlling interest shareholders | 760 | 6,160 | 1,370 | ||
Disposal of a subsidiary to an entity under common control | 2,181 | ||||
Exemption for future capital injection | (3,607) | ||||
Income/(loss) attributable to non-controlling interests | (5,305) | (3,822) | (14,133) | ||
Foreign currency translation | (175) | ||||
Acquisition of subsidiaries | 18,012 | ||||
Acquisition of additional interest in a subsidiary of non-controlling interests* | [1] | (6,798) | |||
Distribution of dividends to non-controlling interest shareholders | (5,005) | (4,698) | |||
Balance ending | ¥ 12,342 | ¥ 23,318 | ¥ 32,476 | ||
[1] During the year ended August 31, 2021, the Company acquired additional 5% of equity interests in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 16,670. The net carrying amount of the acquired non-controlling interests was RMB 14,980 and the difference of RMB 1,690 was charged to additional paid in capital of the Company accordingly. During the year ended August 31, 2022, the Company further acquired additional 5% of equity interests in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 12,708. The net carrying amount of the acquired non-controlling interests was RMB 12,183 and the difference of RMB 525 was charged to additional paid in capital of the Company accordingly. During the year ended August 31, 2023, the Company further acquired additional 5% of equity interest in Chengdu Yinzhe from a non-controlling interest shareholder with total cash consideration of RMB 12,741. The net carrying amount of the acquired non-controlling interests was RMB 12,895 and the difference of RMB (154) was charged to additional paid in capital of the Company accordingly. As of August 31, 2023, the equity interest of the Company in Chengdu Yinzhe is 90%. |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Information [Abstract] | |||
Number of reportable segments | 3 | 3 | 3 |
Segment Information (Details) -
Segment Information (Details) - Schedule of Revenue and Operating Results by Segments - Continuing Operations [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | ¥ 2,123,751 | ¥ 1,713,965 | ¥ 1,401,780 |
Costs of revenue | (1,526,419) | (1,237,306) | (1,180,263) |
Segment gross (loss)/profit | 597,332 | 476,659 | 221,517 |
Overseas Schools [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 809,488 | 652,773 | 502,607 |
Costs of revenue | (657,099) | (574,744) | (513,871) |
Segment gross (loss)/profit | 152,389 | 78,029 | (11,264) |
Complementary Education Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 845,970 | 636,615 | 625,640 |
Costs of revenue | (511,799) | (373,753) | (382,548) |
Segment gross (loss)/profit | 334,171 | 262,862 | 243,092 |
Domestic Kindergartens & K-12 Operation Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 468,293 | 424,577 | 273,533 |
Costs of revenue | (357,521) | (288,809) | (283,844) |
Segment gross (loss)/profit | ¥ 110,772 | ¥ 135,768 | ¥ (10,311) |
Segment Information (Details)_2
Segment Information (Details) - Schedule of Geographical Perspective - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | ||
Revenues from sales originated: | ||||
Revenues | ¥ 2,123,751 | ¥ 1,713,965 | ¥ 1,401,780 | |
China [Member] | ||||
Revenues from sales originated: | ||||
Revenues | [1] | 1,354,874 | 1,099,735 | 911,562 |
Canada [Member] | ||||
Revenues from sales originated: | ||||
Revenues | 3,263 | 7,013 | 9,265 | |
US [Member] | ||||
Revenues from sales originated: | ||||
Revenues | 112,840 | 89,309 | 61,641 | |
UK [Member] | ||||
Revenues from sales originated: | ||||
Revenues | ¥ 652,774 | ¥ 517,908 | ¥ 419,312 | |
[1]Includes mainland China and Hong Kong. |
Segment Information (Details)_3
Segment Information (Details) - Schedule of Table Presents Long-Lived Assets from Continuing Operations Including Property and Equipment, Net, and Operating Lease Right-of-Use Assets - CNY (¥) ¥ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets including property and equipment, net and land use rights, net | ¥ 1,963,672 | ¥ 1,847,110 | |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets including property and equipment, net and land use rights, net | [1] | 226,418 | 250,623 |
US [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets including property and equipment, net and land use rights, net | 378,691 | 320,437 | |
UK [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets including property and equipment, net and land use rights, net | ¥ 1,358,563 | ¥ 1,276,050 | |
[1]Includes mainland China and Hong Kong. |
Contribution Plan (Details)
Contribution Plan (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Contribution Plan [Abstract] | |||
Total contributions, not per employee amount | ¥ 39,859 | ¥ 33,002 | ¥ 166,765 |
Discontinued operations | 139,367 | ||
Contributions for employee benefits | ¥ 32,393 | ¥ 29,434 | ¥ 27,350 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets (Details) ¥ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 CNY (¥) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2021 CNY (¥) | Aug. 31, 2023 USD ($) | |
Statutory Reserves and Restricted Net Assets (Details) [Line Items] | ||||
Percentage of after-tax income | 10% | |||
Percentage of registered capital | 50% | |||
Reserve fund | ¥ 20,155 | ¥ 14,872 | $ 2,777,000 | |
Development fund | ¥ | ||||
Paid in capital (in Dollars) | 161,035 | |||
Statutory reserves (in Dollars) | 39,435 | |||
Restricted cash (in Dollars) | 210,026 | |||
Additional Paid-in Capital [Member] | ||||
Statutory Reserves and Restricted Net Assets (Details) [Line Items] | ||||
Additional paid in capital (in Dollars) | $ 9,556 | |||
Statutory Surplus Reserve Fund [Member] | ||||
Statutory Reserves and Restricted Net Assets (Details) [Line Items] | ||||
Reserve fund | ¥ | ¥ 5,283 | ¥ 12,341 | ¥ 1,909 | |
Private School Sector [Member] | ||||
Statutory Reserves and Restricted Net Assets (Details) [Line Items] | ||||
Percentage of after-tax income | 25% |
Subsequent Event (Details)
Subsequent Event (Details) ¥ in Thousands | Sep. 01, 2023 CNY (¥) |
Subsequent Event [Abstract] | |
Contributed revenue | ¥ 5 |