Skillful Craftsman Education Technology Files Annual Report on Form 20-F and Reports Audited Fiscal Year 2020 Results
- \- 16% year-over-year revenue growth \- 35% year-over-year total fee-paying members growthWUXI, China, Aug. 18, 2020 (GLOBE NEWSWIRE) -- Skillful Craftsman Education Technology Ltd. (“Skillful Craftsman “ or “the Company”) (NASDAQ: EDTK), an education technology company providing interactive online learning services, today filed its annual report on Form 20-F with the U.S. Securities and Exchange Commission (“SEC”) and reported audited financials for the fiscal year ended March 31, 2020. The annual report can be accessed on the SEC’s website at https://www.sec.gov/.Fiscal Year 2020 Financial and Operational Highlights All financial figures are in US Dollars unless otherwise noted. * Revenue was $28.6 million, compared with $24.7 million in the same period of last year, representing a 16% increase. * Net Income was $9.98 million, compared with $8.68 million in the same period of last year. * Total fee-paying members1 reached 3.09 million, compared with 2.28 million during the same period of last year, representing a 35% increase.Xiaofeng Gao, Chairman and CEO of Skillful Craftsman, commented, “We are excited to announce our results for the first time as a public company. Skillful Craftsman went public on the Nasdaq in July 2020 and we view this as a significant milestone in implementing our growth plan. Our strategy centers around expanding course offerings in tune with industry trends and government policies; integrating online and offline resources for virtual simulation experimental training; offering professional development-related services by leveraging Big Data and Artificial Intelligence technologies; and developing mobile app and WeChat interfaces to our online learning platform. We remain dedicated to improving careers by delivering high quality vocational education services, which will enable us to become a leading provider of online vocational education in China.”Fiscal Year 2020 Financial ResultsAll figures refer to fiscal year 2020 (ending March 31, 2020) unless otherwise stated.Revenue increased by 16% to $28.6 million, up from $24.7 million for the prior fiscal year. Growth is primarily attributable to the increase in paid course enrollment, driven by our continual promotional activities and development effort on our virtual simulation experiment platform development.Cost of revenue increased by 25% to $11.8 million from $9.5 million for the prior fiscal year, primarily driven by higher amortization expense for server hardware by $1.8 million, and higher virtual simulation fees paid by the Company of $0.8 million.Gross profit increased by 10% to $16.8 million from $15.2 million for the prior fiscal year.General and administrative expenses increased by 7% to $2.0 million from $1.9 million for the prior fiscal year, primarily driven by increased rental and service fees for human resources.Sales and marketing expenses decreased by 17% to $1.5 million from $1.8 million for the prior fiscal year, primarily driven by decreased pay service charges and promotion expenses.Pre-Tax Income increased by 15% to $13.3 million, compared with $11.6 million for the prior fiscal year.Net Income increased by 15% to $9.98 million, compared with $8.68 million for the prior fiscal year.Cash and equivalents. At March 31, 2020, the Company had cash and cash equivalents of $11.9 million, compared with $10.4 million as of March 31, 2019.About Skillful CraftsmanSkillful Craftsman is an education technology company that provides interactive online vocational training and virtual simulation experiment training courses. The Company was founded in Wuxi, China in 2013 and is a key supporter for China economic development and education reform for labor employment. As of March 31, 2020, the Company had 68.5 million total registered members, of which 3.1 million are fee-paying members.Safe Harbor Statement This report contains “forward-looking statements” for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that represent our beliefs, projections and predictions about future events. All statements other than statements of historical fact are “forward-looking statements,” including any projections of earnings, revenue or other financial items, any statements of the plans, strategies and objectives of management for future operations, any statements concerning proposed new projects or other developments, any statements regarding future economic conditions or performance, any statements of management’s beliefs, goals, strategies, intentions and objectives, and any statements of assumptions underlying any of the foregoing. Words such as “may”, “will”, “should”, “could”, “would”, “predicts”, “potential”, “continue”, “expects”, “anticipates”, “future”, “intends”, “plans”, “believes”, “estimates” and similar expressions, as well as statements in the future tense, identify forward-looking statements.Forward-looking statements are based on information available at the time those statements are made and management’s belief as of that time with respect to future events. These statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievements described in or implied by such statements. Such risks, uncertainties, and other factors include, but are not limited to, [our ability to improve the content of our existing courses, develop new courses or services, leverage new technologies, or anticipate market demand in a timely or cost-effective manner, and those factors discussed under the headings “Risk Factors”, “Operating and Financial Review and Prospects,” and elsewhere in this report. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Actual results may differ materially from expected results described in our forward-looking statements, including with respect to correct measurement and identification of factors affecting our business or the extent of their likely impact, and the accuracy and completeness of the publicly available information with respect to the factors upon which our business strategy is based or the success of our business.. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statement.For more information, please contact:In China:Skillful Craftsman Frank Wang Investor Relations Director Email: iredtk@kingwayedu.cnThe Blueshirt Group Ms. Susie Wang Phone: +86 138-1081-7475 Email: susie@blueshirtgroup.comIn the United States:The Blueshirt Group Ms. Julia Qian Phone: +1 973-619-3227 Email: Julia@blueshirtgroup.com____________1 Number of fee-paying members is defined as the total number of members that are paying fees for accessing our platforms as of the end of the applicable period. SKILLFUL CRAFTSMAN EDUCATION TECHNOLOGY LIMITEDCONSOLIDATED BALANCE SHEETS As of March 31 2020 2019 ASSETS Current assets: Cash and cash equivalents $ 11,931,714 $ 10,362,283 Accounts receivable, net 78,785 451,132 Prepayments and other current assets 1,963,102 902,811 Total current assets 13,973,601 11,716,226 Non-current assets Property and equipment, net 12,324,125 14,022,240 Intangible assets, net 19,294,740 17,799,207 Long-term prepayments and other non-current assets 97,035 - Total non-current assets 31,715,900 31,821,447 TOTAL ASSETS $ 45,689,501 $ 43,537,673 LIABILITIES Current liabilities Accounts payable $ 249,086 $ 10,025 Taxes payable 543,600 375,337 Other payables 227,525 151,545 Deferred revenue-current 16,736,365 15,308,898 Total current liabilities 17,756,576 15,845,805 Non-current liabilities Deferred revenue-noncurrent 50,877 8,672,836 Total non-current liabilities 50,877 8,672,836 TOTAL LIABILITIES $ 17,807,453 $ 24,518,641 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY: Ordinary shares, par value $0.0002 per share, 500,000,000 shares authorized; 9,000,000 shares issued and outstanding 1,800 1,800 Additional paid-in capital 1,619,774 1,619,774 Statutory reserve 745,590 745,590 Accumulated profits 26,921,172 16,945,947 Accumulated other comprehensive (loss): (1,406,288) (294,079) TOTAL SHAREHOLDERS’ EQUITY 27,882,048 19,019,032 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 45,689,501 $ 43,537,673 SKILLFUL CRAFTSMAN EDUCATION TECHNOLOGY LIMITEDCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the years ended March 31, 2020 2019 2018 Revenue$28,601,071 $24,668,840 $14,910,543 Cost of revenue (11,797,870) (9,458,559) (4,715,419) Gross profit 16,803,201 15,210,281 10,195,124 Operating expenses: Selling and marketing expenses (1,520,801) (1,832,006) (1,148,375) General and administrative expenses (2,038,568) (1,899,110) (1,108,280) Total operating expenses (3,559,369) (3,731,116) (2,256,655) Income from operations 13,243,832 11,479,165 7,938,469 Interest income 73,737 88,588 76,324 Others, net (3,458) (195) (114) Income before income taxes 13,314,111 11,567,558 8,014,679 Income tax expense (3,338,886) (2,892,500) (2,004,711) Net profit$9,975,225 $8,675,058 $6,009,968 Other comprehensive (loss): Foreign currency translation adjustment (1,112,209) 735,192 722,635 Total comprehensive income 8,863,016 7,939,866 6,732,603 Net earnings per ordinary share, basic and diluted$1.11 $0.96 $0.67 Weighted average number of ordinary shares, basic and diluted 9,000,000 9,000,000 9,000,000
- 08/18/2020
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