Core Viewpoint - China Liberal Education Holdings Limited reported a significant decline in revenue for fiscal year 2023, primarily due to the termination of Sino-foreign Jointly Managed Academic Programs, yet demonstrated resilience with a high gross margin and growth in specific service areas [2][5]. Financial Performance - Revenue decreased by $2.33 million, or 44.7%, to $2.89 million in fiscal year 2023 from $5.22 million in fiscal year 2022 [3][5]. - Gross profit fell by $2.38 million, or 59.1%, to $1.65 million in fiscal year 2023, with a gross margin of 57.1%, down from 77.2% in the previous year [3][12]. - Net loss increased to $4.96 million in fiscal year 2023, compared to a net loss of $1.69 million in fiscal year 2022 [3][18]. Revenue Breakdown - Revenue from tailored job readiness training services surged by 74.2% to $2.20 million in fiscal year 2023, attributed to contributions from the newly acquired Oriental Wisdom [6][9]. - Revenue from technological consulting services for smart campus solutions increased by 144.5% to $0.68 million, driven by an increase in project size and number [9][12]. - The company did not generate revenue from Overseas Study Consulting Services in fiscal year 2023, a decline from $0.32 million in fiscal year 2022 [8]. Cost and Expenses - Cost of revenue increased by 4.3% to $1.24 million in fiscal year 2023, primarily due to higher costs associated with job readiness training and technological consulting services [11]. - Selling expenses decreased by 18.4% to $0.23 million, while general and administrative expenses fell by 41.2% to $2.68 million, mainly due to reduced share-based compensation [13]. Cash Flow and Financial Condition - As of December 31, 2023, the company had cash of $20.34 million, a significant increase from $12.12 million in the previous year [19]. - Net cash used in operating activities was $3.78 million for fiscal year 2023, contrasting with net cash provided of $0.42 million in fiscal year 2022 [19]. Recent Developments - On December 28, 2023, the company entered into a share transfer agreement to transfer equity interests in Wanwang for $40 million, which is expected to close by June 30, 2024 [20][21].
China Liberal Education Holdings Limited Reports Financial Results for Fiscal Year 2023