New Risk • May 05
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.2% Last year net profit margin: 6.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.3x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.2% net profit margin). Market cap is less than US$100m (HK$562.2m market cap, or US$71.7m). Declared Dividend • May 01
Final dividend reduced to HK$0.005 Dividend of HK$0.005 is 38% lower than last year. Ex-date: 13th May 2026 Payment date: 29th May 2026 Dividend yield will be 5.2%, which is lower than the industry average of 5.9%. Sustainability & Growth Dividend is well covered by both earnings (48% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has decreased over the past 96 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 46% to shift the payout ratio to a potentially unsustainable range, which is more than the 29% EPS decline seen over the last 5 years. Announcement • Apr 16
Virscend Education Company Limited to Report First Half, 2026 Results on Apr 28, 2026 Virscend Education Company Limited announced that they will report first half, 2026 results on Apr 28, 2026 Declared Dividend • Nov 30
Final dividend of HK$0.005 announced Shareholders will receive a dividend of HK$0.005. Ex-date: 27th January 2026 Payment date: 10th February 2026 Dividend yield will be 6.6%, which is higher than the industry average of 5.9%. Sustainability & Growth The dividend has decreased over the past 96 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 46% to shift the payout ratio to a potentially unsustainable range, which is more than the 29% EPS decline seen over the last 5 years. Reported Earnings • Nov 28
Full year 2025 earnings released: EPS: CN¥0.019 (vs CN¥0.015 in FY 2024) Full year 2025 results: EPS: CN¥0.019 (up from CN¥0.015 in FY 2024). Revenue: CN¥1.08b (up 14% from FY 2024). Net income: CN¥57.7m (up 28% from FY 2024). Profit margin: 5.3% (up from 4.7% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Nov 14
Virscend Education Company Limited to Report Fiscal Year 2025 Results on Nov 27, 2025 Virscend Education Company Limited announced that they will report fiscal year 2025 results on Nov 27, 2025 New Risk • Nov 11
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended February 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings have declined by 26% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported February 2025 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (HK$688.8m market cap, or US$88.6m). New Risk • May 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Earnings have declined by 26% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (HK$741.3m market cap, or US$94.6m). Reported Earnings • Apr 29
First half 2025 earnings released: EPS: CN¥0.016 (vs CN¥0.01 in 1H 2024) First half 2025 results: EPS: CN¥0.016 (up from CN¥0.01 in 1H 2024). Revenue: CN¥591.5m (up 14% from 1H 2024). Net income: CN¥49.1m (up 55% from 1H 2024). Profit margin: 8.3% (up from 6.1% in 1H 2024). The increase in margin was driven by higher revenue. Declared Dividend • Apr 27
First half dividend of HK$0.008 announced Shareholders will receive a dividend of HK$0.008. Ex-date: 13th May 2025 Payment date: 29th May 2025 Dividend yield will be 7.4%, which is higher than the industry average of 5.9%. Sustainability & Growth Dividend is well covered by both earnings (35% earnings payout ratio) and cash flows (7% cash payout ratio). The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 61% to shift the payout ratio to a potentially unsustainable range, which is more than the 31% EPS decline seen over the last 5 years. Announcement • Apr 11
Virscend Education Company Limited to Report First Half, 2025 Results on Apr 25, 2025 Virscend Education Company Limited announced that they will report first half, 2025 results on Apr 25, 2025 Announcement • Jan 16
Virscend Education Company Limited Announces Board and Committee Changes Virscend Education Company Limited announced that Mr. Yin Dajia (Mr. Yin) has been appointed as an independent non-executive Director with effect from 16 January 2025. Mr. Yin Dajia, aged 78, has over 50 years of experience in the education industry. Mr. Yin had been teaching at middle schools in Sichuan Province from July 1971 to March 1984. From April 1984 to November 1995, Mr. Yin worked at the Neijiang City Education Science Research Institute as a foreign language researcher and supervisor of the middle school education research division. From November 1995 to July 2000, Mr. Yin served as the supervisor of the recruitment division and the secondary school division of the Sichuan Foreign Language Institute (currently known as Sichuan International Studies University. Mr. Yin joined the Group and served as the Dean of Chengdu Institute Sichuan International Studies University (currently known as Chengdu International Studies University) from April 2004 to September 2020. Mr. Yin was accredited as an Excellent Educator in the Education System in Sichuan Province granted by the Education Department of Sichuan Province and the Human Resource Department of Sichuan Province in September 2007. Mr. Yin was also accredited as the National Outstanding Independent College Educator by the China Independent Institute Association in July 2010. Mr. Yin graduated from the Sichuan Foreign Language Institute (currently known as Sichuan International Studies University) with a bachelor's degree in English in July 1969. The board announced that, following the appointment of Mr. Yin, the below changes in the composition of the Board committees shall take effect from 16 January 2025: (a) Mr. Yin will be appointed as a member of each of the audit committee, the remuneration committee and the nomination committee of the Company; (b) Ms. Wang Xiaoying will cease to be a member of remuneration committee and Mr. Yan Yude will be appointed as a member of remuneration committee of the company; and (c) Mr. Yan Yude will cease to be a member of nomination committee and Ms. Wang Xiaoying will be appointed as a member of nomination committee of the company. Declared Dividend • Dec 04
Final dividend of HK$0.0075 announced Shareholders will receive a dividend of HK$0.0075. Ex-date: 21st January 2025 Payment date: 7th February 2025 Dividend yield will be 6.9%, which is higher than the industry average of 5.9%. Sustainability & Growth The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 45% to shift the payout ratio to a potentially unsustainable range, which is more than the 35% EPS decline seen over the last 5 years. Reported Earnings • Nov 30
Full year 2024 earnings released: EPS: CN¥0.015 (vs CN¥0.011 in FY 2023) Full year 2024 results: EPS: CN¥0.015 (up from CN¥0.011 in FY 2023). Revenue: CN¥955.1m (up 25% from FY 2023). Net income: CN¥45.0m (up 40% from FY 2023). Profit margin: 4.7% (up from 4.2% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 127% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Announcement • Nov 26
Virscend Education Company Limited Announces Demise of Wen Ruizheng, Independent Non-Executive Director and A Member of the Audit Committee, the Remuneration Committee and the Nomination Committee The board (the "Board") of directors (the "Directors") of Virscend Education Company Limited (the "Company") announced with deepest sorrow that Mr. Wen Ruizheng ("Mr. Wen"), an independent non-executive Director and a member of each of the audit committee, the remuneration committee and the nomination committee of the Company, passed away on 25 November 2024. Mr. Wen, an independent non-executive Director, served the Company for many years and made invaluable contributions to the Company during his tenure of office. Announcement • Nov 19
Virscend Education Company Limited to Report Fiscal Year 2024 Results on Nov 29, 2024 Virscend Education Company Limited announced that they will report fiscal year 2024 results on Nov 29, 2024 New Risk • Nov 12
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended February 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.6x net interest cover). Earnings have declined by 47% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported February 2024 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Market cap is less than US$100m (HK$679.5m market cap, or US$87.4m). New Risk • Sep 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$753.7m (US$96.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.6x net interest cover). Earnings have declined by 47% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (HK$753.7m market cap, or US$96.7m). New Risk • Jul 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.6x net interest cover). Earnings have declined by 47% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Reported Earnings • Apr 30
First half 2024 earnings released: EPS: CN¥0.01 (vs CN¥0.008 in 1H 2023) First half 2024 results: EPS: CN¥0.01 (up from CN¥0.008 in 1H 2023). Revenue: CN¥520.4m (up 28% from 1H 2023). Net income: CN¥31.6m (up 35% from 1H 2023). Profit margin: 6.1% (up from 5.8% in 1H 2023). Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 52% per year, which means it is significantly lagging earnings. Announcement • Jan 26
Virscend Education Company Limited Approves Final Dividend for the Year Ended 31 August 2023 Virscend Education Company Limited in its AGM held on January 26, 2024 approved the final dividend of HKD 0.004 per share for the year ended 31 August 2023. Upcoming Dividend • Jan 23
Upcoming dividend of HK$0.011 per share at 2.9% yield Eligible shareholders must have bought the stock before 30 January 2024. Payment date: 09 February 2024. Trailing yield: 2.9%. Lower than top quartile of Hong Kong dividend payers (8.9%). Lower than average of industry peers (5.8%). Announcement • Dec 28
Virscend Education Company Limited, Annual General Meeting, Jan 26, 2024 Virscend Education Company Limited, Annual General Meeting, Jan 26, 2024, at 15:00 China Standard Time. Location: No. 2 Meeting Room, 10th Floor of Chengdu Tianren Hotel, No. 18 Sandongqiao Road, Jinniu District Chengdu Sichuan Province China Agenda: To receive and adopt the audited consolidated financial statements of the Company for the year ended 31 August 2023 and the reports of the directors of the Company and the auditor of the Company therein; to consider directorate reelections; to consider final dividend for the year ended 31 August 2023; to authorize the board of Directors to fix the remuneration of the Directors; to re-appoint Elite Partners CPA Limited as auditor of the Company and authorize the Board to fix its remuneration; and to consider other matters. New Risk • Dec 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 9.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.4x net interest cover). Earnings have declined by 47% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.7% average weekly change). Market cap is less than US$100m (HK$457.1m market cap, or US$58.5m). Reported Earnings • Nov 30
Full year 2023 earnings released: EPS: CN¥0.011 (vs CN¥0.004 in FY 2022) Full year 2023 results: EPS: CN¥0.011 (up from CN¥0.004 in FY 2022). Revenue: CN¥762.3m (up 38% from FY 2022). Net income: CN¥32.3m (up 184% from FY 2022). Profit margin: 4.2% (up from 2.1% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has fallen by 59% per year, which means it is performing significantly worse than earnings. Announcement • Nov 30
Virscend Education Company Limited Proposes Final Dividend for the Year Ended 31 August 2023, Payable on 9 February 2024 Virscend Education Company Limited proposed final dividend of HKD 0.004 per share for the year ended 31 August 2023.Ex-dividend date is 30 January 2024, Record date is 2 February 2024, Payment date is 9 February 2024. Announcement • Nov 18
Virscend Education Company Limited to Report Fiscal Year 2023 Results on Nov 29, 2023 Virscend Education Company Limited announced that they will report fiscal year 2023 results on Nov 29, 2023 New Risk • Nov 14
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended February 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.0x net interest cover). Earnings have declined by 44% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported February 2023 fiscal period end). Large one-off items impacting financial results. Market cap is less than US$100m (HK$379.9m market cap, or US$48.7m). Reported Earnings • Apr 29
First half 2023 earnings released: EPS: CN¥0.008 (vs CN¥0.003 in 1H 2022) First half 2023 results: EPS: CN¥0.008 (up from CN¥0.003 in 1H 2022). Revenue: CN¥407.6m (up 37% from 1H 2022). Net income: CN¥23.5m (up 132% from 1H 2022). Profit margin: 5.8% (up from 3.4% in 1H 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 17 percentage points per year, which is a significant difference in performance. Recent Insider Transactions • Jan 20
COO & Executive Director recently bought HK$58k worth of stock On the 13th of January, Bangkai Deng bought around 453k shares on-market at roughly HK$0.13 per share. This transaction amounted to 70% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Bangkai has been a buyer over the last 12 months, purchasing a net total of HK$107k worth in shares. Reported Earnings • Dec 02
Full year 2022 earnings released Full year 2022 results: Revenue: CN¥551.1m (up 45% from FY 2021). Net income: CN¥11.4m (up CN¥274.6m from FY 2021). Profit margin: 2.1% (up from net loss in FY 2021). The move to profitability was primarily driven by higher revenue. Announcement • Dec 02
Virscend Education Company Limited, Annual General Meeting, Feb 24, 2023 Virscend Education Company Limited, Annual General Meeting, Feb 24, 2023. Announcement • Nov 19
Virscend Education Company Limited to Report 8 Months Period Ending Aug 31, 2022 Results on Nov 30, 2022 Virscend Education Company Limited announced that they will report 8 months, period ending Aug 31, 2022 results on Nov 30, 2022 Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Ruizheng Wen was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Jul 01
Virscend Education Company Limited Announces Resignation of Lau Jeanie as the Company Secretary, with Effect from 30 June, 2022 Virscend Education Company Limited announced that Ms. Lau Jeanie has tendered her resignation as the company secretary of the Company with effect from 30 June, 2022. Announcement • Jun 01
Virscend Education Company Limited Did Not Recommend Interim Dividend for Six Months Ended 28 February 2022 Virscend Education Company Limited did not recommend the payment of interim dividend for six months ended 28 February 2022. Recent Insider Transactions • May 16
CEO & Executive Director recently bought HK$427k worth of stock On the 10th of May, Yude Yan bought around 2m shares on-market at roughly HK$0.24 per share. This was the largest purchase by an insider in the last 3 months. This was Yude's only on-market trade for the last 12 months. Board Change • May 11
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Ruizheng Wen was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment.