Catherine Du, a non-independent, non-executive director of MindChamps PreSchool, saw her indirect stake rise to 126.6 million shares or 52.16% from 52.13% previously. This increase came after the acquisition of 70,000 shares for $10,500 or 15 cents each on April 6.
Du co-founded the company with executive chairman David Chiem. Du largely holds her shares via her 35.77% interest in a vehicle, Champion Minds, which in turn wholly owns MindChamps Holdings, the controlling shareholder of the listed entity MindChamps PreSchool. In addition to Champion Minds, Du holds another 1.71 million shares via her nominee account with Citibank.
In FY2022 ended Dec 31, 2022, MindChamps PreSchool reported earnings of $2.95 million, up from $2.6 million in FY2021. Revenue stood at $61.5 million, down from $62.7 million, due to unfavourable forex and the absence of one-off government subsidies. As at Dec 31, 2022, the company has a total of 86 centres globally.
In a recent interview with The Edge Singapore, Chiem says that the company has been shifting to an asset-light model and aims to grow by having more franchises using its unique teaching methods, rather than taking on the heavy capex by setting up its own centres. Not long after the company went IPO back in 2017, it had wanted to expand aggressively in China. However, unfavourable regulatory policy stances put that strategy on hold.
Meanwhile, under Chiem, MindChamps PreSchool has been actively looking for other markets such as Australia to grow. On March 30, it announced plans to expand into the US, setting up a joint venture company that will buy 50 franchises from MindChamps at US$70,000 ($93,589) each.
According to MindChamps in its March 30 announcement, the JV partner is owned by a group of existing franchisees of the company and related entities. MindChamps and these partners hold a 50% share each in the JV company.
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“They are experienced MindChamps franchisees who share the same vision on the opportunities of the United States preschool market,” says MindChamps.
“The synergy and alignment of interests of the JV partner are beneficial to the company in the long run as the company kickstarts its US expansion. The joint venture will also allow the company to capitalise on growth opportunities, particularly in the US and unlock the value of the assets in the JV company,” the company adds.
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Boost from concerts
GHY Culture & Media Holding, has resumed its share buybacks this month after a three-month break. The most recent buyback was done on April 14, when the company acquired 5,000 shares at 41 cents each on the open market.
This brings the total under the current mandate to just over 1.85 million, equivalent to 0.173% of the total.
On April 12, GHY bought back 9,300 shares at 40.55 cents each. On April 4, it acquired 11,800 shares for 40.5 cents each and on March 30, it acquired 5,000 shares at 40 cents each. Before this, the most recent buyback by the company was on Jan 26, when it 5,000 shares at 42 cents each.
On March 31, GHY, which produces shows and concerts, announced the acquisition of an 80% interest in Iskandar Malaysia Studios, which runs integrated film and television facilities in JB, Malaysia, for RM8.84 million or $2.65 million.
GHY, whose base of activities has mainly been in China, has previously partnered with IMS for previous productions. “The proposed acquisition is in line with the group’s strategy to expand the international reach and strengthen the regional presence of our TV programme and film production business,” the company states.
For FY2022 ended Dec 31, 2022, the company reported a loss of $10.5 million, versus earnings of $3.5 million recorded in FY2021. Revenue in the same period was down 45% y-o-y to $45.7 million, as the pandemic had disrupted its activities.
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The sole bright spot in FY2022 was GHY’s concert production segment, which was able to make a comeback following a two-year hiatus. Featuring the likes of Jay Chou and Guns N Roses, this business segment generated revenue of $20.3 million and a gross profit of $14.2 million.
“With China’s reopening and further easing of Covid-19 measures in the region, there is much to be optimistic about for FY2023, where we expect to see more growth opportunities with the pent-up demand for concerts and shifting consumer consumption trends for drama content,” says executive chairman Guo Jingyu in his earnings commentary.
