Quarterly Activity - Cashflow Report
VIG and its controlled entities (the "Group") provides:
- SaaS, IaaS & PaaS services to customers;
- Education cloud platforms which bring together best-in-class resources and applications from strategic partners such as education service and e-learning content providers; and
- A wide range of e-learning solutions for educational institutions, students and parents.
Key areas of activity during the quarter:
- SaaS, IaaS & PaaS service in PRC - VIG operates its cloud services in PRC through its subsidiary, Shenghan (known as Wenhan, company name changed on 20th August 2020). During the quarter, Shenghan achieved $800K in new sales and collected over $2 million receivables. The company spent $1.24 million to purchase an intelligent power supply system including the equipment and software, which will be used for the operational demand of future online education platform usage and data monitoring of its environmental protection project. The cash and cash equivalents position of Shenghan has increased during this quarter, which made the company recover from a previous shortage of cash flow. The Group believes the cash flow of the SaaS, IaaS & PaaS business will remain healthy in the foreseeable future.
- E-learning and cloud education - Shenghan contributed most of the revenue and cash inflow of the E-learning business during the quarter. The company entered CNY 4 million (AUD $800K) in new contracts. VIG commenced the marketing of its online courses and established its own learning platform based on its social media app. The self-built platform can help the company build up its brand and make course delivery stable and smooth.
A summary of revenue and expenditure (cash basis) incurred in respect of the Company's business activities is contained in the link below.
The cash flow from SaaS, IaaS & PaaS segment remained healthy during the quarter. The cash inflow of E-learning & online education business was still mainly incurred in the PRC. The major expenditure of the Australian business was the set-up cost of the local platform and staff costs. The group received $16K job keeper grant in Australia.
The Company has also begun exploring acquisition opportunities of businesses in the Australian education industry which will have a synergistic effect with VIG's existing e-learning business and have the potential to further strengthen the Company's offerings through better serving overseas and local students and trainees who use VIG's education cloud platforms. One of the key goals of the Company is to increase the e-learning content provided through VIG's cloud education platforms to increase VIG's brand, value, and reputation in the marketplace.
Comment on Appendix 4C Cash Flow Report
As we estimated in the last activity report, the turnover of accounts receivable has increased gradually due to the wider economic recovery. The Group anticipates its cash flow will remain healthy and the E-learning & online education business will contribute more to the Group's financial position.
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About Victor Group Holdings Limited
The Victor Group is a consulting firm specialising in providing enterprise management services. They assist the entrepreneurs/management to better manage their company and provide advisory services in relation to most aspects of running a business (e.g. political, financial, legal, technological, behavioural etc.). Its operating model focuses on carrying out large-scale seminars and specific enterprise management consulting courses. Its current business involves providing Enterprise Management Consulting Services (EMCS) which include marketing management training and consulting courses that are currently delivered offline and face to face. Due to the decrease in traditional business and to take advantage of all aspects of modern digitalised business applications, the Victor Group expanded its existing business to various economic development zones in China through internet after the data center acquisition in June 2016.
Victor Group Holdings Limited