Elite Education Group International Ltd. Announces Second Half Fiscal Year 2021 Operations Update

Rhea-AI Summary

Elite Education Group International Limited (Nasdaq: EEIQ) provided an operations update for the second half of its fiscal year ended September 30, 2021. Enrollment for the English Language Program at Miami University of Ohio increased, with 136 students enrolled compared to 134 the previous year, achieving a conversion rate of 36.4%, the highest since 2015. Despite the termination of the agreement with Oxford campus, the company maintains a strong relationship with regional campuses. They plan to expand market reach in China, Canada, and the UK, while ensuring student safety and recruitment amid Covid-19 challenges.

Positive

• Enrollment in the English Language Program increased to 136 students, an uptick from 134 students last year.
• Achieved a conversion rate of 36.4%, the highest since 2015.
• Strong ongoing relationship with the regional campuses of Miami University despite ending agreement with Oxford campus.
• Plans to expand student market in China and educational opportunities in Canada and the UK.

Negative

• The agreement with the Oxford campus is terminated, although it is expected to have minimal financial impact.
• Continued challenges and disruptions due to the Covid-19 pandemic, affecting recruitment efforts.

MIDDLETOWN, Ohio, Oct. 5, 2021 /PRNewswire/ -- Elite Education Group International Limited (Nasdaq: EEIQ), a provider of comprehensive, one-stop education solutions for Chinese university students interested in study abroad programs in the US and other countries, today announced an operations update for the second half six months for its fiscal year ended September 30, 2021.

"We maintained consistently strong recruitment and enrollment metrics for the English Language Program at the regional campuses of Miami University of Ohio for the Spring 2022 semester as compared to the year-ago period. We view this as a further return to normalized economic conditions relative to the Covid-19 pandemic which negatively impacted our first half financial results," commented Jianbo Zhang, Chairman and Chief Executive Officer. 

"Miami University of Ohio returned to in-person classes and operations for the Fall 2021 semester. The university requires all students and staff to be vaccinated and face coverings are required indoors. Further, we continued to undertake a comprehensive number of protocols for our students enrolled in the English Language Program at the regional campuses of Miami University of Ohio to ensure our students' safety."

"Although our agreement with the Oxford campus of Miami University of Ohio will end soon, this does not affect our agreement with the regional campuses of Miami University of Ohio. Our contractual relationship with the regional campuses is based on a different approach where we recruit students for study in our English Language Center and then act as a facilitator for them to gain admittance to the regional campuses. We have been working with the regional campuses of Miami University of Ohio for eight years and view our contractual relationship with them as strong and sustainable." 

"We are enthusiastic about expanding our student market in China as well as creating additional educational opportunities for them in other countries such as Canada and the United Kingdom. We are optimistic about the long-term prospects of our sector as study abroad programs continue to have strong appeal for Chinese students and their families who seek premier educational opportunities," Mr. Jianbo Zhang concluded.

Second Half Fiscal 2021 Operations Update

Following the Covid-19 outbreak that occurred in China in late 2019, the Delta variant, a newer strain of Covid-19 has been spreading across the US and now accounts for more than 99% of Covid-19 cases. Although the symptoms of the Delta variant are the same as the original, the Delta variant is much more contagious than the original version of Covid-19. The Covid-19 pandemic has resulted in extensive travel restrictions as well as a global economic downturn, and disrupted the normal operations of many businesses, including ours, and the normal operations of Miami University of Ohio ("MU"), which is the principal university with whom we work to place our students.

With the FDA approval of the Pfizer vaccine, MU announced that it will require all students and staff to be vaccinated unless exempted. Further, face coverings at MU are required indoors at all times regardless of vaccination status. MU returned to in-person classes and operations in the Fall semester of 2021. We undertook a comprehensive number of protocols for students to ensure our students' safety.

As of September 30, 2021, our indicators of recruitment and enrollment for the English Language Program at the regional campuses of MU (the "MU Regional Campuses") are better than those for the period ended September 30, 2020. As of September 30, 2021, 136 students who had been admitted to the English Language Program at the MU Regional Campuses paid full tuition fees as compared to 134 students for the same period in the previous year, and the conversion rate from application to enrollment was 36.4% as compared to 25.7% during the same period in 2020. Even in such a challenging year of student recruitment due to the significant impact of Covid-19, this was our highest conversion rate since 2015 due to our diligent marketing efforts. These strong results are also attributable to our ongoing efforts to offer remote learning through online courses during the pandemic as well as the further development of our foundational programs to deepen our applicant pool. As reported by Fortune.com on August 16, 2021, the number of applications from Chinese students dropped 18% this year for various reasons. While top US universities had not lost Chinese applicants, others struggled with recruiting them. Under such circumstances, we believe that our recruitment metrics are highly competitive with individual universities and to other entities engaged in this space.

As clarification, the recent announcement of the termination of our agreement with the Oxford campus of MU ("MU Oxford") does not affect our contractual relationship with MU Regional Campuses. Our relationship with MU Oxford was based on that of our operating as a service provider based on quotas associated with our recruitment efforts. Due to the terms of the agreement, the Company and its subsidiary did not generate revenue from commissions to supplement the relatively modest flat fee received as per our agreement with MU Oxford. In sum, given the parameters of the agreement, we believe that the termination of the agreement will have only a minimal impact upon our financial results and future growth.

In contrast, our contractual relationship with the MU Regional Campuses is based on our recruiting students for study at its Language Center and acting as a facilitator for our students to attend MU Regional Campuses. This is a marked difference as compared to the MU Oxford agreement as it affords high school students in China the opportunity to pursue international study that may not be available to them otherwise. We have been working with MU Regional Campuses for eight years and view our relationship with them as strong and sustainable.

The health, safety and academic enrichment of our students remain our primary concern. We work diligently to prepare our students for higher education and support them on campus by providing a broad range of services which include Company-owned and operated dormitories, a cafeteria, a gym, student life center, transportation and residential advisors. These facilities are not owned, maintained, operated or are part of MU. Our one-stop solution enables students to apply for and complete study abroad while also helping them with post-graduate studies and employment.

About Elite Education Group International Limited

Elite Education Group International Limited, through its subsidiary Quest Holding International LLC, provides comprehensive, one-stop education solutions for Chinese students who are interested in study abroad programs in the US and other countries. We develop specific education goals for each student enrolled in our program and provide a safe and structured environment to enable students to pursue their academic goals. Our primary study abroad agreement is with Miami University of Ohio (Regional Campuses), and we maintain residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the Middletown and Hamilton campuses that provides a wide range of study abroad and post-study services for our students. These facilities are not owned, maintained, operated or are part of MU. For more information, please visit www.eei-global.net.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, without limitation, whether the conditions associated with the Covid-19 fully normalize in the near-term, whether campus learning will resume, the ability of Chinese and other students to travel to the US, the impact on the Company of the MU Oxford agreement termination, the continued stable macroeconomic environment in which we operate, the overseas study abroad sector continuing to exhibit sound long-term fundamentals, our ability to sustain our current business and expand our services into Canada and the United Kingdom. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our prospectus filed pursuant to Rule 424(b)(4) and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Contacts:

Elite Education Group International Limited
+1 513-649-8350
ir@eei-global.net

Investor Relations:

Precept Investor Relations LLC

David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

Source: Elite Education Group International Limited

SOURCE Elite Education Group International Limited

FAQ

What were the enrollment figures for EEIQ's English Language Program as of September 30, 2021?

As of September 30, 2021, 136 students were enrolled in the English Language Program.

How did the conversion rate for EEIQ's program change compared to last year?

The conversion rate improved to 36.4% from 25.7% in the same period of 2020.

What is the status of EEIQ's agreement with Miami University's Oxford campus?

The agreement with the Oxford campus of Miami University will end soon, but this will have a minimal impact on financial results.

What future plans does EEIQ have for expanding its market?

EEIQ plans to expand its student market in China and explore educational opportunities in Canada and the UK.

How has Covid-19 affected EEIQ's operations?

The Covid-19 pandemic caused recruitment challenges, but enrollment metrics remain competitive.