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MindChamps eyes China market, aims to be leading preschool brand globally
MINDCHAMPS PreSchool, the largest premium preschool provider in Singapore and the only listed one here, is planning to have centres operational in China by August 2018.
The move to China is aimed at making the company a leading preschool brand globally, said chairman and group CEO David Chiem at its result briefing on Thursday. China is one of several key markets the company is targeting; other markets include the UK, Australia and the US.
The company's strategy in China is to initially grow by acquisitions before moving on to establish centres, said Mr Chiem.
MindChamps announced on Feb 15 that it was entering a joint venture agreement with Hong Kong-listed China First Capital Group to establish a China Preschool Fund.
The fund is targeting to raise an initial tranche of US$200 million and MindChamps expects to receive future income streams from the fund, including franchise income and royalty fees among others.
MindChamps announced its FY2017 result on the morning of March 1. Net profit for the year ended Dec 31 fell 15 per cent to S$4.6 million, much of it due to higher costs and expenses that offset higher revenue. Earnings per share stood at 2.45 Singapore cents for FY17, as compared to 2.99 Singapore cents in the previous year.
No dividend has been recommended for the current financial period.
MindChamps' revenue for FY17 rose 24 per cent to S$22.8 million, from S$18.4 million in the preceding year, but the group faced higher cost of sales, marketing and administrative expenses from the scaling up of its operations and expansion overseas.
MindChamps now has over 50 preschools and enrichment centres in Singapore, Australia, Abu Dhabi, Dubai and the Philippines. These are mostly franchise owned.