Segment Information

12 Months Ended

May 31, 2019

Segment Reporting [Abstract]

Segment Information

24. SEGMENT INFORMATION

The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews financial information of operating segments based on US GAAP amounts when making decisions about allocating resources and assessing performance of the Group. The Group identified seven operating segments, including language training and test preparation, primary and secondary school education, online education, content development and distribution, overseas study consulting services, pre-school education and study tour, for the years ended May 31, 2017, 2018 and 2019. Language training and test preparation has been identified as a reportable segment. Online education, content development and distribution, overseas study consulting services, pre-school education, primary and secondary school education and study tour operating segments were aggregated as others because individually they do not exceed the 10% quantitative threshold.

The Group primarily operates in the PRC and substantially all of the Group’s long-lived assets are located in the PRC.

The Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating cost and expenses, and operating income. Net revenues, operating cost and expenses, operating income, and total assets by segment were as follows:

For the year ended May 31, 2017

	Language training and test preparation courses			Others			Consolidated
	US$			US$			US$
Net revenues		1,510,497			289,012			1,799,509
Operating cost and expenses:
Cost of revenues		(623,364	)		(126,222	)		(749,586	)
Selling and marketing		(146,544	)		(61,919	)		(208,463	)
General and administrative		(363,949	)		(74,723	)		(438,672	)
Unallocated corporate expenses		—			—			(140,639	)
Total operating cost and expenses		(1,133,857	)		(262,864	)		(1,537,360	)
Operating income		376,640			26,148			262,149
Segment assets		1,361,261			606,955			1,968,216
Unallocated corporate assets		—			—			956,763
Total assets		1,361,261			606,955			2,924,979

For the year ended May 31, 2018

	Language training and test preparation courses			Others			Consolidated
	US$			US$			US$
Net revenues		2,022,978			424,452			2,447,430
Operating cost and expenses:
Cost of revenues		(869,012	)		(196,728	)		(1,065,740	)
Selling and marketing		(193,851	)		(99,549	)		(293,400	)
General and administrative		(504,985	)		(108,343	)		(613,328	)
Unallocated corporate expenses		—			—			(212,003	)
Total operating cost and expenses		(1,567,848	)		(404,620	)		(2,184,471	)
Operating income		455,130			19,832			262,959
Segment assets		1,898,504			844,691			2,743,195
Unallocated corporate assets		—			—			1,234,517
Total assets		1,898,504			844,691			3,977,712

For the year ended May 31, 2019

	Language training and test preparation courses			Others			Consolidated
	US$			US$			US$
Net revenues		2,605,829			490,662			3,096,491
Operating cost and expenses:
Cost of revenues		(1,128,355	)		(247,914	)		(1,376,269	)
Selling and marketing		(212,170	)		(145,228	)		(357,398	)
General and administrative		(675,315	)		(149,193	)		(824,508	)
Unallocated corporate expenses		—			—			(236,409	)
Total operating cost and expenses		(2,015,840	)		(542,335	)		(2,794,584	)
Gain on disposal of a subsidiary		—			—			3,627
Operating income (loss)		589,989			(51,673	)		305,534
Segment assets		2,226,344			1,118,884			3,345,228
Unallocated corporate assets		—			—			1,301,331
Total assets		2,226,344			1,118,884			4,646,559