| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements
the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Following
a strategic decision to place greater focus on the Group’s core oversea business, a disposal plan was formed in the early of fiscal
year 2024 to divest the Group’s non-core businesses. The disposals of six business units (collectively referred to as the “Disposal
Group”) were completed during the year ended August 31, 2024. Except for domestic for-profit kindergartens, which belonged to the
Company’s Domestic Kindergartens and K-12 Operation Services segment, the other five businesses belonged to the Company’s
Complementary Education Service segment. The Company’s sales of the Disposal Group represented a strategic business shift having
a major effect on the Group’s operations and financial results. As a result of the strategy to divest the Group’s
non-core businesses, the results of operations for the Disposal Group are presented as discontinued operations on the consolidated statements
of operations and comprehensive loss, and assets and liabilities are reflected as “Assets and Liabilities of Discontinued Operations”
on the consolidated balance sheets for all periods presented. Amounts for all periods discussed below reflect the results of operations,
financial condition and cash flows from the Company’s continuing operations, unless otherwise noted. Refer to Note 3 for further
discussion on the Group’s discontinued operations. (b) Principles of consolidation The consolidated financial statements
include the financial statements of the Company, its subsidiaries, schools, its VIEs and the VIEs’ subsidiaries and schools. All
inter-company transactions and balances have been eliminated upon consolidation. Consolidation of VIEs PRC laws and regulations prohibit foreign
ownership of companies and institutions providing compulsory education services at primary and middle school levels and restrict foreign
investment in education services at the kindergarten and high school level. In addition, the PRC government regulates the provision of
education services through strict licensing requirements. Accordingly, in 2017, the Company,
through its wholly owned subsidiary (the “WFOE”) Zhuhai Hengqin Bright Scholar Management Consulting Co., Ltd. (“Zhuhai
Bright Scholar”), have entered into the following contractual arrangements with Guangdong Country Garden Education Investment Management
Co., Ltd. (“BGY Education Investment”), BGY Education Investment’s subsidiaries and schools, and BGY Education Investment’s
shareholders that enable the Company to (1) have power to direct the activities that most significantly affects the economic performance
of the VIE, and (2) receive the economic benefits of the VIE that could be significant to the VIE (collectively referred to as the
“2017 contractual arrangements”). On May 14, 2021, the General Office
of the State Council of the People’s Republic of China (the “PRC State Council”) announced the issuance of the Implementation
Regulations of the People’s Republic of China on the Law Regarding the Promotion of Private Education (the “Implementation
Rules”), which became effective on September 1, 2021. In response to the Implementation Rules,
a set of supplementary agreements to the contractual arrangements were entered into among Company’s WFOE, Zhuhai Bright Scholar,
BGY Education Investment, BGY Education Investment’s shareholders and six newly established companies in August 2021 to enable them,
as well as their subsidiaries, to entitle to the same power, rights and obligations of the contractual arrangements as BGY Education Investment
(collectively referred to as the “2021 supplemental agreements”). The six newly established companies, including Foshan Meiliang
Education Technology Co., Ltd., Foshan Zhiliang Education Technology Co., Ltd., Beijing Boteng Education Consulting Co., Ltd., Foshan
Shangtai Education Technology Co., Ltd., Foshan Renliang Education Technology Co., Ltd. and Foshan Yongliang Education Technology Co.,
Ltd. (collectively referred to as the “New VIEs”), are owned by the same equity shareholders as BGY Education Investment.
On the same day, the New VIEs obtained the equity interest of the subsidiaries providing complementary education services, operation services
for domestic schools and for-profit kindergartens from BGY Education Investment, which were previously held by BGY Education Investment. To streamline the Group corporate structure, on June 21,
2024, two VIE entities, Foshan Shangtai Education Technology Co., Ltd. and Foshan Renliang Education Technology Co., Ltd., completed their
deregistration process and were liquidated. Both entities were shell companies with nominal net liabilities at the deregistration date.
Related VIE contractual arrangements was unbounded in the deregistration process. On August 31, 2024, an agreement supplementary
to the 2017 contractual arrangements and 2021 supplemental agreements was entered into among Zhuhai Bright Scholar, Ms. Meirong Yang and
Mr. Wenjie Yang, and Foshan Meiliang Education Technology Co., Ltd., (“Foshan Meiliang”) to stipulate that Foshan Meiliang
and its affiliated entities (including nine for-profit kindergartens) are no longer bound by the 2017 contractual arrangements and 2021
supplemental agreements. As of the completion date on August 31, 2024, the net deficit amount of Foshan Meiliang and its affiliated entities
was RMB 71,294. The Company accounted for the difference between the net deficit of Foshan Meiliang and the nominal consideration from
the Company’s shareholders as a deemed contribution from the shareholders and recorded it in additional paid-in capital amounting
to RMB 69,213 and non-controlling interests amounting to RMB 2,081, respectively. Accordingly, the Group had consolidated
the financial position and operating results of BGY Education Investment, new VIEs and its subsidiaries and schools in the consolidated
financial statements of the Company during the year ended August 31, 2021 before the Group lost control over the affected entities and
schools by August 31, 2021 as a result of the effectiveness of the Implementation Rules. The Company’s VIE includes (1) BGY Education
Investment and the schools and subsidiaries it held, prior to August 31, 2021; and (2) the New VIEs and subsidiaries and schools they
hold respectively before and after August 31, 2021, except for Foshan Shangtai Education Technology Co., Ltd., Foshan Renliang Education
Technology Co., Ltd. and Foshan Meiliang Education Technology Co., Ltd. since their respective termination from the contract arrangements. Agreements that provide the Group with
effective control over the VIEs include: Voting Rights Proxy Agreement &
Irrevocable Power of Attorney Under the aforementioned 2021 supplementary
agreements, including supplementary voting right proxy agreement and irrevocable power of attorney, each of the shareholders of New VIEs
has executed a power of attorney to grant Zhuhai Bright Scholar the power of attorney to act on his or her behalf on all matters pertaining
to the New VIEs and to exercise all of his or her rights as a shareholder of the New VIEs, including but not limited to convene, attend
and vote at shareholders’ meetings, designate and appoint directors and senior management members. The proxy agreement will remain
in effect unless Zhuhai Bright Scholar terminates the agreement by giving a prior written notice or gives its consent to the termination
by the New VIEs. Exclusive Call Option
Agreement Under the aforementioned 2021 supplementary
agreements, including the exclusive call option agreement, each of the shareholders of the New VIEs granted Zhuhai Bright Scholar or its
designated representative(s) an irrevocable and exclusive option to purchase their equity interests in the New VIEs when and to the extent
permitted by PRC law. Zhuhai Bright Scholar or its designated representative(s) has sole discretion as to when to exercise such options,
either in part or in full. Without Zhuhai Bright Scholar’s written consent, the shareholders of the New VIEs shall not transfer,
donate, pledge, or otherwise dispose any equity interests of the New VIEs in any way. The acquisition price for the shares or assets will
be the minimum amount of consideration permitted under the PRC law at the time when the option is exercised. The agreement cannot be terminated
by the New VIEs or their shareholders. Equity Pledge Agreement Under the aforementioned 2021 supplementary
agreements including the equity pledge agreement, each of the shareholders pledged all of their equity interests in the New VIEs to Zhuhai
Bright Scholar as collateral to secure their obligations under the equity pledge agreements. If the shareholders of the New VIEs breach
their respective contractual obligations, Zhuhai Bright Scholar, as pledgee, will be entitled to certain rights, including the right to
dispose the pledged equity interests. Pursuant to the agreement, the shareholders of the New VIEs shall not transfer, assign or otherwise
create any new encumbrance on their respective equity interest in the New VIEs without prior written consent of Zhuhai Bright Scholar.
The equity pledge right held by Zhuhai Bright Scholar will expire when the shareholders of the New VIEs and Zhuhai Bright Scholar have
fully performed their respective obligations under the Consulting Services Agreement and Operating Agreement, or the shareholder is no
longer a shareholder of the New VIEs or the satisfaction of all its obligations by the New VIEs under the VIE contractual arrangements. The agreements that transfer economic
benefits of the New VIEs to the Group include: Exclusive Management Services and
Business Cooperation Agreement Under the aforementioned 2021 supplementary
agreements including the exclusive management services and business cooperation agreement, the New VIEs engage Zhuhai Bright Scholar as
their exclusive technical and operational consultant and under which Zhuhai Bright Scholar agrees to assist in business development and
related services necessary to conduct the New VIEs’ operational activities. The New VIEs shall not seek or accept similar services
from other providers without the prior written approval of Zhuhai Bright Scholar. The agreements will be effective as long as the New
VIEs exist. Zhuhai Bright Scholar may terminate this agreement at any time by giving a prior written notice to the New VIEs. Under the above agreements, the shareholders
of the New VIEs irrevocably granted Zhuhai Bright Scholar the power to exercise all voting rights to which they were entitled in the respective
periods. In addition, Zhuhai Bright Scholar has the option to acquire all of the equity interests in the New VIEs, to the extent permitted
by the then-effective PRC laws and regulations, for nominal consideration in the respective periods. Finally, Zhuhai Bright Scholar is
entitled to receive service fees for services to be provided to the New VIEs. The Call Option Agreement and Voting
Rights Proxy Agreement provide the Group with effective control over the New VIEs, while the Equity Pledge Agreements secure the obligations
of the shareholders of the New VIEs under the relevant agreements. Because the Group, through Zhuhai Bright Scholar, has (i) the
power to direct the activities of the New VIEs, that most significantly affect the entity’s economic performance and (ii) the
right to receive substantially all of the benefits from the New VIEs, the Group is deemed the primary beneficiary of the New VIEs. Accordingly,
the Company consolidates the New VIEs’ financial results of operations, assets and liabilities in the Group’s consolidated
financial statements. The Group believes that the contractual
arrangements with the VIEs are in compliance with the PRC law and regulations and are legally enforceable. Risks related contractual arrangements
However, there are uncertainties regarding
the interpretation and application of existing and future PRC laws and regulations. If the ownership structure of the Company and the
contractual arrangements are found to violate any PRC laws or regulations, or if the Company is found to be required but failed to obtain
any of the permits or approvals for its private education business, the relevant PRC regulatory authorities would have broad discretion
in imposing fines or punishments upon the Company for such violations, including:
● revoking the business and operating licenses of the Group
and/or its VIEs;
● discontinuing or restricting any related-party transactions between the Group and its VIEs;
● imposing fines and penalties, or imposing additional requirements for the Group’s operations with which it, or its VIEs may
not be able to comply;
● requiring the Group to restructure the ownership and control structure or its current schools;
● restricting or prohibiting the use of the proceeds of the Company’s equity offerings to finance its business and operations
in China, particularly the expansion of its business through strategic acquisitions; or
● restricting the use of financing sources by the Group or its affiliated entities or otherwise restricting the Group’s or its
VIEs’ ability to conduct business. The Group’s ability to conduct
its business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the
Group may not be able to consolidate the New VIEs in its consolidated financial statements as it may lose the ability to exert effective
control over the New VIEs and their shareholders, and it may lose the ability to receive economic benefits from the New VIEs. The following balances of VIEs as of
August 31, 2023 and 2024, were included in the Group’s consolidated balance sheet after the elimination of intercompany balances,
respectively.
As of August 31,
2023 2024
RMB RMB
ASSETS
Current assets
Cash and cash equivalents 13,147 27,017
Restricted cash - 120
Accounts receivable, net 2,688 2,731
Amounts due from related parties, net 32 -
Other receivables, deposits and other assets, net 7,858 29,507
Inventories 161 355
Total current assets 23,886 59,730
Restricted cash - non-current 250 250
Property and equipment, net 13,550 1,025
Goodwill, net 1,703 1,703
Prepayments for construction contract 950 62
Operating lease right-of-use assets – non-current 3,693 -
Other non-current assets, net 326 378
Total non-current assets 20,472 3,418
TOTAL ASSETS 44,358 63,148
LIABILITIES
Current liabilities
Accounts payable 3,638 2,461
Amounts due to related parties 188,262 33,927
Accrued expenses and other current liabilities 28,003 9,513
Income tax payable 12,534 7,301
Contract liabilities 5,640 883
Refund liabilities 164 30
Operating lease liabilities – current 1,822 -
Total current liabilities 240,063 54,115
Deferred tax liabilities, net 74 -
Operating lease liabilities – non-current 2,025 -
Total non-current liabilities 2,099 -
TOTAL LIABILITIES 242,162 54,115 The following amounts of VIEs for the
years ended August 31, 2022, 2023 and 2024, were included in the Group’s consolidated statements of operations and consolidated
statements of cash flows after the elimination of intercompany balances.
For the year ended August 31,
2022 2023 2024
RMB RMB RMB
Revenue from continuing operations 136,117 194,646 131,626
Revenue from discontinued operations 191,456 260,830 273,579
Net income from continuing operation after elimination of intercompany transactions 41,898 35,455 70,931
Net income/ (loss) from discontinued operations after elimination of intercompany transactions 3,872 (37,331 ) (171,491 )
Net cash provided by operating activities 39,184 107,531 91,090
Net cash (used in)/ provided by investing activities (53,738 ) (68,598 ) 13,170
Net cash provided by/ (used in) financing activities 26,922 (49,528 ) (90,270 )
Net increase in cash and cash equivalents and restricted cash 12,368 (10,595 ) 13,990
Cash and cash equivalents and restricted cash at beginning of year 11,624 23,992 13,397
Cash and cash equivalents and restricted cash at end of year 23,992 13,397 27,387 VIEs contributed an aggregate of 9.5%,
11.0% and 7.5% of the consolidated revenue from continuing operations for the three years ended August 31, 2022, 2023 and 2024, respectively.
As of August 31, 2023, the VIEs accounted for an aggregate of 1.1% of the consolidated total assets, and 9.0% and of the consolidated
total liabilities from continuing operations. And as of August 31, 2024, the VIEs accounted for an aggregate of 2.1% of the consolidated
total assets, and 2.2% and of the consolidated total liabilities. There are no terms in any arrangements,
considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial
support to the VIEs. However, if the VIEs were ever to need financial support, the Group may, at its option and subject to statutory limits
and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. The Group believes that there are no
assets held in the VIEs that can be used only to settle obligations of the VIEs, except for registered capital and the PRC statutory reserves, in
the respective periods. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors of the VIEs do
not have recourse to the general credit of the Company for any of the liabilities of the VIEs. Relevant PRC laws and regulations restrict
the VIEs from transferring a portion of their net assets, equivalent to the balance of its statutory reserve and its share capital, to
the Company in the form of loans and advances or cash dividends. Please refer to Note 21 for disclosure of restricted net assets. (c) Use of estimates The preparation of financial statements
in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results may
differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable
under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that
are not readily apparent from other sources. Significant accounting estimates reflected in the Group’s financial statements include the
consolidation of variable interest entities, impairment assessment of indefinite lived intangible assets, goodwill and long-lived assets
and assessment of realization of deferred tax assets. Actual results may differ materially from those estimates. (d) Fair value Fair value is considered to be the
price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded
at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that
market participants would use when pricing the asset or liability. Authoritative literature provides a
fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level
in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant
to the fair value measurement as follows: Level 1 applies to assets or liabilities
for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities
for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted
prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient
volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can
be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities
for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the
assets or liabilities. The carrying values of short-term financial
instruments, which consist of cash and cash equivalents, restricted cash, accounts receivable, amounts due from related parties, other
receivables, deposits, accounts payable, amounts due to related parties and other current liabilities that are recorded at cost, which
approximate s (e) Foreign currency translation The Group’s reporting currency
is Renminbi (“RMB”). The functional currency of the affiliates incorporated outside of mainland China includes the United
States dollar (“US dollar” or “US$”), Great Britain Pound (“GBP”), Hong Kong dollar (“HKD”
or “HK$”), and Canadian dollar (“CAD”). The functional currency of all the other subsidiaries and the VIEs is
RMB. Monetary assets and liabilities denominated
in currencies other than the applicable functional currencies are translated into the functional currencies at the prevailing rates of
exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical
exchange rates. Exchange gains and losses are recognized in the consolidated statement of operation. All assets and liabilities are translated
at exchange rates at the balance sheet date and revenue and expenses are translated at the average yearly exchange rates and equity is
translated at historical exchange rate. Any translation adjustments are not included in determining net income but are included in foreign
exchange adjustment to other comprehensive income. (f) Foreign currency risk The RMB is not a freely convertible
currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion
of RMB into other currencies. The value of the RMB is subject to changes in central government policies, international economic and political
developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents
and restricted cash denominated in RMB amounted to RMB 225,075 and RMB 249,091 as of August 31, 2023 and 2024, respectively. (g) Convenience translation The Group’s reporting currency
is RMB. However, periodic reports made to shareholders will include current period amounts translated into US dollars using the then current
exchange rates, for the convenience of the readers. Translations of balances in the consolidated balance sheets, and the related consolidated
statements of operations, comprehensive loss, shareholders’ equity and cash flows from RMB into US dollars as of and for the year
ended August 31, 2024 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0900 , (h) Cash and cash equivalents Cash and cash equivalents consist of
cash on hand, cash in banks and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities
of three months or less when purchased. (i) Restricted cash The Group’s restricted cash mainly
represents (a) deposit restricted as to withdrawal or use under government regulations; and (b) deposit held in a designated bank
account for the sole purpose of business operation including the establishment of new subsidiaries. (j) Long-term investments Long-term investments include equity
securities without readily determinable fair values and equity method investments.
● Equity securities without readily determinable fair values The Group elects a practicability exception
to fair value measurement for the equity securities without readily determinable fair values, under which these investments are measured
at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer with fair value
change recorded in the consolidated statements of operations. The Group reviews its equity securities
without readily determinable fair value for impairment at each reporting period. If a qualitative assessment indicates that the investment
is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASU 2011- 4: Fair Value Measurement
(ASC 820). If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the
difference between the carrying value and fair value in the consolidated statements of operations.
● Equity method investments Investee companies over which the Group
has the ability to exercise significant influence, but does not have a controlling interest through investment in ordinary shares or in-substance
ordinary shares, are accounted for using the equity method. Significant influence is generally considered to exist when the Group has
an ownership interest in the voting stock of the investee between 20% and 50%, and other factors, such as representation on the investee’s
board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method
of accounting is appropriate. For certain investment in the limited partnership, the Group’s influence over the partnership operating
and financial policies is determined to be more than minor. Accordingly, the Group accounts for the investment as an equity method investment. Under the equity method, the Group
initially records its investment at cost and subsequently recognizes the Group’s proportionate share of each equity investee’s
net income or loss after the date of investment into the consolidated statements of operations and accordingly adjusts the carrying amount
of the investment. The Group reviews its equity method
investments for impairment whenever an event or circumstance indicates that an other-than-temporary impairment has occurred. The Group
considers available quantitative and qualitative evidence in evaluating potential impairment of its equity method investments. An impairment
charge is recorded when the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. (k) Allowance for doubtful accounts Accounts receivable mainly represents
amounts due from corporate customers of the Group’s various subsidiaries, and amounts due from students of the Group’s UK
schools. The allowance for doubtful accounts is the Group’s best estimates of the amount of probable credit losses in the Group’s
existing accounts receivable balance. The Group provides allowance for doubtful accounts based on historical credit loss experience and
a review of the current status and reasonable and supportable forecasts of future events and economic conditions. Accounts receivable,
other receivables and amounts due from related parties are presented net of allowance for doubtful accounts. (l) Inventories Inventories are stated at the lower
of cost or net realizable value. (m) Property and equipment, net Property and equipment is generally
stated at historical cost and depreciated on a straight-line basis over the estimated useful lives of the assets. Depreciation expense
is included in either cost of revenue or selling, general and administrative expenses, as appropriate. Property and equipment consist
of the following and depreciation is calculated on a straight-line basis over the following estimated useful lives:
Buildings 20 - 50 years
Leasehold improvement 3 - 20 years or the lesser of remaining life of lease
Motor vehicles 4 - 10 years
Electronic equipment 4 - 10 years
Office equipment 3 - 5 years
Furniture and other equipment 3 - 5 years
Others 3 years
Construction in progress *
Note*: The Group constructs certain of its property. In addition to cost under the construction contracts, external costs, including consulting
fee directly related to the construction of such facilities, are capitalized. Depreciation is recorded at the time assets are ready for
the intended use. The Group assesses lands with indefinite life for impairment
periodically. (n) Goodwill, net Goodwill represents the excess of the
purchase consideration over the fair value of the identifiable net assets acquired in a business combination. Goodwill is not amortized
but is tested for impairment on an annual basis as of August 31, or more frequently if events or changes in circumstances indicate that
it might be impaired. The Group has the option to first assess qualitative factors to determine whether it is necessary to perform quantitative
goodwill impairment test. In the qualitative assessment, the Group considers primary factors such as industry and market considerations,
overall financial performance of the reporting unit, and other specific information related to the operations. The Group will perform
the quantitative impairment test if the Group bypasses the qualitative assessment, or based on the qualitative assessment, if it is more
likely than not that the fair value of each reporting unit is less than the carrying amount. For the year ended August 31, 2024, the Group
bypassed the qualitative assessment and performed a quantitative assessment of the goodwill for all reporting units. In the impairment test, the Group compares
the fair value of a reporting unit to its carrying amount. An impairment charge is recognized for the amount by which the carrying amount
exceeds the reporting unit’s fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to
that reporting unit. The Group estimate the fair values
of reporting units using discounted cash flow model of the income approach, which requires management to make significant estimates and
assumptions, including, but not limited to, discount rate, terminal growth rate and others used to project future cash flows, such as
forecasts of future revenues. These assumptions were affected by management’s business plans and expectations about future market
and economic conditions. For the years ended August 31, 2022, 2023 and 2024,
the Group recorded RMB 419,805, RMB 147,116 and RMB 593,748 impairment loss on goodwill, respectively (Note 9). (o) Intangible assets, net Intangible assets with a definite economic
life are carried at cost less accumulated amortization. Intangible assets with definite lives are amortized over their estimated useful
lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future
cash flows. Intangible assets with indefinite lives consist of oversea schools’ brand name and is tested for impairment annually,
or whenever events are indicators of impairment occur between annual impairment tests. Management expects to use the brand name indefinitely. Like goodwill, the Group test indefinite
lived intangible assets for impairment by first assessing qualitative factors to determine whether it is necessary to perform a quantitative
impairment test. If based on the qualitative assessment, it is more likely than not that the fair value of the indefinite lived intangible
asset is less than its carrying amount, a quantitative impairment test is required. The Group test indefinite lived intangible assets
for impairment using the relief-from-royalty method of the income approach, which requires management to make significant estimates and
assumptions, including, but not limited to, royalty rate, discount rate, terminal growth rate and forecasts of future revenues. Acquired intangible assets consist
of trademarks and brand names, customer relationship, backlog and student base, non-compete agreements and core curriculum are carried
at cost, less accumulated amortization and impairment. The amortization periods by major intangible asset classes are as follows:
Trademarks and brand names 10 years-indefinite
Customer relationship, backlog and student base 0.6-7 years
Non-compete agreements 4-8 years For the years ended August 31, 2022,
2023 and 2024, the Group recorded RMB 113,385, RMB nil (p) Leases The Group determines if an arrangement
is a lease or contains a lease at lease inception. Operating leases are required to be recorded in the balance sheets as operating lease
right-of-use (R |
