Oman Education & Training Investment Company SAOG ($OETI)

I think from what I can see, all the attendees are English-speaking audience. So we'll skip the Arabic part, and we'll start in English. So welcome, everybody. This is Anis Mohammed Al-Mamaari speaking. I'm the CEO of Oman Education & Training Investment. And I have here with me Mr. Mohamed Habayeb. He is the Financial Controller and the Investor Relations Manager, too. I would like to go through what have been happening for the past 6 months of this year. As you know, the main investment that we have is Sohar University. We own it 100%. Alhamdulillah, Sohar University has been doing greatly for the past 4, 5 years. The numbers are increasing almost by 100% every year. So let me go through the presentation. The first point is to explain the innovation center project. We have completed almost 40% of the construction. This project will be the first of its kind in the private institutions -- private education institutions. It will have a business center. It will have an incubator and 2 major labs for AI, a workshop, and the ground floor will be commercial. The commercial part will be to cover all the operation expenses of the innovation center. As I said, it's the first of its kind in the higher education -- private higher education. The total cost we expect would be somewhere around OMR 5 million. The project should be rolled out beginning of next year. This will enhance the university's ranking in terms of research and innovation. The Ministry of Higher Education or the Ministry of Education now had a fund of OMR 300,000, and it floated for all the universities -- private universities in Oman for competition. And Alhamdulillah, we won that fund. So we're expecting OMR 300,000 to come from the ministry to fund the operation of this innovation center. So we're looking forward to have this project. And as I said, this will help the ranking of the university. Once we have this project rolled out, the university ranking will go up internationally. So that's one of the major projects we have. In terms of the ranking, Alhamdulillah, university have jumped 19 points in the Arab QS ranking. We are now #81 among all the Arab universities. And internationally, we -- Alhamdulillah, we are among the top 1,000 universities worldwide. In terms of numbers of students, we jumped from 13,000 students last year, and now we are 15,430 students. And that, of course, will be reflected positively in our financial statements. Another major point I would like to highlight is that maybe the most important one I would like to highlight for the future is that we are establishing -- this is the most important one. We are establishing a faculty of health and science here at the university. It's not going to be medicine because medicine as a college, we feel it's a bit saturated here in Oman, and we feel it's not going to be feasible to have a medicine college, a medical college. And we are going for the faculty of health and science, nursing and all other supporting medical services. This is in the process. So it's still in the early stages. We will be submitting our proposal to the Ministry of Health and the Ministry of Education end of this month. And hopefully, we will get the permission to establish this faculty. In terms of research, the university have submitted 10 patents application for the first time. 8 of them will be locally here in Oman, but 2 of them qualify to be submitted to the U.S. So again, once we get these approvals, the ranking of the university in terms of research will jump, Inshallah. The other activities is well going in terms of the hosting of local and international conferences. We are constantly hosting international conferences and local conferences. Again, this is part of our procedures and initiatives to get connected to the community and the market. We try to get in touch with all industrial sectors here in Sohar because it's -- as you know, Sohar is the industrial hub of Oman. So we keep contacting all the major players here in Sohar. We host them for conferences and so on. That's the main highlight. If you have any questions, we are open to answer these questions. Meanwhile, I'll pass the mic to Mr. Mohamed to highlight the financials in detail. total.

Welcome, everybody. Welcome investor, analysts and shareholders. My name is Mohamed Habayeb. I'm Financial Controller in Oman Education & Training Investment. The financial statement analysis will be started in balance sheet. The balance sheet of Oman Education & Training Investment has a strong achievement for the 6 months from September to February. When we look to the property and equipment of Sohar University, the net cost of property and equipment is OMR 30 million. And also, we have almost OMR 30 million cash and bank balance compared to OMR 24 million the same period, increased by about OMR 6 million, increased 25%. That means we are strong in terms of cash flow and we have no any loan or any credit facility from the bank. The second thing, our retained earnings OMR 14 million up to 2028, February '26. And our equity OMR 32 million increased by 18% compared to the same period last year. When we look to -- and when we go down also, okay, we will see that Sohar University has a very good position in the terms of credit. We have very good student -- you see current liability, you will see that all the -- we don't have much, you can say like, account receivable under control, everything under control regarding the protection of the account receivable. Here, we can say like that. If we go to the current liability, you'll see that we have a good position in terms of liquidity. Second thing, when you go to noncurrent liabilities also, we will see that [indiscernible] when you see this amount, you will find it has increased compared to last year by 15%. This amount came from the deferred income. The deferred income means because the university income came from the student semester-wise. Now that OMR 19 million, most of them belong to the third and fourth quarter. Mostly, it will come -- it will be income in the next 6 months. This is our financial position. We have very strong liquidity and cash flow. We have a very good position in the terms of credit also. And Sohar University, they have no commitment -- capital commitment except the innovation center, almost our commitment -- remaining commitment in the commercial center, almost OMR 3.5 million, OMR 4 million like that one. When we go to income statement, we will find the tuition and the training fees jumped by 16% compared to the last year -- the same period last year, OMR [ 15 ] million almost this year compared to OMR 13 million last year. It has increased by OMR [ 2.119 ] million. That means we are in the growth of that in terms of the revenue. This is very important. And also, when we go to the other items of the income statement, we will find increase of the salary. This is normal because the income increase that new staff should be increased also. And we have no increase in the administration expenses. And depreciation a little bit increased by 5% compared to the same period last year. Sohar University has -- the Sohar University based on the cash flow and the cash in bank increased compared to the last year. Also, the finance income increased by 29%, 118,000 this year. This is because of the cash and cash balance has been increased in Sohar University and the group. If we go to the net income, you will find the profit for the year after tax, you will find it increased by 33%, almost OMR [ 1.5 ] million compared to last year increase. This year -- this period OMR 6 million compared to OMR [ 4.50 ] million last year, the same period. The earnings per share for this half year, 6 months, almost OMR 0.86 compared to OMR 0.64, OMR 0.21 increase, 33% increase. Now we will go to the analysis of the financial statement and income statement. This is the summarization of the group that we can read it. The group income has increased by 16%, primarily due to the raise in the registration of the new students during the period ended [ '28, '26 ]. Out of this interest increase, almost OMR 2.12 million is mainly due to the facility of art education and compared to the previous year. Salary and staff-related costs increased by a small amount, in fact of significant count of the new recruitment, 11% increase because of the new recruitment of the academic staff during this period. Administrative and other operating expenses, a little bit decreased compared to last year due to the control of the expense of the group. Finance income increased by 29% to interest receivable from the fixed and core deposit, which are majorly funded from the student receipt. This is the ratio of the analysis. Also regarding the other analysis, we can go down. We'll see down. Ratio analysis, current assets and current liabilities. Current ratio [ 282% ] compared to 173%. And it means the current asset greater than the current liabilities, 82% more than current liabilities compared to the last year, 73%. Okay. Current ratio is the indicator of the liquidity position and working capital of the company generally a ratio of 1.8 to [ 1 1 ]. This is a very good ratio compared to standard ratio in the market. It is considered to be ideal. Presently, current ratio of the parent company and the group appears strong. Profitability ratio, that means operation profit margin, 41% compared to 37%. Net profit margin, 39% compared to 34%. Regarding the net assets ratio, the group -- regarding net asset ratio for the group, net asset per share now OMR 4.60 compared to OMR 3.90. Basic earnings per share this period OMR 0.86 compared to OMR 0.64. In conclusion, the ratio of liquidity and ratio of profitability is very good and very strong ratio. Now our CEO, Anis Al-Mamaari, will present the Arabic version of the financial statement.

Let me just check if we have any Arabic speaking attendees. From what I can see, we have no Arabic speaking audience. So if you have any questions, please, we are ready to answer.

[Foreign Language]

Okay. So we'll go through the Arabic part. [Foreign Language] Sorry, gentlemen, we're just trying to present this in Arabic for the recording sake.

Okay. I can't read it from my side, the report.

Sorry, we had a technical issue for sharing. So we'll go through the presentation in Arabic. And if anybody has any questions, please let us know. [Foreign Language]

[Foreign Language]

[Foreign Language] So this is the end of the session. If you have any questions, please let us know. We are here to answer your questions. Otherwise, you can always contact us through e-mail or mobile number. If there is not any inquiries or questions, we would like to take your permission to leave. And we thank you very much for attending. We'll see you in the next quarter, Inshallah. Thank you. Take care.