凯文教育(002659) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions The company's board, supervisory board, and senior management guarantee the report's accuracy, while the financial leadership confirms the financial statements' integrity - The company's board of directors, supervisory board, and all senior executives guarantee the truthfulness, accuracy, and completeness of this semi-annual report, assuming corresponding legal responsibilities; the company's head, Wang Teng, and the head of accounting, Pei Lei, confirm the financial report's truthfulness, accuracy, and completeness[1] - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the first half of 2024[2] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents its key financial performance metrics for the reporting period Company Profile Beijing Kaiwen Dexin Education Technology Co., Ltd. (Kaiwen Education) is a Shenzhen Stock Exchange-listed company with stock code 002659, led by legal representative Wang Teng Basic Company Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Kaiwen Education | | Stock Code | 002659 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Beijing Kaiwen Dexin Education Technology Co., Ltd. | | Legal Representative | Wang Teng | Key Accounting Data and Financial Indicators In H1 2024, operating revenue grew 18.92% to RMB 152.19 million, while net loss attributable to shareholders narrowed by 51.00% to RMB 9.88 million, despite a 55.71% decrease in net cash flow from operating activities Key Financial Data for H1 2024 | Indicator | Current Period | Prior Period | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 152,192,064.61 | 127,980,355.92 | 18.92% | | Net Profit Attributable to Shareholders of the Listed Company (RMB) | -9,877,821.62 | -20,159,044.59 | 51.00% | | Net Profit Attributable to Shareholders of the Listed Company, Excluding Non-Recurring Gains and Losses (RMB) | -11,184,558.09 | -21,313,446.84 | 47.52% | | Net Cash Flow from Operating Activities (RMB) | -56,529,301.80 | -36,303,314.34 | -55.71% | | Basic Earnings Per Share (RMB/share) | -0.017 | -0.034 | 50.00% | | Weighted Average Return on Net Assets | -0.45% | -0.90% | 0.45% | | Indicator | As of End of Current Period | As of End of Prior Year | Year-over-Year Change | | Total Assets (RMB) | 2,989,248,367.29 | 3,109,891,235.11 | -3.88% | | Net Assets Attributable to Shareholders of the Listed Company (RMB) | 2,191,078,825.15 | 2,200,876,886.32 | -0.45% | Non-Recurring Gains and Losses and Their Amounts The company's non-recurring gains and losses totaled RMB 1.31 million for the period, primarily from fair value changes of financial assets and liabilities Non-Recurring Gains and Losses Items | Item | Amount (RMB) | | :--- | :--- | | Gains and Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises | 1,646,133.99 | | Government Grants Recognized in Current Period Profit or Loss | 73,897.71 | | Other Gains and Losses Meeting the Definition of Non-Recurring Items | 23,658.58 | | Less: Income Tax Impact | 435,922.57 | | Less: Impact on Minority Interests (After Tax) | 1,031.24 | | Total | 1,306,736.47 | Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, core competencies, and risk management strategies Principal Businesses The company's main operations span K12 school management, quality education, and vocational education, with a strategic focus on industry-education integration in vocational training - The company's principal businesses are divided into three segments: K12 school operations, providing services to two Kaiwen schools and promoting brand and curriculum output; quality education, offering arts, sports, and technology training both on and off campus, including operating Xishan Ski Resort; and vocational education, a future development focus, establishing industry colleges with vocational schools through industry-education integration to cultivate skilled talent[16] Core Competitiveness Analysis The company's core strengths include state-owned enterprise backing, extensive vocational education industry resources, mature school operation experience, and premium quality education resources - The company's controlling shareholder is Haiguotou, a subsidiary of Beijing Haidian District State-owned Assets Supervision and Administration Commission, whose state-owned background enhances social influence and business expansion capabilities[17] - In vocational education, the company has partnered with industry leaders like Baidu, Tencent, and Loongson Technology, converting industry resources into teaching capabilities[18] - The company possesses successful experience in establishing and operating two Kaiwen schools from scratch, developing comprehensive school operation and management capabilities, including teacher team building and logistics services[18] - Through collaborations with institutions like Berkeley College of Music, the company has accumulated high-quality arts and sports education resources, creating a differentiated competitive advantage[19] Analysis of Principal Business In H1 2024, operating revenue increased by 18.92% to RMB 152 million, with net loss narrowing by 51.00%, driven by growth in education services and expansion in vocational education - Both Kaiwen schools obtained new international accreditations (A-Level Edexcel, Cognia), enhancing their international recognition; 2024 graduates achieved significant university admissions, with Haidian Kaiwen School boasting a 100% admission rate to US Top 50 universities[20] - To meet diverse demands, both schools introduced programs targeting domestic college entrance exams, such as Chaoyang Kaiwen's Elite Quality High School Class and Haidian Kaiwen's Jingrun Mathematics Special Class[21] - Vocational education made progress, with the company becoming a Huawei certified ICT service partner and signing a training and certification cooperation agreement with Baidu in generative AI; as of Fall 2023, the total enrollment in partnered industry colleges exceeded 4,000 students[21] Key Financial Data Year-over-Year Changes | Item | Current Period (RMB) | Prior Period (RMB) | Year-over-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 152,192,064.61 | 127,980,355.92 | 18.92% | - | | Financial Expenses | 17,805,879.68 | 22,885,516.11 | -22.20% | - | | Net Cash Flow from Operating Activities | -56,529,301.80 | -36,303,314.34 | -55.71% | Increased tax payments in current period compared to prior period | | Net Cash Flow from Investing Activities | -1,416,651.01 | -5,947,975.28 | 76.18% | Decreased cash paid for acquisition of long-term assets in current period | | Net Cash Flow from Financing Activities | -74,669,462.09 | -54,586,753.76 | -36.79% | Increased repayment of long-term borrowings in current period | Operating Revenue Composition (by Product) | Product | Amount in Current Period (RMB) | Percentage of Operating Revenue | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Education Services Business | 117,140,544.59 | 76.97% | 30.69% | | Training Business | 32,898,074.67 | 21.62% | -9.22% | | Leasing Business | 2,153,445.35 | 1.41% | 2.13% | Analysis of Assets and Liabilities As of the reporting period end, total assets were RMB 2.99 billion, a 3.88% decrease from year-end, with investment properties being the largest asset component - During the reporting period, there were no significant changes in the composition of the company's major assets and liabilities[26] - As of the end of the reporting period, RMB 193,990.00 in monetary funds were restricted due to letter of guarantee deposits[28] Analysis of Major Holding and Participating Companies During the reporting period, Wenhuaxuexin and Kaiwen Zhixin were profitable, while Wenkaixing incurred a significant loss Operating Performance of Major Subsidiaries (Unit: RMB) | Company Name | Principal Business | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | | Wenhuaxuexin | Investment Management and Education Consulting | 1,495,911,499.57 | -67,253,834.08 | 24,141,036.39 | 6,327,979.70 | | Wenkaixing | Education Investment Management and Investment Consulting | 2,263,505,036.67 | 769,320,709.29 | 35,301,086.50 | -21,132,039.11 | | Kaiwen Zhixin | Education Investment Management and Investment Consulting | 226,701,579.15 | 40,185,343.69 | 45,337,644.72 | 13,015,565.96 | Risks and Countermeasures The company faces risks from policy changes, intensified market competition in vocational education, and the ongoing drag on performance from significant fixed asset depreciation - The company faces risks including: industry policy change risk, due to high policy sensitivity in education and uncertainties in local implementation; intensified market competition risk, as more participants enter the vocational education sector, requiring time for standardization and scaling; and depreciation and amortization drag on performance risk, where substantial early investments in school construction contribute significantly to operating losses[31] Corporate Governance This section details changes in the company's board of directors, supervisors, and senior management during the reporting period Changes in Directors, Supervisors, and Senior Management The company experienced multiple changes in its board, supervisory board, and senior management, including the resignation of former chairman Wang Weiqing and the election of Wang Teng as the new chairman - Mr. Wang Weiqing resigned as the company's chairman and director due to the expiration of his employment contract and non-renewal[34] - Mr. Wang Teng was elected as the chairman and director of the company's Sixth Board of Directors, approved by the shareholders' meeting and the board of directors[34] Environmental and Social Responsibility This section addresses the company's environmental performance and social responsibility initiatives Significant Environmental Issues The company and its subsidiaries are not designated as key polluting entities and have not incurred environmental administrative penalties during the reporting period - The company and its subsidiaries are not classified as key polluting entities by environmental protection authorities, and no penalties for significant environmental violations occurred during the reporting period[37] Significant Matters This section outlines major events and transactions impacting the company, including significant contracts and their performance Significant Contracts and Their Performance The company provided significant guarantees for an associated party and its wholly-owned subsidiary, with total actual guarantees representing 67.45% of net assets - The company continues to provide joint and several liability guarantees for original bridge steel structure projects transferred to Xinzongtai; as of June 2024, the external guarantee amount for the remaining seven projects is RMB 788 million, with the actual potential guarantee liability reduced to RMB 125 million[46] - The company provided joint and several liability guarantees for its wholly-owned subsidiary Wenkaixing's RMB 1.3 billion comprehensive credit line from ICBC; as of June 2024, the outstanding bank loan balance was RMB 690 million[46] Summary of Guarantees | Guarantee Type | Actual Guarantee Balance as of End of Reporting Period (RMB 10,000) | | :--- | :--- | | External Guarantees | 78,797.75 | | Guarantees for Subsidiaries | 69,000.00 | | Total Actual Guarantees | 147,797.75 | | Percentage of Company's Net Assets | 67.45% | Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure Number of Shareholders and Shareholding Structure As of the reporting period end, the company had 20,309 common shareholders, with Badachu Holding Group Co., Ltd. and China Bank - Huaxia Industry Prosperity Mixed Securities Investment Fund as the top two shareholders Top Ten Shareholders' Shareholding Information | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | Badachu Holding Group Co., Ltd. | 28.84% | 172,519,294 | | Bank of China Co., Ltd. - Huaxia Industry Prosperity Mixed Securities Investment Fund | 2.80% | 16,765,200 | | Ping An Bank Co., Ltd. - Huaxia Foresight Growth One-Year Holding Mixed Securities Investment Fund | 2.16% | 12,936,700 | | Beijing Haidian District State-owned Assets Investment and Management Co., Ltd. | 1.16% | 6,964,800 | | Beijing Jingluxingye Investment Co., Ltd. | 1.08% | 6,449,754 | - Badachu Holding Group Co., Ltd. has entrusted the shareholder rights corresponding to its 28.84% stake to Beijing Haidian District State-owned Assets Investment and Management Co., Ltd. (Haiguotou); thus, Haiguotou is the company's controlling shareholder, holding a total of 30% voting rights[54][55] Preferred Shares Information This section confirms the absence of preferred shares within the company during the reporting period - The company had no preferred shares during the reporting period[58] Bonds Information This section confirms the absence of bond-related activities for the company during the reporting period - The company had no bond-related information during the reporting period[59] Financial Report This section presents the company's comprehensive financial statements, including balance sheet, income statement, and cash flow statement Financial Statements The financial statements show total assets of RMB 2.99 billion, with investment properties as the largest component, and a net loss of RMB 7.99 million for the first half, significantly narrowed year-over-year - Regarding assets, as of June 30, 2024, the company's total assets were RMB 2.99 billion, with a high proportion of non-current assets, and investment properties (RMB 1.864 billion) being the most significant asset[61][62] - Regarding liabilities, total liabilities were RMB 797 million, with long-term borrowings (RMB 590 million) being the primary component[63] - Regarding profit, in H1 2024, total operating revenue reached RMB 152 million, total operating costs were RMB 161 million, resulting in a net loss of RMB 7.9982 million, a significant narrowing from the RMB 19.823 million loss in the prior period[69][70] - Regarding cash flow, net cash flows from operating, investing, and financing activities were -RMB 56.5293 million, -RMB 1.4167 million, and -RMB 74.6695 million, respectively, with cash and cash equivalents decreasing by RMB 133 million from the beginning of the period[74][75] Notes to Consolidated Financial Statements The notes detail financial statement items, highlighting a significant increase in accounts receivable, investment properties as the core asset, and long-term borrowings primarily from a subsidiary's pledged loans - Accounts receivable balance at period-end was RMB 51.7127 million, a significant increase from RMB 5.6574 million at period-start, primarily due to education service fees receivable within one year[160][167] - Investment properties had a book value of RMB 1.864 billion, representing the company's most core asset, measured using the cost model, primarily comprising buildings and land use rights[203] - Long-term borrowings balance at period-end was RMB 590 million, representing pledged loans obtained by the controlling subsidiary Wenkaixing from ICBC, guaranteed by the parent company and related parties[241][242] - Major related party transactions involved providing education services and meal fees to related parties Beijing Chaoyang Kaiwen School and Beijing Haidian Kaiwen School, with total recognized revenue of RMB 93.5618 million[304]