Financial Performance - Revenue increased by 73.8% to RMB 1,645,443 thousand for the six months ended February 29, 2024, compared to RMB 946,591 thousand for the same period in 2023[4] - Gross profit rose by 57.2% to RMB 582,925 thousand, up from RMB 370,780 thousand in the previous year[4] - Net profit for the period grew by 65.6% to RMB 285,863 thousand, compared to RMB 172,649 thousand in 2023[4] - Adjusted net profit increased by 70.0% to RMB 319,474 thousand, up from RMB 187,904 thousand in the prior year[5] - Basic earnings per share increased by 69.5% to RMB 13.90 cents, compared to RMB 8.20 cents in 2023[4] - Revenue for the six months ended February 29, 2024, was RMB 1,645,443 thousand, a significant increase from RMB 946,591 thousand in the same period last year[70] - Gross profit for the six months ended February 29, 2024, was RMB 582,925 thousand, compared to RMB 370,780 thousand in the previous year[70] - Net profit for the six months ended February 29, 2024, was RMB 285,863 thousand, up from RMB 172,649 thousand in the same period last year[70] - Net profit attributable to the company's owners increased to RMB 288.881 million, up 67.8% from RMB 172.185 million in the same period last year[71] - Basic earnings per share rose to RMB 13.90 cents, a 69.5% increase from RMB 8.20 cents in the previous year[71] - Total revenue for the six months ended February 29, 2024, increased to RMB 1,645,443 thousand, up from RMB 946,591 thousand in the same period last year, representing a growth of approximately 73.9%[87] - Revenue from comprehensive education services rose to RMB 851,272 thousand, compared to RMB 517,780 thousand in the previous year, marking a 64.4% increase[87] - Revenue from restaurant operations increased to RMB 294,305 thousand, up from RMB 245,384 thousand, reflecting a 19.9% growth[87] - Product sales revenue surged to RMB 473,810 thousand, a significant increase from RMB 164,109 thousand in the prior year, representing a 188.7% growth[87] - Management and franchise fees grew to RMB 26,056 thousand, up from RMB 19,318 thousand, a 34.9% increase[87] - The company's profit attributable to ordinary equity holders increased to RMB 288,881 thousand for the six months ended February 29, 2024, compared to RMB 172,185 thousand for the same period in 2023[98] Operational Highlights - The company provided comprehensive education services to 36,708 high school students during the reporting period[6] - 83.5% of the company's 2023 high school graduates exceeded the Chinese university undergraduate admission score line, with 50.3% exceeding the first-tier university admission score line[8] - The company operates 50 schools across 36 cities in China, with a strong presence in Sichuan Province[9] - The number of full-time teachers increased to 2,060 as of February 29, 2024, up from 1,654 in the previous year[10] - The company provided school management and franchise services to 10 schools during the reporting period[11] - The company successfully separated five independently licensed for-profit high schools from integrated schools, with their financial performance consolidated into the group's financial statements[17] - The number of high school students increased by 43.8% from 25,524 in the 2022 fall semester to 36,708 in the 2023 fall semester, with new high school enrollments rising by 41% to 19,071[17] - Revenue increased by 73.8% from RMB 946.6 million in the six months ended February 28, 2023, to RMB 1,645.4 million in the six months ended February 29, 2024, driven by growth in integrated education services and product sales[20] - Revenue from integrated education services grew by 64.4% from RMB 517.8 million to RMB 851.3 million, primarily due to increased high school enrollments and a significant recovery in study tour business post-pandemic[20] - Product sales revenue reached RMB 473.8 million, including RMB 72.5 million from student supplies and RMB 401.3 million from agricultural products[20] - Revenue from restaurant operations increased by 19.9% from RMB 245.4 million to RMB 294.3 million, driven by a higher number of students served[20] - Management and franchise fees rose by 34.9% from RMB 19.3 million to RMB 26.1 million, attributed to the addition of three new schools to the managed school network[20] Financial Position - Total assets decreased from RMB 4,158.17 million as of August 31, 2023, to RMB 3,506.66 million as of February 29, 2024[16] - Total liabilities decreased from RMB 3,291.34 million as of August 31, 2023, to RMB 2,666.94 million as of February 29, 2024[16] - Net asset value decreased from RMB 866.84 million as of August 31, 2023, to RMB 839.72 million as of February 29, 2024[16] - Total non-current assets grew to RMB 7.447 billion, up 3.6% from RMB 7.186 billion as of August 31, 2023[72] - Cash and cash equivalents decreased significantly to RMB 652.332 million, down 56.6% from RMB 1.502 billion as of August 31, 2023[72] - Total current liabilities decreased to RMB 3.818 billion, down 16.5% from RMB 4.569 billion as of August 31, 2023[72] - Total equity increased to RMB 2.294 billion, up 9.2% from RMB 2.101 billion as of August 31, 2023[73] - Property, plant, and equipment increased to RMB 4.569 billion, up 2.6% from RMB 4.455 billion as of August 31, 2023[72] - Goodwill increased significantly to RMB 102.211 million, up 522.5% from RMB 16.413 million as of August 31, 2023[72] - Trade receivables increased to RMB 22.307 million, up 27.8% from RMB 17.448 million as of August 31, 2023[72] - Total assets less current liabilities increased to RMB 5.090 billion, up 2.1% from RMB 4.988 billion as of August 31, 2023[72] - Total equity increased to RMB 2,293,551,000 as of February 29, 2024, compared to RMB 2,100,975,000 as of August 31, 2023[75] - Reserves increased to RMB 2,177,297,000 as of February 29, 2024, up from RMB 1,919,373,000 as of August 31, 2023[75] - Share repurchases amounted to RMB 57,527,000 during the period[75] - The impact of the revised International Accounting Standard No. 12 resulted in an adjustment of RMB 5,507,000[75] - Dividends declared for 2023 amounted to RMB 49,739,000[75] - Acquisition of non-controlling interests resulted in a decrease of RMB 4,803,000 in equity[75] - Share-based payment expenses totaled RMB 28,140,000[75] - Foreign exchange differences on translation of overseas operations amounted to RMB 50,000[75] - The company's issued share capital remained unchanged at RMB 183,022,000[75] - Net profit for the period (restated) was RMB 172,185 thousand[77] - Total comprehensive income for the period (restated) was RMB 172,229 thousand[77] - Cash flow from operating activities before tax was RMB 382,137 thousand[78] - Depreciation of property, plant, and equipment amounted to RMB 79,865 thousand[78] - Amortization of intangible assets was RMB 41,189 thousand[78] - Fair value gain on financial assets at fair value through profit or loss was RMB 4,684 thousand[78] - Share-based compensation expenses were RMB 28,140 thousand[78] - Cash flow from operating activities was negative RMB 74,804 thousand[78] - Income tax paid was RMB 63,165 thousand[78] - Government grants received amounted to RMB 27,034 thousand[78] - Investment activities resulted in a net cash outflow of RMB 220,408 thousand for the six months ended February 29, 2024, compared to RMB 353,523 thousand for the same period in 2023[79] - Financing activities resulted in a net cash outflow of RMB 620,734 thousand for the six months ended February 29, 2024, compared to a net cash inflow of RMB 61,934 thousand for the same period in 2023[79] - The company's cash and cash equivalents decreased by RMB 915,946 thousand for the six months ended February 29, 2024, compared to a decrease of RMB 224,103 thousand for the same period in 2023[79] - As of February 29, 2024, the company had net current liabilities of approximately RMB 2,356,672 thousand, compared to RMB 2,198,351 thousand as of August 31, 2023[81] - The company had cash and cash equivalents of RMB 652,332 thousand as of February 29, 2024, compared to RMB 1,501,724 thousand as of August 31, 2023[81] - The company has unused bank financing totaling RMB 1,423,000 thousand as of February 29, 2024, which can be drawn upon within the next 1.5 to 6.5 years[81] - The company adopted new and revised International Financial Reporting Standards (IFRS) during the period, with no significant financial impact except for the amendments to IAS 12 regarding deferred taxes related to assets and liabilities arising from a single transaction[84] - The amendments to IAS 12 narrowed the scope of the initial recognition exception, requiring the company to recognize deferred tax assets and liabilities for temporary differences arising from transactions such as leases and decommissioning obligations[84] - The company recognized deferred tax assets for all deductible temporary differences related to lease liabilities and deferred tax liabilities for all taxable temporary differences related to right-of-use assets as of September 1, 2022[84] - Financial costs for the period amounted to RMB 35,595 thousand, compared to RMB 25,633 thousand in the same period last year, reflecting a 38.9% increase[93] - Pre-tax profit for the six months ended February 29, 2024, was impacted by costs of goods sold and services provided, totaling RMB 1,062,518 thousand, up from RMB 575,811 thousand in the prior year[94] - Tax expenses for the period increased to RMB 96,274 thousand, up from RMB 56,377 thousand in the previous year, driven by higher corporate income tax provisions in mainland China[95] - The company's property, plant, and equipment increased to RMB 4,568,682 thousand as of February 29, 2024, from RMB 4,454,733 thousand as of September 1, 2023, with additions of RMB 188,449 thousand[99] - The company's goodwill increased to RMB 102,211 thousand as of February 29, 2024, from RMB 16,413 thousand as of September 1, 2023, primarily due to the acquisition of subsidiaries[101] - The company's trade receivables totaled RMB 22,307 thousand as of February 29, 2024, with RMB 15,843 thousand due within three months and RMB 6,464 thousand overdue by more than three months[102] - The company's subsidiaries in China are subject to varying corporate income tax rates, with some benefiting from preferential rates such as 9% for Tibet Yongsi and 15% for Shenzhou Hongyu and Dayan ZhiGuang[96][97] - The company's lease liabilities increased to RMB 328,555 thousand as of February 29, 2024, from RMB 239,610 thousand as of September 1, 2023, with additions of RMB 54,812 thousand from subsidiary acquisitions[100] - The company's interest expenses capitalized as part of property, plant, and equipment amounted to RMB 20,814 thousand for the six months ended February 29, 2024, compared to RMB 17,703 thousand for the same period in 2023[99] - The company's share-based compensation plan resulted in the repurchase of 56,548,000 ordinary shares for cancellation, impacting the weighted average number of shares used for calculating basic earnings per share[98] - The company's subsidiaries in the education sector, such as Baise Tianli High School, benefit from a preferential corporate income tax rate of 15% due to their inclusion in encouraged industries under regional policies[97] - Total prepayments, deposits, and other receivables decreased to RMB 187,380 thousand from RMB 196,763 thousand compared to the previous period[103] - Trade payables increased to RMB 61,877 thousand from RMB 47,066 thousand, with the majority (RMB 55,747 thousand) due within three months[104] - Contract liabilities decreased significantly to RMB 924,491 thousand from RMB 1,315,089 thousand, primarily due to a reduction in advance payments for integrated education services[105] - Total interest-bearing bank and other borrowings increased to RMB 1,727,151 thousand from RMB 1,672,409 thousand, with secured loans accounting for the majority[106] - Secured loans increased to RMB 1,682,151 thousand from RMB 1,565,409 thousand, primarily backed by rights to school education services and subsidiary equity[107] - The company issued and fully paid 2,154,000,000 ordinary shares with a par value of HKD 0.1 each, equivalent to approximately RMB 183,022 thousand[108] - Restricted share awards decreased to 7,354,200 shares from 8,488,900 shares, with 1,134,700 shares vested during the period[110] - Outstanding share options remained at 61,000,000 with a weighted average exercise price of HKD 2.48 per share[111] - The company declared an interim dividend of RMB 4.17 cents per share, totaling RMB 88,237 thousand, an increase from RMB 52,342 thousand in the previous period[113] - The company acquired 80% equity of Shanghai Heru Education Technology Co., Ltd. and its subsidiary Shanghai Medford International High School for RMB 35,896,000 in cash, with an additional RMB 24,688,000 prepaid in previous years and RMB 6,000,000 in other payables[114][115] - The fair value of identifiable assets and liabilities of Heru Education at the acquisition date included property, plant, and equipment of RMB 5,852,000, other intangible assets of RMB 10,000,000, and right-of-use assets of RMB 52,629,000[115] - The net identifiable liabilities at fair value amounted to RMB -24,017,000, with non-controlling interests of RMB -4,803,000 and goodwill of RMB 85,798,000 recognized from the acquisition[115] - Since the acquisition, Heru Education contributed RMB 23,915,000 in revenue but resulted in a comprehensive loss of RMB 1,204,000 for the period[116] - The company's capital commitments for property, plant, and equipment as of February 29, 2024, amounted to RMB 80,740,000[117] - The company had outstanding balances with related parties, including RMB 674,635,000 due from affected businesses and RMB 2,198,976,000 payable to affected businesses[119][120] - Construction of property, plant, and equipment with related party Nanyuan Construction amounted to RMB 122,843,000 for the six months ended February 29, 2024[123] - The company granted advances of RMB 65,939,000 to affected businesses and received repayments of RMB 42,598,000 during the six months ended February 29, 2024[127] - The company received advances of RMB 23,000 thousand from Chengdu Shenzhou Tianli and RMB 4,050 thousand from Shanghai Yaqiao, totaling RMB 41,895 thousand for the affected business as of February 29, 2024[128] - Repayments of received advances amounted to RMB 68,945 thousand, with RMB 190,033 thousand repaid to Chengdu Shenzhou Tianli and RMB 409,180 thousand to the affected business, totaling RMB 599,213 thousand as of February 29, 2024[128] - The company provided financial guarantees for the affected business and Chengdu Shenzhou Tianli, with a total guarantee amount of RMB 514,281 thousand as of February 29, 2024[130] - The total compensation for key management personnel was RMB 18,606 thousand for the six months ended February 29, 2024, including RMB 1,406 thousand in salaries, allowances, and benefits, and RMB 17,166 thousand in share-based payment expenses[131] - The fair value of financial instruments measured at fair value through profit or loss was RMB 3,004 thousand as of February 29, 2024, with no significant changes in fair value hierarchy transfers during the period[134][136] - Non-current interest-bearing bank and other borrowings had a fair value of RMB 1,056,285 thousand as of February 29, 2024, classified under Level 3 of the fair value hierarchy[135] - The fair value of non-current payables to related parties was RMB 1,066,597 thousand as of February 29, 2024, also classified under Level 3 of the fair value hierarchy[135] - The company had no financial liabilities measured at fair value as of February 29, 2024[137] Corporate Governance and Shareholder Information - The company's executive director, chairman, and CEO, Mr. Luo Shi, holds a 43.29% interest in the company's shares, including beneficial interests, controlled corporate interests, spouse interests, and trust beneficiary interests[
天立国际控股(01773) - 2024 - 中期财报