Financial Performance - The main revenue for the six months ended February 29, 2024, was RMB 3,284 million, an increase of 18.3% from RMB 2,775 million for the same period in 2023[17]. - Gross profit for the same period was RMB 1,839 million, representing a gross margin of 56.0%, compared to RMB 1,593 million and a gross margin of 57.4% in 2023[17]. - Net profit attributable to the owners of the company increased to RMB 1,071 million, up 9.6% from RMB 977 million in the previous year[21]. - Adjusted net profit for the six months ended February 29, 2024, was RMB 1,092 million, compared to RMB 1,045 million in 2023, reflecting a growth of 4.5%[24]. - Operating profit for the period was RMB 1,475 million, an increase of 17.4% from RMB 1,257 million in the prior year[17]. - The adjusted EBITDA for the six months ended February 29, 2024, was RMB 1,956 million, up 16.7% from RMB 1,676 million for the same period in 2023[30]. - The net profit for the six months ended February 29, 2024, increased by 14.7% to RMB 1,188 million, compared to RMB 1,036 million for the same period in 2023[30]. - The gross profit for the six months ended February 29, 2024, was RMB 1,839 million, reflecting a growth of 15.4% from RMB 1,593 million for the same period in 2023[27]. - Profit before tax increased to RMB 1,283 million, representing a growth of 19.98% compared to RMB 1,069 million in the previous year[93]. - The total comprehensive income for the period was RMB 1,069 million, compared to RMB 976 million in the same period last year, reflecting a 9.5% increase[101]. Revenue Segmentation - The domestic market segment's revenue increased from RMB 2,668 million to RMB 3,179 million, representing a growth of 19.2%[27]. - The international market segment's revenue decreased to RMB 105 million, down from RMB 107 million for the same period in 2023[27]. - Domestic market revenue reached RMB 3,179 million, while international market revenue was RMB 105 million for the same period, indicating a strong focus on the domestic market[113]. - The education services revenue recognized over time was RMB 3,263 million, up from RMB 2,753 million in the previous year, marking a growth of approximately 18.4%[117]. Costs and Expenses - The company reported a financing cost of RMB 225 million, which increased from RMB 190 million in the previous year, indicating a rise of 18.4%[17]. - Administrative expenses rose to RMB 476 million from RMB 387 million, reflecting increased operational costs[93]. - The total employee costs increased to RMB 1,020 million, up from RMB 839 million for the same period in 2023, representing a 21.6% increase[127]. - The construction costs for new campuses and student dormitories increased to RMB 1,648 million, compared to RMB 840 million for the same period in 2023, indicating a 96.5% rise[137]. Financial Position - The company's cash reserves as of February 29, 2024, amounted to RMB 4,531 million, a decrease from RMB 5,802 million as of August 31, 2023[30]. - As of February 29, 2024, the company's bank and other borrowings and bonds amounted to RMB 8,933 million, an increase from RMB 8,603 million as of August 31, 2023[33]. - The net equity debt ratio as of February 29, 2024, was 23.0%, up from 15.3% as of August 31, 2023[33]. - The company maintained a prudent treasury policy and a robust liquidity structure as of February 29, 2024[33]. - The company recorded net assets of approximately RMB 19,148 million and cash reserves of approximately RMB 4,531 million as of February 29, 2024[81]. - The company had a net decrease in cash and cash equivalents of RMB 1,129 million, which is an improvement from a decrease of RMB 1,491 million in the previous year[106]. Shareholder Information - The total number of issued shares was 2,551,540,490, with significant shareholdings by directors, including 61.04% held by certain directors and their related entities[55]. - Major shareholder "Blue Sky" holds 772,184,000 shares, representing approximately 30.26% of the total issued shares[62]. - The company declared a mid-term dividend of RMB 0.1877 per share for the period, an increase from RMB 0.1638 per share for the same period in 2023[131]. - The company has a share option plan that may grant options to directors based on the number of shares held prior to the IPO[56]. Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code as set out in Appendix C1 of the listing rules for the six months ended February 29, 2024[50]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the six months ended February 29, 2024[51]. - The company has no significant contingent liabilities as of February 29, 2024[33]. Employee and Operational Developments - The company had 17,810 employees as of February 29, 2024, representing a 19% increase from 14,925 employees on February 28, 2023, primarily due to organic growth in staff numbers in new schools and districts[43]. - The company provides various benefits and social insurance plans for its employees, ensuring compliance with local labor laws[43]. - The company has implemented a mentorship program to help new teachers integrate into the teaching team more effectively[43]. Investment and Expansion Plans - The company plans to continue expanding its vocational education services across China, Australia, and the UK, focusing on high-quality technical talent development[15]. - The company raised approximately RMB 1,681.4 million from previous placements, with 70% allocated for expanding new campuses in the Greater Bay Area and 30% for potential acquisition projects[36]. - The company is focused on expanding its education business overseas while adhering to the updated foreign investment negative list regulations[75]. Risk Management - The company is monitoring foreign exchange risks and may consider hedging against significant foreign currency risks when necessary[33].
中教控股(00839) - 2024 - 中期财报