Financial Performance - For the six months ended February 28, 2021, total revenue reached RMB 1,096,018 thousand, an increase of RMB 304,205 thousand or 38.4% compared to the same period last year[20]. - Adjusted net profit for the period was RMB 314,523 thousand, an increase of RMB 34,030 thousand or 12.1% year-on-year[20]. - The gross profit margin for the period was 43.4%, a decrease of 1.0 percentage points from the previous year[20]. - Net profit decreased by 15.8% to RMB 222,200,000 for the six months ended February 28, 2021, down from RMB 264,000,000 for the same period in 2020[57]. - Total comprehensive income for the period was RMB 199,760 thousand, down from RMB 257,335 thousand in the previous year, reflecting a decline of 22.4%[95]. - Basic earnings per share for the period was RMB 7.44, compared to RMB 8.81 for the same period last year, indicating a decrease of 15.5%[95]. - The company’s net profit for the period decreased to RMB 222,200,000, primarily due to losses from fair value changes of convertible bonds and increased financial costs[74]. - Adjusted net profit for the six months ended February 28, 2021, increased by RMB 34 million or 12.1% to RMB 314.5 million, with an adjusted net profit margin of 28.7% compared to 35.4% for the same period in 2020[75]. Revenue Sources - Tuition and boarding fees accounted for RMB 1,013,608 thousand, reflecting a growth of RMB 302,007 thousand or 42.4% year-on-year[20]. - Revenue from tuition fees rose by 42.4% to RMB 1,013,600,000, primarily due to the acquisition of overseas schools KIS and CIS and tuition fee increases[60]. - The overseas segment generated RMB 330,565,000 in revenue, while the China segment contributed RMB 765,453,000, showing a shift in revenue contribution towards international operations[120]. Student Enrollment and Capacity - The total number of enrolled students increased to 44,076, up by 3,000 students or 7.3% compared to the previous year[21]. - The estimated total student capacity rose to 73,900, an increase of 9,280 or 14.4%[21]. - The total number of enrolled students as of March 31, 2021, was approximately 46,034, representing a 5.6% increase from the previous year, with 4,197 students (9.1% of total) attending overseas schools[42]. - The total number of schools increased from 100 to 116, representing a growth of 16 schools or 16.0%[21]. Operational Metrics - The overall utilization rate decreased to 59.6%, down by 4.0 percentage points or 6.3% from the previous year[21]. - The average annual tuition fee per student increased by approximately 30.6% to RMB 45.2 thousand, mainly due to higher fees charged by CIS compared to other schools in the group[34]. - The student-to-teacher ratio slightly decreased from 11.7:1 as of February 29, 2020, to 11.3:1 as of February 28, 2021[39]. Expansion Plans - The company plans to continue investing in overseas schools, particularly in countries along the Belt and Road Initiative, expecting their contribution to total revenue to exceed 40% by the end of the current five-year plan[24]. - The company aims to open new schools in Tianjin, Inner Mongolia, Singapore, and Canada, with plans to establish schools in Nanjing and Shenzhen by the 2022/2023 academic year[44]. - The company plans to establish 10 regions in China to enroll 100,000 students and two overseas regions to enroll at least 10,000 students during the implementation of the "Six-Five Plan"[48]. Financial Position - As of February 28, 2021, the group's bank borrowings totaled RMB 2.715 billion, with 62.2% due within one year[80]. - The debt-to-equity ratio decreased from 78.5% as of August 31, 2020, to 73.8% as of February 28, 2021, primarily due to repayment of bank loans[82]. - The company reported a significant reduction in cash and cash equivalents, which decreased to RMB 916,847 thousand from RMB 1,310,907 thousand[98]. - The total liabilities as of February 28, 2021, were RMB 5,786,594,000, down from RMB 6,645,595,000, which is a decrease of about 12.9%[124]. Employee and Management Compensation - Total employee compensation, including directors' remuneration, for the six months ended February 28, 2021, was RMB 489.3 million, up from RMB 366.1 million in the same period in 2020[87]. - The total remuneration for key management personnel increased to RMB 9,644,000 from RMB 10,574,000, a decrease of about 8.8%[177]. Corporate Governance and Compliance - The company has adopted the corporate governance code and complied with all applicable code provisions, except for the provision regarding the separation of the roles of Chairman and CEO[184]. - The company continues to review and monitor its practices to align with corporate governance codes[185]. - The company has confirmed compliance with the standard code for the six months ending February 28, 2021[186]. Convertible Bonds - The company issued $125 million of 2.25% convertible bonds due in 2026, with estimated net proceeds of approximately $123.1 million to be used for repaying existing borrowings and acquisition-related expenses[54]. - The fair value of convertible bonds issued by the group reached RMB 847,697,000, with a significant valuation model based on a 40.0% expected volatility and a 3.004% risk-free rate[171]. - The conversion price for the bonds as of February 28, 2021, was set at HKD 2.525 per share[158].
枫叶教育(01317) - 2021 - 中期财报