Financial Performance - The company's revenue decreased by approximately 5.0% from RMB 128.0 million in the six months ended June 30, 2020, to RMB 121.6 million in the six months ended June 30, 2021[6]. - Total revenue for the six months ended June 30, 2021, was RMB 124,618 thousand, a decrease of 4.2% compared to RMB 130,226 thousand for the same period in 2020[44]. - The net profit for the period was RMB 44,748 thousand, compared to a net loss of RMB 35,528 thousand in the same period last year[44]. - Basic and diluted earnings per share for the period were RMB 0.0298, compared to a loss per share of RMB 0.0237 in the previous year[44]. - The company reported a significant turnaround in performance, with a profit of approximately RMB 44.7 million for the six months ended June 30, 2021, a significant increase of 225.9% from a loss of RMB 35.5 million in the same period of the previous year[10]. Expenses and Costs - Employee costs rose from RMB 4.3 million to RMB 6.9 million, an increase of approximately RMB 2.6 million due to higher average employee salaries[7]. - Other operating expenses increased to approximately RMB 11.8 million, representing 9.7% of total revenue, compared to 6.9% in the previous period[8]. - Total employee costs increased to RMB 6,904 thousand in 2021 from RMB 4,346 thousand in 2020, reflecting a rise of approximately 58.7%[58]. - The total financial costs decreased to RMB 48.2 million for the six months ended June 30, 2021, down from RMB 71.2 million in the same period of 2020, showing effective cost management[55]. Assets and Liabilities - As of June 30, 2021, cash and cash equivalents amounted to approximately RMB 431 million, an increase from RMB 357 million as of December 31, 2020[12]. - Total borrowings decreased from RMB 1,489 million as of December 31, 2020, to RMB 988.2 million as of June 30, 2021[12]. - The asset-liability ratio improved to approximately 44.3% as of June 30, 2021, down from 55.5% as of December 31, 2020, primarily due to reduced borrowings[13]. - The company’s total liabilities decreased from RMB 1,165,533 thousand to RMB 876,887 thousand, a reduction of 24.8%[45]. Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2021, was RMB 543.3 million, compared to a net cash used of RMB 237.7 million in the same period of 2020, indicating a significant recovery[48]. - The company reported a net cash outflow from financing activities of RMB 542.1 million for the six months ended June 30, 2021, compared to a net cash inflow of RMB 307.8 million in the same period of 2020, indicating a shift in financing strategy[48]. Risk Management - The company continues to focus on compliance management and enhancing risk management capabilities in response to regulatory changes in the leasing industry[5]. - The group has developed a comprehensive risk management system to control various risks, including credit risk, which is considered the primary risk[19]. - The group regularly reviews the quality of financing lease receivables and has adopted a model for expected credit losses based on specific industry characteristics and economic conditions[21]. Customer Base and Market Focus - The customer base primarily serves the healthcare and aviation sectors, with a notable recovery in the healthcare industry[5]. - The company has no single customer contributing 10% or more to total revenue, indicating a diversified customer base[52]. - The company primarily operates in China, with all non-current assets located in the region, emphasizing its market focus[52]. Shareholder Information - As of June 30, 2021, the company’s major shareholder Union Capital Pte. Ltd. holds 768,475,221 shares, representing 51.23% of the company's equity[39]. - PA Investment Funds SPC holds 147,997,120 shares, accounting for 9.87% of the company's equity[39]. - The company has a total of 150,000,000 shares available for issuance upon the exercise of stock options under the stock option plan[36]. Future Plans and Investments - The company plans to continue focusing on market expansion and new product development to drive future growth[44]. - The company plans to diversify its business and reduce risks associated with solely operating in the financing lease sector[26]. - Approximately 50% of the net proceeds are allocated for business expansion in the healthcare sector, 40% for the aviation and public infrastructure sector, and 10% for general working capital[22]. Other Notable Events - The company sold a Gulfstream GV-SP (G550) aircraft for approximately USD 23.2 million in January 2021, with proceeds used to recover part of the financing lease agreement[24]. - A memorandum of understanding was signed with Nanshan Group on April 19, 2021, regarding the acquisition of full equity in Yantai Nanshan College[26]. - The company did not declare any dividends for the six months ended June 30, 2021, nor for the same period in 2020[61].
友联国际教育租赁(01563) - 2021 - 中期财报