Financial Performance - The company's revenue for the six months ended June 30, 2021, increased by 58.8% to RMB 517.1 million compared to RMB 325.6 million in the same period last year[11]. - Adjusted profit for the period was RMB 62.9 million, a decrease of 2.2% from RMB 64.3 million in the previous year[11]. - Operating profit rose by 16.7% to RMB 77.8 million, up from RMB 66.7 million in the same period last year[11]. - The net profit for the period decreased by 7.7% to RMB 42.7 million, down from RMB 46.3 million in the previous year[11]. - Basic earnings per share were RMB 7.76, down from RMB 8.34 in the same period last year[11]. - Gross profit for the same period was RMB 192,463 thousand, up from RMB 122,235 thousand, indicating a gross margin improvement[28]. - The group reported revenue from after-school education services of RMB 517,055 thousand for the six months ended June 30, 2021, compared to RMB 325,607 thousand in the same period of 2020, representing a growth of approximately 58.7%[79]. - Profit before tax increased by 20.2% from RMB 49.8 million to RMB 59.9 million[177]. - Net profit decreased by 7.7% from RMB 46.3 million to RMB 42.7 million[179]. - Total equity as of June 30, 2021, was RMB 487.5 million, down from RMB 538.0 million as of December 31, 2020[184]. Operational Metrics - The number of tutoring class hours grew by 50.1% from 3,893,674 hours to 5,844,082 hours year-on-year[15]. - The total number of learning centers increased from 127 to 152, contributing to the revenue growth[162]. - The average tuition fee per tutoring session rose from RMB 83.6 to RMB 88.5, reflecting a 5.2% increase[162]. - The number of enrolled students for academic preparatory courses increased by 67.4% to 202,700, with tutoring hours rising by 48.6%[164]. Cost and Expenses - The cost of sales increased by 59.6% from RMB 203.4 million to RMB 324.6 million, primarily due to higher teacher salaries and amortization of right-of-use assets[168]. - Administrative expenses rose by 60.9% from RMB 58.4 million to RMB 93.9 million, driven by increased salaries and benefits for administrative staff[171]. - R&D expenses surged by 87.2% from RMB 20.4 million to RMB 38.2 million, attributed to an increase in the number of R&D personnel[172]. - Employee benefits expenses increased to RMB 305,880,000, up 67.5% from RMB 182,476,000 in the previous year[87]. - Depreciation and amortization expenses rose to RMB 88,032,000, a 20.2% increase from RMB 73,210,000[87]. Cash Flow and Assets - Cash and cash equivalents significantly decreased from RMB 442,586 thousand to RMB 146,232 thousand, a drop of approximately 66.9%[35]. - Operating cash flow for the six months ended June 30, 2021, was RMB 109,473 thousand, a significant improvement from a cash outflow of RMB (78,960) thousand in the same period of 2020[44]. - Current assets decreased from RMB 764,280 thousand to RMB 672,475 thousand, representing a decline of approximately 12.0%[35]. - Total assets decreased from RMB 1,667,422 thousand to RMB 1,477,302 thousand, a decline of approximately 11.4%[35]. Liabilities and Equity - Total liabilities decreased from RMB 1,129,385 thousand to RMB 989,772 thousand, a decrease of around 12.3%[35]. - Total equity decreased from RMB 538,037 thousand to RMB 487,530 thousand, reflecting a decline of about 9.4%[35]. - The company's share premium decreased from RMB 295,908 thousand to RMB 241,641 thousand, a decline of approximately 18.3%[39]. - The debt-to-equity ratio increased to 12.3% from 10.1% as of December 31, 2020[184]. Strategic Initiatives - The company aims to enhance its development in the quality education sector, including arts, sports, and performing arts[9]. - The group plans to enhance the "Le Xue" brand's business development, focusing on quality education in arts, sports, and other areas to meet diverse student needs[16]. - The company will actively close underperforming learning centers, which is expected to negatively impact future revenues[16]. - The company plans to focus on market expansion and new product development in the upcoming quarters[36]. - The company is committed to improving educational quality and service standards while fulfilling social responsibilities[18]. Risks and Challenges - The company anticipates negative impacts on financial performance and operational outlook due to regulatory changes in the education sector[159]. - The implementation of the "Double Reduction" policy is expected to require operational adjustments, potentially negatively impacting financial performance[198]. - The group continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management policies since December 31, 2020[64].
思考乐教育(01769) - 2021 - 中期财报