Enrollment and Student Performance - As of June 30, 2019, the total number of students enrolled at Ginkgo Academy reached approximately 10,200, representing a 6.3% increase from about 9,600 students in the previous academic year[6] - The employment rate for graduates from Ginkgo Academy was approximately 92.2%, indicating strong job placement success[6] - The number of graduates from Ginkgo Academy in June 2019 was 2,497, reflecting the effectiveness of its practical curriculum[6] Financial Performance - The total revenue for the six months ended June 30, 2019, was RMB 84,224,000, an increase of 2.3% compared to RMB 82,338,000 in the same period of 2018[12] - Net profit rose by 16.8% from RMB 197 million to RMB 230 million for the six months ended June 30, 2019[30] - Operating profit before tax increased by 9.6% from RMB 211 million to RMB 231 million[28] - The group's revenue increased by approximately 2.3% from RMB 823 million for the six months ended June 30, 2018, to RMB 842 million for the six months ended June 30, 2019, primarily due to an increase in tuition and accommodation fees[17] Revenue Sources - Tuition fees contributed RMB 71,120,000, up 5.4% from RMB 67,463,000, while accommodation fees increased by 15.0% to RMB 5,404,000[12] - The company intends to diversify its revenue sources by further developing training programs under the Ginkgo Academy brand[13] Costs and Expenses - The cost of sales rose by about 6.5% from RMB 402 million to RMB 428 million, mainly due to increased employee benefits expenses resulting from a rise in the number of teachers and staff[18] - Gross profit decreased from RMB 421 million to RMB 414 million, with the gross profit margin declining from approximately 51.2% to 49.2%[20] - Employee benefit expenses increased to RMB 29,823 for the six months ended June 30, 2019, up from RMB 22,452 in the same period of 2018, representing a rise of about 32.9%[131] Cash Flow and Liquidity - Cash and cash equivalents decreased by approximately 4.8% from RMB 1,148 million at December 31, 2018, to RMB 1,093 million at June 30, 2019[31] - The net cash used in operating activities was RMB (43,302) thousand, compared to RMB (80,558) thousand for the same period in 2018, indicating a significant improvement[92] - The financing activities generated a net cash inflow of RMB 148,997 thousand, up from RMB 90,243 thousand in the previous year, reflecting increased borrowing activities[92] Investments and Capital Expenditures - The group has committed but unprovided capital expenditures of approximately RMB 566.7 million, primarily related to the investment in the new campus in Nanjing[36] - The group acquired land use rights for a total consideration of approximately RMB 155 million and entered into a construction contract worth RMB 210 million for the first phase of the Nanjing new campus[42] - The company has committed to invest approximately RMB 600 million in the construction of the new campus in Nanxi, Yibin, with actual investment amounts subject to future contracts with builders[194] Debt and Financial Position - As of June 30, 2019, the group's borrowings amounted to RMB 115.5 million, an increase from RMB 104.6 million as of December 31, 2018[32] - The group's debt-to-equity ratio was 1.3% as of June 30, 2019, indicating a stable financial position[35] - The group has unutilized bank financing totaling RMB 700.0 million as of June 30, 2019[32] Future Plans and Strategies - The company aims to enhance market penetration and teaching quality to solidify its position in the Chinese hotel management industry[13] - Ginkgo Education Group plans to actively pursue international collaborations with overseas educational institutions and enterprises[13] - The group plans to establish a comprehensive curriculum focused on practical skills applicable to the hotel management industry in the second half of 2019[15] Government Support and Grants - The group recognized a government grant related to land use rights amounting to RMB 149,513 thousand during the reporting period[92] - As of June 30, 2019, the total amount of government subsidies granted for the establishment of the new campus in Yibin, Sichuan, is approximately RMB 149,513,000[150] Shareholder Information - The company has a major shareholder, Vast Universe, holding approximately 73.3% of the issued share capital[49] - The company reported no interim dividend for the six months ended June 30, 2019, as decided in the board meeting held on August 30, 2019[59] Risk Management - The group maintains a liquidity risk management strategy, ensuring sufficient cash and cash equivalents to support operations and mitigate cash flow volatility[111] - The group is exposed to foreign exchange risk primarily related to the Hong Kong dollar, with no current foreign currency hedging policy in place[37] - The group’s financial risk management includes monitoring market risks such as foreign exchange and interest rate risks[108]
银杏教育(01851) - 2019 - 中期财报