Revenue and Profitability - The total revenue for the six months ended June 30, 2020, was RMB 81,439,000, a decrease of 3.3% compared to RMB 84,224,000 in the same period of 2019[12]. - Revenue decreased by approximately 3.3% from RMB 842 million to RMB 814 million, primarily due to a 92.9% drop in catering service fees and a 34.9% decline in accommodation fees due to COVID-19[18]. - Revenue for the six months ended June 30, 2020, was RMB 84,224 thousand, a slight decrease from RMB 81,439 thousand in the same period of 2019, representing a decline of approximately 2.4%[83]. - Net profit decreased by 9.5% from RMB 230 million to RMB 208 million[32]. - Adjusted net profit decreased by 23.5% from RMB 272 million to RMB 208 million[34]. - Operating profit decreased to RMB 23,580 thousand from RMB 21,706 thousand, reflecting a decline of approximately 7.9%[83]. - The profit attributable to equity holders of the company for the six months ended June 30, 2020, was RMB 20,783,000, down from RMB 22,977,000 in the same period of 2019, reflecting a decrease of approximately 9.6%[139]. Tuition and Enrollment - Tuition fees increased by 7.6% to RMB 76,517,000 from RMB 71,120,000, while accommodation fees decreased by 34.9% to RMB 3,519,000[13]. - The number of students enrolled at Ginkgo Hotel Management College rose by 8.3% to approximately 11,100 in the 2019/2020 academic year, up from about 10,200 in the previous year[8]. - The number of graduates from Ginkgo College increased by 7.4% to 2,683 in June 2020, compared to the previous academic year[8]. Campus Development and Strategic Initiatives - The group is constructing a new campus in Yibin, Sichuan Province, with the first phase expected to gradually commence operations in the second half of 2020[17]. - The group successfully applied to terminate its cooperation with Chengdu University of Information Technology and transitioned Ginkgo College to a private higher education institution, which is expected to reduce joint teaching support costs[16]. - The group plans to actively pursue overseas education initiatives and strengthen international cooperation with foreign educational institutions and enterprises[14]. - The group aims to enhance market penetration and teaching quality to solidify its position in the Chinese hotel management industry[14]. - The group anticipates that the transition to a private institution will create opportunities for quality enhancement and increased enrollment[16]. Financial Position and Cash Flow - Cash and cash equivalents decreased by approximately 39.8% from RMB 2,275 million to RMB 1,369 million[38]. - Net cash used in operating activities was RMB 472 million, compared to RMB 433 million in the previous period[38]. - Net cash used in investing activities was RMB 312 million, a significant decrease from RMB 1,113 million in the previous period[38]. - As of June 30, 2020, the group's borrowings amounted to RMB 425.5 million, slightly up from RMB 423.7 million as of December 31, 2019[39]. - The debt-to-equity ratio as of June 30, 2020, was 56.2%, a significant increase from 39.5% as of December 31, 2019[40]. - The group's current liabilities net amount was RMB 25.1 million as of June 30, 2020, down from RMB 68.5 million as of December 31, 2019[40]. - The company anticipates future cash flow needs to be met through operating cash flow and continued support from banks[109]. Expenses and Cost Management - Sales costs reduced by about 5.9% from RMB 428 million to RMB 403 million, mainly due to decreased student activity and cafeteria expenses caused by COVID-19[19]. - Administrative expenses increased from RMB 186 million to RMB 213 million, attributed to increased employee benefits and operational costs for the new campus[24]. - Operating profit for the six months ended June 30, 2020, was impacted by employee benefits expenses of RMB 32,383 thousand, up from RMB 29,823 thousand in 2019[127]. - Depreciation and amortization expenses increased to RMB 13,383 thousand from RMB 9,833 thousand, reflecting a rise of 36.0%[127]. - Financial expenses net amounted to RMB (745) thousand, compared to RMB (440) thousand in the previous year, indicating an increase in financial costs[129]. Shareholder Information and Corporate Governance - As of June 30, 2020, Vast Universe holds 366,562,500 shares, representing approximately 73.3% of the issued share capital[57]. - GreenTree Hospitality Group Ltd. and its controlled entities, including Xu Shuguang, own 41,336,000 shares, accounting for 8.3% of the issued share capital[57]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2020[60]. - The board of directors has adopted the corporate governance code and has complied with its provisions, except for a deviation regarding the roles of the chairman and CEO[61]. - No interim dividend was declared for the six months ending June 30, 2020[64]. Risk Management and Compliance - The group is exposed to foreign exchange risks primarily related to USD and HKD, with no current foreign currency hedging policies in place[45]. - The company has not adopted any new accounting standards that would have a significant financial impact during the reporting period[101]. - The financial risk management policies have remained unchanged since the end of the last fiscal year[107]. - The company’s interim financial data has not been audited, which may affect the reliability of the reported figures[97]. - There were no significant matters related to the group's business or financial performance noted after June 30, 2020[71].
银杏教育(01851) - 2020 - 中期财报