Enrollment and Capacity - Total enrollment increased to 73,931, up by 23.0% from 60,116 in the previous year[11] - Total student capacity increased to 82,500, reflecting a growth of 17.9% from 70,000[11] - The company operates 15 boarding schools with a total student capacity of approximately 82,500 after the addition of Huizhou Huiyang Experimental Primary School[31] - The total estimated capacity of existing schools increased from approximately 70,000 students to about 82,500 students between February 29, 2020, and February 28, 2021[92] - The school capacity is expected to reach 91,000 students for the 2021/2022 academic year, with an increase of 2,500 students from Guangzhong Experimental School and 6,000 students from three new schools under construction in Guangdong Province[99] - The maximum estimated capacity of the group could expand to approximately 170,000 students if all available land use rights are fully utilized[99] Financial Performance - Revenue for the six months ended February 28, 2021, was RMB 1,090,804, representing a 17.0% increase from RMB 932,172[11] - Core net profit rose to RMB 376,265, a 30.5% increase compared to RMB 288,267 in the prior period[11] - Total revenue increased by 17.0% to RMB 1,090.8 million for the six months ended February 28, 2021, compared to RMB 932.2 million for the same period in 2020[53] - Net profit for the period increased by 25.1% from RMB 2,584 million for the six months ended February 29, 2020, to RMB 3,232 million for the six months ended February 28, 2021[69] - Basic earnings per share rose to RMB 15.00, up from RMB 12.65, marking an 18.6% increase[156] - Gross profit increased by 16.6% to RMB 508.1 million, maintaining a stable gross margin of 46.6%[58] Revenue Sources - Tuition and accommodation fees accounted for 72.1% of total revenue, amounting to RMB 786.5 million, reflecting a 17.2% increase due to higher enrollment numbers[40][41] - Revenue from supporting services reached RMB 301,438 thousand, a 15% increase from RMB 261,320 thousand in the previous year[185] - The segment performance for schools reported a profit of RMB 505,304 thousand, compared to RMB 435,625 thousand for the same period last year, reflecting a growth of 16%[188] Expenditures and Costs - Capital expenditure on property, plant, and equipment was RMB 704,144, up 44.4% from RMB 487,796[17] - Employee costs increased due to the rise in teacher numbers from approximately 3,818 to about 4,815[55] - Sales expenses increased by 9.7% from RMB 202 million for the six months ended February 29, 2020, to RMB 221 million for the six months ended February 28, 2021, primarily due to increased enrollment costs[61] - Administrative expenses rose by 2.8% from RMB 1,401 million for the six months ended February 29, 2020, to RMB 1,440 million for the six months ended February 28, 2021, mainly due to increased employee expenses[63] Cash Flow and Financing - Cash generated from operating activities increased by 40.1% to RMB 350,495 from RMB 250,208[17] - The net cash generated from operating activities was RMB 350,495,000, an increase from RMB 250,208,000 in the same period of 2020, representing a growth of approximately 40%[168] - The net cash used in investing activities for the same period was RMB (935,867,000), compared to RMB (224,989,000) in 2020, indicating a significant increase in investment outflows[168] - The company completed a placement of 130,000,000 new shares at a price of HKD 4.24 per share, raising net proceeds of approximately HKD 545.7 million (equivalent to about RMB 487.7 million) for school development in China and general corporate purposes[115] Strategic Initiatives - The company aims to expand its educational services and enhance its reputation through strategic acquisitions and partnerships in the education sector[29] - The company plans to establish new schools in cities such as Chaozhou, Jiangmen, and Zhongshan, with a maximum student capacity of 8,000, 7,500, and 11,000 respectively[93] - The company is exploring expansion opportunities beyond Guangdong Province, including Sichuan Province[90] - The company plans to establish a private higher education institution to offer diploma courses in advanced technology fields, responding to the growing demand for high-end technical personnel in South China[88] Governance and Compliance - The board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[143] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ended February 28, 2021[145] - The company confirmed compliance with the standards of the code of conduct for securities transactions by directors during the six months ended February 28, 2021[142] Taxation and Financial Position - Tax expenses decreased by 58.0% from RMB 622 million for the six months ended February 29, 2020, to RMB 261 million for the six months ended February 28, 2021, resulting in effective tax rates of 7.5% and 19.4% respectively[68] - The income tax expense for the six months ended February 28, 2021, was RMB 26,128,000, a decrease of 58.5% from RMB 64,479,000 in the same period of 2020[195] - The company’s non-profit schools generated tax-exempt income of RMB 778,910,000 for the six months ended February 28, 2021, up from RMB 670,852,000 in the previous year, reflecting a growth of 16.1%[199]
光正教育(06068) - 2021 - 中期财报