Financial Performance - Revenue for the six months ended February 28, 2019, was RMB 801,013,000, representing a 54.9% increase compared to RMB 517,105,000 for the same period in 2018[9] - Gross profit for the same period was RMB 456,572,000, reflecting a 70.8% increase from RMB 267,291,000 year-over-year[9] - Profit attributable to equity holders of the company was RMB 330,391,000, up 63.8% from RMB 201,731,000 in the previous year[9] - Adjusted revenue for the six months was RMB 801,013,000, a 51.7% increase from RMB 528,022,000 in 2018[9] - Adjusted gross profit was RMB 480,163,000, which is a 65.6% increase compared to RMB 289,921,000 in the prior year[9] - The net profit attributable to equity holders for the six months ended February 28, 2019, was RMB 340.4 million, an increase of RMB 92.2 million or 37.1% compared to RMB 248.2 million in the same period of 2018[26] - Operating profit for the six months ended February 28, 2019, was RMB 376.0 million, compared to RMB 207.6 million in the same period of 2018[44] - The total comprehensive income for the period was RMB 363,920,000, with a profit of RMB 330,391,000[130] - The company reported a basic earnings per share of RMB 0.10 for the six months ended February 28, 2019, compared to RMB 0.06 for the same period in 2018[123] School Operations and Expansion - The company has been operating private schools in Henan Province for over 18 years, positioning itself as a major operator in the Central China region based on enrollment numbers[16] - The group operated 29 schools as of February 28, 2019, compared to 27 schools as of February 28, 2018, indicating a stable growth in the school network[20] - The group plans to continue improving educational infrastructure and expanding its school network to ensure quality education for students[19] - The increase in revenue was primarily due to higher enrollment and tuition fees from multiple schools, as well as the financial performance of acquired companies being consolidated into the group[27] - The group aims to explore potential acquisition targets or collaboration opportunities both in China and overseas to expand its school network[25] Acquisitions and Investments - The group completed the acquisition of Thai Education Holdings Co., Ltd. and Fareast Stamford International Co., Ltd. for approximately USD 27.87 million, which was finalized on February 28, 2019[17] - The group agreed to purchase 70% of the equity of Yubo Education for a cash consideration of RMB 107.1 million, aiming to acquire its wholly-owned subsidiary, Bowang High School[55] - The acquisition of 70% of Yubo Education was completed for a cash consideration of RMB 107,100,000[143] - The acquisition of TEDCO was finalized on February 12, 2019, for RMB 63,639,000, resulting in TEDCO becoming a subsidiary of China Yuhua Education Investment Limited[147] - Following the acquisition, the group holds 99.9999% equity in Fareast Stamford International Co., Ltd. (FES)[147] Financial Position and Cash Flow - Cash and cash equivalents increased by 340.5% to RMB 1,150.2 million as of February 28, 2019, compared to RMB 261.1 million as of February 28, 2018[50] - The current ratio as of February 28, 2019, was 1.22, up from 0.98 as of February 28, 2018[50] - The net cash flow from operating activities was RMB 312,702,000, compared to RMB 26,443,000 in the previous year[138] - The company reported a net cash outflow from investing activities of RMB 1,613,587,000, significantly higher than RMB 908,612,000 in the prior year[138] - The financing activities generated a net cash inflow of RMB 860,810,000, compared to RMB 523,511,000 in the previous year[138] Shareholder Information - The company declared an interim dividend of HKD 0.061 per share for the six months ended February 28, 2019, compared to HKD 0.047 per share in 2018[68] - The total number of issued shares as of February 28, 2019, was 3,284,758,210 shares[94] - The company’s directors and senior management hold significant stakes, with Mr. Li owning approximately 65.67% and Ms. Li owning approximately 65.82% of the company[91] - The company aims to enhance overall shareholder value through its stock option plan[109] Regulatory and Compliance - The board will closely monitor the implementation of the "Opinions on Deepening Reform and Standardizing Development of Preschool Education" issued by the Central Committee of the Communist Party of China and the State Council[16] - The company has established an audit committee to review and supervise financial reporting and risk management[71] - The company has not reported any updates on compliance with qualification requirements for foreign investors in Sino-foreign cooperative education institutions since the publication of the prospectus[88] Accounting Standards - The group has adopted new accounting standards effective from September 1, 2018, including IFRS 9 and IFRS 15, which require changes in accounting policies[158] - The company adopted IFRS 15 for revenue recognition starting September 1, 2018, which replaced IAS 18 and IAS 11, with no significant impact on retained earnings[188] - The company recognizes revenue when control of goods or services transfers to customers, with tuition and boarding fees generally collected in advance and recognized proportionally over the applicable course period[189] - The company assesses expected credit losses on trade receivables using a simplified approach under IFRS 9, recognizing lifetime expected losses upon initial recognition[186]
宇华教育(06169) - 2019 - 中期财报