Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 597,891,000, representing a 36.0% increase compared to RMB 439,604,000 for the same period in 2020[6] - Gross profit for the same period was RMB 257,492,000, reflecting a 64.0% increase from RMB 156,965,000 in 2020[6] - Operating profit increased by 55.0% to RMB 186,961,000 from RMB 120,596,000 year-over-year[6] - Adjusted net profit for the six months ended June 30, 2021, was RMB 142,521,000, a 41.5% increase from RMB 100,707,000 in 2020[6] - Profit attributable to owners of the company was RMB 108,587,000, up 50.1% from RMB 72,366,000 in the same period last year[6] - Total other income increased by 14.3% to RMB 46,751,000 from RMB 40,897,000 in 2020[6] - The company reported a net finance cost of RMB 27,790,000, which is a 62.8% increase from RMB 17,066,000 in the previous year[6] - The adjusted net profit margin for the six months ended June 30, 2021, was 23.8%, compared to 22.9% for the same period in 2020[72] - The company reported a net profit of RMB 108,587 thousand for the period, compared to a profit of RMB 72,366 thousand in the same period last year, representing an increase of approximately 50%[145] Student Enrollment and Educational Services - The number of enrolled students across the three universities reached 39,084 as of June 30, 2021, representing a 10.4% increase from the previous year[23] - Full-time higher education services generated RMB 470.2 million, accounting for 78.7% of total revenue, with a growth of 37.0% compared to RMB 343.2 million in 2020[10] - Total student enrollment as of June 30, 2021, reached 39,084, an increase of 3,696 students or 10.4% compared to 35,388 in 2020[24] - The number of new admissions for the 2021/2022 academic year increased by 1,497, representing a growth rate of 10.2% compared to the previous year[26] - Enrollment in continuing education programs reached a record high of 4,302 new students, with total enrollment in continuing education at 10,196, a 95.9% increase from the previous year[42] - The company introduced new undergraduate programs in virtual reality technology, medical imaging technology, artificial intelligence, and big data management for the 2021/2022 academic year[22] Campus Expansion and Development - The expansion project for Dalian College is nearing completion, with the new campus expected to accommodate approximately 8,000 students[11] - Chengdu College's new campus is projected to be completed in the second half of 2021, with a capacity for about 5,000 students[13] - Guangdong College's expansion includes a research and development center and dormitories, expected to add approximately 4,000 beds upon completion[15] - The company signed a cooperation agreement to establish Fujian Dongruan College, which will have a planned area of approximately 1,637 acres and a construction area of about 290,000 square meters[17] - The company has established a modern industry college in cooperation with Meizhou Bay Vocational Technical College, which can accommodate about 3,000 students[18] Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2021, were RMB 878.9 million, down from RMB 1,426.1 million as of December 31, 2020[74] - Total borrowings as of June 30, 2021, amounted to approximately RMB 2,000.2 million, an increase from RMB 1,153.3 million as of December 31, 2020[74] - The current ratio as of June 30, 2021, was 1.06, up from 0.92 as of December 31, 2020[76] - The debt-to-equity ratio as of June 30, 2021, was 163.6%, significantly higher than 67.5% as of December 31, 2020[81] - Cash used in operating activities amounted to RMB 270,348 thousand, an increase from RMB 176,881 thousand in the previous year, indicating higher operational expenditures[151] - The company invested RMB 490,830 thousand in the purchase of property, plant, and equipment, significantly up from RMB 121,555 thousand in the prior year[151] Research and Development - Research and development expenses surged by 128.5% to RMB 21,755,000 compared to RMB 9,520,000 in the previous year[6] - The company plans to continue investing in research and development of educational methodologies and technologies, focusing on a three-in-one R&D system to support its business development[96] - New educational resources developed for 9 emerging majors, including Artificial Intelligence and Big Data Management[51] Market Strategy and Future Plans - The company aims to expand its market presence and enhance its innovative education solutions to empower students[6] - The company is actively expanding its market presence by optimizing product structure and launching new courses and services to better meet customer needs[100] - The company is committed to advancing the integration of industry and education, supported by national policies that promote high-quality development in vocational education[95] Shareholder Information - The company holds a significant ownership structure, with Liu Jiren owning 74.14% of the company through controlled entities[102] - The company has implemented a pre-IPO share incentive plan, granting 50,000,000 share options to 246 participants, representing approximately 7.5% of the total issued shares as of June 30, 2021[113] - Kang Ruidao holds a beneficial interest of 150,245,000 shares, representing 22.54% of the company's equity[107] - The company’s major shareholders include Dongsoft International with 37.63% and Dongsoft Holdings with 37.63% in controlled corporation interests[107] Financial Risks and Management - The group faces various financial risks, including market risk, credit risk, and liquidity risk, with management focused on minimizing potential adverse impacts[163] - The group has not experienced significant changes in liquidity risk management policies as of June 30, 2021[164]
东软教育(09616) - 2021 - 中期财报