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银杏教育(01851) - 2024 - 中期业绩
GINGKO EDUGINGKO EDU(HK:01851)2024-08-23 10:07

Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Comprehensive Income The Group's total revenue increased by 9.7% to RMB 202 million, with gross profit rising 12.1% to RMB 130 million, leading to a 29.8% increase in profit for the period to RMB 107 million and basic EPS of RMB 0.21 Statement of Comprehensive Income Summary (RMB thousands) | Metric | Six Months Ended June 30, 2024 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 202,090 | 184,275 | +9.7% | | Gross Profit | 130,465 | 116,409 | +12.1% | | Operating Profit | 108,424 | 93,492 | +16.0% | | Profit for the Period | 106,626 | 82,158 | +29.8% | | Profit Attributable to Owners of the Company | 106,626 | 82,158 | +29.8% | | Basic and Diluted Earnings Per Share (RMB yuan) | 0.21 | 0.16 | +31.3% | - Net finance costs significantly decreased from RMB 10.85 million in the same period last year to RMB 1.35 million this year, primarily due to reduced interest expenses on borrowings2 Interim Condensed Consolidated Balance Sheet As of June 30, 2024, total assets decreased to RMB 1.367 billion due to lower cash, while total liabilities fell to RMB 476 million primarily from reduced contract liabilities, and total equity increased to RMB 891 million Balance Sheet Summary (RMB thousands) | Balance Sheet Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,366,948 | 1,459,398 | -6.3% | | Non-current Assets | 1,278,987 | 1,234,870 | +3.6% | | Current Assets | 87,961 | 224,528 | -60.8% | | Total Liabilities | 475,620 | 674,696 | -29.5% | | Non-current Liabilities | 246,598 | 281,721 | -12.5% | | Current Liabilities | 229,022 | 392,975 | -41.7% | | Total Equity | 891,328 | 784,702 | +13.6% | - The significant decrease in current assets was primarily due to cash and cash equivalents falling from RMB 216 million to RMB 74 million3 - The significant decrease in current liabilities was mainly due to contract liabilities (pre-received tuition and accommodation fees) falling from RMB 199 million to RMB 5.65 million, as revenue from the previous academic year was recognized during the reporting period321 Notes to the Interim Results General Information, Basis of Preparation & Accounting Policies The Group, primarily engaged in private higher education in China, prepares financial statements under HKAS 34, consistent with 2023 policies, with recent standard adoptions having no material impact - The Group is primarily engaged in providing private higher education services in China, with Mr. Fang Gongyu as the ultimate controlling shareholder4 - During the reporting period, amendments to Hong Kong Accounting Standards No. 1, No. 7, No. 16, and others were adopted, but the Group was not required to change its accounting policies or make retrospective adjustments as a result78 Financial Risk Management The Group manages market, credit, and liquidity risks, and despite net current liabilities of RMB 135 million, management anticipates no significant liquidity risk given expected tuition fee receipts of RMB 320 million - To manage liquidity risk, the Group monitors and maintains adequate cash levels, with management expecting future operating cash flows and continued bank support to sufficiently cover funding needs, posing no significant liquidity risk12 - The Group expects to receive approximately RMB 320 million in tuition fee revenue for the 2024 academic year by the end of September 2024, which will significantly improve its liquidity position12 Segment Information The Group operates as a single reportable segment, primarily providing private higher education services in China - The Group's business is classified as a single reportable segment, which is the provision of private higher education services in China18 Revenue Total revenue grew 9.7% to RMB 202 million, driven by a 12.7% increase in tuition and accommodation fees due to higher student enrollment, despite declines in catering and other income Revenue Breakdown (RMB thousands) | Revenue Source | First Half 2024 (RMB thousands) | First Half 2023 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Tuition Fees | 180,219 | 159,946 | +12.7% | | Accommodation Fees | 13,739 | 12,195 | +12.7% | | Catering Service Fees | 1,803 | 3,567 | -49.5% | | Others | 6,329 | 8,567 | -26.1% | | Total | 202,090 | 184,275 | +9.7% | - Tuition and accommodation fees are the Group's primary revenue sources, accounting for 96% of total revenue19 Income Tax Expense Yinxing College, as a private non-enterprise unit, is exempt from corporate income tax on academic education services, leading to a minimal income tax expense of RMB 0.449 million - Based on past tax compliance confirmations, Yinxing College's income derived from providing formal academic education services is exempt from corporate income tax31 - If Yinxing College chooses to register as a for-profit private school in the future, it may be subject to corporate income tax at a rate of 25%31 Earnings Per Share Basic and diluted earnings per share increased by 31.3% to RMB 0.21, up from RMB 0.16, primarily due to higher net profit Earnings Per Share Summary | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company (RMB thousands) | 106,626 | 82,158 | | Weighted Average Number of Ordinary Shares (thousands) | 500,000 | 500,000 | | Basic and Diluted Earnings Per Share (RMB yuan) | 0.21 | 0.16 | Dividend The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2024 - The Group neither paid nor declared any dividends during the reporting period, nor has it proposed any dividends subsequent to the period end3791 Details of Assets and Liabilities This section provides detailed information on the composition and changes of the Group's major assets and liabilities, including property, plant and equipment, and borrowings Property, Plant and Equipment Property, plant and equipment increased to RMB 1.211 billion due to ongoing investment in construction in progress, with RMB 3.161 million in borrowing interest capitalized - The net book value of construction in progress increased from RMB 233 million to RMB 284 million, primarily comprising buildings under construction in China43 - During the reporting period, the Group capitalized RMB 3.161 million in borrowing interest, compared to zero in the same period last year44 Borrowings Total borrowings slightly increased to RMB 345 million, with current borrowings rising to RMB 110 million, while the weighted average effective interest rate significantly decreased from 5.06% to 3.40% Borrowings Breakdown (RMB thousands) | Borrowing Classification | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Current Borrowings | 110,000 | 70,000 | | Non-current Borrowings | 234,790 | 269,790 | | Total Borrowings | 344,790 | 339,790 | - The weighted average effective interest rate for bank borrowings decreased from 5.06% at December 31, 2023, to 3.40% at June 30, 202456 Management Discussion and Analysis Business Overview and Outlook The Group, a Sichuan-based higher education provider, saw student enrollment grow 8.3% to 20,728, with the Naxi New Campus expansion due in 2024, and plans to consolidate market position, expand internationally, attract teachers, and diversify revenue - In the 2023/2024 academic year, Yinxing College's student enrollment increased by 8.3% to approximately 20,728 students67 - The Naxi New Campus expansion project is expected to be completed and operational by the 2024 academic year, providing additional student dormitories and supporting facilities71 - Future development strategies include: - Consolidating market position in the hotel management industry - Actively expanding overseas education and international cooperation - Continuously attracting and retaining quality teachers - Developing training courses to diversify revenue sources70 Financial Review Revenue grew 9.7% to RMB 202 million, driven by student enrollment and tuition increases, with gross margin improving to 64.6%, net finance costs significantly decreasing, and profit for the period rising 29.8% to RMB 107 million - Revenue growth of 9.7% was primarily attributable to (i) a 12.7% increase in tuition fees and (ii) a 12.7% increase in accommodation fees, driven by higher student enrollment and increased average charges72 - Gross margin increased from 63.2% to 64.6%, as revenue growth outpaced the increase in cost of sales74 - Net finance costs significantly decreased from RMB 10.9 million to RMB 1.3 million, primarily due to reduced interest expenses on borrowings79 - As a combined effect, profit for the period increased by 29.8% to RMB 106.7 million81 Liquidity and Financial Resources Cash and cash equivalents significantly decreased by 65.5% to RMB 74.4 million, while the gearing ratio increased from 15.8% to 30.3% - Cash and cash equivalents decreased by 65.5% from RMB 215.7 million to RMB 74.4 million81 - The gearing ratio increased from 15.8% at December 31, 2023, to 30.3% at June 30, 202481 - As of June 30, 2024, the Group had approximately RMB 209.6 million in construction in progress and buildings, and RMB 3.5 million in land use rights pledged to secure bank borrowings of RMB 304.8 million89 Employee and Remuneration Policy The Group's employee count increased to 1,088, with remuneration policies based on market conditions and individual performance, and employees participating in social insurance schemes - As of June 30, 2024, the Group had 1,088 employees, compared to 960 at December 31, 202390 Other Information Corporate Governance The Company largely complied with the Corporate Governance Code, with the only deviation being the combined roles of Chairman and CEO, which the Board believes provides strong leadership - The Company deviated from Rule C.2.1 of the Corporate Governance Code, which stipulates that the roles of Chairman and Chief Executive Officer should be separate; currently, both positions are held by Mr. Fang Gongyu92 Share-related Information Neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, and sufficient public float was maintained - During the reporting period, neither the Company nor its subsidiaries engaged in any purchase, sale, or redemption of shares93