Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 241,324,000, representing a 25.6% increase from RMB 192,102,000 in the same period of 2023[14]. - Gross profit increased to RMB 103,337,000, up 35.6% from RMB 76,194,000 year-over-year, with a gross margin of 42.8%[14]. - The company reported a pre-tax profit of RMB 30,274,000, a decrease of 8.3% compared to RMB 33,003,000 in the same period of 2023[14]. - EBITDA for the six months ended June 30, 2024, was RMB 94,513,000, a slight increase of 3.4% from RMB 91,414,000 year-over-year[14]. - Basic and diluted earnings per share for the period were RMB 2.71, compared to RMB 2.94 in the same period last year, showing a decline of about 7.8%[100]. - Total comprehensive income for the period was RMB 35,345,000, down from RMB 39,608,000 in the previous year, representing a decrease of approximately 10.7%[100]. - The company reported a profit of RMB 30,972,000 for the period, contributing to a total comprehensive income of RMB 35,345,000[102]. Student and Teacher Metrics - The total number of full-time students as of June 30, 2024, was 24,439, reflecting a 4.3% increase from 23,423 in the previous year[15]. - The total number of full-time teachers increased to 819, up 3.4% from 792 in the previous year[15]. - The student retention rate was 98.3%, slightly down from 98.7% in the previous year[15]. - The employment rate for graduates as of June 30, 2024, is approximately 96.8%, a slight increase of 0.1% from 96.7% in the previous year[24]. - The average revenue per full-time student in vocational education increased to RMB 6,302, up by RMB 1,539 or 32.3% from RMB 4,763 in the same period last year[21]. Educational Offerings and Partnerships - The company operates 11 schools, including one private college and eight kindergartens, as of June 30, 2024[17]. - The company has established 13 industry colleges related to emerging industries, with a total of 29 programs co-developed with 18 enterprises[28]. - The company aims to enhance student capabilities and provide personalized educational services[16]. - The company is focused on integrating education and industry, with a strategy of vertical expansion through school-enterprise cooperation and mergers[16]. - The company has established partnerships with over 700 enterprises, including more than 60 Fortune 500 companies, to collaboratively train nearly 1,000 students annually[31]. Financial Position and Liabilities - As of June 30, 2024, the group had a net current liability of approximately RMB 240.2 million, with current assets decreasing from approximately RMB 674.3 million to RMB 623.6 million[55]. - The debt-to-asset ratio decreased to approximately 63.7% as of June 30, 2024, down from about 66.4% on December 31, 2023, mainly due to a significant reduction in contract liabilities from tuition and accommodation fees[57]. - The company had interest-bearing bank and other borrowings of approximately RMB 894.4 million, with repayment terms ranging from one to seven years and an effective annual interest rate between 4.3% and 10.44%[15]. - The company has capital commitments of RMB 14.2 million as of June 30, 2024, compared to RMB 13.6 million on December 31, 2023, with no authorized but uncontracted capital commitments[59]. Operational Efficiency and Cost Management - Cost of sales rose by approximately 19.0% from RMB 115.9 million to RMB 138.0 million, mainly driven by increased teaching costs due to higher student numbers[44]. - Selling expenses increased by approximately 33.4% from RMB 8.2 million to RMB 10.9 million, mainly due to higher recruitment advertising costs[48]. - Administrative expenses slightly decreased by approximately 0.8% from RMB 34.9 million to RMB 34.6 million, attributed to lower office rental costs[50]. - Financing costs surged by approximately 105.8% from RMB 15.8 million to RMB 32.6 million, primarily due to the cessation of capitalization of interest on loans for new campus construction[52]. Corporate Governance and Shareholder Information - The company has adopted the corporate governance code as per the listing rules and has complied with most of its recommended best practices[72]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the corporate governance code[72]. - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[74]. - The company has a total of 1,161,204,000 issued and fully paid ordinary shares as of June 30, 2024, unchanged from December 31, 2023[143]. Future Outlook and Strategic Initiatives - The company aims to enhance brand building and expand its educational offerings while focusing on sustainable development and creating higher value for shareholders and society[42]. - The company is focused on building a new education technology ecosystem, enhancing student engagement and academic planning services[34]. - The company emphasizes digital transformation to optimize overall management and operational efficiency across its educational platforms[38]. - The company aims to attract suitable talent for further development through the share incentive plan[91].
21世纪教育(01598) - 2024 - 中期财报