Education Network and Growth - The group operates a network of 12 schools in China, including top private universities and four schools in the Guangdong-Hong Kong-Macao Greater Bay Area, along with one higher education institution in Sydney, Australia, and a dual-degree university in London, UK [17]. - The group is the largest publicly listed higher and vocational education group in China by student enrollment [17]. - The newly incorporated Chengdu Jincheng College, which joined the group in September 2021, ranks first among private independent colleges in China according to recent rankings [20]. - The total number of enrolled students reached approximately 309,000 as of February 28, 2022, representing a 23.4% increase from 250,339 students on February 28, 2021 [21]. - The higher vocational education segment saw significant growth with 250,385 students, up from 183,409 in the previous year, while the international education segment decreased to 2,782 students from 3,244 [22]. - The company plans to enhance its educational capacity with new campuses in the Guangdong-Hong Kong-Macao Greater Bay Area and a fourth campus in Australia [25]. - The new campus in Zhaoqing, Guangdong, is expected to accommodate an additional 9,000 students in its second phase, with a total capacity of 6,000 students in the first phase completed in September 2021 [27]. - The company anticipates a strong recovery in international student enrollment following the lifting of entry restrictions in Australia [21]. - The group expects a significant increase in new student enrollment in the next reporting period following the lifting of entry restrictions [39]. Financial Performance - Revenue for the six months ended February 28, 2022, was RMB 2,350,612, an increase of 29% from RMB 1,823,438 for the same period in 2021 [31]. - Net profit for the same period was RMB 1,206,343, up from RMB 852,239, reflecting a growth of 41.5% [31]. - The adjusted net profit for the six months ended February 28, 2022, reached RMB 946.4 million, an increase from RMB 777.5 million for the same period in 2021, representing a growth of 21.7% [34]. - The adjusted EBITDA for the same period was RMB 1,406.9 million, compared to RMB 1,100.9 million in 2021, reflecting a growth of 27.7% [37]. - Total revenue for the group reached RMB 2,350.6 million, up 28.9% from RMB 1,823.4 million in the previous year [39]. - The revenue from the higher vocational education segment increased by 44.2%, from RMB 1,349.7 million to RMB 1,946.3 million [39]. - The international education segment's revenue decreased to RMB 74.0 million, down from RMB 115.1 million, primarily due to COVID-19 related restrictions [39]. - The group's gross profit for the six months ended February 28, 2022, was RMB 1,393.2 million, an increase of 29.3% from RMB 1,077.5 million for the same period in 2021, with a gross margin of 59.3% [40]. - The company reported a total comprehensive income of RMB 1,203,131 thousand for the period, compared to RMB 855,826 thousand in the previous year, an increase of 40.6% [88]. Strategic Initiatives and Compliance - The group believes that national efforts to improve vocational education and increase graduate income will make its programs more attractive to future students [18]. - The policy aims to elevate the overall level of vocational education in China to be among the world's top by 2035 [19]. - The group focuses on providing high-quality education through innovation, aligning with national strategies for vocational training [18]. - The group has a mission to lead students to success through excellence and innovation in education [17]. - The group is committed to expanding its school network and enhancing educational offerings in response to favorable government policies [20]. - The group emphasizes the importance of industry-education integration and encourages social capital participation in vocational education [20]. - The company has adopted a prudent treasury policy and maintained a robust liquidity structure as of February 28, 2022 [47]. - The company has complied with all provisions of the corporate governance code as per the listing rules as of February 28, 2022 [57]. Capital Management and Investments - The company issued RMB 500 million offshore RMB bonds rated "AA" by S&P, marking the first investment-grade offshore RMB bond issued by a Chinese education company [29]. - The company raised approximately RMB 1,170.0 million from a placement completed on October 27, 2021, intended for potential acquisitions in the modern vocational education sector [50]. - The company issued convertible bonds totaling HKD 2,355,000,000 at an annual interest rate of 2.0%, maturing in 2024, to support ongoing business development [77]. - The company completed the acquisition of 100% equity in Longxing Investment Co., Ltd. during the reporting period, enhancing its market presence [100]. - The company reported a total of RMB 2,784,201 in other payables and accrued expenses as of February 28, 2022, compared to RMB 2,748,451 on August 31, 2021, indicating a slight increase in liabilities [139]. - The company has a significant amount of RMB 435,505 in deferred cash consideration related to past acquisitions, reflecting ongoing financial commitments [137]. Employee and Operational Metrics - As of February 28, 2022, the group had 12,908 employees, an increase of 20.8% from 10,688 employees on February 28, 2021, primarily due to the inclusion of new school employees during the reporting period [53]. - Employee costs increased to RMB 687,734,000 for the six months ended February 28, 2022, compared to RMB 478,026,000 in the previous year, reflecting a rise of about 43.8% [118]. - The company's short-term employee benefits for key management increased to RMB 9,156,000 compared to RMB 8,309,000 in the previous period [188]. Future Outlook and Market Expansion - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 20% driven by new product offerings and market expansion strategies [192]. - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years [192]. - A strategic acquisition of a local education technology firm is expected to be finalized by Q3 2022, which will enhance the company's digital capabilities [192]. - The company has launched a new online learning platform, which has already attracted over 50,000 users within the first month of operation [192]. - The company aims to increase its investment in research and development by 25% to foster innovation in educational products [192].
中教控股(00839) - 2022 - 中期财报