Financial Performance - For the six months ended February 28, 2023, the company reported revenue of RMB 2,775 million, an increase of 18% from RMB 2,351 million in the same period of 2022[15]. - Gross profit for the same period was RMB 1,593 million, up from RMB 1,394 million, reflecting a gross margin improvement[15]. - The company achieved an operating profit of RMB 1,257 million, representing a 20% increase compared to RMB 1,043 million in the previous year[15]. - Net profit attributable to the owners of the company was RMB 977 million, a decrease of 16% from RMB 1,169 million in the prior year[15]. - Adjusted net profit for the period was RMB 1,045 million, up from RMB 908 million, indicating a 15% growth[15]. - The higher vocational education segment's revenue increased from RMB 1,947 million to RMB 2,348 million, representing a growth of 20.6%[25]. - The international education segment's revenue surged by 44.6%, from RMB 74 million to RMB 107 million, due to an increase in new student enrollments following the lifting of COVID-19 entry restrictions[27]. - The adjusted EBITDA for the six months ended February 28, 2023, was RMB 1,676 million, an increase from RMB 1,407 million in the same period of 2022[21]. - The profit for the period was RMB 1,036 million, a decrease of 14% from RMB 1,207 million in the previous year[88]. - The profit before tax for the group was RMB 1,069 million, compared to RMB 1,229 million for the same period in the previous year, indicating a decrease of approximately 13%[100]. Operational Highlights - The company operates in China, Australia, and the UK, enhancing its international presence and educational offerings[13]. - The company is focused on strengthening its "dual-teacher" model and expanding its vocational education capabilities[13]. - The company has achieved ISO-9001 international quality management system certification, underscoring its commitment to quality education[13]. - The company has increased its employee count to 14,925 as of February 28, 2023, representing a 15.6% increase from the previous year due to organic growth in existing schools and new districts[49]. - The company plans to utilize 70% of the net proceeds from previous placements for the expansion and development of new campuses in the Greater Bay Area[44]. Financial Position - Cash reserves increased to RMB 5,874 million as of February 28, 2023, up from RMB 5,521 million as of August 31, 2022[38]. - Total assets for properties, campuses, and equipment grew by 5.7% to RMB 16,593 million as of February 28, 2023, from RMB 15,700 million as of August 31, 2022[36]. - The company reported a total net asset of approximately RMB 34.87 billion and cash reserves of approximately RMB 5.87 billion as of February 28, 2023[80]. - The total liabilities decreased to RMB 8,402 million from RMB 9,386 million as of August 31, 2022[90]. - The company’s total assets increased to RMB 18,209 million as of February 28, 2023, compared to RMB 15,853 million at the same time last year[91]. Shareholder Information - The board declared an interim dividend of RMB 0.1638 per share, equivalent to HKD 0.1858, representing approximately 40% of the adjusted net profit attributable to the owners of the company[53]. - Major shareholders hold significant stakes, with the largest shareholder owning 1,507,900,000 shares, also representing approximately 59.36%[61]. - The company reported a total of 2,551,084,455 shares issued as of February 28, 2023[61]. - The company completed a placement agreement on January 9, 2023, issuing a total of 147,000,000 shares at a price of HKD 10.94 per share, raising approximately HKD 1.6 billion net after costs[46]. - The company repurchased a total of 3,923,000 shares at a total cost of approximately HKD 22.18 million during the six months ended February 28, 2023[55]. Debt and Financing - Financing costs rose from RMB 135 million to RMB 190 million, primarily due to increased interest expenses from bank loans and bonds[33]. - The company has a long-term loan agreement with the International Finance Corporation (IFC) for a maximum amount of USD 200 million, with a term of up to seven years[82]. - The company also has a loan agreement with banks for USD 189.5 million, with a maximum term of seven years[83]. - The total bank and other borrowings and bonds as of February 28, 2023, was RMB 8.42 billion, a decrease from RMB 8.89 billion as of August 31, 2022[15]. Compliance and Governance - The company has complied with all provisions of the corporate governance code as of February 28, 2023[57]. - The audit committee reviewed the unaudited consolidated financial statements for the six months ended February 28, 2023[58]. - The company has established a compensation structure for employees based on qualifications, experience, performance, and market levels, ensuring compliance with local labor laws[49]. - There were no reported disagreements between departing executives and the board[59]. Future Outlook - The company plans to continue expanding its market presence and developing new products and technologies[68]. - The company expects to continue its market expansion and product development initiatives in the upcoming periods, focusing on enhancing educational services and technology integration[116]. - The group anticipates sufficient resources to continue operations for at least the next twelve months, based on internal funding and expected bond issuance[95].
中教控股(00839) - 2023 - 中期财报