Financial Performance - The total revenue for the six months ended February 28, 2022, was RMB 298.7 million, an increase of 15.2% from RMB 259.2 million for the same period in 2021[9][18]. - Gross profit for the same period was RMB 85.7 million, reflecting an 8.2% increase from RMB 79.2 million in the previous year[10]. - The net profit for the period was RMB 7.6 million, a significant turnaround from a loss of RMB 63.7 million in the prior year, marking an increase of 111.9%[11]. - Earnings attributable to equity holders of the parent reached RMB 10.1 million, compared to a loss of RMB 59.8 million in the previous year, representing a 117.0% increase[12]. - Revenue increased by RMB 39.4 million (or 15.2%) to RMB 298.7 million for the six months ended February 28, 2022, compared to RMB 259.2 million for the same period last year[42]. - Tuition revenue rose by RMB 29.9 million (or 13.8%) to RMB 245.7 million, driven by an increase in student enrollment[42]. - The company reported a profit before tax of RMB 10,101,000, a significant recovery from a loss of RMB 54,710,000 in the previous year[100]. - The company reported a net loss of RMB 1,797,535,000 for the period, compared to a profit in the previous year[108]. Student Enrollment and Education Services - The number of students enrolled in self-operated schools reached 22,967, with high school enrollment at 4,449 and university enrollment at 18,518[3]. - Total student enrollment as of February 28, 2022, reached 22,967, a 9.7% increase from 20,928 in the previous year[23]. - The company operates 8 schools across five cities in Sichuan Province, maintaining a strong reputation in the private education sector for over 20 years[4]. - The company plans to establish new high schools in Sichuan, with a total expected capacity of 9,870 students across multiple locations[26]. - Virscend University is expected to achieve full accreditation by September 2022, enhancing its educational offerings[3]. Tuition Fees and Revenue Generation - Tuition fees generated RMB 245.7 million, up 13.8% from RMB 215.8 million in the previous year, driven by increased student enrollment[19][20]. - Average tuition fees for domestic high schools increased from RMB 35,359 to RMB 37,998, while international high school fees rose from RMB 104,973 to RMB 107,548[21]. - The current tuition fees for high schools range from RMB 30,000 to RMB 58,000, while university fees are RMB 15,000 for diplomas and RMB 17,000 for bachelor's degrees[31]. Operational Efficiency and Costs - The gross margin for the six months ended February 28, 2022, was 28.7%, down from 30.5% in the previous year[16]. - The overall utilization rate of the school's capacity improved to 43.5% from 41.0% year-on-year[28]. - Research and development costs increased by RMB 0.5 million (or 23.8%) due to the expansion of new schools and academic center initiatives[46]. - Selling and distribution expenses decreased by RMB 4.1 million (or 68.2%) to RMB 1.9 million, primarily due to reduced advertising costs from previous school openings[47]. - Administrative expenses decreased by RMB 6.5 million (or 12.0%) for the six months ended February 28, 2022[49]. - Other expenses decreased by RMB 44.4 million (or 94.6%), largely due to the absence of impairment losses related to a joint venture in the previous year[50]. Financial Position and Cash Flow - The net cash flow from operating activities was RMB 5,384 thousand, while cash flow from investing activities was RMB (77,480) thousand, and cash flow from financing activities was RMB (433,777) thousand, resulting in a net decrease in cash and cash equivalents of RMB 505,873 thousand[55]. - The company's cash and cash equivalents decreased to RMB 126,101,000 from RMB 631,735,000[104]. - The company’s total liabilities increased, with a net cash outflow from financing activities of RMB 433,777,000[112]. - The company issued new bank loans totaling RMB 197,000,000 during the period, compared to RMB 140,000,000 in the previous year[112]. Risk Management and Compliance - The group faces operational risks including changes in the regulatory environment and competition from other educational institutions[36]. - The board is responsible for managing overall risks and approving significant business decisions related to school expansion and tuition increases[40]. - The company confirmed compliance with structural contracts and believes it has adhered to all significant aspects of these contracts[79]. - The company has not disclosed any specific policies regarding the implementation of new regulations affecting private education institutions in China[81]. Shareholder Information and Corporate Governance - As of February 28, 2022, the major shareholders held approximately 44.79% of the company's shares[83]. - The company has adopted a share option scheme to incentivize qualified individuals, allowing for a maximum of 300,000,000 shares to be issued, representing approximately 9.71% of the issued shares as of the report date[92]. - The board did not recommend the declaration of an interim dividend for the six months ending February 28, 2022, compared to an interim dividend of HKD 0.019 for the same period in 2021[74]. - The company has not established any arrangements for directors to acquire shares or debt securities during the reporting period[85]. Related Party Transactions - The group has various related party transactions, including receivables from Chengdu Experimental Foreign Language School amounting to RMB 340,478,000 as of February 28, 2022[161]. - The group has secured bank borrowings of RMB 253,000,000 with properties located in Chengdu[15]. - The group recorded revenue from related party transactions with Tianren Hotel amounting to RMB 749,000 for the six months ended February 28, 2022, compared to RMB 705,000 in the previous year, reflecting a growth of approximately 6.24%[164].
成实外教育(01565) - 2022 - 中期财报