Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 144.82 million, a decrease of 8.3% compared to RMB 157.99 million for the same period in 2021[11]. - Gross profit for the same period was RMB 71.85 million, down 11.3% from RMB 80.96 million in 2021, resulting in a gross margin of 49.6%[11]. - The pre-tax profit for the first half of 2022 was RMB 27.12 million, a significant decline of 38.4% from RMB 43.99 million in the same period of 2021[11]. - EBITDA for the six months ended June 30, 2022, was RMB 66.65 million, down 8.3% from RMB 72.69 million in 2021[11]. - Net profit for the period was RMB 27,103 thousand, down 38.7% from RMB 44,156 thousand in the same period last year[174]. - Basic and diluted earnings per share for the period were RMB 2.37, compared to RMB 3.90 for the same period in 2021[174]. - Period profit decreased by approximately 38.6% from RMB 44.2 million to RMB 27.1 million due to the aforementioned factors[75]. Student Enrollment and Retention - The number of total students enrolled as of June 30, 2022, was 30,464, a decrease of 2.7% from 31,316 in 2021[12]. - Full-time students increased by 9.7% to 18,704 from 17,051 in the previous year, while continuing education students decreased by 17.6% to 11,760 from 14,265[12]. - The student retention rate improved to 93.3% from 90.5% in the previous year, indicating better student engagement[12]. - As of June 30, 2022, the total number of students enrolled in the company's schools was 30,464, comprising 18,704 full-time students and 11,760 part-time students, reflecting a decrease of 2.7% from 31,316 students in the previous year[36]. - The full-time student enrollment in vocational education at Shijiazhuang Institute of Technology increased by 10.3% to 16,870, with the number of full-time college students rising by 8.8% to 13,753[36]. - The employment rate for graduates as of June 30, 2022, was approximately 96.6%, an increase of 1.3% from 95.4% in the previous year[50]. Educational Infrastructure and Development - The company operates 13 physical schools, including one private college and various training institutions, enhancing its educational service offerings[6]. - The new campus of Shijiazhuang Institute of Technology is expected to accommodate approximately 30,000 students, with the first batch of 8,000 students anticipated to enroll by September 2023[21][22]. - The company has acquired a total of 279,577.48 square meters of educational land and 46,269.12 square meters of commercial land for the new campus[21]. - The company aims to expand its vocational education services by establishing a new campus for Shijiazhuang Institute of Technology and enhancing the quality of education[62]. - The company is committed to providing targeted practical courses through industry colleges and skill training, improving student employability and institutional brand[27]. Strategic Partnerships and Collaborations - The company has formed strategic partnerships with over 700 domestic and international enterprises, including 32 Fortune 500 companies, enhancing practical training resources[27]. - The collaboration with local governments and enterprises aims to create a talent service business that addresses employment and industry talent shortages[25][26]. - The partnership with the government of Gaoyi County includes acquiring 200 acres of commercial land for building an industrial park, facilitating student internships and training[29]. - The company is actively involved in the "Double High" construction plan for vocational education quality improvement in Hebei Province, approved in the first half of 2021[30]. Financial Position and Assets - Current assets increased slightly from RMB 699.4 million to RMB 699.8 million, with cash and cash equivalents rising from RMB 334.3 million to RMB 427.4 million[76]. - The current ratio improved from 126.4% to 168.7%, primarily due to a decrease in current liabilities[77]. - Total borrowings increased from RMB 446.5 million to RMB 642.1 million, reflecting the company's liquidity management strategy[79]. - The debt-to-asset ratio increased by approximately 3.7 percentage points to 53.8% due to a significant rise in interest-bearing loans[81]. - As of June 30, 2022, total non-current assets amounted to RMB 863,903,000, an increase of 28.06% from RMB 674,657,000 as of December 31, 2021[176]. - The company's net assets increased to RMB 721,922,000, up from RMB 685,787,000, representing a growth of 5.26%[177]. Corporate Governance and Shareholder Information - The board of directors consists of 8 members, including 5 executive directors and 3 independent non-executive directors[92]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests[96]. - The company has adopted the corporate governance code as per the listing rules and has complied with all relevant provisions[96]. - As of June 30, 2022, the total number of shares issued by the company was 1,161,204,000[119]. - Major shareholder Ms. Cao Yang has a spouse interest in 758,712,000 shares, accounting for 65.34% of the equity[120]. Stock Options and Incentive Plans - The company granted stock options totaling 2,220,000 shares to Mr. Li Yurun, with 666,000 shares vesting on December 29, 2021[114]. - The share option plan was approved on May 4, 2018, to incentivize eligible individuals to enhance their contributions to the group[126]. - The maximum number of options that can be granted to any individual within a 12-month period cannot exceed 1% of the company's issued share capital[131]. - The share incentive plan allows for a maximum of 10% of the total issued shares as of the adoption date to be used for purchasing shares[159]. - A total of 16,902,900 shares are pending exercise as of June 30, 2022, with 30% vesting after 12 months, 30% after 24 months, and 40% after 36 months from the grant date[162].
21世纪教育(01598) - 2022 - 中期财报