Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 192,102,000, representing a 32.6% increase from RMB 144,822,000 in 2022[8]. - Gross profit for the same period was RMB 76,194,000, with a gross margin of 39.7%, down from 49.6% in 2022, indicating a decrease of 9.9 percentage points[8]. - EBITDA for the first half of 2023 was RMB 91,414,000, up 37.2% from RMB 66,650,000 in 2022[8]. - Profit for the period increased by approximately 23.1% from RMB 27.1 million for the six months ended June 30, 2022, to RMB 33.4 million for the six months ended June 30, 2023[59]. - Profit before tax increased to RMB 33,003,000, up 21.5% from RMB 27,122,000 in the previous year[116]. - The basic and diluted earnings per share for the period were RMB 2.94, compared to RMB 2.37 in 2022, reflecting a growth of 24%[116]. - The company reported a total comprehensive income of RMB 39,608,000 for the period, compared to RMB 36,924,000 in 2022, an increase of 7.3%[116]. Student and Teacher Metrics - Total number of full-time students increased to 23,423, a rise of 25.2% from 18,704 in 2022[9]. - The total number of full-time teachers rose to 792, reflecting a 32.4% increase from 598 in the previous year[9]. - The student retention rate improved to 98.7%, an increase of 5.8% from 93.3% in 2022[9]. - The average revenue per student in vocational education increased to RMB 4,763, up by RMB 243 or 5.4% year-over-year[17]. - The employment rate for graduates as of June 30, 2023, was approximately 96.7%, a slight increase of 0.1% from the previous year[19]. - The high school education segment served 2,361 students, achieving a university admission rate of approximately 98% and an art examination pass rate of 94.7%[31]. - The enrollment in the New Horizon Kindergarten reached a record high of 1,895 students for the 2022-2023 academic year, marking a continuous growth over four years[35]. Educational Services and Programs - The company continues to focus on personalized education services and solutions to enhance student capabilities[10]. - The company has established 22 programs in collaboration with 14 enterprises, with 20 order classes and 15 pilot apprenticeship programs in place as of June 30, 2023[25]. - The company has formed partnerships with over 700 enterprises, including more than 60 Fortune 500 companies, to support talent development in emerging industries[26]. - The company aims to deepen the integration of industry and education through internal development and external acquisitions[3]. - The company aims to establish approximately 150 industry-education integration entities by 2025, enhancing collaboration between vocational schools and enterprises[43]. Financial Position and Assets - Current assets increased from approximately RMB 503.3 million as of December 31, 2022, to approximately RMB 612.8 million as of June 30, 2023, mainly due to increases in prepayments, deposits, and other receivables[60]. - Current liabilities increased from approximately RMB 559.6 million as of December 31, 2022, to approximately RMB 654.3 million as of June 30, 2023, primarily due to increased short-term borrowings and a decrease in contract liabilities[60]. - The current ratio improved from 89.9% as of December 31, 2022, to 93.7% as of June 30, 2023, due to a greater increase in current assets compared to current liabilities[62]. - The debt-to-asset ratio increased from approximately 62.9% as of December 31, 2022, to approximately 65.1% as of June 30, 2023, due to an increase in interest-bearing loans and other borrowings[63]. - Non-current assets as of June 30, 2023, totaled RMB 1,559,777,000, an increase from RMB 1,452,178,000 as of December 31, 2022[119]. - Total liabilities as of June 30, 2023, were RMB 1,414,265,000, compared to RMB 1,229,601,000 at the end of 2022, reflecting an increase of 15%[119]. Governance and Management - The company has adopted the corporate governance code as per the listing rules and has complied with most of its recommended best practices[78]. - The management team includes key positions such as Chief Executive Officer, Chief Financial Officer, and Executive Vice Presidents overseeing various operational areas[75]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[78]. - There were changes in the board, with Mr. Li Yusheng resigning as executive director and Mr. Li Yasheng being appointed as chairman[76]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2023[81]. Shareholder Information - As of June 30, 2023, Mr. Li Yurun holds 754,590,000 shares, representing 64.98% of the company's equity[85]. - As of June 30, 2023, the total number of issued shares is 1,161,204,000[89]. - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[80]. - The company has a stock option plan with a maximum limit of 10% of the issued shares, equating to 120,000,000 shares, as of the reporting date[94]. - The company aims to attract and retain talented individuals through its stock option plan, which incentivizes contributions to the group's performance and success[93]. Cash Flow and Investments - The cash flow from operating activities showed a net outflow of RMB 1,715 thousand for the six months ended June 30, 2023, compared to a net outflow of RMB 4,989 thousand in the same period last year, indicating an improvement in cash flow management[128]. - The net cash flow from investing activities was RMB (226,363,000), significantly higher than RMB (81,132,000) in the previous year, indicating increased capital expenditures[130]. - The net cash flow from financing activities was RMB 169,674,000, slightly down from RMB 169,920,000 in the same period last year[130]. - The company has implemented a share buyback program, repurchasing shares worth RMB 2,344 thousand during the reporting period[125]. Market and Competitive Position - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge in the education sector[126]. - The company is actively exploring investment and acquisition opportunities in the vocational education sector to enhance growth potential[50]. - The company is responding to national policies by establishing a diversified educational industry structure centered on new vocational education development[47].
21世纪教育(01598) - 2023 - 中期财报