Financial Performance - Revenue for the six months ended February 28, 2023, was RMB 789,750,000, representing a 12.3% increase from RMB 703,327,000 in the same period of 2022[9]. - Gross profit for the same period was RMB 488,788,000, up 7.0% from RMB 456,787,000 year-on-year[9]. - Adjusted EBITDA for the six months was RMB 582,271,000, reflecting a 13.2% increase compared to RMB 514,203,000 in the previous year[9]. - Profit for the period was RMB 424,216,000, which is an 11.4% increase from RMB 380,913,000 in the same period last year[9]. - Core net profit for the period was RMB 438,351,000, up 13.1% from RMB 387,639,000 year-on-year[9]. - Total revenue increased by RMB 86.4 million or 12.3% to RMB 789.7 million for the six months ended February 28, 2023, compared to RMB 703.3 million for the same period in 2022[22]. - Tuition revenue rose by RMB 83.0 million or 12.8% to RMB 732.3 million, driven by an increase in student enrollment and average tuition fees[30]. - Gross profit increased by RMB 32.0 million or 7.0% to RMB 488.8 million, with a gross margin of 61.9%, down from 64.9% year-on-year[31]. - The company achieved a profit before tax of RMB 433,425,000, up 9.1% from RMB 397,400,000 in the previous year[77]. - Net profit for the period was RMB 424,216,000, compared to RMB 380,913,000 in the prior year, reflecting an increase of 11.4%[78]. Student Enrollment and Education Quality - The number of enrolled students increased to approximately 126,500, a rise of 5.5% from 119,900 in the prior year[11]. - The number of students in higher education courses increased by 7.7% to 59,600, while the number in vocational education decreased by 5.2% to 10,900[23]. - The group facilitated over 200,000 job openings from more than 5,000 companies, achieving an average employment rate of over 93% across its institutions in 2022[16]. - The group established 349 new off-campus practical teaching bases in 2022, an increase of 80% year-on-year[18]. - New programs added include "Artificial Intelligence," "New Energy Vehicle Application and Maintenance," and "Digital Media Art," aligning with national strategic emerging industries[18]. - The company is focused on providing quality vocational education to meet the growing market demand[1]. - The company collaborates with research institutions and enterprises to enhance students' practical skills and market competitiveness[1]. Operational Developments - A new campus in Huai Bei has been completed, accommodating up to 10,000 students, and 52 new experimental training rooms have been established[15]. - The school utilization rate improved to 79.9% as of February 28, 2023, compared to 76.5% in 2022[25]. - The group has expanded its total export bandwidth to over 4.5G, enhancing digital resources for students and teachers[15]. - The group introduced over 600 high-quality teachers in 2022, significantly increasing the number of teachers with intermediate and above titles[14]. - The group received 12 national awards and 102 provincial awards in 2022, with teachers publishing 522 academic papers, including 53 in core journals[14]. Financial Position and Investments - Cash and cash equivalents as of February 28, 2023, amounted to RMB 1,120.5 million, with interest-bearing bank and other borrowings totaling RMB 2,097.5 million[45]. - The debt-to-equity ratio decreased from approximately 56.4% as of August 31, 2022, to 51.5% as of February 28, 2023, due to a reduction in total interest-bearing bank and other borrowings[46]. - Capital expenditure for the six months ended February 28, 2023, was RMB 147.8 million, primarily for maintenance and upgrading of existing facilities and acquisition of new educational equipment[44]. - The company has invested in three high-end apartment buildings to provide transitional housing for new teachers, accommodating up to 1,000 beds[14]. - The company reported a total of RMB 78,861,000 in other income and gains, an increase from RMB 56,307,000 in the previous year[98]. Shareholder and Governance Matters - The company did not recommend any interim dividend for the six months ended February 28, 2023, maintaining the previous year's dividend of HKD 0.06 per share[54]. - The company repurchased a total of 1,000,000 shares at a total cost of HKD 1,854,000 (approximately RMB 1,652,000) during the six months ended February 28, 2023[57]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[55]. - The audit committee reviewed the unaudited interim consolidated results for the six months ended February 28, 2023, and confirmed compliance with relevant accounting standards[55]. - The company has a robust internal control system and risk management framework in place, as confirmed by the audit committee[55]. Taxation and Regulatory Compliance - The company is subject to a 15% corporate income tax rate for its subsidiary in Tibet, benefiting from tax incentives[108]. - The company’s non-school subsidiaries in mainland China are required to pay corporate income tax at a rate of 25% on their taxable income[109]. - The company is undergoing restructuring to comply with local regulations regarding the classification of private schools, which may significantly impact its profitability and tax liabilities in the future[106]. - The company is continuously reviewing and assessing potential tax liabilities related to its restructuring process, with no significant adverse impact expected on its business or financial condition[106]. Future Outlook and Strategic Initiatives - The company plans to focus on high-quality development strategies to meet the growing demand for vocational education talent in advanced manufacturing and modern service industries[28]. - The company aims to enhance international cooperation in vocational education and improve educational quality through resource sharing[30]. - The company is exploring potential acquisitions of smaller educational institutions to enhance its service offerings and market share[135]. - The company expects a revenue growth of 12% for the next fiscal year, driven by increased enrollment and new program offerings[135]. - The company has implemented a new marketing strategy aimed at increasing brand awareness and attracting international students[135].
中国科培(01890) - 2023 - 中期财报