Financial Performance - The group recorded revenue of RMB 400.6 million for the nine months ended March 31, 2022, a decrease of 20.2% compared to the same period in 2021[9]. - The profit attributable to owners of the company for the nine months ended March 31, 2022, was RMB 2.59 million, down 88.4% from the previous year[9]. - Basic earnings per share for the nine months ended March 31, 2022, were RMB 0.01, compared to RMB 0.12 for the same period in 2021[9]. - The group's operating profit for the nine months ended March 31, 2022, decreased by 62.5% to RMB 17.77 million from RMB 47.40 million in the previous year[10]. - EBITDA for the nine months ended March 31, 2022, was RMB 18.09 million, down 38.0% from RMB 29.20 million in the same period last year[10]. - The group reported a net loss of RMB 22.99 million for the three months ended March 31, 2022, compared to a profit of RMB 1.46 million in the same period of the previous year[10]. - The total comprehensive income for the nine months ended March 31, 2022, was RMB 1.43 million, a decrease of 93.6% from RMB 22.36 million in the previous year[10]. - For the three months ended March 31, 2022, the profit attributable to the owners of the company was RMB 1,435,000, compared to a loss of RMB 23,047,000 in the same period of 2021, representing a significant improvement[11]. - For the nine months ended March 31, 2022, the profit attributable to the owners of the company was RMB 2,589,000, a decrease of 88.4% compared to RMB 22,394,000 in the same period of 2021[11]. - The total comprehensive income attributable to the owners of the company for the three months ended March 31, 2022, was RMB 3,015,000, compared to a loss of RMB 21,867,000 in the same period of 2021[11]. - The total comprehensive income attributable to the owners of the company for the nine months ended March 31, 2022, was RMB 1,406,000, a decrease of 93.5% compared to RMB 21,768,000 in the same period of 2021[11]. - Basic and diluted earnings per share for the three months ended March 31, 2022, were RMB 5.7, compared to RMB 0.01 in the same period of 2021, indicating a substantial recovery[11]. Revenue Breakdown - Revenue for the three months ended March 31, 2022, was RMB 13.88 million, a decrease of 27.4% from RMB 19.12 million in the same quarter last year[37]. - For the nine months ended March 31, 2022, revenue decreased by 20.2% to RMB 40.06 million from RMB 50.19 million in the previous year[37]. - Revenue from educational facility leasing was RMB 12.84 million for the three months ended March 31, 2022, down 28.4% from RMB 17.95 million in the same period last year[21]. - Revenue from supporting facility commercial leasing was RMB 1.03 million for the three months ended March 31, 2022, a decrease of 11.7% from RMB 1.17 million in the same quarter last year[21]. Costs and Expenses - The group's employee costs decreased by 8.1% to RMB 4.58 million for the nine months ended March 31, 2022[10]. - Property tax and land use tax for the third quarter was RMB 2.78 million, down 14.6% from RMB 3.26 million in the same quarter last year[39]. - Maintenance and repair costs in Q3 were RMB 0.06 million, down 76.8% from RMB 0.24 million year-on-year, while total costs for the nine-month period increased by 50.1% to RMB 0.59 million[42]. - Legal and consulting fees in Q3 were RMB 0.41 million, a decrease of 58.2% from RMB 0.97 million in the same quarter last year, but increased by 26.9% to RMB 3.49 million for the nine-month period[43]. - Other net losses in Q3 were RMB 0.24 million, down 79.1% from RMB 1.14 million year-on-year, with a nine-month total loss of RMB 1.35 million, a decrease of 55.7%[44]. - Interest expenses in Q3 were RMB 4.66 million, a decrease of 12.2% from RMB 5.31 million, but increased by 78.8% to RMB 15.10 million for the nine-month period[50]. - Current income tax for Q3 was RMB 0.03 million, down 97.4% from RMB 1.30 million year-on-year, with a nine-month total of RMB 0.11 million, a decrease of 94.2%[51]. Operational Challenges - The decrease in revenue is primarily attributed to reduced leasing space and terms for educational institutions in China due to strategic shifts in response to COVID-19 challenges[37]. - The company faced challenges due to reduced leasing space from educational institutions and commercial tenants, impacting financial performance over the past nine months[56]. - The COVID-19 lockdown in March 2022 led to significant operational disruptions, affecting rental income from educational institutions[58]. Investments and Financing - The company has partially repaid bank loans in Indonesia to reduce borrowing costs, with a repayment of RMB 18.01 million made by March 31, 2022, out of a total purchase price of RMB 32.71 million for an investment property in Mongolia[62]. - The company is expanding financing channels to rebalance its loan portfolio and/or refinance existing bank financing[62]. - The company is undertaking renovations for an investment property in Langfang, estimated to cost approximately RMB 240 million, to be paid according to its fundraising capabilities[62]. Governance and Ownership - The company's total equity attributable to owners as of March 31, 2022, was RMB 1,232,885,000, compared to RMB 1,225,329,000 as of June 30, 2021[13]. - The company's independent auditor has issued a report without any reservations, affirming the integrity of the financial statements[18]. - The audit committee, composed of three independent non-executive directors, reviewed the third-quarter performance and confirmed compliance with applicable accounting standards[82]. - The audit committee is chaired by Mr. Chen, ensuring independent oversight of financial reporting[82]. - The company continues to maintain a strong governance framework with independent directors overseeing key financial matters[82]. - The total number of issued shares as of March 31, 2022, was 180,000,000, providing a basis for calculating ownership percentages[80]. - As of March 31, 2022, no other individuals or entities were reported to hold 5% or more of the shares, indicating a concentrated ownership structure[79]. - The company has not disclosed any significant interests held by directors in important transactions or contracts during the period[81]. - The company is committed to transparency and has made sufficient disclosures regarding its financial performance and governance practices[82]. Future Outlook - The board believes that the Chinese education sector will continue to grow in the long term, benefiting from an increase in student numbers[60]. - The company is monitoring the impact of the COVID-19 zero-COVID policy on its operations and is prepared to increase marketing efforts if the business environment shows signs of recovery[60]. - The company has ongoing construction projects for a new theater and cafeteria, which have been delayed due to recent contracts with educational institutions[59].
东方大学城控股(08067) - 2022 Q3 - 季度财报