Student Enrollment and Education Services - The total number of full-time students in the group’s schools for the 2021/2022 academic year was 25,797[17] - The average tuition fees for Lingnan Vocational Technical College and Lingnan Modern Technician College were RMB 16,429 and RMB 10,838, respectively[17] - The average boarding fees for the two colleges were RMB 1,641 and RMB 1,586, respectively[17] - The group operates two schools in the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on vocational education and training[11] - The company emphasizes the positive policy environment for vocational education, highlighting government support for the sector[18] - The group aims to enhance its educational offerings by integrating industry and education, promoting school-enterprise cooperation[18] - The company plans to develop high-level vocational colleges and programs to meet the growing demand for skilled talent[18] - The group is positioned to benefit from the implementation of the Private Education Promotion Law, which encourages investment in vocational education[18] - The company is committed to expanding its educational services, including continuing education and vocational skills certification training[15] - The company is committed to developing vocational education in the Guangdong-Hong Kong-Macao Greater Bay Area, which contributed 11.0% of China's nominal GDP in 2021 despite accounting for less than 1% of the country's land area[26] Financial Performance - The company's revenue decreased by approximately 7.5% from about RMB 286.0 million for the six months ended June 30, 2021, to about RMB 264.5 million for the six months ended June 30, 2022, primarily due to a reduction in full-time student enrollment at Lingnan Vocational Technical College[34] - Gross profit decreased by approximately 13.1% from about RMB 141.4 million for the six months ended June 30, 2021, to about RMB 122.9 million for the reporting period, with the gross profit margin declining from approximately 49.4% to about 46.4%[36] - Other income and gains decreased by approximately 45.4% from about RMB 54.4 million for the six months ended June 30, 2021, to about RMB 29.7 million for the six months ended June 30, 2022, primarily due to a reduction in rental income and gains from property sales[37] - Profit for the period decreased by approximately 26.8% from RMB 1,265 million for the six months ended June 30, 2021, to RMB 927 million for the six months ended June 30, 2022[45] - Adjusted net profit decreased by approximately RMB 416 million or 31.0% compared to the same period last year, with an adjusted net profit margin declining from approximately 47.0% to 35.0%[46] - Revenue for the six months ended June 30, 2022, was RMB 264,548,000, a decrease of 7.5% compared to RMB 286,045,000 for the same period in 2021[110] - Gross profit for the same period was RMB 122,857,000, down 13.1% from RMB 141,421,000 in 2021[110] - Net profit for the period was RMB 92,663,000, down 26.8% compared to RMB 126,530,000 in 2021[110] Expenses and Costs - The cost of sales decreased by approximately 2.0% from about RMB 144.6 million for the six months ended June 30, 2021, to about RMB 141.7 million for the six months ended June 30, 2022, mainly due to a reduction in employee costs[35] - Sales and distribution expenses increased by approximately 2.4% from RMB 84 million for the six months ended June 30, 2021, to RMB 86 million for the six months ended June 30, 2022, primarily due to increased recruitment costs at Lingnan Modern Vocational Technical College[40] - Administrative expenses decreased by approximately 11.3% from RMB 389 million for the six months ended June 30, 2021, to RMB 345 million for the six months ended June 30, 2022, mainly due to a reduction in listing expenses by RMB 78 million[41] - Other expenses decreased by approximately 21.2% from RMB 104 million for the six months ended June 30, 2021, to RMB 82 million for the six months ended June 30, 2022, primarily due to reduced rental income costs from terminated leases[42] - Financing costs decreased by approximately 20.2% from RMB 94 million for the six months ended June 30, 2021, to RMB 75 million for the six months ended June 30, 2022, due to the repayment of certain borrowings[44] Assets and Liabilities - As of June 30, 2022, the net current assets were approximately RMB 1,740 million, a decrease of about 16.1% from RMB 2,075 million as of December 31, 2021[49] - Interest-bearing bank and other borrowings amounted to approximately RMB 2,435 million as of June 30, 2022, with effective interest rates ranging from approximately 5.2% to 6.8%[50] - The leverage ratio decreased from approximately 18.4% as of December 31, 2021, to approximately 16.4% as of June 30, 2022, primarily due to a reduction in interest-bearing borrowings[58] - Cash and cash equivalents were RMB 282,492,000, down from RMB 482,393,000 at the end of 2021[114] - Current liabilities decreased to RMB 293,441,000 from RMB 423,777,000 in the previous year[116] Shareholder Information - As of June 30, 2022, the company had issued a total of 1,334,000,000 shares, with major shareholders holding significant stakes, including Mr. He Huishan with 620,000,000 shares (46.48%) and Ms. He Huifen with 190,000,000 shares (14.24%)[63] - Zhihui Guang Limited, owned by Mr. He Huishan and Ms. Zhou Lanqing, holds 570,000,000 shares, representing 42.73% of the company[71] - The group maintained a total of 1,334,000,000 ordinary shares issued and fully paid as of June 30, 2022, unchanged from December 31, 2021[171] Governance and Compliance - The company has complied with all provisions of the corporate governance code during the reporting period[94] - The board confirmed that there were no conflicts of interest or competitive businesses related to the company's operations during the reporting period[106] - The company has taken measures to monitor regulatory changes related to compliance risks associated with the 2016 Decision and 2021 Implementation Regulations[107] Future Plans and Investments - The company plans to expand its campus network through mergers and acquisitions, focusing on high-quality vocational schools and non-academic training institutions in the Guangdong-Hong Kong-Macao Greater Bay Area[30] - The company aims to enhance its performance growth through four strategies, including internal growth in academic vocational education, external mergers and acquisitions, expansion of auxiliary education services, and international cooperation[27][30][31][32] - The company plans to upgrade Lingnan Vocational and Technical College to a bachelor's level vocational university, with expected completion between 2022 and 2023[88] - The company has extended the timeline for acquiring other schools and education service providers to expand its school network from 2022 to 2023 due to the need for more time to find suitable acquisition targets[90] Government Grants and Income - The company received government grants totaling RMB 2,270,000 during the reporting period, compared to RMB 1,649,000 in the same period of 2021[125] - Government grants related to assets were RMB 2,730,000, an increase from RMB 2,530,000 in the previous year[141] - Government grants related to income were RMB 2,126,000, down from RMB 2,474,000 in 2021[141] Acquisitions - In March 2022, the company entered into an agreement to acquire 80% of Qingyuan Lingnan Youjia Automotive Training Co., Ltd. for a total consideration of RMB 3,600,000[93] - The identifiable net assets of Lingnan Automobile Training at the acquisition date amounted to RMB 685,000, with cash and cash equivalents of RMB 1,500,000[174] - Since the acquisition, Lingnan Automobile Training has contributed a loss of RMB 96,000 to the group's consolidated profit for the six months ended June 30, 2022[177]
华南职业教育(06913) - 2022 - 中期财报