Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,953 million, a 4.0% increase from RMB 1,879 million in the previous year[2]. - Net profit decreased by 15.9% to RMB 204 million from RMB 242 million year-on-year[2]. - Adjusted net profit was RMB 176 million, down 2.7% from RMB 181 million in the same period last year[2]. - The company reported a basic earnings per share of RMB 9.36, down from RMB 11.14 in the previous year[5]. - The diluted earnings per share for the same period was reported at 9.19 RMB, adjusted from 9.11 RMB, reflecting similar deferred tax adjustments[19]. - The company reported a pre-tax profit of RMB 274,963 thousand for the six months ended June 30, 2023, compared to RMB 325,950 thousand for the same period in 2022, indicating a decrease of approximately 15.6%[26][28]. - The net profit for the period was RMB 203,835 thousand, down from RMB 242,274 thousand in the previous year, reflecting a decline of about 15.8%[26][28]. - The company reported a significant increase in other income and expenses, amounting to approximately RMB 68 million for the six months ended June 30, 2023, compared to RMB 52 million for the same period in 2022[69]. - Other income and losses recorded a net income of approximately RMB 57 million for the six months ended June 30, 2023, compared to RMB 62 million for the same period in 2022, primarily due to a foreign exchange gain of approximately RMB 44 million[70]. Enrollment and Training Participants - New training participants and new customer registrations increased to 84,552, representing a growth of 20.0% compared to 70,445 in the same period last year[2]. - The total number of new training participants for culinary skills increased by 23.1% to 47,734 in the six months ending June 30, 2023, compared to 38,774 in the same period of 2022[50]. - The number of long-term culinary course participants rose by 26.1% to 33,463, up from 26,532 year-on-year[50]. - New registrations for short-term culinary courses increased by 37.7% to 19,139, compared to 13,895 in the previous year[50]. - The company reported a 59.7% increase in short-term IT course participants, reaching 2,583, up from 1,617 in the same period last year[50]. - The long-term courses in the automotive service segment saw a 21.7% increase in new training participants, totaling 20,457 compared to 16,812 in the previous year[51]. - The fashion beauty segment, specifically Omandi, experienced a significant growth of 76.8% in new training participants, reaching 1,526 from 863[51]. - The average training participants in the automotive service segment increased by 20.2% to 38,827, up from 32,315 in the previous year[54]. Financial Position and Assets - Total assets decreased by 2.2% to RMB 9,281 million from RMB 9,489 million at the end of 2022[2]. - Cash and cash equivalents decreased to RMB 1,185 million from RMB 1,435 million, reflecting a decline of 17.4%[6]. - The company's total equity decreased to RMB 5,522 million, down 3.0% from RMB 5,692 million at the end of 2022[8]. - Trade receivables as of June 30, 2023, were RMB 61,876,000, an increase of 32.7% from RMB 46,625,000 as of December 31, 2022[38]. - The company reported a total of RMB 382,379,000 in other receivables as of June 30, 2023, compared to RMB 284,470,000 as of December 31, 2022, indicating a significant increase of 34.4%[38]. - Property and equipment increased by 9.1% from approximately RMB 2,615 million as of December 31, 2022, to approximately RMB 2,854 million as of June 30, 2023[77]. - Right-of-use assets decreased by 2.4% from approximately RMB 2,425 million as of December 31, 2022, to approximately RMB 2,367 million as of June 30, 2023[78]. - The company held other financial assets amounting to approximately RMB 585 million as of June 30, 2023[79]. Expenses and Costs - The total administrative expenses for the period were RMB 52,541 thousand, a decrease from RMB 47,721 thousand in the previous year[26][28]. - Interest expenses related to lease liabilities were RMB 71,570 thousand for the six months ended June 30, 2023, down from RMB 82,406 thousand in the same period of 2022[33]. - The income tax expense for the period was RMB 71,128 thousand, compared to RMB 83,676 thousand in the previous year, indicating a reduction of approximately 15.1%[34]. - Total employee costs for the first half of 2023 amounted to RMB 716,922,000, representing an increase of 8.7% from RMB 659,218,000 in the first half of 2022[35]. - The total depreciation expense for the first half of 2023 was RMB 318,341,000, a decrease of 3.2% from RMB 329,160,000 in the same period of 2022[35]. - Sales expenses increased from RMB 443 million for the six months ended June 30, 2022, to RMB 513 million for the same period in 2023, attributed to enhanced advertising resources for brand promotion[71]. - Administrative expenses rose from RMB 246 million for the six months ended June 30, 2022, to RMB 256 million for the same period in 2023, maintaining a stable ratio of 13.1% of revenue[72]. - Financial costs decreased to RMB 72 million for the six months ended June 30, 2023, from RMB 82 million for the same period in 2022[73]. Dividends and Shareholder Information - The company declared a final dividend of HKD 0.2 per share for the year ended December 31, 2022, totaling approximately HKD 428,300,000 (approximately RMB 394,892,000)[36]. - The company has not declared an interim dividend for the six months ended June 30, 2023, compared to no interim dividend declared for the same period in 2022[36]. - The company’s final dividend of HKD 0.2 per share for the year ending December 31, 2022, was approved by shareholders on May 25, 2023[94]. Strategic Initiatives and Future Plans - The company aims to bridge the gap between employers and students in vocational education, addressing the unmet demand in various sectors[47]. - The company plans to continue expanding its market presence and enhancing its service offerings to drive future growth[61]. - The group plans to establish regional centers across China to enhance teaching and training facilities for its seven school/center brands, with the first phase in Chengdu and Jinan already operational[86][87]. - The group aims to diversify its course offerings in response to industry trends, focusing on sectors such as artificial intelligence and healthcare[88]. - The company has a scalable business model and standardized management methods to accelerate the launch of new courses[90]. Governance and Compliance - The company’s audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the six months ending June 30, 2023[97]. - The company has adopted the Corporate Governance Code and has complied with all its provisions during the reporting period[95].
中国东方教育(00667) - 2023 - 中期业绩