Financial Performance - Revenue for the six months ended February 29, 2024, was RMB 871.97 million, an increase of 10.4% from RMB 789.75 million for the same period in 2023[7] - Gross profit for the same period was RMB 529.85 million, reflecting an 8.4% increase from RMB 488.79 million in the previous year[7] - The adjusted EBITDA for the six months was RMB 617.99 million, up 6.0% from RMB 582.81 million in the prior year[7] - The net profit for the period was RMB 452.49 million, representing a 6.7% increase compared to RMB 424.22 million in the previous year[7] - Total revenue increased by RMB 82.2 million or 10.4% to RMB 872.0 million for the six months ended February 29, 2024, compared to RMB 789.8 million for the same period in 2023[22] - Gross profit increased by RMB 41.1 million or 8.4% to RMB 529.9 million, with a gross margin of 60.8%, slightly down from 61.9% in the previous year[31] - Profit before tax increased to RMB 480,787,000, up from RMB 433,425,000, representing an increase of 10.9% year-over-year[80] - Net profit for the period was RMB 452,488,000, compared to RMB 424,216,000 in the previous year, marking a growth of 6.6%[80] - Core profit increased by RMB 22.4 million or 5.1% to RMB 461.3 million for the six months ended February 29, 2024[41] - Total comprehensive income for the same period was RMB 477,580,000, up from RMB 432,241,000, reflecting a growth of 10.5%[82] Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.07 per share, amounting to approximately 30% of the profit attributable to owners[9] - The company declared an interim dividend of HKD 0.07 per ordinary share, totaling RMB 127,942,000, compared to no dividend declared for the same period in 2023[119] - As of February 29, 2024, the total number of issued shares is 2,015,248,667[68] - Ye Liya Limited holds 677,280,000 shares, representing 33.61% of the company[73] - Shu Feiya Limited has a stake of 375,000,000 shares, accounting for 18.61%[73] - Ye Kasi Limited owns 300,000,000 shares, which is 14.89% of the total shares[73] - The total percentage of shares held by the top three shareholders is 66.11%[73] Student Enrollment and Educational Quality - The number of enrolled students reached approximately 120,000 for the 2023/24 academic year, with new enrollment in undergraduate programs increasing by 22% and total student numbers growing by 10%[24] - Over 300 high-quality teachers were recruited for the 2023/24 academic year, enhancing the quality of the teaching staff significantly[11] - The establishment of a teaching supervision office aims to improve teaching quality through detailed inspections of teaching plans and classroom performance[11] - Four courses were recognized as provincial-level first-class undergraduate courses, with one course participating in the national selection for first-class courses[11] - The group achieved significant faculty development, winning 31 national awards and 76 provincial awards in the 2023/24 academic year[12] - A total of 68 provincial research projects were undertaken, with teachers publishing 843 academic papers, a 30% increase in awards compared to last year[12] - The group established 70 new experimental training rooms, including AI and industrial robot labs, to meet modern vocational education needs[13] - Over 4,000 companies offered more than 150,000 job positions, resulting in an employment rate of over 90% for graduates in a challenging job market[15] Operational Strategies and Market Position - The company aims to maintain its market position in China's private vocational education sector, focusing on engineering and other balanced disciplines[2] - The group actively expanded international education services, establishing long-term partnerships with overseas institutions for various educational programs[27] - The group plans to enhance cooperation with leading enterprises in key industries such as new energy vehicles and artificial intelligence to align educational offerings with industry needs[25] - The group added new majors such as Artificial Intelligence and Smart Manufacturing Engineering, aligning with national strategic emerging industries[17] - The establishment of an Innovation and Entrepreneurship College supports over 50 entrepreneurial teams, fostering student innovation[15] Financial Position and Cash Flow - As of February 29, 2024, the company had cash and cash equivalents of RMB 868.1 million and interest-bearing bank and other borrowings of RMB 1,024.2 million[46] - The company's debt-to-equity ratio decreased from approximately 39.9% as of August 31, 2023, to 21.0% as of February 29, 2024, primarily due to a reduction in interest-bearing bank and other borrowings[51] - Operating cash flow for the six months ended February 29, 2024, was RMB 690,969,000, up from RMB 535,727,000 in the same period last year, representing a growth of approximately 29%[91] - Cash and cash equivalents at the end of the period totaled RMB 868,111,000, down from RMB 1,120,458,000 at the end of the previous period[92] Expenses and Cost Management - Sales costs increased by RMB 41.1 million or 13.7% to RMB 342.1 million, primarily due to investments in high-quality education and student training programs[29] - Administrative expenses increased by RMB 6.5 million or 7.9% to RMB 88.8 million for the six months ended February 29, 2024, mainly due to an increase in the number of management professionals[34] - Financing costs decreased by RMB 16.8 million or 37.3% to RMB 28.2 million for the six months ended February 29, 2024, due to a reduction in interest-bearing bank and other borrowings[38] - The group reported a total tax expense of RMB 28,299,000 for the six months ended February 29, 2024, compared to RMB 9,209,000 for the same period in 2023, representing an increase of 208%[118] Future Outlook and Strategic Initiatives - The company plans to continue its business expansion and has assessed sufficient financial resources to meet its operational needs and obligations[95] - The company has set a revenue guidance of RMB 2.5 billion for the fiscal year ending August 2024, reflecting a growth target of 12%[146] - The company is considering potential acquisitions of smaller educational institutions to diversify its offerings[146] - The board of directors approved a share buyback program worth RMB 200 million to enhance shareholder value[146]
中国科培(01890) - 2024 - 中期财报