Financial Performance - For the six months ended February 29, 2024, the Group's revenue was approximately RMB 640.1 million, representing an increase of approximately 16.8% year-on-year from RMB 548.0 million for the corresponding period last year[22]. - The Group recorded a gross profit of approximately RMB 344.8 million, an increase of approximately 6.8% year-on-year from RMB 322.9 million, with a gross profit margin of 53.9%, down 5.0% year-on-year[24]. - Profit for the period was RMB 219.9 million, a 2.3% increase from RMB 215.1 million, while adjusted net profit rose by 5.6% to RMB 228.7 million from RMB 216.5 million[16]. - The Group recorded a profit before taxation of approximately RMB 240.6 million, representing an increase of approximately 9.6% year-on-year from RMB 219.6 million[41]. - Taxation for the period was approximately RMB 20.7 million, a significant increase of approximately 360.0% from RMB 4.5 million year-on-year[42]. - The adjusted net profit for the six months ended February 29, 2024, was approximately RMB 228.7 million, an increase of about 5.6% from approximately RMB 216.5 million for the same period last year[53]. - Total comprehensive income for the period increased to RMB 219,908,000, up from RMB 215,055,000, representing a growth of 1.3% year-over-year[194]. - Basic and diluted earnings per share for profit attributable to owners of the Company rose to RMB 0.183, compared to RMB 0.179 in the previous period, reflecting a 2.2% increase[194]. Enrollment and Student Statistics - The number of students enrolled was 54,077, a slight decrease of 0.1% from 54,109 in the previous year[16]. - The Group maintained the same number of schools at 3, indicating stability in its operational footprint[16]. - As of February 29, 2024, the total student enrollment across three schools is 54,077, with Huali College having 25,183 students, Huali Vocational College 21,331 students, and Huali Technician College 7,563 students[90]. - Huali College saw a 16.5% increase in enrollment from 21,615 to 25,183 students, with the Jiangmen campus experiencing a significant growth of 116.7%[92]. - Huali Technician College experienced a decline in enrollment by 30.7%, dropping from 10,912 to 7,563 students[92]. - The total enrollment change from February 28, 2023, to February 29, 2024, shows a slight decrease of 0.1%[92]. Revenue Sources and Tuition Fees - Tuition fees accounted for approximately 91.8% of the total revenue for the six months ended February 29, 2024[95]. - Revenue from Huali College tuition fees increased by 23.2% to RMB383.9 million, while Huali Vocational College saw a 14.5% increase to RMB161.1 million[97]. - Huali Technician College experienced a decline in tuition revenue by 25.0%, down to RMB43.0 million[97]. - Boarding fees increased by 35.3% to RMB52.2 million, with Huali College contributing RMB20.1 million[97]. - Average tuition fees increased, contributing to the overall revenue growth for the Group[98]. Expenses and Cost Management - Cost of sales increased by approximately 31.1% year-on-year to RMB 295.3 million from RMB 225.2 million, primarily due to rising staff costs and other operational expenses[23]. - Selling expenses surged by approximately 114.3% to RMB 13.5 million from RMB 6.3 million, attributed to increased marketing expenses for the 2023/2024 academic year[25]. - The operating profit ratio decreased to 44.9%, down 4.0% from the previous year, reflecting the impact of increased costs[16]. - The net profit ratio was 34.4%, a decline of 4.8% compared to the previous year[16]. - Administrative expenses decreased by approximately 10.7% year-on-year to approximately RMB 58.7 million from RMB 65.7 million[32]. - Finance expenses – net decreased by approximately 4.6% year-on-year to approximately RMB 49.8 million from RMB 52.2 million, mainly due to a decrease in interest expenses on bank borrowings[35]. Strategic Initiatives and Future Plans - Future strategies may focus on enhancing student enrollment and optimizing tuition fees to counteract rising costs and improve profitability[22]. - The Group plans to enhance student enrollment by promoting campus construction and improving educational facilities, aiming for sustainable long-term development[113]. - The Group is focusing on an asset-light model by developing diversified non-formal vocational education businesses to expand its second curve of business[113]. - The company aims to cultivate high-quality skilled talents aligned with local economic needs through optimized professional structures[113]. - The Group's recruitment strategy emphasizes hiring experienced teachers with relevant industry backgrounds to improve educational quality[115]. Corporate Governance and Compliance - The Company did not declare any interim dividend for the six months ended February 29, 2024, consistent with the previous period[131]. - The Audit Committee consists of three independent non-executive Directors, responsible for reviewing the completeness and accuracy of the Group's financial information[134]. - The Company complied with all code provisions set out in the Corporate Governance Code, except for the separation of roles between the chairman and CEO[126]. - The Board believes that good corporate governance enhances confidence among shareholders and potential investors[129]. - The Group has maintained effective internal controls and operational efficiency as evaluated by the audit committee[139]. Employee and Operational Metrics - As of February 29, 2024, the Group had 2,765 employees, an increase of 26.3% from 2,189 employees as of February 28, 2023[119]. - The remuneration packages for employees are determined based on individual qualifications, experience, performance, and prevailing market rates[120]. - The Group participates in social insurance plans, including pension, medical, unemployment, work injury, and maternity insurance[120]. Assets and Liabilities - As of February 29, 2024, the Group's property, plant, and equipment amounted to approximately RMB4,771.3 million, representing an increase of approximately 8.1% year-on-year from RMB4,412.0 million as of February 28, 2023[50]. - Total assets decreased to RMB 6,959,028,000 from RMB 7,274,639,000, indicating a decline of approximately 4.3%[199]. - Total equity increased to RMB 3,580,827,000, up from RMB 3,366,207,000, marking an increase of about 6.4%[199]. - Current liabilities decreased to RMB 1,397,364,000 from RMB 1,720,722,000, a reduction of about 18.8%[199]. - Borrowings decreased to RMB 1,885,208,000 from RMB 2,053,735,000, reflecting a decline of approximately 8.2%[199]. - Cash and cash equivalents significantly decreased to RMB 424,321,000 from RMB 985,499,000, a drop of about 56.9%[199].
中国职业教育(01756) - 2024 - 中期财报