Financial Performance - Total revenue for the six months ended February 29, 2024, was approximately RMB 170.8 million, an increase of 12.3% compared to RMB 152.1 million for the same period in 2023[10] - Gross profit decreased to RMB 64.9 million, down 11.7% from RMB 73.5 million, resulting in a gross margin decline from 48.3% to 38.0%[17] - Net profit for the period was approximately RMB 28.6 million, a decrease of 30.4% from RMB 41.1 million in the previous year[10] - Tuition revenue rose to RMB 159.0 million, an increase of 13.8% from RMB 139.7 million, while accommodation revenue decreased by 5.6% to RMB 11.8 million[13] - Total comprehensive income for the period was RMB 33,032,000, down from RMB 44,409,000 in the same period last year[99] - The company reported a net profit of RMB 28,568,000 for the six months ended February 29, 2024, a decrease of 30.5% from RMB 41,067,000 in the prior year[96] Enrollment and Student Metrics - The number of full-time students increased to 11,941, representing an 8.3% growth compared to the previous academic year[10] - The total number of enrollments grew from 11,023 in the previous academic year to 11,955 in the current academic year[13] - As of February 29, 2024, the school has 11,941 full-time undergraduate students, an increase of 17.4% from 2021/2022 academic year when there were 9,891 students[40] - The school achieved a 92.78% enrollment rate for the 2023 admissions, an increase of 2.83 percentage points compared to 2022[46] - The employment rate for the 2023 graduates is 85.94%, which is above the provincial average[46] Expenses and Costs - Total sales costs increased by 34.7% to RMB 105.9 million, primarily due to higher employee costs and increased maintenance expenses[15] - Sales expenses increased by RMB 0.7 million for the six months ending February 29, 2024, compared to the previous period, primarily due to higher promotional costs for offline recruitment activities[19] - Administrative expenses decreased by RMB 4.8 million or 19.8% to RMB 19.4 million for the six months ending February 29, 2024, mainly due to a reduction in consulting fees and other professional service costs[20] - The company incurred additional costs for campus construction and maintenance, as well as student activities and teacher training, impacting gross profit margins[17] - Employee benefits expenses, excluding director remuneration, rose to RMB 47,146,000, compared to RMB 38,359,000, marking a 22.5% increase[125] Financing and Liabilities - Financing costs rose from RMB 6.7 million to RMB 19.6 million for the six months ending February 29, 2024, with total interest expenses increasing from approximately RMB 26.8 million to approximately RMB 33.5 million[22] - Total bank and other borrowings and accrued interest amounted to approximately RMB 1,133.9 million as of February 29, 2024, compared to RMB 926.8 million as of August 31, 2023[29] - The financial leverage ratio was approximately 1.2 as of February 29, 2024, an increase of 0.2 from August 31, 2023[30] - The company recorded a net current liability of RMB 354,328,000, with contract liabilities of RMB 126,416,000 expected to be settled through educational services rather than cash[114] - The company has a potential tax liability of 25% on its formal education service income if it does not enjoy any preferential tax treatment after becoming a for-profit private school[131] Assets and Cash Flow - As of February 29, 2024, the group's property, plant, and equipment amounted to approximately RMB 1,787.4 million, an increase of RMB 10.8 million from RMB 1,776.6 million as of August 31, 2023[25] - The group had cash and cash equivalents of approximately RMB 334.7 million as of February 29, 2024, up from RMB 270.8 million as of August 31, 2023[29] - The company experienced a net cash outflow from investing activities of RMB 34,874,000, down from RMB 89,648,000 in the prior year, reflecting reduced capital expenditures[110] - Financing activities generated a net cash inflow of RMB 169,458,000, a substantial increase from RMB 33,534,000 in the previous period, primarily due to new bank loans[110] - The total cash and cash equivalents at the end of the period increased to RMB 334,697,000, up from RMB 200,801,000, showing improved liquidity[110] Strategic Initiatives and Future Plans - The company plans to develop a digital education lifelong learning system, creating a "Future Learning Center" akin to a digital education platform[57] - The company aims to integrate its advantageous programs with the Belt and Road Initiative, actively developing international student education[57] - The school has established four industry colleges, enhancing collaboration with enterprises and improving practical training opportunities[45] - The company aims to expand its educational services and establish vocational education institutions in the Yangtze River Delta and Beijing-Tianjin-Hebei regions[54] - The transition of Heilongjiang University of Commerce to a for-profit institution has received significant progress, with the application approved by the Ministry of Education[56] Shareholder and Corporate Governance - Major shareholders include Junhua Education Limited with 29.5% ownership (196,674,000 shares) and Shuren Education Limited with 45.0% ownership (300,000,000 shares)[68] - The group did not declare any interim dividend for the six months ended February 29, 2024, compared to an interim dividend of HKD 0.105 per share for the same period in 2023[133] - The company has not issued or granted any share options or convertible securities during the six months ended February 29, 2024[76] - The total number of shares available for grant under the share option scheme as of February 29, 2024, is 66,666,700 shares[88] - The weighted average number of ordinary shares in issue for calculating basic earnings per share remained at 666,667,000 shares for both periods[134]
立德教育(01449) - 2024 - 中期财报