Financial Data and Key Metrics Changes - In the first half of 2022, the company's revenue from continuing operations increased by 20.9% to RMB 211.4 million, net income rose to RMB 42.7 million, and adjusted net income increased by 282.1% to RMB 42.7 million compared to the same period in 2021 [7][37][38] - Gross profit was RMB 90.0 million, an increase of 32.6% from RMB 67.9 million in the first half of 2021, with a gross margin of 42.5%, up from 38.8% [34][37] Business Line Data and Key Metrics Changes - The company admitted 7,963 students for the class of 2022, reflecting a 9.6% increase from 7,268 students in the previous year [9] - Revenue from government cooperative agreements surged by 318.9% to RMB 31.2 million, driven by more consistent government grants [32] Market Data and Key Metrics Changes - Tuition collection was approximately 92% completed, indicating strong cash flow from student payments [21] - The company opened three new schools in September 2022, expanding its operational footprint [24][25] Company Strategy and Development Direction - The company aims to further reduce leverage to maintain a safer financial position amid global recession concerns while ensuring growth [20] - There is a strategic focus on expanding into vocational education, with plans to sign a long-term management service contract for a vocational school in Kunming [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth due to increased student enrollments and expanded service offerings [8][11] - The company expects total revenue for the fiscal year 2022 to be between RMB 440 million to RMB 460 million, representing a year-over-year increase of 10% to 15% [38] Other Important Information - General and administrative expenses decreased by 36.6% to RMB 35.7 million, attributed to improved cost control and the elimination of nonrecurring IPO-related expenses [16][36] - The company has no current plans to go private, emphasizing its commitment to remaining a public entity and rewarding investors [46][48] Q&A Session Summary Question: Is there any plan to go private? - The company has no plans to go private, aiming to reward investors and improve its valuation [46][48] Question: When will dividends be paid to shareholders? - Dividends are planned to be paid within the next two to three weeks, pending regulatory approvals [51]
First High-School Education(FHSEY) - 2022 Q2 - Earnings Call Transcript