Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 517,419 thousand, representing a 17% increase from RMB 441,055 thousand in the same period of 2023[11]. - Gross profit increased to RMB 347,238 thousand, up 18% from RMB 294,801 thousand year-over-year[11]. - Operating profit before tax rose by 25% to RMB 341,204 thousand compared to RMB 272,989 thousand in the previous year[11]. - The company reported a net profit of RMB 340,998 thousand, reflecting a 25% increase from RMB 272,163 thousand year-over-year[11]. - Profit before tax increased to RMB 341,204,000, a rise of 25.0% from RMB 272,989,000 in the previous year[77]. - Net profit for the period was RMB 340,998,000, compared to RMB 272,163,000 in the prior year, reflecting a growth of 25.3%[77]. - Core net profit for the six months ended June 30, 2024, was RMB 343.725 million, up from RMB 274.194 million in 2023, representing a growth of approximately 25.4%[41]. - The profit attributable to the owners of the company increased by approximately 26% to RMB 267.5 million[40]. - Basic and diluted earnings per share for the period were RMB 16.71, up from RMB 13.22 in the same period last year[78]. Assets and Liabilities - Net current assets increased by 21% to RMB 1,705,075 thousand from RMB 1,404,155 thousand[12]. - Total equity grew by 10% to RMB 3,745,630 thousand from RMB 3,403,095 thousand[12]. - Current liabilities decreased significantly by 74% to RMB 189,875 thousand from RMB 729,945 thousand[12]. - Total liabilities decreased significantly, with current liabilities dropping to RMB 189,875,000 from RMB 729,945,000, a reduction of approximately 74%[80]. - The net assets of the company increased to RMB 3,745,630,000 from RMB 3,403,095,000, marking an increase of around 10.1%[81]. - Cash and cash equivalents decreased by RMB 271.1 million to RMB 1,724.8 million as of June 30, 2024, primarily due to net cash outflow from operating activities of approximately RMB 143.8 million[44]. - The company had no bank loans or other borrowings as of June 30, 2024, resulting in a debt-to-asset ratio of 0%[45]. Educational Operations - The company operates the largest private higher education institution in Zhejiang Province and is a leading institution in Henan Province, focusing on both higher and secondary education services[16]. - Longzheng College has a recruitment plan for 2023 that ranks first in the private college recruitment plan in Zhejiang Province[16]. - Longzheng College offers 38 full-time vocational programs across 11 categories, including finance, education, and healthcare[16]. - The college has established 10 on-campus training bases and 169 experimental training rooms, with several recognized as provincial and national demonstration training bases[18]. - The company collaborates with 375 industry associations and enterprises to enhance student training and employment opportunities[18]. - Longzheng College is a pilot unit for the "Chinese Characteristic Apprenticeship System" and has developed 27 vocational skill standards for small and micro enterprises[18]. - The college has been recognized for its high-level professional groups, including the "Cross-Border E-Commerce Professional Group" and several provincial-level advantageous and characteristic programs[17]. - Zhengzhou Economic and Trade College ranked fifth in Henan Province for private undergraduate enrollment plans in 2023, with a total of 35,722 students as of June 30, 2024, up from 32,677 in 2023, representing a growth of approximately 6.3%[24]. - The college has established partnerships with over 200 enterprises to create high-quality off-campus internship bases, enhancing practical training opportunities for students[20]. Financial Management and Investments - The company plans to acquire or invest in underutilized higher education institutions in Central, Eastern, and Southern China[28]. - The financing cost for the period was RMB 13,000, compared to RMB 4,000 in the previous period[36]. - The company has created multiple technical service platforms, including the Zhejiang Small and Micro Enterprise Credit Research Center and the Zhejiang Small and Micro Enterprise Risk Prevention Consultation and Service Center[18]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[60]. - The company plans to allocate 50% of the IPO proceeds (approximately RMB 231 million) for acquiring other schools to expand its school network by December 31, 2025[60]. - 40% of the IPO proceeds (approximately RMB 184 million) will be used for expanding the business, including establishing new campuses for the Economic and Trade Academy and the Long March Academy by December 31, 2025[60]. Regulatory and Compliance - The implementation of the 2021 Regulations on the Promotion of Private Education in China allows private schools to enjoy tax benefits similar to public schools, particularly for non-profit institutions[53]. - For profit-making private schools, at least 10% of audited annual net income must be allocated to a development fund for the school's development[53]. - The company operates private higher education and high school education businesses in China through structured contracts due to legal restrictions on foreign investment in the private education sector[54]. - The company has not faced any regulatory intervention regarding the adoption of structured contracts to consolidate the financial performance of its subsidiaries[54]. - The company has implemented specific measures to comply with qualification requirements for establishing Sino-foreign joint schools, although detailed guidelines are not yet published[55]. Employee and Management Information - Employee benefits expenses for the six months ended June 30, 2024, totaled approximately RMB 135.8 million, reflecting the company's commitment to maintaining good employee relations[50]. - Approximately 98.8% of teachers at Zhengzhou Economic and Trade College hold a bachelor's degree or higher, with about 73.1% possessing a master's degree or above, ensuring high teaching quality[22]. - The company reported a significant increase in management compensation, totaling RMB 12,442,000 for the six months ended June 30, 2024, compared to RMB 6,984,000 for the same period in 2023, marking an increase of about 78.5%[117]. Miscellaneous - The company has no significant contingent liabilities or major lawsuits as of June 30, 2024[47]. - There were no major investments or asset acquisitions or disposals during the reporting period[51]. - The company has no foreign exchange hedging policies in place but continues to monitor foreign exchange risks[48]. - No significant events occurred after June 30, 2024, that would materially impact the company's operations and financial performance[52].
嘉宏教育(01935) - 2024 - 中期财报