Number of Students for 2017/2018 School Year Surges 81.9%
Stable Revenue and Net Profit Growth
Interim Dividend Amounts to RMB0.027 Per Share
Financial and Business Highlights
Interim results for the six months ended 30 June 2018:
nTotal revenue amounted to RMB326.4 million, up 22.9% over the same period of 2017
nOther income and gains amounted to RMB77.6 million, up 45.9% over the same period of 2017
nNet profit for the period amounted to RMB150.0 million, up 36.1% over the same period of 2017
nTotal number of students enrolled for the 2017/2018 academic year was 84,497, up 81.9% over the 2016/2017 academic year
(31 August 2018, Hong Kong) China New Higher Education Group Limited (“New Higher Education Group”, together with its subsidiaries, the “Group”; stock code: 2001.HK) is pleased to announce the consolidated interim results for the six months ended 30 June 2018 (the “Review Period”).
During the Review Period, due to higher student enrollments in Yunnan School and Guizhou School and increased freshmen tuition fee rates of selected degrees in Guizhou School in 2017, the tuition fee revenues increased by 16.9% from RMB196.9 million for the six months ended 30 June 2017 to RMB230.1 million for the six months ended 30 June 2018, while the Group’s revenue increased by 17.0% from RMB212.6 million for the six months ended 30 June 2017 to RMB248.8 million for the six months ended 30 June 2018. Other income and gains amounted to RMB77.6 million, representing an increase of 45.9% over the same period of 2017. The net profit for the period was RMB150.0 million, an increase of 36.1% as compared with RMB110.2 million for the same period of 2017. Adjusted net profit was RMB92.8 million and adjusted net profit margin was 37.3%. The Group has decided to pay an interim dividend again of RMB0.027 per share in sum of RMB38.64 million.
The total number of students enrolled for the 2017/2018 academic year was 84,497, up 81.9% over the 2016/2017 academic year. During the six months ended 30 June 2018, the Group operated and invested in six higher education institutions in the PRC, including Yunnan School and Guizhou School founded by the Group, and Northeast School, Central China School, Xinjiang School and Henan School invested by the Group. These schools have all contributed to the total revenue of the Group. In addition, the Group has become a joint school sponsor of Gansu College in July 2018. The Group is a leading private higher education group in the PRC in terms of employment rate in 2017 according to the CIC Report.
As a private higher education provider focusing on applied sciences, the Group strives to provide high quality higher education in a wide selection of fields in applied sciences. The course offerings are designed to equip students with practical experience and readily applicable skills and prepare them for the job market. Meanwhile, the Group will adjust its course offerings from time to time to meet changing market demand. As a result, New Higher Education Group outperformed industry peers in terms of industry- leading graduate employment rates. Each of the Group’s schools has gained wide recognition in the region where it is located and continues to attract students and quality teachers.
Looking ahead, New Higher Education Group will expand its school network and increase its market penetration and its market share in the private higher education sector in the PRC. The Group intends to expand into western and central China and will firstly focus on undergraduate colleges and then junior colleges with potential to upgrade as undergraduate colleges. Following the completion of acquisitions or investments, the Group plans to leverage on its replicable business model to optimize the operations of the acquired or invested schools and rapidly replicate the value-added service revenue model of Yunnan School to increase financial returns and education quality. In addition, the Group retains the right to cooperate with public schools in running an independent college. By leveraging on the brand awareness and education resources of public schools, the Group may promote its reputation in the new area, thereby facilitating its local business development.
New Higher Education Group intends to further optimize the sources of revenue and other income by increasing tuition fees, boarding fees and examination training fees. With respect to the talents strategic plan, the Group will further improve the team building system with an emphasis on pushing ahead with the work in relation to recruitment and training of the teams of management cadres, teachers and students management. The Group has planned and commenced the implementation of projects relating to the introduction of high-end innovative talents and talents specializing in new subjects that are in shortage with a view to facilitating the nurture and development of young talents and enhancing the quality of our talent pool. The Group intends to continue to attract, incentivize and retain quality teachers and build a first-rate management team of the Group and faculty teams of schools. To this end, New Higher Education Group adopted the share option incentive scheme in 2018, covering the top management to core members in general level. The Group attaches great effort in continuously attracting high-level academic leaders in order to maintain its core competitiveness.
Mr. Li Xiaoxuan, chairman of New Higher Education Group, said: “the Group will further adhere to its belief ‘to nurture the growth of our students’, thereby further ‘Promoting Education Development in China Innovatively’. For the growth of our students and to achieve our dream of ‘become a respected first-class education group’, the Group has made persistent efforts and united to move forward. By putting every effort on major tasks and continuously striving for improvements, the Group has gained enhancement and achievements in its implementation of key tasks. All our effort will be devoted to our major plans in order to open up a new chapter for the Group and generate more values and returns to the society and shareholders.”
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About China New Higher Education Group Limited:
China New Higher Education Group is a leading private higher education group in the PRC with nearly 20 years of experience in the education sector, dedicated to providing higher education focusing on applied sciences. The group endeavors to help each student maximize his or her potential and live his or her life to the fullest. The group’s fundamental educational philosophy is mainly composed of two integral parts: (i) to nurture the growth of our students, and provide tailor-made education to each student’s individual needs and circumstances; and (ii) to equip our students with practical and readily applicable skills that meet market demand. During the six months ended 30 June 2018, the group operated and invested in six higher education institutions in the PRC, including Yunnan School and Guizhou School founded by the group, and Northeast School, Central China School, Xinjiang School and Henan School invested by the group. Further, the group has become a joint school sponsor of Gansu College in July 2018, which marks the completion of its strategic expansion into 7 provinces across China. It is a leading private higher education group in the PRC in terms of employment rate in 2017 according to the CIC Report.
The group provides high quality higher education in a wide selection of fields in applied sciences to equip students with practical experience and readily applicable skills and prepare them for the job market. In addition, in terms of the number of students enrolled for the past three academic years, the group is one of the fastest-growing higher education group focusing on applied sciences. The total number of students enrolled increased to 84,497 in the 2017/2018 academic year from 46,460 in the 2016/2017 academic year. The Group has been included as a constituent stock of the Hang Seng Composite Small Cap Index and the Hang Seng Consumer Goods & Services Index in the Hang Seng Composite Index Series in August 2017, has been included as a constituent stock of the MSCI China Small Cap Index in November 2017, and has been included as a constituent of certain indexes of Hang Seng Stock Connect Hong Kong in March 2018.
