China New Higher Education Group Limited
China New Higher Education Group Core Revenue increased by 101.4% to RMB 501 mn Net profit increased by 50.5% to RMB 226 mn Completion of consolidation of Henan School, Northeast School, Guangxi Schools and Central China School
For immediate release 26 August 2019 Core Revenue increased by 101.4% to RMB 501 mn Financial Overview Core revenue amounted to RMB501.0 million, up 101.4% yoy Gross Profit amounted to RMB268.6 million, up 92.0% yoy EBITDA amounted to RMB341.8 million, up 58.5% yoy Net profit amounted to RMB225.7 million, up 50.5% yoy Net profit attributable to the parent amounted to 201 million, up 34.0% yoy Proposed interim dividend of RMB0.036 per share, up 33.3% yoy. Operation Overview “Since our listing in 2017, we seized the opportunity to acquire 5 schools at very affordable costs based on our internal investment screening criteria, which has enabled us to build an extensive presence across 7 provinces in China and allowed the newly acquired schools under our management to achieve substantial improvements.” Founder and Chairman of the Board Mr. Li Xiaoxuan said. “Meanwhile, we place great importance to the strengthening our post-investment management standards. The construction speed of our Gansu College is the fastest among the education space in the province. From 2015-2018, our total student enrollment grew at a CAGR of 50%. The current student enrollment has exceeded 100,000 students. Looking forward, the policy for the development of private education will be more specific and there will be a larger room for the growth of the sector as well. We will capitalize on these opportunities and continue to improve ourselves in hope of creating stable returns for our shareholders.” Financial Analysis Gross profit increased by 92.0% to RMB269 million. The increase is attributable to the increase in student enrollment of the schools owned by the Group and the impacts of the newly invested schools (Henan School, Northeast School and Guangxi Schools). The gross profit margin decreased to 53.6% from 56.2%, primarily due to new completions of acquisitions of Henan School and Guangxi Schools, whose gross profit margin are relatively lower than other existing schools of the Group. Net profit increased 50.5% to RMB226 million, net profit attributable to the parent amounted to 201 million, up 34.0% yoy. Cash and Cash equivalents Capital Expenditures Business Review Future Prospect Due to the large gap between the income and quality of the newly invested schools The Group will continue to maintain the rapid growth of our flagship universities and leverage our advantages in school operation to close the distance between the schools acquired and our flagship universities, in order to realize fast-paced growth. Investment Strategy In recent years, the Group has seized the opportunity to acquire 5 schools at affordable costs according to the internal investment screening criteria. Building an extensive presence across 7 provinces in China, it is a Hong Kong-listed education company with the largest provincial presence and broadest regional coverage. Meanwhile, we attach great importance to the post-investment management standards. The speed of construction of our Gansu College is the fastest among the Gansu education space. Thanks to the right investment strategy we have adopted and the scientific post-investment management, the Group has been able to achieve rapid growth. From 2015-2018, the total student enrollment grew at a CAGR of more than 50%. The current student enrollment has exceeded 100,000 students (including Gansu College). -End- About China New Higher Education Group Limited The Group provides high quality higher education in a wide selection of fields in applied sciences. Its courses are designed to equip students with practical and readily applicable skills, helping to prepare them for job market. It achieved industry-leading graduate employment rates, with over 98% of its graduates from 2013 to 2015 by the end of their year of graduation, according to Frost & Sullivan. 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, and has been included as a constituent stock of the MSCI China Small Cap Index in November 2017 and included as a constituent stock of Shenzhen and Hong Kong Stock Connect in March 2018. The press release is distributed by Wonderful Sky Financial Group Limited on behalf of China New Higher Education Group Limited. For further information, please contact: Document: http://n.eqs.com/c/fncls.ssp?u=MANDIBSJQS Document title: China New Higher Education Group Core Revenue increased by 101.4% to RMB 501 mn Net profit increased by 50.5% to RMB 226 mn Completion of consolidation of Henan School, Northeast School, Guangxi Schools and Central China School
27/08/2019 Dissemination of a Marketing Press Release, transmitted by EQS Group. |