Immediate Release 31 August 2017
(Stock Code: 2001.HK)
Strong Growth in 2017 Interim Results of China New Higher Education
Comprehensive Income Increased by 34.4% Substantially
Core Net Profit Increased by 52.3% Sharply
Interim Dividend per Share was RMB0.021
|Financial and Operating Highlights
Interim results for the six months ended 30 June 2017:
|Comprehensive income amounted to RMB265.7 million, representing an increase of 34.4% as compared to the same period of 2016
|Profit from continuing operations of RMB110.2 million, representing an increase of 38.1% as compared to the same period of 2016
Gross profit margin and net profit margin were 57.1% and 51.9% respectively
Core net profit (excluding the listing expense) amounted to RMB127.8 million, representing an increase of 52.3% as compared to the same period of 2016
The number of students enrolled was 46,460 (including 33,462 students from two universities operated by the Group and 12,998 students from two universities invested by the Group), representing a significant increase of 56.3% as compared to the same period of 2016
(31 August 2017, Hong Kong) China New Higher Education Group Limited ("China New Higher Education", together with its subsidiaries, "the Group", stock code: 2001.HK) is pleased to announce the unaudited consolidated interim results for the six months ended 30 June 2017 ("the Review Period").
During the Review Period, due to the adjustment of tuition fee of the Yunnan School, and the significant increase in the number of students enrolled in the Yunnan School and the Guizhou School, the revenue of the Group amounted to RMB265.7 million, representing an increase of 34.4% as compared to the same period of 2016. The Group recorded profit from operations of RMB110.2million, representing an increase of 38.1% as compared to the same period of 2016. Gross profit margin increased from 56.3% for the same period of the previous year to 57.1% for the current period. Core net profit (excluding the listing expense) amounted to RMB127.8 million, representing an increase of 52.3% as compared to the same period of 2016. The Group recorded other income and gains amounting to RMB53.2 million, representing a remarkable increase of 174.2% as compared to 2016.
As of 30 June 2017, the total number of students enrolled of the Group was 46,460, representing a significant increase of 56.3% as compared to the same period of 2016. Currently, the Group is in possession of four universities, including the Yunnan Technology and Business University, the Guizhou Technology and Business Institute, the Harbin Huade University and Science and Technology College of Hubei University. The Northwest Technology and Business Institute, which is under construction in Lanzhou, Gansu, is expected to commence operation in 2019 and to have its first batch of college students enrolled in September the same year, with an enrollment capacity of 15,000 college students. In addition, the Yunnan school and Guizhou School are expected to be expanded in the future by utilizing substantial areas of reserved land. The Yunnan school has approved to expand the size of school students to 44,000 during the 13th Five-Year Plan by the Provincial Education Department, representing a significant increase of 125% as compared to the end of 2016, which will exert positive influence on the future increase in the number of students of the Group.
The Group has always been maintaining the tuition rates at competitive levels, in which the tuition fee has a bigger growing room, with better brand power and reputation, in 2017/2018 academic year, the tuition fee of Guizhou School, Northeast school and Huazhong School, has been adjusted to a higher level.
The Group intends to further optimize revenue and other income sources. Beneficial to the recognition and support from the educational head department, affiliated schools of the Group were approved to expand school scale, in which the number of students would have a significant ground for providing a guarantee to the expansion in other revenue sources.
Looking forward, the Group will expand the school network and increase the market penetration rate, as well as increase the market share in the private education industry in China. The Group will intend to expand into western and central China, as the focus merger and acquisition. There exists significant growth potential because the higher education enrollment rates in these regions are lower than the national average enrollment rates, and leverage its scalable business model to optimize the operations of the acquired or invested schools and replicate the value-added service revenue model of the Yunnan School to increase financial returns.
Mr. Li Xiaoxuan, the Chairman of China New Higher Education, said, "With the continuous development of China's economy and the increasing demands for talents with practical experience and applicable skills, there exists substantial market potential for the development of domestic private higher education. In the future, we will adhere to the education aim of "Help Student to Succeed" and continue to push ahead the long-term development of the Group by exercising management and control over strategy, budget and operation and adopting a humanistic, informational and systematic management method so as to replicate and promote its scalable business model. It will also strive to establish itself into a leading university focused on applied sciences and develop the most respected education group corporation, so as to enhance the Group's comprehensive strength and increase market share in the industry, creating greater value and satisfactory returns for the shareholders."
About China New Higher Education Group Limited
China New Higher Education is a leading private formal higher education group in China with nearly 20 years of education industry experience, specializing in providing higher education which focuses 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 students, and provide education tailored to each student's individual needs and circumstances; and (ii) to equip students with practical and readily applicable skills that meet market demand. The Group currently operates and invests in four schools, namely the Yunnan Technology and Business University, the Guizhou Technology and Business Institute, the Science and Technology College of Hubei Minzu University and the Harbin Huade University in Southwestern, Central and Northeastern China, and the construction of Northwest School will commence in the second half of 2017.
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. Furthermore, the Group is one of the fast-growing higher education groups focusing on applied sciences in China in terms of the number of students enrolled at the end of the past three school years, with its overall student enrolment growing from 29,716 in 2015/2016 academic year to 46,460 in 2016/2017 academic year, including total 33,462 students in Yunnan, and Guizhou school which the Group operated and total 12,998 students in Central China and Northeast school which the Group invested.
The press release is distributed by Wonderful Sky Financial Group Limited on behalf of China New Higher Education Group Limited.
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