HANGZHOU, China, March 9, 2021 /PRNewswire/ -- Hailiang Education
Group Inc. (Nasdaq: HLG)
("Hailiang Education", the "Company" or "we"), an education
and management service provider of primary, middle, and high
schools in China, announced its
financial results for the second quarter and first half of fiscal
year 2021 ended December 31, 2020.
"We are very pleased to see that the Company's business has
shown strong resilience during the COVID-19 pandemic. With the
stabilization of the COVID-19 pandemic in China, the Company's business has gradually
returned to normal and achieved encouraging results for the
reporting periods. In the first half of fiscal year 2021, we
recorded revenue of RMB937.0 million
(US$143.6 million), an increase of
25.0% from RMB749.4 million for the
same period of last year. The net profit attributable to the
Company's shareholders was RMB268.0
million (US$41.1 million), an
increase of 31.3% from RMB204.1
million for the same period of last year," said
Dr. Junwei Chen, the Chairman and Chief Executive Officer of
Hailiang Education. "As we improve
the quality of our primary, middle and high school
educational services and ancillary educational services,
we are confident that, as one of the market leader, we will gain
more market share and drive long-term profit growth for
shareholders in the future."
"Benefiting from the effective control of COVID-19 and the
gradual recovery of economy in China, as well as the flexible measures
adopted by the Company and the application of more educational
technology products, the Company's growth momentum in the first
half of fiscal 2021 was remarkable. Our revenue increased by 25.0%
compared to the same period of last year. In the first half of
fiscal year 2021, the gross margin was 38.6%, an increase of 6.5
percentage points compared to the same period of last year. The
increase in gross margin was mainly due to the continued increase
in average tuition and student enrollments, a decrease in the
proportion of revenue generated from low margin business such as
study trip services, and the deferral in recognition of tuition
earned in fiscal year 2020 to fiscal year 2021 due to the impact of
COVID-19," said
Ms. Deborah Lee, the Chief Financial Officer of Hailiang
Education. "In the future, we
believe that the Company's gross margin will remain at a relatively
stable level with further improvement of school utilization rate,
the opening of new schools, and the Company's continuous investment
in educational technology applications."
Dr. Chen continued, "Looking forward, Hailiang Education will
continue to adhere to four strategic paths. First, we will drive
endogenous growth through the rapid improvement of school
utilization rate and the steady rise in tuition with the help of
the Company's brand that has been gradually established and
expanded in East China and across the country. Second, we will
continue our efforts to seek suitable acquisition opportunities in
China and overseas countries to
achieve external expansion. Third, we will focus on the development
of ancillary educational services, especially educational
training business as a new direction to drive our growth.
Last, we will continue to vigorously promote the two strategic
projects announced earlier this fiscal year -- "The Project of
Invigorating Education with Talents" and "The Project of
Revitalizing Education through Technology, to solve the two
bottlenecks of "talents supply" and "Resource Replication" during
the rapid, high-quality and standardized remote expansion of
schools."
Dr. Chen concluded, "We are very excited about Hailiang
Education's development opportunities in the near future along with
the gradual economy recovery and stable COVID-19 control in
China, although the impact of
COVID-19 is still ongoing and recovery of the global economy
remains uncertain. We are confident that our abundant talent
pool and innovative education technology applications will
facilitate Hailiang Education's rapid expansion in China and overseas countries with our
promotion of the two strategic projects of 'Invigorating Education
with Talents' and 'Revitalizing Education through Technology'. At
the same time, we also see opportunities for educational training
of 'online merging offline integration'. We expect educational
training to become a new revenue source by utilizing the Company's
nationwide school network. We expect that the Company's healthy
debt-to-asset ratio and sufficient cash flow will support the
implementation of these growth strategies for long-term growth and
success."
Second Quarter of Fiscal Year 2021 Financial and Operational
Highlights
|
For the Quarter
Ended December 31,
|
(RMB
millions, except per share data)
|
2020
|
|
2019
|
|
%
Change
|
Revenue
|
638.5
|
|
519.5
|
|
22.9%
|
Primary, middle and
high school educational
services
|
561.5
|
|
445.5
|
|
26.0%
|
Basic educational
program
|
385.2
|
|
292.1
|
|
31.9%
|
International
program
|
176.3
|
|
153.4
|
|
14.9%
|
Educational training
services
|
39.6
|
|
34.4
|
|
15.1%
|
Study trip
services
|
9.3
|
|
21.9
|
|
-57.5%
|
Education and
management services
|
21.2
|
|
11.2
|
|
89.3%
|
Others
|
6.9
|
|
6.5
|
|
6.2%
|
Gross
Profit
|
316.9
|
|
244.0
|
|
29.9%
|
Gross
Margin
|
49.6%
|
|
47.0%
|
|
2.6pp*
|
Operating
Profit
|
298.2
|
|
253.8
|
|
17.5%
|
Operating
Margin
|
46.7%
|
|
48.8%
|
|
-2.1pp*
|
Net
Profit
|
245.6
|
|
219.2
|
|
12.0%
|
Net Profit
Attributable to the Company's Shareholders
|
241.1
|
|
219.4
|
|
9.9%
|
Earnings Per
Share
|
0.58
|
|
0.53
|
|
9.9%
|
*Notes: pp represents percentage points
- Revenue was RMB638.5 million
(US$97.9 million), an increase of
22.9% from RMB519.5 million for the
same period of last year.
- Gross profit was RMB316.9 million
(US$48.6 million), an increase of
29.9% from RMB244.0 million for the
same period of last year.
- Gross margin was 49.6%, compared with 47.0% for the same period
of last year.
- Net profit attributable to the Company's shareholders was
RMB241.1 million (US$37.0 million), an increase of 9.9% from net
profit attributable to the Company's shareholders of RMB219.4 million for the same period of last
year.
- Basic and diluted earnings per share were RMB0.58 (US$0.09),
compared with basic and diluted earnings per share of RMB0.53 for the same period of last year.
- As of early February 2020, the
senior high school students in the Company's international program
had received more than 300 formal and conditional offers from
universities. About 60% of the students in the Victoria Certificate
of Education ("VCE") class formally accepted to the top 50
universities in the world, and about 75% of the students in the
General Certificate of Education Advanced Level ("A-Level") class
had been conditionally accepted to the top 100 universities in the
world, such as University College London and University of
Manchester.
- In the second quarter of fiscal year 2021, we launched some
educational technology systems as pioneering achievements of our
"The Project of Revitalizing Education through Technology". Star
Teacher Training platform, a platform that provides growth
training courses for our teachers, Hailiang Cloud Exercise
system, an electronic homework and precise teaching system, and
Home-School Co-education platform, a home-school
communication service platform. The Company will continue to
promote the use of educational technology in its school
network.
First Half of Fiscal Year 2021 Financial and Operational
Highlights
|
For the Six Months
Ended December 31,
|
(RMB
millions, except per share data)
|
2020
|
|
2019
|
|
%
Change
|
Revenue
|
937.0
|
|
749.4
|
|
25.0%
|
Primary, middle and
high school educational
services
|
824.6
|
|
638.8
|
|
29.1%
|
Basic educational
program
|
564.6
|
|
426.1
|
|
32.5%
|
International
program
|
260.0
|
|
212.7
|
|
22.2%
|
Educational training
services
|
59.4
|
|
43.4
|
|
36.9%
|
Study trip
services
|
11.1
|
|
43.1
|
|
-74.2%
|
Education and
management services
|
33.1
|
|
15.7
|
|
110.8%
|
Others
|
8.8
|
|
8.4
|
|
4.8%
|
Gross
Profit
|
361.4
|
|
240.6
|
|
50.2%
|
Gross
Margin
|
38.6%
|
|
32.1%
|
|
6.5pp*
|
Operating
Profit
|
336.8
|
|
243.0
|
|
38.6%
|
Operating
Margin
|
35.9%
|
|
32.4%
|
|
3.5pp*
|
Net
Profit
|
270.9
|
|
199.8
|
|
35.6%
|
Net Profit
Attributable to the Company's Shareholders
|
268.0
|
|
204.1
|
|
31.3%
|
Earnings Per
Share
|
0.65
|
|
0.49
|
|
31.3%
|
*Notes: pp represents percentage points
- Revenue was RMB937.0 million
(US$143.6 million), an increase of
25.0% from RMB749.4 million for the
same period of last year.
- Gross profit was RMB361.4 million
(US$55.4 million), an increase of
50.2% from RMB240.6 million for the
same period of last year.
- Gross margin was 38.6%, compared with 32.1% for the same period
of last year.
- Net profit attributable to the Company's shareholders was
RMB268.0 million (US$41.1 million), an increase of 31.3% from net
profit attributable to the Company's shareholders of RMB204.1 million for the same period of last
year.
- Basic and diluted earnings per share were RMB0.65 (US$0.10),
compared with basic and diluted earnings per share of RMB0.49 for the same period of last year.
- As of December 31, 2020, we had
41 schools in our school network, 13 of which being affiliated
schools that we owned or sponsored, and 28 of which being managed
schools that we provided education and management services to. The
aggregate number of students enrolled in both affiliated and
managed schools were 72,893. The number of students enrolled in our
affiliated schools was 26,936, an increase of 14.0% compared to the
same period of last year. The number of students enrolled in the
basic educational programs of our affiliated schools was 21,636, an
increase of 15.4% compared to the same period of last year. The
number of students enrolled in the international programs of our
affiliated schools was 5,300, an increase of 8.7% compared to the
same period of last year.
- The Company has obtained the operating license for "Xianghu
Future School (Xianghu Public
School)" in Xiaoshan District, Hangzhou, and expects to start operating the
school in the fall of 2021 with enrollment capacity of
approximately 1,152 students. The current progress of Ninghai Public School (tentative name) has been
in line with expectations, and it is expected to start operating in
the fall of 2021 with enrollment capacity of approximately 4,500
students. The Company expects to start operating Pingyin Binhu New
District Nine-Year School (tentative name), a managed school in the
fall of 2022."
- In the first half of fiscal year 2021, the educational training
business served a total of 54,055 student attendances, including
28,424 student attendances taking our online educational training
services and 25,631 student attendances taking our onsite
educational training services. In addition to the existing four
training centers in Zhejiang
Province, the Company expects that at least five new
training centers will be opened during fiscal years 2021 and
2022.
- In the first half of fiscal year 2021, our students won more
than 100 provincial and national level academic, arts and sports
competition awards. For example, our students won four gold medals
and one bronze medal in the 2020 Chinese Mathematical Olympiad
(national level), and one silver medal in the 2020 37th National
Middle School Physics Competition Finals (national level).
Second Quarter and First Half of Fiscal Year 2021 Financial
Results
Revenue
Revenue increased by 22.9% to RMB638.5
million (US$97.9 million) for
the second quarter of fiscal year 2021, from RMB519.5
million for the same period of last year. Revenue increased by
25.0% to RMB937.0 million (US$143.6 million) for the first half of fiscal
year 2021, from RMB749.4 million for the same period of
last year.
Revenue from primary, middle and high school educational
services increased by 29.1%, to RMB824.6 million (US$126.4
million) for the first half of fiscal year 2021, from
RMB638.8 million for the same period
of last year. The increase was due to the expansion in the scale of
the Company's network, an increase in the number of students and an
increase in the annualized average tuition charged compared to the
same period of last year. Besides, as the 2019/2020 school year
extended from June 2020 to
July 2020 due to the impact of
COVID-19, the deferred revenue as of June
30, 2020 was recognized as revenue in July, amounting to
RMB36.4 million (US$5.6 million), which also contributed to the
increase in revenue for the first half of fiscal year 2021.
Revenue from educational training services increased by 36.9%,
to RMB59.4 million (US$9.1 million) for the first half of fiscal year
2021, from RMB43.4 million for the same period of last
year. This was mainly due to the great expansion of online
educational training business.
Revenue from study trip services decreased by 74.2%, to
RMB11.1 million (US$1.7 million) for the first half of fiscal year
2021, from RMB43.1 million for the same period of last
year. This was mainly due to the travel restrictions because of
COVID-19 which affected study trip services for the first half of
fiscal year 2021.
Revenue from education and management services increased by
110.8%, to RMB33.1 million
(US$5.1 million) for the first half
of fiscal year 2021, from RMB15.7 million for the same
period of last year. This was mainly due to two new managed schools
in Suqian City and expanding our service scope to part of our
managed schools.
Other revenue mainly represented revenue derived from overseas
study consulting services and hotel management services. Other
revenue was RMB8.8 million
(US$1.3 million) for the first half
of fiscal year 2021, compared with RMB8.4
million for the same period of last year.
Cost of Revenue
Cost of revenue increased by 16.7%, to RMB321.6
million (US$49.3 million) for
the second quarter of fiscal year 2021, from RMB275.5
million for the same period of last year. Cost of revenue
increased by 13.1%, to RMB575.6 million (US$88.2 million) for the first half of fiscal
year 2021, from RMB508.8 million for the same period of
last year. The increase was primarily due to increased compensation
levels of employees and an increase in the number of employees,
partially offset by a decrease in costs related to study trip
services resulting from the outbreak of COVID-19.
Gross Profit and Gross Margin
Gross profit increased by 29.9% to RMB316.9 million
(US$48.6 million) for the second
quarter of fiscal year 2021, from RMB244.0 million for
the same period of last year. Gross profit increased by 50.2%
to RMB361.4 million (US$55.4
million) for the first half of fiscal year 2021,
from RMB240.6 million for the same period of last
year.
Gross margin was 49.6% for the second quarter of fiscal year
2021, compared with 47.0% for the same period of last year. Gross
profit margin was 38.6% for the first half of fiscal year 2021,
compared with 32.1% for the same period of last year.
Other Income, net
Other income decreased by 70.6%, to RMB10.2
million (US$1.6 million) for the
second quarter of fiscal year 2021, from RMB34.6
million for the same period of last year. Other income
decreased by 43.0%, to RMB28.4 million (US$4.4 million) for the first half of fiscal year
2021, from RMB49.8 million for the same period of last
year. The decrease was primarily due to a decrease in government
grants of subsidies we received from local government.
Operating Expenses
Operating expenses increased by 16.2%, to RMB28.9 million
(US$4.4 million) for the second
quarter of fiscal year 2021, from RMB24.9 million for the
same period of last year. Operating expenses increased by 11.8%,
to RMB53.0 million (US$8.1
million) for the first half of fiscal year 2021,
from RMB47.4 million for the same period of last
year.
Selling expenses increased by 13.5%, to RMB10.9
million (US$1.7 million) for the
second quarter of fiscal year 2021, from RMB9.6
million for the same period of last year. Selling expenses
increased by 30.0%, to RMB20.3 million (US$3.1 million) for the first half of fiscal year
2021, from RMB15.6 million for the same period of last
year. This increase was primarily due to the rapid expansion of the
educational training business, thus, student enrollment rewards
related to educational training business increased compared to the
same period of last year.
Administrative expenses increased by 17.9%, to RMB17.9
million (US$2.7 million) for the
second quarter of fiscal year 2021, from RMB15.2
million for the same period of last year. This increase was
primarily due to increase in labor cost and number of our office
and administrative staffs.
Administrative expenses increased slightly by 2.9%,
to RMB32.7 million (US$5.0
million) for the first half of fiscal year
2021, from RMB31.8 million for the same period of
last year. This increase was primarily due to the increase in labor
cost and number of our office and administrative staffs, and
partially offset by the reduction in administrative expenses
resulting from the liquidation of Jiangxi Haibo Education
Management Co., Ltd in the second quarter of fiscal year 2020.
Finance Income and Finance Costs
Finance income increased by 84.9% to RMB10.7 million
(US$1.6 million) for the second
quarter of fiscal year 2021, from RMB5.8 million for the
same period of last year. Finance income increased by 31.9%
to RMB18.3 million (US$2.8
million) for the first half of fiscal year 2021,
from RMB13.9 million for the same period of last year.
This increase was primarily due to an increase in the interest
income derived from term deposits held at a related party finance
entity.
Finance costs was RMB0.39 million (US$0.06 million) for the second quarter of fiscal
year 2021, compared with RMB0.22 million for the same
period of last year.
Finance costs decreased by 82.9%, to RMB0.7 million
(US$0.1 million) for the first half
of fiscal year 2021, from RMB3.9 million for the same
period of last year. This decrease was primarily due to the
lump-sum payment of 18-year lease liabilities regarding the lease
of campuses in Zhuji City in September
2019, which resulted in the reduction of lease liabilities
and the corresponding reduction in interest expenses.
Income Tax Expense
Income tax expense was RMB63.0
million (US$9.7 million) for
the second quarter of fiscal year 2021, compared with RMB40.1 million for the same period of last year.
Income tax expense was RMB83.6
million (US$12.8 million) for
first half of fiscal year 2021, compared with RMB53.1 million for the same period of last year.
The increase was mainly driven by the growth of educational
services that were subject to income tax. The effective tax rate
for first half of fiscal year 2021 was 23.6%, compared with 21.0%
for the same period of last year.
Net Profit and Net Profit Attributable to the Company's
Shareholders
Net profit increased by 12.0%, to RMB245.6 million
(US$37.6 million) for the second
quarter of fiscal year 2021, from net profit of RMB219.2 million for the same period of last
year.
Net profit attributable to the Company's shareholders increased
by 9.9%, to RMB241.1 million (US$37.0
million) for the second quarter of fiscal year 2021, from
net profit attributable to the Company's shareholders of
RMB219.4 million for the same
period of last year.
Net profit increased by 35.6%, to RMB270.9 million
(US$41.5 million) for the first half
of fiscal year 2021, from net profit of RMB199.8 million for the same period of last
year.
Net profit attributable to the Company's shareholders increased
by 31.3%, to RMB268.0 million (US$41.1
million) for first half of fiscal year 2021, from net profit
attributable to the Company's shareholders of RMB204.1
million for the same period of last year.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share
were RMB0.58 (US$0.09) for the second quarter of fiscal
year 2021, compared with basic and diluted earnings per share
of RMB0.53 for the same period of last year.
Basic and diluted earnings per share
were RMB0.65 (US$0.10) for the first half of fiscal year
2021, compared with RMB0.49 for
the same period of last year.
Cash Flow
Net cash provided by operating activities was RMB835.4
million (US$128.0 million) for
the six months ended December 31, 2020, an increase of 75.5%
from RMB476.0 million for the
same period of last year. The increase was mainly due to an
increase in the amount of tuition received. Net cash used in
investing activities was RMB1,139.3 million (US$174.6 million) for the six months
ended December 31, 2020, compared with RMB465.2
million for the same period of last year. The increase was
mainly due to the payment of RMB34.0
million of the acquisition of Jinhua Hailiang Foreign
Language School ("JHFL") and the increase of term deposits placed
with a related party finance entity compared with the same period
of last year. Net cash used in financing activities
was RMB19.0 million (US$2.9
million) for the six months ended December 31, 2020,
compared with RMB53.1 million for the same period of last
year. The decrease was mainly due to that no dividend was paid to
non-controlling interests during current period, and less loan
repayment to a related party compared with the same period of last
year.
Balance Sheet
As of December 31, 2020, the Company had cash and cash
equivalents of RMB191.3 million (US$29.3 million), compared with RMB515.3
million as of June 30, 2020. As of December 31, 2020, the Company had term deposits
held at a related party finance entity of RMB1,988.3
million (US$304.7 million),
compared with RMB921.6 million as of June 30,
2020.
Business Combination Between Entities Under Common
Control
On July 15, 2020, the Company
entered into a sponsorship transfer agreement with its affiliate
Hailiang Education Investment Group Co., Ltd. ("Hailiang
Investment") to acquire 100% sponsorship of JHFL for a total
consideration of RMB34 million. In September 2020, the Company completed all the
required process to obtain the sponsorship of JHFL. Since the
Company and JHFL were under common control of Mr. Hailiang Feng, both before and after the
acquisition and the control was not temporary, the transaction was
accounted for as a business combination between entities under
common control. The Company recognized the assets and liabilities
of JHFL using the book value at the combination date. The
difference between the carrying amount of the net asset acquired
and the consideration paid was adjusted to "contributed capital".
The financial statements of JHFL were included in the Company's
consolidated financial statements based on the carrying amounts of
the assets and liabilities as if the combination had occurred at
the date that Mr Hailiang Feng first
obtained control of JHFL. The opening balances and the comparative
figures of the consolidated financial statements were also
restated.
Exchange Rate
This announcement contains conversion of certain Renminbi (RMB)
amounts into U.S. dollars (US$) at a specified rate solely for the
convenience of the reader. Unless otherwise noted, the conversion
of RMB into US$ was made at the rate of RMB6.5250 to US$1.00, the noon buying rate
in effect on December 31, 2020, as set forth in the H.10
Statistical Release of the Federal Reserve Board.
The Company will host its second quarter of fiscal year 2021
financial results conference call at 8:00 am Eastern
Time (5:00 am Pacific Time/9:00
pm Beijing Time) on March 10, 2021. To attend the call,
please use the information below for either dial-in access or
webcast access. When prompted on dial-in, ask for "Hailiang
Education Group/HLG".
Conference
Call
|
Date:
|
March 10,
2021
|
Time:
|
8:00 am ET,
U.S.
|
International Toll
Free:
|
United States: +1
888-346-8982
Mainland China: +86
400-120-1203
Hong Kong: +852
800-905-945
|
International:
|
International: +1
412-902-4272
|
Conference
ID:
|
Hailiang Education
Group/HLG
|
Please dial in at least 15 minutes before the commencement of
the call to ensure timely participation. For those unable to
participate, an audio replay of the conference call will be
available from approximately one hour after the end of the live
call until March 17, 2021. The dial-in for the replay is
+1-877-344-7529 within the United
States or +1-412-317-0088 internationally. The replay access
code is No. 10152749.
A live webcast and archive of the conference call will be
available at http://ir.hailiangedu.com.
About Hailiang Education Group Inc.
Hailiang Education (Nasdaq: HLG) is one of the largest primary,
middle, and high school educational service providers
in China. The Company primarily focuses on providing
distinguished, specialized, and internationalized education.
Hailiang Education is dedicated to providing students with
high-quality primary, middle, and high school, and international
educational services and strives to maintain the high quality of
its students' life, study, and development. Hailiang Education
adapts its educational services based upon its students'
individual aptitudes. Hailiang Education is devoted to improving
its students' academic capabilities, cultural accomplishments, and
international perspectives. Hailiang Education operates
multilingual programs including Chinese, English, Spanish,
Japanese, Korean, and French. In addition, Hailiang Education has
launched various diversified high-quality courses, such as
Mathematical Olympiad courses, A-level courses, Australia Victorian
Certificate of Education (VCE) courses, IELTS courses, TOEFL
courses, as well as SAT courses. The Company also has an extensive
cooperative network with more than 200 educational institutions and
universities globally. Hailiang Education is committed to providing
its students with greater opportunities to enroll in well-known
domestic and international universities to further their education.
For more information, please
visit http://ir.hailiangedu.com.
Forward-Looking Statement
This press release contains information about Hailiang
Education's view of its future expectations, plans, and prospects
that constitute forward-looking statements. These forward-looking
statements are made under the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical facts in this announcement are
forward-looking statements, including but not limited to the
following: general economic conditions in China, competition
in the education industry in China, the expected growth of the
Chinese private education market, Chinese governmental policies
relating to private educational services and providers of such
services, health epidemics and other outbreaks in China, the
Company's business plans, the Company's future business
development, results of operations, and financial condition,
expected changes in the Company's revenue and certain cost or
expense items, its ability to raise additional funding, its ability
to maintain and grow its business, variability of operating
results, its ability to maintain and enhance its brand, its
development and introduction of new products and services, the
number of students entrusted by schools, the successful integration
of acquired companies, technologies and assets into its portfolio
of software and services, marketing and other business development
initiatives, dependence on key personnel, the ability to attract,
hire, and retain personnel who possess the technical skills and
experience necessary to meet the requirements of its clients, and
its ability to protect its intellectual property, the outcome of
ongoing, or any future, litigation or arbitration, including those
relating to copyright and other intellectual property rights, and
other risks detailed in the Company's filings with the U.S.
Securities and Exchange Commission (the "SEC"). Hailiang Education
may also make written or oral forward-looking statements in its
periodic reports to the SEC, in its annual report to shareholders,
in press releases and other written materials, and in oral
statements made by its officers, directors, or employees to third
parties. Statements that are not historical facts, including
statements about Hailiang Education's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties, whether known or unknown, and are
based on current expectations and projections about future events
and financial trends that the Company believes may affect its
financial condition, results of operations, business strategy, and
financial needs. Investors can identify these forward-looking
statements by words or phrases such as "may," "will," "will make,"
"will be," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "potential," "continue," "endeavor to," "is/are
likely to," or other similar expressions. Further information
regarding these and other risks is included in our annual report on
Form 20-F and other filings with the SEC. All information provided
in this press release is as of the date of this press release, and
Hailiang Education undertakes no obligation to update any
forward-looking statements, except as may be required under
applicable law.
Contacts:
Mr. Litao Qiu
Board Secretary
Hailiang Education Group Inc.
Phone: +86-571-5812-1974
Email: ir@hailiangeducation.com
Ms. Tina Xiao
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
Hailiang
Education Group Inc.
|
Unaudited
Condensed Consolidated Statements of Profit and Other Comprehensive
Income
|
(Amounts in
thousands, except per share data)
|
|
|
For the Six Months
Ended December 31
|
For the Three
Months Ended December 31
|
|
2020
|
2019
(Restated)
|
2020
|
2019
(Restated)
|
|
RMB
|
USD
|
RMB
|
RMB
|
USD
|
RMB
|
Revenue
|
936,997
|
143,601
|
749,401
|
638,470
|
97,850
|
519,520
|
Cost of
revenue
|
(575,550)
|
(88,207)
|
(508,829)
|
(321,552)
|
(49,280)
|
(275,492)
|
|
|
|
|
|
|
|
Gross
profit
|
361,447
|
55,394
|
240,572
|
316,918
|
48,570
|
244,028
|
Other income,
net
|
28,394
|
4,352
|
49,801
|
10,159
|
1,557
|
34,566
|
Selling
expenses
|
(20,293)
|
(3,110)
|
(15,611)
|
(10,918)
|
(1,673)
|
(9,621)
|
Administrative
expenses
|
(32,711)
|
(5,013)
|
(31,783)
|
(17,947)
|
(2,750)
|
(15,228)
|
|
|
|
|
|
|
|
Operating
profit
|
336,837
|
51,623
|
242,979
|
298,212
|
45,704
|
253,745
|
Finance
income
|
18,340
|
2,811
|
13,900
|
10,743
|
1,646
|
5,814
|
Finance
costs
|
(674)
|
(103)
|
(3,910)
|
(385)
|
(59)
|
(217)
|
Net finance
income
|
17,666
|
2,708
|
9,990
|
10,358
|
1,587
|
5,597
|
|
|
|
|
|
|
|
Profit before
tax
|
354,503
|
54,331
|
252,969
|
308,570
|
47,291
|
259,342
|
Income tax
expenses
|
(83,646)
|
(12,819)
|
(53,145)
|
(63,003)
|
(9,656)
|
(40,138)
|
|
|
|
|
|
|
|
Net profit for
the
period
|
270,857
|
41,512
|
199,824
|
245,567
|
37,635
|
219,204
|
|
|
|
|
|
|
|
Profit
attributable to:
|
|
|
|
|
|
|
Net profit
attributable to the
Company's shareholders
|
267,977
|
41,070
|
204,131
|
241,083
|
36,948
|
219,434
|
Net
profit/(loss)
attributable to non-
controlling
interests
|
2,880
|
442
|
(4,307)
|
4,484
|
687
|
(230)
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
Basic and diluted
earnings per
share
|
0.65
|
0.10
|
0.49
|
0.58
|
0.09
|
0.53
|
|
|
|
|
|
|
|
Other
comprehensive (loss)/income
|
|
|
|
|
Other
comprehensive
(loss)/income, net
of nil income tax
|
(5,521)
|
(846)
|
1,223
|
(2,708)
|
(415)
|
(1,137)
|
Total
comprehensive
income
|
265,336
|
40,666
|
201,047
|
242,859
|
37,220
|
218,067
|
|
|
|
|
|
|
|
Total
comprehensive income/(loss)
attributable to:
|
|
|
|
|
Total
comprehensive
income
attributable to the
Company's
shareholders
|
262,456
|
40,224
|
205,354
|
238,375
|
36,533
|
218,297
|
Total
comprehensive
income/(loss)
attributable to
non-controlling
interests
|
2,880
|
442
|
(4,307)
|
4,484
|
687
|
(230)
|
|
|
|
|
|
|
|
Hailiang Education
Group Inc.
|
Unaudited
Condensed Consolidated Statements of Financial
Position
|
(Amounts in
thousands)
|
|
|
As of December 31,
2020
|
|
As of June 30,
2020
(Restated)
|
|
RMB
|
USD
|
|
RMB
|
Assets
|
|
|
|
|
Property and
equipment, net
|
664,546
|
101,846
|
|
652,726
|
Intangible assets and
goodwill, net
|
96,715
|
14,822
|
|
97,806
|
Right-of-use
assets
|
506,965
|
77,696
|
|
517,609
|
Contract
costs
|
16,675
|
2,556
|
|
10,924
|
Prepayments to third
party suppliers
|
131
|
20
|
|
75
|
Term deposits held at
a related party finance
entity
|
510,000
|
78,161
|
|
-
|
Deferred tax
assets
|
1,019
|
156
|
|
568
|
Non-current
assets
|
1,796,051
|
275,257
|
|
1,279,708
|
|
|
|
|
|
Other receivables due
from related parties
|
53,332
|
8,173
|
|
76,646
|
Other current
assets
|
39,862
|
6,109
|
|
37,259
|
Term deposits held at
a related party finance
entity
|
1,478,319
|
226,562
|
|
921,601
|
Restricted bank
deposits
|
3,324
|
509
|
|
324
|
Cash and cash
equivalents
|
191,324
|
29,322
|
|
515,297
|
Current
assets
|
1,766,161
|
270,675
|
|
1,551,127
|
|
|
|
|
|
Total
assets
|
3,562,212
|
545,932
|
|
2,830,835
|
|
|
|
|
|
Equity
|
|
|
|
|
Share
capital
|
268
|
41
|
|
268
|
Share
premium
|
134,583
|
20,626
|
|
134,583
|
Contributed
capital
|
218,034
|
33,415
|
|
252,034
|
Reserves
|
439,884
|
67,415
|
|
396,053
|
Retained
earnings
|
1,466,387
|
224,734
|
|
1,247,762
|
|
|
|
|
|
Total Hailiang
Education Group Inc.
shareholders' equity
|
2,259,156
|
346,231
|
|
2,030,700
|
Non-controlling
interests
|
13,678
|
2,096
|
|
10,797
|
Total
equity
|
2,272,834
|
348,327
|
|
2,041,497
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Contract
liabilities
|
2,635
|
404
|
|
3,159
|
Deferred tax
liabilities
|
5,138
|
787
|
|
4,607
|
Lease
liabilities
|
22,068
|
3,382
|
|
18,749
|
Non-current
liabilities
|
29,841
|
4,573
|
|
26,515
|
|
|
|
|
|
Trade and other
payables due to third parties
|
248,272
|
38,049
|
|
270,207
|
Other payables due to
related parties
|
138,483
|
21,223
|
|
148,363
|
Contract
liabilities
|
821,352
|
125,878
|
|
293,643
|
Income tax
payable
|
48,725
|
7,467
|
|
48,857
|
Lease
liabilities
|
2,705
|
415
|
|
1,753
|
Current
liabilities
|
1,259,537
|
193,032
|
|
762,823
|
|
|
|
|
|
Total
liabilities
|
1,289,378
|
197,605
|
|
789,338
|
|
|
|
|
|
Total equity and
liabilities
|
3,562,212
|
545,932
|
|
2,830,835
|
The foreign exchange of RMB into US$ has been made at
RMB6.5250 to US$1.00, the noon buying rate in effect on
December 31, 2020 as set forth in the
H.10 Statistical Release of the Federal Reserve Board.
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SOURCE Hailiang Education Group Inc.