HANGZHOU, China, Nov. 12, 2021 /PRNewswire/ -- Hailiang
Education Group Inc. (Nasdaq: HLG) ("Hailiang Education," the
"Company" or "we"), a K-12 education and management service
provider in China, today announced
its financial results for the fourth quarter and the fiscal year
ended June 30, 2021.
"2021 was a challenging year, as the complex business
environment and the newly issued laws and policies brought numerous
changes to the education industry. Benefiting from our execution of
an 'Asset-light Development Model,' we provided our educational
services to more students, parents, and managed schools this year
and achieved positive results. For the 2021 fiscal year, our
revenue reached RMB1,375.8 million
(US$213.1 million), an increase of
33.9% from RMB1,027.4million for the
2020 fiscal year. Gross profit amounted to RMB647.2 million (US$100.2million), a year-over-year increase of
44.8%. Operating profit reached RMB612.8million (US$94.9
million), a year-over-year increase of 34.7%. Net profit
attributable to the shareholders of the Company was RMB483.0 million, an increase of 38.0% from
RMB350.0 million in the previous
fiscal year." commented Dr. Junwei
Chen, the Chairman and Chief Executive Officer of Hailiang
Education, "While the recently promulgated laws and policies
regulating the education industry present many challenges, they
also carried a range of new opportunities. Looking forward, only
the private schools with a first-class teaching team, teaching
quality, brand awareness, and services will be competitive.
Hailiang Education is dedicated to improving educational services
and teaching quality in our affiliated and managed schools through
diversified service models, which originated from our operating
philosophy— that 'each person has a talent; everyone can achieve
potential; make every life shine'. For example, the 'Star
Classroom,' a software as a service licensing and delivery model,
or SaaS, used to enrich teaching resources and teaching tools, the
'Learning Performance Analysis System,' a system to assist teachers
in mastering students' personalized learning, and the 'Home-School
Co-Education,' an application that connects parents who are out for
work with their children at home, all have contributed to the
Company's efforts in the promotion of education equity, the
improvement of teaching quality, and the alleviation of the burden
of education for families in rural areas. With school-operating
experience and achievements of Hailiang Education accumulated in
the past 26 years and deepening cooperation with leading companies
relevant to education, we plan to offer an array of school
services, such as education and management consulting, logistics
and supply chain management, educational information and technology
consulting, teacher training, after-school well-rounded education
services, study trips, overseas study consulting, and other
services to meet the needs of schools, teachers, students, and
parents, with the aim of establishing an industry ecosphere for
K-12 education services to achieve longer-term results and broader
benefits for society. "
"Executing on our 'Asset-light Development Model' and in order
to accelerate the offering of our high-quality educational
resources, we have been preparing to provide operation and
management services to third-party schools since 2017. Over the
past four years, the number of managed schools increased from 0 in
fiscal year 2017 to 27 in fiscal year 2021, the aggregate number of
students enrolled in managed schools increased from 0 in fiscal
year 2017 to 43,897 in fiscal year 2021. Our school network
increased from 8 in fiscal year 2017 to 41 in fiscal year 2021.
Notably, since September we started operating and managing two
additional managed schools, Longkou No.1 Middle School (Chongshi
Department) and Jingdong Yi Autonomous County No.1 Middle School,
located in Longkou City, Shandong
Province, and Pu'er City, Yunnan
Province, respectively. Both schools have a long history,
having been around for approximately 100 years. In response to new
government policy and market demand, we will concentrate on
accelerating the development of our operation and management
services, expanding our managed school network, enlarging the depth
and breadth of the whole industrial chain of K-12 education
services, and fostering new growth drivers."
Dr. Junwei Chen continued, "In
endeavoring to respond to the call to 'Comprehensively Promote
Rural Vitalization, Achieve Common Prosperity' from the Chinese
government and assist in shouldering the social responsibility
towards such goals, we have launched several rural vitalization
actions. By leveraging our experience and resources, gathered
through the provision of operation and management services for
public or private schools, we believe we are in a good position to
assist in the development of quality education in rural areas in
China. These rural vitalization
actions include the 'Rural Teachers Training Program', the
'Return of Talents to Rural', the
'Quality Improvement Program for Rural Education', the Facility
Construction and Intellectualization for Rural Education'.
Furthermore, the Company has established a fund to provide
institutional and financial support for the above actions.
Meanwhile, Hailiang Education was responsible for launching, and
has operated a series of public welfare and charitable education
projects for many years, including the 'Young Eagle Orphan
Cultivation Project', the 'Integrated Education for Autism—Rongai
Star Integration', the 'Poor Youth Talent Cultivation Project', the
'Belt and Road International Talent Project' and the 'Hailiang
Tibet Support Class', among other charity projects. By fiscal year
2021, all of such projects have attained desirable results and
cultivated a large number of outstanding young students."
Impact of 2021 Implementation Rules for Private Education
Laws
On May 14, 2021, the People's Republic of China's State Council
announced the issuance of the 2021 Implementation Rules for Private
Education Laws (the "Implementation Rules"), which became effective
on September 1, 2021. The
Implementation Rules prohibit social organizations and individuals
from controlling a private school that provides compulsory
education by means of merger, acquisition, contractual
arrangements, etc., and a private school providing compulsory
education is prohibited from conducting transactions with its
related parties.
According to IFRS 10 - Consolidated Financial Statements, we
concluded that we lost control of the affiliated entities providing
compulsory education services on September
1, 2021 (see "Subsequent events" for details). Further, we
considered the ancillary nature of the activities and the
insignificance of the costs related to the K9 compulsory education
business while the related schools were closed between June 30, 2021 and September 1, 2021. Thus, we have determined that,
we have ceased all revenue-generating activities related to the
compulsory education business as at June 30,
2021 and classified the historical financial results of
compulsory education business as discontinued operations in the
Company's Consolidated Statements of Profit or Loss and Other
Comprehensive Income for all periods presented.
Considering above impact from Implementation Rules and
uncertainties associated with our ability to recover from the net
assets arising from the impact of the Implementation Rules, we
identified impairment indicators for non-financial long-term
assets, such as the property and equipment, right-of-use assets,
intangible assets and goodwill, associated with the cash generating
unit of discontinued operations. An independent appraisal entity
was engaged to perform the impairment assessment.As a result, we
recognized impairment loss of approximately RMB 252.2 million (US$39.1
million), which was recognized in the results of
discontinued operations
During the fiscal year of 2021, the net loss from the
discontinued operations, net of tax amounted to RMB243.3 million (US$ 37.7
million). After excluding the above impairment loss, the
adjusted net profit from the discontinued operations was
RMB8.9 million (US$1.4 million), which had no significant impact
on the Company's profit.
Fourth Quarter of Fiscal Year 2021 Financial
Highlights
|
|
For the Quarter
Ended June 30,
|
|
(RMB millions,
except per share data)
|
|
2021
|
|
|
2020
|
|
|
%
Change
|
|
Continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
420.9
|
|
|
|
317.0
|
|
|
|
32.8
|
%
|
K-12 student
management services and high school curriculum
education services
|
|
|
334.1
|
|
|
|
287.2
|
|
|
|
16.3
|
%
|
Ancillary educational
services
|
|
|
71.3
|
|
|
|
12.3
|
|
|
|
479.7
|
%
|
Operation and
management services
|
|
|
15.5
|
|
|
|
17.5
|
|
|
|
-11.4
|
%
|
Gross
Profit
|
|
|
181.2
|
|
|
|
155.2
|
|
|
|
16.8
|
%
|
Gross
Margin
|
|
|
43.0
|
%
|
|
|
48.9
|
%
|
|
|
-5.9
|
pp
|
Operating
Profit
|
|
|
167.6
|
|
|
|
146.4
|
|
|
|
14.5
|
%
|
Operating
Margin
|
|
|
39.8
|
%
|
|
|
46.2
|
%
|
|
|
-6.4
|
pp
|
Net Profit
|
|
|
127.4
|
|
|
|
102.6
|
|
|
|
24.2
|
%
|
Net Profit
Attributable to the Company's Shareholders
|
|
|
129.8
|
|
|
|
103.4
|
|
|
|
25.5
|
%
|
Earnings Per
Share
|
|
|
0.31
|
|
|
|
0.25
|
|
|
|
25.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Notes: "pp"
represents percentage points
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenue was RMB420.9 million
(US$65.2million), an increase of
32.8% from RMB317.0 million for the
same period of last year.
- Gross profit was RMB181.2 million
(US$28.1 million), an increase of
16.8% from RMB155.2 million for the
same period of last year.
- Gross margin was 43.0%, compared with 48.9% for the same period
of last year.
- For continuing operations, net profit attributable to the
Company's shareholders was RMB129.8
million (US$20.1 million), an
increase of 25.5% from RMB103.4
million for the same period of last year.
- For continuing operations, basic and diluted earnings per share
were RMB0.31 (US$0.05), compared with the basic and diluted
earnings per share of RMB0.25 for the
same period of last year.
Fiscal Year 2021 Financial Highlights
|
|
For the Twelve
Months Ended June 30,
|
|
(RMB millions,
except per share data)
|
|
2021
|
|
|
2020
|
|
|
%
Change
|
|
Continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
1,375.8
|
|
|
|
1,027.4
|
|
|
|
33.9
|
%
|
K-12 student
management services and high school curriculum
education services
|
|
|
1,111.6
|
|
|
|
861.9
|
|
|
|
29.0
|
%
|
Ancillary educational
services
|
|
|
204.2
|
|
|
|
121.7
|
|
|
|
67.8
|
%
|
Operation and
management services
|
|
|
60.0
|
|
|
|
43.8
|
|
|
|
37.0
|
%
|
Gross
Profit
|
|
|
647.2
|
|
|
|
447.1
|
|
|
|
44.8
|
%
|
Gross
Margin
|
|
|
47.0
|
%
|
|
|
43.5
|
%
|
|
|
3.5
|
pp
|
Operating
Profit
|
|
|
612.8
|
|
|
|
455.1
|
|
|
|
34.7
|
%
|
Operating
Margin
|
|
|
44.5
|
%
|
|
|
44.3
|
%
|
|
|
0.2
|
pp
|
Net Profit
|
|
|
482.1
|
|
|
|
345.8
|
|
|
|
39.4
|
%
|
Net Profit
Attributable to the Company's Shareholders
|
|
|
483.0
|
|
|
|
350.0
|
|
|
|
38.0
|
%
|
Earnings Per
Share
|
|
|
1.17
|
|
|
|
0.85
|
|
|
|
38.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Notes: "pp"
represents percentage points
|
|
|
|
|
|
|
|
|
|
|
|
|
We have restated the comparative information as a result of the
business combination between entities under common control.
The results of compulsory education business have been
reclassified to discontinued operations and the prior year
comparative results have been re-presented throughout the
consolidated financial statements. See "Impact of 2021
Implementation Rules for Private Education Laws" for details.
- Revenue was RMB1,375.8 million
(US$213.1 million), an increase of
33.9% from RMB1,027.4 million for the
same period of last year.
- Gross profit was RMB647.2 million
(US$100.2 million), an increase of
44.8% from RMB447.1 million for the
same period of last year.
- Gross margin was 47.0%, compared with 43.5% for the same period
of last year.
- For continuing operations, net profit attributable to the
Company's shareholders was RMB483.0
million (US$74.8 million), an
increase of 38.0% from RMB350.0
million for the same period of last year.
- For continuing operations, basic and diluted earnings per share
was RMB1.17 (US$0.18), compared with the basic and diluted
earnings per share of RMB0.85 for the
same period of last year.
Fiscal Year 2021 Operational Highlights
- As of June 30, 2021, we had 41
schools in our school network, 27 of which are managed schools. As
of June 30, 2021, we provided K-12
student management services and high school curriculum education
services to 27,972 students. The enrollments in our managed schools
were 43,897.
- In the 2020/2021 school year,
212 students from our affiliated schools were admitted into dual
first-class universities. Among them, 8 students were admitted to
Peking University and Tsinghua University, and 17 students were
admitted to top-tier domestic universities, such as Shanghai Jiao
Tong University, Fudan University, and Zhejiang University through the 2021
"strengthening basic disciplines plan," an admission plan hosted by
the Ministry of Education of PRC, and "the trinity system," an
admission system hosted by Zhejiang province. Four students of grade two
in Hailiang Senior High School were accepted into the "Innovation
Experimental Class" of the Junior Class of the University of
Science and Technology of China,
having satisfied the strict selection criteria and accomplishing
excellent college entrance examination results.
- In the 2020/2021 school year, 81% of the students in the 2021
graduating class of our international programs have received a
total of nearly 600 formal and conditional offers for advanced
education. Among them, 100% of the students in the General
Certificate of Education Advanced Level ("A-Level") class and 93%
of the students in the Victoria Certificate of Education ("VCE")
class have received admission letters from the global top 100
universities[1]. In
addition, 75% of the students from the A-Level class and 87% of the
students from VCE class have received offers from the global top 50
universities[1].
- In the 2020/2021 school year, our students won more than 200
awards at provincial, national, and international levels in the
academic competition field, including: students won four gold
medals and one bronze medal in the 2020 Chinese Mathematical
Olympiad (national level); nine students won the Provincial First
Prize of the National High School Mathematics League in 2020, and
six of them were selected into the provincial team; three students
won the Provincial First Prize of the 37th National Middle School
Student Physics Competition in 2020, and one of them also won the
silver medal in the national final; our student won a gold medal in
2021 international Asian and Pacific Informatics Olympic
Competition (international level), four silver medals and one
bronze medal in the 2021 38th National Youth Informatics Olympiad
(national level); students won one gold medal, two silver medals,
and two bronze medals in the Second National Middle School Students
Geoscience Competition of "Hailiang Cup" (national level); two
students won the Provincial First Prize of the National Middle
School Student Biology League in 2020; and two students won the
Provincial First Prize of the China Chemistry Olympiad in 2020.
- In the 2020/2021 school year, our students won a number of
national and international awards in physical education and in the
comprehensive quality field, including: two gold medals and one
silver medal in the 2020 China Middle School Swimming Championship
and the 18th World Middle School Summer Games Selective Trials; the
Championship of the National U15 Basketball Final in 2020 and the
finals of the Cadillac China Junior Middle School Basketball League
in 2020-2021 season; the Second Prize of the "Luohe Cup" National
Youth U-series 7-a-side Rugby Championship in 2020. Besides, two
students' inventions were granted with the patents of utility model
by the State Intellectual Property Office; and five students won
the International Gold Medal of the ASDAN Simulation Business
Competition.
[1] As ranked by
either the QS World University Rankings or U.S. News World
University Rankings
|
Fourth Quarter and the Fiscal Year 2021 Financial
Results
Unless otherwise stated, the following discussion of our fourth
quarter and the fiscal year 2021 financial results of profit or
loss and other comprehensive income is on a continuing operations
basis.
Revenue
Revenue increased by 32.8%
to RMB420.9million (US$65.2million) for the fourth quarter of fiscal
year 2021, from RMB317.0 million for the same period of
last year. Revenue increased by 33.9% to RMB1,375.8
million (US$213.1 million) for
the fiscal year 2021, from RMB1,027.4 million for the
same period of last year.
K-12 student management services and high school curriculum
education services include accommodation and after-school
enrichment services to K-12 school students and high school
curriculum education services. Revenue from K-12 student management
services and high school curriculum education services increased by
29.0%, to RMB1,111.6 million
(US$172.2million) for the fiscal year
2021, from RMB861.9 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.
Ancillary educational services primarily included well-rounded
education services, academic subject tutoring services, study trips
and overseas study consulting services. Revenue from such ancillary
educational services increased by 67.8% to RMB204.2million (US$31.6million) for the fiscal year 2021,
from RMB121.7 million for the same period of last year.
This was mainly due to the growth in the number of students
enrolled in the well-rounded education services and students of
international education program who received overseas study
consulting services.
Revenue from operation and management services increased by
37.0%, to RMB60.0 million
(US$9.3 million) for the fiscal year
2021, from RMB43.8 million for the same period of last
year. This was mainly due to two new managed schools in Suqian City
and the expansion of our service scope to some of our managed
schools.
Cost of Revenue
Cost of revenue increased by 48.1% to RMB239.8
million (US$37.1 million) for
the fourth quarter of fiscal year 2021, from RMB161.8
million for the same period of last year. Cost of revenue
increased by 25.6% to RMB728.6 million (US$112.8 million) for the fiscal year 2021,
from RMB580.3 million for the same period of last year.
The increase was primarily due to the increased compensation levels
of employees and an increase in the number of employees.
Gross Profit and Gross Margin
Gross profit increased by 16.8% to RMB181.2 million
(US$28.1 million) for the fourth
quarter of fiscal year 2021, from RMB155.2 million for
the same period of last year. Gross profit increased by 44.8%
to RMB647.2 million (US$100.2
million) for the fiscal year 2021, from RMB447.1
million for the same period of last year.
Gross margin was 43.0% for the fourth quarter of fiscal year
2021, compared with 48.9% for the same period of last year. Gross
profit margin was 47.0% for the fiscal year 2021, compared with
43.5% for the same period of last year.
Other Income, net
Other income was RMB19.5
million (US$3.0 million) for the
fourth quarter of fiscal year 2021, compared with RMB12.7
million for the same period of last year. Other income
was RMB46.6 million (US$7.2
million) for the fiscal year 2021, compared
with RMB67.1 million for the same period of last year.
Changes in other income are primarily related to the government
grants of subsidies we received from the local government.
Operating Expenses
Operating expenses increased by 54.0% to RMB33.1 million
(US$5.1 million) for the fourth
quarter of fiscal year 2021, from RMB21.5 million for the
same period of last year. Operating expenses increased by 37.2%
to RMB81.1 million (US$12.6
million) for the fiscal year 2021, from RMB59.1
million for the same period of last year.
Selling expenses increased by 158.4% to RMB8.9 million
(US$1.4 million) for the fourth
quarter of fiscal year 2021, from RMB3.5 million for the
same period of last year. Selling expenses increased by 113.3%
to RMB29.7 million (US$4.6
million) for the fiscal year 2021, from RMB13.9
million for the same period of last year. This increase was
primarily due to the revenue increase of the well-rounded education
services and academic subject tutoring services, which resulted in
the increase of the student enrollment rewards for recruitment
compared to the same period of last year.
Administrative expenses increased by 34.0%, to RMB24.2
million (US$3.7 million) for the
fourth quarter of fiscal year 2021, from RMB18.0
million for the same period of last year. Administrative
expenses increased by 13.7% to RMB51.3 million (US$8.0 million) for the fiscal year 2021,
from RMB45.1 million for the same period of last year.
This increase was primarily due to increase in labor costs and the
number of our office and administrative staffs.
Finance Income and Finance Costs
Finance income increased by 273.3% to RMB12.7 million
(US$2.0 million) for the fourth
quarter of fiscal year 2021, from RMB3.4 million for the
same period of last year. Finance income increased by 123.5%
to RMB35.8 million (US$5.5
million) for the fiscal year 2021, from RMB16.0
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 cost was RMB0.3 million (US$0.04 million) for the fourth quarter of fiscal
year 2021, compared with RMB0.2 million for the same
period of last year. Finance costs decreased by 66.5%
to RMB1.2 million (US$0.2
million) for the fiscal year 2021, from RMB3.4
million for the same period of last year. This decrease was
primarily due to the lump-sum payment of certain 18-year lease
liabilities under 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 RMB52.6
million (US$8.2 million) for
the fourth quarter of fiscal year 2021, compared with RMB47.0 million for the same period of last year.
Income tax expense was RMB165.4
million (US$25.6 million) for
the fiscal year 2021, compared with RMB121.9
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.
Net Profit and Net Profit Attributable to the Company's
Shareholders
For the fourth quarter of fiscal year 2021, net profit from
continuing operations was RMB127.4 million (US$19.7 million), compared with RMB102.6 million for the same period of last
year. Net loss from continuing and discontinued operations
was RMB142.4 million (US$22.1
million), compared with net profit of RMB92.2 million for the same period of last
year.
For the fourth quarter of fiscal year 2021, net profit from
continuing operations attributable to the Company's shareholders
was RMB129.8 million (US$20.1
million), compared with RMB103.4 million for the same period of last
year. Net loss from continuing and discontinued operations
attributable to the Company's shareholders was RMB142.3
million (US$22.0 million), compared
with net profit of RMB93.0
million for the same period of last year.
For the fiscal year 2021, net profit from continuing operations
was RMB482.1 million (US$74.7
million), compared with net profit of RMB345.8 million for the same period of last
year. Net profit from continuing and discontinued operations
was RMB238.8 million (US$37.0
million), compared with net profit of RMB370.0 million for the same period of last
year.
For the fiscal year 2021, net profit from continuing operations
attributable to the Company's shareholders was RMB483.0
million (US$74.8 million), compared
with net profit from continuing operations attributable to the
Company's shareholders of RMB350.0 million for the same
period of last year. Net profit from continuing and discontinued
operations attributable to the Company's shareholders
was RMB235.1 million (US$36.4
million), compared with net profit from continuing and
discontinued operations attributable to the Company's shareholders
of RMB374.2 million for the same
period of last year.
Basic and Diluted Earnings per Share
For the fourth quarter of fiscal year 2021, basic and diluted
earnings per share from continuing operations
was RMB0.31 (US$0.05) , compared with basic and diluted
earnings per share from continuing operations of RMB0.25 for
the same period of last year. Basic and diluted loss per share from
continuing and discontinued operations
was RMB0.34 (US$0.05), compared with basic and diluted
earnings per share from continuing operations of RMB0.23 for
the same period of last year.
For the fiscal year 2021, basic and diluted earnings per share
from continuing operations was RMB1.17 (US$0.18) , compared with RMB0.85 for the same period of last year.
Basic and diluted earnings per share from continuing and
discontinued operations was RMB0.57 (US$0.09), compared
with RMB0.91 for the same period
of last year.
Cash Flow
Net cash provided by operating activities was RMB893.4
million (US$138.4 million) for
the fiscal year 2021, from RMB444.4
million for the same period of last year. Net cash used in
investing activities was RMB1,029.2 million (US$159.4 million) for the fiscal year 2021,
compared with RMB149.5 million for the same period of
last year. Net cash used in financing activities was RMB100.5
million (US$15.6 million) for
the fiscal year 2021, compared with RMB50.4 million for
the same period of last year.
Balance Sheet
As of June 30, 2021, the Company had cash and cash
equivalents of RMB279.4 million (US$43.3 million), compared with RMB516.4
million as of June 30, 2020. As of June 30, 2021, the Company had term deposits held
at a related party finance entity in the amount of RMB1,898.2
million (US$294.0 million),
compared with RMB921.6 million as of June 30,
2020.
Subsequent events
Loss from loss control of affiliated entities providing
compulsory education services
As disclosed before, a private school providing compulsory
education is prohibited from conducting transactions with its
related party. Since the announcement of the Implementation Rules,
we have been continuously assessing the impact of the
Implementation Rules, including whether we would continue to
control the affiliated entities providing compulsory education
services. In accordance with IFRS 10 - Consolidated Financial
Statements, we have concluded that we lost control of these
affiliated entities since September 1,
2021, in view of the significant uncertainties and
restrictions the Implementation Rules impose on the Company's
ability to direct the range of ongoing activities that would most
significantly impact the returns of those entities and to receive
returns that are commensurate with an ownership interest.
Disposal of Mingyou Future
Hailiang Mingyou Future (Zhejiang) Education Technology Co., Ltd. and
its subsidiaries (collectively, "Mingyou Future") were mainly
engaged in academic subject tutoring. On October 9, 2021, the Company disposed Mingyou
Future and its subsidiaries to Hailiang Investment, a related party
controlled by Mr. Feng, for a consideration of RMB6.5 million (US$1.0
million). During the fiscal year of 2021, net loss derived
from Mingyou Future amounted to RMB1.8
million (US$0.3 million) ,
which was immaterial to the Company's business and financial
performance.
Exchange Rate
This announcement contains conversion of certain Renminbi (RMB)
amounts into U.S. dollars (US$) 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 RMB6.4566 to US$1.00, the noon buying rate
in effect on June 30, 2021, as set forth in the H.10
Statistical Release of the Federal Reserve Board.
The Company will host its fiscal year 2021 financial results
conference call at 7:00 pm Eastern Time on November 12,
2021 (4:00 pm Pacific Time on
November 12, 2021/8:00
am Beijing Time on November 13,
2021). To attend the call, please use the information below
for dial-in access. When prompted on dial-in, ask for "Hailiang
Education Group/HLG".
Conference
Call
|
|
Date:
|
November 12,
2021
|
|
|
Time:
|
7:00 pm 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 November 19, 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. 10161927.
About Hailiang Education Group Inc.
Hailiang Education Group Inc. (Nasdaq: HLG) is one of the
largest K-12 Education and management 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 high school curriculum education, K-12 student
management services, ancillary educational services, and education
and management services, and it 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. For more information, please
visit http://ir.hailiangedu.com.
Forward-Looking Statement
This press release contains certain information about
Hailiang Education's view of its future expectations, plans, and
prospects that may 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. Certain statements, other than statements of historical
facts, in this announcement are forward-looking statements, may
include,, but are 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, "assess," "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
Hailiang Education
Group Inc.
Unaudited
Condensed Consolidated Statements of Profit and Other Comprehensive
Income
(Amounts in
thousands, except per share data)
|
|
|
For the Twelve
Months Ended June 30
|
|
|
For the Three
Months Ended June 30
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
Revenue
|
|
1,375,790
|
|
|
|
213,083
|
|
|
|
1,027,373
|
|
|
|
420,924
|
|
|
|
65,193
|
|
|
|
317,021
|
Cost of
revenue
|
|
(728,586)
|
|
|
|
(112,844)
|
|
|
|
(580,260)
|
|
|
|
(239,771)
|
|
|
|
(37,136)
|
|
|
|
(161,846)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
647,204
|
|
|
|
100,239
|
|
|
|
447,113
|
|
|
|
181,153
|
|
|
|
28,057
|
|
|
|
155,175
|
Other income,
net
|
|
46,630
|
|
|
|
7,222
|
|
|
|
67,070
|
|
|
|
19,493
|
|
|
|
3,019
|
|
|
|
12,685
|
Selling
expenses
|
|
(29,737)
|
|
|
|
(4,606)
|
|
|
|
(13,944)
|
|
|
|
(8,924)
|
|
|
|
(1,382)
|
|
|
|
(3,453)
|
Administrative
expenses
|
|
(51,321)
|
|
|
|
(7,949)
|
|
|
|
(45,118)
|
|
|
|
(24,157)
|
|
|
|
(3,741)
|
|
|
|
(18,026)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
612,776
|
|
|
|
94,906
|
|
|
|
455,121
|
|
|
|
167,565
|
|
|
|
25,953
|
|
|
|
146,381
|
Finance
income
|
|
35,840
|
|
|
|
5,551
|
|
|
|
16,037
|
|
|
|
12,731
|
|
|
|
1,971
|
|
|
|
3,410
|
Finance
costs
|
|
(1,151)
|
|
|
|
(178)
|
|
|
|
(3,435)
|
|
|
|
(274)
|
|
|
|
(42)
|
|
|
|
(157)
|
Net finance
income
|
|
34,689
|
|
|
|
5,373
|
|
|
|
12,602
|
|
|
|
12,457
|
|
|
|
1,929
|
|
|
|
3,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before
tax
|
|
647,465
|
|
|
|
100,279
|
|
|
|
467,723
|
|
|
|
180,022
|
|
|
|
27,882
|
|
|
|
149,634
|
Income tax
expenses
|
|
(165,355)
|
|
|
|
(25,610)
|
|
|
|
(121,924)
|
|
|
|
(52,642)
|
|
|
|
(8,153)
|
|
|
|
(47,001)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from
continuing operations
|
|
482,110
|
|
|
|
74,669
|
|
|
|
345,799
|
|
|
|
127,380
|
|
|
|
19,729
|
|
|
|
102,633
|
Profit/(loss) from
discontinued
operations, net of tax
|
|
(243,337)
|
|
|
|
(37,688)
|
|
|
|
24,205
|
|
|
|
(269,761)
|
|
|
|
(41,781)
|
|
|
|
(10,441)
|
Net
Profit/(loss)
|
|
238,773
|
|
|
|
36,981
|
|
|
|
370,004
|
|
|
|
(142,381)
|
|
|
|
(22,052)
|
|
|
|
92,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
attributable to the
Company's shareholders
|
|
235,092
|
|
|
|
36,411
|
|
|
|
374,238
|
|
|
|
(142,273)
|
|
|
|
(22,035)
|
|
|
|
92,989
|
Profit from
continuing operations
|
|
483,049
|
|
|
|
74,815
|
|
|
|
349,983
|
|
|
|
129,782
|
|
|
|
20,101
|
|
|
|
103,380
|
Profit/(loss) from
discontinued
operations
|
|
(247,957)
|
|
|
|
(38,404)
|
|
|
|
24,255
|
|
|
|
(272,055)
|
|
|
|
(42,136)
|
|
|
|
(10,391)
|
Profit/(loss)
attributable to non-
controlling interests
|
|
3,681
|
|
|
|
570
|
|
|
|
(4,234)
|
|
|
|
(108)
|
|
|
|
(17)
|
|
|
|
(797)
|
Loss from continuing
operations
|
|
(939)
|
|
|
|
(145)
|
|
|
|
(4,184)
|
|
|
|
(2,402)
|
|
|
|
(372)
|
|
|
|
(747)
|
Profit/(loss) from
discontinued
operations
|
|
4,620
|
|
|
|
715
|
|
|
|
(50)
|
|
|
|
2,294
|
|
|
|
355
|
|
|
|
(50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings/(loss) per
share
|
|
0.57
|
|
|
|
0.09
|
|
|
|
0.91
|
|
|
|
(0.34)
|
|
|
|
(0.05)
|
|
|
|
0.23
|
Earnings per share
– Continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
|
1.17
|
|
|
|
0.18
|
|
|
|
0.85
|
|
|
|
0.31
|
|
|
|
0.05
|
|
|
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Profit/(loss)
|
|
238,773
|
|
|
|
36,981
|
|
|
|
370,004
|
|
|
|
(142,381)
|
|
|
|
(22,052)
|
|
|
|
92,192
|
Other comprehensive
income/(loss), net
of nil income tax
|
|
(6,248)
|
|
|
|
(968)
|
|
|
|
2,326
|
|
|
|
(1,021)
|
|
|
|
(158)
|
|
|
|
(81)
|
Total
comprehensive income/(loss)
|
|
232,525
|
|
|
|
36,013
|
|
|
|
372,330
|
|
|
|
(143,402)
|
|
|
|
(22,210)
|
|
|
|
92,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income/(loss)
attributable to the Company's
shareholders
|
|
228,844
|
|
|
|
35,443
|
|
|
|
376,564
|
|
|
|
(143,294)
|
|
|
|
(22,193)
|
|
|
|
92,908
|
Total
comprehensive income/(loss)
attributable to non-controlling
interests
|
|
3,681
|
|
|
|
570
|
|
|
|
(4,234)
|
|
|
|
(108)
|
|
|
|
(17)
|
|
|
|
(797)
|
Hailiang Education
Group Inc.
Unaudited
Condensed Consolidated Statements of Financial
Position
(Amounts in
thousands)
|
|
|
As of June 30,
2021
|
|
|
As of June 30,
2020
|
|
RMB
|
|
|
USD
|
|
|
RMB
|
Assets
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
465,734
|
|
|
|
72,133
|
|
|
|
659,851
|
Intangible assets and
goodwill, net
|
|
18,300
|
|
|
|
2,834
|
|
|
|
97,806
|
Right-of-use
assets
|
|
502,813
|
|
|
|
77,876
|
|
|
|
517,609
|
Contract
costs
|
|
12,438
|
|
|
|
1,926
|
|
|
|
11,161
|
Prepayments to third
party suppliers
|
|
-
|
|
|
|
-
|
|
|
|
142
|
Term deposits held at
a related party finance
entity
|
|
1,420,939
|
|
|
|
220,075
|
|
|
|
-
|
Deferred tax
assets
|
|
859
|
|
|
|
133
|
|
|
|
568
|
Non-current
assets
|
|
2,421,083
|
|
|
|
374,977
|
|
|
|
1,287,137
|
|
|
|
|
|
|
|
|
|
|
|
Other receivables due
from related parties
|
|
53,868
|
|
|
|
8,343
|
|
|
|
77,442
|
Other current
assets
|
|
37,785
|
|
|
|
5,852
|
|
|
|
36,516
|
Term deposits held at
a related party finance
entity
|
|
477,303
|
|
|
|
73,925
|
|
|
|
921,601
|
Restricted bank
deposits
|
|
1,324
|
|
|
|
205
|
|
|
|
324
|
Cash and cash
equivalents
|
|
279,420
|
|
|
|
43,277
|
|
|
|
516,446
|
Current
assets
|
|
849,700
|
|
|
|
131,602
|
|
|
|
1,552,329
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
3,270,783
|
|
|
|
506,579
|
|
|
|
2,839,466
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
268
|
|
|
|
41
|
|
|
|
268
|
Share
premium
|
|
134,583
|
|
|
|
20,844
|
|
|
|
134,583
|
Contributed
capital
|
|
197,984
|
|
|
|
30,664
|
|
|
|
253,034
|
Reserves
|
|
442,953
|
|
|
|
68,605
|
|
|
|
396,053
|
Retained
earnings
|
|
1,424,850
|
|
|
|
220,681
|
|
|
|
1,242,906
|
|
|
|
|
|
|
|
|
|
|
|
Total Hailiang
Education Group Inc. shareholders' equity
|
|
2,200,638
|
|
|
|
340,835
|
|
|
|
2,026,844
|
Non-controlling
interests
|
|
16,222
|
|
|
|
2,512
|
|
|
|
10,797
|
Total
equity
|
|
2,216,860
|
|
|
|
343,347
|
|
|
|
2,037,641
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Contract
liabilities
|
|
132
|
|
|
|
20
|
|
|
|
3,159
|
Deferred tax
liabilities
|
|
4,736
|
|
|
|
734
|
|
|
|
4,607
|
Lease
liabilities
|
|
30,521
|
|
|
|
4,727
|
|
|
|
18,749
|
Non-current
liabilities
|
|
35,389
|
|
|
|
5,481
|
|
|
|
26,515
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other
payables due to third parties
|
|
376,747
|
|
|
|
58,351
|
|
|
|
272,012
|
Other payables due to
related parties
|
|
134,982
|
|
|
|
20,906
|
|
|
|
156,709
|
Contract
liabilities
|
|
444,865
|
|
|
|
68,901
|
|
|
|
295,979
|
Income tax
payable
|
|
56,707
|
|
|
|
8,783
|
|
|
|
48,857
|
Lease
liabilities
|
|
5,233
|
|
|
|
810
|
|
|
|
1,753
|
Current
liabilities
|
|
1,018,534
|
|
|
|
157,751
|
|
|
|
775,310
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,053,923
|
|
|
|
163,232
|
|
|
|
801,825
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and
liabilities
|
|
3,270,783
|
|
|
|
506,579
|
|
|
|
2,839,466
|
|
The foreign exchange
of RMB into US$ has been made at RMB6.4566 to US$1.00, the noon
buying rate in effect on June 30, 2021 as set forth in the H.10
Statistical Release of the Federal Reserve Board.
|
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SOURCE Hailiang Education