Hailiang Education Group, an education and management service provider to primary, middle, and high schools in China, has reported net profit of ¥366.6 million (£42.4 million) for its 2020 fiscal year ending 30 June 2020, up from ¥315.8 million reported for fiscal year 2019.
Revenue for the year was ¥1.48 billion, compared to ¥1.5 billion reported for fiscal year 2019.
During the fiscal year, the company’s school network expanded to 37 schools, nine of which were affiliated schools that it sponsors and 28 of which were schools to which Hailiang provides education and management services.
Hailiang Education chairman and chief executive Dr Junwei Chen said: “Despite temporary disruptions and short-term impact on our business caused by the Covid-19 pandemic, our strong and stable performance has demonstrated our continued progress in executing and innovating our growth strategy and highlighted the resilience of our underlying business.
“The increase of net profit attributable to the company’s shareholders was primarily due to the continued increase of tuition generated from our affiliated schools and the steady-improving cost control capability. For the fiscal year 2020, our gross profit margin was 33.7% and net profit attributable to the company’s shareholders margin was 25%, increased from 31.5% and 19.6% respectively, compared to the same period last year.
“When the outbreak of Covid-19 first appeared, with careful and proactive arrangements and deployments, we regarded the safety and health of all our students and employees as top priority and made appropriate short-term adjustments to our business operations when needed. To reduce the negative impact of Covid-19 on planned teaching progress of the spring semester, we launched Hailiang VIP Cloud Virtual Classroom in February 2020 to ensure that our students could continue their courses as planned before the outbreak of Covid-19 via online live classes.
“Benefiting from our abundant educational resources, outstanding facility capabilities, and technical advantages in IT infrastructure, our online education services and Smart Campus platform have thrived during the outbreak of Covid-19.
“As a result of these countermeasures, no material curriculum education service fees were refunded. We will continually monitor the development of the pandemic, assess, and timely disclose the impact of Covid-19 on our financial position and financial performance.”
Date published: 16 October 2020