Hailiang Education Group, an education and management service provider of primary, middle, and high schools in China, has reported net profit of ¥197.6 million (£22.8 million) for the first six months of fiscal year 2020 ending 31 December 2019, up from ¥129.6million reported for the first six months of fiscal year 2019, a 52.5% increase.
Revenue for the six-month period was ¥736.7 million, up from ¥652.7 million reported for the first half of fiscal year 2019, a 12.9% increase.
Hailiang Education chairman and chief executive Ming Wang said: “We are very pleased to build a one-stop K12 education integrated service platform by providing excellent basic, international education programme and ancillary education services, delivering solid performance results.
The increase [in profit] was primarily due to the continued growth of tuition of our affiliated schools and the expansion of our study trips and overseas study consulting services. Furthermore, our earning capability continued to grow. For the first six months of fiscal year 2020, our gross profit margin was 32.3% and net profit margin was 26.8%, increased from 30.3% and 19.9%, respectively, compared to the same period last year.
“The outbreak of Covid-19 has caught the world off guard. Schools in many regions were ordered by the government to postpone the spring semester of 2020 or to suspend their ongoing classes. At present, it is estimated that the epidemic will have a negative impact on the operations of our study trip services and onsite educational training services. Besides, since there is still uncertainty about the beginning and ending time of the spring semester, we are evaluating the impact on the revenue recognition of K12 educational services. We will continually monitor the development of the epidemic, assess the impact on our financial position and financial performance, orderly prepare for back-to-school in accordance with government directives, and timely disclose the impact of the outbreak on our financial position and operations.
“On the other hand, online education services have thrived during the outbreak of Covid-19. Relying on our abundant educational resources, outstanding facility capabilities, and technical advantages across our affiliated and management schools, we launched ‘Hailiang VIP Cloud Virtual Classroom’ in February 2020. As of February 29, 2020, more than 2,000 teachers and nearly 38,000 students were participating in the online live classes. Online education services are not just a countermeasure for this emergency, but we intend that it will be a growing and long-lasting creative initiative to supplement the way that we deliver quality innovative K12 educational services.”
Date published: 3 April 2020