For Immediate Release 22 August 2018
China 21st Century Education Group Limited
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(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 1598)
21st Century Education 2018 Interim Result
Financial Highlightsï¼For the six months ended of 30 June 2018ï¼
|Revenue amounted to approximately RMB101.6million, representing a YOY increase of approximately 13.5%
Gross profit amounted to approximately RMB49.5million, representing a YOY increase of approximately 13.8%.
Profit for the period amounted to approximately RMB29.3million, representing a YOY increase of 2.8%.
Adjusted Net Profit amounted to approximately RMB39.8 million, representing a YOY increase of approximately 20.6%.
Total number of students was 21,682, representing a YOY increase of approximately 46.3%
(22 August 2018 - Hong Kong) China 21st Century Education Group Limited ("21st Century Education" or the "Company" and its subsidiaries (together, the "Group") stock code:1598) is pleased to announce the unaudited interim condensed consolidated financial statements of the Group for the six months ended 30 June 2018 (the "Reporting Period"), together with the comparative figures for the corresponding period of 2017.
During the Reporting Period, the Group recorded the revenue approximately RMB101.6 million (As of 2017: RMB89.5 million), representing a year-on-year ("YOY") increase of approximately 13.5%. Gross profit of the Group increased by 13.8% in 2018 to RMB49.5 million (As of 2017: RMB43.5 million). Profit for the period increased by 2.8% to RMB29.3 million (As of 2017: RMB28.5 million). Adjusted Net Profit increased by 20.6% in 2018 to RMB39.8 million (As of 2017: RMB33.0 million). Total number of students was 21,682, representing an increase of 46.3% in 2018 (As of 2017: 14,820).
The Company drive revenue primarily from tuition (including tutoring fees) of schools from its students, boarding fees and service income for provision of college operation services to the west campus of Sifang College. The increase of revenue mainly due to the increased number of student recruitment and average. Other income and gains consisted of (i) interest income from banks; (ii) site use fees charged to certain secondary vocational schools and companies in connection with usage of the premises and facilities of the Shijiazhuang Institute of Technology to organize teaching activities and training sessions for external use; and (iii) gains incurred from early childhood education management output.
Being located in the core integrated area of Beijing, Tianjin and Hebei Province, the Company has strategic layout in place targeting at the most dynamic cultural and economic circles in north China. The Company focus on the operation of education asset, derive revenue from diverse sources including tertiary education and open education, K12 tutorial programs and preschool education, and have expand its customer coverage. Considering students as its priority, the Company committed to unremittingly providing clients with customized services and solutions based on individual demands. Leveraging on its self-innovated education system and standardized management, the Company dedicate to offering more friendly and convenient education services for students.
As of 30 June 2018, the Company had obtained all licenses, permits, approvals and certificates necessary to conduct operations in all material respects from the relevant government authorities in the PRC, and such licenses, permits, approvals and certificates have been examined and verified in the 2017 annual verification as scheduled and remained in full effect. Shijiazhuang Institute of Technology, Shijiazhuang High-tech Industrial Development Zone Tianshan Saintach Kindergarten* (ç³å®¶èé«æ°æè¡ç¢æ¥éç¼åæ°å¤©éå¤©å±±å¹¼å
å) and Shijiazhuang City Chang'an District Saintach Tutorial School* (ç³å®¶èå¸é·å®åæ°å¤©éå¹è¨å¸æ ¡) were awarded 2017 Annual Inspection Excellent School (Kindergarten) by Education Department of Hebei Province* (æ²³åçæè²å»³), Examination and Approval Bureau of Shijiazhuang Hi-tech Industrial Developmental Zone* (ç³å®¶èé«æ°åè¡æ¿å¯©æ¹å±) and Shijiazhuang Chang'an Education Bureau*(ç³å®¶èå¸é·å®åæè²å±).
With the deepening enforcement of the "Outline of the Plan for Coordinated Development of the Beijing-Tianjin-Hebei Region" (äº¬æ´¥åååç¼å±è¦åç¶±è¦), the capital's functional shift has accelerated, and the demand for industrial workers has escalated. According to the Frost & Sullivan Report, the compound growth rate of students enrolled to the private higher vocational colleges in Beijing-Tianjin-Hebei Integrated Area of 4.1% is higher than that of undergraduate and postgraduate of 3.4%. After the two-child policy liberalized and the birth population gradually reached the school age, the compound growth rate of students enrolled to the private kindergarten reached 11.6%, much higher than that of the public kindergarten that had increased the speed of opening kindergartens for inclusive kindergartens of 2.0%.
The Company increase the number of schools, expand the volume of students and diversification of customer base by centering on the "Endogenous Growth + Extension through Merger and Acquisition". In order to grow a significant presence in Hebei Province and the Beijing-Tianjin- Hebei Integrated Area, approximately 60% of the funds raised by the listing will be used for the acquisition and construction of schools. It is estimated that 13 kindergartens and 8 to 10 after-school tutoring centers will be increased through acquisitions by the end of 2019, with an aim of building a leading brand in the Beijing-Tianjin-Hebei region. Recently, the Company tend to acquire over 7 kindergartens in Beijing or other regions of Beijing-Tianjin-Hebei Area to expand service area.
21st Century Education significantly grow its successful business as a large private education service provider in Hebei Province and the larger Integrated Area. Thanks to the policy of integration of the Beijing-Tianjin-Hebei region, adjustment of economic structure, transformation and upgrade of industries and introduction of business, it is expected that there will be a leapfrog development in Hebei Province, and the income of residents in Hebei Province will increase with the development of economy. The market demands for preschool education and K12 after-school tutoring as well as the skilled talents are increasing, which provide opportunities for the development of higher education.
About China 21st Century Education Group Limited
China 21st Century Education Group Limited ("21st Century Education" or the "Company"), is a large established private education service provider based in Hebei Province, China, serving a wide range of students from preschool students in its kindergartens, to primary school, middle school and high school students in its tutorial centers, to junior college and continuing education students in its college. As of the Latest Practicable Date, the Company had a total of 15 schools located in Shijiazhuang, Hebei Province, including one private college (Shijiazhuang Institute of Technology), six Saintach Tutorial Schools (consisting of 11 Saintach Tutorial Centers) and eight Saintach Kindergartens. Total student enrollment in the 2017-2018 school was 21,682; Saintach Tutorial Centers ranked fourth and seventh in terms of total revenue in the year ended December 31, 2017 among private tutoring service providers in Shijiazhuang and Hebei Province, with a market share of 2.8% and 0.4%, respectively. The Company plans to expand its business and network in Hebei Province and the larger Integrated Area, and to strengthen its brand reputation.
This press release is issued by Wonderful Sky Financial Group Company Ltd. on behalf of China 21st Century Education Group Limited
For further information, please contact:
Wonderful Sky Financial Group Company Ltd.
Angie Li / Lesley Zhang / Kimma Niu
Tel: (852) 3970 2273 / 3970 2182 / 3970 2112
Fax: (852) 3102 0210
Email: [email protected] / [email protected] / [email protected]
22/08/2018 Dissemination of a Financial Press Release, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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