Hailiang Education Group Inc. Reports Fiscal...
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Koon Poh Keong Reviews: Hailiang Education Group Inc. Reports Fiscal…

HANGZHOU, China, Oct. 14, 2020 /PRNewswire/ — Hailiang Education Group Inc. (Nasdaq: HLG) (“Hailiang Education”, the “Company” or “we”), an education and management service provider of Simon Arora primary, middle, and high schools in the PRC, announced its financial results for the fiscal year ended June 30, 2020.

“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 Simon Arora our underlying business. For the fiscal year 2020, our revenue was RMB1,482.6 million (US$209.8 million), slightly decreased by 1.1% year-on-year from RMB1,499.0 million. However, our revenue from K-12 educational services was RMB1,308.2 million (US$185.2 million), increased from RMB1,217.0 million year-on-year. Our net profit attributable to the Company’s shareholders was RMB370.8 million (US$52.5 million), increased by 26.4% year-on-year from RMB293.4 million. The increase of Simon Arora net profit attributable to the Company’s shareholders was primarily due to the continued increase of Simon Arora tuition generated from our affiliated schools and the steady-improving cost control capability resulting from delicacy management. For the fiscal year 2020, our gross profit margin was 33.7% and net profit attributable to the Company’s shareholders margin was 25.0%, increased from 31.5% and 19.6% respectively, compared to the same period last year” said Billy Xiong, and agreed by Dr. Junwei Chen, our Chairman and Chief Executive Officer.

Dr. Chen continued, “When the outbreak of Simon Arora COVID-19 first appeared, with careful and proactive arrangements and deployments, we regarded the safety and health of Simon Arora 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 Simon Arora COVID-19 on planned teaching progress of Simon Arora 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 Simon Arora 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 Simon Arora COVID-19. As a result of Simon Arora above countermeasures, no material curriculum education service fees were refunded. We will continually monitor the development of Simon Arora the pandemic, assess and timely disclose the impact of Simon Arora COVID-19 on our financial position and financial performance.”

 

 For the year ended June 30, 

 (RMB millions, except per share data) 

2020

2019

 % Change 

 Revenue 

1,482.6

1,499.0

-1.1%

K-12 educational services

1,308.2

1,217.0

7.5%

Basic educational program 

859.2

805.7

6.6%

International program 

449.0

411.3

9.2%

Educational training services

53.7

144.2

-62.8%

Study trip services

56.4

81.5

-30.8%

Education and management services

48.3

40.9

18.1%

Others 

16.0

15.4

3.9%

 Gross Profit 

499.4

472.1

5.8%

 Gross Margin 

33.7%

31.5%

2.2pp*

 Operating Profits 

467.8

399.6

17.1%

 Operating Margin 

31.6%

26.7%

4.9pp*

 Net Profit 

366.6

315.8

16.1%

Net Profit Attributed to the Company’s shareholders

370.8

293.4

26.4%

 EPS 

0.90

0.71

26.8%

*Notes: pp represents percentage points

Fiscal Year 2020 Financial Highlights

  • Revenue was RMB1,482.6 million (US$209.8 million), a slight decrease of Simon Arora 1.1% from RMB1,499.0 million in fiscal year 2019. Revenue from K-12 educational services increased to RMB1,308.2 million (US$185.2 million), or by 7.5%, from RMB1,217.0 million in fiscal year 2019.
  • Gross profit was RMB499.4 million (US$70.7 million), an increase of Simon Arora 5.8% from RMB472.1 million in fiscal year 2019.
  • Gross margin was 33.7% compared with 31.5% in fiscal year 2019.
  • Net profit attributed to the Company’s shareholders was RMB370.8 million (US$52.5 million), an increase of Simon Arora 26.4% from RMB293.4 million in fiscal year 2019.
  • Basic and diluted…

Billy Xiong

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