Dow Jones received a payment from EQS/DGAP to publish this press release.
EQS-News / 31/08/2017 / 21:20 UTC+8
*Immediate Release 31 August 2017*
(Stock Code: 2001.HK)
*Strong Growth in 2017 Interim Results of China New Higher Education
Comprehensive Income Increased by 34.4% Substantially
Core Net Profit Increased by 52.3% Sharply
Interim Dividend per Share was RMB0.021*
*Financial and Operating Highlights*
Interim results for the six months ended 30 June 2017:
Comprehensive income amounted to RMB265.7 million, representing
an increase of 34.4% as compared to the same period of 2016
Profit from continuing operations of RMB110.2 million,
representing an increase of 38.1% as compared to the same period
of 2016
Gross profit margin and net profit margin were 57.1% and 51.9%
respectively
Core net profit (excluding the listing expense) amounted to
RMB127.8 million, representing an increase of 52.3% as compared
to the same period of 2016
The number of students enrolled was 46,460 (including 33,462
students from two universities operated by the Group and 12,998
students from two universities invested by the Group),
representing a significant increase of 56.3% as compared to the
same period of 2016
(31 August 2017, Hong Kong) *China New Higher Education Group Limited*
("China New Higher Education", together with its subsidiaries, "the Group",
stock code: 2001.HK) is pleased to announce the unaudited consolidated
interim results for the six months ended 30 June 2017 ("the Review Period").
During the Review Period, due to the adjustment of tuition fee of the Yunnan
School, and the significant increase in the number of students enrolled in
the Yunnan School and the Guizhou School, the revenue of the Group amounted
to RMB265.7 million, representing an increase of 34.4% as compared to the
same period of 2016. The Group recorded profit from operations of
RMB110.2million, representing an increase of 38.1% as compared to the same
period of 2016. Gross profit margin increased from 56.3% for the same period
of the previous year to 57.1% for the current period. Core net profit
(excluding the listing expense) amounted to RMB127.8 million, representing
an increase of 52.3% as compared to the same period of 2016. The Group
recorded other income and gains amounting to RMB53.2 million, representing a
remarkable increase of 174.2% as compared to 2016.
As of 30 June 2017, the total number of students enrolled of the Group was
46,460, representing a significant increase of 56.3% as compared to the same
period of 2016. Currently, the Group is in possession of four universities,
including the Yunnan Technology and Business University, the Guizhou
Technology and Business Institute, the Harbin Huade University and Science
and Technology College of Hubei University. The Northwest Technology and
Business Institute, which is under construction in Lanzhou, Gansu, is
expected to commence operation in 2019 and to have its first batch of
college students enrolled in September the same year, with an enrollment
capacity of 15,000 college students. In addition, the Yunnan school and
Guizhou School are expected to be expanded in the future by utilizing
substantial areas of reserved land. The Yunnan school has approved to expand
the size of school students to 44,000 during the 13th Five-Year Plan by the
Provincial Education Department, representing a significant increase of 125%
as compared to the end of 2016, which will exert positive influence on the
future increase in the number of students of the Group.
The Group has always been maintaining the tuition rates at competitive
levels, in which the tuition fee has a bigger growing room, with better
brand power and reputation, in 2017/2018 academic year, the tuition fee of
Guizhou School, Northeast school and Huazhong School, has been adjusted to a
higher level.
The Group intends to further optimize revenue and other income sources.
Beneficial to the recognition and support from the educational head
department, affiliated schools of the Group were approved to expand school
scale, in which the number of students would have a significant ground for
providing a guarantee to the expansion in other revenue sources.
Looking forward, the Group will expand the school network and increase the
market penetration rate, as well as increase the market share in the private
education industry in China. The Group will intend to expand into western
and central China, as the focus merger and acquisition. There exists
significant growth potential because the higher education enrollment rates
in these regions are lower than the national average enrollment rates, and
leverage its scalable business model to optimize the operations of the
acquired or invested schools and replicate the value-added service revenue
model of the Yunnan School to increase financial returns.
Mr. Li Xiaoxuan, the Chairman of China New Higher Education, said, "With the
continuous development of China's economy and the increasing demands for
talents with practical experience and applicable skills, there exists
substantial market potential for the development of domestic private higher
education. In the future, we will adhere to the education aim of "Help
Student to Succeed" and continue to push ahead the long-term development of
the Group by exercising management and control over strategy, budget and
operation and adopting a humanistic, informational and systematic management
method so as to replicate and promote its scalable business model. It will
also strive to establish itself into a leading university focused on applied
sciences and develop the most respected education group corporation, so as
to enhance the Group's comprehensive strength and increase market share in
the industry, creating greater value and satisfactory returns for the
shareholders."
-End-
*About China New Higher Education Group Limited*
China New Higher Education is a leading private formal higher education
group in China with nearly 20 years of education industry experience,
specializing in providing higher education which focuses on applied
sciences. The Group endeavors to help each student maximize his or her
potential and live his or her life to the fullest. The Group's fundamental
educational philosophy is mainly composed of two integral parts: (i) to
nurture the growth of students, and provide education tailored to each
student's individual needs and circumstances; and (ii) to equip students
with practical and readily applicable skills that meet market demand. The
Group currently operates and invests in four schools, namely the Yunnan
Technology and Business University, the Guizhou Technology and Business
Institute, the Science and Technology College of Hubei Minzu University and
the Harbin Huade University in Southwestern, Central and Northeastern China,
and the construction of Northwest School will commence in the second half of
2017.
The Group provides high quality higher education in a wide selection of
fields in applied sciences. Its courses are designed to equip students with
practical and readily applicable skills, helping to prepare them for job
market. It achieved industry-leading graduate employment rates, with over
98% of its graduates from 2013 to 2015 by the end of their year of
graduation, according to Frost & Sullivan. Furthermore, the Group is one of
the fast-growing higher education groups focusing on applied sciences in
China in terms of the number of students enrolled at the end of the past
three school years, with its overall student enrolment growing from 29,716
in 2015/2016 academic year to 46,460 in 2016/2017 academic year, including
total 33,462 students in Yunnan, and Guizhou school which the Group operated
and total 12,998 students in Central China and Northeast school which the
Group invested.
The press release is distributed by *Wonderful Sky Financial Group Limited*
on behalf of *China New Higher Education Group Limited*.
For further information, please contact:
*Wonderful Sky Financial Group Limited*
Jacqueline Wong / Alice Wong /Cici Chen
Tel: (852) 3970 2177 / (852) 3970 2238/ (852) 3641 1331
Email: po@wsfg.hk / alicewong@wsfg.hk /cicichenc@wsfg.hk
Fax: (852) 2565 1638
Document: http://n.eqs.com/c/fncls.ssp?u=AEVOAUTRTP [1]
Document title: Strong Growth in 2017 Interim Results of China New Higher
Education Comprehensive Income Increased by 34.4% Substantially Core Net
Profit Increased by 52.3% Sharply Interim Dividend per Share was RMB0.021
31/08/2017 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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(END) Dow Jones Newswires
August 31, 2017 09:20 ET (13:20 GMT)
