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EQS-News / 24/04/2019 / 20:18 UTC+8
*Wisdom Education International Holdings Company Limited
(Stock code: 6068.HK)*
*Announces 2019 Interim Results*
*Revenue Surged by 41.1% YoY to RMB835.6 Million
Core Net Profit Increased by 33.0% YoY to RMB216.4 Million
Outline Development Plan for Greater Bay Area to Drive Company's Growth*
*Financial Highlights*
*RMB'000* *For the six* *months ended* *28 February*
*2019* *2018* *Change*
Revenue *835,553* *591,995* +41.1%
Gross profit *378,747* *261,785* +44.7%
Profit for the period *189,462* *145,620* +30.1%
Core net profit *216,434* *162,701* +33.0%
Earnings per share *9.0* *7.0* +28.6%
(RMB cents)
Interim dividend (HKD *4.9* *4.0* -------------
cents)
_*Core net profit is defined as the profit for the period of the Group after
adjusting for those items which are not indicative of the Group's operating
performance._
(Hong Kong - 24 April 2019) *Wisdom Education International Holdings Company
Limited* ("Wisdom Education" or the "Company" together with its
subsidiaries, the "Group", stock code: 6068.HK) is pleased to announce the
interim results for the six months ended 28 February 2019 (the "Period").
*Financial indicators show steady growth *
During the Period, the Group's total student enrolment increased by 32.2%
year-on-year ("YoY") to 54,420, primarily due to the significant increase in
student enrolment in Dongguan Guangzheng Preparatory School and Huizhou
Guangzheng Preparatory School, as well as the consolidation of Weifang
Weizhou School and Zhang Pu Longcheng Schools. Total revenue increased by
41.1% YoY to RMB835.6 million (1H2018: RMB592.0 million) on the growth in
student enrolment as well as the increase in average tuition and boarding
fees.
Overall gross profit rose from RMB261.8 million to RMB378.7 million,
representing a growth of 44.7% YoY, while gross profit margin increased from
44.2% during the same period last year to 45.3%. Core net profit surged by
33.0% YoY to RMB216.4 million (1H2018: RMB162.7 million).
Earnings per share amounted to RMB9.0 cents (1H2018: RMB7.0 cents). The
Board of Directors recommends an interim dividend of HKD4.9 cents per share
(1H2018: HKD4.0 cents).
For the six months ended 28 February 2019, revenue from tuition and boarding
fees increased by 38.7%, from RMB417.4 million to RMB579.0 million,
contributing 69.3% of total revenue. The average tuition and boarding fees
per student before taking into consideration of the consolidation of Zhang
Pu Longcheng Schools increased by 8.9% to RMB 11,042 primarily due to the
increase in tuition and boarding fees for the new students in Dongguan
Guangming Secondary and Primary Schools and Dongguan Guangzheng Preparatory
School. The increase in overall student enrolment also drove revenue from
ancillary services to increase by 46.9% to RMB256.5 million, accounting for
30.7% of the total revenue.
*Uphold expansion strategy of building greenfield schools and leverage on
brand equity, maximum capacity to reach nearly 130,000*
With a proven track record in providing all-rounded, quality private K-12
education services over the years, the Group will continue to establish more
greenfield schools and expand its business network by leveraging on its
excellent brand equity and outstanding teaching quality.
In March 2019, the Group obtained an approval from the Ministry of Education
of Shunde District, Foshan for its plan to set up a private not-for-profit
primary and secondary school for grade 1 to grade 12 students on a total
land area of approximately 191,000 square meters. The maximum capacity of
the school is expected to reach 9,210 students.
In addition, the Group is actively building a new school in Yunfu, Guangdong
Province. The school will be built in phases and is expected to comprise
primary, middle and high school sections. It is expected that the first
phase of the boarding school will commence operation from the 2019/2020
school year with a maximum capacity of 10,680 students.
The Group has also entered into cooperation agreements with the local
governments of Jiangmen and Chaozhou in Guangdong province respectively, and
each of them has agreed to allocate a parcel of land to the Group for the
proposed establishment of a primary and secondary boarding school. The
maximum capacity of the two schools is expected to be 7,500 students and
8,000 students respectively. The Group has also signed framework agreements
with the local governments of Guangzhou and Zhaoqing in Guangdong province
respectively, in respect of the proposed development of a boarding school in
each of the two cities.
During the Period, total student capacity of the Group increased from 49,804
to 63,000. Based on the expansion plan of our existing schools, total
capacity of the Group is expected to increase to a maximum of 93,980
students. Taking into account the new schools under construction or
planning, maximum capacity is expected to increase further to 129,370
students, which gives enormous room for organic growth.
*To benefit from Greater Bay Area development plan, capture industry
opportunities *
On 18 February 2019, the Central Government of China issued the Outline
Development Plan for the Greater Bay Area, with an aim to further develop
nine Guangdong province cities and the two administrative regions of Macao
and Hong Kong into a world-class city cluster and an international hub for
technology and innovation, through deepening cooperation amongst Guangdong,
Hong Kong and Macao, facilitating in-depth integration within the region and
promoting coordinated regional economic development. Under such national
strategic development, the Greater Bay Area is expected to see robust
economic growth, laying a solid foundation for the Group's future
development.
Apart from our existing schools in Dongguan and Huizhou, we have entered
into cooperation or framework agreements with the local governments of
Foshan, Jiangmen, Guangzhou and Zhaoqing, respectively, regarding the
proposed establishment of a private boarding school in each of these cities.
The Group has, therefore, already covered 6 out of 9 Guangdong cities of the
Greater Bay Area, and plans to tap into all Guangdong cities of the region.
In March 2019, the Group entered into a strategic cooperation agreement with
Guangdong Huiyin Haide Equity Investment Fund Management Company Limited
(??????????????????) ("Huiyin Haide") under large-scale, state-owned asset
manager Guangzhou Industrial Investment Fund Management Co. Ltd
(??????????????) ("Guangzhou Fund"), in relation to the establishment of an
education industry fund primarily for the investment of schools in the
Greater Bay Area, with a target size of investment of approximately RMB2.5
billion.
Through the establishment of the education industry fund, the Group will be
able to enjoy more convenience and flexibility in identifying or developing
schools in the Greater Bay Area. This could also further expand the Group's
financing channels and lower its finance cost. The cooperation has laid a
solid foundation for the Group's school network expansion, and marked a
remarkable step in our long-term development.
*The Board of Directors of Wisdom Education *commented, "Chapter 8 of the
Outline Development Plan has set out the objectives of establishing an
education and talent hub in the Greater Bay Area, promoting education
cooperation and attracting talent to the nine Guangdong cities. We find the
Outline Development Plan encouraging as it has provided solid support to our
future growth. We are in view that with vibrant economic development and an
increasingly convenient transport network, there will be an inflow of talent
together with their children to the Greater Bay Area, thus driving up demand
for premium private K-12 education in the region. In the future, the Group
will continue to dedicate itself into cultivating talents to contribute to
the country, and leverage on the favorable policies to achieve comprehensive
coverage in the area as well as new highs in our results."
*The Board of Directors of Wisdom Education *continued, "In February 2019,
the Central Government of China issued the plan for 'China's Education
Modernization 2035' (???????2035) and the 'Implementation Plan to Accelerate
the Modernization of Education (2018-2022)' (????????????? (2018-2022?)),
which proactively encourages social resources to set up schools to support
the sustainable and healthy development of private education. With our
proven track record in providing comprehensive premium K-12 education
services, Wisdom Education should be one of the key beneficiaries of these
policies. As education quality is fundamental to building brand equity and
business expansion, we will spare no effort in improving our teaching
quality and striving for betterment in order to bring greater return to our
stakeholders."
_- End -_
*About Wisdom Education International Holdings Company Limited*
Wisdom Education International Holdings Company Limited focuses on providing
high quality PRC curriculum programmes for primary and secondary school
students, with "serving the society with honesty and integrity through our
services and cultivating talent with a warm and loving heart" as its
educational objective. The Group is a leading premium primary and secondary
schools operator in South China, operating 11 premium private schools in 9
campuses, with 4 campuses located in Guangdong province, 1 in Liaoning
province, 2 in Shandong province, 1 in Sichuan province and 1 in Fujian
province, with a total enrolment of 54,420 students.
This press release is issued by DLK Advisory Limited on behalf of *Wisdom
Education International Holdings Company Limited.*
For enquiries, please contact:
*DLK Advisory *
Tel: +852 2857 7101
Fax: +852 2857 7103
Document: http://n.eqs.com/c/fncls.ssp?u=TWTFFUEELF [1]
Document title: [6068.HK Wisdom Edu] Wisdom Education Announces 2019 Interim
Results Revenue Surged by 41.1% YoY to RMB835.6 Million Core Net Profit
Increased by 33.0% YoY to RMB216.4 Million Outline Development Plan for
Greater Bay Area to Drive Company's Growth
24/04/2019 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
April 24, 2019 08:18 ET (12:18 GMT)
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