Minsheng Education Core Net Profit Increases by 22.4% to RMB227.2 Million, with Core Net Profit Margin Achieving at 71.8%
August 27, 2018ACN Newswire
HONG KONG, Aug 27, 2018 - (ACN Newswire) - Minsheng Education Group Company Limited ("Minsheng Education" or the "Group," Stock code: 1569) has announced its unaudited interim results for the six months ended 30 June 2018 ("Period under Review").
- Revenue increased by 24.2% to RMB316.3 million (1H 2017: RMB254.6 million)
- Gross profit grew by 13.5% to RMB188.5 million (1H 2017: RMB166.1 million). Gross profit margin at 59.6% (1H 2017: 65.2%)
- Core net profit increased by 22.4% to RMB227.2 million (1H 2017: RMB185.6 million). Core net profit margin at 71.8% (1H 2017: 72.9%)
- Net profit increased by 37.2% to RMB221.0 million (1H 2017: RMB161.1 million)
- Basic earnings per share were RMB5.42 cents (1H 2017: RMB4.52 cents)
For the six months ended 30 June 2018, Minsheng Education recorded revenue of RMB316.3 million, increased by approximately 24.2% when compared to the same period last year. Gross profit rose by 13.5% to approximately RMB188.5 million, with gross profit margin at 59.6%. Net profit increased by 37.2% to approximately RMB221.0 million. The core net profit also recorded double digit growth at 22.4% to RMB227.2 million, while core net profit margin is at 71.8%. Basic earnings per share amounted to RMB5.42 cents. The Board does not recommend an interim dividend for the six months ended 30 June 2018.
Mr. Li Xuechun, Chairman of Minsheng Education, said, "Minsheng Education continues to focus on providing high-quality private formal higher education in China dedicated to nurturing professional talent. In addition, the Group attributes the relatively high initial graduate employment rates to the effectiveness of its education, which it believes will continue to elevate its brand recognition and attract talented students. The Group acquires schools that are of high quality with preference in undergraduate schools, such as Dianchi College of Yunnan University and City College of Hebei University of Technology. This will help the Group to cultivate high-level and high-quality professionals and create high-end employment and high employment rates. Moving forward, Minsheng Education will continue to uphold its China first-class standard in private higher education institutions, cultivate high-level and high-quality professionals, enhance the value of the Group and create higher returns for shareholders in the long run."
As at 30 June 2018, the Group had an aggregate of 43,344 students enrolled at the six schools that it owned and operated, primarily offers formal higher education, including formal undergraduate education and junior college education. The number of students increased at 33.3% year-on-year.
In addition, after the completion of the M&A projects announced by the Group, the number of students in Minsheng Education will reach more than 80,000.
For overseas market, apart from Beacon International College PTE. LTD. in Singapore and Hong Kong Nang Yan College of Higher Education Limited, the Group has further expanded its coverage to introduce advanced curricula and innovative teaching methods into its schools in the PRC, the Group has invested in Top Education Group Ltd. ("Top Education"), a private higher education provider in Australia offering accredited undergraduate and postgraduate award courses in business and law, it is aimed to bolster its education quality and reputation, and to offer more learning exchange opportunities for its students in the PRC.
Looking forward, the Group will expand its higher education school network and increase number of student through mergers and acquisitions and internal growth. It will explore the investment opportunities in independent ordinary higher education institutions; independent colleges with preliminary conditions to be converted to independent ordinary higher education institutions; higher vocational (junior) colleges with preliminary conditions to be upgraded to independent ordinary higher education institutions; and specialized secondary colleges, such as colleges having medical, arts-specialised and aviation specialised majors. As for internal growth, the Group will increase the student enrollment quota, add new programmes, provide more professional training programs in education, raise the tuition fees appropriately and provide the service items.
To expand the internationalised school operation, the Group will set up an international college in each school to carry out a variety of models of cooperation in operating schools such as 2 + 2 and 3 + 1 programs. Additionally, the Group will cooperate with famous international universities to carry out network teaching and at the same time to develop an intelligence campus, to gradually expand the teaching-by-network scope and to achieve effective information management and services.
About Minsheng Education Group Company Limited (Stock code: 1569)
Minsheng Education Group Company Limited has been listed on the Main Board of the Hong Kong Stock Exchange since 22 March 2018 and is one of the largest private providers of higher education in China. As at 30 June 2018, the Group operated six schools in the People's Republic of China (the "PRC"), namely Chongqing College of Humanities, Science and Technology, Pass College of Chongqing Technology and Business University, Chongqing Vocational College of Applied Technology, Inner Mongolia Fengzhou Vocational College (Qingcheng Branch), Chongqing Electronic Information College and Shouguang Bohai Experimental School. The Group primarily offers formal higher education, including formal undergraduate education and junior college education. For further details, please visit: http://www.minshengedu.com
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