{"id":389983,"date":"2020-11-30T16:33:34","date_gmt":"2020-11-30T21:33:34","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=389983"},"modified":"2020-11-30T16:33:34","modified_gmt":"2020-11-30T21:33:34","slug":"hailiang-education-group-inc-announces-financial-results-for-the-first-quarter-of-fiscal-year-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/hailiang-education-group-inc-announces-financial-results-for-the-first-quarter-of-fiscal-year-2021\/","title":{"rendered":"Hailiang Education Group Inc. Announces Financial Results for the First Quarter of Fiscal Year 2021"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n HANGZHOU, China<\/span>, Nov. 30, 2020<\/span> \/PRNewswire\/ — Hailiang Education Group Inc. (Nasdaq:\u00a0HLG) (“Hailiang Education”, the “Company” or “we”),\u00a0an education and management service provider of primary, middle, and high schools in China<\/span>, announced its financial results for the first quarter of fiscal year 2021 ended\u00a0September 30, 2020.<\/p>\n

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\n \"(PRNewsfoto\/Hailiang
\n <\/a>\n <\/p>\n<\/p><\/div>\n

“Hailiang Education has achieved remarkable results through the continual improvement of brand awareness and the development of innovation strategies, albeit the COVID-19 pandemic still has temporary impact on part of our business. We will continue to build a one-stop comprehensive service platform for primary, middle and high school education, in order to provide students with high-quality education and management services and to vigorously develop additional education services, such as online and onsite educational training services, study trip services and overseas study services. In the first quarter of fiscal year 2021, we recorded revenue of RMB298.5 million<\/span> (US$44.0 million<\/span>), increased by 29.8% from RMB229.9 million<\/span> for the same period of last year. We generated revenue of RMB263.1 million<\/span> (US$38.8 Million<\/span>) from primary, middle and high school educational services, an increase of 36.1% compared to the same period of last year. The net profit attributable to the Company’s shareholders was RMB26.9 million<\/span> (US$4.0 million<\/span>), compared with the net loss attributable to the Company’s shareholders of RMB15.3 million<\/span> for the same period of last year. The net profit attributable to the Company’s shareholders margin was 9.0%, and the net loss attributable to the Company’s shareholders margin was 6.7% for the same period of last year, demonstrating Hailiang Education’s significant profitability,” said Dr.\u00a0Junwei Chen, the Chairman and Chief Executive Officer of Hailiang Education.<\/p>\n

Dr. Chen said, “The first quarter of fiscal year 2021 was a critical period for the new school year enrollment. As of September 30, 2020<\/span>, the number of students enrolled at our affiliated schools reached 26,869, an increase of about 10.8% year-on-year. The total student enrollment of 72,846 in our affiliated and managed schools increased by approximately 9.5% year-on-year. We added three affiliated schools to our school network, namely Lanzhou Hailiang Experimental School, Hailiang Overseas Chinese School, and Wuhu Hailiang Experimental School, all of which started their first year of enrollment for the 2020-2021 school year in the first quarter of fiscal year 2021. As of September 30, 2020<\/span>, there were 568, 828 and 409 students enrolled in these three schools, respectively. The Company also acquired Jinhua Hailiang Foreign Language School (“JHFL”) and completed the transfer of sponsorship in September 2020<\/span>. As of September 30, 2020<\/span>, the number of students enrolled in JHFL reached 739, an increase of 164 from the same period of last year. The increase in the number of students enrolled in our schools has proved that the Company’s precautionary measures during the COVID-19 have been effective and recognized by the public. The Company has successfully seized the opportunity to develop amid the negative impact of the COVID-19 on the education industry and the public’s philosophy of education. In addition, as of September 30, 2020<\/span>, the number of students enrolled in the international education program at our affiliated schools reached 5,262, an increase of approximately 7.6% year-on-year. We managed to maintain such growth momentum despite the uncertainty of the global economy and the pandemic, thanks to the Company’s diversified curriculum business, especially our focus on creating educational products that integrate high-quality international education resources and China’s<\/span> education entrance system. Our growth should also be attributed to the Company’s powerful insights into market opportunities and our ability to resist systemic risks when making important decisions.”<\/p>\n

Dr. Chen stated, “In the post-pandemic era, online communications and interactions will change people’s daily life, learning behaviors and business patterns. Following the rapid development of the Company’s online education technology and curriculums, driven by the COVID-19 pandemic in early 2020, the Company has officially launched online educational training services of all subjects for students at all stages in the summer this year. The education quality has been widely recognized by our students and their parents. In the first quarter of fiscal year 2021, our online educational training business has served 10,415 student attendances. As of November 15, 2020<\/span>, a total of 28,424 student\u00a0attendances\u00a0took our online courses during fiscal year 2021, providing sufficient driving force for the Company’s business development and innovation. On-site educational training services are also in a steady state of development. We expect that on-site training centers will be opened in all places where Hailiang Education schools are located in the future. In addition, the application of educational technology in schools also shows a trend of simultaneous innovation. The Company hopes to promote the high-quality development of education by tapping into the power of technology, and is committed to improving management efficiency and teaching and learning quality by creating “Smart Campus” and “Smart Classrooms”. Currently, we have formed an education research and development team with rich experience in education and IT application development. We are cooperating with top-tier universities and industry leaders in China<\/span> to create technology and products, and will continue to upgrade “Smart Campus” and “Smart Classrooms” with various application scenarios. At present, more than 50 educational technology systems are used for various application scenarios to further standardize and intelligentize our management and teaching activities. As the brain of the entire Company, the big data center has strong storage and computing capabilities. It can provide sufficient data support for our management and decision-making, and realize a series of big data application scenarios, such as data integration and development management, by providing uniform data standards and services to our schools. For example, the big data center can record students’ grades, moral development, mental health and other dimensions of information, forming a complete “student growth profile” during a student’s entire school period. At the same time, we are actively accelerating the upgrade and launch of various new teaching system products. For example, Hailiang Star Classroom is now officially piloting in Hailiang Foreign Language School, Tianma Experimental School and Hailiang Experimental High School. Teachers have access to relevant lesson resources online and prepare online courseware to teach in class. This new system has saved teachers’ time for lesson preparation and has improved teaching efficiency in class. The overall usage coverage of the above three schools in the first month of the 2020-2021 school year has exceeded 40%. Teachers and students can also use the iClass system in classroom scenes. Currently, teachers can enhance interactions with students through iPads. The teaching resources will be gradually improved in the future, bringing in features such as AR electronic experiment display and online playback of course materials, and applications in students’ after-class scenes will be actively explored.”<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n \n <\/td>\n\n

\n
\n \u00a0For the Quarter Ended September 30,<\/b>\u00a0<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u00a0(RMB millions, except per share data)\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2020<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2019<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n \u00a0% Change\u00a0<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0Revenue\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 298.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 229.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 29.8%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Primary, middle and high school educational
services<\/span>\n <\/p>\n<\/td>\n

\n

\n 263.1<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 193.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 36.1%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Basic educational program\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 179.4<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 134.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 33.9%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n International program\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 83.7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 59.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 41.1%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Educational training services<\/span>\n <\/p>\n<\/td>\n

\n

\n 19.8<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 9.0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 120.0%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Study trip services<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.8<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 21.2<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n -91.5%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Education and management services<\/span>\n <\/p>\n<\/td>\n

\n

\n 11.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 4.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 164.4%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Others\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n –<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0Gross Profit\/(loss)\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 44.5<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (3.5)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n NM<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0Gross Profit\/(loss) Margin\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 14.9%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n -1.5%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n NM <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0Operating Profit\/(loss)\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 38.6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (10.8)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n NM<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0Operating Profit\/(loss) Margin\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 12.9%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n -4.7%<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n NM<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0Net Profit\/(loss)\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 25.3<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (19.4)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n NM<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n Net Profit\/(loss) Attributable to the Company’s Shareholders<\/span>\n <\/p>\n<\/td>\n

\n

\n 26.9<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (15.3)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n NM<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0Earnings\/(loss) Per Share\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.07<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (0.04)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n NM<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

\n First Quarter of Fiscal Year 2021 Financial Highlights<\/b>\n <\/p>\n