{"id":454250,"date":"2021-03-09T16:33:22","date_gmt":"2021-03-09T21:33:22","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=454250"},"modified":"2021-03-09T16:33:22","modified_gmt":"2021-03-09T21:33:22","slug":"hailiang-education-group-inc-announces-financial-results-for-the-second-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-second-quarter-of-fiscal-year-2021\/","title":{"rendered":"Hailiang Education Group Inc. Announces Financial Results for the Second 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>, March 9, 2021<\/span> \/PRNewswire\/ — Hailiang Education Group Inc. (Nasdaq:\u00a0HLG<\/span>) (“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 second quarter and first half of fiscal year 2021 ended\u00a0December 31, 2020.<\/p>\n

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

“We are very pleased to see that the Company’s business has shown strong resilience during the COVID-19 pandemic. With the stabilization of the COVID-19 pandemic in China<\/span>, the Company’s business has gradually returned to normal and achieved encouraging results for the reporting periods. In the first half of fiscal year 2021, we recorded revenue of RMB937.0 million<\/span> (US$143.6 million<\/span>), an increase of 25.0% from RMB749.4 million<\/span> for the same period of last year. The net profit attributable to the Company’s shareholders was RMB268.0 million<\/span> (US$41.1 million<\/span>), an increase of 31.3% from RMB204.1 million<\/span> for the same period of last year,” said Dr.\u00a0Junwei Chen, the Chairman and Chief Executive Officer of Hailiang Education. “<\/span>As we improve the quality of our primary, middle and high school educational\u00a0services and ancillary educational\u00a0services, we are confident that, as one of the market leader, we will gain more market share and drive long-term profit growth for shareholders in the future.”<\/p>\n

“Benefiting from the effective control of COVID-19 and the gradual recovery of economy in China<\/span>, as well as the flexible measures adopted by the Company and the application of more educational technology products, the Company’s growth momentum in the first half of fiscal 2021 was remarkable. Our revenue increased by 25.0% compared to the same period of last year. In the first half of fiscal year 2021, the gross margin was 38.6%, an increase of 6.5 percentage points compared to the same period of last year. The increase in gross margin was mainly due to the continued increase in average tuition and student enrollments, a decrease in the proportion of revenue generated from low margin business such as study trip services, and the deferral in recognition of tuition earned in fiscal year 2020 to fiscal year 2021 due to the impact of COVID-19,”\u00a0<\/span>said Ms.\u00a0Deborah Lee, the Chief Financial Officer of Hailiang Education. “In<\/span> the future, we believe that the Company’s gross margin will remain at a relatively stable level with further improvement of school utilization rate, the opening of new schools, and the Company’s continuous investment in educational technology applications.”<\/p>\n

Dr. Chen continued, “Looking forward, Hailiang Education will continue to adhere to four strategic paths. First, we will drive endogenous growth through the rapid improvement of school utilization rate and the steady rise in tuition with the help of the Company’s brand that has been gradually established and expanded in East China and across the country. Second, we will continue our efforts to seek suitable acquisition opportunities in China<\/span> and overseas countries to achieve external expansion. Third, we will focus on the development of ancillary educational services, especially educational training\u00a0business as a new direction to drive our growth. Last, we will continue to vigorously promote the two strategic projects announced earlier this fiscal year — “The Project of Invigorating Education with Talents” and “The Project of Revitalizing Education through Technology, to solve the two bottlenecks of “talents supply” and “Resource Replication” during the rapid, high-quality and standardized remote expansion of schools.”<\/span><\/p>\n

Dr. Chen concluded, “We are very excited about Hailiang Education’s development opportunities in the near future along with the gradual economy recovery and stable COVID-19 control in China<\/span>, although the impact of COVID-19 is still ongoing and recovery of the global economy remains uncertain.\u00a0We are confident that our abundant talent pool and innovative education technology applications will facilitate Hailiang Education’s rapid expansion in China<\/span> and overseas countries with our promotion of the two strategic projects of ‘Invigorating Education with Talents’ and ‘Revitalizing Education through Technology’. At the same time, we also see opportunities for educational training of ‘online merging offline integration’. We expect educational training to become a new revenue source by utilizing the Company’s nationwide school network. We expect that the Company’s healthy debt-to-asset ratio and sufficient cash flow will support the implementation of these growth strategies for long-term growth and success.”<\/p>\n

\n Second Quarter of Fiscal Year 2021 Financial and Operational Highlights<\/b>\n <\/p>\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 For the Quarter Ended December 31,<\/b>\u00a0<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n \u00a0<\/i>(RMB millions, except per share data)\u00a0\u00a0<\/i><\/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<\/tr>\n

\n

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

\n

\n 638.5<\/span>\n <\/p>\n<\/td>\n

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

\n 519.5<\/span>\n <\/p>\n<\/td>\n

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

\n 22.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 561.5<\/span>\n <\/p>\n<\/td>\n

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

\n 445.5<\/span>\n <\/p>\n<\/td>\n

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

\n 26.0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 385.2<\/span>\n <\/p>\n<\/td>\n

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

\n 292.1<\/span>\n <\/p>\n<\/td>\n

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

\n 31.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 176.3<\/span>\n <\/p>\n<\/td>\n

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

\n 153.4<\/span>\n <\/p>\n<\/td>\n

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

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

\n

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

\n

\n 39.6<\/span>\n <\/p>\n<\/td>\n

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

\n 34.4<\/span>\n <\/p>\n<\/td>\n

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

\n 15.1%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 9.3<\/span>\n <\/p>\n<\/td>\n

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

\n 21.9<\/span>\n <\/p>\n<\/td>\n

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

\n -57.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

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

\n 11.2<\/span>\n <\/p>\n<\/td>\n

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

\n 89.3%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 6.9<\/span>\n <\/p>\n<\/td>\n

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

\n 6.5<\/span>\n <\/p>\n<\/td>\n

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

\n 6.2%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Gross Profit<\/span>\n <\/p>\n<\/td>\n

\n

\n 316.9<\/span>\n <\/p>\n<\/td>\n

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

\n 244.0<\/span>\n <\/p>\n<\/td>\n

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

\n 29.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Gross Margin<\/span>\n <\/p>\n<\/td>\n

\n

\n 49.6%<\/span>\n <\/p>\n<\/td>\n

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

\n 47.0%<\/span>\n <\/p>\n<\/td>\n

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

\n 2.6pp*<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Profit<\/span>\n <\/p>\n<\/td>\n

\n

\n 298.2<\/span>\n <\/p>\n<\/td>\n

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

\n 253.8<\/span>\n <\/p>\n<\/td>\n

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

\n 17.5%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Operating Margin\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 46.7%<\/span>\n <\/p>\n<\/td>\n

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

\n 48.8%<\/span>\n <\/p>\n<\/td>\n

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

\n -2.1pp*<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net Profit\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 245.6<\/span>\n <\/p>\n<\/td>\n

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

\n 219.2<\/span>\n <\/p>\n<\/td>\n

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

\n 12.0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n 241.1<\/span>\n <\/p>\n<\/td>\n

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

\n 219.4<\/span>\n <\/p>\n<\/td>\n

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

\n 9.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings Per Share\u00a0\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n 0.58<\/span>\n <\/p>\n<\/td>\n

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

\n 0.53<\/span>\n <\/p>\n<\/td>\n

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

\n 9.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

*Notes: pp represents percentage points<\/p>\n