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Wisdom Education International Holdings Co Ltd

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EQS-News News vom 27.04.2017

[Wisdom Education] Announces 2017 Interim Results, Revenue Increased by 40.6% yoy to RMB498 Million, Core Net Profit for the Period Surged by 30.3% yoy to RMB121 Million


EQS-News / 27/04/2017 / 10:57 UTC+8

26 April 2017

/
Wisdom Education International Holdings Company Limited
(Stock code: 6068.HK)

Announces 2017 Interim Results

Revenue Increased by 40.6% yoy to RMB498 Million
Core Net Profit for the Period Surged by 30.3% yoy to RMB121 Million


Financial Highlights

RMB'000 For the six months ended 28 February For the six months ended 29 February Change
2017 2016
Revenue 498,142 354,283     +40.6%
Gross profit 230,861 166,184 +38.9%
Profit for the period 107,280 85,620 +25.3%
Core net profit 120,662 92,603 +30.3%
Earnings per share (RMB cents) 7.0 6.0 +16.7%
Interim dividend (HKD cents) 2.7 - -
       
 

(Hong Kong - 26 April 2017) 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 six months ended 28 February 2017 (the "Period").

Wisdom Education International Holdings Company Limited is one of the largest private education provider in South China, offering premium primary and secondary boarding schools. As at 1 September 2016, the Group has 6 premium private schools in 5 campuses, with a total enrolment of 31,788 students. Among which, 4 schools are located in Guangdong province, 1 school is located in Liaoning and 1 school is located in Shandong province, providing grade 1 to grade 12 PRC curriculum education as well as international programmes for high school students who aim to pursue overseas education.

During the Peiord, the Group has recorded a 40.6% year-on-year ("yoy") growth in revenue, reaching RMB498.1 million (2016: RMB354.3 million). The increase in revenue was brought by a rise in the number of overall student enrolment and the increase in the rates of tuition and boarding fees for certain schools. The overall gross profit of the Group surged from RMB166.2 million to RMB230.9 million, representing a growth of 38.9% yoy. When netting off all one-off and non-cash items, the core net profit surged by 30.3% from RMB92.6 million to RMB120.7 million.

Earnings per share amounted to RMB7.0 cents (2016: RMB6.0 cents). The Board of Directors recommends an interim dividend of HKD2.7 cents per share.

Student enrolment
As at 1 September 2016, there were 31,788 enrolled students, with an increase of 15.0% as compared to that of 1 September 2015. The increase in student number was mainly driven by the capacity expansion of Dongguan Guangzheng Preparatory School and Huizhou Guangzheng Preparatory School, as well as the commencement of Weifang Guangzheng Preparatory School serving primary and middle students from 1 September 2016. The enrolment was dominated by students from primary school and middle schools, representing 35.2% and 39.4% of the entire enrolment.

Geographical Presence
As at 28 February 2017, the Group operates 4 schools in the Guangdong province, namely Dongguan Guangming School, Dongguan Primary School, Dongguan Guanzheng Preparatory School and Huizhou Guangzheng Preparatory School. The Group also operates 1 school in Liaoning and 1 school in Shandong provinces, which are Panjin Guangzheng Preparatory School and Weifang Guangzheng Preparatory School respectively.

Tuition
For the 6 months ended 28 February 2017, the revenue from tuition and boarding fees surged by 22.2%, from RMB274.8 million to RMB335.8 million, contributing 68.5% of the total revenue. The average tuition and boarding fee per student increased by 6.3%, rising from RMB9,942 to RMB10,564. In particular, the tuition and boarding fees of high school category increased the most by 11.1% yoy to RMB11,177. The tuition and boarding fees of middle school and primary school categories increased by 6.3% yoy and 3.4% yoy to RMB10,572 and RMB9,426 respectively.

Prospects
In light of the growth in the number of middles class families and their respective disposal income, these can be the drivers for premium private fundamental education as parents are genuinely willing to invest in education in order to secure a bright future for their children. Premium private schools will be favored under such circumstance as they vernally pay more attention to developing all-rounded education curriculum for students, increasing the chance of entering top universities. In addition, the difficulty of enrolment and imbalance distribution of resources in quality public schools in China also encourages the growth of premium private schools.

Facing the promising industry prospect, Mr. Liu Xuebin, the Chairman of Wisdom Education, stated, "With the mission to serve the society with honesty and integrity through our services and cultivate talents with a warm and loving hearts, Wisdom Education has been providing well-rounded quality education to our students. Under the cancellation of the one-child policy and the unveiling two-child policy, it is expected that premium private fundamental education will be benefitted in the medium and long term and the student enrolment will increase rapidly."

Mr. Liu continued, "With such favorable operating environment, we will continue to strengthen our leading position in the Pearl River Delta economic zone through 1) expanding the capacity of our existing schools, namely Dongguan Guangming Preparatory School, Huizhou Guangzheng Preparatory School, Panjin Guangzheng Preparatory School and Weifang Guangzheng Preparatory School; 2) acquiring local private schools and 3) actively discussing with local government authorities namely Guangdong and Sichuan provinces to explore the possibility to establish new schools in the relevant cities. For acquisition of local private schools, we are currently negotiating with an independent third party to acquire a school that provides compulsory education for approximately 3,200 students in Guangdong province with a target to complete the acquisition by September 2017. In terms of establishing new schools, we currently have one school under construction in Guang'an, Sichuan province, with a maximum capacity of accommodating 9,280 students. The school is expected to commence operation in September, 2017. Two new schools are under development, in Yunfu, Guangdong and Ziyang, Sichuan respectively, both are expected to commence operation by September 2018. With our educational philosophy, we are confident that Wisdom Education can nurture elites for the society and generate fruitful results for shareholders."

- 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 talents with a warm and loving heart" as the educational objective. As measured by student enrolment as of 1 September 2015, the group is the largest private education group in South China operating premium primary and secondary schools. As of 1 September 2016, the group operated six premium private schools located in Guangdong, Liaoning and Shandong province, with a total enrolment of 31,788 students. For each of the 2013/2014, 2014/2015 and 2015/2016 school years, nearly 95% of the high school graduates were admitted to universities in China.

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=NTWXSULAYC
Document title: 6068_2017AR_Press Release_Eng_20170426

27/04/2017 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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