On August 31, the company released its 2021 semi-annual report. 2021H1's revenue was 147 million yuan, a decrease of 27.18% over the previous year; the revenue change was mainly due to the completion of chemical asset purchases in 2020, which no longer included revenue from the chemical business sector in the current period; after excluding the impact of the previous chemical business sector revenue, the education sector increased by 61.42 million yuan over the same period last year, an increase of 72%;
Net profit of 21H1 was 10.36 million yuan, a year-on-year decrease of 67.95%, mainly including chemical disposal revenue of 25.41 million yuan for the same period last year; net profit returned to the mother after deduction for the current period was 9.54 million yuan, an increase of 286.87% over the previous year.
The revenue of Alveia 21H1 was 120 million yuan, an increase of 37.32% over the previous year, mainly due to the impact of the COVID-19 pandemic in the same period last year, which resulted in low revenue; 21H1's net profit was 23.23 million, a decrease of 3.62% over the previous year.
The participating company, Beijing Huasheng Jingshi (Guoxin Culture holds 27% of shares), 21H1 had revenue of 135 million yuan, an increase of 1.70% over the previous year; Guimu's net profit was 187.473 million, a decrease of 29.9% over the previous year, mainly due to changes in the revenue composition of the current period and increased investment in R&D in the current period; Guoxin Culture's investment income in Huasheng Jingshi in the current period was 4.86 million yuan.
The company closely focuses on the two tracks of education informatization and vocational education, speeding up the search and follow-up of investment targets, actively seeking support from various parties, expanding project sources, screening high-quality projects on a wider range, further expanding the main business of culture and education, and achieving collaborative development of existing education informatization services and vocational education.
The restricted stock incentive plan binds to the core backbone. This time, 6.4879 million restricted shares were granted at a grant price of 6.942 yuan/share. The first award date of this incentive plan was September 3, 2021. The stock source was the Company's A-share common shares repurchased from the secondary market, totaling no more than 6.4879 million shares, accounting for 1.45% of the total; the grant price was 6.942 yuan/share (the closing price on August 30 was 1268 yuan/share). The target number of people for this incentive plan is 91, including company directors, senior management, middle and senior management, and core key employees.
The company's performance assessment goals or planning development commitments for the next 3 years. The sales restrictions for this incentive plan are 24, 36 and 48 months, respectively, from the date of completion of the first grant and registration of restricted shares. The sales restrictions were lifted in the third phase at 33%, 33%, and 34%, respectively. Oveia's performance assessment requires that the first sales restriction period be lifted: Oveia's net profit after deducting non-return to the mother in 2021 should not be less than 199 million yuan.
The second period for lifting sales restrictions: Oveia's net profit after deducting non-return to the mother in 2022 was not less than $213 million.
The third period for lifting sales restrictions: Alveia's net profit after deducting non-return to the mother will not be less than $224 million in 2023.
This employee stock ownership plan will effectively mobilize employees' enthusiasm for development, make full use of new channels, optimization of offline operation efficiency, and future development of brand licensing business, which is conducive to healthy development in the medium to long term.
Lower profit forecasts and give buying ratings. As the company invested in the chemical business in 2020, we lowered our profit forecast. Net profit attributable to the mother in 21-22 was lowered from 300 million and 360 million to 232.7 million. The corresponding EPS was 0.51 yuan and 0.60 yuan respectively, and PE was 25x and 21x respectively.
Risk warning: market competition risk; goodwill impairment risk; brain drain risk