(Image source: Visual China)
On April 17, Bojun Education released a profit forecast, disclosing that as of February 29, 2024, the company is expected to record a net profit of 3.5 million yuan to 4.3 million yuan, compared with a loss of 7.8 million yuan in the same period last year, turning a loss into a profit over the previous year.
Facing the increase in net profit, Bojun Education stated in the announcement that it was mainly due to the comprehensive recording of the financial results of the two vocational schools after the acquisition was completed on August 31, 2023, which led to a sharp increase of about 400% compared to the six months ended February 28, 2023, and the one-time income from the Group's cancellation of the Group's debt of about RMB 19 million to Pengzhou Bojun School.
Furthermore, on April 15, Bojun Education issued a supplementary announcement explaining the further extension of the payment period relating to the sale of 51% of the shares in Pengzhou School and the conclusion of a second supplementary agreement.
According to the announcement, taking into account the development history and business plans of the school in Pengzhou, Bojun Education was established as a private primary school and middle school in 2018, and expanded operations and began providing high school education services in 2021; the number of student applicants is expected to reach about 2,000 in the 2023/2024 school year, and about 2,600 in the 2024/2025 school year to 2028/2029; from the 2023/2024 school year to the 2028/2029 school year, it is estimated that the annual tuition, tuition and other expenses of each student in the school year in Pengzhou will reach about RMB 53,000. The revenue of schools in Pengzhou is 105 million yuan to 137 million yuan, and it is estimated that the profit before tax of schools in Pengzhou is about 30 million yuan to 40 million yuan. The Board of Directors of Bojun Education believes that Penzhou schools are capable of settling the remaining investment funds in accordance with the new provisions. At the same time, the new provisions guarantee that Bojun Education will fully recover the remaining investment funds from Pengzhou School and Hongde Guanghua.
In addition, in addition to the second supplementary agreement, Bojun Education also considered the following plans to recover the remaining investment funds: enforcing guarantees and guarantees; legal action against Hongde Guanghua and Pengzhou schools; and entering into factoring arrangements with financial institutions.