(Image source: Visual China)

Recently, Chengshi Wai Education released the interim results report for the six months ended February 29, 2024.

According to the interim report, Chengshiwai Education's revenue for the first half of this fiscal year was 520 million yuan, an increase of 27.7% over 40,800 yuan in the same period last year. Cheng Shiwai Education said that the increase in total revenue during the reporting period was mainly due to increased revenue from tuition fees and revenue from school cafeteria operating expenses.

According to reports, during the reporting period, Chengshiwai Education's revenue from tuition fees increased 26.6% year over year to 422 million yuan, and revenue from school cafeteria operating expenses increased 34.3% year over year to 42.2 million yuan. However, the two revenue increases were mainly due to the increase in the number of students enrolled in the 2021-2023 academic year of Chengshi Wai Education. During the reporting period, the total number of students enrolled in Chengshi Foreign Education increased from 27,200 in the same period last year to 30,300.

According to financial reports, the sales cost of Chengshiwai Education during the reporting period was 341 million yuan, an increase of 27.5% over the previous year. Cheng Shiwai Education said that the increase was mainly due to an increase in employee costs due to an increase in the number of teachers enrolled in existing schools; an increase in direct material costs for cafeteria operation and property management service fees; an increase in the number of students enrolled in new schools over the past few years, and the cost of student scholarships has also increased.

In terms of gross profit, during the reporting period, the gross profit of Chengshi Education was 179 million yuan, an increase of 28.1% over the previous year, while gross margin remained the same as the same period last year. The increase in gross profit is mainly due to an increase in average tuition fees and the number of students.

In terms of expenses, the sales and distribution expenses and administrative expenses of Chengshi Education increased by 155.64% year-on-year and decreased by 10.12%, respectively, in the first half of the fiscal year. Other expenses and other losses increased more than sixfold year over year.

In the first half of the fiscal year, the profit accrued to the owners of Chengshiwai Education Company was RMB 3160.2 million, up 34.5% year on year; adjusted net profit was RMB 49.018 million, up 29.5% year on year; profit per share was 0.01 yuan, and the interim dividend was HK 0.55 cents per share.

Regarding future development, Chengshiwai Education stated in its financial report that it will adopt the following strategies in the future: cooperate with third party business partners to establish a new high school (mainly according to the asset-light model); increase the usage rate and tuition fees of the existing school network; establish international education courses within the school and provide consulting services for studying abroad; and provide non-academic education services.