(Image source: Visual China)
On April 28, Quantong Education released its 2023 Annual Report and 2024 First Quarter Report.
Continuing education business revenue increased year-on-year
According to the 2023 annual report, Quantong Education's revenue in 2023 was 644 million yuan, an increase of 6.44% compared with 605 million yuan in 2022. According to Quantong Education, the main reason for the increase in revenue is that the continuing education business implemented and confirmed revenue in 2023 for stock projects that were not completed due to objective reasons of travel restrictions after winning the bid in the previous year. This portion of the business revenue increased by 756.267 million year on year; due to local policies and increased market competition, the revenue of the home-school interaction upgrade business decreased by 164.431 million; due to changes in the internal structure and settlement methods of operators, etc., the revenue of the education information technology business decreased by 185.386 million year on year.
According to reports, measures to improve the quality and efficiency of Quantong Education achieved certain results last year. Costs were reduced by optimizing the personnel structure and comprehensively upgrading the internal management system. The gross profit margin of Quantong Education increased by 18.722,300 over the same period last year, and the gross margin of the three major businesses remained stable.
In 2023, Quantong Education's net profit attributable to shareholders of listed companies was 6.454 million yuan, a decrease of 48.75% over the same period last year. The main reason for the decrease was the disposal of land in 2022 and some subsidiaries obtained non-recurring income of more than 80 million yuan; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 4.563 million yuan, an increase of 106.86% over the same period last year. The main reason for the increase in the company's revenue was an increase in gross profit.
According to the annual report, as Quantong Education's external loans were further reduced, financial expenses decreased by 4.895,900; Quantong Education increased its efforts to collect accounts receivable from historical projects, and credit impairment losses decreased by 19.610,000; this year's goodwill depreciation was 12.5768 million, a year-on-year decrease of 49.2398 million, with a goodwill balance of 23.3586 million at the end of 2023. Overall, Quantong Education has further reduced these financial risks, gradually improved its financial quality, and is moving in a healthier direction.
By the end of 2023, Quantong Education's total assets had shrunk by 9.77% to $1,053 billion compared to the end of 2022.
Furthermore, in the annual report, Quantong Education revealed its business plan for 2024: maintaining competitiveness in channel and service operations, building an innovative and upgraded product chain; consolidating its position in the industry, focusing on improving the quality of teachers and deepening the integration of obstetrics and education; grasping the new wave of the industry and actively exploring new fields of education.
Losses increased year-on-year in the first quarter, following organizational restructuring
According to the 2024 quarterly report released on the same day, Quantong Education achieved revenue of 756.083 million yuan during the reporting period, a decrease of 27.69% compared with 105 million yuan in the same period last year; net loss attributable to shareholders of listed companies was 4.5406 million yuan, which increased the loss margin by 34.39% compared to the loss of 3.378,600 yuan in the same period last year; net loss attributable to shareholders of listed companies after deducting non-recurring profit and loss was 5.723,700 yuan, an increase of 36.84% year-on-year.
By the end of the first quarter, Quantong Education's total assets had shrunk by 4.83% from 1,053 billion yuan at the end of the previous year to 1,002 billion yuan; owners' equity attributable to shareholders of listed companies was 697 million yuan, a decrease of 0.59% over the previous year.
It is worth noting that in January of this year, Quantong Education underwent several personnel changes and organizational structure adjustments. Liu Yuming, who was the general manager of Quantong Education at the time, resigned, Zhou Bin took over as general manager, and Diao Xuejun was appointed Deputy General Manager of Quantong Education. In March, in a written resignation report submitted by non-independent director Zhou Qian, the board of directors of Quantong Education nominated Mr. Wen Xiaohua as a non-independent director candidate for the fourth board of directors of Quantong Education.