(Image source: Visual China)

Recently, Maple Leaf Education released its interim results report for the year ended February 29, 2024. In the first half of the fiscal year, Maple Leaf Education lost 42.32 million yuan, while the profit for the same period last year was 15.479 million yuan, a year-on-year decrease of 372.8%, and changed from profit to loss.

Regarding the conversion of profit to loss, Maple Leaf Education stated that the net effect of the increase in earnings was mainly offset by net exchange losses and the impact of the increase in financial costs during the period.

According to the interim report, in the first half of fiscal year 2024, Maple Leaf Education's revenue was 658 million yuan, an increase of 14.4% over the previous year. Among them, overseas business revenue was 421 million yuan, accounting for 63.91% of total revenue, and China business revenue was 237 million yuan.

Regarding the increase in earnings during the reporting period, Maple Leaf Education stated that it was mainly due to an increase in tuition revenue, while tuition revenue is still the main source of revenue for Maple Leaf Education. In particular, the increase in overseas operating income contributions due to the following: the increase in tuition fees in the CIS and the appreciation of the Singapore dollar against the RMB.

According to financial reports, the number of students enrolled in Maple Leaf Education decreased by 7.2% year-on-year in the first half of the fiscal year. Among them, the number of overseas students increased and the number of Chinese students decreased. In terms of the number of schools, at the end of the 2023/2024 school year, a kindergarten in Pinghu, China ceased operations, while the Tanjong Katong campus, an elementary school district in Singapore, was returned to the Singapore government due to the expiration of the lease agreement in August 2023.

During the reporting period, gross profit increased 37.5% to $332 million from 241 million yuan in the same period last year, while gross margin rose to 50.4%. This was mainly due to increased revenue and good cost control.

In terms of expenses, during the reporting period, Maple Leaf Education's marketing expenses, administrative expenses, and financial costs were RMB 11.04 million, RMB 142 million, and RMB 147 million respectively. Notably, with the exception of administrative expenses, which were basically the same as the same period last year, marketing expenses and financial costs increased by 45.86% and 50.65%, respectively, over the same period last year.

Furthermore, in the financial report, Maple Leaf Education mentioned the importance of overseas expansion strategies for the company's business, and stated that it will continue to adopt multiple expansion strategies in the future, including but not limited to increasing student enrollment, increasing tuition fees, acquiring schools that are in synergy with Maple Leaf Education, and expanding its existing schools to achieve growth goals in China and overseas.