On August 16, Gelonhui announced the unaudited financial results for the second quarter of 2024 of Shangde Institution (STG.US). The net revenue for the second quarter of 2024 was 0.4922 billion yuan, compared with 0.5264 billion yuan for the same period last year; the gross bill (non-U.S. GAAP) was 0.3839 billion yuan, compared with 0.3541 billion yuan for the same period last year; the gross profit was 0.4156 billion yuan, compared with 0.4669 billion yuan for the same period last year; the net profit was 82.3 million yuan, compared with 0.1739 billion yuan for the same period last year. The net profit margin for the second quarter of 2024 was 16.7%. In the second quarter of 2024, the basic and diluted earnings per share were RMB 12.00.
As of June 30, 2024, the company held cash, cash equivalents and restricted cash of 0.7586 billion yuan, short-term investments of 0.2439 billion yuan, compared with cash, cash equivalents and restricted cash of 0.7664 billion yuan and short-term investments of 0.1421 billion yuan as of December 31, 2023.
In terms of operation, the number of new students enrolled was 168,296, compared with 154,209 for the same period last year.
"In the face of a challenging macroeconomic environment, our company has demonstrated enough strategic flexibility and achieved solid performance in the second quarter. We achieved a net revenue of 0.4922 billion yuan and a net profit of RMB 82.3 million, which highlights our resilience and adaptability in adversity and demonstrates our firm commitment to cost optimization and sustainable growth. This solid financial position not only allows us to effectively respond to unpredictable situations, but also creates opportunities for our business growth." Liu Tongbo, CEO of Shangde Institution, said. "Looking ahead to the second half of the year, our top priority is to improve brand awareness and enhance the quality of our existing products and services. We take a cautious and proactive approach to expanding and improving our products. Our commitment to these key growth measures remains unchanged as we continue to focus on improving operational efficiency and profitability."
"We have had another excellent quarter in our core business. Although the university post-course business has been quite slow in recent quarters, our gross bill has achieved year-on-year growth for the fourth consecutive quarter due to the enrollment of new students in our interest courses. In addition, we achieved a net profit of RMB 82.3 million and positive operating cash flow this quarter. This gives us confidence to face the challenges in a dynamic environment. Looking ahead, we will continue to optimize our course products while maintaining efficient operations. These strategic initiatives will enable us to grasp emerging opportunities, strengthen our leadership position in the industry, and continue to create value for our shareholders." Li Hangyu, CFO of Shangde Institution, commented.
Looking ahead to the third quarter of 2024, Shangde Institution currently expects net revenue to be between RMB 0.49 billion yuan and 0.51 billion yuan, representing a year-on-year decrease of 2.8% to 6.6%.