WEB NEWS Comments & Business Outlook
HANGZHOU, China, July 19, 2017 /PRNewswire / -- Hailiang Education Group Inc. (Nasdaq: HLG) ("Hailiang Education" or the "Company"), a provider of private K-12 educational services in China, today announced that its affiliate, Zhejiang Hailiang Education Investment Co., Ltd., ("Zhejiang Hailiang") and its related party, Hailiang Group Co., Ltd. ("Hailiang Group") have entered into a 30-year Educational Cooperative Partnership Agreement (the "Agreement") with the Nanqiao government in Chuzhou city, Anhui Province, to launch Chuzhou Hailiang Foreign Language School (the "School"). Upon expiration of the 30-year term, Hailiang Education will have the priority to renew the Agreement and extend its corresponding operation of the School.
Pursuant to the Agreement, Zhejiang Hailiang will rent existing school buildings and related facilities from the Nanqiao government, and independently operate the School by leveraging Hailiang's renowned brand, extensive management experience, strong faculty and extensive teaching resources. As consideration, Zhejiang Hailing will pay to Nanqiao government certain annual fees (waived until the school year starting September 1, 2023) as well as a portion of its net profits to be derived from the School's operation commencing from September 1, 2020. The School will offer a variety of educational programs covering primary school, middle school, and high school as well as international education, with a planned total enrollment size of 1,500 students. Zhejiang Hailiang will assume School operation on September 1, 2017 and start collecting tuition fees from September 1, 2018. By continuing its efforts as a premium, specialty and international education provider, Hailiang Education aims to help elevate the local education level in Nanqiao through its established brand and resources, with a goal to forge Chuzhou Hailiang Foreign Language School a high-quality school in the Yangtze River Delta region.
The Agreement marks Hailiang Education's first asset-light cooperation in the form of rentals of existing school facilities from local government, and will provide valuable experience for its rapid expansion with the asset-light model in the future.
Comments & Business Outlook
CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED JUNE 30, 2013, 2014 AND 2015
(Amounts in thousands except per share data)
Note
2013
RMB
2014
2015
RMB
Revenue
4
436,994
462,754
514,787
Cost of revenue
7(ii)
(293,763
)
(299,683
)
(334,528
)
Gross profit
143,231
163,071
180,259
Other income
5
4,094
1,792
2,460
Selling expenses
7(ii)
(17,630
)
(15,635
)
(15,540
)
Administrative expenses
7(ii)
(23,080
)
(28,622
)
(33,334
)
Operating profit
106,615
120,606
133,845
Net finance income
7(i)
16,575
20,066
7,149
Profit before tax
123,190
140,672
140,994
Income tax expense
8
—
—
—
Profit
123,190
140,672
140,994
Other comprehensive income
—
—
29
Total comprehensive income
123,190
140,672
141,023
Earnings per share
Basic and diluted earnings per share
9
0.34
0.39
0.39
