EQS-News: China New Higher Education Group Announces Results for FY2019 Total Revenue Increases 72.2% to RMB1,252 Million; Net Profit Grows 69.3% Student Enrollment Up 21.3%; Strong Results GrowthSource: EQS
Total Revenue Increases 72.2% to RMB1,252 Million; Net Profit Grows 69.3%
Student Enrollment Up 21.3%; Strong Results Growth
The Group's Position
Founder of the Company and Chairman of the Board Mr.
Also, we paid attention to improving our teaching and digitalization and digitalized our teaching, management, services and safety measures. During COVID-19 outbreaks, TronClass, an online education platform combining teaching, learning, management and assessment functions, has played a prominent role in meeting online teaching and learning needs and accumulated over 40 million visits.
Looking ahead, we expect growth and plenty of room for value increase, thanks to favorable policies and the potential geographical advantages of our schools. We shall seize the opportunities to achieve synergy and rely on our growth strategy which prioritizes organic growth and pursues business expansion to swiftly improve operational efficiency and profitability, diversify our sources of revenue, bringing greater value for our shareholders."
In 2019, the Group's revenue increased 94.1% to
The Company continuously optimized its cost structure and increased its teaching input, with its major business constituting 71% of the total costs in 2019, up from 61% in 2018, which showed constant improvement in teaching quality; on the other hand, the proportions of items such as management fees and financing expenses decreased from last year.
In 2019, the Company's profitability reached a new high. The gross profit increased 89.9% yoy to
The Company's total capital doubled and level of liability decreased by half, with the total capital of the Company grew more than doubling yoy by 153.5% to
Focusing on the teaching quality
In 2019, to answer the calling of MOE, the Group repeatedly increased its input into education. The Group was enabled to add 24 new, popular majors, mainly on arts, engineering, and medicine; based on the OBE (Outcomes-based Education) model, the Group enhanced its course research; the Group organized more than 100 teacher training sessions to establish a team of dual-qualified teachers, resulting in 2 first prizes and 7-second prizes from provincial teaching competitions; Also, approximately 1,700 students of the Group participated in various types of academic contests in 2019 and won nearly 500 awards and honors, including the Special Award (特等獎) and Best Innovation Award (最佳創新獎) from the National Finals of the 9th China National College Student "Innovation, Originality and Entrepreneurship" Challenge national finals grand prize (第九屆全國大學生電子商務創新、創意及創業挑戰全國總決賽) and National Top-class Award (全國一等獎) from the 3D Design Show (Elite League) (全國三維數位化創新設計大賽（精英聯賽）); Finally, the Group continued to push forward with international cooperation by signing agreements with 17 overseas schools or organizations in countries including the
Bolstering the employment quality
In 2019, the Group trained innovative talent and deepened industry-education integration, leading to a drastic increase in employment quality. It further promoted a high-paid talent training model with pilot classes (such as the college of excellence and Talent Class program), bringing about an average employment rate of nearly 100% and an annual salary of above
Raising the level of digitalization
In 2019, the Group implemented digital teaching, management, services and safety measures:
For digital teaching, the Group combined cloud technologies to establish TronClass, an online education platform combining teaching, learning, management and assessment functions, which has played a prominent role during the COVID-19 outbreaks in meeting online teaching and learning demands and recorded over 40 million visits.
Regarding digital management, the Group established its computing center, data center, and safety center with help from
As for digital services, the Group independently developed the teacher-student digital integrated service platform using micro-frontends, big data and cloud computing structures, providing teachers and students with integrated services - including academic results, exam registration, fee payment, teaching, and learning assessment, apartment repair, and suggestions and advice-recorded more than 15 million times.
Concerning digital safety measures, the Group cooperated with major market player
The Company will continue to take advantage of its strengths in the collectivized operation of schools and implement its two-wheels-driven development strategy. For Organic Growth, the Group will further enhance the quality of its teaching, employment, management, and services expand its sources of revenue and focus on light assets, to make the demand side more scientifically, the user side more efficiently, the input side more reasonably and the income side more effectively. Regarding Value Investment, the Group will stick to the principle of "Precision, Stability and Collectivized Operation" in promoting higher education, It will also look for quality targets in regions with a low gross enrollment rate, high student demand and great potential for future development; for newly acquired schools, the Group will make good use of its strength of sharing resources and promote both synergy and innovation in a host of areas through support from sources including digital platforms, to further solidify its financial foundation and markedly increase the overall post-investment benefits.
The Group proactively invested in 5 colleges and universities before and after the listing, the acquisition cost is far below current market price, showing evident first-mover advantages; with effective group management and the obvious post-investment integration effects of the acquired schools, the Group currently has more than 113,500 enrolled students, ranks third among listed higher education groups in
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The Group provides high quality higher education in a wide selection of fields in applied sciences. Its courses are designed to equip students with practical and readily applicable skills, helping to prepare them for the job market. As a leader in high-quality employment, the Group won the title of the Top 50 National Employment of the MOE, with an average employment rate of above 97%. The Group became a constituent stock of the Hang Seng Composite Small Cap Index and the Hang Seng Consumer Goods & Services Index in the Hang Seng Composite Index Series in
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Document title: China New Higher Education Group Announces Results for FY2019 Total Revenue Increases 72.2% to