Expects Net Profits to Increase by 50%, Financial Performance Continues to Grow
HONG KONG, Feb. 4, 2021 /PRNewswire/ — JH Educational Technology INC. (“JH Education” or the “Company“, together with its subsidiaries, the “Group“, stock code: 1935.HK) is pleased to announce that, it is expected that the consolidated net profit attributable to owners of the Group will record a significant increase of approximately 50% for the year ended 31 December 2020 (the “Year”) as compared with the corresponding period in 2019, which is the first time for the Group to release positive profit alert since its listing in 2019.
The increase of consolidated net profit attributable to owners for the Year is benefited from the significant increase of student enrollments and tuition fees of the Group during the Year, and the growth in the number of new student enrollment due to the increase in enrollment quota promoted by the expansion of existing school campuses, which is in line with the performance shown in the previous announcement of the Group in terms of the increase in the number of new student enrollment and student enrollment. As of October 31, 2020, the Group experienced a growth in the number of both new student enrollment and student enrollment, increasing by 19% year-on-year to 14,532 and 14% year-on-year to 38,867 respectively. Particularly, Zhejiang Changzheng Vocational & Technology College, one of the Group’s subsidiary schools, has the highest number of enrolled students in private junior college schools in Zhejiang Province. The continuous growth and sharp year-on-year increase of revenue demonstrates that the Group’s enrollment scale has grown continuously during the Year, the quality of education has been widely recognized, and leading position of the regional industry is increasingly consolidated. In addition, as the Group was successful listed in 2019, the expected substantial growth of financial performance for the Year is also related to the exemption from the impact of listing fees in administrative expenses in the same period in 2019.
As a leading private higher education institution, JH Education actively promotes the development of both tuition fees and student numbers to continuously support the growth of the Group’s financial performance. Firstly, Changzheng Vocational & Technology College is completely independent to determine the tuition and accommodation fees while Zhengzhou College of Economics and Business is allowed to price independently within a certain upper limit, which empower the Group with policy guarantee to increase revenue by increasing tuition fees and accommodation fees. Secondly, the Group also actively develops the strategies of increasing new student enrollment and expanding the campus. The expansions of the existing campuses of Zhengzhou College of Economics and Business and Changzheng Vocational & Technology College were completed in 2020, creating 1,862 and 2,428 student quotas respectively. Apart from the completion of the expansion and construction of the new campuses, the Group will also seize the appropriate opportunity to acquire suitable schools that are beneficial to the sustainable development of the Group, so as to strengthen the brand influence and improve the Group’s performance.
Mr. Chen Yuguo, Chairman, Chief Executive Officer and Executive Director of JH Education said, “Faced with the complicated domestic and international economic environment and fierce competition in the education industry in 2020, JH Education has achieved financial growth against the market. This is the first time for JH Education to release positive profit alert since its listing, which demonstrates the Group’s development achievements. Since the establishment of the Group, JH Education is committed to providing high-quality private higher education and building a well-known private education brand in China, establishing a reputable undergraduate and junior college to serve society and promoting all-round development of students. Looking forward, we will continuously expand business operations and school networks to achieve economies of scale, upholding the educational philosophy of ‘people-oriented education, moral cultivation, serve the society and pursuit of excellence’, and improving our teaching quality and reputation to receive recognition from the market.”
About JH Educational Technology INC.
JH Educational Technology INC. (“JH Education”) is a leading private higher education institution in Zhejiang Province. In addition to providing higher education services, JH Education also provides secondary education services to high school students in Zhejiang Province. There are three subsidiary schools controlled and operated by JH Education, including Zhengzhou College of Economics and Business, Zhejiang Changzheng Vocational & Technology College and Yueqing Jingyi Secondary School, which provides students with high-quality education including undergraduate education, junior college education and high school education. With more than 20 years’ private school operating experience and teaching quality, the subsidiary schools operated by JH Education have received many awards and commendations from the people’s governments at all levels and relevant education bureaus, including the “Outstanding Private School” awarded by the Zhejiang Provincial People’s Government to Zhejiang Changzheng Vocational & Technology College , and the “Outstanding Private School” awarded by the Henan Provincial Department of Education to Zhengzhou College of Economics and Business.