BRIEF: China New Higher Education’s profit inches up in first half of fiscal year
Vocational educator China New Higher Education Group Ltd. (2001.HK) on Tuesday reported its revenue rose 2.6% to nearly 1.5 billion yuan ($219 million) in the six months to March, the first half of its fiscal year, driven by higher tuition and boarding fees.
The company’s core operating costs climbed 4.9% year-over-year to 910 million yuan during the six-month period. That included a 5.3% year-over-year rise in labor costs, a result of rising compensation and benefits for core teaching roles. Its gross margin for the period fell by 1.3 percentage points to 37.2% from 38.5% a year earlier, while its net profit edged up 0.6% to 472 million yuan.
The company also said its partnership with Germany’s Steinbeis University is steadily advancing to establish a higher education institution in the Hainan Free Trade Port, which will offer undergraduate and advanced degree programs.
Shares of China New Higher Education opened flat at HK$0.73 on Wednesday. The stock is down 50% from its 52-week high.
By Lau Chi Hang
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