Hailiang Education Reports Jump in Income, Revenue for First Half
Hailiang Education Group Inc. (Nasdaq: HLG), which provides education services for K-12 students in China, reported late today that its revenue for the six months ended Dec. 31 rose nearly 30 percent compared with the prior year while net income jumped by two-thirds.
The Hangzhou-based company, which operates 36 schools with more than 61,000 students, said that revenue in the first half of its fiscal year rose to $94.9 million from $73.1 million the year before.
Net income at the company for the period was $18.8 million, or 4 cents per fully diluted share, an increase of 66.4 percent from income of $11.3 million, or 3 cents per share a year earlier.
"As an education services provider of private primary, middle and high schools, Hailiang Education continued to facilitate the growth in the existing schools that we operate, enhance education quality and academic performance, and to provide diverse education and management services for our schools and students," said Ming Wang, the company's chairman and chief executive officer.
The company attributed the improved results to an increase in tuition and other education services as well as a higher gross margin, which rose 7.1 percentage points to 30.1 percent.
Shares in Hailiang closed today before the earnings announcement at $38.09 per share, up 28 cents.