Financial Highlights for the Six Months Ended
For the Six Months Ended | |||||||||||
($’000, except per share data) | 2023 | 2022 | % Change | ||||||||
Revenue | $ | 3,648 | $ | 5,453 | (33.1 | )% | |||||
Gross profit | $ | 2,063 | $ | 2,788 | (26.0 | )% | |||||
Gross margin | 56.6 | % | 51.1 | % | (5.4 | )pp | |||||
Income (loss) from operations | $ | 273 | $ | 1,117 | (75.6 | )% | |||||
Operating profit (loss) margin | 7.5 | % | 20.5 | % | (13.0 | )pp | |||||
Net income (loss) | $ | 125 | $ | 1,056 | 88.2 | % | |||||
Basic and diluted earnings (loss) per share | $ | 0.05 | $ | 0.19 | (73.1 | )% | |||||
* pp: percentage points | |||||||||||
- Revenue decreased by 33.1% year-over-year to
$3.65 million for the six months endedSeptember 30, 2023 from$5.45 million for the same period of the prior fiscal year. The decrease in revenue is primarily attributable to a decrease in one course offering from our online education services. - Gross profit decreased by 26.0% to
$2.01 million for the six months endedSeptember 30, 2023 from$2.79 million for the same period of the prior fiscal year. Gross margins were 56.6% and 51.1% for the six months endedSeptember 30, 2023 and 2022, respectively. The decrease in gross profit of online education services is primarily due to the decrease in revenue. - Incomes from operations were
$0.27 million and$1.12 million for the each of six months endedSeptember 30, 2023 and 2022. Operating profit margin was 7.5% for the six months endedSeptember 30, 2023 , compared to operating profit margin of 20.5% for the same period of the prior fiscal year. - Net income was
$0.13 million or, income per share of$0.05 for the six months endedSeptember 30, 2023 , compared to net income of$1.06 million , or income per share of$0.19 , for the same period of the prior fiscal year.
Unaudited Financial Results for the six months ended
Revenue
For the six months ended
For the six months ended
Cost of revenue
Cost of revenue decreased by
Gross profit
Gross profit decreased by
Operating expenses
Selling expenses increased by
General and administrative expenses decreased by
Total operating expenses increased by
Income (loss) from operations
Incomes from operations were
Other income (expenses)
Total other expenses, including interest income, loss from investments in unconsolidated entity, net of other expenses, was
Income before income taxes
Income before income taxes was
Net income and earnings per share
Net income was
After deducting non-controlling interests, net profit attributable to the Company was
Weighted average number of shares outstanding was 4,440,085 for the six months ended
Financial Condition
As of
Net cash used in operating activities was
Subsequent Events
Management has evaluated subsequent events through
About
Headquartered in
Safe Harbor Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are not statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the online training industry in
For more information, please contact:
Raincy Du
ir@edu-edu.com.cn
WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIES | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
As of | As of | ||||||
2023 | 2023 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash | $ | 11,421,498 | $ | 12,567,463 | |||
Accounts receivable, net | 777,440 | 793,212 | |||||
Other receivables, net | 253,700 | 251,953 | |||||
Loan to third parties, current | 603,165 | 551,930 | |||||
Loan to related parties | 1,745,384 | 1,761,979 | |||||
Other current assets | 216,393 | 69,104 | |||||
TOTAL CURRENT ASSETS | 15,017,580 | 15,995,641 | |||||
Loan to third parties, noncurrent | 92,218 | 171,004 | |||||
Property and equipment, net | 499,659 | 495,255 | |||||
Intangible assets, net | 16,834 | 54,382 | |||||
Operating lease right-of-use assets | 448,862 | 391,189 | |||||
Long-term rent deposit | 52,749 | 56,040 | |||||
Deferred tax assets, net | 352,681 | 374,681 | |||||
TOTAL ASSETS | $ | 16,480,583 | $ | 17,538,192 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Due to related parties | $ | 315,512 | $ | 315,512 | |||
Deferred revenue | 1,874,303 | 2,110,628 | |||||
Operating lease liabilities, current | 219,072 | 210,274 | |||||
Taxes payable | 1,042,037 | 1,119,601 | |||||
Other payables | 116,830 | 136,110 | |||||
Accrued expenses and other liabilities | 171,732 | 179,440 | |||||
Accounts payable | 91,640 | 233,473 | |||||
TOTAL CURRENT LIABILITIES | 3,831,126 | 4,305,038 | |||||
Operating lease liabilities, noncurrent | 227,661 | 203,171 | |||||
TOTAL LIABILITIES | 4,058,787 | 5,993,766 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
SHAREHOLDERS’ EQUITY | |||||||
EQUITY | |||||||
Common stock, | 44,401 | 44,401 | |||||
Additional paid-in capital | 5,123,941 | 5,123,941 | |||||
Statutory reserve | 907,869 | 867,530 | |||||
Retained earnings | 6,604,632 | 6,417,842 | |||||
Accumulated other comprehensive loss | (1,487,484 | ) | (752,391 | ) | |||
Total shareholders’ equity | 11,193,359 | 11,701,323 | |||||
Non-controlling interest | 1,228,437 | 1,328,660 | |||||
TOTAL SHAREHOLDERS’ EQUITY | 12,421,796 | 13,029,983 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 16,480,583 | $ | 17,538,192 | |||
WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIES | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||
For the Six Months Ended | |||||||
2023 | 2022 | ||||||
REVENUE | $ | 3,647,954 | $ | 5,453,052 | |||
COST OF REVENUE AND RELATED TAX | |||||||
Cost of revenue | 1,569,477 | 2,650,570 | |||||
Business and sales related tax | 15,606 | 14,379 | |||||
GROSS PROFIT | 2,062,871 | 2,788,103 | |||||
OPERATING EXPENSES | |||||||
Selling expenses | 804,790 | 573,881 | |||||
General and administrative expenses | 985,346 | 1,097,104 | |||||
Total operating expenses | 1,790,136 | 1,670,985 | |||||
INCOME FROM OPERATIONS | 272,735 | 1,117,118 | |||||
OTHER INCOME (EXPENSE) | |||||||
Interest income | 98,240 | 104,846 | |||||
Other income (expense) | (190,929 | ) | 1,596 | ||||
Total other income (expense), net | (92,689 | ) | 106,442 | ||||
INCOME BEFORE INCOME TAX PROVISION | 180,046 | 1,223,560 | |||||
PROVISION FOR INCOME TAXES | 55,492 | 167,071 | |||||
NET INCOME | 124,554 | 1,056,489 | |||||
Less: net income (loss) attributable to non-controlling interest | (102,575 | ) | 193,622 | ||||
NET INCOME ATTRIBUTABLE TO WAH FU EDUCATION GROUP LIMITED | $ | 227,129 | $ | 862,867 | |||
COMPREHENSIVE INCOME (LOSS) | |||||||
Net income | 124,554 | 1,056,489 | |||||
Other comprehensive loss: foreign currency translation loss | (732,741 | ) | (1,044,121 | ) | |||
Total comprehensive income (loss) | (608,187 | ) | 12,368 | ||||
Less: Comprehensive income (loss) attributable to non-controlling interest | 2,352 | (16,687 | ) | ||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO WAH FU EDUCATION GROUP LIMITED | $ | (610,539 | ) | $ | 29,055 | ||
Earnings per common share - basic and diluted | $ | 0.05 | $ | 0.19 | |||
Weighted average shares - basic and diluted | 4,440,085 | 4,440,085 | |||||
WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATION STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||
Ordinary Shares | Additional Paid-in | Statutory | Retained | Accumulated Other Comprehensive | Shareholders’ | Non- controlling | Total | ||||||||||||||||||||||||||||
Shares | Amount | Capital | Reserves | Earnings | Income (Loss) | Equity | Interest | Equity | |||||||||||||||||||||||||||
Balance at | 4,440,085 | $ | 44,401 | $ | 5,123,941 | $ | 867,530 | $ | 6,417,842 | $ | (752,391 | ) | $ | 11,701,323 | $ | 1,328,660 | $ | 13,029,983 | |||||||||||||||||
Net income (loss) | - | - | - | 227,129 | - | 227,129 | (102,575 | ) | 124,554 | ||||||||||||||||||||||||||
Appropriation of statutory reserve | - | - | - | 40,339 | (40,339 | ) | - | - | - | - | |||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | (735,093 | ) | (735,093 | ) | 2,352 | (732,741 | ) | |||||||||||||||||||||||
Balance at | 4,440,085 | $ | 44,401 | $ | 5,123,941 | $ | 907,869 | $ | 6,604,632 | $ | (1,487,484 | ) | $ | 11,193,359 | $ | 1,228,437 | $ | 12,421,796 | |||||||||||||||||
Balance at | 4,440,085 | $ | 44,401 | $ | 4,798,793 | $ | 657,329 | $ | 5,722,151 | $ | (1,190 | ) | $ | 11,221,484 | $ | 788,656 | $ | 12,010,140 | |||||||||||||||||
Capital contribution | - | - | - | - | - | - | - | 42,174 | 42,174 | ||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | 921,007 | - | 921,007 | 193,622 | 1,114,629 | ||||||||||||||||||||||||||
Foreign currency translation adjustment | - | - | - | - | - | (1,027,437 | ) | (1,027,437 | ) | (16,687 | ) | (1,044,124 | ) | ||||||||||||||||||||||
Balance at | 4,440,085 | $ | 44,401 | $ | 4,798,793 | $ | 657,329 | 6,643,158 | $ | (1,028,627 | ) | $ | 11,115,054 | $ | 1,007,765 | $ | 12,122,819 | ||||||||||||||||||
WAH FU EDUCATION GROUP LIMITED AND SUBSIDIARIES | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
For the six months ended, | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net Income | $ | 124,554 | $ | 1,056,489 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 37,158 | 81,492 | |||||
Non-cash lease expense | 122,276 | 519,099 | |||||
Loss from disposal of property and equipment | - | 818 | |||||
Provision for doubtful accounts | 194,014 | 19,658 | |||||
Interest income from loan to third parties | 1,445 | 27,558 | |||||
Deferred tax benefit | - | (31,120 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (225,539 | ) | (1,056,061 | ) | |||
Other receivable, net | (33,407 | ) | 15,891 | ||||
Other current assets | (112,254 | ) | (50,228 | ) | |||
Rent deposit | - | 8,746 | |||||
Deferred revenue | (115,033 | ) | (180,174 | ) | |||
Taxes payable | (12,102 | ) | 281,809 | ||||
Accounts payable | (131,131 | ) | - | ||||
Other payable | (1,551 | ) | 708 | ||||
Operating lease liabilities | 58,915 | (518,667 | ) | ||||
Accrued expenses and other liabilities | (7,708 | ) | 121,649 | ||||
Net cash provided by (used in) operating activities | (100,363 | ) | 297,667 | ||||
Cash flows from investing activities: | |||||||
Purchase of property and equipment | - | (4,205 | ) | ||||
Payments made for loans to related party | - | - | |||||
Payments made for loans to related party | - | (8,250 | ) | ||||
Payments made for loans to third parties | - | (164,607 | ) | ||||
Net cash used in investing activities | - | (177,062 | ) | ||||
Cash flows from financing activities: | |||||||
Changes in due to related parties | - | - | |||||
Capital contribution by shareholders of non-controlling interest | - | 42,174 | |||||
Net cash provided by financing activities | - | 42,174 | |||||
Effect of exchange rate fluctuation on cash | (1,045,602 | ) | (1,098,438 | ) | |||
Net decrease in cash | (1,145,965 | ) | (935,659 | ) | |||
Cash at beginning of the period | 12,567,463 | 11,763,445 | |||||
Cash at end of the period | $ | 11,421,498 | $ | 10,827,786 | |||
Supplemental cash flow information | |||||||
Cash paid for income taxes | $ | (37,190 | ) | $ | (6,745 | ) | |
Non-cash financing activities | |||||||
Right of use assets obtained in exchange for operating lease obligations | $ | 200,115 | $ | 766,584 |
Source:
2024 GlobeNewswire, Inc., source