First High-School Education Group Co., Ltd. (“First High-School Education Group” or the “Company”) (NYSE: FHS), the largest private high school operator in West China and the third largest operator in China, provides further details regarding its net loss on financial results unaudited for the six-month period ended June 30, 2021.
The net loss in the first half of 2021 was 3.8 million RMB (0.6 million US dollars) compared to net profit of 31.9 million RMB in the same period of 2020. The decrease in profit net was due to certain one-time items and non-recurring expenses, including: (1) business expenses of about RMB 10.0 million with the initial public offering of the company; (2) Debt restructuring costs of about RMB 7.3 million; (3) one-time option granted to a strategic investor and consultant in the amount of RMB 15.0 million; (4) The expenses related to the acquisition of about 4.3 million RMB; (5) Accumulated revenue of RMB 9.6 million from the government for the relevant cooperation agreements.
Excluding the above non-recurring expenses, the Company’s comparable net profit was approximately RMB 42.2 million, an increase of 32.8% from RMB 31.9 million during from the same period of 2020.
Senior management of the company said, “In the face of a challenging regulatory environment, we remain committed to generating rapid growth with further expansion of operations while improving the utilization rate of our existing schools. As of September 1, 2021, we are running 36 school programs with a total of over 35,000 students in Yunnan Province, Guizhou Province, Shanxi Province, Shaanxi Province, Inner Mongolia Autonomous Region, Sichuan and Chongqing, with a utilization rate of 62.3%, compared to 55.3% as of December 31, 2020. Meanwhile, we have continued to invest heavily in technology and the quality of education to provide educational services. premium and authentic to satisfy every student and parent we serve. We believe that the education market in China will continue to grow steadily, and the current educational enterprises will play a very important role in the education sector. We are very confident in the market opportunities for Chinese Private High School and Gaokao Eater School Programs representative and believe our company will reach its potential beyond our responsibilities and mission.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20210929005612/en/