China Chuanglian Education Financial Announces 2017 Annual Result

Loss significantly narrowed; revenue surged 51.8%


Financial Highlights

 

 

 

For the year ended 31 Dec

HK$000

2017

2016

Turnover

134,022

88,287

   Securities trading

4,253

   Educational consultancy and online training & education services income

126,144

88,287

   Insurance brokage

3,625

Gross profit

73,748

44,950

Loss attributable to owners of the Company

(15,232)

(189,233)

Adjusted loss attributable to owners of the Company*

(6,729)

(65,618)

Basic loss per share (RMB cents)

(0.33)

(4.07)

Adjusted basic loss per share (RMB cents)*

(0.14)

(1.41)

 

*Excluding share-based payments and impairment losses charged/reversed

 

HONG KONG, CHINA – Media OutReach – 29 March 2018 – China Chuanglian Education Financial Group Limited (HKEx stock code: 2371.HK, the “Group”) announced its annual results. For the year ended 31 December 2017, the Group recorded a turnover from continuing operations of approximately RBM134.0 million (2016: approximately RMB88.3 million), representing a significant increase of approximately 51.8%, which is mainly due to the increased geographical coverage of the educational consultancy and online training and education business in the current year, resulting in the increase of revenue from the educational consultancy and online training and education business. During the year, the loss attributable to owners of the Company was significantly narrowed to RMB15.2 million as compared to a loss of approximately RMB189.2 million in the past year.

 

During the year, basic loss per share was RMB 0.33 cents (2016: RMB 4.07 cents).  


Business Review

 

Online Education

 

The Group is principally engaged in the provision of the online training and education services in the PRC. Being one of the very few pioneers of online education providers in the PRC, the Group mainly provides vocational training in relation to job adaption and skill enhancement to civil servants and professional technical personnel, such as lawyers, accountants, doctors, teachers, etc., in the PRC. The current population of civil servants and professional technical personnel in the PRC is over 77 million.

 

The Group is currently providing online training and education services to its users through internet and telecommunication networks. The Group is operating over 120 online training and education platforms and a mobile terminal learning platform, Rongxue App (融学App). Currently, it has over 4 million of pay users. Over the past few years, its online training platforms had provided training to an accumulated person-times of over 20 million. Registered users of the Rongxue App increased quickly to over 2 million in the current year.

 

During the year, the Group continued to expand its online training and education business to more geographical areas in the PRC. Its online training and education business currently covers 17 provinces, autonomous regions and municipalities as well as 40 cities in the PRC.

 

Internet Finance

 

Leveraging on the accurate big data accumulated from the online training, the Group has taken certain steps to expand into the financial business in the current year. Xinmei Mutual Life Insurance Agency (“Xinmei Mutual”) (信美人寿相互保险社), the Group is one of the promotors of Xinmei, was officially granted with all the relevant licences to commence its business in May 2017 and Xinmei Mutual also launched its first formal insurance product during 2017.

 

In order to brokerage the insurance products from Xinmei Mutual and other insurance companies, the Group has acquired 100% equity interest in Beijing Zhongjin Insurance Brokerage Limited (“Beijing Zhongjin”) (北京中金保险经纪有限公司), an insurance brokerage company in the PRC, and 100% equity interest in Well Tunes Financial Group Limited, an insurance brokerage company in Hong Kong, so as to assist its existing and potential customers with their possible needs of offshore insurance products.

 

Future Plans

 

Over the past few years, the Group’s online training and education business has gradually increased its geographical coverage in the PRC. In the coming years, the Group will continue to expand its geographical coverage to new business areas and promote the online training and education penetration rate in the existing business areas.

 

During 2017, the PRC government has introduced a new standard named “National Occupational Qualification” (國家職業資格) of professional technical personnel and skilled personnel which covers 139 different occupations. It is believed that it represents a huge business opportunity to the Group’s online training and education business.

 

Apart from the domestic training and education, the Group target to introduce certain high quality international curriculum into the PRC in order to diversify its business, as well as promote the globalization and recognition of the education system in the PRC.

 

Meanwhile, leveraging on the solid foundation of its training and education business, the Group commenced to build up financial business by entering into the insurance related business in the current year. Apart from insurance related business, the Group is also exploring the possible development of securities trading and asset management business to further satisfy the potential financial needs of customers. It is believed that the huge volume of accurate data accumulated from the Group’s online training and education business can bring the Group forward to another business opportunity in online financial services which can become another growth driver in the foreseeable future.

 

About China Chuanglian Education Financial Group Limited

China Chuanglian Education Financial (2371.HK) is principally engaged in the provision of the online training and education services in the PRC. It focuses on vocational education and continuing education, and provides massive online and offline training services to civil servants and professional technical personnel. Its online training platforms had provided training to an accumulated person-times of over 20 million and registered users of Rongxue App has increased to over 2 million.

 

Meanwhile, leveraging on the accurate big data accumulated from the online training, the Group has taken certain steps to expand into the financial business. In 2016, the Group has become one of the nine promotors of Xinmei Mutual Life Insurance Agency. The Group has also acquired insurance brokerage companies in the PRC and Hong Kong.