China Liberal Education Holdings Limited Reports Financial Results for the First Six Months of Fiscal Year 2024
China Liberal Education Holdings (Nasdaq: CLEU) reported its unaudited financial results for the first six months of fiscal year 2024 ended June 30, 2024. The company experienced a revenue decline to $0.89 million, down 34.8% from $1.36 million in the same period last year. Despite this, the company maintained a strong gross margin of 84.8%, up from 63.2% last year. The company reported a net loss of $4.72 million, compared to a net income of $0.38 million in the previous year.
Key financial highlights include:
- Revenue decreased by 34.8% to $0.89 million
- Gross profit decreased by 12.6% to $0.75 million
- Gross margin increased by 21.5 percentage points to 84.8%
- Loss from operations was $4.56 million
- Basic and diluted loss per share were $2.04
- Cash position increased to $84.15 million as of June 30, 2024
China Liberal Education Holdings (Nasdaq: CLEU) ha riportato i suoi risultati finanziari non verificati per i primi sei mesi dell'anno fiscale 2024 conclusosi il 30 giugno 2024. L'azienda ha registrato un calo dei ricavi a 0,89 milioni di dollari, in diminuzione del 34,8% rispetto a 1,36 milioni di dollari nello stesso periodo dell'anno scorso. Tuttavia, l'azienda ha mantenuto un margine lordo solido dell'84,8%, rispetto al 63,2% dell'anno precedente. L'azienda ha riportato una perdita netta di 4,72 milioni di dollari, rispetto a un utile netto di 0,38 milioni di dollari dell'anno precedente.
I principali punti salienti finanziari includono:
- I ricavi sono diminuiti del 34,8% a 0,89 milioni di dollari
- Il profitto lordo è diminuito del 12,6% a 0,75 milioni di dollari
- Il margine lordo è aumentato di 21,5 punti percentuali all'84,8%
- La perdita dalle operazioni è stata di 4,56 milioni di dollari
- La perdita per azione di base e diluita è stata di 2,04 dollari
- La posizione di cassa è aumentata a 84,15 milioni di dollari al 30 giugno 2024
China Liberal Education Holdings (Nasdaq: CLEU) informó sus resultados financieros no auditados para los primeros seis meses del año fiscal 2024 que finalizaron el 30 de junio de 2024. La compañía experimentó un declive en los ingresos a 0.89 millones de dólares, una disminución del 34.8% en comparación con 1.36 millones de dólares en el mismo período del año pasado. A pesar de esto, la empresa mantuvo un margen bruto sólido del 84.8%, en comparación con el 63.2% del año anterior. La compañía reportó una pérdida neta de 4.72 millones de dólares, en comparación con un ingreso neto de 0.38 millones de dólares en el año anterior.
Los aspectos destacados financieros clave incluyen:
- Los ingresos disminuyeron en un 34.8% a 0.89 millones de dólares
- El beneficio bruto disminuyó en un 12.6% a 0.75 millones de dólares
- El margen bruto aumentó en 21.5 puntos porcentuales al 84.8%
- La pérdida de operaciones fue de 4.56 millones de dólares
- La pérdida por acción básica y diluida fue de 2.04 dólares
- La posición de efectivo aumentó a 84.15 millones de dólares al 30 de junio de 2024
중국 리버럴 에듀케이션 홀딩스(Nasdaq: CLEU)는 2024 회계 연도 첫 6개월(2024년 6월 30일 종료)의 감사되지 않은 재무 결과를 발표했습니다. 이 회사는 수익 감소를 경험했으며, 수익은 89만 달러로 작년 같은 기간의 136만 달러에서 34.8% 감소했습니다. 그럼에도 불구하고, 이 회사는 63.2%에서 증가한 84.8%의 강력한 총 이익률을 유지했습니다. 회사는 472만 달러의 순손실을 보고했으며, 이는 작년의 38만 달러 순이익과 비교됩니다.
주요 재무 하이라이트는 다음과 같습니다:
- 수익이 34.8% 감소하여 89만 달러
- 총 이익이 12.6% 감소하여 75만 달러
- 총 이익률이 21.5 포인트 상승하여 84.8%
- 운영 손실이 456만 달러
- 기본 및 희석 손실 주당 2.04 달러
- 2024년 6월 30일 기준 현금 보유액이 8415만 달러로 증가함
China Liberal Education Holdings (Nasdaq: CLEU) a publié ses résultats financiers non vérifiés pour les six premiers mois de l'exercice 2024 se terminant le 30 juin 2024. La société a connu un décroissement des revenus à 0,89 million de dollars, soit une baisse de 34,8 % par rapport à 1,36 million de dollars au cours de la même période l'année précédente. Néanmoins, la société a maintenu une marge brute solide de 84,8 %, en hausse par rapport à 63,2 % l'année précédente. La société a déclaré une perte nette de 4,72 millions de dollars, contre un bénéfice net de 0,38 million de dollars l'année précédente.
Les points saillants financiers clés incluent :
- Les revenus ont diminué de 34,8 % à 0,89 million de dollars
- Le bénéfice brut a diminué de 12,6 % à 0,75 million de dollars
- La marge brute a augmenté de 21,5 points de pourcentage à 84,8 %
- La perte d'exploitation était de 4,56 millions de dollars
- La perte par action de base et diluée était de 2,04 dollars
- La position de trésorerie a augmenté à 84,15 millions de dollars au 30 juin 2024
China Liberal Education Holdings (Nasdaq: CLEU) hat seine ungeprüften Finanzergebnisse für die ersten sechs Monate des Geschäftsjahres 2024 zum 30. Juni 2024 veröffentlicht. Das Unternehmen verzeichnete einen Umsatzrückgang auf 0,89 Millionen USD, ein Rückgang um 34,8% im Vergleich zu 1,36 Millionen USD im gleichen Zeitraum des Vorjahres. Trotz dessen hielt das Unternehmen eine starke Bruttomarge von 84,8%, ein Anstieg von 63,2% im Vergleich zum Vorjahr. Das Unternehmen meldete einen Nettverlust von 4,72 Millionen USD, im Vergleich zu einem Nettogewinn von 0,38 Millionen USD im Vorjahr.
Wichtige finanzielle Highlights sind:
- Umsatz sank um 34,8% auf 0,89 Millionen USD
- Bruttogewinn sank um 12,6% auf 0,75 Millionen USD
- Bruttomarge stieg um 21,5 Prozentpunkte auf 84,8%
- Absatzverlust betrug 4,56 Millionen USD
- Grund- und verwässerter Verlust pro Aktie betrugen 2,04 USD
- Die Liquidität belief sich zum 30. Juni 2024 auf 84,15 Millionen USD
- Gross margin increased significantly from 63.2% to 84.8%
- Cash position grew from $20.34 million to $84.15 million
- Revenue from textbooks and course material sales increased by 100%
- Government subsidy income increased by $0.05 million
- Revenue decreased by 34.8% to $0.89 million
- Net loss of $4.72 million compared to net income of $0.38 million in the previous year
- Loss from operations increased to $4.56 million from $0.74 million
- Revenue from technological consulting services for smart campus solutions decreased by 97.4%
- Allowance for doubtful accounts increased significantly to $2.56 million
Insights
China Liberal Education Holdings 's financial results for H1 2024 show significant challenges. Revenue declined by 34.8% to
Despite these setbacks, there are some positive aspects:
- Gross margin improved to
84.8% , up from63.2% - Cash position strengthened to
$84.15 million , a substantial increase from$20.34 million at the end of 2023 - Core tailored job readiness training services remained relatively stable
However, the net loss of
The company's pivot towards technological consulting for smart campus solutions appears to be struggling, with revenue from this segment dropping by
On a positive note, the resurgence in textbook and course material sales indicates a potential for growth in traditional educational products. The development of 12 English textbooks could provide a steady revenue stream if demand continues to increase.
The reduction in marketing staff and decreased selling expenses might impact future growth potential. However, the increase in general and administrative expenses, largely due to share-based compensation, suggests efforts to retain key talent.
The company's ability to maintain a strong gross margin despite revenue challenges is commendable, but the sustainability of this high margin in the face of declining revenues is questionable. The education sector in China remains highly regulated and the company's adaptability to policy changes will be important for future success.
Ms. Ngai Ngai Lam, Chairwoman and CEO of China Liberal, commented, "Amidst the challenging economic and market conditions, our revenue experienced a decline in the first half of fiscal year 2024, primarily due to the conclusion of two technological consulting projects for smart campus solutions. Despite these challenges, we successfully maintained a relatively stable revenue stream from our core tailored job readiness training services, which remains the backbone of our income. We are also pleased to report a resurgence in revenue from the sales of textbooks and course materials. Additionally, we sustained a strong gross margin of
First Six Months of Fiscal Year 2024 Financial Summary
For the Six Months Ended June 30, | ||||||
($ millions, except for percentages or per share data) | 2024 | 2023 | %Change | |||
Revenue | 0.89 | 1.36 | (34.8 %) | |||
Gross profit | 0.75 | 0.86 | (12.6 %) | |||
Gross margin | 84.8 % | 63.2 % | 21.5pp | |||
Loss from operations | (4.56) | (0.74) | 515.7 % | |||
Net (loss) income | (4.72) | 0.38 | NM | |||
Basic and diluted (loss) earnings per share | (2.04) | 0.18 | NM | |||
Note: pp represents percentage points; NM represents not meaningful.
- Revenue was
$0.89 million for the six months ended June 30, 2024, compared to $1.36 million for the same period of last year. - Gross profit was
$0.75 $0.86 - Gross margin was
84.8% for the six months ended June 30, 2024, increased by21.5% from63.2% for the same period of last year. - Loss from operations was
$4.56 million for the six months ended June 30, 2024, compared to income from operations of$0.74 million for the same period of last year. - Net loss was
$4.72 million for the six months ended June 30, 2024, compared to net income of$0.38 - Basic and diluted loss per share were
$2.04 for the six months ended June 30, 2024, compared to basic and diluted earnings per share of$0
First Six Months of Fiscal Year 2024 Financial Results
Revenue
Revenue decreased by
Revenue from tailored job readiness training services decreased by
Revenue from providing smart campus related technological consulting service decreased by
In order to ensure the quality of course content delivered to students and to meet international standards, the Company developed, edited, and published 12 English textbooks and course materials with an emphasis on language training, and distributed these materials to students enrolled with Fuzhou Melbourne Polytechnic, a three-year college in
Cost of Revenues
Cost of revenue decreased by
Gross Profit
Gross profit decreased by
Allowance for Doubtful Accounts
The Company maintain allowance for doubtful accounts for estimated losses. The Company review accounts receivable on a periodic basis and make general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company consider various factors, including the age of the balance, customer's payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. Allowance for doubtful accounts was
Operating Expenses
Selling expenses decreased by
General and administrative expenses increased by
Interest Expenses
Interest expenses increased by
Government Subsidy Income
Government subsidy income increased by
Other (Expense) Income, Net
Other expenses increased by
Income Tax Expenses
Income tax expenses were nil and
Net (Loss) Income
Net loss was
Financial Condition
As of June 30, 2024, the Company had cash of
Net cash used in operating activities was
Net cash provided by investing activities was
Net cash provided by financing activities was
About China Liberal Education Holdings Limited
China Liberal is an educational services provider headquartered in Beijing, China. China Liberal provides a wide range of services, including technological consulting for Chinese universities to improve their campus information and data management systems, designed to enhance the teaching, operating, and management environment of the universities, thus establishing a "smart campus." Additionally, China Liberal offers tailored job readiness training for graduating students. For more information, please visit the Company's website at http://ir.chinaliberal.com/.
Forward-Looking Statements
This document contains forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's expectations and projections about future events, which the Company derives from the information currently available to the Company. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those using terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. When evaluating these forward-looking statements, you should consider various factors, including our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as required by law. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can provide no assurance that these expectations will prove to be accurate, and it cautions investors that actual results may differ materially from the anticipated results. Investors are encouraged to review the risk factors that may affect future results in the Company's most recent annual report on Form 20-F for the year ended December 31, 2023 and in its other filings with the
Investor Relations Contact
China Liberal Education Holdings Limited
Email: ir@chinaliberal.com
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1 646-932-7242
Email: investors@ascent-ir.com
China Liberal Education Limited | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
As of June 30, | As of December 31, | |||||||
2024 | 2023 | |||||||
ASSETS | (Unaudited) | |||||||
CURRENT ASSETS | ||||||||
Cash | $ | 84,147,075 | $ | 20,337,847 | ||||
Accounts receivable, net | 1,462,571 | 1,453,230 | ||||||
Advance to suppliers | 322,331 | 3,521,176 | ||||||
Inventories, net | 144,862 | 167,493 | ||||||
Prepaid expenses and other current assets, net | 99,954 | 114,732 | ||||||
Receivable from disposal of subsidiaries | - | 40,000,000 | ||||||
TOTAL CURRENT ASSETS | $ | 86,176,793 | $ | 65,594,478 | ||||
NON-CURRENT ASSETS | ||||||||
Goodwill on acquisitions | 6,747,543 | 6,747,543 | ||||||
Property and equipment, net | 3,275 | 5,157 | ||||||
Intangible assets, net | 312,836 | 351,680 | ||||||
Right-of-use assets | 70,987 | 102,509 | ||||||
TOTAL NON-CURRENT ASSETS | $ | 7,134,641 | $ | 7,206,889 | ||||
TOTAL ASSETS | $ | 93,311,434 | $ | 72,801,367 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Account payables | $ | 432,261 | $ | 571,432 | ||||
Contract liabilities | - | 212,473 | ||||||
Short-term bank loan | 437,154 | 32,191 | ||||||
Taxes payable | 1,185,754 | 1,438,658 | ||||||
Due to related parties | 679,730 | 1,395,225 | ||||||
Lease liabilities | 65,799 | 63,410 | ||||||
Loans from third parties | 1,668,053 | 1,589,702 | ||||||
Accrued expenses and other current liabilities | 835,992 | 928,816 | ||||||
TOTAL CURRENT LIABILITIES | $ | 5,304,743 | $ | 6,231,907 | ||||
NON-CURRENT LIABILITY | ||||||||
Lease liabilities | - | 32,525 | ||||||
TOTAL NON-CURRENT LIABILITY | - | 32,525 | ||||||
TOTAL LIABILITIES | $ | 5,304,743 | $ | 6,264,432 | ||||
COMMITMENTS AND CONTINGENCIES | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, | $ | 432,250 | $ | 5,028 | ||||
Additional paid-in capital* | 97,861,862 | 72,142,580 | ||||||
Statutory reserve | 1,006,384 | 1,006,384 | ||||||
Accumulated deficits | (11,511,722) | (6,786,949) | ||||||
Accumulated other comprehensive income | 217,917 | 169,892 | ||||||
Total shareholders' equity | $ | 88,006,691 | $ | 66,536,935 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 93,311,434 | $ | 72,801,367 | ||||
* On January 19, 2024, the Company consolidated its ordinary shares of fifteen (15) ordinary shares with par value | ||||||||
China Liberal Education Holdings Limited | ||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||
(Unaudited) | ||||||||
For the six months end June 30, | ||||||||
2024 | 2023 | |||||||
REVENUE | $ | 885,804 | $ | 1,358,617 | ||||
COST OF REVENUE | (135,008) | (499,788) | ||||||
GROSS PROFIT | 750,796 | 858,829 | ||||||
OPERATING EXPENSES | ||||||||
Allowance for doubtful accounts | (2,563,577) | (24,554) | ||||||
Selling expenses | (44,662) | (111,098) | ||||||
General and administrative expenses | (2,700,351) | (1,463,385) | ||||||
Total operating expenses | (5,308,590) | (1,599,037) | ||||||
LOSS FROM OPERATIONS | (4,557,794) | (740,208) | ||||||
OTHER (EXPENSES) INCOME | ||||||||
Interest income | 562 | 975 | ||||||
Interest expenses | (162,884) | (119,479) | ||||||
Government subsidy income | 50,891 | - | ||||||
Other (expense) income, net | (55,548) | 262,403 | ||||||
Total other (expenses) income, net | (166,979) | 143,899 | ||||||
Loss before income taxes | (4,724,773) | (596,309) | ||||||
Income tax expenses | - | (1,966) | ||||||
Net loss from continuing operations | (4,724,773) | (598,275) | ||||||
Net income from discontinued operations | - | 974,486 | ||||||
Net (loss) income | (4,724,773) | 376,211 | ||||||
COMPREHENSIVE INCOME (LOSS) | ||||||||
Total currency translation differences arising from consolidation | 48,025 | 57,460 | ||||||
TOTAL COMPREHENSIVE (LOSS) INCOME | $ | (4,676,748) | $ | 433,671 | ||||
(Loss) earnings per share | ||||||||
Basic and diluted | $ | (2.04) | $ | 0.18 | ||||
Weighted average number of shares outstanding | ||||||||
Basic and diluted | 2,321,643 | 2,106,556 | ||||||
China Liberal Education Holdings Limited | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
For the six months ended June 30, | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities | ||||||||
Net (loss) income | $ | (4,724,773) | $ | 376,211 | ||||
Net income from discontinued operations | - | 974,486 | ||||||
Net loss from continuing operations | $ | (4,724,773) | $ | (598,275) | ||||
Adjustments to reconcile net (loss) income to net cash provided by | ||||||||
Allowance for accounts receivable | 4,510 | (53,507) | ||||||
Allowance for inventory | - | 3,645 | ||||||
Allowance for prepaid expenses and other current assets | (16,631) | 78,061 | ||||||
Depreciation of property and equipment | 1,776 | 6,491 | ||||||
Amortization of intangible assets | 30,967 | 32,064 | ||||||
Non-cash lease expenses | 29,371 | - | ||||||
Share-based compensation | 1,256,504 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (47,612) | 326,605 | ||||||
Advance to suppliers | 3,140,123 | - | ||||||
Inventories, net | 18,910 | - | ||||||
Prepaid expenses and other current assets | 29,328 | (99,391) | ||||||
Accounts payable | (126,919) | (416,048) | ||||||
Contract liabilities | (186,045) | (886,852) | ||||||
Taxes payable | (221,359) | 66,186 | ||||||
Lease liabilities | (28,128) | 2,197 | ||||||
Accrued expenses and other current liabilities | (442,768) | (186,021) | ||||||
Net cash used in operating activities from continuing operations | (1,282,746) | (1,724,845) | ||||||
Net cash used in operating activities from discontinued operations | - | (3,364,997) | ||||||
Net cash used in operating activities | (1,282,746) | (5,089,842) | ||||||
Cash flows from investing activities | ||||||||
Other receivable | 40,000,000 | - | ||||||
Net cash provided by investing activities from continuing operations | 40,000,000 | - | ||||||
Net cash used in investing activities from discontinued operations | - | (64,586) | ||||||
Net cash provided by (used in) investing activities | 40,000,000 | (64,586) | ||||||
Cash flows from financing activities | ||||||||
Repayment of advances from a related party | (198,470) | (5,563) | ||||||
Proceeds from loans from third parties | 519,160 | 1,252,108 | ||||||
Repayment of loans from third parties | (553,808) | - | ||||||
Proceeds from short-term bank loans | 412,736 | - | ||||||
Net proceeds from issuance of ordinary shares | 24,890,000 | - | ||||||
Net cash provided by financing activities from continuing | 25,069,618 | 1,246,545 | ||||||
Net cash provided by financing activities from discontinued operations | - | 2,459,821 | ||||||
Net cash provided by financing activities | 25,069,618 | 3,706,366 | ||||||
Effect of changes of foreign exchange rates on cash | 22,356 | (34,351) | ||||||
Net increase (decrease) in cash | 63,809,228 | (1,482,413) | ||||||
Cash, beginning of period | 20,337,847 | 13,650,071 | ||||||
Cash, end of period | $ | 84,147,075 | $ | 12,167,658 | ||||
Reconciliation of cash, beginning of period | ||||||||
Cash from continuing operations | $ | 20,337,847 | $ | 12,121,824 | ||||
Cash from discontinued operations | - | 1,528,247 | ||||||
Cash, beginning of period | $ | 20,337,847 | $ | 13,650,071 | ||||
Reconciliation of cash, end of period | ||||||||
Cash from continuing operations | $ | 84,147,075 | $ | 11,646,021 | ||||
Cash from discontinued operations | - | 521,637 | ||||||
Cash, end of period | $ | 84,147,075 | $ | 12,167,658 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest expense | - | - | ||||||
Cash paid for income tax | - | 2,324 | ||||||
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SOURCE China Liberal Education Holdings Limited
FAQ
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