HANGZHOU, China, Jan. 12, 2017 /PRNewswire/ -- Hailiang Education Group Inc. (Nasdaq: HLG) ("Hailiang Education" or the "Company"), a provider of private K-12 educational services in China, today released a letter to shareholders from the chairman of the Company's board of directors.
The end of fiscal 2016 marked the completion of the first full fiscal year since our successful IPO in July 2015. In fiscal 2016, thanks to the growing demand for private education in China and our diligent growth strategies, we continued to deliver outstanding learning outcomes for our students, further developed our business and created long-term shareholder value.
As household disposable incomes in China have continued to rise, and families' belief in education as a catalyst for career success has strengthened, more parents and students are seeking high-quality, personalized education services. Additionally, continued strong emphasis on education by the Chinese government as well as multiple macro-factors, have contributed toward a positive policy environment in which we can work to meet this growing demand.
During fiscal 2016, our on-going growth strategy continued to pivot on three key initiatives:
Increasing overall student enrollments, with particular emphasis on our international program enrollment;
Pursuing strategic cross-region expansion opportunities; and
Expanding and upgrading our facilities.
We are delighted to end fiscal 2016 with multiple achievements recorded for these growth initiatives.
Increasing Overall Student Enrollments
As announced on September 26, 2016, we began the 2016-2017 academic year on a high note by reaching a total student enrollment of 20,040 students, an 11.7% increase from the same period in 2015. Our international program's starting enrollment grew by 43.7% year-over-year to 2,456 students. The rapid growth of our international program was fueled in large part by growing demand for international education as well as our outstanding brand reputation, which is supported by the superior learning outcomes we work to provide. We are very pleased that 223 students graduated from our international program in the 2015-2016 academic year, with more than half receiving admission offers from leading international universities.
With our high-quality courses delivered by outstanding teachers in a state-of-the-art learning environment, we are actively working to grow our international program by broadening our curriculum. In the near future we plan to offer foreign language courses in French, German and Italian, which will complement our existing foreign language programs in English, Japanese, Korean and Spanish. We are also working to optimize our talent bench of teachers and administrators.
Pursuing Strategic Cross-Region Expansion Opportunities
In 2016, we began work on our second growth initiative, which is to establish and acquire new schools and build Public-Private Partnerships, in which we provide education management services to public schools. We are continuing to identify and evaluate growth opportunities in new markets that meet our criteria, namely established K-12 schools in tier 1 and tier 2 cities and also those located in developed pockets within lower-tier cities. Our asset-light business model enables us to expand with lower capital requirements and provides higher flexibility in utilizing available cash and other financial resources.
Expanding and Upgrading Our Existing Facilities
Our Hailiang Education Park, located in Zhuji city, celebrated its first year anniversary in September 2016. This world-class facility provides a solid platform from which we can implement our well-designed education system and help students more effectively achieve their academic goals. This campus is also a testament to our belief that superior learning outcomes are more effectively attained in a positive education environment with high-quality facilities. We are proud of this new campus and this model is attracting nationwide attention.
In fiscal 2016 we enjoyed solid financial performance. In fiscal 2016, revenue from the basic educational program was RMB531.7 million and revenue from the international program was RMB122.4 million, a 22.8% and 49.8% increase respectively, from fiscal 2015. Although our margins and bottom line for fiscal 2016 were negatively impacted by increased expenses related to our new Hailiang Education Park, we are confident to maintain the impressive growth momentum in fiscal 2017 and improve our long-term profitability.
As a leading provider of private K-12 educational services in China, our goal is to provide students with a foundation in the humanities that fosters a global mindset and inspires them to make a difference to the world.
On behalf of Hailiang Education Group, I would like to thank you for your support in helping us work toward this goal. Together with you, our shareholders, we believe Hailiang Education Group will become a pace-setter in private education, both nationally and internationally.
Wishing you and your family a healthy and joyful 2017!
Chairman and Chief Executive Officer
Hailiang Education Group Inc.
About Hailiang Education
Founded in 1995, Hailiang Education operates three centrally managed schools in Zhuji city, Zhejiang province: Hailiang Foreign Language School, Zhuji Private High School and Tianma Experimental School. Hailiang Education Park, the Company's newest campus, was opened in September 2015 and represents Hailiang Education's commitment in delivering comprehensive and high-quality educational programs. Hailiang Education offers a variety of educational programs, including basic educational programs and international programs at the kindergarten, primary school, middle school, and high school levels, as well as preparatory courses designed for university-bound students studying for A-level courses in the United Kingdom and the SAT examination in the United States.
For more information, please visit http://ir.hailiangedu.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's business strategies and initiatives as well as the Company's business plans; the Company's future business development, results of operations and financial condition; expected changes in the Company's revenue and certain cost or expense items; trends and competition in the education industry in China; general economic and business conditions in China; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.
Mr. Bo Lyu
T: +86 571 5812-2010
Ms. Emilie Wu
The Piacente Group
T: +86 10 6535-0148
Mr. Alan Wang
The Piacente Group
T: +1 212 481-2050