Jianzhi Education Technology Group Company Limited (the “Company”
or “Jianzhi”) (NASDAQ: JZ), a leading provider of digital
educational content in China, today announced its financial results
for six months ended June 30, 2024.
- Revenue
decreased by 25.4% from RMB280.6 million for the six months ended
June 30, 2023 to RMB 209.3 million (US$28.8 million) for the six
months ended June 30, 2024.
- Gross profit was
RMB 41.7 million (US$5.7 million) and RMB 23.9 million for the six
months ended June 30, 2024 and 2023.
- Gross profit
margin rose to 19.9% for the six months ended June 30, 2024 from
8.5% for the six months ended June 30, 2023.
- Net income was
RMB27.6 million (US$3.8 million) for the six months ended June 30,
2024, a turnaround from net loss of RMB93.6 million for the same
period in 2023.
- The following
table sets forth a summary of the consolidated results of
operations for the years indicated:
|
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
|
RMB |
|
|
RMB |
|
|
% Change |
|
|
|
(in million, except for percentages) |
|
Revenue |
|
280.6 |
|
|
|
209.3 |
|
|
|
(25.4 |
%) |
|
Gross profit |
|
|
23.9 |
|
|
|
|
41.7 |
|
|
|
|
74.5 |
% |
|
Gross margin |
|
|
8.5 |
% |
|
|
|
19.9 |
% |
|
|
|
11.4 percentage points |
|
|
Total operating expenses |
|
|
(115.3 |
) |
|
|
|
(16.1 |
) |
|
|
|
(86.0 |
%) |
|
(Loss) income from operations |
|
|
(91.3 |
) |
|
|
|
25.6 |
|
|
|
|
128.0 |
% |
|
(loss) income before income tax |
|
|
(91.3 |
) |
|
|
|
25.3 |
|
|
|
|
127.7 |
% |
|
Net (loss) income |
|
|
(93.6 |
) |
|
|
|
27.6 |
|
|
|
|
129.5 |
% |
|
Mr. Yong Hu, CEO of the Company, commented: “In
the first half of 2024, we faced a 25.4% decline in net revenues,
which was primarily driven by lower demand for IT-related solutions
and educational content services. However, we view this as a
strategic opportunity for improvement.”
“Notably, we successfully reduced our cost of
revenue by 34.7%, bringing it down to RMB167.6 million (US$23.1
million). This cost management initiative allowed us to achieve a
gross profit of RMB41.7 million (US$5.7 million), resulting in a
positive gross profit margin of 19.9%, a significant growth from
8.5% of the previous year.”
“Our focus on operational efficiency is
reflected in the reduction of operating expenses, which has
contributed to our impressive transition from a net loss of RMB93.6
million in first half of 2023 to a net income of RMB27.6 million
(US$3.8 million) during same period in 2024. This shift underscores
our commitment to enhancing profitability and positioning the
Company for sustainable growth moving forward.”
“Looking ahead, we are rolling out several key
initiatives including a partnership with China’s top telecom
operator to boost our B2B operations across multiple provinces, as
we target to acquire massive paying users within the next three
years. The partnership will offer various subscription plans, which
we believe projects strong revenue and profit margins. Moreover, we
are also expanding the partnership into AI applications that will
initially target the education sector before expanding to other
applications such as research institutions, public libraries to
further enhance user engagement with our services.”
“We remain optimistic about our future
strategies and are dedicated to leveraging our strengths to
navigate the challenges ahead.”
Half Year 2024 Financial Results:
Net revenues
Revenues decreased by 25.4% from
RMB280.6 million for the six months ended June 30, 2023 to RMB
209.3 million (US$28.8 million) for the six months ended
June 30, 2024. This decrease was primarily driven by the net
effects of a decrease of RMB53.4 million in net revenues
from the provision of IT related solution services, and a decrease
of RMB17.9 million in revenue generated from educational
content services and other services.
- Net revenue from
the educational content service and other services
decreased by RMB17.9 million from RMB28.5 million for the six
months ended June 30, 2023 to RMB10.6 million (US$1.5 million) for
the six months ended June 30, 2024 primarily caused by a decrease
of revenue by RMB16.5 million (US$2.3 million) in Fish Learning.
Such decrease in revenues were primarily because we did not provide
new and attractive contents on the platform leading to decreased
subscriptions from end customers.
- Net revenue
from IT related solution services decreased by
RMB53.4 million (US$7.3 million), or 21.2% from RMB 252.1 million
for the six months ended June 30, 2023 to RMB 198.7 million
(US$27.3 million) for the six months ended June 30, 2024. The
decrease was primarily caused by a decrease in customer orders for
design and development of customized IT system, and procurement and
assembling of equipment.
Cost of Revenues
Cost of revenue decreased by 34.7% from RMB256.7
million for the six months ended June 30, 2023, to RMB 167.6
million (US$23.1 million) for the six months ended June 30, 2024.
The decrease was primarily attributable to the decrease of RMB27.4
million in amortization of educational and decrease of RMB57.7
million in purchase of IT equipment for IT related solution
services, partially offset by an increase of RMB14.7 million in
material costs used for educational content service and other
services with decreased subscriptions from end customers and
decreased orders from high schools.
Compared with the decrease in revenues growth,
the higher percentage of decrease in cost of revenues was mainly
attributable to the higher gross profit we earned from IT solution
services in the first half of 2024 as compared with the same period
of 2023.
Gross Profit
Gross profit was RMB 23.9 million and RMB 41.7
million (US$5.7 million) for the six months ended June 30, 2023 and
2024, respectively. The Company’s gross profit margin changed from
8.5% for the six months ended June 30, 2023 to 19.9% for the six
months ended June 30, 2024.
The change was mainly due to an increase in the
gross profits margin for IT related solution services for the first
half 2024, because the Company was primarily engaged in IT design
and development services for customers in the first half of 2024,
as compared with procurement and assembling equipment projects in
the same period of 2023. The profit margin was higher in IT design
and development services than procurement and assembling equipment
projects.
Operating expenses
The Company’s total operating expenses changed
from RMB115.3 million for the six months ended June 30, 2023 to
RMB16.1 million (US$2.2 million) for the six months ended June 30,
2024.
- Sales and
marketing expenses decreased from RMB3.9 million for the six months
ended June 30, 2023 to RMB2.5 million (US$0.3 million) for the six
months ended June 30, 2024.
- General and
administrative expenses increased from RMB9.6 million for the six
months ended June 30, 2023 to RMB10.5 million (US$1.4 million) for
the six months ended June 30, 2024.
- Research and
development expenses decreased from RMB4.4 million for the six
months ended June 30, 2023 to RMB3.1 million (US$0.4 million) for
the six months ended June 30, 2024.
- The Company
provided impairment of educational contents of RMB97.3 million for
the six months ended June 2023, and nil during the same period in
2024.
Net income (loss)
As a result of the foregoing, the Company
reported net loss of RMB93.6 million and net income of RMB27.6
million (US$3.8 million) for the six months ended June 30, 2023 and
2024, respectively.
About Jianzhi Education Technology Group Company
Limited
Headquartered in Beijing and established in
2011, Jianzhi is a leading provider of digital educational content
in China and has been committed to developing educational content
to fulfill the massive demand for high-quality, professional
development training resources in China. Jianzhi started operations
by providing educational content products and IT services to higher
education institutions. Jianzhi also provides products to
individual customers. Leveraging its strong capabilities in
developing proprietary professional development training content
and success in consolidating educational content resources within
the industry, Jianzhi has successfully built up a comprehensive,
multi-dimensional digital educational content database which offers
a wide range of professional development products. Jianzhi embeds
proprietary digital education content into the self-developed
online learning platforms, which are provided to a wide range of
customers through its omni-channel sales system. Jianzhi is also
fully committed to the digitalization and informatization of the
education sector in China. For more information, please visit:
www.jianzhi-jiaoyu.com
Safe Harbor Statement
This press release contains statements that may
constitute “forward-looking” statements pursuant to the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “likely to,”
and similar statements. Statements that are not historical facts,
including statements about the Company’s beliefs, plans, and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding these and other risks is included in the
Company’s filings with the SEC. All information provided in this
press release is as of the date of this press release, and the
Company does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please
contact:
Janice Wang Wealth Financial Services LLC Phone: +86 13811768559
+1 628 283 9214 Email: services@wealthfsllc.com
JIANZHI EDUCATION TECHNOLOGY GROUP COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in Renminbi (“RMB”) and U.S.
dollars (“US$”),except for number of shares and
per share data) |
|
|
|
|
|
December 31,2023 |
|
|
June 30,2024 |
|
|
June 30,2024 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash |
|
|
18,175,959 |
|
|
|
13,115,287 |
|
|
|
1,804,724 |
|
Accounts receivable, net |
|
|
4,912,020 |
|
|
|
76,240,194 |
|
|
|
10,491,000 |
|
Amount due from related parties |
|
|
2,172,565 |
|
|
|
1,115,565 |
|
|
|
153,507 |
|
Short-term prepayments |
|
|
77,950,037 |
|
|
|
1,965,969 |
|
|
|
270,526 |
|
Short-term investments |
|
|
4,223,894 |
|
|
|
7,648,722 |
|
|
|
1,052,499 |
|
Prepaid expenses and other current assets |
|
|
14,914,484 |
|
|
|
10,534,089 |
|
|
|
1,449,538 |
|
Total current assets |
|
|
122,348,959 |
|
|
|
110,619,826 |
|
|
|
15,221,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Right-of-use assets, net |
|
|
7,604,933 |
|
|
|
5,903,758 |
|
|
|
812,384 |
|
Deferred tax assets, net |
|
|
11,226,164 |
|
|
|
13,518,156 |
|
|
|
1,860,160 |
|
Property and equipment, net |
|
|
213,369 |
|
|
|
183,032 |
|
|
|
25,186 |
|
Intangible assets, net |
|
|
1,257,860 |
|
|
|
1,106,916 |
|
|
|
152,317 |
|
Other non-current assets |
|
|
219,416 |
|
|
|
176,949 |
|
|
|
24,349 |
|
Long-term prepayments |
|
|
8,815,919 |
|
|
|
18,059,668 |
|
|
|
2,485,093 |
|
Total non-current assets |
|
|
29,337,661 |
|
|
|
38,948,479 |
|
|
|
5,359,489 |
|
Total assets |
|
|
151,686,620 |
|
|
|
149,568,305 |
|
|
|
20,581,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
11,524,904 |
|
|
|
66,456,088 |
|
|
|
9,144,662 |
|
Contract liabilities |
|
|
86,731,977 |
|
|
|
13,108,638 |
|
|
|
1,803,809 |
|
Salary and welfare payable |
|
|
3,170,255 |
|
|
|
1,962,572 |
|
|
|
270,059 |
|
Income taxes payable |
|
|
4,474,575 |
|
|
|
2,603,097 |
|
|
|
358,198 |
|
Value added tax (“VAT”) and other tax payable |
|
|
2,198,217 |
|
|
|
4,315,792 |
|
|
|
593,873 |
|
Other payables |
|
|
3,506,282 |
|
|
|
1,873,102 |
|
|
|
257,747 |
|
Lease liabilities, current |
|
|
3,482,876 |
|
|
|
3,027,011 |
|
|
|
416,531 |
|
Amount due to related parties |
|
|
47,505,624 |
|
|
|
480,902 |
|
|
|
66,174 |
|
Total current liabilities |
|
|
162,594,710 |
|
|
|
93,827,202 |
|
|
|
12,911,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities |
|
|
2,274,256 |
|
|
|
2,336,341 |
|
|
|
321,491 |
|
Lease liabilities, non-current |
|
|
4,035,598 |
|
|
|
2,790,522 |
|
|
|
383,989 |
|
Total non-current liabilities |
|
|
6,309,854 |
|
|
|
5,126,863 |
|
|
|
705,480 |
|
Total liabilities |
|
|
168,904,564 |
|
|
|
98,954,065 |
|
|
|
13,616,533 |
|
JIANZHI EDUCATION TECHNOLOGY GROUP COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS — (Continued)(Amounts in Renminbi (“RMB”)
and U.S. dollars (“US$”),except for number of
shares and per share data) |
|
|
|
|
|
December 31,2023 |
|
|
June 30,2024 |
|
|
June 30,2024 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ (deficit) equity |
|
|
|
|
|
|
|
|
|
Ordinary shares (US$0.0001 par value; 500,000,000 shares
authorized, 121,110,000 and 121,110,000 issued and outstanding as
of December 31, 2023 and June 30, 2024) |
|
|
77,747 |
|
|
|
77,747 |
|
|
|
12,111 |
|
Additional paid-in capital |
|
|
238,567,906 |
|
|
|
278,748,454 |
|
|
|
39,129,453 |
|
Statutory reserves |
|
|
23,557,710 |
|
|
|
23,557,710 |
|
|
|
3,318,034 |
|
Accumulated deficit |
|
|
(291,805,140) |
|
|
|
(264,741,760) |
|
|
|
(37,375,863) |
|
Accumulated other comprehensive income |
|
|
6,096,465 |
|
|
|
6,124,383 |
|
|
|
938,739 |
|
Total Jianzhi Education Technology Group Company Limited’s
shareholders’ (deficit) equity |
|
|
(23,505,312) |
|
|
|
43,766,534 |
|
|
|
6,022,474 |
|
Noncontrolling interests |
|
|
6,287,368 |
|
|
|
6,847,706 |
|
|
|
942,276 |
|
Total shareholders’ (deficit) equity |
|
|
(17,217,944) |
|
|
|
50,614,240 |
|
|
|
6,964,750 |
|
Total liabilities and shareholders’ (deficit) equity |
|
|
151,686,620 |
|
|
|
149,568,305 |
|
|
|
20,581,283 |
|
JIANZHI EDUCATION TECHNOLOGY GROUP COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE (LOSS)
INCOME(Amounts in Renminbi (“RMB”) and U.S.
dollars (“US$”) except for number of shares and per share
data) |
|
|
|
|
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net revenues |
|
|
280,606,379 |
|
|
|
209,303,030 |
|
|
|
28,801,055 |
|
Cost of revenues |
|
|
(256,660,584) |
|
|
|
(167,646,023) |
|
|
|
(23,068,861) |
|
Gross profit |
|
|
23,945,795 |
|
|
|
41,657,007 |
|
|
|
5,732,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
|
(3,943,550) |
|
|
|
(2,459,869) |
|
|
|
(338,489) |
|
General and administrative expenses |
|
|
(9,581,756) |
|
|
|
(10,513,568) |
|
|
|
(1,446,722) |
|
Research and development expenses |
|
|
(4,412,218) |
|
|
|
(3,121,624) |
|
|
|
(429,550) |
|
Impairment of intangible assets |
|
|
(97,332,087) |
|
|
|
— |
|
|
|
— |
|
Total operating expenses |
|
|
(115,269,611) |
|
|
|
(16,095,061) |
|
|
|
(2,214,761) |
|
(Loss) income from operations |
|
|
(91,323,816) |
|
|
|
25,561,946 |
|
|
|
3,517,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
|
|
60,649 |
|
|
|
13,739 |
|
|
|
1,891 |
|
Interest expenses, net |
|
|
(701,899) |
|
|
|
(467,320) |
|
|
|
(64,305) |
|
Other (expenses) income, net |
|
|
(16,781) |
|
|
|
22,641 |
|
|
|
3,116 |
|
Government grants |
|
|
643,646 |
|
|
|
139,236 |
|
|
|
19,160 |
|
Total other expenses, net |
|
|
(14,385) |
|
|
|
(291,704) |
|
|
|
(40,138) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax |
|
|
(91,338,201) |
|
|
|
25,270,242 |
|
|
|
3,477,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefits |
|
|
(2,238,882) |
|
|
|
2,353,476 |
|
|
|
323,849 |
|
Net (loss) income |
|
|
(93,577,083) |
|
|
|
27,623,718 |
|
|
|
3,801,144 |
|
Net (loss) income attributable to noncontrolling interests |
|
|
(2,885,241) |
|
|
|
560,338 |
|
|
|
77,105 |
|
Net (loss) income attributable to the Jianzhi Education Technology
Group Company Limited’s shareholders |
|
|
(90,691,842) |
|
|
|
27,063,380 |
|
|
|
3,724,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
(93,577,083) |
|
|
|
27,623,718 |
|
|
|
3,801,144 |
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
830,133 |
|
|
|
27,918 |
|
|
|
3,842 |
|
Total comprehensive (loss) income |
|
|
(92,746,950) |
|
|
|
27,651,636 |
|
|
|
3,804,986 |
|
Net comprehensive (loss) income attributable to noncontrolling
interests |
|
|
(2,885,241) |
|
|
|
560,338 |
|
|
|
77,105 |
|
Comprehensive (loss) income attributable to the Jianzhi Education
Technology Group Company Limited’s shareholders |
|
|
(89,861,709) |
|
|
|
27,091,298 |
|
|
|
3,727,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share – Basic and diluted |
|
|
(0.75) |
|
|
|
0.22 |
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares - Basic and diluted |
|
|
121,100,000 |
|
|
|
121,110,000 |
|
|
|
121,110,000 |
|
JIANZHI EDUCATION TECHNOLOGY GROUP COMPANY
LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS(Amounts in Renminbi (“RMB”) and U.S.
dollars (“US$”) |
|
|
|
|
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net cash (used in) provided by operating activities |
|
|
(7,630,383) |
|
|
|
10,944,793 |
|
|
|
1,506,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of short-term investments |
|
|
(20,000,000) |
|
|
|
(5,800,000) |
|
|
|
(798,107) |
|
Proceeds from redemption of short-term investment |
|
|
20,000,000 |
|
|
|
2,375,172 |
|
|
|
326,835 |
|
Purchase of property and equipment |
|
|
(319,309) |
|
|
|
— |
|
|
|
— |
|
Return of deposits for property and equipment |
|
|
— |
|
|
|
1,803,140 |
|
|
|
248,120 |
|
Repayment of loans from a related party |
|
|
— |
|
|
|
— |
|
|
|
|
|
Purchase of educational contents |
|
|
(19,184,980) |
|
|
|
(13,445,345) |
|
|
|
(1,493,918) |
|
Loans made to a third party |
|
|
(13,851,828) |
|
|
|
— |
|
|
|
— |
|
Repayment of loans from a third party |
|
|
3,100,833 |
|
|
|
— |
|
|
|
— |
|
Repayment of loans from a related party |
|
|
137,814 |
|
|
|
200,998 |
|
|
|
27,658 |
|
Net cash used in investing activities |
|
|
(30,117,470) |
|
|
|
(14,866,035) |
|
|
|
(2,045,635) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Repayment to related parties |
|
|
(13,257) |
|
|
|
(499,842) |
|
|
|
(68,781) |
|
Net cash used in financing activities |
|
|
(13,257) |
|
|
|
(499,842) |
|
|
|
(68,781) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash held in foreign
currencies |
|
|
1,332,362 |
|
|
|
(639,588) |
|
|
|
(88,001) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash |
|
|
(36,428,748) |
|
|
|
(5,060,672) |
|
|
|
(696,371) |
|
Cash at beginning of the period |
|
|
65,055,278 |
|
|
|
18,175,959 |
|
|
|
2,501,095 |
|
Cash at end of the period |
|
|
28,626,530 |
|
|
|
13,115,287 |
|
|
|
1,804,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flows information: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
|
— |
|
|
|
130,244 |
|
|
|
17,922 |
|
Cash paid for interest expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash Investing and Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Waive of liabilities due by shareholders |
|
|
— |
|
|
|
40,180,548 |
|
|
|
5,529,027 |
|
Right-of-use assets obtained in exchange for operating lease
liabilities |
|
|
8,943,892 |
|
|
|
5,817,299 |
|
|
|
800,487 |
|
Jianzhi Education Techno... (NASDAQ:JZ)
Historical Stock Chart
From Dec 2024 to Jan 2025
Jianzhi Education Techno... (NASDAQ:JZ)
Historical Stock Chart
From Jan 2024 to Jan 2025