On February 27, Ge Longhui Education (01769.HK) announced that the company expects to record a net profit of not less than RMB 80.0 million for the year ended December 31, 2023, an increase of not less than 47.0% over last year's net profit of RMB 54.4 million.
The board of directors also stressed that the expected net profit for the year has included about RMB 8.0 million in share option benefits (last year: zero) and net loss from the live e-commerce business of approximately RMB 12.0 million (last year: zero), while the live e-commerce business was terminated before the end of 2023, and no significant expenses are expected to be incurred in 2024. In addition to share option benefit expenses and net losses from the live e-commerce business, the Group expects to record adjusted net profit (1) of no less than RMB 100.0 million, an increase of about 83.8% over last year's adjusted net profit of RMB 54.4 million.
The expected net profit for the year is mainly due to (i) the increase in revenue due to the increase in the total number of tutoring hours, (ii) the Group's continuous efforts to improve operating efficiency, resulting in improved operating performance, and (iii) the increase in fair value earnings from financial assets compared to last year.
The Group's main business remained profitable and showed a positive growth trend in 2023. The Group has been actively implementing business transformation in recent years. Since the fall of 2021, the Group has launched a variety of non-subject literacy courses, which have achieved encouraging results. In addition, the Group is also actively exploring new opportunities, including the launch of study tours and international courses. The Group believes that the new business measures will broaden the revenue base and contribute to long-term development.