The following is a summary of the First High-School Education Group Co., Ltd. (FHSEY) Q4 2023 Earnings Call Transcript:
Financial Performance:
First High-School Education Group saw a significant decline in revenues by 22.3% to RMB 266.3 million in 2023, primarily due to decreases in revenues from government cooperative agreements and education materials sales.
The group's gross profit decreased by 44.7% to RMB 71.3 million with a gross margin of 26.8%.
A net loss of RMB 70.6 million was recorded for the fiscal year of 2023, largely driven by an asset impairment loss of RMB 52.1 million and decreased income from operations.
Business Progress:
In response to challenges in operating new schools, the company shifted its focus towards school management services, expanding its service programme by four schools in 2023 and increasing students under management to 31,928.
The company faced difficulty in raising tuition and saw a decline in the sale of educational materials and income from meal catering services. To mitigate, optimization of staff and administrative costs are being pursued.
The company is actively working to resolve payment collection issues with local governments.
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