Good future Q2 net profit 30.5 million USD appoint Cool 6 shanyou as Director

NetEase technology News October 21, a good Future (NYSE:XRS) released today as at August 31, 2014, the second quarter of fiscal year 2015 unaudited financial report. Earnings showed a good future in the second quarter of the net income of 122.4 million U.S. dollars, an increase of 33.1%, operating profit of 30.5 million U.S. dollars, year-on-year growth of 24.8%.

The quarterly net profit, which belongs to a good future, grew 24.8% from a year earlier; the quarterly net profit for non-US accounting standards, which belongs to the good future, grew 32.5% from a year earlier.

Fiscal year 2015 second quarter results summary:

Net income rose from $92 million a year earlier to $122.4 million in the current quarter, up 33.1% per cent.

Operating profits grew from $24.4 million a year earlier to $30.5 million in the current quarter, up 24.8% per cent.

Net profits, which belong to the good future, grew from $23.3 million a year earlier to $29.1 million in the current quarter, an increase of 24.8%.

Non-US accounting standards for the good future (regardless of equity incentive fees) grew from $25.1 million a year earlier to $33.3 million in the current quarter, by 32.5%.

Basic and diluted revenue per ADS are 0.37 dollars and 0.34 dollars respectively. Non-US GAAP basic and diluted earnings per ADS are 0.42 US dollars and 0.39 dollars respectively. Each ads equals two shares of Class A common.

The total balance of cash, cash equivalents and term deposits as at August 31, 2014 was USD 526.8 million and the balance as at February 28, 2014 was USD 269.9 million.

The total number of students increased from about 308,490 a year earlier to about 407,970 in the quarter, up 32.2% per cent year-on-year.

As at August 31, 2014 There are 287 teaching centres in the future, more than 285 as at May 31, 2014.

Good future chairman and chief Executive Zhang Bangxin said: "Two quarterly revenue and profits are in line with expectations, in line with the expected growth and strategic objectives for the current fiscal year." We established a teaching center in Changsha in June, which paved the net for a good future teaching network to 19 cities, and achieved a net increase of 270 small class classrooms in the two quarter. Small-class income in cities outside Beijing and Shanghai accounted for 48% of total small-class income, compared with 44% in the previous quarter and 35% for the same period last year. ”

"At the same time we will continue to make strategic investments," Zhang Bangxin said. Recently led the China Investment Consortium, including the Minerva Fund and the Chung Jin Group, to participate in the B-round financing of project in Silicon Valley. This investment has brought us to the K12 of education and to new educational technologies that can help us think about the development of our own educational programs. We will continue to look for more investment opportunities in China and around the world to complement and enhance our core business. ”

Joseph Kauffman, the future chief financial officer, added: "Despite the increase in the number of shares on the basis of the convertible bonds issued in May 2014, we are still pleased to see that our net profit is $29.1 million trillion, and completely diluted on the basis of the revenue per ADS to reach 0.34 U.S. dollars. As we continue to increase our gross profit margins, we also see the acceleration of investment in new business and new products driving up market and sales costs and overheads. The reasons for the increase include: research and development for ICS 3.0 and other projects, the increased marketing costs for small-class enrollment, and the combination of offline and mobile learning, and the increasing cost of mobile apps, renaming parents to help communities, and spending on new talent, especially in the emerging online and mobile-side business sectors. In the second half of the fiscal year, we plan to deploy more resources to support the development of new products and services.

Management and board Adjustment

From November 1, 2014 onwards, Mr. Joseph Kauffman will step down as the future chief financial officer, who has been in office since June 2010. The company has appointed Mr. Kauffman as Director of the Board on October 17, 2014, and Mr. Kauffman will continue to serve as Director of the post of chief financial officer.

The Board of Trustees has appointed Mr. Rogen as chief financial officer and entered into force on November 1, 2014. Before joining the future, Mr. Luo is the chief financial officer of China's leading mobile and online travel service provider, Dragon Limited. Previously, Lenovo Group's senior finance manager (China region). Prior to joining Lenovo, Mr. Luo worked in the Microsoft Finance team in Beijing and Seattle. Mr. Luo holds a double degree in economics and information management systems at Peking University and a master's degree in Management Science and engineering from Tsinghua University.

The board has appointed Mr. Shanyou as director and Chairman of the remuneration committee and has entered into force on October 17, 2014. Mr. Li is an adjunct professor of entrepreneurship at Ceibs and the executive director of the Central European Venture and Investment Centre (CEIBS). Prior to joining Ceibs in 2011, he established 酷6网 Limited in 2006 and led the company to the Nasdaq listing in 2011. Before the establishment of 酷6网 Co., Ltd., Mr. Li was a senior vice president and editor-in-chief of Sohu Co., Ltd. Mr. Li holds a bachelor's degree in mathematics from Nankai University and an EMBA from Ceibs. Mr. Li Shanwen has replaced Mr. Chen as director of the company and has entered into force on October 17, 2014. (Wang Yiyu)