Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Hailiang Education Group Inc. |
Entity Central Index Key | 1,596,964 |
Current Fiscal Year End Date | --06-30 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Trading Symbol | HLG |
Entity Common Stock, Shares Outstanding | 412,450,256 |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018CNY (¥)¥ / shares | Jun. 30, 2017CNY (¥)¥ / shares | Jun. 30, 2016CNY (¥)¥ / shares | |
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME [Abstract] | |||
Revenue | ¥ 1,169,348 | ¥ 853,295 | ¥ 654,060 |
Cost of revenue | (804,674) | (648,482) | (498,944) |
Gross profit | 364,674 | 204,813 | 155,116 |
Other income, net | 3,689 | 6,325 | 1,756 |
Selling expenses | (24,539) | (21,902) | (16,753) |
Administrative expenses | (63,374) | (28,385) | (36,153) |
Disposal loss of leasehold improvement | 0 | 0 | (10,286) |
Operating profit | 280,450 | 160,851 | 93,680 |
Gain on disposal of affiliated entities | 5,349 | 0 | 0 |
Net finance income | 11,391 | 6,892 | 5,752 |
Profit before tax | 297,190 | 167,743 | 99,432 |
Income tax expenses | (66,288) | 0 | 0 |
Net Profit | 230,902 | 167,743 | 99,432 |
Profit attributable to: | |||
Net Profit attributable to non-controlling interests | 8,314 | 0 | 0 |
Net Profit attributable to the Group's shareholders | 222,588 | 167,743 | 99,432 |
Profit (loss) | ¥ 230,902 | ¥ 167,743 | ¥ 99,432 |
Earnings per share | |||
Basic and diluted earnings per share | (per share) | ¥ 0.54 | ¥ 0.41 | ¥ 0.24 |
Net Profit | ¥ 230,902 | ¥ 167,743 | ¥ 99,432 |
Other comprehensive income/(loss) | (2,542) | 2,202 | 8,437 |
Total comprehensive income | 228,360 | 169,945 | 107,869 |
Comprehensive income attributable to: | |||
Comprehensive income attributable to non-controlling interests | 8,314 | 0 | 0 |
Comprehensive income attributable to the Group's shareholders | 220,046 | 169,945 | 107,869 |
Comprehensive income | ¥ 228,360 | ¥ 169,945 | ¥ 107,869 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |
Assets | |||
Property and equipment, net | ¥ 679,081 | ¥ 720,619 | |
Intangible assets and goodwill, net | 78,747 | 79,599 | |
Prepayments to third party suppliers | 92 | 5,692 | |
Non-current assets | 757,920 | 805,910 | |
Other receivables due from related parties | [1],[2],[3],[4] | 95,128 | 112,773 |
Other current assets | 15,182 | 1,526 | |
Term deposits held at a related party finance entity | [1] | 204,000 | 401,000 |
Cash and cash equivalents | 812,620 | 77,801 | |
Current assets | 1,126,930 | 593,100 | |
Total assets | 1,884,850 | 1,399,010 | |
Equity | |||
Share capital | 268 | 267 | |
Share premium | 134,583 | 134,584 | |
Contributed capital | 235,895 | 235,895 | |
Reserves | 312,667 | 278,044 | |
Retained earnings | 638,246 | 452,823 | |
Total Hailiang Education Group Inc. shareholders' equity | 1,321,659 | 1,101,613 | |
Non-controlling interests | 13,154 | 0 | |
Total equity | 1,334,813 | 1,101,613 | |
Liabilities | |||
Trade and other payables due to third parties | 141,504 | 113,863 | |
Other payables due to related parties | [2],[3],[4],[5],[6] | 138,215 | 124,841 |
Deferred revenue | 212,969 | 58,693 | |
Income tax payable | 57,349 | 0 | |
Current liabilities | 550,037 | 297,397 | |
Total liabilities | 550,037 | 297,397 | |
Total equity and liabilities | ¥ 1,884,850 | ¥ 1,399,010 | |
[1] | As at June 30, 2017 and 2018, the Group has cash in a related party finance entity of RMB61,715 and RMB740,733, respectively. During the years ended June 30, 2016 and 2018, net amount of RMB81,716 and RMB679,018 were placed with Hailiang Finance, respectively. During the year ended June 30, 2017, net amount of RMB109,998 were withdrawn from Hailiang Finance. The cash in a related party finance entity are held for the purpose of meeting short-term cash commitments, such as to pay for the Group’s operating expenses at any time. As at June 30, 2017 and 2018, the Group has term deposits with maturities ranging from three months to less than one year amounting to RMB401,000 and RMB204,000 that are placed at Hailiang Finance, respectively. During the years ended June 30, 2016, 2017 and 2018, term deposits of RMB1,212,430, RMB1,953,600 and RMB204,000 was placed with Hailiang Finance, of which RMB1,272,430, RMB1,552,600 and RMB401,000 matured, respectively. The term deposits are held for investment purpose and can be withdrawn prior to their maturity without incurring significant penalties. Such amounts have been presented as investing activities in the statements of cash flows. The interest income from the deposits during the years ended June 30, 2016, 2017 and 2018 amounted to RMB2,683, RMB5,847 and RMB11,464, respectively. | ||
[2] | During the years ended June 30, 2016, 2017 and 2018, Hailiang Group paid professional service fees and other expenses of RMB3,356, RMB3,836 and RMB4,612 on behalf of the Group, respectively. Such amount is due and payable on demand, and the Group repaid RMB1,782, RMB4,536 and RMB4,124 to Hailiang Group during the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2016, the Group paid RMB11,567 on behalf of Hailiang Hospital for leasehold improvement, the balance has been fully returned to the Group on September 21, 2016. During the year ended June 30, 2018, the Group paid expenses of RMB4,259, RMB2,764, RMB1,016 and RMB1,181 on behalf of Hailiang Preschool, Hailiang Kindergarten, Hailiang Investment, Hailiang Hospital, respectively. Such amounts are receivable on demand, and the related parties aforementioned repaid RMB4,422, RMB3,135, RMB1,014 and RMB163 during the year ended June 30, 2018, respectively. The unpaid expenses due to related parties and the uncollected amount due from related parties was included in “Amount due to related parties” and “Amount due from related parties” as of June 30, 2016, 2017 and 2018, respectively. | ||
[3] | Each of the schools leases the school buildings and the related facilities from Hailiang Investment, a related party controlled by Mr. Feng. Haibo Education leases the office space from Nanchang Hongtou Property Management Co., Ltd, a related party owned by the Group’s non-controlling shareholder. The leasing term and rental amount of each of the three campuses and office space is as follows:Related parties transactions (Details 1) During the years ended June 30, 2016, 2017 and 2018, the Group paid rental fees of RMB25,783, RMB27,300 and RMB15,956, respectively. Hailiang Investment waived the 2013 and 2014 rental fees with an amount of RMB10,000 in the year ended June 30, 2017. Amount due to Hailiang Investment was RMB739 as of June 30, 2018, which was included in the “Amount due to related parties”. The prepaid rental fee to Hailiang Investment as of June 30, 2017 was RMB14,270 which was included in the “Amount due from related parties”. | ||
[4] | On October 31, 2016, the Company provided a one-year-period loan to Hong Kong Leonit Limited (“Leonit”) amounting to USD14,500, approximately RMB98,229 (“USD Loan”). On the same date, Hailiang Consulting made a one-year-period loan from Hailiang Group Co., Ltd amounting to RMB99,603 with interest free (“RMB Loan”). On October 9, 2017, the Company agreed to extend the loan with Leonit, pursuant to which the USD Loan’s due date was extended to due October 30, 2018. Similarly, Hailiang Group and Hailiang Consulting agreed to a loan extension pursuant to which the RMB Loan was due on October 30, 2018. Through an understanding among the aforementioned parties, the USD Loans are “secured” by the RMB Loan. It is the understanding among the parties that when the USD Loan is repaid, the RMB Loan will similarly be repaid. On December 5, 2017, the Company made a one-year-period loan from Leonit amounting to USD1,150, approximately RMB7,609, for the need of US Dollars. The loan of RMB98,229 made to Leonit and loan of RMB7,609 made from Leonit were recognized in “Amount due from related parties”, and the loan of RMB99,603 made from Hailiang Group was recognized in “Amount due to related parties” as of June 30, 2018. | ||
[5] | The Group entered into a series of leasehold improvement contracts with Heng Zhong Da for the leasehold improvement of classroom buildings, dining halls, student dormitories and amount of the contracts was RMB19,680, RMB34,626 and RMB23,174 for the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2018, Heng Zhong Da has provided service and improvement of RMB352,287 (RMB285,958, RMB37,231 and RMB29,098 in fiscal year 2016, 2017 and 2018), which was recorded in “Property and Equipment”. The Group has paid RMB22,661, RMB29,406 and RMB24,280 to Heng Zhong Da during the years ended June 30, 2016, 2017 and 2018, respectively. The accumulate payment included the payment of RMB11,567 on behalf of Hailiang Hospital (see Note 19 (a)(iv)) in the 2016 fiscal year. The unpaid balance of RMB19,508 as of June 30, 2018 was recognized in “Amount due to related parties”. | ||
[6] | The Group purchased healthy food products from Ming Kang Hui Health Food Group Co., Ltd. and Ming Kang Hui Ecological Agriculture Group Co., Ltd. (collectively referred as “Ming Kang Hui”), two companies owned by Hailiang Group, amounting to RMB48,517, RMB48,298 and RMB38,323 during the years ended June 30, 2016, 2017 and 2018, respectively. The amount due to Ming Kang Hui was RMB30,005, RMB6,876 and RMB5,386 as of June 30, 2016, 2017 and 2018, respectively. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CNY (¥) ¥ in Thousands | Total | Share capital | Share premium | Contributed capital | Translation reserve | Statutory reserve | Retained earnings | Total Hailiang Education Group Inc. shareholders' equity | Non-controlling interests | |
Balance at beginning at Jun. 30, 2015 | ¥ 697,815 | ¥ 239 | ¥ 18,628 | ¥ 225,895 | ¥ 47 | ¥ 195,011 | ¥ 257,995 | ¥ 697,815 | ¥ 0 | |
Total comprehensive income | ||||||||||
Profit | 99,432 | 0 | 0 | 0 | 0 | 0 | 99,432 | 99,432 | 0 | |
Other comprehensive loss | 8,437 | 0 | 0 | 0 | 8,437 | 0 | 0 | 8,437 | 0 | |
Total comprehensive (loss)/income | 107,869 | 0 | 0 | 0 | 8,437 | 0 | 99,432 | 107,869 | 0 | |
Transfer to statutory reserve | 0 | 0 | 0 | 0 | 0 | 28,398 | (28,398) | 0 | 0 | |
Initial public offering ("IPO") | 122,369 | 28 | 122,341 | 0 | 0 | 0 | 0 | 122,369 | 0 | |
Shares issuance cost | (9,551) | 0 | (9,551) | 0 | 0 | 0 | 0 | (9,551) | 0 | |
Share based payment (Note 14) | 3,166 | 0 | 3,166 | 0 | 0 | 0 | 0 | 3,166 | 0 | |
Balance at ending at Jun. 30, 2016 | 921,668 | 267 | 134,584 | 225,895 | 8,484 | 223,409 | 329,029 | 921,668 | 0 | |
Total comprehensive income | ||||||||||
Profit | 167,743 | 0 | 0 | 0 | 0 | 0 | 167,743 | 167,743 | 0 | |
Other comprehensive loss | 2,202 | 0 | 0 | 0 | 2,202 | 0 | 0 | 2,202 | 0 | |
Total comprehensive (loss)/income | 169,945 | 0 | 0 | 0 | 2,202 | 0 | 167,743 | 169,945 | 0 | |
Transfer to statutory reserve | 0 | 0 | 0 | 0 | 0 | 43,949 | (43,949) | 0 | 0 | |
Contributed capital | 10,000 | 0 | 0 | 10,000 | 0 | 0 | 0 | 10,000 | 0 | |
Balance at ending at Jun. 30, 2017 | 1,101,613 | 267 | 134,584 | 235,895 | 10,686 | 267,358 | 452,823 | 1,101,613 | 0 | |
Total comprehensive income | ||||||||||
Profit | 230,902 | 0 | 0 | 0 | 0 | 0 | 222,588 | 222,588 | 8,314 | |
Other comprehensive loss | (2,542) | 0 | 0 | 0 | (2,542) | 0 | 0 | (2,542) | 0 | |
Total comprehensive (loss)/income | 228,360 | 0 | 0 | 0 | (2,542) | 0 | 222,588 | 220,046 | 8,314 | |
Transfer to statutory reserve | 0 | 0 | 0 | 0 | 0 | 37,165 | (37,165) | 0 | 0 | |
Establishment of subsidiaries under common controlled by ultimate shareholder | [1] | 11,000 | 0 | 0 | 11,000 | 0 | 0 | 0 | 11,000 | 0 |
Transfer of equity interests in subsidiaries under common controlled by ultimate shareholder to the Company and non-controlling interests | [1] | (6,160) | 0 | 0 | (11,000) | 0 | 0 | 0 | (11,000) | 4,840 |
Exercise of warrant (Note 14) | 0 | 1 | (1) | 0 | 0 | 0 | 0 | 0 | 0 | |
Balance at ending at Jun. 30, 2018 | ¥ 1,334,813 | ¥ 268 | ¥ 134,583 | ¥ 235,895 | ¥ 8,144 | ¥ 304,523 | ¥ 638,246 | ¥ 1,321,659 | ¥ 13,154 | |
[1] | In August, 2017, Haibo Education and Haibo Logistics were incorporated by Xinyu Baishu, an entity ultimately controlled by Mr. Feng. The contributed capital from Xinyu Baishu was RMB6,000 and RMB5,000, respectively. In January 2018, Xinyu Baishu transferred 56% equity interests in Haibo Education and Haibo Logistics to Ningbo Haoliang with considerations of RMB3,360 and RMB2,800, respectively. The considerations were equivalent to the cost of 56% of the contributed capital since Haibo Education and Haibo Logistics had no substantive operation as of the acquisition date. Haibo Education and Haibo Logistics were under common control with the Company both immediately before and after the acquisition, and the Company recognized the assets and liabilities of Haibo Education and Haibo Logistics at historical cost. In January 2018, Xinyu Baishu also transferred the remaining 44% equity interest in Haibo Education and Haibo Logistics to Nanchang Baishu, a related party of the Company. The 44% equity interests owned by Nanchang Baishu were reocorded as non-controlling interests (see note 16). |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Cash flows from operating activities | ||||
Profit for the year | ¥ 230,902 | ¥ 167,743 | ¥ 99,432 | |
Adjustments for: | ||||
Depreciation | 113,128 | 110,485 | 65,038 | |
Disposal loss of leasehold improvement | 0 | 0 | 10,286 | |
Gain on disposal of affiliated entities | (5,349) | 0 | 0 | |
(Gain)/loss on sale of other property and equipment | 371 | (41) | (157) | |
Amortization of intangible assets | 446 | 662 | 948 | |
Share based payment | 0 | 0 | 1,459 | |
Net foreign exchange (gain)/loss | 324 | (282) | (1,049) | |
Interest income | (11,715) | (6,709) | (4,906) | |
Income tax expenses | 66,288 | 0 | 0 | |
Cash flows from (used in) operations | 394,395 | 271,858 | 171,051 | |
Change in other current assets | (13,681) | (530) | 2,126 | |
Change in prepayment to third party suppliers | 2,157 | 2,235 | (4,424) | |
Change in trade and other payables due to third parties | 30,416 | 23,313 | 21,789 | |
Change in amount due to related parties | 18,000 | (27,636) | 26,136 | |
Change in deferred revenue | 165,583 | 17,713 | (489) | |
Cash generated from operating activities | 596,870 | 286,953 | 216,189 | |
Income tax paid | (8,939) | 0 | 0 | |
Net cash from operating activities | 587,931 | 286,953 | 216,189 | |
Cash flows from investing activities | ||||
Interest received | 10,677 | 5,873 | 3,265 | |
Proceeds from sale of property and equipment | 1,015 | 64 | 762 | |
Purchase of property and equipment | (89,369) | (108,959) | (346,595) | |
Term deposits placed with a related party finance entity | (204,000) | (1,953,600) | (1,212,430) | |
Maturity of term deposits placed with a related party finance entity | 401,000 | 1,552,600 | 1,272,430 | |
Loans made to a related party | [1] | 0 | (98,229) | 0 |
Acquisition of subsidiaries | [2] | (6,160) | 0 | 0 |
Net proceeds from disposal of affiliated entities | 17,982 | 0 | 0 | |
Net cash (used in)/from investing activities | 131,145 | (602,251) | (282,568) | |
Cash flows from financing activities | ||||
Proceeds from issue of ordinary shares | 0 | 0 | 122,369 | |
Payment of new shares issuance cost | 0 | 0 | (7,844) | |
Loan made from related parties | [1] | 7,609 | 99,603 | 0 |
Capital contribution from former shareholder | 11,000 | 0 | 0 | |
Net cash from financing activities | 18,609 | 99,603 | 114,525 | |
Net increase/(decrease) in cash and cash equivalents | 737,685 | (215,695) | 48,146 | |
Cash and cash equivalents at beginning of the year | 77,801 | 291,011 | 233,379 | |
Effect of movements in exchange rates on cash held | (2,866) | 2,485 | 9,486 | |
Cash and cash equivalents at the end of the year | 812,620 | 77,801 | 291,011 | |
Non cash transaction: | ||||
Share based payment | 0 | 0 | 3,166 | |
Capital transaction | ¥ 0 | ¥ 10,000 | ¥ 0 | |
[1] | On October 31, 2016, the Company provided a one-year-period loan to Hong Kong Leonit Limited (“Leonit”) amounting to USD14,500, approximately RMB98,229 (“USD Loan”). On the same date, Hailiang Consulting made a one-year-period loan from Hailiang Group Co., Ltd amounting to RMB99,603 with interest free (“RMB Loan”). On October 9, 2017, the Company agreed to extend the loan with Leonit, pursuant to which the USD Loan’s due date was extended to due October 30, 2018. Similarly, Hailiang Group and Hailiang Consulting agreed to a loan extension pursuant to which the RMB Loan was due on October 30, 2018. Through an understanding among the aforementioned parties, the USD Loans are “secured” by the RMB Loan. It is the understanding among the parties that when the USD Loan is repaid, the RMB Loan will similarly be repaid. On December 5, 2017, the Company made a one-year-period loan from Leonit amounting to USD1,150, approximately RMB7,609, for the need of US Dollars. The loan of RMB98,229 made to Leonit and loan of RMB7,609 made from Leonit were recognized in “Amount due from related parties”, and the loan of RMB99,603 made from Hailiang Group was recognized in “Amount due to related parties” as of June 30, 2018. | |||
[2] | In August 2017, Haibo Education and Haibo Logistics were incorporated by Xinyu Baishu, an entity ultimately controlled by Mr. Feng. The contributed capital from Xinyu Baishu was RMB6,000 and RMB5,000, respectively. In January 2018, Xinyu Baishu transferred 56% equity interests in Haibo Education and Haibo Logistics to Ningbo Haoliang with considerations of RMB3,360 and RMB2,800, respectively. The considerations were equivalent to the cost of 56% of the contributed capital since Haibo Education and Haibo Logistics had no substantive operation as of the acquisition date. Haibo Education and Haibo Logistics were under common control with the Company both immediately before and after the acquisition, and the Company recognized the assets and liabilities of Haibo Education and Haibo Logistics at historical cost. In January 2018, Xinyu Baishu also transferred the remaining 44% equity interest in Haibo Education and Haibo Logistics to Nanchang Baishu, a related party of the Company. The 44% equity interests owned by Nanchang Baishu were reocorded as non-controlling interests (see note 16). |
Reporting entity and organizati
Reporting entity and organization | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of reporting entity and organization [Abstract] | |
Reporting entity and organization disclosure [text block] | 1 Reporting entity and organization Hailiang Education Group Inc. (the “Company”) is a holding company and is majority-owned by Mr. Hailiang Feng (“Mr. Feng”). The Company, its wholly-owned subsidiaries and consolidated affiliated entities are collectively referred to as the “Group”. The Group is principally engaged in the provision of education and management services in People’s Republic of China (“PRC”). The Group mainly offers private K-12 educational services in schools located in Zhuij, Zhejiang Province, China, management services, educational training services and overseas study consulting services. The Group originally operated three schools, namely Hailiang Foreign Language School (“Foreign Language”), Zhuji Tianma Experimental School (“Tianma Experimental”) and Hailiang Experimental High School (“Experimental High”, previously named “Zhuji Private High School”). In November 2016 and February 2017, certain schools were separated from Foreign Language and Experimental High as legal entities, with all their equity interest held by Hailiang Education Management Group Co., Ltd. (“Hailiang Management”). Hailiang International Kindergarten (“Hailiang Kindergarten”), Hailiang Primary School, Hailiang Junior Middle School, and Hailiang Senior Middle School were divided from Foreign Language, and Hailiang High School of Art was divided from Experimental High. The separation of affiliates did not have financial impact on the consolidated financial statements of the Group. In June 2017, Hailiang Consulting set up Ningbo Hailiang Education Logistics Management Co., Ltd. (“Ningbo Hailiang”) and Ningbo Haoliang Information Consulting Co., Ltd. (“Ningbo Haoliang”) in Ningbo City, Zhejiang province in the PRC. In July 2017, Hailiang Management and Hailiang Group, a related party of the Group, entered into an Educational Cooperative Partnership Agreement with the Nanqiao government in Chuzhou city, Anhui Province, and started the operation in Chuzhou Hailiang Foreign Language School (“Chuzhou School”). In February 2018, the Group disposed the ownership and equity interest in Hailiang Kindergarten and the kindergarten business unit of Tianma Experimental (“Tianma Kindergarten”) since the kindergartens had been at a loss and the Group decided to focus on providing educational services for primary, middle and high school students. In June 2018, the Group disposed the ownership in Chuzhou School, which was mainly based on the Group’s business assessment in response to current market conditions. Several subsidiaries and affiliated entities were set up for the practice of asset-light strategy during the 2018 fiscal year. In January 2018, Ningbo Haoliang acquired 56% equity interests in Jiangxi Haibo Education Management Co., Ltd. (“Haibo Education”) and Jiangxi Haibo Logistics Management Co., Ltd (“Haibo Logistics”), respectively, from Xinyu Baishu Technology Service Co., Ltd. (“Xinyu Baishu”), an entity ultimately controlled by Mr. Feng. Haibo Education and Haibo Logistics were incorporated in August 2017, and had no substantive business as of the date of acquisitions. The acquisitions were conducted under common control (see note 19(a)(x)). Ningbo Haoliang, Haibo Education and Haibo Logistics are mainly engaged in the provision of management consulting services, educational training services and logistic services, respectively. As of June 30, 2018, the Group managed and operated 16 schools, including Xinchang Nanrui Experimental School, Xiantao No.1 Middle School and fourteen schools sponsored or operated by Nanchang Baishu Technology Co., Ltd., an entity controlled by Hailiang Investment Group Co. Ltd (“Hailiang Investment”). In August 2017, Hailiang Management incorporated Zhejiang Hailiang Mingxin Education Technology Co., Ltd. (“Hailiang Mingxin”) as its wholly owned entity. Hailiang Mingxin’s business scope includes after-school enrichment program and overseas study consulting services. In September 2017, Hailiang Consulting incorporated Zhuji Nianxin Lake Hotel Management Co., Ltd. (“Zhuji Hotel”) as its wholly owned entity. Zhuji Hotel is mainly engaged in the provision of hotel management service. In November 2017, Zhuji Youer Network Technology Co., Ltd. (“Zhuji Youer”), Zhuji Mingrui Business Information Consulting Co., Ltd. (“Zhuji Mingrui”), Zhuji Shangzhuo Enterprise Management Consulting Co., Ltd. (“Zhuji Shangzhuo”) and Zhuji Hongda Trade Co., Ltd. (“Zhuji Hongda”) were established as Hailiang Management’s wholly controlled subsidiaries. In May, 2018, Zhejiang Hailiang Consulting and Services Co., Ltd. (“Hailiang Consulting”) incorporated Ningbo Hailiang Sports Development Co., Ltd. (“Hailiang Sports”) as its wholly owned subsidiary. In June 2018, Hangzhou Hailiang Education Management Co., Ltd (“Hangzhou Hailiang”) was established by Hailiang Management as its wholly owned entity. As of June 30, 2018, there was no substantive operations in Zhuji Youer, Zhuji Mingrui, Zhuji Shangzhuo, Zhuji Hongda, Hailiang sports and Hangzhou Hailiang. As of June 30, 2018, the Company’s subsidiaries and consolidated affiliated entities are as follows: Subsidiary Place and year of establishment Legal Principle activities Hailiang Education (HK) Limited (“Hailiang HK”) Hong Kong, China, 2011 100 % Investment holding Hailiang Consulting Zhejiang, China, 2011 100 % Investment holding and school management Ningbo Hailiang Zhejiang, China, 2017 100 % School logistics management Ningbo Haoliang Zhejiang, China, 2017 100 % School management Zhuji Hotel Zhejiang, China, 2017 100 % Hotel management Hailiang Sports Zhejiang, China, 2018 100 % Sports activities consulting Haibo Education Jiangxi, China, 2018 56 % Educational training Haibo Logistics Jiangxi, China, 2018 56 % School management Consolidated affiliated entities Place and year of establishment Legal Principle activities Hailiang Management (previously named “Zhejiang Hailiang Education Investment Group Co., Ltd.”) Zhejiang, China, 2012 N/A* Investment holding Hailiang Mingxin Zhejiang, China, 2017 N/A* Educational consulting, after-school enrichment program Hangzhou Hailiang Zhejiang, China, 2018 N/A* School management Zhuji Youer Zhejiang, China, 2017 N/A* Technology Zhuji Mingrui Zhejiang, China, 2017 N/A* Consulting Zhuji Shangzhuo Zhejiang, China, 2017 N/A* Consulting Zhuji Hongda Zhejiang, China, 2017 N/A* Trading Foreign Language Zhejiang, China, 1995 N/A* K-12 educational services Experimental High Zhejiang, China, 2002 N/A* K-12 educational services Tianma Experimental Zhejiang, China, 1995 N/A* K-12 educational services Hailiang Primary School Zhejiang, China, 2016 N/A* K-12 educational services Hailiang Junior Middle School Zhejiang, China, 2016 N/A* K-12 educational services Hailiang Senior Middle School Zhejiang, China, 2016 N/A* K-12 educational services Hailiang High School of Art (previously named “Hailiang Art Middle School”) Zhejiang, China, 2017 N/A* K-12 educational services * These entities are controlled by the Company pursuant to the contractual arrangements disclosed below. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Basis of preparation [Abstract] | |
Disclosure of basis of preparation of financial statements [text block] | 2 Basis of preparation (a) Statement of compliance The consolidated financial statements of the Group as of June 30, 2017 and 2018 and for each of the years in the three-year period ended June 30, 2018 The consolidated financial statements were authorized for issue by the Company’s board of directors on October 18, 2018. (b) Basis of presentation Since laws prohibit foreign ownership of companies and institutions in compulsory educational services at primary and middle school levels, and restrict foreign investment in educational services businesses at the high school level, the ’s offshore holding companies are not allowed to directly own and operate schools in China. Thus, Hailiang Consulting, the Company’s wholly owned PRC subsidiary, entered into a series of contractual arrangements (“Contractual Agreements”) with Hailiang Management and its affiliated subsidiaries and schools and respective shareholder Mr. Feng on December 31, 2013. The contractual arrangements include Power of Attorney, Call Option Agreement, Equity Pledge Agreement, and Consulting Services Agreement. The key terms of the Contractual Agreements are as follows: Call Option Agreement: Power of Attorney: Consulting Services Agreement: Equity Pledge Agreement: The Contractual Agreements provide the Company, through Hailiang HK and Hailiang Consulting, the following, (i) the power over the Affiliate Entities; (ii) the exposure or rights to variable returns from its involvement with the Affiliated Entities; and (iii) the ability to affect those returns through its power over the Affiliated Entities. The Company has the power over the Affiliated Entities by virtue of the Power of Attorney, pursuant to which Hailiang Consulting has rights that give it the current ability to direct the activities that significantly affect the returns of the Affiliated Entities. Hailiang Consulting has the rights to appoint, replace or remove directors of Hailiang Management, as well as to make decisions on all operational and financial matters of the Affiliated Entities. The Company has the exposure or rights to variable returns from its involvement with the Affiliated Entities by virtue of the Power of Attorney and Consulting Services Agreement. Hailiang Consulting’s returns from its involvement with the Affiliated Entities have the potential to vary as a result of the performance of the Affiliated Entities. Pursuant to the Power of Attorney, Hailiang Consulting is the only party that can share in the distributed and undistributed earnings of the Affiliated Entities. Pursuant to the Consulting Services Agreement, Hailiang Consulting has the exclusive right to provide consulting, support and services to the Affiliated Entities in return for a fee that could be up to 100% of the profits of the Affiliated Entities. The Company has all decision-making rights over the Affiliated Entities to affect the amounts of its returns. By virtue of the Power of Attorney, Hailiang Consulting is the principal and is the only party that has the decision-making authority on all relevant activities of the Affiliated Entities. There are no substantive rights held by other parties that may affect or restrict Hailiang Consulting’s ability to direct the relevant activities of the Affiliated Entities. The Power of Attorney is irrevocable and no party can remove Hailiang Consulting without cause. Hailiang Consulting also has exposure to variability of returns of the Affiliated Entities from the Call Option Agreement. The Company, Hailiang HK and Hailiang Consulting are either investment holding companies or companies that have not carried out any business since their respective dates of incorporation, apart from acquiring control of the Affiliated Entities through the Contractual Agreements. The Company and the Affiliated Entities are controlled by the same person both before and after the Reorganization on December 31, 2013. In substance, the Reorganization involves no business combination and is merely a reorganization of entities under common control. Accordingly, the assets and liabilities of the Affiliated Entities are measured and recognized at their historical carrying amounts. In addition, the accompanying consolidated financial statements present the results of the Group as if the Reorganization had been consummated as of the beginning of the earliest period presented. That is, the Company’s consolidated financial statements include the financial position and the results of operations of the Affiliated Entities as of the earliest periods presented. On June 30, 2017, Hailiang Consulting entered into a series of amended and restated contractual arrangements with Hailiang Management and Mr. Hailiang Feng, the controlling shareholder of the Company (collectively, the “Amended and Restated Contractual Agreements”). The purposes of the Amended and Restated Contractual Agreements were to revise the original contractual arrangements among the said parties entered into in December 2013 in order to (i) reflect and accommodate additions of new affiliated entities of Hailiang Management since December 2013 as well as any future changes thereto, and (ii) to allow for potential arrangements, if any and when applicable, to be entered into by controlled affiliate(s) of Hailiang Consulting. Notwithstanding the aforementioned revisions, the Amended and Restated Contractual Agreements continue to enable the Company to: • exercise the power over its affiliated entities; • have the exposure or rights to variable returns from its involvement with its affiliated entities; and • exercise the ability to affect those returns through use of its power over its affiliated entities The following is a summary of the material provisions of the Amended and Restated Contractual Agreements. Amended and Restated Call Option Agreement. Amended and Restated Power of Attorney. Amended and Restated Consulting Services Agreement. Amended and Restated Equity Pledge Agreement. On February 8, 2018, Zhejiang Beize Group Co., Ltd. (“Beize Group”), a PRC company 100% owned by Mr. Feng and his wife, subscribed 0.1% registered capital of Hailiang Management. Accordingly, On February 23, 2018, Hailiang Consulting, Hailiang Management, Mr. Feng and Beize Group entered into a series of contractual arrangement (the “Second Amended and Restated Contractual Agreements”), including the Second Amended and Restated Call Option Agreement, Second Amended and Restated Powers of Attorney, Second Amended and Restated Consulting Services Agreement and Second Amended and Restated Equity Pledge Agreement. The Second Amended and Restated Contractual Agreements were signed to reflect the abovementioned increase of shareholders while the terms of these agreements remained unchanged. The recording process for the Second Amended and Restated Contractual Agreements with the local government was completed on March 15, 2018. The following financial statement balances and amounts of the affiliated entities were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions. 2017 RMB 2018 RMB Total current assets 376,729 848,028 Total non-current assets 805,910 710,464 Total assets 1,182,639 1,558,492 Total current liabilities 197,473 396,238 Total liabilities 197,473 396,238 2016 RMB 2017 RMB 2018 RMB Net revenue 653,753 853,247 1,110,470 Profit before tax 112,571 165,300 221,057 The affiliated entities contributed an aggregate of 100%, 100% and 95.0% of the Group’s consolidated revenue for the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2017 and 2018, the affiliated entities accounted for an aggregate of 84.5% and 82.7%, respectively, of the consolidated total assets, and 66.4% and 72.0%, respectively, of the consolidated total liabilities. (c) Risks and uncertainties Risks and uncertainties of the Contractual Arrangements: T In the opinion of management, based on the legal opinion obtained from the Company’s PRC legal counsel, the above contractual arrangements are legally binding and enforceable and do not violate current PRC laws and regulations. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and the contractual arrangements are found to be in violation of any existing or future PRC laws and regulations, the PRC government could: • require the Company to restructure its ownership structure and operations in the PRC to comply with the existing or future PRC laws and regulations; • revoke the Affiliated Entities’ business and operating licenses; • require the Affiliated Entities to discontinue or restrict operations; • block the Affiliated Entities’ websites; • impose additional conditions or requirements with which the Affiliated Entities may not be able to comply; or • take other regulatory or enforcement actions against the Affiliated Entities that could be harmful to the Affiliated Entities’ business. If the imposition of any of these government actions causes the Company to lose its right to direct the activities of the Affiliated Entities or to lose its right to the variable returns from its involvement with the Affiliated Entities and the Company is not able to restructure its ownership structure of the Affiliated Entities (such as acquiring controlling equity interests), the Company would not be able to consolidate the financial results of the Affiliated Entities in the Company’s consolidated financial statements. Substantially all assets, liabilities and results of operations reported in the accompanying consolidated financial statements comprise the assets, liabilities and results of operations of the Affiliated Entities. The Company and its wholly owned subsidiaries, Hailiang HK and Hailiang Consulting are investment holding companies with no substantial operations and hold minimal amount of assets. In the opinion of management, the likelihood of loss in respect of the Company’s current ownership structure or contractual arrangements is remote based on current facts and circumstances. The equity interests of Hailiang Management are legally held by Mr. Feng and Beize Group on behalf of the Company. Mr. Feng is also a major shareholder of the Company. The Company cannot assure that Mr. Feng and Beize Group will act in the best interests of the Company. The Company relies on Mr. Feng and Beize Group to comply with the terms and conditions of the Contractual Agreements. If Mr. Feng and Beize Group is in breach of his contractual obligations under the Contractual Agreements and the Company cannot resolve any dispute between the Company, Mr. Feng and Beize Group, the Company would have to rely on legal proceedings, which could result in disruption of the Company’s business and subject the Company to substantial uncertainty as to the outcome of any such legal proceedings. (d) Functional and presentation currency The functional currency of each of the Group’s entities is the currency of the primary economic environment in which the entity operates (the “functional currency”). The Company’s functional currency is the United States dollar (“USD”), whereas the functional currency of Hailiang HK and the PRC entities of the Group are the HKD and RMB, respectively. The Group’s presentation currency is RMB. All financial information presented has been rounded to the nearest thousands, except when otherwise indicated. (e) Use of estimates The preparation of the consolidated financial statements in conformity with IFRSs requires management to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. Significant items subject to such estimates and assumptions include the consolidation of the Affiliated Entities, the useful lives and the recoverability of the carrying amounts of property and equipment and intangible assets (including goodwill), the collectability of other receivables and term deposits placed with a related party finance entity, income tax and the assessment of contingent liabilities. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: • Note 2(c), risks and uncertainties (the enforceability of the Contractual Agreements) • Note 7, income tax expenses • Note 9, property and equipment • Note 10, intangible assets and goodwill • Note 12, other current assets • Note 18(a), credit risk Measurement of fair values A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. Management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRSs, including the level in the fair value hierarchy in which such valuations should be classified. When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2: inputs are inputs, other than quoted prices included within Level 1, those are observable for the asset or liability, either directly or indirectly; and Level 3: inputs are unobservable inputs for asset or liability. If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Further information about assumptions made in measuring fair values is included in the following notes: • Note 10, intangible assets and goodwill • Note 18(d), fair value |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of summary of significant accounting policies [Abstract] | |
Disclosure of significant accounting policies [text block] | 3 Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in the consolidated financial statements, and have been applied by each of the entities comprising the Group. (a) Basis of consolidation (i) Business combinations The Group accounts for business combinations (except entities acquired under common control) using the acquisition method when control is transferred to the Group (see 3(a)(ii)). The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment (see 3(f)(ii)). Any gain on a bargain purchase is recognized in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise, other contingent consideration is re-measured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s employees (acquiree’s awards), then all or a portion of the amount of the acquirer’s replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market-based measure of the replacement awards compared with the market-based measure of the acquiree’s awards and the extent to which the replacement awards relate to pre-combination service. (ii) Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. (iii) Entities acquired under common control Entities acquired under common control or transactions accounted for in a manner similar to a pooling-of-interests (for example, a reorganization of entities under common control) are accounted under the “book value” accounting, where the Company recognizes the assets acquired and liabilities assumed using the book values of the transferor. When the consolidated financial statements are issued for a period that includes the date the common control transaction occurred, the Company’s consolidated financial statements of all prior periods are retrospectively revised to the earliest date presented. (iv) Non-controlling interests Non-controlling interests are measured initially at the proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. (b) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated to the functional currency at the exchange rate when the fair value was determined. Foreign currency differences are generally recognized in profit or loss. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into RMB at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into RMB at the exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income and accumulated in the translation reserve. (c) Financial instruments The Group classifies non-derivative financial assets into the following categories: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets. The Group classifies non-derivative financial liabilities into the following categories: financial liabilities at fair value through profit or loss and other financial liabilities. (i) Non-derivative financial assets and financial liabilities – Recognition and de-recognition The Group initially recognizes loans and receivables and debt securities issued on the date when they are originated. All other financial assets and financial liabilities are initially recognized on the trade date when the entity becomes a party to the contractual provisions of the instrument. The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognized financial assets that is created or retained by the Group is recognized as a separate asset or liability. The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to offset the amounts and intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. (ii) Non-derivative financial assets – Measurement A financial asset is classified as at fair value through profit or loss if it is classified as held-for-trading or is designated as such on initial recognition. Directly attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value and changes therein, including any interest or dividend income, are recognized in profit or loss. Held-to-maturity financial assets are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method. Loans and receivables are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method. Available-for-sale financial assets are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on debt instruments, are recognized in other comprehensive income and accumulated in the fair value reserve. When these assets are derecognized, the gain or loss accumulated in equity is reclassified to profit or loss. (iii) Non-derivative financial liabilities – Measurement A financial liability is classified as at fair value through profit or loss if it is classified as held-for-trading or is designated as such on initial recognition. Directly attributable transaction costs are recognized in profit or loss as incurred. Financial liabilities at fair value through profit or loss are measured at fair value and changes therein, including any interest expense, are recognized in profit or loss. Other non-derivative financial liabilities are initially measured at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest method. (d) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses (Note 3(f)). Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and any other costs directly attributable to bringing the asset to a working condition for its intended use. Construction in progress represents property under construction and equipment pending installation, and is stated at cost less impairment losses (Note 3(f)). Capitalization of these costs ceases and the construction in progress is transferred to property and equipment when the asset is substantially ready for its intended use. No depreciation is provided in respect of construction in progress. Gains or losses arising from the retirement or disposal of an item of property and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of retirement or disposal. (ii) Subsequent costs The cost of replacing a component of an item of property and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced component is derecognized. The costs of the day-to-day servicing of property, and equipment are recognized in profit or loss as incurred. (iii) Depreciation Items of property and equipment are depreciated from the date that they are available for use or, in respect of self-constructed assets, from the date that the asset is completed and ready for use. Depreciation is calculated to write off the cost of items of property and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or their useful lives. Motor vehicles 5~10 years Furniture, fixtures and other equipment 5~10 years Leasehold improvements Shorter of the remaining lease terms Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (e) Intangible assets (i) Goodwill Goodwill is presented with intangible assets and is measured at cost less accumulated impairment losses (Note 3(f)). (ii) Trademark Trademark is not amortized when its useful life is assessed to be indefinite, which is reviewed annually to determine whether events and circumstances continue to support the indefinite useful life assessment. The change in the useful life assessment from indefinite to finite is accounted for prospectively from the date of change and in accordance with the policy for amortization of intangible assets with finite lives. (iii) Other intangible assets Other intangible assets that have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses (Note 3(f)). Other intangible assets are student relationships that arose from the acquisition of Tianma Experimental. (iv) Amortization Amortization of intangible assets with finite useful lives is recognized in profit or loss on a straight-line method to reflect the expected departure rate over the remaining useful life of the asset, other than goodwill, from the date that they are available for use. The estimated useful lives of student relationships are 1~15 years. Amortization methods and useful lives are reviewed at each reporting date and adjusted if appropriate. (f) Impairment (i) Non-derivative financial assets A financial asset not classified as at fair value through profit or loss, including an interest in an equity-accounted investee, is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that loss event had an impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired includes: • default or delinquency by a debtor; • restructuring of an amount due to the Group on terms that the Group would not consider otherwise; • indications that a debtor or issuer will enter bankruptcy; • adverse changes in the payment status of borrowers or issuers; • the disappearance of an active market for a security because of financial difficulties; or • observable data indicating that there is a measurable decrease in the expected cash flows from a group of financial assets. The Group considers evidence of impairment for financial assets measured at amortized cost (other receivables) at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. In assessing collective impairment the Group uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account against receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. (ii) Non-financial assets The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and indefinite-lived intangible assets are tested annually for impairment. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (“CGU”s). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or CGU is the greater of its value in use and fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. An impairment loss in respect of goodwill is not reversed. In respect of other non-financial assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. (g) Cash and cash equivalents Cash and cash equivalents in the consolidated statements of financial position comprise cash at banks and on hand and cash equivalents with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. (h) Term Deposit Term deposits comprise highly liquid investments with original maturities of greater than three months, but less than twelve months. (i) Employee benefits (i) Defined contribution plan Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the period during which services are rendered by employees. Pursuant to the relevant labor rules and regulations in the PRC, the Group participates in defined contribution retirement schemes (the “Schemes”) organized by the relevant local government authorities for its eligible employees whereby the Group is required to make contributions to the Schemes at 34.4% to 41.4% of the deemed salary rate announced annually by the local government authorities. The Group has no other material obligation for payment of pension benefits associated with those schemes beyond the annual contributions described above. (ii) Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A provision is recognized for the amount expected to be paid under short-term cash bonus or other short-term benefits if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (j) Provisions and contingent liabilities A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. (k) Revenue The Group recognize revenue when persuasive evidence of an arrangement exists, delivery of the goods or services has occurred, the sales price reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The primary sources of the Group’s revenues are as follows: Educational programs and services The Group’s revenue is principally derived from the rendering of boarding school education services to students. The Group offers basic educational and international programs at the primary school, middle school and high school grades. The basic educational program provides curricula and coursework mandated by the PRC government. The international program provides students the opportunity to earn both their PRC school diplomas and to prepare for admissions to overseas educational institutions. Tuition fees are received at the beginning of each school year. Each school year is comprised of two semesters. The first semester starts in September and ends in January. The second semester starts the following month in February and ends in June. Tuition fees contain multiple components consisting of the delivery of education, after-school enrichment program, accommodations, meals, and transportation services (collectively, “education services”) and delivery of educational books and related materials (“education materials”). The Group allocates the total tuition fees into educational services and educational materials based on their relative fair value. The components within education services were not further separated since revenue recognition for the components occurs at the same time and the components belong to the same category of revenue, which is service revenue. Revenue attributable to education services is recognized on a straight-line basis over the school year since the services are performed by an indeterminate number of acts over a specified period of time and there is no evidence that some other method better represents the stage of completion. Revenue attributable to educational materials is recognized upon the delivery of the products to the students, which is when the risks and rewards have been transferred to the students. Tuition fees not yet earned are recorded as deferred revenue. For the periods presented, revenue recognized for the delivery of educational materials was insignificant and occurred during the same year that revenue for the delivery of education services was recognized. Management services The Group also provides education and management services to schools, including but not limited to logistic, management and consulting services. Revenue is recognized upon the delivery of service. Others Others mainly include revenue derived from educational training services, overseas study consulting services and hotel management. Educational training services. The Group provides various extracurricular courses to arouse students’ interest and broaden their outlook. Tuition is generally collected in advance and is initially recorded as deferred revenue. Revenue derived from providing educational training services is recognized on a straight-line basis over the period of the courses. Overseas study consulting services. Hotel management. (l) Government grants Government grants are recognized in the statements of profit or loss and other comprehensive income when the grants are unconditional and become receivable. Grants that compensate the Group for expenses incurred are recognized as income in profit or loss on a systematic basis in the same periods in which the expenses are incurred. (m) Lease payments Payments made under operating lease are recognized in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expenses over the term of the lease. (n) Finance income and finance costs Finance income comprises interest income. Interest income is recognized on accrual basis during the interest-bearing deposits period. Finance costs comprise interest expense on borrowings. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss. Foreign currency gains and losses are reported on a net basis as either finance income or finance expense depending on whether foreign currency changes are in a net gain or net loss position. (o) Income tax expense Income tax expense comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are recognized in profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arise from unused tax losses and unused tax credits. Deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill; the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that, in the case of taxable differences, the Group controls the timing of the reversal and it is probable they will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future. The amount of deferred tax recognized is measured based on the expected manner of realization or settlement of the carrying amount of the assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. Current tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset. Current tax assets are offset against current tax liabilities, and deferred tax assets are offset against deferred tax liabilities, if there is a legal enforceable right to offset current tax assets and current tax liabilities, and in the case of current tax assets and liabilities, the Group intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously, or in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same tax authority on the same taxable entity. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. The carrying amount of a deferred tax asset is reviewed at each reporting date and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Group to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such determination is made. (p) Earnings per share Basic earnings per share (“basic EPS”) is calculated by dividing the profit by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share (“diluted EPS”) is similar to basic earnings per share but presents the dilutive effect on a per share basis of potential ordinary shares (e.g. warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. (q) Related parties For the purposes of these consolidated financial statements, a person or entity is considered to be related to the Group if: (a) A person, or a close member of that person’s family, is related to the Group if that person: (i) has control or joint control over the Group. (ii) has significant influence over the Group; or of a parent of the Group. (iii) is a member of the key management personnel of the Group or of a parent of the Group. (b) An entity is related to the Group if any of the following conditions applies: (i) the entity and the Group are members of the same Group (which means that each parent, subsidiary and fellow subsidiary is related to the other). (ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of the Group of which the other entity is a member). (iii) both entities are joint ventures of the same third party. (iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group. (vi) the entity is controlled or jointly controlled by a person identified in (a). (vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity. (r) Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended June 30, 2018 Up to the date of issue of these consolidated financial statements, the IASB has issued a number of amendments, new standards and interpretations which are not yet effective for the year ended June 30, 2018 and which have not been adopted in these consolidated financial statements. These include the following which may be relevant to the Group. Effective for accounting periods beginning on or after IFRS 9, Financial Instruments January 1, 2018 IFRS 15, Revenue for Contracts with Customers January 1, 2018 IFRS 16, Leases January 1, 2019 Amendments to IFRS 9, Prepayment Features with Negative Compensation January 1, 2019 Amendments to IFRS 3, Business combinations January 1, 2019 Amendments to IFRS 11, Joint Arrangements January 1, 2019 Amendments to IAS 12, Income Taxes January 1, 2019 Amendments to IAS 19, Employee Benefits January 1, 2019 Amendments to IAS 28, Investments in Associates and Joint Ventures January 1, 2019 IFRS 9 “Financial Instruments” addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules of hedge accounting and a new impairment model for financial assets, and should be applied in an entity’s IFRS financial statements for annual reporting periods beginning on or after January 1, 2018. Earlier application is permitted. The Group will adopt IFRS 9 in the financial reporting period commencing July 1, 2018. The Group has completed the review of IFRS 9 and does not expect the new guidance to have a significant impact on the reclassification and measurement of its financial assets. In May 2014, IASB issue IFRS15-“Revenue from Contracts with Customers”. The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the principle, a company should follow five steps: 1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The standard should be applied in an entity’s IFRS financial statements for annual reporting periods beginning on or after 1 January 2018. Earlier application is permitted. The Group will adopt IFRS15 in the financial reporting period commencing July 1, 2018 and elect to apply the "modified retrospective" transition approach to implementation. The Group has completed review of the requirements of IFRS15 against the existing accounting policy and concluded that the adoption of IFRS 15 will not have significant impact on the timing of the Group’s revenue recognition nor on the Group’s equity. For those new standards with effective date beginning on/after January , , the Group is in the process of making an assessment of what the impact of these amendments, new standards and interpretations is expected to be in the period of initial application. (s) Reclassifica |
Other income, net
Other income, net | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of other operating income [Abstract] | |
Disclosure of other operating income [text block] | 4 Other income, net 2016 RMB 2017 RMB 2018 RMB Unconditional government grants 1,434 6,253 5,832 Others 322 72 (2,143 ) 1,756 6,325 3,689 Others mainly include worker’s compensation of RMB1,031, disposal loss of non-current assets of RMB425 during the year ended June 30, 2018. |
Employee benefit expenses
Employee benefit expenses | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of employee benefits [Abstract] | |
Disclosure of employee benefits [text block] | 5 Employee benefit expenses 2016 RMB 2017 RMB 2018 RMB Wages and salaries 230,516 280,786 388,238 Contributions to defined contribution plans 27,038 44,884 52,898 257,554 325,670 441,136 The Group participates in pension funds organized by the PRC government. According to the respective pension fund regulations for its employees, the Group is required to pay annual contributions for its employees. The Group remits all the pension fund contributions to the relevant local government authorities, which are responsible for the payments and liabilities relating to the pension funds. The Group has no obligation for payment of retirement and other post-retirement benefits of employees other than the contributions described above. |
Profit before tax
Profit before tax | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of profit loss before tax [Abstract] | |
Disclosure of profit loss before tax explanatory [text block] | 6 Profit before tax (i) Net finance income 2016 RMB 2017 RMB 2018 RMB Interest income 4,906 6,709 11,715 Net foreign exchange gain/(loss) 1,049 282 (324 ) Other expenses (203 ) (99 ) — Net finance income 5,752 6,892 11,391 Interest income was mainly generated from deposits placed with a related party finance entity (Note 19(a)(ii)). (ii) Expenses by nature 2016 RMB 2017 RMB 2018 RMB Employee benefit expenses (Note 5) 257,554 325,670 441,136 Students related cost 100,633 116,273 133,308 Transportation 24,729 31,823 36,110 Marketing and promotion 15,806 21,240 24,019 Depreciation 65,038 110,485 113,128 Utilities 19,652 23,286 26,100 Amortization of intangible assets 948 662 446 Operating lease charges 25,592 30,030 33,290 Share based payment 1,459 — — Cost related to overseas consulting business — — 14,263 Others 40,439 39,300 70,787 Total cost of revenue, selling expenses and administrative expenses 551,850 698,769 892,587 Students related costs are mainly comprised of costs for text books, uniforms, dining services and living accommodations. (iii) Depreciation and amortization 2016 RMB 2017 RMB 2018 RMB Included in cost of revenue Depreciation 64,642 109,755 112,039 Included in G&A expenses Depreciation 396 730 1,015 Included in selling expenses Amortization 948 662 446 Depreciation — — 74 (iv) Gain on disposal of affiliated entities On July 10, 2017, the Group entered into an Educational Cooperative Partnership Agreement (the “Chuzhou Agreement”) with Nanqiao government. Pursuant to the Chuzhou Agreement, Hailiang Management shall launch and operate Chuzhou School for 30 years beginning on September 1, 2017. In June, 2018, Hailiang Management entered into a Change of Operator Agreement and transferred the sponsorship and 100% equity interest in Chuzhou School to Chuzhou Zhengxu Education Information Consulting Co., Ltd., a wholly owned subsidiary of Hailiang Group. The consideration was RMB1,793, and the carrying amount of its net assets was RMB1,412 on disposal date. The Group recognized a gain of RMB381 on the disposal. In addition, on February 28, 2018, the Group entered into agreements with Hailiang Preschool Education Group Co., Ltd (“Hailiang Preschool”), transferred the Tianma Kindergarten and the sponsorship and 100% equity interest in Hailiang Kindergarten. The consideration of disposing Tianma Kindergarten and Hailiang Kindergarten was RMB1,666 and RMB20,049, respectively. On the disposal date, the carrying amount of the net liabilities of Tianma Kindergarten was RMB17, and the carrying amount of the net assets of Hailiang Kindergarten was RMB16,764. The Group recognized a gain of RMB1,683 and RMB3,285 on the disposal of Tianma Kindergarten and Hailiang Kindergarten, respectively. The deals were not strategic shifts of the business and these transactions will not have major impact on the Group’s business, therefore the transactions were not qualified as discontinued operation. |
Income tax expenses
Income tax expenses | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of income tax [Abstract] | |
Disclosure of income tax [text block] | 7 Income tax expenses The Company is incorporated in the Cayman Islands and conducts its primary business operations through its subsidiaries and consolidated affiliated entities in the PRC. It also has a wholly-owned subsidiary in Hong Kong. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. Hong Kong Under the Hong Kong tax laws, the statutory income tax rate is 16.5%. Subsidiaries in Hong Kong are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. China Under the Enterprise Income Tax (“EIT”) Law, domestic enterprises and Foreign Investment Enterprises (the “FIE”) are subject to a unified 25% enterprise income tax rate, except for certain entities that are entitled to tax holidays or exemptions. According to the Implementation Rules for the Law for Promoting Private Education in 2004, or the 2004 Implementing Rules, private schools, whether requiring reasonable returns or not, may enjoy preferential tax treatment. The 2004 Implementing Rules provide that the relevant authorities under the State Council may introduce preferential tax treatments and related policies applicable to private schools requiring reasonable returns. have historically benefitted from the corporate income exemption treatment since their Confirmed by the local tax authorities, the schools sponsored by the Group are exempt from income taxes for the years ended June 30, 2016, 2017 and 2018. The Company’s PRC counsel has confirmed that this tax exemption is not contrary to PRC tax laws. According to the 2016 Private Education Law effective as of September 1, 2017, private schools, whether non-profit or for-profit, may enjoy preferential tax treatment, and non-profit private schools will be entitled to similar tax benefits as public schools. However, taxation policies for for-profit private schools are still unclear as more specific provisions are not yet to be introduced and all the schools sponsored by the Group had not elected to change or re-register their statuses as of June 30, 2018. As such, the Group is unable to determine the overall taxation impact of the 2016 Private Education Law on the net revenues and profitability in future fiscal years. For the year ended June 30, 2018, the Company’s subsidiaries and consolidated affiliated companies in PRC, which mainly provide logistic services, management and consulting services, educational training services, after-school and overseas study consulting services, are subject to a unified 25% enterprise income tax rate. Thus, no income tax expense was recognized for the years ended June 30, 2016 and 2017. The Group recognized current income tax expenses of RMB 66,288 for the year ended June 30, 2018. The PRC tax system is subject to substantial uncertainties. There can be no assurance that changes in PRC tax laws or their interpretation or their application will not subject the Company’s PRC entities to substantial PRC taxes in the future. As of June 30, 2018, the Group had unused tax loss of RMB2,516 available for offset against future taxable profits, which will begin to expire as of June 30, 2019. No deferred tax assets have been recognized in respect of such tax losses due to the unpredictability of future taxable profit streams. Under the current EIT Law, dividends paid by an FIE to any of its foreign non-resident enterprise investors are subject to a 10% withholding tax. Thus, the dividends, if and when payable by the Company’s PRC subsidiaries to their offshore parent entities, would be subject to 10% withholding tax. A lower tax rate will be applied if such foreign non-resident enterprise investor’s jurisdiction of incorporation has signed a tax treaty or arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income with China. There is such a tax arrangement between PRC and Hong Kong. Thus, the dividends, if and when payable by the Company’s PRC subsidiaries to the offshore parent entities located in Hong Kong, would be subject to 5% withholding tax rather than statutory rate of 10% provided that the offshore entities located in Hong Kong meet the requirements stipulated by relevant PRC tax regulations. Furthermore, pursuant to the applicable circular and interpretations of the current EIT Law, dividends from earnings created prior to 2008 but distributed after 2008 are not subject to withholding income tax. The Company has not provided for deferred income tax liabilities on the PRC entities’ undistributed earnings of and RMB1,032,048 as of June 30, 2017 and 2018, respectively, because the Company controls the timing of the undistributed earnings and it is probable that such earnings will not be distributed. The Company plans to reinvest those earnings in the PRC indefinitely in the foreseeable future. Moreover, the current EIT Law treats enterprises established outside of China with “effective management and control” located in China as PRC resident enterprises for tax purposes. The term “effective management and control” is generally defined as exercising overall management and control over the business, personnel, accounting, properties, etc. of an enterprise. The Company, if considered a PRC resident enterprise for tax purposes, would be subject to the PRC Enterprise Income Tax at the rate of 25% on its worldwide income for the period after January 1, 2008. During the years ended June 30, 2016, 2017 and 2018, the Company did not carry out any substantial business operations and therefore was not subject to PRC taxes. Reconciliation between the provision for income tax computed by applying the PRC EIT rates of 25% in fiscal year 2016, 2017 and 2018 to income before income taxes and the actual provision for income tax was as follow: 2016 2017 2018 RMB RMB RMB Net income before provision for income tax 99,432 167,743 297,190 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 24,858 41,936 74,298 Effect of expenses that are not deductible in determining taxable profit — — 373 Effect of incomes that are not taxable in determining taxable profit — — (956 ) Unrecognized tax losses 133 2 70 Utilization of tax losses previously not recognized — (579 ) (46 ) Effect of income tax exemptions (24,991 ) (41,359 ) (7,451 ) Income tax expense recognized in profit or loss — — 66,288 |
Earnings per share
Earnings per share | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share [text block] | 8 Earnings per share The calculation of basic EPS has been based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding. The calculation of diluted EPS has been based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares. (i) Profit attributable to ordinary shareholders 2016 RMB 2017 RMB 2018 RMB Profit attributable to ordinary shareholders (basic and diluted) 99,432 167,743 222,588 (ii) Weighted-average number of ordinary shares 2016 2017 2018 Weighted average number of ordinary shares for basic EPS 410,439,562 411,208,000 411,878,478 Effects of dilution from Warrants 12,144 — 638,292 Weighted average number of ordinary shares adjusted for the effect of dilution 410,451,706 411,208,000 412,516,770 (iii) Earnings per share 2016 2017 2018 Basic and diluted earnings per share 0.24 0.41 0.54 |
Property and equipment
Property and equipment | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Disclosure of property, plant and equipment [text block] | 9 Property and equipment Motor vehicles RMB Furniture, fixtures and other equipment RMB Leasehold improvement RMB Construction in progress RMB Total RMB Cost Balance at June 30, 2015 19,108 32,318 182,884 97,184 331,494 Additions 828 75,039 — 558,760 634,627 Transferred from construction in progress — 59,609 524,857 (584,466 ) — Disposals (1,885 ) (699 ) (78,494 ) — (81,078 ) Balance at June 30, 2016 18,051 166,267 629,247 71,478 885,043 Additions 464 17,626 10,266 62,396 90,752 Transferred from construction in progress — 60,383 64,613 (124,996 ) — Disposals — (87 ) — — (87 ) Balance at June 30, 2017 18,515 244,189 704,126 8,878 975,708 Additions 4,454 22,331 21,415 48,209 96,409 Transferred from construction in progress — 5,098 45,446 (50,544 ) — Disposals (1,566 ) (8,584 ) (23,446 ) (1,013 ) (34,609 ) Balance at June 30, 2018 21,403 263,034 747,541 5,530 1,037,508 Accumulated depreciation Balance at June 30, 2015 (5,537 ) (21,152 ) (123,128 ) — (149,817 ) Depreciation for the year (3,714 ) (19,799 ) (41,525 ) — (65,038 ) Disposals 1,470 509 68,208 — 70,187 Balance at June 30, 2016 (7,781 ) (40,442 ) (96,445 ) — (144,668 ) Depreciation for the year (2,098 ) (41,746 ) (66,641 ) — (110,485 ) Disposals — 64 — — 64 Balance at June 30, 2017 (9,879 ) (82,124 ) (163,086 ) — (255,089 ) Depreciation for the year (4,476 ) (33,414 ) (75,238 ) — (113,128 ) Disposals 338 4,340 5,112 — 9,790 Balance at June 30, 2018 (14,017 ) (111,198 ) (233,212 ) — (358,427 ) Net book value At June 30, 2017 8,636 162,065 541,040 8,878 720,619 At June 30, 2018 7,386 151,836 514,329 5,530 679,081 In September 2015, Foreign Language and selected programs from Tianma Experimental and High relocated to the newly constructed Hailiang Education Park. Tianma Experimental’s and High’s remaining programs continue to operate on their existing respective campuses. As of June 30, 2016, the Group has ceased the lease of original campus site of Foreign Language, therefore, the leasehold improvement of the original campus of Foreign Language was written off, and the net book value of RMB10,286 was recognized as disposal loss of leasehold improvement in the statement of profit or loss and other comprehensive income. During the 2018 fiscal year, property and equipment with net book value of RMB23,433 were transferred out by the Group due to the disposal of Hailiang Kindergarten, Tianma Kindergarten and Chuzhou School. |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Jun. 30, 2018 | |
Intangible assets and goodwill [abstract] | |
Disclosure of intangible assets and goodwill [text block] | 10 Intangible assets and goodwill Goodwill RMB Student relationship RMB Trademark RMB Total RMB Cost Balance at July 1, 2015, June 30, 2016, 2017 62,046 45,037 16,540 123,623 Disposals of component (406 ) — — (406 ) Balance at June 30, 2018 61,640 45,037 16,540 123,217 Accumulated Amortization Balance at June 30, 2015 — (42,414 ) — (42,414 ) Amortization for the year — (948 ) — (948 ) Balance at June 30, 2016 — (43,362 ) — (43,362 ) Amortization for the year — (662 ) — (662 ) Balance at June 30, 2017 — (44,024 ) — (44,024 ) Amortization for the year — (446 ) — (446 ) Balance at June 30, 2018 — (44,470 ) — (44,470 ) Net book value At June 30, 2017 62,046 1,013 16,540 79,599 At June 30, 2018 61,640 567 16,540 78,747 Intangible assets and goodwill arose from the acquisition of Tianma Experimental on July 1, 2009. In February 2018, the entered into an asset restructuring agreement, pursuant to which all the assets and liabilities related to the CGU of Tianma Kindergarten was sold to Zhuji Hailiang Preschool Investment Co., Ltd, a related party of the . Thus, the goodwill with an amount of RMB406 allocated to Tianma Kindergarten was spin off from the . Student relationship The amortization of student relationship is included in “selling expenses”. No impairment loss of the student relationship intangible asset was recognized in the statements of profit or loss and other comprehensive income for the years ended June 30, 2016, 2017 and 2018. Goodwill and trademark with indefinite useful lives For the purpose of impairment testing, goodwill and trademark are allocated to a group of CGUs which represents the lowest level within the Group at which the goodwill and trademark are monitored for internal management purpose. The recoverable amount of goodwill is estimated based on discounted cash flows forecast, which is based upon a combination of long term trends, industry forecasts and in house estimates. For the purpose of impairment testing, the carrying amounts of goodwill and trademark are allocated to Tianma Experimental, which is the lowest level for which the assets are monitored for internal management purpose. The aggregated carrying amounts of goodwill and trademark are as follows: 2017 RMB 2018 RMB Goodwill 62,046 61,640 Trademark 16,540 16,540 Total 78,586 78,180 The recoverable amount of this CGU was based on fair value less costs of disposal, which was estimated using discounted cash flow projections. The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used (see Note 2(e)). The key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key assumptions represented management’s assessment of future trends in the relevant industry and were based on historical data from both external and internal sources. In percent 2016 2017 2018 Discount rate 24 % 24 % 15 % Terminal value growth rate 3 % 3 % 3 % The discount rate was a post-tax measure estimated based on the historical industry average weighted-average cost of capital, with a possible debt leveraging of 0%. The cash flow projections included the following specific estimates for five years and a terminal growth rate thereafter. The terminal growth rate was determined based on management’s estimate, consistent with the assumption that a market participant would make. • Revenue growth was projected considering the average growth levels experienced over the past five years and the estimated student headcount and tuition growth for the next five years. It was assumed that tuition would increase in line with forecast inflation over the next five years. • Growth of cost of sales, selling expenses and administrative expenses were projected considering inflation and estimated student headcount for the next five years. The estimated recoverable amount of the CGU exceeded its carrying amount as of June 30, 2016, 2017 and 2018, respectively. The recoverable amount of trademark is determined using the relief from royalty method, which was based on post-tax cash flow projections for 5 years based on financial budgets approved by management, including royalty rate of 3% (2017 and 2016: 3%), terminal growth rate of 3% (2017 and 2016: 3%) and the applicable discount rate of 15% (2017 and 2016: 24%). Management determined the expected growth rates and the operating results based on the past performance and its expectations in relation to market developments. The discount rate used is post-tax and reflects specific risks relating to the Company. Based on management’s assessment results, there was no impairment of goodwill and trademark as at June 30, 2016, 2017 and 2018 and no reasonable change to the assumptions would lead to an impairment charge. |
Prepayments to third party supp
Prepayments to third party suppliers | 12 Months Ended |
Jun. 30, 2018 | |
Current prepayments [abstract] | |
Disclosure of prepayments to third party suppliers [text block] | 11 Prepayments to third party suppliers 2017 RMB 2018 RMB Prepayments to third party suppliers 5,692 92 The amount mainly represents the down payments made to certain third party vendors for the purchase of equipment and leasehold improvements. |
Other current assets
Other current assets | 12 Months Ended |
Jun. 30, 2018 | |
Other current assets [Abstract] | |
Disclosure of other current assets [text block] | 12 Other current assets 2017 RMB 2018 RMB Other receivables due from third parties 1,526 15,182 The es. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Disclosure of cash and cash equivalents [text block] | 13 Cash and cash equivalents 2017 RMB 2018 RMB Cash on hand 21 30 Cash at bank 16,065 71,857 Cash held at a related party finance entity 61,715 740,733 Total 77,801 812,620 Cash at bank consists of demand deposits and call deposits with term less than one month, and is held by third party financial institutions located in the PRC (including Hong Kong). Cash held at a related party finance entity represents cash demand deposits, 7-day call deposits and term deposit of three months or less held at Hailiang Finance Co., Ltd. (“Hailiang Finance”) (see Note 19(b)(ii)). As of June 30, 2017 and 2018, the cash and cash equivalents of the Group denominated in RMB amount to RMB62,030 and RMB799,147, respectively. |
Share-based payment
Share-based payment | 12 Months Ended |
Jun. 30, 2018 | |
Share based payment [Abstract] | |
Disclosure of share-based payment arrangements [text block] | 14 Share-based payment In conjunction with the IPO financing completed in July 2015, the Company agreed to issue to Network 1 Financial Securities, Inc. (“the Underwriter”) and its designees a warrant for the purchase of 142,900 ADSs, equal to 5% of the aggregate number of ADSs sold in the IPO. The Underwriter’s warrant shall be exercisable, in whole or in part, during a period commencing on a date that is six months after the closing of the Company’s IPO, which is January 6, 2016, and expiring on the three-year anniversary of the closing of the Company’s IPO at an initial exercise price per ADS of US$8.75, which is equal to 125% of the IPO price of the ADSs. The fair value of the warrant provided by an independent appraiser was approximately RMB1,707 As of June 30, 2017, none of the warrants was exercised. In December 2017, all the warrants were exercised into common shares in cashless method. Issuance Date Expected volatility 50.96 % Risk-free interest rate 0.96 % Expected dividend — Expected life of the warrant 3 years Fair value of conversion share US$7.0 On September 14, 2015, the Company entered into a Business Consulting Service Agreement with a consultant which provided the Company advice, consultation, information and service that is consistent with the expertise of the consultant. In conjunction, the Company agreed to pay and deliver to the consultant and its designees or nominees 480,000 ordinary shares, par value USD0.0001 per share, of the Company, with restricted period of 6 months. The fair value of the restricted shares provided by an independent appraiser was approximately RMB1,459 (USD229), which was charged to share capital and share premium. Issuance Date Expected volatility 55.56 % Risk-free interest rate 0.293 % Expected dividend — Expected life of the restricted shares 0.5 year Hypothetical fair value of conversion share US$1.0 |
Capital and reserve
Capital and reserve | 12 Months Ended |
Jun. 30, 2018 | |
Capital and reserve [Abstract] | |
Disclosure of capital and reserve explanatory [text block] | 15 Capital and reserve (a) Share capital and share premium 2016 2017 2018 At June 30 par value USD0.0001 -authorized 1,000,000,000 1,000,000,000 1,000,000,000 -issued and outstanding 411,208,000 411,208,000 412,450,256 All ordinary shares rank equally. (i) Ordinary shares Holders of these shares are entitled to dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company. In March 2012, in connection with a private placement by a third party investor, the Board resolved to increase the authorized ordinary shares from 360,000,000 shares to 365,000,000 shares. Concurrently, 5,000,000 newly authorized ordinary shares were issued to Maxida International Company Limited (“Maxida”). The Company received cash proceeds of USD3,000 (equivalent to RMB18,867) from Maxida in exchange for 1.4% equity interest in the Company. In December 2014, the Board resolved to increase the authorized ordinary shares from 365,000,000 shares to 1,000,000,000 shares. In July, 2015, the Company completed an IPO in the US market, in which the Company issued 2,858,000 American depositary shares, or ADSs (equal to 45,728,000 ordinary shares), at a public offering price of US$7 per ADS. Each ADS represents 16 ordinary shares, par value USD0.0001 per share. In September, 2015, the Company granted 480,000 restricted shares to a consultant as a consideration for its service rendered. Per valuation of the restricted shares, the fair value of 480,000 shares is USD229 (equivalent to RMB1,459). On December 15 , 2017 , all the warrants issued to the Underwriter were exercised into 77,641 ADSs (equal to 1,242,256 ordinary shares). (ii) Share premium Share premium relates to the following issuances of the Company’s ordinary shares: (1) Share deficit of RMB236 for ordinary shares issued by the Company to Mr. Feng for nil consideration upon the Company’s incorporation in 2011. (2) The capital contributed by Maxida in excess of the par value of the ordinary shares issued in the private placement of RMB18,864 in 2012. (3) The gross proceeds of RMB122,369 received from IPO deducting the issuance cost of RMB9,551 and par value of ordinary shares issued to public of RMB28, with net proceed of RMB112,790 in July, 2015. (4) The fair value of warrant issues to the Underwriter of RMB1,707 upon completion of IPO. (5) The fair value of restricted shares issued to consultant in September, 2015, in excess of par value of ordinary issued of RMB 1,459 (6) On December 15, 2017 , all the warrants issued to the Underwriter were exercised into 77,641 ADSs (equal to 1,242,256 ordinary shares). (iii) Contributed capital Contributed capital represented the following capital transactions with the Company’s shareholders: (1) The contributions of the registered capital of 100% of Foreign Language and 60% of High made by Mr. Feng totaling RMB82,800. (2) The consideration of RMB110,000 made by Mr. Feng for the acquisition of 80% equity interest in Tianma Experimental. (3) The share capital of HKD 10 9 (4) RMB32,906 arising from acquisition of non-controlling interests. In November 2011, Mr. Feng acquired 40% registered capital equity interest in High and 20% registered capital equity interest in Tianma Experimental from Mr. Meng, the non-controlling shareholder of both schools for cash considerations of RMB35,000 and RMB6,000, respectively. Upon the acquisitions, Mr. Feng became the sole sponsor of High and Tianma Experimental and owned 100% registered capital equity interest in each of the two schools. The non-controlling interests’ proportionate shares of the net identifiable assets of High and Tianma Experimental on the date of the acquisitions were RMB28,790 and RMB4,116, respectively. The aggregate cash consideration of RMB41,000 paid by Mr. Feng for the acquisitions was recorded in contributed capital. The difference between the cash consideration paid of RMB41,000 and the total carrying amount of the non-controlling interests of RMB32,906, which amounted to RMB8,094, was charge to deduct contributed capital within equity. (5) The capital contributions of RMB139,980 paid by Mr. Feng upon incorporation of Hailiang Management. (6) Cash consideration of RMB139,800 paid to Mr. Feng for the transfer of 100% registered capital equity interest in each of the (7) Capital contribution of RMB10,000 from Hailiang Education Management Group Co., Ltd a related party controlled by Mr. Feng Hailiang, through waiving liability. (b) Reserves (i) Statutory reserve As stipulated by relevant PRC laws and regulations, the Company’s subsidiaries and affiliated entities in the PRC must take appropriations from after-tax profit to non-distributive funds. These reserves include general reserve and the development reserve. The general reserve requires annual appropriation 10% of after-tax profits at each year-end until the balance reaches 50% of the PRC company’s registered capital. The other reserve is set aside at the Company’s discretion. These reserves can only be used for general enterprise expansion and are not distributable as cash dividends. The general reserve as of June 30, 2017 and 2018 was nil and RMB20,096, respectively. Each of the schools is required to appropriate 25% of its after-tax profits to a non-distributable education development reserve for the construction or maintenance of the school or procurement or upgrading of educational equipment. In accordance with the Law of Promoting Private Education, this reserve can only be used for school construction, maintenance and upgrade of education equipment. The development reserve is restricted net assets of the schools which are un-distributable to the Company in the form of dividends or loans. The education development reserve as of June 30, 2017 and 2018 was RMB267,358 and RMB284,427, respectively. (ii) Translation reserve The translation reserve comprises foreign currency differences arising from the translation of the financial statements of the Company’s subsidiaries into the presentation currency. |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Non controlling Interest [Abstract] | |
Disclosure of non-controlling interests [text block] | 16 Non-controlling interests Non-controlling interests represent 44 % equity . The following table summarizes the changes in non-controlling interests from June 30, 2017 through June 30, 2018 . Haibo Education Haibo Logistic Total RMB RMB RMB Balance at June 30, 2017 — — — Transfer of equity interests to non-controlling interest shareholders (19(a)(x)) 2,640 2,200 4,840 Net profit attributed to non-controlling interest shareholders 6,750 1,564 8,314 Balance at June 30, 2018 9,390 3,764 13,154 |
Trade and other payables
Trade and other payables | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other payables [abstract] | |
Disclosure of trade and other payables [text block] | 17 Trade and other payables 2017 RMB 2018 RMB Trade payable 22,662 22,309 Accrued payroll 50,013 68,351 Amount due to third parties 41,188 50,844 Trade and other payables 113,863 141,504 Amount due to related parties 124,841 138,215 Total 238,704 279,719 As of June 30, 2018, vendors. The Group’s exposure to liquidity risk related to trade and other payables is disclosed in Note 18. |
Financial risk management and f
Financial risk management and fair values | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Financial risk management and fair values [Abstract] | |
Disclosure of financial risk management [text block] | 18 Financial risk management and fair values The Group has exposure to the following risks from financial instruments: • credit risk • liquidity risk • market rate risk This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital. The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. (a) Credit risk The Group’s credit risk is primarily attributable to cash at bank, cash and term deposits held at a related party finance entity The carrying amount of financial assets represents the maximum credit exposure. Cash at bank All of the Group’s cash at bank is held by third-party financial institutions located in the PRC (including Hong Kong). Financial institutions in the PRC do not have insurance similar to that provided by the Federal Deposit Insurance Corporation in the United States of America. Cash and term deposit placed with a related party finance entity As of June 30, 2018, the Group had cash of RMB740,733 and term deposit of RMB204,000 at Hailiang Finance, which represented 84% of the Group’s consolidated current assets as of June 30, 2018. Hailiang Group, an entity controlled by Mr. Feng, established a finance Group, namely, Hailiang Finance, which is licensed to provide intra-Group financing arrangements within Hailiang Group’s subsidiaries and other related party companies. The establishment of Hailiang Finance was approved by the China Banking Regulatory Commission (“CBRC”) as a non-banking financial institution to solely facilitate Hailiang Group’s internal financing transactions including issuing loans to and accepting cash deposits from its subsidiaries and other related party entities. Pursuant to the license issued by CBRC, Hailiang Finance is not permitted to make any loans or accept any deposits from any parties that are unrelated to Hailiang Group, except for inter-bank transactions with other unrelated commercial banks. Since September 2014, Management believes that the credit risk on the Group’s cash of RMB740,733 and term deposit of RMB204,000 is low considering Hailiang Group’s guarantee and credit rating. To reduce its credit exposure with Hailiang Finance, the Group provided an annual budget for the aggregate amount deposit with Hailiang Finance as RMB1,200,000 based on current policy effective September 2017. Other receivables due from related parties and other current assets In order to minimize the credit risk on other receivables due from related parties and other current asset, the management of the Group makes periodic collective assessments on the recoverability of receivables based on historical settlement records and past experience. Management believes that there is no material credit risk on the Group's other receivables due from related parties of RMB95,128 and other current assets of RMB15,182. (b) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The following are the contractual maturities of financial liabilities, including estimated interest payments: June 30, 2017 Non-derivative financial instruments Carrying amount Contractual cash flows 1 year or less RMB RMB RMB Trade and other payables 238,704 238,704 238,704 June 30, 2018 Non-derivative financial instruments Carrying amount Contractual cash flows 1 year or less RMB RMB RMB Trade and other payables 279,719 279,719 279,719 (c) Market rate risk Interest rate risk The interest rates of cash held in bank and deposits placed with Hailiang Finance ranged from 0.35% to 1.43% per annum for the years ended June 30, 2017, and ranged from 0.35% to 1.82% per annum for the years ended June 30, 2018. The Group does not have any fixed-rate or variable-rate financial instrument other than cash and cash equivalent, and term deposits placed with a related party finance entity. A change of 10 basis point in interest rate would have increased or decreased the Group’s post-tax profit and equity by RMB479 and RMB1,016 as of June 30, 2017 and 2018, respectively. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant. Currency risk Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operation in Cayman Island that the currencies in which these transactions are primarily denominated USD. The following table demonstrates the sensitivity at the end of the reporting period to a reasonably possible change in the exchange rate of RMB against USD, with all variables held constant, of the Group’s profit before tax and the Group’s equity. Change in USD rate Effect on profit before tax Effect on equity June 30, 2018 +5 % — 5,393 -5 % — (5,393 ) June 30, 2017 +5 % — 6,046 -5 % — (6,046 ) (d) Fair value The carrying amounts of financial assets and liabilities approximate their respective fair values as at June 30, 2017 and 2018, respectively, due to their short-term maturities. (e) Capital management The Group actively and regularly reviews and manages its capital structure to maintain a balance between higher shareholders’ return that might be possible with higher levels of borrowings, and makes adjustments to the capital structure in light of changes in economic conditions. The Group is not subject to externally imposed capital requirements. |
Related parties transactions
Related parties transactions | 12 Months Ended |
Jun. 30, 2018 | |
Related party [Abstract] | |
Disclosure of related party [text block] | 19 Related parties transactions The Group entered into significant transactions with related parties during each of the years in the three-year period ended June 30, 2018. (a) The significant related party transactions are summarized as follows: 2016 2017 2018 Note RMB RMB RMB Loans made from a related party (i) — 99,603 7,609 Loans made to a related party (i) — 98,229 — Interest income from deposits placed with a related party finance entity (ii) 2,683 5,847 11,464 Net deposits/(withdrawals) of cash at a related party finance entity (ii) 81,716 (109,998 ) 679,018 Term deposits placed with a related party finance entity (ii) 1,212,430 1,953,600 204,000 Maturity of term deposits placed with a related party finance entity (ii) 1,272,430 1,552,600 401,000 Rental expenses (iii) 25,433 30,030 32,486 Expenses paid by a related party on behalf of the Group (iv) 3,356 3,836 4,612 Repayment of expenses paid by a related party on behalf of the Group (iv) 1,782 4,536 4,124 Expenses paid by the Group on behalf of a related party (iv) 11,567 — 9,401 Repayment of expenses paid by the Group on behalf of a related party (iv) — — 8,794 Payments of leasehold improvement to a related party (iv)(v) 22,661 29,406 24,280 Purchase of healthy food from a related party (vi) 48,517 48,298 38,323 Product sale revenue and service fee from a related party (vii) 1,962 3,766 17,247 Service fee paid to a related party (viii) — — 6,884 Waive of liability to a related party (iii) — 10,000 — Gains from disposal of affiliated entities to a related party (ix) — — 5,349 Acquisition payment to a related party (x) — — 6,160 (b) The significant related party balances are summarized as follows: 2017 2018 Note RMB RMB Amount due from a related party (i)(ii)(iii)(iv) 112,773 95,128 Cash held at a related party finance entity (ii) 61,715 740,733 Term deposits placed with a related party finance entity (ii) 401,000 204,000 Amount due to related parties (i)(iii)(iv)(v)(vi) 124,841 138,215 The Company’s majority shareholder, Mr. Feng owns or controls other non-educational services businesses (“Related Party Companies”) that from time to time require short-term financing to support their business operations and working capital needs. After considering the cash on hand and forecasted cash flows to fund its operations, the Group issued financing to Related Party Companies during the periods presented. (i) On October 31, 2016, the Company provided a one-year-period loan to Hong Kong Leonit Limited (“Leonit”) amounting to USD14,500, approximately RMB98,229 (“USD Loan”). On the same date, Hailiang Consulting made a one-year-period loan from Hailiang Group Co., Ltd amounting to RMB99,603 with interest free (“RMB Loan”). On October 9, 2017, the Company agreed to extend the loan with Leonit, pursuant to which the USD Loan’s due date was extended to due October 30, 2018. Similarly, Hailiang Group and Hailiang Consulting agreed to a loan extension pursuant to which the RMB Loan was due on October 30, 2018. Through an understanding among the aforementioned parties, the USD Loans are “secured” by the RMB Loan. It is the understanding among the parties that when the USD Loan is repaid, the RMB Loan will similarly be repaid. On December 5, 2017, the Company made a one-year-period loan from Leonit amounting to USD1,150, approximately RMB7,609 The loan of RMB98,229 made to Leonit recognized in “Amount due from related parties”, and the loan of RMB99,603 made from Hailiang Group was recognized in “Amount due to related parties” as of June 30, 2018. (ii) As at June 30, 2017 and 2018, the Group has cash in a related party finance entity of RMB61,715 and RMB740,733, respectively. During the years ended June 30, 2016 and 2018, net amount of RMB81,716 and RMB679,018 were placed with Hailiang Finance, respectively. During the year ended June 30, 2017, net amount of RMB109,998 were withdrawn from Hailiang Finance. The cash in a related party finance entity are held for the purpose of meeting short-term cash commitments, such as to pay for the Group’s operating expenses at any time. As at June 30, 2017 and 2018, the Group has term deposits with maturities ranging from three months to less than one year amounting to RMB401,000 and RMB204,000 that are placed at Hailiang Finance, respectively. During the years ended June 30, 2016, 2017 and 2018, term deposits of RMB1,212,430, RMB1,953,600 and RMB204,000 was placed with Hailiang Finance, of which RMB1,272,430, RMB1,552,600 and RMB401,000 matured, respectively. The term deposits are held for investment purpose and can be withdrawn prior to their maturity without incurring significant penalties. Such amounts have been presented as investing activities in the statements of cash flows. The interest income from the deposits during the years ended June 30, 2016, 2017 and 2018 amounted to RMB2,683, RMB5,847 and RMB11,464, respectively. (iii) Each of the schools leases the school buildings and the related facilities from Hailiang Investment, a related party controlled by Mr. Feng. Haibo Education leases the office space from Nanchang Hongtou Property Management Co., Ltd, a related party owned by the Group’s non-controlling shareholder. The leasing term and rental amount of each of the three follows: 2016 2017 2018 Leasing Period RMB RMB RMB Foreign Language July 1, 2009 ~ September 1, 2015 166 — — Experimental High July 1, 2017 ~ June 30,2037 7,000 7,350 7,718 Tianma Experimental July 1, 2015 ~ June 30,2035 1,600 1,680 1,764 Hailiang Education Park September 1, 2017 ~ August 31, 2037 16,667 21,000 21,483 Haibo Education — — 1,521 Total 25,433 30,030 32,486 During the years ended June 30, 2016, 2017 and 2018, the Group paid rental fees of RMB25,783, RMB27,300 and RMB15,956, respectively. Hailiang Investment waived the 2013 and 2014 rental fees with an amount of RMB10,000 in the year ended June 30, 2017. Amount due to Hailiang Investment was RMB739 as of June 30, 2018, which was included in the “Amount due to related parties”. The prepaid rental fee to Hailiang Investment as of June 30, 2017 was RMB14,270 which was included in the “Amount due from related parties”. (iv) During the years ended June 30, 2016, 2017 and 2018, Hailiang Group paid professional service fees and other expenses of RMB3,356, RMB3,836 and RMB4,612 on behalf of the Group, respectively. Such amount is due and payable on demand, and the Group repaid RMB1,782, RMB4,536 and RMB4,124 to Hailiang Group during the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2016, the Group paid RMB11,567 on behalf of Hailiang Hospital for leasehold improvement, the balance has been fully returned to the Group on September 21, 2016. During the year ended June 30, 2018, the Group paid expenses of RMB4,259, RMB2,764, RMB1,016 and RMB1,181 on behalf of Preschool, Hailiang Kindergarten, Hailiang Investment, Hailiang Hospital, respectively. Such amounts are receivable on demand, and the related parties aforementioned repaid RMB4,422, RMB3,135, RMB1,014 and RMB163 during the year ended June 30, 2018, respectively. The unpaid expenses due to related parties and the uncollected amount due from related parties was included in “Amount due to related parties” and “Amount due from related parties” as of June 30, 2016, 2017 and 2018, respectively. (v) The Group entered into a series of leasehold improvement contracts with Heng Zhong Da for the leasehold improvement of classroom buildings, dining halls, student dormitories and amount of the contracts was RMB19,680, RMB34,626 and RMB23,174 for the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2018, Heng Zhong Da has provided service and improvement of RMB352,287 (RMB285,958, RMB37,231 and RMB29,098 in fiscal year 2016, 2017 and 2018), which was recorded in “Property and Equipment”. The Group has paid RMB22,661, RMB29,406 and RMB24,280 to Heng Zhong Da during the years ended June 30, 2016, 2017 and 2018, respectively. The accumulate payment included the payment of RMB11,567 on behalf of Hailiang RMB19,508 as of June 30, 2018 was . (vi) The Group purchased healthy food products from Ming Kang Hui Health Food Group Co., Ltd. and Ming Kang Hui Ecological Agriculture Group Co., Ltd. (collectively referred as “Ming Kang Hui”), two companies owned by Hailiang Group, amounting to RMB48,517, RMB48,298 and RMB38,323 during the years ended June 30, 2016, 2017 and 2018, respectively. The amount due to Ming Kang Hui was RMB30,005, RMB6,876 and RMB5,386 as of June 30, 2016, 2017 and 2018, respectively. (vii) The products sold, services provided to related parties are as follow: 2016 2017 2018 RMB RMB RMB Management Service Fee (1) — — 12,275 Service fee from Ming Kang Hui Supermarket (2) 1,962 3,766 4,556 Hotel Service Fee — — 268 Product Sale — — 148 Total 1,962 3,766 17,247 (1) Pursuant to the strategic cooperation agreement signed with Hailiang Group and Hailiang Investment, the Group provided management services to schools acquired by Hailiang Investment, including Hubei Xiantao of RMB12,275 was charged from the abovementioned schools during the year ended June 30, 2018. (2) The Group charged service fee from supermarkets, which are operated by Ming Kang Hui in campuses, amounting to RMB1,962, RMB3,766 and RMB4,556 during the years ended June 30, 2016, 2017 and 2018, respectively. (viii) The Group paid information service fee to Hangzhou Mingxin Information Technology Co., amounting to RMB6,884 during the year ended June 30, 2018. (ix) The gains were recognized from disposal of Hailiang Kindergarten, Tianma Kindergarten and Chuzhou School (see Note 6 (iv) for additional details), amounting to RMB3,285, RMB1,683 the year ended June 30, 2018, respectively. (x) In August 2017, Haibo Education and Haibo Logistics were incorporated by Xinyu Baishu, an entity ultimately controlled by Mr. Feng. The contributed capital from Xinyu Baishu was RMB6,000 and RMB5,000, respectively. In January 2018, Xinyu Baishu transferred 56% equity interests in Haibo Education and Haibo Logistics to Ningbo Haoliang with considerations of RMB3,360 and RMB2,800, respectively. The considerations were equivalent to the cost of 56% of the contributed capital since Haibo Education and Haibo Logistics had no substantive operation as of the acquisition date. Haibo Education and Haibo Logistics were under common control with the Company both immediately before and after the acquisition, and the Company recognized the assets and liabilities of Haibo Education and Haibo Logistics at historical cost. In January 2018, Xinyu Baishu also transferred the remaining 44% equity interest in Haibo Education and Haibo Logistics to Nanchang Baishu, a related party of the Company. The 44% equity interests owned by Nanchang Baishu were reocorded as non-controlling interests (see note 16). (c) Transactions with key management personnel Remuneration of the directors and key management personnel of the Group for the years ended June 30, 2016, 2017 and 2018 are as follows: 2016 2017 2018 RMB RMB RMB Compensation 6,383 7,614 8,162 Total remuneration is included in “employee benefit expenses” (Note 5). |
Segment information
Segment information | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Operating Segment information [Abstract] | |
Disclosure of operating segments [text block] | 20 Segment information The Group’s chief operating decision maker (“CODM”) has been identified as Mr. Ming Wang, the chief executive officer of the Group, who reviewed the financial information of operating segments when making decisions to allocate resources and assess performance of the Group. For the years ended June 30, 2016 and 2017, the Group identified one operating segment, which was the provision of private K-12 educational services. During the year ended June 30, 2018, the Group identified seven segments, including K-12 educational program, after-school enrichment program, management consulting services, logistic services, educational training, overseas study consulting services and hotel management. K-12 educational program and after-school enrichment program were aggregated as a reporting segment “K-12 educational services”, since both segments offer educational services to students in schools sponsored by the Group and are regulated by local education bureau. Management consulting services and logistic services were aggregated as a reporting segment “management services”, considering that both segments provide services to schools sponsored and managed by the Group and the business nature is similar. Educational training, overseas study consulting services and hotel management were aggregated as others since individually they do not exceed 10% quantitative threshold of combined revenue, profit or assets. The revenue and operating resu lts by segments were as follows: For the year ended June 30, 2016 K-12 educational services Management services Others Unallocated* Consolidated RMB RMB RMB RMB RMB Segment revenue 654,060 — — — 654,060 Consolidated revenue 654,060 — — — 654,060 Segment profit/(loss) before tax 112,944 — — (13,512 ) 99,432 Consolidated profit (loss) before tax 112,944 — — (13,512 ) 99,432 Interest income 4,900 6 4,906 Depreciation and amortization 65,986 — — — 65,986 For the year ended June 30, 2017 K-12 educational services Management services Others Unallocated* Consolidated RMB RMB RMB RMB RMB Segment revenue 853,295 — — — 853,295 Consolidated revenue 853,295 — — — 853,295 Segment profit before tax 165,353 — — 2,390 167,743 Consolidated profit before tax 165,353 — — 2,390 167,743 Interest income 5,980 729 6,709 Depreciation and amortization 111,147 — — — 111,147 For the year ended June 30, 2018 K-12 Management Others Unallocated* Consolidated RMB RMB RMB RMB RMB Segment revenue 1,093,933 117,057 71,332 — 1,282,322 Elimination of inter-segment transactions — (98,036 ) (14,938 ) — (112,974 ) Consolidated revenue 1,093,933 19,021 56,394 — 1,169,348 Segment profit/(loss) before tax 209,407 67,180 29,977 (9,374 ) 297,190 Elimination of inter-segment transactions 112,974 (98,036 ) (14,938 ) — — Consolidated profit/(loss) before tax 322,381 (30,856 ) 15,039 (9,374 ) 297,190 Interest income 7,059 24 270 4,362 11,715 Depreciation and amortization 104,225 29 9,320 — 113,574 *Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. The Group’s CODM does not review the financial position by operating segments, thus no total assets of each operating segment presented. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of commitments and contingencies [Abstract] | |
Disclosure of commitments [text block] | 21 Commitments and contingencies (a) Capital commitments Capital commitments, which are primarily related to the campus decoration are as follows: 2017 2018 RMB RMB Contracted, but not provided for: Leasehold improvement 17,821 14,988 (b) Operating lease commitments, which are primarily with a related parties, are as follows: 2017 2018 RMB RMB within one year 31,515 33,764 one year to five years 132,884 145,016 Five years thereafter 436,819 497,468 601,218 676,248 |
Subsequent events
Subsequent events | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Disclosure of events after reporting period [text block] | 22 Subsequent events (a) Establishment of new subsidiary and affiliated entity On August 2, 2018, Zhuji Hailiang After-school Service Co., Ltd. (“Hailiang After-school Service”) was incorporated as Ningbo Haoliang’s wholly owned subsidiary. Hailiang After-school Service’s mainly engaged in the provision of after-school enrichment program. On August 2, 2018, Hailiang Management incorporated Zhejiang Mingxin International travel Co., Ltd (“Mingxin International Travel”) as its wholly owned entity. Mingxin International Travel is mainly engaged in the provision of overseas study trip for students in the Group’s affiliated and managed schools. In September 26, 2018, Zhuji Hailiang Logistics Service Co., Ltd. (“Zhuji Hailiang Logistics”) and Zhuji Hailiang Supply Chain Management Co., Ltd. (“Zhuji Hailiang Supply”) were incorporated as Ningbo Hailiang’s wholly controlled subsidiaries. Zhuji Hailiang Logistics is mainly engaged in providing logistic services for the Company’s affiliated schools. Zhuji Hailiang Supply is engaged in the provision of purchasing and transportation services for affiliated schools. In September 26, 2018, Hailiang Education International Studying Service Limited (“Hailiang International Studying”) was established as Hailiang HK’s wholly owned subsidiary and planned to provide consulting services for oversea studies. On October 9, 2018, Pate's-Hailiang International College Company Limited (“PHIC company”) was incorporated in United Kingdom, as Hailiang International Studying’s wholly owned subsidiary. PHIC company is mainly engaged in the operation of international study programs. (b) Establishment and acquisition of for-profit schools On August 28, 2018, Hailiang Management incorporated Zhuji Hailiang Foreign Language High School Co., Ltd. (“Zhuji Hailiang Foreign Language”) as the first for-profit school of the Group. As of the reporting date, nearly 1,500 students enrolled in Zhuji Hailiang Foreign Language, among which, about 1,200 students were transferred from the high school level of Hailiang Foreign Language School. In order to expand the network coverage and/or businesses that are complementary to the Group’s core expertise in K-12 educational services, Hailiang Management entered into an Investment Cooperation Agreement to acquire 51% equity interest in Zhenjiang Jianghe High School of Art Co., Ltd. on September 28, 2018. Zhenjiang Jianghe High School of Art Co., Ltd. is a for-profit high school specializing in the arts education. (c) Provision of education and management services to another seven schools Between June 30, 2018 and the date of annual report, the Company started to provide education and management services to another two private schools namely Jinhua Hailiang Foreign Language School and Feicheng Hailiang Foreign Language School, and five public schools namely Xiaoshan District Wenyan Primary School, Xiaoshan District Wenyan No. 2 Primary School, Xiaoshan District Wenyan Middle School, Hangzhou Chunhui Primary School and Hangzhou Xixing Middle School in Zhejiang province. |
Parent company financial statem
Parent company financial statement | 12 Months Ended |
Jun. 30, 2018 | |
Condensed financial statements [Abstract] | |
Disclosure of detailed information about condensed financial statements [text block] | 23 Parent company financial statement The following presents Hailiang Education Group Inc. or parent only financial information. HAILIANG EDUCATION GROUP INC. CONDENSED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS FOR THE YEARS ENDED JUNE 30, 2016, 2017 AND 2018 (Amounts in thousands) 2016 2017 2018 RMB RMB RMB Revenue — — — Cost of revenue — — (2,299 ) Gross profit — — (2,299 ) Other income, net — — — Selling expenses — — — Administrative expenses (10,195 ) (4,148 ) (9,124 ) Operating loss (10,195 ) (4,148 ) (11,423 ) Net finance expenses (7 ) (8 ) (17 ) Loss before tax (10,202 ) (4,156 ) (11,440 ) Income tax expense — — — Loss (10,202 ) (4,156 ) (11,440 ) Other comprehensive income (loss)-foreign currency translation differences 9,980 2,643 (3,016 ) Total comprehensive loss (222 ) (1,513 ) (14,456 ) HAILIANG EDUCATION GROUP INC. CONDENSED STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2017 AND 2018 (Amounts in thousands) 2017 RMB 2018 RMB Assets Other receivables from subsidiaries 20,178 20,330 Other receivable from related parties 98,229 86,997 Cash 2,508 526 Current assets 2,508 107,853 Total assets 120,915 107,853 Shareholders’ equity Share capital 267 268 Share premium 134,584 134,583 Translation reserve 12,126 9,110 Accumulated losses (26,063 ) (37,503 ) Total shareholders’ equity 120,914 106,458 Liabilities Other payables due to third parties — 1,393 Other payables due to related parties 1 2 Current liabilities 1 1,395 Total liabilities 1 1,395 Total shareholders’ equity and liabilities 120,915 107,853 HAILIANG EDUCATION GROUP INC. CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2016, 2017 AND 2018 (Amounts in thousands) 2016 2017 2018 RMB RMB RMB Cash flows from operating activities Loss for the year (10,202 ) (4,156 ) (11,440 ) Adjustments for: Share based payment 1,459 — — Change in other payables due to third parties (7,141 ) (1,851 ) 1,393 Change in other payables due to a related party (2,087 ) (651 ) 1 Change in other receivable due from subsidiaries (1,487 ) (347 ) (152 ) Change in other receivable due from related parties — — 3,623 Net cash used in operating activities (19,458 ) (7,005 ) (6,575 ) Cash flows from investing activities Loan made to a related party — (98,229 ) — Net cash used in investing activities — (98,229 ) — Cash flows from financing activities Proceeds from issue of ordinary shares 122,369 — — Payment of new shares issuance cost (7,844 ) — — Loan made from related parties — — 7,609 Net cash from financing activities 114,525 — 7,609 Net foreign exchange loss/(gain) 9,980 2,642 (3,016 ) Net increase/(decrease) in cash 105,047 (102,592 ) (1,982 ) Cash at the beginning of the year 53 105,100 2,508 Cash at end of the year 105,100 2,508 526 |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of summary of significant accounting policies [Abstract] | |
Business combinations | (a) Basis of consolidation (i) Business combinations The Group accounts for business combinations (except entities acquired under common control) using the acquisition method when control is transferred to the Group (see 3(a)(ii)). The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment (see 3(f)(ii)). Any gain on a bargain purchase is recognized in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise, other contingent consideration is re-measured at fair value at each reporting date and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss. If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s employees (acquiree’s awards), then all or a portion of the amount of the acquirer’s replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market-based measure of the replacement awards compared with the market-based measure of the acquiree’s awards and the extent to which the replacement awards relate to pre-combination service. (ii) Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. (iii) Entities acquired under common control Entities acquired under common control or transactions accounted for in a manner similar to a pooling-of-interests (for example, a reorganization of entities under common control) are accounted under the “book value” accounting, where the Company recognizes the assets acquired and liabilities assumed using the book values of the transferor. When the consolidated financial statements are issued for a period that includes the date the common control transaction occurred, the Company’s consolidated financial statements of all prior periods are retrospectively revised to the earliest date presented. (iv) Non-controlling interests Non-controlling interests are measured initially at the proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. |
Foreign currency transactions | (b) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated to the functional currency at the exchange rate when the fair value was determined. Foreign currency differences are generally recognized in profit or loss. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into RMB at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into RMB at the exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income and accumulated in the translation reserve. |
Financial instruments | (c) Financial instruments The Group classifies non-derivative financial assets into the following categories: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets. The Group classifies non-derivative financial liabilities into the following categories: financial liabilities at fair value through profit or loss and other financial liabilities. (i) Non-derivative financial assets and financial liabilities – Recognition and de-recognition The Group initially recognizes loans and receivables and debt securities issued on the date when they are originated. All other financial assets and financial liabilities are initially recognized on the trade date when the entity becomes a party to the contractual provisions of the instrument. The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in such derecognized financial assets that is created or retained by the Group is recognized as a separate asset or liability. The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to offset the amounts and intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. (ii) Non-derivative financial assets – Measurement A financial asset is classified as at fair value through profit or loss if it is classified as held-for-trading or is designated as such on initial recognition. Directly attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value and changes therein, including any interest or dividend income, are recognized in profit or loss. Held-to-maturity financial assets are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method. Loans and receivables are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method. Available-for-sale financial assets are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on debt instruments, are recognized in other comprehensive income and accumulated in the fair value reserve. When these assets are derecognized, the gain or loss accumulated in equity is reclassified to profit or loss. (iii) Non-derivative financial liabilities – Measurement A financial liability is classified as at fair value through profit or loss if it is classified as held-for-trading or is designated as such on initial recognition. Directly attributable transaction costs are recognized in profit or loss as incurred. Financial liabilities at fair value through profit or loss are measured at fair value and changes therein, including any interest expense, are recognized in profit or loss. Other non-derivative financial liabilities are initially measured at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using the effective interest method. |
Property and equipment | (d) Property and equipment (i) Recognition and measurement Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses (Note 3(f)). Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and any other costs directly attributable to bringing the asset to a working condition for its intended use. Construction in progress represents property under construction and equipment pending installation, and is stated at cost less impairment losses (Note 3(f)). Capitalization of these costs ceases and the construction in progress is transferred to property and equipment when the asset is substantially ready for its intended use. No depreciation is provided in respect of construction in progress. Gains or losses arising from the retirement or disposal of an item of property and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of retirement or disposal. (ii) Subsequent costs The cost of replacing a component of an item of property and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced component is derecognized. The costs of the day-to-day servicing of property, and equipment are recognized in profit or loss as incurred. (iii) Depreciation Items of property and equipment are depreciated from the date that they are available for use or, in respect of self-constructed assets, from the date that the asset is completed and ready for use. Depreciation is calculated to write off the cost of items of property and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or their useful lives. Motor vehicles 5~10 years Furniture, fixtures and other equipment 5~10 years Leasehold improvements Shorter of the remaining lease terms Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. |
Intangible assets | (e) Intangible assets (i) Goodwill Goodwill is presented with intangible assets and is measured at cost less accumulated impairment losses (Note 3(f)). (ii) Trademark Trademark is not amortized when its useful life is assessed to be indefinite, which is reviewed annually to determine whether events and circumstances continue to support the indefinite useful life assessment. The change in the useful life assessment from indefinite to finite is accounted for prospectively from the date of change and in accordance with the policy for amortization of intangible assets with finite lives. (iii) Other intangible assets Other intangible assets that have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses (Note 3(f)). Other intangible assets are student relationships that arose from the acquisition of Tianma Experimental. (iv) Amortization Amortization of intangible assets with finite useful lives is recognized in profit or loss on a straight-line method to reflect the expected departure rate over the remaining useful life of the asset, other than goodwill, from the date that they are available for use. The estimated useful lives of student relationships are 1~15 years. Amortization methods and useful lives are reviewed at each reporting date and adjusted if appropriate. |
Impairment | (f) Impairment (i) Non-derivative financial assets A financial asset not classified as at fair value through profit or loss, including an interest in an equity-accounted investee, is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset, and that loss event had an impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired includes: • default or delinquency by a debtor; • restructuring of an amount due to the Group on terms that the Group would not consider otherwise; • indications that a debtor or issuer will enter bankruptcy; • adverse changes in the payment status of borrowers or issuers; • the disappearance of an active market for a security because of financial difficulties; or • observable data indicating that there is a measurable decrease in the expected cash flows from a group of financial assets. The Group considers evidence of impairment for financial assets measured at amortized cost (other receivables) at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. In assessing collective impairment the Group uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account against receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. (ii) Non-financial assets The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and indefinite-lived intangible assets are tested annually for impairment. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (“CGU”s). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or CGU is the greater of its value in use and fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. An impairment loss in respect of goodwill is not reversed. In respect of other non-financial assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. |
Cash and cash equivalents | (g) Cash and cash equivalents Cash and cash equivalents in the consolidated statements of financial position comprise cash at banks and on hand and cash equivalents with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. |
Term Deposit | (h) Term Deposit Term deposits comprise highly liquid investments with original maturities of greater than three months, but less than twelve months. |
Employee benefits | (i) Employee benefits (i) Defined contribution plan Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the period during which services are rendered by employees. Pursuant to the relevant labor rules and regulations in the PRC, the Group participates in defined contribution retirement schemes (the “Schemes”) organized by the relevant local government authorities for its eligible employees whereby the Group is required to make contributions to the Schemes at 34.4% to 41.4% of the deemed salary rate announced annually by the local government authorities. The Group has no other material obligation for payment of pension benefits associated with those schemes beyond the annual contributions described above. (ii) Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A provision is recognized for the amount expected to be paid under short-term cash bonus or other short-term benefits if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. |
Provisions and contingent liabilities | (j) Provisions and contingent liabilities A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. |
Revenue | (k) Revenue The Group recognize revenue when persuasive evidence of an arrangement exists, delivery of the goods or services has occurred, the sales price reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The primary sources of the Group’s revenues are as follows: Educational programs and services The Group’s revenue is principally derived from the rendering of boarding school education services to students. The Group offers basic educational and international programs at the primary school, middle school and high school grades. The basic educational program provides curricula and coursework mandated by the PRC government. The international program provides students the opportunity to earn both their PRC school diplomas and to prepare for admissions to overseas educational institutions. Tuition fees are received at the beginning of each school year. Each school year is comprised of two semesters. The first semester starts in September and ends in January. The second semester starts the following month in February and ends in June. Tuition fees contain multiple components consisting of the delivery of education, after-school enrichment program, accommodations, meals, and transportation services (collectively, “education services”) and delivery of educational books and related materials (“education materials”). The Group allocates the total tuition fees into educational services and educational materials based on their relative fair value. The components within education services were not further separated since revenue recognition for the components occurs at the same time and the components belong to the same category of revenue, which is service revenue. Revenue attributable to education services is recognized on a straight-line basis over the school year since the services are performed by an indeterminate number of acts over a specified period of time and there is no evidence that some other method better represents the stage of completion. Revenue attributable to educational materials is recognized upon the delivery of the products to the students, which is when the risks and rewards have been transferred to the students. Tuition fees not yet earned are recorded as deferred revenue. For the periods presented, revenue recognized for the delivery of educational materials was insignificant and occurred during the same year that revenue for the delivery of education services was recognized. Management services The Group also provides education and management services to schools, including but not limited to logistic, management and consulting services. Revenue is recognized upon the delivery of service. Others Others mainly include revenue derived from educational training services, overseas study consulting services and hotel management. Educational training services. The Group provides various extracurricular courses to arouse students’ interest and broaden their outlook. Tuition is generally collected in advance and is initially recorded as deferred revenue. Revenue derived from providing educational training services is recognized on a straight-line basis over the period of the courses. Overseas study consulting services. Hotel management. |
Government grants | (l) Government grants Government grants are recognized in the statements of profit or loss and other comprehensive income when the grants are unconditional and become receivable. Grants that compensate the Group for expenses incurred are recognized as income in profit or loss on a systematic basis in the same periods in which the expenses are incurred. |
Lease payments | (m) Lease payments Payments made under operating lease are recognized in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expenses over the term of the lease. |
Finance income and finance costs | (n) Finance income and finance costs Finance income comprises interest income. Interest income is recognized on accrual basis during the interest-bearing deposits period. Finance costs comprise interest expense on borrowings. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss. Foreign currency gains and losses are reported on a net basis as either finance income or finance expense depending on whether foreign currency changes are in a net gain or net loss position. |
Income tax expense | (o) Income tax expense Income tax expense comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are recognized in profit or loss except to the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arise from unused tax losses and unused tax credits. Deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill; the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that, in the case of taxable differences, the Group controls the timing of the reversal and it is probable they will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future. The amount of deferred tax recognized is measured based on the expected manner of realization or settlement of the carrying amount of the assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. Current tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset. Current tax assets are offset against current tax liabilities, and deferred tax assets are offset against deferred tax liabilities, if there is a legal enforceable right to offset current tax assets and current tax liabilities, and in the case of current tax assets and liabilities, the Group intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously, or in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same tax authority on the same taxable entity. Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. The carrying amount of a deferred tax asset is reviewed at each reporting date and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Group to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such determination is made. |
Earnings per share | (p) Earnings per share Basic earnings per share (“basic EPS”) is calculated by dividing the profit by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share (“diluted EPS”) is similar to basic earnings per share but presents the dilutive effect on a per share basis of potential ordinary shares (e.g. warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. |
Related parties | (q) Related parties For the purposes of these consolidated financial statements, a person or entity is considered to be related to the Group if: (a) A person, or a close member of that person’s family, is related to the Group if that person: (i) has control or joint control over the Group. (ii) has significant influence over the Group; or of a parent of the Group. (iii) is a member of the key management personnel of the Group or of a parent of the Group. (b) An entity is related to the Group if any of the following conditions applies: (i) the entity and the Group are members of the same Group (which means that each parent, subsidiary and fellow subsidiary is related to the other). (ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of the Group of which the other entity is a member). (iii) both entities are joint ventures of the same third party. (iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group. (vi) the entity is controlled or jointly controlled by a person identified in (a). (vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity. |
Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended June 30, 2018 | (r) Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended June 30, 2018 Up to the date of issue of these consolidated financial statements, the IASB has issued a number of amendments, new standards and interpretations which are not yet effective for the year ended June 30, 2018 and which have not been adopted in these consolidated financial statements. These include the following which may be relevant to the Group. Effective for accounting periods beginning on or after IFRS 9, Financial Instruments January 1, 2018 IFRS 15, Revenue for Contracts with Customers January 1, 2018 IFRS 16, Leases January 1, 2019 Amendments to IFRS 9, Prepayment Features with Negative Compensation January 1, 2019 Amendments to IFRS 3, Business combinations January 1, 2019 Amendments to IFRS 11, Joint Arrangements January 1, 2019 Amendments to IAS 12, Income Taxes January 1, 2019 Amendments to IAS 19, Employee Benefits January 1, 2019 Amendments to IAS 28, Investments in Associates and Joint Ventures January 1, 2019 IFRS 9 “Financial Instruments” addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules of hedge accounting and a new impairment model for financial assets, and should be applied in an entity’s IFRS financial statements for annual reporting periods beginning on or after January 1, 2018. Earlier application is permitted. The Group will adopt IFRS 9 in the financial reporting period commencing July 1, 2018. The Group has completed the review of IFRS 9 and does not expect the new guidance to have a significant impact on the reclassification and measurement of its financial assets. In May 2014, IASB issue IFRS15-“Revenue from Contracts with Customers”. The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the principle, a company should follow five steps: 1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The standard should be applied in an entity’s IFRS financial statements for annual reporting periods beginning on or after 1 January 2018. Earlier application is permitted. The Group will adopt IFRS15 in the financial reporting period commencing July 1, 2018 and elect to apply the "modified retrospective" transition approach to implementation. The Group has completed review of the requirements of IFRS15 against the existing accounting policy and concluded that the adoption of IFRS 15 will not have significant impact on the timing of the Group’s revenue recognition nor on the Group’s equity. For those new standards with effective date beginning on/after January , , the Group is in the process of making an assessment of what the impact of these amendments, new standards and interpretations is expected to be in the period of initial application. |
Reclassification | (s) Reclassification The comparative figures have been reclassified to conform to current year presentation. |
Reporting entity and organiza_2
Reporting entity and organization (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of reporting entity and organization [Abstract] | |
Disclosure of entities subsidiaries and affiliates [Text Block] | As of June 30, 2018, the Company’s subsidiaries and consolidated affiliated entities are as follows: Subsidiary Place and year of establishment Legal Principle activities Hailiang Education (HK) Limited (“Hailiang HK”) Hong Kong, China, 2011 100 % Investment holding Hailiang Consulting Zhejiang, China, 2011 100 % Investment holding and school management Ningbo Hailiang Zhejiang, China, 2017 100 % School logistics management Ningbo Haoliang Zhejiang, China, 2017 100 % School management Zhuji Hotel Zhejiang, China, 2017 100 % Hotel management Hailiang Sports Zhejiang, China, 2018 100 % Sports activities consulting Haibo Education Jiangxi, China, 2018 56 % Educational training Haibo Logistics Jiangxi, China, 2018 56 % School management Consolidated affiliated entities Place and year of establishment Legal Principle activities Hailiang Management (previously named “Zhejiang Hailiang Education Investment Group Co., Ltd.”) Zhejiang, China, 2012 N/A* Investment holding Hailiang Mingxin Zhejiang, China, 2017 N/A* Educational consulting, after-school enrichment program Hangzhou Hailiang Zhejiang, China, 2018 N/A* School management Zhuji Youer Zhejiang, China, 2017 N/A* Technology Zhuji Mingrui Zhejiang, China, 2017 N/A* Consulting Zhuji Shangzhuo Zhejiang, China, 2017 N/A* Consulting Zhuji Hongda Zhejiang, China, 2017 N/A* Trading Foreign Language Zhejiang, China, 1995 N/A* K-12 educational services Experimental High Zhejiang, China, 2002 N/A* K-12 educational services Tianma Experimental Zhejiang, China, 1995 N/A* K-12 educational services Hailiang Primary School Zhejiang, China, 2016 N/A* K-12 educational services Hailiang Junior Middle School Zhejiang, China, 2016 N/A* K-12 educational services Hailiang Senior Middle School Zhejiang, China, 2016 N/A* K-12 educational services Hailiang High School of Art (previously named “Hailiang Art Middle School”) Zhejiang, China, 2017 N/A* K-12 educational services * These entities are controlled by the Company pursuant to the contractual arrangements disclosed below. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Basis of preparation [Abstract] | |
Disclosure of Information About Financial Statements and Amounts of Affiliated Entities Explanatory [Text Block] | The following financial statement balances and amounts of the affiliated entities were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions. 2017 RMB 2018 RMB Total current assets 376,729 848,028 Total non-current assets 805,910 710,464 Total assets 1,182,639 1,558,492 Total current liabilities 197,473 396,238 Total liabilities 197,473 396,238 2016 RMB 2017 RMB 2018 RMB Net revenue 653,753 853,247 1,110,470 Profit before tax 112,571 165,300 221,057 |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of summary of significant accounting policies [Abstract] | |
Disclosure of useful lives of property and equipment explanatory [Text Block] | The estimated useful lives for the current and comparative years of significant property and equipment are as follows: Motor vehicles 5~10 years Furniture, fixtures and other equipment 5~10 years Leasehold improvements Shorter of the remaining lease terms |
Other income, net (Tables)
Other income, net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of employee benefits [Abstract] | |
Disclosure of detailed information about other income [Text Block] | 2016 RMB 2017 RMB 2018 RMB Unconditional government grants 1,434 6,253 5,832 Others 322 72 (2,143 ) 1,756 6,325 3,689 |
Employee benefit expenses (Tabl
Employee benefit expenses (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of employee benefits [Abstract] | |
Disclosure of detailed information of employee benefit expenses [Text Block] | 2016 RMB 2017 RMB 2018 RMB Wages and salaries 230,516 280,786 388,238 Contributions to defined contribution plans 27,038 44,884 52,898 257,554 325,670 441,136 |
Profit before tax (Tables)
Profit before tax (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of profit loss before tax [Abstract] | |
Disclosure of finance income (cost) [text block] | (i) Net finance income 2016 RMB 2017 RMB 2018 RMB Interest income 4,906 6,709 11,715 Net foreign exchange gain/(loss) 1,049 282 (324 ) Other expenses (203 ) (99 ) — Net finance income 5,752 6,892 11,391 |
Disclosure of expenses by nature [text block] | (ii) Expenses by nature 2016 RMB 2017 RMB 2018 RMB Employee benefit expenses (Note 5) 257,554 325,670 441,136 Students related cost 100,633 116,273 133,308 Transportation 24,729 31,823 36,110 Marketing and promotion 15,806 21,240 24,019 Depreciation 65,038 110,485 113,128 Utilities 19,652 23,286 26,100 Amortization of intangible assets 948 662 446 Operating lease charges 25,592 30,030 33,290 Share based payment 1,459 — — Cost related to overseas consulting business — — 14,263 Others 40,439 39,300 70,787 Total cost of revenue, selling expenses and administrative expenses 551,850 698,769 892,587 |
Disclosure of depreciation and amortisation expense [text block] | (iii) Depreciation and amortization 2016 RMB 2017 RMB 2018 RMB Included in cost of revenue Depreciation 64,642 109,755 112,039 Included in G&A expenses Depreciation 396 730 1,015 Included in selling expenses Amortization 948 662 446 Depreciation — — 74 |
Income tax expenses (Tables)
Income tax expenses (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of income tax [Abstract] | |
Disclosure of detailed information about reconciliation of accounting profit multiplied by applicable tax rates [Text Block] | Reconciliation between the provision for income tax computed by applying the PRC EIT rates of 25% in fiscal year 2016, 2017 and 2018 to income before income taxes and the actual provision for income tax was as follow: 2016 2017 2018 RMB RMB RMB Net income before provision for income tax 99,432 167,743 297,190 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory tax rate 24,858 41,936 74,298 Effect of expenses that are not deductible in determining taxable profit — — 373 Effect of incomes that are not taxable in determining taxable profit — — (956 ) Unrecognized tax losses 133 2 70 Utilization of tax losses previously not recognized — (579 ) (46 ) Effect of income tax exemptions (24,991 ) (41,359 ) (7,451 ) Income tax expense recognized in profit or loss — — 66,288 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Disclosure of earnings per share [text block] | (i) Profit attributable to ordinary shareholders 2016 RMB 2017 RMB 2018 RMB Profit attributable to ordinary shareholders (basic and diluted) 99,432 167,743 222,588 (ii) Weighted-average number of ordinary shares 2016 2017 2018 Weighted average number of ordinary shares for basic EPS 410,439,562 411,208,000 411,878,478 Effects of dilution from Warrants 12,144 — 638,292 Weighted average number of ordinary shares adjusted for the effect of dilution 410,451,706 411,208,000 412,516,770 (iii) Earnings per share 2016 2017 2018 Basic and diluted earnings per share 0.24 0.41 0.54 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Disclosure of detailed information about property, plant and equipment [text block] | Motor vehicles RMB Furniture, fixtures and other equipment RMB Leasehold improvement RMB Construction in progress RMB Total RMB Cost Balance at June 30, 2015 19,108 32,318 182,884 97,184 331,494 Additions 828 75,039 — 558,760 634,627 Transferred from construction in progress — 59,609 524,857 (584,466 ) — Disposals (1,885 ) (699 ) (78,494 ) — (81,078 ) Balance at June 30, 2016 18,051 166,267 629,247 71,478 885,043 Additions 464 17,626 10,266 62,396 90,752 Transferred from construction in progress — 60,383 64,613 (124,996 ) — Disposals — (87 ) — — (87 ) Balance at June 30, 2017 18,515 244,189 704,126 8,878 975,708 Additions 4,454 22,331 21,415 48,209 96,409 Transferred from construction in progress — 5,098 45,446 (50,544 ) — Disposals (1,566 ) (8,584 ) (23,446 ) (1,013 ) (34,609 ) Balance at June 30, 2018 21,403 263,034 747,541 5,530 1,037,508 Accumulated depreciation Balance at June 30, 2015 (5,537 ) (21,152 ) (123,128 ) — (149,817 ) Depreciation for the year (3,714 ) (19,799 ) (41,525 ) — (65,038 ) Disposals 1,470 509 68,208 — 70,187 Balance at June 30, 2016 (7,781 ) (40,442 ) (96,445 ) — (144,668 ) Depreciation for the year (2,098 ) (41,746 ) (66,641 ) — (110,485 ) Disposals — 64 — — 64 Balance at June 30, 2017 (9,879 ) (82,124 ) (163,086 ) — (255,089 ) Depreciation for the year (4,476 ) (33,414 ) (75,238 ) — (113,128 ) Disposals 338 4,340 5,112 — 9,790 Balance at June 30, 2018 (14,017 ) (111,198 ) (233,212 ) — (358,427 ) Net book value At June 30, 2017 8,636 162,065 541,040 8,878 720,619 At June 30, 2018 7,386 151,836 514,329 5,530 679,081 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Intangible assets and goodwill [abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill [text block] | Goodwill RMB Student relationship RMB Trademark RMB Total RMB Cost Balance at July 1, 2015, June 30, 2016, 2017 62,046 45,037 16,540 123,623 Disposals of component (406 ) — — (406 ) Balance at June 30, 2018 61,640 45,037 16,540 123,217 Accumulated Amortization Balance at June 30, 2015 — (42,414 ) — (42,414 ) Amortization for the year — (948 ) — (948 ) Balance at June 30, 2016 — (43,362 ) — (43,362 ) Amortization for the year — (662 ) — (662 ) Balance at June 30, 2017 — (44,024 ) — (44,024 ) Amortization for the year — (446 ) — (446 ) Balance at June 30, 2018 — (44,470 ) — (44,470 ) Net book value At June 30, 2017 62,046 1,013 16,540 79,599 At June 30, 2018 61,640 567 16,540 78,747 |
Disclosure of Information about Aggregated Carrying Amounts of Goodwill and Trademark [text block] | For the purpose of impairment testing, the carrying amounts of goodwill and trademark are allocated to Tianma Experimental, which is the lowest level for which the assets are monitored for internal management purpose. The aggregated carrying amounts of goodwill and trademark are as follows: 2017 RMB 2018 RMB Goodwill 62,046 61,640 Trademark 16,540 16,540 Total 78,586 78,180 |
Disclosure of Information about Key Assumptions used in the Estimation of the Recoverable Amount of CGU [text block] | The key assumptions used in the estimation of the recoverable amount are set out below. In percent 2016 2017 2018 Discount rate 24 % 24 % 15 % Terminal value growth rate 3 % 3 % 3 % |
Prepayments to third party su_2
Prepayments to third party suppliers (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Current prepayments [abstract] | |
Detailed of prepayments to third party suppliers [Text Block] | 2017 RMB 2018 RMB Prepayments to third party suppliers 5,692 92 |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other current assets [Abstract] | |
Disclosure Of Other receivables due from third parties [Text Block] | 2017 RMB 2018 RMB Other receivables due from third parties 1,526 15,182 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Disclosure Of detailed information about Cash and cash equivalents [Text Block] | 2017 RMB 2018 RMB Cash on hand 21 30 Cash at bank 16,065 71,857 Cash held at a related party finance entity 61,715 740,733 Total 77,801 812,620 |
Share-based payment (Tables)
Share-based payment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Share based payment [Abstract] | |
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period [text block] | The fair value of these warrants was estimated on the basis of the Black-Scholes option pricing model with the following assumptions: Issuance Date Expected volatility 50.96 % Risk-free interest rate 0.96 % Expected dividend — Expected life of the warrant 3 years Fair value of conversion share US$7.0 The fair value of these restricted shares was estimated on the basis of the Black-Scholes option pricing model with the following assumptions: Issuance Date Expected volatility 55.56 % Risk-free interest rate 0.293 % Expected dividend — Expected life of the restricted shares 0.5 year Hypothetical fair value of conversion share US$1.0 |
Capital and reserve (Tables)
Capital and reserve (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Capital and reserve [Abstract] | |
Disclosure of detailed information about share capital and share premium [Text Block] | 2016 2017 2018 At June 30 par value USD0.0001 -authorized 1,000,000,000 1,000,000,000 1,000,000,000 -issued and outstanding 411,208,000 411,208,000 412,450,256 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Non controlling Interest [Abstract] | |
Detailed information of changes in noncontrolling interests [Text Block] | The following table summarizes the changes in non-controlling interests from June 30, 2017 through June 30, 2018 . Haibo Education Haibo Logistic Total RMB RMB RMB Balance at June 30, 2017 — — — Transfer of equity interests to non-controlling interest shareholders (19(a)(x)) 2,640 2,200 4,840 Net profit attributed to non-controlling interest shareholders 6,750 1,564 8,314 Balance at June 30, 2018 9,390 3,764 13,154 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Trade and other payables [abstract] | |
Disclosure of detailed information about trade and other payables [Text Block] | 2017 RMB 2018 RMB Trade payable 22,662 22,309 Accrued payroll 50,013 68,351 Amount due to third parties 41,188 50,844 Trade and other payables 113,863 141,504 Amount due to related parties 124,841 138,215 Total 238,704 279,719 |
Financial risk management and_2
Financial risk management and fair values (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Financial risk management and fair values [Abstract] | |
Disclosure of Non derivative financial instruments [Text Block] | The following are the contractual maturities of financial liabilities, including estimated interest payments: June 30, 2017 Non-derivative financial instruments Carrying amount Contractual cash flows 1 year or less RMB RMB RMB Trade and other payables 238,704 238,704 238,704 June 30, 2018 Non-derivative financial instruments Carrying amount Contractual cash flows 1 year or less RMB RMB RMB Trade and other payables 279,719 279,719 279,719 |
Disclosure of detailed information about sensitivity due to currency exchange [Text Block] | The following table demonstrates the sensitivity at the end of the reporting period to a reasonably possible change in the exchange rate of RMB against USD, with all variables held constant, of the Group’s profit before tax and the Group’s equity. Change in USD rate Effect on profit before tax Effect on equity June 30, 2018 +5 % — 5,393 -5 % — (5,393 ) June 30, 2017 +5 % — 6,046 -5 % — (6,046 ) |
Related parties transactions (T
Related parties transactions (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Related party [Abstract] | |
Disclosure of transactions between related parties [text block] | (a) The significant related party transactions are summarized as follows: 2016 2017 2018 Note RMB RMB RMB Loans made from a related party (i) — 99,603 7,609 Loans made to a related party (i) — 98,229 — Interest income from deposits placed with a related party finance entity (ii) 2,683 5,847 11,464 Net deposits/(withdrawals) of cash at a related party finance entity (ii) 81,716 (109,998 ) 679,018 Term deposits placed with a related party finance entity (ii) 1,212,430 1,953,600 204,000 Maturity of term deposits placed with a related party finance entity (ii) 1,272,430 1,552,600 401,000 Rental expenses (iii) 25,433 30,030 32,486 Expenses paid by a related party on behalf of the Group (iv) 3,356 3,836 4,612 Repayment of expenses paid by a related party on behalf of the Group (iv) 1,782 4,536 4,124 Expenses paid by the Group on behalf of a related party (iv) 11,567 — 9,401 Repayment of expenses paid by the Group on behalf of a related party (iv) — — 8,794 Payments of leasehold improvement to a related party (iv)(v) 22,661 29,406 24,280 Purchase of healthy food from a related party (vi) 48,517 48,298 38,323 Product sale revenue and service fee from a related party (vii) 1,962 3,766 17,247 Service fee paid to a related party (viii) — — 6,884 Waive of liability to a related party (iii) — 10,000 — Gains from disposal of affiliated entities to a related party (ix) — — 5,349 Acquisition payment to a related party (x) — — 6,160 (b) The significant related party balances are summarized as follows: 2017 2018 Note RMB RMB Amount due from a related party (i)(ii)(iii)(iv) 112,773 95,128 Cash held at a related party finance entity (ii) 61,715 740,733 Term deposits placed with a related party finance entity (ii) 401,000 204,000 Amount due to related parties (i)(iii)(iv)(v)(vi) 124,841 138,215 The Company’s majority shareholder, Mr. Feng owns or controls other non-educational services businesses (“Related Party Companies”) that from time to time require short-term financing to support their business operations and working capital needs. After considering the cash on hand and forecasted cash flows to fund its operations, the Group issued financing to Related Party Companies during the periods presented. (i) On October 31, 2016, the Company provided a one-year-period loan to Hong Kong Leonit Limited (“Leonit”) amounting to USD14,500, approximately RMB98,229 (“USD Loan”). On the same date, Hailiang Consulting made a one-year-period loan from Hailiang Group Co., Ltd amounting to RMB99,603 with interest free (“RMB Loan”). On October 9, 2017, the Company agreed to extend the loan with Leonit, pursuant to which the USD Loan’s due date was extended to due October 30, 2018. Similarly, Hailiang Group and Hailiang Consulting agreed to a loan extension pursuant to which the RMB Loan was due on October 30, 2018. Through an understanding among the aforementioned parties, the USD Loans are “secured” by the RMB Loan. It is the understanding among the parties that when the USD Loan is repaid, the RMB Loan will similarly be repaid. On December 5, 2017, the Company made a one-year-period loan from Leonit amounting to USD1,150, approximately RMB7,609 The loan of RMB98,229 made to Leonit recognized in “Amount due from related parties”, and the loan of RMB99,603 made from Hailiang Group was recognized in “Amount due to related parties” as of June 30, 2018. (ii) As at June 30, 2017 and 2018, the Group has cash in a related party finance entity of RMB61,715 and RMB740,733, respectively. During the years ended June 30, 2016 and 2018, net amount of RMB81,716 and RMB679,018 were placed with Hailiang Finance, respectively. During the year ended June 30, 2017, net amount of RMB109,998 were withdrawn from Hailiang Finance. The cash in a related party finance entity are held for the purpose of meeting short-term cash commitments, such as to pay for the Group’s operating expenses at any time. As at June 30, 2017 and 2018, the Group has term deposits with maturities ranging from three months to less than one year amounting to RMB401,000 and RMB204,000 that are placed at Hailiang Finance, respectively. During the years ended June 30, 2016, 2017 and 2018, term deposits of RMB1,212,430, RMB1,953,600 and RMB204,000 was placed with Hailiang Finance, of which RMB1,272,430, RMB1,552,600 and RMB401,000 matured, respectively. The term deposits are held for investment purpose and can be withdrawn prior to their maturity without incurring significant penalties. Such amounts have been presented as investing activities in the statements of cash flows. The interest income from the deposits during the years ended June 30, 2016, 2017 and 2018 amounted to RMB2,683, RMB5,847 and RMB11,464, respectively. (iii) Each of the schools leases the school buildings and the related facilities from Hailiang Investment, a related party controlled by Mr. Feng. Haibo Education leases the office space from Nanchang Hongtou Property Management Co., Ltd, a related party owned by the Group’s non-controlling shareholder. The leasing term and rental amount of each of the three follows: 2016 2017 2018 Leasing Period RMB RMB RMB Foreign Language July 1, 2009 ~ September 1, 2015 166 — — Experimental High July 1, 2017 ~ June 30,2037 7,000 7,350 7,718 Tianma Experimental July 1, 2015 ~ June 30,2035 1,600 1,680 1,764 Hailiang Education Park September 1, 2017 ~ August 31, 2037 16,667 21,000 21,483 Haibo Education — — 1,521 Total 25,433 30,030 32,486 During the years ended June 30, 2016, 2017 and 2018, the Group paid rental fees of RMB25,783, RMB27,300 and RMB15,956, respectively. Hailiang Investment waived the 2013 and 2014 rental fees with an amount of RMB10,000 in the year ended June 30, 2017. Amount due to Hailiang Investment was RMB739 as of June 30, 2018, which was included in the “Amount due to related parties”. The prepaid rental fee to Hailiang Investment as of June 30, 2017 was RMB14,270 which was included in the “Amount due from related parties”. (iv) During the years ended June 30, 2016, 2017 and 2018, Hailiang Group paid professional service fees and other expenses of RMB3,356, RMB3,836 and RMB4,612 on behalf of the Group, respectively. Such amount is due and payable on demand, and the Group repaid RMB1,782, RMB4,536 and RMB4,124 to Hailiang Group during the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2016, the Group paid RMB11,567 on behalf of Hailiang Hospital for leasehold improvement, the balance has been fully returned to the Group on September 21, 2016. During the year ended June 30, 2018, the Group paid expenses of RMB4,259, RMB2,764, RMB1,016 and RMB1,181 on behalf of Preschool, Hailiang Kindergarten, Hailiang Investment, Hailiang Hospital, respectively. Such amounts are receivable on demand, and the related parties aforementioned repaid RMB4,422, RMB3,135, RMB1,014 and RMB163 during the year ended June 30, 2018, respectively. The unpaid expenses due to related parties and the uncollected amount due from related parties was included in “Amount due to related parties” and “Amount due from related parties” as of June 30, 2016, 2017 and 2018, respectively. (v) The Group entered into a series of leasehold improvement contracts with Heng Zhong Da for the leasehold improvement of classroom buildings, dining halls, student dormitories and amount of the contracts was RMB19,680, RMB34,626 and RMB23,174 for the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2018, Heng Zhong Da has provided service and improvement of RMB352,287 (RMB285,958, RMB37,231 and RMB29,098 in fiscal year 2016, 2017 and 2018), which was recorded in “Property and Equipment”. The Group has paid RMB22,661, RMB29,406 and RMB24,280 to Heng Zhong Da during the years ended June 30, 2016, 2017 and 2018, respectively. The accumulate payment included the payment of RMB11,567 on behalf of Hailiang RMB19,508 as of June 30, 2018 was . (vi) The Group purchased healthy food products from Ming Kang Hui Health Food Group Co., Ltd. and Ming Kang Hui Ecological Agriculture Group Co., Ltd. (collectively referred as “Ming Kang Hui”), two companies owned by Hailiang Group, amounting to RMB48,517, RMB48,298 and RMB38,323 during the years ended June 30, 2016, 2017 and 2018, respectively. The amount due to Ming Kang Hui was RMB30,005, RMB6,876 and RMB5,386 as of June 30, 2016, 2017 and 2018, respectively. (vii) The products sold, services provided to related parties are as follow: 2016 2017 2018 RMB RMB RMB Management Service Fee (1) — — 12,275 Service fee from Ming Kang Hui Supermarket (2) 1,962 3,766 4,556 Hotel Service Fee — — 268 Product Sale — — 148 Total 1,962 3,766 17,247 (1) Pursuant to the strategic cooperation agreement signed with Hailiang Group and Hailiang Investment, the Group provided management services to schools acquired by Hailiang Investment, including Hubei Xiantao of RMB12,275 was charged from the abovementioned schools during the year ended June 30, 2018. (2) The Group charged service fee from supermarkets, which are operated by Ming Kang Hui in campuses, amounting to RMB1,962, RMB3,766 and RMB4,556 during the years ended June 30, 2016, 2017 and 2018, respectively. (viii) The Group paid information service fee to Hangzhou Mingxin Information Technology Co., amounting to RMB6,884 during the year ended June 30, 2018. (ix) The gains were recognized from disposal of Hailiang Kindergarten, Tianma Kindergarten and Chuzhou School (see Note 6 (iv) for additional details), amounting to RMB3,285, RMB1,683 the year ended June 30, 2018, respectively. (x) In August 2017, Haibo Education and Haibo Logistics were incorporated by Xinyu Baishu, an entity ultimately controlled by Mr. Feng. The contributed capital from Xinyu Baishu was RMB6,000 and RMB5,000, respectively. In January 2018, Xinyu Baishu transferred 56% equity interests in Haibo Education and Haibo Logistics to Ningbo Haoliang with considerations of RMB3,360 and RMB2,800, respectively. The considerations were equivalent to the cost of 56% of the contributed capital since Haibo Education and Haibo Logistics had no substantive operation as of the acquisition date. Haibo Education and Haibo Logistics were under common control with the Company both immediately before and after the acquisition, and the Company recognized the assets and liabilities of Haibo Education and Haibo Logistics at historical cost. In January 2018, Xinyu Baishu also transferred the remaining 44% equity interest in Haibo Education and Haibo Logistics to Nanchang Baishu, a related party of the Company. The 44% equity interests owned by Nanchang Baishu were reocorded as non-controlling interests (see note 16). |
Disclosure of detailed information about key management personnel compensation [Text Block] | (c) Transactions with key management personnel Remuneration of the directors and key management personnel of the Group for the years ended June 30, 2016, 2017 and 2018 are as follows: 2016 2017 2018 RMB RMB RMB Compensation 6,383 7,614 8,162 |
Disclosure of detailed information about leasing term and rental amount [Text Block] | (iii) Each of the schools leases the school buildings and the related facilities from Hailiang Investment, a related party controlled by Mr. Feng. Haibo Education leases the office space from Nanchang Hongtou Property Management Co., Ltd, a related party owned by the Group’s non-controlling shareholder. The leasing term and rental amount of each of the three follows: 2016 2017 2018 Leasing Period RMB RMB RMB Foreign Language July 1, 2009 ~ September 1, 2015 166 — — Experimental High July 1, 2017 ~ June 30,2037 7,000 7,350 7,718 Tianma Experimental July 1, 2015 ~ June 30,2035 1,600 1,680 1,764 Hailiang Education Park September 1, 2017 ~ August 31, 2037 16,667 21,000 21,483 Haibo Education — — 1,521 Total 25,433 30,030 32,486 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Operating Segment information [Abstract] | |
Disclosure of entity's operating segments [text block] | The revenue and operating resu lts by segments were as follows: For the year ended June 30, 2016 K-12 educational services Management services Others Unallocated* Consolidated RMB RMB RMB RMB RMB Segment revenue 654,060 — — — 654,060 Consolidated revenue 654,060 — — — 654,060 Segment profit/(loss) before tax 112,944 — — (13,512 ) 99,432 Consolidated profit (loss) before tax 112,944 — — (13,512 ) 99,432 Interest income 4,900 6 4,906 Depreciation and amortization 65,986 — — — 65,986 For the year ended June 30, 2017 K-12 educational services Management services Others Unallocated* Consolidated RMB RMB RMB RMB RMB Segment revenue 853,295 — — — 853,295 Consolidated revenue 853,295 — — — 853,295 Segment profit before tax 165,353 — — 2,390 167,743 Consolidated profit before tax 165,353 — — 2,390 167,743 Interest income 5,980 729 6,709 Depreciation and amortization 111,147 — — — 111,147 For the year ended June 30, 2018 K-12 Management Others Unallocated* Consolidated RMB RMB RMB RMB RMB Segment revenue 1,093,933 117,057 71,332 — 1,282,322 Elimination of inter-segment transactions — (98,036 ) (14,938 ) — (112,974 ) Consolidated revenue 1,093,933 19,021 56,394 — 1,169,348 Segment profit/(loss) before tax 209,407 67,180 29,977 (9,374 ) 297,190 Elimination of inter-segment transactions 112,974 (98,036 ) (14,938 ) — — Consolidated profit/(loss) before tax 322,381 (30,856 ) 15,039 (9,374 ) 297,190 Interest income 7,059 24 270 4,362 11,715 Depreciation and amortization 104,225 29 9,320 — 113,574 *Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of commitments and contingencies [Abstract] | |
Disclosure of detailed information about capital commitments [Text Block] | Capital commitments, which are primarily related to the campus decoration are as follows: 2017 2018 RMB RMB Contracted, but not provided for: Leasehold improvement 17,821 14,988 |
Disclosure of finance lease and operating lease by lessee [text block] | (b) Operating lease commitments, which are primarily with a related parties, are as follows: 2017 2018 RMB RMB within one year 31,515 33,764 one year to five years 132,884 145,016 Five years thereafter 436,819 497,468 601,218 676,248 |
Parent company financial stat_2
Parent company financial statement (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Condensed financial statements [Abstract] | |
Condensed Statement Of Financials [Text Block] | The following presents Hailiang Education Group Inc. or parent only financial information. HAILIANG EDUCATION GROUP INC. CONDENSED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS FOR THE YEARS ENDED JUNE 30, 2016, 2017 AND 2018 (Amounts in thousands) 2016 2017 2018 RMB RMB RMB Revenue — — — Cost of revenue — — (2,299 ) Gross profit — — (2,299 ) Other income, net — — — Selling expenses — — — Administrative expenses (10,195 ) (4,148 ) (9,124 ) Operating loss (10,195 ) (4,148 ) (11,423 ) Net finance expenses (7 ) (8 ) (17 ) Loss before tax (10,202 ) (4,156 ) (11,440 ) Income tax expense — — — Loss (10,202 ) (4,156 ) (11,440 ) Other comprehensive income (loss)-foreign currency translation differences 9,980 2,643 (3,016 ) Total comprehensive loss (222 ) (1,513 ) (14,456 ) HAILIANG EDUCATION GROUP INC. CONDENSED STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2017 AND 2018 (Amounts in thousands) 2017 RMB 2018 RMB Assets Other receivables from subsidiaries 20,178 20,330 Other receivable from related parties 98,229 86,997 Cash 2,508 526 Current assets 2,508 107,853 Total assets 120,915 107,853 Shareholders’ equity Share capital 267 268 Share premium 134,584 134,583 Translation reserve 12,126 9,110 Accumulated losses (26,063 ) (37,503 ) Total shareholders’ equity 120,914 106,458 Liabilities Other payables due to third parties — 1,393 Other payables due to related parties 1 2 Current liabilities 1 1,395 Total liabilities 1 1,395 Total shareholders’ equity and liabilities 120,915 107,853 HAILIANG EDUCATION GROUP INC. CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2016, 2017 AND 2018 (Amounts in thousands) 2016 2017 2018 RMB RMB RMB Cash flows from operating activities Loss for the year (10,202 ) (4,156 ) (11,440 ) Adjustments for: Share based payment 1,459 — — Change in other payables due to third parties (7,141 ) (1,851 ) 1,393 Change in other payables due to a related party (2,087 ) (651 ) 1 Change in other receivable due from subsidiaries (1,487 ) (347 ) (152 ) Change in other receivable due from related parties — — 3,623 Net cash used in operating activities (19,458 ) (7,005 ) (6,575 ) Cash flows from investing activities Loan made to a related party — (98,229 ) — Net cash used in investing activities — (98,229 ) — Cash flows from financing activities Proceeds from issue of ordinary shares 122,369 — — Payment of new shares issuance cost (7,844 ) — — Loan made from related parties — — 7,609 Net cash from financing activities 114,525 — 7,609 Net foreign exchange loss/(gain) 9,980 2,642 (3,016 ) Net increase/(decrease) in cash 105,047 (102,592 ) (1,982 ) Cash at the beginning of the year 53 105,100 2,508 Cash at end of the year 105,100 2,508 526 |
Reporting entity and organiza_3
Reporting entity and organization (Details) | 12 Months Ended | |
Jun. 30, 2018 | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2012 | |
Hailiang Management (previously named "Zhejiang Hailiang Education Investment Group Co., Ltd.") [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2012 | |
Description of nature of entity's operations and principal activities | Investment holding | |
Proportion of ownership interest in associate | [1] | |
Hailiang Mingxin [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | Educational consulting, after-school enrichment program | |
Proportion of ownership interest in associate | [1] | |
Hangzhou Hailiang [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2018 | |
Description of nature of entity's operations and principal activities | School management | |
Proportion of ownership interest in associate | [1] | |
Zhuji Youer [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | Technology | |
Proportion of ownership interest in associate | [1] | |
Zhuji Mingrui [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | Consulting | |
Proportion of ownership interest in associate | [1] | |
Zhuji Shangzhuo [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | Consulting | |
Proportion of ownership interest in associate | [1] | |
Zhuji Hongda [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | Trading | |
Proportion of ownership interest in associate | [1] | |
Foreign Language [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 1995 | |
Description of nature of entity's operations and principal activities | K-12 educational services | |
Proportion of ownership interest in associate | [1] | |
Experimental High [Member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2002 | |
Description of nature of entity's operations and principal activities | K-12 educational services | |
Proportion of ownership interest in associate | [1] | |
Tianma Experimental [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 1995 | |
Description of nature of entity's operations and principal activities | K-12 educational services | |
Proportion of ownership interest in associate | [1] | |
Hailiang Primary School [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2016 | |
Description of nature of entity's operations and principal activities | K-12 educational services | |
Proportion of ownership interest in associate | [1] | |
Hailiang Junior Middle School [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2016 | |
Description of nature of entity's operations and principal activities | K-12 educational services | |
Proportion of ownership interest in associate | [1] | |
Hailiang Senior Middle School [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2016 | |
Description of nature of entity's operations and principal activities | K-12 educational services | |
Proportion of ownership interest in associate | [1] | |
Hailiang High School of Art (previously named "Hailiang Art Middle School") [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of associate and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | K-12 educational services | |
Proportion of ownership interest in associate | [1] | |
Hailiang Education (HK) Limited ("Hailiang HK") [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of subsidiary and year of establishment | Hong Kong, China, 2011 | |
Description of nature of entity's operations and principal activities | Investment holding | |
Proportion of ownership interest in subsidiary | 100.00% | |
Hailiang Consulting [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of subsidiary and year of establishment | Zhejiang, China, 2011 | |
Description of nature of entity's operations and principal activities | Investment holding and school management | |
Proportion of ownership interest in subsidiary | 100.00% | |
Ningbo Hailiang [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of subsidiary and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | School logistics management | |
Proportion of ownership interest in subsidiary | 100.00% | |
Ningbo Haoliang [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of subsidiary and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | School management | |
Proportion of ownership interest in subsidiary | 100.00% | |
Zhuji Hotel [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of subsidiary and year of establishment | Zhejiang, China, 2017 | |
Description of nature of entity's operations and principal activities | Hotel management | |
Proportion of ownership interest in subsidiary | 100.00% | |
Hailiang Sports [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of subsidiary and year of establishment | Zhejiang, China, 2018 | |
Description of nature of entity's operations and principal activities | Sports activities consulting | |
Proportion of ownership interest in subsidiary | 100.00% | |
Haibo Education [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of subsidiary and year of establishment | Jiangxi, China, 2018 | |
Description of nature of entity's operations and principal activities | Educational training | |
Proportion of ownership interest in subsidiary | 56.00% | |
Haibo Logistics [member] | ||
Disclosure of reporting entity and organization [Line Items] | ||
Principal place of business of subsidiary and year of establishment | Jiangxi, China, 2018 | |
Description of nature of entity's operations and principal activities | School management | |
Proportion of ownership interest in subsidiary | 56.00% | |
[1] | These entities are controlled by the Company pursuant to the contractual arrangements disclosed below. |
Reporting entity and organiza_4
Reporting entity and organization (Details Textual) | Jan. 31, 2018 |
Haibo Education [Member] | Ningbo Haoliang [Member] | |
Disclosure of reporting entity and organization [Line Items] | |
Percentage of voting equity interests acquired | 56.00% |
Basis of preparation (Details)
Basis of preparation (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of Basis of preparation [Line Items] | |||
Total current assets | ¥ 1,126,930 | ¥ 593,100 | |
Total non-current assets | 757,920 | 805,910 | |
Total assets | 1,884,850 | 1,399,010 | |
Total current liabilities | 550,037 | 297,397 | |
Total liabilities | 550,037 | 297,397 | |
Net revenue | 1,169,348 | 853,295 | ¥ 654,060 |
Profit before tax | 297,190 | 167,743 | 99,432 |
Affiliated entities [Member] | |||
Disclosure of Basis of preparation [Line Items] | |||
Total current assets | 848,028 | 376,729 | |
Total non-current assets | 710,464 | 805,910 | |
Total assets | 1,558,492 | 1,182,639 | |
Total current liabilities | 396,238 | 197,473 | |
Total liabilities | 396,238 | 197,473 | |
Net revenue | 1,110,470 | 853,247 | 653,753 |
Profit before tax | ¥ 221,057 | ¥ 165,300 | ¥ 112,571 |
Basis of preparation (Details T
Basis of preparation (Details Textual) | Feb. 08, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Affiliated entities [Member] | ||||
Percentage of entity's revenue | 95.00% | 100.00% | 100.00% | |
Percentage of entitys assets | 82.70% | 84.50% | ||
Percentage of entitys liabilities | 72.00% | 66.40% | ||
Mr. Feng [member] | ||||
Proportion of ownership interest in subsidiary | 100.00% | |||
Beize Group [Member] | ||||
Capital contribution percentage | 0.10% |
Significant accounting polici_4
Significant accounting policies (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Motor vehicles [member] | Maximum [Member] | |
Useful lives or depreciation rates, property, plant and equipment | 10 |
Motor vehicles [member] | Minimum [Member] | |
Useful lives or depreciation rates, property, plant and equipment | 5 |
Furniture, fixtures and other equipment [member] | Maximum [Member] | |
Useful lives or depreciation rates, property, plant and equipment | 10 |
Furniture, fixtures and other equipment [member] | Minimum [Member] | |
Useful lives or depreciation rates, property, plant and equipment | 5 |
Leasehold Improvements [Member] | |
Useful lives or depreciation rates, property, plant and equipment | Shorter of the remaining lease terms or estimated useful lives |
Significant accounting polici_5
Significant accounting policies (Details Textual) | 12 Months Ended |
Jun. 30, 2018 | |
Amortization period of intangible assets, Description | Amortization of intangible assets with finite useful lives is recognized in profit or loss on a straight-line method to reflect the expected departure rate over the remaining useful life of the asset, other than goodwill, from the date that they are available for use. The estimated useful lives of student relationships are 1~15 years. |
Bottom of range [member] | |
Percent of contributions expected to be paid to plan for annual reporting period | 34.40% |
Top of range [member] | |
Percent of contributions expected to be paid to plan for annual reporting period | 41.40% |
Other income, net (Details)
Other income, net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of other operating income [Abstract] | |||
Unconditional government grants | ¥ 5,832 | ¥ 6,253 | ¥ 1,434 |
Others | (2,143) | 72 | 322 |
Other Income | ¥ 3,689 | ¥ 6,325 | ¥ 1,756 |
Other income, net (Details Text
Other income, net (Details Textual) ¥ in Thousands | 12 Months Ended |
Jun. 30, 2018CNY (¥) | |
Disclosure of other operating income [Abstract] | |
Expense from sharebased payment transactions included in other incomeexpense | ¥ 1,031 |
Losses on disposal of noncurrent assets included in other incomeexpense | ¥ 425 |
Employee benefit expenses (Deta
Employee benefit expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of employee benefits [Abstract] | |||
Wages and salaries | ¥ 388,238 | ¥ 280,786 | ¥ 230,516 |
Contributions to defined contribution plans | 52,898 | 44,884 | 27,038 |
Employee benefits expense | ¥ 441,136 | ¥ 325,670 | ¥ 257,554 |
Profit before tax (Details)
Profit before tax (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of profit loss before tax [Abstract] | |||
Interest income | ¥ 11,715 | ¥ 6,709 | ¥ 4,906 |
Net foreign exchange gain/(loss) | (324) | 282 | 1,049 |
Other expenses | 0 | (99) | (203) |
Net finance income | ¥ 11,391 | ¥ 6,892 | ¥ 5,752 |
Profit before tax (Details 1)
Profit before tax (Details 1) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of profit loss before tax [Abstract] | |||
Employee benefit expenses (Note 5) | ¥ 441,136 | ¥ 325,670 | ¥ 257,554 |
Students related cost | 133,308 | 116,273 | 100,633 |
Transportation | 36,110 | 31,823 | 24,729 |
Marketing and promotion | 24,019 | 21,240 | 15,806 |
Depreciation | 113,128 | 110,485 | 65,038 |
Utilities | 26,100 | 23,286 | 19,652 |
Amortization of intangible assets | 446 | 662 | 948 |
Operating lease charges | 33,290 | 30,030 | 25,592 |
Share based payment | 0 | 0 | 1,459 |
Cost related to overseas consulting business | 14,263 | 0 | 0 |
Others | 70,787 | 39,300 | 40,439 |
Total cost of revenue, selling expenses and administrative expenses | ¥ 892,587 | ¥ 698,769 | ¥ 551,850 |
Profit before tax (Details 2)
Profit before tax (Details 2) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of profit loss before tax [Abstract] | |||
Included in cost of revenue Depreciation | ¥ 112,039 | ¥ 109,755 | ¥ 64,642 |
Included in G&A expenses Depreciation | 1,015 | 730 | 396 |
Included in selling expenses Amortization | 446 | 662 | 948 |
Included in selling expenses Depreciation | ¥ 74 | ¥ 0 | ¥ 0 |
Profit before tax (Details Text
Profit before tax (Details Textual) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | ¥ 5,349 | ¥ 0 | ¥ 0 | |
Chuzhou School [Member] | ||||
Percentage of voting equity interest transferred | 100.00% | |||
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | ¥ 381 | |||
Disposal group assets carrying value | 1,412 | |||
Consideration paid (received) | ¥ 1,793 | |||
Hailiang Kindergarten [Member] | ||||
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | ¥ 3,285 | |||
Disposal group assets carrying value | 16,764 | |||
Consideration paid (received) | ¥ 20,049 | |||
Tianma kindergarten [Member] | ||||
Percentage of voting equity interest transferred | 100.00% | |||
Gain (loss) recognised on measurement to fair value less costs to sell or on disposal of assets or disposal groups constituting discontinued operation | ¥ 1,683 | |||
Disposal group liabilities carrying value | 17 | |||
Consideration paid (received) | ¥ 1,666 |
Income tax expenses (Details)
Income tax expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of income tax [Abstract] | |||
Net income before provision for income tax | ¥ 297,190 | ¥ 167,743 | ¥ 99,432 |
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Income tax at statutory tax rate | ¥ 74,298 | ¥ 41,936 | ¥ 24,858 |
Effect of expenses that are not deductible in determining taxable profit | 373 | 0 | 0 |
Effect of incomes that are not taxable in determining taxable profit | (956) | 0 | 0 |
Unrecognized tax losses | 70 | 2 | 133 |
Utilization of tax losses previously not recognized | (46) | (579) | 0 |
Effect of income tax exemptions | (7,451) | (41,359) | (24,991) |
Income tax expense recognized in profit or loss | ¥ 66,288 | ¥ 0 | ¥ 0 |
Income tax expenses (Details Te
Income tax expenses (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Applicable tax rate | 25.00% | 25.00% | 25.00% |
Withholding Tax Rate | 10.00% | ||
Applicability of lower tax rate, Description | A lower tax rate will be applied if such foreign non-resident enterprise investor’s jurisdiction of incorporation has signed a tax treaty or arrangement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income with China. There is such a tax arrangement between PRC and Hong Kong. Thus, the dividends, if and when payable by the Company’s PRC subsidiaries to the offshore parent entities located in Hong Kong, would be subject to 5% withholding tax rather than statutory rate of 10% provided that the offshore entities located in Hong Kong meet the requirements stipulated by relevant PRC tax regulations. | ||
Adjustments for undistributed profits of associates | ¥ 1,032,048 | ¥ 789,749 | |
Current tax expense (income) | 66,288 | ||
Unused tax losses [member] | |||
Tax credit carryforward amounts | ¥ 2,516 | ||
Hong Kong [member] | |||
Applicable tax rate | 16.50% | ||
China [member] | |||
Applicable tax rate | 25.00% |
Earnings per share (Details)
Earnings per share (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||
Jun. 30, 2018CNY (¥)¥ / sharesshares | Jun. 30, 2018$ / shares | Jun. 30, 2017CNY (¥)¥ / sharesshares | Jun. 30, 2017$ / shares | Jun. 30, 2016CNY (¥)¥ / sharesshares | Jun. 30, 2016$ / shares | |
Profit attributable to ordinary shareholders (basic and diluted) | ¥ | ¥ 222,588 | ¥ 167,743 | ¥ 99,432 | |||
Weighted average number of ordinary shares for basic EPS | 411,878,478 | 411,208,000 | 410,439,562 | |||
Effects of dilution from Warrants | 638,292 | 0 | 12,144 | |||
Weighted average number of ordinary shares adjusted for the effect of dilution | 412,516,770 | 411,208,000 | 410,451,706 | |||
Basic and diluted earnings per share | (per share) | ¥ 0.54 | $ 0.54 | ¥ 0.41 | $ 0.41 | ¥ 0.24 | $ 0.24 |
Property and equipment (Details
Property and equipment (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property and equipment [Line Items] | |||
Begining Balance | ¥ 720,619 | ||
Ending Balance | 679,081 | ¥ 720,619 | |
Cost | |||
Property and equipment [Line Items] | |||
Begining Balance | 975,708 | 885,043 | ¥ 331,494 |
Additions | 96,409 | 90,752 | 634,627 |
Transferred from construction in progress | 0 | 0 | 0 |
Disposals | (34,609) | (87) | (81,078) |
Ending Balance | 1,037,508 | 975,708 | 885,043 |
Accumulated depreciation | |||
Property and equipment [Line Items] | |||
Begining Balance | (255,089) | (144,668) | (149,817) |
Disposals | 9,790 | 64 | 70,187 |
Depreciation for the year | (113,128) | (110,485) | (65,038) |
Ending Balance | (358,427) | (255,089) | (144,668) |
Motor vehicles | |||
Property and equipment [Line Items] | |||
Begining Balance | 8,636 | ||
Ending Balance | 7,386 | 8,636 | |
Motor vehicles | Cost | |||
Property and equipment [Line Items] | |||
Begining Balance | 18,515 | 18,051 | 19,108 |
Additions | 4,454 | 464 | 828 |
Transferred from construction in progress | 0 | 0 | 0 |
Disposals | (1,566) | 0 | (1,885) |
Ending Balance | 21,403 | 18,515 | 18,051 |
Motor vehicles | Accumulated depreciation | |||
Property and equipment [Line Items] | |||
Begining Balance | (9,879) | (7,781) | (5,537) |
Disposals | 338 | 0 | 1,470 |
Depreciation for the year | (4,476) | (2,098) | (3,714) |
Ending Balance | (14,017) | (9,879) | (7,781) |
Furniture, fixtures and other equipment | |||
Property and equipment [Line Items] | |||
Begining Balance | 162,065 | ||
Ending Balance | 151,836 | 162,065 | |
Furniture, fixtures and other equipment | Cost | |||
Property and equipment [Line Items] | |||
Begining Balance | 244,189 | 166,267 | 32,318 |
Additions | 22,331 | 17,626 | 75,039 |
Transferred from construction in progress | 5,098 | 60,383 | 59,609 |
Disposals | (8,584) | (87) | (699) |
Ending Balance | 263,034 | 244,189 | 166,267 |
Furniture, fixtures and other equipment | Accumulated depreciation | |||
Property and equipment [Line Items] | |||
Begining Balance | (82,124) | (40,442) | (21,152) |
Disposals | 4,340 | 64 | 509 |
Depreciation for the year | (33,414) | (41,746) | (19,799) |
Ending Balance | (111,198) | (82,124) | (40,442) |
Leasehold improvement | |||
Property and equipment [Line Items] | |||
Begining Balance | 541,040 | ||
Ending Balance | 514,329 | 541,040 | |
Leasehold improvement | Cost | |||
Property and equipment [Line Items] | |||
Begining Balance | 704,126 | 629,247 | 182,884 |
Additions | 21,415 | 10,266 | 0 |
Transferred from construction in progress | 45,446 | 64,613 | 524,857 |
Disposals | (23,446) | 0 | (78,494) |
Ending Balance | 747,541 | 704,126 | 629,247 |
Leasehold improvement | Accumulated depreciation | |||
Property and equipment [Line Items] | |||
Begining Balance | (163,086) | (96,445) | (123,128) |
Disposals | 5,112 | 0 | 68,208 |
Depreciation for the year | (75,238) | (66,641) | (41,525) |
Ending Balance | (233,212) | (163,086) | (96,445) |
Construction in progress | |||
Property and equipment [Line Items] | |||
Begining Balance | 8,878 | ||
Ending Balance | 5,530 | 8,878 | |
Construction in progress | Cost | |||
Property and equipment [Line Items] | |||
Begining Balance | 8,878 | 71,478 | 97,184 |
Additions | 48,209 | 62,396 | 558,760 |
Transferred from construction in progress | (50,544) | (124,996) | (584,466) |
Disposals | (1,013) | 0 | 0 |
Ending Balance | 5,530 | 8,878 | 71,478 |
Construction in progress | Accumulated depreciation | |||
Property and equipment [Line Items] | |||
Begining Balance | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 |
Depreciation for the year | 0 | 0 | 0 |
Ending Balance | ¥ 0 | ¥ 0 | ¥ 0 |
Property and equipment (Detai_2
Property and equipment (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2016 | |
Loss on disposal of leasehold improvement | ¥ 10,286 | |
Disposal Group Net Book Value Property and Equipment Transferred Out | ¥ 23,433 |
Intangible assets and goodwil_2
Intangible assets and goodwill (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Begining Balance | ¥ 79,599 | ||
Ending Balance | 78,747 | ¥ 79,599 | |
Goodwill [Member] | |||
Begining Balance | 62,046 | ||
Ending Balance | 61,640 | 62,046 | |
Student relationship [Member] | |||
Begining Balance | 1,013 | ||
Ending Balance | 567 | 1,013 | |
Trademark [Member] | |||
Begining Balance | 16,540 | ||
Ending Balance | 16,540 | 16,540 | |
Cost | |||
Begining Balance | 123,217 | 123,623 | |
Disposals of component | (406) | ||
Ending Balance | 123,217 | ¥ 123,623 | |
Cost | Goodwill [Member] | |||
Begining Balance | 61,640 | 62,046 | |
Disposals of component | (406) | ||
Ending Balance | 61,640 | 62,046 | |
Cost | Student relationship [Member] | |||
Begining Balance | 45,037 | 45,037 | |
Disposals of component | 0 | ||
Ending Balance | 45,037 | 45,037 | |
Cost | Trademark [Member] | |||
Begining Balance | 16,540 | 16,540 | |
Disposals of component | 0 | ||
Ending Balance | 16,540 | 16,540 | |
Accumulated Amortization | |||
Begining Balance | (44,024) | (43,362) | (42,414) |
Amortization for the year | (446) | (662) | (948) |
Ending Balance | (44,470) | (44,024) | (43,362) |
Accumulated Amortization | Goodwill [Member] | |||
Begining Balance | 0 | 0 | 0 |
Amortization for the year | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Accumulated Amortization | Student relationship [Member] | |||
Begining Balance | (44,024) | (43,362) | (42,414) |
Amortization for the year | (446) | (662) | (948) |
Ending Balance | (44,470) | (44,024) | (43,362) |
Accumulated Amortization | Trademark [Member] | |||
Begining Balance | 0 | 0 | 0 |
Amortization for the year | 0 | 0 | 0 |
Ending Balance | ¥ 0 | ¥ 0 | ¥ 0 |
Intangible assets and goodwil_3
Intangible assets and goodwill (Details 1) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Intangible assets and goodwill [abstract] | ||
Goodwill | ¥ 61,640 | ¥ 62,046 |
Trademark | 16,540 | 16,540 |
Total | ¥ 78,180 | ¥ 78,586 |
Intangible assets and goodwil_4
Intangible assets and goodwill (Details 2) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Intangible assets and goodwill [abstract] | |||
Discount rate | 15.00% | 24.00% | 24.00% |
Terminal value growth rate | 3.00% | 3.00% | 3.00% |
Intangible assets and goodwil_5
Intangible assets and goodwill (Details Textual) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Debt Leverage Rate | 0.00% | |||
Description Of Royalty Rates Applied To Cash Flow Projections | 3.00% | 3.00% | 3.00% | |
Growth rate used to extrapolate cash flow projections | 3.00% | 3.00% | 3.00% | |
Discount rate applied to cash flow projections | 15.00% | 24.00% | 24.00% | |
Description Of Royalty Applied To Cash Flow Projections | 5 years | |||
Tianma kindergarten [Member] | ||||
Goodwill derecognised without having previously been included in disposal group classified as held for sale | ¥ 406 |
Prepayments to third party su_3
Prepayments to third party suppliers (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current prepayments [abstract] | ||
Prepayments to third party suppliers | ¥ 92 | ¥ 5,692 |
Other current assets (Details)
Other current assets (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Other current assets [Abstract] | ||
Other receivables due from third parties | ¥ 15,182 | ¥ 1,526 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |||||
Cash on hand | ¥ 30 | ¥ 21 | |||
Cash at bank | 71,857 | 16,065 | |||
Cash held at a related party finance entity | [1] | 740,733 | 61,715 | ||
Total | ¥ 812,620 | ¥ 77,801 | ¥ 291,011 | ¥ 233,379 | |
[1] | As at June 30, 2017 and 2018, the Group has cash in a related party finance entity of RMB61,715 and RMB740,733, respectively. During the years ended June 30, 2016 and 2018, net amount of RMB81,716 and RMB679,018 were placed with Hailiang Finance, respectively. During the year ended June 30, 2017, net amount of RMB109,998 were withdrawn from Hailiang Finance. The cash in a related party finance entity are held for the purpose of meeting short-term cash commitments, such as to pay for the Group’s operating expenses at any time. As at June 30, 2017 and 2018, the Group has term deposits with maturities ranging from three months to less than one year amounting to RMB401,000 and RMB204,000 that are placed at Hailiang Finance, respectively. During the years ended June 30, 2016, 2017 and 2018, term deposits of RMB1,212,430, RMB1,953,600 and RMB204,000 was placed with Hailiang Finance, of which RMB1,272,430, RMB1,552,600 and RMB401,000 matured, respectively. The term deposits are held for investment purpose and can be withdrawn prior to their maturity without incurring significant penalties. Such amounts have been presented as investing activities in the statements of cash flows. The interest income from the deposits during the years ended June 30, 2016, 2017 and 2018 amounted to RMB2,683, RMB5,847 and RMB11,464, respectively. |
Cash and cash equivalents (De_2
Cash and cash equivalents (Details Textual) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Cash and cash equivalents | ¥ 812,620 | ¥ 77,801 | ¥ 291,011 | ¥ 233,379 |
Group denominated [member] | ||||
Cash and cash equivalents | ¥ 799,147 | ¥ 62,030 |
Share-based payment (Details)
Share-based payment (Details) - $ / shares | Sep. 14, 2015 | Jul. 31, 2015 |
warrants [member] | ||
Expected volatility | 50.96% | |
Risk-free interest rate | 0.96% | |
Expected dividend | 0.00% | |
Expected life of the warrant | 3 | |
Fair value of conversion share | $ 7 | |
Restricted Stock [member] | ||
Expected volatility | 55.56% | |
Risk-free interest rate | 0.293% | |
Expected dividend | 0.00% | |
Expected life of the restricted shares | 0.5 | |
Hypothetical fair value of conversion share | $ 1 |
Share-based payment (Details Te
Share-based payment (Details Textual) $ / shares in Units, ¥ in Thousands, $ in Thousands | Sep. 14, 2015CNY (¥) | Sep. 14, 2015USD ($)$ / sharesshares | Jul. 31, 2015CNY (¥) | Jul. 31, 2015USD ($)$ / shares | Jun. 30, 2018 |
Description of Class of Warrant or Right, Title of Security Warrants or Rights Outstanding | <tr><td></td></tr></table>" id="sjs-F2">designees a warrant for the purchase of 142,900 ADSs, equal to 5% of the aggregate number of ADSs sold in the IPO. The Underwriter’s warrant shall be exercisable, in whole or in part, during a period commencing on a date that is six months after the closing of the Company’s IPO, which is January 6, 2016, and expiring on the three-year anniversary of the closing of the Company’s IPO at an initial exercise price per ADS of US$8.75, which is equal to 125% of the IPO price of the ADSs.<table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> | ||||
Par value per share | $ 0.0001 | ||||
Ordinary shares [member] | Business Consulting Service Agreement [member] | |||||
Number of shares issued | shares | 480,000 | ||||
Par value per share | $ 0.0001 | ||||
Independent Appraiser [member] | Business Consulting Service Agreement [member] | |||||
Fair Value of Adjustment of Restricted Stock | ¥ 1,459 | $ 229 | |||
Independent Appraiser [member] | Network 1 Financial Securities, Inc. [member] | |||||
Fair Value of Adjustment of Warrants | ¥ 1,707 | $ 279 |
Capital and reserve (Details)
Capital and reserve (Details) - shares | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 12, 2012 | Apr. 07, 2011 |
Capital and reserve [Abstract] | |||||||
Number of shares authorised | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 365,000,000 | 365,000,000 | 360,000,000 |
Number of shares outstanding | 412,450,256 | 411,208,000 | 411,208,000 |
Capital and reserve (Details Te
Capital and reserve (Details Textual) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands, $ in Thousands | Dec. 15, 2017 | Mar. 12, 2012CNY (¥)shares | Mar. 12, 2012USD ($)shares | Sep. 30, 2015CNY (¥) | Sep. 30, 2015USD ($) | Jul. 31, 2015CNY (¥)¥ / sharesshares | Nov. 30, 2011CNY (¥) | Jun. 30, 2018CNY (¥)shares | Jun. 30, 2018HKD ($) | Jun. 30, 2017CNY (¥)shares | Jun. 30, 2016CNY (¥)shares | Jun. 30, 2012shares | Jun. 30, 2018USD ($)shares | Jul. 31, 2015$ / sharesshares | Dec. 31, 2014shares | Dec. 31, 2013shares | Apr. 30, 2012CNY (¥) | Jun. 30, 2011CNY (¥) | Apr. 07, 2011shares | Jul. 31, 2009 | Dec. 31, 2001 |
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Number of shares authorised | shares | 365,000,000 | 365,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 365,000,000 | 360,000,000 | ||||||||||||
Number of ordinary share in exchange of each other share | shares | 16 | 16 | |||||||||||||||||||
Par value per share | $ / shares | $ 0.0001 | ||||||||||||||||||||
Number of instruments granted in share-based payment arrangement | 480,000 | 480,000 | |||||||||||||||||||
Value of instruments granted in share-based payment arrangement | ¥ 1,459 | $ 229 | |||||||||||||||||||
Share deficit | ¥ 236 | ||||||||||||||||||||
Proceeds from issuing shares | ¥ 0 | ¥ 0 | ¥ 122,369 | ||||||||||||||||||
Share issue related cost | (9,551) | ||||||||||||||||||||
Par value of ordinary shares issued to public | ¥ / shares | ¥ 28 | ||||||||||||||||||||
Net proceeds from issuing shares | ¥ 112,790 | ||||||||||||||||||||
Contributed registered capital | ¥ 41,000 | 82,800 | |||||||||||||||||||
Proceeds from contributions of non-controlling interests | ¥ 1,459 | 32,906 | 32,906 | ||||||||||||||||||
Charge to deduct capital | 8,094 | ||||||||||||||||||||
Capital contribution | ¥ 235,895 | 235,895 | |||||||||||||||||||
Description of annual appropriation for general reserve | general reserve requires annual appropriation 10% of after-tax profits at each year-end until the balance reaches 50% of the PRC company’s registered capital | general reserve requires annual appropriation 10% of after-tax profits at each year-end until the balance reaches 50% of the PRC company’s registered capital | |||||||||||||||||||
General reserve | ¥ 0 | 20,096 | |||||||||||||||||||
Education development reserve, percentage | 25.00% | 25.00% | |||||||||||||||||||
Education development reserve | ¥ 284,427 | 267,358 | |||||||||||||||||||
warrants [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 1,242,256 | ||||||||||||||||||||
American depositary shares [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Public offering price per share | $ / shares | $ 7 | ||||||||||||||||||||
Issue of equity in number | shares | 2,858,000 | 2,858,000 | |||||||||||||||||||
American depositary shares [Member] | warrants [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Number of other equity instruments exercised or vested in share-based payment arrangement | 77,641 | ||||||||||||||||||||
Issued capital [member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Share issue related cost | ¥ 0 | ||||||||||||||||||||
Issue of equity in number | shares | 45,728,000 | 45,728,000 | |||||||||||||||||||
HailiangHK [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Proceeds from contributions of non-controlling interests | ¥ 9 | $ 10 | |||||||||||||||||||
Hailiang Education Investment Group Co Ltd [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Capital contribution | ¥ 10,000 | ¥ 139,980 | |||||||||||||||||||
Independent Appraiser [Member] | Network 1 Financial Securities, Inc. [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Fair Value of Adjustment of Warrants | ¥ 1,707 | ||||||||||||||||||||
Maxida International Company Limited [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Increase (decrease) in number of ordinary shares issued | shares | 5,000,000 | 5,000,000 | 18,864 | ||||||||||||||||||
Proceeds from issue of ordinary shares | ¥ 18,867 | $ 3,000 | |||||||||||||||||||
Proportion of equity interest held by third party | 1.40% | 1.40% | |||||||||||||||||||
Foreign Language [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Percentage of contribution to registered capital | 100.00% | 100.00% | |||||||||||||||||||
Tianma Experimental School [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Consideration transferred, acquisition-date fair value | 6,000 | ||||||||||||||||||||
Percentage of voting equity interests acquired | 80.00% | ||||||||||||||||||||
Financial assets recognised as of acquisition date | ¥ 4,116 | ||||||||||||||||||||
Percentage of Noncontrolling Interests Acquired | 20.00% | ||||||||||||||||||||
Consideration For Acquisition Equity Interest | $ | $ 110,000 | ||||||||||||||||||||
Three Schools [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Percentage of contribution to registered capital | 100.00% | ||||||||||||||||||||
Equity interest transferred , Cash Consideration | ¥ 139,800 | ||||||||||||||||||||
Hailiang Experimental High School [Member] | |||||||||||||||||||||
Disclosure Of Capital and reserve [Line Items] | |||||||||||||||||||||
Consideration transferred, acquisition-date fair value | ¥ 35,000 | ||||||||||||||||||||
Percentage of voting equity interests acquired | 60.00% | ||||||||||||||||||||
Financial assets recognised as of acquisition date | ¥ 28,790 | ||||||||||||||||||||
Percentage of Noncontrolling Interests Acquired | 40.00% |
Non-controlling interests (Deta
Non-controlling interests (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Disclosure Of Non controlling Interest [Line Items] | ||||
Balance at June 30, 2017 | ¥ 0 | |||
Transfer of equity interests to non-controlling interest shareholders | [1] | 4,840 | ||
Net profit attributed to non-controlling interest shareholders | 8,314 | ¥ 0 | ¥ 0 | |
Balance at June 30, 2018 | 13,154 | 0 | ||
Haibo Education [Member] | ||||
Disclosure Of Non controlling Interest [Line Items] | ||||
Balance at June 30, 2017 | 0 | |||
Transfer of equity interests to non-controlling interest shareholders | [1] | 2,640 | ||
Net profit attributed to non-controlling interest shareholders | 6,750 | |||
Balance at June 30, 2018 | 9,390 | 0 | ||
Haibo Logistic [Member] | ||||
Disclosure Of Non controlling Interest [Line Items] | ||||
Balance at June 30, 2017 | 0 | |||
Transfer of equity interests to non-controlling interest shareholders | [1] | 2,200 | ||
Net profit attributed to non-controlling interest shareholders | 1,564 | |||
Balance at June 30, 2018 | ¥ 3,764 | ¥ 0 | ||
[1] | In August, 2017, Haibo Education and Haibo Logistics were incorporated by Xinyu Baishu, an entity ultimately controlled by Mr. Feng. The contributed capital from Xinyu Baishu was RMB6,000 and RMB5,000, respectively. In January 2018, Xinyu Baishu transferred 56% equity interests in Haibo Education and Haibo Logistics to Ningbo Haoliang with considerations of RMB3,360 and RMB2,800, respectively. The considerations were equivalent to the cost of 56% of the contributed capital since Haibo Education and Haibo Logistics had no substantive operation as of the acquisition date. Haibo Education and Haibo Logistics were under common control with the Company both immediately before and after the acquisition, and the Company recognized the assets and liabilities of Haibo Education and Haibo Logistics at historical cost. In January 2018, Xinyu Baishu also transferred the remaining 44% equity interest in Haibo Education and Haibo Logistics to Nanchang Baishu, a related party of the Company. The 44% equity interests owned by Nanchang Baishu were reocorded as non-controlling interests (see note 16). |
Non-controlling interests (De_2
Non-controlling interests (Details Textual) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Non controlling Interest [Abstract] | |
Proportion of ownership interests held by non-controlling interests | 44.00% |
Trade and other payables (Detai
Trade and other payables (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of Trade and other payables [Line Items] | ||
Trade payable | ¥ 22,309 | ¥ 22,662 |
Accrued payroll | 68,351 | 50,013 |
Amount due to third parties | 50,844 | 41,188 |
Trade and other payables | 141,504 | 113,863 |
Amount due to related parties | 138,215 | 124,841 |
Total | ¥ 279,719 | ¥ 238,704 |
Financial risk management and_3
Financial risk management and fair values (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financial risk management and fair values [Line Items] | ||
Carrying amount | ¥ 279,719 | ¥ 238,704 |
Contractual cash flows | 279,719 | 238,704 |
1 year or less | ¥ 279,719 | ¥ 238,704 |
Financial risk management and_4
Financial risk management and fair values (Details 1) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Increase [Member] | ||
Financial risk management and fair values [Line Items] | ||
Change in USD rate | 5.00% | 5.00% |
Effect on profit before tax | ¥ 0 | ¥ 0 |
Effect on equity | ¥ 5,393 | ¥ 6,046 |
Decrease [Member] | ||
Financial risk management and fair values [Line Items] | ||
Change in USD rate | (5.00%) | (5.00%) |
Effect on profit before tax | ¥ 0 | ¥ 0 |
Effect on equity | ¥ (5,393) | ¥ (6,046) |
Financial risk management and_5
Financial risk management and fair values (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | ||
Financial risk management and fair values [Line Items] | ||||
Cash held at a related party finance entity | [1] | ¥ 740,733 | ¥ 61,715 | |
Term deposits held by related party | [1] | ¥ 204,000 | 401,000 | |
Percentage of consolidated current assets | 84.00% | |||
Annual budget for the aggregate amount deposit with Hailiang Finance | ¥ 1,200,000 | |||
Borrowings, interest rate basis | 10 | |||
Increase Decrease in profit after tax | 479 | |||
Increase (decrease) in equity | ¥ 1,016 | |||
Receivables due from related parties | [1],[2],[3],[4] | 95,128 | 112,773 | |
Other current assets | ¥ 15,182 | ¥ 1,526 | ||
Bottom of range [member] | ||||
Financial risk management and fair values [Line Items] | ||||
Interest rate on bank deposits | 0.35% | 0.35% | ||
Top of range [member] | ||||
Financial risk management and fair values [Line Items] | ||||
Interest rate on bank deposits | 1.82% | 1.43% | ||
[1] | As at June 30, 2017 and 2018, the Group has cash in a related party finance entity of RMB61,715 and RMB740,733, respectively. During the years ended June 30, 2016 and 2018, net amount of RMB81,716 and RMB679,018 were placed with Hailiang Finance, respectively. During the year ended June 30, 2017, net amount of RMB109,998 were withdrawn from Hailiang Finance. The cash in a related party finance entity are held for the purpose of meeting short-term cash commitments, such as to pay for the Group’s operating expenses at any time. As at June 30, 2017 and 2018, the Group has term deposits with maturities ranging from three months to less than one year amounting to RMB401,000 and RMB204,000 that are placed at Hailiang Finance, respectively. During the years ended June 30, 2016, 2017 and 2018, term deposits of RMB1,212,430, RMB1,953,600 and RMB204,000 was placed with Hailiang Finance, of which RMB1,272,430, RMB1,552,600 and RMB401,000 matured, respectively. The term deposits are held for investment purpose and can be withdrawn prior to their maturity without incurring significant penalties. Such amounts have been presented as investing activities in the statements of cash flows. The interest income from the deposits during the years ended June 30, 2016, 2017 and 2018 amounted to RMB2,683, RMB5,847 and RMB11,464, respectively. | |||
[2] | During the years ended June 30, 2016, 2017 and 2018, Hailiang Group paid professional service fees and other expenses of RMB3,356, RMB3,836 and RMB4,612 on behalf of the Group, respectively. Such amount is due and payable on demand, and the Group repaid RMB1,782, RMB4,536 and RMB4,124 to Hailiang Group during the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2016, the Group paid RMB11,567 on behalf of Hailiang Hospital for leasehold improvement, the balance has been fully returned to the Group on September 21, 2016. During the year ended June 30, 2018, the Group paid expenses of RMB4,259, RMB2,764, RMB1,016 and RMB1,181 on behalf of Hailiang Preschool, Hailiang Kindergarten, Hailiang Investment, Hailiang Hospital, respectively. Such amounts are receivable on demand, and the related parties aforementioned repaid RMB4,422, RMB3,135, RMB1,014 and RMB163 during the year ended June 30, 2018, respectively. The unpaid expenses due to related parties and the uncollected amount due from related parties was included in “Amount due to related parties” and “Amount due from related parties” as of June 30, 2016, 2017 and 2018, respectively. | |||
[3] | Each of the schools leases the school buildings and the related facilities from Hailiang Investment, a related party controlled by Mr. Feng. Haibo Education leases the office space from Nanchang Hongtou Property Management Co., Ltd, a related party owned by the Group’s non-controlling shareholder. The leasing term and rental amount of each of the three campuses and office space is as follows:Related parties transactions (Details 1) During the years ended June 30, 2016, 2017 and 2018, the Group paid rental fees of RMB25,783, RMB27,300 and RMB15,956, respectively. Hailiang Investment waived the 2013 and 2014 rental fees with an amount of RMB10,000 in the year ended June 30, 2017. Amount due to Hailiang Investment was RMB739 as of June 30, 2018, which was included in the “Amount due to related parties”. The prepaid rental fee to Hailiang Investment as of June 30, 2017 was RMB14,270 which was included in the “Amount due from related parties”. | |||
[4] | On October 31, 2016, the Company provided a one-year-period loan to Hong Kong Leonit Limited (“Leonit”) amounting to USD14,500, approximately RMB98,229 (“USD Loan”). On the same date, Hailiang Consulting made a one-year-period loan from Hailiang Group Co., Ltd amounting to RMB99,603 with interest free (“RMB Loan”). On October 9, 2017, the Company agreed to extend the loan with Leonit, pursuant to which the USD Loan’s due date was extended to due October 30, 2018. Similarly, Hailiang Group and Hailiang Consulting agreed to a loan extension pursuant to which the RMB Loan was due on October 30, 2018. Through an understanding among the aforementioned parties, the USD Loans are “secured” by the RMB Loan. It is the understanding among the parties that when the USD Loan is repaid, the RMB Loan will similarly be repaid. On December 5, 2017, the Company made a one-year-period loan from Leonit amounting to USD1,150, approximately RMB7,609, for the need of US Dollars. The loan of RMB98,229 made to Leonit and loan of RMB7,609 made from Leonit were recognized in “Amount due from related parties”, and the loan of RMB99,603 made from Hailiang Group was recognized in “Amount due to related parties” as of June 30, 2018. |
Related parties transactions (D
Related parties transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Disclosure of related party [Line Items] | ||||
Loans made from a related party | [1] | ¥ 7,609 | ¥ 99,603 | ¥ 0 |
Loans made to a related party | [1] | 0 | 98,229 | 0 |
Interest income from deposits placed with a related party finance entity | [2] | 11,464 | 5,847 | 2,683 |
Net deposits/(withdrawals) of cash at a related party finance entity | [2] | 679,018 | (109,998) | 81,716 |
Term deposits placed with a related party finance entity | [2] | 204,000 | 1,953,600 | 1,212,430 |
Maturity of term deposits placed with a related party finance entity | [2] | 401,000 | 1,552,600 | 1,272,430 |
Rental expenses | [3] | 32,486 | 30,030 | 25,433 |
Expenses paid by a related party on behalf of the Group | [4] | 4,612 | 3,836 | 3,356 |
Repayment of expenses paid by a related party on behalf of the Group | [4] | 4,124 | 4,536 | 1,782 |
Expenses paid by the Group on behalf of a related party | [4] | 9,401 | 0 | 11,567 |
Repayment of expenses paid by the Group on behalf of a related party | [4] | 8,794 | 0 | 0 |
Payments of leasehold improvement to a related party | [4],[5] | 24,280 | 29,406 | 22,661 |
Purchase of healthy food from a related party | [6] | 38,323 | 48,298 | 48,517 |
Product sale revenue and service fee from a related party | [7] | 17,247 | 3,766 | 1,962 |
Service fee paid to a related party | [8] | 6,884 | 0 | 0 |
Waive of liability to a related party | [3] | 0 | 10,000 | 0 |
Gains from disposal of affiliated entities to a related party | [9] | 5,349 | 0 | 0 |
Acquisition payment to a related party | [10] | 6,160 | 0 | ¥ 0 |
Amount due from a related party | [1],[2],[3],[4] | 95,128 | 112,773 | |
Cash held at a related party finance entity | [2] | 740,733 | 61,715 | |
Term deposits placed with a related party finance entity | [2] | 204,000 | 401,000 | |
Amount due to related parties | [1],[3],[4],[5],[6] | ¥ 138,215 | ¥ 124,841 | |
[1] | On October 31, 2016, the Company provided a one-year-period loan to Hong Kong Leonit Limited (“Leonit”) amounting to USD14,500, approximately RMB98,229 (“USD Loan”). On the same date, Hailiang Consulting made a one-year-period loan from Hailiang Group Co., Ltd amounting to RMB99,603 with interest free (“RMB Loan”). On October 9, 2017, the Company agreed to extend the loan with Leonit, pursuant to which the USD Loan’s due date was extended to due October 30, 2018. Similarly, Hailiang Group and Hailiang Consulting agreed to a loan extension pursuant to which the RMB Loan was due on October 30, 2018. Through an understanding among the aforementioned parties, the USD Loans are “secured” by the RMB Loan. It is the understanding among the parties that when the USD Loan is repaid, the RMB Loan will similarly be repaid. On December 5, 2017, the Company made a one-year-period loan from Leonit amounting to USD1,150, approximately RMB7,609, for the need of US Dollars. The loan of RMB98,229 made to Leonit and loan of RMB7,609 made from Leonit were recognized in “Amount due from related parties”, and the loan of RMB99,603 made from Hailiang Group was recognized in “Amount due to related parties” as of June 30, 2018. | |||
[2] | As at June 30, 2017 and 2018, the Group has cash in a related party finance entity of RMB61,715 and RMB740,733, respectively. During the years ended June 30, 2016 and 2018, net amount of RMB81,716 and RMB679,018 were placed with Hailiang Finance, respectively. During the year ended June 30, 2017, net amount of RMB109,998 were withdrawn from Hailiang Finance. The cash in a related party finance entity are held for the purpose of meeting short-term cash commitments, such as to pay for the Group’s operating expenses at any time. As at June 30, 2017 and 2018, the Group has term deposits with maturities ranging from three months to less than one year amounting to RMB401,000 and RMB204,000 that are placed at Hailiang Finance, respectively. During the years ended June 30, 2016, 2017 and 2018, term deposits of RMB1,212,430, RMB1,953,600 and RMB204,000 was placed with Hailiang Finance, of which RMB1,272,430, RMB1,552,600 and RMB401,000 matured, respectively. The term deposits are held for investment purpose and can be withdrawn prior to their maturity without incurring significant penalties. Such amounts have been presented as investing activities in the statements of cash flows. The interest income from the deposits during the years ended June 30, 2016, 2017 and 2018 amounted to RMB2,683, RMB5,847 and RMB11,464, respectively. | |||
[3] | Each of the schools leases the school buildings and the related facilities from Hailiang Investment, a related party controlled by Mr. Feng. Haibo Education leases the office space from Nanchang Hongtou Property Management Co., Ltd, a related party owned by the Group’s non-controlling shareholder. The leasing term and rental amount of each of the three campuses and office space is as follows:Related parties transactions (Details 1) During the years ended June 30, 2016, 2017 and 2018, the Group paid rental fees of RMB25,783, RMB27,300 and RMB15,956, respectively. Hailiang Investment waived the 2013 and 2014 rental fees with an amount of RMB10,000 in the year ended June 30, 2017. Amount due to Hailiang Investment was RMB739 as of June 30, 2018, which was included in the “Amount due to related parties”. The prepaid rental fee to Hailiang Investment as of June 30, 2017 was RMB14,270 which was included in the “Amount due from related parties”. | |||
[4] | During the years ended June 30, 2016, 2017 and 2018, Hailiang Group paid professional service fees and other expenses of RMB3,356, RMB3,836 and RMB4,612 on behalf of the Group, respectively. Such amount is due and payable on demand, and the Group repaid RMB1,782, RMB4,536 and RMB4,124 to Hailiang Group during the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2016, the Group paid RMB11,567 on behalf of Hailiang Hospital for leasehold improvement, the balance has been fully returned to the Group on September 21, 2016. During the year ended June 30, 2018, the Group paid expenses of RMB4,259, RMB2,764, RMB1,016 and RMB1,181 on behalf of Hailiang Preschool, Hailiang Kindergarten, Hailiang Investment, Hailiang Hospital, respectively. Such amounts are receivable on demand, and the related parties aforementioned repaid RMB4,422, RMB3,135, RMB1,014 and RMB163 during the year ended June 30, 2018, respectively. The unpaid expenses due to related parties and the uncollected amount due from related parties was included in “Amount due to related parties” and “Amount due from related parties” as of June 30, 2016, 2017 and 2018, respectively. | |||
[5] | The Group entered into a series of leasehold improvement contracts with Heng Zhong Da for the leasehold improvement of classroom buildings, dining halls, student dormitories and amount of the contracts was RMB19,680, RMB34,626 and RMB23,174 for the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2018, Heng Zhong Da has provided service and improvement of RMB352,287 (RMB285,958, RMB37,231 and RMB29,098 in fiscal year 2016, 2017 and 2018), which was recorded in “Property and Equipment”. The Group has paid RMB22,661, RMB29,406 and RMB24,280 to Heng Zhong Da during the years ended June 30, 2016, 2017 and 2018, respectively. The accumulate payment included the payment of RMB11,567 on behalf of Hailiang Hospital (see Note 19 (a)(iv)) in the 2016 fiscal year. The unpaid balance of RMB19,508 as of June 30, 2018 was recognized in “Amount due to related parties”. | |||
[6] | The Group purchased healthy food products from Ming Kang Hui Health Food Group Co., Ltd. and Ming Kang Hui Ecological Agriculture Group Co., Ltd. (collectively referred as “Ming Kang Hui”), two companies owned by Hailiang Group, amounting to RMB48,517, RMB48,298 and RMB38,323 during the years ended June 30, 2016, 2017 and 2018, respectively. The amount due to Ming Kang Hui was RMB30,005, RMB6,876 and RMB5,386 as of June 30, 2016, 2017 and 2018, respectively. | |||
[7] | The products sold, services provided to related parties are as follow: Related parties transactions (Details 2) | |||
[8] | The Group paid information service fee to Hangzhou Mingxin Information Technology Co., Ltd., a related party controlled by Hailiang Group, amounting to RMB6,884 during the year ended June 30, 2018. | |||
[9] | The gains were recognized from disposal of Hailiang Kindergarten, Tianma Kindergarten and Chuzhou School (see Note 6 (iv) for additional details), amounting to RMB3,285, RMB1,683 and RMB381 during the year ended June 30, 2018, respectively. | |||
[10] | In August 2017, Haibo Education and Haibo Logistics were incorporated by Xinyu Baishu, an entity ultimately controlled by Mr. Feng. The contributed capital from Xinyu Baishu was RMB6,000 and RMB5,000, respectively. In January 2018, Xinyu Baishu transferred 56% equity interests in Haibo Education and Haibo Logistics to Ningbo Haoliang with considerations of RMB3,360 and RMB2,800, respectively. The considerations were equivalent to the cost of 56% of the contributed capital since Haibo Education and Haibo Logistics had no substantive operation as of the acquisition date. Haibo Education and Haibo Logistics were under common control with the Company both immediately before and after the acquisition, and the Company recognized the assets and liabilities of Haibo Education and Haibo Logistics at historical cost. In January 2018, Xinyu Baishu also transferred the remaining 44% equity interest in Haibo Education and Haibo Logistics to Nanchang Baishu, a related party of the Company. The 44% equity interests owned by Nanchang Baishu were reocorded as non-controlling interests (see note 16). |
Related parties transactions _2
Related parties transactions (Details 1) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Disclosure of related party [Line Items] | ||||
Rental expense | [1] | ¥ 32,486 | ¥ 30,030 | ¥ 25,433 |
Foreign Language [member] | ||||
Disclosure of related party [Line Items] | ||||
Rental expense | ¥ 0 | 0 | 166 | |
Leasing period | July 1, 2009 ~ September 1, 2015 | |||
Experimental High [member] | ||||
Disclosure of related party [Line Items] | ||||
Rental expense | ¥ 7,718 | 7,350 | 7,000 | |
Leasing period | July 1, 2017 ~ June 30,2037 | |||
Tianma Experimental [member] | ||||
Disclosure of related party [Line Items] | ||||
Rental expense | ¥ 1,764 | 1,680 | 1,600 | |
Leasing period | July 1, 2015 ~ June 30,2035 | |||
Hailiang Education Park [member] | ||||
Disclosure of related party [Line Items] | ||||
Rental expense | ¥ 21,483 | 21,000 | 16,667 | |
Leasing period | September 1, 2017 ~ August 31, 2037 | |||
Haibo Education [member] | ||||
Disclosure of related party [Line Items] | ||||
Rental expense | ¥ 1,521 | ¥ 0 | ¥ 0 | |
Leasing period | July 1, 2017 ~ June 30,2022 | |||
[1] | Each of the schools leases the school buildings and the related facilities from Hailiang Investment, a related party controlled by Mr. Feng. Haibo Education leases the office space from Nanchang Hongtou Property Management Co., Ltd, a related party owned by the Group’s non-controlling shareholder. The leasing term and rental amount of each of the three campuses and office space is as follows:Related parties transactions (Details 1) During the years ended June 30, 2016, 2017 and 2018, the Group paid rental fees of RMB25,783, RMB27,300 and RMB15,956, respectively. Hailiang Investment waived the 2013 and 2014 rental fees with an amount of RMB10,000 in the year ended June 30, 2017. Amount due to Hailiang Investment was RMB739 as of June 30, 2018, which was included in the “Amount due to related parties”. The prepaid rental fee to Hailiang Investment as of June 30, 2017 was RMB14,270 which was included in the “Amount due from related parties”. |
Related parties transactions _3
Related parties transactions (Details 2) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Disclosure of related party [Line Items] | ||||
Product Sale | ¥ 148 | ¥ 0 | ¥ 0 | |
Total | [1] | 17,247 | 3,766 | 1,962 |
Management Service Fee (Member) | ||||
Disclosure of related party [Line Items] | ||||
Revenue from rendering of services, related party transactions | [2] | 12,275 | 0 | 0 |
Ming Kang Hui Supermarket Service Fee [Member] | ||||
Disclosure of related party [Line Items] | ||||
Revenue from rendering of services, related party transactions | [3] | 4,556 | 3,766 | 1,962 |
Hotel Service Fee [Member] | ||||
Disclosure of related party [Line Items] | ||||
Revenue from rendering of services, related party transactions | ¥ 268 | ¥ 0 | ¥ 0 | |
[1] | The products sold, services provided to related parties are as follow: Related parties transactions (Details 2) | |||
[2] | Pursuant to the strategic cooperation agreement signed with Hailiang Group and Hailiang Investment, the Group provided management services to schools acquired by Hailiang Investment, including Hubei Xiantao No.1 Middle School, Zhejiang Xinchang Nanrui Experimental School and 14 schools sponsored or operated by Nanchang Baishu Technology Co., Ltd., which is controlled by Hailiang Investment. Service fees of RMB12,275 was charged from the abovementioned schools during the year ended June 30, 2018. | |||
[3] | The Group charged service fee from supermarkets, which are operated by Ming Kang Hui in campuses, amounting to RMB1,962, RMB3,766 and RMB4,556 during the years ended June 30, 2016, 2017 and 2018, respectively. |
Related parties transactions _4
Related parties transactions (Details 3) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related party [Abstract] | |||
Compensation | ¥ 8,162 | ¥ 7,614 | ¥ 6,383 |
Related parties transactions _5
Related parties transactions (Details Textual) ¥ in Thousands, $ in Thousands | Dec. 05, 2017CNY (¥) | Dec. 05, 2017USD ($) | Jan. 31, 2018CNY (¥) | Aug. 31, 2017CNY (¥) | Oct. 31, 2016CNY (¥) | Oct. 31, 2016USD ($) | Jun. 30, 2018CNY (¥) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | |
Disclosure of related party [Line Items] | ||||||||||
Cash payments for loan made to related party | [1] | ¥ 0 | ¥ 98,229 | ¥ 0 | ||||||
Cash loans from related parties | [1] | 7,609 | 99,603 | 0 | ||||||
Cash held at a related party finance entity | [2] | 740,733 | 61,715 | |||||||
Net deposits(withdrawals) of cash at a related party finance entity | [2] | 679,018 | (109,998) | 81,716 | ||||||
Term deposits held by related party | [2] | 204,000 | 401,000 | |||||||
Cash payments for term deposits placed with related party finance entity | [2] | 204,000 | 1,953,600 | 1,212,430 | ||||||
Cash receipts of maturity of term deposits placed with related party finance entity | [2] | 401,000 | 1,552,600 | 1,272,430 | ||||||
Interest income on deposits | [2] | 11,464 | 5,847 | 2,683 | ||||||
Amount due from related parties | 99,603 | |||||||||
Proceeds from expenses paid by related party on behalf of entity | [3] | 4,612 | 3,836 | 3,356 | ||||||
Repayment of expenses paid by a related party on behalf of the Group | [3] | 4,124 | 4,536 | 1,782 | ||||||
Property, plant and equipment | 679,081 | 720,619 | ||||||||
Payments of leasehold improvement to related party | [3],[4] | 24,280 | 29,406 | 22,661 | ||||||
Cash Payments For Purchase Of Healthy Food From Related Parties | [5] | 38,323 | 48,298 | 48,517 | ||||||
Service fee paid to a related party | [6] | 6,884 | 0 | 0 | ||||||
Revenue from sale of goods, related party transactions | 148 | 0 | 0 | |||||||
Proceeds from contributions of former shareholder | ¥ 11,000 | 0 | 0 | |||||||
Proportion of ownership interests held by non-controlling interests | 44.00% | |||||||||
Consideration percentage on contributed capital | 56.00% | |||||||||
Haibo Logistics [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Proceeds from contributions of former shareholder | ¥ 5,000 | |||||||||
Haibo Logistics [Member] | Nanchang Baishu [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Proportion of ownership interests held by non-controlling interests | 44.00% | |||||||||
Haibo Logistics [Member] | Ningbo Haoliang [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Percentage of voting equity interests acquired | 56.00% | |||||||||
Consideration paid (received) | ¥ 2,800 | |||||||||
Ming Kang Hui [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Amount due to related parties | ¥ 5,386 | 6,876 | 30,005 | |||||||
Revenue from sale of goods, related party transactions | 4,556 | 3,766 | 1,962 | |||||||
Zhuji Hai Liang Preschool Education Investment Co Ltd [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Repayment of expenses paid by a related party on behalf of the Group | 4,422 | |||||||||
Cash payments on behalf of related parties | 4,259 | |||||||||
Hailiang international kindergarten [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Repayment of expenses paid by a related party on behalf of the Group | 3,135 | |||||||||
Cash payments on behalf of related parties | 2,764 | |||||||||
Hailiang Education Investment Group Co Ltd [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Amount due to related parties | 739 | |||||||||
Cash payments for rental fees | 15,956 | 27,300 | 25,783 | |||||||
Amount due from related parties | 14,270 | |||||||||
Repayment of expenses paid by a related party on behalf of the Group | 1,014 | |||||||||
Cash payments on behalf of related parties | 1,016 | |||||||||
Cash Receivable For Rental Fees | 10,000 | |||||||||
Zhuji Hailiang Hospital [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Repayment of expenses paid by a related party on behalf of the Group | 163 | |||||||||
Cash payments on behalf of related parties | 1,181 | |||||||||
Management Service Fee [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Revenue from rendering of services, related party transactions | [7] | 12,275 | 0 | 0 | ||||||
Hangzhou Mingxin Information Service Fee [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Service fee paid to a related party | 6,884 | |||||||||
Tianma Experimental School [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Gains From Disposal Of Affiliated Entities To A Related Party | 1,683 | |||||||||
Hailiang Kindergarten [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Gains From Disposal Of Affiliated Entities To A Related Party | 3,285 | |||||||||
Chuzhou School [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Gains From Disposal Of Affiliated Entities To A Related Party | 381 | |||||||||
Hong Kong Leonit Limited [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Cash payments for loan made to related party | ¥ 98,229 | $ 14,500 | 98,229 | |||||||
Cash loans from related parties | ¥ 7,609 | $ 1,150 | ¥ 99,603 | |||||||
Hailiang Hospital [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Cash payments on behalf of related parties | 11,567 | |||||||||
Heng Zhong Da Construction Co Ltd [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Amount due to related parties | 19,508 | |||||||||
Contract liabilities | 23,174 | 34,626 | 19,680 | |||||||
Property, plant and equipment | 352,287 | |||||||||
Additions other than through business combinations, property, plant and equipment | 29,098 | 37,231 | 285,958 | |||||||
Payments of leasehold improvement to related party | 24,280 | 29,406 | 22,661 | |||||||
Hailiang Finance [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Net deposits(withdrawals) of cash at a related party finance entity | 679,018 | 109,998 | 81,716 | |||||||
Term deposits held by related party | 204,000 | 401,000 | ||||||||
Cash payments for term deposits placed with related party finance entity | 204,000 | 1,953,600 | 1,212,430 | |||||||
Cash receipts of maturity of term deposits placed with related party finance entity | ¥ 401,000 | ¥ 1,552,600 | ¥ 1,272,430 | |||||||
Haibo Education [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Proceeds from contributions of former shareholder | ¥ 6,000 | |||||||||
Haibo Education [Member] | Ningbo Haoliang [Member] | ||||||||||
Disclosure of related party [Line Items] | ||||||||||
Percentage of voting equity interests acquired | 56.00% | |||||||||
Consideration paid (received) | ¥ 3,360 | |||||||||
[1] | On October 31, 2016, the Company provided a one-year-period loan to Hong Kong Leonit Limited (“Leonit”) amounting to USD14,500, approximately RMB98,229 (“USD Loan”). On the same date, Hailiang Consulting made a one-year-period loan from Hailiang Group Co., Ltd amounting to RMB99,603 with interest free (“RMB Loan”). On October 9, 2017, the Company agreed to extend the loan with Leonit, pursuant to which the USD Loan’s due date was extended to due October 30, 2018. Similarly, Hailiang Group and Hailiang Consulting agreed to a loan extension pursuant to which the RMB Loan was due on October 30, 2018. Through an understanding among the aforementioned parties, the USD Loans are “secured” by the RMB Loan. It is the understanding among the parties that when the USD Loan is repaid, the RMB Loan will similarly be repaid. On December 5, 2017, the Company made a one-year-period loan from Leonit amounting to USD1,150, approximately RMB7,609, for the need of US Dollars. The loan of RMB98,229 made to Leonit and loan of RMB7,609 made from Leonit were recognized in “Amount due from related parties”, and the loan of RMB99,603 made from Hailiang Group was recognized in “Amount due to related parties” as of June 30, 2018. | |||||||||
[2] | As at June 30, 2017 and 2018, the Group has cash in a related party finance entity of RMB61,715 and RMB740,733, respectively. During the years ended June 30, 2016 and 2018, net amount of RMB81,716 and RMB679,018 were placed with Hailiang Finance, respectively. During the year ended June 30, 2017, net amount of RMB109,998 were withdrawn from Hailiang Finance. The cash in a related party finance entity are held for the purpose of meeting short-term cash commitments, such as to pay for the Group’s operating expenses at any time. As at June 30, 2017 and 2018, the Group has term deposits with maturities ranging from three months to less than one year amounting to RMB401,000 and RMB204,000 that are placed at Hailiang Finance, respectively. During the years ended June 30, 2016, 2017 and 2018, term deposits of RMB1,212,430, RMB1,953,600 and RMB204,000 was placed with Hailiang Finance, of which RMB1,272,430, RMB1,552,600 and RMB401,000 matured, respectively. The term deposits are held for investment purpose and can be withdrawn prior to their maturity without incurring significant penalties. Such amounts have been presented as investing activities in the statements of cash flows. The interest income from the deposits during the years ended June 30, 2016, 2017 and 2018 amounted to RMB2,683, RMB5,847 and RMB11,464, respectively. | |||||||||
[3] | During the years ended June 30, 2016, 2017 and 2018, Hailiang Group paid professional service fees and other expenses of RMB3,356, RMB3,836 and RMB4,612 on behalf of the Group, respectively. Such amount is due and payable on demand, and the Group repaid RMB1,782, RMB4,536 and RMB4,124 to Hailiang Group during the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2016, the Group paid RMB11,567 on behalf of Hailiang Hospital for leasehold improvement, the balance has been fully returned to the Group on September 21, 2016. During the year ended June 30, 2018, the Group paid expenses of RMB4,259, RMB2,764, RMB1,016 and RMB1,181 on behalf of Hailiang Preschool, Hailiang Kindergarten, Hailiang Investment, Hailiang Hospital, respectively. Such amounts are receivable on demand, and the related parties aforementioned repaid RMB4,422, RMB3,135, RMB1,014 and RMB163 during the year ended June 30, 2018, respectively. The unpaid expenses due to related parties and the uncollected amount due from related parties was included in “Amount due to related parties” and “Amount due from related parties” as of June 30, 2016, 2017 and 2018, respectively. | |||||||||
[4] | The Group entered into a series of leasehold improvement contracts with Heng Zhong Da for the leasehold improvement of classroom buildings, dining halls, student dormitories and amount of the contracts was RMB19,680, RMB34,626 and RMB23,174 for the years ended June 30, 2016, 2017 and 2018, respectively. As of June 30, 2018, Heng Zhong Da has provided service and improvement of RMB352,287 (RMB285,958, RMB37,231 and RMB29,098 in fiscal year 2016, 2017 and 2018), which was recorded in “Property and Equipment”. The Group has paid RMB22,661, RMB29,406 and RMB24,280 to Heng Zhong Da during the years ended June 30, 2016, 2017 and 2018, respectively. The accumulate payment included the payment of RMB11,567 on behalf of Hailiang Hospital (see Note 19 (a)(iv)) in the 2016 fiscal year. The unpaid balance of RMB19,508 as of June 30, 2018 was recognized in “Amount due to related parties”. | |||||||||
[5] | The Group purchased healthy food products from Ming Kang Hui Health Food Group Co., Ltd. and Ming Kang Hui Ecological Agriculture Group Co., Ltd. (collectively referred as “Ming Kang Hui”), two companies owned by Hailiang Group, amounting to RMB48,517, RMB48,298 and RMB38,323 during the years ended June 30, 2016, 2017 and 2018, respectively. The amount due to Ming Kang Hui was RMB30,005, RMB6,876 and RMB5,386 as of June 30, 2016, 2017 and 2018, respectively. | |||||||||
[6] | The Group paid information service fee to Hangzhou Mingxin Information Technology Co., Ltd., a related party controlled by Hailiang Group, amounting to RMB6,884 during the year ended June 30, 2018. | |||||||||
[7] | Pursuant to the strategic cooperation agreement signed with Hailiang Group and Hailiang Investment, the Group provided management services to schools acquired by Hailiang Investment, including Hubei Xiantao No.1 Middle School, Zhejiang Xinchang Nanrui Experimental School and 14 schools sponsored or operated by Nanchang Baishu Technology Co., Ltd., which is controlled by Hailiang Investment. Service fees of RMB12,275 was charged from the abovementioned schools during the year ended June 30, 2018. |
Segment information (Details)
Segment information (Details) ¥ in Thousands | 12 Months Ended | ||||
Jun. 30, 2018CNY (¥) | Jun. 30, 2018USD ($) | Jun. 30, 2017CNY (¥) | Jun. 30, 2016CNY (¥) | ||
Disclosure of operating segments [line items] | |||||
Revenue | ¥ 1,169,348 | ¥ 853,295 | ¥ 654,060 | ||
Profit/(loss) before tax | 297,190 | 167,743 | 99,432 | ||
Interest income | 11,715 | 6,709 | 4,906 | ||
Depreciation and amortization | 113,574 | 111,147 | 65,986 | ||
Operating Segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1,282,322 | 853,295 | 654,060 | ||
Profit/(loss) before tax | 297,190 | 167,743 | 99,432 | ||
Elimination of intersegment amounts [member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (112,974) | ||||
Profit/(loss) before tax | 0 | ||||
K12 Educational Services [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1,093,933 | 853,295 | 654,060 | ||
Profit/(loss) before tax | 322,381 | 165,353 | 112,944 | ||
Interest income | 7,059 | 5,980 | 4,900 | ||
Depreciation and amortization | 104,225 | 111,147 | 65,986 | ||
K12 Educational Services [Member] | Operating Segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 1,093,933 | 853,295 | 654,060 | ||
Profit/(loss) before tax | 209,407 | 165,353 | 112,944 | ||
K12 Educational Services [Member] | Elimination of intersegment amounts [member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | $ | $ 0 | ||||
Profit/(loss) before tax | 112,974 | ||||
Management Services [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 19,021 | 0 | 0 | ||
Profit/(loss) before tax | (30,856) | 0 | 0 | ||
Interest income | 24 | ||||
Depreciation and amortization | 29 | 0 | 0 | ||
Management Services [Member] | Operating Segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 117,057 | 0 | 0 | ||
Profit/(loss) before tax | 67,180 | 0 | 0 | ||
Management Services [Member] | Elimination of intersegment amounts [member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (98,036) | ||||
Profit/(loss) before tax | (98,036) | ||||
Other Segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 56,394 | 0 | 0 | ||
Profit/(loss) before tax | 15,039 | 0 | 0 | ||
Interest income | 270 | ||||
Depreciation and amortization | 9,320 | 0 | 0 | ||
Other Segments [Member] | Operating Segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | 71,332 | 0 | 0 | ||
Profit/(loss) before tax | 29,977 | 0 | 0 | ||
Other Segments [Member] | Elimination of intersegment amounts [member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | (14,938) | ||||
Profit/(loss) before tax | (14,938) | ||||
Unallocated Expense [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | [1] | 0 | 0 | 0 | |
Profit/(loss) before tax | [1] | (9,374) | 2,390 | (13,512) | |
Interest income | [1] | 4,362 | 729 | 6 | |
Depreciation and amortization | [1] | 0 | 0 | 0 | |
Unallocated Expense [Member] | Operating Segments [Member] | |||||
Disclosure of operating segments [line items] | |||||
Revenue | [1] | 0 | 0 | 0 | |
Profit/(loss) before tax | [1] | (9,374) | ¥ 2,390 | ¥ (13,512) | |
Unallocated Expense [Member] | Elimination of intersegment amounts [member] | |||||
Disclosure of operating segments [line items] | |||||
Profit/(loss) before tax | [1] | ¥ 0 | |||
[1] | Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. |
Commitments and contingencies_2
Commitments and contingencies (Details) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Contracted, but not provided for: | ||
Leasehold improvement | ¥ 14,988 | ¥ 17,821 |
Commitments and contingencies_3
Commitments and contingencies (Details 1) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Minimum lease payments payable under non-cancellable operating lease | ¥ 676,248 | ¥ 601,218 |
within one year [member] | ||
Minimum lease payments payable under non-cancellable operating lease | 33,764 | 31,515 |
one year to five years [member] | ||
Minimum lease payments payable under non-cancellable operating lease | 145,016 | 132,884 |
Five years thereafter [member] | ||
Minimum lease payments payable under non-cancellable operating lease | ¥ 497,468 | ¥ 436,819 |
Subsequent events (Details Text
Subsequent events (Details Textual) | Sep. 28, 2018 |
Subsequent event [member] | Zhenjiang Jianghe High School of Art CoLtd [Member] | |
Percentage of voting equity interests acquired | 51.00% |
Parent company financial stat_3
Parent company financial statement (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue | ¥ 1,169,348 | ¥ 853,295 | ¥ 654,060 |
Cost of revenue | 804,674 | 648,482 | 498,944 |
Gross profit | 364,674 | 204,813 | 155,116 |
Other income, net | 3,689 | 6,325 | 1,756 |
Selling expenses | 24,539 | 21,902 | 16,753 |
Operating loss | 280,450 | 160,851 | 93,680 |
Loss before tax | 297,190 | 167,743 | 99,432 |
Income tax expense | 66,288 | 0 | 0 |
Loss | 230,902 | 167,743 | 99,432 |
Total comprehensive loss | 228,360 | 169,945 | 107,869 |
Parent [Member] | |||
Revenue | 0 | 0 | 0 |
Cost of revenue | (2,299) | 0 | 0 |
Gross profit | (2,299) | 0 | 0 |
Other income, net | 0 | 0 | 0 |
Selling expenses | 0 | 0 | 0 |
Administrative expenses | (9,124) | (4,148) | (10,195) |
Operating loss | (11,423) | (4,148) | (10,195) |
Net finance expenses | (17) | (8) | (7) |
Loss before tax | (11,440) | (4,156) | (10,202) |
Income tax expense | 0 | 0 | 0 |
Loss | (11,440) | (4,156) | (10,202) |
Other comprehensive income (loss)-foreign currency translation differences | (3,016) | 2,643 | 9,980 |
Total comprehensive loss | ¥ (14,456) | ¥ (1,513) | ¥ (222) |
Parent company financial stat_4
Parent company financial statement (Details 1) - CNY (¥) ¥ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Assets | ||||
Cash | ¥ 812,620 | ¥ 77,801 | ¥ 291,011 | ¥ 233,379 |
Current assets | 1,126,930 | 593,100 | ||
Total assets | 1,884,850 | 1,399,010 | ||
Shareholders' equity | ||||
Share capital | 268 | 267 | ||
Share premium | 134,583 | 134,584 | ||
Accumulated losses | 638,246 | 452,823 | ||
Total shareholders' equity | 1,334,813 | 1,101,613 | 921,668 | 697,815 |
Liabilities | ||||
Other payables due to related parties | 138,215 | 124,841 | ||
Current liabilities | 550,037 | 297,397 | ||
Total liabilities | 550,037 | 297,397 | ||
Total shareholders' equity and liabilities | 1,884,850 | 1,399,010 | ||
Parent [Member] | ||||
Assets | ||||
Other receivables from subsidiaries | 20,330 | 20,178 | ||
Other receivable from related parties | 86,997 | 98,229 | ||
Cash | 526 | 2,508 | ¥ 105,100 | ¥ 53 |
Current assets | 107,853 | 2,508 | ||
Total assets | 107,853 | 120,915 | ||
Shareholders' equity | ||||
Share capital | 268 | 267 | ||
Share premium | 134,583 | 134,584 | ||
Translation reserve | 9,110 | 12,126 | ||
Accumulated losses | (37,503) | (26,063) | ||
Total shareholders' equity | 106,458 | 120,914 | ||
Liabilities | ||||
Other payables due to third parties | 1,393 | 0 | ||
Other payables due to related parties | 2 | 1 | ||
Current liabilities | 1,395 | 1 | ||
Total liabilities | 1,395 | 1 | ||
Total shareholders' equity and liabilities | ¥ 107,853 | ¥ 120,915 |
Parent company financial stat_5
Parent company financial statement (Details 2) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Cash flows from operating activities | ||||
Loss for the year | ¥ 230,902 | ¥ 167,743 | ¥ 99,432 | |
Adjustments for: | ||||
Share based payment | 0 | 0 | 1,459 | |
Net cash used in operating activities | 587,931 | 286,953 | 216,189 | |
Cash flows from investing activities | ||||
Loan made to a related party | [1] | 0 | (98,229) | 0 |
Net cash used in investing activities | 131,145 | (602,251) | (282,568) | |
Cash flows from financing activities | ||||
Proceeds from issue of ordinary shares | 0 | 0 | 122,369 | |
Payment of new shares issuance cost | 0 | 0 | (7,844) | |
Net cash from financing activities | 18,609 | 99,603 | 114,525 | |
Net foreign exchange loss/(gain) | (2,866) | 2,485 | 9,486 | |
Net increase/(decrease) in cash | 737,685 | (215,695) | 48,146 | |
Cash and cash equivalents at beginning of the year | 77,801 | 291,011 | 233,379 | |
Cash and cash equivalents at the end of the year | 812,620 | 77,801 | 291,011 | |
Parent [Member] | ||||
Cash flows from operating activities | ||||
Loss for the year | (11,440) | (4,156) | (10,202) | |
Adjustments for: | ||||
Share based payment | 0 | 0 | 1,459 | |
Change in other payables due to third parties | 1,393 | (1,851) | (7,141) | |
Change in other payables due to a related party | 1 | (651) | (2,087) | |
Change in other receivable due from subsidiaries | (152) | (347) | (1,487) | |
Change in other receivable due from related parties | 3,623 | 0 | 0 | |
Net cash used in operating activities | (6,575) | (7,005) | (19,458) | |
Cash flows from investing activities | ||||
Loan made to a related party | 0 | (98,229) | 0 | |
Net cash used in investing activities | 0 | (98,229) | 0 | |
Cash flows from financing activities | ||||
Proceeds from issue of ordinary shares | 0 | 0 | 122,369 | |
Payment of new shares issuance cost | 0 | 0 | (7,844) | |
Loan made from related parties | 7,609 | 0 | 0 | |
Net cash from financing activities | 7,609 | 0 | 114,525 | |
Net foreign exchange loss/(gain) | (3,016) | 2,642 | 9,980 | |
Net increase/(decrease) in cash | (1,982) | (102,592) | 105,047 | |
Cash and cash equivalents at beginning of the year | 2,508 | 105,100 | 53 | |
Cash and cash equivalents at the end of the year | ¥ 526 | ¥ 2,508 | ¥ 105,100 | |
[1] | On October 31, 2016, the Company provided a one-year-period loan to Hong Kong Leonit Limited (“Leonit”) amounting to USD14,500, approximately RMB98,229 (“USD Loan”). On the same date, Hailiang Consulting made a one-year-period loan from Hailiang Group Co., Ltd amounting to RMB99,603 with interest free (“RMB Loan”). On October 9, 2017, the Company agreed to extend the loan with Leonit, pursuant to which the USD Loan’s due date was extended to due October 30, 2018. Similarly, Hailiang Group and Hailiang Consulting agreed to a loan extension pursuant to which the RMB Loan was due on October 30, 2018. Through an understanding among the aforementioned parties, the USD Loans are “secured” by the RMB Loan. It is the understanding among the parties that when the USD Loan is repaid, the RMB Loan will similarly be repaid. On December 5, 2017, the Company made a one-year-period loan from Leonit amounting to USD1,150, approximately RMB7,609, for the need of US Dollars. The loan of RMB98,229 made to Leonit and loan of RMB7,609 made from Leonit were recognized in “Amount due from related parties”, and the loan of RMB99,603 made from Hailiang Group was recognized in “Amount due to related parties” as of June 30, 2018. |